Document:

Exhibit 4.7

          

        

  

  

   
    

   

    

  FORM OF ASSET REPRESENTATIONS REVIEW AGREEMENT

  

  

  among

  

  

  TOYOTA AUTO RECEIVABLES 2019-B OWNER TRUST,

      as Issuer,

  

  

  TOYOTA MOTOR CREDIT CORPORATION,

      as Servicer and Administrator,

  

  

  and

  

  

  CLAYTON FIXED INCOME SERVICES LLC,

      as Asset Representations Reviewer

  

  

  Dated as of May 8, 2019

   

    

   
    
 

  

  

  

  

  

  

  
    
      

  

  
  TABLE OF CONTENTS

  	
          ARTICLE I

           

        	
          USAGE AND DEFINITIONS

           

        	
          1

        
	
          Section 1.1.

        	
          Usage and Definitions

        	
          1

        
	
          Section 1.2.

           

            

        	
          Additional Definitions

        	
          1

        
	
          ARTICLE II

           

        	
          ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

           

        	
          2

        
	
          Section 2.1.

        	
          Engagement; Acceptance

        	
          2

        
	
          Section 2.2.

           

            

        	
          Confirmation of Status

        	
          2

        
	
          ARTICLE III

           

        	
          ASSET REPRESENTATIONS REVIEW PROCESS

           

        	
          3

        
	
          Section 3.1.

        	
          Review Notice and Identification of Review Receivables

        	
          3

        
	
          Section 3.2.

        	
          Review Materials

        	
          3

        
	
          Section 3.3.

        	
          Performance of Reviews

        	
          3

        
	
          Section 3.4.

        	
          Review Reports

        	
          4

        
	
          Section 3.5.

        	
          Review Representatives

        	
          5

        
	
          Section 3.6.

        	
          Dispute Resolution

        	
          5

        
	
          Section 3.7.

           

            

        	
          Limitations on Review Obligations

        	
          5

        
	
          ARTICLE IV

           

        	
          ASSET REPRESENTATIONS REVIEWER

           

        	
          6

        
	
          Section 4.1.

        	
          Representations and Warranties

        	
          6

        
	
          Section 4.2.

        	
          Covenants

        	
          7

        
	
          Section 4.3.

        	
          Fees and Expenses

        	
          7

        
	
          Section 4.4.

        	
          Limitation on Liability

        	
          8

        
	
          Section 4.5.

        	
          Indemnification by Asset Representations Reviewer

        	
          9

        
	
          Section 4.6.

        	
          Indemnification of Asset Representations Reviewer

        	
          9

        
	
          Section 4.7.

        	
          Inspections of Asset Representations Reviewer

        	
          10

        
	
          Section 4.8.

        	
          Delegation of Obligations

        	
          10

        
	
          Section 4.9.

        	
          Confidential Information

        	
          10

        
	
          Section 4.10.

           

            

        	
          Personally Identifiable Information

        	
          12

        
	
          ARTICLE V

           

        	
          RESIGNATION AND REMOVAL; SUCCESSOR ASSET REPRESENTATIONS REVIEWER

           

        	
          14

        
	
          Section 5.1.

        	
          Eligibility Requirements for Asset Representations Reviewer

        	
          14

        
	
          Section 5.2.

        	
          Resignation and Removal of Asset Representations Reviewer

        	
          14

        
	
          Section 5.3.

        	
          Successor Asset Representations Reviewer

        	
          15

        
	
          Section 5.4.

           

            

        	
          Merger, Consolidation or Succession

        	
          15

        
	
          ARTICLE VI

           

        	
          OTHER AGREEMENTS

           

        	
          15

        
	
          Section 6.1.

        	
          Independence of Asset Representations Reviewer

        	
          15

        
	
          Section 6.2.

        	
          No Petition

        	
          16

        
	
          Section 6.3.

        	
          Limitation of Liability of Owner Trustee

        	
          16

        
	
          Section 6.4.

           

            

        	
          Termination of Agreement

        	
          16

        
	
          ARTICLE VII

           

        	
          MISCELLANEOUS PROVISIONS

           

        	
          16

        
	
          Section 7.1.

        	
          Amendments

        	
          16

        
	
          Section 7.2.

        	
          Assignment; Benefit of Agreement; Third Party Beneficiaries

        	
          17

        

  

  

  
    i

    
      

  

  

  

  

  

  	
          Section 7.3.

        	
          Notices

        	
          17

        
	
          Section 7.4.

        	
          GOVERNING LAW

        	
          17

        
	
          Section 7.5.

        	
          WAIVER OF JURY TRIAL

        	
          17

        
	
          Section 7.6.

        	
          No Waiver; Remedies

        	
          18

        
	
          Section 7.7.

        	
          Severability

        	
          18

        
	
          Section 7.8.

        	
          Headings

        	
          18

        
	
          Section 7.9.

        	
          Counterparts

        	
          18

        
	
           

          Schedule A – Review Materials

        	 
	
          Schedule B – Representations, Warranties and Tests

           	 

  

  

  
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  ASSET REPRESENTATIONS REVIEW AGREEMENT, dated as of May 8, 2019 (this “Agreement”), among TOYOTA AUTO RECEIVABLES 2019-B OWNER TRUST, a Delaware statutory trust (the “Issuer”), TOYOTA MOTOR CREDIT
      CORPORATION, a California corporation (“TMCC”), as servicer (in such capacity, the “Servicer”)
      and administrator (in such capacity, the “Administrator”), and CLAYTON FIXED INCOME SERVICES LLC, a Delaware limited liability company (the “Asset Representations Reviewer”).

  WITNESSETH

  WHEREAS, the Issuer desires to engage the Asset Representations Reviewer to perform reviews of certain Receivables
      for compliance with certain representations and warranties made with respect thereto; and

  WHEREAS, the Asset Representations Reviewer desires to perform such reviews of Receivables in accordance with the
      terms of this Agreement.

  NOW, THEREFORE, in consideration of the mutual agreements herein contained and other good and valuable consideration,
      the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound hereby, agree as follows:

  ARTICLE I

      USAGE AND DEFINITIONS

  Section 1.1.      Usage and Definitions.  Capitalized terms used but not defined in this Agreement shall have the meanings ascribed to such terms in the Sale and Servicing Agreement.

  Section 1.2.      Additional Definitions.  The following terms have the meanings given below:

  “Annual Fee” has the meaning stated in
      Section 4.3(a).

  “Annual Period” has the meaning stated
      in Section 4.3(e).

  “Confidential Information” has the
      meaning stated in Section 4.9(b).

  “Contract” means, with respect to any
      Receivable, the original tangible record constituting or forming a part of such Receivable, or a copy or image of such original tangible record, together with (and as modified by) any correction notice issued by the Servicer to the related Obligor
      with respect thereto.

  “Information Recipients” has the meaning
      stated in Section 4.9(a).

  “Indemnified Parties” has the meaning
      stated in Section 4.6(a).

  “Indenture” means the Indenture, dated as of May 8, 2019,
      between the Issuer and the Indenture Trustee, as the same may be amended, supplemented or modified from time to time.

  

  

  
    
      

  

  
  

  

  “Indenture Trustee” means U.S. Bank
      National Association, as indenture trustee under the Indenture, and any successor thereto.

  “Issuer PII” has the meaning stated in
      Section 4.10(a).

  “PII” has the meaning stated in Section
      4.10(a).

  “Review” means the performance by the
      Asset Representations Reviewer of the testing procedures for each Test and each Review Receivable according to Section 3.3.

  “Review Fee” has the meaning stated in
      Section 4.3(b).

  “Review Materials” means, for a Review
      and a Review Receivable, the documents and other materials listed in Schedule A.

  “Review Notice” means a notice delivered
      to the Asset Representations Reviewer by the Indenture Trustee pursuant to 12.02 of the Indenture.

  “Review Receivables” means those certain
      Receivables identified by the Servicer to the Asset Representations Reviewer following receipt of a Review Notice as not having been paid in full by the Obligor or purchased from the Issuer in accordance with the terms of the Basic Documents at or
      prior to the date of such Review Notice.

  “Review Report” means, for a Review, the
      report of the Asset Representations Reviewer as described in Section 3.4.

  “Sale and Servicing Agreement” means the
      Sale and Servicing Agreement, dated as of May 8, 2019, among the Issuer, the Seller and TMCC.

  “Test” has the meaning stated in Section
      3.3(a).

  “Test Complete” has the meaning stated
      in Section 3.3(c).

  “Test Fail” has the meaning stated in
      Section 3.3(a).

  “Test Pass” has the meaning stated in
      Section 3.3(a).

  ARTICLE II

      ENGAGEMENT OF ASSET REPRESENTATIONS REVIEWER

  Section 2.1.      Engagement; Acceptance.  The Issuer hereby engages Clayton Fixed Income Services LLC to act as the Asset Representations Reviewer for the Issuer.  Clayton Fixed Income Services
      LLC hereby accepts the engagement and agrees to perform the obligations of the Asset Representations Reviewer on the terms set forth in this Agreement.

  Section 2.2.      Confirmation of Status.  The parties confirm that the Asset Representations Reviewer is not responsible for (a) reviewing the Receivables for compliance with the representations
      and warranties under the Basic Documents, except as described in this

  
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  Agreement, or (b) determining whether noncompliance with the representations or warranties constitutes a breach of the Basic Documents.

  ARTICLE III

      ASSET REPRESENTATIONS REVIEW PROCESS

  Section 3.1.      Review Notice and Identification of Review Receivables.  Within ten (10) Business Days after delivery of a Review Notice to the Asset Representations Reviewer, the Servicer will
      deliver a list of the Review Receivables to the Asset Representations Reviewer.  Upon receipt of a Review Notice and the related list of Review Receivables from the Servicer, the Asset Representations Reviewer will start a Review.  Delivery of any
      Review Notice shall be made pursuant to Section 10.03 of the Sale and Servicing Agreement.

  Section 3.2.      Review Materials.

  (a)      Access to Review Materials.  Within sixty (60) days of the delivery of a Review Notice to the Asset Representations Reviewer, the Servicer will give the Asset Representations
      Reviewer access to the Review Materials for all of the Review Receivables in one or more of the following ways, to be determined in the sole discretion of the Servicer: (i) by providing access to the Servicer’s receivables systems, either remotely or
      at an office of the Servicer, (ii) by electronic posting to a password-protected website to which the Asset Representations Reviewer has access, (iii) by providing scanned copies at an office of the Servicer where the Review Materials are located or
      (iv) in another manner agreed to between the Servicer and the Asset Representations Reviewer.  The Servicer may redact or remove PII from the Review Materials, but will use commercially reasonable efforts not to change the meaning or usefulness of
      the Review Materials for the Review.

  (b)      Missing or Insufficient Review Materials.  The Asset Representations Reviewer will review the Review Materials to determine if any Review Materials are missing or insufficient
      for the Asset Representations Reviewer to perform any Test.  If the Asset Representations Reviewer determines that there are missing or insufficient Review Materials, the Asset Representations Reviewer will notify the Servicer and the Administrator
      promptly, and in any event no less than twenty (20) Business Days before completing the Review.  The Servicer will have fifteen (15) Business Days to give the Asset Representations Reviewer access to the missing Review Materials or other documents or
      information to correct any such insufficiency.  If the missing or insufficient Review Materials or other documents or information have not been provided by the Servicer within such fifteen (15) Business Day period, the related Review Report will
      report a Test Fail for each Test in respect of which such missing or insufficient Review Materials is necessary to determine whether a Test Pass result is appropriate.

  Section 3.3.      Performance of Reviews.

  (a)      Test Procedures.  For a Review, the Asset Representations Reviewer will perform, for each Review Receivable, the procedures listed under “Tests” in Schedule B for each
      representation and warranty (each, a “Test”), using the Review Materials necessary to perform the procedures described for such Test in Schedule B.  For each Test and Review
      Receivable, the

  
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  Asset Representations Reviewer will determine if the Test has been satisfied (a “Test Pass”) or if the Test has not been satisfied (a “Test Fail”).

  (b)      Review Period.  The Asset Representations Reviewer will complete the Review of all of the Review Receivables within sixty (60) days after having received access to the Review
      Materials pursuant to Section 3.2(a).  However, if additional Review Materials are provided to the Asset Representations Reviewer in respect of any Review Receivables pursuant to Section 3.2(b), the Review period will be extended for an additional
      thirty (30) days in respect of any such Review Receivables.

  (c)      Completion of Review for Certain Review Receivables.  Following the delivery of the list of the Review Receivables and before the delivery of the Review Report by the Asset
      Representations Reviewer, the Servicer may notify the Asset Representations Reviewer if a Review Receivable is paid in full by the Obligor or purchased from the Issuer in accordance with the terms of the Basic Documents.  On receipt of such notice,
      the Asset Representations Reviewer will immediately terminate all Tests of the related Review Receivable, and the Review of such Review Receivables will be considered complete (a “Test
          Complete”).  In this case, the related Review Report will indicate a Test Complete for such Review Receivable and the related reason.

  (d)      Previously Reviewed Receivable; Duplicative Tests.  If any Review Receivable was included in a prior Review, the Asset Representations Reviewer will not conduct additional Tests
      on such Review Receivable, but will include the previously reported Test results in the Review Report for the current Review.  If the same Test is required for more than one representation and warranty, the Asset Representations Reviewer will only
      perform the Test once for each Review Receivable, but will report the results of the Test for each applicable representation and warranty on the Review Report.

  (e)      Termination of Review.  If a Review is in process and the Notes will be paid in full on the next Payment Date, the Servicer or the Administrator will notify the Asset
      Representations Reviewer no less than ten (10) days before that Payment Date.  On receipt of such notice, the Asset Representations Reviewer will terminate the Review immediately and will not be obligated to deliver a Review Report.

  Section 3.4.      Review Reports.  Within five (5) days after the end of the applicable Review period under Section 3.3(b), the Asset Representations Reviewer will deliver to the Issuer, the
      Servicer, the Depositor, the Administrator and the Indenture Trustee a Review Report indicating for each Review Receivable whether there was a Test Pass, Test Fail or Test Complete for each related Test.  For each Test Fail or Test Complete, the
      Review Report will indicate the related reason, including (for example) whether the Review Receivable was a Test Fail as a result of missing or incomplete Review Materials.  The Review Report will contain a summary of the Review results to be
      included in the Issuer’s Form 10-D report for the Collection Period in which the Review Report is received.  The Asset Representations Reviewer will ensure that the Review Report does not contain any PII.  On reasonable request of the Servicer or the
      Administrator, the Asset Representations Reviewer will provide additional details on the Test results.

  
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  Section 3.5.      Review Representatives.

  (a)      Servicer Representative.  The Servicer will designate one or more representatives who will be available to assist the Asset Representations Reviewer in performing the Review,
      including responding to requests and answering questions from the Asset Representations Reviewer about access to Review Materials on the Servicer’s originations, receivables or other systems, obtaining missing or insufficient Review Materials and/or
      providing clarification of any Review Materials or Tests.

  (b)      Asset Representations Reviewer Representative.  The Asset Representations Reviewer will designate one or more representatives who will be available to the Issuer, the Servicer
      and the Administrator during the performance of a Review.

  (c)      Questions About Review.  The Asset Representations Reviewer will make appropriate personnel available to respond in writing to written questions or requests for clarification of
      any Review Report from the Indenture Trustee, the Servicer or the Administrator until the earlier of (i) the payment in full of the Notes and (ii) two years after the delivery of the Review Report.  The Asset Representations Reviewer will not be
      obligated to respond to questions or requests for clarification from Noteholders or any other Person and will direct such Persons, and the Indenture Trustee will direct the Noteholders, to submit written questions or requests to the Servicer.

  Section 3.6.      Dispute Resolution.  If a Review Receivable that was the subject of a Review becomes the subject of a dispute resolution proceeding under Section 11.02 of the Sale and Servicing
      Agreement, the Asset Representations Reviewer will participate in the dispute resolution proceeding on request of a party to the proceeding.  The reasonable out-of-pocket expenses of the Asset Representations Reviewer for its participation in any
      dispute resolution proceeding will be considered expenses of the requesting party for the dispute resolution and will be paid by a party to the dispute resolution as determined by the mediator or arbitrator for the dispute resolution according to
      Section 11.02 of the Sale and Servicing Agreement.  If not paid by a party to the dispute resolution, the expenses will be reimbursed by the Issuer according to Section 4.3(d) of this Agreement.

  Section 3.7.      Limitations on Review Obligations.

  (a)      Review Process Limitations.  The Asset Representations Reviewer will have no obligation: (i) to determine whether a Delinquency Trigger has occurred or whether the required
      percentage of Noteholders has voted to direct a Review under the Indenture; (ii) to determine which Receivables are the subject of a Review; (iii) to obtain or confirm the validity of the Review Materials; (iv) to obtain missing or insufficient
      Review Materials; (v) to take any action or cause any other party to take any action under any of the Basic Documents to enforce any remedies for breaches of representations or warranties; or (vi) to establish cause, materiality or recourse for any
      Test Fail as described in Section 3.3.

  (b)      Testing Procedure Limitations.  The Asset Representations Reviewer will only be required to perform the “Tests” described in Schedule B, and will not be obligated to perform
      additional procedures on any Review Receivable other than as specified in this Agreement.

  
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  However, the Asset Representations Reviewer may, in its discretion, (i) perform other tests that it deems reasonable and appropriate in
      determining whether the Review Receivables were in compliance with the representations and warranties made by TMCC and the Seller about the Review Receivables in the Basic Documents as of the Cutoff Date or Closing Date, as applicable, and (ii)
      provide additional information about any Review Receivable that it determines in good faith to be material to the related Review.

  ARTICLE IV

      ASSET REPRESENTATIONS REVIEWER

  Section 4.1.      Representations and Warranties.  The Asset Representations Reviewer represents and warrants to the Issuer as of the Closing Date:

  (a)      Organization and Qualification.  The Asset Representations Reviewer is duly organized and validly existing as a limited liability company in good standing under the laws of
      State of Delaware.  The Asset Representations Reviewer is qualified as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties
      or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Asset Representations
      Reviewer’s ability to perform its obligations under this Agreement.

  (b)      Power, Authority and Enforceability.  The Asset Representations Reviewer has the power and authority to execute, deliver and perform its obligations under this Agreement.  The
      Asset Representations Reviewer has authorized the execution, delivery and performance of this Agreement.  This Agreement is the legal, valid and binding obligation of the Asset Representations Reviewer enforceable against the Asset Representations
      Reviewer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

  (c)      No Conflicts and No Violation.  The completion of the transactions  contemplated by this Agreement and the performance of the Asset Representations Reviewer’s obligations under
      this Agreement will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Asset Representations Reviewer is a debtor or guarantor, (ii) result in
      the creation or imposition of a Lien on the properties or assets of the Asset Representations Reviewer under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document, (iii) violate the organizational
      documents of the Asset Representations Reviewer or (iv) violate a law or, to the Asset Representations Reviewer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental
      instrumentality having jurisdiction over the Asset Representations Reviewer or its properties that applies to the Asset Representations Reviewer, which, in each case, would reasonably be expected to have a material adverse effect on the Asset
      Representations Reviewer’s ability to perform its obligations under this Agreement.

  (d)      No Proceedings.  To the Asset Representations Reviewer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court,

  
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  regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Asset Representations Reviewer
      or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the completion of the transactions contemplated by this Agreement or (iii) seeking any determination or ruling that would reasonably be expected to have a
      material adverse effect on the Asset Representations Reviewer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement.

  (e)      Eligibility.  The Asset Representations Reviewer meets the eligibility requirements in Section 5.1.

  Section 4.2.      Covenants.  The Asset Representations Reviewer covenants and agrees that:

  (a)      Eligibility.  It will notify the Issuer, the Servicer and the Administrator promptly if it no longer meets, or reasonably expects that it will no longer meet, the eligibility
      requirements in Section 5.1.

  (b)      Review Systems; Personnel.  It will maintain business process management and/or other systems necessary to ensure that it can perform each Test and, on execution of this
      Agreement, will load each Test into these systems. The Asset Representations Reviewer will ensure that these systems allow for each Review Receivable and the related Review Materials to be individually tracked and stored as contemplated by this
      Agreement.  The Asset Representations Reviewer will maintain adequate staff that is properly trained to conduct Reviews as required by this Agreement.

  (c)      Maintenance of Review Materials.  It will maintain copies of any Review Materials, Review Reports and other documents relating to a Review, including internal correspondence and
      work papers, for a period of at least two years after any termination of this Agreement.

  (d)      Compliance with Applicable Law.  The Asset Representations Reviewer will act in accordance with all requirements applicable to an asset representations reviewer under applicable
      law (as amended from time to time) and other state or federal securities law applicable to asset representations reviewers in effect during the term of this Agreement.

  Section 4.3.      Fees and Expenses.

  (a)      Annual Fee.  As compensation for its activities hereunder, the Asset Representations Reviewer shall be entitled to receive an annual fee (the “Annual Fee”) with respect to each Annual Period prior to the termination of the Issuer, in an amount equal to $5,000.

  (b)      Review Fee.  Following the completion of a Review and the delivery of the related Review Report pursuant to Section 3.4, or the termination of a Review according to Section
      3.3(e), and the delivery to the Issuer, the Indenture Trustee, the Servicer and the Administrator of a detailed invoice in respect thereof, the Asset Representations Reviewer will be entitled to a fee of $200 for each Review Receivable for which the
      Review was started (the “Review Fee”).  However, no Review Fee will be charged for any Review Receivable which was

  
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  included in a prior Review or for which no Tests were completed prior to the Asset Representations Reviewer being notified of a
      termination of the Review according to Section 3.3(e) or due to missing or insufficient Review Materials under Section 3.2(b).

  (c)      Reimbursement of Travel Expenses.  If the Servicer provides access to the Review Materials at one of its properties, the Issuer will reimburse the Asset Representations Reviewer
      for its reasonable travel expenses incurred in connection with the Review, following the delivery to the Issuer, the Indenture Trustee, the Servicer and the Administrator of a detailed invoice in respect of such expenses; provided that such
      reimbursable expenses may not exceed $20,000.

  (d)      Dispute Resolution Expenses.  If the Asset Representations Reviewer participates in a dispute resolution proceeding under Section 3.6 of this Agreement and its reasonable
      out-of-pocket expenses for participating in the proceeding are not paid by a party to the dispute resolution within ninety (90) days after the end of the proceeding, the Issuer will reimburse the Asset Representations Reviewer for such expenses after
      receipt of a detailed invoice in respect thereof.

  (e)      Method of Payment.  The initial Annual Fee will become due and payable by TMCC within thirty (30) days of receipt by TMCC of an invoice in respect thereof.  Each other Annual
      Fee, and the amount of any properly invoiced fees, expenses or claims (including any Review Fee) to be reimbursed or paid by the Issuer pursuant to the terms of this Agreement, will become due and payable by the Issuer on the next Payment Date
      occurring at least five (5) Business Days after receipt by the Servicer of the related invoice from the Asset Representations Reviewer, in each case in accordance with the priority of payments set forth in Section 5.06(b) or (c) of the Sale and
      Servicing Agreement, as applicable; provided that, (i) Annual Fees (other than the initial Annual Fee) will not be payable by the Issuer prior to the Payment Date immediately following the end of each annual period occurring on the anniversary of the
      Closing Date (each such period, an “Annual Period”), and (ii) the Asset Representations Reviewer must submit its invoice for any outstanding fees, expenses or claims not
      later than ten (10) Business Days before the final Payment Date.  The Servicer shall provide notice to the Asset Representations Reviewer of the final Payment Date at least fifteen (15) Business Days prior to such Payment Date.  In the event that any
      such properly invoiced fees, expenses or claims are not paid or reimbursed in full by the Issuer on the related Payment Date, TMCC shall promptly pay the Asset Representations Reviewer for any such unpaid amounts.  If, subsequent to any such payment
      by TMCC to the Asset Representations Reviewer described in the immediately preceding sentence, the Asset Representations Reviewer receives payment or reimbursement in respect of the related fee, expense or claim, in part or in full, from the Issuer,
      then the Asset Representations Reviewer shall promptly refund TMCC for the amount of such payment or reimbursement received from the Issuer on such subsequent date.

  Section 4.4.      Limitation on Liability.  The Asset Representations Reviewer will not be liable to any Person for any action taken, or not taken, in good faith under this Agreement or for
      errors in judgment.  However, the Asset Representations Reviewer will be liable for its willful misconduct, bad faith or negligence in performing its obligations under this Agreement.  In no event will the Asset Representations Reviewer be liable for
      special, indirect or consequential

  
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  losses or damages (including lost profit), even if the Asset Representations Reviewer has been advised of the likelihood of the loss or
      damage and regardless of the form of action.

  Section 4.5.      Indemnification by Asset Representations Reviewer .  The Asset Representations Reviewer will indemnify each of the Issuer, the Seller, the Servicer, the Administrator, the
      Owner Trustee and the Indenture Trustee and their respective directors, officers, employees and agents for all fees, expenses, losses, damages and liabilities (including, but not limited to, reasonable legal fees, costs and expenses, and including
      any such reasonable fees, costs and expenses incurred in connection with any enforcement (including any action, claim, or suit brought by such indemnified parties) of any indemnification or other obligation of the Asset Representations Reviewer)
      resulting from (a) the willful misconduct, bad faith or negligence of the Asset Representations Reviewer in performing its obligations under this Agreement and (b) the Asset Representations Reviewer’s breach of any of its representations or
      warranties in this Agreement.  The Asset Representations Reviewer’s obligations under this Section 4.5 will survive the termination of this Agreement, the termination of the Issuer and the resignation or removal of the Asset Representations Reviewer.

  Section 4.6.      Indemnification of Asset Representations Reviewer.

  (a)      Indemnification.  The Issuer will indemnify the Asset Representations Reviewer and its officers, directors, employees and agents (each, an “Indemnified Person”), for all costs, expenses, losses, damages and liabilities resulting from the performance of its obligations under this Agreement (including the fees and expenses of defending
      itself against any loss, damage or liability), but excluding any cost, expense, loss, damage or liability resulting from (i) the Asset Representations Reviewer’s willful misconduct, bad faith or negligence or (ii) the Asset Representations Reviewer’s
      breach of any of its representations or warranties in this Agreement.

  (b)      Proceedings.  Promptly on receipt by an Indemnified Person of notice of a Proceeding against it, the Indemnified Person will, if a claim is to be made under Section 4.6(a),
      notify the Issuer, the Servicer and the Administrator of the Proceeding.  The Issuer, the Servicer and the Administrator may participate in and assume the defense and settlement of a Proceeding at its expense.  If the Issuer, the Servicer or the
      Administrator notifies the Indemnified Person of its intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Issuer, the Servicer or the Administrator assumes the defense of
      the Proceeding in a manner reasonably satisfactory to the Indemnified Person, the Issuer, the Servicer and the Administrator will not be liable for fees and expenses of counsel to the Indemnified Person unless there is a conflict between the
      interests of the Issuer, the Servicer or the Administrator, as applicable, and an Indemnified Person.  If there is a conflict, the Issuer, the Servicer or the Administrator will pay for the reasonable fees and expenses of separate counsel to the
      Indemnified Person.  No settlement of a Proceeding may be made without the approval of the Issuer, the Servicer and the Administrator and the Indemnified Person, which approval will not be unreasonably withheld, conditioned or delayed.

  (c)      Survival of Obligations.  The Issuer’s, the Servicer’s and the Administrator’s obligations under this Section 4.6 will survive the resignation or removal of the Asset
      Representations Reviewer and the termination of this Agreement.

  
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  (d)      Repayment.  If the Issuer, the Servicer or the Administrator makes any payment under this Section 4.6 and the Indemnified Person later collects any of the amounts for which the
      payments were made to it from others, the Indemnified Person will promptly repay the amounts to the Issuer, the Servicer or the Administrator, as applicable.

  Section 4.7.      Inspections of Asset Representations Reviewer.  The Asset Representations Reviewer agrees that, with reasonable prior notice not more than once during any year, it will permit
      authorized representatives of the Issuer, the Servicer and the Administrator, during the Asset Representations Reviewer’s normal business hours, to examine and review the books of account, records, reports and other documents and materials of the
      Asset Representations Reviewer relating to (a) the performance of the Asset Representations Reviewer’s obligations under this Agreement, (b) payments of fees and expenses of the Asset Representations Reviewer for its performance and (c) a claim made
      by the Asset Representations Reviewer under this Agreement.  In addition, the Asset Representations Reviewer will permit the Issuer’s, the Servicer’s and the Administrator’s representatives to make copies and extracts of any of those documents and to
      discuss them with the Asset Representations Reviewer’s officers and employees.  Each of the Issuer, the Servicer and the Administrator will, and will cause its authorized representatives to, hold in confidence the information except if disclosure may
      be required by law or if the Issuer, the Servicer or the Administrator reasonably determines that it is required to make the disclosure under this Agreement or the other Basic Documents.  The Asset Representations Reviewer will maintain all relevant
      books, records, reports and other documents and materials for a period of at least two years after the termination of its obligations under this Agreement.

  Section 4.8.      Delegation of Obligations.  The Asset Representations Reviewer may not delegate or subcontract its obligations under this Agreement to any Person without the consent of the
      Issuer, the Servicer and the Administrator.

  Section 4.9.      Confidential Information.

  (a)      Treatment.  The Asset Representations Reviewer agrees to hold and treat Confidential Information given to it under this Agreement in confidence and under the terms and
      conditions of this Section 4.9, and will implement and maintain safeguards to further assure the confidentiality of the Confidential Information.  The Confidential Information will not, without the prior consent of the Issuer, the Servicer and the
      Administrator, be disclosed or used by the Asset Representations Reviewer, or its officers, directors, employees, agents, representatives or affiliates, including legal counsel (collectively, the “Information Recipients”) other than for the purposes of performing Reviews of Review Receivables or performing its obligations under this Agreement.  The Asset Representations Reviewer agrees that it will not, and will cause
      its Affiliates to not (i) purchase or sell securities issued by TMCC, the Issuer or any of their respective Affiliates or special purpose entities formed by any of the foregoing Persons on the basis of Confidential Information or (ii) use the
      Confidential Information for the preparation of research reports, newsletters or other publications or similar communications.

  (b)      Definition.  “Confidential Information” means oral, written and electronic materials (irrespective
      of its source or form of communication) furnished before, on or after the

  
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  date of this Agreement to the Asset Representations Reviewer for the purposes contemplated by this Agreement, including:

  (i)      lists

      of Review Receivables and any related Review Materials;

  (ii)      origination

      and servicing guidelines, policies and procedures, and form contracts; and

  (iii)      notes,

      analyses, compilations, studies or other documents or records prepared by the Servicer or the Administrator, which contain information supplied by or on behalf of the Servicer, the Administrator or their respective representatives.

  However, Confidential Information will not include information that (A) is or becomes generally available to the public other than as a
      result of disclosure by the Information Recipients, (B) was available to, or becomes available to, the Information Recipients on a non-confidential basis from a Person or entity other than the Issuer, the Servicer or the Administrator before its
      disclosure to the Information Recipients who, to the knowledge of the Information Recipient is not bound by a confidentiality agreement with the Issuer, the Servicer or the Administrator and is not prohibited from transmitting the information to the
      Information Recipients, (C) is independently developed by the Information Recipients without the use of the Confidential Information, as shown by the Information Recipients’ files and records or other evidence in the Information Recipients’
      possession or (D) the Issuer, the Servicer or the Administrator provides permission to the applicable Information Recipients to release.

  (c)      Protection.  The Asset Representations Reviewer will take reasonable measures to protect the secrecy of and avoid disclosure and unauthorized use of Confidential Information,
      including those measures that it takes to protect its own confidential information and not less than a reasonable standard of care.  The Asset Representations Reviewer acknowledges that PII is also subject to the additional requirements in Section
      4.10.

  (d)      Disclosure.  If the Asset Representations Reviewer is required by applicable law, regulation, rule or order issued by an administrative, governmental, regulatory or judicial
      authority to disclose part of the Confidential Information, it may disclose the Confidential Information.  However, before a required disclosure, the Asset Representations Reviewer, if permitted by law, regulation, rule or order, will use its
      reasonable efforts to provide the Issuer, the Servicer and the Administrator with notice of the requirement and will cooperate, at the Issuer’s or the Servicer’s expense, as applicable, in the Issuer’s or the Servicer’s pursuit of a proper protective
      order or other relief for the disclosure of the Confidential Information.  If the Issuer or the Servicer is unable to obtain a protective order or other proper remedy by the date that the information is required to be disclosed, the Asset
      Representations Reviewer will disclose only that part of the Confidential Information that it is advised by its legal counsel it is legally required to disclose.

  (e)      Responsibility for Information Recipients.  The Asset Representations Reviewer will be responsible for a breach of this Section 4.9 by its Information Recipients.

  (f)      Violation.  The Asset Representations Reviewer agrees that a violation of this Agreement may cause irreparable injury to the Issuer, the Servicer and the Administrator, and the

  
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  Issuer, the Servicer and the Administrator may seek injunctive relief in addition to legal remedies.  If an action is initiated by the
      Issuer, the Servicer or the Administrator to enforce this Section 4.9, the prevailing party will be reimbursed for its fees and expenses, including reasonable attorney’s fees, incurred for the enforcement.

  Section 4.10.      Personally Identifiable Information.

  (a)      Definitions.  “PII” means information in any format about an identifiable individual, including,
      name, address, phone number, e-mail address, account number(s), identification number(s), any other actual or assigned attribute associated with or identifiable to an individual and any information that when used separately or in combination with
      other information could identify an individual.  “Issuer PII” means PII furnished by the Issuer, the Servicer, the Administrator or their respective Affiliates to the Asset
      Representations Reviewer and PII developed or otherwise collected or acquired by the Asset Representations Reviewer in performing its obligations under this Agreement.

  (b)      Use of Issuer PII.  The Issuer does not grant the Asset Representations Reviewer any rights to Issuer PII except as provided in this Agreement.  The Asset Representations
      Reviewer will use Issuer PII only to perform its obligations under this Agreement or as specifically directed in writing by the Issuer and will only reproduce Issuer PII to the extent necessary for these purposes.  The Asset Representations Reviewer
      must comply with all laws applicable to PII, Issuer PII and the Asset Representations Reviewer’s business, including any legally required codes of conduct, including those relating to privacy, security and data protection.  The Asset Representations
      Reviewer will protect and secure Issuer PII.  The Asset Representations Reviewer will implement privacy or data protection policies and procedures that comply with applicable law and this Agreement.  The Asset Representations Reviewer will implement
      and maintain reasonable and appropriate practices, procedures and systems, including administrative, technical and physical safeguards to (i) protect the security, confidentiality and integrity of Issuer PII, (ii) ensure against anticipated threats
      or hazards to the security or integrity of Issuer PII, (iii) protect against unauthorized access to or use of Issuer PII and (iv) otherwise comply with its obligations under this Agreement.  These safeguards include a written data security plan,
      employee training, information access controls, restricted disclosures, systems protections (e.g., intrusion protection, data storage protection and data transmission protection) and physical security measures.

  (c)      Additional Limitations.  In addition to the use and protection requirements described in Section 4.10(b), the Asset Representations Reviewer’s disclosure of Issuer PII is also
      subject to the following requirements:

  (i)      The

      Asset Representations Reviewer will not disclose Issuer PII to its personnel or allow its personnel access to Issuer PII except (A) for the Asset Representations Reviewer personnel who require Issuer PII to perform a Review, (B) with the prior
      consent of the Issuer or (C) as required by applicable law.  When permitted, the disclosure of or access to Issuer PII will be limited to the specific information necessary for the individual to complete the assigned task.  The Asset Representations
      Reviewer will inform personnel with access to Issuer PII of the

  
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  confidentiality requirements in this Agreement and train its personnel with access to Issuer PII on the proper use
      and protection of Issuer PII.

  (ii)      The

      Asset Representations Reviewer will not sell, disclose, provide or exchange Issuer PII with or to any third party without the prior consent of the Issuer.

  (iii)      Notwithstanding

      anything to the contrary contained in this Agreement, the Asset Representations Reviewer’s use and handling of Issuer PII shall also be subject to the terms and limitations described in that separate letter agreement between TMCC and the Asset
      Representations Reviewer dated October 22, 2015 (the “Letter Agreement”) and, in the event of any conflict between the terms of the Letter Agreement and the terms of this
      Agreement related to the Asset Representations Reviewer’s use and handling of Issuer PII, the most restrictive of such terms shall govern.

  (d)      Notice of Breach.  The Asset Representations Reviewer will notify the Issuer, the Servicer and the Administrator promptly in the event of an actual or reasonably suspected
      security breach, unauthorized access, misappropriation or other compromise of the security, confidentiality or integrity of Issuer PII and, where applicable, immediately take action to prevent any further breach.

  (e)      Return or Disposal of Issuer PII.  Except where return or disposal is prohibited by applicable law, promptly on the earlier of the completion of the Review or the request of the
      Issuer, all Issuer PII in any medium in the Asset Representations Reviewer’s possession or under its control will be (i) destroyed in a manner that prevents its recovery or restoration or (ii) if so directed by the Issuer, returned to the Issuer
      without the Asset Representations Reviewer retaining any actual or recoverable copies, in both cases, without charge to the Issuer.  Where the Asset Representations Reviewer retains Issuer PII, the Asset Representations Reviewer will limit the Asset
      Representations Reviewer’s further use or disclosure of Issuer PII to that required by applicable law.

  (f)      Compliance; Modification.  The Asset Representations Reviewer will cooperate with and provide information to the Issuer, the Servicer and the Administrator regarding the Asset
      Representations Reviewer’s compliance with this Section 4.10.  The Asset Representations Reviewer, the Issuer, the Servicer and the Administrator agree to modify this Section 4.10 as necessary for any party to comply with applicable law.

  (g)      Audit of Asset Representations Reviewer.  The Asset Representations Reviewer will permit the Issuer, the Servicer and the Administrator and their authorized representatives to
      audit the Asset Representations Reviewer’s compliance with this Section 4.10 during the Asset Representations Reviewer’s normal business hours on reasonable advance notice to the Asset Representations Reviewer, and not more than once during any year
      unless circumstances necessitate additional audits.  The Issuer, the Servicer and the Administrator agree to make reasonable efforts to schedule any audit described in this Section 4.10 with the inspections described in Section 4.7.  The Asset
      Representations Reviewer will also permit the Issuer, the Servicer and the Administrator, during normal business hours on reasonable advance written notice, to audit any service providers used by the Asset Representations Reviewer to fulfill the
      Asset Representations Reviewer’s obligations under this Agreement.

  
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  (h)      Affiliates and Third Parties.  If the Asset Representations Reviewer processes the PII of the Issuer’s, the Servicer’s or the Administrator’s Affiliates or a third party when
      performing a Review, and if such Affiliate or third party is identified to the Asset Representations Reviewer, such Affiliate or third party is an intended third-party beneficiary of this Section 4.10, and this Agreement is intended to benefit the
      Affiliate or third party.  The Affiliate or third party may enforce the PII-related terms of this Section 4.10 against the Asset Representations Reviewer as if each were a signatory to this Agreement.

  ARTICLE V

      RESIGNATION AND REMOVAL;

      SUCCESSOR ASSET REPRESENTATIONS REVIEWER

  Section 5.1.      Eligibility Requirements for Asset Representations Reviewer.  The Asset Representations Reviewer must be a Person who (a) is not an Affiliate of TMCC, the Seller, the Issuer,
      the Servicer, the Administrator, the Indenture Trustee or the Owner Trustee and (b) is not an Affiliate of any Person that was engaged by TMCC or any underwriter of the Notes to perform any due diligence on the Receivables prior to the Closing Date.

  Section 5.2.      Resignation and Removal of Asset Representations Reviewer.

  (a)      No Resignation.  The Asset Representations Reviewer will not resign as Asset Representations Reviewer unless it determines it is legally unable to perform its obligations under
      this Agreement and there is no reasonable action that it could take to make the performance of its obligations under this Agreement permitted under applicable law.  In such event, the Asset Representations Reviewer will deliver a notice of its
      resignation to the Issuer, the Servicer and the Administrator, together with an Opinion of Counsel supporting its determination.

  (b)      Removal.  If any of the following events occur, the Issuer, by notice to the Asset Representations Reviewer, may remove the Asset Representations Reviewer and terminate its
      rights and obligations under this Agreement:

  (i)      the

      Asset Representations Reviewer no longer meets the eligibility requirements in Section 5.1;

  (ii)      the

      Asset Representations Reviewer breaches of any of its representations, warranties, covenants or obligations in this Agreement; or

  (iii)      an

      Insolvency Event of the Asset Representations Reviewer occurs.

  (c)      Notice of Resignation or Removal.  The Issuer will notify the Servicer, the Administrator, the Owner Trustee and the Indenture Trustee of any resignation or removal of the Asset
      Representations Reviewer.

  (d)      Continue to Perform After Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective, and the Asset Representations Reviewer will
      continue to perform its obligations under this Agreement, until a successor Asset Representations Reviewer has accepted its engagement according to Section 5.3(b).

  
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  Section 5.3.      Successor Asset Representations Reviewer .

  (a)      Engagement of Successor Asset Representations Reviewer.  Following the resignation or removal of the Asset Representations Reviewer, the Issuer will engage a successor Asset
      Representations Reviewer who meets the eligibility requirements of Section 5.1.

  (b)      Effectiveness of Resignation or Removal.  No resignation or removal of the Asset Representations Reviewer will be effective until the successor Asset Representations Reviewer
      has executed and delivered to the Issuer, the Servicer and the Administrator an agreement accepting its engagement and agreeing to perform the obligations of the Asset Representations Reviewer under this Agreement or entering into a new agreement
      with the Issuer on substantially the same terms as this Agreement.

  (c)      Transition and Expenses.  If the Asset Representations Reviewer resigns or is removed, the Asset Representations Reviewer will cooperate with the Issuer, the Servicer and the
      Administrator and take all actions reasonably requested to assist the Issuer in making an orderly transition of the Asset Representations Reviewer’s rights and obligations under this Agreement to the successor Asset Representations Reviewer.  The
      Asset Representations Reviewer will pay the reasonable expenses of transitioning the Asset Representations Reviewer’s obligations under this Agreement and preparing the successor Asset Representations Reviewer to take on the obligations on receipt of
      an invoice with reasonable detail of the expenses from the Issuer, the Servicer, the Administrator or the successor Asset Representations Reviewer. To the extent expenses incurred by the Asset Representations Reviewer in connection with the
      replacement of the Asset Representations Reviewer are not paid by the Asset Representations Reviewer that is being replaced, the Issuer will pay such expenses in accordance with the priority of payments set forth in Section 5.06(b) or (c) of the Sale
      and Servicing Agreement, as applicable.

  Section 5.4.      Merger, Consolidation or Succession.  Any Person (a) into which the Asset Representations Reviewer is merged or consolidated, (b) resulting from any merger or consolidation to
      which the Asset Representations Reviewer is a party or (c) succeeding to the business of the Asset Representations Reviewer, if that Person meets the eligibility requirements in Section 5.1, will be the successor to the Asset Representations Reviewer
      under this Agreement.  Such Person will execute and deliver to the Issuer, the Servicer and the Administrator an agreement to assume the Asset Representations Reviewer’s obligations under this Agreement (unless the assumption happens by operation of
      law).

  ARTICLE VI

      OTHER AGREEMENTS

  Section 6.1.      Independence of Asset Representations Reviewer.  The Asset Representations Reviewer will be an independent contractor and will not be subject to the supervision of the Issuer
      for the manner in which it accomplishes the performance of its obligations under this Agreement.  Unless authorized by the Issuer, the Servicer or the Administrator, the Asset Representations Reviewer will have no authority to act for or represent
      the Issuer, the Servicer or the Administrator, respectively, and will not be considered an agent of any such Person.  Nothing in this Agreement will make the Asset Representations Reviewer and

  
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  the Issuer, the Servicer or the Administrator members of any partnership, joint venture or other separate entity or impose any liability
      as such on any of them.

  Section 6.2.      No Petition.  Each of the parties agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after payment in full of all
      securities issued by the Seller, the Issuer or by a trust for which the Seller was a depositor, it will not start or pursue against, or join any other Person in starting or pursuing against the Seller or the Issuer, any bankruptcy, reorganization,
      arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 6.2 will survive the termination of this Agreement.

  Section 6.3.      Limitation of Liability of Owner Trustee.  This Agreement has been signed on behalf of the Issuer by Wilmington Trust, National Association, not in its individual capacity but
      solely in its capacity as Owner Trustee of the Issuer.  In no event will Wilmington Trust, National Association in its individual capacity or a beneficial owner of the Issuer be liable for the Issuer’s obligations under this Agreement.  For all
      purposes under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, the Trust Agreement.

  Section 6.4.      Termination of Agreement.  This Agreement will terminate, except for the obligations under Section 4.6, on the earlier of (a) the payment in full of all outstanding Notes and
      the satisfaction and discharge of the Indenture and (b) the date the Issuer is terminated under the Trust Agreement.

  ARTICLE VII

      MISCELLANEOUS PROVISIONS

  Section 7.1.      Amendments.  The parties may amend this Agreement:

  (i)      to
      clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this Agreement or to provide for, or facilitate the acceptance of this Agreement by, a successor
      Asset Representations Reviewer, in each case without the consent of the Noteholders or any other Person;

  (ii)      to

      add, change or eliminate terms of this Agreement, in each case without the consent of the Noteholders or any other Person, if the Administrator delivers an Officer’s Certificate to the Issuer, the Owner Trustee and the Indenture Trustee stating that
      the amendment will not have a material adverse effect on the Noteholders; or

  (iii)      to

      add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 7.1(ii), with the consent of a majority of the principal amount of the Notes of the Controlling Class then outstanding,
      acting together as a single class.

  
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  Section 7.2.      Assignment; Benefit of Agreement; Third Party Beneficiaries.

  (a)      Assignment.  Except as stated in Section 5.4, this Agreement may not be assigned by the Asset Representations Reviewer without the consent of the Issuer, the Servicer and the
      Administrator.

  (b)      Benefit of Agreement; Third-Party Beneficiaries.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Owner
      Trustee and the Indenture Trustee, for the benefit of the Noteholders, will be third-party beneficiaries of this Agreement and may enforce this Agreement against the Asset Representations Reviewer, the Servicer and the Administrator.  No other Person
      will have any right or obligation under this Agreement.

  Section 7.3.      Notices.

  (a)      Notices to Parties.  All notices, requests, demands, consents, waivers or other communications to or from the parties must be in writing and will be considered given:

  (i)      for

      overnight mail, on delivery or, for registered first class mail, postage prepaid, three (3) days after deposit in the mail;

  (ii)      for

      a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

  (iii)      for

      an email, when receipt is confirmed by telephone or reply email from the recipient; and

  (iv)      for

      an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has occurred.

  (b)      Notice Addresses.  Any notice, request, demand, consent, waiver or other communication will be addressed as stated in the Sale and Servicing Agreement or the Administration
      Agreement, as applicable, or to another address as a party may give by notice to the other parties.

  Section 7.4.      GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
        ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
        BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

  Section 7.5.      WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT
        PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDING RELATING TO THIS AGREEMENT.

  
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  Section 7.6.      No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a
      power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and
      remedies under law.

  Section 7.7.      Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the
      validity, legality or enforceability of the remaining Agreement.

  Section 7.8.      Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

  Section 7.9.      Counterparts.  This Agreement may be executed in multiple counterparts. Each counterpart will be an original and all counterparts will together be one document.

  [Remainder of Page Left Blank]

  
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  IN WITNESS WHEREOF, the Issuer, the Servicer, the Administrator and the Asset Representations Reviewer have caused their
      names to be signed hereto by their respective officers thereunto duly authorized as of the date first above written.

  TOYOTA AUTO RECEIVABLES 2019-B OWNER TRUST, as Issuer

  By:      Wilmington Trust, National Association, not in its individual capacity, but solely as
      Owner Trustee

  

  

  By:     _________________________________________ 

      Name:

      Title:

  

  

  TOYOTA MOTOR CREDIT CORPORATION,

      as Servicer and Administrator

  

  

  By:     _________________________________________  

      Name:

      Title:

  

  

  CLAYTON FIXED INCOME SERVICES LLC,

      as Asset Representations Reviewer

  

  

  By:     _________________________________________  

      Name:

      Title:

  
    
      

  

  
  Schedule A

  Review Materials

  “Review Materials” means, with respect to each Receivable:

  
    
      	

            	(a)	
              the Contract;

            

    

  

  
    
      	

            	(b)	
              the original credit application executed by the related Obligor (or a photocopy or other image or electronic record thereof;

            

    

  

  
    
      	

            	(c)	
              the original certificate of title (or evidence that such certificate of title has been applied for), or a photocopy or other image thereof, and of such documents that the
                  Servicer shall keep on file evidencing the security interest in the related Financed Vehicle;

            

    

  

  
    
      	

            	(d)	
              an electronic data tape describing certain characteristics of the Receivables as of the Cutoff Date or such other applicable date of determination (the “Data Tape”);

            

    

  

  
    
      	

            	(e)	
              a list of approved contract forms for the Review Receivables, as provided by TMCC; and

            

    

  

  
    
      	

            	(f)	
              such other documentation or information (whether tangible or electronic, and including, without limitation, screen prints or reports of the Servicer’s receivables and
                  securitization systems) as the Servicer, as the case may be, may maintain and which the Servicer shall have determined to be relevant to any Test with respect to such Receivable.

            

    

  

  
    Sch. A-1

    
      

  

  
  Schedule B

  Representations, Warranties and Tests

  	
          Representations and Warranties

          Made as of the Cutoff Date and the Closing Date

           (unless otherwise specified)

        	
          Tests

        
	
          1.        Origination.  Each Receivable was originated in the United States by a Dealer for the retail sale of the related Financed Vehicle in the ordinary course of such Dealer’s business, has
              been fully and properly executed or electronically authenticated by the parties thereto, has been purchased by TMCC from such Dealer under an existing agreement with TMCC and has been validly assigned by such Dealer to TMCC.

           

        	
          Test 1-1: Dealer Address

          Confirm the Dealer address on the Contract is a United States address.

          Test 1-2: Contract Signed

          Confirm the Obligor(s) and Dealer signed the Contract.

          Test 1-3: Valid Assignee

          Confirm TMCC, or a name included in the list of acceptable name variations, is identified as the assignee in either the Assignment
              section of the Contract or separate assignment document.

          Test 1-4: Valid Assignor
                  Signature

          Confirm the Contract was completed electronically or if completed on paper, confirm the Dealer signature is present as assignor on
              the Contract or separate assignment document.

           

        
	
          2.        Security Interest.  With respect to each Receivable, as of the Closing Date, TMCC has, or has started procedures that will result in TMCC having, a perfected, first priority security
              interest in the related Financed Vehicle, which security interest was validly created and is assignable by the Seller to the Purchaser, and by the Purchaser to the Issuer.

           

        	
          Test 2-1: Lienholder

          Confirm the title documents identify either TMCC, or a name included in the list of acceptable name variations, as the first
              lienholder.

          Test 2-2:  Obligor Name

          Confirm the Obligor name(s) on the Contract, taking into account any amendments or correction notices, match(es) the name(s) on the
              title documents.

          Test 2-3:  Valid VIN

          Confirm the vehicle identification number on the Contract, taking into account any amendments or correction notices, matches the
              vehicle identification number on the title documents.

           

        
	
          3.        Simple Interest.  Each Receivable provides for scheduled monthly payments that fully amortize the Amount Financed by maturity (except for minimally different payments in the first or
              last month in the life of the Receivable) and provide for a finance charge or yield interest at its APR, in either case calculated based on the Simple Interest Method.

           

        	
          Test 3-1: Payments

          Review the Contract and confirm it reflects a level monthly payment except for the first and final payment, if any.  Sum the first
              payment (if any), the product of the number of payments (or the number of regular payments, if there is a first or final payment) and the Payment Amount and the final payment (if any) and confirm that this amount is equal to the Total of
              Payments in the Truth in Lending section of the Contract.

          Test 3-2: Simple Interest

          Observe the Contact and confirm it is a Simple Interest Method Contract.

           

        

  

  

  

  

  
    Sch. B-1

    
      

  

  
    	
            Representations and Warranties

            Made as of the Cutoff Date and the Closing Date

             (unless otherwise specified)

          	
            Tests

          

  

   

  	
          4.         Prepayment.  Each Receivable allows for prepayment without penalty.

           

        	
          Test 4-1: Prepayment

          Confirm the Contract provides a prepayment disclosure that does not require a penalty.

           

        
	
          5.        Compliance with Law.  To the Seller’s knowledge, each Receivable complied in all material respects at the time it was originated with all requirements of applicable federal, state and
              local laws, and regulations thereunder.

           

        	
          Test 5-1: Complete Contract

          Confirm the Contract was completed electronically or if completed on paper, confirm the Contract form number and revision date are
              approved for use according to TMCC internal documentation.

           

        
	
          6.        Binding Obligation.  Each Receivable is on a form contract containing customary and enforceable provisions that includes rights and remedies allowing the holder to enforce the
              obligation and realize on the related Financed Vehicle and represents the legal, valid and binding payment obligation in writing of the related Obligor, enforceable by the holder thereof in accordance with its terms, except as enforceability
              may be limited by bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity and consumer protection laws, regardless of whether such
              enforceability is considered in a proceeding in equity or at law.

           

        	
          Test 6-1:  Valid Contract
                  Form

          Confirm the Contract was completed electronically or if completed on paper, confirm the Contract form number and revision date are
              approved for use according to TMCC internal documentation.

          Test 6-2: Contract Executed

          Confirm the Obligor(s) signed the Contract.

           

        
	
          7.        No Government Obligors.  None of the Receivables is due from the United States or any state or local government, or from any agency, department or instrumentality of the United States
              or any state or local government.

           

        	
          Test 7-1: Personal Use

          Review the Obligor section on the Contract and confirm the Obligor name(s)  is that of a natural person.

          Test 7-2: No Government
                  Obligor

          If the Obligor section on the Contract does not report a natural person’s name or an obvious non-governmental business, confirm
              internet search results show no indication of the Obligor(s) to be a government agency, department, political subdivision or instrumentality.

           

        
	
          8.        Receivables in Force.  As of the Cutoff Date, no Receivable has been satisfied, nor has any Financed Vehicle been released in whole or in part from the lien granted by the related
              Receivable.

           

        	
          Test 8-1: Active Account

          Observe the Receivable in TMCC’s Data Tape, and confirm it was an active account on the Cutoff Date.

           

        

  

  

  
    Sch. B-2

    
      

  

  
    	
            Representations and Warranties

            Made as of the Cutoff Date and the Closing Date

             (unless otherwise specified)

          	
            Tests

          

  

   

  	
          9.        No Amendments or Waivers.  As of the Cutoff Date, no material provision of a Receivable has been amended, modified or waived in a manner that is prohibited by the provisions of the Sale
              and Servicing Agreement.

           

        	
          Test 9-1: Contract Form

          Confirm the Contract was completed electronically or if completed on paper, confirm the Contract form number and revision date are
              approved for use according to TMCC internal documentation.

          Test 9-2: Modification

          Review the Data Tape and the Contract (as amended by any related correction notice, if any) and confirm that, as of the Cutoff Date,
              there is no revision to the following terms:

          i.            APR

          ii.            Original Contract Term

          iii.            Monthly Payment

          iv.            Total Amount Financed

          v.            Make / Model / Model Year

          vi.            Simple Interest Method Loan

           

           

        
	
          10.     No Defenses.  To the Seller’s knowledge, as of the Closing Date, no Receivable is subject to any right of rescission, setoff, counterclaim or defense, nor has any such right been
              asserted or threatened with respect to any Receivable.

           

        	
          Test 10-1: No Litigation

          Review the Review Materials and confirm there is no evidence of litigation or other attorney involvement as of the Closing Date.

           

        
	
          11.     No Payment Default.  Except for payment delinquencies that have been continuing for a period of not more than 29 days, no payment default under the terms of any Receivable exists as of
              the Cutoff Date.

           

        	
          Test 11-1: Delinquency

          Observe TMCC’s Data Tape and confirm the Receivable was not more than 29 days delinquent as of the Cutoff Date.

           

           

        
	
          12.     No Repossession.  No Financed Vehicle has been repossessed without reinstatement as of the Cutoff Date.

           

        	
          Test 12-1: Repossession
                  Inventory

          Observe TMCC’s receivables systems and confirm the Receivable was not held in repossession inventory as of the Cutoff Date.

           

        
	
          13.    Insurance.  The terms of each Receivable require the related Obligor to obtain and maintain physical damage insurance covering the related Financed Vehicle in accordance with TMCC’s
              normal requirements.  No Financed Vehicle was subject to force-placed insurance.

           

        	
          Test 13-1: Physical Damage
                  Covered

          Confirm the Contract contains language that required the Obligor to obtain and maintain insurance against physical damage to the
              Financed Vehicle.

          Test 13-2: No Force-Placed Insurance

          Confirm the Review Materials contain no evidence the Financed Vehicle was subject to force-placed insurance.

           

           

        

  

  

  
    Sch. B-3

    
      

  

  
    	
            Representations and Warranties

            Made as of the Cutoff Date and the Closing Date

             (unless otherwise specified)

          	
            Tests

          

  

   

  	
          14.    Good Title.  Immediately prior to the transfer and assignment herein contemplated, the Seller had good and marketable title to each Receivable free and clear of all Liens and rights of
              others (other than pursuant to the Basic Documents) and, immediately upon the transfer and assignment thereof, the Purchaser will have good and marketable title to each Receivable, free and clear of all Liens and rights of others (other than
              pursuant to the Basic Documents).

           

        	
          Test 14-1: Sole Lienholder

          Confirm the title documents designate TMCC, or a name included in the list of acceptable name variations as the sole lien holder and
              that no other lien holder is listed.

          Test 14-2: No Transfer of Title

          Confirm the title documents indicate the Receivable has not been sold, assigned, or transferred to any other entity.

           

        
	
          15.    Lawful Assignment.  No Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer and assignment of such Receivable under this
              Agreement, or pursuant to the Sale and Servicing Agreement or the pledge of such Receivable under the Indenture are unlawful, void or voidable.  The terms of each Receivable do not limit the right of the owner of such Receivable to sell such
              Receivable.

           

        	
          Test 15-1: Contract Form

          Confirm the Contract was completed electronically or if completed on paper, confirm the Contract form number and revision date are
              approved for use according to TMCC internal documentation.

          Test 15-2: Assignability

          Confirm the Contract does not contain language that limits the sale or transfer of the Receivable.

           

        
	
          16.     Additional Representations and Warranties.  (A) Each Receivable is being serviced by TMCC as of the Closing Date; (B) each Receivable is secured by a new or used car, minivan,
              light-duty truck or sport utility vehicle; (C) no Receivable was more than 29 days past due as of the Cutoff Date; and (D) as of the Cutoff Date, no Receivable was noted in the records of TMCC or the Servicer as being the subject of a
              bankruptcy proceeding or insolvency proceeding.

           

        	
          Test 16(A):  Servicing

          Confirm the Review Materials show the Receivable was being serviced by TMCC as of the Closing Date.

          Test 16(B):  Financed
                  Vehicle

          Review the Contract and confirm the Financed Vehicle is a new or used car, minivan, light-duty truck or sport utility vehicle.

          Test 16(C):  Delinquency

          Confirm the Data Tape shows the Receivable is not more than 29 days past due as of the Cut-off Date.

          Test 16(D):  No Bankruptcy

          Confirm the Data Tape shows the Obligor was not noted as being the subject of any bankruptcy or insolvency proceeding as of the
              Cutoff Date.

           

        

  

  

  

  

  Sch. B-4Exhibit

Exhibit 10.1

TRANSFERABLE

TIMKENSTEEL CORPORATION
Nonqualified Stock Option Agreement

WHEREAS, __________ (“Optionee”) is an employee of TimkenSteel Corporation (the “Company”); and

WHEREAS, the grant of Option Rights evidenced hereby was authorized by a resolution of the Compensation Committee (the “Committee”) of the Board of Directors (the “Board”) of the Company that was duly adopted on February 13, 2019 (the “Date of Grant”), and the execution of an Option Rights agreement in the form hereof (this “Agreement”) was authorized by a resolution of the Committee duly adopted on that date; and

WHEREAS, the Option Rights evidenced hereby are intended to be nonqualified Option Rights and shall not be treated as Incentive Stock Options.
    
NOW, THEREFORE, pursuant to the Company’s Amended and Restated 2014 Equity and Incentive Compensation Plan (the “Plan”), the Company hereby grants to Optionee nonqualified Option Rights (the “Option”) to purchase ___ Common Shares at the exercise price of $____ per Common Share (the “Option Price”), which represents the Market Value per Share on the Date of Grant.  If applicable, the Company agrees to cause certificates for any Common Shares purchased hereunder to be delivered to Optionee upon payment of the Option Price in full, subject to the terms and conditions of the Plan, in addition to the terms and conditions of this Agreement.

1.Four-Year Vesting of Option.  
(a)    Normal Vesting:  Unless terminated as hereinafter provided, the Option shall be exercisable to the extent of one-fourth (1/4th) of the Common Shares covered by the Option on the first anniversary of the Date of Grant so long as Optionee shall have been in the continuous employ of the Company or a Subsidiary on such date and to the extent of an additional one-fourth (1/4th) of the Common Shares covered by the Option on each of the second, third and fourth anniversaries of the Date of Grant so long as Optionee shall have been in the continuous employ of the Company or a Subsidiary as of and on each such date.  For the purposes of this Agreement, the continuous employment of Optionee with the Company or a Subsidiary shall not be deemed to have been interrupted, and Optionee shall not be deemed to have ceased to be an employee of the Company or a Subsidiary, by reason of the transfer of his or her employment between or among the Company and its Subsidiaries.
(b)    Vesting Upon Retirement with Consent:  If Optionee retires with the Company’s consent before the fourth anniversary of the Date of Grant, then Optionee’s Option shall become nonforfeitable in accordance with the terms and conditions of Section 1(a) as if Optionee had remained in the continuous employ of the Company or a Subsidiary from the Date of Grant until 

                                      

the fourth anniversary of the Date of Grant or the occurrence of an event referenced in Section 2, whichever occurs first.
As used herein, “retire with the Company’s consent” means: (i) the retirement of Optionee prior to age 62 and eligible to retire under a retirement plan of the Company or a Subsidiary, if the Board or the Committee determines that his or her retirement is for the convenience of the Company or a Subsidiary, or (ii) the retirement of Optionee at or after age 62 and eligible to retire under a retirement plan of the Company or a Subsidiary.

(c)    To the extent the Option has become exercisable in accordance with the terms of this Agreement, it may be exercised in whole or in part from time to time thereafter.
2.    Accelerated Vesting of Option.  Notwithstanding the provisions of Sections 1(a) and 1(b) hereof, the Option may become exercisable earlier than the time provided in such sections if any of the following circumstances apply:
(a)    Death or Disability:  The Option shall become immediately exercisable in full if Optionee dies or becomes permanently disabled while in the employ of the Company or any Subsidiary.  As used herein, “permanently disabled” means that Optionee has qualified for long-term disability benefits under a disability plan or program of the Company or a Subsidiary or, in the absence of a disability plan or program of the Company or a Subsidiary, under a government-sponsored disability program and is “disabled” within the meaning of Section 409A(a)(2)(C) of the Code.
(b)    Change in Control:
(i)        Upon a Change in Control occurring on or before the fourth anniversary of the Date of Grant while Optionee is an employee of the Company or a Subsidiary, to the extent the Option has not been forfeited, the Option shall become immediately exercisable in full, except to the extent a Replacement Award is provided to Optionee for such Option.
(ii)        As used in this Agreement, a “Replacement Award” means an award (A) of stock options, (B) that has a value at least equal to the value of the Option, (C) that relates to publicly traded equity securities of the Company or its successor in the Change in Control (or another entity that is affiliated with the Company or its successor following the Change in Control), (D) the tax consequences of which, under the Code, if Optionee is subject to U.S. federal income tax under the Code, are not less favorable to Optionee than the tax consequences relative to the Option, (E) that vests in full upon a termination of Optionee’s employment with the Company or a Subsidiary or their successors in the Change in Control (or another entity that is affiliated with the Company or a Subsidiary or their successors following the Change in Control) (as applicable, the “Successor”) for Good Reason by Optionee or without Cause by such employer, or upon the death of Optionee or Optionee becoming permanently disabled, within a period of two years after the Change in Control, and (F) the other terms and conditions of which are not less favorable to Optionee than the terms and conditions of the Option (including the provisions that would apply in 

2
                       

the event of a subsequent Change in Control).  Without limiting the generality of the foregoing, the Replacement Award may take the form of a continuation of the Option if the requirements of the preceding sentence are satisfied.  The determination of whether the conditions of this Section 2(b)(ii) are satisfied will be made by the Committee, as constituted immediately before the Change in Control, in its sole discretion.
(iii)        For purposes of Section 2(b)(ii), “Cause” will be defined not less favorably with respect to Optionee than: any intentional act of fraud, embezzlement or theft in connection with Optionee’s duties with the Successor, any intentional wrongful disclosure of secret processes or confidential information of the Successor, or any intentional wrongful engagement in any competitive activity that would constitute a material breach of Optionee’s duty of loyalty to the Successor, and no act, or failure to act, on the part of Optionee shall be deemed “intentional” unless done or omitted to be done by Optionee not in good faith and without reasonable belief that Optionee’s action or omission was in or not opposed to the best interest of the Successor; provided, that for any Optionee who is party to an individual severance or employment agreement defining Cause, “Cause” will have the meaning set forth in such agreement.  Also for purposes of Section 2(b)(ii), “Good Reason” means: a material reduction in the nature or scope of the responsibilities, authorities or duties of Optionee attached to Optionee’s position held immediately prior to the Change in Control, a change of more than 60 miles in the location of Optionee’s principal office immediately prior to the Change in Control, or a material reduction in Optionee’s remuneration upon or after the Change in Control; provided, that no later than 90 days following an event constituting Good Reason Grantee gives notice to the Successor of the occurrence of such event and the Successor fails to cure the event within 30 days following the receipt of such notice.
(c)    Divestiture:  The Option is immediately exercisable in full if Optionee’s employment with the Company or a Subsidiary terminates as the result of a divestiture.  As used herein, the term “divestiture” means a permanent disposition to a Person other than the Company or any Subsidiary of a plant or other facility or property at which Optionee performs a majority of Optionee’s services whether such disposition is effected by means of a sale of assets, a sale of Subsidiary stock or otherwise.
(d)    Layoff:  If (i) Optionee’s employment with the Company or a Subsidiary terminates as the result of a layoff and (ii) Optionee is entitled to receive severance pay pursuant to the terms of any severance pay plan of the Company in effect at the time of Optionee’s termination of employment that provides for severance pay calculated by multiplying Optionee’s base compensation by a specified severance period, then the Option shall be exercisable with respect to the total number of Common Shares that would have been exercisable under the provisions of Section 1(a) hereof if Optionee had remained in the employ of the Company through the end of the severance period.
As used herein, “layoff” means the involuntary termination by the Company or any Subsidiary of Optionee’s employment with the Company or any Subsidiary due to (i) a reduction in force leading to a permanent downsizing of the salaried workforce, (ii) a permanent shutdown 

3
                       

of the plant, department or subdivision in which Optionee works, (iii) an elimination of position; or (iv) any or no reason, except for Cause, at the Company’s discretion; provided that a termination under clause (iv) shall constitute a “layoff” for purposes of this Agreement only (A) upon the prior approval of the Compensation Committee in the case of an executive officer, or (B) upon the prior approval of the Executive Vice President Organizational Advancement & Corporate Relations or the Executive Vice President & General Counsel in the case of any other terminated Optionee.  
3.    Termination of Option.  The Option shall terminate automatically and without further notice on the earliest of the following dates:
(a)    thirty days after the date upon which Optionee ceases to be an employee of the Company or a Subsidiary, unless (i) the cessation of his or her employment (A) is a result of his or her death, permanent disability, retirement with the Company’s consent, or early retirement or (B) follows a Change in Control, a divestiture, or a layoff; or (ii) Optionee continues to serve as a director of the Company following the cessation of his or her employment;
(b)    three years after the date upon which Optionee ceases to be an employee of the Company or a Subsidiary following (i) a Change in Control, (ii) a divestiture, or (iii) a layoff;
(c)    three years after the date upon which Optionee ceases to be an employee of the Company or Subsidiary as a result of early retirement.  As used herein, “early retirement” shall mean the retirement of Optionee prior to age 62 under a retirement plan of the Company or a Subsidiary when such retirement is not a retirement with the Company’s consent;
(d)    five years after the date upon which Optionee ceases to be an employee of the Company or a Subsidiary (i) as a result of his or her death, or (ii) as a result of his or her permanent disability;
(e)    five years after the date upon which Optionee ceases to be a director of the Company if he or she continues to serve as a director of the Company following the cessation of his or her employment other than as a result of his retirement with the Company’s consent;
(f)    ten years after the Date of Grant. (By way of illustration, if (i) Optionee remains an employee of the Company or a Subsidiary until the ten-year anniversary of the Date of Grant, or (ii) Optionee ceases to be an employee of the Company or a Subsidiary as a result of his or her retirement with the Company’s consent, the Option shall terminate automatically and without further notice ten years after the Date of Grant.)
In the event Optionee intentionally commits an act that the Committee determines to be materially adverse to the interests of the Company or a Subsidiary, the Option shall terminate at the time of that determination notwithstanding any other provision of this Agreement.

4.    Payment of Option Price.  The Option Price shall be payable (a) in cash in the form of currency or check or other cash equivalent acceptable to the Company, (b) by transfer to the Company of nonforfeitable, unrestricted Common Shares that have been owned by Optionee for at least six months prior to the date of exercise, (c) subject to any conditions or limitations established 

4
                       

by the Committee, the Company’s withholding Common Shares otherwise issuable upon exercise of the Option pursuant to a “net exercise” arrangement, or (d) by any combination of the methods of payment described in Sections 4(a), 4(b) and 4(c) hereof.  Nonforfeitable, unrestricted Common Shares that are transferred by Optionee in payment of all or any part of the Option Price and Common Shares withheld by the Company shall be valued on the basis of their Market Value per Share.  Subject to the terms and conditions of Section 7 hereof and Section 12 of the Plan, and subject to any deferral election Optionee may have made pursuant to any plan or program of the Company, the Company shall cause certificates, if applicable, for any shares purchased hereunder to be delivered to Optionee upon payment of the Option Price in full.
5.    Compliance with Law.  Notwithstanding any other provision of this Agreement, the Option shall not be exercisable if the exercise thereof would result in a violation of any applicable law or regulation.  To the extent the Ohio Securities Act shall be applicable to the Option, the Option shall not be exercisable unless the Common Shares or other securities covered by the Option are (a) exempt from registration thereunder, (b) the subject of a transaction that is exempt from compliance therewith, (c) registered by description or qualification thereunder or (d) the subject of a transaction that shall have been registered by description thereunder.
6.    Transferability and Exercisability.
(a)      Except as provided in Section 6(b) below, the Option, including any interest therein, shall not be transferable by Optionee except by will or the laws of descent and distribution upon the death of Optionee, and the Option shall be exercisable during the lifetime of Optionee only by him or her or, in the event of his or her legal incapacity to do so, by his or her guardian or legal representative acting on behalf of Optionee in a fiduciary capacity under state law and court supervision.
(b)      Notwithstanding Section 6(a) above, the Option may be transferable by Optionee, without payment of consideration therefor, to any family member of Optionee (as defined in Form S-8), or to one or more trusts established solely for the benefit of such members of the immediate family or to partnerships in which the only partners are such members of the immediate family of Optionee; provided, however, that such transfer will not be effective until notice of such transfer is delivered to the Company; and provided, further, however, that any such transferee is subject to the same terms and conditions hereunder as Optionee.
7.    Adjustments.  Subject to Section 13 of the Plan, the Committee shall make any adjustments in the Option Price and the number or kind of shares of stock or other securities covered by the Option, or in any other terms of the Option, that the Committee may determine to be equitably required to prevent any dilution or expansion of Optionee’s rights under this Agreement that otherwise would result from any (a) stock dividend, stock split, combination of shares, recapitalization or other change in the capital structure of the Company, (b) merger, consolidation, separation, reorganization or partial or complete liquidation involving the Company or (c) other transaction or event having an effect similar to any of those referred to in subsection (a) or (b) herein.  Furthermore, in the event any transaction or event described or referred to in the immediately preceding sentence shall occur, the Committee shall provide in substitution of any or all of Optionee’s 

5
                       

rights under this Agreement such alternative consideration as the Committee may determine in good faith to be equitable under the circumstances.
8.    Withholding Taxes.  If the Company shall be required to withhold any federal, state, local or foreign tax in connection with any exercise of the Option, Optionee shall pay the tax or make provisions that are satisfactory to the Company for the payment thereof.  The Optionee may elect to satisfy all or any part of any such withholding obligation by surrendering to the Company a portion of the Common Shares that are issuable to Optionee upon the exercise of the Option.  If such election is made, the shares so surrendered by Optionee shall be credited against any such withholding obligation at their Market Value per Share on the date of such surrender.  In no event, however, shall the Company accept Common Shares for payment of taxes in excess of required tax withholding rates (unless such higher withholding amounts would not result in adverse accounting implications for the Company).  Unless otherwise determined by the Committee at any time, Optionee may surrender Common Shares owned for more than six months to satisfy any tax obligations resulting from any such transaction.
9.    Detrimental Activity and Recapture.
(a)    Notwithstanding anything in this Agreement, in the event that, as determined by the Committee, Optionee engages in Detrimental Activity during employment with the Company or a Subsidiary, the Option will be forfeited automatically and without further notice at the time of that determination.  As used herein, “Detrimental Activity” means:
		
	(i)
	    engaging in any activity, as an employee, principal, agent, or consultant for another entity that competes with the Company in any actual, researched, or prospective product, service, system, or business activity for which Grantee has had any direct responsibility during the last two years of his or her employment with the Company or a Subsidiary, in any territory in which the Company or a Subsidiary manufactures, sells, markets, services, or installs such product, service, or system, or engages in such business activity;

		
	(ii)
	    soliciting any employee of the Company or a Subsidiary to terminate his or her employment with the Company or a Subsidiary;

		
	(iii)
	    the disclosure to anyone outside the Company or a Subsidiary, or the use in other than the Company or a Subsidiary’s business, without prior written authorization from the Company, of any confidential, proprietary or trade secret information or material relating to the business of the Company and its Subsidiaries, acquired by Grantee during his or her employment with the Company or its Subsidiaries or while acting as a director of or consultant for the Company or its Subsidiaries thereafter;

		
	(iv)
	    the failure or refusal to disclose promptly and to assign to the Company upon request all right, title and interest in any invention or 

6
                       

idea, patentable or not, made or conceived by Grantee during employment by the Company and any Subsidiary, relating in any manner to the actual or anticipated business, research or development work of the Company or any Subsidiary or the failure or refusal to do anything reasonably necessary to enable the Company or any Subsidiary to secure a patent where appropriate in the United States and in other countries;
		
	(v)
	    activity that results in Termination for Cause.  As used herein, “Termination for Cause” means a termination: (A) due to Grantee’s willful and continuous gross neglect of his or her duties for which he or she is employed; or (B) due to an act of dishonesty on the part of Grantee constituting a felony resulting or intended to result, directly or indirectly, in his or her gain for personal enrichment at the expense of the Company or a Subsidiary; or

		
	(vi)
	    any other conduct or act determined to be injurious, detrimental or prejudicial to any significant interest of the Company or any Subsidiary unless Grantee acted in good faith and in a manner he or she reasonably believed to be in or not opposed to the best interests of the Company.

(b)    If a Restatement occurs and the Committee determines that Optionee is personally responsible in whole or in part for causing the Restatement as a result of Optionee’s personal misconduct or any fraudulent activity on the part of Optionee, then the Committee has discretion to, based on applicable facts and circumstances and subject to applicable law, cause the Company to recover all or any portion (but no more than 100%) of the Option (and the Common Shares underlying the Option) awarded to Optionee for some or all of the years covered by the Restatement. The amount of the Option (and the Common Shares underlying the Option) recovered by the Company shall be limited to the amount by which such Option (and the Common Shares underlying the Option) exceeded the amount that would have been awarded to Optionee had the Company’s financial statements for the applicable restated fiscal year or years been initially filed as restated, as reasonably determined by the Committee. The Committee also shall determine whether the Company shall effect any recovery under this Section 9(b) by: (i) seeking repayment from Optionee; (ii) reducing, except with respect to any non-qualified deferred compensation under Section 409A of the Code, the amount that would otherwise be payable to Optionee under any compensatory plan, program or arrangement maintained by the Company (subject to applicable law and the terms and conditions of such plan, program or arrangement); (iii) by withholding, except with respect to any non-qualified deferred compensation under Section 409A of the Code, payment of future increases in compensation (including the payment of any discretionary bonus amount) that would otherwise have been made to Optionee in accordance with the Company’s compensation practices; or (iv) by any combination of these alternatives.  As used herein, “Restatement” means a restatement (made within 36 months of the publication of the financial statements that are required to be restated) of any part of the Company’s financial statements for any fiscal year or years beginning 

7
                       

with the year in which the Date of Grant occurs due to material noncompliance with any financial reporting requirement under the U.S. securities laws applicable to such fiscal year or years.
10.    No Right to Future Awards or Continued Employment.  This Option is a voluntary, discretionary bonus being made on a one-time basis and it does not constitute a commitment to make any future awards.  This Option and any payments made hereunder will not be considered salary or other compensation for purposes of any severance pay or similar allowance, except as otherwise required by law.  Nothing in this Agreement will give Optionee any right to continue employment with the Company or any Subsidiary, as the case may be, or interfere in any way with the right of the Company or a Subsidiary to terminate the employment of Optionee.
11.    Relation to Other Benefits.  Any economic or other benefit to Optionee under this Agreement or the Plan shall not be taken into account in determining any benefits to which Optionee may be entitled under any profit-sharing, retirement or other benefit or compensation plan maintained by the Company or a Subsidiary and shall not affect the amount of any life insurance coverage available to any beneficiary under any life insurance plan covering employees of the Company or a Subsidiary.
12.    Amendments.  Any amendment to the Plan shall be deemed to be an amendment to this Agreement to the extent that the amendment is applicable hereto; provided, however, that no amendment shall adversely affect the rights of Optionee with respect to the Option without Optionee’s consent.
13.    Severability.  If any provision of this Agreement or the application of any provision hereof to any person or circumstances is held invalid or unenforceable, the remainder of this Agreement and the application of such provision in any other person or circumstances shall not be affected, and the provisions so held to be invalid or unenforceable shall be reformed to the extent (and only to the extent) necessary to make it enforceable and valid.
14.    Processing of Information.  Information about Optionee and Optionee’s participation in the Plan may be collected, recorded and held, used and disclosed for any purpose related to the administration of the Plan.  Optionee understands that such processing of this information may need to be carried out by the Company and its Subsidiaries and by third party administrators whether such persons are located within Optionee’s country or elsewhere, including the United States of America.  The Optionee consents to the processing of information relating to Optionee and Optionee’s participation in the Plan in any one or more of the ways referred to above.  
15.    Governing Law.  This Agreement is made under, and shall be construed in accordance with, the internal substantive laws of the State of Ohio.
16.    Relation to Plan.  Capitalized terms used herein without definition shall have the meanings assigned to them in the Plan.
[SIGNATURES ON FOLLOWING PAGE]

8
                       

This Agreement is executed by the Company on this ___ day of __________, 20__.

TIMKENSTEEL CORPORATION

By  ________________________________________
       Frank A. DiPiero
Executive Vice President, General Counsel and Secretary

The undersigned Optionee hereby acknowledges receipt of an executed original of this Agreement and accepts the Option granted hereunder, subject to the terms and conditions of the Plan and the terms and conditions hereinabove set forth.

______________________________        Optionee
Date:  _________________________

9

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