Document:

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                                                                   EXHIBIT 10.31

                            PORTAL SERVICES AGREEMENT

      This Portal Services Agreement (this "Agreement") is entered into as of
October 28, 1999 (the "Effective Date"), by and between Inktomi Corporation, a
Delaware corporation with its principal place of business at 4100 E. Third
Avenue, Mail Stop FC2-5, Foster City, California, 94404 ("Inktomi") and
Microsoft Corporation, a Washington corporation, with its principal place of
business at One Microsoft Way, Redmond, Washington, 98052 ("Customer").

                                   RECITALS

      A. Inktomi utilizes its technology to provide a variety of services
including without limitation those described on exhibits to this Agreement.

      B. Customer desires to retain Inktomi to provide certain of Inktomi's
services to Customer in accordance with the terms and conditions of this
Agreement.

      C. Customer has previously entered into the following agreements with
Inktomi (i) a Software Development Agreement dated July 27, 1997; (ii) an
Information Services Agreement dated July 27, 1997; (iii) a Software Hosting
Agreement dated July 27, 1997; and (iv) a License Agreement dated May 12, 1997.
The parties now desire that such agreements be terminated as of the Effective
Date of this Agreement and that this Agreement supercede and supplant such
agreements.

NOW THEREFORE, Inktomi and Customer agree as follows:

                                    AGREEMENT

      In consideration of the foregoing and the mutual promises contained herein
the parties agree as follows:

      1. Definitions. For purposes of this Agreement, in addition to the other
terms defined elsewhere in this Agreement, the following terms shall have the
meanings set forth below:

            1.1. "Intellectual Property Rights" means any and all rights
existing from time to time under patent law, copyright law, semiconductor chip
protection law, moral rights law, trade secret law, trademark law, unfair
competition law, publicity rights law, privacy rights law, and any and all other
proprietary rights, and any and all applications, renewals, extensions and
restorations thereof, now or hereafter in force and effect worldwide.

            1.2. "Inktomi Technology" means the computer software, technology
and/or documentation which is supplied to Customer by Inktomi or used by Inktomi
in connection with delivery of a Service, including without limitation all
source code and object code therefor and all algorithms, ideas and Intellectual
Property Rights therein, including upgrades, updates, successor versions,
replacement versions thereof. The definition of "Inktomi Technology" shall
include any supplemented definition set forth in an Exhibit for a Service.

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            1.3. "Services" means the various services to be provided by Inktomi
for Customer under this Agreement, as more fully described on the Exhibits
attached to this Agreement.

            1.4. "Site" means a Web site and/or sites established and maintained
by Customer or other authorized entity (to the extent permitted) through which
end-users may access a Service as set forth in the Exhibit for such Service. For
purposes of this Agreement, "Site" shall include MSN, other Microsoft Web sites,
and MSN-branded, Microsoft-branded, co-branded and private-labeled Web sites,
whether hosted or operated by Customer or third parties or subsidiaries,
affiliates, or joint ventures or partnerships in which Customer participates,
and any subsequent versions or upgrades of the foregoing, provided, however,
that except as set forth in Section 2.1.1. herein no such Site shall resell or
distribute such Service as standalone OEM services to third parties in
competition to Inktomi.

            1.5. "Term" shall have the meaning indicated in Section 9.

            1.6. "Web" means the World Wide Web, containing, inter alia, pages
written in hypertext markup language (HTML) and/or any similar successor
technology.

            1.7. "Web page" means a document on the Internet which may be viewed
in its entirety without leaving the applicable distinct URL address.

            1.8. "Web site" means a collection of inter-related Web pages.

      2. Provision of Services.

            2.1. Services. Subject to the terms and conditions of this
Agreement, Inktomi shall provide each Service in accordance with the
functionality specifications, performance criteria specified in the Exhibit and
Schedule applicable to such Service as the same may change from time to time
during the Term of this Agreement with the mutual consent of Customer and
Inktomi, and all other terms and conditions contained in this Agreement,
including Exhibits. Inktomi agrees that the Services shall be performed in a
professional manner and shall be of a high grade, nature and quality.

                  2.1.1. Scope of Rights. Customer shall have the right to use
the Services and the search results generated thereby solely in connection with
the provision of Customer's search engine services throughout the world during
the Term, if and to the extent that it may determine is appropriate, including
without limitation by way of sublicensing any and all rights herein to third
parties. However, with respect to such sublicensing: (i) such sublicensees may
operate Customer co-branded and/or private label sites accessing all or portions
of the Services through Customer servers, provided that any such private labeled
sublicensee sites shall include branding or attribution (such as "powered by MSN
Search") which identifies Customer as the source of the Services (ii) Results
Sets generated by sublicensees will be cumulative (but not double-counted) with
Results Sets generated by Customer for purposes of Section 5; (iii) any
sublicense shall be effective only, during the Term; and (iv) each sublicensee
shall agree to hold all confidential and proprietary information regarding
Inktomi and the Services in confidence, to use all or portions of the Services
only in connection with providing search engine services to end users through
sites operated by such sublicensee, and not to reverse engineer, disassemble or
decompile the object code version of any Inktomi Technology. Except as set forth
above, neither Customer nor its sublicensees shall be restricted in any way with
respect to the access to and use of the Services or customized Customer services
based on the Services. Inktomi's sole remedy,

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and Customer's sole obligation, for any breach by a Customer's sublicensee of
its sublicense rights is termination or suspension of such sublicense.

            2.2. Additional Services. Throughout the Term of this Agreement, the
Services and Inktomi Technology and related features, functionality,
performance, support and upgrades provided hereunder will be at least equal to
those Inktomi provides to all other Inktomi customers. In the event Inktomi
develops new Services and Inktomi Technology that it licenses or provides
separately on a premium basis to its search customer base, then Inktomi shall
offer such features and functionality to Customer at most favored customer
pricing as against other Inktomi customers who have entered into agreements with
Inktomi for similar services and with similar contract terms as those described
herein. New Services and Inktomi Technology that are made available to Inktomi
customers on a premium or non-premium basis will be offered to Customer no later
than the same time they are offered to other Inktomi customers. Furthermore,
upon request, and provided that Customer is current with service fees due under
this Agreement, Customer may request customized services to be provided by
Inktomi which are not otherwise contemplated or provided for by this Agreement.
Such customized services shall be mutually agreed upon by the parties and shall
be set forth, in Inktomi's reasonable discretion, on an additional Exhibit to
this Agreement which upon execution, shall become binding between the parties.
Such customized services, if provided pursuant to an additional Exhibit shall be
provided in accordance with the rates, charges, terms and conditions of such
Exhibit and the terms of this Agreement.

            2.3. End-User Support. Inktomi, shall provide technical support for
the Services to the extent set forth in Schedule 1 hereto. Except as set forth
in such Schedule, Customer, at its own expense, shall provide all support of the
Site.

            2.4. Nonexclusive Services. Customer understands that Inktomi will
provide the Services on a nonexclusive basis. Customer acknowledges that Inktomi
has customized and provided, and will continue to customize and provide, its
software and technology to other parties for use in connection with a variety of
applications, including, without limitation, search engine, e-commerce and
communication applications. Nothing in this Agreement will be deemed to limit or
restrict Inktomi from customizing and providing its software and technology to
other parties for any purpose or in any way affect the rights granted to such
other parties. Further, nothing in this Agreement will be deemed to limit or
restrict Customer's ability to acquire, license, independently develop, or serve
for itself, or have others acquire, license, develop, or serve for Customer,
similar services performing the same or similar functions as the Services
contemplated by this Agreement, or to market and offer such similar services in
addition to the Services contemplated by this Agreement.

            2.5 [*]

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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      3. Intellectual Property Licenses/Ownership.

            3.1. Inktomi Technology. As between Customer and Inktomi, Customer
acknowledges that Inktomi owns all right, title and interest in and to the
Inktomi Technology (except for any software licensed by third parties to
Inktomi), and that Customer shall not acquire any right, title, and interest in
or to the Inktomi Technology, except as expressly set forth in this Agreement.
Customer shall not modify, adapt, translate, prepare derivative works from,
decompile, reverse engineer, disassemble or otherwise attempt to derive source
code from any Inktomi Technology, except and only to the extent that such
activity is otherwise permitted by Inktomi or is expressly permitted by
applicable law notwithstanding this limitation. Customer will not remove,
obscure, or alter Inktomi's copyright notice, trademarks, or other proprietary
rights notices affixed to or contained within any Inktomi software or
documentation.

      4. Warranties and Disclaimer. Each party agrees as follows:

            4.1. Inktomi Warranties. Inktomi warrants that: (i) it has full
power and authority to enter into this Agreement; and (ii) it has not previously
and will not grant any rights in the Inktomi Technology to any third party that
are impede the rights granted to Customer hereunder; (iii) throughout the Term,
each Service provided for Customer and the Inktomi Technology provided in
connection with each such Service shall be free of material errors and defects
and shall perform in accordance with the performance criteria set forth on the
applicable Exhibit for such Service; and (iv) each Service provided for the
Customer and the Inktomi Technology provided in connection with each Service do
not and will not infringe any copyright, patent, trade secret, or other
proprietary right held by any third party, and Inktomi has no knowledge of any
allegations of any such infringement. INKTOMI MAKES NO OTHER WARRANTY OF ANY
KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR OTHERWISE, INCLUDING WITHOUT
LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR USE, AND
NONINFRINGEMENT. IN PARTICULAR, INKTOMI MAKES NO WARRANTIES WHATSOEVER REGARDING
THE NATURE OF THE MATERIAL CONTAINED IN ITS SEARCH DATABASES AND TO THE MAXIMUM
EXTENT PERMITTED BY LAW DISCLAIMS ANY RESPONSIBILITY OR LIABILITY FOR SUCH
MATERIAL.

            4.2. Customer Warranties. Customer warrants that: (i) it has full
power and authority to enter into this Agreement; and (ii) it will seek all
necessary governmental approvals required to effectuate this Agreement. CUSTOMER
MAKES NO OTHER WARRANTIES OF ANY KIND, WHETHER EXPRESS, IMPLIED, STATUTORY OR
OTHERWISE, INCLUDING WITHOUT LIMITATION WARRANTIES OF MERCHANTABILITY, FITNESS
FOR A PARTICULAR USE, AND NONINFRINGEMENT.

      5. Payments.

            5.1. Fees. Customer shall pay Inktomi fees for the Services in
accordance with the Schedule 2 hereto.

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            5.2. Records. To the extent applicable for each Service and solely
to the extent each party has obligations to make payments to the other party in
connection with such Service each party shall: (i) maintain all records relevant
to calculating service fees and/or revenues for a Service for a two (2) year
period following the year in which any payments pertaining to such service fees
and/or revenues were due; and (ii) have the right to designate a certified
public accountant (other than on a contingency fee basis) to examine the other
party's records from time to time but no more than once every year, and not
later than one year following the date of the records or payment in question, to
determine the correctness of any payment made under this Agreement. Such
examination shall be conducted at reasonable times during the audited party's
normal business hours and upon at least ten (10) business days' advance notice
and in a manner so as not to unreasonably interfere with the conduct of the
audited party's business. If any such examination indicates that the audited
party has underpaid by more than five percent (5%) of the aggregate payments due
for the period subject to such examination, the audited party shall reimburse
the other party for reasonable costs of such examination.

            5.3. Taxes. Customer shall be responsible for all sales taxes, use
taxes, withholding taxes, value added taxes and any other similar taxes imposed
by any federal, state, provincial or local governmental entity on the
transactions contemplated by this Agreement, excluding taxes based upon
Inktomi's net income. When Inktomi has the legal obligation to pay or collect
such taxes, the appropriate amount shall be invoiced to and paid by Customer
unless Customer provides Inktomi with a valid tax exemption certificate
authorized by the appropriate taxing authority.

            5.4. Payment. All fees quoted and payments made hereunder shall be
in U.S. Dollars. Within thirty (30) days after the end of each calendar month
with respect to which Customer owes Inktomi any service fees, Inktomi shall
furnish Customer with an invoice. The invoice shall be based upon the fees set
forth in the applicable Schedule(s) to this Agreement during the month then
ended, and shall contain information reasonably sufficient to discern how fees
were computed. Within thirty (30) days of receiving an invoice from Inktomi,
Customer shall pay all amounts due under this Agreement to Inktomi at the
address indicated at the beginning of this Agreement or such other location as
Inktomi designates in writing.

      6. Confidentiality.

            6.1 The parties hereby agree that all terms and conditions of that
certain Microsoft Corporation Non-Disclosure Agreement between them dated March
18, 1997, shall govern the disclosure of confidential and proprietary
information made under this Agreement. In this connection, the parties hereby
agree that the terms of this Agreement shall be treated as confidential in
accordance with the terms of said Non-Disclosure Agreement.

            6.2 Without having first sought and obtained Customer's written
approval (which Customer may withhold in its sole and absolute discretion),
Inktomi shall not, directly or indirectly, (i) trade upon this transaction or
any aspect of Inktomi's relationship with Customer, or (ii) otherwise deprecate
Microsoft technology.

            6.3 Neither party will issue any press release or make any public
announcement(s) relating in any way whatsoever to this Agreement or the
relationship established by this Agreement without the express prior written
consent of the other party. However, the parties acknowledge that this
Agreement, or portions thereof, may be required under applicable law to be
disclosed, as part of or an exhibit to a party's required public disclosure
documents. If either party is advised by its legal counsel that such disclosure
is required, it will notify the other

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in writing and the parties will jointly seek confidential treatment of this
Agreement to the maximum extent reasonably possible, in documents approved by
both parties and filed with the applicable governmental or regulatory
authorities.

      7. Indemnification.

            7.1 [*]

            7.2 [*]

            7.2 Separate Counsel; Reimbursement. An indemnified party shall have
the right to employ separate counsel and participate in the defense of any claim
or action. The indemnifying party shall reimburse the indemnified party upon
demand for any payments made or loss suffered by it at any time after the date
hereof, based upon the judgment of any court of competent jurisdiction or
pursuant to a bona fide compromise or settlement of claims, demands, or actions,
in respect to any damages related to any claim or action under this Section 7.

            7.3 Settlement. The indemnifying party may not settle any claim or
action under this Section 7 without first obtaining the indemnified party's
written permission, which permission will not be unreasonably withheld. In the
event Customer and Inktomi agree to settle a claim or action, each party agrees
not to publicize the settlement without first obtaining the other's written
permission, which permission will not be unreasonably withheld.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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            7.4 [*]

      8. Limitation of Liability. TO THE MAXIMUM EXTENT PERMITTED BY APPLICABLE
LAW, NEITHER PARTY SHALL BE LIABLE FOR ANY LOST PROFITS OR COSTS OF PROCUREMENT
OF SUBSTITUTE GOODS OR SERVICES, OR FOR ANY INDIRECT, SPECIAL, INCIDENTAL OR
CONSEQUENTIAL DAMAGES, INCLUDING DAMAGES FOR LOST DATA, HOWEVER CAUSED AND UNDER
ANY THEORY OF LIABILITY, INCLUDING BUT NOT LIMITED TO CONTRACT, PRODUCTS
LIABILITY, STRICT LIABILITY AND NEGLIGENCE, AND WHETHER OR NOT IT WAS OR SHOULD
HAVE BEEN AWARE OR ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. THESE LIMITATIONS
SHALL APPLY NOTWITHSTANDING ANY FAILURE OF ESSENTIAL PURPOSE OF ANY LIMITED
REMEDY. THIS SECTION SHALL NOT APPLY TO EITHER PARTY'S (A) ABILITY TO OBTAIN
INJUNCTIVE OR OTHER EQUITABLE RELIEF; (B) CONFIDENTIALITY OBLIGATIONS UNDER
SECTION 6; AND (C) OBLIGATIONS UNDER SECTION 3.1.

      9. Term and Termination.

            9.1. Term. The term of this Agreement (the "Term") shall commence on
the Effective Date and shall continue in force for three (3) years or until the
termination of the last Service. The parties may agree to renew the Agreement on
mutually agreed upon terms.

            9.2. Termination for Breach. In addition to any other rights and/or
remedies that either party may have under the circumstances, all of which are
expressly reserved, either party may suspend performance of and/or terminate
this Agreement if (i) the other party materially breaches any term or condition
of this Agreement and fails to cure such breach within thirty (30) days after
receiving written notice of the breach, or (ii) either party is in material
breach of Section 6.1.

            9.3. Termination due to Insolvency. Either party may suspend
performance and/or terminate this Agreement if the other party becomes insolvent
or makes any assignment for the benefit of creditors or similar transfer
evidencing insolvency, or suffers or permits the commencement of any form of
insolvency or receivership proceeding, or has any petition under bankruptcy law
filed against it, which petition is not dismissed within sixty (60) days of such
filing, or has a trustee or receiver appointed for its business or assets or any
party thereof.

            9.4. Termination Without Cause. Upon ninety (90) days prior written
notice to Inktomi, Customer may terminate this Agreement in its entirety without
cause provided Customer has paid the annual minimum total Per Search Query
Service Fee set forth in Schedule 2 of this Agreement [*]. In addition, if

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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Customer no longer wishes to receive either the General Search Services or the
Site Search Services, upon ninety (90) days prior written notice to Inktomi,
Customer may terminate such portions of this Agreement that relate to the
General Search Services or the Site Search Services, as the case may be provided
Customer has paid the minimum total Per Search Query Service Fee set forth in
Schedule 2 of this Agreement [*]; provided, that if Customer elects to terminate
the Site Search Services portion of this Agreement, Customer shall have no
further obligation to pay monthly service fees following the date of such
termination.

            9.5. Effect of Termination. Upon the termination of this Agreement
for any reason: (i) all license rights granted under this Agreement shall
terminate; (ii) Customer shall immediately pay to Inktomi all amounts due and
outstanding as of the date of such termination; and (iii) each party shall
return to the other party, or destroy and certify the destruction of, all
Confidential Information of the other party.

            9.6. Survival. In the event of any termination or expiration of this
Agreement for any reason, Sections 1, 3, 4, 5.2, 6, 7, 8, 9, 10 and 11 shall
survive termination or expiration of this Agreement. Neither party shall be
liable to the other party for damages or equitable remedies of any sort
resulting solely from terminating this Agreement in accordance with its terms.

            9.7. Remedies. Each party acknowledges that its breach of the
confidentiality or service/license restrictions contained herein may cause
irreparable harm to the other party, the extent of which would be difficult to
ascertain. Accordingly, each party agrees that, in addition to any other
remedies to which the non-breaching party may be legally entitled, the
non-breaching party shall have the right to seek immediately injunctive relief
in the event of a breach of such confidentiality or service/license restrictions
by the other party or any of its officers, employees, consultants or other
agents.

            9.8. If Inktomi is in material breach of this Agreement, then, in
addition to any other remedies which Customer may have under the circumstances,
Customer will have the right to withhold payment of amounts otherwise owed by
Customer to Inktomi pursuant to this Agreement; provided, however, that Customer
shall give Inktomi not less than forty-five (45) days to cure such breach prior
withholding any such payments.

      10. Miscellaneous.

            10.1. Understanding. Each party acknowledges that it has read this
Agreement, understands it and agrees to be bound by it. Each party acknowledges
that it has not been induced to enter into such agreements by any
representations or statements, oral or written, not expressly contained herein
or expressly incorporated by reference.

            10.2. Notice. Any notice required for or permitted by this Agreement
shall be in writing and shall be delivered as follows with notice deemed given
as indicated: (i) by personal delivery when delivered personally; (ii) by
overnight courier upon written verification of receipt; (iii) by telecopy or
facsimile transmission when confirmed by telecopier or facsimile transmission
report; or (iv) by certified or registered mail, return receipt requested, upon
verification of receipt. All notices to Inktomi must be sent to the addresses
first described above or to such other address that Inktomi may have provided
for the purpose of notice in accordance with this Section. All notices to
Customer must be sent to: Microsoft Corporation, One Microsoft

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

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Way, Redmond, WA 98052, Attention:MSN Search manager, fax: (425) 936-7329, with
a copy to: Microsoft Corporation, Law and Corporate Affairs, fax: (425)
936-7409, or to such other address that Customer may have provided for the
purpose of notice in accordance with this Section.

            10.3. Assignment. Neither party may assign its rights or delegate
its obligations under this Agreement without the other party's prior written
consent, except (i) to the surviving entity in a merger or consolidation in
which it participates or to a purchaser of all or substantially all of its
assets, so long as such surviving entity or purchaser shall expressly assume in
writing the performance of all of the terms of this Agreement, or (ii) in the
case of Customer, to the Microsoft business unit responsible for MSN and/or MSN
Search, in the event such unit becomes a separate legal entity, or to the
purchaser of all or substantially all of the assets of the Microsoft business
unit responsible for MSN and/or MSN Search.

            10.4. No Third Party Beneficiaries. All rights and obligations of
the parties hereunder are personal to the party that holds the rights or has the
obligation. Except as otherwise specifically stated herein, this Agreement is
not intended to benefit, nor shall it be deemed to give rise to, any rights in
any third party.

            10.5. Governing Law. This Agreement will be governed and construed,
to the extent applicable, in accordance with United States law, and otherwise,
in accordance with Washington law, without regard to its conflict of law
principles. In any action or suit to enforce any right or remedy under this
Agreement the prevailing party shall be entitled to recover its reasonable
attorneys' fees and costs.

            10.6. Independent Contractors. The parties are independent
contractors. Neither party shall be deemed to be an employee, agent, partner or
legal representative of the other for any purpose and neither shall have any
right, power or authority to create any obligation or responsibility on behalf
of the other.

            10.7. Force Majeure. Neither party shall be liable hereunder by
reason of any failure or delay in the performance of its obligations hereunder
(except for the payment of money) on account of strikes, shortages, riots,
insurrection, fires, flood, storm, explosions, earthquakes, telecommunications
outages, acts of God, war, governmental action, or any other cause which is
beyond the reasonable control of such party.

            10.8. Compliance with Laws and Export Regulations. Each party shall
be responsible for compliance with all applicable laws, rules and regulations,
if any, related to the performance of its obligations under this Agreement.
Customer acknowledges that Inktomi is not the originator or exporter of any
information the Services return as the result of queries submitted by any user
of Customer's system. Customer is responsible for ensuring that the export of
any information provided by the Services is exported in accordance with all
applicable U.S. laws and regulations, including U.S. export control laws.
Additionally, Customer acknowledges that Inktomi is not the exporter of any
products or information sold by Customer through the Services. Customer is
responsible for ensuring that the export of any products facilitated for sale
through the Services are exported in accordance with all applicable U.S. laws
and regulations, including U.S. export control laws. Customer agrees to provide
adequate safeguards including on line disclaimers on Customer's site to ensure
compliance with these provisions.

            10.9. Waiver. The failure of either party to require performance by
the other party of any provision shall not affect the full right to require such
performance at any time

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thereafter; nor shall the waiver by either party of a breach of any provision
hereof be taken or held to be a waiver of the provision itself.

            10.10. Conflicts. In the event of a conflict between the terms of
this Agreement and an Exhibit attached hereto, the terms of the Exhibit shall
prevail.

            10.11. Severability. If any provision of this Agreement is held by a
court of competent jurisdiction to be contrary to law, the parties agree that
such provision shall be changed and interpreted so as to best accomplish the
objectives of the original provision to the fullest extent allowed by law and
the remaining provisions of this Agreement shall remain in full force and
effect.

            10.12. Headings. The section headings appearing in this Agreement
are inserted only as a matter of convenience and in no way define, limit,
construe or describe the scope or extent of such paragraph, or in any way affect
such agreements.

            10.13. Counterparts. This Agreement may be executed simultaneously
in two or more counterparts, each of which will be considered an original, but
all of which together will constitute one and the same instrument.

            10.14. Entire Agreement. This Agreement, Exhibits, Attachments and
Schedules hereto, constitute the entire agreement between the parties with
respect to the subject matter hereof. This Agreement supersedes, and the terms
of this Agreement govern, any other prior or collateral agreements with respect
to the subject matter hereof. Any amendments to this Agreement must be in
writing and executed by an officer or other duly authorized representative of
the parties.

      IN WITNESS WHEREOF, the parties have caused this Portal Services Agreement
to be signed by their duly authorized representatives.

MICROSOFT CORPORATION               INKTOMI CORPORATION

By: /s/ Brad Chase                        By: /s/ Jerry Kennelly
   ---------------------------------         ---------------------------------

Name: Brad Chase                          Name: Jerry Kennelly
     -------------------------------           -------------------------------

Title: Vice-President                     Title: Chief Financial Officer
      ------------------------------            ------------------------------

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                                   EXHIBIT A-1
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                             GENERAL SEARCH SERVICES

This Exhibit to the Portal Services Agreement (this "Exhibit"), in conjunction
with the terms of the Portal Services Agreement (the "Agreement") shall
constitute the terms and conditions pursuant to which Inktomi shall provide
General Search Services to Customer at the Site set forth above:

      1. Definitions. In addition to any terms defined in this Exhibit, the
following terms shall have the meanings set forth below. Any other terms not
otherwise defined in this Exhibit shall have the meanings prescribed to them in
the Agreement.

      1.1. "Database" means Inktomi's full text index database of Web pages
accessible by end users of the Site and end users of other Inktomi customers at
any given time.

      1.2. "General Search Database" is the database maintained as part of the
General Search Services described on Attachment A to this Exhibit. The General
Search Database shall at no time be less comprehensive than the Database.

      1.3 "General Search Services" means the Internet Search Engine services
and related support services to be provided by Inktomi for Customer under this
Exhibit, as more fully described on Attachment A to this Exhibit and Schedule 1
to the Agreement.

      1.4 "Inktomi Data Protocol" means the written specification on how an
Interface communicates and interacts with the Inktomi Search Engine.

      1.5 "Inktomi Search Engine" means Inktomi's current Search Engine as of
the Effective Date. The Inktomi Search Engine does not and will not include
features, options and modules developed and customized specifically for third
parties and provided to such third parties on an exclusive basis, or features,
options, modules and future products which Inktomi licenses or provides
separately; however, the Inktomi Search Engine will include all upgrades,
updates, successor versions, replacement versions and new releases thereto which
Inktomi makes generally available at no additional fees.

      1.6 "Inktomi Technology" means the Inktomi Search Engine, the Inktomi Data
Protocol, the Interface Construction Tools and all other computer software,
technology and/or documentation which is supplied by Inktomi for use in or in
connection with delivery of the General Search Services, including, without
limitation, all source code and object code therefor and all algorithms, ideas
and Intellectual Property Rights therein, including upgrades, updates, successor
versions, replacement versions and new releases thereof.

      1.7 "Interface" means the editorial and graphical content, and
functionality (which is not otherwise Inktomi Technology hereunder), of the Web
and other pages served to end users of Customer, including without limitation
all Search Pages, Inktomi Results Pages, instruction pages, frequently asked
questions pages and any site end user terms and guidelines.

                                      A1-1
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      1.8 "Interface Construction Tools" means all software tools, if any, in
object code form, provided by Inktomi to assist Customer to build the Interface
to the Inktomi Search Engine, including without limitation Inktomi's application
server currently known as Forge.

      1.9 "Results Pages" means all Web pages displaying search results
presented to end-users directly as a result of accessing the query mechanisms of
the Inktomi Search Engine or indirectly through a cache controlled or influenced
by Customer.

      1.10 "Results Set" means a set of results consisting of between zero and
one hundred unique records presented (either directly from the Inktomi Search
Engine or indirectly through a cache controlled or influenced by Customer) in
response to a search query.

      1.11 "Search Engine" means computer software which crawls the Internet,
downloads and analyzes text and other data, sorts and organizes the data,
creates an index of accessible data, and, after receiving a particular search
request (in the form of a word query), locates material accessible in the
database, and presents the results of the search.

      1.10 "Search Pages" means all Web pages which enable end users of the Site
to initiate and send search queries to the Inktomi Search Engine.

      1.11 "Inktomi Search Result Data" means the proprietary search result data
(consisting of URLs, corresponding Web site descriptions, and corresponding
numerical relevancy rankings among the individual search results provided by
Inktomi) associated with specific queries that is provided by Inktomi to
Customer for serving and display to end users of the Customer Services as part
of the search results delivered in response to such end users' search queries.

      1.12 Microsoft Query Default State - [*]

      2. Provision of General Search Services; Site Implementation.

            2.1. General Search Services and Site Implementation. Subject to the
terms and conditions of this Exhibit and the Agreement, Inktomi shall provide
the General Search Services to Customer for use in the Site or in other Customer
applications, such services to be provided in accordance with the functionality
specifications, performance criteria and limitations specified on Attachment A
to this Exhibit and Schedule 1 to the Agreement. Inktomi, at its own expense,
shall provide all data transmission capacity (bandwidth), disk storage, server
capacity and other hardware and software required to run the Inktomi Search
Engine and maintain the Database. Customer, at its election and at its own
expense, shall create one or more Interface(s) to the Inktomi Search Engine for
the Site, and shall provide all disk storage, server capacity and other hardware
and software required to run and maintain the Site and the Interface(s), and to
serve advertisements on the Interface(s). Inktomi shall provide reasonable

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                    AA1-2
<PAGE>
assistance (through telephone, e-mail, the Web, or fax) to Customer during
regular business hours regarding development of the Interface and integration of
the same with the Inktomi Search Engine. Customer, at its own expense, shall
provide all data transmission capacity (bandwidth) required to connect to and
receive information from the Inktomi Search Engine. Customer may only utilize
the General Search Services in conjunction with search services provided by
Customer to end users of the Site[s] or as otherwise permitted in this
Agreement. Customer may cache Results Sets and other information obtained from
the Inktomi databases; provided, that if Customer wishes to begin such caching,
Inktomi and Customer will first agree on appropriate Customer reporting
requirements to ensure proper accounting of payments hereunder.

            2.2. Test Cluster. During the development period for the Interface,
Customer shall only have access through the Inktomi Data Protocol to a
non-production version of the Inktomi Search Engine (the "Test Cluster"). Upon
completion of the Interface and all desired testing against the Test Cluster,
Customer shall present the Interface to Inktomi for review and testing against
the production version of the Inktomi Search Engine. Inktomi shall promptly
notify Customer of any problems or issues discovered by Inktomi regarding the
Interface. Once cleared by Inktomi, Inktomi shall provide access to Customer to
the production version of the Inktomi Search Engine. Customer may run reasonable
tests against the Test Cluster and the production version of the Inktomi Search
Engine, provided however that Customer may not conduct any load testing (prior
to commercial launch of its search service) without the prior consent of
Inktomi. There shall no service fee payable by Customer for searches run against
the Test Cluster. Additional test support requirements for routine and
non-routine testing are itemized in Schedule 1 of the Agreement.

            2.3. Delivery of Materials. Promptly following execution of this
Exhibit, Inktomi shall provide the Inktomi Data Protocol and the Interface
Construction Tools to Customer, which Customer may use solely in strict
compliance with the terms of Section 4.

            2.4. Technical Support. Inktomi, at its own expense, shall provide
technical support services to Customer regarding the operation of the Inktomi
Search Engine and the General Search Services. Such support services will be
provided as set forth on Schedule 1 of the Agreement.

      3. Customer Obligations.

            3.1. Technical Support. Except as set forth in Section 2.4 and
Schedule 1 of the Agreement, Customer at its own expense shall provide all
support including, without limitation, first level customer support services to
end-users of the Site.

      4. Intellectual Property Licenses/Ownership.

            4.1. Inktomi Data Protocol. Inktomi grants to Customer a
nontransferable, nonexclusive license during the Term (as defined below) to use
the Inktomi Data Protocol and the Interface Construction Tools solely to create
and maintain the Interface to the Inktomi Search Engine for the Site. The
license granted hereunder shall include the right to use the Interface
Construction Tools or to develop an Interface to the Inktomi Search Engine for
use on the Sites.

            4.2. Interface. As between Inktomi and Customer, Inktomi
acknowledges that Customer owns all right, title and interest, including without
limitation all Intellectual Property Rights, in and to the Interface (except for
any software licensed by third parties to Customer and except for editorial
content regarding the use and functionality of the Inktomi Search Engine
provided by Inktomi to

                                     AA1-3
<PAGE>
Customer for incorporation into the Site, which content shall be and remain
Inktomi Technology), and that Inktomi shall not acquire any right, title or
interest in or to the Interface.

            4.3 Inktomi Search Results Data. As between Customer and Inktomi,
Customer acknowledges and agrees that Inktomi owns all right, title and interest
in and to the Inktomi Search Result Data, including without limitation any and
all Intellectual Property Rights therein, and that Customer shall not acquire
any right, title or interest in or to the Inktomi Search Result Data, except as
expressly set forth in this Agreement. Inktomi hereby grants to Customer a
worldwide, nontransferrable, nonsublicensable, nonexclusive license to use,
reproduce, reformat, publicly perform, and publicly display the Inktomi Search
Result Data for the limited purposes of (1) serving and displaying such Inktomi
Search Result Data to end users of the Customer Services as part of the search
results delivered in response to such end users' search queries, (2) for
Customer's internal research and review and (3) in Customer's ad sales
activities; and except as may be required to fulfill such limited purpose,
Customer shall not use, reproduce, modify, adapt, prepare derivative works from,
distribute, resell, provide or disclose to any third party any Inktomi Search
Result Data, alone or in combination with other data, without the express prior
written consent of Inktomi.

            4.4 Other Data. Any and all other data relating to or arising from
use of the General Search Services ("Other Data") shall be owned by Customer,
including any and all Intellectual Property Rights therein, and Inktomi shall
not acquire any right, title or interest in or to such other data. Inktomi shall
make no use of such other data except as expressly authorized in writing by
Customer. Notwithstanding anything to the contrary, however, any data generated
by operation of the Inktomi Search Engine in connection with the search services
and collected by Inktomi may be used for internal research and review and
marketing only and shall not be shared or otherwise disclosed to third parties
in any manner except in aggregated form only.

      5. Payments.

            5.1. Service Fees. Customer shall pay Inktomi service fees for the
General Search Services in the amount and on terms specified on Schedule 2 of
the Agreement.

            5.2. Records. For purposes of fulfilling its obligations under this
Section 5.2, Customer shall keep complete and accurate records as set forth in
Section 5 of the Agreement.

                                     AA1-4
<PAGE>
IN WITNESS WHEREOF, the parties have caused this Exhibit to the Agreement to be
signed by their duly authorized representatives.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By:                                       By:
   ---------------------------------         ---------------------------------

Name:                                     Name:
     -------------------------------           -------------------------------

Title:                                    Title:
      ------------------------------            ------------------------------

                                     AA1-5
<PAGE>
                                  ATTACHMENT A
                                       TO
                                   EXHIBIT A-1
                             GENERAL SEARCH SERVICES

Capitalized terms not otherwise defined in this Attachment shall have the
meanings prescribed to them in the corresponding Exhibit to which this
Attachment is attached or the Portal Services Agreement to which such Exhibit
and Attachment are attached.

General Search Services

      Inktomi will use the Inktomi Search Engine and its own editorial
discretion to crawl the Internet, download and analyze text and other data, sort
and organize the data, create an index of accessible data, and, after receiving
a particular search request from Customer's end user (in the form of a word
query), locate material accessible in the General Search Database, and provide
the results of the search to Customer for presentation to it's end user. Inktomi
will serve end user search queries out of one or more of its search engine data
centers at Inktomi's discretion provided these search engine data centers
reflect Customer's AddURL submissions, meet the specifications and support
levels provided for in this Agreement and include a dedicated communications
link as currently exists. Should Inktomi in its discretion elect to serve end
user queries out of one or more of such data center, the parties will, prior to
such serving of end user queries, mutually agree upon a network connectivity
solution. Notwithstanding, upon 30 days prior notice to Inktomi by Customer,
Inktomi will serve end user search queries out of any its search engine data
centers requested by Customer, provided that Inktomi has sufficient capacity in
such data centers. The functionality specifications and performance criteria
applicable to such General Search Services are as follows:

      General Search Services Functionality Specifications:

      Inktomi will operate the Inktomi Search Engine so as to enable end users
of the Site to run queries against the General Search Database with the
following functionality:

[*]

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                     AA1-1
<PAGE>
      [*]

      General Search Services Performance Criteria

      -     Size of Database        -     Minimum of [*] million documents will
                                          be available for all daily queries. In
                                          addition, Customer will have access to
                                          any other Inktomi databases on the
                                          same terms that Inktomi makes
                                          available to other customers pursuant
                                          to an agreement with Inktomi similar
                                          to Customer's Agreement for similar
                                          services as those described
                                          herein.

      -     General Search Database       The General Search Database will be
            Freshness                     updated a minimum of [*] times per
                                          year (approximately every [*] weeks,
                                          which may vary depending on
                                          operational circumstances) with a goal
                                          of [*] times per year. Other worldwide
                                          databases accessed by Customer will be
                                          updated with similar frequency (e.g.,
                                          the [*] database will be updated a
                                          minimum of [*] times per year or
                                          approximately every [*] weeks
                                          depending upon operational
                                          circumstances).

      -     Uptime/Downtime         -     Minimum [*]% uptime ([*]% downtime)
                                          over monthly windows with a goal of
                                          [*]% uptime. Downtime = any [*] minute
                                          period in which Inktomi Search Engine
                                          processes no requests.

      -     Query/Response Speed    -     For any two word query (Boolean And),
                                          the average time to return results to
                                          the Yukon client is no more than [*]
                                          seconds on average and is less than
                                          [*] second for [*]% of the queries.
                                          The average overall query response
                                          time goal shall be less than or equal
                                          to [*] milliseconds and the average
                                          maximum response time goal shall not
                                          exceed [*] milliseconds. The query
                                          response time goals shall be based
                                          upon the Microsoft Default Query
                                          State.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>
      -     Query Capacity                Inktomi will provision the General Web
                                          Search Service according to Customer's
                                          historic query volume growth rates,
                                          provided that Customer shall give
                                          Inktomi at least ninety (90) days
                                          advance notice of any forecasted
                                          increase in queries from one month to
                                          another that exceeds the prior month's
                                          queries by [*] ([*]) percent or
                                          more.

      AddURL Submissions functionality and performance criteria

      [*]

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>
      [*]

Production Schedule

      Customer will begin work on constructing the Interface, and Inktomi will
begin work on tuning its Search Engine to provide the services set forth herein
promptly upon execution of the Exhibit. Both parties will use commercially
reasonable efforts so that the General Search Services are available to Customer
for use in the Site within ninety (90) days following the Effective Date.

LINGUISTICS & INTERNATIONAL SUPPORT

[*]

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.
<PAGE>

[*]

CRAWL BREADTH PER INTERNATIONAL MARKET

[*]

*    Certain information on this page has been omitted and filed separately,
     with the commission. Confidential treatment has been requested with respect
     to the omitted portions.
<PAGE>
                                   SCHEDULE 1
                                     TO THE
                            PORTAL SERVICES AGREEMENT

                             SUPPORT GUIDELINES FOR
                                 SEARCH SERVICES

1.    Definitions.

      (a)   Hours of Operation. Inktomi will provide Customer with 7 x 24
            support as set forth herein.

      (b)   Problem. Any error, bug, or malfunction that makes any feature of
            the Inktomi Search Engine perform unpredictably or to otherwise
            become intermittently unavailable, or that causes the Inktomi Search
            Engine to have a material degradation in response time performance.

      (c)   Severe Problem. Any error, bug, or malfunction that causes the
            Inktomi Search Engine to become inaccessible to Customer and its
            Site end users, or that causes any feature of the Inktomi Search
            Engine to become continuously unavailable.

      (d)   Enhancement Request. A request by Customer to incorporate a new
            feature or enhance an existing feature of the Inktomi Search Engine.

      (e)   Fix. A correction, fix, alteration or workaround that solves a
            Problem or a Severe Problem.

2.    Contact points.

      (a)   Customer Technical Support Personnel. Customer will designate
            certain Customer employees and executive escalation personnel as
            qualified to contact Inktomi for technical support. Customer will
            designate a liaison for centralized project coordination purposes.
            Customer may change its designated Technical Support Personnel and
            executive escalation personnel at its discretion with reasonable
            notice to Inktomi.

      (b)   Inktomi Technical Support Personnel. Inktomi will ensure that its
            Technical Support Personnel are adequately trained to provide
            technical support to Customer. Inktomi will designate a liaison for
            centralized project coordination purposes. Inktomi will provide
            Customer with a web interface or an email address (the "Support
            Address"), as well as an email pager address (the "Support Pager")
            for contacting the Inktomi Technical Support Personnel no later than
            one week prior to the Launch Date. Inktomi will also provide
            Customer with contact information for executive escalation personnel
            no later than one week prior to the Launch Date. Inktomi may change
            its designated Technical Support Personnel and executive escalation
            personnel at its discretion with reasonable notice to Customer.

3.    Support procedures.

                                      S1-1
<PAGE>
      (a)   All Problems reported by Customer Technical Support Personnel to
            Inktomi must be submitted via web site or email to the Support
            Address.

      (b)   If Customer believes it is reporting a Severe Problem, Customer will
            accompany its email request with a page via the Support Pager.

      (c)   Upon receiving a report from Customer, Inktomi will respond to the
            request and use reasonable commercial efforts to provide a Fix as
            described in the support table set forth below.

      (d)   Inktomi will use commercially reasonable efforts to inform Customer
            Technical Support Personnel of Fixes.

4.    Support levels.

      (a)   Customer will provide technical support to end users of the Sites
            who email or otherwise contact Customer directly with questions
            about the Sites. Customer will use its commercially reasonable
            efforts to Fix any Problems without escalation to Inktomi.

      (b)   Inktomi will provide the following technical support solely to
            Customer Technical Support Personnel:

<TABLE>
<CAPTION>
RECEIPT OF REQUEST   TYPE OF   TARGET RESPONSE     TARGET FIX TIME AND REPORTING
                     REQUEST   TIME FROM RECEIPT
<S>                  <C>       <C>                 <C>
[*]                  [*]       [*]                 [*]

[*]                  [*]       [*]                 [*]

[*]                  [*]       [*]                 [*]
</TABLE>

      (c)   In the event Inktomi does not respond to Customer within the target
            response time from email receipt set forth above, then Customer may
            contact the following Inktomi executive escalation personnel in
            order:

            Darryl Rosen           -              Liason

            Steve Crusenberry      -              Search Engine Technical
                                                  Operations

            Troy Toman             -              Director of Partner Services

            Dick Pierce            -              Vice President Marketing

            David Peter Schmidt    -              CEO

      (c)   All problems reported by customer will be given a "fix by" date
            estimate by Inktomi as to when the problem will be resolved and
            deployed (if deployment is required).

      (d)   Customer will be given access to the Inktomi problem tracking system
            and defect (bug) tracking system for all problems and bugs that
            affect Customer. These systems will be monitored by Inktomi [*].

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      S1-2
<PAGE>
      (e)   Inktomi and Exodus will monitor the search cluster and the leased
            line and will provide a status to Customer on demand. Inktomi will
            provide a mechanism that alerts the Customer (via a pager and email)
            within [*] seconds of any partial or complete outages.

      (f)   Inktomi will notify Customer within [*] minutes (via an alert page
            and email) of the FTP Site, site search feed & crawl process, crawl
            reports, and other related processes becoming inoperable. Customer
            will use Inktomi web support tracking system to report problems with
            these services when discovered by Customer.

      (g)   Inktomi will provide Customer with [*] hours advance notice of
            scheduled maintenance outage and will maintain published scheduled
            maintenance windows.

      (h)   Inktomi will provide MS with [*]-hour turn-around in removing
            domains, which clone, spam, hijack or misappropriate MS URLs, with a
            goal of [*]-hour turn-around.

5.    Periodic Reviews and Upgrades

      (a)   Inktomi will arrange and hold weekly status calls and quarterly
            operations reviews with Customer.

      (b)   Customer will be given the opportunity to perform early review and
            provide comment on Inktomi's search roadmap.

      (c)   Customer will be given access to Inktomi's detailed feature lists.
            Inktomi will make commercially reasonable efforts to work with
            Customer to launch new product releases, enhancements, and fixes of
            the Inktomi Technology with minimal disruption to Customer. Such
            efforts may include the review of proposed features, changes in
            search operations, and proposed test plans.

      (d)   Inktomi will provide a minimum of [*] days notice to Customer of any
            upgrade or new release of the Services. Any change which could
            potentially impact the Customer's Site Search service must be
            approved by Customer prior to such change occurring except for
            critical bug fixes or activity required of Inktomi to meet its
            obligations under this Agreement.

6.    Test Support

      (a)   Inktomi will provide test access to Customer for any new cluster or
            software that Inktomi plans to use for serving Customer's queries.
            Testing procedures will be mutually agreed to by the parties and
            will be designed to replicate expected traffic conditions. Customer
            will not incur any per query charges for performing these queries.

      (b)   Customer may periodically run higher than normal load testing on
            standard search clusters during non-peak hours with Inktomi's prior
            consent. Specific test parameters, including load and timing, will
            be mutually agreed to by the parties on a per event basis. Customer
            will not incur any per query charges for performing these queries.

      (c)   Routine test queries - Inktomi will permit Customer to run routine
            non-high load stress tests [*] against the main index at any time
            without prior approval. Customer will incur per query charges in the
            event these routine test queries exceed [*]% of total monthly
            queries.

      (d)   Inktomi will provide Customer with a separate client ID to track
            test queries performed under 6 (a) and (b) above.

      (e)   Customer may request engineering versions of search code which can
            be tested against the test search cluster.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      S1-3
<PAGE>
7.    General Reporting

      (a)   Inktomi will provide weekly status reports that include information
            regarding crawl rates, service uptime, and operations problem
            summaries including time, duration, and description of problem.

                                      S1-4
<PAGE>
                                   SCHEDULE 2
                                     TO THE
                            PORTAL SERVICES AGREEMENT

                                  SERVICE FEES

       1. Site Search Information Service Fee. Customer shall pay Inktomi a base
information services fee of $[*] per year for provisioning of the Site Search
Services as set forth in Exhibit A-2. For the first year under the Agreement,
the base information services fee shall be paid as follows: twelve (12) equal
monthly installments on the last day of each month. For subsequent years, the
base information service fee shall be paid in equal monthly installments on the
last day of each month.

       2. Supplementary Site Search Information Service Fee. In addition to the
fees set forth above, Customer shall pay Inktomi a Supplementary Site Search
Information Service Fee of $[*] annually for the failover solution provided as
part of the Site Search Services as set forth in Exhibit A-2. For the first year
under the Agreement, the base Supplemental Site Search Information Services Fee
shall be paid as follows: twelve (12) equal monthly installments on the last day
of each month. For subsequent years the Supplemental Site Search Information
Services Fee shall be invoiced in equal monthly installments on the last day of
each month.

       3. Site Search Capacity Expansion Fee. In addition to the fees set forth
above, if Customer explicitly requests database capacity more than [*] Web pages
for its Site Search Services, then Customer shall pay Inktomi a capacity
expansion fee of $[*] per year for each additional [*] Web pages. The Capacity
Expansion Fee shall be added to and paid as part of the Site Search Information
Services Fee set forth above.

       4. Per Search Query Service Fee. In addition to the information service
fees set forth above, Customer shall pay Inktomi monthly per-query service fees
based on the total number of Results Sets served for General Search Services and
Site Search Services on a monthly basis. These fees equal:

      (A)   the total number of Results Sets served during the month divided by
            the total number of days in such month ("Average Daily Results Sets
            Served"),

      (B)   multiplied and added in accordance with the following graduated
            schedule

            For the first [*] million Average Daily
              Results Sets Served                   $[*] per Results Sets Served

            For the next [*] million Average Daily
              Results Sets Served                   $[*] per Results Sets Served

            For any additional Average Daily
              Results Sets Served                   $[*] per Results Sets Served

      (C)   multiplied by the total number of days in such month.

      (D)   multiplied by [*]% to reflect the [*]% test query volume specified
            in 6.(c) of Schedule 1 to the Portal Services Agreement.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      S2-1
<PAGE>
      3. All Services. The service fees set forth above are for General Search
Services and Site Search Services provided by Inktomi as such Services are
contemplated in the applicable Exhibit. If Inktomi and Customer mutually agree
to modify any of the Services, additional charges may apply. Monthly service
fees shall be paid within thirty (30) calendar days of receiving an invoice from
Inktomi as provided in the Portal Service Agreement.

      The annual minimum Per Search Query Service Fees payable by Customer shall
be $[*] in the first year of the Term, $[*] in the second year of the Term, and
$[*] in the third year of the Term.

       4. Notwithstanding any other provision of this Agreement, Customer shall
have no obligation to use the Services, or to limit the frequency or number of
search results on any given Web page in the Site[s]. Inktomi acknowledges and
agrees that it is not entitled to any share in any revenue derived by Customer
from the Site[s], regardless of how derived, and that except as may be expressly
provided otherwise in this Agreement (or by subsequent mutual agreement of the
parties) the service fees payable (if any) under this Schedule will be the only
payments required to be made to Inktomi for or in consideration of the rights
granted to Customer hereunder, the Services and all results and proceeds
thereof. Nothing in this Agreement will be construed as restricting Customer's
ability to acquire, license, develop, manufacture, use or distribute for itself,
or have others acquire, license, develop, manufacture, use or distribute for,
similar technology performing the same or similar functions as the technology
contemplated by this Agreement, or to market, use and distribute such similar
technology in addition to, or in lieu of, the technology contemplated by this
Agreement.

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      S2-2
<PAGE>
                                   EXHIBIT A-2
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                              SITE SEARCH SERVICES

This Exhibit to the Portal Services Agreement (this "Exhibit"), in conjunction
with the terms of the Portal Services Agreement (the "Agreement") shall
constitute the terms and conditions pursuant to which Inktomi shall provide Site
Search Services to the Site set forth above:

      1. Definitions. In addition to any terms defined in this Exhibit, the
following terms shall have the meanings set forth below. Any other terms not
otherwise defined in this Exhibit shall have the meanings prescribed to them in
the Agreement.

            1.1. "Inktomi Data Protocol" means the written specification on how
an Interface communicates and interacts with the Inktomi Search Engine.

            1.2. "Inktomi Search Engine" means Inktomi's current Search Engine
as of the Effective Date. The Inktomi Search Engine does not and will not
include features, options and modules developed and customized specifically for
third parties and provided to such third parties on an exclusive basis, or
features, options, modules and future products which Inktomi licenses or
provides separately; however, the Inktomi Search Engine will include all
upgrades, updates, successor versions, replacement versions and new releases
which Inktomi makes generally available at no additional fees.

            1.3. "Inktomi Technology" means the Inktomi Search Engine, the
Inktomi Data Protocol, the Interface Construction Tools and all other computer
software, technology and/or documentation which is supplied by Inktomi for use
in or in connection with delivery of the Site Search Service, including without
limitation all source code and object code therefor and all algorithms, ideas
and Intellectual Property Rights therein, including upgrades, updates, successor
versions, replacement versions and new releases thereto.

            1.4. "Interface" means the editorial and graphical content and
design of the Web pages served to end users of the Site, including without
limitation all Search Pages, Results Pages, instruction pages, frequently asked
questions pages and any Site end user terms and guidelines.

            1.5. "Interface Construction Tools" means all software tools, if
any, in object code form, provided by Inktomi to assist Customer to build the
Interface to the Inktomi Search Engine, including without limitation Inktomi's
application server currently known as Forge.

            1.6. "Site Content Database" is a database maintained as part of the
Site Search Services described on Attachment A to this Exhibit.

            1.7. "Site Search Services" means the Internet Search Engine
services and related support services to be provided by Inktomi for Customer
under this Exhibit, as more fully described on Attachment A to this Exhibit and
Schedule 1 to the Agreement.

                                      A2-1
<PAGE>
            1.8. "Results Pages" means all Web pages displaying search results
presented to end-users directly as a result of accessing the query mechanisms of
the Inktomi Search Engine or indirectly through a cache controlled or influenced
by Customer.

            1.9 "Results Set" means a set of results consisting of between zero
and one hundred unique records presented (either directly from the Inktomi
Search Engine or indirectly through a cache controlled or influenced by
Customer) in response to a search query.

            1.10 "Search Engine" means computer software which crawls the
Internet, downloads and analyzes text and other data, sorts and organizes the
data, creates an index of accessible data, and, after receiving a particular
search request (in the form of a word query), locates material accessible in the
database, and presents the results of the search.

            1.10 "Search Pages" means all Web pages which enable end users of
the Site to initiate and send search queries to the Inktomi Search Engine.

            1.11 "Inktomi Search Result Data" means the proprietary search
result data (consisting of URLs, corresponding Web site descriptions, and
corresponding numerical relevancy rankings among the individual search results
provided by Inktomi) associated with specific queries that is provided by
Inktomi to Customer for serving and display to end users of the Customer
Services as part of the search results delivered in response to such end users'
search queries.

            1.12 Microsoft Query Default State - [*]

      2. Provision of Site Search Services; Site Implementation.

            2.1. Site Search Services and Site Implementation. Subject to the
terms and conditions of this Exhibit and the Agreement, Inktomi shall provide
the Site Search Services to Customer for use in the Site or in other Customer
applications, such services to be provided in accordance with the functionality
specifications and performance criteria specified on Attachment A to this
Exhibit and Schedule 1 to the Agreement. Inktomi, at its own expense, shall
provide all data transmission capacity (bandwidth), disk storage, server
capacity and other hardware and software required to run the Inktomi Search
Engine and maintain the Site Content Database. Customer, at its election and at
its own expense, shall create one or more Interface(s) to the Inktomi Search
Engine for the Site, and shall provide all disk storage, server capacity and
other hardware and software required to run and maintain the Site and the
Interface(s), and to serve advertisements on the Interface(s). Inktomi shall
provide reasonable assistance (through telephone, e-mail, the Web, or fax) to
Customer during regular business hours regarding development of the Interface
and integration of the same with the Inktomi Search Engine. Customer, at its own
expense, shall provide all data transmission capacity (bandwidth) required to
connect to and receive information from the Inktomi Search Engine. Customer may
only utilize the Site Search Services

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                      A2-2
<PAGE>
in conjunction with search services provided by Customer to end users of the
Site[s] or as otherwise permitted in this Agreement. Customer may cache Results
Sets and other information obtained from the Inktomi databases; provided, that
if Customer wishes to begin such caching, Inktomi and Customer will first agree
on appropriate Customer reporting requirements to ensure proper accounting of
payments hereunder.

            2.2. Test Cluster. During the development period for the Interface,
Customer shall only have access through the Inktomi Data Protocol to a
non-production version of the Inktomi Search Engine (the "Test Cluster"). Upon
completion of the Interface and all desired testing against the Test Cluster,
Customer shall present the Interface to Inktomi for review and testing against
the production version of the Inktomi Search Engine. Inktomi shall promptly
notify Customer of any problems or issues discovered by Inktomi regarding the
Interface. Once cleared by Inktomi, Inktomi shall provide access to Customer to
the production version of the Inktomi Search Engine. Customer may run reasonable
tests against the Test Cluster and the production version of the Inktomi Search
Engine, provided however that Customer may not conduct any load testing (prior
to commercial launch of its search service) without the prior consent of
Inktomi. There shall no service fee payable by Customer for searches run against
the Test Cluster. Additional test support requirements for routine and
non-routine testing are itemized in Schedule 1 of the Agreement.

            2.3. Delivery of Materials. Promptly following execution of this
Exhibit, Inktomi shall provide the Inktomi Data Protocol and the Interface
Construction Tools to Customer, which Customer may use solely in strict
compliance with the terms of Section 4.

            2.4. Technical Support. Inktomi, at its own expense, shall provide
technical support services to Customer regarding the operation of the Inktomi
Search Engine and Site Search Services. Such support services will be provided
as set forth on Schedule 1 of the Agreement.

      3. Customer Obligations.

            3.1. Technical Support. Except as set forth in Section 2.4 and
Schedule 1 of the Agreement, Customer at its own expense shall provide all
support including, without limitation, first level customer support services to
end-users of the Site.

      4. Intellectual Property Licenses/Ownership.

            4.1. Inktomi Data Protocol. Inktomi grants to Customer a
nontransferable, nonexclusive license during the Term (as defined below) to use
the Inktomi Data Protocol and the Interface Construction Tools solely to create
and maintain the Interface to the Inktomi Search Engine for the Site. The
license granted hereunder shall include the right to use the Interface
Construction Tools or to develop an Interface to the Inktomi Search Engine for
use on the Sites.

            4.2. Interface. As between Inktomi and Customer, Inktomi
acknowledges that Customer owns all right, title and interest, including without
limitation all Intellectual Property Rights, in and to the Interface (except for
any software licensed by third parties to Customer and except for editorial
content regarding the use and functionality of the Inktomi Search Engine
provided by Inktomi to Customer for incorporation into the Site, which content
shall be and remain Inktomi Technology), and that Inktomi shall not acquire any
right, title or interest in or to the Interface.

                                      A2-3
<PAGE>
            4.3 Inktomi Search Results Data. As between Customer and Inktomi, to
the extent that the Inktomi Search Results Data consists of Microsoft URLs
entirely, Inktomi acknowledges and agrees that Customer owns all right, title
and interest in and to the Inktomi Search Result Data and any and all other data
relating to or arising from use of the Site Search Services ("Other Data"),
including without limitation any and all Intellectual Property Rights therein,
and that Inktomi shall not acquire any right, title or interest in or to the
Inktomi Search Result Data, except as expressly set forth in this Agreement.
Except as may be required to fulfill the purpose of processing search queries
and serving and displaying search results, Inktomi shall not use, reproduce,
modify, adapt, prepare derivative works from, distribute, resell, provide or
disclose to any third party any Inktomi Search Result Data or any Other Data,
alone or in combination with other data, without the express prior written
consent of Customer. As between Customer and Inktomi, to the extent that that
the Inktomi Search Results Data consists in part or all of non-Microsoft URLs,
Customer acknowledges and agrees that Inktomi owns all right, title and interest
in and to the Inktomi Search Result Data, including without limitation any and
all Intellectual Property Rights therein, and that Customer shall not acquire
any right, title or interest in or to the Inktomi Search Result Data, except as
expressly set forth in this Agreement, except that Inktomi hereby grants to
Customer a worldwide, nontransferrable, nonsublicensable, nonexclusive license
to use, reproduce, reformat, publicly perform, and publicly display such data
for the limited purposes of (1) serving and displaying such data to end users of
the Customer Services as part of the search results delivered in response to
such end users' search queries, (2) for Customer's internal research and review
and (3) in Customer's ad sales activities. Notwithstanding anything to the
contrary, however, any data generated by operation of the Inktomi Search Engine
in connection with the search services and collected by Inktomi may be used for
internal research and review and marketing only and shall not be shared or
otherwise disclosed to third parties in any manner except in aggregated form
only.

      5. Payments.

            5.1. Service Fees. Customer shall pay Inktomi service fees for the
Site Search Services in the amount and on terms specified on Schedule 2 of the
Agreement.

            5.2 Records. For purposes of fulfilling its obligations under this
Section 5.2, Customer shall keep complete and accurate records as set forth in
Section 5 of the Agreement.

      IN WITNESS WHEREOF, the parties have caused this Exhibit to the Agreement
to be signed by their duly authorized representatives.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By:                                       By:
   ---------------------------------         ---------------------------------

Name:                                     Name:
     -------------------------------           -------------------------------

Title:                                    Title:
      ------------------------------            ------------------------------

                                      A2-4
<PAGE>
                                  ATTACHMENT A
                                       TO
                                   EXHIBIT A-2
                              SITE SEARCH SERVICES

Site Search Services:

      Inktomi will use the Inktomi Search Engine to crawl or otherwise access
the Site Content Databases, download and analyze text and other data, sort and
organize the data, create an index of accessible data, and, after receiving a
particular search request from an end user (in the form of a word query), locate
material accessible in the Site Content Database and present the results of the
search to the end user. The functionality and performance criteria applicable to
such services are as follows:

      1. Site Content Database Capacity. Inktomi will provision sufficient
hardware, software and other equipment that can provide query access to a Site
Content Database containing up to [*] Web pages. Customer may request
additional database capacity (i.e. query access to a Site Content Database
containing more Web pages), provided however that Customer shall pay the
Capacity Expansion Fee set forth on Schedule 2. Inktomi will upgrade capacity
within thirty (30) days of notification by Customer.

      2. Crawling and Indexing. Inktomi will use reasonable commercial efforts
to crawl or otherwise access and index up to [*] new and updated pages per hour
associated with the Site Content Databases. The Web pages included in the Site
Content Database shall be compiled by crawling URL lists to be added, deleted or
updated provided by Customer. The URL list will follow the URL List File Format
below. Inktomi will provide the same level of service for URLs to be deleted as
for URLs to be added. Specific requirements shall be as set forth below. Such
requirements may change from time to time upon mutual agreement of the parties.

            a. [*]

            b. [*]

            c. [*]

            d. File Types

                  [*]

* Certain information on this page has been omitted and filed separately with
the Commission. Confidential treatment has been requested with respect to the
omitted portions.

                                     AA2-1
<PAGE>
            e. [*]

            f. [*]

            g. [*]

      3. Queries. Inktomi will provision sufficient hardware, software and other
equipment to service up to [*] queries per day from Customer. Specific query
functionality shall be as set forth below.

            [*]

      4. Uptime/Downtime. The Inktomi Search Engine running the Site Search
Services will have a minimum uptime operation of [*]% (downtime of [*]%) over
monthly windows with a goal of

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to
 the omitted portions.

                                     AA2-2
<PAGE>
[*]% uptime. Downtime shall mean any one minute interval in which the Inktomi
Search Engine is unable to process search requests.

      5. Response Time. For any two word query (Boolean And) and additionally
restricted by DOMAIN:<site>, the average time to return results to the Yukon
client is no more than [*] seconds on average and is less than [*] second for
[*]% of the queries. The average overall query response time goal shall be less
than or equal to [*] milliseconds and the average maximum response time goal
shall not exceed [*] milliseconds. The query response time goals shall be based
upon the Microsoft Default Query State.

      6.    Document Tagging.  Microsoft will send Inktomi on a weekly basis
a list of URLs to be "tagged" allowing these URLs to be found when searching
on specific attributes.  Specific requirement for this have been outlined by
Inktomi in their [*].

            [*]

            Additional requirements are as follows:

            [*]

                  [*]

*Certain information on this page has been omitted and filed separately with
 the Commission. Confidential treatment has been requested with respect to
 the omitted portions.

                                     AA2-3
<PAGE>
                  [*]

      7. Reports

      [*]

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential treatment has been requested with respect to the
  omitted portions.

                                     AA2-4
<PAGE>
Production Schedule

      Customer will begin work on constructing the Interface and identifying the
Site Content Database and the URL List, and Inktomi will begin work on tuning
its Search Engine to provide the services set forth herein promptly upon
execution of this Agreement. Both parties will use commercially reasonable
efforts so that the Site Search Services are available to Customer for use in
the Site are available within ninety (90) days following the Effective Date.

                                     AA2-5
<PAGE>
                                  AMENDMENT ONE
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                                     BETWEEN
                         INKTOMI CORPORATION ("INKTOMI")
                                       AND
                       MICROSOFT CORPORATION ("CUSTOMER")

      WHEREAS Inktomi and Customer entered into the Portal Services Agreement
dated effective October 28, 1999 and any Exhibits, Attachments, and Schedules
thereto ("the Agreement");

      WHEREAS Inktomi and Customer desire to amend and clarify the Agreement;

      NOW, THEREFORE, Inktomi and Customer agree to the following with respect
to the Agreement:

      1) Delete Section 4(B) of Schedule 2 and replace with the following:

      "(B) multiplied and added m accordance with the following graduated
schedule

      For the first *
         Average Daily Results Sets Served      $* per Results Sets Served
      For the next *
         Average Daily Results Sets Served      $* per Results Sets Served
      For the next *
         Average Daily Results Sets Served      $* per Results Sets Served
      For the next * and all subsequent
         Average Daily Results Sets Served      $* per Results Sets Served"

      2) Except as provided above, the terms and conditions of the Agreement
remain unchanged.

      IN WITNESS WHEREOF, the parties have caused this Amendment to the
Agreement to be duly executed, effective as of this 1st day of June, 2000.

INKTOMI CORPORATION                       MICROSOFT CORPORATION

By: /s/ David Ponzini                     By: /s/ Bill Bliss
    --------------------------------          --------------------------------

Name: David Ponzini                       Name: Bill Bliss
      ------------------------------            ------------------------------

Title: Director of Finance                Title: General Manager - MSN Search
       -----------------------------             -----------------------------

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to the
  omitted portions.

<PAGE>
                              AMENDMENT NUMBER TWO
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                                     BETWEEN
                              MICROSOFT CORPORATION
                                       AND
                               INKTOMI CORPORATION

      This document (the "Amendment Two") shall serve to amend the Portal
Services Agreement and any Exhibits, Attachments, Addenda, or Schedules thereto
(the "Agreement") between Microsoft Corporation ("Customer") and Inktomi
Corporation ("Inktomi") dated October 28, 1999 (the "Agreement"),

                                    RECITALS

      WHEREAS, Customer and Inktomi desire to amend and clarify the Agreement so
as to enable Customer to display certain Inktomi URLs on the Customer Site;

      NOW, THEREFORE, Customer and Inktomi agree to amend the Agreement as
follows:

      1. The following definitions are added to Section 1 of the Agreement:

            (a) "Monetized URL" means all URLs supplied to Inktomi by an Inktomi
Paid Inclusion Customer. Such URLs shall pertain to web sites that are publicly
available through the Internet and shall have a cost-per-Click Through revenue
opportunity for Customer.

            (b) "Inktomi Paid Inclusion Customer" means an Inktomi customer
whose URLs are included in the web search results served by Inktomi.

            (c) "Paid Inclusion Display" means the display of Monetized URLs by
Inktomi on Customer Site.

            (d) "Redirect URL" means the URL supplied by Inktomi to Customer to
track click-through traffic.

            (e) "Paid Inclusion Program" means that program provided by Inktomi
to Inktomi Paid Inclusion Customers which gives such customers the opportunity
to display their URLs on the Customer Site for which Inktomi shall receive per
Click Through revenue, a portion of which Inktomi shall remit to Customer
pursuant to this Amendment.

            (f) "Click Through" means an instance in which a third party
Internet user navigates to a page of the Inktomi Paid Inclusion Customer's site
by clicking on a Monetized URL on the Customer Site.
<PAGE>
            (g) "Revenue" shall mean gross revenue due to Inktomi from Inktomi
Paid Inclusion Customers from Click Throughs.

      2. The parties acknowledge and agree that Inktomi may be permitted to
display Monetized URLs on the Customer Site in the manner described on Exhibit
B. Customer may, but is not obligated to, display Inktomi's Monetized URLs on
The Customer Site. This amendment is for the Customer U.S. Site and Customer
international markets as defined by Customer.

      3. The following provisions are added to Schedule 2 of the Agreement:

            (a) Paid Inclusion Program Fees. Inktomi shall pay Customer revenue
from Click Throughs in accordance with Exhibit B, which is hereby added and
incorporated into the Agreement.

      4. The Inktomi warranties specified in Section 4.1 and the Inktomi
indemnification obligations specified in Section 7.1 of the Agreement shall
apply to the Inktomi Paid Inclusion Products.

      5. The Term of this Amendment shall be for the duration of the Agreement
or until the Agreement is otherwise terminated. Customer may (i) terminate this
Amendment at any time, without cause, upon sixty (60) days written notice to
Inktomi; or (ii) terminate this Amendment at any time, for legal or Public
Relations concern, upon five (5) days prior written notice to Inktomi.

      Other than the changes above, the terms and conditions of the Agreement
remain unchanged and in full force and effect.

      The effective date of this Amendment shall be the later of the two
signature dates below.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By: /s/ John Krass                        By: /s/ David Ponzini
    --------------------------------          --------------------------------

Name: John Krass                          Name: David Ponzini
      ------------------------------            ------------------------------

Title: MSN Search - Business Manager      Title: Director of Finance
       -----------------------------             -----------------------------

Date: 1/17/01                             Date: 1/17/01
      ------------------------------            ------------------------------

                                                                             -2-
<PAGE>
                                    EXHIBIT B

      1. CUSTOMER'S OBLIGATIONS

            1.1 If Customer chooses to display Monetized URLs on the Customer
Site, Customer shall control the manner to which such URLs are displayed,
including any placement (weighting or boosting) of such. If the ranking
algorithm used by Inktomi includes a factor for the URL being "monetized," then
Customer shall have the ability to control such ranking algorithm, including the
ability to change such or turn it off.

            1.2 Customer shall use the Redirect URL in conjunction with all
Monetized URLs.

      2. INKTOMI OBLIGATIONS

            2.1 Inktomi shall provide to Customer a display Monetized URL (which
is the destination URL seen by the end user) and a Redirect URL (which directs
the end user through an Inktomi tracking server and then to the displayed URL)
in a format acceptable to Customer.

            2.2 Subject to applicable laws, regulations, and other
authorizations, Inktomi shall provide Customer with statistical information for
the period in which a Monetized URL was displayed on Customer Site, in a format
acceptable to customer.

            2.3 Inktomi is solely responsible for all sales, marketing, billing
and client support of the Inktomi Paid Inclusion Program.

            2.4 Upon Customer's request, within three (3) days Inktomi shall
remove all Monetized URLs and Redirect URLs from the search results Inktomi
delivers to Customer for publication on the Customer Site.

            2.5 Inktomi shall not use Customer's trademarks or logos on any
materials or data, either prepared by Inktomi or any third parties, without the
prior approval of Customer.

            2.6 Inktomi shall provide Inktomi Paid Inclusion Customers with Paid
Inclusion Program aggregate data only. Inktomi shall not provide Inktomi Paid
Inclusion Customers with Paid Inclusion Program specific data (i.e. Inktomi
shall provide number of Click Throughs per customer link on a whole counting all
Inktomi Paid Inclusion Program Customers, but shall not provide the number of
Click Throughs specifically coming from Customer).

            2.7 In the event that Inktomi's Redirect URL service is down,
Inktomi will modify its Results in such a way that the outage is transparent to
Customer and Customer's users within fifteen (15) minutes of the outage by
modifying the URLs to be non-redirected URLs.
<PAGE>
      3. FEES

            3.1 Each quarter, Inktomi will provide Customer with a reporting on
the number of Click Throughs for that quarter in a format acceptable to
Customer.

            3.2 Each quarter, Inktomi shall pay Customer: (i) * per cent (*%) of
booked gross Revenue, up to $*; and (ii) * percent (*%) of booked gross Revenue
over $*. Payments shall be due within thirty (30) days of the end of each
quarter.

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to the
  omitted portions.

                                                                             -2-
<PAGE>
                             AMENDMENT NUMBER THREE
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                                     BETWEEN
                              MICROSOFT CORPORATION
                                       AND
                               INKTOMI CORPORATION

      This Amendment Number Three ("Amendment Three") amends that certain Portal
Services Agreement and any exhibits, attachments, addenda, and schedules
thereto, between Microsoft Corporation ("Customer") and Inktomi Corporation
("Inktomi") dated as of October 28, 1999 (the "Agreement").

                                    RECITALS

      WHEREAS, Customer and Inktomi desire to amend the Agreement in order to
revise pricing models and service fees for certain Services to be provided by
Inktomi to Customer thereunder;

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and for such other good and valuable consideration, the sufficiency of which is
hereby acknowledged by the parties hereto, Customer and Inktomi agree to amend
the Agreement as follows

                                    AMENDMENT

1.    All capitalized terms used and not otherwise defined herein, shall have
      the meaning given to such terms in the Agreement.

2.    Delete Section 4(B) of Schedule 2 and replace with the following.

      "(B) multiplied and added in accordance with the following graduated
schedule

<TABLE>
<S>                                                <C>
      For The first * Average Daily
            Results Sets Served                    $* per Results Sets Served
      For the next * Average Daily
            Results Sets Served                    $* per Results Sets Served
      For the next * Average Daily
            Results Sets Served                    $* per Results Sets Served
      For the next * Average Daily
            Results Sets Served                    $* per Results Sets Served
      For the next * Average Daily
            Results Sets Served                    $* per Results Sets Served
      For all subsequent Average Daily
            Results Sets Served over *             $* per Results Sets Served"
</TABLE>

3.    Customer and Inktomi further agree that the Site Search Information
      Service Fee, described in Section 1 of Schedule 2 to the Agreement, the
      Supplementary Site Search Information

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to the
  omitted portions.

<PAGE>
      Service Fee, described in Section 2 of Schedule 2 of the Agreement, and
      the Site Search Capacity Expansion Fee, described in Section 3 of Schedule
      2 of the Agreement, shall each be reduced to [*].

4.    Customer shall have the option of receiving news content and search
      services through Inktomi's "Moreover News Feed" service (the "Moreover
      News Feed Service"), or such other successor service as Inktomi may
      provide from time to time. In the event Customer elects to receive the
      Moreover News Feed Service, Customer shall so notify Inktomi in writing.
      [*]

5.    With the exception of the modifications above, the terms and conditions of
      the agreement shall remain unchanged and in full force and effect.

6.    The effective date of this Amendment Three (the "Effective Date") shall be
      May 1, 2001.

      IN WITNESS WHEREOF, Customer and Inktomi have caused their respective duly
authorized representatives to execute this Amendment Three as of the Effective
Date.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By: /s/ Bill Bliss                        By: /s/ David Ponzini
    --------------------------------          ----------------------------------

Name: Bill Bliss                          Name: David Ponzini
      ------------------------------            --------------------------------

Title: General Manager - MSN Search       Title: VP, Finance
       -----------------------------             -------------------------------

Date:  5/01/01                            Date: 5/21/01
      ------------------------------            --------------------------------

[*] Certain information on this page has been omitted and filed separately with
    the Commission. Confidential Treatment has been requested with respect to
    the omitted portions.

                                                                             -2-
<PAGE>
                                 AMENDMENT FOUR
                                       TO
                            PORTAL SERVICES AGREEMENT
                                 BY AND BETWEEN
                               INKTOMI CORPORATION
                                       AND
                              MICROSOFT CORPORATION

      THIS AMENDMENT FOUR TO PORTAL SERVICES AGREEMENT (this "Amendment") is
made and entered into as of this 13th day of June, 2001 (the "Effective Date")
by and between Inktomi Corporation, a Delaware corporation, with its principal
place of business located at 4100 East Third Avenue, Foster City, California
94404 ("Inktomi") and Microsoft Corporation, a Washington corporation with its
principal place of business located at One Microsoft Way, Redmond, Washington,
98052 ("Customer").

                                    RECITALS

A.    Customer and Inktomi made and entered into that certain Portal Services
      Agreement dated as of October 28, 1999, as amended from time to time (the
      "Agreement").

B.    Customer and Inktomi wish to amend the Agreement to allow for the
      provision of additional services and to memorialize the parties
      understandings respecting fees and charges applicable for such services,
      all as set forth in this Amendment.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the foregoing, the mutual promises set
forth herein, and for such other good and valuable consideration, the
sufficiency of which is hereby acknowledged by the parties, Customer and Inktomi
do hereby amend the Agreement as follows.

1.    Definitions. All capitalized terms, not otherwise defined herein, shall
      have the meaning given to such terms in the Agreement.

2.    Additional Language Support.

      2.1   Additional Language Support. That portion of Amendment A to Exhibit
            A-1 of the Agreement, entitled "LINGUISTICS & INTERNATIONAL
            SUPPORT"`, shall be deleted in its entirety and replaced with the
            following:

            *

*Certain information on this page has been omitted and filed separately with the
 Commission. Confidential Treatment has been requested with respect to the
 omitted portions.
<PAGE>
      2.2   [*]

3.    Fees, Charges and Other Compensation. Customer shall pay for the
      additional services and language support set forth in this Amendment
      pursuant to the terms, and subject to the conditions, of Schedule 2 of the
      Agreement, as amended by that certain Amendment Number Three to the
      Agreement, made and entered into try and between Inktomi and Customer,
      with an effective date of May 1, 2003.

4.    Miscellaneous.

      4.1   Complete Understanding. This Agreement, including all Exhibits or
            attachments attached hereto, which are hereby incorporated herein by
            this reference, constitutes the final, complete and exclusive
            agreement between the parties with respect to the subject matter
            hereof, and supersedes any prior or contemporaneous agreement. A
            facsimile of a signed copy of this Amendment received from either
            party may be relied upon as an original.

      4.2   No Other Modifications. Except as expressly modified pursuant to
            this Amendment, all the provisions of the Agreement remain in full
            force and effect. No other modification, amendment or waiver of any
            provision of the Agreement shall be effective unless in writing and
            signed by an officer of Inktomi and an authorized representative of
            Customer.

[*] Certain information on this page has been omitted and filed separately with
    the Commission. Confidential Treatment has been requested with respect to
    the omitted portions.

                                                                             -2-
<PAGE>
      IN WITNESS WHEREOF, Customer and Inktomi have caused their respective duly
authorized representatives to execute this Amendment as of the Effective Date.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By: /s/ Bill Bliss                        By: /s/ David Ponzini
    --------------------------------          ----------------------------------

Name: Bill Bliss                          Name: David Ponzini
      ------------------------------            --------------------------------

Title: General Manager                    Title: VP, Finance
       -----------------------------             -------------------------------

Date: 6-13-01                             Date: 6-10-01
      ------------------------------            --------------------------------

                                                                             -3-
<PAGE>
                                    EXHIBIT C
                                       TO
                         INFORMATION SERVICES AGREEMENT

Chinese Search Services

      Inktomi shall use the Inktomi Search Engine: at its own editorial
discretion to crawl the Internet, download and analyze text and other data, sort
and organize the data, create an index of accessible data, and, after receiving
a particular search request from an end user (in the form of a word query),
locate material accessible in the Inktomi Chinese Search Database, and present
the results of the search to the end user through Customer's Asian Site(s).
Inktomi shall serve the end user search queries out of one (1) or more of its
search engine data centers at Inktomi's discretion. The functionality
specifications and performance criteria applicable to such service:, are as
follows:

      Functionality Specifications:

      Inktomi shall operate the Inktomi Search Engine so as to enable end users
of the Site to run queries against the Chinese Search Database with the
following functionality:

      *

      Chinese Search Performance Criteria:

      -     Size of Database - Minimum of at least * documents in the Chinese
            index.

      -     Database Freshness - Objective is a crawl every thirty days for
            documents in .cn, .hk, and .tw domains, as wall as documents in
            traditional and simplified Chinese. Freshness may vary depending
            upon operational circumstances.

      -     Uptime/Downtime - Minimum *% uptime (*% downtime) over monthly
            windows with a goal of *% uptime. Downtime = any * minute period
            in which Inktomi Search Engine processes no requests.

      -     Query/Response Speed - Average speed * milliseconds.

*Certain information on this page has been omitted and filed separately with the
 Commission. Confidential Treatment has been requested with respect to the
 omitted portions.

                                                                             -4-
<PAGE>
      -     Additional Criteria not expressly mentioned above - Adherence to SLA
            in current Customer Agreement.

      Production Schedule

      Both Parties shall use commercially reasonable efforts so that the Chinese
Search Services are available to Customer far use in Customer's Asian Site(s)
within thirty (30) days following the Effective Date of this Amendment.

                                                                             -5-
<PAGE>
                              AMENDMENT NUMBER FIVE
                                     TO THE
                            PORTAL SERVICES AGREEMENT
                                     BETWEEN
                              MICROSOFT CORPORATION
                                       AND
                               INKTOMI CORPORATION

      This Amendment Number Five To Portal Services Agreement ("Amendment Number
Five") is made and entered into by and between Microsoft Corporation, a
Washington corporation with its principal place of business located at One
Microsoft Way, Redmond, Washington 98052 ("Customer") and Inktomi Corporation, a
Delaware corporation with its principal place of business located at 4100 East
Third Avenue, Foster City, California 94404 ("Inktomi") as of this ___ day of
February, 2002 ("Amendment Effective Date").

                                    RECITALS

      WHEREAS, Customer and Inktomi desire to amend that certain Portal Services
Agreement, made and entered into by and between Inktomi and Customer, dated as
of October 28, 1999, as amended from time to time, (the "Agreement"), so as to
revise pricing models and service fees for certain Services to be provided by
Inktomi to Customer thereunder;

      NOW, THEREFORE, in consideration of the mutual covenants contained herein,
and for such other good and valuable consideration, the sufficiency of which is
hereby acknowledged by the parties, Customer and Inktomi agree to amend the
Agreement as follows:

                                    AMENDMENT

1.    All capitalized terms used and not otherwise defined herein, shall have
      the meaning given to such terms in the Agreement.

2.    Section 4(B) of Schedule 2 is deleted in its entirety and replaced with
      the following:

      (B) multiplied and added in accordance with the following graduated
schedule

      For the first  *  Average Daily Results                $ *  per Results
            Sets Served                                      Sets Served

      For the next  *  Average Daily Results Sets            $ *  per Results
            Served                                           Sets Served

      For the next  *  Average Daily Results Sets            $ *  per Results
            Served                                           Sets Served

      For the next  *  Average Daily Results Sets            $ *  per Results
            Served                                           Sets Served

      For the next  *  Average Daily Results Sets            $ *  per Results
            Served                                           Sets Served

      For all subsequent Average Daily Results Sets Served   $ *  per Results
            over  *                                          Sets Served

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to
  the omitted portions.

<PAGE>
3.    Except as expressly modified by this Amendment Five, the terms and
      conditions of the Agreement remain unchanged and in full force and effect.

IN WITNESS WHEREOF, the parties have caused their respective duly authorized
representatives to execute this Amendment Five on their behalf as of the
Amendment Effective Date.

MICROSOFT CORPORATION                     INKTOMI CORPORATION

By: /s/ Bill Bliss                        By: /s/ Vishal Makhijani
    --------------------------------          ----------------------------------

Name: Bill Bliss                          Name: Vishal Makhijani
      ------------------------------            --------------------------------

Title: General Manager                    Title: Director, GM Search
       -----------------------------             -------------------------------

Date: 5 March 2002                        Date: March 8, 2002
      ------------------------------            --------------------------------

                                                                   Page 2 of 3
                                                                   Confidential
<PAGE>
                                 AMENDMENT NO. 6
               Effective Date of Amendment No. 6: October 1, 2002

This AMENDMENT NO. 6 ("Amendment No. 6") to that certain Portal Services
Agreement dated effective as of October 28, 1999 (the "Agreement"), by and
between INKTOMI CORPORATION, a Delaware corporation ("Inktomi"), and MICROSOFT
CORPORATION, a Washington corporation ("Customer").

                                    RECITALS

The parties desire to amend the Agreement on the terms and conditions provided
herein; and

The parties hereby agree as follows:

                                    AMENDMENT

1.    The term will be extended to January 31, 2003

2.    Schedule 2, Section 4(B) will be deleted in its entirety and replaced with
      the following:

      (B) multiplied and added in accordance with the following graduated
schedule

<TABLE>
<CAPTION>
                     TIERS
          (AVERAGE DAILY RESULTS SETS         PRICE PER 1000 AVERAGE
           SERVED PER CALENDAR MONTH)        DAILY RESULTS SETS SERVED
           --------------------------        -------------------------
<S>                                          <C>
       For Average Daily Results Sets                   *
       *

       For Average Daily Results Sets                   *
       *

       For Average Daily Results Sets                   *
       *
</TABLE>

3.    Schedule 2, Exhibit B, Section 3.2 will be deleted in its entirety and
      replaced with the following:

      Each quarter, Inktomi shall pay Customer: (i) * of booked gross Revenue up
      to *; and (ii) * of all booked gross Revenue over *. Payments shall be due
      within thirty (30) days of the end of each quarter.

Defined terms herein have the same meaning as set forth in the Agreement, except
as otherwise provided.

This Amendment No. 6 amends, modifies and supersedes to the extent of any
inconsistencies, the provisions of the Agreement.  Except as expressly amended
by this Amendment No. 6, the Agreement remains in full force and effect.

                                             INKTOMI - MICROSOFT AMENDMENT NO. 6
                                                       PORTAL SERVICES AGREEMENT

                                                       CONFIDENTIAL

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to the
  omitted portions.

<PAGE>
IN WITNESS WHEREOF, the parties have executed this Amendment No. 6 as of the
Amendment No. 6 Effective Date set forth above. All signed copies of this
Amendment No. 6 are deemed originals. This Amendment No. 6 does not constitute
an offer by either party. This Amendment No. 6 is effective upon execution on
behalf of Company and Microsoft by their duly authorized representatives.

INKTOMI CORPORATION                       MICROSOFT CORPORATION
4100 E. Third Ave, Mail Stop FC2-5        One Microsoft Way
Foster City, CA 94404                     Redmond WA 98052-6399

/s/ Vishal Makhijani                      By: /s/ John Krass
------------------------------------          ----------------------------------
(Sign)                                    (Sign)

Vishal Makhijani                          John Krass
------------------------------------      --------------------------------------
Name (Print)                              Name (Print)

GM + VP, Web Search
------------------------------------      --------------------------------------
Title                                     Title

                                                                     Page 2 of 3

                                             INKTOMI - MICROSOFT AMENDMENT NO. 6
                                                       PORTAL SERVICES AGREEMENT

                                                       CONFIDENTIAL
<PAGE>
                                 AMENDMENT NO. 7
              EFFECTIVE DATE OF AMENDMENT NO. 7: DECEMBER 10, 2002

This AMENDMENT NO. 7 ("Amendment No. 7") to that certain Portal Services
Agreement dated effective as of October 28, 1999 (the "Agreement"), by and
between INKTOMI CORPORATION, a Delaware corporation ("Inktomi"), and MICROSOFT
CORPORATION, a Washington corporation ("Customer").

                                    RECITALS

The parties desire to amend the Agreement on the terms and conditions provided
herein; and

The parties hereby agree as follows:

                                    AMENDMENT

1.    Section 7.1 will be modified as follows (amendments in italics):

      7.1 By Inktomi. *

2.    The Term will extended to April 30, 2003.

3.    Schedule 2, Section 4(D) will be deleted in its entirety.

4.    Schedule 2, Section 4(D) will be renumbered Section 4(C).

Page 1 of 2               CONFIDENTIAL       Inktomi - Microsoft Amendment No. 7

* Certain information on this page has been omitted and filed separately with
  the Commission. Confidential Treatment has been requested with respect to the
  omitted portions.
<PAGE>
Defined terms herein have the same meaning as set forth in the Agreement, except
as otherwise provided.

This Amendment No. 7 amends, modifies and supersedes to the extent of any
inconsistencies, the provisions of the Agreement.  Except as expressly amended
by this Amendment No. 7, the Agreement remains in full force and effect.

IN WITNESS WHEREOF, the parties have executed this Amendment No. 7 as of the
Amendment No. 7 Effective Date set forth above.  All signed copies of this
Amendment No. 7 are deemed originals.  This Amendment No. 7 does not constitute
an offer by either party.  This Amendment No. 7 is effective upon execution on
behalf of the Company and Microsoft by their duly authorized representatives.

INKTOMI CORPORATION                       MICROSOFT CORPORATION
4100 E. Third Avenue, Mail Stop FC2-5     One Microsoft Way
Foster City, CA 94404                     Redmond, WA 98052-6398

/s/ Vishal Makhijani                     By:  /s/ John Krass
------------------------------------          ----------------------------------
(Sign)                                    (Sign)

Vishal Makhijani                          John Krass
------------------------------------      --------------------------------------
Name (Print)                              Name (Print)

GM + VP, Web Search
------------------------------------      --------------------------------------
Title                                     Title

Page 2 of 2               CONFIDENTIAL       Inktomi - Microsoft Amendment No. 7<PAGE>
                                                                     EXHIBIT 4.1

                          SALE AND SERVICING AGREEMENT

                                      among

                   NISSAN AUTO RECEIVABLES 2003-A OWNER TRUST,
                                   as Issuer,

                     NISSAN AUTO RECEIVABLES CORPORATION II,
                                   as Seller,

                                       and

                      NISSAN MOTOR ACCEPTANCE CORPORATION,
                                   as Servicer

                          Dated as of February 26, 2003

<PAGE>

                                     TABLE OF CONTENTS

<TABLE>
<CAPTION>
                                     TABLE OF CONTENTS
                                                                                                        PAGE

                                         ARTICLE I

                                        DEFINITIONS

<S>                 <C>                                                                                  <C>
SECTION 1.01        Definitions........................................................................   1
SECTION 1.02        Usage of Terms.....................................................................  19

                                        ARTICLE II

                                 CONVEYANCE OF RECEIVABLES

SECTION 2.01        Conveyance of Receivables..........................................................  19
SECTION 2.02        Custody of Receivable Files........................................................  21
SECTION 2.03        Acceptance by Issuer...............................................................  21

                                        ARTICLE III

                                      THE RECEIVABLES

SECTION 3.01        Representations and Warranties of the Seller with Respect to the Receivables.......  22
SECTION 3.02        Repurchase upon Breach.............................................................  26
SECTION 3.03        Duties of Servicer as Custodian....................................................  26
SECTION 3.04        Instructions; Authority To Act.....................................................  27
SECTION 3.05        Custodian's Indemnification........................................................  27
SECTION 3.06        Effective Period and Termination...................................................  27

                                         ARTICLE IV

                        ADMINISTRATION AND SERVICING OF RECEIVABLES

SECTION 4.01        Duties of Servicer.................................................................  28
SECTION 4.02        Collection of Receivable Payments..................................................  29
SECTION 4.03        Realization upon Receivables.......................................................  30
SECTION 4.04        Maintenance of Security Interests in Financed Vehicles.............................  30
SECTION 4.05        Covenants of Servicer..............................................................  30
SECTION 4.06        Purchase of Receivables upon Breach................................................  31
SECTION 4.07        Servicing Fee and Expenses.........................................................  31
SECTION 4.08        Servicer's Certificate.............................................................  31
SECTION 4.09        Annual Statement as to Compliance; Notice of Default...............................  32
SECTION 4.10        Annual Independent Certified Public Accountants' Report............................  32
SECTION 4.11        Access to Certain Documentation and Information Regarding Receivables..............  33
SECTION 4.12        Appointment of Subservicer.........................................................  33
SECTION 4.13        Amendments to Schedule of Receivables..............................................  33
SECTION 4.14        Acknowledgement by Servicer of its Obligations under the Indenture.................  33

</TABLE>
                                    (Nissan 2003-A Sale and Servicing Agreement)

                                        i

<PAGE>
<TABLE>
<CAPTION>
                                     TABLE OF CONTENTS
                                        (Continued)
                                                                                                        PAGE
                                         ARTICLE V

                  DISTRIBUTIONS; ACCOUNTS; STATEMENTS TO THE CERTIFICATEHOLDERS AND THE NOTEHOLDERS

<S>                 <C>                                                                                  <C>
SECTION 5.01        Establishment of Accounts..........................................................  34
SECTION 5.02        Collections........................................................................  36
SECTION 5.03        Application of Collections.........................................................  37
SECTION 5.04        Advances...........................................................................  37
SECTION 5.05        Additional Deposits................................................................  38
SECTION 5.06        Payments and Distributions.........................................................  39
SECTION 5.07        Reserve Account....................................................................  43
SECTION 5.08        Yield Supplement Account...........................................................  45
SECTION 5.09        Statements to Certificateholders and Noteholders...................................  47
SECTION 5.10        Net Deposits.......................................................................  48
SECTION 5.11        Swap Agreement.....................................................................  48

                                         ARTICLE VI

                                         THE SELLER

SECTION 6.01        Representations of Seller..........................................................  49
SECTION 6.02        Additional Covenants of the Seller.................................................  50
SECTION 6.03        Liability of Seller; Indemnities...................................................  52
SECTION 6.04        Merger or Consolidation of, or Assumption of the Obligations of, Seller............  53
SECTION 6.05        Limitation on Liability of Seller and Others.......................................  54
SECTION 6.06        Seller May Own Certificates or Notes...............................................  54

                                        ARTICLE VII

                                        THE SERVICER

SECTION 7.01        Representations of Servicer........................................................  55
SECTION 7.02        Indemnities of Servicer............................................................  56
SECTION 7.03        Merger or Consolidation of, or Assumption of the Obligations of, Servicer..........  57
SECTION 7.04        Limitation on Liability of Servicer and Others.....................................  58
SECTION 7.05        NMAC Not To Resign as Servicer.....................................................  58

                                        ARTICLE VIII

                                          DEFAULT

SECTION 8.01        Servicer Default...................................................................  59

</TABLE>
                             (Nissan 2003-A Sale and Servicing Agreement)

                                ii

<PAGE>
<TABLE>
<CAPTION>
                                     TABLE OF CONTENTS
                                        (Continued)
                                                                                                        PAGE
<S>                 <C>                                                                                  <C>
SECTION 8.02        Appointment of Successor...........................................................  60
SECTION 8.03        Repayment of Advances..............................................................  61
SECTION 8.04        Notification.......................................................................  61
SECTION 8.05        Waiver of Past Defaults............................................................  62

                                         ARTICLE IX

                            TERMINATION; RELEASE OF RECEIVABLES

SECTION 9.01        Optional Purchase of All Receivables...............................................  62
SECTION 9.02        Release of Receivables.............................................................  63
SECTION 9.03        Termination........................................................................  64

                                         ARTICLE X

                                       MISCELLANEOUS

SECTION 10.01       Amendment..........................................................................  64
SECTION 10.02       Protection of Title to Trust.......................................................  66
SECTION 10.03       Notices............................................................................  68
SECTION 10.04       Assignment by the Seller or the Servicer...........................................  68
SECTION 10.05       Limitations on Rights of Others....................................................  68
SECTION 10.06       Severability.......................................................................  68
SECTION 10.07       Separate Counterparts..............................................................  69
SECTION 10.08       Headings...........................................................................  69
SECTION 10.09       Governing Law......................................................................  69
SECTION 10.10       Assignment by Issuer...............................................................  69
SECTION 10.11       Nonpetition Covenants..............................................................  69
SECTION 10.12       Limitation of Liability of Owner Trustee and Indenture Trustee.....................  69

SECTION 10.13       Waivers............................................................................  70

SCHEDULE A          Schedule of Receivables
SCHEDULE B          Location of the Receivable Files
EXHIBIT A           Form of Yield Supplement Agreement

</TABLE>
                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       iii

<PAGE>

      SALE AND SERVICING AGREEMENT, dated as of February 26, 2003, among NISSAN
AUTO RECEIVABLES 2003-A OWNER TRUST, a Delaware statutory trust (the "Issuer"),
NISSAN AUTO RECEIVABLES CORPORATION II, a Delaware corporation (the "Seller"),
and NISSAN MOTOR ACCEPTANCE CORPORATION, a California corporation in its
individual capacity (in such capacity, "NMAC") and as Servicer (in such
capacity, the "Servicer"). Capitalized terms used herein without definition
shall have the respective meanings assigned to such terms in Article I.

      WHEREAS, the Issuer desires to purchase a portfolio of receivables arising
in connection with retail installment sales contracts secured by new, near-new
or used automobiles and light-duty trucks generated by NMAC in the ordinary
course of business and sold to the Seller;

      WHEREAS, the Seller is willing to sell such receivables to the Issuer;

      WHEREAS, the Servicer is willing to service such receivables; and.

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

                                   ARTICLE I

                                   Definitions

      SECTION 1.01 Definitions. Except as otherwise provided in this Agreement,
whenever used herein, the following words and phrases, unless the context
otherwise requires, shall have the following respective meanings:

      "Accounts" means the Collection Account, the Yield Supplement Account and
the Reserve Account.

      "Administration Agreement" means the Administration Agreement, dated as of
February 26, 2003, among the Administrator, the Issuer, the Indenture Trustee
and the Owner Trustee.

      "Administrative Purchase Payment" for any Administrative Receivable as of
the last day of any Collection Period, means the sum of the Principal Balance
thereof as of the beginning of such Collection Period plus interest accrued
thereon through the due date for the Obligor's payment in such Collection Period
at the related APR, after giving effect to the receipt of monies collected (from
whatever source other than the Advances) on such Administrative Receivable, if
any, during such Collection Period.

      "Administrative Receivable" means a Receivable purchased as of the close
of business on the last day of a Collection Period by the Servicer pursuant to
Section 4.06 or Section 9.01.

      "Administrator" means NMAC, or any successor Administrator under the
Administration Agreement.

      "Advance" means the amount, as of the last day of a Collection Period,
that the Servicer is required to advance on the respective Receivable pursuant
to Section 5.04.

<PAGE>

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

      "Aggregate Noteholders' Interest Distributable Amount" means, with respect
to any Distribution Date, the sum of the Noteholders' Interest Distributable
Amount for all Classes of Notes with respect to such Distribution Date.

      "Agreement" means this Sale and Servicing Agreement among Nissan Auto
Receivables 2003-A Owner Trust, as Issuer, NARC II, as Seller, and NMAC, as
Servicer.

      "AICPA" shall have the meaning assigned to such term in Section 4.10.

      "Amount Financed" with respect to any Receivable, means the amount
advanced under the Receivable toward the purchase price of the related Financed
Vehicle and any related costs, including but not limited to accessories,
insurance premiums, service and warranty contracts and other items customarily
financed as part of retail automobile and light-duty truck installment sale
contracts.

      "Annual Percentage Rate" or "APR" of a Receivable means the annual rate of
finance charges stated in such Receivable.

      "Annual USAP Report" shall have the meaning specified in Section 4.10.

      "Assignment" shall have the meaning assigned to such term in the Purchase
Agreement.

      "Available Amounts" means, with respect to any Distribution Date, the sum
of Available Interest and Available Principal for such Distribution Date.

      "Available Interest" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables allocable to interest, (ii) without
duplication of amounts described in clause (i), Net Liquidation Proceeds to the
extent allocable to interest due on a Liquidated Receivable in accordance with
the Servicer's customary servicing procedures, (iii) all Advances made by the
Servicer pursuant to Section 5.04, (iv) without duplication of any amounts
described above in clauses (i) and (ii), the Administrative Purchase Payment of
each Receivable that became an Administrative Receivable during the related
Collection Period to the extent attributable to interest thereon, (v) without
duplication of any amounts described above in clauses (i) and (ii), the Warranty
Purchase Payment of each Receivable that became a Warranty Receivable during the
related Collection Period to the extent attributable to interest thereon, and
(vi) the Yield Supplement Deposit plus the sum of (x) reinvestment income on the
Yield Supplement Account and (y) the amount, if any, deposited into the
Collection Account pursuant to the second or third sentence of Section 5.08(b);
provided, however, that in calculating Available Interest, amounts to be paid to
the Servicer as reimbursement for Advances pursuant to Sections 5.06(c)(i),
5.06(c)(ii), 5.06(d)(i), 5.06(d)(ii), 5.06(e)(i) and 5.06(e)(ii) on such
Distribution Date shall be excluded.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       2
<PAGE>

      "Available Principal" means, for any Distribution Date, the sum of the
following amounts received during the related Collection Period: (i) that
portion of all collections on Receivables attributable to principal, (ii)
without duplication of amounts described in clause (i), Net Liquidation Proceeds
attributable to principal due on a Liquidated Receivable in accordance with the
Servicer's customary servicing procedures, (iii) without duplication of any
amounts described above in clauses (i) and (ii), the Administrative Purchase
Payment of each Receivable that became an Administrative Receivable during the
related Collection Period to the extent attributable to principal, and (iv)
without duplication of any amounts described above in clauses (i) and (ii), the
Warranty Purchase Payment of each Receivable that became a Warranty Receivable
during the related Collection Period to the extent attributable to principal.

      "Bankruptcy Code" means the United States Bankruptcy Code, 11 U.S.C.
Section 101 et seq.

      "Base Servicing Fee" means the fee payable to the Servicer on each
Distribution Date for services rendered during the related Collection Period,
which shall be equal to one-twelfth of the Servicing Rate multiplied by the Pool
Balance as of the close of business on the last day of the immediately preceding
Collection Period or, with respect to the first Distribution Date, the Original
Pool Balance.

      "Basic Documents" means the Purchase Agreement, the Trust Agreement, the
Certificate of Trust, this Agreement, the Indenture, the Administration
Agreement, the Securities Account Control Agreement, the Yield Supplement
Agreement, the Note Depository Agreement and the other documents and
certificates delivered in connection herewith and therewith.

      "Business Day" means any day other than a Saturday, a Sunday or a day on
which banking institutions in New York, New York, Los Angeles, California,
Wilmington, Delaware or Minneapolis, Minnesota are authorized or obligated by
law, regulation, executive order or governmental decree to remain closed.

      "Certificate Balance" means, as of any Distribution Date, the Original
Certificate Balance, reduced by all amounts distributed to the
Certificateholders pursuant to Section 5.06(c), (d) and/or (e) hereof (but in no
event less than zero). For the purposes of determining whether the vote of the
requisite percentage of Certificateholders necessary to effect any consent,
waiver, request or demand shall have been obtained, the Certificate Balance
shall be deemed to be reduced by the amount equal to the balance (without giving
effect to this provision) evidenced by any Certificate registered in the name of
the Seller, the Servicer or any Person actually known to a Trust Officer of the
Owner Trustee or the Indenture Trustee, as the case may be, to be the Seller or
the Servicer or any of their Affiliates.

      "Certificate Factor" means, with respect to any Distribution Date, a
seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Certificate Balance.

      "Certificate of Trust" shall have the meaning assigned to such term in the
Trust Agreement.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       3
<PAGE>

      "Certificate Pool Factor" means, with respect to any Distribution Date, a
seven-digit decimal figure obtained by dividing the Certificate Balance as of
the close of business on the last day of the related Collection Period by the
Original Pool Balance.

      "Certificate Register" means the register maintained by the Certificate
Registrar pursuant to the Trust Agreement recording the names of the
Certificateholders.

      "Certificateholder" shall have the meaning assigned to such term in the
Trust Agreement.

      "Certificateholders' Percentage" means (a) until the Distribution Date on
which the principal amount of the Class A-1 Notes has been paid in full, zero,
and (b) with respect to any Distribution Date on or after the principal amount
of the Class A-1 Notes has been paid in full, 100% minus the Noteholders'
Percentage.

      "Certificateholders' Principal Distributable Amount" means, with respect
to any Distribution Date, an amount sufficient to reduce the outstanding
principal amount of the Certificates to an amount equal to the product of the
Certificateholders' Percentage and the Pool Balance as of the end of the related
Collection Period.

      "Certificates" shall have the meaning assigned to such term in the Trust
Agreement.

      "Class" means any one of the classes of Notes.

      "Class A-1 Final Scheduled Distribution Date" means March 15, 2004.

      "Class A-1 Interest Rate" means 1.30000% per annum.

      "Class A-1 Note" means any of the 1.30000% Asset Backed Notes, Class A-1,
issued under the Indenture.

      "Class A-1 Noteholder" means the Person in whose name a Class A-1 Note is
registered in the Note Register.

      "Class A-2 Final Scheduled Distribution Date" means May 16, 2005.

      "Class A-2 Interest Rate" means 1.45000% per annum.

      "Class A-2 Note" means any of the 1.45000% Asset Backed Notes, Class A-2,
issued under the Indenture.

      "Class A-2 Noteholder" means the Person in whose name a Class A-2 Note is
registered in the Note Register.

      "Class A-3 Final Scheduled Distribution Date" means December 15, 2006.

      "Class A-3 Interest Rate" means 1.89000% per annum.

      "Class A-3 Note" means any of the 1.89000% Asset Backed Notes, Class A-3,
issued under the Indenture.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       4
<PAGE>

      "Class A-3 Noteholder" means the Person in whose name a Class A-3 Note is
registered in the Note Register.

      "Class A-4 Final Scheduled Distribution Date" means July 15, 2008.

      "Class A-4 Interest Rate" means 2.61000% per annum.

      "Class A-4 Note" means any of the 2.61000% Asset Backed Notes, Class A-4,
issued under the Indenture.

      "Class A-4 Noteholder" means the Person in whose name a Class A-4 Note is
registered in the Note Register.

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

      "Closing Date" means February 26, 2003.

      "Code" means the Internal Revenue Code of 1986.

      "Collection Account" means the account designated as such, established and
maintained pursuant to Section 5.01.

      "Collection Period" means, with respect to any Distribution Date, the
preceding calendar month. Any amount stated "as of the close of business of the
last day of a Collection Period" or "as of the end of a Collection Period" shall
give effect to the following calculations as determined as of the end of the day
on such last day: (i) all applications of collections, (ii) all Advances and
reductions of Outstanding Advances and (iii) all distributions.

      "Corporate Trust Office" shall have the meaning assigned to such term in
the Indenture.

      "Cutoff Date" means January 31, 2003.

      "Damages" shall have the meaning assigned to such term in Section 7.02.

      "Dealer" means the dealer who sold a Financed Vehicle and who originated
and assigned the related Receivable to NMAC under an existing agreement between
such dealer and NMAC.

      "Dealer Recourse" means, with respect to a Receivable, all recourse rights
against the Dealer which originated the Receivable, and any successor Dealer.

      "Default" shall have the meaning assigned to such term in the Indenture.

      "Defaulted Receivable" means (a) a Receivable (other than an
Administrative Receivable or a Warranty Receivable), which, by its terms, is
delinquent for 120 or more days, (b) with respect to Receivables that are
delinquent for less than 120 days, the Servicer has (i) determined, in
accordance with its customary servicing procedures, that eventual payment in
full is unlikely or (ii) repossessed the Financed Vehicle, or (c) a Receivable
with respect to which the Servicer

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       5
<PAGE>

has received notification that the related Obligor is subject to proceedings
under Chapter 13 of the Bankruptcy Code.

      "Definitive Notes" shall have the meaning ascribed thereto in the
Indenture.

      "Determination Date" means the tenth calendar day of each calendar month,
or if such tenth day is not a Business Day, the next succeeding Business Day.

      "Distribution Date" means the 15th calendar day of each calendar month, or
if the 15th day is not a Business Day, the next succeeding Business Day,
commencing March 17, 2003.

      "DTC" means The Depository Trust Company.

      "Eligible Deposit Account" means an account maintained (i) with the
Indenture Trustee or the Owner Trustee so long as the Indenture Trustee's or the
Owner Trustee's short-term unsecured debt obligations have a rating of "P-1" by
Moody's and a rating of "A-1+" by Standard & Poor's, and for any account in
which deposits in excess of 30 days are to be made, so long as the Indenture
Trustee's or the Owner Trustee's long-term unsecured debt obligations have a
rating of at least "AA-" by Standard & Poor's (such short-term and long-term (if
applicable) ratings being the "Required Deposit Rating"), or (ii) in a
segregated trust account in the trust department of the Indenture Trustee or the
Owner Trustee, as the case may be. Notwithstanding anything to the contrary, as
of the Closing Date, the Indenture Trustee shall be deemed to have met the
requirements in clause (i).

      "Eligible Investments" means, at any time, any one or more of the
following obligations and securities:

            (i) direct obligations of, and obligations fully guaranteed as to
      timely payment of principal and interest by, the United States of America;

            (ii) demand deposits, time deposits or certificates of deposit of
      any depository institution or trust company incorporated under the laws of
      the United States of America or any state thereof (or any domestic branch
      of a foreign bank) and subject to supervision and examination by Federal
      or State banking or depository institution authorities; provided, however,
      that at the time of the investment or contractual commitment to invest
      therein, the commercial paper or other short-term 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) thereof shall have a credit rating from each of the Rating
      Agencies in the highest investment category granted thereby;

            (iii) commercial paper having, at the time of the investment or
      contractual commitment to invest therein, a rating from each of the Rating
      Agencies in the highest investment category granted thereby;

            (iv) investments in money market funds having a rating from each of
      the Rating Agencies in the highest investment category granted thereby
      (including funds for which the Owner Trustee, the Indenture Trustee or any
      of their respective Affiliates is investment manager or advisor);

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       6
<PAGE>

            (v) bankers' acceptances issued by any depository institution or
      trust company referred to in clause (ii) above;

            (vi) 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) described in clause (ii);

            (vii) repurchase obligations with respect to any security or whole
      loan, entered into with (a) a depository institution or trust company
      (acting as principal) described in clause (ii) above (except that the
      rating referred to in the proviso in such clause (ii) shall be "A-1" or
      higher in the case of Standard & Poor's) (such depository institution or
      trust company being referred to in this definition as a "financial
      institution"), (b) a broker/dealer (acting as principal) registered as a
      broker or dealer under Section 15 of the Exchange Act (a "broker/dealer"),
      the unsecured short-term debt obligations of which are rated "P-1" by
      Moody's and at least "A-1" by Standard & Poor's at the time of entering
      into such repurchase obligation (a "rated broker/dealer"), (c) an unrated
      broker/dealer (an "unrated broker/dealer"), acting as principal that is a
      wholly-owned subsidiary of a non-bank holding company the unsecured
      short-term debt obligations of which are rated "P-1" by Moody's and at
      least "A-1" by Standard & Poor's at the time of entering into such
      repurchase obligation (a "Rated Holding Company"), or (d) an unrated
      wholly-owned subsidiary of a direct or indirect parent Rated Holding
      Company, which guarantees such subsidiary's obligations under such
      repurchase agreement (a "Guaranteed Counterparty"); provided that the
      following conditions are satisfied:

                  (A) the aggregate amount of funds invested in repurchase
            obligations of a financial institution, a rated broker/dealer, an
            unrated broker/dealer or a Guaranteed Counterparty in respect of
            which the unsecured short-term ratings of Standard & Poor's are
            "A-1" (in the case of an unrated broker/dealer or Guaranteed
            Counterparty, such rating being that of the related Rated Holding
            Company) shall not exceed 20% of the outstanding Pool Balance (there
            being no limit on the amount of funds that may be invested in
            repurchase obligations in respect of which such Standard & Poor's
            rating is "A-1+" (in the case of an unrated broker/dealer or
            Guaranteed Counterparty, such rating being that of the related Rated
            Holding Company));

                  (B) in the case of the Reserve Account and the Yield
            Supplement Account, the rating from Standard & Poor's in respect of
            the unsecured short term debt obligations of the financial
            institution, rated broker/dealer, unrated broker/dealer or
            Guaranteed Counterparty (in the case of an unrated broker/dealer or
            Guaranteed Counterparty, such rating being that of the related Rated
            Holding Company) shall be "A-1+";

                  (C) the repurchase obligation must mature within 30 days of
            the date on which the Indenture Trustee or the Owner Trustee, as
            applicable, enters into such repurchase obligation;

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       7
<PAGE>

                  (D) the repurchase obligation shall not be subordinated to any
            other obligation of the related financial institution, rated
            broker/dealer, unrated broker/dealer or Guaranteed Counterparty;

                  (E) the collateral subject to the repurchase obligation is
            held, in the appropriate form, by a custodial bank on behalf of the
            Indenture Trustee or the Owner Trustee, as applicable;

                  (F) the repurchase obligation shall require that the
            collateral subject thereto shall be marked to market daily;

                  (G) in the case of a repurchase obligation of a Guaranteed
            Counterparty, the following conditions shall also be satisfied:

                        (1) the Indenture Trustee or the Owner Trustee, as
                  applicable, shall have received an Opinion of Counsel to the
                  effect that the guarantee of the related Rated Holding Company
                  is a legal, valid and binding agreement of the Rated Holding
                  Company, enforceable in accordance with its terms, subject to
                  the effect of bankruptcy, insolvency, reorganization and
                  moratorium or other similar laws affecting creditors' rights
                  generally and to general equitable principles;

                        (2) the Indenture Trustee or the Owner Trustee, as
                  applicable, shall have received (x) an incumbency certificate
                  for the signer of such guarantee, certified by an officer of
                  such Rated Holding Company, and (y) a resolution, certified by
                  an officer of the Rated Holding Company, of the board of
                  directors (or applicable committee thereof) of the Rated
                  Holding Company authorizing the execution, delivery and
                  performance of such guarantee by the Rated Holding Company;

                        (3) the only conditions to the obligation of such Rated
                  Holding Company to pay on behalf of the Guaranteed
                  Counterparty shall be that the Guaranteed Counterparty shall
                  not have paid under such repurchase obligation when required
                  (it being understood that no notice to, demand on or other
                  action in respect of the Guaranteed Counterparty is necessary)
                  and that the Indenture Trustee or the Owner Trustee, as
                  applicable, shall make a demand on the Rated Holding Company
                  to make the payment due under such guarantee;

                        (4) the guarantee of the Rated Holding Company shall be
                  irrevocable with respect to such repurchase obligation and
                  shall not be subordinated to any other obligation of the Rated
                  Holding Company; and

                        (5) each of the Rating Agencies has confirmed in writing
                  to the Indenture Trustee or the Owner Trustee, as applicable,
                  that it has reviewed the form of the guarantee of the Rated
                  Holding Company and has determined that the issuance of such
                  guarantee will not result in the downgrade or withdrawal of
                  the ratings assigned to the Notes; and

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       8
<PAGE>

                  (H) the repurchase obligation shall require that the
            repurchase obligation be overcollateralized and shall provide that,
            upon any failure to maintain such overcollateralization, the
            repurchase obligation shall become due and payable, and unless the
            repurchase obligation is satisfied immediately, the collateral
            subject to the repurchase agreement shall be liquidated and the
            proceeds applied to satisfy the unsatisfied portion of the
            repurchase obligation; and

            (viii) any other investment with respect to which the Servicer has
      received written notification from the Rating Agencies that the
      acquisition of such investment as an Eligible Investment will not result
      in a withdrawal or downgrading of the ratings on the Notes;

provided that, unless otherwise expressly stated herein, each of the foregoing
investments shall be denominated in U.S. dollars, shall not be purchased at a
premium, shall mature no later than the Business Day prior to the Distribution
Date immediately following the date of purchase, and shall be required to be
held to such maturity; and provided, further, that, notwithstanding clauses (i)
through (viii) above, "Eligible Investments" shall not include any security
having an "r" subscript attached to its Standard & Poor's rating.

      For purposes of this definition, any reference to the highest available
credit rating of an obligation shall mean the highest available credit rating
for such obligation (excluding any "+" signs associated with such rating), or
such lower credit rating (as approved in writing by each Rating Agency) as will
not result in the qualification, downgrading or withdrawal of the rating then
assigned by such Rating Agency to any of the Notes.

      "Event of Default" shall have the meaning assigned to such term in the
Indenture.

      "Exchange Act" means the Securities Exchange Act of 1934.

      "Final Scheduled Distribution Date" means, the Class A-1 Final Scheduled
Distribution Date, the Class A-2 Final Scheduled Distribution Date, the Class
A-3 Final Scheduled Distribution Date and the Class A-4 Final Scheduled
Distribution Date.

      "Financed Vehicle" means a new, near-new or used automobile or light-duty
truck, together with all accessions thereto, securing an Obligor's indebtedness
under the related Receivable.

      "Holder" or "Securityholder" means the registered holder of any
Certificate or Note as evidenced by the Certificate Register (as defined in the
Trust Agreement) or Note Register (as defined in the Indenture) except that,
solely for the purposes of giving certain consents, waivers, requests or demands
pursuant to the Trust Agreement or the Indenture, the interest evidenced by any
Certificate or Note registered in the name of NARC II or NMAC, or any Person
actually known to a Trust Officer to be an Affiliate of NARC II or NMAC, shall
not be taken into account in determining whether the requisite percentage
necessary to effect any such consent, waiver, request or demand shall have been
obtained unless NARC II or NMAC are the only holders.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       9
<PAGE>

      "Indenture" means the Indenture dated as of February 26, 2003, between the
Issuer and the Indenture Trustee.

      "Indenture Trustee" means the Person acting as Indenture Trustee under the
Indenture, its successors in interest and any successor trustee under the
Indenture.

      "Initial Yield Supplement Amount" means $7,542,918.93.

      "Insolvency Event" means, with respect to a specified Person, (a) the
filing of a petition seeking entry of a decree or order for relief by a court
having jurisdiction in the premises in respect of such Person or all or
substantially all of its property 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 for such Person or for all or substantially all
of its property, or ordering the winding-up or liquidation of such Person's
affairs, and such petition shall remain unstayed and in effect for a period of
90 consecutive days; or (b) 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 of or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for
such Person or for all or substantially all of its property, or the making by
such Person of any general assignment for the benefit of creditors.

      "Interest Period" means, with respect to any Distribution Date and the
Class A-1 Notes, the period from (and including) the preceding Distribution Date
to (but excluding) such Distribution Date, except that the initial Interest
Period will be from (and including) the Closing Date to (but excluding) March
17, 2003, and, with respect to any Distribution Date and the Class A-2 Notes,
the Class A-3 Notes, and the Class A-4 Notes, the period from (and including)
the 15th day of the preceding calendar month to (but excluding) the 15th day of
the month in which such Distribution Date occurs, except that the initial
Interest Period will be from (and including) the Closing Date to (but excluding)
March 15, 2003.

      "Interest Rate" means the Class A-1 Interest Rate, the Class A-2 Interest
Rate, the Class A-3 Interest Rate or the Class A-4 Interest Rate.

      "Issuer" means Nissan Auto Receivables 2003-A Owner Trust.

      "Lien" means any security interest, lien, charge, pledge, equity or
encumbrance of any kind, other than, in the case of a Financed Vehicle, tax
liens, mechanics' liens and any liens that attach to such Financed Vehicle by
operation of law.

      "Liquidated Receivable" means a Defaulted Receivable as to which the
related Financed Vehicle has been liquidated by the Servicer.

      "Monthly Remittance Conditions" shall have the meaning assigned to such
term in Section 5.02.

      "Moody's" means Moody's Investors Service.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       10
<PAGE>

      "NARC II" means Nissan Auto Receivables Corporation II, a Delaware
corporation.

      "Net Liquidation Proceeds" means the monies collected from whatever source
on a Liquidated Receivable, net of the sum of any amounts expended by the
Servicer for the account of the Obligor, plus any amounts required by law to be
remitted to the Obligor.

      "Nissan" means Nissan Motor Co., Ltd.

      "NMAC" means Nissan Motor Acceptance Corporation, in its individual
capacity and not as Servicer.

      "Nonrecoverable Advance" means any Outstanding Advance with respect to (i)
any Defaulted Receivable or (ii) any Receivable as to which the Servicer
determines that any recovery from payments made on or with respect to such
Receivable is unlikely.

      "Note" means any one of the notes issued under the Indenture.

      "Note Depository Agreement" shall have the meaning assigned to such term
in the Indenture.

      "Note Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes, as of the close of business on the
last day of the related Collection Period, by the initial Outstanding Amount of
that Class of Notes.

      "Noteholder" shall have the meaning assigned to such term in the
Indenture.

      "Noteholders' Interest Carryover Shortfall" means, with respect to any
Distribution Date and a Class of Notes, the excess, if any, of the sum of the
Noteholders' Monthly Interest Distributable Amount for such Class for the
preceding Distribution Date plus any outstanding Noteholders' Interest Carryover
Shortfall for such Class on such preceding Distribution Date, over the amount in
respect of interest that is actually paid on the Notes of such Class on such
preceding Distribution Date, plus, to the extent permitted by applicable law,
interest on the Noteholders' Interest Carryover Shortfall at the related
Interest Rate for the related Interest Period (calculated on the same basis as
interest on that Class of Notes for the same period).

      "Noteholders' Interest Distributable Amount" means, with respect to any
Distribution Date and a Class of Notes, the sum of the Noteholders' Monthly
Interest Distributable Amount for such Class plus any outstanding Noteholders'
Interest Carryover Shortfall for such Class as of the close of the immediately
preceding Distribution Date.

      "Noteholders' Monthly Interest Distributable Amount" means, with respect
to any Distribution Date and a Class of Notes, interest accrued for the related
Interest Period (calculated on the basis of, in the case of Class A-1 Notes, the
actual number of days in such Interest Period and a year assumed to consist of
360 days, and in the case of all other Classes of Notes, such Interest Period
being assumed to consist of 30 days and a year assumed to consist of 360 days)
at the related Interest Rate for such Class of Notes on the Outstanding Amount
of the Notes of such Class on the immediately preceding Distribution Date, after
giving effect to all payments of

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       11
<PAGE>

principal to Noteholders of such Class on or prior to such Distribution Date
(or, in the case of the first Distribution Date, on the original principal
amount of such Class of Notes).

      "Noteholders' Percentage" means, for any Distribution Date, the percentage
equivalent of a fraction, the numerator of which is the aggregate of the
principal balances of the Class A-2, Class A-3 and Class A-4 Notes as of the
Closing Date, and the denominator of which is the aggregate of such principal
balances plus the principal amount of the Certificates as of the Closing Date.

      "Noteholders' Principal Carryover Shortfall" means, with respect to any
Distribution Date, the excess, if any, of the Noteholders' Principal
Distributable Amount for the preceding Distribution Date over the amount in
respect of principal that is actually paid as principal on the Notes on such
previous Distribution Date. Noteholders' Principal Carryover Shortfall is not
used to determine the amount of principal due on the Notes on any Distribution
Date, but is used solely for reporting purposes.

      "Noteholders' Principal Distributable Amount" means, (a) with respect to
any Distribution Date until the principal amount of the Class A-1 Notes is
reduced to zero, an amount equal to the excess, if any, of (i) the Pool Balance
as of the end of the Collection Period preceding the related Collection Period,
or as of the Cutoff Date, in the case of the first Collection Period, over (ii)
the Pool Balance as of the end of the related Collection Period, together with
any portion of the Noteholders' Principal Distributable Amount that would have
been required to be paid pursuant to Sections 5.06(c)(v), 5.06(c)(vi),
5.06(d)(v), 5.06(d)(vii), 5.06(e)(v), 5.06(e)(vi), 5.06(e)(vii) and
5.06(e)(viii) on any prior Distribution Date had there been sufficient funds
available therefor; and (b) with respect to any Distribution Date on or after
which the principal amount of the Class A-1 Notes is reduced to zero, an amount
sufficient to reduce the aggregate outstanding principal amount of the Class A
Notes to an amount equal to the product of the Noteholders' Percentage and the
Pool Balance as of the end of the related Collection period; provided, however,
that (i) the Noteholders' Principal Distributable Amount on the Class A-1 Final
Scheduled Distribution Date shall not be less than the amount that is necessary
to reduce the outstanding principal amount of the Class A-1 Notes to zero; (ii)
the Noteholders' Principal Distributable Amount on the Class A-2 Final Scheduled
Distribution Date shall not be less than the amount that is necessary to reduce
the outstanding principal amount of the Class A-2 Notes to zero; (iii), the
Noteholders' Principal Distributable Amount on the Class A-3 Final Scheduled
Distribution Date shall not be less than the amount that is necessary to reduce
the outstanding principal amount of the Class A-3 Notes to zero; and (iv) the
Noteholders' Principal Distributable Amount on the Class A-4 Final Scheduled
Distribution Date shall not be less than the amount that is necessary to reduce
the outstanding principal amount of the Class A-4 Notes to zero.

      "Note Owner" shall have the meaning assigned to such term in the
Indenture.

      "Note Pool Factor" means, with respect to any Class of Notes and any
Distribution Date, a seven-digit decimal figure obtained by dividing the
Outstanding Amount of such Class of Notes as of the close of business on the
last day of the related Collection Period by the Original Pool Balance.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       12
<PAGE>

      "Note Register" means the register maintained by the Indenture Trustee
pursuant to the Indenture recording the name of each Noteholder.

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

      "Obligor" on a Receivable means the purchaser or co-purchasers of the
Financed Vehicle or any other Person who owes payments under the Receivable (but
excluding any Dealer in respect of Dealer Recourse).

      "Officer's Certificate" means 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 the case may be.

      "Opinion of Counsel" means one or more written opinions of counsel who
may, except as otherwise provided herein, be an employee of or counsel to the
Issuer, the Seller or the Servicer, which counsel shall be reasonably acceptable
to the Indenture Trustee, the Owner Trustee or the Rating Agencies, as the case
may be.

      "Optional Purchase" shall have the meaning assigned to such term in
Section 9.01(a).

      "Optional Purchase Percentage" means 5.00%.

      "Optional Purchase Price" means, an amount equal to the aggregate
Administrative Purchase Payments for the Receivables (including Receivables that
became Defaulted Receivables in the Collection Period preceding the Distribution
Date on which a purchase pursuant to Section 9.01 is effected), plus the
appraised value of any other property held by the Trust, such value to be
determined by an appraiser mutually agreed upon by the Servicer and the
Indenture Trustee (less liquidation expenses); provided, however, that the
Optional Purchase Price shall be equal to or greater than the sum of (i) the
Outstanding Amount of all Classes of Notes, (ii) the Noteholders' Interest
Distributable Amount for all Classes of Notes for such Distribution Date, and
(iii) the Certificate Balance.

      "Original Certificate Balance" means $89,525,150.13.

      "Original Pool Balance" means the aggregate Principal Balance of the
Receivables on the Cutoff Date.

      "Original Principal Amount" means $430,000,000 for the Class A-1 Notes,
$362,000,000 for the Class A-2 Notes, $543,000,000 for the Class A-3 Notes and
$280,712,000 for the Class A-4 Notes.

      "Outstanding" shall have the meaning assigned to that term in the
Indenture.

      "Outstanding Advances" means, with respect to a Receivable and the last
day of a Collection Period, the sum of all Advances made as of or prior to such
date, minus all payments or collections as of or prior to such date that are
specified in Sections 5.04(b) and 5.04(d) as applied to reimburse all unpaid
Advances with respect to such Receivable.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       13
<PAGE>

      "Outstanding Amount" means the aggregate principal amount of all Notes,
or, if indicated by the context, all Notes of any Class, Outstanding at the date
of determination.

      "Owner Trust Estate" means all right, title and interest of the Trust in
and to the Receivables (other than the Warranty Receivables for which the Seller
has paid the Warranty Purchase Payment in accordance with Section 3.02 and
Administrative Receivables for which the Servicer has paid the Administrative
Purchase Payment in accordance with Section 4.06), and all monies paid thereon,
and all monies accrued thereon, after the Cutoff Date; security interests in the
Financed Vehicles and any accessions thereto; the Collection Account and all
funds deposited in the Collection Account; the Yield Supplement Account and all
funds deposited in the Yield Supplement Account; all property (including the
right to receive Net Liquidation Proceeds) that shall have secured a Receivable
and that shall have been acquired by or on behalf of the Owner Trustee; proceeds
from claims on any physical damage, credit life or disability insurance policies
covering the Financed Vehicles or the Obligors; all right to receive payments in
respect of any Dealer Recourse with respect to the Receivables; all right, title
and interest of the Seller in and to the Purchase Agreement and the Assignment;
all right, title and interest of the Owner Trustee and the Trust pursuant to
this Agreement, the Yield Supplement Agreement and the Administration Agreement;
certain rebates of premiums and other amounts relating to certain insurance
policies and other items financed under the Receivables in effect as of the
Cutoff Date; and the proceeds of any and all of the foregoing.

      "Owner Trustee" means the Person acting as Owner Trustee under the Trust
Agreement, its successors in interest and any successor owner trustee under the
Trust Agreement.

      "Paying Agent" shall have the meaning assigned to such term in the
Indenture.

      "Person" means any individual, corporation, estate, partnership, joint
venture, association, joint stock company, limited liability company, trust,
unincorporated organization or government or any agency or political subdivision
thereof.

      "Pool Balance" as of the close of business on the last day of a Collection
Period means the aggregate Principal Balance of the Receivables (reduced by the
principal balance of any Administrative Receivables, Warranty Receivables and
Defaulted Receivables) as of the close of business on such day; provided,
however, that where the Pool Balance is relevant in determining whether the
requisite percentage of Certificateholders or Noteholders (or relevant Class or
Classes of Certificates or Notes, as the case may be) necessary to effect any
consent, waiver, request or demand shall have been obtained, the Pool Balance
shall be deemed to be reduced by the amount equal to the portion of the Pool
Balance (before giving effect to this provision) represented by the interests
evidenced by any applicable Certificate or Note registered in the name of the
Seller, the Servicer or any Person actually known to a Trust Officer of the
Owner Trustee or the Indenture Trustee, as the case may be, to be an Affiliate
of the Seller or the Servicer, unless all of the Certificates or Notes, as the
case may be, are held or beneficially owned by NMAC, NARC II or any of their
Affiliates.

      "Pool Factor" for a particular Class of Notes or Certificates on any
Distribution Date means a seven-digit decimal figure indicating the principal
amount of such Class of Notes or the

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       14
<PAGE>

Certificate Balance, as the case may be, as of the close of business on the last
day of the related Collection Period as a fraction of the Original Pool Balance.

      "Prepayment" means, with respect to any Receivable, any prepayment,
whether in part or in full, in respect of such Receivable.

      "Principal Balance" of a Receivable, as of any date of determination,
means the Amount Financed minus the sum of (i) all payments on such Receivable
allocable to principal, (ii) any refunded portion of extended warranty
protection plan or service contract costs, or of physical damage, credit life or
disability insurance premiums included in the Amount Financed, (iii) any payment
of the Administrative Purchase Payment or the Warranty Purchase Payment with
respect to the Receivable allocable to principal and (iv) any Net Liquidation
Proceeds allocable to principal.

      "Purchase Agreement" means that certain agreement, dated as of February
26, 2003, between NMAC and the Seller, relating to the purchase by the Seller
from NMAC of the Receivables.

      "Rating Agency" means, as of any date, any of the nationally recognized
statistical rating organizations that has been requested by the Seller or one of
its Affiliates to rate any Class of Notes and that is rating such Class of Notes
on such date.

      "Receivable" means any retail installment sale contract that appears on
Schedule A to this Agreement (which Schedule A may be in the form of microfiche,
CD, datatape or paper) and that has not been released by the Owner Trustee from
the Trust.

      "Receivable File" means the documents specified in Section 2.02 pertaining
to a particular Receivable.

      "Record Date" means, with respect to the Notes of any Class and each
Distribution Date, the 14th day of the calendar month in which such Distribution
Date occurs, and, with respect to the Certificates or if Definitive Notes,
representing any Class of Notes, have been issued, the last day of the
Collection Period preceding the related Distribution Date. Any amount stated "as
of a Record Date" or "on a Record Date" shall give effect to (i) all
applications of collections, and (ii) all distributions to any party under this
Agreement, the Indenture and the Trust Agreement or to the related Obligor, as
the case may be, in each case as determined as of the opening of business on the
related Record Date.

      "Relevant Trustee" means (i) with respect to the control over or
appropriate designation denoting ownership or control over any property
comprising a portion of the Owner Trust Estate that either is not conveyed or
pledged to the Indenture Trustee for the benefit of the Noteholders pursuant to
the Granting Clause of the Indenture or that has been released from the lien of
the Indenture, the Owner Trustee, and (ii) with respect to any property
comprising a portion of the Trust Estate (as defined in the Indenture) that has
not been released from the lien of the Indenture, the Indenture Trustee;
provided, however, that with respect to any property that is under the joint or
separate control of a co-trustee or separate trustee under the Trust Agreement
or the Indenture, respectively, "Relevant Trustee" shall refer to either or both
of the Owner

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       15
<PAGE>

Trustee and such co-trustee or separate trustee or to either or both of the
Indenture Trustee and such co-trustee or separate trustee, as the case may be.

      "Required Deposit Rating" shall have the meaning assigned to such term in
the definition of "Eligible Deposit Account."

      "Required Rate" means, with respect to each Collection Period, the sum of
(i) the Servicing Rate plus (ii) the Class A-4 Interest Rate.

      "Required Yield Supplement Amount" means, with respect to every
Distribution Date, an amount equal to the lesser of (i) the aggregate amount of
Yield Supplement Deposits that would become due for all future Distribution
Dates under the Yield Supplement Agreement, assuming (1) that payments on the
Receivables are made on their scheduled due dates, (2) that no Receivable
becomes a prepaid Receivable, and (3) a discount rate of 0.75%, and (ii) the
Initial Yield Supplement Amount.

      "Reserve Account" means the account designated as such, established and
maintained pursuant to Section 5.07.

      "Reserve Account Initial Deposit" means $8,526,185.75.

      "Schedule of Receivables" means the schedule of receivables attached as
Schedule A to this Agreement, as it may be amended from time to time.

      "Scheduled Payment" on a Receivable means the payment required to be made
by the Obligor during each Collection Period that is sufficient to amortize the
related Principal Balance under the Simple Interest Method over the term of the
Receivable and to provide interest at the related APR.

      "Securities Account Control Agreement" means the Securities Account
Control Agreement dated as of February 26, 2003, among the Seller, the Trust,
Wells Fargo Bank Minnesota, National Association, as Securities Intermediary
thereunder and Wells Fargo Bank Minnesota, National Association, as Indenture
Trustee pursuant to which the Reserve Account and the Yield Supplement Account
will be established and maintained.

      "Securities Intermediary" shall have the meaning assigned to such term in
the Securities Account Control Agreement.

      "Securityholders" has the meaning set forth in this Section 1.01 under the
definition of "Holder."

      "Seller" means NARC II, as the seller of the Receivables under this
Agreement, and each successor to NARC II (in the same capacity) pursuant to
Section 6.04.

      "Servicer" means NMAC, as the servicer of the Receivables, and each
successor to NMAC (in the same capacity) pursuant to Section 7.03 or 8.02.

      "Servicer Default" means an event specified in Section 8.01.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       16
<PAGE>

      "Servicer's Certificate" means a certificate completed and executed on
behalf of the Servicer by the president, any executive vice president, any vice
president, the treasurer, any assistant treasurer, the controller or any
assistant controller of the Servicer pursuant to Section 4.08.

      "Servicing Rate" means 1.00% per annum.

      "Simple Interest Method" means the method of allocating a fixed level
payment to principal and interest pursuant to which the portion of such payment
that is allocated to interest is equal to the product of the fixed rate of
interest multiplied by the unpaid principal balance multiplied by the quotient
obtained by calculating the period of time elapsed since the preceding payment
of interest was made and dividing such period of time by 365 or 366, as
appropriate.

      "Simple Interest Receivable" means any Receivable under which the portion
of a payment allocable to interest and the portion allocable to principal is
determined in accordance with the Simple Interest Method.

      "Specified Reserve Account Balance" means with respect to any Distribution
Date, an amount equal to $8,526,185.75, provided, however, that in the event
that on any Distribution Date (a) the annualized average for the preceding three
Collection Periods (or such smaller number of Collection Periods as have elapsed
since the Cutoff Date) of the percentage equivalents of the ratios of net losses
(i.e., the net balances of all Liquidated Receivables, less any Net Liquidation
Proceeds with respect to such Liquidated Receivables from that or prior
Collection Periods) to the Pool Balance as of the first day of each such
Collection Period exceeds 2.75% or (b) the average for the preceding three
Collection Periods (or such smaller number of Collection Periods as have elapsed
since the Cutoff Date) of the percentage equivalents of the ratios of the number
of Receivables that are delinquent 60 days or more to the outstanding number of
Receivables exceeds 2.0%, then the Specified Reserve Account Balance for such
Distribution Date (and for each succeeding Distribution Date until the relevant
averages have not exceeded the specified percentages in clauses (a) and (b)
above for three successive Distribution Dates) shall be a dollar amount equal to
the greater of (i) $8,526,185.75 and (ii) 5.0% of the Outstanding Amount of the
Notes and the Certificate Balance as of the preceding Distribution Date (after
giving effect to payments of principal made on such Distribution Date).

      "Standard & Poor's" means Standard & Poor's, a division of The McGraw-Hill
Companies, Inc.

      "Successor Servicer" means any entity appointed as a successor to the
Servicer pursuant to Section 8.02.

      "Supplemental Servicing Fee" means, with respect to any Distribution Date,
all late fees, prepayment charges and other administrative fees and expenses or
similar charges allowed by applicable law with respect to the Receivables
received by the Servicer during the related Collection Period and any interest
earned from the investment of monies in the Accounts (other than the Yield
Supplement Account) during the related Collection Period.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       17
<PAGE>

      "Swap Agreement" shall mean any currency swap agreement, including all
schedules and confirmations thereto, entered into by the Issuer and the Swap
Counterparty, as the same may be amended, supplemented, renewed, extended or
replaced from time to time.

      "Swap Counterparty" shall mean an unaffiliated third party, as swap
counterparty under the Swap Agreement, or any successor or replacement swap
counterparty from time to time under the Swap Agreement.

      "Total Servicing Fee" means the sum of the Base Servicing Fee and the
Supplemental Servicing Fee.

      "Trust" means the Issuer.

      "Trust Agreement" means the Trust Agreement, dated October 4, 2002, as
amended by the Amended and Restated Trust Agreement, dated as of February 26,
2003, between the Seller and the Owner Trustee.

      "Trust Collection Account" shall have the meaning assigned to such term in
Section 5.01(c).

      "Trust Estate" means all money, instruments, rights and other property
that are subject or intended to be subject to the lien and security interest of
the Indenture for the benefit of the Noteholders (including, without limitation,
all property and interests granted to the Indenture Trustee pursuant to the
Granting Clause of the Indenture), including all proceeds thereof.

      "Trust Officer" means, in the case of the Indenture Trustee, any officer
within the Corporate Trust Office of the Indenture Trustee, including any Vice
President, Assistant Vice President, Secretary, Assistant Secretary or any other
officer of the Indenture Trustee customarily performing functions similar to
those performed by any of the above designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred
because of such officer's knowledge of and familiarity with the particular
subject and, with respect to the Owner Trustee, any officer in the Corporate
Trust Administration Department of the Owner Trustee with direct responsibility
for the administration of the Trust Agreement and the Basic Documents on behalf
of the Owner Trustee.

      "UCC" means the Uniform Commercial Code as in effect in the relevant
jurisdiction.

      "USAP" shall have the meaning assigned to such term in Section 4.10.

      "Warranty Purchase Payment," for any Warranty Receivable as of the last
day of any Collection Period, means the sum of the Principal Balance thereof as
of the beginning of such Collection Period plus interest accrued thereon through
the due date for the Obligor's payment in such Collection Period, at the related
APR, after giving effect to the receipt of monies collected (from whatever
source other than Advances) on such Warranty Receivable, if any, during such
Collection Period.

      "Warranty Receivable" means a Receivable purchased as of the close of
business on the last day of a Collection Period by the Seller pursuant to
Section 3.02.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       18
<PAGE>

      "Yield Supplement Account" means the segregated trust account established
and maintained for the benefit of the Noteholders pursuant to Section 5.08(a).

      "Yield Supplement Agreement" means the agreement, dated as of the date of
this Agreement, among the Seller, NMAC, Wells Fargo Bank Minnesota, National
Association, as Indenture Trustee, and the Trust, substantially in the form
attached hereto as Exhibit A.

      "Yield Supplement Amount" means, with respect to any Distribution Date,
the aggregate amount on deposit in the Yield Supplement Account after giving
effect to the withdrawal therefrom of the related Yield Supplement Deposit and
without regard to any amounts on deposit therein in respect of interest or
investment earnings earned on the investment of amounts on deposit therein in
Eligible Investments for any period.

      "Yield Supplement Deposit" means, with respect to any Distribution Date,
the amount by which (a) the aggregate amount of interest that would have been
due during the related Collection Period on all Yield Supplemented Receivables
if such Yield Supplemented Receivables bore interest at the Required Rate
exceeds (b) the amount of interest accrued on such Yield Supplemented
Receivables at their respective APRs and due during such Collection Period.

      "Yield Supplemented Receivable" means any Receivable that has an APR less
than the Required Rate.

      SECTION 1.02 Usage of Terms. With respect to all terms in this Agreement,
the singular includes the plural and the plural the singular; words importing
any gender include the other genders; references to "writing" include printing,
typing, lithography and other means of reproducing words in a visible form;
references to agreements and other contractual instruments include all
subsequent amendments, amendments and restatements and supplements thereto or
changes therein entered into in accordance with their respective terms and not
prohibited by this Agreement; references to Persons include their permitted
successors and assigns; references to laws include their amendments and
supplements, the rules and regulations thereunder and any successors thereto;
and the term "including" means "including without limitation."

                                   ARTICLE II

                            Conveyance of Receivables

      SECTION 2.01 Conveyance of Receivables.

            (a) In consideration of the promises and the agreements, provisions
      and covenants herein contained and other good and valuable consideration
      to be delivered to the Seller hereunder, on behalf of the Issuer, the
      Seller does hereby sell, transfer, assign and otherwise convey to the
      Issuer, without recourse (but subject to the Seller's obligations in this
      Agreement):

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       19
<PAGE>

                  (i) all right, title and interest of the Seller in and to the
            Receivables (including all related Receivable Files) listed in
            Schedule A hereto and all monies due thereon or paid thereunder or
            in respect thereof (including proceeds of the repurchase of
            Receivables by the Seller pursuant to Section 3.02 or the purchase
            of Receivables by the Servicer pursuant to Section 4.06 or 9.01)
            after the Cutoff Date;

                  (ii) the right of the Seller in the security interests in the
            Financed Vehicles granted by the Obligors pursuant to the
            Receivables and any related property;

                  (iii) the right of the Seller in any proceeds from claims on
            any physical damage, credit life, credit disability or other
            insurance policies covering the Financed Vehicles or the Obligors;

                  (iv) the right of the Seller through NMAC to receive payments
            in respect of any Dealer Recourse with respect to the Receivables;

                  (v) the rights of the Seller under the Purchase Agreement and
            the Assignment;

                  (vi) the right of the Seller to realize upon any property
            (including the right to receive future Net Liquidation Proceeds)
            that shall have secured a Receivable;

                  (vii) the right of the Seller in rebates of premiums and other
            amounts relating to insurance policies and other items financed
            under the Receivables in effect as of the Cutoff Date;

                  (viii) all other assets comprising the Owner Trust Estate; and

                  (ix) all proceeds of the foregoing.

            On the Closing Date, the Seller shall deliver to, or to the order
      of, the Issuer all property conveyed pursuant to this Section 2.01(a),
      except for monies received in respect of the Receivables after the Cutoff
      Date and before the Closing Date which shall be deposited by NMAC (in its
      individual capacity or as the Servicer) into the Collection Account no
      later than the first Record Date after the Closing Date. Concurrently
      therewith and in exchange therefor, the Issuer shall deliver to, or to the
      order of, the Seller the Notes and the Certificates.

            (b) It is the intention of the Seller that the transfer and
      assignment contemplated by this Agreement shall constitute a sale of the
      Receivables from the Seller to the Issuer and the beneficial interest in
      and title to the Receivables shall not be part of the Seller's estate in
      the event of the filing of a bankruptcy petition by or against the Seller
      under any bankruptcy law. The Seller agrees to execute and file all
      filings (including filings under the UCC) necessary in any jurisdiction to
      provide third parties with notice of the sale of the Receivables pursuant
      to this Agreement and to perfect such sale under the UCC.

            (c) Although the parties hereto intend that the transfer and
      assignment contemplated by this Agreement be a sale, if such transfer and
      assignment is deemed to

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       20
<PAGE>

      be other than a sale, the parties intend that all filings described in the
      foregoing paragraph shall give the Issuer a first priority perfected
      security interest in, to and under the Receivables, and other property
      conveyed hereunder and all proceeds of any of the foregoing. This
      Agreement shall be deemed to be the grant of a security interest from the
      Seller to the Issuer, and the Issuer shall have all the rights, powers and
      privileges of a secured party under the UCC.

            (d) In connection with the foregoing conveyance, the Servicer shall
      maintain its computer system so that, from and after the time of sale of
      the Receivables to the Issuer under this Agreement, the Servicer's master
      computer records that refer to any Receivable indicate clearly the
      interest of the Issuer in such Receivables and that such Receivable is
      owned by the Issuer and controlled by the Issuer. Indication of the
      Issuer's ownership of a Receivable shall be deleted from or modified on
      the Servicer's computer systems when, and only when, the Receivable has
      been paid in full, repurchased or assigned pursuant to this Agreement.

            (e) Ownership and control of the Receivables, as between the Issuer
      and the Indenture Trustee (on behalf of the Noteholders and the
      Certificateholders) shall be governed by the Indenture.

      SECTION 2.02 Custody of Receivable Files. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, the Issuer, upon
the execution and delivery of this Agreement, appoints the Servicer, and the
Servicer accepts such appointment, to act as the agent of the Issuer as
custodian of the following documents or instruments that are hereby
constructively delivered to the Issuer with respect to each Receivable:

            (a) the original of such Receivable (or a photocopy or other image
      thereof that the Servicer shall keep on file in accordance with its
      customary procedures) fully executed by the Obligor;

            (b) the original credit application fully executed by the related
      Obligor (or a photocopy or other image thereof that the Servicer shall
      keep on file in accordance with its customary procedures);

            (c) the original certificate of title (or a photocopy or other image
      thereof or such documents that the Servicer shall keep on file in
      accordance with its customary procedures), evidencing the security
      interest of the Servicer in the related Financed Vehicle; and

            (d) any and all other documents that the Servicer shall keep on
      file, in accordance with its customary procedures, relating to such
      Receivable, the related Obligor or Financed Vehicle.

      SECTION 2.03 Acceptance by Issuer. The Issuer acknowledges its acceptance
pursuant to this Agreement, of all right, title and interest in and to the
Receivables and other property conveyed by the Seller pursuant to this Agreement
and declares and shall declare from and after the date hereof that the Issuer
holds and shall hold such right, title and interest, upon the terms and
conditions set forth in this Agreement.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       21
<PAGE>

                                  ARTICLE III

                                 The Receivables

      SECTION 3.01 Representations and Warranties of the Seller with Respect to
the Receivables. The Seller makes the following representations and warranties
as to the Receivables on which the Issuer is deemed to have relied in acquiring
the Receivables. Such representations and warranties speak as of the execution
and delivery of this Agreement and as of the Closing Date, but shall survive the
sale, transfer and assignment of the Receivables to the Issuer and the pledge
thereof to the Indenture Trustee pursuant to the Indenture.

            (a) Characteristics of Receivables. Each Receivable (i) has been
      originated in the United States of America by a Dealer for the retail sale
      of a Financed Vehicle in the ordinary course of such Dealer's business,
      has been fully and properly executed by the parties thereto, has been
      purchased by the Seller from NMAC pursuant to the Purchase Agreement,
      which in turn has purchased such Receivables from such Dealer under an
      existing dealer agreement with NMAC, and has been validly assigned by such
      Dealer to NMAC, which in turn has been validly assigned pursuant to the
      Purchase Agreement by NMAC to the Seller in accordance with its terms,
      (ii) created a valid, subsisting and enforceable security interest in
      favor of NMAC in such Financed Vehicle, which security interest has been
      validly assigned pursuant to the Purchase Agreement by NMAC to the Seller,
      which in turn has been validly assigned by the Seller to the Issuer in
      accordance with the terms hereof, (iii) 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, (iv) provides for level monthly payments (provided that the
      payment in the first or last month in the life of the Receivable may be
      minimally different from the level payment) that fully amortize the Amount
      Financed over an original term of no greater than 63 months, and (v)
      provides for interest at the related APR.

            (b) Schedule of Receivables. The information set forth in Schedule A
      to this Agreement was true and correct in all material respects as of the
      opening of business on the Cutoff Date; the Receivables were selected from
      NMAC's retail installment sale contracts (other than contracts originated
      in Alabama, Hawaii or Maine) meeting the criteria of the Trust set forth
      in this Agreement; and no selection procedures believed to be adverse to
      the Securityholders were utilized in selecting the Receivables.

            (c) Compliance with Law. Each Receivable, the origination of such
      Receivable, and the sale of the Financed Vehicle complied at the time it
      was originated or made and at the execution of this Agreement complies in
      all material respects with all requirements of applicable federal, state
      and local laws, and regulations thereunder, including usury laws, the
      Federal Truth-in-Lending Act, the Equal Credit Opportunity Act, the Fair
      Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal
      Trade Commission Act, the Magnuson-Moss Warranty Act, the Soldiers and
      Sailors Civil Relief Act of 1940, the Federal Reserve Board's Regulations
      B and Z, and state adaptations of the National Consumer Credit Protection
      Act and of the Uniform Consumer Credit Code, state "Lemon Laws" designed
      to prevent fraud in the sale of

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       22
<PAGE>

      automobiles and other consumer credit laws and equal credit opportunity
      and disclosure laws.

            (d) Binding Obligation. Each Receivable represents the genuine,
      legal, valid and binding payment obligation in writing of the Obligor,
      enforceable by the holder thereof in accordance with its terms subject to
      the effect of bankruptcy, insolvency, reorganization, moratorium or other
      similar laws affecting creditors' rights generally and by general
      equitable principles.

            (e) Security Interest in Financed Vehicle. (i) Immediately prior to
      the sale, assignment and transfer thereof to the Issuer, each Receivable
      was secured by a validly perfected first priority security interest in the
      Financed Vehicle in favor of NMAC as secured party or all necessary and
      appropriate actions shall have been commenced that would result in the
      valid perfection of a first priority security interest in the Financed
      Vehicle in favor of NMAC as secured party, and (ii) as of the Cutoff Date,
      according to the records of NMAC, no Financed Vehicle has been repossessed
      and the possession thereof not reinstated.

            (f) Receivables in Force. No Receivable has been satisfied,
      subordinated or rescinded, nor has any Financed Vehicle been released from
      the lien granted by the related Receivable in whole or in part.

            (g) No Waiver. No provision of a Receivable has been waived in a
      manner that is prohibited by the provisions of Section 4.01 or that would
      cause such Receivable to fail to meet all of the other requirements and
      warranties made by the Seller herein with respect thereto.

            (h) No Defenses. No Receivable is subject to any right of
      rescission, setoff, counterclaim or defense, including the defense of
      usury, and the operation of any of the terms of any Receivable, or the
      exercise of any right thereunder, will not render such Receivable
      unenforceable in whole or in part or subject such Receivable to any right
      of rescission, setoff, counterclaim or defense, including the defense of
      usury, and no such right of rescission, setoff, counterclaim or defense
      has been asserted with respect thereto.

            (i) No Liens. To the Seller's knowledge, no liens have been filed
      for work, labor or materials relating to a Financed Vehicle that shall be
      liens prior to, or equal or coordinate with, the security interest in the
      Financed Vehicle granted by the Receivable.

            (j) No Default. Except for payment defaults continuing for a period
      of not more than 29 days as of the Cutoff Date, no default, breach,
      violation or event permitting acceleration under the terms of any
      Receivable has occurred; and no continuing condition that with notice or
      the lapse of time would constitute a default, breach, violation or event
      permitting acceleration under the terms of any Receivable has arisen
      (other than deferrals and waivers of late payment charges or fees
      permitted hereunder).

            (k) Insurance. NMAC, in accordance with its customary procedures,
      has determined at the time of origination of each Receivable that the
      related Obligor has

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       23
<PAGE>

      agreed to obtain physical damage insurance covering the Financed Vehicle
      and the Obligor is required under the terms of the related Receivable to
      maintain such insurance.

            (l) Title. It is the intention of the Seller that the transfer and
      assignment herein contemplated constitute a sale of the Receivables from
      the Seller to the Trust and that the beneficial interest in and title to
      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. Immediately prior to the transfer and assignment herein
      contemplated, the Seller had good and marketable title to each Receivable
      free and clear of all Liens, and immediately upon the transfer thereof,
      the Issuer, for the benefit of the Noteholders and the Certificateholders,
      shall have good and marketable title to each Receivable, free and clear of
      all Liens and rights of others. Each Receivable File contains the original
      certificate of title (or a photocopy or image thereof) or evidence that an
      application for a certificate of title has been filed. To the extent the
      transfer and assignment contemplated under this Agreement is deemed to be
      other than a sale, this Agreement and all filings described under this
      Agreement create a valid and continuing security interest (as defined in
      the applicable UCC) in the Receivables 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.

            (m) Lawful Assignment. No Receivable has been originated in, or
      shall be subject to the laws of, any jurisdiction under which the sale,
      transfer and assignment of such Receivable under this Agreement are
      unlawful, void or voidable.

            (n) All Filings Made. All filings (including, without limitation,
      UCC filings) necessary in any jurisdiction to give the Relevant Trustee a
      first priority perfected ownership interest in the Receivables have been
      made or have been delivered to the Relevant Trustee in a form suitable for
      filing.

            (o) Chattel Paper. Each Receivable constitutes "tangible chattel
      paper," as such term is defined in the UCC.

            (p) Simple Interest Receivables. All of the Receivables are Simple
      Interest Receivables.

            (q) One Original. There is only one original executed copy of each
      Receivable.

            (r) No Amendments. No Receivable has been amended such that the
      amount of the Obligor's Scheduled Payments has been increased.

            (s) APR. The APR of each Receivable equals or exceeds 0.00%.

            (t) Maturity. As of the Cutoff Date, each Receivable had a remaining
      term to maturity of not less than 3 payments and not greater than 56
      payments.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       24
<PAGE>

            (u) Balance. Each Receivable had an original Principal Balance of
      not more than $50,000.00 and, as of the Cutoff Date, had a principal
      balance of not less than $2,000.00 and not more than $47,000.00.

            (v) Delinquency. No Receivable was more than 29 days past due as of
      the Cutoff Date, and no Receivable has been extended by more than two
      months.

            (w) Bankruptcy. No Obligor was the subject of a bankruptcy
      proceeding (according to the records of NMAC) as of the Cutoff Date.

            (x) Transfer. Each Receivable prohibits the sale or transfer of the
      Financed Vehicle without the consent of NMAC.

            (y) New, Near-New and Used Vehicles. Each Financed Vehicle was a
      new, near-new or used automobile or light-duty truck at the time the
      related Obligor executed the retail installment sale contract.

            (z) Origination. Each Receivable has an origination date on or after
      February 23, 1998.

            (aa) Receivable Files. The Receivable Files shall be kept at one or
      more of the locations listed in Schedule B hereto. The Receivable Files
      that constitute or evidence the Receivables do not have any marks or
      notations indicating that they have been pledged, assigned or otherwise
      conveyed by the Seller to any Person other than the Issuer. All financing
      statements filed or to be filed against the Seller in favor of the Issuer
      in connection herewith describing the Receivables contain a statement to
      the following effect: "A purchase of or security interest in any
      collateral described in this financing statement, except as permitted in
      the Sale and Servicing Agreement, will violate the rights of the Issuer."

            (bb) Forced-Placed Insurance Premiums. No contract relating to any
      Receivable has had forced-placed insurance premiums added to the amount
      financed.

            (cc) No Fraud or Misrepresentation. To the knowledge of the Seller,
      no Receivable was originated by a Dealer and sold by such Dealer to the
      Seller with any conduct constituting fraud or misrepresentation on the
      part of such Dealer.

            (dd) No Further Amounts Owed on the Receivables. No further amounts
      are owed by the Seller to any Obligor under the Receivables.

            (ee) No Pledge or Assignment of Receivables. Other than the security
      interest granted to the Issuer pursuant to this Agreement, the Seller has
      not pledged, assigned, sold, granted a security interest in, or otherwise
      conveyed any of the Receivables. The Seller has not authorized the filing
      of and is not aware of any financing statements against the Seller that
      include a description of collateral covering the Receivables other than
      any financing statement relating to the security interest granted to the
      Issuer hereunder or a financing statement as to which the security
      interest covering the

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       25
<PAGE>

      Receivables has been released. The Seller is not aware of any judgment or
      tax lien filings against the Seller.

      SECTION 3.02 Repurchase upon Breach. The Seller, the Servicer or the
Issuer, as the case may be, shall inform the other parties to this Agreement and
the Indenture Trustee promptly, in writing, upon the discovery of any breach of
the Seller's representations and warranties pursuant to Section 3.01 that
materially and adversely affects the interests of the Securityholders in any
Receivable. Unless the breach shall have been cured by the last day of the
second Collection Period following such discovery (or, at the Seller's election,
the last day of the first Collection Period following such discovery), the
Seller shall be obligated (whether or not such breach was known to the Seller on
the Closing Date), and the Issuer shall enforce the obligation of the Seller
under this Agreement and, if necessary, the Seller shall enforce the obligation
of NMAC under the Purchase Agreement, to repurchase any Receivable the
Securityholders' interest in which was materially and adversely affected by the
breach as of such last day. A breach of the representation in Section
3.01(a)(iv), (t) or (u) shall be deemed to affect materially and adversely the
related Receivable. In consideration of the purchase of the Receivables, the
Seller shall remit the Warranty Purchase Payment in the manner specified in
Section 5.05. For purposes of this Section 3.02, the Warranty Purchase Payment
of a Receivable that is not consistent with the Seller's warranty pursuant to
Section 3.01(a)(iv) shall include such additional amount as shall be necessary
to provide the full amount of interest as contemplated therein to the date of
repurchase. The sole remedy of the Trust, the Indenture Trustee (by operation of
the assignment of the Issuer's rights hereunder pursuant to the Indenture) or
any Securityholder with respect to a breach of the Seller's representations and
warranties pursuant to Section 3.01 shall be to require the Seller to repurchase
Receivables pursuant to this Section and to enforce the obligation of NMAC to
the Seller to repurchase such Receivables pursuant to the Purchase Agreement.

      SECTION 3.03 Duties of Servicer as Custodian.

            (a) Safekeeping. The Servicer shall hold the Receivable Files as
      custodian for the benefit of the Issuer and maintain such accurate and
      complete accounts, records and computer systems pertaining to each
      Receivable File as shall enable the Issuer to comply with this Agreement.
      In performing its duties as custodian, the Servicer shall act with
      reasonable care, using that degree of skill and attention that the
      Servicer exercises with respect to the receivable files relating to all
      comparable automotive receivables that the Servicer services for itself or
      others. In accordance with its customary practices with respect to its
      retail installment sale contracts, the Servicer shall 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 shall enable the Issuer, the Owner Trustee or the
      Indenture Trustee to verify the accuracy of the Servicer's record keeping.
      The Servicer shall promptly report to the Issuer and the Indenture Trustee
      any material failure on its part to hold the Receivable Files and maintain
      its accounts, records and computer systems as herein provided in all
      material respects and shall promptly take appropriate action to remedy any
      such material failure. Nothing herein shall be deemed to require an
      initial review or any periodic review by the Issuer, the Owner Trustee or
      the Indenture Trustee of the Receivable Files.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       26
<PAGE>

            (b) Maintenance of and Access to Records. The Servicer shall
      maintain each Receivable File at one of its offices specified in Schedule
      B or at such other office as shall be specified to the Owner Trustee and
      the Indenture Trustee by written notice from the Servicer not later than
      90 days after any change in location. The Servicer shall make available to
      the Owner Trustee and the Indenture Trustee or their respective duly
      authorized representatives, attorneys or auditors the Receivable Files and
      the related accounts, records and computer systems maintained by the
      Servicer at such times during normal business hours as the Owner Trustee
      or the Indenture Trustee shall instruct. The Servicer shall permit the
      Owner Trustee, the Indenture Trustee and their respective agents at any
      time during normal business hours upon reasonable prior notice to inspect,
      audit and make copies of and abstracts from the Servicer's records
      regarding any Receivable.

            (c) Release of Documents. Upon the occurrence and during the
      continuation of a Servicer Default or to the extent necessary for the
      Indenture Trustee to comply with its obligations under this Agreement, the
      Servicer shall, upon instruction from the Indenture Trustee, release any
      Receivable File 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 as practicable.

      SECTION 3.04 Instructions; Authority To Act. The Servicer shall be deemed
to have received proper instructions with respect to the Receivable Files upon
its receipt of written instructions signed by a Trust Officer of the Owner
Trustee or the Indenture Trustee.

      SECTION 3.05 Custodian's Indemnification. The Servicer, as custodian,
shall indemnify the Issuer, the Owner Trustee 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 any of them 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 shall not be liable
to the Owner Trustee for any portion of any such amount resulting from the
willful misfeasance, bad faith or negligence of the Owner Trustee, and the
Servicer shall not be liable to the Indenture Trustee for any portion of any
such amount resulting from the willful misfeasance, bad faith or negligence of
the Indenture Trustee.

      SECTION 3.06 Effective Period and Termination. The Servicer's appointment
as custodian shall become effective as of the Cutoff Date, and shall continue in
full force and effect until terminated pursuant to this Section. If NMAC shall
resign as Servicer in accordance with the provisions of this Agreement or if all
of the rights and obligations of any Servicer shall have been terminated under
Section 8.01, the appointment of NMAC as custodian may be terminated by the
Indenture Trustee or by the Holders of Notes evidencing not less than 25% of the
Outstanding Amount of the Notes (but excluding for purposes of such calculation
and action all Notes held or beneficially owned by NMAC, NARC II or any of their
Affiliates unless all of the Notes are held or beneficially owned by NMAC, NARC
II or any of their Affiliates) or, with the consent of Holders of the Notes
evidencing not less than 25% of the Outstanding Amount of the Notes, by the
Owner Trustee or by the Certificateholders evidencing not less than 25% of the
Certificate Balance (but excluding for purposes of such calculation and action
all Certificates held or beneficially owned by NMAC, NARC II or any of their
Affiliates unless all of the

                                    (Nissan 2003-A Sale and Servicing Agreement)

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Certificates are held or beneficially owned by NMAC, NARC II or any of their
Affiliates), in the same manner as the Indenture Trustee or such Holders may
terminate the rights and obligations of the Servicer under Section 8.01. The
Indenture Trustee or, with the consent of the Indenture Trustee, the Issuer may
terminate the Servicer's appointment as custodian, with cause, at any time upon
written notification to the Servicer, and without cause upon 30 days' prior
written notification to the Servicer. As soon as practicable after any
termination of such appointment, the Servicer shall deliver the Receivable Files
and the related accounts and records maintained by the Servicer to the Relevant
Trustee or the agent thereof at such place or places as the Relevant Trustee may
reasonably designate.

                                   ARTICLE IV

                   Administration and Servicing of Receivables

      SECTION 4.01 Duties of Servicer.

            (a) The Servicer shall manage, service, administer and make
      collections on the Receivables with reasonable care, using that degree of
      skill and attention that the Servicer exercises with respect to all
      comparable receivables that it services for itself or others. Except with
      respect to Defaulted Receivables, Administrative Receivables or Warranty
      Receivables, the Servicer shall not change the amount of or reschedule the
      due date of any Scheduled Payment, change the APR of, or extend any
      Receivable except as provided herein or change any material term of a
      Receivable; provided, however, that:

                  (1) if a default, breach, violation, delinquency or event
            permitting acceleration under the terms of any Receivable shall have
            occurred or, in the judgment of the Servicer, is imminent, the
            Servicer may (A) extend such Receivable for credit related reasons
            that would be acceptable to the Servicer with respect to comparable
            new, near-new or used automobile or light-duty truck receivables
            that it services for itself, but only if (i) the final scheduled
            payment date of such Receivable as extended would not be later than
            the last day of the Collection Period preceding the Final Scheduled
            Distribution Date for the Class A-4 Notes, and (ii) the rescheduling
            or extension would not modify the terms of such Receivable in a
            manner that would constitute a cancellation of such Receivable and
            the creation of a new receivable for federal income tax purposes; or
            (B) reduce an Obligor's monthly payment amount in the event of a
            prepayment resulting from refunds of credit life and disability
            insurance premiums and service contracts and make similar
            adjustments in an Obligor's payment terms to the extent required by
            law;

                  (2) if at the end of the scheduled term of any Receivable, the
            outstanding principal amount thereof is such that the final payment
            to be made by the related Obligor is larger than the regularly
            scheduled payment of principal and interest made by such Obligor,
            the Servicer may permit such Obligor to pay such remaining principal
            amount in more than one payment of principal and interest, provided
            that the last such payment shall be due on or prior to the last day
            of the

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

            Collection Period preceding the Final Scheduled Distribution Date
            for the Class A-4 Notes; and

                  (3) 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.

            (b) The Servicer's duties shall include collection and posting of
      all payments, responding to inquiries of Obligors on the Receivables,
      investigating delinquencies, sending remittance advises to Obligors,
      reporting tax information to Obligors, accounting for collections,
      furnishing monthly and annual statements to the Owner Trustee and the
      Indenture Trustee with respect to distributions and making Advances
      pursuant to Section 5.04. In addition, the Servicer's duties shall include
      the execution and delivery of any filings, certificates, affidavits or
      other instruments required under the Sarbanes-Oxley Act of 2002, to the
      extent permitted by applicable law.

            (c) Without limiting the generality of the foregoing, the Servicer
      is authorized and empowered to execute and deliver, on behalf of itself,
      the Trust, the Owner Trustee, the Indenture Trustee and the
      Securityholders 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 the Receivables or to the Financed
      Vehicles securing the Receivables. If the Servicer shall commence a legal
      proceeding to enforce a Receivable, the Issuer (in the case of a
      Receivable other than an Administrative Receivable or a Warranty
      Receivable) shall thereupon be deemed to have automatically assigned,
      solely for the purpose of collection, such Receivable to the Servicer. If
      in any enforcement suit or legal proceeding it shall be held that the
      Servicer may not enforce a Receivable on the ground that it shall not be a
      real party in interest or a holder entitled to enforce such Receivable,
      the Issuer shall, at the Servicer's expense and direction, take steps to
      enforce the Receivable, including bringing suit in its name or the name of
      the Indenture Trustee or the Securityholders. The Issuer shall 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.

            (d) The Servicer, at its expense, shall obtain on behalf of the
      Trust all licenses, including those required under the Pennsylvania Motor
      Vehicle Sales Finance Act and the Maryland Financial Institutions Article,
      required by the laws of any jurisdiction to be held by the Trust in
      connection with ownership of the Receivables, and shall make all filings
      and pay all fees as may be required in connection therewith during the
      term hereof. Nothing in the foregoing or in any other section of this
      Agreement shall be construed to prevent the Servicer from implementing new
      programs, whether on an intermediate, pilot or permanent basis, or on a
      regional or nationwide basis, or from modifying its standards, policies
      and procedures as long as, in each case, the Servicer does or would
      implement such programs or modify its standards, policies and procedures
      in respect of comparable assets serviced for itself in the ordinary course
      of business.

      SECTION 4.02 Collection of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and
provisions of the Receivables as and

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       29
<PAGE>

when the same shall become due and shall follow such collection procedures as it
follows with respect to all comparable receivables that it services for itself
or others.

      SECTION 4.03 Realization upon Receivables. On behalf of the Trust, the
Servicer shall use commercially reasonable efforts, consistent with its
customary servicing procedures, to repossess or otherwise convert the ownership
of the Financed Vehicle securing any Receivable as to which the Servicer shall
have determined eventual payment in full is unlikely. The Servicer shall follow
such customary and usual practices and procedures as it shall deem necessary or
advisable in its servicing of comparable receivables, which may include
reasonable efforts to realize upon any Dealer Recourse and selling the related
Financed Vehicle at public or private sale. The foregoing shall be subject to
the provision that, in any case in which the Financed Vehicle shall have
suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in
its discretion that such repair and/or repossession will increase the Net
Liquidation Proceeds.

      SECTION 4.04 Maintenance of Security Interests in Financed Vehicles. The
Servicer shall, in accordance with its customary servicing procedures, take such
steps as are necessary to maintain perfection of the security interest created
by each Receivable in the related Financed Vehicle. The Servicer is hereby
authorized 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. If the assignment of a
Receivable to the Trust is insufficient, without a notation on the related
Financed Vehicle's certificate of title, to grant to the Trust a first priority
perfected security interest in the related Financed Vehicle, the Servicer hereby
agrees to serve as the agent of the Trust for the purpose of perfecting the
security interest of the Trust in such Financed Vehicle and agrees that the
Servicer's listing as the secured party on the certificate of title is in this
capacity as agent of the Trust.

      SECTION 4.05 Covenants of Servicer.

            (a) The Servicer shall not release the Financed Vehicle securing any
      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 repossession.

            (b) The Servicer shall not do anything to impair the rights of the
      Securityholders in the Receivables.

            (c) Except with respect to Defaulted Receivables, Administrative
      Receivables or Warranty Receivables, the Servicer shall not alter the APR
      of any Receivable or forgive payments on a Receivable. Except as provided
      in Section 4.01, the Servicer shall not modify the number of payments
      under a Receivable, increase the amount financed under a Receivable, or
      extend the due date for any payment on a Receivable.

            (d) If the Servicer shall determine not to make an Advance related
      to delinquency or non-payment of any Receivable pursuant to Section 5.04
      because it determines that such Advance would not be recoverable from
      subsequent collections on such Receivable, such Receivable shall be
      designated by the Servicer to be a Defaulted

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       30
<PAGE>

      Receivable, provided that such Receivable otherwise meets the definition
      of a Defaulted Receivable.

      SECTION 4.06 Purchase of Receivables upon Breach. The Servicer or the
Issuer shall inform the other party and the Indenture Trustee promptly, in
writing, upon the discovery of any breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
that would materially and adversely affect any Receivable. Unless the breach
shall have been cured by the last day of the second Collection Period following
such discovery (or, at the Servicer's election, the last day of the first
Collection Period following discovery), the Servicer shall (whether or not such
breach was known to the Servicer on the Closing Date) purchase any Receivable
materially and adversely affected by such breach as of such last day. In
consideration of such Receivable, the Servicer shall remit the Administrative
Purchase Payment (as reduced by any Outstanding Advances with respect to such
Receivable) in the manner specified in Section 5.05. For the purposes of this
Section 4.06, the Administrative Purchase Payment shall consist in part of a
release by the Servicer of all rights of reimbursement with respect to
Outstanding Advances with respect to the purchased Receivable. The sole remedy
of the Indenture Trustee, the Owner Trustee, the Trust or the Securityholders
against the Servicer with respect to a breach by the Servicer of its obligations
under the second sentence of Section 4.01 or under Section 4.02, 4.04 or 4.05
shall be to require the Servicer to purchase Receivables pursuant to this
Section 4.06.

      SECTION 4.07 Servicing Fee and Expenses. As compensation for the
performance of its obligations hereunder, the Servicer shall be entitled to
receive on each Distribution Date the Total Servicing Fee. Except to the extent
otherwise provided herein, the Servicer shall be required to pay all expenses
incurred by it in connection with its activities under this Agreement (including
fees and disbursements of the Indenture Trustee and independent accountants,
taxes imposed on the Servicer, expenses incurred in connection with
distributions and reports to Securityholders and all other fees and expenses not
expressly stated under this Agreement to be for the account of the
Securityholders).

      SECTION 4.08 Servicer's Certificate.

            (a) On or before the tenth day of each month (or, if such tenth day
      is not a Business Day, then on the next succeeding Business Day), the
      Servicer shall deliver to the Owner Trustee, each Paying Agent, and the
      Indenture Trustee, with a copy to each Rating Agency, a Servicer's
      Certificate containing all information necessary to make the distributions
      pursuant to Sections 5.06, 5.07 and 5.08 (including the amount of the
      aggregate collections on the Receivables; the aggregate Advances to be
      made by the Servicer, if any, the aggregate Administrative Purchase
      Payments for any Administrative Receivables to be purchased by the
      Servicer, and the aggregate Warranty Purchase Payments for any Warranty
      Receivables to be purchased by the Seller) for the Collection Period
      preceding the date of such Servicer's Certificate, all information
      necessary for the Owner Trustee to send statements to the
      Certificateholders and the Indenture Trustee to send statements to the
      Noteholders pursuant to the Trust Agreement or Indenture, as the case may
      be. Each of the Owner Trustee and the Indenture Trustee may conclusively
      rely on the information in any Servicer's Certificate and shall have no
      duty to confirm or verify the contents thereof.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       31
<PAGE>

            (b) Concurrently with delivery of the Servicer's Certificate in each
      month, the Servicer shall deliver to the underwriters of the Notes the
      Note Factor for each Class of Notes, the Certificate Factor, and the Pool
      Factor for each Class of Notes and for the Certificates, in each case as
      of the close of business on the Distribution Date occurring in such month.

      SECTION 4.09 Annual Statement as to Compliance; Notice of Default.

            (a) The Servicer shall deliver to the Owner Trustee, the Indenture
      Trustee and each of the Rating Agencies, on or before the last day of the
      third month after the end of each fiscal year of the Servicer, beginning
      June 30, 2003, an Officers' Certificate with respect to the prior fiscal
      year of the Servicer ended such calendar year (or with respect to the
      initial Officer's Certificate, the period from the date of the initial
      issuance of the Securities to March 31, 2003), stating that (i) a review
      of the activities of the Servicer during the preceding 12-month (or
      shorter) period and of its performance under this Agreement has been made
      under such officer's supervision and (ii) to the best of such officer's
      knowledge, based on such review, the Servicer has fulfilled all its
      obligations under this Agreement throughout such twelve-month (or shorter)
      period, or, if there has been a default in the fulfillment of any such
      obligation, specifying each such default known to such officer and the
      nature and status thereof. A copy of such Officer's Certificate may be
      obtained by any Certificateholder or Noteholder by a request in writing to
      the Owner Trustee or the Indenture Trustee addressed as set forth in
      Section 10.03 hereof.

            (b) The Servicer shall deliver to the Owner Trustee, the Indenture
      Trustee and each Rating Agency, promptly after having obtained knowledge
      thereof, but in no event later than five Business Days thereafter, written
      notice in an Officer's Certificate of any event that with the giving of
      notice or lapse of time, or both, would become a Servicer Default under
      Section 8.01. The Seller shall deliver to the Owner Trustee, the Indenture
      Trustee and to each such Rating Agency, promptly after having obtained
      knowledge thereof, but in no event later than five Business Days
      thereafter, written notice in an Officer's Certificate of any event that
      with the giving of notice or lapse of time, or both, would become an Event
      of Default under Section 8.01(a)(ii) or would result in any lowering of
      the ratings described in Section 5.02(a)(ii)(A).

      SECTION 4.10 Annual Independent Certified Public Accountants' Report. The
Servicer shall cause a firm of independent certified public accountants, who may
also render other services to the Servicer, the Seller or their Affiliates, to
deliver to the Owner Trustee, the Indenture Trustee and each of the Rating
Agencies, on or before the last day of the third month after the end of each
fiscal year of the Servicer, beginning June 30, 2003, with respect to the prior
fiscal year (or with respect to the initial reports, the period from the date of
the initial issuance of the Securities to March 31, 2003) the following reports:
(a) a report that such firm has audited the consolidated financial statements of
the Servicer in accordance with generally accepted auditing standards, that such
firm is independent of the Servicer within the meaning of the Code of
Professional Ethics of the American Institute of Certified Public Accountants
("AICPA"), and expressing such firm's opinion thereon; and (b) a report
indicating that such firm has examined, in accordance with standards established
by AICPA, management's assertion

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       32
<PAGE>

about the Servicer's compliance with the minimum servicing standards identified
in the Mortgage Bankers Association of America's Uniform Single Attestation
Program for Mortgage Bankers ("USAP") as such standards relate to automobile and
light-duty truck loans serviced for others, and expressing such firm's opinion
on such management assertion (the "Annual USAP Report") or any similar internal
control audit report that is acceptable to each Rating Agency. Upon the request
of any Certificateholder or Note Owner, the Owner Trustee or the Indenture
Trustee, as the case may be, shall promptly provide such Certificateholder or
Note Owner with a copy of such Annual USAP Report. For all purposes of this
Agreement, the Owner Trustee and the Indenture Trustee may rely on the
representation of any Person that it is a Certificateholder or a Note Owner, as
the case may be.

      SECTION 4.11 Access to Certain Documentation and Information Regarding
Receivables. The Servicer shall provide to the Owner Trustee and the Indenture
Trustee access to the Receivable Files in such cases where the Securityholders
shall be required by applicable statutes or regulations to review such
documentation. In each case, such access shall be afforded without charge, but
only upon reasonable request and during the normal business hours at the
respective offices of the Servicer. Nothing in this Section shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors and the failure of the Servicer to provide
access to information as a result of such obligation shall not constitute a
breach of this Section.

      SECTION 4.12 Appointment of Subservicer. So long as NMAC acts as the
Servicer, the Servicer may at any time without notice or consent subcontract
substantially all its duties under this Agreement to any corporation more than
50% of the voting stock of which is owned, directly or indirectly, by Nissan.
The Servicer may at any time perform specific duties as servicer under this
Agreement through other subcontractors; provided, however, that no such
delegation or subcontracting shall relieve the Servicer of its responsibilities
with respect to such duties as to which the Servicer shall remain primarily
responsible with respect thereto.

      SECTION 4.13 Amendments to Schedule of Receivables. If the Servicer,
during any Collection Period, assigns to a Receivable an account number that
differs from the original account number identifying such Receivable on the
Schedule of Receivables, the Servicer shall deliver to the Owner Trustee and the
Indenture Trustee, on or before the Distribution Date relating to such
Collection Period, an amendment to the Schedule of Receivables reporting the
newly assigned account number, together with the old account number of each such
Receivable. The first such delivery of amendments to the Schedule of Receivables
shall include monthly amendments reporting account numbers appearing on the
Schedule of Receivables with the new account numbers assigned to such
Receivables during any prior Collection Period.

      SECTION 4.14 Acknowledgement by Servicer of its Obligations under the
Indenture. The Servicer hereby agrees and consents to the provisions of the
Indenture applicable to it (including, without limitation, Sections 8.03(a) and
8.03(b) thereof) and agrees to be bound by such provisions.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       33
<PAGE>

                                   ARTICLE V
                            Distributions; Accounts;
            Statements to the Certificateholders and the Noteholders

SECTION 5.01 Establishment of Accounts.

      (a) The Servicer, on behalf of the Owner Trustee and the Indenture
Trustee, shall establish the Collection Account in the name of the Indenture
Trustee for the benefit of the Securityholders. The Collection Account shall be
a segregated trust account initially established with the Indenture Trustee and
maintained with the Indenture Trustee as long as (i) the deposits of the
Indenture Trustee have the Required Deposit Rating or (ii) the Collection
Account is maintained in a segregated trust account in the trust department of
the Indenture Trustee; provided, however, that all amounts held in the
Collection Account shall, to the extent permitted by applicable laws, rules and
regulations and as directed by the Servicer, be invested by the Indenture
Trustee in Eligible Investments; otherwise, such amounts shall be maintained in
cash; provided that if (x) the Servicer shall have failed to give investment
directions for any funds on deposit in the Collection Account to the Indenture
Trustee by 5:00 p.m. Eastern Time (or such other time as may be agreed by the
Servicer and the Indenture Trustee) on any Business Day, or (y) a Default or
Event of Default shall have occurred and be continuing with respect to the Notes
but the Notes shall not have been declared due and payable pursuant to the
Indenture, or (z) if the Notes shall have been declared due and payable
following an Event of Default, amounts collected or receivable from the Trust
Estate are being applied in accordance with Section 5.05 of the Indenture as if
there had not been such a declaration, then the Indenture Trustee shall, to the
fullest extent practicable, invest and reinvest funds in the Collection Account
in one or more Eligible Investments specified in clauses (i), (iv) or (vi) of
the definition of Eligible Investments. All such Eligible Investments shall
mature not later than the Business Day preceding the next Distribution Date, in
such manner that such amounts invested shall be available to make the required
distributions on the Distribution Date. The Servicer will not direct the
Indenture Trustee, and the Issuer shall cause the Servicer not to make any
investment of any funds or to sell any investment held in the Collection Account
unless the security interest granted and perfected in such account will continue
to be perfected in such investment or the proceeds of such sale, in either case
without any further action by any Person, and, in connection with any direction
to the Indenture Trustee to make any such investment or sale, if requested by
the Indenture Trustee, the Servicer shall deliver to the Indenture Trustee an
Opinion of Counsel, acceptable to the Indenture Trustee, to such effect. Should
the short-term unsecured debt obligations of the Indenture Trustee no longer
have the Required Deposit Rating then, unless the Collection Account is
maintained in segregated trust accounts in the trust department of the Indenture
Trustee, the Servicer shall, with the Indenture Trustee's assistance as
necessary and within ten Business Days of receipt of notice from the Indenture
Trustee that the Indenture Trustee no longer has the Required Deposit Rating,
cause the Collection Account (i) to be moved to segregated trust accounts in a
bank or trust company, the short-term unsecured debt obligations of which shall
have the Required Deposit Rating, or (ii) to be moved to the trust department of
the Indenture Trustee.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       34
<PAGE>

            (b) Earnings on investment of funds in the Collection Account shall
      be paid to the Servicer as servicing compensation, and any losses and
      investment expenses shall be charged against the funds on deposit in the
      Collection Account.

            (c) Subject to the foregoing, the Servicer, on behalf of the Owner
      Trustee and the Indenture Trustee, shall establish and maintain the
      Collection Account as an Eligible Deposit Account in the name of and under
      the exclusive control of the Indenture Trustee, bearing a designation
      clearly indicating that the funds deposited therein are held for the
      benefit of the Securityholders. The Indenture Trustee shall transfer all
      amounts remaining on deposit in the Collection Account on the Distribution
      Date on which the Notes of all Classes have been paid in full (or
      substantially all of the Trust Estate is otherwise released from the lien
      of the Indenture) to another Eligible Deposit Account established pursuant
      to the Trust Agreement for the benefit of the Certificateholders (the
      "Trust Collection Account"), and take all necessary or appropriate actions
      to transfer all of its right, title and interest in the Collection
      Account, all funds or investments held therein and all proceeds thereof,
      whether or not on behalf of the Securityholders, to the Owner Trustee for
      the benefit of the Certificateholders, subject to the limitations set
      forth in the Indenture with respect to amounts held for payment to
      Noteholders that do not promptly deliver a Note for payment on such
      Distribution Date. After the transfer to the Trust Collection Account
      described in the immediately preceding sentence, references in this
      Agreement to "Collection Account" shall be deemed to be references to the
      "Trust Collection Account."

            (d) With respect to the Collection Account and all property held
      therein, the Owner Trustee agrees, by its acceptance hereof that, on the
      terms and conditions set forth in the Indenture, for so long as Notes of
      any Class remain outstanding, the Indenture Trustee shall possess all
      right, title and interest therein (excluding interest or investment income
      thereon payable to the Servicer or the Seller, as the case may be), and
      the Accounts shall be under the sole dominion and control of the Indenture
      Trustee for the benefit of the Noteholders and the Certificateholders, as
      the case may be, as set forth in the Indenture. The parties hereto agree
      that the Issuer, the Owner Trustee and the Holders of the Certificates
      have no right, title or interest in the Reserve Account or any amounts on
      deposit therein at any time. The parties hereto agree that the Servicer
      shall have the power, revocable by the Indenture Trustee or by the Owner
      Trustee with the consent of the Indenture Trustee, to instruct the
      Indenture Trustee to make withdrawals and payments from the Collection
      Account for the purpose of permitting the Servicer, Indenture Trustee or
      the Owner Trustee to carry out its respective duties hereunder or under
      the Indenture or the Trust Agreement, as the case may be.

      Notwithstanding the foregoing, the Servicer shall be entitled to withhold,
or to be reimbursed from amounts otherwise payable into or on deposit in the
Collection Account, as the case may be, amounts previously deposited in the
Collection Account but later determined to have resulted from mistaken deposits
or posting.

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

      SECTION 5.02 Collections.

            (a) Except as otherwise provided in this Agreement, the Servicer
      shall remit daily to the Collection Account all payments received by or on
      behalf of the Obligors on or in respect of the Receivables (excluding
      payments on the Warranty Receivables or the Administrative Receivables)
      and all Net Liquidation Proceeds not later than the first Business Day
      after receipt thereof. For purposes of this Article V, the phrase
      "payments received by or on behalf of the Obligors" shall mean payments
      made by Persons other than the Servicer. Notwithstanding the foregoing,
      for so long as (i) NMAC is the Servicer, (ii) (A) NMAC's short-term
      unsecured debt obligations are rated at least "P-1" by Moody's and NMAC's
      short-term unsecured debt obligations (or, if NMAC is the Servicer and the
      Servicer then has no short-term rating from Standard & Poor's, Nissan
      Capital of America, Inc.'s short-term unsecured debt obligations) are
      rated "A-1" by Standard & Poor's (so long as Moody's and Standard & Poor's
      are Rating Agencies), or (B) certain arrangements are made that are
      acceptable to the Rating Agencies, and (iii) no Event of Default or
      Servicer Default shall have occurred and be continuing (unless waived by
      the appropriate Securityholders) (collectively, the "Monthly Remittance
      Conditions"); the Servicer shall not be required to remit such collections
      to the Collection Account on the foregoing daily basis but shall be
      entitled to retain such collections, without segregation from its other
      funds, until the Business Day before each Distribution Date at which time
      the Servicer shall remit all such collections in respect of the related
      Collection Period to the Collection Account in immediately available
      funds. Commencing with the first day of the first Collection Period that
      begins at least two Business Days after the day on which any Monthly
      Remittance Condition ceases to be satisfied and for so long as any Monthly
      Remittance Condition is not satisfied, all collections then held by the
      Servicer shall be immediately deposited into the Collection Account and
      all future collections on or in respect of the Receivables (other than
      payments on Warranty Receivables and the Administrative Receivables) and
      all Net Liquidation Proceeds shall be remitted by the Servicer to the
      Collection Account on a daily basis not later than the first Business Day
      after receipt thereof.

            (b) The Indenture Trustee or the Owner Trustee shall not be deemed
      to have knowledge of any event or circumstances under clause (iii) of the
      definition of the Monthly Remittance Condition unless the Indenture
      Trustee or the Owner Trustee has received notice of such event or
      circumstance from the Seller or the Servicer in an Officer's Certificate
      or from the Holders of Notes evidencing not less than 25% in principal
      amount of the Outstanding Amount of the Notes, or a Trust Officer of the
      Indenture Trustee or the Owner Trustee with knowledge hereof or
      familiarity herewith has actual knowledge of such event or circumstances.

            (c) The Servicer shall give the Owner Trustee, the Indenture Trustee
      and each Rating Agency written notice of the failure of any Monthly
      Remittance Condition (and any subsequent curing of a failed Monthly
      Remittance Condition) as soon as practical after the occurrence thereof
      but in no event later than 10 Business Days after obtaining knowledge
      thereof (it being understood that if the Monthly Remittance Condition is
      not satisfied as of the Closing Date, no such notice shall be required in
      connection therewith).

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       36
<PAGE>

            (d) Notwithstanding the foregoing, if a Monthly Remittance Condition
      is not satisfied, the Servicer may utilize an alternative remittance
      schedule (which may include the remittance schedule utilized by the
      Servicer before the Monthly Remittance Condition became unsatisfied), if
      the Servicer provides to the Owner Trustee and the Indenture Trustee
      written confirmation from each Rating Agency that such alternative
      remittance schedule will not result in the downgrading or withdrawal by
      such Rating Agency of the ratings then assigned to any Class of Notes.

      SECTION 5.03 Application of Collections. As of the Business Day
immediately preceding the related Distribution Date, all collections for the
related Collection Period with respect to each Receivable shall be applied by
the Servicer as follows:

            (a) First, to interest accrued to date on such Receivable;

            (b) Second, to principal until the Principal Balance of such
      Receivable is brought current;

            (c) Third, to reduce the unpaid late charges (if any) as provided in
      such Receivable; and

            (d) Fourth, to prepay principal on such Receivable.

      SECTION 5.04 Advances.

            (a) The Servicer shall make a payment with respect to each
      Receivable (other than an Administrative Receivable, a Warranty Receivable
      or a Liquidated Receivable) (each, an "Advance") equal to the excess if
      any, of (x) the product of the Principal Balance of such Receivable as of
      the first day of the related Collection Period and one-twelfth of its APR
      (calculated on the basis of a 360-day year comprised of twelve 30-day
      months), over (y) the interest actually received by the Servicer with
      respect to such Receivable from the Obligor or from payments of the
      Administrative Purchase Payment or the Warranty Purchase Payment, as the
      case may be, during such Collection Period. The Servicer will not be
      obligated to make an Advance in respect of a Receivable (other than an
      Advance in respect of an interest shortfall arising from the Prepayment of
      a Receivable) to the extent that the Servicer, in its sole discretion,
      shall determine that the Advance constitutes a Nonrecoverable Advance.
      With respect to each Receivable, the Advance shall increase the
      Outstanding Advances. No Advances will be made with respect to the
      Principal Balance of the Receivables. The Servicer shall deposit all such
      Advances into the Collection Account in immediately available funds no
      later than 5:00 p.m., New York City time, on the Business Day immediately
      preceding the related Distribution Date. To the extent that the amount set
      forth in clause (y) above with respect to a Receivable is greater than the
      amount set forth in clause (x) above with respect thereto, such amount
      shall be distributed to the Servicer pursuant to Section 5.06; provided,
      however, that, notwithstanding anything else herein, the Servicer shall
      not be reimbursed for any amounts representing an Advance, or any portion
      thereof, made in respect of an interest shortfall arising from the
      Prepayment of a Receivable.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       37
<PAGE>

            (b) The Servicer shall be entitled to reimbursement for Outstanding
      Advances, without interest, with respect to a Receivable from the
      following sources with respect to such Receivable pursuant to Section
      5.06(c)(i), Section 5.06(d)(i), or Section 5.06(e)(i): (i) subsequent
      payments made by or on behalf of the related Obligor, (ii) Net Liquidation
      Proceeds, and (iii) the Warranty Purchase Payments.

            (c) To the extent that the Servicer has determined that any
      Outstanding Advance is a Nonrecoverable Advance, the Servicer may provide
      to the Owner Trustee and the Indenture Trustee an Officer's Certificate
      setting forth the amount of such Nonrecoverable Advance, and on the
      related Distribution Date, the Relevant Trustee shall remit to the
      Servicer from funds on deposit in the Collection Account an amount equal
      to the amount of such Nonrecoverable Advance pursuant to Section
      5.06(c)(ii), Section 5.06(d)(ii), or 5.06(e)(ii).

            (d) Notwithstanding anything to the contrary in this Agreement, for
      so long as NMAC is the Servicer, in lieu of causing the Servicer first to
      deposit and then the Relevant Trustee to remit to the Servicer the amounts
      described in clauses (i) through (iii) in Section 5.04(b) reimbursable in
      respect on Outstanding Advances, or the amounts described in Section
      5.04(c) applicable in respect of Nonrecoverable Advances, the Servicer may
      deduct such amounts from deposits otherwise to be made into the Collection
      Account.

            (e) Notwithstanding the provisions of Section 5.04(a), no Successor
      Servicer, including the Indenture Trustee, shall be obligated to make
      Advances unless it has expressly agreed to do so in writing.

      SECTION 5.05 Additional Deposits.

            (a) The following additional deposits shall be made to the
      Collection Account: (i) the Seller shall remit the aggregate Warranty
      Purchase Payments with respect to Warranty Receivables pursuant to Section
      3.02; (ii) the Servicer shall remit (A) the aggregate Advances pursuant to
      Section 5.04(a), (B) the aggregate Administrative Purchase Payments with
      respect to Administrative Receivables pursuant to Section 4.06, and (C)
      the cash amount required upon any optional purchase of the Receivables by
      the Servicer, or any Successor Servicer, pursuant to Section 9.01; and
      (iii) the Indenture Trustee shall transfer (A) the Yield Supplement
      Deposit from the Yield Supplement Account to the Collection Account
      pursuant to Section 5.08, plus reinvestment income on the Yield Supplement
      Account (in assuring the availability therein of the related Available
      Interest), plus amounts described in the second sentence of Section
      5.08(b) and (B) the amounts described in Sections 5.06 and 5.07 from the
      Reserve Account to the Collection Account pursuant to Section 5.07.

            (b) All deposits required to be made pursuant to this Section 5.05
      by the Seller or the Servicer, as the case may be, may be made in the form
      of a single deposit and shall be made in immediately available funds, no
      later than 5:00 P.M., New York City time, on the Business Day immediately
      preceding the related Distribution Date. At the direction of the Servicer,
      the Relevant Trustee shall invest such amounts in Eligible Investments

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       38
<PAGE>

      maturing not later than 12:00 P.M. New York City Time, on the related
      Distribution Date.

      SECTION 5.06 Payments and Distributions.

            (a) The rights of the Certificateholders to receive distributions in
      respect of the Certificates shall be and hereby are subordinated to the
      rights of the Noteholders to receive distributions in respect of the Notes
      to the extent provided in this Section 5.06.

            (b) On each Determination Date, the Servicer shall calculate the
      Available Interest, the Available Principal, the Yield Supplement Deposit,
      the Noteholders' Principal Distributable Amount, the Certificateholders'
      Principal Distributable Amount, the amount to be distributed to
      Noteholders of each Class and to Certificateholders pursuant to Section
      5.06(c), (d) or (e), and all other distributions, deposits and withdrawals
      to be made on the related Distribution Date.

            (c) Subject to Sections 5.06(d) and (e), on each Distribution Date,
      the Relevant Trustee shall make the following payments and distributions
      from the Collection Account (after payment of the Supplemental Servicing
      Fee to the extent not previously retained by the Servicer) in the
      following order of priority and in the amounts set forth in the Servicer's
      Certificate for such Distribution Date; provided, however, that such
      payments and distributions shall be made only from those funds deposited
      in the Collection Account for the related Collection Period:

                  (i) to the Servicer, from amounts on deposit in the Collection
            Account, any payments in respect of Advances required to be
            reimbursed and to the extent set forth in Section 5.04(b);

                  (ii) to the Servicer, from amounts on deposit in the
            Collection Account, any payments in respect of Nonrecoverable
            Advances required to be reimbursed and to the extent set forth in
            Section 5.04(c);

                  (iii) to the Servicer, from Available Amounts, the Base
            Servicing Fee (including any unpaid Base Servicing Fees from one or
            more prior Collection Periods);

                  (iv) on a pro rata basis (based on the amounts distributable
            pursuant to this clause to each such Class), to the Class A-1
            Noteholders, the Noteholders' Interest Distributable Amount for such
            Class, to the Class A-2 Noteholders, the Noteholders' Interest
            Distributable Amount for such Class, to the Class A-3 Noteholders,
            the Noteholders' Interest Distributable Amount for such Class, and
            to the Class A-4 Noteholders, the Noteholders' Interest
            Distributable Amount for such Class; such amounts to be paid from
            Available Amounts (after giving effect to any reduction in Available
            Amounts described in clause (iii) above);

                  (v) to the Class A-1 Noteholders until the principal amount
            thereof is reduced to zero, an amount equal to the Noteholders'
            Principal Distributable Amount for such Distribution Date, such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii) and
            (iv) above);

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       39
<PAGE>

                  (vi) after the principal amount of the Class A-1 Notes is
            reduced to zero, to the Class A-2 Noteholders until the principal
            amount of the Class A-2 Notes is reduced to zero, then to the Class
            A-3 Noteholders until the principal amount of the Class A-3 Notes is
            reduced to zero, and then to the Class A-4 Noteholders until the
            principal amount of the Class A-4 Notes is reduced to zero, an
            amount equal to the Noteholders' Principal Distributable Amount for
            such Distribution Date, such amounts to be paid from Available
            Amounts (after giving effect to any reduction in Available Amounts
            described in clauses (iii) through (v) above);

                  (vii) to the Reserve Account, the amount, if any, necessary to
            cause the balance of funds therein to equal the Specified Reserve
            Account Balance with respect to such Distribution Date, such amounts
            to be paid from Available Amounts (after giving effect to any
            reduction in Available Amounts described in clauses (iii) through
            (vi) above);

                  (viii) to the Certificateholders, or, to the extent amounts
            are payable to a Swap Counterparty pursuant to a Swap Agreement as
            described in Section 5.11, to such Swap Counterparty, except on any
            Distribution Date that occurs after the Class A Notes are
            accelerated, the Certificateholders' Principal Distributable Amount,
            such amounts to be paid from Available Amounts (after giving effect
            to any reduction in Available Amounts described in clauses (iii)
            through (vii) above); and

                  (ix) any Available Amounts remaining after giving effect to
            the foregoing, to the Seller.

            (d) Notwithstanding the provisions of Section 5.06(c), after the
      occurrence of an Event of Default that results in the acceleration of any
      Notes and unless and until such acceleration has been rescinded, on each
      Distribution Date, the Relevant Trustee shall make the following payments
      and distributions from the Collection Account (after payment of the
      Supplemental Servicing Fee to the extent not previously retained by the
      Servicer) in the following order of priority and in the amounts set forth
      in the Servicer's Certificate for such Distribution Date; provided,
      however, that such payments and distributions shall be made only from
      those funds deposited in the Collection Account for the related Collection
      Period:

                  (i) to the Servicer, from amounts on deposit in the Collection
            Account, any payments in respect of Advances required to be
            reimbursed and to the extent set forth in Section 5.04(b);

                  (ii) to the Servicer, from amounts on deposit in the
            Collection Account, any payments in respect of Nonrecoverable
            Advances required to be reimbursed and to the extent set forth in
            Section 5.04(c);

                  (iii) to the Servicer, from Available Amounts, the Base
            Servicing Fee (including any unpaid Base Servicing Fees from one or
            more prior Collection Periods);

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       40
<PAGE>

                  (iv) to the Class A-1 Noteholders, the Noteholders' Interest
            Distributable Amount for such Class (after giving effect to any
            reduction in Available Amounts described in clause (iii) above);

                  (v) to the Class A-1 Noteholders, until the total amount paid
            to such Noteholders in respect of principal from the Closing Date is
            equal to the Original Principal Amount for such Class of Notes, such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii)
            through (iv) above);

                  (vi) on the Distribution Date on which the Class A-1 Notes
            have been paid in full and on each Distribution Date thereafter, on
            a pro rata basis (based on the amounts distributable pursuant to
            this clause to each such Class), to the Class A-2 Noteholders, the
            Noteholders' Interest Distributable Amount for such Class, to the
            Class A-3 Noteholders, the Noteholders' Interest Distributable
            Amount for such Class, and to the Class A-4 Noteholders, the
            Noteholders' Interest Distributable Amount for such Class; such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii)
            through (v) above);

                  (vii) to the Class A-2 Noteholders, the Class A-3 Noteholders
            and the Class A-4 Noteholders, on a pro rata basis (based on the
            Outstanding Amount of each Class), until the total amount paid to
            such Noteholders in respect of principal from the Closing Date is
            equal to the Original Principal Amount for such Class of Notes, such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii)
            through (vi) above);

                  (viii) on the Distribution Date on which the Notes have been
            paid in full and on each Distribution Date thereafter, to the
            Certificateholders, or, to the extent amounts are payable to a Swap
            Counterparty pursuant to a Swap Agreement as described in Section
            5.11, to such Swap Counterparty, until the total amount paid to the
            Certificateholders in respect of principal from the Closing Date is
            equal to the Original Certificate Balance, such amount to be paid
            from Available Amounts (after giving effect to the reduction in
            Available Amounts described in clauses (iii) through (vii) above);
            and

                  (ix) any Available Amounts remaining after giving effect to
            the foregoing, to the Seller.

            (e) Notwithstanding the provisions of Sections 5.06(c) and 5.06(d),
      after the occurrence of an Event of Default that results in the
      acceleration of any Notes, on or after the date on which such acceleration
      has been rescinded, on each Distribution Date, the Relevant Trustee shall
      make the following payments and distributions from the Collection Account
      (after payment of the Supplemental Servicing Fee to the extent not
      previously retained by the Servicer) in the following order of priority
      and in the amounts set forth in the Servicer's Certificate for such
      Distribution Date; provided, however, that such payments and distributions
      shall be made only from those funds deposited in the Collection Account
      for the related Collection Period:

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       41
<PAGE>

                  (i) to the Servicer, from amounts on deposit in the Collection
            Account, any payments in respect of Advances required to be
            reimbursed and to the extent set forth in Section 5.04(b);

                  (ii) to the Servicer, from amounts on deposit in the
            Collection Account, any payments in respect of Nonrecoverable
            Advances required to be reimbursed and to the extent set forth in
            Section 5.04(c);

                  (iii) to the Servicer, from Available Amounts, the Base
            Servicing Fee (including any unpaid Base Servicing Fees from one or
            more prior Collection Periods);

                  (iv) on a pro rata basis (based on the amounts distributable
            pursuant to this clause to each such Class), to the Class A-1
            Noteholders, the Noteholders' Interest Distributable Amount for such
            Class, to the Class A-2 Noteholders, the Noteholders' Interest
            Distributable Amount for such Class, to the Class A-3 Noteholders,
            the Noteholders' Interest Distributable Amount for such Class, and
            to the Class A-4 Noteholders, the Noteholders' Interest
            Distributable Amount for such Class; such amounts to be paid from
            Available Amounts (after giving effect to any reduction in Available
            Amounts described in clause (iii) above);

                  (v) to the Class A-1 Noteholders, until the total amount paid
            to such Noteholders in respect of principal from the Closing Date is
            equal to the Original Principal Amount for the Class A-1 Notes, such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii) and
            (iv) above);

                  (vi) to the Class A-2 Noteholders, until the total amount paid
            to such Noteholders in respect of principal from the Closing Date is
            equal to the Original Principal Amount for the Class A-2 Notes, such
            amounts to be paid from Available Amounts (after giving effect to
            any reduction in Available Amounts described in clauses (iii)
            through (v) above);

                  (vii) to the Class A-3 Noteholders, until the total amount
            paid to such Noteholders in respect of principal from the Closing
            Date is equal to the Original Principal Amount for the Class A-3
            Notes, such amounts to be paid from Available Amounts (after giving
            effect to any reduction in Available Amounts described in clauses
            (iii) through (vi) above);

                  (viii) to the Class A-4 Noteholders, until the total amount
            paid to such Noteholders in respect of principal from the Closing
            Date is equal to the Original Principal Amount for the Class A-4
            Notes, such amounts to be paid from Available Amounts (after giving
            effect to the reduction in Available Amounts described in clauses
            (iii) through (vii) above);

                  (ix) on the Distribution Date on which the Notes have been
            paid in full and on each Distribution Date thereafter, to the
            Certificateholders, or, to the extent amounts are payable to a Swap
            Counterparty pursuant to a Swap Agreement as described in Section
            5.11, to such Swap Counterparty, until the total amount paid to the

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       42
<PAGE>

            Certificateholders in respect of principal from the Closing Date is
            equal to the Original Certificate Balance, such amount to be paid
            from Available Amounts (after giving effect to the reduction in
            Available Amounts described in clauses (iii) through (viii) above);
            and

                  (x) any Available Amounts remaining after giving effect to the
            foregoing, to the Seller.

            (f) For purposes of determining whether an Event of Default pursuant
      to Section 5.01(b) of the Indenture has occurred, the amount of principal
      required to be paid to the Holders of any Class of Notes on any
      Distribution Date is the amount available to be paid thereto pursuant to
      Section 5.06(c); provided, however, that (i) the Class A-1 Notes are
      required to be paid in full on or before the Final Scheduled Distribution
      Date for such Class, meaning that the Class A-1 Noteholders are entitled
      to have received on or before such date payments in respect of principal
      in an aggregate amount equal to the Original Principal Amount for such
      Class, together with all interest accrued thereon through such date; (ii)
      the Class A-2 Notes are required to be paid in full on or before the Final
      Scheduled Distribution Date for such Class, meaning that the Class A-2
      Noteholders are entitled to have received on or before such date payments
      in respect of principal in an aggregate amount equal to the Original
      Principal Amount for such Class, together with all interest accrued
      thereon through such date; (iii) the Class A-3 Notes are required to be
      paid in full on or before the Final Scheduled Distribution Date for such
      Class, meaning that the Class A-3 Noteholders are entitled to have
      received on or before such date payments in respect of principal in an
      aggregate amount equal to the Original Principal Amount for such Class,
      together with all interest accrued thereon through such date; and (iv) the
      Class A-4 Notes are required to be paid in full on or before the Final
      Scheduled Distribution Date for such Class, meaning that the Class A-4
      Noteholders are entitled to have received on or before such date payments
      in respect of principal in an aggregate amount equal to the Original
      Principal Amount for such Class, together with all interest accrued
      thereon through such date.

            (g) Except with respect to the final payment upon retirement of a
      Note or Certificate, the Servicer shall on each Distribution Date instruct
      the Relevant Trustee to pay or distribute to each Securityholder of record
      on the related Record Date by check mailed to such Securityholder at the
      address of such Holder appearing in the Certificate Register or Note
      Register, as the case may be (or, if DTC, its nominee or a Clearing Agency
      is the relevant Holder, by wire transfer of immediately available funds or
      pursuant to other arrangements), the amount to be paid or distributed to
      such Securityholder pursuant to such Holder's Note or Certificate. With
      respect to the final payment upon retirement of a Note or Certificate, the
      Servicer shall on the relevant final Distribution Date instruct the
      Relevant Trustee to pay or distribute the amounts due thereon only upon
      delivery for cancellation of the certificate representing such Note or
      Certificate in accordance with the Indenture or the Trust Agreement, as
      the case may be.

      SECTION 5.07 Reserve Account.

            (a) In order to assure that certain amounts will be available to
      make required payments to Noteholders, the Seller will, pursuant to the
      Securities Account Control

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       43
<PAGE>

      Agreement, establish and maintain with the Securities Intermediary a
      segregated trust account (the "Reserve Account") in the name of the
      Indenture Trustee which will include the money and other property
      deposited and held therein pursuant to Sections 5.06(c), 5.06(d), 5.06(e)
      and this Section 5.07. On or prior to the Closing Date, the Seller shall
      deposit an amount equal to the Reserve Account Initial Deposit into the
      Reserve Account. As, and to the extent, set forth in Section 5.06(c), the
      Relevant Trustee will deposit Available Amounts into the Reserve Account
      on each Distribution Date as provided in the Servicer's Certificate, until
      the amount on deposit therein equals the Specified Reserve Account
      Balance. On each Distribution Date, to the extent that amounts in the
      Collection Account and/or Available Amounts, as the case may be, are
      insufficient to fully fund the payments and distributions described in
      clauses (i) through (vi) of Section 5.06(c), clauses (i) through (vii) of
      Section 5.06(d), or clauses (i) through (viii) of Section 5.06(e), the
      Relevant Trustee will withdraw amounts then on deposit in the Reserve
      Account, up to the amounts of any such deficiencies, and deposit such
      amounts into the Collection Account for application pursuant to such
      clauses. On each Distribution Date, as provided in the Servicer's
      Certificate, the Relevant Trustee will release to the Seller any amounts
      remaining on deposit in the Reserve Account in excess of the Specified
      Reserve Account Balance. Upon the payment in full of the Notes under the
      Indenture, as directed in writing by the Servicer, the Relevant Trustee
      will release to the Seller any amounts remaining on deposit in the Reserve
      Account, and all rights to the Reserve Account and all other collateral
      registered or held therein shall revert to the Seller in accordance with
      the Securities Account Control Agreement. Upon any such distribution to
      the Seller, the Issuer, Owner Trustee, Certificateholders, Indenture
      Trustee and Noteholders will have no further rights in, or claims to, such
      amounts.

            (b) All amounts held in the Reserve Account shall be invested by the
      Relevant Trustee, as directed in writing by the Servicer, in Eligible
      Investments; provided that if (x) the Servicer shall have failed to give
      investment directions for any funds on deposit in the Reserve Account to
      the Indenture Trustee by 5:00 p.m. Eastern Time (or such other time as may
      be agreed by the Servicer and the Indenture Trustee) on any Business Day,
      or (y) a Default or Event of Default shall have occurred and be continuing
      with respect to the Notes but the Notes shall not have been declared due
      and payable pursuant to the Indenture, or (z) the Notes shall have been
      declared due and payable following an Event of Default, but amounts
      collected or receivable from the Trust Estate are being applied pursuant
      to Section 5.05 of the Indenture as if there had not been such a
      declaration, then the Indenture Trustee shall, to the fullest extent
      practicable, invest and reinvest funds in the Reserve Account in one or
      more Eligible Investments specified in clauses (i), (iv) or (vi) of the
      definition of Eligible Investments. All such Eligible Investments shall
      mature not later than the Business Day preceding the next Distribution
      Date, in such manner that such amounts invested shall be available to make
      the required deposits on the Distribution Date; provided that if permitted
      by the Rating Agencies, monies on deposit therein may be invested in
      Eligible Investments that mature later than the Business Day preceding the
      next Distribution Date. The Servicer will not direct the Relevant Trustee
      to make any investment of any funds or to sell any investment held in the
      Reserve Account unless the security interest granted and perfected in such
      account will continue to be perfected in such investment or the proceeds
      of such sale, in either case without any further action by any Person,
      and, in connection with any direction to the Relevant

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       44
<PAGE>

      Trustee to make any such investment or sale, if requested by the Relevant
      Trustee, the Servicer shall deliver to the Relevant Trustee an Opinion of
      Counsel, acceptable to the Relevant Trustee, to such effect. Earnings, if
      any, on investment of funds in the Reserve Account shall be paid to the
      Seller, and losses and any investment expenses shall be charged against
      the funds on deposit therein. The Relevant Trustee shall incur no
      liability for the selection of investments or for losses thereon absent
      its own negligence or willful misfeasance. The Relevant Trustee shall have
      no liability in respect of losses incurred as a result of the liquidation
      of any investment prior to its stated maturity date or the failure of the
      Servicer to provide timely written investment directions.

            (c) Subject to the right of the Relevant Trustee to make withdrawals
      therefrom, as directed by the Servicer, for the purposes and in the
      amounts set forth in Section 5.06 and 5.07(a), the Reserve Account and all
      funds held therein shall be the property of the Seller and not the
      property of the Issuer, the Owner Trustee or the Indenture Trustee. The
      Issuer, the Owner Trustee, the Seller and the Indenture Trustee will treat
      the Reserve Account, all funds therein and all net investment income with
      respect thereto as assets of the Seller for federal income tax and all
      other purposes.

            (d) The Seller hereby grants to the Owner Trustee and the Indenture
      Trustee for the benefit of the Noteholders a security interest in the
      Reserve Account and all funds (including Eligible Investments) in the
      Reserve Account (including the Reserve Account Initial Deposit) and the
      proceeds thereof to secure the payment of interest on and principal of the
      Notes, and the Owner Trustee and the Indenture Trustee shall have all of
      the rights of a secured party under the UCC with respect thereto; provided
      that all income from the investment of funds in the Reserve Account, and
      the right to receive such income are retained by the Seller and are not
      transferred, assigned or otherwise conveyed hereunder. If for any reason
      the Reserve Account is no longer an Eligible Deposit Account, the Relevant
      Trustee shall promptly cause the Reserve Account to be moved to another
      institution or otherwise changed so that the Reserve Account becomes an
      Eligible Deposit Account.

            (e) Neither the Owner Trustee nor the Indenture Trustee shall enter
      into any subordination or intercreditor agreement with respect to the
      Reserve Account.

      SECTION 5.08 Yield Supplement Account.

            (a) In order to assure that sufficient amounts to make required
      distributions of interest to Noteholders will be available, the Owner
      Trustee will, pursuant to the Securities Account Control Agreement and the
      Yield Supplement Agreement, establish and maintain with the Securities
      Intermediary a segregated trust account (the "Yield Supplement Account")
      in the name of the Indenture Trustee which will include the money and
      other property deposited and held therein pursuant to the Yield Supplement
      Agreement and this Section 5.08.

            (b) On or prior to the Closing Date, the Seller shall make a capital
      contribution to the Trust by depositing an amount equal to the Initial
      Yield Supplement Amount into the Yield Supplement Account pursuant to the
      Yield Supplement

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      Agreement. On each Distribution Date, to the extent amounts then on
      deposit in the Yield Supplement Account are sufficient therefor, the
      Relevant Trustee will withdraw amounts then on deposit in the Yield
      Supplement Account in an amount equal to the Yield Supplement Deposit with
      respect to such Distribution Date and deposit such amounts into the
      Collection Account for application pursuant to Section 5.06. On each
      Distribution Date, if the amount on deposit in the Yield Supplement
      Account (after giving effect to all deposits thereto or withdrawals
      therefrom on such Distribution Date) is greater than the Required Yield
      Supplement Amount, the Relevant Trustee will deposit such excess into the
      Collection Account for distribution by the Relevant Trustee in accordance
      with the terms of Section 5.06(c). Upon payment in full of the Notes under
      the Indenture, as directed in writing by the Servicer, the Indenture
      Trustee will release any amounts remaining on deposit in the Yield
      Supplement Account, and all rights to the Yield Supplement Account and all
      other collateral registered or held therein to the Seller.

            (c) All amounts held in the Yield Supplement Account shall be
      invested by the Relevant Trustee, as directed in writing by the Servicer,
      in Eligible Investments; provided that if (x) the Servicer shall have
      failed to give investment directions for any funds on deposit in the Yield
      Supplement Account to the Indenture Trustee by 5:00 p.m. Eastern Time (or
      such other time as may be agreed by the Servicer and the Indenture
      Trustee) on any Business Day, or (y) a Default or Event of Default shall
      have occurred and be continuing with respect to the Notes but the Notes
      shall not have been declared due and payable pursuant to the Indenture, or
      (z) the Notes shall have been declared due and payable following an Event
      of Default, but amounts collected or receivable from the Trust Estate are
      being applied pursuant to Section 5.05 of the Indenture as if there had
      not been such a declaration, then the Indenture Trustee shall, to the
      fullest extent practicable, invest and reinvest funds in the Yield
      Supplement Account in one or more Eligible Investments specified in
      clauses (i), (iv) or (vi) of the definition of Eligible Investments. All
      such Eligible Investments shall mature not later than the Business Day
      preceding the next Distribution Date, in such manner that such amounts
      invested shall be available to make the required deposits on the
      Distribution Date; provided, that if permitted by the Rating Agencies,
      monies on deposit therein may be invested in Eligible Investments that
      mature later than the Business Day preceding the next Distribution Date.
      The Servicer will not direct the Relevant Trustee to make any investment
      of any funds or to sell any investment held in the Yield Supplement
      Account unless the security interest granted and perfected in such account
      will continue to be perfected in such investment or the proceeds of such
      sale, in either case without any further action by any Person, and, in
      connection with any direction to the Relevant Trustee to make any such
      investment or sale, if requested by the Relevant Trustee, the Servicer
      shall deliver to the Relevant Trustee an Opinion of Counsel, acceptable to
      the Relevant Trustee, to such effect. Earnings, if any, on investment of
      funds in the Yield Supplement Account shall be deposited in the Collection
      Account on each Distribution Date, and losses and any investment expenses
      shall be charged against the funds on deposit therein. The Relevant
      Trustee shall incur no liability for the selection of investments or for
      losses thereon absent its own negligence or willful misfeasance. The
      Relevant Trustee shall have no liability in respect of losses incurred as
      a result of the liquidation of any investment prior to its stated maturity
      date or the failure of the Servicer to provide timely written investment
      directions.

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<PAGE>

            (d) The Trust, the Owner Trustee, the Seller and the Indenture
      Trustee will treat the Yield Supplement Account, all funds therein and all
      net investment income with respect thereto as assets of the Trust for
      federal income tax and all other purposes.

            (e) Pursuant to the Yield Supplement Agreement and the Securities
      Account Control Agreement, the Trust will grant to the Indenture Trustee,
      for the benefit of the Noteholders, a security interest in all funds
      (including Eligible Investments) in the Yield Supplement Account
      (including the Initial Yield Supplement Amount) and the proceeds thereof
      to secure the payment of interest on the Notes, and the Indenture Trustee
      shall have all of the rights of a secured party under the UCC with respect
      thereto. If for any reason the Yield Supplement Account is no longer an
      Eligible Deposit Account, the Relevant Trustee shall promptly cause the
      Yield Supplement Account to be moved to another institution or otherwise
      changed so that the Yield Supplement Account becomes an Eligible Deposit
      Account.

            (f) Neither the Owner Trustee nor the Indenture Trustee shall enter
      into any subordination or intercreditor agreement with respect to the
      Yield Supplement Account.

      SECTION 5.09 Statements to Certificateholders and Noteholders.

            (a) On each Distribution Date, the Indenture Trustee shall include
      with each distribution to each Noteholder and the Owner Trustee shall
      include with each distribution to each Certificateholder a statement
      (which statement shall also be provided to each Rating Agency) based on
      information in the Servicer's Certificate furnished pursuant to Section
      4.08, setting forth for the Collection Period relating to such
      Distribution Date the following information:

                  (i) the amount of the payment allocable to the principal
            amount of each Class of Notes and to the Certificate Balance;

                  (ii) the amount of the payment allocable to interest on or
            with respect to each Class of Notes;

                  (iii) the amount of the distribution allocable to the Yield
            Supplement Deposit, if any, plus reinvestment income, if any, on the
            Yield Supplement Account;

                  (iv) the Pool Balance as of the close of business on the last
            day of the related Collection Period;

                  (v) the amount of the Base Servicing Fee paid to the Servicer
            with respect to the related Collection Period, the amount of any
            unpaid Base Servicing Fees and the change in such amount from that
            of the prior Distribution Date;

                  (vi) the Noteholders' Interest Carryover Shortfall and the
            Noteholders' Principal Carryover Shortfall, if any, with respect to
            each Class of Notes, and the change in such amounts from the
            preceding Distribution Date;

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<PAGE>

                  (vii) the Outstanding Amount, the Note Factor and the Note
            Pool Factor with respect to each Class of Notes, and the Certificate
            Balance, the Certificate Factor and the Certificate Pool Factor with
            respect to the Certificates, in each case after giving effect to all
            payments in respect of principal on such Distribution Date;

                  (viii) the amount of Advances made in respect of the
            Receivables during the related Collection Period and the amount of
            unreimbursed Advances on such Distribution Date;

                  (ix) the balance of the Reserve Account and the Yield
            Supplement Account on such Distribution Date, after giving effect to
            changes thereto on such Distribution Date and the amount of such
            changes;

                  (x) the amount of defaults and net losses on the Receivables
            for the related Collection Period; and

                  (xi) the number of delinquencies on the Receivables as a
            percentage of the number of Receivables.

            (b) Copies of such statements may be obtained by the
      Certificateholders or the Note Owners from the Owner Trustee or the
      Indenture Trustee, as the case may be, by a request in writing. The Owner
      Trustee or the Indenture Trustee, as the case may be, shall provide such
      copies promptly after such requests.

      SECTION 5.10 Net Deposits. So long as NMAC is the Servicer, the Servicer
(in whatever capacity) may make the remittances pursuant to Sections 5.02 and
5.05 above net of amounts to be distributed to the Servicer (in whatever
capacity) pursuant to Section 5.06. Accounts between the Seller and the Servicer
will be adjusted accordingly. Nonetheless, the Servicer shall account for all of
the above described remittances and distributions (except for the Supplemental
Servicing Fee to the extent that the Servicer is entitled to retain such
amounts) in the Servicer's Certificate as if the amounts were deposited and/or
transferred separately.

      SECTION 5.11 Swap Agreement. Pursuant to the Trust Agreement, the Issuer
may, from time to time, as directed by the Certificateholders by means of notice
to the Administrator, enter into a currency Swap Agreement with a Swap
Counterparty to swap amounts payable to Certificateholders from U.S. dollars to
Japanese yen; provided, that (1) at the time the Issuer enters into the Swap
Agreement, the rating agencies have confirmed the then-existing ratings of the
Notes, and (2) any payments to the Swap Counterparty (including termination
payments) are payable only from amounts that are otherwise payable to the
Certificateholders. Any payments received by the Issuer from the Swap
Counterparty under such a Swap Agreement shall not be deposited in the
Collection Account and shall be paid by the Indenture Trustee directly to or to
the order of the Certificateholders on the related Distribution Date. In
connection with executing any such Swap Agreement, the Issuer, Indenture
Trustee, Owner Trustee, Seller and Servicer will enter into an amendment to this
Sale and Servicing Agreement, subject to Section 10.01 in a form approved by the
Certificateholders, that will specify the creation of any necessary accounts

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<PAGE>

and modifications of any provisions hereof to the extent necessary or
appropriate to effectuate the intention of such Swap Agreement.

                                   ARTICLE VI

                                   The Seller

      SECTION 6.01 Representations of Seller. The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date, and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

            (a) Organization and Good Standing. The Seller has been duly
      organized and is validly existing as a corporation in good standing under
      the laws of the State of Delaware, with corporate power and authority to
      own its properties and to conduct its business as such properties are
      currently owned and such business is presently conducted, and had at all
      relevant times, and has, corporate power, authority and legal right to
      acquire and own the Receivables. The location of the Seller's chief
      executive office and principal place of business is Torrance, California.

            (b) Due Qualification. The Seller is duly qualified to do business
      as a foreign corporation in good standing, and has obtained all necessary
      licenses and approvals in all jurisdictions in which the ownership or
      lease of property or the conduct of its business shall require such
      qualifications and where the failure to so qualify would have a material
      adverse effect on the ability of the Seller to perform its obligations
      under this Agreement.

            (c) Power and Authority. The Seller has the corporate power and
      authority to execute and deliver this Agreement and to carry out its
      terms. The Seller has full power and authority to sell and assign the
      property to be sold and assigned to and deposited as part of the Owner
      Trust Estate, and has duly authorized such sale and assignment to the
      Trust by all necessary corporate action; and the execution, delivery and
      performance of this Agreement has been duly authorized by the Seller by
      all necessary corporate action.

            (d) Valid Sale; Binding Obligations. This Agreement evidences a
      valid sale, transfer and assignment of the Receivables, enforceable
      against creditors of and purchasers from the Seller (other than a good
      faith purchaser for value in the ordinary course of business who takes
      actual possession of one or more Receivables); and this Agreement is a
      legal, valid and binding obligation of the Seller enforceable in
      accordance with its terms, subject to the effect of bankruptcy,
      insolvency, reorganization, moratorium or other similar laws affecting
      creditors' rights generally and by general equitable principles.

            (e) No Violation. The consummation of the transactions contemplated
      by this Agreement and the fulfillment of the terms hereof do not conflict
      with, result in any breach of any of the terms and provisions of, nor
      constitute (with or without notice or lapse of time) a default under, the
      certificate of incorporation or by-laws of the Seller, or

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<PAGE>

      any indenture, agreement or other instrument to which the Seller is a
      party or by which it shall be bound; nor result in the creation or
      imposition of any Lien upon any of its properties pursuant to the terms of
      any such indenture, agreement or other instrument (other than the Basic
      Documents); nor violate any law or, to the best of the Seller's knowledge,
      any order, rule or regulation applicable to the Seller of any court or of
      any federal or state regulatory body, administrative agency or other
      governmental instrumentality having jurisdiction over the Seller or its
      properties; which breach, default, conflict, Lien or violation in any case
      would have a material adverse effect on the ability of the Seller to
      perform its obligations under this Agreement.

            (f) No Proceedings. There are no proceedings or investigations
      pending, or, to the best of the Seller's knowledge, threatened, before any
      court, regulatory body, administrative agency or other governmental
      instrumentality having jurisdiction over the Seller or its properties: (i)
      asserting the invalidity of this Agreement, the Trust Agreement, the
      Indenture, the Securities Account Control Agreement, the Yield Supplement
      Agreement, the Certificates or the Notes; (ii) seeking to prevent the
      issuance of the Certificates or the Notes or the consummation of any of
      the transactions contemplated by this Agreement, the Trust Agreement, the
      Indenture, the Securities Account Control Agreement or the Yield
      Supplement Agreement; (iii) seeking any determination or ruling that would
      materially and adversely affect the performance by the Seller of its
      obligations under, or the validity or enforceability of, this Agreement,
      the Trust Agreement, the Indenture, the Securities Account Control
      Agreement, the Yield Supplement Agreement, the Certificates or the Notes;
      or (iv) relating to the Seller and that would adversely affect the federal
      or any state income tax attributes of the Issuer, the Certificates or the
      Notes.

      SECTION 6.02 Additional Covenants of the Seller.

            (a) The Seller agrees with the Certificateholders, the Note Owners
      and each Rating Agency that the Seller shall not issue any securities or
      deposit assets into a trust that issues any securities, the issuance of
      which could reasonably be expected to materially and adversely affect the
      rating of any Class of Notes unless it shall have first obtained the
      written consent of each Rating Agency to the effect that such issuance
      will not materially adversely affect such rating; provided that, the
      issuance of another series of certificates or notes pursuant to agreements
      with terms substantially similar to the terms of the Basic Documents shall
      not be deemed to materially and adversely affect the ratings on the Notes.
      The Seller shall provide a copy of any such consent to the Owner Trustee
      and the Indenture Trustee.

            (b) The Seller shall not do any of the following (without the prior
      written consent of each Rating Agency (other than Moody's) (which consent
      shall be to the effect that the acts set forth below shall not affect
      materially adversely the rating on any Class of Notes) and, upon the
      Seller's receipt of such written consent from each Rating Agency (other
      than Moody's), the Owner Trustee and the Indenture Trustee shall, without
      any exercise of its own discretion, also provide its written consent to
      the Seller (promptly after the occurrence of any of the following, the
      Seller shall provide notice of such occurrence to Moody's, so long as
      Moody's is then rating any outstanding Notes)):

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

                  (1) engage in any business or activity other than those set
            forth in Article Three of the Seller's Certificate of Incorporation,
            as amended;

                  (2) incur any indebtedness, or assume or guaranty any
            indebtedness of any other entity, other than (A) any indebtedness
            incurred in connection with the issuance of any certificates or
            notes (as defined in the Seller's Certificate of Incorporation),
            provided that any such future indebtedness incurred in connection
            with the issuance of any certificates or notes must be rated at
            least with the same ratings given the outstanding certificates or
            notes secured or supported by assets acquired by the Seller from
            NMAC by each nationally recognized statistical rating organization
            that has rated such outstanding certificates or notes or, prior to
            the issuing of such future indebtedness incurred in connection with
            such certificates or notes, the Seller shall have received
            confirmation from each nationally recognized statistical rating
            organization that has rated such outstanding certificates or notes
            that the ratings of such outstanding certificates or notes will not
            be adversely affected by the issuance of such future indebtedness;
            and (B) (i) any indebtedness to NMAC or any of its Affiliates
            incurred in connection with the acquisition of receivables, which
            indebtedness shall be fully subordinated (and which shall provide
            for payment only after payment in respect of all outstanding rated
            debt) and nonrecourse against any assets of the Seller other than
            the assets pledged to secure such indebtedness, (ii) such
            indebtedness does not constitute a claim against the Seller in the
            event the assets pledged to secure such indebtedness are
            insufficient to pay such indebtedness, (iii) holders of such
            indebtedness agree that they have no rights in any assets of the
            Seller other than the assets pledged to secure such indebtedness,
            and (iv) to the extent that any holder of such indebtedness is
            deemed to have any interest in any assets of the Seller other than
            the assets pledged to secure such indebtedness, holders of such
            indebtedness agree that their interest is subordinate to claims or
            rights of holders of other indebtedness issued by the Seller, and
            that such agreement constitutes a subordination agreement for
            purposes of Section 510(a) of the Bankruptcy Code;

                  (3) dissolve or liquidate, in whole or in part, consolidate or
            merge with or into any other entity or convey or transfer its
            properties and assets substantially as an entirety to any entity,
            unless:

                              (i) the entity (if other than the Seller) formed
                  or surviving the consolidation or merger or which acquires the
                  properties and assets of the Seller is organized and existing
                  under the laws of the State of Delaware, expressly assumes the
                  due and punctual payment of all obligations of the Seller,
                  including those obligations of the Seller under this Agreement
                  and the Basic Documents, and has a Certificate of
                  Incorporation containing provisions identical to the
                  provisions of Article Three, Article Four and Article Fifteen
                  of the Seller's Certificate of Incorporation, as amended;

                              (ii) immediately after giving effect to the
                  transaction, no default or event of default has occurred and
                  is continuing under any indebtedness of the Seller or any
                  agreements relating to such indebtedness;

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

                              (iii) the entity (if other than the Seller) formed
                  or surviving the consolidation or merger or which acquires the
                  properties and assets of the Seller agrees that (i) it shall
                  maintain its funds or assets as identifiable and not commingle
                  its funds or assets with those of any direct or ultimate
                  parent of such entity and pay from its assets all obligations
                  and indebtedness of any kind incurred by it, (ii) it shall
                  maintain bank accounts, corporate records and books of account
                  separate from those of any direct or ultimate parent of such
                  entity and (iii) the business affairs of such entity will be
                  managed by or under the direction of its board of directors
                  and it will conduct its business from an office space separate
                  from any direct or ultimate parent of such entity; and

                              (iv) each nationally recognized statistical rating
                  organization that has rated any issue of certificates or notes
                  secured or supported by assets acquired by the Seller from
                  NMAC shall confirm in writing that the rating of such
                  certificates or notes shall not be adversely affected by such
                  consolidation or merger;

                  (4) without the affirmative vote of 100% of the members of the
            board of directors of the Seller, institute proceedings to be
            adjudicated bankrupt or insolvent, or consent to the institution of
            bankruptcy or insolvency proceedings against it, or file a petition
            seeking or consent to reorganization or relief under any applicable
            federal or state law relating to bankruptcy, or consent to the
            appointment of a receiver, liquidator, assignee, trustee,
            sequestrator (or other similar official) of the corporation or all
            or substantially all of its property, or make any assignment for the
            benefit of creditors;

                  (5) cease to have an "Independent Director," as defined in the
            Seller's charter;

                  (6) without the affirmative vote of at least one "Independent
            Director," as defined in the Seller's charter, enter into any
            transactions with the Servicer not in the ordinary course of
            business; or

                  (7) modify any provision of the "Restricted Articles," as
            defined in the Seller's Certificate of Incorporation, of the
            Seller's Certificate of Incorporation, as amended, in any material
            respect.

      SECTION 6.03 Liability of 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.

            (a) The Seller shall indemnify, defend and hold harmless the Trust,
      the Owner Trustee, the Indenture Trustee from and against any taxes that
      may at any time be asserted against any such Person with respect to, as of
      the date hereof, the sale of the Receivables to the Trust or the issuance
      and original sale of the Notes and the Certificates, including any sales,
      gross receipts, general corporation, tangible personal property, privilege
      or license taxes (but, in the case of the Trust, not including any taxes

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

      asserted with respect to ownership of the Receivables or federal or other
      income taxes arising out of the transactions contemplated by this
      Agreement and the Basic Documents) and costs and expenses in defending
      against the same.

            (b) The Seller shall indemnify, defend and hold harmless the Owner
      Trustee and the Indenture Trustee, the Trust, the Certificateholders and
      the Noteholders from and against any loss, liability or expense incurred
      by reason of (i) the Seller's willful misfeasance, bad faith or negligence
      in the performance of its duties under this Agreement, or by reason of
      reckless disregard of its obligations and duties under this Agreement, and
      (ii) the Seller's or the Issuer's violation of federal or state securities
      laws in connection with the registration or the sale of the Certificates
      and the Notes.

      Indemnification under this Section 6.03 shall survive the termination of
this Agreement and shall include reasonable fees and expenses of counsel and
expenses of litigation. If the Seller shall have made any indemnity payment to
any Person entitled thereto pursuant to this Section 6.03 and such Person
thereafter shall collect any of such amounts from others, such Person shall
promptly repay such amounts to the Seller, without interest (except to the
extent the recipient collects interest from others).

      Promptly after receipt by a party indemnified under this Section 6.03 (for
purposes of this paragraph, an "Indemnified Party") of notice of the
commencement of any action, such Indemnified Party will, if a claim is to be
made in respect thereof against the Seller under this Section 6.03, notify the
Seller of the commencement thereof. If any such action is brought against any
Indemnified Party under this Section 6.03 and it notifies the Seller of the
commencement thereof, the Seller will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is, a conflict of interest, be counsel to the Seller), and the Seller will not
be liable to such Indemnified Party under this Section 6.03 for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 6.03 shall survive the termination of this
Agreement or the resignation or removal of the Owner Trustee or the Indenture
Trustee and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Seller shall have made any indemnity payments pursuant to
this Section 6.03 and the Person to or on behalf of whom such payments are made
thereafter collects any of such amounts from others, such Person shall promptly
repay such amounts to the Seller, without interest (except to the extent
received by such Person).

      SECTION 6.04 Merger or Consolidation of, or Assumption of the Obligations
of, Seller. Subject to Section 6.02, any Person (i) into which the Seller may be
merged or consolidated, (ii) resulting from any merger, conversion or
consolidation to which the Seller shall be a party, (iii) succeeding to the
business of the Seller or (iv) that is a corporation more than 50% of the voting
stock of which is owned directly or indirectly by Nissan, 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; provided,
however, that (x) immediately after giving effect to such transaction, no
representation or warranty made pursuant to Section 6.01 shall have been
breached and no

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<PAGE>

Servicer Default, and no event that, after notice or lapse of time, or both,
would become a Servicer Default, shall have occurred and be continuing, (y) the
Seller shall have delivered to the Owner Trustee and the Indenture Trustee an
Officer's Certificate stating that such consolidation, merger or succession and
such agreement or assumption comply with this Section 6.04 and that all
conditions precedent, if any, provided for in this Agreement relating to such
transaction have been complied with and (z) the Seller shall have delivered to
the Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A)
stating that, in the opinion of such counsel, based on customary qualifications
and assumptions, all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary fully to
perfect 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 shall be necessary to preserve
and protect such interest. The Seller shall provide notice of any merger,
consolidation or succession pursuant to this Section 6.04 to each Rating Agency.
Notwithstanding anything herein to the contrary, the execution of the foregoing
agreement of assumption and compliance with clauses (x), (y) and (z) above shall
be conditions to the consummation of the transactions referred to in clauses
(i), (ii), (iii) or (iv) above.

      SECTION 6.05 Limitation on Liability of Seller and Others.

            (a) Neither the Seller nor any of the directors, officers, employees
      or agents of the Seller shall be under any liability to the Trust, the
      Certificateholders or the Noteholders, 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 shall not protect the Seller or any such
      person against any liability that would otherwise be imposed by reason of
      willful misfeasance, bad faith or negligence in the performance of duties
      or by reason of reckless disregard of obligations and duties under this
      Agreement. The Seller and any director, officer, 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 under this Agreement.

            (b) The Seller shall not be under any obligation to appear in,
      prosecute or defend any legal action that shall not be incidental to its
      obligations under this Agreement, and that in its opinion may cause it to
      incur 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 Certificateholders and the Noteholders
      under this Agreement. In such event, the legal expenses and costs of such
      action and any liability resulting therefrom shall be expenses, costs and
      liabilities of the Servicer, and the Servicer will not be entitled to be
      reimbursed therefor.

      SECTION 6.06 Seller May Own Certificates or Notes. The Seller and any
Affiliate of the Seller may in its individual or any other capacity become the
owner or pledgee of Certificates or Notes with the same rights as it would have
if it were not the Seller or an Affiliate thereof, except as otherwise provided
in the Basic Documents. Certificates or Notes so owned by or pledged to the
Seller or such controlling or commonly controlled Person shall have an equal and
proportionate benefit under the provisions of this Agreement, without
preference, priority or

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<PAGE>

distinction as among all of the Certificates or the Notes, as the case may be,
except as otherwise expressly provided in the Basic Documents.

                                  ARTICLE VII

                                  The Servicer

      SECTION 7.01 Representations of Servicer. The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables. The representations speak as of the execution and delivery of this
Agreement and as of the Closing Date and shall survive the sale of the
Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

            (a) Organization and Good Standing. The Servicer is duly organized
      and is validly existing as a corporation in good standing under the laws
      of the state of its incorporation, with corporate power and authority to
      own its properties and to conduct its business as such properties are
      currently owned and such business is presently conducted, and had at all
      relevant times, and has, corporate power, authority and legal right to
      acquire, own, sell and service the Receivables and to hold the Receivable
      Files as custodian on behalf of the Trust and the Indenture Trustee. The
      location of the Servicer's chief executive office and principal place of
      business is Torrance, California.

            (b) Due Qualification. The Servicer is duly qualified to do business
      as a foreign corporation in good standing, and has obtained all necessary
      licenses and approvals in all jurisdictions in which the ownership or
      lease of property or the conduct of its business relating to the servicing
      of the Receivables as required by this Agreement shall require such
      qualifications and where the failure to so qualify would have a material
      adverse effect on the ability of the Servicer to perform its obligations
      under this Agreement.

            (c) Power and Authority. The Servicer has the power and authority to
      execute and deliver this Agreement and to carry out its terms; and the
      execution, delivery and performance of this Agreement have been duly
      authorized by the Servicer by all necessary corporate action.

            (d) Binding Obligation. This Agreement constitutes a legal, valid
      and binding obligation of the Servicer enforceable in accordance with its
      terms, subject to the effect of bankruptcy, insolvency, reorganization,
      moratorium or other similar laws affecting creditors' rights generally and
      by general equitable principles.

            (e) No Violation. The consummation of the transactions contemplated
      by this Agreement and the fulfillment of the terms hereof do not conflict
      with, result in any breach of any of the terms and provisions of, nor
      constitute (with or without notice or lapse of time) a default under, the
      articles of incorporation or by-laws of the Servicer, or any indenture,
      agreement or other instrument to which the Servicer is a party or by which
      it shall be bound; nor result in the creation or imposition of any Lien
      upon any of its

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      properties pursuant to the terms of any such indenture, agreement or other
      instrument (other than the Basic Documents); nor violate any law or any
      order, rule or regulation applicable to the Servicer of any court or of
      any federal or state regulatory body, administrative agency or other
      governmental instrumentality having jurisdiction over the Servicer or its
      properties; which breach, default, conflict, Lien or violation in any case
      would have a material adverse effect on the ability of the Seller to
      perform its obligations under this Agreement.

            (f) No Proceedings. There are no proceedings or investigations
      pending, or, to the best of the Servicer's knowledge, threatened, before
      any court, regulatory body, administrative agency or other governmental
      instrumentality having jurisdiction over the Servicer or its properties:
      (i) asserting the invalidity of this Agreement, the Trust Agreement, the
      Indenture, the Purchase Agreement, the Certificates or the Notes; (ii)
      seeking to prevent the issuance of the Certificates or the Notes or the
      consummation of any of the transactions contemplated by this Agreement,
      the Trust Agreement, the Indenture or the Purchase Agreement; (iii)
      seeking any determination or ruling that would materially and adversely
      affect the performance by the Servicer of its obligations under, or the
      validity or enforceability of, this Agreement, the Trust Agreement, the
      Indenture, the Purchase Agreement, the Certificates or the Notes; or (iv)
      relating to the Servicer and that would adversely affect the federal or
      any state income tax attributes of the Certificates or the Notes.

      SECTION 7.02 Indemnities of Servicer. The Servicer shall be liable in
accordance herewith only to the extent of the obligations specifically
undertaken by the Servicer under this Agreement:

            (a) The Servicer shall defend, indemnify and hold harmless the Owner
      Trustee, the Indenture Trustee, the Trust, the Certificateholders and the
      Noteholders from and against any and all costs, expenses, losses, damages,
      claims and liabilities (collectively, "Damages") arising out of or
      resulting from the use, ownership or operation by the Servicer or any of
      its Affiliates (other than the Trust) of a Financed Vehicle.

            (b) The Servicer shall indemnify, defend and hold harmless the Owner
      Trustee, the Indenture Trustee, the Trust, the Certificateholders and the
      Noteholders from and against any and all Damages to the extent that such
      Damage arose out of, or was imposed upon, the Owner Trustee, the Indenture
      Trustee, the Trust, the Certificateholders or the Noteholders through the
      negligence, willful misfeasance or bad faith of the Servicer in the
      performance of its duties under this Agreement or by reason of reckless
      disregard of its obligations and duties under this Agreement.

            (c) The Servicer shall indemnify, defend and hold harmless the Owner
      Trustee and the Indenture Trustee from and against all Damages arising out
      of or incurred in connection with the acceptance or performance of the
      trusts and duties herein contained, except to the extent that such Damage:
      (i) shall be due to the willful misfeasance, bad faith, or negligence
      (except for errors in judgment) of the Owner Trustee or the Indenture
      Trustee, as the case may be; (ii) relates to any tax other than the taxes
      with respect to which the Seller shall be required to indemnify the Owner
      Trustee

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      or the Indenture Trustee; (iii) shall arise from the breach by the Owner
      Trustee or the Indenture Trustee of any of their respective
      representations or warranties set forth in the Basic Documents; (iv) shall
      be one as to which the Seller is required to indemnify the Owner Trustee
      or the Indenture Trustee and as to which such Person has received payment
      of indemnity from the Seller; or (v) shall arise out of or be incurred in
      connection with the performance by the Indenture Trustee of the duties of
      Successor Servicer hereunder.

      Promptly after receipt by a party indemnified under this Section 7.02 (for
purposes of this paragraph, an "Indemnified Party") of notice of the
commencement of any action, such Indemnified Party will, if a claim in respect
thereof is to be made against the Servicer under this Section 7.02, notify the
Servicer of the commencement thereof. If any such action is brought against any
Indemnified Party under this Section 7.02 and it notifies the Servicer of the
commencement thereof, the Servicer will assume the defense thereof, with counsel
reasonably satisfactory to such Indemnified Party (who may, unless there is, as
evidenced by an Opinion of Counsel to the Indemnified Party stating that there
is, a conflict of interest, be counsel to the Servicer), and the Servicer will
not be liable to such Indemnified Party under this Section 7.02 for any legal or
other expenses subsequently incurred by such Indemnified Party in connection
with the defense thereof, other than reasonable costs of investigation. The
obligations set forth in this Section 7.02 shall survive the termination of this
Agreement or the resignation or removal of the Servicer, the Owner Trustee or
the Indenture Trustee and shall include reasonable fees and expenses of counsel
and expenses of litigation. If the Servicer shall have made any indemnity
payments pursuant to this Section 7.02 and the Person to or on behalf of whom
such payments are made thereafter collects any of such amounts from others, such
Person shall promptly repay such amounts to the Servicer, without interest
(except to the extent received by such Person).

      Indemnification under this Section 7.02 by NMAC (or any successor thereto
pursuant to Section 7.03) as Servicer, with respect to the period such Person
was the Servicer, shall survive the termination of such Person as Servicer or a
resignation by such Person as Servicer as well as the termination of this
Agreement and shall include reasonable fees and expenses of counsel and expenses
of litigation. If the Servicer shall have made any indemnity payments pursuant
to this Section 7.02 and the recipient thereafter collects any of such amounts
from others, the recipient shall promptly repay such amounts to the Servicer,
without interest (except to the extent the recipient collects interest from
others).

      SECTION 7.03 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 shall be a party, (iii) succeeding to the business of the
Servicer, or (iv) so long as NMAC acts as Servicer, that is a corporation more
than 50% of the voting stock of which is owned directly or indirectly by Nissan,
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; provided, however, that (x) immediately after giving effect to such
transaction, no Servicer Default, and no event which, after notice or lapse of
time, or both, would become a Servicer Default, shall have occurred and be
continuing, (y) the

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Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Officer's Certificate stating that such consolidation, merger or succession and
such agreement of assumption comply with this Section 7.03 and that all
conditions precedent provided for in this Agreement relating to such transaction
have been complied with and (z) the Servicer shall have delivered to the Owner
Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that,
in the opinion of such counsel, based on customary qualifications and
assumptions, 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 in the Receivables,
and reciting the details of such filings, or (B) stating that, in the opinion of
such counsel, no such action shall be necessary to perfect such interest. The
Servicer shall provide notice of any merger, consolidation or succession
pursuant to this Section 7.03 to each Rating Agency. Notwithstanding anything
herein to the contrary, the execution of the foregoing agreement of assumption
and compliance with clauses (x), (y) and (z) above shall be conditions to the
consummation of the transactions referred to in clauses (i), (ii), (iii) or (iv)
above.

      SECTION 7.04 Limitation on Liability of Servicer and Others.

            (a) Neither the Servicer nor any of the directors, officers,
      employees or agents of the Servicer shall be under any liability to the
      Trust, the Certificateholders or the Noteholders, 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 shall not protect the Servicer or any such
      person against any liability that would otherwise be imposed by reason of
      willful misfeasance, bad faith or negligence in the performance of duties
      or by reason of reckless disregard of obligations and duties under this
      Agreement. The Servicer and any director, officer, employee or agent of
      the Servicer 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 under this Agreement.

            (b) Except as provided in this Agreement, the Servicer shall not be
      under any obligation to appear in, prosecute or defend any legal action
      that shall not be incidental to its duties to service the Receivables in
      accordance with this Agreement, and that in its opinion may cause it to
      incur any expense or liability; provided, however, that the Servicer may
      undertake any reasonable action that it may deem necessary or desirable in
      respect of the Basic Documents and the rights and duties of the parties to
      the Basic Documents and the interests of the Certificateholders under this
      Agreement and the Noteholders under the Indenture. In such event, the
      legal expenses and costs of such action and any liability resulting
      therefrom shall be expenses, costs and liabilities of the Servicer, and
      the Servicer will not be entitled to be reimbursed therefor.

      SECTION 7.05 NMAC Not To Resign as Servicer. Subject to the provisions of
Section 7.03, NMAC shall 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 shall no longer be
permissible under applicable law. Notice of any such determination permitting
the resignation of NMAC shall be communicated to the Owner Trustee and the
Indenture Trustee at the earliest practicable time (and, if such communication
is not in

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<PAGE>

writing, shall be confirmed in writing at the earliest practicable time), and
any such determination shall be evidenced by an Opinion of Counsel to such
effect delivered to the Owner Trustee and the Indenture Trustee concurrently
with or promptly after such notice. No such resignation shall become effective
until the Indenture Trustee or a Successor Servicer shall (i) have taken the
actions required by Section 8.01 of this Agreement to effect the termination of
the responsibilities and rights of the predecessor Servicer under this
Agreement, including the transfer to the Successor Servicer for administration
by it of all cash amounts that shall at the time be held by the predecessor
Servicer for deposit, or shall thereafter be received with respect to a
Receivable and the delivery of the Receivable Files, and the related accounts
and records maintained by the Servicer, (ii) have assumed the responsibilities
and obligations of NMAC as Servicer under this Agreement in accordance with
Section 8.02 of this Agreement (other than the initial Servicer's obligation to
make Advances), and (iii) become the Administrator under the Administration
Agreement in accordance with Section 8 of such Agreement.

                                  ARTICLE VIII

                                     Default

      SECTION 8.01 Servicer Default. If any one of the following events (a
"Servicer Default") shall occur and be continuing:

            (a) any failure by the Servicer (or the Seller, so long as NMAC is
      the Servicer) to deliver to the Relevant Trustee for deposit in any of the
      Accounts any required payment or to direct the Relevant Trustee to make
      any required distributions therefrom, which failure continues unremedied
      for a period of three Business Days after (i) receipt by the Servicer (or
      the Seller, so long as NMAC is the Servicer) of written notice of such
      failure given by the Owner Trustee or the Indenture Trustee, (ii) receipt
      by the Servicer (or the Seller, so long as NMAC is the Servicer), the
      Owner Trustee or the Indenture Trustee of written notice of such failure
      given by Holders of Notes evidencing not less than 25% of the Outstanding
      Amount, or (iii) discovery of such failure by any officer of the Servicer;

            (b) any failure by the Servicer (or the Seller, as long as NMAC is
      the Servicer) to duly observe or perform in any material respect any other
      covenants or agreements of the Servicer (or the Seller, as long as NMAC is
      the Servicer) set forth in this Agreement (including its obligation to
      purchase Receivables pursuant to Section 4.06), which failure shall
      materially and adversely affect the rights of the Certificateholders or
      the Noteholders and shall continue unremedied for a period of 90 days
      after giving of written notice of the failure to (i) the Servicer (or the
      Seller, as long as NMAC is the Servicer) by the Owner Trustee or the
      Indenture Trustee, or (ii) the Servicer (or the Seller, as long as NMAC is
      the Servicer) and the Owner Trustee or the Indenture Trustee by Holders of
      Notes evidencing not less than 25% of the Outstanding Amount or Holders of
      Certificates evidencing not less than 25% of the Certificate Balance; or

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<PAGE>

            (c) the occurrence of an Insolvency Event with respect to the
      Servicer;

then, and in each and every case, so long as the Servicer Default shall not have
been remedied, either the Indenture Trustee or the Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes (but excluding for purposes of
such calculation and action all Notes held or beneficially owned by NMAC, NARC
II or any of their Affiliates unless all of the Notes are held or beneficially
owned by NMAC, NARC II or any of their Affiliates), acting together as a single
Class, by notice then given in writing to the Servicer (and to the Indenture
Trustee and the Owner Trustee if given by the Noteholders) may terminate all of
the rights and obligations (other than the obligations set forth in Section 7.02
hereof) of the Servicer under this Agreement. On or after the receipt by the
Servicer of such written notice, all authority and power of the Servicer under
this Agreement, whether with respect to the Notes, the Certificates or the
Receivables or otherwise, shall, without further action, pass to and be vested
in the Indenture Trustee or such Successor Servicer as may be appointed under
Section 8.02; and, without limitation, the Indenture Trustee and the Owner
Trustee are hereby authorized and empowered to execute and deliver, for the
benefit 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 notice of
termination, whether to complete the transfer and endorsement of the Receivables
and related documents, or otherwise. The predecessor Servicer shall cooperate
with the Successor Servicer and the Owner Trustee in effecting the termination
of the responsibilities and rights of the predecessor Servicer under this
Agreement, including, without limitation, the transfer to the Successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or have been deposited by the predecessor
Servicer, in the Accounts or thereafter received with respect to the Receivables
that shall at that time be held by the predecessor Servicer and the delivery of
the Receivable Files and the related accounts and records maintained by the
predecessor Servicer. All reasonable costs and expenses (including attorneys'
fees) incurred in connection with transferring the Receivable Files to the
Successor Servicer and amending this Agreement to reflect such succession as
Servicer pursuant to this Section 8.01 shall be paid by the predecessor Servicer
upon presentation of reasonable documentation of such costs and expenses.
Notwithstanding the foregoing, in the event the predecessor Servicer is the
Indenture Trustee, the original Servicer hereunder shall reimburse the Indenture
Trustee for all reasonable costs and expenses as described in the immediately
preceding sentence. Upon receipt of notice of the occurrence of a Servicer
Default, the Indenture Trustee shall give notice thereof to the Rating Agencies.

      SECTION 8.02 Appointment of Successor.

            (a) Upon the Servicer's receipt of notice of termination pursuant to
      Section 8.01 or the Servicer's resignation in accordance with the terms of
      this Agreement, the predecessor Servicer shall continue to perform its
      functions as Servicer under this Agreement, in the case of termination,
      only until the date specified in such termination notice or, if no such
      date is specified in a notice of termination, until receipt of such notice
      and, in the case of resignation, until the earlier of (i) the date 45 days
      from the delivery to the Owner Trustee and the Indenture Trustee of
      written notice of such resignation (or written confirmation of such
      notice) in accordance with the terms of this Agreement and (ii) the date
      upon which the predecessor Servicer shall become unable to

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<PAGE>

      act as Servicer, as specified in the notice of resignation and
      accompanying Opinion of Counsel. In the event of the Servicer's
      resignation or termination hereunder, the Indenture Trustee shall appoint
      a Successor Servicer, and the Successor Servicer shall accept its
      appointment (including its appointment as Administrator under the
      Administration Agreement as set forth in Section 8.02(b)) by a written
      assumption in form acceptable to the Owner Trustee and the Indenture
      Trustee. If a Successor Servicer has not been appointed at the time when
      the predecessor Servicer has ceased to act as Servicer in accordance with
      this Section 8.02, the Indenture Trustee without further action shall
      automatically be appointed the Successor Servicer and the Indenture
      Trustee shall be entitled to the Total Servicing Fee. Notwithstanding the
      above, the Indenture Trustee shall, if it shall be legally unable so to
      act, appoint or petition a court of competent jurisdiction to appoint, and
      the predecessor Servicer, if no successor Servicer has been appointed at
      the time the predecessor Servicer has ceased to act, may petition a court
      of competent jurisdiction to appoint any established institution having a
      net worth of not less than $100,000,000 and whose regular business shall
      include the servicing of automobile and/or light-duty truck receivables,
      as the successor to the Servicer under this Agreement.

            (b) Upon appointment, the Successor Servicer (including the
      Indenture Trustee acting as Successor Servicer) shall (i) be the successor
      in all respects to the predecessor Servicer and shall be subject to all
      the responsibilities, duties and liabilities arising thereafter relating
      thereto placed on the predecessor Servicer (except the initial Servicer's
      obligation to make Advances) and shall be entitled, subject to the
      arrangements referred to in paragraph (c) below, to the servicing fee and
      all the rights granted to the predecessor Servicer by the terms and
      provisions of this Agreement and (ii) become the Administrator under the
      Administration Agreement in accordance with Section 8 of such Agreement.

            (c) In connection with such appointment, the Issuer may make such
      arrangements for the compensation of such Successor Servicer out of
      payments on Receivables as it and such Successor Servicer shall agree;
      provided, however, that no such compensation shall be in excess of that
      permitted the predecessor Servicer under this Agreement. The Issuer, the
      Indenture Trustee and such Successor Servicer shall take such action,
      consistent with this Agreement, as shall be necessary to effectuate any
      such succession.

      SECTION 8.03 Repayment of Advances. If the Servicer shall resign or be
terminated, the Servicer shall continue to be entitled to receive, to the extent
of available funds, reimbursement for Outstanding Advances pursuant to Sections
5.03 and 5.04 with respect to all Advances previously made thereby.

      SECTION 8.04 Notification Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VIII, the Owner Trustee
shall give prompt written notice thereof to the Certificateholders, and the
Indenture Trustee shall give prompt written notice thereof to Noteholders and
the Rating Agencies.

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<PAGE>

      SECTION 8.05 Waiver of Past Defaults. The Holders of Notes evidencing a
majority of the Outstanding Amount of the Notes, or, in the case of any Servicer
Default which does not adversely affect the Indenture Trustee or the
Noteholders, the Holders of Certificates evidencing a majority of the
Certificate Balance, in each case excluding for purposes of such calculation and
action all Securities held or beneficially owned by NMAC, NARC II or any of
their Affiliates (unless all of the Notes or the Certificates, as the case may
be, are held by NMAC, NARC II and their Affiliates), may, on behalf of all the
Noteholders and the Certificateholders, waive in writing any default by the
Servicer in the performance of its obligations hereunder and its consequences,
except a default in making any required deposits to or payments from the
Collection Account in accordance with this Agreement. Upon any such waiver of a
past default, such default shall cease to exist, and any Servicer Default
arising therefrom shall be deemed to have been remedied for every purpose of
this Agreement. No such waiver shall extend to any subsequent or other default
or impair any right consequent thereto.

                                   ARTICLE IX

                       Termination; Release of Receivables

      SECTION 9.01 Optional Purchase of All Receivables.

            (a) On each Distribution Date following the last day of a Collection
      Period as of which the Pool Balance shall be less than or equal to the
      Optional Purchase Percentage multiplied by the Original Pool Balance, the
      Servicer or any successor to the Servicer shall have the option to
      purchase, or cause to be purchased, the corpus of the Owner Trust Estate
      (whether or not such assets then comprise all or a portion of the Trust
      Estate) for an amount equal to the Optional Purchase Price (the "Optional
      Purchase"). To exercise such option, the Servicer or any successor to the
      Servicer shall notify the Owner Trustee and the Indenture Trustee of its
      intention to do so in writing, no later than the tenth day of the month
      preceding the month in which the Distribution Date as of which such
      purchase is to be effected and shall, on or before the Distribution Date
      on which such purchase is to occur, deposit pursuant to Section 5.05 in
      the Collection Account an amount equal to the Optional Purchase Price (or
      the deposit in cash of such lesser amount as provided in Section 9.01(b)),
      and shall succeed to all interests in and to the Trust Estate and the
      Owner Trust Estate; provided, however, that the Servicer shall not effect
      any such purchase so long as the rating of NMAC by Moody's, or if NMAC
      shall then be unrated by Moody's, then the rating of Nissan Capital of
      America, Inc., is less then "Ba1" by Moody's, unless the Owner Trustee and
      the Indenture Trustee shall have received an Opinion of Counsel to the
      effect that such purchase shall not constitute a fraudulent conveyance,
      subject to such assumptions as to factual matters as may be contained
      therein. Amounts so deposited will be paid and distributed as set forth in
      Section 5.06 of this Agreement. Upon such deposit of the amount necessary
      to purchase the corpus of the Owner Trust Estate, the Servicer shall for
      all purposes of this Agreement be deemed to have released all claims for
      reimbursement of Outstanding Advances made in respect of the Receivables.

            (b) The Servicer, at its option, may pay all or a portion of the
      Optional Purchase Price by issuing a demand note in favor of the Trust,
      the terms of which, on the

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<PAGE>

      whole, shall be commercially reasonable and substantially similar to terms
      that would prevail in an arms-length negotiation between unaffiliated
      parties; provided, however, that (i) the Servicer shall pay in cash the
      portion of the Optional Purchase Price that is equal to or greater than
      the sum of (x) the Outstanding Amount of all Classes of Notes and (y) the
      Noteholders' Interest Distributable Amount for all Classes of Notes for
      such Distribution Date, and (ii) the Servicer may issue a demand note to a
      Certificateholder pursuant to this Section 9.01 only if such
      Certificateholder consents to the receipt of such demand note.

            (c) Notice of any such purchase of the Owner Trust Estate shall be
      given by the Owner Trustee and the Indenture Trustee to each
      Securityholder as soon as practicable after their receipt of notice
      thereof from the Servicer.

            (d) Following the satisfaction and discharge of the Indenture and
      the payment in full of the principal of and interest on the Notes, the
      Certificateholders will succeed to the rights of the Noteholders hereunder
      other than under Section 5.06 and the Issuer will succeed to the rights of
      the Indenture Trustee provided for in this Agreement.

      SECTION 9.02 Release of Receivables.

            (a) Upon repurchase of any Receivable by the Seller pursuant to
      Section 3.02 or by the Servicer pursuant to Section 4.06 or Section 9.01,
      the Issuer and the Indenture Trustee on behalf of the Noteholders, shall,
      without further action, be deemed to transfer, assign, set-over and
      otherwise convey to the Seller or the Servicer, as the case may be, all
      right, title and interest of the Issuer in, to and under such repurchased
      Receivable, all monies due or to become due with respect thereto and all
      proceeds thereof and the other property conveyed to the Issuer hereunder
      pursuant to Section 2.01 with respect to such Receivable, and all security
      and any documents relating thereto, such assignment being an assignment
      outright and not for security; and the Seller or the Servicer, as
      applicable, shall thereupon own each such Receivable, and all such related
      security and documents, free of any further obligation to the Issuer, the
      Owner Trustee, the Certificateholders, the Indenture Trustee or the
      Noteholders with respect thereto.

            (b) The Issuer and Indenture Trustee shall execute such documents
      and instruments of transfer and assignment and take such other actions as
      shall be reasonably requested by the Seller or the Servicer, as the case
      may be, to effect the conveyance of such Receivable pursuant to Sections
      3.02, 4.06 and 9.02.

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      If in any enforcement suit or legal proceeding it is held that the Seller
or the Servicer may not enforce a repurchased Receivable on the ground that it
is not a real party in interest or a holder entitled to enforce the Receivable,
the Issuer, and the Indenture Trustee on behalf of the Noteholders, shall, at
the written direction and expense of the Seller or Servicer, as the case may be,
take such reasonable steps as the Seller or the Servicer deems necessary to
enforce the Receivable, including bringing suit in the name or names of the
Issuer, the Certificateholders or the Noteholders.

      SECTION 9.03 Termination.

            (a) The respective obligations of the Seller, the Servicer, NMAC (so
      long as NMAC has rights or obligations hereunder), the Owner Trustee, and
      the Indenture Trustee, as the case may be, pursuant to this Agreement
      shall terminate upon the earliest of (i) the maturity or other liquidation
      of the last Receivable and the final disposition of all amounts received
      upon liquidation of any remaining Receivables, or (ii) the election by the
      Servicer to purchase the corpus of the Trust as described in Section 9.01
      and the payment or distribution to Securityholders of all amounts required
      to be paid to them under the Indenture or the Trust Agreement, as the case
      may be.

            (b) Notice of any such termination under this Section 9.03 shall be
      given by the Indenture Trustee or the Owner Trustee to each Securityholder
      of record as specified in the Indenture or the Trust Agreement, as
      appropriate.

                                   ARTICLE X

                                  Miscellaneous

      SECTION 10.01 Amendment.

            (a) This Agreement may be amended by the Seller, the Servicer and
      the Issuer, with the consent of the Indenture Trustee, but without the
      consent of any of the Noteholders or the Certificateholders,

                  (1) to cure any ambiguity, correct or supplement any provision
            herein that may be inconsistent with any other provision herein, or
            make any other provisions with respect to matters or questions
            arising hereunder that are not inconsistent with the provisions
            herein; provided that (i) the amendment will not materially and
            adversely affect the interest of any Noteholder or Certificateholder
            and (ii) the Servicer shall have delivered an Officer's Certificate
            to the Indenture Trustee and the Owner Trustee stating that such
            amendment will not materially and adversely affect the interest of
            any Noteholder or Certificateholder; and

                  (2) to change the formula for determining the required amount
            for the Specified Reserve Account Balance upon (i) confirmation from
            each Rating Agency that such amendment will not result in the
            qualification, reduction or withdrawal of any rating it currently
            assigns to any Class of Notes, and (ii) delivery by the Servicer to
            the Indenture Trustee and the Owner Trustee of an

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       64
<PAGE>

            Officer's Certificate stating that such amendment will not
            materially and adversely affect the interest of any Securityholder.

      An amendment will be deemed not to materially and adversely affect the
interests of any Noteholder or Certificateholder of any Class if (x) the
amendment does not adversely affect the Trust's status as a partnership (or, for
any period during which there is not more than one beneficial owner of a
Certificate, the Trust's status as an entity that is disregarded as an entity
separate from the Certificateholder) for federal income tax purposes, (y) each
Rating Agency confirms that that amendment will not result in a reduction or
withdrawal of its rating on the Notes of that Class, and (z) the Servicer has
delivered the Officer's Certificate described in this Section 10.01(a).

            (b) This Agreement may also be amended from time to time by the
      Seller, the Servicer and the Issuer, with the consent of the Indenture
      Trustee and the consent of:

                  (1) the Holders of Notes evidencing a majority of the
            Outstanding Amount of the Notes; or

                  (2) in the case of any amendment that does not adversely
            affect the Indenture Trustee or the Noteholders, the Holders of the
            Certificates evidencing a majority of the outstanding Certificate
            Balance (but excluding for purposes of calculation and action all
            Certificates held by the Seller, the Servicer or any of their
            Affiliates, unless all of the Certificates are held by the Seller,
            the Servicer or any of their Affiliates);

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 those Noteholders or Certificateholders; provided, however,
that no amendment shall:

                  (1) increase or reduce in any manner the amount of, or
            accelerate or delay the timing of, collections of payments on the
            Receivables or distributions that are required to be made for the
            benefit of those Noteholders or Certificateholders or change the
            Interest Rate or the Specified Reserve Account Balance (except as
            described above under clause (2) of subsection (a) above) without
            the consent of each "adversely affected" Noteholder or
            Certificateholder; or

                  (2) reduce the aforesaid percentage of the Outstanding Amount
            of the Notes or Certificate Balance of the Certificates which is
            required to consent to any amendment, without the consent of the
            Holders of all the then outstanding Notes or Certificates.

      An amendment referred to in clause (x) above will be deemed not to
"adversely affect" a Noteholder of any Class only if each Rating Agency confirms
that that amendment will not result in a reduction or withdrawal of its rating
on the Notes of that Class. In connection with any amendment referred to in
clause (x) above, the Servicer shall deliver an Officer's Certificate to the
Indenture Trustee and the Owner Trustee stating that those Noteholders and

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       65
<PAGE>

Certificateholders whose consents were not obtained were not adversely affected
by such amendment.

      Promptly after the execution of any such amendment or consent, the Owner
Trustee shall furnish written notification of the substance of such amendment or
consent to each Certificateholder, the Indenture Trustee and each of the Rating
Agencies.

      It shall not be necessary for the consent of the Certificateholders or
Noteholders pursuant to this Section 10.01 to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

      Prior to the execution of any amendment to this Agreement, the Owner
Trustee and the Indenture Trustee shall be entitled to receive and rely upon an
Opinion of Counsel stating that the execution of such amendment is authorized or
permitted by this Agreement and the Opinion of Counsel referred to in Section
10.02(h)(A). The Owner Trustee and the Indenture Trustee may, but shall not be
obligated to, enter into any such amendment which affects the Owner Trustee's or
the Indenture Trustee's, as applicable, own rights, duties or immunities under
this Agreement or otherwise.

      SECTION 10.02 Protection of Title to Trust.

            (a) The Seller shall execute and file such financing statements and
      cause to be executed and filed such continuation 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 and of the Indenture
      Trustee in the Receivables and in the proceeds thereof. The Seller shall
      deliver (or cause to be delivered) to the Owner Trustee and the Indenture
      Trustee file-stamped copies of, or filing receipts for, any document filed
      as provided above, as soon as available following such filing.

            (b) The Seller and the Servicer shall notify the Owner Trustee and
      the Indenture Trustee within 30 days after any change of its name,
      identity or corporate structure in any manner that would, could or might
      make any financing statement or continuation statement filed in accordance
      with paragraph (a) above seriously misleading within the meaning of
      Section 9-507(c) of the UCC, and shall promptly file appropriate
      amendments to all previously filed financing statements or continuation
      statements.

            (c) Each of the Seller and the Servicer shall notify the Owner
      Trustee and the Indenture Trustee of any relocation of its principal
      executive office or state of incorporation within 30 days after such
      relocation, if, as a result of such relocation, the applicable provisions
      of the UCC would require the filing of any amendment of any previously
      filed financing or continuation statement or of any new financing
      statement and shall promptly file any such amendment or new financing
      statement. The Servicer shall at all times maintain each office from which
      it shall service Receivables, and its principal executive office, within
      the United States of America.

            (d) The Servicer shall 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

                                    (Nissan 2003-A Sale and Servicing Agreement)

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<PAGE>

      (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 its computer systems so that, from
      and after the time of sale under this Agreement of the Receivables to the
      Trust, the Servicer's master computer records that refer to any Receivable
      shall indicate clearly the interest of the Issuer and the Indenture
      Trustee in such Receivable and that such Receivable is owned by the Issuer
      and has been pledged to the Indenture Trustee. Indication of these
      respective interests in a Receivable shall be deleted from or modified on
      the Servicer's computer systems when, and only when, the related
      Receivable shall have become a Liquidated Receivable or been repurchased.

            (f) If at any time the Seller or the Servicer shall propose to sell,
      grant a security interest in, or otherwise transfer any interest in
      automotive 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 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.

            (g) Upon receipt of a written request from the Owner Trustee or the
      Indenture Trustee, which request shall be made no more frequently than
      annually, the Servicer shall furnish to the Owner Trustee or the Indenture
      Trustee, as the case may be, within 20 Business Days after receipt of such
      request, a list of all Receivables (by contract number and name of
      Obligor) then held as part of the Trust, together with a reconciliation of
      the list of Receivables attached hereto as Schedule A and to each of the
      Servicer's Certificates furnished before such request indicating removal
      of Receivables from the Trust. The Servicer shall permit the Indenture
      Trustee and its agents at any time during normal business hours upon
      reasonable prior notice to inspect, audit and make copies of and abstracts
      from the Servicer's records regarding any Receivable.

            (h) The Servicer shall deliver to the Owner Trustee and the
      Indenture Trustee:

                        (A) upon the execution and delivery of this Agreement
                  and of each amendment hereto, an Opinion of Counsel, based on
                  customary assumptions and qualifications, stating that, in the
                  opinion of such counsel, either (A) all financing statements
                  and continuation statements have been executed and filed that
                  are necessary to perfect the interest of the Trust and the
                  Indenture Trustee in the Receivables, and reciting the details
                  of such filings or referring to prior Opinions of Counsel in
                  which such details are given, or (B) no such action shall be
                  necessary to preserve and protect such interest; and

                        (B) if requested by the Indenture Trustee or the Owner
                  Trustee, not more frequently than annually, an Opinion of
                  Counsel, dated as of a date during such 90-day period, either
                  (A) stating that, in the opinion of such counsel, based on
                  customary assumptions and qualifications, all financing
                  statements and

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       67
<PAGE>

                  continuation statements have been executed and filed that are
                  necessary to perfect the interest of the Trust and the
                  Indenture Trustee in the Receivables, and reciting the details
                  of such filings or referring to prior Opinions of Counsel in
                  which such details are given, or (B) no such action shall be
                  necessary to preserve and protect such interest.

                  (i) Each Opinion of Counsel referred to in clause (h)(A) or
            (h)(B) above shall specify any action necessary (as of the date of
            such Opinion of Counsel) to be taken in the following year to
            preserve and protect such interest.

      SECTION 10.03 Notices. All demands, notices, communications and
instructions upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the
case of the Seller, to Nissan Auto Receivables Corporation II, 990 West 190th
Street, Torrance, California 90502, Attention of Secretary, (b) in the case of
the Servicer, to Nissan Motor Acceptance Corporation, 990 West 190th Street,
Torrance, California 90502, Attention of Secretary, (c) in the case of the
Issuer or the Owner Trustee, to Nissan Auto Receivables 2003-A Owner Trust, c/o
Wilmington Trust Company, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, Attention: Nissan Auto Receivables 2003-A Owner
Trust, (d) in the case of the Indenture Trustee, at the Corporate Trust Office,
(e) in the case of Moody's, to Moody's Investors Service, ABS Monitoring
Department, 99 Church Street, New York, New York 10007, and (f) in the case of
Standard & Poor's, to Standard & Poor's, a division of The McGraw-Hill
Companies, Inc., 55 Water Street, New York, New York 10041-0003, Attention:
Asset Backed Surveillance Department; or, as to each of the foregoing, at such
other address as shall be designated by written notice to the other parties.

      SECTION 10.04 Assignment by the Seller or the Servicer. Notwithstanding
anything to the contrary contained herein, except as provided in Sections 6.04
and 7.03 of this Agreement and as provided in the provisions of this Agreement
concerning the resignation or termination of the Servicer, this Agreement may
not be assigned by the Seller or the Servicer without the prior written consent
of the Indenture Trustee, the Owner Trustee, the Holders of Notes evidencing not
less than 66 2/3% of the Outstanding Amount and the Holders of Certificates
evidencing not less than 66 2/3% of the Certificate Balance.

      SECTION 10.05 Limitations on Rights of Others. The provisions of this
Agreement are solely for the benefit of the Seller, the Servicer, the Issuer,
the Owner Trustee, the Certificateholders, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, whether express or implied, shall be
construed to give to any other Person any legal or equitable right, remedy or
claim in the Owner Trust Estate or under or in respect of this Agreement or any
covenants, conditions or provisions contained herein.

      SECTION 10.06 Severability. Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       68
<PAGE>

      SECTION 10.07 Separate Counterparts. This Agreement may be executed by the
parties hereto in separate counterparts, each of which when so executed and
delivered shall be an original, but all such counterparts shall together
constitute but one and the same instrument.

      SECTION 10.08 Headings. The headings of the various Articles and Sections
herein are for convenience of reference only and shall not define or limit any
of the terms or provisions hereof.

      SECTION 10.09 Governing Law. This Agreement shall be construed in
accordance with the laws of the State of New York, without reference to its
conflict of law provisions (other than Section 5-1401 of the General Obligations
Law of the State of New York), and the obligations, rights and remedies of the
parties hereunder shall be determined in accordance with such laws.

      SECTION 10.10 Assignment by Issuer. The Seller hereby acknowledges and
consents to any mortgage, pledge, assignment and grant of a security interest by
the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and the related property acquired hereunder and/or the
assignment of any or all of the Issuer's rights and obligations hereunder to the
Indenture Trustee.

      SECTION 10.11 Nonpetition Covenants.

            (a) Notwithstanding any prior termination of this Agreement, the
      Servicer and the Seller shall not, prior to the date which is one year and
      one day after the termination of this Agreement with respect to the
      Issuer, acquiesce, petition or otherwise invoke or cause the Issuer to
      invoke the process of any court or government authority for the purpose of
      commencing or sustaining a case against the Issuer under any federal or
      state bankruptcy, insolvency or similar law, or appointing a receiver,
      liquidator, assignee, trustee, custodian, sequestrator or other similar
      official of the Issuer or any substantial part of its property, or
      ordering the winding up or liquidation of the affairs of the Issuer.

            (b) Notwithstanding any prior termination of this Agreement, each of
      the Servicer and the Owner Trustee (not in its individual capacity but
      solely as Owner Trustee), prior to the date which is one year and one day
      after the Notes are paid in full, covenants and agrees that it will not at
      any time file, join in any filing of, or cooperate with or encourage
      others to file any bankruptcy, reorganization arrangement, insolvency or
      liquidation proceeding or other proceedings against the Seller under any
      federal or state bankruptcy, insolvency or similar law, appointing a
      receiver, liquidator, assignee, trustee, custodian, sequestrator or other
      similar official of the Seller or any substantial part of its property, or
      ordering the winding up or liquidation of the affairs of the Seller.

      SECTION 10.12 Limitation of Liability of Owner Trustee and Indenture
Trustee. Notwithstanding anything contained herein to the contrary, this
Agreement has been countersigned by Wilmington Trust Company, not in its
individual capacity, but solely in its capacity as Owner Trustee of the Issuer,
and by Wells Fargo Bank Minnesota, National Association, not in its individual
capacity, but solely in its capacity as Indenture Trustee under

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       69
<PAGE>

the Indenture. In no event shall Wilmington Trust Company or Wells Fargo Bank
Minnesota, National Association have any liability for the representations,
warranties, covenants, agreements or other obligations of the Issuer hereunder
or in any of the certificates, notices or agreements delivered by the Seller or
the Servicer, or prepared by the Seller or the Servicer for delivery by the
Owner Trustee on behalf of the Issuer, pursuant hereto, as to all of which
recourse shall be had solely to the assets of the Issuer. For all purposes of
this Agreement, in the performance of its duties or obligations hereunder or in
the performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles VI, VII and VIII of the Trust Agreement.

      SECTION 10.13 Waivers. No failure or delay on the part of the Issuer in
exercising any power, right or remedy under this Agreement or the Assignment
shall operate as a waiver hereof or thereof, nor shall any single or partial
exercise of any such power, right or remedy preclude any other or further
exercise hereof or thereof or the exercise of any such power, right or remedy
preclude any other or further exercise hereof or thereof or the exercise of any
other power, right or remedy. Nothwithstanding anything to the contrary, the
Issuer shall not waive any breach of representations and warranties as set forth
in Sections 3.01(e), (l), (n), (o), (aa) or (ee) without the written consent of
at least a majority of the Outstanding Amount of the Notes, voting as a single
class (excluding for such purposes the outstanding principal amount of any Notes
held of record or beneficially owned by NMAC, NARC II or any of their
Affiliates, unless at such time all of the Notes are held of record or
beneficially owned by NMAC, NARC II or any of their Affiliates.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                       70
<PAGE>

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

                                    NISSAN AUTO RECEIVABLES 2003-A OWNER TRUST

                                    By: WILMINGTON TRUST COMPANY,
                                    not in its individual capacity but solely as
                                    Owner Trustee on behalf of the Trust

                                    By:      /s/ Daniel M. Reser
                                       -----------------------------------------
                                         Name: Daniel M. Reser
                                         Title: Authorized Signer

                                    NISSAN AUTO RECEIVABLES
                                    CORPORATION II, as Seller

                                    By:      /s/ Joji Tagawa
                                       -----------------------------------------
                                         Name: Joji Tagawa
                                         Title: Treasurer

                                    NISSAN MOTOR ACCEPTANCE CORPORATION,
                                    individually and as Servicer

                                    By:     /s/ Steven R. Lambert
                                       -----------------------------------------
                                       Name: Steven R. Lambert
                                       Title: President

ACKNOWLEDGED AND ACCEPTED AS OF
THE DAY AND YEAR FIRST ABOVE WRITTEN:

WELLS FARGO BANK MINNESOTA, NATIONAL ASSOCIATION,
not in its individual capacity but solely as Indenture Trustee

By:     /s/ Marianna C. Stershic
   ---------------------------------------------
     Name: Marianna C. Stershic
     Title: Vice President

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                      S-1
<PAGE>

                                   SCHEDULE A

                             SCHEDULE OF RECEIVABLES

                          To be delivered upon request.

                                    (Nissan 2003-A Sale and Servicing Agreement)

                                      A-1
<PAGE>

                                   SCHEDULE B

                        LOCATION OF THE RECEIVABLE FILES

1.    Nissan Motor Acceptance Corporation, including its Infiniti Financial
      Services Division, 8900 Freeport Parkway, Irving, TX 75063-2438

2.    Iron Mountain, 1235 N. Union Bower, Irving, Texas 75061

3.    Nissan North America, Inc., Denver Data Center, 106 Inverness Circle, East
      Englewood, Colorado 80112-5312

4.    Arcus, 15505 East Hinsdale Circle, Englewood, Colorado 80112

5.    FDI Consulting, 1610 Arden Way, Suite 145, Sacramento, California 95815

                                    (Nissan 2003-A Sale and Servicing Agreement)

<PAGE>

                                    EXHIBIT A

                       FORM OF YIELD SUPPLEMENT AGREEMENT

                            Please see document #21.

                                    (Nissan 2003-A Sale and Servicing Agreement)

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