Document:

EXHIBIT 10.4 

FORM OF

ADMINISTRATION AGREEMENT

among

USAA AUTO OWNER TRUST 20[   ]-[   ], 

as Issuer

USAA FEDERAL SAVINGS BANK, 

as Administrator

and

[   ], 

as Indenture Trustee

Dated as of [     ], 20[   ]

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 
	
 1.

 	
 Duties of
 the Administrator

 	
  

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 2.

 	
 Records

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 
	
 3.

 	
 Compensation;
 Payment of Fees and Expenses

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 
	
 4.

 	
 Independence
 of the Administrator

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 
	
 5.

 	
 No Joint
 Venture

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 
	
 6.

 	
 Other
 Activities of the Administrator

 	
  

 	
 3

 
	
  

 	
  

 	
  

 	
  

 
	
 7.

 	
 Representations
 and Warranties of the Administrator

 	
  

 	
 4

 
	
  

 	
  

 	
  

 	
  

 
	
 8.

 	
 Administrator
 Replacement Events; Termination of the Administrator

 	
  

 	
 4

 
	
  

 	
  

 	
  

 	
  

 
	
 9.

 	
 Action upon
 Termination or Removal

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 10.

 	
 Liens

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 11.

 	
 Notices

 	
  

 	
 6

 
	
  

 	
  

 	
  

 	
  

 
	
 12.

 	
 Amendments

 	
  

 	
 7

 
	
  

 	
  

 	
  

 	
  

 
	
 13.

 	
 Governing
 Law; Submission to Jurisdiction; Waiver of Jury Trial

 	
  

 	
 8

 
	
  

 	
  

 	
  

 	
  

 
	
 14.

 	
 Headings

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 15.

 	
 Counterparts

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 16.

 	
 Entire
 Agreement

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 17.

 	
 Severability
 of Provisions

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 18.

 	
 Not
 Applicable to the Bank in Other Capacities

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 19.

 	
 Benefits of
 the Administration Agreement

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 20.

 	
 Assignment

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 21.

 	
 Nonpetition
 Covenant

 	
  

 	
 9

 
	
  

 	
  

 	
  

 	
  

 
	
 22.

 	
 Limitation
 of Liability

 	
  

 	
 10

 
	
  

 	
  

 	
  

 	
  

 
	
 23.

 	
 [Limitation
 of Rights]

 	
  

 	
 10

 

i

          THIS ADMINISTRATION AGREEMENT
(this “Agreement”) dated as of [     ], is among USAA AUTO OWNER TRUST 20[
     ]-[     ], a
Delaware statutory trust (the “Issuer”), USAA FEDERAL SAVINGS BANK, a federally
chartered savings association, as administrator (the “Bank” or in its capacity
as administrator, the “Administrator”), and [          ], a
[          ], as indenture
trustee (the “Indenture Trustee”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned such terms in
Appendix A to the Sale and Servicing Agreement dated as of [     ] (the “Sale and
Servicing Agreement”) by and among USAA Acceptance, LLC, as seller, the Issuer,
the Bank, as servicer, and the Indenture Trustee.  

WITNESSETH:

          WHEREAS,
the Issuer has issued the Notes pursuant to the Indenture and the Certificate
pursuant to the Trust Agreement and has entered into certain agreements in
connection therewith, including, (i) the Sale and Servicing Agreement, (ii) the
Indenture[, and] (iii) the Note Depository Agreement and (iv) the Interest Rate
Swap Agreement] (the Trust Agreement and each of the agreements referred to in
clauses (i) through [(iii) (iv)] are referred to herein collectively as the
“Issuer Documents”);  

          WHEREAS, to
secure payment of the Notes, the Issuer has pledged the Collateral to the
Indenture Trustee pursuant to the Indenture; 

          WHEREAS,
pursuant to the Issuer Documents, the Issuer and the Owner Trustee are required
to perform certain duties; 

          WHEREAS,
the Issuer and the Owner Trustee desire to have the Administrator perform
certain of the duties of the Issuer and the Owner Trustee (in its capacity as
owner trustee under the Trust Agreement), and to provide such additional
services consistent with this Agreement and the Issuer Documents as the Issuer
may from time to time request; 

          WHEREAS,
the Administrator has the capacity to provide the services required hereby and
is willing to perform such services for the Issuer and the Owner Trustee on the
terms set forth herein; 

          NOW,
THEREFORE, in consideration of the mutual terms and covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows: 

	
  

 	
  

 
	
  

 	
 1. Duties
 of the Administrator.

 
	
  

 	
  

 
	
  

 	
           (a) Duties
with Respect to the Issuer Documents. The Administrator shall perform all
of its duties as Administrator under this Agreement and the Issuer Documents
and the duties and obligations of the Issuer and the Owner Trustee (in its
capacity as owner trustee under the Trust Agreement) under the Issuer
Documents; provided, however, except as otherwise provided
in the Issuer Documents, that the Administrator shall have no obligation to
make any payment required to be made by the Issuer under any Issuer Document;
provided, further, that the Administrator shall
have no obligation, and the Owner Trustee shall be required to fully perform
its duties, with respect to the obligations of the Owner Trustee under
Sections 11.13, 11.14 and 11.15 of the Trust  

 

	
  

 	
  

 
	
  

 	
 Agreement and to otherwise comply with the requirements of the Owner
 Trustee pursuant to or related to Regulation AB. In addition, the
 Administrator shall consult with the Issuer and the Owner Trustee regarding
 its duties and obligations under the Issuer Documents. The Administrator
 shall monitor the performance of the Issuer and the Owner Trustee and shall
 advise the Issuer and the Owner Trustee in writing when action is necessary
 to comply with the Issuer’s and the Owner Trustee’s duties and obligations
 under the Issuer Documents. The Administrator shall perform such
 calculations, and shall prepare for execution by the Issuer or the Owner
 Trustee or shall cause the preparation by other appropriate Persons of all
 such documents, reports, filings, instruments, certificates, notices and
 opinions as it shall be the duty of the Issuer or the Owner Trustee (in its
 capacity as owner trustee under the Trust Agreement) to prepare, file or
 deliver pursuant to the Issuer Documents. In furtherance of the foregoing,
 the Administrator shall take all appropriate action that is the duty of the
 Issuer or the Owner Trustee (in its capacity as owner trustee under the Trust
 Agreement) to take pursuant to the Issuer Documents, and shall prepare,
 execute, file and deliver on behalf of the Issuer or the Owner Trustee all
 such documents, reports, filings, instruments, certificates and opinions as
 it shall be the duty of the Issuer or the Owner Trustee to prepare, file or
 deliver pursuant to the Issuer Documents or otherwise by law. 

 
	
  

 	
  

 
	
  

 	
           (b) Notices
 to Rating Agencies. The Administrator shall give notice to each Rating
 Agency of (i) any merger or consolidation of the Owner Trustee pursuant to Section
 10.4 of the Trust Agreement; (ii) any merger or consolidation of the
 Indenture Trustee pursuant to Section 6.9 of the Indenture; (iii) any
 resignation or removal of the Indenture Trustee pursuant to Section 6.8
 of the Indenture; (iv) any Default or Event of Default of which it has been
 provided notice pursuant to Section 6.5 of the Indenture; (v) the
 termination of, and/or appointment of a successor to, the Servicer pursuant
 to Section 7.1 of the Sale and Servicing Agreement; and (vi) any
 supplemental indenture pursuant to Section 9.1 or 9.2 of the
 Indenture; in the case of each of (i) through (vi), promptly
 upon the Administrator being notified thereof by the Owner Trustee, the
 Indenture Trustee or the Servicer, as applicable. 

 
	
  

 	
  

 
	
  

 	
           (c) No
 Action by Administrator. Notwithstanding anything to the contrary in this
 Agreement, the Administrator shall not be obligated to, and shall not, take
 any action that the Issuer directs the Administrator not to take or which
 would result in a violation or breach of the Issuer’s covenants, agreements
 or obligations under any of the Issuer Documents. 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (d) Non-Ministerial
 Matters; Exceptions to Administrator Duties. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 Notwithstanding anything to the contrary in this Agreement, with respect to
 matters that in the reasonable judgment of the Administrator are
 non-ministerial, the Administrator shall not take any action unless, within a
 reasonable time before the taking of such action, the Administrator shall
 have notified the Issuer of the proposed action and the Issuer shall not have
 withheld consent or provided an alternative direction. For the purpose of the
 preceding sentence, “non-ministerial matters” shall include, without
 limitation:

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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           (A) the
 initiation of any claim or lawsuit by the Issuer and the compromise of any
 action, claim or lawsuit brought by or against the Issuer; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (B) the
 appointment of successor Note Registrars, successor Paying Agents, successor
 Indenture Trustees, successor Administrators or successor Servicers, or the
 consent to the assignment by the Note Registrar, the Paying Agent or the
 Indenture Trustee of its obligations under the Indenture; and 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (C) the
 removal of the Indenture Trustee. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii)
 Notwithstanding anything to the contrary in this Agreement, the Administrator
 shall not be obligated to, and shall not, (x) make any payments to the
 Noteholders under the Transaction Documents, (y) except as provided in the
 Transaction Documents, sell the Trust Estate or (z) take any other action
 that the Issuer directs the Administrator not to take on its behalf. 

 

          2. Records.
The Administrator shall maintain appropriate books of account and records
relating to services performed hereunder, which books of account and records
shall be accessible for inspection upon reasonable written request by the
Issuer, the Seller and the Indenture Trustee at any time during normal business
hours. 

          3. Compensation;
Payment of Fees and Expenses. As compensation for the performance of the
Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to receive $[      ]
annually which shall be solely an obligation of the Seller. The Administrator
shall pay all expenses incurred by it in connection with its activities
hereunder. 

          4. Independence
of the Administrator. For all purposes of this Agreement, the Administrator
shall be an independent contractor and shall not be subject to the supervision
of the Issuer with respect to the manner in which it accomplishes the
performance of its obligations hereunder. Unless expressly authorized by the
Issuer, the Administrator shall have no authority to act for or to represent
the Issuer in any way (other than as permitted hereunder) and shall not
otherwise be deemed an agent of the Issuer. 

          5. No
Joint Venture. Nothing contained in this Agreement (i) shall constitute the
Administrator and the Issuer as members of any partnership, joint venture,
association, syndicate, unincorporated business or other separate entity, (ii)
shall be construed to impose any liability as such on the Administrator or the
Issuer or (iii) shall be deemed to confer on the Administrator or the Issuer
any express, implied or apparent authority to incur any obligation or liability
on behalf of the other. 

          6. Other
Activities of the Administrator. Nothing herein shall prevent the
Administrator or its Affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an Administrator for any
other Person even though such Person may engage in business activities similar
to those of the Issuer, the Owner Trustee or the Indenture Trustee. 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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          7. Representations
and Warranties of the Administrator. The Administrator represents and
warrants to the Issuer and the Indenture Trustee as follows: 

	
  

 	
  

 
	
  

 	
           (a) Existence
 and Power. The Administrator is a federally chartered savings association
 validly existing and in good standing under the laws of the United States and
 has, in all material respects, all power and authority to carry on its
 business as now conducted. The Administrator has obtained all necessary
 licenses and approvals in each jurisdiction where the failure to do so would
 materially and adversely affect the ability of the Administrator to perform
 its obligations under the Transaction Documents or affect the enforceability
 or collectibility of the Receivables or any other part of the Collateral. 

 
	
  

 	
  

 
	
  

 	
           (b) Authorization
 and No Contravention. The execution, delivery and performance by the
 Administrator of the Transaction Documents to which it is a party (i) have
 been duly authorized by all necessary action on the part of the Administrator
 and (ii) do not contravene or constitute a default under (A) any applicable
 law, rule or regulation, (B) its organizational documents or (C) any material
 agreement, contract, order or other instrument to which it is a party or its
 property is subject (other than violations which do not affect the legality,
 validity or enforceability of any of such agreements and which, individually
 or in the aggregate, would not materially and adversely affect the
 transactions contemplated by, or the Administrator’s ability to perform its
 obligations under, the Transaction Documents). 

 
	
  

 	
  

 
	
  

 	
           (c) No
 Consent Required. No approval or authorization by, or filing with, any
 Governmental Authority is required in connection with the execution, delivery
 and performance by the Administrator of any Transaction Document other than
 (i) UCC filings, (ii) approvals and authorizations that have previously been
 obtained and filings that have previously been made and (iii) approvals,
 authorizations or filings which, if not obtained or made, would not have a
 material adverse effect on the enforceability or collectibility of the
 Receivables or any other part of the Collateral or would not materially and
 adversely affect the ability of the Administrator to perform its obligations
 under the Transaction Documents. 

 
	
  

 	
  

 
	
  

 	
           (d) Binding
 Effect. Each Transaction Document to which the Administrator is a party
 constitutes the legal, valid and binding obligation of the Administrator
 enforceable against the Administrator in accordance with its terms, except as
 such enforceability may be limited by applicable bankruptcy, insolvency,
 reorganization, moratorium, receivership, conservatorship or other similar
 laws affecting the enforcement of creditors’ rights generally and, if
 applicable, the rights of creditors of federally chartered savings
 associations from time to time in effect or by general principles of equity. 

 

	
  

 	
  

 
	
  

 	
 8. Administrator Replacement Events; Termination of the
 Administrator. 

 
	
  

 	
  

 
	
  

 	
           (a)
 Subject to clauses (d) and (e) below, the Administrator may
 resign its duties hereunder by providing the Issuer with at least sixty (60)
 days’ prior written notice.

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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           (b) The
 Issuer may remove the Administrator without cause by providing the
 Administrator with at least sixty (60) days’ prior written notice; provided, that, for so long as any Notes
 are Outstanding, the Rating Agency Condition shall have been satisfied in
 connection therewith. 

 
	
  

 	
  

 
	
  

 	
           (c) The
 occurrence of any one of the following events (each, an “Administrator
 Replacement Event”) shall also entitle the Issuer, subject to Section
 20 hereof, to terminate and replace the Administrator: 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) any
 failure by the Administrator to deliver or cause to be delivered any required
 payment to the Indenture Trustee for distribution to the Noteholders, which
 failure continues unremedied for five Business Days after discovery thereof
 by a Responsible Officer of the Administrator or receipt by the Administrator
 of written notice thereof from the Indenture Trustee or Noteholders
 evidencing at least a majority of the Outstanding Note Balance, voting
 together as a single class; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) any
 failure by the Administrator to duly observe or perform in any material
 respect any other of its covenants or agreements in this Agreement, which
 failure materially and adversely affects the rights of the Issuer or the
 Noteholders, and which continues unremedied for 90 days after discovery
 thereof by a Responsible Officer of the Administrator or receipt by the
 Administrator of written notice thereof from the Indenture Trustee or Noteholders
 evidencing at least a majority of the Outstanding Note Balance, voting
 together as a single class; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii) any
 representation or warranty of the Administrator made in any Transaction
 Document to which the Administrator is a party or by which it is bound or any
 certificate delivered pursuant to this Agreement proves to have been
 incorrect in any material respect when made, which failure materially and
 adversely affects the rights of the Issuer or the Noteholders, and which
 failure continues unremedied for 90 days after discovery thereof by a
 Responsible Officer of the Administrator or receipt by the Administrator of
 written notice thereof from the Indenture Trustee or Noteholders evidencing
 at least a majority of the Outstanding Note Balance, voting together as a
 single class (it being understood that any repurchase of a Receivable by the
 Bank pursuant to Section 3.3 of the Purchase Agreement, by the Seller
 pursuant to Section 2.3 of the Sale and Servicing Agreement or by the
 Servicer pursuant to Section 3.6 of the Sale and Servicing Agreement
 shall be deemed to remedy any incorrect representation or warranty with
 respect to such Receivable); or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv) the
 Administrator suffers an Insolvency Event; 

 
	
  

 	
  

 	
  

 
	
  

 	
 provided, however, that a delay in or failure of
 performance referred to under clause (i) above for a period of 90 days
 will not constitute an Administrator Replacement Event if such delay or
 failure was caused by force majeure or
 other similar occurrence as certified by the Administrator in an Officer’s
 Certificate of the Administrator delivered to the Indenture Trustee.

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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           (d) If an
 Administrator Replacement Event shall have occurred, the Issuer may, subject
 to Section 20 hereof, by notice given to the Administrator and the
 Owner Trustee, terminate all or a portion of the rights and powers of the
 Administrator under this Agreement, including the rights of the Administrator
 to receive the annual fee for services hereunder for all periods following
 such termination; provided, however, that such termination shall not
 become effective until such time as the Issuer, subject to Section 20
 hereof, shall have appointed a successor Administrator with the consent of
 the Indenture Trustee in the manner set forth below. Upon any such
 termination, all rights, powers, duties and responsibilities of the
 Administrator under this Agreement shall vest in and be assumed by any
 successor Administrator appointed by the Issuer, subject to Section 20
 hereof, pursuant to a management agreement between the Issuer and such
 successor Administrator, containing substantially the same provisions as this
 Agreement (including with respect to the compensation of such successor
 Administrator), and the successor Administrator is hereby irrevocably
 authorized and empowered to execute and deliver, on behalf of the
 Administrator, as attorney-in-fact or otherwise, all documents and other
 instruments, and to do or accomplish all other acts or things necessary or
 appropriate to effect such vesting and assumption. Further, in such event,
 the Administrator shall use its commercially reasonable efforts to effect the
 orderly and efficient transfer of the administration of the Issuer to the new
 Administrator. 

 
	
  

 	
  

 
	
  

 	
           (e) The
 Issuer, subject to Section 20 hereof, may waive in writing any
 Administrator Replacement Event by the Administrator in the performance of
 its obligations hereunder and its consequences. Upon any such waiver of a
 past Administrator Replacement Event, such Administrator Replacement Event
 shall cease to exist, and any Administrator Replacement Event 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
 Administrator Replacement Event or impair any right consequent thereon. 

 

          9. Action
upon Termination or Removal. Promptly upon the effective date of
termination of this Agreement pursuant to Section 8, or the removal of the
Administrator pursuant to Section 8, the Administrator shall be entitled
to be paid by the Seller all fees and reimbursable expenses accruing to it to
the date of such termination or removal.  

          10. Liens.
The Administrator will not directly or indirectly create, allow or suffer to
exist any Lien on the Collateral other than Permitted Liens. 

          11. Notices.
All demands, notices and communications hereunder shall be in writing and shall
be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, by facsimile or,
if so provided on Schedule II to the Sale and Servicing Agreement, by
electronic transmission, and addressed in each case as specified on Schedule
II to the Sale and Servicing Agreement or at such other address as shall be
designated by any of the specified addressees in a written notice to the other
parties hereto. Delivery will be deemed to have been given and made: (i) upon
delivery or, in the case of a letter mailed by registered or certified
first-class United States mail, postage prepaid, three days after deposit in
the mail, (ii) in the case of a facsimile, when receipt is confirmed by telephone, reply email or reply facsimile from
the recipient, (iii) in the case of electronic transmission, when

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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receipt is
confirmed by telephone or reply email from the recipient and (iv) in the case
of an electronic posting to a password-protected website to which the recipient
has been provided access, upon delivery (without the requirement of
confirmation of receipt) and notice (including email) to such recipient stating
that such electronic posting has occurred. 

          12. Amendments.

	
  

 	
  

 	
  

 
	
  

 	
           (a) Any
 term or provision of this Agreement may be amended by the Administrator
 without the consent of the Indenture Trustee, any Noteholder, the Issuer,
 [the Swap Counterparty,] the Owner Trustee or any other Person subject to subsections
 (e) and (f) of this Section 12 and the satisfaction of one of the
 following conditions: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i) the
 Administrator delivers to the Indenture Trustee (a) an Opinion of Counsel to
 the effect that such amendment will not materially and adversely affect the
 interests of the Noteholders; and (b) an Officer’s Certificate of the
 Administrator to the effect that such amendment will not materially or
 adversely affect the interests of the Noteholders; or 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (ii) the
 Rating Agency Condition is satisfied with respect to such amendment and the
 Administrator notifies the Indenture Trustee in writing that the Rating
 Agency Condition is satisfied with respect to such amendment. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (b) This
 Agreement may also be amended from time to time by the Issuer and the Administrator,
 with the consent of the Holders of Notes evidencing not less than a majority
 of the Outstanding Note Balance of the Controlling Class, for the purpose of
 adding any provisions to or changing in any manner or eliminating any of the
 provisions of this Agreement or of modifying in any manner the rights of the
 Noteholders. It will not be necessary for the consent of Noteholders to
 approve the particular form of any proposed amendment or consent, but it will
 be sufficient if such consent approves the substance thereof. The manner of
 obtaining such consents (and any other consents of Noteholders provided for
 in this Agreement) and of evidencing the authorization of the execution
 thereof by Noteholders will be subject to such reasonable requirements as the
 Indenture Trustee may prescribe, including the establishment of record dates
 pursuant to the Note Depository Agreement.

 
	
  

 	
  

 	
  

 
	
  

 	
           (c) Prior
 to the execution of any amendment pursuant to this Section 12, the
 Administrator shall provide written notification of the substance of such
 amendment to each Rating Agency and the Owner Trustee; and promptly after the
 execution of any such amendment or consent, the Administrator shall furnish a
 copy of such amendment or consent to each Rating Agency, the Owner Trustee
 and the Indenture Trustee; provided,
 that no amendment pursuant to this Section 12 shall be effective which
 [(i)] affects the rights, protections or duties of the Indenture Trustee or
 the Owner Trustee without the prior written consent of such Person (which
 consent shall not be unreasonably withheld or delayed)[ or (ii) materially
 and adversely affects the rights or obligations of the Swap Counterparty
 unless the Swap Counterparty shall have consented in writing to such
 amendment (and such consent shall be deemed to have been given if the Swap

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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 Counterparty does not object in writing within ten (10) Business Days
 after receipt of a written request for such consent)]. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (d) Prior
 to the execution of any amendment pursuant to this Section 12, the
 Owner Trustee and the Indenture Trustee shall be entitled to receive and
 conclusively rely upon an Opinion of Counsel stating that the execution of
 such amendment is authorized or permitted by this Agreement and that all
 conditions precedent to the execution and delivery of such amendment have
 been satisfied. The Owner Trustee and the Indenture Trustee may, but shall
 not be obligated to, enter into or execute on behalf of the Issuer any such
 amendment which adversely affects the Owner Trustee’s or the Indenture
 Trustee’s, as applicable, own rights, privileges, indemnities, duties or
 obligations under this Agreement. 

 
	
  

 	
  

 	
  

 
	
  

 	
 13. Governing Law; Submission to Jurisdiction; Waiver of Jury
 Trial. 

 
	
  

 	
  

 	
  

 
	
  

 	
           (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED
 IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK
 WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER
 THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW, AND
 THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
 DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (b) Each of the parties hereto hereby irrevocably and
 unconditionally: 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (i)
 submits for itself and its property in any legal action or Proceeding
 relating to this Agreement or any documents executed and delivered in
 connection herewith, or for recognition and enforcement of any judgment in
 respect thereof, to the nonexclusive general jurisdiction of the courts of
 the State of New York, the courts of the United States of America for the
 Southern District of New York and appellate courts from any thereof; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iii)
 agrees that service of process in any such action or Proceeding may be
 effected by mailing a copy thereof by registered or certified mail (or any
 substantially similar form of mail), postage prepaid, to such Person at its
 address determined in accordance with Section 11 of this Agreement; 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
           (iv)
 agrees that nothing herein shall affect the right to effect service of
 process in any other manner permitted by law or shall limit the right to sue
 in any other jurisdiction; and 

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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           (v) to
 the extent permitted by applicable law, each party hereto irrevocably waives
 all right of trial by jury in any action, Proceeding or counterclaim based
 on, or arising out of, under or in connection with this Agreement, any other
 Transaction Document, or any matter arising hereunder or thereunder. 

 

          14. Headings.
The section headings hereof have been inserted for convenience of reference
only and shall not be construed to affect the meaning, construction or effect
of this Agreement. 

          15. Counterparts.
This Agreement may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all of such counterparts shall
together constitute but one and the same instrument. 

          16. Entire
Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the
subject matter thereof and shall constitute the entire agreement among the
parties hereto with respect to the subject matter thereof, superseding all
prior oral or written understandings. There are no unwritten agreements among
the parties hereto with respect to the subject matter hereof. 

          17. Severability
of Provisions. If any one or more of the covenants, agreements, provisions
or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable
from the remaining covenants, agreements, provisions or terms of this Agreement
and shall in no way affect the validity or enforceability of the other
provisions of this Agreement. 

          18. Not
Applicable to the Bank in Other Capacities. Nothing in this Agreement shall
affect any obligation the Bank may have in any other capacity. 

          19. Benefits
of the Administration Agreement. Nothing in this Agreement, expressed or
implied, shall give to any Person other than the parties hereto and their
successors hereunder, the Owner Trustee, any separate trustee or co-trustee
appointed under Section 6.10 of the Indenture and the Noteholders, any benefit
or any legal or equitable right, remedy or claim under this Agreement. For the
avoidance of doubt, the Owner Trustee is a third party beneficiary of this
Agreement and is entitled to the rights and benefits hereunder and may enforce
the provisions hereof as if it were a party hereto.  

          20. Assignment.
Each party hereto hereby acknowledges and consents to the 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 of
the Issuer’s rights under this Agreement. In addition, the Administrator hereby
acknowledges and agrees that for so long as any Notes are outstanding, the
Indenture Trustee will have the right to exercise all waivers and consents,
rights, remedies, powers, privileges and claims of the Issuer under this Agreement
pursuant to the Grant of such security interest in the event the Issuer shall
fail to exercise the same. 

          21. Nonpetition
Covenant. Each party hereto agrees that, prior to the date which is one
year and one day after payment in full of all obligations of each Bankruptcy
Remote Party in

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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respect of all securities issued by any Bankruptcy Remote Party (i)
such party shall not authorize any Bankruptcy Remote Party to commence a
voluntary winding-up or other voluntary case or other Proceeding seeking
liquidation, reorganization or other relief with respect to such Bankruptcy
Remote Party or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect in any jurisdiction or seeking the appointment of an
administrator, a trustee, receiver, liquidator, custodian or other similar
official with respect to such Bankruptcy Remote Party or any substantial part
of its property or to consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
Proceeding commenced against such Bankruptcy Remote Party, or to make a general
assignment for the benefit of, its creditors generally, any party hereto or any
other creditor of such Bankruptcy Remote Party, and (ii) such party shall not
commence, join with any other Person in commencing or institute with any other
Person any Proceeding against such Bankruptcy Remote Party under any
bankruptcy, reorganization, liquidation or insolvency law or statute now or
hereafter in effect in any jurisdiction. 

          22. Limitation
of Liability. Notwithstanding anything contained herein to the contrary,
this Agreement has been executed and delivered by [      ], not in its individual
capacity but solely as Owner Trustee, and in no event shall it have any
liability for the representations, warranties, covenants, agreements or other
obligations of the Issuer hereunder or under the Notes or any of the other
Transaction Documents or in any of the certificates, notices or agreements
delivered pursuant thereto, as to all of which recourse shall be had solely to
the assets of the Issuer. Under no circumstances shall the Owner Trustee be
personally liable for the payment of any indebtedness or expense of the Issuer
or be liable for the breach or failure of any obligations, representation,
warranty or covenant made or undertaken by the Issuer under the Transaction
Documents. For the purposes of this Agreement, in the performance of its duties
or obligations hereunder, the Owner Trustee shall be subject to, and entitled
to the benefits of, the terms and provisions of Articles VI, VII and VIII of
the Trust Agreement.  

          23. [Limitation
of Rights]. [All of the rights of the Swap Counterparty in, to and under
this Agreement, if any, shall terminate upon the termination of the Interest
Rate Swap Agreement in accordance with the terms thereof and the payment in
full of all amounts owing to the Swap Counterparty under such Interest Rate
Swap Agreement.] 

[SIGNATURES ON NEXT PAGE]

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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          IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the day and year first above written. 

	
  

 	
  

 	
  

 
	
  

 	
 USAA AUTO OWNER TRUST 20[  ]-[  ]

 
	
  

 	
  

 	
  

 
	
  

 	
 By:
 [          ], not in its
 individual capacity but solely as Owner Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
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 USAA FEDERAL
SAVINGS BANK, as Administrator 

 
	
  

 	
  

 	
  

 
	
  

 	
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 Name:

 
	
  

 	
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 Administration Agreement

 
	
  

 	
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 not in its individual capacity but solely as Indenture Trustee

 
	
  

 	
  

 	
  

 
	
  

 	
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 Name:

 
	
  

 	
 Title:

 

	
  

 	
  

 	
  

 
	
  

 	
  

 	
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Joinder of
USAA Acceptance, LLC: 

USAA
Acceptance, LLC joins in this Agreement solely for purposes of Section 3.  

	
  

 	
  

 	
  

 
	
  

 	
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ACCEPTANCE, LLC 

 
	
  

 	
  

 	
  

 
	
  

 	
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 (USAA 20[  ]-[  ])exh10-1.htm

Exhibit 10.1

SOLAR PHOTOVOLTAIC ASSET SALE AGREEMENT

 

THIS AGREEMENT is made effective the 24th day of October, 2012.

BETWEEN:

SOLAR KRAFTE UTILITIES INC., a company incorporated under the laws of the Province of British Columbia and having a registered office at 1120 Martin Street, White Rock, British Columbia, Canada, V4B 3V7

 

(hereinafter called “Solar Krafte”)

 

OF THE FIRST PART

AND:

CORONUS ENERGY CORP., a company incorporated under the laws of the state of Delaware and having a registered office at 600 – 1201 Orange Street, Wilmington, Delaware, U.S.A., 19801

 

(hereinafter called “Coronus Energy”)

 

OF THE SECOND PART

WHEREAS:

 

	
A.  

	
Solar Krafte is a solar photovoltaic developer;

 

	
B.  

	
Coronus Energy is a solar photovoltaic developer;

 

	
C.  

	
Solar Krafte holds a contract to purchase 100% of the membership in Industry Solar Power Generation Station 1 LLC;

 

	
D.  

	
Coronus Energy has offered to purchase from Solar Krafte and Solar Krafte has agreed to sell to Coronus Energy 100% of the membership in Industry Solar Power Generation Station 1 LLC.

 

 

NOW THEREFORE THIS AGREEMENT WITNESSES that for good and valuable consideration, the receipt of which is hereby acknowledged, the parties hereto agree each with the other as follows:

 

	
1.  

	
INTERPRETATION

 

	
1.1  

	
Definitions

 

Where used herein or in any amendments or schedules hereto, the following terms shall have the following meanings:

 

  

  

  

- 2 -

	
(a)       

	
“Agreement” means this Solar Photovoltaic Asset Sale Agreement including all schedules, and all instruments supplemental to or in amendment or confirmation of this Agreement;

 

	
(b)       

	
“Closing Date” means the later of the dates on which Southern California Edison approves 1) the Solar Krafte Design Change, 2) the invocation of Section 2.9(c) of the Industry PPA, extending the Initial Operation Deadline of the Generating Facility, and 3) the relocation of the Generating Facility to the Adelanto West Parcel;

 

	
(c)        

	
“Execution Date” means the date of execution of this Agreement by all parties;

 

	
(d)        

	
“Industry” means Industry Solar Power Generation Station 1 LLC;

 

	
(e)       

	
“Industry LLC Membership” means 100% of the membership in Industry;

 

	
(f)       

	
“Industry PPA” means the 1.5 MW_ac, RAP ID 5496, Power Purchase Agreement between Industry and Southern California Edison;

 

	
(g)       

	
“Adelanto West Parcel” means the 40 acres of vacant land, in the City of Adelanto, California (APN 3129-251-13);

 

	
(h)       

	
“Solar Krafte Design Change” means changing the design of the Generating Facility under the Industry PPA from concentrating to flat plate photovoltaic solar power generation technology; and,

 

	
(i)        

	
“United States” means the United States of America, its territories and possessions and any State of the United States and the District of Columbia.

 

	
1.2  

	
Deemed Currency

 

In the absence of a specific designation of any currency, any undescribed dollar amount herein will be deemed to refer to United States dollars.

 

	
1.3  

	
Governing Law

 

This Agreement will be governed by and interpreted in accordance with the laws of the State of California and the federal laws of the United States of America applicable therein.

 

	
2.  

	
PURCHASE AND SALE

 

	
2.1  

	
Purchase and Sale

 

Based on the representations and warranties contained in this Agreement, Solar Krafte agrees to sell, assign and transfer to Coronus Energy, and Coronus Energy agrees to purchase from Solar Krafte, the Industry LLC Membership, for the price and in accordance with and subject to the terms and conditions set forth in this Agreement.

 

	
2.2  

	
Purchase Price

 

Solar Krafte will sell the Industry LLC Membership to Coronus Energy for $1,250,000 (the “Cash Price”). Within ten days of the Closing Date, on the assignment and transfer to Coronus Energy by Solar Krafte of the Industry LLC Membership, the Cash Price will be paid by Coronus

 

  

  

  

- 3 -

Energy to Solar Krafte by wire transfer in immediately available funds to the account specified by Solar Krafte.

 

	
3.  

	
DEPOSIT

 

On the Execution Date, Coronus Energy agrees to deposit $40,000 with Solar Krafte, refundable to Coronus Energy only if Southern California Edison refuses to approve 1) the Solar Krafte Design Change, 2) the invocation of Section 2.9(c) of the Industry PPA, extending the Initial Operation Deadline of the Generating Facility, or 3) the relocation of the Generating Facility to the Adelanto West Parcel.

 

	
4.  

	
CONTINGENCY

 

This Agreement is contingent on Southern California Edison approving 1) the Solar Krafte Design Change, 2) the invocation of Section 2.9(c) of the Industry PPA, extending the Initial Operation Deadline of the Generating Facility, and 3) the relocation of the Generating Facility to the Adelanto West Parcel. Each party shall have the right to terminate this Agreement effective upon notice to the other party if Southern California Edison fails to approve, within 90 days after the Execution Date, 1) the Solar Krafte Design Change, 2) the invocation of Section 2.9(c) of the Industry PPA, extending the Initial Operation Deadline of the Generating Facility, or 3) the relocation of the Generating Facility to the Adelanto West Parcel.

 

	
5.  

	
COVENANTS, REPRESENTATIONS AND WARRANTIES OF CORONUS ENERGY

 

Coronus Energy covenants, represents and warrants to Solar Krafte (and acknowledges that Solar Krafte is relying upon such covenants, representations and warranties in entering into this Agreement) that, under this Agreement:

 

	
5.1  

	
Coronus Energy has good right, full corporate power and absolute authority to enter into this Agreement and to perform all of its obligations under this Agreement.

 

	
5.2  

	
This Agreement has been duly executed and delivered by Coronus Energy and the Agreement will constitute a legal, valid and binding obligation of Coronus Energy enforceable in accordance with its terms.

 

	
6.  

	
COVENANTS, REPRESENTATIONS AND WARRANTIES OF SOLAR KRAFTE

 

Solar Krafte covenants, represents and warrants to Coronus Energy (and acknowledges that Coronus Energy is relying upon such covenants, representations and warranties in entering into this Agreement) that, under this Agreement:

 

	
6.1  

	
Solar Krafte covenants, represents and warrants to Coronus Energy that:

 

	
(a)        

	
Industry is, and will be, a party in good standing to the Industry PPA, as at the date of this Agreement and the Closing Date; and,

 

	
(b)        

	
But for the obligations of Industry, pursuant to the Industry PPA, Industry has, and will have, no obligations as at the date of this Agreement and the Closing Date.

 

  

  

  

- 4 -

	
6.2  

	
Solar Krafte has good right, full corporate power and absolute authority to enter into this Agreement and to perform all of its obligations under this Agreement.

 

	
6.3  

	
This Agreement has been duly executed and delivered by Solar Krafte and the Agreement will constitute a legal, valid and binding obligation of Solar Krafte enforceable in accordance with its terms.

 

	
7.  

	
LEGAL PROCEEDINGS

 

	
7.1  

	
In the event that any proceeding, litigation or action (an “Action”) is taken by any party or parties hereto against any other party or parties in respect of this Agreement or the transactions contemplated hereunder, any and all costs incurred by the prevailing party or parties in respect of such Action shall be paid by the unsuccessful party or parties to such Action.

 

	
8.  

	
GENERAL PROVISIONS

 

	
8.1  

	
Time shall be of the essence of this Agreement.

 

	
8.2  

	
This Agreement contains the whole agreement between the parties hereto in respect of the purchase and sale of the solar photovoltaic assets and the transactions contemplated herein and there are no warranties, representations, terms, conditions or collateral agreements expressed, implied or statutory, other than as expressly set forth in this Agreement.

 

	
8.3  

	
This Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and permitted assigns. Solar Krafte may not assign this Agreement without the written consent of Coronus Energy, which consent shall not be unreasonably withheld. Coronus Energy may not assign this Agreement without the written consent of Solar Krafte, which consent shall not be unreasonably withheld.

 

	
8.4  

	
Any notice to be given under this Agreement shall be duly and properly given if made in writing and by delivering the same to each party at their respective address provided on page 1 of this Agreement.  Any notice given as aforesaid shall be deemed to have been given or made on the date on which it was delivered.  Any party hereto may change its address for notice from time to time by notice given to the other parties hereto in accordance with the foregoing.

 

 

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- 5 -

IN WITNESS WHEREOF the parties hereto have executed this Agreement effective as of the day and year first above written.

 

	  	  	  	  
	  	
SOLAR KRAFTE UTILITIES, INC.

	  	  
	  	  	  	  
	  	  	  	  
	
Per:

	
JEFF THACHUK

	  	  
	  	
Signature

	  	  
	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	
CORONUS ENERGY CORP.

	  	  
	  	  	  	  
	  	  	  	  
	
Per:

	
JEFF THACHUK

	  	  
	  	
Signature

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