Document:

Exhibit 10.7

 

Exhibit 10.7

	 	 	 
	(Multicurrency — Cross Border)

	 	EXECUTION VERSION

ISDA®

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of September 5, 2007

BANCO SANTANDER, S.A. and SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2, a Delaware statutory
trust, have entered and/or anticipate entering into one or more transactions (each a “Transaction”)
that are or will be governed by this Master Agreement, which includes the schedule (the
“Schedule”), and the documents and other confirming evidence (each a “Confirmation”) exchanged
between the parties confirming those Transactions.

Accordingly, the parties agree as follows:

	1.	 	Interpretation
	 
	(a)	 	Definitions. The terms defined in Section 14 and in the Schedule will have the meanings
therein specified for the purpose of this Master Agreement.
	 
	(b)	 	Inconsistency. In the event of any inconsistency between the provisions of the Schedule and
the other provisions of this Master Agreement, the Schedule will prevail. In the event of any
inconsistency between the provisions of any Confirmation and this Master Agreement (including
the Schedule), such Confirmation will prevail for the purpose of the relevant Transaction.
	 
	(c)	 	Single Agreement. All Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties (collectively
referred to as this “Agreement”), and the parties would not otherwise enter into any
Transactions.
	 
	2.	 	Obligations
	 
	(a)	 	General Conditions.

(i) Each party will make each payment or delivery specified in each Confirmation to be made
by it, subject to the other provisions of this Agreement.

(ii) Payments under this Agreement will be made on the due date for value on that date in
the place of the account specified in the relevant Confirmation or otherwise
pursuant to this Agreement, in freely transferable funds and in the manner customary for

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payments in the required currency. Where settlement is by delivery (that is, other than by
payment), such delivery will be made for receipt on the due date in the manner customary for
the relevant obligation unless otherwise specified in the relevant Confirmation or elsewhere
in this Agreement.

(iii) Each obligation of each party under Section 2(a)(i) is subject to (1) the condition
precedent that no Event of Default or Potential Event of Default with respect to the other
party has occurred and is continuing, (2) the condition precedent that no Early Termination
Date in respect of the relevant Transaction has occurred or been effectively designated and
(3) each other applicable condition precedent specified in this Agreement.

	(b)	 	Change of Account. Either party may change its account for receiving a payment or delivery
by giving notice to the other party at least five Local Business Days prior to the scheduled
date for the payment or delivery to which such change applies unless such other party gives
timely notice of a reasonable objection to such change.
	 
	(c)	 	Netting. If on any date amounts would otherwise be payable:

(i) in the same currency; and

(ii) in respect of the same Transaction,

by each party to the other, then, on such date, each party’s obligation to make payment of any such
amount will be automatically satisfied and discharged and, if the aggregate amount that would
otherwise have been payable by one party exceeds the aggregate amount that would otherwise have
been payable by the other party, replaced by an obligation upon the party by whom the larger
aggregate amount would have been payable to pay to the other party the excess of the larger
aggregate amount over the smaller aggregate amount.

The parties may elect in respect of two or more Transactions that a net amount will be determined
in respect of all amounts payable on the same date in the same currency in respect of such
Transactions, regardless of whether such amounts are payable in respect of the same Transaction.
The election may be made in the Schedule or a Confirmation by specifying that subparagraph (ii)
above will not apply to the Transactions identified as being subject to the election, together with
the starting date (in which case subparagraph (ii) above will not, or will cease to, apply to such
Transactions from such date). This election may be made separately for different groups of
Transactions and will apply separately to each pairing of Offices through which the parties make
and receive payments or deliveries.

	(d)	 	Deduction or Withholding for Tax.

(i) Gross-Up. All payments under this Agreement will be made without any deduction or
withholding for or on account of any Tax unless such deduction or withholding is required by
any applicable law, as modified by the practice of any relevant governmental revenue
authority, then in effect. If a party is so required to deduct or withhold, then that party
(“X”) will:—

(1) promptly notify the other party (“Y”) of such requirement;

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(2) pay to the relevant authorities the full amount required to be deducted or
withheld (including the full amount required to be deducted or withheld from any
additional amount paid by X to Y under this Section 2(d)) promptly upon the earlier
of determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against Y;

(3) promptly forward to Y an official receipt (or a certified copy), or other
documentation reasonably acceptable to Y, evidencing such payment to such
authorities; and

(4) if such Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to
which Y is otherwise entitled under this Agreement, such additional amount as is
necessary to ensure that the net amount actually received by Y (free and clear of
Indemnifiable Taxes, whether assessed against X or Y) will equal the full amount Y
would have received had no such deduction or withholding been required. However, X
will not be required to pay any additional amount to Y to the extent that it would
not be required to be paid but for:

(A) the failure by Y to comply with or perform any agreement contained in
Section 4(a)(i), 4(a)(iii) or 4(d); or

(B) the failure of a representation made by Y pursuant to Section 3(f) to be
accurate and true unless such failure would not have occurred but for (I)
any action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a
party to this Agreement) or (II) a Change in Tax Law.

(ii) Liability. If:—

(1) X is required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, to make any deduction or withholding in respect of
which X would not be required to pay an additional amount to Y under Section
2(d)(î)(4);

(2) X does not so deduct or withhold; and

(3) a liability resulting from such Tax is assessed directly against X,

	 	 	then, except to the extent Y has satisfied or then satisfies the liability resulting from
such Tax, Y will promptly pay to X the amount of such liability (including any related
liability for interest, but including any related liability for penalties only if Y has
failed to comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d)).
	 
	(e)	 	Default Interest; Other Amounts. Prior to the occurrence or effective designation of an
Early Termination Date in respect of the relevant Transaction, a party that defaults in the
performance of any payment obligation will, to the extent permitted by law and subject to
Section 6(c), be required to pay interest (before as well as after judgment) on the overdue

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	 	 	amount to the other party on demand in the same currency as such overdue amount, for the
period from (and including) the original due date for payment to (but excluding) the date of
actual payment, at the Default Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant Transaction, a party
defaults in the performance of any obligation required to be settled by delivery, it will
compensate the other party on demand if and to the extent provided for in the relevant
Confirmation or elsewhere in this Agreement.

	3.	 	Representations

Each party represents to the other party (which representations will be deemed to be repeated by
each party on each date on which a Transaction is entered into and, in the case of the
representations in Section 3(f), at all times until the termination of this Agreement) that:

	(a)	 	Basic Representations.

(i) Status. It is duly organised and validly existing under the laws of the jurisdiction of
its organisation or incorporation and, if relevant under such laws, in good standing;

(ii) Powers. It has the power to execute this Agreement and any other documentation
relating to this Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement to deliver
and to perform its obligations under this Agreement and any obligations it has under any
Credit Support Document to which it is a party and has taken all necessary action to
authorise such execution, delivery and performance;

(iii) No Violation or Conflict. Such execution, delivery and performance do not violate or
conflict with any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it or any of its
assets or any contractual restriction binding on or affecting it or any of its assets;

(iv) Consents. All governmental and other consents that are required to have been obtained
by it with respect to this Agreement or any Credit Support Document to which it is a party
have been obtained and are in full force and effect and all conditions of any such consents
have been complied with; and

(v) Obligations Binding. Its obligations under this Agreement and any Credit Support
Document to which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable bankruptcy,
reorganisation, insolvency, moratorium or similar laws affecting creditors’ rights generally
and subject, as to enforceability, to equitable principles of general application
(regardless of whether enforcement is sought in a proceeding in equity or at law)).

	(b)	 	Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no

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	 	 	such event or circumstance would occur as a result of its entering into or performing its
obligations under this Agreement or any Credit Support Document to which it is a party.

	(c)	 	Absence of Litigation. There is not pending or, to its knowledge, threatened against it or
any of its Affiliates any action, suit or proceeding at law or in equity or before any court,
tribunal, governmental body, agency or official or any arbitrator that is likely to affect the
legality, validity or enforceability against it of this Agreement or any Credit Support
Document to which it is a party or its ability to perform its obligations under this Agreement
or such Credit Support Document.
	 
	(d)	 	Accuracy of Specified Information. All applicable information that is furnished in writing
by or on behalf of it to the other party and is identified for the purpose of this Section
3(d) in the Schedule is, as of the date of the information, true, accurate and complete in
every material respect.
	 
	(e)	 	Payer Tax Representation. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(e) is accurate and true.
	 
	(f)	 	Payee Tax Representations. Each representation specified in the Schedule as being made by it
for the purpose of this Section 3(f) is accurate and true.
	 
	4.	 	Agreements

Each party agrees with the other that, so long as either party has or may have any obligation under
this Agreement or under any Credit Support Document to which it is a party:

	(a)	 	Furnish Specified Information. It will deliver to the other party or, in certain cases under
subparagraph (iii) below, to such government or taxing authority as the other party reasonably
directs:

     (i) any forms, documents or certificates relating to taxation specified in the Schedule or
any Confirmation;

     (ii) any other documents specified in the Schedule or any Confirmation; and

     (iii) upon reasonable demand by such other party, any form or document that may be required
or reasonably requested in writing in order to allow such other party or its Credit Support
Provider to make a payment under this Agreement or any applicable Credit Support Document
without any deduction or withholding for or on account of any Tax or with such deduction or
withholding at a reduced rate (so long as the completion, execution or submission of such
form or document would not materially prejudice the legal or commercial position of the
party in receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be executed and to
be delivered with any reasonably required certification,

in each case by the date specified in the Schedule or such Confirmation or, if none is specified,
as soon as reasonably practicable.

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	(b)	 	Maintain Authorisations. It will use all reasonable efforts to maintain in full force and
effect all consents of any governmental or other authority that are required to be obtained by
it with respect to this Agreement or any Credit Support Document to which it is a party and
will use all reasonable efforts to obtain any that may become necessary in the future.
	 
	(c)	 	Comply with Laws. It will comply in all material respects with all applicable laws and
orders to which it may be subject if failure so to comply would materially impair its ability
to perform its obligations under this Agreement or any Credit Support Document to which it is
a party.
	 
	(d)	 	Tax Agreement. It will give notice of any failure of a representation made by it under
Section 3(f) to be accurate and true promptly upon learning of such failure.
	 
	(e)	 	Payment of Stamp Tax. Subject to Section 11, it will pay any Stamp Tax levied or imposed
upon it or in respect of its execution or performance of this Agreement by a jurisdiction in
which it is incorporated, organised, managed and controlled, or considered to have its seat,
or in which a branch or office through which it is acting for the purpose of this Agreement is
located (“Stamp Tax Jurisdiction”) and will indemnify the other party against any Stamp Tax
levied or imposed upon the other party or in respect of the other party’s execution or
performance of this Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.
	 
	5.	 	Events of Default and Termination Events
	 
	(a)	 	Events of Default. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any of the
following events constitutes an event of default (an “Event of Default”) with respect to such
party:

(i) Failure to Pay or Deliver. Failure by the party to make, when due, any payment under
this Agreement or delivery under Section 2(a)(i) or 2(e) required to be made by it if such
failure is not remedied on or before the third Local Business Day after notice of such
failure is given to the party;

(ii) Breach of Agreement. Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement or delivery
under Section 2(a)(i) or 2(e) or to give notice of a Termination Event or any agreement or
obligation under Section 4(a)(i), 4(a)(iii) or 4(d)) to be complied with or performed by the
party in accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

(iii) Credit Support Default.

(1) Failure by the party or any Credit Support Provider of such party to comply with
or perform any agreement or obligation to be complied with or

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performed by it in
accordance with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

(2) the expiration or termination of such Credit Support Document or the failing or
ceasing of such Credit Support Document to be in full force and effect for the
purpose of this Agreement (in either case other than in accordance with its terms)
prior to the satisfaction of all obligations of such party under each Transaction to
which such Credit Support Document relates without the written consent of the other
party; or

(3) the party or such Credit Support Provider disaffirms, disclaims, repudiates or
rejects, in whole or in part, or challenges the validity of, such Credit Support
Document;

(iv) Misrepresentation. A representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or any Credit
Support Provider of such party in this Agreement or any Credit Support Document proves to
have been incorrect or misleading in any material respect when made or repeated or deemed to
have been made or repeated;

(v) Default under Specified Transaction. The party, any Credit Support Provider of such
party or any applicable Specified Entity of such party (1) defaults under a Specified
Transaction and, after giving effect to any applicable notice requirement or grace period,
there occurs a liquidation of, an acceleration of obligations under, or an early termination
of, that Specified Transaction, (2) defaults, after giving effect to any applicable notice
requirement or grace period, in making any payment or delivery due on the last payment,
delivery or exchange date of, or any payment on early termination of, a Specified
Transaction (or such default continues for at least three Local Business Days if there is no
applicable notice requirement or grace period) or (3) disaffirms, disclaims, repudiates or
rejects, in whole or in part, a Specified Transaction (or such action is taken by any person
or entity appointed or empowered to operate it or act on its behalf);

(vi) Cross Default. If “Cross Default” is specified in the Schedule as applying to the
party, the occurrence or existence of (1) a default, event of default or other similar
condition or event (however described) in respect of such party, any Credit Support Provider
of such party or any applicable Specified Entity of such party under one or more agreements
or instruments relating to Specified Indebtedness of any of them (individually or
collectively) in an aggregate amount of not less than the applicable Threshold Amount (as
specified in the Schedule) which has resulted in such Specified Indebtedness becoming, or
becoming capable at such time of being declared, due and payable under such agreements or
instruments, before it would otherwise have been due and payable or (2) a default by such
party, such Credit Support Provider or such Specified Entity (individually or collectively)
in making one or more payments on the due date thereof in an aggregate amount of not less than the applicable Threshold Amount under such agreements
or instruments (after giving effect to any applicable notice requirement or grace period);

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(vii) Bankruptcy. The party, any Credit Support Provider of such party or any applicable
Specified Entity of such party: —

(1) is dissolved (other than pursuant to a consolidation, amalgamation or merger);
(2) becomes insolvent or is unable to pay its debts or fails or admits in writing
its inability generally to pay its debts as they become due; (3) makes a general
assignment, arrangement or composition with or for the benefit of its creditors; (4)
institutes or has instituted against it a proceeding seeking a judgment of
insolvency or bankruptcy or any other relief under any bankruptcy or insolvency law
or other similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results in a
judgment of insolvency or bankruptcy or the entry of an order for relief or the
making of an order for its winding-up or liquidation or (B) is not dismissed,
discharged, stayed or restrained in each case within 30 days of the institution or
presentation thereof; (5) has a resolution passed for its winding-up, official
management or liquidation (other than pursuant to a consolidation, amalgamation or
merger); (6) seeks or becomes subject to the appointment of an administrator,
provisional liquidator, conservator, receiver, trustee, custodian or other similar
official for it or for all or substantially all its assets; (7) has a secured party
take possession of all or substantially all its assets or has a distress, execution,
attachment, sequestration or other legal process levied, enforced or sued on or
against all or substantially all its assets and such secured party maintains
possession, or any such process is not dismissed, discharged, stayed or restrained,
in each case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which, under the applicable laws of any jurisdiction, has an analogous
effect to any of the events specified in clauses (1) to (7) (inclusive); or (9)
takes any action in furtherance of, or indicating its consent to, approval of, or
acquiescence in, any of the foregoing acts; or

(viii) Merger Without Assumption. The party or any Credit Support Provider of such party
consolidates or amalgamates with, or merges with or into, or transfers all or substantially
all its assets to, another entity and, at the time of such consolidation, amalgamation,
merger or transfer:

(1) the resulting, surviving or transferee entity fails to assume all the
obligations of such party or such Credit Support Provider under this Agreement or
any Credit Support Document to which it or its predecessor was a party by operation
of law or pursuant to an agreement reasonably satisfactory to the other party to
this Agreement; or

(2) the benefits of any Credit Support Document fail to extend (without the consent
of the other party) to the performance by such resulting, surviving or transferee
entity of its obligations under this Agreement.

	(b)	 	Termination Events. The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of any 

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	 	 	event specified below constitutes an Illegality if the event is specified in (i) below, a Tax Event
if the event is specified in (ii) below or a Tax Event Upon Merger if the event is specified
in (iii) below, and, if specified to be applicable, a Credit Event Upon Merger if the event is
specified pursuant to (iv) below or an Additional Termination Event if the event is specified
pursuant to (v) below:

(i) Illegality. Due to the adoption of, or any change in, any applicable law after the date
on which a Transaction is entered into, or due to the promulgation of, or any change in, the
interpretation by any court, tribunal or regulatory authority with competent jurisdiction of
any applicable law after such date, it becomes unlawful (other than as a result of a breach
by the party of Section 4(b)) for such party (which will be the Affected Party): —

(1) to perform any absolute or contingent obligation to make a payment or delivery
or to receive a payment or delivery in respect of such Transaction or to comply with
any other material provision of this Agreement relating to such Transaction; or

(2) to perform, or for any Credit Support Provider of such party to perform, any
contingent or other obligation which the party (or such Credit Support Provider) has
under any Credit Support Document relating to such Transaction;

(ii) Tax Event. Due to (x) any action taken by a taxing authority, or brought in a court of
competent jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party to this
Agreement) or (y) a Change in Tax Law, the party (which will be the Affected Party) will, or
there is a substantial likelihood that it will, on the next succeeding Scheduled Payment
Date (1) be required to pay to the other party an additional amount in respect of an
Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is required to be
deducted or withheld for or on account of a Tax (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) and no additional amount is required to be paid in respect of such
Tax under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or (B));

(iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled Payment Date will either (1) be required to pay an additional amount in respect of
an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been deducted or
withheld for or on account of any Indemnifiable Tax in respect of which the other party is
not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with, or merging with or into, or transferring all or substantially all its
assets to, another entity (which will be the Affected Party) where such action does not
constitute an event described in Section 5(a)(viii);

(iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule
as applying to the party, such party (“X”), any Credit Support Provider of X or

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any
applicable Specified Entity of X consolidates or amalgamates with, or merges with or into,
or transfers all or substantially all its assets to, another entity and such action does not
constitute an event described in Section 5(a)(viii) but the creditworthiness of the
resulting, surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately prior to such
action (and, in such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

(v) Additional Termination Event. If any “Additional Termination Event” is specified in the
Schedule or any Confirmation as applying, the occurrence of such event (and, in such event,
the Affected Party or Affected Parties shall be as specified for such Additional Termination
Event in the Schedule or such Confirmation).

	(c)	 	Event of Default and Illegality. If an event or circumstance which would otherwise
constitute or give rise to an Event of Default also constitutes an Illegality, it will be
treated as an Illegality and will not constitute an Event of Default.
	 
	6.	 	Early Termination
	 
	(a)	 	Right to Terminate Following Event of Default. If at any time an Event of Default with
respect to a party (the “Defaulting Party”) has occurred and is then continuing, the other
party (the “Non-defaulting Party”) may, by not more than 20 days notice to the Defaulting
Party specifying the relevant Event of Default, designate a day not earlier than the day such
notice is effective as an Early Termination Date in respect of all outstanding Transactions.
If, however, “Automatic Early Termination” is specified in the Schedule as applying to a
party, then an Early Termination Date in respect of all outstanding Transactions will occur
immediately upon the occurrence with respect to such party of an Event of Default specified in
Section 5(a)(vii)(1), (3), (5), (6) or, to the extent analogous thereto, (8), and as of the
time immediately preceding the institution of the relevant proceeding or the presentation of
the relevant petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).
	 
	(b)	 	Right to Terminate Following Termination Event.

(i) Notice. If a Termination Event occurs, an Affected Party will, promptly upon becoming
aware of it, notify the other party, specifying the nature of that Termination Event and
each Affected Transaction and will also give such other information about that Termination
Event as the other party may reasonably require.

(ii) Transfer to Avoid Termination Event. If either an Illegality under Section 5(b)(i)(1)
or a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon Merger occurs and the Burdened Party is the Affected Party, the Affected Party will, as
a condition to its right to designate an Early Termination Date under Section 6(b)(iv), use
all reasonable efforts (which will not require such party to incur a loss, excluding
immaterial, incidental expenses) to transfer within 20 days after it gives notice under
Section 6(b)(i) all its rights and obligations under this Agreement in respect of the

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Affected Transactions to another of its Offices or Affiliates so that such Termination Event
ceases to exist.

If the Affected Party is not able to make such a transfer it will give notice to the other
party to that effect within such 20 day period, whereupon the other party may effect such a
transfer within 30 days after the notice is given under Section 6(b)(i).

Any such transfer by a party under this Section 6(b)(ii) will be subject to and conditional
upon the prior written consent of the other party, which consent will not be withheld if
such other party’s policies in effect at such time would permit it to enter into
transactions with the transferee on the terms proposed.

(iii) Two Affected Parties. If an Illegality under Section 5(b)(i)(1) or a Tax Event occurs
and there are two Affected Parties, each party will use all reasonable efforts to reach
agreement within 30 days after notice thereof is given under Section 6(b)(i) on action to
avoid that Termination Event.

(iv) Right to Terminate. If: —

(1) a transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as
the case may be, has not been effected with respect to all Affected Transactions
within 30 days after an Affected Party gives notice under Section 6(b)(i); or

(2) an Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an
Additional Termination Event occurs, or a Tax Event Upon Merger occurs and the
Burdened Party is not the Affected Party,

	 	 	either party in the case of an Illegality, the Burdened Party in the case of a Tax Event
Upon Merger, any Affected Party in the case of a Tax Event or an Additional Termination
Event if there is more than one Affected Party, or the party which is not the Affected Party
in the case of a Credit Event Upon Merger or an Additional Termination Event if there is
only one Affected Party may, by not more than 20 days notice to the other party and provided
that the relevant Termination Event is then continuing, designate a day not earlier than the
day such notice is effective as an Early Termination Date in respect of all Affected
Transactions.
	 
	(c)	 	Effect of Designation.

(i) If notice designating an Early Termination Date is given under Section 6(a) or (b), the
Early Termination Date will occur on the date so designated, whether or not the relevant
Event of Default or Termination Event is then continuing.

(ii) Upon the occurrence or effective designation of an Early Termination Date, no further
payments or deliveries under Section 2(a)(i) or 2(e) in respect of the Terminated
Transactions will be required to be made, but without prejudice to the other provisions of
this Agreement. The amount, if any, payable in respect of an Early Termination Date shall be
determined pursuant to Section 6(e).

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	(d)	 	Calculations.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any, contemplated by
Section 6(e) and will provide to the other party a statement (1) showing, in reasonable
detail, such calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of written confirmation from the source
of a quotation obtained in determining a Market Quotation, the records of the party
obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

(ii) Payment Date. An amount calculated as being due in respect of any Early Termination
Date under Section 6(e) will be payable on the day that notice of the amount payable is
effective (in the case of an Early Termination Date which is designated or occurs as a
result of an Event of Default) and on the day which is two Local Business Days after the day
on which notice of the amount payable is effective (in the case of an Early Termination Date
which is designated as a result of a Termination Event). Such amount will be paid together
with (to the extent permitted under applicable law) interest thereon (before as well as
after judgment) in the Termination Currency, from (and including) the relevant Early
Termination Date to (but excluding) the date such amount is paid, at the Applicable Rate.
Such interest will be calculated on the basis of daily compounding and the actual number of
days elapsed.

	(e)	 	Payments on Early Termination. If an Early Termination Date occurs, the following provisions
shall apply based on the parties’ election in the Schedule of a payment measure, either
“Market Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second
Method”. If the parties fail to designate a payment measure or payment method in the Schedule,
it will be deemed that “Market Quotation” or the “Second Method”, as the case may be, shall
apply. The amount, if any, payable in respect of an Early Termination Date and determined
pursuant to this Section will be subject to any Set-off.

(i) Events of Default. If the Early Termination Date results from an Event of Default:

(1) First Method and Market Quotation. If the First Method and Market Quotation
apply, the Defaulting Party will pay to the Non-defaulting Party the excess, if a
positive number, of (A) the sum of the Settlement Amount (determined by the
Non-defaulting Party) in respect of the Terminated Transactions and the Termination
Currency Equivalent of the Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination Currency Equivalent of
the Unpaid Amounts owing to the Defaulting Party.

(2) First Method and Loss. If the First Method and Loss apply, the Defaulting Party
will pay to the Non-defaulting Party, if a positive number, the Non-defaulting
Party’s Loss in respect of this Agreement.

12

 

(3) Second Method and Market Quotation. If the Second Method and Market Quotation
apply, an amount will be payable equal to (A) the sum of the Settlement Amount
(determined by the Non-defaulting Party) in respect of the Terminated Transactions
and the Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the Unpaid
Amounts owing to the Defaulting Party. If that amount is a positive number, the
Defaulting Party will pay it to the Non-defaulting Party; if it is a negative
number, the Non-defaulting Party will pay the absolute value of that amount to the
Defaulting Party.

(4) Second Method and Loss. If the Second Method and Loss apply, an amount will be
payable equal to the Non-defaulting Party’s Loss in respect of this Agreement. If
that amount is a positive number, the Defaulting Party will pay it to the
Non-defaulting Party; if it is a negative number, the Non-defaulting Party will pay
the absolute value of that amount to the Defaulting Party.

(ii) Termination Events. If the Early Termination Date results from a Termination Event: —

(1) One Affected Party. If there is one Affected Party, the amount payable will be
determined in accordance with Section 6(e)(î)(3), if Market Quotation applies, or
Section 6(e)(î)(4), if Loss applies, except that, in either case, references to the
Defaulting Party and to the Non-defaulting Party will be deemed to be references to
the Affected Party and the party which is not the Affected Party, respectively, and,
if Loss applies and fewer than all the Transactions are being terminated, Loss shall
be calculated in respect of all Terminated Transactions.

(2) Two Affected Parties. If there are two Affected Parties: —

(A) if Market Quotation applies, each party will determine a Settlement
Amount in respect of the Terminated Transactions, and an amount will be
payable equal to (I) the sum of (a) one-half of the difference between the
Settlement Amount of the party with the higher Settlement Amount (“X”) and
the Settlement Amount of the party with the lower Settlement Amount (“Y”)
and (b) the Termination Currency Equivalent of the Unpaid Amounts owing to X
less (II) the Termination Currency Equivalent of the Unpaid Amounts owing to
Y; and

(B) if Loss applies, each party will determine its Loss in respect of this
Agreement (or, if fewer than all the Transactions are being terminated, in
respect of all Terminated Transactions) and an amount will be payable
equal to one-half of the difference between the Loss of the party with the
higher Loss (“X”) and the Loss of the party with the lower Loss (“Y”).

If the amount payable is a positive number, Y will pay it to X; if it is a negative
number, X will pay the absolute value of that amount to Y.

13

 

(iii) Adjustment for Bankruptcy. In circumstances where an Early Termination Date occurs
because “Automatic Early Termination” applies in respect of a party, the amount determined
under this Section 6(e) will be subject to such adjustments as are appropriate and permitted
by law to reflect any payments or deliveries made by one party to the other under this
Agreement (and retained by such other party) during the period from the relevant Early
Termination Date to the date for payment determined under Section 6(d)(ii).

(iv) Pre-Estimate. The parties agree that if Market Quotation applies an amount recoverable
under this Section 6(e) is a reasonable pre-estimate of loss and not a penalty. Such amount
is payable for the loss of bargain and the loss of protection against future risks and
except as otherwise provided in this Agreement neither party will be entitled to recover any
additional damages as a consequence of such losses.

	7.	 	Transfer

Subject to Section 6(b)(ii), neither this Agreement nor any interest or obligation in or under this
Agreement may be transferred (whether by way of security or otherwise) by either party without the
prior written consent of the other party, except that:

	(a)	 	a party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially all its assets
to, another entity (but without prejudice to any other right or remedy under this Agreement);
and
	 
	(b)	 	a party may make such a transfer of all or any part of its interest in any amount payable to
it from a Defaulting Party under Section 6(e).

Any purported transfer that is not in compliance with this Section will be void.

	8.	 	Contractual Currency
	 
	(a)	 	Payment in the Contractual Currency. Each payment under this Agreement will be made in the
relevant currency specified in this Agreement for that payment (the “Contractual Currency”).
To the extent permitted by applicable law, any obligation to make payments under this
Agreement in the Contractual Currency will not be discharged or satisfied by any tender in any
currency other than the Contractual Currency, except to the extent such tender results in the
actual receipt by the party to which payment is owed, acting in a reasonable manner and in
good faith in converting the currency so tendered into the Contractual Currency, of the full
amount in the Contractual Currency of all amounts payable in respect of this Agreement. If for
any reason the amount in the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required to make the payment will, to the
extent permitted by applicable law, immediately pay such additional amount in the
Contractual Currency as may be necessary to compensate for the shortfall. If for any reason
the amount in the Contractual Currency so received exceeds the amount in the Contractual
Currency payable in respect of this Agreement, the party receiving the payment will refund
promptly the amount of such excess.

14

 

	(b)	 	Judgments. To the extent permitted by applicable law, if any judgment or order expressed in
a currency other than the Contractual Currency is rendered (i) for the payment of any amount
owing in respect of this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment or order of another
court for the payment of any amount described in (i) or (ii) above, the party seeking
recovery, after recovery in full of the aggregate amount to which such party is entitled
pursuant to the judgment or order, will be entitled to receive immediately from the other
party the amount of any shortfall of the Contractual Currency received by such party as a
consequence of sums paid in such other currency and will refund promptly to the other party
any excess of the Contractual Currency received by such party as a consequence of sums paid in
such other currency if such shortfall or such excess arises or results from any variation
between the rate of exchange at which the Contractual Currency is converted into the currency
of the judgment or order for the purposes of such judgment or order and the rate of exchange
at which such party is able, acting in a reasonable manner and in good faith in converting the
currency received into the Contractual Currency, to purchase the Contractual Currency with the
amount of the currency of the judgment or order actually received by such party. The term
“rate of exchange” includes, without limitation, any premiums and costs of exchange payable in
connection with the purchase of or conversion into the Contractual Currency.
	 
	(c)	 	Separate Indemnities. To the extent permitted by applicable law, these indemnities
constitute separate and independent obligations from the other obligations in this Agreement,
will be enforceable as separate and independent causes of action, will apply notwithstanding
any indulgence granted by the party to which any payment is owed and will not be affected by
judgment being obtained or claim or proof being made for any other sums payable in respect of
this Agreement.
	 
	(d)	 	Evidence of Loss. For the purpose of this Section 8, it will be sufficient for a party to
demonstrate that it would have suffered a loss had an actual exchange or purchase been made.
	 
	9.	 	Miscellaneous
	 
	(a)	 	Entire Agreement. This Agreement constitutes the entire agreement and understanding of the
parties with respect to its subject matter and supersedes all oral communication and prior
writings with respect thereto.
	 
	(b)	 	Amendments. No amendment, modification or waiver in respect of this Agreement will be
effective unless in writing (including a writing evidenced by a facsimile transmission)
and executed by each of the parties or confirmed by an exchange of telexes or electronic
messages on an electronic messaging system.
	 
	(c)	 	Survival of Obligations. Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the
obligations of the parties under this Agreement will survive the termination of any
Transaction.

15

 

	(d)	 	Remedies Cumulative. Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any rights, powers,
remedies and privileges provided by law.
	 
	(e)	 	Counterparts and Confirmations.

(i) This Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission), each of which
will be deemed an original.

(ii) The parties intend that they are legally bound by the terms of each Transaction from
the moment they agree to those terms (whether orally or otherwise). A Confirmation shall he
entered into as soon as practicable and may he executed and delivered in counterparts
(including by facsimile transmission) or be created by an exchange of telexes or by an
exchange of electronic messages on an electronic messaging system, which in each case will
be sufficient for all purposes to evidence a binding supplement to this Agreement. The
parties will specify therein or through another effective means that any such counterpart,
telex or electronic message constitutes a Confirmation.

	(f)	 	No Waiver of Rights. A failure or delay in exercising any right, power or privilege in
respect of this Agreement will not be presumed to operate as a waiver, and a single or partial
exercise of any right, power or privilege will not be presumed to preclude any subsequent or
further exercise, of that right, power or privilege or the exercise of any other right, power
or privilege.
	 
	(g)	 	Headings. The headings used in this Agreement are for convenience of reference only and are
not to affect the construction of or to be taken into consideration in interpreting this
Agreement.
	 
	10.	 	Offices; Multibranch Parties
	 
	(a)	 	If Section 10(a) is specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to the other party
that, notwithstanding the place of booking office or jurisdiction of incorporation or
organisation of such party, the obligations of such party are the same as if it had entered
into the Transaction through its head or home office. This representation will be deemed to be
repeated by such party on each date on which a Transaction is entered into.
	 
	(b)	 	Neither party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent of the other
party.
	 
	(c)	 	If a party is specified as a Multibranch Party in the Schedule, such Multibranch Party may
make and receive payments or deliveries under any Transaction through any Office listed in the
Schedule, and the Office through which it makes and receives payments or deliveries with
respect to a Transaction will be specified in the relevant Confirmation.
	 
	11.	 	Expenses

16

 

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party
by reason of the enforcement and protection of its rights under this Agreement or any Credit
Support Document to which the Defaulting Party is a party or by reason of the early termination of
any Transaction, including, but not limited to, costs of collection.

	12.	 	Notices
	 
	(a)	 	Effectiveness. Any notice or other communication in respect of this Agreement may be given
in any manner set forth below (except that a notice or other communication under Section 5 or
6 may not be given by facsimile transmission or electronic messaging system) to the address or
number or in accordance with the electronic messaging system details provided (see the
Schedule) and will be deemed effective as indicated:—

(i) if in writing and delivered in person or by courier, on the date it is delivered;

(ii) if sent by telex, on the date the recipient’s answerback is received;

(iii) if sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the burden of
proving receipt will be on the sender and will not be met by a transmission report generated
by the sender’s facsimile machine);

(iv) if sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery is attempted;
or

(v) if sent by electronic messaging system, on the date that electronic message is received,

unless the date of that delivery (or attempted delivery) or that receipt, as applicable, is not a
Local Business Day or that communication is delivered (or attempted) or received, as applicable,
after the close of business on a Local Business Day, in which case that communication shall be
deemed given and effective on the first following day that is a Local Business Day.

	(b)	 	Change of Addresses. Either party may by notice to the other change the address, telex or
facsimile number or electronic messaging system details at which notices or other
communications are to be given to it.
	 
	13.	 	Governing Law and Jurisdiction
	 
	(a)	 	Governing Law. This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.
	 
	(b)	 	Jurisdiction. With respect to any suit, action or proceedings relating to this Agreement
(“Proceedings”), each party irrevocably:

(i) submits to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of the State

17

 

of New York and the United States District Court located in the Borough of Manhattan in New
York City, if this Agreement is expressed to be governed by the laws of the State of New
York; and

(ii) waives any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings have been
brought in an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over such party.

Nothing in this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English law, the
Contracting States, as defined in Section 1(3) of the Civil Jurisdiction and Judgments Act 1982 or
any modification, extension or re-enactment thereof for the time being in force) nor will the
bringing of Proceedings in any one or more jurisdictions preclude the bringing of Proceedings in
any other jurisdiction.

	(c)	 	Service of Process. Each party irrevocably appoints the Process Agent (if any) specified
opposite its name in the Schedule to receive, for it and on its behalf, service of process in
any Proceedings. If for any reason any party’s Process Agent is unable to act as such, such
party will promptly notify the other party and within 30 days appoint a substitute process
agent acceptable to the other party. The parties irrevocably consent to service of process
given in the manner provided for notices in Section 12. Nothing in this Agreement will affect
the right of either party to serve process in any other manner permitted by law.
	 
	(d)	 	Waiver of Immunities. Each party irrevocably waives, to the fullest extent permitted by
applicable law, with respect to itself and its revenues and assets (irrespective of their use
or intended use), all immunity on the grounds of sovereignty or other similar grounds from (i)
suit, (ii) jurisdiction of any court, (iii) relief by way of injunction, order for specific
performance or for recovery of property, (iv) attachment of its assets (whether before or
after judgment) and (v) execution or enforcement of any judgment to which it or its revenues
or assets might otherwise be entitled in any Proceedings in the courts of any jurisdiction and
irrevocably agrees, to the extent permitted by applicable law, that it will not claim any such
immunity in any Proceedings.
	 
	14.	 	Definitions

As used in this Agreement:—

“Additional Termination Event” has the meaning specified in Section 5(b). “Affected Party” has the
meaning specified in Section 5(b).

“Affected Transactions” means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by the occurrence of such
Termination Event and (b) with respect to any other Termination Event, all Transactions.

“Affiliate” means, subject to the Schedule, in relation to any person, any entity controlled,
directly or indirectly, by the person, any entity that controls, directly or indirectly, the person
or

18

 

any entity directly or indirectly under common control with the person. For this purpose,
“control” of any entity or person means ownership of a majority of the voting power of the entity
or person.

“Applicable Rate” means:—

	(a)	 	in respect of obligations payable or deliverable (or which would have been but for Section
2(a)(iii)) by a Defaulting Party, the Default Rate;
	 
	(b)	 	in respect of an obligation to pay an amount under Section 6(e) of either party from and
after the date (determined in accordance with Section 6(d)(ii)) on which that amount is
payable, the Default Rate;
	 
	(c)	 	in respect of all other obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and
	 
	(d)	 	in all other cases, the Termination Rate.

“Burdened Party” has the meaning specified in Section 5(b).

“Change in Tax Law” means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation of any law) that
occurs on or after the date on which the relevant Transaction is entered into.

“consent” includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon Merger” has the meaning specified in Section 5(b).

“Credit Support Document” means any agreement or instrument that is specified as such in this
Agreement.

“Credit Support Provider” has the meaning specified in the Schedule.

“Default Rate” means a rate per annum equal to the cost (without proof or evidence of any actual
cost) to the relevant payee (as certified by it) if it were to fund or of funding the relevant
amount plus 1% per annum.

“Defaulting Party” has the meaning specified in Section 6(a).

“Early Termination Date” means the date determined in accordance with Section 6(a) or 6(b)(iv).

“Event of Default” has the meaning specified in Section 5(a) and, if applicable, in the Schedule.

“Illegality” has the meaning specified in Section 5(b).

“Indemnifiable Tax” means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the jurisdiction of

19

 

 the government or taxation authority imposing such Tax and the recipient of such payment or a person
related to such recipient (including, without limitation, a connection arising from such recipient
or related person being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such jurisdiction, or having or
having had a permanent establishment or fixed place of business in such jurisdiction, but excluding
a connection arising solely from such recipient or related person having executed, delivered,
performed its obligations or received a payment under, or enforced, this Agreement or a Credit
Support Document).

“law” includes any treaty, law, rule or regulation (as modified, in the case of tax matters, by the
practice of any relevant governmental revenue authority) and “lawful” and “unlawful” will be
construed accordingly.

“Local Business Day” means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits) (a) in relation to
any obligation under Section 2(a)(i), in the place(s) specified in the relevant Confirmation or, if
not so specified, as otherwise agreed by the parties in writing or determined pursuant to
provisions contained, or incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different, in the principal
financial centre, if any, of the currency of such payment, (c) in relation to any notice or other
communication, including notice contemplated under Section 5(a)(i), in the city specified in the
address for notice provided by the recipient and, in the case of a notice contemplated by Section
2(b), in the place where the relevant new account is to be located and (d) in relation to Section
5(a)(v)(2), in the relevant locations for performance with respect to such Specified Transaction.

“Loss” means, with respect to this Agreement or one or more Terminated Transactions, as the case
may be, and a party, the Termination Currency Equivalent of an amount that party reasonably
determines in good faith to be its total losses and costs (or gain, in which case expressed as a
negative number) in connection with this Agreement or that Terminated Transaction or group of
Terminated Transactions, as the case may be, including any loss of bargain, cost of funding or, at
the election of such party but without duplication, loss or cost incurred as a result of its
terminating, liquidating, obtaining or reestablishing any hedge or related trading position (or any gain resulting from any of them). Loss includes losses and costs
(or gains) in respect of any payment or delivery required to have been made (assuming satisfaction
of each applicable condition precedent) on or before the relevant Early Termination Date and not
made, except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or 6(e)(ii)(2)(A) applies.
Loss does not include a party’s legal fees and out-of-pocket expenses referred to under Section 1L
A party will determine its Loss as of the relevant Early Termination Date, or, if that is not
reasonably practicable, as of the earliest date thereafter as is reasonably practicable. A party
may (but need not) determine its Loss by reference to quotations of relevant rates or prices from
one or more leading dealers in the relevant markets.

“Market Quotation” means, with respect to one or more Terminated Transactions and a party making
the determination, an amount determined on the basis of quotations from Reference Market-makers.
Each quotation will be for an amount, if any, that would be paid to such party (expressed as a
negative number) or by such party (expressed as a positive number) in

20

 

 consideration of an agreement between such party (taking into account any existing Credit Support Document with respect to the
obligations of such party) and the quoting Reference Market-maker to enter into a transaction (the
“Replacement Transaction”) that would have the effect of preserving for such party the economic
equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent
and assuming the satisfaction of each applicable condition precedent) by the parties under Section
2(a)(i) in respect of such Terminated Transaction or group of Terminated Transactions that would,
but for the occurrence of the relevant Early Termination Date, have been required after that date.
For this purpose, Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or delivery that would, but
for the relevant Early Termination Date, -have been required (assuming satisfaction of each
applicable condition precedent) after that Early Termination Date is to be included. The
Replacement Transaction would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or its agent) will
request each Reference Market-maker to provide its quotation to the extent reasonably practicable
as of the same day and time (without regard to different time zones) on or as soon as reasonably
practicable after the relevant Early Termination Date. The day and time as of which those
quotations are to be obtained will be selected in good faith by the party obliged to make a
determination under Section 6(e), and, if each party is so obliged, after consultation with the
other. If more than three quotations are provided, the Market Quotation will be the arithmetic mean
of the quotations, without regard to the quotations having the highest and lowest values. If
exactly three such quotations are provided, the Market Quotation will be the quotation remaining
after disregarding the highest and lowest quotations. For this purpose, if more than one quotation
has the same highest value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market Quotation in respect of
such Terminated Transaction or group of Terminated Transactions cannot be determined.

“Non-default Rate” means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to fund the relevant
amount.

“Non-defaulting Party” has the meaning specified in Section 6(a).

“Office” means a branch or office of a party, which may be such party’s head or home office.

“Potential Event of Default” means any event which, with the giving of notice or the lapse of time
or both, would constitute an Event of Default.

“Reference Market-makers” means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the highest credit standing
which satisfy all the criteria that such party applies generally at the time in deciding whether to
offer or to make an extension of credit and (b) to the extent practicable, from among such dealers
having an office in the same city.

“Relevant Jurisdiction” means, with respect to a party, the jurisdictions (a) in which the party is
incorporated, organised, managed and controlled or considered to have its seat, (b) where an Office
through which the party is acting for purposes of this Agreement is located, (c) in which

21

 

 the party
executes this Agreement and (d) in relation to any payment, from or through which such payment is
made.

“Scheduled Payment Date” means a date on which a payment or delivery is to be made under Section
2(a)(i) with respect to a Transaction.

“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or subject
(whether arising under this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

“Settlement Amount” means, with respect to a party and any Early Termination Date, the sum of: —

	(a)	 	the Termination Currency Equivalent of the Market Quotations (whether positive or negative)
for each Terminated Transaction or group of Terminated Transactions for which a Market
Quotation is determined; and
	 
	(b)	 	such party’s Loss (whether positive or negative and without reference to any Unpaid Amounts)
for each Terminated Transaction or group of Terminated Transactions for which a Market
Quotation cannot be determined or would not (in the reasonable belief of the party making the
determination) produce a commercially reasonable result.

“Specified Entity” has the meanings specified in the Schedule.

“Specified Indebtedness” means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of borrowed money.

“Specified Transaction” means, subject to the Schedule, (a) any transaction (including an agreement
with respect thereto) now existing or hereafter entered into between one party to this Agreement
(or any Credit Support Provider of such party or any applicable Specified Entity of such party) and
the other party to this Agreement (or any Credit Support Provider of such other party or any
applicable Specified Entity of such other party) which is a rate swap transaction, basis swap,
forward rate transaction, commodity swap, commodity option, equity or equity index swap, equity or
equity index option, bond option, interest rate option, foreign exchange
transaction, cap transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar transaction (including
any option with respect to any of these transactions), (b) any combination of these transactions
and (c) any other transaction identified as a Specified Transaction in this Agreement or the
relevant confirmation.

“Stamp Tax” means any stamp, registration, documentation or similar tax.

“Tax” means any present or future tax, levy, impost, duty, charge, assessment or fee of any nature
(including interest, penalties and additions thereto) that is imposed by any government or other
taxing authority in respect of any payment under this Agreement other than a stamp, registration,
documentation or similar tax.

22

 

“Tax Event” has the meaning specified in Section 5(b).

“Tax Event Upon Merger” has the meaning specified in Section 5(b).

“Terminated Transactions” means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an Event of Default, all
Transactions (in either case) in effect immediately before the effectiveness of the notice
designating that Early Termination Date (or, if “Automatic Early Termination” applies, immediately
before that Early Termination Date).

“Termination Currency” has the meaning specified in the Schedule.

“Termination Currency Equivalent” means, in respect of any amount denominated in the Termination
Currency, such Termination Currency amount and, in respect of any amount denominated in a currency
other than the Termination Currency (the “Other Currency”), the amount in the Termination Currency
determined by the party making the relevant determination as being required to purchase such amount
of such Other Currency as at the relevant Early Termination Date, or, if the relevant Market
Quotation or Loss (as the case may be), is determined as of a later date, that later date, with the
Termination Currency at the rate equal to the spot exchange rate of the foreign exchange agent
(selected as provided below) for the purchase of such Other Currency with the Termination Currency
at or about 11:00 a.m. (in the city in which such foreign exchange agent is located) on such date
as would be customary for the determination of such a rate for the purchase of such Other Currency
for value on the relevant Early Termination Date or that later date. The foreign exchange agent
will, if only one party is obliged to make a determination under Section 6(e), be selected in good
faith by that party and otherwise will be agreed by the parties.

“Termination Event” means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate” means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if it were to fund or of
funding such amounts.

“Unpaid Amounts” owing to any party means, with respect to an Early Termination Date, the aggregate
of (a) in respect of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on or prior to
such Early Termination Date and which remain unpaid as at such Early Termination Date and (b) in
respect of each Terminated Transaction, for each obligation under Section 2(a)(i) which was (or
would have been but for Section 2(a)(iii)) required to be settled by delivery to such party on or
prior to such Early Termination Date and which has not been so settled as at such Early Termination
Date, an amount equal to the fair market value of that which was (or would have been) required to
be delivered as of the originally scheduled date for delivery, in each case together with (to the
extent permitted under applicable law) interest, in the currency of such amounts, from (and
including) the date such amounts or obligations were or would have been required to have been paid
or performed to (but excluding) such Early Termination Date, at the Applicable Rate. Such amounts
of interest will be calculated on the basis of daily

23

 

compounding and the actual number of days
elapsed. The fair market value of any obligation referred to in clause (b) above shall be
reasonably determined by the party obliged to make the determination under Section 6(e) or, if each
party is so obliged, it shall be the average of the Termination Currency Equivalents of the fair
market values reasonably determined by both parties.

[Signatures follow]

24

 

IN WITNESS WHEREOF the parties have executed this document on the respective dates specified below
with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 	 	 
	BANCO SANTANDER, S.A.	 	SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	By:	 	U.S. BANK TRUST NATIONAL ASSOCIATION, not in
its individual capacity, but solely as Owner Trustee
	 
	 	 	 	 	 	 	 	 
	By:

	 	/s/ Juan Bosco Nazar
	 	 	 	By:
	 	/s/ Nicole Poole
	 

	 	 
	 	 	 	 	 	 
	 

	 	Name: Juan Bosco Nazar

Title:   Authorized Signature

Date:   31/8/07
	 	 	 	 	 	Name: Nicole Poole

Title:   Vice President

Date:

25Exhibit 10.8

 

Exhibit 10.8

EXECUTION VERSION

SCHEDULE

to the

MASTER AGREEMENT

dated as of September 5, 2007 between

BANCO SANTANDER S.A.(“Party A”)

and

SANTANDER DRIVE AUTO RECEIVABLES TRUST 2007-2 (“Party B”)

 

Part 1. Termination Provisions

	(a)	 	“Specified Entity” means, with respect to Party A for all purposes of this Agreement, none
specified, and with respect to Party B for all purposes of this Agreement, none specified.
	 
	(b)	 	“Specified Transaction” has its meaning as defined in Section 14 of this Agreement.
	 
	(c)	 	The “Automatic Early Termination” provision of Section 6(a) of this Agreement does not apply
to Party A or Party B.
	 
	(d)	 	The “Transfer to Avoid Early Termination” provision of Section 6(b)(ii) shall be amended by
deleting the words “or if a Tax Event upon Merger occurs and the Burdened Party is the
Affected Party.”
	 
	(e)	 	Payments on Early Termination. Except as otherwise provided in this Schedule, “Market
Quotation” and the “Second Method” apply. In the case of any Terminated Transaction that is,
or is subject to, any unexercised option, the words “economic equivalent of any payment or
delivery” appearing in the definition of “Market Quotation” shall be construed to take into
account the economic equivalent of the option.
	 
	(f)	 	“Termination Currency” means United States Dollars.
	 
	(g)	 	Timing of Party B Termination Payment. If an amount calculated as being due in respect of an
Early Termination Date under Section 6(e) of this Agreement is an amount to be paid by Party B
to Party A then, notwithstanding the provisions of Section 6(d)(ii) of this Agreement, such
amount will be payable on the first distribution date for the Notes (“Distribution Date”)
following the date on which the payment would have been payable as determined in accordance
with Section 6(d)(ii); provided that if the date on which the payment would have been payable
as determined in accordance with Section 6(d)(ii) is a Distribution Date, then the payment
will be payable on the date determined in accordance with Section 6(d)(ii).
	 
	(h)	 	Limitation on Defaults by Party A and Party B. The Events of Default specified in Section 5
of this Agreement shall not apply to Party A or Party B except for the following:

	 	(i)	 	Section 5(a)(i) of this Agreement (Failure to Pay or Deliver) shall be
applicable to Party A and Party B, subject to the provisions of the last paragraph
hereof;
	 
	 	(ii)	 	With respect to Party A only, Section 5(a)(ii) of this Agreement (Breach of
Agreement); provided that Section 5(a)(ii) will not apply to Party A with respect to
Party A’s failure to comply with its obligations under Part 5(b)(ii) or 5(b)(iii)
herein or under the Credit Support Annex;
	 
	 	(iii)	 	With respect to Party A only, Section 5(a)(iii) of this Agreement (Credit
Support Default) subject to the provisions of the last paragraph hereof; provided that
Section 5(a)(iii)(1) shall apply to Party B with respect to Party B’s obligations under
Paragraph 3(b) of any Credit Support Annex;
	 
	 	(iv)	 	With respect to Party A only, Section 5(a)(iv) of this Agreement
(Misrepresentation);

 

 

	 	(v)	 	With respect to Party A only, Section 5(a)(vi) of this Agreement (Cross
Default). For the purposes of this Part 1 h(v), “Threshold Amount” shall mean, with
respect to Party A, (x) 3% of Party A’s “Total Equity Capital” as described in its most
recently published Call Report, or (y) if Party A is not Banco Santander S.A., 3% of
the shareholder’s equity (excluding deposits) of such Person; “Specified Indebtedness,”
with respect to Party A, shall have the meaning specified in Section 14, provided that
Specified Indebtedness shall not include deposits received in the course of Party A’s
ordinary banking business; and “Call Report” shall mean, a “Consolidated Reports of
Condition and Income for a Bank with Domestic and Foreign Officers” of Party A, filed
with Federal Deposit Insurance Corporation on a quarterly basis or, if such form is not
required to be filed, such other comparable form applicable to Party A from time to
time.
	 
	 	(vi)	 	Section 5(a)(vii) of this Agreement (Bankruptcy) shall apply to Party A and
Party B; provided that clauses (2), (7) and (9) thereof shall not apply with respect to
Party B, provided further that clause (4) shall not apply to Party B to the extent that
it refers to proceedings or petitions instituted or presented by Party A or any of its
Affiliates, provided further that clause (6) shall not apply to Party B to the extent
that it refers to (i) any appointment that is effected by or pursuant to the
Transaction Documents or (ii) any appointment to which Party B has not become subject,
and provided further that clause (8) shall not apply to Party B to the extent that
clause (8) relates to clauses (2), (4), (6) and (7) (except to the extent that such
provisions are not disapplied to Party B); and
	 
	 	(vii)	 	Section 5(a)(viii) of this Agreement (Merger Without Assumption).

Notwithstanding Sections 5(a)(i) and 5(a)(iii) of this Agreement, any failure by Party A to
comply with or perform any obligation to be complied with or performed by Party A under the
Credit Support Annex shall not be an Event of Default unless (i) a Moody’s Second Trigger
Downgrade Event has occurred and at least 30 Local Business Days have elapsed since the last
time Moody’s Second Trigger Downgrade Event occurred, and (ii) such failure is not remedied
on or before the third Local Business Day after notice of such failure is given to Party A.

	(i)	 	Limitation on Termination Events by Party A and Party B. The Termination Events specified in
Section 5 of this Agreement shall not apply to Party A or Party B except for the following:

	 	(i)	 	Section 5(b)(i) of this Agreement (Illegality);
	 
	 	(ii)	 	Section 5(b)(ii) of this Agreement (Tax Event); provided that Section 5(b)(ii)
shall be amended by deleting the words “(x) any action taken by a taxing authority, or
brought in a court of competent jurisdiction, on or after the date on which a
Transaction is entered into (regardless of whether such action is taken or brought with
respect to a party to this Agreement) or (y)”; and
	 
	 	(iii)	 	Section 5(b)(iii) of this Agreement (Tax Event Upon Merger); provided that
Party A shall not be entitled to designate an Early Termination Date by reason of a Tax
Event upon Merger in respect of which it is the Affected Party.

	(j)	 	Additional Termination Events. The occurrence of any of the following events shall be an
Additional Termination Event.

	 	(i)	 	Breach of the Credit Support Annex. It shall be an Additional Termination
Event if Party A fails to comply with or perform any obligation to be complied with
under the terms of the Credit Support Annex and such failure has not given rise to an
Event of Default. With respect to the foregoing Additional Termination Event, Party A
shall be the sole Affected Party and all Transactions shall be Affected Transactions.
	 
	 	(ii)	 	[Reserved].

2

 

	 	(iii)	 	Second Trigger Rating Replacement. A Moody’s Second Trigger Downgrade Event
has occurred and is continuing and at least 30 Local Business Days have elapsed since
such Moody’s Second Trigger Downgrade Event first occurred, and at least one Eligible
Replacement has made a Firm Offer that would, assuming the occurrence of an Early
Termination Date, qualify as a Market Quotation (on the basis that Part 1(k)(i)
applies) and which remains capable of becoming legally binding upon acceptance. With
respect to the foregoing Additional Termination Event, Party A shall be the sole
Affected Party and all Transactions shall be Affected Transactions.
	 
	 	(iv)	 	S&P Ratings Event. Party A fails to comply with the downgrade provisions as
set forth in Part 5(b)(iii), after giving effect to the relevant time frame specified
therein. With respect to the foregoing Additional Termination Event, Party A shall be
the sole Affected Party and all Transactions shall be Affected Transactions.
	 
	 	(v)	 	Regulation AB. Party A fails to comply with Part 6(n)(ii) of this Agreement.
With respect to the foregoing Additional Termination Event, Party A shall be the sole
Affected Party and all Transactions shall be Affected Transactions.
	 
	 	(vi)	 	Termination. Party B or the Trust Estate cease to exist. With respect to the
foregoing Additional Termination Event, Party B shall be the sole Affected Party and
all Transactions shall be Affected Transactions.
	 
	 	(vii)	 	Acceleration. The Trustee declares the Notes due and payable for any reason
and such declaration is (or becomes) unrescindable or irrevocable. With respect to the
foregoing Additional Termination Event, Party B shall be the sole Affected Party and
all Transactions shall be Affected Transactions.
	 
	 	(viii)	 	Redemption. Any mandatory redemption, auction call redemption, optional redemption,
tax redemption, clean-up call or other prepayment in full or repayment in full of all
Notes outstanding occurs under the Indenture (or any notice is given to that effect and
such mandatory redemption, auction call redemption, optional redemption, tax
redemption, clean-up call or other prepayment or repayment is not capable of being
rescinded); provided that, for the avoidance of doubt, any such redemption, clean-up
call or other prepayment shall be with respect to all outstanding Notes. With respect
to the foregoing Additional Termination Event, Party B shall be the sole Affected Party
and all Transactions shall be Affected Transactions.
	 
	 	(ix)	 	Default. Any Event of Default (as defined in the Indenture) occurs under the
Indenture (or any notice is given by the Trustee or any other authorized party to that
effect), the Notes have been declared due and payable under the Indenture (and such
declaration has not been rescinded and annulled in accordance with the Indenture), and
the Trustee, the Noteholders or any other party authorized under the terms of the
Indenture and Sale and Servicing Agreement and any other Transaction Documents, or by
law: (1) sells, liquidates or disposes of any of the Collateral under the Indenture;
(2) institutes Proceedings for the collection of all amounts payable under the
Indenture; (3) institutes Proceedings for the complete or partial foreclosure of the
Indenture with respect to the Collateral; or (4) exercises any remedies of a secured
party under the UCC with respect to the Collateral, and any such action is not to
judgment or final decree. With respect to the foregoing Additional Termination Event,
Party B shall be the sole Affected Party and all Transactions shall be Affected
Transactions.
	 
	 	(x)	 	Amendment. Any Transaction Document is amended or modified without the prior
written consent of Party A (provided that the prior written consent of Party A is
required under any such Transaction Document) and such amendment or modification could
have a materially adverse effect on Party A; provided, however, that it shall not be an
Additional Termination Event where such amendment or modification involves the
appointment of any successor trustee, securities administrator, master servicer or
servicer pursuant to the terms of the Indenture. With respect to the foregoing
Additional Termination Event, Party B shall be the sole Affected Party and all
Transactions shall be Affected Transactions.

3

 

	 	(xi)	 	The Insurer fails, at any time during the term of this Agreement, to have (a) a
claims paying ability rating of at least “A-” or higher from S&P, or (b) a financial
strength rating of at least “A3” or higher from Moody’s and either (x) an Event of
Default under this Agreement has occurred and is continuing with respect to which Party
B is the Defaulting Party or (y) a Termination Event has occurred and is continuing
with respect to which Party B is the Affected Party. With respect to the foregoing
Additional Termination Event, Party B shall be the sole Affected Party and all
Transactions shall be Affected Transactions.
	 
	 	(xii)	 	The Insurer fails to meet its payment obligations under the Swap Policy and
such failure is continuing under the Swap Policy. With respect to the foregoing
Additional Termination Event, Party B shall be the sole Affected Party and all
Transactions shall be Affected Transactions.
	 
	 	(xiii)	 	Notwithstanding anything in Section 6 of this Agreement to the contrary, any amounts
due as a result of the occurrence of an Additional Termination Event described in Parts
1(j)(v) through (xi) of this Schedule may be calculated prior to the Early Termination
Date and shall be payable on the Early Termination Date. With respect to the foregoing
Additional Termination Event, Party B shall be the sole Affected Party and all
Transactions shall be Affected Transactions.
	 
	 	(xiv)	 	Notwithstanding anything to the contrary in Section 6 of this Agreement, if
either an Event of Default or Termination Event has occurred and is continuing, (other
than with respect to Section 5(b)(i) or an Additional Termination Event described in
Part 1(j)(xi) or (xii) or in Part 1(j)(v) as a result of the failure of Party A to
comply with Part 6(n)(ii) of this Agreement), neither Party A nor Party B shall have
the right to designate an Early Termination Date unless either (a) the Insurer has
failed to pay any payment due to Party A under the terms and conditions of the Swap
Policy or (b) the Insurer has consented in advance to such designation in writing and
any purported designation in violation of this provision will, at the election of the
Insurer, be void and of no effect.
	 
	 	(xv)	 	At any time after the occurrence of an Event of Default for which Party B is
the Defaulting Party, the Insurer (so long as it has not failed to pay any payment due
to Party A under the terms and conditions of the Swap Policy) shall have the right
(but not the obligation), upon notice to Party A to designate an Early Termination
Date with respect to Party B with the same effect as if such designation were made by
Party A. For purposes of the foregoing sentence, an Event of Default for which Party
B is the Defaulting Party shall be considered to be continuing notwithstanding any
payments made by the Insurer pursuant to the Swap Policy. Each of Party A and Party B
acknowledge that, except as the Swap Policy may be otherwise endorsed, unless the
Insurer (so long as it has not failed to pay any payment due to Party A under the
terms and conditions of the Swap Policy) designates an Early Termination Date (as
opposed to merely consenting to such designation by one of the parties), payments due
from Party B because an Early Termination Date has been designated will not be
insured.

	(k)	 	Calculations. Notwithstanding Section 6 of this Agreement, if an Early Termination Date is
designated at a time when Party A is: (A) the sole Affected Party in respect of an Additional
Termination Event or a Tax Event Upon Merger; or (B) the Defaulting Party in respect of any
Event of Default, the following shall apply:

	 	(i)	 	The definition of “Market Quotation” shall be deleted in its entirety and
replaced with the following:

“Market Quotation” means, with respect to one or more Terminated Transactions, a
Firm Offer which is (1) made by a Reference Market-maker that is an Eligible
Replacement, (2) for an amount that would be paid to Party B (expressed as a
negative number) or by Party B (expressed as a positive number) in consideration of
an agreement between Party B and such Reference Market-maker to enter into a
transaction (the “Replacement Transaction”) that would have the effect of preserving
for such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction of
each

4

 

applicable condition precedent) by the parties under Section 2(a)(i) in respect of
such Terminated Transactions or group of Terminated Transactions that would, but for
the occurrence of the relevant Early Termination Date, have been required after that
date, (3) made on the basis that Unpaid Amounts in respect of the Terminated
Transaction or group of Transactions are to be excluded but, without limitation, any
payment or delivery that would, but for the relevant Early Termination Date, have
been required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included and (4) made in respect of a
Replacement Transaction with terms that are, in all material respects, no less
beneficial for Party B than those of this Agreement (save for the exclusion of
provisions relating to Transactions that are not Terminated Transactions) as
determined by Party B.

	 	(ii)	 	Settlement Amount. The definition of Settlement Amount shall be deleted in
its entirety and replaced with the following:

“Settlement Amount” means, with respect to any Early Termination Date, an
amount (as determined by Party B) equal to:

	 	(a)	 	if, on or prior to such Early Termination Date, a
Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally
binding, the Termination Currency Equivalent of the amount (whether
positive or negative) of such Market Quotation;
	 
	 	(b)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions has been accepted by Party B so as to become legally
binding and one or more Market Quotations from Approved Replacements
have been communicated to Party B and remain capable of becoming legally
binding upon acceptance by Party B, the Termination Currency Equivalent
of the amount (whether positive or negative) of the lowest of such
Market Quotations (for the avoidance of doubt, (I) a Market Quotation
expressed as a negative number is lower than a Market Quotation
expressed as a positive number and (II) the lower of two Market
Quotations expressed as negative numbers is the one with the largest
absolute value); or
	 
	 	(c)	 	if, on such Early Termination Date, no Market
Quotation for the relevant Terminated Transaction or group of Terminated
Transactions is accepted by Party B so as to become legally binding and
no Market Quotation from an Approved Replacement has been communicated
to Party B and remains capable of becoming legally binding upon
acceptance by Party B, Party B’s Loss (whether positive or negative and
without reference to any Unpaid Amounts) for the relevant Terminated
Transaction or group of Terminated Transactions.”

	 	(iii)	 	For the purpose of determining satisfaction of clause (4) of the definition of
Market Quotation, Party B (and the Trustee on behalf of Part B) shall act in a
commercially reasonable manner.
	 
	 	(iv)	 	At any time on or before the Latest Settlement Amount Determination Day at
which two or more Market Quotations remain capable of becoming legally binding upon
acceptance, Party B shall be entitled to accept only the lowest of such Market
Quotations.
	 
	 	(v)	 	If Party B requests Party A in writing to obtain Market Quotations, Party A
shall use its reasonable efforts to do so before the Latest Settlement Amount
Determination Day.
	 
	 	(vi)	 	If the Settlement Amount is a negative number, Section 6(e)(i)(3) of this
Agreement shall be deleted in its entirety and replaced with the following:

Second Method and Market Quotation. If Second Method and Market Quotation (without
giving effect to the amendment to “Market Quotation” in Part 1(k)(i)) apply, (1)
Party B shall pay

5

 

to Party A an amount equal to the absolute value of the Settlement Amount in respect
of the Terminated Transactions, (2) Party B shall pay to Party A the Termination
Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party A shall pay
to Party B the Termination Currency Equivalent of the Unpaid Amounts owing to Party
B; provided that, (i) the amounts payable under (2) and (3) shall be subject to
netting in accordance with Section 2(c) of this Agreement and (ii) notwithstanding
any other provision of this Agreement, any amount payable by Party A under (3) shall
not be netted-off against any amount payable by Party B under (1).

	(l)	 	Designation of Early Termination Date. Notwithstanding any other provision of this
Agreement, Party B shall not designate an Early Termination Date, and no transfer of any
rights or obligations under this Agreement shall be made by either party, unless each Rating
Agency has been given prior written notice of such amendment, designation or transfer.
	 
	(m)	 	Amendments. This Agreement shall not be amended unless the Rating Agency Condition is
satisfied.

Part 2. Tax Provisions

	(a)	 	Payer Tax Representations. For the purpose of Section 3(e) of this Agreement, each party
makes the following representation: None.
	 
	(b)	 	Gross Up. Section 2(d)(i)(4) shall not apply to Party B as X, and Section 2(d)(ii) shall not
apply to Party B as Y, in each case such that Party B shall not be required to pay any
additional amounts referred to therein.
	 
	(c)	 	Indemnifiable Tax. The definition of “Indemnifiable Tax” in Section 14 is deleted in its
entirety and replaced with the following:

“Indemnifiable Tax” means, in relation to payments by Party A, any Tax and, in relation to
payments by Party B, no Tax.

	(d)	 	Payee Tax Representations. For the purpose of Section 3(f) of this Agreement:

	 	(i)	 	Party A makes the following representation(s): None
	 
	 	(ii)	 	Party B makes the following representation(s): None.

	(e)	 	Tax Forms.

	 	(i)	 	Delivery of Tax Forms. For the purpose of Section 4(a)(i), and without
limiting Section 4(a)(iii), each party agrees to duly complete, execute and deliver to
the other party the tax forms specified below with respect to it (A) before the first
Payment Date under this Agreement, (B) promptly upon reasonable demand by the other
party and (C) promptly upon learning that any such form previously provided by Party
has become obsolete or incorrect.
	 
	 	 	 	In addition, in the case of any tax form that is a Periodic Tax Form required to be
delivered by Party B under this Agreement, Party B agrees to renew such tax form
prior to its expiration by completing, executing and delivering to Party A that tax
form (“Renewal Tax Form”) in each succeeding third year following the year of
execution of any such tax form or Renewal Tax Form delivered by Party B to Party A
under this Agreement so that Party A receives each Renewal Tax Form not later than
December 31 of the relevant year. “Periodic Tax Form” means any IRS Form W-8BEN,
W-8IMY or W-8EXP that is delivered by Party B to Party A without a U.S. Taxpayer
Identification Number.
	 
	 	(ii)	 	Tax Forms to be Delivered by Party A: None specified.
	 
	 	(iii)	 	Tax forms to be Delivered by Party B:

6

 

Party B will deliver a correct, complete and duly executed U.S. Internal Revenue
Service Form W—9 (or successor thereto) that eliminates U.S. federal back-up
withholding tax on payments to Party B under this Agreement.

Part 3. Documents

	(a)	 	Delivery of Documents. When it delivers this Agreement, each party shall also deliver its
Closing Documents to the other party in form and substance reasonably satisfactory to the
other party. For each Transaction, a party shall deliver, promptly upon request, a duly
executed incumbency certificate for the person(s) executing the Confirmation for that
Transaction on behalf of that party.
	 
	(b)	 	Closing Documents.

	 	(i)	 	For Party A, “Closing Documents” mean:

	 	(A)	 	an opinion of Party A’s counsel addressed to Party B, the
Insurer, and the Rating Agencies in form and substance acceptable to Party B,
the Insurer, and the Rating Agencies;
	 
	 	(B)	 	a duly executed incumbency certificate for each person
executing this Agreement for Party A, or in lieu thereof, a copy of the
relevant pages of its official signature book; and
	 
	 	(C)	 	each Credit Support Document (if any) specified for Party A in
this Schedule, together with a duly executed incumbency certificate for the
person(s) executing that Credit Support Document, or in lieu thereof, a copy of
the relevant pages of its official signature book.

	 	(ii)	 	For Party B, “Closing Documents” mean:

	 	(A)	 	an opinion of Party B’s counsel addressed to Party A, the
Insurer, and the Rating Agencies in form and substance acceptable to Party A,
the Insurer, and the Rating Agencies;
	 
	 	(B)	 	a duly executed copy of the Indenture and the other operative
documents relating thereto and referred to therein, executed and delivered by
the parties thereto;
	 
	 	(C)	 	[Reserved]
	 
	 	(D)	 	a duly executed certificate of an authorized officer of the
Owner Trustee of Party B certifying the name and true signature of each person
authorized to execute this Agreement and enter into Transactions for Party B;
and
	 
	 	(E)	 	upon the issuance of the Notes relating to the Transaction and
this Agreement, the duly executed Swap Policy.

Part 4. Miscellaneous

	(a)	 	Addresses for Notices. For purposes of Section 12(a) of this Agreement, all notices to a
party shall, with respect to any particular Transaction, be sent to its address, telex number
or facsimile number specified in the relevant Confirmation, provided that any notice under
Section 5 or 6 of this Agreement, and any notice under this Agreement not related to a
particular Transaction, shall be sent to a party at its address, telex number or facsimile
number specified below; provided, further, that any notice under the Credit Support Annex
shall be sent to a party at its address, telex number or facsimile number specified in the
Credit Support Annex.

7

 

	 	 	 	 	 	 	 
	 	 	To Party A:	 	 
	 	 	 	 	 	 	 

	 	 	 	 	Madrid Head Office:
	 	 	 	 	 	 	 

	 	 	 	 	Address:
	 	Ciudad Grupo Santander Edificio Marisma, Planta Baja

	 	 	 	 	 	 	28660 Boadilla del Monte, Madrid.

	 	 	 	 	Attn.:
	 	Swaps Administration

	 	 	 	 	Telex:
	 	42362 / 45928 BADER E

	 	 	 	 	Swift:
	 	BSCHESMM

	 	 	 	 	Fax:
	 	(341) 2571228

	 	 	 	 	Tel.:
	 	(341) 2893116

	 	 	 	 	 	 	For all purposes and with respect to Transactions through that Office

	 	 	 	 	 	 	 

	 	 	 	 	New York Branch:
	 	 	 	 	 	 	 

	 	 	 	 	Address:
	 	45 East 53rd Street, N.Y. 10022 New York

	 	 	 	 	Attn.:
	 	Swaps Department

	 	 	 	 	Telex:
	 	BANSAN 662480 UW

	 	 	 	 	Swift:
	 	BSCHUS33

	 	 	 	 	Fax:
	 	(212) 350 3535

	 	 	 	 	Tel.:
	 	(212) 350 3500

	 	 	 	 	 	 	Only with respect to Transactions through that Office

	 	 	 	 	 	 	 

	 	 	To Party B:
	 	 	 	 	 	 	 

	 	 	Santander Drive Auto Receivables Trust 2007-2
	 	 	c/o U.S. Bank Trust National Association
	 	 	300 Delaware Avenue, 9th Floor
	 	 	Wilmington, Delaware, 19801

	(b)	 	Process Agent. For the purpose of Section 13(c) of this Agreement:
	 
	 	 	Party A appoints as its Process Agent: Not applicable
	 
	 	 	Party B appoints as its Process Agent: Not applicable.
	 
	(c)	 	Offices. The provisions of Section 10(a) will apply to this Agreement.
	 
	(d)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement, neither party is a
Multibranch Party.
	 
	(e)	 	“Calculation Agent” means Party A; provided that if Party A is the Defaulting Party, the
Calculation Agent shall be any designated party mutually agreed to by the parties and the
Insurer (so long as no Swap Insurer Default has occurred and is continuing) until such time as
Party A is no longer the Defaulting Party.
	 
	 	 	“Swap Insurer Default” shall have the meaning given to “Insurer Default” (as defined in the
Sale and Servicing Agreement); provided that any reference therein to “Note Policy” is
hereby deleted and replaced with “Swap Policy”.
	 
	(f)	 	Credit Support Document.

	 	(i)	 	For Party A, the following is a Credit Support Document: the Credit Support
Annex dated the date hereof (the “Credit Support Annex”) and duly executed and
delivered by Party A and Party B and any Eligible Guarantee, if applicable.

8

 

	 	(ii)	 	For Party B, the following is a Credit Support Document: the Credit Support
Annex.

	(g)	 	Credit Support Provider.

	 	(i)	 	For Party A, Credit Support Provider means (1) Party A in its capacity as a
party to the Credit Support Annex and (2) the guarantor under any Eligible Guarantee.
	 
	 	(ii)	 	For Party B, the Credit Support Provider means Party B in its capacity as a
party to the Credit Support Annex.

	(h)	 	Governing Law. This Agreement will be governed by and construed in accordance with the law
(and not the law of conflicts except with respect to §§ 5-1401 and 5-1402 of the New York
General Obligations Law) of the State of New York.
	 
	(i)	 	Waiver of Jury Trial. To the extent permitted by applicable law, each party irrevocably
waives any and all right to trial by jury in any legal proceeding in connection with this
Agreement, any Credit Support Document to which it is a party, or any Transaction.
	 
	(j)	 	Netting of Payments. Section 2(c)(ii) of this Agreement will apply to all Transactions.
	 
	(k)	 	“Affiliate” has its meaning as defined in Section 14 of this Agreement, provided that Party B
shall be deemed to have no Affiliates.
	 
	(l)	 	Severability. If any term, provision, covenant, or condition of this Agreement, or the
application thereof to any party or circumstance, shall be held to be illegal, invalid or
unenforceable (in whole or in part) for any reason, the remaining terms, provisions, covenants
and conditions hereof shall continue in full force and effect as if this Agreement had been
executed with the illegal, invalid or unenforceable portion eliminated, so long as this
Agreement as so modified continues to express, without material change, the original
intentions of the parties as to the subject matter of this Agreement and the deletion of such
portion of this Agreement will not substantially impair the respective benefits or
expectations of the parties to this Agreement provided, however, that this severability
provision shall not be applicable if any provision of Sections 1(c), 2, 5, 6 or 13 (or any
definition or provision in Section 14 to the extent it relates to, or is used in or in
connection with any such Section) shall be held to be invalid or unenforceable.
	 
	(m)	 	Single Agreement. Section 1(c) shall be amended by adding the words “, the credit support
annex entered into between Party A and Party B in relation to this Agreement” after the words
“Master Agreement.”
	 
	(n)	 	Local Business Day. The definition of Local Business Day in Section 14 of this Agreement
shall be amended by the addition of the words “or any Credit Support Document” after “Section
2(a)(i)” and the addition of the words “or Credit Support Document” after “Confirmation”.

Part 5. Other Provisions

	(a)	 	2006 ISDA Definitions. This Agreement and each Transaction are subject to the 2006 ISDA
Definitions published by the International Swaps and Derivatives Association, Inc. (the “2006
ISDA Definitions”) and will be governed by the provisions of the 2006 ISDA Definitions. The
provisions of the 2006 ISDA Definitions are incorporated by reference in, and shall form part
of, this Agreement and each Confirmation. Any reference to a “Swap Transaction” in the 2006
ISDA Definitions is deemed to be a reference to a “Transaction” for purposes of this Agreement
or any Confirmation, and any reference to a “Transaction” in this Agreement or any
Confirmation is deemed to be a reference to a “Swap Transaction” for purposes of the 2006 ISDA
Definitions. The provisions of this Agreement (exclusive of the 2006 ISDA Definitions) shall
prevail in the event of any conflict between such provisions and the 2006 ISDA Definitions.

9

 

	(b)	 	Downgrade Provisions.

	 	(i)	 	Second Trigger Failure Condition. So long as a Moody’s Second Trigger
Downgrade Event has occurred, Party A shall, at its own expense use commercially
reasonable efforts, as soon as reasonably practicable, to either (i) furnish an
Eligible Guarantee of Party A’s obligations under this Agreement from a guarantor that
maintains the First Trigger Required Ratings and/or the Moody’s Second Trigger Ratings
Threshold or (ii) effect a transfer pursuant to Part 6(a).
	 
	 	(ii)	 	S&P Collateralization Event. It is acknowledged and agreed by the parties
hereto that this paragraph applies only to a party to this Agreement that is a
Financial Institution, as defined herein. It shall be a collateralization event if
either (A) the unsecured, short-term debt obligations of the Relevant Entity are rated
below “A-1” by S&P or (B) if the Relevant Entity does not have a short-term rating from
S&P, the unsecured, long-term senior debt obligations of a Relevant Entity are rated
below “A+” by S&P (“S&P Collateralization Event”). For the avoidance of doubt, the
parties hereby acknowledge and agree that notwithstanding the occurrence of an S&P
Collateralization Event, this Agreement and each Transaction hereunder shall continue
to be a Swap Agreement for purposes of the Transaction Documents.
	 
	 	 	 	“Rating Agency Condition” shall mean first receiving prior written confirmation from
S&P and Moody’s that their then-current ratings of the rated Notes will not be
downgraded or withdrawn by such Rating Agency.
	 
	 	(iii)	 	S&P Ratings Event. It shall be a ratings event if at any time after the date
hereof, the Relevant Entity fails to satisfy the Hedge Counterparty Ratings Threshold
or the Relevant Entity is no longer rated by S&P (“S&P Ratings Event”). Within 60
calendar days from the date an S&P Ratings Event has occurred and so long as such S&P
Ratings Event is continuing, Party A shall, at its sole expense, (x) obtain an Eligible
Replacement that upon satisfaction of the Rating Agency Condition, assumes the
obligations of Party A under this Agreement (through an assignment and assumption
agreement in form and substance reasonably satisfactory to Party B) or (y) obtain at
its sole cost and expense an Eligible Guarantee from an entity that satisfies the Hedge
Counterparty Rating Requirements subject to the satisfaction of the Rating Agency
Condition with respect to such guaranty.
	 
	 	(iv)	 	Downgrade Definitions.

	 	(A)	 	“Eligible Guarantee” means an unconditional and irrevocable
guarantee of all present and future obligations of Party A under this Agreement
(or, solely for purposes of the definition of Eligible Replacement, all present
and future obligations of such Eligible Replacement under this Agreement or its
replacement, as applicable) which is provided by a guarantor as principal
debtor rather than surety and which is directly enforceable by Party B, the
form and substance of which guarantee are subject to the Rating Agency
Condition with respect to S&P and reasonably acceptable to the Insurer, and
either (A) a law firm has given a legal opinion confirming that none of the
guarantor’s payments to Party B under such guarantee will be subject to
deduction or Tax collected by withholding and such opinion has been delivered
to Moody’s, or (B) such guarantee provides that, in the event that any of such
guarantor’s payments to Party B are subject to deduction or Tax collected by
withholding, such guarantor is required to pay such additional amount as is
necessary to ensure that the net amount actually received by Party B (free and
clear of any Tax collected by withholding) will equal the full amount Party B
would have received had no such deduction or withholding been required, or (C)
in the event that any payment under such guarantee is made net of deduction or
withholding for Tax, Party A is required, under Section 2(a)(i), to make such
additional payment as is necessary to ensure that the net amount actually
received by Party B from the guarantor will equal the full amount Party B would
have received had no such deduction or withholding been required.

10

 

	 	(B)	 	“Eligible Replacement” means an entity (A) that lawfully could
perform the obligations owing to Party B under this Agreement (or its
replacement, as applicable), (B) (I) (x) which has credit ratings from S&P that
satisfy the Hedge Counterparty Ratings Requirement or (y) all present and
future obligations of which entity owing to Party B under this Agreement (or
its replacement, as applicable) are guaranteed pursuant to an Eligible
Guarantee provided by a guarantor with credit ratings from S&P that satisfy the
Hedge Counterparty Ratings Requirement, in either case if S&P is a Rating
Agency, and (II)(x) which has credit ratings from Moody’s at least equal to the
Moody’s Second Trigger Ratings Threshold or (y) all present and future
obligations of which entity owing to Party B under this Agreement (or its
replacement, as applicable) are guaranteed pursuant to an Eligible Guarantee
provided by a guarantor with credit ratings from Moody’s at least equal to the
Moody’s Second Trigger Ratings Threshold, in either case if Moody’s is a Rating
Agency, and (C) that is reasonably acceptable to the Insurer.
	 
	 	(C)	 	“Financial Institution” means any bank, broker, dealer,
insurance company, structured investment vehicle or derivative product company.
	 
	 	(D)	 	“Firm Offer” means an offer which, when made, was capable of
becoming legally binding upon acceptance.
	 
	 	(E)	 	“First Trigger Required Ratings” means with respect to an
entity, either (i) where the entity is the subject of a Moody’s Short-term
Rating, such entity’s Moody’s Short-term Rating is “Prime-1” and the entity’s
long-term, unsecured and unsubordinated debt or counterparty obligations are
rated “A2” or above by Moody’s or (ii) where the entity is not the subject of a
Moody’s Short-term Rating, its long-term, unsecured and unsubordinated debt or
counterparty obligations are rated “A1” or above by Moody’s.
	 
	 	(F)	 	[Reserved]
	 
	 	(G)	 	“Hedge Counterparty Ratings Requirement” means (i) with respect
to a party hereto that is a Financial Institution, a short-term rating of at
least “A-2” by S&P, or a long-term rating of at least “BBB+” by S&P if it has
no short-term rating, or (ii) with respect to a party hereto that is not a
Financial Institution, a short-term rating of at least “A-1” by S&P, or a
long-term rating of at least “A+” by S&P if it has no short-term rating. For
the purpose of this definition, no direct or indirect recourse against one or
more shareholders of the substitute counterparty (or against any Person in
control of, or controlled by, or under common control with, any such
shareholder) shall be deemed to constitute a guarantee, security or support of
the obligations of the substitute counterparty.
	 
	 	(H)	 	“Hedge Counterparty Ratings Threshold” means (i) with respect
to a party hereto that is a Financial Institution, such entity has a short-term
rating of at least “A-2” by S&P, or a long-term rating of at least “BBB+” by
S&P if it has no short-term rating, or (ii) with respect to a party hereto that
is not a Financial Institution, a short-term rating of at least “A-1“by S&P or
a long-term rating of at least “A+” by S&P if it has no short-term rating. For
the avoidance of all doubts, the parties hereby acknowledge and agree that
notwithstanding the occurrence of an S&P Ratings Event, this Agreement and each
Transaction hereunder shall continue to be a Swap Agreement for purposes of the
Transaction Documents.
	 
	 	(I)	 	“Moody’s” means Moody’s Investors Service, Inc.
	 
	 	(J)	 	“Moody’s Second Trigger Downgrade Event” means that no Relevant
Entity has credit ratings from Moody’s at least equal to the Moody’s Second
Trigger Ratings Threshold.
	 
	 	(K)	 	“Moody’s Second Trigger Ratings Threshold” means, with respect
to Party A, the guarantor under an Eligible Guarantee, or an Eligible
Replacement, (i) if such entity has a

11

 

	 	 	 	short-term unsecured and unsubordinated debt rating from Moody’s, a
long-term unsecured and unsubordinated debt rating or counterparty rating
from Moody’s of “A3” and a short-term unsecured and unsubordinated debt
rating from Moody’s of “Prime-2”, or (ii) if such entity does not have a
short-term unsecured and unsubordinated debt rating from Moody’s, a
long-term unsecured and unsubordinated debt rating or counterparty rating
from Moody’s of “A3”.
	 
	 	(L)	 	“Moody’s Short-term Rating” means a rating assigned by Moody’s
under its short-term rating scale in respect of an entity’s short-term,
unsecured and unsubordinated debt obligations.
	 
	 	(M)	 	“Relevant Entity” means Party A and any guarantor under an
Eligible Guarantee in respect of all of Party A’s present and future
obligations under this Agreement.
	 
	 	(N)	 	“S&P” means Standard & Poor’s Rating Services, a division of
The McGraw-Hill Companies, Inc.

	(c)	 	Additional Representations. Section 3 of this Agreement is hereby amended by adding the
following Sections 3(g), (h), (i) and (j):

	 	“(g)	 	Non-Reliance. For any Relevant Agreement: (i) it acts as principal and not as
agent, (ii) it acknowledges that the other party acts only arm’s length and is not its
agent, broker, advisor or fiduciary in any respect, and any agency, brokerage, advisory
or fiduciary services that the other party (or any of its affiliates) may otherwise
provide to the party (or to any of its affiliates) excludes the Relevant Agreement,
(iii) it is relying solely upon its own evaluation of the Relevant Agreement (including
the present and future results, consequences, risks, and benefits thereof, whether
financial, accounting, tax, legal, or otherwise) and upon advice from its own
professional advisors, (iv) it understands the Relevant Agreement and those risks, has
determined they are appropriate for it, and willingly assumes those risks, (v) it has
not relied and will not be relying upon any evaluation or advice (including any
recommendation, opinion, or representation) from the other party, its affiliates or the
representatives or advisors of the other party or its affiliates (except
representations expressly made in the Relevant Agreement or an opinion of counsel
required thereunder); and (vi) if a party is acting as a Calculation Agent or Valuation
Agent, it does so not as the other party’s agent or fiduciary, but on an arm’s length
basis for the purpose of performing an administrative function in good faith.
	 
	 	 	 	“Relevant Agreement” means this Agreement, each Transaction, each Confirmation, any
Credit Support Document, and any agreement (including any amendment, modification,
transfer or early termination) between the parties relating thereto or to any
Transaction.
	 
	 	(h)	 	Eligibility. It is an “eligible contract participant” within the meaning of
the Commodity Exchange Act (as amended by the Commodity Futures Modernization Act of
2000).
	 
	 	(i)	 	FDIC Requirements. If it is a bank subject to the requirements of 12 U.S.C. §
1823(e), its execution, delivery and performance of this Agreement (including the
Credit Support Annex and each Confirmation) have been approved by its board of
directors or its loan committee, such approval is reflected in the minutes of said
board of directors or loan committee, and this Agreement (including the Credit Support
Annex and each Confirmation) will be maintained as one of its official records
continuously from the time of its execution (or in the case of any Confirmation,
continuously until such time as the relevant Transaction matures and the obligations
therefor are satisfied in full).
	 
	 	(j)	 	ERISA. It is not (i) an employee benefit plan as defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”) or a plan as
defined in Section 4975(e) of the Internal Revenue Code of 1986, as amended (the
“Code”), subject to Title I of ERISA or Section 4975 of the Code, or a plan as so
defined but which is not subject to Title I of ERISA or Section 4975 of the

12

 

	 	 	 	Code (each, an “ERISA Plan”), (ii) a person or entity acting on behalf of an ERISA Plan,
or (iii) a person or entity the assets of which constitute assets of an ERISA Plan.”

	(d)	 	Recorded Conversations. Each party and any of its Affiliates may electronically record any
of its telephone conversations with the other party or with any of the other party’s
Affiliates in connection with this Agreement or any Transaction, and any such recordings may
be submitted in evidence in any proceeding to establish any matters pertinent to this
Agreement or any Transaction.

Part 6. Additional Terms

	(a)	 	Transfers by Party A.

	 	(i)	 	Section 7 of this Agreement shall not apply to Party A and, subject to Part
6(a)(ii), Party A shall not transfer, whether by way of security or otherwise, any
interest or obligation in or under this Agreement without first satisfying the Rating
Agency Condition (with respect to S&P) and without the prior written consent of Party
B and the Insurer; provided that, to the extent that Party A or Party B makes a
transfer pursuant to this Part 6, it shall first provide prior written notice to the
Rating Agencies of such transfer; provided that, to avoid any doubt, the parties
hereto acknowledge and agree that notwithstanding any provision in the Agreement to
the contrary (including, but not limited to Part 6(a)(ii)), with respect to any and
all transfers, the Rating Agency Condition (with respect to S&P) must in any event be
satisfied.
	 
	 	(ii)	 	Subject to Part 1(l), Party A may (at its own cost) transfer its rights and
obligations with respect to this Agreement to any other entity (a “Transferee”) that
is an Eligible Replacement through a novation or other assignment and assumption
agreement or similar agreement in form and substance reasonably satisfactory to Party
B; provided that:

	 	(A)	 	the Transferee contracts with Party B on terms that (x) are
identical to the terms of this Agreement in respect of any obligation (whether
absolute or contingent) to make payment or delivery after the effective date of
such transfer and (y) insofar as they do not relate to payment or delivery
obligations, are, in all material respects, no less beneficial for Party B than
the terms of this Agreement immediately before such transfer;
	 
	 	(B)	 	unless such transfer is effected for the purpose of Section
6(b)(ii) or at a time when First Rating Trigger Requirements apply, Party B has
determined that the condition in Part 6(a)(ii)(A)(y) above is satisfied.
	 
	 	 	 	The “First Rating Trigger Requirements” shall apply so long as no Relevant
Entity has the First Trigger Required Ratings.
	 
	 	 	 	An entity shall have the “First Trigger Required Ratings” (A) where such
entity is the subject of a Moody’s Short-term Rating, if such rating is
Moody’s “Prime-1” and its long-term, unsecured and unsubordinated debt or
counterparty obligations are rated “A2” or above by Moody’s and (B) where
such entity is not the subject of a Moody’s Short-term Rating, if its
long-term, unsecured and unsubordinated debt or counterparty obligations are
rated “A1” or above by Moody’s.
	 
	 	(C)	 	as of the date of such transfer the Transferee will not be
required to withhold or deduct on account of a Tax from any payments under this
Agreement unless the Transferee will be required to make payments of additional
amounts pursuant to Section 2(d)(i)(4) of this Agreement in respect of such
Tax, (B) a Termination Event or Event of Default does not occur under this
Agreement as a result of such transfer, (C) Party A receives confirmation from
each Rating Agency (other than Moody’s) that transfer to the Transferee does
not violate the Rating Agency Condition, and (D) Party A obtains the

13

 

	 	 	 	prior written consent of Insurer. Following such transfer, all references
to Party A shall be deemed to be references to the Transferee.

	 	(iii)	 	In determining whether or not a transfer satisfies the condition in Part
6(a)(ii)(A)(y) above, Party B shall act in a commercially reasonable manner.
	 
	 	(iv)	 	[Reserved].
	 
	 	(v)	 	If an entity has made a Firm Offer (which remains capable of becoming legally
binding upon acceptance) to be the transferee of a transfer to be made in accordance
with Part 6(a)(ii) above, Party B shall, at Party A’s written request and cost, take
any reasonable steps required to be taken by it to effect such transfer.
	 
	 	(vi)	 	Section 6(b)(ii) shall be amended by (i) replacing the words “all its rights
and obligations under this Agreement in respect of the Affected Transactions to
another of its Offices or Affiliates so that such Termination Event ceases to exist”
with the words “its rights and obligations under this Agreement in respect of the
Affected Transactions in accordance with Part 6(a) of the Schedule (on the basis that
each reference to “Agreement” in Part 6(a) is replaced by the words “Agreement in
respect of the Affected Transactions”)” and (ii) the deletion of the sentence: “Any
such transfer by a party under this Section 6(b)(ii) will be subject to and
conditional upon the prior written consent of the other party, which consent will not
be withheld if such other party’s policies in effect at such time would permit it to
enter into transactions with the transferee on the terms proposed.”.
	 
	 	(vii)	 	Following a transfer in accordance with Part 6(a)(ii), all references to
Party A shall be deemed to be references to the Transferee.
	 
	 	(viii)	 	Except as specified otherwise in the documentation evidencing a transfer, a transfer
of all the obligations of Party A made in compliance with this Part 6(a) will
constitute an acceptance and assumption of such obligations (and any related interests
so transferred) by the transferee, a novation of the transferee in place of Party A
with respect to such obligations (and any related interests so transferred), and a
release and discharge by Party B of Party A from, and an agreement by Party B not to
make any claim for payment, liability, or otherwise against Party A with respect to,
such obligations from and after the effective date of the transfer.

	(b)	 	Permitted Security Interest. For purposes of Section 7 of this Agreement, Party A hereby
consents to the Permitted Security Interest, subject to the provisions of paragraph (c) below.
	 
	 	 	“Permitted Security Interest” means the collateral assignment by Party B of the Swap
Collateral to the Trustee pursuant to the Indenture, and the granting to the Trustee of a
security interest in the Swap Collateral pursuant to the Indenture.
	 
	 	 	“Swap Collateral” means all right, title and interest of Party B in this Agreement, each
Transaction hereunder, and all present and future amounts payable by Party A to Party B
under or in connection with this Agreement or any Transaction governed by this Agreement,
whether or not evidenced by a Confirmation, including, without limitation, any transfer or
termination of any such Transaction.
	 
	 	 	“Trustee” means Wells Fargo Bank, National Association or any successor acting as indenture
trustee pursuant to the Indenture.
	 
	(c)	 	Effect of Permitted Security Interest.

	 	(i)	 	Notwithstanding the Permitted Security Interest, Party B shall not be released
from any of its obligations under this Agreement or any Transaction, and Party A may
exercise its rights and
remedies under this Agreement without notice to, or the consent of the Trustee or
any Noteholder except as otherwise expressly provided in this Agreement.

14

 

	 	(ii)	 	Party A’s consent to the Permitted Security Interest is expressly limited to
the Trustee for the benefit of the secured parties under the Indenture, and Party A
does not consent to the sale or transfer by the Trustee of the Swap Collateral to any
other person or entity (other than a successor to the Trustee under the Indenture
acting in that capacity).
	 
	 	(iii)	 	Party B hereby acknowledges that, as a result of the Permitted Security
Interest, all of its rights under this Agreement, including any Transaction, have been
assigned to the Trustee pursuant to the Indenture and notwithstanding any other
provision in this Agreement, Party B may not take any action hereunder to exercise any
of such rights without the prior written consent of the Trustee, including, without
limitation, providing any notice under this Agreement the effect of which would be to
cause an Early Termination Date to occur or be deemed to occur. If Party B gives any
notice to Party A for the purposes of exercising any of Party B’s rights under this
Agreement, Party A shall have the option of treating that notice as void unless that
notice is signed by the Trustee acknowledging its consent to the provisions of that
notice. Nothing herein shall be construed as requiring the consent of the Owner
Trustee, the Trustee or any Noteholder for the performance by Party B of any of its
obligations hereunder.
	 
	 	(iv)	 	Except as expressly provided in this Agreement for any transfer (as provided in
Part 6 hereof), Event of Default, Termination Event, Additional Termination Event,
Party A and Party B may not enter into any agreement to dispose of any Transaction,
whether in the form of a termination, unwind, transfer or otherwise without the prior
written consent of the Trustee and Insurer.
	 
	 	(v)	 	Except as expressly provided in this Agreement, no amendment, modification, or
waiver in respect of this Agreement will be effective unless (A) evidenced by a writing
executed by each party hereto, and (B) the Trustee and Insurer has acknowledged its
consent thereto in writing and each Rating Agency (other than Moody’s) confirms that
the amendment, modification or waiver will not cause the reduction or withdrawal of its
then current rating on any Notes under the Indenture.
	 
	 	(vi)	 	No transaction other than the Transaction or Transactions evidenced by
Confirmations of even date with this Agreement (other than replacement Transactions
entered into in compliance with the terms of this Agreement) may be entered into under
this Agreement without the prior consent of the Insurer.

	(d)	 	Payments. All payments to Party B under this Agreement or any Transaction shall be made to
the appropriate account under the Transaction Documents.
	 
	(e)	 	Set-off. Except as otherwise provided in this Schedule, Party A and Party B hereby waive any
and all right of set-off with respect to any amounts due under this Agreement or any
Transaction, provided that nothing herein shall be construed to waive or otherwise limit the
netting provisions contained in Sections 2(c) and 6 of this Agreement or the setoff rights
contained in the Credit Support Annex. Section 6(e) shall be amended by the deletion of the
following sentence: “The amount, if any, payable in respect of an Early Termination Date and
determined pursuant to this Section will be subject to any Set-off”.
	 
	(f)	 	Indenture.

	 	(i)	 	Party B hereby acknowledges that Party A is a secured party under the Indenture
with respect to this Agreement and a third-party beneficiary under the Indenture and
Party B agrees for the benefit of Party A that neither it nor any other Person will
take any action (whether in the form of an amendment, a modification, supplement,
waiver, approval, consent or otherwise) which may have a material adverse effect with
respect to the rights, interest or benefits granted to Party A under the Indenture with
respect to this Agreement, whether or not this Agreement is specifically referred to
or identified therein without the prior written consent of Party A (to the extent
such consent is required under the Indenture).

15

 

	 	 	 	“Indenture” means that certain Indenture, by and among Party B as Issuer, and the
Trustee, dated as of September 5, 2007, as the same may be amended, modified,
supplemented or restated from time to time.
	 
	 	(ii)	 	On the date Party B executes and delivers this Agreement and on each date on
which a Transaction is entered into, Party B hereby represents and warrants to Party A:
that the Indenture is in full force and effect; that Party B is not party to any
separate agreement with any of the parties to the Indenture that would have the effect
of diminishing or impairing the rights, interests or benefits that have been granted to
Party A under, and which are expressly set forth in, the Indenture; that Party B’s
obligations under this Agreement are secured under the Indenture; that this Agreement
constitutes a “Swap Agreement” under the Transaction Documents applicable to it; that
each Transaction entered into under this Agreement is a Swap Agreement under the
Transaction Documents applicable to it; that Party A constitutes a Swap Provider under
the Transaction Documents applicable to it; that no Event of Default has occurred and
is continuing as defined in the Transaction Documents applicable to it; that nothing
herein violates or conflicts with any of the provisions of the Transaction Documents
applicable to it or any other documents executed in connection therewith. In addition,
on each date on which a Transaction is entered into, Party B hereby represents and
warrants to Party A: that the Transaction meets all of the requirements under the
Transaction Documents applicable to it and does not violate or conflict with any of the
provisions of the Transaction Documents applicable to it or any other documents
executed in connection therewith; and that under the terms of the Transaction Documents
applicable to it, neither the consent of the Owner Trustee, the Trustee nor of any of
the Noteholders under the Transaction Documents is required for Party B to enter into
that Transaction or for Party A to be entitled for that Transaction to the rights,
interests and benefits granted to Party A under the Transaction Documents.
	 
	 	(iii)	 	Party B will provide at least ten days’ prior written notice to Party A of any
proposed amendment or modification to the Transaction Documents.

	(g)	 	Consent to Notice & Communications. Party B hereby consents to the giving to the Trustee of
notice by Party A of Party A’s address and telecopy and telephone numbers for all purposes of
the Transaction Documents, and in addition, Party A shall also be entitled at any time to
provide the Trustee with copies of this Agreement, including all Confirmations. In addition,
Party A shall not be precluded from communicating with the Trustee or any party to, or any
third party beneficiary under, the Transaction Documents for the purpose of exercising,
enforcing or protecting any of Party A’s rights or remedies under this Agreement or any
rights, interests or benefits granted to Party A under the Transaction Documents.
	 
	(h)	 	No Bankruptcy Petition. Without impairing any right afforded to it under the Transaction
Documents as a third party beneficiary, Party A shall not institute against or cause any other
person to institute against, or join any other person in instituting against Trust any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any federal or state bankruptcy, dissolution or similar law, for a period of
one year and one day following indefeasible payment in full of the Notes. Nothing shall
preclude, or be deemed to stop, Party A (i) from taking any action prior to the expiration of
the aforementioned one year and one day period, or if longer the applicable preference period
then in effect, in (A) any case or proceeding voluntarily filed or commenced by Party B or (B)
any involuntary insolvency proceeding filed or commenced by a Person other than Party A, or
(ii) from commencing against Party B or any of the Collateral any legal action which is not a
bankruptcy, reorganization, arrangement, insolvency, moratorium, liquidation or similar
proceeding. This Part 6(h) shall survive termination of this Agreement.
	 
	(i)	 	Limitation of Liability. It is expressly understood and agreed by the parties hereto that
(i) this Agreement is executed and delivered by the Trustee not individually or personally but
solely as trustee of the Trust, in the exercise of the powers and authority conferred and
vested in it, (ii) each of the representations, undertakings and agreements herein made on the
part of the Trust is made and intended not as a personal
representation, undertaking or agreement by the Trustee but is made and intended for the
purpose of binding only the Trust, (iii) nothing herein contained shall be construed as
creating any liability on the part of the Trustee, individually or personally, to perform
any covenant either expressed or implied contained

16

 

	 	 	herein, all such liability, if any, being
expressly waived by the parties hereto and by any Person claiming by, through or under the
parties hereto and (iv) under no circumstances shall the Trustee be personally liable for
the payment of any indebtedness or expenses of the Trust or be liable for the breach or
failure of any obligation, representation, warranty or covenant made or undertaken by the
Trust under this Agreement.
	 
	(j)	 	Party A Rights Solely Against Collateral. The liability of Party B to Party A hereunder is
limited in recourse to the assets of the Trust, and to distributions of interest proceeds and
principal proceeds thereon applied in accordance with the terms of the Indenture. Upon
application of and exhaustion of all of the assets of the Trust (and proceeds thereof) in
accordance with the Indenture, Party A shall not be entitled to take any further steps against
Party B to recover any sums due but still unpaid hereunder or thereunder, all claims in
respect of which shall be extinguished. Notwithstanding the foregoing or anything herein to
the contrary, Party A shall not be precluded from declaring an Event of Default or from
exercising any other right or remedy as set forth in this Agreement or the Indenture. This
Part 6(j) shall survive termination of this Agreement.
	 
	(k)	 	Change of Account. Section 2(b) of this Agreement is hereby amended by the addition of the
words “to another account in the same legal and tax jurisdiction as the original account”
following the word “delivery” in the first line thereof.
	 
	(l)	 	Notice of Certain Events or Circumstances. Each party agrees, upon learning of the
occurrence or existence of any event or condition that constitutes (or that with the giving of
notice or passage of time or both would constitute) an Event of Default or Termination Event
with respect to such party, promptly to give the other party notice of such event or condition
(or, in lieu of giving notice of such event or condition in the case of an event or condition
that with the giving of notice or passage of time or both would constitute an Event of Default
or Termination Event with respect to the party, to cause such event or condition to cease to
exist before becoming an Event of Default or Termination Event); provided that failure to
provide notice of such event or condition pursuant to this Part 6(l) shall not constitute an
Event of Default or a Termination Event. Each party agrees to provide to the other party any
other notice reasonably expected to be provided to facilitate compliance with the terms of
this Agreement and the Credit Support Document.
	 
	(m)	 	Regarding Party A. Party B acknowledges and agrees that Party A has had and will have no
involvement in and, accordingly Party A accepts no responsibility for: (i) the establishment,
structure, or choice of assets of Party B; (ii) the selection of any person performing
services for or acting on behalf of Party B; (iii) the selection of Party A as the
Counterparty; (iv) the terms of the Notes, (v) other than with respect to the Prospectus
Information (as defined herein), the preparation of or passing on the disclosure and other
information contained in any offering circular or offering document for the Notes, the
Transaction Documents, or any other agreements or documents used by Party B or any other party
in connection with the marketing and sale of the Notes; (vi) the ongoing operations and
administration of Party B, including the furnishing of any information to Party B which is not
specifically required under this Agreement or (vii) any other aspect of Party B’s existence.
	 
	(n)	 	Compliance with Regulation AB.

	 	(i)	 	Party A has been advised by Party B that Santander Consumer USA Inc. (the
“Sponsor”), and Party B are required under Regulation AB under the Securities Act of
1933 and the Securities Exchange Act of 1934, as amended (“Regulation AB”), to disclose
certain information regarding Party A. Such information may include financial
information to the extent required under Item 1115 of Regulation AB.
	 
	 	(ii)	 	If required, upon written request, Party A shall provide to Party B or the
Sponsor the applicable financial information described under Item 1115(b) of Regulation
AB (the “Reg AB Financial Information”) within ten (10) Business Days of receipt of a written request for such
Reg AB Financial Information by the Sponsor or Party B (the “Response Period”), so
long as the Sponsor or Party B has reasonably determined, in good faith, that such
information is required under

17

 

	 	 	 	Regulation AB. In the event that Party A does not
provide any such Reg AB Financial Information by the end of the related Response
Period, Party A shall promptly, but in no event later than ten (10) Local Business
Days following the end of such Response Period shall either, at Party A’s own
expense (1) find a replacement counterparty that (A) has the ability to provide its
applicable Reg AB Financial Information, (B) satisfies the Rating Agency Condition,
(C) is acceptable to Party B and the Insurer and (D) enters into an agreement with
Party B substantially in the form of this Agreement (such replacement counterparty,
a “Reg AB Approved Entity”); (2) obtain a guaranty of Party A’s obligations under
this Agreement from an affiliate of Party A that complies with the financial
information disclosure requirements of Item 1115 of Regulation AB, and cause such
affiliate to provide Swap Financial Disclosure and any future Swap Financial
Disclosure and other information pursuant to clause (1), such that disclosure
provided in respect of such affiliate will satisfy any disclosure requirements
applicable to the Swap Provider, or (3) transfer Eligible Collateral to Party B’s
Custodian in an amount (taking into account any amount posted pursuant to Part 5(b)
herein, if any) which is sufficient, as reasonably determined in good faith by the
Sponsor, to reduce the aggregate significance percentage below 10% (or, so long as
Party A is able to provide the Swap Financial Disclosure required pursuant to Item
1115(b)(1) of Regulation AB, below 20%, in the event Party A is requested to provide
the Swap Financial Disclosure required pursuant to Item 1115(b)(2) of Regulation
AB).
	 
	 	(iii)	 	If Party B or the Sponsor request (in writing) the Reg AB Financial
Information from Party A, then the Sponsor or Party B will promptly (and in any event
within one (1) Business Day of the date of the request for the Reg AB Financial
Information) provide Party A with a written explanation of how the significance
percentage was calculated.
	 
	 	(iv)	 	Party A represents and warrants that the statements appearing in the Prospectus
Supplement dated August 22, 2007, or in the Prospectus, dated August 6, 2007, each
relating to Santander Drive Auto Receivables Trust 2007-2 under the headings “The Swap
Counterparty” (the “Prospectus Information”) are true and correct in all material
respects and do not contain any untrue statement of a material fact or omit to state a
material fact required to be stated therein or necessary to make the statements therein
not misleading.

	 	(v)	(A)	 	Party A shall indemnify and hold harmless Party B, the Sponsor, their
respective directors or officers and any person controlling Party B or the Sponsor,
from and against any and all losses, claims, damages and liabilities caused by any
untrue statement or alleged untrue statement of a material fact contained in the
Prospectus Information or in any Reg AB Financial Information that Party A provides to
Party B or the Sponsor pursuant to this Part 6(n) (the “Party A Information”) or caused
by any omission or alleged omission to state in the Party A Information a material fact
required to be stated therein or necessary to make the statements therein not
misleading.

	 	(B)	 	The Sponsor shall indemnify and hold harmless Party A, its
respective directors or officers and any person controlling Party A, from and
against any and all losses, claims, damages and liabilities caused by any
untrue statement or alleged untrue statement of a material fact contained in
the Preliminary Prospectus Supplement referred to in clause (iv) above
(together with the accompanying base Prospectus), the Prospectus Supplement
referred to in clause (iv) above (together with the accompanying base
Prospectus) (collectively, the “Prospectus Disclosure”) or caused by any
omission or alleged omission to state in the Prospectus Disclosure a material
fact required to be stated therein or necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading;
provided, however, that the Sponsor shall not be liable in any such case to the
extent that any such loss, claim, damage or liability arises out of or is based
upon any such untrue statement or alleged untrue statement in or omission or
alleged omission made in any such Prospectus Disclosure in the Party A
Information.

	 	(vi)	 	Promptly after the indemnified party under Part 6(n)(v) receives notice of the
commencement of any such action, the indemnified party will, if a claim in respect
thereof is to be made pursuant to 

18

 

	 	 	 	Part 6(n)(v), promptly notify the indemnifying party
in writing of the commencement thereof. In case any such action is brought against the
indemnified party, and it notifies the indemnifying party of the commencement thereof,
the indemnifying party shall be entitled to appoint counsel of the indemnifying party’s
choice at the indemnifying party’s expense to represent the indemnified party in any
action for which indemnification is sought (in which case the indemnifying party shall
not thereafter be responsible for the fees and expenses of any separate counsel
retained by the indemnified party except as set forth below); provided, however, that
such counsel shall be reasonably satisfactory to the indemnified party.
Notwithstanding the indemnifying party’s election to appoint counsel to represent the
indemnified party in an action, the indemnified party shall have the right to employ
separate counsel (including local counsel), and the indemnifying party shall bear the
reasonable fees, costs and expenses of such separate counsel if (i) such indemnified
party shall have been advised by such counsel that there may be one or more legal
defenses available to it which are different from or additional to those available to
the indemnifying party and in the reasonable judgment of such counsel it is advisable
for such indemnified party to employ separate counsel, (ii) a conflict or potential
conflict exists (based on advice of counsel to the indemnified party) between the
indemnified party and the indemnifying party, (iii) the indemnifying party shall not
have employed counsel reasonably satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of the institution of such
action or (iv) the indemnifying party shall authorize the indemnified party to employ
separate counsel at the expense of the indemnifying party. The indemnifying party will
not, without the prior written consent of the indemnified party, settle or compromise
or consent to the entry of any judgment with respect to any pending or threatened
claim, action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder (whether or not the indemnified party is an actual or potential
party to such claim or action) unless such settlement, compromise or consent includes
an unconditional release of each indemnified party from all liability arising out of
such claim, action, suit or proceeding. No indemnified party will settle or compromise
or consent to the entry of any judgment with respect to any pending or threatened
claim, action, suit or proceeding in respect of which indemnification or contribution
may be sought hereunder without the consent of the indemnifying party, which consent
shall not be unreasonably withheld.

	(o)	 	Subrogation. Each of Party A and Party B hereby acknowledges that, to the extent of payments
made by the Insurer to Party A under the Swap Policy, the Insurer shall be fully subrogated to
the rights of Party A against Party B under the Transaction to which such payments relate,
including, but not limited to, the right to receive payment from Party B and the enforcement
of any remedies against Party B and the availability of any collateral posted. Party A hereby
agrees to assign to the Insurer its right to receive payment from Party B under any
Transaction to the extent of any payment thereunder by the Insurer to Party A. Party B hereby
acknowledges and consents to the assignment by Party A to the Insurer of any rights and
remedies that Party A has under any Transaction or any other document executed in connection
herewith.
	 
	(p)	 	Expenses. Party B agrees to reimburse the Insurer immediately and unconditionally upon
demand for all reasonable expenses incurred by the Insurer in connection with the issuance of
the Swap Policy and the enforcement by the Insurer of Party B’s obligations under this
Agreement and any other documents executed in connection with the execution and delivery of
this Agreement, including, but not limited to, fees (including professional fees), costs and
expenses incurred by the Insurer which are related to or resulting from any breach by Party B
of its obligations hereunder.
	 
	(q)	 	Notices. A copy of each notice or other communication between the parties with respect to
this Agreement must be sent at the same time to the Insurer.
	 
	(r)	 	Insurer Provisions. Notwithstanding anything to the contrary in the Agreement, the
following provisions shall apply to any Transactions to which the Swap Policy issued by MBIA
Insurance Corporation (“Insurer”), for the account of Party B, as principal, and for the
benefit of Party A, as beneficiary, relates (“Insured Transactions”).

19

 

	 	(i)	 	No suspension of payments. Notwithstanding Section 2(a)(iii) of this
Agreement, Party A shall not suspend any payments due under an Insured Transaction
under Section 2(a)(iii) unless:

	 	(A)	 	Insurer is in default in respect of any payment obligations
under the Swap Policy; or
	 
	 	(B)	 	Insurer has not provided to Party A, in accordance with the
terms of this Agreement, any ministerial notices (including, and limited to,
wire instructions for payments) required by this Agreement to be provided by
Party B to Party A, which notices Party B has failed to provide, and Party A
has given three (3) Business Days’ notice to Insurer of such failure.

	 	(ii)	 	Representations and agreements. Each party agrees that each of its
representations and agreements in this Agreement is expressly made to and for the
benefit of Insurer.
	 
	 	(iii)	 	Third-party beneficiary. Party A and Party B hereby each acknowledge and agree
that Insurer shall be an express third-party beneficiary (and not merely an incidental
third-party beneficiary) of this Agreement and the obligations of such party under any
Insured Transaction, and as such, entitled to enforce the Agreement and the terms of any
such Insured Transaction against such party on its own behalf and/or on behalf of the
holders of the related obligations and otherwise shall be afforded all remedies
available hereunder or otherwise afforded by law against the parties hereto to redress
any damage or loss incurred by Insurer including, but not limited to, fees (including
professional fees), costs and expenses incurred by Insurer which are related to, or
resulting from any breach by such party of its obligations hereunder.
	 
	 	(iv)	 	Policy coverage. Party A and Party B hereby each acknowledge and agree that
Insurer’s obligation with respect to Insured Transactions shall be limited to the terms
of the Swap Policy. Notwithstanding Section 2(e) or any other provision of this
Agreement, Insurer shall not have any obligation to pay interest on any amount payable
by Party B under this Agreement.
	 
	 	(v)	 	Isolation of Insured Transactions in designating an Early Termination Date.
Notwithstanding Section 6 of this Agreement, any designation of an Early Termination
Date in respect of the Insured Transactions by Insurer or by Party A with the consent of
Insurer pursuant to Part 1(j)(xiv) above shall apply only to the Insured Transactions
and not to any other Transaction under this Agreement, unless Party A shall designate an
Early Termination Date in respect of such other Transaction. Nothing contained in this
paragraph (v) shall affect the rights of Party A under this Agreement to designate an
Early Termination Date in respect of any Transaction other than the Insured
Transactions, which designation shall not apply to the Insured Transactions unless
expressly provided in such designation and unless Insurer shall have designated, or
consented to the designation by Party A of, an Early Termination Date in respect of the
Insured Transactions in accordance with Part 1(j)(xiv) above.
	 
	 	(vi)	 	No netting. Notwithstanding Section 2(c) of this Agreement, in no event shall
either Party A or Party B be entitled to net its payment obligations in respect of the
Insured Transactions against the payment obligations of the other party in respect of
other Transactions under this Agreement if such Transactions are not Insured
Transactions, nor may either Party A or Party B net the payment obligations of the other
party under Transactions that are not Insured Transactions against the payment
obligations of such party under Insured Transactions, it being the intention of the
parties that their payment obligations under Insured Transactions be treated separate
and apart from all other Transactions. Section 6(e) of this Agreement shall apply to
all Insured Transactions with the same effect as if the Insured Transactions constituted
a single master agreement. Notwithstanding Section 6(e) of this Agreement, the amount
payable under Section 6(e) of this Agreement upon the termination of any Insured
Transaction shall be determined without regard to any Transactions other than the
Insured Transactions, it being the intention of the parties that their payment
obligations under the Insured Transactions be treated separate and apart from all other
Transactions unless otherwise specified in such other Transaction and agreed to in
writing by Insurer.

20

 

	 	(vii)	 	No set-off or counterclaim. In no event shall either Party A or Party B be
entitled to:

	 	(A)	 	set-off its payment obligations in respect of an Insured
Transaction against the payment obligations of the other party (whether by
counterclaim or otherwise) if such obligations are not Insured Transactions, or

	 	(B)	 	net the payment obligations of the other party that are not
with respect to Insured Transactions against the payment obligations of such
party under Insured Transactions,
	 
	 	it being the intention of the parties that their payment obligations under Insured
Transactions be treated separate and apart from all other obligations.
Notwithstanding Section 6(e) of this Agreement, the amount payable under Section
6(e) of this Agreement upon the termination of any Insured Transaction shall be
determined without regard to any obligation other than those under the Insured
Transactions, it being the intention of the parties that their payment obligations
under the Insured Transactions be treated separate and apart from all other
obligations unless otherwise specified in such other obligation and agreed to in
writing by Insurer.

	 	(viii)	 	“Reference Market Makers.” The definition of “Reference Market-makers” set forth in
Section 12 of the Agreement shall be amended in its entirety to read as follows:
	 
	 	 	 	“Reference Market-makers” means four (4) leading dealers in the relevant swap
market selected by the party determining a Market Quotation in good faith (a) from
among dealers of the highest credit standing which satisfy all the criteria that
such party applies generally at the time in deciding whether to offer or to make an
extension of credit and (b) to the extent practicable, from among dealers having an
office in the same city. The rating classification assigned to any outstanding
long-term senior debt securities issued by such dealers shall be at least (1) “Aa3”
or higher as determined by Moody’s Investors Service Inc., (2) “AA-” or higher as
determined by Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc. or (3) an equivalent investment grade rating determined by a
nationally-recognized rating service acceptable to both parties, provided, however,
that, in any case, if Market Quotations cannot be determined by four (4) such
dealers, the party making the determination of the Market Quotation may designate,
with the consent of the other party and Insurer, one (1) or more leading dealers
whose long-term senior debt bears a lower investment grade rating.

Part 7. Definitions

“Transaction Documents” shall have the meaning ascribed to such term in Appendix A
of that certain Sale and Servicing Agreement dated as of September 5, 2007, as
amended, modified or supplemented from time to time, among Santander Drive Auto
Receivables LLC, as seller, Party B, as Issuer, Santander Consumer USA Inc., as
Servicer, and Wells Fargo Bank, National Association, as Indenture Trustee.

All other capitalized terms used herein and not defined herein shall have the
definitions ascribed to them in the Indenture and Credit Support Annex.

[Signatures follow]

21

 

     IN WITNESS WHEREOF the parties have executed this Schedule on the respective dates specified
below with effect from the date specified on the first page of this document.

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	BANCO SANTANDER S.A.	 	 	 	SANTANDER DRIVE AUTO
RECEIVABLES TRUST 
2007-2	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	By:  U.S. BANK TRUST NATIONAL ASSOCIATION, not in its
individual capacity, but solely as Owner Trustee
	 	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	By:	 	/s/ Juan Bosco Nazar

 
	 	 	 	By:	 	/s/ Nicole Poole

 
	 	 
	 

	 	Name:

Title:

Date:
	 	Juan Bosco Nazar

Authorized Signature
	 	 	 	 	 	Name:

Title:

Date:
	 	Nicole Poole

Vice President	 	 

22

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