Document:

EX-10.2

 

Exhibit 10.2

EXECUTION COPY

 

 

AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT

dated as of September 14, 2007

among

COOPER RECEIVABLES LLC,

as Seller

COOPER TIRE & RUBBER COMPANY,

as Servicer

THE VARIOUS PURCHASER GROUPS FROM TIME TO TIME PARTY HERETO,

THE FINANCIAL INSTITUTION FROM TIME TO TIME PARTY HERETO

as LC Participants

and

PNC BANK, NATIONAL ASSOCIATION,

as Administrator and LC Bank

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 

	 	ARTICLE I	 	 	 	 
	 

	 	AMOUNTS AND TERMS OF THE PURCHASES	 	 	 	 
	Section 1.1

	 	Purchase Facility	 	 	2	 
	Section 1.2

	 	Making Purchases	 	 	3	 
	Section 1.3

	 	Purchased Interest Computation	 	 	6	 
	Section 1.4

	 	Settlement Procedures	 	 	6	 
	Section 1.5

	 	Fees	 	 	10	 
	Section 1.6

	 	Payments and Computations, Etc.	 	 	11	 
	Section 1.7

	 	Increased Costs	 	 	11	 
	Section 1.8

	 	Requirements of Law
	 	 	12	 
	Section 1.9

	 	Funding Losses
	 	 	12	 
	Section 1.10

	 	Taxes
	 	 	13	 
	Section 1.11

	 	Inability to Determine Euro-Rate
	 	 	13	 
	Section 1.12

	 	Letters of Credit
	 	 	14	 
	Section 1.13

	 	Issuance of Letters of Credit
	 	 	14	 
	Section 1.14

	 	Requirements For Issuance of Letters of Credit
	 	 	15	 
	Section 1.15

	 	Disbursements, Reimbursement
	 	 	15	 
	Section 1.16

	 	Repayment of Participation Advances
	 	 	16	 
	Section 1.17

	 	Documentation
	 	 	16	 
	Section 1.18

	 	Determination to Honor Drawing Request
	 	 	16	 
	Section 1.19

	 	Nature of Participation and Reimbursement Obligations
	 	 	17	 
	Section 1.20

	 	Indemnity
	 	 	18	 
	Section 1.21

	 	Liability for Acts and Omissions
	 	 	19	 
	Section 1.22

	 	Extension of Termination Date
	 	 	20	 
	 

	 	ARTICLE II	 	 	 	 
	 

	 	REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS	 	 	 	 
	Section 2.1

	 	Representations and Warranties; Covenants
	 	 	20	 
	Section 2.2

	 	Termination Events
	 	 	21	 
	 

	 	ARTICLE III	 	 	 	 
	 

	 	INDEMNIFICATION	 	 	 	 
	Section 3.1

	 	Indemnities by the Seller
	 	 	21	 
	Section 3.2

	 	Indemnities by the Servicer
	 	 	22	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 

	 	ARTICLE IV

ADMINISTRATION AND COLLECTIONS	 	 	 	 
	Section 4.1

	 	Appointment of the Servicer
	 	 	23	 
	Section 4.2

	 	Duties of the Servicer
	 	 	24	 
	Section 4.3

	 	Lock-Box Account Arrangements
	 	 	25	 
	Section 4.4

	 	Enforcement Rights
	 	 	25	 
	Section 4.5

	 	Responsibilities of the Seller
	 	 	26	 
	Section 4.6

	 	Servicing Fee
	 	 	27	 
	 

	 	ARTICLE V	 	 	 	 
	 

	 	THE AGENTS	 	 	 	 
	Section 5.1

	 	Appointment and Authorization
	 	 	27	 
	Section 5.2

	 	Delegation of Duties
	 	 	28	 
	Section 5.3

	 	Exculpatory Provisions
	 	 	28	 
	Section 5.4

	 	Reliance by Agents
	 	 	28	 
	Section 5.5

	 	Notice of Termination Events
	 	 	29	 
	Section 5.6

	 	Non-Reliance on Administrator, Purchaser Agents and Other Purchasers
	 	 	29	 
	Section 5.7

	 	Administrators and Affiliates
	 	 	30	 
	Section 5.8

	 	Indemnification
	 	 	30	 
	Section 5.9

	 	Successor Administrator
	 	 	31	 
	 

	 	ARTICLE VI	 	 	 	 
	 

	 	MISCELLANEOUS	 	 	 	 
	Section 6.1

	 	Amendments, Etc.	 	 	32	 
	Section 6.2

	 	Notices, Etc.	 	 	32	 
	Section 6.3

	 	Successors and Assigns; Participations; Assignments
	 	 	32	 
	Section 6.4

	 	Costs, Expenses and Taxes
	 	 	34	 
	Section 6.5

	 	No Proceedings; Limitation on Payments
	 	 	35	 
	Section 6.6

	 	GOVERNING LAW AND JURISDICTION
	 	 	36	 
	Section 6.7

	 	Confidentiality
	 	 	36	 
	Section 6.8

	 	Execution in Counterparts
	 	 	37	 
	Section 6.9

	 	Survival of Termination
	 	 	37	 
	Section 6.10

	 	WAIVER OF JURY TRIAL
	 	 	37	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	Section 6.11

	 	Sharing of Recoveries
	 	 	37	 
	Section 6.12

	 	Right of Setoff
	 	 	37	 
	Section 6.13

	 	Entire Agreement
	 	 	38	 
	Section 6.14

	 	Headings
	 	 	38	 
	Section 6.15

	 	Purchaser Groups’ Liabilities
	 	 	38	 

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	EXHIBIT I

	 	Definitions
	EXHIBIT II

	 	Conditions of Purchases
	EXHIBIT III

	 	Representations and Warranties
	EXHIBIT IV

	 	Covenants
	EXHIBIT V

	 	Termination Events
	SCHEDULE I

	 	Credit and Collection Policy
	SCHEDULE II

	 	Lock-Box Banks and Lock-Box Accounts
	SCHEDULE III

	 	Trade Names
	SCHEDULE IV

	 	Actions and Proceedings
	ANNEX A

	 	Form of Information Package
	ANNEX B

	 	Form of Purchase Notice
	ANNEX C

	 	Form of Assumption Agreement
	ANNEX D

	 	Form of Transfer Supplement
	ANNEX E

	 	Form of Paydown Notice
	ANNEX F

	 	Form of Letter of Credit Application

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     This AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT (as amended, restated,
supplemented or otherwise modified from time to time, this “Agreement”) is entered into as
of September 14, 2007, among COOPER RECEIVABLES LLC, a Delaware limited liability company, as
seller (the “Seller”), COOPER TIRE & RUBBER COMPANY, a Delaware corporation (together with
its successors and permitted assigns, “Cooper Tire”), as initial servicer (in such
capacity, together with its successors and permitted assigns in such capacity, the
“Servicer”), THE VARIOUS PURCHASERS AND PURCHASER AGENTS FROM TIME TO TIME PARTY HERETO,
THE FINANCIAL INSTITUTIONS LISTED ON THE SIGNATURE PAGES HERETO AS LC PARTICIPANTS (in such
capacity, together with their successors and assigns in such capacity, the “LC
Participants”) and PNC BANK, NATIONAL ASSOCIATION, as Administrator (in such capacity, together
with its successors and assigns in such capacity, the “Administrator”) and as issuer of
Letters of Credit (in such capacity, together with its successors and assigns in such capacity, the
“LC Bank”).

     PRELIMINARY STATEMENTS. Certain terms that are capitalized and used throughout this Agreement
are defined in Exhibit I. References in the Exhibits hereto to the “Agreement” refer to
this Agreement, as amended, supplemented or otherwise modified from time to time.

     The Seller (i) desires to sell, transfer and assign an undivided variable percentage interest
in a pool of receivables, and the Purchasers desire to acquire such undivided variable percentage
interest, as such percentage interest shall be adjusted from time to time based upon, in part,
reinvestment payments that are made by such Purchasers and (ii) may, subject to the terms and
conditions hereof, request that the LC Bank issue or cause the issuance of one or more Letters of
Credit.

     This Agreement amends and restates in its entirety, as of the Closing Date, that certain
Receivables Purchase Agreement, dated as of August 30, 2006 (as amended, restated, supplemented or
otherwise modified prior to the date hereof, the “Original Agreement”), among the Seller,
the Servicer, the Purchasers and Purchaser Agents from time to time party thereto and the
Administrator. This Agreement does not constitute a novation or replacement of the Original
Agreement, but hereby ratifies and reaffirms the Original Agreement as amended and restated by this
Agreement. Notwithstanding the amendment and restatement of the Original Agreement by this
Agreement, (i) the Seller and Servicer shall continue to be liable to each Indemnified Party and
Affected Person (as such terms are defined in the Original Agreement) for fees and expenses which
are accrued and unpaid under the Original Agreement on the date hereof (collectively, the “Original
Agreement Outstanding Amounts”) and all agreements to indemnify such parties in connection with
events or conditions arising or existing prior to the effective date of this Agreement and (ii) the
security interest created under the Original Agreement shall remain in full force and effect as
security for such Original Agreement Outstanding Amounts until such Original Agreement Outstanding
Amounts shall have been paid in full. Upon the effectiveness of this Agreement, PNC, as LC Bank,
and PNC and each other LC Participant noted on the signature pages hereto shall become a party to
this Agreement and each reference to the Original Agreement in any other document, instrument or
agreement shall mean and be a reference to this Agreement.

     In consideration of the mutual agreements, provisions and covenants contained herein, the
sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

 

 

ARTICLE I

AMOUNTS AND TERMS OF THE PURCHASES

     Section 1.1 Purchase Facility.

     (a) On the terms and subject to the conditions hereof, the Seller may, from time to time
before the Facility Termination Date, (i) ratably (based on the aggregate Commitments of the
Related Committed Purchasers in their respective Purchaser Groups) request that the Conduit
Purchasers, or, only if a Conduit Purchaser denies such request or is unable to fund (and provides
notice of such denial or inability to the Seller, the Administrator and its Purchaser Agent),
ratably request that the Related Committed Purchasers, make purchases of and reinvestments in
undivided percentage ownership interests with regard to the Purchased Interest from the Seller from
time to time from the date hereof to the Facility Termination Date and (ii) request that the LC
Bank issue or cause the issuance of Letters of Credit, in each case subject to the terms hereof
(each such purchase, reinvestment or issuance is referred to herein as a “Purchase”).
Subject to Section 1.4(b), concerning reinvestments, at no time will a Conduit Purchaser
have any obligation to make a purchase. Each Related Committed Purchaser severally hereby agrees,
on the terms and subject to the conditions hereof, to make purchases of and reinvestments in
undivided percentage ownership interests with regard to the Purchased Interest from the Seller from
time to time from the date hereof to the Facility Termination Date, based on the applicable
Purchaser Group’s Ratable Share of each purchase requested pursuant to Section 1.2(a) (and,
in the case of each Related Committed Purchaser, its Commitment Percentage of its Purchaser Group’s
Ratable Share of such Purchase) and, on the terms of and subject to the conditions of this
Agreement, the LC Bank agrees to issue Letters of Credit in return for (and each LC Participant
hereby severally agrees to make participation advances in connection with any draws under such
Letters of Credit equal to such LC Participant’s Pro Rata Share of such draws), undivided
percentage ownership interests with regard to the Purchased Interest from the Seller from time to
time from the date hereof to the Facility Termination Date; provided, however, that
under no circumstances shall any Purchaser make any purchase or reinvestment (including, without
limitation, any mandatory deemed Purchases pursuant to Section 1.1(b)) or issue any Letters of
Credit hereunder, as applicable, if, after giving effect to such Purchase, the (i) aggregate
outstanding amount of the Capital funded by such Purchaser, when added to all other Capital funded
by all other Purchasers in such Purchaser’s Purchaser Group would exceed (A) its Purchaser Group’s
Group Commitment (as the same may be reduced from time to time pursuant to Section 1.1(c))
minus (B) the related LC Participant’s Pro Rata Share of the face amount of any outstanding Letters
of Credit or (ii) the aggregate outstanding Capital plus the LC Participation Amount would exceed
the Purchase Limit.

          The Seller may, subject to the requirements and conditions herein, use the proceeds of any
purchase by the Purchasers, hereunder, to satisfy its Reimbursement Obligation to the LC Bank and
the LC Participants (ratably, based on the outstanding amounts funded by the LC Bank and each such
LC Participant) pursuant to Section 1.15 below.

     (b) In addition, in the event the Seller fails to reimburse the LC Bank for the full amount of
any drawing under any Letter of Credit on the applicable Drawing Date (out of its own funds
available therefor) pursuant to Section 1.15, then the Seller shall, automatically (and

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without the requirement of any further action on the part of any Person hereunder), be deemed
to have requested a new purchase from the Conduit Purchasers or Related Committed Purchasers, as
applicable, on such date, on the terms and subject to the conditions hereof, in an amount equal to
the amount of such Reimbursement Obligation at such time. Subject to the limitations on funding set
forth in the remainder of this paragraph (a), below (and the other requirements and conditions
herein), the Conduit Purchasers or Related Committed Purchasers, as applicable, shall fund such
deemed purchase request and deliver the proceeds thereof directly to the Administrator to be
immediately distributed (ratably) to the LC Bank and the applicable LC Participants in satisfaction
of the Seller’s Reimbursement Obligation pursuant to Section 1.15, below, to the extent of the
amounts permitted to be funded by the Conduit Purchasers or Related Committed Purchasers, as
applicable, at such time, hereunder.

     (c) The Seller may, upon 60 days’ written notice to the Administrator and each Purchaser
Agent, reduce the unfunded portion of the Purchase Limit in whole or in part (but not below the
amount which would cause the Group Capital of any Purchaser Group to exceed its Group Commitment
(after giving effect to such reduction)); provided that each partial reduction shall be in
the amount of at least $5,000,000, or an integral multiple of $1,000,000 in excess thereof and the
Purchase Limit shall in no event be reduced below $20,000,000. Each reduction in the Commitments
hereunder shall be made ratably among the Purchasers in accordance with their respective pro rata
shares. The Administrator shall promptly advise the Purchaser Agents of any notice received by it
pursuant to this Section 1.1(c); it being understood that (in addition to and without
limiting any other requirements for termination, prepayment and/or the funding of the LC Collateral
Account hereunder) no such termination or reduction shall be effective unless and until (i) in the
case of a termination, the amount on deposit in the LC Collateral Account is at least equal to the
then outstanding LC Participation Amount and (ii) in the case of a partial reduction, the amount on
deposit in the LC Collateral Account is at least equal to the positive difference between the then
outstanding LC Participation Amount and the Purchase Limit as so reduced by such partial reduction.

     Section 1.2 Making Purchases. (a) Each Funded Purchase (but not reinvestment) of
undivided percentage ownership interests with regard to the Purchased Interest hereunder may be
made on any day upon the Seller’s irrevocable written notice in the form of Annex B (each,
a “Purchase Notice”) delivered to the Administrator and each Purchaser Agent in accordance
with Section 6.2 (which notice must be received by the Administrator and each Purchaser
Agent before 2:00 p.m., New York City Time) at least two Business Days before the requested
Purchase Date, which notice shall specify: (A) in the case of a Funded Purchase (other than one
made pursuant to Section 1.15(b)), the amount requested to be paid to the Seller (such
amount, which shall not be less than $300,000 (or such lesser amount as agreed to by the
Administrator and the Majority Purchaser Agents) and shall be in integral multiples of $100,000,
with respect to each Purchaser Group, (B) the date of such Funded Purchase (which shall be a
Business Day) and (C) the pro forma calculation of the Purchased Interest after giving effect to
the increase in the Aggregate Capital.

     (b) On the date of each Funded Purchase (but not reinvestment, issuance of a Letter of Credit
or a Funded Purchase pursuant to Section 1.2(e)) of undivided percentage ownership
interests with regard to the Purchased Interest hereunder, each applicable Conduit Purchaser or

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Related Committed Purchaser, as the case may be, shall, upon satisfaction of the applicable
conditions set forth in Exhibit II, make available to the Seller in same day funds, at PNC
Bank, National Association, account number 1014303015 (or such other account as may be so
designated in writing by the Seller to the Administrator and each Purchaser Agent) an amount equal
to the portion of Capital relating to the undivided percentage ownership interest then being funded
by such Purchaser.

     (c) Effective on the date of each Funded Purchase or other Purchase pursuant to this
Section 1.2 and each reinvestment pursuant to Section 1.4, the Seller hereby sells
and assigns to the Administrator for the benefit of the Purchasers (ratably, based on the sum of
Capital plus the LC Participation Amount outstanding at such time for each such Purchaser’s
Capital) an undivided percentage ownership interest in: (i) each Pool Receivable then existing,
(ii) all Related Security with respect to such Pool Receivables, and (iii) all Collections with
respect to, and other proceeds of, such Pool Receivables and Related Security.

     (d) To secure all of the Seller’s obligations (monetary or otherwise) under this Agreement and
the other Transaction Documents to which it is a party, whether now or hereafter existing or
arising, due or to become due, direct or indirect, absolute or contingent, the Seller hereby grants
to the Administrator, for the benefit of the Purchasers, a security interest in all of the Seller’s
right, title and interest (including any undivided interest of the Seller) in, to and under all of
the following, whether now or hereafter owned, existing or arising: (i) all Pool Receivables, (ii)
all Related Security with respect to such Pool Receivables, (iii) all Collections with respect to
such Pool Receivables, (iv) the Lock-Box Accounts and all amounts on deposit therein, and all
certificates and instruments, if any, from time to time evidencing such Lock-Box Accounts and
amounts on deposit therein, (v) all rights (but none of the obligations) of the Seller under the
Sale Agreement, (vi) all proceeds of, and all amounts received or receivable under any or all of,
the foregoing and (vii) all of its other property (collectively, the “Pool Assets”). The
Seller hereby authorizes the Administrator to file financing statements describing as the
collateral covered thereby as “all of the debtor’s personal property or assets” or words to that
effect, notwithstanding that such wording may be broader in scope than the collateral described in
this Agreement. The Administrator, for the benefit of the Purchasers, shall have, with respect to
the Pool Assets, and in addition to all the other rights and remedies available to the
Administrator and the Purchasers, all the rights and remedies of a secured party under any
applicable UCC.

     (e) Whenever the LC Bank issues a Letter of Credit pursuant to Section 1.12 hereof,
each LC Participant shall, automatically and without further action of any kind upon the effective
date of issuance of such Letter of Credit, have irrevocably been deemed to make a Funded Purchase
hereunder in the event that such Letter of Credit is subsequently drawn and such drawn amount shall
not have been reimbursed pursuant to Section 1.15 upon such draw in an amount equal to its
Pro Rata Share of such unreimbursed draw. If the LC Bank pays a drawing under a Letter of Credit
that is not reimbursed by the Seller on the applicable Drawing Date, the LC Bank shall be deemed to
have made a Funded Purchase in an amount equal to its Pro Rata Share of such unreimbursed drawing.
All such Funded Purchases shall accrue Discount from the date of such draw. In the event that any
Letter of Credit expires or is surrendered without being drawn (in whole or in part) then, in such
event, the foregoing commitment to make Funded

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Purchases shall expire with respect to such Letter of Credit and the LC Participation Amount
shall automatically reduce by the amount of the Letter of Credit which is no longer outstanding.

     (f) The Seller may, with the written consent of the Administrator and each Purchaser Agent
(and, in the case of a new related LC Participant, the LC Bank), add additional Persons as
Purchasers (either to an existing Purchaser Group or by creating new Purchaser Groups) or cause an
existing Related Committed Purchaser or related LC Participant to increase its Commitment in
connection with a corresponding increase in the Purchase Limit; provided, however,
that the Commitment of any Related Committed Purchaser or related LC Participant may only be
increased with the prior written consent of such Purchaser. Each new Conduit Purchaser, Related
Committed Purchaser or related LC Participant (or Purchaser Group) shall become a party hereto, by
executing and delivering to the Administrator and the Seller, an Assumption Agreement in the form
of Annex C hereto (which Assumption Agreement shall, in the case of any new Conduit
Purchaser, Related Committed Purchaser or related LC Participant, be executed by each Person in
such new Purchaser’s Purchaser Group).

     (g) Each Related Committed Purchaser’s and related LC Participant’s obligations hereunder
shall be several, such that the failure of any Related Committed Purchaser or related LC
Participant to make a payment in connection with any purchase hereunder, or drawing under a Letter
of Credit hereunder, as the case may be, shall not relieve any other Related Committed Purchaser or
related LC Participant of its obligation hereunder to make payment for any Funded Purchase or such
drawing. Further, in the event any Related Committed Purchaser or related LC Participant fails to
satisfy its obligation to make a purchase or payment with respect to such drawing as required
hereunder, upon receipt of notice of such failure from the Administrator (or any relevant Purchaser
Agent), subject to the limitations set forth herein, the non-defaulting Related Committed
Purchasers or related LC Participants in such defaulting Related Committed Purchaser’s or related
LC Participant’s Purchaser Group shall fund the defaulting Related Committed Purchaser’s or related
LC Participant’s Commitment Percentage of the related Purchase or drawing pro rata
in proportion to their relative Commitment Percentages (determined without regard to the Commitment
Percentage of the defaulting Related Committed Purchaser or related LC Participant; it
being understood that a defaulting Related Committed Purchaser’s or related LC
Participant’s Commitment Percentage of any Purchase or drawing shall be first put to the Related
Committed Purchasers or related LC Participants in such defaulting Related Committed Purchaser’s or
related LC Participant’s Purchaser Group and thereafter if there are no other Related Committed
Purchasers or related LC Participants in such Purchaser Group or if such other Related Committed
Purchasers or related LC Participants are also defaulting Related Committed Purchasers or related
LC Participants, then such defaulting Related Committed Purchaser’s or related LC Participant’s
Commitment Percentage of such Purchase or drawing shall be put to each other Purchaser Group
ratably and applied in accordance with this paragraph (g)). Notwithstanding anything in
this paragraph (g) to the contrary, no Related Committed Purchaser or related LC
Participant shall be required to make a Purchase or payment with respect to such drawing pursuant
to this paragraph for an amount which would cause the aggregate Capital of such Related Committed
Purchaser or Pro Rata Share of the face amount of any outstanding Letter of Credit of such related
LC Participant (after giving effect to such Purchase or payment with respect to such drawing) to
exceed its Commitment.

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     Section 1.3 Purchased Interest Computation. The Purchased Interest shall be initially
computed on the Closing Date. Thereafter, until the Facility Termination Date, such Purchased
Interest shall be automatically recomputed (or deemed to be recomputed) on each Business Day other
than a Termination Day. From and after the occurrence of any Termination Day, the Purchased
Interest shall (until the event(s) giving rise to such Termination Day are satisfied or are waived
by the Administrator in accordance with Section 2.2) be deemed to be 100%. The Purchased
Interest shall become zero when (a) the Aggregate Capital thereof and Aggregate Discount thereon
shall have been paid in full, (b) an amount equal to 100% of the LC Participation Amount shall have
been deposited in the LC Collateral Account, or all Letters of Credit shall have expired and (c)
all the amounts owed by the Seller and the Servicer hereunder to each Purchaser, the Administrator
and any other Indemnified Party or Affected Person are paid in full, and the Servicer shall have
received the accrued Servicing Fee thereon.

     Section 1.4 Settlement Procedures.

     (a) The collection of the Pool Receivables shall be administered by the Servicer in accordance
with this Agreement. The Seller shall provide to the Servicer on a timely basis all information
needed for such administration, including notice of the occurrence of any Termination Day and
current computations of the Purchased Interest.

     (b) The Servicer shall, on each day on which Collections of Pool Receivables are received (or
deemed received) by the Seller or the Servicer:

     (i) set aside and hold in trust (and shall, at the request of the Administrator,
segregate in a separate account approved by the Administrator) for the benefit of each
Purchaser Group, out of such Collections, first, an amount equal to the Aggregate Discount
accrued through such day for each Portion of Capital and not previously set aside, second,
an amount equal to the fees set forth in each Purchaser Group Fee Letter accrued and unpaid
through such day, and third, to the extent funds are available therefor, an amount equal to
the aggregate of each Purchasers’ Share of the Servicing Fee accrued through such day and
not previously set aside,

     (ii) subject to Section 1.4(f), if such day is not a Termination Day, remit to
the Seller, ratably, on behalf of each Purchaser Group, the remainder of such Collections.
Such remainder shall, to the extent representing a return on the Aggregate Capital, ratably,
according to each Purchaser’s Capital, be automatically reinvested in Pool Receivables, and
in the Related Security, Collections and other proceeds with respect thereto;
provided, however, that if the Purchased Interest would exceed 100%, then
the Servicer shall not reinvest, but shall set aside and hold in trust for the benefit of
the Purchasers (and shall, at the request of the Administrator, segregate in a separate
account approved by the Administrator) a portion of such Collections that, together with the
other Collections set aside pursuant to this paragraph, shall equal the amount necessary to
reduce the Purchased Interest to 100%, which amount shall be deposited ratably to each
Purchaser Agent’s account (for the benefit of its related Purchasers) on the next Settlement
Date in accordance with Section 1.4(c); provided, further, that (x)
in the case of any Purchaser that is a Conduit Purchaser, if such Purchaser has provided
notice (a “Declining Notice”) to its Purchaser Agent, the Administrator, and the
Servicer that such

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Purchaser (a “Declining Conduit Purchaser”) no longer wishes Collections with
respect to any Portion of Capital funded or maintained by such Purchaser to be reinvested
pursuant to this clause (ii), and (y) in the case of any Purchaser that has provided
notice (an “Exiting Notice”) to its Purchaser Agent of either its refusal, pursuant
to Section 1.22, to extend its Commitment hereunder (an “Exiting Purchaser”)
then in either case (x) or (y), above, such Collections shall not be reinvested and shall
instead be held in trust for the benefit of such Purchaser and applied in accordance with
clause (iii), below.

     (iii) if such day is a Termination Day (or any day following the provision of a
Declining Notice or an Exiting Notice), set aside, segregate and hold in trust (and shall,
at the request of the Administrator, segregate in a separate account approved by the
Administrator) for the benefit of each Purchaser Group the entire remainder of such
Collections (or in the case of a Declining Conduit Purchaser or an Exiting Purchaser an
amount equal to such Purchaser’s ratable share of such Collections based on its Capital;
provided, that solely for the purpose of determining such Purchaser’s ratable share
of such Collections, such Purchaser’s Capital shall be deemed to remain constant from the
date of the provision of a Declining Notice or an Exiting Notice, as the case may be, until
the date such Purchaser’s Capital has been paid in full; it being
understood that if such day is also a Termination Day, such Declining Conduit
Purchaser’s or Exiting Purchaser’s Capital shall be recalculated taking into account amounts
received by such Purchaser in respect of this parenthetical and thereafter Collections shall
be set aside for such Purchaser ratably in respect of its Capital (as recalculated));
provided, that if amounts are set aside and held in trust on any Termination Day of
the type described in clause (a) of the definition of “Termination Day” (or any day
following the provision of a Declining Notice or an Exiting Notice) and, thereafter, the
conditions set forth in Section 2 of Exhibit II are satisfied or waived by
the Administrator and the Majority Purchaser Agents (or in the case of a Declining Notice or
an Exiting Notice, such Declining Notice or Exiting Notice, as the case may be, has been
revoked by the related Declining Conduit Purchaser or Exiting Purchaser, respectively and
written notice thereof has been provided to the Administrator, the related Purchaser Agent
and the Servicer), such previously set-aside amounts shall, to the extent representing a
return on Aggregate Capital (or the Capital of the Declining Conduit Purchaser or Exiting
Purchaser, as the case may be) and ratably in accordance with each Purchaser’s Capital, be
reinvested in accordance with clause (ii) on the day of such subsequent satisfaction
or waiver of conditions or revocation of Declining Notice or Exiting Notice, as the case may
be, and

     (iv) release to the Seller (subject to Section 1.4(f)) for its own account any
Collections in excess, if any, of: (x) amounts required to be reinvested in accordance with
clause (ii) or the proviso to clause (iii) plus (y) the amounts that are
required to be set aside pursuant to clause (i), the proviso to clause (ii)
and clause (iii) plus (z) the Seller’s Share of the Servicing Fee accrued and unpaid
through such day and all reasonable and appropriate out-of-pocket costs and expenses of the
Servicer for servicing, collecting and administering the Pool Receivables.

     (c) The Servicer shall, in accordance with the priorities set forth in Section 1.4(d),
below, deposit into each applicable Purchaser Agent’s account (or such other account designated by
such applicable Purchaser or its Purchaser Agent), on each Settlement Date (for any Portion

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of Investment), Collections held for each Purchaser with respect to such Purchaser’s
Portion(s) of Capital pursuant to clause (b)(i) or (f), plus the amount of
Collections then held for the related Purchasers pursuant to clauses (b)(ii) and
(iii) of Section 1.4; provided, that if Cooper Tire or an Affiliate thereof
is the Servicer, such day is not a Termination Day and the Administrator has not notified Cooper
Tire (or such Affiliate) that such right is revoked, Cooper Tire (or such Affiliate) may retain the
portion of the Collections set aside pursuant to clause (b)(i) that represents the
aggregate of each Purchasers’ Share of the Servicing Fee.

     (d) The Servicer shall distribute the amounts described (and at the times set forth) in
Section 1.4(c), as follows:

     (i) if such distribution occurs on a day that is not a Termination Day and the
Purchased Interest does not exceed 100%, first to each Purchaser Agent ratably
according to the Discount accrued during such Yield Period (for the benefit of the relevant
Purchasers within such Purchaser Agent’s Purchaser Group) in payment in full of all accrued
Discount and Fees (other than Servicing Fees) with respect to each Portion of Capital
maintained by such Purchasers; it being understood that each
Purchaser Agent shall distribute such amounts to the Purchasers within its Purchaser Group
ratably according to Discount, and second, if the Servicer has set aside amounts in
respect of the Servicing Fee pursuant to clause (b)(i) and has not retained such
amounts pursuant to clause (c), to the Servicer’s own account (payable in arrears on
each Settlement Date) in payment in full of the aggregate of the Purchasers’ Share of
accrued Servicing Fees so set aside, and

     (ii) if such distribution occurs on a Termination Day or on a day when the Purchased
Interest exceeds 100%, first if Cooper Tire or an Affiliate thereof is not the
Servicer, to the Servicer’s own account in payment in full of the Purchasers’ Share of all
accrued Servicing Fees, second to each Purchaser Agent ratably (based on the
aggregate accrued and unpaid Discount and Fees (other than Servicing Fees) payable to all
Purchasers at such time) (for the benefit of the relevant Purchasers within such Purchaser
Agent’s Purchaser Group) in payment in full of all accrued Discount with respect to each
Portion of Capital funded or maintained by the Purchasers within such Purchaser Agent’s
Purchaser Group, third to each Purchaser Agent ratably according to the aggregate of
the Capital of each Purchaser in each such Purchaser Agent’s Purchaser Group (for the
benefit of the relevant Purchasers within such Purchaser Agent’s Purchaser Group) in payment
in full of each Purchaser’s Capital (or, if such day is not a Termination Day, the amount
necessary to reduce the Purchased Interest to 100%) (determined as if such Collections had
been applied to reduce the Aggregate Capital); it being understood
that each Purchaser Agent shall distribute the amounts described in the first and second
clauses of this Section 1.4(d)(ii) to the Purchasers within its Purchaser Group
ratably according to Discount and Capital, respectively, fourth, to the LC
Collateral Account for the benefit of the LC Bank and the LC Participants, the amount
necessary to cash collateralize the LC Participation Amount until the amount of cash
collateral held in such LC Collateral Account equals 100% of the aggregate outstanding
amount of the LC Participation Amount, fifth, if the Aggregate Capital and accrued
Aggregate Discount with respect to each Portion of Capital for all Purchaser Groups have
been reduced to zero, and the Purchasers’ Share of all accrued Servicing Fees payable to the
Servicer (if

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other than Cooper Tire or an Affiliate thereof) have been paid in full, to each
Purchaser Group ratably, based on the amounts payable to each (for the benefit of the
Purchasers within such Purchaser Group), the Administrator and any other Indemnified Party
or Affected Person in payment in full of any other amounts owed thereto by the Seller or
Servicer hereunder and, sixth, to the Servicer’s own account (if the Servicer is
Cooper Tire or an Affiliate thereof) in payment in full of the aggregate of the Purchasers’
Share of all accrued Servicing Fees.

After the Aggregate Capital, Aggregate Discount, fees payable pursuant to each Purchaser Group Fee
Letter and Servicing Fees with respect to the Purchased Interest, and any other amounts payable by
the Seller and the Servicer to each Purchaser Group, the Administrator or any other Indemnified
Party or Affected Person hereunder, have been paid in full, and (on and after a Termination Day)
after an amount equal to 100% of the LC Participation Amount has been deposited in the LC
Collateral Account, all additional Collections with respect to the Purchased Interest shall be paid
to the Seller for its own account.

     (e) For the purposes of this Section 1.4:

     (i) if on any day the Outstanding Balance of any Pool Receivable is reduced or adjusted
as a result of any defective, rejected, returned, repossessed or foreclosed goods or
services, or any revision, cancellation, allowance, rebate, discount or other adjustment
made by the Seller or any Affiliate of the Seller, or the Servicer or any Affiliate of the
Servicer, or any setoff or dispute between the Seller or any Affiliate of the Seller, or the
Servicer or any Affiliate of the Servicer and an Obligor, the Seller shall be deemed to have
received on such day a Collection of such Pool Receivable in the amount of such reduction or
adjustment and shall immediately pay any and all such amounts in respect thereof to a
Lock-Box Account for the benefit of the Purchasers and their assigns and for application
pursuant to Section 1.4;

     (ii) if on any day any of the representations or warranties in Sections 1(j) or
3(a) of Exhibit III is not true with respect to any Pool Receivable, the
Seller shall be deemed to have received on such day a Collection of such Pool Receivable in
full and shall immediately pay any and all such amounts to a Lock-Box Account (or as
otherwise directed by the Administrator at such time) for the benefit of the Purchasers and
their assigns and for application pursuant to this Section 1.4 (Collections deemed
to have been received pursuant to clause (i) or (ii) of this paragraph
(e) are hereinafter sometimes referred to as “Deemed Collections”);

     (iii) except as otherwise required by applicable law or the relevant Contract, all
Collections received from an Obligor of any Receivable shall be applied to the Receivables
of such Obligor in the order of the age of such Receivables, starting with the oldest such
Receivable, unless such Obligor designates in writing its payment for application to
specific Receivables; and

     (iv) if and to the extent the Administrator, any Purchaser Agent or any Purchaser shall
be required for any reason to pay over to an Obligor (or any trustee, receiver, custodian or
similar official in any Insolvency Proceeding) any amount received

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by it hereunder, such amount shall be deemed not to have been so received by such
Person but rather to have been retained by the Seller and, accordingly, such Person shall
have a claim against the Seller for such amount, payable when and to the extent that any
distribution from or on behalf of such Obligor is made in respect thereof.

     (f) If at any time the Seller shall wish to cause the reduction of Aggregate Capital (but not
to commence the liquidation, or reduction to zero, of the entire Aggregate Capital) the Seller may
do so as follows:

     (i) the Seller shall give the Administrator, each Purchaser Agent and the Servicer
written notice in the form of Annex E (each, a “Paydown Notice”) (A) at
least two Business Days prior to the date of such reduction for any reduction of the
Aggregate Capital less than or equal to $25,000,000 (or such greater amount as agreed to by
the Administrator and the Majority Purchaser Agents) and (B) at least five Business Days
prior to the date of such reduction for any reduction of the Aggregate Capital greater than
$25,000,000, and each such Paydown Notice shall include, among other things, the amount of
such proposed reduction and the proposed date on which such reduction will commence;

     (ii) on the proposed date of commencement of such reduction and on each day thereafter,
the Servicer shall cause Collections not to be reinvested until the amount thereof not so
reinvested shall equal the desired amount of reduction; and

     (iii) the Servicer shall hold such Collections in trust for the benefit of each
Purchaser ratably according to its Capital, for payment to each such Purchaser (or its
related Purchaser Agent for the benefit of such Purchaser) on the next Settlement Date (or
such other date as agreed to by the Administrator) with respect to any Portions of Capital
maintained by such Purchaser immediately following the related current Yield Period, and the
Aggregate Capital (together with the Capital of any related Purchaser) shall be deemed
reduced in the amount to be paid to such Purchaser (or its related Purchaser Agent for the
benefit of such Purchaser) only when in fact finally so paid;

provided, that:

     (A) the amount of any such reduction shall be not less than $100,000 for each Purchaser
Group and shall be an integral multiple of $100,000, and the entire Aggregate Capital after
giving effect to such reduction shall be not less than $20,000,000; and

     (B) with respect to any Portion of Capital, the Seller shall choose a reduction amount,
and the date of commencement thereof, so that to the extent practicable such reduction shall
commence and conclude in the same Yield Period.

     Section 1.5 Fees. The Seller shall pay to each Purchaser Agent for the benefit of the
Purchasers and Liquidity Providers in the related Purchaser Group in accordance with the provisions
set forth in Section 1.4(d) certain fees in the amounts and on the dates set forth in one
or more fee letter agreements, dated the Closing Date (or dated the date any such Purchaser and
member of its related Purchaser Group become a party hereto pursuant to an Assumption Agreement, a
Transfer Supplement or otherwise), among the Servicer, the Seller, and the

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applicable Purchaser Agent, respectively (as any such fee letter agreement may be amended,
restated, supplemented or otherwise modified from time to time, each, a “Purchaser Group Fee
Letter”) and each of the Purchaser Group Fee Letters may be referred to collectively as, the
“Fee Letters”).

     Section 1.6 Payments and Computations, Etc.

     (a) All amounts to be paid or deposited by the Seller or the Servicer hereunder shall be made
without reduction for offset or counterclaim and shall be paid or deposited no later than 2:00 p.m.
(New York City Time) on the day when due in same day funds to the account for each Purchaser
maintained by the applicable Purchaser Agent (or such other account as may be designated from time
to time by such Purchaser Agent to the Seller and the Servicer). All amounts received after 2:00
p.m. (New York City Time) will be deemed to have been received on the next Business Day.

     (b) The Seller or the Servicer, as the case may be, shall, to the extent permitted by law, pay
interest on any amount not paid or deposited by the Seller or the Servicer, as the case may be,
when due hereunder, at an interest rate equal to 2.0% per annum above the Base Rate, payable on
demand.

     (c) All computations of interest under clause (b) and all computations of Discount,
Fees and other amounts hereunder shall be made on the basis of a year of 360 (or 365 or 366, as
applicable, with respect to Discount or other amounts calculated by reference to the Base Rate)
days for the actual number of days elapsed. Whenever any payment or deposit to be made hereunder
shall be due on a day other than a Business Day, such payment or deposit shall be made on the next
Business Day and such extension of time shall be included in the computation of such payment or
deposit.

     Section 1.7 Increased Costs. (a) If, after the date hereof, the Administrator, any
Purchaser, Purchaser Agent, Liquidity Provider or Program Support Provider or any of their
respective Affiliates (each an “Affected Person”) determines that the existence of or
compliance with: (i) any law, rule or regulation (including any applicable law, rule or regulation
regarding capital adequacy) or any change therein or in the interpretation or application thereof,
or (ii) any request, guideline or directive from Financial Accounting Standards Board
(“FASB”), or any central bank or other Governmental Authority (whether or not having the
force of law) affects or would affect the amount of capital required or expected to be maintained
by such Affected Person, and such Affected Person determines that the amount of such capital is
increased by or based upon the existence of any commitment to make purchases of (or otherwise to
maintain the investment in) Pool Receivables or issue any Letter of Credit or any related liquidity
facility, credit enhancement facility and other commitments of the same type, then, upon demand by
such Affected Person (with a copy to the Administrator), the Seller shall promptly pay such
Affected Person, from time to time as specified by such Affected Person, additional amounts
sufficient to compensate such Affected Person in the light of such circumstances, to the extent
that such Affected Person determines such increase in capital to be allocable to the existence of
any of such commitments. For the avoidance of doubt, if, after the date hereof, the issuance of
FASB Interpretation No. 46, or any other change in accounting standards or the issuance of any
other pronouncement, release or interpretation, causes or requires the consolidation of all or a
portion

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of the assets and liabilities of any Conduit Purchaser or the Seller with the assets and
liabilities of such Affected Person, such event shall constitute a circumstance on which such
Person may base a claim for reimbursement under this Section 1.7.

     (b) If, after the date hereof, due to either: (i) the introduction of or any change in or in
the interpretation of any law or regulation or (ii) compliance with any guideline or request from
any central bank or other Governmental Authority (whether or not having the force of law), there
shall be any increase in the cost to any Affected Person of agreeing to purchase or purchasing, or
maintaining the ownership of, the Purchased Interest (or its portion thereof) in respect of which
Discount is computed by reference to the Euro-Rate, then, upon demand by such Affected Person, the
Seller shall promptly pay to such Affected Person, from time to time as specified by such Affected
Person, additional amounts sufficient to compensate such Affected Person for such increased costs.

     Section 1.8 Requirements of Law. If, after the date hereof, any Affected Person
determines that the existence of or compliance with: (x) any law or regulation or any change
therein or in the interpretation or application thereof, or (y) any request, guideline or directive
from any central bank or other Governmental Authority (whether or not having the force of law):

     (a) does or shall subject such Affected Person to any tax of any kind whatsoever with respect
to this Agreement, any increase in the Purchased Interest (or its portion thereof) or in the amount
of Capital relating thereto, or does or shall change the basis of taxation of payments to such
Affected Person on account of Collections, Discount or any other amounts payable hereunder, or

     (b) does or shall impose, modify or hold applicable any reserve, special deposit, compulsory
loan or similar requirement against assets held by, or deposits or other liabilities in or for the
account of, purchases, advances or loans by, or other credit extended by, or any other acquisition
of funds by, any office of such Affected Person that are not otherwise included in the
determination of the Euro-Rate hereunder,

and the result of any of the foregoing is: (A) to increase the cost to such Affected Person of
agreeing to purchase or purchasing or maintaining the ownership of undivided percentage ownership
interests with regard to, or issuing any Letter of Credit in respect of, the Purchased Interest (or
interests therein) or any Portion of Capital, or (B) to reduce any amount receivable hereunder
(whether directly or indirectly), then, in any such case, upon demand by such Affected Person, the
Seller shall promptly pay to such Affected Person additional amounts necessary to compensate such
Affected Person for such additional cost or reduced amount receivable. All such amounts shall be
payable as incurred.

     Section 1.9 Funding Losses. The Seller shall compensate each Affected Person, upon
written request by such Person for all losses, expenses and liabilities (including any interest
paid by such Affected Person to lenders of funds borrowed by it to fund or maintain any Portion of
Capital hereunder at an interest rate determined by reference to the Euro-Rate and any loss
sustained by such Person in connection with the re-employment of such funds), which such Affected
Person may sustain with respect to funding or maintaining such Portion of Capital at the Euro-Rate
if, for any reason, at the applicable request by the Seller to fund or maintain such

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Portion of Capital at an interest rate determined by reference to the Euro-Rate does not occur
on a date specified therefor.

     Section 1.10 Taxes. The Seller agrees that:

     Any and all payments by the Seller under this Agreement and any other Transaction
Document shall be made free and clear of and without deduction for any and all current or
future taxes, stamp or other taxes, levies, imposts, deductions, charges or withholdings,
and all liabilities with respect thereto (all such taxes, levies, imposts, deductions,
charges, withholdings and liabilities being hereinafter referred to as “Taxes”). If
the Seller shall be required by law to deduct any Taxes from or in respect of any sum
payable hereunder to any Purchaser, any Liquidity Provider, Program Support Provider or the
Administrator, then the sum payable shall be increased by the amount necessary to yield to
such Person (after payment of all Taxes) an amount equal to the sum it would have received
had no such deductions been made.

     Whenever any Taxes are payable by the Seller, as promptly as possible thereafter, the
Seller shall send to the Administrator for its own account or for the account of any
Purchaser or any Liquidity Provider or other Program Support Provider, as the case may be, a
certified copy of an original official receipt showing payment thereof or such other
evidence of such payment as may be available to the Seller and acceptable to the taxing
authorities having jurisdiction over such Person. If the Seller fails to pay any Taxes when
due to the appropriate taxing authority or fails to remit to the Administrator the required
receipts or other required documentary evidence, the Seller shall indemnify the
Administrator and/or any other Affected Person, as applicable, for any incremental taxes,
interest or penalties that may become payable by such party as a result of any such failure.

     Section 1.11 Inability to Determine Euro-Rate. (a) If the Administrator (or any
Purchaser Agent) determines before the first day of any Yield Period (which determination shall be
final and conclusive) that, by reason of circumstances affecting the interbank eurodollar market
generally (i) deposits in dollars (in the relevant amounts for such Yield Period) are not being
offered to banks in the interbank eurodollar market for such Yield Period, (ii) adequate means do
not exist for ascertaining the Euro-Rate for such Yield Period or (iii) the Euro-Rate does not
accurately reflect the cost to any Purchaser (as determined by the related Purchaser or the
applicable Purchaser Agent) of maintaining any Portion of Capital during such Yield Period, then
the Administrator shall give notice thereof to the Seller. Thereafter, until the Administrator or
such Purchaser Agent notifies the Seller that the circumstances giving rise to such suspension no
longer exist, (a) no Portion of Capital shall be funded at the Yield Rate determined by reference
to the Euro-Rate and (b) the Discount for any outstanding Portions of Capital then funded at the
Yield Rate determined by reference to the Euro-Rate shall, on the last day of the then current
Yield Period, be converted to the Yield Rate determined by reference to the Base Rate.

     (b) If, on or before the first day of any Yield Period, the Administrator shall have been
notified by any Affected Person that such Affected Person has determined (which determination shall
be final and conclusive) that any enactment, promulgation or adoption of or

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any change in any applicable law, rule or regulation, or any change in the interpretation or
administration thereof by a governmental authority, central bank or comparable agency charged with
the interpretation or administration thereof, or compliance by such Affected Person with any
guideline, request or directive (whether or not having the force of law) of any such authority,
central bank or comparable agency shall make it unlawful or impossible for such Affected Person to
fund or maintain any Portion of Capital at the Yield Rate and based upon the Euro-Rate, the
Administrator shall notify the Seller thereof. Upon receipt of such notice, until the Administrator
notifies the Seller that the circumstances giving rise to such determination no longer apply, (a)
no Portion of Capital shall be funded at the Yield Rate determined by reference to the Euro-Rate
and (b) the Discount for any outstanding Portions of Capital then funded at the Yield Rate
determined by reference to the Euro-Rate shall be converted to the Yield Rate determined by
reference to the Base Rate either (i) on the last day of the then current Yield Period if such
Affected Person may lawfully continue to maintain such Portion of Capital at the Yield Rate
determined by reference to the Euro-Rate to such day, or (ii) immediately, if such Affected Person
may not lawfully continue to maintain such Portion of Capital at the Yield Rate determined by
reference to the Euro-Rate to such day.

     Section 1.12 Letters of Credit.

     On the terms and subject to the conditions hereof, the LC Bank shall issue or cause the
issuance of Letters of Credit on behalf of Seller (and, if applicable, on behalf of, or for the
account of, any Originator in favor of such beneficiaries as such Originator may elect); provided,
however, that the LC Bank will not be required to issue or cause to be issued any Letters of Credit
to the extent that after giving effect thereto the issuance of such Letters of Credit would then
cause (a) the sum of (i) the Aggregate Capital plus (ii) the LC Participation Amount to exceed the
Purchase Limit or (b) the LC Participation Amount to exceed the aggregate of the Commitments of the
LC Bank and the LC Participants. All amounts drawn upon Letters of Credit shall accrue Discount.
Letters of Credit that have not been drawn upon shall not accrue Discount.

     Section 1.13 Issuance of Letters of Credit.

     (a) The Seller may request the LC Bank, upon two (2) Business Days’ prior written notice
submitted on or before 11:00 a.m., Pennsylvania time, to issue a Letter of Credit by delivering to
the Administrator, the LC Bank’s form of Letter of Credit Application (the “Letter of Credit
Application”), substantially in the form of Annex F attached hereto completed to the satisfaction
of the Administrator and the LC Bank; and, such other certificates, documents and other papers and
information as the Administrator may reasonably request. The Seller also has the right to give
instructions and make agreements with respect to any Letter of Credit Application and the
disposition of documents, and to agree with the Administrator upon any amendment, extension or
renewal of any Letter of Credit.

     (b) Each Letter of Credit shall, among other things, (i) provide for the payment of sight
drafts or other written demands for payment when presented for honor thereunder in accordance with
the terms thereof and when accompanied by the documents described therein, (ii) have an expiry date
not later than twelve (12) months after such Letter of Credit’s date of issuance and (iii) provide
that amounts drawn with respect to such Letter of Credit may not be redrawn. Each Letter of Credit
shall be subject either to the Uniform Customs and Practice for

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Documentary Credits (1993 Revision), International Chamber of Commerce Publication No. 500 or
International Chamber of Commerce Publication No. 600, based on which publication is in effect at
the time that such Letter of Credit is issued, and any amendments or revisions thereof adhered to
by the LC Bank (“UCP Rules”) or the International Standby Practices (ISP98-International Chamber of
Commerce Publication Number 590), and any amendments or revisions thereof adhered to by the LC Bank
(the “ISP98 Rules”), as determined by the LC Bank.

     (c) The Administrator shall promptly notify the LC Bank , at its address for notices
hereunder, and each LC Participant of the request by the Seller for a Letter of Credit hereunder,
and shall provide the LC Bank with the Letter of Credit Application delivered to the Administrator
by the Seller pursuant to paragraph (a), above, by the close of business on the day received or if
received on a day that is not a Business Day or on any Business Day after 11:00 a.m. Pennsylvania
time on such day, on the next Business Day.

     Section 1.14 Requirements For Issuance of Letters of Credit.

     The Seller shall authorize and direct the LC Bank to name the Seller or any Originator as the
“Applicant” or “Account Party” of each Letter of Credit.

     Section 1.15 Disbursements, Reimbursement.

     (a) Immediately upon the issuance of each Letter of Credit, each LC Participant shall be
deemed to, and hereby irrevocably and unconditionally agrees to, purchase from the LC Bank a
participation in such Letter of Credit and each drawing thereunder in an amount equal to such LC
Participant’s Pro Rata Share of the face amount of such Letter of Credit and the amount of such
drawing, respectively.

     (b) In the event of any request for a drawing under a Letter of Credit by the beneficiary or
transferee thereof, the LC Bank will promptly notify the Administrator and the Seller of such
request. Provided that it shall have received such notice, the Seller shall reimburse (such
obligation to reimburse the LC Bank shall sometimes be referred to as a “Reimbursement Obligation”)
the LC Bank prior to 12:00 p.m., Pennsylvania time on each date that an amount is paid by the LC
Bank under any Letter of Credit (each such date, a “Drawing Date”) in an amount equal to the amount
so paid by the LC Bank. In the event the Seller fails to reimburse the LC Bank for the full amount
of any drawing under any Letter of Credit by 12:00 p.m., Pennsylvania time, on the Drawing Date,
the LC Bank will promptly notify each LC Participant thereof, and the Seller shall be deemed to
have requested that a Funded Purchase be made by the Purchasers in the Purchaser Group for the LC
Bank and the LC Participants to be disbursed on the Drawing Date under such Letter of Credit in
accordance with Section 1.1(b). Any notice given by the LC Bank pursuant to this Section may be
oral if immediately confirmed in writing; provided that the lack of such an immediate confirmation
shall not affect the conclusiveness or binding effect of such notice.

     (c) Each LC Participant shall upon any notice pursuant to subclause (b) above make available
to the LC Bank an amount in immediately available funds equal to its Pro Rata Share of the amount
of the drawing. If any LC Participant so notified fails to make available to the LC Bank the
amount of such LC Participant’s Pro Rata Share of such amount by no later than 2:00 p.m.,
Pennsylvania time on the Drawing Date, then interest shall accrue on such LC Participant’s

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obligation to make such payment, from the Drawing Date to the date on which such LC
Participant makes such payment (i) at a rate per annum equal to the Federal Funds Rate during the
first three days following the Drawing Date and (ii) at a rate per annum equal to the rate
applicable to Capital on and after the fourth day following the Drawing Date. The LC Bank will
promptly give notice of the occurrence of the Drawing Date, but failure of the LC Bank to give any
such notice on the Drawing Date or in sufficient time to enable any LC Participant to effect such
payment on such date shall not relieve such LC Participant from its obligation under this subclause
(c), provided that such LC Participant shall not be obligated to pay interest as provided in
subclauses (i) and (ii) above until and commencing from the date of receipt of notice from the LC
Bank or the Administrator of a drawing. Each LC Participant’s Commitment shall continue until the
last to occur of any of the following events: (A) the LC Bank ceases to be obligated to issue or
cause to be issued Letters of Credit hereunder; (B) no Letter of Credit issued hereunder remains
outstanding and uncancelled or (C) all Persons (other than the Seller) have been fully reimbursed
for all payments made under or relating to Letters of Credit.

     Section 1.16 Repayment of Participation Advances.

     (a) Upon (and only upon) receipt by the LC Bank for its account of immediately available funds
from or for the account of the Seller in reimbursement of any payment made by the LC Bank under a
Letter of Credit with respect to which any LC Participant has made a participation advance to the
LC Bank, the LC Bank (or the Administrator on its behalf) will pay to each LC Participant, ratably
(based on the outstanding drawn amounts funded by each such LC Participant in respect of such
Letter of Credit), in the same funds as those received by the LC Bank; it being
understood, that the LC Bank shall retain a ratable amount of such funds that were not the
subject of any payment in respect of such Letter of Credit by any LC Participant.

     (b) If the LC Bank is required at any time to return to the Seller, or to a trustee, receiver,
liquidator, custodian, or any official in any insolvency proceeding, any portion of the payments
made by the Seller to the LC Bank pursuant to this Agreement in reimbursement of a payment made
under the Letter of Credit or interest or fee thereon, each LC Participant shall, on demand of the
LC Bank, forthwith return to the LC Bank the amount of its Pro Rata Share of any amounts so
returned by the LC Bank plus interest at the Federal Funds Rate, from the date the payment was
first made to such LC Participant through, but not including, the date the payment is returned by
such LC Participant.

     Section 1.17 Documentation.

     Each of the Seller and LC Bank agrees to be bound by (i) the terms of the Letter of Credit
Application, (ii) by the LC Bank’s interpretations of any Letter of Credit issued for the Seller,
(iii) by the LC Bank’s written regulations and customary practices relating to letters of credit,
though the LC Bank’s interpretation of such regulations and practices may be different from the
Seller’s own and (iv) as applicable, UCP Rules and ISP98 Rules. In the event of a conflict between
the Letter of Credit Application and this Agreement, this Agreement shall govern. It is understood
and agreed that, except in the case of gross negligence or willful misconduct by the LC Bank, the
LC Bank shall not be liable for any error, negligence and/or mistakes, whether of omission or
commission, in following the Seller’s instructions or those contained in the Letters of Credit or
any modifications, amendments or supplements thereto.

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     Section 1.18 Determination to Honor Drawing Request.

     (a) In determining whether to honor any request for drawing under any Letter of Credit by the
beneficiary thereof, the LC Bank shall be responsible only to determine that the documents and
certificates required to be delivered under such Letter of Credit have been delivered and that they
comply on their face with the requirements of such Letter of Credit and that any other drawing
condition appearing on the face of such Letter of Credit has been satisfied in the manner so set
forth.

     Section 1.19 Nature of Participation and Reimbursement Obligations.

     Each LC Participant’s obligation in accordance with this Agreement to make participation
advances as a result of a drawing under a Letter of Credit, and the obligations of the Seller to
reimburse the LC Bank upon a draw under a Letter of Credit, shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of this Article I under
all circumstances, including the following circumstances:

     (a) any set-off, counterclaim, recoupment, defense or other right which such LC Participant
may have against the LC Bank, the Administrator, the Purchasers, the Purchaser Agents, the Seller
or any other Person for any reason whatsoever;

     (b) the failure of the Seller or any other Person to comply with the conditions set forth in
this Agreement for the making of a purchase, reinvestments, requests for Letters of Credit or
otherwise, it being acknowledged that such conditions are not required for the making of
participation advances hereunder;

     (c) any lack of validity or enforceability of any Letter of Credit or any set-off,
counterclaim, recoupment, defense or other right which Seller or any Originator on behalf of which
a Letter of Credit has been issued may have against the LC Bank, the Administrator, any Purchaser,
or any other Person for any reason whatsoever;

     (d) any claim of breach of warranty that might be made by the Seller, the LC Bank or any LC
Participant against the beneficiary of a Letter of Credit, or the existence of any claim, set-off,
defense or other right which the Seller, the LC Bank or any LC Participant may have at any time
against a beneficiary, any successor beneficiary or any transferee of any Letter of Credit or the
proceeds thereof (or any Persons for whom any such transferee may be acting), the LC Bank, any LC
Participant, the Purchasers or Purchaser Agents or any other Person, whether in connection with
this Agreement, the transactions contemplated herein or any unrelated transaction (including any
underlying transaction between the Seller or any Subsidiaries of the Seller or any Affiliates of
the Seller and the beneficiary for which any Letter of Credit was procured);

     (e) the lack of power or authority of any signer of, or lack of validity, sufficiency,
accuracy, enforceability or genuineness of, any draft, demand, instrument, certificate or other
document presented under any Letter of Credit, or any such draft, demand, instrument, certificate
or other document proving to be forged, fraudulent, invalid, defective or insufficient in any
respect (other than any defect or insufficiency appearing on the face of such document) or any

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statement therein being untrue or inaccurate in any respect, even if the Administrator or the
LC Bank has been notified thereof;

     (f) payment by the LC Bank under any Letter of Credit against presentation of a demand, draft
or certificate or other document which does not comply with the terms of such Letter of Credit
other than as a result of the gross negligence or willful misconduct of the LC Bank;

     (g) the solvency of, or any acts or omissions by, any beneficiary of any Letter of Credit, or
any other Person having a role in any transaction or obligation relating to a Letter of Credit, or
the existence, nature, quality, quantity, condition, value or other characteristic of any property
or services relating to a Letter of Credit;

     (h) any failure by the LC Bank or any of the LC Bank’s Affiliates to issue any Letter of
Credit in the form requested by the Seller, unless the LC Bank has received written notice from the
Seller of such failure within three Business Days after the LC Bank shall have furnished the Seller
a copy of such Letter of Credit and such error is material and no drawing has been made thereon
prior to receipt of such notice;

     (i) any Material Adverse Effect on the Seller, any Originator or any Affiliates thereof;

     (j) any breach of this Agreement or any Transaction Document by any party thereto;

     (k) the occurrence or continuance of an Insolvency Proceeding with respect to the Seller, any
Originator or any Affiliate thereof;

     (l) the fact that a Termination Event or an Unmatured Termination Event shall have occurred
and be continuing;

     (m) the fact that this Agreement or the obligations of Seller or Servicer hereunder shall have
been terminated; and

     (n) any other circumstance or happening whatsoever, whether or not similar to any of the
foregoing.

     Section 1.20 Indemnity.

     In addition to other amounts payable hereunder, the Seller hereby agrees to protect,
indemnify, pay and save harmless the Administrator, the LC Bank, each LC Participant and any of the
LC Bank’s Affiliates that have issued a Letter of Credit from and against any and all claims,
demands, liabilities, damages, taxes, penalties, interest, judgments, losses, costs, charges and
expenses (including Attorney Costs) which the Administrator, the LC Bank, any LC Participant or any
of their respective Affiliates may incur or be subject to as a consequence, direct or indirect, of
the issuance of any Letter of Credit, other than as a result of (a) the gross negligence or willful
misconduct of the party to be indemnified as determined by a final judgment of a court of competent
jurisdiction or (b) the wrongful dishonor by the LC Bank of a proper demand for payment made under
any Letter of Credit, except if such dishonor resulted

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from any act or omission, whether rightful or wrongful, of any present or future de jure or de
facto Governmental Authority (all such acts or omissions herein called “Governmental Acts”).

     Section 1.21 Liability for Acts and Omissions.

     As between the Seller, on the one hand, and the Administrator, the LC Bank, the LC
Participants, the Purchasers and the Purchaser Agents, on the other, the Seller assumes all risks
of the acts and omissions of, or misuse of any Letter of Credit by, the respective beneficiaries of
such Letter of Credit. In furtherance and not in limitation of the respective foregoing, none of
the Administrator, the LC Bank, the LC Participants, the Purchasers or the Purchaser Agents shall
be responsible for: (i) the form, validity, sufficiency, accuracy, genuineness or legal effect of
any document submitted by any party in connection with the application for an issuance of any such
Letter of Credit, even if it should in fact prove to be in any or all respects invalid,
insufficient, inaccurate, fraudulent or forged; (ii) the validity or sufficiency of any instrument
transferring or assigning or purporting to transfer or assign any such Letter of Credit or the
rights or benefits thereunder or proceeds thereof, in whole or in part, which may prove to be
invalid or ineffective for any reason; (iii) the failure of the beneficiary of any such Letter of
Credit, or any other party to which such Letter of Credit may be transferred, to comply fully with
any conditions required in order to draw upon such Letter of Credit or any other claim of the
Seller against any beneficiary of such Letter of Credit, or any such transferee, or any dispute
between or among the Seller and any beneficiary of any Letter of Credit or any such transferee;
(iv) errors, omissions, interruptions or delays in transmission or delivery of any messages, by
mail, cable, telegraph, telex or otherwise, whether or not they be in cipher; (v) errors in
interpretation of technical terms; (vi) any loss or delay in the transmission or otherwise of any
document required in order to make a drawing under any such Letter of Credit or of the proceeds
thereof; (vii) the misapplication by the beneficiary of any such Letter of Credit of the proceeds
of any drawing under such Letter of Credit; or (viii) any consequences arising from causes beyond
the control of the Administrator, the LC Bank, the LC Participants, the Purchasers and the
Purchaser Agents, including any Governmental Acts, and none of the above shall affect or impair, or
prevent the vesting of, any of the LC Bank’s rights or powers hereunder. Nothing in the preceding
sentence shall relieve the LC Bank from liability for its gross negligence or willful misconduct,
as determined by a final non-appealable judgment of a court of competent jurisdiction, in
connection with actions or omissions described in such clauses (i) through (viii) of such sentence.
In no event shall the Administrator, the LC Bank, the LC Participants, the Purchasers or the
Purchaser Agents or their respective Affiliates, be liable to the Seller or any other Person for
any indirect, consequential, incidental, punitive, exemplary or special damages or expenses
(including without limitation Attorneys’ Costs), or for any damages resulting from any change in
the value of any property relating to a Letter of Credit.

     Without limiting the generality of the foregoing, the Administrator, the LC Bank, the LC
Participants, the Purchasers and the Purchaser Agents and each of its Affiliates (i) may rely on
any written communication believed in good faith by such Person to have been authorized or given by
or on behalf of the applicant for a Letter of Credit; (ii) may honor any presentation if the
documents presented appear on their face to comply with the terms and conditions of the relevant
Letter of Credit; (iii) may honor a previously dishonored presentation under a Letter of Credit,
whether such dishonor was pursuant to a court order, to settle or compromise any claim of wrongful
dishonor, or otherwise, and shall be entitled to reimbursement to the same extent as if such
presentation had initially been honored, together with any interest paid by the LC Bank or

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its Affiliates; (iv) may honor any drawing that is payable upon presentation of a statement
advising negotiation or payment, upon receipt of such statement (even if such statement indicates
that a draft or other document is being delivered separately), and shall not be liable for any
failure of any such draft or other document to arrive, or to conform in any way with the relevant
Letter of Credit; (v) may pay any paying or negotiating bank claiming that it rightfully honored
under the laws or practices of the place where such bank is located; and (vi) may settle or adjust
any claim or demand made on the Administrator, the LC Bank, the LC Participants, the Purchasers or
the Purchaser Agents or their respective Affiliates, in any way related to any order issued at the
applicant’s request to an air carrier, a letter of guarantee or of indemnity issued to a carrier or
any similar document (each an “Order”) and may honor any drawing in connection with any Letter of
Credit that is the subject of such Order, notwithstanding that any drafts or other documents
presented in connection with such Letter of Credit fail to conform in any way with such Letter of
Credit.

     In furtherance and extension and not in limitation of the specific provisions set forth above,
any action taken or omitted by the LC Bank under or in connection with any Letter of Credit issued
by it or any documents and certificates delivered thereunder, if taken or omitted in good faith and
without gross negligence or willful misconduct, as determined by a final non-appealable judgment of
a court of competent jurisdiction, shall not put the LC Bank under any resulting liability to the
Seller, any LC Participant or any other Person.

     Section 1.22 Extension of Termination Date. For each of the first three years after
the Closing Date, the Seller may request the extension of the Facility Termination Date for an
additional three hundred and sixty-four (364) days from the Facility Termination Date then in
effect by providing written notice to the Administrator and each Purchaser Agent; provided
such request is made not more than 120 days prior to, and not less than 90 days prior to, the then
current Facility Termination Date. In the event that the Purchasers are all agreeable to such
extension, the Administrator shall so notify the Seller in writing (it being understood
that the Purchasers may accept or decline such a request in their sole discretion and on such terms
as they may elect) not less than 30 days prior to the then current Facility Termination Date and
the Seller, the Servicer, the Administrator, the Purchaser Agents and the Purchasers shall enter
into such documents as the Purchasers may deem necessary or appropriate to reflect such extension,
and all reasonable costs and expenses incurred by the Purchasers, the Administrator and the
Purchaser Agents in connection therewith (including reasonable Attorneys’ Costs) shall be paid by
the Seller. In the event any Purchaser declines the request for such extension, such Purchaser (or
the applicable Purchaser Agent on its behalf) shall so notify the Administrator and the
Administrator shall so notify the Seller of such determination; provided, however,
that the failure of the Administrator to notify the Seller of the determination to decline such
extension shall not affect the understanding and agreement that the applicable Purchasers shall be
deemed to have refused to grant the requested extension in the event the Administrator fails to
affirmatively notify the Seller, in writing, of their agreement to accept the requested extension.

ARTICLE II

REPRESENTATIONS AND WARRANTIES; COVENANTS;

TERMINATION EVENTS

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     Section 2.1 Representations and Warranties; Covenants. Each of the Seller and
the Servicer hereby makes the representations and warranties, and hereby agrees to perform and
observe the covenants, applicable to it set forth in Exhibits III and IV,
respectively.

     Section 2.2 Termination Events. If any of the Termination Events set forth in
Exhibit V shall occur, the Administrator may (with the consent of the Majority Purchaser
Agents) or shall (at the direction of the Majority Purchaser Agents), by notice to the Seller,
declare the Facility Termination Date to have occurred (in which case the Facility Termination Date
shall be deemed to have occurred); provided, that automatically upon the occurrence of any
event (without any requirement for the passage of time or the giving of notice) described in
paragraph (f) of Exhibit V, the Facility Termination Date shall occur. Upon any
such declaration, occurrence or deemed occurrence of the Facility Termination Date, the
Administrator, each Purchaser Agent and each Purchaser shall have, in addition to the rights and
remedies that they may have under this Agreement, all other rights and remedies provided after
default under the UCC and under other applicable law, which rights and remedies shall be
cumulative.

ARTICLE III

INDEMNIFICATION

     Section 3.1 Indemnities by the Seller. Without limiting any other rights any such
Person may have hereunder or under applicable law, the Seller hereby indemnifies and holds
harmless, on an after-tax basis, the Administrator, each Purchaser Agent, each Liquidity Provider,
each Program Support Provider and each Purchaser and their respective officers, directors, agents
and employees (each an “Indemnified Party”) from and against any and all damages, losses,
claims, liabilities, penalties, Taxes, costs and expenses (including reasonable attorneys’ fees and
court costs) (all of the foregoing collectively, the “Indemnified Amounts”) at any time
imposed on or incurred by any Indemnified Party arising out of or otherwise relating to any
Transaction Document, the transactions contemplated thereby or the acquisition of any portion of
the Purchased Interest, or any action taken or omitted by any of the Indemnified Parties (including
any action taken by the Administrator as attorney-in-fact for the Seller or any Originator
hereunder or under any other Transaction Document), whether arising by reason of the acts to be
performed by the Seller hereunder or otherwise, excluding only Indemnified Amounts to the extent
(a) a final judgment of a court of competent jurisdiction holds that such Indemnified Amounts
resulted from gross negligence or willful misconduct of the Indemnified Party seeking
indemnification, (b) due to the credit risk of the Obligor and for which reimbursement would
constitute recourse to any Originator, the Seller or the Servicer for uncollectible Receivables or
(c) such Indemnified Amounts include Taxes imposed or based on, or measured by, the gross or net
income or receipts of such Indemnified Party by the jurisdiction under the laws of which such
Indemnified Party is organized (or any political subdivision thereof); provided,
however, that nothing contained in this sentence shall limit the liability of the Seller or
the Servicer or limit the recourse of any Indemnified Party to the Seller or the Servicer for any
amounts otherwise specifically provided to be paid by the Seller or the Servicer hereunder.
Without limiting the foregoing indemnification, but subject to the limitations set forth in
clauses (a), (b) and (c) of the previous sentence, the Seller shall
indemnify each Indemnified Party for Amounts (including losses in respect of uncollectible
Receivables,

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regardless, for purposes of these specific matters, whether reimbursement therefor would
constitute recourse to the Seller or the Servicer) relating to or resulting from:

     (i) any representation or warranty made by the Seller (or any employee or agent of the
Seller) under or in connection with this Agreement, any Information Package or any other
information or report delivered by or on behalf of the Seller pursuant hereto, which shall
have been false or incorrect in any respect when made or deemed made;

     (ii) the failure by the Seller to comply with any applicable law, rule or regulation
related to any Receivable, or the nonconformity of any Receivable with any such applicable
law, rule or regulation;

     (iii) the failure of the Seller to vest and maintain vested in the Administrator, for
the benefit of the Purchasers, a perfected ownership or security interest in the Purchased
Interest and the property conveyed hereunder, free and clear of any Adverse Claim;

     (iv) any commingling of funds to which the Administrator, any Purchaser Agent or any
Purchaser is entitled hereunder with any other funds;

     (v) any failure of a Lock-Box Bank to comply with the terms of the applicable Lock-Box
Agreement;

     (vi) any dispute, claim, offset or defense (other than discharge in bankruptcy of the
Obligor) of the Obligor to the payment of any Receivable, or any other claim resulting from
the sale or lease of goods or the rendering of services related to such Receivable or the
furnishing or failure to furnish any such goods or services or other similar claim or
defense not arising from the financial inability of any Obligor to pay undisputed
indebtedness;

     (vii) any failure of the Seller, to perform its duties or obligations in accordance
with the provisions of this Agreement or any other Transaction Document to which it is a
party;

     (viii) any action taken by the Administrator as attorney-in-fact for the Seller or any
Originator pursuant to this Agreement or any other Transaction Document;

     (ix) the use of proceeds of purchase or reinvestment or the issuance of any Letter of
Credit on behalf of Seller (and, if applicable, on behalf of, or for the account of, any
Originator); or

     (x) any environmental liability claim, products liability claim or personal injury or
property damage suit or other similar or related claim or action of whatever sort, arising
out of or in connection with any Receivable or any other suit, claim or action of whatever
sort relating to any of the Transaction Documents.

     Section 3.2 Indemnities by the Servicer. Without limiting any other rights that any
Indemnified Party may have hereunder or under applicable law, the Servicer hereby agrees to

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indemnify each Indemnified Party from and against any and all Indemnified Amounts arising out
of or resulting from (whether directly or indirectly): (a) the failure of any information contained
in any Information Package to be true and correct, or the failure of any other information provided
to such Indemnified Party by, or on behalf of, the Servicer to be true and correct, (b) the failure
of any representation, warranty or statement made or deemed made by the Servicer (or any of its
officers) under or in connection with this Agreement or any other Transaction Document to which it
is a party to have been true and correct as of the date made or deemed made in all respects when
made, (c) the failure by the Servicer to comply with any applicable law, rule or regulation with
respect to any Pool Receivable or the related Contract, (d) any dispute, claim, offset or defense
of the Obligor to the payment of any Receivable in, or purporting to be in, the Receivables Pool
resulting from or related to the collection activities with respect to such Receivable or (e) any
failure of the Servicer to perform its duties or obligations in accordance with the provisions
hereof or any other Transaction Document to which it is a party.

ARTICLE IV

ADMINISTRATION AND COLLECTIONS

     Section 4.1 Appointment of the Servicer.

     (a) The servicing, administering and collection of the Pool Receivables shall be conducted by
the Person so designated from time to time as the Servicer in accordance with this Section
4.1. Until the Administrator gives notice to Cooper Tire (in accordance with this Section
4.1) of the designation of a new Servicer, Cooper Tire is hereby designated as, and hereby
agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. Upon
the occurrence of a Termination Event, the Administrator may (with the consent of the Majority
Purchaser Agents) or shall (at the direction of the Majority Purchaser Agents) designate as
Servicer any Person (including itself) to succeed Cooper Tire or any successor Servicer, on the
condition in each case that any such Person so designated shall agree to perform the duties and
obligations of the Servicer pursuant to the terms hereof.

     (b) Upon the designation of a successor Servicer as set forth in clause (a), Cooper
Tire agrees that it will terminate its activities as Servicer hereunder in a manner that the
Administrator determines will facilitate the transition of the performance of such activities to
the new Servicer, and Cooper Tire shall cooperate with and assist such new Servicer. Such
cooperation shall include access to and transfer of related records (including all Contracts) and
use by the new Servicer of all licenses, hardware or software necessary or desirable to collect the
Pool Receivables and the Related Security.

     (c) Cooper Tire acknowledges that, in making their decision to execute and deliver this
Agreement, the Administrator and each member in each Purchaser Group have relied on Cooper Tire’s
agreement to act as Servicer hereunder. Accordingly, Cooper Tire agrees that it will not
voluntarily resign as Servicer.

     (d) The Servicer may delegate its duties and obligations hereunder to any subservicer (each a
“Sub-Servicer”); provided, that, in each such delegation: (i) such Sub-Servicer
shall agree in writing to perform the duties and obligations of the Servicer pursuant to the terms

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hereof, (ii) the Servicer shall remain liable for the performance of the duties and
obligations so delegated, (iii) the Seller, the Administrator and each Purchaser Group shall have
the right to look solely to the Servicer for performance, and (iv) the terms of any agreement with
any Sub-Servicer shall provide that the Administrator may terminate such agreement upon the
termination of the Servicer hereunder by giving notice of its desire to terminate such agreement to
the Servicer (and the Servicer shall provide appropriate notice to each such Sub-Servicer);
provided, however, that if any such delegation is to any Person other than an
Originator or an Affiliate thereof, the Administrator and the Majority Purchaser Agents shall have
consented in writing in advance to such delegation.

     Section 4.2 Duties of the Servicer.

     (a) The Servicer shall take or cause to be taken all such action as may be necessary or
advisable to administer and collect each Pool Receivable from time to time, all in accordance with
this Agreement and all applicable laws, rules and regulations, with reasonable care and diligence,
and in accordance with the Credit and Collection Policies. The Servicer shall set aside for the
accounts of the Seller and each Purchaser Group the amount of Collections to which each such
Purchaser Group is entitled in accordance with Article I hereof. The Servicer may correct
errors in Receivables and records of Receivables, including correcting to conform to applicable
laws, rules and regulations, and to the applicable Contract, and, in accordance with the applicable
Credit and Collection Policy, take such action, including modifications, waivers or restructurings
of Pool Receivables and the related Contracts, as the Servicer may reasonably determine to be
appropriate to maximize Collections thereof or reflect adjustments permitted under the Credit and
Collection Policy; provided, however, that: (i) corrections, modifications,
waivers and restructurings shall not alter the status of such Pool Receivable as a Delinquent
Receivable or a Defaulted Receivable or limit the rights of any Purchaser, Purchaser Agent or the
Administrator under this Agreement and (ii) if a Termination Event or an Unmatured Termination
Event has occurred and is continuing and Cooper Tire or an Affiliate thereof is serving as the
Servicer, Cooper Tire or such Affiliate may make such extension or adjustment only upon the prior
approval of the Administrator. The Seller shall deliver to the Servicer and the Servicer shall
hold for the benefit of the Seller and the Administrator (individually and for the benefit of each
Purchaser Group, in accordance with their respective interests, all records and documents
(including computer tapes or disks) with respect to each Pool Receivable. Notwithstanding anything
to the contrary contained herein, the Administrator may direct the Servicer (whether the Servicer
is Cooper Tire or any other Person) to commence or settle any legal action to enforce collection of
any Pool Receivable or to foreclose upon or repossess any Related Security.

     (b) The Servicer shall, as soon as practicable following actual receipt of collected funds,
turn over to the Seller the collections of any indebtedness that is not a Pool Receivable, less, if
Cooper Tire or an Affiliate thereof is not the Servicer, all reasonable and appropriate
out-of-pocket costs and expenses of such Servicer of servicing, collecting and administering such
collections. The Servicer, if other than Cooper Tire or an Affiliate thereof, shall, as soon as
practicable upon demand, deliver to the Seller all records in its possession that evidence or
relate to any indebtedness that is not a Pool Receivable, and copies of records in its possession
that evidence or relate to any indebtedness that is a Pool Receivable.

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     (c) The Servicer’s obligations hereunder shall terminate on the later of: (i) the Facility
Termination Date, (ii) the date on which no Capital or Discount in respect of the Purchased
Interest shall be outstanding, (iii) the date on which an amount equal to 100% of the LC
Participation Amount has been deposited in the LC Collateral Account or all Letters of Credit have
expired, and (iv) the date on which all amounts required to be paid to the Purchaser Agents, each
Purchaser, the Administrator and any other Indemnified Party or Affected Person hereunder shall
have been paid in full.

     After such termination, if Cooper Tire or an Affiliate thereof was not the Servicer on the
date of such termination, the Servicer shall promptly deliver to the Seller all books, records and
related materials that the Seller previously provided to the Servicer, or that have been obtained
by the Servicer, in connection with this Agreement.

     Section 4.3 Lock-Box Account Arrangements. Prior to the Closing Date, the Seller
shall have entered into Lock-Box Agreements with all of the Lock-Box Banks and delivered original
counterparts of each to the Administrator. Upon the occurrence of a Termination Event or Unmatured
Termination Event, the Administrator may (with the consent of the Majority Purchaser Agents) or
shall (upon the direction of the Majority Purchaser Agents) at any time thereafter give notice to
each Lock-Box Bank that the Administrator is exercising its rights under the Lock-Box Agreements to
do any or all of the following: (a) to have the exclusive ownership and control of the Lock-Box
Accounts transferred to the Administrator (for the benefit of the Purchasers) and to exercise
exclusive dominion and control over the funds deposited therein, (b) to have the proceeds that are
sent to the respective Lock-Box Accounts redirected pursuant to the Administrator’s instructions
rather than deposited in the applicable Lock-Box Account, and (c) to take any or all other actions
permitted under the applicable Lock-Box Agreement. The Seller hereby agrees that if the
Administrator at any time takes any action set forth in the preceding sentence, the Administrator
shall have exclusive control (for the benefit of the Purchasers) of the proceeds (including
Collections) of all Pool Receivables and the Seller hereby further agrees to take any other action
that the Administrator or any Purchaser Agent may reasonably request to transfer such control. Any
proceeds of Pool Receivables received by the Seller or the Servicer thereafter shall be sent
immediately to, or as otherwise instructed by, the Administrator. The parties hereto hereby
acknowledge that if at any time the Administrator takes control of any Lock-Box Account, the
Administrator shall not have any rights to the funds therein in excess of the unpaid amounts due to
the Administrator, any member of any Purchaser Group, any Indemnified Party or Affected Person or
any other Person hereunder, and the Administrator shall distribute or cause to be distributed such
funds in accordance with Section 4.2(b) and Article I (in each case as if such
funds were held by the Servicer thereunder).

     Section 4.4 Enforcement Rights.

     (a) At any time following the occurrence of a Termination Event:

     (i) the Administrator may direct the Obligors that payment of all amounts payable under
any Pool Receivable is to be made directly to the Administrator or its designee,

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     (ii) the Administrator may instruct the Seller or the Servicer to give notice of the
Purchaser Groups’ interest in Pool Receivables to each Obligor, which notice shall direct
that payments be made directly to the Administrator or its designee (on behalf of such
Purchaser Groups), and the Seller or the Servicer, as the case may be, shall give such
notice at the expense of the Seller or the Servicer, as the case may be; provided,
that if the Seller or the Servicer, as the case may be, fails to so notify each Obligor, the
Administrator (at the Seller’s or the Servicer’s, as the case may be, expense) may so notify
the Obligors, and

     (iii) the Administrator may request the Servicer to, and upon such request the Servicer
shall: (A) assemble all of the records necessary or desirable to collect the Pool
Receivables and the Related Security, and transfer or license to a successor Servicer the
use of all software necessary or desirable to collect the Pool Receivables and the Related
Security, and make the same available to the Administrator or its designee (for the benefit
of the Purchasers) at a place selected by the Administrator, and (B) segregate all cash,
checks and other instruments received by it from time to time constituting Collections in a
manner acceptable to the Administrator and, promptly upon receipt, remit all such cash,
checks and instruments, duly endorsed or with duly executed instruments of transfer, to the
Administrator or its designee.

     (b) The Seller hereby authorizes the Administrator (on behalf of each Purchaser Group), and
irrevocably appoints the Administrator as its attorney-in-fact with full power of substitution and
with full authority in the place and stead of the Seller, which appointment is coupled with an
interest, to take any and all steps in the name of the Seller and on behalf of the Seller necessary
or desirable, in the determination of the Administrator, after the occurrence of a Termination
Event, to collect any and all amounts or portions thereof due under any and all Pool Assets,
including endorsing the name of the Seller on checks and other instruments representing Collections
and enforcing such Pool Assets. Notwithstanding anything to the contrary contained in this
subsection, none of the powers conferred upon such attorney-in-fact pursuant to the preceding
sentence shall subject such attorney-in-fact to any liability if any action taken by it shall prove
to be inadequate or invalid, nor shall they confer any obligations upon such attorney-in-fact in
any manner whatsoever.

     Section 4.5 Responsibilities of the Seller.

     (a) Anything herein to the contrary notwithstanding, the Seller shall: (i) perform all of its
obligations, if any, under the Contracts related to the Pool Receivables to the same extent as if
interests in such Pool Receivables had not been transferred hereunder, and the exercise by the
Administrator, the Purchaser Agents or the Purchasers of their respective rights hereunder shall
not relieve the Seller from such obligations, and (ii) pay when due any taxes, including any sales
taxes payable in connection with the Pool Receivables and their creation and satisfaction. None of
the Administrator, the Purchaser Agents or any of the Purchasers shall have any obligation or
liability with respect to any Pool Asset, nor shall any of them be obligated to perform any of the
obligations of the Seller, Servicer, Cooper Tire or the Originators thereunder.

     (b) Cooper Tire hereby irrevocably agrees that if at any time it shall cease to be the
Servicer hereunder, it shall act (if the then-current Servicer so requests) as the data-processing

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agent of the Servicer and, in such capacity, Cooper Tire shall conduct the data-processing
functions of the administration of the Receivables and the Collections thereon in substantially the
same way that Cooper Tire conducted such data-processing functions while it acted as the Servicer.

     Section 4.6 Servicing Fee. (a) Subject to clause (b), the Servicer shall be
paid a fee (the “Servicing Fee”) equal to 1.00% per annum (the “Servicing Fee
Rate”) of the daily average aggregate Outstanding Balance of the Pool Receivables. The
Purchasers’ Share of such fee shall be paid through the distributions contemplated by Section
1.4(d), and the Seller’s Share of such fee shall be paid directly by the Seller.

     (b) If the Servicer ceases to be Cooper Tire or an Affiliate thereof, the servicing fee shall
be the greater of: (i) the amount calculated pursuant to clause (a), and (ii) an
alternative amount specified by the successor Servicer not to exceed 110% of the aggregate
reasonable costs and expenses incurred by such successor Servicer in connection with the
performance of its obligations as Servicer.

ARTICLE V

THE AGENTS

     Section 5.1 Appointment and Authorization. (a) Each Purchaser and Purchaser Agent
hereby irrevocably designates and appoints PNC Bank, National Association, as the “Administrator”
hereunder and authorizes the Administrator to take such actions and to exercise such powers as are
delegated to the Administrator hereby and to exercise such other powers as are reasonably
incidental thereto. The Administrator shall hold, in its name, for the benefit of each Purchaser,
ratably, the Purchased Interest. The Administrator shall not have any duties other than those
expressly set forth herein or any fiduciary relationship with any Purchaser or Purchaser Agent, and
no implied obligations or liabilities shall be read into this Agreement, or otherwise exist,
against the Administrator. The Administrator does not assume, nor shall it be deemed to have
assumed, any obligation to, or relationship of trust or agency with, the Seller or Servicer.
Notwithstanding any provision of this Agreement or any other Transaction Document to the contrary,
in no event shall the Administrator ever be required to take any action which exposes the
Administrator to personal liability or which is contrary to the provision of any Transaction
Document or applicable law.

     (b) Each Purchaser hereby irrevocably designates and appoints the respective institution
identified as the Purchaser Agent for such Purchaser’s Purchaser Group on the signature pages
hereto or in the Assumption Agreement or Transfer Supplement pursuant to which such Purchaser
becomes a party hereto, and each authorizes such Purchaser Agent to take such action on its behalf
under the provisions of this Agreement and to exercise such powers and perform such duties as are
expressly delegated to such Purchaser Agent by the terms of this Agreement, if any, together with
such other powers as are reasonably incidental thereto. Notwithstanding any provision to the
contrary elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities,
except those expressly set forth herein, or any fiduciary relationship with any Purchaser or other
Purchaser Agent or the Administrator, and no implied covenants, functions, responsibilities,
duties, obligations or liabilities on the part of such

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Purchaser Agent shall be read into this Agreement or otherwise exist against such Purchaser
Agent.

     (c) Except as otherwise specifically provided in this Agreement, the provisions of this
Article V are solely for the benefit of the Purchaser Agents, the Administrator and the
Purchasers, and none of the Seller or Servicer shall have any rights as a third-party beneficiary
or otherwise under any of the provisions of this Article V, except that this Article
V shall not affect any obligations which any Purchaser Agent, the Administrator or any
Purchaser may have to the Seller or the Servicer under the other provisions of this Agreement.
Furthermore, no Purchaser shall have any rights as a third-party beneficiary or otherwise under any
of the provisions hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such
Purchaser.

     (d) In performing its functions and duties hereunder, the Administrator shall act solely as
the agent of the Purchasers and the Purchaser Agents and does not assume nor shall be deemed to
have assumed any obligation or relationship of trust or agency with or for the Seller or Servicer
or any of their successors and assigns. In performing its functions and duties hereunder, each
Purchaser Agent shall act solely as the agent of its respective Purchaser and does not assume nor
shall be deemed to have assumed any obligation or relationship of trust or agency with or for the
Seller, the Servicer, any other Purchaser, any other Purchaser Agent or the Administrator, or any
of their respective successors and assigns.

     Section 5.2 Delegation of Duties. The Administrator may execute any of its duties
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all
matters pertaining to such duties. The Administrator shall not be responsible for the negligence
or misconduct of any agents or attorneys-in-fact selected by it with reasonable care.

     Section 5.3 Exculpatory Provisions. None of the Purchaser Agents, the Administrator
or any of their respective directors, officers, agents or employees shall be liable for any action
taken or omitted (i) with the consent or at the direction of the Majority Purchaser Agents (or in
the case of any Purchaser Agent, the Purchasers within its Purchaser Group that have a majority of
the aggregate Commitments of such Purchaser Group) or (ii) in the absence of such Person’s gross
negligence or willful misconduct. The Administrator shall not be responsible to any Purchaser,
Purchaser Agent or other Person for (i) any recitals, representations, warranties or other
statements made by the Seller, the Servicer, any Originator or any of their Affiliates, (ii) the
value, validity, effectiveness, genuineness, enforceability or sufficiency of any Transaction
Document, (iii) any failure of the Seller, the Servicer, any Originator or any of their Affiliates
to perform any obligation hereunder or under the other Transaction Documents to which it is a party
(or under any Contract), or (iv) the satisfaction of any condition specified in Exhibit II.
The Administrator shall not have any obligation to any Purchaser or Purchaser Agent to ascertain
or inquire about the observance or performance of any agreement contained in any Transaction
Document or to inspect the properties, books or records of the Seller, the Servicer, any Originator
or any of their respective Affiliates.

     Section 5.4 Reliance by Agents. (a) Each Purchaser Agent and the Administrator shall
in all cases be entitled to rely, and shall be fully protected in relying, upon any document or
other writing or conversation believed by it to be genuine and correct and to have been signed,
sent or made by the proper Person and upon advice and statements of legal counsel (including

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counsel to the Seller), independent accountants and other experts selected by the
Administrator. Each Purchaser Agent and the Administrator shall in all cases be fully justified in
failing or refusing to take any action under any Transaction Document unless it shall first receive
such advice or concurrence of the Majority Purchaser Agents (or in the case of any Purchaser Agent,
the Purchasers within its Purchaser Group that have a majority of the aggregate Commitment of such
Purchaser Group), and assurance of its indemnification, as it deems appropriate.

     (b) The Administrator shall in all cases be fully protected in acting, or in refraining from
acting, under this Agreement in accordance with a request of the Majority Purchaser Agents or the
Purchaser Agents, and such request and any action taken or failure to act pursuant thereto shall be
binding upon all Purchasers, the Administrator and Purchaser Agents.

     (c) The Purchasers within each Purchaser Group with a majority of the Commitments of such
Purchaser Group shall be entitled to request or direct the related Purchaser Agent to take action,
or refrain from taking action, under this Agreement on behalf of such Purchasers. Such Purchaser
Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement in accordance with a request of such Majority Purchaser Agents, and such request and any
action taken or failure to act pursuant thereto shall be binding upon all of such Purchaser Agent’s
Purchasers.

     (d) Unless otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose
behalf such Purchaser Agent is purportedly acting, each party to this Agreement may assume that (i)
such Purchaser Agent is acting for the benefit of each of the Purchasers in respect of which such
Purchaser Agent is identified as being the “Purchaser Agent” in the definition of “Purchaser Agent”
hereto, as well as for the benefit of each assignee or other transferee from any such Person, and
(ii) each action taken by such Purchaser Agent has been duly authorized and approved by all
necessary action on the part of the Purchasers on whose behalf it is purportedly acting. Each
Purchaser Agent and its Purchaser(s) shall agree amongst themselves as to the circumstances and
procedures for removal, resignation and replacement of such Purchaser Agent.

     Section 5.5 Notice of Termination Events. Neither any Purchaser Agent nor the
Administrator shall be deemed to have knowledge or notice of the occurrence of any Termination
Event or Unmatured Termination Event unless the Administrator and the Purchaser Agents have
received notice from any Purchaser, the Servicer or the Seller stating that a Termination Event or
an Unmatured Termination Event has occurred hereunder and describing such Termination Event or
Unmatured Termination Event. In the event that the Administrator receives such a notice, it shall
promptly give notice thereof to each Purchaser Agent whereupon each such Purchaser Agent shall
promptly give notice thereof to its related Purchasers. In the event that a Purchaser Agent
receives such a notice (other than from the Administrator), it shall promptly give notice thereof
to the Administrator. The Administrator shall take such action concerning a Termination Event or
an Unmatured Termination Event as may be directed by the Majority Purchaser Agents (unless such
action otherwise requires the consent of all Purchasers, the LC Bank and/or the Required LC
Participants), but until the Administrator receives such directions, the Administrator may (but
shall not be obligated to) take such action, or refrain from taking such action, as the
Administrator deems advisable and in the best interests of the Purchasers and the Purchaser Agents.

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     Section 5.6 Non-Reliance on Administrator, Purchaser Agents and Other Purchasers.
Each Purchaser expressly acknowledges that none of the Administrator, the Purchaser Agents nor any
of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has
made any representations or warranties to it and that no act by the Administrator, or any Purchaser
Agent hereafter taken, including any review of the affairs of the Seller, Cooper Tire, the Servicer
or any Originator, shall be deemed to constitute any representation or warranty by the
Administrator or such Purchaser Agent, as applicable. Each Purchaser represents and warrants to
the Administrator and the Purchaser Agents that, independently and without reliance upon the
Administrator, Purchaser Agents or any other Purchaser and based on such documents and information
as it has deemed appropriate, it has made and will continue to make its own appraisal of and
investigation into the business, operations, property, prospects, financial and other conditions
and creditworthiness of the Seller, Cooper Tire, the Servicer or the Originators, and the
Receivables and its own decision to enter into this Agreement and to take, or omit, action under
any Transaction Document. Except for items specifically required to be delivered hereunder, the
Administrator shall not have any duty or responsibility to provide any Purchaser Agent with any
information concerning the Seller, Cooper Tire, the Servicer or the Originators or any of their
Affiliates that comes into the possession of the Administrator or any of its officers, directors,
employees, agents, attorneys-in-fact or Affiliates.

     Section 5.7 Administrators and Affiliates. Each of the Purchasers and the
Administrator and any of their respective Affiliates may extend credit to, accept deposits from and
generally engage in any kind of banking, trust, debt, equity or other business with the Seller,
Cooper Tire, the Servicer or any Originator or any of their Affiliates. With respect to the
acquisition of the Eligible Receivables pursuant to this Agreement, each of the Purchaser Agents
and the Administrator shall have the same rights and powers under this Agreement as any Purchaser
and may exercise the same as though it were not such an agent, and the terms “Purchaser” and
“Purchasers” shall include, to the extent applicable, each of the Purchaser Agents and the
Administrator in their individual capacities.

     Section 5.8 Indemnification. Each LC Participant and Related Committed Purchaser
shall indemnify and hold harmless the Administrator (but solely in its capacity as Administrator)
and the LC Bank and their respective officers, directors, employees, representatives and agents (to
the extent not reimbursed by the Seller, the Servicer or any Originator and without limiting the
obligation of the Seller, the Servicer, or any Originator to do so), ratably (based on its
Commitment) from and against any and all liabilities, obligations, losses, damages, penalties,
judgments, settlements, costs, expenses and disbursements of any kind whatsoever (including in
connection with any investigative or threatened proceeding, whether or not the Administrator, the
LC Bank or such Person shall be designated a party thereto) that may at any time be imposed on,
incurred by or asserted against the Administrator, the LC Bank or such Person as a result of, or
related to, any of the transactions contemplated by the Transaction Documents or the execution,
delivery or performance of the Transaction Documents or any other document furnished in connection
therewith (but excluding any such liabilities, obligations, losses, damages, penalties, judgments,
settlements, costs, expenses or disbursements resulting solely from the gross negligence or willful
misconduct of the Administrator, the LC Bank or such Person as finally determined by a court of
competent jurisdiction). Without limiting the generality of the foregoing, each LC Participant
agrees to reimburse the Administrator and the LC Bank, ratably according to its Pro Rata Shares,
promptly upon demand, for any out of pocket

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expenses (including reasonable counsel fees) incurred by the Administrator or the LC Bank in
connection with the administration, modification, amendment or enforcement (whether through
negotiations, legal proceedings or otherwise) of, or legal advice in respect of, its rights and
responsibilities under this Agreement.

     Section 5.9 Successor Administrator. The Administrator may, upon at least five (5)
days’ notice to the Seller, each Purchaser and Purchaser Agent, resign as Administrator. Such
resignation shall not become effective until a successor Administrator is appointed by the Majority
Purchaser Agents and has accepted such appointment. Upon such acceptance of its appointment as
Administrator hereunder by a successor Administrator, such successor Administrator shall succeed to
and become vested with all the rights and duties of the retiring Administrator, and the retiring
Administrator shall be discharged from its duties and obligations under the Transaction Documents.
After any retiring Administrator’s resignation hereunder, the provisions of Sections 3.1
and 3.2 and this Article V shall inure to its benefit as to any actions taken or
omitted to be taken by it while it was the Administrator.

ARTICLE VI

MISCELLANEOUS

     Section 6.1 Amendments, Etc. No amendment or waiver of any provision of this
Agreement or any other Transaction Document, or consent to any departure by the Seller or the
Servicer therefrom, shall be effective unless in a writing signed by the Administrator, the LC Bank
and each of the Majority LC Participants and Majority Purchaser Agents, and, in the case of any
amendment, by the other parties thereto; and then such amendment, waiver or consent shall be
effective only in the specific instance and for the specific purpose for which given;
provided, however, that, to the extent required by the securitization program of
any Conduit Purchaser, no such material amendment shall be effective until the Rating Agency
Condition shall have been satisfied with respect thereto (the Administrator hereby agrees to
provide executed copies of any material amendment to or waiver of any provision of this Agreement
to the Rating Agencies); provided, further that no such amendment or waiver shall,
without the consent of each affected Purchaser, (A) extend the date of any payment or deposit of
Collections by the Seller or the Servicer, (B) reduce the rate or extend the time of payment of
Discount, (C) reduce any fees payable to the Administrator, any Purchaser Agent or any Purchaser
pursuant to the applicable Purchaser Group Fee Letter, (D) change the amount of Capital of any
Purchaser, any Purchaser’s pro rata share of the Purchased Interest or any Related Committed
Purchaser’s or LC Participant’s Commitment, (E) amend, modify or waive any provision of the
definition of “Majority Purchaser Agents” or this Section 6.1, (F) consent to or permit the
assignment or transfer by the Seller of any of its rights and obligations under this Agreement, (G)
change the definition of “Eligible Receivable,” “Loss Reserve,” “Loss Reserve Percentage,”
“Dilution Reserve,” “Dilution Reserve Percentage”, “Specifically Reserved Dilution Amount” or
“Termination Event”, or (H) amend or modify any defined term (or any defined term used directly or
indirectly in such defined term) used in clauses (A) through (G) above in a manner that would
circumvent the intention of the restrictions set forth in such clauses. No failure on the part of
the Purchasers, the Purchaser Agents or the Administrator to exercise, and no delay in exercising
any right hereunder shall operate as a waiver thereof, nor shall any single or partial

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exercise of any right hereunder preclude any other or further exercise thereof or the exercise
of any other right.

     Section 6.2 Notices, Etc. All notices and other communications provided for hereunder
shall, unless otherwise stated herein, be in writing (including facsimile communication) and shall
be personally delivered or sent by facsimile, or by overnight mail, to the intended party at the
mailing address or facsimile number of such party set forth under its name on the signature pages
hereof (or in any other document or agreement pursuant to which it is or became a party hereto), or
at such other address or facsimile number as shall be designated by such party in a written notice
to the other parties hereto. All such notices and communications shall be effective (i) if
delivered by overnight mail, when received, and (ii) if transmitted by facsimile, when sent,
receipt confirmed by telephone or electronic means.

     Section 6.3 Successors and Assigns; Participations; Assignments.

     (a) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns. Except as otherwise
provided in Section 4.1(d), neither the Seller nor the Servicer may assign or transfer any of its
rights or delegate any of its duties hereunder or under any Transaction Document without the prior
consent of the Administrator, the LC Bank, the Required LC Participants and the Purchaser Agents.

     (b) Participations. (i) Except as otherwise specifically provided herein, any
Purchaser may sell to one or more Persons (each a “Participant”) participating interests in
the interests of such Purchaser hereunder; provided, however, that no Purchaser
shall grant any participation under which the Participant shall have rights to approve any
amendment to or waiver of this Agreement or any other Transaction Document. Such Purchaser shall
remain solely responsible for performing its obligations hereunder, and the Seller, each Purchaser
Agent and the Administrator shall continue to deal solely and directly with such Purchaser in
connection with such Purchaser’s rights and obligations hereunder. A Purchaser shall not agree
with a Participant to restrict such Purchaser’s right to agree to any amendment hereto, except
amendments that require the consent of all Purchasers. (ii) Notwithstanding anything contained in
paragraph (a) or clause (i) of paragraph (b) of this Section 6.3, each of the LC Bank and each LC
Participant may sell participations in all or any part of any Funded Purchase made by such LC
Participant to another bank or other entity so long as (i) no such grant of a participation shall,
without the consent of the Seller, require the Seller to file a registration statement with the SEC
and (ii) no holder of any such participation shall be entitled to require such LC Participant to
take or omit to take any action hereunder except that such LC Participant may agree with such
participant that, without such Participant’s consent, such LC Participant will not consent to an
amendment, modification or waiver referred to in Section 6.1. Any such Participant shall not have
any rights hereunder or under the Transaction Documents.

     (c) Assignments by Certain Related Committed Purchasers. Any Related Committed
Purchaser may assign to one or more Persons (each a “Purchasing Related Committed
Purchaser”), reasonably acceptable to the Administrator, the LC Bank and the related Purchaser
Agent in its sole discretion, any portion of its Commitment (which shall be inclusive of its
Commitment as an LC Participant) pursuant to a supplement hereto, substantially in the form of

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Annex D with any changes as have been approved by the parties thereto (each, a
“Transfer Supplement”), executed by each such Purchasing Related Committed Purchaser, such
selling Related Committed Purchaser, such related Purchaser Agent and the Administrator. Any such
assignment by Related Committed Purchaser cannot be for an amount less than $10,000,000. Upon (i)
the execution of the Transfer Supplement, (ii) delivery of an executed copy thereof to the Seller,
such related Purchaser Agent and the Administrator and (iii) payment by the Purchasing Related
Committed Purchaser to the selling Related Committed Purchaser of the agreed purchase price, if
any, such selling Related Committed Purchaser shall be released from its obligations hereunder to
the extent of such assignment and such Purchasing Related Committed Purchaser shall for all
purposes be a Related Committed Purchaser party hereto and shall have all the rights and
obligations of a Related Committed Purchaser hereunder to the same extent as if it were an original
party hereto. The amount of the Commitment of the selling Related Committed Purchaser allocable to
such Purchasing Related Committed Purchaser shall be equal to the amount of the Commitment of the
selling Related Committed Purchaser transferred regardless of the purchase price, if any, paid
therefor. The Transfer Supplement shall be an amendment hereof only to the extent necessary to
reflect the addition of such Purchasing Related Committed Purchaser as a “Related Committed
Purchaser” and a related “LC Participant” and any resulting adjustment of the selling Related
Committed Purchaser’s Commitment.

     (d) Assignments to Liquidity Providers and other Program Support Providers. Any
Conduit Purchaser may at any time grant to one or more of its Liquidity Providers or other Program
Support Providers, participating interests in its portion of the Purchased Interest. In the event
of any such grant by such Conduit Purchaser of a participating interest to a Liquidity Provider or
other Program Support Provider, such Conduit Purchaser shall remain responsible for the performance
of its obligations hereunder. The Seller agrees that each Liquidity Provider and Program Support
Provider of any Conduit Purchaser hereunder shall be entitled to the benefits of Section
1.7.

     (e) Other Assignment by Conduit Purchasers. Each party hereto agrees and consents (i)
to any Conduit Purchaser’s assignment, participation, grant of security interests in or other
transfers of any portion of, or any of its beneficial interest in, the Purchased Interest (or
portion thereof), including without limitation to any collateral agent in connection with its
commercial paper program and (ii) to the complete assignment by any Conduit Purchaser of all of its
rights and obligations hereunder to any other Person, and upon such assignment such Conduit
Purchaser shall be released from all obligations and duties, if any, hereunder; provided,
however, that such Conduit Purchaser may not, without the prior consent of its Related
Committed Purchasers, make any such transfer of its rights hereunder unless the assignee (i) is
principally engaged in the purchase of assets similar to the assets being purchased hereunder, (ii)
has as its Purchaser Agent the Purchaser Agent of the assigning Conduit Purchaser and (iii) issues
commercial paper or other Notes with credit ratings substantially comparable to the ratings of the
assigning Conduit Purchaser. Any assigning Conduit Purchaser shall deliver to any assignee a
Transfer Supplement with any changes as have been approved by the parties thereto, duly executed by
such Conduit Purchaser, assigning any portion of its interest in the Purchased Interest to its
assignee. Such Conduit Purchaser shall promptly (i) notify each of the other parties hereto of
such assignment and (ii) take all further action that the assignee reasonably requests in order to
evidence the assignee’s right, title and interest in such interest in the

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Purchased Interest and to enable the assignee to exercise or enforce any rights of such
Conduit Purchaser hereunder. Upon the assignment of any portion of its interest in the Purchased
Interest, the assignee shall have all of the rights hereunder with respect to such interest (except
that the Discount therefor shall thereafter accrue at the rate, determined with respect to the
assigning Conduit Purchaser unless the Seller, the related Purchaser Agent and the assignee shall
have agreed upon a different Discount).

     (f) Opinions of Counsel. If required by the Administrator or the applicable Purchaser
Agent or to maintain the ratings of any Conduit Purchaser, each Transfer Supplement or other
assignment and acceptance agreement must be accompanied by an opinion of counsel of the assignee as
to such matters as the Administrator or such Purchaser Agent may reasonably request.

     Section 6.4 Costs, Expenses and Taxes. (a) By way of clarification, and not of
limitation, of Sections 1.7 or 3.1, the Seller shall pay to the Administrator, each
Purchaser Agent and/or any Purchaser on demand all costs and expenses in connection with (i) the
preparation, execution, delivery and administration (including amendments or waivers of any
provision) of this Agreement or the other Transaction Documents, (ii) the sale of the Purchased
Interest (or any portion thereof), (iii) the perfection (and continuation) of the Administrator’s
rights in the Receivables, Collections and other Pool Assets, (iv) the enforcement by the
Administrator, any Purchaser Agent or any member of any Purchaser Group of the obligations of the
Seller, the Servicer or the Originators under the Transaction Documents or of any Obligor under a
Receivable and (v) the maintenance by the Administrator of the Lock-Box Accounts (and any related
lock-box or post office box), including fees, costs and expenses of legal counsel for the
Administrator and the Purchaser Agents relating to any of the foregoing or to advising the
Administrator or any member of any Purchaser Group (including, any related Liquidity Provider or
any other related Program Support Provider) about its rights and remedies under any Transaction
Document or any other document, agreement or instrument related thereto and all costs and expenses
(including counsel fees and expenses) of the Administrator and any Purchaser Agent in connection
with the enforcement or administration of the Transaction Documents or any other document,
agreement or instrument related thereto. The Seller shall reimburse the Administrator and each
Purchaser Agent for the cost of such Person’s auditors (which may be employees of such Person)
auditing the books, records and procedures of the Seller or the Servicer. The Seller shall
reimburse each Conduit Purchaser for any amounts such Conduit Purchaser must pay to any related
Liquidity Provider or other related Program Support Provider pursuant to any Funding Agreement on
account of any Tax. The Seller shall reimburse each Conduit Purchaser on demand for all out of
pocket costs and expenses incurred by such Conduit Purchaser in connection with the Transaction
Documents or the transactions contemplated thereby.

     (b) In addition, the Seller shall pay on demand any and all stamp and other taxes and fees
payable in connection with the execution, delivery, filing and recording of this Agreement or the
other documents or agreements to be delivered hereunder, and agrees to save each Indemnified Party
and Affected Person harmless from and against any liabilities with respect to or resulting from any
delay in paying or omission to pay such taxes and fees.

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     Section 6.5 No Proceedings; Limitation on Payments. (a) Each of the Seller, Cooper
Tire, the Servicer, the Administrator, the Purchaser Agents, the Purchasers, each assignee of the
Purchased Interest or any interest therein, and each Person that enters into a commitment to
purchase the Purchased Interest or interests therein, hereby covenants and agrees that it will not
institute against, or join any other Person in instituting against, any Conduit Purchaser any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding
under any federal or state bankruptcy or similar law, for one year and one day after the latest
maturing Note issued by such Conduit Purchaser is paid in full. The provisions of this paragraph
shall survive any termination of this Agreement.

     (b) Notwithstanding any provisions contained in this Agreement to the contrary, no Conduit
Purchaser shall or shall be obligated to, pay any amount, if any, payable by it pursuant to this
Agreement or any other Transaction Document unless (i) such Conduit Purchaser has received funds
which may be used to make such payment and which funds are not required to repay the Notes when due
and (ii) after giving effect to such payment, either (x) such Conduit Purchaser could issue Notes
to refinance all outstanding Notes (assuming such outstanding Notes matured at such time) in
accordance with the program documents governing such Conduit Purchaser’s securitization program or
(y) all Notes are paid in full. Any amount which such Conduit Purchaser does not pay pursuant to
the operation of the preceding sentence shall not constitute a claim (as defined in §101 of the
Bankruptcy Code) against or company obligation of such Conduit Purchaser for any such insufficiency
unless and until such Conduit Purchaser satisfies the provisions of clauses (i) and
(ii) above. The provisions of this paragraph shall survive any termination of this
Agreement.

     Section 6.6 GOVERNING LAW AND JURISDICTION.

     (a) THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE INTERNAL
LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF THE GENERAL
OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR PERFECTION OF A
SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY
THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

     (b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS
OF THE STATE OF NEW YORK OR OF THE UNITED STATES FOR THE SOUTHERN DISTRICT OF NEW YORK; AND, BY
EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PARTIES HERETO CONSENTS, FOR ITSELF AND IN
RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PARTIES
HERETO IRREVOCABLY WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY
OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, THAT IT MAY NOW
OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN SUCH JURISDICTION IN RESPECT OF
THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. EACH OF THE PARTIES HERETO WAIVES PERSONAL SERVICE

-35-

 

OF ANY SUMMONS, COMPLAINT OR OTHER PROCESS, WHICH SERVICE MAY BE MADE BY ANY OTHER MEANS
PERMITTED BY NEW YORK LAW.

     Section 6.7 Confidentiality. Unless otherwise required by applicable law, each of the
Seller and the Servicer agrees to maintain the confidentiality of this Agreement and the other
Transaction Documents (and all drafts thereof) in communications with third parties and otherwise;
provided, that this Agreement may be disclosed (a) to third parties to the extent such
disclosure is made pursuant to a written agreement of confidentiality in form and substance
reasonably satisfactory to the Administrator and each Purchaser Agent, (b) to the Seller’s and
Servicer’s legal counsel and auditors if they agree to hold it confidential and (c) as may be
necessary or desirable for financial reports, reports required by state and federal securities laws
and by any other law. The Purchaser Agents and the Purchasers agree to maintain the
confidentiality of non-public financial and other business and proprietary information regarding
the Seller, the Servicer and the Originators; provided, that such information may be
disclosed (i) to third parties to the extent such disclosure is made pursuant to a written
agreement of confidentiality in form and substance reasonably satisfactory to the Servicer, (ii) to
legal counsel and auditors of the Purchasers, the Purchaser Agents or the Administrator if they
agree to hold it confidential, (iii) if applicable to the rating agencies rating the Notes of any
Conduit Purchaser, (iv) to any Program Support Provider or potential Program Support Provider (if
they agree to hold it confidential), (v) to any placement agency placing the Notes, (vi) to any
regulatory authorities having jurisdiction over the Administrator, the Purchaser Agents, any
Purchaser, any Program Support Provider or any Liquidity Provider, and (vii) with prompt notice to
the Servicer in advance if practicable and permitted by law, to others as otherwise required by
law.

     Section 6.8 Execution in Counterparts. This Agreement may be executed in any number
of counterparts, each of which, when so executed, shall be deemed to be an original, and all of
which, when taken together, shall constitute one and the same agreement.

     Section 6.9 Survival of Termination. The provisions of Sections 1.7,
1.8, 1.9, 1.10, 3.1, 3.2, 6.4, 6.5,
6.6, 6.7, 6.10 and 6.15 shall survive any termination of this
Agreement.

     Section 6.10 WAIVER OF JURY TRIAL. EACH OF THE PARTIES HERETO WAIVES THEIR RESPECTIVE
RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY IN ANY ACTION, PROCEEDING OR OTHER
LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER
WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. EACH OF THE PARTIES HERETO AGREES THAT
ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING
THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY
JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING THAT
SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY
PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT.

-36-

 

     Section 6.11 Sharing of Recoveries. Each Purchaser agrees that if it receives any
recovery, through set-off, judicial action or otherwise, on any amount payable or recoverable
hereunder in a greater proportion than should have been received hereunder or otherwise
inconsistent with the provisions hereof, then the recipient of such recovery shall purchase for
cash an interest in amounts owing to the other Purchasers (as return of Capital or otherwise),
without representation or warranty except for the representation and warranty that such interest is
being sold by each such other Purchaser free and clear of any Adverse Claim created or granted by
such other Purchaser, in the amount necessary to create proportional participation by the Purchaser
in such recovery. If all or any portion of such amount is thereafter recovered from the recipient,
such purchase shall be rescinded and the purchase price restored to the extent of such recovery,
but without interest.

     Section 6.12 Right of Setoff. Each Purchaser is hereby authorized (in addition to any
other rights it may have) to setoff, appropriate and apply (without presentment, demand, protest or
other notice which are hereby expressly waived) any deposits and any other indebtedness held or
owing by such Purchaser (including by any branches or agencies of such Purchaser) to, or for the
account of, the Seller against amounts owing by the Seller hereunder (even if contingent or
unmatured).

     Section 6.13 Entire Agreement. This Agreement and the other Transaction Documents
embody the entire agreement and understanding between the parties hereto, and supersede all prior
or contemporaneous agreements and understandings of such Persons, verbal or written, relating to
the subject matter hereof and thereof.

     Section 6.14 Headings. The captions and headings of this Agreement and any Exhibit,
Schedule or Annex hereto are for convenience of reference only and shall not affect the
interpretation hereof or thereof.

     Section 6.15 Purchaser Groups’ Liabilities. The obligations of each Purchaser Agent
and each Purchaser under the Transaction Documents are solely the corporate obligations of such
Person. Except with respect to any claim arising out of the willful misconduct or gross negligence
of the Administrator, any Purchaser Agent or any Purchaser, no claim may be made by the Seller or
the Servicer or any other Person against the Administrator, any Purchaser Agent or any Purchaser or
their respective Affiliates, directors, officers, employees, attorneys or agents for any special,
indirect, consequential or punitive damages in respect of any claim for breach of contract or any
other theory of liability arising out of or related to the transactions contemplated by this
Agreement or any other Transaction Document, or any act, omission or event occurring in connection
therewith; and each of Seller and Servicer hereby waives, releases, and agrees not to sue upon any
claim for any such damages, whether or not accrued and whether or not known or suspected to exist
in its favor.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

-37-

 

     IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written.

	 	 	 	 	 
	 	COOPER RECEIVABLES LLC, as Seller

 	 
	 	By:  	/s/ Charles F. Nagy	 
	 	 	Name:  	Charles F. Nagy 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	 	 
	 	By:  	/s/ Stephen O. Schroeder	 
	 	 	Name:  	Stephen O. Schroeder 	 
	 	 	Title:  	President and Treasurer 	 

	 	 	 	 	 
	 

	 	Address:
	 	Cooper Receivables LLC
	 

	 	 	 	701 Lima Avenue
	 

	 	 	 	Findlay, OH 45840
	 

	 	 	 	Attention: C. F. Nagy, Manager
	 

	 	 	 	Telephone: (419) 424-4214
	 

	 	 	 	Facsimile: (419) 424-4212

Receivables Purchase Agreement
(Cooper Tire)

S-1

 

	 	 	 	 	 
	 	COOPER TIRE & RUBBER COMPANY, as Servicer

 	 
	 	By:  	/s/ Philip G. Weaver	 
	 	 	Name:  	Philip G. Weaver 	 
	 	 	Title:  	Vice President & Chief Financial Officer 	 
	 
	 	 	 
	 	By:  	/s/ Stephen O. Schroeder	 
	 	 	Name:  	Stephen O. Schroeder 	 
	 	 	Title:  	Vice President and Treasurer 	 

	 	 	 	 	 	 	 
	 	 	Address:	 	Cooper Tire & Rubber Company
	 	 	 	 	701 Lima Avenue
	 	 	 	 	Findlay, OH 45840
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Philip G. Weaver,

Vice President and Chief Financial

Officer
	 

	 	 	 	Telephone:
	 	(419) 424-4320
	 

	 	 	 	Facsimile:
	 	(419) 424-4212
	 
	 	 	 	 	 	 
	 

	 	 	 	Copy to:	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	James E. Kline, General Counsel
	 	 	 	 	Cooper Tire & Rubber Company
	 	 	 	 	701 Lima Avenue
	 	 	 	 	Findlay, OH 45840
	 
	 	 	 	 	 	 
	 

	 	 	 	Telephone:
	 	(419) 427-4757
	 

	 	 	 	Facsimile:
	 	(419) 831-6876

Receivables Purchase Agreement
(Cooper Tire)

S-2

 

	 	 	 	 	 
	 	MARKET STREET FUNDING LLC,

as Related Committed Purchaser

 	 
	 	By:  	/s/ Doris J. Hearn	 
	 	 	Name:  	Doris J. Hearn	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 	 	 
	 	 	Address:	 	c/o AMACAR Group, L.L.C.
	 	 	 	 	6525 Morrison Blvd., Suite 318

	 	 	 	 	Charlotte, North Carolina 28211
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Douglas K. Johnson
	 

	 	 	 	Telephone:
	 	(704) 365-0569
	 

	 	 	 	Facsimile:
	 	(704) 365-1362
	 
	 	 	 	 	 	 
	 	 	 	 	Commitment: $125,000,000

	 	 	 	 	 
	 	 
MARKET STREET FUNDING LLC, 

as Conduit Purchaser

 	 
	 	By:  	/s/ Doris J. Hearn	 
	 	 	Name:  	Doris J. Hearn	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 	 	 
	 	 	Address:	 	c/o AMACAR Group, L.L.C.
	 	 	 	 	6525 Morrison Blvd., Suite 318
	 	 	 	 	Charlotte, North Carolina 28211
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Douglas K. Johnson
	 

	 	 	 	Telephone:
	 	(704) 365-0569
	 

	 	 	 	Facsimile:
	 	(704) 365-1362

 Receivables Purchase Agreement
(Cooper Tire)

S-3

 

	 	 	 	 	 
	 	PNC BANK, NATIONAL ASSOCIATION, as the LC 

Bank and as an LC Participant

 	 
	 	By:  	/s/ Joseph G. Moran	 
	 	 	Name:  	Joseph G. Moran	 
	 	 	Title:  	Managing Director	 

	 	 	 	 	 	 	 
	 	 	Address:	 	PNC Bank, N.A.
	 	 	 	 	1375 E. 9th Street
	 	 	 	 	Cleveland, OH 44114
	 
	 	 	 	 	 	 
	 	 	Attention:	 	Joseph Moran, Managing Director
	 	 	Telephone:	 	216-348-8560
	 	 	Facsimile:	 	216-648-8594
	 
	 	 	 	 	 	 
	 	 	Commitment:	 	 $125,000,000
	 	 	Pro-Rata Share:	 	 100%

	 	 	 	 	 
	 	 
PNC BANK, NATIONAL ASSOCIATION, as 

Administrator

 	 
	 	By:  	/s/ William P. Falcon	 
	 	 	Name:  	William P. Falcon	 
	 	 	Title:  	Vice President	 

	 	 	 	 	 	 	 
	 	 	Address:	 	PNC Bank, National Association
	 	 	 	 	One PNC P1aza
	 	 	 	 	249 Fifth Avenue
	 	 	 	 	Pittsburgh, Pennsylvania 15222-2707
	 
	 	 	 	 	 	 
	 

	 	 	 	Attention:
	 	Bill Falcon
	 

	 	 	 	Telephone:
	 	(412) 762-5442
	 

	 	 	 	Facsimile:
	 	(412) 762-9184

Receivables Purchase Agreement
(Cooper Tire)

S-4

 

EXHIBIT I

DEFINITIONS

     As used in this Agreement (including its Exhibits, Schedules and Annexes), the following terms
shall have the following meanings (such meanings to be equally applicable to both the singular and
plural forms of the terms defined). Unless otherwise indicated, all Section, Annex, Exhibit and
Schedule references in this Exhibit are to Sections of and Annexes, Exhibits and Schedules to this
Agreement.

     “Administrator” has the meaning set forth in the preamble to this Agreement.

     “Adverse Claim” means a lien, security interest or other charge or encumbrance, or any
other type of preferential arrangement; it being understood that any thereof in favor of
the Administrator (for the benefit of the Purchasers ) shall not constitute an Adverse Claim.

     “Affected Person” has the meaning set forth in Section 1.7 of this Agreement.

     “Affiliate” means, as to any Person: (a) any Person that, directly or indirectly, is
in control of, is controlled by or is under common control with such Person, or (b) who is a
director or officer: (i) of such Person or (ii) of any Person described in clause (a),
except that, in the case of each Conduit Purchaser, Affiliate shall mean the holder of its capital
stock or membership interest, as the case may be. For purposes of this definition, control of a
Person shall mean the power, direct or indirect: (x) to vote 25% or more of the securities having
ordinary voting power for the election of directors of such Person, or (y) to direct or cause the
direction of the management and policies of such Person, in either case whether by ownership of
securities, contract, proxy or otherwise.

     “Aggregate Capital” means the amount paid to the Seller in respect of the Purchased
Interest or portion thereof by each Purchaser pursuant to this Agreement, as reduced from time to
time by Collections distributed and applied on account of such Aggregate Capital pursuant to
Section 1.4(d) of this Agreement; provided, that if such Aggregate Capital shall
have been reduced by any distribution, and thereafter all or a portion of such distribution is
rescinded or must otherwise be returned for any reason, such Aggregate Capital shall be increased
by the amount of such rescinded or returned distribution as though it had not been made.

     “Aggregate Discount” at any time, means the sum of the aggregate for each Purchaser of
the accrued and unpaid Discount with respect to each such Purchaser’s Capital at such time.

     “Agreement” has the meaning set forth in the preamble hereto.

     “Alternate Rate” for any Yield Period for any Capital (or portion thereof) funded by
any Purchaser other than through the issuance of Notes, means an interest rate per annum equal to:
(a) 2.0% per annum above the Euro-Rate for such Yield Period, or, in the sole discretion of the
applicable Purchaser Agent (b) the Base Rate for such Yield Period; provided,
however, that the “Alternate Rate” for any day while a Termination Event or an Unmatured
Termination Event exists shall be an interest rate equal to 2.0% per annum above the Base Rate in
effect on such day.

I-1

 

     “Assumption Agreement” means an agreement substantially in the form set forth in
Annex C to this Agreement.

     “Attorney Costs” means and includes all reasonable fees and disbursements of any law
firm or other external counsel, the reasonable allocated cost of internal legal services and all
reasonable disbursements of internal counsel.

     “Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978 (11 U.S.C. §
101, et seq.), as amended from time to time.

     “Base Rate” means, with respect to any Purchaser, for any day, a fluctuating interest
rate per annum as shall be in effect from time to time, which rate shall be at all times equal to
the higher of:

     (a) the rate of interest in effect for such day as publicly announced from time to time
by the applicable Purchaser Agent (or applicable Related Committed Purchaser) as its
“reference rate”. Such “reference rate” is set by the applicable Purchaser Agent based upon
various factors, including the applicable Purchaser Agent’s costs and desired return,
general economic conditions and other factors, and is used as a reference point for pricing
some loans, which may be priced at, above or below such announced rate, and

     (b) 0.50% per annum above the latest Federal Funds Rate.

     “BBA” means the British Bankers’ Association.

     “Benefit Plan” means any employee benefit pension plan as defined in Section 3(2) of
ERISA in respect of which the Seller, any Originator, Cooper Tire or any ERISA Affiliate is, or at
any time during the immediately preceding six years was, an “employer” as defined in Section 3(5)
of ERISA.

     “Business Day” means any day (other than a Saturday or Sunday) on which: (a) banks are
not authorized or required to close in Pittsburgh, Pennsylvania, or New York City, New York, and
(b) if this definition of “Business Day” is utilized in connection with the Euro-Rate, dealings are
carried out in the London interbank market.

     “CAD Lock-Box Account” means that certain account maintained at JPMorgan Chase Bank,
N.A. (Canada), which is subject to a Lock-Box Agreement for the purpose of receiving Collections.

     “Canadian Currency Volatility Reserve” means the value at risk percentage calculated
by PNC Bank, National Association from time to time, and which shall initially be 6.77%, multiplied
by an amount equal to the U.S. Dollar Equivalent of the aggregate Outstanding Balance of
Receivables payable in Canadian Dollars.

     “Canadian Dollars” means the lawful currency of Canada.

     “Capital” means with respect to any Purchaser, (a) the amount paid to the Seller by
such Purchaser pursuant to Section 1.1(a) or (b) of this Agreement or (b) such Purchaser’s Pro Rata

I-2

 

Share of the aggregate amount of all unreimbursed draws deemed to be Funded Purchases pursuant
to Section 1.2(e) of this Agreement, as reduced from time to time by Collections distributed and
applied on account of such Capital pursuant to Section 1.4(d) of this Agreement;
provided, that if such Capital shall have been reduced by any distribution and thereafter
all or a portion of such distribution is rescinded or must otherwise be returned for any reason,
such Capital shall be increased by the amount of such rescinded or returned distribution as though
it had not been made.

     “Change in Control” means that Cooper Tire ceases to own, directly or indirectly, (a)
100% of the membership interests of the Seller free and clear of all Adverse Claims or (b) 100% of
the voting stock of any other Originator free and clear of all Adverse Claims.

     “Closing Date” means September 14, 2007.

     “Collections” means, with respect to any Pool Receivable: (a) all funds that are
received by any Originator, Cooper Tire, the Seller or the Servicer in payment of any amounts owed
in respect of such Receivable (including purchase price, finance charges, interest and all other
charges), or applied to amounts owed in respect of such Receivable (including insurance payments
and net proceeds of the sale or other disposition of repossessed goods or other collateral or
property of the related Obligor or any other Person directly or indirectly liable for the payment
of such Pool Receivable and available to be applied thereon), (b) all Deemed Collections and (c)
all other proceeds of such Pool Receivable.

     “Commitment” means, with respect to any Related Committed Purchaser, LC Participant or
LC Bank, as applicable, the maximum aggregate amount which such Purchaser is obligated to pay
hereunder on account of all Funded Purchases and all drawings under all Letters of Credit, on a
combined basis, as set forth below its signature to this Agreement or in the Assumption Agreement
or other agreement pursuant to which it became a Purchaser, as such amount may be modified in
connection with any subsequent assignment pursuant to Section 6.3(c) or in connection with
a change in the Purchase Limit pursuant to Section 1.1(b).

     “Commitment Percentage” means, for each Related Committed Purchaser or related LC
Participant in a Purchaser Group, the Commitment of such Related Committed Purchaser or related LC
Participant, as the case may be, divided by the total of all Commitments of all Related Committed
Purchasers or related LC Participants, as the case may be, in such Purchaser Group.

     “Company Note” has the meaning set forth in Section 3.1 of the Sale Agreement.

     “Concentration Percentage” means, at any time: (a) for any Group A Obligor, 20.0%, (b)
for any Group B Obligor, 20.0%, (c) for any Group C Obligor, 10.0% and (d) (i) for the four (4)
Group D Obligors with the largest Outstanding Balance of Receivables, collectively, 30.0% and (ii)
for any other Group D Obligor, 5.0%; provided, however, that the Administrator
(with the prior written consent of the Majority Purchaser Agents ), may (to the extent the Rating
Agency Condition has been satisfied with respect thereto if required by the securitization program
of any Conduit Purchaser) approve higher Concentration Percentages for selected Obligors.

I-3

 

     “Concentration Reserve” means at any time, the product of (a) the sum of (i) the
Aggregate Capital plus (ii) the LC Participation Amount, multiplied by (b)(i) the Concentration
Reserve Percentage divided by (ii) 1, minus the Concentration Reserve Percentage.

     “Concentration Reserve Percentage” means, at any time, the (a) largest of the
following (i) the sum of the four (4) largest Group D Obligor Receivables balances (up to the
Concentration Percentage for the four (4) largest Group D Obligors), (ii) the sum of the two (2)
largest Group C Obligor Receivables balances (up to the Concentration Percentage for each Obligor),
(iii) the largest Group B Obligor Receivables balance (up to the Concentration Percentage for each
Obligor), and (iv) the largest Group A Obligor Receivables balance (up to the Concentration
Percentage for such Obligor), divided by (b) the sum of the outstanding balances of all Eligible
Receivables.

     “Conduit Purchasers” means each commercial paper conduit that is a party to this
Agreement, as a purchaser, or that becomes a party to this Agreement, as a purchaser pursuant to an
Assumption Agreement or otherwise.

     “Contract” means, with respect to any Receivable, any and all contracts, instruments,
agreements, leases, invoices, notes or other writings pursuant to which such Receivable arises or
that evidence such Receivable or under which an Obligor becomes or is obligated to make payment in
respect of such Receivable.

     “Cooper Tire” has the meaning set forth in the preamble to this Agreement.

     “CP Rate” means, for any Conduit Purchaser and for any Yield Period for any Portion of
Capital (a) the per annum rate equivalent to the weighted average cost (as
determined by the applicable Purchaser Agent and which shall include commissions of placement
agents and dealers, incremental carrying costs incurred with respect to Notes of such Person
maturing on dates other than those on which corresponding funds are received by such Conduit
Purchaser, other borrowings by such Conduit Purchaser (other than under any Program Support
Agreement) and any other costs associated with the issuance of Notes) of or related to the issuance
of Notes that are allocated, in whole or in part, by the applicable Purchaser Agent to fund or
maintain such Portion of Capital (and which may be also allocated in part to the funding of other
assets of such Conduit Purchaser); provided, however, that if any component of such
rate is a discount rate, in calculating the “CP Rate” for such Portion of Capital for such
Yield Period, the applicable Purchaser Agent shall for such component use the rate resulting from
converting such discount rate to an interest bearing equivalent rate per annum;
provided, further, that notwithstanding anything in this Agreement or the other
Transaction Documents to the contrary, the Seller agrees that any amounts payable to the Purchasers
in respect of Discount for any Yield Period with respect to any Portion of Capital funded by such
Purchaser at the CP Rate shall include an amount equal to the portion of the face amount of the
outstanding Notes issued to fund or maintain such Portion of Capital that corresponds to the
portion of the proceeds of such Notes that was used to pay the interest component of maturing Notes
issued to fund or maintain such Portion of Capital, to the extent that such Purchaser had not
received payments of interest in respect of such interest component prior to the maturity date of
such maturing Notes (for purposes of the foregoing, the “interest component” of Notes equals the
excess of the face

I-4

 

amount thereof over the net proceeds received by such Purchaser from the issuance of Notes,
except that if such Notes are issued on an interest-bearing basis its “interest component” will
equal the amount of interest accruing on such Notes through maturity) or (b) any other rate
designated as the “CP Rate” for such Conduit Purchaser in an Assumption Agreement or Transfer
Supplement pursuant to which such Person becomes a party as a Conduit Purchaser to this Agreement,
or any other writing or agreement provided by such Conduit Purchaser to the Seller, the Servicer
and the applicable Purchaser Agent from time to time. The “CP Rate” for any day while a
Termination Event or an Unmatured Termination Event exists shall be an interest rate equal to 2.0%
per annum above the Base Rate as in effect on such day.

     “Credit and Collection Policy” means, as the context may require, those receivables
credit and collection policies and practices of each Originator and of Cooper Tire in effect on the
date of this Agreement and described in Schedule I to this Agreement, as modified in
compliance with this Agreement.

     “Cut-off Date” has the meaning set forth in Section 1.1(a) the Sale Agreement.

     “Days’ Sales Outstanding” means, for any calendar month, an amount computed as of the
last day of such calendar month equal to: (a) the average of the Outstanding Balance of all Pool
Receivables as of the last day of each of the three most recent calendar months ended on the last
day of such calendar month divided by (b)(i) the aggregate credit sales made by the Originators
during the three calendar months ended on the last day of such calendar month divided by (ii) 90.

     “Debt” means: (a) indebtedness for borrowed money, (b) obligations evidenced by bonds,
debentures, notes or other similar instruments, (c) obligations to pay the deferred purchase price
of property or services, (d) obligations as lessee under leases that shall have been or should be,
in accordance with generally accepted accounting principles, recorded as capital leases, and (e)
obligations under direct or indirect guaranties in respect of, and obligations (contingent or
otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in
respect of, indebtedness or obligations of others of the kinds referred to in clauses (a)
through (d).

     “Declining Conduit Purchaser” has the meaning set forth in Section 1.4(b)(ii)
of this Agreement.

     “Declining Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Deemed Collections” has the meaning set forth in Section 1.4(e)(ii) of this
Agreement.

     “Default Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100 of 1%) computed as of the last day of each calendar month by dividing: (i) the aggregate
Outstanding Balance of all Pool Receivables that became Defaulted Receivables during such month
(other than Receivables that became Defaulted Receivables as a result of an Event of Bankruptcy
with respect to the Obligor thereof during such month) by (ii) the sum of (a) 75% of the aggregate
credit sales made by all the Originators during the calendar month that is seven months before such
month and (b) 25% of the aggregate credit sales made by all the Originators during the calendar
month that is nine months before such month.

I-5

 

     “Defaulted Receivable” means a Receivable:

     (a) as to which any payment, or part thereof, remains unpaid for more than 60 days from
the original due date for such payment, or

     (b) without duplication (i) as to which an Event of Bankruptcy shall have occurred with
respect to the Obligor thereof or any other Person obligated thereon or owning any Related
Security with respect thereto, or (ii) that has been written off the Seller’s books as
uncollectible.

     “Delinquency Ratio” means the ratio (expressed as a percentage and rounded to the
nearest 1/100 of 1%, with 5/1000th of 1% rounded upward) computed as of the last day of each
calendar month by dividing: (a) the aggregate Outstanding Balance of all Pool Receivables that were
Delinquent Receivables on such day by (b) the aggregate Outstanding Balance of all Pool Receivables
on such day.

     “Delinquent Receivable” means a Receivable as to which any payment, or part thereof,
remains unpaid for more than 60 days from the original due date for such payment.

     “Determination Date” means, with respect to any calendar month, the last Business Day
of such calendar month.

     “Dilution Horizon” means, for any calendar month, the ratio (expressed as a percentage
and rounded to the nearest 1/100th of 1%) computed as of the last day of such calendar month of:
(a) the aggregate credit sales made by all the Originators during the two most recent calendar
months, to (b) the Net Receivables Pool Balance at the last day of such calendar month.

     “Dilution Ratio” means the ratio (expressed as a percentage and rounded to the nearest
1/100th of 1%, with 5/1000th of 1% rounded upward), computed as of the last day of each calendar
month by dividing: (a) the aggregate amount of payments made or owed by the Seller pursuant to
Section 1.4(e)(i) of this Agreement (other than amounts related to the Specifically
Reserved Dilution Amount) during such calendar month by (b) the aggregate credit sales made by all
the Originators during the calendar month that is two months prior to such calendar month.

     “Dilution Reserve” means, on any day, an amount equal to: (a) the sum of the Aggregate
Capital plus the LC Participation Amount at the close of business of the Servicer on such day
multiplied by (b) (i) the Dilution Reserve Percentage on such day, divided
by (ii) 100% minus the Dilution Reserve Percentage on such day.

     “Dilution Reserve Percentage” means on any date, the greater of: (a) the Minimum
Dilution Reserve Percentage and (b) the product of (i) the Dilution Horizon multiplied by (ii) the
sum of (x) 2 times the average of the Dilution Ratios for the twelve most recent calendar months
and (y) the Dilution Spike Factor.

     “Dilution Spike Factor” means, for any calendar month, the product of (a) the positive
difference, if any, between: (i) the highest Dilution Ratio for any calendar month during the
twelve most recent calendar months and (ii) the arithmetic average of the Dilution Ratios for such
twelve months and (b) (i) the highest Dilution Ratio for any calendar month during the

I-6

 

twelve most recent calendar months, divided by (ii) the arithmetic average of the Dilution
Ratios for such twelve months.

     “Discount” means with respect to any Purchaser:

     (a) for any Portion of Capital for any Yield Period with respect to any Purchaser to
the extent such Portion of Capital will be funded by such Purchaser during such Yield Period
through the issuance of Notes:

CPR x C x ED/360 + YPF

     (b) for any Portion of Capital for any Yield Period with respect to any Purchaser to
the extent such Portion of Capital will not be funded by such Purchaser during such Yield
Period through the issuance of Notes or, if the LC Bank and/or any LC Participant has deemed
to have made a Funded Purchase in connection with any drawing under a Letter of Credit which
accrues Discount pursuant to Section 1.2(e) of this Agreement:

AR x C x ED/Year + YPF

     where:

	 	 	 	 	 
	AR 

	 	=
	 	the Alternate Rate for such Portion of Capital for such Yield
Period with respect to such Purchaser,
	 
	 	 	 	 
	C    

	 	=
	 	the Capital with respect to such Portion of Capital during
such Yield Period with respect to such Purchaser,
	 
	 	 	 	 
	CPR

	 	=
	 	the CP Rate for the Portion of Capital for such Yield Period
with respect to such Purchaser,
	 
	 	 	 	 
	ED  

	 	=
	 	the actual number of days during such Yield Period,
	 
	 	 	 	 
	Year

	 	=
	 	if such Portion of Capital is funded based upon: (i) the
Euro-Rate, 360 days, and (ii) the Base Rate, 365 or 366 days, as applicable,
and
	 
	 	 	 	 
	YPF 

	 	=
	 	the Yield Protection Fee, if any, for the Portion of Capital
for such Yield Period with respect to such Purchaser;

provided, that no provision of this Agreement shall require the payment or permit the
collection of Discount in excess of the maximum permitted by applicable law; and provided
further, that Discount for any Portion of Capital shall not be considered paid by any
distribution to the extent that at any time all or a portion of such distribution is rescinded or
must otherwise be returned for any reason.

     “Drawing Date” has the meaning set forth in Section 1.15(b) of the Agreement.

I-7

 

     “Eligible Assignee” means any bank or financial institution acceptable to the LC Bank
and the Administrator.

     “Eligible Foreign Obligor” means an Obligor which is a resident of any country (other
than the United States of America) that has a short-term foreign currency rating (or, if such
country does not have such a short-term foreign currency rating, a long-term foreign currency
rating) of at least “A-1” (or “A”) by Standard & Poor’s and “P-1” (or “A2”) by Moody’s.

     “Eligible Receivable” means, at any time, a Pool Receivable:

     (a) the Obligor of which is (i) a United States resident, a Canadian resident or an
Eligible Foreign Obligor ; provided that with respect to any Receivable the Obligor of which
is a Canadian resident or an Eligible Foreign Obligor, the Seller shall have taken all
actions, at its own expense, and shall have delivered (or caused to be delivered) to the
Administrator all further instruments, opinions and documents, that may be necessary or
desirable in the sole determination of the Administrator, as the Administrator may
reasonably request, to perfect, protect or more fully evidence such Receivable and the
security interest granted therein and in the Related Security and Collections with respect
thereto, or to enable the Administrator, any Purchaser Agent or any Purchaser to exercise
and enforce their respective rights and remedies under this Agreement, (ii) not subject to
any action of the type described in paragraph (f) of Exhibit V to this
Agreement and (iii) not an Affiliate of Cooper Tire or any Affiliate of Cooper Tire.

     (b) that is denominated and payable either (i) in U.S. dollars and the Obligor with
respect to which has been instructed on or prior to the Closing Date to remit Collections in
respect thereof to a Lock-Box Account in the United States of America or (ii) in Canadian
Dollars and the Obligor with respect to which has been instructed on or prior to the Closing
Date to remit Collections in respect thereof to the CAD Lock-Box Account, as the case may
be.

     (c) that does not have a stated maturity which is more than 180 days after the original
invoice date of such Receivable,

     (d) that arises under a duly authorized Contract for the sale and delivery of goods and
services in the ordinary course of an Originator’s business,

     (e) that arises under a duly authorized Contract that is in full force and effect and
that is a legal, valid and binding obligation of the related Obligor, enforceable against
such Obligor in accordance with its terms,

     (f) that conforms in all material respects with all applicable laws, rulings and
regulations in effect,

     (g) that is not the subject of any asserted dispute, offset, hold back, defense,
Adverse Claim or other claim,

I-8

 

     (h) that satisfies all applicable requirements of the applicable Credit and Collection
Policy,

     (i) that has not been modified, waived or restructured since its creation, except as
permitted pursuant to Section 4.2 of this Agreement,

     (j) in which the Seller owns good and marketable title, free and clear of any Adverse
Claims, and that is freely assignable by the Seller (including without any consent of the
related Obligor),

     (k) for which the Administrator (for the benefit of each Purchaser) shall have a valid
and enforceable undivided percentage ownership or security interest, to the extent of the
Purchased Interest, and a valid and enforceable first priority perfected security interest
therein and in the Related Security and Collections with respect thereto, in each case free
and clear of any Adverse Claim,

     (l) that constitutes an account as defined in the UCC, and that is not evidenced by
instruments or chattel paper,

     (m) that is not a Defaulted Receivable or a Delinquent Receivable,

     (n) for which none of the Originator thereof, the Seller and the Servicer has
established any offset arrangements with the related Obligor,

     (o) for which Defaulted Receivables of the related Obligor do not exceed 35% of the
Outstanding Balance of all such Obligor’s Receivables, and

     (p) that represents amounts earned and payable by the Obligor that are not subject to
the performance of additional services by the Originator thereof.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended from
time to time, and any successor statute of similar import, together with the regulations
thereunder, in each case as in effect from time to time. References to sections of ERISA also refer
to any successor sections.

     “ERISA Affiliate” means: (a) any corporation that is a member of the same controlled
group of corporations (within the meaning of Section 414(b) of the Internal Revenue Code) as the
Seller, any Originator or Cooper Tire, (b) a trade or business (whether or not incorporated) under
common control (within the meaning of Section 414(c) of the Internal Revenue Code) with the Seller,
any Originator or Cooper Tire, or (c) a member of the same affiliated service group (within the
meaning of Section 414(m) of the Internal Revenue Code) as the Seller, any Originator, any
corporation described in clause (a) or any trade or business described in clause
(b).

     “Euro-Rate” means with respect to any Yield Period, the interest rate per annum
determined by the applicable Purchaser Agent by dividing (the resulting quotient rounded upwards,
if necessary, to the nearest 1/100th of 1% per annum) (i) the rate of interest determined by such
Purchaser Agent in accordance with its usual procedures (which determination shall be

I-9

 

conclusive absent manifest error) to be the average of the London interbank market offered
rates for U.S. dollars quoted by the BBA as set forth on Dow Jones Markets Service (formerly known
as Telerate) (or appropriate successor or, if BBA or its successor ceases to provide display page
3750 (or such other display page on the Dow Jones Markets Service system as may replace display
page 3750) at or about 11:00 a.m. (London time) on the Business Day which is two (2) Business Days
prior to the first day of such Yield Period for an amount comparable to the Portion of Capital to
be funded at the Yield Rate and based upon the Euro-Rate during such Yield Period by (ii) a number
equal to 1.00 minus the Euro-Rate Reserve Percentage. The Euro-Rate may also be expressed by the
following formula:

	 	 	 	 	 
	 

	 	Average of London interbank offered rates quoted by BBA

as shown on Dow Jones Markets Service display page 3750

or appropriate successor	 	 
	Euro-Rate =

	 	 
 

	 	  
	 
	 	 	 	 
	 

	 	1.00 — Euro-Rate Reserve Percentage
	 	 

where “Euro-Rate Reserve Percentage” means, the maximum effective percentage in effect
on such day as prescribed by the Board of Governors of the Federal Reserve System (or any
successor) for determining the reserve requirements (including without limitation, supplemental,
marginal, and emergency reserve requirements) with respect to eurocurrency funding (currently
referred to as “Eurocurrency Liabilities”). The Euro-Rate shall be adjusted with respect to any
Portion of Capital funded at the Yield Rate and based upon the Euro-Rate that is outstanding on the
effective date of any change in the Euro-Rate Reserve Percentage as of such effective date. The
applicable Purchaser Agent shall give prompt notice to the Seller of the Euro-Rate as determined or
adjusted in accordance herewith (which determination shall be conclusive absent manifest error).

     “Event of Bankruptcy” means (a) any case, action or proceeding before any court or
other governmental authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors or (b) any general assignment for the
benefit of creditors of a Person or any composition, marshalling of assets for creditors of a
Person, or other similar arrangement in respect of its creditors generally or any substantial
portion of its creditors; in each of cases (a) and (b) undertaken under U.S. Federal, state or
foreign law, including the Bankruptcy Code.

     “Excess Concentration” means the sum of the amounts by which the Outstanding Balance
of Eligible Receivables of each Obligor then in the Receivables Pool exceeds an amount equal to the
sum of: (i) an amount equal to (a) the applicable Concentration Percentage for such Obligor
multiplied by (b) the Outstanding Balance of all Eligible Receivables then in the Receivables Pool,
plus (ii) the amount by which the aggregate Outstanding Balance of all Eligible Receivables of the
Group D Obligor with the largest Outstanding Balance of Receivables exceeds 50.0% of the aggregate
Outstanding Balance of all Eligible Receivables of the four Group D Obligors with the largest
Outstanding Balance of Receivables (after taking into account any deduction for amounts relating to
clause (i) of this definition), (iii) the amount by which the aggregate Outstanding Balance
of all Eligible Receivables then in the Receivables Pool that are denominated in Canadian Dollars
exceeds 10.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the
Receivables Pool, plus (iv) the amount by which the aggregate

I-10

 

Outstanding Balance of all Eligible Receivables then in the Receivables Pool the Obligor of
which is an Eligible Foreign Obligor exceeds 5.0% of the aggregate Outstanding Balance of all
Eligible Receivables then in the Receivables Pool, plus (v) the amount by which the aggregate
Outstanding Balance of all Eligible Receivables then in the Receivables Pool that have a stated
maturity which is more than 120 days but less than 181 days after the original invoice date of such
Receivable exceeds 25.0% of the aggregate Outstanding Balance of all Eligible Receivables then in
the Receivables Pool, plus (vi) the amount by which the aggregate Outstanding Balance of all
Eligible Receivables then in the Receivables Pool the Obligor of which is a governmental entity
exceeds 2.0% of the aggregate Outstanding Balance of all Eligible Receivables then in the
Receivables Pool.

     “Exiting Notice” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Exiting Purchaser” has the meaning set forth in Section 1.4(b)(ii) of this
Agreement.

     “Facility Termination Date” means the earliest to occur of: (a) with respect to each
Purchaser September 14, 2010, subject to any extension pursuant to Section 1.22 of this Agreement
(it being understood that if any such Purchaser does not extend its Commitment hereunder then the
Purchase Limit shall be reduced ratably with respect to the Purchasers in each Purchaser Group by
an amount equal to the Commitment of such Exiting Purchaser and the Commitment Percentages and
Group Commitments of the Purchasers within each Purchaser Group shall be appropriately adjusted),
(b) the date determined pursuant to Section 2.2 of this Agreement, (c) the date the Purchase Limit
reduces to zero pursuant to Section 1.1(c) of this Agreement, (d) with respect to each Purchaser
Group, the date that the commitments of all of the Liquidity Providers terminate under the related
Liquidity Agreement (it being understood and agreed that the date set forth in the related
Liquidity Agreement as the scheduled “purchase termination date” (or other similar term) shall not
be amended by the applicable Purchasers and the related Liquidity Providers to be a date earlier
than September 14, 2010), (e) with respect to each Purchaser Group, the date that the commitment,
of all of the Related Committed Purchasers of such Purchaser Group terminate pursuant to Section
1.22, (f) the date which is 60 days after the date on which the Administrator and each Purchaser
Agent has received written notice from the Seller of its election to terminate the Purchase
Facility and (g) the Seller shall fail to cause the amendment or modification of any Transaction
Document as reasonably requested by Moody’s or Standard & Poor’s, and such failure shall continue
for 30 days after such amendment or modification is initially requested.

     “Federal Funds Rate” means, for any day, the per annum rate set forth in the weekly
statistical release designated as H.15(519), or any successor publication, published by the Federal
Reserve Board (including any such successor, “H.15(519)”) for such day opposite the caption
“Federal Funds (Effective).” If on any relevant day such rate is not yet published in H.15(519),
the rate for such day will be the rate set forth in the daily statistical release designated as the
Composite 3:30 p.m. Quotations for U.S. Government Securities, or any successor publication,
published by the Federal Reserve Bank of New York (including any such successor, the “Composite
3:30 p.m. Quotations”) for such day under the caption “Federal Funds Effective Rate.” If on any
relevant day the appropriate rate is not yet published in either H.15(519) or the Composite 3:30
p.m. Quotations, the rate for such day will be the arithmetic mean as determined by the
Administrator of the rates for the last transaction in overnight Federal funds arranged

I-11

 

before 9:00 a.m. (New York City Time) on that day by each of three leading brokers of Federal
funds transactions in New York City selected by the Administrator.

     “Federal Reserve Board” means the Board of Governors of the Federal Reserve System, or
any entity succeeding to any of its principal functions.

     “Fees” means the fees payable by the Seller to each member of each Purchaser Group
pursuant to the applicable Purchaser Group Fee Letter.

     “Funded Purchase” shall mean a purchase or deemed purchase of undivided percentage
ownership interests in the Purchased Interest under the Agreement which (i) is paid for in cash,
including pursuant to Section 1.1(b) (other than through reinvestment of Collections pursuant to
Section 1.4(b) of the Agreement) or (ii) is treated as a Funded Purchase pursuant to Section 1.2(e)
of the Agreement.

     “GAAP” means the generally accepted accounting principles and practices in the United
States, consistently applied.

     “Governmental Authority” means any nation or government, any state or other political
subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any
body or entity exercising executive, legislative, judicial, regulatory or administrative functions
of or pertaining to government, including any court, and any Person owned or controlled, through
stock or capital ownership or otherwise, by any of the foregoing.

     “Group A Obligor” means any Obligor with a short-term rating of at least: (a) “A-1” by
Standard & Poor’s, or if such Obligor does not have a short-term rating from Standard & Poor’s, a
rating of “A+” or better by Standard & Poor’s on its long-term senior unsecured and
uncredit-enhanced debt securities, and (b) “P-1” by Moody’s, or if such Obligor does not
have a short-term rating from Moody’s, “A1” or better by Moody’s on its long-term senior unsecured
and uncredit-enhanced debt securities.

     “Group B Obligor” means an Obligor, not a Group A Obligor, with a short-term rating of
at least: (a) “A-2” by Standard & Poor’s, or if such Obligor does not have a short-term rating from
Standard & Poor’s, a rating of “BBB+” to “A” by Standard & Poor’s on its long-term senior unsecured
and uncredit-enhanced debt securities, and (b) “P-2” by Moody’s, or if such Obligor does
not have a short-term rating from Moody’s, “Baa1” to “A2” by Moody’s on its long-term senior
unsecured and uncredit-enhanced debt securities.

     “Group C Obligor” means an Obligor, not a Group A Obligor or Group B Obligor, with a
short-term rating of at least: (a) “A-3” by Standard & Poor’s, or if such Obligor does not have a
short-term rating from Standard & Poor’s, a rating of “BBB-” to “BBB” by Standard & Poor’s on its
long-term senior unsecured and uncredit-enhanced debt securities, and (b) “P-3” by Moody’s,
or if such Obligor does not have a short-term rating from Moody’s, “Baa3” to “Baa2” by Moody’s on
its long-term senior unsecured and uncredit-enhanced debt securities.

     “Group Capital” means with respect to any Purchaser Group, an amount equal to the
aggregate of all Capital of the Purchasers within such Purchaser Group.

I-12

 

     “Group Commitment” means with respect to any Purchaser Group the aggregate of the
Commitments of each Purchaser within such Purchaser Group, which amount is set forth on the
signature pages hereto.

     “Group D Obligor” means any Obligor that is not a Group A Obligor, Group B Obligor or
Group C Obligor.

     “Indemnified Amounts” has the meaning set forth in Section 3.1 of this
Agreement.

     “Indemnified Party” has the meaning set forth in Section 3.1 of this
Agreement.

     “Independent Director” has the meaning set forth in paragraph 3(c) of
Exhibit IV to this Agreement.

     “Information Package” means each report, in substantially the form of Annex A
to this Agreement, furnished by or on behalf of the Servicer to the Administrator and each
Purchaser Agent pursuant to this Agreement.

     “Insolvency Proceeding” means: (a) any case, action or proceeding before any court or
other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation,
receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors, composition, marshaling of assets for creditors, or other similar arrangement
in respect of its creditors generally or any substantial portion of its creditors, in each case
undertaken under U.S. Federal, state or foreign law, including the Bankruptcy Code.

     “Intercreditor Agreement” means any intercreditor agreement entered into by PNC in its
capacity as Administrator under the Agreement.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time
to time, and any successor statute of similar import, together with the regulations thereunder, in
each case as in effect from time to time. References to sections of the Internal Revenue Code also
refer to any successor sections.

     “ISP98 Rules” has the meaning set forth in Section 1.13(b) of the Agreement.

     “LC Bank” has the meaning set forth in the preamble to the Agreement.

     “LC Collateral Account” means the account designated as the LC Collateral Account
established and maintained by the Administrator (for the benefit of the LC Bank and the LC
Participants), or such other account as may be so designated as such by the Administrator.

     “LC Participant” has the meaning set forth in the preamble to the Agreement.

     “LC Participation Amount” shall mean, at any time, the then aggregate undrawn face
amount of all outstanding Letters of Credits.

     “Letter of Credit” shall mean any stand-by letter of credit issued by the LC Bank for
the account of the Seller pursuant to the Agreement.

I-13

 

     “Letter of Credit Application” has the meaning set forth in Section 1.13(a) of the
Agreement.

     “Liquidity Agent” means each of the banks acting as agent for the various Liquidity
Providers under each Liquidity Agreement.

     “Liquidity Agreement” means any agreement entered into in connection with this
Agreement pursuant to which a Liquidity Provider agrees to make purchases or advances to, or
purchase assets from, any Conduit Purchaser in order to provide liquidity for such Conduit
Purchaser’s Purchases.

     “Liquidity Provider” means each bank or other financial institution that provides
liquidity support to any Conduit Purchaser pursuant to the terms of a Liquidity Agreement.

     “Lock-Box Account” means each account listed on Schedule II to this Agreement
and maintained at a bank or other financial institution acting as a Lock-Box Bank pursuant to a
Lock-Box Agreement for the purpose of receiving Collections.

     “Lock-Box Agreement” means an agreement, among the Seller, the Servicer, a Lock-Box
Bank and the Administrator, governing the terms of the related Lock-Box Accounts, in each case
acceptable to the Administrator.

     “Lock-Box Bank” means any of the banks or other financial institutions holding one or
more Lock-Box Accounts.

     “Loss Reserve” means, on any date, an amount equal to (a) the sum of the Aggregate
Capital plus the LC Participation Amount at the close of business of the Servicer on such date
multiplied by (b)(i) the Loss Reserve Percentage on such date divided by (ii) 1, minus the Loss
Reserve Percentage on such date.

     “Loss Reserve Percentage” means, on any date, an amount equal to (a) the product of
(i) two times the highest average of the Default Ratios for any three consecutive calendar months
during the twelve most recent calendar months multiplied by (ii) the aggregate credit sales made by
all Originators during the seven most recent calendar months, multiplied by (iii) 25% of the
aggregate credit sales made by all Originators during the eighth and ninth most recent calendar
months, divided by (b) the Net Receivables Pool Balance as of such date.

     “Majority LC Participants” shall mean LC Participants whose Pro Rata Shares aggregate
51% or more.

     “Majority Purchaser Agents” means, at any time, the Purchaser Agents which in their
related Purchaser Group have Related Committed Purchasers whose Commitments aggregate more than 50%
of the aggregate of the Commitments of all Related Committed Purchasers in all Purchaser Groups;
provided, however, that so long as any one Related Committed Purchaser’s Commitment
is greater than 50% of the aggregate Commitments and there is more than one Purchaser Group, then
“Majority Purchaser Agents” shall mean a minimum of two Purchaser Agents which in their related
Purchaser Group have Related Committed Purchasers whose

I-14

 

Commitments aggregate more than 50% of the aggregate Commitment of all Related Committed
Purchasers in all Purchaser Groups.

     “Material Adverse Effect” means, relative to any Person with respect to any event or
circumstance, a material adverse effect on:

     (a) the assets, operations, business or financial condition of an Originator, the
Performance Guarantor, the Seller or the Servicer,

     (b) the ability of any of an Originator, the Performance Guarantor, the Seller or
Servicer to perform its obligations under this Agreement or any other Transaction Document
to which it is a party,

     (c) the validity or enforceability of any of the Transaction Documents, or the
validity, enforceability or collectibility of the Pool Receivables, or

     (d) the status, perfection, enforceability or priority of the Administrator’s, any
Purchaser’s or the Seller’s interest in the Pool Assets.

     “Minimum Dilution Reserve” means at any time, the product of (a) the Aggregate Capital
plus, and (b)(i) the Minimum Dilution Reserve Percentage divided by (ii) 1 minus the Minimum
Dilution Reserve Percentage.

     “Minimum Dilution Reserve Percentage” means, at any time, the product of (a) the
12-month rolling average of the Dilution Ratio at such time multiplied by (b) the Dilution Horizon.

     “Moody’s” means Moody’s Investors Service, Inc.

     “Net Receivables Pool Balance” means, at any time: (a) the Outstanding Balance of
Eligible Receivables then in the Receivables Pool minus (b) the Excess Concentration.

     “Notes” means short-term promissory notes issued, or to be issued, by any Conduit
Purchaser to fund its investments in accounts receivable or other financial assets.

     “Obligor” means, with respect to any Receivable, the Person obligated to make payments
pursuant to the Contract relating to such Receivable.

     “Order’ has the meaning set forth in Section 1.21 of the Agreement.

     “Original Agreement” has the meaning set forth in the preliminary statements of the
Agreement.

     “Original Agreement Outstanding Amounts” has the meaning set forth in the preliminary
statements of the Agreement.

     “Originator” means each Person from time to time party to the Sale Agreement as an
Originator.

I-15

 

     “Outstanding Balance” of any Receivable at any time means the then outstanding
principal balance thereof; provided, that any amounts denominated and payable in Canadian
Dollars shall be deemed to be the U.S. Dollar Equivalent of such amount at the time of
determination thereof.

     “Participant” has the meaning set forth in Section 6.3(b) of this Agreement.

     “Pep Boys Receivables” means accounts receivable that arise out of the sale of goods
and services by Cooper Tire to The Pep Boys — Manny, Moe and Jack (Company) and all proceeds and
other rights with respect to such accounts receivable, including any rights under any
acknowledgment or confirmation by the related obligor with respect to such accounts receivable.

     “Performance Guaranty” means the Performance Guaranty, dated as of the Closing Date,
by Cooper Tire, as performance guarantor, in favor of the Administrator for the benefit of the
Purchasers and Purchaser Agents, as the same may be amended, restated, supplemented or otherwise
modified from time to time.

     “Person” means an individual, partnership, corporation (including a business trust),
joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof.

     “PNC” means PNC Bank, National Association.

     “Pool Assets” has the meaning set forth in Section 1.2(d) of this Agreement.

     “Pool Receivable” means a Receivable in the Receivables Pool.

     “Portion of Capital” means, with respect to any Purchaser and its related Capital, the
portion of such Capital being funded or maintained by such Purchaser by reference to a particular
interest rate basis.

     “Pro Rata Share” shall mean, as to any LC Participant or LC Bank, a fraction, the
numerator of which equals the Commitment of such LC Participant or LC Bank at such time and the
denominator of which equals the aggregate of the Commitments of all LC Participants in such LC
Participant’s related Purchaser Group and the LC Bank at such time.

     “Program Support Agreement” means and includes any Liquidity Agreement and any other
agreement entered into by any Program Support Provider providing for: (a) the issuance of one or
more letters of credit for the account of any Conduit Purchaser, (b) the issuance of one or more
surety bonds for which the such Conduit Purchaser is obligated to reimburse the applicable Program
Support Provider for any drawings thereunder, (c) the sale by such Conduit Purchaser to any Program
Support Provider of the Purchased Interest (or portions thereof) maintained by such Conduit
Purchaser and/or (d) the making of loans and/or other extensions of credit to any Conduit Purchaser
in connection with such Conduit Purchaser’s securitization program contemplated in this Agreement,
together with any letter of credit, surety bond or other instrument issued thereunder.

I-16

 

     “Program Support Provider” means and includes with respect to each Conduit Purchaser
any Liquidity Provider and any other Person (other than any customer of such Conduit Purchaser) now
or hereafter extending credit or having a commitment to extend credit to or for the account of, or
to make purchases from, such Conduit Purchaser pursuant to any Program Support Agreement.

     “Purchase” has the meaning set forth in Section 1.1(a) of this Agreement.

     “Purchase and Sale Indemnified Amounts” has the meaning set forth in Section
9.1 of the Sale Agreement.

     “Purchase and Sale Indemnified Party” has the meaning set forth in Section 9.1
of the Sale Agreement.

     “Purchase and Sale Termination Date” has the meaning set forth in Section 1.4
of the Sale Agreement.

     “Purchase and Sale Termination Event” has the meaning set forth in Section 8.1
of the Sale Agreement.

     “Purchase Date” means the date of which a Purchase or a reinvestment is made pursuant
to this Agreement.

     “Purchase Facility” has the meaning set forth in Section 1.1 of the Sale
Agreement.

     “Purchase Limit” means $125,000,000, as such amount may be reduced pursuant to
Section 1.1(b) of this Agreement or otherwise in connection with any Exiting Purchaser.
References to the unused portion of the Purchase Limit shall mean, at any time, the Purchase Limit
minus the sum of the then outstanding Aggregate Capital plus the LC Participation Amount.

     “Purchase Notice” has the meaning set forth in Section 1.2(a) to this
Agreement.

     “Purchase Price” has the meaning set forth in Section 2.1 of the Sale
Agreement.

     “Purchased Interest” means, at any time, the undivided percentage ownership interest
in: (a) each and every Pool Receivable now existing or hereafter arising, (b) all Related Security
with respect to such Pool Receivables and (c) all Collections with respect to, and other proceeds
of, such Pool Receivables and Related Security. Such undivided percentage interest shall be
computed as:

Aggregate Capital + LC Participation Amount + Total Reserves

Net Receivables Pool Balance

The Purchased Interest shall be determined from time to time pursuant to Section 1.3 of
this Agreement.

I-17

 

     “Purchaser” means each Conduit Purchaser, each Related Committed Purchaser, each LC
Participant and/or the LC Bank, as applicable.

     “Purchaser Agent” means each Person acting as agent on behalf of a Purchaser Group and
designated as a Purchaser Agent for such Purchaser Group on the signature pages to this Agreement
or any other Person who becomes a party to this Agreement as a Purchaser Agent pursuant to an
Assumption Agreement or a Transfer Supplement.

     “Purchaser Group” means, for any Conduit Purchaser, such Conduit Purchaser, its
Related Committed Purchaser, related Purchaser Agent, related LC Participants and, in the case of
Market Street Funding LLC as a Conduit Purchaser, the LC Bank.

     “Purchaser Group Fee Letter” has the meaning set forth in Section 1.5 of this
Agreement.

     “Purchasers’ Share” of any amount, at any time, means such amount multiplied by the
Purchased Interest at such time.

     “Purchasing Related Committed Purchaser” has the meaning set forth in Section
6.3(c) of this Agreement.

     “Ratable Share” means, for each Purchaser Group, such Purchaser Group’s aggregate
Commitments divided by the aggregate Commitments of all Purchaser Groups.

     “Rating Agency Condition” means, when applicable, with respect to any material event
or occurrence, receipt by the Administrator (or the applicable Purchaser Agent) of written
confirmation from each of Standard & Poor’s and Moody’s (and/or each other rating agency then
rating the Notes of the applicable Conduit Purchaser) that such event or occurrence shall not cause
the rating on the then outstanding Notes of any applicable Purchaser to be downgraded or withdrawn.

     “Receivable” means any indebtedness and other obligations owed to any Originator or
the Seller or any right of the Seller or any Originator to payment from or on behalf of an Obligor
or any right to reimbursement for funds paid or advanced by the Seller or any Originator on behalf
of an Obligor, whether constituting an account, chattel paper, payment intangible, instrument or
general intangible, however arising (whether or not earned by performance), and includes, without
limitation, the obligation to pay any finance charges, fees and other charges with respect thereto;
provided, that, the term Receivable shall not include Pep Boys Receivables.
Indebtedness and other obligations arising from any one transaction, including, without limitation,
indebtedness and other obligations represented by an individual invoice or agreement, shall
constitute a Receivable separate from a Receivable consisting of the indebtedness and other
obligations arising from any other transaction.

     “Receivables Pool” means, at any time, all of the then outstanding Receivables
purchased by the Seller pursuant to the Sale Agreement prior to the Facility Termination Date.

     “Reimbursement Obligation” has the meaning set forth in Section 1.15(b) of the
Agreement.

I-18

 

     “Related Committed Purchaser” means each Person listed as such (and its respective
Commitment) for each Conduit Purchaser as set forth on the signature pages of this Agreement or in
any Assumption Agreement or Transfer Supplement.

     “Related Rights” has the meaning set forth in Section 1.1 of the Sale
Agreement.

     “Related Security” means, with respect to any Receivable:

     (a) all of the Seller’s and the Originator thereof’s interest in any goods (including
returned goods), and documentation of title evidencing the shipment or storage of any goods
(including returned goods), the sale of which gave rise to such Receivable,

     (b) all instruments and chattel paper that may evidence such Receivable,

     (c) all other security interests or liens and property subject thereto from time to
time purporting to secure payment of such Receivable, whether pursuant to the Contract
related to such Receivable or otherwise, together with all UCC financing statements or
similar filings relating thereto,

     (d) solely to the extent applicable to such Receivable, all of the Seller’s and the
Originator thereof’s rights, interests and claims under the Contracts relating to such
Receivable, and all guaranties, indemnities, insurance and other agreements (including the
related Contract) or arrangements of whatever character from time to time supporting or
securing payment of such Receivable or otherwise relating to such Receivable, whether
pursuant to the Contract related to such Receivable or otherwise, and

     (e) all of the Seller’s rights, interests and claims under the Sale Agreement and the
other Transaction Documents.

     “Required LC Participants” means the LC Participants whose Pro Rata Shares aggregate
662/3% or more.

     “Restricted Payments” has the meaning set forth in Section 1(o) of Exhibit IV to the
Agreement.

     “Sale Agreement” means the Purchase and Sale Agreement, dated as of the Closing Date
among the Seller and the Originators, as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time.

     “Seller” has the meaning set forth in the preamble to this Agreement.

     “Seller’s Share” of any amount means the greater of: (a) $0 and (b) such amount minus
the product of (i) such amount multiplied by (ii) the Purchased Interest.

     “Servicer” has the meaning set forth in the preamble to this Agreement.

     “Servicing Fee” shall mean the fee referred to in Section 4.6 of this
Agreement.

I-19

 

     “Servicing Fee Rate” shall have the meaning set forth in Section 4.6 of this
Agreement.

     “Settlement Date” means the 18th day of each calendar month (or if such day
is not a Business Day, the next occurring Business Day); provided, however, that on
and after the occurrence and continuation of any Termination Event, the Settlement Date shall be
the date selected as such by the Administrator (with the consent or at the direction of the
Majority Purchaser Agents) from time to time (it being understood that the Administrator
(with the consent or at the direction of the Majority Purchaser Agents) may select such Settlement
Date to occur as frequently as daily) or, in the absence of any such selection, the date which
would be the Settlement Date pursuant to this definition.

     “Specifically Reserved Dilution Amount” means, at any time of determination, the sum
of (i) the “Cooper Tire Volume Rebate Liability”, which shall equal the amount recorded on the
books and records of Cooper Tire as the aggregate accrued liability for future volume rebate
payments of all Originators at such time and (ii) the “Cooper Tire Marketing and Merchandising
Reserve”, which shall equal the amount recorded on the books and records of Cooper Tire as the
aggregate accrued liability for marketing and merchandising customer incentive payments for all
Originators at such time.

     “Spot Rate” has the meaning set forth in the definition of “U.S. Dollar Equivalent”.

     “Solvent” means, with respect to any Person at any time, a condition under which:

     (i) the fair value and present fair saleable value of such Person’s total assets is, on
the date of determination, greater than such Person’s total liabilities (including
contingent and unliquidated liabilities) at such time;

     (ii) the fair value and present fair saleable value of such Person’s assets is greater
than the amount that will be required to pay such Person’s probable liability on its
existing debts as they become absolute and matured (“debts,” for this purpose,
includes all legal liabilities, whether matured or unmatured, liquidated or unliquidated,
absolute, fixed, or contingent);

     (iii) such Person is and shall continue to be able to pay all of its liabilities as
such liabilities mature; and

     (iv) such Person does not have unreasonably small capital with which to engage in its
current and in its anticipated business.

     For purposes of this definition:

     (A) the amount of a Person’s contingent or unliquidated liabilities at any time shall
be that amount which, in light of all the facts and circumstances then existing, represents
the amount which can reasonably be expected to become an actual or matured liability;

I-20

 

     (B) the “fair value” of an asset shall be the amount which may be realized within
a reasonable time either through collection or sale of such asset at its regular market
value;

     (C) the “regular market value” of an asset shall be the amount which a capable and
diligent business person could obtain for such asset from an interested buyer who is willing
to Purchase such asset under ordinary selling conditions; and

     (D) the “present fair saleable value” of an asset means the amount which can be
obtained if such asset is sold with reasonable promptness in an arm’s-length transaction in
an existing and not theoretical market.

     “Standard & Poor’s” means Standard & Poor’s, a division of The McGraw-Hill Companies,
Inc.

     “Sub-Servicer” has the meaning set forth in Section 4.1(d) of this Agreement.

     “Subsidiary” means, as to any Person, a corporation, partnership, limited liability
company or other entity of which shares of stock of each class or other interests having ordinary
voting power (other than stock or other interests having such power only by reason of the happening
of a contingency) to elect a majority of the Board of Directors or other managers of such entity
are at the time owned, or management of which is otherwise controlled: (a) by such Person, (b) by
one or more Subsidiaries of such Person or (c) by such Person and one or more Subsidiaries of such
Person.

     “Tangible Net Worth” means, with respect to any Person, the tangible net worth of such
Person as determined in accordance with GAAP.

     “Taxes” means, with respect to any Person, all taxes, charges, fees, levies or other
assessments (including income, gross receipts, profits, withholding, excise, property, sales, use,
license, occupation and franchise taxes and including any related interest, penalties or other
additions) imposed by any jurisdiction or taxing authority (whether foreign or domestic) under the
laws of which such Person is organized.

     “Termination Day” means: (a) each day on which the conditions set forth in Section
2 of Exhibit II to this Agreement are not satisfied or (b) each day that occurs on or
after the Facility Termination Date.

     “Termination Event” has the meaning specified in Exhibit V to this Agreement.

     “Total Reserves” means, at any time the sum of: (a) the Yield Reserve, plus (b) the
Specifically Reserved Dilution Amount, plus (c) the Canadian Currency Volatility Reserve, plus (d)
the greater of (i) the sum of the Loss Reserve plus the Dilution Reserve and (ii) the sum of the
Minimum Dilution Reserve plus the Concentration Reserve.

     “Transaction Documents” means this Agreement, the Lock-Box Agreements, each Purchaser
Group Fee Letter, the Sale Agreement, the Performance Guaranty, any Intercreditor Agreement and all
other certificates, instruments, reports, notices, agreements and documents

I-21

 

executed or delivered under or in connection with this Agreement, in each case as the same may
be amended, amended and restated, supplemented or otherwise modified from time to time in
accordance with the terms thereof.

     “Transfer Supplement” has the meaning set forth in Section 6.3(c) of this
Agreement.

     “UCC” means the Uniform Commercial Code as from time to time in effect in the
applicable jurisdiction.

     “UCP Rules” has the meaning set forth in Section 1.13(b) of the Agreement.

     “Unmatured Purchase and Sale Termination Event” means any event which, with the giving
of notice or lapse of time, or both, would become a Purchase and Sale Termination Event.

     “Unmatured Termination Event” means an event that, with the giving of notice or lapse
of time, or both, would constitute a Termination Event.

     “U.S. Dollar Equivalent” means, at any date and with respect to a specified amount
denominated in Canadian Dollars for which a determination thereof is to be made, the U.S. dollar
equivalent of such specified amount of Canadian Dollars using the market exchange rate for purchase
of currency published in the Wall Street Journal on such day, or if not published, as published by
PNC Bank, National Association’s foreign exchange desk (the “Spot Rate”) on the immediately
preceding Determination Date.

     “Yield Period” means (a) with respect to any Portion of Capital funded by the issuance
of Notes, (i) initially the period commencing on (and including) the date of the initial purchase
or funding of such Portion of Capital and ending on (but not including) the next occurring
Settlement Date, and (ii) thereafter, each period commencing on (and including) the first day after
the last day of the immediately preceding Yield Period for such Portion of Capital and ending on
(but not including) the next occurring Settlement Date; and (b) with respect to any Portion of
Capital not funded by the issuance of Notes, (i) initially the period commencing on (and including)
the date of the initial purchase or funding of such Portion of Capital and ending such number of
days later (including a period of one day) as the Administrator (with the consent or at the
direction of the applicable Purchaser Agent) shall select, and (ii) thereafter, each period
commencing on the last day of the immediately preceding Yield Period for such Portion of Capital
and ending such number of days later (including a period of one day) as the Administrator (with the
consent or at the direction of the applicable Purchaser Agent) shall select; provided, that

     (i) any Yield Period (other than of one day) which would otherwise end on a day which
is not a Business Day shall be extended to the next succeeding Business Day;
provided, however, if Discount in respect of such Yield Period is computed
by reference to the Euro-Rate, and such Yield Period would otherwise end on a day which is
not a Business Day, and there is no subsequent Business Day in the same calendar month as
such day, such Yield Period shall end on the next preceding Business Day;

     (ii) in the case of any Yield Period of one day, (A) if such Yield Period is the
initial Yield Period for a purchase hereunder (other than a reinvestment), such Yield

I-22

 

Period shall be the day of such purchase; (B) any subsequently occurring Yield Period
which is one day shall, if the immediately preceding Yield Period is more than one day, be
the last day of such immediately preceding Yield Period, and, if the immediately preceding
Yield Period is one day, be the day next following such immediately preceding Yield Period;
and (C) if such Yield Period occurs on a day immediately preceding a day which is not a
Business Day, such Yield Period shall be extended to the next succeeding Business Day; and

     (iii) in the case of any Yield Period for any Portion of Capital which commences before
the Facility Termination Date and would otherwise end on a date occurring after the Facility
Termination Date, such Yield Period shall end on such Facility Termination Date and the
duration of each Yield Period which commences on or after the Facility Termination Date
shall be of such duration as shall be selected by the Administrator (with the consent or at
the direction of the applicable Purchaser Agent).

     “Yield Protection Fee” means, for any Yield Period, with respect to any Portion of
Capital, to the extent that (i) any payments are made by the Seller to the related Purchaser in
respect of such Capital hereunder prior to the applicable maturity date of any Notes or other
instruments or obligations used or incurred by such Purchaser to fund or maintain such Portion of
Capital or (ii) any failure by the Seller to borrow, continue or prepay any Portion of Capital on
the date specified in any Purchase Notice delivered pursuant to Section 1.2 of this
Agreement, the amount, if any, by which: (a) the additional Discount related to such Portion of
Capital that would have accrued through the maturity date of such Notes or other instruments on the
portion thereof for which payments were received from the Seller (or with respect to which the
Seller failed to borrow such amounts), exceeds (b) the income, if any, received by such Purchaser
from investing the proceeds so received in respect of such Portion of Capital, as determined by the
applicable Purchaser Agent, which determination shall be binding and conclusive for all purposes,
absent manifest error.

     “Yield Reserve” means, on any date, an amount equal to (a) the sum of the Aggregate
Capital plus the LC Participation Amount at the close of business of the Servicer on such date
multiplied by (b)(i) the Yield Reserve Percentage on such date divided by (ii) 1, minus the Yield
Reserve Percentage on such date.

     “Yield Reserve Percentage” means, at any time the sum of (a) all accrued and unpaid
Discount at such time, plus (b) the following amount:

	 	 	 	 
	 	{	(BR + SFR)	x 1.5(DSO) x Aggregate Capital} 
	 	 	 360 	 

	 	 	 	 	 	 	 	 	 
	     where:

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	BR
	 	=
	 	the Base Rate in effect at such time,
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	DSO
	 	=
	 	the Days’ Sales Outstanding, and
	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	SFR
	 	=
	 	Servicing Fee Rate.
	 	 

I-23

 

     Other Terms. (a) All accounting terms not specifically defined herein shall be
construed in accordance with generally accepted accounting principles. All terms used in Article 9
of the UCC in the State of New York, and not specifically defined herein, are used herein as
defined in such Article 9. Unless the context otherwise requires, “or” means “and/or,” and
“including” (and with correlative meaning “include” and “includes”) means including without
limiting the generality of any description preceding such term, and (b) any reference in any
Transaction Document to any monetary amount (other than an amount denominated in U.S. dollars)
shall mean the U.S. Dollar Equivalent of such monetary amount at the time of determination thereof.

I-24

 

EXHIBIT II

CONDITIONS OF PURCHASES

     1. Conditions Precedent to Effectiveness of Amendment and Restatement of Original
Agreement. The effectiveness of this Agreement is subject to the following conditions
precedent that the Administrator and each Purchaser Agent shall have received on or before the date
of such Purchase, each in form and substance (including the date thereof) satisfactory to the
Administrator and each Purchaser Agent:

     (a) A counterpart of this Agreement and the other Transaction Documents executed by the
parties thereto.

     (b) Certified copies of: (i) the resolutions of the Board of Directors of each of the Seller,
the Originators and the Servicer authorizing the execution, delivery and performance by the Seller,
such Originator and the Servicer, as the case may be, of this Agreement and the other Transaction
Documents to which it is a party; (ii) all documents evidencing other necessary corporate action
and governmental approvals, if any, with respect to this Agreement and the other Transaction
Documents and (iii) the organizational documents of the Seller, each Originator and the Servicer.

     (c) A certificate of the Secretary or Assistant Secretary of the Seller, the Originators and
the Servicer certifying the names and true signatures of its officers who are authorized to sign
this Agreement and the other Transaction Documents to which it is a party. Until the Administrator
and each Purchaser Agent receives a subsequent incumbency certificate from the Seller, an
Originator or the Servicer, as the case may be, the Administrator and each Purchaser Agent shall be
entitled to rely on the last such certificate delivered to it by the Seller, such Originator or the
Servicer, as the case may be.

     (d) Favorable opinions, addressed to each Rating Agency, the Administrator, each Purchaser,
each Purchaser Agent and each Liquidity Provider, in form and substance reasonably satisfactory to
the Administrator and each Purchaser Agent, of Shumaker, Loop & Kendrick, LLP, counsel for Seller,
the Originators and the Servicer, covering such matters as the Administrator or any Purchaser Agent
may reasonably request, including, without limitation, organizational and enforceability matters,
certain bankruptcy matters, certain UCC perfection and priority matters.

     (e) Satisfactory results of a review and audit (performed by representatives of the
Administrator) of the Servicer’s collection, operating and reporting systems, the Credit and
Collection Policy of each Originator, historical receivables data and accounts, including
satisfactory results of a review of the Servicer’s operating location(s) and satisfactory review
and approval of the Eligible Receivables in existence on the date of the initial purchase under
this Agreement.

     (f) A pro forma Information Package representing the performance of the Receivables Pool for
the calendar month before closing.

     (g) Evidence of payment by the Seller of all accrued and unpaid fees (including those
contemplated by each Purchaser Group Fee Letter), costs and expenses to the extent then due and

II-1

 

payable on the date thereof, including any such costs, fees and expenses arising under or
referenced in Section 6.4 of this Agreement and the applicable Purchaser Group Fee Letters.

     (h) Good standing certificates with respect to each of the Seller, the Originators and the
Servicer issued by the Secretary of State (or similar official) of the state of each such Person’s
organization or formation and principal place of business.

     (i) To the extent required by each Conduit Purchaser’s commercial paper program, letters from
each of the rating agencies then rating the Notes confirming the rating of such Notes after giving
effect to the transaction contemplated by this Agreement.

     (j) A computer file containing all information with respect to the Receivables as the
Administrator or any Purchaser Agent may reasonably request.

     (k) Such other approvals, opinions or documents as the Administrator or any Purchaser Agent
may reasonably request.

     2. Conditions Precedent to All Funded Purchases and Issuance of Letters of Credit.
Each Funded Purchase, including the initial Funded Purchase (but excluding any deemed Funded
Purchase pursuant to Section 1.2(e)) and issuance of any Letters of Credit shall be subject
to the further conditions precedent that:

     (a) in the case of each Funded Purchase and the issuance of any Letters of Credit, the
Servicer shall have delivered to the Administrator and each Purchaser Agent on or before such
purchase or issuance, as the case may be, in form and substance satisfactory to the Administrator
and each Purchaser Agent, the most recent Information Package to reflect the level of the Aggregate
Capital, the LC Participation Amount and related reserves after such subsequent purchase or
issuance, as the case may be; and

     (b) on the date of such Funded Purchase or issuance, as the case may be, the following
statements shall be true (and acceptance of the proceeds of such Funded Purchase or issuance shall
be deemed a representation and warranty by the Seller that such statements are then true):

     (i) the representations and warranties contained in Exhibit III to this
Agreement are true and correct in all material respects on and as of the date of such Funded
Purchase or issuance, as the case may be, as though made on and as of such date except for
representations and warranties which apply as to an earlier date (in which case such
representations and warranties shall be true and correct as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such Funded Purchase
or issuance, as the case may be, that constitutes a Termination Event or an Unmatured
Termination Event;

     (iii) the sum of the Aggregate Capital plus the LC Participation Amount, after giving
effect to any such Funded Purchase or issuance, as the case may be, shall not be greater
than the Purchase Limit, and the Purchased Interest shall not exceed 100%; and

II-2

 

     (iv) the Facility Termination Date has not occurred.

II-3

 

EXHIBIT III

REPRESENTATIONS AND WARRANTIES

     1. Representations and Warranties of the Seller. The Seller represents and warrants
to the Administrator, each Purchaser Agent and each Purchaser as of the date of execution of this
Agreement that:

     (a) Existence and Power. The Seller is a limited liability company duly organized,
validly existing and in good standing under the laws of Delaware, and has all organizational power
and all governmental licenses, authorizations, consents and approvals required to carry on its
business in each jurisdiction in which its business is conducted.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Seller of this Agreement and each other Transaction Document to which it is
a party are within the Seller’s organizational powers, have been duly authorized by all necessary
organizational action, require no action by or in respect of, or filing with (other than the filing
of UCC financing statements and continuation statements), any governmental body, agency or
official, and, do not contravene, or constitute a default under, any provision of applicable law or
regulation or of the operating agreement of the Seller or of any agreement, judgment, injunction,
order, decree or other instrument binding upon the Seller or result in the creation or imposition
of any lien (other than liens in favor of the Administrator) on assets of the Seller.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Seller
enforceable against the Seller in accordance with its respective terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws
affecting the enforcement of creditors’ rights generally and by general principles of equity,
regardless of whether enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Seller to
the Administrator or any Purchaser Agent pursuant to or in connection with this Agreement or any
other Transaction Document is, and all such information hereafter furnished by the Seller to the
Administrator or any Purchaser Agent in writing pursuant to this Agreement or any Transaction
Document will be, true and accurate in all material respects on the date such information is stated
or certified.

     (e) Actions, Suits. There are no actions, suits or proceedings pending or, to the
best of the Seller’s knowledge, threatened against or affecting the Seller or any of its Affiliates
or their respective properties, in or before any court, arbitrator or other body.

     (f) Accuracy of Exhibits; Lock-Box Arrangements. The names and addresses of all the
Lock-Box Banks together with the account numbers of the Lock-Box Accounts at such Lock-Box Banks,
are specified in Schedule II to this Agreement (or at such other Lock-Box Banks and/or with
such other Lock-Box Accounts as have been notified to the Administrator), and all Lock-Box Accounts
are subject to Lock-Box Agreements. All information on each Exhibit, Schedule or Annex to this
Agreement or the other Transaction Documents (as updated by the

III-1

 

Seller from time to time) is true and complete. The Seller has delivered a copy of all
Lock-Box Agreements to the Administrator. The Seller has not granted any interest in any Lock-Box
Account (or any related lock-box or post office box) to any Person other than the Administrator
and, upon delivery to a Lock-Box Bank of the related Lock-Box Agreement, the Administrator will
have exclusive ownership and control of the Lock-Box Account at such Lock-Box Bank.

     (g) No Material Adverse Effect. Since the date of formation of Seller as set forth in
its certificate of formation, there has been no Material Adverse Effect.

     (h) Names and Location. The Seller has not used any company names, trade names or
assumed names other than its name set forth on the signature pages of this Agreement. The Seller is
“located” (as such term is defined in the applicable UCC) in Delaware. The office where the Seller
keeps its records concerning the Receivables is at the address set forth below its signature to
this Agreement.

     (i) Margin Stock. The Seller is not engaged in the business of extending credit for
the purpose of purchasing or carrying margin stock (within the meaning of Regulations T, U and X,
as issued by the Board of Governors of the Federal Reserve System), and no proceeds of any Purchase
will be used to purchase or carry any margin stock or to extend credit to others for the purpose of
purchasing or carrying any margin stock.

     (j) Eligible Receivables. Each Pool Receivable included as an Eligible Receivable in
the calculation of the Net Receivables Pool Balance is an Eligible Receivable.

     (k) Credit and Collection Policy. The Seller has complied in all material respects
with the Credit and Collection Policy of each Originator with regard to each Receivable originated
by such Originator.

     (l) Investment Company Act. The Seller is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     2. Representations and Warranties of the Servicer. The Servicer represents and
warrants to the Administrator, each Purchaser Agent and each Purchaser as of the date of execution
of this Agreement that:

     (a) Existence and Power. The Servicer is a corporation duly organized, validly
existing and in good standing under the laws of its state of organization, and has all company
power and all governmental licenses, authorizations, consents and approvals required to carry on
its business in each jurisdiction in which its business is conducted.

     (b) Company and Governmental Authorization, Contravention. The execution, delivery
and performance by the Servicer of this Agreement and each other Transaction Document to which it
is a party are within the Servicer’s organizational powers, have been duly authorized by all
necessary organizational action, require no action by or in respect of, or filing with, any
governmental body, agency or official other than filings and disclosures made under securities
laws, and do not contravene, or constitute a default under, any provision of applicable law or
regulation or of the Certificate of Incorporation of the Servicer or of any judgment,

III-2

 

injunction, order or decree or agreement or other instrument binding upon the Servicer or
result in the creation or imposition of any lien on assets of the Servicer or any of its
Subsidiaries.

     (c) Binding Effect of Agreement. This Agreement and each other Transaction Document
to which it is a party constitutes the legal, valid and binding obligation of the Servicer
enforceable against the Servicer in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement
of creditors’ rights generally and by general principles of equity, regardless of whether
enforceability is considered in a proceeding in equity or at law.

     (d) Accuracy of Information. All information heretofore furnished by the Servicer to
the Administrator or any Purchaser Agent pursuant to or in connection with this Agreement or any
other Transaction Document is, and all such information hereafter furnished by the Servicer to the
Administrator or any Purchaser Agent in writing pursuant to this Agreement or any other Transaction
Document will be, true and accurate in all material respects on the date such information is stated
or certified.

     (e) Actions, Suits. Except as set forth in Schedule IV, there are no actions,
suits or proceedings pending or, to the best of the Servicer’s knowledge, threatened against or
affecting the Servicer or any of its Affiliates or their respective properties, in or before any
court, arbitrator or other body, which could reasonably be expected to have a Material Adverse
Effect upon the ability of the Servicer (or such Affiliate) to perform its obligations under this
Agreement or any other Transaction Document to which it is a party.

     (f) No Material Adverse Effect. Since the date of the financial statements described
in Section 2(i) below, there has been no Material Adverse Effect.

     (g) Credit and Collection Policy. The Servicer has complied in all material respects
with the Credit and Collection Policy of each Originator with regard to each Receivable originated
by such Originator.

     (h) Investment Company Act. The Servicer is not an “investment company,” or a company
“controlled” by an “investment company,” within the meaning of the Investment Company Act of 1940,
as amended.

     (i) Financial Information. The balance sheets of Cooper Tire and its consolidated
Subsidiaries as at December 31, 2006, and the related statements of income and retained earnings
for the fiscal year then ended, copies of which have been furnished to the Administrator and each
Purchaser Agent, fairly present the financial condition of Cooper Tire and its consolidated
Subsidiaries as at such date and the results of the operations of Cooper Tire and its Subsidiaries
for the period ended on such date, all in accordance with generally accepted accounting principles
consistently applied.

     3. Representations, Warranties and Agreements Relating to the Security Interest. The
Seller hereby makes the following representations, warranties and agreements with respect to the
Receivables and Related Security:

     (a) The Receivables.

III-3

 

     (i) Creation. This Agreement creates a valid and continuing security interest
(as defined in the applicable UCC) in the Receivables included in the Receivables Pool in
favor of the Administrator (for the benefit of the Purchasers), which security interest is
prior to all other Adverse Claims, and is enforceable as such as against creditors of and
purchasers from the Seller.

     (ii) Nature of Receivables. The Receivables included in the Receivables Pool
constitute either “accounts”, “general intangibles” or “tangible chattel paper” within the
meaning of the applicable UCC.

     (iii) Ownership of Receivables. The Seller owns and has good and marketable
title to the Receivables included in the Receivables Pool and Related Security free and
clear of any Adverse Claim.

     (iv) Perfection and Related Security. The Seller has caused the filing of all
appropriate financing statements in the proper filing office in the appropriate
jurisdictions under applicable law in order to perfect the sale of the Receivables and
Related Security from such Originator to the Seller pursuant to the Sale Agreement, and the
sale and security interest therein from the Seller to the Administrator under this
Agreement, to the extent that such collateral constitutes “accounts,” “general intangibles,”
or “tangible chattel paper.”

     (v) Tangible Chattel Paper. With respect to any Receivables included in the
Receivables Pool that constitute “tangible chattel paper”, if any, the Seller (or the
Servicer on its behalf) has in its possession the original copies of such tangible chattel
paper that constitute or evidence such Receivables, and the Seller has caused (and will
cause the applicable Originator to cause), within ten days after the Closing Date, the
filing of financing statements described in clause (iv), above, each of which will
contain a statement that: “A purchase of, or security interest in, any collateral described
in this financing statement will violate the rights of the Administrator.” The Receivables
to the extent they are evidenced by “tangible chattel paper” do not have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed to any
Person other than the Seller or the Administrator.

     (b) The Collection Account.

     (i) Nature of Account. Each Lock-Box Account constitutes a “deposit account”
within the meaning of the applicable UCC.

     (ii) Ownership. The Seller owns and has good and marketable title to the
Lock-Box Accounts and Collection Account free and clear of any Adverse Claim.

     (iii) Perfection. The Seller has delivered to the Administrator a fully
executed Lock-Box Agreement relating to each Lock-Box Account, pursuant to which each
applicable Lock-Box Bank, respectively, has agreed, following the occurrence and
continuation of a Termination Event, to comply with all instructions originated by the
Administrator (on behalf of the Purchasers) directing the disposition of funds in such
Lock-Box Account without further consent by the Seller or the Servicer.

III-4

 

     (c) Priority.

     (i) Other than the transfer of the Receivables to the Seller and the Administrator
under the Sale Agreement and this Agreement, respectively, and/or the security interest
granted to the Seller and the Administrator pursuant to the Sale Agreement and this
Agreement, respectively, neither the Seller nor any Originator has pledged, assigned, sold,
granted a security interest in, or otherwise conveyed any of the Receivables transferred or
purported to be transferred under the Transaction Documents, the Lock-Box Accounts or any
subaccount thereof, except for any such pledge, grant or other conveyance which has been
released or terminated. Neither the Seller nor any Originator has authorized the filing of,
or is aware of any financing statements against either the Seller or such Originator that
include a description of Receivables transferred or purported to be transferred under the
Transaction Documents, the Lock-Box Accounts or any subaccount thereof, other than any
financing statement (i) relating to the sale thereof by such Originator to the Seller under
the Sale Agreement, (ii) relating to the security interest granted to the Administrator
under this Agreement, or (iii) that has been released or terminated.

     (ii) The Seller is not aware of any judgment, ERISA or tax lien filings against either
the Seller, the Servicer or any Originator.

     (iii) The Lock-Box Accounts are not in the name of any person other than the Seller or
the Administrator. Neither the Seller nor the Servicer has consented to any bank
maintaining such account to comply with instructions of any person other than the
Administrator.

     (d) Survival of Supplemental Representations. Notwithstanding any other provision of
this Agreement or any other Transaction Document, the representations contained in this
Section shall be continuing, and remain in full force and effect until such time as the
Purchased Interest and all other obligations under this Agreement have been finally and fully paid
and performed.

     (e) No Waiver. To the extent required pursuant to the securitization program of any
Conduit Purchaser, the parties to this Agreement: (i) shall not, without obtaining a confirmation
of the then-current rating of the Notes, waive any of the representations set forth in this
Section; (ii) shall provide the Ratings Agencies with prompt written notice of any breach
of any representations set forth in this Section, and shall not, without obtaining a
confirmation of the then-current rating of the Notes (as determined after any adjustment or
withdrawal of the ratings following notice of such breach) waive a breach of any of the
representations set forth in this Section.

     (f) Servicer to Maintain Perfection and Priority. In order to evidence the interests
of the Administrator under this Agreement, the Servicer shall, from time to time take such action,
or execute and deliver such instruments as may be necessary (including, without limitation, such
actions as are reasonably requested by the Administrator or any Purchaser Agent) to maintain and
perfect, as a first-priority interest, the Administrator’s security interest in the Receivables,
Related Security and Collections. The Servicer shall, from time to time and within the time

III-5

 

limits established by law, prepare and present to the Administrator for the Administrator’s
authorization and approval, all financing statements, amendments, continuations or initial
financing statements in lieu of a continuation statement, or other filings necessary to continue,
maintain and perfect the Administrator’s security interest as a first-priority interest. The
Administrator’s approval of such filings shall authorize the Servicer to file such financing
statements under the UCC without the signature of the Seller, any Originator or the Administrator
where allowed by applicable law. Notwithstanding anything else in the Transaction Documents to the
contrary, the Servicer shall not have any authority to file a termination, partial termination,
release, partial release, or any amendment that deletes the name of a debtor or excludes collateral
of any such financing statements, without the prior written consent of the Administrator and each
Purchaser Agent.

     4. Reaffirmation of Representations and Warranties. On the date of each Purchase
and/or reinvestment hereunder, and on the date each Information Package or other report is
delivered to the Administrator, any Purchaser Agent or any Purchaser hereunder, the Seller and the
Servicer, by accepting the proceeds of such Purchase or reinvestment and/or the provision of such
information or report, shall each be deemed to have certified that (i) all representations and
warranties of the Seller and the Servicer, as applicable, described in this Exhibit III, as
from time to time amended in accordance with the terms hereof, are correct on and as of such day as
though made on and as of such day, except for representations and warranties which apply as to an
earlier date (in which case such representations and warranties shall be true and correct as of
such date), and (ii) no event has occurred or is continuing, or would result from any such
Purchase, which constitutes a Termination Event or an Unmatured Termination Event.

III-6

 

EXHIBIT IV

COVENANTS

     1. Covenants of the Seller. At all times from the date hereof until the latest of the
Facility Termination Date, the date on which no Capital of or Discount in respect of the Purchased
Interest shall be outstanding, the date on which an amount equal to 100% of the LC Participation
Amount has been deposited in the LC Collateral Account or all Letters of Credit have expired, or
the date all other amounts owed by the Seller under this Agreement to any Purchaser, Purchaser
Agent, the Administrator and any other Indemnified Party or Affected Person shall be paid in full:

     (a) Financial Reporting. The Seller will maintain a system of accounting established
and administered in accordance with generally accepted accounting principles as in effect in the
appropriate jurisdiction, and the Seller (or the Servicer on its behalf) shall furnish to the
Administrator and each Purchaser Agent:

     (i) Annual Reporting. Promptly upon completion and in no event later than 120
days after the close of each fiscal year of the Seller, annual unaudited financial
statements of the Seller certified by a designated financial or other officer of the Seller.

     (ii) Information Packages. As soon as available and in any event not later
than two Business Days prior to the Settlement Date, an Information Package as of the most
recently completed calendar month.

     (iii) Other Information. Such other information (including non-financial
information) as the Administrator or any Purchaser Agent may from time to time reasonably
request.

     (b) Notices. The Seller will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A statement
of the chief financial officer or chief accounting officer of the Seller setting forth
details of any Termination Event or Unmatured Termination Event and the action which the
Seller proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation or
warranty to be true (when made or at any time thereafter) with respect to the Receivables
included in the Receivables Pool.

     (iii) Litigation. The institution of any litigation, arbitration proceeding or
governmental proceeding which may have a Material Adverse Effect.

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool
Receivables or Collections with respect thereto, (B) any Person other than the

IV-1

 

Seller, the Servicer or the Administrator shall obtain any rights or direct any action
with respect to any Lock-Box Account (or related lock-box or post office box) or (C) any
Obligor shall receive any change in payment instructions with respect to Pool Receivable(s)
from a Person other than the Servicer or the Administrator.

     (v) ERISA and Other Claims. Promptly after the filing or receiving thereof,
copies of all reports and notices that the Seller or any ERISA Affiliate files under ERISA
with the Internal Revenue Service, the Pension Benefit Guaranty Corporation or the U.S.
Department of Labor or that the Seller or any Affiliate receives from any of the foregoing
or from any multiemployer plan (within the meaning of Section 4001(a)(3) of ERISA) to which
the Seller or any of its Affiliates is or was, within the preceding five years, a
contributing employer, in each case in respect of any Reportable Event (as defined in ERISA)
that could, in the aggregate, result in the imposition of liability on the Seller and/or any
such Affiliate.

     (c) Conduct of Business. The Seller will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly organized, validly existing and in good
standing as a domestic organization in its jurisdiction of organization and maintain all requisite
authority to conduct its business in each jurisdiction in which its business is conducted.

     (d) Compliance with Laws. The Seller will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject.

     (e) Furnishing of Information and Inspection of Receivables. The Seller will furnish
to the Administrator and each Purchaser Agent from time to time such information with respect to
the Pool Receivables as the Administrator or such Purchaser Agent may reasonably request. The
Seller will, at the Seller’s expense, at any time and from time to time during regular business
hours with prior written notice (i) permit the Administrator or any Purchaser Agent, or their
respective agents or representatives, (A) to examine and make copies of and abstracts from all
books and records relating to the Pool Receivables or other Pool Assets and (B) to visit the
offices and properties of the Seller for the purpose of examining such books and records, and to
discuss matters relating to the Pool Receivables, other Pool Assets or the Seller’s performance
hereunder or under the other Transaction Documents to which it is a party with any of the officers,
directors, employees or independent public accountants of the Seller (provided that representatives
of the Seller are present during such discussions) having knowledge of such matters and (ii)
without limiting the provisions of clause (i) above, from time to time during regular
business hours, at the Seller’s expense, upon reasonable prior written notice from the
Administrator and the Purchaser Agents, permit certified public accountants or other auditors
acceptable to the Administrator to conduct a review of its books and records with respect to the
Pool Receivables.

     (f) Payments on Receivables, Accounts. The Seller will, and will cause each
Originator to, at all times instruct all Obligors to deliver payments on the Pool Receivables to a
Lock-Box Account. If any such payments or other Collections are received by the Seller or an
Originator, it shall hold such payments in trust for the benefit of the Administrator and the
Purchasers and promptly (but in any event within two Business Days after receipt) remit such

IV-2

 

funds into a Lock-Box Account. The Seller will cause each Lock-Box Bank to comply with the
terms of each applicable Lock-Box Agreement. The Seller will not permit the funds other than
Collections on Pool Receivables and other Pool Assets to be deposited into any Lock-Box Account.
If such funds are nevertheless deposited into any Lock-Box Account, the Seller will promptly
identify such funds for segregation. The Seller will not, and will not permit the Servicer, any
Originator or other Person to, commingle Collections or other funds to which the Administrator, any
Purchaser Agent or any Purchaser is entitled with any other funds. The Seller shall only add, and
shall only permit an Originator to add, a Lock-Box Bank (or the related lock-box or post office
box), or Lock-Box Account to those listed on Schedule II to this Agreement, if the Administrator
has received notice of such addition, a copy of any new Lock-Box Agreement and an executed and
acknowledged copy of a Lock-Box Agreement in form and substance acceptable to the Administrator
from any such new Lock-Box Bank. The Seller shall only terminate a Lock-Box Bank or close a
Lock-Box Account (or the related lock-box or post office box), upon 30 days’ advance notice to the
Administrator.

     (g) Sales, Liens, etc. Except as otherwise provided herein, the Seller will not sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any
Adverse Claim upon (including, without limitation, the filing of any financing statement) or with
respect to, any Pool Receivable or other Pool Asset, or assign any right to receive income in
respect thereof.

     (h) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Seller will not extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract
related thereto, without the prior written consent of the Administrator and the Majority Purchaser
Agents. The Seller shall at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts related
to the Pool Receivables, and timely and fully comply in all material respects with the Credit and
Collection Policy with regard to each Receivable and the related Contract.

     (i) Change in Business. The Seller will not (i) make any change in the character of
its business, which change would impair the collectibility of any Pool Receivable or (ii) make any
change in any Credit and Collection Policy that could reasonably be expected to materially
adversely affect the collectibility of the Pool Receivables, the enforceability of any related
Contract or its ability to perform its obligations under the related Contract or the Transaction
Documents, in the case of either (i) or (ii) above, without the prior written consent of the
Administrator and each Purchaser Agent. The Seller shall not make any change in any Credit and
Collection Policy without giving prior written notice thereof to the Administrator and each
Purchaser Agent.

     (j) Fundamental Changes. The Seller shall not, without the prior written consent of
the Administrator and the Majority Purchaser Agents, permit itself (i) to merge or consolidate with
or into, or convey, transfer, lease or otherwise dispose of (whether in one transaction or in a
series of transactions) all or substantially all of its assets (whether now owned or hereafter
acquired) to, any Person or (ii) to be owned by any Person other than Cooper Tire and thereby cause
Cooper Tire’s percentage of ownership or control of the Seller to be reduced. The Seller shall
provide the Administrator and each Purchaser Agent with at least 30 days’ prior written

IV-3

 

notice before making any change in the Seller’s name, location or making any other change in
the Seller’s identity or corporate structure that could impair or otherwise render any UCC
financing statement filed in connection with this Agreement “seriously misleading” as such term (or
similar term) is used in the applicable UCC; each notice to the Administrator and the Purchaser
Agents pursuant to this sentence shall set forth the applicable change and the proposed effective
date thereof. The Seller will also maintain and implement (or cause the Servicer to maintain and
implement) administrative and operating procedures (including an ability to recreate records
evidencing Pool Receivables and related Contracts in the event of the destruction of the originals
thereof), and keep and maintain (or cause the Servicer to keep and maintain) all documents, books,
records, computer tapes and disks and other information reasonably necessary or advisable for the
collection of all Pool Receivables (including records adequate to permit the daily identification
of each Pool Receivable and all Collections of and adjustments to each existing Pool Receivable).

     (k) Change in Payment Instructions to Obligors. The Seller shall not (and shall cause
the Originators not to) add to, replace or terminate any of the Lock-Box Accounts (or any related
lock-box or post office box) listed in Schedule II hereto or make any change in its (or their)
instructions to the Obligors regarding payments to be made to the Lock-Box Accounts (or any related
lock-box or post office box), unless the Administrator and each Purchaser Agent shall have received
(x) prior written notice of such addition, termination or change and (y) signed and acknowledged
Lock-Box Agreements with respect to such new Lock-Box Accounts (or any related lock-box or post
office box).

     (l) Ownership Interest, Etc. The Seller shall (and shall cause the Servicer to), at
its expense, take all action necessary or desirable to establish and maintain a valid and
enforceable undivided percentage ownership or security interest, to the extent of the Purchased
Interest, in the Pool Receivables, the Related Security and Collections with respect thereto, and a
first priority perfected security interest in the Pool Assets, in each case free and clear of any
Adverse Claim, in favor of the Administrator (on behalf of the Purchasers), including taking such
action to perfect, protect or more fully evidence the interest of the Administrator (on behalf of
the Purchasers) as the Administrator or any Purchaser Agent, may reasonably request.

     (m) Certain Agreements. Without the prior written consent of the Administrator and the
Majority Purchaser Agents, the Seller will not amend, modify, waive, revoke or terminate any
Transaction Document to which it is a party or any provision of the Seller’s organizational
documents which requires the consent of the “Independent Member” (as defined in the Seller’s
operating agreement).

     (n) Restricted Payments. (i) Except pursuant to clause (ii) below, the Seller
will not: (A) purchase or redeem any shares of its capital stock, (B) declare or pay any dividend
or set aside any funds for any such purpose, (C) prepay, purchase or redeem any Debt, (D) lend or
advance any funds or (E) repay any loans or advances to, for or from any of its Affiliates (the
amounts described in clauses (A) through (E) being referred to as “Restricted
Payments”).

     (i) Subject to the limitations set forth in clause (iii) below, the Seller may
make Restricted Payments so long as such Restricted Payments are made only in one or more of
the following ways: (A) the Seller may make cash payments (including prepayments)

IV-4

 

on the Company Notes in accordance with their respective terms, and (B) if no amounts
are then outstanding under any Company Note, the Seller may declare and pay dividends.

     (ii) The Seller may make Restricted Payments only out of the funds, if any, it receives
pursuant to Sections 1.4(b)(ii) and (iv) and 1.4(c) of this
Agreement. Furthermore, the Seller shall not pay, make or declare: (A) any dividend if,
after giving effect thereto, the Tangible Net Worth of the Seller would be less than
$10,000,000, or (B) any Restricted Payment (including any dividend) if, after giving effect
thereto, any Termination Event or Unmatured Termination Event shall have occurred and be
continuing.

     (o) Other Business. The Seller will not: (i) engage in any business other than the
transactions contemplated by the Transaction Documents, (ii) create, incur or permit to exist any
Debt of any kind (or cause or permit to be issued for its account any letters of credit or bankers’
acceptances) other than pursuant to this Agreement or the Company Notes, or (iii) form any
Subsidiary or make any investments in any other Person; provided, however, that the
Seller shall be permitted to incur minimal obligations to the extent necessary for the day-to-day
operations of the Seller (such as expenses for stationery, audits, maintenance of legal status,
etc.).

     (p) Use of Seller’s Share of Collections. The Seller shall apply the Seller’s Share of
Collections to make payments in the following order of priority: (i) the payment of its expenses
(including all obligations payable to the Purchasers, the Purchaser Agents and the Administrator
under this Agreement and under the Purchaser Group Fee Letters), (ii) the payment of accrued and
unpaid interest on the Company Note and (iii) other legal and valid corporate purposes.

     (q) Tangible Net Worth. The Seller will not permit its Tangible Net Worth, at any
time, to be less than $10,000,000.

     2. Covenants of the Servicer. At all times from the date hereof until the latest of
the Facility Termination Date, the date on which no Capital of or Discount in respect of the
Purchased Interest shall be outstanding and all Letters of Credit have been terminated or the date
all other amounts owed by the Seller or the Servicer under this Agreement to any Purchaser,
Purchaser Agent, the Administrator and any other Indemnified Party or Affected Person shall be paid
in full:

     (a) Financial Reporting. The Servicer will maintain a system of accounting
established and administered in accordance with generally accepted accounting principles as in
effect in the appropriate jurisdiction, and the Servicer shall furnish to the Administrator and
each Purchaser Agent:

     (i) Annual Reporting. Promptly upon completion and in no event later than 120
days after the close of each fiscal year of Cooper Tire, annual audited financial statements
of Cooper Tire and its consolidated subsidiaries certified by independent certified public
accountants selected by Cooper Tire but reasonably acceptable to the Administrator and each
such Purchaser Agent, prepared in accordance with generally accepted accounting principles,
including consolidated balance sheets as of the end of

IV-5

 

such period, consolidated statements of income, related profit and loss and
reconciliation of surplus statements, and a statement of changes in financial position.

     (ii) Quarterly Reporting. Promptly upon completion and in no event later than
60 days after the close of each financial quarter of Cooper Tire, unaudited financial
statements of Cooper Tire certified by a designated financial officer of Cooper Tire
prepared in accordance with generally accepted accounting principles, including consolidated
balance sheets of Cooper Tire as of the end of such period and related profit and loss and
reconciliation of surplus statements.

     (iii) Compliance Certificates. Together with the annual report required above,
a compliance certificate in form and substance acceptable to the Administrator and each
Purchaser Agent signed by its chief accounting officer or treasurer solely in their
capacities as officers of the Servicer stating that no Termination Event or Unmatured
Termination Event exists, or if any Termination Event or Unmatured Termination Event exists,
stating the nature and status thereof.

     (iv) Information Packages. As soon as available and in any event not later
than two Business Days prior to the Settlement Date, an Information Package as of the most
recently completed calendar month.

     (v) “Compliance Certificate” under Credit Agreement. As and when each
“Compliance Certificate” is delivered under the revolving credit agreement described in
clause (m) of Exhibit V to this Agreement, an executed copy of such
certificate.

     (vi) Other Information. Such other information (including non-financial
information) as the Administrator or any Purchaser Agent may from time to time reasonably
request.

     (b) Notices. The Servicer will notify the Administrator and each Purchaser Agent in
writing of any of the following events promptly upon (but in no event later than three Business
Days after) a financial or other officer learning of the occurrence thereof, with such notice
describing the same, and if applicable, the steps being taken by the Person(s) affected with
respect thereto:

     (i) Notice of Termination Events or Unmatured Termination Events. A statement
of the chief financial officer or chief accounting officer of the Servicer setting forth
details of any Termination Event or Unmatured Termination Event and the action which the
Servicer proposes to take with respect thereto.

     (ii) Representations and Warranties. The failure of any representation or
warranty to be true (when made or at any time thereafter) with respect to the Pool
Receivables.

     (iii) Litigation. The institution of any litigation, arbitration proceeding or
governmental proceeding which could reasonably be expected to have a Material Adverse
Effect.

IV-6

 

     (iv) Adverse Claim. (A) Any Person shall obtain an Adverse Claim upon the Pool
Receivables or Collections with respect thereto, (B) any Person other than the Seller, the
Servicer or the Administrator shall obtain any rights or direct any action with respect to
any Lock Box Account (or related lock-box or post office box) or (C) any Obligor shall
receive any change in payment instructions with respect to Pool Receivable(s) from a Person
other than the Servicer or the Administrator.

     (c) Conduct of Business. The Servicer will carry on and conduct its business in
substantially the same manner and in substantially the same fields of enterprise as it is presently
conducted and will do all things necessary to remain duly incorporated, validly existing and in
good standing as a domestic corporation in its jurisdiction of incorporation and maintain all
requisite authority to conduct its business in each jurisdiction in which its business is
conducted.

     (d) Compliance with Laws. The Servicer will comply with all laws, rules, regulations,
orders, writs, judgments, injunctions, decrees or awards to which it may be subject if the failure
to comply could reasonably be expected to have a Material Adverse Effect.

     (e) Furnishing of Information and Inspection of Receivables. The Servicer will
furnish to the Administrator and each Purchaser Agent from time to time such information with
respect to the Pool Receivables as the Administrator or such Purchaser Agent may reasonably
request. The Servicer will, at the Servicer’s expense, at any time and from time to time during
regular business hours with prior written notice (i) permit the Administrator or any Purchaser
Agent, or their respective agents or representatives, (A) to examine and make copies of and
abstracts from all books and records relating to the Pool Receivables or other Pool Assets and (B)
to visit the offices and properties of the Servicer for the purpose of examining such books and
records, and to discuss matters relating to the Pool Receivables, other Pool Assets or the
Servicer’s performance hereunder or under the other Transaction Documents to which it is a party
with any of the officers, directors, employees or independent public accountants of the Servicer
(provided that representatives of the Servicer are present during such discussions) having
knowledge of such matters and (ii) without limiting the provisions of clause (i) above,
during regular business hours, at the Servicer’s expense, upon reasonable prior written notice from
the Administrator, permit certified public accountants or other auditors acceptable to the
Administrator and the Purchaser Agents to conduct, a review of its books and records with respect
to the Pool Receivables.

     (f) Payments on Receivables, Accounts. The Servicer will at all times instruct all
Obligors to deliver payments on the Pool Receivables to a Lock-Box Account. If any such payments
or other Collections are received by the Servicer, it shall hold such payments in trust for the
benefit of the Administrator and the Purchasers and promptly (but in any event within two Business
Days after receipt) remit such funds into a Lock-Box Account. The Servicer will cause each
Lock-Box Bank to comply with the terms of each applicable Lock-Box Agreement. The Servicer will
not permit the funds other than Collections on Pool Receivables and other Pool Assets to be
deposited into any Lock-Box Account. If such funds are nevertheless deposited into any Lock-Box
Account, the Servicer will promptly identify such funds for segregation. The Servicer will not
commingle Collections or other funds to which the Administrator, any Purchaser Agent or any
Purchaser is entitled with any other funds. The Servicer shall only add, a Lock-Box Bank (or the
related lock-box or post office box), or Lock-Box Account to those listed

IV-7

 

on Schedule II to this Agreement, if the Administrator has received notice of such addition, a
copy of any new Lock-Box Agreement and an executed and acknowledged copy of a Lock-Box Agreement in
form and substance acceptable to the Administrator from any such new Lock-Box Bank. The Servicer
shall only terminate a Lock-Box Bank or close a Lock-Box Account (or the related lock-box or post
office box), upon 30 days’ advance notice to the Administrator.

     (g) Extension or Amendment of Pool Receivables. Except as otherwise permitted in
Section 4.2 of this Agreement, the Servicer will not extend, amend or otherwise modify the
terms of any Pool Receivable, or amend, modify or waive any term or condition of any Contract
related thereto, without the prior written consent of the Administrator and the Majority Purchaser
Agents. The Servicer shall at its expense, timely and fully perform and comply with all material
provisions, covenants and other promises required to be observed by it under the Contracts related
to the Pool Receivables, and timely and fully comply in all material respects with the Credit and
Collection Policy with regard to each Pool Receivable and the related Contract.

     (h) Change in Business. The Servicer will not (i) make any change in the character of
its business, which change would impair the collectibility of any Pool Receivable or (ii) make any
change in any Credit and Collection Policy that could reasonably be expected to adversely affect
the collectibility of the Pool Receivables, the enforceability of any related Contract or its
ability to perform its obligations under the related Contract or the Transaction Documents, in the
case of either (i) or (ii) above, without the prior written consent of the Administrator and each
Purchaser Agent. The Servicer shall not make any change in any Credit and Collection Policy
without giving prior written notice thereof to the Administrator and each Purchaser Agent.

     (i) Records. The Servicer will maintain and implement administrative and operating
procedures (including an ability to recreate records evidencing Pool Receivables and related
Contracts in the event of the destruction of the originals thereof), and keep and maintain all
documents, books, records, computer tapes and disks and other information reasonably necessary or
advisable for the collection of all Pool Receivables (including records adequate to permit the
daily identification of each Pool Receivable and all Collections of and adjustments to each
existing Pool Receivable).

     (j) Change in Payment Instructions to Obligors. The Servicer shall not add to,
replace or terminate any of the Lock-Box Accounts (or any related lock-box or post office box)
listed in Schedule II hereto or make any change in its instructions to the Obligors
regarding payments to be made to the Lock-Box Accounts (or any related lock-box or post office
box), unless the Administrator and each Purchaser Agent shall have received (x) prior written
notice of such addition, termination or change and (y) signed and acknowledged Lock-Box Agreements
with respect to such new Lock-Box Accounts (or any related lock-box or post office box).

     (k) Ownership Interest, Etc. The Servicer shall, at its expense, take all action
necessary or desirable to establish and maintain a valid and enforceable undivided percentage
ownership or security interest, to the extent of the Purchased Interest, in the Pool Receivables,
the Related Security and Collections with respect thereto, and a first priority perfected security
interest in the Pool Assets, in each case free and clear of any Adverse Claim in favor of the
Administrator (on behalf of the Purchasers), including taking such action to perfect, protect or

IV-8

 

more fully evidence the interest of the Administrator (on behalf of the Purchasers) as the
Administrator or any Purchaser Agent, may reasonably request.

     3. Separate Existence. Each of the Seller and the Servicer hereby acknowledges that
the Purchasers and the Administrator are entering into the transactions contemplated by this
Agreement and the other Transaction Documents in reliance upon the Seller’s identity as a legal
entity separate from Cooper Tire, the Originators and their respective Affiliates. Therefore, from
and after the date hereof, each of the Seller and the Servicer shall take all steps specifically
required by this Agreement or reasonably required by the Administrator or any Purchaser Agent to
continue the Seller’s identity as a separate legal entity and to make it apparent to third Persons
that the Seller is an entity with assets and liabilities distinct from those of Cooper Tire, any
Originator and any other Person, and is not a division of Cooper Tire, any Originator or any other
Person. Without limiting the generality of the foregoing and in addition to and consistent with the
other covenants set forth herein, each of the Seller and the Servicer shall take such actions as
shall be required in order that:

     (a) The Seller will be a limited liability company whose primary activities are restricted in
its operating agreement to: (i) purchasing or otherwise acquiring from the Originators, owning,
holding, granting security interests or selling interests in Pool Assets, (ii) entering into
agreements for the selling and servicing of the Receivables Pool, and (iii) conducting such other
activities as it deems necessary or appropriate to carry out its primary activities;

     (b) The Seller shall not engage in any business or activity, or incur any indebtedness or
liability (including, without limitation, any assumption or guaranty of any obligation of Cooper
Tire, any Originator or any Affiliate thereof), other than as expressly permitted by the
Transaction Documents;

     (c) (i) Not less than one member of the Seller’s Board of Directors (the “Independent
Director”) shall be a natural person (A) who is not at the time of initial appointment and has not
been at any time during the five (5) years preceding such appointment: (1) an equityholder,
director (other than the Independent Director), officer, employee, member, manager, attorney or
partner of Cooper Tire, Seller or any of their Affiliates; (2) a customer of, supplier to or other
person who derives more than 1% of its purchases or revenues from its activities with Cooper Tire,
Seller or any of their Affiliates; (3) a person or other entity controlling, controlled by or under
common control with any such equity holder, partner, member, manager customer, supplier or other
person; or (4) a member of the immediate family of any such equity holder, director, officer,
employee, member, manager, partner, customer, supplier or other person and (B) who has (1) prior
experience as an independent director for a corporation or an independent manager of a limited
liability company whose charter documents required the unanimous consent of all independent
director or independent managers thereof before such corporation could consent to the institution
of bankruptcy or insolvency proceedings against it or could file a petition seeking relief under
any applicable federal or state law relating to bankruptcy and (2) at least three years of
employment experience with one or more entities that provide, in the ordinary course of their
respective businesses, advisory, management or placement services to issuers of securitization or
structured finance instruments, agreements or securities. Under this clause (c), the term
“control” means the possession, directly or indirectly, of the power to direct

IV-9

 

or cause the direction of management, policies or activities of a Person, whether through
ownership of voting securities, by contract or otherwise. (ii) The operating agreement of the
Seller shall provide that: (A) the Seller’s Board of Directors shall not approve, or take any other
action to cause the filing of, a voluntary bankruptcy petition with respect to the Seller unless
the Independent Director shall approve the taking of such action in writing before the taking of
such action, and (B) such provision cannot be amended without the prior written consent of the
Independent Director;

     (d) The Independent Director shall not at any time serve as a trustee in bankruptcy for the
Seller, Cooper Tire, any Originator or any of their respective Affiliates;

     (e) The Seller shall conduct its affairs strictly in accordance with its organizational
documents and observe all necessary, appropriate and customary company formalities, including, but
not limited to, holding all regular and special members’ and board of managers’ meetings
appropriate to authorize all limited liability company action, keeping separate and accurate
minutes of its meetings, passing all resolutions or consents necessary to authorize actions taken
or to be taken, and maintaining accurate and separate books, records and accounts, including, but
not limited to, payroll and intercompany transaction accounts;

     (f) Any employee, consultant or agent of the Seller will be compensated from the Seller’s
funds for services provided to the Seller, and to the extent that Seller shares the same officers
or other employees as Cooper Tire or any Originator (or any other Affiliate thereof), the salaries
and expenses relating to providing benefits to such officers and other employees shall be fairly
allocated among such entities, and each such entity shall bear its fair share of the salary and
benefit costs associated with such common officers and employees. The Seller will not engage any
agents other than its attorneys, auditors and other professionals, and a servicer and any other
agent contemplated by the Transaction Documents for the Receivables Pool, which servicer will be
fully compensated for its services by payment of the Servicing Fee, and a manager, which manager
will be fully compensated from the Seller’s funds;

     (g) The Seller will contract with the Servicer to perform for the Seller all operations
required on a daily basis to service the Receivables Pool. The Seller will pay the Servicer the
Servicing Fee pursuant hereto. Except as otherwise permitted by this Agreement, the Seller will not
incur any material indirect or overhead expenses for items shared with Cooper Tire or any
Originator (or any other Affiliate thereof) that are not reflected in the Servicing Fee. To the
extent, if any, that the Seller (or any Affiliate thereof) shares items of expenses not reflected
in the Servicing Fee or the manager’s fee, such as legal, auditing and other professional services,
such expenses will be allocated to the extent practical on the basis of actual use or the value of
services rendered, and otherwise on a basis reasonably related to the actual use or the value of
services rendered; it being understood that Cooper Tire, in its capacity as Servicer, shall pay all
expenses relating to the preparation, negotiation, execution and delivery of the Transaction
Documents, including legal, agency and other fees;

     (h) The Seller’s operating expenses will not be paid by Cooper Tire or any Originator or any
Affiliate thereof;

     (i) The Seller will have its own separate stationery;

IV-10

 

     (j) The Seller’s books and records will be maintained separately from those of Cooper Tire,
each Originator and any other Affiliate thereof and in a manner such that it will not be difficult
or costly to segregate, ascertain or otherwise identify the assets and liabilities of Seller;

     (k) All financial statements of Cooper Tire or any Originator or any Affiliate thereof that
are consolidated to include Seller will disclose that (i) the Seller’s sole business consists of
the purchase or acceptance through capital contributions of the Receivables and Related Rights from
the Originators and the subsequent retransfer of or granting of a security interest in such
Receivables and Related Rights to certain purchasers party to this Agreement, (ii) the Seller is a
separate legal entity with its own separate creditors who will be entitled, upon its liquidation,
to be satisfied out of the Seller’s assets prior to any assets or value in the Seller becoming
available to the Seller’s equity holders and (iii) the assets of the Seller are not available to
pay creditors of Cooper Tire or the Originators or any other Affiliates of Cooper Tire or the
Originators;

     (l) The Seller’s assets will be maintained in a manner that facilitates their identification
and segregation from those of Cooper Tire, the Originators or any Affiliates thereof;

     (m) The Seller will strictly observe corporate formalities in its dealings with Cooper Tire,
the Originators or any Affiliates thereof, and funds or other assets of the Seller will not be
commingled with those of Cooper Tire, the Originators or any Affiliates thereof except as permitted
by this Agreement in connection with servicing the Pool Receivables. The Seller shall not maintain
joint bank accounts or other depository accounts to which Cooper Tire or any Affiliate thereof
(other than Cooper Tire in its capacity as the Servicer) has independent access. The Seller is not
named, and has not entered into any agreement to be named, directly or indirectly, as a direct or
contingent beneficiary or loss payee on any insurance policy with respect to any loss relating to
the property of Cooper Tire, the Originators or any Subsidiaries or other Affiliates thereof. The
Seller will pay to the appropriate Affiliate the marginal increase or, in the absence of such
increase, the market amount of its portion of the premium payable with respect to any insurance
policy that covers the Seller and such Affiliate;

     (n) The Seller will maintain arm’s-length relationships with Cooper Tire, the Originators (and
any Affiliates thereof). Any Person that renders or otherwise furnishes services to the Seller will
be compensated by the Seller at market rates for such services it renders or otherwise furnishes to
the Seller. Neither the Seller on the one hand, nor Cooper Tire or any Originator, on the other
hand, will be or will hold itself out to be responsible for the debts of the other or the decisions
or actions respecting the daily business and affairs of the other. The Seller, Cooper Tire and the
Originators will immediately correct any known misrepresentation with respect to the foregoing, and
they will not operate or purport to operate as an integrated single economic unit with respect to
each other or in their dealing with any other entity;

     (o) The Seller shall have a separate area from Cooper Tire and each Originator for its
business (which may be located at the same address as such entities) and to the extent that any
other such entity has offices in the same location, there shall be a fair and appropriate
allocation of overhead costs between them, and each shall bear its fair share of such expenses; and

IV-11

 

     (p) To the extent not already covered in paragraphs (a) through (o) above, Seller shall comply
and/or act in accordance with the provisions of Section 6.4 of the Sale Agreement.

IV-12

 

EXHIBIT V

TERMINATION EVENTS

     Each of the following shall be a “Termination Event”:

     (a) (i) the Seller, Cooper Tire, any Originator or the Servicer shall fail to perform or
observe any term, covenant or agreement under this Agreement or any other Transaction Document and,
except as otherwise provided herein, such failure, solely to the extent capable of cure, shall
continue for 30 days after the earlier of any such Person’s knowledge or notice thereof or (ii) the
Seller or the Servicer shall fail to make when due any payment or deposit to be made by it under
this Agreement or any other Transaction Document and such failure shall remain unremedied for two
Business Days;

     (b) Cooper Tire (or any Affiliate thereof) shall fail to transfer to any successor Servicer,
when required, any rights pursuant to this Agreement that Cooper Tire (or such Affiliate) then has
as Servicer;

     (c) any representation or warranty made or deemed made by the Seller, the Servicer or any
Originator (or any of their respective officers) under or in connection with this Agreement or any
other Transaction Document, or any information or report delivered by the Seller, the Servicer or
any Originator pursuant to this Agreement or any other Transaction Document, shall prove to have
been incorrect or untrue in any material respect when made or deemed made or delivered;

     (d) the Seller or the Servicer shall fail to deliver any Information Package when due pursuant
to this Agreement, and such failure shall remain unremedied for two Business Days after the earlier
of such Person’s knowledge or notice thereof;

     (e) this Agreement or any purchase or reinvestment pursuant to this Agreement shall for any
reason: (i) cease to create, or the Purchased Interest shall for any reason cease to be, a valid
and enforceable first priority perfected undivided percentage ownership or security interest to the
extent of the Purchased Interest in each Pool Receivable, the Related Security and Collections with
respect thereto, free and clear of any Adverse Claim, or (ii) cease to create with respect to the
Pool Assets, or the interest of the Administrator (for the benefit of the Purchasers) with respect
to such Pool Assets shall cease to be, a valid and enforceable first priority perfected security
interest, free and clear of any Adverse Claim;

     (f) the Seller, Cooper Tire, the Servicer or any Originator shall generally not pay its debts
as such debts become due, shall admit in writing its inability to pay its debts generally, or shall
make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or
against the Seller, Cooper Tire, the Servicer or any Originator seeking to adjudicate it a bankrupt
or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment,
protection, relief or composition of it or its debts under any law relating to bankruptcy,
insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or
the appointment of a receiver, trustee, custodian or other similar official for it or for any
substantial part of its property and, in the case of any such proceeding instituted against it (but
not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of

V-1

 

60 days, or any of the actions sought in such proceeding (including the entry of an order for
relief against, or the appointment of a receiver, trustee, custodian or other similar official for,
it or for any substantial part of its property) shall occur; or the Seller, Cooper Tire, the
Servicer or any Originator shall take any corporate action to authorize any of the actions set
forth above in this paragraph;

     (g) (i) the (A) Default Ratio shall exceed 2.0%, (B) Delinquency Ratio shall exceed 4.0%, (ii)
the average for three consecutive calendar months of: (A) the Default Ratio shall exceed 1.5%, (B)
the Delinquency Ratio shall exceed 3.0%, or (C) the Dilution Ratio shall exceed 10.0% or (iii)
Days’ Sales Outstanding exceeds 68 days;

     (h) a Change in Control shall occur;

     (i) the Purchased Interest shall exceed 100% for two (2) Business Days after the earlier of
the Seller’s or Servicer’s knowledge or notice thereof;

     (j) (i) the Seller, Cooper Tire or any of its Subsidiaries shall fail to pay any principal of
or premium or interest on any of its Debt that is outstanding in a principal amount of at least
$10,000,000 in the aggregate when the same becomes due and payable (whether by scheduled maturity,
required prepayment, acceleration, demand or otherwise), and such failure shall continue after the
applicable grace period, if any, specified in the agreement, mortgage, indenture or instrument
relating to such Debt (whether or not such failure shall have been waived under the related
agreement); (ii) any other event shall occur or condition shall exist under any agreement,
mortgage, indenture or instrument relating to any such Debt (as referred to in clause (i)
of this subsection (j)) and shall continue after the applicable grace period, if any,
specified in such agreement, mortgage, indenture or instrument (whether or not such failure shall
have been waived under the related agreement), if the effect of such event or condition is to give
the applicable debtholders the right (whether acted upon or not) to accelerate the maturity of such
Debt (as referred to in clause (i) of this subsection (j)), or (iii) any such Debt
shall be declared to be due and payable, or required to be prepaid (other than by a regularly
scheduled required prepayment), redeemed, purchased or defeased, or an offer to repay, redeem,
purchase or defease such Debt shall be required to be made, in each case before the stated maturity
thereof;

     (k) either the Internal Revenue Service or the Pension Benefit Guaranty Corporation shall have
filed one or more notices of lien asserting a claim or claims pursuant to the Internal Revenue
Code, or ERISA, as applicable, against the assets of Seller, any Originator, Cooper Tire or any
ERISA Affiliate; or

     (l) Cooper Tire shall fail to perform any of its obligations under the Performance Guaranty.

V-2

 

SCHEDULE I

CREDIT AND COLLECTION POLICY

Schedule I-1

 

SCHEDULE II

LOCK-BOX BANKS AND LOCK-BOX ACCOUNTS

 

 

 

 

 

Schedule II-1

 

SCHEDULE III

TRADE NAMES

Cooper Tires

Schedule III-1

 

SCHEDULE IV

ACTIONS AND PROCEEDINGS

None

Schedule IV-1

 

ANNEX A

FORM OF INFORMATION PACKAGE

Annex A-1

 

ANNEX B

FORM OF PURCHASE NOTICE

 

 

 

 

Annex B-1

 

ANNEX C

FORM OF ASSUMPTION AGREEMENT

Dated as of [                          , 20     ]

     THIS ASSUMPTION AGREEMENT (this “AGREEMENT”), dated as of [                          ,           ], is among
COOPER RECEIVABLES LLC (the “Seller”), [                    ], as purchaser (the “[          ] Conduit Purchaser”),
[                    ], as the related committed purchaser (the “[          ] Related Committed Purchaser”),
[                    ], as related lc participant (the “[          ] LC Participant” and together with the Conduit
Purchaser and the Related Committed Purchaser, the “[          ] Purchasers”), and [          ], as agent
for the [          ] Purchasers (the “[          ] Purchaser Agent” and together with the [          ]
Purchasers, the “[                    ] Purchaser Group”).

BACKGROUND

     The Seller and various others are parties to that certain Amended and Restated Receivables
Purchase Agreement dated as of September 14, 2007 (as amended, restated, supplemented or otherwise
modified through the date hereof, the “Receivables Purchase Agreement”). Capitalized terms used and
not otherwise defined herein have the respective meaning assigned to such terms in the Receivables
Purchase Agreement.

     NOW, THEREFORE, the parties hereto hereby agree as follows:

     SECTION 1. This letter constitutes an Assumption Agreement pursuant to Section 1.2(e)
of the Receivables Purchase Agreement. The Seller desires [the [          ] Purchasers] [the [          ]
Related Committed Purchaser][          ] related LC Participant] to [become Purchasers under]
[increase its existing Commitment under] the Receivables Purchase Agreement and upon the terms and
subject to the conditions set forth in the Receivables Purchase Agreement, the [          ]
Purchasers agree to [become Purchasers thereunder] [increase its Commitment in an amount equal to
the amount set forth as the “Commitment” under the signature of such [          ] Related Committed
Purchaser hereto] [increase its Commitment in an amount equal to the amount set forth as the
“Commitment” under the signature of such [          ] related LC Participant hereto].

     Seller hereby represents and warrants to the [          ] Purchasers as of the date hereof, as
follows:

     (i) the representations and warranties of the Seller contained in Exhibit III of the
Receivables Purchase Agreement are true and correct in all material respects on and as the date of
such purchase or reinvestment as though made on and as of such date (except for representations and
warranties which apply as to an earlier date, in which case such representations and warranties
shall be true and correct as of such earlier date);

					
	 	 	 	 	 
	 
	 	Annex C-4
	 	Cooper Receivables Purchase Agreement

Form of Assumption Agreement

 

 

     (ii) no event has occurred and is continuing, or would result from such purchase or
reinvestment, that constitutes a Termination Event or an Unmatured Termination Event; and

     (iii) the Facility Termination Date has not occurred.

     SECTION 2. Upon execution and delivery of this Agreement by the Seller and each member of the
[          ] Purchaser Group, satisfaction of the other conditions to assignment specified in
Section 1.2(e) of the Receivables Purchase Agreement (including the written consent of the
Administrator and each Purchaser Agent) and receipt by the Administrator and Seller of counterparts
of this Agreement (whether by facsimile or otherwise) executed by each of the parties hereto, [the
[          ] Purchasers shall become a party to, and have the rights and obligations of Purchasers
under, the Receivables Purchase Agreement][the [          ] Related Committed Purchaser shall increase
its Commitment in the amount set forth as the “Commitment” under the signature of the [          ]
Related Committed Purchaser hereto][the [          ] related LC Participant shall increase its
Commitment in the amount set forth as the “Commitment” under the signature of the [          ] related
LC Participant hereto].

     SECTION 3. Each party hereto hereby covenants and agrees that it will not institute against,
or join any other Person in instituting against, any Conduit Purchaser, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any
federal or state bankruptcy or similar law, for one year and one day after the latest maturing Note
issued by such Conduit Purchaser is paid in full. The covenant contained in this paragraph shall
survive any termination of the Receivables Purchase Agreement.

     SECTION 4. THIS AGREEMENT SHALL BE DEEMED TO BE A CONTRACT MADE UNDER AND GOVERNED BY THE
INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING FOR SUCH PURPOSE SECTIONS 5-1401 AND 5-1402 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK) EXCEPT TO THE EXTENT THAT THE VALIDITY OR
PERFECTION OF A SECURITY INTEREST OR REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL
ARE GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK. This Agreement may
not be amended, supplemented or waived except pursuant to a writing signed by the party to be
charged. This Agreement may be executed in counterparts, and by the different parties on different
counterparts, each of which shall constitute an original, but all together shall constitute one and
the same agreement.

(continued on following page)

					
	 	 	 	 	 
	 
	 	Annex C-5
	 	Cooper Receivables Purchase Agreement

Form of Assumption Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized
officers as of the date first above written.

	 	 	 	 	 	 	 	 	 	 	 
	 	 	[                    ], as a Conduit Purchaser	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[                    ], as a Related Committed Purchaser	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 
	 	 	[Commitment]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[                    ], as a related LC Participant	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 
	 	 	[Commitment]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[                    ], as Purchaser Agent for [                    ]	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 
	 

	 	 	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 

Annex C-1

 

	 	 	 	 	 	 	 	 	 
	COOPER RECEIVABLES LLC, as Seller	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Consented and Agreed:	 	 
	 
	 	 	 	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION, as Administrator	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	PNC Bank, National Association	 	 
	 	 	 	 	One PNC Plaza	 	 
	 	 	 	 	249 Fifth Avenue	 	 
	 	 	 	 	Pittsburgh, Pennsylvania 15222-2707	 	 
	 
	 	 	 	 	 	 	 	 
	PNC BANK, NATIONAL ASSOCIATION, as LC Bank	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	PNC Bank, National Association	 	 
	 	 	 	 	One PNC Plaza	 	 
	 	 	 	 	249 Fifth Avenue	 	 
	 	 	 	 	Pittsburgh, Pennsylvania 15222-2707	 	 
	 
	 	 	 	 	 	 	 	 
	[THE PURCHASER AGENTS]	 	 
	 
	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	Name Printed:	 	 	 	 
	 

	 	 	 	 	 	 	 
	 

	 	Title: 	 	 	 	 	 	 
	 	 	 	 	 	 

[Address]

Annex C-2

 

ANNEX D

FORM OF TRANSFER SUPPLEMENT

Dated as of [                          , 20     ]

Section 1.

	 	 	 	 	 
	Commitment assigned:
	 	$	                    	 
	Assignor’s remaining Commitment:
	 	$	                    	 
	Capital allocable to Commitment assigned:
	 	$	                    	 
	Assignor’s remaining Capital:
	 	$	                    	 
	Discount (if any) allocable to
Capital assigned:
	 	$	                    	 
	Discount (if any) allocable to Assignor’s
remaining Capital:
	 	$	                    	 

Section 2.

     Effective Date of this Transfer Supplement: [                    ]

     Upon execution and delivery of this Transfer Supplement by transferee and transferor and the
satisfaction of the other conditions to assignment specified in Section 6.3(c) of the
Receivables Purchase Agreement (as defined below), from and after the effective date specified
above, the transferee shall become a party to, and have the rights and obligations of a Committed
Purchaser under, the Amended and Restated Receivables Purchase Agreement, dated as of September 14,
2007 (as amended, restated, supplemented or otherwise modified through the date hereof, the
“Receivables Purchase Agreement”), among Cooper Receivables LLC, as Seller, Cooper Tire & Rubber
Company, LLC, as initial Servicer, the various Purchasers and Purchaser Groups from time to time
party thereto, the various LC Participants from time to time party thereto, and PNC Bank, National
Association, as Administrator and as LC Bank.

Annex D-1

 

ASSIGNOR: [                    ], as a Related Committed Purchaser

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

ASSIGNEE: [                    ], as a Purchasing Related Committed Purchaser

	 	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	[Address]	 	 

	 	 	 	 	 	 	 
	Accepted as of date first above written:	 	 
	 
	 	 	 	 	 	 
	[                    ], as Purchaser Agent for 

the [          ] Purchaser Group	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 

	 	 	 	 	 	 	 
	[Accepted as of the date first
above written]:1	 	 
	 
	 	 	 	 	 	 
	COOPER RECEIVABLES LLC	 	 
	 
	 	 	 	 	 	 
	By:
	 	 	 	 	 	 
	 	 	 	 	 
	 

	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	[Address]	 	 

 

			
	1	 	Consent only required prior to the occurrence
of a Termination Event (such consent not to be unreasonably withheld).

-2-

 

ANNEX E

FORM OF PAYDOWN NOTICE

 

 

 

 

 

Annex E-1

 

ANNEX D

to Receivables Purchase Agreement

ANNEX F

FORM OF LETTER OF CREDIT APPLICATION

                    , [200     ]

PNC Bank, National Association

One PNC Plaza, 26th Floor

249 Fifth Avenue

Pittsburgh, PA 15222-2707

Ladies and Gentlemen:

Reference is hereby made to the Amended and Restated Receivables Purchase Agreement, dated as of
September 14, 2007 (as heretofore amended, supplemented or otherwise modified, the “Receivables
Purchase Agreement”), among Cooper Receivables LLC, as Seller (the “Seller”), Cooper
Tire & Rubber Company, as Servicer, the various Purchasers and Purchaser Agents from time to time
party thereto, the LC Participants from time to time party thereto, and PNC Bank, National
Association, as Administrator and as the LC Bank (the “LC Bank”). Capitalized terms used
in this Letter of Credit Application and not otherwise defined herein shall have the meanings
assigned thereto in the Receivables Purchase Agreement.

This letter constitutes a notice pursuant to Section 1.13(a) of the Receivables Purchase
Agreement. The Seller desires that the LC Bank [issue][transfer] Letters of Credit [currently
issued under the [                    ]] on                     , [20     ], with a face amount of $                     (see
attached schedule for Letters of Credit to be transferred). Subsequent to this transfer, the LC
Participation Amount will be $           and the aggregate outstanding Capital will be $                    .

     Seller hereby represents and warrants as of the date hereof, and as of the date of purchase,
as follows:

     (i) the representations and warranties contained in Exhibit III of the Receivables
Purchase Agreement are true and correct in all material respects on and as of the date of such
purchase as though made on and as of such date (except for representations and warranties which
apply as to an earlier date, in which case such representations and warranties shall be true and
correct as of such earlier date);

     (ii) no event has occurred and is continuing, or would result from such purchase, that
constitutes a Termination Event or Unmatured Termination Event;

     (iii) the sum of the Aggregate Capital plus the LC Participation Amount, after giving effect
to the purchase proposed hereby, shall not be greater than the Purchase Limit, and the Purchased
Interest will not exceed 100%; and

     (iv) the Facility Termination Date shall not have occurred.

Annex F-1

 

ANNEX D

to Receivables Purchase Agreement

IN WITNESS WHEREOF, the undersigned has caused this Letter of Credit Application to be executed by
its duly authorized officer as of the date first above written.

	 	 	 	 	 	 	 	 	 
	 	 	COOPER RECEIVABLES LLC	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	 	 	 
	 

	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 

[Add Schedule of transferred

Letters of Credit, if applicable]

Annex F-2ex101.htm

    

    

                      CHINA
      YINGXIA INTERNATIONAL,
      INC.

    Harbin
      Yingxia Industrial Co., Ltd, No.300, Xidazhi Street Nangang, Harbin Heilongjiang
      F4 150001

     

     

                                                                                  August
      29, 2007

    

    

    Joseph
      Levinson

    PO
      Box
      446

    Grand
      Central Station

    New
      York,
      NY 10163

    

    Dear
      Joe:

    

    We
      are
      pleased to invite you to join the Board of Directors of China Yingxia
      International, Inc., a Florida corporation (the “Company”) subject to the
      effectiveness of the amendment of our Company bylaws to increase the size of
      the
      board of directors from three to nine.  This letter confirms our
      agreement with you regarding your services as a director of the
      Company.  Subject to your acceptance of the position, your service is
      to commence on August 29, 2007 (the “Commencement Date”) where you will serve as
      consult until the effectiveness of the amendment of our bylaws.

    In
      addition, we expect you to perform the following duties:

    

    
      	
              ● 

            	
              Conduct
                investor presentations and investor meetings on behalf of the
                Company.

            

    

    
      	
              ● 

            	
              Interface
                between Company management and
                investors

            

    

    

    As
      compensation for your services, you will receive, commencing with the
      Commencement Date:

    

    
      	
               

            	
              (1)

            	
              an
                annual retainer of USD $36,000 per year (the “Retainer”), payable in equal
                quarterly installments; and

            

    

    
      	
               

            	
              (2)

            	
              an
                annual grant of such number of shares of the Company’s common stock (the
                “Stock Grant”) as equals 120,000 shares, payable in equal quarterly
                installments

            

    

    

    

    Each
      Stock Grant and Stock Option will be fully vested on the date of issuance,
      and
      none of the Retainer nor Stock Grant shall be subject to
      forfeiture.  The Company will promptly register, within thirty days of
      the date of this agreement, all Stock Grants on a Form S-8 registration
      statement, if registration under such form is permissible, or such other form
      of
      registration statement that the Company is permitted to utilize.  The
      Company undertakes to file subsequent registration statements on no less than
      an
      annual basis, for future shares that may be issued.

    

    

    In
      the
      event that the Board of Directors asks that you also be a member of any other
      committee of the Board of Directors, and should you agree to serve, you will
      be
      entitled to additional compensation for service on such other committee, as
      may
      be agreed upon between you and the Board of Directors.

    

    You
      will
      also be reimbursed for reasonable travel and lodging expenses incurred with
      the
      cost of attendance at any Board meeting.  You will also be eligible
      for any future compensatory and/or benefits plans that the Company may adopt
      for
      members of the Company’s Board of Directors or for the independent directors on
      the Company’s Board of Directors.  At no cost to you, the Company will
      be responsible for your Section 16 filings with the Securities and Exchange
      Commission as a director of the Company.

    

    The
      Company agrees to indemnify you, in connection with your services as a director
      to the fullest extent permitted by law under the laws of the jurisdiction in
      which the Company is incorporated.  In addition, the Company agrees to
      maintain officers and directors insurance of no less than $10 million in
      coverage with no more than $10,000 deductible.  The Company will
      indemnify you for the deductible and any and all legal expenses, as
      incurred.

    

    The
      Company represents to you all Company documents and records that are presented
      to you are correct, true and complete.

    

    This
      agreement shall by governed by, construed and enforced in accordance with the
      laws of the State of New York applicable to agreements made and to be performed
      entirely within such State, without regard to the principles of conflict of
      laws  The parties hereto hereby submit to the exclusive jurisdiction
      of the federal and state courts located in New York County in the State of
      New
      York with respect to any dispute arising under this agreement, the agreements
      entered into in connection herewith, or the transactions contemplated hereby
      or
      thereby.  Both parties irrevocably waive the defense of an
      inconvenient forum to the maintenance of such suit or
      proceeding.  Both parties further agree that service of process upon a
      party mailed by federal express (or other similar reputable courier or delivery
      service) shall be deemed in every respect effective service of process upon
      the
      party in any such suit or proceeding.

     

    
      	 	Very
              truly yours,	 
	 	 	 
	 	China
              Yingxia International, Inc.	 
	 	By
              its Board of
              Directors	 
	 	 	 	 
	
               

            	
              By:
                

            	/s/ Yingxia
              Jiao	 
	 	 	Yingxia
              Jiao	 
	 	 	President,
              CEO,
              Director	 
	 	 	 	 

    

    

    

    By:                                           

    Joseph
      Levinson

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