Document:

EXHIBIT 10.2

	
  

 
	

 

 

FORM OF

PURCHASE AGREEMENT

dated as of [          ],
20[    ]

between

USAA FEDERAL SAVINGS BANK

and

USAA ACCEPTANCE, LLC

	
  

 
	

 

 

TABLE OF CONTENTS

	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 Page

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE I

 	
 DEFINITIONS
 AND USAGE

 	
 1

 
	
  

 	
  

 	
  

 
	
 SECTION 1.1

 	
  

 	
 Definitions

 	
 1

 
	
 SECTION 1.2

 	
  

 	
 Other
 Interpretive Provisions

 	
 1

 
	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE II

 	
 PURCHASE

 	
  

 
	
  

 	
  

 	
  

 	
 2

 
	
 SECTION 2.1

 	
  

 	
 Agreement to
 Sell and Contribute on the Closing Date

 	
 2

 
	
 SECTION 2.2

 	
  

 	
 Consideration
 and Payment

 	
 2

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE III

 	
 REPRESENTATIONS,
 WARRANTIES AND COVENANTS

 	
 2

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 3.1

 	
  

 	
 Representations
 and Warranties of the Bank

 	
 2

 
	
 SECTION 3.2

 	
  

 	
 Representations
 and Warranties of the Bank as to each Receivable

 	
 4

 
	
 SECTION 3.3

 	
  

 	
 Repurchase
 upon Breach

 	
 4

 
	
 SECTION 3.4

 	
  

 	
 Protection
 of Title

 	
 4

 
	
 SECTION 3.5

 	
  

 	
 Other Liens
 or Interests

 	
 5

 
	
 SECTION 3.6

 	
  

 	
 Perfection
 Representations, Warranties and Covenants

 	
 5

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 ARTICLE IV

 	
 MISCELLANEOUS

 	
 6

 
	
  

 	
  

 	
  

 	
  

 	
  

 
	
 SECTION 4.1

 	
  

 	
 Transfers
 Intended as Sale; Security Interest

 	
 6

 
	
 SECTION 4.2

 	
  

 	
 Notices, Etc

 	
 7

 
	
 SECTION 4.3

 	
  

 	
 Choice of
 Law

 	
 7

 
	
 SECTION 4.4

 	
  

 	
 Headings

 	
 7

 
	
 SECTION 4.5

 	
  

 	
 Counterparts

 	
 7

 
	
 SECTION 4.6

 	
  

 	
 Amendment

 	
 7

 
	
 SECTION 4.7

 	
  

 	
 Waivers

 	
 8

 
	
 SECTION 4.8

 	
  

 	
 Entire
 Agreement

 	
 9

 
	
 SECTION 4.9

 	
  

 	
 Severability
 of Provisions

 	
 9

 
	
 SECTION 4.10

 	
  

 	
 Binding
 Effect

 	
 9

 
	
 SECTION 4.11

 	
  

 	
 Acknowledgment
 and Agreement

 	
 9

 
	
 SECTION 4.12

 	
  

 	
 Cumulative
 Remedies

 	
 9

 
	
 SECTION 4.13

 	
  

 	
 Nonpetition
 Covenant

 	
 9

 
	
 SECTION 4.14

 	
  

 	
 Submission
 to Jurisdiction; Waiver of Jury Trial

 	
 10

 
	
 SECTION 4.15

 	
  

 	
 [Limitation
 of Rights]

 	
 10

 

i

EXHIBITS

	
  

 	
  

 
	
 Exhibit A

 	
 Form of
 Assignment Pursuant to Purchase Agreement

 
	
 Schedule I

 	
 Representations
 and Warranties With Respect to the Receivables

 
	
 Schedule II

 	
 Perfection
 Representations, Warranties and Covenants

 

ii

          THIS PURCHASE AGREEMENT is made and entered
into as of [          ], 20[    ] (as amended from time to time, this “Agreement”) between USAA FEDERAL SAVINGS BANK, a federally
chartered savings association (the “Bank”), and USAA ACCEPTANCE, LLC, a Delaware limited
liability company (the “Purchaser”). 

WITNESSETH:

          WHEREAS,
the Purchaser desires to purchase from the Bank a portfolio of motor vehicle
receivables, including retail motor vehicle installment loans that are secured
by new and used automobiles and light-duty trucks; and

          WHEREAS, the
Bank is willing to sell such portfolio of motor vehicle receivables and related
property to the Purchaser on the terms and conditions set forth in this
Agreement.

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

ARTICLE I

DEFINITIONS AND USAGE

          SECTION
1.1 Definitions. Except as otherwise defined herein or as the context
may otherwise require, capitalized terms used but not otherwise defined herein
are defined in Appendix A to the Sale and Servicing Agreement dated
as of the date hereof (as from time to time amended, supplemented or otherwise
modified and in effect, the “Sale and Servicing Agreement”) among USAA
Auto Owner Trust 20[     ]-[   ], the Bank, as servicer, the Purchaser, as seller,
and [        ], as indenture trustee, which also contains rules as to usage that are
applicable herein.

          SECTION
1.2 Other Interpretive Provisions. For purposes of this Agreement,
unless the context otherwise requires: (a) accounting terms not otherwise
defined in this Agreement, and accounting terms partly defined in this
Agreement to the extent not defined, shall have the respective meanings given
to them under GAAP (provided, that, to the extent that the
definitions in this Agreement and GAAP conflict, the definitions in this
Agreement shall control); (b) terms defined in Article 9 of the UCC as in
effect in the relevant jurisdiction and not otherwise defined in this Agreement
are used as defined in that Article; (c) the words “hereof,” “herein” and
“hereunder” and words of similar import refer to this Agreement as a whole and
not to any particular provision of this Agreement; (d) references to any
Article, Section, Schedule, Appendix or Exhibit are references to Articles,
Sections, Schedules, Appendices and Exhibits in or to this Agreement and
references to any paragraph, subsection, clause or other subdivision within any
Section or definition refer to such paragraph, subsection, clause or other
subdivision of such Section or definition; (e) the term “including” and all
variations thereof means “including without limitation”; (f) except as
otherwise expressly provided herein, references to any law or regulation refer
to that law or regulation as amended from time to time and include any successor
law or regulation; (g) references to any Person include that Person’s
successors and assigns; and (h) unless the context otherwise requires, defined
terms shall be equally applicable to both the singular and plural forms. 

ARTICLE II

PURCHASE

          SECTION
2.1 Agreement to Sell and Contribute on the Closing Date. On the terms
and subject to the conditions set forth in this Agreement, the Bank agrees to
transfer, assign, set over, sell and otherwise convey to the Purchaser without
recourse (subject to the obligations herein) on the Closing Date all of its
right, title and interest in, to and under the Receivables, the Collections on
or after the Cut-Off Date, the Receivable Files and the Related Security
relating thereto, described in the assignment in the form of Exhibit A (the “Assignment”)
delivered on the Closing Date (the “Purchased Assets”) having a Net Pool
Balance as of the Cut-Off Date equal to
$[      ], which sale shall be effective as of
the Cut-Off Date. The sale, transfer, assignment and conveyance made hereunder
does not constitute and is not intended to result in an assumption by the
Purchaser of any obligation of the Originator to the Obligors or any other
Person in connection with the Receivables or the other assets and properties
conveyed hereunder or any agreement, document or instrument related thereto. 

          SECTION
2.2 Consideration and Payment. In consideration of the transfer of the
Purchased Assets conveyed to the Purchaser on the Closing Date, the Purchaser
shall pay to the Bank on such date an amount equal to the estimated fair market
value of the Purchased Assets, as determined by the Purchaser and the Bank
prior to sale, which amount shall be paid (a) in cash to the Bank and (b) by a
capital contribution by the Bank of an undivided interest in such Purchased
Assets that increases its equity interest in the Purchaser in an amount equal
to the estimated fair market value of the Purchased Assets over the amount of
cash paid by the Purchaser to the Bank.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

          SECTION
3.1 Representations and Warranties of the Bank. The Bank makes the
following representations and warranties as of the Closing Date on which the
Purchaser will be deemed to have relied in acquiring the Purchased Assets. The
representations and warranties will survive the conveyance of the Purchased
Assets to the Purchaser pursuant to this Agreement, the conveyance of the
Purchased Assets to the Issuer pursuant to the Sale and Servicing Agreement and
the Grant thereof by the Issuer to the Indenture Trustee pursuant to the
Indenture: 

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

          (b)
Authorization and No Contravention. The execution, delivery and performance
by the Bank of each Transaction Document to which it is a party (i) have been
duly authorized 

	
  

 	
  

 	
  

 
	
  

 	
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by all
necessary action on the part of the Bank and (ii) do not contravene or
constitute a default under (A) any applicable law, rule or regulation, (B) its
organizational documents or (C) any material agreement, contract, order or
other instrument to which it is a party or its property is subject (other than
violations which do not affect the legality, validity or enforceability of any
of such agreements and which, individually or in the aggregate, would not
materially and adversely affect the transactions contemplated by, or the Bank’s
ability to perform its obligations under, the Transaction Documents). 

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

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

          (e)
No Proceedings. There are no actions, suits or Proceedings pending or,
to the knowledge of the Bank, threatened against the Bank before or by any
Governmental Authority that (i) assert the invalidity or unenforceability of
this Agreement or any of the other Transaction Documents, (ii) seek to prevent
the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or any of the other Transaction Documents, (iii)
seek any determination or ruling that would materially and adversely affect the
performance by the Bank of its obligations under this Agreement or any of the
other Transaction Documents, or (iv) relate to the Bank that would materially
and adversely affect the federal or Applicable Tax State income, excise,
franchise or similar tax attributes of the Notes.

          (f)
Lien Filings. The Bank is not aware of any material judgment, ERISA or
tax lien filings against the Bank.

          (g)
Official Record. So long as the Notes remain outstanding, the Transaction
Documents to which the Bank is a party shall be treated as an official record
of the Bank within the meaning of Section 13(e) of the Federal Deposit
Insurance Act (12 U.S.C. Section 1823(e)).

          (h)
Sale Treatment. The transactions contemplated by the Transaction
Documents and the Sale Agreement, dated as of the date hereof, between the
Purchaser and United Services Automobile Association, a Texas reciprocal
interinsurance exchange, result in sale treatment with respect to the
Receivables for financial accounting purposes on the standalone balance sheet
of the Bank in accordance with generally accepted accounting principles. 

	
  

 	
  

 	
  

 
	
  

 	
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          (i)
Bank Approval. Each of the Transaction Documents to which the Bank is a
party has been approved by the board of directors, the executive committee or
the loan committee of the Bank and such approval is reflected in the minutes of
the board of directors, executive committee or loan committee.

          SECTION
3.2 Representations and Warranties of the Bank as to each Receivable.
The Bank hereby makes the representations and warranties set forth on Schedule
I as to the Receivables, sold, contributed, transferred, assigned, set
over, sold and otherwise conveyed to the Purchaser under this Agreement on
which such representations and warranties the Purchaser relies in acquiring the
Receivables. Such representations and warranties shall survive the sale of the
Receivables to the Issuer under the Sale and Servicing Agreement, and the Grant
of the Receivables by the Issuer to the Indenture Trustee pursuant to the
Indenture. Notwithstanding any statement to the contrary contained herein or in
any other Transaction Document, the Bank shall not be required to notify any
insurer with respect to any Insurance Policy obtained by an Obligor.

          SECTION
3.3 Repurchase upon Breach. Upon discovery by or notice to the Purchaser
or the Bank of a breach of any of the representations and warranties set forth
in Section 3.2 at the time such representations and warranties were made which
materially and adversely affects the interests of the Issuer or the
Noteholders, the party discovering such breach or receiving such notice shall
give prompt written notice thereof to the other party; provided, that delivery of the Servicer’s
Certificate, which identifies that Receivables are being or have been
repurchased, shall be deemed to constitute prompt notice by the Servicer (if
the Bank is the Servicer) of such breach; provided, further, that the
failure to give such notice shall not affect any obligation of the Bank
hereunder. If the Bank does not correct or cure such breach prior to the end of
the Collection Period which includes the 60th day (or, if the Bank elects, an
earlier date) after the date that the Bank became aware or was notified of such
breach, then the Bank shall purchase any Receivable materially and adversely
affected by such breach from the Purchaser on the Payment Date following the
end of such Collection Period. Any such breach or failure will be deemed to not
have a material and adverse effect if such breach or failure does not affect
the ability of the Purchaser (or its assignee) to collect, receive and retain
timely payment in full on such Receivable, including Liquidation Proceeds. Any
such purchase by the Bank shall be at a price equal to the Repurchase Price. In
consideration for such repurchase, the Bank shall make (or shall cause to be
made) a payment to the Purchaser equal to the Repurchase Price by depositing such
amount into the Collection Account prior to 11:00 a.m., New York City time on
such Payment Date. Upon payment of such Repurchase Price by the Bank, the
Purchaser shall release and shall execute and deliver such instruments of
release, transfer or assignment, in each case without recourse or
representation, as may be reasonably requested by the Bank to evidence such
release, transfer or assignment or more effectively vest in the Bank or its
designee any Receivable repurchased pursuant hereto. It is understood and
agreed that the obligation of the Bank to repurchase any Receivable as
described above shall constitute the sole remedy respecting such breach
available to the Purchaser. 

          SECTION
3.4 Protection of Title.

          (a)
The Bank shall authorize and file such financing statements and cause to be
authorized and filed such continuation and other statements, all in such manner
and in such 

	
  

 	
  

 	
  

 
	
  

 	
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places as may
be required by law fully to preserve, maintain and protect the interest of the
Purchaser under this Agreement in the Receivables as well as any subsequent
assignee of the Receivables (other than any Related Security with respect
thereto, to the extent that the interest of the Purchaser therein cannot be
perfected by the filing of a financing statement). The Bank shall deliver (or
cause to be delivered) to the Purchaser as well as any subsequent assignee of
the Receivables file-stamped copies of, or filing receipts for, any document
filed as provided above, as soon as available following such filing.

          (b)
The Bank will notify the Purchaser in writing within ten (10) days following
the occurrence of (i) any change in the Bank’s organizational structure as a
federally chartered savings association, (ii) any change in the Bank’s
“location” (within the meaning of Section 9-307 of the UCC of all applicable
jurisdictions) and (iii) any change in the Bank’s name and shall have taken all
action prior to making such change (or shall have made arrangements to take
such action substantially simultaneously with such change, if it is not
possible to take such action in advance) reasonably necessary or advisable in
the opinion of the Purchaser to amend all previously filed financing statements
or continuation statements described in paragraph (a) above.  

          (c)
The Bank shall maintain (or shall cause the Servicer to maintain) its computer
systems so that, from time to time after the conveyance under this Agreement of
the Receivables, the master computer records (including any backup archives, it
being understood that any such backup archives may not reflect such interest
until thirty-five (35) days after the applicable changes are made to such
master computer records) that refer to a Receivable shall indicate clearly the
interest of the Purchaser (or any subsequent assignee of the Purchaser) in such
Receivable and that such Receivable is owned by such Person. Indication of such
Person’s interest in a Receivable shall not be deleted from or modified on such
computer systems until, and only until, the related Receivable shall have been
paid in full or repurchased.

          (d)
If at any time the Bank shall propose to sell, grant a security interest in or
otherwise transfer any interest in motor vehicle receivables to any prospective
purchaser, lender or other transferee, the Bank shall give to such prospective
purchaser, lender or other transferee computer tapes, records or printouts
(including any restored from backup archives) that, if they shall refer in any
manner whatsoever to any Receivable, shall indicate clearly that such
Receivable has been sold and is owned by the Purchaser (or any subsequent
assignee of the Purchaser).

          SECTION
3.5 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction
Documents, the Bank shall not sell, pledge, assign or transfer the Receivables
or other property transferred to the Purchaser to any other Person, or grant,
create, incur, assume or suffer to exist any Lien (other than Permitted Liens)
on any interest therein, and the Bank shall defend the right, title and
interest of the Purchaser in, to and under such Receivables or other property
transferred to the Purchaser against all claims of third parties claiming
through or under the Bank.

          SECTION
3.6 Perfection Representations, Warranties and Covenants. The Bank
hereby makes the perfection representations, warranties and covenants set forth
on Schedule II

	
  

 	
  

 	
  

 
	
  

 	
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 Agreement (USAA 20[  ]-[  ])

 

hereto to the
Purchaser and the Purchaser shall be deemed to have relied on such
representations, warranties and covenants in acquiring the Purchased Assets.

ARTICLE IV

MISCELLANEOUS

          SECTION
4.1 Transfers Intended as Sale; Security Interest.

          (a)
Each of the parties hereto expressly intends and agrees that the transfers
contemplated and effected under this Agreement are complete and absolute sales
and contributions rather than pledges or assignments of only a security
interest and shall be given effect as such for all purposes. It is further the
intention of the parties hereto that the Receivables and related Purchased
Assets shall not be treated as property of the Bank by the FDIC or other governmental
authority acting as conservator or receiver of the Bank in a conservatorship,
receivership, insolvency or other similar proceeding in respect of the Bank
under the Federal Deposit Insurance Act, 12 U.S.C. Section 1811 et seq. or
other applicable law. The sales and transfers by the Bank of the Receivables
and related Purchased Assets hereunder are and shall be without recourse to, or
representation or warranty (express or implied) by, the Bank, except as
otherwise specifically provided herein. The limited rights of recourse
specified herein against the Bank are intended to provide a remedy for breach
of representations and warranties relating to the condition of the property
sold, rather than to the collectibility of the Receivables.

          (b)
Notwithstanding the foregoing, in the event that the Receivables and other
Purchased Assets are held to be property of the Bank, or if for any reason this
Agreement is held or deemed to create indebtedness or a security interest in
the Receivables and other Purchased Assets, then it is intended that:

	
  

 	
  

 
	
  

 	
           (i)
 This Agreement shall be deemed to be a security agreement within the meaning
 of Articles 8 and 9 of the New York UCC and the UCC of any other applicable
 jurisdiction;

 
	
  

 	
  

 
	
  

 	
           (ii)
The conveyance provided for in Section 2.1 shall be deemed to be a grant by
the Bank of, and the Bank hereby grants to the Purchaser, a security interest
in all of its right (including the power to convey title thereto), title and
interest, whether now owned or hereafter acquired, in and to the Receivables
and other Purchased Assets, to secure such indebtedness and the performance
of the obligations of the Bank hereunder; 

 
	
  

 	
  

 
	
  

 	
           (iii)
 The possession by the Purchaser or its agent of the Receivable Files and any
 other property as constitute instruments, money, negotiable documents or
 chattel paper shall be deemed to be “possession by the secured party” or
 possession by the purchaser or a Person designated by such purchaser, for
 purposes of perfecting the security interest pursuant to the New York UCC and
 the UCC of any other applicable jurisdiction; and

 
	
  

 	
  

 
	
  

 	
           (iv)
 Notifications to Persons holding such property, and acknowledgments, receipts
 or confirmations from Persons holding such property, shall be deemed to be
 notifications to, or acknowledgments, receipts or confirmations from, bailees
 or agents 

 

	
  

 	
  

 	
  

 
	
  

 	
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 (as
 applicable) of the Purchaser for the purpose of perfecting such security
 interest under applicable law.

 

          SECTION
4.2 Notices, Etc. All demands, notices and communications hereunder
shall be in writing and shall be delivered or mailed by registered or certified
first-class United States mail, postage prepaid, hand delivery, prepaid courier
service, by facsimile or, if so provided on Schedule II to the Sale and
Servicing Agreement, by electronic transmission, and addressed in each case as
specified on Schedule II to the Sale and Servicing Agreement or at such
other address as shall be designated by any of the specified addressees in a
written notice to the other parties hereto. Delivery will be deemed to have
been given and made: (i) upon delivery or, in the case of a letter mailed by
registered or certified first-class United States mail, postage prepaid, three
days after deposit in the mail, (ii) in the case of a facsimile, when receipt
is confirmed by telephone, reply email or reply facsimile from the recipient,
(iii) in the case of electronic transmission, when receipt is confirmed by telephone
or reply email from the recipient and (iv) in the case of an electronic posting
to a password-protected website to which the recipient has been provided
access, upon delivery (without the requirement of confirmation of receipt) and
notice (including email) to such recipient stating that such electronic posting
has occurred. 

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

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

          SECTION 4.5 Counterparts.
This Agreement may be executed in any number of counterparts, each of which so
executed shall be deemed to be an original, but all of such counterparts shall
together constitute but one and the same instrument.

          SECTION
4.6 Amendment.

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

	
  

 	
  

 
	
  

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

 

	
  

 	
  

 	
  

 
	
  

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

 

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

          (c)
Prior to the execution of any amendment pursuant to this Section 4.6,
the Bank shall provide written notification of the substance of such amendment
to each Rating Agency; and promptly after the execution of any such amendment
or consent, the Bank shall furnish a copy of such amendment or consent to each
Rating Agency and the Indenture Trustee; provided, that no amendment pursuant to
this Section 4.6 shall be effective which [(i)] affects the rights,
protections or duties of the Indenture Trustee or the Owner Trustee without the
prior written consent of such Person (which consent shall not be unreasonably
withheld or delayed) [or (ii) materially and adversely affects the rights or
obligations of the Swap Counterparty unless the Swap Counterparty shall have
consented in writing to such amendment (and such consent shall be deemed to
have been given if the Swap Counterparty does not object in writing within ten
(10) Business Days after receipt of a written request for such consent)].

          (d)
Prior to the execution of any amendment pursuant to this Section 4.6,
the Owner Trustee and the Indenture Trustee shall be entitled to receive and
conclusively rely upon an Opinion of Counsel stating that the execution of such
amendment is authorized or permitted by this Agreement and that all conditions
precedent to the execution and delivery of such amendment have been satisfied.
The Owner Trustee and the Indenture Trustee may, but shall not be obligated to,
enter into or execute on behalf of the Issuer any such amendment which
adversely affects the Owner Trustee’s or the Indenture Trustee’s, as applicable,
own rights, privileges, indemnities, duties or obligations under this
Agreement. 

          SECTION
4.7 Waivers. No failure or delay on the part of the Purchaser, the
Servicer, the Bank, the Issuer or the Indenture Trustee in exercising any power
or right hereunder (to the extent such Person has any power or right hereunder)
shall operate as a waiver thereof, nor shall any single or partial exercise of
any such power or right preclude any other or further exercise thereof or the
exercise of any other power or right. No notice to or demand on the Purchaser
or the Bank in any case shall entitle it to any notice or demand in similar or
other circumstances. No waiver or approval by either party under this Agreement
shall, except as may otherwise be stated in such waiver or approval, be
applicable to subsequent transactions. No waiver or approval under this
Agreement shall require any similar or dissimilar waiver or approval thereafter
to be granted hereunder.

	
  

 	
  

 	
  

 
	
  

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

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

          SECTION
4.10 Binding Effect. This Agreement shall be binding upon and inure to
the benefit of the parties hereto and their respective successors and permitted
assigns. This Agreement shall create and constitute the continuing obligations
of the parties hereto in accordance with its terms, and shall remain in full
force and effect until such time as the parties hereto shall agree.

          SECTION
4.11 Acknowledgment and Agreement. By execution below, the Bank
expressly acknowledges and consents to the sale of the Purchased Assets and the
assignment of all rights and obligations of the Bank related thereto by the
Purchaser to the Issuer pursuant to the Sale and Servicing Agreement and the
Grant of a security interest in the Receivables and the other Purchased Assets
by the Issuer to the Indenture Trustee pursuant to the Indenture for the
benefit of the Noteholders [and the Swap Counterparty]. In addition, the Bank
hereby acknowledges and agrees that for so long as the Notes are outstanding,
the Indenture Trustee will have the right to exercise all powers, privileges
and claims of the Purchaser under this Agreement pursuant to the Grant of such
security interest in the event that the Purchaser shall fail to exercise the
same.

          SECTION
4.12 Cumulative Remedies. The remedies herein provided are cumulative
and not exclusive of any remedies provided by law.

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

	
  

 	
  

 	
  

 
	
  

 	
 -9- 

 	
 Purchase
 Agreement (USAA 20[  ]-[  ])

 

statute now or
hereafter in effect in any jurisdiction; provided, that the foregoing shall in no
way limit the rights of the parties hereto to pursue any other creditor rights
or remedies that such Persons may have against the Issuer under applicable law.
This Section shall survive the termination of this Agreement.

          SECTION
4.14 Submission to Jurisdiction; Waiver of Jury Trial. Each of the
parties hereto hereby irrevocably and unconditionally:

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

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

          (c) agrees
that service of process in any such action or Proceeding may be effected by
mailing a copy thereof by registered or certified mail (or any substantially
similar form of mail), postage prepaid, to such Person at its address
determined in accordance with Section 4.2; 

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

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

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

[Remainder of Page Intentionally Left Blank]

	
  

 	
  

 	
  

 
	
  

 	
 -10- 

 	
 Purchase
 Agreement (USAA 20[  ]-[  ])

 

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

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 USAA FEDERAL SAVINGS BANK

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: 

 
	
  

 	
 Title: 

 
	
  

 	
  

 
	
  

 	
 USAA ACCEPTANCE, LLC

 
	
  

 	
  

 
	
  

 	
 By: 

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: 

 
	
  

 	
 Title: 

 

	
  

 	
  

 	
  

 
	
  

 	
 S-1 

 	
 Purchase
 Agreement (USAA 20[  ]-[  ])

 

EXHIBIT A

FORM OF
ASSIGNMENT PURSUANT TO PURCHASE AGREEMENT

 [       ],
20[  ]

          For
value received, in accordance with the Purchase Agreement dated as of
[       ], 20[  ] (the
“Agreement”), between USAA Federal Savings Bank, a federally chartered savings
association (the “Bank”), and USAA Acceptance, LLC, a Delaware limited
liability company (the “Purchaser”), on the terms and subject to the
conditions set forth in the Agreement, the Bank does hereby transfer, assign,
set over, sell and otherwise convey to the Purchaser without recourse (subject
to the obligations in the Agreement) on the Closing Date, all of its right,
title and interest in, to and under the Receivables set forth on the schedule
of Receivables delivered by the Bank to the Purchaser on the date hereof, the
Collections on or after the Cut-Off Date, the Receivable Files and the Related
Security relating thereto, which sale shall be effective as of the Cut-Off
Date. 

          The
foregoing sale does not constitute and is not intended to result in any
assumption by the Purchaser of any obligation of the undersigned or the
Originator to the Obligors or any other Person in connection with the
Receivables, or the other assets and properties conveyed hereunder or any
agreement, document or instrument related thereto.

          This
assignment is made pursuant to and upon the representations, warranties and
agreements on the part of the undersigned contained in the Agreement and is
governed by the Agreement.

          Capitalized
terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement or if not defined in the Agreement, in Appendix A to the
Sale and Servicing Agreement, dated as of [       ], 20[  ] among USAA Auto Owner
Trust 20[   ]-[  ], the Bank, as servicer, the Purchaser, as seller, and [       ], as
indenture trustee.

[Remainder of page intentionally left blank]

	
  

 	
  

 	
  

 
	
  

 	
 A-1 

 	
 Purchase
 Agreement (USAA 20[  ]-[  ])

 

          IN
WITNESS HEREOF, the undersigned has caused this assignment to be duly executed
as of the date first above written.

	
  

 	
  

 	
  

 	
  

 
	
  

 	
 USAA FEDERAL SAVINGS BANK

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 By: 

 	
  

 
	
  

 	
  

 	

 

 	
  

 
	
  

 	
 Name: 

 
	
  

 	
 Title: 

 

	
  

 	
  

 	
  

 
	
  

 	
 A-2 

 	
 Purchase
 Agreement (USAA 20[  ]-[  ])

 

SCHEDULE I

REPRESENTATIONS AND WARRANTIES WITH RESPECT
TO THE RECEIVABLES

	
  

 	
  

 	
  

 
	
 (a)

 	
 Characteristics of Receivables.
 Each Receivable:

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 has been
 fully and properly executed or electronically authenticated (as defined in
 the UCC) by the Obligor thereto;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 has been
 originated or acquired directly by the Originator in accordance with its
 customary practices;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 as of the
 Closing Date is secured by a first priority validly perfected security
 interest in the Financed Vehicle in favor of the Originator, as secured
 party, or all necessary actions have been commenced that would result in a
 first priority security interest in the Financed Vehicle in favor of the
 Originator, as secured party, which security interest, in either case, is
 assignable and has been so assigned (x) by the Bank to the Purchaser and (y)
 by the Purchaser to the Issuer; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 contains
 customary and enforceable provisions such that the rights and remedies of the
 holder thereof are adequate for realization against the collateral of the
 benefits of the security;

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 provided, at
 origination, for level periodic payments which fully amortize the initial
 Outstanding Principal Balance over the original term; provided, that the amount
 of the first or last payment may be different but in no event more than three
 times the level monthly payment;

 
	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 provides for
 interest at the Contract Rate specified in the Schedule of Receivables; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 was originated
 in the United States.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Individual Characteristics.
 Each Receivable has the following individual characteristics as of the
 Cut-Off Date:

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 each
 Receivable is secured by a new or used automobile or light-duty truck;

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 each Receivable
 has a Contract Rate of no less than [  ]% and not more than
 [  ]%;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 each
 Receivable had an original term to maturity of not more than [  ]
 months and not less than [  ] months and each Receivable has a
 remaining term to maturity, as of the Cut-Off Date, of [  ]
 month[s] or more;

 
	
  

 	
  

 	
  

 
	
  

 	
 (iv)

 	
 each
 Receivable has an Outstanding Principal Balance as of the Cut-Off Date of
 greater than or equal to $[  ];

 
	
  

 	
  

 	
  

 
	
  

 	
 (v)

 	
 no
 Receivable has a scheduled maturity date later than
 [        ];

 

	
  

 	
  

 	
  

 
	
  

 	
 Schedule I-1

 	
 Schedule I to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
  

 	
 (vi)

 	
 no
 Receivable was more than 30 days past due as of the Cut-Off Date; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (vii)

 	
 as of the
 Cut-Off Date, no Receivable was noted in the records of the Servicer as being
 the subject of any pending bankruptcy or insolvency Proceeding;

 
	
  

 	
  

 	
  

 
	
  

 	
 (viii)

 	
 no
 Receivable is subject to a force-placed Insurance Policy on the related
 Financed Vehicle; 

 
	
  

 	
  

 	
  

 
	
  

 	
 (ix)

 	
 each
 Receivable is a Simple Interest Receivable; and

 
	
  

 	
  

 	
  

 
	
  

 	
 (x)

 	
 each of the
 Receivables were selected using selection procedures that were not known or
 intended by the Bank to be adverse to the Purchaser. 

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 Schedule of Receivables.
 The information with respect to each Receivable transferred on the Closing
 Date set forth in the Schedule of Receivables was true and correct in all
 material respects as of the Cut-Off Date.

 
	
  

 	
  

 
	
 (d)

 	
 Compliance with Law. Each
 Receivable complied at the time it was originated or made, in all material
 respects with all requirements of applicable federal, state and local laws,
 and regulations thereunder, including, to the extent applicable, usury laws,
 the Federal Truth in Lending Act, the Equal Credit Opportunity Act, the Fair
 Credit Reporting Act, the Federal Trade Commission Act, the Fair Debt
 Collection Practices Act, the Fair Credit Billing Act, the Magnuson-Moss
 Warranty Act, Consumer Financial Protection Bureau’s Regulations B and Z, the
 Servicemembers Civil Relief Act of 2003, as amended, state adaptations of the
 National Consumer Act and of the Uniform Consumer Credit Code and any other
 consumer credit, equal opportunity and disclosure laws applicable to that
 Receivable.

 
	
  

 	
  

 
	
 (e)

 	
 Binding Obligation. Each
 Receivable constitutes the legal, valid and binding payment obligation in
 writing of the Obligor, enforceable in all material respects by the holder
 thereof in accordance with its terms, subject, as to enforcement, to
 applicable bankruptcy, insolvency, reorganization, liquidation or other
 similar laws and equitable principles relating to or affecting the
 enforcement of creditors’ rights generally.

 
	
  

 	
  

 
	
 (f)

 	
 Receivable in Force.
 Each Receivable has not been satisfied, subordinated or rescinded nor has the
 related Financed Vehicle been released from the lien granted by the
 Receivable in whole or in part.

 
	
  

 	
  

 
	
 (g)

 	
 No Waiver. As of the Cut-Off Date, no
 provision of a Receivable has been waived.

 
	
  

 	
  

 
	
 (h)

 	
 No Default. Except
 for payment delinquencies continuing for a period of not more than 30 days as
 of the Cut-Off Date, the records of the Servicer did not disclose that any
 default, breach, violation or event permitting acceleration under the terms
 of the Receivable existed as of the Cut-Off Date or that any continuing
 condition that with notice or lapse of time, or both, would constitute a
 default, breach, violation or event permitting acceleration under the terms
 of the Receivable had arisen as of the Cut-Off Date.

 

	
  

 	
  

 	
  

 
	
  

 	
 Schedule I-2

 	
 Schedule I to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
 (i)

 	
 Insurance. Each
 Receivable requires the Obligor thereunder to insure the Financed Vehicle
 under a physical damage insurance policy.

 
	
  

 	
  

 
	
 (j)

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

 
	
  

 	
  

 
	
 (k)

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

 
	
  

 	
  

 
	
 (l)

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

 
	
  

 	
  

 
	
 (m)

 	
 Filings. All
 filings (including, without limitation, UCC filings) necessary in any
 jurisdiction to give the Issuer a first priority, validly perfected ownership
 interest in the Receivables (other than the Related Security with respect
 thereto), and to give the Indenture Trustee a first priority perfected
 security interest therein, will be made within ten days of the Closing Date.

 
	
  

 	
  

 
	
 (n)

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

 
	
  

 	
  

 
	
 (o)

 	
 Characterization of Receivables. Each
 Receivable constitutes either “tangible chattel paper,” “electronic chattel
 paper,” an “account,” a “promissory note” or a “payment intangible,” each as
 defined in the UCC.

 

	
  

 	
  

 	
  

 
	
  

 	
 Schedule I-3

 	
 Schedule I to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

	
  

 	
  

 	
  

 
	
 (p)

 	
 One Original. With
 respect to any Receivable constituting electronic chattel paper, there is
 only one “authoritative copy” (as such term is used in Section 9-105 of the
 UCC) of the Receivable or with respect to any Receivable constituting
 tangible chattel paper for which an original executed copy exists, there is
 no more than one original executed copy of such Receivable and none of the
 instruments, tangible chattel paper or electronic chattel paper that
 constitute or evidence the Receivables has any marks or notations indicating
 that it has been pledged, assigned or otherwise conveyed to any Person other
 than to a party to the Transaction Documents.

 
	
  

 	
  

 
	
 (q)

 	
 No Defenses. The Bank has no knowledge
 either of any facts which would give rise to any right of rescission,
 set-off, counterclaim or defense, or of the same being asserted or
 threatened, with respect to any Receivable.

 
	
  

 	
  

 
	
 (r)

 	
 No Repossession. As of the Cut-Off Date, no
 Financed Vehicle shall have been repossessed.

 

	
  

 	
  

 	
  

 
	
  

 	
 Schedule I-4

 	
 Schedule I to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

SCHEDULE II

          PERFECTION
REPRESENTATIONS, WARRANTIES AND COVENANTS

          In addition to
the representations, warranties and covenants contained in the Agreement, the
Bank hereby represents, warrants and covenants to the Purchaser as follows on
the Closing Date:

General

          1.
This Agreement creates a valid and continuing security interest (as defined in
the applicable UCC) in the Receivables and the other Purchased Assets in favor
of the Purchaser, which security interest is prior to all other Liens, and is
enforceable as such against creditors of and purchasers from the Bank. 

          2.
The Receivables constitute “chattel paper” (including “electronic chattel
paper” and “tangible chattel paper”), “accounts,” “instruments” or “general
intangibles,” within the meaning of the applicable UCC. 

          3.
Each Receivable is secured by a first priority validly perfected security
interest in the related Financed Vehicle in favor of the Originator, as secured
party, or all necessary actions with respect to such Receivable have been taken
or will be taken to perfect a first priority security interest in the related
Financed Vehicle in favor of the Originator, as secured party.

Creation

          4.
Immediately prior to the sale, transfer, assignment and conveyance of a
Receivable by the Bank to the Purchaser, the Bank owned and had good and
marketable title to such Receivable free and clear of any Lien and immediately
after the sale, transfer, assignment and conveyance of such Receivable to the
Purchaser, the Purchaser will have good and marketable title to such Receivable
free and clear of any Lien. 

          5.
The related Originator has received all consents and approvals to the sale of
the Receivables hereunder to the Purchaser required by the terms of the
Receivables that constitute instruments.

Perfection

          6.
The Bank has caused or will have caused, within ten days after the effective
date of this Agreement, the filing of all appropriate financing statements in
the proper filing office in the appropriate jurisdictions under applicable law
in order to perfect the security interest in the Receivables granted to the
Purchaser hereunder; and the Servicer, in its capacity as custodian, has in its
possession the original copies of such instruments or tangible chattel paper
that constitute or evidence the Receivables, and all financing statements
referred to in this paragraph contain a statement that: “A purchase of or
security interest in any collateral described in this financing statement will
violate the rights of the Secured Party/Purchaser.”

	
  

 	
  

 	
  

 
	
  

 	
 Schedule 

 II-1

 	
 Schedule II to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

          7.
With respect to Receivables that constitute instruments or tangible chattel
paper, either: 

	
  

 	
  

 	
  

 
	
  

 	
 a.

 	
 All original
 executed copies of each such instrument or tangible chattel paper have been
 delivered to the Indenture Trustee; or

 
	
  

 	
  

 	
  

 
	
  

 	
 b.

 	
 Such
 instruments or tangible chattel paper are in the possession of the Servicer
 and the Indenture Trustee has received a written acknowledgment from the
 Servicer that the Servicer (in its capacity as custodian) is holding such
 instruments or tangible chattel paper solely on behalf and for the benefit of
 the Indenture Trustee; or 

 
	
  

 	
  

 	
  

 
	
  

 	
 c.

 	
 The Servicer
 received possession of such instruments or tangible chattel paper after the
 Indenture Trustee received a written acknowledgment from the Servicer that
 the Servicer is acting solely as agent of the Indenture Trustee.

 

Priority

          8.
The Bank has not authorized the filing of, and is not aware of, any financing
statements against the Bank that include a description of collateral covering
the Receivables other than any financing statement (i) relating to the
conveyance of the Receivables by the Bank to the Purchaser under the Purchase
Agreement, (ii) relating to the conveyance of the Receivables by the Seller to
the Issuer under the Sale and Servicing Agreement, (iii) relating to the
security interest granted to the Indenture Trustee under the Indenture or (iv) that
has been terminated.

          9.
The Bank is not aware of any material judgment, ERISA or tax lien filings
against the Bank. 

          10.
Neither the Bank nor a custodian or vaulting agent thereof holding any
Receivable that is electronic chattel paper has communicated an “authoritative
copy” (as such term is used in Section 9-105 of the UCC) of any loan agreement
that constitutes or evidences such Receivable to any Person other than the
Servicer.

          11.
None of the instruments, tangible chattel paper or electronic chattel paper
that constitute or evidence the Receivables has any marks or notations
indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Purchaser, the Issuer or the Indenture Trustee.

Survival of Perfection Representations

          12.
Notwithstanding any other provision of the Purchase Agreement or any other
Transaction Document, the perfection representations, warranties and covenants
contained in this Schedule II shall be continuing, and remain in
full force and effect until such time as all obligations under the Transaction
Documents and the Notes have been finally and fully paid and performed.

	
  

 	
  

 	
  

 
	
  

 	
 Schedule 

 II-2

 	
 Schedule II to the Purchase Agreement

 (USAA 20[  ]-[  ])

 

No Waiver

          13.
The Bank shall provide the Rating Agencies with prompt written notice of any
material breach of the perfection representations, warranties and covenants
contained in this Schedule II, and shall not, without satisfying
the Rating Agency Condition, waive a breach of any of such perfection
representations, warranties or covenants.

	
  

 	
  

 	
  

 
	
  

 	
 Schedule 

 II-3

 	
 Schedule II to the Purchase Agreement

 (USAA 20[  ]-[  ])Exhibit 10.3 

	
  

 	
  

 	
  

 
	
  (Multicurrency—Cross Border) 

 	
  

 	
  

 
	
  

 	
  

 	
  

 
	
 ISDA®

 
	
 International Swap Dealers Association, Inc. 

 
	
  

 
	
 MASTER AGREEMENT

 
	
  

 
	
 dated as of
 [      
          
              ]

 
	
  

 	
  

 	
  

 
	
 [_____________________]          and          USAA
 Auto Owner Trust 20[ ]-[ ]

 

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 

 

Copyright © 1992 by International Swap Dealers Association, Inc

	
  

 	
  

 
	
  

 	
 pursuant to this Agreement, in freely transferable funds and in the
 manner customary for 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: 

 

2

	
  

 	
  

 	
  

 
	
  

 	
  

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

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (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)(i)(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

3

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 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 such

 

4

	
  

 	
  

 
	
 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. 

5

	
  

 	
  

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

 

6

	
  

 	
  

 
	
  

 	
 (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); 

 
	
  

 	
  

 
	
  

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

 

7

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (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 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

8

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 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 

 

9

	
  

 	
  

 
	
  

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

 

10

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). 

 
	
  

 	
  

 	
  

 
	
 (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,

 

11

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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. 

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (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 

 

12

	
  

 	
  

 	
  

 
	
  

 	
  

 	
 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)(i)(3), if Market Quotation applies, or Section
 6(e)(i)(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. 

	
  

 	
  

 
	
  

 	
 (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 

 

13

	
  

 	
  

 
	
  

 	
 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. 

(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

14

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. 

(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. 

 

15

	
  

 	
  

 
	
  

 	
 (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 be entered into as soon as practicable and
 may be 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 

 

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 

 

 16

(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 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.

 

17

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 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;

18

(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 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).

19

 “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 11. 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
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

20

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 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.

21

 “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 meaning 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.

 “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).

22

 “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 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.

23

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.

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
 USAA AUTO OWNER TRUST 20[ ]-[ ]

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 [____________________________]

 	
  

 	
 By: [___________________], not in its individual capacity
 but solely as owner trustee

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	

 

 	
  

 	

 

 
	
 (Name of Party)

 	
  

 	
 (Name of Party)

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 By:

 	
  

 	
  

 	
 By:

 	
  

 
	
  

 	

 

 	
  

 	
  

 	
  

 	

 

 
	
 Name:

 	
  

 	
 Name:

 
	
  

 	

 

 	
  

 	
  

 	
  

 	

 

 
	
 Title:

 	
  

 	
 Title:

 
	
  

 	
  

 	

 

 	
  

 	
  

 	
  

 	

 

 
	
 Date:

 	
  

 	
 Date:

 
	
  

 	
  

 	

 

 	
  

 	
  

 	
  

 	

 

 

24

SCHEDULE

TO THE

MASTER AGREEMENT

dated as of [   ]

between

[SWAP COUNTERPARTY]

(“Party A”)

and 

[USSA FEDERAL SAVINGS BANK] 

(“Party B”)

Part 1. Termination Provisions

	
  

 	
  

 
	
 (a)

 	
  “Specified
 Entity” means in relation to Party A for the purpose of:-

 

	
  

 	
  

 
	
  

 	
 Section 5(a)(v), None Specified

 
	
  

 	
 Section 5(a)(vi), None Specified

 
	
  

 	
 Section 5(a)(vii), None Specified

 
	
  

 	
 Section 5(b)(iv), None Specified

 

	
  

 	
  

 
	
  

 	
 and in relation to Party B for the purpose of:-

 

	
  

 	
  

 
	
  

 	
 Section 5(a)(v), None Specified

 
	
  

 	
 Section 5(a)(vi), None Specified

 
	
  

 	
 Section 5(a)(vii), None Specified

 
	
  

 	
 Section 5(b)(iv), None Specified

 

	
  

 	
  

 
	
 (b)

 	
  “Specified
 Transaction” will have the meaning specified in
 Section 14 of this Agreement.

 
	
  

 	
  

 
	
 (c)

 	
  “Cross
 Default” applies to Party A and Party B. Section 5(a)(vi)
 is hereby amended by deleting in the seventh line thereof the words “, or
 becoming capable at such time of being declared,”.

 
	
  

 	
  

 
	
 (d)

 	
  “Specified
 Indebtedness” has the meaning specified in Section 14. 

 
	
  

 	
  

 
	
 (e)

 	
  “Threshold
 Amount” means, with respect to a party, the greater of (i)
 3% of shareholder equity and (ii) U.S.[   ] (or the equivalent in another
 currency, currency unit or combination thereof).

 
	
  

 	
  

 
	
 (f)

 	
  “Credit
 Event Upon Merger” applies to Party A and Party B.

 
	
  

 	
  

 
	
 (g)

 	
 The “Automatic Early Termination” provisions
 of Section 6(a) will not apply to Party A and will not apply to Party B.

 
	
  

 	
  

 
	
 (h)

 	
 Payments
 on Early Termination. “Market Quotation” and “Second
 Method” will apply for the purpose of Section 6(e) of this
 Agreement.

 
	
  

 	
  

 
	
 (i)

 	
  “Termination
 Currency” means United States Dollars.

 
	
  

 	
  

 
	
 (j)

 	
 Additional
 Termination Event will not apply.

 

19

Part 2. Tax Representations

	
  

 	
  

 	
  

 
	
 (a)

 	
 Party
 A and Party B Payer Tax Representations. For the purpose of
 Section 3(e), each of Party A and Party B makes the following
 representation:-

 
	
  

 	
  

 	
  

 
	
  

 	
 It is not required by any applicable law, as
 modified by the practice of any relevant governmental revenue authority, of
 any Relevant Jurisdiction to make any deduction or withholding for or on
 account of any Tax from any payment (other than interest under Section 2(e),
 6(d)(ii) or 6(e)) to be made by it to the other party under this Agreement.
 In making this representation, it may rely on (i) the accuracy of any
 representation made by the other party pursuant to Section 3(f); (ii) the
 satisfaction of the agreement of the other party contained in Section 4(a)(i)
 or 4(a)(iii) and the accuracy and effectiveness of any document provided by
 the other party pursuant to Section 4(a)(i) or 4(a)(iii); and (iii) the
 satisfaction of the agreement of the other party contained in Section 4(d), provided
 that it shall not be a breach of this representation where reliance is placed
 on clause (ii) and the other party does not deliver a form or document under
 Section 4(a)(iii) by reason of material prejudice to its legal or commercial
 position.

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Payee
 Tax Representations 

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 For the purpose of Section 3(f), Party A makes the
 following representation:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 It is a [   ] duly organized and incorporated under
 the laws of the [   ] and is an exempt recipient for United States tax
 purposes.

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 For the purpose of Section 3(f), Party B makes the
 following representation:

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 It is a [   ] duly organized and incorporated under
 the laws of the [   ] and is an exempt recipient for United States tax
 purposes.

 

Part 3. Agreement to Deliver Documents

For the purpose of Sections 4(a)(i) and (ii), each
party agrees to deliver the following documents, as applicable:-

	
  

 	
  

 
	
 (a)

 	
 Tax forms, documents or certificates to be delivered
 are:- 

 

	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party
 required

 to deliver 

 document

 	
  

 	
 Form/Document/Certificate

 	
  

 	
 Date
 by which to be delivered

 
	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Party A and Party B

 	
  

 	
 An executed United States Internal Revenue Service
 Form [W-9] (or any successor thereto).

 	
  

 	
 (i) Upon the execution of this Agreement and
 (ii) promptly upon any Form [W-9] (or any successor thereto) previously
 provided by either party becoming obsolete or incorrect.

 

20

	
  

 	
  

 
	
 (b)

 	
 Other documents to be delivered are:-

 

	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party
 required 

 to deliver 

 document 

 	
  

 	
 Form/Document/Certificate

 	
  

 	
 Date by which to be delivered

 	
  

 	
 Covered by

 Section 3(d) 

 Representation

 
	

 

 	
  

 	

 

 	
  

 	

 

 	
  

 	

 

 
	
 Party A and 

 Party B

 	
  

 	
 Either (1) a signature booklet containing
 secretary’s certificate and resolutions (“authorizing resolutions”)
 authorizing the party to enter into derivatives transactions of the type
 contemplated by the parties or (2) a secretary’s certificate, authorizing
 resolutions and incumbency certificate, in either case, for such party and
 any Credit Support Provider of such party reasonably satisfactory in form and
 substance to the other party.

 	
  

 	
 Upon execution of this Agreement and as deemed
 necessary for any further documentation.

 	
  

 	
 Yes

 
	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 	
  

 
	
 Party A and 

 Party B 

 	
  

 	
 A copy of the annual report of such party containing
 audited consolidated financial statements for each such fiscal year,
 certified by independent certified public accountants and prepared in
 accordance with generally accepted accounting principles in the country in
 which such party is organized.

 	
  

 	
 Upon reasonable request.

 	
  

 	
 Yes 

 

Part 4. Miscellaneous

	
  

 	
  

 	
  

 
	
 (a)

 	
 Addresses
 for Notices. For the purpose of Section 12(a):-

 
	
  

 	
  

 	
  

 
	
  

 	
 (i)

 	
 Address for notices or communications to Party A:-

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 [   ]

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Address for notices or communications to Party B:-

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 10750 McDermott Freeway

 
	
  

 	
  

 	
 San Antonio, Texas 78288

 
	
  

 	
  

 	
  

 
	
 (b)

 	
 Process
 Agent. For the purpose of Section 13(c) of this Agreement,
 Party A irrevocably appoints as its Process Agent: [None]

 
	
  

 	
  

 	
  

 
	
  

 	
 For the purpose of Section 13(c) of this Agreement,
 Party B irrevocably appoints as its Process Agent: None.

 
	
  

 	
  

 	
  

 
	
 (c)

 	
 Offices.
 The provisions of Section 10(a) will apply to Party A and to Party B.

 
	
  

 	
  

 	
  

 
	
 (d)

 	
 Multibranch
 Party. For the purpose of Section 10(c):-

 
	
  

 	
  

 	
  

 
	
  

 	
  

 	
 Party A is [not] a Multibranch Party. 

 

21

	
  

 	
  

 	
  

 
	
  

 	
 Party B is not a Multibranch Party.

 
	
  

 	
  

 	
  

 
	
 (e)

 	
  “Calculation
 Agent” means Party A, unless an Event of Default has
 occurred and is continuing with respect to Party A in which case Party B or a
 Reference Market-maker selected by Party B shall be Calculation Agent.

 
	
  

 	
  

 
	
 (f)

 	
  “Credit
 Support Document” means with respect to Party A: and Party
 B: the Credit Support Annex.

 
	
  

 	
  

 	
  

 
	
 (g)

 	
 “Credit Support Provider” means in
 relation to Party A: [None]

 
	
  

 	
  

 	
  

 
	
  

 	
 Credit Support Provider means in relation to Party
 B: None

 
	
  

 	
  

 	
  

 
	
 (h)

 	
 Governing
 Law; Jurisdiction. This Agreement will be governed by and
 construed in accordance with the laws of the State of New York, without
 reference to choice of law doctrine. Section 13(b) is amended by: (1)
 deleting “non-” from the second line of clause (i); and (2) deleting the
 final paragraph.

 
	
  

 	
  

 	
  

 
	
 (i)

 	
 Waiver
 of Jury Trial. Each party waives, to the fullest extent
 permitted by applicable law, any right it may have to a trial by jury in
 respect of any Proceedings relating to this Agreement or any Credit Support
 Document.

 
	
  

 	
  

 
	
 (j)

 	
 Netting
 of Payments. Clause (ii) of Section 2(c) will [not] apply
 to any amounts payable with respect to Transactions from the date of this
 Agreement.

 
	
  

 	
  

 
	
 (k)

 	
  “Affiliate”
 has the meaning specified in Section 14. 

 

Part 5. Other Provisions

	
  

 	
  

 	
  

 	
  

 
	
 (a)

 	
 Additional
 Representations. Section 3 is hereby amended by adding at
 the end thereof the following Subparagraphs:

 
	
  

 	
  

 
	
  

 	
  

 	
 (g)

 	
 It is an “Eligible Contract Participant” as defined
 in Section 1a (12) of the Commodity Exchange Act, as amended.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
 (h)

 	
 It is entering into this Agreement, any Credit
 Support Document to which it is a party, each Transaction and any other
 documentation relating to this Agreement or any Transaction as principal (and
 not as agent or in any other capacity, fiduciary or otherwise).

 
	
  

 	
  

 	
  

 	
  

 
	
 (b)

 	
 Setoff.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 (i) Upon the occurrence or
 designation of an Early Termination Date on account of an Event of Default or
 Termination Event pursuant to Section 5(b)(iv) with respect to a party hereto
 (“Y”), any amount payable by the other party (“X”) under this Agreement, any
 Specified Transaction with Y, or in respect of any other matured, liquidated
 or terminated obligation to Y will, at the option of X (and without prior
 notice to Y), be reduced by its setoff and recoupment against any amount(s)
 payable by Y to X under this Agreement, any Specified Transaction with Y or
 in respect of any other matured, liquidated or terminated obligation of Y
 (and any such amount(s) payable by Y will be discharged promptly and in all
 respects to the extent it is so set off). X, as appropriate, will give
 notice to Y after any setoff and recoupment is effected under this paragraph.
 

 

22

	
  

 	
  

 	
  

 
	
  

 	
 (ii) For purposes of the
 foregoing, X shall be entitled to convert any obligation denominated in one
 currency into another at such rates of exchange as it deems appropriate in
 good faith and in a commercially reasonable manner, to convert any obligation
 to deliver non-cash property into an obligation to deliver cash in an amount
 determined by it as it deems appropriate in good faith and in a commercially
 reasonable manner, and amounts may be set off and recouped irrespective of
 the currency, place of payment or booking office of any obligation to or from
 Y. 

 
	
  

 	
  

 
	
  

 	
 (iii) If an obligation is
 unascertained, X, as appropriate, may in good faith estimate that obligation
 and set off and recoup in respect of that estimate, subject to the relevant
 party’s accounting to the other(s) when the obligation is ascertained. 

 
	
  

 	
  

 
	
  

 	
 (iv) Nothing in this subsection shall be effective
 to create a charge or other security interest. This subsection shall be without
 prejudice and in addition to any right of setoff, recoupment, combination of
 accounts, lien or other right to which any party or any of its Affiliates is
 at any time otherwise entitled (whether by operation of law, contract or
 otherwise).

 
	
  

 	
  

 
	
 (c)

 	
 Confirmations.
 Party A will deliver to Party B a Confirmation relating to
 each Transaction.

 
	
  

 	
  

 
	
 (d)

 	
 Relationship
 Between Parties. Each party will be deemed to represent to
 the other party on the date on which it enters into a Transaction that
 (absent a written agreement between the parties that expressly imposes
 affirmative obligations to the contrary for that Transaction):-

 
	
  

 	
  

 
	
  

 	
 (i)

 	
 Non-Reliance.
 It is acting for its own account, and it has made its own independent
 decisions to enter into that Transaction and as to whether that Transaction
 is appropriate or proper for it based upon its own judgment and upon advice
 from such advisers as it has deemed necessary. It is not relying on any
 communication (written or oral) of the other party as investment advice or as
 a recommendation to enter into that Transaction; it being understood that
 information and explanations related to the terms and conditions of a
 Transaction shall not be considered investment advice or a recommendation to
 enter into that Transaction. No communication (written or oral) received from
 the other party shall be deemed to be an assurance or guarantee as to the
 expected results of that Transaction.

 
	
  

 	
  

 	
  

 
	
  

 	
 (ii)

 	
 Assessment
 and Understanding. It is capable of assessing the merits of
 and understanding (on its own behalf or through independent professional
 advice), and understands and accepts, the terms, conditions and risks of that
 Transaction. It is also capable of assuming, and assumes, the risks of that
 Transaction.

 
	
  

 	
  

 	
  

 
	
  

 	
 (iii)

 	
 Status
 of Parties. The other party is not acting as a fiduciary
 for or an adviser to it in respect of that Transaction.

 

23 

          IN
WITNESS WHEREOF, the parties have executed this Schedule by
their duly authorized officers as of the date hereof.

	
  

 	
  

 	
  

 
	
  

 	
  [SWAP
 COUNTERPARTY]

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
 Date:

 

	
  

 	
  

 	
  

 
	
  

 	
  [USSA
 FEDERAL SAVINGS BANK]

 
	
  

 	
  

 
	
  

 	
 By:

 	
  

 
	
  

 	
  

 	

 

 
	
  

 	
  

 	
 Name:

 
	
  

 	
  

 	
 Title:

 
	
  

 	
  

 	
 Date:

 

24

	
  

 
	
 SWAP TRANSACTION CONFIRMATION

 
	
  

 
	

 

 

	
  

 	
  

 
	
 Date:

 	
 [                    ],
 20___

 
	
  

 	
  

 
	
 To:

 	
 USAA Auto Owner Trust 20[  ]-[ ] (“Party B”)

 
	
  

 	
 c/o [______________________], as Owner Trustee

 
	
  

 	
 [_________________________]

 
	
  

 	
 [_________________________]

 
	
  

 	
 Attention:

 
	
  

 	
 Telephone:

 
	
  

 	
 Facsimile:

 
	
  

 	
  

 
	
 From:

 	
 [____________________________] (“Party A”)

 
	
  

 	
 [Address]

 
	
  

 	
 Attention:

 
	
  

 	
 Telephone:

 
	
  

 	
 Facsimile:

 
	
  

 	
  

 
	
 Ref. No.

 	
  

 

Dear Sir or Madam:

The purpose of this letter (this “Confirmation”) is to
confirm the terms and conditions of the Transaction entered into between us on
the Trade Date specified below (the “Transaction”). This Confirmation
constitutes a “Confirmation” as referred to in the ISDA Master Agreement
specified below.

1. The definitions and provisions contained in
(i) the 2000 ISDA Definitions (the “ISDA Definitions”), as published by
the International Swaps and Derivatives Association, Inc., and (ii) the
Sale and Servicing Agreement dated as of [______________________] (the “Sale
and Servicing Agreement”) among Party B, USAA Acceptance, LLC and USAA Federal
Savings Bank, relating to the issuance by Party B of certain debt obligations,
are incorporated into this Confirmation. In the event of any inconsistency
between the ISDA Definitions and this Confirmation, this Confirmation will
govern. References herein to a “Transaction” shall be deemed to be references
to a “Swap Transaction” for purposes of the ISDA Definitions. Capitalized terms
used but not defined herein have the meanings ascribed to them in the Sale and
Servicing Agreement.

2. The terms of the particular Transaction to which
the Confirmation relates are as follows:

	
  

 	
  

 	
  

 
	
 Transaction Type:

 	
  

 	
 Interest Rate Swap

 
	
  

 	
  

 	
  

 
	
 Currency for Payments:

 	
  

 	
 U.S. Dollars

 
	
  

 	
  

 	
  

 
	
 Notional Amount:

 	
  

 	
 For the Initial Calculation Period, the Notional
 Amount shall be equal to USD [___________]. For each subsequent
 Calculation Period, the Notional Amount shall 

 

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 be equal to the aggregate outstanding principal
 amount of the Class [__] Notes on the first day of such Calculation
 Period. With respect to any Payment Date, the aggregate outstanding principal
 amount of the Class [__] Notes will be determined using the Servicer’s
 Certificate issued on the Determination Date immediately preceding the
 Payment Date (giving effect to any reductions of the outstanding principal
 amount of the Class [__] Notes reflected in such Servicer’s
 Certificate).

 
	
  

 	
  

 	
  

 	
  

 
	
 Initial Calculation Period:

 	
  

 	
 ______, 20__ to but excluding ______, 20__.

 
	
  

 	
  

 	
  

 	
  

 
	
 Term:

 	
  

 	
  

 
	
  

 	
 Trade Date:

 	
  

 	
 ______, 20__

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Effective Date:

 	
  

 	
 ______, 20__

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Termination Date:

 	
  

 	
 The earlier of (i) [insert legal final maturity date
 of Class __ Notes] and (ii) the date on which the outstanding principal
 amount of the Class [__] Notes is reduced to zero.

 
	
  

 	
  

 	
  

 	
  

 
	
 Fixed Amounts:

 	
  

 	
 Party B

 
	
  

 	
 Fixed Rate Payer:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Calculation Period End Dates:

 	
  

 	
 Monthly on the [__] of each month, commencing
 ______, 20__, through and including the Termination Date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Payment Dates:

 	
  

 	
 Monthly on the [__] of each month, commencing
 ______, 20__, through and including the Termination Date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Business Day Convention:

 	
  

 	
 Following

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Business Day:

 	
  

 	
 Principal place of business of Party A, [New York,
 Delaware and Texas]

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Fixed Rate:

 	
  

 	
 ____%

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Fixed Rate Day Count

 Basis:

 	
  

 	
 30/360

 
	
  

 	
  

 	
  

 	
  

 
	
 Floating Amounts:

 	
  

 	
  

 
	
  

 	
 Floating Rate Payer:

 	
  

 	
 Party A

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Calculation Period End Dates:

 	
  

 	
 Monthly on the [__] of each month, commencing
 ______, 

 

2

	
  

 	
  

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
 20__, through and including the Termination Date,
 subject to adjustment in accordance with the Following Business Day
 Convention.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Payment Dates:

 	
  

 	
 Monthly on the [__] of each month, commencing
 ______, 20__, through and including the Termination Date.

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Business Day Convention:

 	
  

 	
 Following

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Business Day:

 	
  

 	
 Principal place of business of Party A, [New
 York, Delaware and Texas]

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
                For
 Payment Dates:

 	
  

 	
  

 
	
  

 	
                For
 Reset Dates:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 For the determination of the 

 Floating Rate:

 	
  

 	
 London

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Floating Rate Option:

 	
  

 	
 USD LIBOR BBA

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Designated Maturity:

 	
  

 	
 1 Month

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Spread:

 	
  

 	
 None

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Floating Rate Day Count:

 	
  

 	
  

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
                Basis:

 	
  

 	
 Actual/360

 
	
  

 	
                Reset
 Dates:

 	
  

 	
 The first day of each Calculation Period

 
	
  

 	
  

 	
  

 	
  

 
	
  

 	
 Compounding:

 	
  

 	
 Inapplicable

 

3. The additional provisions of this Confirmation are
as follows:

	
  

 	
  

 	
  

 
	
 Calculation Agent:

 	
  

 	
 As specified in the Agreement

 
	
  

 	
  

 	
  

 
	
 Payments to Party A:

 	
  

 	
 [SWAP COUNTERPARTY WIRE INSTRUCTIONS]

 
	
  

 	
  

 	
  

 
	
 Payments to Party B:

 	
  

 	
 [TRUST WIRE INSTRUCTIONS]

 

4. Documentation

This Confirmation supplements, forms a part of, and is
subject to, the 1992 ISDA Master Agreement dated as of [   ], 20[  ] (including
the Schedule thereto) as amended and supplemented from time to time (the
“Agreement”) between you and us. All provisions contained in the Agreement
govern this Confirmation except as expressly modified herein.

3

Unless otherwise provided in the Agreement, this
Confirmation is governed by the laws of the State of New York.

Please confirm that the foregoing correctly sets forth
the terms of our agreement by executing a copy of this Confirmation and
returning it to us.

Very truly yours,

 [PARTY “A”]

	
  

 	
  

 	
  

 
	
 By: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 

Accepted and confirmed as of the date first above
written:

USAA AUTO
OWNER TRUST 20[__]-[_]

By: [_______________________________], 

not in its individual capacity but solely in its 

capacity as Owner Trustee

	
  

 	
  

 	
  

 
	
 By: 

 	
  

 	
  

 
	
  

 	

 

 	
  

 
	
 Name:

 	
  

 
	
 Title:

 	
  

 

4

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