Document:

POOLING AND SERVICING AGREEMENT

 EXHIBIT 4.3 
  

 
  

POOLING AND SERVICING AGREEMENT 

BETWEEN 
 CAPITAL AUTO
RECEIVABLES LLC 
 AND 

ALLY FINANCIAL INC. 

DATED AS OF OCTOBER 21, 2015 
  

 
  

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	 ARTICLE I DEFINITIONS
	  	 	1	  
			
	 SECTION 1.01
	 	 Definitions
	  	 	1	  
	 SECTION 1.02
	 	 Owner of a Receivable
	  	 	2	  
		
	 ARTICLE II PURCHASE AND SALE OF RECEIVABLES
	  	 	2	  
			
	 SECTION 2.01
	 	 Purchase and Sale of Receivables
	  	 	2	  
	 SECTION 2.02
	 	 Receivables Purchase Price
	  	 	4	  
	 SECTION 2.03
	 	 The Closings
	  	 	5	  
	 SECTION 2.04
	 	 Custody of Receivable Files
	  	 	5	  
		
	 ARTICLE III ADMINISTRATION AND SERVICING OF RECEIVABLES
	  	 	6	  
			
	 SECTION 3.01
	 	 Duties of the Servicer
	  	 	6	  
	 SECTION 3.02
	 	 Collection of Receivable Payments
	  	 	7	  
	 SECTION 3.03
	 	 Realization Upon Liquidating Receivables
	  	 	7	  
	 SECTION 3.04
	 	 Maintenance of Insurance Policies
	  	 	8	  
	 SECTION 3.05
	 	 Maintenance of Security Interests in Vehicles
	  	 	8	  
	 SECTION 3.06
	 	 Covenants, Representations and Warranties of the Servicer
	  	 	8	  
	 SECTION 3.07
	 	 Purchase of Receivables Upon Breach of Covenant
	  	 	10	  
	 SECTION 3.08
	 	 Basic Servicing Fee; Payment of Certain Expenses by Servicer
	  	 	10	  
	 SECTION 3.09
	 	 Servicer’s Accounting
	  	 	10	  
	 SECTION 3.10
	 	 Application of Collections
	  	 	11	  
		
	 ARTICLE IV REPRESENTATIONS AND WARRANTIES
	  	 	11	  
			
	 SECTION 4.01
	 	 Representations and Warranties as to the Receivables
	  	 	11	  
	 SECTION 4.02
	 	 Additional Representations and Warranties of the Seller
	  	 	15	  
	 SECTION 4.03
	 	 Representations and Warranties of CARI
	  	 	16	  
		
	 ARTICLE V ADDITIONAL AGREEMENTS
	  	 	17	  
			
	 SECTION 5.01
	 	 Conflicts With Further Transfer and Servicing Agreements
	  	 	17	  
	 SECTION 5.02
	 	 Protection of Title
	  	 	17	  
	 SECTION 5.03
	 	 Other Liens or Interests
	  	 	18	  
	 SECTION 5.04
	 	 Repurchase Events
	  	 	18	  
	 SECTION 5.05
	 	 Indemnification
	  	 	18	  
	 SECTION 5.06
	 	 Further Assignments
	  	 	19	  
	 SECTION 5.07
	 	 Pre-Closing Collections
	  	 	19	  
		
	 ARTICLE VI CONDITIONS
	  	 	19	  
			
	 SECTION 6.01
	 	 Conditions to Obligation of CARI
	  	 	19	  
	 SECTION 6.02
	 	 Conditions to Obligation of the Seller
	  	 	20	  
		
	 ARTICLE VII MISCELLANEOUS PROVISIONS
	  	 	21	  
			
	 SECTION 7.01
	 	 Amendment
	  	 	21	  
	 SECTION 7.02
	 	 Survival
	  	 	21	  
	 SECTION 7.03
	 	 Notices
	  	 	21	  
	 SECTION 7.04
	 	 Governing Law
	  	 	21	  
	 SECTION 7.05
	 	 Waivers
	  	 	21	  
	 SECTION 7.06
	 	 Costs and Expenses
	  	 	21	  
	 SECTION 7.07
	 	 Confidential Information
	  	 	21	  
	 SECTION 7.08
	 	 Headings
	  	 	22	  

  
 i 

							
	 SECTION 7.09
	 	 Counterparts
	  	 	22	  
	 SECTION 7.10
	 	 No Petition Covenant
	  	 	22	  
	 SECTION 7.11
	 	 Limitations on Rights of Others
	  	 	22	  
	 SECTION 7.12
	 	 Merger and Consolidation of the Seller, the Servicer or CARI
	  	 	22	  
	 SECTION 7.13
	 	 Assignment
	  	 	23	  

  

			
	 EXHIBIT A
	  	 Form of First Step Initial Receivables Assignment

		
	 EXHIBIT B
	  	 Form of First Step Additional Receivables Assignment

		
	 SCHEDULE A
	  	 Schedule of Receivables

		
	 APPENDIX A
	  	 Definitions, Rules of Construction and Notices

		
	 APPENDIX B
	  	 Additional Representations and Warranties

  
 ii 

 THIS POOLING AND SERVICING AGREEMENT, dated as of October 21, 2015, between CAPITAL AUTO
RECEIVABLES LLC, a Delaware limited liability company (“CARI”), and ALLY FINANCIAL INC., a Delaware corporation (“Ally Financial,” also herein referred to as the “Seller” in its capacity as seller
of the Receivables and as the “Servicer” in its capacity as servicer of the Receivables). 
 WHEREAS, CARI desires to
purchase on the date hereof and from time to time hereafter portfolios of automobile and light truck retail instalment sale contracts, direct purchase money loans and related rights owned by the Seller; 

WHEREAS, the Seller is willing to sell on the date hereof and from time to time hereafter such contracts and related rights to CARI; 

WHEREAS, CARI may wish to sell or otherwise transfer on the date hereof and from time to time hereafter such contracts and related rights, or
interests therein, to a trust, corporation, partnership or other entity (any such entity being the “Issuing Entity”); 

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

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

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

ARTICLE I 
 DEFINITIONS

 SECTION 1.01 Definitions. Certain capitalized terms used in this Agreement are defined in and shall have the respective
meanings assigned to them in Part I of Appendix A to this Agreement. All references herein to “the Agreement” or “this Agreement” are to this Pooling and Servicing Agreement as it may be amended, supplemented or modified
from time to 

 
time, and all references herein to Articles and Sections are to Articles or Sections of this Agreement unless otherwise specified. The rules of construction set forth in Part II of such
Appendix A shall be applicable to this Agreement. 
 SECTION 1.02 Owner of a Receivable. For purposes of this Agreement, the
“Owner” of a Receivable shall mean CARI until the sale, transfer, assignment or other conveyance of such Receivable by CARI pursuant to the terms of the Further Transfer and Servicing Agreements, and thereafter shall mean the
Issuing Entity; provided, however, that the Seller, the Servicer or CARI, as applicable, shall be the “Owner” of any Receivable from and after the time that such Person shall acquire such Receivable, whether pursuant
to Section 3.07 or 5.04 of this Agreement, any provision of the Further Transfer and Servicing Agreements or otherwise. 

ARTICLE II 
 PURCHASE AND
SALE OF RECEIVABLES 
 SECTION 2.01 Purchase and Sale of Receivables. 

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

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

(v) all right, title and interest of the Seller in, to and under the First Step Initial Receivables Assignment; 

(vi) the right to purchase Additional Receivables during the Revolving Period at a price equal to the Aggregate Additional Receivables
Principal Balance on each applicable Distribution Date; and 

  
 2 

 (vii) all present and future claims, demands, causes and choses in action in respect of any or
all of the foregoing described in clauses (i) through (vi) above and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the
conversion of any or all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
investment property, payment intangibles, general intangibles, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or
are included in the proceeds of any of the foregoing. 
 The property described in clauses (i) through (vii) above
is referred to herein collectively as the “Initial Purchased Property.” 
 (b) Additional Purchases. On each
Subsequent Closing Date, subject to the satisfaction of the conditions specified in Article VI and the First Step Additional Receivables Assignment (and, in any event, immediately prior to consummation of the related transactions contemplated
by the Further Transfer and Servicing Agreements, if any), the Seller shall sell, transfer, assign and otherwise convey to CARI, without recourse: 

(i) all right, title and interest of the Seller in, to and under the Additional Receivables listed on the Schedule of Additional Receivables
for such Subsequent Closing Date and all monies received thereon on and after the related Subsequent Cutoff Date, exclusive of any amounts allocable to the premium for physical damage collateral protection insurance required by the Seller or the
Servicer covering any related Financed Vehicle; 
 (ii) the interest of the Seller in the security interests in the Financed Vehicles
granted by Obligors pursuant to the Additional Receivables and, to the extent permitted by law, any accessions thereto; 
 (iii) the
interest of the Seller in any proceeds from claims on any physical damage, credit life, credit disability or other insurance policies covering the related Financed Vehicles or Obligors; 

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

(v) all right, title and interest of the Seller in, to and under the related First Step Additional Receivables Assignment; and 

(vi) all present and future claims, demands, causes and choses in action in respect of any or all the foregoing described in clauses
(i) through (v) above and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or all of the foregoing, voluntary
or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property, payment intangibles, general
intangibles, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the
foregoing. 

  
 3 

 The property described in clauses (i) through (vi) above is referred to
herein collectively as the “Additional Purchased Property.” The Initial Purchased Property and the Additional Purchased Property are referred to herein collectively as the “Purchased Property.” 

(c) It is the intention of the Seller and CARI that the sale, transfer, assignment and other conveyances of the Receivables contemplated by
this Agreement and the First Step Receivables Assignment shall constitute a sale of the Receivables from the Seller to CARI and the beneficial interest in and title to the Receivables shall not be part of the Seller’s estate in the event of the
filing of a bankruptcy petition by or against the Seller under any bankruptcy law. 
 (d) Each sale, transfer, assignment and other
conveyances of Receivables contemplated by this Agreement and the related First Step Receivables Assignment do not constitute and are not intended to result in the creation of or an assumption by CARI of any obligation of the Seller, the Servicer or
any other Person to the Obligors, Dealers, insurers or any other Person in connection with the Receivables, any Dealer Agreements, any insurance policies or any other agreement or instrument relating to any of them. 

SECTION 2.02 Receivables Purchase Price. 

(a) Initial Purchase. In consideration for the Initial Purchased Property, CARI shall, on the Initial Closing Date, pay to the Seller an
amount equal to the Initial Aggregate Receivables Principal Balance in respect of the Initial Receivables and the Seller shall execute and deliver to CARI an assignment in the form attached hereto as Exhibit A (the “First Step Initial
Receivables Assignment”). The Initial Aggregate Receivables Principal Balance is equal to $804,999,778.68. A portion of the Initial Aggregate Receivables Principal Balance shall be paid to the Seller in immediately available funds and the
balance of such purchase price shall be paid through one or both of (a) an increase in the amount owing from CARI to Seller under the Intercompany Advance Agreement (as a result of an advance made thereunder from Seller to CARI) and (b) an
increase in Seller’s capital account in CARI (as a result of a deemed capital contribution from the Seller to CARI). The amount advanced under the Intercompany Advance Agreement and the amount of the deemed capital contribution shall be duly
recorded by the Seller and CARI. 
 (b) Additional Receivables. In consideration for the Additional Purchased Property, CARI shall,
on each related Subsequent Closing Date, pay to the Seller an amount equal to the Aggregate Additional Receivables Principal Balance in respect of the Additional Receivables sold on such date and the Seller shall execute and deliver to CARI an
assignment in the form attached hereto as Exhibit A (the “First Step Additional Receivables Assignment”). A portion of the Aggregate Additional Receivables Principal Balance shall be paid to the Seller in immediately
available funds and the balance of such purchase shall be paid through one or both of (a) an increase in the amount owing from CARI to Seller under the Intercompany Advance Agreement (as a result of an advance made thereunder from Seller to
CARI) and (b) an increase in Seller’s capital account in CARI (as a result of a deemed capital contribution from Seller to CARI). The amount advanced under the Intercompany Advance Agreement and the amount of 

  
 4 

 
the deemed capital contribution shall be duly recorded by the Seller and CARI. The First Step Initial Receivables Assignment and each First Step Additional Receivables Assignment are collectively
referred to herein as the “First Step Receivables Assignments.”) 
 SECTION 2.03 The Closings. 

(a) Initial Purchase. The sale and purchase of the Initial Receivables shall take place at the offices of Kirkland & Ellis LLP,
300 North LaSalle Street, Chicago, Illinois 60654, on the Initial Closing Date at a time mutually agreeable to the Seller and CARI, and will occur simultaneously with the closing of transactions contemplated by the Further Transfer and Servicing
Agreements. 
 (b) Additional Purchases. The sale and purchase of the Additional Receivables shall take place on the Subsequent
Closing Dates at such locations and at such times as are mutually agreeable to the Seller and CARI, and will occur simultaneously with the closing of transactions contemplated by any Further Transfer and Servicing Agreements. 

SECTION 2.04 Custody of Receivable Files. In connection with the sale, transfer and assignment of the Receivables to CARI pursuant to
this Agreement and the First Step Receivables Assignments, CARI, simultaneously with the execution and delivery of this Agreement, shall enter into the Custodian Agreement with the Custodian, pursuant to which CARI shall revocably appoint the
Custodian, and the Custodian shall accept such appointment, to act as the agent of CARI as Custodian of the following documents or instruments which shall be constructively delivered to CARI with respect to each Receivable: 

(a) the fully executed original of the instalment sale contract or direct purchase money loan, as applicable, for such Receivable; 

(b) documents evidencing or related to any Insurance Policy; 

(c) the original credit application of each Obligor, fully executed by each such Obligor on the Seller’s customary form, or on a form
approved by the Seller, for such application; 
 (d) where permitted by law, the original certificate of title (when received) and otherwise
such documents, if any, that the Seller keeps on file in accordance with its customary procedures indicating that the Financed Vehicle is owned by the Obligor and subject to the interest of the Seller as first lienholder or secured party; and 

(e) any and all other documents that the Seller keeps on file in accordance with its customary procedures relating to the individual
Receivable, Obligor or Financed Vehicle. 

  
 5 

 ARTICLE III 

ADMINISTRATION AND SERVICING OF RECEIVABLES 

SECTION 3.01 Duties of the Servicer. 

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

(b) The Servicer’s duties shall include collection and posting of all payments, responding to inquiries of Obligors, investigating
delinquencies, sending billing statements to Obligors, policing the collateral, including remarketing repossessed and returned Financed Vehicles, accounting for collections and furnishing monthly and annual statements to the Owner of any Receivables
with respect to distributions, generating federal income tax information and performing the other duties specified herein. Subject to the provisions of Section 3.02, the Servicer shall follow its customary standards, policies and
procedures and shall have full power and authority, acting alone, to do any and all things in connection with such managing, servicing, administration and collection that it may deem necessary or desirable. 

(c) Without limiting the generality of the foregoing, the Servicer is hereby authorized and empowered by the Owner of the Receivables,
pursuant to this Section 3.01, to execute and deliver, on behalf of all Interested Parties, or any of them, any and all instruments of satisfaction or cancellation, or of partial or full release or discharge, and all other comparable
instruments, with respect to the Receivables and the Financed Vehicles (including proceeds). The Servicer is hereby authorized to (i) commence, in its own name or in the name of the Owner of such Receivable a legal proceeding, whether through
judicial process or (with respect to repossession of a Financed Vehicle) non-judicial process, (ii) participate in a voluntary or involuntary liquidation proceeding to enforce a Liquidating Receivable or Receivable as contemplated by
Section 3.03, (iii) enforce all obligations of the Seller, the Servicer, CARI or the Issuing Entity under this Agreement and under the Further Transfer and Servicing Agreements or (iv) commence or participate in a legal
proceeding (including a bankruptcy case) relating to or involving a Receivable or a Liquidating Receivable. If the Servicer commences or participates in such a legal proceeding in its own name, the Servicer is hereby authorized and empowered by the
Owner of the Receivables pursuant to this Section 3.01 to obtain possession of the related Financed Vehicle and immediately and without further action on the part of the Owner or the Servicer, the Owner of such Receivable shall thereupon
automatically assign in trust such Receivable and the security interest in the related Financed Vehicle to the Servicer for the benefit of the Interested Parties immediately prior to such legal or liquidation proceeding for purposes of commencing or
participating in any such proceeding as a party or claimant. Upon such automatic assignment, the Servicer will be, and will have all the rights and duties of, a secured party under the UCC and other applicable law with respect to such Receivable and
the related Financed Vehicle. At the Servicer’s request from time to time, the Owner of a Receivable assigned under this Section 3.01 shall provide the Servicer with evidence of the assignment in trust for the benefit of the
Interested Parties as may be reasonably necessary for the Servicer to take any of the actions set forth in the following sentence. 

  
 6 

 (d) The Servicer is hereby authorized and empowered by the Owner of a Receivable to execute and
deliver in the Servicer’s name any notices, demands, claims, complaints, responses, affidavits or other documents or instruments in connection with any such proceeding. Any Owner of Receivables shall furnish the Servicer with any powers of
attorney and other documents and take any other steps which the Servicer may deem necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties under this Agreement and the Further Transfer and Servicing
Agreements. Except to the extent required by the preceding two sentences, the authority and rights granted to the Servicer in this Section 3.01 shall be nonexclusive and shall not be construed to be in derogation of the retention by the
Owner of a Receivable of equivalent authority and rights. 
 SECTION 3.02 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same shall become due, and shall follow such collection practices, policies and procedures as it follows with respect to
comparable motor vehicle related receivables that it services for itself or others in connection therewith. Except as provided in Section 3.06(a)(iii), the Servicer is hereby authorized to grant extensions, rebates or adjustments on a
Receivable without the prior consent of the Owner of such Receivable. The Servicer is authorized in its discretion to waive any prepayment charge, late payment charge or any other fees that may be collected in the ordinary course of servicing such
Receivable. 
 SECTION 3.03 Realization Upon Liquidating Receivables. The Servicer shall use reasonable efforts, consistent with its
customary practices, policies and procedures, to repossess or otherwise comparably convert the ownership or gain control of any Financed Vehicle that it has reasonably determined should be repossessed or otherwise converted following a default under
the Receivable secured by the Financed Vehicle. The Servicer is authorized to follow such customary practices, policies and procedures as it follows with respect to comparable motor vehicle related receivables that it services for itself or others,
which customary practices, policies and procedures may include reasonable efforts to realize upon any recourse to Dealers, selling the related Financed Vehicle at public or private sale and other actions by the Servicer in order to realize upon such
a Receivable. The Servicer is hereby authorized to exercise its discretion consistent with its customary practices, policies and procedures and the terms of the Basic Documents, in servicing Liquidating Receivables so as to maximize the net
collection of those Liquidating Receivables, including the discretion to choose to sell or not to sell any of the Liquidating Receivables itself on behalf of the Depositor or any other Owner. The Servicer shall not be liable for any such exercise of
its discretion made in good faith and in accordance with such servicing procedures. The foregoing is subject to the provision that, in any case in which the Financed Vehicle shall have suffered damage, the Servicer shall not expend funds in
connection with any repair or towards the repossession of such Financed Vehicle unless it shall determine in its discretion that such repair or repossession shall increase the proceeds of liquidation of the related Receivable by an amount greater
than the amount of such expenses. The Servicer shall be entitled to receive Liquidation Expenses with respect to each Liquidating Receivable at such time as the Receivable becomes a Liquidating Receivable (or as may otherwise be provided in the
Further Transfer and Servicing Agreements). 

  
 7 

 SECTION 3.04 Maintenance of Insurance Policies. The Servicer shall, in accordance with its
customary practices, policies and procedures, require that each Obligor shall have obtained physical damage insurance covering the Financed Vehicle as of the execution of the related Receivable. The Servicer shall, in accordance with its customary
practices, policies and procedures, track such physical damage insurance with respect to each Receivable. 
 SECTION 3.05 Maintenance of
Security Interests in Vehicles. The Servicer shall, in accordance with its customary practices, policies and procedures and at its own expense, take such steps as are necessary to maintain perfection of the security interest created by each
Receivable in the related Financed Vehicle. The Owner of each Receivable hereby authorizes the Servicer to re-perfect such security interest on behalf of such Owner, as necessary because of the relocation of a Financed Vehicle, or for any other
reason. 
 SECTION 3.06 Covenants, Representations and Warranties of the Servicer. As of the Initial Closing Date with respect to the
Initial Receivables and as of each Subsequent Closing Date with respect to the Additional Receivables purchased on each such Subsequent Closing Date, the Servicer hereby makes the following representations, warranties and covenants on which CARI
relies in accepting the Receivables hereunder and pursuant to the related First Step Receivables Assignment, and on which the Issuing Entity shall rely in accepting such Receivables and executing and delivering the Securities under the Further
Transfer and Servicing Agreements. 
 (a) The Servicer covenants that from and after the closing hereunder: 

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

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

(b) Upon the execution of this Agreement and the Further Transfer and Servicing Agreements, the Servicer represents and warrants to the
Issuing Entity and CARI that as of the Initial Closing Date with respect to the Initial Receivables and as of each Subsequent Closing Date with respect to the Additional Receivables purchased on each such Subsequent Closing Date: 

(i) Organization and Good Standing. The Servicer has been duly formed and is validly existing and in good standing under the laws of
its State of incorporation, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted; 

  
 8 

 (ii) Due Qualification. The Servicer is duly qualified to do business as a foreign entity
in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business (including the servicing of the Receivables) requires or shall require such
qualification; 
 (iii) Power and Authority. The Servicer has the power and authority to execute and deliver this Agreement and the
Further Transfer and Servicing Agreements and to carry out the terms of such agreements; the Servicer has the power, authority and legal right to service the Receivables as provided herein and in the Further Transfer and Servicing Agreements and the
Servicer’s execution, delivery and performance of this Agreement and the Further Transfer and Servicing Agreements have been duly authorized by the Servicer by all necessary corporate action; 

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

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

  
 9 

 SECTION 3.07 Purchase of Receivables Upon Breach of Covenant. Upon discovery by any of the
Seller, the Servicer, CARI or any party under the Further Transfer and Servicing Agreements of a breach of any of the covenants set forth in Sections 3.05 and 3.06(a), the party discovering such breach shall give
prompt written notice thereof to the others. As of the last day of the second Monthly Period following its discovering or receiving notice of such breach (or, at the Servicer’s election, the last day of the first Monthly Period following such
discovery or notice), the Servicer shall, unless it shall have cured such breach in all material respects, purchase from the Owner thereof any Receivable materially and adversely affected by such breach as determined by such Owner and, on the
related Distribution Date, the Servicer shall pay the Administrative Purchase Payment. It is understood and agreed that the obligation of the Servicer to purchase any Receivable with respect to which such a breach has occurred and is continuing
shall, if such obligation is fulfilled, constitute the sole remedy against the Servicer for such breach available to CARI or any Interested Party. 

SECTION 3.08 Basic Servicing Fee; Payment of Certain Expenses by Servicer. The Servicer is entitled to receive the Basic Servicing Fee
out of collections in respect of the Receivables and other available funds, as and to the extent set forth herein and in the Further Transfer and Servicing Agreements. The Servicer shall also be entitled to Investment Earnings as, and to the extent,
set forth in the Further Transfer and Servicing Agreements. Subject to any limitations on the Servicer’s liability under the Further Transfer and Servicing Agreements, the Servicer shall be required to pay all expenses incurred by it in
connection with its activities under this Agreement and under the Further Transfer and Servicing Agreements (including fees and disbursements of the Issuing Entity, any trustees and independent accountants, taxes imposed on the Servicer, expenses
incurred in connection with distributions and reports to holders of Securities and all other fees and expenses not expressly stated under this Agreement or the Further Transfer and Servicing Agreements to be for the account of the holders of
Securities). 
 SECTION 3.09 Servicer’s Accounting. On each Determination Date under a Further Transfer and Servicing Agreement,
the Servicer shall deliver to each of the trustees and other applicable parties under the Further Transfer and Servicing Agreements and to CARI and the Rating Agencies a Servicer’s Accounting with respect to the immediately preceding Monthly
Period executed by any Authorized Officer of the Servicer containing all information necessary to each such party for making any distributions required by the Further Transfer and Servicing Agreements, and all information necessary to each such
party for sending any statements required under the Further Transfer and Servicing Agreements. Receivables to be purchased by the Servicer under Sections 3.07 or 5.04 or to be repurchased by CARI, the Servicer or the Seller under
the Further Transfer and Servicing Agreements as of the last day of any Monthly Period shall be identified by Receivable number (as set forth in the Schedule of Receivables). With respect to any Receivables for which CARI is the Owner, the Servicer
shall deliver to CARI such accountings relating to such Receivables and the actions of the Servicer with respect thereto as CARI may reasonably request. 

  
 10 

 SECTION 3.10 Application of Collections. For the purposes of this Agreement and the
Further Transfer and Servicing Agreements, no later than each Distribution Date all collections for the related Monthly Period shall be applied by the Servicer as follows: 

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

(b) With respect to a Simple Interest Receivable that is also an Administrative Receivable or Warranty Receivable, payments by or on behalf of
the Obligor shall be applied in the same manner as set forth in Section 3.10(a). A Warranty Payment or an Administrative Purchase Payment, as applicable, shall be applied to principal and interest on such Receivable. 

ARTICLE IV 

REPRESENTATIONS AND WARRANTIES 

SECTION 4.01 Representations and Warranties as to the Receivables. The Seller makes the following representations and warranties as to
the Receivables, on which CARI relies in accepting the Receivables. Such representations and warranties speak as of the Initial Closing Date with respect to the Initial Receivables, and as of each Subsequent Closing Date with respect to the
Additional Receivables purchased on each such Subsequent Closing Date, and shall survive the sale, transfer and assignment of the Receivables to CARI and the subsequent assignment and transfer pursuant to the Further Transfer and Servicing
Agreements: 
 (a) Characteristics of Receivables. 

(i) General. Each Receivable: 

(1) is secured by a Financed Vehicle, was originated in the United States by the Seller or one of its subsidiaries or a Dealer for the retail
sale of a Financed Vehicle in the ordinary course of business, was fully and properly executed by the parties thereto, if not originated by the Seller, was purchased by the Seller from one of its subsidiaries or from such Dealer under an existing
Dealer Agreement, and was validly assigned by such subsidiary or such Dealer to the Seller in accordance with its terms, 
 (2) has created
or shall create a valid, binding and enforceable first priority security interest in favor of the Seller in the Financed Vehicle, which security interest is assignable by the Seller to CARI, 

(3) contains customary and enforceable provisions such as to render the rights and remedies of the holder thereof adequate for realization
against the collateral of the benefits of the security, 
 (4) is a Simple Interest Receivable, 

(5) provides for level monthly payments which may vary from one another by no more than $5, which shall amortize the Amount Financed by
maturity and shall yield interest at the Annual Percentage Rate, 

  
 11 

 (6) has an original term of not less than twelve (12) months and not greater than
eighty-four (84) months and a remaining term of not less than three (3) months, and 
 (7) with respect to which at least one
monthly payment has been made. 
 (ii) Initial Receivables. In addition to the characteristics set forth in
Section 4.01(a)(i) above, each Initial Receivable (1) has a first scheduled payment due date on or after July 16, 2009, (2) was originated on or after June 4, 2009, (3) as of the Initial Cutoff Date, was not
considered past due (that is, no payments due on that Initial Receivable in excess of $25 were more than thirty (30) days delinquent), and was not a Liquidating Receivable, and (4) has an Annual Percentage Rate not greater than 26.00%.

 (iii) Additional Receivables. In addition to the characteristics set forth in Section 4.01(a)(i) above, each
Additional Receivable as of the related Subsequent Cutoff Date, was not considered past due, that is, the payments due on that Additional Receivable in excess of $25 were not more than thirty (30) days delinquent, and such Additional Receivable
was not a Liquidating Receivable. 
 (iv) Cumulative Receivables. Following the addition of all Additional Receivables on each
Subsequent Cutoff Date: 
 (1) the sum of the Amount Financed of each Cumulative Receivable as of such date that had an original term:
(a) of 60 months or less, measured as of its date of origination, is at least 22.5% of the Aggregate Amount Financed of the Cumulative Receivables as of such date; (b) of between 73 months and 75 months, measured as of its date of
origination, is not greater than 10.0% of the Aggregate Amount Financed of the Cumulative Receivables as of such date; and (c) in excess of 75 months, measured as of its date of origination, is not greater than 2.0% of the Aggregate Amount
Financed of the Cumulative Receivables as of such date; 
 (2) the sum of the Amount Financed of each Cumulative Receivable as of such date
that was secured by used Financed Vehicles, measured as of the Applicable Cutoff Date for each such Cumulative Receivable, is not greater than 40.0% of the Aggregate Amount Financed of the Cumulative Receivables as of such dates; 

(3) the Weighted Average FICO Score of the Cumulative Receivables, measured as of the Applicable Cutoff Date, is 630 or greater; 

(4) the Weighted Average Loan-to-Value of the Cumulative Receivables, measured as of the Applicable Cutoff Date, is 110 or less; 

(5) the Weighted Average Rate of the Cumulative Receivables, measured as of the Applicable Cutoff Date, is at least 7.8%; 

(6) the sum of the Amount Financed of each Cumulative Receivable with no FICO score or related to a business obligor, measured as of the
Applicable Cutoff Date, is not greater than 10.0% of the Aggregate Amount Financed of the Cumulative Receivables; and 

  
 12 

 (7) the sum of the Amount Financed of each Cumulative Receivable with a FICO score less than
580, measured as of the Applicable Cutoff Date, is not greater than 12.5% of the Aggregate Amount Financed of the Cumulative Receivables. 

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

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

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

  
 13 

 (g) Receivables In Force. Each such Receivable has not been satisfied, subordinated or
rescinded, and the Financed Vehicle securing each such Receivable has not been released from the lien of the related Receivable in whole or in part. 

(h) No Waiver. Since the Initial Cutoff Date or any Subsequent Cutoff Date, as applicable, no provision of any such Receivable has been
waived, altered or modified in any respect. 
 (i) No Defenses. No right of rescission, setoff, counterclaim or defense has been
asserted or threatened with respect to any such Receivable. 
 (j) No Liens. To the best of the Seller’s knowledge:
(1) there are no liens or claims that have been filed for work, labor or materials affecting any Financed Vehicle securing any Receivable that are or may be liens prior to, or equal or coordinate with, the security interest in the Financed
Vehicle granted by such Receivable; (2) no contribution failure has occurred with respect to any Benefit Plan which is sufficient to give rise to a lien under Section 303 (k) of ERISA with respect to any Receivable; and (3) no
tax lien has been filed and no claim related thereto is being asserted with respect to any Receivable. 
 (k) Insurance. The Obligor
under each such Receivable is required to maintain a physical damage insurance policy of the type that the Seller requires in accordance with its customary underwriting standards for the purchase of motor vehicle related receivables. 

(l) Good Title. Each such Receivable has not been sold, transferred, assigned or pledged by the Seller to any Person other than CARI;
immediately prior to the conveyance of each such Receivable pursuant to this Agreement and the First Step Receivables Assignments, the Seller had good and marketable title thereto, free of any Lien; and, upon execution and delivery of this Agreement
by the Seller, CARI shall have all of the right, title and interest of the Seller in and to each such Receivable, the unpaid indebtedness evidenced thereby and the collateral security therefor, free of any Lien. 

(m) Lawful Assignment. Each such Receivable was not originated in, or is not subject to the laws of, any jurisdiction the laws of which
would make unlawful the sale, transfer and assignment of each such Receivable under this Agreement, the Trust Sale and Servicing Agreement or the Indenture, as applicable. 

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

  
 14 

 (q) No Amendment. Each such Receivable has not been amended or otherwise modified such
that the number of originally scheduled due dates has been increased or such that the Amount Financed has been increased. 
 SECTION 4.02
Additional Representations and Warranties of the Seller. The Seller hereby represents and warrants to CARI and the Servicer as of the Initial Closing Date with respect to the Initial Receivables and as of each Subsequent Closing Date with
respect to the Additional Receivables purchased on each such Subsequent Closing Date that: 
 (a) Organization and Good Standing. The
Seller has been duly formed and is validly existing as an entity in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such
business is presently conducted; 
 (b) Due Qualification. The Seller is duly qualified to do business as a foreign entity in good
standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires or shall require such qualification; 

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

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

(e) No Violation. The consummation of the transactions contemplated by this Agreement and the related First Step Receivables Assignment
and the fulfillment of the terms of this Agreement and the related First Step Receivables Assignment shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or bylaws (or similar organizational documents) of the Seller, or any indenture, agreement, mortgage, deed of trust or other instrument to which the Seller is a party or by which it is bound, or result in
the creation or 

  
 15 

 
imposition of any Lien upon any of its properties pursuant to the terms of any such indenture, agreement, mortgage, deed of trust or other instrument, other than this Agreement and the First Step
Receivables Assignments or violate any law or, to the best of the Seller’s knowledge, any order, rule or regulation applicable to the Seller of any court or of any federal or State regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Seller or any of its properties; 
 (f) No Proceedings. To the Seller’s knowledge,
there are no proceedings or investigations pending, or threatened, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality having jurisdiction over the Seller or its properties (A) asserting
the invalidity of this Agreement and the related First Step Receivables Assignment, (B) seeking to prevent the consummation of any of the transactions contemplated by this Agreement and the related First Step Receivables Assignment, or
(C) seeking any determination or ruling that might materially and adversely affect the performance by the Seller of its obligations under, or the validity or enforceability of, this Agreement and the First Step Receivables Assignments; and 

(g) No Insolvency. With respect to the Additional Receivables as of the related Subsequent Closing Date, (i) the Seller was not
and will not become insolvent as a result of the transfer of such Additional Receivables, (ii) the Seller did not intend to or believe that it would incur debts that would be beyond its ability to pay as such debts matured, (iii) the
Seller did not transfer such Additional Receivables with the actual intent to hinder, delay or defraud any Person and (iv) the assets of the Seller did not constitute unreasonably small capital to carry out its business as conducted. 

SECTION 4.03 Representations and Warranties of CARI. CARI hereby represents and warrants to the Seller and the Servicer as of the
Initial Closing Date and each Subsequent Closing Date: 
 (a) Organization and Good Standing. CARI has been duly formed and is
validly existing as an entity in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are presently owned and such business is presently conducted, and
had at all relevant times, and now has, power, authority and legal right to acquire and own the Receivables; 
 (b) Due
Qualification. CARI is duly qualified to do business as a foreign entity in good standing, and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of property or the conduct of its business
requires such qualification; 
 (c) Power and Authority. CARI has the power and authority to execute and deliver this Agreement and
the First Step Receivables Assignments and to carry out its terms and the execution, delivery and performance of this Agreement and the First Step Receivables Assignments have been duly authorized by CARI by all necessary limited liability company
action; 

  
 16 

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

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

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

SECTION 5.02 Protection of Title. 

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

(b) Name Change. The Seller shall not change its State of incorporation or its name, identity or entity structure in any manner that
would, could or might make any financing statement or continuation statement filed by the Seller, CARI or CARI’s assigns in accordance with Section 5.02(a) seriously misleading within the meaning of the UCC, unless it shall give
CARI written notice thereof within ten (10) days of such change. 

  
 17 

 (c) Executive Office; Maintenance of Offices. The Seller shall give CARI written notice
within ten (10) days of any relocation of its principal executive office if, as a result of such relocation, the applicable provisions of the UCC would require the filing of any amendment of any previously filed financing or continuation
statement or of any new financing statement. The Seller shall at all times maintain each office from which it originates Receivables and its principal executive office within the United States of America. 

(d) New Debtor. In the event that the Seller shall change the jurisdiction in which it is formed or otherwise enter into any
transaction which would result in a “new debtor” (as defined in the UCC) succeeding to the obligations of the Seller hereunder, the Seller shall comply fully with the obligations of Section 5.02(a). 

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

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

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

  
 18 

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

CONDITIONS 
 SECTION 6.01
Conditions to Obligation of CARI. The obligation of CARI to purchase the Receivables hereunder and pursuant to the First Step Receivables Assignments is subject to the satisfaction of the following conditions: 

(a) Representations and Warranties True. The representations and warranties of each of the Seller and the Servicer hereunder shall be
true and correct at the time of the Initial Closing Date and each Subsequent Closing Date with the same effect as if then made, and each of the Seller and Servicer shall have performed all obligations to be performed by it hereunder on or prior to
the Initial Closing Date and each Subsequent Closing Date. 
 (b) No Repurchase Event. No Repurchase Event shall have occurred on or
prior to the Initial Closing Date and each Subsequent Closing Date. 
 (c) Computer Files Marked. The Seller shall have or shall have
caused to have, at its own expense, on or prior to the Initial Closing Date and each Subsequent Closing Date, indicated in its computer files created in connection with the Receivables that the Receivables have been sold to CARI pursuant to this
Agreement and the First Step Receivables Assignments and deliver to CARI the Schedule of Initial Receivables or Schedule of Additional Receivables, as applicable, certified by an officer of the Seller to be true, correct and complete. 

(d) Documents to be Delivered By the Seller. 

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

  
 19 

 (ii) Evidence of UCC Filing. On or prior to the Initial Closing Date, the Seller shall
record and file, at its own expense, a UCC-1 financing statement in each jurisdiction in which required by applicable law, authorized by and naming the Seller as seller or debtor, naming CARI as purchaser or secured party, naming the Receivables and
the other Purchased Property as collateral, meeting the requirements of the laws of each such jurisdiction and in such manner as is necessary to perfect the sale, transfer, assignment and conveyance of such Receivables to CARI. The Seller shall
deliver a file-stamped copy, or other evidence satisfactory to CARI of such filing, to CARI on or prior to the Initial Closing Date. 

(iii) Other Documents. On the Initial Closing Date and on each Subsequent Closing Date the Seller shall provide such other documents
as CARI may reasonably request. 
 (e) Other Transactions. The transactions contemplated by the Further Transfer and Servicing
Agreements shall be consummated to the extent that such transactions are intended to be substantially contemporaneous with the transactions hereunder. 

(f) Conditions to the Purchase of Additional Receivables. In addition to the conditions set forth in this Section 6.01, the
obligation of CARI to purchase Additional Receivables hereunder and pursuant to the related First Step Additional Receivables Assignment is subject to the satisfaction of the following conditions: 

(i) No Adverse Selection Procedures. No selection procedures believed by the Seller to be adverse to the interests of CARI, the
Issuing Entity, the Noteholders or the Certificateholders shall have been utilized in selecting the Additional Receivables. 
 (ii) No
Material Tax Consequences. The addition of the Additional Receivables will not result in a material adverse tax consequence to CARI, the Issuing Entity, the Noteholders or the Certificateholders. 

(iii) Conditions Satisfied. All the conditions to the transfer of the Additional Receivables from CARI to the Issuing Entity specified
in Section 2.07 of the Trust Sale and Servicing Agreement shall have been satisfied. 
 SECTION 6.02 Conditions to Obligation
of the Seller. The obligation of the Seller to sell the Receivables to CARI hereunder or pursuant to the related First Step Receivables Assignment is subject to the satisfaction of the following conditions: 

(a) Representations and Warranties True. The representations and warranties of CARI hereunder shall be true and correct as of the
Initial Closing Date with respect to the Initial Receivables and as of the Subsequent Closing Date with respect to the Additional Receivables with the same effect as if then made, and CARI shall have performed all obligations to be performed by it
hereunder or pursuant to the First Step Receivables Assignments on or prior to the closing hereunder. 

  
 20 

 (b) Receivables Purchase Price. On the Initial Closing Date, CARI shall pay to the Seller
that portion of the Initial Aggregate Receivables Principal Balance and on each Subsequent Closing Date, CARI shall pay the Seller that portion of the Aggregate Additional Receivables Principal Balance, in each case, as provided in
Section 2.02. 
 ARTICLE VII 

MISCELLANEOUS PROVISIONS 

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

SECTION 7.02 Survival. The representations and warranties of the Seller and the Servicer set forth in Articles IV and V
of this Agreement and of Servicer set forth in Section 3.06 of this Agreement shall remain in full force and effect and shall survive the Initial Closing Date and each Subsequent Closing Date under Section 2.03 hereof and the
closing under the Further Transfer and Servicing Agreements. 
 SECTION 7.03 Notices. All demands, notices and communications upon or
to the Seller, the Servicer or CARI under this Agreement shall be delivered as specified in Part III of Appendix A to this Agreement. 

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

SECTION 7.05 Waivers. No failure or delay on the part of CARI in exercising any power, right or remedy under this Agreement or the
First Step Receivables Assignments shall operate as a waiver thereof, nor shall any single or partial exercise of any such power, right or remedy preclude any other or further exercise thereof or the exercise of any other power, right or remedy.

 SECTION 7.06 Costs and Expenses. The Seller agrees to pay all reasonable out-of-pocket costs and expenses of CARI, including fees
and expenses of counsel, in connection with the perfection as against third parties of CARI’s right, title and interest in, to and under the Receivables and the enforcement of any obligation of the Seller hereunder. 

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

  
 21 

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

SECTION 7.10 No Petition Covenant. Notwithstanding any prior termination of this Agreement, the Seller shall not, prior to the date
which is one year and one day after the final distribution with respect to the Notes to the Note Distribution Account or, with respect to the Certificates, to the Certificateholder or the Certificate Distribution Account, acquiesce, petition or
otherwise invoke or cause CARI or the Issuing Entity to invoke the process of any court or government authority for the purpose of commencing or sustaining a case against CARI or the Issuing Entity under any federal or state bankruptcy, insolvency
or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of CARI or the Issuing Entity or any substantial part of the property of either of them, or ordering the winding up or
liquidation of the affairs of CARI or the Issuing Entity under any federal or State bankruptcy or insolvency proceeding. 
 SECTION 7.11
Limitations on Rights of Others. The provisions of this Agreement and the First Step Receivables Assignments are solely for the benefit of the Seller, the Servicer and CARI and, to the extent expressly provided herein, the Interested Parties,
and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in, under, or in respect of this Agreement or any covenants, conditions or provisions contained
herein. 
 SECTION 7.12 Merger and Consolidation of the Seller, the Servicer or CARI. Any corporation, limited liability company or
other entity (i) into which any of the Seller, the Servicer or CARI may be merged or consolidated, (ii) resulting from any merger or consolidation to which any of the Seller, the Servicer or CARI shall be a party, (iii) succeeding to
the business of any of the Seller, the Servicer or CARI or (iv) 25% or more of the voting stock (or, if not a corporation, other voting interests) of which is owned, directly or indirectly, by General Motors or Ally Financial, which
corporation, limited liability company or other entity in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Seller, the Servicer or CARI (as applicable) under this Agreement and the other Basic
Documents, shall be the successor to the Seller, the Servicer or CARI (as applicable) under this Agreement without the execution or filing of any document or any further act on the part of any of the parties to this Agreement. 

  
 22 

 SECTION 7.13 Assignment. Notwithstanding anything to the contrary contained in this
Agreement, this Agreement may be assigned by the Seller, the Servicer or CARI without the consent of any other Person to a corporation, limited liability company or other entity that is a successor (by merger, consolidation or purchase of assets) to
the Seller, the Servicer or CARI (as applicable), or 25% or more of the voting interests of which is owned, directly or indirectly, by General Motors or by Ally Financial, provided that the assignee of CARI executes an agreement of assumption, as
provided in Section 3.03(a) or 6.02 of the Trust Sale and Servicing Agreement. 

*    *    *    *    * 

  
 23 

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

			
	ALLY FINANCIAL INC.
		
	By:	 	  

	Name:	 	
	Title:	 	
	
	CAPITAL AUTO RECEIVABLES LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Pooling and Servicing Agreement (CARAT
2015-4) 

 EXHIBIT A 

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

For value received, in accordance with the Pooling and Servicing Agreement, dated as of October 21, 2015 (the “Pooling and
Servicing Agreement”), between Ally Financial Inc., a Delaware corporation (the “Seller” and the “Servicer”), and Capital Auto Receivables LLC, a Delaware limited liability company
(“CARI”), the Seller does hereby sell, assign, transfer and otherwise convey unto CARI, without recourse, as of October 21, 2015, (i) all right, title and interest of the Seller in, to and under the Initial Receivables
listed on the Schedule of Initial Receivables attached as Schedule A hereto and all monies received thereon on and after the Initial Cutoff Date, exclusive of any amounts allocable to the premium for physical damage collateral protection insurance
required by the Seller or the Servicer covering any related Financed Vehicle; (ii) the interest of the Seller in the security interests in the Financed Vehicles granted by Obligors pursuant to the Initial Receivables and, to the extent
permitted by law, any accessions thereto; (iii) the interest of the Seller in any proceeds from claims on any physical damage, credit life, credit disability or other insurance policies covering the related Financed Vehicles or Obligors;
(iv) the interest of the Seller in any proceeds from recourse against Dealers on the Initial Receivables; and (v) all right, title and interest of the Seller in, to and under the First Step Initial Receivables Assignment; (vi) the
right to purchase Additional Receivables during the Revolving Period at a price equal to the Aggregate Additional Receivables Principal Balance on each applicable Distribution Date; and (vii) all present and future claims, demands, causes and
choses in action in respect of any or all the foregoing described in clauses (i), (ii), (iii), (iv), and (v) above and all payments on or under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing,
including all proceeds of the conversion of any or all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit
accounts, insurance proceeds, investment property, payment intangibles, general intangibles, condemnation awards, rights to payment of any and every kind and other forms of obligations and receivables, instruments and other property which at any
time constitute all or part of or are included in the proceeds of any of the foregoing. 
 It is the intention of the Seller and CARI that
the sale, transfer, assignment and other conveyances of the Initial Receivables contemplated by the Pooling and Servicing Agreement and this First Step Initial Receivables Assignment shall constitute a sale of the Initial Receivables from the Seller
to CARI and the beneficial interest in and title to the Initial Receivables shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. 

The foregoing sale, transfer, assignment and other conveyances of the Initial Receivables contemplated by the Pooling and Servicing Agreement
and this First Step Initial Receivables Assignment do not constitute and are not intended to result in the creation of or an assumption by CARI of any obligation of the undersigned to the Obligors, Dealers, insurers or any other Person in connection
with the Initial Receivables, any Dealer Agreements, any insurance policies or any other agreement or instrument relating to any of them. 

  
 Ex. A-1 

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

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

 *    *    *    *    * 

  
 Ex. A-2 

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

			
	ALLY FINANCIAL INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Ex. A-3 

 EXHIBIT B 

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

For value received, in accordance with the Pooling and Servicing Agreement, dated as of October 21, 2015 (the “Pooling and Servicing
Agreement”), between Ally Financial Inc., a Delaware corporation (the “Seller” and the “Servicer”), and Capital Auto Receivables LLC, a Delaware limited liability company (“CARI”), the Seller
does hereby sell, assign, transfer and otherwise convey unto CARI, without recourse, as of [            ], 20[    ], (i) all right, title and interest of the Seller
in, to and under the Additional Receivables listed on the Schedule of Additional Receivables attached as Schedule A hereto and all monies received thereon on and after the related Subsequent Cutoff Date, exclusive of any amounts allocable to the
premium for physical damage collateral protection insurance required by the Seller covering any related Financed Vehicle; (ii) the interest of the Seller or the Servicer in the security interests in the Financed Vehicles granted by Obligors
pursuant to the Additional Receivables and, to the extent permitted by law, any accessions thereto; (iii) the interest of the Seller in any proceeds from claims on any physical damage, credit life, credit disability or other insurance policies
covering the related Financed Vehicles or Obligors; (iv) the interest of the Seller in any proceeds from recourse against Dealers on the Additional Receivables; (v) all right, title and interest of the Seller in, to and under the First
Step Additional Receivables Assignment; and (vi) all present and future claims, demands, causes and choses in action in respect of any or all the foregoing described in clauses (i), (ii), (iii), (iv), and (v) above and all payments on or
under and all proceeds of every kind and nature whatsoever in respect of any or all the foregoing, including all proceeds of the conversion of any or all of the foregoing, voluntary or involuntary, into cash or other liquid property, all cash
proceeds, accounts, accounts receivable, notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds, investment property, payment intangible, general intangibles, condemnation awards, rights to payment of any and every
kind and other forms of obligations and receivables, instruments and other property which at any time constitute all or part of or are included in the proceeds of any of the foregoing. 

It is the intention of the Seller and CARI that the sale, transfer, assignment and other conveyances of the Additional Receivables
contemplated by the Pooling and Servicing Agreement and this First Step Additional Receivables Assignment shall constitute a sale of the Additional Receivables from the Seller to CARI and the beneficial interest in and title to the Additional
Receivables shall not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. 

The foregoing sale, transfer, assignment and other conveyances of the Additional Receivables contemplated by the Pooling and Servicing
Agreement and this First Step Additional Receivables Assignment do not constitute and are not intended to result in the creation of or an assumption by CARI of any obligation of the undersigned to the Obligors, Dealers, insurers or any other Person
in connection with the Additional Receivables, any Dealer Agreements, any insurance policies or any other agreement or instrument relating to any of them. 

  
 Ex. B-1 

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

The Seller hereby represents that as of the Subsequent Cutoff Date the Aggregate Additional Receivables Principal Balance of the Additional
Receivables conveyed hereby was $[        ]. 
 The Seller and CARI hereby acknowledge that the
Aggregate Additional Receivables Principal Balance for the Additional Receivables assigned hereunder is $[        ]. 

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

  
 Ex. B-2 

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

			
	ALLY FINANCIAL INC.
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Ex. B-3 

 SCHEDULE A 

SCHEDULE OF RECEIVABLES 

The Schedule of Initial Receivables is, and the Schedule of 

Additional Receivables will be, on file at the offices of: 
  

	1.	The Indenture Trustee 

  

	2.	The Owner Trustee 

  

	3.	The Servicer 

  

	4.	The Seller 

  

	5.	Capital Auto Receivables LLC 

  
 Sch. A 

 APPENDIX A 

Part I 
 For ease of reference,
capitalized terms defined herein have been consolidated with and are contained in Part I of Appendix A to the Trust Sale and Servicing Agreement of even date herewith among Ally Financial Inc., CARI and Capital Auto Receivables Asset Trust 2015-4,
as amended and supplemented from time to time. 
 Part II 

For ease of reference, the rules of construction have been consolidated with and are contained in Part II of Appendix A to the Trust Sale and
Servicing Agreement of even date herewith among Ally Financial Inc., CARI and Capital Auto Receivables Asset Trust 2015-4, as amended and supplemented from time to time. 

Part III 
 For ease of reference,
the notice addresses and procedures have been consolidated with and are contained in Appendix B to the Trust Sale and Servicing Agreement of even date herewith among Ally Financial Inc., CARI and Capital Auto Receivables Asset Trust 2015-4, as
amended and supplemented from time to time. 

  
 App. A 

 APPENDIX B 

Additional Representations and Warranties 
  

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

 

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

 

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

 

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

 

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

 

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

 

	7.	The Custodian has in its possession or with third party vendors all original copies of the Receivables Files and other documents that constitute or evidence the Receivables and the Purchased Property. The Receivables
Files and other documents that constitute or evidence the Purchased Property do not have any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than CARI. All financing statements filed or
to be filed against the Seller in favor of CARI in connection herewith describing the Receivables contain a statement to the following effect: “A purchase of or security interest in any collateral described in this financing statement will
violate the rights of CARI.” 

  
 App. BEX-10.1

 Exhibit 10.1 

SECOND AMENDMENT TO CREDIT AGREEMENT 

THIS SECOND AMENDMENT TO CREDIT AGREEMENT, dated as of October 14, 2015 (this “Amendment”), is entered into among
FLOWSERVE CORPORATION, a New York corporation (the “Borrower”), the Lenders party hereto and BANK OF AMERICA, N.A., as Administrative Agent for the Lenders (in such capacity, the “Administrative Agent”). Capitalized
terms used herein and not otherwise defined shall have the meanings ascribed thereto in the Credit Agreement (as defined below). 

RECITALS 
 WHEREAS, the
Borrower, the Lenders and the Administrative Agent are parties to that certain Credit Agreement, dated as of August 20, 2012 (as amended or modified from time to time, the “Credit Agreement”); and 

WHEREAS, the parties hereto have agreed to amend the Credit Agreement as provided herein. 

NOW, THEREFORE, in consideration of the agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto agree as follows: 
 AGREEMENT 

1. Amendments. 

(a) The definition of “Aggregate Revolving Commitments” in Section 1.01 of the Credit Agreement is hereby
amended to read as follows: 
 “Aggregate Revolving Commitments” means the Revolving Commitments of all the
Lenders. The initial amount of the Aggregate Revolving Commitments in effect on the Second Amendment Effective Date is $1,000,000,000. 

(b) The pricing grid set forth in the definition of “Applicable Rate” in Section 1.01 of the Credit Agreement is
hereby amended to read as follows: 
  

																											
	 Pricing Level
	  	Debt Rating	  	Commitment
Fee	 	 	Eurocurrency
Rate Loans	 	 	Base Rate
Loans	 	 	Letter of Credit Fees	 
	  	  	 	 	 	Financial	 	 	Performance	 	 	Commercial	 
	 1
	  	A3/A-or better	  	 	0.09	% 	 	 	1.000	% 	 	 	0.000	% 	 	 	1.000	% 	 	 	0.500	% 	 	 	0.25	% 
	 2
	  	Baa1/BBB+	  	 	0.11	% 	 	 	1.125	% 	 	 	0.125	% 	 	 	1.125	% 	 	 	0.550	% 	 	 	0.30	% 
	 3
	  	Baa2/BBB	  	 	0.15	% 	 	 	1.250	% 	 	 	0.250	% 	 	 	1.250	% 	 	 	0.625	% 	 	 	0.375	% 
	 4
	  	Baa3/BBB-	  	 	0.20	% 	 	 	1.500	% 	 	 	0.500	% 	 	 	1.500	% 	 	 	0.750	% 	 	 	0.45	% 
	 5
	  	Ba1/BB+ or worse	  	 	0.25	% 	 	 	1.750	% 	 	 	0.750	% 	 	 	1.750	% 	 	 	0.875	% 	 	 	0.50	% 

 (c) The definition of “Change of Control” in Section 1.01 of the Credit
Agreement is hereby amended to read as follows: 
 “Change of Control” means an event or series of events by
which: (a) any person or group (within the meaning of Rule 13(d) and 14(d) of the Securities Exchange Act of 

  
 1 

 
1934 as in effect on the Closing Date) shall beneficially own (within the meaning of Rules 13d-3 and13d-5 of the Securities Exchange Act of 1934 as in effect on the Closing Date) directly or
indirectly, shares representing more than 35% of the aggregate ordinary voting power represented by the issued and outstanding capital stock of the Borrower; (b) a majority of the seats (other than vacant seats) on the board of directors of the
Borrower shall at any time be occupied by persons who were neither (i) nominated, appointed or approved for election by the board of directors of the Borrower, nor (ii) appointed by directors so nominated, appointed or approved for
election; or (c) any change in control (or similar event, however denominated) with respect to the Borrower or any Subsidiary shall occur under and as defined in any indenture or agreement in respect of Material Indebtedness to which the
Borrower or any Subsidiary is a party. 
 (d) The definition of “Eurocurrency Base Rate” in Section 1.01 of
the Credit Agreement is hereby amended to read as follows: 
 “Eurocurrency Base Rate” means, 

(a) for any Interest Period with respect to a Eurocurrency Rate Loan, 

(i) in the case of Eurocurrency Rate Loan (other than with respect to a two week Interest Period) denominated in a LIBOR
Quoted Currency, the rate per annum equal to the London Interbank Offered Rate (“LIBOR”) or a comparable or successor rate, which rate is approved by the Administrative Agent, as published on the applicable Bloomberg screen page (or
such other commercially available source providing such quotations as may be designated by the Administrative Agent from time to time) (in such case, the “LIBOR Rate”) at or about 11:00 a.m., London time, two Business Days prior to
the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term equivalent to such Interest Period; 

(ii) in the case of Eurocurrency Rate Loan with a two week Interest Period denominated in a LIBOR Quoted Currency, the rate
per annum equal to the LIBOR Rate at or about 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for deposits in the relevant currency (for delivery on the first day of such Interest Period) with a term of
one month; and 
 (iii) in the case of any other Eurocurrency Rate Loan denominated in a Non-LIBOR Quoted Currency (other
than those specified above), the rate designated with respect to such Alternative Currency at the time such Alternative Currency is approved by the Administrative Agent and the Lenders pursuant to Section 1.08 and 

(b) for any interest calculation with respect to a Base Rate Loan on any date, the rate per annum equal to the LIBOR Rate, at
about 11:00 a.m., London time determined two Business Days prior to such date for Dollar deposits for a term of one month commencing that day; 

provided that (i) if the Eurocurrency Base Rate shall be less than zero, such rate shall be deemed zero for
purposes of this Agreement and (ii) to the extent a comparable 

  
 2 

 
or successor rate is approved by the Administrative Agent in connection herewith, the approved rate shall be applied in a manner consistent with market practice; provided, further
that to the extent such market practice is not administratively feasible for the Administrative Agent, such approved rate shall be applied as otherwise reasonably determined by the Administrative Agent. The Administrative Agent does not warrant, nor
accept responsibility, nor shall the Administrative Agent have any liability with respect to the administration, submission or any other matter related to the rates in this definition of “Eurocurrency Base Rate” or with respect to any
comparable or successor rate thereto. 
 (e) The definition of “Guarantors” in Section 1.01 of the Credit
Agreement is hereby amended to read as follows: 
 “Guarantors” means, collectively, (a) each Domestic
Subsidiary of the Borrower that, at the Borrower’s option, joins as a Guarantor by execution and delivery of a Joinder Agreement, together with supporting documentation and (b) with respect to (i) Obligations under any Swap Contract,
(ii) Obligations under any Treasury Management Agreement and (iii) any Swap Obligation of a Specified Loan Party (determined before giving effect to Sections 4.01 and 4.08) under the Guaranty, the Borrower, and (c) the
successors and permitted assigns of the foregoing. 
 (f) The definition of “Guaranty Release Condition” in
Section 1.01 of the Credit Agreement is hereby deleted in its entirety. 
 (g) The definition of “Joinder
Agreement” in Section 1.01 of the Credit Agreement is hereby amended to read as follows: 
 “Joinder
Agreement” means a joinder agreement substantially in the form of Exhibit 7.10 executed and delivered by a Domestic Subsidiary. 

(h) The definition of “L/C Issuer” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 “L/C Issuer” each of (a) Bank of America, in its capacity as issuer of Letters of Credit hereunder,
(b) JPMorgan Chase Bank, N.A., in its capacity as issuer of Letters of Credit hereunder, (c) BNP Paribas, in its capacity as issuer of Letters of Credit hereunder, (d) Wells Fargo Bank, National Association, in its capacity as issuer
of Letters of Credit hereunder, (e) Credit Agricole Corporate and Investment Bank, in its capacity as issuer of Letters of Credit hereunder, (f) any other Lender with a Revolving Commitment that upon request of the Borrower agrees to issue
one or more Letters of Credit hereunder and (g) any successor issuer of Letters of Credit hereunder. The term “L/C Issuer” when used with respect to a Letter of Credit or the L/C Obligations relating to a Letter of Credit shall
refer to the L/C Issuer that issued such Letter of Credit. 
 (i) The definition of “Letter of Credit Sublimit” in
Section 1.01 of the Credit Agreement is hereby amended to read as follows: 
 “Letter of Credit
Sublimit” means $750,000,000; provided that, the sublimit shall be (a) $250,000,000 in the case of commercial Letters of Credit and (b) $125,000,000 in the case of financial standby Letters of Credit; provided,
further, that with respect to each of Bank of America, JPMorgan Chase Bank, N.A., BNP Paribas, Wells Fargo Bank, 

  
 3 

 
National Association and Credit Agricole Corporate and Investment Bank, in its capacity as an L/C Issuer, such L/C Issuer shall not be obligated to issue Letters of Credit in an amount greater
than the amount set forth on part (b) of Schedule 2.01. The Letter of Credit Sublimit is part of, and not in addition to, the Aggregate Revolving Commitments. 

(j) The definition of “Loan Notice” in Section 1.01 of the Credit Agreement is hereby amended to read as
follows: 
 “Loan Notice” means a notice of (a) a Borrowing of Revolving Loans or the Term Loan,
(b) a conversion of Loans from one Type to the other, or (c) a continuation of Eurocurrency Rate Loans, in each case pursuant to Section 2.02(a), which shall be substantially in the form of Exhibit 2.02 or such
other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent) appropriately completed and signed by a Responsible Officer
of the Borrower. 
 (k) The definition of “Maturity Date” in Section 1.01 of the Credit Agreement is hereby
amended to read as follows: 
 “Maturity Date” means October [    ], 2020;
provided, however, that if such date is not a Business Day, the Maturity Date shall be the next preceding Business Day. 

(l) The definition of “Priority Debt” in Section 1.01 of the Credit Agreement is hereby amended to read as
follows: 
 “Priority Debt” means, as of any date of determination thereof, the sum (without duplication) of
(a) Indebtedness of Subsidiaries on such date, other than Indebtedness of any Subsidiary that is a Guarantor, and (b) Indebtedness of the Borrower and its Subsidiaries secured by Liens; provided that Priority Debt shall not include
Indebtedness permitted by Sections 8.01(a) through 8.01(f) and any Guarantees of such Indebtedness permitted by Section 8.01(h). 

(m) The definition of “Responsible Officer” in Section 1.01 of the Credit Agreement is hereby amended to read as
follows: 
 “Responsible Officer” means the chief executive officer, president, chief financial officer,
treasurer, assistant treasurer or controller of a Loan Party, solely for purposes of the delivery of incumbency certificates pursuant to Section 5.01, the secretary or any assistant secretary of a Loan Party and, solely for purposes of
notices given pursuant to Article II, any other officer of the applicable Loan Party so designated by any of the foregoing officers in a notice to the Administrative Agent or any other officer or employee of the applicable Loan Party
designated in or pursuant to an agreement between the applicable Loan Party and the Administrative Agent. Any document delivered hereunder that is signed by a Responsible Officer of a Loan Party shall be conclusively presumed to have been authorized
by all necessary corporate, partnership and/or other action on the part of such Loan Party and such Responsible Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

(n) The definition of “Swing Line Loan Notice” in Section 1.01 of the Credit Agreement is hereby amended to read
as follows: 

  
 4 

 “Swing Line Loan Notice” means a notice of a Borrowing of Swing
Line Loans pursuant to Section 2.04(b), which shall be substantially in the form of Exhibit 2.04 or such other form as approved by the Administrative Agent (including any form on an electronic platform or electronic transmission
system as shall be approved by the Administrative Agent pursuant), appropriately completed and signed by a Responsible Officer of the Borrower. 

(o) The definition of “Term Loan” in Section 1.01 of the Credit Agreement is hereby amended to read as follows:

 “Term Loan” has the meaning specified in Section 2.01(b). The aggregate principal amount of
the Term Loan on the Second Amendment Effective Date is $300,000,000. 
 (p) The following definitions are hereby added to
Section 1.01 of the Credit Agreement in the appropriate alphabetical order to read as follows: 
 “Designated
Jurisdiction” means any country or territory to the extent that such country or territory itself is the subject of any Sanction. 

“Notice of Loan Prepayment” means a notice of prepayment with respect to a Loan, which shall be substantially
in the form of Exhibit 2.05 or such other form as may be approved by the Administrative Agent (including any form on an electronic platform or electronic transmission system as shall be approved by the Administrative Agent), appropriately
completed and signed by a Responsible Officer. 
 “OFAC” means the Office of Foreign Assets Control of the
United States Department of the Treasury. 
 “Sanction(s)” means any sanction administered or enforced by
the United States Government, including OFAC, the United Nations Security Council, the European Union, Her Majesty’s Treasury (“HMT”) or other relevant sanctions authority. 

“Second Amendment Effective Date” means October [    ], 2015. 

(q) The definitions of “First Amendment Effective Date” in Section 1.01 of the Credit Agreement is hereby
deleted. 
 (r) Section 2.02(a) of the Credit Agreement is hereby amended to read as follows: 

(a) Each Borrowing, each conversion of Loans from one Type to the other, and each continuation of Eurocurrency Rate Loans shall
be made upon the Borrower’s irrevocable notice to the Administrative Agent, which may be given by (A) telephone or (B) a Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the
Administrative Agent of a Loan Notice. Each such Loan Notice must be received by the Administrative Agent not later than 12:00 noon (i) three Business Days prior to the requested date of any Borrowing of, conversion to or continuation of,
Eurocurrency Rate Loans denominated in Dollars or of any conversion of Eurocurrency Rate Loans denominated in Dollars to Base Rate Loans, (ii) four Business Days (or five Business Days in the case of a Special Notice Currency) prior to the
requested date of any Borrowing or continuation of Eurocurrency Rate Loans denominated in Alternative 

  
 5 

 
Currencies and (iii) on the requested date of any Borrowing of Base Rate Loans. Each Borrowing of, conversion to or continuation of Eurocurrency Rate Loans shall be in a principal amount of
$5,000,000 or a whole multiple of $1,000,000 in excess thereof. Except as provided in Sections 2.03(c) and 2.04(c) or with respect to a Borrowing of the remaining available amount under the Aggregate Revolving Commitments, each
Borrowing of or conversion to Base Rate Loans shall be in a principal amount of $1,000,000 or a whole multiple of $500,000 in excess thereof. Each Loan Notice shall specify (i) whether the Borrower is requesting a Borrowing, a conversion of
Loans from one Type to the other, or a continuation of Eurocurrency Rate Loans, (ii) the requested date of the Borrowing, conversion or continuation, as the case may be (which shall be a Business Day), (iii) the principal amount of Loans
to be borrowed, converted or continued, (iv) the Type of Loans to be borrowed or to which existing Loans are to be converted, (v) if applicable, the duration of the Interest Period with respect thereto and (vi) the currency of the
Loans to be borrowed. If the Borrower fails to specify a currency in a Loan Notice requesting a Borrowing, then the Loans so requested shall be made in Dollars. If the Borrower fails to specify a Type of a Loan in a Loan Notice or if the Borrower
fails to give a timely notice requesting a conversion or continuation, then the applicable Loans shall be made as, or converted to, Base Rate Loans; provided, however, that in the case of a failure to timely request a continuation of
Loans denominated in an Alternative Currency, such Loans shall be continued as Eurocurrency Rate Loans in their original currency with an Interest Period of one month. Any automatic conversion to Base Rate Loans shall be effective as of the last day
of the Interest Period then in effect with respect to the applicable Eurocurrency Rate Loans. If the Borrower requests a Borrowing of, conversion to, or continuation of Eurocurrency Rate Loans in any Loan Notice, but fails to specify an Interest
Period, it will be deemed to have specified an Interest Period of one month. No Loan may be converted into or continued as a Loan denominated in a different currency, but instead must be prepaid in the original currency of such Loan and reborrowed
in the other currency. Notwithstanding anything to the contrary herein, a Swing Line Loan may not be converted to a Eurocurrency Rate Loan. 

(s) Section 2.04(b) of the Credit Agreement is hereby amended to read as follows: 

(b) Borrowing Procedures. Each Borrowing of Swing Line Loans shall be made upon the Borrower’s irrevocable notice
to the Swing Line Lender and the Administrative Agent, which may be given by (A) telephone or (B) a Swing Line Loan Notice; provided that any telephonic notice must be confirmed immediately by delivery to the Swing Line Lender and
the Administrative Agent of a Swing Line Loan Notice. Each such Swing Line Loan Notice must be received by the Swing Line Lender and the Administrative Agent not later than 1:00 p.m. on the requested borrowing date, and shall specify (i) the
amount to be borrowed, which shall be a minimum principal amount of $500,000 and integral multiples of $100,000 in excess thereof, and (ii) the requested borrowing date, which shall be a Business Day. Promptly after receipt by the Swing Line
Lender of any telephonic Swing Line Loan Notice, the Swing Line Lender will confirm with the Administrative Agent (by telephone or in writing) that the Administrative Agent has also received such Swing Line Loan Notice and, if not, the Swing Line
Lender will notify the Administrative Agent (by telephone or in writing) of the contents thereof. Unless the Swing Line Lender has received notice (by telephone or in writing) from the Administrative Agent (including at the request of any Lender)
prior to 2:00 p.m. on the date of the proposed Borrowing of Swing Line Loans (A) directing the Swing Line Lender not to make such Swing Line Loan as a result of the limitations set forth in the first proviso to the first sentence of
Section 2.04(a), or (B) that one or more of the 

  
 6 

 
applicable conditions specified in Article V is not then satisfied, then, subject to the terms and conditions hereof, the Swing Line Lender will, not later than 3:00 p.m. on the borrowing
date specified in such Swing Line Loan Notice, make the amount of its Swing Line Loan available to the Borrower. 
 (t) The
first sentence in Section 2.05(a)(i) of the Credit Agreement is hereby amended to read as follows: 
 The Borrower may,
upon delivery of a Notice of Loan Prepayment from the Borrower to the Administrative Agent, at any time or from time to time voluntarily prepay Revolving Loans and the Term Loan in whole or in part without premium or penalty; provided that
(A) such notice must be received by the Administrative Agent not later than 11:00 a.m. (1) three Business Days prior to any date of prepayment of Eurocurrency Rate Loans denominated in Dollars, (2) four Business Days (or five Business
Days in the case of a Special Notice Currency) prior to any date of prepayment of Eurocurrency Loans denominated in Alternative Currencies and (3) on the date of prepayment of Base Rate Loans; (B) any such prepayment of Eurocurrency Rate
Loans shall be in a principal amount of $5,000,000 or a whole multiple of $1,000,000 in excess thereof (or, if less, the entire principal amount thereof then outstanding); (C) any prepayment of Base Rate Loans shall be in a principal amount of
$1,000,000 or a whole multiple of $500,000 in excess thereof (or, if less, the entire principal amount thereof then outstanding) and (D) any prepayment of the Term Loan shall be applied ratably to the remaining principal amortization payments.

 (u) Section 2.07(c) of the Credit Agreement is hereby amended to read as follows: 

(c) Term Loan. The Borrower shall repay the outstanding principal amount of the Term Loan in installments on the dates
and in the amounts set forth in the table below (as such installments may hereafter be adjusted as a result of prepayments made pursuant to Section 2.05 or increased pursuant to Section 2.01(d)), unless accelerated sooner
pursuant to Section 9.02: 
  

					
	 Payment Dates
	  	Principal Amortization Payment	 
	 December 31, 2015
	  	$	15,000,000	  
	 March 31, 2016
	  	$	15,000,000	  
	 June 30, 2016
	  	$	15,000,000	  
	 September 30, 2016
	  	$	15,000,000	  
	 December 31, 2016
	  	$	15,000,000	  
	 March 31, 2017
	  	$	15,000,000	  
	 June 30, 2017
	  	$	15,000,000	  
	 September 30, 2017
	  	$	15,000,000	  
	 December 31, 2017
	  	$	15,000,000	  
	 March 31, 2018
	  	$	15,000,000	  
	 June 30, 2018
	  	$	15,000,000	  
	 September 30, 2018
	  	$	15,000,000	  

  
 7 

					
	 Payment Dates
	  	Principal Amortization Payment	 
	 December 31, 2018
	  	$	15,000,000	  
	 March 31, 2019
	  	$	15,000,000	  
	 June 30, 2019
	  	$	15,000,000	  
	 September 30, 2019
	  	$	15,000,000	  
	 December 31, 2019
	  	$	15,000,000	  
	 March 31, 2020
	  	$	15,000,000	  
	 June 30, 2020
	  	$	15,000,000	  
	 September 30, 2020
	  	$	15,000,000	  

 (v) Section 5.02(a) of the Credit Agreement is hereby amended to read as follows: 

(a) The representations and warranties of each Loan Party contained in Article VI or any other Loan Document, or which
are contained in any document furnished at any time under or in connection herewith or therewith, shall be true and correct in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it
shall be true and correct in all respects as drafted) on and as of the date of such Credit Extension, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be true and correct
in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it shall be true and correct in all respects as drafted) as of such earlier date, except that if the proceeds of such Loan are
to be used to support the Borrower’s commercial paper program, the representations set forth in Sections 6.06 and 6.09(a) need not be made. 

(w) A new Section 6.22 is hereby added to the Credit Agreement to read as follows: 

 

	 	6.22  	OFAC. 

 None of the Loan Parties, nor any of their Subsidiaries,
nor, to the knowledge of the Loan Parties and their Subsidiaries, any director, officer or employee thereof, is an individual or entity that is, or is owned or controlled by any individual or entity that is (i) currently the subject or target
of any Sanctions, (ii) included on OFAC’s List of Specially Designated Nationals, HMT’s Consolidated List of Financial Sanctions Targets and the Investment Ban List, or any similar list enforced by any other relevant sanctions
authority or (iii) located, organized or resident in a Designated Jurisdiction. 
 (x) A new Section 6.23 is hereby
added to the Credit Agreement to read as follows: 
  

	 	6.23  	Anti-Corruption Laws. 

 The Loan Parties and their Subsidiaries
have conducted their businesses in all material respects in compliance with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010, and other similar anti-corruption legislation in other jurisdictions and have instituted
and maintained policies and procedures designed to promote and achieve compliance with such laws. 
 (y) Section 7.10 of
the Credit Agreement is hereby amended to read as follows: 

  
 8 

	 	7.10	  [Reserved]. 

 (z) A new Section 7.11 is hereby
added to the Credit Agreement to read as follows: 
  

	 	7.11  	Anti-Corruption Laws. 

 Conduct its businesses in compliance in
all material respects with the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 and other similar anti-corruption legislation in other jurisdictions and maintain policies and procedures designed to promote and achieve
compliance with such laws. 
 (aa) Section 8.11(a) of the Credit Agreement is hereby amended to read as follows: 

(a) Consolidated Leverage Ratio. Permit the Consolidated Leverage Ratio as of the end of any fiscal quarter of the
Borrower to be greater than 3.50 to 1.0. 
 (bb) A new Section 8.13 is hereby added to the Credit Agreement to read as
follows: 
  

	 	8.13  	Sanctions. 

 Directly or indirectly, use any Credit Extension or
the proceeds of any Credit Extension, or lend, contribute or otherwise make available such Credit Extension or the proceeds of any Credit Extension to any Person, to fund any activities of or business with any Person, or in any Designated
Jurisdiction, that, at the time of such funding, is the subject of Sanctions, or in any other manner that will result in a violation by any Person (including any Person participating in the transaction, whether as Lender, arranger, Administrative
Agent, L/C Issuer, Swing Line Lender, or otherwise) of Sanctions. 
 (cc) A new Section 8.14 is hereby added to the
Credit Agreement to read as follows: 
  

	 	8.14  	Anti-Corruption Laws. 

 Directly or indirectly use the proceeds of
any Credit Extension for any purpose which would breach the United States Foreign Corrupt Practices Act of 1977, the UK Bribery Act 2010 or other similar anti-corruption legislation in other jurisdictions. 

(dd) Section 11.02(b) of the Credit Agreement is hereby amended to read as follows: 

(b) Electronic Communications. Notices and other communications to the Lenders and the L/C Issuer hereunder may be
delivered or furnished by electronic communication (including e mail, FpML messaging, and Internet or intranet websites) pursuant to procedures approved by the Administrative Agent, provided that the foregoing shall not apply to notices to
any Lender or the L/C Issuer pursuant to Article II if such Lender or the L/C Issuer, as applicable, has notified the Administrative Agent that it is incapable of receiving notices under such Article by electronic communication. The
Administrative Agent, the Swing Line Lender, the L/C Issuer or the Borrower may each, in its discretion, agree to accept notices and other communications to it hereunder by electronic communications pursuant to procedures approved by it,
provided that approval of such procedures may be limited to particular notices or communications. 

  
 9 

 Unless the Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an e-mail address shall be deemed received upon the sender’s receipt of an acknowledgement from the intended recipient (such as by the “return receipt requested” function, as available, return e-mail or other
written acknowledgement) and (ii) notices or communications posted to an Internet or intranet website shall be deemed received upon the deemed receipt by the intended recipient at its e-mail address as described in the foregoing clause
(i) of notification that such notice or communication is available and identifying the website address therefor; provided that, for both clauses (i) and (ii), if such notice, email or other communication is not sent
during the normal business hours of the recipient, such notice, email or communication shall be deemed to have been sent at the opening of business on the next business day for the recipient. 

(ee) Section 11.17 of the Credit Agreement is hereby amended to read as follows: 

 

	 	11.17	  Electronic Execution of Assignments and Certain Other Documents. 

The words “execute,” “execution,” “signed,” “signature,” and words of like import in or
related to any document to be signed in connection with this Agreement, any other document executed in connection herewith and the transactions contemplated hereby (including without limitation Assignment and Assumptions, amendments or other
modifications, Loan Notices, Swing Line Loan Notices, waivers and consents) shall be deemed to include electronic signatures, the electronic matching of assignment terms and contract formations on electronic platforms approved by the Administrative
Agent, or the keeping of records in electronic form, each of which shall be of the same legal effect, validity or enforceability as a manually executed signature, physical delivery or the use of a paper-based recordkeeping system, as the case may
be, to the extent and as provided for in any applicable law, including the Federal Electronic Signatures in Global and National Commerce Act, the New York State Electronic Signatures and Records Act, or any other similar state laws based on the
Uniform Electronic Transactions Act; provided that notwithstanding anything contained herein to the contrary the Administrative Agent is under no obligation to agree to accept electronic signatures in any form or in any format unless
expressly agreed to by the Administrative Agent pursuant to procedures approved by it; provided further without limiting the foregoing, upon the request of any party, any electronic signature shall be promptly followed by such manually
executed counterpart. 
 (ff) A new Exhibit 2.05 to the Credit Agreement is hereby added in the form of Exhibit 2.05 attached
hereto. 
 (gg) Schedule 2.01 to the Credit Agreement is hereby amended to read as Schedule 2.01 attached hereto. 

2. Effectiveness; Conditions Precedent. This Amendment shall be effective when all of the conditions set forth in this Section 2
have been satisfied: 
 (a) receipt by the Administrative Agent of copies of this Amendment duly executed by the Borrower and
each Lender; 
 (b) receipt by the Administrative Agent of favorable opinions of legal counsel to the Borrower, addressed to
the Administrative Agent and each Lender, dated as of the Second Amendment Effective Date, and in form and substance reasonably satisfactory to the Administrative Agent; 

  
 10 

 (c) receipt by the Administrative Agent of the following, in form and substance
satisfactory to the Administrative Agent: 
 (i) copies of the Organization Documents of the Borrower certified to be true
and complete as of a recent date by the appropriate Governmental Authority of the state or other jurisdiction of its incorporation or organization, where applicable, and certified by a Responsible Officer of the Borrower to be true and correct as of
the Second Amendment Effective Date; 
 (ii) such certificates of resolutions or other action, incumbency certificates and/or
other certificates of Responsible Officers of the Borrower as the Administrative Agent may require evidencing the identity, authority and capacity of each Responsible Officer thereof authorized to act as a Responsible Officer in connection with this
Agreement and the other Loan Documents; and 
 (iii) such documents and certifications as the Administrative Agent may
reasonably require to evidence that the Borrower is duly organized or formed, and is validly existing, in good standing and qualified to engage in business in its state of organization or formation. 

(d) there shall not have occurred a material adverse change since December 31, 2014 in the business, assets, liabilities
(actual or contingent), operations or financial condition of the Borrower and its Subsidiaries, taken as a whole; 
 (e)
receipt by the Administrative Agent, MLPFS and the Lenders of all agreed fees required to be paid on or before the Second Amendment Effective Date; and 

(f) the Borrower shall have paid all fees, charges and disbursements of counsel to the Administrative Agent (directly to such
counsel if requested by the Administrative Agent) to the extent invoiced prior to or on the Second Amendment Effective Date, plus such additional amounts of such fees, charges and disbursements as shall constitute its reasonable estimate of such
fees, charges and disbursements incurred or to be incurred by it through the closing proceedings (provided that such estimate shall not thereafter preclude a final settling of accounts between the Borrower and the Administrative Agent). 

3. Ratification of Credit Agreement. The Borrower acknowledges and consents to the terms set forth herein and agrees that this
Amendment does not impair, reduce or limit any of its obligations under the Loan Documents, as amended hereby. This Amendment is a Loan Document. 

4. Authority/Enforceability. The Borrower represents and warrants as follows: 

(a) It has taken all necessary action to authorize the execution, delivery and performance of this Amendment. 

(b) This Amendment has been duly executed and delivered by the Borrower and constitutes its legal, valid and binding
obligations, enforceable in accordance with its terms, except as may be limited by applicable Debtor Relief Laws or by equitable principles relating to enforceability. 

  
 11 

 (c) No action, consent or approval of, registration or filing with or any other
action by any Governmental Authority is or will be required in connection with the execution, delivery or performance by, or enforcement against, the Borrower, except for such as have been made or obtained and are in full force and effect. 

(d) The execution and delivery of this Amendment does not (i) violate the terms of its Organization Documents or
(ii) violate any Law. 
 5. Representations and Warranties of the Borrower. The Borrower represents and warrants to the Lenders
that after giving effect to this Amendment (a) the representations and warranties set forth in Article VI of the Credit Agreement are true and correct in all material respects (or, if such representation or warranty is qualified by
materiality or Material Adverse Effect, it shall be true and correct in all respects as drafted) as of the date hereof, except to the extent that such representations and warranties specifically refer to an earlier date, in which case they shall be
true and correct in all material respects (or, if such representation or warranty is qualified by materiality or Material Adverse Effect, it shall be true and correct in all respects as drafted) as of such earlier date, and (b) no Default
exists. 
 6. Counterparts/Facsimile. This Amendment may be executed in any number of counterparts, each of which when so executed
and delivered shall be an original, but all of which shall constitute one and the same instrument. Delivery of executed counterparts of this Amendment by facsimile or other secure electronic format (.pdf) shall be effective as an original. 

7. GOVERNING LAW. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

8. Successors and Assigns. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective
successors and assigns. 
 9. Headings. The headings of the sections hereof are provided for convenience only and shall not in any
way affect the meaning or construction of any provision of this Amendment. 
 10. Severability. If any provision of this Amendment is
held to be illegal, invalid or unenforceable, (a) the legality, validity and enforceability of the remaining provisions of this Amendment shall not be affected or impaired thereby and (b) the parties shall endeavor in good faith
negotiations to replace the illegal, invalid or unenforceable provisions with valid provisions the economic effect of which comes as close as possible to that of the illegal, invalid or unenforceable provisions. The invalidity of a provision in a
particular jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 11. FATCA
Certification. For purposes of determining withholding Taxes imposed under FATCA, from and after the Second Amendment Effective Date, the Borrower and the Administrative Agent shall treat (and the Lenders hereby authorize the Administrative
Agent to treat) the Obligations under the Credit Agreement as not qualifying as a “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-2(b)(2)(i). 

12. Exiting Lenders. Each of the entities executing this Amendment under the heading “Exiting Lenders”, each in its capacity
as an existing Lender under the Credit Agreement (an “Exiting Lender”), is signing this Amendment for the sole purpose of amending the Credit Agreement and assigning its Commitments and outstanding Loans to the other Lenders party
hereto. Upon giving effect to this Amendment, the outstanding Loans and Commitments of each Exiting Lender under the Credit Agreement shall be fully assigned at par to the other Lenders party hereto to the extent necessary such

  
 12 

 
that after giving effect thereto, the Commitments (and related Loans) shall be held by the non-Exiting Lenders according to Schedule 2.01 hereto, provided that interest and fees that have
accrued for the account of the Existing Lenders prior to the effectiveness of this Amendment will be paid to such Exiting Lenders, and each Exiting Lender shall cease to be a Lender under the Credit Agreement. The assignment effected by this Section
shall be an assignment for all purposes of the Credit Agreement and be deemed to have been consummated in accordance with Section 11.06. 

13. THIS AMENDMENT AND THE OTHER LOAN DOCUMENTS REPRESENT THE FINAL AGREEMENT AMONG THE PARTIES AND MAY NOT BE CONTRADICTED BY EVIDENCE OF
PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES. 

[remainder of page intentionally left blank] 

  
 13 

 Each of the parties hereto has caused a counterpart of this Amendment to be duly executed and
delivered as of the date first above written. 
  

									
	BORROWER:	 		 	FLOWSERVE CORPORATION,	 	
		 		 	a New York corporation	 	
					
		 		 	By:	 	 /s/ John E. Roueche, III
	 	
		 		 	Name: John E. Roueche, III	 	
		 		 	Title: Vice President, Investor Relations and Treasurer

									
	ADMINISTRATIVE	 		 		 		 	
	AGENT:	 		 	BANK OF AMERICA, N.A.,	 	
		 		 	as Administrative Agent	 	
					
		 		 	By:	 	 /s/ Darleen R DiGrazia
	 	
		 		 	Name: Darleen R DiGrazia	 	
		 		 	Title: Vice President	 	

									
	LENDERS:	 		 	BANK OF AMERICA, N.A.,	 	
		 		 	as a Lender, L/C Issuer and Swing Line Lender
					
		 		 	By:	 	 /s/ Christopher Wozniak
	 	
		 		 	Name: Christopher Wozniak	 	
		 		 	Title: Vice President	 	
			
		 		 	 JPMORGAN CHASE BANK, N.A.,
 as a
Lender and L/C Issuer

					
		 		 	By:	 	 /s/ Maria Riaz
	 	
		 		 	Name: Maria Riaz	 	
		 		 	Title: Vice President	 	
			
		 		 	 WELLS FARGO BANK, NATIONAL ASSOCIATION,

as a Lender and L/C Issuer

					
		 		 	By:	 	 /s/ Reginald M. Goldsmith III
	 	
		 		 	Name: Reginald M. Goldsmith III	 	
		 		 	Title: Managing Director	 	
			
		 		 	CREDIT AGRICOLE CORPORATE AND INVESTMENT BANK,
		 		 	as a Lender and L/C Issuer	 	
					
		 		 	By:	 	 /s/ Kaye Ea
	 	
		 		 	Name: Kaye Ea	 	
		 		 	Title: Managing Director	 	
					
		 		 	By:	 	 /s/ Gordon Yip
	 	
		 		 	Name: Godon Yip	 	
		 		 	Title: Director	 	
			
		 		 	 THE BANK OF TOKYO-MITSUBISHI UFJ, LTD.,

as a Lender

					
		 		 	By:	 	 /s/ Thomas J. Sterr
	 	
		 		 	Name: Thomas J. Sterr	 	
		 		 	Title: Authorized Signatory	 	
			
		 		 	 MIZUHO BANK, LTD.,
 as a
Lender

					
		 		 	By:	 	 /s/ Takayuki Tomii
	 	
		 		 	Name: Takayuki Tomii	 	
		 		 	Title: Deputy General Manager	 	

									
		 		 	MIZUHO BANK (USA),	 	
		 		 	as a Lender	 	
					
		 		 	By:	 	 /s/ Takayuki Tomii
	 	
		 		 	Name: Takayuki Tomii	 	
		 		 	Title: Deputy General Manager	 	
			
		 		 	 LLOYDS BANK PLC,
 as a
Lender

					
		 		 	By:	 	 /s/ Erin Doherty
	 	
		 		 	Name: Erin Doherty	 	
		 		 	Title: Assistant Vice President	 	
					
		 		 	By:	 	 /s/ Dennis McClellan
	 	
		 		 	Name: Dennis McClellan	 	
		 		 	Title: Assistant Vice President	 	
			
		 		 	 PNC BANK NATIONAL ASSOCIATION,

as a Lender

					
		 		 	By:	 	 /s/ Christian S. Brown
	 	
		 		 	Name: Christian S. Brown	 	
		 		 	Title: Managing Director	 	
			
		 		 	 COMPASS BANK,
 as a
Lender

					
		 		 	By:	 	 /s/ Daniel Feldman
	 	
		 		 	Name: Daniel Feldman	 	
		 		 	Title: Vice President	 	
			
		 		 	 SUMITOMO MITSUI BANKING CORPORATION,

as a Lender

					
		 		 	By:	 	 /s/ David Kee
	 	
		 		 	Name: David Kee	 	
		 		 	Title: Managing Director	 	
			
		 		 	 BRANCH BANKING AND TRUST COMPANY,

as a Lender

					
		 		 	By:	 	 /s/ Allan K Kine
	 	
		 		 	Name: Allan K Kine	 	
		 		 	Title: Senior Vice President	 	

									
		 		 	U.S. BANK NATIONAL ASSOCIATION,	 	
		 		 	as a Lender	 	
					
		 		 	By:	 	 /s/ Kara Van Duzee
	 	
		 		 	Name: Kara Van Duzee	 	
		 		 	Title: Vice President	 	
				
		 		 	 CITIBANK, N.A.,
 as a
Lender
	 	
					
		 		 	By:	 	 /s/ Jyothi Narayanan
	 	
		 		 	Name: Jyothi Narayanan	 	
		 		 	Title: Vice President	 	
				
		 		 	 FIFTH THIRD BANK,
 as a
Lender
	 	
					
		 		 	By:	 	 /s/ Michael H. Keith
	 	
		 		 	Name: Michael H. Keith	 	
		 		 	Title: Vice President	 	
			
		 		 	 THE NORTHERN TRUST COMPANY,
 as a
Lender

					
		 		 	By:	 	 /s/ John Canty
	 	
		 		 	Name: John Canty	 	
		 		 	Title: Senior Vice President	 	
			
		 		 	 HSBC BANK USA, N.A.,
 as a
Lender

					
		 		 	By:	 	 /s/ Brian B. Myers
	 	
		 		 	Name: Brian B. Myers	 	
		 		 	Title: SVP Corporate Banking	 	
				
		 		 	 BNP PARIBAS,
 as a Lender and L/C
Issuer
	 	
					
		 		 	By:	 	 /s/ Nicholas Rogers
	 	
		 		 	Name: Nicholas Rogers	 	
		 		 	Title: Managing Director	 	
					
		 		 	By:	 	 /s/ Todd Rodgers
	 	
		 		 	Name: Todd Rodgers	 	
		 		 	Title: Director	 	

									
		 		 	FIRST HAWAIIAN BANK,	 	
		 		 	as a Lender	 	
					
		 		 	By:	 	 /s/ Todd T. Nitta
	 	
		 		 	Name: Todd T. Nitta	 	
		 		 	Title: Senior Vice President	 	
			
	EXITING LENDER:	 		 	THE ROYAL BANK OF SCOTLAND PLC,
		 		 	as a Lender	 	
					
		 		 	By:	 	 /s/ Tyler J. McCarthy
	 	
		 		 	Name: Tyler J. McCarthy	 	
		 		 	Title: Director

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00250-of-00352.parquet"}]]