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 Regarding the Purchased Assets	4
	 	SECTION 3.3	 	Representations and Warranties of the Bank as to each Receivable	4
	 	SECTION 3.4	 	Repurchase upon Breach	5
	 	SECTION 3.5	 	Protection of Title	5
	 	SECTION 3.6	 	Other Liens or Interests	6
	 	 	 	 	 
	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	8
	 	SECTION 4.4	 	Headings	8
	 	SECTION 4.5	 	Counterparts	8
	 	SECTION 4.6	 	Amendment	8
	 	SECTION 4.7	 	Waivers	9
	 	SECTION 4.8	 	Entire Agreement	9
	 	SECTION 4.9	 	Severability of Provisions	9
	 	SECTION 4.10	 	Binding Effect	10
	 	SECTION 4.11	 	Acknowledgment and Agreement	10
	 	SECTION 4.12	 	Cumulative Remedies	10
	 	SECTION 4.13	 	Nonpetition Covenant	10
	 	SECTION 4.14	 	Submission to Jurisdiction; Waiver of Jury Trial	11
	 	SECTION 4.15	 	Third Party Beneficiaries	11
	 	SECTION 4.16	 	[Limitation of Rights]	11

    	 	i	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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.

    	 	 	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 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 in cash 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 collectability 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
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

    	 	-2-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 collectability 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.

    	 	-3-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

(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 Regarding the Purchased Assets. On the date hereof, the Bank hereby makes the following representations and warranties
to the Purchaser. Such 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 under the Sale and Servicing Agreement, and the Grant of
the Purchased Assets by the Issuer to the Indenture Trustee pursuant to the Indenture.

 

(a) The Receivables were selected using
selection procedures that were not known or intended by the Bank to be adverse to the Issuer.

 

(b) The Receivables and the other Purchased
Assets have been validly assigned by the Bank to the Purchaser.

 

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

 

(d) No Receivables are 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 an Originator that includes a description of collateral
covering any Receivable other than any financing statement relating to security interests granted under the Transaction Documents
or that have been or, prior to the assignment of such Receivables hereunder, will be terminated, amended or released. This Agreement
creates a valid and continuing security interest in the Receivables (other than the Related Security with respect thereto, to the
extent that an ownership interest therein cannot be perfected by the filing of a financing statement) 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 Bank.

 

(e) The representations and warranties
regarding creation, perfection and priority of security interests in the Purchased Assets, which are attached to this Agreement
as Schedule I, are true and correct to the extent that they are applicable.

 

SECTION 3.3 Representations and Warranties
of the Bank as to each Receivable. On the date hereof, the Bank hereby makes the representations and warranties set forth on
Schedule II 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 conveyance of the Purchased Assets to the Purchaser pursuant to this Agreement,
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

    	 	-4-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

Document, the Bank shall not be required to
notify any insurer with respect to any Insurance Policy obtained by an Obligor. The Bank hereby agrees that the Issuer shall have
the right to enforce any and all rights under this Agreement assigned to the Issuer under the Sale and Servicing Agreement, including
the right to cause the Bank to repurchase any Receivable with respect to which it is in breach of any of its representation and
warranties set forth in Schedule II, directly against the Bank as though the Issuer were a party to this Agreement, and
the Issuer shall not be obligated to exercise any such rights indirectly through the Depositor. Any inaccuracy in any of such representations
or warranties will be deemed not to constitute a breach of such representation or warranty if such inaccuracy does not affect the
ability of the Issuer to receive and retain payment in full on such Receivable.

 

SECTION 3.4 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 3.3 with respect to any Receivable 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 3.5 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 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

    	 	-5-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 3.6 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.

 

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

    	 	-6-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 collectability 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 (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
I to the Sale and Servicing Agreement, by electronic transmission, and addressed in each case as specified on Schedule
I 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,

    	 	-7-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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

 

(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

    	 	-8-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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.

 

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

    	 	-9-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 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.

    	 	-10-	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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 Third Party Beneficiaries.
This Agreement shall inure to the benefit of and be binding upon the parties hereto and their respective successors and permitted
assigns and each of the Issuer and the Indenture Trustee shall be an express third party beneficiary hereof and may enforce the
provisions hereof as if it were a party hereto. Except as otherwise provided in this Section, no other Person will have any right
hereunder.

 

SECTION 4.16 [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]

    	 	-11-	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

 

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”) 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.

 

Perfection

 

5. 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 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.”

 

6. With respect to Receivables that constitute
tangible chattel paper, either:

 

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

    	 	Schedule I-1	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

		b.	Such tangible chattel paper is 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 tangible chattel paper solely on behalf and
for the benefit of the Indenture Trustee; or

 

		c.	The Servicer received possession of such 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

 

7. 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.

 

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

 

9. 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.

 

10. None of the 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

 

11. 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.

 

No Waiver

 

12. 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 I-2	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

SCHEDULE II

 

REPRESENTATIONS AND WARRANTIES WITH
RESPECT TO THE RECEIVABLES

 

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

 

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

 

		(ii)	as of the Closing Date, is secured by a first priority 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;

 

		(iii)	contains provisions that permit the repossession and sale of the Financed Vehicle upon a default under the Receivable by the
Obligor;

 

		(iv)	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; and

 

		(v)	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)	no Receivable has a Contract Rate of less than [ ]%;

 

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

 

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

 

		(v)	each Receivable has a scheduled maturity date on or before [     ];

 

		(vi)	no Receivable was more than [30] days past due as of the Cut-Off Date;

 

		(vii)	each Receivable was not noted in the records of the Servicer as being the subject of any pending bankruptcy or insolvency Proceeding;

    	 	Schedule II-1	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

		(viii)	each Receivable is a Simple Interest Receivable.

 

		(c)	Compliance with Law. The Receivable complied at the time it was originated or made in all material respects with all
requirements of law in effect at that time and applicable to such Receivable.

 

		(d)	Binding Obligation. Each Receivable was written on a form contract generally acceptable to the Bank at the time the
Bank entered such contract. Each receivable constitutes the legal and binding payment obligation 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.

 

		(e)	Receivable in Force. As of the Cut-off Date, neither the Banks records nor the Receivable Files indicates that any Receivable
was satisfied, subordinated or rescinded or that any Financed Vehicle was released from the lien granted by the Receivable.

 

		(f)	No Default; No Waiver. 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 and the Seller has not waived any of the foregoing.

 

		(g)	Insurance. Under the terms of each Receivable, the Obligor is required to maintain physical damage insurance covering
the related Financed Vehicle.

 

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

 

		(i)	Assignment. Each Receivable has been originated in, or is subject to the laws of, a jurisdiction under which the sale,
transfer, assignment, conveyance or pledge of such Receivable would be unlawful, void, or voidable.

 

		(j)	Good Title. As of the Closing Date and immediately prior to the sale and transfer contemplated in the Sale and Servicing
Agreement, the Seller had good and marketable title to and was the sole owner of each Receivable free and clear of all Liens (except
any Lien which will be released prior to assignment of such Receivable hereunder), and, immediately upon the sale and transfer
thereof, the Issuer will have good and marketable title to each Receivable, free and clear of all Liens (other than Permitted Liens).

 

		(k)	Characterization of Receivables. Each Receivable constitutes either “tangible chattel paper” or “electronic
chattel paper,” each as defined in the UCC as in effect in the state of origination.

    	 	Schedule II-2	Purchase Agreement (USAA 20[ ]-[ ])

    	

    

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

 

		(m)	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.

    	 	Schedule II-3	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 

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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.

    	16

    	

    
12. Notices

 

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

 

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

 

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

 

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

 

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

 

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

 

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

 

(b) Change of
Addresses. Either party may by notice to the other change the address, telex or facsimile number or electronic messaging
system details at which notices or other communications are to be given to it.

 

13. Governing Law and Jurisdiction

 

(a) Governing
Law. This Agreement will be governed by and construed in accordance with the law specified in the Schedule.

 

(b) Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”), each party irrevocably:

 

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

[USAA 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:	 

	 	 	 	 
	 	[USAA 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:	 
	Fixed Rate Payer:	Party B 
	 	 
	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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