Document:

exv10w21

 

Exhibit 10.21

EMPLOYMENT AGREEMENT

BETWEEN

TETON ENERGY CORPORATION

And

Dominic J. Bazile II

(Executive)

          THIS EMPLOYMENT AGREEMENT(this “Agreement”), dated as of February 1, 2007, (the “Effective
Date”) is entered into by and between Teton Energy Corporation, a Delaware corporation (the
“Company”), and Dominic J. Bazille II, an individual with an address at 7638 Prairie Lake Trail,
Parker, Colorado 80134, (the “Executive”) (collectively, the “Parties,” individually, a “Party”).

W I T N E S S E T H:

          WHEREAS, the Board of Directors of the Company (the “Board”) has requested and the Executive
has agreed to serve the Company as Executive Vice President and Chief Financial Officer pursuant to
the terms and conditions herein;) and

          WHEREAS, the Board has determined that it is in the best
interest of the Company, its affiliates, and its stockholders to assure that the Company will have
the continued dedication of the Executive, notwithstanding the possibility, threat, or occurrence
of a Change in Control (as defined Article Seven herein); and

          WHEREAS, the Board has determined that it is in the best interests of the Company and its
stockholders to indemnify the Executive for claims for damages arising out of or relating to the
performance of such services to the Company in accordance with the terms and conditions set forth
in this Agreement and pursuant to Delaware law; and

          WHEREAS, as an inducement to serve and in consideration for such services, the Company has
agreed to indemnify the Executive for claims for damages arising out of or relating to the
performance of such services to the Company in accordance with the terms and conditions set forth
in a separate agreement, which indemnification agreement is attached as an exhibit hereto and is
incorporated herein by reference; and

          WHEREAS, in order to accomplish these objectives and establish the rights, duties and
obligations of the Parties, which shall be generally stated herein and which may be more fully
stated in other agreements between the Parties, including equity-based agreements, indemnity
agreements, and other employment or incentive related agreements as the Company or the Board may
adopt from time to time, the Board has caused the Company to enter into this Agreement;

          NOW, THEREFORE, in consideration of the premises and the mutual covenants and agreements set
forth herein, the Parties, intending to be legally bound, hereby agree as follows:

 

 

ARTICLE ONE

DEFINITIONS

     1. Definitions. As used in this Agreement:

          1.1 The term “Accrued Obligations,” when used in the case of the Executive’s death or
disability shall mean the sum of (1) that portion Executive’s Base Salary that was not
previously paid to the Executive from the last payment date through the Date of Termination, and
(2) an amount equal to 12 months salary at the level of the Executive’s Base Salary then in effect,

          1.2 The term “Automatic Extension” shall have the meaning set forth in Section 2.2
herein.

          1.3 The term “Base Salary”, shall have the meaning set forth in Section 3.1 herein.

          1.4 The term “Board” shall have the meaning set forth in the recitals.

          1.5 The term “Cause” shall have the meaning set forth in Section 4.3 herein.

          1.6 The term “Common Stock” shall mean the Common Stock, par value $0.001, of the
Company.

          1.7 The term “Compensation Committee” shall mean the Compensation Committee of the
Company.

          1.8 The term “Corporate Documents” shall mean the Company’s Certificate of Incorporation,
as amended and/or its Bylaws, as amended.

          1.9 The term “Effective Date” shall have the meaning set forth in the preamble.

          1.10 The term “Good Reason” shall have the meaning set forth in Section 4.4 herein.

          1.11 The term “Initial Term” shall have the meaning set forth in Section 2.2 herein.

          1.12 The term “Severance Benefit” shall have the meaning set forth in Section 4.8(a)(i)
herein.

          1.13 The term “Without Cause” shall have the meaning set forth in Section 4.3 herein.

          1.14 The term “Without Good Reason” shall have the meaning set forth in Section 4.5
herein.

ARTICLE TWO

POSITION & DUTIES

     2. Employment.

          2.1 Title. The Executive shall serve as the Executive Vice
President and Chief Operating Officer of the Company and agrees to perform services
for the Company and such other affiliates of the Company, as described in Section 2
herein.

 

 

          2.2 Term. The Executive’s employment shall be for an initial term of two (2)
years (“Initial Term”), commencing on the Effective Date. The Executive’s employment shall be
automatically extended on the day after the second year anniversary of the Effective Date
(“Automatic Extension”), and on each second anniversary date thereof, for additional two (2) year
periods unless, with respect to any such Automatic Extension, Executive’s employment is terminated
by either party during the 60-day period prior to such anniversary date as provided in Article
Four.

          2.3 Duties and Responsibilities. The Executive shall report to the CEO and in his
capacity as an officer of the Company shall perform such duties and
services as may be appropriate for a senior executive
and as are assigned to him by the CEO. During the term of this Agreement Executive shall, subject
to the direction of the CEO of the Company, oversee and direct such
assigned operations of the Company and shall perform such duties as are customarily performed by an Executive
Vice President and Chief Operating Officer of an oil and gas
exploration company such as the Company or as are otherwise
delegated to him from time to time by the CEO or such other matters and projects as may from time
to time be reasonably assigned to him by the CEO. The parties further agree that initially the
Executive’s responsibilities will be primarily dedicated to the acquisition of an operated
property; upon the commencement of formal oil and gas operations by
the Company on the operated property, the Company’s organization will be restructured in order to provide the Executive with
such operational oversight as may be customary for a COO in an oil and gas exploration and
production company the size of the company.

          2.4 Performance of Duties. During the term of the Agreement, except as otherwise
approved by the CEO or as provided below, the Executive agrees to devote his full business time,
effort, skill and attention to the affairs of the Company and its subsidiaries, will use his best
efforts to promote the interests of the Company, and will discharge his responsibilities in a
diligent and faithful manner, consistent with sound business practices. The foregoing shall not,
however, preclude Executive from devoting reasonable time, attention and energy in connection with
the following activities, provided that such activities do not materially interfere with the
performance of his duties and services hereunder:

     (a) serving as a director or a member of a committee of any company or
organization, if serving in such capacity does not involve any conflict with the
business of the Company or any subsidiary and such other company or organization is not
in competition, in any manner whatsoever, with the business of the Company or any of its
subsidiaries;

     (b) fulfilling speaking engagements;

     (c) engaging in charitable and community activities;

     (d) managing his personal business and investments; and

     (e) any other activity approved of by the Board. For purposes of this
Agreement, any activity specifically listed on Schedule A shall be considered as having
been approved by the Board.

          2.5 Representations and Warranties of the Executive with Respect to Conflicts, Past
Employers and Corporate Opportunities. The Executive represents and warrants that:

     (a) his employment by the Company will not conflict with any obligations
which he has to any other person, firm or entity;

 

 

     (b) he has not brought to the Company (during the period before the signing
of this Agreement) and he will not bring to the Company any materials or documents of a
former or present employer, nor will be knowingly bring any confidential information or property of any other
person, firm or entity; and

     (c) he will not, without disclosure to and approval of the Board, directly or
indirectly, assist or have an active interest in (whether as a principal, stockholder,
lender, employee, officer, director, partner, venturer, consultant or otherwise) in any
person, firm, partnership, association, corporation or business organization, entity or
enterprise that competes with or is egaged in a business which is substantially similar
to the business of the Company except that ownership of not more than two percent (2%)
of the outstanding securities of any class of any publicly held entity shall not be
deemed a violation of this Section 2.5; provided, further, that any investment
specifically listed on Schedule A shall not be deemed a violation of this Section 2.5.

          2.6 Activities and Interests with Companies Doing Business with the Company. In
addition to those activities and interests of Executive disclosed on Schedule A attached
hereto, Executive shall promptly disclose to the Board, in accordance with the Company’s policies,
full information concerning any interests, direct or indirect, he holds (whether as a principal,
stockholder, lender, executive, director, officer, partner, venturer, consultant or otherwise) in
any business which, as reasonably known to Executive, purchases or provides services or products
to, the Company or any of its subsidiaries, provided that the Executive need not disclose any such
interest resulting from ownership of not more than two (2%) of the outstanding securities of any
class of any publicly held entity.

          2.7
Other Business Opportunities. Nothing in this Agreement shall be deemed to
preclude the Executive from participating in other business opportunities if and to the extent
that: (a) such business opportunities are not directly competitive with, similar to the business of
the Company, or would otherwise be deemed to constitute an opportunity appropriate for the Company,
(b) the Executive’s activities with respect to such opportunities do not have a material adverse
effect on the performance of the Executive’s duties hereunder, and (c) the Executive’s activities
with respect to such opportunity have been fully disclosed in writing to the Board.

          2.8
Reporting Location. For purposes of this Agreement, the Executive’s reporting
location shall be Denver, Colorado, which shall include the metropolitan area within a 40 mile
radius from the Company’s current office.

          2.9 Other. The Company commits that upon the Executive’s completion of one year of
service and assuming the Company has successfully completed an acquisition of an operated property
and
begun formal operations of such property, the Board shall consider the Executive for appointment to
the Company’s Board of Directors and shall consider the Executive for a promotion to the Company’s
president. The Executive understands and agrees that any outcome of such considerations will be
100% at the discretion of the Board and that the failure of the Board to elect the Executive to the
Company’s Board of Directors or to promote the Executive to the Company’s president shall not be
considered.

ARTICLE THREE

COMPENSATION

     3. Compensation.

 

 

          3.1 Base Salary. Executive shall receive an initial annual base salary of Two
Hundred Twenty-Five Thousand Dollars ($225,000.00), payable bi-monthly in arrears (the “Base
Salary”) and subject to all federal, state, and municipal withholding requirements. The Base Salary
shall be reviewed by the CEO, with input from the Board, annually for any increase.

          3.2 Cash Bonus. The Executive shall be eligible for a cash bonus equal to an
amount of up to one hundred percent (100%) of his Base Salary for
each fiscal year he is employed by the Company
(annualized for any fiscal year consisting of less than 12 full months or with respect to which the
Executive has been employed by the Company for less than twelve (12) full months. Each Cash Bonus
shall be paid no later than the end of the third month of the fiscal year next following the fiscal
year in respect of which the Cash Bonus is awarded, unless the Executive shall elect to defer the
receipt of such Cash Bonus that may be approved by the Board from time to time.

          3.3 Equity-Based Compensation. The Executive shall be entitled to participate in
all equity-based compensation plans offered by the Company and as determined by the Board of
Directors. The Executive understands that as of the date of this Agreement, the only equity-based
plan offered by the Company is the 2005 Long-term Incentive Plan.

          Notwithstanding any other provision of this Agreement, effective February 1, 2007, the
Executive shall be entitled to 30,000 restricted shares of Teton common stock, which
shall vest in equal increments over a period of three years and be subject to a restricted stock agreement in a form
substantially similar to the form of agreement in Exhibit B.

     Upon a Change of Control, all equity-based compensation will be treated in the same manner as
if Executive’s employment was terminated by the Company Without Cause.

          3.4 Participation In Benefit Plans.

     (a) Retirement Plans. Executive shall be entitled to
participate, without any waiting or eligibility periods, in all qualified
retirement plans provided to other executive officers and other key employees.

     (b) Taxes. The Company shall pay, on a grossed-up basis for
federal, state, and local income taxes, the amount of any excise tax payable
by Executive as a result of any payments triggered by this Agreement, or
other compensation agreements between Executive and the Company, or any of
its subsidiaries and any income tax payable by Executive as a result of any
payments in Common Stock triggered by this Agreement or other compensation
agreements between Executive and the Company, or any of its subsidiaries,
except as might otherwise be provided such benefit plan.

     (c) Life Insurance. The Executive shall be entitled to life
insurance on terms consistent with that provided to other senior executives
of the Company as may be authorized by the Board from time to time.

     (d) Employee Benefit Plans and Insurance. The Executive
shall have the right to participate in employee benefit plans and insurance
programs of the Company that the Company may sponsor from time to time and to
receive customary Company benefits, if those benefits are so offered
to other senior executive of the Company. Nothing
herein shall obligate the Executive to accept such benefits if and when they
are offered.

 

 

     (e) Vacation.

     (i) The Executive shall be entitled to four (4) weeks
of vacation per calendar year, which vacation level shall be
reviewed by the CEO from time to time. No more than 1.5 times
(1.5x) Executive’s authorized annual vacation allocation may be
accrued, at any given time. In the event that Executive has
reached his maximum authorized vacation allocation, accrual will
not re-commence until Executive uses some of his paid vacation
credit and thereby brings the balance below his maximum. Accrued
paid vacation credit forfeited because of an excess balance can
not be retroactively reapplied.

     (ii) Pay will only be provided for any unused, accrued
paid vacation credit at the time of Executive’s separation from
the business by the Company due to a reduction in force, by
Executive upon retirement, or upon the death of an employee,
provided that Executive has been a regular full-time employee
for three calendar months prior to such event. Termination of
employment for Cause by the Company, or Executive’s resignation,
will result in the forfeiture of any unused paid vacation
credit.

     (f) Paid Holidays. The Executive shall be entitled to such
paid holidays as are generally available to all employees. As of the date of
this Agreement, the Company’s employees are permitted to observe ten (10) paid
holidays.

     (g) Reimbursement of Expenses. Executive shall be entitled to
reimbursement within a reasonable time for all properly documented and
approved expenses for travel. The Company shall reimburse business expenses of
Executive directly related to Company business, including, but not limited to,
airfare, lodging, meals, travel expenses, medical expenses while traveling not
covered by insurance, business entertainment, expenses associated with
entertaining business persons, local expenses to governments or governmental
officials, tariffs, applicable taxes outside of the United States, special
expenses associated with travel to certain countries, supplemental life
insurance or supplemental insurance of any kind or special insurance rates or
charges for travel outside the United States (unless such insurance is being
provided by the Company), rental cars and insurance for rental cars, and any
other expenses of travel
that are reasonable in nature or that have been otherwise pre-approved.
Executive shall be governed by the travel and entertainment policy in effect
at the Company.

          3.5 Relocation Expenses. In the event that Executive is required to move from his
primary residence and consents to such move, then Executive shall be provided with relocation
assistance as provided below:

     (a) Housing and Temporary Lodging. The Company will pay
the costs for the Executive and his family of house-hunting trips and the
cost of transporting Executive, his spouse, furniture, household effects,
and vehicles, to the area in which the Company will be headquartered. In
addition, the Company will pay the cost of Executive’s travel, temporary
living expenses, including housing, whether hotel or apartment, and meals,
during the period prior to Executive’s move to the city in which the Company
will be headquartered.

          3.6 Severance Benefit. In the event that Executive’s employment is terminated,
other than for Cause, Executive shall receive compensation pursuant to Section 4.8 herein.

 

 

          3.7 Payroll Procedures and Policies. All payments required to be made by the Company to
the Executive pursuant to this Article Three shall be paid on a regular basis in accordance with
the Company’s normal payroll procedures and policies.

ARTICLE FOUR

TERMINATION OF EMPLOYMENT

          4.1 Death. The Executive’s employment shall terminate automatically upon the
Executive’s death during the Employment Term.

          4.2 Disability. If the Company determines in good faith that the Disability (as
defined below) of the Executive has occurred during the Employment Term, the Company may give the
Executive notice of its intention to terminate the Executive’s employment. In such event, the
Executive’s employment hereunder shall terminate effective on
the 30th day after receipt of such
notice by the Executive (the “Disability Effective Date”); provided, that, within the 30-day period
after such receipt, the Executive shall not have returned to full-time performance of the
Executive’s duties. For purposes of this Agreement, “Disability” shall mean the absence of the
Executive from the Executive’s duties hereunder on a full-time basis for an aggregate of 180 days
within any given period of 270 consecutive days (in addition to any statutorily required leave of
absence and any leave of absence approved by the Company) as a result of the incapacity of the
Executive, despite any reasonable accommodation required by law, due to bodily injury or disease or
any other mental or physical illness, which will, in the opinion of a physician selected by the
Company or its insurers and acceptable to the Executive or the Executive’s legal representative, be
permanent and continuous during the remainder of the Executive’s life.

          4.3 Termination by Company.

          (a) Termination for Cause.

     The Company may terminate the Executive’s employment hereunder for Cause (as
defined below). For purposes of this Agreement, “Cause” shall mean:

     (i) the willful and continued failure of the Executive to perform
substantially the Executive’s duties hereunder (other than any such failure
resulting from bodily injury or disease or any other incapacity due to
mental or physical illness) after a written demand for substantial
performance is delivered to the Executive by the Board or the Chief
Executive Officer of the Company, which specifically identifies the manner
in which the Board or the Chief Executive Officer
of the Company believes the Executive has not substantially performed the
Executive’s duties; or

     (ii) the willful engaging by the Executive in illegal conduct or gross
misconduct that is materially and demonstrably detrimental to the Company
and/or its affiliated companies, monetarily or otherwise.

     For purposes of this provision, no act, or failure to act, on the part
of the Executive shall be considered “willful” unless done, or omitted to
be done, by the Executive in bad faith or without reasonable belief that
the Executive’s action or omission was in the best interests of the
Company. Any act, or failure to act, based upon authority given pursuant to
a resolution duly adopted by the Board, upon the instructions of the Chief
Executive Officer or another senior officer of Company, or based upon the
advice of counsel for the Company shall be conclusively presumed to be
done, or omitted

 

 

to be done, by the Executive in good faith and in the best
interests of the Company and its affiliated companies. The cessation of
employment of the Executive shall not be deemed to be for Cause unless and
until there shall have been delivered to the Executive a copy of a
resolution duly adopted by the affirmative vote of not less than two-thirds
of the entire membership of the Board then in office at a meeting of the
Board called and held for such purpose (after reasonable notice is provided
to the Executive and the Executive is given an opportunity, together with
counsel, to be heard before the Board) finding that, in the good faith
opinion of the Board, the Executive is guilty of the conduct described in
subparagraph (i) or (ii) above, and specifying the particulars thereof in
detail.

     (iii) the Executive’s conviction of, or plea of nolo contendere
to, any felony of theft, fraud, embezzlement or violent crime.

          (b) Termination without Cause.

     All terminations by the Company that are not for Cause, or on the occasion of the
Executive death or disability, or that are not terminated during the 60-day period
prior to any anniversary date as provided in Section 2.2 or Section 4.5, shall be
considered Without Cause.

          4.4 Termination by Executive. The Executive may terminate the Executive’s
employment hereunder (x) at any time during the Employment Term for Good Reason (as defined below)
or (y) during the Window Period (as defined below) Without Good Reason. For purposes of this
Agreement, the “Window Period” shall mean the 30-day period immediately following the first
anniversary of the Effective Date, and “Good Reason” shall mean any of the following (without the
Executive’s express written consent):

     (a) The assignment to the Executive of any duties inconsistent in
any respect with the Executive’s position (including status, offices, titles
and reporting requirements), duties, functions, responsibilities or authority
as contemplated by Section 2.3 of this Agreement, or any other action by the
Company that results in a diminution in such position, duties, functions,
responsibilities or authority, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Executive;

     (b) Any failure by the Company to comply with any of the provisions
of Section 2.3 of this Agreement, other than an isolated, insubstantial and
inadvertent action not taken in bad faith and which is remedied by the Company
promptly after receipt of notice thereof given by the Executive;

     (c) The Company’s requiring the Executive to be based at any office
or location other than as provided in Section 2.8 of this Agreement or the
Company’s requiring the Executive to travel on the Company’s or its affiliated
companies’ business to a substantially greater
extent than during the three-year period immediately preceding the Effective
Date;

     (d) Any failure by the Company to provide Executive with the
compensation provided for in Article III, which is not remedied by the
Company after notice thereof given by Executive;

     (e) Any failure by the Company to comply with and satisfy Section 8.1 of
this Agreement; or

 

 

     (f) Any purported termination by the Company of the Executive’s
employment hereunder otherwise than as expressly permitted by this Agreement,
and for purposes of this Agreement, no such purported termination shall be
effective.

For purposes of this Section 4.4, any good faith determination of “Good Reason” made by the
Executive shall be conclusive.

          4.5 Termination without Prejudice. The Company or Executive may terminate this
Agreement at any time during the 60-day period prior to the Automatic Extension.

          4.6 Notice of Termination. Any termination of the Executive’s employment
hereunder by the Company or by the Executive (other than a termination pursuant to Section 4.1)
shall be communicated by a Notice of Termination (as defined below) to the other party hereto. For
purposes of this Agreement, a “Notice of Termination” shall mean a notice which (a) indicates the
specific termination provision in this Agreement relied upon, (b) in the case of a termination for
Disability, Cause or Good Reason, sets forth in reasonable detail the facts and circumstances
claimed to provide a basis for termination of the Executive’s employment under the provision so
indicated, and (c) specifies the Date of Termination (as defined
in Section 4.7 below); provided,
however, that notwithstanding any provision in this Agreement to the contrary, a Notice of
Termination given in connection with a termination for Good Reason
shall be given by the Executive,
within a reasonable period of time, not to exceed 120 days, following the occurrence of the event
giving rise to such right of termination. The failure by the Company or the Executive to set forth
in the Notice of Termination any fact or circumstance which contributes to a showing of Disability,
Cause or Good Reason shall not waive any right of the Company or the Executive hereunder or
preclude the Company or the Executive from asserting such fact or circumstance in enforcing the
Company’s or the Executive’s rights hereunder.

          4.7 Date of Termination. For purposes of this Agreement, the “Date of
Termination” shall mean the effective date of termination of the Executive’s employment hereunder,
which date shall be (a) if the Executive’s employment is terminated by the Executive’s death, the
date of the Executive’s death, (b) if the Executive’s employment is terminated because of the
Executive’s Disability, the Disability Effective Date, (c) if the Executive’s employment is
terminated by the Company (or applicable affiliated company) for Cause or by the Executive for Good
Reason, the date on
which the Notice of Termination is given, (d) if the Executive’s employment is terminated pursuant
to Section 2.2, the date on which the Employment Term ends pursuant to Section 2.2 due to a party’s
delivery of a Notice of Termination thereunder, and (e) if the Executive’s employment is terminated
for any other reason, the date specified in the Notice of Termination, which date shall in no event
be earlier than the date such notice is given; provided, however, that if within 30 days after any
Notice of Termination is given, the party receiving such Notice of Termination notifies the other
party that a dispute exists concerning the termination, the Date of Termination shall be the date
on which the dispute is finally determined, either by mutual written agreement of the parties or by
a final judgment, order or decree of a court of competent jurisdiction (the time for appeal
therefrom having expired and no appeal having been perfected).

          4.8 Obligations of the Company upon Termination.

     (a) Good Reason or During the Window Period; Other Than for
Cause, Death or Disability. If, during the Employment Term, the Company
(or applicable affiliated company) shall terminate the Executive’s employment
hereunder other than for Cause or Disability or the Executive shall terminate
the Executive’s employment either for Good Reason or Without Good Reason
during the Window Period:

 

 

     (i) the Company shall pay to the Executive (either in a lump sum or on in equal monthly
installments over a 12-month period after the Date of Termination, at the Company’s option) the sum
of (1) the that portion Executive’s Base Salary that was not previously paid to the Executive from
the last payment date through the Date of Termination, and (2) an amount equal 12 months salary at
the level of the Executive’s Base Salary then in effect, (such 12 months amount is hereinafter
referred to as the “Severance Amount”);

     (ii) all stock options, stock appreciation rights, and restricted stock shall immediately
vest;

     (iii) all stock options and stock appreciation rights shall be payable in Common Stock;

     (iv) all performance share units that would vest in the course of any fiscal
year shall vest on a pro rata basis; and

     (v) the Company shall pay, on a grossed-up basis (as determined in the same manner as
under Section 3.4(b) herein) the amount of any excise and income taxes payable by Executive as
a result of any payments in Common Stock triggered by this Agreement, or other agreements
between Executive and the Company, or any of its subsidiaries.

To the extent not theretofore paid or provided, the Company shall timely pay or provide to the
Executive any other amounts or benefits required to be paid or provided or which the Executive is
eligible to receive under any plan, program, policy, practice or arrangement or contract or
agreement of the Company and its affiliated companies (such other amounts and benefits hereinafter
referred to as the “Other Benefits”).

     (b) Death. If the Executive’s employment is terminated by reason of
the Executive’s death during the Employment Term, this Agreement shall terminate without
further compensation obligations to the Executive’s legal representatives under this
Agreement, other than for (i) payment of Accrued Obligations
(which shall be paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 90
days of the Date of Termination) and the timely payment or settlement of any other
amount pursuant the Other Benefits and (ii) treatment of all other compensation under
existing plans as provided by the terms and rules of those plans.

     (c) Disability. If the Executive’s employment is terminated by reason of
the Executive’s Disability during the Employment Term, this Agreement shall terminate
without further compensation obligations to the Executive, other than for (i) payment of
Accrued Obligations (which shall be paid to the Executive in a lump sum in cash within 90
days of the Date of Termination) and the timely payment or settlement of any other amount
pursuant to the Other Benefits and (ii) treatment of all other compensation under existing
plans as provided by the terms and rules of those plans.

     (d) Cause; Other than for Good Reason or During
the Window Period. If the Executive’s employment is terminated for
Cause during the Employment Term, this Agreement shall terminate without
further compensation obligations to the Executive other than the
obligation to pay to the Executive Base Salary through the Date of

 

 

Termination plus the amount of any compensation previously deferred by the
Executive, in each case to the extent theretofore unpaid and to
reimburse expenses pursuant to Section 3.4(g) incurred prior to the
Termination Date. If the Executive
voluntarily terminates the Executive’s employment during the Employment Term,
excluding a termination either for (i) Good Reason or (ii) Without Good
Reason during the Window Period, this Agreement shall terminate without
further compensation obligations to the Executive, other than for the that
portion Executive’s Base Salary that was not previously paid to the Executive
from the last payment date through the effective date of the Executive’s
voluntary termination plus the amount of any compensation previously
deferred by the Executive, in each case to the extent theretofore
unpaid, to reimburse expenses pursuant to Section 3.4(g) incurred
prior to the Termination Date and the timely payment or provision of the Other
Benefits, as provided in any applicable plan, and the Executive shall have no
further obligations nor liability to Company. In such case, any amounts owed
to the Executive shall be paid to the Executive in a lump sum in cash within
90 days of the Date of Termination subject to applicable laws and
regulations.

          4.9 Continuation of Payments During Disputes. The Parties agree that in the case
of:

     (a) termination which the Company contends is for Cause, but
Executive claims is not for Cause; or

     (b) termination by Executive under Section 4.4 herein,

the Company shall continue to pay all compensation due to Executive hereunder until the resolution
of such dispute, but the Company shall be entitled to repayment of all sums so paid, if it
ultimately shall be determined by a court of competent jurisdiction, in a final non-appealable
decision, that the termination was for Cause or such termination by Executive was not authorized
under Section 4.4 herein, and all sums so repaid shall bear interest at the prime rate as published
in The Wall Street Journal on the date on which such court makes such determination. Any such
reimbursement of payments by Executive shall not include any legal fees or other loss, costs, or
expenses incurred by the Company, notwithstanding any provision of the Indemnification Agreement,
which is attached as Exhibit A and is considered a part of this Agreement.

ARTICLE FIVE

INDEMNIFICATION

     5. Indemnification. The Executive shall be indemnified and held harmless
pursuant to the terms and conditions set forth in the Indemnification Agreement substantially in
the form attached as Exhibit A hereto.

ARTICLE SIX

CONFIDENTIALITY

     6. Confidentially; Non-Competition; and Non-Solicitation.

          6.1 Confidentiality. In consideration of employment by the Company and Executive’s
receipt of the salary and other benefits associated with Executive’s employment, and in

 

 

acknowledgment that (a) the Company is engaged in the oil and gas business, (b) maintains secret
and confidential information, (c) during the course of Executive’s employment by the Company such
secret or confidential information may become known to Executive, and (d) full protection of the
Company’s business makes it essential that no employee appropriate for his or her own use, or
disclose such secret or confidential information, Executive agrees that during the time of
Executive’s employment and for a period of one (1) year following the termination of Executive’s
employment with the Company, Executive agrees to hold in strict confidence and shall not, directly
or indirectly, disclose or reveal to any person, or use for his own personal benefit or for the
benefit of anyone else, any trade secrets, confidential dealings, or other confidential or
proprietary information of any kind, nature, or description (whether or not acquired, learned,
obtained, or developed by Executive alone or in conjunction with others) belonging to or concerning
the Company or any of its subsidiaries, except (i) with the prior written consent of the Company
duly authorized by its Board, (ii) in the course of the proper performance of Executive’s duties
hereunder, (iii) for information (x) that becomes generally available to the public other than as a
result of unauthorized disclosure by Executive or his affiliates or (y) that becomes available to
Executive on a nonconfidential basis from a source other than the Company or its subsidiaries who
is not bound by a duty of confidentiality, or other contractual, legal, or fiduciary obligation, to
the Company, or (iv) as required by applicable law or legal process. Notwithstanding the forgoing,
this Section is not intended, nor shall be construed, to prohibit Executive’s general knowledge,
skill and experience or Executive’s inventive powers.

          6.2 Non-Competition. During Executive’s employment with the Company and for so
long as Executive receives any Severance Benefit or is receiving any Severance Amount provided
under this agreement in respect of the termination of his employment, Executive shall not be
engaged as an officer or executive of, or in any way be associated in a management or ownership
capacity with any corporation, company, partnership or other enterprise or venture which conducts a
business which is in direct competition with the business of the Company; provided, however, that
Executive may own not more than two percent (2%) of the outstanding securities, or equivalent
equity interests, of any class of any corporation, company, partnership, or either enterprise that
is in direct competition with the business of the Company, which securities are listed on a
national securities exchange or traded in the over-the-counter market. For purposes of this
Agreement, a lump sum payment equivalent made to Executive shall be judged in relation to his most
recent annual base salary to determine whether Executive is continuing to receive a Severance
Benefit or Severance Amount and shall be measured from the date such payment is received. It is
expressly agreed that the remedy at law for breach of this covenant is inadequate and that
injunctive relief shall be available to prevent the breach thereof.

          6.3
Non-Solicitation. Executive also agrees that he will not, directly or indirectly,
during the term of his employment or within one (1) year after termination of his employment for
any reason, in any manner, encourage, persuade, or induce any other employee of the Company to
terminate his employment, or any person or entity engaged by the Company to represent it to
terminate that relationship without the express written approval of the Company. It is expressly
agreed that the remedy at law for breach of this covenant is inadequate and that injunctive relief
shall be available to prevent the breach thereof.

ARTICLE SEVEN

CHANGE OF CONTROL

     7. Certain
Definitions.

 

 

          7.1
Change of Control Effective Date. The “Change of Control Effective Date”
shall mean the first date during the Change of Control Period (as defined in Section 7.2) on which
a Change of Control occurs. Notwithstanding anything in this Agreement to the contrary, if a Change
of Control occurs and if the Executive’s employment with the Company (or applicable affiliated
company) is terminated prior to the date on which the Change of Control occurs, and if it is
reasonably demonstrated by the Executive that such termination of employment (i) was at the
request of a third party who has taken steps reasonably calculated to effect a Change of Control or
(ii) otherwise arose in connection with or anticipation of a Change of Control, then for all
purposes of this Agreement the “Change of Control Effective Date” shall mean the date immediately
prior to the date of such termination of employment.

          7.2 Change of Control Period. The “Change of Control Period” shall mean the
period commencing on the date of this Agreement and ending on the third anniversary of such date;
provided, however, that commencing on the date one year after the date hereof, and on each annual
anniversary of such date (such date and each annual anniversary thereof herein referred to as the
“Renewal Date”), the Change of Control Period shall be automatically extended so as to terminate
three years after such Renewal Date, unless at least 60 days prior to the Renewal Date the Company
shall give notice to the Executive that the Change of Control Period shall not be so extended.

          7.3 Change of Control. For purposes of this Agreement, a “Change of Control”
shall mean:

     (a) the acquisition by any individual, entity or group (within the
meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a “Person”) of
beneficial ownership (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) of 15% or more of either (A) the then outstanding Common Shares
the Company (the “Outstanding Shares”) or (B) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally
in the election of directors (the “Outstanding Voting Securities”); provided,
however, that for purposes of this Subsection 7.3(a) the following
acquisitions shall not constitute a Change of Control: (w) Company-sponsored
recapitalization that is approved by the Incumbent Board, as defined below;
(x) a capital raise initiated by the Company where the Incumbent Board remains
for at least at least 548 days after the closing date of the raise, or (y) an
acquisition of another company or asset(s) initiated by the Company and where
the Company’s shareholders immediately after the transaction own at least 51% of the equity of the
combined concern; or

     (b) individuals who, as of the date of this Agreement, constitute
the Company’s Board (the “Incumbent Board”) cease for any reason to constitute
a majority of such Board of Directors; provided, however, that any individual
becoming a director of the Company shareholders subsequent to the date hereof
whose election, or nomination for election by the Company’s shareholders was
approved by a vote of a majority of the directors of the Company then
comprising the Incumbent Board shall be considered as though such individual
were a member of the Incumbent Board, but excluding, for this purpose, any
such individual whose initial assumption of office occurs as a result of
either an actual or threatened election contest or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Company Board; or

     (c) consummation of a reorganization, merger, amalgamation or
consolidation of the Company, with or without approval by the shareholders of
the Company, in each case, unless, following such reorganization, merger,
amalgamation or consolidation, (i) more than 50% of, respectively, the then
outstanding shares of common stock (or equivalent security) of the company
resulting from such reorganization, merger,

 

 

amalgamation or consolidation and the combined voting power of the then
outstanding voting securities of such company entitled to vote generally in
the election of directors is then beneficially owned, directly or indirectly,
by all or substantially all of the individuals and entities who were the
beneficial owners, respectively, of the Outstanding Shares and Outstanding
Voting Securities immediately prior to such reorganization, merger,
amalgamation or consolidation in substantially the same proportions as their
ownership, immediately prior to such reorganization, merger, amalgamation or
consolidation, of the Outstanding Shares and Outstanding Voting Securities, as
the case may be, (ii) no Person (excluding a parent of the Company that may
come into being after the date of this Agreement through any transaction
deliberately undertaken by the Company after an affirmative vote of its
Incumbent Directors and the Company shareholders), any employee benefit plan
(or related trust) of the Company or such company resulting from such
reorganization, merger, amalgamation or consolidation, and any Person
beneficially owning, immediately prior to such reorganization, merger,
amalgamation or consolidation, directly or indirectly, 15% or more of the
Outstanding Shares or Outstanding Voting Securities, as the case may be)
beneficially owns, directly or indirectly, 15% or more of, respectively, the
then outstanding shares of common stock (or equivalent security) of the
company resulting from such reorganization, merger, amalgamation or
consolidation or the combined voting power of the then outstanding voting
securities of such company entitled to vote generally in the election of
directors, and (ii) a majority of the members of the board of directors of the
company resulting from such reorganization, merger, amalgamation or
consolidation were members of the Incumbent Board at the time of the execution
of the initial agreement providing for such reorganization, merger,
amalgamation or consolidation; or

     (d) consummation of a sale or other disposition of all or substantially
all the assets of the Company, with or without approval by the shareholders
of the Company, other than to a corporation, with respect to which following
such sale or other disposition, (i) more than 50% of, respectively, the then
outstanding shares of common stock (or equivalent security) of such
corporation and the combined voting power of the then outstanding voting
securities of such corporation entitled to vote generally in the election of
directors is then beneficially owned, directly or indirectly, by all or
substantially all the
individuals and entities who were the beneficial owners, respectively,
of the Outstanding Shares and Outstanding Voting Securities immediately prior
to such sale or other disposition in substantially the same proportion as
their ownership, immediately prior to such sale or other disposition, of the
Outstanding Shares and Outstanding Voting Securities, as the case may be,
(ii) no Person (excluding the Company, any employee benefit plan (or related
trust) of the Company or such corporation, and any Person beneficially
owning, immediately prior to such sale or other disposition, directly or
indirectly, 15% or more of the Outstanding Shares or Outstanding Voting
Securities, as the case may be) beneficially owns, directly or indirectly,
15% or more of, respectively, the then outstanding shares of common stock (or
equivalent security) of such corporation or the combined voting power of the
then outstanding voting securities of such corporation entitled to vote
generally in the election of directors, and (C) a majority of the members of
the board of directors of such corporation were members of the Incumbent
Board at the time of the execution of the initial agreement or action of the
Incumbent Board providing for such sale or other disposition of assets of the
Company; or

     (e) approval by the shareholders of the Company of a complete
liquidation or dissolution of the Company.

 

 

ARTICLE EIGHT

MISCELLANEOUS

     8. Miscellaneous.

          8.1 Benefit. This Agreement shall inure to the benefit of and be binding upon
each of the Parties, and their respective successors. This Agreement shall not be assignable by any
Party without the prior written consent of the other Party. The Company shall require any
successor, whether direct or indirect, to all or substantially all the business and/or assets of
the Company to expressly assume and agree to perform, by instrument in a form reasonably
satisfactory to Executive, this Agreement and any other agreements between Executive and the
Company or any of its subsidiaries, in the same manner and to the same extent as the Company.

          8.2
Governing Law. This Agreement shall be governed by, and construed in
accordance with the laws of the State of Colorado without resort to any principle of conflict of
laws that would require application of the laws of any other jurisdiction; provided, however, that
Delaware law shall govern with respect to the Executive’s rights under a Change of Control under
Article Seven herein.

          8.3
Counterparts. This Agreement may be executed in counterparts and via
facsimile, each of which shall be deemed to constitute an original, but all of which together shall
constitute one and the same Agreement. Each such counterpart shall become effective when one
counterpart has been signed by each Party thereto.

          8.4
 Headings. The headings of the various articles and sections of this Agreement
are for convenience of reference only and shall not be deemed a part of this Agreement or
considered in construing the provisions thereof.

          8.5 Severability. Any term or provision of this Agreement that shall be
prohibited or declared invalid or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or declaration, without invalidating the
remaining terms and provisions hereof or affecting the validity or enforceability of
such provision in any other jurisdiction, and if any term or provision of this Agreement is held by
any court of competent jurisdiction to be void, voidable, invalid or unenforceable in any given
circumstance or situation, then all other terms and provisions hereof, being severable, shall
remain in full force and effect in such circumstance or situation, and such term or provision shall
remain valid and in effect in any other circumstances or situation.

          8.6 Construction. Use of the masculine pronoun herein shall be deemed to refer to
the feminine and neuter genders and the use of singular references shall be deemed to include the
plural and vice versa, as appropriate. No inference in favor of or against any Party shall be drawn
from the fact that such Party or such Party’s counsel has drafted any portion of this Agreement.

          8.7 Equitable Remedies. The Parties hereto agree that, in the event of a breach
of this Agreement by either Party, the other Party, if not then in breach of this Agreement, may be
without an adequate remedy at law owing to the unique nature of the contemplated relationship. In
recognition thereof, in addition to (and not in lieu of) any remedies at law that may be available
to the non-breaching Party, the non-breaching Party shall be entitled to obtain equitable relief,
including the remedies of specific performance and injunction, in the event of a breach of this
Agreement, by the Party in breach, and no attempt on the part of the non-breaching Party to obtain
such equitable relief shall be deemed to constitute an election of remedies by the non-breaching
Party that would preclude the non-breaching Party from obtaining any remedies at law to which it
would otherwise be entitled.

 

 

          8.8 Attorney’s Fees. If any Party hereto shall bring an action at law or in
equity to enforce its rights under this Agreement, the prevailing Party in such action shall be
entitled to recover from the Party against whom enforcement is sought its costs and expenses
incurred in connection with such action (including fees, disbursements and expenses of attorneys
and costs of investigation). In the event that Executive institutes any legal action to enforce
Executive’s legal rights hereunder, or to recover damages for breach of this Agreement, Executive,
if Executive prevails in whole or in part, shall be entitled to recover from the Company reasonable
attorneys’ fees and disbursements incurred by Executive with respect to the claims or matters on
which Executive has prevailed.

          8.9 No Waiver. No failure, delay or omission of or by any Party in exercising any
right, power or remedy upon any breach or default of any other Party, or otherwise, shall impair
any such rights, powers or remedies of the Party not in breach or default, nor shall it be
construed to be a waiver of any such right, power or remedy, or an acquiescence in any similar
breach or default; nor shall any waiver of any single breach or default be deemed a waiver of any
other breach or default theretofore or thereafter occurring. Any waiver, permit, consent or
approval of any kind or character on the part of any Party of any provisions of this Agreement must
be in writing and be executed by the Parties and shall be effective only to the extent specifically
set forth in such writing.

          8.10 Remedies Cumulative. All remedies provided in this Agreement, by law or
otherwise shall be cumulative and not alternative.

          8.11 Amendment. This Agreement may be amended only by a writing signed by all of
the Parties hereto.

          8.12 Entire Contract. This Agreement and the documents and instruments referred to
herein constitute the entire contract between the parties to this Agreement and supersede all other
understandings, written or oral, with respect to the subject matter of this Agreement.

          8.13 Survival. This Agreement shall constitute a binding obligation of the Company
and any successor thereto. Notwithstanding any other provision in this Agreement, the obligations
under Articles 5 and 6 shall survive termination of this Agreement.

          8.14
Savings Clause. Notwithstanding any other provision of this Agreement, if the
indemnification provisions in Exhibit A hereto or any portion thereof shall be invalidated on any
ground by any court of competent jurisdiction, then the Company shall nevertheless indemnify
Executive as to Expenses, judgments,
fines, penalties and amounts paid in settlement with respect to any Proceeding to the full extent
permitted by any applicable portion of this Agreement that shall not have been invalidated and to
the fullest extent permitted by applicable law.

          8.15
Modifications and Waivers. Notwithstanding any other provision of this
Agreement, the indemnification provisions in Exhibit A hereto and the Change of Control provisions
Article Seven herein, may be amended from time to time to reflect changes in Delaware law or for
other reasons.

          8.16 Notices. All notices, requests, demands and other communications hereunder
shall be in writing and shall be deemed to have been given (i) when delivered by hand or (ii) if
mailed by certified or registered mail with postage prepaid, on the third day after the date on
which it is so mailed:

 

 

     (a)
If to Executive:

Dominic J. Bazile II

7638 Prairie Lake Trail

Parker, CO 80134

     (b) If to the Company:

Teton Energy Corporation

410 17th
Street — Suite 1850

Denver, CO 80202

Attn: CEO

or to such other address as may have been furnished to Executive by the Company or to the Company
by Executive, as the case may be.

          8.17 No Limitation. Notwithstanding any other provision of this Agreement, for
avoidance of doubt, the parties confirm that the foregoing does not apply to or limit Executive’s
rights under Delaware law or the Company’s Corporate Documents.

          8.18
 Non-Binding Mediation. Before commencing any legal proceeding in any court of law, any controversy arising out of or e
relating to this Agreement, its enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with
any of its provision, or any other controversy arising out of Executive’s employment, including, but not limited to any state or
federal statutory claims, shall first be submitted to non-binding mediation in Denver, Colorado, before a sole mediator selected from
Judicial Arbitration and Mediation Services, Inc., Denver, Colorado,
or its successor (“JAMS”), or if JAMS is no longer able to
supply the mediator, such mediator shall be selected from the American Arbitration Association, provided, however, that provisional injunctive relief may, but
need not, be sought by either party to this Agreement in a court of law while mediation proceedings are pending

          IN
WITNESS WHEREOF, the parties have set their hands and seals hereunto on the date first
above written.

	 	 	 	 	 	 	 
	Teton Energy Corporation

	 	EXECUTIVE
	 	 
	 	 
	 	 	 	 	 
	By:	
/s/ Karl F. Arleth

	 	By:	/s/ Dominic J.Bazile II	 	 
	 	 

	 	 	 	 	 
	Name: Karl F. Arleth

	 	Name: Dominic J. Bazile II	 	 
	Title: President & CEO
	 	 	 	 	 

 

 

Schedule A

Outside Activities

Dominic J. Bazile II

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Date Hired	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	or	 	 	 	 	 	 	 	 	 	 	Annual Time	 
	Company or	 	Nature of	 	 	Commenced	 	 	 	 	 	 	 	 	 	 	Commitment, (time	 
	Project Name	 	Business	 	 	Involvement	 	 	Position	 	 	Compensation	 	 	away from office)	 
	 
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 

Dated:
February 1, 2007

	 	 	 	 	 	 	 	 	 
	Initials: Executive:

	 	 	 	Company:
	 	 	 	 
	 

	 	 
	 	 	 	 	 	 

[Executive and Company agree that there are no outside activities]

 

 

Exhibit A

Indemnification Agreement

 

 

Exhibit B

Form of Restricted Stock Agreementexv4w1

 

EXHIBIT 4.1

NISSAN AUTO RECEIVABLES _______ OWNER TRUST

(a Delaware Statutory Trust)

AMENDED AND RESTATED TRUST AGREEMENT

between

NISSAN AUTO RECEIVABLES CORPORATION II,

as Depositor,

and

WILMINGTON TRUST COMPANY,

as Owner Trustee

Dated as of _______, 200_

(Nissan _____ Amended and

Restated Trust Agreement)

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	ARTICLE I
	DEFINITIONS
	SECTION 1.01
	 	Definitions	 	 	1	 
	SECTION 1.02
	 	Usage of Terms	 	 	4	 
	ARTICLE II
	CREATION OF TRUST
	SECTION 2.01
	 	Creation of Trust	 	 	5	 
	SECTION 2.02
	 	Office	 	 	5	 
	SECTION 2.03
	 	Purposes and Powers	 	 	5	 
	SECTION 2.04
	 	Power of Attorney	 	 	6	 
	SECTION 2.05
	 	Declaration of Trust	 	 	6	 
	SECTION 2.06
	 	Liability of the Certificateholders	 	 	7	 
	SECTION 2.07
	 	Title to Trust Property	 	 	7	 
	SECTION 2.08
	 	Situs of Trust	 	 	7	 
	SECTION 2.09
	 	Representations and Warranties of the Depositor	 	 	7	 
	SECTION 2.10
	 	Federal Income Tax Allocations	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE III
	CERTIFICATES AND TRANSFER OF INTERESTS
	 
	 	 	 	 	 	 
	SECTION 3.01
	 	The Certificates	 	 	9	 
	SECTION 3.02
	 	Authentication of Certificates	 	 	9	 
	SECTION 3.03
	 	Registration of Transfer and Exchange of Certificates	 	 	10	 
	SECTION 3.04
	 	Mutilated, Destroyed, Lost or Stolen Certificates	 	 	11	 
	SECTION 3.05
	 	Persons Deemed Certificateholders	 	 	11	 
	SECTION 3.06
	 	Access to List of Certificateholders’ Names and Addresses	 	 	11	 
	SECTION 3.07
	 	Maintenance of Office or Agency	 	 	12	 
	SECTION 3.08
	 	Appointment of Paying Agent	 	 	12	 
	SECTION 3.09
	 	Ownership by the Depositor of Certificates	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE IV
	ACTIONS BY OWNER TRUSTEE OR CERTIFICATEHOLDERS
	 
	 	 	 	 	 	 
	SECTION 4.01
	 	Prior Notice to Certificateholders with Respect to Certain Matters	 	 	13	 
	SECTION 4.02
	 	Action by Certificateholders with Respect to Certain Matters	 	 	14	 
	SECTION 4.03
	 	Action with Respect to Bankruptcy	 	 	14	 
	SECTION 4.04
	 	Restrictions on Certificateholders’ Power	 	 	14	 

(Nissan _____ Amended and

Restated Trust Agreement)

i

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 4.05
	 	Majority of the Certificates Control	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE V
	APPLICATION OF TRUST FUNDS; CERTAIN DUTIES
	 
	 	 	 	 	 	 
	SECTION 5.01
	 	Establishment of Accounts	 	 	15	 
	SECTION 5.02
	 	Application of Amounts in Trust Accounts	 	 	16	 
	SECTION 5.03
	 	Method of Payment	 	 	17	 
	SECTION 5.04
	 	Accounting and Reports to the Noteholders, Certificateholders, the Internal Revenue Service and Others	 	 	17	 
	SECTION 5.05
	 	Signature on Returns; Tax Matter Partner	 	 	18	 
	SECTION 5.06
	 	Duties of Depositor on Behalf of Trust	 	 	18	 
	 
	 	 	 	 	 	 
	ARTICLE VI
	AUTHORITY AND DUTIES OF OWNER TRUSTEE
	 
	 	 	 	 	 	 
	SECTION 6.01
	 	General Authority	 	 	18	 
	SECTION 6.02
	 	General Duties	 	 	18	 
	SECTION 6.03
	 	Duties of the Owner Trustee	 	 	19	 
	SECTION 6.04
	 	No Duties Except as Specified in this Agreement or in Instructions	 	 	20	 
	SECTION 6.05
	 	No Action Except Under Specified Documents or Instructions	 	 	21	 
	SECTION 6.06
	 	Restrictions	 	 	21	 
	 
	 	 	 	 	 	 
	ARTICLE VII
	CONCERNING THE OWNER TRUSTEE
	 
	 	 	 	 	 	 
	SECTION 7.01
	 	Rights of the Owner Trustee	 	 	21	 
	SECTION 7.02
	 	Furnishing of Documents	 	 	22	 
	SECTION 7.03
	 	Representations and Warranties	 	 	22	 
	SECTION 7.04
	 	Reliance; Advice of Counsel	 	 	23	 
	SECTION 7.05
	 	Not Acting in Individual Capacity	 	 	23	 
	SECTION 7.06
	 	Owner Trustee Not Liable for Certificates or Receivables	 	 	24	 
	SECTION 7.07
	 	Owner Trustee May Own Certificates and Notes	 	 	24	 
	SECTION 7.08
	 	Sales Finance Licenses	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE VIII
	 COMPENSATION OF OWNER TRUSTEE
	 
	 	 	 	 	 	 
	SECTION 8.01
	 	Owner Trustee’s Fees and Expenses	 	 	25	 
	SECTION 8.02
	 	Indemnification	 	 	25	 

(Nissan _____ Amended and

Restated Trust Agreement)

ii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	SECTION 8.03
	 	Payments to the Owner Trustee	 	 	25	 
	 
	 	 	 	 	 	 
	ARTICLE IX
	TERMINATION OF TRUST AGREEMENT
	 
	 	 	 	 	 	 
	SECTION 9.01
	 	Termination of Trust Agreement	 	 	26	 
	 
	 	 	 	 	 	 
	ARTICLE X
	SUCCESSOR OWNER TRUSTEES AND ADDITIONAL OWNER TRUSTEES
	 
	 	 	 	 	 	 
	SECTION 10.01
	 	Eligibility Requirements for Owner Trustee	 	 	27	 
	SECTION 10.02
	 	Resignation or Removal of Owner Trustee	 	 	27	 
	SECTION 10.03
	 	Successor Owner Trustee	 	 	28	 
	SECTION 10.04
	 	Merger or Consolidation of Owner Trustee	 	 	28	 
	SECTION 10.05
	 	Appointment of Co-Trustee or Separate Trustee	 	 	29	 
	 
	 	 	 	 	 	 
	ARTICLE XI
	 MISCELLANEOUS
	 
	 	 	 	 	 	 
	SECTION 11.01
	 	Supplements and Amendments	 	 	30	 
	SECTION 11.02
	 	No Legal Title to Owner Trust Estate in Certificateholders	 	 	31	 
	SECTION 11.03
	 	Limitations on Rights of Others	 	 	31	 
	SECTION 11.04
	 	Notices	 	 	31	 
	SECTION 11.05
	 	Severability	 	 	32	 
	SECTION 11.06
	 	Counterparts	 	 	32	 
	SECTION 11.07
	 	Successors and Assigns	 	 	32	 
	SECTION 11.08
	 	No Petition	 	 	32	 
	SECTION 11.09
	 	No Recourse	 	 	32	 
	SECTION 11.10
	 	Headings	 	 	32	 
	SECTION 11.11
	 	GOVERNING LAW	 	 	32	 
	SECTION 11.12
	 	NMAC Payment Obligation	 	 	33	 

(Nissan _____ Amended and

Restated Trust Agreement)

iii

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	Exhibit A
	 	Form of Certificate	 	 	 	 
	Exhibit B
	 	Form of Transferee Representation Letter	 	 	 	 
	Exhibit C
	 	Form of Transferor Representation Letter	 	 	 	 

(Nissan _____ Amended and

Restated Trust Agreement)

iv

 

          AMENDED AND RESTATED TRUST AGREEMENT, dated as of ___, 200_, between NISSAN AUTO
RECEIVABLES CORPORATION II, a Delaware corporation, as depositor, and WILMINGTON TRUST COMPANY, a
Delaware banking corporation, not in its individual capacity but solely as Owner Trustee, amending
and restating in its entirety the Trust Agreement, dated as of
                    , 200___ (the
“Original Trust Agreement”), between the same parties, and herein referred to as the “Trust
Agreement” or this “Agreement.”

          IN CONSIDERATION of the mutual agreements herein contained, and of other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as
follows: 

ARTICLE I

Definitions

     SECTION 1.01 Definitions. Except as otherwise specified herein or if the context may
otherwise require, capitalized terms used but not otherwise defined herein have the meanings
assigned to such terms in the Sale and Servicing Agreement and the Indenture for all purposes of
this Agreement. Except as otherwise provided in this Agreement, whenever used herein the following
words and phrases, unless the context otherwise requires, shall have the following meanings:

     “Administration Agreement” means the Administration Agreement dated as of ___,
200___ by and among the Trust, as issuer, NMAC, as Administrator, and the Indenture Trustee pursuant
to which NMAC undertakes to perform certain of the duties and obligations of the Trust hereunder,
under the Sale and Servicing Agreement and under the Indenture.

     “Administrator” means NMAC acting in its capacity as Administrator under the
Administration Agreement.

     “Agreement” means this Amended and Restated Trust Agreement, which amends and restates
the Original Trust Agreement.

     “Basic Documents” means the Purchase Agreement, this Agreement, the Certificate of
Trust, the Sale and Servicing Agreement, the Indenture, the Yield Supplement Agreement, the
Administration Agreement, the Note Depository Agreement, the Securities Account Control Agreement[,
the Interest Rate Swap Agreement] and the other documents and certificates delivered in connection
herewith and therewith.

     “Benefit Plan Investor” means an “employee benefit plan” as defined in Section 3(3) of
ERISA, which is subject to the provisions of Title I of ERISA, a “plan” described in Section
4975(e)(1) of the Code, or an entity whose underlying assets include “plan assets” by reason of an
employee benefit plan’s or plan’s investment in the entity, or any other employee benefit plan that
is subject to a law that is similar to Title I of ERISA or Section 4975 of the Code.

(Nissan _____ Amended and

Restated Trust Agreement)

1

 

     “Certificate” means any of the Certificates executed by the Trust and authenticated by
the Owner Trustee, evidencing a beneficial ownership interest in the Trust, substantially in the
form set forth in Exhibit A hereto.

     “Certificate of Trust” means the Certificate of Trust filed with respect to the
formation of the Trust pursuant to Section 3810(a) of the Statutory Trust Act.

     “Certificate Register” means the register maintained pursuant to Section 3.03.

     “Certificate Registrar” means Wilmington Trust Company, unless and until a successor
thereto is appointed pursuant to Section 3.03. The Certificate Registrar initially designates its
offices at Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890, as its
offices for purposes of Section 3.03.

     “Certificateholder” or “Holder” means a Person in whose name a Certificate is
registered in the Certificate Register, except that, solely for the purposes of giving certain
consents, waivers, requests or demands pursuant to this Agreement, the interest evidenced by any
Certificate registered in the name of NARC II or NMAC, or any Person actually known to a Trust
Officer of the Owner Trustee to be controlling, controlled by or under common control with NARC II
or NMAC, shall not be taken into account in determining whether the requisite percentage necessary
to effect any such consent, waiver, request or demand shall have been obtained unless at such time
all Certificates are then owned by NARC II, NMAC and their Affiliates.

     “Code” means the Internal Revenue Code of 1986, as amended.

     “Corporate Trust Office” means, with respect to the Owner Trustee, the principal
corporate trust office of the Owner Trustee located at Rodney Square North, 1100 North Market
Street, Wilmington, Delaware 19890; or at such other address as the Owner Trustee may designate by
notice to the Certificateholders, or the principal corporate trust office of any successor Owner
Trustee (the address of which the successor Owner Trustee will notify the Certificateholders).

     “Currency Swap Agreement” shall mean any currency swap agreement, including all
schedules and confirmations thereto, entered into by the Issuer and the Currency Swap Counterparty,
as the same may be amended, supplemented, renewed, extended or replaced from time to time.

     “Currency Swap Counterparty” shall mean an unaffiliated third party, as currency swap
counterparty, under the Currency Swap Agreement, or any successor or replacement Currency Swap
Counterparty from time to time.

     “Depositor” means NARC II in its capacity as depositor hereunder.

(Nissan _____ Amended and

Restated Trust Agreement)

2

 

     “Depositor’s Formation Documents” means the Amended and Restated Certificate of
Incorporation of Nissan Auto Receivables Corporation II, dated as of January 10, 2001 and the
by-laws of NARC II.

     “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     “Expenses” shall have the meaning assigned to such term in Section 8.01.

     “Indenture”
means the Indenture dated as of ___, 200___ entered into between the
Trust and the Indenture Trustee named therein pursuant to which a series of Notes are issued.

     “Independent Director” means an individual who was not at any time during the
preceding five years (i) a director, officer, employee or affiliate of NARC II (other than any
limited purpose or special purpose corporation or limited liability company similar to NARC II),
(ii) a person related to any officer or director of any affiliate of NARC II (other than any
limited purpose or special purpose corporation or limited liability company similar to NARC II),
(iii) a direct or indirect holder of one or more than 5% of any voting securities of any affiliate
of NARC II, (iv) a material creditor, material supplier, employee, officer, director, family
member, manager, or contractor of NARC II, or (v) a person who controls (whether directly,
indirectly, or otherwise) NARC II or its affiliates or any material creditor, material supplier,
employee, officer, director, manager or material contractor of NARC II or its affiliates.

     [Interest Rate Swap Agreement” means the ISDA Master Agreement, dated as of
                    , 200_, between the Swap Counterparty and the Trust, the Schedule and the Credit
Support Annex thereto, dated as of
                    , 200___ and the Confirmations thereto, each dated
as of                     , 200_, and entered into pursuant to such ISDA Master Agreement, as the same
may be amended, supplemented, renewed, extended or replaced from time to time in accordance with
the terms thereof.]

     “NMAC” means Nissan Motor Acceptance Corporation, a California corporation.

     “NARC II” means Nissan Auto Receivables Corporation II, a Delaware corporation.

     “Non-U.S. Person” means any Person who is not (i) a citizen or resident of the United
States who is a natural person, (ii) a corporation or partnership (or an entity treated as a
corporation or partnership) created or organized in or under the laws of the United States or any
state thereof, including the District of Columbia (unless, in the case of a partnership, Treasury
Regulations are adopted that provide otherwise), (iii) an estate, the income of which is subject to
United States Federal income taxation, regardless of its source, (iv) a trust, if a court within
the United States is able to exercise primary supervision over the administration of the trust and
one or more United States persons (as defined in the Code and Treasury Regulations) have the
authority to control all substantial decisions of the trust; or (v) a trust that was in existence
prior to August 20, 1996 and that, under Treasury Regulations, is eligible to elect, and does
validly elect, to be treated as a United States person (as defined in the Code and Treasury
Regulations) despite not meeting the requirements of clause (iv).

(Nissan _____ Amended and

Restated Trust Agreement)

3

 

     “Notes” means the notes issued by the Trust pursuant to the Indenture, having the
payment and other terms set forth in the Indenture.

     “Original
Certificate Balance” means $                    .

     “Original Trust Agreement” shall have the meaning assigned to such term in the
introductory paragraph to this Agreement.

     “Owner Trust Estate” means all right, title and interest of the Trust in and to the
property and rights assigned to the Trust pursuant to Article II of the Sale and Servicing
Agreement, all funds on deposit from time to time in the accounts created pursuant to Sections 5.01
and 5.08 of the Sale and Servicing Agreement (excluding any net investment income with respect to
amounts held in such accounts)[, the proceeds of the Interest Rate Swap Agreement] and all other
property of the Trust from time to time including any rights of the Owner Trustee and the Trust
pursuant to the Sale and Servicing Agreement, the Yield Supplement Agreement, [and] the
Administration Agreement[, and the Interest Rate Swap Agreement] and as assignee of the rights and
interests of the Depositor under the Purchase Agreement.

     “Owner Trustee” means Wilmington Trust Company, a Delaware banking corporation, not in
its individual capacity but solely as owner trustee under this Agreement, and any successor Owner
Trustee hereunder.

     “Paying Agent” means any paying agent or co-paying agent appointed pursuant to Section
3.08, and shall initially be Wilmington Trust Company.

     “Plan” shall have the meaning assigned to such term in Section 3.03(c)(1)(ii).

     “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of the
date hereof, among the Trust, NARC II, as seller, and NMAC, as servicer.

     “Secretary of State” means the Secretary of State of the State of Delaware.

     “Securities Account Control Agreement” shall have the meaning assigned to such term in
the Sale and Servicing Agreement.

     “Securityholders” means the Certificateholders and the Noteholders.

     “Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code
§ 3801 et seq.

     [“Swap Counterparty” means an unaffiliated third party, as swap counterparty, under
the Interest Rate Swap Agreement, or any successor or replacement Swap Counterparty from time to
time.]

     “Treasury Regulations” means regulations, including proposed or temporary regulations,
promulgated under the Code. References herein to specific provisions of proposed or temporary

(Nissan _____ Amended and

Restated Trust Agreement)

4

 

regulations shall include analogous provisions of final Treasury Regulations or other
successor Treasury Regulations.

     “Trust”
means the Nissan Auto Receivables ___ Owner Trust, formed as a Delaware
statutory trust pursuant to this Agreement and the filing of the Certificate of Trust.

     “Trust Collection Account” shall have the meaning assigned to such term in Section
5.01(a).

     “Yield Supplement Agreement” means the Yield Supplement Agreement dated as of the date
hereof among NMAC, the Depositor, the Indenture Trustee and the Trust.

     SECTION 1.02 Usage of Terms. With respect to all terms in this Agreement, the singular
includes the plural and the plural the singular; words importing any gender include the other
genders; references to “writing” include printing, typing, lithography and other means of
reproducing words in a visible form; references to agreements and other contractual instruments
include all subsequent amendments, amendments and restatements and supplements thereto or changes
therein entered into in accordance with their respective terms and not prohibited by this
Agreement; references to Persons include their permitted successors and assigns; references to laws
include their amendments and supplements, the rules and regulations thereunder and any successors
thereto; and the term “including” means “including without limitation.”

ARTICLE II

Creation of Trust

     SECTION 2.01 Creation of Trust. A Delaware statutory trust known as “Nissan Auto
Receivables ___ Owner Trust” was formed in accordance with the provisions of the Statutory Trust
Act pursuant to the Original Trust Agreement. Under the Original Trust Agreement, the Owner
Trustee was authorized and vested with the power and authority to make and execute contracts,
instruments, certificates, agreements and other writings on behalf of the Trust as set forth herein
and to sue and be sued on behalf of the Trust.

     The Owner Trustee accepted under the Original Trust Agreement, and does hereby confirm its
acceptance and agreement to hold in trust, for the benefit of the Certificateholders and such other
Persons as may become beneficiaries hereunder from time to time, all of the Owner Trust Estate
conveyed or to be conveyed to the Trust, and all monies and proceeds that may be received with
respect thereto, subject to the terms of this Agreement.

     SECTION 2.02 Office. The principal place of business of the Trust for purposes of
Delaware law shall be in care of the Owner Trustee at the Corporate Trust Office or at such other
address in Delaware as the Owner Trustee may designate by written notice to the Certificateholders
and the Servicer. The Trust may establish additional offices located at such place or places
inside or outside of the State of Delaware as the Owner Trustee may designate by written notice to
the Certificateholders and the Servicer.

(Nissan _____ Amended and

Restated Trust Agreement)

5

 

     SECTION 2.03 Purposes and Powers.

     (a) The purpose of the Trust is, and the Trust shall have the power and authority and is
authorized, to engage in the following activities:

     (i) to issue Notes pursuant to the Indenture and Certificates pursuant to this
Agreement;

     (ii) to enter into and perform its obligations under any currency exchange rate
protection agreement between the Trust and a counterparty, including any confirmations
evidencing the transactions thereunder, using only the funds payable to the
Certificateholders as provided in Section 5.02(d);

     (iii) [to enter into and perform its obligations under any interest rate protection
agreement or agreements relating to the Notes between the Issuer and one or more
counterparties, including any confirmations, evidencing the transactions thereunder, each of
which is an interest rate swap, an interest rate cap, an obligation to enter into any of the
foregoing or any combination of any of the foregoing (including the Interest Rate Swap
Agreement);]

     (iv) to acquire the Owner Trust Estate (including the Receivables and related property)
from the Depositor in exchange for the Notes and Certificates pursuant to the Sale and
Servicing Agreement;

     (v) to assign, grant, transfer, pledge, mortgage and convey the Owner Trust Estate
pursuant to, and on the terms and conditions set forth in, the Indenture and to hold, manage
and distribute to the Certificateholders pursuant to the terms of the Sale and Servicing
Agreement any portion of the Owner Trust Estate released from the Lien of, and remitted to
the Trust pursuant to, the Indenture as set forth therein and in the Sale and Servicing
Agreement;

     (vi) to enter into and perform its obligations under the Basic Documents to which it is
to be a party;

     (vii) to engage in those activities, including entering into agreements, that are
necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or
connected therewith; and

     (viii) subject to compliance with the Basic Documents, to engage in such other
activities as may be required in connection with conservation of the Owner Trust Estate and
the making of distributions to the [Swap Counterparty, the] Certificateholders and the
Noteholders and in respect of amounts to be released to the Depositor, the Servicer, the
Administrator and third parties, if any.

     The Trust shall not engage in any activity other than in connection with the foregoing and as
required or authorized by the terms of the Basic Documents.

(Nissan _____ Amended and

Restated Trust Agreement)

6

 

     SECTION 2.04 Power of Attorney. Pursuant to the Administration Agreement, the Owner
Trustee has authorized the Administrator to perform certain of its administrative duties hereunder,
including duties with respect to the management of the Owner Trust Estate, and in connection
therewith hereby grants the Administrator its revocable power of attorney. Each Certificateholder
by such Holder’s acceptance of any Certificate or beneficial interest therein, as the case may be,
shall be deemed to have granted power of attorney to the Administrator for purposes of actions
taken or to be taken with respect to the Certificates.

     SECTION 2.05 Declaration of Trust. The Owner Trustee hereby declares that it will
hold the Owner Trust Estate, and in the event the Issuer enters into a Currency Swap Agreement
pursuant to Section 5.11 of the Sale and Servicing Agreement, any such Currency Swap Agreement and
payments made by any such Currency Swap Counterparty, in trust upon and subject to the conditions
set forth herein for the use and benefit of the Certificateholders, subject to the obligations of
the Trust under the Basic Documents. It is the intention of the parties hereto that the Trust
constitute a statutory trust under the Statutory Trust Act and that this Agreement constitute the
governing instrument of such statutory trust. It is the intention of the parties hereto that,
solely for income and franchise tax purposes, the Trust shall be treated as a division or branch of
the Person holding the beneficial ownership interests in the Trust for any period during which the
beneficial ownership interests in the Trust are held by one Person, and that it shall be treated as
a partnership for any period during which the beneficial ownership interests in the Trust are held
by more than one Person, with the assets of the partnership being the Receivables and other assets
held by the Trust, and the Notes being debt of the partnership. The parties agree that for any
such period, unless otherwise required by appropriate tax authorities, the Trust will file or cause
to be filed annual or other necessary returns, reports and other forms consistent with such
characterization of the Trust for tax purposes. Effective as of the date hereof, the Owner Trustee
shall have all rights, powers and duties set forth herein and in the Statutory Trust Act with
respect to accomplishing the purposes of the Trust. At the direction of the Depositor, the Owner
Trustee caused to be filed the Certificate of Trust pursuant to the Statutory Trust Act, and the
Owner Trustee shall file or cause to be filed such amendments thereto as shall be necessary or
appropriate to satisfy the purposes of this Agreement and as shall be consistent with the
provisions hereof.

     SECTION 2.06 Liability of the Certificateholders. No Certificateholder shall have any
personal liability for any liability or obligation of the Trust, solely by reason of it being a
Certificateholder.

     SECTION 2.07 Title to Trust Property. Legal title to all of the Owner Trust Estate
shall be vested at all times in the Trust as a separate legal entity.

     SECTION 2.08 Situs of Trust. The Trust will be located in Delaware and administered
in the states of Delaware, New York or Minnesota. All bank accounts maintained by the Owner
Trustee on behalf of the Trust shall be located in the State of Delaware or the State of New York.
The Trust shall not have any employees in any state other than Delaware; provided,
however, that nothing herein shall restrict or prohibit the Owner Trustee from having
employees within or without the State of Delaware. Payments will be received by the Trust only in
Delaware or New

(Nissan _____ Amended and

Restated Trust Agreement)

7

 

York, and payments will be made by the Trust only from Delaware or New York. The principal
office of the Trust will be at the Corporate Trust Office in Delaware.

     SECTION 2.09 Representations and Warranties of the Depositor. The Depositor hereby
represents and warrants to the Owner Trustee that as of the Closing Date:

     (a) Organization and Good Standing. The Depositor has been duly organized and is
validly existing as a corporation in good standing under the laws of the State of Delaware, with
corporate power and authority to own its properties and to conduct its business as such properties
are currently owned and such business is presently conducted, and had at all relevant times, and
has, corporate power, authority and legal right to acquire and own the Receivables.

     (b) Due Qualification. The Depositor is duly qualified to do business as a foreign
corporation in good standing, and has obtained all necessary licenses and approvals in all
jurisdictions in which the ownership or lease of property or the conduct of its business shall
require such qualifications, and where the failure to so qualify would have a material adverse
effect on the ability of the Depositor to perform its obligations under this Agreement.

     (c) Power and Authority. The Depositor has the corporate power and authority to
execute and deliver this Agreement and to carry out its terms. The Depositor has full power and
authority to sell and assign the property to be sold and assigned to and deposited as part of the
Owner Trust Estate and has duly authorized such sale and assignment to the Trust by all necessary
corporate action; and the execution, delivery and performance of this Agreement has been duly
authorized by the Depositor by all necessary corporate action.

     (d) Binding Obligations. This Agreement is a legal, valid and binding obligation of
the Depositor enforceable in accordance with its terms, subject to the effect of bankruptcy,
insolvency, reorganization, moratorium or other similar laws affecting creditors’ rights generally
and by general equitable principles.

     (e) No Violation. The consummation of the transactions contemplated by this Agreement
and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the
terms and provisions of, nor constitute (with or without notice or lapse of time) a default under,
the certificate of incorporation or by-laws of the Depositor, or any indenture, agreement or other
instrument to which the Depositor is a party or by which it shall be bound; nor result in the
creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than the Basic Documents); nor violate any law or,
to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor
of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Depositor or its properties; which
breach, default, conflict, Lien or violation in any case would have a material adverse effect on
the ability of the Depositor to perform its obligations under this Agreement.

     (f) No Proceedings. There are no proceedings or investigations pending, or, to the
best of the Depositor’s knowledge, threatened, before any court, regulatory body, administrative
agency or other governmental instrumentality having jurisdiction over the Depositor or its

(Nissan _____ Amended and

Restated Trust Agreement)

8

 

properties: (i) asserting the invalidity of this Agreement; (ii) seeking to prevent the
consummation of any of the transactions contemplated by this Agreement; (iii) seeking any
determination or ruling that would materially and adversely affect the performance by the Depositor
of its obligations under, or the validity or enforceability of, this Agreement; or (iv) relating to
the Depositor and that would adversely affect the federal or any state income tax attributes of the
Trust, the Certificates or the Notes.

     (g) Independent Director. Notwithstanding anything to the contrary in the Depositor’s
Formation Documents, the Depositor shall ensure that at least one director of the Depositor shall
be an Independent Director.

     SECTION 2.10 Federal Income Tax Allocations. Net income of the Trust for any month as
determined for federal income tax purposes (and each item of income, gain, loss and deduction
entering into the computation thereof) during which the beneficial ownership interests in the Trust
are held by more than one Person shall be allocated:

     (a) in an amount equal to any amount distributed to the Certificateholders pursuant to the
Sale and Servicing Agreement (to the extent not previously allocated pursuant to this clause); and

     (b) to the Depositor, to the extent of any remaining net income.

     If the net income of the Trust for any month is insufficient for the allocations described in
clause (a) above, subsequent net income shall first be allocated to make up such shortfall before
being allocated as provided in the preceding sentence. Net losses of the Trust, if any, for any
month as determined for federal income tax purposes (and each item of income, gain, loss and
deduction entering into the computation thereof) shall be allocated to the Depositor to the extent
the Depositor has agreed hereunder and under the Sale and Servicing Agreement and the Indenture to
bear the economic burden of such net losses, and any remaining net losses shall be allocated among
the Certificateholders as of the first Distribution Date following the end of such month in
proportion to their ownership of principal amount of Certificates as of the close of business on
such Distribution Date. The Depositor is authorized to modify the allocations in this paragraph if
necessary or appropriate, in its sole discretion, for the allocations to fairly reflect the
economic income, gain or loss to the Depositor or to the Certificateholders, or as otherwise
required by the Code.

ARTICLE III

Certificates and Transfer of Interests

     SECTION 3.01 The Certificates. The Certificates shall be issued in minimum
denominations of $25,000.00 and in integral multiples of $1,000.00 in excess thereof. The
Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Trust
Officer of the Owner Trustee and authenticated on behalf of the Owner Trustee by the manual or
facsimile signature of a Trust Officer. Certificates bearing the manual or facsimile signatures of
individuals who were, at the time when such signatures shall have been affixed, authorized to

(Nissan _____ Amended and

Restated Trust Agreement)

9

 

sign on behalf of the Trust, shall be validly issued and entitled to the benefits of this
Agreement, notwithstanding that such individuals or any of them shall have ceased to be so
authorized prior to the authentication and delivery of such Certificates or did not hold such
offices at the date of authentication and delivery of such Certificates.

     The Certificates may be printed, lithographed, typewritten, mimeographed or otherwise
produced, in any authorized denomination in the form of Exhibit A hereto.

     A transferee of a Certificate shall become a Certificateholder, and shall be entitled to the
rights and subject to the obligations of a Certificateholder hereunder, upon such transferee’s
acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 3.03.

     SECTION 3.02 Authentication of Certificates. Concurrently with the initial transfer
of the Receivables to the Trust pursuant to the Sale and Servicing Agreement, the Owner Trustee
shall cause to be executed, authenticated and delivered on behalf of the Trust to the Depositor,
Certificates in an aggregate principal amount equal to the Original Certificate Balance and
evidencing the entire ownership of the Trust. No Certificate shall entitle its holder to any
benefit under this Agreement or be valid for any purpose, unless there shall appear on such
Certificate a certificate of authentication substantially in the form set forth in Exhibit
A, executed by the Owner Trustee or the Owner Trustee’s authenticating agent, by manual or
facsimile signature of a Trust Officer, and such authentication shall constitute conclusive
evidence, and the only evidence, that such Certificate shall have been duly authenticated and
delivered hereunder. All Certificates shall be dated the date of their authentication. The
Wilmington Trust Company shall be the initial authenticating agent of the Owner Trustee hereunder,
and all references herein to authentication by the Owner Trustee shall be deemed to include the
authenticating agent.

     SECTION 3.03 Registration of Transfer and Exchange of Certificates.

     (a) The Certificate Registrar shall keep or cause to be kept, at the office or agency
maintained pursuant to Section 3.07, a Certificate Register in which, subject to such reasonable
regulations as it may prescribe, Wilmington Trust Company shall provide for the registration of
Certificates and of transfers and exchanges of Certificates as herein provided. Wilmington Trust
Company shall be the initial Certificate Registrar. In the event that the Certificate Registrar
shall for any reason become unable to act as Certificate Registrar, the Certificate Registrar shall
promptly give written notice to such effect to the Depositor, the Owner Trustee and the Servicer.
Upon receipt of such notice, the Servicer shall appoint another bank or trust company, which shall
agree to act in accordance with the provisions of this Agreement applicable to it, and otherwise
acceptable to the Owner Trustee, to act as successor Certificate Registrar under this Agreement.

     (b) Upon surrender for registration of transfer of any Certificate at the office or agency
maintained pursuant to Section 3.07, the Owner Trustee shall execute, authenticate and deliver (or
shall cause its authenticating agent to authenticate and deliver), in the name of the designated
transferee or transferees, one or more new Certificates in authorized denominations of a like
aggregate amount dated the date of authentication by the Owner Trustee or any authenticating agent.
At the option of a Holder, Certificates may be exchanged for other

(Nissan _____ Amended and

Restated Trust Agreement)

10

 

Certificates of authorized denominations of a like aggregate amount upon surrender of the
Certificates to be exchanged at the office or agency maintained pursuant to Section 3.07. The
preceding provisions of this Section notwithstanding, the Owner Trustee shall not make and the
Certificate Registrar shall not register transfer or exchanges of Certificates for a period of 15
days preceding the due date for any payment with respect to the Certificates.

     (c) Every Certificate presented or surrendered for registration of transfer or exchange shall
be accompanied by a written instrument of transfer in form satisfactory to the Owner Trustee and
the Certificate Registrar duly executed by the Holder or his attorney duly authorized in writing.
Each Certificate surrendered for registration of transfer or exchange shall be cancelled and
disposed of by the Owner Trustee in accordance with its customary practice.

     No transfer of a Certificate shall be made unless the Owner Trustee shall have received:

     (1) a representation from the transferee of such Certificate substantially in the form of
Exhibit B to the effect that:

          (i) such transferee is not a Non-U.S. Person; and

          (ii) such transferee is not a Benefit Plan;

     (2) a representation from the transferor of such Certificate substantially in the form of
Exhibit C; and

     (3) an opinion of counsel to the Owner Trustee that the transfer of such Certificate is being
made pursuant to an effective registration under the Securities Act or is exempt from the
registration requirements of the Securities Act.

     Notwithstanding anything else to the contrary herein, any purported transfer of a Certificate
to or on behalf of a Benefit Plan or utilizing the assets of a Benefit Plan shall be void and of no
effect.

     To the extent permitted under applicable law (including, but not limited to, ERISA), the Owner
Trustee shall be under no liability to any Person for any registration of transfer of any
Certificate that is in fact not permitted by this Section 3.03(c) or for making any payments due on
such Certificate to the Certificateholder thereof or taking any other action with respect to such
Holder under the provisions of this Trust Agreement or the Sale and Servicing Agreement so long as
the transfer was registered by the Certificate Registrar or the Owner Trustee in accordance with
the foregoing requirements.

     (d) No service charge shall be made for any registration of transfer or exchange of
Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum
sufficient to cover any tax or governmental charge that may be imposed in connection with any
transfer or exchange of Certificates.

     SECTION 3.04 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated
Certificate shall be surrendered to the Certificate Registrar, or if the Certificate Registrar
shall

(Nissan _____ Amended and

Restated Trust Agreement)

11

 

receive evidence to its satisfaction of the destruction, loss or theft of any Certificate and
(b) there shall be delivered to the Certificate Registrar and the Owner Trustee such security or
indemnity as may be required by them to save each of them harmless, then in the absence of notice
that such Certificate shall have been acquired by a protected purchaser, the Owner Trustee on
behalf of the Trust shall execute and the Owner Trustee, or the Owner Trustee’s authenticating
agent, shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed,
lost or stolen Certificate, a new Certificate of like tenor and denomination. In connection with
the issuance of any new Certificate under this Section, the Owner Trustee or the Certificate
Registrar may require the payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection therewith. Any duplicate Certificate issued pursuant to this
Section shall constitute conclusive evidence of ownership in the Trust, as if originally issued,
whether or not the lost, stolen or destroyed Certificate shall be found at any time.

     SECTION 3.05 Persons Deemed Certificateholders. Prior to due presentation of a
Certificate for registration of transfer, the Owner Trustee or the Certificate Registrar may treat
the Person in whose name any Certificate shall be registered in the Certificate Register as the
owner of such Certificate for the purpose of receiving distributions pursuant to Section 5.02 and
for all other purposes whatsoever, and neither the Owner Trustee nor the Certificate Registrar
shall be bound by any notice to the contrary.

     SECTION 3.06 Access to List of Certificateholders’ Names and Addresses. The
Certificate Registrar shall furnish or cause to be furnished to the Owner Trustee, the Servicer or
the Depositor, as the case may be, within 15 days after its receipt of a request therefor from the
Owner Trustee, the Servicer or the Depositor in writing, a list, in such form as the Owner Trustee,
the Servicer or the Depositor may reasonably require, of the names and addresses of the
Certificateholders as of the most recent Record Date. If three or more Certificateholders or one
or more Holders of Certificates evidencing, in the aggregate, not less than 25% of the Certificate
Balance apply in writing to the Owner Trustee, and such application states that the applicants
desire to communicate with other Certificateholders with respect to their rights under this
Agreement or under the Certificates and such application is accompanied by a copy of the
communication that such applicants propose to transmit, then the Owner Trustee shall, within five
Business Days after the receipt of such application, afford such applicants access during normal
business hours to the current list of Certificateholders. Each Holder, by receiving and holding a
Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Servicer, the
Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its name and
address, regardless of the source from which such information was derived.

     SECTION 3.07 Maintenance of Office or Agency. The Owner Trustee shall maintain an
office or offices or agency or agencies where Certificates may be surrendered for registration of
transfer or exchange and where notices and demands to or upon the Owner Trustee in respect of the
Certificates and the Basic Documents may be served. The Owner Trustee initially designates
Wilmington Trust Company, in such capacity, Rodney Square North, 1100 North Market Street,
Wilmington, Delaware 19890, as its principal corporate trust office for such purposes. The Owner
Trustee shall give prompt written notice to the Depositor and to the Certificateholders of any
change in the location of the Certificate Register or any such office or agency.

(Nissan _____ Amended and

Restated Trust Agreement)

12

 

     SECTION 3.08 Appointment of Paying Agent. Except during any period when the Indenture
Trustee is authorized and directed to do so under the Indenture (i.e. prior to the termination of
the Indenture), the Paying Agent shall make distributions to Certificateholders from the Collection
Account pursuant to Section 5.02 and shall report the amounts of such distributions to the Owner
Trustee. Any Paying Agent shall have the revocable power to withdraw funds from the Collection
Account for the purpose of making the distributions referred to above. The Owner Trustee may
revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole
discretion that the Paying Agent shall have failed to perform its obligations under this Agreement
in any material respect. The Paying Agent shall initially be Wilmington Trust Company, and any
co-paying agent chosen by the Owner Trustee, and acceptable to the Owner Trustee. The Paying Agent
shall be permitted to resign as Paying Agent upon 30 days’ written notice to the Indenture Trustee
and, if the Paying Agent is not the Owner Trustee, to the Owner Trustee. In the event that
Wilmington Trust Company shall no longer be the Paying Agent, the Owner Trustee shall appoint a
successor to act as Paying Agent (which shall be a bank or trust company). The Owner Trustee shall
cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to
execute and deliver to the Owner Trustee an instrument in which such successor Paying Agent or
additional Paying Agent shall agree with the Owner Trustee that as Paying Agent, such successor
Paying Agent or additional Paying Agent will hold all sums, if any, held by it for payment to the
Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such
sums shall be paid to such Certificateholders. The Paying Agent shall return all unclaimed funds
to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all
funds in its possession to the Owner Trustee. The provisions of Sections 7.01, 7.03, 7.04, 8.01
and 8.02 shall apply to the Owner Trustee also in its role as Paying Agent, for so long as the
Owner Trustee shall act as Paying Agent and, to the extent applicable, to any other Paying Agent
appointed hereunder. Any reference in this Agreement to the Paying Agent shall include any
co-paying agent unless the context requires otherwise.

     SECTION 3.09 Ownership by the Depositor of Certificates. Notwithstanding Section
3.03, the Depositor shall on the Closing Date receive in accordance with Section 3.02, and shall
thereafter retain beneficial and record ownership of, Certificates representing 100% of the
Certificate Balance. Any attempted transfer of any Certificate that would reduce such interest of
the Depositor below 100% of the Certificate Balance shall be void. The Owner Trustee shall cause
one Certificate issued to the Depositor (representing 100% of the Certificate Balance) to bear a
legend stating “THIS CERTIFICATE IS NON-TRANSFERABLE.”

ARTICLE IV

Actions By Owner Trustee or Certificateholders

     SECTION 4.01 Prior Notice to Certificateholders with Respect to Certain Matters. With
respect to the following matters, the Owner Trustee shall not take action unless at least 30 days
before the taking of such action (or such shorter period as shall be agreed to in writing by all
Certificateholders), the Owner Trustee shall have notified the Certificateholders in writing of the
proposed action and none of the Certificateholders shall have notified the Owner Trustee in

(Nissan _____ Amended and

Restated Trust Agreement)

13

 

writing prior to the 30th day (or such agreed upon shorter period) after such notice is given
that such Certificateholders have withheld consent or provided alternative direction:

     (a) the initiation of any claim or lawsuit by the Trust (except claims or lawsuits brought in
connection with the collection of the Receivables) and the compromise of any action, claim or
lawsuit brought by or against the Trust (except with respect to the aforementioned claims or
lawsuits for collection of the Receivables);

     (b) the election by the Trust to file an amendment to the Certificate of Trust (unless such
amendment is required to be filed under the Statutory Trust Act);

     (c) the amendment of the Indenture, whether or not by a Supplemental Indenture, in
circumstances where the consent of any Noteholder [or the Swap Counterparty] is required;

     (d) the amendment of the Indenture, whether or not by a Supplemental Indenture, in
circumstances where the consent of any Noteholder [or the Swap Counterparty] is not required but
such amendment materially adversely affects the interest of the Certificateholders;

     (e) the amendment, change or modification of the Administration Agreement, other than to cure
any ambiguity or to amend or supplement any provision in a manner or add any provision that would
not materially adversely affect the interests of the Certificateholders;

     (f) the appointment (i) pursuant to the Indenture of a successor Note Registrar or Paying
Agent, (ii) pursuant to this Agreement of a successor Certificate Registrar or (iii) any consent by
the Note Registrar, Paying Agent or Indenture Trustee or Certificate Registrar to the assignment of
its respective obligations under the Indenture or this Agreement, as applicable; or

     (g) the amendment of the Sale and Servicing Agreement in circumstances where the consent of
any Noteholder [or the Swap Counterparty] is required.

     SECTION 4.02 Action by Certificateholders with Respect to Certain Matters. The Owner
Trustee shall not have the power, except upon the direction of the Certificateholders, to (a)
remove the Administrator pursuant to Section 8 of the Administration Agreement, (b) appoint a
successor Administrator pursuant to Section 8 of the Administration Agreement, (c) remove the
Servicer pursuant to Section 8.01 of the Sale and Servicing Agreement or (d) except as expressly
provided in the Basic Documents, sell the Receivables after the termination of the Indenture. The
Owner Trustee shall take the actions referred to in the preceding sentence only upon written
instructions signed by the authorized representative of 100% of the Certificateholders.

     SECTION 4.03 Action with Respect to Bankruptcy. The Owner Trustee shall not have the
power to commence a voluntary proceeding in bankruptcy relating to the Trust without the unanimous
prior approval of all Certificateholders (including the Board of Directors (including the
Independent Directors, as such term is defined in the Depositor’s Certificate of Incorporation) of
the Depositor) and the delivery to the Owner Trustee of a written certification by each
Certificateholder that such Certificateholder reasonably believes that the Trust is insolvent.

(Nissan _____ Amended and

Restated Trust Agreement)

14

 

     SECTION 4.04 Restrictions on Certificateholders’ Power. The Certificateholders shall
not direct the Owner Trustee to take or refrain from taking any action if such action or inaction
would be contrary to any obligations of the Trust or of the Owner Trustee under any of the Basic
Documents or would be contrary to Section 2.03 nor shall the Owner Trustee be obligated to follow
any such direction, if given.

     SECTION 4.05 Majority of the Certificates Control. Except as otherwise expressly
provided herein, any action that may be taken by the Certificateholders under this Agreement may be
taken by the Holders of the Certificates evidencing not less than a majority of the Certificate
Balance. Except as expressly provided herein, any written notice of the Certificateholders
delivered pursuant to this Agreement shall be effective if signed by Holders of the Certificates
evidencing not less than a majority of the Certificate Balance at the time of the delivery of such
notice.

ARTICLE V

Application of Trust Funds; Certain Duties

     SECTION 5.01 Establishment of Accounts.

     (a) On or prior to the Distribution Date on which the Notes of all Classes have been paid in
full (or substantially all of the Trust Estate is otherwise released from the lien of the
Indenture), the Owner Trustee, for the benefit of the Certificateholders, shall establish and
maintain, or shall cause to be established and maintained, in the name of the Trust (or in such
other name as shall be specified in the Sale and Servicing Agreement), the trust collection account
(the “Trust Collection Account”). The Trust Collection Account shall be established and maintained
as an Eligible Deposit Account, and, subject to provisions of the Sale and Servicing Agreement,
bearing a designation clearly indicating that, subject to Section 5.01(b), the funds deposited
therein are held by the Trust for the benefit of the Certificateholders, in each case in accordance
with Section 5.01 of the Sale and Servicing Agreement.

     Subject to Section 5.01(b), the Owner Trustee shall possess all right, title and interest in
all funds on deposit from time to time in the Trust Collection Account and in all proceeds thereof
(other than any net investment earnings on Eligible Investments held therein). Except as otherwise
expressly provided herein, the Trust Collection Account shall be under the sole dominion and
control of the Owner Trustee for the benefit of the Certificateholders. If, at any time, the Trust
Collection Account ceases to be an Eligible Deposit Account, the Owner Trustee (or the
Administrator on behalf of the Owner Trustee, if the Trust Collection Account is not then held by
the Owner Trustee or an affiliate thereof) shall within 10 Business Days establish a new equivalent
Eligible Deposit Account and shall transfer any cash and/or any investments to such new account.

     (b) Concurrently with the execution and delivery of the Indenture, the Servicer will establish
and maintain, or shall cause to be established and maintained, at the direction of the Depositor,
the Collection Account in the name of and under the control of the Indenture Trustee for the
benefit of the Securityholders in accordance with Section 5.01 of the Sale and Servicing

(Nissan _____ Amended and

Restated Trust Agreement)

15

 

Agreement. The Indenture Trustee will be obligated to transfer back to the Owner Trustee, for
the benefit of the Certificateholders, all funds or investments held in the Collection Account on
the Distribution Date on which the Notes of all Classes have been paid in full or the Indenture is
otherwise terminated (excluding any amounts to be retained for distribution in respect of Notes
that are not promptly delivered for payment on such Distribution Date), and to take all necessary
or appropriate actions to transfer all right, title and interest of the Indenture Trustee in such
funds or investments and all proceeds thereof to the Owner Trustee for the benefit of the
Certificateholders, which amounts the Owner Trustee shall deposit into the Trust Collection
Account.

     (c) Concurrently with the execution and delivery of the Indenture, the Owner Trustee shall
establish and maintain the Yield Supplement Account in the name of and under the control of the
Indenture Trustee for the benefit of the Noteholders in accordance with paragraph 2 of the Yield
Supplement Agreement, Section 5.08 of the Sale and Servicing Agreement, and Section 8.02(a) of the
Indenture. On each Distribution Date, the Indenture Trustee will be obligated to apply amounts on
deposit in the Yield Supplement Account in accordance with the terms of the Sale and Servicing
Agreement and the Indenture. The Indenture Trustee will be obligated to transfer back to the Owner
Trustee, for the benefit of the Certificateholders, all funds or investments held in the Yield
Supplement Account on the Distribution Date on which the Notes of all Classes have been paid in
full or the Indenture is otherwise terminated (excluding any amounts to be retained for
distribution in respect of Notes that are not promptly delivered for payment on such Distribution
Date), and to take all necessary or appropriate actions to transfer all right, title and interest
of the Indenture Trustee in such funds or investments and all proceeds thereof to the Owner Trustee
for the benefit of the Certificateholders, which amounts the Owner Trustee shall deposit into the
Trust Collection Account.

     SECTION 5.02 Application of Amounts in Trust Accounts.

     (a) For so long as any Notes are outstanding, on each Distribution Date, the Indenture Trustee
will distribute to Certificateholders, on a pro rata basis, the amounts distributable thereto
pursuant to Section 5.06 of the Sale and Servicing Agreement and Section 3.01 of the Indenture.
From and after the date on which the Notes of all Classes have been paid in full, on each
Distribution Date, the Owner Trustee shall distribute to the Certificateholders amounts on deposit
in the Trust Collection Account that are distributable to the Certificateholders in accordance with
the instructions of the Servicer pursuant to Section 5.06 of the Sale and Servicing Agreement.
Upon the release from the Lien of the Indenture of amounts on deposit in the Collection Account or
any other portion of the Owner Trust Estate, the Owner Trustee will cause such property to be
properly deposited into the Trust Collection Account under the control of the Owner Trustee
pursuant to Section 5.01(a) or distributed to the Certificateholders in accordance with the
provisions of this Agreement, as the case may be.

     (b) On each Distribution Date, the Owner Trustee shall send to each Certificateholder the
statement provided to the Owner Trustee by the Servicer pursuant to Section 5.09 of the Sale and
Servicing Agreement with respect to such Distribution Date.

(Nissan _____ Amended and

Restated Trust Agreement)

16

 

     (c) In the event that any withholding tax is imposed on the Trust’s payment (or allocations of
income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to the
Certificateholder in accordance with this Section. The Owner Trustee is hereby authorized and
directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds
for the payment of any tax that is legally owed by the Trust (but such authorization shall not
prevent the Owner Trustee from contesting any such tax in appropriate proceedings, and withholding
payment of such tax, if permitted by law, pending the outcome of such proceedings). The amount of
any withholding tax imposed with respect to a Certificateholder shall be treated as cash
distributed to such Certificateholder at the time it is withheld by the Trust and remitted to the
appropriate taxing authority. If there is a possibility that withholding tax is payable with
respect to any distribution (such as any distribution to a Non-U.S. Person), the Owner Trustee may
in its sole discretion withhold such amounts in accordance with this paragraph (c). In the event
that a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner
Trustee shall reasonably cooperate with such Certificateholder in making such claim so long as such
Certificateholder agrees to reimburse the Owner Trustee for any out-of-pocket expenses incurred.

     (d) The Trust may, from time to time, at its option, and as directed by the Certificateholders
pursuant to Section 6.03 of this Agreement and as provided in Section 5.11 of the Sale and
Servicing Agreement, enter into a Currency Swap Agreement with a Currency Swap Counterparty to swap
amounts payable to Certificateholders from U.S. dollars to Japanese yen; provided, that (1) at the
time the Trust enters into the Currency Swap Agreement, the Rating Agencies have confirmed the
then-existing ratings of the Notes, and (2) any payments to the Currency Swap Counterparty
(including termination payments) are payable only from amounts that are otherwise payable to the
Certificateholders. If the Certificateholders notify the Administrator with respect to the Trust’s
election to enter into such a Currency Swap Agreement, the Administrator will prepare all necessary
and appropriate documentation and take all of the necessary and appropriate actions to cause the
Issuer to enter into such a Currency Swap Agreement on behalf of the Trust. Any payments received
by the Issuer from the Currency Swap Counterparty under such a Currency Swap Agreement shall not be
deposited in the Collection Account and shall be paid by the Indenture Trustee directly to or to
the order of the Certificateholders on the related Distribution Date.

     SECTION 5.03 Method of Payment. Subject to Section 9.01(c), distributions required to
be made to Certificateholders on any Distribution Date shall be made to each Certificateholder of
record on the related Record Date either by check mailed to such Certificateholder at the address
of such holder appearing in the Certificate Register or by wire transfer, in immediately available
funds, to the account of any Certificateholder at a bank or other entity having appropriate
facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar
appropriate written instructions at least five Business Days prior to such Distribution Date.

     SECTION 5.04 Accounting and Reports to the Noteholders, Certificateholders, [the Swap
Counterparty,] the Internal Revenue Service and Others. The Administrator on behalf of the
Trust shall (a) maintain (or cause to be maintained) the books of the Trust on a fiscal year basis
or a calendar basis on the accrual method of accounting, (b) deliver to each Certificateholder, as
may be required by the Code and applicable Treasury Regulations, such

(Nissan _____ Amended and

Restated Trust Agreement)

17

 

information as may be required (excluding Schedule K-1) to enable each Certificateholder to
prepare its federal and state income tax returns, (c) file any tax and information returns, and
fulfill any other reporting requirements, relating to the Trust, as may be required by the Code and
applicable Treasury Regulations (including Treasury Regulation Section 1.6049-7), (d) for any
period during which the beneficial ownership interests in the Trust are held by more than one
Person, make such elections as may from time to time be required or appropriate under any
applicable state or federal statute or rule or regulation thereunder so as to maintain the Trust’s
characterization as a partnership for federal income tax purposes, (e) cause such tax returns to be
signed in the manner required by law, and (f) collect or cause to be collected any withholding tax
as described in and in accordance with Section 5.02(c) with respect to income or distributions to
Certificateholders. The Administrator on behalf of the Trust shall elect under Section 1278 of the
Code to include in income currently any market discount that accrues with respect to the
Receivables. The Administrator on behalf of the Trust shall not make the election provided under
Section 754 of the Code. Notwithstanding anything to the contrary stated herein, the Owner Trustee
shall be exclusively responsible for the mailing of the Schedule K-1’s necessary to enable each
Certificateholder to prepare its federal and state income returns.

     SECTION 5.05 Signature on Returns; Tax Matter Partner.

     (a) The Administrator on behalf of the Trust shall sign on behalf of the Trust the tax returns
of the Trust, unless applicable law requires a Certificateholder to sign such documents, in which
case such documents shall be signed by the Administrator, pursuant to the power-of-attorney granted
thereto pursuant to Section 2.04.

     (b) For any period during which the beneficial ownership interests of the Trust are held by
more than one Person, the Certificateholder holding Certificates evidencing the largest portion of
the Original Certificate Balance shall be designated the “tax matters partner” of the Trust
pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury Regulations, but hereby
delegates its powers and duties as such to the Administrator pursuant to the power-of-attorney
granted thereto pursuant to Section 2.04.

     SECTION 5.06 Duties of Depositor on Behalf of Trust. On behalf of the Trust, the
Depositor shall prepare and, after execution by the Trust and the Indenture Trustee, file with the
Securities and Exchange Commission and any applicable state agencies documents required to be filed
on a periodic basis with the Securities and Exchange Commission and any applicable state agencies
(including any summaries thereof required by rules and regulations prescribed thereby), and
transmitting of such summaries to the Noteholders [and the Swap Counterparty], pursuant to Section
7.03 of the Indenture.

ARTICLE VI

Authority and Duties of Owner Trustee

     SECTION 6.01 General Authority. The Owner Trustee is authorized and directed to
execute and deliver the Basic Documents to which the Trust is to be a party and each certificate or
other document attached as an exhibit to or contemplated by the Basic Documents to which

(Nissan _____ Amended and

Restated Trust Agreement)

18

 

the Trust is to be a party and any amendment thereto, and, on behalf of the Trust, to direct
the Indenture Trustee to authenticate and deliver Class A-1 Notes in the aggregate principal amount
of $___, Class A-2 Notes in the aggregate principal amount of $___, Class A-3 Notes
in the aggregate principal amount of $___, and Class A-4 Notes in the aggregate principal
amount of $___. In addition to the foregoing, the Owner Trustee is authorized, but shall
not be obligated, to take all actions required of the Trust, pursuant to the Basic Documents.

     SECTION 6.02 General Duties. It shall be the duty of the Owner Trustee to discharge
(or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and
the Basic Documents to which the Trust is a party and to administer the Trust in accordance with
the provisions hereof and of the Basic Documents and in the interest of the Certificateholders.
Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and
responsibilities hereunder and under the Basic Documents to the extent the Administrator has agreed
in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee
hereunder or under any Basic Document, and the Owner Trustee shall not be held liable for the
default or failure of the Administrator to carry out such obligations or fulfill such duties under
the Administration Agreement.

     SECTION 6.03 Duties of the Owner Trustee.

     (a) Subject to Article IV and in accordance with the terms of the Basic Documents, the
Certificateholders may by written instruction direct the Owner Trustee in the management of the
Trust. Such direction may be exercised at any time by written instruction of the
Certificateholders pursuant to Article IV. The Owner Trustee accepts the trusts hereby created and
agrees to perform its duties hereunder with respect to such trusts but only upon the terms of this
Agreement. The Owner Trustee, upon receipt of all resolutions, certificates, statements, opinions,
reports, documents, orders or other instruments furnished to the Owner Trustee that shall be
specifically required to be furnished pursuant to any provision of this Agreement, shall examine
them to determine whether they conform on their face to the requirements of this Agreement.

     (b) No provision of this Agreement shall be construed to relieve the Owner Trustee from
liability for its own negligent action, its own negligent failure to act, its own bad faith or its
own willful misfeasance; provided, however, that:

     (i) the duties and obligations of the Owner Trustee shall be determined solely by the
express provisions of this Agreement, the Owner Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in this Agreement,
no implied covenants or obligations shall be read into this Agreement against the Owner
Trustee, the permissive right of the Owner Trustee to do things enumerated in this Agreement
shall not be construed as a duty and, in the absence of bad faith on the part of the Owner
Trustee, the Owner Trustee may conclusively rely, as to the truth of the statements and the
correctness of the opinions expressed therein, upon any certificates or opinions furnished
to the Owner Trustee and conforming on their face to the requirements of this Agreement;

(Nissan _____ Amended and

Restated Trust Agreement)

19

 

     (ii) the Owner Trustee shall not be personally liable for an error of judgment made in
good faith by a Trust Officer, unless it shall be proved that the Owner Trustee was
negligent in performing its duties in accordance with the terms of this Agreement; and

     (iii) the Owner Trustee shall not be personally liable with respect to any action
taken, suffered or omitted to be taken in good faith in accordance with the direction of the
Holders of the Certificates representing at least a majority of the Certificate Balance (or
such larger or smaller percentage of the Certificate Balance as may be required by any other
provision of this Agreement or the other Basic Documents), the Servicer, the Administrator
or the Indenture Trustee.

     (c) The Owner Trustee shall not be required to expend or risk its own funds or otherwise incur
financial liability in the performance of any of its duties under this Agreement, or in the
exercise of any of its rights or powers, if there shall be reasonable grounds for believing that
the repayment of such funds or adequate indemnity against such risk or liability is not reasonably
assured to it.

     (d) All information obtained by the Owner Trustee regarding the Obligors and the Receivables
contained in the Trust, whether upon the exercise of its rights under this Agreement or otherwise,
shall be maintained by the Owner Trustee in confidence and shall not be disclosed to any other
Person, unless such disclosure is required by any applicable law or regulation or pursuant to
subpoena or is required to be made to regulators, auditors or other governmental authorities.

     (e) Pursuant to Section 3.02 of the Sale and Servicing Agreement, in the event that the Owner
Trustee discovers that a representation or warranty made by the Seller pursuant to Section 3.01 or
6.01 of the Sale and Servicing Agreement with respect to a Receivable was incorrect as of the time
specified with respect to such representation and warranty and such incorrectness materially and
adversely affects the interests of any Securityholder [or the Swap Counterparty] in such
Receivable, the Owner Trustee shall give prompt written notice to the Servicer, the Depositor and
the Indenture Trustee of such incorrectness. Pursuant to Section 4.06 of the Sale and Servicing
Agreement, if the Owner Trustee discovers that any covenant of the Servicer set forth in the second
sentence of Section 4.01 or Section 4.02, 4.04 or 4.05 of the Sale and Servicing Agreement has been
breached by the Servicer, the Owner Trustee shall give prompt written notice to the Servicer, the
Depositor and the Indenture Trustee of such breach.

     SECTION 6.04 No Duties Except as Specified in this Agreement or in Instructions. The
Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to,
register, record, sell, dispose of, or otherwise deal with the Owner Trust Estate, or to otherwise
take or refrain from taking any action under, or in connection with, any Basic Document to which
the Owner Trustee is a party or otherwise contemplated hereby, except as expressly provided by the
terms of this Agreement, any Basic Document to which the Trust is a party or in any document or
written instruction received by the Owner Trustee pursuant to Section 6.03. No implied duties or
obligations shall be read into this Agreement or any Basic Document against the Owner Trustee. The
Owner Trustee shall have no responsibility for filing

(Nissan _____ Amended and

Restated Trust Agreement)

20

 

any financing or continuation statement in any public office at any time or otherwise to
perfect or maintain the perfection of any security interest or lien granted to it hereunder or to
prepare or file any Securities and Exchange Commission filing for the Trust or to record this
Agreement or any Basic Document. Notwithstanding anything to the contrary herein or in any Basic
Document, the Owner Trustee shall not be required to execute, deliver or certify on behalf of the
Trust or any other Person any filings, certificates, affidavits or other instruments required under
the Sarbanes-Oxley Act of 2002, to the extent permitted by applicable law. The Owner Trustee
nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be
necessary to discharge any liens on any part of the Owner Trust Estate that result from actions by,
or claims against, the Owner Trustee that are not related to the ownership or the administration of
the Owner Trust Estate.

     SECTION 6.05 No Action Except Under Specified Documents or Instructions. The Owner
Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the
Owner Trust Estate except (i) in accordance with the powers granted to and the authority conferred
upon the Owner Trustee pursuant to this Agreement, (ii) in accordance with the Basic Documents and
(iii) in accordance with any document or instruction delivered to the Owner Trustee pursuant to
Section 6.03.

     SECTION 6.06 Restrictions. The Owner Trustee shall not take any action (a) that is
inconsistent with the purposes of the Trust set forth in Section 2.03 or (b) that, to the actual
knowledge of a Trust Officer of the Owner Trustee, (x) would result in the Trust’s becoming taxable
as a corporation for federal income tax purposes or (y) affect the treatment of the Notes as
indebtedness for federal or state income purpose. The Certificateholders shall not have the
authority to and, by acceptance of an ownership interest in any Certificate shall thereby be deemed
to have covenanted not to, direct the Owner Trustee to take any action that would violate the
provisions of this Section.

ARTICLE VII

Concerning the Owner Trustee

     SECTION 7.01 Rights of the Owner Trustee. Except as otherwise provided in Article VI:

     (a) in accordance with Section 7.04, the Owner Trustee may rely and shall be protected in
acting or refraining from acting upon any resolution, Officer’s Certificate, certificate of an
authorized signatory, certificate of auditors or any other certificate, statement, instrument,
opinion, report, notice, request, consent, order, appraisal, bond or other paper or document
believed by it to be genuine and to have been signed or presented by the proper party or parties;

     (b) the Owner Trustee shall not be liable with respect to any action taken or omitted to be
taken by it in accordance with the instructions of the Administrator, as provided in the
Administration Agreement, the Servicer or the Indenture Trustee, or the Certificateholders, as
provided herein;

(Nissan _____ Amended and

Restated Trust Agreement)

21

 

     (c) the Owner Trustee shall be under no obligation to exercise any of the rights or powers
vested in it by this Agreement or the Sale and Servicing Agreement, or to institute, conduct or
defend any litigation under this Agreement, or in relation to this Agreement or the Sale and
Servicing Agreement, at the request, order or direction of any of the Securityholders [or the Swap
Counterparty,] pursuant to the provisions of this Agreement or the Sale and Servicing Agreement,
unless such Securityholders [or the Swap Counterparty, as the case may be,] shall have offered to
the Owner Trustee reasonable security or indemnity against the costs, expenses and liabilities that
may be incurred therein or thereby;

     (d) under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or
arising under any of the Basic Documents, including the principal of and interest on the Notes;

     (e) the Owner Trustee shall not be bound to recalculate, reverify, or make any investigation
into the facts of matters stated in any resolution, certificate, statement, instrument, opinion,
report, notice, request, consent, order, approval, bond or other paper or document, unless
requested in writing to do so by Holders of Certificates representing not less than 25% of the
Certificate Balance; provided, however, that if the payment within a reasonable
time to the Owner Trustee of the costs, expenses or liabilities likely to be incurred by it in the
making of such investigation is, in the opinion of the Owner Trustee, not reasonably assured to the
Owner Trustee by the security afforded to it by the terms of this Agreement, the Owner Trustee may
require reasonable indemnity against such cost, expense or liability as a condition to so
proceeding; the reasonable expense of every such examination shall be paid by the Administrator or,
if paid by the Owner Trustee, shall be reimbursed by the Administrator upon demand; and nothing in
this clause shall derogate from the obligation of the Servicer to observe any applicable law
prohibiting disclosure of information regarding the Obligors; and

     (f) the Owner Trustee shall not be liable for the default or misconduct of the Administrator,
the Servicer, the Depositor[, or] the Indenture Trustee [or the Swap Counterparty] under any of the
Basic Documents or otherwise, and the Owner Trustee shall have no obligation or liability to
perform the obligations of the Trust or any other Person (including the Owner Trustee) under the
Basic Documents that are required to be performed by the Administrator under the Administration
Agreement, the Indenture Trustee under the Indenture or the Servicer under the Sale and Servicing
Agreement [or the Interest Rate Swap Agreement].

     SECTION 7.02 Furnishing of Documents. The Owner Trustee shall furnish to the
Certificateholders promptly upon receipt of a written request therefor, duplicates or copies of all
reports, notices, requests, demands, certificates, financial statements and any other instruments
furnished to the Owner Trustee under the Basic Documents.

     SECTION 7.03 Representations and Warranties. The Owner Trustee hereby represents and
warrants to the Depositor and for the benefit of the Certificateholders, that:

     (a) It is a banking corporation duly organized and validly existing in good standing under the
laws of Delaware. It has full power, right and authority to execute, deliver and perform its
obligations under this Agreement and each other Basic Document.

(Nissan _____ Amended and

Restated Trust Agreement)

22

 

     (b) It has taken all corporate action necessary to authorize the execution and delivery of
this Agreement and each other Basic Document, and this Agreement and each other Basic Document has
been executed and delivered by one of its officers duly authorized to execute and deliver this
Agreement and each other Basic Document on its behalf.

     (c) This Agreement constitutes the legal, valid and binding obligation of the Owner Trustee,
enforceable against it in accordance with its terms except as the enforceability thereof may be
limited by bankruptcy, insolvency, moratorium, reorganization or other similar laws affecting the
enforcement of creditors’ rights generally and by general principles of equity.

     (d) It is authorized to exercise trust powers in the State of Delaware as and to the extent
contemplated herein or has appointed a Delaware trustee that is so authorized and it has a
principal place of business in the State of Delaware or has appointed a Delaware trustee that has
such a principal place of business.

     (e) Neither the execution nor the delivery by it of this Agreement nor the consummation by the
Owner Trustee of the transactions contemplated hereby or thereby nor compliance by it with any of
the terms or provisions hereof or thereof will contravene any federal or Delaware law, governmental
rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or
order binding on it, or constitute any default under its charter documents or by-laws or any
indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of
its properties may be bound.

     SECTION 7.04 Reliance; Advice of Counsel.

     (a) The Owner Trustee shall incur no liability to anyone in acting upon any signature,
instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond, or
other document or paper believed by it to be genuine and believed by it to be signed by the proper
party or parties. The Owner Trustee may accept a certified copy of a resolution of the board of
directors or other governing body of any corporate party as conclusive evidence that such
resolution has been duly adopted by such body and that the same is in full force and effect. As to
any fact or matter the method of the determination of which is not specifically prescribed herein,
the Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any
vice president or by the treasurer or other authorized officers or agents of the relevant party, as
to such fact or matter and such certificate shall constitute full protection to the Owner Trustee
for any action taken or omitted to be taken by it in good faith in reliance thereon.

     (b) In the exercise or administration of the trusts hereunder and in the performance of its
duties and obligations under the Basic Documents, the Owner Trustee (i) may act directly or through
its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee
shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or
attorneys shall have been selected by the Owner Trustee with reasonable care, and (ii) may consult
with counsel, accountants and other skilled persons to be selected with reasonable care and
employed by it. The Owner Trustee shall not be liable for anything done, suffered or omitted in
good faith by it in accordance with the opinion or advice of any such

(Nissan _____ Amended and

Restated Trust Agreement)

23

 

counsel, accountants or other such persons and not, to the actual knowledge of the Owner
Trustee, contrary to this Agreement or any Basic Document.

     SECTION 7.05 Not Acting in Individual Capacity. In accepting the trusts hereby
created, Wilmington Trust Company acts solely as Owner Trustee hereunder and not in its individual
capacity. Except with respect to a claim based on the Owner Trustee’s willful misconduct, bad
faith or negligence, no recourse shall be had for any claim based on any provision of this
Agreement, the Notes or Certificates, or based on rights obtained through the assignment of any of
the foregoing, against the institution serving as the Owner Trustee in its individual capacity.
The Owner Trustee shall not have any personal obligation, liability or duty whatsoever to any
Securityholder[, the Swap Counterparty] or any other Person with respect to any such claim, and any
such claim shall be asserted solely against the Trust or any indemnitor who shall furnish indemnity
as provided in this Indenture.

     SECTION 7.06 Owner Trustee Not Liable for Certificates or Receivables. The Owner
Trustee makes no representations as to the validity or sufficiency of this Agreement or of the
Certificates or of the Notes (other than the execution by the Owner Trustee on behalf of the Trust
of, and the certificate of authentication on, the Certificates). The Owner Trustee shall have no
obligation to perform any of the duties of the Servicer or Administrator.

     The Owner Trustee shall at no time have any responsibility or liability for or with respect to
the legality, validity and enforceability of the Certificates, the Notes or any Receivable, any
ownership interest in any Financed Vehicle, or the maintenance of any such ownership interest, or
for or with respect to the efficacy of the Trust or its ability to generate the payments to be
distributed to Securityholders [and the Swap Counterparty] under this Agreement and the Indenture,
including without limitation the validity of the assignment of the Receivables to the Trust or of
any intervening assignment; the existence, condition, location and ownership of any Receivable or
Financed Vehicle; the existence and enforceability of any physical damage or credit life or credit
disability insurance; the existence and contents of any retail installment sales contract or any
computer or other record thereof; the completeness of any retail installment sales contract; the
performance or enforcement of any retail installment sales contract; the compliance by the Trust
with any covenant or the breach by the Trust of any warranty or representation made under this
Agreement or in any related document and the accuracy of any such warranty or representation prior
to the Owner Trustee’s receipt of notice or other discovery of any noncompliance therewith or any
breach thereof; the acts or omissions of the Trust or the Servicer; or any action by the Owner
Trustee taken at the instruction of the Certificateholders, provided, however, that
the foregoing shall not relieve the Owner Trustee of its obligation to perform its duties under
this Agreement.

     The Owner Trustee shall not be accountable for the use or application by the Issuer of any of
the Certificates or of the proceeds of such Certificates, of any of the Notes or of the proceeds of
such Notes, or for the use or application of any funds paid to the Servicer in respect of the
Certificates.

     SECTION 7.07 Owner Trustee May Own Certificates and Notes. The Owner Trustee in its
individual or any other capacity (but not in its fiduciary capacity) may become the owner or
pledgee of Certificates or Notes and may deal with the Depositor, the Administrator, the

(Nissan _____ Amended and

Restated Trust Agreement)

24

 

Indenture Trustee and the Servicer in banking or other transactions with the same rights as it
would have if it were not Owner Trustee.

     SECTION 7.08 Sales Finance Licenses. The Owner Trustee shall cause the Trust to use
its best efforts to maintain the effectiveness of all licenses required to be held by the Trust
under the laws of any jurisdiction in connection with ownership of the Receivables or the terms set
forth in this Agreement and the Basic Documents and the transactions contemplated hereby and
thereby until such time as the Trust shall terminate in accordance with the terms hereof.

ARTICLE VIII

Compensation of Owner Trustee

     SECTION 8.01 Owner Trustee’s Fees and Expenses. The Depositor shall pay or shall cause
the Servicer to pay to the Owner Trustee from time to time compensation for its services as have
been separately agreed upon before the date hereof. The Depositor shall reimburse the Owner
Trustee for all reasonable out-of-pocket expenses incurred or made by it, including costs of
collection, in addition to the compensation for its services. Such expenses shall include the
reasonable compensation and expenses, disbursements and advances of the Owner Trustee’s agents,
counsel, accountants and experts directly related to its services hereunder (“Expenses”).

     SECTION 8.02 Indemnification. The Depositor shall cause the Servicer or the
Administrator to indemnify the Owner Trustee against any and all loss, liability, claim, tort,
penalty or Expense (including reasonable attorneys’ fees) of any kind or nature whatsoever incurred
by it in connection with the administration of the Trust and the performance of its duties
hereunder. The Owner Trustee shall notify the Administrator and the Servicer promptly of any claim
for which it may seek indemnity. Failure by the Owner Trustee to so notify the Administrator and
the Servicer shall not relieve the Depositor or the Administrator or the Servicer of its
obligations hereunder, except to the extent such failure shall adversely affect the Depositor’s or
the Administrator’s or the Servicer’s defenses in respect thereof. In case any such action is
brought against the Owner Trustee under this Section 8.02 and it notifies the Administrator of the
commencement thereof, the Administrator will assume the defense thereof, with counsel reasonably
satisfactory to the Owner Trustee (who may, unless there is, as evidenced by an opinion of counsel
to the Owner Trustee stating that there is a conflict of interest, be counsel to the
Administrator), and the Administrator will not be liable to the Owner Trustee under this Section
for any legal or other expenses subsequently incurred by the Owner Trustee in connection with the
defense thereof, other than reasonable costs of investigation. Neither the Depositor nor the
Administrator nor the Servicer need reimburse any expense or indemnify against any loss, liability
or expense incurred by the Owner Trustee through the Owner Trustee’s own willful misconduct,
negligence or bad faith. The Owner Trustee’s rights under this Article VIII shall survive the
termination of this Agreement or the resignation or removal of the Owner Trustee. The Depositor
will not be entitled to make any claim upon the Owner Trust Estate for the payment of any
liabilities or indemnified expenses in relation to

(Nissan _____ Amended and

Restated Trust Agreement)

25

 

Depositor’s payment or indemnification of expenses incurred by Owner Trustee in the
performance of its duties hereunder.

     SECTION 8.03 Payments to the Owner Trustee. Any amounts paid to the Owner Trustee
pursuant to this Article VIII from assets in the Owner Trust Estate shall be deemed not to be a
part of the Owner Trust Estate immediately after such payment.

ARTICLE IX

Termination of Trust Agreement

     SECTION 9.01 Termination of Trust Agreement.

     (a) This Agreement (other than Article VIII) shall terminate and the Trust shall dissolve and
be wound up in accordance with Section 3808 of the Statutory Trust Act, upon the earliest of (i)
the maturity or other liquidation of the last Receivable (or other asset) in the Owner Trust Estate
and the final distribution of all moneys or other property or proceeds of the Owner Trust Estate in
accordance with the terms of this Agreement, the Indenture and the Sale and Servicing Agreement
(including, but not limited to, any property and proceeds to be deposited in the Collection Account
pursuant to the terms of the Sale and Servicing Agreement or to be released by the Indenture
Trustee from the Lien of the Indenture pursuant to the terms of the Indenture), and (ii) the
election by the Servicer to purchase the corpus of the Trust pursuant to Section 9.01 of the Sale
and Servicing Agreement and the payment or distribution to all Securityholders [and the Swap
Counterparty] of all amounts required to be paid to them under the Indenture and this Agreement.
The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not
(x) operate to terminate this Agreement or the Trust, nor (y) entitle such Certificateholder’s
legal representatives or heirs to claim an accounting or to take any action or proceeding in any
court for a partition or winding up of all or any part of the Trust or Owner Trust Estate, nor (z)
otherwise affect the rights, obligations and liabilities of the parties hereto.

     (b) Except as provided in Section 9.01(a), neither the Depositor nor any Certificateholder
shall be entitled to revoke or terminate the Trust.

     (c) Notice of any termination of the Trust, specifying the Distribution Date upon which the
Certificateholders shall surrender their Certificates to the Paying Agent for payment of the final
distributions and cancellation, shall be given by the Owner Trustee to the Certificateholders
mailed within five Business Days of receipt of notice of such termination from the Servicer given
pursuant to Section 10.03 of the Sale and Servicing Agreement, stating (i) the Distribution Date
upon or with respect to which final payment of the Certificates shall be made upon presentation and
surrender of the Certificates at the office of the Paying Agent therein designated, (ii) the amount
of any such final payment and (iii) that payment to be made on such Distribution Date will be made
only upon presentation and surrender of the Certificates at the office of the Paying Agent therein
specified. The Owner Trustee shall give such notice to the Certificate Registrar (if other than
the Owner Trustee) and the Paying Agent (if other than the Owner Trustee) at the time such notice
is given to Certificateholders. Upon presentation and

(Nissan _____ Amended and

Restated Trust Agreement)

26

 

surrender of the Certificates, the Paying Agent shall cause to be distributed to
Certificateholders amounts distributable on such Distribution Date pursuant to Section 5.02.

     In the event that one or more of the Certificateholders shall not surrender their Certificates
for cancellation within six months after the date specified in the above-mentioned written notice,
the Owner Trustee shall give a second written notice to the remaining Certificateholders to
surrender their Certificates for cancellation and receive the final distribution with respect
thereto. If within one year after the second notice all the Certificates shall not have been
surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent
to take appropriate steps, to contact the remaining Certificateholders concerning surrender of
their Certificates, and the cost thereof shall be paid out of the funds and other assets that shall
remain subject to this Agreement. Any funds remaining in the Trust after exhaustion of such
remedies shall be distributed by the Owner Trustee to the Depositor.

     (d) Upon the winding up of the Trust and its termination, the Owner Trustee shall cause the
Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of
State in accordance with the provisions of Section 3810 of the Statutory Trust Act.

ARTICLE X

Successor Owner Trustees and Additional Owner Trustees

     SECTION 10.01 Eligibility Requirements for Owner Trustee. The Owner Trustee shall at
all times be an entity having a combined capital and surplus of at least $50,000,000 and be subject
to supervision or examination by federal or state authorities and be authorized to exercise trust
powers in the State of Delaware. If such entity shall publish reports of condition at least
annually, pursuant to law or to the requirements of the aforesaid supervising or examining
authority, then for the purpose of this Section 10.01, the combined capital and surplus of such
corporation shall be deemed to be its combined capital and surplus as set forth in its most recent
report of condition so published. In case at any time the Owner Trustee shall cease to be eligible
in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in
the manner and with the effect specified in Section 10.02.

     SECTION 10.02 Resignation or Removal of Owner Trustee. The Owner Trustee may at any
time resign and be discharged from the trusts hereby created by giving written notice thereof to
the Depositor, the Servicer and the Indenture Trustee. If for any reason, Wilmington Trust Company
or any of its Affiliates should assume the duties of the Indenture Trustee, then from that time
forward Wilmington Trust Company, in its capacity as Owner Trustee, shall resign as Owner Trustee
hereunder if any Event of Default under the Indenture occurs and is necessary to eliminate any
conflict of interest under the TIA with the Indenture Trustee or any other trustee under the
Indenture. Upon receiving such notice of resignation, the Servicer shall promptly appoint a
successor Owner Trustee by written instrument, in duplicate, one copy of which shall be delivered
to each of the resigning Owner Trustee and the successor Owner Trustee. If no successor Owner
Trustee shall have been so appointed or shall not have accepted such appointment within 30 days
after the giving of such notice of resignation, the resigning Owner

(Nissan _____ Amended and

Restated Trust Agreement)

27

 

Trustee may petition any court of competent jurisdiction for the appointment of a successor
Owner Trustee.

     If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions
of Section 10.01 and shall fail to resign promptly, or if at any time the Owner Trustee shall be
legally unable to act, or shall be adjudged bankrupt or insolvent, or a receiver of the Owner
Trustee or of its property shall be appointed, or any public officer shall take charge or control
of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation
or liquidation, then the Administrator may remove the Owner Trustee by written instrument to such
effect delivered to the Owner Trustee, the Depositor and the Indenture Trustee. If the
Administrator shall remove the Owner Trustee under the authority of the immediately preceding
sentence, the Servicer shall promptly appoint a successor Owner Trustee by written instrument in
duplicate, one copy of which instrument shall be delivered to each of the outgoing Owner Trustee so
removed and the successor Owner Trustee, and pay all fees, expenses and other compensation owed to
the outgoing Owner Trustee.

     Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee
pursuant to any of the provisions of this Section shall not become effective until acceptance of
appointment by the successor Owner Trustee pursuant to Section 10.03 and payment of all fees and
expenses owed to the outgoing Owner Trustee. The Administrator shall provide notice of such
resignation or removal of the Owner Trustee to each of the Rating Agencies.

     SECTION 10.03 Successor Owner Trustee. Any successor Owner Trustee appointed pursuant
to Section 10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor
Owner Trustee an instrument accepting such appointment under this Agreement, and thereupon the
resignation or removal of the predecessor Owner Trustee shall become effective and such successor
Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the
rights, powers, duties, and obligations of its predecessor under this Agreement, with like effect
as if originally named as Owner Trustee. The predecessor Owner Trustee shall upon payment of its
fees and expenses deliver to the successor Owner Trustee all documents and statements and monies
held by it under this Agreement; and the Administrator and the predecessor Owner Trustee shall
execute and deliver such instruments and do such other things as may reasonably be required for
fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers,
duties, and obligations.

     No successor Owner Trustee shall accept appointment as provided in this Section unless at the
time of such acceptance such successor Owner Trustee shall meet the criteria for eligibility set
forth in Section 10.01.

     Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the
Administrator shall mail notice of the successor of the Owner Trustee to all Certificateholders,
the Indenture Trustee, all Noteholders[, the Swap Counterparty] and the Rating Agencies. If the
Administrator fails to mail such notice within 10 days after acceptance of appointment by the
successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the
expense of the Administrator.

(Nissan _____ Amended and

Restated Trust Agreement)

28

 

     SECTION 10.04 Merger or Consolidation of Owner Trustee. Any corporation into which
the Owner Trustee may be merged or converted or with which it may be consolidated or any
corporation resulting from any merger, conversion or consolidation to which the Owner Trustee shall
be a party, or any corporation succeeding to all or substantially all of the corporate trust
business of the Owner Trustee, shall be the successor of the Owner Trustee hereunder, provided such
corporation shall be eligible pursuant to Section 10.01, without the execution or filing of any
instrument or any further act on the part of any of the parties hereto, anything herein to the
contrary notwithstanding; provided, further, that the Owner Trustee shall mail
notice of such merger or consolidation to the Rating Agencies.

     SECTION 10.05 Appointment of Co-Trustee or Separate Trustee. Notwithstanding any
other provisions of this Agreement, at any time, for the purpose of meeting any legal requirements
of any jurisdiction in which any part of the Owner Trust Estate or any Financed Vehicle may at the
time be located, the Administrator and the Owner Trustee acting jointly shall have the power and
shall execute and deliver all instruments to appoint one or more Persons approved by the Owner
Trustee to act as co-trustee, jointly with the Owner Trustee, or separate trustee or separate
trustees, of all or any part of the Owner Trust Estate, and to vest in such Person, in such
capacity, such title to the Trust, or any part thereof, and, subject to the other provisions of
this Section, such powers, duties, obligations, rights and trusts as the Administrator and the
Owner Trustee may consider necessary or desirable. If the Administrator shall not have joined in
such appointment within 25 days after the receipt by it of a request so to do, the Owner Trustee
alone shall have the power to make such appointment. No co-trustee or separate trustee under this
Agreement shall be required to meet the terms of eligibility as a trustee pursuant to Section 10.01
and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant
to Section 10.03.

     Each separate trustee and co-trustee shall, to the extent permitted by law, be appointed and
act subject to the following provision and conditions:

     (i) all rights, powers, duties and obligations conferred or imposed upon the Owner
Trustee shall be conferred upon and exercised or performed by the Owner Trustee and such
separate trustee or co-trustee jointly (it being understood that such separate trustee or
co-trustee is not authorized to act separately without the Owner Trustee joining in such
act), except to the extent that under any law of any jurisdiction in which any particular
act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to
perform such act or acts, in which event such rights, powers, duties, and obligations
(including the holding of title to the Trust or any portion thereof in any such
jurisdiction) shall be exercised and performed singly by such separate trustee or
co-trustee, but solely at the direction of the Owner Trustee;

     (ii) no trustee under this Agreement shall be personally liable by reason of any act or
omission of any other trustee under this Agreement; and

     (iii) the Administrator and the Owner Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.

(Nissan _____ Amended and

Restated Trust Agreement)

29

 

     Any notice, request or other writing given to the Owner Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as if given to each of them. Each
separate trustee and co-trustee, upon its acceptance of the powers and duties conferred thereto
under this Agreement, shall be vested with the estates or property specified in its instrument of
appointment, either jointly with the Owner Trustee or separately, as may be provided therein,
subject to all the provisions of this Agreement, specifically including every provision of this
Agreement relating to the conduct of, affecting the liability of, or affording protection to, the
Owner Trustee. Each such instrument shall be filed with the Owner Trustee and a copy thereof given
to the Administrator.

     Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its agent or
attorney-in-fact with full power and authority, to the extent not prohibited by law, to do any
lawful act under or in respect, of this Agreement on its behalf and in its name. If any separate
trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its
estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner
Trustee, to the extent permitted by law, without the appointment of a new or successor trustee.

ARTICLE XI

Miscellaneous

     SECTION 11.01 Supplements and Amendments. This Agreement may be amended by the
Depositor and the Owner Trustee, with prior written notice to the Rating Agencies, without the
consent of any of the Noteholders[, the Swap Counterparty] or the Certificateholders, to cure any
ambiguity, to correct or supplement any provisions in this Agreement or for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions in this Agreement
or of modifying in any manner the rights of the Noteholders[, the Swap Counterparty] or the
Certificateholders; provided, however, that such action shall not, as evidenced by
an Opinion of Counsel, adversely affect in any material respect the interests of any Noteholder[,
the Swap Counterparty] or Certificateholder.

     This Agreement may also be amended from time to time by the Depositor and the Owner Trustee,
with prior written notice to the Rating Agencies, with the consent of the Holders of the Notes
evidencing not less than a majority of the Outstanding Amount of the Notes (excluding for such
purpose Notes owned by NARC II, NMAC or any of their Affiliates unless at such time all Notes are
then owned by NARC II, NMAC and their Affiliates) or if all of the Notes have been paid in full,
the Holders of the Certificates evidencing not less than a majority of the Certificate Balance
(excluding for such purpose Certificates owned by NARC II, NMAC or any of their Affiliates unless
at such time all Certificates are then owned by NARC II, NMAC and their Affiliates) for the purpose
of adding any provisions to or changing in any manner or eliminating any of the provisions of this
Agreement or of modifying in any manner the rights of the Noteholders[, the Swap Counterparty] or
the Certificateholders; provided, however, that no such amendment shall (a)
increase or reduce in any manner the amount of, or accelerate or delay the timing of, collections
of payments on Receivables or distributions that shall be required to be made for the benefit of
the Noteholders[, the Swap Counterparty] or the Certificateholders or (b) reduce the aforesaid
percentage of the Outstanding Amount of the Notes and the Certificate

(Nissan _____ Amended and

Restated Trust Agreement)

30

 

Balance required to consent to any such amendment, without the consent of the Holders of all
the affected Notes and Certificates.

     Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish
written notification of the substance of such amendment or consent to each Certificateholder, the
Indenture Trustee and each of the Rating Agencies.

     It shall not be necessary for the consent of Certificateholders, the Noteholders[, the Swap
Counterparty] or the Indenture Trustee pursuant to this Section to approve the particular form of
any proposed amendment or consent, but it shall be sufficient if such consent shall approve the
substance thereof. The manner of obtaining such consents (and any other consents of
Certificateholders provided for in this Agreement or in any other Basic Document) and of evidencing
the authorization of the execution thereof by Certificateholders shall be subject to such
reasonable requirements as the Owner Trustee may prescribe.

     Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee
shall cause the filing of such amendment with the Secretary of State.

     Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the
Owner Trustee shall be entitled to receive and rely upon an Opinion of Counsel stating that the
execution of such amendment is authorized or permitted by this Agreement. The Owner Trustee may,
but shall not be obligated to, enter into any such amendment which affects the Owner Trustee’s own
rights, duties or immunities under this Agreement or otherwise.

     SECTION 11.02 No Legal Title to Owner Trust Estate in Certificateholders. The
Certificateholders shall not have legal title to any part of the Owner Trust Estate. The
Certificateholders shall be entitled to receive distributions with respect to their undivided
ownership interest therein only in accordance with Articles V and IX. No transfer, by operation of
law or otherwise, of any right, title or interest of the Certificateholders to and in their
ownership interest in the Owner Trust Estate shall operate to terminate this Agreement or the
trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title
to any part of the Owner Trust Estate.

     SECTION 11.03 Limitations on Rights of Others. Except for Section 2.06, the
provisions of this Agreement are solely for the benefit of the Owner Trustee, the Depositor, the
Certificateholders, the Administrator and, to the extent expressly provided herein the Indenture
Trustee[, the Swap Counterparty] and the Noteholders, and nothing in this Agreement (other than
Section 2.06), whether express or implied, shall be construed to give to any other Person any legal
or equitable right, remedy or claim in the Owner Trust Estate or under or in respect of this
Agreement or any covenants, conditions or provisions contained herein.

     SECTION 11.04 Notices.

     (a) Unless otherwise expressly specified or permitted by the terms hereof, all notices shall
be in writing and shall be deemed given upon receipt by the intended recipient or three Business
Days after mailing if mailed by certified mail, postage prepaid (except that notice to the

(Nissan _____ Amended and

Restated Trust Agreement)

31

 

Owner Trustee shall be deemed given only upon actual receipt by the Owner Trustee), if to the
Owner Trustee, addressed to the Corporate Trust Office; if to the Depositor, addressed to Nissan
Auto Receivables Corporation II, P.O. Box 685001, Franklin, Tennessee 37068-5001, Attention:
Treasurer; if, to the Trust, addressed to Nissan Auto Receivables ___Owner Trust, c/o Wilmington
Trust Company, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890,
Attention: Nissan Auto Receivables ___Owner Trust, with a copy to Nissan Motor Acceptance
Corporation, BellSouth Tower, 333 Commerce Street, 10th Floor, B-10-C, Nashville,
Tennessee 37201-1800, Attention: Treasurer; or, as to each party, at such other address as shall be
designated by such party in a written notice to each other party.

     (b) Any notice required or permitted to be given a Certificateholder shall be given by
first-class mail, postage prepaid, at the address of such Holder as shown in the Certificate
Register. Any notice so mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Certificateholder receives such notice.

     SECTION 11.05 Severability. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held invalid or
unenforceable in any jurisdiction, then such covenants, agreements, provisions or terms shall be
deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement
and shall in no way affect the validity or enforceability of the other provisions of this Agreement
or of the Certificates or the rights of the Holders thereof.

     SECTION 11.06 Counterparts. This Agreement may be executed simultaneously in any
number of counterparts, each of which shall be deemed to be an original, and all of which shall
constitute but one and the same instrument.

     SECTION 11.07 Successors and Assigns. All covenants and agreements contained herein
shall be binding upon, and inure to the benefit of, the Depositor, the Owner Trustee and its
successors and each Certificateholder and its successors and permitted assigns, all as herein
provided. Any request, notice, direction, consent, waiver or other instrument or action by a
Certificateholder shall bind the successors and assigns of such Certificateholder.

     SECTION 11.08 No Petition. The Owner Trustee (not in its individual capacity but
solely as Owner Trustee), by entering into this Agreement, hereby covenants and agrees, and each
Certificateholder, by accepting a Certificate, and the Indenture Trustee[, the Swap Counterparty]
and any Noteholder by accepting the benefits of this Agreement, are thereby deemed to covenant and
agree that they will not at any time institute against the Depositor or the Trust, or join in any
institution against the Depositor or the Trust of, any bankruptcy, reorganization, arrangement,
insolvency or liquidation proceedings, or other proceedings under any federal or state bankruptcy
or similar law. This Section 11.08 shall survive the termination of this Agreement or the
termination of the Owner Trustee under this Agreement.

     SECTION 11.09 No Recourse. Each Certificateholder by accepting an interest in a
Certificate acknowledges that such Certificates represent beneficial interests in the Trust only
and do not represent interests in or obligations of the Depositor, NMAC (in any capacity), the

(Nissan _____ Amended and

Restated Trust Agreement)

32

 

Administrator, the Owner Trustee, the Indenture Trustee or any Affiliate thereof and no
recourse may be had against such parties or their assets, except as may be expressly set forth or
contemplated in the Certificates or the Basic Documents.

     SECTION 11.10 Headings. The headings of the various Articles and Sections herein are
for convenience of reference only and shall not define or limit any of the terms or provisions
hereof.

     SECTION 11.11 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW
PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED
IN ACCORDANCE WITH SUCH LAWS.

     SECTION 11.12 NMAC Payment Obligation. The parties hereto acknowledge and agree that,
pursuant to the Sale and Servicing Agreement, the Servicer shall be responsible for payment of the
Administrator’s fees under the Administration Agreement and shall reimburse the Administrator for
all expenses and liabilities of the Administrator incurred thereunder. In addition, the parties
hereto acknowledge and agree that, pursuant to the Sale and Servicing Agreement, the Servicer shall
be responsible for the payment of all fees and expenses of the Trust, the Owner Trustee (to the
extent not paid by the Depositor or the Administrator) and the Indenture Trustee paid by any of
them in connection with any of their obligations under the Basic Documents to obtain or maintain
any license required to be held by the Trust under the laws of any jurisdiction in connection with
ownership of the Receivables.

(Nissan _____ Amended and

Restated Trust Agreement)

33

 

     IN WITNESS WHEREOF, the parties hereto have caused this Trust Agreement to be duly executed by
their respective officers hereunto duly authorized, as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	NISSAN AUTO RECEIVABLES 

CORPORATION II, as Depositor
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 
	 
	 	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner

Trustee
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:	 	 
	 

	 	 	 	Title:	 	 

(Nissan _____ Amended and

Restated Trust Agreement)

S-1

 

EXHIBIT A

(FORM OF CERTIFICATE)

     THIS CERTIFICATE IS NON-TRANSFERABLE.

     THIS CERTIFICATE DOES NOT CONSTITUTE AN OBLIGATION OF OR AN INTEREST IN THE DEPOSITOR, THE
OWNER TRUSTEE, THE SERVICER, THE ADMINISTRATOR, NMAC, NARC II, NISSAN NORTH AMERICA, INC. OR ANY OF
THEIR RESPECTIVE AFFILIATES, AND WILL NOT BE INSURED OR GUARANTEED BY ANY SUCH ENTITY OR BY ANY
GOVERNMENTAL AGENCY.

     EACH PURCHASER AND TRANSFEREE OF THIS CERTIFICATE WILL BE DEEMED TO REPRESENT, WARRANT AND
COVENANT THAT IT IS NOT ACQUIRING THE NOTE WITH THE ASSETS OF AN “EMPLOYEE BENEFIT PLAN” AS DEFINED
IN SECTION 3(3) OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), WHICH
IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, A “PLAN” DESCRIBED IN SECTION 4975(e)(1) OF THE
INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR AN ENTITY WHOSE UNDERLYING ASSETS
INCLUDE “PLAN ASSETS” BY REASON OF AN EMPLOYEE BENEFIT PLAN’S OR PLAN’S INVESTMENT IN THE ENTITY OR
ANY OTHER EMPLOYEE BENEFIT PLAN THAT IS SUBJECT TO A LAW SIMILAR TO TITLE I OF ERISA OR SECTION
4975 OF THE CODE.

(Nissan _____ Amended and

Restated Trust Agreement)

A-1

 

	 	 	 
	NUMBER

	 	$                    
	R-___
	 	 

NISSAN AUTO RECEIVABLES _________ OWNER TRUST

ASSET BACKED CERTIFICATE

evidencing a fractional undivided ownership interest in the Trust, as defined below, the property
of which includes a pool of retail installment sale contracts secured by new, near-new and used
automobiles and light-duty trucks and sold to the Trust by Nissan Auto Receivables Corporation II
(“NARC II”).

(This Certificate does not represent an interest in or obligation of NARC II, Nissan Motor
Acceptance Corporation (“NMAC”), Nissan North America, Inc. or any of their respective affiliates,
except to the extent described below.)

     THIS CERTIFIES THAT                                                             
is the registered owner of                                                                         
               
 DOLLARS ($                    ), nonassessable,
fully-paid, fractional undivided ownership interest in Nissan Auto
Receivables ___ Owner Trust
(the “Trust”) formed by NARC II.

     The Trust was created pursuant to a Trust Agreement, dated as of November 22, 2005 (as amended
and supplemented from time to time, including the Amended and Restated Trust Agreement, dated as of
___, 200_, the “Trust Agreement”), between NARC II, as depositor (the “Depositor”), and
Wilmington Trust Company, as owner trustee (the “Owner Trustee”), a summary of certain of the
pertinent provisions of which is set forth below. Capitalized terms used herein and not otherwise
defined have the meanings assigned to such terms in the Trust Agreement, the Indenture, dated as of
___, 200___ (the “Indenture”), between the Trust and Wells Fargo Bank, National Association, as
indenture trustee (the “Indenture Trustee”), or in the Sale and Servicing Agreement, dated as of
___, 200___(the “Sale and Servicing Agreement”), among the Trust, the Depositor and NMAC, as
servicer (the “Servicer”), as applicable.

     This Certificate is one of the duly authorized Certificates designated as “Asset Backed
Certificates” (the “Certificates”) issued pursuant to the Trust Agreement. Certain debt
instruments evidencing obligations of the Trust have been issued under the Indenture, consisting of
four classes of Notes designated as “Class A-1 ___% Asset Backed Notes”, “Class A-2 ___%
Asset Backed Notes,” “Class A-3 ___% Asset Backed Notes” and “Class A-4 ___% Asset Backed
Notes” (collectively, the “Notes”). This Certificate is issued under and is subject to the terms,
provisions and conditions of the Trust Agreement to which Trust Agreement the holder of this
Certificate by virtue of the acceptance hereof assents and by which such holder is bound. The
property of the Trust includes a pool of retail installment sale contracts secured by new, near-new
and used automobiles and light-duty trucks (the “Receivables”), all monies received after the
Cut-off Date, security interests in the vehicles financed thereby, certain bank accounts and the
proceeds thereof, proceeds from claims on certain insurance policies and certain

(Nissan _____ Amended and

Restated Trust Agreement)

A-2

 

other rights under the Trust Agreement and the Sale and Servicing Agreement and all proceeds
of the foregoing.

     Under the Trust Agreement, there will be distributed on the 15th day of each month or, if such
15th day is not a Business Day, the next Business Day, (each, a “Distribution Date”), commencing on
___, 200___ to the person in whose name this Certificate is registered at the close of business
on the related Record Date, such Certificateholder’s pro rata portion of the amounts to be
distributed to Holders of the Certificates on such Distribution Date in respect of amounts
distributable to the Certificateholders of the Certificates pursuant to Section 5.06 of the Sale
and Servicing Agreement.

     The holder of this Certificate acknowledges and agrees that its rights to receive
distributions in respect of this Certificate are subordinated to the rights of the Noteholders [and
the Swap Counterparty] as described in the Sale and Servicing Agreement and the Indenture.

     The holder of this Certificate acknowledges and agrees that certain distributions made
pursuant to Section 5.06 of the Sale and Servicing Agreement to the Certificateholders may be made
in Japanese yen in the event the Issuer enters into a currency Swap Agreement as contemplated by
Section 5.11 of the Sale and Servicing Agreement. If any such election is made, an amendment to
the Sale and Servicing Agreement must be executed pursuant to Section 10.01 of the Sale and
Servicing Agreement subject to the approvals of such parties as set forth in Section 5.11 of the
Sale and Servicing Agreement, and a supplemental Indenture must be executed pursuant to and subject
to the approvals of such parties as set forth in Section 9.01 of the Indenture. In connection with
the execution of any such Swap Agreement, the Certificateholders must provide alternative
appropriate payment instructions to the Owner Trustee and the Indenture Trustee for the receipt of
any payment in Japanese yen.

     It is the intent of the Depositor, NMAC and the Certificateholders that, for purposes of
federal income tax, state and local income tax, any state single business tax and any other income
taxes, the Trust will be treated as a division or branch of the Person holding the beneficial
ownership interests in the Trust for any period during which the beneficial ownership interests in
the Trust are held by one person, and will be treated as a partnership, and the Certificateholders
will be treated as partners in that partnership, for any period during which the beneficial
ownership interests in the Trust are held by more than one person. For any such period during
which the beneficial ownership interests in the Trust are held by more than one person, each
Certificateholder, by acceptance of a Certificate or any beneficial interest on a Certificate,
agrees to treat, and to take no action inconsistent with the treatment of, the Certificates as
partnership interests in the Trust for such tax purposes.

     Each Certificateholder, by its acceptance of a Certificate or any beneficial interest in a
Certificate, covenants and agrees that such Certificateholder will not at any time institute
against the Depositor or the Trust, or join in any institution against the Depositor or the Trust
of, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other
proceedings under any United States, federal or state bankruptcy or similar law in connection with
any obligations relating to the Certificates, the Notes, the Trust Agreement or any of the Basic
Documents.

(Nissan _____ Amended and

Restated Trust Agreement)

A-3

 

     Distributions on this Certificate will be made as provided in the Trust Agreement by the
Paying Agent by wire transfer or check mailed to each Certificateholder of record without the
presentation or surrender of this Certificate or the making of any notation hereon. Except as
otherwise provided in the Trust Agreement and notwithstanding the above, the final distribution on
this Certificate will be made after due notice by the Owner Trustee of the pendency of such
distribution and only upon presentation and surrender of this Certificate at the office or agency
of the Paying Agent maintained for the purpose by the Owner Trustee in the Borough of Manhattan,
The City of New York.

     Reference is hereby made to the further provisions of this Certificate set forth on the
reverse hereof, which further provisions shall for all purposes have the same effect as if set
forth at this place.

     Unless the certificate of authentication hereon shall have been executed by an authorized
officer of the Owner Trustee or an authenticating agent, by manual or facsimile signature, this
Certificate shall not entitle the holder hereof to any benefit under the Trust Agreement or the
Sale and Servicing Agreement or be valid for any purpose.

     THIS CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE
OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

(Nissan _____ Amended and

Restated Trust Agreement)

A-4

 

     IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Trust and not in its individual
capacity, has caused this Certificate to be duly executed.

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	NISSAN AUTO RECEIVABLES _________ 

OWNER TRUST
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	By:
	 	WILMINGTON TRUST COMPANY,
	 

	 	 	 	 	 	 	 	not in its individual capacity but solely as

Owner Trustee
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Authorized Signatory

(Nissan _____ Amended and

Restated Trust Agreement)

A-5

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Certificates referred to in the within-mentioned Trust Agreement.

	 	 	 	 	 
	 	 	WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as

Owner Trustee
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	 	 	Authorized Signatory

(Nissan _____ Amended and

Restated Trust Agreement)

A-6

 

(REVERSE OF CERTIFICATE)

     The Certificates do not represent an obligation of, or an interest in, the Owner Trustee,
NMAC, NARC II, Nissan North America, Inc. or any of their Affiliates and no recourse may be had
against such parties or their assets, except as may be expressly set forth or contemplated herein
or in the Trust Agreement or the Basic Documents. In addition, this Certificate is not guaranteed
by any governmental agency or instrumentality and is limited in right of payment to certain
collections with respect to the Receivables (and certain other amounts), all as more specifically
set forth in the Trust Agreement and in the Sale and Servicing Agreement. A copy of each of the
Sale and Servicing Agreement and the Trust Agreement may be examined during normal business hours
at the principal office of the Depositor, and at such other places, if any, designated by the
Depositor, by any Certificateholder upon written request.

     The Trust Agreement permits, with certain exceptions therein provided, the amendment thereof
and the modification of the rights and obligations of the Depositor and the rights of the
Certificateholders under the Trust Agreement at any time by the Depositor and the Owner Trustee,
with the consent of the Holders of the Notes representing a majority of the Outstanding Amount of
the Notes, or, if all of the Notes have been paid in full, with the consent of the Holders of the
Certificates representing a majority of the Certificate Balance (excluding, in each case,
Securities held by NARC II, NMAC or any of their Affiliates unless at such time all Notes or
Certificates, as the case may be, are then owned by NARC II, NMAC and their Affiliates). Any such
consent by the holder of this Certificate shall be conclusive and binding on such holder and on all
future holders of this Certificate and of any Certificate issued upon the transfer hereof or in
exchange herefor or in lieu hereof whether or not notation of such consent is made upon this
Certificate or such replacement certificate. The Trust Agreement also permits the amendment
thereof, in certain limited circumstances, without the consent of the Holders of the Certificates
or the Notes.

     As provided in the Trust Agreement, and subject to certain limitations therein set forth, the
transfer of this Certificate is registerable in the Certificate Register upon surrender of this
Certificate for registration of transfer at the offices or agencies of the Certificate Registrar
maintained by the Owner Trustee, accompanied by a written instrument of transfer in form
satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the holder hereof
or such holder’s attorney duly authorized in writing, and thereupon one or more new Certificates of
authorized denominations evidencing the same aggregate interest in the Trust will be issued to the
designated transferee or transferees. The initial Certificate Registrar appointed under the Trust
Agreement is Wilmington Trust Company, Rodney Square North, 1100 North Market Street, Wilmington,
Delaware 19890.

     The Certificates are issuable only as registered Certificates without coupons in denominations
of $25,000.00 and in integral multiples of $1,000.00 in excess thereof. As provided in the Trust
Agreement and subject to certain limitations therein set forth, Certificates are exchangeable for
new Certificates of authorized denominations evidencing the same aggregate denomination, as
requested by the holder surrendering the same. No service charge will be made for any such
registration of transfer or exchange, but the Owner Trustee or the

(Nissan _____ Amended and

Restated Trust Agreement)

A-7

 

Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental
charge payable in connection therewith.

     The Owner Trustee, the Certificate Registrar and any agent of the Owner Trustee or the
Certificate Registrar may treat the person in whose name this Certificate is registered as the
owner hereof for all purposes and none of the Owner Trustee, the Certificate Registrar or any such
agent shall be affected by any notice to the contrary.

     The obligations and responsibilities created by the Trust Agreement and the Trust created
thereby shall terminate upon the earliest of (i) the maturity or other liquidation of the last
Receivable (or other asset) in the Owner Trust Estate and the final distribution of all moneys or
other property or proceeds of the Owner Trust Estate in accordance with the terms of the Trust
Agreement, the Indenture and the Sale and Servicing Agreement (including, but not limited to, any
property and proceeds to be deposited in the Collection Account pursuant to the terms of the Sale
and Servicing Agreement or to be released by the Indenture Trustee from the Lien of the Indenture
pursuant to the terms of the Indenture, and (ii) the election by NMAC, as servicer of the
Receivables under the Sale and Servicing Agreement, or any successor servicer, to purchase the
corpus of the Trust pursuant to Section 9.01 of the Sale and Servicing Agreement and the payment or
distribution to all Securityholders [and the Swap Counterparty] of all amounts required to be paid
to them under the Indenture and the Trust Agreement; provided, however, such right of purchase by
the servicer is exercisable only after the last day of the Collection Period as of which the Pool
Balance is less than or equal to 5% of the Original Pool Balance.

(Nissan _____ Amended and

Restated Trust Agreement)

A-8

 

ASSIGNMENT

FOR VALUE RECEIVED the undersigned hereby sells, assigns and transfers unto

PLEASE INSERT SOCIAL SECURITY

OR OTHER IDENTIFYING NUMBER

OF ASSIGNEE

 

(Please print or type name and address, including postal zip code, of assignee)

 

the within Certificate, and all rights thereunder, hereby irrevocably constituting and appointing

	 	 	 
	 

	 	Attorney to
	 transfer
said Certificate on the books of the Certificate Registrar, with full
power of substitution in the premises.

Dated:                     

	 	 	 	 	 
	 

	 	 	 	*/
	 

	 	 	 	 
	 

	 	 	 	Signature Guaranteed:
	 
	 	 	 	 
	 

	 	 	 	*/
	 

	 	 	 	 

 

			
	*/	 	 NOTICE: The signature to this assignment must correspond with the name as it appears upon the
face of the within Certificate in every particular, without alteration, enlargement or any change
whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange or a
commercial bank or trust company.

(Nissan _____ Amended and

Restated Trust Agreement)

A-9

 

EXHIBIT B

FORM OF TRANSFEREE REPRESENTATION LETTER

Nissan
Auto Receivables ___ Owner Trust

c/o WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner Trustee

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Nissan Auto Receivables ___ Owner Trust

WILMINGTON TRUST COMPANY,

as Certificate Registrar

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Nissan Auto Receivables ___ Owner Trust

Attention: Corporate Trust Services — Nissan Auto Receivables _______ Owner Trust

                    Re: Transfer of Nissan Auto Receivables ___Owner Trust Certificates, 
(the “Certificates”)

Ladies and Gentlemen:

     This letter is delivered pursuant to Section 3.03 of the Amended and Restated Trust Agreement,
dated as of ___, 200___ (the “Trust Agreement”), between Nissan Auto Receivables Corporation II,
as Depositor, and Wilmington Trust Company, as Owner Trustee (the “Owner Trustee”), in connection
with the transfer by                                          (the “Seller”) to the undersigned (the “Purchaser”)
of $                                         balance of the Certificates. Capitalized terms used and not
otherwise defined herein have the meanings assigned to such terms in the Trust Agreement.

     In connection with such transfer, the undersigned hereby represents and warrants to you and
the addressees hereof as follows:

     o I am not a Non-U.S. Person as defined in the Trust Agreement;

     o I am not the Depositor and I received beneficial and record ownership of Certificates
representing less than 100% of the Certificate Balance, and the transfer restrictions set forth in
Section 3.09 of the Trust Agreement do not apply to this transfer of Certificates; and

(Nissan _____ Amended and

Restated Trust Agreement)

B-1

 

     o I am not (i) an “employee benefit plan” as defined in Section 3(3) of the Employee
Retirement Income Security Act of 1974, as amended (“ERISA”), which is subject to the provisions of
Title I of ERISA, (ii) a “plan” described in Section 4975(e)(1) of the Internal Revenue Code of
1986, as amended (the “Code”), (iii) an entity whose underlying assets include “plan assets” by
reason of an employee benefit plan’s or plan’s investment in the entity, or (iv) any other employee
benefit plan that is subject to a law that is similar to Title I of ERISA or Section 4975 of the
Code.

[Signature appears on next page]

(Nissan _____ Amended and

Restated Trust Agreement)

B-2

 

     IN WITNESS WHEREOF, the Purchaser hereby executes this Transferee Representation Letter on the
___ day of                     .

	 	 	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 	 	 
	 

	 	 	 	 	,	 
	 	 	 	 	 
	 	 	The Purchaser
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:

	 

	 	 	 	Title:

(Nissan _____ Amended and

Restated Trust Agreement)

B-3

 

EXHIBIT C

FORM OF TRANSFEROR REPRESENTATION LETTER

Nissan
Auto Receivables ___ Owner Trust

c/o WILMINGTON TRUST COMPANY,

not in its individual capacity but solely as Owner Trustee

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Nissan Auto Receivables ___ Owner Trust

WILMINGTON TRUST COMPANY,

as Certificate Registrar

Rodney Square North

1100 North Market Street

Wilmington, Delaware 19890

Attention: Nissan Auto Receivables ___ Owner Trust

Attention: Corporate Trust Services — Nissan Auto Receivables ______ Owner Trust

                    Re:
Transfer of Nissan Auto Receivables ___ Owner Trust Certificates, 
(the “Certificates”)

Ladies and Gentlemen:

     This letter is delivered pursuant to Section 3.03 of the Amended and Restated Trust Agreement,
dated as of ___, 200___ (the “Trust Agreement”), between Nissan Auto Receivables Corporation II,
as Depositor, and Wilmington Trust Company, as Owner Trustee (the “Owner Trustee”), in connection
with the transfer by                                          (the “Purchaser”) to the undersigned (the
“Seller”) of
$                                         balance of the Certificates. Capitalized terms used and
not otherwise defined herein have the meanings ascribed thereto in the Trust Agreement. The
Transferor hereby certifies, represents and warrants to you, as Certificate Registrar, that:

     1. The Transferor is the lawful owner of the Transferred Certificates with the full
right to transfer such Certificates free from any and all claims and encumbrances
whatsoever.

     2. Neither the Transferor nor anyone acting on its behalf has (a) offered, transferred,
pledged, sold or otherwise disposed of any Transferred Certificate, any interest in any
Transferred Certificate or any other similar security to any person in any manner, (b)
solicited any offer to buy or accept a transfer, pledge or other disposition of

(Nissan _____ Amended and

Restated Trust Agreement)

C-1

 

any Transferred Certificate, any interest in any Transferred Certificate or any other
similar security from any person in any manner, (c) otherwise approached or negotiated with
respect to any Transferred Certificate, any interest in any Transferred Certificate or any
other similar security with any person in any manner, (d) made any general solicitation by
means of general advertising or in any other manner, or (e) taken any other action, which
(in the case of any of the acts described in clauses (a) through (e) hereof) would
constitute a distribution of any Transferred Certificate under the Securities Act of 1933,
as amended (the “Securities Act”), or would render the disposition of any Transferred
Certificate a violation of Section 5 of the Securities Act or any state securities laws, or
would require registration or qualification of any Transferred Certificate pursuant to the
Securities Act or any state securities laws.

	 	 	 	 	 
	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	 
	 	 	(Transferor)
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	 	 	 
	 

	 	Title:	 	 
	 

	 	 	 	 

(Nissan _____ Amended and

Restated Trust Agreement)

C-2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00119-of-00352.parquet"}]]