Document:

EX-10.1

 

EXHIBIT 10.1

EXECUTION COPY

PURCHASE AND SALE AGREEMENT

Dated as of August 30, 2006

between

VARIOUS ENTITIES LISTED ON SCHEDULE I,

as the Originators

and

COOPER RECEIVABLES LLC

Purchase and Sale Agreement
(Cooper)

 

 

CONTENTS

	 	 	 	 	 
	Clause      Subject Matter	 	Page
	 
	 	 	 	 
	ARTICLE I
	 	 	 	 
	AGREEMENT TO PURCHASE AND SELL
	 	 	 	 
	1
	 	 	 	 
	 
	 	 	 	 
	SECTION 1.1 Agreement To Purchase and Sell
	 	 	1	 
	SECTION 1.2 Timing of Purchases
	 	 	2	 
	SECTION 1.3 Consideration for Purchases
	 	 	3	 
	SECTION 1.4 Purchase and Sale Termination Date
	 	 	3	 
	SECTION 1.5 Intention of the Parties
	 	 	3	 
	 
	 	 	 	 
	ARTICLE II
	 	 	 	 
	PURCHASE REPORT; CALCULATION OF PURCHASE PRICE
	 	 	 	 
	4
	 	 	 	 
	 
	 	 	 	 
	SECTION 2.1 Purchase Report
	 	 	4	 
	SECTION 2.2 Calculation of Purchase Price
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III
	 	 	 	 
	PAYMENT OF PURCHASE PRICE
	 	 	 	 
	5
	 	 	 	 
	SECTION 3.1 Contribution of Receivables and Initial Purchase Price Payment
	 	 	5	 
	SECTION 3.2 Subsequent Purchase Price Payments
	 	 	5	 
	SECTION 3.3 Settlement as to Specific Receivables and Dilution
	 	 	6	 
	SECTION 3.4 Reconveyance of Receivables
	 	 	7	 
	 
	 	 	 	 
	ARTICLE IV
	 	 	 	 
	CONDITIONS OF PURCHASES
	 	 	 	 
	7
	 	 	 	 
	 
	 	 	 	 
	SECTION 4.1 Conditions Precedent to Initial Purchase
	 	 	7	 
	SECTION 4.2 Certification as to Representations and Warranties
	 	 	8	 
	SECTION 4.3 Additional Originators
	 	 	9	 
	 
	 	 	 	 
	ARTICLE V
	 	 	 	 
	REPRESENTATIONS AND WARRANTIES OF THE ORIGINATORS
	 	 	 	 
	9
	 	 	 	 
	 
	 	 	 	 
	SECTION 5.1 Existence and Power
	 	 	9	 
	SECTION 5.2 Company and Governmental Authorization, Contravention
	 	 	9	 
	SECTION 5.3 Binding Effect of Agreement
	 	 	10	 
	SECTION 5.4 Accuracy of Information
	 	 	10	 
	SECTION 5.5 Actions, Suits
	 	 	10	 
	SECTION 5.6 Taxes
	 	 	10	 
	SECTION 5.7 Compliance with Applicable Laws
	 	 	10	 
	SECTION 5.8 Reliance on Separate Legal Identity
	 	 	10	 
	SECTION 5.9 Investment Company
	 	 	11	 
	SECTION 5.10 Perfection
	 	 	11	 
	SECTION 5.11 Creation of Receivables
	 	 	11	 
	 
	 	 	 	 
	-i-
	 	 	 	 

 

 

CONTENTS

	 	 	 	 	 
	Clause      Subject Matter	 	Page
	SECTION 5.12 Credit and Collection Policy
	 	 	11	 
	SECTION 5.13 Enforceability of Contracts
	 	 	11	 
	SECTION 5.14 Location and Offices
	 	 	11	 
	SECTION 5.15 Good Title
	 	 	11	 
	SECTION 5.16 Names
	 	 	12	 
	SECTION 5.17 Nature of Receivables
	 	 	12	 
	SECTION 5.18
Bulk Sales, Margin Regulations, No Fraudulent Conveyance, Investment Company
	 	 	12	 
	SECTION 5.19 Financial Condition
	 	 	12	 
	SECTION 5.20 Licenses, Contingent Liabilities, and Labor Controversies
	 	 	12	 
	SECTION 5.21 Reaffirmation of Representations and Warranties by the Originator
	 	 	12	 
	 
	 	 	 	 
	ARTICLE VI
	 	 	 	 
	COVENANTS OF THE ORIGINATORS
	 	 	 	 
	13
	 	 	 	 
	SECTION 6.1 Affirmative Covenants
	 	 	13	 
	SECTION 6.2 Reporting Requirements
	 	 	14	 
	SECTION 6.3 Negative Covenants
	 	 	15	 
	SECTION 6.4 Substantive Consolidation
	 	 	16	 
	 
	 	 	 	 
	ARTICLE VII
	 	 	 	 
	ADDITIONAL RIGHTS AND OBLIGATIONS IN RESPECT OF RECEIVABLES
	 	 	 	 
	18
	 	 	 	 
	SECTION 7.1 Rights of the Company
	 	 	18	 
	SECTION 7.2 Responsibilities of the Originators
	 	 	18	 
	SECTION 7.3 Further Action Evidencing Purchases
	 	 	19	 
	SECTION 7.4 Application of Collections
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VIII
	 	 	 	 
	PURCHASE AND SALE TERMINATION EVENTS
	 	 	 	 
	20
	 	 	 	 
	SECTION 8.1 Purchase and Sale Termination Events
	 	 	20	 
	SECTION 8.2 Remedies
	 	 	20	 
	ARTICLE IX
	 	 	 	 
	INDEMNIFICATION
	 	 	 	 
	20
	 	 	 	 
	SECTION 9.1 Indemnities by the Originators
	 	 	20	 
	 
	 	 	 	 
	ARTICLE X
	 	 	 	 
	MISCELLANEOUS
	 	 	 	 
	22
	 	 	 	 
	SECTION 10.1 Amendments, etc
	 	 	22	 
	SECTION 10.2 Notices, etc
	 	 	23	 
	 
	 	 	 	 
	-ii-
	 	 	 	 

 

 

CONTENTS

	 	 	 	 	 
	Clause      Subject Matter	 	Page
	SECTION 10.3 No Waiver; Cumulative Remedies
	 	 	23	 
	SECTION 10.4 Binding Effect; Assignability
	 	 	23	 
	SECTION 10.5 Governing Law
	 	 	23	 
	SECTION 10.6 Costs, Expenses and Taxes
	 	 	23	 
	SECTION 10.7 SUBMISSION TO JURISDICTION
	 	 	24	 
	SECTION 10.8 WAIVER OF JURY TRIAL
	 	 	24	 
	SECTION 10.9 Captions and Cross References; Incorporation by Reference
	 	 	25	 
	SECTION 10.10 Execution in Counterparts
	 	 	25	 
	SECTION 10.11 Acknowledgment and Agreement
	 	 	25	 
	SECTION 10.12 No Proceeding
	 	 	25	 
	SECTION 10.13 Limited Recourse
	 	 	25	 
	 
	 	 	 	 
	-iii-
	 	 	 	 

 

 

SCHEDULES

	 	 	 
	Schedule I

	 	List of Originators
	Schedule II

	 	Location of Each Originator
	Schedule III

	 	Location of Books and Records of Originators
	Schedule IV

	 	Trade Names
	Schedule V

	 	Actions/Suits

EXHIBITS

	 	 	 
	Exhibit A

	 	Form of Purchase Report
	Exhibit B

	 	Form of Company Note
	Exhibit C

	 	Form of Joinder Agreement
	 
	 	 

					
	 
	 	-iv-
	 	Purchase and Sale Agreement

 

 

     THIS PURCHASE AND SALE AGREEMENT (as amended, restated, supplemented or otherwise modified
from time to time, this “Agreement”), dated as of August 30, 2006 is entered into between
the VARIOUS ENTITIES LISTED ON SCHEDULE I HERETO (each, an “Originator”; and collectively,
“Originators”), and COOPER RECEIVABLES LLC, a Delaware limited liability company (the
“Company”).

DEFINITIONS

     Unless otherwise indicated herein, capitalized terms used and not otherwise defined in this
Agreement are defined in Exhibit I to the Receivables Purchase Agreement, dated as of the
date hereof (as the same may be amended, restated, supplemented or otherwise modified from time to
time, the “Receivables Purchase Agreement”), among the Company, as Seller, Cooper Tire &
Rubber Company (individually, “Cooper”), as initial Servicer (in such capacity, the
“Servicer”), the various Purchasers and Purchaser Agents from time to time party thereto,
and PNC Bank, National Association, as Administrator. All references herein to months are to
calendar months unless otherwise expressly indicated.

BACKGROUND:

     1. The Company is a special purpose limited liability company, all of the issued and
outstanding membership interests of which are owned by Cooper;

     2. The Originators generate Receivables in the ordinary course of their businesses;

     3. The Originators wish to sell Receivables to the Company, and the Company is willing to
purchase Receivables from the Originators, on the terms and subject to the conditions set forth
herein;

     4. The Originators and the Company intend this transaction to be a true sale of Receivables by
each Originator to the Company, providing the Company with the full benefits of ownership of the
Receivables, and the Originators and the Company do not intend the transactions hereunder to be a
loan from the Company to any Originator.

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

ARTICLE I

AGREEMENT TO PURCHASE AND SELL

     SECTION 1.1 Agreement To Purchase and Sell. On the terms and subject to the
conditions set forth in this Agreement, each Originator, severally and for itself, agrees to sell
to the Company, and the Company agrees to purchase from such Originator, from time to time on or
after the Closing Date, but before the Purchase and Sale Termination Date (as defined in
Section 1.4), all of such Originator’s right, title and interest in and to:

     (a) each Receivable of such Originator that existed and was owing to such Originator at
the closing of such Originator’s business in Findlay, Ohio on July 31,

					
	 	 	 	 	 
	 
	 	 
	 	Purchase and Sale Agreement

 

 

     2006 (the
“Cut-off Date”) other than Receivables contributed pursuant to Section 3.1
(the “Contributed Receivables”);

     (b) each Receivable generated by such Originator after the Cut-off Date to but
excluding the Purchase and Sale Termination Date;

     (c) all rights to, but not the obligations of, such Originator under all Related
Security with respect to any of the foregoing Receivables;

     (d) all monies due or to become due to such Originator with respect to any of the
foregoing;

     (e) all books and records of such Originator to the extent related to any of the
foregoing;

     (f) all collections and other proceeds and products of any of the foregoing (as defined
in the UCC) that are or were received by such Originator on or after the Cut-off Date,
including, without limitation, all funds which either are received by such Originator, the
Company or the Servicer from or on behalf of the Obligors in payment of any amounts owed
(including, without limitation, invoice price, finance charges, interest and all other
charges) in respect of any of the above Receivables or are applied to such amounts owed by
the Obligors (including, without limitation, any insurance payments that such Originator,
the Company or the Servicer applies in the ordinary course of its business to amounts owed
in respect of any of the above Receivables, and net proceeds of sale or other disposition of
repossessed goods or other collateral or property of the Obligors in respect of any of the
above Receivables or any other parties directly or indirectly liable for payment of such
Receivables); and

     (g) all right, title and interest (but not obligations) in and to the Lock-Box
Accounts, into which any Collections or other proceeds with respect to such Receivables may
be deposited, and any related investment property acquired with any such collections or
other proceeds (as such term is defined in the applicable UCC).

All purchases and contributions hereunder shall be made without recourse, but shall be made
pursuant to, and in reliance upon, the representations, warranties and covenants of the Originators
set forth in this Agreement and each other Transaction Document. No obligation or liability to any
Obligor on any Receivable is intended to be assumed by the Company hereunder, and any such
assumption is expressly disclaimed. The Company’s foregoing commitment to purchase Receivables and
the proceeds and rights described in clauses (c) through (g) (collectively, the
“Related Rights”) is herein called the “Purchase Facility.”

     SECTION 1.2 Timing of Purchases.

          (a) Closing Date Purchases. Each Originator’s entire right, title and interest in (i)
each Receivable that existed and was owing to such Originator at the Cut-off Date (other than
Contributed Receivables), (ii) all
Receivables created by such Originator after the Cut-off Date,
to and including the Closing Date (other than Contributed Receivables), and (iii) all

					
	 	 	 	 	 
	 
	 	2
	 	Purchase and Sale Agreement

 

 

Related
Rights with respect thereto automatically shall be deemed to have been sold by such Originator to
the Company on the Closing Date.

          (b) Subsequent Purchases. After the Closing Date, until the Purchase and Sale
Termination Date, each Receivable and the Related Rights generated by each Originator shall be
deemed to have been sold by such Originator to the Company immediately (and without further action)
upon the creation of such Receivable.

     SECTION 1.3 Consideration for Purchases. On the terms and subject to the conditions
set forth in this Agreement, the Company agrees to make Purchase Price payments to the Originators
in accordance with Article III and to reflect all contributions in accordance with
Section 3.1.

     SECTION 1.4 Purchase and Sale Termination Date. The “Purchase and Sale
Termination Date” shall be the earliest to occur of (a) the date the Purchase Facility is
terminated pursuant to Section 8.2 and (b) the Payment Date immediately following the day
on which the Originators shall have given written notice to the Company, the Administrator and each
Purchaser Agent at or prior to 10:00 a.m. (New York City time) that the Originators desire to
terminate this Agreement.

     SECTION 1.5 Intention of the Parties. It is the express intent of each Originator and
the Company that each conveyance by such Originator to the Company pursuant to this Agreement of
the Receivables and Related Rights, including without limitation, all Receivables, if any,
constituting general intangibles as defined in the UCC, and all Related Rights be construed as a
valid and perfected sale and absolute assignment (without recourse except as provided herein) of
such Receivables and Related Rights by such Originator to the Company (rather than the grant of a
security interest to secure a debt or other obligation of such Originator) and that the right,
title and interest in and to such Receivables and Related Rights conveyed to the Company be prior
to the rights of and enforceable against all other Persons at any time, including, without
limitation, lien creditors, secured lenders, purchasers and any Person claiming through such
Originator. The parties acknowledge that an outright sale of Receivables and interests in
Receivables is governed by Article 9 of the Uniform Commercial Code as enacted in the State of New
York and the states in which the parties may be organized or otherwise have a presence (without
distinguishing the applicable jurisdiction, “Article 9”), notwithstanding that such a sale
is not intended for security, The parties also acknowledge that, as a drafting convention under
Article 9, terms used under Article 9 for secured transactions also apply to outright sales of
receivables, including “debtor”, which applies to a seller of receivables, “secured party”, which
applies to a buyer of receivables, and “security interest”, which applies to the buyer’s outright
ownership interest. Thus, such terms, and other terms used in Article 9, will apply to this
Agreement, and may be used in this Agreement or in connection with this Agreement and such use does
not affect the nature of the outright sale of the Receivables by an Originator to the Company.
Thus, under the Article 9
drafting convention, the outright sale of the Receivables may be described as a transaction by
which the Originators have granted to the Company a security interest in, among other things, the
Receivables. However, if, contrary to the mutual intent of the parties, any conveyance of
Receivables and Related Rights, including without limitation any Receivables constituting general
intangibles, is not construed to be both a valid and perfected sale and absolute assignment of such
Receivables and Related Rights, and a conveyance of such Receivables and

					
	 	 	 	 	 
	 
	 	3
	 	Purchase and Sale Agreement

 

 

Related Rights that is
prior to the rights of and enforceable against all other Persons at any time, including without
limitation lien creditors, secured lenders, purchasers and any Person claiming through such
Originator, then, it is the intent of such Originator and the Company that (i) this Agreement also
shall be deemed to be, and hereby is, a security agreement within the meaning of the UCC; and (ii)
such Originator shall be deemed to have granted to the Company as of the date of this Agreement,
and such Originator hereby grants to the Company a security interest in, to and under all of such
Originator’s right, title and interest in and to: (A) the Receivables and the Related Rights now
existing and hereafter created by such Originator transferred or purported to be transferred
hereunder, (B) all monies due or to become due and all amounts received with respect thereto, (C)
all books and records of such Originator to the extent related to any of the foregoing, and (D) all
proceeds and products of any of the foregoing to secure all of such Originator’s obligations
hereunder.

ARTICLE II

PURCHASE REPORT; CALCULATION OF PURCHASE PRICE

     SECTION 2.1 Purchase Report. On the Closing Date and on the 18th day of
each calendar month thereafter (or if such day is not a Business Day, the next occurring Business
Day) (each such date, a “Monthly Purchase Report Date”), the Servicer shall deliver to the
Company and each Originator a report in substantially the form of Exhibit A (each such
report being herein called a “Purchase Report”) setting forth, among other things:

          (a) Receivables purchased (or, in the case of Contributed Receivables, received) by the
Company from each Originator on the Closing Date (in the case of the Purchase Report to be
delivered on the Closing Date);

          (b) Receivables purchased (or, in the case of Contributed Receivables, received) by the
Company from each Originator during the period commencing on the Monthly Purchase Report Date
immediately preceding such Monthly Purchase Report Date to (but not including) such Monthly
Purchase Report Date (in the case of each subsequent Purchase Report); and

          (c) the calculations of reductions of the Purchase Price for any Receivables as provided in
Section 3.3 (a) and (b).

     SECTION 2.2 Calculation of Purchase Price. The “Purchase Price” to be paid to
each Originator for the Receivables that are purchased hereunder from such Originator shall be
determined in accordance with the following formula:

	 	 	 	 	 	 	 
	 

	 	PP
	 	=
	 	OB x FMVD
	 
	 	 	 	 	 	 
	 

	 	where:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	PP
	 	=
	 	Purchase Price for each Receivable as calculated on the
relevant Payment Date.
	 
	 	 	 	 	 	 
	 

	 	OB
	 	=
	 	The Outstanding Balance of such Receivable on the relevant
Payment Date.

					
	 	 	 	 	 
	 
	 	4
	 	Purchase and Sale Agreement

 

 

	 	 	 	 	 	 	 
	 

	 	FMVD
	 	=
	 	Fair Market Value Discount, as measured on such Payment
Date, which is equal to the quotient (expressed as
percentage) of (a) one divided by (b) the sum of (i) one,
plus (ii) the product of (A) the Prime Rate on such
Payment Date, and (B) a fraction, the numerator of which
is the Days’ Sales Outstanding (calculated as of the last
Business Day of the calendar month next preceding such
Payment Date) and the denominator of which is 365.

     For the avoidance of doubt, any reference in this Agreement or any Transaction Document to any
monetary amount (other than an amount denominated in U.S. dollars) shall mean the U.S. Dollar
Equivalent (as such term is defined in the Receivables Purchase Agreement) of such monetary amount
at the time of determination thereof.

     “Payment Date” means (i) the Closing Date and (ii) each Business Day thereafter that
the Originators are open for business.

     “Prime Rate” means a per annum rate equal to the “Prime Rate”
as published in the “Money Rates” section of The Wall Street Journal or if such information
ceases to be published in The Wall Street Journal, such other publication as determined by the
Administrator in its sole discretion.

ARTICLE III

PAYMENT OF PURCHASE PRICE

     SECTION 3.1 Contribution of Receivables and Initial Purchase Price Payment.

          (a) On the Closing Date, Cooper shall, and hereby does, contribute to the capital of the
Company, Receivables and Related Rights consisting of each Receivable of Cooper that existed and
was owing to Cooper on the Closing Date beginning with the oldest of such Receivables and
continuing chronologically thereafter such that the aggregate Outstanding Balance of all such
Contributed Receivables shall be equal to $10,000,000.

          (b) On the terms and subject to the conditions set forth in this Agreement, the Company agrees
to pay to each Originator the Purchase Price for the purchase to be made from such Originator on
the Closing Date partially in cash (in an amount to be agreed between the Company and such
Originator and set forth in the initial Purchase Report) and partially by
issuing a promissory note in the form of Exhibit B to such Originator with an initial
principal balance equal to the remaining Purchase Price (each such promissory note, as it may be
amended, supplemented, endorsed or otherwise modified from time to time, together with all
promissory notes issued from time to time in substitution therefor or renewal thereof in accordance
with the Transaction Documents, each being herein called a “Company Note”).

     SECTION 3.2 Subsequent Purchase Price Payments. On each Payment Date subsequent to
the Closing Date, on the terms and subject to the conditions set forth in this Agreement, the
Company shall pay to each Originator the Purchase Price for the Receivables generated by such
Originator on such Payment Date:

					
	 	 	 	 	 
	 
	 	5
	 	Purchase and Sale Agreement

 

 

     (a) First, in cash to the extent the Company has cash available therefor and
such payment is not prohibited under the Receivables Purchase Agreement; and

     (b) Second, to the extent any portion of the Purchase Price remains unpaid, the
principal amount outstanding under the applicable Company Note shall be automatically
increased by an amount equal to such remaining Purchase Price.

The Servicer shall make all appropriate record keeping entries with respect to each of the Company
Notes to reflect the foregoing payments and reductions made pursuant to Section 3.3, and
the Servicer’s books and records shall constitute rebuttable presumptive evidence of the principal
amount of, and accrued interest on, each of the Company Notes at any time. Each Originator hereby
irrevocably authorizes the Servicer to mark the Company Notes “CANCELED” and to return such Company
Notes to the Company upon the final payment thereof after the occurrence of the Purchase and Sale
Termination Date.

     SECTION 3.3 Settlement as to Specific Receivables and Dilution.

          (a) If, (i) on the day of purchase or contribution of any Receivable from an Originator
hereunder, any of the representations or warranties set forth in Sections 5.10,
5.15 and 5.17 are not true with respect to such Receivable or (ii) as a result of
any action or inaction (other than solely as a result of the failure to collect such Receivable due
to a discharge in bankruptcy or similar insolvency proceeding or other credit related reasons with
respect to the relevant Obligor) of such Originator, on any subsequent day, any of such
representations or warranties set forth in Sections 5.10, 5.15 and 5.17 is
no longer true with respect to such Receivable, then the Purchase Price (or in the case of a
Contributed Receivable the Outstanding Balance of such Receivable (the “Contributed
Value”)), with respect to such Receivable shall be reduced by an amount equal to the
Outstanding Balance of such Receivable and shall be accounted to such Originator as provided in
clause (c) below; provided, that if the Company thereafter receives payment on
account of Collections due with respect to such Receivable, the Company promptly shall deliver such
funds to such Originator.

          (b) If, on any day, the Outstanding Balance of any Receivable (including any Contributed
Receivable) purchased or contributed hereunder is reduced or adjusted as a result of any defective,
rejected, returned goods or services, or any discount or other adjustment made by
any Originator, the Company or the Servicer or any setoff or dispute between any Originator or
the Servicer and an Obligor as indicated on the books of the Company (or, for periods prior to the
Closing Date, the books of such Originator), then the Purchase Price or Contributed Value, as the
case may be, with respect to such Receivable shall be reduced by the amount of such net reduction
and shall be accounted to such Originator as provided in clause (c) below.

          (c) Any reduction in the Purchase Price or Contributed Value of any Receivable pursuant to
clause (a) or (b) above shall be applied as a credit for the account of the Company
against the Purchase Price of Receivables subsequently purchased by the Company from such
Originator hereunder; provided, however if there have been no purchases of
Receivables from such Originator (or insufficiently large purchases of Receivables) to create a
Purchase Price sufficient to so apply such credit against, the amount of such credit:

					
	 	 	 	 	 
	 
	 	6
	 	Purchase and Sale Agreement

 

 

     (i) to the extent of any outstanding principal balance under the Company Note
payable to such Originator, shall be deemed to be a payment under, and shall be
deducted from the principal amount outstanding under, the Company Note payable to
such Originator; and

     (ii) after making any deduction pursuant to clause (i) above, shall be
paid in cash to the Company by such Originator in the manner and for application as
described in the following proviso;

provided, further, that at any time (y) when a Termination Event or an Unmatured
Termination Event exists under the Receivables Purchase Agreement or (z) on or after the Purchase
and Sale Termination Date, the amount of any such credit shall be paid by such Originator to the
Company by deposit in immediately available funds into a Lock-Box Account for application by the
Servicer to the same extent as if Collections of the applicable Receivable in such amount had
actually been received on such date.

     SECTION 3.4 Reconveyance of Receivables. In the event that an Originator has paid to
the Company the full Outstanding Balance of any Receivable pursuant to Section 3.3, the
Company shall reconvey such Receivable to such Originator, without representation or warranty, but
free and clear of all liens, security interests, charges, and encumbrances created by the Company.

ARTICLE IV

CONDITIONS OF PURCHASES

     SECTION 4.1 Conditions Precedent to Initial Purchase. The initial purchase hereunder
is subject to the condition precedent that the Company and the Administrator (as the Company’s
assignee) and each Purchaser Agent shall have received, on or before the Closing Date, the
following, each (unless otherwise indicated) dated the Closing Date, and each in form and substance
satisfactory to the Company and the Administrator (as the Company’s assignee) and each Purchaser
Agent:

          (a) A copy of the resolutions of the board of directors or managers of each Originator
approving the Transaction Documents to be executed and delivered by it and the transactions
contemplated hereby and thereby, certified by the Secretary or Assistant Secretary of such
Originator;

          (b) Good standing certificates for each Originator issued as of a recent date acceptable to
the Company and the Administrator (as the Company’s assignee) by the Secretary of State of the
jurisdiction of such Originator’s organization and each jurisdiction where such Originator is
qualified to transact business;

          (c) A certificate of the Secretary or Assistant Secretary of each Originator certifying the
names and true signatures of the officers authorized on such Person’s behalf to sign the
Transaction Documents to be executed and delivered by it (on which certificate the Servicer, the
Company and the Administrator (as the Company’s assignee) may conclusively rely until such time as
the Servicer, the Company and the Administrator (as the Company’s

					
	 	 	 	 	 
	 
	 	7
	 	Purchase and Sale Agreement

 

 

assignee) shall receive from such
Person a revised certificate meeting the requirements of this clause (c));

          (d) The certificate or articles of incorporation or other organizational document of each
Originator duly certified by the Secretary of State of the jurisdiction of such Originator’s
organization as of a recent date, together with a copy of the by-laws of such Originator, each duly
certified by the Secretary or an Assistant Secretary of such Originator;

          (e) Originals of the proper financing statements (Form UCC-1) that have been duly authorized
and name each Originator as the debtor/seller and the Company as the buyer/assignor (and the
Administrator, for the benefit of the Purchasers, as secured party/assignee) of the Receivables
generated by such Originator as may be necessary or, in the Company’s or the Administrator’s
opinion, desirable under the UCC of all appropriate jurisdictions to perfect the Company’s
ownership interest in all Receivables and such other rights, accounts, instruments and moneys
(including, without limitation, Related Security) in which an ownership or security interest has
been assigned to it hereunder;

          (f) A written search report from a Person satisfactory to the Company and the Administrator
(as the Company’s assignee) listing all effective financing statements that name the Originators as
debtors or sellers and that are filed in all jurisdictions in which filings may be made against
such Person pursuant to the applicable UCC, together with copies of such financing statements (none
of which, except for those described in the foregoing clause (e) (and/or released or
terminated as the case may be prior to the date hereof), shall cover any Receivable or any Related
Rights which are to be sold to the Company hereunder), and tax and judgment lien search reports
from a Person satisfactory to the Company showing no evidence of such liens filed against any
Originator;

          (g) A favorable opinion of Shumaker, Loop & Kendrick, LLP, counsel to the Originators, in form
and substance satisfactory to the Company, the Administrator and each Purchaser Agent;

          (h) A Company Note in favor of each Originator, duly executed by the Company;

          (i) Evidence (i) of the execution and delivery by each of the parties thereto of each of the
other Transaction Documents to be executed and delivered in connection herewith and (ii) that each
of the conditions precedent to the execution, delivery and effectiveness of such other Transaction
Documents has been satisfied to the Company’s and the Administrator’s (as the Company’s assignee)
satisfaction; and

          (j) A certificate from an officer of each Originator to the effect that such Originator has
placed on the most recent, and has taken all steps reasonably necessary to ensure that there shall
be placed on subsequent, summary master control data processing reports the following legend (or
the substantive equivalent thereof): “THE RECEIVABLES DESCRIBED HEREIN HAVE BEEN SOLD TO COOPER
RECEIVABLES LLC PURSUANT TO A PURCHASE AND SALE AGREEMENT, DATED AS OF AUGUST 30, 2006, BETWEEN THE
ORIGINATORS NAMED THEREIN AND COOPER RECEIVABLES LLC; AND AN

					
	 	 	 	 	 
	 
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INTEREST IN THE RECEIVABLES DESCRIBED
HEREIN HAS BEEN GRANTED TO PNC BANK, NATIONAL ASSOCIATION, FOR THE BENEFIT OF THE PURCHASERS UNDER
THE RECEIVABLES PURCHASE AGREEMENT, DATED AS OF AUGUST 30, 2006, AMONG COOPER RECEIVABLES LLC,
COOPER TIRE & RUBBER COMPANY, AS INITIAL SERVICER, THE VARIOUS PURCHASERS AND PURCHASER AGENTS FROM
TIME TO TIME PARTY THERETO AND PNC BANK, NATIONAL ASSOCIATION, AS ADMINISTRATOR.”

     SECTION 4.2 Certification as to Representations and Warranties. Each Originator, by
accepting the Purchase Price related to each purchase of Receivables generated by such Originator,
shall be deemed to have certified that the representations and warranties contained in Article
V, as from time to time amended in accordance with the terms hereof, are true and correct on
and as of such day, with the same effect as though made on and as of such day (except for
representations and warranties which apply to an earlier date, in which case such representations
and warranties shall be true and correct as of such earlier date).

     SECTION 4.3 Additional Originators. Additional Persons may be added as Originators
hereunder, with the prior written consent of the Company, the Administrator and each Purchaser
Agent; provided that following conditions are satisfied on or before the date of such
addition:

          (a) The Servicer shall have given the Company, the Administrator and each Purchaser Agent at
least thirty days prior written notice of such proposed addition and the identity of the proposed
additional Originator and shall have provided such other information with respect to such proposed
additional Originator as the Administrator or any Purchaser Agent may reasonably request;

          (b) such proposed additional Originator has executed and delivered to the Company, the
Administrator and each Purchaser Agent an agreement substantially in the form attached hereto as
Exhibit C (a “Joinder Agreement”);

          (c) such proposed additional Originator has delivered to the Company and the Administrator (as
the Company’s assignee) and each Purchaser Agent each of the documents with respect to such
Originator described in Sections 4.1 and 4.2, in each case in form and substance
satisfactory to the Company, the Administrator (as the Company’s assignee) and each Purchaser
Agent;

          (d) unless the receivables intended to be sold by such additional Originator to the Company
hereunder are Receivables, the related underlying goods of which, are and will continue to be
generated by an already existing Originator, the Administrator shall have received, to the extent
required by the securitization program of any Conduit Purchaser, a written statement from each
applicable Rating Agency confirming that the addition of such Originator will not result in a
downgrade or withdrawal of the current ratings of the Notes; and

          (e) no Purchase and Sale Termination Date shall have occurred and be continuing.

ARTICLE V

REPRESENTATIONS AND WARRANTIES OF THE ORIGINATORS

					
	 	 	 	 	 
	 
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     In order to induce the Company to enter into this Agreement and to make purchases hereunder,
each Originator hereby represents and warrants with respect to itself that each representation and
warranty concerning it or the Receivables sold or contributed by it hereunder, that is contained in
the Receivables Purchase Agreement is true and correct, and hereby makes the representations and
warranties set forth in this Article V.

     SECTION 5.1 Existence and Power. Such Originator is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its organization, and has all power and
authority and all governmental licenses, authorizations, consents and approvals required to carry
on its business in each jurisdiction in which its business is conducted.

     SECTION 5.2 Company and Governmental Authorization, Contravention. The execution,
delivery and performance by such Originator of this Agreement are within such Originator’s company
powers, have been duly authorized by all necessary company action, require no action by or in
respect of, or filing with (other than the filing of the UCC financing statements and continuation
statements contemplated hereunder and disclosures and filings under applicable securities laws),
any governmental body, agency or official, and, do not contravene, or constitute a default under,
any provision of applicable law or regulation or of the organizational documents of such Originator
or of any agreement, judgment, injunction, order, decree or other instrument binding upon such
Originator or result in the creation or imposition of any lien (other than liens in favor of the
Company and Administrator under the Transaction Documents) on assets of such Originator or any of
its Subsidiaries.

     SECTION 5.3 Binding Effect of Agreement. This Agreement and each of the other
Transaction Documents to which it is a party constitutes the legal, valid and binding obligation of
such Originator enforceable against such Originator in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization or other similar
laws affecting the enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether enforceability is considered in a proceeding in equity or at law.

     SECTION 5.4 Accuracy of Information. All information heretofore furnished by such
Originator to the Company, the Administrator or any Purchaser Agent pursuant to or in connection
with this Agreement or any other Transaction Document or any transaction contemplated hereby or
thereby is, and all such information hereafter furnished by such Originator to the Company, the
Administrator or any Purchaser Agent in writing pursuant to this Agreement or any Transaction
Document will be, true and accurate in all material respects on the date such information is stated
or certified.

     SECTION 5.5 Actions, Suits. Except as set forth in Schedule V, there are no
actions, suits or proceedings pending or, to the best of such Originator’s knowledge, threatened
against or affecting such Originator or any of its Affiliates or their respective properties, in or
before any court, arbitrator or other body, which could reasonably be expected to have a Material
Adverse Effect upon the ability of such Originator (or such Affiliate) to perform its obligations
under this Agreement or any other Transaction Document to which it is a party.

     SECTION 5.6 Taxes. Such Originator has filed or caused to be filed all U.S. federal
income tax returns and all other material returns, statements, forms and reports for taxes,

					
	 	 	 	 	 
	 
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domestic or foreign, required to be filed by it and has paid all taxes payable by it which have
become due or any assessments made against it or any of its property and all other material taxes,
fees or other charges imposed on it or any of its property by any Governmental Authority.

     SECTION 5.7 Compliance with Applicable Laws. Such Originator is in compliance with
the requirements of all applicable laws, rules, regulations and orders of all governmental
authorities except to the extent that the failure to comply would not be reasonably expected to
have a Material Adverse Effect. In addition, no Receivable sold or contributed hereunder
contravenes any laws, rules or regulations applicable thereto or to such Originator.

     SECTION 5.8 Reliance on Separate Legal Identity. Such Originator acknowledges that
each of the Purchasers, the Purchaser Agents and the Administrator are entering into the
Transaction Documents to which they are parties in reliance upon the Company’s identity as a legal
entity separate from such Originator.

     SECTION 5.9 Investment Company. Such Originator is not an “investment company,” or a
company “controlled” by an “investment company” within the meaning of the Investment Company Act of
1940, as amended.

     SECTION 5.10 Perfection. Immediately preceding its sale of each Receivable hereunder,
such Originator was the owner of such Receivable sold or purported to be sold, free and clear of
any Adverse Claims, and each such sale hereunder constitutes a valid sale, transfer and assignment
of all of such Originator’s right, title and interest in, to and under the Receivables sold by it,
free and clear of any Adverse Claims. On or before the date hereof and before the
generation by such Originator of any new Receivable to be sold or otherwise conveyed
hereunder, all financing statements and other documents, if any, required to be recorded or filed
in order to perfect and protect the Company’s ownership interest in such Receivable against all
creditors of and purchasers from such Originator will have been duly filed in each filing office
necessary for such purpose, and all filing fees and taxes, if any, payable in connection with such
filings shall have been paid in full.

     SECTION 5.11 Creation of Receivables. Such Originator has exercised at least the same
degree of care and diligence in the creation of the Receivables sold, contributed or otherwise
transferred hereunder as it has exercised in connection with the creation of receivables
originated by it and not so transferred hereunder.

     SECTION 5.12 Credit and Collection Policy. Such Originator has complied in all
material respects with its Credit and Collection Policy in regard to each Receivable sold or
contributed by it hereunder and related Contract.

     SECTION 5.13 Enforceability of Contracts. Each Contract related to any Receivable
sold or contributed by such Originator hereunder is effective to create, and has created, a legal,
valid and binding obligation of the related Obligor to pay the outstanding balance of such
Receivable, enforceable against the Obligor in accordance with its terms, without being subject to
any defense, deduction, offset or counterclaim and such Originator has fully performed its
obligations under such Contract.

					
	 	 	 	 	 
	 
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     SECTION 5.14 Location and Offices. As of the date hereof, such Originator’s location
(as such term is defined in the applicable UCC) is at the address set forth on Schedule II
hereto, and such location has not been changed for at least four months before the date hereof.
The offices where such Originator keeps all records concerning the Receivables are located at the
addresses set forth on Schedule III hereto or such other locations of which the Company and
the Administrator (as the Company’s assignee) has been given written notice in accordance with the
terms hereof.

     SECTION 5.15 Good Title. Upon the creation of each new Receivable sold or otherwise
conveyed or purported to be conveyed hereunder and on the Closing Date for then existing
Receivables, the Company shall have a valid and perfected first priority ownership interest in each
Receivable sold or contributed to it hereunder, free and clear of any Adverse Claim.

     SECTION 5.16 Names. Except as described in Schedule IV, such Originator has
not used any corporate or company names, tradenames or assumed names other than its name set forth
on the signature pages of this Agreement.

     SECTION 5.17 Nature of Receivables. Each Pool Receivable purchased or contributed
hereunder and included in the calculation of Net Receivables Pool Balance is, on the date of such
purchase or contribution, an Eligible Receivable.

     SECTION 5.18 Bulk Sales, Margin Regulations, No Fraudulent Conveyance, Investment
Company. No transaction contemplated hereby requires compliance with or will become subject to
avoidance under any bulk sales act or similar law. No use of funds obtained by such Originator
hereunder will conflict with or contravene Regulation T, U or X of the Federal Reserve Board. No
purchase hereunder constitutes a fraudulent transfer or conveyance under any United States federal
or applicable state bankruptcy or insolvency laws or is otherwise void or voidable under such or
similar laws or principles or for any other reason.

     SECTION 5.19 Financial Condition.

          (a) The consolidated balance sheets of Cooper and its consolidated subsidiaries as of December
31, 2005 and the related statements of income and shareholders’ equity of Cooper and its
consolidated subsidiaries for the fiscal year then ended certified by its independent accountants,
copies of which have been furnished to the Company and the Administrator (as the Company’s
assignee), present fairly in all material respects the consolidated financial position of Cooper
and its consolidated subsidiaries for the period ended on such date, all in accordance with GAAP
consistently applied; and since such date no event has occurred that has had, or could reasonably
be expected to have, a Material Adverse Effect.

          (b) On the date hereof, and on the date of each purchase or contribution hereunder (both
before and after giving effect to such purchase or contribution), such Originator shall be Solvent.

     SECTION 5.20 Licenses, Contingent Liabilities, and Labor Controversies.

					
	 	 	 	 	 
	 
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          (a) Such Originator has not failed to obtain any licenses, permits, franchises or other
governmental authorizations necessary to the ownership of its properties or to the conduct of its
business.

          (b) There are no labor controversies pending against such Originator that have had (or could
be reasonably expected to have) a Material Adverse Effect.

     SECTION 5.21 Reaffirmation of Representations and Warranties by the Originator. On
each day that a new Receivable is created, and when sold or contributed to the Company hereunder,
such Originator shall be deemed to have certified that all representations and warranties set forth
in this Article V are true and correct on and as of such day (except for representations
and warranties which apply as to an earlier date (in which case such representations and warranties
shall be true and correct as of such earlier date)).

ARTICLE VI

COVENANTS OF THE ORIGINATORS

     SECTION 6.1 Affirmative Covenants. From the date hereof until the first day following
the Purchase and Sale Termination Date, each Originator will, unless the Administrator and the
Company shall otherwise consent in writing, perform the following:

          (a) General Information. Such Originator shall furnish to the Company, the
Administrator and each Purchaser Agent such information as such Person may from time to time
reasonably request.

          (b) Furnishing of Information and Inspection of Records. Such Originator will furnish
to the Company, the Administrator and each Purchaser Agent from time to time such information with
respect to the Receivables as such Person may reasonably request. Such Originator will, at such
Originator’s expense, at any time and from time to time during regular business hours with prior
written notice (i) permit the Company, the Administrator or any Purchaser Agent, or their
respective agents or representatives, (A) to examine and make copies of and abstracts from all
books and records relating to the Receivables or other Pool Assets and (B) to visit the offices and
properties of such Originator for the purpose of examining such books and records, and to discuss
matters relating to the Receivables, other Related Rights or such Originator’s performance
hereunder or under the other Transaction Documents to which it is a party with any of the officers,
directors, employees or independent public accountants of such Originator (provided that
representatives of such Originator are present during such discussions) having knowledge of such
matters and (ii) without limiting the provisions of clause (i) above, from time to time
during regular business hours, at Originator’s expense, upon reasonable prior written notice from
the Company, the Administrator or any Purchaser Agent, permit certified public accountants or other
auditors acceptable to the Administrator and the Purchaser Agents to conduct, a review of its books
and records with respect to the Receivables.

          (c) Keeping of Records and Books. Such Originator will have and maintain (i)
administrative and operating procedures (including an ability to recreate records if originals are
destroyed), (ii) adequate facilities, personnel and equipment and (iii) all records and other
information reasonably necessary for collection of the Receivables originated by such Originator

					
	 	 	 	 	 
	 
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(including records adequate to permit the daily identification of each new such Receivable and all
Collections of, and adjustments to, each existing such Receivable). Such Originator will give the
Company, the Administrator and each Purchaser Agent prior notice of any change in such
administrative and operating procedures that causes them to be materially different from the
procedures described to the Company, the Administrator and each Purchaser Agent on or before the
date hereof as such Originator’s then existing or planned administrative and operating procedures
for collecting Receivables.

          (d) Performance and Compliance with Receivables and Contracts. Such Originator will
at its expense timely and fully perform and comply with all provisions, covenants and other
promises required to be observed by it under all Contracts or other documents or agreements related
to the Receivables.

          (e) Credit and Collection Policy. Such Originator will comply with its Credit and
Collection Policy in regard to each Receivable originated by it and any related Contract or other
related document or agreement.

          (f) Receivable Purchase Agreement. Such Originator will perform and comply with each
covenant and other undertaking in the Receivables Purchase Agreement that
the Company undertakes to cause such Originator to perform, subject to any grace periods for
such performance provided for in the Receivables Purchase Agreement.

          (g) Preservation of Existence. Such Originator shall preserve and maintain its
existence as a corporation, partnership or limited liability company, as applicable, and all
rights, franchises and privileges in the jurisdiction of its organization, and qualify and remain
qualified in good standing as a foreign corporation, partnership or limited liability company, as
applicable, in each jurisdiction where the failure to preserve and maintain such existence, rights,
franchises, privileges and qualification would be reasonably expected to have a Material Adverse
Effect.

          (h) Location of Records. Keep its location (as such term is defined in the applicable
UCC), and the offices where it keeps its records concerning or related to Receivables, at the
address(es) referred to in Schedule II or Schedule III, respectively, or, upon 30
days’ prior written notice to the Company, the Administrator (as the Company’s assignee) and each
Purchaser Agent, at such other locations in jurisdictions where all action required by Section
7.3 shall have been taken and completed.

          (i) Post Office Boxes. On or prior to the date hereof, deliver to the Servicer (on
behalf of the Company) a certificate from an authorized officer of such Originator to the effect
that (i) the names of the renter of all post office boxes into which the Originator has or will
direct Obligors to send Collections have been changed to the name of the Company (unless such post
office boxes are in the name of the relevant Lock-Box Banks) and (ii) all relevant postmasters have
been notified that each of the Servicer and the Administrator are authorized to collect mail
delivered to such post office boxes (unless such post office boxes are in the name of the relevant
Lock-Box Banks).

     SECTION 6.2 Reporting Requirements. From the date hereof until the first day
following the Purchase and Sale Termination Date, each Originator will, unless the Company,

					
	 	 	 	 	 
	 
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the Administrator and the Majority Purchaser Agents shall otherwise consent in writing, furnish to the
Company, the Administrator and the Majority Purchaser Agents:

          (a) Purchase and Sale Termination Events. As soon as possible, and in any event
within three (3) Business Days after such Originator becomes aware of the occurrence of each
Purchase and Sale Termination Event or each event which with notice or the passage of time or both
would become a Purchase and Sale Termination Event (an “Unmatured Purchase and Sale Termination
Event”), a written statement of the chief financial officer or chief accounting officer of such
Originator describing such Purchase and Sale Termination Event or Unmatured Purchase and Sale
Termination Event and the action that such Originator proposes to take with respect thereto, in
each case in reasonable detail;

          (b) Proceedings. As soon as possible and in any event within three (3) Business Days
after such Originator becomes aware thereof, written notice of (i) litigation, investigation or
proceeding of the type described in Section 5.5 not previously disclosed to the Company,
the Administrator and each Purchaser Agent which would reasonably be expected to
have a Material Adverse Effect, and (ii) all material adverse developments that have occurred
with respect to any previously disclosed litigation, proceedings and investigations; and

          (c) Other. Promptly, from time to time, such other information, documents, records or
reports respecting the Receivables or the conditions or operations, financial or otherwise, of such
Originator as the Company, the Administrator or any Purchaser Agent may from time to time
reasonably request in order to protect the interests of the Company, the Purchasers, the Purchaser
Agents or the Administrator under or as contemplated by the Transaction Documents.

     SECTION 6.3 Negative Covenants. From the date hereof until the first date following
the Purchase and Sale Termination Date when no Aggregate Capital or Discount with respect to the
Purchased Interest remains outstanding and all obligations of such Originator to the Company and
its assigns have been satisfied in full, each Originator agrees that, unless the Company, the
Administrator and the Majority Purchaser Agents shall otherwise consent in writing, it shall not:

          (a) Sales, Liens, Etc. Except as otherwise provided herein or in any other
Transaction Document, sell, assign (by operation of law or otherwise) or otherwise dispose of, or
create or suffer to exist any Adverse Claim upon or with respect to, any Receivable sold,
contributed or otherwise conveyed or purported to be sold, contributed or otherwise conveyed
hereunder or related Contract or Related Security, or any interest therein, or any Collections
thereon, or assign any right to receive income in respect thereof.

          (b) Extension or Amendment of Receivables. Except as otherwise permitted in
Section 4.2(a) of the Receivables Purchase Agreement and the applicable Credit and
Collection Policy, extend, amend or otherwise modify the terms of any Receivable in any material
respect generated by it that is sold, contributed or otherwise conveyed hereunder, or amend, modify
or waive, in any material respect, the provisions of any Contract related thereto.

					
	 	 	 	 	 
	 
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          (c) Change in Business or Credit and Collection Policy. (i) Make any material change
in the character of its business, or (ii) make any change in its Credit and Collection Policy that
would reasonably be expected to adversely affect the collectibility of the Receivables, the
enforceability of any related Contract or its ability to perform its obligations under the related
Contract or the Transaction Documents, in the case of either (i) or (ii) above, without the prior
written consent of the Administrator and each Purchaser Agent. No Originator shall make any change
in any Credit and Collection Policy without giving prior written notice thereof to the
Administrator and each Purchaser Agent.

          (d) Receivables Not to be Evidenced by Promissory Notes or Chattel Paper. Except as
otherwise provided in the Receivables Purchase Agreement in regard to servicing, take any action to
cause or permit any Receivable generated by it that is sold or contributed by it hereunder to
become evidenced by any “instrument” or “chattel paper” (as defined in the applicable UCC).

          (e) Mergers, Acquisitions, Sales, etc. (i) Be a party to any merger, consolidation or
other restructuring, except a merger, consolidation or other restructuring where the Company, the
Administrator and each Purchaser Agent have each (A) received 30 days’ prior notice thereof, (B)
consented in writing thereto, (C) received executed copies of all documents, certificates and
opinions (including, without limitation, opinions relating to bankruptcy and UCC matters) as the
Company, the Administrator or any Purchaser Agent shall request and (D) been satisfied that all
other action to perfect and protect the interests of the Company and the Administrator, on behalf
of the Purchasers, in and to the Receivables to be sold by it hereunder and other Related Rights,
as requested by the Company, the Administrator or any Purchaser Agent shall have been taken by, and
at the expense of such Originator (including the filing of any UCC financing statements, the
receipt of certificates and other requested documents from public officials and all such other
actions required pursuant to Section 7.3) or (ii) directly or indirectly sell, transfer,
assign, convey or lease (A) whether in one or a series of transactions, all or substantially all of
its assets or (B) any Receivables or any interest therein (other than pursuant to this Agreement).

          (f) Lock-Box Banks. Make any changes in its instructions to Obligors regarding
Collections on Receivables sold, contributed or otherwise conveyed by it hereunder or add or
terminate any bank as a Lock-Box Bank unless the requirements of Section 1(f) of
Exhibit IV to the Receivables Purchase Agreement have been met; provided that no later than
ninety (90) days from the Closing Date, the Company shall have terminated (or caused to be
terminated) the SunTrust Account.

          (g) Accounting for Purchases. Account for or treat (whether in financial statements
or otherwise) the transactions contemplated hereby in any manner other than as sales of the
Receivables and Related Rights by such Originator to the Company.

          (h) Transaction Documents. Enter into, execute, deliver or otherwise become bound
after the Closing Date by any agreement, instrument, document or other arrangement that restricts
the right of such Originator to amend, supplement, amend and restate or otherwise modify, or to
extend or renew, or to waive any right under, this Agreement or any other Transaction Document.

      

					
	 
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     SECTION 6.4 Substantive Consolidation. Each Originator hereby acknowledges that this
Agreement and the other Transaction Documents are being entered into in reliance upon the Company’s
identity as a legal entity separate from such Originator and its Affiliates. Therefore, from and
after the date hereof, each Originator shall take all reasonable steps necessary to make it
apparent to third Persons that the Company is an entity with assets and liabilities distinct from
those of such Originator and any other Person, and is not a division of such Originator, its
Affiliates or any other Person. Without limiting the generality of the foregoing and in addition
to and consistent with the other covenants set forth herein, such Originator shall take such
actions as shall be required in order that:

          (a) such Originator shall not be involved in the day to day management of the Company;

          (b) such Originator shall maintain separate corporate records and books of account from
the Company and otherwise will observe corporate formalities and have a separate area from
the Company for its business (which may be located at the same address as the Company, and,
to the extent that it and the Company have offices in the same location, there shall be a
fair and appropriate allocation of overhead costs between them, and each shall bear its fair
share of such expenses);

          (c) the financial statements and books and records of such Originator shall be prepared
after the date of creation of the Company to reflect and shall reflect the separate
existence of the Company; provided, that the Company’s assets and liabilities may be
included in a consolidated financial statement issued by an affiliate of the Company;
provided, however, that any such consolidated financial statement or the
notes thereto shall make clear that the Company’s assets are not available to satisfy the
obligations of such affiliate;

          (d) except as permitted by the Receivables Purchase Agreement, (i) such Originator
shall maintain its assets (including, without limitation, deposit accounts) separately from
the assets (including, without limitation, deposit accounts) of the Company and (ii) the
Company’s assets, and records relating thereto, have not been, are not, and shall not be,
commingled with those of the Company;

          (e) all of the Company’s business correspondence and other communications shall be
conducted in the Company’s own name and on its own stationery;

          (f) such Originator shall not act as an agent for the Company, other than Cooper in its
capacity as the Servicer, and in connection therewith, Cooper shall present itself to the
public as an agent for the Company and a legal entity separate from the Company;

          (g) such Originator shall not conduct any of the business of the Company in its own
name;

          (h) such Originator shall not pay any liabilities of the Company out of its own funds
or assets;

      

					
	 
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          (i) such Originator shall maintain an arm’s-length relationship with the Company;

          (j) such Originator shall not assume or guarantee or become obligated for the debts of
the Company or hold out its credit as being available to satisfy the obligations of the
Company;

          (k) such Originator shall not acquire obligations of the Company;

          (l) such Originator shall allocate fairly and reasonably overhead or other expenses
that are properly shared with the Company, including, without limitation, shared office
space;

          (m) such Originator shall identify and hold itself out as a separate and distinct
entity from the Company;

          (n) such Originator shall correct any known misunderstanding respecting its separate
identity from the Company;

          (o) such Originator shall not enter into, or be a party to, any transaction with the
Company, except in the ordinary course of its business and on terms which are intrinsically
fair and not less favorable to it than would be obtained in a comparable arm’s-length
transaction with an unrelated third party;

          (p) such Originator shall not pay the salaries of the Company’s employees, if any; and

          (q) to the extent not already covered in paragraphs (a) through (p) above, such
Originator shall comply and/or act in accordance with all of the other separateness
covenants set forth in Section 3 of Exhibit IV to the Receivables Purchase
Agreement.

ARTICLE VII

ADDITIONAL RIGHTS AND OBLIGATIONS

IN RESPECT OF RECEIVABLES

     SECTION 7.1 Rights of the Company. Each Originator hereby authorizes the Company,
the Servicer or their respective designees or assignees under the Receivables Purchase Agreement
(including, without limitation, the Administrator) to take any and all steps in such Originator’s
name necessary or desirable, in their respective determination, to collect all amounts due under
any and all Receivables sold, contributed or otherwise conveyed or purported to be conveyed by it
hereunder, including, without limitation, endorsing the name of such Originator on checks and other
instruments representing Collections and enforcing such Receivables and the provisions of the
related Contracts that concern payment and/or enforcement of rights to payment.

     SECTION 7.2 Responsibilities of the Originators. Anything herein to the contrary
notwithstanding:

      

					
	 
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          (a) Collection Procedures. Each Originator agrees to direct its respective Obligors
to make payments of Receivables sold, contributed or otherwise conveyed or purported to be conveyed
by it hereunder directly to a post office box related to the relevant Lock-Box Account at a
Lock-Box Bank. Each Originator further agrees to transfer any Collections of Receivables sold or
conveyed by it hereunder that it receives directly to a Lock-Box Account within two (2) Business
Days of receipt thereof, and agrees that all such Collections shall be deemed to be received in
trust for the Company and the Administrator (for the benefit of the Purchasers).

          (b) Each Originator shall perform its obligations hereunder, and the exercise by the Company
or its designee of its rights hereunder shall not relieve such Originator from such obligations.

          (c) None of the Company, the Servicer, the Purchasers, the Purchaser Agents or the
Administrator shall have any obligation or liability to any Obligor or any other third Person with
respect to any Receivables, Contracts related thereto or any other related agreements, nor shall
the Company, the Servicer, the Purchasers, the Purchaser Agents or the Administrator be obligated
to perform any of the obligations of such Originator thereunder.

          (d) Each Originator hereby grants to the Administrator an irrevocable power of attorney, with
full power of substitution, coupled with an interest, during the occurrence and continuation of a
Purchase and Sale Termination Event to take in the name of such Originator all steps necessary or
advisable to endorse, negotiate or otherwise realize on any writing or other right of any kind held
or transmitted by such Originator or transmitted or received by the Company (whether or not from
such Originator) in connection with any Receivable sold, contributed or otherwise conveyed or
purported to be conveyed by it hereunder or Related Right.

     SECTION 7.3 Further Action Evidencing Purchases. Each Originator agrees that from
time to time, at its expense, it will promptly execute and deliver all further instruments and
documents, and take all further action that the Company, the Servicer, the Administrator or any
Purchaser Agent may reasonably request in order to perfect, protect or more fully evidence the
Receivables and Related Rights purchased by or contributed to the Company hereunder, or to enable
the Company to exercise or enforce any of its rights hereunder or under any other Transaction
Document. Without limiting the generality of the foregoing, upon the request of the Company, the
Administrator or any Purchaser Agent, such Originator will:

          (a) execute (if applicable), authorize and file such financing or continuation
statements, or amendments thereto or assignments thereof, and such other instruments or
notices, as may be necessary or appropriate; and

          (b) on the Closing Date and from time to time, if requested thereafter, mark the master
data processing records that evidence or list such Receivables and related Contracts with
the legend set forth in Section 4.1(j).

Each Originator hereby authorizes the Company or its designee (including, without limitation, the
Administrator) to file one or more financing or continuation statements, and amendments thereto and
assignments thereof, without the signature of such Originator, relative to all or any of

      

					
	 
	 	19
	 	Purchase and Sales Agreement

 

 

the Receivables sold, contributed or otherwise conveyed or purported to be conveyed by it hereunder
and Related Rights now existing or hereafter generated by such Originator. If any Originator fails
to perform any of its agreements or obligations under this Agreement, the Company or its designee
(including, without limitation, the Administrator) may (but shall not be required to) itself
perform, or cause the performance of, such agreement or obligation, and the expenses of the Company
or its designee (including, without limitation, the Administrator) incurred in connection therewith
shall be payable by such Originator.

     SECTION 7.4 Application of Collections. Any payment by an Obligor in respect of any
indebtedness owed by it to any Originator shall, except as otherwise specified by such Obligor or
required by applicable law and unless otherwise instructed by the Servicer (with the prior written
consent of the Administrator) or the Administrator, be applied as a Collection of any Receivable or
Receivables of such Obligor to the extent of any amounts then due and payable thereunder before
being applied to any other indebtedness of such Obligor.

ARTICLE VIII

PURCHASE AND SALE TERMINATION EVENTS

     SECTION 8.1 Purchase and Sale Termination Events. Each of the following events or
occurrences described in this Section 8.1 shall constitute a “Purchase and Sale
Termination Event”:

          (a) The Facility Termination Date (as defined in the Receivables Purchase Agreement)
shall have occurred; or

          (b) Any Originator shall fail to make when due any payment or deposit to be made by it
under this Agreement or any other Transaction Document to which it is a party and such
failure shall remain unremedied for two (2) Business Days; or

          (c) Any representation or warranty made or deemed to be made by any Originator (or any
of its officers) under or in connection with this Agreement, any other Transaction Documents
to which it is a party, or any other information or report delivered pursuant hereto or
thereto shall prove to have been incorrect or untrue in any material respect when made or
deemed made or delivered; or

          (d) Any Originator shall fail to perform or observe any other term, covenant or
agreement contained in this Agreement or any other Transaction Document to which it is a
party and, except as otherwise provided herein, such failure shall, solely to the extent
capable of cure, remain unremedied for thirty (30) days after the earlier of any such
Originator’s knowledge or notice thereof.

     SECTION 8.2 Remedies.

          (a) Optional Termination. Upon the occurrence of a Purchase and Sale Termination
Event, the Company shall have the option, by notice to the Originators (with a copy to the
Administrator), to declare the Purchase Facility as terminated.

      

					
	 
	 	20
	 	Purchase and Sales Agreement

 

 

          (b) Remedies Cumulative. Upon any termination of the Purchase Facility pursuant to
Section 8.2(a), the Company shall have, in addition to all other rights and remedies under
this Agreement, all other rights and remedies provided under the UCC of each applicable
jurisdiction and other applicable laws, which rights shall be cumulative.

ARTICLE IX

INDEMNIFICATION

     SECTION 9.1 Indemnities by the Originators. Without limiting any other rights which
the Company may have hereunder or under applicable law, each Originator, severally and for itself
alone and Cooper, jointly and severally with each Originator, hereby agrees to indemnify the
Company and each of its officers, directors, employees and agents (each of the foregoing Persons
being individually called a “Purchase and Sale Indemnified Party”), forthwith on demand,
from and against any and all damages, losses, claims, judgments, liabilities and related costs and
expenses, including reasonable attorneys’ fees and disbursements (all of the foregoing being
collectively called “Purchase and Sale Indemnified Amounts”) awarded against or incurred by
any of them arising out of or as a result of the failure of such Originator to perform its
obligations under this Agreement or any other Transaction Document, or arising out of the claims
asserted against a Purchase and Sale Indemnified Party relating to the transactions contemplated
herein or therein or the use of proceeds thereof or therefrom; excluding, however,
(i) Purchase and Sale Indemnified Amounts to the extent resulting from gross negligence or willful
misconduct on the part of such Purchase and Sale Indemnified Party, (ii) any indemnification which
has the effect of recourse for non-payment of the Receivables due to a discharge in bankruptcy or
similar insolvency proceeding or other credit related reasons with respect to the relevant Obligor
and (iii) any net income or franchise tax imposed on such Purchase and Sale Indemnified Party by
the jurisdiction under the laws of which such Purchase and Sale Indemnified Party is organized or
any political subdivision thereof. Without limiting the foregoing, and subject to the exclusions
set forth in the preceding sentence, each Originator, severally for itself alone and Cooper,
jointly and severally with each Originator, shall indemnify each Purchase and Sale Indemnified
Party for Purchase and Sale Indemnified Amounts relating to or resulting from:

          (a) the transfer by such Originator of an interest in any Receivable to any Person
other than the Company;

          (b) the breach of any representation or warranty made by such Originator (or any of its
officers) under or in connection with this Agreement or any other Transaction Document, or
any information or report delivered by Originator pursuant hereto or thereto, which shall
have been false or incorrect when made or deemed made;

          (c) the failure by such Originator to comply with any applicable law, rule or
regulation with respect to any Receivable generated by such Originator sold, contributed or
otherwise transferred or purported to be transferred hereunder or the related Contract, or
the nonconformity of any Receivable generated by such Originator sold, contributed or
otherwise transferred or purported to be transferred hereunder or the related Contract with
any such applicable law, rule or regulation;

      

					
	 
	 	21
	 	Purchase and Sales Agreement

 

 

          (d) the failure by such Originator to vest and maintain vested in the Company an
ownership interest in the Receivables generated by such Originator sold, contributed or
otherwise transferred or purported to be transferred hereunder free and clear of any Adverse
Claim;

          (e) the failure to file, or any delay in filing, by such Originator financing
statements or other similar instruments or documents under the UCC of any applicable
jurisdiction or other applicable laws with respect to any Receivables or purported
Receivables generated by such Originator sold, contributed or otherwise transferred or
purported to be transferred hereunder, whether at the time of any purchase or contribution
or at any subsequent time to the extent required hereunder;

          (f) any dispute, claim, offset or defense (other than discharge in bankruptcy or
similar insolvency proceeding of an Obligor or other credit related reasons) of the Obligor
to the payment of any Receivable or purported Receivable generated by such Originator sold,
contributed or otherwise transferred or purported to be transferred hereunder (including,
without limitation, a defense based on such Receivable’s or the related Contract’s not being
a legal, valid and binding obligation of such Obligor enforceable against it in accordance
with its terms), or any other claim resulting from the services related to any such
Receivable or the furnishing of or failure to furnish such services;

          (g) any product liability claim arising out of or in connection with services that are
the subject of any Receivable generated by such Originator; and

          (h) any tax or governmental fee or charge (other than any tax excluded pursuant to
clause (iii) in the proviso to the preceding sentence), all interest and penalties
thereon or with respect thereto, and all out-of-pocket costs and expenses, including the
reasonable fees and expenses of counsel in defending against the same, which are required to
be paid by reason of the purchase or ownership of the Receivables generated by such
Originator or any Related Security connected with any such Receivables.

If for any reason the indemnification provided above in this Section 9.1 is unavailable to
a Purchase and Sale Indemnified Party or is insufficient to hold such Purchase and Sale Indemnified
Party harmless, then each of the Originators, severally and for itself and Cooper, jointly and
severally with each Originator, shall contribute to the amount paid or payable by such Purchase
and Sale Indemnified Party to the maximum extent permitted under applicable law.

ARTICLE X

MISCELLANEOUS

     SECTION 10.1 Amendments, etc.

          (a) The provisions of this Agreement may from time to time be amended, modified or waived, if
such amendment, modification or waiver is in writing and executed by the Company and each
Originator, with the prior written consent of the Administrator and the Majority Purchaser Agents.

      

					
	 
	 	22
	 	Purchase and Sales Agreement

 

 

          (b) No failure or delay on the part of the Company, the Servicer, any Originator or any third
party beneficiary in exercising any power or right hereunder shall operate as a waiver thereof, nor
shall any single or partial exercise of any such power or right preclude any other or further
exercise thereof or the exercise of any other power or right. No notice to or demand on the
Company, the Servicer or any Originator in any case shall entitle it to any notice or demand in
similar or other circumstances. No waiver or approval by the Company or the Servicer under this
Agreement shall, except as may otherwise be stated in such waiver or approval, be applicable to
subsequent transactions. No waiver or approval under this Agreement shall require any similar or
dissimilar waiver or approval thereafter to be granted hereunder.

          (c) The Transaction Documents contain a final and complete integration of all prior
expressions by the parties hereto with respect to the subject matter thereof and shall constitute
the entire agreement among the parties hereto with respect to the subject matter thereof,
superseding all prior oral or written understandings.

     SECTION 10.2 Notices, etc. All notices and other communications provided for
hereunder shall, unless otherwise stated herein, be in writing (including facsimile communication)
and shall be delivered or sent by facsimile, or by overnight mail, to the intended party at the
mailing address or facsimile number of such party set forth under its name on the signature pages
hereof or at such other address or facsimile number as shall be designated by such party in a
written notice to the other parties hereto or in the case of the Administrator or any Purchaser
Agent, at their respective address for notices pursuant to the Receivables Purchase Agreement. All
such notices and communications shall be effective (i) if delivered by overnight mail, when
received, and (ii) if transmitted by facsimile, when sent, receipt confirmed by telephone or
electronic means.

     SECTION 10.3 No Waiver; Cumulative Remedies. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law. Without limiting the foregoing, each
Originator hereby authorizes the Company, at any time and from time to time, to the fullest extent
permitted by law, to set off, against any obligations of such Originator to the Company arising in
connection with the Transaction Documents (including, without limitation, amounts payable pursuant
to Section 9.1) that are then due and payable or that are not then due and payable but have
accrued, any and all indebtedness at any time owing by the Company to or for the credit or the
account of such Originator.

     SECTION 10.4 Binding Effect; Assignability. This Agreement shall be binding upon and
inure to the benefit of the Company and each Originator and their respective successors and
permitted assigns. No Originator may assign any of its rights hereunder or any interest herein
without the prior written consent of the Company, the Administrator and each Purchaser Agent,
except as otherwise herein specifically provided. This Agreement shall create and constitute the
continuing obligations of the parties hereto in accordance with its terms, and shall remain in full
force and effect until such time as the parties hereto shall agree. The rights and remedies with
respect to any breach of any representation and warranty made by any Originator pursuant to
Article V and the indemnification and payment provisions of Article IX and
Section 10.6 shall be continuing and shall survive any termination of this Agreement.

      

					
	 
	 	23
	 	Purchase and Sales Agreement

 

 

     SECTION 10.5 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

     SECTION 10.6 Costs, Expenses and Taxes. In addition to the obligations of the
Originators under Article IX, each Originator, severally and for itself alone and Cooper,
jointly and severally with each Originator, agrees to pay on demand:

          (a) to the Company (and any successor and permitted assigns thereof) all reasonable
costs and expenses incurred by such Person in connection with the enforcement of this
Agreement and the other Transaction Documents; and

          (b) all stamp and other taxes and fees payable in connection with the execution,
delivery, filing and recording of this Agreement or the other Transaction Documents to be
delivered hereunder, and agrees to indemnify each Purchase and Sale Indemnified Party
against any liabilities with respect to or resulting from any delay in paying or omitting to
pay such taxes and fees.

     SECTION 10.7 SUBMISSION TO JURISDICTION. EACH PARTY HERETO HEREBY IRREVOCABLY (a)
SUBMITS TO THE NON-EXCLUSIVE JURISDICTION OF ANY COURT OF THE STATE OF NEW YORK OR THE FEDERAL
COURT OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK OVER ANY ACTION OR PROCEEDING
ARISING OUT OF OR RELATING TO ANY TRANSACTION DOCUMENT; (b) AGREES THAT ALL CLAIMS IN RESPECT OF
SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH STATE OR UNITED STATES FEDERAL COURT;
(c) WAIVES, TO THE FULLEST EXTENT IT MAY EFFECTIVELY DO SO, THE DEFENSE OF AN INCONVENIENT FORUM TO
THE MAINTENANCE OF SUCH ACTION OR PROCEEDING; (d) IRREVOCABLY CONSENTS TO THE SERVICE OF ANY AND
ALL PROCESS IN ANY SUCH ACTION OR PROCEEDING BY THE MAILING OF COPIES OF SUCH PROCESS TO SUCH
PERSON AT ITS ADDRESS SPECIFIED IN SECTION 10.2; AND (e) AGREES THAT A FINAL JUDGMENT IN
ANY SUCH ACTION OR PROCEEDING SHALL BE CONCLUSIVE AND MAY BE ENFORCED IN OTHER JURISDICTIONS BY
SUIT ON THE JUDGMENT OR IN ANY OTHER MANNER PROVIDED BY LAW. NOTHING IN THIS SECTION 10.7
SHALL AFFECT THE COMPANY’S RIGHT TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW OR TO
BRING ANY ACTION OR PROCEEDING AGAINST ANY ORIGINATOR OR ITS PROPERTY IN THE COURTS OF ANY OTHER
JURISDICTIONS.

     SECTION 10.8 WAIVER OF JURY TRIAL. EACH PARTY HERETO WAIVES ANY RIGHT TO A TRIAL BY
JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER OR RELATING TO THIS
AGREEMENT, ANY OTHER TRANSACTION DOCUMENT, OR ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT
DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR ARISING FROM ANY
RELATIONSHIP EXISTING IN CONNECTION WITH THIS AGREEMENT OR ANY OTHER TRANSACTION DOCUMENT, AND
AGREES THAT (a) ANY SUCH ACTION OR PROCEEDING SHALL

      

					
	 
	 	24
	 	Purchase and Sales Agreement

 

 

BE TRIED BEFORE A COURT AND NOT BEFORE A JURY AND (b) ANY PARTY HERETO (OR ANY ASSIGNEE OR
THIRD PARTY BENEFICIARY OF THIS AGREEMENT) MAY FILE AN ORIGINAL COUNTERPART OR A COPY OF THIS
AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF ANY OTHER PARTY OR PARTIES HERETO TO
WAIVER OF ITS OR THEIR RIGHT TO TRIAL BY JURY.

     SECTION 10.9 Captions and Cross References; Incorporation by Reference. The various
captions (including, without limitation, the table of contents) in this Agreement are included for
convenience only and shall not affect the meaning or interpretation of any provision of this
Agreement. References in this Agreement to any underscored Section or Exhibit are to such Section
or Exhibit of this Agreement, as the case may be. The Exhibits hereto are hereby incorporated by
reference into and made a part of this Agreement.

     SECTION 10.10 Execution in Counterparts. This Agreement may be executed in any number
of counterparts and by different parties hereto in separate counterparts, each of which when so
executed shall be deemed to be an original and all of which when taken together shall constitute
one and the same Agreement.

     SECTION 10.11 Acknowledgment and Agreement. By execution below, each Originator
expressly acknowledges and agrees that all of the Company’s rights, title, and interests in, to,
and under this Agreement (but not its obligations), shall be assigned by the Company to the
Administrator (for the benefit of the Purchasers) pursuant to the Receivables Purchase Agreement,
and each Originator consents to such assignment. Each of the parties hereto acknowledges and
agrees that the Purchasers, the Purchaser Agents and the Administrator are third party
beneficiaries of the rights of the Company arising hereunder and under the other Transaction
Documents to which any Originator is a party.

     SECTION 10.12 No Proceeding. Each Originator hereby agrees that it will not
institute, or join any other Person in instituting, against the Company any Insolvency Proceeding
so long as any of the Company Notes remains outstanding and for at least one year and one day
following the day on which the aggregate outstanding principal amount of each Company Note is paid
in full. Each Originator further agrees that notwithstanding any provisions contained in this
Agreement to the contrary, the Company shall not, and shall not be obligated to, pay any amount in
respect of any Company Note or otherwise to such Originator pursuant to this Agreement unless the
Company has received funds which may, subject to Section 1.4 of the Receivables Purchase Agreement,
be used to make such payment. Any amount which the Company does not pay pursuant to the operation
of the preceding sentence shall not constitute a claim (as defined in §101 of the Bankruptcy Code)
against or corporate obligation of the Company by such Originator for any such insufficiency unless
and until the provisions of the foregoing sentence are satisfied. The agreements in this
Section 10.12 shall survive any termination of this Agreement.

     SECTION 10.13 Limited Recourse. Except as explicitly set forth herein, the
obligations of the Company under this Agreement or any other Transaction Documents to which it is a
party are solely the obligations of the Company. No recourse under any Transaction Document shall
be had against, and no liability shall attach to, any officer, employee, director, or beneficiary,

      

					
	 
	 	25
	 	Purchase and Sales Agreement

 

 

whether directly or indirectly, of the Company. The agreements in this Section 10.13
shall survive any termination of this Agreement.

[Signature Pages Follow]

      

					
	 
	 	26
	 	Purchase and Sales Agreement

 

 

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

	 	 	 	 	 	 	 
	 	 	COOPER RECEIVABLES LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles F. Nagy
 

	 	 
	 

	 	Name:
	 	Charles F. Nagy	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen O. Schroeder
 

	 	 
	 

	 	Name:
	 	Stephen O. Schroeder	 	 
	 

	 	Title:
	 	President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	COOPER RECEIVABLES LLC	 	 
	 

	 	 	 	701 Lima Avenue	 	 
	 

	 	 	 	Findlay, OH 45840	 	 
	 
	 	 	 	 	 	 
	 

	 	Attention:
	 	Charles F. Nagy, Assistant Treasurer	 	 
	 

	 	Telephone:
	 	(419) 424-4214	 	 
	 

	 	Facsimile:
	 	(419) 424-4212	 	 

					
	 
	 	S-1
	 	Purchase and Sale Agreement

 

 

	 	 	 	 	 	 	 
	 	 	ORIGINATORS:	 	 
	 
	 	 	 	 	 	 
	 	 	COOPER TIRE & RUBBER COMPANY, as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Philip G. Weaver
 

	 	 
	 

	 	Name:
	 	Philip G. Weaver	 	 
	 

	 	Title:
	 	Vice President and Chief Financial Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen O. Schroeder
 

	 	 
	 

	 	Name:
	 	Stephen O. Schroeder	 	 
	 

	 	Title:
	 	Vice President and Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	Cooper Tire & Rubber Company	 	 
	 

	 	 	 	701 Lima Avenue	 	 
	 

	 	 	 	Findlay, OH 45840	 	 
	 

	 	Attention:
	 	Philip G. Weaver, Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 
	 

	 	Telephone:
	 	(419) 424-4320	 	 
	 

	 	Facsimile:
	 	(419) 424-4212	 	 
	 
	 	 	 	 	 	 
	 

	 	Copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	James E. Kline, General Counsel	 	 
	 

	 	 	 	Cooper Tire & Rubber Company	 	 
	 

	 	 	 	701 Lima Avenue	 	 
	 

	 	 	 	Findlay, OH 45840	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Telephone: (419) 427-4757	 	 
	 

	 	 	 	Facsimile: (419) 831-6876	 	 

					
	 
	 	S-2
	 	Purchase and Sale Agreement

 

 

	 	 	 	 	 	 	 
	 	 	OLIVER RUBBER COMPANY, as an Originator	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Stephen O. Schroeder
 

	 	 
	 

	 	Name:
	 	Stephen O. Schroeder	 	 
	 

	 	Title:
	 	Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Charles F. Nagy
 

	 	 
	 

	 	Name:
	 	Charles F. Nagy	 	 
	 

	 	Title:
	 	Assistant Treasurer	 	 
	 
	 	 	 	 	 	 
	 

	 	Address:
	 	Oliver Rubber Company	 	 
	 

	 	 	 	701 Lima Avenue	 	 
	 

	 	 	 	Findlay, OH 45840	 	 
	 

	 	Attention:
	 	Philip G. Weaver, Vice President and	 	 
	 

	 	 	 	Chief Financial Officer	 	 
	 

	 	Telephone:
	 	(419) 424-4320	 	 
	 

	 	Facsimile:
	 	(419) 424-4212	 	 
	 
	 	 	 	 	 	 
	 

	 	Copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	James E. Kline, General Counsel	 	 
	 

	 	 	 	Cooper Tire & Rubber Company	 	 
	 

	 	 	 	701 Lima Avenue	 	 
	 

	 	 	 	Findlay, OH 45840	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Telephone: (419) 427-4757	 	 
	 

	 	 	 	Facsimile: (419) 831-6876	 	 

					
	 
	 	S-3
	 	Purchase and Sale Agreement

 

 

Schedule I

LIST OF ORIGINATORS

     Cooper Tire & Rubber Company

     Oliver Rubber Company

					
	 
	 	Schedule I-1
	 	Purchase and Sale Agreement

 

 

Schedule II

STATE OF ORGANIZATION OF EACH ORIGINATOR

	 	 	 
	Originator	 	State of Organization
	Cooper Tire & Rubber Company

	 	Delaware
	 
	 	 
	Oliver Rubber Company

	 	California

					
	 
	 	Schedule II-1
	 	Purchase and Sale Agreement

 

 

Schedule III

LOCATION OF BOOKS AND RECORDS OF ORIGINATORS

	 	 	 
	Originator	 	Location of Books and Records
	Cooper Tire & Rubber Company

	 	701 Lima Avenue
	 

	 	Findlay, OH 45840
	 
	 	 
	Oliver Rubber Company

	 	701 Lima Avenue
	 

	 	Findlay, OH 45840

					
	 
	 	Schedule III-1
	 	Purchase and Sale Agreement

 

 

Schedule IV

TRADE NAMES

	 	 	 
	Legal Name	 	Trade Names
	Cooper Tire & Rubber Company

	 	Cooper Tires
	 
	 	 
	Oliver Rubber Company

	 	Oliver

					
	 
	 	Schedule IV-1
	 	Purchase and Sale Agreement

 

 

Schedule V

ACTIONS/SUITS

None

					
	 
	 	Schedule V-1
	 	Purchase and Sale Agreement

 

 

Exhibit A

FORM OF PURCHASE REPORT

Originator: [Name of Originator]

Purchaser: COOPER RECEIVABLES LLC

Payment Date:

	 	 	 
	1.

	 	Outstanding Balance of Receivables Purchased:
	 
	 	 
	2.

	 	Fair Market Value Discount:
	 
	 	 
	 

	 	1/{1 + [(Prime Rate x Days’ Sales Outstanding]}
	 

	 	                                                      365
	 
	 	 
	 

	 	Where:
	 
	 	 
	 

	 	Prime Rate =                                         
	 
	 	 
	 

	 	Days’ Sales Outstanding =                                         
	 
	 	 
	3.

	 	Purchase Price (1 x 2) = $                                         

 
					
	 
	 	Exhibit A-1
	 	Purchase and Sale Agreement

 

 

Exhibit B

COMPANY NOTE

New York, New York

August 30, 2006

     FOR VALUE RECEIVED, the undersigned, COOPER RECEIVABLES LLC, a Delaware limited liability
company (the “Company”), promises to pay to COOPER TIRE & RUBBER COMPANY, a Delaware
corporation (“Originator”), on the terms and subject to the conditions set forth herein and
in the Purchase and Sale Agreement referred to below, the aggregate unpaid Purchase Price of all
Receivables purchased by the Company from Originator pursuant to such Purchase and Sale Agreement,
as such unpaid Purchase Price is shown in the records of Servicer.

     1. Purchase and Sale Agreement. This Company Note is one of the Company Notes
described in, and is subject to the terms and conditions set forth in, that certain Purchase and
Sale Agreement dated as of August 30, 2006 (as the same may be amended, supplemented, amended and
restated or otherwise modified in accordance with its terms, the “Purchase and Sale
Agreement”), among the Company, the Originator, and the various entities listed thereto as
Originators. Reference is hereby made to the Purchase and Sale Agreement for a statement of
certain other rights and obligations of the Company and the Originator.

     2. Definitions. Capitalized terms used (but not defined) herein have the meanings
assigned thereto in the Purchase and Sale Agreement and in Exhibit I to the Receivables
Purchase Agreement (as defined in the Purchase and Sale Agreement). In addition, as used herein,
the following terms have the following meanings:

     “Bankruptcy Proceedings” has the meaning set forth in clause (b)
of paragraph 9 hereof.

     “Final Maturity Date” means the Payment Date immediately following the
date that falls one year and one day after the Facility Termination Date.

     “Interest Period” means the period from and including a Payment Date
(or, in the case of the first Interest Period, the date hereof) to but excluding the
next Payment Date.

     “Senior Interests” means, collectively, (i) all accrued Discount on the
Purchased Interest, (ii) the fees referred to in Section 1.5 of the
Receivables Purchase Agreement, (iii) all amounts payable pursuant to Sections
1.7 or 6.4 of the Receivables Purchase Agreement, (iv) the Aggregate
Capital and (v) all other obligations of the Company and the Servicer that are due
and payable, to (a) the Purchasers, the Purchaser Agents, the Administrator and their
respective successors, permitted transferees and assigns arising in connection with
the Transaction Documents and (b) any Indemnified Party or Affected Person arising

					
	 	 	 	 	 
	 
	 	Exhibit B-1
	 	Purchase and Sale Agreement

 

 

in connection with the Receivables Purchase Agreement, in each case, howsoever
created, arising or evidenced, whether direct or indirect, absolute or contingent,
now or hereafter existing, or due or to become due, together with any and all
interest and Discount accruing on any such amount after the commencement of any
Bankruptcy Proceedings, notwithstanding any provision or rule of law that might
restrict the rights of any Senior Interest Holder, as against the Company or anyone
else, to collect such interest.

     “Senior Interest Holders” means, collectively, the Purchasers, the
Administrator and the Indemnified Parties and Affected Persons.

     “Subordination Provisions” means, collectively, clauses (a)
through (l) of paragraph 9 hereof.

     “Telerate Screen Rate” means, for any Interest Period, the rate for
thirty day commercial paper denominated in Dollars which appears on Page 1250 of the
Dow Jones Telerate Service (or such other page as may replace that page on that
service for the purpose of displaying Dollar commercial paper rates) at approximately
9:00 a.m., New York City time, on the first day of such Interest Period.

     3. Interest. Subject to the Subordination Provisions set forth below, the Company
promises to pay interest on this Company Note as follows:

     (a) Prior to the Final Maturity Date, the aggregate unpaid Purchase Price from time to
time outstanding during any Interest Period shall bear interest at a rate per
annum equal to the Telerate Screen Rate for such Interest Period, as determined by
the Servicer; and

     (b) From (and including) the Final Maturity Date to (but excluding) the date on which
the entire aggregate unpaid Purchase Price is fully paid, the aggregate unpaid Purchase
Price from time to time outstanding shall bear interest at a rate per annum
equal to the rate of interest publicly announced from time to time by PNC Bank, National
Association, as its “base rate”, “reference rate” or other comparable rate, as determined by
the Servicer.

     4. Interest Payment Dates. Subject to the Subordination Provisions set forth below,
the Company shall pay accrued interest on this Company Note on each Payment Date, and shall pay
accrued interest on the amount of each principal payment made in cash on a date other than a
Payment Date at the time of such principal payment.

     5. Basis of Computation. Interest accrued hereunder that is computed by reference to
the Telerate Screen Rate shall be computed for the actual number of days elapsed on the basis of a
360-day year, and interest accrued hereunder that is computed by reference to the rate described in
paragraph 3(b) of this Company Note shall be computed for the actual number of days elapsed
on the basis of a 365- or 366-day year.

     6. Principal Payment Dates. Subject to the Subordination Provisions set forth below,
payments of the principal amount of this Company Note shall be made as follows:

					
	 	 	 	 	 
	 
	 	Exhibit B-2
	 	Purchase and Sale Agreement

 

 

     (a) The principal amount of this Company Note shall be reduced by an amount equal to
each payment deemed made pursuant to Section 3.3 of the Purchase and Sale Agreement;
and

     (b) The entire remaining unpaid Purchase Price of all Receivables purchased by the
Company from Originator pursuant to the Purchase and Sale Agreement shall be paid on the
Final Maturity Date.

Subject to the Subordination Provisions set forth below, the principal amount of and accrued
interest on this Company Note may be prepaid by, and in the sole discretion of the Company, on any
Business Day without premium or penalty.

     7. Payment Mechanics. All payments of principal and interest hereunder are to be made
in lawful money of the United States of America in the manner specified in Article III of
the Purchase and Sale Agreement.

     8. Enforcement Expenses. In addition to and not in limitation of the foregoing, but
subject to the Subordination Provisions set forth below and to any limitation imposed by applicable
law, the Company agrees to pay all expenses, including reasonable attorneys’ fees and legal
expenses, incurred by Originator in seeking to collect any amounts payable hereunder which are not
paid when due.

     9. Subordination Provisions. The Company covenants and agrees, and Originator and any
other holder of this Company Note (collectively, Originator and any such other holder are called
the “Holder”), by its acceptance of this Company Note, likewise covenants and agrees on
behalf of itself and any holder of this Company Note, that the payment of the principal amount of
and interest on this Company Note is hereby expressly subordinated in right of payment to the
payment and performance of the Senior Interests to the extent and in the manner set forth in the
following clauses of this paragraph 9:

     (a) No payment or other distribution of the Company’s assets of any kind or character,
whether in cash, securities, or other rights or property, shall be made on account of this
Company Note except to the extent such payment or other distribution is (i) permitted under
Section 1(n) of Exhibit IV to the Receivables Purchase Agreement or (ii)
made pursuant to clause (a) or (b) of paragraph 6 of this Company
Note;

     (b) In the event of any dissolution, winding up, liquidation, readjustment,
reorganization or other similar event relating to the Company, whether voluntary or
involuntary, partial or complete, and whether in bankruptcy, insolvency or receivership
proceedings, or upon an assignment for the benefit of creditors, or any other marshalling of
the assets and liabilities of the Company or any sale of all or substantially all of the
assets of the Company other than as permitted by the Purchase and Sale Agreement (such
proceedings being herein collectively called “Bankruptcy Proceedings”), the Senior
Interests shall first be paid and performed in full and in cash before Originator shall be
entitled to receive and to retain any payment or distribution in respect of this Company
Note. In order to implement the foregoing: (i) all payments and distributions of any kind
or character in respect of this Company Note to which Holder would be entitled except

					
	 	 	 	 	 
	 
	 	Exhibit B-3
	 	Purchase and Sale Agreement

 

 

for this clause (b) shall be made directly to the Administrator (for the
benefit of the Senior Interest Holders); (ii) Holder shall promptly file a claim or claims,
in the form required in any Bankruptcy Proceedings, for the full outstanding amount of this
Company Note, and shall use commercially reasonable efforts to cause said claim or claims to
be approved and all payments and other distributions in respect thereof to be made directly
to the Administrator (for the benefit of the Senior Interest Holders) until the Senior
Interests shall have been paid and performed in full and in cash; and (iii) Holder hereby
irrevocably agrees that Administrator (acting on behalf of the Purchasers), in the name of
Holder or otherwise, demand, sue for, collect, receive and receipt for any and all such
payments or distributions, and file, prove and vote or consent in any such Bankruptcy
Proceedings with respect to any and all claims of Holder relating to this Company Note, in
each case until the Senior Interests shall have been paid and performed in full and in cash;

     (c) In the event that Holder receives any payment or other distribution of any kind or
character from the Company or from any other source whatsoever, in respect of this Company
Note, other than as expressly permitted by the terms of this Company Note, such payment or
other distribution shall be received in trust for the Senior Interest Holders and shall be
turned over by Holder to the Administrator (for the benefit of the Senior Interest Holders)
forthwith. Holder will mark its books and records so as clearly to indicate that this
Company Note is subordinated in accordance with the terms hereof. All payments and
distributions received by the Administrator in respect of this Company Note, to the extent
received in or converted into cash, may be applied by the Administrator (for the benefit of
the Senior Interest Holders) first to the payment of any and all expenses (including
reasonable attorneys’ fees and legal expenses) paid or incurred by the Senior Interest
Holders in enforcing these Subordination Provisions, or in endeavoring to collect or realize
upon this Company Note, and any balance thereof shall, solely as between Originator and the
Senior Interest Holders, be applied by the Administrator (in the order of application set
forth in Section 1.4(d) of the Receivables Purchase Agreement) toward the payment of
the Senior Interests; but as between the Company and its creditors, no such payments or
distributions of any kind or character shall be deemed to be payments or distributions in
respect of the Senior Interests;

     (d) Notwithstanding any payments or distributions received by the Senior Interest
Holders in respect of this Company Note, while any Bankruptcy Proceedings are pending Holder
shall not be subrogated to the then existing rights of the Senior Interest Holders in
respect of the Senior Interests until the Senior Interests have been paid and performed in
full and in cash. If no Bankruptcy Proceedings are pending, Holder shall only be entitled
to exercise any subrogation rights that it may acquire (by reason of a payment or
distribution to the Senior Interest Holders in respect of this Company Note) to the extent
that any payment arising out of the exercise of such rights would be permitted under
Section 1(n) of Exhibit IV to the Receivables Purchase Agreement;

     (e) These Subordination Provisions are intended solely for the purpose of defining the
relative rights of Holder, on the one hand, and the Senior Interest Holders on the other
hand. Nothing contained in these Subordination Provisions or elsewhere in this Company Note
is intended to or shall impair, as between the Company, its creditors

					
	 	 	 	 	 
	 
	 	Exhibit B-4
	 	Purchase and Sale Agreement

 

 

(other than the Senior Interest Holders) and Holder, the Company’s obligation, which is
unconditional and absolute, to pay Holder the principal of and interest on this Company Note
as and when the same shall become due and payable in accordance with the terms hereof or to
affect the relative rights of Holder and creditors of the Company (other than the Senior
Interest Holders);

     (f) Holder shall not, until the Senior Interests have been paid and performed in full
and in cash, (i) cancel, waive, forgive, or commence legal proceedings to enforce or
collect, or subordinate to any obligation of the Company, howsoever created, arising or
evidenced, whether direct or indirect, absolute or contingent, or now or hereafter existing,
or due or to become due, other than the Senior Interests, this Company Note or any rights in
respect hereof or (ii) convert this Company Note into an equity interest in the Company,
unless Holder shall, in either case, have received the prior written consent of the
Administrator;

     (g) Holder shall not, without the advance written consent of the Administrator and
Purchaser, commence, or join with any other Person in commencing, any Bankruptcy Proceedings
with respect to the Company until at least one year and one day shall have passed since the
Senior Interests shall have been paid and performed in full and in cash;

     (h) If, at any time, any payment (in whole or in part) of any Senior Interest is
rescinded or must be restored or returned by a Senior Interest Holder (whether in connection
with Bankruptcy Proceedings or otherwise), these Subordination Provisions shall continue to
be effective or shall be reinstated, as the case may be, as though such payment had not been
made;

     (i) Each of the Senior Interest Holders may, from time to time, at its sole discretion,
without notice to Holder, and without waiving any of its rights under these Subordination
Provisions, take any or all of the following actions: (i) retain or obtain an interest in
any property to secure any of the Senior Interests; (ii) retain or obtain the primary or
secondary obligations of any other obligor or obligors with respect to any of the Senior
Interests; (iii) extend or renew for one or more periods (whether or not longer than the
original period), alter or exchange any of the Senior Interests, or release or compromise
any obligation of any nature with respect to any of the Senior Interests; (iv) amend,
supplement, amend and restate, or otherwise modify any Transaction Document; and (v) release
its security interest in, or surrender, release or permit any substitution or exchange for
all or any part of any rights or property securing any of the Senior Interests, or extend or
renew for one or more periods (whether or not longer than the original period), or release,
compromise, alter or exchange any obligations of any nature of any obligor with respect to
any such rights or property;

     (j) Holder hereby waives: (i) notice of acceptance of these Subordination Provisions
by any of the Senior Interest Holders; (ii) notice of the existence, creation, non-payment
or non-performance of all or any of the Senior Interests; and (iii) all diligence in
enforcement, collection or protection of, or realization upon, the Senior Interests, or any
thereof, or any security therefor;

					
	 	 	 	 	 
	 
	 	Exhibit B-5
	 	Purchase and Sale Agreement

 

 

     (k) Each of the Senior Interest Holders may, from time to time, on the terms and
subject to the conditions set forth in the Transaction Documents to which such Persons are
party, but without notice to Holder, assign or transfer any or all of the Senior Interests,
or any interest therein; and, notwithstanding any such assignment or transfer or any
subsequent assignment or transfer thereof, such Senior Interests shall be and remain Senior
Interests for the purposes of these Subordination Provisions, and every immediate and
successive assignee or transferee of any of the Senior Interests or of any interest of such
assignee or transferee in the Senior Interests shall be entitled to the benefits of these
Subordination Provisions to the same extent as if such assignee or transferee were the
assignor or transferor; and

     (l) These Subordination Provisions constitute a continuing offer from the holder of
this Company Note to all Persons who become the holders of, or who continue to hold, Senior
Interests; and these Subordination Provisions are made for the benefit of the Senior
Interest Holders, and the Administrator may proceed to enforce such provisions on behalf of
each of such Persons.

     10. General. No failure or delay on the part of Originator in exercising any power or
right hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any
such power or right preclude any other or further exercise thereof or the exercise of any other
power or right. No amendment, modification or waiver of, or consent with respect to, any provision
of this Company Note shall in any event be effective unless (i) the same shall be in writing and
signed and delivered by the Company and Holder and (ii) all consents required for such actions
under the Transaction Documents shall have been received by the appropriate Persons.

     11. Maximum Interest. Notwithstanding anything in this Company Note to the contrary,
the Company shall never be required to pay unearned interest on any amount outstanding hereunder
and shall never be required to pay interest on the principal amount outstanding hereunder at a rate
in excess of the maximum nonusurious interest rate that may be contracted for, charged or received
under applicable federal or state law (such maximum rate being herein called the “Highest
Lawful Rate”). If the effective rate of interest which would otherwise by payable under this
Company Note would exceed the Highest Lawful Rate, or if the holder of this Company Note shall
receive any unearned interest or shall receive monies that are deemed to constitute interest which
would increase the effective rate of interest payable by the Company under this Company Note to a
rate in excess of the Highest Lawful Rate, then (i) the amount of interest which would otherwise be
payable by the Company under this Company Note shall be reduced to the amount allowed by applicable
law, and (ii) any unearned interest paid by the Company or any interest paid by the Company in
excess of the Highest Lawful Rate shall be refunded to the Company. Without limitation of the
foregoing, all calculations of the rate of interest contracted for, charged or received by
Originator under this Company Note that are made for the purpose of determining whether such rate
exceeds the Highest Lawful Rate applicable to Originator (such Highest Lawful Rate being herein
called the “Originator’s Maximum Permissible Rate”) shall be made, to the extent permitted
by usury laws applicable to Originator (now or hereafter enacted), by amortizing, prorating and
spreading in equal parts during the actual period during which any amount has been outstanding
hereunder all interest at any time contracted for, charged or received by Originator in connection
herewith. If at any time

					
	 	 	 	 	 
	 
	 	Exhibit B-6
	 	Purchase and Sale Agreement

 

 

and from time to time (i) the amount of interest payable to Originator on any date shall be
computed at Originator’s Maximum Permissible Rate pursuant to the provisions of the foregoing
sentence and (ii) in respect of any subsequent interest computation period the amount of interest
otherwise payable to Originator would be less than the amount of interest payable to Originator
computed at Originator’s Maximum Permissible Rate, then the amount of interest payable to
Originator in respect of such subsequent interest computation period shall continue to be computed
at Originator’s Maximum Permissible Rate until the total amount of interest payable to Originator
shall equal the total amount of interest which would have been payable to Originator if the total
amount of interest had been computed without giving effect to the provisions of the foregoing
sentence.

     12. Governing Law. THIS COMPANY NOTE SHALL BE GOVERNED BY, AND CONSTRUED IN
ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS
PRINCIPLES THEREOF).

     13. Captions. Paragraph captions used in this Company Note are for convenience only
and shall not affect the meaning or interpretation of any provision of this Company Note.

					
	 	 	 	 	 
	 
	 	Exhibit B-7
	 	Purchase and Sale Agreement

 

 

     IN WITNESS WHEREOF, the Company has caused this Company Note to be executed as of the date
first written above.

	 	 	 	 	 	 	 
	 	 	COOPER RECEIVABLES LLC	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:	 	 	 	 

					
	 	 	 	 	 
	 
	 	Exhibit B-8
	 	Purchase and Sale Agreement

 

 

Exhibit C

FORM OF JOINDER AGREEMENT

     THIS JOINDER AGREEMENT, dated as of                     , 20___(this “Agreement”) is executed
by                    , a [corporation][limited liability company] organized under the laws of                     
(the “Additional Originator”), with its principal place of business located at                     .

BACKGROUND:

     A. COOPER RECEIVABLES LLC, a Delaware limited liability company (the “Company”) and
the various entities from time to time party thereto, as Originators (collectively, the
“Originators”), have entered into that certain Purchase and Sale Agreement, dated as of
August 30, 2006 (as amended, restated, supplemented or otherwise modified through the date hereof,
and as it may be further amended, restated, supplemented or otherwise modified from time to time,
the “Purchase and Sale Agreement”).

     B. The Additional Originator desires to become a Originator pursuant to Section 4.3 of
the Purchase and Sale Agreement.

     NOW, THEREFORE, in consideration of the foregoing and other good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, the Additional Originator hereby
agrees as follows:

     SECTION 1. Definitions. Capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings assigned thereto in the Purchase and Sale Agreement or in
the Receivables Purchase Agreement (as defined in the Purchase and Sale Agreement).

     SECTION 2. Transaction Documents. The Additional Originator hereby agrees that it
shall be bound by all of the terms, conditions and provisions of, and shall be deemed to be a party
to (as if it were an original signatory to), the Purchase and Sale Agreement and each of the other
relevant Transaction Documents. From and after the later of the date hereof and the date that the
Additional Originator has complied with all of the requirements of Section 4.3 of the
Purchase and Sale Agreement, the Additional Originator shall be an Originator for all purposes of
the Purchase and Sale Agreement and all other Transaction Documents. The Additional Originator
hereby acknowledges that it has received copies of the Purchase and Sale Agreement and the other
Transaction Documents.

     SECTION 3. Representations and Warranties. The Additional Originator hereby makes all
of the representations and warranties set forth in Article V (to the extent applicable) of
the Purchase and Sale Agreement as of the date hereof (unless such representations or warranties
relate to an earlier date, in which case as of such earlier date), as if such representations and
warranties were fully set forth herein. The Additional Originator hereby represents and warrants
that its location (as defined in the applicable UCC) is [                                        ], and the offices
where the Additional Originator keeps all of its Records and Related Security is as follows:

					
	 	 	 	 	 
	 
	 	Exhibit C-1
	 	Purchase and Sale Agreement

 

 

                                                                           

                                                                           

                                                                           

     SECTION 4. Miscellaneous. This Agreement shall be governed by, and construed in
accordance with, the internal laws of the State of New York. This Agreement is executed by the
Additional Originator for the benefit of the Company, and its assigns, and each of the foregoing
parties may rely hereon. This Agreement shall be binding upon, and shall inure to the benefit of,
the Additional Originator and its successors and permitted assigns.

[Signature Pages Follow]

					
	 	 	 	 	 
	 
	 	Exhibit C-2
	 	Purchase and Sale Agreement

 

 

     IN WITNESS WHEREOF, the undersigned has caused this Agreement to be executed by its duly
authorized officer as of the date and year first above written.

	 	 	 	 	 	 	 
	 	 	[NAME OF ADDITIONAL ORIGINATOR]
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 
	 

	 	 	 	 	 	 

Consented to:

COOPER RECEIVABLES LLC

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

Acknowledged by:

PNC BANK, NATIONAL ASSOCIATION,

as Administrator

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

[PURCHASER AGENTS]

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 

	 	 

					
	 	 	 	 	 
	 
	 	Exhibit C-3
	 	Purchase and Sale AgreementEX-10.2

 

EXHIBIT 10.2

EXECUTION COPY

 

RECEIVABLES PURCHASE AGREEMENT

dated as of August 30, 2006

among

COOPER RECEIVABLES LLC,

as Seller

COOPER TIRE & RUBBER COMPANY,

as Servicer

THE VARIOUS PURCHASER GROUPS FROM TIME TO TIME PARTY HERETO,

and

PNC BANK, NATIONAL ASSOCIATION,

as Administrator

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE I

	AMOUNTS AND TERMS OF THE PURCHASES

	Section 1.1
	 	Purchase Facility	 	 	1	 
	Section 1.2
	 	Making Purchases	 	 	2	 
	Section 1.3
	 	Purchased Interest Computation	 	 	3	 
	Section 1.4
	 	Settlement Procedures	 	 	4	 
	Section 1.5
	 	Fees	 	 	8	 
	Section 1.6
	 	Payments and Computations, Etc.	 	 	8	 
	Section 1.7
	 	Increased Costs	 	 	9	 
	Section 1.8
	 	Requirements of Law	 	 	10	 
	Section 1.9
	 	Funding Losses	 	 	10	 
	Section 1.10
	 	Taxes	 	 	10	 
	Section 1.11
	 	Inability to Determine Euro-Rate	 	 	11	 
	Section 1.12
	 	Extension of Termination Date	 	 	12	 
	ARTICLE II

	REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS

	Section 2.1
	 	Representations and Warranties; Covenants	 	 	12	 
	Section 2.2
	 	Termination Events	 	 	12	 
	ARTICLE III

	INDEMNIFICATION

	Section 3.1
	 	Indemnities by the Seller	 	 	12	 
	Section 3.2
	 	Indemnities by the Servicer	 	 	14	 
	ARTICLE IV

	ADMINISTRATION AND COLLECTIONS

	Section 4.1
	 	Appointment of the Servicer	 	 	14	 
	Section 4.2
	 	Duties of the Servicer	 	 	15	 
	Section 4.3
	 	Lock-Box Account Arrangements	 	 	16	 
	Section 4.4
	 	Enforcement Rights	 	 	17	 
	Section 4.5
	 	Responsibilities of the Seller	 	 	18	 
	Section 4.6
	 	Servicing Fee	 	 	18	 
	ARTICLE V

	THE AGENTS

	Section 5.1
	 	Appointment and Authorization	 	 	18	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 5.2
	 	Delegation of Duties	 	 	19	 
	Section 5.3
	 	Exculpatory Provisions	 	 	20	 
	Section 5.4
	 	Reliance by Agents	 	 	20	 
	Section 5.5
	 	Notice of Termination Events	 	 	21	 
	Section 5.6
	 	Non-Reliance on Administrator, Purchaser Agents and Other Purchasers	 	 	21	 
	Section 5.7
	 	Administrators and Affiliates	 	 	21	 
	Section 5.8
	 	Indemnification	 	 	22	 
	Section 5.9
	 	Successor Administrator	 	 	22	 
	ARTICLE VI

	MISCELLANEOUS

	Section 6.1
	 	Amendments, Etc.	 	 	22	 
	Section 6.2
	 	Notices, Etc.	 	 	23	 
	Section 6.3
	 	Successors and Assigns; Participations; Assignments	 	 	23	 
	Section 6.4
	 	Costs, Expenses and Taxes	 	 	25	 
	Section 6.5
	 	No Proceedings; Limitation on Payments	 	 	25	 
	Section 6.6
	 	GOVERNING LAW AND JURISDICTION	 	 	26	 
	Section 6.7
	 	Confidentiality	 	 	27	 
	Section 6.8
	 	Execution in Counterparts	 	 	27	 
	Section 6.9
	 	Survival of Termination	 	 	27	 
	Section 6.10
	 	WAIVER OF JURY TRIAL	 	 	27	 
	Section 6.11
	 	Sharing of Recoveries	 	 	27	 
	Section 6.12
	 	Right of Setoff	 	 	28	 
	Section 6.13
	 	Entire Agreement	 	 	28	 
	Section 6.14
	 	Headings	 	 	28	 
	Section 6.15
	 	Purchaser Groups’ Liabilities	 	 	28	 

-ii-

 

	 	 	 	 	 
	EXHIBIT I

	 	Definitions
	 	 
	EXHIBIT II

	 	Conditions of Purchases	 	 
	EXHIBIT III

	 	Representations and Warranties	 	 
	EXHIBIT IV

	 	Covenants	 	 
	EXHIBIT V

	 	Termination Events	 	 
	SCHEDULE I

	 	Credit and Collection Policy	 	 
	SCHEDULE II

	 	Lock-Box Banks and Lock-Box Accounts	 	 
	SCHEDULE III

	 	Trade Names	 	 
	SCHEDULE IV

	 	Actions and Proceedings	 	 
	ANNEX A

	 	Form of Information Package	 	 
	ANNEX B

	 	Form of Purchase Notice	 	 
	ANNEX C

	 	Form of Assumption Agreement	 	 
	ANNEX D

	 	Form of Transfer Supplement	 	 
	ANNEX E

	 	Form of Paydown Notice	 	 

-i-

 

     This RECEIVABLES PURCHASE AGREEMENT (as amended, restated, supplemented or otherwise modified
from time to time, this “Agreement”) is entered into as of August 30, 2006, among COOPER
RECEIVABLES LLC, a Delaware limited liability company, as seller (the “Seller”), COOPER
TIRE & RUBBER COMPANY, a Delaware corporation (together with its successors and permitted assigns,
“Cooper Tire”), as initial servicer (in such capacity, together with its successors and
permitted assigns in such capacity, the “Servicer”), THE VARIOUS PURCHASERS AND PURCHASER
AGENTS FROM TIME TO TIME PARTY HERETO, and PNC BANK, NATIONAL ASSOCIATION, as Administrator for
each Purchaser Group (in such capacity, the “Administrator”).

     PRELIMINARY STATEMENTS. Certain terms that are capitalized and used throughout this Agreement
are defined in Exhibit I. References in the Exhibits hereto to the “Agreement” refer to
this Agreement, as amended, supplemented or otherwise modified from time to time.

     The Seller desires to sell, transfer and assign an undivided variable percentage interest in a
pool of receivables, and the Purchasers desire to acquire such undivided variable percentage
interest, as such percentage interest shall be adjusted from time to time based upon, in part,
reinvestment payments that are made by such Purchasers.

     In consideration of the mutual agreements, provisions and covenants contained herein, the
parties hereto agree as follows:

ARTICLE I

AMOUNTS AND TERMS OF THE PURCHASES

     Section 1.1 Purchase Facility.

     (a) On the terms and subject to the conditions hereof, the Seller may, from time to time
before the Facility Termination Date, ratably (based on the aggregate Commitments of the Related
Committed Purchasers in their respective Purchaser Groups) request that the Conduit Purchasers, or,
only if a Conduit Purchaser denies such request or is unable to fund (and provides notice of such
denial or inability to the Seller, the Administrator and its Purchaser Agent), ratably request that
the Related Committed Purchasers, make purchases of and reinvestments in undivided percentage
ownership interests with regard to the Purchased Interest from the Seller from time to time from
the date hereof to the Facility Termination Date. Subject to Section 1.4(b), concerning
reinvestments, at no time will a Conduit Purchaser have any obligation to make a purchase. Each
Related Committed Purchaser severally hereby agrees, on the terms and subject to the conditions
hereof, to make Purchases before the Facility Termination Date, based on the applicable Purchaser
Group’s Ratable Share of each purchase requested pursuant to Section 1.2(a) (each a
“Purchase”) (and, in the case of each Related Committed Purchaser, its Commitment
Percentage of its Purchaser Group’s Ratable Share of such Purchase); provided,
however, that under no circumstances shall any Purchaser make any Purchase or reinvestment
hereunder if, after giving effect to such Purchase or reinvestment (i) such Purchaser’s Aggregate
Capital would exceed its Commitment, (ii) the Aggregate Capital would (after giving effect to all
Purchases and reinvestments on such date) exceed the Purchase Limit or (iii) the Purchased Interest
would exceed 100%.

 

 

     (b) The Seller may, upon 60 days’ written notice to the Administrator and each Purchaser
Agent, reduce the unfunded portion of the Purchase Limit in whole or in part (but not below the
amount which would cause the Group Capital of any Purchaser Group to exceed its Group Commitment
(after giving effect to such reduction)); provided that each partial reduction shall be in
the amount of at least $5,000,000, or an integral multiple of $1,000,000 in excess thereof and the
Purchase Limit shall in no event be reduced below $20,000,000. Such reduction shall, unless
otherwise agreed to in writing by the Seller, the Administrator and each Purchaser Agent be applied
ratably to reduce the Group Commitment of each Purchaser Group.

     Section 1.2 Making Purchases. (a) Each purchase (but not reinvestment) of undivided
percentage ownership interests with regard to the Purchased Interest hereunder may be made on any
day upon the Seller’s irrevocable written notice in the form of Annex B (each, a
“Purchase Notice”) delivered to the Administrator and each Purchaser Agent in accordance
with Section 6.2 (which notice must be received by the Administrator and each Purchaser
Agent before 2:00 p.m., New York City Time) at least two Business Days before the requested
Purchase Date, which notice shall specify: (A) the amount requested to be paid to the Seller (such
amount, which shall not be less than $300,000 (or such lesser amount as agreed to by the
Administrator and the Majority Purchaser Agents) and shall be in integral multiples of $100,000,
with respect to each Purchaser Group, (B) the date of such purchase (which shall be a Business Day)
and (C) the pro forma calculation of the Purchased Interest after giving effect to the increase in
the Aggregate Capital.

     (b) On the date of each Purchase (but not reinvestment) of undivided percentage ownership
interests with regard to the Purchased Interest hereunder, each applicable Purchaser shall, upon
satisfaction of the applicable conditions set forth in Exhibit II, make available to the
Seller in same day funds, at PNC Bank, National Association, account number 1014303015 (or such
other account as may be so designated in writing by the Seller to the Administrator and each
Purchaser Agent) an amount equal to the portion of Capital relating to the undivided percentage
ownership interest then being funded by such Purchaser.

     (c) Effective on the date of each Purchase pursuant to this Section 1.2 and each
reinvestment pursuant to Section 1.4, the Seller hereby sells and assigns to the
Administrator for the benefit of the Purchasers (ratably, according to each such Purchaser’s
Capital) an undivided percentage ownership interest in: (i) each Pool Receivable then existing,
(ii) all Related Security with respect to such Pool Receivables, and (iii) all Collections with
respect to, and other proceeds of, such Pool Receivables and Related Security.

     (d) To secure all of the Seller’s obligations (monetary or otherwise) under this Agreement and
the other Transaction Documents to which it is a party, whether now or hereafter existing or
arising, due or to become due, direct or indirect, absolute or contingent, the Seller hereby grants
to the Administrator, for the benefit of the Purchasers, a security interest in all of the Seller’s
right, title and interest (including any undivided interest of the Seller) in, to and under all of
the following, whether now or hereafter owned, existing or arising: (i) all Pool Receivables, (ii)
all Related Security with respect to such Pool Receivables, (iii) all Collections with respect to
such Pool Receivables, (iv) the Lock-Box Accounts and all amounts on deposit therein, and all
certificates and instruments, if any, from time to time evidencing such Lock-Box Accounts and
amounts on deposit therein, (v) all rights (but none of the obligations) of the Seller

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under the Sale Agreement and (vi) all proceeds of, and all amounts received or receivable
under any or all of, the foregoing (collectively, the “Pool Assets”). The Seller hereby
authorizes the Administrator to file financing statements describing as the collateral covered
thereby as “all of the debtor’s personal property or assets” or words to that effect,
notwithstanding that such wording may be broader in scope than the collateral described in this
Agreement. The Administrator, for the benefit of the Purchasers, shall have, with respect to the
Pool Assets, and in addition to all the other rights and remedies available to the Administrator
and the Purchasers, all the rights and remedies of a secured party under any applicable UCC.

     (e) The Seller may, with the written consent of the Administrator and each Purchaser Agent,
add additional Persons as Purchasers (either to an existing Purchaser Group or by creating new
Purchaser Groups) or cause an existing Purchaser to increase its Commitment in connection with a
corresponding increase in the Purchase Limit; provided, however, that the
Commitment of any Purchaser may only be increased with the prior written consent of such Purchaser.
Each new Purchaser (or Purchaser Group) shall become a party hereto, by executing and delivering
to the Administrator and the Seller, an Assumption Agreement in the form of Annex C hereto
(which Assumption Agreement shall, in the case of any new Purchaser or Purchasers, be executed by
each Person in such new Purchaser’s Purchaser Group).

     (f) Each Related Committed Purchaser’s obligation hereunder shall be several, such that the
failure of any Related Committed Purchaser to make a payment in connection with any purchase
hereunder shall not relieve any other Related Committed Purchaser of its obligation hereunder to
make payment for any Purchase. Further, in the event any Related Committed Purchaser fails to
satisfy its obligation to make a purchase as required hereunder, upon receipt of notice of such
failure from the Administrator (or any relevant Purchaser Agent), subject to the limitations set
forth herein, the non-defaulting Related Committed Purchasers in such defaulting Related Committed
Purchaser’s Purchaser Group shall purchase the defaulting Related Committed Purchaser’s Commitment
Percentage of the related Purchase pro rata in proportion to their relative
Commitment Percentages (determined without regard to the Commitment Percentage of the defaulting
Related Committed Purchaser; it being understood that a defaulting Related Committed Purchaser’s
Commitment Percentage of any Purchase shall be first put to the Related Committed Purchasers in
such defaulting Related Committed Purchaser’s Purchaser Group and thereafter if there are no other
Related Committed Purchasers in such Purchaser Group or if such other Related Committed Purchasers
are also defaulting Related Committed Purchasers, then such defaulting Related Committed
Purchaser’s Commitment Percentage of such Purchase shall be put to each other Purchaser Group
ratably and applied in accordance with this paragraph (f)). Notwithstanding anything in
this paragraph (f) to the contrary, no Related Committed Purchaser shall be required to
make a Purchase pursuant to this paragraph for an amount which would cause the aggregate Capital of
such Related Committed Purchaser (after giving effect to such Purchase) to exceed its Commitment.

     Section 1.3 Purchased Interest Computation. The Purchased Interest shall be initially
computed on the Closing Date. Thereafter, until the Facility Termination Date, such Purchased
Interest shall be automatically recomputed (or deemed to be recomputed) on each Business Day other
than a Termination Day. From and after the occurrence of any Termination Day, the Purchased
Interest shall (until the event(s) giving rise to such Termination Day are satisfied or are waived
by the Administrator in accordance with Section 2.2) be deemed to be 100%. The

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Purchased Interest shall become zero when the Aggregate Capital thereof and
Aggregate Discount thereon shall have been paid in full, all the amounts owed by the Seller and the
Servicer hereunder to each Purchaser, the Administrator and any other Indemnified Party or Affected
Person are paid in full, and the Servicer shall have received the accrued Servicing Fee thereon.

     Section 1.4 Settlement Procedures.

     (a) The collection of the Pool Receivables shall be administered by the Servicer in accordance
with this Agreement. The Seller shall provide to the Servicer on a timely basis all information
needed for such administration, including notice of the occurrence of any Termination Day and
current computations of the Purchased Interest.

     (b) The Servicer shall, on each day on which Collections of Pool Receivables are received (or
deemed received) by the Seller or the Servicer:

     (i) set aside and hold in trust (and shall, at the request of the Administrator,
segregate in a separate account approved by the Administrator) for the benefit of each
Purchaser Group, out of such Collections, first, an amount equal to the Aggregate Discount
accrued through such day for each Portion of Capital and not previously set aside, second,
an amount equal to the fees set forth in each Purchaser Group Fee Letter accrued and unpaid
through such day, and third, to the extent funds are available therefor, an amount equal to
the aggregate of each Purchasers’ Share of the Servicing Fee accrued through such day and
not previously set aside,

     (ii) subject to Section 1.4(f), if such day is not a Termination Day, remit to
the Seller, ratably, on behalf of each Purchaser Group, the remainder of such Collections.
Such remainder shall, to the extent representing a return on the Aggregate Capital, ratably,
according to each Purchaser’s Capital, be automatically reinvested in Pool Receivables, and
in the Related Security, Collections and other proceeds with respect thereto;
provided, however, that if the Purchased Interest would exceed 100%, then
the Servicer shall not reinvest, but shall set aside and hold in trust for the benefit of
the Purchasers (and shall, at the request of the Administrator, segregate in a separate
account approved by the Administrator) a portion of such Collections that, together with the
other Collections set aside pursuant to this paragraph, shall equal the amount necessary to
reduce the Purchased Interest to 100%, which amount shall be deposited ratably to each
Purchaser Agent’s account (for the benefit of its related Purchasers) on the next Settlement
Date in accordance with Section 1.4(c); provided, further, that (x)
in the case of any Purchaser that is a Conduit Purchaser, if such Purchaser has provided
notice (a “Declining Notice”) to its Purchaser Agent, the Administrator, and the
Servicer that such Purchaser (a “Declining Conduit Purchaser”) no longer wishes
Collections with respect to any Portion of Capital funded or maintained by such Purchaser to
be reinvested pursuant to this clause (ii), and (y) in the case of any Purchaser
that has provided notice (an “Exiting Notice”) to its Purchaser Agent of either its
refusal, pursuant to Section 1.12, to extend its Commitment hereunder (an
“Exiting Purchaser”) then in either case (x) or (y), above, such Collections shall
not be reinvested and shall instead be held in trust for the benefit of such Purchaser and
applied in accordance with clause (iii), below.

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     (iii) if such day is a Termination Day (or any day following the provision of a
Declining Notice or an Exiting Notice), set aside, segregate and hold in trust (and shall,
at the request of the Administrator, segregate in a separate account approved by the
Administrator) for the benefit of each Purchaser Group the entire remainder of the
Collections (or in the case of a Declining Conduit Purchaser or an Exiting Purchaser an
amount equal to such Purchaser’s ratable share of such Collections based on its Capital;
provided, that solely for the purpose of determining such Purchaser’s ratable share
of such Collections, such Purchaser’s Capital shall be deemed to remain constant from the
date of the provision of a Declining Notice or an Exiting Notice, as the case may be, until
the date such Purchaser’s Capital has been paid in full; it being understood that if such
day is also a Termination Day, such Declining Conduit Purchaser’s or Exiting Purchaser’s
Capital shall be recalculated taking into account amounts received by such Purchaser in
respect of this parenthetical and thereafter Collections shall be set aside for such
Purchaser ratably in respect of its Capital (as recalculated)); provided, that if
amounts are set aside and held in trust on any Termination Day of the type described in
clause (a) of the definition of “Termination Day” (or any day following the provision of a
Declining Notice or an Exiting Notice) and, thereafter, the conditions set forth in
Section 2 of Exhibit II are satisfied or waived by the Administrator and the
Majority Purchaser Agents (or in the case of a Declining Notice or an Exiting Notice, such
Declining Notice or Exiting Notice, as the case may be, has been revoked by the related
Declining Conduit Purchaser or Exiting Purchaser, respectively and written notice thereof
has been provided to the Administrator, the related Purchaser Agent and the Servicer), such
previously set-aside amounts shall, to the extent representing a return on Aggregate Capital
(or the Capital of the Declining Conduit Purchaser or Exiting Purchaser, as the case may be)
and ratably in accordance with each Purchaser’s Capital, be reinvested in accordance with
clause (ii) on the day of such subsequent satisfaction or waiver of conditions or
revocation of Declining Notice or Exiting Notice, as the case may be, and

     (iv) release to the Seller (subject to Section 1.4(f)) for its own account any
Collections in excess of: (x) amounts required to be reinvested in accordance with
clause (ii) or the proviso to clause (iii) plus (y) the amounts that are
required to be set aside pursuant to clause (i), the proviso to clause (ii)
and clause (iii) plus (z) the Seller’s Share of the Servicing Fee accrued and unpaid
through such day and all reasonable and appropriate out-of-pocket costs and expenses of the
Servicer for servicing, collecting and administering the Pool Receivables.

     (c) The Servicer shall, in accordance with the priorities set forth in Section 1.4(d),
below, deposit into each applicable Purchaser Agent’s account (or such other account designated by
such applicable Purchaser or its Purchaser Agent), on each Settlement Date (for any Portion of
Investment), Collections held for each Purchaser with respect to such Purchaser’s Portion(s) of
Capital pursuant to clause (b)(i) or (f), plus the amount of Collections then held
for the related Purchasers pursuant to clauses (b)(ii) and (iii) of Section
1.4; provided, that if Cooper Tire or an Affiliate thereof is the Servicer, such day is
not a Termination Day and the Administrator has not notified Cooper Tire (or such Affiliate) that
such right is revoked, Cooper Tire (or such Affiliate) may retain the portion of the Collections
set aside pursuant to clause (b)(i) that represents the aggregate of each Purchasers’ Share
of the Servicing Fee.

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     (d) The Servicer shall distribute the amounts described (and at the times set forth) in
Section 1.4(c), as follows:

     (i) if such distribution occurs on a day that is not a Termination Day and the
Purchased Interest does not exceed 100%, first to each Purchaser Agent ratably according to
the Discount accrued during such Yield Period (for the benefit of the relevant Purchasers
within such Purchaser Agent’s Purchaser Group) in payment in full of all accrued Discount
and Fees (other than Servicing Fees) with respect to each Portion of Capital maintained by
such Purchasers; it being understood that each Purchaser Agent shall distribute such amounts
to the Purchasers within its Purchaser Group ratably according to Discount, and second, if
the Servicer has set aside amounts in respect of the Servicing Fee pursuant to clause
(b)(i) and has not retained such amounts pursuant to clause (c), to the
Servicer’s own account (payable in arrears on each Settlement Date) in payment in full of
the aggregate of the Purchasers’ Share of accrued Servicing Fees so set aside, and

     (ii) if such distribution occurs on a Termination Day or on a day when the Purchased
Interest exceeds 100%, first if Cooper Tire or an Affiliate thereof is not the
Servicer, to the Servicer’s own account in payment in full of the Purchasers’ Share of all
accrued Servicing Fees, second to each Purchaser Agent ratably (based on the
aggregate accrued and unpaid Discount payable to all Purchasers at such time) (for the
benefit of the relevant Purchasers within such Purchaser Agent’s Purchaser Group) in payment
in full of all accrued Discount with respect to each Portion of Capital funded or maintained
by the Purchasers within such Purchaser Agent’s Purchaser Group, third to each
Purchaser Agent ratably according to the aggregate of the Capital of each Purchaser in each
such Purchaser Agent’s Purchaser Group (for the benefit of the relevant Purchasers within
such Purchaser Agent’s Purchaser Group) in payment in full of each Purchaser’s Capital (or,
if such day is not a Termination Day, the amount necessary to reduce the Purchased Interest
to 100%); it being understood that each Purchaser Agent shall distribute the amounts
described in the first and second clauses of this Section 1.4(d)(ii) to the
Purchasers within its Purchaser Group ratably according to Discount and Capital,
respectively, fourth, if the Aggregate Capital and accrued Aggregate Discount with
respect to each Portion of Capital for all Purchaser Groups have been reduced to zero, and
the Purchasers’ Share of all accrued Servicing Fees payable to the Servicer (if other than
Cooper Tire or an Affiliate thereof) have been paid in full, to each Purchaser Group
ratably, based on the amounts payable to each (for the benefit of the Purchasers within such
Purchaser Group), the Administrator and any other Indemnified Party or Affected Person in
payment in full of any other amounts owed thereto by the Seller or Servicer hereunder and,
fifth, to the Servicer’s own account (if the Servicer is Cooper Tire or an Affiliate
thereof) in payment in full of the aggregate of the Purchasers’ Share of all accrued
Servicing Fees.

After the Aggregate Capital, Aggregate Discount, fees payable pursuant to each Purchaser Group Fee
Letter and Servicing Fees with respect to the Purchased Interest, and any other amounts payable by
the Seller and the Servicer to each Purchaser Group, the Administrator or any other Indemnified
Party or Affected Person hereunder, have been paid in full, all additional Collections with respect
to the Purchased Interest shall be paid to the Seller for its own account.

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     (e) For the purposes of this Section 1.4:

     (i) if on any day the Outstanding Balance of any Pool Receivable is reduced or adjusted
as a result of any defective, rejected, returned, repossessed or foreclosed goods or
services, or any revision, cancellation, allowance, discount or other adjustment made by the
Seller or any Affiliate of the Seller, or the Servicer or any Affiliate of the Servicer, or
any setoff or dispute between the Seller or any Affiliate of the Seller, or the Servicer or
any Affiliate of the Servicer and an Obligor, the Seller shall be deemed to have received on
such day a Collection of such Pool Receivable in the amount of such reduction or adjustment
and shall immediately pay any and all such amounts in respect thereof to a Lock-Box Account
for the benefit of the Purchasers and their assigns and for application pursuant to
Section 1.4;

     (ii) if on any day any of the representations or warranties in Sections 1(j) or
3(a) of Exhibit III is not true with respect to any Pool Receivable, the
Seller shall be deemed to have received on such day a Collection of such Pool Receivable in
full and shall immediately pay any and all such amounts to a Lock-Box Account (or as
otherwise directed by the Administrator at such time) for the benefit of the Purchasers and
their assigns and for application pursuant to this Section 1.4 (Collections deemed
to have been received pursuant to clause (i) or (ii) of this paragraph
(e) are hereinafter sometimes referred to as “Deemed Collections”);

     (iii) except as otherwise required by applicable law or the relevant Contract, all
Collections received from an Obligor of any Receivable shall be applied to the Receivables
of such Obligor in the order of the age of such Receivables, starting with the oldest such
Receivable, unless such Obligor designates in writing its payment for application to
specific Receivables; and

     (iv) if and to the extent the Administrator, any Purchaser Agent or any Purchaser shall
be required for any reason to pay over to an Obligor (or any trustee, receiver, custodian or
similar official in any Insolvency Proceeding) any amount received by it hereunder, such
amount shall be deemed not to have been so received by such Person but rather to have been
retained by the Seller and, accordingly, such Person shall have a claim against the Seller
for such amount, payable when and to the extent that any distribution from or on behalf of
such Obligor is made in respect thereof.

     (f) If at any time the Seller shall wish to cause the reduction of Aggregate Capital (but not
to commence the liquidation, or reduction to zero, of the entire Aggregate Capital) the Seller may
do so as follows:

     (i) the Seller shall give the Administrator, each Purchaser Agent and the Servicer
written notice in the form of Annex E (each, a “Paydown Notice”) (A) at
least two Business Days prior to the date of such reduction for any reduction of the
Aggregate Capital less than or equal to $25,000,000 (or such greater amount as agreed to by
the Administrator and the Majority Purchaser Agents) and (B) at least five Business Days
prior to the date of such reduction for any reduction of the Aggregate Capital greater than
$25,000,000, and each such Paydown Notice shall include, among other things, the

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amount of such proposed reduction and the proposed date on which such reduction will
commence;

     (ii) on the proposed date of commencement of such reduction and on each day thereafter,
the Servicer shall cause Collections not to be reinvested until the amount thereof not so
reinvested shall equal the desired amount of reduction; and

     (iii) the Servicer shall hold such Collections in trust for the benefit of each
Purchaser ratably according to its Capital, for payment to each such Purchaser (or its
related Purchaser Agent for the benefit of such Purchaser) on the next Settlement Date (or
such other date as agreed to by the Administrator) with respect to any Portions of Capital
maintained by such Purchaser immediately following the related current Yield Period, and the
Aggregate Capital (together with the Capital of any related Purchaser) shall be deemed
reduced in the amount to be paid to such Purchaser (or its related Purchaser Agent for the
benefit of such Purchaser) only when in fact finally so paid;

provided, that:

     (A) the amount of any such reduction shall be not less than $100,000 for each Purchaser
Group and shall be an integral multiple of $100,000, and the entire Aggregate Capital after
giving effect to such reduction shall be not less than $20,000,000; and

     (B) with respect to any Portion of Capital, the Seller shall choose a reduction amount,
and the date of commencement thereof, so that to the extent practicable such reduction shall
commence and conclude in the same Yield Period.

     Section 1.5 Fees. The Seller shall pay to each Purchaser Agent for the benefit of the
Purchasers and Liquidity Providers in the related Purchaser Group in accordance with the provisions
set forth in Section 1.4(d) certain fees in the amounts and on the dates set forth in one
or more fee letter agreements, dated the Closing Date (or dated the date any such Purchaser and
member of its related Purchaser Group become a party hereto pursuant to an Assumption Agreement, a
Transfer Supplement or otherwise), among the Servicer, the Seller, and the applicable Purchaser
Agent, respectively (as any such fee letter agreement may be amended, restated, supplemented or
otherwise modified from time to time, each, a “Purchaser Group Fee Letter”) and each of the
Purchaser Group Fee Letters may be referred to collectively as, the “Fee Letters”).

     Section 1.6 Payments and Computations, Etc.

     (a) All amounts to be paid or deposited by the Seller or the Servicer hereunder shall be made
without reduction for offset or counterclaim and shall be paid or deposited no later than 2:00 p.m.
(New York City Time) on the day when due in same day funds to the account for each Purchaser
maintained by the applicable Purchaser Agent (or such other account as may be designated from time
to time by such Purchaser Agent to the Seller and the Servicer). All amounts received after 2:00
p.m. (New York City Time) will be deemed to have been received on the next Business Day.

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     (b) The Seller or the Servicer, as the case may be, shall, to the extent permitted by law, pay
interest on any amount not paid or deposited by the Seller or the Servicer, as the case may be,
when due hereunder, at an interest rate equal to 2.0% per annum above the Base Rate, payable on
demand.

     (c) All computations of interest under clause (b) and all computations of Discount,
Fees and other amounts hereunder shall be made on the basis of a year of 360 (or 365 or 366, as
applicable, with respect to Discount or other amounts calculated by reference to the Base Rate)
days for the actual number of days elapsed. Whenever any payment or deposit to be made hereunder
shall be due on a day other than a Business Day, such payment or deposit shall be made on the next
Business Day and such extension of time shall be included in the computation of such payment or
deposit.

     Section 1.7 Increased Costs. (a) If, after the date hereof, the Administrator, any
Purchaser, Liquidity Provider or Program Support Provider or any of their respective Affiliates
(each an “Affected Person”) determines that the existence of or compliance with: (i) any
law, rule or regulation (including any applicable law, rule or regulation regarding capital
adequacy) or any change therein or in the interpretation or application thereof, or (ii) any
request, guideline or directive from Financial Accounting Standards Board (“FASB”), or any
central bank or other Governmental Authority (whether or not having the force of law) affects or
would affect the amount of capital required or expected to be maintained by such Affected Person,
and such Affected Person determines that the amount of such capital is increased by or based upon
the existence of any commitment to make purchases of (or otherwise to maintain the investment in)
Pool Receivables or any related liquidity facility, credit enhancement facility and other
commitments of the same type, then, upon demand by such Affected Person (with a copy to the
Administrator), the Seller shall promptly pay such Affected Person, from time to time as specified
by such Affected Person, additional amounts sufficient to compensate such Affected Person in the
light of such circumstances, to the extent that such Affected Person determines such increase in
capital to be allocable to the existence of any of such commitments. For the avoidance of doubt,
if, after the date hereof, the issuance of FASB Interpretation No. 46, or any other change in
accounting standards or the issuance of any other pronouncement, release or interpretation, causes
or requires the consolidation of all or a portion of the assets and liabilities of any Conduit
Purchaser or the Seller with the assets and liabilities of such Affected Person, such event shall
constitute a circumstance on which such Person may base a claim for reimbursement under this
Section 1.7.

     (b) If, after the date hereof, due to either: (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) compliance with any guideline or request from
any central bank or other Governmental Authority (whether or not having the force of law), there
shall be any increase in the cost to any Affected Person of agreeing to purchase or purchasing, or
maintaining the ownership of, the Purchased Interest (or its portion thereof) in respect of which
Discount is computed by reference to the Euro-Rate, then, upon demand by such Affected Person, the
Seller shall promptly pay to such Affected Person, from time to time as specified by such Affected
Person, additional amounts sufficient to compensate such Affected Person for such increased costs.

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     Section 1.8 Requirements of Law. If, after the date hereof, any Affected Person
determines that the existence of or compliance with: (a) any law or regulation or any change
therein or in the interpretation or application thereof, or (b) any request, guideline or directive
from any central bank or other Governmental Authority (whether or not having the force of law):

     (i) does or shall subject such Affected Person to any tax of any kind whatsoever with
respect to this Agreement, any increase in the Purchased Interest (or its portion thereof)
or in the amount of Capital relating thereto, or does or shall change the basis of taxation
of payments to such Affected Person on account of Collections, Discount or any other amounts
payable hereunder, or

     (ii) does or shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, or deposits or other
liabilities in or for the account of, purchases, advances or loans by, or other credit
extended by, or any other acquisition of funds by, any office of such Affected Person that
are not otherwise included in the determination of the Euro-Rate hereunder,

and the result of any of the foregoing is: (A) to increase the cost to such Affected Person of
agreeing to purchase or purchasing or maintaining the ownership of undivided percentage ownership
interests with regard to the Purchased Interest (or interests therein) or any Portion of Capital,
or (B) to reduce any amount receivable hereunder (whether directly or indirectly), then, in any
such case, upon demand by such Affected Person, the Seller shall promptly pay to such Affected
Person additional amounts necessary to compensate such Affected Person for such additional cost or
reduced amount receivable. All such amounts shall be payable as incurred.

     Section 1.9 Funding Losses. The Seller shall compensate each Affected Person, upon
written request by such Person for all losses, expenses and liabilities (including any interest
paid by such Affected Person to lenders of funds borrowed by it to fund or maintain any Portion of
Capital hereunder at an interest rate determined by reference to the Euro-Rate and any loss
sustained by such Person in connection with the re-employment of such funds), which such Affected
Person may sustain with respect to funding or maintaining such Portion of Capital at the Euro-Rate
if, for any reason, at the applicable request by the Seller to fund or maintain such Portion of
Capital at an interest rate determined by reference to the Euro-Rate does not occur on a date
specified therefor.

     Section 1.10 Taxes. The Seller agrees that:

     Any and all payments by the Seller under this Agreement and any other Transaction
Document shall be made free and clear of and without deduction for any and all current or
future taxes, stamp or other taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto (all such taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If
the Seller shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder to any Purchaser, any Liquidity Provider, Program Support Provider or the
Administrator, then the sum payable shall be increased by the amount necessary to yield to
such Person (after payment of all Taxes) an amount equal to the sum it would have received
had no such deductions been made.

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     Whenever any Taxes are payable by the Seller, as promptly as possible thereafter, the
Seller shall send to the Administrator for its own account or for the account of any
Purchaser or any Liquidity Provider or other Program Support Provider, as the case may be, a
certified copy of an original official receipt showing payment thereof or such other
evidence of such payment as may be available to the Seller and acceptable to the taxing
authorities having jurisdiction over such Person. If the Seller fails to pay any Taxes when
due to the appropriate taxing authority or fails to remit to the Administrator the required
receipts or other required documentary evidence, the Seller shall indemnify the
Administrator and/or any other Affected Person, as applicable, for any incremental taxes,
interest or penalties that may become payable by such party as a result of any such failure.

     Section 1.11 Inability to Determine Euro-Rate. (a) If the Administrator (or any
Purchaser Agent) determines before the first day of any Yield Period (which determination shall be
final and conclusive) that, by reason of circumstances affecting the interbank eurodollar market
generally (i) deposits in dollars (in the relevant amounts for such Yield Period) are not being
offered to banks in the interbank eurodollar market for such Yield Period, (ii) adequate means do
not exist for ascertaining the Euro-Rate for such Yield Period or (iii) the Euro-Rate does not
accurately reflect the cost to any Purchaser (as determined by the related Purchaser or the
applicable Purchaser Agent) of maintaining any Portion of Capital during such Yield Period, then
the Administrator shall give notice thereof to the Seller. Thereafter, until the Administrator or
such Purchaser Agent notifies the Seller that the circumstances giving rise to such suspension no
longer exist, (a) no Portion of Capital shall be funded at the Yield Rate determined by reference
to the Euro-Rate and (b) the Discount for any outstanding Portions of Capital then funded at the
Yield Rate determined by reference to the Euro-Rate shall, on the last day of the then current
Yield Period, be converted to the Yield Rate determined by reference to the Base Rate.

     (b) If, on or before the first day of any Yield Period, the Administrator shall have been
notified by any Purchaser, Purchaser Agent or Liquidity Provider that, such Person has determined
(which determination shall be final and conclusive) that, any enactment, promulgation or adoption
of or any change in any applicable law, rule or regulation, or any change in the interpretation or
administration thereof by a governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof, or compliance by such Person with any guideline,
request or directive (whether or not having the force of law) of any such authority, central bank
or comparable agency shall make it unlawful or impossible for such Person to fund or maintain any
Portion of Capital at the Yield Rate and based upon the Euro-Rate, the Administrator shall notify
the Seller thereof. Upon receipt of such notice, until the Administrator notifies the Seller that
the circumstances giving rise to such determination no longer apply, (a) no Portion of Capital
shall be funded at the Yield Rate determined by reference to the Euro-Rate and (b) the Discount for
any outstanding Portions of Capital then funded at the Yield Rate determined by reference to the
Euro-Rate shall be converted to the Yield Rate determined by reference to the Base Rate either (i)
on the last day of the then current Yield Period if such Person may lawfully continue to maintain
such Portion of Capital at the Yield Rate determined by reference to the Euro-Rate to such day, or
(ii) immediately, if such Person may not lawfully continue to maintain such Portion of Capital at
the Yield Rate determined by reference to the Euro-Rate to such day.

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     Section 1.12 Extension of Termination Date. The Seller may advise the Administrator
and each Purchaser Agent in writing of its desire to extend the then current Facility Termination
Date; provided such request is made not more than 120 days prior to, and not less than 90
days prior to, the then current Facility Termination Date. In the event that the Purchasers are
all agreeable to such extension, the Administrator shall so notify the Seller in writing (it
being understood that the Purchasers may accept or decline such a request in their sole
discretion and on such terms as they may elect) not less than 30 days prior to the then current
Facility Termination Date and the Seller, the Servicer, the Administrator, the Purchaser Agents and
the Purchasers shall enter into such documents as the Purchasers may deem necessary or appropriate
to reflect such extension, and all reasonable costs and expenses incurred by the Purchasers, the
Administrator and the Purchaser Agents in connection therewith (including reasonable Attorneys’
Costs) shall be paid by the Seller. In the event any Purchaser declines the request for such
extension, such Purchaser (or the applicable Purchaser Agent on its behalf) shall so notify the
Administrator and the Administrator shall so notify the Seller of such determination;
provided, however, that the failure of the Administrator to notify the Seller of
the determination to decline such extension shall not affect the understanding and agreement that
the applicable Purchasers shall be deemed to have refused to grant the requested extension in the
event the Administrator fails to affirmatively notify the Seller, in writing, of their agreement to
accept the requested extension.

ARTICLE II

REPRESENTATIONS AND WARRANTIES; COVENANTS;

TERMINATION EVENTS

     Section 2.1 Representations and Warranties; Covenants. Each of the Seller and the
Servicer hereby makes the representations and warranties, and hereby agrees to perform and observe
the covenants, applicable to it set forth in Exhibits III and IV, respectively.

     Section 2.2 Termination Events. If any of the Termination Events set forth in
Exhibit V shall occur, the Administrator may (with the consent of the Majority Purchaser
Agents) or shall (at the direction of the Majority Purchaser Agents), by notice to the Seller,
declare the Facility Termination Date to have occurred (in which case the Facility Termination Date
shall be deemed to have occurred); provided, that automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice) described in
paragraph (f) of Exhibit V, the Facility Termination Date shall occur. Upon any
such declaration, occurrence or deemed occurrence of the Facility Termination Date, the
Administrator, each Purchaser Agent and each Purchaser shall have, in addition to the rights and
remedies that they may have under this Agreement, all other rights and remedies provided after
default under the UCC and under other applicable law, which rights and remedies shall be
cumulative.

ARTICLE III

INDEMNIFICATION

     Section 3.1 Indemnities by the Seller. Without limiting any other rights any such
Person may have hereunder or under applicable law, the Seller hereby indemnifies and holds

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harmless, on an after-tax basis, the Administrator, each Purchaser Agent, each Liquidity
Provider, each Program Support Provider and each Purchaser and their respective officers,
directors, agents and employees (each an “Indemnified Party”) from and against any and all
damages, losses, claims, liabilities, penalties, Taxes, costs and expenses (including reasonable
attorneys’ fees and court costs) (all of the foregoing collectively, the “Indemnified
Amounts”) at any time imposed on or incurred by any Indemnified Party arising out of or
otherwise relating to any Transaction Document, the transactions contemplated thereby or the
acquisition of any portion of the Purchased Interest, or any action taken or omitted by any of the
Indemnified Parties (including any action taken by the Administrator as attorney-in-fact for the
Seller or any Originator hereunder or under any other Transaction Document), whether arising by
reason of the acts to be performed by the Seller hereunder or otherwise, excluding only Indemnified
Amounts to the extent (a) a final judgment of a court of competent jurisdiction holds that such
Indemnified Amounts resulted from gross negligence or willful misconduct of the Indemnified Party
seeking indemnification, (b) due to the credit risk of the Obligor and for which reimbursement
would constitute recourse to any Originator, the Seller or the Servicer for uncollectible
Receivables or (c) such Indemnified Amounts include Taxes imposed or based on, or measured by, the
gross or net income or receipts of such Indemnified Party by the jurisdiction under the laws of
which such Indemnified Party is organized (or any political subdivision thereof); provided,
however, that nothing contained in this sentence shall limit the liability of the Seller or
the Servicer or limit the recourse of any Indemnified Party to the Seller or the Servicer for any
amounts otherwise specifically provided to be paid by the Seller or the Servicer hereunder.
Without limiting the foregoing indemnification, but subject to the limitations set forth in
clauses (a), (b) and (c) of the previous sentence, the Seller shall
indemnify each Indemnified Party for Amounts (including losses in respect of uncollectible
Receivables, regardless, for purposes of these specific matters, whether reimbursement therefor
would constitute recourse to the Seller or the Servicer) relating to or resulting from:

     (i) any representation or warranty made by the Seller (or any employee or agent of the
Seller) under or in connection with this Agreement, any Information Package or any other
information or report delivered by or on behalf of the Seller pursuant hereto, which shall
have been false or incorrect in any respect when made or deemed made;

     (ii) the failure by the Seller to comply with any applicable law, rule or regulation
related to any Receivable, or the nonconformity of any Receivable with any such applicable
law, rule or regulation;

     (iii) the failure of the Seller to vest and maintain vested in the Administrator, for
the benefit of the Purchasers, a perfected ownership or security interest in the Purchased
Interest and the property conveyed hereunder, free and clear of any Adverse Claim;

     (iv) any commingling of funds to which the Administrator, any Purchaser Agent or any
Purchaser is entitled hereunder with any other funds;

     (v) any failure of a Lock-Box Bank to comply with the terms of the applicable Lock-Box
Agreement;

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     (vi) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable, or any other claim resulting from
the sale or lease of goods or the rendering of services related to such Receivable or the
furnishing or failure to furnish any such goods or services or other similar claim or
defense not arising from the financial inability of any Obligor to pay undisputed
indebtedness;

     (vii) any failure of the Seller, to perform its duties or obligations in accordance
with the provisions of this Agreement or any other Transaction Document to which it is a
party;

     (viii) any action taken by the Administrator as attorney-in-fact for the Seller or any
Originator pursuant to this Agreement or any other Transaction Document; or

     (ix) any environmental liability claim, products liability claim or personal injury or
property damage suit or other similar or related claim or action of whatever sort, arising
out of or in connection with any Receivable or any other suit, claim or action of whatever
sort relating to any of the Transaction Documents.

     Section 3.2 Indemnities by the Servicer. Without limiting any other rights that any
Indemnified Party may have hereunder or under applicable law, the Servicer hereby agrees to
indemnify each Indemnified Party from and against any and all Indemnified Amounts arising out of or
resulting from (whether directly or indirectly): (a) the failure of any information contained in
any Information Package to be true and correct, or the failure of any other information provided to
such Indemnified Party by, or on behalf of, the Servicer to be true and correct, (b) the failure of
any representation, warranty or statement made or deemed made by the Servicer (or any of its
officers) under or in connection with this Agreement or any other Transaction Document to which it
is a party to have been true and correct as of the date made or deemed made in all respects when
made, (c) the failure by the Servicer to comply with any applicable law, rule or regulation with
respect to any Pool Receivable or the related Contract, (d) any dispute, claim, offset or defense
of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool
resulting from or related to the collection activities with respect to such Receivable or (e) any
failure of the Servicer to perform its duties or obligations in accordance with the provisions
hereof or any other Transaction Document to which it is a party.

ARTICLE IV

ADMINISTRATION AND COLLECTIONS

     Section 4.1 Appointment of the Servicer.

     (a) The servicing, administering and collection of the Pool Receivables shall be conducted by
the Person so designated from time to time as the Servicer in accordance with this Section
4.1. Until the Administrator gives notice to Cooper Tire (in accordance with this Section
4.1) of the designation of a new Servicer, Cooper Tire is hereby designated as, and hereby
agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. Upon
the occurrence of a Termination Event, the Administrator may (with the consent of the Majority

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Purchaser Agents) or shall (at the direction of the Majority Purchaser Agents) designate as
Servicer any Person (including itself) to succeed Cooper Tire or any successor Servicer, on the
condition in each case that any such Person so designated shall agree to perform the duties and
obligations of the Servicer pursuant to the terms hereof.

     (b) Upon the designation of a successor Servicer as set forth in clause (a), Cooper
Tire agrees that it will terminate its activities as Servicer hereunder in a manner that the
Administrator determines will facilitate the transition of the performance of such activities to
the new Servicer, and Cooper Tire shall cooperate with and assist such new Servicer. Such
cooperation shall include access to and transfer of related records (including all Contracts) and
use by the new Servicer of all licenses, hardware or software necessary or desirable to collect the
Pool Receivables and the Related Security.

     (c) Cooper Tire acknowledges that, in making their decision to execute and deliver this
Agreement, the Administrator and each member in each Purchaser Group have relied on Cooper Tire’s
agreement to act as Servicer hereunder. Accordingly, Cooper Tire agrees that it will not
voluntarily resign as Servicer.

     (d) The Servicer may delegate its duties and obligations hereunder to any subservicer (each a
“Sub-Servicer”); provided, that, in each such delegation: (i) such Sub-Servicer
shall agree in writing to perform the duties and obligations of the Servicer pursuant to the terms
hereof, (ii) the Servicer shall remain liable for the performance of the duties and obligations so
delegated, (iii) the Seller, the Administrator and each Purchaser Group shall have the right to
look solely to the Servicer for performance, and (iv) the terms of any agreement with any
Sub-Servicer shall provide that the Administrator may terminate such agreement upon the termination
of the Servicer hereunder by giving notice of its desire to terminate such agreement to the
Servicer (and the Servicer shall provide appropriate notice to each such Sub-Servicer);
provided, however, that if any such delegation is to any Person other than an
Originator or an Affiliate thereof, the Administrator and the Majority Purchaser Agents shall have
consented in writing in advance to such delegation.

     Section 4.2 Duties of the Servicer.

     (a) The Servicer shall take or cause to be taken all such action as may be necessary or
advisable to administer and collect each Pool Receivable from time to time, all in accordance with
this Agreement and all applicable laws, rules and regulations, with reasonable care and diligence,
and in accordance with the Credit and Collection Policies. The Servicer shall set aside for the
accounts of the Seller and each Purchaser Group the amount of Collections to which each such
Purchaser Group is entitled in accordance with Article I hereof. The Servicer may correct
errors in Receivables and records of Receivables, including correcting to conform to applicable
laws, rules and regulations, and to the applicable Contract, and, in accordance with the applicable
Credit and Collection Policy, take such action, including modifications, waivers or restructurings
of Pool Receivables and the related Contracts, as the Servicer may reasonably determine to be
appropriate to maximize Collections thereof or reflect adjustments permitted under the Credit and
Collection Policy; provided, however, that: (i) corrections, modifications,
waivers and restructurings shall not alter the status of such Pool Receivable as a Delinquent
Receivable or a Defaulted Receivable or limit the rights of any Purchaser, Purchaser Agent or the
Administrator

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under this Agreement and (ii) if a Termination Event or an Unmatured Termination Event has
occurred and is continuing and Cooper Tire or an Affiliate thereof is serving as the Servicer,
Cooper Tire or such Affiliate may make such extension or adjustment only upon the prior approval of
the Administrator. The Seller shall deliver to the Servicer and the Servicer shall hold for the
benefit of the Seller and the Administrator (individually and for the benefit of each Purchaser
Group, in accordance with their respective interests, all records and documents (including computer
tapes or disks) with respect to each Pool Receivable. Notwithstanding anything to the contrary
contained herein, the Administrator may direct the Servicer (whether the Servicer is Cooper Tire or
any other Person) to commence or settle any legal action to enforce collection of any Pool
Receivable or to foreclose upon or repossess any Related Security.

     (b) The Servicer shall, as soon as practicable following actual receipt of collected funds,
turn over to the Seller the collections of any indebtedness that is not a Pool Receivable, less, if
Cooper Tire or an Affiliate thereof is not the Servicer, all reasonable and appropriate
out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering such
collections. The Servicer, if other than Cooper Tire or an Affiliate thereof, shall, as soon as
practicable upon demand, deliver to the Seller all records in its possession that evidence or
relate to any indebtedness that is not a Pool Receivable, and copies of records in its possession
that evidence or relate to any indebtedness that is a Pool Receivable.

     (c) The Servicer’s obligations hereunder shall terminate on the later of: (i) the Facility
Termination Date and (ii) the date on which all amounts required to be paid to the Purchaser
Agents, each Purchaser, the Administrator and any other Indemnified Party or Affected Person
hereunder shall have been paid in full.

     After such termination, if Cooper Tire or an Affiliate thereof was not the Servicer on the
date of such termination, the Servicer shall promptly deliver to the Seller all books, records and
related materials that the Seller previously provided to the Servicer, or that have been obtained
by the Servicer, in connection with this Agreement.

     Section 4.3 Lock-Box Account Arrangements. Prior to the Closing Date, the Seller
shall have entered into Lock-Box Agreements with all of the Lock-Box Banks (other than the bank
maintaining the CAD Lock-Box Account) and delivered original counterparts of each to the
Administrator, and, (i) no later than ninety (90) days from the Closing Date, the Seller shall have
terminated (or caused to be terminated) the SunTrust Account, and instructed all applicable
Obligors to remit Collections to a Lock-Box Account and (ii) no later than thirty (30) days from
the Closing Date, the Seller shall have entered into a Lock-Box Agreement covering the CAD Lock-Box
Account. Upon the occurrence of a Termination Event or Unmatured Termination Event, the
Administrator may (with the consent of the Majority Purchaser Agents) or shall (upon the direction
of the Majority Purchaser Agents) at any time thereafter give notice to each Lock-Box Bank that the
Administrator is exercising its rights under the Lock-Box Agreements to do any or all of the
following: (a) to have the exclusive ownership and control of the Lock-Box Accounts transferred to
the Administrator (for the benefit of the Purchasers) and to exercise exclusive dominion and
control over the funds deposited therein, (b) to have the proceeds that are sent to the respective
Lock-Box Accounts redirected pursuant to the Administrator’s instructions rather than deposited in
the applicable Lock-Box Account, and (c) to take any or all other actions permitted under the
applicable Lock-Box Agreement. The Seller hereby agrees that

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if the Administrator at any time takes any action set forth in the preceding sentence, the
Administrator shall have exclusive control (for the benefit of the Purchasers) of the proceeds
(including Collections) of all Pool Receivables and the Seller hereby further agrees to take any
other action that the Administrator or any Purchaser Agent may reasonably request to transfer such
control. Any proceeds of Pool Receivables received by the Seller or the Servicer thereafter shall
be sent immediately to, or as otherwise instructed by, the Administrator. The parties hereto hereby
acknowledge that if at any time the Administrator takes control of any Lock-Box Account, the
Administrator shall not have any rights to the funds therein in excess of the unpaid amounts due to
the Administrator, any member of any Purchaser Group, any Indemnified Party or Affected Person or
any other Person hereunder, and the Administrator shall distribute or cause to be distributed such
funds in accordance with Section 4.2(b) and Article I (in each case as if such
funds were held by the Servicer thereunder).

     Section 4.4 Enforcement Rights.

     (a) At any time following the occurrence of a Termination Event:

     (i) the Administrator may direct the Obligors that payment of all amounts payable under
any Pool Receivable is to be made directly to the Administrator or its designee,

     (ii) the Administrator may instruct the Seller or the Servicer to give notice of the
Purchaser Groups’ interest in Pool Receivables to each Obligor, which notice shall direct
that payments be made directly to the Administrator or its designee (on behalf of such
Purchaser Groups), and the Seller or the Servicer, as the case may be, shall give such
notice at the expense of the Seller or the Servicer, as the case may be; provided,
that if the Seller or the Servicer, as the case may be, fails to so notify each Obligor, the
Administrator (at the Seller’s or the Servicer’s, as the case may be, expense) may so notify
the Obligors, and

     (iii) the Administrator may request the Servicer to, and upon such request the Servicer
shall: (A) assemble all of the records necessary or desirable to collect the Pool
Receivables and the Related Security, and transfer or license to a successor Servicer the
use of all software necessary or desirable to collect the Pool Receivables and the Related
Security, and make the same available to the Administrator or its designee (for the benefit
of the Purchasers) at a place selected by the Administrator, and (B) segregate all cash,
checks and other instruments received by it from time to time constituting Collections in a
manner acceptable to the Administrator and, promptly upon receipt, remit all such cash,
checks and instruments, duly endorsed or with duly executed instruments of transfer, to the
Administrator or its designee.

     (b) The Seller hereby authorizes the Administrator (on behalf of each Purchaser Group), and
irrevocably appoints the Administrator as its attorney-in-fact with full power of substitution and
with full authority in the place and stead of the Seller, which appointment is coupled with an
interest, to take any and all steps in the name of the Seller and on behalf of the Seller necessary
or desirable, in the determination of the Administrator, after the occurrence of a Termination
Event, to collect any and all amounts or portions thereof due under any and all Pool

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Assets, including endorsing the name of the Seller on checks and other instruments
representing Collections and enforcing such Pool Assets. Notwithstanding anything to the contrary
contained in this subsection, none of the powers conferred upon such attorney-in-fact pursuant to
the preceding sentence shall subject such attorney-in-fact to any liability if any action taken by
it shall prove to be inadequate or invalid, nor shall they confer any obligations upon such
attorney-in-fact in any manner whatsoever.

     Section 4.5 Responsibilities of the Seller.

     (a) Anything herein to the contrary notwithstanding, the Seller shall: (i) perform all of its
obligations, if any, under the Contracts related to the Pool Receivables to the same extent as if
interests in such Pool Receivables had not been transferred hereunder, and the exercise by the
Administrator, the Purchaser Agents or the Purchasers of their respective rights hereunder shall
not relieve the Seller from such obligations, and (ii) pay when due any taxes, including any sales
taxes payable in connection with the Pool Receivables and their creation and satisfaction. The
Administrator, the Purchaser Agents or any of the Purchasers shall not have any obligation or
liability with respect to any Pool Asset, nor shall any of them be obligated to perform any of the
obligations of the Seller, Servicer, Cooper Tire or the Originators thereunder.

     (b) Cooper Tire hereby irrevocably agrees that if at any time it shall cease to be the
Servicer hereunder, it shall act (if the then-current Servicer so requests) as the data-processing
agent of the Servicer and, in such capacity, Cooper Tire shall conduct the data-processing
functions of the administration of the Receivables and the Collections thereon in substantially the
same way that Cooper Tire conducted such data-processing functions while it acted as the Servicer.

     Section 4.6 Servicing Fee. (a) Subject to clause (b), the Servicer shall be
paid a fee (the “Servicing Fee”) equal to 1.00% per annum (the “Servicing Fee
Rate”) of the daily average aggregate Outstanding Balance of the Pool Receivables. The
Purchasers’ Share of such fee shall be paid through the distributions contemplated by Section
1.4(d), and the Seller’s Share of such fee shall be paid directly by the Seller.

     (b) If the Servicer ceases to be Cooper Tire or an Affiliate thereof, the servicing fee shall
be the greater of: (i) the amount calculated pursuant to clause (a), and (ii) an
alternative amount specified by the successor Servicer not to exceed 110% of the aggregate
reasonable costs and expenses incurred by such successor Servicer in connection with the
performance of its obligations as Servicer.

ARTICLE V

THE AGENTS

     Section 5.1 Appointment and Authorization. (a) Each Purchaser and Purchaser Agent
hereby irrevocably designates and appoints PNC Bank, National Association, as the “Administrator”
hereunder and authorizes the Administrator to take such actions and to exercise such powers as are
delegated to the Administrator hereby and to exercise such other powers as are reasonably
incidental thereto. The Administrator shall hold, in its name, for the benefit of

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each Purchaser, ratably, the Purchased Interest. The Administrator shall not have any duties
other than those expressly set forth herein or any fiduciary relationship with any Purchaser or
Purchaser Agent, and no implied obligations or liabilities shall be read into this Agreement, or
otherwise exist, against the Administrator. The Administrator does not assume, nor shall it be
deemed to have assumed, any obligation to, or relationship of trust or agency with, the Seller or
Servicer. Notwithstanding any provision of this Agreement or any other Transaction Document to the
contrary, in no event shall the Administrator ever be required to take any action which exposes the
Administrator to personal liability or which is contrary to the provision of any Transaction
Document or applicable law.

     (b) Each Purchaser hereby irrevocably designates and appoints the respective institution
identified as the Purchaser Agent for such Purchaser’s Purchaser Group on the signature pages
hereto or in the Assumption Agreement or Transfer Supplement pursuant to which such Purchaser
becomes a party hereto, and each authorizes such Purchaser Agent to take such action on its behalf
under the provisions of this Agreement and to exercise such powers and perform such duties as are
expressly delegated to such Purchaser Agent by the terms of this Agreement, if any, together with
such other powers as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities,
except those expressly set forth herein, or any fiduciary relationship with any Purchaser or other
Purchaser Agent or the Administrator, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities on the part of such Purchaser Agent shall be read into this
Agreement or otherwise exist against such Purchaser Agent.

     (c) Except as otherwise specifically provided in this Agreement, the provisions of this
Article V are solely for the benefit of the Purchaser Agents, the Administrator and the
Purchasers, and none of the Seller or Servicer shall have any rights as a third-party beneficiary
or otherwise under any of the provisions of this Article V, except that this Article
V shall not affect any obligations which any Purchaser Agent, the Administrator or any
Purchaser may have to the Seller or the Servicer under the other provisions of this Agreement.
Furthermore, no Purchaser shall have any rights as a third-party beneficiary or otherwise under any
of the provisions hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such
Purchaser.

     (d) In performing its functions and duties hereunder, the Administrator shall act solely as
the agent of the Purchasers and the Purchaser Agents and does not assume nor shall be deemed to
have assumed any obligation or relationship of trust or agency with or for the Seller or Servicer
or any of their successors and assigns. In performing its functions and duties hereunder, each
Purchaser Agent shall act solely as the agent of its respective Purchaser and does not assume nor
shall be deemed to have assumed any obligation or relationship of trust or agency with or for the
Seller, the Servicer, any other Purchaser, any other Purchaser Agent or the Administrator, or any
of their respective successors and assigns.

     Section 5.2 Delegation of Duties. The Administrator may execute any of its duties
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrator shall not be responsible for the negligence
or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

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     Section 5.3 Exculpatory Provisions. None of the Purchaser Agents, the Administrator
or any of their respective directors, officers, agents or employees shall be liable for any action
taken or omitted (i) with the consent or at the direction of the Majority Purchaser Agents (or in
the case of any Purchaser Agent, the Purchasers within its Purchaser Group that have a majority of
the aggregate Commitment of such Purchaser Group) or (ii) in the absence of such Person’s gross
negligence or willful misconduct. The Administrator shall not be responsible to any Purchaser,
Purchaser Agent or other Person for (i) any recitals, representations, warranties or other
statements made by the Seller, the Servicer, any Originator or any of their Affiliates, (ii) the
value, validity, effectiveness, genuineness, enforceability or sufficiency of any Transaction
Document, (iii) any failure of the Seller, the Servicer, any Originator or any of their Affiliates
to perform any obligation hereunder or under the other Transaction Documents to which it is a party
(or under any Contract), or (iv) the satisfaction of any condition specified in Exhibit II.
The Administrator shall not have any obligation to any Purchaser or Purchaser Agent to ascertain
or inquire about the observance or performance of any agreement contained in any Transaction
Document or to inspect the properties, books or records of the Seller, the Servicer, any Originator
or any of their respective Affiliates.

     Section 5.4 Reliance by Agents. (a) Each Purchaser Agent and the Administrator shall
in all cases be entitled to rely, and shall be fully protected in relying, upon any document or
other writing or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person and upon advice and statements of legal counsel (including
counsel to the Seller), independent accountants and other experts selected by the Administrator.
Each Purchaser Agent and the Administrator shall in all cases be fully justified in failing or
refusing to take any action under any Transaction Document unless it shall first receive such
advice or concurrence of the Majority Purchaser Agents (or in the case of any Purchaser Agent, the
Purchasers within its Purchaser Group that have a majority of the aggregate Commitment of such
Purchaser Group), and assurance of its indemnification, as it deems appropriate.

     (b) The Administrator shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of the Majority Purchaser Agents or the
Purchaser Agents, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all Purchasers, the Administrator and Purchaser Agents.

     (c) The Purchasers within each Purchaser Group with a majority of the Commitment of such
Purchaser Group shall be entitled to request or direct the related Purchaser Agent to take action,
or refrain from taking action, under this Agreement on behalf of such Purchasers. Such Purchaser
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement in accordance with a request of such Majority Purchaser Agents, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all of such Purchaser Agent’s
Purchasers.

     (d) Unless otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose
behalf such Purchaser Agent is purportedly acting, each party to this Agreement may assume that (i)
such Purchaser Agent is acting for the benefit of each of the Purchasers in respect of which such
Purchaser Agent is identified as being the “Purchaser Agent” in the definition of “Purchaser Agent”
hereto, as well as for the benefit of each assignee or other transferee from any such Person, and
(ii) each action taken by such Purchaser Agent has been duly authorized and

-20-

 

approved by all necessary action on the part of the Purchasers on whose behalf it is
purportedly acting. Each Purchaser Agent and its Purchaser(s) shall agree amongst themselves as to
the circumstances and procedures for removal, resignation and replacement of such Purchaser Agent.

     Section 5.5 Notice of Termination Events. Neither any Purchaser Agent nor the
Administrator shall be deemed to have knowledge or notice of the occurrence of any Termination
Event or Unmatured Termination Event unless such Administrator has received notice from any
Purchaser, Purchaser Agent, the Servicer or the Seller stating that a Termination Event or an
Unmatured Termination Event has occurred hereunder and describing such Termination Event or
Unmatured Termination Event. In the event that the Administrator receives such a notice, it shall
promptly give notice thereof to each Purchaser Agent whereupon each such Purchaser Agent shall
promptly give notice thereof to its related Purchasers. In the event that a Purchaser Agent
receives such a notice (other than from the Administrator), it shall promptly give notice thereof
to the Administrator. The Administrator shall take such action concerning a Termination Event or
an Unmatured Termination Event as may be directed by the Majority Purchaser Agents unless such
action otherwise requires the consent of all Purchasers), but until the Administrator receives such
directions, the Administrator may (but shall not be obligated to) take such action, or refrain from
taking such action, as the Administrator deems advisable and in the best interests of the
Purchasers and the Purchaser Agents.

     Section 5.6 Non-Reliance on Administrator, Purchaser Agents and Other Purchasers.
Each Purchaser expressly acknowledges that none of the Administrator, the Purchaser Agents nor any
of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Administrator, or any Purchaser
Agent hereafter taken, including any review of the affairs of the Seller, Cooper Tire, the Servicer
or any Originator, shall be deemed to constitute any representation or warranty by the
Administrator or such Purchaser Agent, as applicable. Each Purchaser represents and warrants to
the Administrator and the Purchaser Agents that, independently and without reliance upon the
Administrator, Purchaser Agents or any other Purchaser and based on such documents and information
as it has deemed appropriate, it has made and will continue to make its own appraisal of and
investigation into the business, operations, property, prospects, financial and other conditions
and creditworthiness of the Seller, Cooper Tire, the Servicer or the Originators, and the
Receivables and its own decision to enter into this Agreement and to take, or omit, action under
any Transaction Document. Except for items specifically required to be delivered hereunder, the
Administrator shall not have any duty or responsibility to provide any Purchaser Agent with any
information concerning the Seller, Cooper Tire, the Servicer or the Originators or any of their
Affiliates that comes into the possession of the Administrator or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.

     Section 5.7 Administrators and Affiliates. Each of the Purchasers and the
Administrator and any of their respective Affiliates may extend credit to, accept deposits from and
generally engage in any kind of banking, trust, debt, entity or other business with the Seller,
Cooper Tire, the Servicer or any Originator or any of their Affiliates. With respect to the
acquisition of the Eligible Receivables pursuant to this Agreement, each of the Purchaser Agents
and the Administrator shall have the same rights and powers under this Agreement as any Purchaser
and may exercise the same as though it were not such an agent, and the terms

-21-

 

“Purchaser” and “Purchasers” shall include, to the extent applicable, each of the Purchaser
Agents and the Administrator in their individual capacities.

     Section 5.8 Indemnification. Each Related Committed Purchaser shall indemnify and
hold harmless the Administrator (but solely in its capacity as Administrator) and its officers,
directors, employees, representatives and agents (to the extent not reimbursed by the Seller, the
Servicer or any Originator and without limiting the obligation of the Seller, the Servicer, or any
Originator to do so), ratably (based on its Commitment) from and against any and all liabilities,
obligations, losses, damages, penalties, judgments, settlements, costs, expenses and disbursements
of any kind whatsoever (including in connection with any investigative or threatened proceeding,
whether or not the Administrator or such Person shall be designated a party thereto) that may at
any time be imposed on, incurred by or asserted against the Administrator or such Person as a
result of, or related to, any of the transactions contemplated by the Transaction Documents or the
execution, delivery or performance of the Transaction Documents or any other document furnished in
connection therewith (but excluding any such liabilities, obligations, losses, damages, penalties,
judgments, settlements, costs, expenses or disbursements resulting solely from the gross negligence
or willful misconduct of the Administrator or such Person as finally determined by a court of
competent jurisdiction).

     Section 5.9 Successor Administrator. The Administrator may, upon at least five (5)
days’ notice to the Seller, each Purchaser and Purchaser Agent, resign as Administrator. Such
resignation shall not become effective until a successor Administrator is appointed by the Majority
Purchaser Agents and has accepted such appointment. Upon such acceptance of its appointment as
Administrator hereunder by a successor Administrator, such successor Administrator shall succeed to
and become vested with all the rights and duties of the retiring Administrator, and the retiring
Administrator shall be discharged from its duties and obligations under the Transaction Documents.
After any retiring Administrator’s resignation hereunder, the provisions of Sections 3.1
and 3.2 and this Article V shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was the Administrator.

ARTICLE VI

MISCELLANEOUS

     Section 6.1 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or any other Transaction Document, or consent to any departure by the Seller or the
Servicer therefrom, shall be effective unless in a writing signed by the Administrator and each of
the Majority Purchaser Agents, and, in the case of any amendment, by the other parties thereto; and
then such amendment, waiver or consent shall be effective only in the specific instance and for the
specific purpose for which given; provided, however, that, to the extent required
by the securitization program of any Conduit Purchaser, no such material amendment shall be
effective until the Rating Agency Condition shall have been satisfied with respect thereto (the
Administrator hereby agrees to provide executed copies of any material amendment to or waiver of
any provision of this Agreement to the Rating Agencies); provided, further that no
such amendment or waiver shall, without the consent of each affected Purchaser, (A) extend the date
of any payment or deposit of Collections by the Seller or the Servicer, (B) reduce the rate or
extend the time of payment of Discount, (C) reduce any fees payable to the Administrator, any

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Purchaser Agent or any Purchaser pursuant to the applicable Purchaser Group Fee Letter, (D)
change the amount of Capital of any Purchaser, any Purchaser’s pro rata share of the Purchased
Interest or any Related Committed Purchaser’s Commitment, (E) amend, modify or waive any provision
of the definition of “Majority Purchaser Agents” or this Section 6.1, (F) consent to or
permit the assignment or transfer by the Seller of any of its rights and obligations under this
Agreement, (G) change the definition of “Eligible Receivable,” “Loss Reserve,” “Loss Reserve
Percentage,” “Dilution Reserve,” “Dilution Reserve Percentage”, “Specifically Reserved Dilution
Amount” or “Termination Event”, or (H) amend or modify any defined term (or any defined term used
directly or indirectly in such defined term) used in clauses (A) through (G) above in a manner that
would circumvent the intention of the restrictions set forth in such clauses. No failure on the
part of the Purchasers, the Purchaser Agents or the Administrator to exercise, and no delay in
exercising any right hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any right hereunder preclude any other or further exercise thereof or the exercise of
any other right.

     Section 6.2 Notices, Etc. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including facsimile communication) and shall
be personally delivered or sent by facsimile, or by overnight mail, to the intended party at the
mailing address or facsimile number of such party set forth under its name on the signature pages
hereof (or in any other document or agreement pursuant to which it is or became a party hereto), or
at such other address or facsimile number as shall be designated by such party in a written notice
to the other parties hereto. All such notices and communications shall be effective (i) if
delivered by overnight mail, when received, and (ii) if transmitted by facsimile, when sent,
receipt confirmed by telephone or electronic means.

     Section 6.3 Successors and Assigns; Participations; Assignments.

     (a) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. Except as otherwise
provided herein, neither the Seller nor the Servicer may assign or transfer any of its rights or
delegate any of its duties hereunder or under any Transaction Document without the prior consent of
the Administrator and the Purchaser Agents.

     (b) Participations. Except as otherwise specifically provided herein, any Purchaser
may sell to one or more Persons (each a “Participant”) participating interests in the
interests of such Purchaser hereunder; provided, however, that no Purchaser shall
grant any participation under which the Participant shall have rights to approve any amendment to
or waiver of this Agreement or any other Transaction Document. Such Purchaser shall remain solely
responsible for performing its obligations hereunder, and the Seller, each Purchaser Agent and the
Administrator shall continue to deal solely and directly with such Purchaser in connection with
such Purchaser’s rights and obligations hereunder. A Purchaser shall not agree with a Participant
to restrict such Purchaser’s right to agree to any amendment hereto, except amendments that require
the consent of all Purchasers.

     (c) Assignments by Certain Related Committed Purchasers. Any Related Committed
Purchaser may assign to one or more Persons (each a “Purchasing Related Committed
Purchaser”), reasonably acceptable to the Administrator and the related Purchaser Agent in its

-23-

 

sole discretion, any portion of its Commitment pursuant to a supplement hereto, substantially
in the form of Annex D with any changes as have been approved by the parties thereto (each,
a “Transfer Supplement”), executed by each such Purchasing Related Committed Purchaser,
such selling Related Committed Purchaser, such related Purchaser Agent and the Administrator. Any
such assignment by Related Committed Purchaser cannot be for an amount less than $10,000,000. Upon
(i) the execution of the Transfer Supplement, (ii) delivery of an executed copy thereof to the
Seller, such related Purchaser Agent and the Administrator and (iii) payment by the Purchasing
Related Committed Purchaser to the selling Related Committed Purchaser of the agreed purchase
price, if any, such selling Related Committed Purchaser shall be released from its obligations
hereunder to the extent of such assignment and such Purchasing Related Committed Purchaser shall
for all purposes be a Related Committed Purchaser party hereto and shall have all the rights and
obligations of a Related Committed Purchaser hereunder to the same extent as if it were an original
party hereto. The amount of the Commitment of the selling Related Committed Purchaser allocable to
such Purchasing Related Committed Purchaser shall be equal to the amount of the Commitment of the
selling Related Committed Purchaser transferred regardless of the purchase price, if any, paid
therefor. The Transfer Supplement shall be an amendment hereof only to the extent necessary to
reflect the addition of such Purchasing Related Committed Purchaser as a “Related Committed
Purchaser” and any resulting adjustment of the selling Related Committed Purchaser’s Commitment.

     (d) Assignments to Liquidity Providers and other Program Support Providers. Any
Conduit Purchaser may at any time grant to one or more of its Liquidity Providers or other Program
Support Providers, participating interests in its portion of the Purchased Interest. In the event
of any such grant by such Conduit Purchaser of a participating interest to a Liquidity Provider or
other Program Support Provider, such Conduit Purchaser shall remain responsible for the performance
of its obligations hereunder. The Seller agrees that each Liquidity Provider and Program Support
Provider of any Conduit Purchaser hereunder shall be entitled to the benefits of Section
1.7.

     (e) Other Assignment by Conduit Purchasers. Each party hereto agrees and consents (i)
to any Conduit Purchaser’s assignment, participation, grant of security interests in or other
transfers of any portion of, or any of its beneficial interest in, the Purchased Interest (or
portion thereof), including without limitation to any collateral agent in connection with its
commercial paper program and (ii) to the complete assignment by any Conduit Purchaser of all of its
rights and obligations hereunder to any other Person, and upon such assignment such Conduit
Purchaser shall be released from all obligations and duties, if any, hereunder; provided,
however, that such Conduit Purchaser may not, without the prior consent of its Related
Committed Purchasers, make any such transfer of its rights hereunder unless the assignee (i) is
principally engaged in the purchase of assets similar to the assets being purchased hereunder, (ii)
has as its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and (iii) issues
commercial paper or other Notes with credit ratings substantially comparable to the ratings of the
assigning Conduit Purchaser. Any assigning Conduit Purchaser shall deliver to any assignee a
Transfer Supplement with any changes as have been approved by the parties thereto, duly executed by
such Conduit Purchaser, assigning any portion of its interest in the Purchased Interest to its
assignee. Such Conduit Purchaser shall promptly (i) notify each of the other parties hereto of
such assignment and (ii) take all further action that the assignee reasonably requests in order to
evidence the assignee’s right, title and interest in such interest in the

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Purchased Interest and to enable the assignee to exercise or enforce any rights of such
Conduit Purchaser hereunder. Upon the assignment of any portion of its interest in the Purchased
Interest, the assignee shall have all of the rights hereunder with respect to such interest (except
that the Discount therefor shall thereafter accrue at the rate, determined with respect to the
assigning Conduit Purchaser unless the Seller, the related Purchaser Agent and the assignee shall
have agreed upon a different Discount).

     (f) Opinions of Counsel. If required by the Administrator or the applicable Purchaser
Agent or to maintain the ratings of any Conduit Purchaser, each Transfer Supplement must be
accompanied by an opinion of counsel of the assignee as to such matters as the Administrator or
such Purchaser Agent may reasonably request.

     Section 6.4 Costs, Expenses and Taxes. (a) By way of clarification, and not of
limitation, of Sections 1.7 or 3.1, the Seller shall pay to the Administrator, each
Purchaser Agent and/or any Purchaser on demand all costs and expenses in connection with (i) the
preparation, execution, delivery and administration (including amendments or waivers of any
provision) of this Agreement or the other Transaction Documents, (ii) the sale of the Purchased
Interest (or any portion thereof), (iii) the perfection (and continuation) of the Administrator’s
rights in the Receivables, Collections and other Pool Assets, (iv) the enforcement by the
Administrator, any Purchaser Agent or any member of any Purchaser Group of the obligations of the
Seller, the Servicer or the Originators under the Transaction Documents or of any Obligor under a
Receivable and (v) the maintenance by the Administrator of the Lock-Box Accounts (and any related
lock-box or post office box), including fees, costs and expenses of legal counsel for the
Administrator and the Purchaser Agents relating to any of the foregoing or to advising the
Administrator or any member of any Purchaser Group (including, any related Liquidity Provider or
any other related Program Support Provider) about its rights and remedies under any Transaction
Document or any other document, agreement or instrument related thereto and all costs and expenses
(including counsel fees and expenses) of the Administrator and any Purchaser Agent in connection
with the enforcement or administration of the Transaction Documents or any other document,
agreement or instrument related thereto. The Seller shall reimburse the Administrator and each
Purchaser Agent for the cost of such Person’s auditors (which may be employees of such Person)
auditing the books, records and procedures of the Seller or the Servicer. The Seller shall
reimburse each Conduit Purchaser for any amounts such Conduit Purchaser must pay to any related
Liquidity Provider or other related Program Support Provider pursuant to any Funding Agreement on
account of any Tax. The Seller shall reimburse each Conduit Purchaser on demand for all out of
pocket costs and expenses incurred by such Conduit Purchaser in connection with the Transaction
Documents or the transactions contemplated thereby.

     (a) In addition, the Seller shall pay on demand any and all stamp and other taxes and fees
payable in connection with the execution, delivery, filing and recording of this Agreement or the
other documents or agreements to be delivered hereunder, and agrees to save each Indemnified Party
and Affected Person harmless from and against any liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees.

     Section 6.5 No Proceedings; Limitation on Payments. (a) Each of the Seller, Cooper
Tire, the Servicer, the Administrator, the Purchaser Agents, the Purchasers, each assignee of the

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Purchased Interest or any interest therein, and each Person that enters into a commitment to
purchase the Purchased Interest or interests therein, hereby covenants and agrees that it will not
institute against, or join any other Person in instituting against, any Conduit Purchaser any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding
under any federal or state bankruptcy or similar law, for one year and one day after the latest
maturing Note issued by such Conduit Purchaser is paid in full. The provisions of this paragraph
shall survive any termination of this Agreement.

     (a) Notwithstanding any provisions contained in this Agreement to the contrary, no Conduit
Purchaser shall or shall be obligated to, pay any amount, if any, payable by it pursuant to this
Agreement or any other Transaction Document unless (i) such Conduit Purchaser has received funds
which may be used to make such payment and which funds are not required to repay the Notes when due
and (ii) after giving effect to such payment, either (x) such Conduit Purchaser could issue Notes
to refinance all outstanding Notes (assuming such outstanding Notes matured at such time) in
accordance with the program documents governing such Conduit Purchaser’s securitization program or
(y) all Notes are paid in full. Any amount which such Conduit Purchaser does not pay pursuant to
the operation of the preceding sentence shall not constitute a claim (as defined in §101 of the
Bankruptcy Code) against or company obligation of such Conduit Purchaser for any such insufficiency
unless and until such Conduit Purchaser satisfies the provisions of clauses (i) and
(ii) above. The provisions of this paragraph shall survive any termination of this
Agreement.

     Section 6.6 GOVERNING LAW AND JURISDICTION.

     (a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A
SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE
OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS PERMITTED
BY NEW YORK LAW.

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     Section 6.7 Confidentiality. Unless otherwise required by applicable law, each of the
Seller and the Servicer agrees to maintain the confidentiality of this Agreement and the other
Transaction Documents (and all drafts thereof) in communications with third parties and otherwise;
provided, that this Agreement may be disclosed (a) to third parties to the extent such
disclosure is made pursuant to a written agreement of confidentiality in form and substance
reasonably satisfactory to the Administrator and each Purchaser Agent, (b) to the Seller’s and
Servicer’s legal counsel and auditors if they agree to hold it confidential and (c) as may be
necessary or desirable for financial reports, reports required by state and federal securities laws
and by any other law. The Purchaser Agents and the Purchasers agree to maintain the
confidentiality of non-public financial and other business and proprietary information regarding
the Seller, the Servicer and the Originators; provided, that such information may be
disclosed (i) to third parties to the extent such disclosure is made pursuant to a written
agreement of confidentiality in form and substance reasonably satisfactory to the Servicer, (ii) to
legal counsel and auditors of the Purchasers, the Purchaser Agents or the Administrator if they
agree to hold it confidential, (iii) if applicable to the rating agencies rating the Notes of any
Conduit Purchaser, (iv) to any Program Support Provider or potential Program Support Provider (if
they agree to hold it confidential), (v) to any placement agency placing the Notes, (vi) to any
regulatory authorities having jurisdiction over the Administrator, the Purchaser Agents, any
Purchaser, any Program Support Provider or any Liquidity Provider, and (vii) with prompt notice to
the Servicer in advance if practicable and permitted by law, to others as otherwise required by
law.

     Section 6.8 Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which, when so executed, shall be deemed to be an original, and all of
which, when taken together, shall constitute one and the same agreement.

     Section 6.9 Survival of Termination. The provisions of Sections 1.7,
1.9, 1.10, 3.1, 3.2, 6.4, 6.5, 6.6,
6.7, 6.10 and 6.15 shall survive any termination of this Agreement.

     Section 6.10 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO WAIVES THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER
WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT
ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT
SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY
PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.

     Section 6.11 Sharing of Recoveries. Each Purchaser agrees that if it receives any
recovery, through set-off, judicial action or otherwise, on any amount payable or recoverable

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hereunder in a greater proportion than should have been received hereunder or otherwise
inconsistent with the provisions hereof, then the recipient of such recovery shall purchase for
cash an interest in amounts owing to the other Purchasers (as return of Capital or otherwise),
without representation or warranty except for the representation and warranty that such interest is
being sold by each such other Purchaser free and clear of any Adverse Claim created or granted by
such other Purchaser, in the amount necessary to create proportional participation by the Purchaser
in such recovery. If all or any portion of such amount is thereafter recovered from the recipient,
such purchase shall be rescinded and the purchase price restored to the extent of such recovery,
but without interest.

     Section 6.12 Right of Setoff. Each Purchaser is hereby authorized (in addition to any
other rights it may have) to setoff, appropriate and apply (without presentment, demand, protest or
other notice which are hereby expressly waived) any deposits and any other indebtedness held or
owing by such Purchaser (including by any branches or agencies of such Purchaser) to, or for the
account of, the Seller against amounts owing by the Seller hereunder (even if contingent or
unmatured).

     Section 6.13 Entire Agreement. This Agreement and the other Transaction Documents
embody the entire agreement and understanding between the parties hereto, and supersede all prior
or contemporaneous agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof.

     Section 6.14 Headings. The captions and headings of this Agreement and any Exhibit,
Schedule or Annex hereto are for convenience of reference only and shall not affect the
interpretation hereof or thereof.

     Section 6.15 Purchaser Groups’ Liabilities. The obligations of each Purchaser Agent
and each Purchaser under the Transaction Documents are solely the corporate obligations of such
Person. Except with respect to any claim arising out of the willful misconduct or gross negligence
of the Administrator, any Purchaser Agent or any Purchaser, no claim may be made by the Seller or
the Servicer or any other Person against the Administrator, any Purchaser Agent or any Purchaser or
their respective Affiliates, directors, officers, employees, attorneys or agents for any special,
indirect, consequential or punitive damages in respect of any claim for breach of contract or any
other theory of liability arising out of or related to the transactions contemplated by this
Agreement or any other Transaction Document, or any act, omission or event occurring in connection
therewith; and each of Seller and Servicer hereby waives, releases, and agrees not to sue upon any
claim for any such damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

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

	 	 	 
	COOPER RECEIVABLES LLC, as Seller
	 
	 	 
	By:

	 	/s/ Charles F. Nagy
	 

	 	 
	Name: Charles F. Nagy
	Title: Assistant Treasurer
	 
	 	 
	By:

	 	/s/ Stephen O. Schroeder
	 

	 	 
	Name: Stephen O. Schroeder
	Title: President and Treasurer

	 	 	 
	Address:

	 	Cooper Receivables LLC
	 

	 	701 Lima Avenue
	 

	 	Findlay, OH 45840
	 

	 	Attention: C. F. Nagy, Manager
	 

	 	Telephone: (419) 424-4214
	 

	 	Facsimile: (419) 424-4212

	 	 	 
	COOPER TIRE & RUBBER COMPANY, as Servicer
	 
	 	 
	By:

	 	/s/ Philip G. Weaver
	 

	 	 
	Name: Philip G. Weaver
	Title: Vice President & Chief Financial Officer
	 
	 	 
	By:

	 	/s/ Stephen O. Schroeder
	 

	 	 
	Name: Stephen O. Schroeder
	Title: President and Treasurer

	 	 	 
	Address:

	 	Cooper Tire & Rubber Company
	 

	 	701 Lima Avenue
	 

	 	Findlay, OH 45840
	 
	 	 
	 

	 	Attention: Philip G. Weaver,
	 

	 	               Vice President and Chief Financial
	 

	 	               Officer
	 

	 	Telephone: (419) 424-4320

	 

	 	Facsimile: (419) 424-4212

 

					
	 
	 	S-1
	 	Receivables Purchase Agreement
	 
	 	 	 	(Cooper Tire)

 

 

	 
	Copy to:

	 

	James E. Kline, General Counsel

	Cooper Tire & Rubber Company

	701 Lima Avenue

	Findlay, OH 45840

	 

	Telephone: (419) 427-4757

	Facsimile: (419) 831-6876

 

					
	 
	 	 
	 	Receivables Purchase Agreement
	 
	 	 	 	(Cooper Tire)

 

 

	 	 	 
	THE PURCHASER GROUPS:
	 
	 	 
	PNC BANK, NATIONAL ASSOCIATION, as Purchaser Agent for the
	Market Street Purchaser Group
	 
	 	 
	By:

	 	/s/ John T. Smathers
	 

	 	 
	Name:

	 	John T. Smathers
	Title:

	 	Vice President

	 	 	 
	Address:

	 	PNC Bank, National Association
	 

	 	One PNC P1aza
	 

	 	249 Fifth Avenue
	 

	 	Pittsburgh, Pennsylvania 15222-2707
	 
	 	 
	 

	 	Attention: John Smathers
	 

	 	Telephone: (412) 762-6440
	 

	 	Facsimile: (412)762-9184

 

					
	 
	 	S-2
	 	Receivables Purchase Agreement
	 
	 	 	 	(Cooper Tire)

 

 

	 	 	 
	MARKET STREET FUNDING LLC,

as Related Committed Purchaser
	 
	 	 
	By:

	 	/s/ Doris J. Hearn
	 

	 	 
	Name: Doris J. Hearn
	Title: Vice President

	 	 	 
	Address:

	 	c/o AMACAR Group, L.L.C.
	 

	 	6525 Morrison Blvd., Suite 318
	 

	 	Charlotte, North Carolina 28211
	 
	 	 
	 

	 	Attention: Douglas K. Johnson
	 

	 	Telephone: (704) 365-0569
	 

	 	Facsimile: (704) 365-1362
	 
	 	 
	     Commitment: $175,000,000

	 	 	 
	MARKET STREET FUNDING LLC,
	as Conduit Purchaser
	 
	 	 
	By:

	 	/s/ Doris J. Hearn
	 

	 	 
	Name: Doris J. Hearn
	Title: Vice President

	 	 	 
	Address:

	 	c/o AMACAR Group, L.L.C.
	 

	 	6525 Morrison Blvd., Suite 318
	 

	 	Charlotte, North Carolina 28211
	 
	 	 
	 

	 	Attention: Douglas K. Johnson
	 

	 	Telephone: (704) 365-0569
	 

	 	Facsimile: (704) 365-1362

 

					
	 
	 	S-3
	 	Receivables Purchase Agreement
	 
	 	 	 	(Cooper Tire)

 

 

	 	 	 
	PNC BANK, NATIONAL ASSOCIATION, as Administrator
	 
	 	 
	By:

	 	/s/ John T. Smathers
	 

	 	 
	Name: John T. Smathers
	Title: Vice President

	 	 	 
	Address:

	 	PNC Bank, National Association
	 

	 	One PNC P1aza
	 

	 	249 Fifth Avenue

Pittsburgh, Pennsylvania 15222-2707
	 
	 	 
	 

	 	Attention: John Smathers
	 

	 	Telephone: (412) 762-6440
	 

	 	Facsimile: (412) 762-9184

 

					
	 
	 	S-4
	 	Receivables Purchase Agreement
	 
	 	 	 	(Cooper Tire)

 

 

EXHIBIT I

DEFINITIONS

     As used in this Agreement (including its Exhibits, Schedules and Annexes), the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined). Unless otherwise indicated, all Section, Annex, Exhibit and
Schedule references in this Exhibit are to Sections of and Annexes, Exhibits and Schedules to this
Agreement.

     “Administrator” has the meaning set forth in the preamble to this Agreement.

     “Adverse Claim” means a lien, security interest or other charge or encumbrance, or any
other type of preferential arrangement; it being understood that any thereof in favor of
the Administrator (for the benefit of the Purchasers ) shall not constitute an Adverse Claim.

     “Affected Person” has the meaning set forth in Section 1.7 of this Agreement.

     “Affiliate” means, as to any Person: (a) any Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person, or (b) who is a
director or officer: (i) of such Person or (ii) of any Person described in clause (a),
except that, in the case of each Conduit Purchaser, Affiliate shall mean the holder of its capital
stock or membership interest, as the case may be. For purposes of this definition, control of a
Person shall mean the power, direct or indirect: (x) to vote 25% or more of the securities having
ordinary voting power for the election of directors of such Person, or (y) to direct or cause the
direction of the management and policies of such Person, in either case whether by ownership of
securities, contract, proxy or otherwise.

     “Aggregate Capital” means the amount paid to the Seller in respect of the Purchased
Interest or portion thereof by each Purchaser pursuant to this Agreement, as reduced from time to
time by Collections distributed and applied on account of such Aggregate Capital pursuant to
Section 1.4(d) of this Agreement; provided, that if such Aggregate Capital shall
have been reduced by any distribution, and thereafter all or a portion of such distribution is
rescinded or must otherwise be returned for any reason, such Aggregate Capital shall be increased
by the amount of such rescinded or returned distribution as though it had not been made.

     “Aggregate Discount” at any time, means the sum of the aggregate for each Purchaser of
the accrued and unpaid Discount with respect to each such Purchaser’s Capital at such time.

     “Agreement” has the meaning set forth in the preamble hereto.

     “Alternate Rate” for any Yield Period for any Capital (or portion thereof) funded by
any Purchaser other than through the issuance of Notes, means an interest rate per annum equal to:
(a) 2.0% per annum above the Euro-Rate for such Yield Period, or, in the sole discretion of the
applicable Purchaser Agent (b) the Base Rate for such Yield Period; provided,
however, that the “Alternate Rate” for any day while a Termination Event or an Unmatured
Termination Event exists shall be an interest rate equal to 2.0% per annum above the Base Rate in
effect on such day.

I-1

 

     “Assumption Agreement” means an agreement substantially in the form set forth in
Annex C to this Agreement.

     “Attorney Costs” means and includes all reasonable fees and disbursements of any law
firm or other external counsel, the reasonable allocated cost of internal legal services and all
reasonable disbursements of internal counsel.

     “Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C. §
101, et seq.), as amended from time to time.

     “Base Rate” means, with respect to any Purchaser, for any day, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate shall be at all times equal to
the higher of:

     (a) the rate of interest in effect for such day as publicly announced from time to time
by the applicable Purchaser Agent (or applicable Related Committed Purchaser) as its
“reference rate”. Such “reference rate” is set by the applicable Purchaser Agent based upon
various factors, including the applicable Purchaser Agent’s costs and desired return,
general economic conditions and other factors, and is used as a reference point for pricing
some loans, which may be priced at, above or below such announced rate, and

     (b) 0.50% per annum above the latest Federal Funds Rate.

     “BBA” means the British Bankers’ Association.

     “Benefit Plan” means any employee benefit pension plan as defined in Section 3(2) of
ERISA in respect of which the Seller, any Originator, Cooper Tire or any ERISA Affiliate is, or at
any time during the immediately preceding six years was, an “employer” as defined in Section 3(5)
of ERISA.

     “Business Day” means any day (other than a Saturday or Sunday) on which: (a) banks are
not authorized or required to close in Pittsburgh, Pennsylvania, or New York City, New York, and
(b) if this definition of “Business Day” is utilized in connection with the Euro-Rate, dealings are
carried out in the London interbank market.

     “CAD Lock-Box Account” means that certain account maintained at JPMorgan Chase Bank,
N.A. (Canada), which shall be the subject of a Lock-Box Agreement within thirty (30) days after the
Closing Date.

     “Canadian Currency Volatility Reserve” means the value at risk percentage calculated
by PNC Bank, National Association from time to time, and which shall initially be 6.54%, multiplied
by an amount equal to the U.S. Dollar Equivalent of the aggregate Outstanding Balance of
Receivables payable in Canadian Dollars.

     “Canadian Dollars” means the lawful currency of Canada.

     “Capital” means with respect to any Purchaser the amount paid to the Seller by such
Purchaser pursuant to this Agreement, as reduced from time to time by Collections distributed

I-2

 

and applied on account of such Capital pursuant to Section 1.4(d) of this Agreement;
provided, that if such Capital shall have been reduced by any distribution and thereafter
all or a portion of such distribution is rescinded or must otherwise be returned for any reason,
such Capital shall be increased by the amount of such rescinded or returned distribution as though
it had not been made.

     “Change in Control” means that Cooper Tire ceases to own, directly or indirectly, (a)
100% of the membership interests of the Seller free and clear of all Adverse Claims or (b) 100% of
the voting stock of any other Originator free and clear of all Adverse Claims.

     “Closing Date” means August 30, 2006.

     “Collections” means, with respect to any Pool Receivable: (a) all funds that are
received by any Originator, Cooper Tire, the Seller or the Servicer in payment of any amounts owed
in respect of such Receivable (including purchase price, finance charges, interest and all other
charges), or applied to amounts owed in respect of such Receivable (including insurance payments
and net proceeds of the sale or other disposition of repossessed goods or other collateral or
property of the related Obligor or any other Person directly or indirectly liable for the payment
of such Pool Receivable and available to be applied thereon), (b) all Deemed Collections and (c)
all other proceeds of such Pool Receivable.

     “Commitment” means, with respect to each Related Committed Purchaser, the maximum
amount which such Purchaser is obligated to pay hereunder on account of any Purchase, as set forth
below its signature to this Agreement or in the Assumption Agreement or other agreement pursuant to
which it became a Purchaser, as such amount may be modified in connection with any subsequent
assignment pursuant to Section 6.3(c) or in connection with a change in the Purchase Limit
pursuant to Section 1.1(b).

     “Commitment Percentage” means, for each Related Committed Purchaser in a Purchaser
Group, such Related Committed Purchaser’s Commitment divided by the total of all Commitments of all
Related Committed Purchasers in such Purchaser Group.

     “Company Note” has the meaning set forth in Section 3.1 of the Sale Agreement.

     “Concentration Percentage” means: (a) for any Group A Obligor, 20.0%, (b) for any
Group B Obligor, 20.0%, (c) for any Group C Obligor, 10.0% and (d) for the Group D Obligor with the
largest Outstanding Balance of Receivables, 17.5% and for any other Group D Obligor, 5.0%;
provided, however, that the Administrator (with the prior written consent of the
Majority Purchaser Agents ), may (to the extent the Rating Agency Condition has been satisfied with
respect thereto if required by the securitization program of any Conduit Purchaser) approve higher
Concentration Percentages for selected Obligors; provided that the calculation set forth in this
definition shall not, during the Oliver Exclusion Period, include any amounts in respect of Oliver
Receivables.

     “Concentration Reserve” means at any time, the product of (a) the Aggregate Capital
plus, and (b)(i) the Concentration Reserve Percentage divided by (ii) 1 minus the Concentration
Reserve Percentage.

I-3

 

     “Concentration Reserve Percentage” means, at any time, the (a) largest of the
following (i) the sum of the four (4) largest Group D Obligor Receivables balances (up to the
Concentration Percentage for each Obligor), (ii) the sum of the two (2) largest Group C Obligor
Receivables balances (up to the Concentration Percentage for each Obligor), (iii) the largest Group
B Obligor Receivables balance (up to the Concentration Percentage for each Obligor), and (iv) the
largest Group A Obligor Receivables balance (up to the Concentration Percentage for such Obligor),
divided by (b) the sum of the outstanding balances of all Eligible Receivables.

     “Conduit Purchasers” means each commercial paper conduit that is a party to this
Agreement, as a purchaser, or that becomes a party to this Agreement, as a purchaser pursuant to an
Assumption Agreement or otherwise.

     “Contract” means, with respect to any Receivable, any and all contracts, instruments,
agreements, leases, invoices, notes or other writings pursuant to which such Receivable arises or
that evidence such Receivable or under which an Obligor becomes or is obligated to make payment in
respect of such Receivable.

     “Cooper Tire” has the meaning set forth in the preamble to this Agreement.

     “CP Rate” means, for any Conduit Purchaser and for any Yield Period for any Portion of
Capital (a) the per annum rate equivalent to the weighted average cost (as
determined by the applicable Purchaser Agent and which shall include commissions of placement
agents and dealers, incremental carrying costs incurred with respect to Notes of such Person
maturing on dates other than those on which corresponding funds are received by such Conduit
Purchaser, other borrowings by such Conduit Purchaser (other than under any Program Support
Agreement) and any other costs associated with the issuance of Notes) of or related to the issuance
of Notes that are allocated, in whole or in part, by the applicable Purchaser Agent to fund or
maintain such Portion of Capital (and which may be also allocated in part to the funding of other
assets of such Conduit Purchaser); provided, however, that if any component of such
rate is a discount rate, in calculating the “CP Rate” for such Portion of Capital for such
Yield Period, the applicable Purchaser Agent shall for such component use the rate resulting from
converting such discount rate to an interest bearing equivalent rate per annum;
provided, further, that notwithstanding anything in this Agreement or the other
Transaction Documents to the contrary, the Seller agrees that any amounts payable to the Purchasers
in respect of Discount for any Yield Period with respect to any Portion of Capital funded by such
Purchaser at the CP Rate shall include an amount equal to the portion of the face amount of the
outstanding Notes issued to fund or maintain such Portion of Capital that corresponds to the
portion of the proceeds of such Notes that was used to pay the interest component of maturing Notes
issued to fund or maintain such Portion of Capital, to the extent that such Purchaser had not
received payments of interest in respect of such interest component prior to the maturity date of
such maturing Notes (for purposes of the foregoing, the “interest component” of Notes equals the
excess of the face amount thereof over the net proceeds received by such Purchaser from the
issuance of Notes, except that if such Notes are issued on an interest-bearing basis its “interest
component” will equal the amount of interest accruing on such Notes through maturity) or (b) any
other rate designated as the “CP Rate” for such Conduit Purchaser in an Assumption Agreement or
Transfer Supplement pursuant to which such Person becomes a party as a Conduit Purchaser to

I-4

 

this Agreement, or any other writing or agreement provided by such Conduit Purchaser to the
Seller, the Servicer and the applicable Purchaser Agent from time to time. The “CP Rate” for any
day while a Termination Event or an Unmatured Termination Event exists shall be an interest rate
equal to 2.0% per annum above the Base Rate as in effect on such day.

     “Credit and Collection Policy” means, as the context may require, those receivables
credit and collection policies and practices of each Originator and of Cooper Tire in effect on the
date of this Agreement and described in Schedule I to this Agreement, as modified in
compliance with this Agreement.

     “Cut-off Date” has the meaning set forth in Section 1.1(a) the Sale Agreement.

     “Days’ Sales Outstanding” means, for any calendar month, an amount computed as of the
last day of such calendar month equal to: (a) the average of the Outstanding Balance of all Pool
Receivables as of the last day of each of the three most recent calendar months ended on the last
day of such calendar month divided by (b)(i) the aggregate credit sales made by the Originators
during the three calendar months ended on the last day of such calendar month divided by (ii) 90;
provided that the calculation set forth in this definition shall not, during the Oliver Exclusion
Period, include any amounts in respect of Oliver Receivables.

     “Debt” means: (a) indebtedness for borrowed money, (b) obligations evidenced by bonds,
debentures, notes or other similar instruments, (c) obligations to pay the deferred purchase price
of property or services, (d) obligations as lessee under leases that shall have been or should be,
in accordance with generally accepted accounting principles, recorded as capital leases, and (e)
obligations under direct or indirect guaranties in respect of, and obligations (contingent or
otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in
respect of, indebtedness or obligations of others of the kinds referred to in clauses (a)
through (d).

     “Declining Conduit Purchaser” has the meaning set forth in Section 1.4(b)(ii)
of this Agreement.

     “Declining Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Deemed Collections” has the meaning set forth in Section 1.4(e)(ii) of this
Agreement.

     “Default Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100 of 1%) computed as of the last day of each calendar month by dividing: (i) the aggregate
Outstanding Balance of all Pool Receivables that became Defaulted Receivables during such month
(other than Receivables that became Defaulted Receivables as a result of an Event of Bankruptcy
with respect to the Obligor thereof during such month) by (ii) the sum of (a) 75% of the aggregate
credit sales made by all the Originators during the calendar month that is seven months before such
month and (b) 25% of the aggregate credit sales made by all the Originators during the calendar
month that is nine months before such month; provided that the calculation set forth in this
definition shall not, during the Oliver Exclusion Period, include any amounts in respect of Oliver
Receivables.

     “Defaulted Receivable” means a Receivable:

I-5

 

     (a) as to which any payment, or part thereof, remains unpaid for more than 60 days from
the original due date for such payment, or

     (b) without duplication (i) as to which an Event of Bankruptcy shall have occurred with
respect to the Obligor thereof or any other Person obligated thereon or owning any Related
Security with respect thereto, or (ii) that has been written off the Seller’s books as
uncollectible.

     “Delinquency Ratio” means the ratio (expressed as a percentage and rounded to the
nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each
calendar month by dividing: (a) the aggregate Outstanding Balance of all Pool Receivables that were
Delinquent Receivables on such day by (b) the aggregate Outstanding Balance of all Pool Receivables
on such day; provided that the calculation set forth in this definition shall not, during the
Oliver Exclusion Period, include any amounts in respect of Oliver Receivables.

     “Delinquent Receivable” means a Receivable as to which any payment, or part thereof,
remains unpaid for more than 60 days from the original due date for such payment.

     “Determination Date” means, with respect to any calendar month, the last Business Day
of such calendar month.

     “Dilution Horizon” means, for any calendar month, the ratio (expressed as a percentage
and rounded to the nearest 1/100th of 1%) computed as of the last day of such calendar month of:
(a) the aggregate credit sales made by all the Originators during the two most recent calendar
months, to (b) the Net Receivables Pool Balance at the last day of such calendar month; provided
that the calculation set forth in this definition shall not, during the Oliver Exclusion Period,
include any amounts in respect of Oliver Receivables.

     “Dilution Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100th of 1%, with 5/1000th of 1% rounded upward), computed as of the last day of each calendar
month by dividing: (a) the aggregate amount of payments made or owed by the Seller pursuant to
Section 1.4(e)(i) of this Agreement (other than amounts related to the Specifically
Reserved Dilution Amount) during such calendar month by (b) the aggregate credit sales made by all
the Originators during the calendar month that is two months prior to such calendar month; provided
that the calculation set forth in this definition shall not, during the Oliver Exclusion Period,
include any amounts in respect of Oliver Receivables.

     “Dilution Reserve” means, on any day, an amount equal to: (a) the Aggregate Capital at
the close of business of the Servicer on such day multiplied by (b) (i) the
Dilution Reserve Percentage on such day, divided by (ii) 100% minus the Dilution Reserve
Percentage on such day.

     “Dilution Reserve Percentage” means on any date, the greater of: (a) the Minimum
Dilution Reserve Percentage and (b) the product of (i) the Dilution Horizon multiplied by (ii) the
sum of (x) 2 times the average of the Dilution Ratios for the twelve most recent calendar months
and (y) the Dilution Spike Factor.

I-6

 

     “Dilution Spike Factor” means, for any calendar month, the product of (a) the positive
difference, if any, between: (i) the highest Dilution Ratio for any calendar month during the
twelve most recent calendar months and (ii) the arithmetic average of the Dilution Ratios for such
twelve months and (b) (i) the highest Dilution Ratio for any calendar month during the twelve most
recent calendar months, divided by (ii) the arithmetic average of the Dilution Ratios for such
twelve months.

     “Discount” means with respect to any Purchaser:

     (a) for any Portion of Capital for any Yield Period with respect to any Purchaser to
the extent such Portion of Capital will be funded by such Purchaser during such Yield Period
through the issuance of Notes:

CPR x C x ED/360 + YPF

     (b) for any Portion of Capital for any Yield Period with respect to any Purchaser to
the extent such Portion of Capital will not be funded by such Purchaser during such Yield
Period through the issuance of Notes:

AR x C x ED/Year + YPF

     where:

	 	 	 	 	 	 	 
	 

	 	AR
	 	=
	 	the Alternate Rate for such Portion of Capital for such Yield
Period with respect to such Purchaser,
	 
	 	 	 	 	 	 
	 

	 	C
	 	=
	 	the Capital with respect to such Portion of Capital during
such Yield Period with respect to such Purchaser,
	 
	 	 	 	 	 	 
	 

	 	CPR
	 	=
	 	the CP Rate for the Portion of Capital for such Yield Period
with respect to such Purchaser,
	 
	 	 	 	 	 	 
	 

	 	ED
	 	=
	 	the actual number of days during such Yield Period,
	 
	 	 	 	 	 	 
	 

	 	Year
	 	=
	 	if such Portion of Capital is funded based upon: (i) the
Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366 days, as applicable,
and
	 
	 	 	 	 	 	 
	 

	 	YPF
	 	=
	 	the Yield Protection Fee, if any, for the Portion of Capital
for such Yield Period with respect to such Purchaser;

provided, that no provision of this Agreement shall require the payment or permit the
collection of Discount in excess of the maximum permitted by applicable law; and provided
further, that Discount for any Portion of Capital shall not be considered paid by any
distribution to the extent that at any time all or a portion of such distribution is rescinded or
must otherwise be returned for any reason.

I-7

 

     “Eligible Foreign Obligor” means an Obligor which is a resident of any country (other
than the United States of America) that has a short-term foreign currency rating (or, if such
country does not have such a short-term foreign currency rating, a long-term foreign currency
rating) of at least “A-1” (or “A”) by Standard & Poor’s and “P-1” (or “A2”) by Moody’s.

     “Eligible Receivable” means, at any time, a Pool Receivable:

     (a) the Obligor of which is (i) a United States resident, a Canadian resident or an
Eligible Foreign Obligor ; provided that with respect to any Receivable the Obligor of which
is a Canadian resident or an Eligible Foreign Obligor, the Seller shall have taken all
actions, at its own expense, and shall have delivered (or caused to be delivered) to the
Administrator all further instruments, opinions and documents, that may be necessary or
desirable in the sole determination of the Administrator, as the Administrator may
reasonably request, to perfect, protect or more fully evidence such Receivable and the
security interest granted therein and in the Related Security and Collections with respect
thereto, or to enable the Administrator, any Purchaser Agent or any Purchaser to exercise
and enforce their respective rights and remedies under this Agreement, (ii) not subject to
any action of the type described in paragraph (f) of Exhibit V to this
Agreement and (iii) not an Affiliate of Cooper Tire or any Affiliate of Cooper Tire.

     (b) that is denominated and payable either (i) in U.S. dollars and the Obligor with
respect to which has been instructed on or prior to the Closing Date to remit Collections in
respect thereof to a Lock-Box Account in the United States of America or (ii) in Canadian
Dollars and the Obligor with respect to which has been instructed on or prior to the date
that is thirty (30) days after the Closing Date to remit Collections in respect thereof to
the CAD Lock-Box Account, as the case may be.

     (c) that does not have a stated maturity which is more than 180 days after the original
invoice date of such Receivable,

     (d) that arises under a duly authorized Contract for the sale and delivery of goods and
services in the ordinary course of an Originator’s business,

     (e) that arises under a duly authorized Contract that is in full force and effect and
that is a legal, valid and binding obligation of the related Obligor, enforceable against
such Obligor in accordance with its terms,

     (f) that conforms in all material respects with all applicable laws, rulings and
regulations in effect,

     (g) that is not the subject of any asserted dispute, offset, hold back, defense,
Adverse Claim or other claim,

     (h) that satisfies all applicable requirements of the applicable Credit and Collection
Policy,

I-8

 

     (i) that has not been modified, waived or restructured since its creation, except as
permitted pursuant to Section 4.2 of this Agreement,

     (j) in which the Seller owns good and marketable title, free and clear of any Adverse
Claims, and that is freely assignable by the Seller (including without any consent of the
related Obligor),

     (k) for which the Administrator (for the benefit of each Purchaser) shall have a valid
and enforceable undivided percentage ownership or security interest, to the extent of the
Purchased Interest, and a valid and enforceable first priority perfected security interest
therein and in the Related Security and Collections with respect thereto, in each case free
and clear of any Adverse Claim,

     (l) that constitutes an account as defined in the UCC, and that is not evidenced by
instruments or chattel paper,

     (m) that is not a Defaulted Receivable or a Delinquent Receivable,

     (n) for which none of the Originator thereof, the Seller and the Servicer has
established any offset arrangements with the related Obligor,

     (o) for which Defaulted Receivables of the related Obligor do not exceed 35% of the
Outstanding Balance of all such Obligor’s Receivables,

     (p) that represents amounts earned and payable by the Obligor that are not subject to
the performance of additional services by the Originator thereof, and

     (q) solely during the Oliver Exclusion Period, such Receivable is not an Oliver
Receivable.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time. References to sections of ERISA also refer
to any successor sections.

     “ERISA Affiliate” means: (a) any corporation that is a member of the same controlled
group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as the
Seller, any Originator or Cooper Tire, (b) a trade or business (whether or not incorporated) under
common control (within the meaning of Section 414(c) of the Internal Revenue Code) with the Seller,
any Originator or Cooper Tire, or (c) a member of the same affiliated service group (within the
meaning of Section 414(m) of the Internal Revenue Code) as the Seller, any Originator, any
corporation described in clause (a) or any trade or business described in clause
(b).

     “Euro-Rate” means with respect to any Yield Period, the interest rate per annum
determined by the applicable Purchaser Agent by dividing (the resulting quotient rounded upwards,
if necessary, to the nearest 1/100th of 1% per annum) (i) the rate of interest determined by such
Purchaser Agent in accordance with its usual procedures (which determination shall be

I-9

 

conclusive absent manifest error) to be the average of the London interbank market offered
rates for U.S. dollars quoted by the BBA as set forth on Dow Jones Markets Service (formerly known
as Telerate) (or appropriate successor or, if BBA or its successor ceases to provide display page
3750 (or such other display page on the Dow Jones Markets Service system as may replace display
page 3750) at or about 11:00 a.m. (London time) on the Business Day which is two (2) Business Days
prior to the first day of such Yield Period for an amount comparable to the Portion of Capital to
be funded at the Yield Rate and based upon the Euro-Rate during such Yield Period by (ii) a number
equal to 1.00 minus the Euro-Rate Reserve Percentage. The Euro-Rate may also be expressed by the
following formula:

	 	 	 	 	 
	 

	 		 	 
	
Euro-Rate =
	 	Average of London interbank offered rates quoted by BBA
as shown on Dow Jones Markets Service display page 3750
or appropriate successor	 	 
	 	

1.00 — Euro-Rate Reserve Percentage	 	 

where “Euro-Rate Reserve Percentage” means, the maximum effective percentage in effect
on such day as prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the reserve requirements (including without limitation, supplemental,
marginal, and emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”). The Euro-Rate shall be adjusted with respect to any
Portion of Capital funded at the Yield Rate and based upon the Euro-Rate that is outstanding on the
effective date of any change in the Euro-Rate Reserve Percentage as of such effective date. The
applicable Purchaser Agent shall give prompt notice to the Seller of the Euro-Rate as determined or
adjusted in accordance herewith (which determination shall be conclusive absent manifest error).

     “Event of Bankruptcy” means (a) any case, action or proceeding before any court or
other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors or (b) any general assignment for the
benefit of creditors of a Person or any composition, marshalling of assets for creditors of a
Person, or other similar arrangement in respect of its creditors generally or any substantial
portion of its creditors; in each of cases (a) and (b) undertaken under U.S. Federal, state or
foreign law, including the Bankruptcy Code.

     “Excess Concentration” means the sum of the amounts by which the Outstanding Balance
of Eligible Receivables of each Obligor then in the Receivables Pool exceeds an amount equal to the
sum of: (i) an amount equal to (a) the applicable Concentration Percentage for such Obligor
multiplied by (b) the Outstanding Balance of all Eligible Receivables then in the Receivables Pool,
plus (ii) the amount by which the aggregate Outstanding Balance of all Eligible Receivables then in
the Receivables Pool that are denominated in Canadian Dollars exceeds 10.0% of the aggregate
Outstanding Balance of all Eligible Receivables then in the Receivables Pool, plus (iii) the amount
by which the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool
the Obligor of which is an Eligible Foreign Obligor exceeds 5.0% of the aggregate Outstanding
Balance of all Eligible Receivables then in the Receivables Pool, plus (iv) the amount by which the
aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool that have a
stated maturity which is more than

I-10

 

120 days but less than 181 days after the original invoice date of such Receivable exceeds
25.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the Receivables
Pool, plus (v) the amount by which the aggregate Outstanding Balance of all Eligible Receivables
then in the Receivables Pool the Obligor of which is a governmental entity exceeds 2.0% of the
aggregate Outstanding Balance of all Eligible Receivables then in the Receivables Pool.

     “Exiting Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Exiting Purchaser” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Facility Termination Date” means the earliest to occur of: (a) with respect to each
Purchaser August 28, 2009, subject to any extension pursuant to Section 1.12 of this Agreement (it
being understood that if any such Purchaser does not extend its Commitment hereunder then the
Purchase Limit shall be reduced ratably with respect to the Purchasers in each Purchaser Group by
an amount equal to the Commitment of such Exiting Purchaser and the Commitment Percentages and
Group Commitments of the Purchasers within each Purchaser Group shall be appropriately adjusted),
(b) the date determined pursuant to Section 2.2 of this Agreement, (c) the date the Purchase Limit
reduces to zero pursuant to Section 1.1(b) of this Agreement, (d) with respect to each Purchaser
Group, the date that the commitments of all of the Liquidity Providers terminate under the related
Liquidity Agreement (it being understood and agreed that the date set forth in the related
Liquidity Agreement as the schedule “purchase termination date” (or other similar term) shall not
be amended by the applicable Purchasers and the related Liquidity Providers to be a date earlier
than August 28, 2009), (e) with respect to each Purchaser Group, the date that the commitment, of
all of the Related Committed Purchasers of such Purchaser Group terminate pursuant to Section 1.12,
(f) the date which is 60 days after the date on which the Administrator and each Purchaser Agent
has received written notice from the Seller of its election to terminate the Purchase Facility and
(g) the Seller shall fail to cause the amendment or modification of any Transaction Document as
reasonably requested by Moody’s or Standard & Poor’s, and such failure shall continue for 30 days
after such amendment or modification is initially requested.

     “Federal Funds Rate” means, for any day, the per annum rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication, published by the Federal
Reserve Board (including any such successor, “H.15(519)”) for such day opposite the caption
“Federal Funds (Effective).” If on any relevant day such rate is not yet published in H.15(519),
the rate for such day will be the rate set forth in the daily statistical release designated as the
Composite 3:30 p.m. Quotations for U.S. Government Securities, or any successor publication,
published by the Federal Reserve Bank of New York (including any such successor, the “Composite
3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective Rate.” If on any
relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30
p.m. Quotations, the rate for such day will be the arithmetic mean as determined by the
Administrator of the rates for the last transaction in overnight Federal funds arranged before 9:00
a.m. (New York City Time) on that day by each of three leading brokers of Federal funds
transactions in New York City selected by the Administrator.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any entity succeeding to any of its principal functions.

I-11

 

     “Fees” means the fees payable by the Seller to each member of each Purchaser Group
pursuant to the applicable Purchaser Group Fee Letter.

     “GAAP” means the generally accepted accounting principles and practices in the United
States, consistently applied.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government, including any court, and any Person owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

     “Group A Obligor” means any Obligor with a short-term rating of at least: (a) “A-1” by
Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a
rating of “A+” or better by Standard & Poor’s on its long-term senior unsecured and
uncredit-enhanced debt securities, and (b) “P-1” by Moody’s, or if such Obligor does not
have a short-term rating from Moody’s, “A1” or better by Moody’s on its long-term senior unsecured
and uncredit-enhanced debt securities.

     “Group B Obligor” means an Obligor, not a Group A Obligor, with a short-term rating of
at least: (a) “A-2” by Standard & Poor’s, or if such Obligor does not have a short-term rating from
Standard & Poor’s, a rating of “BBB+” to “A” by Standard & Poor’s on its long-term senior unsecured
and uncredit-enhanced debt securities, and (b) “P-2” by Moody’s, or if such Obligor does
not have a short-term rating from Moody’s, “Baa1” to “A2” by Moody’s on its long-term senior
unsecured and uncredit-enhanced debt securities.

     “Group C Obligor” means an Obligor, not a Group A Obligor or Group B Obligor, with a
short-term rating of at least: (a) “A-3” by Standard & Poor’s, or if such Obligor does not have a
short-term rating from Standard & Poor’s, a rating of “BBB-” to “BBB” by Standard & Poor’s on its
long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-3” by Moody’s,
or if such Obligor does not have a short-term rating from Moody’s, “Baa3” to “Baa2” by Moody’s on
its long-term senior unsecured and uncredit-enhanced debt securities.

     “Group D Obligor” means any Obligor that is not a Group A Obligor, Group B Obligor or
Group C Obligor.

     “Group Commitment” means with respect to any Purchaser Group the aggregate of the
Commitments of each Purchaser within such Purchaser Group.

     “Group Capital” means with respect to any Purchaser Group, an amount equal to the
aggregate of all Capital of the Purchasers within such Purchaser Group.

     “Indemnified Amounts” has the meaning set forth in Section 3.1 of this
Agreement.

     “Indemnified Party” has the meaning set forth in Section 3.1 of this
Agreement.

     “Independent Director” has the meaning set forth in paragraph 3(c) of
Exhibit IV to this Agreement.

I-12

 

     “Information Package” means each report, in substantially the form of Annex A
to this Agreement, furnished by or on behalf of the Servicer to the Administrator and each
Purchaser Agent pursuant to this Agreement.

     “Insolvency Proceeding” means: (a) any case, action or proceeding before any court or
other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors, composition, marshaling of assets for creditors, or other similar arrangement
in respect of its creditors generally or any substantial portion of its creditors, in each case
undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and any successor statute of similar import, together with the regulations thereunder, in
each case as in effect from time to time. References to sections of the Internal Revenue Code also
refer to any successor sections.

     “Liquidity Agent” means each of the banks acting as agent for the various Liquidity
Providers under each Liquidity Agreement.

     “Liquidity Agreement” means any agreement entered into in connection with this
Agreement pursuant to which a Liquidity Provider agrees to make purchases or advances to, or
purchase assets from, any Conduit Purchaser in order to provide liquidity for such Conduit
Purchaser’s Purchases.

     “Liquidity Provider” means each bank or other financial institution that provides
liquidity support to any Conduit Purchaser pursuant to the terms of a Liquidity Agreement.

     “Lock-Box Account” means each account listed on Schedule II to this Agreement
and maintained at a bank or other financial institution acting as a Lock-Box Bank pursuant to a
Lock-Box Agreement for the purpose of receiving Collections and the CAD Lock-Box Account, which
shall be the subject of a Lock-Box Agreement within thirty (30) days after the Closing Date.

     “Lock-Box Agreement” means an agreement, among the Seller, the Servicer, a Lock-Box
Bank and the Administrator, governing the terms of the related Lock-Box Accounts, in each case
acceptable to the Administrator.

     “Lock-Box Bank” means any of the banks or other financial institutions holding one or
more Lock-Box Accounts.

     “Loss Reserve” means, on any date, an amount equal to (a) the Aggregate Capital at the
close of business of the Servicer on such date multiplied by (b)(i) the Loss Reserve Percentage on
such date divided by (ii) 1, minus the Loss Reserve Percentage on such date.

     “Loss Reserve Percentage” means, on any date, an amount equal to (a) the product of
(i) two times the highest average of the Default Ratios for any three consecutive calendar months
during the twelve most recent calendar months multiplied by (ii) the aggregate credit sales made by
all Originators during the seven most recent calendar months, multiplied by (iii) 25% of the
aggregate credit sales made by all Originators during the eighth and ninth most recent calendar

I-13

 

months, divided by (b) the Net Receivables Pool Balance as of such date; provided that the
calculation set forth in this definition shall not, during the Oliver Exclusion Period, include any
amounts in respect of Oliver Receivables.

     “Majority Purchaser Agents” means, at any time, the Purchaser Agents which in their
related Purchaser Group have Related Committed Purchasers whose Commitments aggregate more than 50%
of the aggregate of the Commitments of all Related Committed Purchasers in all Purchaser Groups;
provided, however, that so long as any one Related Committed Purchaser’s Commitment
is greater than 50% of the aggregate Commitments and there is more than one Purchaser Group, then
“Majority Purchaser Agents” shall mean a minimum of two Purchaser Agents which in their related
Purchaser Group have Related Committed Purchasers whose Commitments aggregate more than 50% of the
aggregate Commitment of all Related Committed Purchasers in all Purchaser Groups.

     “Material Adverse Effect” means, relative to any Person with respect to any event or
circumstance, a material adverse effect on:

     (a) the assets, operations, business or financial condition of an Originator, the
Performance Guarantor, the Seller or the Servicer,

     (b) the ability of any of an Originator, the Performance Guarantor, the Seller or
Servicer to perform its obligations under this Agreement or any other Transaction Document
to which it is a party,

     (c) the validity or enforceability of any of the Transaction Documents, or the
validity, enforceability or collectibility of the Pool Receivables, or

     (d) the status, perfection, enforceability or priority of the Administrator’s, any
Purchaser’s or the Seller’s interest in the Pool Assets.

     “Minimum Dilution Reserve” means at any time, the product of (a) the Aggregate Capital
plus, and (b)(i) the Minimum Dilution Reserve Percentage divided by (ii) 1 minus the Minimum
Dilution Reserve Percentage.

     “Minimum Dilution Reserve Percentage” means, at any time, the product of (a) the
12-month rolling average of the Dilution Ratio at such time multiplied by (b) the Dilution Horizon.

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

     “Net Receivables Pool Balance” means, at any time: (a) the Outstanding Balance of
Eligible Receivables then in the Receivables Pool minus (b) the Excess Concentration.

     “Notes” means short-term promissory notes issued, or to be issued, by any Conduit
Purchaser to fund its investments in accounts receivable or other financial assets.

     “Obligor” means, with respect to any Receivable, the Person obligated to make payments
pursuant to the Contract relating to such Receivable.

I-14

 

     “Oliver Exclusion Period” means the period commencing on the Closing Date and ending
on the date set forth in a written notice from the Administrator to the Servicer and the Seller,
which date shall be the date that the Administrator is satisfied (in its sole and absolute
discretion) that it has received all required information, data, records and other documentation
and materials required to include the Oliver Receivables as eligible for financing under this
Agreement.

     “Oliver Receivable” means a Receivable the Originator with respect to which is Oliver
Rubber Company, a California corporation.

     “Originator” means each Person from time to time party to the Sale Agreement as an
Originator.

     “Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof; provided, that any amounts denominated and payable in Canadian
Dollars shall be deemed to be the U.S. Dollar Equivalent of such amount at the time of
determination thereof.

     “Participant” has the meaning set forth in Section 6.3(b) of this Agreement.

     “Performance Guaranty” means the Performance Guaranty, dated as of the Closing Date,
by Cooper Tire, as performance guarantor, in favor of the Administrator for the benefit of the
Purchasers and Purchaser Agents, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

     “PNC” means PNC Bank, National Association.

     “Pool Assets” has the meaning set forth in Section 1.2(d) of this Agreement.

     “Pool Receivable” means a Receivable in the Receivables Pool.

     “Portion of Capital” means, with respect to any Purchaser and its related Capital, the
portion of such Capital being funded or maintained by such Purchaser by reference to a particular
interest rate basis.

     “Program Support Agreement” means and includes any Liquidity Agreement and any other
agreement entered into by any Program Support Provider providing for: (a) the issuance of one or
more letters of credit for the account of any Conduit Purchaser, (b) the issuance of one or more
surety bonds for which the such Conduit Purchaser is obligated to reimburse the applicable Program
Support Provider for any drawings thereunder, (c) the sale by such Conduit Purchaser to any Program
Support Provider of the Purchased Interest (or portions thereof) maintained by such Conduit
Purchaser and/or (d) the making of loans and/or other extensions of credit to any Conduit Purchaser
in connection with such Conduit Purchaser’s securitization program contemplated in this Agreement,
together with any letter of credit, surety bond or other instrument issued thereunder.

I-15

 

     “Program Support Provider” means and includes with respect to each Conduit Purchaser
any Liquidity Provider and any other Person (other than any customer of such Conduit Purchaser) now
or hereafter extending credit or having a commitment to extend credit to or for the account of, or
to make purchases from, such Conduit Purchaser pursuant to any Program Support Agreement.

     “Purchase” has the meaning set forth in Section 1.1(a) of this Agreement.

     “Purchase and Sale Indemnified Amounts” has the meaning set forth in Section
9.1 of the Sale Agreement.

     “Purchase and Sale Indemnified Party” has the meaning set forth in Section 9.1
of the Sale Agreement.

     “Purchase and Sale Termination Date” has the meaning set forth in Section 1.4
of the Sale Agreement.

     “Purchase and Sale Termination Event” has the meaning set forth in Section 8.1
of the Sale Agreement.

     “Purchase Date” means the date of which a Purchase or a reinvestment is made pursuant
to this Agreement.

     “Purchase Facility” has the meaning set forth in Section 1.1 of the Sale
Agreement.

     “Purchase Limit” means $175,000,000, as such amount may be reduced pursuant to
Section 1.1(b) of this Agreement or otherwise in connection with any Exiting Purchaser.
References to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit
minus the then outstanding Aggregate Capital.

     “Purchase Notice” has the meaning set forth in Section 1.2(a) to this
Agreement.

     “Purchase Price” has the meaning set forth in Section 2.1 of the Sale
Agreement.

     “Purchased Interest” means, at any time, the undivided percentage ownership interest
in: (a) each and every Pool Receivable now existing or hereafter arising, (b) all Related Security
with respect to such Pool Receivables and (c) all Collections with respect to, and other proceeds
of, such Pool Receivables and Related Security. Such undivided percentage interest shall be
computed as:

Aggregate Capital + Total Reserves

Net Receivables Pool Balance

The Purchased Interest shall be determined from time to time pursuant to Section 1.3 of
this Agreement.

     “Purchaser” means each Conduit Purchaser and/or each Related Committed Purchaser, as
applicable.

I-16

 

     “Purchaser Agent” means each Person acting as agent on behalf of a Purchaser Group and
designated as a Purchaser Agent for such Purchaser Group on the signature pages to this Agreement
or any other Person who becomes a party to this Agreement as a Purchaser Agent pursuant to an
Assumption Agreement or a Transfer Supplement.

     “Purchaser Group” means, for each Conduit Purchaser, such Conduit Purchaser, its
Related Committed Purchasers (if any) and its related Purchaser Agent.

     “Purchaser Group Fee Letter” has the meaning set forth in Section 1.5 of this
Agreement.

     “Purchasers’ Share” of any amount, at any time, means such amount multiplied by the
Purchased Interest at such time.

     “Purchasing Related Committed Purchaser” has the meaning set forth in Section
6.3(c) of this Agreement.

     “Ratable Share” means, for each Purchaser Group, such Purchaser Group’s aggregate
Commitments divided by the aggregate Commitments of all Purchaser Groups.

     “Rating Agency Condition” means, when applicable, with respect to any material event
or occurrence, receipt by the Administrator (or the applicable Purchaser Agent) of written
confirmation from each of Standard & Poor’s and Moody’s (and/or each other rating agency then
rating the Notes of the applicable Conduit Purchaser) that such event or occurrence shall not cause
the rating on the then outstanding Notes of any applicable Purchaser to be downgraded or withdrawn.

     “Receivable” means any indebtedness and other obligations owed to any Originator or
the Seller or any right of the Seller or any Originator to payment from or on behalf of an Obligor
or any right to reimbursement for funds paid or advanced by the Seller or any Originator on behalf
of an Obligor, whether constituting an account, chattel paper, payment intangible, instrument or
general intangible, however arising (whether or not earned by performance), and includes, without
limitation, the obligation to pay any finance charges, fees and other charges with respect thereto.
Indebtedness and other obligations arising from any one transaction, including, without
limitation, indebtedness and other obligations represented by an individual invoice or agreement,
shall constitute a Receivable separate from a Receivable consisting of the indebtedness and other
obligations arising from any other transaction.

     “Receivables Pool” means, at any time, all of the then outstanding Receivables
purchased by the Seller pursuant to the Sale Agreement prior to the Facility Termination Date.

     “Related Committed Purchaser” means each Person listed as such (and its respective
Commitment) for each Conduit Purchaser as set forth on the signature pages of this Agreement or in
any Assumption Agreement or Transfer Supplement.

     “Related Rights” has the meaning set forth in Section 1.1 of the Sale
Agreement.

     “Related Security” means, with respect to any Receivable:

I-17

 

     (a) all of the Seller’s and the Originator thereof’s interest in any goods (including
returned goods), and documentation of title evidencing the shipment or storage of any goods
(including returned goods), the sale of which gave rise to such Receivable,

     (b) all instruments and chattel paper that may evidence such Receivable,

     (c) all other security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the Contract
related to such Receivable or otherwise, together with all UCC financing statements or
similar filings relating thereto,

     (d) solely to the extent applicable to such Receivable, all of the Seller’s and the
Originator thereof’s rights, interests and claims under the Contracts relating to such
Receivable, and all guaranties, indemnities, insurance and other agreements (including the
related Contract) or arrangements of whatever character from time to time supporting or
securing payment of such Receivable or otherwise relating to such Receivable, whether
pursuant to the Contract related to such Receivable or otherwise, and

     (e) all of the Seller’s rights, interests and claims under the Sale Agreement and the
other Transaction Documents.

     “Sale Agreement” means the Purchase and Sale Agreement, dated as of the Closing Date
among the Seller and the Originators, as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time.

     “Seller” has the meaning set forth in the preamble to this Agreement.

     “Seller’s Share” of any amount means the greater of: (a) $0 and (b) such amount minus
the product of (i) such amount multiplied by (ii) the Purchased Interest.

     “Servicer” has the meaning set forth in the preamble to this Agreement.

     “Servicing Fee” shall mean the fee referred to in Section 4.6 of this
Agreement.

     “Servicing Fee Rate” shall have the meaning set forth in Section 4.6 of this
Agreement.

     “Settlement Date” means the 18th day of each calendar month (or if such day
is not a Business Day, the next occurring Business Day); provided, however, that on
and after the occurrence and continuation of any Termination Event, the Settlement Date shall be
the date selected as such by the Administrator (with the consent or at the direction of the
Majority Purchaser Agents) from time to time (it being understood that the Administrator
(with the consent or at the direction of the Majority Purchaser Agents) may select such Settlement
Date to occur as frequently as daily) or, in the absence of any such selection, the date which
would be the Settlement Date pursuant to this definition.

     “Specifically Reserved Dilution Amount” means, at any time of determination, the
“Cooper Tire Volume Rebate Liability”, which shall equal the amount recorded on the books and

I-18

 

records of Cooper Tire as the aggregate accrued liability for future volume rebate payments of
all Originators at such time.

     “Spot Rate” has the meaning set forth in the definition of “U.S. Dollar Equivalent”.

     “Solvent” means, with respect to any Person at any time, a condition under which:

     (i) the fair value and present fair saleable value of such Person’s total assets is, on
the date of determination, greater than such Person’s total liabilities (including
contingent and unliquidated liabilities) at such time;

     (ii) the fair value and present fair saleable value of such Person’s assets is greater
than the amount that will be required to pay such Person’s probable liability on its
existing debts as they become absolute and matured (“debts,” for this purpose,
includes all legal liabilities, whether matured or unmatured, liquidated or unliquidated,
absolute, fixed, or contingent);

     (iii) such Person is and shall continue to be able to pay all of its liabilities as
such liabilities mature; and

     (iv) such Person does not have unreasonably small capital with which to engage in its
current and in its anticipated business.

     For purposes of this definition:

     (A) the amount of a Person’s contingent or unliquidated liabilities at any time shall
be that amount which, in light of all the facts and circumstances then existing, represents
the amount which can reasonably be expected to become an actual or matured liability;

     (B) the “fair value” of an asset shall be the amount which may be realized within a
reasonable time either through collection or sale of such asset at its regular market value;

     (C) the “regular market value” of an asset shall be the amount which a capable and
diligent business person could obtain for such asset from an interested buyer who is willing
to Purchase such asset under ordinary selling conditions; and

     (D) the “present fair saleable value” of an asset means the amount which can be
obtained if such asset is sold with reasonable promptness in an arm’s-length transaction in
an existing and not theoretical market.

     “Standard & Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc.

     “Sub-Servicer” has the meaning set forth in Section 4.1(d) of this Agreement.

I-19

 

     “Subsidiary” means, as to any Person, a corporation, partnership, limited liability
company or other entity of which shares of stock of each class or other interests having ordinary
voting power (other than stock or other interests having such power only by reason of the happening
of a contingency) to elect a majority of the Board of Directors or other managers of such entity
are at the time owned, or management of which is otherwise controlled: (a) by such Person, (b) by
one or more Subsidiaries of such Person or (c) by such Person and one or more Subsidiaries of such
Person.

     “SunTrust Account” means that certain lock-box account (number 570 02 57 859/lockbox
number 102585) maintained at Sun Trust Bank.

     “Tangible Net Worth” means, with respect to any Person, the tangible net worth of such
Person as determined in accordance with GAAP.

     “Taxes” means, with respect to any Person, all taxes, charges, fees, levies or other
assessments (including income, gross receipts, profits, withholding, excise, property, sales, use,
license, occupation and franchise taxes and including any related interest, penalties or other
additions) imposed by any jurisdiction or taxing authority (whether foreign or domestic) under the
laws of which such Person is organized.

     “Termination Day” means: (a) each day on which the conditions set forth in Section
2 of Exhibit II to this Agreement are not satisfied or (b) each day that occurs on or
after the Facility Termination Date.

     “Termination Event” has the meaning specified in Exhibit V to this Agreement.

     “Total Reserves” means, at any time the sum of: (a) the Yield Reserve, plus (b) the
Specifically Reserved Dilution Amount, plus (c) the Canadian Currency Volatility Reserve, plus (d)
the greater of (i) the sum of the Loss Reserve plus the Dilution Reserve and (ii) the sum of the
Minimum Dilution Reserve plus the Concentration Reserve.

     “Transaction Documents” means this Agreement, the Lock-Box Agreements, each Purchaser
Group Fee Letter, the Sale Agreement, the Performance Guaranty and all other certificates,
instruments, reports, notices, agreements and documents executed or delivered under or in
connection with this Agreement, in each case as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with the terms thereof.

     “Transfer Supplement” has the meaning set forth in Section 6.3(c) of this
Agreement.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the
applicable jurisdiction.

     “Unmatured Purchase and Sale Termination Event” means any event which, with the giving
of notice or lapse of time, or both, would become a Purchase and Sale Termination Event.

     “Unmatured Termination Event” means an event that, with the giving of notice or lapse
of time, or both, would constitute a Termination Event.

I-20

 

     “U.S. Dollar Equivalent” means, at any date and with respect to a specified
amount denominated in Canadian Dollars for which a determination thereof is to be made, the U.S.
dollar equivalent of such specified amount of Canadian Dollars using the market exchange rate for
purchase of currency published in the Wall Street Journal on such day, or if not published, as
published by PNC Bank, National Association’s foreign exchange desk (the “Spot Rate”) on
the immediately preceding Determination Date.

     “Yield Period” means (a) with respect to any Portion of Capital funded by the issuance
of Notes, (i) initially the period commencing on (and including) the date of the initial purchase
or funding of such Portion of Capital and ending on (but not including) the next occurring
Settlement Date, and (ii) thereafter, each period commencing on (and including) the first day after
the last day of the immediately preceding Yield Period for such Portion of Capital and ending on
(but not including) the next occurring Settlement Date; and (b) with respect to any Portion of
Capital not funded by the issuance of Notes, (i) initially the period commencing on (and including)
the date of the initial purchase or funding of such Portion of Capital and ending such number of
days later (including a period of one day) as the Administrator (with the consent or at the
direction of the applicable Purchaser Agent) shall select, and (ii) thereafter, each period
commencing on the last day of the immediately preceding Yield Period for such Portion of Capital
and ending such number of days later (including a period of one day) as the Administrator (with the
consent or at the direction of the applicable Purchaser Agent) shall select; provided, that

     (i) any Yield Period (other than of one day) which would otherwise end on a day which
is not a Business Day shall be extended to the next succeeding Business Day;
provided, however, if Discount in respect of such Yield Period is computed
by reference to the Euro-Rate, and such Yield Period would otherwise end on a day which is
not a Business Day, and there is no subsequent Business Day in the same calendar month as
such day, such Yield Period shall end on the next preceding Business Day;

     (ii) in the case of any Yield Period of one day, (A) if such Yield Period is the
initial Yield Period for a purchase hereunder (other than a reinvestment), such Yield Period
shall be the day of such purchase; (B) any subsequently occurring Yield Period which is one
day shall, if the immediately preceding Yield Period is more than one day, be the last day
of such immediately preceding Yield Period, and, if the immediately preceding Yield Period
is one day, be the day next following such immediately preceding Yield Period; and (C) if
such Yield Period occurs on a day immediately preceding a day which is not a Business Day,
such Yield Period shall be extended to the next succeeding Business Day; and

     (iii) in the case of any Yield Period for any Portion of Capital which commences before
the Facility Termination Date and would otherwise end on a date occurring after the Facility
Termination Date, such Yield Period shall end on such Facility Termination Date and the
duration of each Yield Period which commences on or after the Facility Termination Date
shall be of such duration as shall be selected by the Administrator (with the consent or at
the direction of the applicable Purchaser Agent).

I-21

 

     “Yield Protection Fee” means, for any Yield Period, with respect to any Portion of
Capital, to the extent that (i) any payments are made by the Seller to the related Purchaser in
respect of such Capital hereunder prior to the applicable maturity date of any Notes or other
instruments or obligations used or incurred by such Purchaser to fund or maintain such Portion of
Capital or (ii) any failure by the Seller to borrow, continue or prepay any Portion of Capital on
the date specified in any Purchase Notice delivered pursuant to Section 1.2 of this
Agreement, the amount, if any, by which: (a) the additional Discount related to such Portion of
Capital that would have accrued through the maturity date of such Notes or other instruments on the
portion thereof for which payments were received from the Seller (or with respect to which the
Seller failed to borrow such amounts), exceeds (b) the income, if any, received by such Purchaser
from investing the proceeds so received in respect of such Portion of Capital, as determined by the
applicable Purchaser Agent, which determination shall be binding and conclusive for all purposes,
absent manifest error.

     “Yield Reserve” means, at any time the sum of (a) all accrued and unpaid Discount at
such time, plus (b) the following amount:

	 	 	 	 	 
	 

	 	{(BR + SFR)
	 	x 1.5(DSO) x Aggregate Capital}
	 

	 	 	 	 
	 

	 	      360	 	 

     where:

	 	 	 	 	 	 	 
	 

	 	BR
	 	=
	 	the Base Rate in effect at such time,
	 
	 	 	 	 	 	 
	 

	 	DSO
	 	=
	 	the Days’ Sales Outstanding, and
	 
	 	 	 	 	 	 
	 

	 	SFR
	 	=
	 	Servicing Fee Rate.

     Other Terms. (a) All accounting terms not specifically defined herein shall be
construed in accordance with generally accepted accounting principles. All terms used in Article 9
of the UCC in the State of New York, and not specifically defined herein, are used herein as
defined in such Article 9. Unless the context otherwise requires, “or” means “and/or,” and
“including” (and with correlative meaning “include” and “includes”) means including without
limiting the generality of any description preceding such term, and (b) any reference in any
Transaction Document to any monetary amount (other than an amount denominated in U.S. dollars)
shall mean the U.S. Dollar Equivalent of such monetary amount at the time of determination thereof.

I-22

 

EXHIBIT II

CONDITIONS OF PURCHASES

     1. Conditions Precedent to Initial Purchase. The initial Purchase under this
Agreement is subject to the following conditions precedent that the Administrator and each
Purchaser Agent shall have received on or before the date of such Purchase, each in form and
substance (including the date thereof) satisfactory to the Administrator and each Purchaser Agent:

     (a) A counterpart of this Agreement and the other Transaction Documents executed by the
parties thereto.

     (b) Certified copies of: (i) the resolutions of the Board of Directors of each of the Seller,
the Originators and the Servicer authorizing the execution, delivery and performance by the Seller,
such Originator and the Servicer, as the case may be, of this Agreement and the other Transaction
Documents to which it is a party; (ii) all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Agreement and the other Transaction
Documents and (iii) the organizational documents of the Seller, each Originator and the Servicer.

     (c) A certificate of the Secretary or Assistant Secretary of the Seller, the Originators and
the Servicer certifying the names and true signatures of its officers who are authorized to sign
this Agreement and the other Transaction Documents. Until the Administrator and each Purchaser
Agent receives a subsequent incumbency certificate from the Seller, an Originator or the Servicer,
as the case may be, the Administrator and each Purchaser Agent shall be entitled to rely on the
last such certificate delivered to it by the Seller, such Originator or the Servicer, as the case
may be.

     (d) Acknowledgment copies, or time stamped receipt copies, of proper financing statements,
duly filed on or before the date of such initial purchase under the UCC of all jurisdictions that
the Administrator and each Purchaser Agent may deem necessary or desirable in order to perfect the
interests of the Seller and the Administrator (on behalf of each Purchaser) contemplated by this
Agreement and the Sale Agreement.

     (e) Acknowledgment copies, or time-stamped receipt copies, of proper financing statements, if
any, necessary to release all security interests and other rights of any Person in the Receivables,
Contracts or Related Security previously granted by the Originators or the Seller.

     (f) Completed UCC search reports, dated on or shortly before the date of the initial purchase
hereunder, listing the financing statements filed in all applicable jurisdictions, that name the
Originators or the Seller as debtor, together with copies of such other financing statements, and
similar search reports with respect to judgment liens, federal tax liens and liens of the Pension
Benefit Guaranty Corporation in such jurisdictions, as the Administrator or any Purchaser Agent may
request, showing no Adverse Claims on any Pool Assets (other than those which have been released as
described in the preceding clause (e)).

     (g) Favorable opinions, addressed to each Rating Agency, the Administrator, each Purchaser,
each Purchaser Agent and each Liquidity Provider, in form and substance reasonably

II-1

 

satisfactory to the Administrator and each Purchaser Agent, of Shumaker, Loop & Kendrick, LLP,
counsel for Seller, the Originators and the Servicer, covering such matters as the Administrator or
any Purchaser Agent may reasonably request, including, without limitation, organizational and
enforceability matters, certain bankruptcy matters, certain UCC perfection and priority matters.

     (h) Satisfactory results of a review and audit (performed by representatives of the
Administrator) of the Servicer’s collection, operating and reporting systems, the Credit and
Collection Policy of each Originator, historical receivables data and accounts, including
satisfactory results of a review of the Servicer’s operating location(s) and satisfactory review
and approval of the Eligible Receivables in existence on the date of the initial purchase under
this Agreement.

     (i) A pro forma Information Package representing the performance of the Receivables Pool for
the calendar month before closing.

     (j) Evidence of payment by the Seller of all accrued and unpaid fees (including those
contemplated by each Purchaser Group Fee Letter), costs and expenses to the extent then due and
payable on the date thereof, including any such costs, fees and expenses arising under or
referenced in Section 6.4 of this Agreement and the applicable Purchaser Group Fee Letters.

     (k) Good standing certificates with respect to each of the Seller, the Originators and the
Servicer issued by the Secretary of State (or similar official) of the state of each such Person’s
organization and principal place of business.

     (l) To the extent required by each Conduit Purchaser’s commercial paper program, letters from
each of the rating agencies then rating the Notes confirming the rating of such Notes after giving
effect to the transaction contemplated by this Agreement.

     (m) A computer file containing all information with respect to the Receivables as the
Administrator or any Purchaser Agent may reasonably request.

     (n) Such other approvals, opinions or documents as the Administrator or any Purchaser Agent
may reasonably request.

     2. Conditions Precedent to All Purchases and Reinvestments. Each Purchase (including
the initial Purchase) and each reinvestment shall be subject to the further conditions precedent
that:

     (a) in the case of each purchase, the Servicer shall have delivered to the Administrator and
each Purchaser Agent on or before such purchase, in form and substance satisfactory to the
Administrator and each Purchaser Agent, the most recent Information Package to reflect the level of
the Aggregate Capital and related reserves after such subsequent purchase; and

     (b) on the date of such purchase or reinvestment the following statements shall be true (and
acceptance of the proceeds of such purchase or reinvestment shall be deemed a representation and
warranty by the Seller that such statements are then true):

II-2

 

     (i) the representations and warranties contained in Exhibit III to this
Agreement are true and correct in all material respects on and as of the date of such
purchase or reinvestment as though made on and as of such date except for representations
and warranties which apply as to an earlier date (in which case such representations and
warranties shall be true and correct as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such purchase or
reinvestment, that constitutes a Termination Event or an Unmatured Termination Event;

     (iii) the Aggregate Capital, after giving effect to any such Purchase or reinvestment
shall not be greater than the Purchase Limit, and the Purchased Interest shall not exceed
100%; and

     (iv) the Facility Termination Date has not occurred.

II-3

 

EXHIBIT III

REPRESENTATIONS AND WARRANTIES

     1. Representations and Warranties of the Seller. The Seller represents and warrants
to the Administrator, each Purchaser Agent and each Purchaser as of the date of execution of this
Agreement that:

     (a) Existence and Power. The Seller is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware, and has all organizational power
and all governmental licenses, authorizations, consents and approvals required to carry on its
business in each jurisdiction in which its business is conducted.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Seller of this Agreement and each other Transaction Document to which it is
a party are within the Seller’s organizational powers, have been duly authorized by all necessary
organizational action, require no action by or in respect of, or filing with (other than the filing
of UCC financing statements and continuation statements), any governmental body, agency or
official, and, do not contravene, or constitute a default under, any provision of applicable law or
regulation or of the operating agreement of the Seller or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Seller or result in the creation or imposition
of any lien (other than liens in favor of the Administrator) on assets of the Seller.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Seller to
the Administrator or any Purchaser Agent pursuant to or in connection with this Agreement or any
other Transaction Document is, and all such information hereafter furnished by the Seller to the
Administrator or any Purchaser Agent in writing pursuant to this Agreement or any Transaction
Document will be, true and accurate in all material respects on the date such information is stated
or certified.

     (e) Actions, Suits. There are no actions, suits or proceedings pending or, to the
best of the Seller’s knowledge, threatened against or affecting the Seller or any of its Affiliates
or their respective properties, in or before any court, arbitrator or other body.

     (f) Accuracy of Exhibits; Lock-Box Arrangements. The names and addresses of all the
Lock-Box Banks together with the account numbers of the Lock-Box Accounts at such Lock-Box Banks,
are specified in Schedule II to this Agreement (or at such other Lock-Box Banks and/or with
such other Lock-Box Accounts as have been notified to the Administrator), and all Lock-Box Accounts
are subject to Lock-Box Agreements. All information on each Exhibit, Schedule or Annex to this
Agreement or the other Transaction Documents (as updated by the

III-1

 

Seller from time to time) is true and complete. The Seller has delivered a copy of all
Lock-Box Agreements to the Administrator. The Seller has not granted any interest in any Lock-Box
Account (or any related lock-box or post office box) to any Person other than the Administrator
and, upon delivery to a Lock-Box Bank of the related Lock-Box Agreement, the Administrator will
have exclusive ownership and control of the Lock-Box Account at such Lock-Box Bank.

     (g) No Material Adverse Effect. Since the date of formation of Seller as set forth in
its certificate of formation, there has been no Material Adverse Effect.

     (h) Names and Location. The Seller has not used any company names, trade names or
assumed names other than its name set forth on the signature pages of this Agreement. The Seller is
“located” (as such term is defined in the applicable UCC) in Delaware. The office where the Seller
keeps its records concerning the Receivables is at the address set forth below its signature to
this Agreement.

     (i) Margin Stock. The Seller is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U and X,
as issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Purchase
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

     (j) Eligible Receivables. Each Pool Receivable included as an Eligible Receivable in
the calculation of the Net Receivables Pool Balance is an Eligible Receivable.

     (k) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy of each Originator with regard to each Receivable originated
by such Originator.

     (l) Investment Company Act. The Seller is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     2. Representations and Warranties of the Servicer. The Servicer represents and
warrants to the Administrator, each Purchaser Agent and each Purchaser as of the date of execution
of this Agreement that:

     (a) Existence and Power. The Servicer is a corporation duly organized, validly
existing and in good standing under the laws of its state of organization, and has all company
power and all governmental licenses, authorizations, consents and approvals required to carry on
its business in each jurisdiction in which its business is conducted.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Servicer of this Agreement and each other Transaction Document to which it
is a party are within the Servicer’s organizational powers, have been duly authorized by all
necessary organizational action, require no action by or in respect of, or filing with, any
governmental body, agency or official other than filings and disclosures made under securities
laws, and do not contravene, or constitute a default under, any provision of applicable law or
regulation or of the Certificate of Incorporation of the Servicer or of any judgment,

III-2

 

injunction, order or decree or agreement or other instrument binding upon the Servicer or
result in the creation or imposition of any lien on assets of the Servicer or any of its
Subsidiaries.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement
of creditors’ rights generally and by general principles of equity, regardless of whether
enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Servicer to
the Administrator or any Purchaser Agent pursuant to or in connection with this Agreement or any
other Transaction Document is, and all such information hereafter furnished by the Servicer to the
Administrator or any Purchaser Agent in writing pursuant to this Agreement or any other Transaction
Document will be, true and accurate in all material respects on the date such information is stated
or certified.

     (e) Actions, Suits. Except as set forth in Schedule IV, there are no actions,
suits or proceedings pending or, to the best of the Servicer’s knowledge, threatened against or
affecting the Servicer or any of its Affiliates or their respective properties, in or before any
court, arbitrator or other body, which could reasonably be expected to have a Material Adverse
Effect upon the ability of the Servicer (or such Affiliate) to perform its obligations under this
Agreement or any other Transaction Document to which it is a party.

     (f) No Material Adverse Effect. Since the date of the financial statements described
in Section 2(i) below, there has been no Material Adverse Effect.

     (g) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy of each Originator with regard to each Receivable originated
by such Originator.

     (h) Investment Company Act. The Servicer is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     (i) Financial Information. The balance sheets of Cooper Tire and its consolidated
Subsidiaries as at December 31, 2005, and the related statements of income and retained earnings
for the fiscal year then ended, copies of which have been furnished to the Administrator and each
Purchaser Agent, fairly present the financial condition of Cooper Tire and its consolidated
Subsidiaries as at such date and the results of the operations of Cooper Tire and its Subsidiaries
for the period ended on such date, all in accordance with generally accepted accounting principles
consistently applied.

     3. Representations, Warranties and Agreements Relating to the Security Interest. The
Seller hereby makes the following representations, warranties and agreements with respect to the
Receivables and Related Security:

     (a) The Receivables.

III-3

 

     (i) Creation. This Agreement creates a valid and continuing security interest
(as defined in the applicable UCC) in the Receivables included in the Receivables Pool in
favor of the Administrator (for the benefit of the Purchasers), which security interest is
prior to all other Adverse Claims, and is enforceable as such as against creditors of and
purchasers from the Seller.

     (ii) Nature of Receivables. The Receivables included in the Receivables Pool
constitute either “accounts”, “general intangibles” or “tangible chattel paper” within the
meaning of the applicable UCC.

     (iii) Ownership of Receivables. The Seller owns and has good and marketable
title to the Receivables included in the Receivables Pool and Related Security free and
clear of any Adverse Claim.

     (iv) Perfection and Related Security. The Seller has caused (and will cause
each Originator to cause), within ten days after the Closing Date, the filing of all
appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the sale of the Receivables and
Related Security from such Originator to the Seller pursuant to the Sale Agreement, and the
sale and security interest therein from the Seller to the Administrator under this
Agreement, to the extent that such collateral constitutes “accounts,” “general intangibles,”
or “tangible chattel paper.”

     (v) Tangible Chattel Paper. With respect to any Receivables included in the
Receivables Pool that constitute “tangible chattel paper”, if any, the Seller (or the
Servicer on its behalf) has in its possession the original copies of such tangible chattel
paper that constitute or evidence such Receivables, and the Seller has caused (and will
cause the applicable Originator to cause), within ten days after the Closing Date, the
filing of financing statements described in clause (iv), above, each of which will
contain a statement that: “A purchase of, or security interest in, any collateral described
in this financing statement will violate the rights of the Administrator.” The Receivables
to the extent they are evidenced by “tangible chattel paper” do not have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Seller or the Administrator.

     (b) The Collection Account.

     (i) Nature of Account. Each Lock-Box Account constitutes a “deposit account”
within the meaning of the applicable UCC.

     (ii) Ownership. The Seller owns and has good and marketable title to the
Lock-Box Accounts and Collection Account free and clear of any Adverse Claim.

     (iii) Perfection. The Seller has delivered to the Administrator a fully
executed Lock-Box Agreement relating to each Lock-Box Account, pursuant to which each
applicable Lock-Box Bank, respectively, has agreed, following the occurrence and
continuation of a Termination Event, to comply with all instructions originated by the

III-4

 

Administrator (on behalf of the Purchasers) directing the disposition of funds in such
Lock-Box Account without further consent by the Seller or the Servicer.

     (c) Priority.

     (i) Other than the transfer of the Receivables to the Seller and the Administrator
under the Sale Agreement and this Agreement, respectively, and/or the security interest
granted to the Seller and the Administrator pursuant to the Sale Agreement and this
Agreement, respectively, neither the Seller nor any Originator has pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Receivables transferred or
purported to be transferred under the Transaction Documents, the Lock-Box Accounts or any
subaccount thereof, except for any such pledge, grant or other conveyance which has been
released or terminated. Neither the Seller nor any Originator has authorized the filing of,
or is aware of any financing statements against either the Seller or such Originator that
include a description of Receivables transferred or purported to be transferred under the
Transaction Documents, the Lock-Box Accounts or any subaccount thereof, other than any
financing statement (i) relating to the sale thereof by such Originator to the Seller under
the Sale Agreement, (ii) relating to the security interest granted to the Administrator
under this Agreement, or (iii) that has been released or terminated.

     (ii) The Seller is not aware of any judgment, ERISA or tax lien filings against either
the Seller, the Servicer or any Originator.

     (iii) The Lock-Box Accounts are not in the name of any person other than the Seller or
the Administrator. Neither the Seller nor the Servicer has consented to any bank
maintaining such account to comply with instructions of any person other than the
Administrator.

     (d) Survival of Supplemental Representations. Notwithstanding any other provision of
this Agreement or any other Transaction Document, the representations contained in this Section
shall be continuing, and remain in full force and effect until such time as the Purchased Interest
and all other obligations under this Agreement have been finally and fully paid and performed.

     (e) No Waiver. To the extent required pursuant to the securitization program of any
Conduit Purchaser, the parties to this Agreement: (i) shall not, without obtaining a confirmation
of the then-current rating of the Notes, waive any of the representations set forth in this
Section; (ii) shall provide the Ratings Agencies with prompt written notice of any breach of any
representations set forth in this Section, and shall not, without obtaining a confirmation of the
then-current rating of the Notes (as determined after any adjustment or withdrawal of the ratings
following notice of such breach) waive a breach of any of the representations set forth in this
Section.

     (f) Servicer to Maintain Perfection and Priority. In order to evidence the interests
of the Administrator under this Agreement, the Servicer shall, from time to time take such action,
or execute and deliver such instruments as may be necessary (including, without limitation, such

III-5

 

actions as are reasonably requested by the Administrator or any Purchaser Agent) to maintain
and perfect, as a first-priority interest, the Administrator’s security interest in the
Receivables, Related Security and Collections. The Servicer shall, from time to time and within
the time limits established by law, prepare and present to the Administrator for the
Administrator’s authorization and approval, all financing statements, amendments, continuations or
initial financing statements in lieu of a continuation statement, or other filings necessary to
continue, maintain and perfect the Administrator’s security interest as a first-priority interest.
The Administrator’s approval of such filings shall authorize the Servicer to file such financing
statements under the UCC without the signature of the Seller, any Originator or the Administrator
where allowed by applicable law. Notwithstanding anything else in the Transaction Documents to the
contrary, the Servicer shall not have any authority to file a termination, partial termination,
release, partial release, or any amendment that deletes the name of a debtor or excludes collateral
of any such financing statements, without the prior written consent of the Administrator and each
Purchaser Agent.

     4. Reaffirmation of Representations and Warranties. On the date of each Purchase
and/or reinvestment hereunder, and on the date each Information Package or other report is
delivered to the Administrator, any Purchaser Agent or any Purchaser hereunder, the Seller and the
Servicer, by accepting the proceeds of such Purchase or reinvestment and/or the provision of such
information or report, shall each be deemed to have certified that (i) all representations and
warranties of the Seller and the Servicer, as applicable, described in this Exhibit III, as
from time to time amended in accordance with the terms hereof, are correct on and as of such day as
though made on and as of such day, except for representations and warranties which apply as to an
earlier date (in which case such representations and warranties shall be true and correct as of
such date), and (ii) no event has occurred or is continuing, or would result from any such
Purchase, which constitutes a Termination Event or an Unmatured Termination Event.

III-6

 

EXHIBIT IV

COVENANTS

     1. Covenants of the Seller. At all times from the date hereof until the latest of the
Facility Termination Date, the date on which no Capital of or Discount in respect of the Purchased
Interest shall be outstanding, or the date all other amounts owed by the Seller under this
Agreement to any Purchaser, Purchaser Agent, the Administrator and any other Indemnified Party or
Affected Person shall be paid in full:

     (a) Financial Reporting. The Seller will maintain a system of accounting established
and administered in accordance with generally accepted accounting principles as in effect in the
appropriate jurisdiction, and the Seller (or the Servicer on its behalf) shall furnish to the
Administrator and each Purchaser Agent:

     (i) Annual Reporting. Promptly upon completion and in no event later than 120
days after the close of each fiscal year of the Seller, annual unaudited financial
statements of the Seller certified by a designated financial or other officer of the Seller.

     (ii) Information Packages. As soon as available and in any event not later
than two Business Days prior to the Settlement Date, an Information Package as of the most
recently completed calendar month.

     (iii) Other Information. Such other information (including non-financial
information) as the Administrator or any Purchaser Agent may from time to time reasonably
request.

     (b) Notices. The Seller will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A statement
of the chief financial officer or chief accounting officer of the Seller setting forth
details of any Termination Event or Unmatured Termination Event and the action which the
Seller proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation or
warranty to be true (when made or at any time thereafter) with respect to the Receivables
included in the Receivables Pool.

     (iii) Litigation. The institution of any litigation, arbitration proceeding or
governmental proceeding which may have a Material Adverse Effect.

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool
Receivables or Collections with respect thereto, (B) any Person other than the Seller, the
Servicer or the Administrator shall obtain any rights or direct any action with respect to
any Lock-Box Account (or related lock-box or post office box) or (C) any

IV-1

 

Obligor shall receive any change in payment instructions with respect to Pool
Receivable(s) from a Person other than the Servicer or the Administrator.

     (v) ERISA and Other Claims. Promptly after the filing or receiving thereof,
copies of all reports and notices that the Seller or any ERISA Affiliate files under ERISA
with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S.
Department of Labor or that the Seller or any Affiliate receives from any of the foregoing
or from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which
the Seller or any of its Affiliates is or was, within the preceding five years, a
contributing employer, in each case in respect of any Reportable Event (as defined in ERISA)
that could, in the aggregate, result in the imposition of liability on the Seller and/or any
such Affiliate.

     (c) Conduct of Business. The Seller will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly organized, validly existing and in good
standing as a domestic organization in its jurisdiction of organization and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted.

     (d) Compliance with Laws. The Seller will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject.

     (e) Furnishing of Information and Inspection of Receivables. The Seller will furnish
to the Administrator and each Purchaser Agent from time to time such information with respect to
the Pool Receivables as the Administrator or such Purchaser Agent may reasonably request. The
Seller will, at the Seller’s expense, at any time and from time to time during regular business
hours with prior written notice (i) permit the Administrator or any Purchaser Agent, or their
respective agents or representatives, (A) to examine and make copies of and abstracts from all
books and records relating to the Pool Receivables or other Pool Assets and (B) to visit the
offices and properties of the Seller for the purpose of examining such books and records, and to
discuss matters relating to the Pool Receivables, other Pool Assets or the Seller’s performance
hereunder or under the other Transaction Documents to which it is a party with any of the officers,
directors, employees or independent public accountants of the Seller (provided that representatives
of the Seller are present during such discussions) having knowledge of such matters and (ii)
without limiting the provisions of clause (i) above, from time to time during regular
business hours, at the Seller’s expense, upon reasonable prior written notice from the
Administrator and the Purchaser Agents, permit certified public accountants or other auditors
acceptable to the Administrator to conduct a review of its books and records with respect to the
Pool Receivables.

     (f) Payments on Receivables, Accounts. The Seller will, and will cause each
Originator to, at all times instruct all Obligors to deliver payments on the Pool Receivables to a
Lock-Box Account or the SunTrust Account; provided that no later than ninety (90) days from the
Closing Date, the Seller shall have terminated (or caused to be terminated) the SunTrust Account,
and instructed all applicable Obligors to remit Collections to a Lock-Box Account. If any such
payments or other Collections are received by the Seller or an Originator, it shall hold such
payments in trust for the benefit of the Administrator and the Purchasers and promptly (but

IV-2

 

in any event within two Business Days after receipt) remit such funds into a Lock-Box Account.
The Seller will cause each Lock-Box Bank to comply with the terms of each applicable Lock-Box
Agreement. The Seller will not permit the funds other than Collections on Pool Receivables and
other Pool Assets to be deposited into any Lock-Box Account. If such funds are nevertheless
deposited into any Lock-Box Account, the Seller will promptly identify such funds for segregation.
The Seller will not, and will not permit the Servicer, any Originator or other Person to, commingle
Collections or other funds to which the Administrator, any Purchaser Agent or any Purchaser is
entitled with any other funds. The Seller shall only add, and shall only permit an Originator to
add, a Lock-Box Bank (or the related lock-box or post office box), or Lock-Box Account to those
listed on Schedule II to this Agreement, if the Administrator has received notice of such addition,
a copy of any new Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement
in form and substance acceptable to the Administrator from any such new Lock-Box Bank. The Seller
shall only terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post
office box), upon 30 days’ advance notice to the Administrator.

     (g) Sales, Liens, etc. Except as otherwise provided herein, the Seller will not sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any
Adverse Claim upon (including, without limitation, the filing of any financing statement) or with
respect to, any Pool Receivable or other Pool Asset, or assign any right to receive income in
respect thereof.

     (h) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Seller will not extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract
related thereto, without the prior written consent of the Administrator and the Majority Purchaser
Agents. The Seller shall at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts related
to the Pool Receivables, and timely and fully comply in all material respects with the Credit and
Collection Policy with regard to each Receivable and the related Contract.

     (i) Change in Business. The Seller will not (i) make any change in the character of
its business, which change would impair the collectibility of any Pool Receivable or (ii) make any
change in any Credit and Collection Policy that could reasonably be expected to materially
adversely affect the collectibility of the Pool Receivables, the enforceability of any related
Contract or its ability to perform its obligations under the related Contract or the Transaction
Documents, in the case of either (i) or (ii) above, without the prior written consent of the
Administrator and each Purchaser Agent. The Seller shall not make any change in any Credit and
Collection Policy without giving prior written notice thereof to the Administrator and each
Purchaser Agent.

     (j) Fundamental Changes. The Seller shall not, without the prior written consent of
the Administrator and the Majority Purchaser Agents, permit itself (i) to merge or consolidate with
or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now owned or hereafter
acquired) to, any Person or (ii) to be owned by any Person other than Cooper Tire and thereby cause
Cooper Tire’s percentage of ownership or control of the Seller to be reduced. The Seller

IV-3

 

shall provide the Administrator and each Purchaser Agent with at least 30 days’ prior written
notice before making any change in the Seller’s name, location or making any other change in the
Seller’s identity or corporate structure that could impair or otherwise render any UCC financing
statement filed in connection with this Agreement “seriously misleading” as such term (or similar
term) is used in the applicable UCC; each notice to the Administrator and the Purchaser Agents
pursuant to this sentence shall set forth the applicable change and the proposed effective date
thereof. The Seller will also maintain and implement (or cause the Servicer to maintain and
implement) administrative and operating procedures (including an ability to recreate records
evidencing Pool Receivables and related Contracts in the event of the destruction of the originals
thereof), and keep and maintain (or cause the Servicer to keep and maintain) all documents, books,
records, computer tapes and disks and other information reasonably necessary or advisable for the
collection of all Pool Receivables (including records adequate to permit the daily identification
of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable).

     (k) Change in Payment Instructions to Obligors. The Seller shall not (and shall cause
the Originators not to) add to, replace or terminate any of the Lock-Box Accounts (or any related
lock-box or post office box) listed in Schedule II hereto or make any change in its (or their)
instructions to the Obligors regarding payments to be made to the Lock-Box Accounts (or any related
lock-box or post office box), unless the Administrator and each Purchaser Agent shall have received
(x) prior written notice of such addition, termination or change and (y) signed and acknowledged
Lock-Box Agreements with respect to such new Lock-Box Accounts (or any related lock-box or post
office box).

     (l) Ownership Interest, Etc. The Seller shall (and shall cause the Servicer to), at
its expense, take all action necessary or desirable to establish and maintain a valid and
enforceable undivided percentage ownership or security interest, to the extent of the Purchased
Interest, in the Pool Receivables, the Related Security and Collections with respect thereto, and a
first priority perfected security interest in the Pool Assets, in each case free and clear of any
Adverse Claim, in favor of the Administrator (on behalf of the Purchasers), including taking such
action to perfect, protect or more fully evidence the interest of the Administrator (on behalf of
the Purchasers) as the Administrator or any Purchaser Agent, may reasonably request.

     (m) Certain Agreements. Without the prior written consent of the Administrator and the
Majority Purchaser Agents, the Seller will not amend, modify, waive, revoke or terminate any
Transaction Document to which it is a party or any provision of the Seller’s organizational
documents which requires the consent of the “Independent Member” (as defined in the Seller’s
operating agreement).

     (n) Restricted Payments. (i) Except pursuant to clause (ii) below, the Seller
will not: (A) purchase or redeem any shares of its capital stock, (B) declare or pay any dividend
or set aside any funds for any such purpose, (C) prepay, purchase or redeem any Debt, (D) lend or
advance any funds or (E) repay any loans or advances to, for or from any of its Affiliates (the
amounts described in clauses (A) through (E) being referred to as “Restricted
Payments”).

     (i) Subject to the limitations set forth in clause (iii) below, the Seller may
make Restricted Payments so long as such Restricted Payments are made only in one or more

IV-4

 

of the following ways: (A) the Seller may make cash payments (including prepayments) on
the Company Notes in accordance with their respective terms, and (B) if no amounts are then
outstanding under any Company Note, the Seller may declare and pay dividends.

     (ii) The Seller may make Restricted Payments only out of the funds, if any, it receives
pursuant to Sections 1.4(b)(ii) and (iv) and 1.4(c) of this
Agreement. Furthermore, the Seller shall not pay, make or declare: (A) any dividend if,
after giving effect thereto, the Tangible Net Worth of the Seller would be less than
$10,000,000, or (B) any Restricted Payment (including any dividend) if, after giving effect
thereto, any Termination Event or Unmatured Termination Event shall have occurred and be
continuing.

     (o) Other Business. The Seller will not: (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) create, incur or permit to exist any
Debt of any kind (or cause or permit to be issued for its account any letters of credit or bankers’
acceptances) other than pursuant to this Agreement or the Company Notes, or (iii) form any
Subsidiary or make any investments in any other Person; provided, however, that the
Seller shall be permitted to incur minimal obligations to the extent necessary for the day-to-day
operations of the Seller (such as expenses for stationery, audits, maintenance of legal status,
etc.).

     (p) Use of Seller’s Share of Collections. The Seller shall apply the Seller’s Share of
Collections to make payments in the following order of priority: (i) the payment of its expenses
(including all obligations payable to the Purchasers, the Purchaser Agents and the Administrator
under this Agreement and under the Purchaser Group Fee Letters), (ii) the payment of accrued and
unpaid interest on the Company Note and (iii) other legal and valid corporate purposes.

     (q) Tangible Net Worth. The Seller will not permit its Tangible Net Worth, at any
time, to be less than $10,000,000.

     2. Covenants of the Servicer. At all times from the date hereof until the latest of
the Facility Termination Date, the date on which no Capital of or Discount in respect of the
Purchased Interest shall be outstanding, or the date all other amounts owed by the Seller or the
Servicer under this Agreement to any Purchaser, Purchaser Agent, the Administrator and any other
Indemnified Party or Affected Person shall be paid in full:

     (a) Financial Reporting. The Servicer will maintain a system of accounting
established and administered in accordance with generally accepted accounting principles as in
effect in the appropriate jurisdiction, and the Servicer shall furnish to the Administrator and
each Purchaser Agent:

     (i) Annual Reporting. Promptly upon completion and in no event later than 120
days after the close of each fiscal year of Cooper Tire, annual audited financial statements
of Cooper Tire and its consolidated subsidiaries certified by independent certified public
accountants selected by Cooper Tire but reasonably acceptable to the Administrator and each
such Purchaser Agent, prepared in accordance with generally accepted accounting principles,
including consolidated balance sheets as of the end of

IV-5

 

     such period, consolidated statements of income, related profit and loss and
reconciliation of surplus statements, and a statement of changes in financial position.

     (ii) Quarterly Reporting. Promptly upon completion and in no event later than
60 days after the close of each financial quarter of Cooper Tire, unaudited financial
statements of Cooper Tire certified by a designated financial officer of Cooper Tire
prepared in accordance with generally accepted accounting principles, including consolidated
balance sheets of Cooper Tire as of the end of such period and related profit and loss and
reconciliation of surplus statements.

     (iii) Compliance Certificates. Together with the annual report required above,
a compliance certificate in form and substance acceptable to the Administrator and each
Purchaser Agent signed by its chief accounting officer or treasurer solely in their
capacities as officers of the Servicer stating that no Termination Event or Unmatured
Termination Event exists, or if any Termination Event or Unmatured Termination Event exists,
stating the nature and status thereof.

     (iv) Information Packages. As soon as available and in any event not later
than two Business Days prior to the Settlement Date, an Information Package as of the most
recently completed calendar month.

     (v) “Compliance Certificate” under Credit Agreement. As and when each
“Compliance Certificate” is delivered under the revolving credit agreement described in
clause (m) of Exhibit V to this Agreement, an executed copy of such
certificate.

     (vi) Other Information. Such other information (including non-financial
information) as the Administrator or any Purchaser Agent may from time to time reasonably
request.

     (b) Notices. The Servicer will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A statement
of the chief financial officer or chief accounting officer of the Servicer setting forth
details of any Termination Event or Unmatured Termination Event and the action which the
Servicer proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation or
warranty to be true (when made or at any time thereafter) with respect to the Pool
Receivables.

     (iii) Litigation. The institution of any litigation, arbitration proceeding or
governmental proceeding which could reasonably be expected to have a Material Adverse
Effect.

IV-6

 

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool
Receivables or Collections with respect thereto, (B) any Person other than the Seller, the
Servicer or the Administrator shall obtain any rights or direct any action with respect to
any Lock Box Account (or related lock-box or post office box) or (C) any Obligor shall
receive any change in payment instructions with respect to Pool Receivable(s) from a Person
other than the Servicer or the Administrator.

     (c) Conduct of Business. The Servicer will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly incorporated, validly existing and in
good standing as a domestic corporation in its jurisdiction of incorporation and maintain all
requisite authority to conduct its business in each jurisdiction in which its business is
conducted.

     (d) Compliance with Laws. The Servicer will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject if the failure
to comply could reasonably be expected to have a Material Adverse Effect.

     (e) Furnishing of Information and Inspection of Receivables. The Servicer will
furnish to the Administrator and each Purchaser Agent from time to time such information with
respect to the Pool Receivables as the Administrator or such Purchaser Agent may reasonably
request. The Servicer will, at the Servicer’s expense, at any time and from time to time during
regular business hours with prior written notice (i) permit the Administrator or any Purchaser
Agent, or their respective agents or representatives, (A) to examine and make copies of and
abstracts from all books and records relating to the Pool Receivables or other Pool Assets and (B)
to visit the offices and properties of the Servicer for the purpose of examining such books and
records, and to discuss matters relating to the Pool Receivables, other Pool Assets or the
Servicer’s performance hereunder or under the other Transaction Documents to which it is a party
with any of the officers, directors, employees or independent public accountants of the Servicer
(provided that representatives of the Servicer are present during such discussions) having
knowledge of such matters and (ii) without limiting the provisions of clause (i) above,
during regular business hours, at the Servicer’s expense, upon reasonable prior written notice from
the Administrator, permit certified public accountants or other auditors acceptable to the
Administrator and the Purchaser Agents to conduct, a review of its books and records with respect
to the Pool Receivables.

     (f) Payments on Receivables, Accounts. The Servicer will at all times instruct all
Obligors to deliver payments on the Pool Receivables to a Lock-Box Account or to the SunTrust
Account; provided that no later than ninety (90) days from the Closing Date, the Seller shall have
terminated (or caused to be terminated) the SunTrust Account, and instructed all applicable
Obligors to remit Collections to a Lock-Box Account. If any such payments or other Collections are
received by the Servicer, it shall hold such payments in trust for the benefit of the Administrator
and the Purchasers and promptly (but in any event within two Business Days after receipt) remit
such funds into a Lock-Box Account. The Servicer will cause each Lock-Box Bank to comply with the
terms of each applicable Lock-Box Agreement. The Servicer will not permit the funds other than
Collections on Pool Receivables and other Pool Assets to be deposited into any Lock-Box Account.
If such funds are nevertheless deposited into any Lock-Box Account, the Servicer will promptly
identify such funds for segregation. The Servicer will

IV-7

 

not commingle Collections or other funds to which the Administrator, any Purchaser Agent or
any Purchaser is entitled with any other funds. The Servicer shall only add, a Lock-Box Bank (or
the related lock-box or post office box), or Lock-Box Account to those listed on Schedule II to
this Agreement, if the Administrator has received notice of such addition, a copy of any new
Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement in form and
substance acceptable to the Administrator from any such new Lock-Box Bank. The Servicer shall only
terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post office box),
upon 30 days’ advance notice to the Administrator.

     (g) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Servicer will not extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract
related thereto, without the prior written consent of the Administrator and the Majority Purchaser
Agents. The Servicer shall at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts related
to the Pool Receivables, and timely and fully comply in all material respects with the Credit and
Collection Policy with regard to each Pool Receivable and the related Contract.

     (h) Change in Business. The Servicer will not (i) make any change in the character of
its business, which change would impair the collectibility of any Pool Receivable or (ii) make any
change in any Credit and Collection Policy that could reasonably be expected to adversely affect
the collectibility of the Pool Receivables, the enforceability of any related Contract or its
ability to perform its obligations under the related Contract or the Transaction Documents, in the
case of either (i) or (ii) above, without the prior written consent of the Administrator and each
Purchaser Agent. The Servicer shall not make any change in any Credit and Collection Policy
without giving prior written notice thereof to the Administrator and each Purchaser Agent.

     (i) Records. The Servicer will maintain and implement administrative and operating
procedures (including an ability to recreate records evidencing Pool Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep and maintain all
documents, books, records, computer tapes and disks and other information reasonably necessary or
advisable for the collection of all Pool Receivables (including records adequate to permit the
daily identification of each Pool Receivable and all Collections of and adjustments to each
existing Pool Receivable).

     (j) Change in Payment Instructions to Obligors. The Servicer shall not add to,
replace or terminate any of the Lock-Box Accounts (or any related lock-box or post office box)
listed in Schedule II hereto or make any change in its instructions to the Obligors
regarding payments to be made to the Lock-Box Accounts (or any related lock-box or post office
box), unless the Administrator and each Purchaser Agent shall have received (x) prior written
notice of such addition, termination or change and (y) signed and acknowledged Lock-Box Agreements
with respect to such new Lock-Box Accounts (or any related lock-box or post office box).

     (k) Ownership Interest, Etc. The Servicer shall, at its expense, take all action
necessary or desirable to establish and maintain a valid and enforceable undivided percentage
ownership or security interest, to the extent of the Purchased Interest, in the Pool Receivables,
the Related Security and Collections with respect thereto, and a first priority perfected security

IV-8

 

interest in the Pool Assets, in each case free and clear of any Adverse Claim in favor of the
Administrator (on behalf of the Purchasers), including taking such action to perfect, protect or
more fully evidence the interest of the Administrator (on behalf of the Purchasers) as the
Administrator or any Purchaser Agent, may reasonably request.

     3. Separate Existence. Each of the Seller and the Servicer hereby acknowledges that
the Purchasers and the Administrator are entering into the transactions contemplated by this
Agreement and the other Transaction Documents in reliance upon the Seller’s identity as a legal
entity separate from Cooper Tire, the Originators and their respective Affiliates. Therefore, from
and after the date hereof, each of the Seller and the Servicer shall take all steps specifically
required by this Agreement or reasonably required by the Administrator or any Purchaser Agent to
continue the Seller’s identity as a separate legal entity and to make it apparent to third Persons
that the Seller is an entity with assets and liabilities distinct from those of Cooper Tire, any
Originator and any other Person, and is not a division of Cooper Tire, any Originator or any other
Person. Without limiting the generality of the foregoing and in addition to and consistent with the
other covenants set forth herein, each of the Seller and the Servicer shall take such actions as
shall be required in order that:

     (a) The Seller will be a limited liability company whose primary activities are restricted in
its operating agreement to: (i) purchasing or otherwise acquiring from the Originators, owning,
holding, granting security interests or selling interests in Pool Assets, (ii) entering into
agreements for the selling and servicing of the Receivables Pool, and (iii) conducting such other
activities as it deems necessary or appropriate to carry out its primary activities;

     (b) The Seller shall not engage in any business or activity, or incur any indebtedness or
liability (including, without limitation, any assumption or guaranty of any obligation of Cooper
Tire, any Originator or any Affiliate thereof), other than as expressly permitted by the
Transaction Documents;

     (c) (i) Not less than one member of the Seller’s Board of Directors (the “Independent
Director”) shall be a natural person (A) who is not at the time of initial appointment and has not
been at any time during the five (5) years preceding such appointment: (1) an equityholder,
director (other than the Independent Director), officer, employee, member, manager, attorney or
partner of Cooper Tire, Seller or any of their Affiliates; (2) a customer of, supplier to or other
person who derives more than 1% of its purchases or revenues from its activities with Cooper Tire,
Seller or any of their Affiliates; (3) a person or other entity controlling, controlled by or under
common control with any such equity holder, partner, member, manager customer, supplier or other
person; or (4) a member of the immediate family of any such equity holder, director, officer,
employee, member, manager, partner, customer, supplier or other person and (B) who has (1) prior
experience as an independent director for a corporation or an independent manager of a limited
liability company whose charter documents required the unanimous consent of all independent
director or independent managers thereof before such corporation could consent to the institution
of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under
any applicable federal or state law relating to bankruptcy and (2) at least three years of
employment experience with one or more entities that provide, in the ordinary course of their
respective businesses, advisory, management or placement services to

IV-9

 

issuers of securitization or structured finance instruments, agreements or securities. Under
this clause (c), the term “control” means the possession, directly or indirectly, of the
power to direct or cause the direction of management, policies or activities of a Person, whether
through ownership of voting securities, by contract or otherwise. (ii) The operating agreement of
the Seller shall provide that: (A) the Seller’s Board of Directors shall not approve, or take any
other action to cause the filing of, a voluntary bankruptcy petition with respect to the Seller
unless the Independent Director shall approve the taking of such action in writing before the
taking of such action, and (B) such provision cannot be amended without the prior written consent
of the Independent Director;

     (d) The Independent Director shall not at any time serve as a trustee in bankruptcy for the
Seller, Cooper Tire, any Originator or any of their respective Affiliates;

     (e) The Seller shall conduct its affairs strictly in accordance with its organizational
documents and observe all necessary, appropriate and customary company formalities, including, but
not limited to, holding all regular and special members’ and board of managers’ meetings
appropriate to authorize all limited liability company action, keeping separate and accurate
minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken
or to be taken, and maintaining accurate and separate books, records and accounts, including, but
not limited to, payroll and intercompany transaction accounts;

     (f) Any employee, consultant or agent of the Seller will be compensated from the Seller’s
funds for services provided to the Seller, and to the extent that Seller shares the same officers
or other employees as Cooper Tire or any Originator (or any other Affiliate thereof), the salaries
and expenses relating to providing benefits to such officers and other employees shall be fairly
allocated among such entities, and each such entity shall bear its fair share of the salary and
benefit costs associated with such common officers and employees. The Seller will not engage any
agents other than its attorneys, auditors and other professionals, and a servicer and any other
agent contemplated by the Transaction Documents for the Receivables Pool, which servicer will be
fully compensated for its services by payment of the Servicing Fee, and a manager, which manager
will be fully compensated from the Seller’s funds;

     (g) The Seller will contract with the Servicer to perform for the Seller all operations
required on a daily basis to service the Receivables Pool. The Seller will pay the Servicer the
Servicing Fee pursuant hereto. Except as otherwise permitted by this Agreement, the Seller will not
incur any material indirect or overhead expenses for items shared with Cooper Tire or any
Originator (or any other Affiliate thereof) that are not reflected in the Servicing Fee. To the
extent, if any, that the Seller (or any Affiliate thereof) shares items of expenses not reflected
in the Servicing Fee or the manager’s fee, such as legal, auditing and other professional services,
such expenses will be allocated to the extent practical on the basis of actual use or the value of
services rendered, and otherwise on a basis reasonably related to the actual use or the value of
services rendered; it being understood that Cooper Tire, in its capacity as Servicer, shall pay all
expenses relating to the preparation, negotiation, execution and delivery of the Transaction
Documents, including legal, agency and other fees;

     (h) The Seller’s operating expenses will not be paid by Cooper Tire or any Originator or any
Affiliate thereof;

IV-10

 

     (i) The Seller will have its own separate stationery;

     (j) The Seller’s books and records will be maintained separately from those of Cooper Tire,
each Originator and any other Affiliate thereof and in a manner such that it will not be difficult
or costly to segregate, ascertain or otherwise identify the assets and liabilities of Seller;

     (k) All financial statements of Cooper Tire or any Originator or any Affiliate thereof that
are consolidated to include Seller will disclose that (i) the Seller’s sole business consists of
the purchase or acceptance through capital contributions of the Receivables and Related Rights from
the Originators and the subsequent retransfer of or granting of a security interest in such
Receivables and Related Rights to certain purchasers party to this Agreement, (ii) the Seller is a
separate legal entity with its own separate creditors who will be entitled, upon its liquidation,
to be satisfied out of the Seller’s assets prior to any assets or value in the Seller becoming
available to the Seller’s equity holders and (iii) the assets of the Seller are not available to
pay creditors of Cooper Tire or the Originators or any other Affiliates of Cooper Tire or the
Originators;

     (l) The Seller’s assets will be maintained in a manner that facilitates their identification
and segregation from those of Cooper Tire, the Originators or any Affiliates thereof;

     (m) The Seller will strictly observe corporate formalities in its dealings with Cooper Tire,
the Originators or any Affiliates thereof, and funds or other assets of the Seller will not be
commingled with those of Cooper Tire, the Originators or any Affiliates thereof except as permitted
by this Agreement in connection with servicing the Pool Receivables. The Seller shall not maintain
joint bank accounts or other depository accounts to which Cooper Tire or any Affiliate thereof
(other than Cooper Tire in its capacity as the Servicer) has independent access. The Seller is not
named, and has not entered into any agreement to be named, directly or indirectly, as a direct or
contingent beneficiary or loss payee on any insurance policy with respect to any loss relating to
the property of Cooper Tire, the Originators or any Subsidiaries or other Affiliates thereof. The
Seller will pay to the appropriate Affiliate the marginal increase or, in the absence of such
increase, the market amount of its portion of the premium payable with respect to any insurance
policy that covers the Seller and such Affiliate;

     (n) The Seller will maintain arm’s-length relationships with Cooper Tire, the Originators (and
any Affiliates thereof). Any Person that renders or otherwise furnishes services to the Seller will
be compensated by the Seller at market rates for such services it renders or otherwise furnishes to
the Seller. Neither the Seller on the one hand, nor Cooper Tire or any Originator, on the other
hand, will be or will hold itself out to be responsible for the debts of the other or the decisions
or actions respecting the daily business and affairs of the other. The Seller, Cooper Tire and the
Originators will immediately correct any known misrepresentation with respect to the foregoing, and
they will not operate or purport to operate as an integrated single economic unit with respect to
each other or in their dealing with any other entity;

     (o) The Seller shall have a separate area from Cooper Tire and each Originator for its
business (which may be located at the same address as such entities) and to the extent that any

IV-11

 

other such entity has offices in the same location, there shall be a fair and appropriate
allocation of overhead costs between them, and each shall bear its fair share of such expenses; and

     (p) To the extent not already covered in paragraphs (a) through (o) above, Seller shall comply
and/or act in accordance with the provisions of Section 6.4 of the Sale Agreement.

IV-12

 

EXHIBIT V

TERMINATION EVENTS

     Each of the following shall be a “Termination Event”:

     (a) (i) the Seller, Cooper Tire, any Originator or the Servicer shall fail to perform or
observe any term, covenant or agreement under this Agreement or any other Transaction Document and,
except as otherwise provided herein, such failure, solely to the extent capable of cure, shall
continue for 30 days after the earlier of any such Person’s knowledge or notice thereof or (ii) the
Seller or the Servicer shall fail to make when due any payment or deposit to be made by it under
this Agreement or any other Transaction Document and such failure shall remain unremedied for two
Business Days;

     (b) Cooper Tire (or any Affiliate thereof) shall fail to transfer to any successor Servicer,
when required, any rights pursuant to this Agreement that Cooper Tire (or such Affiliate) then has
as Servicer;

     (c) any representation or warranty made or deemed made by the Seller, the Servicer or any
Originator (or any of their respective officers) under or in connection with this Agreement or any
other Transaction Document, or any information or report delivered by the Seller, the Servicer or
any Originator pursuant to this Agreement or any other Transaction Document, shall prove to have
been incorrect or untrue in any material respect when made or deemed made or delivered;

     (d) the Seller or the Servicer shall fail to deliver any Information Package when due pursuant
to this Agreement, and such failure shall remain unremedied for two Business Days after the earlier
of such Person’s knowledge or notice thereof;

     (e) this Agreement or any purchase or reinvestment pursuant to this Agreement shall for any
reason: (i) cease to create, or the Purchased Interest shall for any reason cease to be, a valid
and enforceable first priority perfected undivided percentage ownership or security interest to the
extent of the Purchased Interest in each Pool Receivable, the Related Security and Collections with
respect thereto, free and clear of any Adverse Claim, or (ii) cease to create with respect to the
Pool Assets, or the interest of the Administrator (for the benefit of the Purchasers) with respect
to such Pool Assets shall cease to be, a valid and enforceable first priority perfected security
interest, free and clear of any Adverse Claim;

     (f) the Seller, Cooper Tire, the Servicer or any Originator shall generally not pay its debts
as such debts become due, shall admit in writing its inability to pay its debts generally, or shall
make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against the Seller, Cooper Tire, the Servicer or any Originator seeking to adjudicate it a bankrupt
or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or
the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted against it (but
not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of

V - 1

 

60 days, or any of the actions sought in such proceeding (including the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other similar official for,
it or for any substantial part of its property) shall occur; or the Seller, Cooper Tire, the
Servicer or any Originator shall take any corporate action to authorize any of the actions set
forth above in this paragraph;

     (g) (i) the (A) Default Ratio shall exceed 2.0%, (B) Delinquency Ratio shall exceed 4.0%, (ii)
the average for three consecutive calendar months of: (A) the Default Ratio shall exceed 1.5%, (B)
the Delinquency Ratio shall exceed 3.0%, or (C) the Dilution Ratio shall exceed 10.0% or (iii)
Days’ Sales Outstanding exceeds 68 days;

     (h) a Change in Control shall occur;

     (i) the Purchased Interest shall exceed 100% for two (2) Business Days after the earlier of
the Seller’s or Servicer’s knowledge or notice thereof;

     (j) (i) the Seller, Cooper Tire or any of its Subsidiaries shall fail to pay any principal of
or premium or interest on any of its Debt that is outstanding in a principal amount of at least
$10,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement, mortgage, indenture or instrument
relating to such Debt (whether or not such failure shall have been waived under the related
agreement); (ii) any other event shall occur or condition shall exist under any agreement,
mortgage, indenture or instrument relating to any such Debt (as referred to in clause (i)
of this subsection (j)) and shall continue after the applicable grace period, if any,
specified in such agreement, mortgage, indenture or instrument (whether or not such failure shall
have been waived under the related agreement), if the effect of such event or condition is to give
the applicable debtholders the right (whether acted upon or not) to accelerate the maturity of such
Debt (as referred to in clause (i) of this subsection (j)), or (iii) any such Debt
shall be declared to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case before the stated maturity
thereof;

     (k) either the Internal Revenue Service or the Pension Benefit Guaranty Corporation shall have
filed one or more notices of lien asserting a claim or claims pursuant to the Internal Revenue
Code, or ERISA, as applicable, against the assets of Seller, any Originator, Cooper Tire or any
ERISA Affiliate;

     (l) Cooper Tire shall fail to perform any of its obligations under the Performance Guaranty;
or

     (m) Cooper Tire or any of its respective Subsidiaries shall breach, default on or fail to
comply with the covenant set forth in Section 5.1 (titled “Percentage of Consolidated Indebtedness
to Consolidated Capitalization) of that certain Amended and Restated Credit Agreement, dated as of
September 1, 2000, among Cooper Tire, as borrower thereunder, the lenders from time to time
thereto, PNC as the agent for the lenders thereunder, as such agreement has been amended, modified,
waived or supplemented through the Closing Date, and without

V - 2

 

giving effect to any future amendment, modification, waiver or supplement thereunder and
whether or not waived unless PNC has given its affirmative consent thereto, as agent thereunder.

V - 3

 

SCHEDULE I

CREDIT AND COLLECTION POLICY

Schedule I - 1

 

SCHEDULE II

LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS

Schedule II - 1

 

SCHEDULE III

TRADE NAMES

Cooper Tires

Oliver

Schedule III - 1

 

SCHEDULE IV

ACTIONS AND PROCEEDINGS

None

Schedule IV - 1

 

ANNEX A

FORM OF INFORMATION PACKAGE

Annex A-1

 

ANNEX B

FORM OF PURCHASE NOTICE

Annex B-1

 

ANNEX C

FORM OF ASSUMPTION AGREEMENT

Dated as of [                     ___, 20___]

     THIS ASSUMPTION AGREEMENT (this “AGREEMENT”), dated as of [                     ___,                     ], is among
COOPER RECEIVABLES LLC (the “Seller”), [                    ], as purchaser (the “[                    ] Conduit Purchaser”),
[                    ], as the related committed purchaser (the “[                    ] Related Committed Purchaser” and
together with the Conduit Purchaser, the “[                    ] Purchasers”), and [                    ], as agent for the
[                    ] Purchasers (the “[                    ] Purchaser Agent” and together with the [                    ] Purchasers, the
“[                    ] Purchaser Group”).

BACKGROUND

     The Seller and various others are parties to that certain Receivables Purchase Agreement dated
as of August 30, 2006 (as amended, restated, supplemented or otherwise modified through the date
hereof, the “Receivables Purchase Agreement”). Capitalized terms used and not otherwise defined
herein have the respective meaning assigned to such terms in the Receivables Purchase Agreement.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     SECTION 1. This letter constitutes an Assumption Agreement pursuant to Section 1.2(e)
of the Receivables Purchase Agreement. The Seller desires [the [                    ] Purchasers] [the [                    ]
Related Committed Purchaser] to [become Purchasers under] [increase its existing Commitment under]
the Receivables Purchase Agreement and upon the terms and subject to the conditions set forth in
the Receivables Purchase Agreement, the [                    ] Purchasers agree to [become Purchasers
thereunder] [increase its Commitment in an amount equal to the amount set forth as the “Commitment”
under the signature of such [                    ] Related Committed Purchaser hereto].

     Seller hereby represents and warrants to the [                    ] Purchasers as of the date hereof, as
follows:

     (i) the representations and warranties of the Seller contained in Exhibit III of the
Receivables Purchase Agreement are true and correct in all material respects on and as the date of
such purchase or reinvestment as though made on and as of such date (except for representations and
warranties which apply as to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such purchase or
reinvestment, that constitutes a Termination Event or an Unmatured Termination Event; and

     (iii) the Facility Termination Date has not occurred.

					
	 	 	 	 	 
	 
	 	Annex C-2
	 	Cooper Receivables Purchase Agreement
	 
	 	 	 	Form of Assumption Agreement

 

 

     SECTION 2. Upon execution and delivery of this Agreement by the Seller and each member of the
[                    ] Purchaser Group, satisfaction of the other conditions to assignment specified in
Section 1.2(e) of the Receivables Purchase Agreement (including the written consent of the
Administrator and each Purchaser Agent) and receipt by the Administrator and Seller of counterparts
of this Agreement (whether by facsimile or otherwise) executed by each of the parties hereto, [the
[                    ] Purchasers shall become a party to, and have the rights and obligations of Purchasers
under, the Receivables Purchase Agreement] [the [                    ] Related Committed Purchaser shall increase
its Commitment in the amount set forth as the “Commitment” under the signature of the [                    ]
Related Committed Purchaser, hereto].

     SECTION 3. Each party hereto hereby covenants and agrees that it will not institute against,
or join any other Person in instituting against, any Conduit Purchaser, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any
federal or state bankruptcy or similar law, for one year and one day after the latest maturing Note
issued by such Conduit Purchaser is paid in full. The covenant contained in this paragraph shall
survive any termination of the Receivables Purchase Agreement.

     SECTION 4. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR
PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL
ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. This Agreement may
not be amended, supplemented or waived except pursuant to a writing signed by the party to be
charged. This Agreement may be executed in counterparts, and by the different parties on different
counterparts, each of which shall constitute an original, but all together shall constitute one and
the same agreement.

(continued on following page)

					
	 	 	 	 	 
	 
	 	Annex C-3
	 	Cooper Receivables Purchase Agreement
	 
	 	 	 	Form of Assumption Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized
officers as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	[                    ], as a Conduit Purchaser	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name Printed:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[                    ], as a Related Committed Purchaser	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name Printed:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 	 	 
	 	 	[Commitment]	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[                                        ], as Purchaser Agent for [                    ]	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 
	 

	 	 	 	Name Printed:
	 	 

	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	[Address]	 	 	 	 	 	 

Annex C-1

 

 

	 	 	 	 	 
	COOPER RECEIVABLES LLC, as Seller	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	Name Printed:

	 	 

	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Consented and Agreed:	 	 
	 
	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION, as Administrator
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name Printed:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 
	 
	 	 	 	 
	Address:

	 	PNC Bank, National Association	 	 
	 

	 	One PNC Plaza	 	 
	 

	 	249 Fifth Avenue	 	 
	 

	 	Pittsburgh, Pennsylvania 15222-2707	 	 
	 
	 	 	 	 
	[THE PURCHASER AGENTS]	 	 
	 
	 	 	 	 
	By:
	 	 	 	 
	 

	 	 	 	 
	Name Printed:
	 	 	 	 
	 

	 	 	 	 
	Title:
	 	 	 	 
	 

	 	 	 	 

[Address]

Annex C-2

 

 

ANNEX D

FORM OF TRANSFER SUPPLEMENT

Dated as of [                     ___, 20___]

Section 1.

	 	 	 	 	 
	Commitment assigned:
	 	$	                    	 
	Assignor’s remaining Commitment:
	 	$	                    	 
	Capital allocable to Commitment assigned:
	 	$	                    	 
	Assignor’s remaining Capital:
	 	$	                    	 
	Discount (if any) allocable to
Capital assigned:
	 	$	                    	 
	Discount(if any) allocable to Assignor’s
remaining Capital:
	 	$	                    	 

Section 2.

     Effective Date of this Transfer Supplement: [                    ]

     Upon execution and delivery of this Transfer Supplement by transferee and transferor and the
satisfaction of the other conditions to assignment specified in Section 6.3(c) of the
Receivables Purchase Agreement (as defined below), from and after the effective date specified
above, the transferee shall become a party to, and have the rights and obligations of a Committed
Purchaser under, the Receivables Purchase Agreement, dated as of August 30, 2006 (as amended,
restated, supplemented or otherwise modified through the date hereof, the “Receivables Purchase
Agreement”), among Cooper Receivables LLC, as Seller, Cooper Tire & Rubber Company, LLC, as initial
Servicer, the various Purchasers and Purchaser Groups from time to time party thereto, and PNC
Bank, National Association, as Administrator for each Purchaser Group.

Annex D-1

 

TABLE OF CONTENTS

(continued)

Page

ASSIGNOR: [                    ], as a Related Committed Purchaser

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

ASSIGNEE: [                    ], as a Purchasing Related Committed Purchaser

	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

                    [Address]

Accepted as of date first above
written:

[                    ], as Purchaser Agent for

the [           ] Purchaser Group

	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Title:
	 	 

	 	 
	 

	 	 	 	 

	 	 

[Accepted as of the date first above written]:1

COOPER RECEIVABLES LLC

	 	 	 	 	 
	By:
	 	 	 	 
	Name:

	 	 

	 	 
	Title:

	 	 

	 	 
	 

	 	 

	 	 

[Address]

 

			
	1	 	Consent only required prior to the occurrence
of a Termination Event (such consent not to be unreasonably withheld).

-2-

 

ANNEX E

FORM OF PAYDOWN NOTICE

Annex G-1

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