Document:

Credit Agreement between registrant and LaSalle Bank

 Exhibit 10.(i) 
  
 LOAN AGREEMENT 
  
 This LOAN AGREEMENT dated as of December 16, 2005 (the “Agreement”), is executed by and between NEOGEN CORPORATION, a Michigan
corporation (the “Borrower”), which has its chief executive office located at 620 Lesher Place, Lansing, Michigan 48912, and LASALLE BANK MIDWEST NATIONAL ASSOCIATION, a national banking association (the “Bank”), whose address is
124 West Allegan Street, P.O. Box 40766, Lansing, Michigan 48901-7966. 
  
 R E C I T A L S: 
  
 A. The Borrower desires to
borrow funds and obtain other financial accommodations from the Bank. 
  
 B. Pursuant to the Borrower’s request, the Bank is willing to extend such financial accommodations to the Borrower under the terms and conditions set forth herein. 
  
 NOW THEREFORE, in consideration of the premises, and the mutual covenants and agreements set forth herein, the Borrower
agrees to borrow from the Bank, and the Bank agrees to lend to the Borrower, subject to and upon the following terms and conditions: 
  
 A G R E E M E N T S: 
  
 Section 1 DEFINITIONS. 
  
 1.1 Defined Terms. For the purposes of this Agreement, the following capitalized words and phrases shall have the meanings set forth below.

  
 “Affiliate” of any Person shall mean
(a) any other Person which, directly or indirectly, controls or is controlled by or is under common control with such Person, (b) any officer or director of such Person, and (c) with respect to the Bank, any entity administered or
managed by the Bank, or an Affiliate or investment advisor thereof and which is engaged in making, purchasing, holding or otherwise investing in commercial loans. A Person shall be deemed to be “controlled by” any other Person if such
Person possesses, directly or indirectly, power to direct or cause the direction of the management and policies of such Person whether by contract, ownership of voting securities, membership interests or otherwise. 
  
 “Bank Product Agreements” shall mean those certain
agreements entered into from time to time by the Borrower or any Subsidiary with the Bank or any Affiliate of the Bank concerning Bank Products. 
  
 “Bank Product Obligations” shall mean all obligations, liabilities, contingent reimbursement obligations, fees, and expenses owing by the
Borrower or any Subsidiary to the Bank or any Affiliate of the Bank pursuant to or evidenced by the Bank Product Agreements and irrespective of whether for the payment of money, whether direct or indirect, absolute or contingent, due or to become
due, now existing or hereafter arising. 
  

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 “Bank Products” shall mean any service or facility extended to the Borrower or any
Subsidiary by the Bank or any Affiliate of the Bank, including: (a) credit cards, (b) credit card processing services, (c) debit cards, (d) purchase cards, (e) ACH Transactions, (f) cash management, including controlled
disbursement, accounts or services, or (g) Hedging Agreements. 
  
 “Bankruptcy Code” shall mean the United States Bankruptcy Code, as now existing or hereafter amended. 
  
 “Business Day” shall mean any day other than a Saturday, Sunday or a legal holiday on which banks are authorized or required to be closed
for the conduct of commercial banking business in Lansing, Michigan. 
  
 “Capital Expenditures” shall mean all expenditures (including Capitalized Lease Obligations) which, in accordance with GAAP, would be required to be capitalized and shown on the consolidated balance sheet of the Borrower,
but excluding expenditures made in connection with the replacement, substitution or restoration of assets to the extent financed (i) from insurance proceeds (or other similar recoveries) paid on account of the loss of or damage to the assets
being replaced or restored or (ii) with awards of compensation arising from the taking by eminent domain or condemnation of the assets being replaced. 
  
 “Capital Lease” shall mean, as to any Person, a lease of any interest in any kind of property or asset, whether real, personal or mixed,
or tangible or intangible, by such Person, as lessee, that is, or should be, in accordance with Financial Accounting Standards Board Statement No. 13, as amended from time to time, or, if such statement is not then in effect, such statement of
GAAP as may be applicable, recorded as a “capital lease” on the financial statements of such Person prepared in accordance with GAAP. 
  
 “Capital Securities” shall mean, with respect to any Person, all shares, interests, participations or other equivalents (however
designated, whether voting or non-voting) of such Person’s capital, whether now outstanding or issued or acquired after the date hereof, including common shares, preferred shares, membership interests in a limited liability company, limited or
general partnership interests in a partnership or any other equivalent of such ownership interest. 
  
 “Capitalized Lease Obligations” shall mean, as to any Person, all rental obligations of such Person, as lessee under a Capital Lease
which are or will be required to be capitalized on the books of such Person. 
  
 “Cash Equivalent Investment” shall mean, at any time, (a) any evidence of Debt, maturing not more than one year after such time, issued or guaranteed by the United States government or any agency
thereof, (b) commercial paper, maturing not more than one year from the date of issue, or corporate demand notes, in each case (unless issued by the Bank or its holding company) rated at least A-l by Standard & Poor’s Ratings
Services, a division of The McGraw-Hill Companies, Inc. or P-l by Moody’s Investors Service, Inc., (c) any certificate of deposit, time deposit or banker’s acceptance, maturing not more than one year after such time, or any overnight
Federal Funds transaction that is issued or sold by the Bank or its holding company (or by a commercial banking institution that is a member of the Federal Reserve System and has 
  

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 a combined capital and surplus and undivided profits of not less than $500,000,000), (d) any repurchase agreement
entered into with the Bank, or other commercial banking institution of the nature referred to in clause (c), which (i) is secured by a fully perfected security interest in any obligation of the type described in any of clauses (a) through
(c) above, and (ii) has a market value at the time such repurchase agreement is entered into of not less than 100% of the repurchase obligation of the Bank, or other commercial banking institution, thereunder, (e) money market
accounts or mutual funds which invest exclusively in assets satisfying the foregoing requirements, and (f) other short term liquid investments approved in writing by the Bank. 
  
 “Contingent Liability” and “Contingent Liabilities” shall mean, respectively, each
obligation and liability of the Borrower and all such obligations and liabilities of the Borrower incurred pursuant to any agreement, undertaking or arrangement by which the Borrower: (a) guarantees, endorses or otherwise becomes or is
contingently liable upon (by direct or indirect agreement, contingent or otherwise, to provide funds for payment, to supply funds to, or otherwise to invest in, a debtor, or otherwise to assure a creditor against loss) the indebtedness, dividend,
obligation or other liability of any other Person in any manner (other than by endorsement of instruments in the course of collection), including without limitation, any indebtedness, dividend or other obligation which may be issued or incurred at
some future time; (b) guarantees the payment of dividends or other distributions upon the shares or ownership interest of any other Person; (c) undertakes or agrees (whether contingently or otherwise): (i) to purchase, repurchase, or
otherwise acquire any indebtedness, obligation or liability of any other Person or any property or assets constituting security therefor, (ii) to advance or provide funds for the payment or discharge of any indebtedness, obligation or liability
of any other Person (whether in the form of loans, advances, stock purchases, capital contributions or otherwise), or to maintain solvency, assets, level of income, working capital or other financial condition of any other Person, or (iii) to
make payment to any other Person other than for value received; (d) agrees to lease property or to purchase securities, property or services from such other Person with the purpose or intent of assuring the owner of such indebtedness or
obligation of the ability of such other Person to make payment of the indebtedness or obligation; (e) to induce the issuance of, or in connection with the issuance of, any letter of credit for the benefit of such other Person; or
(f) undertakes or agrees otherwise to assure a creditor against loss. The amount of any Contingent Liability shall (subject to any limitation set forth herein) be deemed to be the outstanding principal amount (or maximum permitted principal
amount, if larger) of the indebtedness, obligation or other liability guaranteed or supported thereby. 
  
 “Daily Rate” shall mean an interest rate equal to LIBOR for a one month Interest Period, as determined by the Bank for each calendar day.
The Daily Rate for any day that is not a Business Day will be the Daily Rate for the most recent preceding Business Day. 
  
 “Debt” shall mean, as to any Person, without duplication, (a) all indebtedness of such Person; (b) all borrowed money of such
Person (including principal, interest, fees and charges), whether or not evidenced by bonds, debentures, notes or similar instruments; (c) all obligations to pay the deferred purchase price of property or services; (d) all obligations,
contingent or otherwise, with respect to the maximum face amount of all letters of credit (whether or not drawn), bankers’ acceptances and similar obligations issued for the account of 
  

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 such Person (including the letters of credit), and all unpaid drawings in respect of such letters of credit,
bankers’ acceptances and similar obligations; (e) all indebtedness secured by any Lien on any property owned by such Person, whether or not such indebtedness has been assumed by such Person (provided, however, if such Person has not
assumed or otherwise become liable in respect of such indebtedness, such indebtedness shall be deemed to be in an amount equal to the fair market value of the property subject to such Lien at the time of determination); (f) the aggregate amount
of all Capitalized Lease Obligations of such Person; (g) all Contingent Liabilities of such Person, whether or not reflected on its balance sheet; (h) all Hedging Obligations of such Person; (i) all Debt of any partnership of which
such Person is a general partner; and (j) all monetary obligations of such Person under (i) a so-called synthetic, off-balance sheet or tax retention lease, or (ii) an agreement for the use or possession of property creating
obligations that do not appear on the balance sheet of such Person but which, upon the insolvency or bankruptcy of such Person, would be characterized as the indebtedness of such Person (without regard to accounting treatment). Notwithstanding the
foregoing, Debt shall not include trade payables, and accrued expenses incurred by such Person in accordance with customary practices and in the ordinary course of business of such Person and for purposes of this Agreement Debt shall not include the
Obligations of the Borrower under this Agreement and the other Loan Documents. 
  
 “Debt Service Coverage Ratio” means the ratio of Net Cash Flow to Debt Service Expense, for the four fiscal quarters preceding the end of the current fiscal period. 
  
 “Debt Service Expense” means Interest Charges, plus the
current portion of any long-term debt, plus the portion attributable to principal of all payments on Capital Leases (computed at the implicit rate, if known, or 10% per annum otherwise), computed in accordance with GAAP. 
  
 “Default Rate” shall mean a per annum rate of interest equal
to the Prime Rate plus two percent (2%). 
  
 “Depreciation” shall mean the total amounts added to depreciation, amortization, obsolescence, valuation and other proper reserves, as reflected on the Borrower’s financial statements and determined in accordance with
GAAP. 
  
 “EBITDA” means, for any period, the sum
for such period of: (a) Net Income, plus (b) Interest Charges, plus (c) federal and state income taxes as determined in accordance with GAAP, plus (d) Depreciation, plus (e) all other non-cash charges, minus (f) any
items of gain which are extraordinary items as defined by GAAP, including, without limitation, that portion of net income arising out of the sale of assets outside of the ordinary course of business, minus (g) income or loss attributable to
equity in any affiliated corporation or subsidiary, in each case to the extent included in determining Net Income for such period. 
  
 “Employee Plan” includes any pension, stock bonus, employee stock ownership plan, retirement, profit sharing, deferred compensation,
stock option, bonus or other incentive plan, whether qualified or nonqualified, or any disability, medical, dental or other health plan, life insurance or other death benefit plan, vacation benefit plan, severance plan or other employee benefit plan
or arrangement, including, without limitation, those pension, profit-sharing and retirement plans of the Borrower described from time to time in the financial statements of the 
  

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 Borrower and any pension plan, welfare plan, Defined Benefit Pension Plans (as defined in ERISA) or any multi-employer
plan, maintained or administered by the Borrower or to which the Borrower is a party or may have any liability or by which the Borrower is bound. 
  
 “Environmental Laws” shall mean all present or future federal, state or local laws, statutes, common law duties, rules, regulations,
ordinances and codes, together with all administrative or judicial orders, consent agreements, directed duties, requests, licenses, authorizations and permits of, and agreements with, any governmental authority, in each case relating to any matter
arising out of or relating to public health and safety, or pollution or protection of the environment or workplace, including any of the foregoing relating to the presence, use, production, generation, handling, transport, treatment, storage,
disposal, distribution, discharge, emission, release, threatened release, control or cleanup of any Hazardous Substance. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended from time to time. 
  
 “Event of Default” shall mean any of the events or
conditions which are set forth in Section 10 hereof. 
  
 “Funded Debt” shall mean, as of any date, the sum of the following (without duplication): (i) all Obligations of the Borrower under this Agreement and the other Loan Documents and all other Debt of the Borrower to Bank
as of such date (ii) all other Debt and liabilities of the Borrower which would be classified as “funded indebtedness” or “long-term indebtedness” on a balance sheet of the Borrower prepared as of such date in accordance
with generally accepted accounting principles, (iii) all Debt and liabilities, whether secured or unsecured, of Borrower, having a final maturity (or which is renewable or extendable at the option of the Borrower for a period ending) more than
one year after the date of creation thereof, notwithstanding the fact that payments in respect thereof (whether installment, serial maturity or sinking fund payments, or otherwise) are required to be made by the Borrower less than one year after the
date of the creation thereof and notwithstanding the fact that any amount thereof is at the time included also in Current Liabilities of the Borrower, (iv) all Debt and liabilities of the Borrower outstanding under a revolving credit or similar
agreement providing for borrowings (and renewals and extensions thereof) over a period of more than one year, notwithstanding the fact that any such Debt and liabilities are created within one year of the expiration of such agreement, (v) the
present value of all obligations in respect of Capital Leases of the Borrower, and (vi) all obligations under Guaranties made by Borrower.” 
  
 “GAAP” shall mean generally accepted accounting principles set forth from time to time in the opinions and pronouncements of the
Accounting Principles Board and the American Institute of Certified Public Accountants and statements and pronouncements of the Financial Accounting Standards Board (or agencies with similar functions of comparable stature and authority within the
U.S. accounting profession), which are applicable to the circumstances as of the date of determination, provided, however, that interim financial statements or reports shall be deemed in compliance with GAAP despite the absence of footnotes and
fiscal year-end adjustments as required by GAAP. 
  

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 “Hazardous Substances” shall mean (a) any petroleum or petroleum products,
radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, dielectric fluid containing levels of polychlorinated biphenyls, radon gas and mold; (b) any chemicals, materials, pollutant or
substances defined as or included in the definition of “hazardous substances”, “hazardous waste”, “hazardous materials”, “extremely hazardous substances”, “restricted hazardous waste”, “toxic
substances”, “toxic pollutants”, “contaminants”, “pollutants” or words of similar import, under any applicable Environmental Law; and (c) any other chemical, material or substance, the exposure to, or release
of which is prohibited, limited or regulated by any governmental authority or for which any duty or standard of care is imposed pursuant to, any Environmental Law. 
  
 “Hedging Agreements” shall mean any interest rate, currency or commodity swap agreement, cap agreement or
collar agreement, and any other agreement or arrangement designed to protect a Person against fluctuations in interest rates, currency exchange rates or commodity prices. 
  
 “Hedging Obligation” shall mean, with respect to any Person, any liability of such Person under any Hedging
Agreement. 
  
 “Indemnified Party” and
“Indemnified Parties” shall mean, respectively, each of the Bank and any parent corporations, Affiliate or Subsidiary of the Bank, and each of their respective officers, directors, employees, attorneys and agents, and all of such
parties and entities. 
  
 “Intellectual Property”
shall mean the collective reference to all rights, priorities and privileges relating to intellectual property, whether arising under United States, multinational or foreign laws or otherwise, including copyrights, patents, service marks and
trademarks, and all registrations and applications for registration therefor and all licensees thereof, trade names, domain names, technology, know-how and processes, and all rights to sue at law or in equity for any infringement or other impairment
thereof, including the right to receive all proceeds and damages therefrom. 
  
 “Interest Charges” shall mean, for any period, the sum of: (a) all interest, charges and related expenses payable with respect to that fiscal period to a lender in connection with borrowed money
or the deferred purchase price of assets that are treated as interest in accordance with GAAP, plus (b) the portion of Capitalized Lease Obligations with respect to that fiscal period that should be treated as interest in accordance with
GAAP, plus (c) all charges paid or payable (without duplication) during that period with respect to any Hedging Agreements. 
  
 “Interest Period” shall mean successive one month periods, beginning and ending as provided in this Agreement. 
  
 “Investment” shall mean, with respect to any Person, any
investment in another Person, whether by acquisition of any debt or equity security, by making any loan or advance, by becoming obligated with respect to a Contingent Liability in respect of obligations of such other Person (other than travel and
similar advances to employees in the ordinary course of business). 
  

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 “Liabilities” shall mean at all times all liabilities of the Borrower that would be
shown as such on a balance sheet of the Borrower prepared in accordance with GAAP. 
  
 “LIBOR” shall mean a rate of interest equal to (a) the per annum rate of interest at which United States dollar deposits for a period equal to the relevant Interest Period are offered in the
London Interbank Eurodollar market at 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period (or three Business Days prior to the commencement of such Interest Period if banks in London, England were not open
and dealing in offshore United States dollars on such second preceding Business Day), as displayed in the Bloomberg Financial Markets system (or other authoritative source selected by the Bank in its sole discretion), divided by (b) a number
determined by subtracting from 1.00 the then stated maximum reserve percentage for determining reserves to be maintained by member banks of the Federal Reserve System for Eurocurrency funding or liabilities as defined in Regulation D (or any
successor category of liabilities under Regulation D), or as LIBOR is otherwise determined by the Bank in its sole and absolute discretion. The Bank’s determination of LIBOR shall be conclusive, absent manifest error. 
  
 “Lien” shall mean, with respect to any Person, any interest
granted by such Person in any real or personal property, asset or other right owned or being purchased or acquired by such Person (including, without limitation, an interest in respect of a Capital Lease) which secures payment or performance of any
obligation and shall include any mortgage, lien, encumbrance, title retention lien, charge or other security interest of any kind, whether arising by contract, as a matter of law, by judicial process or otherwise. 
  
 “Loans” shall mean, collectively, all Revolving Loans made
by the Bank to the Borrower, under and pursuant to this Agreement. 
  
 “Loan Documents” shall mean each of the agreements, documents, instruments and certificates set forth in Section 3.1 hereof, and any and all such other instruments, documents, certificates and agreements from
time to time executed and delivered by the Borrower for the benefit of the Bank pursuant to any of the foregoing, and all amendments, restatements, supplements and other modifications thereto. 
  
 “Material Adverse Effect” shall mean (a) a material
adverse change in, or a material adverse effect upon, the assets, business, properties, prospects, condition (financial or otherwise) or results of operations of the Borrower taken as a whole, (b) a material impairment of the ability of the
Borrower to perform any of the Obligations under any of the Loan Documents, or (c) a material adverse effect on (i) the legality, validity, binding effect or enforceability against the Borrower of any of the Loan Documents or (ii) the
rights or remedies of the Bank under any Loan Document. 
  
 “Net Cash Flow” means EBITDA minus dividends or other distributions minus provision for federal, state and local income taxes minus Capital Expenditures which are not financed by long term debt. 
  

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 “Net Income” means, with respect to any period, the amount shown opposite the caption
“Net Income” or a similar caption on financial statements prepared in accordance with GAAP. 
  
 “Non-Excluded Taxes” shall have the meaning set forth in Section 2.5(a) hereof. 
  
 “Note” shall mean the Revolving Note. 
  
 “Obligations” shall mean the Loans, as evidenced by the
Note, all interest accrued thereon (including interest which would be payable as post-petition in connection with any bankruptcy or similar proceeding, whether or not permitted as a claim thereunder), any fees due the Bank hereunder, any expenses
incurred by the Bank hereunder and any and all other liabilities and obligations of the Borrower to the Bank under this Agreement and any other Loan Document, including any reimbursement obligations of the Borrower in respect of letters of credit
and surety bonds, all Hedging Obligations of the Borrower which are owed to the Bank or any Affiliate of the Bank, and all Bank Product Obligations of the Borrower, all 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 renewals or extensions thereof. 
  
 “Obligor” shall mean the Borrower, any guarantor, accommodation endorser, third party pledgor, or any other party liable with respect to
the Obligations. 
  
 “Organizational Identification
Number” means, with respect to Borrower, the organizational identification number assigned to Borrower by the applicable governmental unit or agency of the jurisdiction of organization of the Borrower. 
  
 “Other Taxes” shall mean any present or future stamp or
documentary taxes or any other excise or property taxes, charges or similar levies which arise from the execution, delivery, enforcement or registration of, or otherwise with respect to, this Agreement or any of the other Loan Documents. 

 
 “Permitted Liens” shall mean (a) Liens for
Taxes, assessments or other governmental charges not at the time delinquent or thereafter payable without penalty or being contested in good faith by appropriate proceedings and, in each case, for which it maintains adequate reserves in accordance
with GAAP and in respect of which no Lien has been filed; (b) Liens arising in the ordinary course of business (such as (i) Liens of carriers, warehousemen, mechanics and materialmen and other similar Liens imposed by law, and
(ii) Liens in the form of deposits or pledges incurred in connection with worker’s compensation, unemployment compensation and other types of social security (excluding Liens arising under ERISA) or in connection with surety bonds, bids,
performance bonds and similar obligations) for sums not overdue or being contested in good faith by appropriate proceedings and not involving any advances or borrowed money or the deferred purchase price of property or services, which do not in the
aggregate materially detract from the value of the property or assets of the Borrower or materially impair the use thereof in the operation of the Borrower’s business and, in each case, for which it maintains adequate reserves in accordance
with GAAP and in respect of which no Lien has been filed; (c) attachments, appeal bonds, judgments and other similar Liens, for sums not 
  

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 exceeding at any time Two Hundred Thousand and 00/100 Dollars ($200,000) in the aggregate, arising in connection with
court proceedings; (d) easements, rights of way, restrictions, minor defects or irregularities in title and other similar Liens not interfering in any material respect with the ordinary conduct of the business of the Borrower; (e) subject
to the limitation set forth in Section 8.1(d), if any, Liens arising in connection with Capitalized Lease Obligations (and attaching only to the property being leased); (g) subject to the limitation set forth in
Section 8.1(e), Liens that constitute purchase money security interests on any property securing Debt incurred for the purpose of financing all or any part of the cost of acquiring such property, provided that any such Lien
attaches to such property within twenty (20) days of the acquisition thereof and attaches solely to the property so acquired; and (h) any matter discussed in this agreement or any dispute that is not expected to have a Material Adverse
Effect. 
  
 “Person” shall mean any natural
person, partnership, limited liability company, corporation, trust, joint venture, joint stock company, association, unincorporated organization, government or agency or political subdivision thereof, or other entity, whether acting in an
individual, fiduciary or other capacity. 
  
 “Prime
Loan” or “Prime Loans” shall mean that portion, and collectively, those portions of the aggregate outstanding principal balance of the Loans that bear interest at the Prime Rate. 
  
 “Prime Rate” shall mean the floating per annum rate of
interest which at any time, and from time to time, shall be most recently announced by the Bank as its Prime Rate, which is not intended to be the Bank’s lowest or most favorable rate of interest at any one time. The effective date of any
change in the Prime Rate shall for purposes hereof be the date the Prime Rate is changed by the Bank. The Bank shall not be obligated to give notice of any change in the Prime Rate. 
  
 “Regulatory Change” shall mean the introduction of, or any change in any applicable law, treaty, rule,
regulation or guideline or in the interpretation or administration thereof by any governmental authority or any central bank or other fiscal, monetary or other authority having jurisdiction over the Bank or its lending office. 
  
 “Revolving Interest Rate” shall mean the Trailing Average
LIBOR Rate. 
  
 “Revolving Loan” and
“Revolving Loans” shall mean, respectively, each direct advance and the aggregate of all such direct advances and readvances made by the Bank to the Borrower under and pursuant to this Agreement, as set forth in
Section 2.1 of this Agreement. 
  
 “Revolving
Loan Commitment” shall mean Seventeen Million Five Hundred Thousand and 00/100 Dollars ($17,500,000.00). 
  
 “Revolving Loan Maturity Date” shall mean December 1, 2007, unless extended by the Bank pursuant to any modification, extension or
renewal note executed by the Borrower and accepted by the Bank in its sole and absolute discretion in substitution for the Revolving Note. 
  

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 “Revolving Note” shall mean a revolving note in the form prepared by and acceptable to
the Bank, dated as of the date hereof, in the amount of the Revolving Loan Commitment and maturing on the Revolving Loan Maturity Date, duly executed by the Borrower and payable to the order of the Bank, together with any and all renewal, extension,
modification or replacement notes executed by the Borrower and delivered to the Bank and given in substitution therefor. 
  
 “Subordinated Debt” shall mean that portion of the Debt of the Borrower which is subordinated to the Obligations in a manner satisfactory
to the Bank, including right and time of payment of principal and interest. 
  
 “Subsidiary” and “Subsidiaries” shall mean, respectively, with respect to any Person, each and all such corporations, partnerships, limited partnerships, limited liability companies,
limited liability partnerships, joint ventures or other entities of which or in which such Person owns, directly or indirectly, such number of outstanding Capital Securities as have more than fifty percent (50.00%) of the ordinary voting power
for the election of directors or other managers of such corporation, partnership, limited liability company or other entity. Unless the context otherwise requires, each reference to Subsidiaries herein shall be a reference to Subsidiaries of the
Borrower. 
  
 “Tangible Assets” shall mean the
total of all assets appearing on a balance sheet of the Borrower prepared in accordance with GAAP (with Inventory being valued at the lower of cost or market), after deducting all proper reserves (including reserves for Depreciation) minus the sum
of (i) goodwill, patents, trademarks, deposits, deferred charges and other personal property which is classified as intangible property in accordance with GAAP, and (ii) any amounts due from shareholders, Affiliates, officers or employees
of the Borrower. 
  
 “Tangible Net Worth” shall
mean at any time the total of Tangible Assets minus Liabilities plus Subordinated Debt. 
  
 “Taxes” shall mean any and all present and future taxes, duties, levies, imposts, deductions, assessments, charges or withholdings, and
any and all liabilities (including interest and penalties and other additions to taxes) with respect to the foregoing. 
  
 “Total Debt” shall mean all Debt of the Borrower, determined on a consolidated basis, excluding (i) Contingent Liabilities (except
to the extent constituting Contingent Liabilities in respect of the Debt of a Person other than the Borrower or any Subsidiaries), and (ii) Hedging Obligations. 
  
 “Trailing Average LIBOR” shall mean a floating per annum rate of interest equal to the average of the
thirty (30) most recent Daily Rates, adjusted each Business Day. Trailing Average LIBOR for any day that is not a Business Day shall be Trailing Average LIBOR for the most recent preceding Business Day. 
  
 “Trailing Average LIBOR Loan” or “Trailing Average
LIBOR Loans” shall mean that portion, and collectively those portions, of the aggregate outstanding principal balance of the Revolving Loans that bear interest at the Trailing Average LIBOR Rate. 
  

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 “Trailing Average LIBOR Rate” shall mean a per annum rate of interest equal to Trailing
Average LIBOR, plus ninety-five basis points (.95%). 
  
 “UCC” shall mean the Uniform Commercial Code in effect in the state of Michigan from time to time. 
  
 “Unmatured Event of Default” shall mean any event which, with the giving of notice, the passage of time or both, would constitute an
Event of Default. 
  
 “Voidable Transfer” shall
have the meaning set forth in Section 12.21 hereof. 
  
 “Wholly-Owned Subsidiary” shall mean any Subsidiary of which or in which the Borrower owns, directly or indirectly, one hundred percent (100%) of the Capital Securities of such Subsidiary. 
  
 1.2 Accounting Terms. Any accounting terms used in this Agreement
which are not specifically defined herein shall have the meanings customarily given them in accordance with GAAP. Calculations and determinations of financial and accounting terms used and not otherwise specifically defined hereunder and the
preparation of financial statements to be furnished to the Bank pursuant hereto shall be made and prepared, both as to classification of items and as to amount, in accordance with sound accounting practices and GAAP as used in the preparation of the
financial statements of the Borrower on the date of this Agreement. If any changes in accounting principles or practices from those used in the preparation of the financial statements are hereafter occasioned by the promulgation of rules,
regulations, pronouncements and opinions by or required by the Financial Accounting Standards Board or the American Institute of Certified Public Accountants (or any successor thereto or agencies with similar functions), which results in a material
change in the method of accounting in the financial statements required to be furnished to the Bank hereunder or in the calculation of financial covenants, standards or terms contained in this Agreement, the parties hereto agree to enter into good
faith negotiations to amend such provisions so as equitably to reflect such changes to the end that the criteria for evaluating the financial condition and performance of the Borrower will be the same after such changes as they were before such
changes; and if the parties fail to agree on the amendment of such provisions, the Borrower will furnish financial statements in accordance with such changes, but shall provide calculations, which are reviewed and certified by the Borrower’s
accountants, for all financial covenants, shall perform all financial covenants and shall otherwise observe all financial standards and terms in accordance with applicable accounting principles and practices in effect immediately prior to such
changes. Calculations with respect to financial covenants required to be stated in accordance with applicable accounting principles and practices in effect immediately prior to such changes shall be reviewed and certified by the Borrower’s
accountants. 
  
 1.3 Other Interpretive Provisions.

  
 (a) The meanings of defined terms are equally applicable to
the singular and plural forms of the defined terms. Whenever the context so requires, the neuter gender includes the masculine and feminine, the single number includes the plural, and vice versa, and in particular the word “Borrower” shall
be so construed. 
  

 11 

 (b) Section and Schedule references are to this Agreement unless otherwise specified. The words
“hereof”, “herein” and “hereunder” and words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision of this Agreement 
  
 (c) The term “including” is not limiting, and means
“including, without limitation”. 
  
 (d) In the
computation of periods of time from a specified date to a later specified date, the word “from” means “from and including”; the words “to” and “until” each mean “to but excluding”, and the word
“through” means “to and including”. 
  
 (e)
Unless otherwise expressly provided herein, (i) references to agreements (including this Agreement and the other Loan Documents) and other contractual instruments shall be deemed to include all subsequent amendments, restatements, supplements
and other modifications thereto, but only to the extent such amendments, restatements, supplements and other modifications are not prohibited by the terms of any Loan Document, and (ii) references to any statute or regulation shall be construed
as including all statutory and regulatory provisions amending, replacing, supplementing or interpreting such statute or regulation. 
  
 (f) To the extent any of the provisions of the other Loan Documents are inconsistent with the terms of this Agreement the provisions of this Agreement
shall govern. 
  
 (g) This Agreement and the other Loan Documents
may use several different limitations, tests or measurements to regulate the same or similar matters. All such limitations, tests and measurements are cumulative and each shall be performed in accordance with its terms. 
  
 Section 2 COMMITMENT OF THE BANK. 
  
 2.1 Revolving Loans. 
  
 (a) Revolving Loan Commitment. Subject to the terms and conditions of
this Agreement and the other Loan Documents, and in reliance upon the representations and warranties of the Borrower set forth herein and in the other Loan Documents, the Bank agrees to make such Revolving Loans at such times as the Borrower may
from time to time request until, but not including, the Revolving Loan Maturity Date, and in such amounts as the Borrower may from time to time request, provided, however, that the aggregate principal balance of all Revolving Loans outstanding at
any time shall not exceed the Revolving Loan Commitment. Revolving Loans made by the Bank may be repaid and, subject to the terms and conditions hereof, borrowed again up to, but not including the Revolving Loan Maturity Date unless the Revolving
Loans are otherwise accelerated, terminated or extended as provided in this Agreement. The Revolving Loans shall be used by the Borrower for the purposes of business acquisitions and working capital in the course of normal Borrower operations.

  
 (b) Revolving Loan Interest and Payments. Except as
otherwise provided in this Section 2.1(b), the principal amount of the Revolving Loans outstanding from time to time shall bear interest at the applicable Revolving Interest Rate. Accrued and unpaid interest on the 
  

 12 

 unpaid principal balance of all Revolving Loans outstanding from time to time shall be due and payable monthly, in
arrears, commencing on January 1, 2006 and continuing on the first day of each calendar month thereafter. Any amount of principal or interest on the Revolving Loans which is not paid when due, whether at stated maturity, by acceleration or
otherwise, shall, upon written notice to Borrower from Bank, bear interest payable on demand at the Default Rate. 
  
 (c) Revolving Loan Principal Payments. 
  
 (i) Revolving Loan Mandatory Payments. All Revolving Loans hereunder shall be repaid by the Borrower on the Revolving Loan Maturity Date, unless
payable sooner pursuant to the provisions of this Agreement. In the event the aggregate outstanding principal balance of all Revolving Loans hereunder exceeds the Revolving Loan Commitment, the Borrower shall, upon notice from the Bank, immediately
make such repayments of the Revolving Loans or take such other actions as are satisfactory to the Bank as shall be necessary to eliminate such excess. 
  
 (ii) Optional Prepayments. The Borrower may from time to time prepay the Revolving Loans, in whole or in part, without any prepayment penalty
whatsoever, provided that any prepayment of the entire principal balance shall include accrued interest on such Loans to the date of such prepayment. 
  
 2.2 Additional Trailing Average LIBOR Loan Provisions. 
  
 (a) LIBOR Unavailability. If the Bank determines in good faith (which determination shall be conclusive, absent manifest error) prior to the
commencement of any Interest Period that (i) the making or maintenance of any Trailing Average LIBOR Loan would violate any applicable law, rule, regulation or directive, whether or not having the force of law, (ii) United States dollar
deposits for one-month Interest Periods in the principal amount for funding any Trailing Average LIBOR Loan are not available in the London Interbank Eurodollar market in the ordinary course of business, (iii) by reason of circumstances
affecting the London Interbank Eurodollar market, adequate and fair means do not exist for ascertaining the Trailing Average LIBOR Rate to be applicable to the relevant Trailing Average LIBOR Loan, or (iv) the Trailing Average LIBOR Rate does
not accurately reflect the cost to the Bank of a Trailing Average LIBOR Loan, the Bank shall promptly notify the Borrower thereof and, so long as the foregoing conditions continue, none of the Loans may be advanced as Trailing Average LIBOR Loans
thereafter. In addition, at the Borrower’s option, each existing Trailing Average LIBOR Loan shall be immediately (i) converted to a Prime Loan, or (ii) due and payable without further demand, presentment, protest or notice of any
kind, all of which are hereby waived by the Borrower. 
  
 (b)
Regulatory Change. In addition, if, after the date hereof, a Regulatory Change shall, in the reasonable determination of the Bank, make it unlawful for the Bank to make or maintain Trailing Average LIBOR Loans, then the Bank shall promptly
notify the Borrower and none of the Loans may be advanced as a Trailing Average LIBOR Loan thereafter. In addition, at the Borrower’s option, each existing Trailing Average LIBOR Loan shall be immediately (i) converted to a Prime Loan or
(ii) due and payable all without further demand, presentment, protest or notice of any kind, all of which are hereby waived by the Borrower. 
  

 13 

 (c) LIBOR Indemnity. If any Regulatory Change, or compliance by the Bank or any Person controlling
the Bank with any request or directive of any governmental authority, central bank or comparable agency (whether or not having the force of law) shall (a) impose, modify or deem applicable any assessment, reserve, special deposit or similar
requirement against assets held by, or deposits in or for the account of or loans by, or any other acquisition of funds or disbursements by, the Bank; (b) subject the Bank or any Trailing Average LIBOR Loan to any tax, duty, charge, stamp tax
or fee or change the basis of taxation of payments to the Bank of principal or interest due from the Borrower to the Bank hereunder (other than a change in the taxation of the overall net income of the Bank); or (c) impose on the Bank any other
condition regarding such Trailing Average LIBOR Loan or the Bank’s funding thereof, and the Bank shall determine (which determination shall be conclusive, absent manifest error) that the result of the foregoing is to increase the cost to, or to
impose a cost on, the Bank or such controlling person of making or maintaining such Trailing Average LIBOR Loan or to reduce the amount of principal or interest received by the Bank hereunder, then the Borrower shall pay to the Bank or such
controlling Person, on demand, such additional amounts as the Bank shall, from time to time, determine are sufficient to compensate and indemnify the Bank for such increased cost or reduced amount. 
  
 2.3 Interest and Fee Computation; Collection of Funds. Except as
otherwise set forth herein, all interest and fees shall be calculated on the basis of a year consisting of 360 days and shall be paid for the actual number of days elapsed. Principal payments submitted in funds not immediately available shall
continue to bear interest until collected. If any payment to be made by the Borrower hereunder or under any Note shall become due on a day other than a Business Day, such payment shall be made on the next succeeding Business Day and such extension
of time shall be included in computing any interest in respect of such payment. Notwithstanding anything to the contrary contained herein, the final payment due under any of the Loans must be made by wire transfer or other immediately available
funds. All payments made by the Borrower hereunder or under any of the Loan Documents shall be made without setoff, counterclaim, or other defense. To the extent permitted by applicable law, all payments hereunder or under any of the Loan Documents
(including any payment of principal, interest, or fees) to, or for the benefit, of any Person shall be made by the Borrower free and clear of, and without deduction or withholding for, or account of, any taxes now or hereinafter imposed by any
taxing authority. 
  
 2.4 Late Charge. If any payment of
interest or principal due hereunder is not made within ten (10) days after such payment is due in accordance with the terms hereof, then, in addition to the payment of the amount so due, the Borrower shall pay to the Bank a “late
charge” of five cents for each whole dollar so overdue to defray part of the cost of collection and handling such late payment. The Borrower agrees that the damages to be sustained by the Bank for the detriment caused by any late payment are
extremely difficult and impractical to ascertain, and that the amount of five cents for each one dollar due is a reasonable estimate of such damages, does not constitute interest, and is not a penalty. 
  
 2.5 Taxes. 
  
 (a) All payments made by the Borrower under this Agreement shall be made
free and clear of, and without deduction or withholding for or on account of, any present or future income, stamp or other taxes, levies, imposts, duties, charges, fees, deductions or 
  

 14 

 withholdings, now or hereafter imposed, levied, collected, withheld or assessed by any governmental authority, excluding
net income taxes and franchise taxes (imposed in lieu of net income taxes) imposed on the Bank as a result of a present or former connection between the Bank and the jurisdiction of the governmental authority imposing such tax or any political
subdivision or taxing authority thereof or therein (other than any such connection arising solely from the Bank having executed, delivered or performed its obligations or received a payment under, or enforced, this Agreement or any other Loan
Document). If any such non-excluded taxes, levies, imposts, duties, charges, fees, deductions or withholdings (collectively, “Non-Excluded Taxes”) or Other Taxes are required to be withheld from any amounts payable to the Bank hereunder,
the amounts so payable to the Bank shall be increased to the extent necessary to yield to the Bank (after payment of all Non-Excluded Taxes and Other Taxes) interest or any such other amounts payable hereunder at the rates or in the amounts
specified in this Agreement, provided, however, that the Borrower shall not be required to increase any such amounts payable to the Bank with respect to any Non-Excluded Taxes that are attributable to the Bank’s failure to comply with the
requirements of subsection (c). 
  
 (b) The Borrower shall pay any
Other Taxes to the relevant governmental authority in accordance with applicable law. 
  
 (c) At the request of the Borrower and at the Borrower’s sole cost, the Bank shall take reasonable steps to (i) contest its liability for any Non-Excluded Taxes or Other Taxes that have not been paid, or
(ii) seek a refund of any Non-Excluded Taxes or Other Taxes that have been paid. 
  
 (d) Whenever any Non-Excluded Taxes or Other Taxes are payable by the Borrower, as promptly as possible thereafter the Borrower shall send to the Bank a certified copy of an original official receipt received by the
Borrower showing payment thereof. If the Borrower fails to pay any Non-Excluded Taxes or Other Taxes when due to the appropriate taxing authority or fails to remit to the Bank the required receipts or other required documentary evidence or if any
governmental authority seeks to collect a Non-Excluded Tax or Other Tax directly from the Bank for any other reason, the Borrower shall indemnify the Bank on an after-tax basis for any incremental taxes, interest or penalties that may become payable
by the Bank. 
  
 (e) The agreements in this Section shall survive
the satisfaction and payment of the Obligations and the termination of this Agreement. 
  
 2.6 Closing Fee: Borrower shall pay to the Bank a closing fee of Ten Thousand Dollars ($10,000), which fee shall be deemed fully earned on the date of disbursement of the initial Loans hereunder, and which fee
shall be payable at the closing hereof. 
  
 2.7 Unused Line
Fee: Borrower shall pay to the Bank an unused line fee equal to one-sixteenth percent (0.0625%) per annum of the difference between the Revolving Loan Commitment and the average daily balance of the Revolving Loans (“Unused Line Fee”).
The Unused Line Fee shall be (i) computed for each calendar quarter using the average daily balance of the Revolving Loans for that calendar quarter, and (ii) deemed fully earned by the Bank and payable in arrears on the first Business Day
of each calendar quarter for the immediately preceding quarter. The Unused Line Fee shall be calculated on the basis of a 360 day year. 
  

 15 

 2.8 All Loans to Constitute Single Obligation. The Loans shall constitute one general obligation
of the Borrower. 
  
 Section 3 CONDITIONS OF BORROWING.

  
 Notwithstanding any other provision of this Agreement,
the Bank shall not be required to disburse, make or continue all or any portion of the Loans, if any of the following conditions shall have occurred. 
  
 3.1 Loan Documents. The Borrower shall have failed to execute and deliver to the Bank any of the following Loan Documents, all of which must be
satisfactory to the Bank and the Bank’s counsel in form, substance and execution: 
  
 (a) Loan Agreement. Two copies of this Agreement duly executed by the Borrower. 
  
 (b) Revolving Note. A Revolving Note duly executed by the Borrower, in the form prepared by and acceptable to the Bank. 
  
 (c) Organizational and Authorization Document. Certified copies of
(i) Articles of Incorporation of the Borrower, (ii) good standing certificates in the state of formation of the Borrower and in each other state requested by the Bank, (iii) resolutions of the shareholders of the Borrower approving
and authorizing the Borrower’s execution, delivery and performance of the Loan Documents to which it is party and the transactions contemplated thereby, and (iv) signature and incumbency certificates of the officers of the Borrower,
executing any of the Loan Documents, it being understood that the Bank may conclusively rely on each such certificate until formally advised by a like certificate of any changes therein, all certified by its secretary or an assistant secretary (or
similar officer) as being in full force and effect without modification. 
  
 (d) Insurance. Evidence satisfactory to the Bank of the existence of insurance required to be maintained pursuant to Section 7.6. 
  
 (e) Additional Documents. Such other certificates, financial statements, schedules, resolutions, opinions of counsel,
notes and other documents which are provided for hereunder or which the Bank shall require. 
  
 3.2 Event of Default. Any Event of Default or Unmatured Event of Default shall have occurred and be continuing. 
  
 3.3 Material Adverse Effect. The occurrence of any event having a Material Adverse Effect upon the Borrower. 
  
 3.4 Litigation. Any litigation or governmental proceeding shall have
been instituted against the Borrower or any of its officers or shareholders reasonably likely of having a Materially Adverse Effect upon the Borrower, other than as disclosed in Schedule 6.9. 
  

 16 

 3.5 Representations and Warranties. Any representation or warranty of the Borrower contained
herein or in any Loan Document shall be untrue or incorrect in any material respect as of the date of any Loan as though made on such date, except to the extent such representation or warranty expressly relates to an earlier date. 
  
 Section 4 NOTES EVIDENCING LOANS. 
  
 4.1 Revolving Note. The Revolving Loans shall be evidenced by the
Revolving Note. At the time of the initial disbursement of a Revolving Loan and at each time any additional Revolving Loan shall be requested hereunder or a repayment made in whole or in part thereon, a notation thereof shall be made on the books
and records of the Bank. All amounts recorded shall be, absent manifest error, conclusive and binding evidence of (i) the principal amount of the Revolving Loans advanced hereunder, (ii) any accrued and unpaid interest owing on the
Revolving Loans, and (iii) all amounts repaid on the Revolving Loans. The failure to record any such amount or any error in recording such amounts shall not, however, limit or otherwise affect the obligations of the Borrower under the Revolving
Note to repay the principal amount of the Revolving Loans, together with all interest accruing thereon. 
  
 Section 5 MANNER OF BORROWING. 
  
 5.1 Borrowing Procedures. Each Loan shall be made available to the Borrower upon any written, verbal, electronic, telephonic or telecopy loan request which the Bank in good faith believes to emanate from a
properly authorized representative of the Borrower, whether or not that is in fact the case. Each such request shall be effective upon receipt by the Bank, shall be irrevocable and shall specify the date, amount and type of borrowing. A request for
a direct advance must be received by the Bank no later than 3:00 p.m. Lansing, Michigan time, on the day it is to be funded. The proceeds of each direct advance shall be made available at the office of the Bank by credit to the account of the
Borrower or by other means requested by the Borrower and acceptable to the Bank. The Borrower does hereby irrevocably confirm, ratify and approve all such advances by the Bank and does hereby indemnify the Bank against losses and expenses (including
court costs, attorneys’ and paralegals’ fees) and shall hold the Bank harmless with respect thereto. 
  
 5.2 Automatic Debit. In order to effectuate the timely payment of any of the Obligations when due, the Borrower hereby authorizes and directs the
Bank, at the Bank’s option, to (a) debit the amount of the Obligations to any ordinary deposit account of the Borrower, or (b) make a Revolving Loan hereunder to pay the amount of the Obligations. 
  
 5.3 Discretionary Disbursements. The Bank, in its sole and absolute
discretion, may immediately upon notice to the Borrower, disburse any or all proceeds of the Loans made or available to the Borrower pursuant to this Agreement to pay any fees, costs, expenses or other amounts required to be paid by the Borrower
hereunder and not so paid. All monies so disbursed shall be a part of the Obligations, payable by the Borrower on demand from the Bank. 
  

 17 

 Section 6 REPRESENTATIONS AND WARRANTIES. 
  
 To induce the Bank to make the Loans, the Borrower makes the following
representations and warranties to the Bank, each of which shall survive the execution and delivery of this Agreement: 
  
 6.1 Borrower Organization and Name. The Borrower is a corporation existing and in good standing under the laws of the State of Michigan, with full
and adequate power to carry on and conduct its business as presently conducted. The Borrower is duly licensed or qualified in all foreign jurisdictions wherein the nature of its activities require such qualification or licensing, except for such
jurisdictions where the failure to so qualify would not have a Material Adverse Effect. The Borrower’s Corporate Identification Number is 059-092. The exact legal name of the Borrower is as set forth in the first paragraph of this Agreement.

  
 6.2 Authorization. The Borrower has full right, power
and authority to enter into this Agreement, to make the borrowings and execute and deliver the Loan Documents as provided herein and to perform all of its duties and obligations under this Agreement and the other Loan Documents. The execution and
delivery of this Agreement and the other Loan Documents will not, nor will the observance or performance of any of the matters and things herein or therein set forth, violate or contravene any provision of law or of the articles of organization of
the Borrower. All necessary and appropriate action has been taken on the part of the Borrower to authorize the execution and delivery of this Agreement and the Loan Documents. 
  
 6.3 Validity and Binding Nature. This Agreement and the other Loan Documents are the legal, valid and binding
obligations of the Borrower, enforceable against the Borrower in accordance with their terms, subject to bankruptcy, insolvency and similar laws affecting the enforceability of creditors’ rights generally and to general principles of equity.

  
 6.4 Consent; Absence of Breach. The execution, delivery
and performance of this Agreement, the other Loan Documents and any other documents or instruments to be executed and delivered by the Borrower in connection with the Loans, and the borrowings by the Borrower hereunder, do not and will not
(a) require any consent, approval, authorization, or filings with, notice to or other act by or in respect of, any governmental authority or any other Person (other than any consent or approval which has been obtained and is in full force and
effect); or (b) conflict with (i) any provision of law or any applicable regulation, order, writ, injunction or decree of any court or governmental authority, (ii) the articles of incorporation of the Borrower, or (iii) any
material agreement, indenture, instrument or other document, or any judgment, order or decree, which is binding upon the Borrower or any of its properties or assets. 
  
 6.5 Ownership of Properties; Liens. The Borrower is the sole owner of all of its properties and assets, real and
personal, tangible and intangible, of any nature whatsoever (including patents, trademarks, trade names, service marks and copyrights), free and clear of all Liens, charges and claims (including infringement claims with respect to patents,
trademarks, service marks, copyrights and the like), other than Permitted Liens. 
  
 6.6 Equity Ownership. All issued and outstanding Capital Securities of the Borrower and each of its Subsidiaries are duly authorized and validly issued, fully paid, non-assessable, and 
  

 18 

 free and clear of all Liens other than those in favor of the Bank, if any, and such securities were issued in material
compliance with all applicable state and federal laws concerning the issuance of securities. As of the date hereof, there are no pre-emptive or other outstanding rights, options (other than employee stock options), warrants (other than warrants
issued to scientific review council members), conversion rights or other similar agreements or understandings for the purchase or acquisition of any Capital Securities of the Borrower and each of its Subsidiaries. 
  
 6.7 Intellectual Property. Except as discussed in this Agreement, the
Borrower owns and possesses or has a license or other right to use all Intellectual Property as are necessary for the conduct of the businesses of the Borrower, without any infringement upon rights of others which could reasonably be expected to
have a Material Adverse Effect upon the Borrower, and no material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property nor
does the Borrower know of any valid basis for any such claim. 
  
 6.8 Financial Statements. All financial statements submitted to the Bank have been prepared in accordance with sound accounting practices and GAAP on a basis, except as otherwise noted therein, consistent with the previous fiscal
year and present fairly the financial condition of the Borrower and the results of the operations for the Borrower as of such date and for the periods indicated. Since the date of the most recent financial statement submitted by the Borrower to the
Bank, there has been no change in the financial condition or in the assets or liabilities of the Borrower having a Material Adverse Effect on the Borrower. 
  
 6.9 Litigation and Contingent Liabilities. There is no litigation, arbitration proceeding, demand, charge, claim, petition or governmental
investigation or proceeding pending, or, to Borrower’s knowledge, threatened, against the Borrower, which, if adversely determined, which might reasonably be expected to have a Material Adverse Effect upon the Borrower, except as set forth in
Schedule 6.9. Other than any liability incident to such litigation or proceedings, the Borrower has no material guarantee obligations, contingent liabilities, liabilities for taxes, or any long-term leases or unusual forward or long-term
commitments, including any interest rate or foreign currency swap or exchange transaction or other obligation in respect of derivatives, that are not fully-reflected or fully reserved for in the most recent audited financial statements delivered
pursuant to subsection 7.8(a) or fully-reflected or fully reserved for in the most recent quarterly financial statements delivered pursuant to subsection 7.8(b) and not permitted by Section 8.1. 
  
 6.10 Event of Default. No Event of Default or, to Borrower’s
knowledge, Unmatured Event of Default exists or would result from the incurrence by the Borrower of any of the Obligations hereunder or under any of the other Loan Document, and the Borrower is not in default (without regard to grace or cure
periods) under any other contract or agreement to which it is a party. 
  
 6.11 Adverse Circumstances. Except as discussed in this Agreement, no condition, circumstance, event, agreement, document, instrument, restriction, litigation or proceeding (or threatened litigation or proceeding or basis therefor)
exists which (a) would have a Material Adverse Effect upon the Borrower, or (b) would constitute an Event of Default or an Unmatured Event of Default. 
  

 19 

 6.12 Environmental Laws and Hazardous Substances. Except as set forth on Schedule 6.12, the
Borrower has not generated, used, stored, treated, transported, manufactured, handled, produced or disposed of any Hazardous Substances, on or off any of the premises of the Borrower (whether or not owned by it) in any manner which at any time
violates any Environmental Law or any license, permit, certificate, approval or similar authorization thereunder. The Borrower will comply in all material respects with all Environmental Laws and will obtain all licenses, permits, certificates,
approvals and similar authorizations thereunder. Borrower has received no notice of any investigation, proceeding, complaint, order, directive, claim, citation or notice by any governmental authority or any other Person, nor, to Borrower’s
knowledge, is any pending or threatened, and the Borrower shall immediately notify the Bank upon becoming aware of any such investigation, proceeding, complaint, order, directive, claim, citation or notice, and shall take prompt and appropriate
actions to respond thereto, with respect to any non-compliance with, or violation of, the requirements of any Environmental Law by the Borrower or the release, spill or discharge, threatened or actual, of any Hazardous Material or the generation,
use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Material or any other environmental, health or safety matter, which affects the Borrower or its business, operations or assets or any properties
at which the Borrower has transported, stored or disposed of any Hazardous Substances. The Borrower has no material liability, contingent or otherwise, in connection with a release, spill or discharge, threatened or actual, of any Hazardous
Substances or the generation, use, storage, treatment, transportation, manufacture, handling, production or disposal of any Hazardous Material. The Borrower further agrees to allow the Bank or its agent access to the properties of the Borrower to
confirm compliance with all Environmental Laws, and the Borrower shall, following determination by the Bank that there is non-compliance, or any condition which requires any action by or on behalf of the Borrower in order to avoid any
non-compliance, with any Environmental Law, at the Borrower’s sole expense, cause an independent environmental engineer acceptable to the Bank to conduct such tests of the relevant site as are appropriate, and prepare and deliver a report
setting forth the result of such tests, a proposed plan for remediation and an estimate of the costs thereof. 
  
 6.13 Solvency, etc. As of the date hereof, and immediately prior to and after giving effect to the issuance of each Loan hereunder and the use of
the proceeds thereof, (a) the fair value of the Borrower’s assets is greater than the amount of its liabilities (including disputed, contingent and unliquidated liabilities) as such value is established and liabilities evaluated as
required under the Section 548 of the United States Bankruptcy Code, (b) the present fair saleable value of the Borrower’s assets is not less than the amount that will be required to pay the probable liability on its debts as they
become absolute and matured, (c) the Borrower is able to realize upon its assets and pay its debts and other liabilities (including disputed, contingent and unliquidated liabilities) as they mature in the normal course of business, (d) the
Borrower does not intend to, and does not believe that it will, incur debts or liabilities beyond its ability to pay as such debts and liabilities mature, and (e) the Borrower is not engaged in business or a transaction, and is not about to
engage in business or a transaction, for which its property would constitute unreasonably small capital. 
  
 6.14 ERISA Obligations. All Employee Plans of the Borrower meet the minimum funding standards of Section 302 of ERISA and 412 of the Internal
Revenue Code where applicable, and each such Employee Plan that is intended to be qualified within the meaning of 
  

 20 

 Section 401 of the Internal Revenue Code of 1986 is qualified. No withdrawal liability has been incurred under any
such Employee Plans and no “Reportable Event” or “Prohibited Transaction” (as such terms are defined in ERISA), has occurred with respect to any such Employee Plans, unless approved by the appropriate governmental agencies. The
Borrower has promptly paid and discharged all obligations and liabilities arising under the Employee Retirement Income Security Act of 1974 (“ERISA”) of a character which if unpaid or unperformed might result in the imposition of a Lien
against any of its properties or assets. 
  
 6.15 Labor
Relations. Except as could not reasonably be expected to have a Material Adverse Effect, (i) there are no strikes, lockouts or other labor disputes against the Borrower or threatened, (ii) hours worked by and payment made to employees
of the Borrower have not been in violation of the Fair Labor Standards Act or any other applicable law, and (ii) no unfair labor practice complaint is pending against the Borrower or threatened before any governmental authority. 
  
 6.16 Lending Relationship. The relationship hereby created between the
Borrower and the Bank is and has been conducted on an open and arm’s length basis in which no fiduciary relationship exists and that the Borrower has not relied and is not relying on any such fiduciary relationship in executing this Agreement
and in consummating the Loans. The Bank represents that it will receive any Note payable to its order as evidence of a bank loan. 
  
 6.17 Business Loan. The Loans, including interest rate, fees and charges as contemplated hereby, (i) are extensions of credit to a business
entity within the purview of MCL 438.61, as amended from time to time, (ii) are an exempted transaction under the Truth In Lending Act, 12 U.S.C. 1601 et seq., as amended from time to time, and (iii) do not, and when
disbursed shall not, violate the provisions of the Michigan usury laws, any consumer credit laws or the usury laws of any state which may have jurisdiction over this transaction, the Borrower or any property securing the Loans. 
  
 6.18 Taxes. The Borrower has timely filed all tax returns and reports
required by law to have been filed by it and has paid all taxes, governmental charges and assessments due and payable with respect to such returns, except any such taxes or charges which are being diligently contested in good faith by appropriate
proceedings and for which adequate reserves in accordance with GAAP shall have been set aside on its books, are insured against or bonded over to the satisfaction of the Bank and the contesting of such payment does not create a Lien which is not a
Permitted Lien. There is no controversy or objection pending, or threatened in respect of any tax returns of the Borrower. The Borrower has made adequate reserves on its books and records in accordance with GAAP for all taxes that have accrued but
which are not yet due and payable. 
  
 6.19 Compliance with
Regulation U. No portion of the proceeds of the Loans shall be used by the Borrower, or any Affiliates of the Borrower, either directly or indirectly, for the purpose of purchasing or carrying any margin stock, within the meaning of Regulation U
as adopted by the Board of Governors of the Federal Reserve System or any successor thereto. 
  
 6.20 Governmental Regulation. The Borrower is not, or after giving effect to any loan, will not be, subject to regulation under the Public Utility Holding Company Act of 1935, the 
  

 21 

 Federal Power Act, the ICC Termination Act of 1995 or the Investment Company Act of 1940 or to any federal or state
statute or regulation limiting its ability to incur indebtedness for borrowed money. 
  
 6.21 Place of Business. The principal place of business and books and records of the Borrower is set forth in the preamble to this Agreement, if other than at such principal place of business, is as set forth
on Schedule 6.21 attached hereto and made a part hereof, and the Borrower shall promptly notify the Bank of any change in such locations. 
  
 6.22 Complete Information. This Agreement and all financial statements, schedules, certificates, confirmations, agreements, contracts, and other
materials and information heretofore or contemporaneously herewith furnished in writing by the Borrower to the Bank for purposes of, or in connection with, this Agreement and the transactions contemplated hereby is, and all written information
hereafter furnished by or on behalf of the Borrower to the Bank pursuant hereto or in connection herewith will be, true and accurate in every material respect on the date as of which such information is dated or certified (it being recognized by the
Bank that any projections and forecasts provided by the Borrower are based on good faith estimates and assumptions believed by the Borrower to be reasonable as of the date of the applicable projections or assumptions and that actual results during
the period or periods covered by any such projections and forecasts may differ from projected or forecasted results). 
  
 Section 7 AFFIRMATIVE COVENANTS. 
  
 7.1 Compliance with Bank Regulatory Requirements; Increased Costs. If the Bank shall reasonably determine that any Regulatory Change, or compliance
by the Bank or any Person controlling the Bank with any request or directive (whether or not having the force of law) of any governmental authority, central bank or comparable agency has or would have the effect of reducing the rate of return on the
Bank’s or such controlling Person’s capital as a consequence of the Bank’s obligations hereunder to a level below that which the Bank or such controlling Person could have achieved but for such Regulatory Change or compliance (taking
into consideration the Bank’s or such controlling Person’s policies with respect to capital adequacy) by an amount deemed by the Bank or such controlling Person to be material or would otherwise reduce the amount of any sum received or
receivable by the Bank under this Agreement or under any Note with respect thereto, then from time to time, upon demand by the Bank (which demand shall be accompanied by a statement setting forth the basis for such demand and a calculation of the
amount thereof in reasonable detail), the Borrower shall pay directly to the Bank or such controlling Person such additional amount as will compensate the Bank for such increased cost or such reduction, so long as such amounts have accrued on or
after the day which is one hundred eighty days (180) days prior to the date on which the Bank first made demand therefor. 
  
 7.2 Borrower Existence. The Borrower shall at all times preserve and maintain its (a) its existence and good standing in the jurisdiction of
its organization, and (b) its qualification to do business and good standing in each jurisdiction where the nature of its business makes such qualification necessary (other than such jurisdictions in which the failure to be qualified or in good
standing could not reasonably be expected to have a Material Adverse Effect), and shall at all times continue as a going concern in the business which the Borrower is presently conducting. 
  

 22 

 7.3 Compliance With Laws. The Borrower shall use the proceeds of the Loans for business
acquisition and working capital and other general corporate or business purposes not in contravention of any requirements of law and not in violation of this Agreement, and shall comply in all respects, including the conduct of its business and
operations and the use of its properties and assets, with all applicable laws, rules, regulations, decrees, orders, judgments, licenses and permits, except where failure to comply could not reasonably be expected to have a Material Adverse Effect.
In addition, and without limiting the foregoing sentence, the Borrower shall (a) ensure, and cause each Subsidiary to ensure, that no person who owns a controlling interest in or otherwise controls the Borrower or any Subsidiary is or shall be
listed on the Specially Designated Nationals and Blocked Person List or other similar lists maintained by the Office of Foreign Assets Control (“OFAC”), the Department of the Treasury or included in any Executive Orders, (b) not use
or permit the use of the proceeds of the Loans to violate any of the foreign asset control regulations of OFAC or any enabling statute or Executive Order relating thereto, and (c) comply, and cause each Subsidiary to comply, with all applicable
Bank Secrecy Act laws and regulations, as amended. 
  
 7.4
Payment of Taxes and Liabilities. The Borrower shall pay and discharge, prior to delinquency and before penalties accrue thereon, all property and other taxes, and all governmental charges or levies against it, as well as claims of any kind
which, if unpaid, could become a Lien on any of its property; provided that the foregoing shall not require the Borrower to pay any such tax or charge so long as it shall contest the validity thereof in good faith by appropriate proceedings and
shall set aside on its books adequate reserves with respect thereto in accordance with GAAP and, in the case of a claim which could become a Lien, such contest proceedings stay the foreclosure of such Lien or the sale of any property to satisfy such
claim. 
  
 7.5 Maintain Property. The Borrower shall at all
times maintain, preserve and keep its plant, properties and Equipment, in good repair, working order and condition, and shall from time to time make all needful and proper repairs, renewals, replacements, and additions thereto so that at all times
the efficiency thereof shall be fully preserved and maintained. The Borrower shall permit the Bank to examine and inspect such plant, properties and Equipment at all reasonable times. 
  
 7.6 Maintain Insurance. The Borrower shall at all times maintain insurance with insurance companies reasonably
acceptable to the Bank, such insurance coverage as may be required by any law or governmental regulation or court decree or order applicable to it and such other insurance, to such extent and against such hazards and liabilities, including
employers’, public and professional liability risks, as is customarily maintained by companies similarly situated, and shall have insured amounts no less than, and deductibles no higher than, are reasonably acceptable to the Bank. Upon request
of the Bank, the Borrower shall, from time to time, furnish to the Bank a certificate setting forth in reasonable detail the nature and extent of all insurance maintained by the Borrower, which shall be reasonably acceptable in all respects to the
Bank. The Bank acknowledges and agrees that Borrower’s insurance coverage reflected on the insurance certificate previously provided to the Bank by the Borrower, meets the requirements of this Section 7.6 is acceptable to the Bank.

  
 7.7 ERISA Liabilities; Employee Plans. The Borrower
shall (i) keep in full force and effect any and all Employee Plans which are presently in existence or may, from time to time, 
  

 23 

 come into existence under ERISA, and not withdraw from any such Employee Plans, unless such withdrawal can be effected or
such Employee Plans can be terminated without liability to the Borrower; (ii) make contributions to all of such Employee Plans in a timely manner and in a sufficient amount to comply with the standards of ERISA; including the minimum funding
standards of ERISA; (iii) comply with all material requirements of ERISA which relate to such Employee Plans; (iv) notify the Bank immediately upon receipt by the Borrower of any notice concerning the imposition of any withdrawal liability
or of the institution of any proceeding or other action which may result in the termination of any such Employee Plans or the appointment of a trustee to administer such Employee Plans; (v) promptly advise the Bank of the occurrence of any
“Reportable Event” or “Prohibited Transaction” (as such terms are defined in ERISA), with respect to any such Employee Plans; and (vi) amend any Employee Plan that is intended to be qualified within the meaning of
Section 401 of the Internal Revenue Code of 1986 to the extent necessary to keep the Employee Plan qualified, and to cause the Employee Plan to be administered and operated in a manner that does not cause the Employee Plan to lose its qualified
status. 
  
 7.8 Financial Statements. The Borrower shall at
all times maintain a standard and modern system of accounting, on the accrual basis of accounting and in all respects in accordance with GAAP, and shall furnish to the Bank or its authorized representatives such information regarding the business
affairs, operations and financial condition of the Borrower, including: 
  
 (a) promptly when available, and in any event, within one hundred twenty (120) days after the close of each of its fiscal years, a copy of (i) the annual audited financial statements of the Borrower,
including balance sheet, statement of income and retained earnings, statement of cash flows for the fiscal year then ended and such other information (including nonfinancial information) as the Bank may request, in reasonable detail, prepared and
certified without adverse reference to going concern value and without qualification by an independent auditor of recognized standing, selected by the Borrower and reasonably acceptable to the Bank; and 
  
 (b) promptly when available, and in any event, within sixty (60) days
following the end of each fiscal quarter, a copy of the Borrower’s Form 10-Q regarding such fiscal quarter. 
  
 No change with respect to such accounting principles shall be made by the Borrower without giving prior notification to the Bank. The Borrower represents and warrants to
the Bank that the financial statements delivered to the Bank at or prior to the execution and delivery of this Agreement and to be delivered at all times thereafter accurately reflect and will accurately reflect the financial condition of the
Borrower. The Bank shall have the right at all times during business hours to inspect the books and records of the Borrower and make extracts therefrom. 
  
 7.9 Supplemental Information. The Borrower shall immediately upon receipt thereof, provide to the Bank copies of interim and supplemental reports
if any, submitted to the Borrower by independent accountants in connection with any interim audit or review of the books of the Borrower. 
  

 24 

 7.10 Covenant Compliance Certificate. The Borrower shall, contemporaneously with the furnishing of
the financial statements pursuant to Section 7.8, deliver to the Bank a duly completed compliance certificate, dated the date of such financial statements and certified as true and correct by an appropriate officer of the Borrower,
containing a computation of each of the financial covenants set forth in Section 9 and stating that the Borrower has not become aware of any Event of Default or Unmatured Event of Default that has occurred and is continuing or, if there
is any such Event of Default or Unmatured Event of Default describing it and the steps, if any, being taken to cure it. 
  
 7.11 Other Reports. The Borrower shall, within such period of time as the Bank may specify, deliver to the Bank such other schedules and reports as
the Bank may require. 
  
 7.12 Intellectual Property. The
Borrower shall maintain, preserve and renew all Intellectual Property necessary for the conduct of its business as and where the same is currently located as heretofore or as hereafter conducted by it, except for a failure to maintain, preserve or
renew which would not have a Material Adverse Effect on Borrower. 
  
 7.13 Notice of Proceedings. The Borrower, promptly upon becoming aware, shall give written notice to the Bank of any litigation, arbitration or governmental investigation or proceeding not previously disclosed by the Borrower to the
Bank which has been instituted or, to the knowledge of the Borrower, is threatened against the Borrower or to which any of its properties is subject which might reasonably be expected to have a Material Adverse Effect. 
  
 7.14 Notice of Event of Default or Material Adverse Effect. The
Borrower shall, immediately after the commencement thereof, give notice to the Bank in writing of the occurrence of any Event of Default or any Unmatured Event of Default, or the occurrence of any condition or event which might reasonably be
expected to have a Material Adverse Effect. 
  
 7.15
Environmental Matters. If any release or threatened release or other disposal of Hazardous Substances shall occur or shall have occurred on any real property or any other assets of the Borrower, the Borrower shall cause the prompt containment
and removal of such Hazardous Substances and the remediation of such real property or other assets as necessary to comply with all Environmental Laws and to preserve the value of such real property or other assets. Without limiting the generality of
the foregoing, the Borrower shall comply with any Federal or state judicial or administrative order requiring the performance at any real property of the Borrower of activities in response to the release or threatened release of a Hazardous
Substance. To the extent that the transportation of Hazardous Substances is permitted by this Agreement, the Borrower shall dispose of such Hazardous Substances, or of any other wastes, only at licensed disposal facilities operating in compliance
with Environmental Laws. 
  
 7.16 Banking Relationship.
Except for (i) those depository accounts set forth on Schedule 7.16 and (ii) a reasonable period of transition from Borrower’s existing lock box relationship, the Borrower covenants and agrees, at all times during the term of this
Agreement, to utilize the Bank as its primary bank of accounts (“Deposit Accounts”) and depository for all financial services, including all receipts, disbursements, cash management and related services. 
  

 25 

 Section 8 NEGATIVE COVENANTS. 
  
 8.1 Debt. The Borrower shall not, either directly or indirectly, create, assume, incur or have outstanding any Debt
(including purchase money indebtedness), or become liable, whether as endorser, guarantor, surety or otherwise, for any debt or obligation of any other Person, except: 
  
 (a) obligations of the Borrower for Taxes, assessments, municipal or other governmental charges; 
  
 (b) Subordinated Debt; 
  
 (c) Hedging Obligations incurred in favor of the Bank or an Affiliate thereof
for bona fide hedging purposes and not for speculation; 
  
 (d)
Capitalized Lease Obligations, provided that the aggregate amount of all such Debt outstanding at any time shall not exceed One Hundred Thousand and 00/100 Dollars ($100,000.00) in the aggregate; 
  
 (e) Debt for Capital Expenditures incurred after the date of this Agreement
not to exceed Two Hundred Fifty Thousand and 00/100 Dollars ($250,000.00) in the aggregate; 
  
 (f) Debt described on Schedule 8.1 and any extension, renewal or refinancing thereof so long as the principal amount thereof is not increased. 
  
 8.2 Encumbrances. The Borrower shall not, either directly or indirectly, create, assume, incur or suffer or permit to
exist any Lien or charge of any kind or character upon any asset of the Borrower, whether owned at the date hereof or hereafter acquired, except for Permitted Liens. 
  
 8.3 Investments. The Borrower shall not, either directly or indirectly, make or have outstanding any Investment,
except: 
  
 (a) Investments through the acquisition of
controlling interests in operating businesses. 
  
 (b) Investments
constituting Debt permitted by Section 8.1; 
  
 (c)
Contingent Liabilities constituting Debt permitted by Section 8.1 or Liens permitted by Section 8.2; 
  
 (d) Cash Equivalent Investments; 
  
 (e) Investments in securities of Account Debtors received pursuant to any plan of reorganization or similar arrangement upon the bankruptcy or insolvency
of such account debtors; and 
  
 (f) Investments listed on
Schedule 8.3 as of the Closing Date. 
  

 26 

 provided, however, that (i) any Investment which when made complies with the requirements of the definition of the
term “Cash Equivalent Investment” may continue to be held notwithstanding that such Investment if made thereafter would not comply with such requirements; and (ii) no Investment otherwise permitted by subsections (a) or
(c) shall be permitted to be made if, immediately before or after giving effect thereto, any Event of Default or Unmatured Event of Default exists. 
  
 8.4 Transfer; Merger; Sales. Except as approved in writing by Bank, the Borrower shall not, whether in one transaction or a series of related
transactions, (a) be a party to any merger or consolidation, or purchase or otherwise acquire all or substantially all of the assets or any Capital Securities of any class of, or any partnership or joint venture interest in, any other Person,
except for (i) any such merger, consolidation, sale, transfer, conveyance, lease or assignment of or by any Wholly-Owned Subsidiary into the Borrower or into any other domestic Wholly-Owned Subsidiary; (ii) any such purchase or other
acquisition by the Borrower or any domestic Wholly-Owned Subsidiary of the assets or equity interests of any Wholly-Owned Subsidiary, (b) unless the Obligations of the Borrower under this Agreement and the other Loan Documents are satisfied in
full at or prior to an applicable closing, sell, transfer, convey or lease all or any substantial part of its assets or Capital Securities (including the sale of Capital Securities of any Subsidiary), except for sales of Inventory in the ordinary
course of business, or (c) sell or assign, with or without recourse, any receivables. 
  
 8.5 Issuance of Capital Securities. The Borrower shall not issue any Capital Securities other than (a) any issuance of shares of the Borrower’s common Capital Securities pursuant to any employee or
director option program, benefit plan or compensation program, or (b) any issuance of Capital Securities by a Subsidiary to the Borrower or another Subsidiary in accordance with Section 8.6. Notwithstanding the foregoing, this
Section 8.5 shall not apply to the issuance of any Capital Securities by Borrower that does not materially impact (i) the Bank’s position relative to the Borrower’s other creditors nor (ii) the creditworthiness of the
Borrower as determined pursuant to the underwriting standards applied by the Bank in connection with the credit facility established by this Agreement. 
  
 8.6 Distributions. The Borrower shall not (a) purchase or redeem any of its equity interests or any warrants, options or other rights in
respect thereof in excess of Five Hundred Thousand Dollars ($500,000.00) per fiscal year of the Borrower, (b) pay any management fees or similar fees to any of its equityholders or any Affiliate thereof, (c) pay or prepay interest on,
principal of, premium, if any, redemption, conversion, exchange, purchase, retirement, defeasance, sinking fund or any other payment in respect of any Subordinated Debt, or (d) set aside funds for any of the foregoing. Notwithstanding the
foregoing, any Subsidiary may pay dividends or make other distributions to the Borrower or to a domestic Wholly-Owned Subsidiary. Further, notwithstanding anything contained herein to the contrary, the distributions otherwise permitted herein
shall be prohibited if any Event of Default or Unmatured Event of Default shall have occurred and be continuing or if after giving effect to such Distribution an Event of Default or Unmatured Event of Default shall have then occurred. 
  
 8.7 Transactions with Affiliates. The Borrower shall not, directly or
indirectly, enter into or permit to exist any transaction with any of its Affiliates or with any director, officer or employee of the Borrower other than transactions in the ordinary course of, and pursuant to the 
  

 27 

 reasonable requirements of, the business of the Borrower and upon fair and reasonable terms which are fully disclosed to
the Bank and are no less favorable to the Borrower than would be obtained in a comparable arm’s length transaction with a Person that is not an Affiliate of the Borrower. 
  
 8.8 Unconditional Purchase Obligations. The Borrower shall not enter into or be a party to any contract or contracts
(which have a combined purchase price at any time in excess of Fifty Thousand Dollars ($50,000.00) at any one time) for the purchase of materials, supplies or other property or services if such contract or contracts require that payment be made by
the Borrower regardless of whether delivery is ever made of such materials, supplies or other property or services 
  
 8.9 Cancellation of Debt. The Borrower shall not cancel any claim or debt owing to it, except for reasonable consideration or in the ordinary
course of business. 
  
 8.10 Inconsistent Agreements. The
Borrower shall not enter into any agreement containing any provision which would (a) be violated or breached by any borrowing by the Borrower hereunder or by the performance by the Borrower or any Subsidiary of any of its Obligations hereunder
or under any other Loan Document, (b) prohibit the Borrower or any Subsidiary from granting to the Bank a Lien on any of its assets or (c) create or permit to exist or become effective any encumbrance or restriction on the ability of any
Subsidiary to (i) pay dividends or make other distributions to the Borrower or any other Subsidiary, or pay any Debt owed to the Borrower or any other Subsidiary, (ii) make loans or advances to the Borrower or any other Subsidiary, or
(iii) transfer any of its assets or properties to the Borrower or any other Subsidiary, other than (A) customary restrictions and conditions contained in agreements relating to the sale of all or a substantial part of the assets of any
Subsidiary pending such sale, provided that such restrictions and conditions apply only to the Subsidiary to be sold and such sale is permitted hereunder, (B) restrictions or conditions imposed by any agreement relating to purchase money Debt,
Capital Leases and other secured Debt permitted by this Agreement if such restrictions or conditions apply only to the property or assets securing such Debt, and (C) customary provisions in leases and other contracts restricting the assignment
thereof. 
  
 8.11 Use of Proceeds. Neither the Borrower nor
any of its Subsidiaries or Affiliates shall use any portion of the proceeds of the Loans, either directly or indirectly, for the purpose of purchasing any securities underwritten by ABN AMRO Incorporated, an Affiliate of the Bank. 
  
 8.12 Bank Accounts. Other than the accounts listed on Schedule 7.16,
the Borrower shall not establish any new Deposit Accounts or other bank accounts, other than Deposit Accounts or other bank accounts established at or with the Bank, without the prior written consent of the Bank, which will not be
unreasonably withheld. 
  
 8.13 Business Activities; Change of
Legal Status and Organizational Documents. The Borrower shall not (a) engage in any line of business other than the businesses engaged in on the date hereof and businesses reasonably related thereto, (b) change its name, its
Organizational Identification Number, if it has one, its type of organization, its jurisdiction of organization or other legal structure, unless Borrower shall have provided not less than ninety (90) days prior written notice thereof to the
Bank, and executed such documents as Bank shall require to 
  

 28 

 maintain and continue the effectiveness of the Loan Documents and security interests and liens provided herein, or
(c) permit its Articles of Organization, Operating Agreement (if any) or other organizational documents to be amended or modified in any way which could reasonably be expected to materially adversely affect the interests of the Bank.

  
 Section 9 FINANCIAL COVENANTS. 
  
 9.1 Tangible Net Worth. As of the end of each of its fiscal
quarters, the Borrower shall maintain Tangible Net Worth in an amount not less than Twenty One Million and 00/100 Dollars ($21,000,000.00). 
  
 9.2 Funded Debt to EBITDA. As of the end of each fiscal quarter of the Borrower, the Borrower shall maintain a ratio of Funded Debt to EBITDA of
not greater than 2.50 to 1.00. 
  
 9.3 Debt Service Coverage
Ratio. As of the end of each fiscal quarter of the Borrower, the Borrower shall maintain a Debt Service Coverage Ratio of not less than 1.50 to 1.00. 
  
 Section 10 EVENTS OF DEFAULT. 
  
 The Borrower, without notice or demand of any kind, shall be in default under this Agreement upon the occurrence of any of the following events (each an
“Event of Default”). 
  
 10.1 Nonpayment of
Obligations. Any amount due and owing on any Note or any of the Obligations, whether by its terms or as otherwise provided herein, is not paid within the ten (10) days after the date when due. 
  
 10.2 Misrepresentation. Any oral or written warranty, representation,
certificate or statement of any Obligor in this Agreement, the other Loan Documents or any other agreement with the Bank shall be false when made or at any time thereafter in all material respects, or if any financial data or any other information
now or hereafter furnished to the Bank by or on behalf of any Obligor shall prove to be false, inaccurate or misleading in any material respect. 
  
 10.3 Nonperformance. Any failure to perform or default in the performance of any covenant, condition or agreement contained in this Agreement, or
in the other Loan Documents or any other agreement with the Bank, and, if capable of being cured, such failure to perform or default in performance continues for a period of (i) ten (10) days as to any failure or default in performance
which may be cured by the payment of money or (ii) thirty (30) days as to any other such failure or default in performance, after the Borrower receives written notice from Bank of such failure to perform or default in performance.

  
 10.4 Default under Other Debt. Any default by any
Obligor in the payment of any Debt for any other obligation (individually or in the aggregate in excess of $100,000) beyond any period of grace provided with respect thereto or in the performance of any other term, condition or covenant contained in
any agreement (including any capital or operating lease or any agreement in connection with the deferred purchase price of property) under which any such obligation is created, the effect of which default is to cause or permit the holder of such
obligation (or the other party to such other agreement) to cause such obligation to become due prior to its stated maturity or terminate such other agreement. 
  

 29 

 10.5 Other Material Obligations. Any default in the payment when due, or in the performance or
observance of, any material obligation of, or condition agreed to by, any Obligor with respect to any material purchase or lease of goods or services where such default, singly or in the aggregate with all other such defaults, might reasonably be
expected to have a Material Adverse Effect. 
  
 10.6
Bankruptcy, Insolvency, etc. Any Obligor becomes insolvent or generally fails to pay, or admits in writing its inability or refusal to pay, debts as they become due; or any Obligor applies for, consents to, or acquiesces in the appointment of
a trustee, receiver or other custodian for such Obligor or any property thereof, or makes a general assignment for the benefit of creditors; or, in the absence of such application, consent or acquiescence, a trustee, receiver or other custodian is
appointed for any Obligor or for a substantial part of the property of any Obligor and is not discharged within sixty (60) days; or any bankruptcy, reorganization, debt arrangement, or other case or proceeding under any bankruptcy or insolvency
law, or any dissolution or liquidation proceeding, is commenced in respect of any Obligor, and if such case is not commenced by such Obligor, it is consented to or acquiesced in by such Obligor, or remains undismissed for sixty (60) days; or
any Obligor takes any action to authorize, or in furtherance of, any of the foregoing. 
  
 10.7 Judgments. Except for Permitted Liens, the entry of any final judgment, decree, levy, attachment, garnishment or other process, or the filing of any Lien against any Obligor which is not fully covered by
insurance and such judgment or other process shall not have been, within thirty (30) days from the entry thereof, (i) bonded over to the satisfaction of the Bank and appealed, (ii) vacated, or (iii) discharged. 
  
 10.8 Material Adverse Effect. The occurrence of any event which has a
Material Adverse Effect on the Borrower. 
  
 Section 11 REMEDIES.

  
 Upon the occurrence of an Event of Default, the Bank
shall have all rights, powers and remedies set forth in the Loan Documents, in any written agreement or instrument (other than this Agreement or the Loan Documents) relating to any of the Obligations or as otherwise provided at law or in equity.
Without limiting the generality of the foregoing, the Bank may, at its option upon the occurrence of an Event of Default, declare its commitments to the Borrower to be terminated and all Obligations to be immediately due and payable, provided,
however, that upon the occurrence of an Event of Default under Section 10.6, all commitments of the Bank to the Borrower shall immediately terminate and all Obligations shall be automatically due and payable, all without demand, notice
or further action of any kind required on the part of the Bank. The Borrower hereby waives any and all presentment, demand, notice of dishonor, protest, and all other notices and demands in connection with the enforcement of Bank’s rights under
the Loan Documents, and hereby consents to, and waives notice of release, with or without consideration, notwithstanding anything contained herein or in the Loan Documents to the contrary. In addition to the foregoing: 
  

 30 

 11.1 UCC and Offset Rights. The Bank may exercise, from time to time, any and all rights and
remedies available to it under the UCC or under any other applicable law in addition to, and not in lieu of, any rights and remedies expressly granted in this Agreement or in any other agreements between any Obligor and the Bank, and may, without
demand or notice of any kind, appropriate and apply toward the payment of such of the Obligations, whether matured or unmatured, including costs of collection and attorneys’ and paralegals’ fees, and in such order of application as the
Bank may, from time to time, elect, any indebtedness of the Bank to any Obligor, however created or arising, including balances, credits, deposits, accounts or moneys of such Obligor in the possession, control or custody of, or in transit to the
Bank. The Borrower, on behalf of itself and each Obligor, hereby waives the benefit of any law that would otherwise restrict or limit the Bank in the exercise of its right, which is hereby acknowledged, to appropriate at any time hereafter any such
indebtedness owing from the Bank to any Obligor. 
  
 11.2
Additional Remedies. The Bank shall have the right and power to: 
  
 (a) extend, renew or modify for one or more periods (whether or not longer than the original period) any Note, any other of the Obligations, any obligation of any nature of any other Obligor with respect to any Note
or any of the Obligations; and 
  
 (b) grant releases, compromises
or indulgences with respect to any Note, any of the Obligations, any extension or renewal of any of the Obligations, any security therefor, or to any other Obligor with respect to any Note or any of the Obligations. 
  
 11.3 Attorney-in-Fact. Following the occurrence and during the
continuation of an Event of Default the Borrower hereby irrevocably makes, constitutes and appoints the Bank (and any officer of the Bank or any Person designated by the Bank for that purpose) as the Borrower’s true and lawful proxy and
attorney-in-fact (and agent-in-fact) in the Borrower’s name, place and stead, with full power of substitution, to (i) take such actions as are permitted in this Agreement and (ii) carry out any remedy provided for in this Agreement,
including, without limitation, endorsing the Borrower’s name to checks, drafts, instruments and other items of payment, executing change of address forms with the postmaster of the United States Post Office serving the address of the Borrower,
changing the address of the Borrower to that of the Bank, opening all envelopes addressed to the Borrower and applying any payments contained therein to the Obligations. The Borrower hereby acknowledges that the constitution and appointment of such
proxy and attorney-in-fact are coupled with an interest and are irrevocable. The Borrower hereby ratifies and confirms all that such attorney-in-fact may do or cause to be done by virtue of any provision of this Agreement. 
  
 11.4 No Marshaling. The Bank shall not be required to marshal any
future collateral security for or other assurances of payment of the Obligations or any of them or to resort to such collateral security or other assurances of payment in any particular order. To the extent that it lawfully may, the Borrower hereby
agrees that it will not invoke any law relating to the marshaling of collateral which might cause delay in or impede the enforcement of the Bank’s rights under this Agreement or under any other instrument creating or evidencing any of the
Obligations or under which any of the Obligations is outstanding or by which any of the Obligations is secured or payment thereof is otherwise assured, and, to the extent that it lawfully may, the Borrower hereby irrevocably waives the benefits of
all such laws. 
  

 31 

 11.5 Application of Proceeds. The Bank will within three (3) Business Days after receipt of
cash or solvent credits from collection of items of payment or any other source, apply the whole or any part thereof against the Obligations secured hereby. The Bank shall further have the exclusive right to determine how, when and what application
of such payments and such credits shall be made on the Obligations, and such determination shall be conclusive upon the Borrower. 
  
 11.6 No Waiver. No Event of Default shall be waived by the Bank except in writing. No failure or delay on the part of the Bank in exercising any
right, power or remedy hereunder shall operate as a waiver of the exercise of the same or any other right at any other time; nor shall any single or partial exercise of any such right, power or remedy preclude any other or further exercise thereof
or the exercise of any other right, power or remedy hereunder. There shall be no obligation on the part of the Bank to exercise any remedy available to the Bank in any order. The remedies provided for herein are cumulative and not exclusive of any
remedies provided at law or in equity. The Borrower agrees that in the event that the Borrower fails to perform, observe or discharge any of its Obligations or liabilities under this Agreement or any other agreements with the Bank, no remedy of law
will provide adequate relief to the Bank, and further agrees that the Bank shall be entitled to temporary and permanent injunctive relief in any such case without the necessity of proving actual damages. 
  
 Section 12 MISCELLANEOUS. 
  
 12.1 Obligations Absolute. None of the following shall affect the
Obligations of the Borrower to the Bank under this Agreement: 
  
 (a) acceptance or retention by the Bank of property or any interest in property as security for the Obligations; 
  
 (b) release by the Bank of any party liable with respect to the Obligations; or 
  
 (c) release, extension, renewal, modification or substitution by the Bank of any Note, or any note evidencing any of the
Obligations. 
  
 12.2 Entire Agreement. This Agreement and
the other Loan Documents (i) are valid, binding and enforceable against the Borrower and the Bank in accordance with their respective provisions and no conditions exist as to their legal effectiveness; (ii) constitute the entire agreement
between the parties with respect to the subject matter hereof and thereof; and (iii) are the final expression of the intentions of the Borrower and the Bank. No promises, either expressed or implied, exist between the Borrower and the Bank,
unless contained herein or therein. This Agreement, together with the other Loan Documents, supersedes all negotiations, representations, warranties, commitments, term sheets, discussions, negotiations, offers or contracts (of any kind or nature,
whether oral or written) prior to or contemporaneous with the execution hereof with respect to any matter, directly or indirectly related to the terms of this Agreement and the other Loan Documents. This Agreement and the other Loan Documents are
the result of negotiations among the Bank, the Borrower and the other parties thereto, and have been reviewed (or have had the opportunity to be reviewed) by counsel to all such parties, and are the products of all parties. Accordingly, this
Agreement and the other Loan Documents shall not be construed more strictly against the Bank merely because of the Bank’s involvement in their preparation. 
  

 32 

 12.3 Amendments; Waivers. No delay on the part of the Bank in the exercise of any right, power or
remedy shall operate as a waiver thereof, nor shall any single or partial exercise by the Bank of any right, power or remedy preclude other or further exercise thereof, or the exercise of any other right, power or remedy. No amendment, modification
or waiver of, or consent with respect to, any provision of this Agreement or the other Loan Documents shall in any event be effective unless the same shall be in writing and acknowledged by the Bank, and then any such amendment, modification, waiver
or consent shall be effective only in the specific instance and for the specific purpose for which given. 
  
 12.4 WAIVER OF DEFENSES. THE BORROWER, ON BEHALF OF ITSELF AND ANY GUARANTOR OF ANY OF THE OBLIGATIONS, WAIVES EVERY PRESENT AND FUTURE DEFENSE,
CAUSE OF ACTION, COUNTERCLAIM OR SETOFF WHICH THE BORROWER MAY NOW HAVE OR HEREAFTER MAY HAVE TO ANY ACTION BY THE BANK IN ENFORCING THIS AGREEMENT. PROVIDED THE BANK ACTS IN GOOD FAITH, THE BORROWER RATIFIES AND CONFIRMS WHATEVER THE BANK MAY DO
PURSUANT TO THE TERMS OF THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BANK GRANTING ANY FINANCIAL ACCOMMODATION TO THE BORROWER. 
  
 12.5 FORUM SELECTION AND CONSENT TO JURISDICTION. ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH THIS AGREEMENT OR
ANY OTHER LOAN DOCUMENT, SHALL BE BROUGHT AND MAINTAINED EXCLUSIVELY IN THE COURTS OF THE STATE OF MICHIGAN OR IN THE UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MICHIGAN IN LANSING, MICHIGAN; PROVIDED THAT NOTHING IN THIS AGREEMENT
SHALL BE DEEMED OR OPERATE TO PRECLUDE THE BANK FROM BRINGING SUIT OR TAKING OTHER LEGAL ACTION IN ANY OTHER JURISDICTION. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY SUBMITS TO THE JURISDICTION OF THE COURTS OF THE STATE OF MICHIGAN AND OF THE
UNITED STATES DISTRICT COURT FOR THE WESTERN DISTRICT OF MICHIGAN IN LANSING, MICHIGAN FOR THE PURPOSE OF ANY SUCH LITIGATION AS SET FORTH ABOVE. THE BORROWER FURTHER IRREVOCABLY CONSENTS TO THE SERVICE OF PROCESS BY REGISTERED MAIL, POSTAGE
PREPAID, OR BY PERSONAL SERVICE WITHIN OR WITHOUT THE STATE OF MICHIGAN. THE BORROWER HEREBY EXPRESSLY AND IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY
SUCH LITIGATION BROUGHT IN ANY SUCH COURT REFERRED TO ABOVE AND ANY CLAIM THAT ANY SUCH LITIGATION HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. 
  
 12.6 WAIVER OF JURY TRIAL. THE BANK AND THE BORROWER, AFTER CONSULTING OR HAVING HAD THE OPPORTUNITY TO CONSULT WITH COUNSEL, EACH KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVE IRREVOCABLY, ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE 
  

 33 

 OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT, ANY NOTE, ANY OTHER LOAN DOCUMENT, ANY OF THE OTHER OBLIGATIONS, OR ANY
AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH OR THEREWITH OR ARISING FROM ANY LENDING RELATIONSHIP EXISTING IN CONNECTION WITH ANY OF THE FOREGOING, OR ANY COURSE OF CONDUCT OR
COURSE OF DEALING IN WHICH THE BANK AND THE BORROWER ARE ADVERSE PARTIES, AND EACH AGREES THAT ANY SUCH ACTION OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY. THIS PROVISION IS A MATERIAL INDUCEMENT FOR THE BANK GRANTING ANY
FINANCIAL ACCOMMODATION TO THE BORROWER. 
  
 12.7
Assignability. The Bank may at any time assign the Bank’s rights in this Agreement, the other Loan Documents, the Obligations, or any part thereof. In addition, the Bank may at any time sell one or more participations in the Loans. The
Borrower may not sell or assign this Agreement, or any other agreement with the Bank or any portion thereof, either voluntarily or by operation of law, without the prior written consent of the Bank. This Agreement shall be binding upon the Bank and
the Borrower and their respective legal representatives and successors. All references herein to the Borrower shall be deemed to include any successors, whether immediate or remote. In the case of a joint venture or partnership, the term
“Borrower” shall be deemed to include all joint venturers or partners thereof, who shall be jointly and severally liable hereunder. 
  
 12.8 Confirmations. The Borrower and the Bank agree from time to time, upon written request received by it from the other, to confirm to the other
in writing the aggregate unpaid principal amount of the Loans then outstanding under such Note. 
  
 12.9 Confidentiality. The Bank agrees to use commercially reasonable efforts (equivalent to the efforts the Bank applies to maintain the
confidentiality of its own confidential information) to maintain as confidential all information provided to them by the Borrower and designated as confidential, except that the Bank may disclose such information (a) to Persons employed or
engaged by the Bank in evaluating, approving, structuring or administering the Loans; (b) to any assignee or participant or potential assignee or participant that has agreed to comply with the covenant contained in this Section 12.9
(and any such assignee or participant or potential assignee or participant may disclose such information to Persons employed or engaged by them as described in clause (a) above); (c) as required or requested by any federal or state
regulatory authority or examiner, or any insurance industry association, or as reasonably believed by the Bank to be compelled by any court decree, subpoena or legal or administrative order or process; (d) as, on the advice of the Bank’s
counsel, is required by law; (e) in connection with the exercise of any right or remedy under the Loan Documents or in connection with any litigation to which the Bank is a party; (f) to any nationally recognized rating agency that
requires access to information about the Bank’s investment portfolio in connection with ratings issued with respect to the Bank; (g) to any Affiliate of the Bank who may provide Bank Products to the Borrower or any Subsidiary, or
(h) that ceases to be confidential through no fault of the Bank. 
  
 12.10 Binding Effect. This Agreement shall become effective upon execution by the Borrower and the Bank. If this Agreement is not dated or contains any blanks when executed by the Borrower, the Bank is hereby authorized, without
notice to the Borrower, to date this Agreement as of the date when it was executed by the Borrower, and to complete any such blanks according to the terms upon which this Agreement is executed. 
  

 34 

 12.11 Governing Law. This Agreement, the Loan Documents and any Note shall be delivered and
accepted in and shall be deemed to be contracts made under and governed by the internal laws of the State of Michigan (but giving effect to federal laws applicable to national banks) applicable to contracts made and to be performed entirely within
such state, without regard to conflict of laws principles. 
  
 12.12 Enforceability. Wherever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by,
unenforceable or invalid under any jurisdiction, such provision shall as to such jurisdiction, be severable and be ineffective to the extent of such prohibition or invalidity, without invalidating the remaining provisions of this Agreement or
affecting the validity or enforceability of such provision in any other jurisdiction. 
  
 12.13 Survival of Borrower Representations. All covenants, agreements, representations and warranties made by the Borrower herein shall, notwithstanding any investigation by the Bank, be deemed material and
relied upon by the Bank and shall survive the making and execution of this Agreement and the Loan Documents and the issuance of any Note, and shall be deemed to be continuing representations and warranties until such time as the Borrower has
fulfilled all of its Obligations to the Bank, and the Bank has been indefeasibly paid in full in cash. The Bank, in extending financial accommodations to the Borrower, is expressly acting and relying on the aforesaid representations and warranties.

  
 12.14 Extensions of Bank’s Commitment. This
Agreement shall secure and govern the terms of (i) any extensions or renewals of the Bank’s commitment hereunder, and (ii) any replacement note executed by the Borrower and accepted by the Bank in its sole and absolute discretion in
substitution for any Note. 
  
 12.15 Time of Essence. Time
is of the essence in making payments of all amounts due the Bank under this Agreement and in the performance and observance by the Borrower of each covenant, agreement, provision and term of this Agreement. 
  
 12.16 Counterparts; Facsimile Signatures. This Agreement may be
executed in any number of counterparts and by the different parties hereto on separate counterparts and each such counterpart shall be deemed to be an original, but all such counterparts shall together constitute but one and the same Agreement.
Receipt of an executed signature page to this Agreement by facsimile or other electronic transmission shall constitute effective delivery thereof. Electronic records of executed Loan Documents maintained by the Bank shall be deemed to be originals
thereof. 
  
 12.17 Notices. Except as otherwise provided
herein, the Borrower waives all notices and demands in connection with the enforcement of the Bank’s rights hereunder. All notices, requests, demands and other communications provided for hereunder shall be in writing and addressed as follows:

  

			
	If to the Borrower:	  	Neogen Corporation
	 	  	620 Lesher Place
	 	  	Lansing, Michigan 48912
	 	  	Attention: Richard R. Current, Vice President and Chief Financial Officer

  

 35 

			
	 If to the Bank:
	  	 LaSalle Bank Midwest National Association

	 	  	 124 West Allegan Street

	 	  	 P.O. Box 40766

	 	  	 Lansing, Michigan 48901-7966

	 	  	 Attention: David G. Grantham

  
 or, as to each party, at such other
address as shall be designated by such party in a written notice to each other party complying as to delivery with the terms of this subsection. All notices addressed as above shall be deemed to have been properly given (i) if served in person,
upon acceptance or refusal of delivery; (ii) if mailed by certified or registered mail, return receipt requested, postage prepaid, on the third (3rd) day following the day such notice is deposited in any post office station or letter box; or (iii) if sent by recognized overnight courier, on the first (1st) day following the day such notice is delivered to such carrier. No notice to or demand on the Borrower in any case shall entitle the Borrower
to any other or further notice or demand in similar or other circumstances. 
  
 12.18 Release of Claims Against Bank. In consideration of the Bank making the Loans, the Borrower and all other Obligors do each hereby release and discharge the Bank of and from any and all claims, harm,
injury, and damage of any and every kind, known or unknown, legal or equitable, which any Obligor may have against the Bank from the date of their respective first contact with the Bank until the date of this Agreement including any claim arising
from any reports (environmental reports, surveys, appraisals, etc.) prepared by any parties hired or recommended by the Bank. The Borrower and all other Obligors confirm to Bank that they have reviewed the effect of this release with competent legal
counsel of their choice, or have been afforded the opportunity to do so, prior to execution of this Agreement and the Loan Documents and do each acknowledge and agree that the Bank is relying upon this release in extending the Loans to the Borrower.

  
 12.19 Costs, Fees and Expenses. The Borrower shall pay
or reimburse the Bank for all reasonable costs, fees and expenses incurred by the Bank or for which the Bank becomes obligated in connection with the negotiation, preparation, consummation, collection of the Obligations or enforcement of this
Agreement, the other Loan Documents and all other documents provided for herein or delivered or to be delivered hereunder or in connection herewith (including any amendment, supplement or waiver to any Loan Document), or during any workout,
restructuring or negotiations in respect thereof, including, without limitation, reasonable consultants’ fees and attorneys’ fees and time charges of counsel to the Bank, which shall also include attorneys’ fees and time charges of
attorneys who may be employees of the Bank or any Affiliate of the Bank, plus costs and expenses of such attorneys or of the Bank; search fees, costs and expenses; and all taxes payable in connection with this Agreement or the other Loan Documents,
whether or not the transaction contemplated hereby shall be 
  

 36 

 consummated. In furtherance of the foregoing, the Borrower shall pay any and all stamp and other taxes, UCC search fees,
filing fees and other costs and expenses in connection with the execution and delivery of this Agreement, any Note and the other Loan Documents to be delivered hereunder, and agrees to save and hold the Bank harmless from and against any and all
liabilities with respect to or resulting from any delay in paying or omission to pay such costs and expenses. That portion of the Obligations consisting of costs, expenses or advances to be reimbursed by the Borrower to the Bank pursuant to this
Agreement or the other Loan Documents which are not paid on or prior to the date hereof shall be payable by the Borrower to the Bank on demand. If at any time or times hereafter the Bank: (a) employs counsel for advice or other representation
(i) with respect to this Agreement or the other Loan Documents, (ii) to represent the Bank in any litigation, contest, dispute, suit or proceeding or to commence, defend, or intervene or to take any other action in or with respect to any
litigation, contest, dispute, suit, or proceeding (whether instituted by the Bank, the Borrower, or any other Person) in any way or respect relating to this Agreement, the other Loan Documents or the Borrower’s business or affairs, or
(iii) to enforce any rights of the Bank against the Borrower or any other Person that may be obligated to the Bank by virtue of this Agreement or the other Loan Documents; and/or (b) attempts to or enforces any of the Bank’s rights or
remedies under the Agreement or the other Loan Documents, the costs and expenses incurred by the Bank in any manner or way with respect to the foregoing, shall be part of the Obligations, payable by the Borrower to the Bank on demand. 
  
 12.20 Indemnification. The Borrower agrees to defend (with counsel
satisfactory to the Bank), protect, indemnify, exonerate and hold harmless each Indemnified Party from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, claims, costs, expenses and distributions
of any kind or nature (including, without limitation, the disbursements and the reasonable fees of counsel for each Indemnified Party thereto, which shall also include, without limitation, reasonable attorneys’ fees and time charges of
attorneys who may be employees of any Indemnified Party), which may be imposed on, incurred by, or asserted against, any Indemnified Party (whether direct, indirect or consequential and whether based on any federal, state or local laws or
regulations, including, without limitation, securities laws, Environmental Laws, commercial laws and regulations, under common law or in equity, or based on contract or otherwise) in any manner relating to or arising out of this Agreement or any of
the Loan Documents, or any act, event or transaction related or attendant thereto, the preparation, execution and delivery of this Agreement and the Loan Documents, including the making or issuance and management of the Loans, the use or intended
use of the proceeds of the Loans, the enforcement of the Bank’s rights and remedies under this Agreement, the Loan Documents, any Note, any other instruments and documents delivered hereunder, or under any other agreement between the Borrower
and the Bank; provided, however, that the Borrower shall not have any obligations hereunder to any Indemnified Party with respect to matters determined by a court of competent jurisdiction by final and nonappealable judgment to have been caused by
or resulting from the willful misconduct or gross negligence of such Indemnified Party. To the extent that the undertaking to indemnify set forth in the preceding sentence may be unenforceable because it violates any law or public policy, the
Borrower shall satisfy such undertaking to the maximum extent permitted by applicable law. Any liability, obligation, loss, damage, penalty, cost or expense covered by this indemnity shall be paid to each Indemnified Party on demand, and failing
prompt payment, together with interest thereon at the Default Rate from the date incurred 
  

 37 

 by each Indemnified Party until paid by the Borrower, shall be added to the Obligations of the Borrower. The provisions
of this Section 12.20 shall survive the satisfaction and payment of the other Obligations and the termination of this Agreement. 
  
 12.21 Revival and Reinstatement of Obligations. If the incurrence or payment of the Obligations by any Obligor or the transfer to the Bank of any
property should for any reason subsequently be declared to be void or voidable under any state or federal law relating to creditors’ rights, including provisions of the Bankruptcy Code relating to fraudulent conveyances, preferences, or other
voidable or recoverable payments of money or transfers of property (collectively, a “Voidable Transfer”), and if the Bank is required to repay or restore, in whole or in part, any such Voidable Transfer, or elects to do so upon the
reasonable advice of its counsel, then, as to any such Voidable Transfer, or the amount thereof that the Bank is required or elects to repay or restore, and as to all reasonable costs, expenses, and attorneys fees of the Bank, the Obligations shall
automatically shall be revived, reinstated, and restored and shall exist as though such Voidable Transfer had never been made. 
  
 12.22 Customer Identification – USA PATRIOT Act Notice. The Bank hereby notifies the Borrower that pursuant to the requirements of the USA
PATRIOT Act (Title III of Pub. L. 107-56, signed into law October 26, 2001) (the “Act”), and the Bank’s policies and practices, the Bank is required to obtain, verify and record certain information and documentation that
identifies the Borrower, which information includes the name and address of the Borrower and such other information that will allow the Bank to identify the Borrower in accordance with the Act. 
  
 [Signatures On Following Page] 
  

 38 

 IN WITNESS WHEREOF, the Borrower and the Bank have executed this Loan and Security Agreement as of the
date first above written. 
  

			
	 Borrower:

	
	 NEOGEN CORPORATION

		
	 By:
	 	 /s/ Richard R. Current

	 Name:
	 	 Richard R. Current

	 Title:
	 	 Vice President and Chief
 Financial Officer

	
	 Agreed and accepted:

	
	 Bank:

	
	 LASALLE BANK MIDWEST NATIONAL
 ASSOCIATION, a national banking
 association

		
	 By:
	 	 /s/ David G. Grantham

	 Name:
	 	 David G. Grantham

	 Title:
	 	 First Vice President

  

 39Form of Sale and Servicing Agreement

 Exhibit 4.2 
  

FORM OF 
  
 SALE AND SERVICING AGREEMENT 
  
 by and between 
  
 CAPITAL ONE AUTO FINANCE TRUST 20[ ]-[ ], 
  
 as
Issuer 
  
 CAPITAL ONE AUTO RECEIVABLES, LLC,

  
 as Seller 
  
 CAPITAL ONE AUTO FINANCE, INC., 
  
 as Servicer 
  
 and 
  
 JPMORGAN CHASE BANK, N.A. 
  
 as Indenture Trustee 
  
 Dated as of [                    ] 

 TABLE OF CONTENTS 
  

					
	 	  	 	  	Page

			
	 ARTICLE I
	  	 DEFINITIONS AND USAGE
	  	1
			
	 Section 1.1
	  	 Definitions
	  	1
			
	 Section 1.2
	  	 Other Interpretive Provisions
	  	1
			
	 ARTICLE II
	  	 CONVEYANCE OF TRANSFERRED ASSETS
	  	2
			
	 Section 2.1
	  	 Conveyance of Transferred Assets
	  	2
			
	 Section 2.2
	  	 Representations and Warranties of the Seller as to each Receivable
	  	2
			
	 Section 2.3
	  	 Repurchase upon Breach
	  	2
			
	 Section 2.4
	  	 Custody of Receivable Files
	  	3
			
	 Section 2.5
	  	 Funding Events
	  	5
			
	 Section 2.6
	  	 Certificate of Title Repurchase Event
	  	6
			
	 ARTICLE III
	  	 ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY
	  	7
			
	 Section 3.1
	  	 Duties of Servicer
	  	7
			
	 Section 3.2
	  	 Collection of Receivable Payments
	  	8
			
	 Section 3.3
	  	 Repossession of Financed Vehicles
	  	8
			
	 Section 3.4
	  	 Maintenance of Security Interests in Financed Vehicles
	  	9
			
	 Section 3.5
	  	 Covenants of Servicer
	  	9
			
	 Section 3.6
	  	 Purchase of Receivables Upon Breach
	  	10
			
	 Section 3.7
	  	 Servicing Fee
	  	10
			
	 Section 3.8
	  	 Servicer’s Certificate
	  	11
			
	 Section 3.9
	  	 Annual Officer’s Certificate; Notice of Servicer Termination Event; Compliance with Servicing Criteria
	  	11
			
	 Section 3.10
	  	 Annual Independent Public Accountants’ Reports
	  	11
			
	 Section 3.11
	  	 Servicer Expenses
	  	12
			
	 Section 3.12
	  	 Insurance
	  	12
			
	 Section 3.13
	  	 1934 Act Filings
	  	12
			
	 ARTICLE IV
	  	 DISTRIBUTIONS; ACCOUNTS STATEMENTS TO THE RESIDUAL INTERESTHOLDERS AND THE NOTEHOLDERS
	  	13
			
	 Section 4.1
	  	 Establishment of Accounts
	  	13
			
	 Section 4.2
	  	 Remittances
	  	15

  

 -i- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 Section 4.3
	  	 Additional Deposits and Payments
	  	15
			
	 Section 4.4
	  	 Distributions
	  	16
			
	 Section 4.5
	  	 Net Deposits
	  	17
			
	 Section 4.6
	  	 Statements to Noteholders and Residual Interestholders
	  	17
			
	 Section 4.7
	  	 No Duty to Confirm
	  	19
			
	 Section 4.8
	  	 Interest Rate Swap Agreement
	  	19
			
	 ARTICLE V
	  	 THE SELLER
	  	21
			
	 Section 5.1
	  	 Representations and Warranties of Seller
	  	21
			
	 Section 5.2
	  	 Liability of the Seller; Indemnities
	  	23
			
	 Section 5.3
	  	 Merger or Consolidation of, or Assumption of the Obligations of, Seller
	  	24
			
	 Section 5.4
	  	 Limitation on Liability of Seller and Others
	  	24
			
	 Section 5.5
	  	 Seller May Own Notes
	  	24
			
	 Section 5.6
	  	 Sarbanes-Oxley Act Requirements
	  	25
			
	 Section 5.7
	  	 Compliance with Organizational Documents
	  	25
			
	 Section 5.8
	  	 Perfection Representations, Warranties and Covenants
	  	25
			
	 ARTICLE VI
	  	 THE SERVICER
	  	25
			
	 Section 6.1
	  	 Representations of Servicer
	  	25
			
	 Section 6.2
	  	 Indemnities of Servicer
	  	26
			
	 Section 6.3
	  	 Merger or Consolidation of, or Assumption of the Obligations of, Servicer
	  	28
			
	 Section 6.4
	  	 Limitation on Liability of Servicer and Others
	  	28
			
	 Section 6.5
	  	 Delegation of Duties
	  	29
			
	 Section 6.6
	  	 COAF Not to Resign as Servicer
	  	29
			
	 Section 6.7
	  	 Servicer May Own Notes
	  	29
			
	 ARTICLE VII
	  	 TERMINATION OF SERVICER
	  	30
			
	 Section 7.1
	  	 Termination of Servicer
	  	30
			
	 Section 7.2
	  	 Notification to Noteholders
	  	31
			
	 ARTICLE VIII
	  	 OPTIONAL PURCHASE
	  	31
			
	 Section 8.1
	  	 Optional Purchase of Trust Estate
	  	31

  

 -ii- 

 TABLE OF CONTENTS 
 (continued) 
  

					
	 	  	 	  	Page

			
	 ARTICLE IX
	  	 THE NOTE INSURANCE POLICY
	  	31
			
	 Section 9.1
	  	 Claims Under Note Insurance Policy
	  	31
			
	 Section 9.2
	  	 Surrender of Note Insurance Policy
	  	33
			
	 ARTICLE X
	  	 MISCELLANEOUS PROVISIONS
	  	33
			
	 Section 10.1
	  	 Amendment
	  	33
			
	 Section 10.2
	  	 Protection of Title
	  	34
			
	 Section 10.3
	  	 Other Liens or Interests
	  	36
			
	 Section 10.4
	  	 Transfers Intended as Sale; Security Interest
	  	36
			
	 Section 10.5
	  	 Notices, Etc.
	  	37
			
	 Section 10.6
	  	 Choice of Law
	  	37
			
	 Section 10.7
	  	 Headings
	  	37
			
	 Section 10.8
	  	 Counterparts
	  	37
			
	 Section 10.9
	  	 Waivers
	  	37
			
	 Section 10.10
	  	 Entire Agreement
	  	37
			
	 Section 10.11
	  	 Severability of Provisions
	  	38
			
	 Section 10.12
	  	 Binding Effect
	  	38
			
	 Section 10.13
	  	 Acknowledgment and Agreement
	  	38
			
	 Section 10.14
	  	 Cumulative Remedies
	  	38
			
	 Section 10.15
	  	 Nonpetition Covenant
	  	38
			
	 Section 10.16
	  	 Submission to Jurisdiction; Waiver of Jury Trial
	  	39
			
	 Section 10.17
	  	 Limitation of Liability
	  	39
			
	 Section 10.18
	  	 Third-Party Beneficiaries
	  	40
			
	 Section 10.19
	  	 Limitation of Rights
	  	40
			
	 Section 10.20
	  	 Regulation AB
	  	40

  

			
	 Schedule I
	  	 Representations and Warranties

	 Schedule II
	  	 Notice Addresses

		
	 Exhibit A
	  	 Form of Notice of Funding Date

	 Exhibit B
	  	 Form of Joint Officer’s Certificate

	 Exhibit C
	  	 Form of Assignment pursuant to Sale and Servicing Agreement

	 Exhibit D
	  	 Form of Servicer’s Certificate

	 Exhibit E
	  	 Perfection Representations, Warranties and Covenants

	 Appendix A
	  	 Definitions

  

 -iii- 

 SALE AND SERVICING AGREEMENT, dated as of
[                ] (as amended, supplemented or otherwise modified and in effect from time to time, this “Agreement”), by and between CAPITAL ONE AUTO
FINANCE TRUST 20[     ]-[    ], a Delaware statutory trust (the “Issuer”), CAPITAL ONE AUTO RECEIVABLES, LLC, a Delaware limited liability company, as seller (the “Seller”),
CAPITAL ONE AUTO FINANCE, INC., a Texas corporation (“COAF”), as servicer (in such capacity, the “Servicer”), and JPMORGAN CHASE BANK, N.A., a banking association organized under the laws of the United States, as
indenture trustee (the “Indenture Trustee”). 
  
 WHEREAS, the Issuer desires to purchase from the Seller a portfolio of motor vehicle receivables, including motor vehicle retail installment sales contracts and/or installment loans that are secured by new and used automobiles and
light-duty trucks; 
  
 WHEREAS, the Seller is willing to sell such
portfolio of motor vehicle receivables and related property to the Issuer; and 
  
 WHEREAS, COAF is willing to service such motor vehicle receivables and related property on behalf of the Issuer; 
  
 NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows: 
  
 ARTICLE I 
 DEFINITIONS AND USAGE 
  
 SECTION 1.1 Definitions. Except as otherwise specified herein or as
the context may otherwise require, capitalized terms used but not otherwise defined herein are defined in Appendix A hereto, which also contains rules as to usage that are applicable herein. 
  
 SECTION 1.2 Other Interpretive Provisions. For purposes of this
Agreement, unless the context otherwise requires: (a) accounting terms not otherwise defined in this Agreement, and accounting terms partly defined in this Agreement to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles; (b) terms defined in Article 9 of the UCC as in effect in the relevant jurisdiction and not otherwise defined in this Agreement are used as defined in that Article; (c) the words
“hereof,” “herein” and “hereunder” and words of similar import refer to this Agreement as a whole and not to any particular provision of this Agreement; (d) references to any Article, Section, Schedule, Appendix or
Exhibit are references to Articles, Sections, Schedules, Appendices and Exhibits in or to this Agreement and references to any paragraph, subsection, clause or other subdivision within any Section or definition refer to such paragraph, subsection,
clause or other subdivision of such Section or definition; (e) the term “including” means “including without limitation”; (f) except as otherwise expressly provided herein, references to any law or regulation refer to
that law or regulation as amended from time to time and include any successor law or regulation; (g) references to any Person include that Person’s successors and assigns; and (h) headings are for purposes of reference only and shall
not otherwise affect the meaning or interpretation of any provision hereof. 

 ARTICLE II 
 CONVEYANCE OF TRANSFERRED ASSETS 
  
 SECTION 2.1 Conveyance of Transferred Assets. (a) In consideration of the Issuer’s sale and delivery to, or upon the order of, the Seller of all of the Notes and the Residual Interest on the Closing Date, the Seller does
hereby irrevocably sell, transfer, assign and otherwise convey to the Issuer without recourse (subject to the obligations herein) all right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under the Initial
Transferred Assets, identified in an Assignment substantially in the form of Exhibit C delivered on the Closing Date. The sale, transfer, assignment and conveyance made hereunder does not constitute and is not intended to result in an
assumption by the Issuer of any obligation of the Seller or any Originator to the Obligors, the Dealers or any other Person in connection with the Receivables or the other assets and properties conveyed hereunder or any agreement, document or
instrument related thereto. 
  
 (b) In consideration of the
payment of the Receivables Purchase Price from the Pre-Funding Account, on each Funding Date the Seller does hereby sell, transfer, assign, and otherwise convey to the Issuer without recourse (subject to the obligations herein) all right, title and
interest of the Seller, whether now owned or hereafter acquired, in, to and under the Subsequent Transferred Assets, identified in an Assignment substantially in the form of Exhibit C delivered on such Funding Date. The purchase of the
Subsequent Transferred Assets on each Funding Date shall be made in accordance with the Purchase Agreement and this Agreement. The sale, transfer, assignment and conveyance made hereunder does not constitute and is not intended to result in an
assumption by the Issuer of any obligation of the Seller or any Originator to the Obligors, the Dealers or any other Person in connection with the Receivables or the other assets and properties conveyed hereunder or any agreement, document or
instrument related thereto. 
  
 SECTION 2.2 Representations and
Warranties of the Seller as to each Receivable. On the date hereof, with respect to the Initial Receivables, or on each Funding Date, with respect to the Subsequent Receivables, the Seller hereby makes the representations and warranties set
forth on Schedule I to the Issuer, the Indenture Trustee and the Note Insurer as to the Initial Receivables and Subsequent Receivables, as applicable, sold, transferred, assigned, and otherwise conveyed to the Issuer under this Agreement on
which such representations and warranties the Issuer relies in acquiring the Receivables. The representations and warranties as to each Receivable shall survive the Grant of the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture. Notwithstanding any statement to the contrary contained herein or in any other Transaction Document, the Seller shall not be required to notify any insurer with respect to any Insurance Policy obtained by an Obligor. 
  
 SECTION 2.3 Repurchase upon Breach. Upon discovery by any party hereto
of a breach of any of the representations and warranties set forth in Section 2.2 with respect to any Receivable at the time such representations and warranties were made which materially and adversely affects the interests of the
Issuer, the Note Insurer or the Noteholders in such Receivable, the party discovering such breach shall give prompt written notice thereof to the other parties hereto; provided, that delivery of the Servicer’s Certificate shall be deemed
to constitute prompt notice by the Servicer and the Issuer of such breach; provided, further, that the 

  

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failure to give such notice shall not affect any obligation of the Seller hereunder. If the breach materially and adversely affects the interests of the
Issuer, the Note Insurer or the Noteholders in such Receivable, then the Seller shall either (a) correct or cure such breach or (b) repurchase such Receivable from the Issuer, in either case on or before the Payment Date following the end
of the Collection Period which includes the 60th day after the date the Seller became aware or was notified of such
breach. Any such purchase by the Seller shall be at a price equal to the Repurchase Price. In consideration for such repurchase, the Seller shall make (or shall cause to be made) a payment to the Issuer equal to the Repurchase Price by depositing
such amount into the Collection Account prior to noon, New York City time on such date of repurchase. Upon payment of such Repurchase Price by the Seller, the Indenture Trustee, on behalf of the Indenture Secured Parties, and the Issuer shall
release and shall execute and deliver such instruments of release, transfer or assignment, in each case without recourse or representation, as may be reasonably requested by the Seller to evidence such release, transfer or assignment or more
effectively vest in the Seller or its designee all of the Issuer’s and Indenture Trustee’s rights in any Receivable and related Transferred Assets repurchased pursuant to this Section 2.3. It is understood and agreed that,
unless the Seller fails to repurchase (or fails to enforce the obligation of COAF under the Purchase Agreement to repurchase) any Receivable as described above, the right to cause the Seller to repurchase (or to enforce the obligations of COAF under
the Purchase Agreement to repurchase) any Receivable as described above shall constitute the sole remedy respecting such breach available to the Issuer, the Note Insurer and the Indenture Trustee. Neither the Owner Trustee nor the Indenture Trustee
will have any duty to conduct an affirmative investigation as to the occurrence of any condition requiring the repurchase of any Receivable pursuant to this Section 2.3. 
  
 SECTION 2.4 Custody of Receivable Files. 
  
 (a) Custody. The Issuer and the Indenture Trustee, upon the execution and delivery of this Agreement, hereby
revocably appoint the Servicer, and the Servicer hereby accepts such appointment, to act as the agent of the Issuer and the Indenture Trustee as custodian of the following documents or instruments, which are hereby or will hereby be constructively
delivered to the Indenture Trustee (or its agent or designee), as pledgee of the Issuer pursuant to the Indenture with respect to each Receivable (but only to the extent applicable to such Receivable and only to the extent held in tangible paper or
electronic form) (the “Receivable Files”): 
  
 (i) the fully executed original, electronically authenticated original or authoritative copy of the Contract (in each case within the meaning of the UCC) related to such Receivable, including any written amendments or
extensions thereto; 
  
 (ii) the original credit
application or a photocopy thereof to the extent held in paper form; 
  
 (iii) the original Certificate of Title or, if not yet received, evidence that an application therefore has been submitted with the appropriate authority, a guaranty of title from a Dealer or such other document
(electronic or otherwise, as used in the applicable jurisdiction) that the Servicer keeps on file, in accordance with its Customary Servicing Practices, evidencing the security interest of the applicable Originator in the 

  

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Financed Vehicle; provided, however, that in lieu of being held in the Receivable File, the Certificate of Title may be held by a third party
service provider engaged by the Servicer to obtain and/or hold Certificates of Title; and 
  
 (iv) any and all other documents that the Servicer keeps on file, in accordance with its Customary Servicing Practices, relating to a
Receivable, an Obligor or a Financed Vehicle. 
  
 (b)
Safekeeping. The Servicer, in its capacity as custodian, shall hold the Receivable Files for the benefit of the Issuer, the Note Insurer and the Indenture Trustee. In performing its duties as custodian, the Servicer shall act in accordance
with its Customary Servicing Practices. In accordance with its Customary Servicing Practices, the Servicer will conduct, or cause to be conducted, periodic audits of the Receivable Files held by it under this Agreement, and of the related accounts,
records, and computer systems, in such a manner as would enable the Issuer, the Note Insurer or the Indenture Trustee to verify the accuracy of the Servicer’s record keeping. The Servicer will promptly report to the Issuer, the Note Insurer and
the Indenture Trustee any failure on its part to hold a material portion of the Receivable Files, maintain its accounts, records, and computer systems as herein provided or promptly take appropriate action to remedy any such failure. Nothing herein
will be deemed to require an initial review or any periodic review by the Issuer, the Note Insurer or the Indenture Trustee of the Receivable Files. The Servicer may, in accordance with its Customary Servicing Practices, (i) maintain all or a
portion of the Receivable Files in electronic form and (ii) maintain custody of all or any portion of the Receivable Files with one or more of its agents or designees. 
  
 (c) Maintenance of and Access to Records. The Servicer will maintain each Receivable File at one of its offices in
the United States, or at such other location as specified to the Issuer, the Note Insurer and the Indenture Trustee by written notice not later than ninety (90) days after any change in location (it being understood that the Receivable Files,
or any part thereof, may be maintained at the offices of any Person to whom the Servicer has delegated responsibilities in accordance with Section 6.5). The Servicer will make available to the Issuer, the Note Insurer and the Indenture
Trustee or their duly authorized representatives, attorneys or auditors a list of locations of the Receivable Files upon request. The Servicer will provide access to the Receivable Files, and the related accounts records, and computer systems
maintained by the Servicer at such times as the Issuer, the Note Insurer or the Indenture Trustee direct, but only upon reasonable notice and during the normal business hours at the respective offices of the Servicer. 
  
 (d) Release of Documents. Upon written instructions from the Indenture
Trustee, the Servicer will release or cause to be released any document in the Receivable Files to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at such place or places as the
Indenture Trustee may designate, as soon thereafter as is practicable. Any document so released will be handled by the Indenture Trustee with due care and returned to the Servicer for safekeeping as soon as the Indenture Trustee or its agent or
designee, as the case may be, has no further need therefor. 
  
 (e) Instructions; Authority to Act. All instructions from the Indenture Trustee will be in writing and signed by an Authorized Officer of the Indenture Trustee, and the Servicer 

  

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will be deemed to have received proper instructions with respect to the Receivable Files upon its receipt of such written instructions. 
  
 (f) Custodian’s Indemnification. Subject to
Section 6.2, the Servicer as custodian will indemnify the Issuer, the Note Insurer and the Indenture Trustee for any and all liabilities, obligations, losses, compensatory damages, payments, costs or expenses of any kind whatsoever that
may be imposed on, incurred by or asserted against the Issuer, the Note Insurer or the Indenture Trustee as the result of any improper act or omission in any way relating to the maintenance and custody by the Servicer as custodian of the Receivable
Files; provided, however, that the Servicer will not be liable to (i) the Issuer, the Indenture Trustee or the Note Insurer for any portion of any such amount resulting from the willful misconduct, bad faith or negligence of the
Indenture Trustee, the Note Insurer or the Issuer, respectively, or (ii) the Indenture Trustee for any portion of any such amount resulting from the failure of the Indenture Trustee, the Indenture Trustee’s agent or the Indenture
Trustee’s designee to handle with due care any Certificate of Title or other document released to the Indenture Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee pursuant to Section 2.4(d).

  
 (g) Effective Period and Termination. The
Servicer’s appointment as custodian will become effective as of the Initial Cut-Off Date and will continue in full force and effect until terminated pursuant to this Section. If COAF resigns as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer have been terminated under Section 7.1, the appointment of the Servicer as custodian hereunder may be terminated by the Indenture Trustee or by the Controlling Party, in
the same manner as the Indenture Trustee or the Controlling Party may terminate the rights and obligations of the Servicer under Section 7.1. After any termination of such appointment, the Servicer will promptly deliver to the Indenture
Trustee or the Indenture Trustee’s agent the Receivable Files and the related accounts and records maintained by the Servicer at such place or places as the Indenture Trustee or the Controlling Party may reasonably designate. 
  
 SECTION 2.5 Funding Events. 
  
 (a) A funding event (each, a “Funding Event”) shall occur
upon a Funding Date and in accordance with the requirements of this Section. 
  
 (b) During the Funding Period, the Issuer shall, on the Funding Dates, (i) acquire Subsequent Transferred Assets from the Seller pursuant to Section 2.1(b) (and the Seller shall acquire such
Subsequent Transferred Assets from COAF pursuant to the Purchase Agreement) and (ii) Grant all of the Issuer’s right, title and interest in, to and under such Subsequent Transferred Assets to the Indenture Trustee for the benefit of the
Indenture Secured Parties. Such Subsequent Transferred Assets shall be acquired at the option of the Issuer upon instruction from the Servicer; provided that such Subsequent Transferred Assets may not be acquired through the Pre-Funding
Account without the consent of the Note Insurer; provided, however, that the giving or withholding of such consent shall be based solely on the characteristics of the Subsequent Transferred Assets in relation to the Initial Transferred
Assets. 
  
 (c) The following procedures shall be followed to
effect a Funding Event: 
  
 (i) COAF will package
and forward or cause to be packaged and forwarded to the Servicer (in the event that COAF is not the Servicer) the Receivables File with respect to each Subsequent Receivable. 
  

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 (ii) At least three (3) days prior to the Funding Date, the Issuer shall deliver, or
cause to be delivered, to the Indenture Trustee, the Servicer and the Note Insurer a Notice of Funding Date (substantially in the form of Exhibit A hereto); and 
  
 (iii) On or prior to the Funding Date, the Issuer shall deliver, or cause to be delivered, to the Indenture
Trustee, the Servicer and the Note Insurer the following: 
  
 (1) the Schedule of Receivables delivered by the Seller for such Funding Date; and 
  
 (2) a Joint Officer’s Certificate of COAF, the Seller and the Issuer (substantially in the form of Exhibit B hereto).

  
 (d) Upon satisfaction of the above requirements, the Indenture
Trustee will, on the applicable Funding Date, withdraw from the Pre-Funding Account an amount equal to the Receivables Purchase Price for the Subsequent Receivables acquired on such Funding Date and shall forward such funds (less amounts required to
be deposited into the Reserve Account as described below) to the Seller (or to COAF on behalf of the Seller) or its designee, in cash by federal wire transfer funds, pursuant to the written directions provided to the Indenture Trustee in the Notice
of Funding Date. The Indenture Trustee, on behalf of the Seller, shall deposit into the Reserve Account from amounts which would otherwise be released to the Seller from the Pre-Funding Account, an amount equal to the Subsequent Reserve Account
Deposit Amount for such Funding Date. 
  
 SECTION 2.6
Certificate of Title Repurchase Event. The Servicer shall inform the Issuer, the Seller, the Note Insurer, the Indenture Trustee and the Swap Counterparty promptly, in writing, upon the occurrence of the day that is 10 Business Days prior to
the First Title Delivery Date of each Receivable for which no Certificate of Title has been delivered to the Servicer or its agent as of such day. Upon the occurrence of a Certificate of Title Repurchase Event with respect to any Receivable, the
Seller shall purchase such Receivable from the Issuer on any date occurring on or before the Payment Date following the end of the Collection Period during which such Certificate of Title Repurchase Event occurs. Any such purchase by the Seller
shall be at a price equal to the Repurchase Price. In consideration for such repurchase, the Seller shall make (or shall cause to be made) a payment to the Issuer equal to the Repurchase Price by depositing such amount into the Collection Account
prior to noon, New York City time on such date of repurchase. Upon payment of such Repurchase Price by the Seller, the Indenture Trustee, on behalf of the Indenture Secured Parties, and the Issuer shall release and shall execute and deliver such
instruments of release, transfer or assignment, in each case without recourse or representation, as may be reasonably requested by the Seller to evidence such release, transfer or assignment or more effectively vest in the Seller or its designee all
of the Issuer’s and Indenture Trustee’s rights in any Receivable and related Transferred Assets repurchased pursuant to this Section 2.6. It is understood and agreed that, unless the Seller fails to repurchase (or fails to
enforce the obligation of COAF under the Purchase Agreement to repurchase) any Receivable as 

  

 6 

 
described above, the right to cause the Seller to repurchase (or to enforce the obligations of COAF under the Purchase Agreement to repurchase) any
Receivable as described above shall constitute the sole remedy with respect to a Certificate of Title Repurchase Event available to the Issuer, the Note Insurer and the Indenture Trustee. Neither the Owner Trustee nor the Indenture Trustee will have
any duty to conduct an affirmative investigation as to the occurrence of any condition requiring the repurchase of any Receivable pursuant to this Section 2.6. 
  
 ARTICLE III 
 ADMINISTRATION AND SERVICING OF 
 RECEIVABLES AND TRUST PROPERTY 
  
 SECTION 3.1 Duties of Servicer. 
  
 (a) The Servicer is hereby appointed by the Issuer and authorized to act as agent for the Issuer and in such capacity shall
manage, service, administer and make collections on the Receivables, and perform the other actions required by the Servicer under this Agreement. The Servicer agrees that its servicing of the Receivables will be carried out in accordance with its
Customary Servicing Practices, using the degree of skill and attention that the Servicer exercises with respect to all comparable motor vehicle receivables that it services for itself or others. The Servicer’s duties will include collection and
posting of all payments, responding to inquiries of Obligors on such Receivables, investigating delinquencies, sending invoices or payment coupons to Obligors, reporting any required tax information to Obligors, accounting for collections and
furnishing monthly and annual statements to the Indenture Trustee and the Note Insurer with respect to distributions and performing the other duties specified herein. The Servicer hereby accepts such appointment and authorization and agrees to
perform the duties of Servicer with respect to the Receivables set forth herein. 
  
 (b) The Servicer will follow its Customary Servicing Practices and will have full power and authority to do any and all things in connection with such managing, servicing, administration and collection that it may
deem necessary or desirable. Without limiting the generality of the foregoing, the Servicer is hereby authorized and empowered to execute and deliver, on behalf of itself, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Note Insurer, the Residual Interestholders, or any of them, any and all instruments of satisfaction or cancellation, or partial or full release or discharge, and all other comparable instruments, with respect to such Receivables or to the Financed
Vehicles securing such Receivables. The Servicer is hereby authorized to commence, in its own name or in the name of the Issuer, a legal proceeding to enforce a Receivable or to commence or participate in any other legal proceeding (including a
bankruptcy proceeding) relating to or involving a Receivable, an Obligor or a Financed Vehicle. If the Servicer commences a legal proceeding to enforce a Receivable, the Issuer will thereupon be deemed to have automatically assigned such Receivable
to the Servicer solely for purposes of commencing or participating in any such proceeding as a party or claimant, and the Servicer is authorized and empowered by the Issuer to execute and deliver in the Servicer’s name any notices, demands,
claims, complaints, responses, affidavits or other documents or instruments in connection with any such proceeding. If in any enforcement suit or legal proceeding it is held that the Servicer may not enforce a Receivable on the ground that it is not
a real party in interest or a holder entitled to enforce the Receivable, the Issuer will, at the Servicer’s expense and direction, take steps to enforce the Receivable, including bringing 

  

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suit in its name or the name of the Indenture Trustee. The Issuer will furnish the Servicer with any powers of attorney and other documents reasonably
necessary or appropriate to enable the Servicer to carry out its servicing and administrative duties hereunder. The Servicer, at its expense, will obtain on behalf of the Issuer all licenses, if any, required by the laws of any jurisdiction to be
held by the Issuer in connection with ownership of the Receivables, and will make all filings and pay all fees as may be required in connection therewith during the term hereof. 
  
 (c) The Servicer hereby agrees that upon its resignation and the appointment of a successor Servicer hereunder, the Servicer
will terminate its activities as Servicer hereunder in accordance with Section 7.1, and, in any case, in a manner which the Controlling Party or the Indenture Trustee with the consent of the Controlling Party reasonably determines will
facilitate the transition of the performance of such activities to such successor Servicer, and the Servicer shall cooperate with and assist such successor Servicer. 
  
 (d) So long as no Note Insurer Default has occurred and is continuing, the Servicer shall not change its Customary Servicing
Practices without the consent of the Note Insurer if the Servicer determines that such a change would have a material adverse effect on the interests of the Note Insurer or the Noteholders. 
  
 SECTION 3.2 Collection of Receivable Payments. The Servicer will make
reasonable efforts to collect all payments called for under the terms and provisions of the Receivables as and when the same become due in accordance with its Customary Servicing Practices and will otherwise act with respect to the Receivables and
the Insurance Policies in such manner as will, in the reasonable judgment of the Servicer, maximize the net amount to be received by the Issuer with respect thereto. Subject to Section 3.5, the Servicer may grant extensions, rebates,
deferrals, amendments, modifications or adjustments with respect to any Receivable in accordance with its Customary Servicing Practices; provided, however, that if the Servicer extends the date for final payment by the Obligor of any
Receivable (an “Extension”) beyond the last day of the Collection Period immediately prior to the Class A-4 Final Scheduled Payment Date, it will promptly purchase such Receivable in the manner provided in
Section 3.6; provided, further, however, that in any given three (3) month period, the average percentage of Receivables that have been the subject of an Extension during each of those three months (by number of Receivables
at the beginning of each month) shall not exceed [4.00]% (or such other percentage as may be agreed to by the Controlling Party). The Servicer may in its discretion waive any late payment charge or any other fees that may be collected in the
ordinary course of servicing a Receivable. Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any Receivable by accepting a new promissory note from the related Obligor and depositing the full outstanding
Principal Balance of such Receivable plus any accrued interest on such Receivable into the Collection Account. The receivable created by such refinancing shall not be property of the Issuer. 
  
 SECTION 3.3 Repossession of Financed Vehicles. On behalf of the
Issuer, the Servicer will use commercially reasonable efforts, consistent with its Customary Servicing Practices, to repossess or otherwise convert the ownership of and liquidate the Financed Vehicle securing any Receivable as to which the Servicer
has determined eventual payment in full is unlikely; provided, however, that the Servicer may elect not to repossess a Financed Vehicle if in 

  

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its good faith judgment it determines that repossession will not increase the amounts described in clauses (a) through (c) of the definition of
Liquidation Proceeds by an amount greater than the expense of such repossession or that the proceeds ultimately recoverable with respect to such Receivable would be increased by forbearance. The Servicer is authorized as it deems necessary or
advisable, consistent with its Customary Servicing Practices, to make reasonable efforts to realize upon any recourse to any Dealer and selling the related Financed Vehicle at public or private sale. The foregoing will be subject to the provision
that, in any case in which the Financed Vehicle has suffered damage, the Servicer shall not be required to expend funds in connection with the repair or the repossession of such Financed Vehicle unless it determines in its sole discretion that such
repair and/or repossession will increase the amounts described in clauses (a) through (c) of the definition of Liquidation Proceeds with respect to such Financed Vehicle by an amount greater than the amount of such expenses. 
  
 SECTION 3.4 Maintenance of Security Interests in Financed Vehicles.
The Servicer will, in accordance with its Customary Servicing Practices, take such steps as are necessary to maintain perfection of the security interest created by each Receivable in the related Financed Vehicle. The Issuer hereby authorizes the
Servicer to take such steps as are necessary to re-perfect such security interest on behalf of the Issuer and the Indenture Trustee in the event of the relocation of a Financed Vehicle or for any other reason. 
  
 SECTION 3.5 Covenants of Servicer. 
  
 (a) Lien in Force. The Servicer will not (i) release the Financed
Vehicle securing each such Receivable from the security interest granted by such Receivable in whole or in part except in the event of payment in full by or on behalf of the Obligor thereunder or payment in full less a deficiency which the Servicer
would not attempt to collect in accordance with its Customary Servicing Practices or in connection with repossession or except as may be required by an insurer in order to receive proceeds from any Insurance Policy covering such Financed Vehicle or
(ii) reduce the Contract Rate with respect to any Receivable other than as required by applicable law or (iii) reduce the Principal Balance with respect to any Receivable other than (A) as required by applicable law, (B) in
connection with a settlement in the event the Receivable becomes a Defaulted Receivable or (C) in connection with a Cram Down Loss relating to such Receivable. 
  
 (b) No Impairment. The Servicer will do nothing to materially impair the rights of the Issuer, the Indenture Trustee
or the Noteholders in the Receivables or the Insurance Policies except as otherwise expressly provided in the Transaction Documents. 
  
 (c) Restrictions on Liens. The Servicer will not (i) create, incur or suffer to exist, or agree to create, incur or suffer to exist, or
consent to cause or permit in the future (upon the happening of a contingency or otherwise) the creation, incurrence or existence of any Lien or restriction on transferability of the Receivables except for the lien in favor of the Indenture Trustee
for the benefit of the Indenture Secured Parties, and the restrictions on transferability imposed by this Agreement or (ii) file or authorize for filing under the UCC of any jurisdiction any financing statement which names the Servicer as a
debtor, or sign any security agreement authorizing any secured party thereunder to file such financing statement, with respect to the 

  

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Receivables, except in each case any such instrument solely securing the rights and preserving the lien of the Indenture Trustee for the benefit of the
Indenture Secured Parties. 
  
 SECTION 3.6 Purchase of
Receivables Upon Breach. Upon discovery by any party hereto of a breach of any of the obligations set forth in Section 3.2, 3.3, 3.4 or 3.5 which materially and adversely affects the interests of the Issuer, the
Note Insurer, the Indenture Trustee or the Noteholders in any Receivable, the party discovering such breach shall give prompt written notice thereof to the other parties hereto; provided, that the delivery of the Servicer’s Certificate
shall be deemed to constitute prompt notice by the Servicer and the Issuer of such breach; provided, further, that the failure to give such notice shall not affect any obligation of the Servicer under this Section 3.6. If the
breach materially and adversely affects the interests of the Issuer, the Note Insurer or the Noteholders in such Receivable, then the Servicer shall either (a) correct or cure such breach or (b) purchase such Receivable from the Issuer, in
either case on or before the Payment Date following the end of the Collection Period which includes the 60th day
after the date the Servicer became aware or was notified of such breach. Any such purchase by the Servicer shall be at a price equal to the Repurchase Price. In consideration for such repurchase, the Servicer shall make (or shall cause to be made) a
payment to the Issuer equal to the Repurchase Price by depositing such amount into the Collection Account prior to noon, New York City time on such date of repurchase. Upon payment of such Repurchase Price by the Servicer, the Indenture Trustee, on
behalf of the Indenture Secured Parties, and the Issuer shall release and shall execute and deliver such instruments of release, transfer or assignment, in each case without recourse or representation, as may be reasonably requested by the Seller to
evidence such release, transfer or assignment or more effectively vest in the Servicer or its designee all of the Issuer’s and Indenture Trustee’s rights in any Receivable and related Transferred Assets repurchased pursuant to this
Section 3.6. It is understood and agreed that, unless the Servicer fails to purchase any Receivable as described above, the obligation of the Servicer to purchase any Receivable as described above shall constitute the sole remedy
respecting such breach available to the Issuer, the Note Insurer, the Swap Counterparty and the Indenture Trustee; provided, however, that the Servicer will indemnify the Issuer, the Note Insurer, the Owner Trustee, the Indenture Trustee and
the Noteholders from and against all costs, expenses, losses, damages, claims and liabilities, including reasonable fees and expenses of counsel, which may be asserted against or incurred by any of them as a result of third party claims arising out
of the events or facts giving rise to such breach. The indemnification provided pursuant to this section will survive the removal or resignation of the Servicer, the Note Insurer, the Swap Counterparty and /or the Indenture Trustee. 
  
 SECTION 3.7 Servicing Fee. On each Payment Date, the Issuer shall pay
to the Servicer the Servicing Fee in accordance with Section 4.4 for the immediately preceding Collection Period as compensation for its services. In addition, the Servicer will be entitled to retain all Supplemental Servicing Fees. The
Servicer will be required to pay all expenses incurred by it in connection with its activities under this Agreement (including taxes imposed on the Servicer, expenses incurred in connection with distributions and reports made by the Servicer to
Noteholders or the Note Insurer and, to the extent not provided for pursuant to Section 4.4, all other fees and out-of-pocket expenses of the Owner Trustee and the Indenture Trustee, except taxes levied or assessed against the Issuer,
the Owner Trustee or the Indenture Trustee, and claims against the Issuer, the Owner Trustee, or the Indenture Trustee in respect of indemnification, which taxes and claims in respect of indemnification against the Issuer are 

  

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expressly stated to be for the account of COAF). Notwithstanding the foregoing, if the Servicer is not COAF, a successor to COAF as Servicer will not be
liable for taxes levied or assessed against the Issuer or claims against the Issuer in respect of indemnification, the fees referred to above and expenses referred to above. 
  
 SECTION 3.8 Servicer’s Certificate. On the Determination Date preceding each Payment Date, the Servicer shall
deliver to the Indenture Trustee and each Paying Agent, with a copy to each of the Rating Agencies, the Swap Counterparty and the Note Insurer, a Servicer’s Certificate in substantially the form set forth in Exhibit D. At the sole
option of the Servicer, each Servicer’s Certificate may be delivered in electronic or hard copy format. 
  
 SECTION 3.9 Annual Officer’s Certificate; Notice of Servicer Termination Event; Compliance with Servicing Criteria. (a) The Servicer will
deliver to the Rating Agencies, the Swap Counterparty, the Issuer, the Indenture Trustee and the Note Insurer, on or before March 30 of each year, beginning on March 30,
[            ], an Officer’s Certificate of the Servicer (with appropriate insertions) providing such information as is required under Item 1123 of Regulation AB. 
  
 (b) The Servicer will deliver to the Issuer, the Swap Counterparty, the Note
Insurer, the Indenture Trustee and each Rating Agency promptly after having obtained knowledge thereof, but in no event later than five (5) Business Days after having obtained such knowledge, written notice in an Officer’s Certificate of
any event which with the giving of notice or lapse of time, or both, would become a Servicer Termination Event. 
  
 (c) The Servicer will deliver to the Issuer, on or before March 30 of each year, beginning on March 30,
[            ], a report regarding the Servicer’s assessment of compliance with the Servicing Criteria during the immediately preceding calendar year, as required under Rules 13a-18
and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. 
  
 SECTION 3.10 Annual Independent Public Accountants’ Reports. 
  
 (a) The Servicer shall cause a firm of independent certified public accountants, who may also render other services to the Servicer or to its Affiliates, to deliver to the Rating Agencies, the Swap Counterparty, the
Issuer, the Indenture Trustee and the Note Insurer on or before March 30 of each year, beginning March 30, 2006, a report addressed to the board of directors of the Servicer, providing such information as is required under
Item 1122(b) of Regulation AB. 
  
 (b) The Servicer shall
cause a firm of independent certified public accountants, who may also render other services to the Servicer or to its Affiliates, to deliver to the Rating Agencies, the Swap Counterparty and the Note Insurer upon receipt of covenants and
representations from such Persons as such firm of independent certified public accountants may require, and as soon as practicable, but in any event within 120 days after the end of each fiscal year, an annual review of the Servicer’s
procedures and operations in form and substance reasonably satisfactory to the Note Insurer, prepared by such firm of independent certified public accountants, dated as of March 30 of each year beginning March 30, 2006 and substantially
stating to the effect that (i) such accountants have examined the accounts and records of the 

  

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Servicer relating to the Trust Estate (which records shall be described in one or more schedules to such statement), (ii) such firm has compared the
information contained in certain Servicer’s Certificates delivered in the relevant period with information contained in the accounts and records of other relevant source documents for such period, and (iii) on the basis of the procedures
performed, whether the information examined and contained in such Servicer’s Certificates delivered for the relevant period reconciles and agrees with the information contained in such accounts and records or other relevant source documents
except for such exceptions as such firm of independent certified public accountants believe to be immaterial and such other exceptions as shall be set forth in such statement. 
  
 (c) The Servicer, however, shall not be obligated to deliver any report described in clauses (a) or (b) above to
any Person who does not comply with or agree to the required procedures of such firm of independent certified public accountants, including but not limited to execution of engagement letters or access letters regarding such reports. The Servicer
acknowledges that any costs, expenses or liabilities of the Indenture Trustee incurred in connection with the execution of any documents required by the firm of independent certified public accountants shall be covered by the indemnity provisions
contained in Section 6.7 of the Indenture. 
  
 SECTION
3.11 Servicer Expenses. The Servicer will be required to pay from its own funds all expenses (other than expenses described in the definition of Liquidation Proceeds) incurred by it in connection with its activities hereunder, including fees
and disbursements of the Indenture Trustee, Owner Trustee (in accordance with Section 8.1 of the Trust Agreement), independent accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions and reports
to the Noteholders and the Residual Interestholders. 
  
 SECTION
3.12 Insurance. The Servicer may sue to enforce or collect upon the Insurance Policies, in its own name, if possible, or as agent of the Issuer. If the Servicer elects to commence a legal proceeding to enforce an Insurance Policy, the act of
commencement will be deemed to be an automatic assignment of the rights of the Issuer under such Insurance Policy to the Servicer for purposes of collection only. If, however, in any enforcement suit or legal proceeding it is held that the Servicer
may not enforce an Insurance Policy on the grounds that it is not a real party in interest or a holder entitled to enforce the Insurance Policy, the Issuer and/or the Indenture Trustee, at the Servicer’s expense, will take such steps as the
Servicer deems necessary to enforce such Insurance Policy, including bringing suit in its name or the name of the Issuer and the Owner Trustee and/or the Indenture Trustee for the benefit of the Noteholders. 
  
 SECTION 3.13 1934 Act Filings. The Issuer hereby authorizes the
Servicer and the Seller, or either of them, to prepare, sign, certify and file any and all reports, statements and information respecting the Issuer and/or the Notes required to be filed pursuant to the Exchange Act, and the rules thereunder.

  

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 ARTICLE IV 
 DISTRIBUTIONS; ACCOUNTS 
 STATEMENTS TO THE RESIDUAL INTERESTHOLDERS 
 AND THE NOTEHOLDERS 
  
 SECTION 4.1 Establishment of Accounts. 
  
 (a) The Servicer shall cause to be established: 
  
 (i) For the benefit of the Indenture Secured Parties in the name of the Indenture Trustee, an Eligible Account (the “Collection
Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Indenture Secured Parties, which Eligible Account shall be established by and maintained with the Indenture Trustee or its
designee. 
  
 (ii) For the benefit of the
Indenture Secured Parties, in the name of the Indenture Trustee, an Eligible Account (the “Principal Distribution Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the
Indenture Secured Parties, which Eligible Account shall be established by and maintained with the Indenture Trustee or its designee. 
  
 (iii) For the benefit of the Indenture Secured Parties, in the name of the Indenture Trustee, an Eligible Account (the “Reserve
Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Indenture Secured Parties, which Eligible Account shall be established by and maintained with the Indenture Trustee or its
designee. 
  
 (iv) For the benefit of the
Indenture Secured Parties, in the name of the Indenture Trustee, an Eligible Account (the “Pre-Funding Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Indenture
Secured Parties, which Eligible Account shall be established by and maintained with the Indenture Trustee or its designee. 
  
 (b) Funds on deposit in the Collection Account, the Principal Distribution Account, the Reserve Account, the Pre-Funding Account and the Swap Termination
Payment Account (to the extent such account is established under Section 4.8(b)) shall be invested by the Indenture Trustee in Eligible Investments selected in writing by the Servicer and of which the Servicer provides notification
(pursuant to standing instructions or otherwise); provided that it is understood and agreed that neither the Servicer, the Indenture Trustee nor the Issuer shall be liable for any loss arising from such investment in Eligible Investments. If
no such written investment direction is provided to the Indenture Trustee by the Servicer, the Indenture Trustee shall hold such funds in JPMorgan Prime Money Market Fund #3605 or, if such fund is no longer available, such funds shall be held
uninvested. All such Eligible Investments shall be held by or on behalf of the Indenture Trustee as secured party for the benefit of the Indenture Secured Parties. Except to the extent the Rating Agency Condition is satisfied and the Note Insurer
(unless the Note Insurer is not the Controlling Party) consents, all investments of funds on deposit in the Trust Accounts shall mature so that such funds will be available on the 

  

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immediately following Payment Date. No Eligible Investment shall be sold or otherwise disposed of prior to its scheduled maturity unless a default occurs
with respect to such Eligible Investment and the Servicer directs the Indenture Trustee in writing to dispose of such Eligible Investment. 
  
 (c) The Indenture Trustee shall possess all right, title and interest in all funds on deposit from time to time in the Trust Accounts and in all proceeds
thereof and all such funds, investments and proceeds shall be part of the Trust Estate. Except as otherwise provided herein, the Trust Accounts shall be under the sole dominion and control of the Indenture Trustee for the benefit of Indenture
Secured Parties. If, at any time, any Trust Account ceases to be an Eligible Account, the Servicer shall promptly notify the Note Insurer and the Indenture Trustee (unless such Trust Account is an account with the Indenture Trustee) in writing and
within 10 Business Days (or such longer period as to which each Rating Agency and the Note Insurer (unless the Note Insurer is not the Controlling Party) may consent) after becoming aware of the fact, establish a new Trust Account as an Eligible
Account and shall direct the Indenture Trustee to transfer any cash and/or any investments to such new Trust Account. 
  
 (d) With respect to the Trust Account Property, the parties hereto agree that: 
  
 (i) any Trust Account Property that consists of uninvested funds shall be held solely in Eligible Accounts
and, except as otherwise provided herein, each such Eligible Account shall be subject to the exclusive custody and control of the Indenture Trustee, and, except as otherwise provided in the Transaction Documents, the Indenture Trustee or its
designee shall have sole signature authority with respect thereto; 
  
 (ii) any Trust Account Property that constitutes Physical Property shall be delivered to the Indenture Trustee or its designee, in accordance with paragraph (a) of the definition of “Delivery” and shall
be held, pending maturity or disposition, solely by the Indenture Trustee or any such designee; 
  
 (iii) any Trust Account Property that is an “uncertificated security” under Article 8 of the UCC and that is not governed by
clause (iv) below shall be delivered to the Indenture Trustee or its designee in accordance with paragraph (c) of the definition of “Delivery” and shall be maintained by the Indenture Trustee or such designee, pending maturity or
disposition, through continued registration of the Indenture Trustee’s (or its designee’s) ownership of such security on the books of the issuer thereof; and 
  
 (iv) any Trust Account Property that is an uncertificated security that is a “book-entry security”
(as such term is defined in Federal Reserve Bank Operating Circular No. 7) held in a securities account at a Federal Reserve Bank and eligible for transfer through the Fedwire® Securities Service operated by the Federal Reserve System pursuant to Federal book-entry regulations shall be delivered
in accordance with paragraph (b) of the definition of “Delivery” and shall be maintained by the Indenture Trustee or its designee or a securities intermediary (as such term is defined in Section 8-102(a)(14) of the UCC) acting
solely for the Indenture Trustee or such designee, pending 

  

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maturity or disposition, through continued book-entry registration of such Trust Account Property as described in such paragraph. 
  
 SECTION 4.2 Remittances. The Servicer shall deposit an amount equal to
all Collections into the Collection Account within two Business Days after receipt; provided, however, that if the Monthly Remittance Condition is satisfied, then the Servicer shall not be required to deposit into the Collection
Account an amount equal to the Collections received during any Collection Period until noon, New York City time, on the following Payment Date. The “Monthly Remittance Condition” shall be deemed to be satisfied if (i) COAF or
one of its Affiliates is the Servicer, (ii) no Servicer Termination Event has occurred and is continuing and (iii) Capital One Financial Corporation has a short-term debt rating of at least “Prime-1” from Moody’s and
“A-1” from Standard & Poor’s. Notwithstanding the foregoing, the Servicer may remit Collections to the Collection Account on any other alternate remittance schedule (but not later than the related Payment Date) if the Rating
Agency Condition is satisfied with respect to such alternate remittance schedule and, unless the Note Insurer is not the Controlling Party, the Note Insurer has provided its prior written consent to such alternate remittance schedule. Pending
deposit into the Collection Account, Collections may be commingled and used by the Servicer at its own risk and are not required to be segregated from its own funds. 
  
 SECTION 4.3 Additional Deposits and Payments. 
  
 (a) On the date of a repurchase of a Receivable by the Seller pursuant to Section 2.3 or
Section 2.6, or the purchase of a Receivable by the Servicer pursuant to Section 3.6, as applicable, the Servicer or the Seller, as applicable, will deposit into the Collection Account the aggregate Repurchase Price with
respect to Repurchased Receivables purchased by the Servicer or the Seller on such date and the Servicer will deposit into the Collection Account all amounts to be paid under Section 8.1. All such deposits with respect to any such date
which is a Payment Date will be made, in immediately available funds by noon, New York City time, on such Payment Date related to such Collection Period. 
  
 (b) The Indenture Trustee will, on the Payment Date relating to each Collection Period, withdraw from the Reserve Account the Reserve Account Draw Amount
and the investment income accrued during such Collection Period from the investment of funds in the Reserve Account and deposit such amounts in the Collection Account. 
  
 (c) The Indenture Trustee will, on the Payment Date relating to each Collection Period, withdraw from the Pre-Funding
Account the investment income accrued during such Collection Period from the investment of funds in the Pre-Funding Account and deposit such amount in the Collection Account. 
  
 (d) The Indenture Trustee will, on each Payment Date, withdraw from the Reserve Account the Reserve Account Excess Amount,
if any, for such Payment Date and deposit such amount in the Collection Account. 
  
 (e) On the Closing Date the Seller will deposit, or cause to be deposited from proceeds of the sale of the Notes, into the Reserve Account an amount equal to the Initial Reserve Account Deposit Amount. 
  

 15 

 (f) On each Funding Date, the Seller will deposit into the Reserve Account an amount equal to the
Subsequent Reserve Account Deposit Amount for such Funding Date. 
  
 (g) On or prior to the third Business Day preceding each Determination Date, the Indenture Trustee shall send a written notice to the Servicer stating the amount of investment income earned, if any, during the related Collection Period on
each Trust Account maintained at the Indenture Trustee. 
  
 (h)
The Indenture Trustee will promptly, but in no event later than noon (New York City time) on the related Payment Date, deposit into the Collection Account all Net Swap Receipts received by it under the Interest Rate Swap Agreement in immediately
available funds. 
  
 SECTION 4.4 Distributions. 

 
 (a) Prior to any acceleration of the Notes pursuant to
Section 5.2 of the Indenture, on each Payment Date, the Indenture Trustee (based on information contained in the Servicer’s Certificate delivered on or before the related Determination Date pursuant to Section 3.8) shall
make the following deposits and distributions, to the extent of Available Funds and the Reserve Account Draw Amount, on deposit in the Collection Account for such Payment Date, in the following order of priority: 
  
 (1) first, to the Indenture Trustee and the Owner
Trustee, any accrued and unpaid fees (including unpaid Indenture Trustee fees or Owner Trustee fees with respect to prior periods) and any reasonable expenses (including indemnification amounts) not previously paid by the Servicer; provided,
however, that, unless (i) an Event of Default or Servicer Termination Event has occurred and is continuing and (ii) the Controlling Party shall consent otherwise, expenses and indemnification amounts payable to the Indenture Trustee
and the Owner Trustee pursuant to this clause first and Section 5.4(b)(i) of the Indenture shall be limited to $150,000 per annum in the aggregate; 
  
 (2) second, to the Servicer, the Servicing Fee and all unpaid Servicing Fees with respect to prior
periods; 
  
 (3) third, to the Swap
Counterparty, the Net Swap Payment; 
  
 (4)
fourth, to the Noteholders, on a pro rata basis, the Accrued Note Interest due and accrued for the related Interest Period; 
  
 (5) fifth, provided that no Note Insurer Default has occurred and is continuing, to the Note Insurer, the Premium (including any
prior unpaid Premiums) and the Reimbursement Obligations (excluding Reimbursement Obligations relating to payments made under the Note Insurance Policy with respect to principal of the Notes) due to the Note Insurer; 
  
 (6) sixth, to the Principal Distribution Account for
distribution to the Holders of the Class A Notes, pursuant to Section 8.2(c) of the Indenture, the First Allocation of Principal, if any; 
  

 16 

 (7) seventh, to the Note Insurer, all accrued and unpaid Premium and Reimbursement
Obligations to the extent not paid pursuant to clause fifth; 
  
 (8) eighth, to the Principal Distribution Account for distribution to the Holders of the Class A Notes, in accordance with Section 8.2(c) of the Indenture, the Second Allocation of Principal,
if any; 
  
 (9) ninth, to the Reserve
Account, any additional amounts required to cause the amount in the Reserve Account to equal the Specified Reserve Account Balance; 
  
 (10) tenth, on a pro rata basis, to the Swap Counterparty, any Swap Termination Payments and to the Note Insurer, any reimbursement
of payments made under the Swap Policy in respect of Swap Termination Payments; 
  
 (11) eleventh, to the Owner Trustee and the Indenture Trustee, accrued and unpaid fees and reasonable expenses (including
indemnification amounts) permitted under this Agreement, the Trust Agreement and the Indenture, as applicable, which have not been previously paid; and 
  
 (12) twelfth, to or at the direction of the Residual Interestholder, any funds remaining. 
  
 Notwithstanding any other provision of this Section 4.4, following the occurrence
and during the continuation of an Event of Default which has resulted in an acceleration of the Notes, the Indenture Trustee shall apply all amounts on deposit in the Collection Account pursuant to Section 5.4(b) of the Indenture.

  
 (b) After the payment in full of the Notes, all amounts
payable to the Note Insurer under the Insurance Agreement, all amounts payable to the Swap Counterparty and all other amounts payable under Section 4.4(a), all Collections shall be paid to or in accordance with the instructions provided
from time to time by the Residual Interestholder. 
  
 SECTION 4.5
Net Deposits. If the Monthly Remittance Condition is satisfied, the Servicer shall be permitted to deposit into the Collection Account only the net amount distributable to Persons other than the Servicer and its Affiliates on the Payment
Date. The Servicer shall, however, account as if all of the deposits and distributions described herein were made individually and in such event the Indenture Trustee shall distribute funds pursuant to Section 4.4(a) hereof without
allocating any amounts for payment to the Servicer or its Affiliates. 
  
 SECTION 4.6 Statements to Noteholders and Residual Interestholders. On or before each Determination Date, the Servicer shall provide to the Residual Interestholders and to the Indenture Trustee (with a copy to each Rating Agency, the
Note Insurer, the Swap Counterparty and the Issuer) for the Indenture Trustee to forward or otherwise make available to each Noteholder of record as of the most recent Record Date, a statement setting forth for the Collection Period and Payment Date
relating to such Determination Date the following information (to the extent applicable): 
  
 (a) the aggregate amount being paid on such Payment Date in respect of interest on and principal of each Class of Notes; 
  

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 (b) the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3 Note Balance,
the Class A-4 Note Balance and the Note Factor with respect to each Class of Notes, in each case after giving effect to payments on such Payment Date; 
  
 (c) (i) the amount on deposit in the Reserve Account and the Specified Reserve Account Balance, each as of the beginning and end of the related Collection
Period, (ii) the amount deposited in the Reserve Account in respect of such Payment Date, if any, (iii) the Reserve Account Draw Amount and the Reserve Account Excess Amount, if any, to be withdrawn from the Reserve Account on such Payment
Date, (iv) the balance on deposit in the Reserve Account on such Payment Date after giving effect to withdrawals therefrom and deposits thereto in respect of such Payment Date and (v) the change in such balance from the immediately
preceding Payment Date; 
  
 (d) the First Allocation of Principal
and the Second Allocation of Principal for such Payment Date; 
  
 (e) the Pool Balance and the Pool Factor as of the close of business on the last day of the preceding Collection Period; 
  
 (f) the amount of the Servicing Fee to be paid to the Servicer with respect to the related Collection Period and the amount of any unpaid Servicing Fees
and the change in such amount from that of the prior Payment Date; 
  
 (g) the amount of the Noteholders’ Interest Carryover Shortfall, if any, on such Payment Date and the change in such amount from the preceding Payment Date; 
  
 (h) the aggregate Repurchase Price with respect to Repurchased Receivables paid by (i) the Servicer and (ii) the
Seller with respect to the related Collection Period; 
  
 (i) the
amount on deposit in the Pre-Funding Account (until the termination of the Funding Period); 
  
 (j) the Net Swap Receipts and Net Swap Payment, if any; 
  
 (k) the amount of fees to be paid to the Indenture Trustee and the Owner Trustee with respect to the related Payment Date and the amount of any unpaid fees to the Indenture Trustee and the Owner Trustee and the change
in such amount from that of the prior Payment Date; 
  
 (l) the
Deficiency Amount, if any; 
  
 (m) the Delinquency Ratio (as
defined in the Insurance Agreement) as of such Determination Date; and 
  

 18 

 (n) the Cumulative Net Charge-off Ratio (as defined in the Insurance Agreement) as of such Determination
Date. 
  
 Each amount set forth pursuant to clause (a) or (g) above
relating to the Notes shall be expressed as a dollar amount per $1,000 of the Initial Note Balance of the Notes (or Class thereof). 
  
 The Indenture Trustee may make available via the Indenture Trustee’s internet website all reports or notices required to be provided by the Indenture
Trustee under this Section 4.6. Any information that is disseminated in accordance with the provisions of this Section 4.6 shall not be required to be disseminated in any other form or manner. The Indenture Trustee will make
no representations or warranties as to the accuracy or completeness of such documents and will assume no responsibility therefor. 
  
 The Indenture Trustee’s internet website shall be initially located at “www.jpmorgan.com/sfr” or at such other address as shall be
specified by the Indenture Trustee from time to time in writing to the Noteholders, the Note Insurer, the Servicer, the Issuer or any Paying Agent. In connection with providing access to the Indenture Trustee’s internet website, the Indenture
Trustee may require registration and the acceptance of a disclaimer. The Indenture Trustee shall not be liable for the dissemination of information in accordance with this Agreement. 
  
 SECTION 4.7 No Duty to Confirm. The Indenture Trustee shall have no duty or obligation to verify or confirm the
accuracy of any of the information or numbers set forth in the Servicer’s Certificate delivered by the Servicer to the Indenture Trustee, and the Indenture Trustee shall be fully protected in relying upon such Servicer’s Certificate.

  
 [SECTION 4.8 Interest Rate Swap Agreement. 

 
 (a) The Issuer shall enter into the Initial Interest Rate Swap Agreement
with the Initial Swap Counterparty. Subject to the requirements of this Section 4.8, the Issuer may from time to time enter into one or more Replacement Interest Rate Swap Agreements in the event that the Initial Interest Rate Swap
Agreement is terminated due to any “Termination Event” or “Event of Default” (each as defined in the Initial Interest Rate Swap Agreement) prior to its scheduled expiration and in accordance with the terms of such Interest Rate
Swap Agreement. Other than any Replacement Interest Rate Swap Agreement entered into pursuant to this Section 4.8(a), the Issuer may not enter into any additional interest rate swap agreements. 
  
 (b) In the event of any early termination of any Interest Rate Swap
Agreement, (i) the Indenture Trustee shall establish the Swap Termination Payment Account (the “Swap Termination Payment Account”) over which the Indenture Trustee shall have exclusive control and the sole right of withdrawal,
and in which no Person other than the Indenture Trustee, the Noteholders and the Note Insurer shall have any legal or beneficial interest, (ii) any Swap Termination Payments received from the Swap Counterparty will be remitted to the Swap
Termination Payment Account and (iii) any Swap Replacement Proceeds received from a Replacement Swap Counterparty will be remitted directly to the Swap Counterparty; provided, that any such remittance to the Swap Counterparty shall not
exceed the amounts, if any, owed to the Swap Counterparty under the Interest Rate Swap Agreement; provided, further that the Swap 

  

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Counterparty shall only receive Swap Replacement Proceeds if all Swap Termination Payments due from the Swap Counterparty to the Issuer have been paid in
full and if such amounts have not been paid in full then the amount of Swap Replacement Proceeds necessary to make up any deficiency shall be remitted to the Swap Termination Payment Account. 
  
 (c) The Issuer shall promptly, following the early termination of any Initial
Interest Rate Swap Agreement due to an “Event of Default” or “Termination Event” (each as defined in the Initial Interest Rate Swap Agreement) and in accordance with the terms of such Interest Rate Swap Agreement, enter into a
Replacement Interest Rate Swap Agreement to the extent possible and practicable through application of funds available in the Swap Termination Payment Account unless (i) the Note Insurer (so long as the Note Insurer is the Controlling Party)
does not consent or (ii) entering into such Replacement Interest Rate Swap Agreement will cause the Rating Agency Condition not to be satisfied. 
  
 (d) To the extent that (i) the funds available in the Swap Termination Payment Account exceed the costs of entering into a Replacement Interest Rate
Swap Agreement or (ii) the Issuer determines with the consent of the Note Insurer (so long as the Note Insurer is the Controlling Party) not to replace the Initial Interest Rate Swap Agreement and the Rating Agency Condition is met with respect
to such determination, the amounts in the Swap Termination Payment Account (other than funds used to pay the costs of entering into a Replacement Interest Rate Swap Agreement, if applicable) shall be included in Available Funds and allocated in
accordance with the order of priority specified in Section 4.4(a) on the following Payment Date. In any other situation, amounts on deposit in the Swap Termination Payment Account at any time shall be invested pursuant to
Section 4.1(b) and on each Payment Date after the creation of a Swap Termination Payment Account, the funds therein shall be used to cover any shortfalls in the amounts payable under clauses (1) through (8) under
Section 4.4(a), provided that in no event will the amount withdrawn from the Swap Termination Payment Account on such Payment Date exceed the amount of Net Swap Receipts that would have been required to be paid on such Payment Date under
the terminated Interest Rate Swap Transaction had there been no termination of such transaction. Any amounts remaining in the Swap Termination Payment Account after payment in full of the Class A-4 Notes shall be included in Available Funds and
allocated in accordance with the order of priority specified in Section 4.4(a) on the following Payment Date. 
  
 (e) If the Swap Counterparty is required to post collateral under the terms of the Interest Rate Swap Agreement, the Indenture Trustee shall establish the
Swap Collateral Account (the “Swap Collateral Account”) over which the Indenture Trustee shall have exclusive control and the sole right of withdrawal, and in which no Person other than the Indenture Trustee, the Noteholders and the
Note Insurer shall have any legal or beneficial interest. The Indenture Trustee shall deposit all collateral received from the Swap Counterparty under the Interest Rate Swap Agreement into the Swap Collateral Account. Any and all funds at any time
on deposit in, or otherwise to the credit of, the Swap Collateral Account shall be held in trust by the Indenture Trustee for the benefit of the Noteholders and the Note Insurer. The only permitted withdrawal from or application of funds on deposit
in, or otherwise to the credit of, the Swap Collateral Account shall be (i) for application to obligations of the Swap Counterparty to the Issuer under the Interest Rate Swap Agreement in accordance with the terms of the Interest 

  

 20 

 
Rate Swap Agreement or (ii) to return collateral to the Swap Counterparty when and as required by the Interest Rate Swap Agreement. 
  
 (f) If at any time the Interest Rate Swap Agreement becomes subject to early
termination due to the occurrence of an “Event of Default” or “Termination Event” (as defined in the Interest Rate Swap Agreement), the Issuer and the Indenture Trustee shall use reasonable efforts (following the expiration of
any applicable grace period) to enforce the rights of the Issuer thereunder as may be permitted by the terms of the Interest Rate Swap Agreement and consistent with the terms hereof and subject to any rights of the Note Insurer herein or under the
Interest Rate Swap Agreement. To the extent not fully paid from Swap Replacement Proceeds, any Swap Termination Payment owed by the Issuer to the Swap Counterparty under the Interest Rate Swap Agreement shall be payable to the Swap Counterparty in
installments made on each following Payment Date until paid in full in accordance with the order of priority specified in Section 4.4(a). To the extent that the Swap Replacement Proceeds exceed any such Swap Termination Payments (or if
there are no Swap Termination Payments due to the Swap Counterparty), the Swap Replacement Proceeds in excess of such Swap Termination Payments, if any, shall be included in Available Funds and allocated and applied in accordance with the order of
priority specified in Section 4.4(a) on the following Payment Date.] 
  
 ARTICLE V 
 THE SELLER 
  
 SECTION 5.1 Representations and Warranties of Seller. The Seller makes the following representations and warranties
as of the Closing Date and as of each Funding Date on which the Issuer will be deemed to have relied in acquiring the Transferred Assets. The representations and warranties speak as of the execution and delivery of this Agreement and will survive
the conveyance of the Transferred Assets to the Issuer and the pledge thereof by the Issuer to the Indenture Trustee pursuant to the Indenture: 
  
 (a) Existence and Power. The Seller is a Delaware limited liability company validly existing and in good standing under the laws of its state of
organization and has, in all material respects, full power and authority to own its assets and operate its business as presently owned or operated, and to execute, deliver and perform its obligations under the Transaction Documents to which it is a
party or affect the enforceability or collectibility of the Receivables or any other part of the Transferred Assets. The Seller has obtained all necessary licenses and approvals in each jurisdiction where the failure to do so would materially and
adversely affect the ability of the Seller to perform its obligations under the Transaction Documents or affect the enforceability or collectibility of the Receivables or any other part of the Transferred Assets. 
  
 (b) Authorization and No Contravention. The execution, delivery and
performance by the Seller of the Transaction Documents to which it is a party have been duly authorized by all necessary action on the part of the Seller and do not contravene or constitute a default under (i) any applicable law, rule or
regulation, (ii) its organizational documents or (iii) any indenture or agreement or instrument to which the Seller is a party or by which its properties are bound (other than violations of such laws, rules, regulations, indentures or
agreements which do not affect the legality, validity or enforceability of any of such agreements and which, individually or in the aggregate, would not materially and adversely affect the transactions 

  

 21 

 
contemplated by, or the Seller’s ability to perform its obligations under, the Transaction Documents). 
  
 (c) No Consent Required. No approval or authorization by, or filing
with, any Governmental Authority is required in connection with the execution, delivery and performance by the Seller of any Transaction Document other than (i) UCC filings, (ii) approvals and authorizations that have previously been
obtained and filings that have previously been made and (iii) approval, authorizations or filings which, if not obtained or made, would not have a material adverse effect on the enforceability or collectibility of the Receivables or any other
part of the Transferred Assets or would not materially and adversely affect the ability of the Seller to perform its obligations under the Transaction Documents. 
  
 (d) Binding Effect. Each Transaction Document to which the Seller is a party constitutes the legal, valid and binding
obligation of the Seller enforceable against the Seller in accordance with its terms, except as such enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws
affecting the enforcement of creditors’ rights generally and, if applicable, the rights of creditors of limited liability companies from time to time in effect or by general principles of equity. 
  
 (e) Lien Filings. The Seller is not aware of any material judgment,
ERISA or tax lien filings against the Seller. 
  
 (f) No
Proceedings. There are no actions, orders, suits or proceedings pending or, to the knowledge of the Seller, threatened against the Seller before or by any Governmental Authority that (i) assert the invalidity or unenforceability of this
Agreement or any of the other Transaction Documents, (ii) seek to prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (iii) seek any
determination or ruling that would materially and adversely affect the performance by the Seller of its obligations under this Agreement or any of the other Transaction Documents or the collectibility or enforceability of the Receivables, or
(iv) relate to the Seller that would materially and adversely affect the federal or Applicable Tax State income, excise, franchise or similar tax attributes of the Notes. 
  
 (g) [Reserved]. 
  
 (h) Trade Name. “Capital One Auto Receivables, LLC” is the only trade name under which the Seller is currently operating its business.
For the six (6) years (or such shorter period of time during which the Seller was in existence) preceding the date hereof, the Seller operated its business under the trade name “Capital One Auto Receivables, LLC”. “Capital One
Auto Receivables, LLC” is the name of the Seller indicated on the public record of the Seller’s jurisdiction of organization which shows the Seller to have been organized. 
  
 (i) Principal Executive Office. Since its inception, the Seller has maintained its principal executive office in the
Commonwealth of Virginia. 
  

 22 

 (j) Investment Company Act. The Seller is not an “investment company” that is registered
or required to be registered under, or otherwise subject to the restrictions of, the Investment Company Act of 1940, as amended. 
  
 SECTION 5.2 Liability of the Seller; Indemnities. The Seller shall be liable in accordance herewith only to the extent of the obligations
specifically undertaken by the Seller under this Agreement, and hereby agrees to the following: 
  
 (a) The Seller shall indemnify, defend, and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the Note Insurer, the Noteholders and the
Residual Interestholder from and against any loss, liability or expense incurred by reason of the Seller’s violation of federal or State securities laws in connection with the registration or the sale of the Notes. 
  
 (b) The Seller will pay any and all taxes levied or assessed upon the Issuer
or upon all or any part of the Trust Estate. 
  
 (c)
Indemnification under this Section 5.2 will survive the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination of this Agreement and will include, without limitation, reasonable fees and expenses of
counsel and expenses of litigation. If the Seller has made any indemnity payments pursuant to this Section 5.2 and the Person to or on behalf of whom such payments are made thereafter collects any of such amounts from others, such Person
will promptly repay such amounts to the Seller, without interest. 
  
 (d) The Seller’s obligations under this Section 5.2 are obligations solely of the Seller and will not constitute a claim against the Seller to the extent that the Seller does not have funds sufficient to make payment of
such obligations. In furtherance of and not in derogation of the foregoing, the Issuer, the Servicer, the Indenture Trustee, the Note Insurer and the Owner Trustee, by entering into or accepting this Agreement, acknowledge and agree that they have
no right, title or interest in or to the Other Assets of the Seller. To the extent that, notwithstanding the agreements and provisions contained in the preceding sentence, the Issuer, the Servicer, the Note Insurer, the Indenture Trustee or the
Owner Trustee either (i) asserts an interest or claim to, or benefit from, Other Assets, or (ii) is deemed to have any such interest, claim to, or benefit in or from Other Assets, whether by operation of law, legal process, pursuant to
applicable provisions of insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code or any successor provision having similar effect under the Bankruptcy Code), then the Issuer, the Servicer, the Note Insurer,
the Indenture Trustee or the Owner Trustee further acknowledges and agrees that any such interest, claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment in full, which, under the terms of the
relevant documents relating to the securitization or conveyance of such Other Assets, are entitled to be paid from, entitled to the benefits of, or otherwise secured by such Other Assets (whether or not any such entitlement or security interest is
legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Seller), including the payment of post-petition interest on such other
obligations and liabilities. This subordination agreement will be deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code. The Issuer, the Servicer, the Note Insurer, the Indenture Trustee and the Owner
Trustee each further 

  

 23 

 
acknowledges and agrees that no adequate remedy at law exists for a breach of this Section 5.2(d) and the terms of this
Section 5.2(d) may be enforced by an action for specific performance. The provisions of this Section 5.2(d) will be for the third party benefit of those entitled to rely thereon and will survive the termination of this
Agreement. 
  
 SECTION 5.3 Merger or Consolidation of, or
Assumption of the Obligations of, Seller. Any Person (i) into which the Seller may be merged or consolidated, (ii) resulting from any merger, conversion, or consolidation to which the Seller is a party, (iii) succeeding to the
business of the Seller, or (iv) more than 50% of the voting stock or voting power and 50% or more of the economic equity of which is owned directly or indirectly by Capital One Financial Corporation, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Seller under this Agreement, will be the successor to the Seller under this Agreement without the execution or filing of any document or any further act on the part of any of the
parties to this Agreement. Notwithstanding the foregoing, if the Seller enters into any of the foregoing transactions and is not the surviving entity, (x) the Seller shall deliver to the Indenture Trustee and the Note Insurer an Officer’s
Certificate and an Opinion of Counsel each stating that such merger, conversion, consolidation or succession and such agreement of assumption comply with this Section 5.3 and that all conditions precedent, if any, provided for in this
Agreement relating to such transaction have been complied with and (y) the Seller will deliver to the Indenture Trustee and the Note Insurer an Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements and amendments thereto have been executed and filed that are necessary fully to preserve and protect the interest of the Issuer and the Indenture Trustee, respectively, in the Receivables, and reciting the
details of such filings, or (B) stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such interest. The Seller will provide notice of any merger, conversion, consolidation, or succession pursuant to
this Section 5.3 to the Rating Agencies and the Note Insurer. Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses (x) and (y) of this
Section 5.3 will be conditions to the consummation of any of the transactions referred to in clauses (i), (ii) or (iii) of this Section 5.3 in which the Seller is not the surviving entity. 
  
 SECTION 5.4 Limitation on Liability of Seller and Others. The Seller
and any officer or employee or agent of the Seller may rely in good faith on the advice of counsel or on any document of any kind, prima facie properly executed and submitted by any Person respecting any matters arising hereunder. The Seller will
not be under any obligation to appear in, prosecute, or defend any legal action that is not incidental to its obligations under this Agreement, and that in its opinion may involve it in any expense or liability. 
  
 SECTION 5.5 Seller May Own Notes. The Seller, and any Affiliate of the
Seller, may in its individual or any other capacity become the owner or pledgee of Notes with the same rights as it would have if it were not the Seller or an Affiliate thereof, except as otherwise expressly provided herein or in the other
Transaction Documents. Except as set forth herein or in the other Transaction Documents, Notes so owned by the Seller or any such Affiliate will have an equal and proportionate benefit under the provisions of this Agreement and the other Transaction
Documents, without preference, priority, or distinction as among all of the Notes. Unless all Notes are owned by the Issuer, the Seller, the Servicer, the Administrator or any of their respective Affiliates, any Notes owned by the Issuer, the
Seller, the Servicer, the 

  

 24 

 
Administrator or any of their respective Affiliates shall be disregarded with respect to the determination of any request, demand, authorization, direction,
notice, consent, vote or waiver hereunder or under any other Transaction Document. 
  
 SECTION 5.6 Sarbanes-Oxley Act Requirements. To the extent any documents are required to be filed or any certification is required to be made with respect to the Issuer or the Notes pursuant to the
Sarbanes-Oxley Act, the Issuer hereby authorizes the Servicer and the Seller, or either of them, to prepare, sign, certify and file any such documents or certifications. 
  
 SECTION 5.7 Compliance with Organizational Documents. The Seller shall comply with its limited liability company
agreement and other organizational documents. 
  
 SECTION 5.8
Perfection Representations, Warranties and Covenants. The Seller hereby makes the perfection representations, warranties and covenants attached hereto as Exhibit E to the Issuer, the Indenture Trustee and the Note Insurer and the
Issuer shall be deemed to have relied on such representations, warranties and covenants in acquiring the Transferred Assets. 
  
 ARTICLE VI 
 THE SERVICER 
  
 SECTION 6.1 Representations of Servicer. The Servicer makes the
following representations and warranties as of the Closing Date and as of each Funding Date on which the Issuer will be deemed to have relied in acquiring the Transferred Assets. The representations and warranties speak as of the execution and
delivery of this Agreement and will survive the conveyance of the Transferred Assets to the Issuer and the pledge thereof by the Issuer to the Indenture Trustee pursuant to the Indenture: 
  
 (a) Existence and Power. The Servicer is a Texas corporation validly existing and in good standing under the laws of
its state of organization and has, in all material respects, full power and authority to own its assets and operate its business as presently owned or operated, and to execute, deliver and perform its obligations under the Transaction Documents to
which it is a party or which affect the enforceability or collectibility of the Receivables or any other part of the Transferred Assets. The Servicer has obtained all necessary licenses and approvals in each jurisdiction where the failure to do so
would materially and adversely affect the ability of the Servicer to perform its obligations under the Transaction Documents or affect the enforceability or collectibility of the Receivables or any other part of the Transferred Assets. 

 
 (b) Authorization and No Contravention. The execution, delivery and
performance by the Servicer of the Transaction Documents to which it is a party have been duly authorized by all necessary action on the part of the Servicer and do not contravene or constitute a default under (i) any applicable law, rule or
regulation, (ii) its organizational documents or (iii) any material indenture or material agreement or instrument to which the Servicer is a party or by which its properties are bound, in each case, other than violations of such laws,
rules, regulations, indentures or agreements which do not affect the legality, validity or enforceability of any of such agreements and which, individually or if the aggregate, would not materially and adversely affect the transactions contemplated
by, or the Servicer’s ability to perform its obligations under, the Transaction Documents. 
  

 25 

 (c) No Consent Required. No approval or authorization by, or filing with, any Governmental
Authority is required in connection with the execution, delivery and performance by the Servicer of any Transaction Document other than (i) UCC filings, (ii) approvals and authorizations that have previously been obtained and filings that
have previously been made or approvals, authorizations or filings which will be made on a timely basis and (iii) approvals, authorizations or filings which, if not obtained or made, would not have a material adverse effect on the enforceability
or collectibility of the Receivables or would not materially and adversely affect the ability of the Servicer to perform its obligations under the Transaction Documents. 
  
 (d) Binding Effect. Each Transaction Document to which the Servicer 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 applicable bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other
similar laws affecting creditors’ rights generally and, if applicable, the rights of creditors of limited liability companies from time to time in effect or by general principles of equity. 
  
 (e) No Proceedings. There are no actions, suits or proceedings pending
or, to the knowledge of the Servicer, threatened against the Servicer before or by any Governmental Authority that (i) assert the invalidity or unenforceability of this Agreement or any of the other Transaction Documents, (ii) seek to
prevent the issuance of the Notes or the consummation of any of the transactions contemplated by this Agreement or any of the other Transaction Documents, (iii) seek any determination or ruling that would materially and adversely affect the
performance by the Servicer of its obligations under this Agreement or any of the other Transaction Documents, or (iv) relate to the Servicer that would materially and adversely affect the federal or Applicable Tax State income, excise,
franchise or similar tax attributes of the Notes. 
  
 SECTION 6.2
Indemnities of Servicer. The Servicer will be liable in accordance herewith only to the extent of the obligations specifically undertaken by the Servicer under this Agreement, and hereby agrees to the following: 
  
 (a) The Servicer will defend, indemnify and hold harmless the Issuer, the
Owner Trustee, the Indenture Trustee, the Noteholders, the Note Insurer, the Residual Interestholders and the Seller from and against any and all costs, expenses, losses, damages, claims and liabilities, arising out of or resulting from the use,
ownership or operation by the Servicer or any Affiliate thereof of a Financed Vehicle. 
  
 (b) The Servicer will indemnify, defend and hold harmless the Issuer, the Owner Trustee and the Indenture Trustee from and against any taxes that may at any time be asserted against any such Person with respect to the
transactions contemplated herein or in the other Transaction Documents, if any, including, without limitation, any sales, gross receipts, general corporation, tangible personal property, privilege, or license taxes (but, in the case of the Issuer,
not including any taxes asserted with respect to, and as of the date of, the conveyance of the Receivables to the Issuer or the issuance and original sales of the Notes, or asserted with respect to ownership of the Receivables, or federal or other
Applicable Tax State income taxes arising out of the transactions contemplated by this Agreement and the other Transaction Documents) and costs and expenses in defending against the same. For the avoidance of doubt, 

  

 26 

 
the Servicer will not indemnify for any costs, expenses, losses, claims, damages or liabilities due to the credit risk of the Obligor and for which
reimbursement would constitute recourse for uncollectible Receivables. 
  
 (c) The Servicer will indemnify, defend and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the Note Insurer, the Residual Interestholders and the Seller from and against any and all costs, expenses,
losses, claims, damages, and liabilities to the extent that such cost, expense, loss, claim, damage, or liability arose out of, or was imposed upon any such Person through, the negligence, willful misfeasance, or bad faith (other than errors in
judgment) of the Servicer in the performance of its duties under this Agreement or any other Transaction Document to which it is a party, or by reason of its failure to perform its obligations or of reckless disregard of its obligations and duties
under this Agreement or any other Transaction Document to which it is a party; provided, however, that the Servicer will not indemnify for any costs, expenses, losses, claims, damages or liabilities arising from its breach of any
covenant for which the repurchase of the affected Receivables is specified as the sole remedy pursuant to Section 2.6 or Section 3.6 (except to the extent described in Section 3.6). 
  
 (d) The Servicer will indemnify Wilmington Trust Company in its individual
capacity and as trustee and its successors, assigns, directors, officers, employees and agents (the “Indemnified Parties”) from and against, any and all loss, liability, expense, tax, penalty or claim (including reasonable legal
fees and expenses) of any kind and nature whatsoever which may at any time be imposed on, incurred by, or asserted against Wilmington Trust Company in its individual capacity and as trustee or any Indemnified Party in any way relating to or arising
out of the Trust Agreement, the other Transaction Documents, the Trust Estate, the administration of the Trust Estate or the action or inaction of Wilmington Trust Company under the Trust Agreement; provided, however, that the Servicer
shall not be liable for or required to indemnify Wilmington Trust Company from and against any of the foregoing expenses arising or resulting from (i) its own willful misconduct, bad faith or gross negligence, (ii) the inaccuracy of any
representation or warranty contained in Section 7.3 of the Trust Agreement expressly made by Wilmington Trust Company in its individual capacity, (iii) liabilities arising from the failure of Wilmington Trust Company to perform
obligations expressly undertaken by it in the last sentence of Section 6.4 of the Trust Agreement or (iv) taxes, fees or other charges on, based on or measured by, any fees, commissions or compensation received by the Owner Trustee.
To the extent not paid by the Servicer, such indemnification shall be paid in accordance with Section 4.4 of this Agreement or Section 5.4(b) of the Indenture. 
  
 The Servicer will compensate the Indenture Trustee and indemnify the Indenture Trustee to the extent and subject to the
conditions set forth in Section 6.7 of the Indenture, except to the extent that any cost, expense, loss, claim, damage or liability arises out of or is incurred in connection with the performance by the Indenture Trustee of the duties of
a Successor Servicer hereunder. 
  
 (e) Indemnification under this
Section 6.2 by COAF (or any successor thereto pursuant to Section 7.1) as Servicer, with respect to the period such Person was the Servicer, will survive the termination of such Person as Servicer or a resignation by such
Person as Servicer as well as the termination of this Agreement or the resignation or removal of the Owner Trustee or 

  

 27 

 
the Indenture Trustee and will include reasonable fees and expenses of counsel and expenses of litigation. If the Servicer has made any indemnity payments
pursuant to this Section 6.2 and the Person to or on behalf of whom such payments are made thereafter collects any of such amounts from others, such Person will promptly repay such amounts to the Servicer, without interest. 

 
 SECTION 6.3 Merger or Consolidation of, or Assumption of the
Obligations of, Servicer. Any Person (i) into which the Servicer may be merged or consolidated, (ii) resulting from any merger, conversion, or consolidation to which the Servicer is a party, (iii) succeeding to the business of the
Servicer, or (iv) any company or other business entity of which Capital One Financial Corporation owns, directly or indirectly, more than 50% of the voting stock or voting power and 50% or more of the economic equity, which Person in any of the
foregoing cases executes an agreement of assumption to perform every obligation of the Servicer under this Agreement, will be the successor to the Servicer under this Agreement without the execution or filing of any paper or any further act on the
part of any of the parties to this Agreement. Notwithstanding the foregoing, if the Servicer enters into any of the foregoing transactions and is not the surviving entity, (x) the Servicer shall deliver to the Indenture Trustee and the Note
Insurer an Officer’s Certificate and an Opinion of Counsel each stating that such merger, conversion, consolidation, or succession and such agreement of assumption comply with this Section 6.3 and that all conditions precedent
provided for in this Agreement relating to such transaction have been complied with and (y) the Servicer will deliver to the Indenture Trustee and the Note Insurer an Opinion of Counsel either (A) stating that, in the opinion of such
counsel, all financing statements and continuation statements and amendments thereto have been executed and filed that are necessary fully to preserve and protect the interest of the Issuer and the Indenture Trustee, respectively, in the
Receivables, and reciting the details of such filings, or (B) stating that, in the opinion of such counsel, no such action is necessary to preserve and protect such interests. The Servicer will provide notice of any merger, conversion,
consolidation or succession pursuant to this Section 6.3 to the Rating Agencies and the Note Insurer. Notwithstanding anything herein to the contrary, the execution of the foregoing agreement of assumption and compliance with clauses
(x) and (y) of this Section 6.3 will be conditions to the consummation of any of the transactions referred to in clauses (i), (ii), or (iii) of this Section 6.3 in which the Servicer is not the surviving
entity. 
  
 SECTION 6.4 Limitation on Liability of Servicer and
Others.  
  
 (a) Neither the Servicer nor any of the directors
or officers or employees or agents of the Servicer will be under any liability to the Issuer, the Indenture Trustee, the Owner Trustee, the Noteholders, the Note Insurer, the Swap Counterparty or the Residual Interestholders, except as provided
under this Agreement, for any action taken or for refraining from the taking of any action pursuant to this Agreement or for errors in judgment; provided, however, that this provision will not protect the Servicer or any such Person against any
liability that would otherwise be imposed by reason of willful misfeasance or bad faith in the performance of duties or by reason of its failure to perform its obligations or of reckless disregard of obligations and duties under this Agreement, or
by reason of negligence in the performance of its duties under this Agreement (except for errors in judgment). The Servicer and any director, officer or employee or agent of the Servicer may rely in good faith on any Opinion of Counsel or on any
Officer’s Certificate of the Seller or certificate of auditors believed 

  

 28 

 
to be genuine and to have been signed by the proper party in respect of any matters arising under this Agreement. 
  
 (b) Except as provided in this Agreement, the Servicer will not be under any
obligation to appear in, prosecute, or defend any legal action that is not incidental to its duties to service the Receivables in accordance with this Agreement, and that in its opinion may involve it in any expense or liability; provided, however,
that the Servicer may undertake any reasonable action that it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties to this Agreement and the interests of the Noteholders and the Residual
Interestholders under this Agreement. In such event, the legal expenses and costs of such action and any liability resulting therefrom will be expenses, costs and liabilities of the Servicer. 
  
 SECTION 6.5 Delegation of Duties. The Servicer may, at any time
without notice or consent, delegate (a) any or all of its duties (including, without limitation, its duties as custodian) under the Transaction Documents to any of its Affiliates or (b) specific duties (including, without limitation, its
duties as custodian) to sub-contractors who are in the business of performing such duties; provided, that no such delegation shall relieve the Servicer of its responsibility with respect to such duties and the Servicer shall remain obligated
and liable to the Note Insurer, the Issuer and the Indenture Trustee for its duties hereunder as if the Servicer alone were performing such duties. 
  
 SECTION 6.6 COAF Not to Resign as Servicer. Subject to the provisions of Sections 6.3 and 6.5, (a) COAF will not resign from the
obligations and duties hereby imposed on it as Servicer under this Agreement except upon determination that the performance of its duties under this Agreement by reason of a change in applicable legal requirements is no longer permissible under
applicable law and (b) COAF will not assign this Agreement or any of its rights, powers, duties or obligations hereunder. Notice of any such determination permitting the resignation of COAF will be communicated to the Issuer, the Note Insurer
and the Indenture Trustee at the earliest practicable time (and, if such communication is not in writing, will be confirmed in writing at the earliest practicable time) and any such determination will be evidenced by an Opinion of Counsel to such
effect delivered to the Issuer, the Note Insurer and the Indenture Trustee concurrently with or promptly after such notice. No such resignation will become effective until a successor Servicer has assumed the responsibilities and obligations of COAF
as Servicer pursuant to Section 7.1. 
  
 SECTION 6.7
Servicer May Own Notes. The Servicer, and any Affiliate of the Servicer, may, in its individual or any other capacity, become the owner or pledgee of Notes with the same rights as it would have if it were not the Servicer or an Affiliate
thereof, except as otherwise expressly provided herein or in the other Transaction Documents. Except as set forth herein or in the other Transaction Documents, Notes so owned by or pledged to the Servicer or such Affiliate will have an equal and
proportionate benefit under the provisions of this Agreement, without preference, priority or distinction as among all of the Notes. 
  

 29 

 ARTICLE VII 
 TERMINATION OF SERVICER 
  
 SECTION 7.1 Termination of Servicer. 
  
 (a) If a
Servicer Termination Event shall have occurred and be continuing, the Indenture Trustee shall, at the direction of the Controlling Party, by notice given to the Servicer, the Owner Trustee, the Issuer, the Administrator, the Noteholders, the Note
Insurer, the Swap Counterparty and each Rating Agency, terminate the rights and obligations of the Servicer under this Agreement with respect to the Receivables. In the event the Servicer is removed or resigns as Servicer with respect to servicing
the Receivables, the Indenture Trustee, acting at the direction of the Controlling Party, shall appoint a successor Servicer. Upon the Servicer’s receipt of notice of termination, such Servicer will continue to perform its functions as Servicer
under this Agreement only until the date specified in such termination notice or, if no such date is specified in such termination notice, until receipt of such notice. If a successor Servicer has not been appointed at the time when the outgoing
Servicer ceases to act as Servicer in accordance with this Section 7.1, the Indenture Trustee without further action will automatically be appointed the successor Servicer. Notwithstanding the above, the Indenture Trustee, if it is
legally unable or is unwilling to so act, will appoint, or petition a court of competent jurisdiction to appoint a successor Servicer. Any successor Servicer shall be an established institution having a net worth of not less than $100,000,000 (or
such lesser amount that the Note Insurer may consent in writing) and whose regular business includes the servicing of comparable motor vehicle receivables having an aggregate outstanding principal amount of not less than $50,000,000. 
  
 (b) The Controlling Party may waive any Servicer Termination Event. Upon any
such waiver, such Servicer Termination Event shall cease to exist and be deemed to have been cured and not to have occurred, and any Servicer Termination Event arising therefrom shall be deemed to have been cured and not to have occurred for every
purpose of this Agreement, but no such waiver shall extend to any prior, subsequent or other Servicer Termination Event or impair any right consequent thereto. 
  

(c) If replaced, the Servicer agrees that it will use commercially reasonable efforts at its own expense to effect the orderly and efficient transfer
of the servicing of the Receivables to a successor Servicer. 
  
 (d) Upon the effectiveness of the assumption by the successor Servicer of its duties pursuant to this Section 7.1, the successor Servicer shall be the successor in all respects to the Servicer in its capacity as Servicer under
this Agreement with respect to the Receivables, and shall be subject to all the responsibilities, duties and liabilities relating thereto, except with respect to the obligations of the predecessor Servicer that survive its termination as Servicer,
including indemnification obligations as set forth in Section 6.2(e). In such event, the Indenture Trustee and the Owner Trustee are hereby authorized and empowered to execute and deliver, on behalf of the predecessor Servicer, as
attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of such termination and replacement of the Servicer, whether to complete the
transfer and endorsement of the Receivables and related documents, or otherwise. No Servicer shall resign or be relieved of its duties under this Agreement, as Servicer of the Receivables, until a newly appointed Servicer for the Receivables shall
have assumed the responsibilities and obligations of the resigning or terminated Servicer under this Agreement. 
  

 30 

 In connection with such appointment, the Indenture Trustee may make such arrangements for the
compensation of the successor Servicer out of Available Funds as it and such successor Servicer will agree; provided, however, that no such compensation will be in excess of the amount paid to the predecessor Servicer under this Agreement.

  
 SECTION 7.2 Notification to Noteholders. Upon any
termination of, or appointment of a successor to, the Servicer pursuant to this Article VII, the Indenture Trustee will give prompt written notice thereof to the Owner Trustee, the Issuer, the Note Insurer, the Administrator, each Rating Agency and
to the Noteholders at their respective addresses of record. 
  
 ARTICLE VIII 
 OPTIONAL PURCHASE 
  
 SECTION 8.1 Optional Purchase of Trust Estate. The Servicer shall have the right at its option (the “Optional Purchase”) to
purchase the Trust Estate from the Issuer on any Payment Date if, either before or after giving effect to any payment of principal required to be made on such Payment Date, the aggregate Pool Balance is less than or equal to 10% of the sum of
(i) the initial Pool Balance and (ii) initial aggregate Principal Balance of the Subsequent Receivables. The purchase price for the Trust Estate shall equal the Redemption Price (the “Optional Purchase Price”), which
amount shall be deposited by the Servicer into the Collection Account on the Redemption Date. If the Servicer exercises the Optional Purchase, the Notes shall be redeemed and in each case in whole but not in part on the related Payment Date for the
Redemption Price. 
  
 [ARTICLE IX 
 THE NOTE INSURANCE POLICY 
  
 SECTION 9.1 Claims Under Note Insurance Policy. 
  
 (a) In the event that the Servicer’s Certificate with respect to any Determination Date states that there is a Deficiency Amount, or in the event
that the Indenture Trustee has received a certified copy of a final, nonappealable order of an appropriate court or other body exercising jurisdiction of any Preference Amount, the Indenture Trustee shall furnish to the Note Insurer no later than
noon, New York City time, on the first Business Day following the Indenture Trustee’s receipt of such Servicer’s Certificate or certified copy, as applicable, a complete notice substantially in the form of Exhibit A, to the Note Insurance
Policy (a “Notice”) specifying the amount of the Deficiency Amount, provided, that if such Notice is received after noon, New York City time, on such Business Day, it will be deemed to be received before noon, New York City
time, on the following Business Day. If any such Notice is not in proper form or is otherwise insufficient for the purpose of making a claim under the Note Insurance Policy, such Notice will be deemed not to have been received for purposes of making
such claim, and the Insurer will promptly so advise the Indenture Trustee in writing and the Indenture Trustee may submit an amended or corrected Notice. If such an amended or corrected Notice is in proper form and is otherwise sufficient for the
purpose of making a claim under the Note Insurance Policy, it will be deemed to have been timely received on the Business Day of such 

  

 31 

 
resubmission; provided, that if such notice is received after noon, New York City time, it shall be deemed to be received before noon, New York City time, on
the following Business Day. 
  
 (b) The Indenture Trustee shall
establish and maintain an Eligible Account for the benefit of the Noteholders for the exclusive use as an account into which to deposit any proceeds of the Note Insurance Policy (the “Insurance Account”). Upon receipt of an Insured
Payment from the Insurer, the Indenture Trustee shall deposit such Insured Payment in the Insurance Account. All amounts on deposit in the Insurance Account shall remain uninvested. On each Payment Date, the Indenture Trustee shall return any money
in the Insurance Account which does not constitute an Insured Payment (as defined in the Note Insurance Policy) to the Note Insurer. The Indenture Trustee shall distribute on each Payment Date, to the Noteholders, the Insured Payment for such
Payment Date from the Insurance Account in accordance with the priorities set forth in Section 4.4(a). 
  
 (c) The Indenture Trustee will (i) receive as attorney-in-fact of each Noteholder any Insured Payment from the Note Insurer and (ii) distribute
such Insured Payment as set forth in Section 9.1(b). Any and all Insured Payments disbursed by the Indenture Trustee shall not be considered payment by the Issuer with respect to the Notes, and shall not discharge the obligations of the
Issuer with respect thereto. The Note Insurer shall, upon any payment pursuant to the Note Insurance Policy, in furtherance and not in limitation of its equitable right of subrogation and its rights under the Insurance Agreement, to the extent it
makes any payment with respect to the Notes, become subrogated to the rights of any Noteholder to receive any and all amounts due in respect of the Insured Obligations as to which such payment was made. The Note Insurer shall be a co-beneficiary of
the Indenture Trustee’s lien under the Indenture. Subject to and conditioned upon any payment with respect to the Notes by or on behalf of the Note Insurer, the Indenture Trustee shall assign to the Insurer all rights to the payment of interest
or principal with respect to the Notes which are then due for payment to the extent of all payments made by the Note Insurer, and the Note Insurer may exercise any option, vote, right, power or the like with respect to the Notes to the extent that
it has made payment pursuant to the Note Insurance Policy. The foregoing subrogation will in all cases be subject to the rights of the Noteholders to receive all Insured Payments (as defined in the Note Insurance Policy) in respect of the Notes.

  
 (d) The Indenture Trustee will promptly notify the Note
Insurer of any proceeding or the institution of any action (of which a Responsible Officer of the Indenture Trustee has actual knowledge) seeking the avoidance as a preferential transfer under applicable bankruptcy, insolvency, receivership,
rehabilitation or similar law (a “Note Preference Claim”) of any payment made to a Noteholder that has been deemed a preferential transfer and recoverable, or theretofore recovered, from such Noteholder pursuant to Title 11 of
United States Code in accordance with an order of an appropriate court or other body. Each Noteholder, by its purchase of Notes, and the Indenture Trustee hereby agree that so long as the Note Insurer is the Controlling Party, the Note Insurer may
at any time during the continuation of any proceeding relating to a Note Preference Claim direct all matters relating to such Note Preference Claim, including (i) the direction of any appeal of any order relating to any Note Preference Claim
and (ii) the posting of any surety, supersedeas or performance bond pending any such appeal at the expense of the Note Insurer, but subject to reimbursement as provided in the Insurance Agreement. In addition, and without limitation of the
foregoing, as set forth in Section 9.1(c), 

  

 32 

 
the Note Insurer will be subrogated to, and each Noteholder and the Indenture Trustee hereby delegate and assign, to the fullest extent permitted by law, the
rights of the Indenture Trustee and each Noteholder in the conduct of any proceeding with respect to a Note Preference Claim, including all rights of any party to an adversary proceeding action with respect to any court order issued in connection
with any such Note Preference Claim. 
  
 SECTION 9.2 Surrender
of Note Insurance Policy. The Indenture Trustee shall surrender the Note Insurance Policy to the Note Insurer for cancellation upon the expiration of the Note Insurance Policy in accordance with the terms of the Note Insurance Policy.]

  
 ARTICLE X 
 MISCELLANEOUS PROVISIONS 
  
 SECTION 10.1 Amendment. 
  
 (a) Any term or provision of this Agreement may be amended by the Seller and the Servicer, with the prior written consent of the Note Insurer (so long as
the Note Insurer is the Controlling Party), but without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Swap Counterparty or the Owner Trustee; provided that such amendment shall not, as evidenced by an Opinion of
Counsel delivered to the Indenture Trustee and the Owner Trustee, materially and adversely affect the interests of any Noteholder, the Indenture Trustee or the Owner Trustee; provided, further, that such amendment shall be deemed not
to materially and adversely affect the interests of any Noteholder, and no Opinion of Counsel shall be required, if the Rating Agency Condition is satisfied with respect to such amendment; provided, further, that such amendment shall
not materially and adversely affect the rights or obligations of the Swap Counterparty under this Sale and Servicing Agreement unless (i) the Swap Counterparty shall have consented in writing to such amendment (and such consent shall be deemed
to have been given if the Swap Counterparty does not object in writing within ten (10) Business Days after receipt of a written request for such consent) and (ii) the Rating Agency Condition is satisfied with respect to such amendment;
provided, further, that if the Note Insurer is not the Controlling Party, such amendment shall not materially and adversely affect the interests of the Note Insurer without the prior written consent of the Note Insurer. 
  
 (b) Any term or provision of this Agreement may be amended by the Seller and
the Servicer, with the prior written consent of the Note Insurer (so long as the Note Insurer is the Controlling Party) but without the consent of the Indenture Trustee, any Noteholder, the Swap Counterparty, the Issuer, the Owner Trustee or any
other Person to add, modify or eliminate any provisions as may be necessary or advisable in order to enable the Seller, the Servicer or any of their Affiliates to comply with or obtain more favorable treatment under any law or regulation or any
accounting rule or principle, it being a condition to any such amendment that the Rating Agency Condition shall have been satisfied and such amendment shall not materially and adversely affect the rights or obligations of the Swap Counterparty under
this Agreement unless the Swap Counterparty shall have consented in writing to such amendment (and such consent shall be deemed to have been given if the Swap Counterparty does not object in writing within ten (10) Business Days after receipt
of a written request for such consent). 
  

 33 

 (c) This Agreement may also be amended from time to time by the parties hereto, with the prior written
consent of the Controlling Party, for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in any manner the rights of the Noteholders or the Note Insurer;
provided that no such amendment shall (i) reduce the interest rate or principal amount of any Note or delay any Payment Date or the Final Scheduled Payment Date of any Note without the consent of the Holder of such Note, (ii) reduce
the percentage of the Note Balance, the Holders of which are required to consent to any matter without the consent of the Holders of at least the percentage of the Note Balance which were required to consent to such matter before giving effect to
such amendment; provided, further, that if the Note Insurer is not the Controlling Party, no amendment pursuant to this Section 10.1(c) shall materially and adversely affect the interests of the Note Insurer without the
prior written consent of the Note Insurer; provided, further, that such amendment shall not materially and adversely affect the rights or obligations of the Swap Counterparty under this Sale and Servicing Agreement unless (i) the
Swap Counterparty shall have consented in writing to such amendment (and such consent shall be deemed to have been given if the Swap Counterparty does not object in writing within ten (10) Business Days after receipt of a written request for
such consent) and (ii) the Rating Agency Condition is satisfied with respect to such amendment. It will not be necessary for the consent of Noteholders to approve the particular form of any proposed amendment or consent, but it will be
sufficient if such consent approves the substance thereof. The manner of obtaining such consents (and any other consents of Noteholders provided for in this Agreement) and of evidencing the authorization of the execution thereof by Noteholders will
be subject to such reasonable requirements as the Indenture Trustee may prescribe, including the establishment of record dates pursuant to the Note Depository Agreement. 
  
 (d) Prior to the execution of any amendment to this Agreement, the Servicer shall provide written notification of the
substance of such amendment to each Rating Agency; and promptly after the execution of any such amendment or consent, the Servicer shall furnish a copy of such amendment or consent to each Rating Agency and the Indenture Trustee. 
  
 (e) Prior to the execution of any amendment to this Agreement, the Seller,
the Note Insurer, the Owner Trustee and the Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement and that all
conditions precedent to the execution and delivery of such amendment have been satisfied. The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter into any such amendment which adversely affects the Owner Trustee’s
or the Indenture Trustee’s, as applicable, own rights, duties or immunities under this Agreement. Furthermore, notwithstanding anything to the contrary herein, this Agreement may not be amended in any way that would adversely affect the Owner
Trustee’s rights, privileges, indemnities, duties or obligations under this Agreement, the Transaction Documents or otherwise without the prior written consent of the Owner Trustee. 
  
 SECTION 10.2 Protection of Title. 
  
 (a) The Seller shall authorize and file such financing statements and cause to be authorized and filed such continuation and
other statements, all in such manner and in such places as may be required by law fully to preserve, maintain and protect the interest of the Issuer, 

  

 34 

 
the Note Insurer, and the Indenture Trustee under this Agreement in the Purchased Assets (other than any Purchased Assets with respect thereto, to the extent
that the interest of the Issuer, the Note Insurer or the Indenture Trustee therein cannot be perfected by the filing of a financing statement). The Seller shall deliver (or cause to be delivered) to the Issuer file-stamped copies of, or filing
receipts for, any document filed as provided above, as soon as available following such filing. 
  
 (b) None of the Issuer, the Seller or the Servicer shall change its name, identity, organizational structure or jurisdiction of organization in any manner
that would make any financing statement or continuation statement filed by the Seller in accordance with paragraph (a) above “seriously misleading” within the meaning of Sections 9-506, 9-507 or 9-508 of the UCC, unless it shall have
given the Issuer, the Note Insurer and the Indenture Trustee at least five days’ prior written notice thereof and, to the extent necessary, has promptly filed amendments to previously filed financing statements or continuation statements
described in paragraph (a) above. 
  
 (c) The Seller
shall give the Issuer, the Note Insurer and the Indenture Trustee at least five days’ prior written notice of any change of location of the Seller for purposes of Section 9-307 of the UCC and shall have taken all action prior to making
such change (or shall have made arrangements to take such action substantially simultaneously with such change, if it is not possible to take such action in advance) reasonably necessary or advisable to amend all previously filed financing
statements or continuation statements described in paragraph (a) above. 
  
 (d) The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) accounts and records as to each Receivable accurately and in sufficient detail to permit (i) the reader thereof to know at any time
the status of such Receivable, including payments and recoveries made and payments owing (and the nature of each) and (ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the amounts from time to time
deposited in the Collection Account in respect of such Receivable. 
  
 (e) The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) its computer systems so that, from time to time after the conveyance under this Agreement of the Receivables, the master computer records (including any backup
archives) that refer to a Receivable shall indicate clearly the interest of the Issuer in such Receivable and that such Receivable is owned by the Issuer and has been pledged to the Indenture Trustee on behalf of the Indenture Secured Parties
pursuant to the Indenture. Indication of the Issuer’s and the Indenture Trustee’s interest in a Receivable shall not be deleted from or modified on such computer systems until, and only until, the related Receivable shall have been paid in
full or repurchased. 
  
 (f) If at any time the Servicer shall
propose to sell, grant a security interest in or otherwise transfer any interest in motor vehicle receivables to any prospective purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser, lender or other transferee
computer tapes, records or printouts (including any restored from backup archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been sold and is owned by the Issuer and has
been pledged to the Indenture Trustee on behalf of the Indenture Secured Parties. 
  

 35 

 SECTION 10.3 Other Liens or Interests. Except for the conveyances and grants of security interests
pursuant to this Agreement and the other Transaction Documents, the Seller shall not sell, pledge, assign or transfer the Receivables or other property transferred to the Issuer to any other Person, or grant, create, incur, assume or suffer to exist
any Lien on any interest therein, and the Seller shall defend the right, title and interest of the Issuer in, to and under such Receivables and other property transferred to the Issuer against all claims of third parties claiming through or under
the Seller. 
  
 SECTION 10.4 Transfers Intended as Sale;
Security Interest. 
  
 (a) Each of the parties hereto
expressly intends and agrees that the transfers contemplated and effected under this Agreement are complete and absolute sales and transfers rather than pledges or assignments of only a security interest and shall be given effect as such for all
purposes. It is further the intention of the parties hereto that the Receivables and related Transferred Assets shall not be part of the Seller’s estate in the event of a bankruptcy or insolvency of the Seller. The sales and transfers by the
Seller of Receivables and related Transferred Assets hereunder are and shall be without recourse to, or representation or warranty (express or implied) by, the Seller, except as otherwise specifically provided herein. The limited rights of recourse
specified herein against the Seller are intended to provide a remedy for breach of representations and warranties relating to the condition of the property sold, rather than to the collectibility of the Receivables. 
  
 (b) Notwithstanding the foregoing, in the event that the Receivables and
other Transferred Assets are held to be property of the Seller, or if for any reason this Agreement is held or deemed to create indebtedness or a security interest in the Receivables and other Transferred Assets, then it is intended that:

  
 (i) This Agreement shall be deemed to be a
security agreement within the meaning of Articles 8 and 9 of the New York Uniform Commercial Code and the Uniform Commercial Code of any other applicable jurisdiction; 
  
 (ii) The conveyance provided for in Section 2.1 shall be deemed to be a grant by the Seller, and
the Seller hereby grants, to the Issuer of a security interest in all of its right (including the power to convey title thereto), title and interest, whether now owned or hereafter acquired, in and to the Receivables and other Transferred Assets, to
secure such indebtedness and the performance of the obligations of the Seller hereunder; 
  
 (iii) The possession by the Issuer, or the Servicer as the Issuer’s agent, of the Receivables Files and any other property as
constitute instruments, money, negotiable documents or chattel paper shall be deemed to be “possession by the secured party” or possession by the purchaser or a person designated by such purchaser, for purposes of perfecting the security
interest pursuant to the New York Uniform Commercial Code and the Uniform Commercial Code of any other applicable jurisdiction; and 
  
 (iv) Notifications to persons holding such property, and acknowledgments, receipts or confirmations from persons holding such property,
shall be 

  

 36 

 
deemed to be notifications to, or acknowledgments, receipts or confirmations from, bailees or agents (as applicable) of the Issuer for the purpose of
perfecting such security interest under applicable law. 
  
 SECTION 10.5 Notices, Etc. All demands, notices and communications hereunder shall be in writing and shall be delivered or mailed by registered or certified first-class United States mail, postage prepaid, hand delivery, prepaid
courier service, or by facsimile, and addressed in each case as set forth on Schedule II or at such other address as shall be designated in a written notice to the other parties hereto. Any notice required or permitted to be mailed to a
Noteholder shall be given by first class mail, postage prepaid, at the address of such Noteholder as shown in the Note Register. Delivery shall occur only upon receipt or reported tender of such communication by an officer of the recipient entitled
to receive such notices located at the address of such recipient for notices hereunder; provided, however, that any notice to a Noteholder mailed within the time prescribed in this Agreement shall be conclusively presumed to have been duly
given, whether or not the Noteholder shall receive such notice. 
  
 SECTION 10.6 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW BUT EXCLUDING TO THE MAXIMUM EXTENT PERMITTED BY LAW ALL OTHER RULES THEREOF RELATING TO CONFLICTS OF LAW AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

  
 SECTION 10.7 Headings. The section headings hereof have
been inserted for convenience of reference only and shall not be construed to affect the meaning, construction or effect of this Agreement. 
  
 SECTION 10.8 Counterparts. This Agreement may be executed in any number of counterparts, each of which so executed shall be deemed to be an
original, but all of such counterparts shall together constitute but one and the same instrument. 
  
 SECTION 10.9 Waivers. No failure or delay on the part of the Servicer, the Seller, the Note Insurer, the Issuer or the Indenture Trustee in
exercising any power or right hereunder (to the extent such Person has 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 any party hereto in any case shall entitle it to any notice or demand in similar or other circumstances. No waiver or approval by any party hereto 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.

  
 SECTION 10.10 Entire Agreement. 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 

  

 37 

 
the subject matter thereof, superseding all prior oral or written understandings. There are no unwritten agreements among the parties. 
  
 SECTION 10.11 Severability of Provisions. If any one or more of the
covenants, agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or
terms of this Agreement and shall in no way affect the validity or enforceability of the other provisions of this Agreement. 
  
 SECTION 10.12 Binding Effect. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and permitted assigns. 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. 

 
 SECTION 10.13 Acknowledgment and Agreement. By execution below, the
Seller expressly acknowledges and consents to the pledge, assignment and grant of a security interest in the Receivables and the other Transferred Assets by the Issuer to the Indenture Trustee on behalf of the Indenture Secured Parties pursuant to
the Indenture for the benefit of the Indenture Secured Parties. In addition, the Seller hereby acknowledges and agrees that for so long as the Notes are outstanding, the Indenture Trustee will have the right to exercise all powers, privileges and
claims of the Issuer under this Agreement. 
  
 SECTION 10.14
Cumulative Remedies. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
  
 SECTION 10.15 Nonpetition Covenant. Each party hereto agrees that, prior to the date which is one year and one day after payment in full of all
obligations of each Bankruptcy Remote Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other
proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking the appointment
of an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of, its creditors generally, any party hereto or any other creditor of such
Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence or join with any other Person in commencing any proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or
statute now or hereafter in effect in any jurisdiction. This Section shall survive the termination of this Agreement. 
  

 38 

 SECTION 10.16 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto hereby
irrevocably and unconditionally: 
  
 (a) submits for itself and
its property in any legal action or proceeding relating to this Agreement or any documents executed and delivered in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction
of the courts of the State of New York, the courts of the United States of America for the Southern District of New York and appellate courts from any thereof; 
  

(b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue
of such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 
  

(c) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any
substantially similar form of mail), postage prepaid, to such Person at its address determined in accordance with Section 10.5 of this Agreement; 
  
 (d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in
any other jurisdiction; and 
  
 (e) to the extent permitted by
applicable law, each party hereto irrevocably waives all right of trial by jury in any action, proceeding or counterclaim based on, or arising out of, under or in connection with this Agreement, any other Transaction Document, or any matter arising
hereunder or thereunder. 
  
 SECTION 10.17 Limitation of
Liability. 
  
 (a) Notwithstanding anything contained herein
to the contrary, this Agreement has been executed and delivered by Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee, and in no event shall it have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or under the Notes or any of the other Transaction Documents or in any of the certificates, notices or agreements delivered pursuant thereto, as to all of which recourse shall be had solely to
the assets of the Issuer. Under no circumstances shall the Owner Trustee be personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the breach or failure of any obligations, representation, warranty or
covenant made or undertaken by the Issuer under the Transaction Documents. For the purposes of this Agreement, in the performance of its duties or obligations hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the
terms and provisions of Articles VI, VII and VIII of the Trust Agreement. 
  
 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed and delivered by JPMorgan Chase Bank, N.A., not in its individual capacity but solely as Indenture Trustee, and in no
event shall it have any liability for the representations, warranties, covenants, agreements or other obligations of the Issuer under the Notes or any of the other Transaction Documents or in any of the certificates, notices or agreements delivered
pursuant thereto, as to all of which recourse shall be had solely to the assets of the Issuer; provided that the Indenture Trustee will be responsible for its actions as Indenture Trustee hereunder and under the Indenture. Under no
circumstances shall the 

  

 39 

 
Indenture Trustee be personally liable for the payment of any indebtedness or expense of the Issuer or be liable for the breach or failure of any
obligations, representation, warranty or covenant made or undertaken by the Issuer under the Transaction Documents. For the purposes of this Agreement, in the performance of its duties or obligations hereunder, the Indenture Trustee shall be subject
to, and entitled to the benefits of, the terms and provisions of Article VI of the Indenture. 
  
 SECTION 10.18 Third-Party Beneficiaries. This Agreement shall inure to the benefit of and be binding upon the parties hereto, the Noteholders and
the Residual Interestholders and their respective successors and permitted assigns and each of the Owner Trustee, the Note Insurer and the Swap Counterparty shall be an express third party beneficiary hereof and may enforce the provisions hereof as
if it were a party hereto. Except as otherwise provided in this Section, no other Person will have any right hereunder. 
  
 SECTION 10.19 Limitation of Rights. 
  
 (a) All of the rights of the Note Insurer in, to and under this Agreement (including, but not limited to, all of the Note Insurer’s rights as a third
party beneficiary of this Agreement and all of the Note Insurer’s rights to receive notice of any action hereunder and to give or withhold consent to any action hereunder) shall terminate upon the termination of the Insurance Agreement in
accordance with the terms thereof and the payment in full of all amounts owing to the Note Insurer. 
  
 (b) All of the rights of the Swap Counterparty in, to and under this Agreement (including, but not limited to, all of the Swap Counterparty’s rights
as a third party beneficiary of this Agreement and all of the Swap Counterparty’s rights to receive notice of any action hereunder and to give or withhold consent to any action hereunder) shall terminate upon the termination of the Interest
Rate Swap Agreement in accordance with the terms thereof and the payment in full of all amounts owing to the Swap Counterparty. 
  
 SECTION 10.20 Regulation AB. The Seller and the Servicer acknowledge and agree that the purpose of this Section 10.20 is to facilitate
compliance by the Seller with the provisions of Regulation AB and related rules and regulations of the Commission. The Seller shall not exercise its right to request delivery of information or other performance under these provisions other than in
good faith, or for purposes other than compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission under the Securities Act and the Exchange Act. The Servicer acknowledges that interpretations of the
requirements of Regulation AB may change over time, whether due to interpretive guidance provided by the Commission or its staff, consensus among participants in the asset-backed securities markets, advice of counsel, or otherwise, and agrees to
comply with requests made by the Seller in good faith for delivery of information under these provisions on the basis of evolving interpretations of Regulation AB. The Servicer shall cooperate fully with the Seller to deliver to the Seller
(including any of its assignees or designees) any and all statements, reports, certifications, records and any other information necessary in the good faith determination of the Seller to permit the Seller to comply with the provisions of Regulation
AB, together with such disclosures relating to the Servicer and the Receivables, or the servicing of the Receivables, reasonably believed by the Servicer to be necessary in order to effect such compliance. 
  

 40 

 [SIGNATURES FOLLOW] 
  

 41 

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

					
	 CAPITAL ONE AUTO RECEIVABLES, LLC, as Seller

		
	By:	 	 
	 	 	 Name:
	 	 Albert A. Ciafre

	 	 	 Title:
	 	 Assistant Vice President

  

					
	 	  	A-1	  	Sale and Servicing Agreement (20[ ]-[ ])

							
	CAPITAL ONE AUTO FINANCE TRUST 20[    ]-[    ],
as Issuer
			
	By:	 	 	 	WILMINGTON TRUST COMPANY,
	 	 	 	 	not in its individual capacity but
	 	 	 	 	solely as Owner Trustee
			
	By:	 	 	 	 
	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 

  

					
	 	  	A-2	  	Sale and Servicing Agreement (20[ ]-[ ])

							
	 CAPITAL ONE AUTO FINANCE, INC., as Servicer

			
	By:	 	 	 	 
	 	 	 	 	 Name:
	 	 Jerry Hamstead

	 	 	 	 	 Title:
	 	 Assistant Vice President

  

					
	 	  	A-3	  	Sale and Servicing Agreement (20[ ]-[ ])

							
	JPMORGAN CHASE BANK, N.A., not in its individual capacity but solely as Indenture Trustee
			
	By:	 	 	 	 
	 	 	 	 	 Name:
	 	 
	 	 	 	 	 Title:
	 	 

  

					
	 	  	A-4	  	Sale and Servicing Agreement (20[ ]-[ ])

 APPENDIX A 
  

DEFINITIONS 
  
 The following terms have the meanings set forth, or referred to, below: 
  
 “Accrued Note Interest” shall mean, with respect to any Payment Date, the sum of the Noteholders’
Monthly Accrued Interest for such Payment Date and the Noteholders’ Interest Carryover Shortfall for such Payment Date. 
  
 “Act” has the meaning set forth in Section 11.3(a) of the Indenture. 
  
 “Administration Agreement” means the Administration
Agreement, dated as of the Closing Date, between the Administrator, the Issuer and the Indenture Trustee, as the same may be amended and supplemented from time to time. 
  
 “Administrator” means COAF, or any successor Administrator under the Administration Agreement. 

 
 “Affiliate” means, for any specified Person, any other
Person which, directly or indirectly, controls, is controlled by or is under common control with such specified Person and “affiliated” has a meaning correlative to the foregoing. For purposes of this definition, “control” means
the power, directly or indirectly, to cause the direction of the management and policies of a Person. 
  
 “Applicable Tax State” shall mean, as of any date, each State as to which any of the following is then applicable: (a) a State in
which the Owner Trustee maintains its Corporate Trust Office, (b) a State in which the Owner Trustee maintains its principal executive offices, and (c) the States of Virginia and Texas. 
  
 “Authenticating Agent” means any Person authorized by the
Indenture Trustee to act on behalf of the Indenture Trustee to authenticate and deliver the Notes. 
  
 “Authorized Newspaper” means a newspaper of general circulation in the City of New York, printed in the English language and customarily
published on each Business Day, whether or not published on Saturdays, Sundays and holidays. 
  
 “Authorized Officer” means (a) with respect to the Issuer, (i) any officer of the Owner Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is
identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the Closing Date or (ii) so long as the Administration Agreement is in effect, any officer of the Administrator who is authorized to act
for the Administrator in matters relating to the Issuer pursuant to the Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Owner Trustee and the Indenture Trustee on the Closing
Date (as such list may be modified or supplemented from time to time thereafter) and (b) with respect to the Owner Trustee, the Indenture Trustee and the Servicer, any officer of the Owner Trustee, the Indenture Trustee or the Servicer, as
applicable, who is authorized to act for the Owner Trustee, the Indenture Trustee or the Servicer, as applicable, in matters relating to the Owner Trustee, the Indenture Trustee or the Servicer and who is identified 

  

					
	 	  	A-1	  	Sale and Servicing Agreement (20[ ]-[ ])

 
on the list of Authorized Officers delivered by each of the Owner Trustee, the Indenture Trustee and the Servicer to the Indenture Trustee on the Closing
Date (as such list may be modified or supplemented from time to time thereafter). 
  
 “Available Funds” means, for any Payment Date and the related Collection Period, an amount equal to the sum of the following amounts: (i) all Collections received by the Servicer during such
Collection Period, (ii) the sum of the Repurchase Prices deposited into the Collection Account with respect to each Receivable that is to become a Repurchased Receivable during the related Collection Period, (iii) the investment income
accrued during such Collection Period from the investment of funds in the Trust Accounts, (iv) the Reserve Account Excess Amount, (v) the Net Swap Receipts (excluding Swap Termination Payments received from the Swap Counterparty and
deposited into the Swap Termination Payment Account), (vi) amounts on deposit in the Swap Termination Payment Account to the extent such amounts are required to be included in Available Funds pursuant to Section 4.8(d) of the Sale
and Servicing Agreement and (vii) Swap Replacement Proceeds, to the extent required to be included in Available Funds pursuant to Section 4.8(f) of the Sale and Servicing Agreement. 
  
 “Available Funds Shortfall Amount” means, as of any Payment
Date, the amount by which the amounts required to be paid pursuant to clauses first through sixth of Section 4.4(a) of the Sale and Servicing Agreement exceeds the Available Funds for such Payment Date. 
  
 “Bankruptcy Code” means the United States Bankruptcy Code,
11 U.S.C. 101 et seq., as amended. 
  
 “Bankruptcy
Event” means, with respect to any Person, (i) the filing of a decree or order for relief by a court having jurisdiction in the premises in respect of such Person in an involuntary case under any applicable federal or state bankruptcy,
insolvency or other similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person, or ordering the winding-up or liquidation of such Person’s affairs,
and such decree or order shall remain unstayed and in effect for a period of 60 consecutive days or (ii) the commencement by such Person of a voluntary case under any applicable federal or state bankruptcy, insolvency or other similar law now
or hereafter in effect, or the consent by such Person to the entry of an order for relief in an involuntary case under any such law, or the consent by such Person to the appointment or taking possession by a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of such Person, or the making by such Person of any general assignment for the benefit of creditors, or the failure by such Person generally to pay its debts as such debts become due, or the
taking of action by such Person in furtherance of any of the foregoing. 
  
 “Bankruptcy Remote Party” means each of the Seller, the Issuer, any other trust created by the Seller or any limited liability company or corporation wholly-owned by the Seller. 
  
 “Benefit Plan” means (i) any “employee benefit
plan” whether or not subject to ERISA, (ii) a “plan” described by Section 4975(e)(1) of the Code or (iii) any entity deemed to hold the assets of any of the foregoing by reason of an employee benefit plan’s or
other plan’s investment in such entity. 
  

					
	 	  	A-2	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of
which shall be made through book entries by a Clearing Agency as described in Section 2.10 of the Indenture. 
  
 “Business Day” means any day other than a Saturday, a Sunday or a day on which banking institutions in the states of Delaware,
California, Texas, Virginia or New York, or in the state in which the Corporate Trust Office of the Indenture Trustee is located, are authorized or obligated by law, executive order or government decree to be closed. 
  
 “Certificate” means a certificate substantially in the form
of Exhibit A to the Trust Agreement evidencing the Residual Interest, as such Certificate may be issued pursuant to the Trust Agreement at the request of the Residual Interestholder. 
  
 “Certificate of Title” means, with respect to any Financed
Vehicle, the certificate of title or other documentary evidence of ownership of such Financed Vehicle as issued by the department, agency or official of the jurisdiction (whether in paper or electronic form) in which such Financed Vehicle is titled
responsible for accepting applications for, and maintaining records regarding, certificates of title and liens thereon. 
  
 “Certificate of Title Repurchase Event” means, with respect to any Receivable, (a) the original Certificate of Title has not been
received by the Servicer for inclusion in the related Receivable File by the Required Title Delivery Date for such Receivable, (b) the failure of such items to be so received materially and adversely affects the interests of the Issuer, the
Noteholders or the Note Insurer (as determined by the Note Insurer in its reasonable discretion, unless the Note Insurer is not the Controlling Party) in such Receivable and (c) the failure to repurchase such Receivable would not cause the
Title Delivery Failure Percentage to exceed 0.50% as of the Required Title Delivery Date for such Receivable. 
  
 “Certificateholder” means any Holder of a Certificate. 
  
 “Class” means a group of Notes whose form is identical except for variation in denomination, principal
amount or owner, and references to “each Class” thus mean each of the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes. 
  
 “Class A Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes, collectively. 
  
 “Class A-1 Final
Scheduled Payment Date” shall mean the Payment Date occurring in [            ]. 
  
 “Class A-1 Interest Rate” means [            ]% per annum (computed on the
basis of the actual number of days elapsed, but assuming a 360-day year). 
  
 “Class A-1 Note Balance” means, at any time, the Initial Class A-1 Note Balance reduced by all payments of principal made prior to such time on the Class A-1 Notes. 
  
 “Class A-1 Noteholder” means the Person in whose name a
Class A-1 Note is registered on the Note Register. 
  

					
	 	  	A-3	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Class A-1 Notes” means the Class of Auto Loan Asset Backed Notes designated as
Class A-1 Notes, issued in accordance with the Indenture. 
  
 “Class A-2 Final Scheduled Payment Date” shall mean the Payment Date occurring in [            ]. 
  
 “Class A-2 Interest Rate” means [            ]%
per annum (computed on the basis of a 360-day year of twelve 30-day months). 
  
 “Class A-2 Note Balance” means, at any time, the Initial Class A-2 Note Balance reduced by all payments of principal made prior to such time on the Class A-2 Notes. 
  
 “Class A-2 Noteholder” means the Person in whose name a
Class A-2 Note is registered on the Note Register. 
  
 “Class A-2 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-2 Notes, issued in accordance with the Indenture. 
  
 “Class A-3 Final Scheduled Payment Date” shall mean the Payment Date occurring in
[            ]. 
  
 “Class A-3 Interest Rate” means [            ]% per annum (computed on the basis of a 360-day year of twelve 30-day months). 
  
 “Class A-3 Note Balance” means, at any time, the Initial
Class A-3 Note Balance reduced by all payments of principal made prior to such time on the Class A-3 Notes. 
  
 “Class A-3 Noteholder” shall mean the Person in whose name a Class A-3 Note is registered on the Note Register. 
  
 “Class A-3 Notes” means the Class of Auto Loan Asset Backed
Notes designated as Class A-3 Notes, issued in accordance with the Indenture. 
  
 “Class A-4 Final Scheduled Payment Date” shall mean the Payment Date occurring in [            ]. 
  
 “Class A-4 Interest Rate” means the sum of LIBOR plus
[            ]% per annum (computed on the basis of the actual number of days elapsed, but assuming a 360-day year). 
  
 “Class A-4 Note Balance” means, at any time, the Initial Class A-4 Note Balance reduced by all
payments of principal made prior to such time on the Class A-4 Notes. 
  
 “Class A-4 Noteholder” shall mean the Person in whose name a Class A-4 Note is registered on the Note Register. 
  
 “Class A-4 Notes” means the Class of Auto Loan Asset Backed Notes designated as Class A-4 Notes,
issued in accordance with the Indenture. 
  

					
	 	  	A-4	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Clearing Agency” means an organization registered as a “clearing agency”
pursuant to Section 17A of the Exchange Act and shall initially be DTC. 
  
 “Clearing Agency Participant” means a broker, dealer, bank or other financial institution or other Person for which from time to time a Clearing Agency effects book-entry transfers and pledges of
securities deposited with the Clearing Agency. 
  
 “Closing Date” means [                    ]. 
  
 “COAF” means Capital One Auto Finance, Inc., a Texas corporation, and its successors and assigns.

  
 “Code” means the Internal Revenue Code of
1986, as amended, modified or supplemented from time to time, and any successor law thereto, and the regulations promulgated and the rulings issued thereunder. 
  

“Collateral” has the meaning set forth in the Granting Clause of the Indenture. 
  
 “Collections” means, with respect to any Receivable and to
the extent received by the Servicer after the applicable Cut-Off Date, (i) any monthly payment by or on behalf of the Obligor thereunder, (ii) any full or partial prepayment of such Receivable, (iii) all Liquidation Proceeds and
(iv) any other amounts received by the Servicer which, in accordance with the Customary Servicing Practices, would customarily be applied to the payment of accrued interest or to reduce the Principal Balance of the Receivable, including rebates
of premiums with respect to the cancellation or termination of any Insurance Policy, extended warranty or service contract; provided, however, that the term “Collections” in no event will include (1) any amounts
in respect of any Receivable the Repurchase Price of which has been included in the Available Funds on a prior Payment Date or (2) any Supplemental Servicing Fees. 
  
 “Collection Account” means the trust account established and maintained pursuant to Section 4.1
of the Sale and Servicing Agreement. 
  
 “Collection
Period” means the period commencing on the first day of each calendar month and ending on the last day of such calendar month (or, in the case of the initial Collection Period, the period commencing on the close of business on the Initial
Cut-Off Date and ending on [                    ]). As used herein, the “related” Collection Period with respect to a Payment Date shall be
deemed to be the Collection Period which precedes such Payment Date. 
  
 “Commission” means the U.S. Securities and Exchange Commission. 
  
 “Contract” means, with respect to any Receivable, the motor vehicle retail installment sales contract and/or note and security agreement, the installment loan agreement, any amendments thereto and any
related documentary draft, if applicable, evidencing such Receivable. 
  
 “Contract Rate” means, with respect to a Receivable, the rate per annum at which interest accrues under the Contract evidencing such Receivable. Such rate may be less than the “Annual Percentage Rate” disclosed in
the Receivable. 
  

					
	 	  	A-5	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Controlling Party” means the Note Insurer, provided that if a Note Insurer
Default has occurred and is continuing, then the Controlling Party means the Indenture Trustee acting at the direction of the Noteholders evidencing not less than a majority of the Note Balance. 
  
 “Corporate Trust Office” means: 
  
 (a) as used with respect to Indenture Trustee, the principal office of the
Indenture Trustee at which at any particular time its corporate trust business shall be administered which office at date of the execution of the Indenture is located at (i) solely for purposes of the surrender or exchange of Notes, 2001 Bryan
Street, 10th Floor, Dallas, Texas 75201, Attention: Worldwide Securities Services/Structured Finance Services –
Capital One Auto Finance Trust 20[    ]-[    ] and (ii) for all other purposes, 4 New York Plaza, 6th Floor, New York, New York 10004-2477 (telecopier no. (212) 623-5932), Attention: Worldwide Services/Global Debt – Capital One Auto Finance Trust
20[    ]-[    ], or at such other address as the Indenture Trustee may designate from time to time by notice to the Noteholders, the Swap Counterparty, the Administrator, the Servicer, the Note Insurer and the
Issuer, or the principal corporate trust office of any successor Indenture Trustee (the address of which the successor Indenture Trustee will notify the Noteholders, the Administrator, the Servicer and the Owner Trustee); and 
  
 (b) as used with respect to Owner Trustee, the corporate trust office of the
Owner Trustee located at 1100 North Market Street, Rodney Square North, Wilmington, Delaware 19890-0001 (telecopier no. (302) 636-4140), Attention: Corporate Trust Department, or at such other address as the Owner Trustee may designate by
notice to the Residual Interestholder and the Seller, or the principal corporate trust office of any successor Owner Trustee (the address of which the successor Owner Trustee will notify the Residual Interestholder and the Seller). 
  
 “Cram Down Loss” means, with respect to any Receivable
(other than a Defaulted Receivable) as to which any court in any bankruptcy, insolvency or other similar proceeding issues an order reducing the principal amount to be paid on such Receivable or otherwise modifies any payment terms with respect
thereto, an amount equal to the greater of (i) the amount of the principal reduction ordered by such court and (ii) the difference between the Principal Balance of such Receivable at the time of such court order and the net present value
(using a discount rate which is the higher of the Contract Rate of such Receivable or the rate of interest specified by such court order) of the remaining scheduled payments to be paid on such Receivable as modified or restructured. A “Cram
Down Loss” will be deemed to have occurred on the date of issuance of such court’s order. 
  
 “Cumulative Net Charge-Off Ratio” has the meaning specified in the Insurance Agreement. 
  
 “Customary Servicing Practices” means the customary
servicing practices of the Servicer or any Sub-Servicer with respect to all comparable motor vehicle receivables that the Servicer or such Sub-Servicer, as applicable, services for itself or others, as such customary servicing practices may be
changed from time to time, it being understood that the Servicer and the Sub-Servicers may not have the same “Customary Servicing Practices.” 
  

					
	 	  	A-6	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Cut-Off Date” means, (i) with respect to any Receivable transferred on the Closing
Date, the Initial Cut-Off Date and (ii) with respect to Receivables transferred on any Funding Date, the applicable Subsequent Cut-Off Date. 
  
 “Dealer” means a motor vehicle dealership. 
  
 “Default” means any occurrence that is, or with notice or lapse of time or both would become, an Event of Default. 
  
 “Defaulted Receivable” means, with respect to any Collection
Period, a Receivable as to which (a) all or any part of a scheduled payment is 120 or more days past due and the Servicer has not repossessed the related Financed Vehicle, (b) the Servicer has either repossessed and liquidated the related
Financed Vehicle or repossessed and held the related Financed Vehicle in its repossession inventory for 90 days, whichever occurs first, or (c) the Servicer has, in accordance with its Customary Servicing Practices, determined that such
Receivable has or should be written off as uncollectible; provided, however, that this definition may be modified in accordance with modifications to the Servicer’s Customary Servicing Practices. The Principal Balance of any Receivable that
becomes a “Defaulted Receivable” will be deemed to be zero as of the date it becomes a “Defaulted Receivable”. 
  
 “Deficiency Amount” has the meaning specified in the Note Insurance Policy. 
  
 “Definitive Note” means a definitive fully registered Note issued pursuant to Section 2.12 of
the Indenture. 
  
 “Delivery” when used with
respect to Trust Account Property means: 
  
 (a)
with respect to (I) bankers’ acceptances, commercial paper, negotiable certificates of deposit and other obligations that constitute “instruments” as defined in Section 9-102(47) of the UCC and are susceptible of physical
delivery, transfer of actual possession thereof to the Indenture Trustee or its nominee or custodian by physical delivery to the Indenture Trustee or its nominee or custodian endorsed to, or registered in the name of, the Indenture Trustee or its
nominee or custodian or endorsed in blank, and (II) with respect to a “certificated security” (as defined in Section 8-102(a)(4) of the UCC) transfer of actual possession thereof (i) by physical delivery of such certificated
security to the Indenture Trustee or its nominee or custodian endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank, or to another person, other than a “securities intermediary”
(as defined in Section 8-102(14) of the UCC), who acquires possession of the certificated security on behalf of the Indenture Trustee or its nominee or custodian or, having previously acquired possession of the certificate, acknowledges that it
holds for the Indenture Trustee or its nominee or custodian or (ii) by delivery thereof to a “securities intermediary”, endorsed to or registered in the name of the Indenture Trustee or its nominee or custodian, or endorsed in blank,
and the making by such “securities intermediary” of entries on its books and records identifying such certificated securities as belonging to the Indenture Trustee or its nominee or custodian and the sending by such “securities
intermediary” of a confirmation of the purchase of such certificated security by the Indenture Trustee or its nominee or 

  

					
	 	  	A-7	  	Sale and Servicing Agreement (20[ ]-[ ])

 
custodian (all of the foregoing, “Physical Property”), and, in any event, any such Physical Property in registered form shall be in the name
of the Indenture Trustee or its nominee or custodian; and such additional or alternative procedures as may hereafter become appropriate to effect the complete transfer of ownership of any such Trust Account Property to the Indenture Trustee or its
nominee or custodian, consistent with changes in applicable law or regulations or the interpretation thereof; 
  
 (b) with respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association or the other government agencies, instrumentalities and establishments of the United States identified in Appendix A to Federal Reserve Bank Operating Circular No. 7 as in effect from time to time that is a “book-entry
security” (as such term is defined in Federal Reserve Bank Operating Circular No. 7) held in a securities account and eligible for transfer through the Fedwire® Securities Service operated by the Federal Reserve System pursuant to Federal book-entry regulations, the following procedures, all
in accordance with applicable law, including applicable Federal regulations and Articles 8 and 9 of the UCC: book-entry registration of such Trust Account Property to an appropriate securities account maintained with a Federal Reserve Bank by a
“participant” (as such term is defined in Federal Reserve Bank Operating Circular No. 7) that is a “depository institution” (as defined in Section 19(B)(1)(A) of the Federal Reserve Act) pursuant to applicable Federal
regulations, and issuance by such depository institution of a deposit advice or other written confirmation of such book-entry registration to the Indenture Trustee or its nominee or custodian of the purchase by the Indenture Trustee or its nominee
or custodian of such book-entry securities; the making by such depository institution of entries in its books and records identifying such book entry security held through the Federal Reserve System pursuant to Federal book-entry regulations or a
security entitlement thereto as belonging to the Indenture Trustee or its nominee or custodian and indicating that such depository institution holds such Trust Account Property solely as agent for the Indenture Trustee or its nominee or custodian;
and such additional or alternative procedures as may hereafter become appropriate to effect complete transfer of ownership of any such Trust Account Property to the Indenture Trustee or its nominee or custodian, consistent with changes in applicable
law or regulations or the interpretation thereof; and 
  
 (c) with respect to any item of Trust Account Property that is an uncertificated security (as defined in Section 8-102(a)(18) of the UCC) and that is not governed by clause (b) above, (i) registration on the books and records
of the issuer thereof in the name of the Indenture Trustee or its nominee or custodian, or (ii) registration on the books and records of the issuer thereof in the name of another person, other than a securities intermediary, who acknowledges
that it holds such uncertificated security for the benefit of the Indenture Trustee or its nominee or custodian. 
  
 “Depositor” means the Seller in its capacity as Depositor under the Trust Agreement. 
  
 “Determination Date” means the third Business Day preceding
the related Payment Date, beginning [                    ]. 
  

					
	 	  	A-8	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Dollar” and “$” mean lawful currency of the United States of America.

  
 “DTC” means The Depository Trust Company, and
its successors. 
  
 “Eligible Account” means
either (a) a segregated account with an Eligible Institution or (b) a segregated trust account with the corporate trust department of a depository institution acting in its fiduciary capacity organized under the laws of the United States
of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and acting as trustee for funds deposited in such account, so long as the long-term unsecured debt of
such depository institution shall have a credit rating from each Rating Agency in one of its generic rating categories which signifies investment grade. Any such trust account may be maintained with the Owner Trustee, the Indenture Trustee or any of
their respective Affiliates, if such accounts meet the requirements described in clause (b) of the preceding sentence. 
  
 “Eligible Institution” means a depository institution or trust company (other than any Affiliate of Capital One Financial Corporation)
(which may be the Owner Trustee, the Indenture Trustee or any of their respective Affiliates) organized under the laws of the United States of America or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign
bank) (a) which at all times has either (i) a long-term senior unsecured debt rating of “Aa2” or better by Moody’s, “AA-” or better by Standard & Poor’s and AA- or better by Fitch, if rated by Fitch
or such other rating that is acceptable to each Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or the Indenture Trustee or (ii) a certificate of deposit rating of “P-1” by Moody’s, “A-1+”
by Standard & Poor’s and F1 by Fitch, if rated by Fitch or (iii) such other rating that is acceptable to each Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or the Indenture Trustee, and the Note
Insurer (unless the Note Insurer is not the Controlling Party) and (b) whose deposits are insured by the Federal Deposit Insurance Corporation. 
  
 “Eligible Investments” shall mean any one or more of the following types of investments: 
  
 (a) direct obligations of, and obligations fully guaranteed
as to timely payment by, the United States of America; 
  
 (b) demand deposits, time deposits or certificates of deposit of any depository institution (including any Affiliate of the Seller, the Servicer, the Indenture Trustee or the Owner Trustee) or trust company incorporated under the laws of
the United States of America or any state thereof or the District of Columbia (or any domestic branch of a foreign bank) and subject to supervision and examination by Federal or state banking or depository institution authorities (including
depository receipts issued by any such institution or trust company as custodian with respect to any obligation referred to in clause (a) above or a portion of such obligation for the benefit of the holders of such depository receipts);
provided that at the time of the investment or contractual commitment to invest therein (which shall be deemed to be made again each time funds are reinvested following each Payment Date), the commercial paper or other short-term senior
unsecured debt obligations (other than such obligations the rating of which is based on the credit of a Person other than such depository institution or trust company) of 

  

					
	 	  	A-9	  	Sale and Servicing Agreement (20[ ]-[ ])

 
such depository institution or trust company shall have a credit rating from Standard & Poor’s of at least A-1+, from Moody’s of Prime-1
and from Fitch of F1, if rated by Fitch; 
  
 (c)
commercial paper (including commercial paper of any affiliate of the Seller, the Servicer, the Indenture Trustee or the Owner Trustee) having, at the time of the investment or contractual commitment to invest therein, a rating from
Standard & Poor’s of at least A-1+, from Moody’s of Prime-1 and from Fitch of F1, if rated by Fitch; 
  
 (d) investments in money market funds (including funds for which the Seller, the Servicer, the Indenture Trustee or Owner Trustee or any
of their respective Affiliates is investment manager or advisor) having a rating from Standard & Poor’s of AAA-m or AAAm-G, from Moody’s of Aaa and from Fitch of AAA, if rated by Fitch; 
  
 (e) bankers’ acceptances issued by any depository
institution or trust company referred to in clause (b) above; 
  
 (f) repurchase obligations with respect to any security that is a direct obligation of, or fully guaranteed by, the United States of America or any agency or instrumentality thereof the obligations of which are backed
by the full faith and credit of the United States of America, in either case entered into with a depository institution or trust company (acting as principal) referred to in clause (b) above; and 
  
 (g) any other investment that satisfies the Rating Agency
Condition and that has been approved by the Note Insurer (unless the Note Insurer is not the Controlling Party). 
  
 “Eligible Receivable” means a Receivable meeting all of the criteria set forth on Schedule I of the Sale and Servicing Agreement
as of the Closing Date or the applicable Funding Date, as the case may be. 
  
 “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended. 
  
 “ERISA Affiliate” means at any time, with respect to any Person or entity, any member of such Person’s or entity’s
“controlled group,” within the meaning of Section 4001 of ERISA or Section 414(b), (c), (m) or (o) of the Code. 
  
 “Event of Default” has the meaning set forth in Section 5.1 of the Indenture. 
  
 “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended. 
  
 “Extended Title Delivery
Date” means, with respect to any Receivable, the day that is 90 days after the First Title Delivery Date for such Receivable. 
  
 “Extension” has the meaning specified in Section 3.2 of the Sale and Servicing Agreement. 
  
 “Final Scheduled Payment Date” means, with respect to
(i) the Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class A-2 Notes, the Class A-2 Final 

  

					
	 	  	A-10	  	Sale and Servicing Agreement (20[ ]-[ ])

 
Scheduled Payment Date, (iii) the Class A-3 Notes, the Class A-3 Final Scheduled Payment Date and (iv) the Class A-4 Notes, the
Class A-4 Final Scheduled Payment Date. 
  
 “Financed
Vehicle” means an automobile or light-duty truck, together with all accessions thereto, securing an Obligor’s indebtedness under the applicable Receivable. 
  
 “First Allocation of Principal” means, with respect to any specified Payment Date, the Noteholders’
Parity Deficit Amount for such Payment Date; provided, however, that the “First Allocation of Principal” shall not exceed the Note Balance of the Class A Notes; provided, further, that the
“First Allocation of Principal” on the Final Scheduled Payment Date for any Class of Notes shall not be less than the amount that is necessary to reduce the Note Balance of that Class of Notes to zero. 
  
 “First Title Delivery Date” means, with respect to any
Receivable, the day that is 270 days after (i) the Closing Date or (ii) if such Receivable is a Subsequent Receivable, the applicable Funding Date. 
  
 “Fitch” means Fitch, Inc., or any successor that is a nationally recognized statistical rating organization. 
  
 “Funding Date” means a date occurring not more than once per
calendar week during the Funding Period and on which some or all of the Subsequent Receivables are transferred to the Issuer. 
  
 “Funding Period” means the period beginning on the Closing Date and ending upon the earliest to occur of
(i) [            ], (ii) the date upon which a Triggering Event occurs and (iii) the date on which the amount on deposit in the Pre-Funding Account has been reduced to
$10,000 or less. 
  
 “GAAP” means generally
accepted accounting principles in the USA, applied on a materially consistent basis. 
  
 “Governmental Authority” means any (a) Federal, state, municipal, foreign or other governmental entity, board, bureau, agency or instrumentality, (b) administrative or regulatory authority
(including any central bank or similar authority) or (c) court or judicial authority. 
  
 “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create, grant a lien upon and a security interest in and right of set-off against, deposit,
set over and confirm pursuant to the Indenture. A Grant of the Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the Granting party thereunder, including the immediate
and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the Collateral and all other moneys payable thereunder, to give and receive notices and other communications, to make waivers or
other agreements, to exercise all rights and options, to bring proceedings in the name of the Granting party or otherwise and generally to do and receive anything that the Granting party is or may be entitled to do or receive thereunder or with
respect thereto. Other forms of the verb “to Grant” shall have correlative meanings. 
  

					
	 	  	A-11	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Holder” means, as the context may require, the Certificateholder or a Noteholder or
both. 
  
 “Indemnified Party” has the meaning
specified in Section 6.2(d) of the Sale and Servicing Agreement. 
  
 “Indenture” means the Indenture, dated as of the Closing Date, between the Issuer and Indenture Trustee, as the same may be amended and supplemented from time to time. 
  
 “Indenture Secured Parties” shall mean the Noteholders, the
Note Insurer and the Swap Counterparty. 
  
 “Indenture
Trustee” means JPMorgan Chase Bank, N.A., a banking association organized under the laws of the United States, not in its individual capacity but as indenture trustee under the Indenture, or any successor trustee under the Indenture.

  
 “Independent” means, when used with respect
to any specified Person, that such Person (i) is in fact independent of the Issuer, any other obligor upon the Notes, the Administrator and any Affiliate of any of the foregoing Persons, (ii) does not have any direct financial interest or
any material indirect financial interest in the Issuer, any such other obligor, the Administrator or any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any such other obligor, the Administrator or any
Affiliate of any of the foregoing Persons as an officer, employee, promoter, underwriter, trustee, partner, director or Person performing similar functions. 
  
 “Independent Certificate” means a certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in,
and otherwise complying with, the applicable requirements of Section 11.1 of the Indenture, made by an independent appraiser or other expert appointed by an Issuer Order, and such opinion or certificate shall state that the signer has
read the definition of “Independent” in this Appendix A and that the signer is Independent within the meaning thereof. 
  
 “Initial Class A-1 Note Balance” means $[            ]. 
  
 “Initial Class A-2 Note Balance” means
$[            ]. 
  
 “Initial Class A-3 Note Balance” means $[            ]. 
  
 “Initial Class A-4 Note Balance” means
$[            ]. 
  
 “Initial Cut-Off Date” means [                    ]. 
  
 “Initial Interest Rate Swap Agreement” means the ISDA Master
Agreement, dated as of the Closing Date, between the Initial Swap Counterparty and the Issuer, the Schedule thereto, dated as of the Closing Date, the Credit Support Annex, if applicable, and the Confirmations thereto, dated as of the Closing Date
and entered into pursuant to such ISDA Master Agreement, as the same may be amended from time to time in accordance with the terms thereof. 
  

					
	 	  	A-12	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Initial Note Balance” means, for any Class, the Initial Class A-1 Note Balance, the
Initial Class A-2 Note Balance, the Initial Class A-3 Note Balance or the Initial Class A-4 Note Balance, as applicable, or with respect to the Notes generally, the sum of the foregoing. 
  
 “Initial Pre-Funding Account Deposit Amount” means an amount
equal to $[                ]. 
  
 “Initial Purchased Assets” has the meaning set forth in Section 2.1 of the Purchase Agreement. 
  
 “Initial Receivables” means the Receivables transferred by
the Seller to the Issuer on the Closing Date. 
  
 “Initial
Reserve Account Deposit Amount” means an amount equal to $[                ], which amount includes the Negative Carry Amount. 
  
 “Initial Swap Counterparty” means
[                    ], as the swap counterparty under the Initial Interest Rate Swap Agreement. 
  
 “Initial Transferred Assets” means (a) the Initial
Purchased Assets, (b) all of the Seller’s rights under the Purchase Agreement and (c) all proceeds of the foregoing. 
  
 “Insurance Account” has the meaning specified in Section 9.1(b) of the Sale and Servicing Agreement. 
  
 “Insurance Agreement” means the Insurance Agreement dated as
of the Closing Date between the Note Insurer, the Issuer, the Seller, the Servicer, the Originator, and the Indenture Trustee. 
  
 “Insurance Agreement Event of Default” has the meaning specified in the Insurance Agreement. 
  
 “Insurance Policy” means (i) any theft and physical
damage insurance policy maintained by the Obligor under a Receivable, providing coverage against loss or damage to or theft of the related Financed Vehicle, and (ii) any credit life or credit disability insurance maintained by an Obligor in
connection with any Receivable. 
  
 “Insured
Obligations” has the meaning specified in the Note Insurance Policy. 
  
 “Insured Payment” has the meaning specified in the Note Insurance Policy. 
  
 “Interest Period” means (i) with respect to the first Payment Date, the period from and including the Closing Date to but excluding
the first Payment Date and (ii) with respect to each subsequent Payment Date, the period from and including the prior Payment Date to but excluding such subsequent Payment Date (in each case assuming that the Payment Date for the Class A-2
Notes and the Class A-3 Notes is always on the 15th day of the calendar month in which that Payment Date
occurs). 
  

					
	 	  	A-13	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Interest Rate” means (a) with respect to the Class A-1 Notes, the
Class A-1 Interest Rate, (b) with respect to the Class A-2 Notes, the Class A-2 Interest Rate, (c) with respect to the Class A-3 Notes, the Class A-3 Interest Rate or (d) with respect to the Class A-4
Notes, the Class A-4 Interest Rate. 
  
 “Interest
Rate Swap Agreement” means the Initial Interest Rate Swap Agreement and any Replacement Interest Rate Swap Agreement. 
  
 “Issuer” means Capital One Auto Finance Trust 20[    ]-[    ], a Delaware statutory trust
established pursuant to the Trust Agreement, until a successor replaces it and, thereafter, means the successor and, for purposes of any provision contained herein, each other obligor on the Notes. 
  
 “Issuer Order” and “Issuer Request” means a
written order or request of the Issuer signed in the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture Trustee. 
  
 “Late Payment Rate” has the meaning set forth in the Insurance Agreement. 
  
 “LIBOR” means, with respect to any Interest Period, the London interbank offered rate for deposits in U.S.
dollars having a maturity of one month commencing on the related LIBOR Determination Date which appears on Telerate Page 3750 as of 11:00 a.m., London time, on such LIBOR Determination Date; provided, however, that for the first
Interest Period, LIBOR shall mean an interpolated rate for deposits based on London interbank offered rates for deposits in U.S. dollars for a period that corresponds to the actual number of days in the first Interest Period. If the rates used to
determine LIBOR do not appear on the Telerate Page 3750, the rates for that day will be determined on the basis of the rates at which deposits in U.S. dollars, having a maturity of one month and in a principal amount of not less than U.S. $1,000,000
are offered at approximately 11:00 a.m. London time, on such LIBOR Determination Date to prime banks in the London interbank market by the reference banks. The Indenture Trustee will request the principal London office of each of such reference
banks to provide a quotation of its rate. If at least two such quotations are provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five one-millionths of a percentage point rounded upward,
of all such quotations. If fewer than two such quotations are provided, the rate for that day will be the arithmetic mean to the nearest 1/100,000 of 1.00% (0.0000001), with five-millionths of a percentage point rounded upward, of the offered per
annum rates that one or more leading banks in New York City, selected by the Indenture Trustee (after consulting with the Seller), are quoting as of approximately 11:00 a.m., New York time, on such LIBOR Determination Date to leading European banks
for United States dollar deposits for that maturity; provided that if the banks selected as aforesaid are not quoting as mentioned in this sentence, LIBOR in effect for the applicable Interest Period will be LIBOR in effect for the previous
Interest Period. The reference banks are the four major banks in the London interbank market selected by the Indenture Trustee (after consultation with the Seller). 
  
 “LIBOR Determination Date” means the second London Business Day prior to the Closing Date with respect to
the first Payment Date and, as to each subsequent Payment Date, the second London Business Day prior to the immediately preceding Payment Date. 
  

					
	 	  	A-14	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Lien” means, for any asset or property of a Person, a lien, security interest,
mortgage, pledge or encumbrance in, of or on such asset or property in favor of any other Person, except any Permitted Lien. 
  
 “Limited Guaranty” means the Limited Guaranty, dated as of the Closing Date, issued by Capital One Financial Corporation for the benefit
of the Issuer, the Indenture Trustee and the Note Insurer. 
  
 “Liquidation Proceeds” means, with respect to any Receivable, (a) insurance proceeds received by the Servicer with respect to the Insurance Policies, (b) amounts received by the Servicer in connection with such
Receivable pursuant to the exercise of rights under that Receivable and (c) the monies collected by the Servicer (from whatever source, including proceeds of a sale of a Financed Vehicle, a deficiency balance recovered from the Obligor after
the charge-off of such Receivable or as a result of any recourse against the related Dealer, if any) on such Receivable, in the case of each of the foregoing clauses (a) through (c), net of any expenses (including, without limitation, any
auction, painting, repair or refurbishment expenses in respect of the related Financed Vehicle) incurred by the Servicer in connection therewith and any payments required by law to be remitted to the Obligor. 
  
 “London Business Day” means any day other than a Saturday,
Sunday or day on which banking institutions in London, England are authorized or obligated by law or government decree to be closed. 
  
 “Monthly Remittance Condition” has the meaning set forth in Section 4.2 of the Sale and Servicing Agreement. 
  
 “Moody’s” means Moody’s Investors Service, Inc.,
or any successor that is a nationally recognized statistical rating organization. 
  
 “Negative Carry Amount” means $[                ]. 
  
 “Net Swap Payment” means for the Interest Rate Swap Agreement, the net amounts owed by the Issuer to the
Swap Counterparty, if any, on any Swap Payment Date, excluding Swap Termination Payments. 
  
 “Net Swap Receipts” means for the Interest Rate Swap Agreement, the net amounts owed by the Swap Counterparty to the Issuer, if any, on any Swap Payment Date, including, without limitation, any Swap
Termination Payments. 
  
 “Note” means a
Class A-1 Note, Class A-2 Note, Class A-3 Note or Class A-4 Note, in each case substantially in the forms of Exhibit A to the Indenture. 
  
 “Note Balance” means, with respect to any date of determination, for any Class, the Class A-1 Note
Balance, the Class A-2 Note Balance, the Class A-3 Note Balance or the Class A-4 Note Balance, as applicable, or with respect to the Notes generally, the sum of all of the foregoing. 
  

					
	 	  	A-15	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Note Depository Agreement” means the agreement, dated as of the Closing Date, between
the Issuer and DTC, as the initial Clearing Agency relating to the Notes, as the same may be amended or supplemented from time to time. 
  
 “Note Factor” on a Payment Date means, with respect to each Class of Notes, a six-digit decimal figure equal to the Note Balance of such
Class of Notes as of the end of the related Collection Period divided by the Note Balance of such Class of Notes as of the Closing Date. The Note Factor will be 1.000000 as of the Closing Date; thereafter, the Note Factor will decline to reflect
reductions in the Note Balance of such Class of Notes. 
  
 “Note Insurance Policy” means the Note Guaranty Insurance Policy dated the Closing Date issued by the Note Insurer with respect to the Notes. 
  
 “Note Insurer” means
[                ], a
[                            ], and its successors and assigns. 
  
 “Note Insurer Default” means the occurrence and continuance
of any of the following events: (a) the Note Insurer fails to make a payment required under the Note Insurance Policy in accordance with the terms of the Note Insurance Policy or (b) a Note Insurer Insolvency Event. 
  
 “Note Insurer Insolvency Event” means (a) the entry of
a decree or order of a court or agency having jurisdiction in respect of the Note Insurer in an involuntary case under any present or future federal or state bankruptcy, insolvency or similar law or appointing a conservator or receiver or liquidator
or rehabilitator or other similar official of the Note Insurer or of any substantial part of its property, or the entering of an order for the winding up or liquidation of the affairs of the Note Insurer which is final and nonappealable;
(b) the Note Insurer shall consent to the appointment of a conservator or receiver or liquidator or other similar official in any insolvency, readjustment of debt, marshaling of assets and liabilities, rehabilitation or similar proceedings of
or relating to the Note Insurer or of or relating to all or substantially all of its property; or (c) the Note Insurer shall admit in writing its inability to pay its debts generally as they become due, file a petition to take advantage of or
otherwise voluntarily commence a case or proceeding under any applicable bankruptcy, insolvency, reorganization or other similar statute, make an assignment for the benefit of its creditors, or voluntarily suspend payments of its obligations.

  
 “Note Owner” means, with respect to a
Book-Entry Note, the Person who is the beneficial owner of such Book-Entry Note, as reflected on the books of the Clearing Agency or a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an
indirect participant, in each case in accordance with the rules of such Clearing Agency). 
  
 “Note Preference Claim” has the meaning specified in Section 9.1(d) of the Sale and Servicing Agreement. 
  
 “Note Register” and “Note Registrar” have the respective meanings set forth in
Section 2.4 of the Indenture. 
  
 “Noteholder” means, as of any date, the Person in whose name a Note is registered on the Note Register on such date. 
  

					
	 	  	A-16	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Noteholders’ Interest Carryover Shortfall” shall mean, with respect to any Payment
Date, the excess of the sum of the Noteholders’ Monthly Accrued Interest for the preceding Payment Date and any outstanding Noteholders’ Interest Carryover Shortfall on such preceding Payment Date, over the amount in respect of interest
that is actually paid to Noteholders on such preceding Payment Date, plus interest on the amount of interest due but not paid to Noteholders on the preceding Payment Date, to the extent permitted by law, at the respective Interest Rates borne by
such Notes for the related Interest Period. 
  
 “Noteholders’ Monthly Accrued Interest” shall mean, with respect to any Payment Date, the aggregate interest accrued for the related Interest Period on the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes at the respective Interest Rate for such Class on the Note Balance of each such Class on the immediately preceding Payment Date or the Closing Date, as the case may be, after giving effect to all
payments of principal to the Noteholders of such Class on or prior to such preceding Payment Date. With respect to the first Payment Date on [                ], the
aggregate interest accrued on (i) the Class A-1 Notes is $[            ], (ii) the Class A-2 Notes is
$[            ], (iii) the Class A-3 Notes is $[            ] and (iv) the Class A-4 Notes is
$[                ]. 
  
 “Noteholders’ Parity Deficit Amount” means, with respect to any Payment Date, an amount equal to the excess, if any, of (a) the
Note Balance as of such Payment Date (before giving effect to any principal payments made on the Notes on such Payment Date) over (b) the sum of (i) the Pool Balance as of the end of the related Collection Period and
(ii) amounts, if any, on deposit in the Pre-Funding Account as of the end of the related Collection Period. 
  
 “Notes” shall mean, collectively, the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes. 
  
 “Notice” has the meaning set forth in
Section 9.1(a) of the Sale and Servicing Agreement. 
  
 “Notice of Funding Date” means a notice in the form of Exhibit A to the Sale and Servicing Agreement. 
  
 “Obligor” means, for any Receivable, each Person obligated to pay such Receivable. 
  
 “Officer’s Certificate” means (i) with respect to
the Issuer, a certificate signed by any Authorized Officer of the Issuer and (ii) with respect to the Seller or the Servicer, a certificate signed by the chairman of the board, the president, any executive vice president, any vice president,
the treasurer, any assistant treasurer or the controller of the Seller or the Servicer, as applicable. 
  
 “Opinion of Counsel” means one or more written opinions of counsel who may, except as otherwise expressly provided in the Indenture or
any other applicable Transaction Document, be employees of or counsel to the Issuer, the Servicer, the Seller or the Administrator, and which opinion or opinions comply with any applicable requirements of the Transaction Documents and are in form
and substance reasonably satisfactory to the recipient(s). Opinions of Counsel need address matters of law only and may be based upon stated assumptions as to relevant matters of fact. 
  

					
	 	  	A-17	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Optional Purchase” has the meaning set forth in Section 8.1 of the Sale and
Servicing Agreement. 
  
 “Optional Purchase
Price” has the meaning set forth in Section 8.1 of the Sale and Servicing Agreement. 
  
 “Originator” means COAF or a Referral Originator, as applicable. 
  
 “Other Assets” means any assets (or interests therein) (other than the Trust Estate) conveyed or purported
to be conveyed by the Seller to another Person or Persons other than the Issuer, whether by way of a sale, capital contribution or by virtue of the granting of a lien. 
  
 “Outstanding” means, as of any date, all Notes (or all Notes of an applicable Class) theretofore
authenticated and delivered under the Indenture except: 
  
 (i)
Notes (or Notes of an applicable Class) theretofore cancelled by the Note Registrar or delivered to the Note Registrar for cancellation pursuant to Section 2.8 of the Indenture; 
  
 (ii) Notes (or Notes of an applicable Class) or portions thereof the payment
for which money in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying Agent in trust for the related Noteholders (provided, however, that if such Notes are to be redeemed, notice of such redemption has been
duly given pursuant to the Indenture or provision therefor, satisfactory to the Indenture Trustee, has been made); and 
  
 (iii) Notes (or Notes of an applicable Class) in exchange for or in lieu of other Notes (or Notes of such Class) that have been authenticated and
delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is presented that any such Notes are held by a bona fide purchaser; 
  
 provided that in determining whether Noteholders holding the requisite Note Balance have given any request, demand, authorization, direction, notice, consent, vote
or waiver hereunder or under any Transaction Document, Notes owned by the Issuer, the Seller, the Servicer, the Administrator or any of their respective Affiliates shall be disregarded and deemed not to be Outstanding, except that, in determining
whether the Indenture Trustee shall be protected in relying upon any such request, demand, authorization, direction, notice, consent, vote or waiver, only Notes that a Responsible Officer of the Indenture Trustee knows to be so owned shall be so
disregarded. Notes so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee thereof establishes to the satisfaction of the Indenture Trustee such pledgee’s right so to act with respect to such Notes and that
such pledgee is not the Issuer, the Seller, the Servicer, the Administrator or any of their respective Affiliates. 
  
 “Owner Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in its individual capacity but solely as owner
trustee under the Trust Agreement, and any successor Owner Trustee thereunder. 
  
 “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee set forth in Section 6.11 of the Indenture and is authorized
by 

  

					
	 	  	A-18	  	Sale and Servicing Agreement (20[ ]-[ ])

 
the Issuer to make the payments to and distributions from the Principal Distribution Account, including the payment of principal of or interest on the Notes
on behalf of the Issuer. 
  
 “Payment Date” means
the 15th day of each calendar month beginning [                ]; provided, however, whenever a Payment Date would otherwise be a day that is not a Business Day,
the Payment Date shall be the next Business Day. As used herein, the “related” Payment Date with respect to a Collection Period shall be deemed to be the Payment Date which immediately follows such Collection Period. 
  
 “Payment Default” has the meaning set forth in
Section 5.4(a) of the Indenture. 
  
 “Permitted Liens” means (a) any liens created by the Transaction Documents; (b) any liens for taxes not due and payable or the amount of which is being contested in good faith by appropriate proceedings; and
(c) any liens of mechanics, suppliers, vendors, materialmen, laborers, employees, repairmen and other like liens securing obligations which are not due and payable or the amount or validity of which is being contested in good faith by
appropriate proceedings. 
  
 “Person” means any
individual, corporation, limited liability company, estate, partnership, joint venture, association, joint stock company, trust (including any beneficiary thereof), unincorporated organization or government or any agency or political subdivision
thereof. 
  
 “Physical Property” has the meaning
specified in the definition of “Delivery” above. 
  
 “Pool Balance” means, at any time, the aggregate Principal Balance of the Receivables at such time. 
  
 “Pool Factor” on a Payment Date means a six-digit decimal figure equal to the sum of the Pool Balance and the funds in the Pre-Funding
Account (excluding investment income) as of the end of the preceding Collection Period divided by the sum of the aggregate Principal Balance of the Receivables as of the Initial Cut-Off Date plus the Initial Pre-Funding Account Deposit Amount. The
Pool Factor will be 1.000000 as of the Cut-Off Date; thereafter, the Pool Factor will decline to reflect reductions in the Pool Balance. 
  
 “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that
evidenced by such particular Note; provided, however, for the purpose of this definition, any Note authenticated and delivered under Section 2.5 of the Indenture in lieu of a mutilated, destroyed, lost or stolen Note shall be
deemed to evidence the same debt as the mutilated, destroyed, lost or stolen Note. 
  
 “Preference Amount” has the meaning specified in the Note Insurance Policy. 
  
 “Pre-Funding Account” means the account by that name established and maintained pursuant to Section 4.1 of the Sale and
Servicing Agreement. 
  
 “Premium” means the
insurance premium payable to the Note Insurer pursuant to the Insurance Agreement. 
  

					
	 	  	A-19	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Principal Balance” means, as of any time, for any Receivable, the principal balance of
such Receivable under the terms of the Receivable determined in accordance with the Customary Servicing Practices. The Principal Balance of any Receivable that becomes a Defaulted Receivable will be deemed to be zero as of the date it becomes a
Defaulted Receivable. 
  
 “Principal Distribution
Account” means the account by that name established and maintained pursuant to Section 4.1 of the Sale and Servicing Agreement. 
  
 “Proceeding” means any suit in equity, action at law or other judicial or administrative proceeding. 
  
 “Purchase Agreement” means the Purchase Agreement, dated as
of the Closing Date, between COAF and the Seller, as amended, modified or supplemented from time to time. 
  
 “Purchase Price” has the meaning specified in Section 2.4 of the Purchase Agreement. 
  
 “Purchased Assets” has the meaning set forth in
Section 2.2 of the Purchase Agreement. 
  
 “Rating Agency” means Moody’s, Standard & Poor’s or Fitch. 
  
 “Rating Agency Condition” means, with respect to any event or circumstance and each Rating Agency, either (a) written confirmation
by such Rating Agency that the occurrence of such event or circumstance will not itself cause such Rating Agency to downgrade or withdraw its rating assigned to any of the Notes, without giving effect to the Note Insurance Policy on the ratings
assigned to any of the Notes or (b) that such Rating Agency shall have been given notice of such event at least ten days prior to the occurrence of such event (or, if ten days’ advance notice is impracticable, as much advance notice as is
practicable) and such Rating Agency shall not have issued any written notice that the occurrence of such event will itself cause such Rating Agency to downgrade or withdraw its rating assigned to any of the Notes, without giving effect to the Note
Insurance Policy on the ratings assigned to any of the Notes. 
  
 “Receivable” means any Contract with respect to a new or used automobile or light-duty truck which shall appear on the Schedule of Receivables and all Related Security in connection therewith which has not been released
from the lien of the Indenture. 
  
 “Receivable
Files” has the meaning set forth in Section 2.4(a) of the Sale and Servicing Agreement. 
  
 “Receivables Purchase Price” means, with respect to any Subsequent Receivable,
[            ]% of the aggregate Principal Balance of such Subsequent Receivable as of the related Subsequent Cut-Off Date (provided, however, that the Receivables Purchase Price on the
final Funding Date may be adjusted as agreed to by the Seller and the Issuer to be less than [            ]% for the purpose of using all funds remaining on deposit in the Pre-Funding
Account to purchase Subsequent Receivables). 
  
 “Record
Date” means, unless otherwise specified in any Transaction Document, with respect to any Payment Date or Redemption Date, (i) for any Definitive Notes and for the Certificates, if any, the close of business on the last Business Day of
the calendar month 

  

					
	 	  	A-20	  	Sale and Servicing Agreement (20[ ]-[ ])

 
immediately preceding the calendar month in which such Payment Date or Redemption Date occurs and (ii) for any Book-Entry Notes, the close of business
on the Business Day immediately preceding such Payment Date or Redemption Date. 
  
 “Records” means, for any Receivable, all contracts, books, records and other documents or information (including computer programs, tapes, disks, software and related property and rights, to the
extent legally transferable) relating to such Receivable or the related Obligor. 
  
 “Redemption Date” means in the case of a redemption of the Notes pursuant to Section 10.1 of the Indenture, the Payment Date specified by the Administrator or the Issuer pursuant to
Section 10.1 of the Indenture. 
  
 “Redemption
Price” means an amount equal to the sum of (a) unpaid Note Balance redeemed, plus (b) accrued and unpaid interest thereon at the applicable Interest Rate for the Notes being so redeemed, up to but excluding the Redemption Date,
plus (c) all Premiums and Reimbursement Obligations due to the Note Insurer as of the Redemption Date, plus (d) all amounts owing to the Swap Counterparty as of the Redemption Date. 
  
 “Referral Originator” means a bank, finance company, car
rental company or factory authorized dealer or one of its Affiliates that has entered into an agreement with COAF regarding the transfer of Receivables by such entity to COAF. 
  
 “Referral Receivable” means a Receivable originated by a Referral Originator which has been validly
assigned to COAF, but for which COAF is not noted as the lienholder on the related Certificate of Title. 
  
 “Registered Holder” means the Person in whose name a Note is registered on the Note Register on the related Record Date. 
  
 “Regulation AB” means Subpart 229.1100 – Asset Backed
Securities (Regulation AB), 17 C.F.R. §§229.1100-229.1123, as such may be amended from time to time and subject to such clarification and interpretation as have been provided by the Commission in the adopting release (Asset-Backed
Securities, Securities Act Release No. 33-8518. 70 Fed. Reg. 1,506, 1,531 (January 7, 2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from time to time. 
  
 “Reimbursement Obligation” means the sum of (a) the
aggregate unreimbursed amount of any payments made by the Note Insurer under the Note Insurance Policy and the Swap Policy (excluding reimbursements for Swap Termination Payments made under the Swap Policy), together with interest on such amount
from the date of payment by the Note Insurer until paid in full at a rate of interest equal to the Late Payment Rate (as defined in the Insurance Agreement), (b) all costs and expenses of the Note Insurer in connection with any action,
proceeding or investigation affecting the Issuer, the Trust Estate or the rights or obligations of the Note Insurer hereunder or under the Note Insurance Policy and the Swap Policy (excluding reimbursements for Swap Termination Payments made under
the Swap Policy) or under the other Transaction Documents, including (without limitation) any judgment or settlement entered into affecting the Note Insurer or the Note Insurer’s interests, together with interest thereon at a rate equal to the

  

					
	 	  	A-21	  	Sale and Servicing Agreement (20[ ]-[ ])

 
Late Payment Rate and (c) any other amounts owed to the Note Insurer under the Insurance Agreement, together with interest thereon at a rate equal to
the Late Payment Rate. 
  
 “Related Security”
means, for any Receivable, (i) the security interest in the related Financed Vehicle, (ii) any proceeds from claims on any Insurance Policy and refunds in connection with extended service agreements relating to such Receivable (if such
Receivable became a Defaulted Receivable after the applicable Cut-Off Date), (iii) any other property securing the Receivables and (iv) all proceeds of the foregoing. 
  
 “Replacement Interest Rate Swap Agreement” means, with respect to any Swap Counterparty, any replacement
Interest Rate Swap Agreement entered into pursuant to the conditions set forth in the Interest Rate Swap Agreement. 
  
 “Replacement Swap Counterparty” means, with respect to any Swap Counterparty, any replacement Swap Counterparty under a Replacement
Interest Rate Swap Agreement that satisfies the conditions set forth in the Interest Rate Swap Agreement. 
  
 “Repurchase Price” means, with respect to any Repurchased Receivable, a price equal to the outstanding Principal Balance (calculated
without giving effect to the last sentence of the definition of “Principal Balance”) of such Receivable plus any unpaid accrued interest related to such Receivable accrued to and including the end of the Collection Period preceding
the date that such Repurchased Receivable was purchased by COAF, the Servicer or the Seller, as applicable. 
  
 “Repurchased Receivable” means a Receivable purchased by COAF pursuant to Section 3.3 of the Purchase Agreement, by the
Servicer pursuant to Section 3.6 of the Sale and Servicing Agreement or by the Seller pursuant to Section 2.3 or Section 2.6 of the Sale and Servicing Agreement. 
  
 “Required Title Delivery Date” means, with respect to any
Receivable, the Extended Title Delivery Date unless the failure to repurchase such Receivable on the First Title Delivery Date would materially and adversely affect the interests of the Issuer, the Noteholders or the Note Insurer (as determined by
the Note Insurer in its reasonable discretion, unless the Note Insurer is not the Controlling Party) in such Receivable, in which case the Required Title Delivery Date for such Receivable shall be the First Title Delivery Date for such Receivable;
provided, however, that the failure to repurchase such Receivable on the First Title Delivery Date shall be deemed not to have a material adverse effect on the Issuer, the Noteholders or the Note Insurer in such Receivable and the
Required Title Delivery Date for such Receivable shall be the Extended Title Delivery Date if such Receivable is not a Defaulted Receivable as of the First Title Delivery Date for such Receivable. 
  
 “Reserve Account” means the account designated as such,
established and maintained pursuant to Section 4.1 of the Sale and Servicing Agreement. 
  
 “Reserve Account Draw Amount” means, for any Payment Date, the amount withdrawn from the Reserve Account, equal to the lesser of
(a) the Available Funds Shortfall Amount, if any, for such Payment Date or (b) the amount on deposit in the Reserve Account on such Payment Date. In addition, on any Payment Date occurring after the end of the Funding Period, if the sum of
the amounts in the Reserve Account and the remaining Available Funds after the 

  

					
	 	  	A-22	  	Sale and Servicing Agreement (20[ ]-[ ])

 
payments under clauses first through sixth of Section 4.4(a) of the Sale and Servicing Agreement would be sufficient to pay in full
the aggregate unpaid Note Balance of all of the outstanding Classes of Notes, then the Reserve Account Draw Amount will, if so specified by the Servicer in the Servicer’s Certificate, include such additional amount as may be necessary to pay
all Outstanding Notes in full. 
  
 “Reserve Account Excess
Amount” means, with respect to any Payment Date, means an amount equal to the excess, if any, of (a) the amount of cash or other immediately available funds in the Reserve Account on that Payment Date, after giving effect to all
deposits to and withdrawals from the Reserve Account relating to that Payment Date, over (b) the Specified Reserve Account Balance with respect to that Payment Date. 
  
 “Reserve Account Increase Condition” has the meaning specified in the Insurance Agreement. 
  
 “Residual Interest” means the beneficial interest in the
Issuer. The Residual Interest shall not be represented by a Certificate except upon the request of the Residual Interestholder pursuant to the terms of the Trust Agreement. 
  
 “Residual Interestholder” means the owner of the Residual Interest. The Seller shall be the initial
Residual Interestholder. 
  
 “Responsible
Officer” means, (a) with respect to the Indenture Trustee, any officer within the corporate trust department of the Indenture Trustee, including any vice president, assistant vice president, assistant secretary, assistant treasurer,
trust officer or any other officer of the Indenture Trustee who customarily performs functions similar to those performed by the persons who at the time shall be such officers, respectively, or to whom any corporate trust matter is referred because
of such person’s knowledge of and familiarity with the particular subject and who shall have direct responsibility for the administration of the Indenture, (b) with respect to the Owner Trustee, any officer within the Corporate Trust
Office of the Owner Trustee and having direct responsibility for the administration of the Issuer, including any Vice President, Assistant Vice President, Assistant Treasurer, Assistant Secretary, or any other officer customarily performing
functions similar to those performed by any of the above designated officers and also, with respect to a particular matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the
particular subject and (c) with respect to the Servicer or Seller, any officer of such Person having direct responsibility for the transactions contemplated by the Transaction Documents, including the President, Treasurer or Secretary or any
Vice President, Assistant Vice President, Assistant Treasurer, Assistant Secretary, or any other officer customarily performing functions similar to those performed by any of the above designated officers and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such officer’s knowledge of and familiarity with the particular subject. 
  
 “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of the Closing Date, between the Seller, the Issuer, the
Servicer and the Indenture Trustee, as the same may be amended, modified or supplemented from time to time. 
  

					
	 	  	A-23	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended, modified or
supplemented from time to time, and any successor law thereto. 
  
 “Schedule of Receivables” means, as the context may require, (i) the schedule of Initial Receivables or Subsequent Receivables, as the case may be, transferred to the Issuer on the Closing Date or a Funding Date,
respectively, or (ii) collectively, the schedule of all Receivables assigned to the Issuer by the Seller as of the date of determination, with such additions and deletions as properly made pursuant to the Transaction Documents. 
  
 “Second Allocation of Principal” means, for any Payment
Date, an amount (not less than zero) equal to the excess, if any, of (x) the Note Balance on such Payment Date (after the application of the First Allocation of Principal) over (y) the sum of (i) the Pool Balance as of the last day of
the related Collection Period minus the Target Overcollateralization Amount for such Payment Date and (ii) 100% of amounts, if any, on deposit in the Pre-Funding Account as of the last day of the related Collection Period; provided,
however, that if a Triggering Event has occurred and is continuing as of such Payment Date, the “Second Allocation of Principal” means, for such Payment Date, an amount equal to the Note Balance (after the application of the First
Allocation of Principal). 
  
 “Securities Act”
shall mean the Securities Act of 1933, as amended. 
  
 “Seller” means Capital One Auto Receivables, LLC, a Delaware limited liability company. 
  
 “Servicer” means COAF, initially, and any replacement Servicer appointed pursuant to the Sale and Servicing Agreement. 
  
 “Servicer’s Certificate” means the certificate
delivered pursuant to Section 3.8 of the Sale and Servicing Agreement. 
  
 “Servicer Termination Event” means any one or more of the following that shall have occurred and be continuing: 
  

(a) any failure by the Servicer to deliver or cause to be delivered any required payment to the Indenture Trustee for distribution to the Noteholders,
which failure continues unremedied for five Business Days after discovery thereof by a Responsible Officer of the Servicer or receipt by the Servicer of written notice thereof from the Indenture Trustee or the Note Insurer; 
  
 (b) any failure by the Servicer to duly observe or perform in any material
respect any other of its material covenants or agreements in the Transaction Documents, which failure materially and adversely affects the rights of the Issuer, the Note Insurer or the Noteholders, and which continues unremedied for 60 days (or for
such longer period not in excess of 90 days as may be reasonably necessary to remedy such failure; provided that (i) such failure is capable of remedy within 90 days or less and (ii) the Controlling Party consents to such longer
cure period) after discovery thereof by a Responsible Officer of the Servicer or receipt by the Servicer of written notice thereof from the Indenture Trustee or the Note Insurer; provided, however, that no Servicer Termination Event
will result from the breach by the Servicer of any covenant for 

  

					
	 	  	A-24	  	Sale and Servicing Agreement (20[ ]-[ ])

 
which the repurchase of the affected Receivables is specified as the sole remedy pursuant to Section 2.6 or Section 3.6 of the Sale
and Servicing Agreement so long as such required repurchase takes place when and as required in the Sale and Servicing Agreement (after giving effect to any applicable grace periods); 
  
 (c) any representation or warranty of the Servicer made in any Transaction Document to which the Servicer is a party or by
which it is bound or any certificate delivered pursuant to the Sale and Servicing Agreement proves to have been incorrect when made, which failure materially and adversely affects the rights of the Issuer, the Note Insurer or the Noteholders, and
which failure continues unremedied for 60 days (or for such longer period not in excess of 90 days as may be reasonably necessary to remedy such failure; provided that (i) such failure is capable of remedy within 90 days or less and
(ii) the Controlling Party consents to such longer cure period) after discovery thereof by a Responsible Officer of the Servicer or receipt by the Servicer of written notice thereof from the Indenture Trustee or the Note Insurer (it being
understood that any repurchase of a Receivable by COAF pursuant to Section 3.3 of the Purchase Agreement, by the Seller pursuant to Section 2.3 of the Sale and Servicing Agreement or by the Servicer pursuant to
Section 3.6 of the Sale and Servicing Agreement shall be deemed to remedy any incorrect representation or warranty with respect to such Receivable); 
  

(d) the Servicer suffers a Bankruptcy Event; or 
  
 (e) a Triggering Event has occurred and is continuing. 
  
 “Servicing Criteria” shall mean the “servicing criteria” set forth in Item 1122(d) of Regulation AB, as such may be
amended from time to time. 
  
 “Servicing Fee”
means, for any Payment Date, the product of (A) one-twelfth (or, in the case of the first Payment Date, a fraction, the numerator of which is the number of days from but not including the Initial Cut-Off Date to and including the last day of
the first Collection Period and the denominator of which is 360), (B) the Servicing Fee Rate and (C) the Pool Balance as of the first day of the related Collection Period (or, in the case of the first Payment Date, as of the Initial
Cut-Off Date). The Servicing Fee for the first Payment Date on [                    ] shall be
$[            ]. 
  
 “Servicing Fee Rate” means [            ]% per annum. 
  
 “Simple Interest Method” means the method of calculating interest due on a motor vehicle receivable on a
daily basis based on the actual outstanding principal balance of the receivable on that date. 
  
 “Simple Interest Receivable” means any motor vehicle receivable pursuant to which the payments due from the Obligors during any month are allocated between interest, principal and other charges based
on the actual date on which a payment is received and for which interest is calculated using the Simple Interest Method. 
  
 “Specified Reserve Account Balance” means, for any Payment Date, the sum of (x) [2]% of the Pool Balance as of the Initial Cut-Off
Date, (y) [2]% of the aggregate principal balance, calculated as of their respective Subsequent Cut-Off dates, of all Subsequent Receivables 

  

					
	 	  	A-25	  	Sale and Servicing Agreement (20[ ]-[ ])

 
transferred to the Issuer on or prior to that Payment Date and (z) during the Funding Period, the Negative Carry Amount; provided,
however, that if a Reserve Account Increase Condition has occurred and is continuing the “Specified Reserve Account Balance” for that Payment Date will be equal to the greater of (x) [3]% of the sum of Pool Balance as of
the Initial Cut-off Date and the aggregate principal balance of all Subsequent Receivables, calculated as of their respective Subsequent Cut-off Dates, transferred to the Issuer on or prior to that Payment Date and (y) [6]% of the Pool Balance
as of the last day of the related Collection Period; provided, further, that in no event will the “Specified Reserve Account Balance” for a Payment Date exceed the aggregate outstanding Principal Balance of the Notes
after giving effect to all payments of principal on that Payment Date. 
  
 “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., or any successor that is a nationally recognized statistical rating organization.

  
 “Statutory Trust Statute” means Chapter 38 of
Title 12 of the Delaware Code, 12 Del. Code § 3801 et seq. 
  
 “Subsequent Cut-Off Date” means, with respect to any Subsequent Receivable, the date specified in the Notice of Funding Date related to such Subsequent Receivable. 
  
 “Subsequent Purchased Assets” has the meaning set forth in
Section 2.2 of the Purchase Agreement. 
  
 “Subsequent Receivable” means a Receivable transferred to the Issuer on a Funding Date. 
  
 “Subsequent Reserve Account Deposit Amount” means, with respect to a Funding Date, an amount equal to [2]% of the aggregate Principal
Balance of the Subsequent Receivables transferred on such Funding Date. 
  
 “Subsequent Transferred Assets” means (a) the Subsequent Purchased Assets, (b) all of the Seller’s rights under the Purchase Agreement and (c) all proceeds of the foregoing. 
  
 “Sub-Servicer” means any Affiliate of the Servicer or any
sub-contractor to whom any or all duties of the Servicer (including, without limitation, its duties as custodian) under the Transaction Documents have been delegated in accordance with Section 6.5 of the Sale and Servicing Agreement.

  
 “Supplemental Servicing Fees” means any and
all (i) late fees, (ii) extension fees, (iii) non-sufficient funds charges and (iv) any and all other administrative fees or similar charges allowed by applicable law with respect to any Receivable. 
  
 “Swap Collateral Account” means a single, segregated trust
account in the name of the Indenture Trustee, which shall be designated as the “Swap Collateral Account” which shall be held in trust for the benefit of the Noteholders and the Note Insurer established pursuant to
Section 4.8(e) of the Sale and Servicing Agreement. 
  

					
	 	  	A-26	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Swap Counterparty” means the Initial Swap Counterparty and any Replacement Swap
Counterparty. 
  
 “Swap Payment Date” means the
date on which Net Swap Receipts or Net Swap Payments, as applicable, are made pursuant to the Interest Rate Swap Agreement. 
  
 “Swap Policy” means the Interest Rate Swap Insurance Policy dated as of the Closing Date issued by the Note Insurer for the benefit of
the Initial Swap Counterparty with respect to the Initial Interest Rate Swap Agreement. 
  
 “Swap Replacement Proceeds” means any amounts received from a Replacement Swap Counterparty in consideration for entering into a Replacement Interest Rate Swap Agreement for a terminated Interest Rate
Swap Agreement. 
  
 “Swap Termination Payment”
means payment due to the Swap Counterparty by the Issuer or to the Issuer by the Swap Counterparty, including interest that may accrue thereon, under the Interest Rate Swap Agreement due to a termination of the Interest Rate Swap Agreement due to an
“event of default” or “termination event” under the Interest Rate Swap Agreement. 
  
 “Swap Termination Payment Account” means a single segregated trust account held in the United States in the name of the Indenture Trustee
which shall be held in trust for the benefit of the Noteholders and the Note Insurer pursuant to Section 4.8(b) of the Sale and Servicing Agreement. 
  

“Target Cumulative Net Charge-Off Ratio” has the meaning specified in the Insurance Agreement. 
  
 “Target Overcollateralization Amount” means, for any Payment
Date, the product of (x) the Pool Balance as of the last day of the related Collection Period times (y) the Target Overcollateralization Level for such Payment Date. 
  
 “Target Overcollateralization Level” means, for any Payment Date,
[            ]%, provided that if the Cumulative Net Charge-Off Ratio for the Payment Date occurring in [            ],
[            ] or [            ] is equal to or less than the Target Cumulative Net Charge-Off Ratio for the
[            ], [            ] or [            ] Payment Date,
respectively, the “Target Overcollateralization Level” will be [            ]% for the [            ],
[            ] or [            ] Payment Date, as applicable, and all Payment Dates thereafter. 
  
 “TIA” or “Trust Indenture Act” means the
Trust Indenture Act of 1939, as amended and as in force on the date hereof, unless otherwise specifically provided. 
  
 “Title Delivery Failure Percentage” means, as of any date of determination, a fraction (expressed as a percentage), the numerator of
which is the aggregate Principal Balance of all Receivables with respect to which, as of such date, the related original Certificates of Title have not been received by the Custodian or its agent for inclusion in the related Receivable File, and the
denominator of which is the Pool Balance as of such date. 
  

					
	 	  	A-27	  	Sale and Servicing Agreement (20[ ]-[ ])

 “Transaction Documents” means the Indenture, the Notes, the Note Depository Agreement,
the Sale and Servicing Agreement, the Purchase Agreement, the Administration Agreement, the Trust Agreement, the Insurance Agreement, the Interest Rate Swap Agreement and the Limited Guaranty, as the same may be amended or modified from time to
time. 
  
 “Transferred Assets” means (a) the
Initial Transferred Assets and (b) the Subsequent Transferred Assets. 
  
 “Triggering Event” means the occurrence of an Event of Default or, so long as the Note Insurer is the Controlling Party, the occurrence of an Insurance Agreement Event of Default; provided that
the occurrence of an Insurance Agreement Event of Default shall not form the basis of a Triggering Event unless the Note Insurer, upon prior written notice to each Rating Agency, has delivered to the Issuer and the Indenture Trustee, written notice
specifying that such Insurance Agreement Event of Default constitutes a Triggering Event. 
  
 “Trust Accounts” means the Collection Account, the Pre-Funding Account, the Reserve Account, the Principal Distribution Account, the Swap Collateral Account and the Swap Termination Payment Account.

  
 “Trust Account Property” means the Trust
Accounts, all amounts and investments held from time to time in any Trust Account (whether in the form of deposit accounts, Physical Property, book-entry securities, uncertificated securities or otherwise), and all proceeds of the foregoing.

  
 “Trust Agreement” means the Trust Agreement,
dated as of [            ], between the Seller and the Owner Trustee, as amended and restated by the Amended and Restated Trust Agreement, dated as of the Closing Date, between the Seller
and the Owner Trustee, as the same may be amended and supplemented from time to time. 
  
 “Trust Estate” means all money, accounts, chattel paper, general intangibles, goods, instruments, investment property and other property of the Issuer, including without limitation (i) the
Receivables acquired by the Issuer under the Sale and Servicing Agreement, (ii) the Receivable Files, (iii) the security interests in the Financed Vehicles and all certificates of title to the Financed Vehicles, (iv) any proceeds from
claims on any Insurance Policy and refunds in connection with extended service agreements relating to Receivables which became Defaulted Receivables after the applicable Cut-Off Date, (v) any other property securing the Receivables,
(vi) the rights of the Issuer to the funds on deposit from time to time in the Trust Accounts and any other account or accounts established pursuant to the Indenture or Sale and Servicing Agreement and all cash, investment property and other
property from time to time credited thereto and all proceeds thereof (including investment earnings, net of losses and investment expenses, on amounts on deposit therein), (vii) the rights of the Seller, as buyer, under the Purchase Agreement,
(viii) rights under the Sale and Servicing Agreement, the Limited Guaranty and the Interest Rate Swap Agreement and (ix) all proceeds of the foregoing. 
  
 “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect in the
relevant jurisdiction, as amended from time to time. 
  

					
	 	  	A-28	  	Sale and Servicing Agreement (20[ ]-[ ])

 “United States” or “USA” means the United States of America (including
all states, the District of Columbia and political subdivisions thereof). 
  
 The foregoing definitions shall be equally applicable to both the singular and plural forms of the defined terms. Unless otherwise inconsistent with the terms of this Agreement, all accounting terms used herein shall
be interpreted, and all accounting determinations hereunder shall be made, in accordance with GAAP. Amounts to be calculated hereunder shall be continuously recalculated at the time any information relevant to such calculation changes. 

 

					
	 	  	A-29	  	Sale and Servicing Agreement (20[ ]-[ ])

 SCHEDULE I 
  

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RECEIVABLES 
  

	(a)	Characteristics of Receivables As of its respective Cut-Off Date (or such other date as may be specifically set forth below), each Receivable: 

  
 (i) has been fully and properly executed or electronically
authenticated by the Obligor thereto; 
  
 (ii)
has been originated directly by the related Originator in accordance with its customary origination practices; 
  
 (iii) as of the Closing Date or Subsequent Funding Date, as applicable, is secured by a first priority validly perfected security interest
in the Financed Vehicle in favor of the applicable Originator, as secured party, or all necessary actions with respect to the Receivable has been taken or will be taken to perfect a first priority security interest in the Financed Vehicle in favor
of the applicable Originator, as secured party, which security interest, in either case, is assignable and has been so assigned by the applicable Referral Originator to COAF (in the case of a Referral Receivable), by COAF to the Seller and by the
Seller to the Issuer and is enforceable by or on the Issuer’s behalf; 
  
 (iv) contains customary and enforceable provisions such that the rights and remedies of the holder thereof are adequate for realization against the collateral of the benefits of the security; 
  
 (v) provided, at origination, for level monthly payments
which fully amortize the initial Principal Balance over the original term; provided, that the amount of the first or last payment may be different from the level payment but in no event more than three times the level monthly payment or less
than one-third of the level monthly payment; 
  
 (vi) provides for interest at the Contract Rate specified in the Schedule of Receivables; 
  
 (vii) was originated in the United States and denominated in Dollars; 
  
 (viii) is secured by a new or used automobile or light-duty truck; 
  
 (ix) has a Contract Rate of at least [3.00]%; 
  
 (x) had an original term to maturity of not more than 72
months and has a remaining term to maturity, as of its respective Cut-Off Date, of not more than 72 months and not less than 6 months; 
  
 (xi) had an original Principal Balance of no more than $[50,000]; 
  

					
	 	  	I-1	  	Schedule I to the
Sale and Servicing Agreement

 (xii) has a Principal Balance on its respective Cut-Off Date of greater than or equal to
$[500]; 
  
 (xiii) has a final Scheduled Payment
due on or before [            ]; 
  
 (xiv) was not more than 30 days past due as of its Cut-Off Date; 
  
 (xv) is not subject to a force-placed Insurance Policy on the related Financed Vehicle; 
  
 (xvi) is a Simple Interest Receivable, and scheduled
payments under each Receivable have been applied in accordance with the method for allocating principal and interest set forth in such Receivable; and 
  
 (xvii) has not had an extension or modification except as permitted by the terms of the Customary Servicing Practices. 
  

	(b)	Schedule of Receivables The information with respect to a Receivable transferred on the Closing Date or on any Funding Date set forth in the Schedule of Receivables for such
date and the computer tape to the Note Insurer and the Indenture Trustee was true and correct in all material respects as of the Cut-Off Date for such Receivable. 

  

	(c)	Compliance with Law As of the Closing Date or related Funding Date, as applicable, the Receivable complied, and the transfer of that Receivable to the Issuer complied at the
time of transfer, in all material respects with all requirements of applicable federal, state and local laws, and regulations thereunder, including, to the extent applicable, usury laws, the Federal Truth in Lending Act, the Equal Credit Opportunity
Act, the Fair Credit Reporting Act, the Federal Trade Commission Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and Z, the Servicemembers Civil Relief
Act, state adaptations of the National Consumer Act and of the Uniform Consumer Credit Code and any other consumer credit, equal opportunity and disclosure laws applicable to that Receivable. 

  

	(d)	Binding Obligation The Receivable constitutes the legal, valid and binding payment obligation in writing of the Obligor, enforceable by the holder thereof in accordance with
its terms, except (i) as enforceability may be limited by applicable bankruptcy, insolvency, reorganization, liquidation or other similar laws and equitable principles relating to or affecting the enforcement of creditors’ rights generally
and (ii) as such Receivable may be modified by the application after the applicable Cut-Off Date of the Servicemembers Civil Relief Act, as amended to the extent applicable to the related Obligor. 

  

	(e)	Receivable in Force The Receivable has not been satisfied, subordinated or rescinded nor has the related Financed Vehicle been released from the lien of such Receivable in
whole or in part. 

  

					
	 	  	I-2	  	Schedule I to the
Sale and Servicing Agreement

	(f)	No Default; No Waiver Except for payment delinquencies continuing for a period of not more than 30 days as of the applicable Cut-Off Date, the Seller has no knowledge that a
default, breach, violation or event permitting acceleration under the terms of the Receivable existed as of the applicable Cut-Off Date or that any continuing condition that with notice or lapse of time, or both, would constitute a default, breach,
violation or event permitting acceleration under the terms of the Receivable had arisen as of the applicable Cut-Off Date and the Seller has not waived any of the foregoing. 

  

	(g)	Insurance The Receivable requires that the related Financed Vehicle be covered by a comprehensive and collision insurance policy (i) subject to a maximum deductible of
$1,000, (ii) naming the Servicer as loss payee and (iii) insuring against loss and damage due to fire, theft, transportation, collision and other risks generally covered by comprehensive and collision insurance policies.

  

	(h)	No Government Obligor The Obligor on the Receivable is not the United States of America or any state thereof or any local government, or any agency, department, political
subdivision or instrumentality of the United States of America or any state thereof or any local government. 

  

	(i)	Assignment No Receivable has been originated in, or is subject to the laws of, any jurisdiction under which the sale, transfer, assignment, setting over, conveyance or pledge
of such Receivable would be unlawful, void, or voidable. COAF has not entered into any agreement with any Obligor that prohibits, restricts or conditions the assignment of the related Receivable. 

  

	(j)	Good Title. It is the intention of the Seller that the sale, transfer, assignment and conveyance herein contemplated constitute an absolute sale, transfer, assignment and
conveyance of the Receivables and that the Receivables not be part of the Seller’s estate in the event of the filing of a bankruptcy petition by or against the Seller under any bankruptcy law. As of the Closing Date or Funding Date, as
applicable, no Receivable has been sold, transferred, assigned, conveyed or pledged to any Person other than pursuant to the Transaction Documents. As of the Closing Date or Funding Date, as applicable, and immediately prior to the sale and transfer
herein contemplated, the Seller had good and marketable title to and was the sole owner of each Receivable free and clear of all Liens (except any Lien which will be released prior to assignment of such Receivable hereunder), and, immediately upon
the sale and transfer thereof, the Issuer will have good and marketable title to each Receivable, free and clear of all Liens. 

  

	(k)	Filings. All filings (including, without limitation, UCC filings) necessary in any jurisdiction to give the Issuer a first priority, validly perfected ownership interest in
the Purchased Assets (other than any Purchased Assets with respect thereto, to the extent that an ownership interest therein cannot be perfected by the filing of a financing statement), and to give the Indenture Trustee a first priority perfected
security interest therein, will be made within ten days of the Closing Date. 

  

					
	 	  	I-3	  	Schedule I to the
Sale and Servicing Agreement

	(l)	Priority. The Receivable is not pledged, assigned, sold, subject to a security interest, or otherwise conveyed other than pursuant to the Transaction Documents. The Seller
has not authorized the filing of and is not aware of any financing statements against any Originator or the Seller that include a description of collateral covering any Receivable other than any financing statement relating to security interests
granted under the Transaction Documents or that have been or, prior to the assignment of such Receivable hereunder, will be terminated, amended or released. The Sale and Servicing Agreement creates a valid and continuing security interest in the
Receivable (other than the Related Security with respect thereto) in favor of the Issuer which security interest is prior to all other Liens and is enforceable as such against all other creditors of and purchasers and assignees from the Seller.

  

	(m)	Characterization of Receivables. Each Receivable constitutes either “electronic chattel paper,” “tangible chattel paper,” an “account,” an
“instrument,” or a “general intangible,” each as defined in the UCC. 

  

	(n)	One Original. There is only one executed original, electronically authenticated original or authoritative copy of the Contract (in each case within the meaning of the UCC)
related to each Receivable. 

  

	(o)	No Defenses. As of the related Cut-Off Date, there are no rights of rescission, offset, claim, counterclaim or defense, and the Seller has no knowledge of the same being
asserted or threatened, with respect to any Receivable. 

  

	(p)	No Fraud or Misrepresentation. Each Receivable was (i) originated by the applicable Originator and (ii) was sold by the applicable Referral Originator (in the case
of a Referral Receivable) to COAF and by COAF to the Seller and by the Seller to the Issuer without any fraud or misrepresentation on the part of the applicable Originator or the Seller. 

  

	(q)	No Impairment. Other than pursuant to the Transaction Documents or as released prior to the Closing Date or Funding Date, as applicable, no Originator has done anything to
convey any right to any Person that would result in such Person having a right to payments due under a Receivable or otherwise to impair the rights of the Issuer, the Note Insurer, the Indenture Trustee or the Noteholders in any Receivable or the
proceeds thereof. 

  

	(r)	Receivable Not Assumable. No Receivable is assumable by another Person in a manner which would release the Obligor thereof from such Obligor’s obligations with respect
to such Receivable. 

  

	(s)	Bankruptcy Proceeding. As of the applicable Cut-off Date, none of the Receivables was noted in the Servicer’s records as dischargeable debt under a bankruptcy proceeding
and, as of the applicable Cut-off Date, none of the Receivables has been reduced or discharged in any bankruptcy proceeding. 

  

	(t)	No Charge Off. As of its respective Cut-off Date, no Receivable has been charged off for accounting purposes by the Seller. 

  

					
	 	  	I-4	  	Schedule I to the
Sale and Servicing Agreement

	(u)	Extensions Modifications. No extension or modification has been made with respect to any Receivable other than as evidenced in the Receivable File relating thereto.

  

	(v)	No Adverse Selection. No selection procedures materially adverse to the Noteholders or the Note Insurer were utilized in selecting any Receivable from those receivables owned
by COAF or the Referral Originators, as applicable, which met the selection criteria contained in this Schedule I. 

  

					
	 	  	I-5	  	Schedule I to the
Sale and Servicing Agreement

 SCHEDULE II 
  

NOTICE ADDRESSES 
  
 If to the Issuer: 
  
 Capital One Auto Finance Trust 20[    ]-[    ] 
 c/o Wilmington Trust Company

 1100 North Market Street 
 Rodney Square North, Wilmington,
Delaware 19890-0001 
 Facsimile: (302) 636-4140 
 Attention:
Corporate Trust Department 
  
 with copies to the Administrator and the Indenture
Trustee 
  
 If to COAF, the Servicer or the Administrator: 
  
 Capital One Auto Finance, Inc. 
 1680 Capital One Drive 
 McLean, Virginia 22102 
 Facsimile: (703) 720-2121 
 Attention: Manager of Securitization 
  
 with a copies to: 
  
 Capital One Auto Finance, Inc. 
 1680 Capital
One Drive 
 McLean, Virginia 22102 
 Facsimile:
(703) 720-2227 
 Attention: Funding Counsel 
  
 Capital One Auto Finance, Inc. 
 3901 N. Dallas Parkway 
 Plano, Texas 75093 
 Facsimile: (888) 722-8255 
 Attention: Chief Financial Officer 
  
 Capital One Auto Finance, Inc. 
 3901 N. Dallas Parkway 
 Plano, Texas 75093 
 Facsimile: (866) 722-6341 
 Attention: Legal 
  

					
	 	  	II-1	  	Schedule II to the
Sale and Servicing Agreement

 If to the Seller: 
  
 Capital One Auto Receivables, LLC 
 140 E. Shore Drive 
 Room 1052-D 
 Glen Allen, Virginia 23059 
 Facsimile: (804) 290-6666 
 Telephone: (804) 290-6736 
 Attention: Capital Markets 
  
 with a copy to: 
  
 Capital One Auto Finance, Inc.

 1680 Capital One Drive 
 McLean, Virginia 22102 
 (Facsimile No. (703) 720-2227 
 Attention: Funding Counsel 
  
 If to the Indenture Trustee: 
  
 JPMorgan Chase Bank, N.A. 
 4 New York Plaza, 6th Floor 
 New York, New York 10004-2477 
 Facsimile: (212) 623-5932 
 Attention: Worldwide Securities Services/Structured Finance Services – Capital One Auto Finance Trust 20[ ]-[ ] 
  
 If to the Owner Trustee: 
  
 Wilmington Trust Company 
 1100 North Market Street 
 Rodney Square North, Wilmington, Delaware 19890-0001 
 Facsimile: (302) 636-4140

 Attention: Corporate Trust Department 
  
 If to Moody’s: 
  
 Moody’s Investors Service, Inc. 
 99 Church Street 
 New York, New York 10007 
 Facsimile: (212) 298-7139 
 Attention: ABS Monitoring Group, 4th
Floor 
  

					
	 	  	II-2	  	Schedule II to the
Sale and Servicing Agreement

 If to S&P: 
  
 Standard & Poor’s Ratings Services 
 55 Water Street 

New York, New York 10041 
 Facsimile: (212) 438-2664 
 Attention: Asset Backed Surveillance Group 
  
 If to Fitch: 
  
 Fitch, Inc. 
 One State Street Plaza, 32nd Floor 
 New York, New York 10004 
 Facsimile: (212) 480-4438 
 Attention: Asset-Backed Securities Group

  
 If to the Note Insurer: 
  
 If to the Initial Swap Counterparty: 
  

					
	 	  	II-3	  	Schedule II to the
Sale and Servicing Agreement

 EXHIBIT A 
  
 NOTICE OF FUNDING DATE 
  
 In accordance with the Indenture dated as of
[                    ] (as amended or supplemented from time to time, the “Indenture”) by and between Capital One Auto Finance Trust
20[    ]-[    ] (the “Issuer”), and JPMorgan Chase Bank, N.A., as indenture trustee (the “Indenture Trustee”), the undersigned hereby gives notice of the Funding Date to occur
on or before [            ], 200[    ] for each of the Receivables listed on the Schedule of Receivables to be delivered to you on or prior to such Funding Date. Unless
otherwise defined herein, capitalized terms have the meanings set forth in Appendix A to the Sale and Servicing Agreement dated as of [            ] by and between the Issuer, the Indenture
Trustee, Capital One Auto Finance, Inc. and Capital One Auto Receivables, LLC, as Seller (the “Seller”). 
  
 Such Subsequent Receivables represent the following amounts: 
  

				
	 Aggregate Principal Balance of Subsequent Receivables
 as of the Subsequent Cut-Off Date:
	  	$	__________________
		
	 Amount to be wired to or at the direction of the Seller in
 payment for such Subsequent Receivables:
	  	$	__________________

  
 Subsequent Cut-Off
Date:                     , 200[  ] 
  
 The undersigned hereby certifies that, in connection with the Funding Date specified above, the undersigned has complied with all terms and provisions
specified in Section 2.5 of the Sale and Servicing Agreement, including, but not limited to, delivery of the Officer’s Certificate, as specified therein. 
  

			
	 Date:
                    , 200[  ]

	
	 CAPITAL ONE AUTO FINANCE TRUST 20[    ]-[    ]

		
	 By:
	 	 Capital One Auto Finance, Inc., as Administrator

		
	By:	 	 

  

					
	 	  	A-1	  	Exhibit A to the
Sale and Servicing Agreement

 EXHIBIT B 
  
 JOINT OFFICER’S CERTIFICATE 
  
 re: Funding Date 
  
 CAPITAL ONE AUTO FINANCE, INC. 
 CAPITAL ONE AUTO RECEIVABLES, LLC 
 CAPITAL ONE AUTO FINANCE TRUST 20[    ]-[    ] 
  
 This Officer’s Certificate is being delivered in accordance with Section 2.5 of that certain Sale and
Servicing Agreement dated as of [                        ] (as amended, modified or supplemented from time to time, the
“Sale and Servicing Agreement”) by and between Capital One Auto Finance Trust 20[    ]-[    ] (the “Issuer”), Capital One Auto Receivables, LLC (the
“Seller”), Capital One Auto Finance, Inc. (the “Servicer”) and JPMorgan Chase Bank, N.A. (the “Indenture Trustee”). Terms not otherwise defined herein shall have the meanings ascribed thereto in the
Appendix A to the Sale and Servicing Agreement. Reference is hereby made to the Funding Date to occur on                     ,
200[    ] (the “Subject Funding Date”). 
  
 By his or her signature below, each of the undersigned officers on behalf of the Servicer, the Seller, and the Issuer, as the case may be, certify to the Indenture Trustee and the Note Insurer that: 
  
 (a) the representations and warranties of the Seller contained in
Section 2.2 of the Sale and Servicing Agreement with respect to the Subsequent Receivables to be acquired on the Subject Funding Date (which are listed on the attached Schedule of Receivables) are true and correct as of the applicable
date set forth on Schedule I to the Sale and Servicing Agreement; 
  
 (b) the representations and warranties of the Seller contained in Section 5.1 of the Sale and Servicing Agreement are true and correct as of the date hereof; 
  
 (c) the representations and warranties of the Servicer set forth in Section 6.1 of the Sale and Servicing
Agreement are true and correct as of the date hereof; and 
  
 (d)
the requirements stated in Section 2.5 of the Sale and Servicing Agreement regarding the Subsequent Receivables to be acquired on the Subject Funding Date have been met. 
  

					
	 	  	B-1	  	Exhibit B to the
Sale and Servicing Agreement

			
	Date: 	 	 ____________________________, 200    

	
	 CAPITAL ONE AUTO FINANCE TRUST 20[     ]-[     ]

		
	By:	 	 Capital One Auto Finance, Inc., as Administrator

		
	By:	 	 
	 	 	Name:
	 	 	Title:
	
	CAPITAL ONE AUTO FINANCE, INC.
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

	
	CAPITAL ONE AUTO RECEIVABLES, LLC
		
	By:	 	 
	 	 	 Name:

	 	 	 Title:

  

					
	 	  	B-2	  	Exhibit B to the
Sale and Servicing Agreement

 SCHEDULE OF RECEIVABLES 
  

					
	 	  	B-3	  	Exhibit B to the
Sale and Servicing Agreement

 EXHIBIT C 
  
 ASSIGNMENT PURSUANT TO SALE AND SERVICING AGREEMENT 
  
 [Date] 
  
 For value received, in accordance with the Sale and Servicing Agreement (the “Agreement”), dated as of
[                    ], by and between Capital One Auto Finance Trust 20[    ]-[    ], a Delaware statutory
trust (the “Issuer”), Capital One Auto Receivables, LLC, a Delaware limited liability company (the “Seller”), Capital One Auto Finance, Inc., a Texas corporation (“COAF”), and JPMorgan Chase Bank,
N.A. (the “Indenture Trustee”), on the terms and subject to the conditions set forth in the Agreement, the Seller does hereby irrevocably sell, transfer, assign and otherwise convey to the Issuer without recourse (subject to the
obligations in the Agreement) on the date hereof, all right, title and interest of the Seller, whether now owned or hereafter acquired, in, to and under the Receivables set forth on the schedule of Receivables delivered by the Seller to the Issuer
on the date hereof (such schedule, together with any other Schedule of Receivables delivered by Seller to the Issuer pursuant to the Agreement, the “Schedule of Receivables”), and the Collections after the related Cut-Off Date and
the Related Security relating thereto, together with all of Seller’s rights under the Purchase Agreement and all proceeds of the foregoing, which sale shall be effective as of such Cut-Off Date. 
  
 The foregoing sale does not constitute and is not intended to result in an
assumption by the Issuer of any obligation of the Seller or any Originator to the Obligors, the Dealers, insurers or any other Person in connection with the Receivables or the other assets and properties conveyed hereunder or any agreement, document
or instrument related thereto. 
  
 This assignment is made
pursuant to and upon the representations, warranties and agreements on the part of the undersigned contained in the Agreement and is governed by the Agreement. 
  

Capitalized terms used herein and not otherwise defined shall have the meaning assigned to them in the Agreement. 
  
 IN WITNESS HEREOF, the undersigned has caused this assignment to be duly
executed as of the date first above written. 
  

			
	CAPITAL ONE AUTO RECEIVABLES, LLC
		
	By:	 	 
	 Name:
	 	 
	 Title:
	 	 

  

					
	 	  	C-1	  	Exhibit C to the
Sale and Servicing Agreement

 EXHIBIT D 
  
 FORM OF SERVICER’S CERTIFICATE 
  

					
	 	  	D-1	  	Exhibit D to the
Sale and Servicing Agreement

 EXHIBIT E 
  
 PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS 
  
 In addition to the representations, warranties and covenants contained in the Agreement, the Seller hereby represents, warrants, and covenants to the
Issuer and the Indenture Trustee as follows on the Closing Date and on each Funding Date: 
  
 General 
  
 1. This Agreement
creates a valid and continuing security interest (as defined in the applicable UCC) in the Receivables and the other Transferred Assets in favor of the Issuer, which security interest is prior to all other Liens, and is enforceable as such as
against creditors of and purchasers from the Seller. 
  
 2. The Receivables
constitute “chattel paper” (including “electronic chattel paper” or “tangible chattel paper”), “accounts,” “instruments” or “general intangibles,” within the meaning of the UCC. 

 
 3. Each Receivable is secured by a first priority validly perfected security interest in
the related Financed Vehicle in favor of the applicable Originator, as secured party, or all necessary actions with respect to such Receivable have been taken or will be taken to perfect a first priority security interest in the related Financed
Vehicle in favor of the applicable Originator, as secured party. 
  
 Creation 
  
 4. Immediately prior to the sale, transfer,
assignment and conveyance of a Receivable by the Seller to the Issuer, the Seller owned and had good and marketable title to such Receivable free and clear of any Lien and immediately after the sale, transfer, assignment and conveyance of such
Receivable to the Issuer, the Issuer will have good and marketable title to such Receivable free and clear of any Lien. 
  
 5. The related Originator has received all consents and approvals to the sale of the Receivables hereunder to the Issuer required by the terms of the Receivables that
constitute instruments. 
  
 Perfection 
  
 6. The Seller has caused or will have caused, within ten days after the effective date of
this Agreement, 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 from the Seller to Issuer, and the security interest
in the Receivables granted to the Issuer hereunder; and the Servicer, in its capacity as custodian, has in its possession the original copies of such instruments or tangible chattel paper that constitute or evidence the Receivables, and all
financing statements referred to in this paragraph contain a statement that: “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party”. 
  

					
	 	  	E-1	  	Exhibit E to the
Sale and Servicing Agreement

 7. With respect to Receivables that constitute instruments or tangible chattel paper, either: 
  
 (i) All original executed copies of each such instrument or tangible chattel
paper have been delivered to the Indenture Trustee; or 
  
 (ii)
Such instruments or tangible chattel paper are in the possession of the Servicer and the Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer, in its capacity as custodian, is holding such instruments or
tangible chattel paper solely on behalf and for the benefit of the Indenture Trustee; or 
  
 (iii) The Servicer received possession of such instruments or tangible chattel paper after the Indenture Trustee received a written acknowledgment from the Servicer that the Servicer is acting solely as agent of the
Indenture Trustee. 
  
 Priority 
  
 8. Neither the Seller nor COAF has authorized the filing of, or is aware of any financing
statements against either the Seller or COAF that include a description of collateral covering the Receivables other than any financing statement (i) relating to the conveyance of the Receivables by COAF to the Seller under the Purchase
Agreement, (ii) relating to the security interest granted to Issuer hereunder or (iii) that has been terminated. 
  
 9. Neither the Seller nor COAF is aware of any material judgment, ERISA or tax lien filings against either the Seller or COAF. 
  
 10. Neither the Seller nor COAF nor a custodian holding any Receivable that is electronic
chattel paper has communicated an authoritative copy of any loan agreement that constitutes or evidences such Receivable to any Person other than the Servicer. 
  

11. None of the instruments, tangible chattel paper or electronic chattel paper that constitute or evidence the Receivables has any marks or notations indicating that
they have been pledged, assigned or otherwise conveyed to any Person other than the Seller, the Issuer or the Indenture Trustee. 
  
 Survival of Perfection Representations 
  
 12. Notwithstanding any other provision of the Sale and Servicing Agreement or any other Transaction Document, the perfection representations, warranties and covenants
contained in this Exhibit E shall be continuing, and remain in full force and effect until such time as all obligations under the Transaction Documents and the Notes have been finally and fully paid and performed. 
  
 No Waiver 
  
 13. The parties to the Sale and Servicing Agreement shall provide the Rating Agencies with
prompt written notice of any breach of the perfection representations, warranties and covenants contained in this Exhibit E, and shall not, without satisfying the Rating Agency Condition, waive a breach of any of such perfection representations,
warranties or covenants. 
  

					
	 	  	E-2	  	Exhibit E to the
Sale and Servicing Agreement

 Servicer to Maintain Perfection and Priority 
  
 14. The Servicer covenants that, in order to evidence the interests of the Seller and Issuer
under the Sale and Servicing Agreement and the Indenture Trustee under the Indenture, Servicer shall take such action, or execute and deliver such instruments as may be necessary or advisable (including, without limitation, such actions as are
requested by the Indenture Trustee) to maintain and perfect, as a first priority perfected security interest, the Indenture Trustee’s security interest in the Receivables. The Servicer shall, from time to time and within the time limits
established by law, prepare and file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other filings
necessary or advisable to continue, maintain and perfect the Indenture Trustee’s security interest in the Receivables as a first-priority perfected security interest (each a “Filing”). 
  

					
	 	  	E-3	  	Exhibit E to the
Sale and Servicing Agreement

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