Document:

EX-10.1

 

Exhibit 10.1

EXECUTION COPY

 

AGREEMENT AND PLAN OF MERGER

DATED AS OF FEBRUARY 21, 2008

AMONG

THE PRINCETON REVIEW, INC.,

TPR/TSI MERGER COMPANY, INC.,

ALTA COLLEGES, INC.

AND

TEST SERVICES, INC.

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE
	ARTICLE 1 THE MERGER	 	 	1
	 
	 

	 	Section 1.1.
	 	The Merger
	 	 	1
	 

	 	Section 1.2.
	 	Closing
	 	 	2
	 

	 	Section 1.3.
	 	Actions at the Closing
	 	 	2
	 

	 	Section 1.4.
	 	Effective Time
	 	 	2
	 

	 	Section 1.5.
	 	Effects of the Merger
	 	 	2
	 

	 	Section 1.6.
	 	Articles of Incorporation and By-laws
	 	 	2
	 

	 	Section 1.7.
	 	Directors and Officers of Surviving Corporation	 	 	2
	 

	 	Section 1.8.
	 	Conversion of Securities, Etc.
	 	 	2
	 

	 	Section 1.9.
	 	Additional Consideration; Price Protection	 	 	3
	 

	 	Section 1.10.
	 	Release of Indemnification Escrow	 	 	5
	 
	 	 	 	 	 	 	 
	ARTICLE 2 REPRESENTATIONS AND WARRANTIES OF PARENT AND THE COMPANY	 	 	5
	 
	 	 	 	 	 	 	 
	 

	 	Section 2.1.
	 	Organization and Standing	 	 	6
	 

	 	Section 2.2.
	 	Power and Authority; Binding Agreement	 	 	6
	 

	 	Section 2.3.
	 	Authorization	 	 	6
	 

	 	Section 2.4.
	 	Capitalization	 	 	6
	 

	 	Section 2.5.
	 	Non Contravention	 	 	7
	 

	 	Section 2.6.
	 	Compliance with Laws	 	 	8
	 

	 	Section 2.7.
	 	Permits
	 	 	8
	 

	 	Section 2.8.
	 	Financial Statements	 	 	8
	 

	 	Section 2.9.
	 	Absence of Changes or Events	 	 	9
	 

	 	Section 2.10.
	 	Undisclosed Liabilities	 	 	9
	 

	 	Section 2.11.
	 	Assets other than Real Property	 	 	9
	 

	 	Section 2.12.
	 	Real Property	 	 	9
	 

	 	Section 2.13.
	 	Contracts	 	 	10
	 

	 	Section 2.14.
	 	Intellectual Property	 	 	12
	 

	 	Section 2.15.
	 	Litigation	 	 	13
	 

	 	Section 2.16.
	 	Taxes	 	 	13
	 

	 	Section 2.17.
	 	Insurance	 	 	15
	 

	 	Section 2.18.
	 	Benefit Plans	 	 	15
	 

	 	Section 2.19.
	 	Employee and Labor Matters	 	 	17
	 

	 	Section 2.20.
	 	Environmental Matters
	 	 	18
	 

	 	Section 2.21.	 	Transactions with Affiliates	 	 	18
	 

	 	Section 2.22.
	 	Accounts; Powers of Attorney; Officers and Directors	 	 	19
	 

	 	Section 2.23.
	 	Brokers	 	 	19
	 

	 	Section 2.24.
	 	Certain Business Practices	 	 	19
	 

	 	Section 2.25.
	 	No Former Business	 	 	19
	 

	 	Section 2.26.
	 	Additional Tax Matters	 	 	19
	 

	 	Section 2.27.
	 	Disclosure	 	 	19

i

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE
	ARTICLE 3 ADDITIONAL REPRESENTATIONS AND WARRANTIES OF PARENT	 	 	20
	 
	 	 	 	 	 	 	 
	 

	 	Section 3.1.
	 	Power and Authority; Binding Agreement
	 	 	20
	 

	 	Section 3.2.
	 	Non Contravention
	 	 	20
	 

	 	Section 3.3.
	 	Title to Securities
	 	 	20
	 
	 	 	 	 	 	 	 
	ARTICLE 4 REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB	 	 	21
	 
	 	 	 	 	 	 	 
	 

	 	Section 4.1.
	 	Organization and Standing; Outstanding Shares
	 	 	21
	 

	 	Section 4.2.
	 	Power and Authority; Binding Agreement
	 	 	21
	 

	 	Section 4.3.
	 	Non Contravention
	 	 	21
	 

	 	Section 4.4.
	 	No Interim Operations of Merger Sub
	 	 	22
	 

	 	Section 4.5.
	 	SEC Filings; Financial Statements
	 	 	22
	 

	 	Section 4.6.
	 	Undisclosed Liabilities
	 	 	23
	 

	 	Section 4.7.
	 	Litigation
	 	 	23
	 

	 	Section 4.8.
	 	No Vote
	 	 	23
	 

	 	Section 4.9.
	 	Additional Tax Matters
	 	 	23
	 

	 	Section 4.10.
	 	Disclosure
	 	 	23
	 
	 	 	 	 	 	 	 
	ARTICLE 5 CONDITIONS PRECEDENT	 	 	24
	 
	 	 	 	 	 	 	 
	 

	 	Section 5.1.
	 	Conditions to Each Party’s Obligation
	 	 	24
	 

	 	Section 5.2.
	 	Conditions to Buyer’s and Merger Sub’s Obligations
	 	 	24
	 

	 	Section 5.3.
	 	Conditions to Parent’s and the Company’s Obligations
	 	 	26
	 
	 	 	 	 	 	 	 
	ARTICLE 6 CERTAIN COVENANTS	 	 	27
	 
	 	 	 	 	 	 	 
	 

	 	Section 6.1.
	 	Conduct of Business
	 	 	27
	 

	 	Section 6.2.
	 	Access
	 	 	30
	 

	 	Section 6.3.
	 	Parent Covenants
	 	 	30
	 

	 	Section 6.4.
	 	Tax Matters
	 	 	32
	 

	 	Section 6.5.
	 	Consents
	 	 	33
	 

	 	Section 6.6.
	 	Insurance
	 	 	33
	 

	 	Section 6.7.
	 	Exclusivity
	 	 	33
	 

	 	Section 6.8.
	 	Notice of Certain Events
	 	 	34
	 

	 	Section 6.9.
	 	Termination of 401(k) Plan
	 	 	34
	 

	 	Section 6.10.
	 	Parent’s and the Company’s Auditors
	 	 	34
	 

	 	Section 6.11.
	 	Delivery of Stock Ledger and Minute Book of the Company
	 	 	35
	 
	 	 	 	 	 	 	 
	ARTICLE 7 MUTUAL COVENANTS	 	 	35
	 
	 	 	 	 	 	 	 
	 

	 	Section 7.1.
	 	Commercially Reasonable Efforts
	 	 	35
	 

	 	Section 7.2.
	 	Publicity
	 	 	35
	 

	 	Section 7.3.
	 	Expenses
	 	 	35
	 

	 	Section 7.4.
	 	Tax-Free Reorganization Treatment
	 	 	35
	 

	 	Section 7.5.
	 	Escrow Agreement
	 	 	36
	 

	 	Section 7.6.
	 	Further Assurances
	 	 	36

ii

 

	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	PAGE
	ARTICLE 8 INDEMNIFICATION	 	 	36
	 
	 	 	 	 	 	 	 
	 

	 	Section 8.1.
	 	Indemnification
	 	 	36
	 

	 	Section 8.2.
	 	Indemnification Claims
	 	 	37
	 

	 	Section 8.3.
	 	Survival of Representations and Warranties
	 	 	39
	 

	 	Section 8.4.
	 	Fraud Claims; No Contribution; Characterization of Payments
	 	 	39
	 

	 	Section 8.5.
	 	Limitations, Etc.
	 	 	39
	 
	 	 	 	 	 	 	 
	ARTICLE 9 PRIVATE PLACEMENT	 	 	40
	 
	 	 	 	 	 	 	 
	 

	 	Section 9.1.
	 	Private Placement
	 	 	40
	 

	 	Section 9.2.
	 	Authorization and Reservation of Shares
	 	 	41
	 
	 	 	 	 	 	 	 
	ARTICLE 10 TERMINATION	 	 	41
	 
	 

	 	Section 10.1.
	 	Termination
	 	 	41
	 

	 	Section 10.2.
	 	Effect of Termination
	 	 	42
	 
	 	 	 	 	 	 	 
	ARTICLE 11 DEFINED TERMS	 	 	42
	 
	 	 	 	 	 	 	 
	 

	 	Section 11.1.
	 	Definitions
	 	 	42
	 

	 	Section 11.2.
	 	Descriptive Headings; Certain Interpretations
	 	 	51
	 
	 	 	 	 	 	 	 
	ARTICLE 12 MISCELLANEOUS	 	 	51
	 
	 	 	 	 	 	 	 
	 

	 	Section 12.1.
	 	Notices
	 	 	51
	 

	 	Section 12.2.
	 	Assignment
	 	 	52
	 

	 	Section 12.3.
	 	Specific Enforcement
	 	 	52
	 

	 	Section 12.4.
	 	Amendment and Waiver
	 	 	53
	 

	 	Section 12.5.
	 	Entire Agreement
	 	 	53
	 

	 	Section 12.6.
	 	No Third-Party Beneficiaries; Obligations Joint and Several
	 	 	53
	 

	 	Section 12.7.
	 	Counterparts
	 	 	53
	 

	 	Section 12.8.
	 	Governing Law
	 	 	53
	 

	 	Section 12.9.
	 	Severability
	 	 	53
	 

	 	Section 12.10.
	 	Submission to Jurisdiction; Waiver of Jury Trial
	 	 	53
	 

	 	Section 12.11.
	 	Construction
	 	 	54
	 

	 	Section 12.12.
	 	Survival
	 	 	54
	 
	 	 	 	 	 	 	 
	EXHIBIT I	 	 	2
	 
	 	 	 	 	 	 	 
	FORM OF REGISTRATION RIGHTS AGREEMENT	 	 	2

iii

 

EXHIBITS:

	 	 	 
	EXHIBIT A

	 	FORM OF COLORADO STATEMENT OF MERGER
	EXHIBIT B

	 	DIRECTORS AND OFFICERS OF SURVIVING CORPORATION
	EXHIBIT C-1

	 	FORM OF OPINION OF PARENT’S COUNSEL
	EXHIBIT C-2

	 	FORM OF OPINION OF COMPANY’S COUNSEL
	EXHIBIT D

	 	FORM OF NON-COMPETITION AGREEMENT
	EXHIBIT E

	 	FORM OF INVESTMENT REPRESENTATION LETTER
	EXHIBIT F

	 	FORM OF TRANSITION SERVICES AGREEMENT
	EXHIBIT G

	 	FORM OF OPINION OF BUYER’S COUNSEL
	EXHIBIT H

	 	FORM OF ESCROW AGREEMENT
	EXHIBIT I

	 	FORM OF REGISTRATION RIGHTS AGREEMENT

SCHEDULES:

DISCLOSURE SCHEDULE

SCHEDULE 4.6

SCHEDULE 5.2(f)

SCHEDULE 5.2(k)

SCHEDULE 5.2(l)

iv

 

AGREEMENT AND PLAN OF MERGER

     THIS AGREEMENT AND PLAN OF MERGER (“this Agreement”), dated as of February 21, 2008, is made
by and among The Princeton Review, Inc., a Delaware corporation (“Buyer”), TPR/TSI Merger Company,
Inc., a Colorado corporation and a wholly-owned subsidiary of Buyer (“Merger Sub”), Alta Colleges,
Inc., a Delaware corporation (“Parent”) and Test Services, Inc., a Colorado corporation and a
wholly-owned subsidiary of Parent. The foregoing parties are sometimes referred to herein each
individually as a “Party” and, collectively, as the “Parties.”

     The Company operates a test preparation services business pursuant to franchise agreements
with Buyer. Buyer desires to acquire the entire equity interest in the Company from Parent and
Parent desires to sell the entire equity interest in the Company, on the terms and conditions set
forth in this Agreement.

     This Agreement contemplates a merger of Merger Sub with and into the Company (the “Merger”).
In such Merger, Parent will receive a combination of Buyer Common Stock (as defined below) and cash
in exchange for its Company Common Stock (as defined below).

     In furtherance of the Merger, (a) the Boards of Directors of each of Merger Sub and the
Company have duly adopted the plan of merger set forth in this Agreement and recommended it for
approval by their respective shareholders or stockholders, and have approved (i) a Statement of
Merger to be filed with the Secretary of State of the State of Colorado (the “Colorado Statement of
Merger”) in substantially the form of Exhibit A attached hereto to effectuate the Merger,
and (ii) the Merger; (b) the Boards of Directors of Buyer and Parent have duly approved this
Agreement and the Merger; and (c) Buyer as the sole stockholder of Merger Sub and Parent as the
sole stockholder of the Company have approved the plan of merger set forth in this Agreement, all
in accordance with this Agreement and Sections 7-90-203.3 of the Colorado Corporations and
Associations Act, and Sections 7-111-101 and 7-111-103 of the Colorado Business Corporation Act
(collectively, the “Colorado Acts”).

     This Merger is intended to be treated as a reorganization within the meaning of Section 368(a)
of the Code.

     NOW, THEREFORE, in consideration of the mutual benefits to be derived from this Agreement and
the representations, warranties, covenants, agreements, conditions and promises contained herein,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the Parties hereby agree as follows.

ARTICLE 1

THE MERGER

     Section 1.1. The Merger. Upon the terms and subject to the conditions set forth in
this Agreement, and in accordance with the Colorado Acts, at the Effective Time, Merger Sub shall
be merged with and into the Company. Following the Merger, the separate corporate existence of
Merger Sub shall cease and the Company shall continue as the surviving corporation (the “Surviving
Corporation”).

 

 

     Section 1.2. Closing. The closing of the Merger (the “Closing”) shall be held at the
offices of Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C., One Financial Center, Boston,
Massachusetts, at 10:00 a.m. on a date that is as soon as practicable and, in any event, not later
than two (2) Business Days (as defined below), following satisfaction (except to the extent waived
in accordance with Article 5) of all conditions to the obligations of the Parties to consummate, or
cause the consummation, of the Merger and the taking of all other actions (other than those that by
their terms are to be satisfied or taken, or waived, at the Closing) set forth in Article 5, or on
such other date, and at such other time or place, as Buyer and Parent may mutually agree in
writing.

     Section 1.3. Actions at the Closing. At the Closing, the Parties shall file, or cause
to be filed, the Colorado Statement of Merger and other appropriate documents in the office of the
Secretary of State of the State of Colorado, and shall make all other filings or recordings
required under the Colorado Acts, to give effect to the Merger.

     Section 1.4. Effective Time. The Merger shall become effective at the time of the
acceptance of the filing of the Colorado Statement of Merger by the Secretary of State of the State
of Colorado.

     Section 1.5. Effects of the Merge. The Merger shall have the effects provided for in
Sections 7-90-204 and 7-111-106 of the Colorado Acts.

     Section 1.6. Articles of Incorporation and By-laws. By virtue of the Merger, the
Articles of Incorporation of the Surviving Corporation immediately following the Effective Time
shall be amended and restated so as to reflect the same provisions as the Articles of Incorporation
of Merger Sub as in effect immediately prior to the Effective Time, until amended, except that the
name of the corporation set forth therein shall be changed to the name of the Company. The By-laws
of the Surviving Corporation immediately following the Effective Time shall reflect the same
provisions as the By-laws of Merger Sub as in effect immediately prior to the Effective Time except
that the name of the corporation set forth therein shall be changed to the name of the
Company.

     Section 1.7. Directors and Officers of Surviving Corporation. From and after the
Effective Time, (a) the individuals identified on Exhibit B-1 shall be the initial
directors of the Surviving Corporation, and (b) the individuals identified on Exhibit B-2
shall be the initial officers of the Surviving Corporation, in each case, to hold office until the
earlier of their death, resignation or removal or until their successors are duly elected and
qualified.

     Section 1.8. Conversion of Securities, Etc.

          (a) Conversion of Company Securities. By virtue of the Merger and without any action
on the part of Buyer, Merger Sub, Parent or the Company, or their respective shareholders or
stockholders, except as otherwise provided in this Section 1.8, each share of Company Common Stock
(as defined below) issued and outstanding immediately prior to the Effective Time shall be
automatically converted into the right to receive from Buyer, in accordance with and subject to the
terms of payment and delivery as herein provided for, (i) at and as of the Effective Time, (x) .56472632 of a share of Buyer Common Stock and (y)
$0.61484996 in cash (together, the “Closing Consideration”) and, (ii) no later than April 13,
2010, any per-share Additional Consideration (as defined below and, together with the Closing
Consideration, the “Merger Consideration”) Buyer is required to pay to Parent pursuant to Sections
1.9. Notwithstanding any provision hereof to the contrary, in the event that this

2

 

Agreement is
terminated without the Merger having been consummated, Buyer shall return all shares of Company
Common Stock submitted or transferred to Merger Sub or Buyer pursuant to Section 1.10.

          (b) Payment of Closing Consideration. After the Effective Time, Parent, after
surrender of the stock certificate that represented all of the issued and outstanding shares of
Company Common Stock (the “Company Certificate”), together with a letter of transmittal duly
executed and completed in accordance with the instructions thereto, shall be entitled to receive,
with respect to each share of Company Common Stock, shares of Buyer Common Stock and cash in
accordance with Section 1.8(a)(i). Upon such delivery of the Company Certificate and letter of
transmittal, Buyer shall (i) issue to and in the name of Parent a stock certificate for shares of
Buyer Common Stock representing four million two hundred twenty-five thousand (4,225,000) shares of
Buyer Common Stock, (ii) pay to Parent in cash two million one hundred thousand dollars
($2,100,000), by wire transfer of immediately available funds to an account designated by Parent
prior to the Closing Date, and (iii) pay to and deposit into escrow with the Escrow Agent (as
defined below), two million five hundred thousand dollars ($2,500,000) (the “Escrow Amount”), by
wire transfer of immediately available funds to an account designated by the Escrow Agent prior to
the Closing Date, without any interest thereon in any case, whereupon the Company Certificate shall
forthwith be canceled. Until so surrendered, the Company Certificate shall upon and following the
Effective Time represent solely the right to receive the Merger Consideration for all of the shares
of Company Common Stock it represented prior to the Closing, without interest, and any dividends or
other distributions to which Parent becomes entitled in accordance with this Agreement upon
surrender of the Company Certificate.

          (c) No Company Stock Options. The Parties acknowledge and agree that no Closing
Consideration or Additional Consideration will be issued and paid as a result of or in connection
with the Merger with respect to any options, warrants or similar rights to purchase securities of
the Company or Parent held by any Person (as defined below).

          (d) Capital Stock of Merger Sub. At the Effective Time, each share of common stock,
$0.01 par value per share, of Merger Sub issued and outstanding immediately prior to the Effective
Time shall constitute one validly issued, fully paid and non-assessable share of common stock,
$0.01 par value per share, of the Surviving Corporation.

          (e) Effect on Company Common Stock. At the Effective Time, the shares of Company
Common Stock converted into Parent’s right to receive the Closing Consideration and any Additional
Consideration that becomes payable in accordance with Section 1.8(a)(ii) shall no longer be
outstanding and shall automatically be canceled and retired and shall cease to exist, and Parent
shall cease to have any rights with respect thereto, except the right to receive the Merger
Consideration.

     Section 1.9. Additional Consideration; Price Protection.

          (a) Based on the First Anniversary Sixty-Day Average (as defined below), the First Anniversary
Transaction Value (as defined below) shall be determined on the first anniversary following the
Closing Date. If the First Anniversary Transaction Value is less than thirty six million dollars
($36,000,000) (the “Minimum Transaction Value”), the shortfall shall

3

 

represent the maximum
Additional Consideration (as defined below) that Buyer shall be required to pay to Parent pursuant
to this Section 1.9 (the “Maximum Additional Consideration”). Notwithstanding any other provision
of this Agreement to the contrary, in the event that the First Anniversary Transaction Value is
equal to or more than the Minimum Transaction Value, the provisions of this Section 1.9, other than
this sentence and Section 1.9(f) insofar as is applicable to the determination of the First
Anniversary Transaction Value, shall not be of any force or effect whatsoever.

          (b) The Final Transaction Value Determination shall be made upon the earliest of (i) the date
on which Parent sells the last of the shares of Buyer Common Stock that constituted the portion of
the Closing Consideration paid in the form of shares of Buyer Common Stock, whether in a single
sale or a series of sales, (ii) the date on which Buyer, by merger or otherwise, is sold that
results in a Change of Control (as defined below) in which the shares of Buyer Common Stock
representing the Closing Consideration are exchanged for or converted into transaction
consideration or the sale of all or substantially all of the assets of Buyer followed by a
liquidation of the proceeds therefrom or the dissolution and liquidation of Buyer, and (iii) March
31, 2010.

          (c) The Final Transaction Value Determination shall be made by determining the aggregate
proceeds to Parent from the occurrence of any of the events set forth in clause (i), or clause (ii)
in Section 1.9(b), prior to Taxes payable by Parent arising from such occurrence (whether or not
deferred), or, in the case of the Final Transaction Value Determination under clause (iii) in
Section 1.9(b), by determining the sum of the aggregate proceeds to Parent from any sale or sales
on or prior to March 31, 2010 of less than all of the shares of Buyer Common Stock that constituted
the portion of the Closing Consideration paid in the form of Buyer Common Stock, prior to Taxes as
aforesaid, and the value of any shares of Buyer Common Stock that constituted the portion of the
Closing Consideration paid in the form of Buyer Common Stock not sold on or prior to March 31,
2010, valued on the basis of the Final Determination Sixty-Day Average (as defined below), and
adding the result to the amount of cash paid to Parent and the Escrow Agent as Closing
Consideration (the “Final Transaction Value Determination”).

          (d) If the value determined by the Final Transaction Value Determination based on the Final
Determination Sixty-Day Average is less than the Minimum Transaction Value, Buyer shall pay to
Parent the difference as additional consideration in the Merger (“Additional Consideration”).
Subject to Section 1.9(e), Buyer shall pay the Additional Consideration by issuing to Parent that
aggregate number of additional shares of Buyer Common Stock (“Additional Shares”), valued on the
basis of the Final Determination Ten-Day Average, that is equal in value to such difference but not
in any event a number of shares of Buyer Common Stock, so valued, that has a value greater than the
Maximum Additional Consideration; provided that, subject to the proviso in Section 1.9(e), Buyer in
satisfying its obligation to pay
any Additional Consideration shall not, without Parent’s consent after consultation between
Buyer and Parent, issue such number of Additional Shares as would result in Parent holding shares
of Buyer Common Stock that would represent more than 9.95% of all shares of Buyer Common Stock
outstanding at such time.

4

 

          (e) Notwithstanding Section 1.9(d), Buyer may satisfy any or all of its obligation to pay
Additional Consideration, if any, by, instead of issuing Additional Shares, electing to pay to
Parent in cash any or all Additional Consideration that Buyer elects to pay in cash, by wire
transfer of immediately available funds to an account designated by Parent prior to April 13, 2010;
provided that Buyer shall not pay Additional Consideration in cash to the extent that would be
inconsistent with Buyer’s covenant in the proviso in the first sentence of Section 7.4 to use its
best efforts not to take any action that would result in the Merger not being a Tax-Free
Reorganization (as defined below).

          (f) In the event that, after the Closing, Buyer declares and issues a stock dividend or
effects a stock split, stock combination, recapitalization or similar event, the foregoing
provisions of this Section 1.9 shall be deemed appropriately adjusted such that the economic
effects for Parent and Buyer will be the same as if there had been no such stock dividend, stock
split, stock combination, recapitalization or other similar event.

     Section 1.10. Release of Indemnification Escrow.

          (a) On March 31, 2009 (the “Escrow Release Date”), the amount by which the Escrow Amount
exceeds the Release Date Indemnification Amount (as defined below) as of such date, less the
aggregate amount of claims for indemnification theretofore paid to Buyer Indemnified Parties (as
defined below), shall be released by the Escrow Agent to Parent; provided that, in the
event there is an asserted but unresolved claim for Damages (as defined below) or more than one
such claim for each of which Buyer has provided a Claim Notice (as defined below) to Parent
pursuant to the provisions of Article 8, the Escrow Agent in accordance with the Escrow Agreement
shall continue to withhold a portion of the Escrow Amount equal in value to the amount of Damages
set forth in such Claim Notice(s).

          (b) Following the Escrow Release Date, if any indemnification claim made under this Agreement
but not finally resolved by the Escrow Release Date and with respect to which the Escrow Agent has
withheld a portion of the Escrow Amount pursuant to Section 1.10(a) is finally resolved, any amount
so withheld in excess of the amount to which Buyer or the Indemnified Parties (as defined below)
are entitled shall be released to Parent.

ARTICLE 2

REPRESENTATIONS AND WARRANTIES OF PARENT AND THE COMPANY

     Parent and the Company, jointly and severally, represent and warrant to Buyer and Merger Sub
that the statements contained in this Article 2 are true and correct as of the date of this
Agreement, and will be true and correct as of the Closing Date, except as otherwise set forth in
the Disclosure Schedule delivered by Parent and the Company to Buyer on the date hereof (the
“Disclosure Schedule” or the “Schedule”). As provided below, the Disclosure Schedule will be
arranged in paragraphs corresponding to the Sections and subsections contained in this Article 2.
Disclosure made in any particular Schedule shall be deemed made in any other Schedule or
Schedules to which the relevance of such disclosure is reasonably apparent from the text of such
disclosure.

5

 

     Section 2.1. Organization and Standing. The Company (a) is a corporation duly
organized, validly existing and in good standing under the Laws of the State of Colorado, (b) has
all requisite corporate power and authority to carry on its business as now being conducted and (c)
is duly qualified or licensed to do business and is in good standing in each jurisdiction in which
the nature of its business or the ownership, leasing or operation of its properties makes such
qualification or licensing necessary, which jurisdictions are listed on Section 2.1(c) of the
Disclosure Schedule, except where such failure to be so qualified or licensed would not
reasonably be expected to result in a Material Adverse Change to the Company. The Company has made
available to Buyer complete and correct copies of its Constitutive Documents (as defined below), as
amended through the date hereof. Parent or the Company has made available to Buyer and its
Representatives copies of the stock record book and the minute books of the Company for the past
two (2) years, each of which is true and complete.

     Section 2.2. Power and Authority; Binding Agreement. Subject to the adoption of the
plan of merger set forth in this Agreement by the Company’s Board of Directors and its approval by
Parent as the sole shareholder of the Company, (i) the Company has all requisite corporate power
and authority to execute and deliver this Agreement, to consummate the Merger and the other
transactions contemplated hereby and to perform its obligations hereunder, and (ii) the execution
and delivery by the Company of this Agreement and the consummation by the Company of the Merger and
the other transactions contemplated hereby have been duly authorized by all necessary corporate
action on the part of the Company, and no other proceedings on the part of the Company or the
holders of Company Common Stock shall be necessary to authorize this Agreement or to consummate the
Merger and the other transactions contemplated hereby. This Agreement has been duly executed and
delivered by the Company and, assuming due execution and delivery by the other Parties, constitutes
a valid and binding obligation of the Company, enforceable against the Company in accordance with
its terms, subject to the effect of applicable bankruptcy, insolvency, reorganization, moratorium
or other similar federal or state laws affecting the rights of creditors and the effect or
availability of rules of law governing specific performance, injunctive relief or other equitable
remedies (regardless of whether any such remedy is considered in a proceeding at law or in equity)
(collectively, the “Bankruptcy Laws and Equitable Principles”).

     Section 2.3. Authorization. The Board of Directors of the Company, at a meeting duly
called and held at which all directors of the Company were present, duly and unanimously adopted
resolutions (i) approving the Merger, this Agreement and the other transactions contemplated hereby
and adopting the plan of merger set forth in this Agreement, (ii) recommending that Parent, as the
stockholder of the Company, approve the plan of merger set forth in this Agreement, and (iii)
authorizing the Company to enter into this Agreement and to consummate the Merger and the other
transactions contemplated hereby, on the terms and subject to the conditions set forth in this
Agreement. Parent, as the stockholder of the Company, by written consent with respect to all of
the issued and outstanding shares of Company Common Stock, has approved the plan of merger set
forth in this Agreement.

     Section 2.4. Capitalization.

          (a) The authorized Capital Stock of the Company consists of 10,000,000 shares of common stock,
par value $0.01 per share (“Company Common Stock”), of which

6

 

7,481,500 shares are issued and
outstanding and no shares are held in the treasury of the Company.

          (b) All of the issued and outstanding shares of Company Common Stock are owned of record and
beneficially solely by Parent and have been duly authorized and validly issued and are fully paid
and non-assessable. All of the issued and outstanding shares of Company Common Stock have been
offered, issued and sold by the Company in compliance in all material respects with all applicable
federal and state securities Laws.

          (c) There are no stock plans pursuant to which shares of Company Common Stock have been or may
be issued or options or other rights to purchase shares of Company Common Stock have been or may be
issued to directors, employees, consultants or any other Persons, nor are there or have there been
any grants of stock appreciation rights, “phantom” or “shadow” stock or other equity incentive or
compensation or similar rights entitling any Persons to share in appreciation in the equity value
of the Company as to which the Company has or will have any obligation. Other than this Agreement,
there is no contract or other obligation of the Company to issue or sell any of its securities.

          (d) The Company has no Subsidiaries (as defined below) and does not own or control, directly
or indirectly, any shares of Capital Stock of or any other equity interest in any other Person.
There is no Indebtedness (as defined below) having the right to vote on any matters on which
stockholders of the Company may vote.

     Section 2.5. Non Contravention.

          (a) The execution and delivery by the Company of this Agreement, the consummation of the
Merger and the other transactions contemplated by this Agreement and the compliance by the Company
with the provisions of this Agreement do not and will not result in any violation or breach of, or
default (with or without notice or lapse of time or both) under, or give rise to a right of, or
result in, termination, cancellation or acceleration of any obligation, or result in the creation
of any Lien other than a Permitted Lien, in or upon any of the properties or assets of the Company
under any provision of (i) the Constitutive Documents of the Company, (ii) except as set forth on
Section 2.5(a) of the Disclosure Schedule, any loan or credit agreement, bond, debenture,
note, mortgage, indenture, guarantee, lease or other Contract to which the Company is a party or
bound by or its properties or assets are bound by or subject to or otherwise under which the
Company has rights or benefits or (iii) except that would not reasonably be expected to result in a
Material Adverse Change to the Company or the Surviving Corporation, any Law or Judgment (as
defined below) specifically naming the Company or any of its Affiliates (as defined below), in each
case, applicable to the Company or its properties or assets.

          (b) No consent, approval, order or authorization of, registration, declaration or filing with,
or notice to, any Governmental Entity (as defined below) is required by or with
respect to the Company in connection with the execution and delivery by the Company of this
Agreement, the consummation by the Company of the Merger and the other transactions contemplated
hereby or the compliance by the Company with the provisions of this Agreement, except for (i) the
filing of the Colorado Statement of Merger with the Secretary of State of the

7

 

State of Colorado and
appropriate documents with the relevant authorities of other states in which the Company is
qualified to do business, and (ii) such other consents, approvals, orders, authorizations,
registrations, declarations, filings and notices, the failure of which to be obtained or made,
individually or in the aggregate, would not impair in any material respect the ability of the
Company to perform its obligations under this Agreement or prevent or materially impede or delay
the consummation of the Merger or any of the other transactions contemplated hereby or cause a
Material Adverse Change to the Company or, following the Effective Time, the Surviving Corporation.

     Section 2.6. Compliance with Laws. Except as set forth in Section 2.6 of the
Disclosure Schedule, since September 30, 2007, the Company has been in compliance in all
material respects with all applicable material Laws and Judgments of any Governmental Entity
applicable to its businesses or operations. There is no pending, or to the Company’s knowledge,
threatened claim, demand or investigation alleging a violation by the Company of any applicable
material Law or Judgment of any Governmental Entity applicable to its businesses or operations as
of the date hereof.

     Section 2.7. Permits. The Company validly holds and has in full force and effect all
Permits (as defined below) necessary for it to own, lease or operate its properties and assets and
to carry on its businesses as now conducted, and there has occurred no material violation of, or
default (with or without notice or lapse of time or both) under, or event giving to any other
Person that would reasonably be expected to result in any right of termination, amendment or
cancellation of, any such Permit. The Company has complied in all material respects with the terms
and conditions of all Permits issued to or held by the Company and, to the Company’s knowledge,
such Permits will not be subject to suspension, modification, revocation or non-renewal as a result
of the execution and delivery of this Agreement, or the consummation of the Merger or any of the
other transactions contemplated hereby. Section 2.7 of the Disclosure Schedule lists each
Permit issued or granted to or held by the Company, the failure of which to be obtained would
reasonably be expected to impair in any material respect the ability of the Company to perform its
obligations under this Agreement or prevent or materially impede or delay the consummation of the
Merger or any of the other transactions contemplated hereby or cause a Material Adverse Change to
the Company. All of the Permits listed on Section 2.7 of the Disclosure Schedule are held
in the name of the Company, and none are held in the name of any Company Personnel (as defined
below) or agent or otherwise on behalf of the Company.

     Section 2.8. Financial Statements.

          (a) Section 2.8 of the Disclosure Schedule sets forth the unaudited consolidated
balance sheets and statements of income, changes in stockholders’ equity and cash flows of the
Company as of and for the fiscal year ended on the Most Recent Yearend Financials Date (as defined
below) and the two previous fiscal years, together with any footnotes thereto, and the unaudited
consolidated balance sheet (the “Most Recent Balance Sheet”) and statements of income, changes in
stockholders’ equity and cash flows of the Company as of and
for the three-month period ended on the Most Recent Balance Sheet Date (together, the
“Financial Statements”). The Financial Statements (a) are consistent with the books and records of
the Company, (b) have been prepared in accordance with GAAP (except as may be indicated on the
notes thereto) and (c) present fairly the consolidated financial position, results of

8

 

operations,
stockholders’ equity and cash flows of the Company as of the respective dates thereof and for the
periods referred to therein, subject to normal year-end adjustments.

          (b) All accounts receivable of the Company, reflected on the Most Recent Balance Sheet or
created after the date thereof, are current and arose from valid transactions in the Ordinary
Course (as defined below) with unrelated third parties. To the Company’s knowledge, the Company’s
accounts receivable set forth on the Most Recent Balance Sheet are collectible in full, net of any
reserves shown on the Most Recent Balance Sheet.

     Section 2.9. Absence of Changes or Events. Except as set forth in Section 2.9 of
the Disclosure Schedule, since September 30, 2007, (a) the Company has conducted its business
only in the Ordinary Course, (b) there has occurred no Material Adverse Change with respect to the
Company and (c) the Company has not taken any of the actions that, if taken after the date of this
Agreement, would constitute a breach of any of the covenants set forth in Articles 6 or 7.

     Section 2.10. Undisclosed Liabilities. The Company has no liabilities or obligations
of any nature (whether known or unknown, absolute or contingent, liquidated, due, accrued or not,
or otherwise), except for such liabilities and obligations, (a) to the extent shown on the Most
Recent Balance Sheet, (b) that are immaterial and are incurred in the Ordinary Course since the
Most Recent Balance Sheet Date (c) that are not required to be reflected on a balance sheet
prepared in accordance with GAAP, or (d) that are set forth in Contracts listed on Section
2.13(a) of the Disclosure Schedule, other than contingent obligations due to any breaches or
non-performance thereunder and required to be reflected on the Most Recent Balance Sheet.

     Section 2.11. Assets other than Real Property.

          (a) The Company is the true and lawful owner and has good and valid title to all assets
(tangible or intangible) reflected on the Most Recent Balance Sheet or thereafter acquired, except
those sold or otherwise disposed of for fair value in the Ordinary Course since the Most Recent
Balance Sheet Date and not in violation of this Agreement, in each case free and clear of all Liens
(other than Permitted Liens (as defined below)).

          (b) The Company owns or leases all tangible assets sufficient for the conduct of its
businesses as presently conducted and as presently proposed to be conducted.

     Section 2.12. Real Property.

          (a) The Company owns no real property or interests (other
than leasehold interests) in real property.

          (b) Section 2.12(b) of the Disclosure Schedule lists all real property and interests
in real property leased by the Company (each, a “Leased Property”) and lists the term of such
lease, any extension or expansion options and the rent payable thereunder. The Company has
delivered to Buyer complete and accurate copies of all such leases, and any
operating agreements relating thereto. With respect to each Leased Property, (i) the Company
has good and valid title to the leasehold estate relating thereto, free and clear of all Liens,
leases, assignments, subleases, easements, covenants, rights-of-way and other material restrictions
of any nature whatsoever, other than Permitted Liens, (ii) the lease relating to such Leased
Property is in writing and is legal, valid, binding, in full force and effect and enforceable in
accordance with its terms, (iii) the lease relating to such Leased Property will, immediately
following the

9

 

Effective Time, continue to be legal, valid, binding, in full force and effect and
enforceable in accordance with its terms as in effect on the date hereof, (iv) the Company is not
and, to the knowledge of the Company, no other party to the lease relating to such Leased Property
is, in material breach or violation of, or in material default under, such lease, (v) no event,
occurrence, condition or act has occurred, is pending or, to the knowledge of the Company is
threatened, which, with the giving of notice, lapse of time, or the happening of any further event,
occurrence, condition or act, would constitute a material breach or default by the Company or, to
the knowledge of the Company, any other party to such lease, under such lease, or give rise to a
right of termination or cancellation under any such leases, (vi) there are no material disputes,
oral agreements or forbearance programs in effect as to the lease relating to such Leased Property,
(vii) all facilities included in such Leased Property are supplied with utilities and other
services adequate for the operation of such facilities as presently operated, (viii) there is no
Lien, easement, covenant or other restriction (other than Permitted Liens) applicable to such
Leased Property which would reasonably be expected to materially impair the current uses or the
occupancy by the Company of such Leased Property, (ix) all rents and additional rents due on the
lease relating to such Leased Property have been paid, and (x) the current use by the Company of
the facilities located on such Leased Property does not violate any local zoning or similar land
use requirement or other Law in any material respect.

     Section 2.13. Contracts.

          (a) Section 2.13(a) of the Disclosure Schedule lists the following Contracts to which
the Company is a party or is bound by (each such Contract, whether or not set forth in such section
of the Disclosure Schedule, a “Material Contract”), except for any Contract between the Company and
Buyer:

               any employment or consulting Contract, or any employee collective bargaining agreement or
other Contract with any labor union or any Company Personnel;

               any Contract not to compete or otherwise materially restricting the development, manufacture,
marketing, distribution or sale of any products of the Company and its Subsidiaries and, to the
extent applicable, products under development (collectively, the “Products”) or services;

               any Contract between the Company and (A) Parent, (B) any former holder of Company Common Stock
or (C) any Company Personnel;

               any lease, sublease or similar Contract with any Person under which the Company is a lessor or
sublessor of, or makes available for use to any Person (other than the Company), (A) any Leased
Property or (B) any portion of any premises otherwise occupied by the Company;

               any lease or similar Contract with any Person under which (A) the Company is lessee of, or
holds or uses, any machinery, equipment, vehicle or other tangible personal property owned by any
Person, where the annual payments under any such lease or such Contract exceeds $100,000 or (B) the
Company is a lessor or sublessor of, or makes available for

10

 

use by any Person, any tangible
personal property owned or leased by the Company, other than in those entered into in the Ordinary
Course;

               any Contract for the purchase or sale of Products or the furnishing or receipt of services (A)
calling for performance over a period of more than one year and which is not terminable by the
Company on ninety (90) days’ notice or less, without payment of a termination fee or similar
payment, (B) requiring or otherwise involving payment by or to the Company of more than an
aggregate of $100,000, (C) in which the Company has granted manufacturing rights, “most favored
nation” pricing provisions or marketing or distribution rights relating to any Products, services
or territory and which is not terminable by the Company on ninety (90) days notice or less, without
payment of a termination fee or similar payment or (D) in which the Company has agreed to purchase
a minimum quantity of goods or services or has agreed to purchase goods or services exclusively
from a certain party;

               any Contract for the disposition of any significant portion of the assets or business of the
Company or any agreement for the acquisition, directly or indirectly, of the assets or business of
any other Person involving payment by or to the Company of more than an aggregate of $100,000;

               any Contract for any joint venture or partnership;

               any Contract granting a third party any license to or option on any Company Intellectual
Property other than in the Ordinary Course, or pursuant to which the Company has been granted by a
third party any license to any Intellectual Property which would reasonably be expected to require
payment in excess of $100,000 a year;

               any Contract (other than trade debt incurred in the Ordinary Course) under which the Company
has borrowed any money from, or issued any note, bond, debenture or other evidence of Indebtedness
to, any Person (other than the Company) or any note, bond, debenture or other evidence of
Indebtedness issued by the Company or any of its Affiliates to any Person (other than the Company);

               any Contract (including so-called take-or-pay or “keep well” agreements) under which (A) any
Person (including the Company) has, directly or indirectly, guaranteed Indebtedness, liabilities or
obligations of the Company or (B) the Company has, directly or indirectly, guaranteed Indebtedness,
liabilities or obligations of any Person (in each case other than endorsements for the purpose of
collection in the Ordinary Course);

               any Contract under which the Company has, directly or indirectly, made any advance, loan,
extension of credit or capital contribution to, or other investment in, any Person (other than the
Company) other than in the Ordinary Course;

               any Contract providing for indemnification of any Person by the Company, other than express
indemnities included in standard form sales or service contracts, or license agreements, entered
into by the Company in the Ordinary Course; or

11

 

               any Contract under which the consequences of a default or termination would reasonably be
expected to result in a Material Adverse Change to the Company or the Surviving Corporation.

          (b) Except as set forth in Section 2.13(b) of the Disclosure Schedule, each Material
Contract is in full force and effect, and is legal, valid, binding and enforceable against the
Company and each other party thereto in accordance with its terms, subject to Bankruptcy Laws and
Equitable Principles. True and complete copies of each of the Material Contract have been
delivered to Buyer. There is no material violation, breach or default under any Material Contract
by the Company or, to the knowledge of the Company, by any other party thereto, and, to the
knowledge of the Company, no event has occurred or condition exists that with the lapse of time or
the giving of notice or both would constitute a material default thereunder by the Company or any
other party thereto. No notice, waiver, consent or approval is required (or the lack of which
would give rise to a right of termination, cancellation or acceleration of, or entitle any party to
accelerate, whether after the giving of notice or lapse of time or both, any obligation under the
Material Contracts) under or relating to any Material Contract in connection with the execution,
delivery and performance of this Agreement or the consummation of the Merger or any of the other
transactions contemplated hereby. Immediately following the Effective Time, each Material Contract
will continue to be in full force and effect, and valid, binding and enforceable against the
Surviving Corporation and each other party thereto in accordance with its terms, subject to
Bankruptcy Laws and Equitable Principles.

     Section 2.14. Intellectual Property.

          (a) The Company has no Intellectual Property, other than any item that is solely Intellectual
Property pursuant to clause (iv) or (v) of the definition of Intellectual Property or Intellectual
Property licensed from Buyer.

          (b) The Company owns or possesses adequate licenses or other valid rights to use (in each
case, free and clear of any Liens (other than Permitted Exceptions (as defined below)) all Company
Intellectual Property used in connection with the business of the Company as currently conducted
and as conducted during the past two (2) years.

          (c) Except as set forth on Section 2.14(c) of the Disclosure Schedule, all Company
employees, and all contractors involved in the creation or use of Company Intellectual Property,
have signed nondisclosure and invention assignment agreements. The use by the Company of any
Company Intellectual Property owned by any other person is in accordance in all material respects
with any applicable license granted by such person (or any person authorized by such person)
pursuant to which the Company acquired the right to use such Company Intellectual Property.

          (d) Except as set forth on Section 2.14(d) of the Disclosure Schedule, the Company
does not pay to or receive any royalty from anyone with respect to any Company
Intellectual Property, nor has the Company licensed anyone to use any of the Company
Intellectual Property, other than in connection with the sale of services in the Ordinary Course or
pursuant to a license with Buyer.

12

 

          (e) The Company has not given or received any notice of any pending violation or infringement
of the rights of others with respect to, any Intellectual Property or with respect to any license
of the Company Intellectual Property.

          (f) The Company is not subject to any Judgment or settlement which restricts or impairs the
use of, any Company Intellectual Property. To the Company’s knowledge, no Company Intellectual
Property, and no services sold or contemplated for sale by the Company, violates or infringes upon
any Intellectual Property of any third party.

          (g) The Company has not entered into any consent, indemnification, forbearance to sue or
settlement agreement with respect to Intellectual Property and, to the Company’s knowledge, no
claims have been asserted by any Person with respect to the validity or enforceability of, or the
Company’s ownership of or right to use, the Company Intellectual Property and, to the Company’s
knowledge, there is no basis for any such claim.

          (h) The Company Intellectual Property constitutes all of the Intellectual Property needed,
along with Intellectual Property licensed or otherwise made available by Buyer to the Company,
necessary for the Company to conduct its business as currently conducted.

          (i) All trade secrets, confidential information or know-how of the Company and/or used by the
Company in its business have been maintained by the Company in all material respects in confidence
in accordance with the protection procedures customarily used by companies in the same industry as
the Company to protect rights of like importance.

     Section 2.15. Litigation. Except as set forth on Section 2.15 of the Disclosure
Schedule, there is no Legal Proceeding (as defined below) pending or, to the Company’s
knowledge, threatened against the Company or any of its Affiliates. There are no Judgments
outstanding against the Company or any of its properties or assets, including by or before any
Governmental Entity. There is no claim, demand or investigation pending or, to Company’s knowledge,
threatened against Company or any of its subsidiaries or any of their respective properties or
assets, including by or before any Governmental Entity, which (a) does or would reasonably be
expected to result in a Material Adverse Change to Company or (b) as of the date hereof, questions
the validity of this Agreement or any action to be taken by Buyer, the Company or Merger Sub in
connection with the consummation of the transactions contemplated hereby or could otherwise prevent
or delay the consummation of the Merger or any of the other transactions contemplated by this
Agreement.

     Section 2.16. Taxes.

          (a) All material Tax Returns required to be filed by or on behalf of the Company (including
any affiliated, combined, consolidated or unitary group) have been timely filed and all Taxes owed
by or on behalf of the Company (whether or not shown on such Tax Returns) have been timely paid.

          (b) The unpaid Taxes of the Company do not exceed the reserve for Taxes (rather than any
reserve for deferred Taxes to reflect book/tax timing differences) set forth on the face of the
Most Recent Balance Sheet (rather than any notes thereto), as adjusted through the Closing Date in
accordance with past custom and practice. Since the Most Recent Balance Sheet

13

 

Date, the Company
has not incurred any liability for Taxes arising from extraordinary gains or losses (within the
meaning of GAAP) or outside the Ordinary Course.

          (c) None of the Company’s assets: (i) is property required to be treated as owned by another
Person pursuant to former Section 168(f)(8) of the Code; (ii) is “tax-exempt use property” within
the meaning of Section 168(h) of the Code; or (iii) directly or indirectly secures any debt the
interest on which is excludable from gross income under Section 103(a) of the Code.

          (d) Section 2.16(d) of the Disclosure Schedule (i) lists all federal, state, local and
foreign income Tax Returns filed by or on behalf of the Company during the past six years, (ii)
indicates those Tax Returns that have been audited and (iii) indicates those Tax Returns that
currently are the subject of audit. All deficiencies asserted in writing by any taxing authority
for which the Company is liable have been paid in full. There are no actions, suits, proceedings,
audits, investigations or claims now proposed or pending against the Company concerning the Tax
liability of the Company. No issue has been raised in writing in any examination by any
Governmental Entity with respect to the Company which, by application of similar principles,
reasonably could be expected to result in a proposed deficiency or increase in Taxes for any other
period not so examined.

          (e) There are no outstanding agreements or waivers extending the statutory period of
limitation applicable to any Tax assessment or deficiency with respect to the Company and the
Company has not requested any extension of time within which to file any Tax Return, which Tax
Return has not yet been filed.

          (f) Except as set forth in Section 2.16(f) of the Disclosure Schedule, the Company has
withheld and paid all material Taxes required by Law to have been withheld and paid and has
complied in all material respects with all rules and regulations relating to the withholding or
remittance of Taxes (including, without limitation, employee-related Taxes).

          (g) The Company is not a party to any Contract that, individually or collectively, would give
rise to any payment (whether in cash or property) that would not be deductible pursuant to Sections
162(a)(1), 162(m), or 280G of the Code.

          (h) The Company will not be required to include any item of income in, or exclude any item of
deduction from, taxable income for any taxable period ending after the Closing Date as a result of
any: (i) adjustment pursuant to Section 481 of the Code associated with a change of accounting
method that is effective on or before the date of this Agreement; (ii) closing agreement or other
agreement with any Governmental Entity executed on or before the date of this Agreement; or (iii)
transaction entered into on or before the date of this Agreement and treated under the installment
method, long-term contract method, cash method, or open transaction method of accounting.

          (i) Since the Company’s formation, the Company has not constituted either a “distributing
corporation” or a “controlled corporation” (within the meaning of Section 355(a)(1)(A) of the Code)
in a distribution intended to qualify for tax-free treatment under Section 355(a) of the Code.

14

 

          (j) The Company is not a United States real property holding corporation within the meaning of
Section 897 of the Code.

          (k) Parent is not a “foreign person” within the meaning of Section 1445 of the Code.

          (l) Since the Company’s formation, no claim has ever been made in writing by an authority in a
jurisdiction where the Company does not file Tax Returns that the Company is or may be subject to
Tax in that jurisdiction.

          (m) The Company is not a party to any Tax allocation, indemnity or sharing Contract. The
Company does not have any liability for Taxes of any Person (i) under Treasury Regulation Section
1.1502-6 (other than with respect to Parent), (ii) as transferee or successor, (iii) by Contract,
or (iv) otherwise. The Company has not been a member of an “affiliated group” (as that term is
defined in the Code) filing a consolidated federal income Tax Return other than a group the common
parent of which was Parent.

          (n) There are no Liens for Taxes with respect to the Company’s assets, except for Liens for
Taxes not yet due and payable.

          (o) The Company is not subject to any private letter ruling or similar ruling issued by any
Governmental Entity.

     Section 2.17. Insurance. The insurance policies owned and maintained by the Company
and the coverage amounts thereunder are listed on Section 2.17 of the Disclosure Schedule.
All such policies are in full force and effect, all premiums due and payable thereon have been
paid. To the Company’s knowledge, the Company is not liable for retroactive premiums or similar
payments related thereto and the Company is in compliance with the terms of such policies. There
is no claim pending under any such policy as to which coverage has been questioned, denied or
disputed by the underwriter of such policy. To the knowledge of the Company, there has been no
notice of cancellation or termination (or any other threatened termination) of, or premium increase
with respect to, any such policy. Each such policy will continue to be enforceable and in full
force and effect immediately following the Effective Time in accordance with the terms thereof as
in effect as of the date hereof.

     Section 2.18. Benefit Plans.

          (a) Section 2.18(a)(i) of the Disclosure Schedule contains a list and brief
description of all Benefit Plans (as defined below) established, sponsored or maintained by Parent,
whether or nor contributed to by the Company. Section 2.18(a)(ii) of the Disclosure
Schedule contains a list and brief description of all Benefit Plans established, sponsored or
maintained by the Company, whether or not contributed to by Parent. Except as set forth on
Section 2.18(a)(ii) of the Disclosure Schedule, the Company has not established or
maintained and has not been and is not obligated to make any contribution to or under or otherwise
participate in any Benefit Plan, nor has the Company committed or proposed to do so.

          (b) Except as set forth in Section 2.18(b)(i) of the Disclosure Schedule, each Benefit
Plan listed in Section 2.18(a)(i) of the Disclosure Schedule has been operated and

15

 

administered materially in accordance with its material terms and is in material compliance with
applicable Law (including but not limited to ERISA and the Code). Except as set forth in
Section 2.18(b)(ii) of the Disclosure Schedule, each Benefit Plan listed in Section
2.18(a)(ii) of the Disclosure Schedule has been operated and administered materially in
accordance with its terms and is in compliance with applicable Law (including but not limited to
ERISA and the Code). Except as set forth in Section 2.18(b)(ii) of the Disclosure
Schedule, there are no lawsuits, actions, termination proceedings or other proceedings pending
or, to the knowledge of the Company or Parent, threatened against or involving any Benefit Plan
that, if adversely determined, would reasonably be anticipated to result in any material liability
or obligation on the part of the Company and there are no investigations by any Governmental Entity
or other claims (except claims for benefits payable in the normal operation of the Benefit Plans)
pending or, to the knowledge of the Company, threatened against or involving any Benefit Plan.
Except as set forth in Section 2.18(b)(ii) of the Disclosure Schedule, the Company does not
have any liability to the IRS, to the knowledge of the Company or Parent, with respect to any
Benefit Plan, including any liability imposed under Chapter 43 of the Code.

          (c) Except as set forth in Section 2.18(b)(i) or Section 2.18(b)(ii) of the Disclosure
Schedule, no transaction prohibited by Section 406 of ERISA nor any “prohibited transaction”
(as defined in Section 4975 of the Code) that is not covered by an applicable exemption has
occurred with respect to any Benefit Plan. No defined benefit Pension Plan has been terminated and
there have been no “reportable events” (as defined in Section 4043 of ERISA) with respect thereto.
No Pension Plan is a single or multiemployer plan (as defined in Section 3(37) of ERISA) or subject
to Title IV of ERISA.

          (d) The Company has not offered to provide health or life insurance coverage to any
individual, or to the family members of any individual, for any period extending beyond the
termination of the individual’s employment by the Company, except to the extent required by the
health care continuation provisions of ERISA and the Code or similar state benefit continuation
Laws. Each Benefit Plan that is a group health plan, as such term is defined in Section 5000(b)(1)
of the Code, complies in all respects with Sections 601 et seq. and 701 et seq. of ERISA and
Section 4980B and Subtitle K of the Code.

          (e) Each Benefit Plan (including any such plan covering retirees or other former employees)
may be discontinued or terminated without liability on the part of the Company before, on or at any
time after the Effective Time.

          (f) Except as set forth in Section 6.9, neither the execution and delivery of this Agreement,
nor the consummation of the Merger or the other transactions contemplated by this Agreement will
result in the payment, vesting or acceleration of any bonus, stock option or other equity-based
award, retirement, severance, job security or similar benefit or any enhanced benefit to any Person
for which the Company is or could become liable, or the loss of any deduction to the Company under
Section 280G of the Code.

          (g) Parent specifically retains all liabilities and obligations associated with any Benefit
Plan set forth in Section 2.18(a)(i) of the Disclosure Schedule and the TSI 401(k) Plan.
With the exception of the TSI 401(k) Plan, the Company specifically retains all liabilities and
obligations associated with any Benefit Plans set forth in Section 2.18(a)(ii) of the

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Disclosure Schedule, which continues to be maintained by the Company on and after the Closing
Date. Except as set forth in the immediately preceding sentence, Parent specifically retains all
liabilities and obligations associated with any other employee benefit plan, program or arrangement
whether or not subject to ERISA, maintained, sponsored or contributed to by Parent or any group,
trade, business or entity which together with Parent is treated as a single employer under Section
414 of the Code or Section 4001(a)(14) of ERISA.

     Section 2.19. Employee and Labor Matters.

          (a) There is not, and since the Company’s formation there has not been, any labor strike,
dispute, work stoppage, slowdown or lockout pending, or, to the knowledge of the Company,
threatened, against the Company. The Company is not a party to any collective bargaining or other
labor Contracts with respect to any Company Personnel and, to the knowledge of the Company, no
union organizational campaign or petition for certification is in progress with respect to the
Company Personnel and no question concerning representation exists respecting such Company
Personnel. The Company is not engaged in any unfair labor practice, and there is no unfair labor
practice charge or complaint against the Company pending, or, to the knowledge of the Company,
threatened, before the National Labor Relations Board. There are no pending, or, to the knowledge
of the Company, threatened, union grievances against the Company. There are no pending, or, to the
knowledge of the Company, threatened, charges against the Company or any current or former Company
Personnel before the Equal Employment Opportunity Commission or any other Governmental Entity
responsible for the prevention of unlawful employment practices. Since the Company’s formation,
the Company has not received notice of the intent of any Governmental Entity responsible for the
enforcement of labor or employment Laws to conduct an investigation of the Company and, to the
knowledge of the Company, no such investigation is in progress.

          (b) Except as set forth in Section 2.19(b) of the Disclosure Schedule, the Company has
complied with all applicable Laws relating to employment and governing payment of minimum wages and
overtime rates, the withholding and payment of Taxes from compensation of employees and the payment
of premiums and/or benefits under applicable worker compensation Laws.

          (c) To the knowledge of the Company, no officer, director or employee of the Company is a
party to or bound by any Contract, license, covenant or Contract of any nature, or subject to any
Judgment of any Governmental Entity, that may interfere with the use of such Person’s efforts to
promote the interests of the Company, conflict with the business of the Company or the Merger and
the other transactions contemplated hereby, or that could reasonably be expected to result in a
Material Adverse Change. To the knowledge of the Company, no activity of any employee of the
Company as or while an employee of the Company has caused a violation of any employment Contract,
confidentiality agreement, Patent disclosure agreement, or other Contract. To the knowledge of the
Company, neither the execution and delivery of this Agreement, nor the conduct of the business of
the Company by the Company Personnel, will
conflict with or result in a breach of the terms, conditions or provisions of, or constitute a
default (with or without notice or lapse of time or both) under, or give rise to a right of, or
result in, termination, cancellation or acceleration of any obligation or to a loss of a material
benefit under,

17

 

or give rise to any increased, additional, accelerated or guaranteed rights or
entitlements under any covenant or instrument under which any such employees are now employed.

          (d) Parent or the Company has heretofore provided to Buyer a true and complete list of the
names, positions and rates of compensation of all directors, officers, employees and consultants of
the Company, as of the date hereof, showing each such person’s name, position(s), and annual
remuneration, bonuses and fringe benefits for the current fiscal year and the most recently
completed fiscal year. Except as indicated on Section 2.19(d) of the Disclosure Schedule
(i) all employees are employed on an “at-will” basis and their employment can be terminated at any
time for any reason without any amounts being owed to such individual other than with respect to
wages accrued before the termination, (ii) all contractor or other service provider relationships
can be terminated at any time for any reason without any amounts being owed to such individual
other than with respect to compensation or payments accrued before the termination and (iii) no
employee is on disability or other leave of absence. The Company has complied, in all material
respects, with all immigration and naturalization Laws governing the employment by it of personnel
by U.S. companies and the employment of non-U.S. nationals by it in the United States, including
the Immigration and Nationality Act 8 U.S.C. Sections 1101 et seq. and its implementing
regulations. Except as set forth on Section 2.19(d) of the Disclosure Schedule, the
Company has not sponsored any employee for, or otherwise engaged any employee working pursuant to,
a non-immigrant visa.

          (e) As of the date hereof, the Company has not been notified by any of its employees that such
employee or any other employee intends to terminate his or her employment with the Company,
including in connection with or as a result, in part or in whole, of the transactions contemplated
hereby or any other sale of the Company.

     Section 2.20. Environmental Matters. The lessor of any premises leased by the Company
has not notified the Company in writing, and the Company does not otherwise have knowledge with
respect to any of such leased premises, that there exists any noncompliance with any Environmental
Law that would make such leased premises unavailable to be used by the Company in the conduct of
its business as currently conducted on such premises or that would insofar as can be reasonably
foreseen pose a material health hazard for the Company’s employees.

     Section 2.21. Transactions with Affiliates. Section 2.21 of the Disclosure
Schedule describes any transaction, since September 30, 2007, between the Company, on the one
hand, and Parent or an Affiliate (other than the Company) of Parent, on the other hand, other than
any employment Contract, Contract not to compete with the Company, Contract to maintain the
confidential information of the Company, Contract assigning intellectual property rights to the
Company, or other Agreement listed on Section 2.13(a) of the Disclosure Schedule. Except
as set forth on Section 2.21 of the Disclosure Schedule or Section 2.13(a) of the
Disclosure Schedule, no Affiliate of the Company (a) owns or has any interest in any property
(real or personal, tangible or intangible), Company Intellectual Property or Contract used in or
pertaining
to the business of, the Company, (b) has notified the Company of any claim or cause of action
against the Company or (c) owes any money to, or is owed any money by, the Company.

18

 

     Section 2.22. Accounts; Powers of Attorney; Officers and Directors. Section 2.22
of the Disclosure Schedule sets forth (a) a true and complete list of all bank and savings
accounts, certificates of deposit and safe deposit boxes of the Company, identifying with respect
to each any Person authorized to sign thereon, (b) true and complete copies of all corporate
borrowing, depository and transfer resolutions, identifying with respect to each any Person
entitled to act thereunder, (c) a true and complete list of all powers of attorney granted by the
Company, identifying with respect to each any Person authorized to act thereunder and (d) a true
and complete list of all officers and directors of the Company.

     Section 2.23. Brokers. The Company has not employed or entered into any Contract with
any investment banker, broker, finder, consultant or intermediary in connection with the Merger or
the other transactions contemplated by this Agreement.

     Section 2.24. Certain Business Practices. Neither the Company nor, to the Company’s
knowledge, any directors, officers, agents or employees of the Company, has (a) used any funds for
unlawful contributions, gifts, entertainment or other unlawful expenses related to political
activity, (b) made any unlawful payment to foreign or domestic government officials or employees or
to foreign or domestic political parties or campaigns or violated any provision of the Foreign
Corrupt Practices Act of 1977 or (c) made any payment which constitutes criminal bribery under
applicable Law.

     Section 2.25. No Former Business. Except as set forth on Section 2.25 of the
Disclosure Schedule, the Company has not owned or operated any former business, alone or with
any other Person.

     Section 2.26. Additional Tax Matters.

          (a) Neither the Company nor any of its Affiliates, knows of any fact or has taken or agreed to
take any action, failed to take any action or is aware of any fact or circumstance, that could
reasonably be expected to prevent the Merger from constituting a Tax-Free Reorganization (as
defined below).

          (b) Section 2.26(b) of the Disclosure Schedule contains a true, complete and correct
list of all Persons who, to the knowledge of the Company, may be deemed to be Affiliates of the
Company, including all directors and executive officers of the Company as of the date hereof.

     Section 2.27. Disclosure.

     No representation or warranty of the Company contained in this Agreement or any other
agreement or instrument furnished by the Company pursuant to this Agreement, and no statement
contained in any document, certificate or schedule furnished or to be furnished by or on behalf of
the Company to Buyer or any of its Representatives pursuant to this Agreement, contains or will
contain any untrue statement of a material fact, or omits or will omit to state any
material fact necessary, in light of the circumstances under which it was or will be made, in
order to make the statements herein or therein not misleading.

19

 

ARTICLE 3

ADDITIONAL REPRESENTATIONS AND WARRANTIES OF PARENT

     Parent hereby represents and warrants to Buyer and Merger Sub as follows:

     Section 3.1. Power and Authority; Binding Agreement. Parent has all requisite
corporate power and authority to execute and deliver this Agreement and to perform its obligations
hereunder. The execution and delivery by Parent of this Agreement has been duly authorized by all
necessary corporate action on the part of Parent, and no other proceedings on the part of Parent
are necessary to authorize this Agreement. This Agreement has been duly executed and delivered by
Parent and, assuming the due execution of this Agreement by the other Parties, constitutes a valid
and binding obligation of Parent, enforceable against Parent in accordance with its terms.

     Section 3.2. Non Contravention.

          (a) The execution and delivery by Parent of this Agreement and the compliance by Parent with
the provisions of this Agreement do not and will not result in any violation or breach of, or
default (with or without notice or lapse of time or both) under, or give rise to a right of, or
result in, termination, cancellation or acceleration of any obligation, or result in the creation
of any Lien, in or upon any of the properties or assets of Parent under any provision of (i) the
Constitutive Documents of Parent, (ii) or, except as would not reasonably be expected to result in
a Material Adverse Change to Parent, any loan or credit agreement, bond, debenture, note, mortgage,
indenture, guarantee, lease or other Contract to which Parent is a party or bound by or its
properties or assets are bound by or subject to or otherwise under which Parent has rights or
benefits, or (iii) except as would not reasonably be expected to result in a Material Adverse
Change to Parent, any Law or Judgment specifically naming Parent, applicable to Parent, or any of
its properties or assets.

          (b) Except as set forth in Section 3.2(b) of the Disclosure Schedule, no consent,
approval, order or authorization of, registration, declaration or filing with, or notice to, any
Governmental Entity is required by or with respect to the Company in connection with the execution
and delivery by Parent of this Agreement or the compliance by Parent with the provisions of this
Agreement, except such consents, approvals, orders, authorizations, registrations, declarations,
filings and notices, the failure of which to be obtained or made individually or in the aggregate
would not impair in any material respect the ability of the Parent to perform its obligations under
this Agreement or cause a Material Adverse Change to Parent.

     Section 3.3. Title to Securities. As of the date of this Agreement: (a) Parent owns
of record and beneficially the number of outstanding shares of Company Common Stock set forth on
Section 3.3(a) of the Disclosure Schedule, being all of the outstanding shares of Capital
Stock of the Company, and (b) Parent does not directly or indirectly own any other securities of
the Company, or any option, warrant or other right to acquire (by purchase, conversion or
otherwise)
any shares of Capital Stock or other securities of the Company, other than the shares of
Common Stock set forth on Section 3.3(a) of the Disclosure Schedule.

20

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES OF BUYER AND MERGER SUB

     Buyer and Merger Sub, jointly and severally, represent and warrant to Parent as follows, as of
the date hereof and as of the Closing Date:

     Section 4.1. Organization and Standing; Outstanding Shares. Each of Buyer and Merger
Sub is a corporation duly organized, validly existing and in good standing under the Laws of its
jurisdiction of incorporation. Buyer has all requisite corporation power and authority to carry on
its business as now being conducted. Buyer has delivered to the Company complete and correct
copies of Merger Sub’s and Buyer’s Constitutive Documents, as amended. For the purpose of
providing comfort to Parent that the shares of Buyer Common Stock it will receive as Closing
Consideration do not constitute more than 9.95% of the total outstanding shares of Buyer Common
Stock at such time, Buyer represents and warrants that as of the date of this Agreement it has
38,325,228 shares of Capital Stock outstanding, consisting of 28,325,228 shares of Buyer Common
Stock and 10,000,000 shares of its Series C Convertible Preferred Stock, $0.01 par value per share,
convertible into 10,000,000 shares of Buyer Common Stock without regard to any limit on conversion
that may be applicable.

     Section 4.2. Power and Authority; Binding Agreement. Each of Buyer and Merger Sub has
all requisite corporate power and authority to execute and deliver this Agreement, to consummate
the Merger and the other transactions contemplated hereby and to perform its obligations hereunder.
The execution and delivery by Buyer and Merger Sub of this Agreement and the consummation by Buyer
and Merger Sub of the Merger and the other transactions contemplated hereby, have been duly
authorized by all necessary corporate action on the part of Buyer and Merger Sub, and no other
proceedings on the part of Buyer or Merger Sub are necessary to authorize this Agreement or to
consummate the Merger and the other transactions contemplated hereby. This Agreement has been duly
executed and delivered by Buyer and Merger Sub and, assuming the due execution of this Agreement by
the Company and Parent, constitutes a valid and binding obligation of Buyer and Merger Sub,
enforceable against Buyer and Merger Sub in accordance with its terms.

     Section 4.3. Non Contravention.

          (a) The execution and delivery of this Agreement, the consummation of the Merger and the other
transactions contemplated by this Agreement and the compliance with the provisions of this
Agreement by each of Merger Sub and Buyer do not and will not result in any violation or breach of,
or default (with or without notice or lapse of time or both) under, or give rise to a right of, or
result in, termination, cancellation or acceleration of any obligation, or result in the creation
of any Lien, in or upon any of the properties or assets of Buyer, the Merger Sub or, following the
Effective Time, the Surviving Corporation under any provision of (i) the Constitutive Documents of
Merger Sub or Buyer or, following the Effective Time, the Surviving Corporation, (ii) or, except as
would not reasonably be expected to result in a Material Adverse Change to Merger Sub or Buyer, any
loan or credit agreement, bond, debenture, note, mortgage,
indenture, guarantee, lease or other Contract to which either of them is a party or bound by
or either of their respective properties or assets are bound by or subject to or otherwise under
which either of Buyer or Merger Sub has rights or benefits, or which would be applicable to the

21

 

Surviving Corporation through Buyer or Merger Sub, following the Effective Time, or (iii) except as
would not reasonably be expected to result in a Material Adverse Change to Buyer, Merger Sub or,
following the Effective Time, the Surviving Corporation, any Law or Judgment specifically naming
Buyer or Merger Sub, in each case, applicable to Buyer or Merger Sub or, following the Effective
Time, the Surviving Corporation, or any of their respective properties or assets.

          (b) No consent, approval, order or authorization of, registration, declaration or filing with,
or notice to, any Governmental Entity is required by or with respect to Buyer or Merger Sub in
connection with the execution and delivery by either of them of this Agreement, the consummation by
Buyer and Merger Sub of the Merger and the other transactions contemplated hereby or the compliance
by Buyer and Merger Sub with the provisions of this Agreement, except for (i) the filing of the
Colorado Statement of Merger with the Secretary of State of the State of Colorado and appropriate
documents with the relevant authorities of other states in which the Company is qualified to do
business, and (ii) such other consents, approvals, orders, authorizations, registrations,
declarations, filings and notices, the failure of which to be obtained or made individually or in
the aggregate would not impair in any material respect the ability of each of Buyer and Merger Sub
to perform its obligations under this Agreement or prevent or materially impede or delay the
consummation of the Merger or any of the other transactions contemplated hereby or cause a Material
Adverse Change to Buyer.

          (c) All of the shares of Buyer Common Stock constituting Merger Consideration, after
consummation of the Merger and when issued, will be duly authorized, validly issued, fully paid,
non-assessable, free of all preemptive rights, and was or will be issued in compliance in all
material respects with all applicable federal corporate and securities Laws. Buyer is not a party
to or bound by any, and there are no, contracts containing preemptive rights or agreements,
arrangements or understandings to issue preemptive rights with respect to the issuance or sale of
Capital Stock of Buyer that have not been waived.

     Section 4.4. No Interim Operations of Merger Sub. Merger Sub was formed solely for
the purpose of engaging in the transactions contemplated by this Agreement and has engaged in no
business other than in connection with the transactions contemplated by this Agreement.

     Section 4.5. SEC Filings; Financial Statements. Buyer has filed with the SEC and has
heretofore made available to the Company true and complete copies of, all forms, reports,
schedules, statements, exhibits and other documents required to be filed by it and its subsidiaries
on or since June 30, 2007 under the Securities Act (as defined below) and the Exchange Act (as
defined below) (collectively, the “Buyer SEC Documents”), and will promptly make available to the
Company all such forms, reports, schedules, statements, exhibits and other documents as are filed
prior to the Closing. As of their respective dates or, if amended, as of the date of the last such
amendment, the Buyer SEC Documents and any forms, reports, schedules, statements, exhibits and
other documents Buyer may file with the SEC subsequent to the date hereof until the Closing,
including, without limitation, any financial statements or schedules included therein, complied or
will comply in all material respects with the applicable requirements of the
Securities Act and the Exchange Act, and did not and will not contain any untrue statement of
a material fact or omit to state a material fact required to be stated therein or necessary in
order to make the statements therein, in light of the circumstances under which they were or will
be

22

 

made, not misleading. The financial statements of Buyer and its subsidiaries, including all
related notes and schedules, contained in Buyer SEC Documents complied in all material respects
with applicable accounting requirements and the published rules and regulations of the SEC with
respect thereto, were prepared in accordance with GAAP applied on a consistent basis during the
periods involved (except as may be indicated in the notes thereto), and fairly present (on a
consolidated basis, if applicable) (a) the financial position of Buyer, as of the dates thereof,
and (b) its results of operations, cash flows and changes in stockholders’ equity for the periods
then ended (subject, in the case of the unaudited interim financial statements, to normal year-end
adjustments).

     Section 4.6. Undisclosed Liabilities. Buyer has no liabilities or obligations of any
nature (whether known or unknown, absolute or contingent, liquidated, due, accrued or not, or
otherwise), except for such liabilities and obligations, (a) to the extent shown in Buyer SEC
Documents or shown on Schedule 4.6, (b) that are immaterial and are incurred in the
Ordinary Course since the most recent of the Buyer SEC Documents or (c) that are not required to be
reflected on a balance sheet prepared in accordance with GAAP.

     Section 4.7. Litigation. Except as disclosed in any of the Buyer SEC Documents filed
after June 30, 2007 but prior to the date of this Agreement, there is no claim, demand or
investigation pending or, to Buyer’s knowledge, threatened against Buyer or any of its subsidiaries
or any of their respective properties or assets, including by or before any Governmental Entity,
which (a) does or would reasonably be expected to result in a Material Adverse Change to Buyer or
(b) as of the date hereof, questions the validity of this Agreement or any action to be taken by
Buyer, the Company or Merger Sub in connection with the consummation of the transactions
contemplated hereby or could otherwise prevent or delay the consummation of the Merger or
transactions contemplated by this Agreement.

     Section 4.8. No Vote. No vote or approval of the holders of any class of securities
of Buyer is necessary to approve this Agreement, the Merger or the transactions contemplated
hereby, including any consent of the holders of Buyer as may be required by the listing
requirements of the NASDAQ.

     Section 4.9. Additional Tax Matters. Neither Buyer nor any of its Affiliates, knows
of any fact or has taken or agreed to take any action, failed to take any action or is aware of any
fact or circumstance, that could reasonably be expected to prevent the Merger from constituting a
Tax-Free Reorganization.

     Section 4.10. Disclosure. No representation or warranty of Buyer contained in this
Agreement or any other agreement or instrument furnished by Buyer pursuant to this Agreement, and
no statement contained in any document, certificate or schedule furnished or to be furnished by or
on behalf of Buyer to Parent or the Company or any of their Representatives pursuant to this
Agreement, and no information included in any disclosure to the stockholders of Buyer relating to
the Merger, this Agreement or the other transactions contemplated hereby, including without
limitation the Buyer SEC Documents (as of the date of such disclosure), contains or will
contain any untrue statement of a material fact, or omits or will omit to state any material
fact necessary, in light of the circumstances under which it was or will be made, in order to make
the statements herein or therein not misleading.

23

 

ARTICLE 5

CONDITIONS PRECEDENT

     Section 5.1. Conditions to Each Party’s Obligation. The
respective obligation of each Party to effect the Merger is subject to the satisfaction or waiver
on or prior to the Effective Time of the following conditions, any or all of which may be waived in
whole or in part by the Party being benefited thereby, to the extent permitted by applicable Law:

          (a) Statement of Merger. The Colorado Statement of Merger shall have been duly
executed and delivered by Merger Sub and the Company and filed with and accepted by the Secretary
of State of the State of Colorado.

          (b) No Injunction or Legal Restraint. No temporary restraining order, preliminary or
permanent injunction or other order or decree issued by any court of competent jurisdiction or
other legal restraint or prohibition (collectively, “Legal Restraints”) or Law which has the effect
of preventing the consummation of the Merger shall be in effect. There shall not be pending or
threatened by any Governmental Entity any claim, suit, action or proceeding (or by any other Person
any claim, suit, action or proceeding which has a reasonable likelihood of success), challenging or
seeking to restrain, prohibit, prevent, enjoin, alter or delay the Merger or any of the other
transactions contemplated by the this Agreement.

     Section 5.2. Conditions to Buyer’s and Merger Sub’s Obligations. The obligations of
each of Buyer and Merger Sub to effect the Merger are subject to the satisfaction (or express
written waiver by Buyer) on or prior to the Closing Date of the following conditions:

          (a) No Material Adverse Change. Since the Most Recent Yearend Financials Date, there
shall not have been a Material Adverse Change to the Company.

          (b) Representations and Warranties of the Company and Parent. The representations and
warranties of the Company and Parent set forth in this Agreement that are qualified as to
materiality (including in the definition of Material Adverse Change) shall be true and correct, and
all other representations and warranties of the Company set forth in this Agreement that are not so
qualified shall be true and correct in all material respects, in each case as of the date of this
Agreement and as of the Closing Date with the same effect as though made as of the Closing Date,
except that the truthfulness and correctness of representations and warranties that by their terms
speak as of a specified date will be determined as of such date.

          (c) Covenants and Agreements.

               The Company shall have performed or complied with in all material respects all covenants,
agreements and obligations required by this Agreement to be performed or complied with by the
Company on or before the Closing Date.

               Parent shall have performed or complied in all material respects with all covenants,
agreements and obligations required by this Agreement and the Investment Representation Letter (as
defined below) to be performed or complied with by it on or before the Closing Date.

          (d) Compliance Certificate. The Company and the Parent shall have delivered to Buyer
a certificate, dated the Closing Date and signed by the chief executive officer and chief

24

 

financial
officer of Parent (but without personal liability therefor) certifying as to the fulfillment of the
conditions specified in Sections 5.2(a) and (b).

          (e) Governmental Consents and Approvals. Buyer shall have received evidence, in form
and substance reasonably satisfactory to it, that all consents of Governmental Entities required to
be obtained by the Company or Parent in connection with the Merger, this Agreement and the other
transactions contemplated hereby, have been obtained or made, and are in full force and effect.

          (f) Contractual Consents and Approvals. Buyer shall have received evidence, in form
and substance reasonably satisfactory to it, that the Company has obtained all consents and
approvals of third parties set forth on Schedule 5.2(f).

          (g) Opinion of Parent and Company Counsel. Buyer shall have received from Goodwin
Procter LLP, counsel to Parent, an opinion in substantially the form of Exhibit C-1
attached hereto, and the opinion of Sherman & Howard LLP, counsel to the Company, an opinion in
substantially the form of Exhibit C-2 attached hereto, in each case addressed to Buyer and
dated the Closing Date.

          (h) Resignations. Buyer shall have received copies of the resignations, effective as
of the Effective Time, of each director of the Company (other than any such resignations which
Buyer designates, by written notice to the Company, as unnecessary).

          (i) Parent Non-Competition Agreement. At or prior to Closing, Parent shall have duly
executed and delivered to Buyer a non-competition agreement in substantially the form of
Exhibit D attached hereto (the “Non-Competition Agreement”), which agreement shall be in
full force and effect.

          (j) Investment Representation Letter. Parent shall have duly executed and delivered
to Buyer an Investment Representation Letter in substantially the form of Exhibit E
attached hereto (the “Investment Representation Letter”).

          (k) Payments of Accounts Receivable. At or prior to the Closing, except as set forth
on Schedule 5.2(k), all accounts receivable of the Company from Parent and Parent’s
Affiliates, if any, shall be been paid in full, whether or not then due and payable, subject to
Section 6.3(c).

          (l) Agreements with Parent. At or prior to the Closing, the agreements set forth on
Schedule 5.2(l) between Parent and the Company shall have been terminated without payment
of any consideration by the Company, and there shall be no obligations or liabilities of the
Company or, following the Effective Time, the Surviving Corporation with respect thereto.

          (m) Transition Services Agreement. At or prior to the Closing, Parent shall have duly
executed and delivered to Buyer a Transition Services Agreement in substantially the form of
Exhibit F attached hereto (the “Transition Services Agreement”), which agreement shall be
in full force and effect.

25

 

          (n) Escrow Agreement. Parent and the Escrow Agent and shall have duly executed and
delivered to Buyer a copy of a Escrow Agreement, in substantially the form of Exhibit G
(the “Escrow Agreement”), which Escrow Agreement shall be in full force and effect.

          (o) Employment Arrangement. At or prior to the Closing, Julie Smith shall have entered
into an employment arrangement with Buyer, to be effective as of and commence on the date of the
Closing.

          (p) Other Documentation. Buyer and counsel to Buyer shall have received such other
certificates and other documentation (including certificates of good standing of the Company in its
jurisdiction of organization and the various other jurisdictions in which it is qualified,
certified charter documents, certificates as to the incumbency of officers and the adoption of
authorizing resolutions) from the Company as they shall have reasonably requested and as is
customary with respect to the Merger and the other transactions contemplated by this Agreement.

          (p) FIRPTA. At or prior to Closing, the Company shall have delivered to Buyer an
affidavit, meeting the requirements of Section 1445(b)(3) of the Code, certifying that either: (i)
the Company is not and has not been a United States real property holding corporation (within the
meaning of Section 897 of the Code) during the period described in Section 897(c)(1)(A)(ii) of the
Code; or (ii) as of the Closing Date, interests in the Company are not United States real property
interests by reason of Section 897(c)(1)(B) of the Code.

     Section 5.3. Conditions to Parent’s and the Company’s Obligations. The obligation of
the Company to effect the Merger is subject to the satisfaction (or express written waiver by
Parent) on or prior to the Closing Date of the following conditions:

          (a) Representations and Warranties. The representations and warranties of Buyer and
Merger Sub set forth in this Agreement that are qualified as to materiality (including in the
definition of Material Adverse Change) shall be true and correct, and all other representations and
warranties of Buyer and Merger Sub set forth in this Agreement that are not so qualified shall be
true and correct in all material respects, in each case as of the date of this Agreement and as of
the Closing Date with the same effect as though made as of the Closing Date, except that the
accuracy of representations and warranties that by their terms speak as of a specified date will be
determined as of such date.

          (b) Covenants and Agreements. Buyer and Merger Sub shall have performed or complied
with in all material respects all covenants, agreements and obligations required by this Agreement
to be performed or complied with by them on or before the Closing Date.

          (c) Compliance Certificate. Parent shall have received from Buyer a certificate,
dated the Closing Date and signed by the chief executive officer and chief financial
officer of Buyer (but without personal liability therefor) certifying as to the fulfillment of
the conditions specified in Sections 5.3(a) and (b).

          (d) Governmental Consents and Approvals. Parent shall have received evidence, in form
and substance reasonably satisfactory to it, that all consents of Governmental Entities required to
be obtained by Buyer or Merger Sub in connection with the Merger, this

26

 

Agreement and the other
transactions contemplated hereby, have been obtained or made, and are in full force and effect.

          (e) Opinion of Buyer’s Counsel. Parent shall have received from Mintz Levin, Cohn,
Ferris, Glovsky and Popeo, P.C., counsel to Buyer and Merger Sub, an opinion in substantially the
form of Exhibit H, addressed to the Company and dated the Closing Date; provided that
Buyer, in satisfaction of such condition, deliver separate opinions of Mintz Levin, Cohn, Ferris,
Glovsky and Popeo, P.C., as counsel to Buyer, and Hogan & Hartson LLP, as counsel to Merger Sub, to
the same effect as Exhibit H.

          (f) Escrow Agreement. Buyer and the Escrow Agent and shall have duly executed and
delivered to Parent a copy of a Escrow Agreement, which Escrow Agreement shall be in full force and
effect.

          (g) Registration Rights Agreement. Buyer shall have duly executed and delivered to
Parent a copy of a Registration Rights Agreement, in substantially the form of Exhibit I
(the “Registration Rights Agreement”), which Registration Rights Agreement shall be in full force
and effect.

          (h) Other Documentation. The Company and counsel to the Company shall have received
such other certificates and other documentation (including certificates of good standing of the
Company in its jurisdiction of organization and the various other jurisdictions in which it is
qualified, certified charter documents, certificates as to the incumbency of officers and the
adoption of authorizing resolutions) from Buyer and Merger Sub as they shall have reasonably
requested and as is customary with respect to the Merger and the other transactions contemplated by
this Agreement.

ARTICLE 6

CERTAIN COVENANTS

     Section 6.1. Conduct of Business.

     Except with the prior written consent of Buyer or, as expressly permitted by the terms of this
Agreement from the date hereof to the Closing, the Company shall (i) conduct its businesses in the
Ordinary Course, (ii) make commercially reasonable efforts consistent with past practices to keep
its physical assets in good working condition, to preserve, maintain the value of, renew, extend
and keep in full force and effect all Company Intellectual Property, to keep available the services
of its current officers and employees and to preserve the Company’s relationships with lenders,
creditors, lessors, lessees, licensors, licensees, officers, employees, contractors, distributors,
developers, vendors, clients, customers, suppliers or other Persons having a material business
relationship with the Company and (iii) comply in all material respects with all applicable Laws
and Judgments. Without limiting the generality of the foregoing, except as
contemplated by this Agreement or the transactions to be consummated in connection therewith,
the Company shall not, without the prior written consent of Buyer, not to be unreasonably withheld
or delayed:

          (a) amend its Constitutive Documents;

27

 

          (b) declare, set aside or pay any dividend on, or make any other distribution (whether in
cash, stock or property) in respect of, any of Company Capital Stock to holders of Company Common
Stock;

          (c) split, combine or reclassify any Capital Stock, or issue or authorize the issuance of any
other securities in respect of, in lieu of or in substitution for shares of Company Common Stock;

          (d) issue, deliver or sell, or pledge or otherwise encumber, any shares of Capital Stock, or
any securities convertible into, or exchangeable for, or any options, warrants, calls or rights to
acquire or receive, any such shares, interests or other securities or any stock appreciation
rights, “phantom” or “shadow” stock awards or other rights that are linked in any way to the price
of Company Common Stock or the value of the Company or any part thereof, other than as otherwise
herein contemplated to Buyer in connection with the Merger;

          (e) repurchase, prepay, create, incur or assume any Indebtedness (including obligations in
respect of capital leases), issue or sell, or amend, modify or change any term of, any debt
securities or options, warrants, calls or other rights to acquire any debt securities of the
Company, assume, guarantee, endorse or otherwise become liable or responsible (whether directly,
contingently or otherwise) for any Indebtedness of another Person, make any loans, advances or
capital contributions to, or investments in, any Person other than the Company, enter into any
“keep well” or other Contract to maintain any financial statement condition of another Person, or
enter into any Contract having the economic effect of any of the foregoing, other than in each case
with respect to Indebtedness that matured or became due and payable or with respect to liabilities
or obligations arising or Indebtedness incurred in the Ordinary Course;

          (f) sell, license, mortgage or otherwise encumber or subject to any Lien other than a
Permitted Lien, or otherwise dispose of any properties or assets which are material, individually
or in the aggregate, to the Company, other than in the Ordinary Course;

          (g) acquire or agree to acquire (i) by merging or consolidating with, or by purchasing all or
a substantial portion of the assets of, or by purchasing all or a substantial portion of the
Capital Stock of, or by any other manner, any business or any other Person or any division thereof,
or (ii) any assets, other than in the Ordinary Course, that are material, individually or in the
aggregate, to the Company;

          (h) change its fiscal year, revalue any of its material assets or make any material changes in
financial or Tax accounting methods, principles, practices or policies, except as required by GAAP
or applicable Law, or make or change any material Tax election relating to the Company; file any
amended Tax Return, enter into any closing agreement, settle any Tax claim or assessment, surrender
any claim to a refund of Taxes or consent to any extension or waiver of the limitations period for
assessing any Tax.

          (i) except as required to comply with applicable Law or any Contract or Benefit Plan in effect
on the date of this Agreement, or in accordance with a plan for doing so previously disclosed to
Buyer and acknowledged in writing by Buyer, (i) pay to any Company Personnel any bonus, other
amount or other benefit, or make any advance or loan to any

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Company Personnel, in either case not
provided for under any Contract or Benefit Plan in effect on the date of this Agreement other than
the payment of base compensation in the Ordinary Course, (ii) grant any awards under any Benefit
Plan (including the grant of stock options, stock appreciation rights, stock based or stock related
awards, performance units or Restricted Stock or the removal of existing restrictions in any
Contract or Benefit Plan or awards made thereunder), (iii) take any action to fund or in any other
way secure the payment of compensation or benefits under any Contract or Benefit Plan, (iv) take
any action to accelerate the vesting or payment of any compensation or benefit under any Contract
or Benefit Plan, (v) adopt, enter into or amend any Benefit Plan or Benefit Agreement or (vi) make
any material determination under any Benefit Plan that is inconsistent with the Ordinary Course;

          (j) except in accordance with a plan for doing so previously disclosed to Buyer in writing and
acknowledged by Buyer in writing, enter into any lease or sublease of real property (whether as a
lessor, sublessor, lessee or sublessee) or modify, amend, terminate or fail to exercise any right
to renew any lease or sublease of real property;

          (k) incur or commit to incur any capital expenditure (or any obligation or liability in
connection therewith), in an amount greater than $100,000 individually or $200,000 in the
aggregate, except in the Ordinary Course;

          (l) except to the extent otherwise expressly required by this Agreement, incur or commit to
incur any expenditure (or any obligation or liability) in an amount greater than $50,000
individually or $100,000 in the aggregate, other than in the Ordinary Course;

          (m) enter into or amend any Contract in any material respect (or any substantially related
Contracts, taken together) (i) that would constitute a Material Contract, , or (ii) if under such
Contract as amended, consummation of the Merger or any of the other transactions contemplated
hereby or compliance by the Company with the provisions of this Agreement will result in any
material violation or breach of, or material default (with or without notice or lapse of time or
both) under, or result in the creation of any Lien (other than a Permitted Lien) in or upon any of
the properties or assets of the Company or Buyer, under, any provision of such Contract;

          (n) waive, release or assign any material rights or claims under, fail to take a required
action under, permit the lapse of or default under, or terminate any Material Contract;

          (o) pay, discharge, settle or satisfy any claims, liabilities or obligations (whether
absolute, accrued, asserted or unasserted, contingent or otherwise), other than the payment,
discharge or satisfaction in the Ordinary Course or as required by claims, liabilities or
obligations of the Company reserved against on the Most Recent Balance Sheet or incurred since the
Most Recent Balance Sheet Date in the Ordinary Course;

          (p) except as required by applicable Law, adopt or enter into any collective bargaining
agreement or other labor union Contract applicable to any Company Personnel or terminate the
employment of any Company Personnel that has an employment, severance or similar agreement or
Contract with the Company, except for payment of severance of up to $15,000 individually and
$45,000 in the aggregate;

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          (q) commence, participate or agree to commence or participate in any bankruptcy, voluntary
liquidation, dissolution, winding up, examinership, insolvency or similar proceeding in respect of
the Company;

          (r) create any Subsidiary of the Company;

          (s) enter into any type of business that is not within the Company’s existing line of
business;

          (t) establish any Company Stock Plan, or grant any options, warrants or other rights to
acquire shares of Company Common Stock;

          (u) enter into or amend any agreement that would limit the ability of any of the Company,
Buyer or any affiliate of Buyer, including without limitation, following the Effective Time, the
Surviving Corporation to operate in a specific area of business or specific geographic area after
the closing of the Merger and the other transactions contemplated by this Agreement; or

          (v) authorize any of, or commit, resolve or agree, whether in writing or otherwise, to take
any of, the actions listed in Sections 6.1(a) through (u).

     Section 6.2. Access. Prior to Closing, the Company shall, and Parent shall cause the
Company to, upon reasonable advance notice and during normal business hours, (i) make available for
inspection by Buyer and its Representatives all of the Company’s properties, assets, books of
accounts, records (including the work papers of the Company’s independent accountants) and
Contracts and any other materials requested by any of them relating to the Company and its existing
and prospective businesses and assets and liabilities as Buyer may reasonably request, (ii) make
available to Buyer and its Representatives the officers, other senior management and
Representatives of Parent and the Company for interviews, as Buyer and its Representatives may
reasonably request, to verify and discuss the information furnished to Buyer and its
Representatives and otherwise discuss the Company’s existing and prospective businesses and assets
and liabilities, (iii) help gain reasonable access for Buyer, at such times as Buyer and its
Representatives may request, to the Company’s employees, clients, customers, Affiliates or other
Persons having a material business relationship with the Company, provided, however, that Buyer
shall not contact any clients or customers without the prior consent of the Company, which consent
shall not be unreasonably withheld and (iv) reasonably assist Buyer and its Representatives in
becoming familiar with the Company’s existing and prospective businesses and assets and liabilities
as Buyer and its Representatives may reasonably request. Any and all such investigations shall be
conducted in a manner that does not unreasonably interfere with the conduct of the business of the
Company or the Parent and that would not reasonably be expected
to cause a Material Adverse Change to the Company in the event the Merger is not consummated.

     Section 6.3. Parent Covenants.

          (a) Except with the prior written consent of Buyer or, as expressly permitted by the terms of
this Agreement from the date of this Agreement to the Effective Time, Parent shall not (i) directly
or indirectly, cause or permit any sale of, assignment of, pledge of,

30

 

encumbrance of, grant of an option with respect to, transfer of or other disposition of,
any of the shares of Company Common Stock owned by Parent as of the date of this Agreement (“Parent
Stock”), (ii) enter into an agreement or commitment contemplating the possible sale of, assignment
of, pledge of, encumbrance of, grant of an option with respect thereto, transfer of or other
disposition of any Parent Stock or (iii) reduce its beneficial ownership of, interest in or risk
relating to any Parent Stock.

          (b) The Company shall pay, and Parent shall cause the Company to pay, to Buyer on or prior to
the Closing Date the franchise fees for which the Company is obligated to Buyer for the months
that elapse until Closing, and a pro rata portion for any partial current month (the “Franchise
Fees”).

          (c) Notwithstanding anything to the contrary herein, including, without limitation, Section
6.1, prior to the Closing, Parent shall cause the Company to declare and effect a non-cash dividend
to Parent in an amount equal to the accumulated account receivable of the Company from Parent as of
the date hereof so as to offset and eliminate any obligation of Parent to pay such account
receivable to the Company; provided that Parent and the Company shall not, after the date
hereof, further accrue any inter-company account payable or receivable.

          (d) Except pursuant to an effective registration statement under the Securities Act, as a
result of a Parent Change of Control, in a transaction between Parent and any of its Affiliates, or
as pledged to Parent’s bank lender to secure Parent’s obligations to such lender in connection with
indebtedness for borrowed money, as currently in effect or as may be amended, as foreclosed upon by
such lender following Parent’s default with respect to any of such obligations or as transferred
from such lender pursuant to a foreclosure sale,

               (i) from the Closing Date to the date that is six (6) months after the Closing Date, Parent
shall not, (A) directly or indirectly, cause or permit any sale of, assignment of, pledge of,
encumbrance of, grant of an option with respect to, transfer of or other disposition of, any of the
shares of Buyer Common Stock issued to Parent as a portion of the Closing Consideration, (B) enter
into an agreement or commitment contemplating the possible sale of, assignment of, pledge of,
encumbrance of, grant of an option with respect thereto, transfer of or other disposition of any of
the shares of Buyer Common Stock issued to Parent as a portion of the Closing Consideration or (C)
reduce its beneficial ownership of, interest in or risk relating to any of the shares of Buyer
Common Stock issued to Parent as a portion of the Closing Consideration; provided that
Parent may also during such first six-month period cause or permit any of the actions or
occurrences set forth in this clause (i) with Buyer’s prior written consent, which Buyer may
withhold or delay in its sole discretion; and

               (ii) from the date that is six (6) months after the Closing Date to the first anniversary of
the Closing Date, Parent shall not cause or permit any of the actions or occurrences set forth in
the immediately preceding clause (i); provided that Parent may also during such second
six-month period cause or permit any of such actions or occurrences with Buyer’s prior written
consent, which consent Buyer shall not unreasonably withhold or delay; provided,
further, that the Parties acknowledge and agree that Buyer will be deemed reasonable in
withholding or delaying its consent if Buyer in its sole judgment determines that any such

31

 

action
or occurrence would adversely affect the public trading price of the Buyer Common Stock.

Notwithstanding the foregoing, prior to and as a condition of any transfer to or acquisition of an
interest in such shares permitted under either clause (i) or clause (ii) of this Section 6.3(d)
other than pursuant to an effective registration statement under the Securities Act, the party that
is the proposed transferee of or acquiror an interest in such shares, including, without
limitation, such lender taking a pledge of such shares, shall agree in a writing satisfactory to
Buyer that such party will be bound by the provisions of this Section 6.3(d) to the same extent as
Parent was originally bound.

     Section 6.4. Tax Matters.

          (a) The Company shall timely prepare and file any Tax Return required to be filed by the
Company on or before the Closing Date (a “Pre-Closing Tax Return”), and timely pay any Tax
reflected thereon. In addition, the Company shall submit any Pre-Closing Tax Returns that are to
be filed after the date hereof (other than any Tax Returns filed on a consolidated, combined,
unitary or affiliated basis with Parent) to Buyer for approval prior to filing, which approval
shall not be unreasonably withheld, conditioned or delayed. The Company will not take any position
on such Tax Returns that is inconsistent with past custom and practice.

          (b) Buyer shall prepare any Tax Return of the Company (other than any Tax Return filed on a
consolidated, combined, unitary or affiliated basis with Parent), as the Surviving Corporation,
required to be filed after the Closing Date or which Buyer determines was required to be filed
prior to the Closing Date but which was not filed on a timely basis and, subject to the
indemnification obligations of Parent under Section 6.4(a). Buyer or the Surviving Corporation
shall pay any such Tax reflected thereon. Buyer will not cause the Surviving Corporation to take
any position on such Tax Returns that is inconsistent with Company’s past custom and practice
without the written consent of the Parent, which consent shall not be unreasonably withheld.

          (c) All transfer, documentary, sales, use, registration and other such Taxes (including all
applicable real estate transfer Taxes but specifically excluding any net income, capital gains or
similar Taxes) and related fees (including any penalties, interest and additions to Tax) incurred
in connection with the Merger and the other transactions contemplated hereby shall be borne equally
by Parent and Buyer, and Parent and Buyer shall cooperate in timely filing all Tax Returns as may
be required to comply with the provisions of such Tax Laws. Buyer and Parent will reasonably
cooperate with each other to lawfully minimize any such Taxes.

          (d) From the date hereof through the Closing Date, the Company shall not effect any
extraordinary transactions (other than any such transactions expressly required by applicable Law
or by this Agreement) that could result in Tax liability to the Company in excess of Tax liability
associated with the conduct of its business in the Ordinary Course.

          (e) Buyer shall not make an election under Section 338 of the Code (or any analogous provision
of state or local Tax law) or cause the Surviving Corporation after the

32

 

Closing to effect any
extraordinary transaction (other than any such transactions expressly required by applicable Law or
by this Agreement) that could result in Tax liability to Parent for Pre-Closing Taxes.

          (f) Parent shall cause the provisions of any Tax allocation, indemnity or sharing Contract
between Parent, or any of its Affiliates (other than the Company) or any third party, on the one
hand, and the Company, on the other hand, to be terminated on or before the Closing Date.

          (g) Buyer shall not amend any Tax Returns of Company, or settle any audit, claim, dispute or
controversy relating to Taxes, for any period (or portion thereof) ending on or prior to the
Closing Date, without the express written consent of Parent.

     Section 6.5. Consents. The Company shall cooperate and use commercially reasonable
efforts to (i) obtain all material consents, orders, approvals, authorizations, declarations or
filings, and give all notices, in each case which are required to be obtained by applicable Law or
Governmental Entity, and which are necessary to consummate the Merger and the other transactions
contemplated hereby and to comply with all applicable Laws in connection with the consummation of
the Merger and the other transactions contemplated hereby and (ii) obtain all material consents and
give all notices required under any Contract disclosed on Section 2.13(a) of the Disclosure
Schedule to consummate the Merger and the other transactions contemplated hereby.

     Section 6.6. Insurance. The Company shall keep all insurance policies set forth on
Section 2.17 of the Disclosure Schedule, or comparable replacements therefor, in full force
and effect through the Effective Time and such that such insurance policies will be in full force
and effect immediately following the Effective Time.

     Section 6.7. Exclusivity.

          (a) From the date of this Agreement to the Closing Date or, if the Closing shall not have
occurred on or prior to March 31, 2008, such date, neither the Company nor any of its officers,
directors, stockholders, Affiliates or any Representative of the Company will, without the prior
written approval of Buyer, directly or indirectly, take any of the following actions with any party
other than Buyer or its Affiliates, except as may be required by Law:

               (A) Other than the transactions contemplated by this Agreement, solicit, initiate or
encourage, or take any other action with the intention of facilitating, any inquiries or the making
of any proposal that constitutes an Acquisition Proposal or (B) participate in any discussions or
negotiations regarding any Acquisition Proposal;

          (b) disclose or furnish to any Person other than Buyer and its Affiliates any information
concerning the assets or business of the Company (A) which is not customarily disclosed to third
parties or (B) in contemplation of any Acquisition Proposal; or assist or cooperate with any Person
other than Buyer and its Affiliates to make any offer or proposal to consummate or effect any of
the types of transactions described in the definition of Acquisition Proposal.

33

 

          (c) Without limiting Section 6.7(a), it is understood that any violation of the restrictions
set forth in Section 6.7(a) by any Person covered by Section 6.7(a), whether or not such Person is
purporting to act on behalf of the Company, shall be deemed to be a breach of Section 6.7(a) by the
Company.

          (d) If any of the Persons listed in Section 6.7(a) receives any inquiry, proposal or offer of
the nature described in Section 6.7(a), then the Company shall, within one (1) Business Day
thereafter, notify Buyer of such inquiry, proposal or offer, indicating the material terms,
conditions and other aspects of such inquiry, proposal or offer, including the scope of the work at
issue and the extent of the contemplated commitment of the Company’s resources and capacity, and a
copy of any written materials received from such Person making the inquiry, proposal or offer.

     Section 6.8. Notice of Certain Events. Subject to restrictions imposed by applicable
Law, (a) the Company shall promptly notify Buyer of, and furnish Buyer with any information in its
possession that Buyer may reasonably request with respect to, the occurrence of any event or
condition or the existence of any fact that could reasonably be expected to cause any of the
conditions to the obligation of Buyer to consummate the Merger set forth in Section 5.2 to not be
satisfied, and (b) the Company shall promptly, upon obtaining knowledge, notify Buyer of, and
furnish Buyer with any information in Company’s possession that Buyer may reasonably request with
respect to, (i) the Company being notified by any of its employees that such employee intends to,
or is considering, terminating such employee’s employment with the Company, including in connection
with or as a result, in part or in whole, of the transactions contemplated hereby or any other sale
of the Company and (ii) the Company having any knowledge of any officer or executive employee of
the Company intending to, or considering, doing the same. No information delivered to Buyer
pursuant to this Section 6.8 shall update the Disclosure Schedule.

     Section 6.9. Termination of 401(k) Plan. Effective as of the day immediately
preceding the Closing Date, Parent shall cause the Company to terminate or freeze, in Parent’s
discretion, any and all Benefit Plans set forth in Section 2.18(a)(ii) of the Disclosure
Schedule intended to include a Code Section 401(k) arrangement, including without limitation,
the TSI 401(k) Plan (each, a “Company 401(k) Plan”), and Parent and the Company shall each take all
necessary steps to transfer the sponsorship of each Company 401(k) Plan to Parent as of the day
immediately preceding the Closing Date. Upon the reasonable request of Buyer, Parent and the
Company shall provide Buyer with evidence of their respective actions in connection with this
Section 6.9 prior to the Closing Date.

     Section 6.10. Parent’s and the Company’s Auditors. Parent and the Company shall
provide, and shall cause their management and its independent accountants to provide, such
information regarding the Company and assistance as Buyer or its independent accountants may
reasonably request in order to facilitate on a timely basis (a) the preparation of financial
statements (including pro forma financial statements if required) as required by Buyer to comply
with applicable SEC regulations, (b) the review of any audit or review work papers with respect to
Parent relating to the Company or with respect to the Company, including the examination of interim
financial statements and data and (c) the delivery of such representations from Parent’s and the
Company’s independent accountants as may be reasonably requested by Buyer or its independent
accountants.

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     Section 6.11. Delivery of Stock Ledger and Minute Book of the Company. The Company
shall, and Parent shall cause the Company to, deliver the Company’s stock ledger and minute books
to Buyer at the Closing.

ARTICLE 7

MUTUAL COVENANTS

     Section 7.1. Commercially Reasonable Efforts. From the date of this Agreement to the
Closing, each Party shall use commercially reasonable efforts to take, or cause to be taken, all
actions and to do, or cause to be done, and to assist and cooperate with the other Parties in
doing, all things, in each case necessary or advisable to permit the consummation of the Merger and
the other transactions contemplated hereby, including (i) obtaining any consents, authorizations,
approvals, permits, licenses, or governmental authorizations, estoppel certificates and filings
under any applicable Law required to be obtained or made by either of them which may be necessary
or appropriate to permit the consummation of the Merger and the other transactions contemplated
hereby, (ii) ensuring that its representations and warranties remain true and correct in all
material respects through the Closing Date and (iii) ensuring that the conditions to the
obligations of the other Parties to consummate the Merger are satisfied. Without limiting the
foregoing, in the event that (x) any claim, suit, action or proceeding of the type and having any
of the effects described in Section 5.1(b) is pending or threatened or (y) any Legal Restraint that
could reasonably be expected to result, directly or indirectly, in any of the effects described in
Section 5.1(b) is in effect, then the Company or Buyer, as applicable, shall use commercially
reasonable efforts to have such claim, suit, action, proceeding or Legal Restraint vacated,
reversed or made to be no longer in effect.

     Section 7.2. Publicity. No Party shall, nor shall any Party permit any of its
officers, directors or Representatives (“Representative Persons”) or any Representative Persons of
the foregoing (collectively, the “Other Persons”) to, issue a press release or public announcement
or otherwise make any public disclosure or public disclosure to its employees (nor shall Buyer,
Parent or the Company communicate with any of their respective employees or permit any Other
Persons to do so, except for communications with such employees required for Buyer, Parent and the
Company to satisfy their obligations hereunder) concerning the subject matter of this Agreement
(including its existence) without the prior written approval of the other Parties, provided
that any Party may make any public disclosure it believes in good faith is required by applicable
Law or stock market rule and in such case (other than disclosure pursuant to stock market rule or
securities Laws) such Party must, prior to making such disclosure, (a) use commercially reasonable
efforts to advise the other Parties of such disclosure (including a copy thereof) as far in advance
of such disclosure as is reasonably practicable and (b) consult with the other Parties with respect
to the content of such disclosure.

     Section 7.3. Expenses. Whether or not the Merger and the other transactions
contemplated hereby are consummated, and except as otherwise set forth in Article 8, each of the
Parties shall bear its own fees and expenses incurred or owed in connection with the Merger, this
Agreement and the other transactions contemplated hereby.

     Section 7.4. Tax-Free Reorganization Treatment. Each of Buyer, Merger Sub, the
Company and Parent shall use its or their every reasonable effort to cause the Merger to

35

 

constitute a “reorganization” within the meaning of Section 368(a) of the Code for federal income tax purposes
(a “Tax-Free Reorganization”); provided, however, that Buyer shall use its best efforts to
cause the Merger to satisfy the requirements set forth in Treasury Regulations Section
1.368-2(j)(3)(i). None of the Parties has taken or will, either before or after consummation of
the Merger, take any action which, to the knowledge of such party, would cause, nor will any of the
Parties fail to perform, or otherwise breach, this Agreement in any way which would cause, or in
either case result in, the Merger to fail to constitute a Tax-Free Reorganization. Unless
otherwise required by Law, each party shall (i) report the Merger on all Tax Returns and filings as
a Tax-Free Reorganization, and (ii) not take any position or action that is inconsistent with the
characteristics of the Merger as a Tax-Free Reorganization in any audit, administrative proceeding,
litigation or otherwise.

     Section 7.5. Escrow Agreement. Buyer and Parent shall execute and deliver the Escrow
Agreement for the holding, administration and distribution of the Escrow Amount and any earnings
thereon (the “Escrow Agreement”), and perform the Escrow Agreement with the Escrow Agent.

     Section 7.6. Further Assurances. From time to time prior to the Closing, as and when
requested by any Party, the other Parties shall execute and deliver, or cause to be executed and
delivered, all such documents and instruments and shall take, or cause to be taken, all such
further or other actions as such other Party may reasonably deem necessary or desirable in order to
carry out the intent and accomplish the purposes of this Agreement and the consummation of the
transactions contemplated hereby.

ARTICLE 8

INDEMNIFICATION

     Section 8.1. Indemnification.

          (a) From and after the Closing, Parent shall indemnify and hold harmless Buyer, the Surviving
Corporation, their direct and indirect subsidiaries and their respective directors, officers,
employees, agents and affiliates ( each a “Buyer Indemnified Party” and , together, “Buyer
Indemnified Parties”) in respect of, and hold each of them harmless against, any and all debts,
obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or
whether known or unknown, or due or to become due or otherwise), monetary damages, fines, fees,
penalties, interest obligations, deficiencies, losses and expenses (including without limitation
amounts paid in settlement, interest, court costs, costs of investigators, fees and expenses of
attorneys, accountants, financial advisors and other experts, and other expenses of litigation)
(“Damages”) incurred or suffered by any of such Indemnified Parties resulting from, relating to or
constituting:

               (i) any breach or inaccuracy of a representation or warranty of the Company or Parent, as the
case may be, contained in this Agreement or in any other agreement, certificate or other instrument
executed and delivered by or on behalf of the Company or Parent pursuant to this Agreement; or

36

 

               (ii) any failure by the Company or Parent, as the case may be, to perform or comply with any
covenant applicable to it contained in this Agreement, including, without limitation, the Company’s
failure, and Parent’s failure to cause the Company to, carry out the terms of Section 6.9 without
any Damages (as defined below (“401(k) Damages”) incurred or suffered by Buyer or the Surviving
Corporation.

               (iii) the failure by Parent to (A) contribute to the pending settlement or any other
settlement of the action commenced in Superior Court for the State of California by Tony Tiu and
Rob Campbell against Buyer and other parties, or to satisfying an award of damages if such action
is not settled, to the same extent the Company has previously agreed to contribute, namely,
$180,000 or (B) to pay the legal fees and expenses incurred by the Company or Buyer and
attributable to the Company in connection with such action to the Closing Date (but not thereafter)
(collectively, the “California Litigation Amount”)

          (b) From and after the Closing, Buyer and the Surviving Corporation, jointly and severally,
shall indemnify and hold harmless Parent, its direct and indirect subsidiaries and its directors,
officers, employees, agents and affiliates in respect of, and hold each of them harmless against,
any and all Damages incurred or suffered by any of such Indemnified Parties resulting from,
relating to or constituting:

               (i) any breach or inaccuracy of a representation or warranty of Buyer or Merger Sub contained
in this Agreement or in any other agreement, certificate or other instrument executed and delivered
by or on behalf of Buyer or Merger Sub pursuant to this Agreement; or

               (ii) any failure by Buyer, Merger Sub or, after the Closing, the Surviving Corporation to
perform or comply with any covenant applicable to it contained in this Agreement or any other
agreement executed and delivered pursuant to this Agreement.

     Section 8.2. Indemnification Claims.

          (a) An Indemnified Party shall give written notification to the Indemnifying Party (a “Claim
Notice”) of the commencement of any suit or proceeding relating to a third party claim for which
indemnification pursuant to this Article 8 may be sought (each a “Third Party Claim”). Such Claim
Notice shall be given within twenty (20) Business Days after receipt by the Indemnified Party of
notice of such Third Party Claim, and shall describe in reasonable detail (to the extent known by
the Indemnified Party) the facts constituting the basis for such Third Party Claim and the amount
of the claimed damages; provided that no delay on the part of the Indemnified Party in
notifying the Indemnifying Party shall relieve the Indemnifying Party of any liability or
obligation hereunder except to the extent of any damage or liability caused by or arising out of
such failure. Within twenty (20) Business Days after delivery of such Claim Notice, the
Indemnifying Party may, upon written notice thereof to the Indemnified Party, assume control of the defense of such Third Party Claim with counsel
reasonably satisfactory to the Indemnified Party; provided that the Indemnifying Party may not
assume control of the defense of any Legal Proceeding involving a Third Party Claim for criminal
liability or in which equitable relief is sought against the Indemnified Party. If the
Indemnifying Party does not so assume control of such defense, the Indemnified Party shall

37

 

control
such defense. The Party not controlling such defense (the “Non-Controlling Party”) may participate
in, but not control, the defense at its own expense; provided that if the Indemnifying Party
assumes control of such defense and the Indemnified Party reasonably concludes that the
Indemnifying Party and the Indemnified Party have conflicting interests or different defenses
available with respect to such Third Party Claim, the reasonable fees and expenses of one counsel
incurred by the Indemnified Party as a result of protecting or preserving such conflicting
interests or different defenses shall be considered Damages for purposes of this Agreement. The
party controlling such defense (the “Controlling Party”) shall keep the Non-Controlling Party
advised of the status of such Third Party Claim and the defense thereof and shall consider in good
faith recommendations made by the Non-Controlling Party with respect thereto. The Non-Controlling
Party shall furnish the Controlling Party with such information as it may have with respect to such
Third Party Claim (including copies of any summons, complaint or other pleading which may have been
served on such party and any written claim, demand, invoice, billing or other document evidencing
or asserting the same) and shall otherwise reasonably cooperate with and assist the Controlling
Party in the defense of such Third Party Claim. The Controlling Party shall not agree to any
settlement of, or the entry of any Judgment arising from, any such Third Party Claim without the
prior written consent of the Indemnified Party, which shall not be unreasonably withheld or
delayed; provided that the Indemnified Party may reject any such settlement where the
relief sought is other than money Damages.

          (b) Any claim for which an Indemnified Party intends to assert a right to indemnifiable
Damages under this Agreement which does not result from a Third Party Claim or for which the
Indemnified Party seeks release of Escrowed Funds (a “Direct Claim”) shall be asserted by giving to
the Indemnifying Party a Claim Notice stating the nature and basis in reasonably specific detail
and, if known, the amount of the claim. Within twenty (20) Business Days of receipt of the Claim
Notice (“Response Period”), the Indemnifying Party shall respond to the Indemnified Party in
writing to accept the claim or to dispute the claim, in which event such response shall provide
reasonably specific details of any allegations in the Claim Notice that are disputed. If accepted
in writing, a claim for indemnification hereunder shall be deemed established as of the time of
such acceptance and Parent and Buyer shall instruct the Escrow agent to pay such claim within ten
(10) days after the date on which so established. In the event that the Indemnifying Party fails to
respond in writing within the Response Period, then such claim shall conclusively be deemed to be
an obligation of the Indemnifying Party and shall be paid in full within ten (10) days following
the end of the Response Period.

          (c) In the event of any controversy or dispute arising out of or relating to this Agreement or
the Escrow Agreement, or any breach thereof, or any Direct Claim disputed pursuant to the procedure
in Section 8.2(b) which the Indemnified Party and the Indemnifying Party are unable to resolve
through negotiation, the Party asserting such claim or breach shall give written notice (the
“Dispute Notice”) to the other Party setting forth in reasonable detail the nature of such claim or
alleged breach. Except as set forth in the following sentence, such dispute if not otherwise
resolved by agreement of such Parties shall be settled by arbitration before a single arbitrator selected by such Parties in accordance with the rules of the
American Arbitration Association, and located in the State of Delaware. If the Indemnified Party
and the Indemnifying Party fail to agree upon an arbitrator within fifteen (15) days after the date
of the Dispute Notice, then such Party shall select an arbitrator within the following ten (10)
days, the arbitrators selected by the Indemnified Party and the Indemnifying Party shall select a
third

38

 

arbitrator, and all arbitrators shall arbitrate the controversy or claim. The results of the
arbitration shall be final binding and not subject to appeal and the Escrow agent shall pay a claim
for indemnification hereunder that is so finally resolved by arbitration within ten (10) days after
such arbitral resolution.

     Section 8.3. Survival of Representations and Warranties. All representations and
warranties contained in this Agreement shall (a) survive the Closing and any investigation at any
time made by or on behalf of an Indemnified Party and (b) shall expire at 12:00, midnight, EDT, on
March 31, 2009, except for representations and warranties related to Taxes, which shall survive
until the expiration of the applicable statute of limitations. If an Indemnified Party delivers to
an Indemnifying Party, before expiration of a representation or warranty, either a Claim Notice
based upon a breach of such representation or warranty, or a notice that, as a result a legal
proceeding instituted by or written claim made by a third party, the Indemnified Party reasonably
expects to incur Damages as a result of a breach of such representation or warranty (an “Expected
Claim Notice”), then such representation or warranty shall survive until, but only for purposes of,
the resolution of the matter covered by such notice. If the legal proceeding or written claim with
respect to which an Expected Claim Notice has been given is definitively withdrawn or resolved in
favor of the Indemnified Party, the Indemnified Party shall promptly so notify the Indemnifying
Party.

     Section 8.4. Fraud Claims; No Contribution; Characterization of Payments.
Notwithstanding any provision of this Agreement to the contrary (including without limitation
Section 8.5), nothing contained in this Agreement shall in any way limit, impair, modify or
otherwise affect the rights of an Indemnified Party to bring any claim, demand, suit or cause of
action otherwise available to such Indemnified Party based upon, or to seek or recover any Damages
arising from or related to, an allegation or allegations that an Indemnifying Party had an intent
to defraud (as such term applies under common law and securities law principles) or made a willful
or intentional misrepresentation or omission of a material fact in connection with this Agreement
or the transactions contemplated hereby or thereby.

     Section 8.5. Limitations, Etc.

          (a) Notwithstanding anything to the contrary herein, the aggregate liability or deemed
liability for Damages under this Article 8 or otherwise shall not exceed nine million dollars
($9,000,000) for either (i) Parent or (ii) Buyer and the Surviving Corporation. For purposes of
this Article 8, all representations and warranties of the Company in Article 2 (other than Section
2.27), Parent in Article 3 and Buyer and Merger Sub in Article 4 shall be construed as if the term
material” and any reference to “Material Adverse Change” (and variations thereof) were omitted from
such representations and warranties.

          (b) Notwithstanding anything to the contrary herein, except for a Direct Claim for Damages by
one or more of the Buyer Indemnified Parties arising out of or related to a breach by Parent of its representations and warranties set forth in Section 3.3, for the
Franchise Fees, 401(k) Damages, and the California Litigation Amount, no Indemnified Party shall be
entitled to indemnification pursuant to this Article 8 unless and until the total Damages to which
Indemnified Parties are entitled exceed two hundred thousand dollars ($200,000) (“Damage

39

 

Threshold”), at which point the Indemnified Parties shall be entitled to collect the full amount of
the Damages incurred.

          (c) Except with respect to claims brought pursuant to Section 8.4, after the Closing any
Damages for which Parent is liable or deemed liable pursuant to this Article 8 shall be satisfied
first from the Escrow Amount until the Escrow Amount shall have been exhausted and then by recovery
from Parent. Except for claims pursuant to Section 8.4, Parent shall have no liability whatsoever
to satisfy any indemnification claim for Damages that exceed the limitation set forth in Section
8.5(a). Other claims for the payment of fees and expenses which, by the express terms of this
Agreement are recoverable, shall be recoverable but need not be recovered in the case of Buyer from
the Escrow Amount. The remedies available under this Article 8 shall be the sole and exclusive
remedies of the Indemnified Parties with respect to all claims arising under, resulting from or
relating to this Agreement or the transactions contemplated hereby, other than as provided in
Section 12.3.

          (d) Notwithstanding anything to the contrary herein, the Indemnified Party shall take
reasonable steps to mitigate any Damages upon becoming aware of any event which would reasonably be
expected to, or does, give rise thereto, including incurring costs only to the minimum extent
necessary to remedy the breach which gives rise to the Damages and including seeking recovery to
the extent of any applicable insurance coverage.

          (e) The indemnification of Damages of the Indemnified Parties pursuant to this Article 8 shall
be net of the amount of (i) any tax benefit actually realized in connection with a liability,
damage, expense or loss indemnified hereunder, but after giving effect to any tax which may be
required to be paid on the indemnification payment; and (ii) any insurance proceeds and indemnity
and contribution actually recovered by the Indemnified Parties. A tax adjustment indemnified
hereunder which involves only a change in the year in which an amount is includible in income or
deductible and no other loss shall be indemnified only to the extent of the interest and penalties
resulting from such adjustment.

          (f) Parent shall not have any right of contribution against the Company or the Surviving
Corporation with respect to any Damages claimed by an Indemnified Party.

ARTICLE 9

PRIVATE PLACEMENT

     Section 9.1. Private Placement. The offer and sale of the shares of Buyer Common
Stock constituting a portion of the Merger Consideration are being made pursuant to an exemption
from the registration requirements under the Securities Act and, therefore, cannot be resold unless
they are subsequently registered under the Securities Act and applicable state securities laws or
unless exception from such registration is available. Parent may not sell, assign, pledge,
transfer or otherwise dispose of or encumber any shares of Buyer Common Stock constituting a
portion of the Merger Consideration received by it except pursuant to an
exemption from the registration requirements of the Securities Act and applicable state
securities laws until such securities have been registered under the Securities Act and any
applicable state laws. Any transfer or purported transfer in violation of this Section 9.1 shall
be voidable by Buyer, and Buyer will not be required or obligated to register any transfer of the
shares of Buyer

40

 

Common Stock constituting a portion of the Merger Consideration in violation of
this Section 9.1. Buyer may, and may instruct its transfer agent, to place such stop-transfer
orders as may be required on the transfer books of Buyer in order to ensure compliance with this
Section 9.1. Each certificate representing Buyer Common Stock constituting the Closing
Consideration and the Additional Consideration, if any, shall be endorsed with a legend in
substantially the form set forth below (which shall be removed in accordance with the Registration
Rights Agreement):

“THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE OFFERED, SOLD, ASSIGNED,
PLEDGED, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT (i) PURSUANT TO AN EFFECTIVE
REGISTRATION STATEMENT UNDER THE SECURITIES ACT, (ii) PURSUANT TO AN APPLICABLE
EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE SECURITIES ACT OR (iii)
PURSUANT TO THE RESALE PROVISIONS OF RULE 144 PROMULGATED THEREUNDER.”

     Section 9.2. Authorization and Reservation of Shares. Except as otherwise set forth
in this Article 9, Buyer shall (a) at all times prior to the Closing have authorized, and reserved
for the purpose of issuance, a sufficient number of shares of Buyer Common Stock to provide for the
full issuance to Parent of the Closing Consideration and (b) to provide reasonably for the full
issuance to Parent of the Additional Consideration, if any is issuable. Buyer shall not reduce the
number of shares of Buyer Common Stock reserved for issuance under the terms of this Agreement
without the consent of Parent. Buyer shall at all times after the Closing maintain the number of
shares of Buyer Common Stock so reserved for issuance at an amount (the “Reserved Amount”) equal to
no less than two (2) times the number that is issued as the Closing Consideration . If at any time
prior to the Closing or the first anniversary of the Closing, as applicable, the number of shares
of Buyer Common Stock authorized and reserved for issuance (the “Authorized and Reserved Shares”)
is below the Reserved Amount, Buyer shall promptly take all corporate action necessary to authorize
and reserve a sufficient number of shares, including, without limitation, calling a special meeting
of its shareholders to authorize additional shares to meet Buyer’s obligations under this Section
9.2, in the case of an insufficient number of authorized shares, obtaining shareholder approval of
an increase in such authorized number of shares, and voting the management shares of Buyer in favor
of an increase in the authorized shares of Buyer to ensure that the number of authorized shares is
sufficient to meet the Reserved Amount.

ARTICLE 10

TERMINATION

     Section 10.1. Termination. This Agreement may be terminated, and the Merger
contemplated hereby may be abandoned, at any time prior to the Effective Time:

          (a) by written consent of Buyer and Parent;

          (b) by either Buyer or Parent if the Merger has not been consummated by March 31, 2008 (or
such later date as may be mutually agreed upon in writing by Buyer and

41

 

Parent); provided
that the right to terminate this Agreement pursuant to this Section 10.1(b) shall not be available
to any Party whose failure to fulfill any obligation under this Agreement has been the cause of, or
resulted in, the failure of the Merger to be consummated by such date;

          (c) by either Buyer or the Parent, if any Legal Restraint (as defined below) having the effect
referred to in Section 5.1(b) is in effect and has become final and non-appealable;

          (d) by Buyer, if the Company has breached in any material respect any of its representations,
warranties or covenants contained in this Agreement, which breach of failure to perform (i) would
give rise to a failure of a condition set forth in Section 5.2(a), (b) or (c) and (ii) has not been
cured by the Company within ten (10) Business Days after the giving of written notice thereof from
Buyer, if curable;

          (e) by Buyer, if Parent has breached in any material respect any of its representations,
warranties or covenants contained in this Agreement, which breach of failure to perform (i) would
give rise to a failure of a condition set forth in Section 5.2(b) or (c) and (ii) (A) has not been
cured by the Parent within ten (10) Business Days after the giving of written notice thereof from
Buyer or (B) in the case of the covenants set forth in Section 6.3(a), has not been cured by the
Parent within two (2) Business Days prior to the Closing;

          (f) by Parent, if Buyer or Merger Sub has breached in any material respect any of its
representations, warranties or covenants contained in this Agreement, which breach of failure to
perform (i) would give rise to a failure of a condition set forth in Section 5.3(a) or (b) and (ii)
has not been cured by Buyer or Merger Sub within ten (10) Business Days after the giving of written
notice thereof from the Company;

          (g) by Buyer, if the Pre-Closing Average (as defined below) falls below $6.25 per share; and

          (h) by Parent, if the Pre-Closing Average rises above $9.75 per share.

     Section 10.2. Effect of Termination. If this Agreement is terminated and the Merger
and the other transactions contemplated hereby are abandoned as described in this Article 10, this
Agreement shall become void and of no further force or effect, except for the provisions of
Sections 7.2, 7.3 and this Section 10.2; provided that nothing in this Section 10.2 shall
be deemed to release any Party from any liability for any breach by such Party of the terms and
provisions of this Agreement or to impair the right of any Party to compel specific performance by
the other Parties of their respective obligations under this Agreement.

ARTICLE 11

DEFINED TERMS

     Section 11.1. Definitions. The following capitalized terms have the following
meanings:

     “401(k) Damages” is defined in Section 8.1(a)(ii).

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     “401(k) Plan(s)” is defined in Section 6.9.

     “Acquisition Proposal” means any (i) direct or indirect acquisition or sale of assets of the
Company other than acquisitions or sales of any assets or group of assets in one or more related
transactions in the Ordinary Course, (ii) merger, consolidation, business combination,
recapitalization involving the Company or (iii) similar transaction involving the Company that
would have the same or similar effects described in clauses (i) or (ii).

     “Additional Consideration” is defined in Section 1.9(d).

     “Additional Shares” is defined in Section 1.9(d).

     “Affiliate” means, with respect to any Person, a Person who is an “affiliate” of such first
Person within the meaning of Rule 405 under the Securities Act.

     “Agreement” means this Agreement and Plan of Merger.

     “Authorized and Reserved Shares” is defined in Section 9.4.

     “Average Share Price” means, for any period, the average of the Daily Share Prices for the
consecutive Trading Days within such period.

     “Bankruptcy Laws and Equitable Principles” is defined in Section 2.2.

     “Benefit Plan” means any “employee benefit plan,” in each case whether written or oral,
insured or not, informal or formal, within the meaning of Section 3(3) of ERISA or any other bonus,
profit sharing, deferred compensation, change in control, incentive compensation, Company Stock
Plan, performance, retirement, vacation, severance or termination, disability, death benefit,
employment, consulting, independent contractor, director, retention, hospitalization, material
fringe benefit, medical, dental, vision or other material plan, program, policy, arrangement or
Contract that provides benefits to or has covered any Company Personnel at any time during the one
(1) year period prior to and ending on the Closing Date or for which the Company could reasonably
be expected to have any current liability, and any defined benefit Pension Plan or multiemployer
plan (as defined in Section 3(37) of ERISA that was frozen or terminated in the last five (5)
years.

     “Business Day” means any day other than (i) a Saturday or Sunday or (ii) a day on which
banking institutions located in Boston, Massachusetts, are permitted or required by Law, executive
order or decree of a Governmental Entity to remain closed.

     “Buyer” is defined in the preamble of this Agreement.

     “Buyer Common Stock” means Buyer common stock, par value $0.01 per share.

     “Buyer Indemnified Party” and “Buyer Indemnified Parties” are defined in Section 8.1(a).

     “Buyer SEC Documents” is defined in Section 4.5.

43

 

     “California Litigation Amount” is defined in Section 8.1(a)(iii).

     “Capital Stock” means any capital stock or share capital of, other voting securities of, other
equity interest in, or right to receive profits, losses or distributions of, any Person.

     “Change of Control” means a change in the equity ownership of the Company as a result of a
stock purchase and sale, a merger, combination or similar transaction as a result of which the
holders of voting securities of the Company immediately prior to such transaction do not hold
securities having a majority of the combined voting power of all voting securities immediately
following such transaction.

     “Claim Notice” is defined in Section 8.2(a).

     “Closing” is defined in Section 1.2.

     “Closing Consideration” is defined in Section 1.8(a)(i).

     “Closing Date” means the date on which the Closing occurs.

     “Code” means the Internal Revenue Code of 1986.

     “Colorado Acts” is defined in the Preamble.

     “Colorado Statement of Merger” is defined in the preamble of this Agreement.

     “Company” is defined in the preamble of this Agreement.

     “Company 401(k) Plan” is defined in Section 6.9.

     “Company Certificate” is defined in Section 1.8(b).

     “Company Common Stock” is defined in Section 2.4(a).

     “Company Intellectual Property” means all Intellectual Property that is owned by or licensed
to the Company.

     “Company knowledge”, “knowledge of the Company” or words to that effect mean the actual
knowledge after reasonable investigation of George Burnett, Norman Blome, William Ojile or Julie
Smith

     “Company Personnel” means any former or current director, officer, employee, independent
contractor or consultant of the Company.

     “Company Stock Plan” means any stock option plan or other stock or equity-related plan of the
Company.

     “Constitutive Documents” means (i) with respect to a Person that is a corporation, such
Person’s certificate or articles of incorporation and by-laws, (ii) with respect to a Person that
is a limited liability company, such Person’s certificate of formation and operating or limited
liability

44

 

company agreement, (iii) with respect to a Person that is a partnership, such Person’s
partnership agreement, (iv) with respect to a Person that is a trust, such Person’s trust
instrument or agreement and (v) with respect to a Person that is a legal entity (including one of
the type described in clauses (i) through (iv)), any constitutive document of such entity or other
document or Contract analogous to those described in clauses (i) through this clause (v).

     “Contract” means any written loan or credit agreement, bond, debenture, note, mortgage,
indenture, guarantee, lease or other contract, commitment, agreement, instrument, obligation,
undertaking, concession, franchise, license or legally binding arrangement or understanding.

     “Controlling Party” is defined in Section 8.2(a).

     “Copyright” means any registered copyright (i) licensed from any third party (other than
“shrink-wrap” software) or (ii) assigned, registered or applied for.

     “Daily Share Price” means, for any Trading Day, the closing prices on the Nasdaq Global
Market, as reported by Nasdaq (the “NASDAQ”), of Buyer Common Stock for that day or, in case no
such reported sale takes place on such day, the average of the reported closing bid and asked
prices regular way on such day, in either case on the NASDAQ Global Market or, if such stock is not
listed or admitted to trading on the NASDAQ Global Market, on the principal national securities
exchange on which such stock is then listed or admitted to trading, or, if such stock is not then
listed or admitted to trading on any national securities exchange, the average of the closing bid
and asked prices on such day in the over-the-counter market as furnished by any New York Stock
Exchange member firm selected from time to time by the Buyer and reasonably acceptable to Parent.

     “Damages” is defined in Section 8.1(a).

     “Damage Threshold” is defined in Section 8.5(b).

     “Direct Claim” is defined in Section 8.2(b).

     “Disclosure Schedule” means a schedule of exceptions to the representations and warranties of
the Company set forth in Article 2, delivered contemporaneously with this Agreement.

     “Dispute Notice” is defined in Section 8.2(c).

     “Effective Time” means the time at which the Merger becomes effective pursuant to Section 1.4.

     “Environmental Law” mans any Law relating to: (A) the protection, investigation or restoration
of the environment, health, safety or natural resources, (B) the handling, use, presence, disposal,
release or threatened release of any Hazardous Material or (C) noise, odor, indoor air, employee
exposure, wetlands, pollution, contamination or any injury or threat of injury to persons or
property relating to any Hazardous Material.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

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     “Escrow Agent” means the Escrow Agent under the Escrow Agreement.

     “Escrow Agreement” is defined in Section 7.5.

     “Escrow Amount” is defined in Section 1.8(b).

     “Escrow Release Date” is defined in Section 1.10(a).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules and
regulations of the SEC thereunder.

     “Expected Claim Notice” is defined in Section 8.3.

     “Financial Statements” is defined in Section 2.8(a).

     “Final Determination Sixty-Day Average” means the Average Share Price for the sixty (60)
Trading Days ending two (2) Trading Days prior to the date of the Final Transaction Value
Determination.

     “Final Determination Ten-Day Average” means the Average Share Price for the ten (10) Trading
Days ending two (2) Trading Days prior to the date of the Final Transaction Value Determination.

     “Final Transaction Value Determination” is defined in Sections 1.9(c).

     “First Anniversary Sixty-Day Average” means the Average Share Price during the sixty (60)
Trading Days ending two (2) Trading Days prior to the first anniversary of the Closing Date.

     “First Anniversary Transaction Value” means (i) the aggregate value of the shares of Buyer
Common Stock representing the portion of the Closing Consideration paid in shares of Buyer Common
Stock, based on the First Anniversary Sixty-Day Average, plus (ii) $4,600,000.

     “Franchise Fees” is defined in Section 6.3(b).

     “GAAP” means United States generally accepted accounting principles, consistently applied.

     “Governmental Entity” means any nation, state, province, county, city or political subdivision
and any official, agency, arbitrator, authority, court, department, commission, board, bureau,
instrumentality or other governmental or regulatory authority of any thereof, whether domestic or
foreign.

     “Hazardous Material” means (i) any substance that is listed, classified or regulated pursuant
to any Environmental Law; (ii) any petroleum, waste oil, crude oil, asbestos, urea formaldehyde or
polychlorinated byphenyl; (iii) any waste, gas or other substance or material that is explosive or
radioactive; (iv) any “hazardous chemical”, pollutant”, contaminant”, “hazardous waste”, “hazardous
chemical” or “toxic chemical” as designated, listed or defined in

46

 

statute or regulation; and (v)
any other substance which may be the subject of regulatory action by any Governmental Entity in
connection with any Environmental Law.

     “Indebtedness” of any Person means, without duplication, (i) all indebtedness of such Person
for borrowed money, with respect to deposits or advances of any kind or for the deferred purchase
price of property or services (other than current trade liabilities incurred in the Ordinary Course
and payable in accordance with customary practices and not more than 90 days past due), (ii) all
obligations of such Person evidenced by bonds, debentures, notes or similar instruments, (iii) all
obligations of such Person upon which interest charges are customarily paid, (iv) all obligations
of such Person under conditional sale or other title retention agreements relating to property or
assets purchased by such Person, (v) all obligations of such Person issued or assumed as the
deferred purchase price of property or services, (vi) all Indebtedness of others secured by (or for
which the holder of such Indebtedness has an existing right, contingent or otherwise, to be secured
by) any Lien or other claim on property owned or acquired by such Person, whether or not the
obligations secured thereby have been assumed, (vii) all guarantees by such Person of Indebtedness
of others, (viii) all capital lease obligations of such Person, (ix) all obligations of such Person
in respect of interest rate protection agreements, foreign currency exchange agreements, caps or
collar agreements or other interest or exchange rate hedging arrangements either generally or under
specific contingencies, (x) all obligations of such Person as an account party in respect of
letters of credit and banker’s acceptances, (xi) all obligations of such Person consisting of
overdrafts (e.g., cash float reflected as a negative on the cash line) and (xii) all obligations of
such Person pursuant to any deferred compensation agreements.

     “Indemnified Party” means any Person or Persons entitled to indemnification under this
Agreement.

     “Indemnifying Party” means any Person or Persons required to provide indemnification under
this Agreement.

     “Intellectual Property” means any (i) Patents, (ii) Marks, (iii) Copyrights, (iv) trade
secrets, confidential information or know-how or (v) other intellectual property or proprietary
rights.

     “Investment Representation Letter” is defined in Section 5.2(j).

     “IRS” means the Internal Revenue Service.

     “Judgment” means any judgment, order or decree.

     “Law” means any constitution, act, statute, law, ordinance, treaty, rule or regulation.

     “Leased Property” is defined in Section 2.12(b).

     “Legal Proceeding” means any action, suit, proceeding, claim, arbitration or investigation
before any Governmental Entity or before any arbitrator or mediator or similar party, or any
investigation or review by any Governmental Entity.

     “Legal Restraint” is defined in Section 5.1(b).

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     “Lien” means any lien, pledge, claim, charge, mortgage, encumbrance or other security interest
of any kind, whether arising by Contract or by operation of Law.

     “Mark” means any trademark, trade name, trade dress, service mark or domain name.

     “Material Adverse Change” means any change, circumstance, development, state of facts, event
or effect (i) that has had or would reasonably be expected to have a material adverse change or
effect (taken alone or in the aggregate with any other adverse change or effect) in or with respect
to the business, properties, assets or financial condition of the party to whom the condition is
attributed or (ii) that would reasonably be expected to prevent or materially impede, interfere
with, hinder or delay the consummation of the Merger or the other transactions contemplated by this
Agreement; in each case excluding effects resulting from (i) the announcement or pendency of the
Merger, (ii) general economic conditions, (iii) conditions affecting the education and test
preparation industry generally and, (iv) actions taken by any Person at the specific request or
with the agreement or consent of Company (if such Person is Buyer or Merger Sub), Buyer (if such
Person is the Company or Parent) or Surviving Corporation (if such Person is Buyer, Company or
Parent).

     “Material Contract” is defined in Section 2.13(a).

     “Maximum Additional Consideration” is defined in Section 1.9(a).

     “Merger” is defined in the preamble of this Agreement.

     “Merger Consideration” is defined in Section 1.8(a)(i).

     “Merger Sub” is defined in the preamble of this Agreement.

     “Minimum Transaction Value” means $7.50 per each share of Buyer Common Stock constituting the
Closing Consideration, plus $0.61484996.

     “Most Recent Balance Sheet” is defined in Section 2.8(a).

     “Most Recent Balance Sheet Date” means December 31, 2007.

     “Most Recent Yearend Financials Date” means September 30, 2007.

     “NASDAQ” is defined in the definition of Daily Share Price.

     “Non-Controlling Party” is defined in Section 8.2(a).

     “Ordinary Course” means the ordinary course of business, in substantially the same manner as
presently conducted and consistent with past practice.

     “Other Persons” is defined in Section 7.2.

     “Parent” is defined in the preamble to this Agreement.

48

 

     “Parent Change of Control” means a change in the equity ownership of the Parent as a result of
a stock purchase and sale, a merger, combination or similar transaction as a result of which the
holders of voting securities of the Parent immediately prior to such transaction do not hold
securities having a majority of the combined voting power of all voting securities immediately
following such transaction or a sale of all or substantially all of the assets of Parent.

     “Party” means a party to this Agreement.

     “Patent” means any United States or foreign patent, any application for a United States or
foreign patent, or any continuation, continuation-in-part, division, renewal, extension (including
any supplemental protection certificate), reexamination or reissue thereof.

     “Pension Plan” means any “employee pension benefit plan”, as defined in Section 3(2) of ERISA.

     “Permit” means any federal, state or local, domestic or foreign, governmental consent,
approval, order, authorization, certificate, filing, notice, permit, concession, registration,
franchise, license or right.

     “Permitted Liens” means the following (i) any Lien set forth on Section 2.5(a)(ii) of the
Disclosure Schedule, (ii) any Lien created pursuant to this Agreement, (iii) any Lien for Taxes
not yet due and payable or that the Company is contesting in good faith, (iv) statutory liens of
landlords, liens of carriers, warehousepersons, mechanics and material persons incurred in the
Ordinary Course for sums not yet due and payable or that the Company is contesting in good faith,
(v) liens incurred or deposits made in connection with workers’ compensation, unemployment
insurance and other similar types of social security programs or to secure the performance of
tenders, statutory obligations, surety and appeal bonds, bids, leases, government contracts,
performance and return of money bonds and similar obligations, in each case in the ordinary course
of business, consistent with past practice, and (vi) Liens which do not interfere with the ordinary
conduct of the business of the Company.

     “Person” means an individual, corporation, partnership, limited liability company, joint
venture, association, trust, Governmental Entity, unincorporated organization or other entity.

     “Pre-Closing Average” means the Average Share Price during the period starting with the date
on which this Agreement is entered into (or the next day thereafter if such date is not a Trading
Day) and ending two (2) Trading Days prior to the earlier of (i) the Closing Date agreed upon in
writing by Buyer and Parent in accordance with Section 1.2 and (ii) March 14, 2008.

     “Pre-Closing Tax Return” is defined in Section 6.4(a).

     “Registration Rights Agreement” is defined in Section 5.3(g).

     “Release Date Indemnification Amount” means, on a given date, the sum, as of such date and
without duplication, of (i) the aggregate amount to which Buyer is entitled to indemnification
pursuant to Article 8 and (ii) the aggregate amount of any asserted but unresolved claims for
Damages as set forth in Claim Notices provided to Parent pursuant to the provisions of Article 8.

49

 

     “Representative Persons” is defined in Section 7.2.

     “Representatives” means with respect to a Person, such Person’s legal, financial, internal and
independent accounting and other advisors and representatives.

     “Reserved Amount” is defined in Section 9.2.

     “Response Period” is defined in Section 8.2(b).

     “Restricted Stock” means any of the Company Capital Stock that is subject to a right of
repurchase or redemption by the Company, subject to forfeiture back to the Company and/or subject
to transfer or lock-up restrictions other than those imposed by federal and state securities Laws.

     “Schedule” means Disclosure Schedule for the purposes of Article 2.

     “SEC” means the United States Securities and Exchange Commission.

     “Securities Act” means the Securities Act of 1933, as amended, and the rules and regulations
of the SEC thereunder.

     “Subsidiary” means, with respect to any Person, another Person (i) of which 50% or more of any
class of Capital Stock are owned or controlled, directly or indirectly, by such first Person or
(ii) of which such first Person is a general partner.

     “Surviving Corporation” is defined in Section 1.1.

     “Tax” means: (i) any United States federal, state, local and foreign income, profits,
franchise, license, capital, transfer, ad valorem, wage, severance, occupation, import, custom,
gross receipts, payroll, sales, employment, use, stamp, alternative or add on minimum,
environmental, withholding and any other tax, duty, assessment or governmental tax charge of any
kind whatsoever, imposed or required to be withheld by any taxing authority; (ii) any interest,
additions to tax, or penalties applicable or related thereto, whether disputed or not; (iii) any
amount described in clause (i) or clause (ii) above for which a Person is liable by reason of
Treasury Regulations Section 1.1502-6, as a transferee or successor, or by contract, indemnity or
otherwise.

     “Tax-Free Reorganization” is defined in Section 7.4.

     “Tax Return” means any return, declaration, report, claim for refund, or information return or
statement or other form relating to Taxes, including any schedule or attachment thereto, and
including any amendment thereof.

     “Third Party Claim” means any suit, proceeding, claim or demand by a Person other than a
Person from which indemnification may be sought under Article 8.

     “Trading Day” or “full Trading Day” means any day on which NASDAQ is open and available for at
least five (5) hours for the trading of securities.

50

 

     “Transfer” means any sale, offer to sell, contract to sell, short sale, pledge, sale of an
option or contract to purchase, purchase of an option or contract to sale, grant of any option,
right or warrant to purchase, or any other transfer or disposition.

     “Transition Services Agreement” is defined in Section 5.2(m).

     “Transition Services Damages” is defined in Section 8.1(a)(ii).

     “Treasury Regulations” means the regulations promulgated under the Code.

     “TSI 401(k) Plan” means the Company’s 401(k) plan that is in effect as of the date of this
Agreement and that Parent and the Company are covenanting will be terminated prior to the Closing
Date pursuant to Section 6.9.

     Section 11.2. Descriptive Headings; Certain Interpretations.

          (a) Headings. The table of contents and headings contained in this Agreement are for
reference purposes only and shall not control or affect the meaning or construction of this
Agreement.

          (b) Interpretations. Except where expressly stated otherwise in this Agreement, the
following rules of interpretation apply to this Agreement: (i) “or” is not exclusive and
“include”, “includes” and “including” are not limiting; (ii) “hereof”, “hereto”, “hereby”, “herein”
and “hereunder” and words of similar import when used in this Agreement refer to this Agreement as
a whole and not to any particular provision of this Agreement; (iii) “date hereof” refers to the
date of this Agreement; (iv) “extent” in the phrase “to the extent” means the degree to which a
subject or other thing extends, and such phrase does not mean simply “if”; (v) definitions
contained in this Agreement are applicable to the singular as well as the plural forms of such
terms; (vi) references to an agreement or instrument mean such agreement or instrument as from time
to time amended, modified or supplemented; (vii) references to a Person are also to its permitted
successors and assigns; (viii) references to an “Article”, “Section”, “Subsection”, “Exhibit” or
“Schedule” refer to an Article of, a Section or Subsection of, or an Exhibit or Schedule to, this
Agreement; (ix) words importing the masculine gender include the feminine or neuter and, in each
case, vice versa; and (x) references to a Law include any amendment or modification to such Law and
any rules or regulations issued thereunder, whether such amendment or modification is made, or
issuance of such rules or regulations occurs, before or after the date of this Agreement.

ARTICLE 12

MISCELLANEOUS

     Section 12.1. Notices. All notices, requests, claims, demands, waivers and other
communications under this Agreement shall be in writing and shall be by facsimile, courier services
or personal delivery to the following addresses, or to such other addresses as shall be designated
from time to time by a Party in accordance with this Section 12.1:

          (a) if to Buyer, Merger Sub or, following the Closing, the Surviving Corporation:

51

 

The Princeton Review, Inc.

111 Speen Street, Suite 550

Framingham, MA 01701

Attention: General Counsel

Facsimile No.: (508) 663-5115

with a copy to:

Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.

One Financial Center

Boston, MA 02111

Attention: Richard R. Kelly, Esq.

Facsimile No.: (617) 542-2241

          (b) if to Parent or, prior to the Closing, the Company:

Alta Colleges, Inc.

2000 S. Colorado Blvd.,

Suite 2-800

Denver, CO 80222

Attention: Bill Ojile

Facsimile No.: (303) 691-5702

with a copy to:

Goodwin Procter LLP

559 Lexington Avenue

New York, NY 10022

Attention: Richard E. Floor, Esq.

Facsimile No.: (212) 355-3333

          All notices and communications under this Agreement shall be deemed to have been duly given
(x) when delivered by hand, if personally delivered, (y) one Business Day after when delivered to a
courier, if delivered by commercial one-day overnight courier service or (z) when sent, if sent by
facsimile, with an acknowledgment of sending being produced by the sending facsimile machine.

     Section 12.2. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned, in whole or in part, by operation of Law or otherwise by
any of the Parties without the prior written consent of the other Parties, except that Merger Sub
may assign, in its sole discretion, any of or all its rights, interests and obligations under this
Agreement to Buyer, but no such assignment shall relieve Merger Sub of any of its obligations
hereunder. Subject to the preceding sentence, this Agreement shall be binding upon, inure to the
benefit of and be enforceable by, the Parties and their respective successors and assigns.

     Section 12.3. Specific Enforcement. The Parties agree that, subject to Section 10.2,
irreparable damage would occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms or were otherwise breached. It is

52

 

accordingly
agreed that, subject to Section 10.2, the Parties shall be entitled to an injunction or injunctions
to prevent breaches of this Agreement and to enforce specifically the terms and provisions of this
Agreement in the Court of Chancery of the State of Delaware, New Castle County, this being in
addition to any other remedy to which they are entitled at Law, in equity or otherwise.

     Section 12.4. Amendment and Waiver. Any amendment of this Agreement shall be subject
to any restrictions contained in the Colorado Acts. No amendment or waiver of any provision of
this Agreement shall be valid unless the same shall be in writing and signed by Buyer, Parent and,
until the Effective Time, the Company. No waiver of any right or remedy hereunder shall be valid
unless the same shall be in writing and signed by the party giving such waiver. No waiver by any
party with respect to any default, misrepresentation or breach of warranty or covenant hereunder
shall be deemed to extend to any prior or subsequent default, misrepresentation or breach of
warranty or covenant hereunder or affect in any way any rights arising by virtue of any prior or
subsequent such occurrence.

     Section 12.5. Entire Agreement. This Agreement (including the documents referred to
herein) constitutes the entire agreement among the Parties and supersedes any prior understandings,
agreements or representations by or among the Parties, written or oral, with respect to the subject
matter hereof.

     Section 12.6. No Third-Party Beneficiaries; Obligations Joint and Several. This
Agreement is for the sole benefit of the Parties and their permitted successors and assigns and
nothing herein expressed or implied shall give or be construed to give to any Person, other than
the Parties and such successors and assigns, any legal or equitable rights hereunder. The
obligations of Buyer and Merger Sub hereunder are and shall be joint and several.

     Section 12.7. Counterparts. This Agreement may be executed in any number of
counterparts and by the Parties in separate counterparts, each of which when so executed shall be
deemed to be an original and all of which taken together shall constitute one and the same
agreement.

     Section 12.8. Governing Law. This Agreement shall be governed by, and construed in
accordance with, the substantive law of the State of New York, regardless of the laws that might
otherwise govern under applicable principles of conflicts of laws thereof, except insofar as
matters relating to the Merger are subject to the Colorado Acts.

     Section 12.9. Severability. Any term or provision of this Agreement that is invalid
or unenforceable in any situation in any jurisdiction shall not affect the validity or
enforceability of the remaining terms and provisions hereof or the validity or enforceability of
the offending term or provision in any other situation or in any other jurisdiction.

     Section 12.10. Submission to Jurisdiction; Waiver of Jury Trial. Subject to Section
8.2(e), each of the Parties (a) submits to the jurisdiction of any state or federal court sitting
in the Southern District of New York in any action or proceeding arising out of or relating to this
Agreement, (b) agrees that all claims in respect of such action or proceeding may be heard and
determined in any such court, and (c) agrees not to bring any action or proceeding arising out of

53

 

or relating to this Agreement in any other court. Each of the Parties waives any defense of
inconvenient forum to the maintenance of any action or proceeding so brought and waives any bond,
surety or other security that might be required of any other Party with respect thereto. Any Party
may make service on another Party by sending or delivering a copy of the process to the Party to be
served at the address and in the manner provided for the giving of notices in Section 12.1.
Nothing in this Section 12.10, however, shall affect the right of any Party to serve legal process
in any other manner permitted by law. IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATED TO THE
TRANSACTIONS CONTEMPLATED HEREBY, THE PARTIES HERETO IRREVOCABLY CONSENT TO TRIAL WITHOUT A JURY.

     Section 12.11. Construction.

          (a) The language used in this Agreement shall be deemed to be the language chosen by the
Parties to express their mutual intent, and no rule of strict construction shall be applied against
any Party.

          (b) Any reference to any federal, state, local or foreign statute or law shall be deemed also
to refer to all rules and regulations promulgated thereunder, unless the context requires
otherwise.

     Section 12.12. Survival. All covenants and obligations of the Parties hereto which by
their explicit terms or by implication are to be performed subsequent to or are to otherwise
survive the Closing shall survive the Closing and the consummation of the Merger and shall not be
extinguished, but shall instead remain in full force and effect thereafter and otherwise in
accordance with or as contemplated by the terms hereof, notwithstanding the Closing or the
consummation of the Merger.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

54

 

     IN WITNESS WHEREOF, the Parties have caused this Agreement to be signed by their respective officers thereunto duly authorized as
of the date first written above.

	 	 	 	 	 
	 	THE PRINCETON REVIEW, INC.

 	 
	 	By:  	 /s/
STEPHEN RICHARDS	 
	 	 	Name: 	Stephen Richards	 
	 	 	Title:  	Chief Operating Officer/Chief Financial Officer	 
	 
	 	TPR/TSI MERGER COMPANY, INC.

 	 
	 	By:  	 /s/
STEPHEN RICHARDS	 
	 	 	Name:  	 Stephen Richards	 
	 	 	Title:  	 President	 
	 
	 	ALTA COLLEGES, INC.

 	 
	 	By:  	 /s/
WILLIAM M. OJILE, JR.	 
	 	 	Name:  	William M. Ojile, Jr.	 
	 	 	Title:  	Senior Vice President, Chief Legal and
Compliance Officer	 
	 
	 	TEST SERVICES, INC.

 	 
	 	By:  	 /s/
WILLIAM M. OJILE, JR.	 
	 	 	Name:  	 William M. Ojile, Jr.	 
	 	 	Title:  	 Secretary	 
	 

2EX-4.1

 

Exhibit 4.1

Execution Copy

 

INDENTURE

between

DAIMLERCHRYSLER AUTO TRUST 2008-A,

as Issuer

and

DEUTSCHE BANK TRUST COMPANY AMERICAS,

as Indenture Trustee

Dated as of February 1, 2008

$1,507,400,000

 

 

 

Table of Contents

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I

	Definitions and Incorporation by Reference

	 
	 	 	 	 
	SECTION 1.01. Definitions
	 	 	2	 
	SECTION 1.02. Incorporation by Reference of Trust Indenture Act
	 	 	12	 
	SECTION 1.03. Rules of Construction
	 	 	13	 
	 
	 	 	 	 
	ARTICLE II

	The Notes

	 
	 	 	 	 
	SECTION 2.01. Form
	 	 	13	 
	SECTION 2.02. Execution, Authentication and Delivery
	 	 	14	 
	SECTION 2.03. Temporary Notes
	 	 	15	 
	SECTION 2.04. Limitations on Transfer of the Class A-1 Notes, Class B
Notes, Class C Notes and the Class D Notes
	 	 	15	 
	SECTION 2.05. Registration; Registration of Transfer and Exchange
	 	 	16	 
	SECTION 2.06. Mutilated, Destroyed, Lost or Stolen Notes
	 	 	17	 
	SECTION 2.07. Persons Deemed Owner
	 	 	18	 
	SECTION 2.08. Payment of Principal and Interest; Defaulted Interest
	 	 	18	 
	SECTION 2.09. Cancellation
	 	 	20	 
	SECTION 2.10. Release of Collateral
	 	 	20	 
	SECTION 2.11. Book-Entry Notes; Certificated Notes
	 	 	20	 
	SECTION 2.12. Notices to Clearing Agency
	 	 	21	 
	SECTION 2.13. Definitive Notes
	 	 	21	 
	SECTION 2.14. Tax Treatment
	 	 	22	 
	SECTION 2.15. Representations and Warranties as to the Security Interest of
the Indenture Trustee in the Receivables
	 	 	22	 
	SECTION 2.16. Interest Calculation Agent
	 	 	23	 
	 
	 	 	 	 
	ARTICLE III

	Covenants

	 
	 	 	 	 
	SECTION 3.01. Payment of Principal and Interest and Other Amounts
	 	 	23	 
	SECTION 3.02. Maintenance of Office or Agency
	 	 	24	 
	SECTION 3.03. Money for Payments To Be Held in Trust
	 	 	24	 
	SECTION 3.04. Existence
	 	 	25	 
	SECTION 3.05. Protection of Trust Estate
	 	 	25	 
	SECTION 3.06. Opinions as to Trust Estate
	 	 	26	 
	SECTION 3.07. Performance of Obligations; Servicing of Receivables
	 	 	26	 
	SECTION 3.08. Negative Covenants
	 	 	28	 
	SECTION 3.09. Annual Statement as to Compliance
	 	 	29	 
	SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms
	 	 	29	 
	SECTION 3.11. Successor or Transferee
	 	 	30	 
	SECTION 3.12. No Other Business
	 	 	31	 

i 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 3.13. No Borrowing
	 	 	31	 
	SECTION 3.14. Servicer’s Obligations
	 	 	31	 
	SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities
	 	 	31	 
	SECTION 3.16. Capital Expenditures
	 	 	31	 
	SECTION 3.17. Removal of Administrator
	 	 	31	 
	SECTION 3.18. Restricted Payments
	 	 	31	 
	SECTION 3.19. Notice of Events of Default
	 	 	31	 
	SECTION 3.20. Further Instruments and Acts
	 	 	32	 
	SECTION 3.21. Required Hedges
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IV

	Satisfaction and Discharge

	 
	 	 	 	 
	SECTION 4.01. Satisfaction and Discharge of Indenture
	 	 	33	 
	SECTION 4.02. Application of Trust Money
	 	 	34	 
	SECTION 4.03. Repayment of Moneys Held by Paying Agent
	 	 	34	 
	 
	 	 	 	 
	ARTICLE V

	Remedies

	 
	 	 	 	 
	SECTION 5.01. Events of Default
	 	 	35	 
	SECTION 5.02. Acceleration of Maturity; Rescission and Annulment
	 	 	36	 
	SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture Trustee
	 	 	36	 
	SECTION 5.04. Remedies; Priorities
	 	 	38	 
	SECTION 5.05. Optional Preservation of the Receivables
	 	 	41	 
	SECTION 5.06. Limitation of Suits
	 	 	41	 
	SECTION 5.07. Unconditional Rights of Noteholders To Receive Principal and Interest
	 	 	42	 
	SECTION 5.08. Restoration of Rights and Remedies
	 	 	42	 
	SECTION 5.09. Rights and Remedies Cumulative
	 	 	42	 
	SECTION 5.10. Delay or Omission Not a Waiver
	 	 	42	 
	SECTION 5.11. Control by Controlling Class
	 	 	42	 
	SECTION 5.12. Waiver of Past Defaults
	 	 	43	 
	SECTION 5.13. Undertaking for Costs
	 	 	43	 
	SECTION 5.14. Waiver of Stay or Extension Laws
	 	 	44	 
	SECTION 5.15. Action on Notes
	 	 	44	 
	SECTION 5.16. Performance and Enforcement of Certain Obligations
	 	 	44	 
	 
	 	 	 	 
	ARTICLE VI

	The Indenture Trustee

	 
	 	 	 	 
	SECTION 6.01. Duties of Indenture Trustee
	 	 	45	 
	SECTION 6.02. Rights of Indenture Trustee
	 	 	46	 
	SECTION 6.03. Individual Rights of Indenture Trustee
	 	 	46	 
	SECTION 6.04. Indenture Trustee’s Disclaimer
	 	 	46	 
	SECTION 6.05. Notice of Defaults
	 	 	46	 

ii 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 6.06. Reports by Indenture Trustee to Holders of Senior Notes
	 	 	47	 
	SECTION 6.07. Compensation and Indemnity
	 	 	47	 
	SECTION 6.08. Replacement of Indenture Trustee
	 	 	47	 
	SECTION 6.09. Successor Indenture Trustee by Merger
	 	 	48	 
	SECTION 6.10. Appointment of Co-Indenture Trustee or Separate Indenture Trustee
	 	 	49	 
	SECTION 6.11. Eligibility; Disqualification
	 	 	50	 
	SECTION 6.12. Preferential Collection of Claims Against Issuer
	 	 	51	 
	SECTION 6.13. Pennsylvania Motor Vehicle Sales Finance Act Licenses
	 	 	51	 
	 
	 	 	 	 
	ARTICLE VII

	Noteholders’ Lists and Reports

	 
	 	 	 	 
	SECTION 7.01. Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders
	 	 	51	 
	SECTION 7.02. Preservation of Information; Communications to Noteholders
	 	 	51	 
	SECTION 7.03. Reports by Issuer
	 	 	51	 
	SECTION 7.04. Reports by Indenture Trustee
	 	 	52	 
	 
	 	 	 	 
	ARTICLE VIII

	Accounts, Disbursements and Releases

	 
	 	 	 	 
	SECTION 8.01. Collection of Money
	 	 	52	 
	SECTION 8.02. Deposit Account
	 	 	53	 
	SECTION 8.03. General Provisions Regarding Accounts
	 	 	54	 
	SECTION 8.04. Release of Trust Estate
	 	 	55	 
	SECTION 8.05. Opinion of Counsel
	 	 	56	 
	 
	 	 	 	 
	ARTICLE IX

	Supplemental Indentures

	 
	 	 	 	 
	SECTION 9.01. Supplemental Indentures Without Consent of Noteholders
	 	 	56	 
	SECTION 9.02. Supplemental Indentures with Consent of Noteholders
	 	 	57	 
	SECTION 9.03. Execution of Supplemental Indentures
	 	 	59	 
	SECTION 9.04. Effect of Supplemental Indenture
	 	 	59	 
	SECTION 9.05. Conformity with Trust Indenture Act
	 	 	59	 
	SECTION 9.06. Reference in Notes to Supplemental Indentures
	 	 	59	 
	 
	 	 	 	 
	ARTICLE X

	Redemption of Notes

	 
	 	 	 	 
	SECTION 10.01. Redemption
	 	 	60	 
	SECTION 10.02. Form of Redemption Notice
	 	 	60	 
	SECTION 10.03. Notes Payable on Redemption Date
	 	 	60	 
	 
	 	 	 	 
	ARTICLE XI

	Miscellaneous

	 
	 	 	 	 
	SECTION 11.01. Compliance Certificates and Opinions, etc
	 	 	61	 

iii 

 

	 	 	 	 	 
	 	 	Page	 
	SECTION 11.02. Form of Documents Delivered to Indenture Trustee
	 	 	62	 
	SECTION 11.03. Acts of Noteholders
	 	 	63	 
	SECTION 11.04. Notices, etc., to Indenture Trustee, Issuer and Rating Agencies
	 	 	64	 
	SECTION 11.05. Notices to Noteholders; Waiver
	 	 	64	 
	SECTION 11.06. Alternate Payment and Notice Provisions
	 	 	65	 
	SECTION 11.07. Conflict with Trust Indenture Act
	 	 	65	 
	SECTION 11.08. Effect of Headings and Table of Contents
	 	 	65	 
	SECTION 11.09. Successors and Assigns
	 	 	65	 
	SECTION 11.10. Separability
	 	 	66	 
	SECTION 11.11. Benefits of Indenture
	 	 	66	 
	SECTION 11.12. Legal Holidays
	 	 	66	 
	SECTION 11.13. GOVERNING LAW
	 	 	66	 
	SECTION 11.14. Counterparts
	 	 	66	 
	SECTION 11.15. Recording of Indenture
	 	 	66	 
	SECTION 11.16. Trust Obligation
	 	 	66	 
	SECTION 11.17. No Petition
	 	 	67	 
	SECTION 11.18. Inspection
	 	 	67	 
	SECTION 11.19. Subordination Agreement.
	 	 	67	 
	SECTION 11.20. Execution of Financing Statements
	 	 	67	 

	 	 	 	 	 
	SCHEDULE A

	 	-
	 	Schedule of Receivables
	EXHIBIT A-1

	 	-
	 	Form of Class A-1 Note
	EXHIBIT A-2a

	 	-
	 	Form of Class A-2a Note
	EXHIBIT A-2b

	 	-
	 	Form of Class A-2b Note
	EXHIBIT A-3a

	 	-
	 	Form of Class A-3a Note
	EXHIBIT A-3b

	 	-
	 	Form of Class A-3b Note
	EXHIBIT A-4

	 	-
	 	Form of Class A-4 Note
	EXHIBIT B

	 	-
	 	Form of Class B Note
	EXHIBIT C

	 	-
	 	Form of Class C Note
	EXHIBIT D

	 	-
	 	Form of Class D Note
	EXHIBIT E

	 	-
	 	Form of Note Depository Agreement
	EXHIBIT F

	 	-
	 	Form of Hedge
	EXHIBIT G

	 	-
	 	Form of Hedge Assignment

iv 

 

     INDENTURE dated as of February 1, 2008, between DAIMLERCHRYSLER AUTO TRUST 2008-A, a Delaware
statutory trust (the “Issuer”), and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking
corporation, as trustee and not in its individual capacity (the “Indenture Trustee”).

     Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Issuer’s Class A-1 3.15195% Asset Backed Notes (the “Class A-1
Notes”), Class A-2a 3.40% Asset Backed Notes (the “Class A-2a Notes”), Class A-2b Floating Rate
Asset Backed Notes (the “Class A-2b Notes”), Class A-3a 3.70% Asset Backed Notes (the “Class A-3a
Notes”), Class A-3b Floating Rate Asset Backed Notes (the “Class A-3b Notes”), Class A-4 4.48%
Asset Backed Notes (the “Class A-4 Notes” and, together with the Class A-1 Notes, the Class A-2a
Notes, the Class A-2b Notes, the Class A-3a Notes and the Class A-3b Notes, the “Class A Notes”),
Class B 5.57% Asset Backed Notes (the “Class B Notes”), Class C 5.75% Asset Backed Notes (the
“Class C Notes”) and Class D Asset Backed Notes (the “Class D Notes” and, together with the Class A
Notes, the Class B Notes and the Class C Notes, the “Notes”):

GRANTING CLAUSE

     The Issuer hereby Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee
for the benefit of the Holders of the Notes and the Hedge Counterparties (the “Secured Parties”),
all of the Issuer’s right, title and interest in and to (a) the Receivables and all moneys received
thereon after January 31, 2008; (b) the security interests in the Financed Vehicles granted by
Obligors pursuant to the Receivables and any other interest of the Issuer in such Financed
Vehicles; (c) any proceeds with respect to the Receivables from claims on any physical damage,
credit life or disability insurance policies covering Financed Vehicles or Obligors; (d) any
proceeds from recourse to Dealers with respect to Receivables with respect to which the Servicer
has determined in accordance with its customary servicing procedures that eventual payment in full
is unlikely; (e) any Financed Vehicle that shall have secured a Receivable and that shall have been
acquired by or on behalf of the Seller, the Servicer or the Issuer; (f) all funds on deposit from
time to time in the Deposit Account (including any subaccount thereof), including the Reserve
Account Initial Deposit, and in all investments and proceeds thereof (including all income thereon)
(provided that the Hedge Counterparty shall have no rights in, to or under the Note Principal
Distribution Account or any amounts deposited therein or credited thereto); (g) the Sale and
Servicing Agreement (including the Issuer’s right to cause the Seller to repurchase Receivables
from the Issuer under certain circumstances described therein); (h) the Hedges, including all
Hedges hereinafter acquired or entered into by the Issuer, including, without limitation, all
monies due and to become due to the Issuer thereunder or in connection therewith, whether payable
as contractual payments thereunder, termination payments, damages for the breach thereof or
otherwise, and all rights, remedies, powers, privileges and claims of the Issuer under or with
respect to the Hedges (whether arising pursuant to the terms of the Hedges or otherwise available
to the Issuer at law or in equity), including, without limitation, the rights of the Issuer to
enforce the Hedges and to give or withhold any and all consents, requests, notices, directions,
approvals, extensions or waivers under or with respect to the Hedges and (i) all present and future
claims, demands, causes of action and choses in action in respect of any or all of the foregoing
and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any
or all of the foregoing, including all proceeds of the conversion

 

 

thereof, 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, 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 (collectively, the “Collateral”).

     The foregoing Grant is made in trust to secure the payment of principal of and interest on,
and any other amounts owing in respect of, the Notes, equally and ratably without prejudice,
priority or distinction, except as provided in this Indenture, to secure payments of all
obligations to the Hedge Counterparty under the Hedges and to secure compliance with the provisions
of this Indenture, except as provided in this Indenture.

     The Indenture Trustee, as Indenture Trustee on behalf of the Secured Parties, acknowledges
such Grant, accepts the trusts under this Indenture in accordance with the provisions of this
Indenture and agrees to perform its duties required in this Indenture to the best of its ability to
the end that the interests of the Holders of the Notes may be adequately and effectively protected.

ARTICLE I

Definitions and Incorporation by Reference

     SECTION 1.01. Definitions. (a) Except as otherwise specified herein or as the context
may otherwise require, capitalized terms used but not otherwise defined herein have the respective
meanings set forth in the Sale and Servicing Agreement for all purposes of this Indenture.

     (b) Except as otherwise specified herein or as the context may otherwise require, the
following terms have the respective meanings set forth below for all purposes of this Indenture.

     “Act” has the meaning specified in Section 11.03(a).

     “Administration Agreement” means the Administration Agreement dated as of February 1,
2008, among the Administrator, the Issuer and the Indenture Trustee.

     “Administrator” means DaimlerChrysler Financial Services Americas LLC, a Michigan
limited liability company, or any successor Administrator under the Administration Agreement.

     “Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any Person means the power to direct the management
and policies of such Person, directly or indirectly, whether through the ownership of voting
securities, by contract or otherwise; and the terms “controlling” and “controlled” have meanings
correlative to the foregoing.

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     “Authorized Officer” means, with respect to the Issuer, any officer of the Owner
Trustee or any agent acting pursuant to a power of attorney by the Owner Trustee who is authorized
to act for the Owner Trustee in matters relating to the Issuer and who is identified on the list of
Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the Closing Date (as
such list may be modified or supplemented from time to time thereafter) and, so long as the
Administration Agreement is in effect, any Vice President or more senior officer of the
Administrator who is authorized to act for the Administrator in matters relating to the Issuer and
to be acted upon by the Administrator pursuant to the Administration Agreement and who is
identified on the list of Authorized Officers delivered by the Administrator to the Indenture
Trustee on the Closing Date (as such list may be modified or supplemented from time to time
thereafter).

     “Basic Documents” means the Certificate of Trust, the Trust Agreement, the Sale and
Servicing Agreement, the Purchase Agreement, the Administration Agreement, the Note Depository
Agreement, the Hedges and other documents and certificates delivered in connection therewith.

     “Book-Entry Notes” means a beneficial interest in the Class A-1 Notes, Class A-2a
Notes, Class A-2b Notes, Class A-3a Notes, Class A-3b Notes and Class A-4 Notes and, when issued as
Book-Entry Notes pursuant to Section 2.11(a), Class B Notes and Class C Notes, ownership and
transfers of which shall be made through book entries by a Clearing Agency as described in
Section 2.11.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions or trust companies in The City of New York are authorized or obligated by law,
regulation or executive order to remain closed.

     “Certificate of Trust” means the certificate of trust of the Issuer substantially in
the form of Exhibit B-1 and the certificate of amendment of the Issuer substantially in the form of
Exhibit B-2 to the Trust Agreement.

     “Certificated Notes” has the meaning specified in Section 2.11(b).

     “Class A Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes.

     “Class A-1 Interest Accrual Period” means the period from and including the most
recent Payment Date on which interest has been paid (or, in the case of the first Payment Date, the
Closing Date) to but excluding the following Payment Date.

     “Class A-1 Interest Rate” means 3.15195% per annum (computed on the basis of the
actual number of days in the Class A-1 Interest Accrual Period divided by 360).

     “Class A-1 Notes” means the Class A-1 3.15195% Asset Backed Notes, substantially in
the form of Exhibit A-1.

     “Class A-2 Notes” means the Class A-2a Notes and the Class A-2b Notes.

3

 

     “Class A-2a Interest Rate” means 3.40% per annum (computed on the basis of a 360-day
year consisting of twelve 30-day months).

     “Class A-2a Notes” means the Class A-2a 3.40% Asset Backed Notes, substantially in the
form of Exhibit A-2a.

     “Class A-2b Interest Rate” means LIBOR + 0.85% per annum (computed on the basis of the
actual number of days in the Floating Rate Interest Accrual Period divided by 360).

     “Class A-2b Notes” means the Class A-2b Floating Rate Asset Backed Notes,
substantially in the form of Exhibit A-2b.

     “Class A-3 Notes” means the Class A-3a Notes and the Class A-3b Notes.

     “Class A-3a Interest Rate” means 3.70% per annum (computed on the basis of a 360-day
year consisting of twelve 30-day months).

     “Class A-3a Notes” means the Class A-3a 3.70% Asset Backed Notes, substantially in the
form of Exhibit A-3a.

     “Class A-3b Interest Rate” means LIBOR + 1.05% per annum (computed on the basis of the
actual number of days in the Floating Rate Interest Accrual Period divided by 360).

     “Class A-3b Notes” means the Class A-3b Floating Rate Asset Backed Notes,
substantially in the form of Exhibit A-3b.

     “Class A-4 Notes” means the Class A-4 4.48% Asset Backed Notes, substantially in the
form of Exhibit A-4.

     “Class A-4 Interest Rate” means 4.48% per annum (computed on the basis of a 360-day
year consisting of twelve 30-day months).

     “Class B Interest Rate” means 5.57% per annum (computed on the basis of a 360-day year
consisting of twelve 30-day months).

     “Class B Notes” means the Class B 5.57% Asset Backed Notes, substantially in the form
of Exhibit B.

     “Class C Interest Rate” means 5.75% per annum (computed on the basis of a 360-day year
consisting of twelve 30-day months).

     “Class C Notes” means the Class C 5.75% Asset Backed Notes, substantially in the form
of Exhibit C.

     “Class D Notes” means the Class D Asset Backed Notes, substantially in the form of
Exhibit D.

     “Class D Payment Amount” means, with respect to any date, the sum of:

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     (a) the Total Distribution Amount remaining after application of clauses (A) through
(J) of Section 5.05(a)(ii) of the Sale and Servicing Agreement on such date;

     (b) all amounts in the Reserve Account available to be distributed on such date to the
Holders of Class D Notes pursuant to Section 5.06(d) of the Sale and Servicing Agreement;

     (c) all amounts in the Note Principal Distribution Account available to be distributed
on such date to the Holders of Class D Notes pursuant to Section 8.02(c)(v)(H) of the
Indenture;

     (d) the net Total Distribution Amount remaining after application of clauses FIRST
through SEVENTH of Section 5.04(b) of the Indenture on such date; and

     (e) if such date is the Class D Final Scheduled Payment Date, the Pool Balance as of
the immediately preceding date.

     “Class D Stated Principal Amount” shall mean $11,382,481.

     “Clearing Agency” means an organization registered as a “clearing agency” pursuant to
Section 17A of the Exchange Act.

     “Clearing Agency Participant” means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects book-entry
transfers and pledges of securities deposited with the Clearing Agency.

     “Closing Date” means February 21, 2008.

     “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
Treasury Regulations promulgated thereunder.

     “Collateral” has the meaning specified in the Granting Clause of this Indenture.

     “Company” means Chrysler Residual Holdco LLC, a Delaware limited liability company,
and its successor in interest.

     “Controlling Class” means the Class A Notes until they are paid in full; thereafter,
the Class B Notes until they are paid in full; thereafter the Class C Notes until they are paid in
full; and thereafter the Class D Notes until they are paid in full.

     “Corporate Trust Office” means (i) solely for purposes of transfer, surrender, or
exchange of the Notes, DB Services Tennessee, 648 Grassmere Road, Nashville, TN 37211-3658, Attn:
Transfer Unit and (ii) for all other purposes the principal office of the Indenture Trustee at
which at any particular time its corporate trust business shall be administered, which office at
the date of execution of this Indenture is located at 60 Wall Street, 26th Floor, New York, New
York 10005-2858, Attention: Corporate Trust and Agency Services, or at such other address as the
Indenture Trustee may designate from time to time by notice to the Noteholders and the Issuer,

5

 

or the principal corporate trust office of any successor Indenture Trustee at the address
designated by such successor Indenture Trustee by notice to the Noteholders and the Issuer.

     “DBRS” means DBRS, Inc., or its successor.

     “Default” means any occurrence that is, or with notice or the lapse of time or both
would become, an Event of Default.

     “Definitive Notes” has the meaning specified in Section 2.11.

     “Depositor” means DaimlerChrysler Financial Services Americas LLC.

     “Eligible Counterparty” means (i) a Person with commercial paper or short-term deposit
ratings which on the date of the related Hedge are equal to “A-1” or higher by Standard & Poor’s,
“F1” by Fitch and “P-1” by Moody’s, (ii) a Person that agrees that, in the event that its
commercial paper or short-term deposit rating is reduced below such ratings, it shall secure its
obligations under the Hedge to which it is a party or take such other actions as may reasonably be
requested by the Servicer (or the Administrator on behalf of the Issuer) and (iii) a Person the
unsecured debt obligations of which on the date of the related Hedge are rated at least “A” by
Standard & Poor’s, “A” by Fitch and “Aa3” by Moody’s.

     “Event of Default” has the meaning specified in Section 5.01.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     “Executive Officer” means, with respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, Executive Vice President, any
Vice President, the Secretary or the Treasurer of such corporation; and with respect to any
partnership, any general partner thereof.

     “Fitch” means Fitch, Inc., or its successors.

     “Floating Rate Interest Accrual Period” means the period from and including the most
recent Payment Date on which interest has been paid (or, in the case of the first Payment Date, the
Closing Date) to but excluding the following Payment Date.

     “Floating Rate Notes” means the Class A-2b Notes and the Class A-3b Notes.

     “Grant” means mortgage, pledge, bargain, warrant, alienate, remise, release, convey,
assign, transfer, create, and grant a lien upon and a security interest in and a right of set-off
against, deposit, set over and confirm pursuant to this Indenture. A Grant of the Collateral or of
any other agreement or instrument shall include all rights, powers and options (but none of the
obligations) of the granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments in respect of the
Collateral and all other moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and options, to bring
Proceedings in the name of the granting party or otherwise, and generally to do and receive

6

 

anything that the granting party is or may be entitled to do or receive thereunder or with
respect thereto.

     “Hedge” means any interest rate swap agreement or interest rate cap agreement obtained
by the Issuer pursuant to Section 3.21(a) of this Indenture.

     “Hedge Counterparty” means any one or more institutions entering into or guaranteeing
a Hedge with the Issuer that is an Eligible Counterparty and has entered into a Hedge with the
Issuer, including any permitted assignee or successor under the Hedges. The initial Hedge
Counterparty shall be Goldman Sachs Mitsui Marine Derivative Products, L.P.

     “Hedge Assignment” shall have the meaning specified in Section 3.21(b) of this
Indenture.

     “Holder” or “Noteholder” means the Person in whose name a Note is registered
on the Note Register.

     “Indenture Trustee” means Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee under this Indenture, or any successor Indenture Trustee under
this Indenture.

     “Independent” means, when used with respect to any specified Person, that the Person
(a) is in fact independent of the Issuer, any other obligor on the Notes, the Seller and any
Affiliate of any of the foregoing Persons, (b) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the Seller or any
Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such other
obligor, the Seller or any Affiliate of any of the foregoing Persons as an officer, employee,
promoter, underwriter, trustee, partner, director or person performing similar functions.

     “Independent Certificate” means a certificate or opinion to be delivered to the
Indenture Trustee under the circumstances described in, and otherwise complying with, the
applicable requirements of Section 11.01, made by an Independent appraiser or other expert
appointed by an Issuer Order and approved by the Indenture Trustee in the exercise of reasonable
care, and such opinion or certificate shall state that the signer has read the definition of
“Independent” in this Indenture and that the signer is Independent within the meaning thereof.

     “Interest Accrual Period” means, with respect to any Payment Date and the Notes, other
than the Class A-1 Notes and the Floating Rate Notes, the period from and including the eighth day
of the month preceding the month of such Payment Date (or, in the case of the first Payment Date,
the Closing Date) to and including the seventh day of the month of such Payment Date.

     “Interest Calculation Agent” has the meaning specified in Section 2.16.

     “Interest Rate” means the Class A-1 Interest Rate, the Class A-2a Interest Rate, the
Class A-2b Interest Rate, the Class A-3a Interest Rate, the Class A-3b Interest Rate, the Class A-4
Interest Rate, the Class B Interest Rate or the Class C Interest Rate.

7

 

     “Issuer” means DaimlerChrysler Auto Trust 2008-A until a successor replaces it and,
thereafter, means the successor and, for purposes of any provision contained herein and required by
the TIA, each other obligor on the Notes.

     “Issuer Order” or “Issuer Request” means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

     “LIBOR” means, with respect to any Floating Rate Interest Accrual Period, the rate per
annum for deposits in U.S. dollars for a period of one month which appears on the Reuters Screen
LIBOR01 as of 11:00 a.m. on the LIBOR Determination Date, London time as reported by Bloomberg
Financial Commodities News. If that rate does not appear on the Reuters Screen LIBOR01 (or any
other page as may replace that page on that service, or if that service is no longer offered, any
other service for displaying one-month LIBOR or comparable rates as may be selected by the
Indenture Trustee after consultation with the Depositor) then LIBOR will be the Reference Bank
Rate.

     For purposes of this definition, “Reference Bank Rate” means, for any Payment
Date, a rate determined on the basis of the rates at which deposits in U.S. dollars are
offered by reference banks as of 11:00 a.m., London time, on the day that is two LIBOR
Business Days prior to the immediately preceding Payment Date to prime banks in the London
interbank market for a period of one month, in amounts approximately equal to the then
Outstanding Amount of the applicable Class of Floating Rate Notes. The reference banks
will be four major banks that are engaged in transactions in the London interbank market,
selected by the Indenture Trustee after consultation with the Depositor. The Indenture
Trustee will request the principal London office of each of the reference banks to provide
a quotation of its rate. If at least two quotations are provided, the rate will be the
arithmetic mean of the quotations, rounded upwards to the nearest one-sixteenth of one
percent. If on that date fewer than two quotations are provided as requested, the rate
will be the arithmetic mean, rounded upwards to the nearest one-sixteenth of one percent,
of the rates quoted by one or more major banks in New York City, selected by the Indenture
Trustee after consultation with the Depositor, as of 11:00 a.m., New York City time, on
that date to leading European banks for U.S. dollar deposits for a period of one month in
amounts approximately equal to the then Outstanding Amount of the applicable Class of
Floating Rate Notes. If no quotation can be obtained, then LIBOR will be the rate from the
prior Payment Date.

     “LIBOR Business Day” means any day other than a Saturday, Sunday or any other day on
which banks in London are required or authorized to be closed.

     “LIBOR Determination Date” means the day that is two LIBOR Business Days prior to the
preceding Payment Date or, in the case of the initial Payment Date, on the day that is two LIBOR
Business Days prior to the Closing Date.

     “Moody’s” means Moody’s Investors Service, Inc.

8

 

     “Notes” means Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes,
Class B Notes, Class C Notes or Class D Notes.

     “Note Depository Agreement” means the agreement dated February 20, 2008, between the
Issuer and The Depository Trust Company, as the initial Clearing Agency, relating to the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes, the Class B Notes and the
Class C Notes, substantially in the form of Exhibit E.

     “Note Owner” or “Owner” means, with respect to a Book-Entry Note, the Person
who is the beneficial owner of such Book-Entry Note, as reflected on the books of the Clearing
Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a
Clearing Agency Participant or as an indirect participant, in each case in accordance with the
rules of such Clearing Agency).

     “Note Register” and “Note Registrar” have the respective meanings specified in
Section 2.05.

     “Officer’s Certificate” means a certificate signed by any Authorized Officer of the
Issuer, under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.01, and delivered to the Indenture Trustee. Unless otherwise specified,
any reference in this Indenture to an Officer’s Certificate shall be to an Officer’s Certificate of
any Authorized Officer of the Issuer.

     “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be an employee of or counsel to the Issuer and who
shall be satisfactory to the Indenture Trustee, and which opinion or opinions shall be addressed to
the Indenture Trustee as Indenture Trustee, shall comply with any applicable requirements of
Section 11.01 and shall be in form and substance satisfactory to the Indenture Trustee.

     “Outstanding” means, as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except:

          (i) Notes theretofore cancelled by the Note Registrar or delivered to the Note Registrar for
cancellation;

          (ii) Notes or portions thereof the payment for which money in the necessary amount has been
theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the Holders of
such Notes (provided, however, that if such Notes are to be redeemed, notice of such redemption has
been duly given pursuant to this Indenture or provision for such notice has been made, satisfactory
to the Indenture Trustee); and

          (iii) Notes in exchange for or in lieu of which other Notes have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Indenture Trustee is
presented that any such Notes are held by a bona fide purchaser;

provided, that in determining whether the Holders of the requisite Outstanding Amount of the Notes
have given any request, demand, authorization, direction, notice, consent or waiver

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hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the Notes,
the Seller or any Affiliate of any of the foregoing Persons (but excluding the Class D Notes owned
by a single Affiliate of the Issuer and pledged to secure obligations held by non-Affiliate
investors) shall be disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such request, demand,
authorization, direction, notice, consent or waiver, only Notes that the Indenture Trustee knows to
be so owned shall be so disregarded. Notes so owned that have been pledged in good faith may be
regarded as Outstanding if the pledgee establishes to the satisfaction of the Indenture Trustee the
pledgee’s right so to act with respect to such Notes and that the pledgee is not the Issuer, any
other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing Persons.

     “Outstanding Amount” means the aggregate principal amount of all Notes, or Class of
Notes, as applicable, Outstanding at the date of determination. For purposes of calculating the
“Outstanding Amount”, the Class D Stated Principal Amount shall be deemed to be the aggregate
principal amount of the Class D Notes.

     “Owner Trustee” means BNYM (Delaware), not in its individual capacity but solely as
Owner Trustee under the Trust Agreement, or any successor Owner Trustee under the Trust Agreement.

     “Paying Agent” means the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 and is authorized by the
Issuer to make payments to and distributions from the Deposit Account, including payments of
principal of or interest on the Notes on behalf of the Issuer.

     “Payment Date” has the meaning assigned to it in the Sale and Servicing Agreement.

     “Payment Determination Date” has the meaning assigned to it in the Sale and Servicing
Agreement.

     “Percentage Interest” means (a) with respect to the Certificates, the percentage
interest in the Trust represented by a particular Certificate, and (b) with respect to the Class D
Notes, the percentage of the Class D Stated Principal Amount represented by a particular Class D
Note.

     “Person” means any individual, limited liability company, corporation, estate,
partnership, joint venture, association, joint stock company, trust (including any beneficiary
thereof), unincorporated organization or government or any agency or political subdivision thereof.

     “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered under Section 2.06 in lieu of
a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

     “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

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     “Purchase Agreement” means the Purchase Agreement dated as of February 1, 2008 between
the Seller and the Company.

     “QIB” means qualified institutional buyer as defined in Rule 144A.

     “Rating Agency Condition” means, with respect to any action, that each Rating Agency
shall have been given 10 days (or such shorter period as is acceptable to each Rating Agency) prior
notice thereof and that each of Moody’s and Standard & Poor’s shall have notified the Seller, the
Servicer, the Issuer and the Indenture Trustee in writing that such action will not result in a
reduction or withdrawal of the then current rating of the Senior Notes; provided, however, that
upon payment in full of the Senior Notes, “Rating Agency Condition” means, with respect to any
action, that the Holders of a majority of the Class D Stated Principal Amount of the Class D Notes
shall have consented in writing prior to the taking of such action.

     “Rating Agency” means Standard & Poor’s, Moody’s and Fitch. If no such organization
or successor is any longer in existence, “Rating Agency” shall be a nationally recognized
statistical rating organization or other comparable Person designated by the Issuer, notice of
which designation shall be given to the Indenture Trustee, the Owner Trustee and the Servicer. Any
notice required to be given to a Rating Agency pursuant to this Indenture or the Administration
Agreement shall also be given to DBRS, although DBRS shall not be deemed to be a Rating Agency for
any purposes of this Indenture or the Administration Agreement.

     “Record Date” means, with respect to a Payment Date or Redemption Date, the close of
business on the day immediately preceding such Payment Date or Redemption Date or, if Definitive
Notes have been issued pursuant to Section 2.13, the 15th day of the preceding month.

     “Redemption Date” means, in the case of a redemption of the Notes pursuant to
Section 10.01, the Payment Date specified by the Servicer or the Issuer pursuant to Section 10.01.

     “Redemption Price” means in connection with a redemption of the Notes pursuant to
Section 10.01, (a) in the case of the Senior Notes, an amount equal to the unpaid principal amount
of the Senior Notes redeemed plus accrued and unpaid interest thereon at the weighted average of
the Interest Rates for each Class of Senior Notes being so redeemed to but excluding the Redemption
Date and (b) in the case of the Class D Notes, the Class D Payment Amount for the Redemption Date.

     “Registered Holder” means the Person in whose name a Note is registered on the Note
Register on the applicable Record Date.

     “Responsible Officer” means, with respect to the Indenture Trustee, any officer within
the Corporate Trust Office of the Indenture Trustee, including any Managing Director, Director,
Vice President, Assistant Vice President, Assistant Treasurer, Assistant Secretary, Associate or
any other officer of the Indenture Trustee customarily performing functions similar to those
performed by any of the above designated officers and also, with respect to a particular matter,
any other officer to whom such matter is referred because of such officer’s knowledge of and
familiarity with the particular subject, in each case having direct responsibility for the
administration of this Indenture.

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     “Rule 144A” means Rule 144A under the Securities Act.

     “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of
February 1, 2008, between the Issuer and DaimlerChrysler Financial Services Americas LLC, as Seller
and Servicer.

     “Schedule of Receivables” means the list of the Receivables set forth in Schedule A
(which Schedule may be in the form of microfiche).

     “Secured Parties” has the meaning specified in the Granting Clause of this Indenture.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Seller” means DaimlerChrysler Financial Services Americas LLC, in its capacity as
seller under the Sale and Servicing Agreement, and its successor in interest.

     “Senior Notes” means Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4
Notes, Class B Notes and Class C Notes.

     “Servicer” means DaimlerChrysler Financial Services Americas LLC, in its capacity as
servicer under the Sale and Servicing Agreement, and any Successor Servicer thereunder.

     “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc., or its successors.

     “State” means any one of the 50 States of the United States of America or the District
of Columbia.

     “Successor Servicer” has the meaning specified in Section 3.07(e).

     “Trust Estate” means all money, instruments, rights and other property that are
subject or intended to be subject to the lien and security interest of this Indenture for the
benefit of the Noteholders (including all property and interests Granted to the Indenture Trustee),
including all proceeds thereof.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in
force on the date hereof, unless otherwise specifically provided.

     “UCC” means, unless the context otherwise requires, the Uniform Commercial Code, as in
effect in the relevant jurisdiction, as amended from time to time.

     SECTION 1.02. Incorporation by Reference of Trust Indenture Act. Whenever this
Indenture refers to a provision of the TIA, the provision is incorporated by reference in and made
a part of this Indenture. The following TIA terms used in this Indenture have the following
meanings:

     “Commission” means the Securities and Exchange Commission.

     “indenture securities” means the Notes.

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     “indenture security holder” means a Noteholder.

     “indenture to be qualified” means this Indenture.

     “indenture trustee” or “institutional trustee” means the Indenture Trustee.

     “obligor” on the indenture securities means the Issuer and any other obligor on the indenture
securities.

     All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by Commission rule have the meaning assigned to them by
such definitions.

     SECTION 1.03. Rules of Construction. Unless the context otherwise requires:

          (i) a term has the meaning assigned to it;

          (ii) an accounting term not otherwise defined has the meaning assigned to it in accordance
with generally accepted accounting principles as in effect from time to time;

          (iii) “or” is not exclusive;

          (iv) “including” and its variations shall be deemed to be followed by “without limitation”;

          (v) words in the singular include the plural and words in the plural include the singular; and

          (vi) any agreement, instrument or statute defined or referred to herein or in any instrument
or certificate delivered in connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments incorporated therein; references
to a Person are also to its permitted successors and assigns.

ARTICLE II

The Notes

     SECTION 2.01. Form. The Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes,
the Class A-3a Notes, the Class A-3b Notes, the Class A-4 Notes, the Class B Notes, the Class C
Notes and the Class D Notes, in each case together with the Indenture Trustee’s certificate of
authentication, shall be in substantially the form set forth in Exhibit A-1, Exhibit A-2a, Exhibit
A-2b, Exhibit A-3a, Exhibit A-3b, Exhibit A-4, Exhibit B, Exhibit C and Exhibit D, respectively,
with such appropriate insertions, omissions, substitutions and other variations as are required or
permitted by this Indenture, and may have such letters, numbers or other marks of identification
and such legends or endorsements placed thereon as may, consistently herewith, be

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determined by the officers executing such Notes, as evidenced by their execution of the Notes.
Any portion of the text of any Note may be set forth on the reverse thereof, with an appropriate
reference thereto on the face of the Note.

     The definitive Notes shall be typewritten, printed, lithographed or engraved or produced by
any combination of these methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

     Each Note shall be dated the date of its authentication. The terms of the Notes set forth in
Exhibit A-1, Exhibit A-2a, Exhibit A-2b, Exhibit A-3a, Exhibit A-3b, Exhibit A-4, Exhibit B,
Exhibit C and Exhibit D are part of the terms of this Indenture.

     SECTION 2.02. Execution, Authentication and Delivery. The Notes shall be executed on
behalf of the Issuer by any of its Authorized Officers. The signature of any such Authorized
Officer on the Notes may be manual or facsimile.

     Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

     The Indenture Trustee shall upon Issuer Order authenticate and deliver Class A-1 Notes for
original issue in an aggregate principal amount of $350,000,000, Class A-2a Notes for original
issue in the aggregate principal amount of $75,000,000, Class A-2b Notes for original issue in the
aggregate principal amount of $310,000,000, Class A-3a Notes for original issue in the aggregate
principal amount of $275,000,000, Class A-3b Notes for original issue in the aggregate principal
amount of $190,000,000, Class A-4 Notes for original issue in the aggregate principal amount of
$190,300,000, Class B Notes for original issue in an aggregate principal amount of $83,100,000,
Class C Notes for original issue in the aggregate principal amount of $34,000,000 and Class D Notes
for original issue in the Class D Stated Principal Amount of $11,382,481. The aggregate principal
amount of Class A-1 Notes, Class A-2 Notes, Class A-3 Notes, Class A-4 Notes, Class B Notes, Class
C Notes and Class D Notes outstanding at any time may not exceed such respective amounts except as
provided in Section 2.06.

     Each Note shall be dated the date of its authentication. The Class A-1 Notes shall be
issuable as registered Notes in the minimum denomination of $100,000 and in integral multiples of
$1,000 in excess thereof. The Class D Notes shall be issuable as registered Notes in the minimum
denomination of $1,000,000 and in integral multiples of $1 in excess thereof. The Class A-2 Notes,
Class A-3 Notes, Class A-4 Notes, Class B Notes and Class C Notes shall be issuable as registered
Notes in the minimum denomination of $1,000 and in integral multiples thereof.

     No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Indenture Trustee by the manual signature of one of its
authorized signatories, and such certificate upon any Note shall be conclusive evidence, and the
only evidence, that such Note has been duly authenticated and delivered hereunder.

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     SECTION 2.03. Temporary Notes. Pending the preparation of definitive Notes, the
Issuer may execute, and upon receipt of an Issuer Order the Indenture Trustee shall authenticate
and deliver, temporary Notes that are printed, lithographed, typewritten, mimeographed or otherwise
produced, of the tenor of the definitive Notes in lieu of which they are issued and with such
variations not inconsistent with the terms of this Indenture as the officers executing such Notes
may determine, as evidenced by their execution of such Notes.

     If temporary Notes are issued, the Issuer shall cause definitive Notes to be prepared without
unreasonable delay. After the preparation of definitive Notes, the temporary Notes shall be
exchangeable for definitive Notes upon surrender of the temporary Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.02, without charge to the Holder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall execute, and the
Indenture Trustee shall authenticate and deliver in exchange therefor, a like principal amount of
definitive Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all
respects be entitled to the same benefits under this Indenture as definitive Notes.

     SECTION 2.04. Limitations on Transfer of the Class A-1 Notes, Class B Notes, Class C Notes
and the Class D Notes. (a) The Class A-1 Notes, the Class B Notes, the Class C Notes and the
Class D Notes have not been and will not be registered under the Securities Act or any state or
other applicable securities laws and will not be listed on any exchange. No transfer of a Class
A-1 Note, a Class B Note, a Class C Note or a Class D Note shall be made unless such transfer is
made pursuant to Rule 144A under the Securities Act, except that the initial sale shall be made
pursuant to Section 4(2) of the Securities Act. None of the Class A-1 Notes, the Class B Notes, the
Class C Notes or the Class D Notes or any interest or participation therein may be offered or sold
except to a person who the seller reasonably believes is a QIB in a transaction meeting the
requirements of Rule 144A. Each beneficial owner of a Class A-1 Note, a Class B Note, a Class C
Note or a Class D Note is deemed to represent and warrant that it is a QIB. The Seller shall
provide to any Holder of a Class A-1 Note, a Class B Note, a Class C Note or a Class D Note and any
prospective transferee designated by any such Holder, information regarding the Class A-1 Notes,
the Class B Notes, the Class C Notes or the Class D Notes (as applicable) and the Receivables and
such other information as shall be necessary to satisfy the condition to eligibility set forth in
Rule 144A(d)(4) for transfer of any such Class A-1 Note, Class B Note, Class C Note or Class D Note
without registration thereof under the Securities Act pursuant to the registration exemption
provided by Rule 144A. Each Holder of a Class A-1 Note, Class B Note, Class C Note or a Class D
Note desiring to effect such a transfer shall, and does hereby agree to, indemnify the Issuer, the
Owner Trustee, the Indenture Trustee and the Seller against any liability that may result if the
transfer is not so exempt or is not made in accordance with federal and state securities laws.

     (b) The Class D Notes may not be acquired by or for the account of (i) an employee benefit
plan (as defined in Section 3(3) of ERISA) that is subject to the provisions of Title I of ERISA,
(ii) a plan described in Section 4975(e)(1) of the Code or (iii) any entity whose underlying assets
include plan assets by reason of a plan’s investment in the entity (each, a “Benefit Plan”). By
accepting and holding a Class D Note, the Holder thereof shall be deemed to have represented and
warranted that it is not a Benefit Plan.

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     (c) Subject to the restrictions set for in the Trust Agreement, a Holder of Class D Notes may
sell, transfer and assign its Class D Notes; provided, that the Indenture Trustee and the
Owner Trustee shall have received an Opinion of Counsel to the effect that such transfer will not
cause the Issuer to be characterized as an association (or a publicly traded partnership) taxable
as a corporation for federal income tax purposes or Michigan income and single business tax
purposes. Notwithstanding anything herein or in the Trust Agreement, compliance with the proviso
of the preceding sentence shall be a condition to the consummation of the transaction referred to
above.

     (d) The Class D Notes may be transferred only in accordance with the provisions of
Section 3.04(g) of the Trust Agreement. Nothwithstanding anything herein to the contrary but
subject to Section 2.04(e) below, no Class D Note shall be transferred without a simultaneous
transfer of an identical Percentage Interest of Certificates to the same transferee. Any purported
transfer of a Class D Note without such simultaneous transfer of Certificates will be null and void
ab initio. The Note Registrar and the Certificates Registrar shall maintain records with respect
to ownership and transfers of the Class D Notes identical in all respect to the records maintained
with respect to the Certificates.

     (e) The preceding Section 2.04(d) shall not apply if the Holder of a Class D Note shall have
(at its sole expense) supplied the Indenture Trustee with an opinion of nationally recognized tax
counsel to the effect that a transfer of a Class D Note that is not in accordance with the
preceding Section 2.04(d) would not cause the Issuer to be treated as an corporation or an
association taxable as a corporation for U.S. federal income tax purposes.

     (f) The Owner Trustee shall cause each Class A-1 Note, each Class B Note, each Class C Note
and each Class D Note to contain a legend stating that transfer of the Class A-1 Notes, the Class B
Notes, the Class C Notes and Class D Notes is subject to certain restrictions and referring
prospective purchasers of the Class A-1 Notes, the Class B Notes, the Class C Notes and the Class D
Notes to this Section 2.04 with respect to such restrictions.

     SECTION 2.05. Registration; Registration of Transfer and Exchange. The Issuer shall
cause to be kept a register (the “Note Register”) in which the Issuer shall provide for the
registration of Notes and the registration of transfers of Notes. The Indenture Trustee initially
shall be the “Note Registrar” for the purpose of registering Notes and transfers of Notes as herein
provided. Upon any resignation of any Note Registrar, the Issuer shall promptly appoint a
successor or, if it elects not to make such an appointment, assume the duties of Note Registrar.

     If a Person other than the Indenture Trustee is appointed by the Issuer as Note Registrar, the
Issuer will give the Indenture Trustee prompt written notice of the appointment of such Note
Registrar and of the location, and any change in the location, of the Note Register, and the
Indenture Trustee shall have the right to inspect the Note Register at all reasonable times and to
obtain copies thereof, and the Indenture Trustee shall have the right to rely upon a certificate
executed on behalf of the Note Registrar by an Executive Officer thereof as to the names and
addresses of the Holders of the Notes and the principal amounts and number of such Notes.

     Upon surrender for registration of transfer of any Note at the office or agency of the Issuer
to be maintained as provided in Section 3.02, if the requirements of Section 8-401(a) of

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the UCC are met the Issuer shall execute, and the Indenture Trustee shall authenticate and the
Noteholder shall obtain from the Indenture Trustee, in the name of the designated transferee or
transferees, one or more new Notes of the same Class in any authorized denominations, of a like
aggregate principal amount.

     At the option of the Holder, Notes may be exchanged for other Notes of the same Class in any
authorized denominations, of a like aggregate principal amount, upon surrender of the Notes to be
exchanged at such office or agency. Whenever any Notes are so surrendered for exchange, if the
requirements of Section 8-401(a) of the UCC are met the Issuer shall execute, and the Indenture
Trustee shall authenticate and the Noteholder shall obtain from the Indenture Trustee, the Notes
which the Noteholder making the exchange is entitled to receive.

     Every Note presented or surrendered for registration of transfer or exchange shall be duly
endorsed by, or be accompanied by a written instrument of transfer in form satisfactory to the
Indenture Trustee duly executed by, the Holder thereof or such Holder’s attorney duly authorized in
writing. The Indenture Trustee shall be permitted to request such evidence reasonably satisfactory
to it documenting the identity and/or signature of the transferor and the transferee.

     All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or exchange.

     No service charge shall be made to a Holder for any registration of transfer or exchange of
Notes, but the Issuer may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Notes, other than exchanges pursuant to Section 2.03 or 9.06 not involving any transfer.

     The preceding provisions of this Section notwithstanding, the Issuer shall not be required to
make and the Note Registrar need not register transfers or exchanges of Notes selected for
redemption or of any Note for a period of 15 days preceding the due date for any payment with
respect to the Note.

     SECTION 2.06. Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note
is surrendered to the Indenture Trustee, or the Indenture Trustee receives evidence to its
satisfaction of the destruction, loss or theft of any Note, and (ii) there is delivered to the
Indenture Trustee such security or indemnity as may be required by it to hold the Issuer and the
Indenture Trustee harmless, then, in the absence of notice to the Issuer, the Note Registrar or the
Indenture Trustee that such Note has been acquired by a bona fide purchaser, and provided that the
requirements of Sections 8-405 and 8-406 of the UCC are met, the Issuer shall execute, and upon
receipt of an Issuer Request the Indenture Trustee shall authenticate and deliver, in exchange for
or in lieu of any such mutilated, destroyed, lost or stolen Note, a replacement Note of the same
Class; provided, however, that if any such destroyed, lost or stolen Note, but not a mutilated
Note, shall have become or within seven days shall be due and payable, or shall have been called
for redemption, instead of issuing a replacement Note, the Issuer may pay such destroyed, lost or
stolen Note when so due or payable or upon the Redemption Date without surrender thereof. If,
after the delivery of such replacement Note or payment of a destroyed, lost

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or stolen Note pursuant to the proviso to the preceding sentence, a bona fide purchaser of the
original Note in lieu of which such replacement Note was issued presents for payment such original
Note, the Issuer and the Indenture Trustee shall be entitled to recover such replacement Note (or
such payment) from the Person to whom it was delivered or any Person taking such replacement Note
from such Person to whom such replacement Note was delivered or any assignee of such Person, except
a bona fide purchaser, and shall be entitled to recover upon the security or indemnity provided
therefor to the extent of any loss, damage, cost or expense incurred by the Issuer or the Indenture
Trustee in connection therewith.

     Upon the issuance of any replacement Note under this Section, the Issuer may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Indenture Trustee) connected therewith.

     Every replacement Note issued pursuant to this Section in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual obligation of
the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall be at any time
enforceable by anyone, and shall be entitled to all the benefits of this Indenture equally and
proportionately with any and all other Notes duly issued hereunder.

     The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Notes.

     SECTION 2.07. Persons Deemed Owner. Prior to due presentment for registration of
transfer of any Note, the Issuer, the Indenture Trustee and any agent of the Issuer or the
Indenture Trustee may treat the Person in whose name any Note is registered (as of the day of
determination) as the owner of such Note for the purpose of receiving payments of principal of and
interest, if any, on, and any other amount owing in respect of, such Note and for all other
purposes whatsoever, whether or not such Note be overdue, and none of the Issuer, the Indenture
Trustee or any agent of the Issuer or the Indenture Trustee shall be affected by notice to the
contrary.

     SECTION 2.08. Payment of Principal and Interest; Defaulted Interest. (a) The Class
A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3a Notes, the Class A-3b Notes,
the Class A-4 Notes, the Class B Notes and the Class C Notes shall accrue interest at the Class A-1
Interest Rate, the Class A-2a Interest Rate, the Class A-2b Interest Rate, the Class A-3a Interest
Rate, the Class A-3b Interest Rate, the Class A-4 Interest Rate, the Class B Interest Rate and the
Class C Interest Rate, respectively, as set forth in Exhibit A-1, Exhibit A-2a, Exhibit A-2b,
Exhibit A-3a, Exhibit A-3b, Exhibit A-4, Exhibit B and Exhibit C, respectively, and such interest
shall be payable on each Payment Date as specified therein, subject to Section 3.01. Interest on
each Class of Senior Notes, other than the Class A-1 Notes, the Class A-2b Notes and the Class A-3b
Notes, will be calculated on the basis of a 360-day year consisting of twelve 30-day months.
Interest on the Class A-1 Notes will be computed on the basis of the actual number of days in the
Class A-1 Interest Accrual Period divided by 360. Interest on the Class A-2b Notes and the Class
A-3b Notes will be computed on the basis of the actual number of days in the Floating Rate Interest
Accrual Period divided by 360. Any

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installment of interest or principal payable on a Senior Note, or any Class D Payment Amount
payable on the Class D Notes, that is punctually paid or duly provided for by the Issuer on the
applicable Payment Date shall be paid to the Person in whose name such Note (or one or more
Predecessor Notes) is registered on the Record Date by check mailed first-class postage prepaid to
such Person’s address as it appears on the Note Register on such Record Date, except that, unless
Definitive Notes have been issued pursuant to Section 2.13, with respect to Notes registered on the
Record Date in the name of the nominee of the Clearing Agency (initially, such nominee to be Cede &
Co.), payment will be made by wire transfer in immediately available funds to the account
designated by such nominee, and except for the final installment of principal payable with respect
to such Note on a Payment Date or on the applicable class final scheduled Payment Date (and except
for the Redemption Price for any Note called for redemption pursuant to Section 10.01) which shall
be payable as provided below. The funds represented by any such checks returned undelivered shall
be held in accordance with Section 3.03.

     (b) The principal of each Senior Note shall be payable in installments on each Payment Date as
provided in the forms of the Senior Notes set forth in Exhibit A-1, Exhibit A-2a, Exhibit A-2b,
Exhibit A-3a, Exhibit A-3b, Exhibit A-4, Exhibit B and Exhibit C. Notwithstanding the foregoing,
the entire unpaid principal amount of the Notes shall be due and payable, if not previously paid,
on the date on which an Event of Default shall have occurred and be continuing, if the Indenture
Trustee or Holders of the Notes representing not less than a majority of the Outstanding Amount of
the Controlling Class have declared the Notes to be immediately due and payable in the manner
provided in Section 5.02. All principal payments on each Class of Notes shall be made pro rata to
the Noteholders of such Class entitled thereto. The Indenture Trustee shall notify the Person in
whose name a Note is registered at the close of business on the Record Date preceding the Payment
Date on which the Issuer expects that the final installment of principal of and interest on such
Note will be paid. Such notice shall be mailed or transmitted by facsimile prior to such final
Payment Date and shall specify that such final installment will be payable only upon presentation
and surrender of such Note and shall specify the place where such Note may be presented and
surrendered for payment of such installment. Notices in connection with redemptions of Notes shall
be mailed to Noteholders as provided in Section 10.02.

     (c) If the Issuer defaults in a payment of interest on the Notes, the Issuer shall pay
defaulted interest (plus interest on such defaulted interest to the extent lawful) at the
applicable Interest Rate in any lawful manner. The Issuer may pay such defaulted interest to the
persons who are Noteholders on a subsequent special record date, which date shall be at least five
Business Days prior to the payment date. The Issuer shall fix or cause to be fixed any such
special record date and payment date, and, at least 15 days before any such special record date,
the Issuer shall mail to each Noteholder a notice that states the special record date, the payment
date and the amount of defaulted interest to be paid.

     (d) The Class D Notes shall be entitled to receive the Class D Payment Amount on each Payment
Date or Redemption Date, as provided in the form of the Class D Notes set forth in Exhibit D. All
distributions of the Class D Payment Amount shall be made pro rata to the Holders of Class D Notes
entitled thereto. Payments of the Class D Payment Amount on the Class D Notes are subordinated to
the payment of the interest, principal and any premium owed on the Senior Notes as provided herein.
The failure to pay the Class D Payment Amount on the

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Class D Final Scheduled Payment Date shall be an Event of Default under Section 5.01(ii) of this
Indenture.

     SECTION 2.09. Cancellation. All Notes surrendered for payment, registration of
transfer, exchange or redemption shall, if surrendered to any Person other than the Indenture
Trustee, be delivered to the Indenture Trustee and shall be promptly cancelled by the Indenture
Trustee. The Issuer may at any time deliver to the Indenture Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly cancelled by the Indenture Trustee. No
Notes shall be authenticated in lieu of or in exchange for any Notes cancelled as provided in this
Section, except as expressly permitted by this Indenture. All cancelled Notes may be held or
disposed of by the Indenture Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall direct by an Issuer Order that they be returned to
it; provided, that such Issuer Order is timely and the Notes have not been previously disposed of
by the Indenture Trustee.

     SECTION 2.10. Release of Collateral. Subject to Section 11.01 and the terms of the
Basic Documents, the Indenture Trustee shall release property from the lien of this Indenture only
upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an Opinion of Counsel
and Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) or an Opinion of
Counsel in lieu of such Independent Certificates to the effect that the TIA does not require any
such Independent Certificates.

     SECTION 2.11. Book-Entry Notes; Certificated Notes. (a) (A) The Class A-1 Notes,
Class A-2a Notes, Class A-2b Notes, Class A-3a Notes, Class A-3b Notes, and Class A-4 Notes, upon
original issuance, will and (B) Class B Notes and Class C Notes, at the option of the Issuer (or if
requested by a transferee thereof) may, be issued in the form of typewritten Notes representing the
Book-Entry Notes, to be delivered to The Depository Trust Company, the initial Clearing Agency, by,
or on behalf of, the Issuer. The Book-Entry Notes shall be registered initially on the Note
Register in the name of Cede & Co., the nominee of the initial Clearing Agency, and no Owner
thereof will receive a definitive Note representing such Note Owner’s interest in such Note, except
as provided in Section 2.13. Unless and until definitive, fully registered Class A-1 Notes, Class
A-2a Notes, Class A-2b Notes, Class A-3a Notes, Class A-3b Notes, and Class A-4 Notes and, in case
Class B Notes and/or Class C Notes have been issued as Book-Entry Notes, the Class B Notes and/or
Class C Notes (the “Definitive Notes”) have been issued to such Note Owners pursuant to
Section 2.13:

          (i) the provisions of this Section shall be in full force and effect;

          (ii) the Note Registrar and the Indenture Trustee shall be entitled to deal with the Clearing
Agency for all purposes of this Indenture (including the payment of principal of and interest on
the Book-Entry Notes and the giving of instructions or directions hereunder) as the sole holder of
the Book-Entry Notes and shall have no obligation to the Note Owners;

          (iii) to the extent that the provisions of this Section conflict with any other provisions of
this Indenture, the provisions of this Section shall control;

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          (iv) the rights of Note Owners shall be exercised only through the Clearing Agency and shall
be limited to those established by law and agreements between such Note Owners and the Clearing
Agency and/or the Clearing Agency Participants pursuant to the Note Depository Agreement. Unless
and until Definitive Notes are issued pursuant to Section 2.13, the initial Clearing Agency will
make book-entry transfers among the Clearing Agency Participants and receive and transmit payments
of principal of and interest on the Book-Entry Notes to such Clearing Agency Participants; and

          (v) whenever this Indenture requires or permits actions to be taken based upon instructions or
directions of Holders of Notes evidencing a specified percentage of the Outstanding Amount of the
Notes, the Clearing Agency shall be deemed to represent such percentage only to the extent that it
has received instructions to such effect from Note Owners and/or Clearing Agency Participants
owning or representing, respectively, such required percentage of the beneficial interest in the
Notes and has delivered such instructions to the Indenture Trustee.

     (b) Upon original issuance, the Class B Notes, the Class C Notes and the Class D Notes will be
issued in the form of definitive, fully registered notes without coupons (each, a “Certificated
Note”) which shall be registered in the name of the beneficial owner or a nominee thereof, duly
executed by the Issuer and authenticated by the Indenture Trustee; provided that the Class B Notes
and the Class C Notes may be issued in the form of Book-Entry Notes pursuant to Section 2.11(a), in
which case the Issuer shall cooperate with any prospective transferee to enable the relevant
transfer to be exempted under Rule 144A or any other exemption from registration under the
Securities Act and to obtain any necessary securities identifiers (including CUSIPs) for such Class
B Notes and Class C Notes.

     SECTION 2.12. Notices to Clearing Agency. Whenever a notice or other communication to
the Noteholders is required under this Indenture, (a) with respect to the Book-Entry Notes, unless
and until Definitive Notes shall have been issued to such Note Owners pursuant to Section 2.13, the
Indenture Trustee shall give all such notices and communications specified herein to be given to
Holders of the Notes to the Clearing Agency, and shall have no obligation to such Note Owners and
(b) with respect to the Certificated Notes, the Indenture Trustee shall give all such notices and
communication to the Person in whose name such Certificated Note is registered.

     SECTION 2.13. Definitive Notes. If (i) the Administrator advises the Indenture
Trustee in writing that the Clearing Agency is no longer willing or able to properly discharge its
responsibilities with respect to the Book-Entry Notes and the Administrator is unable to locate a
qualified successor, (ii) the Administrator at its option advises the Indenture Trustee in writing
that it elects to terminate the book-entry system through the Clearing Agency or (iii) after the
occurrence of an Event of Default or a Servicer Default, Owners of the Book-Entry Notes
representing beneficial interests aggregating at least a majority of the Outstanding Amount of such
Notes advise the Clearing Agency in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the best interests of such Note Owners, then the Clearing
Agency shall notify all Note Owners and the Indenture Trustee of the occurrence of any such event
and of the availability of Definitive Notes to Note Owners requesting the same. Upon surrender to
the Indenture Trustee of the typewritten Notes representing the Book-Entry Notes

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by the Clearing Agency, accompanied by registration instructions, the Issuer shall execute and
the Indenture Trustee shall authenticate the Definitive Notes in accordance with the instructions
of the Clearing Agency. None of the Issuer, the Note Registrar or the Indenture Trustee shall be
liable for any delay in delivery of such instructions and may conclusively rely on, and shall be
protected in relying on, such instructions. Upon the issuance of Definitive Notes, the Indenture
Trustee shall recognize the Holders of the Definitive Notes as Noteholders.

     SECTION 2.14. Tax Treatment. The Issuer has entered into this Indenture, and the
Senior Notes will be issued, with the intention that, for all purposes including federal, state and
local income, single business and franchise tax purposes, the Senior Notes will qualify as
indebtedness secured by the Trust Estate. The Issuer, by entering into this Indenture, and each
Noteholder, by its acceptance of a Senior Note (and each Note Owner by its acceptance of an
interest in the applicable Book-Entry Note), agree to treat the Senior Notes for all purposes
including federal, state and local income, single business and franchise tax purposes as
indebtedness of the Issuer. With respect to the Class D Notes, it is the intention of the parties
hereto that, solely for income and franchise tax purposes, (i) so long as there is a sole Holder of
Class D Notes, the Issuer shall be treated as a security arrangement, with the assets of the Issuer
being the Receivables and other assets held by the Issuer, the owner of the Receivables being the
sole Holder of Class D Notes and the Senior Notes being non-recourse debt of the sole Holder of
Class D Notes and (ii) if there is more than one Holder of Class D Notes, the Issuer shall be
treated as a partnership for income and franchise tax purposes, with the assets of the partnership
being the Receivables and other assets held by the Issuer, the partners of the partnership being
the Holders of Class D Notes and the Senior Notes being debt of the partnership.

     SECTION 2.15. Representations and Warranties as to the Security Interest of the Indenture
Trustee in the Receivables. The Issuer makes the following representations and warranties to
the Indenture Trustee. The representations and warranties speak as of the execution and delivery
of this Indenture and as of the Closing Date, and shall survive the sale of the Trust Estate to the
Issuer and the pledge thereof to the Indenture Trustee pursuant to this Indenture.

     (a) This Indenture creates a valid and continuing security interest (as defined in the UCC) in
the Receivables in favor of the Indenture Trustee, which security interest is prior to all other
Liens, and is enforceable as such as against creditors of and purchasers from the Issuer.

     (b) The Receivables constitute “tangible chattel paper” within the meaning of the UCC.

     (c) The Issuer owns and has good and marketable title to the Receivables free and clear of any
lien, claim or encumbrance of any Person.

     (d) The Issuer has caused or will have caused, within ten 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 Receivables granted to the Indenture Trustee
hereunder.

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     (e) Other than the security interest granted to the Indenture Trustee pursuant to this
Indenture, the Issuer has not pledged, assigned, sold, granted a security interest in, or otherwise
conveyed any of the Receivables. The Issuer has not authorized the filing of and is not aware of
any financing statements against the Issuer that include a description of collateral covering the
Receivables other than any financing statement relating to the security interest granted to the
Indenture Trustee hereunder or that has been terminated. The Issuer is not aware of any judgment
or tax lien filings against it.

     (f) The Servicer as custodian for the Issuer has in its possession all original copies of the
contracts that constitute or evidence the Receivables. The contracts that constitute or evidence
the Receivables do not have any marks or notations indicating that they have been pledged, assigned
or otherwise conveyed to any Person other than the Indenture Trustee.

     SECTION 2.16. Interest Calculation Agent The Issuer hereby agrees that for so long as
the Floating Rate Notes remain Outstanding there will at all times be an agent appointed to
calculate LIBOR (the “Interest Calculation Agent”). The Issuer hereby appoints the
Indenture Trustee as Interest Calculation Agent for such purposes. The Indenture Trustee will
notify the Servicer of the LIBOR determination within three Business Days after the LIBOR
Determination Date. If the Interest Calculation Agent is unable or unwilling to act as such, the
Issuer shall promptly appoint a replacement Interest Calculation Agent. The determination by the
Interest Calculation Agent of LIBOR and the amount of the Class A-2b Interest Rate and the Class
A-3b Interest Rate shall, in the absence of manifest error, be final and binding upon all parties.

ARTICLE III

Covenants

     SECTION 3.01. Payment of Principal and Interest and Other Amounts. The Issuer will
duly and punctually pay the principal of and interest, if any, on, and any other amount owing in
respect of, the Notes in accordance with the terms of the Notes and this Indenture. Without
limiting the foregoing, subject to Section 8.02(c), the Issuer will cause to be distributed all
amounts on deposit in the Deposit Account (including any subaccount thereof) and allocated for
distribution to the Noteholders on a Payment Date pursuant to the Sale and Servicing Agreement (i)
for the benefit of the Class A-1 Notes, to the Class A-1 Noteholders, (ii) for the benefit of the
Class A-2a Notes, to the Class A-2a Noteholders, (iii) for the benefit of the Class A-2b Notes, to
the Class A-2b Noteholders, (iv) for the benefit of the Class A-3a Notes, to the Class A-3a
Noteholders, (v) for the benefit of the Class A-3b Notes, to the Class A-3b Noteholders, (vi) for
the benefit of the Class A-4 Notes, to the Class A-4 Noteholders, (vii) for the benefit of the
Class B Notes, to the Class B Noteholders, (viii) for the benefit of the Class C Notes, to the
Class C Noteholders and (ix) for the benefit of the Class D Notes, to the Class D Noteholders.
Amounts properly withheld under the Code by any Person from a payment to any Noteholder of interest
and/or principal or any other amount shall be considered as having been paid by the Issuer to such
Noteholder for all purposes of this Indenture.

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     SECTION 3.02. Maintenance of Office or Agency. The Issuer will maintain an office or
agency where Notes may be surrendered for registration of transfer or exchange, and where notices
and demands to or upon the Issuer in respect of the Notes and this Indenture may be served. The
Issuer hereby initially appoints the Indenture Trustee at its Corporate Trust Office (initially
located in Nashville, Tennessee) to serve as its agent for the foregoing purposes. The Issuer will
give prompt written notice to the Indenture Trustee of the location, and of any change in the
location, of any such office or agency.

     SECTION 3.03. Money for Payments To Be Held in Trust. As provided in Section 8.02(a)
and (b), all payments of amounts due and payable with respect to any Notes that are to be made from
amounts withdrawn from the Deposit Account pursuant to Section 8.02(c) shall be made on behalf of
the Issuer by the Indenture Trustee or by another Paying Agent, and no amounts so withdrawn from
the Deposit Account for payments of Notes shall be paid over to the Issuer except as provided in
this Section.

     On or before the Business Day preceding each Payment Date and Redemption Date, the Issuer
shall allocate or cause to be allocated in the Deposit Account for distribution to the Noteholders
an aggregate sum sufficient to pay the amounts then becoming due under the Notes, such sum to be
held in trust for the benefit of the Persons entitled thereto, and (unless the Paying Agent is the
Indenture Trustee) shall promptly notify the Indenture Trustee of its action or failure so to act.

     The Issuer will cause each Paying Agent other than the Indenture Trustee to execute and
deliver to the Indenture Trustee an instrument in which such Paying Agent shall agree with the
Indenture Trustee (and if the Indenture Trustee acts as Paying Agent, it hereby so agrees), subject
to the provisions of this Section, that such Paying Agent will:

          (i) hold all sums held by it for the payment of amounts due with respect to the Notes in trust
for the benefit of the Persons entitled thereto until such sums shall be paid to such Persons or
otherwise disposed of as herein provided and pay such sums to such Persons as herein provided;

          (ii) give the Indenture Trustee notice of any default by the Issuer (or any other obligor upon
the Notes) of which it has actual knowledge in the making of any payment required to be made with
respect to the Notes;

          (iii) at any time during the continuance of any such default, upon the written request of the
Indenture Trustee, forthwith pay to the Indenture Trustee all sums so held in trust by such Paying
Agent;

          (iv) immediately resign as a Paying Agent and forthwith pay to the Indenture Trustee all sums
held by it in trust for the payment of Notes if at any time it ceases to meet the standards
required to be met by a Paying Agent at the time of its appointment; and

          (v) comply with all requirements of the Code with respect to the withholding from any payments
made by it on any Notes of any applicable withholding taxes imposed thereon and with respect to any
applicable reporting requirements in connection therewith.

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     The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Paying Agent to pay to the
Indenture Trustee all sums held in trust by such Paying Agent, such sums to be held by the
Indenture Trustee upon the same trusts as those upon which the sums were held by such Paying Agent;
and upon such payment by any Paying Agent to the Indenture Trustee, such Paying Agent shall be
released from all further liability with respect to such money.

     Subject to applicable laws with respect to escheat of funds, any money held by the Indenture
Trustee or any Paying Agent in trust for the payment of any amount due with respect to any Note and
remaining unclaimed for two years after such amount has become due and payable shall be discharged
from such trust and be paid to the Issuer on Issuer Request; and the Holder of such Note shall
thereafter, as an unsecured general creditor, look only to the Issuer for payment thereof (but only
to the extent of the amounts so paid to the Issuer), and all liability of the Indenture Trustee or
such Paying Agent with respect to such trust money shall thereupon cease; provided, however, that
the Indenture Trustee or such Paying Agent, before being required to make any such repayment, shall
at the expense and direction of the Issuer cause to be published once, in a newspaper published in
the English language, customarily published on each Business Day and of general circulation in The
City of New York, notice that such money remains unclaimed and that, after a date specified
therein, which shall not be less than 30 days from the date of such publication, any unclaimed
balance of such money then remaining will be repaid to the Issuer. The Indenture Trustee shall
also adopt and employ, at the expense and direction of the Issuer, any other reasonable means of
notification of such repayment (including, but not limited to, mailing notice of such repayment to
Holders whose Notes have been called but have not been surrendered for redemption or whose right to
or interest in moneys due and payable but not claimed is determinable from the records of the
Indenture Trustee or of any Paying Agent, at the last address of record for each such Holder).

     SECTION 3.04. Existence. The Issuer will keep in full effect its existence, rights
and franchises as a statutory trust under the laws of the State of Delaware (unless it becomes, or
any successor Issuer hereunder is or becomes, organized under the laws of any other State or of the
United States of America, in which case the Issuer will keep in full effect its existence, rights
and franchises under the laws of such other jurisdiction) and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification is or shall be
necessary to protect the validity and enforceability of this Indenture, the Notes, the Collateral
and each other instrument or agreement included in the Trust Estate.

     SECTION 3.05. Protection of Trust Estate. The Issuer will from time to time execute
and deliver all such supplements and amendments hereto and all such financing statements,
continuation statements, instruments of further assurance and other instruments, and will take such
other action necessary or advisable to:

          (i) maintain or preserve the lien and security interest (and the priority thereof) of this
Indenture or carry out more effectively the purposes hereof;

          (ii) perfect, publish notice of or protect the validity of any Grant made or to be made by
this Indenture;

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          (iii) enforce any of the Collateral; or

          (iv) preserve and defend title to the Trust Estate and the rights of the Indenture Trustee and
the Noteholders in such Trust Estate against the claims of all persons and parties.

The Issuer hereby designates the Indenture Trustee its agent and attorney-in-fact to execute any
financing statement, continuation statement or other instrument required to be executed pursuant to
this Section 3.05.

     SECTION 3.06. Opinions as to Trust Estate. (a) On the Closing Date, the Issuer shall
furnish to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such
counsel, such action has been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with respect to the
execution and filing of any financing statements and continuation statements, as are necessary to
perfect and make effective the lien and security interest of this Indenture and reciting the
details of such action, or stating that, in the opinion of such counsel, no such action is
necessary to make such lien and security interest effective.

     (b) On or before March 31, in each calendar year, beginning in 2009, the Issuer shall furnish
to the Indenture Trustee an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording, filing, re-recording and refiling of this
Indenture, any indentures supplemental hereto and any other requisite documents and with respect to
the filing of any financing statements and continuation statements as is necessary to maintain the
lien and security interest created by this Indenture and reciting the details of such action, or
stating that in the opinion of such counsel no such action is necessary to maintain such lien and
security interest. Such Opinion of Counsel shall also describe the recording, filing, re-recording
and refiling of this Indenture, any indentures supplemental hereto and any other requisite
documents and the execution and filing of any financing statements and continuation statements that
will, in the opinion of such counsel, be required to maintain the lien and security interest of
this Indenture until March 31 in the following calendar year.

     SECTION 3.07. Performance of Obligations; Servicing of Receivables. (a) The Issuer
will not take any action and will use its best efforts not to permit any action to be taken by
others that would release any Person from any of such Person’s material covenants or obligations
under any instrument or agreement included in the Trust Estate or that would result in the
amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as expressly provided in this Indenture,
the Sale and Servicing Agreement or such other instrument or agreement.

     (b) The Issuer may contract with other Persons to assist it in performing its duties under
this Indenture, and any performance of such duties by a Person identified to the Indenture Trustee
in an Officer’s Certificate of the Issuer shall be deemed to be action taken by the Issuer.
Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer
in performing its duties under this Indenture.

     (c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Basic Documents and in the instruments and

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agreements included in the Trust Estate, including but not limited to filing or causing to be
filed all UCC financing statements and continuation statements required to be filed by the terms of
this Indenture and the Sale and Servicing Agreement in accordance with and within the time periods
provided for herein and therein. Except as otherwise expressly provided therein, the Issuer shall
not waive, amend, modify, supplement or terminate any Basic Document or any provision thereof
without the consent of the Indenture Trustee or the Holders of at least a majority of the
Outstanding Amount of the Notes.

     (d) If the Issuer shall have knowledge of the occurrence of a Servicer Default under the Sale
and Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee and the Rating
Agencies thereof, and shall specify in such notice the action, if any, the Issuer is taking with
respect to such default. If a Servicer Default shall arise from the failure of the Servicer to
perform any of its duties or obligations under the Sale and Servicing Agreement with respect to the
Receivables, the Issuer shall take all reasonable steps available to it to remedy such failure.

     (e) As promptly as possible after the giving of notice of termination to the Servicer of the
Servicer’s rights and powers pursuant to Section 8.01 of the Sale and Servicing Agreement, the
Issuer shall appoint a successor servicer (the “Successor Servicer”), and such Successor Servicer
shall accept its appointment by a written assumption in a form acceptable to the Indenture Trustee.
In the event that a Successor Servicer has not been appointed and accepted its appointment at the
time when the Servicer ceases to act as Servicer, the Indenture Trustee without further action
shall automatically be appointed the Successor Servicer. The Indenture Trustee may resign as the
Servicer by giving written notice of such resignation to the Issuer and in such event will be
released from such duties and obligations, such release not to be effective until the date a new
servicer enters into a servicing agreement with the Issuer as provided below. Upon delivery of any
such notice to the Issuer, the Issuer shall obtain a new servicer as the Successor Servicer under
the Sale and Servicing Agreement. Any Successor Servicer other than the Indenture Trustee shall
(i) be an established financial institution having a net worth of not less than $100,000,000 and
whose regular business includes the servicing of Contracts and (ii) enter into a servicing
agreement with the Issuer having substantially the same provisions as the provisions of the Sale
and Servicing Agreement applicable to the Servicer. If within 30 days after the delivery of the
notice referred to above, the Issuer shall not have obtained such a new servicer, the Indenture
Trustee may appoint, or may petition a court of competent jurisdiction to appoint, a Successor
Servicer. In connection with any such appointment, the Indenture Trustee may make such
arrangements for the compensation of such successor as it and such successor shall agree, subject
to the limitations set forth below and in the Sale and Servicing Agreement, and in accordance with
Section 8.02 of the Sale and Servicing Agreement, the Issuer shall enter into an agreement with
such successor for the servicing of the Receivables (such agreement to be in form and substance
satisfactory to the Indenture Trustee). If the Indenture Trustee shall succeed to the Servicer’s
duties as servicer of the Receivables as provided herein, it shall do so in its individual capacity
and not in its capacity as Indenture Trustee and, accordingly, the provisions of Article VI hereof
shall be inapplicable to the Indenture Trustee in its duties as the successor to the Servicer and
the servicing of the Receivables. In case the Indenture Trustee shall become successor to the
Servicer under the Sale and Servicing Agreement, the Indenture Trustee shall be entitled to appoint
as Servicer any one of its affiliates, provided that it shall be fully liable for the actions and
omissions of such affiliate in such capacity as Successor Servicer.

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     (f) Upon any termination of the Servicer’s rights and powers pursuant to the Sale and
Servicing Agreement, the Issuer shall promptly notify the Indenture Trustee. As soon as a
Successor Servicer is appointed, the Issuer shall notify the Indenture Trustee of such appointment,
specifying in such notice the name and address of such Successor Servicer.

     (g) Without derogating from the absolute nature of the assignment granted to the Indenture
Trustee under this Indenture or the rights of the Indenture Trustee hereunder, the Issuer agrees
(i) that it will not, without the prior written consent of the Indenture Trustee or the Holders of
at least a majority in Outstanding Amount of the Notes, amend, modify, waive, supplement, terminate
or surrender, or agree to any amendment, modification, supplement, termination, waiver or surrender
of, the terms of any Collateral (except to the extent otherwise provided in the Sale and Servicing
Agreement) or the Basic Documents, or waive timely performance or observance by the Servicer or the
Seller under the Sale and Servicing Agreement; and (ii) that any such amendment shall not
(A) increase or reduce in any manner the amount of, or accelerate or delay the timing of,
distributions that are required to be made for the benefit of the Noteholders or (B) reduce the
aforesaid percentage of the Notes that is required to consent to any such amendment, without the
consent of the Holders of all the Outstanding Notes. If any such amendment, modification,
supplement or waiver shall be so consented to by the Indenture Trustee or such Holders, the Issuer
agrees, promptly following a request by the Indenture Trustee to do so, to execute and deliver, in
its own name and at its own expense, such agreements, instruments, consents and other documents as
the Indenture Trustee may deem necessary or appropriate in the circumstances.

     SECTION 3.08. Negative Covenants. So long as any Notes are Outstanding, the Issuer
shall not:

          (i) except as expressly permitted by this Indenture, the Purchase Agreement or the Sale and
Servicing Agreement, sell, transfer, exchange or otherwise dispose of any of the properties or
assets of the Issuer, including those included in the Trust Estate, unless directed to do so by the
Indenture Trustee;

          (ii) claim any credit on, or make any deduction from the principal or interest or any other
amount payable in respect of, the Notes (other than amounts properly withheld from such payments
under the Code) or assert any claim against any present or former Noteholder by reason of the
payment of the taxes levied or assessed upon any part of the Trust Estate;

          (iii) dissolve or liquidate in whole or in part; or

          (iv) (A) permit the validity or effectiveness of this Indenture to be impaired, or permit the
lien of this Indenture to be amended, hypothecated, subordinated, terminated or discharged, or
permit any Person to be released from any covenants or obligations with respect to the Notes under
this Indenture except as may be expressly permitted hereby, (B) permit any lien, charge, excise,
claim, security interest, mortgage or other encumbrance (other than the lien of this Indenture) to
be created on or extend to or otherwise arise upon or burden the Trust Estate or any part thereof
or any interest therein or the proceeds thereof (other than tax liens, mechanics’ liens and other
liens that arise by operation of law, in each case on any of the Financed Vehicles and arising
solely as a result of an action or omission of the related Obligor) or (C) permit the

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lien of this Indenture not to constitute a valid first priority (other than with respect to
any such tax, mechanics’ or other lien) security interest in the Trust Estate.

     SECTION 3.09. Annual Statement as to Compliance. The Issuer will deliver to the
Indenture Trustee, within 120 days after the end of each fiscal year of the Issuer (commencing with
the fiscal year 2008), an Officer’s Certificate stating, as to the Authorized Officer signing such
Officer’s Certificate, that:

          (i) a review of the activities of the Issuer during such year and of its performance under
this Indenture has been made under such Authorized Officer’s supervision; and

          (ii) to the best of such Authorized Officer’s knowledge, based on such review, the Issuer has
complied with all conditions and covenants under this Indenture throughout such year or, if there
has been a default in its compliance with any such condition or covenant, specifying each such
default known to such Authorized Officer and the nature and status thereof.

     SECTION 3.10. Issuer May Consolidate, etc., Only on Certain Terms. (a) The Issuer
shall not consolidate or merge with or into any other Person, unless:

          (i) the Person (if other than the Issuer) formed by or surviving such consolidation or merger
shall be a Person organized and existing under the laws of the United States of America or any
State and shall expressly assume, by an indenture supplemental hereto, executed and delivered to
the Indenture Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment
of the principal of and interest on all Notes and the performance or observance of every agreement
and covenant of this Indenture on the part of the Issuer to be performed or observed, all as
provided herein;

          (ii) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not have any material
adverse tax consequence to the Issuer, any Noteholder or any Certificateholder;

          (v) any action that is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and

          (vi) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such consolidation or merger and such supplemental indenture
comply with this Article III and that all conditions precedent herein provided for relating to such
transaction have been complied with (including any filing required by the Exchange Act).

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     (b) The Issuer shall not convey or transfer any of its properties or assets, including those
included in the Trust Estate, to any Person, unless:

          (i) the Person that acquires by conveyance or transfer the properties and assets of the Issuer
the conveyance or transfer of which is hereby restricted (A) shall be a United States citizen or a
Person organized and existing under the laws of the United States of America or any State,
(B) expressly assumes, by an indenture supplemental hereto, executed and delivered to the Indenture
Trustee, in form satisfactory to the Indenture Trustee, the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of every agreement and
covenant of this Indenture on the part of the Issuer to be performed or observed, all as provided
herein, (C) expressly agrees by means of such supplemental indenture that all right, title and
interest so conveyed or transferred shall be subject and subordinate to the rights of Holders of
the Notes, (D) unless otherwise provided in such supplemental indenture, expressly agrees to
indemnify, defend and hold harmless the Issuer against and from any loss, liability or expense
arising under or related to this Indenture and the Notes and (E) expressly agrees by means of such
supplemental indenture that such Person (or if a group of Persons, then one specified Person) shall
make all filings with the Commission (and any other appropriate Person) required by the Exchange
Act in connection with the Notes;

          (ii) immediately after giving effect to such transaction, no Default or Event of Default shall
have occurred and be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered copies
thereof to the Indenture Trustee) to the effect that such transaction will not have any material
adverse federal income or Michigan income or single business tax consequence to the Issuer or any
Noteholder or any Certificateholder;

          (v) any action that is necessary to maintain the lien and security interest created by this
Indenture shall have been taken; and

          (vi) the Issuer shall have delivered to the Indenture Trustee an Officer’s Certificate and an
Opinion of Counsel each stating that such conveyance or transfer and such supplemental indenture
comply with this Article III and that all conditions precedent herein provided for relating to such
transaction have been complied with (including any filing required by the Exchange Act).

     SECTION 3.11. Successor or Transferee. (a) Upon any consolidation or merger of the
Issuer in accordance with Section 3.10(a), the Person formed by or surviving such consolidation or
merger (if other than the Issuer) shall succeed to, and be substituted for, and may exercise every
right and power of, the Issuer under this Indenture with the same effect as if such Person had been
named as the Issuer herein.

     (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to
Section 3.10(b), DaimlerChrysler Auto Trust 2008-A will be released from every covenant and
agreement of this Indenture to be observed or performed on the part of the Issuer

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with respect to the Notes immediately upon the delivery of written notice to the Indenture
Trustee stating that DaimlerChrysler Auto Trust 2008-A is to be so released.

     SECTION 3.12. No Other Business. The Issuer shall not engage in any business other
than financing, purchasing, owning, selling and managing the Receivables in the manner contemplated
by this Indenture and the Basic Documents and activities incidental thereto. The Issuer shall not
fund the purchase of any new Contracts.

     SECTION 3.13. No Borrowing. The Issuer shall not issue, incur, assume, guarantee or
otherwise become liable, directly or indirectly, for any indebtedness.

     SECTION 3.14. Servicer’s Obligations. The Issuer shall cause the Servicer to comply
with Sections 4.09, 4.10, 4.11 and 5.07 and Article XI of the Sale and Servicing Agreement.

     SECTION 3.15. Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Sale and Servicing Agreement or this Indenture, the Issuer shall not make any
loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the
effect of assuring another’s payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection
with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any other interest in,
or make any capital contribution to, any other Person.

     SECTION 3.16. Capital Expenditures. The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or personalty).

     SECTION 3.17. Removal of Administrator. So long as any Notes are Outstanding, the
Issuer shall not remove the Administrator without cause unless the Rating Agency Condition shall
have been satisfied in connection with such removal.

     SECTION 3.18. Restricted Payments. The Issuer shall not, directly or indirectly,
(i) pay any dividend or make any distribution (by reduction of capital or otherwise), whether in
cash, property, securities or a combination thereof, to the Owner Trustee or any owner of a
beneficial interest in the Issuer or otherwise with respect to any ownership or equity interest or
security in or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire
for value any such ownership or equity interest or security or (iii) set aside or otherwise
segregate any amounts for any such purpose; provided, however, that the Issuer may make, or cause
to be made, (x) distributions as contemplated by, and to the extent funds are available for such
purpose under, the Sale and Servicing Agreement or the Trust Agreement and (y) payments to the
Indenture Trustee pursuant to Section 1(a)(ii) of the Administration Agreement. The Issuer will
not, directly or indirectly, make payments to or distributions from the Deposit Account except in
accordance with this Indenture and the Basic Documents.

     SECTION 3.19. Notice of Events of Default. The Issuer shall give the Indenture
Trustee and the Rating Agencies prompt written notice of each Event of Default hereunder and each
default on the part of the Servicer or the Seller of its obligations under the Sale and

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Servicing Agreement and each default on the part of the Company or the Seller of its
obligations under the Purchase Agreement.

     SECTION 3.20. Further Instruments and Acts. Upon request of the Indenture Trustee,
the Issuer will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out more effectively the purpose of this Indenture.

     SECTION 3.21. Required Hedges. (a) The Issuer shall maintain, at all times on and
after the date of the Closing Date, Hedges in the form of either one or more interest rate swaps or
one or more interest rate caps, in each case, (i) between the Issuer and an Eligible Counterparty,
(ii) with an aggregate notional amount that equals or, in the case of an interest rate cap only,
exceeds the aggregate Outstanding Amount of the Floating Rate Notes of the relevant Class on the
Closing Date and as of any date of determination thereafter, (iii) that, in the case of an interest
rate swap, provides for the payment on each Payment Date to the Hedge Counterparty of interest at a
fixed rate per annum and for payment to the Issuer of a floating rate per annum equal to LIBOR plus
an applicable spread, based upon a notional amount equal to the Outstanding Amount of the relevant
Class of Floating Rate Notes, (iv) that, in the case of an interest rate cap, has an effective
strike rate based on LIBOR plus an applicable spread, in each case based upon a notional amount
equal to the Outstanding Amount of the relevant Class of Floating Rate Notes, and that provides for
payments on each Payment Date to the Issuer equal to any positive difference between LIBOR and the
effective strike rate for such Floating Rate Interest Accrual Period, (v) with a final maturity
date which is the date of the last required scheduled payment on the Receivables, (vi) with respect
to which the Indenture Trustee has received a Hedge Assignment, (vii) which is either (I)
substantially in the form of Exhibit F or (II) otherwise in form and substance reasonably
acceptable to the Indenture Trustee acting at the direction of the Controlling Class and (viii) a
copy of which has been delivered to the Indenture Trustee.

     (b) The Issuer agrees that at any time that it acquires any Hedge intended to satisfy the
requirements of Section 3.21(a), it shall execute and deliver to the Indenture Trustee an
assignment of all amounts payable to the Issuer under such Hedge substantially in the form of
Exhibit G (each a “Hedge Assignment”).

     (c) If at any time the counterparty risk or financial program rating assigned to the Hedge
Counterparty is withdrawn, suspended or reduced below “A2” by Moody’s or “A+” by Standard & Poor’s,
the Issuer shall, to the extent permitted under the Hedge or Hedges to which such Hedge
Counterparty is a party, require that such Hedge Counterparty, within the time period specified in
the Hedge and subject to satisfaction of the Rating Agency Condition, do one or more of the
following: (A) post eligible collateral as and to the extent required under the Hedge, (B)
transfer, at is own expense, its rights and obligations under the Hedges to another party, (C)
provide, at its own expense, a guaranty in respect of all of its obligations under the Hedges, or
(D) take such other actions as may be reasonably requested by the Indenture Trustee.

     (d) If at any time the counterparty risk or financial program rating assigned to the Hedge
Counterparty is withdrawn, suspended or reduced below “A3” by Moody’s or “BBB+” by Standard &
Poor’s (provided that the Hedge Counterparty is a Financial Institution, as defined in the Hedge),
the Issuer shall, to the extent permitted under the Hedge or Hedges to which such

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Hedge Counterparty is a party, require that such Hedge Counterparty, within the time period
specified in the Hedge and subject to satisfaction of the Rating Agency Condition, transfer, at its
own expense, its rights and obligations under the Hedges to another party.

ARTICLE IV

Satisfaction and Discharge

     SECTION 4.01. Satisfaction and Discharge of Indenture. This Indenture shall cease to
be of further effect with respect to the Notes except as to (i) rights of registration of transfer
and exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon and any other amount
owing in respect thereof, (iv) Sections 3.03, 3.04, 3.05, 3.08, 3.10, 3.12 and 3.13, (v) the
rights, obligations and immunities of the Indenture Trustee hereunder (including the rights of the
Indenture Trustee under Section 6.07 and the obligations of the Indenture Trustee under
Section 4.02) and (vi) the rights of Noteholders as beneficiaries hereof with respect to the
property so deposited with the Indenture Trustee payable to all or any of them, and the Indenture
Trustee, on demand of and at the expense of the Issuer, shall execute proper instruments
acknowledging satisfaction and discharge of this Indenture with respect to the Notes, when:

          (A) either:

                    (1) all Notes theretofore authenticated and delivered (other than (i) Notes that have been
destroyed, lost or stolen and that have been replaced or paid as provided in Section 2.06 and
(ii) Notes for whose payment money has theretofore been deposited in trust or segregated and held
in trust by the Issuer and thereafter repaid to the Issuer or discharged from such trust, as
provided in Section 3.03) have been delivered to the Indenture Trustee for cancellation; or

                    (2) all Notes not theretofore delivered to the Indenture Trustee for cancellation:

          a. have become due and payable,

          b. will become due and payable at the Class D Final Scheduled Date within one year, or

          c. are to be called for redemption within one year under arrangements satisfactory to the
Indenture Trustee for the giving of notice of redemption by the Indenture Trustee in the name, and
at the expense, of the Issuer,

and the Issuer, in the case of a., b. or c. above, has irrevocably deposited or
caused to be irrevocably deposited with the Indenture Trustee cash or direct
obligations of or obligations guaranteed by the United States of America (which will
mature prior to the date such amounts are payable), in trust for such purpose, in an
amount sufficient to pay and discharge the entire indebtedness on such Notes not

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theretofore delivered to the Indenture Trustee for cancellation when due to the
applicable final scheduled Payment Date or Redemption Date (if Notes shall have been
called for redemption pursuant to Section 10.01), as the case may be;

     (B) the Issuer has paid or caused to be paid all other sums payable hereunder by the
Issuer; and

     (C) the Issuer has delivered to the Indenture Trustee an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA or the Indenture Trustee) an Independent
Certificate from a firm of certified public accountants, each meeting the applicable
requirements of Section 11.01(a) and, subject to Section 11.02, each stating that all
conditions precedent herein provided for relating to the satisfaction and discharge of this
Indenture have been complied with.

     SECTION 4.02. Application of Trust Money. (a) All moneys deposited with the Indenture
Trustee pursuant to Section 4.01 hereof shall be held in trust and applied by it, in accordance
with the provisions of the Notes and this Indenture, to the payment, either directly or through any
Paying Agent, as the Indenture Trustee may determine, to the Holders of the particular Notes for
the payment or redemption of which such moneys have been deposited with the Indenture Trustee, of
all sums due and to become due thereon for principal and interest (or other amounts with respect to
the Class D Notes); but such moneys need not be segregated from other funds except to the extent
required herein or in the Sale and Servicing Agreement or required by law.

     (b) In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to a Noteholder, such tax shall reduce the amount otherwise distributable to the Noteholder
in accordance with this Section. The Paying Agent is hereby authorized and directed to retain from
amounts otherwise distributable to the Noteholders sufficient funds for the payment of any tax that
is legally owed by the Trust (but such authorization shall not prevent the Indenture Trustee from
contesting any such tax in appropriate proceedings and withholding payment of such tax, if
permitted by law, pending the outcome of such proceedings). The amount of any withholding tax
imposed with respect to a Noteholder shall be treated as cash distributed to such Noteholder at the
time it is withheld by the Trust and remitted to the appropriate taxing authority.

     SECTION 4.03. Repayment of Moneys Held by Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any
Paying Agent other than the Indenture Trustee under the provisions of this Indenture with respect
to such Notes shall, upon demand of the Issuer, be paid to the Indenture Trustee to be held and
applied according to Section 3.03 and thereupon such Paying Agent shall be released from all
further liability with respect to such moneys.

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ARTICLE V

Remedies

     SECTION 5.01. Events of Default. “Event of Default”, wherever used herein, means any
one of the following events (whatever the reason for such Event of Default and whether it shall be
voluntary or involuntary or be effected by operation of law or pursuant to any judgment, decree or
order of any court or any order, rule or regulation of any administrative or governmental body):

          (i) default in the payment of any interest on the Controlling Class when the same becomes due
and payable, and such default shall continue for a period of five days or more;

          (ii) default in the payment of the principal of or any installment of the principal of any
Note when the same becomes due and payable; or

          (iii) default in the observance or performance of any covenant or agreement of the Issuer made
in this Indenture (other than a covenant or agreement, a default in the observance or performance
of which is elsewhere in this Section specifically dealt with), or any representation or warranty
of the Issuer made in this Indenture or in any certificate or other writing delivered pursuant
hereto or in connection herewith proving to have been incorrect in any material respect as of the
time when the same shall have been made, and such default shall continue or not be cured, or the
circumstance or condition in respect of which such misrepresentation or warranty was incorrect
shall not have been eliminated or otherwise cured, for a period of 30 days after there shall have
been given, by registered or certified mail, to the Issuer by the Indenture Trustee or to the
Issuer and the Indenture Trustee by the Holders of at least 25% of the Outstanding Amount of the
Controlling Class, a written notice specifying such default or incorrect representation or warranty
and requiring it to be remedied and stating that such notice is a notice of Default hereunder; or

          (iv) the filing of a decree or order for relief by a court having jurisdiction in the premises
in respect of the Issuer or any substantial part of the Trust Estate in an involuntary case under
any applicable federal or state bankruptcy, insolvency or other similar law now or hereafter in
effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar
official of the Issuer or for any substantial part of the Trust Estate, or ordering the winding-up
or liquidation of the Issuer’s affairs, and such decree or order shall remain unstayed and in
effect for a period of 60 consecutive days; or

          (v) the commencement by the Issuer of a voluntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or the consent by the
Issuer to the entry of an order for relief in an involuntary case under any such law, or the
consent by the Issuer to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any substantial part of
the Trust Estate, or the making by the Issuer of any general assignment for the benefit of
creditors, or the failure by the Issuer generally to pay its debts as such debts become due, or the
taking of any action by the Issuer in furtherance of any of the foregoing.

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The Issuer shall deliver to the Indenture Trustee, within five days after the occurrence thereof,
written notice in the form of an Officer’s Certificate of any event which with the giving of notice
and the lapse of time would become an Event of Default under clause (iii), its status and what
action the Issuer is taking or proposes to take with respect thereto.

     SECTION 5.02.Acceleration of Maturity; Rescission and Annulment. If an Event of
Default should occur and be continuing, then and in every such case the Indenture Trustee or the
Holders of Notes representing not less than a majority of the Outstanding Amount of the Controlling
Class may declare all the Notes to be immediately due and payable, by a notice in writing to the
Issuer (and to the Indenture Trustee if given by Noteholders), and upon any such declaration the
unpaid principal amount of such Notes, together with accrued and unpaid interest thereon through
the date of acceleration, shall become immediately due and payable.

     At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the money due has been obtained by the Indenture Trustee as
hereinafter in this Article V provided, the Holders of Notes representing a majority of the
Outstanding Amount of the Controlling Class, by written notice to the Issuer and the Indenture
Trustee, may rescind and annul such declaration and its consequences if:

          (i) the Issuer has paid or deposited with the Indenture Trustee a sum sufficient to pay:

               (A) all payments of principal of and interest on all Notes and all other amounts that would
then be due hereunder or upon such Notes if the Event of Default giving rise to such acceleration
had not occurred; and

               (B) all sums paid or advanced by the Indenture Trustee hereunder and the reasonable
compensation, expenses, disbursements and advances of the Indenture Trustee and its agents and
counsel; and

          (ii) all Events of Default, other than the nonpayment of the principal of the Notes that has
become due solely by such acceleration, have been cured or waived as provided in Section 5.12.

No such rescission shall affect any subsequent default or impair any right consequent thereto.

     SECTION 5.03. Collection of Indebtedness and Suits for Enforcement by Indenture
Trustee. (a) The Issuer covenants that if (i) there is an Event of Default relating to the
payment of any interest on any Note when the same becomes due and payable, and such default
continues for a period of five days, or (ii) default is made in the payment of the principal of or
any installment of the principal of any Note when the same becomes due and payable, the Issuer
will, upon demand of the Indenture Trustee, pay to it, for the benefit of the Holders of such
Notes, the whole amount then due and payable on such Notes for principal and interest, with
interest on the overdue principal and, to the extent payment at such rate of interest shall be
legally enforceable, on overdue installments of interest at the rate borne by the related Notes
and, in addition thereto, such further amount as shall be sufficient to cover the costs and
expenses of collection, including the reasonable compensation, expenses, disbursements and advances
of the Indenture Trustee and its agents and counsel.

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     (b) In case the Issuer shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, may institute a Proceeding
for the collection of the sums so due and unpaid, and may prosecute such Proceeding to judgment or
final decree, and may enforce the same against the Issuer or other obligor upon such Notes and
collect in the manner provided by law out of the property of the Issuer or other obligor upon such
Notes, wherever situated, the moneys adjudged or decreed to be payable.

     (c) If an Event of Default occurs and is continuing, the Indenture Trustee may, as more
particularly provided in Section 5.04, in its discretion, proceed to protect and enforce its rights
and the rights of the Secured Parties, by such appropriate Proceedings as the Indenture Trustee
shall deem most effective to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the exercise of any power
granted herein, or to enforce any other proper remedy or legal or equitable right vested in the
Indenture Trustee by this Indenture or by law.

     (d) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes
or any Person having or claiming an ownership interest in the Trust Estate, Proceedings under
Title 11 of the United States Code or any other applicable federal or state bankruptcy, insolvency
or other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
or liquidator, sequestrator or similar official shall have been appointed for or taken possession
of the Issuer or its property or such other obligor or Person, or in case of any other comparable
judicial Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or
property of the Issuer or such other obligor, the Indenture Trustee, irrespective of whether the
principal of any Notes shall then be due and payable as therein expressed or by declaration or
otherwise and irrespective of whether the Indenture Trustee shall have made any demand pursuant to
the provisions of this Section, shall be entitled and empowered, by intervention in such
Proceedings or otherwise:

          (i) to file and prove a claim or claims for the whole amount of principal and interest owing
and unpaid in respect of the Notes and to file such other papers or documents as may be necessary
or advisable in order to have the claims of the Indenture Trustee (including any claim for
reasonable compensation to the Indenture Trustee and each predecessor Indenture Trustee, and their
respective agents, attorneys and counsel, and for reimbursement of all expenses and liabilities
incurred, and all advances made, by the Indenture Trustee and each predecessor Indenture Trustee,
except as a result of negligence or bad faith) and of the Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on behalf of the Holders of
Notes in any election of a trustee, a standby trustee or Person performing similar functions in any
such Proceedings;

          (iii) to collect and receive any moneys or other property payable or deliverable on any such
claims and to distribute all amounts received with respect to the claims of the Noteholders and of
the Indenture Trustee on their behalf; and

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          (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee or the Holders of Notes allowed in
any Proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding
is hereby authorized by each of such Noteholders to make payments to the Indenture Trustee and, in
the event that the Indenture Trustee shall consent to the making of payments directly to such
Noteholders, to pay to the Indenture Trustee such amounts as shall be sufficient to cover
reasonable compensation to the Indenture Trustee, each predecessor Indenture Trustee and their
respective agents, attorneys and counsel, and all other expenses and liabilities incurred, and all
advances made, by the Indenture Trustee and each predecessor Indenture Trustee except as a result
of negligence or bad faith.

     (e) Nothing herein contained shall be deemed to authorize the Indenture Trustee to authorize
or consent to or vote for or accept or adopt on behalf of any Noteholder any plan of
reorganization, arrangement, adjustment or composition affecting the Notes or the rights of any
Holder thereof or to authorize the Indenture Trustee to vote in respect of the claim of any
Noteholder in any such proceeding except, as aforesaid, to vote for the election of a trustee in
bankruptcy or similar Person.

     (f) All rights of action and of asserting claims under this Indenture, or under any of the
Notes, may be enforced by the Indenture Trustee without the possession of any of the Notes or the
production thereof in any trial or other Proceedings relative thereto, and any such action or
Proceedings instituted by the Indenture Trustee shall be brought in its own name as trustee of an
express trust, and any recovery of judgment, subject to the payment of the expenses, disbursements
and compensation of the Indenture Trustee, each predecessor Indenture Trustee and their respective
agents and attorneys, shall be for the ratable benefit of the Holders of the Notes.

     (g) In any Proceedings brought by the Indenture Trustee (and also any Proceedings involving
the interpretation of any provision of this Indenture to which the Indenture Trustee shall be a
party), the Indenture Trustee shall be held to represent all the Holders of the Notes, and it shall
not be necessary to make any Noteholder a party to any such Proceedings.

     SECTION 5.04. Remedies; Priorities (a) If an Event of Default shall have occurred
and be continuing, the Indenture Trustee may do one or more of the following (subject to
Section 5.05):

          (i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect thereto,
whether by declaration or otherwise, enforce any judgment obtained and collect from the Issuer and
any other obligor upon such Notes moneys adjudged due;

          (ii) institute Proceedings from time to time for the complete or partial foreclosure of this
Indenture with respect to the Trust Estate;

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          (iii) exercise any remedies of a secured party under the UCC and take any other appropriate
action to protect and enforce the rights and remedies of the Indenture Trustee and the Holders of
the Notes; and

          (iv) sell the Trust Estate or any portion thereof or rights or interest therein, at one or
more public or private sales called and conducted in any manner permitted by law;

provided, however, that the Indenture Trustee may not sell or otherwise liquidate the Trust Estate
following an Event of Default, other than an Event of Default described in Section 5.01(i) or (ii)
with respect to the Controlling Class, unless (A) the Holders of 100% of the Outstanding Amount of
the Senior Notes consent thereto, (B) the proceeds of such sale or liquidation distributable to the
Noteholders are sufficient to discharge in full all amounts then due and unpaid upon such Senior
Notes for principal and interest or (C) the Indenture Trustee determines that the Trust Estate will
not continue to provide sufficient funds for the payment of principal of and interest on the Senior
Notes as they would have become due if the Notes had not been declared due and payable, and the
Indenture Trustee obtains the consent of Holders of 66 2/3% of the Outstanding Amount of the
Controlling Class. In determining such sufficiency or insufficiency with respect to clause (B) and
(C), the Indenture Trustee may, but need not, obtain and rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the feasibility of such proposed
action and as to the sufficiency of the Trust Estate for such purpose.

     (b) If the Indenture Trustee collects any money or property pursuant to this Article V, it
shall pay out the money or property in the following order:

     FIRST: first, to the Indenture Trustee for any amounts due under Section 6.07 and then
to the Servicer for any due and unpaid Servicing Fee;

     SECOND: to the Hedge Counterparty, an amount equal to the net scheduled periodic
payments, if any, then due under the Hedges,

     THIRD: on a pro rata basis, (1) to the Class A Noteholders for amounts due and unpaid
on the Class A Notes for interest (including any premium) ratably, and (2) to the Hedge
Counterparty swap termination payments (but excluding Subordinated Termination Payments)
then due under the Hedges, in each case, without preference or priority of any kind,
according to the amounts due and payable on the Class A Notes for interest (including any
premium) and the amounts then due under the Hedges, as applicable;

     FOURTH: to the Class B Noteholders for amounts due and unpaid on the Class B Notes for
interest (including premium), ratably, without preference or priority of any kind, according
to the amounts due and payable on the Class B Notes for interest (including premium);
provided that if payment of the Notes has been accelerated because of an Event of Default
specified in clause (i), (ii), (iv) or (v) of Section 5.01, then the payments due to the
Class B Noteholders pursuant to this clause FOURTH shall instead be made only after the
Outstanding Amount of the Class A Notes has been reduced to zero pursuant to clause (d) in
clause SIXTH below;

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     FIFTH: to the Class C Noteholders for amounts due and unpaid on the Class C Notes for
interest (including premium), ratably, without preference or priority of any kind, according
to the amounts due and payable on the Class C Notes for interest (including premium);
provided that if payment of the Notes has been accelerated because of an Event of Default
specified in clause (i), (ii), (iv) or (v) of Section 5.01, then the payments due to the
Class C Noteholders pursuant to this clause FIFTH shall instead be made only after the
Outstanding Amount of the Class B Notes has been reduced to zero pursuant to clause (e) in
clause SIXTH below;

     SIXTH: to the Noteholders in the following order of priority:

     (a) to Holders of the Class A-1 Notes for amounts due and unpaid on the Class A-1 Notes
for principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class A-1 Notes for principal, until the Outstanding Amount of the
Class A-1 Notes is reduced to zero;

     (b) to Holders of the Class A-2a Notes and the Class A-2b Notes, pro rata for amounts
due and unpaid on the Class A-2a Notes and the Class A-2b Notes for principal, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Class A-2a Notes and the Class A-2b Notes for principal, until the Outstanding Amount of the
Class A-2a Notes and the Class A-2b Notes is reduced to zero;

     (c) to Holders of the Class A-3a Notes and the Class A-3b Notes, pro rata for amounts
due and unpaid on the Class A-3a Notes and the Class A-3b Notes for principal, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Class A-3a Notes and the Class A-3b Notes for principal, until the Outstanding Amount of the
Class A-3a Notes and the Class A-3b Notes is reduced to zero;

     (d) to Holders of the Class A-4 Notes for amounts due and unpaid on the Class A-4 Notes
for principal, ratably, without preference or priority of any kind, according to the amounts
due and payable on the Class A-4 Notes for principal, until the Outstanding Amount of the
Class A-4 Notes is reduced to zero;

     (e) to Holders of the Class B Notes for amounts due and unpaid on the Class B Notes for
principal, ratably, without preference or priority of any kind, according to amounts due and
payable on the Class B Notes for principal, until the Outstanding Amount of the Class B
Notes is reduced to zero; and

     (f) to Holders of the Class C Notes for amounts due and unpaid on the Class C Notes for
principal, ratably, without preference or priority of any kind, according to amounts due and
payable on the Class C Notes for principal, until the Outstanding Amount of the Class C
Notes is reduced to zero;

     SEVENTH: to the Hedge Counterparty, an amount equal to the Subordinated Termination
Payments, if any, then due under the Hedges; and

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EIGHTH: to Holders of the Class D Notes the net Total Distribution Amount remaining.

The Indenture Trustee may fix a record date and payment date for any payment to Noteholders
pursuant to this Section. At least 15 days before such record date, the Issuer shall mail to each
Noteholder and the Indenture Trustee a notice that states the record date, the payment date and the
amount to be paid.

     SECTION
5.05. Optional Preservation of the Receivables. If the Notes have been
declared to be due and payable under Section 5.02 following an Event of Default and such
declaration and its consequences have not been rescinded and annulled, the Indenture Trustee may,
but need not, elect to maintain possession of the Trust Estate. It is the desire of the parties
hereto and the Noteholders that there be at all times sufficient funds for the payment of principal
of and interest on the Notes, and the Indenture Trustee shall take such desire into account when
determining whether or not to maintain possession of the Trust Estate. In determining whether to
maintain possession of the Trust Estate, the Indenture Trustee may, but need not, obtain and rely
upon an opinion of an Independent investment banking or accounting firm of national reputation as
to the feasibility of such proposed action and as to the sufficiency of the Trust Estate for such
purpose.

     SECTION
5.06. Limitation of Suits. No Holder of any Note shall have any right to
institute any Proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:

          (i) such Holder has previously given written notice to the Indenture Trustee of a continuing
Event of Default;

          (ii) the Holders of not less than 25% of the Outstanding Amount of the Notes have made written
request to the Indenture Trustee to institute such Proceeding in respect of such Event of Default
in its own name as Indenture Trustee hereunder;

          (iii) such Holder or Holders have offered to the Indenture Trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in complying with
such request;

          (iv) the Indenture Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute such Proceedings; and

          (v) no direction inconsistent with such written request has been given to the Indenture
Trustee during such 60-day period by the Holders of a majority of the Outstanding Amount of the
Notes.

It is understood and intended that no one or more Holders of Notes shall have any right in any
manner whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb
or prejudice the rights of any other Holders of Notes or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

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     In the event the Indenture Trustee shall receive conflicting or inconsistent requests and
indemnity from two or more groups of Holders of Notes, each representing less than a majority of
the Outstanding Amount of the Notes, the Indenture Trustee in its sole discretion may determine
what action, if any, shall be taken, notwithstanding any other provisions of this Indenture.

     SECTION 5.07. Unconditional Rights of Noteholders To Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Note on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

     SECTION 5.08. Restoration of Rights and Remedies. If the Indenture Trustee or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such Proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Indenture Trustee or to such Noteholder, then and in every such case the Issuer, the
Indenture Trustee and the Noteholders shall, subject to any determination in such Proceeding, be
restored severally and respectively to their former positions hereunder, and thereafter all rights
and remedies of the Indenture Trustee and the Noteholders shall continue as though no such
Proceeding had been instituted.

     SECTION 5.09. Rights and Remedies Cumulative. No right or remedy herein conferred upon
or reserved to the Indenture Trustee or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy.

     SECTION 5.10. Delay or Omission Not a Waiver. No delay or omission of the Indenture
Trustee or any Holder of any Note to exercise any right or remedy accruing upon any Default or
Event of Default shall impair any such right or remedy or constitute a waiver of any such Default
or Event of Default or an acquiescence therein. Every right and remedy given by this Article V or
by law to the Indenture Trustee or to the Noteholders may be exercised from time to time, and as
often as may be deemed expedient, by the Indenture Trustee or by the Noteholders, as the case may
be.

     SECTION 5.11. Control by Controlling Class. The Holders of a majority of the
Outstanding Amount of the Controlling Class shall have the right to direct the time, method and
place of conducting any Proceeding for any remedy available to the Indenture Trustee with respect
to the Notes or exercising any trust or power conferred on the Indenture Trustee; provided that:

          (i) such direction shall not be in conflict with any rule of law or with this Indenture;

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          (ii) subject to the express terms of Section 5.04, any direction to the Indenture Trustee to
sell or liquidate the Trust Estate shall be by Holders of Notes representing not less than 100% of
the Outstanding Amount of the Controlling Class;

          (iii) if the conditions set forth in Section 5.05 have been satisfied and the Indenture
Trustee elects to retain the Trust Estate pursuant to such Section, then any direction to the
Indenture Trustee by Holders of Notes representing less than 100% of the Outstanding Amount of the
Controlling Class to sell or liquidate the Trust Estate shall be of no force and effect; and

          (iv) the Indenture Trustee may take any other action deemed proper by the Indenture Trustee
that is not inconsistent with such direction.

Notwithstanding the rights of Noteholders set forth in this Section, subject to Section 6.01, the
Indenture Trustee need not take any action that it determines might involve it in liability or
might materially adversely affect the rights of any Noteholders not consenting to such action.

     SECTION 5.12. Waiver of Past Defaults. Prior to the declaration of the acceleration of
the maturity of the Notes as provided in Section 5.02, the Holders of Notes of not less than a
majority of the Outstanding Amount of the Controlling Class may waive any past Default or Event of
Default and its consequences except a Default (a) in payment of principal of or interest on any of
the Notes or (b) in respect of a covenant or provision hereof which cannot be modified or amended
without the consent of the Holder of each Note. In the case of any such waiver, the Issuer, the
Indenture Trustee and the Holders of the Notes shall be restored to their former positions and
rights hereunder, respectively; but no such waiver shall extend to any subsequent or other Default
or impair any right consequent thereto.

     Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and
not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured
and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereto.

     SECTION 5.13. Undertaking for Costs. All parties to this Indenture agree, and each
Holder of a Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any court
may in its discretion require, in any suit for the enforcement of any right or remedy under this
Indenture, or in any suit against the Indenture Trustee for any action taken, suffered or omitted
by it as Indenture Trustee, the filing by any party litigant in such suit of an undertaking to pay
the costs of such suit, and that such court may in its discretion assess reasonable costs,
including reasonable attorneys’ fees, against any party litigant in such suit, having due regard to
the merits and good faith of the claims or defenses made by such party litigant; but the provisions
of this Section shall not apply to (a) any suit instituted by the Indenture Trustee, (b) any suit
instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate more
than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder for
the enforcement of the payment of principal of or interest on any Note on or after the respective
due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after
the Redemption Date).

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     SECTION 5.14. Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Indenture Trustee, but will suffer and permit the
execution of every such power as though no such law had been enacted.

     SECTION 5.15. Action on Notes. The Indenture Trustee’s right to seek and recover
judgment on the Notes or under this Indenture shall not be affected by the seeking, obtaining or
application of any other relief under or with respect to this Indenture. Neither the lien of this
Indenture nor any rights or remedies of the Indenture Trustee or the Noteholders shall be impaired
by the recovery of any judgment by the Indenture Trustee against the Issuer or by the levy of any
execution under such judgment upon any portion of the Trust Estate or upon any of the assets of the
Issuer. Any money or property collected by the Indenture Trustee shall be applied in accordance
with Section 5.04(b).

     SECTION 5.16. Performance and Enforcement of Certain Obligations. (a) Promptly
following a request from the Indenture Trustee to do so and at the Administrator’s expense, the
Issuer shall take all such lawful action as the Indenture Trustee may request to compel or secure
the performance and observance by the Seller or the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing Agreement or by the
Seller or the Company, as applicable, of each of their obligations under or in connection with the
Purchase Agreement, and to exercise any and all rights, remedies, powers and privileges lawfully
available to the Issuer under or in connection with the Sale and Servicing Agreement to the extent
and in the manner directed by the Indenture Trustee, including the transmission of notices of
default on the part of the Seller or the Servicer thereunder and the institution of legal or
administrative actions or proceedings to compel or secure performance by the Seller or the Servicer
of each of their obligations under the Sale and Servicing Agreement.

     (b) If an Event of Default has occurred and is continuing, the Indenture Trustee may, and at
the direction (which direction shall be in writing or by telephone (confirmed in writing promptly
thereafter)) of the Holders of 66 2/3% of the Outstanding Amount of the Controlling Class shall,
exercise all rights, remedies, powers, privileges and claims of the Issuer against the Seller or
the Servicer under or in connection with the Sale and Servicing Agreement, or against the Company
or the Seller under or in connection with the Purchase Agreement, including the right or power to
take any action to compel or secure performance or observance by the Seller or the Servicer, or the
Company or the Seller, as the case may be, of each of their obligations to the Issuer thereunder
and to give any consent, request, notice, direction, approval, extension or waiver under the Sale
and Servicing Agreement or the Purchase Agreement, as the case may be, and any right of the Issuer
to take such action shall be suspended.

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ARTICLE VI

The Indenture Trustee

     SECTION 6.01. Duties of Indenture Trustee. (a) If an Event of Default has occurred and
is continuing, the Indenture Trustee shall exercise the rights and powers vested in it by this
Indenture and use the same degree of care and skill in their exercise as a prudent person would
exercise or use under the circumstances in the conduct of such person’s own affairs.

     (b) Except during the continuance of an Event of Default:

          (i) the Indenture Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be read into
this Indenture against the Indenture Trustee; and

          (ii) in the absence of bad faith on its part, the Indenture Trustee may conclusively rely, as
to the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Indenture Trustee and conforming to the requirements of
this Indenture; however, the Indenture Trustee shall examine the certificates and opinions to
determine whether or not they conform to the requirements of this Indenture.

     (c) The Indenture Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that:

          (i) this paragraph does not limit the effect of paragraph (b) of this Section;

          (ii) the Indenture Trustee shall not be liable for any error of judgment made in good faith by
a Responsible Officer unless it is proved that the Indenture Trustee was negligent in ascertaining
the pertinent facts; and

          (iii) the Indenture Trustee shall not be liable with respect to any action it takes or omits
to take in good faith in accordance with a direction received by it pursuant to Section 5.11.

     (d) Every provision of this Indenture that in any way relates to the Indenture Trustee is
subject to paragraphs (a), (b), (c) and (g) of this Section.

     (e) The Indenture Trustee shall not be liable for interest on any money received by it except
as the Indenture Trustee may agree in writing with the Issuer.

     (f) Money held in trust by the Indenture Trustee need not be segregated from other funds
except to the extent required by law or the terms of this Indenture or the Sale and Servicing
Agreement.

     (g) No provision of this Indenture shall require the Indenture Trustee to expend or risk its
own funds or otherwise incur financial liability in the performance of any of its duties hereunder
or in the exercise of any of its rights or powers, if it shall have reasonable grounds to

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believe that repayment of such funds or indemnity reasonably satisfactory to it against such
risk or liability is not reasonably assured to it.

     (h) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Indenture Trustee shall be subject to the provisions of this Section
and to the provisions of the TIA.

     SECTION 6.02. Rights of Indenture Trustee. (a) The Indenture Trustee may rely on any
document believed by it to be genuine and to have been signed or presented by the proper person.
The Indenture Trustee need not investigate any fact or matter stated in the document.

     (b) Before the Indenture Trustee acts or refrains from acting, it may require an Officer’s
Certificate or an Opinion of Counsel. The Indenture Trustee shall not be liable for any action it
takes or omits to take in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.

     (c) The Indenture Trustee may execute any of the trusts or powers hereunder or perform any
duties hereunder either directly or by or through agents or attorneys or a custodian or nominee,
and the Indenture Trustee shall not be responsible for any misconduct or negligence on the part of,
or for the supervision of, any such agent, attorney, custodian or nominee appointed with due care
by it hereunder.

     (d) The Indenture Trustee shall not be liable for any action it takes or omits to take in good
faith which it believes to be authorized or within its rights or powers; provided, that the
Indenture Trustee’s conduct does not constitute willful misconduct, negligence or bad faith.

     (e) The Indenture Trustee may consult with counsel, and the advice or opinion of counsel with
respect to legal matters relating to this Indenture and the Notes shall be full and complete
authorization and protection from liability in respect to any action taken, omitted or suffered by
it hereunder in good faith and in accordance with the advice or opinion of such counsel.

     SECTION 6.03. Individual Rights of Indenture Trustee. The Indenture Trustee in its
individual or any other capacity may become the owner or pledgee of Notes and may otherwise deal
with the Issuer or its Affiliates with the same rights it would have if it were not Indenture
Trustee. Any Paying Agent, Note Registrar, co-registrar or co-paying agent may do the same with
like rights. However, the Indenture Trustee must comply with Sections 6.11 and 6.12.

     SECTION 6.04. Indenture Trustee’s Disclaimer. The Indenture Trustee shall not be
responsible for and makes no representation as to the validity or adequacy of this Indenture or the
Notes, it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it
shall not be responsible for any statement of the Issuer in the Indenture or in any document issued
in connection with the sale of the Notes or in the Notes other than the Indenture Trustee’s
certificate of authentication.

     SECTION 6.05. Notice of Defaults. If a Default occurs and is continuing and if it is
known to a Responsible Officer of the Indenture Trustee, the Indenture Trustee shall mail to

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each Noteholder notice of the Default within 90 days after it occurs. Except in the case of a
Default in payment of principal of or interest on any Note (including payments pursuant to the
mandatory redemption provisions of such Note), the Indenture Trustee may withhold the notice if and
so long as a committee of its Responsible Officers in good faith determines that withholding the
notice is in the interests of Noteholders.

     SECTION 6.06. Reports by Indenture Trustee to Holders of Senior Notes. The Indenture
Trustee shall deliver such information that is either required by applicable law or is requested in
writing by a Noteholder of Senior Notes in order to enable such Noteholder to prepare its federal
and state income tax returns.

     SECTION 6.07. Compensation and Indemnity. The Issuer shall, or shall cause the
Administrator to, pay to the Indenture Trustee from time to time reasonable compensation for its
services pursuant to a fee agreement between the Administrator and the Indenture Trustee. The
Indenture Trustee’s compensation shall not be limited by any law on compensation of a trustee of an
express trust. The Issuer shall, or shall cause the Administrator to, reimburse the Indenture
Trustee for all reasonable out-of-pocket expenses, disbursements and advances incurred or made by
it, including costs of collection, in addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the Indenture
Trustee’s agents, counsel, accountants and experts. The Issuer shall, or shall cause the
Administrator to, indemnify and hold harmless the Indenture Trustee and its officers, directors,
employees, representatives and agents against any and all loss, liability, tax (other than taxes
based on the income of the Indenture Trustee) or expense (including attorneys’ fees) of whatever
kind or nature regardless of their merit directly or indirectly incurred by it or them without
willful misconduct, negligence or bad faith on their part, arising out of or in connection with the
acceptance or administration of the transactions contemplated by this Indenture, including the
reasonable costs and expenses of defending themselves against any claim or liability in connection
with the exercise or performance of any of their powers or duties under this Indenture or under any
of the other Basic Documents. The Indenture Trustee shall notify the Issuer and the Administrator
promptly of any claim for which it may seek indemnity. Failure by the Indenture Trustee to so
notify the Issuer and the Administrator shall not relieve the Issuer or the Administrator of its
obligations hereunder. The Issuer shall, or shall cause the Administrator to, defend any such
claim, and the Indenture Trustee may have separate counsel and the Issuer shall, or shall cause the
Administrator to, pay the fees and expenses of such counsel. Neither the Issuer nor the
Administrator need reimburse any expense or indemnify against any loss, liability or expense
incurred by the Indenture Trustee through the Indenture Trustee’s own willful misconduct,
negligence or bad faith.

     The Issuer’s payment obligations to the Indenture Trustee pursuant to this Section shall
survive the discharge of this Indenture. When the Indenture Trustee incurs expenses after the
occurrence of a Default specified in Section 5.01(iv) or (v) with respect to the Issuer, the
expenses are intended to constitute expenses of administration under Title 11 of the United States
Code or any other applicable federal or state bankruptcy, insolvency or similar law.

     SECTION 6.08. Replacement of Indenture Trustee. No resignation or removal of the
Indenture Trustee and no appointment of a successor Indenture Trustee shall become effective until
the acceptance of appointment by the successor Indenture Trustee pursuant to this

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Section 6.08. The Indenture Trustee may resign at any time by so notifying the Issuer. The
Holders of a majority in Outstanding Amount of the Notes may remove the Indenture Trustee by so
notifying the Indenture Trustee and may appoint a successor Indenture Trustee. The Issuer shall
remove the Indenture Trustee if:

          (i) the Indenture Trustee fails to comply with Section 6.11;

          (ii) the Indenture Trustee is adjudged a bankrupt or insolvent;

          (iii) a receiver or other public officer takes charge of the Indenture Trustee or its
property; or

          (iv) the Indenture Trustee otherwise becomes incapable of acting.

If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of Indenture
Trustee for any reason (the Indenture Trustee in such event being referred to herein as the
retiring Indenture Trustee), the Issuer shall promptly appoint a successor Indenture Trustee.

     A successor Indenture Trustee shall deliver a written acceptance of its appointment to the
retiring Indenture Trustee and to the Issuer. Thereupon the resignation or removal of the retiring
Indenture Trustee shall become effective, and the successor Indenture Trustee shall have all the
rights, powers and duties of the Indenture Trustee under this Indenture. The successor Indenture
Trustee shall mail a notice of its succession to Noteholders. The retiring Indenture Trustee shall
promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.

     If a successor Indenture Trustee does not take office within 60 days after the retiring
Indenture Trustee resigns or is removed, the retiring Indenture Trustee, the Issuer or the Holders
of a majority in Outstanding Amount of the Notes may petition any court of competent jurisdiction
for the appointment of a successor Indenture Trustee.

     If the Indenture Trustee fails to comply with Section 6.11, any Noteholder may petition any
court of competent jurisdiction for the removal of the Indenture Trustee and the appointment of a
successor Indenture Trustee.

     Notwithstanding the replacement of the Indenture Trustee pursuant to this Section, the
Issuer’s and the Administrator’s obligations under Section 6.07 shall continue for the benefit of
the retiring Indenture Trustee.

     SECTION
6.09. Successor Indenture Trustee by Merger. If the Indenture Trustee
consolidates with, merges or converts into, or transfers all or substantially all its corporate
trust business or assets to, another corporation or banking association, the resulting, surviving
or transferee corporation without any further act shall be the successor Indenture Trustee;
provided, that such corporation or banking association shall be otherwise qualified and eligible
under Section 6.11. The Indenture Trustee shall provide the Rating Agencies prior written notice
of any such transaction.

     In case at the time such successor or successors by merger, conversion or consolidation to the
Indenture Trustee shall succeed to the trusts created by this Indenture any of the Notes shall

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have been authenticated but not delivered, any such successor to the Indenture Trustee may
adopt the certificate of authentication of any predecessor trustee and deliver such Notes so
authenticated; and in case at that time any of the Notes shall not have been authenticated, any
successor to the Indenture Trustee may authenticate such Notes either in the name of any
predecessor hereunder or in the name of the successor to the Indenture Trustee; and in all such
cases such certificates shall have the full force which it is anywhere in the Notes or in this
Indenture provided that the certificate of the Indenture Trustee shall have.

     SECTION 6.10. Appointment of Co-Indenture Trustee or Separate Indenture Trustee. (a)
Notwithstanding any other provisions of this Indenture, at any time, for the purpose of meeting any
legal requirement of any jurisdiction in which any part of the Trust Estate may at the time be
located, the Indenture Trustee shall have the power and may execute and deliver all instruments to
appoint one or more Persons to act as a co-trustee or co-trustees, or separate trustee or separate
trustees, of all or any part of the Trust, and to vest in such Person or Persons, in such capacity
and for the benefit of the Noteholders, such title to the Trust Estate, or any part hereof, and,
subject to the other provisions of this Section, such powers, duties, obligations, rights and
trusts as the Indenture Trustee may consider necessary or desirable. No co-trustee or separate
trustee hereunder shall be required to meet the terms of eligibility as a successor trustee under
Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or separate trustee
shall be required under Section 6.08 hereof.

     (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:

          (i) all rights, powers, duties and obligations conferred or imposed upon the Indenture Trustee
shall be conferred or imposed upon and exercised or performed by the Indenture Trustee and such
separate trustee or co-trustee jointly (it being understood that such separate trustee or
co-trustee is not authorized to act separately without the Indenture Trustee joining in such act),
except to the extent that under any law of any jurisdiction in which any particular act or acts are
to be performed the Indenture Trustee shall be incompetent or unqualified to perform such act or
acts, in which event such rights, powers, duties and obligations (including the holding of title to
the Trust Estate or any portion thereof in any such jurisdiction) shall be exercised and performed
singly by such separate trustee or co-trustee, but solely at the direction of the Indenture
Trustee;

          (ii) no trustee hereunder shall be personally liable by reason of any act or omission of any
other trustee hereunder; and

          (iii) the Indenture Trustee may at any time accept the resignation of or remove any separate
trustee or co-trustee.

     (c) Any notice, request or other writing given to the Indenture Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as effectively as if given
to each of them. Every instrument appointing any separate trustee or co-trustee shall refer to
this Indenture and the conditions of this Article VI. Each separate trustee and co-trustee, upon
its acceptance of the trusts conferred, shall be vested with the estates or property specified in
its instrument of appointment, either jointly with the Indenture Trustee or separately, as may

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be provided therein, subject to all the provisions of this Indenture, specifically including
every provision of this Indenture relating to the conduct of, affecting the liability of, or
affording protection to, the Indenture Trustee. Every such instrument shall be filed with the
Indenture Trustee.

     (d) Any separate trustee or co-trustee may at any time constitute the Indenture Trustee, its
agent or attorney-in-fact with full power and authority, to the extent not prohibited by law, to do
any lawful act under or in respect of this Indenture on its behalf and in its name. If any
separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of
its estates, properties, rights, remedies and trusts shall vest in and be exercised by the
Indenture Trustee, to the extent permitted by law, without the appointment of a new or successor
trustee.

     SECTION 6.11. Eligibility; Disqualification. (a)  The Indenture Trustee shall at all
times satisfy the requirements of TIA § 310(a). The Indenture Trustee shall have a combined
capital and surplus of at least $50,000,000 as set forth in its most recent published annual report
of condition, and the time deposits of the Indenture Trustee shall be rated at least “A-1” by
Standard & Poor’s, “P-1” by Moody’s, and “F1” by Fitch. The Indenture Trustee shall comply with
TIA § 310(b), including the optional provision permitted by the second sentence of TIA § 310(b)(9);
provided, however, that there shall be excluded from the operation of TIA § 310(b)(1) any indenture
or indentures under which other securities of the Issuer are outstanding if the requirements for
such exclusion set forth in TIA § 310(b)(1) are met.

     (b) Within ninety (90) days after ascertaining the occurrence of an Event of Default which
shall not have been cured or waived, unless authorized by the Commission, the Indenture Trustee
shall resign with respect to the Class A Notes, the Class B Notes, the Class C Note and the Class D
Notes in accordance with Section 6.08 of this Indenture, and the Issuer shall appoint a successor
Indenture Trustee for each of such Classes, as applicable, so that there will be separate Indenture
Trustees for the Class A Notes, the Class B Notes, the Class C Notes and the Class D Notes. In the
event the Indenture Trustee fails to comply with the terms of the preceding sentence, the Indenture
Trustee shall comply with clauses (ii) and (iii) of TIA Section 310(b).

     (c) In the case of the appointment hereunder of a successor Indenture Trustee with respect to
any Class of Notes pursuant to this Section 6.11, the Issuer, the retiring Indenture Trustee and
the successor Indenture Trustee with respect to such Class of Notes shall execute and deliver an
indenture supplemental hereto wherein each successor Indenture Trustee shall accept such
appointment and which (i) shall contain such provisions as shall be necessary or desirable to
transfer and confirm to, and to vest in, the successor Indenture Trustee all the rights, powers,
trusts and duties of the retiring Indenture Trustee with respect to the Notes of the Class to which
the appointment of such successor Indenture Trustee relates, (ii) if the retiring Indenture Trustee
is not retiring with respect to all Classes of Notes, shall contain such provisions as shall be
deemed necessary or desirable to confirm that all the rights, powers, trusts and duties of the
retiring Indenture Trustee with respect to the Notes of each Class as to which the retiring
Indenture Trustee is not retiring shall continue to be vested in the Indenture Trustee and (iii)
shall add to or change any of the provisions of this Indenture as shall be necessary to provide for
or facilitate the administration of the trusts hereunder by more than one Indenture Trustee, it
being understood that nothing herein or in such supplemental indenture shall constitute such
Indenture

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Trustees co-trustees of the same trust and that each such Indenture Trustee shall be a trustee
of a trust or trusts hereunder separate and apart from any trust or trusts hereunder administered
by any other such Indenture Trustee; and upon the removal of the retiring Indenture Trustee shall
become effective to the extent provided herein.

     SECTION 6.12. Preferential Collection of Claims Against Issuer. The Indenture Trustee
shall comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). An
Indenture Trustee who has resigned or been removed shall be subject to TIA § 311(a) to the extent
indicated.

     SECTION
6.13. Pennsylvania Motor Vehicle Sales Finance Act Licenses. The Indenture
Trustee shall use its best efforts to maintain the effectiveness of all licenses required under the
Pennsylvania Motor Vehicle Sales Finance Act in connection with this Indenture and the transactions
contemplated hereby until the lien and security interest of this Indenture shall no longer be in
effect in accordance with the terms hereof.

ARTICLE VII

Noteholders’ Lists and Reports.

     SECTION 7.01. Issuer To Furnish Indenture Trustee Names and Addresses of Noteholders.
The Issuer will furnish or cause to be furnished to the Indenture Trustee (a) not more than five
days after the earlier of (i) each Record Date and (ii) three months after the last Record Date, a
list, in such form as the Indenture Trustee may reasonably require, of the names and addresses of
the Holders of Notes as of such Record Date, and (b) at such other times as the Indenture Trustee
may request in writing, within 30 days after receipt by the Issuer of any such request, a list of
similar form and content as of a date not more than 10 days prior to the time such list is
furnished; provided, however, that so long as the Indenture Trustee is the Note Registrar, no such
list shall be required to be furnished.

     SECTION 7.02. Preservation of Information; Communications to Noteholders. (a) The
Indenture Trustee shall preserve, in as current a form as is reasonably practicable, the names and
addresses of the Holders of Notes contained in the most recent list furnished to the Indenture
Trustee as provided in Section 7.01 and the names and addresses of Holders of Notes received by the
Indenture Trustee in its capacity as Note Registrar. The Indenture Trustee may destroy any list
furnished to it as provided in such Section 7.01 upon receipt of a new list so furnished.

     (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect
to their rights under this Indenture or under the Notes.

     (c) The Issuer, the Indenture Trustee and the Note Registrar shall have the protection of
TIA § 312(c).

     SECTION 7.03. Reports by Issuer. (a) The Issuer shall:

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          (i) file with the Indenture Trustee, within 15 days after the Issuer is required to file the
same with the Commission, copies of the annual reports and of the information, documents and other
reports (or copies of such portions of any of the foregoing as the Commission may from time to time
by rules and regulations prescribe) that the Issuer may be required to file with the Commission
pursuant to Section 13 or 15(d) of the Exchange Act;

          (ii) file with the Indenture Trustee and the Commission in accordance with rules and
regulations prescribed from time to time by the Commission such additional information, documents
and reports with respect to compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

          (iii) supply to the Indenture Trustee (and the Indenture Trustee shall transmit by mail to all
Noteholders described in TIA § 313(c)) such summaries of any information, documents and reports
required to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.03(a) and by
rules and regulations prescribed from time to time by the Commission.

     (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on
December 31 of each year.

     SECTION 7.04. Reports by Indenture Trustee. If required by TIA § 313(a), within
60 days after each February 1 beginning with February 1, 2009 the Indenture Trustee shall mail to
each Noteholder as required by TIA § 313(c) a brief report dated as of such date that complies with
TIA § 313(a). The Indenture Trustee also shall comply with TIA § 313(b).

     A copy of each report at the time of its mailing to Noteholders shall be filed by the
Indenture Trustee with the Commission and each stock exchange, if any, on which the Notes are
listed. The Issuer shall notify the Indenture Trustee if and when the Notes are listed on any
stock exchange.

ARTICLE VIII

Accounts, Disbursements and Releases

     SECTION 8.01. Collection of Money. Except as otherwise expressly provided herein, the
Indenture Trustee may demand payment or delivery of, and shall receive and collect, directly and
without intervention or assistance of any fiscal agent or other intermediary, all money and other
property payable to or receivable by the Indenture Trustee pursuant to this Indenture. The
Indenture Trustee shall apply all such money received by it as provided in this Indenture. Except
as otherwise expressly provided in this Indenture, if any default occurs in the making of any
payment or performance under any agreement or instrument that is part of the Trust Estate, the
Indenture Trustee may take such action as may be appropriate to enforce such payment or
performance, including the institution and prosecution of appropriate Proceedings. Any such action
shall be without prejudice to any right to claim a Default or Event of Default under this Indenture
and any right to proceed thereafter as provided in Article V.

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     SECTION 8.02. Deposit Account (a) On or prior to the Closing Date, the Issuer shall
cause the Servicer to establish and maintain, in the name of the Indenture Trustee, for the benefit
of the Secured Parties, the Deposit Account as provided in Section 5.01 of the Sale and Servicing
Agreement. The Note Principal Distribution Account and the Reserve Account shall be named
subaccounts of the Deposit Account.

     (b) On or before each Payment Date, the Total Distribution Amount (net of the Servicing Fee
for such Payment Date and any previously unpaid Servicing Fees and any other distributable amounts
that are to be allocated for distribution or release to the Seller) with respect to the preceding
Collection Period will be deposited in the Deposit Account as provided in Section 5.02 of the Sale
and Servicing Agreement. The Indenture Trustee shall allocate amounts in the Deposit Account for
distribution to the Secured Parties in accordance with Sections 5.05 and 5.06 of the Sale and
Servicing Agreement.

     (c) Subject to Section 5.04(b), on each Payment Date and the Redemption Date, the Indenture
Trustee shall distribute all amounts allocated in the Deposit Account for distribution to the Hedge
Counterparty and the Noteholders in respect of the Notes to the extent of amounts due and unpaid on
the Notes for principal, interest (including any premium) and other amounts in the following
amounts and in the following order of priority (except as otherwise provided in Section 5.04(b)):

          (i) to the Hedge Counterparty, an amount equal to the net scheduled periodic payments, if any;
and

          (ii) on a pro rata basis, (1) to the Hedge Counterparty, an amount equal to termination
payments, if any, excluding Subordinated Termination Payments and (2) accrued and unpaid interest
on the Class A Notes; provided, that if there are not sufficient funds allocated in the Deposit
Account for distribution to the Hedge Counterparty and the Class A Noteholders to pay the entire
amount of such termination payments and accrued and unpaid interest then due on the Class A Notes,
respectively, the amount allocated in the Deposit Account for distribution to the Hedge
Counterparty and the Class A Noteholders shall be applied to the payment of such termination
payments and such interest on the Class A Notes, respectively, pro rata on the basis of the total
of such payments or interest, respectively, due on the Hedge Counterparty and the Class A Notes;
and

          (iii) accrued and unpaid interest on the Class B Notes; provided, that if there are not
sufficient funds allocated in the Deposit Account for distribution pursuant to this clause to the
Class B Noteholders to pay the entire amount of accrued and unpaid interest then due on the Class B
Notes, the amount allocated in the Deposit Account for distribution to the Class B Noteholders
shall be applied to the payment of such interest on the Class B Notes pro rata on the basis of the
total of such interest due on the Class B Notes; and

          (iv) accrued and unpaid interest on the Class C Notes; provided, that if there are not
sufficient funds allocated in the Deposit Account for distribution to the Class C Noteholders to
pay the entire amount of accrued and unpaid interest then due on the Class C Notes, the amount
allocated in the Deposit Account for distribution to the Class C Noteholders

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shall be applied to the payment of such interest on the Class C Notes pro rata on the basis of
the total of such interest due on the Class C Notes; and

          (v) the amount in the Note Principal Distribution Account shall be applied to pay principal on
the Notes and other amounts set forth below in the following order of priority:

               (A) to the Holders of the Class A-1 Notes on account of principal until the aggregate
Outstanding Amount of the Class A-1 Notes is reduced to zero;

               (B) to the Holders of the Class A-2a Notes and the Class A-2b Notes, pro rata, on account of
principal until the aggregate Outstanding Amount of the Class A-2a Notes and the Class A-2b Notes
is reduced to zero;

               (C) to the Holders of the Class A-3a Notes and the Class A-3b Notes, pro rata, on account of
principal until the aggregate Outstanding Amount of the Class A-3a Notes and the Class A-3b Notes
is reduced to zero;

               (D) to the Holders of the Class A-4 Notes, on account of principal until the aggregate
Outstanding Amount of the Class A-4 Notes is reduced to zero;

               (E) to the Holders of the Class B Notes on account of principal until the aggregate
Outstanding Amount of the Class B Notes is reduced to zero;

               (F) to the Holders of the Class C Notes on account of principal until the aggregate
Outstanding Amount of the Class C Notes is reduced to zero;

               (G) to the Hedge Counterparty, an amount equal to the Subordinated Termination Payments, if
any; and

               (H) to the Holders of the Class D Notes any remaining balance.

If the amounts called for pursuant to Section 5.05(a)(ii)(K) of the Sale and Servicing Agreement
have not been netted out of the Total Distribution Amount as permitted under that Section under
certain circumstances, then after making the distributions to the Hedge Counterparty pursuant to
Section 5.05(a)(ii) of the Sale and Servicing Agreement and to the Noteholders in this Section
8.02(c) and subject to Section 8.04, the Indenture Trustee shall make the distributions, if any, to
the Class D Noteholders called for pursuant to Section 5.05(a)(ii)(K) of the Sale and Servicing
Agreement. For the avoidance of doubt, if payment of the Notes has been accelerated and such
acceleration has not been rescinded in accordance with this Indenture, the amounts in the Deposit
Account shall be paid in accordance with Section 5.04(b).

     SECTION 8.03. General Provisions Regarding Accounts. (a) So long as no Default or
Event of Default shall have occurred and be continuing, all or a portion of the funds in the
Deposit Account shall be invested in Eligible Investments and reinvested by the Indenture Trustee
(or the investment manager referred to in clause (2) of Section 5.01(b) of the Sale and Servicing
Agreement) upon Issuer Order, subject to the provisions of Section 5.01(b) of the Sale and
Servicing Agreement. All income or other gain from investments of moneys deposited in the Deposit
Account shall remain on deposit in the Deposit Account, and any loss resulting from

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such investments shall be charged to such account. The Issuer will not direct the Indenture
Trustee to make any investment of any funds or to sell any investment held in the Deposit Account
unless the security interest Granted and perfected in such Deposit Account will continue to be
perfected in such investment or the proceeds of such sale, in either case without any further
action by any Person, and, in connection with any direction to the Indenture Trustee to make any
such investment or sale, if requested by the Indenture Trustee, the Issuer shall deliver to the
Indenture Trustee an Opinion of Counsel, acceptable to the Indenture Trustee, to such effect.

     (b) Subject to Section 6.01(c), the Indenture Trustee shall not in any way be held liable by
reason of any insufficiency in the Deposit Account resulting from any loss on any Eligible
Investment included therein except for losses attributable to the Indenture Trustee’s failure to
make payments on such Eligible Investments issued by the Indenture Trustee, in its commercial
capacity as principal obligor and not as trustee, in accordance with their terms.

     (c) If (i) the Issuer (or the Servicer or any investment manager pursuant to Section 5.01(b)
of the Sale and Servicing Agreement) shall have failed to give investment directions for any funds
on deposit in the Deposit Account to the Indenture Trustee by 11:00 a.m. Eastern Time (or such
other time as may be agreed by the Issuer and Indenture Trustee) on any Business Day or (ii) a
Default or Event of Default shall have occurred and be continuing with respect to the Notes but the
Notes shall not have been declared due and payable pursuant to Section 5.02 or (iii) if such Notes
shall have been declared due and payable following an Event of Default but amounts collected or
receivable from the Trust Estate are being applied in accordance with Section 5.05 as if there had
not been such a declaration, then the Indenture Trustee shall, to the fullest extent practicable,
invest and reinvest funds in the Deposit Account in one or more Eligible Investments.

     SECTION
8.04. Release of Trust Estate. (a) Subject to the payment of its fees and
expenses pursuant to Section 6.07, the Indenture Trustee may, and when required by the provisions
of this Indenture shall, execute instruments to release property from the lien of this Indenture,
or convey the Indenture Trustee’s interest in the same, in a manner and under circumstances that
are not inconsistent with the provisions of this Indenture. No party relying upon an instrument
executed by the Indenture Trustee as provided in this Article VIII shall be bound to ascertain the
Indenture Trustee’s authority, inquire into the satisfaction of any conditions precedent or see to the application
of any moneys.

     (b) The Indenture Trustee shall, at such time as there are no Notes Outstanding and all sums
due the Indenture Trustee pursuant to Section 6.07 have been paid, release any remaining portion of
the Trust Estate that secured the Notes from the lien of this Indenture and release to the Issuer
or any other Person entitled thereto any funds then on deposit in the Deposit Account. The
Indenture Trustee shall release property from the lien of this Indenture pursuant to this
Section 8.04(b) only upon receipt of an Issuer Request accompanied by an Officer’s Certificate, an
Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA
§§ 314(c) and 314(d)(1) meeting the applicable requirements of Section 11.01.

     (c) Each Noteholder, by the acceptance of a Note, acknowledges that promptly following the
Closing Date the Indenture Trustee shall release, and does hereby release, the lien

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of this Indenture on each Fixed Value Payment and Fixed Value Finance Charges (subject to Section
5.03(b) of the Sale and Servicing Agreement), if any, assigned by the Issuer to the Seller, and
consents to such release.

     SECTION 8.05. Opinion of Counsel. The Indenture Trustee shall receive at least seven
days’ notice when requested by the Issuer to take any action pursuant to Section 8.04(a),
accompanied by copies of any instruments involved, and the Indenture Trustee shall also require,
except in connection with any action contemplated by Section 8.04(c), as a condition to such
action, an Opinion of Counsel, in form and substance satisfactory to the Indenture Trustee, stating
the legal effect of any such action, outlining the steps required to complete the same, and
concluding that all conditions precedent to the taking of such action have been complied with and
such action will not materially and adversely impair the security for the Notes or the rights of
the Noteholders in contravention of the provisions of this Indenture; provided, however, that such
Opinion of Counsel shall not be required to express an opinion as to the fair value of the Trust
Estate. Counsel rendering any such opinion may rely, without independent investigation, on the
accuracy and validity of any certificate or other instrument delivered to the Indenture Trustee in
connection with any such action.

ARTICLE IX

Supplemental Indentures

     SECTION 9.01. Supplemental Indentures Without Consent of Noteholders. (a) Without
the consent of the Holders of any Notes but with prior notice to the Rating Agencies and the Hedge
Counterparty, the Issuer and the Indenture Trustee, when authorized by an Issuer Order, at any time
and from time to time, may enter into one or more indentures supplemental hereto (which shall
conform to the provisions of the Trust Indenture Act as in force at the date of the execution
thereof), in form satisfactory to the Indenture Trustee, for any of the following purposes:

          (i) to correct or amplify the description of any property at any time subject to the lien of
this Indenture, or better to assure, convey and confirm unto the Indenture Trustee any property
subject or required to be subjected to the lien of this Indenture, or to subject to the lien of
this Indenture additional property;

          (ii) to evidence the succession, in compliance with the applicable provisions hereof, of
another person to the Issuer, and the assumption by any such successor of the covenants of the
Issuer herein and in the Notes contained;

          (iii) to add to the covenants of the Issuer, for the benefit of the Secured Parties, or to
surrender any right or power herein conferred upon the Issuer;

          (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Indenture
Trustee;

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          (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture that may be inconsistent with the prospectus, the prospectus supplement or
any other disclosure document prepared in connection with the offering of the Notes, any other
provision herein or in any supplemental indenture or to make any other provisions with respect to
matters or questions arising under this Indenture or in any supplemental indenture; provided, that
such action shall not adversely affect the interests of the Holders of the Notes;

          (vi) to evidence and provide for the acceptance of the appointment hereunder by a successor
trustee with respect to the Notes and to add to or change any of the provisions of this Indenture
as shall be necessary to facilitate the administration of the trusts hereunder by more than one
trustee, pursuant to the requirements of Article VI; or

          (vii) to modify, eliminate or add to the provisions of this Indenture to such extent as shall
be necessary to effect the qualification of this Indenture under the TIA or under any similar
federal statute hereafter enacted and to add to this Indenture such other provisions as may be
expressly required by the TIA.

The Indenture Trustee is hereby authorized to join in the execution of any such supplemental
indenture and to make any further appropriate agreements and stipulations that may be therein
contained.

     (b) The Issuer and the Indenture Trustee, when authorized by an Issuer Order, may, also
without the consent of any of the Holders of the Notes but with prior notice to the Rating Agencies
and the Hedge Counterparty, enter into an indenture or indentures supplemental hereto for the
purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions
of, this Indenture or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that such action shall not, as evidenced by an Opinion of Counsel,
adversely affect in any material respect the interests of any Noteholder.

     SECTION 9.02. Supplemental Indentures with Consent of Noteholders. The Issuer and the
Indenture Trustee, when authorized by an Issuer Order, also may, with prior notice to the Rating
Agencies and with the consent of the Hedge Counterparty and the Holders of not less than a majority
of the Outstanding Amount of the Notes, by Act of such Holders delivered to the Issuer and the
Indenture Trustee, enter into an indenture or indentures supplemental hereto for the purpose of
adding any provisions to, or changing in any manner or eliminating any of the provisions of, this
Indenture or of modifying in any manner the rights of the Holders of the Notes under this
Indenture; provided, however, that no such supplemental indenture shall, without the consent of the
Holder of each Outstanding Note affected thereby:

          (i) change the date of payment of any installment of principal of or interest on any Note, or
reduce the principal amount thereof, the Interest Rate thereon or the Redemption Price with respect
thereto, change the provisions of this Indenture relating to the application of collections on, or
the proceeds of the sale of, the Trust Estate to payment of principal of or interest on the Notes, or change any place of payment where, or the coin or currency in which,
any Note or the interest thereon is payable, or impair the right to institute suit for the
enforcement of the provisions of this Indenture requiring the application of funds available

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therefor, as provided in Article V, to the payment of any such amount due on the Notes on or
after the respective due dates thereof (or, in the case of redemption, on or after the Redemption
Date);

          (ii) reduce the percentage of the Outstanding Amount of the Notes, the consent of the Holders
of which is required for any such supplemental indenture, or the consent of the Holders of which is
required for any waiver of compliance with certain provisions of this Indenture or certain defaults
hereunder and their consequences provided for in this Indenture;

          (iii) modify or alter the provisions of the proviso to the definition of the term
“Outstanding”;

          (iv) reduce the percentage of the Outstanding Amount of the Notes required to direct the
Indenture Trustee to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section
5.04;

          (v) modify any provision of this Section except to increase any percentage specified herein or
to provide that certain additional provisions of this Indenture or the Basic Documents cannot be
modified or waived without the consent of the Holder of each Outstanding Note affected thereby;

          (vi) modify any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any Note on any Payment
Date (including the calculation of any of the individual components of such calculation) or to
affect the rights of the Holders of Notes to the benefit of any provisions for the mandatory
redemption of the Notes contained herein; or

          (vii) permit the creation of any lien ranking prior to or on a parity with the lien of this
Indenture with respect to any part of the Trust Estate or, except as otherwise permitted or
contemplated herein, terminate the lien of this Indenture on any property at any time subject
hereto or deprive the Holder of any Note of the security provided by the lien of this Indenture.

The Indenture Trustee may in its discretion determine whether or not any Notes would be affected by
any supplemental indenture and any such determination shall be conclusive upon the Holders of all
Notes, whether theretofore or thereafter authenticated and delivered hereunder. The Indenture
Trustee shall not be liable for any such determination made in good faith.

     It shall not be necessary for any Act of Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

     Promptly after the execution by the Issuer and the Indenture Trustee of any supplemental
indenture pursuant to this Section, the Indenture Trustee shall mail to the Holders of the Notes to
which such amendment or supplemental indenture relates a notice setting forth in general terms
the substance of such supplemental indenture. Any failure of the Indenture Trustee to mail
such notice, or any defect therein, shall not, however, in any way impair or affect the validity of
any such supplemental indenture.

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     Prior to the payment in full of the Senior Notes, this Indenture may be amended upon the
request of any Holder of Class D Notes to permit the transfer of the Class D Notes other than in
accordance with Section 2.04(d), which amendment may include the addition or deletion of any
provisions appropriate thereto; provided that the requesting Holder of Class D Notes shall
have (at its sole expense) supplied the Owner Trustee and the Indenture Trustee with an opinion of
nationally recognized counsel to the effect that the execution of such amendment will not result in
the recognition by any Holder of a Senior Note of a “taxable event” within the meaning of Section
1001 of the Code or adversely affect any rights or remedies of any Holder of a Senior Note.

     Notwithstanding the provisions of Sections 9.02 and 9.03, no amendment, indenture or
supplemental indenture hereto shall be effective in the event that such amendment, indenture or
supplemental indenture materially and adversely effects the Hedge Counterparty and the Hedge
Counterparty’s prior written consent shall not have been obtained.

     SECTION 9.03. Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the
modification thereby of the trusts created by this Indenture, the Indenture Trustee shall be
entitled to receive, and subject to Sections 6.01 and 6.02, shall be fully protected in relying
upon, an Opinion of Counsel stating that the execution of such supplemental indenture is authorized
or permitted by this Indenture. The Indenture Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Indenture Trustee’s own rights, duties,
liabilities or immunities under this Indenture or otherwise.

     SECTION 9.04. Effect of Supplemental Indenture. Upon the execution of any
supplemental indenture pursuant to the provisions hereof, this Indenture shall be and shall be
deemed to be modified and amended in accordance therewith with respect to the Notes affected
thereby, and the respective rights, limitations of rights, obligations, duties, liabilities and
immunities under this Indenture of the Indenture Trustee, the Issuer and the Holders of the Notes
shall thereafter be determined, exercised and enforced hereunder subject in all respects to such
modifications and amendments, and all the terms and conditions of any such supplemental indenture
shall be and be deemed to be part of the terms and conditions of this Indenture for any and all
purposes.

     SECTION 9.05. Conformity with Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article IX shall conform to the
requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be
qualified under the Trust Indenture Act.

     SECTION 9.06. Reference in Notes to Supplemental Indentures. Notes authenticated and delivered after the execution of any supplemental indenture
pursuant to this Article IX may, and if required by the Indenture Trustee shall, bear a notation in
form approved by the Indenture Trustee as to any matter provided for in such supplemental
indenture. If the Issuer or the Indenture Trustee shall so determine, new Notes so modified as to
conform, in the opinion of the Indenture Trustee and the Issuer, to any such supplemental indenture
may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee
in exchange for Outstanding Notes.

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ARTICLE X

Redemption of Notes

     SECTION 10.01. Redemption. The outstanding Class A Notes, Class B Notes, Class C Notes
and Class D Notes are subject to redemption in whole, but not in part, at the direction of the
Servicer pursuant to Section 9.01(a) of the Sale and Servicing Agreement, on any Payment Date on
which the Servicer exercises its option to purchase the Trust Estate pursuant to said Section
9.01(a), for a purchase price equal to the Redemption Price; provided that the Issuer has available
funds sufficient to pay the Redemption Price. The Servicer or the Issuer shall furnish the Rating
Agencies notice of such redemption. If the outstanding Class A, Class B Notes, Class C Notes and
Class D Notes are to be redeemed pursuant to this Section, the Servicer or the Issuer shall furnish
notice of such election to the Indenture Trustee not later than 20 days prior to the Redemption
Date and the Issuer shall deposit by 9:00 a.m. New York City time on the Redemption Date
with the Indenture Trustee in the Deposit Account the Redemption Price of the Class A Notes, Class
B Notes, Class C Notes and Class D Notes to be redeemed, whereupon all such Class A Notes, Class B
Notes, Class C Notes and Class D Notes shall be due and payable on the Redemption Date upon the
furnishing of a notice complying with Section 10.02 to each Holder of the Notes.

     SECTION 10.02. Form of Redemption Notice. Notice of redemption under Section 10.01
shall be given by the Indenture Trustee by first-class mail, postage prepaid, by facsimile or by
electronic mail and mailed or transmitted not later than 10 days prior to the applicable Redemption
Date to each Holder of Notes, as of the close of business on the Record Date preceding the
applicable Redemption Date, at such Holder’s address or facsimile number appearing in the Note
Register.

     All notices of redemption shall state:

	 	(i)	 	the Redemption Date;
	 
	 	(ii)	 	the Redemption Price; and

          (iii) the place where such Notes are to be surrendered for payment of the Redemption Price
(which shall be the office or agency of the Issuer to be maintained as provided in Section 3.02).

Notice of redemption of the Notes shall be given by the Indenture Trustee in the name and at the
expense of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder
of any Note shall not impair or affect the validity of the redemption of any other Note.

     SECTION 10.03. Notes Payable on Redemption Date. The Notes or portions thereof to be
redeemed shall, following notice of redemption as required by Section 10.02, on the Redemption Date
become due and payable at the Redemption Price and (unless the Issuer shall default in the payment
of the Redemption Price) no interest shall accrue on the Redemption Price for any period after the
date to which accrued interest is calculated for purposes of calculating the Redemption Price.

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ARTICLE XI

Miscellaneous

     SECTION 11.01. Compliance Certificates and Opinions, etc. (a) Upon any application or
request by the Issuer to the Indenture Trustee to take any action under any provision of this
Indenture, the Issuer shall furnish to the Indenture Trustee (i) an Officer’s Certificate stating
that all conditions precedent, if any, provided for in this Indenture relating to the proposed
action have been complied with, (ii) an Opinion of Counsel stating that in the opinion of such
counsel all such conditions precedent, if any, have been complied with and (iii) (if required by
the TIA) an Independent Certificate from a firm of certified public accountants meeting the
applicable requirements of this Section, except that, in the case of any such application or
request as to which the furnishing of such documents is specifically required by any provision of
this Indenture, no additional certificate or opinion need be furnished.

     Every certificate or opinion with respect to compliance with a condition or covenant provided
for in this Indenture shall include:

     (1) a statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein relating thereto;

     (2) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (3) a statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to express an informed opinion as to whether or not such covenant or condition has been
complied with; and

     (4) a statement as to whether, in the opinion of each such signatory, such condition or
covenant has been complied with.

     (b) (i) Prior to the deposit of any Collateral or other property or securities with the
Indenture Trustee that is to be made the basis for the release of any property or securities
subject to the lien of this Indenture, the Issuer shall, in addition to any obligation
imposed in Section 11.01 (a) or elsewhere in this Indenture, furnish to the Indenture Trustee
an Officer’s Certificate certifying or stating the opinion of each person signing such
certificate as to the fair value (within 90 days of such deposit) to the Issuer of the
Collateral or other property or securities to be so deposited.

     (ii) Whenever the Issuer is required to furnish to the Indenture
Trustee an Officer’s Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also
deliver to the Indenture Trustee an Independent Certificate as to the same
matters, if the fair value to the Issuer of the securities to be so deposited
and of all other such securities made the basis of any such

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withdrawal or release since the commencement of the then-current fiscal year of the Issuer, as
set forth in the certificates delivered pursuant to clause (i) above and this clause (ii), is 10%
or more of the Outstanding Amount of the Notes, but such a certificate need not be furnished with
respect to any securities so deposited, if the fair value thereof to the Issuer as set forth in the
related Officer’s Certificate is less than $25,000 or less than one percent of the Outstanding
Amount of the Notes.

     (iii) Whenever any property or securities are to be released from the lien of this
Indenture, the Issuer shall also furnish to the Indenture Trustee an Officer’s Certificate
certifying or stating (A) the opinion of each person signing such certificate as to the fair
value (within 90 days of such release) of the property or securities proposed to be released
and stating that in the opinion of such person the proposed release will not impair the
security under this Indenture in contravention of the provisions hereof, (B) that there are
in place all Hedges required by the provisions of Section 3.21(a) and certifying that those
Hedges have been assigned to the Indenture Trustee in accordance with the provisions of
Section 3.21(b) and (C) that there are no termination payments to the Hedge Counterparty
under the Hedges which are unpaid or outstanding.

     (iv) Whenever the Issuer is required to furnish to the Indenture Trustee an Officer’s
Certificate certifying or stating the opinion of any signer thereof as to the matters
described in clause (iii) above, the Issuer shall also furnish to the Indenture Trustee an
Independent Certificate as to the same matters if the fair value of the property or
securities and of all other property, other than property as contemplated by clause (v)
below or securities released from the lien of this Indenture since the commencement of the
then-current calendar year, as set forth in the certificates required by clause (iii) above
and this clause (iv), equals 10% or more of the Outstanding Amount of the Notes, but
such certificate need not be furnished in the case of any release of property or securities
if the fair value thereof as set forth in the related Officer’s Certificate is less than
$25,000 or less than one percent of the then Outstanding Amount of the Notes.

     (v) Notwithstanding Section 2.10 or any other provision of this Section, the Issuer
may, without compliance with the requirements of the other provisions of this Section, (A)
collect, liquidate, sell or otherwise dispose of Receivables and Financed Vehicles as and to
the extent permitted or required by the Basic Documents, (B) make cash payments out of the
Deposit Account as and to the extent permitted or required by the Basic Documents and (C)
convey to the Seller each Fixed Value Payment and Fixed Value Finance Charges (subject to
Section 5.03(b) of the Sale and Servicing Agreement), so long as the Issuer shall deliver to
the Indenture Trustee every six months, commencing July 15, 2008, an Officer’s Certificate
of the Issuer stating that all the dispositions of Collateral described in clauses (A), (B)
and (C) above that occurred during the preceding six calendar months were in the ordinary
course of the Issuer’s business and that the proceeds thereof were applied in accordance
with the Basic Documents.

          SECTION 11.02. Form of Documents Delivered to Indenture Trustee. In any case where
several matters are required to be certified by, or covered by an opinion of, any specified Person,
it is not necessary that all such matters be certified by, or covered by the opinion of, only one
such Person, or that they be so certified or covered by only one document, but one such

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Person may certify or give an opinion with respect to some matters and one or more other such
Persons as to other matters, and any such Person may certify or give an opinion as to such matters
in one or several documents.

     Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which such officer’s certificate or
opinion is based are erroneous. Any such certificate of an Authorized Officer or Opinion of
Counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or representations by, an officer or officers of the Servicer, the Seller, the Issuer or the
Administrator, stating that the information with respect to such factual matters is in the
possession of the Servicer, the Seller, the Issuer or the Administrator, unless such counsel knows,
or in the exercise of reasonable care should know, that the certificate or opinion or
representations with respect to such matters are erroneous.

     Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

     Whenever in this Indenture, in connection with any application or certificate or report to the
Indenture Trustee, it is provided that the Issuer shall deliver any document as a condition of
the granting of such application, or as evidence of the Issuer’s compliance with any term
hereof, it is intended that the truth and accuracy, at the time of the granting of such application
or at the effective date of such certificate or report (as the case may be), of the facts and
opinions stated in such document shall in such case be conditions precedent to the right of the
Issuer to have such application granted or to the sufficiency of such certificate or report. The
foregoing shall not, however, be construed to affect the Indenture Trustee’s right to rely upon the
truth and accuracy of any statement or opinion contained in any such document as provided in
Article VI.

     SECTION 11.03. Acts of Noteholders. (a) Any request, demand, authorization,
direction, notice, consent, waiver or other action provided by this Indenture to be given or taken
by Noteholders may be embodied in and evidenced by one or more instruments of substantially similar
tenor signed by such Noteholders in person or by agents duly appointed in writing; and except as
herein otherwise expressly provided such action shall become effective when such instrument or
instruments are delivered to the Indenture Trustee and, where it is hereby expressly required, to
the Issuer. Such instrument or instruments (and the action embodied therein and evidenced thereby)
are herein sometimes referred to as the “Act” of the Noteholders signing such instrument or
instruments. Proof of execution of any such instrument or of a writing appointing any such agent
shall be sufficient for any purpose of this Indenture and (subject to Section 6.01) conclusive in
favor of the Indenture Trustee and the Issuer, if made in the manner provided in this Section.

     (b) The fact and date of the execution by any person of any such instrument or writing may be
proved in any manner that the Indenture Trustee deems sufficient.

     (c) The ownership of Notes shall be proved by the Note Register.

63

 

     (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or
in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be
done by the Indenture Trustee or the Issuer in reliance thereon, whether or not notation of such
action is made upon such Note.

     SECTION 11.04. Notices, etc., to Indenture Trustee, Issuer and Rating Agencies. Any
request, demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other
documents provided or permitted by this Indenture shall be in writing and if such request, demand,
authorization, direction, notice, consent, waiver or act of Noteholders is to be made upon, given
or furnished to or filed with:

          (i) the Indenture Trustee by any Noteholder or by the Issuer shall be sufficient for every
purpose hereunder if made, given, furnished or filed in writing to or with the Indenture Trustee at
its Corporate Trust Office, or

          (ii) the Issuer by the Indenture Trustee or by any Noteholder shall be sufficient for every
purpose hereunder if in writing and mailed first-class, postage prepaid to the Issuer addressed to:
DaimlerChrysler Auto Trust 2008-A, in care of BNYM (Delaware), White Clay Center, Route 273,
Newark, Delaware 19711, Attention: DaimlerChrysler Auto Trust 2008-
A, with a copy to The Bank of New York, 101 Barclay Street, 8W, New York, New York 10286,
Attention: Asset Backed Securities Unit, or at any other address previously furnished in writing to
the Indenture Trustee by the Issuer or the Administrator; with a copy to the Administrator
addressed to: DaimlerChrysler Financial Services Americas LLC 27777 Inkster Road, Farmington Hills,
Michigan 48334, Attention: Assistant Secretary, or at any other address previously furnished in
writing to the Indenture Trustee by the Administrator. The Issuer shall promptly transmit any
notice received by it from the Noteholders to the Indenture Trustee.

     Notices required to be given to the Rating Agencies by the Issuer, the Indenture Trustee or
the Owner Trustee shall be in writing, personally delivered, electronically delivered or mailed by
certified mail, return receipt requested, to (i) in the case of Standard & Poor’s, via electronic
delivery to Servicer_reports@sandp.com, and for any information not available in electronic format,
at the following address: Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., to 55 Water Street, New York, New York 10004, Attention of Asset Backed
Surveillance Department; (ii) in the case of Moody’s, at the following address: Moody’s Investors
Service, Inc., 25th Floor, 7 World Trade Center, 250 Greenwich Street, New York, New
York 10007, Attention: ABS/RMBS Monitoring Department; (iii) in the case of Fitch, at the following
address: Fitch, Inc., One State Street Plaza, Attention: Auto ABS Group, New York, New York 10004;
and (iv) in the case of DBRS, via electronic delivery to abs_surveillance@dbrs.com , and for any
information not available in electronic format, at the following address: DBRS, Inc. 55 Broadway,
New York, New York 10006; or as to each of the foregoing, at such other address as shall be
designated by written notice to the other parties.

     SECTION 11.05. Notices to Noteholders; Waiver. Where this Indenture provides for
notice to Noteholders of any event, such notice shall be sufficiently given (unless otherwise
herein expressly provided) if in writing and mailed, first-class, postage prepaid to each
Noteholder affected by such event, at such Holder’s address as it appears on the Note Register,

64

 

not later than the latest date, and not earlier than the earliest date, prescribed for the giving
of such notice. In any case where notice to Noteholders is given by mail, neither the failure to
mail such notice nor any defect in any notice so mailed to any particular Noteholder shall affect
the sufficiency of such notice with respect to other Noteholders, and any notice that is mailed in
the manner herein provided shall conclusively be presumed to have been duly given.

     Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the
Indenture Trustee but such filing shall not be a condition precedent to the validity of any action
taken in reliance upon such a waiver.

     In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Indenture Trustee shall be deemed to
be a sufficient giving of such notice.

     Where this Indenture provides for notice to the Rating Agencies, failure to give such notice
shall not affect any other rights or obligations created hereunder, and shall not under any
circumstance constitute a Default or Event of Default.

     SECTION 11.06. Alternate Payment and Notice Provisions. Notwithstanding any provision
of this Indenture or any of the Notes to the contrary, the Issuer may enter into any agreement with
any Holder of a Note providing for a method of payment, or notice by the Indenture Trustee or any
Paying Agent to such Holder, that is different from the methods provided for in this Indenture for
such payments or notices. The Issuer will furnish to the Indenture Trustee a copy of each such
agreement and the Indenture Trustee will cause payments to be made and notices to be given in
accordance with such agreements.

     SECTION 11.07. Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be included in this
Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control.

     The provisions of TIA §§ 310 through 317 that impose duties on any person (including the
provisions automatically deemed included herein unless expressly excluded by this Indenture) are a
part of and govern this Indenture, whether or not physically contained herein.

     SECTION 11.08. Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

     SECTION 11.09. Successors and Assigns. All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not.
All agreements of the Indenture Trustee in this Indenture shall bind its successors, co-trustees
and agents.

65

 

     SECTION 11.10. Separability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

     SECTION 11.11. Benefits of Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties, and the Noteholders, and any
other Secured Parties hereto and their successors hereunder and any other Person with an ownership
interest in any part of the Trust Estate, any benefit or any legal or equitable right, remedy or
claim under this Indenture.

     SECTION
11.12. Legal Holidays. In any case where the date on which any payment is due shall not be a Business Day, then
(notwithstanding any other provision of the Notes or this Indenture) payment need not be made on
such date, but may be made on the next succeeding Business Day with the same force and effect as if
made on the date on which nominally due, and no interest shall accrue for the period from and after
any such nominal date.

     SECTION 11.13. GOVERNING LAW. THIS INDENTURE, THE RIGHTS AND OBLIGATIONS OF THE
PARTIES UNDER THIS INDENTURE AND ANY CLAIM OR CONTROVERSY DIRECTLY OR INDIRECTLY BASED UPON OR
ARISING OUT OF THIS INDENTURE OR THE TRANSACTIONS CONTEMPLATED BY THIS INDENTURE (WHETHER BASED ON
CONTRACT, TORT OR ANY OTHER THEORY), INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE, SHALL IN ALL RESPECTS BE GOVERNED BY AND INTERPRETED, CONSTRUED AND DETERMINED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO ANY CONFLICTS OF LAW
PROVISION THAT WOULD REQUIRE THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION).

     SECTION 11.14. Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

     SECTION 11.15. Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Indenture Trustee or any
other counsel reasonably acceptable to the Indenture Trustee) to the effect that such recording is
necessary either for the protection of the Noteholders or any other Person secured hereunder or for
the enforcement of any right or remedy granted to the Indenture Trustee under this Indenture.

     SECTION 11.16. Trust Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the
Notes or under this Indenture or any certificate or other writing delivered in connection herewith
or therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual capacity,
(ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner, beneficiary,
agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or the

66

 

Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee in
its individual capacity, except as any such Person may have expressly agreed (it being understood
that the Indenture Trustee and the Owner Trustee have no such obligations in their individual
capacity) and except that any such partner, owner or beneficiary shall be fully liable,
to the extent provided by applicable law, for any unpaid consideration for stock, unpaid capital
contribution or failure to pay any installment or call owing to such entity. For all purposes of
this Indenture, in the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Article
VI, VII and VIII of the Trust Agreement.

     SECTION 11.17. No Petition. The Indenture Trustee, by entering into this Indenture,
and each Noteholder, by accepting a Note, hereby covenant and agree that they will not at any time
institute against the Issuer, the Company or Chrysler Residual Holdco LLC, or join in any
institution against the Issuer, the Company or Chrysler Residual Holdco LLC of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
United States federal or state bankruptcy or similar law in connection with any obligations
relating to the Notes, this Indenture or any of the Basic Documents.

     SECTION 11.18. Inspection. The Issuer agrees that, on reasonable prior notice, it will
permit any representative of the Indenture Trustee, during the Issuer’s normal business hours, to
examine all the books of account, records, reports and other papers of the Issuer, to make copies
and extracts therefrom, to cause such books to be audited by Independent certified public
accountants, and to discuss the Issuer’s affairs, finances and accounts with the Issuer’s officers,
employees and Independent certified public accountants, all at such reasonable times and as often
as may be reasonably requested. The Indenture Trustee shall, and shall cause its representatives
to, hold in confidence all such information except to the extent disclosure may be required by law
(and all reasonable applications for confidential treatment are unavailing) and except to the
extent that the Indenture Trustee may reasonably determine that such disclosure is consistent with
its obligations hereunder.

     SECTION 11.19. Subordination Agreement. Each Noteholder, by accepting a Note, hereby
covenants and agrees that, to the extent it is deemed to have any interest in any assets of the
Seller or the Depositor, or a securitization vehicle (other than the Trust) related to the Seller
or the Depositor, dedicated to other debt obligations of the Seller or the Depositor or debt
obligations of any other securitization vehicle (other than the Trust) related to the Seller or the
Depositor, its interest in those assets is subordinate to claims or rights of such other
debtholders to those other assets. Furthermore, each Noteholder, by accepting a Note, hereby
covenants and agrees that such agreement constitutes a subordination agreement for purposes of
Section 510(a) of the Bankruptcy Code.

     SECTION 11.20. Execution of Financing Statements. Pursuant to any applicable law, the
Issuer is authorized to file or record financing statements and other filing or recording documents
or instruments with respect to the Collateral without the signature of such Issuer in such form and
in such offices as the Indenture Trustee determines appropriate to perfect the security interests
of the Indenture Trustee under this Indenture. The Issuer is authorized to use the collateral
description “all personal property” or “all assets” in any such financing statements. The Issuer
hereby ratifies and authorizes the filing by the Indenture Trustee of any financing

67

 

statement with respect to the Collateral made prior to the date hereof; provided that, at the
request of the Issuer, the Indenture Trustee shall amend any such statement (and any other
financing statement filed by the Indenture Trustee in connection with this Indenture) to exclude
any property that is released from, or otherwise not included in, the Collateral.

68

 

     IN WITNESS WHEREOF, the Issuer and the Indenture Trustee have caused this Indenture to be duly
executed by their respective officers, thereunto duly authorized and duly attested, all as of the
day and year first above written.

	 	 	 	 	 	 	 	 	 
	 	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	By:	 	BNYM (DELAWARE),	 	 
	 	 	 	 	not in its individual capacity but solely as Owner Trustee,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Kristine K. Gullo	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name: Kristine K. Gullo	 	 
	 

	 	 	 	 	 	Title:   Vice President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	DEUTSCHE BANK TRUST COMPANY AMERICAS

not in its individual capacity but solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Jenna Kaufman	 	 
	 

	 	 	 	 	 	 

	 	 
	 

	 	 	 	 	 	Name: Jenna Kaufman	 	 
	 

	 	 	 	 	 	Title:   Director	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	/s/ Louis Bodi	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name: Louis Bodi	 	 
	 

	 	 	 	 	 	Title:   Vice
President	 	 

DCAT 2008-A - Indenture

69

 

SCHEDULE A

SCHEDULE OF RECEIVABLES

[Provided to the Indenture Trustee at Closing]

Schedule A

 

 

EXHIBIT A-1

[FORM OF CLASS A-1 NOTE]

     THIS NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF
1933, AS AMENDED (THE “SECURITIES ACT”), OR ANY STATE SECURITIES LAW AND MAY ONLY BE TRANSFERRED IN
COMPLIANCE WITH SECTION 2.04 OF THE INDENTURE REFERRED TO BELOW. THE HOLDER HEREOF, BY PURCHASING
THIS NOTE, AGREES THAT THIS NOTE, OR ANY INTERESTS OR PARTICIPATION HEREIN, MAY BE REOFFERED,
RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER
APPLICABLE LAWS AND ONLY (1) TO DAIMLERCHRYSLER FINANCIAL SERVICES AMERICAS LLC OR (2) PURSUANT TO
RULE 144A UNDER THE SECURITIES ACT TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE SECURITIES ACT (A “QIB”) PURCHASING
FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN
EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE
144A UNDER THE SECURITIES ACT. EACH NOTE OWNER BY ACCEPTING A BENEFICIAL INTEREST IN THIS NOTE IS
DEEMED TO REPRESENT THAT IT IS EITHER A QIB PURCHASING FOR ITS OWN ACCOUNT OR A QIB PURCHASING FOR
THE ACCOUNT OF ANOTHER QIB.

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

1

 

			
	REGISTERED
	 	$                    

	 		
	No. R-___
	 	CUSIP NO. 233888AA4

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-1 3.15195% ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                                          DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                     and the denominator of which is $350,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-1 Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on March 9, 2009 (the “Class A-1
Final Scheduled Payment Date”). Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that shall be applicable
herein.

     The Issuer will pay interest on this Note at the rate of 3.15195% per annum on each Payment
Date until the principal of this Note is paid or made available for payment, on the principal
amount of this Note outstanding on the preceding Payment Date (after giving effect to all payments
of principal made on such preceding Payment Date), subject to certain limitations contained in the
last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment
Date from and including the most recent Payment Date on which interest has been paid (in the case
of the first Payment Date, from the Closing Date) to but excluding such current Payment Date.
Interest will be computed on the basis of the actual number of days in the Class A-1 Interest
Accrual Period divided by 360. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

2

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	BNYM (DELAWARE), not in its individual capacity but solely as Owner Trustee under the Trust Agreement, 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	Date: February 21, 2008	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Authorized Signatory
	 	 

3

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-1 3.15195% Asset Backed Notes (herein called the “Class A-1 Notes”), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Class A-1 Notes are subject to all terms of the
Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-1 Notes will be payable on each Payment Date and, if the Class A-1
Notes have not been paid in full prior to the Class A-1 Final Scheduled Payment Date, on the Class
A-1 Final Scheduled Payment Date, in an amount described on the face hereof. “Payment Date” means
the eighth day of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the Class A-1 Final Scheduled Payment Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-1 Notes shall be made pro rata to the Class A-1
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
wire transfer to the Person whose name appears as the Registered Holder of this Note (or one or
more Predecessor Notes) on the Note Register as of the close of business on each Record Date,
except that with respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer
in immediately available funds to the account designated by such nominee. Such wire transfer shall
be made to the Person entitled thereto at a depository institution with appropriate facilities
therefor designated by such Person without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date or, if applicable, the Class A-1 Final Scheduled Payment Date, then the Indenture
Trustee, in the name of and on behalf of the Issuer, will notify the Person who was the Registered
Holder hereof as of the Record Date preceding such Payment Date or the Class A-1 Final Scheduled
Payment Date, as applicable, by notice mailed or transmitted by facsimile prior to such Payment
Date or the Class A-1 Final Scheduled Payment Date, as applicable, and the amount then due and
payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

4

 

     The Issuer shall pay interest on overdue installments of interest at the Class A-1 Interest
Rate to the extent lawful.

     As provided in the Indenture and subject to certain limitations set forth therein and on the
face hereof, the transfer of this Note may be registered on the Note Register upon surrender of
this Note for registration of transfer at the office or agency designated by the Issuer pursuant to
the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be

5

 

specified in the Indenture) is registered as the owner hereof for all purposes, whether or not
this Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the
case of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the
Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in
this Note.

6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

      

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

      

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints                             , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 
	
Dated:                                        

	 	 	 	 
	 

	 	 

     Signature:
	 	 

1

 

EXHIBIT A-2a

[FORM OF CLASS A-2a NOTE]

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

	 	 	 	 	 
	REGISTERED
	 	$	                                        	 
	 
	 	 	 	 
	No. R-                    
	 	 CUSIP NO. 233888AB2

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-2a 3.40% ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                      DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                     and the denominator of which is $75,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-2a Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on October 8, 2010 (the “Class A-2a
Final Scheduled Payment Date”). No payments of principal of the Class A-2a Notes shall be made
until the Class A-1 Notes have been paid in full. Payments of principal of the Class A-2a Notes
shall be made on a pari passu basis with the Class A-2b Notes. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

2

 

     The Issuer will pay interest on this Note at the rate of 3.40% per annum on each Payment Date
until the principal of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations contained in the
last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment
Date from and including the eighth day of the month preceding the month of such Payment Date (in
the case of the first Payment Date, from the Closing Date) to and including the seventh day of the
month of such Payment Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Note shall be paid in the manner specified
on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

3

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,
	 
	 	 	 	 
	 

	 	By:
	 	BNYM (DELAWARE), not in its individual capacity

but solely as Owner Trustee under the Trust

Agreement,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: February 21, 2008

	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, not in its individual capacity but

solely as Indenture Trustee,

	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory

4

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its
Class A-2a 3.40% Asset Backed Notes (herein called the “Class A-2a Notes”), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Class A-2a Notes are subject to all terms of the
Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-2a Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the Class A-2a Final Scheduled Payment Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-2a Notes shall be made pro rata to the Class A-2a
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

     The Issuer shall pay interest on overdue installments of interest at the Class A-2a Interest
Rate to the extent lawful.

5

 

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

6

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of the
foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement
against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

      

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

The within Note and all rights thereunder, and hereby irrevocably constitutes and appoints                                    , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 
	Dated:                                        

	 	 	 	 
	 	 	 

     Signature:
	 	 

1

 

EXHIBIT A-2b

[FORM OF CLASS A-2b NOTE]

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

	 	 	 	 	 
	REGISTERED
	 	$	                                        	 
	 
	 	 	 	 
	No. R-                    
	 	CUSIP NO. 233888AC0

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-2b FLOATING RATE ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                                          DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                                         and the denominator of which is $310,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-2b Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on October 8, 2010 (the “Class A-2b
Final Scheduled Payment Date”). No payments of principal of the Class A-2b Notes shall be made
until the Class A-1 Notes have been paid in full. Payments of principal of the Class A-2b Notes
shall be made on a pari passu basis with the Class A-2a Notes. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

     The Issuer will pay interest on this Note at the rate of LIBOR + 0.85% per annum on each
Payment Date until the principal of this Note is paid or made available for payment, on the

2

 

principal amount of this Note outstanding on the preceding Payment Date (after giving effect
to all payments of principal made on such preceding Payment Date), subject to certain limitations
contained in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue
for each Payment Date from and including the eighth day of the month preceding the month of such
Payment Date (in the case of the first Payment Date, from the Closing Date) to and including the
seventh day of the month of such Payment Date. Interest will be computed on the basis of the
actual number of days in each applicable Floating Rate Interest Accrual Period divided by 360.
Such principal of and interest on this Note shall be paid in the manner specified on the reverse
hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

3

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	BNYM (DELAWARE), not in its individual capacity
	 

	 	 	 	but solely as Owner Trustee under the Trust
	 

	 	 	 	Agreement,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: February 21, 2008

	 	DEUTSCHE BANK TRUST COMPANY

	 

	 	AMERICAS, not in its individual capacity but
	 

	 	solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory

4

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its
Class A-2b Floating Rate Asset Backed Notes (herein called the “Class A-2b Notes”), all issued
under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes. The Class A-2b Notes are subject to all terms of
the Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-2b Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the Class A-2b Final Scheduled Payment Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-2b Notes shall be made pro rata to the Class A-2b
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

     The Issuer shall pay interest on overdue installments of interest at the Class A-2b Interest
Rate to the extent lawful.

5

 

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

6

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of the
foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the assets of the
Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

The within Note and all rights thereunder, and hereby irrevocably constitutes and appoints                       , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 
	 
	Dated:                    
                    

 
	 	 

Signature:

	 	 

8

 

EXHIBIT A-3a

[FORM OF CLASS A-3a NOTE]

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

	 	 	 	 	 
	REGISTERED
	 	$	                                        	 
	 
	 	 	 	 
	No. R-                    
	 	CUSIP NO. 233888AD8

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-3a 3.70% ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                                          DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                                         and the denominator of which is $275,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-3a Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on June 8, 2012 (the “Class A-3a
Final Scheduled Payment Date”). No payments of principal of the Class A-3a Notes shall be made
until the Class A-1 Notes and the Class A-2a Notes and the Class A-2b Notes have been paid in full.
Payments of principal of the Class A-3a Notes shall be made on a pari passu basis with the Class
A-3b Notes. Capitalized terms used but not defined herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be applicable herein.

     The Issuer will pay interest on this Note at the rate of 3.70% per annum on each Payment Date
until the principal of this Note is paid or made available for payment, on the principal

1

 

amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain limitations
contained in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue
for each Payment Date from and including the eighth day of the month preceding the month of such
Payment Date (in the case of the first Payment Date, from the Closing Date) to and including the
seventh day of the month of such Payment Date. Interest will be computed on the basis of a 360-day
year of twelve 30-day months. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

2

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,
	 
	 	 	 	 
	 

	 	By:
	 	BNYM (DELAWARE), not in its individual

capacity but solely as Owner Trustee under the Trust

Agreement,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: February 21, 2008

	 	DEUTSCHE BANK TRUST COMPANY

	 

	 	AMERICAS, not in its individual capacity but
	 

	 	solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Authorized Signatory

3

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-3a 3.70% Asset Backed Notes (herein called the “Class A-3a Notes”), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Class A-3a Notes are subject to all terms of the
Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-3a Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the Class A-3a Final Scheduled Payment Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-3a Notes shall be made pro rata to the Class A-3a
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

     The Issuer shall pay interest on overdue installments of interest at the Class A-3a Interest
Rate to the extent lawful.

4

 

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this
Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

5

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in
this Note.

6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints
                                                            , attorney, to transfer said Note on the
books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature:
	 	 

7

 

EXHIBIT A-3b

[FORM OF CLASS A-3b NOTE]

     UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY,
A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE
OR PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

     THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

	 	 	 	 	 
	REGISTERED
	 	$	 	 
	 
	 	 	 	 
	 
	 	 	 	 
	No. R-      
	 	CUSIP NO. 233888AE6

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-3b FLOATING RATE ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                      DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                     and the denominator of which is $190,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-3b Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on June 8, 2012 (the “Class A-3b
Final Scheduled Payment Date”). No payments of principal of the Class A-3b Notes shall be made
until the Class A-1 Notes and the Class A-2a Notes and the Class A-2b Notes have been paid in full.
Payments of principal of the Class A-3b Notes shall be made on a pari passu basis with the Class
A-3a Notes. Capitalized terms used but not defined herein are defined in Article I of the
Indenture, which also contains rules as to construction that shall be applicable herein.

8

 

     The Issuer will pay interest on this Note at the rate of LIBOR + 1.05% per annum on each
Payment Date until the principal of this Note is paid or made available for payment, on the
principal amount of this Note outstanding on the preceding Payment Date (after giving effect to all
payments of principal made on such preceding Payment Date), subject to certain limitations
contained in the last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue
for each Payment Date from and including the eighth day of the month preceding the month of such
Payment Date (in the case of the first Payment Date, from the Closing Date) to and including the
seventh day of the month of such Payment Date. Interest will be computed on the basis of the
actual number of days in each applicable Floating Rate Interest Accrual Period divided by 360.
Such principal of and interest on this Note shall be paid in the manner specified on the reverse
hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

9

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	BNYM (DELAWARE), not in its individual capacity but solely as Owner Trustee under the Trust Agreement,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	Date: February 21, 2008	 	DEUTSCHE BANK TRUST COMPANY AMERICAS, not in its individual capacity but solely as Indenture Trustee,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Authorized Signatory	 	 

10

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its
Class A-3b Floating Rate Asset Backed Notes (herein called the “Class A-3b Notes”), all issued
under the Indenture, to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the Issuer, the
Indenture Trustee and the Holders of the Notes. The Class A-3b Notes are subject to all terms of
the Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-3b Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the Class A-3b Final Scheduled Payment Date. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-3b Notes shall be made pro rata to the Class A-3b
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

     The Issuer shall pay interest on overdue installments of interest at the Class A-3b Interest
Rate to the extent lawful.

11

 

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

12

 

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of the
foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in this Note.

13

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

The within Note and all rights thereunder, and hereby irrevocably constitutes and
appoints                                                              , attorney, to
transfer said Note on the books kept for registration thereof, with full power of substitution in
the premises.

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 	 	 
	 

	 	 

	 	 	 	 

Signature:
	 	 

14

 

EXHIBIT A-4

[FORM OF CLASS A-4 NOTE]

UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

	 	 	 	 	 
	REGISTERED
	 	$                             	 
	 
	 	 	 	 
	No. R-                     
	 	CUSIP NO. 233888AF3

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS A-4 4.48% ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to Cede & Co., or registered assigns, the principal sum of                                          DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                     and the denominator of which is $190,300,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class A-4 Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the earlier of August 8, 2014 (the
“Class A-4 Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant to Section
10.01 of the Indenture. No payments of principal of the Class A-4 Notes shall be made until the
Class A-1 Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3a Notes and the Class
A-3b Notes have been paid in full. Capitalized terms used but not defined herein are defined in
Article I of the Indenture, which also contains rules as to construction that shall be applicable
herein.

1

 

     The Issuer will pay interest on this Note at the rate of 4.48% per annum on each Payment Date
until the principal of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations contained in the
last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment
Date from and including the eighth day of the month preceding the month of such Payment Date (in
the case of the first Payment Date, from the Closing Date) to and including the seventh day of the
month of such Payment Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Note shall be paid in the manner specified
on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

2

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 
	Date:
February 21, 2008
	 	  DAIMLERCHRYSLER AUTO TRUST 2008-A,

	 	 	 	 	 
	 

	 	By:
	 	BNYM (DELAWARE), not in its individual capacity

but solely as Owner Trustee under the Trust

Agreement,
	 
	 	 	 	 
	 

	 	 	By:	 
	 

	 	 	 	Authorized Signatory

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: February 21, 2008

	 	 	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, not in its individual capacity but

solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

3

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its
Class A-4 4.48% Asset Backed Notes (herein called the “Class A-4 Notes”), all issued under the
Indenture, to which Indenture and all indentures supplemental thereto reference is hereby made for
a statement of the respective rights and obligations thereunder of the Issuer, the Indenture
Trustee and the Holders of the Notes. The Class A-4 Notes are subject to all terms of the
Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class A-4 Notes will be payable on each Payment Date in an amount described
on the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not
a Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Class A-4 Final Scheduled Payment Date and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class A-4 Notes shall be made pro rata to the Class A-4
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

4

 

     The Issuer shall pay interest on overdue installments of interest at the Class A-4 Interest
Rate to the extent lawful.

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this

5

 

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the
Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in
this Note.

6

 

ASSIGNMENT

	 
	Social Security or taxpayer I.D. or other identifying number of assignee:

	 

	 

	 

	FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

	 

	 

	(name and address of assignee)

	 

	the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints  
                                                                     
                              , attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 
	 	 	 	 
	 

	 	 	 	 	 	Signature:

7

 

EXHIBIT B

[FORM OF CLASS B NOTE]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS
NOTE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN SECTION 2.04 OF THE INDENTURE
AND SECTION 3.04 OF THE TRUST AGREEMENT (COPIES OF WHICH INDENTURE AND TRUST AGREEMENT ARE
AVAILABLE FROM THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR UPON REQUEST), INCLUDING RECEIPT BY THE
INDENTURE TRUSTEE OR THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN WHICH THE TRANSFEREE MAKES
CERTAIN REPRESENTATIONS.

[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.]1

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

PAYMENTS ON THIS NOTE ARE SUBORDINATE TO THE PAYMENT OF PRINCIPAL OF AND INTEREST ON THE CLASS A
NOTES.

	 	 	 	 	 
	REGISTERED
	 	$                                     
	 
	 	 	 	 
	No. R-                    
	 	 [CUSIP NO.                    ]1

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS B 5.57% ASSET BACKED NOTES

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby

 

			
	1	 	To be inserted if Class B Note is issued as Book-Entry
Note.

1

 

promises to pay to                     , or registered assigns, the principal sum of                    
                     DOLLARS payable on each Payment Date in an amount equal to the result obtained by
multiplying (i) a fraction the numerator of which is $                    and the denominator of which is
$83,100,000 by (ii) the aggregate amount, if any, payable from the Deposit Account in respect of
principal on the Class B Notes pursuant to Section 3.01 of the Indenture dated as of February 1,
2008 (the “Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York
banking corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the
entire unpaid principal amount of this Note shall be due and payable on the earlier of August 8,
2014 (the “Class B Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant to
Section 10.01 of the Indenture. No payments of principal of the Class B Notes shall be made until
the Class A-1 Notes, the Class A-2a Notes, the Class A-2b, the Class A-3a Notes, the Class A-3b and
the Class A-4 Notes have been paid in full. Capitalized terms used but not defined herein are
defined in Article I of the Indenture, which also contains rules as to construction that shall be
applicable herein.

     The Issuer will pay interest on this Note at the rate of 5.57% per annum on each Payment Date
until the principal of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations contained in the
last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment
Date from and including the eighth day of the month preceding the month of such Payment Date (in
the case of the first Payment Date, from the Closing Date) to and including the seventh day of the
month of such Payment Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Note shall be paid in the manner specified
on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

2

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 
	Date: February 21, 2008

	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,
	 
	 	 	 	 
	 

	 	By:
	 	 BNYM (DELAWARE), not in its individual capacity

but solely as Owner Trustee under the Trust

Agreement,
	 
	 	 	 	 
	 

	 	 	By:	
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: February 21, 2008

	 	 	 	DEUTSCHE BANK TRUST COMPANY

AMERICAS, not in its individual capacity but

solely as Indenture Trustee,
	 
	 	 	 	 
	 

	 	By:	 	
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

3

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class B
5.57% Asset Backed Notes (herein called the “Class B Notes”), all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Class B Notes are subject to all terms of the Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class B Notes will be payable on each Payment Date in an amount described on
the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Class B Final Scheduled Payment Date and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class B Notes shall be made pro rata to the Class B
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

4

 

     The Issuer shall pay interest on overdue installments of interest at the Class B Interest Rate
to the extent lawful.

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this

5

 

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be
affected by notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing
contained herein shall be taken to prevent recourse to, and enforcement against, the assets of the
Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or in
this Note.

6

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

(name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints  
                           
               
                
 , attorney, to transfer said Note on the books kept for
registration thereof, with full power of substitution in the premises.

	 	 	 
	Dated:                                        

	 	                                        
	 

	 	Signature:

7

 

EXHIBIT C

[FORM OF CLASS C NOTE]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS
NOTE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN SECTION 2.04 OF THE INDENTURE
AND SECTION 3.04 OF THE TRUST AGREEMENT (COPIES OF WHICH INDENTURE AND TRUST AGREEMENT ARE
AVAILABLE FROM THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR UPON REQUEST), INCLUDING RECEIPT BY THE
INDENTURE TRUSTEE OR THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN WHICH THE TRANSFEREE MAKES
CERTAIN REPRESENTATIONS.

[UNLESS THIS NOTE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A
NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR
PAYMENT, AND ANY NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS
REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE & CO. OR TO SUCH
OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER
USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST
HEREIN.]2

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

PAYMENTS ON THIS NOTE ARE SUBORDINATE TO THE PAYMENT OF PRINCIPAL OF AND INTEREST ON THE CLASS A
NOTES AND THE CLASS B NOTES.

	 	 	 
	REGISTERED

	 	$                                           
	 
	 	 
	No. R-                    

	 	[CUSIP NO.                                        ]2

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS C 5.75% ASSET BACKED NOTES

 

			
	2	 	To be inserted if Class C Note is issued as Book-Entry
Note.

7

 

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to                     , or registered assigns, the principal sum of                  DOLLARS
payable on each Payment Date in an amount equal to the result obtained by multiplying (i) a
fraction the numerator of which is $                     and the denominator of which is $34,000,000 by
(ii) the aggregate amount, if any, payable from the Deposit Account in respect of principal on the
Class C Notes pursuant to Section 3.01 of the Indenture dated as of February 1, 2008 (the
“Indenture”), between the Issuer and Deutsche Bank Trust Company Americas, a New York banking
corporation, as Indenture Trustee (the “Indenture Trustee”); provided, however, that the entire
unpaid principal amount of this Note shall be due and payable on the earlier of August 8, 2014 (the
“Class C Final Scheduled Payment Date”) and the Redemption Date, if any, pursuant to Section 10.01
of the Indenture. No payments of principal of the Class C Notes shall be made until the Class A-1
Notes, the Class A-2a Notes, the Class A-2b Notes, the Class A-3a Notes, the Class A-3b Notes, the
Class A-4 Notes and the Class B Notes have been paid in full. Capitalized terms used but not
defined herein are defined in Article I of the Indenture, which also contains rules as to
construction that shall be applicable herein.

     The Issuer will pay interest on this Note at the rate of 5.75% per annum on each Payment Date
until the principal of this Note is paid or made available for payment, on the principal amount of
this Note outstanding on the preceding Payment Date (after giving effect to all payments of
principal made on such preceding Payment Date), subject to certain limitations contained in the
last sentence of Section 3.01 of the Indenture. Interest on this Note will accrue for each Payment
Date from and including the eighth day of the month preceding the month of such Payment Date (in
the case of the first Payment Date, from the Closing Date) to and including the seventh day of the
month of such Payment Date. Interest will be computed on the basis of a 360-day year of twelve
30-day months. Such principal of and interest on this Note shall be paid in the manner specified
on the reverse hereof.

     The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and private
debts. All payments made by the Issuer with respect to this Note shall be applied first to
interest due and payable on this Note as provided above and then to the unpaid principal of this
Note.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

9

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 	 	 	 	 
	Date: February 21, 2008	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	BNYM (DELAWARE), not in its individual capacity but solely as Owner Trustee under the Trust Agreement,
	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:                                                            	 	 
	 

	 	 	 	      Authorized Signatory	 	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 
	Date: February 21, 2008

	 	DEUTSCHE BANK TRUST COMPANY
	 

	 	AMERICAS, not in its individual capacity but
	 

	 	solely as Indenture Trustee,
	 
	 	 
	 

	 	By:                                                            
	 

	 	      Authorized Signatory

10

 

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class C
5.75% Asset Backed Notes (herein called the “Class C Notes”), all issued under the Indenture, to
which Indenture and all indentures supplemental thereto reference is hereby made for a statement of
the respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the
Holders of the Notes. The Class C Notes are subject to all terms of the Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Principal of the Class C Notes will be payable on each Payment Date in an amount described on
the face hereof. “Payment Date” means the eighth day of each month, or, if any such date is not a
Business Day, the next succeeding Business Day, commencing March 10, 2008.

     As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Class C Final Scheduled Payment Date and the Redemption Date, if any,
pursuant to Section 10.01 of the Indenture. Notwithstanding the foregoing, the entire unpaid
principal amount of the Notes shall be due and payable on the date on which an Event of Default
shall have occurred and be continuing and the Indenture Trustee or the Holders of Notes
representing not less than a majority of the Outstanding Amount of the Controlling Class have
declared the Notes to be immediately due and payable in the manner provided in Section 5.02 of the
Indenture. All principal payments on the Class C Notes shall be made pro rata to the Class C
Noteholders entitled thereto.

     Payments of interest on this Note due and payable on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Registered Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears on the Note Register as
of the applicable Record Date without requiring that this Note be submitted for notation of
payment. Any reduction in the principal amount of this Note (or any one or more Predecessor Notes)
effected by any payments made on any Payment Date shall be binding upon all future Holders of this
Note and of any Note issued upon the registration of transfer hereof or in exchange hereof or in
lieu hereof, whether or not noted hereon. If funds are expected to be available, as provided in
the Indenture, for payment in full of the then remaining unpaid principal amount of this Note on a
Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify
the Person who was the Registered Holder hereof as of the Record Date preceding such Payment Date
by notice mailed or transmitted by facsimile prior to such Payment Date, and the amount then due
and payable shall be payable only upon presentation and surrender of this Note at the Indenture
Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for
such purposes.

11

 

     The Issuer shall pay interest on overdue installments of interest at the Class C Interest Rate
to the extent lawful.

     As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Indenture Trustee duly executed by, the Holder hereof or such Holder’s attorney
duly authorized in writing, and thereupon one or more new Notes of authorized denominations and in
the same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Indenture
Trustee on the Notes or under the Indenture or any certificate or other writing delivered in
connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,
beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner Trustee in
its individual capacity, any holder of a beneficial interest in the Issuer, the Owner Trustee or
the Indenture Trustee or of any successor or assign of the Indenture Trustee or the Owner Trustee
in its individual capacity, except as any such Person may have expressly agreed and except that any
such partner, owner or beneficiary shall be fully liable, to the extent provided by applicable law,
for any unpaid consideration for stock, unpaid capital contribution or failure to pay any
installment or call owing to such entity.

     Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note, covenants and agrees by accepting the benefits of the Indenture that
such Noteholder or Note Owner will not at any time institute against the Seller or the Issuer, or
join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     The Issuer has entered into the Indenture and this Note is issued with the intention that, for
federal, state and local income, single business and franchise tax purposes, the Senior Notes will
qualify as indebtedness secured by the Trust Estate. Each Noteholder, by acceptance of a Note (and
each Note Owner by acceptance of a beneficial interest in a Note), agrees to treat the Senior Notes
for federal, state and local income, single business and franchise tax purposes as indebtedness.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this

12

 

Note be overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place and rate, and in the coin or currency
herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of principal of or interest on this Note or performance of, or omission to perform, any of the
covenants, obligations or indemnifications contained in the Indenture. The Holder of this Note by
its acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case
of an Event of Default under the Indenture, the Holder shall have no claim against any of
the foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the assets of the
Issuer for any and all liabilities, obligations and undertakings contained in the Indenture or
in this Note.

13

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee:

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

     (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints ____________, attorney, to transfer said Note on the books kept for registration thereof, with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 

	 	 

Signature:
	 	 

14

 

EXHIBIT D

[FORM OF CLASS D NOTE]

THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES
ACT”), OR ANY STATE SECURITIES LAWS, AND MAY NOT BE OFFERED, SOLD, PLEDGED OR OTHERWISE TRANSFERRED
IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM. IN ADDITION, THE TRANSFER OF THIS
NOTE IS SUBJECT TO CERTAIN RESTRICTIONS AND CONDITIONS SET FORTH IN SECTION 2.04 OF THE INDENTURE
AND SECTION 3.04 OF THE TRUST AGREEMENT (COPIES OF WHICH INDENTURE AND TRUST AGREEMENT ARE
AVAILABLE FROM THE INDENTURE TRUSTEE, THE OWNER TRUSTEE OR UPON REQUEST), INCLUDING RECEIPT BY THE
INDENTURE TRUSTEE OR THE OWNER TRUSTEE OF AN INVESTMENT LETTER IN WHICH THE TRANSFEREE MAKES
CERTAIN REPRESENTATIONS.

	 		
	No. R-1
	 	$___

DAIMLERCHRYSLER AUTO TRUST 2008-A

CLASS D NOTE

     DaimlerChrysler Auto Trust 2008-A, a statutory trust organized and existing under the laws of
the State of Delaware (herein referred to as the “Issuer”), for value received, hereby promises to
pay to ___, or registered assigns, upon presentation and surrender of this Note (except as
otherwise permitted by the Indenture and the Sale and Servicing Agreement referred to below), the
Class D Payment Amount on the earlier of February 8, 2015 (the “Class D Final Scheduled Payment
Date”) and the Redemption Date, if any, pursuant to Section 10.01 of the Indenture. No payment of
any Class D Payment Amount shall be made until the Class A-1 Notes, the Class A-2a Notes, the Class
A-2b Notes, the Class A-3a Notes, the Class A-3b Notes, the Class A-4 Notes, the Class B Notes and
the Class C Notes have been paid in full. Capitalized terms used but not defined herein are
defined in Article I of the Indenture, which also contains rules as to construction that shall be
applicable herein.

     This Note will not bear a stated rate of interest but will be entitled to receive the Class D
Payment Amounts from time to time if and to the extent funds are available for such purpose in
accordance with the Indenture and the Sale and Servicing Agreement. The Class D Payment Amounts
shall be paid in the manner specified on the reverse hereof.

     The Class D Payment Amounts are payable in such coin or currency of the United States of
America as at the time of payment is legal tender for payment of public and private debts.

     Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

     Unless the certificate of authentication hereon has been executed by the Indenture Trustee
whose name appears below by manual signature, this Note shall not be entitled to any benefit under
the Indenture, or be valid or obligatory for any purpose.

1

 

     IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer, as of the date set forth below.

	 	 	 
	Date: February 21, 2008

	 	DAIMLERCHRYSLER AUTO TRUST 2008-A,
	 
	 

	 	By: BNYM (DELAWARE), not in its individual capacity but

solely as Owner Trustee under the Trust Agreement,

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 
	Date: February 21, 2008

	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,

not in its individual capacity but solely as Indenture Trustee,

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Signatory 	 
	 	 	 	 

2

 

	 	 	 	 	 

[REVERSE OF CLASS D NOTE]

     This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class D
Asset Backed Notes (herein called the “Class D Notes”), all issued under the Indenture, to which
Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights and obligations thereunder of the Issuer, the Indenture Trustee and the Holders
of the Notes. The Class D Notes are subject to all terms of the Indenture.

     Subject to the subordination provisions of the Indenture, the Notes are and will be equally
and ratably secured by the collateral pledged as security therefor as provided in the Indenture.

     Any Class D Payment Amount will be payable on the related Payment Date. “Payment Date” means
the eighth day of each month, or, if any such date is not a Business Day, the next succeeding
Business Day, commencing March 10, 2008.

     Any Class D Payment Amount not previously paid shall be due and payable on the earlier of the
Class D Final Scheduled Payment Date and the Redemption Date, if any, pursuant to Section 10.01 of
the Indenture. Notwithstanding the foregoing, the Class D Payment Amounts shall be due and payable
on the date on which an Event of Default shall have occurred and be continuing and the Indenture
Trustee or the Holders of Notes representing not less than a majority of the Outstanding Amount of
the Controlling Class have declared the Notes to be immediately due and payable in the manner
provided in Section 5.02 of the Indenture. All principal payments on the Class D Notes shall be
made pro rata to the Holders of Class D Notes entitled thereto.

     Payments of the Class D Payment Amounts due and payable on each Payment Date shall be made by
wire transfer to the Person whose name appears as the Registered Holder of this Note (or one or
more Predecessor Notes) on the Note Register as of the close of business on each Record Date.

     As provided in the Indenture and subject to certain limitations set forth therein (including,
for the avoidance of doubt, Section 2.04 of the Indenture), the transfer of this Note may be
registered on the Note Register upon surrender of this Note for registration of transfer at the
office or agency designated by the Issuer pursuant to the Indenture, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly
executed by, the Holder hereof or such Holder’s attorney duly authorized in writing, and thereupon
one or more new Notes of authorized denominations and in the same aggregate principal amount will
be issued to the designated transferee or transferees. No service charge will be charged for any
registration of transfer or exchange of this Note, but the transferor may be required to pay a sum
sufficient to cover any tax or other governmental charge that may be imposed in connection with any
such registration of transfer or exchange.

     Each Noteholder, by acceptance of a Note, covenants and agrees that no recourse may be taken,
directly or indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the
Indenture Trustee on the Notes or under the Indenture or any certificate or other writing delivered
in connection therewith, against (i) the Indenture Trustee or the Owner Trustee in its individual
capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner, owner,

3

 

beneficiary, agent, officer, director or employee of the Indenture Trustee or the Owner
Trustee in its individual capacity, any holder of a beneficial interest in the Issuer, the Owner
Trustee or the Indenture Trustee or of any successor or assign of the Indenture Trustee or the
Owner Trustee in its individual capacity, except as any such Person may have expressly agreed and
except that any such partner, owner or beneficiary shall be fully liable, to the extent provided by
applicable law, for any unpaid consideration for stock, unpaid capital contribution or failure to
pay any installment or call owing to such entity.

     Each Noteholder, by acceptance of a Note, covenants and agrees by accepting the benefits of
the Indenture that such Noteholder will not at any time institute against the Seller or the Issuer,
or join in any institution against the Seller or the Issuer of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings under any United States federal or state
bankruptcy or similar law in connection with any obligations relating to the Notes, the Indenture
or the Basic Documents.

     It is the intent of the Issuer, the Depositor, the Company, the Servicer and the Noteholder
that, for purposes of federal income, state and local income and single business tax and any other
income taxes, the Issuer will be treated as a security arrangement for the issuance of debt by the
sole Noteholder. The Company, by acceptance of the Notes, agrees to treat, and to take no action
inconsistent with the above treatment for so long as the Company is the sole Owner.

     Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in
whose name this Note (as of the day of determination or as of such other date as may be specified
in the Indenture) is registered as the owner hereof for all purposes, whether or not this Note be
overdue, and none of the Issuer, the Indenture Trustee or any such agent shall be affected by
notice to the contrary.

     The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Holders of Notes
representing a majority of the Outstanding Amount of all Notes at the time Outstanding. The
Indenture also contains provisions permitting the Holders of Notes representing specified
percentages of the Outstanding Amount of the Controlling Class, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one or more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Indenture Trustee to amend or waive certain
terms and conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

     The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

4

 

     The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Indenture Trustee and the Holders of Notes under the
Indenture.

     The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

     This Note and the Indenture shall be construed in accordance with the laws of the State of New
York, without reference to its conflict of law provisions, and the obligations, rights and remedies
of the parties hereunder and thereunder shall be determined in accordance with such laws.

     No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the Class
D Payment Amounts at the times, place and rate, and in the coin or currency herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the Basic
Documents, none of BNYM (Delaware), in its individual capacity, Deutsche Bank Trust Company
Americas, in its individual capacity, any owner of a beneficial interest in the Issuer, or any of
their respective partners, beneficiaries, agents, officers, directors, employees or successors or
assigns shall be personally liable for, nor shall recourse be had to any of them for, the payment
of the Class D Payment Amounts or performance of, or omission to perform, any of the covenants,
obligations or indemnifications contained in the Indenture. The Holder of this Note by its
acceptance hereof agrees that, except as expressly provided in the Basic Documents, in the case of
an Event of Default under the Indenture, the Holder shall have no claim against any of the
foregoing for any deficiency, loss or claim therefrom; provided, however, that nothing contained
herein shall be taken to prevent recourse to, and enforcement against, the assets of the Issuer for
any and all liabilities, obligations and undertakings contained in the Indenture or in this Note.

     The Class D Notes may not be acquired by (a) an employee benefit plan (as defined in Section
3(3) of ERISA) that is subject to the provisions of Title I of ERISA, (b) a plan described in
Section 4975(e)(1) of the Code or (c) any entity whose underlying assets include plan assets by
reason of a plan’s investment in the entity or which uses plan assets to acquire Class D Notes
(each, a “Benefit Plan”). By accepting and holding this Class D Note, the Holder hereof shall be
deemed to have represented and warranted that it is not a Benefit Plan.

5

 

ASSIGNMENT

     FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY OR

OTHER IDENTIFYING NUMBER OF ASSIGNEE

      

(Please print or type name and address, including postal zip code, of assignee)

the within Class D Note, and all rights thereunder, and hereby irrevocably constitutes and appoints ____________, attorney, to transfer said Class D Note on the books
of the registrar, with full power of substitution in the premises.

	 	 	 	 	 	 	 
	Dated:
	 	 	 	 	 	 
	 

	 	 

	 	 

Signature:
	 	 

6

 

EXHIBIT E

[FORM OF NOTE DEPOSITORY AGREEMENT]

The Depository Trust Company

A subsidiary of The Depository Trust & Clearing Corporation

ISSUER LETTER OF REPRESENTATIONS

[To be Completed by Issuer and Co-Issuer(s), if applicable]

[Name of Issuer and Co-Issuer(s), if applicable]

[Security Designation, including series designation if applicable]

[CUSIP Number of the Securities]

[Date]

[For Municipal Issues:

     Underwriting Department—Eligibility; 25th Floor]

[For Corporate Issues:

     General Counsel’s Office; 22nd Floor]

The Depository Trust Company

55 Water Street

New York, NY 10041-0099

Ladies and Gentlemen:

     This letter sets forth our understanding with respect to the Securities represented by the
CUSIP number referenced above (the “Securities”). The Issuer requests that The Depository Trust
Company (“DTC”) accept the Securities as eligible for deposit at DTC. The DTC Participant,
                    (manager, underwriter or placement agent) will distribute the securities
through DTC.

     To induce DTC to accept the Securities as eligible for deposit at DTC, and to act in
accordance with DTC’s Rules with respect to the Securities, Issuer represents to DTC that Issuer
will comply with the requirements applicable to it stated in DTC’s Operational Arrangements (found
at www.dtcc.com and www.dtc.org), as they may be amended from time to time.

1

 

Note:

Schedule A contains
statements that DTC
believes accurately
describe DTC, the method of
effecting book-entry
transfers of securities
distributed through DTC,
and certain related
matters.

Received and Accepted:

THE DEPOSITORY TRUST COMPANY

By:                                                             

	 	 	 	 	 	 	 
	 	 	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Issuer)

	 
	 	 	 	 	 	 
	 

	 	 	 	By:	 	 
	 

	 	 	 	 	 	 
	 	 	 	 	(Authorized Officer’s Signature)

	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Print Name)

	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Street Address)

	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(City)                      (State)                       (Country)                      (Zip Code)

	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(Phone Number)

	 
	 	 	 	 	 	 
	 	 	 	 	 
	 	 	 	 	(E-mail Address)

2

 

SCHEDULE A

(To Issuer Letter of Representations)

SAMPLE OFFERING DOCUMENT LANGUAGE

DESCRIBING BOOK-ENTRY-ONLY ISSUANCE

(Prepared by DTC—bracketed material may be applicable only to certain issues)

     1. The Depository Trust Company (“DTC”), New York, NY, will act as securities depository for
the securities (the “Securities”). The Securities will be issued as fully-registered securities
registered in the name of Cede & Co. (DTC’s partnership nominee) or such other name as may be
requested by the authorized representative of DTC. One fully-registered Security certificate will
be issued for [each issue of] the Securities, [each] in the aggregate principal amount of such
issue, and will be deposited with DTC. [If, however, the aggregate principal amount of [any] issue
exceeds $500 million, one certificate will be issued with respect to each $500 million of principal
amount and an additional certificate will be issued with respect to any remaining principal amount
of such issue.]

     2. DTC, the world’s largest depository, is a limited-purpose trust company organized under the
New York Banking Law, a “banking organization” within the meaning of the New York Banking Law, a
member of the Federal Reserve System, a “clearing corporation” within the meaning of the New York
Uniform Commercial Code, and a “clearing agency” registered pursuant to the provisions of Section
17A of the Securities Exchange Act of 1934. DTC holds and provides asset servicing for over 2.2
million issues of U.S. and non-U.S. equity, corporate and municipal debt issues, and money market
instrument from over 100 countries that DTC’s participants (“Direct Participants”) deposit with
DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and other
securities transactions in deposited securities through electronic computerized book-entry
transfers and pledges between Direct Participants’ accounts. This eliminates the need for physical
movement of securities certificates. Direct Participants include both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, clearing corporations, and certain other
organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing Corporation
(“DTCC”). DTCC, in turn, is owned by a number of Direct Participants of DTC and Members of the
National Securities Clearing Corporation, Fixed Income Clearing Corporation and Emerging Markets
Clearing Corporation (NSCC, FICC, and EMCC, also subsidiaries of DTCC), as well as by the New York
Stock Exchange, Inc., the American Stock Exchange LLC, and the National Association of Securities
Dealers, Inc. Access to the DTC system is also available to others such as both U.S. and non-U.S.
securities brokers and dealers, banks, trust companies, and clearing corporations that clear
through or maintain a custodial relationship with a Direct Participant, either directly or
indirectly (“Indirect Participants”). DTC has Standard & Poor’s highest rating: AAA. The DTC
Rules applicable to its Participants are on file with the Securities and Exchange Commission. More
information about DTC can be found at www.dtcc.com and www.dtc.org.

     3. Purchases of Securities under the DTC system must be made by or through Direct
Participants, which will receive a credit for the Securities on DTC’s records. The ownership
interest of each actual purchaser of each Security (“Beneficial Owner”) is in turn to be recorded
on the Direct and Indirect Participants’ records. Beneficial Owners will not receive written

3

 

confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive
written confirmations providing details of the transaction, as well as periodic statements of their
holdings, from the Direct or Indirect Participant through which the Beneficial Owner entered into
the transaction. Transfers of ownership interests in the Securities are to be accomplished by
entries made on the books of Direct and Indirect Participants acting on behalf of Beneficial
Owners. Beneficial Owners will not receive certificates representing their ownership interests in
Securities, except in the event that use of the book-entry system for the Securities is
discontinued.

     4. To facilitate subsequent transfers, all Securities deposited by Direct Participants with
DTC are registered in the name of DTC’s partnership nominee, Cede & Co. or such other name as may
be requested by an authorized representative of DTC. The deposit of Securities with DTC and their
registration in the name of Cede & Co. or such other nominee do not effect any change in beneficial
ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities; DTC’s records
reflect only the identity of the Direct Participants to whose accounts such Securities are
credited, which may or may not be the Beneficial Owners. The Direct and Indirect Participants will
remain responsible for keeping account of their holdings on behalf of their customers.

     5. Conveyance of notices and other communications by DTC to Direct Participants, by Direct
Participants to Indirect Participants, and by Direct Participants and Indirect Participants to
Beneficial Owners will be governed by arrangements among them, subject to any statutory or
regulatory requirements as may be in effect from time to time. [Beneficial Owners of Securities
may wish to take certain steps to augment transmission to them of notices of significant events
with respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to
the security documents. For example, Beneficial Owners of Securities may wish to ascertain that
the nominee holding the Securities for their benefit has agreed to obtain and transmit notices to
Beneficial Owners. In the alternative, Beneficial Owners may wish to provide their names and
addresses to the registrar and request that copies of the notices be provided directly to them.]

     [6. Redemption notices shall be sent to DTC. If less than all of the Securities within an
issue are being redeemed, DTC’s practice is to determine by lot the amount of the interest of each
Direct Participant in such issue to be redeemed.]

     7. Neither DTC nor Cede & Co. (nor such other DTC nominee) will consent or vote with respect
to the Securities unless authorized by a Direct Participant in accordance with DTC’s Procedures.
Under its usual procedures, DTC mails an Omnibus Proxy to Issuer as soon as possible after the
record date. The Omnibus Proxy assigns Cede & Co.’s consenting or voting rights to those Direct
Participants to whose accounts the Securities are credited on the record date (identified in a
listing attached to the Omnibus Proxy).

     8. Redemption proceeds, distributions, and dividend payments on the Securities will be made to
Cede & Co., or such other nominee as may be requested by an authorized representative of DTC.
DTC’s practice is to credit Direct Participants’ accounts, upon DTC’s receipt of funds and
corresponding detail information from Issuer or Agent on payable date in accordance with their
respective holdings shown on DTC’s records. Payments by Participants to

4

 

Beneficial Owners will be governed by standing instructions and customary practices, as is the
case with securities held for the accounts of customers in bearer form or registered in “street
name,” and will be the responsibility of such Participant and not of DTC, Agent, or Issuer, subject
to any statutory or regulatory requirements as may be in effect from time to time. Payment of
redemption proceeds, distributions, and dividend payments to Cede & Co. (or such other nominee as
may be requested by an authorized representative of DTC) is the responsibility of Issuer or Agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and
disbursement of such payments to the Beneficial Owners will be the responsibility of Direct and
Indirect Participants.

     [9. A Beneficial Owner shall give notice to elect to have its Securities purchased or
tendered, through its Participant, to [Tender/Remarketing] Agent, and shall effect delivery of such
Securities by causing the Direct Participant to transfer the Participant’s interest in the
Securities, on DTC’s records, to [Tender/Remarketing] Agent. The requirement for physical delivery
of Securities in connection with an optional tender or a mandatory purchase will be deemed
satisfied when the ownership rights in the Securities are transferred by Direct Participants on
DTC’s records and followed by a book-entry credit of tendered Securities to [Tender/Remarketing]
Agent’s DTC account.]

     10. DTC may discontinue providing its services as securities depository with respect to the
Securities at any time by giving reasonable notice to Issuer or Agent. Under such circumstances,
in the event that a successor securities depository is not obtained, Security certificates are
required to be printed and delivered.

     11. Issuer may decide to discontinue use of the system of book-entry-only transfers through
DTC (or a successor securities depository). In that event, Security certificates will be printed
and delivered to DTC.

     12. The information in this section concerning DTC and DTC’s book-entry system has been
obtained from sources that Issuer believes to be reliable, but Issuer takes no responsibility for
the accuracy thereof.

5

 

SCHEDULE B

(to Issuer Letter of Representations)

 

(Describe Issue)

6

 

EXHIBIT F

FORM OF HEDGE

1

 

EXHIBIT G

FORM OF HEDGE ASSIGNMENT

     HEDGE ASSIGNMENT, dated as of ___, 200___between DAIMLERCHRYSLER AUTO TRUST (the
“Issuer”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, as Indenture Trustee (the “Indenture Trustee”).

     WHEREAS, pursuant to the Indenture, dated as of February 1, 2008 (as amended, supplemented or
otherwise modified from time to time, the “Indenture”), among the Issuer and the Indenture Trustee,
the Issuer has agreed to assign one or more interest rate swaps or one or more interest rate caps
from time to time to the Indenture Trustee for the benefit of the Secured Parties;

     WHEREAS, the Issuer has entered into an interest rate [swap] [cap] agreement satisfying the
requirements of Section 3.21(a) of the Indenture with ___(the “Counterparty”), an Eligible
Counterparty (the “Hedge”); and

     WHEREAS, pursuant to Section 3.21(b) of the Indenture, the Issuer has agreed to deliver this
Hedge Assignment to the Indenture Trustee for the benefit of the Secured Parties;

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

     1. Definitions. Capitalized terms used in this Hedge Assignment shall have the
respective meanings assigned to such terms in the Indenture).

     2. Hedge Assignment. The Issuer hereby assigns, conveys, transfers, delivers and sets
over unto the Indenture Trustee for the benefit of the Secured Parties, and grants to the Indenture
Trustee a security interest in all right, title and interest of the Issuer in and to the Hedge
including, without limitation, all moneys due and to become due to the Issuer thereunder or in
connection therewith, whether payable as contractual payments thereunder, termination payments,
damages for the breach thereof or otherwise, and all rights, remedies, powers, privileges and
claims of the Issuer under or with respect to the Hedge (whether arising pursuant to the terms of
the Hedge or otherwise available to the Issuer at law or in equity), including, without limitation,
the right of the Issuer to enforce the obligations of the Counterparty thereunder and to give or
withhold any and all consents, requests, notices, directions, approvals, extensions or waivers
under or with respect to the Hedge to the same extent as the Issuer could but for the assignment
and security interest granted hereby.

     3. Governing Law. THIS HEDGE ASSIGNMENT SHALL BE GOVERNED AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK.

1

 

     IN WITNESS WHEREOF, the parties hereto have caused this Hedge Assignment to be executed as of
the date first above written by their respective duly authorized officers.

	 	 	 	 	 
	 	 	DAIMLERCHRYSLER AUTO TRUST, as Issuer
	 
	 	 	 	 
	 

	 	By:	 	BNYM (DELAWARE), not in its individual
	 

	 	 	 	capacity but solely as Owner Trustee on
	 

	 	 	 	behalf of the Issuer
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Name:
	 

	 	 	 	Title:

	 	 	 	 	 
	ACKNOWLEDGED:	 	 
	 
	 	 	 	 
	[NAME OF COUNTERPARTY]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

2

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