Document:

Exhibit 4.1

	 
	
      FORM OF FIXED RATE SENIOR NOTE
        
	
REGISTERED
        	 
        	 REGISTERED
        
	
No. FXR-1
        	 
        	 U.S. $
        
	 

        	 
        	 CUSIP:
        

     Unless
this certificate is presented by an authorized representative of The Depository
Trust Company (55 Water Street, New York, New York) to the issuer or its agent
for registration  of transfer, exchange or payment, and any certificate issued
is registered in the name of Cede & Co. or such other name as requested by
an authorized representative of The Depository Trust Company and any payment
is made to Cede & Co., ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON
IS WRONGFUL since the registered owner hereof, Cede & Co., has an interest
herein.

  MORGAN STANLEY

SENIOR GLOBAL MEDIUM-TERM NOTE, SERIES F 

PERFORMANCE LEVERAGED UPSIDE SECURITIES (“PLUS”)

     PLUS DUE JULY 20, 2007 

MANDATORILY EXCHANGEABLE 

FOR AN AMOUNT PAYABLE IN U.S. DOLLARS 

BASED ON THE VALUE OF THE S&P 500® INDEX

	ORIGINAL
    ISSUE DATE:
	INITIAL
    REDEMPTION 

    DATE: N/A
	 INTEREST
    RATE: None 
	MATURITY
          DATE: See “Maturity
    Date” below.

	 INTEREST
    ACCRUAL 

    DATE: N/A 
	INITIAL
    REDEMPTION PERCENTAGE: N/A
	 INTEREST
    PAYMENT 

DATE(S): N/A
	OPTIONAL
    REPAYMENT DATE(S): N/A

	 SPECIFIED
    CURRENCY: 

    U.S. dollars
	 ANNUAL
    REDEMPTION PERCENTAGE REDUCTION: N/A
	 INTEREST
    PAYMENT PERIOD: N/A 
	APPLICABILITY
          OF MODIFIED PAYMENT
          UPON ACCELERATION OR REDEMPTION: See “Alternate Exchange Calculation
    in Case of an Event of Default” below.

	IF
          SPECIFIED CURRENCY
    OTHER THAN U.S. DOLLARS, OPTION TO ELECT PAYMENT IN U.S. DOLLARS: N/A
	 REDEMPTION
    NOTICE PERIOD: N/A
	APPLICABILITY
          OF ANNUAL INTEREST PAYMENTS:
    N/A
	 If
    yes, state Issue Price: N/A

	EXCHANGE
    RATE

    AGENT: N/A
	 TAX
          REDEMPTION AND PAYMENT OF ADDITIONAL
    AMOUNTS: NO
	PRICE
          APPLICABLE UPON OPTIONAL REPAYMENT:
    N/A 
	 ORIGINAL
    YIELD TO MATURITY: N/A

	OTHER
    PROVISIONS: 

    See below.
	 IF
          YES, STATE INITIAL OFFERING
    DATE: N/A
	 	 

	 Stated Principal Amount 	  	 $10 per PLUS 
	 	 	 
	 Underlying Index 	  	 S&P 500® Index 
	 	 	 
	 Underlying Index Publisher 	  	 Standard & Poor’s Corporation 
	 	 	 
	 Initial Index Value 	  	  
	 	 	 
	 Pricing Date 	  	  
	 	 	 
	 Denominations 	  	 $10 and integral multiples thereof 
	 	 	 
	 Bull Market or Bear Market PLUS 	  	 Bull Market PLUS 

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	Maximum Payment at Maturity	 	$
	 	 	 
	Minimum Payment at Maturity if Bear Market PLUS
	 	N/A
	 	 	         %
	Leverage Factor	 	 
	 	 	 
	Index Valuation Date	 	July 18, 2007; provided that if there is a Market Disruption Event on the scheduled Index Valuation Date or if the scheduled Index Valuation Date is not otherwise an Index Business Day, the Index Valuation Date shall be the immediately succeeding Index Business Day during which no Market Disruption Event shall have occurred. See “Maturity Date.” 
	 	 	 
	Maturity Date	 	July 20, 2007,
                   subject to extension if the scheduled Index Valuation Date
                   is postponed in accordance with the definition thereof. If
                   the Index Valuation Date is postponed so that it falls less
                   than two scheduled Index Business Days prior to the scheduled
                   Maturity Date, the Maturity Date shall be the second scheduled
                   Index Business Day following the Index Valuation Date as postponed.
                   See “Index Valuation
               Date.”

         In the event that the
                   Maturity Date of the PLUS is postponed due to postponement
                   of the Index Valuation Date as described in the immediately
                   preceding paragraph, the Issuer shall give notice of such
                   postponement and, once it has been determined, of the date
                   to which the Maturity Date has been rescheduled (i) to the
                   holder of this PLUS by mailing notice of such postponement
                   by first class mail, postage prepaid, to the holder’s last address as it shall appear upon the registry books, (ii) to the Trustee by telephone or facsimile confirmed by mailing such notice to the Trustee by first class mail, postage prepaid, at its New York office and (iii) to The Depository Trust Company (the “Depositary”)
                    by telephone or facsimile confirmed by mailing such notice to
                    the Depositary by first class mail, postage prepaid. Any notice
                    that is mailed in the manner herein provided shall be conclusively
                    presumed to have been duly given, whether or not the holder of
                    this PLUS receives the notice. The Issuer shall give such notice
                    as promptly as possible, and in no case later than (i) with respect
                    to notice of postponement of the Maturity Date, the Business Day
                    immediately following the scheduled Index Valuation Date, and
          (ii) with respect to notice of the date to 

	 	 	 

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		  	which the Maturity Date has been rescheduled, the Business Day immediately following the actual Index Valuation Date for determining the Final Index Value (as defined below).
        
	 	 	 
	Payment at Maturity
        
	  	At maturity, upon delivery of this PLUS to the Trustee, the Issuer shall pay with respect to each Stated Principal Amount of this PLUS an amount in cash equal to:

        1. For a Bull Market PLUS, (i) if the Final Index Value is greater than the Initial Index Value, the lesser of (a) the Stated Principal Amount plus the Leveraged Upside Payment and (b) the Maximum Payment at Maturity or (ii) if the Final Index Value is less than or equal to the Initial Index Value, the Stated Principal Amount times the Index Performance Factor, subject to the Minimum Payment at Maturity.

         2. For a Bear Market PLUS, (i) if the Final Index Value is less than the Initial Index Value, the lesser of (a) the Stated Principal Amount plus the Enhanced Downside Payment and (b) the Maximum Payment at Maturity or (ii) if the Final Index Value is greater than or equal to the Initial Index Value, the Stated Principal Amount minus the Upside Reduction Amount, subject to the Minimum Payment at Maturity. 

         The Issuer shall, or shall cause the Calculation Agent to, (i) provide written notice to the Trustee and to the Depositary of the amount of cash to be delivered with respect to each Stated Principal Amount of this PLUS, on or prior to 10:30 a.m. on the Trading Day preceding the Maturity Date (but if such Trading Day is not a Business Day, prior to the close of business on the Business Day preceding the Maturity Date), and (ii) deliver the aggregate cash amount due with respect to this PLUS to the Trustee for delivery to the holder of this PLUS on the Maturity Date. 

	 	 	 
	Applicable only for BULL MARKET PLUS
	 	 	 
	Leveraged Upside Payment 	 	 The product of (i) the Stated Principal Amount and (ii) the Leverage Factor and (iii) the Index Percent Increase. 
	 	 	 
	Index Performance Factor	 	A fraction, the numerator of which shall be the Final Index Value and the denominator of which shall be the Initial Index Value.
	 	 	 

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	Applicable only for BEAR MARKET PLUS
	 	 	 
	Enhanced Downside Payment	  	 The product of (i) the Stated Principal Amount and (ii) the Leverage Factor and (iii) the Index Percent Decrease.
	 	 	 
	Upside Reduction Amount	  	 The product of (i) the Stated Principal Amount and (ii) the Index Percent Increase.
	 	 	 
	Index Percent Decrease	 	 A fraction, the numerator of which shall be the Initial Index Value minus the Final Index Value and the denominator of which shall be the Initial Index Value.
	 
	Applicable for all PLUS
	 	 	 
	Index Percent Increase	  	 A fraction, the numerator of which shall be the Final Index Value minus the Initial Index Value and the denominator of which shall be the Initial Index Value.
	 	 	 
	Final Index Value	 	 The Index Closing Value of the Underlying Index on the Index Valuation Date.
	 	 	 
	Index Closing Value	  	 The Index Closing Value on any Index Business Day shall equal the closing value of the Underlying Index or any Successor Index (as defined under “Discontinuance of the Underlying Index; Alteration of Method of Calculation” below) published at the regular weekday close of trading on that Index Business Day, as determined by the Calculation Agent. In certain circumstances, the Index Closing Value shall be based on the alternate calculation of the Underlying Index described under “Discontinuance of the Underlying Index; Alteration of Method of Calculation.”
	 	 	 
	Trading Day	 	 A day, as determined by the Calculation Agent,
        on which trading is generally conducted on the New York Stock Exchange, Inc. (“NYSE”), the American Stock Exchange LLC (“AMEX”), the Nasdaq National Market, the Chicago Mercantile Exchange, the Chicago Board of Options Exchange and in the over- the-counter market for equity securities in the United States.
	 	 	 
	Index Business Day	 	 A day, as determined by the Calculation Agent, on which trading is generally conducted on the Relevant Exchange and on any exchange on which futures or options contracts related to the Underlying Index (or Successor Index) are traded, other than a day on which

 

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	 	 	trading on such exchange is scheduled to close prior to its regular final weekday closing price.
	 	 	 
	Relevant Exchange	 	Relevant Exchange means the primary exchange(s) or market(s) of trading for (i) any security (or any combination thereof) then included in the Underlying Index or any Successor Index and (ii) any futures or options contracts related to such Underlying Index or to any security then included in the Underlying Index. 
	 	 	 
	Calculation Agent	 	Morgan Stanley & Co. Incorporated and its successors (“MS & Co.”). 

         All determinations made by the Calculation Agent shall be at the sole discretion of the Calculation Agent and shall, in the absence of manifest error, be conclusive for all purposes and binding on the holder of this PLUS, the Trustee and the Issuer. 

         All calculations with respect to the Payment at Maturity shall be rounded to the nearest one hundred-thousandth, with five one-millionths rounded upward (e.g., .876545 would be rounded to .87655); all dollar amounts related to determination of the amount of cash payable for each Stated Principal Amount of this PLUS shall be rounded to the nearest ten-thousandth, with five one hundred-thousandths rounded upward (e.g., .76545 would be rounded up to .7655); and all dollar amounts paid on the aggregate number of PLUS shall be rounded to the nearest cent, with one-half cent rounded upward.

	 	 	 
	Market Disruption Event	 	Market Disruption Event means, with respect to the Underlying Index: 

         (i) the occurrence or existence of a suspension, absence or material limitation of trading of stocks then constituting 20 percent or more of the level of the Underlying Index (or the Successor Index) on the Relevant Exchanges for such securities for more than two hours of trading or during the one-half hour period preceding the close of the principal trading session on such Relevant Exchange; or a breakdown or failure in the price and trade reporting systems of any Relevant Exchange as a result of which the reported trading prices for stocks then constituting 20 percent or more of the level of the Underlying Index (or the Successor

	 	 	 

 

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	 	 	Index) during the last one-half hour preceding the close of the principal trading session on such Relevant Exchange are materially inaccurate; or the suspension, material limitation or absence of trading on any major U.S. securities market for trading in futures or options contracts or exchange traded funds related to the Underlying Index (or the Successor Index) for more than two hours of trading or during the one-half hour period preceding the close of the principal trading session on such market, in each case as determined by the Calculation Agent in its sole discretion; and 

         (ii) a determination by the Calculation Agent in its sole discretion that any event described in clause (i) above materially interfered with the ability of the Issuer or any of its affiliates to unwind or adjust all or a material portion of the hedge position with respect to this issuance of PLUS. 

         For the purpose of determining whether a Market Disruption Event exists at any time, if trading in a security included in the Underlying Index is materially suspended or materially limited at that time, then the relevant percentage contribution of that security to the level of the Underlying Index shall be based on a comparison of (x) the portion of the value of the Underlying Index attributable to that security relative to (y) the overall value of the Underlying Index, in each case immediately before that suspension or limitation. 

         For the purpose of determining whether a Market Disruption Event has occurred: (1) a limitation on the hours or number of days of trading shall not constitute a Market Disruption Event if it results from an announced change in the regular business hours of the relevant exchange or market, (2) a decision to permanently discontinue trading in the relevant futures or options contract or exchange traded fund shall not constitute a Market Disruption Event, (3) limitations pursuant to the rules of any Relevant Exchange similar to NYSE Rule 80A (or any applicable rule or regulation enacted or promulgated by any other self-regulatory organization or any government agency of scope similar to NYSE Rule 80A as determined by the Calculation Agent) on trading during significant market fluctuations shall constitute a suspension,

	 	 	 

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	 	 	absence or material limitation of trading, (4) a suspension of trading in futures or options contracts on the Underlying Index by the primary securities market trading in such contracts by reason of (a) a price change exceeding limits set by such securities exchange or market, (b) an imbalance of orders relating to such contracts or (c) a disparity in bid and ask quotes relating to such contracts shall constitute a suspension, absence or material limitation of trading in futures or options contracts related to the Underlying Index and (5) a “suspension, absence or material limitation of trading” on any Relevant Exchange or on the primary market on which futures or options contracts related to the Underlying Index are traded shall not include any time when such securities market is itself closed for trading under ordinary circumstances.
	 	 	 
	Alternate Exchange Calculation
          in 	 	 
	   Case of an Event
              of Default	 	In case an event of default with respect to the PLUS shall have occurred and be continuing, the amount declared due and payable for each Stated Principal Amount of this PLUS upon any acceleration of this PLUS shall be determined by the Calculation Agent and shall be an amount in cash equal to the Payment at Maturity calculated using the Index Closing Value as of the date of such acceleration as the Final Index Value plus, if applicable, any accrued but unpaid interest as of the date of such acceleration. 

         If the maturity of the PLUS is accelerated because of an event of default as described above, the Issuer shall, or shall cause the Calculation Agent to, provide written notice to the Trustee at its New York office, on which notice the Trustee may conclusively rely, and to the Depositary of the cash amount due with respect to each Stated Principal Amount of this PLUS as promptly as possible and in no event later than two Business Days after the date of acceleration. 

	 	 	 
	Discontinuance of the Underlying
          Index; 	 	 
	    Alteration
          of Method of Calculation
	 	If the Underlying Index Publisher discontinues publication of the Underlying Index and the Underlying Index Publisher or another entity (including MS & Co.) publishes a successor or
	 	 	 

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	 	 	substitute index that the Calculation Agent determines, in its sole discretion, to be comparable to the discontinued Underlying Index (such index being referred to herein as a “Successor Index”), then any subsequent Index Closing Value shall be determined by reference to the published value of such Successor Index at the regular weekday close of trading on the Index Business Day that any Index Closing Value is to be determined. 

         Upon any selection by the Calculation Agent of a Successor Index, the Calculation Agent shall cause written notice thereof to be furnished to the Trustee, to the Issuer and to the Depositary, as holder of the PLUS, within three Trading Days of such selection.

         If the Underlying Index Publisher discontinues publication of the Underlying Index prior to, and such discontinuance is continuing on, the Index Valuation Date or the date of acceleration and the Calculation Agent determines, in its sole discretion, that no Successor Index is available at such time, then the Calculation Agent shall determine the Index Closing Value for such date. The Index Closing Value shall be computed by the Calculation Agent in accordance with the formula for and method of calculating the Underlying Index last in effect prior to such discontinuance, using the closing price (or, if trading in the relevant securities has been materially suspended or materially limited, its good faith estimate of the closing price that would have prevailed but for such suspension or limitation) at the close of the principal trading session of the Relevant Exchange on such date of each security most recently constituting the
Underlying Index without any rebalancing or substitution of such securities following such discontinuance. 

         If at any time the method of calculating the Underlying Index or a Successor Index, or the value thereof, is changed in a material respect, or if the Underlying Index or a Successor Index is in any other way modified so that such index does not, in the opinion of the Calculation Agent, fairly represent the value of the Underlying Index or such Successor Index had such changes or modifications not been made, then, from and after such time, the Calculation Agent

	 	 	 

9

 

	 	 	 shall, at the close of business in New York City on each date on which the Index Closing Value is to be determined, make such calculations and adjustments as, in the good faith judgment of the Calculation Agent, may be necessary in order to arrive at a value of a stock index comparable to the Underlying Index or such Successor Index, as the case may be, as if such changes or modifications had not been made, and the Calculation Agent shall calculate the Final Index Value with reference to the Underlying Index or such Successor Index, as adjusted. Accordingly, if the method of calculating the Underlying Index or a Successor Index is modified so that the value of such index is a fraction of what it would have been if it had not been modified (e.g., due to a split in the index), then the Calculation Agent shall adjust such index in order to arrive at a value of the Underlying Index or such Successor Index as if it had not been modified (e.g.,
as if such split had not occurred). 
	 	 	 

 

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     Morgan Stanley, a Delaware corporation (together with its successors and assigns, the “Issuer”), for value received, hereby promises to pay to CEDE & Co., or registered assignees, the amount of cash, as determined in accordance with the provisions set forth under “Payment at Maturity” above, due with respect to the principal sum of U.S. $                (UNITED STATES DOLLARS                               ), on the Maturity Date specified above (except to the extent redeemed or repaid prior to maturity) and to pay interest thereon at the Interest Rate per annum specified above, from and including the Interest Accrual Date specified above until the principal hereof is paid or
duly made available for payment weekly, monthly, quarterly, semiannually or annually in arrears as specified above as the Interest Payment Period on each Interest Payment Date (as specified above), commencing on the Interest Payment Date next succeeding the Interest Accrual Date specified above, and at maturity (or on any redemption or repayment date); provided, however, that if the Interest Accrual Date occurs between a Record Date, as defined below, and the next succeeding Interest Payment Date, interest payments will commence on the second Interest Payment Date succeeding the Interest Accrual Date to the registered holder of this Note on the Record Date with respect to such second Interest Payment Date; and provided, further, that if this Note is subject to “Annual Interest Payments,” interest payments shall be made annually in arrears and the term “Interest Payment Date” shall be deemed to mean the first day of March in each year. 

      Interest on this Note will accrue from and including the most recent date to which interest has been paid or duly provided for, or, if no interest has been paid or duly provided for, from and including the Interest Accrual Date, until but excluding the date the principal hereof has been paid or duly made available for payment. The interest so payable, and punctually paid or duly provided for, on any Interest Payment Date will, subject to certain exceptions described herein, be paid to the person in whose name this Note (or one or more predecessor Notes) is registered at the close of business on the date 15 calendar days prior to such Interest Payment Date (whether or not a Business Day (as defined below)) (each such date, a “Record Date”); provided, however, that interest payable at maturity (or any redemption or repayment date) will be payable to the person to whom the principal hereof
shall be payable. As used herein, “Business Day” means any day, other than a Saturday or Sunday, (a) that is neither a legal holiday nor a day on which banking institutions are authorized or required by law or regulation to close (x) in The City of New York or (y) if this Note is denominated in a Specified Currency other than U.S. dollars, euro or Australian dollars, in the principal financial center of the country of the Specified Currency, or (z) if this Note is denominated in Australian dollars, in Sydney and (b) if this Note is denominated in euro, that is also a day on which the Trans-European Automated Real-time Gross Settlement Express Transfer System (“TARGET”) is operating (a “TARGET Settlement Day”). 

      Payment of the principal of this Note, any premium and the interest due at maturity (or any redemption or repayment date), unless this Note is denominated in a Specified Currency other than U.S. dollars and is to be paid in whole or in part in such Specified Currency, will be made in immediately available funds upon surrender of this Note at the office or agency of the Paying Agent, as defined on the reverse hereof, maintained for that purpose in the Borough of Manhattan, The City of New York, or at such other paying agency as the Issuer may determine, in U.S. dollars. U.S. dollar payments of interest, other than interest due at maturity or on any date of redemption or repayment, will be made by U.S. dollar check mailed to the address of the person entitled thereto as such address shall appear in the Note register. A holder of U.S.

11

  $10,000,000 (or the equivalent in a Specified Currency) or more in aggregate principal amount of Notes having the same Interest Payment Date, the interest on which is payable in U.S. dollars, shall be entitled to receive payments of interest, other than interest due at maturity or on any date of redemption or repayment, by wire transfer of immediately available funds if appropriate wire transfer instructions have been received by the Paying Agent in writing not less than 15 calendar days prior to the applicable Interest Payment Date. 

      If this Note is denominated in a Specified Currency other than U.S. dollars, and the holder does not elect (in whole or in part) to receive payment in U.S. dollars pursuant to the next succeeding paragraph, payments of interest, principal or any premium with regard to this Note will be made by wire transfer of immediately available funds to an account maintained by the holder hereof with a bank located outside the United States if appropriate wire transfer instructions have been received by the Paying Agent in writing, with respect to payments of interest, on or prior to the fifth Business Day after the applicable Record Date and, with respect to payments of principal or any premium, at least ten Business Days prior to the Maturity Date or any redemption or repayment date, as the case may be; provided that,
if payment of interest, principal or any premium with regard to this Note is payable in euro, the account must be a euro account in a country for which the euro is the lawful currency, provided, further, that if such wire transfer instructions are not received, such payments will be made by check payable in such Specified Currency mailed to the address of the person entitled thereto as such address shall appear in the Note register; and provided, further, that payment of the principal of this Note, any premium and the interest due at maturity (or on any redemption or repayment date) will be made upon surrender of this Note at the office or agency referred to in the preceding paragraph. 

      If so indicated on the face hereof, the holder of this Note, if denominated in a Specified Currency other than U.S. dollars, may elect to receive all or a portion of payments on this Note in U.S. dollars by transmitting a written request to the Paying Agent, on or prior to the fifth Business Day after such Record Date or at least ten Business Days prior to the Maturity Date or any redemption or repayment date, as the case may be. Such election shall remain in effect unless such request is revoked by written notice to the Paying Agent as to all or a portion of payments on this Note at least five Business Days prior to such Record Date, for payments of interest, or at least ten calendar days prior to the Maturity Date or any redemption or repayment date, for payments of principal, as the case may be. 

      If the holder elects to receive all or a portion of payments of principal of, premium, if any, and interest on this Note, if denominated in a Specified Currency other than U.S. dollars, in U.S. dollars, the Exchange Rate Agent (as defined on the reverse hereof) will convert such payments into U.S. dollars. In the event of such an election, payment in respect of this Note will be based upon the exchange rate as determined by the Exchange Rate Agent based on the highest bid quotation in The City of New York received by such Exchange Rate Agent at approximately 11:00 a.m., New York City time, on the second Business Day preceding the applicable payment date from three recognized foreign exchange dealers (one of which may be the Exchange Rate Agent unless such Exchange Rate Agent is an affiliate of the Issuer) for the purchase by the quoting dealer of the Specified Currency for U.S. dollars for settlement on such
payment date in the amount of the Specified Currency payable in the absence of such an election to such holder and at which the applicable dealer commits to execute a contract. If such bid quotations are not

12

  available, such payment will be made in the Specified Currency. All currency exchange costs will be borne by the holder of this Note by deductions from such payments. 

      Reference is hereby made to the further provisions of this Note 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 has been executed by the Trustee referred to on the reverse hereof by manual signature, this Note shall not be entitled to any benefit under the Senior Indenture, as defined on the reverse hereof, or be valid or obligatory for any purpose. 

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     IN WITNESS WHEREOF, the Issuer has caused this Note to be duly executed.

	 DATED: 	 	 MORGAN STANLEY 
	 	 	 	 	 
	 	 	By:	 
	 	 	 	

	 	 	 	Name:	 
	 	 	 	Title:	 

TRUSTEE’S CERTIFICATE

    OF AUTHENTICATION

  This is one of the Notes referred

    to in the within-mentioned

    Senior
Indenture.

  	 JPMORGAN CHASE
      BANK, N.A., 
	        as
      Trustee 
	 	 	 
	By:	 
	 	

	 	Authorized Officer 

 

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FORM OF REVERSE OF SECURITY

       This Note is one of a duly authorized issue of Senior Global Medium-Term Notes, Series F, having maturities more than nine months from the date of issue (the “Notes”) of the Issuer. The Notes are issuable under a Senior Indenture, dated as of November 1, 2004, between the Issuer and JPMorgan Chase Bank, N.A. (formerly known as JPMorgan Chase Bank), as Trustee (the “Trustee,” which term includes any successor trustee under the Senior Indenture) (as may be amended or supplemented from time to time, the “Senior Indenture”), to which Senior Indenture and all indentures supplemental thereto reference is hereby made for a statement of the
respective rights, limitations of rights, duties and immunities of the Issuer, the Trustee and holders of the Notes and the terms upon which the Notes are, and are to be, authenticated and delivered. The Issuer has appointed JPMorgan Chase Bank, N.A. at its corporate trust office in The City of New York as the paying agent (the “Paying Agent,” which term includes any additional or successor Paying Agent appointed by the Issuer) with respect to the Notes. The terms of individual Notes may vary with respect to interest rates, interest rate formulas, issue dates, maturity dates, or otherwise, all as provided in the Senior Indenture. To the extent not inconsistent herewith, the terms of the Senior Indenture are hereby incorporated by reference herein. 

      Unless otherwise indicated on the face hereof, this Note will not be subject to any sinking fund and, unless otherwise provided on the face hereof in accordance with the provisions of the following two paragraphs, will not be redeemable or subject to repayment at the option of the holder prior to maturity. 

        If
          so indicated on the face hereof, this Note may be redeemed in whole
          or in part at the option of the Issuer on or after the Initial Redemption
          Date specified on the face hereof on the terms set forth on the face
          hereof, together with interest accrued and unpaid hereon to the date
          of redemption. If this Note is subject to “Annual Redemption Percentage
          Reduction,” the Initial Redemption Percentage indicated on the
          face hereof will be reduced on each anniversary of the Initial Redemption
          Date by the Annual Redemption Percentage Reduction specified on the
          face hereof until the redemption price of this Note is 100% of the
          principal amount hereof, together with interest accrued and unpaid
          hereon to the date of redemption. If the face hereof indicates that
          this Note is subject to “Modified Payment upon Acceleration or
          Redemption”, the amount of principal payable upon redemption will
          be limited to the aggregate principal amount hereof multiplied by the
          sum of the Issue Price specified on the face hereof (expressed as a
          percentage of the aggregate principal amount) plus the original issue
          discount accrued from the Interest Accrual Date to the date of redemption
          (expressed as a percentage of the aggregate principal amount), with
          the amount of original issue discount accrued being calculated using
          a constant yield method (as described below). Notice of redemption
          shall be mailed to the registered holders of the Notes designated for
          redemption at their addresses as the same shall appear on the Note
          register not less than 30 nor more than 60 calendar days prior to the
          date fixed for redemption or within the Redemption Notice Period specified
          on the face hereof, subject to all the conditions and provisions of
          the Senior Indenture. In the event of redemption of this Note in part
          only, a new Note or Notes for the amount of the unredeemed portion
          hereof shall be issued in the name of the holder hereof upon the cancellation
          hereof. 

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     If so indicated on the face of this Note, this Note will be subject to repayment at the option of the holder on the Optional Repayment Date or Dates specified on the face hereof on the terms set forth herein. On any Optional Repayment Date, this Note will be repayable in whole or in part in increments of $1,000 or, if this Note is denominated in a Specified Currency other than U.S. dollars, in increments of 1,000 units of such Specified Currency (provided that any remaining principal amount hereof shall not be less than the minimum authorized denomination hereof) at the option of the holder hereof at a price equal to 100% of the principal amount to be repaid, together with interest accrued and unpaid hereon to the date of repayment, provided that if the face hereof indicates that this Note is subject to “Modified
Payment upon Acceleration or Redemption”, the amount of principal payable upon repayment will be limited to the aggregate principal amount hereof multiplied by the sum of the Issue Price specified on the face hereof (expressed as a percentage of the aggregate principal amount) plus the original issue discount accrued from the Interest Accrual Date to the date of repayment (expressed as a percentage of the aggregate principal amount), with the amount of original issue discount accrued being calculated using a constant yield method (as described below). For this Note to be repaid at the option of the holder hereof, the Paying Agent must receive at its corporate trust office in the Borough of Manhattan, The City of New York, at least 15 but not more than 30 calendar days prior to the date of repayment, (i) this Note with the form entitled “Option to Elect Repayment” below duly completed or (ii) a telegram, telex, facsimile transmission or a letter from a member of a national securities
exchange or the National Association of Securities Dealers, Inc. or a commercial bank or a trust company in the United States setting forth the name of the holder of this Note, the principal amount hereof, the certificate number of this Note or a description of this Note’s tenor and terms, the principal amount hereof to be repaid, a statement that the option to elect repayment is being exercised thereby and a guarantee that this Note, together with the form entitled “Option to Elect Repayment” duly completed, will be received by the Paying Agent not later than the fifth Business Day after the date of such telegram, telex, facsimile transmission or letter; provided, that such telegram, telex, facsimile transmission or letter shall only be effective if this Note and form duly completed are received by the Paying Agent by such fifth Business Day. Exercise of such repayment option by the holder hereof shall be irrevocable. In the event of repayment of this Note in part only, a new Note or Notes for the amount of the unpaid portion hereof shall be issued in the name of the holder hereof upon the cancellation hereof. 

      Interest payments on this Note will include interest accrued to but excluding the Interest Payment Dates or the Maturity Date (or any earlier redemption or repayment date), as the case may be. Unless otherwise provided on the face hereof, interest payments for this Note will be computed and paid on the basis of a 360-day year of twelve 30-day months. 

      In the case where the Interest Payment Date or the Maturity Date (or any redemption or repayment date) does not fall on a Business Day, payment of interest, premium, if any, or principal otherwise payable on such date need not be made on such date, but may be made on the next succeeding Business Day with the same force and effect as if made on the Interest Payment Date or on the Maturity Date (or any redemption or repayment date), and no interest on such payment shall accrue for the period from and after the Interest Payment Date or the Maturity Date (or any redemption or repayment date) to such next succeeding Business Day. 

16

     This Note and all the obligations of the Issuer hereunder are direct, unsecured obligations of the Issuer and rank without preference or priority among themselves and pari passu with all other existing and future unsecured and unsubordinated indebtedness of the Issuer, subject to certain statutory exceptions in the event of liquidation upon insolvency. 

      This Note, and any Note or Notes issued upon transfer or exchange hereof, is issuable only in fully registered form, without coupons, and, if denominated in U.S. dollars, unless otherwise stated above, is issuable only in denominations of U.S. $1,000 and any integral multiple of U.S. $1,000 in excess thereof. If this Note is denominated in a Specified Currency other than U.S. dollars, then, unless a higher minimum denomination is required by applicable law, it is issuable only in denominations of the equivalent of U.S. $1,000 (rounded to an integral multiple of 1,000 units of such Specified Currency), or any amount in excess thereof which is an integral multiple of 1,000 units of such Specified Currency, as determined by reference to the noon dollar buying rate in The City of New York for cable transfers of such Specified Currency published by the Federal Reserve Bank of New York (the
“Market Exchange Rate”) on the Business Day immediately preceding the date of issuance. 

      The Trustee has been appointed registrar for the Notes, and the Trustee will maintain at its office in The City of New York a register for the registration and transfer of Notes. This Note may be transferred at the aforesaid office of the Trustee by surrendering this Note for cancellation, accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee and duly executed by the registered holder hereof in person or by the holder’s attorney duly authorized in writing, and thereupon the Trustee shall issue in the name of the transferee or transferees, in exchange herefor, a new Note or Notes having identical terms and provisions and having a like aggregate principal amount in authorized denominations, subject to the terms and conditions set forth herein; provided, however, that the Trustee will not be required (i) to register the transfer of or exchange any Note that has been called for redemption in whole or in part, except the unredeemed portion of Notes being redeemed in part, (ii) to register the transfer of or exchange any Note if the holder thereof has exercised his right, if any, to require the Issuer to repurchase such Note in whole or in part, except the portion of such Note not required to be repurchased, or (iii) to register the transfer of or exchange Notes to the extent and during the period so provided in the Senior Indenture with respect to the redemption of Notes. Notes are exchangeable at said office for other Notes of other authorized denominations of equal aggregate principal amount having identical terms and provisions. All such exchanges and transfers of Notes will be free of charge, but the Issuer may require payment of a sum sufficient to cover any tax or other governmental charge in connection therewith. All Notes surrendered for
exchange shall be accompanied by a written instrument of transfer in form satisfactory to the Issuer and the Trustee and executed by the registered holder in person or by the holder’s attorney duly authorized in writing. The date of registration of any Note delivered upon any exchange or transfer of Notes shall be such that no gain or loss of interest results from such exchange or transfer. 

17

     In case this Note shall at any time become mutilated, defaced or be destroyed, lost or stolen and this Note or evidence of the loss, theft or destruction thereof (together with the indemnity hereinafter referred to and such other documents or proof as may be required in the premises) shall be delivered to the Trustee, the Issuer in its discretion may execute a new Note of like tenor in exchange for this Note, but, if this Note is destroyed, lost or stolen, only upon receipt of evidence satisfactory to the Trustee and the Issuer that this Note was destroyed or lost or stolen and, if required, upon receipt also of indemnity satisfactory to each of them. All expenses and reasonable charges associated with procuring such indemnity and with the preparation, authentication and delivery of a new Note shall be borne by the owner of the Note mutilated, defaced, destroyed, lost or stolen. 

      The Senior Indenture provides that (a) if an Event of Default (as defined in the Senior Indenture) due to the default in payment of principal of, premium, if any, or interest on, any series of debt securities issued under the Senior Indenture, including the series of Senior Medium-Term Notes of which this Note forms a part, or due to the default in the performance or breach of any other covenant or warranty of the Issuer applicable to the debt securities of such series but not applicable to all outstanding debt securities issued under the Senior Indenture shall have occurred and be continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of the outstanding debt securities of each affected series, voting as one class, by notice in writing to the Issuer and to the Trustee, if given by the securityholders, may then declare the principal of all debt securities of all such
series and interest accrued thereon to be due and payable immediately and (b) if an Event of Default due to a default in the performance of any other of the covenants or agreements in the Senior Indenture applicable to all outstanding debt securities issued thereunder, including this Note, or due to certain events of bankruptcy, insolvency or reorganization of the Issuer, shall have occurred and be continuing, either the Trustee or the holders of not less than 25% in aggregate principal amount of all outstanding debt securities issued under the Senior Indenture, voting as one class, by notice in writing to the Issuer and to the Trustee, if given by the securityholders, may declare the principal of all such debt securities and interest accrued thereon to be due and payable immediately, but upon certain conditions such declarations may be annulled and past defaults may be waived (except a continuing default in payment of principal or premium, if any, or interest on such debt securities) by the holders
of a majority in aggregate principal amount of the debt securities of all affected series then outstanding. 

       If the face hereof indicates that this Note is subject to “Modified Payment upon Acceleration or Redemption,” then (i) if the principal hereof is declared to be due and payable as described in the preceding paragraph, the amount of principal due and payable with respect to this Note shall be limited to the aggregate principal amount hereof multiplied by the sum of the Issue Price specified on the face hereof (expressed as a percentage of the aggregate principal amount) plus the original issue discount accrued from the Interest Accrual Date to the date of declaration (expressed as a percentage of the aggregate principal amount), with the amount of original issue discount accrued being calculated using a constant yield method (as described in the next paragraph), (ii) for the purpose of any vote of securityholders taken pursuant to the Senior Indenture
prior to the acceleration of payment of this Note, the principal amount hereof shall equal the amount that would be due and payable hereon, calculated as set forth in clause (i) above, if this Note were declared to be due and payable on the date of any such vote and (iii) for 

18

  the purpose of any vote of securityholders taken pursuant to the Senior Indenture following the acceleration of payment of this Note, the principal amount hereof shall equal the amount of principal due and payable with respect to this Note, calculated as set forth in clause (i) above. 

       The constant yield shall be calculated using a 30-day month, 360-day year convention, a compounding period that, except for the initial period (as defined below), corresponds to the shortest period between Interest Payment Dates (with ratable accruals within a compounding period), and an assumption that the maturity will not be accelerated. If the period from the Original Issue Date to the first Interest Payment Date (the “initial period”) is shorter than the compounding period for this Note, a proportionate amount of the yield for an entire compounding period will be accrued. If the initial period is longer than the compounding period, then the period will be divided into a regular compounding period and a short period with the short period being treated as provided in the preceding sentence. 

       If the face hereof indicates that this Note is subject to “Tax Redemption and Payment of Additional Amounts,” this Note may be redeemed, as a whole, at the option of the Issuer at any time prior to maturity, upon the giving of a notice of redemption as described below, at a redemption price equal to 100% of the principal amount hereof, together with accrued interest to the date fixed for redemption (except that if this Note is subject to “Modified Payment upon Acceleration or Redemption,” the amount of principal so payable will be limited to the aggregate principal amount hereof multiplied by the sum of the Issue Price specified on the face hereof (expressed as a percentage of the aggregate principal amount) plus the original issue discount accrued from the Interest Accrual Date to the date of redemption (expressed as a percentage of the aggregate principal amount), with the amount of
original issue discount accrued being calculated using a constant yield method (as described above)), if the Issuer determines that, as a result of any change in or amendment to the laws (including a holding, judgment or as ordered by a court of competent jurisdiction), or any regulations or rulings promulgated thereunder, of the United States or of any political subdivision or taxing authority thereof or therein affecting taxation, or any change in official position regarding the application or interpretation of such laws, regulations or rulings, which change or amendment occurs, becomes effective or, in the case of a change in official position, is announced on or after the Initial Offering Date hereof, the Issuer has or will become obligated to pay Additional Amounts, as defined below, with respect to this Note as described below. Prior to the giving of any notice of redemption pursuant to this paragraph, the Issuer shall deliver to the Trustee (i) a certificate stating that the Issuer is entitled
to effect such redemption and setting forth a statement of facts showing that the conditions precedent to the right of the Issuer to so redeem have occurred, and (ii) an opinion of independent legal counsel satisfactory to the Trustee to such effect based on such statement of facts; provided that no such notice of redemption shall be given earlier than 60 calendar days prior to the earliest date on which the Issuer would be obligated to pay such Additional Amounts if a payment in respect of this Note were then due. 

      Notice of redemption will be given not less than 30 nor more than 60 calendar days prior to the date fixed for redemption or within the Redemption Notice Period specified on the face hereof, which date and the applicable redemption price will be specified in the notice. 

19

     If the face hereof indicates that this Note is subject to “Tax Redemption and Payment of Additional Amounts,” the Issuer will, subject to certain exceptions and limitations set forth below, pay such additional amounts (the “Additional Amounts”) to the holder of this Note who is a U.S. Alien as may be necessary in order that every net payment of the principal of and interest on this Note and any other amounts payable on this Note, after withholding or deduction for or on account of any present or future tax, assessment or governmental charge imposed upon or as a result of such payment by the United States, or any political subdivision or taxing authority thereof or therein, will not be less than the amount provided for in this Note to be then due and payable. The Issuer will not, however, make any payment
of Additional Amounts to any such holder who is a U.S. Alien for or on account of: 

      (a)   any present or future tax, assessment or other governmental charge that would not have been so imposed but for (i) the existence of any present or former connection between such holder, or between a fiduciary, settlor, beneficiary, member or shareholder of such holder, if such holder is an estate, a trust, a partnership or a corporation for U.S. federal income tax purposes, and the United States, including, without limitation, such holder, or such fiduciary, settlor, beneficiary, member or shareholder, being or having been a citizen or resident thereof or being or having been engaged in a trade or business or present therein or having, or having had, a permanent establishment therein or (ii) the presentation by or on behalf of the holder of this Note for payment on a date more than 15 calendar days after the date on which such payment became due and payable or the date on which payment thereof is
duly provided for, whichever occurs later; 

      (b)       any estate, inheritance, gift, sales, transfer, excise or personal
     property tax or any similar tax, assessment or governmental charge; 

      (c)   any tax, assessment or other governmental charge imposed by reason of such holder’s past or present status as a controlled foreign corporation or passive foreign investment company with respect to the United States or as a corporation which accumulates earnings to avoid U.S. federal income tax or as a private foundation or other tax-exempt organization or a bank receiving interest under Section 881(c)(3)(A) of the Internal Revenue Code of 1986, as amended; 

      (d)   any tax, assessment or other governmental charge that is payable otherwise than by withholding or deduction from payments on or in respect of this Note; 

      (e)   any tax, assessment or other governmental charge required to be withheld by any Paying Agent from any payment of principal of, or interest on, this Note, if such payment can be made without such withholding by any other Paying Agent in a city in Western Europe; 

      (f)   any tax, assessment or other governmental charge that would not have been imposed but for the failure to comply with certification, information or other reporting requirements concerning the nationality, residence or identity of the holder or beneficial owner of this Note, if such compliance is required by statute or by regulation of the United States or of any political subdivision or taxing authority thereof or therein as a precondition to relief or exemption from such tax, assessment or other governmental charge; 

20

     (g)   any tax, assessment or other governmental charge imposed by reason of such holder’s past or present status as the actual or constructive owner of 10% or more of the total combined voting power of all classes of stock entitled to vote of the Issuer or as a direct or indirect subsidiary of the Issuer; or 

      (h)   any combination of items (a), (b), (c), (d), (e), (f) or (g).

 In addition, the Issuer shall not be required to make any payment of Additional Amounts (i) to any such holder where such withholding or deduction is imposed on a payment to an individual and is required to be made pursuant to any law implementing or complying with, or introduced in order to conform to, any European Union Directive on the taxation of savings; or (ii) by or on behalf of a holder who would have been able to avoid such withholding or deduction by presenting this Note or the relevant coupon to another Paying Agent in a member state of the European Union. Nor shall the Issuer pay Additional Amounts with respect to any payment on this Note to a U.S. Alien who is a fiduciary or partnership or other than the sole beneficial owner of such payment to the extent such payment would be required by the laws of the United States (or any political subdivision thereof) to be included in the income, for tax purposes, of a beneficiary or
settlor with respect to such fiduciary or a member of such partnership or a beneficial owner who would not have been entitled to the Additional Amounts had such beneficiary, settlor, member or beneficial owner been the holder of this Note. 

      The Senior Indenture permits the Issuer and the Trustee, with the consent of the holders of not less than a majority in aggregate principal amount of the debt securities of all series issued under the Senior Indenture then outstanding and affected (voting as one class), to execute supplemental indentures adding any provisions to or changing in any manner the rights of the holders of each series so affected; provided that the Issuer and the Trustee may not, without the consent of the holder of each outstanding debt security affected thereby, (a) extend the final maturity of any such debt security, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any amount payable on redemption thereof, or change the currency of payment thereof, or modify or amend the provisions for conversion of any currency into any other currency, or modify or amend the provisions for conversion or exchange of the debt security for securities of the Issuer or other entities or for other property or the cash value of the property (other than as provided in the antidilution provisions or other similar adjustment provisions of the debt securities or otherwise in accordance with the terms thereof), or impair or affect the rights of any holder to institute suit for the payment thereof or
(b) reduce the aforesaid percentage in principal amount of debt securities the consent of the holders of which is required for any such supplemental indenture. 

      Except as set forth below, if the principal of, premium, if any, or interest on this Note is payable in a Specified Currency other than U.S. dollars and such Specified Currency is not available to the Issuer for making payments hereon due to the imposition of exchange controls or other circumstances beyond the control of the Issuer or is no longer used by the government of the country issuing such currency or for the settlement of transactions by public institutions within the international banking community, then the Issuer will be entitled to satisfy its obligations to the holder of this Note by making such payments in U.S. dollars on the basis of the Market Exchange Rate on the date of such payment or, if the Market Exchange Rate is not available on such date, as of the most recent practicable date; provided, however, that if the euro

21

  has been substituted for such Specified Currency, the Issuer may at its option (or shall, if so required by applicable law) without the consent of the holder of this Note effect the payment of principal of, premium, if any, or interest on any Note denominated in such Specified Currency in euro in lieu of such Specified Currency in conformity with legally applicable measures taken pursuant to, or by virtue of, the Treaty establishing the European Community, as amended. Any payment made under such circumstances in U.S. dollars or euro where the required payment is in an unavailable Specified Currency will not constitute an Event of Default. If such Market Exchange Rate is not then available to the Issuer or is not published for a particular Specified Currency, the Market Exchange Rate will be based on the highest bid quotation in The City of New York received by the Exchange Rate Agent at approximately 11:00 a.m., New York City time, on the second Business
Day preceding the date of such payment from three recognized foreign exchange dealers (the “Exchange Dealers”) for the purchase by the quoting Exchange Dealer of the Specified Currency for U.S. dollars for settlement on the payment date, in the aggregate amount of the Specified Currency payable to those holders or beneficial owners of Notes and at which the applicable Exchange Dealer commits to execute a contract. One of the Exchange Dealers providing quotations may be the Exchange Rate Agent unless the Exchange Rate Agent is an affiliate of the Issuer. If those bid quotations are not available, the Exchange Rate Agent shall determine the market exchange rate at its sole discretion. 

      The “Exchange Rate Agent” shall be Morgan Stanley & Co. Incorporated, unless otherwise indicated on the face hereof. 

      All determinations referred to above made by, or on behalf of, the Issuer or by, or on behalf of, the Exchange Rate Agent shall be at such entity’s sole discretion and shall, in the absence of manifest error, be conclusive for all purposes and binding on holders of Notes and coupons. 

      So long as this Note shall be outstanding, the Issuer will cause to be maintained an office or agency for the payment of the principal of and premium, if any, and interest on this Note as herein provided in the Borough of Manhattan, The City of New York, and an office or agency in said Borough of Manhattan for the registration, transfer and exchange as aforesaid of the Notes. The Issuer may designate other agencies for the payment of said principal, premium and interest at such place or places (subject to applicable laws and regulations) as the Issuer may decide. So long as there shall be such an agency, the Issuer shall keep the Trustee advised of the names and locations of such agencies, if any are so designated. If any European Union Directive on the taxation of savings comes into force, the Issuer will, to the extent possible as a matter of law, maintain a Paying Agent in a member state of the European Union
that will not be obligated to withhold or deduct tax pursuant to any such Directive or any law implementing or complying with, or introduced in order to conform to, such Directive. 

      With respect to moneys paid by the Issuer and held by the Trustee or any Paying Agent for payment of the principal of or interest or premium, if any, on any Notes that remain unclaimed at the end of two years after such principal, interest or premium shall have become due and payable (whether at maturity or upon call for redemption or otherwise), (i) the Trustee or such Paying Agent shall notify the holders of such Notes that such moneys shall be repaid to the Issuer and any person claiming such moneys shall thereafter look only to the Issuer for payment thereof and (ii) such moneys shall be so repaid to the Issuer. Upon such repayment all liability

22

  of the Trustee or such Paying Agent with respect to such moneys shall thereupon cease, without, however, limiting in any way any obligation that the Issuer may have to pay the principal of or interest or premium, if any, on this Note as the same shall become due. 

      No provision of this Note or of the Senior Indenture shall alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of, premium, if any, and interest on this Note at the time, place, and rate, and in the coin or currency, herein prescribed unless otherwise agreed between the Issuer and the registered holder of this Note. 

      Prior to due presentment of this Note for registration of transfer, the Issuer, the Trustee and any agent of the Issuer or the Trustee may treat the holder in whose name this Note is registered as the owner hereof for all purposes, whether or not this Note be overdue, and none of the Issuer, the Trustee or any such agent shall be affected by notice to the contrary. 

      No recourse shall be had for the payment of the principal of, premium, if any, or the interest on this Note, for any claim based hereon, or otherwise in respect hereof, or based on or in respect of the Senior Indenture or any indenture supplemental thereto, against any incorporator, shareholder, officer or director, as such, past, present or future, of the Issuer or of any successor corporation, either directly or through the Issuer or any successor corporation, whether by virtue of any constitution, statute or rule of law or by the enforcement of any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issue hereof, expressly waived and released. 

      This Note shall for all purposes be governed by, and construed in accordance with, the laws of the State of New York. 

      As used herein, the term “U.S. Alien” means any person who is, for U.S. federal income tax purposes, (i) a nonresident alien individual, (ii) a foreign corporation, (iii) a nonresident alien fiduciary of a foreign estate or trust or (iv) a foreign partnership one or more of the members of which is, for U.S. federal income tax purposes, a nonresident alien individual, a foreign corporation or a nonresident alien fiduciary of a foreign estate or trust. 

      All terms used in this Note which are defined in the Senior Indenture and not otherwise defined herein shall have the meanings assigned to them in the Senior Indenture. 

23

ABBREVIATIONS

     The following abbreviations, when used in the inscription on the face of this instrument, shall be construed as though they were written out in full according to applicable laws or
regulations:

	 	 TEN COM
        	
–
        	
as tenants in common
        
	 	 	 	 
	 	 TEN ENT
        	
–
        	
as tenants by the entireties
        
	 	 	 	 
	 	 JT TEN
        	
–
        	
as joint tenants with right of survivorship
and not as
tenants in common         
	 	 

        	 

        	 

	 	UNIF GIFT
        MIN ACT – 	 
	Custodian	 
	 
	 	 	 (Minor)	 	 (Cust)	 
	 	 	 	 	 	 

	 	Under
    Uniform Gifts to Minors Act	 
	 
		 		
	 	  	(State)	 
	 	 	 	 
	 	 Additional
    abbreviations may also be used though not in the above list.

	 	 	 	 
	 	 	 
	 
		 		

24

  

     FOR VALUE RECEIVED, the undersigned hereby sell(s), assign(s) and transfer(s) unto

____________________________________________
 [PLEASE INSERT SOCIAL SECURITY OR OTHER

      IDENTIFYING NUMBER OF ASSIGNEE]

	 

	 
	 

	 
	 

	[PLEASE PRINT
    OR TYPE NAME AND ADDRESS, INCLUDING ZIP CODE, OF ASSIGNEE]

the within Note and all rights thereunder, hereby irrevocably constituting and appointing such person attorney to transfer such note on the books of the Issuer, with full power of substitution in the
premises.

Dated: _______________________

 

	NOTICE:	 The signature
        to this assignment must correspond with the name as written upon the
        face of the within Note in every particular without alteration or enlargement
    or any change whatsoever.

25

  

OPTION TO ELECT REPAYMENT

     The undersigned hereby irrevocably requests and instructs the Issuer to repay the within Note (or portion thereof specified below) pursuant to its terms at a price equal to the
principal amount thereof, together with interest to the Optional Repayment Date, to the undersigned at

	 

	 
	 

	 
	 

	(Please print
    or typewrite name and address of the undersigned)

       If
  less than the entire principal amount of the within Note is to be repaid, specify
  the portion thereof which the holder elects to have repaid: _________________;
  and specify  the denomination or denominations (which shall not be less than
  the minimum authorized denomination) of the Notes to be issued to the holder
  for the portion of the within Note not being repaid (in the absence of any
  such specification, one such Note will be issued for the portion not being
  repaid):
__________________.

	 	 	 
	
Dated:
________________________
        	 
        	_________________________________________
			
NOTICE: The signature on this Option
to Elect
			
Repayment must correspond with the
name as
			
written upon the face of the within
instrument in
			
every particular without alteration
or enlargement.

26EX-10.2

 

FORM OF SALE AND SERVICING AGREEMENT

among

[ ] VEHICLE RECEIVABLES TRUST 200[ ]-[ ],

as Issuer,

[GOLDMAN SACHS ASSET BACKED SECURITIES CORP.],

as Company,

and

[                    ],

as Servicer

Dated as of

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE I

	 
	 	 	 	 	 	 
	Definitions

	 
	 	 	 	 	 	 
	Section 1.01

	 	Definitions
	 	 	1	 
	 
	 	 	 	 	 	 
	Section 1.02

	 	Other Definitional Provisions
	 	 	13	 
	 
	 	 	 	 	 	 
	ARTICLE II

	 
	 	 	 	 	 	 
	Conveyance of Receivables

	 
	 	 	 	 	 	 
	Section 2.01

	 	Conveyance of Receivables
	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE III

	 
	 	 	 	 	 	 
	The Receivables

	 
	 	 	 	 	 	 
	Section 3.01

	 	Representations and Warranties of the Company with Respect to the Receivables
	 	 	15	 
	 
	 	 	 	 	 	 
	Section 3.02

	 	Repurchase upon Breach
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.03

	 	Custody of Receivable Files
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.04

	 	Duties of Servicer as Custodian
	 	 	18	 
	 
	 	 	 	 	 	 
	Section 3.05

	 	Instructions; Authority To Act
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.06

	 	Custodian’s Indemnification
	 	 	19	 
	 
	 	 	 	 	 	 
	Section 3.07

	 	Effective Period and Termination
	 	 	19	 
	 
	 	 	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 	 	 
	Administration and Servicing of Receivables

	 
	 	 	 	 	 	 
	Section 4.01

	 	Duties of Servicer
	 	 	20	 
	 
	 	 	 	 	 	 
	Section 4.02

	 	Collection and Allocation of Receivable Payments
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.03

	 	Realization upon Receivables
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.04

	 	Physical Damage Insurance
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.05

	 	Maintenance of Security Interests in Financed Vehicles
	 	 	21	 
	 
	 	 	 	 	 	 
	Section 4.06

	 	Covenants of Servicer
	 	 	22	 
	 
	 	 	 	 	 	 
	Section 4.07

	 	Purchase of Receivables upon Breach
	 	 	22	 
	 
	 	 	 	 	 	 
	Section 4.08

	 	Servicing Fee
	 	 	22	 
	 
	 	 	 	 	 	 
	Section 4.09

	 	Servicer’s Certificate
	 	 	23	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 4.10

	 	Annual Statement as to Compliance; Notice of Default
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 4.11

	 	Annual Independent Certified Public Accountants’ Report
	 	 	23	 
	 
	 	 	 	 	 	 
	Section 4.12

	 	Access to Certain Documentation and Information Regarding Receivables
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.13

	 	Servicer Expenses
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.14

	 	Appointment of Subservicer
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 4.15

	 	Compliance with Regulation AB
	 	 	24	 
	 
	 	 	 	 	 	 
	ARTICLE V

	 
	 	 	 	 	 	 
	Distributions; Reserve Account;

	 
	 	 	 	 	 	 
	Statements to Certificateholders and Noteholders

	 
	 	 	 	 	 	 
	Section 5.01

	 	Establishment of Trust Accounts
	 	 	24	 
	 
	 	 	 	 	 	 
	Section 5.02

	 	Collections
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 5.03

	 	Application of Collections
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 5.04

	 	Advances
	 	 	27	 
	 
	 	 	 	 	 	 
	Section 5.05

	 	Additional Deposits
	 	 	28	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	Section 5.06

	 	Distributions
	 	 	28	 
	 
	 	 	 	 	 	 
	Section 5.07

	 	Reserve Account
	 	 	30	 
	 
	 	 	 	 	 	 
	Section 5.08

	 	Statements to Certificateholders and Noteholders
	 	 	32	 
	 
	 	 	 	 	 	 
	Section 5.09

	 	Net Deposits
	 	 	33	 
	 
	 	 	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 	 	 
	The Company

	 
	 	 	 	 	 	 
	Section 6.01

	 	Representations of the Company
	 	 	33	 
	 
	 	 	 	 	 	 
	Section 6.02

	 	Corporate Existence
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 6.03

	 	Liability of the Company
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 6.04

	 	Merger or Consolidation of, or Assumption of the Obligations of the Company
	 	 	34	 
	 
	 	 	 	 	 	 
	Section 6.05

	 	Limitation on Liability of the Company and Others
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 6.06

	 	The Company May Own Certificates or Notes
	 	 	35	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 	 	 
	The Servicer

	 
	 	 	 	 	 	 
	Section 7.01

	 	Representations of Servicer
	 	 	35	 
	 
	 	 	 	 	 	 
	Section 7.02

	 	Indemnities of Servicer
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 7.03

	 	Merger or Consolidation of, or Assumption of the Obligations of, Servicer
	 	 	37	 
	 
	 	 	 	 	 	 
	Section 7.04

	 	Limitation on Liability of Servicer and Others
	 	 	38	 
	 
	 	 	 	 	 	 
	Section 7.05

	 	Servicer Not To Resign
	 	 	38	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 	 	 
	Default

	 
	 	 	 	 	 	 
	Section 8.01

	 	Servicer Default
	 	 	39	 
	 
	 	 	 	 	 	 
	Section 8.02

	 	Appointment of Successor
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 8.03

	 	Repayment of Advances
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 8.04

	 	Notification to Noteholders and Certificateholders
	 	 	40	 
	 
	 	 	 	 	 	 
	Section 8.05

	 	Waiver of Past Defaults
	 	 	41	 

 

 

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 
	 	 	 	 	 	 
	ARTICLE IX

	 
	 	 	 	 	 	 
	Termination

	 
	 	 	 	 	 	 
	Section 9.01

	 	Optional Purchase of All Receivables
	 	 	41	 
	 
	 	 	 	 	 	 
	ARTICLE X

	 
	 	 	 	 	 	 
	Miscellaneous

	 
	 	 	 	 	 	 
	Section 10.01

	 	Amendment
	 	 	42	 
	 
	 	 	 	 	 	 
	Section 10.02

	 	Protection of Title to Trust
	 	 	43	 
	 
	 	 	 	 	 	 
	Section 10.03

	 	Notices
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 10.04

	 	Assignment by the Company or the Servicer
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 10.05

	 	Limitations on Rights of Others
	 	 	45	 
	 
	 	 	 	 	 	 
	Section 10.06

	 	Severability
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.07

	 	Separate Counterparts
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.08

	 	Headings
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.09

	 	Governing Law
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.10

	 	Assignment by Issuer
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.11

	 	Nonpetition Covenant
	 	 	46	 
	 
	 	 	 	 	 	 
	Section 10.12

	 	Limitation of Liability of Owner Trustee and
Indenture Trustee
	 	 	47	 

 

 

     SALE AND SERVICING AGREEMENT dated as of                     , among [ ] VEHICLE
RECEIVABLES TRUST 200[ ] — [ ], a Delaware business trust (the “Issuer”), [Goldman Sachs Asset
Backed Securities Corp.], a Delaware corporation (the “Company”), and                     ,
a                      corporation (the “Servicer”).

     WHEREAS, the Issuer desires to purchase a portfolio of receivables arising in connection with
motor vehicle installment loan contracts and motor vehicle retail installment sale contracts held by the Company;

     WHEREAS, the Company is willing to sell such receivables to the Issuer; and

     WHEREAS, the Servicer is willing to service such receivables;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
the parties hereto agree as follows:

ARTICLE I

Definitions

Section 1.01 Definitions. Whenever used in this Agreement, the following words and phrases, unless
the context otherwise requires, shall have the following meanings:

          “Accelerated Principal Distribution Amount” means, with respect to any Distribution Date, an
amount equal to the portion of the Total Distribution Amount for such Distribution Date that
remains after the payment of (i) the Servicing Fee, (ii) the Noteholders’ Interest Distributable
Amount, (iii) the Regular Principal Distribution Amount, (iv) the Certificateholders’ Interest
Distributable Amount and (v) the amount, if any, required to be deposited into the Reserve Account
on such Distribution Date pursuant to Section 5.06(b)(ii)(F).

          “Advance” means either a Precomputed Advance or Simple Interest Advance or both, as
applicable.

          “Amount Financed” means with respect to a Receivable, the amount advanced under the related
Motor Vehicle Installment Contract toward the purchase price of the Financed Vehicle and any
related costs.

          “Annual Percentage Rate” or “APR” of a Receivable means the annual rate of finance charges
stated in the related Motor Vehicle

          Installment Contract.

          “Available Amount” means, with respect to any Distribution Date, the amount of funds on
deposit in the Reserve Account on such Distribution Date less the Certificate Interest Reserve
Amount with respect to such Distribution Date before giving effect to any reduction thereto on such
date.

          “Basic Documents” means the Certificate of Trust, the Trust Agreement, the Sale and Servicing
Agreement, the Note Depository Agreement, the Certificate Depository Agreement and other documents
and certificates delivered in connection therewith.

          “Certificate Balance” equals, initially, $ and, thereafter, equals such initial Certificate
Balance reduced by all amounts allocable to principal previously distributed to Certificateholders.

          “Certificate Distribution Account” has the meaning assigned to such term in the Trust
Agreement.

          “Certificateholders” has the meaning assigned to such term in the Trust Agreement.

          “Certificateholders’ Distributable Amount” means, with respect to any Distribution Date, the
sum of the Certificateholders’ Principal Distributable Amount and the Certificateholders’ Interest
Distributable Amount for such date.

          “Certificateholders’ Interest Carryover Shortfall” means, with respect to any Distribution
Date, the excess of the sum of the Certificateholders’ Monthly Interest Distributable Amount for
the preceding Distribution Date and any outstanding Certificateholders’ Interest Carryover
Shortfall on such preceding Distribution Date, over the amount in respect of interest that is
actually deposited in the Certificate Distribution Account on such preceding Distribution Date,
plus 30 days’ interest on such excess, to the extent permitted by law, at the Pass-Through Rate.

          “Certificateholders’ Interest Distributable Amount” means, with respect to any Distribution
Date, the sum of the Certificateholders’ Monthly Interest Distributable Amount for such
Distribution Date and the Certificateholders’ Interest Carryover Shortfall for such Distribution
Date. Interest with respect to the Certificates shall be computed on the basis of a 360-day year
consisting of twelve 30-day months for all purposes of this Agreement and the Basic Documents.

          “Certificateholders’ Monthly Interest Distributable Amount” means, with respect to any
Distribution Date, 30 days of
interest (or, in the case of the first Distribution Date, interest
accrued from and including the Closing Date to but excluding                     ) at the
Pass-Through Rate on the Certificate Balance on the last day of the preceding Collection Period
(or, in the case of
the first Distribution Date, on the Closing Date).

 

 

          “Certificateholders’ Monthly Principal Distributable Amount” means, with respect to any
Distribution Date prior to the Distribution Date on which the Notes are paid in full, zero; and
with respect to any Distribution Date on or after the Distribution Date on which the Notes are paid
in full, the Regular Principal Distribution Amount for such Distribution Date (less, on the
Distribution Date on which the Notes are paid in full, the portion thereof payable on the Notes).

          “Certificateholders’ Principal Carryover Shortfall” means, as of the close of any Distribution
Date, the excess of the Certificateholders’ Monthly Principal Distributable Amount and any
outstanding Certificateholders’ Principal Carryover Shortfall from the preceding Distribution Date,
over the amount in respect of principal that is actually deposited in the Certificate Distribution
Account on such current Distribution Date.

          “Certificateholders’ Principal Distributable Amount” means, with respect to any Distribution
Date, the sum of the Certificateholders’ Monthly Principal Distributable Amount for such
Distribution Date and the Certificateholders’ Principal Carryover Shortfall as of the close of the
preceding Distribution Date; provided, however, that the Certificateholders’ Principal
Distributable Amount shall not exceed the Certificate Balance. In addition, on the Final Scheduled
Distribution Date, the principal required to be included in the Certificateholders’ Principal
Distributable Amount will include the lesser of (a) (i) any Scheduled Payments of principal due and
remaining unpaid on each Precomputed Receivable and (ii) any principal due and remaining unpaid on
each Simple Interest Receivable, in each case, in the Trust as of the Final Scheduled Maturity Date
or (b) the amount that is necessary (after giving effect to the other amounts to be deposited in
the Certificate Distribution Account on such Distribution Date and allocable to principal) to
reduce the Certificate Balance to zero.

          “Certificate Interest Reserve Amount” means, at the time of reference, the lesser of (i) $
less the amount of any application of the Certificate Interest Reserve Amount to pay interest on
the Certificates on any prior Distribution Date and (ii)                     % of the Certificate Balance
on such Distribution Date (before giving effect to any reduction thereof on such Distribution
Date); provided, however, that the Certificate Interest Reserve Amount shall be zero subsequent to
any reduction by any Rating Agency of its rating of any Class of Notes to less than “A-” or its
equivalent, or withdrawal by any Rating Agency of its rating of any Class of Notes, unless such
rating has been restored.

          “Certificate Depository Agreement” has the meaning specified in Section 1.01 of the Trust
Agreement.

          “Certificate of Trust” means the certificate of trust of the Issuer substantially in the form
of Exhibit B to the Trust Agreement.

          “Certificate Pool Factor” means, as of the close of business on the last day of a Collection
Period, a seven-digit decimal figure equal to the Certificate Balance (after giving effect to any
reductions therein to be made on the immediately following Distribution Date) divided by the
initial Certificate Balance. The Certificate Pool Factor will be 1.0000000 as of the Closing Date;
thereafter, the Certificate Pool Factor will decline to reflect reductions in the Certificate
Balance.

          “Certificates” means the Trust Certificates (as defined in the Trust Agreement).

          “Class” means any one of the classes of Notes.

          “Class A-1 Final Scheduled Distribution Date” means the                     
Distribution Date.

          “Class A-1 Noteholder” means the Person in whose name a Class A-1 Note is registered in the
Note Register.

          “Class A-2 Final Scheduled Distribution Date” means the                     
Distribution Date.

          “Class A-2 Noteholder” means the Person in whose name a Class A-2 Note is registered in the
Note Register.

          “Clearing Agency” means an organization registered as a clearing agency pursuant to Section
17A of the Exchange Act.

 

 

          “Collection Account” means the account designated as such, established and maintained pursuant
to Section 5.01(a)(i).

          “Collection Period” means a calendar month. Any amount stated as of the last day of a
Collection Period or as of the first day of a Collection Period shall give effect to the following
calculations as determined as of the close of business on such last day: (1) all applications of
collections, (2) all current and previous Payaheads, (3) all applications of Payahead Balances, (4)
all Advances and reductions of Outstanding Precomputed Advances or Outstanding Simple Interest
Advances and (4) all distributions to be made on the following Distribution Date.

          “Company” means [Goldman Sachs Asset Backed Securities Corp.], a Delaware corporation and any
successor in interest.

          “Corporate Trust Office” means the principal office of the Indenture Trustee at which at any
particular time its corporate trust business shall be administered, which office at the date of
execution of this Agreement is located at                     ; or at
such other address as the Indenture Trustee may designate from time to time by notice to the
Noteholders and the Company, or the principal corporate trust office of any successor Indenture
Trustee (of which address such successor Indenture Trustee will notify the Noteholders and the
Company).

          “Cutoff Date” means                     .

          “Cutoff Date Pool Balance” means the aggregate principal balance of the Receivables as of the
Cutoff Date.

          “Delivery” when used with respect to Trust Account Property means:

          (a) with respect to bankers’ acceptances, commercial paper, negotiable certificates of deposit
and other obligations that constitute “instruments” within the meaning of Section 9-105(1)(i) of
the UCC and are susceptible of physical delivery, transfer thereof to the Indenture Trustee or its
nominee or custodian by physical delivery to the Indenture Trustee or its nominee or custodian
endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or
endorsed in blank, and, with respect to a certificated security (as defined in Section 8-102 of the
UCC) transfer thereof (i) by delivery of such certificated security endorsed to, or registered in
the name of, the Indenture Trustee or its nominee or custodian or endorsed in blank to a financial
intermediary (as defined in Section 8-313 of the UCC) and the making by such financial intermediary
of entries on its books and records identifying such certificated securities as belonging to the
Indenture Trustee or its nominee or custodian and the sending by such financial intermediary of a
confirmation of the purchase of such certificated security by the Indenture Trustee or its nominee
or custodian, or (ii) by delivery thereof to a “clearing corporation” (as defined in Section
8-102(3) of the UCC) and the making by such clearing corporation of appropriate entries on its
books reducing the appropriate securities account of the transferor and increasing the appropriate
securities account of a financial intermediary by the amount of such certificated security, the
identification by the clearing corporation of the certificated securities for the sole and
exclusive account of the financial intermediary, the maintenance of such certificated securities by
such clearing corporation or a “custodian bank” (as defined in Section 8-102(4) of the UCC) or the
nominee of either subject to the clearing corporation’s exclusive control, the sending of a
confirmation by the financial intermediary of the purchase by the Indenture Trustee or its nominee
or custodian of such securities and the making by such financial intermediary of entries on its
books and records identifying such certificated securities as belonging to the Indenture Trustee or
its nominee or custodian (all of the foregoing, “Physical Property”), and, in any event, any such
Physical Property in registered form shall be in the name of the Indenture Trustee or its nominee
or custodian; and such additional or alternative procedures as may hereafter become appropriate to
effect the complete transfer of ownership of any such Trust Account Property (as

 

 

defined herein) to the Indenture Trustee or its nominee or custodian, consistent with changes in
applicable law or regulations or the interpretation thereof;

          (b) with respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage
Corporation or by the Federal National Mortgage Association that is a book-entry security held
through the Federal Reserve System pursuant to Federal book-entry regulations, the following
procedures, all in accordance with applicable law, including applicable Federal regulations and
Articles 8 and 9 of the UCC: book-entry registration of such Trust Account Property to an
appropriate book-entry account maintained with a Federal Reserve Bank by a financial intermediary
which is also a “depository” pursuant to applicable Federal regulations and issuance by such
financial intermediary of a deposit advice or other written confirmation of such book-entry
registration to the Indenture Trustee or its nominee or custodian of the purchase by the Indenture
Trustee or its nominee or custodian of such book-entry securities; the making by such financial
intermediary of entries in its books and records identifying such book-entry security held through
the Federal Reserve System pursuant to Federal book-entry regulations as belonging to the Indenture
Trustee or its nominee or custodian and indicating that such custodian holds such Trust Account
Property solely as agent for the Indenture Trustee or its nominee or custodian; and such additional
or alternative procedures as may hereafter become appropriate to effect complete transfer of
ownership of any such Trust Account Property to the Indenture Trustee or its nominee or custodian,
consistent with changes in applicable law or regulations or the interpretation thereof; and

          (c) with respect to any item of Trust Account Property that is an uncertificated security
under Article 8 of the UCC and that is not governed by clause (b) above, registration on the books
and records of the issuer thereof in the name of the financial intermediary, the sending of a
confirmation by the financial intermediary of the purchase by the Indenture Trustee or its nominee
or custodian of such uncertificated security, the making by such financial intermediary of entries
on its books and records identifying such uncertificated certificates as belonging to the Indenture
Trustee or its nominee or custodian.

          “Distribution Date” means, with respect to each Collection Period, the                     
day of the following month or, if such day is not a Business Day, the immediately following
Business Day, commencing on                     .

          “Eligible Deposit Account” means either (a) a segregated account with an Eligible Institution
or (b) a segregated trust account with the corporate trust department of a depository institution
organized under the laws of the United States of America or any one of the states thereof or the
District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and
acting as trustee for funds deposited in such account, so long as any of the securities of such
depository institution shall have a credit rating from each Rating Agency in one of its generic
rating categories that signifies investment grade.

          “Eligible Institution” means (a) the corporate trust department of the Indenture Trustee, the
Owner Trustee or so long as it shall be Paying Agent under the Trust
Agreement or (b) a depository institution organized under the laws of the United States of America
or any one of the states thereof or the District of Columbia (or any domestic branch of a foreign
bank), which (i) has either (A) a long-term unsecured debt rating of AAA or better by Standard &
Poor’s and A1 or better by Moody’s or (B) a certificate of deposit rating of A-1+ by Standard &
Poor’s and P-1, or better by Moody’s, or any other long-term or short-term or certificate of
deposit rating acceptable to the Rating Agencies and (ii) whose deposits are insured by the FDIC.
If so qualified, the Indenture Trustee, the Owner Trustee or                      may be
considered an Eligible Institution for the purposes of clause (b) of this definition.

 

 

          “Eligible Investments” means book-entry securities, negotiable instruments or securities
represented by instruments in bearer

          or registered form which evidence:

          (a) direct obligations of, and obligations fully guaranteed as to the full and timely payment
by, the United States of America;

          (b) demand deposits, time deposits or certificates of deposit of any depository institution or
trust company incorporated under the laws of the United States of America or any state thereof (or
any domestic branch of a foreign bank) and subject to supervision and examination by Federal or
State banking or depository institution authorities; provided, however, that at the time of the
investment or contractual commitment to invest therein, the commercial paper or other short-term
unsecured debt obligations (other than such obligations the rating of which is based on the credit
of a Person other than such depository institution or trust company) thereof shall have a credit
rating from each of the Rating Agencies in the highest investment category granted thereby;

          (c) commercial paper having, at the time of the investment or contractual commitment to invest
therein, a rating from each
of the Rating Agencies in the highest investment category granted thereby;

          (d) investments in money market funds having a rating from each of the Rating Agencies in the
highest investment category granted
thereby;

          (e) bankers’ acceptances issued by any depository institution or trust company referred to in
clause (b) above;

          (f) repurchase obligations with respect to any security that is a direct obligation of, or
fully guaranteed by, the United States of America or any agency or instrumentality thereof the
obligations of which are backed by the full faith and credit of the United States of America, in
either case entered into with a depository institution or trust company (acting as principal)
described in clause (b); or

          (g) any other investment with respect to which the Issuer or the Servicer has received written
notification from the Rating Agencies that the acquisition of such investment as an Eligible
Investment will not result in a withdrawal or downgrading of the ratings on the Notes or
Certificates.

          “FDIC” means the Federal Deposit Insurance Corporation.

          “Final Scheduled Distribution Date” means the                      Distribution Date.

          “Final Scheduled Maturity Date” means                     .

          “Financed Vehicle” means an automobile, van or light-duty truck, together with all accessions
thereto, securing an Obligor’s indebtedness under the related Receivable.

          “Indenture” means the Indenture dated as of                     , between the Issuer
and the Indenture Trustee.

          “Indenture Trustee” means the Person acting as Indenture Trustee under the Indenture, its
successors in interest and any successor trustee under the Indenture.

          “Insolvency Event” means, with respect to a specified Person, (a) the filing of a decree or
order for relief by a court having jurisdiction in the premises in respect of such Person or any
substantial part of its property in an involuntary case under any applicable federal or state
bankruptcy, insolvency or other similar law now or hereafter in effect, or appointing a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official for such Person or for
any substantial part of its property, or ordering the winding-up or liquidation of such Person’s
affairs, and such decree or order shall remain unstayed and in effect for a period of 60
consecutive days; or (b) the commencement by such Person of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the
consent by such Person to the entry of an order for relief in an involuntary case under any such
law, or the consent by such Person to the appointment of or taking possession by a receiver,
liquidator, assignee,

 

 

custodian, trustee, sequestrator or similar official for such Person or for any substantial part of
its property, or the making by such Person of any general assignment for the benefit of creditors,
or the failure by such Person generally to pay its debts as such debts become due, or the taking of
action by such Person in furtherance of any of the foregoing.

          “Interest Distribution Amount” means, with respect to any Distribution Date, the sum of the
following amounts, without duplication, with respect to the Receivables for the Collection Period
immediately preceding such Distribution Date: (a) that portion of all collections on Receivables
(including Payaheads) allocable to interest plus that portion of Payaheads allocable to principal,
(b) Liquidation Proceeds with respect to the Receivables to the extent allocable to interest due
thereon in accordance with the Servicer’s customary servicing procedures, (c) all Advances made by
the Servicer of interest due on Receivables, (d) the Purchase Amount of each Receivable that became
a Purchased Receivable during such Collection Period to the extent attributable to accrued interest
on such Receivable, and (e) Recoveries for such Collection Period; provided, however, that in
calculating the Interest Distribution Amount the following will be excluded: (i) amounts received
on Precomputed Receivables to the extent of any unreimbursed Precomputed Advances of interest; (ii)
Liquidation Proceeds with respect to a particular Precomputed Receivable to the extent of any
unreimbursed Precomputed Advances of interest; (iii) all payments and proceeds (including
Liquidation Proceeds) of any Purchased Receivables the Purchase Amount of which has been included
in the Interest Distribution Amount in a prior Collection Period; (iv) the sum for all Simple
Interest Receivables of collections on each such Simple Interest Receivable received during such
preceding Collection Period in excess of the amount of interest that would be due on the aggregate
Principal Balance of the Simple Interest Receivables during such Collection Period at their
respective APRs if a payment were received on each Simple Interest Receivable during such
Collection Period on the date payment is due under the terms of such Simple Interest Receivable;
and (v) Liquidation Proceeds with respect to a Simple Interest Receivable attributable to accrued
and unpaid interest thereon (but not including interest for the then current Collection Period) but
only to the extent of any unreimbursed Simple Interest Advances.

          “Investment Earnings” means, with respect to any Distribution Date, the investment earnings
(net of losses and investment expenses) on amounts on deposit in the Trust Accounts to be deposited
into the Collection Account on such Distribution Date pursuant to Section 5.01(b).

          “Issuer” means [ ] Vehicle Receivables Trust 200[ ]-[ ].

          “Lien” means a security interest, lien, charge, pledge, equity or encumbrance of any kind,
other than tax liens, mechanics’ liens and any liens that attach to a Receivable by operation of
law.

          “Liquidated Receivable” means any Receivable liquidated by the Servicer through the sale of a
Financed Vehicle or otherwise.

          “Liquidation Proceeds” means, with respect to any Liquidated Receivable, the moneys collected
in respect thereof, from whatever source on a Liquidated Receivable during the Collection Period in
which such Receivable became a Liquidated Receivable, net of the sum of any amounts expended by the
Servicer in connection with such liquidation and any amounts required by law to be remitted to the
Obligor on such Liquidated Receivable.

          “Motor Vehicle Installment Contract” means a motor vehicle loan installment contract
originated by a Seller or a motor vehicle retail installment sale contract acquired by a Seller
from a motor vehicle retail dealer or another financial institution.

          “Note Depository Agreement” means the agreement dated                     , among the
Issuer, the Indenture Trustee and the Depository Trust Company, as the initial Clearing Agency,
relating to the Notes.

 

 

          “Note Distribution Account” means the account designated as such, established and maintained
pursuant to Section 5.01(a)(iii).

          “Note Pool Factor” means, with respect to each Class of Notes as of the close of business on
the last day of a Collection Period, a seven-digit decimal figure equal to the outstanding
principal balance of such Class of Notes (after giving effect to any reductions thereof to be made
on the immediately following Distribution Date) divided by the original outstanding principal
balance of such Class of Notes. The Note Pool Factor for each Class of Notes will be 1.0000000 as
of the Closing Date; thereafter, the Note Pool Factor will decline to reflect reductions in the
outstanding principal balance of such Class of Notes.

          “Noteholders’ Distributable Amount” means, with respect to any Distribution Date, the sum of
the Noteholders’ Principal Distributable Amount and the Noteholders’ Interest Distributable Amount
for such Distribution Date.

          “Noteholders’ Interest Carryover Shortfall” means, with respect to any Distribution Date, the
excess of the sum of the Noteholders’ Monthly Interest Distributable Amount for the preceding
Distribution Date and any outstanding Noteholders’ Interest Carryover Shortfall on such preceding
Distribution Date, over the amount in respect of interest that is actually deposited in the Note
Distribution Account on such preceding Distribution Date, plus interest on the amount of interest
due but not paid to Noteholders on the preceding Distribution Date, to the extent permitted by law,
at the Interest Rate borne by each Class of the Notes for the related Interest Period.

          “Noteholders’ Interest Distributable Amount” means, with respect to any Distribution Date, the
sum of the Noteholders’ Monthly Interest Distributable Amount for such Distribution Date and the
Noteholders’ Interest Carryover Shortfall for such Distribution Date. For all purposes of this
Agreement and the Basic Documents, interest with respect to all Classes of Notes shall be computed
on the basis of a 360-day year consisting of twelve 30-day months.

          “Noteholders’ Monthly Interest Distributable Amount” means, with respect to any Distribution
Date, interest accrued for the related Interest Accrual Period on each Class of Notes at the
Interest Rate for such Class on the outstanding principal balance of the Notes of such Class on the
immediately preceding Distribution Date (or, in the case of the first Distribution Date, the
Closing Date), after giving effect to all distributions of principal to Holders of the Notes of
such Class on or prior to such Distribution Date (or, in the case of the first Distribution Date,
on the Closing Date).

          “Noteholders Monthly Principal Distributable Amount” means, with respect to any Distribution
Date, the sum of (i) the Regular Principal Distribution Amount plus (ii) the Accelerated Principal
Amount plus (iii) any accelerated payments of principal required to be made from amounts on deposit
in the Reserve Account pursuant to Section 5.07(b)(ii).

          “Noteholders’ Principal Carryover Shortfall” means, as of the close of any Distribution Date,
the excess of the Noteholders’ Monthly Principal Distributable Amount and any outstanding
Noteholders’ Principal Carryover Shortfall from the preceding Distribution Date, over the amount in
respect of principal that is actually deposited in the Note Distribution Account on such current
Distribution Date.

          “Noteholders’ Principal Distributable Amount” means, with respect to any Distribution Date,
the sum of the Noteholders’ Monthly Principal Distributable Amount for such Distribution Date and
the Noteholders’ Principal Carryover Shortfall as of the close of the preceding Distribution Date;
provided, however, that the Noteholders’ Principal Distributable Amount shall not exceed the
outstanding principal balance of the Notes. In addition, (a) on the Class A-1 Final Scheduled
Distribution Date, the principal required to be deposited in the Note Distribution Account will
include the amount necessary (after giving effect to the other amounts to be deposited in the Note
Distribution Account on such Distribution Date and allocable to principal) to reduce the
Outstanding Amount of the Class A-1 Notes to zero; and (b) on the Class A-2 Final

 

 

Scheduled Distribution Date, the principal required to be deposited in the Note Distribution
Account will include the amount necessary (after giving effect to the other amounts to be deposited
in the Note Distribution Account on such Distribution Date and allocable to principal) to reduce
the Outstanding Amount of the Class A-2 Notes to zero.

          “Obligor” on a Receivable means the purchaser or co-purchasers of the Financed Vehicle and any
other Person who owes payments under the related Motor Vehicle Installment Contract.

          “Officers’ Certificate” means a certificate signed by (a) the chairman of the board, the
president, any vice president and (b) the treasurer, assistant treasurer, secretary or assistant
secretary of the Company or the Servicer, as appropriate.

          “Opinion of Counsel” means one or more written opinions of counsel, who may be an employee of
or counsel to the Company or the Servicer, which counsel shall be acceptable to the Indenture
Trustee, the Owner Trustee or the Rating Agencies, as applicable.

          “Outstanding Precomputed Advances” on the Precomputed Receivables means the sum, as of the
close of business on the last day of a Collection Period, of all Precomputed Advances as reduced as
provided in Section 5.04(a).

          “Outstanding Simple Interest Advances” on the Simple Interest Receivables means the sum, as of
the close of business on the last day of a Collection Period, of all Simple Interest Advances as
reduced as provided in Section 5.04(b).

          “Owner Trust Estate” has the meaning assigned to such term in the Trust Agreement.

          “Owner Trustee” means the Person acting as Owner Trustee under the Trust Agreement, its
successors in interest and any successor owner trustee under the Trust Agreement.

          “Pass-Through Rate” means                     % per annum.

          “Payahead” means, with respect to any Receivable that is a Precomputed Receivable, the amount,
as of the close of business on the last day of a Collection Period, computed in accordance with Section 5.03.

          “Payahead Balance” means, with respect to any Receivable that is a Precomputed Receivable, the
sum, as of the close of business on the last day of a Collection Period, of all Payaheads made by
or on behalf of the Obligor on such Precomputed Receivable, as reduced by applications of previous
Payaheads with respect to such Precomputed Receivable pursuant to Section 5.05 and 5.04.

          “Payment Distribution Date” means, with respect to any Distribution Date, the Business Day
immediately preceding such Distribution
Date.

          “Physical Property” has the meaning assigned to such term in the definition of “Delivery”
above.

          “Pool Balance” means, as of the close of business on the last day of a Collection Period, the
aggregate Principal Balance of the Receivables as of such day (excluding Purchased Receivables and
Liquidated Receivables).

          “Precomputed Advance” means the amount, as of the close of business on the last day of a
Collection Period, that the Servicer is required to advance on the related Precomputed Receivables
pursuant to Section 5.04(a).

          “Precomputed Receivable” means any Receivable (i) under which the portion of a payment
allocable to earned interest (which may be referred to in the related Motor Vehicle Installment
Contract as an add-on finance charge) and the portion allocable to the Amount Financed is
determined according to the sum of periodic balances or the sum of monthly balances or any
equivalent method or (ii) that is a monthly actuarial receivable.

          “Principal Balance” means (a) with respect to a Precomputed Receivable, the Amount Financed
minus the sum, as of the close of business on the last day of a Collection Period, of (i) that
portion of all Scheduled Payments due on or prior to such day allocable to principal

 

 

using the actuarial or constant yield method, (ii) any refunded portion of extended warranty
protection plan costs or of physical damage, credit life or disability insurance premiums included
in the Amount Financed, (iii) the portion of any related Purchase Amount allocable to principal and
(iv) any prepayment in full or any partial prepayments applied to reduce the related Principal
Balance and (b) with respect to a Simple Interest Receivable, the Amount Financed minus the sum, as
of the close of business on the last day of a Collection Period, of (i) the portion of all payments
made by or on behalf of the related Obligor on or prior to such day and allocable to principal
using the Simple Interest Method and (ii) the portion of any related Purchase Amount allocable to
principal.

          “Purchase Amount” means the amount, as of the close of business on the last day of a
Collection Period, required to prepay a Receivable in full under the terms thereof, including
interest to the end of the month of purchase.

          “Purchased Receivable” means a Receivable purchased as of the close of business on the last
day of a Collection Period by the Servicer pursuant to Section 4.07 or by the Company pursuant to
Section 3.02.

          “Rating Agency” means                      or, if no such organization or successor is
any longer in existence, a nationally recognized statistical rating organization or other
comparable Person designated by the Company, notice of which designation shall be given to the
Indenture Trustee, the Owner Trustee and the Servicer.

          “Rating Agency Condition” means, with respect to any action, that each Rating Agency shall
have been given 10 days’ (or such shorter period as shall be acceptable to each Rating Agency)
prior notice thereof and that, within 7 days of receipt of such notice, none of the Rating Agencies
shall have notified the Company, the Servicer, the Owner Trustee or the Indenture Trustee in
writing that such action will result in a reduction or withdrawal of the then current rating of the
Notes or the Certificates.

          “Realized Losses” means, with respect to any Receivable that becomes a Liquidated Receivable,
the excess of the Principal Balance of such Liquidated Receivable over Liquidation Proceeds to the
extent allocable to principal.

          “Receivable” means any Motor Vehicle Installment Contract listed on Schedule I (which Schedule
may be in the form of microfiche).

          “Receivable Files” means the documents specified in Section 3.03.

          “Receivables Purchase Agreement” means an agreement, substantially in the form of Exhibit H
hereto, between the Company and a Seller, pursuant to which such Seller sold Motor Vehicle
Installment Contracts to be included in the Trust to the Company.

          “Recoveries” means, with respect to any Receivable that becomes a Liquidated Receivable,
monies collected in respect thereof, from whatever source, during any Collection Period following
the Collection Period in which such Receivable became a Liquidated Receivable, net of the sum of
any amounts expended by the Servicer for the account of the Obligor and any amounts required by law
to be remitted to the Obligor.

          “Regular Principal Distribution Amount” means, with respect to each Receivable and any
Distribution Date, the sum of the following amounts, without duplication, in respect of the
Collection Period immediately preceding such Distribution Date: (a) that portion of all collections
on Receivables allocable to principal (exclusive of Payaheads allocable to principal that have not
been applied as payments under the related Receivables in such Collection Period and inclusive of
Payaheads allocable to principal that have been applied as payments under the related Receivables
in such Collection Period), (b) all Liquidation Proceeds attributable to the principal amount of
Receivables that became Liquidated Receivables during such Collection Period in accordance with the
Servicer’s customary servicing procedures, plus the amount of Realized Losses with respect to such
Liquidated Receivables, (c) all Precomputed Advances made

 

 

by the Servicer of principal due on the Precomputed Receivables, (d) to the extent attributable to
principal, the Purchase Amount of each Receivable that became a Purchased Receivable during such
Collection Period, (e) partial prepayments on Precomputed Receivables relating to refunds of
extended warranty protection plan costs or of physical damage, credit life or disability insurance
policy premiums, but only if such costs or premiums were financed by the respective Obligors
thereon as of the date of the original contract and only to the extent not included under clause
(a) above, and (f) on the Final Scheduled Distribution Date, any amounts advanced by the Servicer
on such Final Scheduled Distribution Date with respect to principal on the Receivables: provided,
however, that in calculating the Regular Principal Distribution Amount the following will be
excluded: (i) amounts received on Precomputed Receivables to the extent that the Servicer has
previously made an unreimbursed Precomputed Advance of principal, (ii) Liquidation Proceeds with
respect to a particular Precomputed Receivable to the extent of any unreimbursed Precomputed
Advances of principal, (iii) all payments and proceeds (including Liquidation Proceeds) of any
Purchased Receivables the Purchase Amount of which has been included in the Principal Distribution
Amount in a prior Collection Period, and (iv) Recoveries.

          “Reserve Account” means the account designated as such, established and maintained pursuant to
Section 5.01(a)(iv).

          “Reserve Account Initial Deposit” means an amount equal to the Specified Reserve Account
Balance on the Closing Date (which is
equal to
$                 ).

          “Scheduled Payment” on a Precomputed Receivable means that portion of the payment required to
be made by the Obligor during each Collection Period sufficient to amortize the Principal Balance
under the actuarial method over the term of the Receivable and to provide interest at the APR.

          “Seller” means, with respect to any Receivable, the Person from whom such Receivable was
acquired by the Company pursuant to
the related Receivables Purchase Agreement.

          “Servicer” means                     , as the Servicer of the Receivables, and each
successor to                      pursuant to Section 7.03
or 8.02.

          “Servicer Default” means an event specified in Section 8.01.

          “Servicer’s Certificate” means an Officers’ Certificate of the Servicer delivered pursuant to
Section 4.09.

          “Servicing Fee” means the fee payable to the Servicer for services rendered during each
Collection Period, determined pursuant to
Section 4.08.

          “Servicing Fee Rate” means ___% per annum.

          “Simple Interest Advance” means the amount of interest, as of the close of business on the
last day of a Collection Period, that the Servicer is required to advance on the Simple Interest
Receivables pursuant to Section 5.04(b).

          “Simple Interest Method” means the method of allocating a fixed level payment to principal and
interest, pursuant to which the portion of such payment that is allocated to interest is equal to
the product of the fixed rate of interest multiplied by the unpaid principal balance multiplied by
the period of time elapsed since the preceding payment of interest was made and the remainder of
such payment is allocable to principal.

          “Simple Interest Receivable” means any Receivable under which the portion of a payment
allocable to interest and the portion allocable to principal is determined in accordance with the
Simple Interest Method.

          “Specified Reserve Account Balance” means [state formula].

          “Total Distribution Amount” means, for each Distribution Date, the sum of the Interest
Distribution Amount and the Regular Principal
Distribution Amount (other than the portion thereof attributable to Realized Losses).

 

 

          “Trust” means the Issuer.

          “Trust Account Property” means the Trust Accounts, all amounts and investments held from time
to time in any Trust Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities or otherwise), including the Reserve Account
Initial Deposit, and all proceeds of the foregoing.

          “Trust Accounts” has the meaning assigned thereto in Section 5.01.

          “Trust Agreement” means the Amended and Restated Trust Agreement dated as of                     ,
between the Company and the Owner Trustee.

          “Trust Officer” means, in the case of the Indenture Trustee, any Officer within the Corporate
Trust Office of the Indenture Trustee, including any Vice President, Assistant Vice President,
Secretary, Assistant Secretary or any other officer of the Indenture Trustee customarily performing
functions similar to those performed by any of the above designated officers and also, with respect
to a particular matter, any other officer to whom such matter is referred because of such officer’s
knowledge of and familiarity with the particular subject and, with respect to the Owner Trustee,
any officer in the Corporate Trust Administration Department of the Owner Trustee with direct
responsibility for the administration of the Trust Agreement and the Basic Documents on behalf of
the Owner Trustee.

     Section 1.02 Other Definitional Provisions.

          (a) Capitalized terms used and not otherwise defined herein have the meanings assigned to them
in the Indenture.

          (b) All terms defined in this Agreement shall have the defined meanings when used in any
certificate or other document
made or delivered pursuant hereto unless otherwise defined therein.

          (c) As used in this Agreement and in any certificate or other document made or delivered
pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such
certificate or other document, and accounting terms partly defined in this Agreement or in any such
certificate or other document to the extent not defined, shall have the respective meanings given
to them under United States generally accepted accounting principles. To the extent that the
definitions of accounting terms in this Agreement or in any such certificate or other document are
inconsistent with the meanings of such terms under United States generally accepted accounting
principles, the definitions contained in this Agreement or in any such certificate or other
document shall control.

          (d) The words “hereof”, “herein”, “hereunder” and words of similar import when used in this
Agreement shall refer to this Agreement as a whole and not to any particular provision of this
Agreement; Article, Section, Schedule and Exhibit references contained in this Agreement are
references to Articles, Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; and the term “including” shall mean “including without limitation”.

          (e) The definitions contained in this Agreement are applicable to the singular as well as the
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

          (f) Any agreement, instrument or statute defined or referred to herein or in any instrument or
certificate delivered in connection herewith means such agreement, instrument or statute as from
time to time amended, modified or supplemented and includes (in the case of agreements or
instruments) references to all attachments thereto and instruments incorporated therein; references
to a Person are also to its permitted successors and assigns.

 

 

ARTICLE II

Conveyance of Receivables

     Section 2.01 Conveyance of Receivables. In consideration of the Owner Trustee’s delivery on
the Closing Date to or upon the order of the Company of
$                 , the Company does hereby sell, transfer,
assign, set over and otherwise convey to the Issuer, without recourse (subject to the obligations
as set forth herein), all right, title and interest of the Company in and to:

          (a) the Receivables and all moneys due thereon on and after the Cutoff Date, in the case of
Precomputed Receivables, and all moneys received thereon on and after the Cutoff Date, in the case
of Simple Interest Receivables;

          (b) the security interest in the Financed Vehicles granted by Obligors pursuant to the
Receivables and any other

          interest of the Company in such Financed Vehicles;

          (c) any proceeds with respect to the Receivables from claims on any physical damage, theft,
credit life or disability

          insurance policies covering Financed Vehicles or Obligors;

          (d) any Financed Vehicle that shall have secured any such Receivable and shall have been
acquired by or on behalf of the
Company, the Servicer or the Issuer; and

          (e) the proceeds of any and all of the foregoing.

ARTICLE III

The Receivables

     Section 3.01 Representations and Warranties of the Company with Respect to the Receivables.
The Company makes the following representations and warranties as to the Receivables conveyed by it
to the Issuer, on which the Issuer is deemed to have relied in acquiring the Receivables. Such
representations and warranties speak as of the execution and delivery of this Agreement and as of
the Closing Date, but shall survive the sale, transfer and assignment of the Receivables to the
Issuer and the pledge thereof to the Indenture Trustee pursuant to the Indenture.

          (a) Characteristics of Receivables. Each Receivable (1) was originated by the Seller thereof
or purchased from a motor vehicle dealer or another financial institution by such Seller in the
ordinary course of such Seller’s business, (2) has created a valid, subsisting and enforceable
first priority security interest in favor of the Seller in the Financed Vehicle, which security
interest is assignable by the Seller to the Company, by the Company to the Issuer and by the Issuer
to the Indenture Trustee, (3) contains customary and enforceable provisions such that the rights
and remedies of the holder thereof are adequate for realization against the collateral of the
benefits of the security, (4) provides for level monthly payments (provided, that the payment in
the first or last month in the life of the Receivable may be minimally different from the level
payments) that fully amortize the Amount Financed by maturity and yield interest at the Annual
Percentage Rate, and (5) in the case of a Precomputed Receivable, in the event that such contract
is prepaid, provides for a prepayment that fully pays the Principal Balance and includes accrued
but unpaid interest through the date of prepayment at the Annual Percentage Rate.

          (b) Schedule of Receivables. The information set forth in Schedule I to this Agreement is true
and correct in all material respects as of the opening of business on the Cutoff Date, and no
selection procedures believed to be adverse to the Noteholders or the Certificateholders were
utilized in selecting the Receivables. The computer tape or other listing regarding the Receivables
made available to the Issuer and its assigns is true and correct in all material respects as of the
Cutoff Date.

          (c) Compliance with Law. Each Receivable and the sale of the related Financed Vehicle complied
at the time it was originated or made and at the execution of this Agreement in all material
respects with all requirements of applicable federal, state and local laws and regulations
thereunder, including usury laws, the Federal Truth-in- Lending Act, the Equal Credit Opportunity
Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Federal Trade
Commission Act, the

 

 

Magnuson-Moss Warranty Act, the Federal Reserve Board’s Regulations B and Z, and State adaptations
of the National Consumer Act and of the Uniform Consumer Credit Code, and other consumer credit
laws and equal credit opportunity and disclosure laws.

          (d) Binding Obligation. Each Receivable represents the genuine, legal, valid and binding
payment obligation in writing of the Obligor, enforceable by the holder thereof in accordance with
its terms, subject to applicable bankruptcy, insolvency, reorganization and similar laws now or
hereafter in effect relating to or affecting creditor’s rights generally and to general principles
of equity (whether applied in a proceeding at law or in equity).

          (e) No Government Obligor. None of the Receivables is due from the United States of America or
any State thereof or from any agency, department or instrumentality of the United States of America
or any State.

          (f) Security Interest in Financed Vehicle. Immediately prior to the sale, assignment and
transfer thereof to the Issuer, each Receivable shall be secured by a validly perfected first
security interest in the Financed Vehicle in favor of the related Seller as secured party of all
necessary and appropriate actions have been commenced that would result in the valid perfection of
a first security interest in the Financed Vehicle in favor of the related Seller as secured party.

          (g) Receivables in Force. No Receivable has been satisfied, subordinated or rescinded, nor has
any Financed Vehicle been released from the lien granted by the related Receivable in whole or in
part.

          (h) No Waiver. No provision of a Receivable has been waived in such a manner that the
Receivable fails to meet any other
representation or warranty of the Company with respect thereto.

          (i) No Amendments. No Receivable has been amended such that the amount of the Obligor’s
Scheduled Payments has been increased except for increases resulting from the inclusion of any
premiums for forced placed physical damage insurance covering the Financed Vehicle.

          (j) No Defenses. No facts are known to the Company that would give rise to any right of
defense, nor shall the same
have been asserted or threatened, with respect to any Receivable.

          (k) No Liens. To the best of the Company’ s knowledge, no liens or claims have been filed for
work, labor or materials relating to a Financed Vehicle that are liens prior to, or equal to or
coordinate with, the security interest in the Financed Vehicle granted by any Receivable.

          (l) No Default. No Receivable has a payment that is more than 90 days overdue as of the Cutoff
Date, and, except as permitted in this paragraph, no default, breach, violation or event permitting
acceleration under the terms of any Receivable has occurred; no continuing condition that with
notice or the lapse of time would constitute a default, breach, violation or event permitting
acceleration under the terms of any Receivable has arisen; and the Company has not waived and shall
not waive any of the foregoing.

          (m) Insurance. The related Seller, in accordance with its customary procedures, has determined
that the Obligor has obtained physical damage insurance covering the Financed Vehicle and under
terms of the Receivable the Obligor is required to maintain such insurance.

          (n) Title. It is the intention of the Company that the transfer and assignment herein
contemplated constitute a sale of the Receivables from the Company to the Issuer and that the
beneficial interest in and title to the Receivables not be part of the debtor’s estate in the event
of the filing of a bankruptcy petition by or against the Company. No Receivable has been sold,
transferred, assigned or pledged by the Company to any Person other than the Issuer. Immediately
prior to the transfer and assignment herein contemplated, the Company had good and marketable title
to each Receivable conveyed by it hereunder to the Issuer, free and clear of all Liens and rights
of others and, immediately upon the

 

 

transfer thereof, the Issuer shall have good and marketable title to each Receivable, free and
clear of all Liens and rights of others; and the transfer has been perfected under the UCC.

          (o) Lawful Assignment. No Receivable has been originated in, or is subject to the laws of, any
jurisdiction under which the sale, transfer and assignment of such Receivable or any Receivable
under this Agreement or the Indenture is unlawful, void or voidable.

          (p) All Filings Made. All filings (including UCC filings) necessary in any jurisdiction to
give the Issuer a first perfected ownership interest in the Receivables, and to give the Indenture
Trustee a first perfected security interest therein, shall have been made.

          (q) One Original. There is only one original executed copy of each Receivable.

          (r) Maturity of Receivables. The weighted average remaining term of the Receivables as of the
Cutoff Date is                      months.

          (s) Scheduled Payments. (1) No Receivable has payment that is more than 90 days overdue as of
the Cutoff Date; and (2) no Receivable has a final scheduled payment date that is later than the
Final Scheduled Maturity Date.

          (t) Location of Receivable Files. The Receivable Files are kept at one or more of the
locations listed in Schedule II.

          (u) No Bankruptcies. No Obligor on any Receivable as of the Cutoff Date was noted in the
related Receivable File
as having filed for bankruptcy.

          (v) No Repossessions. No Financed Vehicle securing any Receivable is in repossession status.

          (w) Chattel Paper. Each Receivable constitutes “chattel paper” as defined in the UCC.

          (x) Agreement. The representations and warranties of the Company in Section 6.01 are true and
correct.

          (y) Financing. Approximately ___% of the aggregate principal balance of the Receivables,
constituting ___% of the number of the Receivables as of the Cutoff Date represents financing of
new vehicles and the remainder of the Receivables represents financing of used vehicles; and
approximately ___% of the aggregate principal balance of the Receivables as of the Cutoff Date
represents Precomputed Receivables and the remainder of the Receivables represents Simple Interest
Receivables. The Principal Balance of the Receivables as of the
Cutoff Date is
$                .

          (z) APR. The weighted average Annual Percentage Rate of the Receivables as of the Cutoff Date
is approximately ___%.

     Section 3.02 Repurchase upon Breach. The Company, the Servicer or the Owner Trustee, as the
case may be, shall inform the other parties to this Agreement and the Indenture Trustee promptly,
in writing, upon the discovery of any breach of the Company’s representations and warranties made
pursuant to Section 3.01 or 6.01. Unless any such breach shall have been cured in all material
respects by the last day of the second Collection Period following the discovery thereof (and
notice to the Company) by the Owner Trustee or receipt by the Owner Trustee of written notice from
the Company or the Servicer of such breach, the Company shall be obligated to repurchase any
Receivable materially and adversely affected by any such breach as of such last day (or, at the
Company’s option, the last day of the first Collection Period following the discovery). In
consideration of the repurchase of any such Receivable, the Company shall remit the Purchase
Amount, in the manner specified in Section 5.05. The sole remedy of the Issuer, the Owner Trustee,
the Indenture Trustee, the Noteholders or the Certificateholders with respect to a breach or
representations and warranties pursuant to Section 3.01 and the agreement contained in this Section
shall be to require the Company to repurchase Receivables pursuant to this Section, subject to the
conditions contained herein.

 

 

     Section 3.03 Custody of Receivable Files. To assure uniform quality in servicing the
Receivables and to reduce administrative costs, the Issuer hereby revocably appoints the Servicer,
and the Servicer hereby accepts such appointment, to act for the benefit of the Issuer and the
Indenture Trustee as custodian of the following documents or instruments which are hereby or will
hereby be constructively delivered to the Indenture Trustee, as pledgee of the Issuer as of the
Closing Date:

          (a) the fully executed original of each Receivable;

          (b) a filmed copy of each original credit application as executed by the Obligor;

          (c) the original certificate of title or such documents that the Servicer shall keep on file,
in accordance with its customary procedures, evidencing the security interest of the related Seller
in each Financed Vehicle; and

          (d) any and all other documents that the Servicer shall keep on file, in accordance with its
customary procedures, relating to a Receivable, an Obligor or a Financed Vehicle.

     Section 3.04 Duties of Servicer as Custodian.

          (a) Safekeeping. The Servicer shall hold the Receivable Files as custodian for the benefit of
the Issuer and maintain such accurate and complete accounts, records and computer systems
pertaining to each Receivable File as shall enable the Issuer to comply with this Agreement. In
performing its duties as custodian, the Servicer shall act with reasonable care using that degree
of skill and attention that the Servicer exercises with respect to the Receivable Files relating to
all comparable automotive receivables that the Servicer services for itself or others. The Servicer
shall conduct, or cause to be conducted, periodic audits of the Receivable Files held by it under
this Agreement and of the related accounts, records and computer systems, in such a manner as shall
enable the Issuer or the Indenture Trustee to verify the accuracy of the Servicer’s record keeping.
The Servicer shall promptly report to the Issuer and the Indenture Trustee any failure on its part
to hold the Receivable Files and maintain its accounts, records and computer systems as herein
provided and shall promptly take appropriate action to remedy any such failure. Nothing herein
shall be deemed to require an initial review or any periodic review by the Issuer or the Indenture
Trustee of the Receivables Files.

          (b) Maintenance of and Access to Records. The Servicer shall maintain each Receivable File at
one of its offices specified in Schedule II or at such other office as shall be specified to the
Issuer and the Indenture Trustee by written notice not later than 90 days after any change in
location. The Servicer shall make available to the Issuer and the Indenture Trustee or their
respective duly authorized representatives, attorneys or auditors a list of locations of the
Receivable Files and the related accounts, records and computer systems maintained by the Servicer
at such times during normal business hours as the Issuer or the Indenture Trustee shall instruct.

          (c) Release of Documents. Upon instruction from the Indenture Trustee, the Servicer shall
release any Receivable File to the Indenture Trustee, the Indenture Trustee’s agent or the
Indenture Trustee’s designee, as the case may be, at such place or places as the Indenture Trustee
may designate, as soon as practicable, and upon the release and delivery of any such document in
accordance with the instructions of the Indenture Trustee, the Servicer shall be released from any
further liability and responsibility under this Section 3.04 with respect to such documents unless
and until such time as such documents shall be returned to the Servicer, and in no event shall the
Servicer be responsible for any loss occasioned by the Indenture Trustee’s failure to return any
documents in a timely manner.

          Section 3.05 Instructions; Authority To Act. The Servicer shall be deemed to have received
proper instructions with respect to the Receivable Files upon its receipt of written instructions
signed by a Trust Officer of the Indenture Trustee.

 

 

     Section 3.06 Custodian’s Indemnification. The Servicer as custodian shall indemnify the Trust,
the Owner Trustee and the Indenture Trustee and each of their respective officers, directors,
employees and agents for any and all liabilities, obligations, losses, compensatory damages,
payments, costs or expenses of any kind whatsoever that may be imposed on, incurred by or asserted
against the Trust, the Owner Trustee or the Indenture Trustee or any of their respective officers,
directors, employees and agents as the result of any improper act or omission in any way relating
to the maintenance and custody by the Servicer as custodian of the Receivable Files; provided,
however, that the Servicer shall not be liable to the Owner Trustee for any portion of any such
amount resulting from the willful misfeasance, bad faith or negligence of the Owner Trustee, and
the Servicer shall not be liable to the Indenture Trustee for any portion of any such amount
resulting from the willful misfeasance, bad faith or negligence of the Indenture Trustee.

     Section 3.07 Effective Period and Termination. The Servicer’s appointment as custodian shall
become effective as of the Closing Date and shall continue in full force and effect until
terminated pursuant to this Section. If the Servicer shall resign as Servicer in accordance with
the provisions of this Agreement or if all of the rights and obligations of any Servicer shall have
been terminated under Section 8.01, the appointment of such Servicer as custodian shall be
terminated by the Indenture Trustee or by the Holders of Notes evidencing not less than 25% of the
Outstanding Amount of the Notes or, with the consent of Holders of the Notes evidencing not less
than 25% the Outstanding Amount of the Notes or, with the consent of Holders of the Notes
evidencing not less than 25% of the Outstanding Amount of the Notes, by the Owner Trustee or by
Certificateholders evidencing not less than 25% of the Certificate Balance, in the same manner as
the Indenture Trustee or such Holders may terminate the rights and obligations of the Servicer
under Section 8.01. The Indenture Trustee or, with the consent of the Indenture Trustee, the Owner
Trustee may terminate the Servicer’s appointment as custodian, with cause, at any time upon written
notification to the Servicer, and without cause upon 30 days’ prior written notification to the
Servicer. As soon as practicable after any termination of such appointment, the Servicer shall
deliver the Receivable Files to the Indenture Trustee or the Indenture Trustee’s agent at such
place or places as the Indenture Trustee may reasonably designate. Notwithstanding any termination
of the Servicer as custodian, the Indenture Trustee or Owner Trustee, as applicable, shall provide,
or shall cause its agent to provide, access to the Receivable Files to the Servicer for the purpose
of carrying out its duties and responsibilities with respect to the servicing of the Receivables
hereunder.

ARTICLE IV

Administration and Servicing of Receivables

     Section 4.01 Duties of Servicer. The Servicer, for the benefit of the Issuer (to the extent
provided herein), shall manage, service, administer and make collections on the Receivables (other
than Purchased Receivables) with reasonable care, using that degree of skill and attention that the
Servicer exercises with respect to all comparable automotive receivables that it services for
itself or others. The Servicer’s duties shall include collection and posting of all payments,
responding to inquiries of Obligors on such Receivables, investigating delinquencies, sending
payment coupons to Obligors, reporting tax information to Obligors, accounting for collections,
furnishing monthly and annual statements to the Owner Trustee and the Indenture Trustee with
respect to distributions and making Advances pursuant to Section 5.04. Subject to the provisions of
Section 4.02, the Servicer shall follow its customary standards, policies and procedures in
performing its duties as Servicer. Without limiting the generality of the foregoing, the Servicer
is authorized and empowered to execute and deliver, on behalf of itself, the Issuer, the Owner
Trustee, the Indenture Trustee, the Certificateholders and the Noteholders or any of them, any and
all instruments of satisfaction

 

 

or cancellation, or partial or full release or discharge, and all other comparable instruments,
with respect to the Receivables or to the Financed Vehicles securing such Receivables. If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuer (in the case of a
Receivable other than a Purchased Receivable) shall thereupon be deemed to have automatically
assigned, solely for the purpose of collection, such Receivable to the Servicer. If in any
enforcement suit or legal proceeding it shall be held that the Servicer may not enforce a
Receivable on the ground that it shall not be a real party in interest or a holder entitled to
enforce such Receivable, the Owner Trustee shall, at the Servicer’s expense and direction, take
steps to enforce such Receivable, including bringing suit in its name or the name of the Owner
Trustee, the Indenture Trustee, the Certificateholders or the Noteholders. The Owner Trustee shall
upon the written request of the Servicer furnish the Servicer with any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

     Section 4.02 Collection and Allocation of Receivable Payments. The Servicer shall make
reasonable efforts to collect all payments called for under the terms and provisions of the
Receivables as and when the same shall become due and shall follow such collection procedures as it
follows with respect to all comparable automotive receivables that it services for itself or
others. The Servicer shall allocate collections between principal and interest in accordance with
the customary servicing procedures it follows with respect to all comparable automotive receivables
that it services for itself or others. The Servicer may grant extensions, rebates or adjustments on
Receivable, which shall not, for the purposes of this Agreement, modify the original due dates or
amounts of the Scheduled Payments on a Precomputed Receivable or the original due dates or amounts
of the originally scheduled payments of interest on Simple Interest Receivables; provided, however,
that if the Servicer extends the date for final payment by the Obligor of any Receivable beyond the
Final Scheduled Maturity Date, it shall promptly repurchase the Receivable from the Issuer in
accordance with the terms of Section 4.07. The Servicer may in its discretion waive any late
payment charge or any other fees that may be collected in the ordinary course of servicing a
Receivable. The Servicer shall not agree to any alteration of the interest rate on any Receivable
or of the amount of any Scheduled Payment on Precomputed Receivables or the originally Scheduled
Payments on Simple Interest Receivables.

     Section 4.03 Realization upon Receivables. On behalf of the Issuer, the Servicer shall use its
best efforts, consistent with its customary servicing procedures, to repossess or otherwise convert
the ownership of the Financed Vehicle securing any Receivable as to which the Servicer shall have
determined eventual payment in full is unlikely. The Servicer shall follow such customary and usual
practices and procedures as it shall deem necessary or advisable in its servicing of automotive
receivables, which may include reasonable efforts to realize upon any recourse to Dealers and
selling the Financed Vehicle at public or private sale. The Servicer shall be entitled to recover
all out-of-pocket expenses incurred by it in the course of converting a Financed Vehicle into cash
proceeds. The foregoing shall be subject to the provision that, in any case in which the Financed
Vehicle shall have suffered damage, the Servicer shall not expend funds in connection with the
repair or the repossession of such Financed Vehicle unless it shall determine in its discretion
that such repair and/or repossession will increase the Liquidation Proceeds by an amount greater
than the amount of such expenses.

     Section 4.04 Physical Damage Insurance. The Servicer shall, in accordance with its customary
servicing procedures, require that each Obligor shall have obtained physical damage insurance
covering the Financed Vehicle as of the execution of the Receivable.

     Section 4.05 Maintenance of Security Interests in Financed Vehicles. The Servicer shall, in
accordance with its customary

 

 

servicing procedures, take such steps as are necessary to maintain perfection of the security
interest created by each Receivable in the related Financed Vehicle. The Servicer is hereby
authorized to take such steps as are necessary to re-perfect such security interest on behalf of
the Issuer and the Indenture Trustee in the event of the relocation of a Financed Vehicle or for
any other reason. In the event that the assignment of a Receivable to the Trust is insufficient,
without a notation on the related Financed Vehicle’s certificate of title, to grant to the Trust a
first perfected security interest in the relaxed Financed Vehicle, the Servicer hereby agrees to
serve as the agent of the Trust for the purposes of perfecting the security interest in such
Financed Vehicle and that the Servicer’s listing as the secured party on the certificate of title
is in its capacity as agent of the Trust.

     Section 4.06 Covenants of Servicer. The Servicer shall not release the Financed Vehicle
securing any Receivable from the security interest granted by such Receivable in whole or in part
except in the event of payment in full by the Obligor thereunder or repossession, nor shall the
Servicer impair the rights of the Issuer, the Indenture Trustee, the Certificateholders or the
Noteholders in such Receivable, nor shall the Servicer increase the number of scheduled payments
due under a Receivable.

     Section 4.07 Purchase of Receivables upon Breach. The Servicer or the Owner Trustee shall
inform the other party and the Indenture Trustee and the Company promptly, in writing, upon the
discovery of any breach pursuant to Section 4.02, 4.05 or 4.06 that materially and adversely
affects the interests of the Trust in any Receivable. Unless the breach shall have been cured by
the last day of the second Collection Period following such discovery (or, at the Servicer’s
election, the last day of the first following Collection Period), the Servicer shall purchase, as
of such last day, any Receivable that is materially and adversely affected by such breach. In
consideration of the purchase of any such Receivable pursuant to either of the two preceding
sentences, the Servicer shall remit the Purchase Amount in the manner specified in Section 5.05.
For purposes of this Section, the Purchase Amount shall consist in part of a release by the
Servicer of all rights of reimbursement with respect to Outstanding Precomputed Advances and
Outstanding Simple Interest Advances on the Receivable. The sole remedy of the Issuer, the Owner
Trustee, the Indenture Trustee, the Certificateholders or the Noteholders with respect to a breach
pursuant to Section 4.02, 4.05 or 4.06 shall be to require the Servicer to purchase Receivables
pursuant to this Section. The Owner Trustee shall have no duty to conduct any affirmative
investigation as to the occurrence of any condition requiring the repurchase of any Receivable
pursuant to this Section.

     Section 4.08 Servicing Fee. As compensation for servicing the Receivables, the Servicer shall
be entitled to receive the Servicing Fee on each Distribution Date, from the Interest Distribution
Amount available on such Distribution Date, in an amount equal to the product of (a) one-twelfth,
(b) the Servicing Fee Rate and (c) the Pool Balance as of the first day of the preceding Collection
Period. The Servicer shall also be entitled to all late fees, prepayment charges (including, in the
case of a Receivable that provides for payments according to the “Rule of 78s” and that is prepaid
in full, the difference between the Principal Balance of such Receivable (plus accrued interest to
the date of prepayment) and the principal balance of such Receivable computed according to the
“Rule of 78s”), and other administrative fees or similar charges allowed by applicable law with
respect to the Receivables, collected (from whatever source) on the Receivables, as and when
collected, plus any reimbursement pursuant to the last paragraph of Section 7.02.

     Section 4.09 Servicer’s Certificate. Not later than 11:00 a.m. (New York time) on each Payment
Determination Date, the Servicer shall deliver to the Owner Trustee, each Paying Agent, the
Indenture Trustee and the Company, with a copy to the Rating Agencies, a Servicer’s Certificate
containing all information necessary to make the distributions to be made on the related
Distribution Date pursuant to Section 5.06 and 5.07 for the

 

 

related Collection Period. Receivables to be purchased by the Servicer or to be repurchased by the
Company shall be identified by the Servicer by account number with respect to such Receivable (as
specified in Schedule I).

     Section 4.10 Annual Statement as to Compliance; Notice of Default. (a) The Servicer shall
deliver to the Owner Trustee and the Indenture Trustee, on or before March 15th of each year
beginning                     , 200     , an Officers’ Certificate of the Servicer
providing such information as is required under Item 1123 of Regulation AB. The Indenture Trustee
shall send a copy of such certificate and the report referred to in Section 4.11 to the Rating
Agencies. A copy of such certificate and the report referred to in Section 4.11 may be obtained by
any Certificateholder, Certificate Owner, Noteholder or Note Owner by a request in writing to the
Owner Trustee addressed to the Corporate Trust Office. Upon the telephone request of the Owner
Trustee, the Indenture Trustee will promptly furnish the Owner Trustee a list of Noteholders as of
the date specified by the Owner Trustee.

          (b) The Servicer shall deliver to the Owner Trustee, the Indenture Trustee and the Rating
Agencies, promptly after having obtained knowledge thereof, but in no event later than five (5)
Business Days thereafter, written notice in an Officers’ Certificate of any event which with the
giving of notice or lapse of time, or both, would become a Servicer Default under Section 8.01(a)
or (b).

          (c) The Servicer will deliver to the Owner Trustee, on or before March 15th of each year
beginning                     , 200  , a report regarding the Servicer’s assessment
of compliance with the applicable servicing criteria specified in Item 1122 of Regulation AB during
the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange
Act and Item 1122 of Regulation AB.

     Section 4.11 Annual Independent Certified Public Accountants’ Report. The Servicer shall cause
a firm of independent certified public accountants, which may also render other services to the
Servicer or any Affiliate of the Servicer, to deliver to the Owner Trustee and the Indenture
Trustee on or before March 15th of each year beginning                     , a report that
attests to, and reports on, the Servicer’s assessment delivered pursuant to Section
4.10(c), which attestation report shall be made in accordance with the requirements of Rule
15d-18 under the Exchange Act and Item 1122(b) of Regulation AB.

     Section 4.12 Access to Certain Documentation and Information Regarding Receivables. The
Servicer shall provide to the Certificateholders and Noteholders access to the Receivable Files in
such cases where the Certificateholders or Noteholders shall be required by applicable statutes or
regulations to review such documentation. Access shall be afforded without charge, but only upon
reasonable request and during the normal business hours at the respective offices of the Servicer.
Nothing in this Section shall affect the obligation of the Servicer to observe any applicable law
prohibiting disclosure of information regarding the Obligors and the failure of the Servicer to
provide access to information as a result of such obligation shall not constitute a breach of this
Section.

 

 

     Section 4.13 Servicer Expenses. The Servicer shall be required to pay all expenses incurred by
it in connection with its activities hereunder, including fees and disbursements of independent
accountants, taxes imposed on the Servicer and expenses incurred in connection with distributions
and reports to Certificateholders and Noteholders.

     Section 4.14 Appointment of Subservicer. The Servicer may at any time appoint a subservicer to
perform all or any portion of its obligations as Servicer hereunder; provided, however, that the
Rating Agency Condition shall have been satisfied in connection therewith; and provided, further,
that the Servicer shall remain obligated and be liable to the Issuer, the Owner Trustee, the
Indenture Trustee, the Certificateholders and the Noteholders for the servicing and administering
of the Receivables in accordance with the provisions hereof without diminution of such obligation
and liability by virtue of the appointment of such subservicer and to the same extent and under the
same terms and conditions as if the Servicer alone were servicing and administering the
Receivables. The fees and expenses of the subservicer shall be as agreed between the Servicer and
its subservicer from time to time, and none of the Issuer, the Owner Trustee, the Indenture
Trustee, the Certificateholders or the Noteholders shall have any responsibility therefor.

     Section 4.15 Compliance with Regulation AB. The Servicer agrees to perform all duties and
obligations applicable to or required of the Issuer set forth in Appendix A attached hereto and
made a part hereof in all respects and makes the representations and warranties therein applicable
to it.

ARTICLE V

Distributions; Reserve Account; Statements to Certificateholders

and Noteholders

     Section 5.01 Establishment of Trust Accounts. (a) (i) The Servicer, for the benefit of the
Noteholders and the Certificateholders, shall establish and maintain in the name of the Indenture
Trustee an Eligible Deposit Account (the “Collection Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the Noteholders and the
Certificateholders.

     (ii) The Servicer, for the benefit of the Noteholders, shall establish and maintain in the
name of the Indenture Trustee an Eligible Deposit Account (the “Note Distribution Account”),
bearing a designation clearly indicating that the funds deposited therein are held for the benefit
of the Noteholders.

     (iii) The Servicer, for the benefit of the Noteholders and the Certificateholders, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit Account (the
“Reserve Account”), bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Noteholders and the Certificateholders.

     (b) Funds on deposit in the Collection Account, the Note Distribution Account and the Reserve
Account (collectively the “Trust Accounts”) shall be invested (1) by the Indenture Trustee in
Eligible Investments selected in writing by the Servicer or an investment manager selected by the
Servicer, which investment manager shall have agreed to comply with the terms of this Agreement as
it relates to investing such funds or (2) by an investment manager in Eligible Investments selected
by such investment manager, provided that (A) such investment manager shall be selected by the
Servicer, (B) such investment manager shall have agreed to comply with the terms of this Agreement
as it relates to investing such funds, (C) any investment so selected by such investment manager
shall be made in the name of the Indenture Trustee and shall be settled by a Delivery to the
Indenture Trustee that complies with the terms of this Agreement as it relates to investing such
funds, and (D) prior to the settlement of any investment so selected by such investment manager the
Indenture Trustee shall affirm that such investment is an Eligible Investment. It is understood and
agreed that the Indenture Trustee shall

 

 

not be liable for any loss arising from an investment in Eligible Investments made in accordance
with this Section 5.01(b). All such Eligible Investments shall be held by the Indenture Trustee for
the benefit of the Noteholders and the Certificateholders or the Noteholders, as applicable;
provided, that on each Payment Determination Date all interest and other investment income (net of
losses and investment expenses) on funds on deposit in the Trust Accounts shall be deposited into
the Collection Account and shall be deemed to constitute a portion of the Interest Distribution
Amount for the related Distribution Date. Unless otherwise permitted by the Rating Agencies, funds
on deposit in the Collection Account, the Reserve Account and the Note Distribution Account shall
be invested in Eligible Investments that will mature (A) not later than the Business Day
immediately preceding the next Distribution Date or (B) on such next Distribution Date if either
(x) such investment is held in the trust department of the institution with which the Collection
Account, the Reserve Account, the Note Distribution Account or the Certificate Distribution
Account, as applicable, is then maintained and is invested in a time deposit of                     
rated at least A-1 by Standard & Poor’s and P-1 by Moody’s (such account being maintained
within the trust department of                     ) or (y) the Indenture Trustee (so long
as the short-term unsecured debt obligations of the Indenture Trustee are either (i) rated at least
P-1 by Moody’s and A-1 by Standard & Poor’s on the date such investment is made or (ii) guaranteed
by an entity whose short-term unsecured debt obligations are rated at least P-1 by Moody’s and A-1
by Standard & Poor’s on the date such investment is made) has agreed to advance funds on such
Distribution Date to the Note Distribution Account and the Certificate Distribution Account in the
amount payable on such investment on such Distribution Date pending receipt thereof to the extent
necessary to make distributions on such Distribution Date. The guarantee referred to in clause (y)
of the preceding sentence shall be subject to the Rating Agency Condition. For the purpose of the
foregoing, unless the Indenture Trustee affirmatively agrees in writing to make such advance with
respect to such investment prior to the time an investment is made, it shall not be deemed to have
agreed to make such advance. Funds deposited in a Trust Account on a day which immediately precedes
a Distribution Date upon the maturity of any Eligible Investments are not required to be invested
overnight.

     (c) (i) The Indenture Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Trust Accounts and in all proceeds thereof (including all income
thereon) and all such funds, investments, proceeds and income shall be part of the Trust Estate.
The Trust Accounts shall be under the sole dominion and control of the Indenture Trustee for the
benefit of the Noteholders and the Certificateholders, as the case may be. If, at any time, any of
the Trust Accounts ceases to be an Eligible Deposit Account, the Indenture Trustee (or the Servicer
on its behalf) shall within 10 Business Days (or such longer period, not to exceed 30 calendar
days, as to which each Rating Agency may consent) establish a new Trust Account as an Eligible
Deposit Account and shall transfer any cash and/or any investments to such new Trust Account.

     (ii) With respect to the Trust Account Property, the Indenture Trustee agrees, by its
acceptance hereof, that:

     (A) any Trust Account Property that is held in deposit accounts shall be held solely in the
Eligible Deposit Accounts, subject to the last sentence of Section 5.01(c)(i); and each such
Eligible Deposit Account shall be subject to the exclusive custody and control of the Indenture
Trustee, and the Indenture Trustee shall have sole signature authority with respect thereto;

     (B) any Trust Account Property that constitutes Physical Property shall be delivered to the
Indenture Trustee in accordance with paragraph (a) of the

 

 

definition of “Delivery” and shall be held, pending maturity or disposition, solely by the
Indenture Trustee or a financial intermediary (as such term is defined in Section 8-313(4)) of the
UCC acting solely for the Indenture Trustee;

     (C) any Trust Account Property that is a book-entry security held through the Federal Reserve
System pursuant to Federal book-entry regulations shall be delivered in accordance with paragraph
(b) of the definition of “Delivery” and shall be maintained by the Indenture Trustee, pending
maturity or disposition, through continued book-entry registration of such Trust Account Property
as described in such paragraph; and

     (D) any Trust Account Property that is an “uncertificated security” under Article VIII of the
UCC and that is not governed by clause (C) above shall be delivered to the Indenture Trustee in
accordance with paragraph (c) of the definition of “Delivery” and shall be maintained by the
Indenture Trustee, pending maturity or disposition, through continued registration of the Indenture
Trustee’s (or its nominee’s) ownership of such security.

               (iii) The Servicer shall have the power, revocable by the Indenture Trustee or by the Owner
Trustee with the consent of the Indenture Trustee, to instruct the Indenture Trustee to make
withdrawals and payments from the Trust Accounts for the purpose of permitting the Servicer or the
Owner Trustee to carry out its respective duties hereunder or permitting the Indenture Trustee to
carry out its duties under the Indenture.

          Section 5.02 Collections. The Servicer shall remit within two Business Days of receipt thereof
to the Collection Account all payments by or on behalf of the Obligors with respect to the
Receivables (other than Purchased Receivables) and all Liquidation Proceeds, both as collected
during the Collection Period. Notwithstanding the foregoing, for so
long as (i) remains the Servicer, (ii) no Servicer Default shall have occurred and be continuing and
(iii)(x)                      maintains a short-term rating of at least A-1 by Standard &
Poor’s and P-1 by Moody’s (and for five Business Days following a reduction in either such rating)
or (y) prior to ceasing daily remittances, the Rating Agency Condition shall have been satisfied
(and any conditions or limitations imposed by the Rating Agencies in connection therewith are
complied with), the Servicer may remit such collections with respect to the preceding calendar
month to the Collection Account on a less frequent basis, but in no event later than the Payment
Determination Date immediately preceding each Distribution Date. For purposes of this Article V the
phrase “payments by or on behalf of Obligors” shall mean payments made with respect to the
Receivables by Persons other than the Servicer.

          Section 5.03 Application of Collections. All collections for the Collection Period shall be
applied by the Servicer as follows:

     With respect to each Receivable (other than a Purchased Receivable), payments by or on behalf
of the Obligor shall be applied first, in the case of Precomputed Receivables, to reduce
Outstanding Precomputed Advances as described in Section 5.04(a) and, in the case of Simple
Interest Receivables, to reduce Outstanding Simple Interest Advances to the extent described in
Section 5.04(b). Next, any excess shall be applied, in the case of Precomputed Receivables, to the
Scheduled Payment and, in the case of Simple Interest Receivables, to interest and principal in
accordance with the Simple Interest Method. With respect to Precomputed Receivables, any remaining
excess shall be added to the Payahead Balance, and shall be applied to prepay the Precomputed
Receivable, but only if the sum of such excess and the previous Payahead Balance shall be
sufficient to prepay the

 

 

Receivable in full. Otherwise, any such remaining excess payments shall constitute a Payahead and
shall increase the Payahead Balance.

If the Servicer is required to return a Payahead to the related Obligor, the amount to be returned
shall be retained by the Servicer from collections on the Receivables allocable to principal and
paid by the Servicer to such Obligor.

     Section 5.04 Advances. (a) As of the close of business on the last day of each Collection
Period, if the payments by or on behalf of the Obligor on a Precomputed Receivable (other than a
Purchased Receivable) shall be less than the Scheduled Payment, the Payahead Balance shall be
applied by the Servicer to the extent of the shortfall and such Payahead Balance shall be reduced
accordingly. Next, the Servicer shall advance any remaining shortfall (such amount, a “Precomputed
Advance”), to the extent that the Servicer, at its sole discretion, shall determine that the
Precomputed Advance shall be recoverable from the Obligor, the Purchase Amount, Liquidation
Proceeds or proceeds of any other Precomputed Receivables. With respect to each Precomputed
Receivable, the Precomputed Advance shall increase Outstanding Precomputed Advances. Outstanding
Precomputed Advances shall be reduced by subsequent payments by or on behalf of the Obligor,
collections of Liquidation Proceeds in respect of such Precomputed Receivables or payments of the
Purchase Amount with respect to such Precomputed Receivables.

     If the Servicer shall determine that an Outstanding Precomputed Advance with respect to any
Precomputed Receivable shall not be recoverable as aforesaid, the Servicer shall be reimbursed from
any collections made on other Precomputed Receivables in the Trust and Outstanding Precomputed
Advances with respect to such Precomputed Receivables shall be reduced accordingly.

          (b) As of the close of business on the last day of each Collection Period, the Servicer shall
advance an amount equal to the amount of interest due on the Simple Interest Receivables at their
respective APR’s for the related Collection Period (assuming the Simple Interest Receivables pay on
their respective due dates) minus the amount of interest actually received on the Simple Interest
Receivables during the related Collection Period (such amount, a “Simple Interest Advance”). With
respect to each Simple Interest Receivable, the Simple Interest Advance shall increase Outstanding
Simple Interest Advances. If such calculation results in a negative number, an amount equal to such
negative number shall be paid to the Servicer and the amount of Outstanding Simple Interest
Advances shall be reduced by such amount. In addition, in the event that a Simple Interest
Receivable becomes a Liquidated Receivable, Liquidation Proceeds with respect to such Simple
Interest Receivable attributable to accrued and unpaid interest thereon (but not including interest
for the then current Collection Period) shall be paid to the Servicer to reduce Outstanding Simple
Interest Advances, but only to the extent of any Outstanding Simple Interest Advances.

     Section 5.05 Additional Deposits. The Servicer shall deposit in the Collection Account on the
Payment Determination Date for the related Collection Period the aggregate Advances pursuant to
Section 5.04. To the extent that the Servicer fails to make a Simple Interest Advance pursuant to
Section 5.04(b) on the date required, the Servicer shall notify the Indenture Trustee to withdraw
such amount (or, if determinable, such portion of such amount as does not represent advances for
delinquent interest) from the Reserve Account and deposit such amount in the Collection Account.
The Servicer and the Company shall deposit or cause to be deposited in the Collection Account the
aggregate Purchase Amount with respect to Purchased Receivables and the Servicer shall deposit
therein all amounts to be paid under Section 9.01. The Servicer will deposit the aggregate Purchase
Amount with respect to Purchased Receivables when such obligations are due, unless the Servicer
shall not be required to make daily deposits pursuant to Section 5.02. All such other deposits
shall be made on the Payment Determination Date for the related Collection Period.

 

 

          Section 5.06 Distributions. (a) So long as (i) the long-term unsecured indebtedness of the
Servicer is rated Baa3 or better by Moody’s or (ii) the Rating Agency Condition is otherwise
satisfied, the Servicer will be entitled to receive the payment of the Servicing Fee in respect of
a Collection Period (and all unpaid Servicing Fees from prior Collection Periods) at the beginning
of each Collection Period from payments on the Receivables received during such Collection Period.

          (i) On each Payment Determination Date, the Servicer shall calculate all amounts required to
be deposited in the Note Distribution Account and the Certificate Distribution Account.

          (ii) On each Distribution Date, the Servicer shall instruct the Indenture Trustee (based on
the information contained in the Servicer’s Certificate delivered on the related Payment
Determination Date pursuant to Section 4.09) to make the following deposits and distributions for
receipt by the Servicer or deposit in the applicable account by 11:00 a.m. (New York time), to the
extent of the Total Distribution Amount, in the following order of priority:

               (A) to the extent the Servicer has not received the payment of the Servicing Fee at the
beginning of the related Collection Period pursuant to clause (a) above, to the Servicer, from the
Interest Distribution Amount, the Servicing Fee (and all unpaid Servicing Fees from prior
Collection Periods);

               (B) to the Note Distribution Account, from the Total Distribution Amount remaining after the
application of Section 5.06(a) and clause (A), the Noteholders’ Interest Distributable Amount;

               (C) to the Note Distribution Account, from the Total Distribution Amount remaining after the
application of Section 5.06(a) and clauses (A) and (B), the Noteholders’ Principal Distributable
Amount;

               (D) to the Certificate Distribution Account, from the Total Distribution Amount remaining
after the application of Section 5.06(a) and clauses (A) through (C), the Certificateholders’
Interest Distributable Amount;

               (E) to the Certificate Distribution Account, from the Total Distribution Amount remaining
after the application of Section 5.06(a) and clauses (A) through (D), the Certificateholders’
Principal Distributable Amount;

               (F) to the Reserve Account, from the Total Distribution Amount remaining after the application
of Section 5.06(a) and clauses (A) through (E) (it being understood that the Acceleration Principal
Distribution Amount is a function of and subject to the amount required to be deposited in the
Reserve Account pursuant to this clause (F)), the amount, if any, necessary to reinstate the
balance in the Reserve Account up to the Specified Reserve Account Balance; and

               (G) to the Reserve Account, the portion, if any, of the Total Distribution Amount remaining
after the application of Section 5.06(a) and clauses (A) through (F).

          Notwithstanding that the Notes have been paid in full, the Indenture Trustee shall continue to
maintain the Collection Account hereunder until the Certificate Balance is reduced to zero.

          Section 5.07 Reserve Account. (a) On the Closing Date, the Owner Trustee will deposit, on
behalf of the Company, the Reserve Account Initial Deposit into the Reserve Account from the net
proceeds of the sale of the Notes and the Certificates.

 

 

          (b) (i) After giving effect to clause (ii) below, if the amount on deposit in the Reserve
Account on any Distribution Date (after giving effect to all deposits thereto or withdrawals
therefrom on such Distribution Date) is greater than the Specified Reserve Account Balance for such
Distribution Date, the Servicer shall instruct the Indenture Trustee to distribute the amount of
such excess to the Company.

     (ii) On each Distribution Date subsequent to any reduction or withdrawal by any Rating Agency
of its rating of any Class of Notes, unless such rating has been restored, if the amount on deposit
in the Reserve Account (taking into account any deposits therein pursuant to Section 5.06(b) and
withdrawals therefrom on such date pursuant to Section 5.07(c), (d) or (e)) is greater than the
Specified Reserve Account Balance for such Distribution Date, then the Servicer shall instruct the
Indenture Trustee to include the amount of such excess in the Noteholders’ Monthly Principal
Distribution Amount and to deposit the amount of such excess (up to the amount of cash or cash
equivalents in the Reserve Account) to the Collection Account for deposit to the Note Distribution
Account for distribution to Noteholders as an accelerated payment of principal on such Distribution
Date; provided, that the amount of such deposit shall not exceed the outstanding principal balance
of the Notes after giving effect to all other payments of principal to be made on such date.

          (c) If the Servicer determines pursuant to Section 5.04 that it is required to make an Advance
on a Payment Determination Date and does not do so from its own funds, the Servicer shall instruct
the Indenture Trustee to withdraw funds from the Reserve Account and deposit them in the Collection
Account to cover any shortfall. Such payment shall be deemed to have been made by the Servicer
pursuant to Section 5.04 for purposes of making distributions pursuant to this Agreement, but shall
not otherwise satisfy the Servicer’s obligation to deliver the amount of the Advances, and the
Servicer shall within two Business Days replace any funds in the Reserve Account so used.

          (d) (i) In the event that the Noteholders’ Distributable Amount for a Distribution Date
exceeds the sum of the amounts deposited into the Note Distribution Account pursuant to Section
5.06(b)(ii)(B) and (C) on such Distribution Date, the Servicer shall instruct the Indenture Trustee
to withdraw from the Reserve Account on such Distribution Date an amount equal to such excess, to
the extent of funds available therein up to the Available Amount, and deposit such amount into the
Note Distribution Account.

     In the event that the Noteholders’ Principal Distributable Amount on the Class A-1 Final
Scheduled Distribution Date or the Class A-2 Final Scheduled Distribution Date exceeds the amount
deposited into the Note Distribution Account pursuant to Section 5.06(b)(ii)(C) on such
Distribution Date, the Servicer shall instruct the Indenture Trustee to withdraw from the Reserve
Account on such Distribution Date an amount equal to such excess, to the extent of funds available
therein up to the Available Amount, and deposit such amount into the Note Distribution Account.

          (e) (i) In the event that the Certificateholders’ Distributable Amount for a Distribution Date
exceeds the sum of the amounts deposited into the Certificate Distribution Account pursuant to
Section 5.06(b)(ii)(D) and (E) on such Distribution Date, the Servicer shall instruct the Indenture
Trustee to withdraw from the Reserve Account on such Distribution Date an amount equal to such
excess, to the extent of funds available therein up to the Available Amount after giving effect to
paragraphs (c) and (d) above, and deposit such amount into the Certificate Distribution Account on
such Distribution Date.

     (ii) In the event that the Certificateholders’ Monthly Interest Distributable Amount for a
Distribution Date exceeds the amount deposited in the Certificate Distribution Account pursuant to
Section 5.06(b)(ii)(D), the Servicer shall

 

 

instruct the Indenture Trustee to withdraw from the Reserve Account on such Distribution Date an
amount equal to such excess, to the extent of funds available therein, after giving effect to
paragraphs (d)(i) and (e)(i) above, up to the Certificate Interest Reserve Amount with respect to
such Distribution Date, and deposit such amount into the Certificate Distribution Account.

     (iii) In the event that the Certificateholders’ Principal Distributable Amount on the Final
Scheduled Distribution Date exceeds the amount deposited in the Certificate Distribution Account
pursuant to Section 5.06(b)(ii)(E), the Servicer shall instruct the Indenture Trustee to withdraw
from the Reserve Account on such Distribution Date an amount equal to such excess, to the extent of
funds available therein after giving effect to paragraphs (d) and (e)(i) above, and deposit such
amount into the Certificate Distribution Account.

          (f) Subject to Section 9.01, amounts will continue to be applied pursuant to Section 5.06(b)
following payment in full of the Outstanding Amount of the Notes and the Certificate Balance until
the Pool Balance is reduced to zero. Following the payment in full of the aggregate Outstanding
Amount of the Notes and the Certificate Balance and of all other amounts owing or to be distributed
hereunder or under the Indenture or the Trust Agreement to Noteholders and Certificateholders and
the termination of the Trust, any amount remaining on deposit in the Reserve Account shall be
distributed to the Company.

          (g) On the Final Scheduled Distribution Date, if the amount of funds remaining in the Reserve
Account (after all other distributions to be made from the Reserve Account pursuant to this Section
have been made, other than paragraphs (b)(i) and (f)) is in excess of the amounts described below,
a portion of such excess according to the following schedule shall be deposited in the Certificate
Distribution Account for distribution to Certificateholders:

     (i) with respect to all such funds in the Reserve Account in excess of $___but which do not
exceed $ , 20% of such amount;

     (ii) with respect to all such funds in the Reserve Account in excess of $___but which do not
exceed $ , 40% of such amount;

     (iii) with respect to all such funds in the Reserve Account in excess of $___but which do not
exceed $ , 60% of such amount;

     (iv) with respect to all such funds in the Reserve Account in excess of $___but which do not
exceed $ , 80% of such amount; and

     (v) with respect to all such funds in the Reserve Account in excess of $___, 100% of such
amount.

     The amounts to be deposited in the Certificate Distribution Account pursuant to the preceding
sentence are in excess of all amounts otherwise required to be deposited in the Certificate
Distribution Account pursuant to this Agreement, notwithstanding anything to the contrary contained
herein.

     Section 5.08 Statements to Certificateholders and Noteholders. (a) On each Distribution Date,
the Servicer shall provide to the Indenture Trustee (with a copy to the Rating Agencies and each
Paying Agent) for the Indenture Trustee to forward to each Noteholder of record as of the most
recent Record Date and to the Owner Trustee (with a copy to each Paying Agent) for the Owner
Trustee to forward to each Certificateholder of record as of the most recent Record Date a
statement substantially in the form of Exhibit B setting forth at least the following information
as to the Notes and the Certificates to the extent applicable:

     (i) the amount of such distribution allocable to principal allocable to each Class of Notes
and to the Certificates;

     (ii) the amount of such distribution allocable
to interest allocable to each Class of Notes and to the Certificates;

 

 

          (iii) the outstanding principal balance of each Class of Notes, the Note Pool Factor for each
such Class, the Certificate Balance and the Certificate Pool Factor as of the close of business on
the last day of the preceding Collection Period, after giving effect to payments allocated to
principal reported under clause (i) above;

          (iv) the amount of the Servicing Fee paid to the Servicer with respect to the related
Collection Period;

          (v) the amount of Realized Losses, if any, with respect to the related Collection Period;

          (vi) the balance of the Reserve Account on such Payment Determination Date after giving effect
to deposits and withdrawals to be made on the next following Distribution Date, if any;

          (vii) the aggregate Payahead Balance; and

          (viii) the Pool Balance as of the close of business on the last day of the related Collection
Period, after giving effect to payments allocated to principal reported under subsection (a)(i)
above, as reconciled.

     Each amount set forth reconciling amounts on the Distribution Date statement under clauses
(i), (ii) or (iv) above shall be expressed as a dollar amount per $1,000 of original principal
balance of a Certificate or Note, as applicable.

     Section 5.09 Net Deposits. As an administrative convenience, unless the Servicer is required
to remit collections daily, the Servicer will be permitted to make the deposit of collections on
the Receivables, aggregate Advances and Purchase Amounts for or with respect to the Collection
Period net of distributions to be made to the Servicer with respect to the Collection Period. The
Servicer, however, will account to the Owner Trustee, the Indenture Trustee, the Noteholders and
the Certificateholders as if all deposits, distributions and transfers were made individually.

ARTICLE VI

The Company

     Section 6.01 Representations of the Company. The Company makes the following representations
on which the Issuer is deemed to have relied in acquiring the Receivables. The representations
speak as of the execution and delivery of this Agreement and as of the Closing Date and shall
survive the sale of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee
pursuant to the Indenture.

          (a) Organization and Good Standing. The Company is duly organized and validly existing as a
corporation in good standing under the laws of the State of Delaware, with the 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, the corporate
power, authority and legal right to acquire and own the Receivables.

          (b) Due Qualification. The Company 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.

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

          (d) Binding Obligation. This Agreement

 

 

constitutes a legal, valid and binding obligation of the Company enforceable in accordance with its
terms, subject to applicable bankruptcy, insolvency, reorganization and similar laws now or
hereafter in effect relating to or affecting creditors’ rights generally and to general principles
of equity (whether applied in a proceeding at law or in equity).

          (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, or constitute (with or without notice or lapse of time) a default under, the
articles of incorporation or bylaws of the Company, or any material term of any indenture,
agreement or other instrument to which the Company is a party or by which it is bound; or 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 pursuant to the Basic Documents); or violate
any law or, to the best of the Company’s knowledge, any order, rule or regulation applicable to the
Company of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Company or its properties.

          (f) No Proceedings. There are no proceedings or investigations pending or, to the Company’s
knowledge, threatened, before any court, regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Company or its properties: (i) asserting
the invalidity of this Agreement, the Indenture or any of the other Basic Documents, the Notes or
the Certificates, (ii) seeking to prevent the issuance of the Notes or the Certificates or the
consummation of any of the transactions contemplated by this Agreement, the Indenture or any of the
other Basic Documents, (iii) seeking any determination or ruling that might materially and
adversely affect the performance by the Company of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or
the Certificates or (iv) relating to the Company and which might materially and adversely affect
the federal or state income tax attributes of the Notes or the Certificates.

     Section 6.02 Corporate Existence. During the term of this Agreement, the Company will keep in
full force and effect its existence, rights and franchises as a corporation under the laws of the
jurisdiction of its incorporation and will obtain and preserve its qualification to do business in
each jurisdiction in which such qualification is or shall be necessary to protect the validity and
enforceability of this Agreement, the Basic Documents and each other instrument or agreement
necessary or appropriate to the proper administration of this Agreement and the transactions
contemplated hereby. In addition, all transactions and dealings between the Company and its
Affiliates will be conducted on an arm’s-length basis.

     Section 6.03 Liability of the Company. The Company shall be liable in accordance herewith only
to the extent of the obligations specifically undertaken and the representations and warranties
made by the Company under this Agreement.

     Section 6.04 Merger or Consolidation of, or Assumption of the Obligations of the Company. Any
Person (a) into which the Company may be merged or consolidated, (b) which may result from any
merger or consolidation to which the Company shall be a party or (c) which may succeed to
substantially all of the properties and assets of the Company, which person in any of the foregoing
cases executes an agreement of assumption to perform every obligation of the Company under this
Agreement, shall be the successor to the Company hereunder without the execution or filing of any
document or any further act by any of the parties to this Agreement; provided, however, that (i)
immediately after giving effect to such transaction, no representation or warranty made pursuant to
Section 3.01 shall have been breached and no Servicer Default, and no event that, after notice or
lapse of time, or both, would become a Servicer Default shall have occurred and be continuing, (ii)
the Company shall have

 

 

delivered to the Owner Trustee and the Indenture Trustee an Officers’ Certificate and an Opinion of
Counsel each stating that such consolidation, merger or succession and such agreement of assumption
comply with this Section and that all conditions precedent, if any, provided for in this Agreement
relating to such transaction have been complied with, (iii) the Rating Agency Condition shall have
been satisfied with respect to such transaction and (iv) the Company shall have delivered to the
Owner Trustee and the Indenture Trustee an Opinion of Counsel either (A) stating that, in the
opinion of such counsel, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and protect the interest
of the Owner Trustee and Indenture Trustee, respectively, in the Receivables and reciting the
details of such filings, or (B) stating that, in the opinion of such counsel, no such action shall
be necessary to preserve and protect such interests. Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance with clauses (i),
(ii), (iii) and (iv) above shall be conditions to the consummation of the transactions referred to
in clauses (a), (b) or (c) above.

     Section 6.05 Limitation on Liability of the Company and Others. The Company and any director,
officer, employee or agent of the Company may rely in good faith on the advice of counsel or on any
document of any kind, prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Company shall not be under any obligation to appear in, prosecute or
defend any legal action that shall not be related to its respective obligations under this
Agreement, and that in the Company’s opinion may involve it in any expense or liability.

     Section 6.06 The Company May Own Certificates or Notes. The Company and any Affiliate thereof
may in their individual or any other capacity become the owner or pledgee of Certificates or Notes
with the same rights as they would have if it were not the Company or an Affiliate thereof, except
as expressly provided herein or in any Basic Document.

ARTICLE VII

The Servicer

     Section 7.01 Representations of Servicer. The Servicer makes the following representations on
which the Issuer is deemed to have relied in acquiring the Receivables. The representations speak
as of the execution and delivery of this Agreement and as of the Closing Date, and shall survive
the sale of the Receivables to the Issuer and the pledge thereof to the Indenture Trustee pursuant
to the Indenture.

          (a) Organization and Good Standing. The Servicer is duly organized and validly existing as a
corporation in good standing under the laws of the state of its incorporation with the 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,
the corporate power, authority and legal right to acquire, own, sell and service the Receivables
and to hold the Receivable Files as custodian on behalf of the Trust and the Indenture Trustee.

          (b) Due Qualification. The Servicer 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 (including the servicing of
the Receivables as required by this Agreement) shall require such qualifications.

          (c) Power and Authority. The Servicer has the corporate power and authority to execute and
deliver this Agreement and to carry out its terms; and the execution, delivery and performance of
this Agreement have been duly authorized by the Servicer by all necessary corporate action.

          (d) Binding Obligation. This Agreement constitutes a legal, valid and binding obligation of
the Servicer enforceable in accordance with its terms, subject to applicable bankruptcy,

 

 

insolvency, reorganization and similar laws now or hereafter in effect relating to or affecting
creditor’s rights generally and to general principles of equity (whether applied in a proceeding at
law or in equity).

          (e) No Violation. The consummation of the transactions contemplated by this Agreement and the
fulfillment of the terms hereof shall not conflict with, result in any breach of any of the terms
and provisions of, or constitute (with or without notice or lapse of time) a default under, the
articles of incorporation or bylaws of the Servicer, or any material term of any indenture,
agreement or other instrument to which the Servicer is a party or by which it is bound; or 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 this Agreement); or violate any law or,
to the best of the Servicer’s knowledge, any order, rule or regulation applicable to the Servicer
of any court or of any federal or state regulatory body, administrative agency or other
governmental instrumentality having jurisdiction over the Servicer or its properties.

          (f) No Proceedings. To the Servicer’s best knowledge, there are no proceedings or
investigations pending, or threatened, before any court, regulatory body, administrative agency or
other governmental instrumentality having jurisdiction over the Servicer or its properties: (i)
asserting the invalidity of this Agreement, the Indenture, any of the other Basic Documents, the
Notes or the Certificates, (ii) seeking to prevent the issuance of the Notes or the Certificates or
the consummation of any of the transactions contemplated by this Agreement, the Indenture or any of
the other Basic Documents, (iii) seeking any determination or ruling that might materially and
adversely affect the performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic Documents, the Notes or
the Certificates or (iv) relating to the Servicer and which might materially and adversely affect
the federal or state income tax attributes of the Notes or the Certificates.

          (g) No Insolvent Obligors. As of the related Cutoff Date, no Obligor on a Receivable is shown
on the Receivable Files as the subject of a bankruptcy proceeding.

     Section 7.02 Indemnities of Servicer. The Servicer shall be liable in accordance herewith only
to the extent of the obligations specifically undertaken by the Servicer under this Agreement:

          (a) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders, the Certificateholders and the Company and any of the officers,
directors, employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee from and
against any and all costs, expenses, losses, damages, claims and liabilities, arising out of or
resulting from the use, ownership or operation by the Servicer or any Affiliate thereof of a
Financed Vehicle.

          (b) The Servicer shall indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Company, the Certificateholders and the Noteholders and any of the officers,
directors, employees and agents of the Issuer, the Owner Trustee and the Indenture Trustee from and
against any and all costs, expenses, losses, claims, damages and liabilities to the extent that
such cost, expense, loss, claim, damage or liability arose out of, or was imposed upon any such
Person through, the negligence, willful misfeasance or bad faith of the Servicer in the performance
of its duties under this Agreement or by reason of reckless disregard of its obligations and duties
under this Agreement.

     For purposes of this Section, in the event of the termination of the rights and obligations of
the Servicer (or any successor thereto pursuant to Section 7.03) as Servicer pursuant to Section
8.01, or a resignation by such Servicer pursuant to this Agreement, such Servicer shall be deemed
to be the Servicer pending appointment of a successor Servicer (other than the Indenture Trustee)
pursuant to Section 8.02.

 

 

     Indemnification under this Section shall survive the resignation or removal of the Owner
Trustee or the Indenture Trustee or the termination of this Agreement and shall include reasonable
fees and expenses of counsel and expenses of litigation. If the Servicer shall have made any
indemnity payments pursuant to this Section and the Person to or on behalf of whom such payments
are made thereafter collects any of such amounts from others, such Person shall promptly repay such
amounts to the Servicer, without interest.

     Section 7.03 Merger or Consolidation of, or Assumption of the Obligations of, Servicer. Any
Person (a) into which the Servicer may be merged or consolidated, (b) which may result from any
merger or consolidation to which the Servicer shall be a party or (c) which may succeed to
substantially all of the properties and assets of the Servicer, which Person executed an agreement
of assumption to perform every obligation of the Servicer hereunder, shall be the successor to the
Servicer under this Agreement without further act on the part of any of the parties to this
Agreement; provided, however, that (i) immediately after giving effect to such transaction, no
Servicer Default and no event which, after notice or lapse of time, or both, would become a
Servicer Default shall have occurred and be continuing, (ii) the Servicer shall have delivered to
the Owner Trustee and the Indenture Trustee an Officers’ Certificate and an Opinion of Counsel each
stating that such consolidation, merger or succession and such agreement of assumption comply with
this Section and that all conditions precedent provided for in this Agreement to such transaction
have been complied with, (iii) the Rating Agency Condition shall have been satisfied with respect
to such transaction and (iv) the Servicer shall have delivered to the Owner Trustee and the
Indenture Trustee an Opinion of Counsel stating that, in the opinion of such counsel, either (A)
all financing statements and continuation statements and amendments thereto have been executed and
filed that are necessary fully to preserve and protect the interest of the Owner Trustee and the
Indenture Trustee, respectively, in the Receivables and reciting the details of such filings or (B)
no such action shall be necessary to preserve and protect such interests. Notwithstanding anything
herein to the contrary, the execution of the foregoing agreement of assumption and compliance with
clauses (i), (ii), (iii) and (iv) above shall be conditions to the consummation of the transactions
referred to in clause (a), (b) or (c) above.

     Section 7.04 Limitation on Liability of Servicer and Others. Neither the Servicer nor any of
the directors, officers, employees or agents of the Servicer shall be under any liability to the
Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders or the Certificateholders, except
as provided under this Agreement, for any action taken or for refraining from the taking of any
action pursuant to this Agreement or for errors in judgment; provided, however, that this provision
shall not protect the Servicer or any such person against any liability that would otherwise be
imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties or
by reason of reckless disregard of obligations and duties under this Agreement. The Servicer and
any director, officer, employee or agent of the Servicer may rely in good faith on any document of
any kind prima facie properly executed and submitted by any person respecting any matters arising
under this Agreement.

     Except as provided in this Agreement, the Servicer shall not be under any obligation to appear
in, prosecute or defend any legal action that shall not be related to its duties to service the
Receivables in accordance with this Agreement and that in its opinion may involve it in any expense
or liability; provided, however, that the Servicer may undertake any reasonable action that it may
deem necessary or desirable in respect of this Agreement and the Basic Documents and the rights and
duties of the parties to this Agreement and the Basic Documents and the interests of the
Certificateholders under this Agreement and the Noteholders under the Indenture.

 

 

     Section 7.05 Servicer Not To Resign. Subject to the provisions of Section 7.03, the Servicer
shall not resign from the obligations and duties hereby imposed on it as Servicer under this
Agreement except upon a determination that the performance of its duties under this Agreement shall
no longer be permissible under applicable law. Notice of any such determination permitting the
resignation of the Servicer shall be communicated to the Owner Trustee and the Indenture Trustee at
the earliest practicable time (and, if such communication is not in writing, shall be confirmed in
writing at the earliest practicable time) and any such determination shall be evidenced by an
Opinion of Counsel to such effect delivered to the Owner Trustee and the Indenture Trustee
concurrently with or promptly after such notice. No such resignation shall become effective until
the Indenture Trustee or a successor Servicer shall have assumed the responsibilities and
obligations of the Servicer in accordance with Section 8.02.

ARTICLE VIII

Default

     Section 8.01 Servicer Default. If any one of the following events (a “Servicer Default”) shall
occur and be continuing:

          (a) any failure by the Servicer to deliver to the Indenture Trustee for deposit in any of the
Trust Accounts or the Certificate Distribution Account any required payment or to direct the
Indenture Trustee to make any required distributions therefrom, which failure continues unremedied
for a period of three Business Days after written notice of such failure is received by the
Servicer from the Owner Trustee or the Indenture Trustee or after discovery of such failure by an
officer of the Servicer; or

          (b) failure by the Servicer or the Company, as the case may be, duly to observe or to perform
in any material respect any other covenants or agreements of the Servicer or the Company (as the
case may be) set forth in this Agreement or any other Basic Document, which failure shall (i)
materially and adversely affect the rights of Certificateholders or Noteholders and (ii) continue
unremedied for a period of 60 days after the date on which written notice of such failure,
requiring the same to be remedied, shall have been given (A) to the Servicer or the Company (as the
case may be) by the Owner Trustee or the Indenture Trustee or (B) to the Servicer or the Company
(as the case may be), and to the Owner Trustee and the Indenture Trustee by the Holders of Notes or
Certificates, as applicable, evidencing not less than 25% of the Outstanding Amount of the Notes or
25% of the outstanding Certificate Balance; or

          (c) the occurrence of an Insolvency Event with respect to the Company, the Servicer or the
Company; then, and in each and every case, so long as the Servicer Default shall not have been
remedied, either the Indenture Trustee or the Holders of Notes evidencing not less than a majority
of the Outstanding Amount of the Notes, by notice then given in writing to the Servicer (and to the
Indenture Trustee and the Owner Trustee if given by the Noteholders) may terminate all the rights
and obligations (other than the obligations set forth in Section 7.02 hereof) of the Servicer under
this Agreement. On or after the receipt by the Servicer of such written notice, all authority and
power of the Servicer under this Agreement, whether with respect to the Notes, the Certificates or
the Receivables or otherwise, shall, without further action, pass to and be vested in the Indenture
Trustee or such successor Servicer as may be appointed under Section 8.02; and, without limitation,
the Indenture Trustee and the Owner Trustee are hereby authorized and empowered to execute and
deliver, for the benefit of the predecessor Servicer, as attorney-in-fact, or otherwise, any and
all documents and other instruments, and to do or accomplish all other acts or things necessary or
appropriate to effect the purposes of such notice of termination, whether to complete the transfer
and endorsement of the Receivables and related documents, or otherwise. The predecessor Servicer
shall cooperate with the successor Servicer, the Indenture Trustee and the

 

 

Owner Trustee in effecting the termination of the responsibilities and rights of the predecessor
Servicer under this Agreement, including the transfer to the successor Servicer for administration
by it of all cash amounts that shall at the time be held by the predecessor Servicer for deposit,
or shall thereafter be received by it with respect to any Receivable. All reasonable costs and
expenses (including attorneys’ fees) incurred in connection with transferring the Receivable Files
to the successor Servicer and amending this Agreement to reflect such succession as Servicer
pursuant to this Section shall be paid by the predecessor Servicer upon presentation of reasonable
documentation of such costs and expenses. Upon receipt of notice of the occurrence of a Servicer
Default, the Owner Trustee shall give notice thereof to the Rating Agencies.

     Section 8.02 Appointment of Successor. (a) Upon the Servicer’s receipt of notice of
termination pursuant to Section 8.01 or the Servicer’s resignation in accordance with the terms of
this Agreement, the predecessor Servicer shall continue to perform its functions as Servicer under
this Agreement, in the case of termination, only until the date specified in such termination
notice or, if no such date is specified in a notice of termination, until receipt of such notice
and, in the case of resignation, until the earlier of (i) the date 45 days from the delivery to the
Owner Trustee and the Indenture Trustee of written notice of such resignation (or written
confirmation of such notice) in accordance with the terms of this Agreement and (ii) the date upon
which the predecessor Servicer shall become unable to act as Servicer, as specified in the notice
of resignation and accompanying Opinion of Counsel. In the event of the Servicer’s termination
hereunder, the Indenture Trustee shall appoint a successor Servicer, and the successor Servicer
shall accept its appointment by a written assumption in form acceptable to the Owner Trustee and
the Indenture Trustee. In the event that a successor Servicer has not been appointed at the time
when the predecessor Servicer has ceased to act as Servicer in accordance with this Section, the
Indenture Trustee without further action shall automatically be appointed the successor Servicer
and shall be entitled to the Servicing Fee. Notwithstanding the above, the Indenture Trustee shall,
if it shall be legally unable so to act, appoint or petition a court of competent jurisdiction to
appoint any established institution, having a net worth of not less than $100,000,000 and whose
regular business shall include the servicing of automotive receivables, as the successor to the
Servicer under this Agreement.

          (b) Upon appointment, the successor Servicer (including the Indenture Trustee acting as
successor Servicer) shall be the successor in all respects to the predecessor Servicer and shall be
subject to all the responsibilities, duties and liabilities arising thereafter relating thereto
placed on the predecessor Servicer and shall be entitled to the Servicing Fee and all the rights
granted to the predecessor Servicer by the terms and provisions of this Agreement.

          (c) The Servicer may not resign unless it is prohibited from serving as such by law.

     Section 8.03 Repayment of Advances. If the Servicer shall change, the predecessor Servicer
shall be entitled to receive reimbursement for Outstanding Advances pursuant to Sections 5.03 and
5.04 with respect to all Advances made by the predecessor Servicer.

     Section 8.04 Notification to Noteholders and Certificateholders. Upon any termination of, or
appointment of a successor to, the Servicer pursuant to this Article VIII, the Owner Trustee shall
give prompt written notice thereof to Certificateholders, and the Indenture Trustee shall give
prompt written notice thereof to Noteholders and the Rating Agencies.

     Section 8.05 Waiver of Past Defaults. The Holders of Notes evidencing not less than a majority
of the Outstanding Amount of the Notes or the Holders (as defined in the Trust Agreement) of
Certificates evidencing not less than a majority of the outstanding Certificate Balance (in the
case of any default which does not adversely affect the Indenture Trustee or the Noteholders) may,
on behalf of all Noteholders and

 

 

Certificateholders, waive in writing any default by the Servicer in the performance of its
obligations hereunder and its consequences, except a default in making any required deposits to or
payments from any of the Trust Accounts in accordance with this Agreement. Upon any such waiver of
a past default, such default shall cease to exist, and any Servicer Default arising therefrom shall
be deemed to have been remedied for every purpose of this Agreement. No such waiver shall extend to
any subsequent or other default or impair any right consequent thereto.

ARTICLE IX

Termination

     Section 9.01 Optional Purchase of All Receivables. (a) As of the last day of any Collection
Period immediately preceding a Distribution Date as of which the then outstanding Pool Balance is
10% or less of the Original Pool Balance and the Class A-1 Notes have been paid in full, the
Servicer shall have the option to purchase the Owner Trust Estate, other than the Trust Accounts
and the Certificate Distribution Account; provided, however, that, unless Moody’s agrees otherwise,
the Servicer may not effect any such purchase if the rating of the Servicer’s long-term debt
obligations is less than Baa3 by Moody’s, unless the Owner Trustee and the Indenture Trustee shall
have received an Opinion of Counsel to the effect that such purchase would not constitute a
fraudulent conveyance. To exercise such option, the Servicer shall deposit pursuant to Section 5.05
in the Collection Account an amount equal to the aggregate Purchase Amount for the Receivables
(including defaulted Receivables), plus the appraised value of any such other property held by the
Trust other than the Trust Accounts and the Certificate Distribution Account, such value to be
determined by an appraiser mutually agreed upon by the Servicer, the Owner Trustee and the
Indenture Trustee, and shall succeed to all interests in and to the Trust. Notwithstanding the
foregoing, the Servicer shall not be permitted to exercise such option unless the amount to be
deposited in the Collection Account pursuant to the preceding sentence is greater than or equal to
the sum of the outstanding principal balance of the Notes and the Certificate Balance and all
accrued but unpaid interest (including any overdue interest and premium) thereon.

          (b) Upon any sale of the assets of the Trust pursuant to Section 9.02 of the Trust Agreement,
the Servicer shall instruct the Indenture Trustee to deposit the proceeds from such sale after all
payments and reserves therefrom have been made (the “Insolvency Proceeds”) in the Collection
Account. On the Distribution Date on which the Insolvency Proceeds are deposited in the Collection
Account (or, if such proceeds are not so deposited on a Distribution Date, on the Distribution Date
immediately following such deposit), the Servicer shall instruct the Indenture Trustee to make the
following deposits (after the application on such Distribution Date of the Total Distribution
Amount and funds on deposit in the Reserve Account pursuant to Sections 5.06 and 5.07) from the
Insolvency Proceeds and any funds remaining on deposit in the Reserve Account (including the
proceeds of any sale of investments therein as described in the following sentence):

     (i) to the Note Distribution Account, any portion of the Noteholders’ Interest Distributable
Amount not otherwise deposited into the Note Distribution Account on such Distribution Date;

     (ii) to the Note Distribution Account, the outstanding principal balance of the Notes (after
giving effect to the reduction in the outstanding principal balance of the Notes to result from the
deposits made in the Note Distribution Account on such Distribution Date and on prior Distribution
Dates);

     (iii) to the Certificate Distribution Account, any portion of the Certificateholders’ Interest
Distributable Amount not otherwise deposited into the Certificate Distribution Account on such
Distribution Date; and

     (iv) to the Certificate Distribution Account, the Certificate Balance after giving effect to
the reduction in

 

 

the Certificate Balance to result from the deposits made in the Certificate Distribution Account on
such Distribution Date).

     Any investments on deposit in the Reserve Account or Note Distribution Account which will not
mature on or before such Distribution Date shall be sold by the Indenture Trustee at such time as
will result in the Indenture Trustee receiving the proceeds from such sale not later than the
Payment Determination Date preceding such Distribution Date. Any Insolvency Proceeds remaining
after the deposits described above shall be paid to the Company.

          (c) As described in Article IX of the Trust Agreement, notice of any termination of the Trust
shall be given by the Servicer to the Owner Trustee and the Indenture Trustee as soon as
practicable after the Servicer has received notice thereof.

          (d) Following the satisfaction and discharge of the Indenture and the payment in full of the
principal of and interest on the Notes, the Certificateholders will succeed to the rights of the
Noteholders hereunder other than Section 5.07(b) and the Owner Trustee will succeed to the rights
of, and assume the obligations of, the Indenture Trustee pursuant to this Agreement.

ARTICLE X

Miscellaneous

     Section 10.01 Amendment. This Agreement may be amended by the Company, the Servicer and the
Issuer, with the consent of the Indenture Trustee, but without the consent of any of the
Noteholders 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 or the Certificateholders; provided, however, that such action shall not,
as evidenced by an Opinion of Counsel delivered to the Owner Trustee and the Indenture Trustee,
adversely affect in any material respect the interests of any Noteholder or Certificateholder. This
Agreement may also be amended from time to time by the Company, the Servicer and the Issuer, with
the consent of the Holders of Notes evidencing not less than a majority of the Outstanding Amount
of the Notes and the consent of the Holders (as defined in the Trust Agreement) of outstanding
Certificates evidencing not less than a majority of the outstanding Certificate Balance, 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 or the
Certificateholders; provided, however, that no such amendment shall (a) except as otherwise
provided in the first paragraph of this Section, 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 or the Certificateholders or (b)
reduce the aforesaid percentage of the Outstanding Amount of the Note and the Certificate Balance,
the Holders of which are required to consent to any such amendment, without the consent of the
Holders of all the outstanding Notes and the Holders (as defined in the Trust Agreement) of all the
outstanding 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 or Noteholders 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.

     Prior to the execution of any amendment to this Agreement, the Owner Trustee and the Indenture
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 and the Opinion of Counsel referred
to in Section 10.02(i)(1). The Owner Trustee and the

 

 

Indenture Trustee may, but shall not be obligated to, enter into any such amendment which affects
the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or immunities
under this Agreement or otherwise.

     Section 10.02 Protection of Title to Trust. (a) The Company and the Servicer shall execute and
file such financing statements and cause to be executed and filed such continuation statements, all
in such manner and in such places as may be required by law fully to preserve, maintain and protect
the interest of the Issuer and of the Indenture Trustee in the Receivables and in the proceeds
thereof. The Company and the Servicer shall deliver (or cause to be delivered) to the Owner Trustee
and the Indenture Trustee file-stamped copies of, or filing receipts for, any document filed as
provided above, as soon as available following such filing.

          (b) Neither the Company nor the Servicer shall change their respective name, identity or
corporate structure in any manner that would, could or might make any financing statement or
continuation statement or continuation statement filed in accordance with paragraph (a) above
seriously misleading within the meaning of (S) 9-4.02(7) of the UCC, unless the Company or the
Servicer, as the case may be, shall have given the Owner Trustee and the Indenture Trustee at least
five days’ prior written notice thereof and shall have promptly filed appropriate amendments to all
previously filed financing statements or continuation statements.

          (c) The Company and the Servicer shall have an obligation to give the Owner Trustee and the
Indenture Trustee at least 60 days’ prior written notice of any relocation of its principal
executive office if, as a result of such relocation, the applicable provisions of the UCC would
require the filing of any amendment of any previously filed financing or continuation statement or
of any new financing statement and shall promptly file any such amendment or new financing
statement. The Servicer shall at all times maintain each office from which it shall service
Receivables, and its principal executive office, within the United States of America.

          (d) The Servicer shall maintain accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of such
Receivable, including payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the
amounts from time to time deposited in the Collection Account and the Payahead Account in respect
of such Receivable.

          (e) The Servicer shall maintain its computer systems so that, from and after the time of sale
under this Agreement of the Receivables, the Servicer’s master computer records (including any
backup archives) that refer to a Receivable shall indicate clearly the interest of the Issuer and
the Indenture Trustee in such Receivable and that such Receivable is owned by the Issuer and has
been pledged to the Indenture Trustee. Indication of the Issuer’s and the Indenture Trustee’s
interest in a Receivable shall be deleted from or modified on the Servicer’s computer systems when,
and only when, the related Receivable shall have been paid in full or repurchased.

          (f) If at any time the Company or the Servicer shall propose to sell, grant a security
interest in or otherwise transfer any interest in automotive receivables to any prospective
purchaser, lender or other transferee, the Servicer shall give to such prospective purchaser,
lender or other transferee computer tapes, records or printouts (including any restored from backup
archives) that, if they shall refer in any manner whatsoever to any Receivable, shall indicate
clearly that such Receivable has been sold and is owned by the Issuer and has been pledged to the
Indenture Trustee.

          (g) The Servicer shall permit the Indenture Trustee and its agents to inspect, audit and make
copies of and abstracts from the Servicer’s records regarding any Receivable at any time during
normal business hours upon reasonable notice.

 

 

          (h) Upon request, the Servicer shall furnish to the Owner Trustee or to the Indenture Trustee,
within five Business Days, a list of all Receivables (by contract number and name of Obligor) then
held as part of the Trust, together with a reconciliation of such list to the Schedule of
Receivables and to each of the Servicer’s Certificates furnished before such request indicating
removal of Receivables from the Trust.

          (i) The Servicer shall deliver to the Owner Trustee and the Indenture Trustee:

          (1) promptly after the execution and delivery of this Agreement and of each amendment hereto,
an Opinion of Counsel stating that, in the opinion of such counsel, either (A) all financing
statements and continuation statements have been executed and filed that are necessary fully to
preserve and protect the interest of the Owner Trustee and the Indenture Trustee in the
Receivables, and reciting the details of such filings or referring to prior Opinions of Counsel in
which such details are given, or (B) no such action shall be necessary to preserve and protect such
interest; and

          (2) within 90 days after the beginning of each calendar year beginning with the first calendar
year beginning more than three months after the Cutoff Date to occur, an Opinion of Counsel, dated
as of a date during such 90-day period, stating that, in the opinion of such counsel, either (A)
all financing statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and the Indenture Trustee
in the Receivables, and reciting the details of such filings or referring to prior Opinions of
Counsel in which such details are given, or (B) no such action shall be necessary to preserve and
protect such interest.

Each Opinion of Counsel referred to in clause (1) or (2) above shall specify any action necessary
(as o the date of such opinion) to be taken in the following year to preserve and protect such
interest.

          (j) The Company shall, to the extent required by applicable law, cause the Certificates and
the Notes to be registered with the Commission pursuant to Section 12(b) or Section 12(g) of the
Exchange Act within the time periods specified in such sections.

     Section 10.03 Notices. All demands, notices, communications and instructions upon or to the
Company, the Servicer, the Owner Trustee, the Indenture Trustee or the Rating Agencies under this
Agreement shall be in writing, personally delivered or mailed by certified mail, return receipt
requested, and shall be deemed to have been duly given upon receipt (a) in the case of the Company,
                    , Attention                     ; (b) in the case of the
Servicer, to                     , Attention                     ; (c) in the case of the Indenture Trustee, at the Corporate Trust Office; (d) in the case of
the Owner Trustee, at the Corporate Trust Office; (e) in the case of the Rating Agencies,                      ; or,
as to each of the foregoing, at such other address as
shall be designated -by written notice to the other parties.

     Section 10.04 Assignment by the Company or the Servicer. Notwithstanding anything to the
contrary contained herein, except as provided in the remainder of this Section, as provided in
Sections 6.04 and 7.03 herein and as provided in the provisions of this Agreement concerning the
resignation of the Servicer, this Agreement may not be assigned by the Company or the Servicer. The
Issuer and the Servicer hereby acknowledge and consent to the conveyance and assignment by the
Company to                    , of any and all of the Company rights and interests (and
corresponding obligations, if any) hereunder with respect to receiving amounts from the Reserve
Account, and the Issuer and the Servicer hereby agree that any such assignee of the Company, shall
be entitled to

 

 

enforce such rights and interests directly against the Issuer as if such assignee of the Company,
were itself a party to this Agreement.

     Section 10.05 Limitations on Rights of Others. The provisions of this Agreement are solely for
the benefit of the Company (and any assignee of the Company pursuant to Section 10.04), the
Servicer, the Issuer, the Owner Trustee, the Certificateholders, the Indenture Trustee and the
Noteholders, and nothing in this Agreement, 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 10.06 Severability. Any provision of this Agreement that is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of
such prohibition or unenforceability without invalidating the remaining provisions hereof, and any
such prohibition or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

     Section 10.07 Separate Counterparts. This Agreement may be executed by the parties hereto in
separate counterparts, each of which when so executed and delivered shall be an original, but all
such counterparts shall together constitute but one and the same instrument.

     Section 10.08 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 10.09 Governing Law. This Agreement shall be construed in accordance with the laws of
the State of New York, 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 10.10 Assignment by Issuer. The Company hereby acknowledges and consents to any
mortgage, pledge, assignment and grant of a security interest by the Issuer to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders of all right, title and
interest of the Issuer in, to and under the Receivables and/or the assignment of any or all of the
Issuer’s rights and obligations hereunder to the Indenture Trustee.

     Section 10.11 Nonpetition Covenant. Notwithstanding any prior termination of this Agreement,
the Servicer shall not, prior to the date which is one year and one day after the termination of
this Agreement with respect to the Issuer or the Company, acquiesce, petition or otherwise invoke
or cause the Issuer or the Company (or any assignee of the Company pursuant to Section 10.04) to
invoke the process of any court or government authority for the purpose of commencing or sustaining
a case against the Issuer or the Company (or any assignee of the Company pursuant to Section 10.04)
under any federal or state bankruptcy, insolvency or similar law, or appointing a receiver,
liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Issuer or
the Company (or any assignee of the Company pursuant to Section 10.04) or any substantial part of
its property, or ordering the winding up or liquidation of the affairs of the Issuer or the Company
(or any assignee of the Company pursuant to Section 10.04).

     Section 10.12 Limitation of Liability of Owner Trustee and Indenture Trustee. (a)
Notwithstanding anything contained herein to the contrary, this Agreement has been countersigned by
                     not in its individual capacity but solely in its capacity as Owner
Trustee of the Issuer and in no event shall                      in its individual capacity
or, except as expressly provided in the Trust Agreement, as beneficial owner of the Issuer have any
liability for the representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as
to all of which recourse shall be had solely to the assets of the Issuer. For all purposes of this
Agreement, in the performance of its

 

 

duties or obligations hereunder or in the performance of any duties or obligations of the Issuer
hereunder, the Owner Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles VI, VII and VIII of the Trust Agreement.

     (b) Notwithstanding anything contained herein to the contrary, this Agreement has been
accepted by The Bank of New York, not in its individual capacity but solely as Indenture Trustee
and in no event shall The Bank of New York have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder or in any of the certificates,
notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to
the assets of the Issuer.

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

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	[ ] VEHICLE RECEIVABLES TRUST 200 [ ] — [ ]	 	 
	 	 	 	 	By:	 	                    , not in its individual
capacity but solely as Owner Trustee
on behalf of the Trust	 	 
	 

	 	 	 	 	 	By:	 	 	 	 
	 

	 	 	 	 	 	 	 	Name:	 	 
	 

	 	 	 	 	 	 	 	Title:	 	 
	 	 	 	 	[Goldman Sachs Asset Backed Securities Corp.],	 	 
	 	 	 	 	     as Company	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	, as Servicer
	 	 	 	 	 	 	 
	 

	 	 	 	By:	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	Title:	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Acknowledged and accepted as
of the day and year first above
written:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	not in its individual capacity

but solely as Indenture Trustee	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	as Seller	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	 	 	 	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 	 	 	 	 
	 

	 	Title:	 	 	 	 	 	 	 	 

 

 

	 	 	 
	 

	 	 
	 
	 	SCHEDULE I
	 	 	 
	Schedule of Receivables	 	 
	[To be Delivered to the Trust at Closing]	 	 
	 
	 	SCHEDULE II
	Location of Receivable Files	 	 
	[To be supplied]	 	 
	 
	 	EXHIBIT A
	[To be supplied]	 	 
	 
	 	EXHIBIT B
	[To be supplied]	 	 

 

 

APPENDIX A

REGULATION AB REPRESENTATIONS, WARRANTIES AND COVENANTS

PART I

DEFINED TERMS

     Section 1.01. As used in this Appendix A, the following terms shall have the following
meanings (such meanings to be equally applicable to both the singular and plural forms of the terms
defined); unless otherwise defined herein, terms used in this Appendix A that are defined in the
Agreement to which this Appendix A is attached shall have the same meanings herein as in the
Agreement:

     “Commission”: The United States Securities and Exchange Commission.

     “Regulation AB”: Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7,
2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time.

     “Securities Act”: The Securities Act of 1933, as amended.

PART II

COMPLIANCE WITH REGULATION AB

     Section 2.01. Intent of the Parties; Reasonableness. Each of the Issuer, the Company, the
Sellers, the Servicer and the Indenture Trustee acknowledges and agrees that the purpose of Part II
of this Appendix A is to facilitate compliance by the Issuer, the Company, the Sellers, the
Servicer and the Indenture Trustee with the provisions of Regulation AB and the related rules and
regulations of the Commission. Neither the Issuer nor the Sellers shall exercise its right to
request delivery of information, reports or other performance under these provisions for purposes
other than compliance with Regulation AB. Each of the Issuer, the Sellers and the Servicer
acknowledges that interpretations of the requirements of Regulation AB may change over time,
whether due to interpretive guidance provided by the Commission or its staff. Each of the Issuer,
the Company, the Sellers, the Servicer and the Indenture Trustee hereby agrees to reasonably comply
with all reasonable requests made by any of the other parties hereto (including any of its
assignees or designees), as the case may be, in good faith for delivery of such information or
reports, including, without limitation, any Servicer compliance statements and reports (solely with
respect to the Servicer), and assessments of compliance and attestation, as may be required under
the then-current interpretations of Regulation AB. The servicing criteria to be addressed in the
Indenture Trustee’s assessment of compliance and attestation shall be set forth on Schedule I
attached hereto and such assessments of compliance and attestations shall be provided by March
15th and shall only be required for years in which a 10-K is required to be filed.

					
	 	 	 	 	 
	 
	 	Appendix A-1
	 	(2006-Sale and Servicing
	 
	 	 	 	Agreement)

 

 

SCHEDULE I

Servicing Criteria To Be Addressed In Assessment Of Compliance

The assessment of compliance to be delivered by the Indenture Trustee, shall address, at a minimum,
the criteria identified as below as “Applicable Servicing Criteria”:

	 	 	 
	Reference

	 	Criteria
	 
	 	 
	 

	 	Cash Collection and Administration
	 
	 	 
	1122(d)(2)(ii)

	 	Disbursements made via wire transfer on behalf of an
obligor or to an investor are made only by authorized
personnel.
	 
	 	 
	 

	 	Investor Remittances and Reporting
	 
	 	 
	1122(d)(3)(ii)

	 	Amounts due to investors are allocated and remitted in
accordance with timeframes, distribution priority and
other terms set forth in the transaction agreements.
	 
	 	 
	1122(d)(3)(iii)

	 	Disbursements made to an investor are posted within two
business days to the Servicer’s investor records, or such
other number of days specified in the transaction
agreements.
	 
	 	 
	1122(d)(3)(iv)

	 	Amounts remitted to investors per the investor reports
agree with cancelled checks, or other form of payment, or
custodial bank statements.

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