Document:

exv10w45

 

Exhibit 10.45

Onyx Pharmaceuticals, Inc.

2005 Equity Incentive Plan

Adopted
by the Board of Directors: April 18, 2005

Approved by the
Stockholders: June 1, 2005

Termination Date: April 18, 2015

1. General.

     (a) Successor and Continuation of Prior Plans. The Plan is intended as the successor to and
continuation of the Onyx Pharmaceuticals, Inc. 1996 Equity Incentive Plan and the Onyx
Pharmaceuticals, Inc. 1996 Non-Employee Directors’ Stock Option Plan (collectively, the “Prior
Plans”). Following the effective date of this Plan, no additional stock awards shall be granted
under the Prior Plans. Any shares remaining available for issuance pursuant to the exercise of
options or settlement of stock awards under the Prior Plans shall be added to the share reserve of
this Plan and available for issuance pursuant to Stock Awards granted hereunder. All outstanding
stock awards granted under the Prior Plans shall remain subject to the terms of the Prior Plans.
Any shares subject to outstanding stock awards granted under the Prior Plans that expire or
terminate for any reason prior to exercise or settlement shall be added to the share reserve of
this Plan and become available for issuance pursuant to Stock Awards granted hereunder. All Stock
Awards granted subsequent to the effective date of this Plan shall be subject to the terms of this
Plan.

     (b) Eligible Stock Award Recipients. The persons eligible to receive discretionary Stock
Awards are Employees, Directors and Consultants. The persons eligible to receive non-discretionary
Stock Awards under the Non-Discretionary Grant Program are Eligible Directors.

     (c) Available Stock Awards. The Plan provides for the grant of the following Stock Awards:
(i) Incentive Stock Options, (ii) Nonstatutory Stock Options, (iii) Stock Purchase Awards, (iv)
Stock Bonus Awards, (v) Stock Appreciation Rights, (vi) Stock Unit Awards, and (vii) Other Stock
Awards.

     (d) General Purpose. The Company, by means of the Plan, seeks to secure and retain the
services of the group of persons eligible to receive Stock Awards as set forth in Section 1(b), to
provide incentives for such persons to exert maximum efforts for the success of the Company and any
Affiliate and to provide a means by which such eligible recipients may be given an opportunity to
benefit from increases in value of the Common Stock through the granting of Stock Awards.

2. Definitions.

     As used in the Plan, the following definitions shall apply to the capitalized terms indicated
below:

     (a) “Accountant” means the independent registered public accounting firm appointed by the
Company.

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     (b) “Affiliate” means (i) any corporation (other than the Company) in an unbroken chain of
corporations ending with the Company, provided each corporation in the unbroken chain (other than
the Company) owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such
chain, and (ii) any corporation (other than the Company) in an unbroken chain of corporations
beginning with the Company, provided each corporation (other than the last corporation) in the
unbroken chain owns, at the time of the determination, stock possessing fifty percent (50%) or more
of the total combined voting power of all classes of stock in one of the other corporations in such
chain. The Board shall have the authority to determine (i) the time or times at which the
ownership tests are applied, and (ii) whether “Affiliate” includes entities other than corporations
within the foregoing definition.

     (c) “Annual Award” means a Stock Award granted to each Eligible Director pursuant to Section
8(c)(ii).

     (d) “Annual Meeting” means the first meeting of the Company’s stockholders held each calendar
year at which Directors of the Company are selected.

     (e) “Award” means a Stock Award or a Performance Cash Award.

     (f) “Board” means the Board of Directors of the Company.

     (g) “Capitalization Adjustment” has the meaning ascribed to that term in Section 12(a).

     (h) “Change in Control” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:

          (i) any Exchange Act Person becomes the Owner, directly or indirectly, of securities of the
Company representing more than fifty percent (50%) of the combined voting power of the Company’s
then outstanding securities other than by virtue of a merger, consolidation or similar transaction.
Notwithstanding the foregoing, a Change in Control shall not be deemed to occur (A) on account of
the acquisition of securities of the Company by an investor, any affiliate thereof or any other
Exchange Act Person from the Company in a transaction or series of related transactions the primary
purpose of which is to obtain financing for the Company through the issuance of equity securities
or (B) solely because the level of Ownership held by any Exchange Act Person (the “Subject Person”)
exceeds the designated percentage threshold of the outstanding voting securities as a result of a
repurchase or other acquisition of voting securities by the Company reducing the number of shares
outstanding, provided that if a Change in Control would occur (but for the operation of this
sentence) as a
result of the acquisition of voting securities by the Company, and after such share
acquisition, the Subject Person becomes the Owner of any additional voting securities that,
assuming the repurchase or other acquisition had not occurred, increases the percentage of the then
outstanding voting securities Owned by the Subject Person over the designated percentage threshold,
then a Change in Control shall be deemed to occur;

          (ii) there is consummated a merger, consolidation or similar transaction involving (directly
or indirectly) the Company and, immediately after the consummation of such

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merger, consolidation or similar transaction, the stockholders of the Company immediately prior thereto do not Own, directly
or indirectly, either (A) outstanding voting securities representing more than fifty percent (50%)
of the combined outstanding voting power of the surviving Entity in such merger, consolidation or
similar transaction or (B) more than fifty percent (50%) of the combined outstanding voting power
of the parent of the surviving Entity in such merger, consolidation or similar transaction, in each
case in substantially the same proportions as their Ownership of the outstanding voting securities
of the Company immediately prior to such transaction;

          (iii) the stockholders of the Company approve or the Board approves a plan of complete
dissolution or liquidation of the Company, or a complete dissolution or liquidation of the Company
shall otherwise occur;

          (iv) there is consummated a sale, lease, exclusive license or other disposition of all or
substantially all of the consolidated assets of the Company and its Subsidiaries, other than a
sale, lease, license or other disposition of all or substantially all of the consolidated assets of
the Company and its Subsidiaries to an Entity, more than fifty percent (50%) of the combined voting
power of the voting securities of which are Owned by stockholders of the Company in substantially
the same proportions as their Ownership of the outstanding voting securities of the Company
immediately prior to such sale, lease, license or other disposition; or

          (v) individuals who, on the date this Plan is adopted by the Board, are members of the Board
(the “Incumbent Board”) cease for any reason to constitute at least a majority of the members of
the Board; provided, however, that if the appointment or election (or nomination for election) of
any new Board member was approved or recommended by a majority vote of the members of the Incumbent
Board then still in office, such new member shall, for purposes of this Plan, be considered as a
member of the Incumbent Board.

     The term Change in Control shall not include a sale of assets, merger or other transaction
effected exclusively for the purpose of changing the domicile of the Company.

     Notwithstanding the foregoing or any other provision of this Plan, the definition of Change in
Control (or any analogous term) in an individual written agreement between the Company or any
Affiliate and the Participant shall supersede the foregoing definition with respect to Stock Awards
subject to such agreement; provided, however, that if no definition of Change in Control or any
analogous term is set forth in such an individual written agreement, the foregoing definition shall
apply.

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

     (j) “Committee” means a committee of one (1) or more members of the Board to whom authority
has been delegated by the Board in accordance with Section 3(d).

     (k) “Common Stock” means the common stock of the Company.

     (l) “Company” means Onyx Pharmaceuticals, Inc., a Delaware corporation.

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     (m) “Consultant” means any person, including an advisor, who is (i) engaged by the Company or
an Affiliate to render consulting or advisory services and is compensated for such services, or
(ii) serving as a member of the Board of Directors of an Affiliate and is compensated for such
services. However, service solely as a Director, or payment of a fee for such service, shall not
cause a Director to be considered a “Consultant” for purposes of the Plan.

     (n) “Continuous Service” means that the Participant’s service with the Company or an
Affiliate, whether as an Employee, Director or Consultant, is not interrupted or terminated. A
change in the capacity in which the Participant renders service to the Company or an Affiliate as
an Employee, Consultant or Director or a change in the entity for which the Participant renders
such service, provided that there is no interruption or termination of the Participant’s service
with the Company or an Affiliate, shall not terminate a Participant’s Continuous Service. For
example, a change in status from an employee of the Company to a consultant to an Affiliate or to a
Director shall not constitute an interruption of Continuous Service. To the extent permitted by
law, the Board or the chief executive officer of the Company, in that party’s sole discretion, may
determine whether Continuous Service shall be considered interrupted in the case of any leave of
absence approved by that party, including sick leave, military leave or any other personal leave.
Notwithstanding the foregoing, a leave of absence shall be treated as Continuous Service for
purposes of vesting in a Stock Award only to such extent as may be provided in the Company’s leave
of absence policy or in the written terms of the Participant’s leave of absence.

     (o) “Corporate Transaction” means the occurrence, in a single transaction or in a series of
related transactions, of any one or more of the following events:

          (i) a sale or other disposition of all or substantially all, as determined by the Board in its
sole discretion, of the consolidated assets of the Company and its Subsidiaries;

          (ii) a sale or other disposition of at least ninety percent (90%) of the outstanding
securities of the Company;

          (iii) the consummation of a merger, consolidation or similar transaction following which the
Company is not the surviving corporation; or

          (iv) the consummation of a merger, consolidation or similar transaction following which the
Company is the surviving corporation but the shares of Common Stock outstanding immediately
preceding the merger, consolidation or similar transaction are converted or exchanged by virtue of
the merger, consolidation or similar transaction into other property, whether in the form of
securities, cash or otherwise.

     (p) “Covered Employee” means the chief executive officer and the four (4) other highest
compensated officers of the Company for whom total compensation is required to be
reported to stockholders under the Exchange Act, as determined for purposes of Section 162(m)
of the Code.

     (q) “Director” means a member of the Board.

     (r) “Disability” means the permanent and total disability of a person within the meaning of
Section 22(e)(3) of the Code.

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     (s) “Eligible Director” means a Director who is not an Employee and is eligible to participate
in the Non-Discretionary Grant Program.

     (t) “Employee” means any person employed by the Company or an Affiliate. However, service
solely as a Director, or payment of a fee for such services, shall not cause a Director to be
considered an “Employee” for purposes of the Plan.

     (u) “Entity” means a corporation, partnership or other entity.

     (v) “Exchange Act” means the Securities Exchange Act of 1934, as amended.

     (w) “Exchange Act Person” means any natural person, Entity or “group” (within the meaning of
Section 13(d) or 14(d) of the Exchange Act), except that “Exchange Act Person” shall not include
(i) the Company or any Subsidiary of the Company, (ii) any employee benefit plan of the Company or
any Subsidiary of the Company or any trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any Subsidiary of the Company, (iii) an underwriter
temporarily holding securities pursuant to an offering of such securities, (iv) an Entity Owned,
directly or indirectly, by the stockholders of the Company in substantially the same proportions as
their Ownership of stock of the Company; or (v) any natural person, Entity or “group” (within the
meaning of Section 13(d) or 14(d) of the Exchange Act) that, as of the effective date of the Plan
as set forth in Section 15, is the Owner, directly or indirectly, of securities of the Company
representing more than fifty percent (50%) of the combined voting power of the Company’s then
outstanding securities.

     (x) “Fair Market Value” means, as of any date, the value of the Common Stock determined as
follows:

          (i) If the Common Stock is listed on any established stock exchange or traded on the Nasdaq
National Market or the Nasdaq SmallCap Market, the Fair Market Value of a share of Common Stock
shall be the closing sales price for such stock (or the closing bid, if no sales were reported) as
quoted on such exchange or market (or the exchange or market with the greatest volume of trading in
the Common Stock) on the date of determination, as reported in The Wall Street Journal or such
other source as the Board deems reliable. Unless otherwise provided by the Board, if there is no
closing sales price (or closing bid if no sales were reported) for the Common Stock on the date of
determination, then the Fair Market Value shall be the closing selling price (or closing bid if no
sales were reported) on the last preceding date for which such quotation exists.

          (ii) In the absence of such markets for the Common Stock, the Fair Market Value shall be
determined by the Board in good faith.

     (y) “Incentive Stock Option” means an Option intended to qualify as an incentive stock option
within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

     (z) “Initial Award” means an Option granted to an Eligible Director who meets the specified
criteria pursuant to Section 8(c)(i).

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     (aa) “Non-Discretionary Grant Program” means the non-discretionary grant program in effect
under Section 8 of the Plan.

     (bb) “Non-Employee Director” means a Director who either (i) is not a current employee or
officer of the Company or an Affiliate, does not receive compensation, either directly or
indirectly, from the Company or an Affiliate for services rendered as a consultant or in any
capacity other than as a Director (except for an amount as to which disclosure would not be
required under Item 404(a) of Regulation S-K promulgated pursuant to the Securities Act
(“Regulation S-K”)), does not possess an interest in any other transaction for which disclosure
would be required under Item 404(a) of Regulation S-K, and is not engaged in a business
relationship for which disclosure would be required pursuant to Item 404(b) of Regulation S-K; or
(ii) is otherwise considered a “non-employee director” for purposes of Rule 16b-3.

     (cc) “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive Stock
Option.

     (dd) “Officer” means a person who is an officer of the Company within the meaning of Section
16 of the Exchange Act and the rules and regulations promulgated thereunder.

     (ee) “Option” means an Incentive Stock Option or a Nonstatutory Stock Option to purchase
shares of Common Stock granted pursuant to the Plan.

     (ff) “Option Agreement” means a written agreement between the Company and an Optionholder
evidencing the terms and conditions of an Option grant. Each Option Agreement shall be subject to
the terms and conditions of the Plan.

     (gg) “Optionholder” means a person to whom an Option is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Option.

     (hh) “Other Stock Award” means an award based in whole or in part by reference to the Common
Stock which is granted pursuant to the terms and conditions of Section 7(e).

     (ii) “Other Stock Award Agreement” means a written agreement between the Company and a holder
of an Other Stock Award evidencing the terms and conditions of an Other Stock Award grant. Each
Other Stock Award Agreement shall be subject to the terms and conditions of the Plan.

     (jj) “Outside Director” means a Director who either (i) is not a current employee of the
Company or an “affiliated corporation” (within the meaning of Treasury Regulations promulgated
under Section 162(m) of the Code), is not a former employee of the Company or an “affiliated
corporation” who receives compensation for prior services (other than benefits under a
tax-qualified retirement plan) during the taxable year, has not been an officer of the Company
or an “affiliated corporation,” and does not receive remuneration from the Company or an
“affiliated corporation,” either directly or indirectly, in any capacity other than as a Director,
or (ii) is otherwise considered an “outside director” for purposes of Section 162(m) of the Code.

     (kk) “Own,” “Owned,” “Owner,” “Ownership” A person or Entity shall be deemed to “Own,” to
have “Owned,” to be the “Owner” of, or to have acquired “Ownership” of

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securities if such person or
Entity, directly or indirectly, through any contract, arrangement, understanding, relationship or
otherwise, has or shares voting power, which includes the power to vote or to direct the voting,
with respect to such securities.

     (ll) “Participant” means a person to whom an Award is granted pursuant to the Plan or, if
applicable, such other person who holds an outstanding Award.

     (mm) “Performance Cash Award” means an award of cash granted pursuant to the terms and
conditions of Section 11(h)(ii).

     (nn) “Performance Criteria” means the one or more criteria that the Board shall select for
purposes of establishing the Performance Goals for a Performance Period. The Performance Criteria
that shall be used to establish such Performance Goals may be based on any one of, or combination
of, the following: (i) earnings per share; (ii) earnings before interest, taxes and depreciation;
(iii) earnings before interest, taxes, depreciation and amortization (EBITDA); (iv) net earnings;
(v) return on equity; (vi) return on assets, investment, or capital employed; (vii) operating
margin; (viii) gross margin; (ix) operating income; (x) net income (before or after taxes); (xi)
net operating income; (xii) net operating income after tax; (xiii) pre- and after-tax income; (xiv)
pre-tax profit; (xv) operating cash flow; (xvi) sales or revenue targets; (xvii) increases in
revenue or product revenue; (xvii) expenses and cost reduction goals; (xix) improvement in or
attainment of expense levels; (xx) improvement in or attainment of working capital levels; (xxi)
economic value added; (xxii) market share; (xxiii) cash flow; (xxiv) cash flow per share; (xxv)
share price performance; (xxvi) debt reduction; (xxvii) implementation or completion of projects or
processes; (xxviii) customer satisfaction; (xxix) total stockholder return; (xxx) stockholders’
equity; and (xxxi) other measures of performance selected by the Board. Partial achievement of the
specified criteria may result in the payment or vesting corresponding to the degree of achievement
as specified in the Stock Award Agreement or the written terms of a Performance Cash Award. The
Board shall, in its sole discretion, define the manner of calculating the Performance Criteria it
selects to use for a Performance Period.

     (oo) “Performance Goals” means, for a Performance Period, the one or more goals established by
the Board for the Performance Period based upon the Performance Criteria. Performance Goals may be
based on a Company-wide basis, with respect to one or more business units, divisions, Affiliates,
or business segments, and in either absolute terms or relative to the performance of one or more
comparable companies or a relevant index. The Board is authorized to make adjustments in the
method of calculating the attainment of Performance Goals for a Performance Period as follows: (i)
to exclude restructuring and/or other nonrecurring charges; (ii) to exclude exchange rate effects,
as applicable, for non-U.S. dollar denominated net sales and operating earnings; (iii) to exclude
the effects of changes to generally accepted accounting standards required by the Financial
Accounting Standards Board; (iv) to exclude the
effects of any statutory adjustments to corporate tax rates; and (v) to exclude the effects of
any “extraordinary items” as determined under generally accepted accounting principles. The Board
also retains the discretion to reduce or eliminate the compensation or economic benefit due upon
attainment of Performance Goals.

     (pp) “Performance Period” means the one or more periods of time, which may be of varying and
overlapping durations, as the Committee may select, over which the attainment of

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one or more
Performance Goals will be measured for the purpose of determining a Participant’s right to and the
payment of a Stock Award or a Performance Cash Award.

     (qq) “Performance Stock Award” means a Stock Award granted under the terms and conditions of
Section 11(h)(i).

     (rr) “Plan” means this Onyx Pharmaceuticals, Inc. 2005 Equity Incentive Plan.

     (ss) “Prior Plans” means the Company’s 1996 Equity Incentive Plan and 1996 Non-Employee
Directors’ Stock Option Plan as in effect immediately prior to the effective date of the Plan.

     (tt) “Rule 16b-3” means Rule 16b-3 promulgated under the Exchange Act or any successor to Rule
16b-3, as in effect from time to time.

     (uu) “Securities Act” means the Securities Act of 1933, as amended.

     (vv) “Stock Appreciation Right” means a right to receive the appreciation on Common Stock that
is granted pursuant to the terms and conditions of Section 7(d).

     (ww) “Stock Appreciation Right Agreement” means a written agreement between the Company and a
holder of a Stock Appreciation Right evidencing the terms and conditions of a Stock Appreciation
Right grant. Each Stock Appreciation Right Agreement shall be subject to the terms and conditions
of the Plan.

     (xx) “Stock Award” means any right granted under the Plan, including an Option, a Stock
Purchase Award, Stock Bonus Award, a Stock Appreciation Right, a Stock Unit Award, an Other Stock
Award, or a Performance Stock Award.

     (yy) “Stock Award Agreement” means a written agreement between the Company and a Participant
evidencing the terms and conditions of a Stock Award grant. Each Stock Award Agreement shall be
subject to the terms and conditions of the Plan.

     (zz) “Stock Bonus Award” means an award of shares of Common Stock which is granted pursuant to
the terms and conditions of Sections 7(b) and 8(c)(ii)(3).

     (aaa) “Stock Bonus Award Agreement” means a written agreement between the Company and a holder
of a Stock Bonus Award evidencing the terms and conditions of a Stock Bonus Award grant. Each
Stock Bonus Award Agreement shall be subject to the terms and conditions of the Plan.

     (bbb) “Stock Purchase Award” means an award of shares of Common Stock which is granted
pursuant to the terms and conditions of Section 7(a).

     (ccc) “Stock Purchase Award Agreement” means a written agreement between the Company and a
holder of a Stock Purchase Award evidencing the terms and conditions of a Stock Purchase Award
grant. Each Stock Purchase Award Agreement shall be subject to the terms and conditions of the
Plan.

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     (ddd) “Stock Unit Award” means a right to receive shares of Common Stock which is granted
pursuant to the terms and conditions of Sections 7(c) and 8(c)(ii)(3).

     (eee) “Stock Unit Award Agreement” means a written agreement between the Company and a holder
of a Stock Unit Award evidencing the terms and conditions of a Stock Unit Award grant. Each Stock
Unit Award Agreement shall be subject to the terms and conditions of the Plan.

     (fff) “Subsidiary” means, with respect to the Company, (i) any corporation of which more than
fifty percent (50%) of the outstanding capital stock having ordinary voting power to elect a
majority of the board of directors of such corporation (irrespective of whether, at the time, stock
of any other class or classes of such corporation shall have or might have voting power by reason
of the happening of any contingency) is at the time, directly or indirectly, Owned by the Company,
and (ii) any partnership in which the Company has a direct or indirect interest (whether in the
form of voting or participation in profits or capital contribution) of more than fifty percent
(50%).

     (ggg) “Ten Percent Stockholder” means a person who Owns (or is deemed to Own pursuant to
Section 424(d) of the Code) stock possessing more than ten percent (10%) of the total combined
voting power of all classes of stock of the Company or any Affiliate.

3. Administration.

     (a) Administration by Board. The Board shall administer the Plan unless and until the Board
delegates administration of the Plan to a Committee, as provided in Section 3(d). However, the
Board may not delegate administration of the Non-Discretionary Grant Program.

     (b) Powers of Board. Except with respect to the Non-Discretionary Grant Program, the Board
shall have the power, subject to, and within the limitations of, the express provisions of the
Plan:

          (i) To determine from time to time (1) which of the persons eligible under the Plan shall be
granted Awards; (2) when and how each Award shall be granted; (3) what type or combination of
types of Award shall be granted; (4) the provisions of each Award granted (which need not be
identical), including the time or times when a person shall be permitted to receive cash or Common
Stock pursuant to an Award; and (5) the number of shares of Common Stock with respect to which a
Stock Award shall be granted to each such person.

          (ii) To construe and interpret the Plan and Awards granted under it, and to establish, amend
and revoke rules and regulations for its administration. The Board, in the
exercise of this power, may correct any defect, omission or inconsistency in the Plan or in
any Stock Award Agreement or in the written terms of a Performance Cash Award, in a manner and to
the extent it shall deem necessary or expedient to make the Plan fully effective.

          (iii) To amend the Plan or an Award as provided in Section 13.

          (iv) To terminate or suspend the Plan as provided in Section 14.

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          (v) Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in conflict with the
provisions of the Plan.

          (vi) To adopt such procedures and sub-plans as are necessary or appropriate to permit
participation in the Plan by individuals who are foreign nationals or employed outside the United
States.

     (c) Administration of Non-Discretionary Grant Program. The Board shall have the power,
subject to and within the limitations of, the express provisions of the Non-Discretionary Grant
Program:

          (i) To determine the provisions of each Stock Award to the extent not specified in the
Non-Discretionary Grant Program.

          (ii) To construe and interpret the Non-Discretionary Grant Program and the Stock Awards
granted under it, and to establish, amend and revoke rules and regulations for its administration.
The Board, in the exercise of this power, may correct any defect, omission or inconsistency in the
Non-Discretionary Grant Program or in any Stock Award Agreement, in a manner and to the extent it
shall deem necessary or expedient to make the Non-Discretionary Grant Program fully effective.

          (iii) To amend the Non-Discretionary Grant Program or a Stock Award thereunder as provided in
Section 13.

          (iv) Generally, to exercise such powers and to perform such acts as the Board deems necessary
or expedient to promote the best interests of the Company and that are not in conflict with the
provisions of the Non-Discretionary Grant Program.

     (d) Delegation to Committee.

          (i) General. The Board may delegate some or all of the administration of the Plan (except the
Non-Discretionary Grant Program) to a Committee or Committees. If administration is delegated to a
Committee, the Committee shall have, in connection with the administration of the Plan, the powers
theretofore possessed by the Board that have been delegated to the Committee, including the power
to delegate to a subcommittee any of the administrative powers the Committee is authorized to
exercise (and references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the provisions of the
Plan, as may be adopted from time to time by the Board. The Board may retain the authority to
concurrently administer the Plan with the
Committee and may, at any time, revest in the Board some or all of the powers previously
delegated.

          (ii) Section 162(m) and Rule 16b-3 Compliance. In the sole discretion of the Board, the
Committee may consist solely of two or more Outside Directors, in accordance with Section 162(m) of
the Code, and/or solely of two or more Non-Employee Directors, in accordance with Rule 16b-3. In
addition, the Board or the Committee, in its sole discretion, may (1) delegate to a committee of
one or more members of the Board who need not be Outside

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Directors the authority to grant Awards to
eligible persons who are either (a) not then Covered Employees and are not expected to be Covered
Employees at the time of recognition of income resulting from such Award, or (b) not persons with
respect to whom the Company wishes to comply with Section 162(m) of the Code, and/or (2) delegate
to a committee of one or more members of the Board who need not be Non-Employee Directors the
authority to grant Stock Awards to eligible persons who are not then subject to Section 16 of the
Exchange Act.

     (e) Delegation to an Officer. The Board may delegate to one or more Officers of the Company
the authority to do one or both of the following (i) designate Officers and Employees of the
Company or any of its Subsidiaries to be recipients of Awards and the terms thereof, and (ii)
determine the number of shares of Common Stock to be subject to Stock Awards granted to such
Officers and Employees of the Company; provided, however, that the Board resolutions regarding such
delegation shall specify the total number of shares of Common Stock that may be subject to the
Stock Awards granted by such Officer and that such Officer may not grant a Stock Award to himself
or herself. Notwithstanding anything to the contrary in this Section 3(e), the Board may not
delegate to an Officer authority to determine the Fair Market Value of the Common Stock pursuant to
Section 2(x)(ii) above.

     (f) Effect of Board’s Decision. All determinations, interpretations and constructions made by
the Board in good faith shall not be subject to review by any person and shall be final, binding
and conclusive on all persons.

     (g) Cancellation and Re-Grant of Stock Awards. Neither the Board nor any Committee shall have
the authority to: (i) reprice any outstanding Stock Awards under the Plan, or (ii) cancel and
re-grant any outstanding Stock Awards under the Plan, unless the stockholders of the Company have
approved such an action within twelve (12) months prior to such an event.

4. Shares Subject to the Plan.

     (a) Share Reserve. Subject to the provisions of Section 12(a) relating to Capitalization
Adjustments, the number of shares of Common Stock that may be issued pursuant to Stock Awards shall
not exceed, in the aggregate, seven million five hundred sixty thousand forty-five (7,560,045)
shares of Common Stock. Such number of shares reserved for issuance consists of (i) the number of
shares remaining available for issuance under the Prior Plans, including shares subject to
outstanding stock awards under the Prior Plans, and (ii) an additional three million nine hundred
ninety thousand (3,990,000) shares to be approved by the stockholders at the 2005 Annual Meeting as
part of the approval of this Plan. Subject to Section 4(b), the number of shares available for
issuance under the Plan shall be reduced by: (i) one (1) share for each share of stock issued
pursuant to (A) an Option granted under Section 6 or 8, or
(B) a Stock Appreciation Right granted under Section 7(d) with respect to which the strike
price is at least one hundred percent (100%) of the Fair Market Value of the underlying Common
Stock on the date of grant; and (ii) one and three tenths (1.3) shares for each share of Common
Stock issued pursuant to (A) a Stock Purchase Award, Stock Bonus Award, Stock Unit Award, or Other
Stock Award granted under Section 7, or (B) a Stock Appreciation Right granted under Section 7(d)
with respect to which the strike price is less than one hundred percent (100%) of the Fair Market
Value of the underlying Common Stock on the date of grant. Shares may be issued in connection with
a merger or acquisition as permitted by NASD Rule 4350(i)(1)(A)(iii) or, if

11.

 

applicable, NYSE Listed
Company Manual Section 303A(8) and such issuance shall not reduce the number of shares available
for issuance under the Plan.

     (b) Reversion of Shares to the Share Reserve.

          (i) Shares Available For Subsequent Issuance. If any (i) Stock Award shall for any reason
expire or otherwise terminate, in whole or in part, without having been exercised in full, (ii)
shares of Common Stock issued to a Participant pursuant to a Stock Award (including the Stock
Awards transferred from the Prior Plans on the effective date of this Plan) are forfeited to or
repurchased by the Company at their original exercise or purchase price pursuant to the Company’s
reacquisition or repurchase rights under the Plan, including any forfeiture or repurchase caused by
the failure to meet a contingency or condition required for the vesting of such shares, or (iii)
Stock Award is settled in cash, then the shares of Common Stock not issued under such Stock Award,
or forfeited to or repurchased by the Company, shall revert to and again become available for
issuance under the Plan. To the extent there is issued a share of Common Stock pursuant to a Stock
Award that counted as one and three tenths (1.3) shares against the number of shares available for
issuance under the Plan pursuant to Section 4(a) and such share of Common Stock again becomes
available for issuance under the Plan pursuant to this Section 4(b)(i), then the number of shares
of Common Stock available for issuance under the Plan shall increase by one and three tenths (1.3)
shares.

          (ii) Shares Not Available for Subsequent Issuance. If any shares subject to a Stock Award are
not delivered to a Participant because the Stock Award is exercised through a reduction of shares
subject to the Stock Award (i.e., “net exercised”) or an appreciation distribution in respect of a
Stock Appreciation Right is paid in shares of Common Stock, the number of shares subject to the
Stock Award that are not delivered to the Participant shall not remain available for subsequent
issuance under the Plan. If any shares subject to a Stock Award are not delivered to a Participant
because such shares are withheld in satisfaction of the withholding of taxes incurred in connection
with the exercise of an Option, Stock Appreciation Right, or the issuance of shares under a Stock
Purchase Award, Stock Bonus Award, or Stock Unit Award, the number of shares that are not delivered
to the Participant shall not remain available for subsequent issuance under the Plan. If the
exercise price of any Stock Award is satisfied by tendering shares of Common Stock held by the
Participant (either by actual delivery or attestation), then the number of shares so tendered shall
not remain available for subsequent issuance under the Plan.

          (iii) Incentive Stock Option Limit. Notwithstanding anything to the contrary in this Section
4(b), subject to the provisions of Section 12(a) relating to Capitalization Adjustments the
aggregate maximum number of shares of Common Stock that may be issued
pursuant to the exercise of Incentive Stock Options shall be seven million five hundred sixty
thousand forty-five (7,560,045) shares of Common Stock.

     (c) Source of Shares. The stock issuable under the Plan shall be shares of authorized but
unissued or reacquired Common Stock, including shares repurchased by the Company on the open
market.

12.

 

5. Eligibility.

     (a) Eligibility for Specific Stock Awards. Incentive Stock Options may be granted only to
Employees. Stock Awards other than Incentive Stock Options may be granted to Employees, Directors
and Consultants. Non-discretionary Stock Awards granted under the Non-Discretionary Grant Program
in Section 8 may be granted only to Eligible Directors.

     (b) Ten Percent Stockholders. A Ten Percent Stockholder shall not be granted an Incentive
Stock Option unless the exercise price of such Option is at least one hundred ten percent (110%) of
the Fair Market Value of the Common Stock on the date of grant and the Option is not exercisable
after the expiration of five (5) years from the date of grant.

     (c) Section 162(m) Limitation. Subject to the provisions of Section 12(a) relating to
Capitalization Adjustments, at such time as the Company may be subject to the applicable provisions
of Section 162(m) of the Code, no Employee shall be eligible to be granted during any calendar year
Stock Awards whose value is determined by reference to an increase over an exercise or strike price
of at least one hundred percent (100%) of the Fair Market Value of the Common Stock on the date the
Stock Award is granted covering more than one million (1,000,000) shares of Common Stock.

     (d) Consultants. A Consultant shall not be eligible for the grant of a Stock Award if, at the
time of grant, a Form S-8 Registration Statement under the Securities Act (“Form S-8”) is not
available to register either the offer or the sale of the Company’s securities to such Consultant
because of the nature of the services that the Consultant is providing to the Company, because the
Consultant is not a natural person, or because of any other rule governing the use of Form S-8.

     (e) Limitation
on Certain Stock Awards Granted to New Hires. No more than ten
percent (10%) of the total number of shares of Common Stock subject
to the Plan pursuant to Section 4(a) may be issued as Stock Awards
that (i) are granted to newly-hired Employees, and (ii) vest at a
rate more favorable to the Employee than over a three (3)-year period
measured from the date of hire as permitted for newly-hired Employees
by Sections 7(a)(iii), 7(b)(ii), 7(c)(ii), and 7(e)(ii).

6. Option Provisions.

     Each Option shall be in such form and shall contain such terms and conditions as the Board
shall deem appropriate. All Options shall be separately designated Incentive Stock Options or
Nonstatutory Stock Options at the time of grant, and, if certificates are issued, a separate
certificate or certificates shall be issued for shares of Common Stock purchased on exercise of
each type of Option. The provisions of separate Options need not be identical; provided, however,
that each Option Agreement shall include (through incorporation of provisions hereof by reference
in the Option or otherwise) the substance of each of the following provisions:

     (a) Term. No Option shall be exercisable after the expiration of ten (10) years from the date
of grant, or such shorter period specified in the Option Agreement; provided, however,
that an Incentive Stock Option granted to a Ten Percent Stockholder shall be subject to the
provisions of Section 5(b).

     (b) Exercise Price of an Incentive Stock Option. Subject to the provisions of Section 5(b)
regarding Ten Percent Stockholders, the exercise price of each Incentive Stock Option shall be not
less than one hundred percent (100%) of the Fair Market Value of the Common Stock subject to the
Option on the date the Option is granted. Notwithstanding the foregoing, an Incentive Stock Option
may be granted with an exercise price lower than that set

13.

 

forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option in a manner
consistent with the provisions of Section 424(a) of the Code.

     (c) Exercise Price of a Nonstatutory Stock Option. The exercise price of each Nonstatutory
Stock Option shall be not less than one hundred percent (100%) of the Fair Market Value of the
Common Stock subject to the Option on the date the Option is granted. Notwithstanding the
foregoing, a Nonstatutory Stock Option may be granted with an exercise price lower than that set
forth in the preceding sentence if such Option is granted pursuant to an assumption or substitution
for another option in a manner consistent with the provisions of Section 424(a) of the Code.

     (d) Consideration. The purchase price of Common Stock acquired pursuant to the exercise of an
Option shall be paid, to the extent permitted by applicable law and as determined by the Board in
its sole discretion, by any combination of the methods of payment set forth below. The Board shall
have the authority to grant Options that do not permit all of the following methods of payment (or
otherwise restrict the ability to use certain methods) and to grant Options that require the
consent of the Company to utilize a particular method of payment. The methods of payment permitted
by this Section 6(d) are:

          (i) by cash or check;

          (ii) pursuant to a program developed under Regulation T as promulgated by the Federal Reserve
Board that, prior to the issuance of Common Stock, results in either the receipt of cash (or check)
by the Company or the receipt of irrevocable instructions to pay the aggregate exercise price to
the Company from the sales proceeds;

          (iii) by delivery to the Company (either by actual delivery or attestation) of shares of
Common Stock;

          (iv) by a “net exercise” arrangement pursuant to which the Company will reduce the number of
shares of Common Stock issued upon exercise by the largest whole number of shares with a Fair
Market Value that does not exceed the aggregate exercise price; provided, however, the Company
shall accept a cash or other payment from the Participant to the extent of any remaining balance of
the aggregate exercise price not satisfied by such reduction in the number of whole shares to be
issued; provided, however, that shares of Common Stock will no longer be outstanding under an
Option and will not be exercisable thereafter to the extent that (i) shares are used to pay the
exercise price pursuant to the “net exercise,” (ii) shares are
delivered to the Participant as a result of such exercise, and (iii) shares are withheld to
satisfy tax withholding obligations; or

          (v) in any other form of legal consideration that may be acceptable to the Board.

     (e) Transferability of Options. The Board may, in its sole discretion, impose such
limitations on the transferability of Options as the Board shall determine. In the absence of such
a determination by the Board to the contrary, the following restrictions on the transferability of
Options shall apply:

14.

 

          (i) Restrictions on Transfer. An Option shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder.

          (ii) Domestic Relations Orders. Notwithstanding the foregoing, an Option may be transferred
pursuant to a domestic relations order.

          (iii) Beneficiary Designation. Notwithstanding the foregoing, the Optionholder may, by
delivering written notice to the Company, in a form provided by or otherwise satisfactory to the
Company, designate a third party who, in the event of the death of the Optionholder, shall
thereafter be entitled to exercise the Option.

     (f) Vesting of Options Generally. The total number of shares of Common Stock subject to an
Option may vest and therefore become exercisable in periodic installments that may or may not be
equal. The Option may be subject to such other terms and conditions on the time or times when it
may or may not be exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The provisions of this
Section 6(f) are subject to any Option provisions governing the minimum number of shares of Common
Stock as to which an Option may be exercised. Notwithstanding the foregoing and except for Options
granted to Non-Employee Directors, no Option shall vest at a rate more favorable to the
Optionholder than over a one (1)-year period measured from the date of grant (or the date of hire
for newly-hired Optionholders) except in the event of death or Disability, upon a Corporate
Transaction in which such Option is not assumed or continued, or upon a Change in Control.

     (g) Termination of Continuous Service. In the event that an Optionholder’s Continuous Service
terminates (other than upon the Optionholder’s death or Disability), the Optionholder may exercise
his or her Option (to the extent that the Optionholder was entitled to exercise such Option as of
the date of termination of Continuous Service) but only within such period of time ending on the
earlier of (i) the date three (3) months following the termination of the Optionholder’s Continuous
Service (or such longer or shorter period specified in the Option Agreement), or (ii) the
expiration of the term of the Option as set forth in the Option Agreement. If, after termination
of Continuous Service, the Optionholder does not exercise his or her Option within the time
specified herein or in the Option Agreement (as applicable), the Option shall terminate.

     (h) Extension of Termination Date. An Optionholder’s Option Agreement may provide that if the
exercise of the Option following the termination of the Optionholder’s Continuous Service (other
than upon the Optionholder’s death or Disability) would be prohibited at any time solely because
the issuance of shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the expiration of a period of
three (3) months after the termination of the Optionholder’s Continuous Service during which the
exercise of the Option would not be in violation of such registration requirements, or (ii) the
expiration of the term of the Option as set forth in the Option Agreement.

15.

 

     (i) Disability of Optionholder. In the event that an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s Disability, the Optionholder may exercise his or her
Option (to the extent that the Optionholder was entitled to exercise such Option as of the date of
termination of Continuous Service), but only within such period of time ending on the earlier of
(i) the date twelve (12) months following such termination of Continuous Service (or such longer or
shorter period specified in the Option Agreement), or (ii) the expiration of the term of the Option
as set forth in the Option Agreement. If, after termination of Continuous Service, the
Optionholder does not exercise his or her Option within the time specified herein or in the Option
Agreement (as applicable), the Option shall terminate.

     (j) Death of Optionholder. In the event that (i) an Optionholder’s Continuous Service
terminates as a result of the Optionholder’s death, or (ii) the Optionholder dies within the period
(if any) specified in the Option Agreement after the termination of the Optionholder’s Continuous
Service for a reason other than death, then the Option may be exercised (to the extent the
Optionholder was entitled to exercise such Option as of the date of death) by the Optionholder’s
estate, by a person who acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionholder’s death, but only within the period
ending on the earlier of (i) the date eighteen (18) months following the date of death (or such
longer or shorter period specified in the Option Agreement), or (ii) the expiration of the term of
such Option as set forth in the Option Agreement. If, after the Optionholder’s death, the Option
is not exercised within the time specified herein or in the Option Agreement (as applicable), the
Option shall terminate.

7. Provisions of Stock Awards other than Options.

     (a) Stock Purchase Awards. Each Stock Purchase Award Agreement shall be in such form and
shall contain such terms and conditions as the Board shall deem appropriate. To the extent
consistent with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (i)
held in book entry form subject to the Company’s instructions until any restrictions relating to
the Stock Purchase Award lapse; or (ii) evidenced by a certificate, which certificate shall be held
in such form and manner as determined by the Board. The terms and conditions of Stock Purchase
Award Agreements may change from time to time, and the terms and conditions of separate Stock
Purchase Award Agreements need not be identical; provided, however, that each Stock Purchase Award
Agreement shall include (through incorporation of the provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

          (i) Purchase Price. At the time of the grant of a Stock Purchase Award, the Board will
determine the price to be paid by the Participant for each share subject to the Stock Purchase
Award. To the extent required by applicable law, the price to be paid by the Participant for each
share of the Stock Purchase Award will not be less than the par value of a share of Common Stock.

          (ii) Consideration. At the time of the grant of a Stock Purchase Award, the Board will
determine the consideration permissible for the payment of the purchase price of the Stock Purchase
Award. The purchase price of Common Stock acquired pursuant to the Stock Purchase Award shall be
paid either: (i) in cash or by check at the time of purchase, (ii) by past

16.

 

or future services rendered to the Company or an Affiliate, or (iii) in any other form of legal consideration that may
be acceptable to the Board in its sole discretion and permissible under applicable law.

          (iii) Vesting. Shares of Common Stock acquired under a Stock Purchase Award may be subject to
a share repurchase right or option in favor of the Company in accordance with a vesting schedule to
be determined by the Board. Notwithstanding the foregoing and except for Stock Purchase Awards
granted to Non-Employee Directors, no Stock Purchase Award shall vest at a rate more favorable to
the Participant than over a three (3)-year period measured from the date of grant except in the
event of death or Disability, upon a Corporate Transaction in which such Stock Purchase Award is
not assumed or continued, or upon a Change in Control. However, a Stock Purchase Award granted to
a newly-hired Employee as an inducement to become an Employee may not vest at a rate more favorable
to the Participant than over a one (1)-year period measured from the date of hire except in the
event of death or Disability, upon a Corporate Transaction in which such Stock Purchase Award is
not assumed or continued, or upon a Change in Control.

          (iv) Termination of Participant’s Continuous Service. In the event that a Participant’s
Continuous Service terminates, the Company shall have the right, but not the obligation, to
repurchase or otherwise reacquire, any or all of the shares of Common Stock held by the Participant
that have not vested as of the date of termination under the terms of the Stock Purchase Award
Agreement. At the Board’s election, the price paid for all shares of Common Stock so repurchased
or reacquired by the Company may be at the lesser of: (i) the Fair Market Value on the relevant
date, or (ii) the Participant’s original cost for such shares. The Company shall not be required
to exercise its repurchase or reacquisition option until at least six (6) months (or such longer or
shorter period of time necessary to avoid a charge to earnings for financial accounting purposes)
have elapsed following the Participant’s purchase of the shares of stock acquired pursuant to the
Stock Purchase Award unless otherwise determined by the Board or provided in the Stock Purchase
Award Agreement.

          (v) Transferability. Rights to purchase or receive shares of Common Stock granted under a
Stock Purchase Award shall be transferable by the Participant only upon such terms and conditions
as are set forth in the Stock Purchase Award Agreement, as the Board shall determine in its sole
discretion, and so long as Common Stock awarded under the Stock Purchase Award remains subject to
the terms of the Stock Purchase Award Agreement.

     (b) Stock Bonus Awards. Each Stock Bonus Award Agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. To the extent consistent
with the Company’s Bylaws, at the Board’s election, shares of Common Stock may be (i) held in book
entry form subject to the Company’s instructions until any restrictions relating to the Stock Bonus
Award lapse; or (ii) evidenced by a certificate, which certificate shall be held in such form and
manner as determined by the Board. The terms and conditions of Stock Bonus Award Agreements may
change from time to time, and the terms and conditions of separate Stock Bonus Award Agreements
need not be identical; provided, however, that each Stock Bonus Award Agreement shall include
(through incorporation of provisions hereof by reference in the agreement or otherwise) the
substance of each of the following provisions:

17.

 

          (i) Consideration. A Stock Bonus Award may be awarded in consideration for (i) past or future
services rendered to the Company or an Affiliate, or (ii) any other form of legal consideration
that may be acceptable to the Board, in its sole discretion, and permissible under applicable law.

          (ii) Vesting. Shares of Common Stock awarded under a Stock Bonus Award Agreement may be
subject to forfeiture to the Company in accordance with a vesting schedule to be determined by the
Board. Notwithstanding the foregoing and except for Stock Bonus Awards granted to Non-Employee
Directors, no Stock Bonus Award shall vest at a rate more favorable to the Participant than over a
three (3)-year period measured from the date of grant except in the event of death or Disability,
upon a Corporate Transaction in which such Stock Bonus Award is not assumed or continued, or upon a
Change in Control. However, a Stock Bonus Award granted to a newly-hired Employee as an inducement
to become an Employee may not vest at a rate more favorable to the Participant than over a one
(1)-year period measured from the date of hire except in the event of death or Disability, upon a
Corporate Transaction in which such Stock Bonus Award is not assumed or continued, or upon a Change
in Control.

          (iii) Termination of Participant’s Continuous Service. In the event a Participant’s
Continuous Service terminates, the Company may receive via a forfeiture condition, any or all of
the shares of Common Stock held by the Participant which have not vested as of the date of
termination of Continuous Service under the terms of the Stock Bonus Award Agreement.

          (iv) Transferability. Rights to acquire shares of Common Stock under the Stock Bonus Award
Agreement shall be transferable by the Participant only upon such terms and conditions as are set
forth in the Stock Bonus Award Agreement, as the Board shall determine in its sole discretion, so
long as Common Stock awarded under the Stock Bonus Award Agreement remains subject to the terms of
the Stock Bonus Award Agreement.

     (c) Stock Unit Awards. Each Stock Unit Award Agreement shall be in such form and shall
contain such terms and conditions as the Board shall deem appropriate. The terms and conditions of
Stock Unit Award Agreements may change from time to time, and the terms and conditions of separate
Stock Unit Award Agreements need not be identical; provided, however, that each Stock Unit Award
Agreement shall include (through incorporation of the provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

          (i) Consideration. At the time of grant of a Stock Unit Award, the Board will determine the
consideration, if any, to be paid by the Participant upon delivery of each share of Common Stock
subject to the Stock Unit Award. The consideration to be paid (if any) by the Participant for each
share of Common Stock subject to a Stock Unit Award may be paid in any form of legal consideration
that may be acceptable to the Board in its sole discretion and permissible under applicable law.

          (ii) Vesting. At the time of the grant of a Stock Unit Award, the Board may impose such
restrictions or conditions on the vesting of the Stock Unit Award as it, in its sole discretion,
deems appropriate. Notwithstanding the foregoing and except for Stock Unit Awards

18.

 

granted to Non-Employee Directors, no Stock Unit Award shall vest at a rate more favorable to the Participant
than over a three (3)-year period measured from the date of grant except in the event of death or
Disability, upon a Corporate Transaction in which such Stock Unit Award is not assumed or
continued, or upon a Change in Control. However, a Stock Unit Award granted to a newly-hired
Employee as an inducement to become an Employee may not vest at a rate more favorable to the
Participant than over a one (1)-year period measured from the date of hire except in the event of
death or Disability, upon a Corporate Transaction in which such Stock Unit Award is not assumed or
continued, or upon a Change in Control.

          (iii) Payment. A Stock Unit Award may be settled by the delivery of shares of Common Stock,
their cash equivalent, any combination thereof or in any other form of consideration, as determined
by the Board and contained in the Stock Unit Award Agreement.

          (iv) Additional Restrictions. At the time of the grant of a Stock Unit Award, the Board, as
it deems appropriate, may impose such restrictions or conditions that delay the delivery of the
shares of Common Stock (or their cash equivalent) subject to a Stock Unit Award to a time following
the vesting of such Stock Unit Award.

          (v) Dividend Equivalents. Dividend equivalents may be credited in respect of shares of Common
Stock covered by a Stock Unit Award, as determined by the Board and contained in the Stock Unit
Award Agreement. At the sole discretion of the Board, such dividend equivalents may be converted
into additional shares of Common Stock covered by the Stock Unit Award in such manner as determined
by the Board. Any additional shares covered by the Stock Unit Award credited by reason of such
dividend equivalents will be subject to all the terms and conditions of the underlying Stock Unit
Award Agreement to which they relate.

          (vi) Termination of Participant’s Continuous Service. Except as otherwise provided in the
applicable Stock Unit Award Agreement, such portion of the Stock Unit Award that has not vested
will be forfeited upon the Participant’s termination of Continuous Service.

     (d) Stock Appreciation Rights. Each Stock Appreciation Right Agreement shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate. Stock
Appreciation Rights may be granted as stand-alone Stock Awards or in tandem with other Stock
Awards. The terms and conditions of Stock Appreciation Right Agreements may change from time to
time, and the terms and conditions of separate Stock Appreciation Right Agreements need not be
identical; provided, however, that each Stock Appreciation Right
Agreement shall include (through incorporation of the provisions hereof by reference in the
agreement or otherwise) the substance of each of the following provisions:

          (i) Term. No Stock Appreciation Right shall be exercisable after the expiration of ten (10)
years from the date of grant, or such shorter period specified in the Stock Appreciation Right
Agreement.

          (ii) Strike Price. Each Stock Appreciation Right will be denominated in shares of Common
Stock equivalents. The strike price of each Stock Appreciation Right granted as a stand-alone or
tandem Stock Award shall not be less than one hundred percent (100%) of the

19.

 

Fair Market Value of
the Common Stock equivalents subject to the Stock Appreciation Right on the date of grant.

          (iii) Calculation of Appreciation. The appreciation distribution payable on the exercise of a
Stock Appreciation Right will be not greater than an amount equal to the excess of (i) the
aggregate Fair Market Value (on the date of the exercise of the Stock Appreciation Right) of a
number of shares of Common Stock equal to the number of share of Common Stock equivalents in which
the Participant is vested under such Stock Appreciation Right, and with respect to which the
Participant is exercising the Stock Appreciation Right on such date, over (ii) the strike price
that will be determined by the Board at the time of grant of the Stock Appreciation Right.

          (iv) Vesting. At the time of the grant of a Stock Appreciation Right, the Board may impose
such restrictions or conditions to the vesting of such Stock Appreciation Right as it, in its sole
discretion, deems appropriate. Notwithstanding the foregoing and except for Stock Appreciation
Rights granted to Non-Employee Directors, no Stock Appreciation Right shall vest at a rate more
favorable to the Participant than over a one (1)-year period measured from the date of grant (or
the date of hire for newly-hired Participants) except in the event of death or Disability, upon a
Corporate Transaction in which such Stock Appreciation Right is not assumed or continued, or upon a
Change in Control.

          (v) Exercise. To exercise any outstanding Stock Appreciation Right, the Participant must
provide written notice of exercise to the Company in compliance with the provisions of the Stock
Appreciation Right Agreement evidencing such Stock Appreciation Right.

          (vi) Payment. The appreciation distribution in respect of a Stock Appreciation Right may be
paid in Common Stock, in cash, in any combination of the two or in any other form of consideration,
as determined by the Board and set forth in the Stock Appreciation Right Agreement evidencing such
Stock Appreciation Right.

          (vii) Termination of Continuous Service. In the event that a Participant’s Continuous Service
terminates, the Participant may exercise his or her Stock Appreciation Right (to the extent that
the Participant was entitled to exercise such Stock Appreciation Right as of the date of
termination) but only within such period of time ending on the earlier of (i) the date three (3)
months following the termination of the Participant’s Continuous Service (or such longer or shorter
period specified in the Stock Appreciation Right Agreement), or (ii) the expiration of the
term of the Stock Appreciation Right as set forth in the Stock Appreciation Right Agreement.
If, after termination, the Participant does not exercise his or her Stock Appreciation Right within
the time specified herein or in the Stock Appreciation Right Agreement (as applicable), the Stock
Appreciation Right shall terminate.

     (e) Other Stock Awards.

          (i) General. Other forms of Stock Awards valued in whole or in part by reference to, or
otherwise based on, Common Stock may be granted either alone or in addition to Stock Awards
provided for under Section 6 and the preceding provisions of this Section 7.

20.

 

Subject to the
provisions of the Plan, the Board shall have sole and complete authority to determine the persons
to whom and the time or times at which such Other Stock Awards will be granted, the number of
shares of Common Stock (or the cash equivalent thereof) to be granted pursuant to such Other Stock
Awards and all other terms and conditions of such Other Stock Awards.

          (ii) Vesting. Notwithstanding the foregoing and except for Other Stock Awards granted to
Non-Employee Directors, no Other Stock Award shall vest at a rate more favorable to the Participant
than over a three (3)-year period measured from the date of grant except in the event of death or
Disability, upon a Corporate Transaction in which such Other Stock Award is not assumed or
continued, or upon a Change in Control. However, an Other Stock Award granted to a newly-hired
Employee as an inducement to become an Employee may not vest at a rate more favorable to the
Participant than over a one (1)-year period measured from the date of hire except in the event of
death or Disability, upon a Corporate Transaction in which such Other Stock Award is not assumed or
continued, or upon a Change in Control.

8. Non-Discretionary Grants to Eligible Directors.

     (a) General. The Non-Discretionary Grant Program in this Section 8 allows Eligible Directors
to receive Stock Awards automatically at designated intervals over their period of Continuous
Service on the Board. The Non-Discretionary Grant Program is intended as the successor to and
continuation of the Company’s 1996 Non-Employee Directors’ Stock Option Plan.

     (b) Eligibility. The Stock Awards shall automatically be granted to all Eligible Directors
who meet the specified criteria.

     (c) Non-Discretionary Grants.

          (i) Initial Award. Without any further action of the Board, each person who on or after the
Annual Meeting in 2005 is elected or appointed for the first time to be an Eligible Director
automatically shall, upon the date of his or her initial election or appointment as an Eligible
Director, be granted an Option to purchase twenty thousand (20,000) shares of Common Stock on the
terms and conditions set forth in Section 8(d).

          (ii) Annual Awards. Without any further action of the Board, on the anniversary date each
year of the date on which an Option is granted to an Eligible Director either (i) pursuant to
Section 8(c)(i), or (ii) pursuant to Subparagraph 5(a) or 5(b) of the 1996
Non-Employee Directors’ Stock Option Plan, each such Eligible Director whose Continuous
Service has not then terminated shall automatically be granted an Annual Award as described below.

               (1) Form of Annual Award. On or before December 31 of any calendar year, the Board shall
determine if all Annual Awards to be granted in the subsequent calendar year shall be in the form
of Options described in Section 8(d) or in the form of Stock Bonus Awards described in Section
8(e). If the Board does not make such a determination on or before December 31 of a calendar year,
all Annual Awards to be granted in the subsequent calendar year shall be in the form of Options
described in Section 8(d). With respect to all

21.

 

Annual Awards to be granted in 2005, such Annual
Awards shall be in the form of Options described in Section 8(d).

               (2) Option. If the Annual Award is in the form of an Option, the Annual Award shall be a
Nonstatutory Stock option to purchase ten thousand (10,000) shares of Common Stock on the terms and
conditions set forth in Section 8(d).

               (3) Stock Bonus Award or Stock Unit Award. If the Annual Award is in the form of a Stock
Bonus Award, the Annual Award shall not be more favorable to an Eligible Director than that number
of unvested shares of Common Stock, rounded down to the next whole number of shares, determined as
the quotient obtained by dividing (i) the “fair value” of the Option specified in Section
8(c)(ii)(2) determined under generally accepted accounting principles and using the option pricing
model employed by the Company for purposes of estimating the value of compensatory stock options
for financial reporting purposes as reported in the Annual Report filed on Form 10-K or Form 10-KSB
(or any successor forms) with the Securities and Exchange Commission in the calendar year preceding
the date of grant, by (ii) the Fair Market Value per share of the Common Stock on the date of
grant. In addition, the Board shall have the authority to provide that an Annual Award in the form
of a Stock Bonus Award shall instead be in the form of a Stock Unit Award.

     (d) Non-Discretionary Option Grant Provisions.

          (i) Option Type. Each Option granted hereunder shall be a Nonstatutory Stock Option.

          (ii) Term. No Option shall be exercisable after the expiration of ten (10) years from the
date it was granted.

          (iii) Exercise Price. The exercise price of each Option shall be one hundred percent (100%)
of the Fair Market Value of the Common Stock subject to the Option on the date the Option is
granted.

          (iv) Corporate Transaction. In the event of (i) a Corporate Transaction, or (ii) any Exchange
Act Person becoming the Owner, directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s then outstanding
securities, then, to the extent not prohibited by applicable law, the time during which Options
granted to Eligible Directors pursuant to the Non-Discretionary Grant Program under this Section 8
may be exercised shall (contingent upon the effectiveness of such
transaction) be accelerated in full to a date prior to the effective time of such transaction,
and such Options shall terminate if not exercised at or prior to such effective time.

          (v) Remaining Terms. The remaining terms and conditions of each Option shall be as set forth
in an Option Agreement in the form adopted from time to time by the Board; provided, however, that
the terms of such Option Agreement shall be consistent with the terms of the Plan.

22.

 

     (e) Non-Discretionary Stock Bonus Award or Stock Unit Award Provisions.

          (i) Consideration. Payment for the Stock Bonus Award or Stock Unit Award shall be for past or
future services rendered to the Company or an Affiliate. In the event that additional
consideration is required to be paid so that the shares of Common Stock subject to the Stock Bonus
Award or Stock Unit Award shall be deemed fully paid and nonassessable, the Board shall determine
the amount and character of such additional consideration.

          (ii) Corporate Transaction. In the event of (i) a Corporate Transaction, or (ii) any Exchange
Act Person becoming the Owner, directly or indirectly, of securities of the Company representing
more than fifty percent (50%) of the combined voting power of the Company’s then outstanding
securities, then, to the extent not prohibited by applicable law, the vesting of Stock Bonus
Awards and Stock Unit Awards granted to Eligible Directors pursuant to the Non-Discretionary Grant
Program under this Section 8 shall (contingent upon the effectiveness of such transaction)
accelerate in full to a date prior to the effective time of such transaction and, in the case of
Stock Unit Awards, shall be settled on such date.

          (iii) Remaining Terms. The remaining terms and conditions of each grant of Stock Bonus Awards
and Stock Unit Awards shall be as set forth in a Stock Bonus Award Agreement or Stock Unit Award
Agreement in a form adopted from time to time by the Board; provided, however, that the terms of
such Stock Bonus Award Agreement or Stock Unit Award Agreement shall be consistent with the
provisions of the Plan.

9. Covenants of the Company.

     (a) Availability of Shares. During the terms of the Stock Awards, the Company shall keep
available at all times the number of shares of Common Stock required to satisfy such Stock Awards.

     (b) Securities Law Compliance. The Company shall seek to obtain from each regulatory
commission or agency having jurisdiction over the Plan such authority as may be required to grant
Stock Awards and to issue and sell shares of Common Stock upon exercise of the Stock Awards;
provided, however, that this undertaking shall not require the Company to register under the
Securities Act the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain from any such
regulatory commission or agency the authority that counsel for the Company deems necessary for the
lawful issuance and sale of Common Stock under the Plan, the Company shall be relieved from any
liability for failure to issue and sell Common Stock upon exercise of such Stock Awards unless and
until such authority is obtained.

10. Use of Proceeds from Sales of Common Stock.

     Proceeds from the sale of shares of Common Stock pursuant to Stock Awards shall constitute
general funds of the Company.

23.

 

11. Miscellaneous.

     (a) Acceleration of Exercisability and Vesting. To the extent consistent with Sections 6(f),
7(a)(iii), 7(b)(ii), 7(c)(ii), 7(d)(iv), and 7(e)(ii), the Board shall have the power to accelerate
the time at which a Stock Award may first be exercised or the time during which a Stock Award or
any part thereof will vest in accordance with the Plan, notwithstanding the provisions in the Stock
Award stating the time at which it may first be exercised or the time during which it will vest.

     (b) Stockholder Rights. No Participant shall be deemed to be the holder of, or to have any of
the rights of a holder with respect to, any shares of Common Stock subject to such Stock Award
unless and until such Participant has satisfied all requirements for exercise of the Stock Award
pursuant to its terms.

     (c) No Employment or Other Service Rights. Nothing in the Plan, any Stock Award Agreement or
other instrument executed thereunder or in connection with any Award granted pursuant to the Plan
shall confer upon any Participant any right to continue to serve the Company or an Affiliate in the
capacity in effect at the time the Stock Award was granted or shall affect the right of the Company
or an Affiliate to terminate (i) the employment of an Employee with or without notice and with or
without cause, (ii) the service of a Consultant pursuant to the terms of such Consultant’s
agreement with the Company or an Affiliate, or (iii) the service of a Director pursuant to the
Bylaws of the Company or an Affiliate, and any applicable provisions of the corporate law of the
state in which the Company or the Affiliate is incorporated, as the case may be.

     (d) Incentive Stock Option $100,000 Limitation. To the extent that the aggregate Fair Market
Value (determined at the time of grant) of Common Stock with respect to which Incentive Stock
Options are exercisable for the first time by any Optionholder during any calendar year (under all
plans of the Company and any Affiliates) exceeds one hundred thousand dollars ($100,000), the
Options or portions thereof that exceed such limit (according to the order in which they were
granted) shall be treated as Nonstatutory Stock Options, notwithstanding any contrary provision of
the applicable Option Agreement(s).

     (e) Investment Assurances. The Company may require a Participant, as a condition of
exercising or acquiring Common Stock under any Stock Award, (i) to give written assurances
satisfactory to the Company as to the Participant’s knowledge and experience in financial and
business matters and/or to employ a purchaser representative reasonably satisfactory to the Company
who is knowledgeable and experienced in financial and business matters and that he or she is
capable of evaluating, alone or together with the purchaser representative, the merits and risks of
exercising the Stock Award; and (ii) to give written assurances satisfactory to the Company stating
that the Participant is acquiring Common Stock subject to the Stock Award for the Participant’s own
account and not with any present intention of selling or otherwise
distributing the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (i) the issuance of the shares upon the exercise or
acquisition of Common Stock under the Stock Award has been registered under a then currently
effective registration statement under the Securities Act, or (ii) as to any particular
requirement, a determination is made by counsel for the Company that such requirement need not be
met in the

24.

 

circumstances under the then applicable securities laws. The Company may, upon advice
of counsel to the Company, place legends on stock certificates issued under the Plan as such
counsel deems necessary or appropriate in order to comply with applicable securities laws,
including, but not limited to, legends restricting the transfer of the Common Stock.

     (f) Withholding Obligations. To the extent provided by the terms of a Stock Award Agreement,
the Company may, in its sole discretion, satisfy any federal, state or local tax withholding
obligation relating to a Stock Award by any of the following means (in addition to the Company’s
right to withhold from any compensation paid to the Participant by the Company) or by a combination
of such means: (i) causing the Participant to tender a cash payment; (ii) withholding shares of
Common Stock from the shares of Common Stock issued or otherwise issuable to the Participant in
connection with the Stock Award; or (iii) by such other method as may be set forth in the Stock
Award Agreement.

     (g) Electronic Delivery. Any reference herein to a “written” agreement or document shall
include any agreement or document delivered electronically or posted on the Company’s intranet.

     (h) Performance Awards.

          (i) Performance Stock Awards. A Performance Stock Award is a Stock Award that may be granted,
may vest, or may be exercised based upon the attainment during a Performance Period of certain
Performance Goals. A Performance Stock Award may, but need not, require the completion of a
specified period of Continuous Service. The length of any Performance Period, the Performance Goals
to be achieved during the Performance Period, and the measure of whether and to what degree such
Performance Goals have been attained shall be conclusively determined by the Committee in its sole
discretion. The maximum benefit to be received by any Participant in any calendar year
attributable to Stock Awards described in this Section 11(h)(i) shall not exceed the value of one
million (1,000,000) shares of Common Stock.

          (ii) Performance Cash Awards. A Performance Cash Award is a cash award that may be granted
upon the attainment during a Performance Period of certain Performance Goals. A Performance Cash
Award may also require the completion of a specified period of Continuous Service. The length of
any Performance Period, the Performance Goals to be achieved during the Performance Period, and the
measure of whether and to what degree such Performance Goals have been attained shall be
conclusively determined by the Committee in its sole discretion. The maximum benefit to be
received by any Participant in any calendar year attributable to cash awards described in this
Section 11(h)(ii) shall not exceed two million dollars ($2,000,000).

12. Adjustments upon Changes in Common Stock; Corporate Transactions.

     (a) Capitalization Adjustments. If any change is made in, or other events occur with respect
to, the Common Stock subject to the Plan or subject to any Stock Award after the effective date of
the Plan set forth in Section 15 without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock dividend, dividend
in property other than cash, stock split, liquidating dividend, combination of

25.

 

shares, exchange of
shares, change in corporate structure or other transaction not involving the receipt of
consideration by the Company (each a “Capitalization Adjustment”)), the Board shall appropriately
adjust: (i) the class(es) and maximum number of securities subject to the Plan pursuant to Section
4(a), (ii) the class(es) and maximum number of securities that may be issued pursuant to the
exercise of Incentive Stock Options pursuant to Section 4(b), (iii) the class(es) and maximum
number of securities that may be awarded to any person pursuant to Sections 5(c) and 11(h), (iv)
the class(es) and number of securities subject to each Stock Award under the Non-Discretionary
Grant Program under Section 8, and (v) the class(es) and number of securities and price per share
of stock subject to outstanding Stock Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (Notwithstanding the foregoing, the
conversion of any convertible securities of the Company shall not be treated as a transaction
“without receipt of consideration” by the Company.)

     (b) Dissolution or Liquidation. In the event of a dissolution or liquidation of the Company,
all outstanding Stock Awards (other than Stock Awards consisting of vested and outstanding shares
of Common Stock not subject to the Company’s right of repurchase) shall terminate immediately prior
to the completion of such dissolution or liquidation, and the shares of Common Stock subject to the
Company’s repurchase option may be repurchased by the Company notwithstanding the fact that the
holder of such Stock Award is providing Continuous Service, provided, however, that the Board may,
in its sole discretion, cause some or all Stock Awards to become fully vested, exercisable and/or
no longer subject to repurchase or forfeiture (to the extent such Stock Awards have not previously
expired or terminated) before the dissolution or liquidation is completed but contingent on its
completion.

     (c) Corporate Transaction. The following provisions shall apply to Stock Awards (except those
granted under the Non-Discretionary Grant Program) in the event of a Corporate Transaction unless
otherwise provided in a written agreement between the Company or any Affiliate and the holder of
the Stock Award:

          (i) Stock Awards May Be Assumed. In the event of a Corporate Transaction, any surviving
corporation or acquiring corporation (or the surviving or acquiring corporation’s parent company)
may assume or continue any or all Stock Awards outstanding under the Plan or may substitute similar
stock awards for Stock Awards outstanding under the Plan (including, but not limited to, awards to
acquire the same consideration paid to the stockholders of the Company pursuant to the Corporate
Transaction), and any reacquisition or repurchase rights held by the Company in respect of Common
Stock issued pursuant to Stock Awards may be assigned by the Company to the successor of the
Company (or the successor’s parent company, if any), in connection with such Corporate Transaction.
A surviving corporation or acquiring corporation may choose to assume or continue only a portion
of a Stock Award or substitute a similar stock award for only a portion of a Stock Award. The
terms of any
assumption, continuation or substitution shall be set by the Board in accordance with the
provisions of Section 3(b).

          (ii) Stock Awards Held by Current Participants. In the event of a Corporate Transaction in
which the surviving corporation or acquiring corporation (or its parent company) does not assume or
continue such outstanding Stock Awards or substitute similar stock awards for such outstanding
Stock Awards, then with respect to Stock Awards that have

26.

 

not been assumed, continued or
substituted and that are held by Participants whose Continuous Service has not terminated prior to
the effective time of the Corporate Transaction (referred to as the “Current Participants”), the
vesting of such Stock Awards (and, if applicable, the time at which such Stock Awards may be
exercised) shall (contingent upon the effectiveness of the Corporate Transaction) be accelerated in
full to a date prior to the effective time of such Corporate Transaction as the Board shall
determine (or, if the Board shall not determine such a date, to the date that is five (5) days
prior to the effective time of the Corporate Transaction), and such Stock Awards shall terminate if
not exercised (if applicable) at or prior to the effective time of the Corporate Transaction, and
any reacquisition or repurchase rights held by the Company with respect to such Stock Awards shall
lapse (contingent upon the effectiveness of the Corporate Transaction).

          (iii) Stock Awards Held by Former Participants. In the event of a Corporate Transaction in
which the surviving corporation or acquiring corporation (or its parent company) does not assume or
continue such outstanding Stock Awards or substitute similar stock awards for such outstanding
Stock Awards, then with respect to Stock Awards that have not been assumed, continued or
substituted and that are held by persons other than Current Participants, the vesting of such Stock
Awards (and, if applicable, the time at which such Stock Award may be exercised) shall not be
accelerated and such Stock Awards (other than a Stock Award consisting of vested and outstanding
shares of Common Stock not subject to the Company’s right of repurchase) shall terminate if not
exercised (if applicable) prior to the effective time of the Corporate Transaction; provided,
however, that any reacquisition or repurchase rights held by the Company with respect to such Stock
Awards shall not terminate and may continue to be exercised notwithstanding the Corporate
Transaction.

          (iv) Payment for Stock Awards in Lieu of Exercise. Notwithstanding the foregoing, in the
event a Stock Award will terminate if not exercised prior to the effective time of a Corporate
Transaction, the Board may provide, in its sole discretion, that the holder of such Stock Award may
not exercise such Stock Award but will receive a payment, in such form as may be determined by the
Board, equal in value to the excess, if any, of (i) the value of the property the holder of the
Stock Award would have received upon the exercise of the Stock Award, over (ii) any exercise price
payable by such holder in connection with such exercise.

     (d) Change in Control. A Stock Award may be subject to additional acceleration of vesting and
exercisability upon or after a Change in Control as may be provided in the Stock Award Agreement
for such Stock Award or as may be provided in any other written agreement between the Company or
any Affiliate and the Participant, but in the absence of such provision, no such acceleration shall
occur.

     (e) Parachute Payments.

          (i) Except as otherwise provided in a written agreement between the Company and a Participant,
if the acceleration of the vesting and exercisability of Stock Awards provided for in Sections
8(d)(iv), 8(e)(ii) and 12(c)(ii), together with payments and other benefits of a Participant,
(collectively, the “Payment”) (i) constitute a “parachute payment” within the meaning of Section
280G of the Code, or any comparable successor provisions, and (ii) but for this Section 12(e) would
be subject to the excise tax imposed by Section 4999 of the Code, or

27.

 

any comparable successor
provisions (the “Excise Tax”), then such Payment shall be either (1) provided to such Participant
in full, or (2) provided to such Participant as to such lesser extent that would result in no
portion of such Payment being subject to the Excise Tax, whichever of the foregoing amounts, when
taking into account applicable federal, state, local and foreign income and employment taxes, the
Excise Tax, and any other applicable taxes, results in the receipt by such Participant, on an
after-tax basis, of the greatest amount of the Payment, notwithstanding that all or some portion of
the Payment may be subject to the Excise Tax.

          (ii) Except as otherwise provided in a written agreement between the Company and a
Participant, any determination required under this Section 12(e) shall be made in writing in good
faith by the Accountant. If a reduction in the Payment is to be made as provided above, reductions
shall occur in the following order unless the Participant elects in writing a different order
(provided, however, that such election shall be subject to Company approval if made on or after the
date that triggers the Payment or a portion thereof): (i) reduction of cash payments; (ii)
cancellation of accelerated vesting of Stock Awards other than Options; (iii) cancellation of
accelerated vesting of Options; and (iv) reduction of other benefits paid to the Participant. If
acceleration of vesting of Stock Awards is to be reduced, such acceleration of vesting shall be
cancelled in the reverse order of date of grant of Stock Awards (i.e., the earliest granted Stock
Award cancelled last) unless the Participant elects in writing a different order for cancellation.

          (iii) For purposes of making the calculations required by this Section 12(e), the Accountant
may make reasonable assumptions and approximations concerning applicable taxes and may rely on
reasonable, good faith interpretations concerning the application of the Code and other applicable
legal authority. The Company and the Participant shall furnish to the Accountant such information
and documents as the Accountant may reasonably request in order to make such a determination. The
Company shall bear all costs the Accountant may reasonably incur in connection with any
calculations contemplated by this Section 12(e).

          (iv) If, notwithstanding any reduction described above, the Internal Revenue Service (the
“IRS”) determines that the Participant is liable for the Excise Tax as a result of the Payment,
then the Participant shall be obligated to pay back to the Company, within thirty (30) days after a
final IRS determination or, in the event that the Participant challenges the final IRS
determination, a final judicial determination, a portion of the Payment (the “Repayment Amount”).
The Repayment Amount with respect to the Payment shall be the smallest such amount, if any, as
shall be required to be paid to the Company so that the Participant’s net after-tax proceeds with
respect to the Payment (after taking into account the payment of the Excise Tax and all other
applicable taxes imposed on the Payment) shall be maximized. The Repayment Amount with respect to
the Payment shall be zero if a Repayment Amount of more
than zero would not result in the Participant’s net after-tax proceeds with respect to the
Payment being maximized. If the Excise Tax is not eliminated pursuant to this paragraph, the
Participant shall pay the Excise Tax.

          (v) Notwithstanding any other provision of this Section 12(e), if (i) there is a reduction in
the Payment as described above, (ii) the IRS later determines that the Participant is liable for
the Excise Tax, the payment of which would result in the maximization of the Participant’s net
after-tax proceeds of the Payment (calculated as if the Payment had not

28.

 

previously been reduced),
and (iii) the Participant pays the Excise Tax, then the Company shall pay or otherwise provide to
the Participant that portion of the Payment that was reduced pursuant to this Section 12(e)
contemporaneously or as soon as administratively possible after the Participant pays the Excise Tax
so that the Participant’s net after-tax proceeds with respect to the Payment are maximized.

          (vi) If the Participant either (i) brings any action to enforce rights pursuant to this
Section 12(e), or (ii) defends any legal challenge to his or her rights under this Section 12(e),
the Participant shall be entitled to recover attorneys’ fees and costs incurred in connection with
such action, regardless of the outcome of such action; provided, however, that if such action is
commenced by the Participant, the court finds that the action was brought in good faith.

13. Amendment of the Plan and Awards.

     (a) Amendment
of Plan. Subject to the limitations of applicable law, the Board
at any time, and from time to time, may amend the Plan. However,
stockholder approval shall be required for any amendment of the Plan
that (i) materially increases the number of shares of Common
Stock available for issuance under the Plan, (ii) materially
expands the class of individuals eligible to receive Awards under the
Plan, (iii) materially increases the benefits accruing to
Participants under the Plan or materially reduces the price at which
shares of Common Stock may be issued or purchased under the Plan,
(iv) materially extends the term of the Plan, or
(v) expands the types of Awards available for issuance under the
Plan.

     (b) Stockholder Approval. The Board, in its sole discretion, may submit any other amendment
to the Plan for stockholder approval, including, but not limited to, amendments to the Plan
intended to satisfy the requirements of Section 162(m) of the Code and the regulations thereunder
regarding the exclusion of performance-based compensation from the limit on corporate deductibility
of compensation paid to Covered Employees.

     (c) Contemplated Amendments. It is expressly contemplated that the Board may amend the Plan
in any respect the Board deems necessary or advisable to provide eligible Employees with the
maximum benefits provided or to be provided under the provisions of the Code and the regulations
promulgated thereunder relating to Incentive Stock Options and/or to bring the Plan and/or
Incentive Stock Options granted under it into compliance therewith.

     (d) No Impairment of Rights. Rights under any Award granted before amendment of the Plan
shall not be impaired by any amendment of the Plan unless (i) the Company requests the consent of
the affected Participant, and (ii) such Participant consents in writing.

     (e) Amendment of Awards. The Board, at any time and from time to time, may amend the terms of
any one or more Awards, including, but not limited to, amendments to provide terms more favorable
than previously provided in the Stock Award Agreement or the written terms of a Performance Cash
Award, subject to any specified limits in the Plan that are
not subject to Board discretion; provided, however, that the rights under any Award shall not
be impaired by any such amendment unless (i) the Company requests the consent of the affected
Participant, and (ii) such Participant consents in writing.

14. Termination or Suspension of the Plan.

     (a) Plan Term. The Board may suspend or terminate the Plan at any time. Unless sooner
terminated, the Plan shall terminate on the day before the tenth (10th) anniversary of the

29.

 

earlier
of (i) the date the Plan is adopted by the Board, or (ii) the date the Plan is approved by the
stockholders of the Company. No Awards may be granted under the Plan while the Plan is suspended
or after it is terminated.

     (b) No Impairment of Rights. Suspension or termination of the Plan shall not impair rights
and obligations under any Award granted while the Plan is in effect except with the written consent
of the affected Participant.

15. Effective Date of Plan.

     The Plan shall become effective upon approval by the stockholders at the 2005 Annual Meeting.

16. Choice of Law.

     The law of the State of Delaware shall govern all questions concerning the construction,
validity and interpretation of this Plan, without regard to that state’s conflict of laws rules.

30.exv4w1

 

Exhibit 4.1

EXECUTION COPY

 

 

AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M

Class A-1 3.301% Asset Backed Notes

Class A-2 3.78% Asset Backed Notes

Class A-3 4.05% Asset Backed Notes

Class A-4 Floating Rate Asset Backed Notes

INDENTURE

Dated as of May 25, 2005

WELLS FARGO BANK, NATIONAL ASSOCIATION

Trustee and Trust Collateral Agent

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Page	 
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	 	 	3	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 1.1	 	Definitions	 	 	3	 
	 
	 	SECTION 1.2	 	Incorporation by Reference of Trust Indenture Act	 	 	11	 
	 
	 	SECTION 1.3	 	Rules of Construction	 	 	11	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE II THE NOTES	 	 	12	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 2.1	 	Form	 	 	12	 
	 
	 	SECTION 2.2	 	Execution, Authentication and Delivery	 	 	12	 
	 
	 	SECTION 2.3	 	Temporary Notes	 	 	13	 
	 
	 	SECTION 2.4	 	Registration; Registration of Transfer and Exchange	 	 	13	 
	 
	 	SECTION 2.5	 	Mutilated, Destroyed, Lost or Stolen Notes	 	 	15	 
	 
	 	SECTION 2.6	 	Persons Deemed Owner	 	 	15	 
	 
	 	SECTION 2.7	 	Payment of Principal and Interest; Defaulted Interest	 	 	16	 
	 
	 	SECTION 2.8	 	Cancellation	 	 	17	 
	 
	 	SECTION 2.9	 	Release of Collateral	 	 	17	 
	 
	 	SECTION 2.10	 	Book-Entry Notes	 	 	17	 
	 
	 	SECTION 2.11	 	Notices to Clearing Agency	 	 	18	 
	 
	 	SECTION 2.12	 	Definitive Notes	 	 	18	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE III COVENANTS	 	 	19	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 3.1	 	Payment of Principal and Interest	 	 	19	 
	 
	 	SECTION 3.2	 	Maintenance of Office or Agency	 	 	19	 
	 
	 	SECTION 3.3	 	Money for Payments to be Held in Trust	 	 	19	 
	 
	 	SECTION 3.4	 	Existence	 	 	21	 
	 
	 	SECTION 3.5	 	Protection of Trust Estate	 	 	21	 
	 
	 	SECTION 3.6	 	Opinions as to Trust Estate	 	 	22	 
	 
	 	SECTION 3.7	 	Performance of Obligations; Servicing of Receivables	 	 	22	 
	 
	 	SECTION 3.8	 	Negative Covenants	 	 	23	 
	 
	 	SECTION 3.9	 	Annual Statement as to Compliance	 	 	24	 
	 
	 	SECTION 3.10	 	Issuer May Consolidate, Etc. Only on Certain Terms	 	 	24	 
	 
	 	SECTION 3.11	 	Successor or Transferee	 	 	26	 
	 
	 	SECTION 3.12	 	No Other Business	 	 	26	 
	 
	 	SECTION 3.13	 	No Borrowing	 	 	26	 
	 
	 	SECTION 3.14	 	Servicer’s Obligations	 	 	27	 
	 
	 	SECTION 3.15	 	Guarantees, Loans, Advances and Other Liabilities	 	 	27	 
	 
	 	SECTION 3.16	 	Capital Expenditures	 	 	27	 
	 
	 	SECTION 3.17	 	Compliance with Laws	 	 	27	 
	 
	 	SECTION 3.18	 	Restricted Payments	 	 	27	 
	 
	 	SECTION 3.19	 	Notice of Events of Default	 	 	27	 
	 
	 	SECTION 3.20	 	Further Instruments and Acts	 	 	27	 
	 
	 	SECTION 3.21	 	Amendments of Sale and Servicing Agreement and Trust Agreement	 	 	27	 
	 
	 	SECTION 3.22	 	Income Tax Characterization	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IV SATISFACTION AND DISCHARGE	 	 	28	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 4.1	 	Satisfaction and Discharge of Indenture	 	 	28	 
	 
	 	SECTION 4.2	 	Application of Trust Money	 	 	29	 
	 
	 	SECTION 4.3	 	Repayment of Moneys Held by Note Paying Agent	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE V REMEDIES	 	 	29	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.1	 	Events of Default	 	 	29	 
	 
	 	SECTION 5.2	 	Rights Upon Event of Default	 	 	31	 

i

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 5.3	 	Collection of Indebtedness and Suits for Enforcement by Trustee	 	 	32	 
	 
	 	SECTION 5.4	 	Remedies	 	 	35	 
	 
	 	SECTION 5.5	 	Optional Preservation of the Receivables	 	 	36	 
	 
	 	SECTION 5.6	 	Priorities	 	 	36	 
	 
	 	SECTION 5.7	 	Limitation of Suits	 	 	37	 
	 
	 	SECTION 5.8	 	Unconditional Rights of Noteholders To Receive Principal and Interest	 	 	38	 
	 
	 	SECTION 5.9	 	Restoration of Rights and Remedies	 	 	38	 
	 
	 	SECTION 5.10	 	Rights and Remedies Cumulative	 	 	38	 
	 
	 	SECTION 5.11	 	Delay or Omission Not a Waiver	 	 	38	 
	 
	 	SECTION 5.12	 	Control by Noteholders	 	 	38	 
	 
	 	SECTION 5.13	 	Waiver of Past Defaults	 	 	39	 
	 
	 	SECTION 5.14	 	Undertaking for Costs	 	 	39	 
	 
	 	SECTION 5.15	 	Waiver of Stay or Extension Laws	 	 	40	 
	 
	 	SECTION 5.16	 	Action on Notes	 	 	40	 
	 
	 	SECTION 5.17	 	Performance and Enforcement of Certain Obligations	 	 	40	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VI THE TRUSTEE AND THE TRUST COLLATERAL AGENT	 	 	41	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 6.1	 	Duties of Trustee	 	 	41	 
	 
	 	SECTION 6.2	 	Rights of Trustee	 	 	42	 
	 
	 	SECTION 6.3	 	Individual Rights of Trustee	 	 	44	 
	 
	 	SECTION 6.4	 	Trustee’s Disclaimer	 	 	44	 
	 
	 	SECTION 6.5	 	Notice of Defaults	 	 	44	 
	 
	 	SECTION 6.6	 	Reports by Trustee to Holders	 	 	44	 
	 
	 	SECTION 6.7	 	Compensation and Indemnity	 	 	44	 
	 
	 	SECTION 6.8	 	Replacement of Trustee	 	 	45	 
	 
	 	SECTION 6.9	 	Successor Trustee by Merger	 	 	46	 
	 
	 	SECTION 6.10	 	Appointment of Co-Trustee or Separate Trustee	 	 	47	 
	 
	 	SECTION 6.11	 	Eligibility: Disqualification	 	 	48	 
	 
	 	SECTION 6.12	 	Preferential Collection of Claims Against Issuer	 	 	48	 
	 
	 	SECTION 6.13	 	Appointment and Powers	 	 	48	 
	 
	 	SECTION 6.14	 	Performance of Duties	 	 	49	 
	 
	 	SECTION 6.15	 	Limitation on Liability	 	 	49	 
	 
	 	SECTION 6.16	 	Reliance Upon Documents	 	 	49	 
	 
	 	SECTION 6.17	 	Successor Trust Collateral Agent	 	 	50	 
	 
	 	SECTION 6.18	 	Compensation	 	 	51	 
	 
	 	SECTION 6.19	 	Representations and Warranties of the Trust Collateral Agent and the Issuer	 	 	51	 
	 
	 	SECTION 6.20	 	Waiver of Setoffs	 	 	52	 
	 
	 	SECTION 6.21	 	Control by the Controlling Party	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VII NOTEHOLDERS’ LISTS AND REPORTS	 	 	52	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 7.1	 	Issuer To Furnish To Trustee Names and Addresses of Noteholders	 	 	52	 
	 
	 	SECTION 7.2	 	Preservation of Information; Communications to Noteholders	 	 	53	 
	 
	 	SECTION 7.3	 	Reports by Issuer	 	 	53	 
	 
	 	SECTION 7.4	 	Reports by Trustee	 	 	53	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE VIII ACCOUNTS, DISBURSEMENTS AND RELEASES	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 8.1	 	Collection of Money	 	 	54	 
	 
	 	SECTION 8.2	 	Release of Trust Estate	 	 	54	 
	 
	 	SECTION 8.3	 	Opinion of Counsel	 	 	54	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE IX SUPPLEMENTAL INDENTURES	 	 	55	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.1	 	Supplemental Indentures Without Consent of Noteholders	 	 	55	 
	 
	 	SECTION 9.2	 	Supplemental Indentures with Consent of Noteholders	 	 	56	 
	 
	 	SECTION 9.3	 	Execution of Supplemental Indentures	 	 	58	 
	 
	 	SECTION 9.4	 	Effect of Supplemental Indenture	 	 	58	 
	 
	 	SECTION 9.5	 	Conformity With Trust Indenture Act	 	 	58	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 9.6	 	Reference in Notes to Supplemental Indentures	 	 	58	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE X REDEMPTION OF NOTES	 	 	58	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 10.1	 	Redemption	 	 	58	 
	 
	 	SECTION 10.2	 	Form of Redemption	 	 	59	 
	 
	 	SECTION 10.3	 	Notes Payable on Redemption Date	 	 	60	 
	 
	 	 	 	 	 	 	 	 
	ARTICLE XI MISCELLANEOUS	 	 	60	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SECTION 11.1	 	Compliance Certificates and Opinions, etc	 	 	60	 
	 
	 	SECTION 11.2	 	Form of Documents Delivered to Trustee	 	 	61	 
	 
	 	SECTION 11.3	 	Acts of Noteholders	 	 	62	 
	 
	 	SECTION 11.4	 	Notices, etc., to Trustee, Issuer and Rating Agencies	 	 	63	 
	 
	 	SECTION 11.5	 	Notices to Noteholders; Waiver	 	 	64	 
	 
	 	SECTION 11.6	 	[Reserved]	 	 	64	 
	 
	 	SECTION 11.7	 	Conflict with Trust Indenture Act	 	 	64	 
	 
	 	SECTION 11.8	 	Effect of Headings and Table of Contents	 	 	65	 
	 
	 	SECTION 11.9	 	Successors and Assigns	 	 	65	 
	 
	 	SECTION 11.10	 	Separability	 	 	65	 
	 
	 	SECTION 11.11	 	Benefits of Indenture	 	 	65	 
	 
	 	SECTION 11.12	 	Legal Holidays	 	 	65	 
	 
	 	SECTION 11.13	 	GOVERNING LAW	 	 	66	 
	 
	 	SECTION 11.14	 	Counterparts	 	 	66	 
	 
	 	SECTION 11.15	 	Recording of Indenture	 	 	66	 
	 
	 	SECTION 11.16	 	Trust Obligation	 	 	66	 
	 
	 	SECTION 11.17	 	No Petition	 	 	66	 
	 
	 	SECTION 11.18	 	Inspection	 	 	67	 
	 
	 	 	 	 	 	 	 	 
	EXHIBITS	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	EXHIBIT A-1	 	Form of Class A-1 Note	 	 	 	 
	 
	 	EXHIBIT A-2	 	Form of Class A-2 Note	 	 	 	 
	 
	 	EXHIBIT A-3	 	Form of Class A-3 Note	 	 	 	 
	 
	 	EXHIBIT A-4	 	Form of Class A-4 Note	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SCHEDULES	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	SCHEDULE A	 	Representations and Warranties of the Issuer	 	 	 	 

iii

 

               INDENTURE dated as of May 25, 2005, between AMERICREDIT AUTOMOBILE RECEIVABLES TRUST
2005-B-M, a Delaware statutory trust (the “Issuer”), and WELLS FARGO BANK, NATIONAL
ASSOCIATION, a national banking association, as trustee (the “Trustee”) and Trust
Collateral Agent (as defined below).

               Each party agrees as follows for the benefit of the other party and for the equal and ratable
benefit of the Holders of the Issuer’s Class A-1 3.301% Asset Backed Notes (the “Class A-1
Notes”), the Class A-2 3.78% Asset Backed Notes (the “Class A-2 Notes”), the Class A-3
4.05% Asset Backed Notes (the “Class A-3 Notes”) and the Class A-4 LIBOR plus 0.08% Asset
Backed Notes (the “Class A-4 Notes” and together with the Class A-1 Notes, the Class A-2
Notes and the Class A-3 Notes, the “Notes”).

               As security for the payment and performance by the Issuer of its obligations under this
Indenture and the Notes, the Issuer has agreed to assign the Collateral (as defined below) as
collateral to the Trust Collateral Agent for the benefit of the Trustee on behalf of the
Noteholders.

               MBIA Insurance Corporation (the “Security Insurer”) has issued and delivered a note
guaranty insurance policy, dated the Closing Date (with endorsements, the “Note Policy”),
pursuant to which the Security Insurer guarantees Insured Payments, as defined in the Note Policy.

               As an inducement to the Security Insurer to issue and deliver the Note Policy, the Issuer and
the Security Insurer have executed and delivered the Insurance Agreement, dated as of May 25,
2005 (as amended from time to time, the “Insurance Agreement”), among the
Security Insurer, the Issuer, the Trustee, the Trust Collateral Agent, the Backup Servicer,
AmeriCredit Financial Services, Inc. and AFS SenSub Corp.

               As an additional inducement to the Security Insurer to issue the Note Policy, and as security
for the performance by the Issuer of the Insurer Issuer Secured Obligations and as security for the
performance by the Issuer of the Trustee Issuer Secured Obligations, the Issuer has agreed to
assign the Collateral (as defined below) as collateral to the Trust Collateral Agent for the
benefit of the Issuer Secured Parties, as their respective interests may appear.

 

 

GRANTING CLAUSE

               The Issuer hereby Grants to the Trust Collateral Agent at the Closing Date, for the benefit of
the Issuer Secured Parties, all of the Issuer’s right, title and interest in and to the following
property, whether now existing or hereafter acquired or arising (a) the Initial Receivables; (b)
an assignment of the security interests in the Financed Vehicles granted by Obligors pursuant to
the Initial Receivables and any Subsequent Receivables and any other interest of the Issuer in the
Financed Vehicles; (c) any proceeds with respect to the Initial Receivables and the Subsequent
Receivables repurchased by a Dealer, pursuant to a Dealer Agreement, as a result of a breach of
representation or warranty in the related Dealer Agreement or repurchased by a Third-Party Lender,
pursuant to an Auto Loan Purchase and Sale Agreement, as a result of a breach of representation or
warranty in the related Auto Loan Purchase and Sale Agreement; (d) all rights under any Service
Contracts on the related Financed Vehicles; (e) any proceeds with respect to the Initial
Receivables and the Subsequent Receivables from claims on any physical damage, credit life or
disability insurance policies covering Financed Vehicles or Obligors and any proceeds from the
liquidation of the Receivables; (f) the Trust Accounts and all funds on deposit from time to time
in the Trust Accounts, and in all investments and proceeds thereof and all rights of the Issuer
therein (including all income thereon); (g) the Issuer’s rights and benefits, but none of its
obligations or burdens, under the Purchase Agreement and each Subsequent Purchase Agreement,
including the delivery requirements, representations and warranties and the cure and repurchase
obligations of AmeriCredit under the Purchase Agreement; (h) all items contained in the Receivable
Files and any and all other documents that AmeriCredit keeps on file in accordance with its
customary procedures relating to the Receivables, the Obligors or the Financed Vehicles, (i) the
Issuer’s rights and benefits, but none of its obligations or burdens, under the Sale and Servicing
Agreement (including all rights of the Seller under the Purchase Agreement, any Subsequent Purchase
Agreement and any Subsequent Transfer Agreement assigned to the Issuer pursuant to the Sale and
Servicing Agreement); (j) all of the Issuer’s (i) Accounts, (ii) Chattel Paper, (iii) Documents,
(iv) Instruments and (v) General Intangibles (as such terms are defined in the UCC) relative to the
property described in (a) through (i); (k) the Issuer’s rights and benefits, but none of its
obligations or burdens under the Swap Agreement (the “Swap Collateral”); and (l) all
present and future claims, demands, causes and choses of action in respect of any or all of the
foregoing and all payments on or under and all proceeds of every kind and nature whatsoever in
respect of any or all of the foregoing, including all proceeds of the conversion, voluntary or
involuntary, into cash or other liquid property, all cash proceeds, accounts, accounts receivable,
notes, drafts, acceptances, chattel paper, checks, deposit accounts, insurance proceeds,
condemnation awards, rights to payment of any and every kind and other forms of obligations and
receivables, instruments and other property which at any time constitute all or part of or are
included in the proceeds of any of the foregoing (collectively, the “Collateral”).

               The foregoing Grant is made in trust to the Trust Collateral Agent, for the benefit of the
Trustee on behalf of the Noteholders and for the benefit of the Security Insurer and the Swap
Provider. The Trust Collateral Agent hereby acknowledges such Grant, accepts the trusts under this
Indenture in accordance with the provisions of this Indenture and agrees to perform its duties
required in this Indenture to the end that the interests of such parties, recognizing the
priorities of their respective interests may be adequately and effectively protected.

2

 

ARTICLE I

Definitions and Incorporation by Reference

               SECTION 1.1 Definitions. Except as otherwise specified herein, the following terms have
the respective meanings set forth below for all purposes of this Indenture.

               “Act” has the meaning specified in Section 11.3(a).

               “Affiliate” means, with respect to any specified Person, any other Person controlling
or controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified Person means the power to direct the
management and policies of such Person, directly or indirectly, whether through the ownership of
voting securities, by contract or otherwise; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. A Person shall not be deemed to be an Affiliate of any
person solely because such other Person has the contractual right or obligation to manage such
Person unless such other Person controls such Person through equity ownership or otherwise.

               “Authorized Officer” means, with respect to the Issuer and the Servicer, any officer
or agent acting pursuant to a power of attorney of the Owner Trustee or the Servicer, as
applicable, who is authorized to act for the Owner Trustee or the Servicer, as applicable, in
matters relating to the Issuer and who is identified on the list of Authorized Officers delivered
by each of the Owner Trustee and the Servicer to the Trustee on the Closing Date (as such list may
be modified or supplemented from time to time thereafter).

               “Basic Documents” means this Indenture, the Certificate of Trust, the Trust Agreement,
as amended, the Sale and Servicing Agreement, the Spread Account Agreement, the Insurance
Agreement, the Custodian Agreement, the Swap Agreement, the Underwriting Agreement, the Lockbox
Agreement and other documents and certificates delivered in connection therewith.

               “Benefit Plan Entity” has the meaning specified in Section 2.4.

               “Book Entry Notes” means a beneficial interest in the Notes, ownership and transfers
of which shall be made through book entries by a Clearing Agency as described in Section 2.10.

               “Business Day” “ means any day other than (a) a Saturday or a Sunday, (b) a day on
which the Insurer is closed or (c) a day on which banking institutions in the states of Texas,
Delaware, Minnesota or New York are authorized or obligated by law or executive order to be closed.

               “Certificate” means a trust certificate evidencing the beneficial interest of a
Certificateholder in the Trust.

               “Certificateholder” means the Person in whose name a Certificate is registered on the
Certificate Register.

3

 

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

               “Class A-1 Interest Rate” means 3.301% per annum (computed on the basis of a 360-day
year and the actual number of days in the related Interest Period).

               “Class A-1 Notes” means the Class A-1 3.301% Asset Backed Notes, substantially in the
form of Exhibit A-1.

               “Class A-1 Prepayment Amount” means, as of the Distribution Date on or immediately
following the last day of the Funding Period, after giving effect to any transfer of Subsequent
Receivables on such date, an amount equal to the Class A-1 Noteholders’ pro rata share (based on
the respective current outstanding principal balance of each class of Notes) of the Pre-Funded
Amount as of such Distribution Date.

               “Class A-2 Interest Rate” means 3.78% per annum (computed on the basis of a 360-day
year consisting of twelve 30-day months).

               “Class A-2 Notes” means the Class A-2 3.78% Asset Backed Notes, substantially in the
form of Exhibit A-2.

               “Class A-2 Prepayment Amount” means, as of the Distribution Date on or immediately
following the last day of the Funding Period, after giving effect to any transfer of Subsequent
Receivables on such date, an amount equal to the Class A-2 Noteholders’ pro rata share (based on
the respective current outstanding principal balance of each class of Notes) of the Pre-Funded
Amount as of such Distribution Date.

               “Class A-3 Interest Rate” means 4.05% per annum (computed on the basis of a 360-day
year consisting of twelve 30-day months).

               “Class A-3 Notes” means the Class A-3 4.05% Asset Backed Notes, substantially in the
form of Exhibit A-3.

               “Class A-3 Prepayment Amount” means, as of the Distribution Date on or immediately
following the last day of the Funding Period, after giving effect to any transfer of Subsequent
Receivables on such date, an amount equal to the Class A-3 Noteholders’ pro rata share (based on
the respective current outstanding principal balance of each class of Notes) of the Pre-Funded
Amount as of such Distribution Date.

               “Class A-4 Interest Rate” means LIBOR plus 0.08% per annum (computed on the basis of a
360-day year and the actual number of days in the related Interest Period).

               “Class A-4 Notes” means the Class A-4 Floating Rate Asset Backed Notes, substantially
in the form of Exhibit A-4.

               “Class A-4 Prepayment Amount” means, as of the Distribution Date on or immediately
following the last day of the Funding Period, after giving effect to any transfer of Subsequent
Receivables on such date, an amount equal to the Class A-4 Noteholders’ pro rata

4

 

share (based on the respective current outstanding principal balance of each class of Notes) of the Pre-Funded
Amount as of such Distribution Date.

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

               “Clearing Agency Participant” means a broker, dealer, bank, other financial
institution or other Person for whom from time to time a Clearing Agency effects book-entry
transfers and pledges of securities deposited with the Clearing Agency.

               “Closing Date” means June 2, 2005.

               “Code” means the Internal Revenue Code of 1986, as amended from time to time, and
Treasury Regulations promulgated thereunder.

               “Collateral” has the meaning specified in the Granting Clause of this Indenture.

               “Controlling Party” means the Security Insurer, so long as no Insurer Default shall
have occurred and be continuing, and the Trustee, for so long as an Insurer Default shall have
occurred and be continuing.

               “Corporate Trust Office” means the principal office of the Trustee at which at any
particular time its corporate trust business shall be administered which office at date of the
execution of this Indenture is located at Sixth Street and Marquette Avenue, MAC N9311-161
Minneapolis, Minnesota 55479 (facsimile number (612) 667-3464, Attention: Corporate Trust Office,
or at such other address as the Trustee may designate from time to time by notice to the
Noteholders, the Security Insurer, the Servicer and the Issuer, or the principal corporate trust
office of any successor Trustee (the address of which the successor Trustee will notify the
Noteholders and the Issuer).

               “Default” means any occurrence that is, or with notice or the lapse of time or both
would become, an Event of Default.

               “Definitive Notes” has the meaning specified in Section 2.10.

               “Distribution Amount” means the sum of (a) Available Funds and (b) Additional Funds
Available.

               “Distribution Date” has the meaning specified in the Sale and Servicing Agreement.

               “ERISA” has the meaning specified in Section 2.4.

               “Event of Default” has the meaning specified in Section 5.1.

               “Exchange Act” means the Securities Exchange Act of 1934, as amended.

5

 

               “Executive Officer” means, with respect to any corporation, the Chief Executive
Officer, Chief Operating Officer, Chief Financial Officer, President, any Executive Vice President,
any Senior Vice President, any Vice President, the Secretary or the Treasurer of such corporation;
and with respect to any partnership, any general partner thereof.

               “Final Scheduled Distribution Date” means with respect to (i) the Class A-1 Notes, the
June 6, 2006 Distribution Date, (ii) the Class A-2 Notes, the July 7, 2008 Distribution Date, (iii)
the Class A-3 Notes, the February 8, 2010 Distribution Date and (iv) the Class A-4 Notes, the May
7, 2012 Distribution Date.

               “Grant” means mortgage, pledge, bargain, warrant, alienate, remise, release, convey,
assign, transfer, create, grant a lien upon and a security interest in and right of set-off
against, deposit, set over and confirm pursuant to this Indenture. A Grant of the Collateral or of
any other agreement or instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments in respect of the
Collateral and all other moneys payable thereunder, to give and receive notices and other
communications, to make waivers or other agreements, to exercise all rights and options, to bring
proceedings in the name of the Granting party or otherwise and generally to do and receive anything
that the Granting party is or may be entitled to do or receive thereunder or with respect thereto.

               “Holder” or “Noteholder” means the Person in whose name a Note is registered
on the Note Register.

               “Indebtedness” means, with respect to any Person at any time, (a) indebtedness or
liability of such Person for borrowed money whether or not evidenced by bonds, debentures, notes or
other instruments, or for the deferred purchase price of property or services (including trade
obligations); (b) obligations of such Person as lessee under leases which should have been or
should be, in accordance with generally accepted accounting principles, recorded as capital leases;
(c) current liabilities of such Person in respect of unfunded vested benefits under plans covered
by Title IV of ERISA; (d) obligations issued for or liabilities incurred on the account of such
Person; (e) obligations or liabilities of such Person arising under acceptance facilities; (f)
obligations of such Person under any guarantees, endorsements (other than for collection or deposit
in the ordinary course of business) and other contingent obligations to purchase, to provide funds
for payment, to supply funds to invest in any Person or otherwise to assure a creditor against
loss; (g) obligations of such Person secured by any lien on property or assets of such Person,
whether or not the obligations have been assumed by such Person; or (h) obligations of such Person
under any interest rate or currency exchange agreement.

               “Indenture” means this Indenture as amended and supplemented from time to time.

               “Independent” means, when used with respect to any specified Person, that the person
(a) is in fact independent of the Issuer, any other obligor upon the Notes, the Seller and
any Affiliate of any of the foregoing persons, (b) does not have any direct financial interest
or any material indirect financial interest in the Issuer, any such other obligor, the Seller or
any

6

 

Affiliate of any of the foregoing Persons and (c) is not connected with the Issuer, any such
other obligor, the Seller or any Affiliate of any of the foregoing Persons as an officer, employee,
promoter, underwriter, trustee, partner, director or Person performing similar functions.

               “Independent Certificate” means a certificate or opinion to be delivered to the Trust
Collateral Agent under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1, prepared by an Independent appraiser or other expert appointed by an
Issuer Order and approved by the Trust Collateral Agent in the exercise of reasonable care, and
such opinion or certificate shall state that the signer has read the definition of “Independent” in
this Indenture and that the signer is Independent within the meaning thereof.

               “Insured Payments” has the meaning specified in the Note Policy.

               “Insurer Issuer Secured Obligations” means all amounts and obligations which the
Issuer may at any time owe to or on behalf of the Security Insurer under this Indenture, the
Insurance Agreement or any other Basic Document.

               “Interest Rate” means, with respect to the (i) Class A-1 Notes, the Class A-1 Interest
Rate, (ii) Class A-2 Notes, the Class A-2 Interest Rate, (iii) Class A-3 Notes, the Class A-3
Interest Rate and (iv) Class A-4 Notes, the Class A-4 Interest Rate.

               “Issuer” means the party named as such in this Indenture until a successor replaces it
and, thereafter, means the successor and, for purposes of any provision contained herein and
required by the TIA, each other obligor on the Notes.

               “Issuer Order” and “Issuer Request” means a written order or request signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Trustee.

               “Issuer Secured Obligations” means the Insurer Issuer Secured Obligations, the Trustee
Issuer Secured Obligations and the Swap Provider Issuer Secured Obligations.

               “Issuer Secured Parties” means each of the Trustee in respect of the Trustee Issuer
Secured Obligations, the Security Insurer in respect of the Insurer Issuer Secured Obligations and
the Swap Provider in respect of the Swap Provider Issuer Secured Obligations.

               “Note” means a Class A-1 Note, a Class A-2 Note, a Class A-3 Note or a Class A-4 Note.

               “Note Owner” means, with respect to a Book-Entry Note, the person who is the owner of
such Book-Entry Note, as reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as
an indirect participant, in each case in accordance with the rules of such Clearing Agency).

               “Note Paying Agent” means the Trustee or any other Person that meets the eligibility
standards for the Trustee specified in Section 6.11 and is authorized by the Issuer to
make the payments to and distributions from the Collection Account and the Note Distribution
Account, including payment of principal of or interest on the Notes on behalf of the Issuer.

7

 

               “Note Policy” means the insurance policy issued by the Security Insurer with respect
to the Notes, including any endorsements thereto.

               “Note Register” and “Note Registrar” have the respective meanings specified in
Section 2.4.

               “Notice of Claim” has the meaning specified in the Sale and Servicing Agreement.

               “Officer’s Certificate” means a certificate signed by any Authorized Officer of the
Owner Trustee, under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1 and TIA § 314, and delivered to the Trustee. Unless otherwise
specified, any reference in this Indenture to an Officer’s Certificate shall be to an Officer’s
Certificate of any Authorized Officer of the Issuer.

               “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in this Indenture, be employees of or counsel to the Issuer and who
shall be satisfactory to the Trustee and, if addressed to the Security Insurer, satisfactory to the
Security Insurer, and which shall comply with any applicable requirements of Section 11.1, and
shall be in form and substance satisfactory to the Trustee, and if addressed to the Security
Insurer, satisfactory to the Security Insurer.

               “Outstanding” means, as of the date of determination, all Notes theretofore
authenticated and delivered under this Indenture except:

          (i) Notes theretofore canceled by the Note Registrar or delivered to the Note Registrar
for cancellation;

          (ii) Notes or portions thereof the payment for which money in the necessary amount has
been theretofore deposited with the Trustee or any Note Paying Agent in trust for the
Noteholders (provided, however, that if such Notes are to be redeemed,
notice of such redemption has been duly given pursuant to this Indenture or provision
therefor, satisfactory to the Trustee); and

          (iii) Notes in exchange for or in lieu of other Notes which have been authenticated and
delivered pursuant to this Indenture unless proof satisfactory to the Trustee is presented
that any such Notes are held by a bona fide purchaser;

provided, however, that Notes which have been paid with proceeds of the Note Policy
shall continue to remain Outstanding for purposes of this Indenture until the Security Insurer has
been paid as subrogee hereunder or reimbursed pursuant to the Insurance Agreement as evidenced by a
written notice from the Security Insurer delivered to the Trustee, and the Security Insurer shall
be deemed to be the Holder thereof to the extent of any payments thereon made by the Security
Insurer; provided, further, that in determining whether the Holders of the
requisite Outstanding Amount of the Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Basic Document, Notes owned by the Issuer, any other obligor upon the
Notes, the Seller or any Affiliate of any of the foregoing Persons shall be disregarded and deemed
not to be Outstanding, except that, in determining whether the Trustee shall be

8

 

protected in relying upon any such request, demand, authorization, direction, notice, consent or waiver, only
Notes that a Responsible Officer of the Trustee either actually knows to be so owned or has
received written notice thereof shall be so disregarded. Notes so owned that have been pledged in
good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction of the
Trustee the pledgee’s right so to act with respect to such Notes and that the pledgee is not the
Issuer, any other obligor upon the Notes, the Seller or any Affiliate of any of the foregoing
Persons.

               “Outstanding Amount” means the aggregate principal amount of all Notes, or class of
Notes, as applicable, Outstanding at the date of determination.

               “Predecessor Note” means, with respect to any particular Note, every previous Note
evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for
the purpose of this definition, any Note authenticated and delivered under Section 2.5 in lieu of a
mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the
mutilated, lost, destroyed or stolen Note.

               “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

               “Rating Agency” means each of Moody’s, Standard & Poor’s and Fitch, so long as such
Persons maintain a rating on the Notes; and if any of Moody’s, Standard & Poor’s or Fitch no longer
maintains a rating on the Notes, such other nationally recognized statistical rating organization
selected by the Seller and (so long as an Insurer Default shall not have occurred and be
continuing) acceptable to the Security Insurer.

               “Rating Agency Condition” means, with respect to any action, that each of Moody’s and
Standard & Poor’s shall have been given 10 days (or such shorter period as shall be acceptable to
each of Moody’s and Standard & Poor’s) prior notice thereof and that each of Moody’s and Standard &
Poor’s shall have notified the Seller, the Servicer, the Security Insurer, the Trustee, the Owner
Trustee and the Issuer in writing that such action will not result in a reduction or withdrawal of
the then current rating of the Notes without regard to the Note Policy.

               “Record Date” means, with respect to a Distribution Date or Redemption Date, the close
of business on the Business Day immediately preceding such Distribution Date or Redemption Date.

               “Redemption Date” means in the case of a redemption of the Notes pursuant to Section
10.1(a) or a payment to Noteholders pursuant to Section 10.1(b), the Distribution Date specified by
the Servicer or the Issuer pursuant to Section 10.1(a) or 10.1(b) as applicable.

               “Redemption Price” means (a) in the case of a redemption of the Notes pursuant to
Section 10.1(a), an amount equal to the unpaid principal amount of the then outstanding principal
amount of each class of Notes being redeemed plus accrued and unpaid interest thereon to but
excluding the Redemption Date, or (b) in the case of a payment made to Noteholders
pursuant to Section 10.1(b), the amount on deposit in the Note Distribution Account, but not
in excess of the amount specified in clause (a) above.

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               “Responsible Officer” means, with respect to the Trustee or the Trust Collateral
Agent, any officer within the Corporate Trust Office of the Trustee, including any Executive Vice
President, Senior Vice President, Vice President, Assistant Vice President, Assistant Treasurer,
Assistant Secretary, or any other officer of the Trustee or the Trust Collateral Agent 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.

               “Sale and Servicing Agreement” means the Sale and Servicing Agreement dated as of May
25, 2005, among the Issuer, the Seller, the Servicer, the Trustee as Backup Servicer and Trust
Collateral Agent, as the same may be amended or supplemented from time to time.

               “State” means any one of the 50 states of the United States of America or the District
of Columbia.

               “Swap Agreement” means the ISDA Master Agreement dated June 2, 2005 between the Issuer
and the Swap Provider, including the Schedule thereto, the Credit Support Annex thereto, the
Confirmation relating to the Class A-4 Notes, and together with any replacement swap agreement
thereafter approved by the Security Insurer; provided, that no additional swap agreement
shall be a “Swap Agreement” under the Basic Documents for so long as the Swap Agreement is
outstanding without the prior, written consent of the applicable Swap Provider unless the Swap
Agreement has terminated as a result of an Event of Default or Termination Event relating to the
Swap Provider.

               “Swap Policy” means the interest swap insurance policy issued by the Security Insurer
to the Swap Provider with respect to the Swap Agreement.

               “Swap Provider” means Lehman Brothers Special Financing Inc., with respect to the
Class A-4 Notes, together with any replacement Swap Provider thereafter approved by the Security
Insurer.

               “Swap Provider Issuer Secured Obligations” means all amounts and obligations which the
Issuer may at any time owe to or on behalf of the Swap Provider under this Indenture, the Sale and
Servicing Agreement, the Swap Agreement or any other Basic Document.

               “Termination Date” means the latest of (i) the expiration of the Note Policy and the
return of the Note Policy to the Security Insurer for cancellation, (ii) the date on which the
Security Insurer shall have received payment and performance of all Insurer Issuer Secured
Obligations and (iii) the date on which the Trustee shall have received payment and performance of
all Trustee Issuer Secured Obligations.

               “Trust Collateral Agent” means, initially, Wells Fargo Bank, National Association, in
its capacity as collateral agent on behalf of the Issuer Secured Parties, including its
successors-in-interest, until and unless a successor Person shall have become the Trust
Collateral Agent pursuant to Section 6.17 hereof, and thereafter “Trust Collateral Agent”
shall mean such successor Person.

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               “Trust Estate” means all money, instruments, rights and other property that are
subject or intended to be subject to the lien and security interest of this Indenture for the
benefit of the Noteholders (including all property and interests Granted to the Trust Collateral
Agent), including all proceeds thereof.

               “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939, as
amended and as in force on the date hereof, unless otherwise specifically provided.

               “Trustee” means Wells Fargo Bank, National Association, a national banking
association, not in its individual capacity but as trustee under this Indenture, or any successor
trustee under this Indenture.

               “Trustee Issuer Secured Obligations” means all amounts and obligations which the
Issuer may at any time owe to or on behalf of the Trustee for the benefit of the Noteholders under
this Indenture, the Notes or any Basic Document.

               “UCC” means, unless the context otherwise requires, the Uniform Commercial Code, as in
effect in the relevant jurisdiction, as amended from time to time.

               Capitalized terms used herein and not otherwise defined herein shall have the meanings
assigned to them in the Sale and Servicing Agreement or the Trust Agreement.

               SECTION 1.2 Incorporation by Reference of Trust Indenture Act. Whenever this Indenture
refers to a provision of the TIA, the provision is incorporated by reference in and made a part of
this Indenture. The following TIA terms used in this Indenture have the following meanings:

               “Commission” means the Securities and Exchange Commission.

               “indenture securities” means the Notes.

               “indenture security holder” means a Noteholder.

               “indenture to be qualified” means this Indenture.

               “indenture trustee” or “institutional trustee” means the Trustee.

               “obligor” on the indenture securities means the Issuer.

               All other TIA terms used in this Indenture that are defined by the TIA, defined by TIA
reference to another statute or defined by Commission rule have the meaning assigned to them by
such definitions.

               SECTION 1.3 Rules of Construction. Unless the context otherwise requires:

          (i) a term has the meaning assigned to it;

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              (ii) an accounting term not otherwise defined has the meaning assigned to it in
accordance with generally accepted accounting principles as in effect from time to
time;

          (iii) “or” is not exclusive;

          (iv) “including” means including without limitation; and

          (v) words in the singular include the plural and words in the plural include
the singular.

ARTICLE II

The Notes

               SECTION 2.1 Form. The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the
Class A-4 Notes, in each case together with the Trustee’s certificate of authentication, shall be
in substantially the form set forth in Exhibits A-1, A-2, A-3 and A-4, respectively, with such
appropriate insertions, omissions, substitutions and other variations as are required or permitted
by this Indenture and may have such letters, numbers or other marks of identification and such
legends or endorsements placed thereon as may, consistently herewith, be determined by the officers
executing such Notes, as evidenced by their execution of the Notes. Any portion of the text of any
Note may be set forth on the reverse thereof, with an appropriate reference thereto on the face of
the Note.

               The Definitive Notes shall be typewritten, printed, lithographed or engraved or produced by
any combination of these methods (with or without steel engraved borders), all as determined by the
officers executing such Notes, as evidenced by their execution of such Notes.

               Each Note shall be dated the date of its authentication. The terms of the Notes set forth in
Exhibits A-1, A-2, A-3 and A-4 are part of the terms of this Indenture.

               SECTION 2.2 Execution, Authentication and Delivery. The Notes shall be executed on behalf
of the Issuer by any of its Authorized Officers. The signature of any such Authorized Officer on
the Notes may be manual or facsimile.

               Notes bearing the manual or facsimile signature of individuals who were at any time Authorized
Officers of the Issuer shall bind the Issuer, notwithstanding that such individuals or any of them
have ceased to hold such offices prior to the authentication and delivery of such Notes or did not
hold such offices at the date of such Notes.

               The Trustee shall, upon receipt of the Note Policy and Issuer Order, authenticate and deliver
Class A-1 Notes for original issue in an aggregate principal amount of $239,000,000, Class A-2
Notes for original issue in the aggregate principal amount of $375,000,000, Class A-3 Notes for
original issue in an aggregate principal amount of $430,000,000 and Class A-4 Notes for original
issue in the aggregate principal amount of $306,000,000. The Class A-1 Notes, Class A-2 Notes,
Class A-3 Notes and Class A-4 Notes outstanding at any time may not exceed such amounts except as
provided in Section 2.5.

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               The Notes shall be issuable as registered Notes in the minimum denomination of $1,000 and in
integral multiples thereof (except for one Note of each class which may be issued in a denomination
other than an integral multiple of $1,000).

               No Note shall be entitled to any benefit under this Indenture or be valid or obligatory for
any purpose, unless there appears on such Note a certificate of authentication substantially in the
form provided for herein executed by the Trustee by the manual signature of one of its authorized
signatories, and such certificate upon any Note shall be conclusive evidence, and the only
evidence, that such Note has been duly authenticated and delivered hereunder.

               SECTION 2.3 Temporary Notes. Pending the preparation of Definitive Notes, the Issuer may
execute, and upon receipt of an Issuer Order the Trustee shall authenticate and deliver, temporary
Notes which are printed, lithographed, typewritten, mimeographed or otherwise produced, of the
tenor of the Definitive Notes in lieu of which they are issued and with such variations not
inconsistent with the terms of this Indenture as the officers executing such Notes may determine,
as evidenced by their execution of such Notes.

               If temporary Notes are issued, the Issuer will cause Definitive Notes to be prepared without
unreasonable delay. After the preparation of Definitive Notes, the temporary Notes shall be
exchangeable for Definitive Notes upon surrender of the temporary Notes at the office or agency of
the Issuer to be maintained as provided in Section 3.2, without charge to the Noteholder. Upon
surrender for cancellation of any one or more temporary Notes, the Issuer shall execute and the
Trustee shall authenticate and deliver in exchange therefor a like principal amount of Definitive
Notes of authorized denominations. Until so exchanged, the temporary Notes shall in all respects
be entitled to the same benefits under this Indenture as Definitive Notes.

               SECTION 2.4 Registration; Registration of Transfer and Exchange. The Issuer shall cause to
be kept a register (the “Note Register”) in which, subject to such reasonable regulations
as it may prescribe, the Issuer shall provide for the registration of Notes and the registration of
transfers of Notes. The Trustee shall be “Note Registrar” for the purpose of registering
Notes and transfers of Notes as herein provided. Upon any resignation of any Note Registrar, the
Issuer shall promptly appoint a successor or, if it elects not to make such an appointment, assume
the duties of Note Registrar.

               If a Person other than the Trustee is appointed by the Issuer as Note Registrar, the Issuer
will give the Trustee prompt written notice of the appointment of such Note Registrar and of the
location, and any change in the location, of the Note Register, and the Trustee shall have the
right to inspect the Note Register at all reasonable times and to obtain copies thereof, and the
Trustee shall have the right to conclusively rely upon a certificate executed on behalf of the Note
Registrar by an Executive Officer thereof as to the names and addresses of the Noteholders of the
Notes and the principal amounts and number of such Notes.

               Subject to Sections 2.10 and 2.12 hereof, upon surrender for registration of transfer of any
Note at the office or agency of the Issuer to be maintained as provided in Section 3.2, if the
requirements of Section 8-401(1) of the UCC are met the Issuer shall execute and upon

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its request the Trustee shall authenticate and the Noteholder shall obtain from the Trustee, in the name of the
designated transferee or transferees, one or more new Notes, in any authorized denominations, of
the same class and a like aggregate principal amount.

               At the option of the Noteholder, Notes may be exchanged for other Notes in any authorized
denominations, of the same class and a like aggregate principal amount, upon surrender of the Notes
to be exchanged at such office or agency. Whenever any Notes are so surrendered for exchange,
subject to Sections 2.10 and 2.12 hereof, if the requirements of Section 8-401(1) of the UCC are
met the Issuer shall execute and upon its request the Trustee shall authenticate and the Noteholder
shall obtain from the Trustee, the Notes which the Noteholder making the exchange is entitled to
receive.

               All Notes issued upon any registration of transfer or exchange of Notes shall be the valid
obligations of the Issuer, evidencing the same debt, and entitled to the same benefits under this
Indenture, as the Notes surrendered upon such registration of transfer or exchange.

               Every Note presented or surrendered for registration of transfer or exchange shall be (i) duly
endorsed by, or be accompanied by a written instrument of transfer in the form attached to Exhibits
A-1, A-2, A-3 and A-4 duly executed by, the Holder thereof or such Holder’s attorney duly
authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Note Registrar which requirements include membership or
participation in Securities Transfer Agents Medallion Program (“STAMP”) or such other
“signature guarantee program” as may be determined by the Note Registrar in addition to, or in
substitution for, STAMP, all in accordance with the Exchange Act, and (ii) accompanied by such
other documents as the Trustee may require.

               Notwithstanding the foregoing, in the case of any sale or other transfer of a Definitive Note,
the transferor of such Definitive Note shall be required to represent and warrant in writing that
the prospective transferee either (a) is not (i) an employee benefit plan (as defined in section
3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”)), which
is subject to the provisions of Title I of ERISA, (ii) a plan (as defined in section 4975(e)(1) of
the Code), which is subject to Section 4975 of the Code, or (iii) an entity whose underlying assets
are deemed to be assets of a plan described in (i) or (ii) above by reason of such plan’s
investment in the entity (any such entity described in clauses (i) through (iii), a “Benefit
Plan Entity”) or (b) is a Benefit Plan Entity and the acquisition and holding of the Definitive
Note by such prospective transferee is covered by a Department of Labor Prohibited
Transaction Class Exemption. Each transferee of a Book Entry Note that is a Benefit Plan
Entity shall be deemed to represent that its acquisition and holding of the Book Entry Note is
covered by a Department of Labor Prohibited Transaction Class Exemption.

               No service charge shall be made to a Noteholder for any registration of transfer or exchange
of Notes, but the Note Registrar may require payment of a sum sufficient to cover any tax or other
governmental charge that may be imposed in connection with any registration of transfer or exchange
of Notes, other than exchanges pursuant to Section 2.3 or 9.6 not involving any transfer.

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               The preceding provisions of this section notwithstanding, the Issuer shall not be required to
make and the Note Registrar shall not register transfers or exchanges of Notes selected for
redemption or of any Note for a period of 15 days preceding the due date for any payment with
respect to the Note.

               SECTION 2.5 Mutilated, Destroyed, Lost or Stolen Notes. If (i) any mutilated Note is
surrendered to the Trustee, or the Trustee receives evidence to its satisfaction of the
destruction, loss or theft of any Note, and (ii) there is delivered to the Trustee and the Security
Insurer (unless an Insurer Default shall have occurred and be continuing) such security or
indemnity as may be required by it to hold the Issuer, the Trustee and the Security Insurer
harmless, then, in the absence of notice to the Issuer, the Note Registrar or the Trustee that such
Note has been acquired by a bona fide purchaser, and provided that the requirements of Section
8-405 of the UCC are met, the Issuer shall execute and upon its request the Trustee shall
authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or
stolen Note, a replacement Note; provided, however, that if any such destroyed,
lost or stolen Note, but not a mutilated Note, shall have become or within seven days shall be due
and payable, or shall have been called for redemption, instead of issuing a replacement Note, the
Issuer may direct the Trustee, in writing, to pay such destroyed, lost or stolen Note when so due
or payable or upon the Redemption Date, without surrender thereof. If, after the delivery of such
replacement Note or payment of a destroyed, lost or stolen Note pursuant to the proviso to the
preceding sentence, a bona fide purchaser of the original Note in lieu of which such replacement
Note was issued presents for payment such original Note, the Issuer, the Trustee and the Security
Insurer shall be entitled to recover such replacement Note (or such payment) from the Person to
whom it was delivered or any Person taking such replacement Note from such Person to whom such
replacement Note was delivered or any assignee of such Person, except a bona fide purchaser, and
shall be entitled to recover upon the security or indemnity provided therefor to the extent of any
loss, damage, cost or expense incurred by the Issuer or the Trustee in connection therewith.

               Upon the issuance of any replacement Note under this Section, the Issuer may require the
payment by the Holder of such Note of a sum sufficient to cover any tax or other governmental
charge that may be imposed in relation thereto and any other reasonable expenses (including the
fees and expenses of the Trustee) connected therewith.

               Every replacement Note issued pursuant to this Section in replacement of any mutilated,
destroyed, lost or stolen Note shall constitute an original additional contractual
obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Note shall
be at any time enforceable by anyone, and shall be entitled to all the benefits of this Indenture
equally and proportionately with any and all other Notes duly issued hereunder.

               The provisions of this Section are exclusive and shall preclude (to the extent lawful) all
other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost
or stolen Notes.

               SECTION 2.6 Persons Deemed Owner. Prior to due presentment for registration of transfer of
any Note, the Issuer, the Trustee and any agent of the Issuer or the Trustee, or the Security
Insurer may treat the Person in whose name any Note is registered (as of

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the Record Date) as the owner of such Note for the purpose of receiving payments of principal of and interest, if any on
such Note and for all other purposes whatsoever, whether or not such Note be overdue, and none of
the Issuer, the Security Insurer, the Trustee nor any agent of the Issuer or the Trustee shall be
affected by notice to the contrary.

               SECTION 2.7 Payment of Principal and Interest; Defaulted Interest.

               (a) The Notes shall accrue interest as provided in the forms of the Class A-1 Note, the Class
A-2 Note, the Class A-3 Note and the Class A-4 Note set forth in Exhibits A-1, A-2, A-3 and A-4,
respectively, and such interest shall be due and payable on each Distribution Date, as specified
therein. Any installment of interest or principal, if any, payable on any Note which is punctually
paid or duly provided for by the Issuer on the applicable Distribution Date shall be paid to the
Person in whose name such Note (or one or more Predecessor Notes) is registered on the Record Date,
by check mailed first-class, postage prepaid, to such Person’s address as it appears on the Note
Register on such Record Date, except that, unless Definitive Notes have been issued pursuant to
Section 2.12, with respect to Notes registered on the Record Date in the name of the nominee of the
Clearing Agency (initially, such nominee to be Cede & Co.), payment will be made by wire transfer
in immediately available funds to the account designated by such nominee and except for the final
installment of principal payable with respect to such Note on a Distribution Date or on the Final
Scheduled Distribution Date (and except for the Redemption Price for any Note called for redemption
pursuant to Section 10.1(a)) which shall be payable as provided below. The funds represented by
any such checks returned undelivered shall be held in accordance with Section 3.3.

               (b) The principal of each Note shall be payable in installments on each Distribution Date, as
applicable, as provided in the forms of the Class A-1 Note, the Class A-2 Note, the Class A-3 Note
and the Class A-4 Note set forth in Exhibits A-1, A-2, A-3 and A-4, respectively. Notwithstanding
the foregoing, the entire unpaid principal amount of the Notes shall be due and payable, if not
previously paid, on the date on which an Event of Default shall have occurred and be continuing, if
the Trustee or the Noteholders representing not less than a majority of the Outstanding Amount of
the Notes have declared the Notes to be immediately due and payable in the manner provided in
Section 5.2. All principal payments on each class of Notes shall be made pro rata to the
Noteholders of such class entitled thereto. Upon written notice from the Issuer, the Trustee shall
notify the Person in whose name a Note is registered at the close of business on the Record Date
preceding the Distribution Date on which the Issuer
expects that the final installment of principal of and interest on such Note will be paid.
Such notice shall be mailed or transmitted by facsimile prior to such final Distribution Date and
shall specify that such final installment will be payable only upon presentation and surrender of
such Note and shall specify the place where such Note may be presented and surrendered for payment
of such installment. Notices in connection with redemptions of Notes shall be mailed to
Noteholders as provided in Section 10.2.

               (c) If the Issuer defaults in a payment of interest on the Notes, and such default is waived
by the Controlling Party, the Issuer shall pay defaulted interest (plus interest on such defaulted
interest to the extent lawful) at the applicable Interest Rate in any lawful manner. The Issuer
may pay such defaulted interest to the Persons who are Noteholders on the immediately following
Distribution Date, and, if such amount is not paid on such following

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Distribution Date, then on a subsequent special record date, which date shall be at least five Business Days prior to the
payment date. The Issuer shall fix or cause to be fixed any such special record date and payment
date, and, at least 15 days before any such special record date, the Issuer shall mail to each
Noteholder and the Trustee a notice that states the special record date, the payment date and the
amount of defaulted interest to be paid.

               (d) Promptly following the date on which all principal of and interest on the Notes has been
paid in full and the Notes have been surrendered to the Trustee, the Trustee shall, if the Security
Insurer has paid any amount in respect of the Notes under the Note Policy or otherwise which has
not been reimbursed to it, deliver such surrendered Notes to the Security Insurer.

               SECTION 2.8 Cancellation. Subject to Section 2.7(d), all Notes surrendered for payment,
registration of transfer, exchange, or redemption shall, if surrendered to any Person other than
the Trustee, be delivered to the Trustee and shall be promptly canceled by the Trustee. Subject to
Section 2.7(d), the Issuer may at any time deliver to the Trustee for cancellation any Notes
previously authenticated and delivered hereunder which the Issuer may have acquired in any manner
whatsoever, and all Notes so delivered shall be promptly canceled by the Trustee. No Notes shall
be authenticated in lieu of or in exchange for any Notes canceled as provided in this Section,
except as expressly permitted by this Indenture. Subject to Section 2.7(d), all canceled Notes may
be held or disposed of by the Trustee in accordance with its standard retention or disposal policy
as in effect at the time unless the Issuer shall timely direct by an Issuer Order that they be
destroyed or returned to it; provided that such Issuer Order is timely and the Notes have not been
previously disposed of by the Trustee.

               SECTION 2.9 Release of Collateral. The Trust Collateral Agent shall, on or after the
Termination Date, release any remaining portion of the Trust Estate from the lien created by this
Indenture and deposit in the Collection Account any funds then on deposit in any other Trust
Account. The Trust Collateral Agent shall release property from the lien created by this Indenture
pursuant to this Section 2.9 only upon receipt of an Issuer Request accompanied by an Officer’s
Certificate, an Opinion of Counsel and (if required by the TIA) Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1)
meeting the applicable requirements of Section 11.1.

               SECTION 2.10 Book-Entry Notes. The Notes, upon original issuance, will be issued in the
form of typewritten Notes representing the Book-Entry Notes, to be delivered to The Depository
Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuer. Such Notes shall
initially be registered on the Note Register in the name of Cede & Co., the nominee of the initial
Clearing Agency, and no Note Owner will receive a Definitive Note representing such Note Owner’s
interest in such Note, except as provided in Section 2.12. Unless and until definitive, fully
registered Notes (the “Definitive Notes”) have been issued to Note Owners pursuant to
Section 2.12:

          (i) the provisions of this Section shall be in full force and effect;

          (ii) the Note Registrar and the Trustee shall be entitled to deal with the Clearing
Agency for all purposes of this Indenture (including the payment of principal of

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and interest on the Notes and the giving of instructions or directions hereunder) as the sole
Holder of the Notes, and shall have no obligation to the Note Owners;

          (iii) to the extent that the provisions of this Section conflict with any other
provisions of this Indenture, the provisions of this Section shall control;

          (iv) the rights of Note Owners shall be exercised only through the Clearing Agency and
shall be limited to those established by law and agreements between such Note Owners and the
Clearing Agency and/or the Clearing Agency Participants. Unless and until Definitive Notes
are issued pursuant to Section 2.12, the initial Clearing Agency will make book-entry
transfers among the Clearing Agency Participants and receive and transmit payments of
principal of and interest on the Notes to such Clearing Agency Participants;

          (v) whenever this Indenture requires or permits actions to be taken based upon
instructions or directions of Noteholders evidencing a specified percentage of the
Outstanding Amount of the Notes, the Clearing Agency shall be deemed to represent such
percentage only to the extent that it has received instructions to such effect from Note
Owners and/or Clearing Agency Participants owning or representing, respectively, such
required percentage of the beneficial interest in the Notes and has delivered such
instructions to the Trustee; and

          (vi) Note Owners may receive copies of any reports sent to Noteholders pursuant to this
Indenture, upon written request, together with a certification that they are Note Owners and
payment of reproduction and postage expenses associated with the distribution of such
reports, from the Trustee at the Corporate Trust Office.

               SECTION 2.11 Notices to Clearing Agency. Whenever a notice or other communication to the
Noteholders is required under this Indenture, unless and until Definitive Notes shall have been
issued to Note Owners pursuant to Section 2.12, the Trustee shall give all such notices and communications specified herein to be given to
the Noteholders to the Clearing Agency, and shall have no obligation to the Note Owners.

               SECTION 2.12 Definitive Notes. If (i) the Servicer advises the Trustee in writing
that the Clearing Agency is no longer willing or able to properly discharge its responsibilities
with respect to the Notes, and the Servicer is unable to locate a qualified successor or (ii) after
the occurrence of an Event of Default, Note Owners representing beneficial interests aggregating at
least a majority of the Outstanding Amount of the Notes advise the Trustee through the Clearing
Agency in writing that the continuation of a book entry system through the Clearing Agency is no
longer in the best interests of the Note Owners, then the Clearing Agency shall notify all Note
Owners and the Trustee of the occurrence of any such event and of the availability of Definitive
Notes to Note Owners requesting the same. Upon surrender to the Trustee of the typewritten Note or
Notes representing the Book-Entry Notes by the Clearing Agency, accompanied by registration
instructions, the Issuer shall execute and the Trustee shall authenticate the Definitive Notes in
accordance with the instructions of the Clearing Agency. None of the Issuer, the Note Registrar or
the Trustee shall be liable for any delay in delivery of such instructions and may conclusively
rely on, and shall be fully protected

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in relying on, such instructions. Upon the issuance of
Definitive Notes, the Trustee shall recognize the Holders of the Definitive Notes as Noteholders.

ARTICLE III

Covenants

               SECTION 3.1 Payment of Principal and Interest. The Issuer will duly and punctually
pay the principal of and interest on the Notes in accordance with the terms of the Notes and this
Indenture. Without limiting the foregoing, the Issuer will cause to be distributed all amounts on
deposit in the Note Distribution Account on a Distribution Date deposited therein pursuant to the
Sale and Servicing Agreement (i) for the benefit of the Class A-l Notes, to Class A-1 Noteholders,
(ii) for the benefit of the Class A-2 Notes, to Class A-2 Noteholders, (iii) for the benefit of the
Class A-3 Notes, to Class A-3 Noteholders and (iv) for the benefit of the Class A-4 Notes, to Class
A-4 Noteholders. Amounts properly withheld under the Code by any Person from a payment to any
Noteholder of interest and/or principal shall be considered as having been paid by the Issuer to
such Noteholder for all purposes of this Indenture.

               SECTION 3.2 Maintenance of Office or Agency. The Issuer will maintain in New York,
New York, an office or agency where Notes may be surrendered for registration of transfer or
exchange, and where notices and demands to or upon the Issuer in respect of the Notes and this
Indenture may be served. The Issuer hereby initially appoints the Trustee to serve as its agent
for the foregoing purposes. The Issuer will give prompt written notice to the Trustee of the
location, and of any change in the location, of any such office or agency. If at any time the
Issuer shall fail to maintain any such office or agency or shall fail to furnish the Trustee with
the address thereof, such surrenders, notices and demands may be made or served at the Corporate Trust Office, and the Issuer hereby
appoints the Trustee as its agent to receive all such surrenders, notices and demands.

               SECTION 3.3 Money for Payments to be Held in Trust. On or before each Distribution
Date and Redemption Date, the Issuer shall deposit or cause to be deposited in the Note
Distribution Account from the Collection Account an aggregate sum sufficient to pay the amounts
then becoming due under the Notes, such sum to be held in trust for the benefit of the Persons
entitled thereto and (unless the Note Paying Agent is the Trustee) shall promptly notify the
Trustee of its action or failure so to act.

               The Issuer will cause each Note Paying Agent other than the Trustee to execute and deliver to
the Trustee and the Security Insurer an instrument in which such Note Paying Agent shall agree with
the Trustee (and if the Trustee acts as Note Paying Agent, it hereby so agrees), subject to the
provisions of this Section, that such Note Paying Agent will:

          (i) hold all sums held by it for the payment of amounts due with respect to the Notes
in trust for the benefit of the Persons entitled thereto until such sums shall be paid to
such Persons or otherwise disposed of as herein provided and pay such sums to such Persons
as herein provided;

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          (ii) give the Trustee notice of any default by the Issuer (or any other obligor upon
the Notes) of which it has actual knowledge in the making of any payment required to be made
with respect to the Notes;

          (iii) at any time during the continuance of any such default, upon the written request
of the Trustee, forthwith pay to the Trustee all sums so held in trust by such Paying Agent;

          (iv) immediately resign as a Note Paying Agent and forthwith pay to the Trustee all
sums held by it in trust for the payment of Notes if at any time it ceases to meet the
standards required to be met by a Note Paying Agent at the time of its appointment; and

          (v) comply with all requirements of the Code with respect to the withholding from any
payments made by it on any Notes of any applicable withholding taxes imposed thereon and
with respect to any applicable reporting requirements in connection therewith.

               The Issuer may at any time, for the purpose of obtaining the satisfaction and discharge of
this Indenture or for any other purpose, by Issuer Order direct any Note Paying Agent to pay to the
Trustee all sums held in trust by such Note Paying Agent, such sums to be held by the Trustee upon
the same trusts as those upon which the sums were held by such Note Paying Agent; and upon such a
payment by any Note Paying Agent to the Trustee, such Note Paying Agent shall be released from all
further liability with respect to such money.

               Subject to applicable laws with respect to the escheat of funds, any money held by the Trustee
or any Note Paying Agent in trust for the payment of any amount due with respect to
any Note and remaining unclaimed for two years after such amount has become due and payable
shall be discharged from such trust and be paid to the Issuer on Issuer Request with the consent of
the Security Insurer (unless an Insurer Default shall have occurred and be continuing) and shall be
deposited by the Trustee in the Collection Account; and the Holder of such Note shall thereafter,
as an unsecured general creditor, look only to the Issuer for payment thereof (but only to the
extent of the amounts so paid to the Issuer), and all liability of the Trustee or such Note Paying
Agent with respect to such trust money shall thereupon cease; provided, however,
that if such money or any portion thereof had been previously deposited by the Security Insurer or
the Trust Collateral Agent with the Trustee for the payment of principal or interest on the Notes,
to the extent any amounts are owing to the Security Insurer, such amounts shall be paid promptly to
the Security Insurer upon the Trustee’s receipt of a written request by the Security Insurer to
such effect; and provided, further, that the Trustee or such Note Paying Agent,
before being required to make any such repayment, shall at the expense of the Issuer cause to be
published once, in a newspaper published in the English language, customarily published on each
Business Day and of general circulation in New York, New York, notice that such money remains
unclaimed and that, after a date specified therein, which shall not be less than 30 days from the
date of such publication, any unclaimed balance of such money then remaining will be repaid to the
Issuer. The Trustee shall also adopt and employ, at the expense of the Issuer, any other
reasonable means of notification of such repayment (including, but not limited to, mailing notice
of such repayment to Holders whose Notes have been called but have not been surrendered for

20

 

redemption or whose right to or interest in moneys due and payable but not claimed is determinable
from the records of the Trustee or of any Note Paying Agent, at the last address of record for each
such Holder).

               SECTION 3.4 Existence. Except as otherwise permitted by the provisions of Section
3.10, the Issuer will keep in full effect its existence, rights and franchises as a statutory trust
under the laws of the State of Delaware (unless it becomes, or any successor Issuer hereunder is or
becomes, organized under the laws of any other state or of the United States of America, in which
case the Issuer will keep in full effect its existence, rights and franchises under the laws of
such other jurisdiction) 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 Indenture, the Notes, the Collateral and each other instrument or agreement
included in the Trust Estate.

               SECTION 3.5 Protection of Trust Estate. The Issuer intends the security interest
Granted pursuant to this Indenture in favor of the Issuer Secured Parties to be prior to all other
liens in respect of the Trust Estate, and the Issuer shall take all actions necessary to obtain and
maintain, in favor of the Trust Collateral Agent, for the benefit of the Issuer Secured Parties, a
first lien on and a first priority, perfected security interest in the Trust Estate. The Issuer
will from time to time prepare (or shall cause to be prepared), execute and deliver all such
supplements and amendments hereto and all such financing statements, continuation statements,
instruments of further assurance and other instruments, and will take such other action necessary
or advisable to:

          (i) Grant more effectively all or any portion of the Trust Estate;

          (ii) maintain or preserve the lien and security interest (and the priority thereof) in
favor of the Trust Collateral Agent for the benefit of the Issuer Secured Parties created by
this Indenture or carry out more effectively the purposes hereof;

          (iii) perfect, publish notice of or protect the validity of any Grant made or to be
made by this Indenture;

          (iv) enforce any of the Collateral;

          (v) preserve and defend title to the Trust Estate and the rights of the Trust
Collateral Agent in such Trust Estate against the claims of all persons and parties; and

          (vi) pay all taxes or assessments levied or assessed upon the Trust Estate when due.

The Issuer hereby designates the Trust Collateral Agent its agent and attorney-in-fact to execute
any financing statement, continuation statement or other instrument required by the Trust
Collateral Agent pursuant to this Section.

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               SECTION 3.6 Opinions as to Trust Estate.

               (a) On the Closing Date, the Issuer shall furnish to the Trustee, the Trust Collateral Agent
and the Security Insurer an Opinion of Counsel either stating that, in the opinion of such counsel,
such action has been taken with respect to the recording and filing of this Indenture, any
indentures supplemental hereto, and any other requisite documents, and with respect to the
execution and filing of any financing statements and continuation statements, as are necessary to
perfect and make effective the first priority lien and security interest in favor of the Trust
Collateral Agent, for the benefit of the Issuer Secured Parties, created by this Indenture and
reciting the details of such action, or stating that, in the opinion of such counsel, no such
action is necessary to make such lien and security interest effective.

               (b) Within 120 days after the beginning of each calendar year, beginning with the first
calendar year beginning more than six months after the Closing Date, the Issuer shall furnish to
the Trustee, Trust Collateral Agent and the Security Insurer an Opinion of Counsel either stating
that, in the opinion of such counsel, such action has been taken with respect to the recording,
filing, re-recording and refiling of this Indenture, any indentures supplemental hereto and any
other requisite documents and with respect to the execution and filing of any financing statements
and continuation statements as are necessary to maintain the lien and security interest created by
this Indenture and reciting the details of such action or stating that in the opinion of such
counsel no such action is necessary to maintain such lien and security interest. Such Opinion of
Counsel shall also describe the recording, filing, re-recording and refiling of this Indenture, any
indentures supplemental hereto and any other requisite documents and the execution and filing of
any financing statements and continuation statements that will, in the opinion of such counsel, be
required to maintain the lien and security interest of this Indenture until January 31 in the
following calendar year.

               SECTION 3.7 Performance of Obligations; Servicing of Receivables.

               (a) The Issuer will not take any action and will use its best efforts not to permit any action
to be taken by others that would release any Person from any of such Person’s material covenants or
obligations under any instrument or agreement included in the Trust Estate or that would result in
the amendment, hypothecation, subordination, termination or discharge of, or impair the validity or
effectiveness of, any such instrument or agreement, except as ordered by any bankruptcy or other
court or as expressly provided in this Indenture, the Basic Documents or such other instrument or
agreement.

               (b) The Issuer may contract with other Persons acceptable to the Security Insurer (so long as
no Insurer Default shall have occurred and be continuing) to assist it in performing its duties
under this Indenture, and any performance of such duties by a Person identified to the Trustee and
the Security Insurer in an Officer’s Certificate of the Issuer shall be deemed to be action taken
by the Issuer. Initially, the Issuer has contracted with the Servicer to assist the Issuer in
performing its duties under this Indenture.

               (c) The Issuer will punctually perform and observe all of its obligations and agreements
contained in this Indenture, the Basic Documents and in the instruments and agreements included in
the Trust Estate, including, but not limited to, preparing (or causing to

22

 

prepared) and filing (or causing to be filed) all UCC financing statements and continuation statements required to be filed
by the terms of this Indenture and the Sale and Servicing Agreement in accordance with and within
the time periods provided for herein and therein. Except as otherwise expressly provided therein,
the Issuer shall not waive, amend, modify, supplement or terminate any Basic Document or any
provision thereof without the consent of the Trustee, the Security Insurer and the Holders of at
least a majority of the Outstanding Amount of the Notes.

               (d) If a responsible officer of the Owner Trustee shall have actual knowledge of the
occurrence of a Servicer Termination Event under the Sale and Servicing Agreement, the Issuer shall
promptly notify the Trustee, the Security Insurer and the Rating Agencies thereof in accordance
with Section 11.4, and shall specify in such notice the action, if any, the Issuer is taking in
respect of such default. If a Servicer Termination Event shall arise from the failure of the
Servicer to perform any of its duties or obligations under the Sale and Servicing Agreement with
respect to the Receivables, the Issuer shall take all reasonable steps available to it to remedy
such failure.

               (e) The Issuer agrees that it will not waive timely performance or observance by the Servicer
or the Seller of their respective duties under the Basic Documents (x) without the prior consent of
the Security Insurer (unless an Insurer Default shall have occurred and be controlling) or (y) if
the effect thereof would adversely affect the Holders of the Notes.

               SECTION 3.8 Negative Covenants. So long as any Notes are Outstanding, the Issuer
shall not:

          (i) except as expressly permitted by this Indenture or the Basic Documents, sell,
transfer, exchange or otherwise dispose of any of the properties or assets of the
Issuer, including those included in the Trust Estate, unless directed to do so by the
Controlling Party;

          (ii) claim any credit on, or make any deduction from the principal or interest payable
in respect of, the Notes (other than amounts properly withheld from such payments under the
Code) or assert any claim against any present or former Noteholder by reason of the payment
of the taxes levied or assessed upon any part of the Trust Estate; or

          (iii) (A) permit the validity or effectiveness of this Indenture to be impaired, or
permit the lien in favor of the Trust Collateral Agent created by this Indenture to be
amended, hypothecated, subordinated, terminated or discharged, or permit any Person to be
released from any covenants or obligations with respect to the Notes under this Indenture
except as may be expressly permitted hereby, (B) permit any lien, charge, excise, claim,
security interest, mortgage or other encumbrance (other than the lien of this Indenture) to
be created on or extend to or otherwise arise upon or burden the Trust Estate or any part
thereof or any interest therein or the proceeds thereof (other than tax liens, mechanics’
liens and other liens that arise by operation of law, in each case on a Financed Vehicle and
arising solely as a result of an action or omission of the related Obligor), (C) permit the
lien of this Indenture not to constitute a valid first priority (other

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than with respect to any such tax, mechanics’ or other lien) security interest in the Trust Estate, or (D) amend,
modify or fail to comply with the provisions of the Basic Documents without the prior
written consent of the Controlling Party.

               SECTION 3.9 Annual Statement as to Compliance. The Issuer will deliver to the Trustee
and the Security Insurer, within 120 days after the end of each fiscal year of the Issuer
(commencing with the fiscal year ended December 31, 2005), and otherwise in compliance with the
requirements of TIA Section 314(a)(4) an Officer’s Certificate stating, as to the Authorized
Officer signing such Officer’s Certificate, that

          (i) a review of the activities of the Issuer during such year and of performance under
this Indenture has been made under such Authorized Officer’s supervision; and

          (ii) to the best of such Authorized Officer’s knowledge, based on such review, the
Issuer has complied with all conditions and covenants under this Indenture and the other
Basic Documents throughout such year, or, if there has been a default in the compliance of
any such condition or covenant, specifying each such default known to such Authorized
Officer and the nature and status thereof.

          SECTION 3.10 Issuer May Consolidate, Etc. Only on Certain Terms.

          (a) The Issuer shall not consolidate or merge with or into any other Person, unless

          (i) the Person (if other than the Issuer) formed by or surviving such consolidation or
merger shall be a Person organized and existing under the laws of the
United States of America or any state and shall expressly assume, by an indenture
supplemental hereto, executed and delivered to the Trustee, in form satisfactory to the
Trustee and the Security Insurer (so long as no Insurer Default shall have occurred and be
continuing), the due and punctual payment of the principal of and interest on all Notes and
the performance or observance of every agreement and covenant of this Indenture on the part
of the Issuer to be performed or observed, all as provided herein;

          (ii) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Trustee and the Security Insurer (so long as no Insurer Default shall
have occurred and be continuing)) to the effect that such transaction will not have any
material adverse tax consequence to the Trust, the Security Insurer, any Noteholder or the
Certificateholder;

          (v) any action as is necessary to maintain the lien and security interest created by
this Indenture shall have been taken;

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          (vi) the Issuer shall have delivered to the Trustee and the Security Insurer an
Officers’ Certificate and an Opinion of Counsel each stating that such consolidation or
merger and such supplemental indenture comply with this Article III and that all conditions
precedent herein provided for relating to such transaction have been complied with
(including any filing required by the Exchange Act); and

          (vii) so long as no Insurer Default shall have occurred and be continuing, the Issuer
shall have given the Security Insurer written notice of such consolidation or merger at
least 20 Business Days prior to the consummation of such action and shall have received the
prior written approval of the Security Insurer of such consolidation or merger and the
Issuer or the Person (if other than the Issuer) formed by or surviving such consolidation or
merger has a net worth, immediately after such consolidation or merger, that is (a) greater
than zero and (b) not less than the net worth of the Issuer immediately prior to giving
effect to such consolidation or merger.

               (b) The Issuer shall not convey or transfer all or substantially all of its properties or
assets, including those included in the Trust Estate, to any Person, unless

          (i) the Person that acquires by conveyance or transfer the properties and assets of the
Issuer the conveyance or transfer of which is hereby restricted shall (A) be a United States
citizen or a Person organized and existing under the laws of the United States of America or
any state, (B) expressly assume, by an indenture supplemental hereto, executed and delivered
to the Trustee, in form satisfactory to the Trustee, and the Security Insurer (so long as no
Insurer Default shall have occurred and be continuing), the due and punctual payment of the
principal of and interest on all Notes and the performance or observance of every agreement
and covenant of this Indenture and each of the Basic Documents on the part of the Issuer to be performed or observed, all as
provided herein, (C) expressly agree by means of such supplemental indenture that all right,
title and interest so conveyed or transferred shall be subject and subordinate to the rights
of Holders of the Notes, (D) unless otherwise provided in such supplemental indenture,
expressly agree to indemnify, defend and hold harmless the Issuer against and from any loss,
liability or expense arising under or related to this Indenture and the Notes and (E)
expressly agree by means of such supplemental indenture that such Person (or if a group of
persons, then one specified Person) shall prepare (or cause to be prepared) and make all
filings with the Commission (and any other appropriate Person) required by the Exchange Act
in connection with the Notes;

          (ii) immediately after giving effect to such transaction, no Default or Event of
Default shall have occurred and be continuing;

          (iii) the Rating Agency Condition shall have been satisfied with respect to such
transaction;

          (iv) the Issuer shall have received an Opinion of Counsel (and shall have delivered
copies thereof to the Trustee and the Security Insurer (so long as no Insurer Default shall
have occurred and be continuing)) to the effect that such transaction will not

25

 

have any material adverse tax consequence to the Trust, the Security Insurer, any Noteholder or the
Certificateholder;

          (v) any action as is necessary to maintain the lien and security interest created by
this Indenture shall have been taken;

          (vi) the Issuer shall have delivered to the Trustee and the Security Insurer an
Officers’ Certificate and an Opinion of Counsel each stating that such conveyance or
transfer and such supplemental indenture comply with this Article III and that all
conditions precedent herein provided for relating to such transaction have been complied
with (including any filing required by the Exchange Act); and

          (vii) so long as no Insurer Default shall have occurred and be continuing, the Issuer
shall have given the Security Insurer written notice of such conveyance or transfer at least
20 Business Days prior to the consummation of such action and shall have received the prior
written approval of the Security Insurer of such conveyance or transfer and the Issuer or
the Person (if other than the Issuer) formed by or surviving such conveyance or transfer has
a net worth, immediately after such conveyance or transfer, that is (a) greater than zero
and (b) not less than the net worth of the Issuer immediately prior to giving effect to such
conveyance or transfer.

               SECTION 3.11 Successor or Transferee.

               (a) Upon any consolidation or merger of the Issuer in accordance with Section 3.10(a), the
Person formed by or surviving such consolidation or merger (if other than the Issuer) shall succeed
to, and be substituted for, and may exercise every right and power of, the Issuer under this
Indenture with the same effect as if such Person had been named as the Issuer herein.

               (b) Upon a conveyance or transfer of all the assets and properties of the Issuer pursuant to
Section 3.10 (b), AmeriCredit Automobile Receivables Trust 2005-B-M will be released from every
covenant and agreement of this Indenture to be observed or performed on the part of the Issuer with
respect to the Notes immediately upon the delivery of written notice to the Trustee stating that
AmeriCredit Automobile Receivables Trust 2005-B-M is to be so released.

               SECTION 3.12 No Other Business. The Issuer shall not engage in any business other
than financing, purchasing, owning, selling and managing the Receivables in the manner contemplated
by this Indenture and the Basic Documents and activities incidental thereto. After the Funding
Period, the Issuer shall not fund the purchase of any additional Receivables.

               SECTION 3.13 No Borrowing. The Issuer shall not issue, incur, assume, guarantee or
otherwise become liable, directly or indirectly, for any Indebtedness except for (i) the Notes,
(ii) obligations owing from time to time to the Security Insurer under the Insurance Agreement and
(iii) any other Indebtedness permitted by or arising under the Basic Documents. The proceeds of
the Notes shall be used exclusively to fund the Issuer’s purchase of the Receivables and the other
assets specified in the Sale and Servicing Agreement, to fund the Spread Account and to pay the
Issuer’s organizational, transactional and start-up expenses.

26

 

               SECTION 3.14 Servicer’s Obligations. The Issuer shall cause the Servicer to comply
with Sections 4.9, 4.10 and 4.11 of the Sale and Servicing Agreement.

               SECTION 3.15 Guarantees, Loans, Advances and Other Liabilities. Except as
contemplated by the Sale and Servicing Agreement or this Indenture, the Issuer shall not make any
loan or advance or credit to, or guarantee (directly or indirectly or by an instrument having the
effect of assuring another’s payment or performance on any obligation or capability of so doing or
otherwise), endorse or otherwise become contingently liable, directly or indirectly, in connection
with the obligations, stocks or dividends of, or own, purchase, repurchase or acquire (or agree
contingently to do so) any stock, obligations, assets or securities of, or any other interest in,
or make any capital contribution to, any other Person.

               SECTION 3.16 Capital Expenditures. The Issuer shall not make any expenditure (by
long-term or operating lease or otherwise) for capital assets (either realty or personalty).

               SECTION 3.17 Compliance with Laws. The Issuer shall comply with the requirements of
all applicable laws, the non-compliance with which would, individually or in the aggregate,
materially and adversely affect the ability of the Issuer to perform its obligations under the Notes, this Indenture or any
Basic Document.

               SECTION 3.18 Restricted Payments. The Issuer shall not, directly or indirectly, (i)
pay any dividend or make any distribution (by reduction of capital or otherwise), whether in cash,
property, securities or a combination thereof, to the Owner Trustee or any owner of a beneficial
interest in the Issuer or otherwise with respect to any ownership or equity interest or security in
or of the Issuer or to the Servicer, (ii) redeem, purchase, retire or otherwise acquire for value
any such ownership or equity interest or security or (iii) set aside or otherwise segregate any
amounts for any such purpose; provided, however, that the Issuer may make, or cause
to be made, distributions to the Servicer, the Owner Trustee, the Trustee and the
Certificateholders as permitted by, and to the extent funds are available for such purpose under,
the Sale and Servicing Agreement or Trust Agreement. The Issuer will not, directly or indirectly,
make payments to or distributions from the Collection Account except in accordance with this
Indenture and the Basic Documents.

               SECTION 3.19 Notice of Events of Default. Upon a responsible officer of the Owner
Trustee having actual knowledge thereof, the Issuer agrees to give the Trustee, the Security
Insurer and the Rating Agencies prompt written notice of each Event of Default hereunder and each
default on the part of the Servicer or the Seller of its obligations under the Sale and Servicing
Agreement.

               SECTION 3.20 Further Instruments and Acts. Upon request of the Trustee or the
Security Insurer, the Issuer will execute and deliver such further instruments and do such further
acts as may be reasonably necessary or proper to carry out more effectively the purpose of this
Indenture.

               SECTION 3.21 Amendments of Sale and Servicing Agreement and Trust Agreement. The
Issuer shall not agree to any amendment to Section 12.1 of the Sale and

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Servicing Agreement or Section 10.1 of the Trust Agreement to eliminate the requirements thereunder that the Trustee or
the Holders of the Notes consent to amendments thereto as provided therein.

               SECTION 3.22 Income Tax Characterization. For purposes of federal income, state and
local income and franchise and any other income taxes, the Issuer will treat the Notes as
indebtedness and hereby instructs the Trustee, and each Noteholder (or beneficial Note Owner) shall
be deemed, by virtue of acquisition of an interest in such Note, to have agreed, to treat the Notes
as indebtedness for all applicable tax reporting purposes.

ARTICLE IV

Satisfaction and Discharge

               SECTION 4.1 Satisfaction and Discharge of Indenture. This Indenture shall cease to be
of further effect with respect to the Notes except as to (i) rights of registration of transfer and
exchange, (ii) substitution of mutilated, destroyed, lost or stolen Notes, (iii) rights of
Noteholders to receive payments of principal thereof and interest thereon, (iv) Sections 3.3, 3.4,
3.5, 3.8, 3.10, 3.12, 3.13, 3.20, 3.21 and 3.22, (v) the rights, obligations and immunities of the
Trustee hereunder (including the rights of the Trustee under Section 6.7 and the obligations of the
Trustee under Section 4.2) and (vi) the rights of Noteholders as beneficiaries hereof with respect
to the property so deposited with the Trustee payable to all or any of them, and the Trustee, on
demand of and at the expense of the Issuer, shall execute proper instruments acknowledging
satisfaction and discharge of this Indenture with respect to the Notes, when

            (A) either

            (1) all Notes theretofore authenticated and delivered (other than (i) Notes
that have been destroyed, lost or stolen and that have been replaced or paid as
provided in Section 2.5 and (ii) Notes for whose payment money has theretofore been
deposited in trust or segregated and held in trust by the Issuer and thereafter
repaid to the Issuer or discharged from such trust, as provided in Section 3.3) have
been delivered to the Trustee for cancellation and the Note Policy has expired and
been returned to the Security Insurer for cancellation; or

            (2) all Notes not theretofore delivered to the Trustee for cancellation

            (i) have become due and payable,

            (ii) will become due and payable at their respective Final Scheduled
Distribution Dates within one year, or

            (iii) are to be called for redemption within one year under arrangements
satisfactory to the Trustee for the giving of notice of redemption by the Trustee in
the name, and at the expense, of the Issuer,

and the Issuer, in the case of (i), (ii) or (iii) above, has irrevocably deposited
or caused to be irrevocably deposited with the Trust Collateral Agent cash or direct

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obligations of or obligations guaranteed by the United States of America (which will
mature prior to the date such amounts are payable), in trust for such purpose, in an
amount sufficient to pay and discharge the entire indebtedness on such Notes not
theretofore delivered to the Trustee for cancellation when due to the Final
Scheduled Distribution Date or Redemption Date (if Notes shall have been called for
redemption pursuant to Section 10.1(a)) as the case may be;

            (B) the Issuer has paid or caused to be paid all Insurer Issuer Secured
Obligations, all Trustee Issuer Secured Obligations and all amounts due and payable
to the Swap Provider; and

            (C) the Issuer has delivered to the Trustee, the Trust Collateral Agent and the
Security Insurer an Officer’s Certificate, an Opinion of Counsel and if required by
the TIA, the Trustee, the Trust Collateral Agent or the Security Insurer (so long as
an Insurer Default shall not have occurred and be continuing) an Independent
Certificate from a firm of certified public accountants, each meeting the applicable
requirements of Section 11.1(a) and each stating that all conditions precedent
herein provided for relating to the satisfaction and discharge of this Indenture
have been complied with. If the Indenture has been satisfied and discharged in
accordance with the provisions of Section 4.1(A)(2) then such Opinion of Counsel
shall also include an opinion that amounts deposited by the Issuer in accordance
with Section 4.1(A)(2) would not be characterized as a voidable preference.

               SECTION 4.2 Application of Trust Money. All moneys deposited with the Trustee
pursuant to Section 4.1 hereof shall be held in trust and applied by it, in accordance with the
provisions of the Notes, this Indenture and the other Basic Documents, to the payment, either
directly or through any Note Paying Agent, as the Trustee may determine, to the Holders of the
particular Notes for the payment or redemption of which such moneys have been deposited with the
Trustee, of all sums due and to become due thereon for principal and interest; but such moneys need
not be segregated from other funds except to the extent required herein or in the Sale and
Servicing Agreement or required by law.

               SECTION 4.3 Repayment of Moneys Held by Note Paying Agent. In connection with the
satisfaction and discharge of this Indenture with respect to the Notes, all moneys then held by any
Note Paying Agent other than the Trustee under the provisions of this Indenture with respect to
such Notes shall, upon demand of the Issuer, be paid to the Trustee to be held and applied
according to Section 3.3 and thereupon such Note Paying Agent shall be released from all further
liability with respect to such moneys.

ARTICLE V

Remedies

               SECTION 5.1 Events of Default. “Event of Default,” wherever used herein,
means any one of the following events (whatever the reason for such Event of Default and whether it
shall be voluntary or involuntary or be effected by operation of law or pursuant to any

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judgment, decree or order of any court or any order, rule or regulation of any administrative or governmental
body):

          (i) default in the payment of any interest on any Note when the same becomes due and
payable, and such default shall continue for a period of five days (solely
for purposes of this clause, a payment on the Notes funded by the Security Insurer or
the Collateral Agent pursuant to the Spread Account Agreement shall be deemed to be a
payment made by the Issuer); or

          (ii) default in the payment of the principal of or any installment of the principal of
any Note when the same becomes due and payable (solely for purposes of this clause, a
payment on the Notes funded by the Security Insurer or the Collateral Agent pursuant to the
Spread Account Agreement shall be deemed to be a payment made by the Issuer); or

          (iii) so long as an Insurer Default shall not have occurred and be continuing, an
Insurance Agreement Event of Default shall have occurred; provided, however,
that the occurrence of an Insurance Agreement Event of Default may not form the basis of an
Event of Default unless the Security Insurer shall, upon prior written notice to the Rating
Agencies, have delivered to the Issuer and the Trustee and not rescinded a written notice
specifying that such Insurance Agreement Event of Default constitutes an Event of Default
under the Indenture; or

          (iv) default in the observance or performance of any covenant or agreement of the
Issuer made in this Indenture (other than a covenant or agreement, a default in the
observance or performance of which is elsewhere in this Section specifically dealt with), or
any representation or warranty of the Issuer made in this Indenture, in any Basic Document
or in any certificate or any other writing delivered pursuant hereto or in connection
herewith proving to have been incorrect in any material respect as of the time when the same
shall have been made, and such default shall continue or not be cured, or the circumstance
or condition in respect of which such misrepresentation or warranty was incorrect shall not
have been eliminated or otherwise cured, for a period of 30 days (or for such longer period,
not in excess of 90 days, as may be reasonably necessary to remedy such default; provided
that such default is capable of remedy within 90 days or less and the Servicer on behalf of
the Owner Trustee delivers an Officer’s Certificate to the Trustee to the effect that the
Issuer has commenced, or will promptly commence and diligently pursue, all reasonable
efforts to remedy such default) after there shall have been given, by registered or
certified mail, to the Issuer by the Trustee or to the Issuer and the Trustee by the
Security Insurer (or, if an Insurer Default shall have occurred and is continuing, by the
Holders of at least 25% of the Outstanding Amount of the Notes), a written notice specifying
such default or incorrect representation or warranty and requiring it to be remedied and
stating that such notice is a “Notice of Default” hereunder; or

          (v) the filing of a decree or order for relief by a court having jurisdiction in the
premises in respect of the Issuer or any substantial part of the Trust Estate in an
involuntary case under any applicable federal or state bankruptcy, insolvency or other

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similar law now or hereafter in effect, or appointing a receiver, liquidator, assignee,
custodian, trustee, sequestrator or similar official of the Issuer or for any substantial
part of the Trust Estate, or ordering the winding-up or liquidation of the Issuer’s affairs,
and such decree or order shall remain unstayed and in effect for a period of 60 consecutive
days; or

          (vi) the commencement by the Issuer 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 the Issuer to the entry of an order for relief in an involuntary case under any such law,
or the consent by the Issuer to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of the Issuer or
for any substantial part of the Trust Estate, or the making by the Issuer of any general
assignment for the benefit of creditors, or the failure by the Issuer generally to pay its
debts as such debts become due, or the taking of action by the Issuer in furtherance of any
of the foregoing.

               The Issuer shall deliver to the Trustee and the Security Insurer, within five days after the
occurrence thereof, written notice in the form of an Officer’s Certificate of any event which with
the giving of notice and the lapse of time would become an Event of Default under clause (iii), its
status and what action the Issuer is taking or proposes to take with respect thereto.

               SECTION 5.2 Rights Upon Event of Default.

               (a) If an Insurer Default shall not have occurred and be continuing and an Event of Default
shall have occurred and be continuing, the Trustee shall at the written direction of the Security
Insurer declare that the Notes shall become immediately due and payable at par, together with
accrued interest thereon. If an Event of Default shall have occurred and be continuing, the
Controlling Party may exercise any of the remedies specified in Section 5.4(a). In the event of
any acceleration of any Notes by operation of this Section 5.2, the Trustee shall continue to be
entitled to make claims under the Note Policy pursuant to the Sale and Servicing Agreement for
Insured Payments on the Notes and the Swap Provider shall continue to be entitled to make claims
under the Swap Policy pursuant to the terms of the Swap Policy. Payments under the Note Policy
following acceleration of any Notes shall be applied by the Trustee:

          FIRST: to Noteholders for amounts due and unpaid on the Notes for interest, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Notes for interest; and

          SECOND: to Noteholders for amounts due and unpaid on the Notes for principal, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Notes for principal.

       Payments under the Swap Policy following acceleration of the Notes shall be applied to pay the
applicable Swap Provider amounts due and unpaid pursuant to the Swap Agreement and the Sale and
Servicing Agreement.

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               (b) In the event any Notes are accelerated due to an Event of Default, the Security Insurer
shall have the right (in addition to its obligation to pay Insured Payments on the Notes in
accordance with the Note Policy and to pay amounts due under the Swap Policy), but not the
obligation, to make payments under the Note Policy or otherwise of interest and principal due on
such Notes, in whole or in part, on any date or dates following such acceleration as the Security
Insurer, in its sole discretion, shall elect.

               (c) If an Insurer Default shall have occurred and be continuing and an Event of Default shall
have occurred and be continuing, the Trustee in its discretion may, or, if so requested in writing
by Holders holding Notes representing not less than a majority of the Outstanding Amount of the
Notes, shall declare by written notice to the Issuer that the Notes become, whereupon they shall
become, immediately due and payable at par, together with accrued interest thereon.

               (d) At any time after such declaration of acceleration of maturity has been made and before a
judgment or decree for payment of the money due has been obtained by the Trustee as hereinafter in
this Article V provided, then the Security Insurer in its sole discretion or if an Insurer Default
has occurred and is continuing, the Noteholders representing a majority of the Outstanding Amount
of the Notes, by written notice to the Issuer and the Trustee, may rescind and annul such
declaration and its consequences if:

               (i) the Issuer has paid or deposited with the Trustee a sum sufficient to pay:

          (A) all payments of principal of and interest on all Notes and all
other amounts that would then be due hereunder or upon such Notes if the
Event of Default giving rise to such acceleration had not occurred; and

          (B) all sums paid or advanced by the Trustee hereunder and the
reasonable compensation, expenses, disbursements and advances of the Trustee
and its agents and counsel; and

          (ii) all Events of Default, other than the nonpayment of the principal of the Notes
that has become due solely by such acceleration, have been cured or waived as provided in
Section 5.12.

               No such rescission shall affect any subsequent default or impair any right consequent thereto.

               SECTION 5.3 Collection of Indebtedness and Suits for Enforcement by Trustee.

               (a) The Issuer covenants that if (i) default is made in the payment of any interest on any
Note when the same becomes due and payable, and such default continues for a period of five days,
or (ii) default is made in the payment of the principal of or any installment of the principal of
any Note when the same becomes due and payable, the Issuer will pay to the Trustee, for the benefit
of the Holders of the Notes, the whole amount then due and payable on such Notes for principal and
interest, with interest upon the overdue principal, and, to the extent payment at such rate of
interest shall be legally enforceable, upon overdue installments of

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interest, at the applicable Interest Rate and in addition thereto such further amount as shall be sufficient to cover the costs
and expenses of collection, including the reasonable compensation, expenses, disbursements and
advances of the Trustee and its agents and counsel.

               (b) Each Issuer Secured Party hereby irrevocably and unconditionally appoints the Controlling
Party as the true and lawful attorney-in-fact of such Issuer Secured Party for so long as such
Issuer Secured Party is not the Controlling Party, with full power of
substitution, to execute, acknowledge and deliver any notice, document, certificate, paper,
pleading or instrument and to do in the name of the Controlling Party as well as in the name, place
and stead of such Issuer Secured Party such acts, things and deeds for or on behalf of and in the
name of such Issuer Secured Party under this Indenture (including specifically under Section 5.4)
and under the Basic Documents which such Issuer Secured Party could or might do or which may be
necessary, desirable or convenient in such Controlling Party’s sole discretion to effect the
purposes contemplated hereunder and under the Basic Documents and, without limitation, following
the occurrence of an Event of Default, exercise full right, power and authority to take, or defer
from taking, any and all acts with respect to the administration, maintenance or disposition of the
Trust Estate.

               (c) If an Event of Default occurs and is continuing, the Trustee may in its discretion but
with the consent of the Controlling Party and shall, at the direction of the Controlling Party,
proceed to protect and enforce its rights and the rights of the Noteholders by such appropriate
Proceedings as the Trustee or the Controlling Party shall deem most effective to protect and
enforce any such rights, whether for the specific enforcement of any covenant or agreement in this
Indenture or in aid of the exercise of any power granted herein, or to enforce any other proper
remedy or legal or equitable right vested in the Trustee by this Indenture or by law.

               (d) Notwithstanding anything to the contrary contained in this Indenture (including, without
limitation, Sections 5.4(a), 5.12, 5.13 and 5.17), if the Issuer fails to perform its obligations
under Section 10.1(b) hereof when and as due, the Trustee shall, at the written direction of the
Controlling Party, or if an Insurer Default shall have occurred and be continuing, at the written
direction of the Noteholders, proceed to protect and enforce its rights and the rights of the
Noteholders by such appropriate proceedings as the Controlling Party or the Noteholders shall deem
most effective to protect and enforce any such rights, whether for specific performance of any
covenant or agreement in this Indenture or in aid of the exercise of any power granted herein, or
to enforce any other proper remedy or legal or equitable right vested in the Trustee by this
Indenture or by law.

               (e) In case there shall be pending, relative to the Issuer or any other obligor upon the Notes
or any Person having or claiming an ownership interest in the Trust Estate, proceedings under Title
11 of the United States Code or any other applicable federal or state bankruptcy, insolvency or
other similar law, or in case a receiver, assignee or trustee in bankruptcy or reorganization,
liquidator, sequestrator or similar official shall have been appointed for or taken possession of
the Issuer or its property or such other obligor or Person, or in case of any other comparable
Proceedings relative to the Issuer or other obligor upon the Notes, or to the creditors or property
of the Issuer or such other obligor, the Trustee, irrespective of whether the principal of any
Notes shall then be due and payable as therein expressed or by

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declaration or otherwise and irrespective of whether the Trustee shall have made any demand pursuant to the provisions of this
Section, shall be entitled and empowered, by intervention in such proceedings or otherwise:

          (i) to file and prove a claim or claims for the whole amount of principal and interest
owing and unpaid in respect of the Notes and to file such other papers or documents as may
be necessary or advisable in order to have the claims of the Trustee
(including any claim for reasonable compensation to the Trustee and each predecessor
Trustee, and their respective agents, attorneys and counsel, and for reimbursement of all
expenses and liabilities incurred, and all advances made, by the Trustee and each
predecessor Trustee, except as a result of negligence, bad faith or willful misconduct) and
of the Noteholders allowed in such Proceedings;

          (ii) unless prohibited by applicable law and regulations, to vote on behalf of the
Noteholders in any election of a trustee, a standby trustee or person performing similar
functions in any such Proceedings;

          (iii) to collect and receive any moneys or other property payable or deliverable on any
such claims and to distribute all amounts received with respect to the claims of the
Noteholders and of the Trustee on their behalf; and

          (iv) to file such proofs of claim and other papers or documents as may be necessary or
advisable in order to have the claims of the Trustee or the Noteholders allowed in any
Proceedings relative to the Issuer, its creditors and its property;

and any trustee, receiver, liquidator, custodian or other similar official in any such Proceeding
is hereby authorized by each of such Noteholders to make payments to the Trustee, and, in the event
that the Trustee shall consent to the making of payments directly to such Noteholders, to pay to
the Trustee such amounts as shall be sufficient to cover reasonable compensation to the Trustee,
each predecessor Trustee and their respective agents, attorneys and counsel, and all other expenses
and liabilities incurred, and all advances made, by the Trustee and each predecessor Trustee except
as a result of negligence or bad faith.

               (f) Nothing herein contained shall be deemed to authorize the Trustee to authorize or consent
to or vote for or accept or adopt on behalf of any Noteholder any plan of reorganization,
arrangement, adjustment or composition affecting the Notes or the rights of any Holder thereof or
to authorize the Trustee to vote in respect of the claim of any Noteholder in any such Proceeding
except, as aforesaid, to vote for the election of a trustee in bankruptcy or similar person.

               (g) All rights of action and of asserting claims under this Indenture, the Spread Account
Agreement or under any of the Notes, may be enforced by the Trustee without the possession of any
of the Notes or the production thereof in any trial or other proceedings relative thereto, and any
such action or Proceedings instituted by the Trustee shall be brought in its own name as trustee of
an express trust, and any recovery of judgment, subject to the payment of the expenses,
disbursements and compensation of the Trustee, each predecessor Trustee and their respective agents
and attorneys, shall be for the ratable benefit of the Holders of the Notes.

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               (h) In any Proceedings brought by the Trustee (and also any Proceedings involving the
interpretation of any provision of this Indenture or the Spread Account Agreement), the Trustee
shall be held to represent all the Holders of the Notes, and it shall not be necessary to make any
Noteholder a party to any such proceedings.

               SECTION 5.4 Remedies.

               (a) If an Event of Default shall have occurred and be continuing, the Controlling Party may do
one or more of the following (subject to Section 5.5):

          (i) institute Proceedings in its own name and as trustee of an express trust for the
collection of all amounts then payable on the Notes or under this Indenture with respect
thereto, whether by declaration or otherwise, enforce any judgment obtained, and collect
from the Issuer and any other obligor upon such moneys adjudged due;

          (ii) institute Proceedings from time to time for the complete or partial foreclosure of
this Indenture with respect to the Trust Estate;

          (iii) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of the Trustee and the
Holders of the Notes; and

          (iv) direct the Trust Collateral Agent to sell the Trust Estate or any portion thereof
or rights or interest therein, at one or more public or private sales called and conducted
in any manner permitted by law; provided, however, that if the Trustee is
the Controlling Party, the Trustee may not sell or otherwise liquidate the Trust Estate
following an Event of Default unless:

               (A) such Event of Default is of the type described in Section 5.1(i) or (ii); or

               (B) either

          (x) the Holders of 100% of the Outstanding Amount of the Notes
consent thereto, or

          (y) the proceeds of such sale or liquidation distributable to
the Noteholders are sufficient to discharge in full all amounts then
due and unpaid upon such Notes for principal and interest and amounts
due to the Security Insurer and amounts due to the Swap Counterparty,
or

          (z) the Trustee determines that the Trust Estate will not
continue to provide sufficient funds for the payment of principal of
and interest on the Notes as they would have become due if the Notes
had not been declared due and payable, and the Trustee provides prior
written notice to the Rating Agencies and obtains

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the consent of Holders of 66-2/3% of the Outstanding Amount of the Notes.

               In determining such sufficiency or insufficiency with respect to clause (y) and (z), the
Trustee may, but need not, obtain and conclusively rely upon an opinion of an Independent
investment banking or accounting firm of national reputation as to the feasibility of such
proposed action and as to the sufficiency of the Trust Estate for such purpose.

               SECTION 5.5 Optional Preservation of the Receivables. If the Trustee is the
Controlling Party and if the Notes have been declared to be due and payable under Section 5.2
following an Event of Default and such declaration and its consequences have not been rescinded and
annulled, the Trustee may, but need not, elect to direct the Trust Collateral Agent to maintain
possession of the Trust Estate. It is the desire of the parties hereto and the Noteholders that
there be at all times sufficient funds for the payment of principal of and interest on the Notes
and amounts due to the Security Insurer, and the Trustee shall take such desire into account when
determining whether or not to direct the Trust Collateral Agent to maintain possession of the Trust
Estate. In determining whether to direct the Trust Collateral Agent to maintain possession of the
Trust Estate, the Trustee may, but need not, obtain and conclusively rely upon an opinion of an
Independent investment banking or accounting firm of national reputation as to the feasibility of
such proposed action and as to the sufficiency of the Trust Estate for such purpose.

               SECTION 5.6 Priorities.

               (a) Following (1) the acceleration of the Notes pursuant to Section 5.2 or (2) if an Insurer
Default shall have occurred and be continuing, the occurrence of an Event of Default pursuant to
Section 5.1(i), 5.1(ii), 5.1(iv), 5.1(v) or 5.1(vi) of this Indenture or (3) the receipt of
Insolvency Proceeds pursuant to Section 10.1(b) of the Sale and Servicing Agreement, the
Distribution Amount, including any money or property collected pursuant to Section 5.4 of this
Indenture and any such Insolvency Proceeds, shall be applied by the Trust Collateral Agent on the
related Distribution Date in the following order of priority:

          FIRST: amounts due and owing and required to be distributed to the Servicer (provided
there is no Servicer Event of Default), the Swap Provider (other than any Swap Termination
Payments due under the Swap Agreement which are not covered by the Swap Policy), the Lockbox
Bank, the Owner Trustee, the Trustee, Back Up Servicer and the Trust Collateral Agent,
respectively, pursuant to priorities (i), (ii) and (iii) of Section 5.7(b) of the Sale and
Servicing Agreement and not previously distributed, in the order of such priorities as set
forth therein and without limitation, preference or priority of any kind within such
priorities;

          SECOND: to Noteholders for amounts due and unpaid on the Notes for interest, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Notes for interest;

          THIRD: to Noteholders for amounts due and unpaid on the Notes for principal, ratably,
without preference or priority of any kind, according to the amounts due and payable on the
Notes for principal;

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          FOURTH: amounts due and owing and required to be distributed to the Security Insurer
pursuant to priority (v) of Section 5.7(b) of the Sale and Servicing Agreement and not
previously distributed;

          FIFTH: to the Swap Provider, Swap Termination Payments not covered by the Swap Policy;
and

          SIXTH: amounts due and owing and required to be distributed to the Security Insurer
pursuant to priority (x) of Section 5.7(b) of the Sale and Servicing Agreement and not
previously distributed and then to the Collateral Agent to be applied as provided in the
Spread Account Agreement;

provided that any amounts collected from the Pre-Funding Account or the Capitalized
Interest Account shall be paid, first, for amounts due and unpaid on the Notes for principal for
distribution to Noteholders in accordance with Section 10.1(b) and, second, in accordance with
priorities FIRST through FIFTH above.

               (b) The Trustee may fix a record date and payment date for any payment to Noteholders pursuant
to this Section 5.6. At least 15 days before such record date the Issuer shall mail to each
Noteholder and the Trustee a notice that states the record date, the payment date and the amount to
be paid.

               SECTION 5.7 Limitation of Suits. No Holder of any Note shall have any right to
institute any proceeding, judicial or otherwise, with respect to this Indenture, or for the
appointment of a receiver or trustee, or for any other remedy hereunder, unless:

          (i) such Holder has previously given written notice to the Trustee of a continuing
Event of Default;

          (ii) the Holders of not less than 25% of the Outstanding Amount of the Notes have made
written request to the Trustee to institute such Proceeding in respect of such Event of
Default in its own name as Trustee hereunder;

          (iii) such Holder or Holders have offered to the Trustee indemnity reasonably
satisfactory to it against the costs, expenses and liabilities to be incurred in complying
with such request;

          (iv) the Trustee for 60 days after its receipt of such notice, request and offer of
indemnity has failed to institute such Proceedings;

          (v) no direction inconsistent with such written request has been given to the Trustee
during such 60-day period by the Holders of a majority of the Outstanding Amount of the
Notes; and

          (vi) an Insurer Default shall have occurred and be continuing;

it being understood and intended that no one or more Noteholders shall have any right in any manner
whatever by virtue of, or by availing of, any provision of this Indenture to affect, disturb

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or prejudice the rights of any other Noteholders or to obtain or to seek to obtain priority or
preference over any other Holders or to enforce any right under this Indenture, except in the
manner herein provided.

               SECTION 5.8 Unconditional Rights of Noteholders To Receive Principal and Interest.
Notwithstanding any other provisions in this Indenture, the Holder of any Note shall have the
right, which is absolute and unconditional, to receive payment of the principal of and interest, if
any, on such Note on or after the respective due dates thereof expressed in such Note or in this
Indenture (or, in the case of redemption, on or after the Redemption Date) and to institute suit
for the enforcement of any such payment, and such right shall not be impaired without the consent
of such Holder.

               SECTION 5.9 Restoration of Rights and Remedies. If the Controlling Party or any
Noteholder has instituted any Proceeding to enforce any right or remedy under this Indenture and
such proceeding has been discontinued or abandoned for any reason or has been determined adversely
to the Trustee or to such Noteholder, then and in every such case the Issuer, the Trustee and the
Noteholders shall, subject to any determination in such Proceeding, be restored severally and
respectively to their former positions hereunder, and thereafter all rights and remedies of the
Trustee and the Noteholders shall continue as though no such Proceeding had been instituted.

               SECTION 5.10 Rights and Remedies Cumulative. No right or remedy herein conferred upon
or reserved to the Controlling Party or to the Noteholders is intended to be exclusive of any other
right or remedy, and every right and remedy shall, to the extent permitted by law, be cumulative
and in addition to every other right and remedy given hereunder or now or hereafter existing at law
or in equity or otherwise. The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any other appropriate right
or remedy.

               SECTION 5.11 Delay or Omission Not a Waiver. No delay or omission of the Trustee, the
Controlling Party, the Security Insurer or any Holder of any Note to exercise any right or remedy
accruing upon any Default or Event of Default shall impair any such right or remedy or constitute a
waiver of any such Default or Event of Default or an acquiescence therein. Every right and remedy
given by this Article V or by law to the Trustee or to the Noteholders may be exercised from time
to time, and as often as may be deemed expedient, by the Trustee or by the Noteholders, as the case
may be.

               SECTION 5.12 Control by Noteholders. If the Trustee is the Controlling Party, the
Holders of a majority of the Outstanding Amount of the Notes shall have the right to direct the
time, method and place of conducting any Proceeding for any remedy available to the Trustee with
respect to the Notes or exercising any trust or power conferred on the Trustee; provided that

          (i) such direction shall not be in conflict with any rule of law or with this
Indenture;

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          (ii) subject to the express terms of Section 5.4, any direction to the Trustee to sell
or liquidate the Trust Estate shall be by the Noteholders representing not less than 100% of
the Outstanding Amount of the Notes;

          (iii) if the conditions set forth in Section 5.5 have been satisfied and the Trustee
elects to retain the Trust Estate pursuant to such Section, then any direction to the
Trustee by Noteholders representing less than 100% of the Outstanding Amount of the Notes to
sell or liquidate the Trust Estate shall be of no force and effect; and

          (iv) the Trustee may take any other action deemed proper by the Trustee that is not
inconsistent with such direction;

provided, however, that, subject to Article VI, the Trustee need not take any
action that it determines might involve it in liability, financial or otherwise, without receiving
indemnity satisfactory to it, or might materially adversely affect the rights of any Noteholders
not consenting to such action.

               SECTION 5.13 Waiver of Past Defaults. Prior to the declaration of the acceleration of
the maturity of the Notes as provided in Section 5.4, the Security Insurer or, if an Insurer
Default shall have occurred and be continuing, the Noteholders of not less than a majority of the
Outstanding Amount of the Notes may waive any past Default or Event of Default and its consequences
except a Default (a) in payment of principal of or interest on any of the Notes or (b) in respect
of a covenant or provision hereof which cannot be modified or amended without the consent of the
Holder of each Note. In the case of any such waiver, the Issuer, the Trustee and the Holders of
the Notes shall be restored to their former positions and rights hereunder, respectively; but no
such waiver shall extend to any subsequent or other Default or impair any right consequent thereto.

               Upon any such waiver, such Default shall cease to exist and be deemed to have been cured and
not to have occurred, and any Event of Default arising therefrom shall be deemed to have been cured
and not to have occurred, for every purpose of this Indenture; but no such waiver shall extend to
any subsequent or other Default or Event of Default or impair any right consequent thereto.

               SECTION 5.14 Undertaking for Costs. All parties to this Indenture agree, and each
Holder of any Note by such Holder’s acceptance thereof shall be deemed to have agreed, that any
court may in its discretion require, in any suit for the enforcement of any right or remedy under
this Indenture, or in any suit against the Trustee for any action taken, suffered or omitted by it
as Trustee, the filing by any party litigant in such suit of an undertaking to pay the costs of
such suit, and that such court may in its discretion assess reasonable costs and expenses,
including reasonable attorneys’ fees and expenses, against any party litigant in such suit, having
due regard to the merits and good faith of the claims or defenses made by such party litigant; but
the provisions of this Section shall not apply to (a) any suit instituted by the Trustee, (b) any
suit instituted by any Noteholder, or group of Noteholders, in each case holding in the aggregate
more than 10% of the Outstanding Amount of the Notes or (c) any suit instituted by any Noteholder
for the enforcement of the payment of principal of or interest on any Note on or after

39

 

the respective due dates expressed in such Note and in this Indenture (or, in the case of redemption, on or after the
Redemption Date).

               SECTION 5.15 Waiver of Stay or Extension Laws. The Issuer covenants (to the extent
that it may lawfully do so) that it will not at any time insist upon, or plead or in any manner
whatsoever, claim or take the benefit or advantage of, any stay or extension law wherever enacted,
now or at any time hereafter in force, that may affect the covenants or the performance of this
Indenture; and the Issuer (to the extent that it may lawfully do so) hereby expressly waives all
benefit or advantage of any such law, and covenants that it will not hinder, delay or impede the
execution of any power herein granted to the Trustee, but will suffer and permit the execution of
every such power as though no such law had been enacted.

               SECTION 5.16 Action on Notes. The Trustee’s right to seek and recover judgment on the
Notes or under this Indenture shall not be affected by the seeking, obtaining or application of any
other relief under or with respect to this Indenture. Neither the lien of this Indenture nor any
rights or remedies of the Trustee or the Noteholders shall be impaired by the recovery of any
judgment by the Trustee against the Issuer or by the levy of any execution under such judgment upon
any portion of the Trust Estate or upon any of the assets of the Issuer.

               SECTION 5.17 Performance and Enforcement of Certain Obligations.

               (a) Promptly following a request from the Trustee to do so and at the Servicer’s expense, the
Issuer agrees to take all such lawful action as the Trustee may request to compel or secure the
performance and observance by the Seller and the Servicer, as applicable, of each of their
obligations to the Issuer under or in connection with the Sale and Servicing Agreement in
accordance with the terms thereof, and to exercise any and all rights, remedies, powers and
privileges lawfully available to the Issuer under or in connection with the Sale and Servicing
Agreement to the extent and in the manner directed by the Trustee, including the transmission of
notices of default on the part of the Seller or the Servicer thereunder and the institution of
legal or administrative actions or Proceedings to compel or secure performance by the Seller or the
Servicer of each of their obligations under the Sale and Servicing Agreement.

               (b) If the Trustee is a Controlling Party and if an Event of Default has occurred and is
continuing, the Trustee may, and, at the written direction of the Holders of 66-2/3% of the
Outstanding Amount of the Notes shall, subject to Article VI, exercise all rights, remedies,
powers, privileges and claims of the Issuer against the Seller or the Servicer under or in
connection with the Sale and Servicing Agreement, including the right or power to take any action
to compel or secure performance or observance by the Seller or the Servicer of each of their
obligations to the Issuer thereunder and to give any consent, request, notice, direction,
approval, extension or waiver under the Sale and Servicing Agreement, and any right of the
Issuer to take such action shall be suspended.

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ARTICLE VI

The Trustee and the Trust Collateral Agent

          SECTION 6.1 Duties of Trustee.

          (a) If an Event of Default has occurred and is continuing, the Trustee shall exercise the
rights and powers vested in it by this Indenture and the Basic Documents to which it is a Party and
use the same degree of care and skill in its exercise as a prudent person would exercise or use
under the circumstances in the conduct of such person’s own affairs.

          (b) Except during the continuance of an Event of Default:

     (i) the Trustee undertakes to perform such duties and only such duties as are
specifically set forth in this Indenture and no implied covenants or obligations shall be
read into this Indenture against the Trustee; and

     (ii) in the absence of bad faith on its part, the Trustee may conclusively rely, as to
the truth of the statements and the correctness of the opinions expressed therein, upon
certificates or opinions furnished to the Trustee and conforming to the requirements of this
Indenture; however, the Trustee shall examine the certificates and opinions to determine
whether or not they conform on their face to the requirements of this Indenture.

          (c) The Trustee may not be relieved from liability for its own negligent action, its own
negligent failure to act or its own willful misconduct, except that:

     (i) this paragraph does not limit the effect of paragraph (b) of this Section;

     (ii) the Trustee shall not be liable for any error of judgment made in good faith by a
Responsible Officer unless it is proved that the Trustee was negligent in ascertaining the
pertinent facts; and

     (iii) the Trustee shall not be liable with respect to any action it takes or omits to
take in good faith in accordance with a direction received by it pursuant to Section 5.12.

          (d) The Trustee shall not be liable for interest on any money received by it except as the
Trustee may agree in writing with the Issuer.

          (e) Money held in trust by the Trustee need not be segregated from other funds except to the
extent required by law or the terms of this Indenture or the Sale and Servicing Agreement.

          (f) No provision of this Indenture shall require the Trustee to expend or risk its own funds
or otherwise incur financial liability in the performance of any of its duties hereunder or in the
exercise of any of its rights or powers, if it shall have reasonable grounds to

41

 

believe that
repayment of such funds or indemnity reasonably satisfactory to it against such risk or liability
is not assured to it.

          (g) Every provision of this Indenture relating to the conduct or affecting the liability of or
affording protection to the Trustee shall be subject to the provisions of this Section 6.1 and to
the provisions of the TIA.

          (h) The Trustee shall, upon two Business Days’ prior notice to the Trustee, permit any
representative of the Security Insurer at the expense of the Trust, during the Trustee’s normal
business hours, to examine all books of account, records, reports and other papers of the Trustee
relating to the Notes, to make copies and extracts therefrom and to discuss the Trustee’s affairs
and actions, as such affairs and actions relate to the Trustee’s duties with respect to the Notes,
with the Trustee’s officers and employees responsible for carrying out the Trustee’s duties with
respect to the Notes.

          (i) The Trustee shall, and hereby agrees that it will, perform all of the obligations and
duties required of it under the Sale and Servicing Agreement.

          (j) The Trustee shall, and hereby agrees that it will, hold the Note Policy in trust, and will
hold any proceeds of any claim on the Note Policy in trust solely for the use and benefit of the
Noteholders.

          (k) Without limiting the generality of this Section 6.1, the Trustee shall have no duty (i) to
see to any recording, filing or depositing of this Indenture or any agreement referred to herein or
any financing statement evidencing a security interest in the Financed Vehicles, or to see to the
maintenance of any such recording or filing or depositing or to any recording, refiling or
redepositing of any thereof, (ii) to see to any insurance of the Financed Vehicles or Obligors or
to effect or maintain any such insurance, (iii) to see to the payment or discharge of any tax,
assessment or other governmental charge or any Lien or encumbrance of any kind owing with respect
to, assessed or levied against any part of the Trust, (iv) to confirm or verify the contents of any
reports or certificates delivered to the Trustee pursuant to this Indenture or the Sale and
Servicing Agreement believed by the Trustee to be genuine and to have been signed or presented by
the proper party or parties, or (v) to inspect the Financed Vehicles at any time or ascertain or
inquire as to the performance of observance of any of the Issuer’s, the Seller’s or the Servicer’s
representations, warranties or covenants or the Servicer’s duties and obligations as Servicer and
as custodian of the Receivable Files under the Sale and Servicing Agreement.

          (l) In no event shall Wells Fargo Bank, National Association, in any of its capacities
hereunder, be deemed to have assumed any duties of the Owner Trustee under the Delaware Statutory
Trust Statute, common law, or the Trust Agreement.

          SECTION 6.2 Rights of Trustee.

          (a) The Trustee may conclusively rely on any document believed by it to be genuine and to have
been signed or presented by the proper person. The Trustee need not investigate any fact or matter
stated in the document.

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          (b) Before the Trustee acts or refrains from acting, it may require an Officer’s Certificate
or an Opinion of Counsel. The Trustee shall not be liable for any action it takes or omits to take
in good faith in reliance on the Officer’s Certificate or Opinion of Counsel.

          (c) The Trustee may execute any of the trusts or powers hereunder or perform any duties
hereunder either directly or by or through agents or attorneys or a custodian or nominee, and the
Trustee shall not be responsible for any misconduct or negligence on the part of, or for the
supervision of, AmeriCredit Financial Services, Inc., or any other such agent, attorney, custodian
or nominee appointed with due care by it hereunder.

          (d) The Trustee shall not be liable for any action it takes or omits to take in good faith
which it believes to be authorized or within its rights or powers; provided,
however, that the Trustee’s conduct does not constitute willful misconduct, negligence or
bad faith.

          (e) The Trustee may consult with counsel, and the advice or opinion of counsel with respect to
legal matters relating to this Indenture and the Notes shall be full and complete authorization and
protection from liability in respect to any action taken, omitted or suffered by it hereunder in
good faith and in accordance with the advice or opinion of such counsel.

          (f) The Trustee shall be under no obligation to institute, conduct or defend any litigation
under this Indenture or in relation to this Indenture, at the request, order or direction of any of
the Noteholders or the Controlling Party, pursuant to the provisions of this Indenture, unless such
Noteholders or the Controlling Party shall have offered to the Trustee reasonable security or
indemnity against the costs, expenses and liabilities that may be incurred therein or thereby;
provided, however, that the Trustee shall, upon the occurrence of an Event of
Default (that has not been cured), exercise the rights and powers vested in it by this Indenture
with reasonable care and skill.

          (g) The Trustee shall not be bound to make any investigation into the facts or matters stated
in any resolution, certificate, statement, instrument, opinion, report, notice, request, consent,
order, approval, bond or other paper or document, unless requested in writing to do so by the
Security Insurer (so long as no Insurer Default shall have occurred and be continuing) or (if an
Insurer Default shall have occurred and be continuing) by the Noteholders evidencing not less than
25% of the Outstanding Amount thereof; provided, however, that if the payment
within a reasonable time to the Trustee of the costs, expenses or liabilities likely to be incurred
by it in the making of such investigation is, in the opinion of the Trustee, not reasonably assured
to the Trustee by the security afforded to it by the terms of this Indenture or the Sale and
Servicing Agreement, the Trustee may require reasonable indemnity against such cost, expense or
liability as a condition to so proceeding; the reasonable expense of every such examination
shall be paid by the Person making such request, or, if paid by the Trustee, shall be
reimbursed by the Person making such request upon demand.

          (h) The Trustee shall not be liable for any losses on investments except for losses resulting
from the failure of the Trustee to make an investment in accordance with instructions given in
accordance hereunder. If the Trustee acts as the Note Paying Agent or Note

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Registrar, the rights
and protections afforded to the Trustee shall be afforded to the Note Paying Agent and Note
Registrar.

          SECTION 6.3 Individual Rights of Trustee. The Trustee in its individual or any other
capacity may become the owner or pledgee of Notes and may otherwise deal with the Issuer or its
Affiliates with the same rights it would have if it were not Trustee. Any Note Paying Agent, Note
Registrar, co-registrar or co-Note Paying Agent may do the same with like rights. However, the
Trustee must comply with Sections 6.11 and 6.12.

          SECTION 6.4 Trustee’s Disclaimer. The Trustee shall not be responsible for and makes
no representation as to the validity or adequacy of this Indenture, the Trust Estate or the Notes,
it shall not be accountable for the Issuer’s use of the proceeds from the Notes, and it shall not
be responsible for any statement of the Issuer in the Indenture or in any document issued in
connection with the sale of the Notes or in the Notes other than the Trustee’s certificate of
authentication.

          SECTION 6.5 Notice of Defaults. If an Event of Default occurs and is continuing and
if it is either known by, or written notice of the existence thereof has been delivered to, a
Responsible Officer of the Trustee, the Trustee shall mail to each Noteholder notice of the Default
within 90 days after such knowledge or notice occurs. Except in the case of a Default in payment
of principal of or interest on any Note (including payments pursuant to the mandatory redemption
provisions of such Note), the Trustee may withhold the notice if and so long as it in good faith
determines that withholding the notice is in the interests of Noteholders.

          SECTION 6.6 Reports by Trustee to Holders. The Trustee shall deliver to each
Noteholder such information as may be reasonably required to enable such Holder to prepare its
federal and state income tax returns.

          SECTION 6.7 Compensation and Indemnity.

          (a) Pursuant to Section 5.7(b) of the Sale and Servicing Agreement, the Issuer shall, or shall
cause the Servicer to, pay to the Trustee from time to time compensation for its services. The
Trustee’s compensation shall not be limited by any law on compensation of a trustee of an express
trust. The Issuer shall cause the Servicer to reimburse the Trustee and the Trust Collateral Agent
for all reasonable out-of-pocket expenses incurred or made by it, including costs of collection, in
addition to the compensation for its services. Such expenses
shall include the reasonable compensation and expenses, disbursements and advances of the
Trustee’s, the Backup Servicer’s, the Collateral Agent’s and the Trust Collateral Agent’s agents,
counsel, accountants and experts. The Issuer shall cause the Servicer to indemnify the Trustee,
the Trust Collateral Agent and their respective officers, directors, employees and agents against
any and all loss, liability or expense (including attorneys’ fees and expenses) incurred by each of
them in connection with the acceptance or the administration of this Trust and the performance of
its duties hereunder. The Trustee, Trust Collateral Agent, the Collateral Agent or the Backup
Servicer shall notify the Issuer and the Servicer promptly of any claim for which it may seek
indemnity. Failure by the Trustee or Trust Collateral Agent to so notify the Issuer and the
Servicer shall not relieve the Issuer of its obligations hereunder or the Servicer of its
obligations under Article XI of the Sale and Servicing Agreement. The Issuer shall cause the
Servicer to

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defend the claim, and the Trustee, Trust Collateral Agent, the Collateral Agent or the
Backup Servicer may have separate counsel and the Issuer shall cause the Servicer to pay the fees
and expenses of such counsel. Neither the Issuer nor the Servicer need reimburse any expense or
indemnify against any loss, liability or expense incurred by the Trustee or Trust Collateral Agent
through the Trustee’s or Trust Collateral Agent’s own willful misconduct, negligence or bad faith.

          (b) The Issuer’s payment obligations to the Trustee pursuant to this Section shall survive the
discharge of this Indenture or the earlier resignation or removal of the Trustee or the Trust
Collateral Agent or the Collateral Agent or the Backup Servicer. When the Trustee, the Trust
Collateral Agent, the Collateral Agent or the Backup Servicer incurs expenses after the occurrence
of a Default specified in Section 5.1(v) or (vi) with respect to the Issuer, the expenses are
intended to constitute expenses of administration under Title 11 of the United States Code or any
other applicable federal or State bankruptcy, insolvency or similar law. Notwithstanding anything
else set forth in this Indenture or the Basic Documents, the Trustee agrees that the obligations of
the Issuer (but not the Servicer) to the Trustee hereunder and under the Basic Documents shall be
recourse to the Trust Estate only and specifically shall not be recourse to the assets of the
Certificateholder or any Noteholder. In addition, the Trustee agrees that its recourse to the
Issuer, the Trust Estate, the Seller and amounts held pursuant to the Spread Account Agreement
shall be limited to the right to receive the distributions referred to in Section 5.7(a) of the
Sale and Servicing Agreement.

          SECTION 6.8 Replacement of Trustee. The Trustee may resign at any time by so
notifying the Issuer and the Security Insurer. The Issuer may and, at the request of the Security
Insurer (unless an Insurer Default shall have occurred and be continuing) shall, remove the
Trustee, if:

     (i) the Trustee fails to comply with Section 6.11;

     (ii) a court having jurisdiction in the premises in respect of the Trustee in an
involuntary case or proceeding under federal or State banking or bankruptcy laws, as now or
hereafter constituted, or any other applicable federal or State bankruptcy, insolvency or
other similar law, shall have entered a decree or order granting relief or appointing a
receiver, liquidator, assignee, custodian, trustee, conservator, sequestrator (or similar
official) for the Trustee or for any substantial part of the Trustee’s property, or ordering
the winding-up or liquidation of the Trustee’s affairs;

     (iii) an involuntary case under the federal bankruptcy laws, as now or hereafter in
effect, or another present or future federal or State bankruptcy, insolvency or similar law
is commenced with respect to the Trustee and such case is not dismissed within 60 days;

     (iv) the Trustee commences a voluntary case under any federal or state banking or
bankruptcy laws, as now or hereafter constituted, or any other applicable federal or State
bankruptcy, insolvency or other similar law, or consents to the appointment of or taking
possession by a receiver, liquidator, assignee, custodian, trustee, conservator,
sequestrator (or other similar official) for the Trustee or for any substantial part of the
Trustee’s property, or makes any assignment for the benefit of creditors or fails

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generally
to pay its debts as such debts become due or takes any action in furtherance of any of the
foregoing; or

          (v) the Trustee otherwise becomes incapable of acting.

          If the Trustee resigns or is removed or if a vacancy exists in the office of Trustee for any
reason (the Trustee in such event being referred to herein as the retiring Trustee), the Issuer
shall promptly appoint a successor Trustee acceptable to the Security Insurer (so long as an
Insurer Default shall not have occurred and be continuing). If the Issuer fails to appoint such a
successor Trustee, the Security Insurer may appoint a successor Trustee.

          A successor Trustee shall deliver a written acceptance of its appointment to the retiring
Trustee, the Security Insurer (provided that no Insurer Default shall have occurred and be
continuing) and to the Issuer. Thereupon the resignation or removal of the retiring Trustee shall
become effective, and the successor Trustee shall have all the rights, powers and duties of the
retiring Trustee under this Indenture subject to satisfaction of the Rating Agency Condition. The
successor Trustee shall mail a notice of its succession to Noteholders. The retiring Trustee shall
promptly transfer all property held by it as Trustee to the successor Trustee.

          If a successor Trustee does not take office within 60 days after the retiring Trustee resigns
or is removed, the retiring Trustee, the Issuer, the Security Insurer or the Holders of a majority
in Outstanding Amount of the Notes may petition any court of competent jurisdiction for the
appointment of a successor Trustee.

          If the Trustee fails to comply with Section 6.11, any Noteholder may petition any court of
competent jurisdiction for the removal of the Trustee and the appointment of a successor Trustee.

          Any resignation or removal of the Trustee and appointment of a successor Trustee pursuant to
any of the provisions of this Section shall not become effective until acceptance of appointment by
the successor Trustee pursuant to Section 6.8 and payment of all fees and expenses owed to the
outgoing Trustee.

          Notwithstanding the replacement of the Trustee pursuant to this Section, the Issuer’s and the
Servicer’s obligations under Section 6.7 shall continue for the benefit of the retiring Trustee.

          SECTION 6.9 Successor Trustee by Merger. If the Trustee consolidates with, merges or
converts into, or transfers all or substantially all its corporate trust business or assets to,
another corporation or banking association, the resulting, surviving or transferee corporation
without any further act shall be the successor Trustee. The Trustee shall provide the Rating
Agencies and the Security Insurer prior written notice of any such transaction.

          In case at the time such successor or successors by merger, conversion or consolidation to the
Trustee shall succeed to the trusts created by this Indenture any of the Notes shall have been
authenticated but not delivered, any such successor to the Trustee may adopt the certificate of
authentication of any predecessor trustee, and deliver such Notes so authenticated; and in case at
that time any of the Notes shall not have been authenticated, any successor to the

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Trustee may
authenticate such Notes either in the name of any predecessor hereunder or in the name of the
successor to the Trustee; and in all such cases such certificates shall have the full force which
it is anywhere in the Notes or in this Indenture provided that the certificate of the Trustee shall
have.

          SECTION 6.10 Appointment of Co-Trustee or Separate Trustee.

          (a) Notwithstanding any other provisions of this Indenture, at any time, for the purpose of
meeting any legal requirement of any jurisdiction in which any part of the Trust Estate may at the
time be located, the Trustee with the consent of the Security Insurer (so long as an Insurer
Default shall not have occurred and be continuing) shall have the power and may execute and deliver
all instruments to appoint one or more Persons to act as a co-trustee or co-trustees, or separate
trustee or separate trustees, of all or any part of the Trust Estate, and to vest in such Person or
Persons, in such capacity and for the benefit of the Noteholders, such title to the Trust Estate,
or any part hereof, and, subject to the other provisions of this Section, such powers, duties,
obligations, rights and trusts as the Trustee may consider necessary or desirable. No co-trustee
or separate trustee hereunder shall be required to meet the terms of eligibility as a successor
trustee under Section 6.11 and no notice to Noteholders of the appointment of any co-trustee or
separate trustee shall be required under Section 6.8 hereof.

          (b) Every separate trustee and co-trustee shall, to the extent permitted by law, be appointed
and act subject to the following provisions and conditions:

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

     (ii) no trustee hereunder shall be personally liable by reason of any act or omission
of any other trustee hereunder, including acts or omissions of predecessor or successor
trustees; and

     (iii) the Trustee may at any time accept the resignation of or remove any separate
trustee or co-trustee.

          (c) Any notice, request or other writing given to the Trustee shall be deemed to have been
given to each of the then separate trustees and co-trustees, as effectively as if given to each of
them. Every instrument appointing any separate trustee or co-trustee shall refer to this Indenture
and the conditions of this Article VI. Each separate trustee and co-trustee, upon its acceptance
of the trusts conferred, shall be vested with the estates or property specified in its instrument
of appointment, either jointly with the Trustee or separately, as may be provided

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therein, subject
to all the provisions of this Indenture, specifically including every provision of this Indenture
relating to the conduct of, affecting the liability of, or affording protection to, the Trustee.
Every such instrument shall be filed with the Trustee.

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

          (e) Any and all amounts relating to the fees and expenses of the co-trustee or separate
trustee will be borne by the Trust Estate.

          SECTION 6.11 Eligibility: Disqualification. The Trustee shall at all times satisfy
the requirements of TIA § 310(a). The Trustee shall have a combined capital and surplus of at
least $50,000,000 as set forth in its most recent published annual report of condition and it shall
have a long term debt rating of BBB-, or an equivalent rating, or better by the Rating Agencies.
The Trustee shall provide copies of such reports to the Security Insurer upon request. The Trustee
shall comply with TIA § 310(b), including the optional provision permitted by the second sentence
of TIA § 310(b)(9); provided, however, that there shall be excluded from the
operation of TIA § 310(b)(1) any indenture or indentures under which other securities of the Issuer
are outstanding if the requirements for such exclusion set forth in TIA § 310(b)(1) are met.

          SECTION 6.12 Preferential Collection of Claims Against Issuer. The Trustee shall
comply with TIA § 311(a), excluding any creditor relationship listed in TIA § 311(b). A Trustee
who has resigned or been removed shall be subject to TIA § 311(a) to the extent indicated.

          SECTION 6.13 Appointment and Powers. Subject to the terms and conditions hereof, each of the Issuer Secured Parties hereby
appoints Wells Fargo Bank, National Association, as the Trust Collateral Agent with respect to the
Collateral, and Wells Fargo Bank, National Association hereby accepts such appointment and agrees
to act as Trust Collateral Agent with respect to the Collateral for the Issuer Secured Parties, to
maintain custody and possession of such Collateral (except as otherwise provided hereunder) and to
perform the other duties of the Trust Collateral Agent in accordance with the provisions of this
Indenture and the other Basic Documents. Each Issuer Secured Party hereby authorizes the Trust
Collateral Agent to take such action on its behalf, and to exercise such rights, remedies, powers
and privileges hereunder, as the Controlling Party may direct and as are specifically authorized to
be exercised by the Trust Collateral Agent by the terms hereof, together with such actions, rights,
remedies, powers and privileges as are reasonably incidental thereto, including, but not limited
to, the execution of any powers of attorney. The Trust Collateral Agent shall act upon and in
compliance with the written instructions of the Controlling Party delivered pursuant to this
Indenture promptly following receipt of such written instructions; provided that the Trust
Collateral Agent shall not act in accordance with any instructions (i) which are not authorized by,
or in violation of the provisions of, this Indenture, (ii) which are in violation of any applicable

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law, rule or regulation or (iii) for which the Trust Collateral Agent has not received reasonable
indemnity. Receipt of such instructions shall not be a condition to the exercise by the Trust
Collateral Agent of its express duties hereunder, except where this Indenture provides that the
Trust Collateral Agent is permitted to act only following and in accordance with such instructions.

          SECTION 6.14 Performance of Duties. The Trust Collateral Agent shall have no duties
or responsibilities except those expressly set forth in this Indenture and the other Basic
Documents to which the Trust Collateral Agent is a party or as directed by the Controlling Party in
accordance with this Indenture. The Trust Collateral Agent shall not be required to take any
discretionary actions hereunder except at the written direction and with the indemnification of the
Controlling Party. The Trust Collateral Agent shall, and hereby agrees that it will, subject to
this Article, perform all of the duties and obligations required of it under the Sale and Servicing
Agreement.

          SECTION 6.15 Limitation on Liability. Neither the Trust Collateral Agent nor any of
its directors, officers or employees shall be liable for any action taken or omitted to be taken by
it or them hereunder, or in connection herewith, except that the Trust Collateral Agent shall be
liable for its negligence, bad faith or willful misconduct; nor shall the Trust Collateral Agent be
responsible for the validity, effectiveness, value, sufficiency or enforceability against the
Issuer of this Indenture or any of the Collateral (or any part thereof). Notwithstanding any term
or provision of this Indenture, the Trust Collateral Agent shall incur no liability to the Issuer
or the Issuer Secured Parties for any action taken or omitted by the Trust Collateral Agent in
connection with the Collateral, except for the negligence, bad faith or willful misconduct on the
part of the Trust Collateral Agent, and, further, shall incur no liability to the Issuer Secured
Parties except for negligence, bad faith or willful misconduct in carrying out its duties to the
Issuer Secured Parties. The Trust Collateral Agent shall be protected and shall incur no liability
to any such party in relying upon the accuracy, acting in reliance upon the contents, and assuming
the genuineness of any notice,
demand, certificate, signature, instrument or other document reasonably believed by the Trust
Collateral Agent to be genuine and to have been duly executed by the appropriate signatory, and
(absent actual knowledge to the contrary by a Responsible Officer of the Trust Collateral Agent)
the Trust Collateral Agent shall not be required to make any independent investigation with respect
thereto. The Trust Collateral Agent shall at all times be free independently to establish to its
reasonable satisfaction, but shall have no duty to independently verify, the existence or
nonexistence of facts that are a condition to the exercise or enforcement of any right or remedy
hereunder or under any of the Basic Documents. The Trust Collateral Agent may consult with
counsel, and shall not be liable for any action taken or omitted to be taken by it hereunder in
good faith and in accordance with the advice of such counsel. The Trust Collateral Agent shall not
be under any obligation to exercise any of the remedial rights or powers vested in it by this
Indenture or to follow any direction from the Controlling Party or risk its own funds or otherwise
incur financial liability in the performance of any of its duties hereunder unless it shall have
received reasonable security or indemnity satisfactory to the Trust Collateral Agent against the
costs, expenses and liabilities which might be incurred by it.

     SECTION 6.16 Reliance Upon Documents. In the absence of negligence, bad faith or
willful misconduct on its part, the Trust Collateral Agent shall be entitled to conclusively

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rely
on any communication, instrument, paper or other document reasonably believed by it to be genuine
and correct and to have been signed or sent by the proper Person or Persons and shall have no
liability in acting, or omitting to act, where such action or omission to act is in reasonable
reliance upon any statement or opinion contained in any such document or instrument.

          SECTION 6.17 Successor Trust Collateral Agent.

          (a) Merger. Any Person into which the Trust Collateral Agent may be converted or
merged, or with which it may be consolidated, or to which it may sell or transfer its trust
business and assets as a whole or substantially as a whole, or any Person resulting from any such
conversion, merger, consolidation, sale or transfer to which the Trust Collateral Agent is a party,
shall (provided it is otherwise qualified to serve as the Trust Collateral Agent hereunder) be and
become a successor Trust Collateral Agent hereunder and be vested with all of the title to and
interest in the Collateral and all of the trusts, powers, discretions, immunities, privileges and
other matters as was its predecessor without the execution or filing of any instrument or any
further act, deed or conveyance on the part of any of the parties hereto, anything herein to the
contrary notwithstanding, except to the extent, if any, that any such action is necessary to
perfect, or continue the perfection of, the security interest of the Issuer Secured Parties in the
Collateral; provided that any such successor shall also be the successor Trustee under Section 6.9.

          (b) Resignation. The Trust Collateral Agent and any successor Trust Collateral Agent
may resign at any time by so notifying the Issuer and the Security Insurer; provided that the Trust
Collateral Agent shall not so resign unless it shall also resign as Trustee hereunder.

          (c) Removal. The Trust Collateral Agent may be removed by the Controlling Party at
any time (and should be removed at any time that the Trustee has been removed), with
or without cause, by an instrument or concurrent instruments in writing delivered to the Trust
Collateral Agent, the other Issuer Secured Party and the Issuer. A temporary successor may be
removed at any time to allow a successor Trust Collateral Agent to be appointed pursuant to
subsection (d) below. Any removal pursuant to the provisions of this subsection (c) shall take
effect only upon the date which is the latest of (i) the effective date of the appointment of a
successor Trust Collateral Agent and the acceptance in writing by such successor Trust Collateral
Agent of such appointment and of its obligation to perform its duties hereunder in accordance with
the provisions hereof, and (ii) receipt by the Controlling Party of an Opinion of Counsel to the
effect described in Section 3.6.

          (d) Acceptance by Successor. The Controlling Party shall have the sole right to
appoint each successor Trust Collateral Agent. Every temporary or permanent successor Trust
Collateral Agent appointed hereunder shall execute, acknowledge and deliver to its predecessor and
to the Trustee, each Issuer Secured Party and the Issuer an instrument in writing accepting such
appointment hereunder and the relevant predecessor shall execute, acknowledge and deliver such
other documents and instruments as will effectuate the delivery of all Collateral to the successor
Trust Collateral Agent, whereupon such successor, without any further act, deed or conveyance,
shall become fully vested with all the estates, properties, rights, powers, duties and obligations
of its predecessor. Such predecessor shall, nevertheless, on the written request of

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either Issuer
Secured Party or the Issuer, execute and deliver an instrument transferring to such successor all
the estates, properties, rights and powers of such predecessor hereunder. In the event that any
instrument in writing from the Issuer or an Issuer Secured Party is reasonably required by a
successor Trust Collateral Agent to more fully and certainly vest in such successor the estates,
properties, rights, powers, duties and obligations vested or intended to be vested hereunder in the
Trust Collateral Agent, any and all such written instruments shall, at the request of the temporary
or permanent successor Trust Collateral Agent, be forthwith executed, acknowledged and delivered by
the Trustee or the Issuer, as the case may be. The designation of any successor Trust Collateral
Agent and the instrument or instruments removing any Trust Collateral Agent and appointing a
successor hereunder, together with all other instruments provided for herein, shall be maintained
with the records relating to the Collateral and, to the extent required by applicable law, filed or
recorded by the successor Trust Collateral Agent in each place where such filing or recording is
necessary to effect the transfer of the Collateral to the successor Trust Collateral Agent or to
protect or continue the perfection of the security interests granted hereunder.

          SECTION 6.18 Compensation. The Trust Collateral Agent shall not be entitled to any
compensation for the performance of its duties hereunder other than the compensation it is entitled
to receive in its capacity as Trustee.

          SECTION 6.19 Representations and Warranties of the Trust Collateral Agent and the
Issuer. (A) The Trust Collateral Agent represents and warrants to the Issuer and to each Issuer
Secured Party as follows:

          (a) Due Organization. The Trust Collateral Agent is a national banking association
and is duly authorized and licensed under applicable law to conduct its business as presently
conducted.

          (b) Corporate Power. The Trust Collateral Agent has all requisite right, power and
authority to execute and deliver this Indenture and to perform all of its duties as Trust
Collateral Agent hereunder.

          (c) Due Authorization. The execution and delivery by the Trust Collateral Agent of
this Indenture and the other Transaction Documents to which it is a party, and the performance by
the Trust Collateral Agent of its duties hereunder and thereunder, have been duly authorized by all
necessary corporate proceedings and no further approvals or filings, including any governmental
approvals, are required for the valid execution and delivery by the Trust Collateral Agent, or the
performance by the Trust Collateral Agent, of this Indenture and such other Basic Documents.

          (d) Valid and Binding Indenture. The Trust Collateral Agent has duly executed and
delivered this Indenture and each other Basic Document to which it is a party, and each of this
Indenture and each such other Basic Document constitutes the legal, valid and binding obligation of
the Trust Collateral Agent, enforceable against the Trust Collateral Agent in accordance with its
terms, except as (i) such enforceability may be limited by bankruptcy, insolvency, reorganization
and similar laws relating to or affecting the enforcement of creditors’

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rights generally and (ii)
the availability of equitable remedies may be limited by equitable principles of general
applicability.

          (e) No Conflicts. The execution and delivery of each Basic Document to which it is a
party by the Trust Collateral Agent and the performance by the Trust Collateral Agent of its
obligations thereunder, in its capacity as Trust Collateral Agent or otherwise, do not conflict
with or result in any violation of (i) any law or regulation of the United States of America
governing the banking or trust powers of the Trust Collateral Agent or (ii) the articles of
incorporation and by-laws of the Trust Collateral Agent.

          (f) No Actions. To the best of the Trust Collateral Agent’s knowledge, there are no
actions, proceedings or investigations known to the Trust Collateral Agent, either pending or
threatened in writing, before any court, regulatory body, administrative agency or other tribunal
or governmental instrumentality which would, if adversely determined, affect in any material
respect the consummation, validity or enforceability against the Trust Collateral Agent, in its
capacity as Trust Collateral Agent or otherwise, of any Basic Document.

     (B) The Issuer hereby represents and warrants that each of the representations and warranties
set forth on the Schedule of Representations attached hereto as Schedule A is true and correct.
Such representations and warranties speak as of the execution and delivery of this Indenture and as
of the Closing Date, but shall survive the pledge of the Receivables to the Trust Collateral Agent
and shall not be waived.

          SECTION 6.20 Waiver of Setoffs. The Trust Collateral Agent hereby expressly waives any and all rights of setoff that the
Trust Collateral Agent may otherwise at any time have under applicable law with respect to any
Trust Account and agrees that amounts in the Trust Accounts shall at all times be held and applied
solely in accordance with the provisions hereof and the Sale and Servicing Agreement.

          SECTION 6.21 Control by the Controlling Party. The Trust Collateral Agent shall
comply with notices and instructions given by the Issuer only if accompanied by the written consent
of the Controlling Party, except that if any Event of Default shall have occurred and be
continuing, the Trust Collateral Agent shall act upon and comply with notices and instructions
given by the Controlling Party alone in the place and stead of the Issuer.

ARTICLE VII

Noteholders’ Lists and Reports

          SECTION 7.1 Issuer To Furnish To Trustee Names and Addresses of Noteholders. The
Issuer will furnish or cause to be furnished to the Trustee (a) not more than five days after the
earlier of (i) each Record Date and (ii) three months after the last Record Date, a list, in such
form as the Trustee may reasonably require, of the names and addresses of the Holders as of such
Record Date, (b) at such other times as the Trustee may request in writing, within 30 days after
receipt by the Issuer of any such request, a list of similar form and content as of a date not more
than 10 days prior to the time such list is furnished; provided, however, that so
long as the Trustee is the Note Registrar, no such list shall be required to be furnished. The

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Trustee or, if the Trustee is not the Note Registrar, the Issuer shall furnish to the Security
Insurer in writing on an annual basis on each June 30 and at such other times as the Security
Insurer may request a copy of the list.

          SECTION 7.2 Preservation of Information; Communications to Noteholders.

          (a) The Trustee shall preserve, in as current a form as is reasonably practicable, the names
and addresses of the Holders contained in the most recent list furnished to the Trustee as provided
in Section 7.1 and the names and addresses of Holders received by the Trustee in its capacity as
Note Registrar. The Trustee may destroy any list furnished to it as provided in such Section 7.1
upon receipt of a new list so furnished.

          (b) Noteholders may communicate pursuant to TIA § 312(b) with other Noteholders with respect
to their rights under this Indenture or under the Notes.

          (c) The Issuer, the Trustee and the Note Registrar shall have the protection of TIA § 312(c).

          SECTION 7.3 Reports by Issuer.

          (a) The Issuer shall:

     (i) file with the Trustee, within 15 days after the Issuer is required to file the same
with the Commission, copies of the annual reports and of the information, documents and
other reports (or copies of such portions of any of the foregoing as the Commission may from
time to time by rules and regulations prescribe) which the Issuer may be required to file
with the Commission pursuant to Section 13 or 15(d) of the Exchange Act;

     (ii) file with the Trustee and the Commission in accordance with rules and regulations
prescribed from time to time by the Commission such additional information, documents and
reports with respect to compliance by the Issuer with the conditions and covenants of this
Indenture as may be required from time to time by such rules and regulations; and

     (iii) supply to the Trustee (and the Trustee shall transmit by mail to all Noteholders
described in TIA § 313(c)) such summaries of any information, documents and reports required
to be filed by the Issuer pursuant to clauses (i) and (ii) of this Section 7.3(a) as may be
required by rules and regulations prescribed from time to time by the Commission.

          (b) Unless the Issuer otherwise determines, the fiscal year of the Issuer shall end on
December 31 of each year.

          SECTION 7.4 Reports by Trustee. If required by TIA § 313(a), within 60 days after
each May 31, beginning with May 31, 2005, the Trustee shall mail to each Noteholder as required by
TIA § 313(c) a brief report dated as of such date that complies with TIA § 313(a). The Trustee
also shall comply with TIA § 313(b).

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          A copy of each report at the time of its mailing to Noteholders shall be filed by the Trustee
with the Commission and each stock exchange, if any, on which the Notes are listed. The Issuer
shall notify the Trustee if and when the Notes are listed on any stock exchange.

ARTICLE VIII

Accounts, Disbursements and Releases

          SECTION 8.1 Collection of Money. Except as otherwise expressly provided herein, the
Trustee may demand payment or delivery of, and shall receive and collect, directly and without
intervention or assistance of any fiscal agent or other intermediary, all money and other property
payable to or receivable by the Trust Collateral Agent pursuant to this Indenture and the Sale and
Servicing Agreement. The Trustee shall apply all such money received by it, or cause the Trust
Collateral Agent to apply all money received by it as provided in this Indenture and the Sale and
Servicing Agreement. Except as otherwise expressly provided in this Indenture or in the Sale and
Servicing Agreement, if any default occurs in the making of any payment or performance under any
agreement or instrument that is part of the Trust Estate, the Trustee may take such action as may
be appropriate to enforce such payment or performance, including the institution and prosecution of
appropriate proceedings. Any such action shall be without prejudice to any right to claim a
Default or Event of Default under this Indenture and any right to proceed thereafter as provided in
Article V.

          SECTION 8.2 Release of Trust Estate.

          (a) Subject to the payment of its fees and expenses and other amounts pursuant to Section 6.7,
the Trust Collateral Agent may, and when required by the provisions of this Indenture shall,
execute instruments to release property from the lien of this Indenture, in a manner and under
circumstances that are not inconsistent with the provisions of this Indenture. No party relying
upon an instrument executed by the Trust Collateral Agent as provided in this Article VIII shall be
bound to ascertain the Trust Collateral Agent’s authority, inquire into the satisfaction of any
conditions precedent or see to the application of any moneys.

          (b) The Trust Collateral Agent shall, at such time as there are no Notes outstanding and all
sums due the Trustee pursuant to Section 6.7 and all amounts due to the Security Insurer under the
Basic Documents have been paid, release any remaining portion of the Trust Estate that secured the
Notes from the lien of this Indenture and release to the Issuer or any other Person entitled
thereto any funds then on deposit in the Trust Accounts. The Trustee shall release property from
the lien of this Indenture pursuant to this Section 8.2(b) only upon receipt of an Issuer Request
accompanied by an Officer’s Certificate, an Opinion of Counsel and (if required by the TIA)
Independent Certificates in accordance with TIA §§ 314(c) and 314(d)(1) meeting the applicable
requirements of Section 11.1.

          SECTION 8.3 Opinion of Counsel. The Trust Collateral Agent shall receive at least
seven days’ notice when requested by the Issuer to take any action pursuant to Section 8.2(a),
accompanied by copies of any instruments involved, and the Trustee shall also require as a
condition to such action, an Opinion of Counsel in form and substance satisfactory to the Trustee,
stating the legal effect of any such action, outlining the steps required to complete the

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same, and
concluding that all conditions precedent to the taking of such action have been complied with and
such action will not materially and adversely impair the security for the Notes or the rights of
the Noteholders in contravention of the provisions of this Indenture; provided,
however, that such Opinion of Counsel shall not be required to express an opinion as to the
fair value of the Trust Estate. Counsel rendering any such opinion may rely, without independent
investigation, on the accuracy and validity of any certificate or other instrument delivered to the
Trustee in connection with any such action.

ARTICLE IX

Supplemental Indentures

          SECTION 9.1 Supplemental Indentures Without Consent of Noteholders.

          (a) Without the consent of the Holders of any Notes but with the consent of the Security
Insurer (unless an Insurer Default shall have occurred and be continuing) and with prior notice to
the Rating Agencies by the Issuer, as evidenced to the Trustee, the Issuer and the Trustee, when
authorized by an Issuer Order, at any time and from time to time, may enter into one or more
indentures supplemental hereto (which shall conform to the provisions of the Trust Indenture Act as
in force at the date of the execution thereof), in form satisfactory to the Trustee, for any of the
following purposes:

     (i) to correct or amplify the description of any property at any time subject to the
lien of this Indenture, or better to assure, convey and confirm unto the Trust Collateral
Agent any property subject or required to be subjected to the lien of this Indenture, or to
subject to the lien of this Indenture additional property;

     (ii) to evidence the succession, in compliance with the applicable provisions hereof,
of another person to the Issuer, and the assumption by any such successor of the covenants
of the Issuer herein and in the Notes contained;

     (iii) to add to the covenants of the Issuer, for the benefit of the Holders of the
Notes, or to surrender any right or power herein conferred upon the Issuer;

     (iv) to convey, transfer, assign, mortgage or pledge any property to or with the Trust
Collateral Agent;

     (v) to cure any ambiguity, to correct or supplement any provision herein or in any
supplemental indenture which may be inconsistent with any other provision herein or in any
supplemental indenture or to make any other provisions with respect to matters or questions
arising under this Indenture or in any supplemental indenture; provided that such
action shall not adversely affect the interests of the Holders of the Notes;

     (vi) to evidence and provide for the acceptance of the appointment hereunder by a
successor trustee with respect to the Notes and to add to or change any of the provisions of
this Indenture as shall be necessary to facilitate the administration of the trusts
hereunder by more than one trustee, pursuant to the requirements of Article VI; or

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     (vii) to modify, eliminate or add to the provisions of this Indenture to such extent as
shall be necessary to effect the qualification of this Indenture under the TIA or under any
similar federal statute hereafter enacted and to add to this Indenture such other provisions
as may be expressly required by the TIA.

          The Trustee is hereby authorized to join in the execution of any such supplemental indenture
and to make any further appropriate agreements and stipulations that may be therein contained.

          (b) The Issuer and the Trustee, when authorized by an Issuer Order, may, also without the
consent of any of the Holders of the Notes but with prior notice to the Rating Agencies by the
Issuer and with the prior written consent of the Security Insurer (unless an Insurer Default shall
have occurred and be continuing), as evidenced to the Trustee, enter into an indenture or
indentures supplemental hereto for the purpose of adding any provisions to, or changing in any
manner or eliminating any of the provisions of, this Indenture or of modifying in any manner the
rights of the Holders of the Notes under this Indenture; provided, however, that
such action shall not, as evidenced by an Opinion of Counsel, adversely affect in any material
respect (i) the interests of any Noteholder or, (ii) unless the prior written consent of the Swap
Provider has been provided, the Swap Provider.

          (c) Notwithstanding the foregoing, if an Insurer Default has occurred and is continuing, no
amendment under Section 9.1 or 9.2 shall materially adversely affect the Security Insurer without
the Security Insurer’s prior consent.

          SECTION 9.2 Supplemental Indentures with Consent of Noteholders. The Issuer and the
Trustee, when authorized by an Issuer Order, also may, with prior notice to the Rating Agencies,
with the consent of the Security Insurer (unless an Insurer Default shall have occurred and be
continuing) and with the consent of the Holders of not less than a majority of the outstanding
Amount of the Notes, by Act of such Holders delivered to the Issuer and the Trustee, enter into an
indenture or indentures supplemental hereto for the purpose of adding any provisions to, or
changing in any manner or eliminating any of the provisions of, this Indenture or of modifying in
any manner the rights of the Holders of the Notes under this Indenture; provided,
however, that the consent of the Swap Provider shall also be required to enter into any
such supplemental indenture if the terms thereof adversely affect in any material respect the
interests of the Swap Provider; provided further, however, that, subject
to the express rights of the Security Insurer under the Basic Documents, no such supplemental
indenture shall, without the consent of the Holder of each Outstanding Note affected thereby:

     (i) change the date of payment of any installment of principal of or interest on any
Note, or reduce the principal amount thereof, the interest rate thereon or the Redemption
Price with respect thereto, change the provision of this Indenture relating to the
application of collections on, or the proceeds of the sale of, the Trust Estate to payment
of principal of or interest on the Notes, or change any place of payment where, or the coin
or currency in which, any Note or the interest thereon is payable;

     (ii) impair the right to institute suit for the enforcement of the provisions of this
Indenture requiring the application of funds available therefor, as provided in Article

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V,
to the payment of any such amount due on the Notes on or after the respective due dates
thereof (or, in the case of redemption, on or after the Redemption Date);

     (iii) reduce the percentage of the Outstanding Amount of the Notes, the consent of the
Holders of which is required for any such supplemental indenture, or the consent of the
Holders of which is required for any waiver of compliance with certain provisions of this
Indenture or certain defaults hereunder and their consequences provided for in this
Indenture;

     (iv) modify or alter the provisions of the proviso to the definition of the term
“Outstanding”;

     (v) reduce the percentage of the Outstanding Amount of the Notes required to direct the
Trustee to direct the Issuer to sell or liquidate the Trust Estate pursuant to Section 5.4;

     (vi) modify any provision of this Section except to increase any percentage specified
herein or to provide that certain additional provisions of this Indenture or the Basic
Documents cannot be modified or waived without the consent of the Holder of each Outstanding
Note affected thereby;

     (vii) modify any of the provisions of this Indenture in such manner as to affect the
calculation of the amount of any payment of interest or principal due on any Note on any
Distribution Date (including the calculation of any of the individual components of such
calculation) or to affect the rights of the Noteholders to the benefit of any provisions for
the mandatory redemption of the Notes contained herein; or

     (viii) permit the creation of any lien ranking prior to or on a parity with the lien of
this Indenture with respect to any part of the Trust Estate or, except as otherwise
permitted or contemplated herein or in any of the Basic Documents, terminate the lien of
this Indenture on any property at any time subject hereto or deprive the Holder of any Note
of the security provided by the lien of this Indenture.

          The Trustee may determine whether or not any Notes would be affected by any supplemental
indenture and any such determination shall be conclusive upon the Holders of all Notes, whether
theretofore or thereafter authenticated and delivered hereunder. The Trustee shall not be liable
for any such determination made in good faith.

          It shall not be necessary for any Act of Noteholders under this Section to approve the
particular form of any proposed supplemental indenture, but it shall be sufficient if such Act
shall approve the substance thereof.

          Promptly after the execution by the Issuer and the Trustee of any supplemental indenture
pursuant to this Section, the Trustee shall mail to the Holders of the Notes to which such
amendment or supplemental indenture relates a notice setting forth in general terms the substance
of such supplemental indenture. Any failure of the Trustee to mail such notice, or any defect
therein, shall not, however, in any way impair or affect the validity of any such supplemental
indenture.

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          SECTION 9.3 Execution of Supplemental Indentures. In executing, or permitting the
additional trusts created by, any supplemental indenture permitted by this Article IX or the
amendments or modifications thereby of the trusts created by this Indenture, the Trustee shall be
entitled to receive and shall be fully protected in relying upon, an Opinion of Counsel stating
that the execution of such supplemental indenture is authorized or permitted by this Indenture.
The Trustee may, but shall not be obligated to, enter
into any such supplemental indenture that affects the Trustee’s own rights, duties,
liabilities or immunities under this Indenture or otherwise.

          SECTION 9.4 Effect of Supplemental Indenture. Upon the execution of any supplemental
indenture pursuant to the provisions hereof, this Indenture shall be and be deemed to be modified
and amended in accordance therewith with respect to the Notes affected thereby, and the respective
rights, limitations of rights, obligations, duties, liabilities and immunities under this Indenture
of the Trustee, the Issuer and the Holders of the Notes shall thereafter be determined, exercised
and enforced hereunder subject in all respects to such modifications and amendments, and all the
terms and conditions of any such supplemental indenture shall be and be deemed to be part of the
terms and conditions of this Indenture for any and all purposes.

          SECTION 9.5 Conformity With Trust Indenture Act. Every amendment of this Indenture
and every supplemental indenture executed pursuant to this Article IX shall conform to the
requirements of the Trust Indenture Act as then in effect so long as this Indenture shall then be
qualified under the Trust Indenture Act.

          SECTION 9.6 Reference in Notes to Supplemental Indentures. Notes authenticated and
delivered after the execution of any supplemental indenture pursuant to this Article IX may, and if
required by the Trustee shall, bear a notation in form approved by the Trustee as to any matter
provided for in such supplemental indenture. If the Issuer or the Trustee shall so determine, new
Notes so modified as to conform, in the opinion of the Trustee and the Issuer, to any such
supplemental indenture may be prepared and executed by the Issuer and authenticated and delivered
by the Trustee in exchange for Outstanding Notes.

ARTICLE X

Redemption of Notes

          SECTION 10.1 Redemption.

          (a) The Notes are subject to redemption in whole, but not in part, at the direction of the
Servicer or the Seller pursuant to Section 10.1(a) of the Sale and Servicing Agreement, on any
Distribution Date on which the Servicer or Seller exercises its option to purchase the Trust Estate
pursuant to said Section 10.1(a) for a purchase price equal to the Redemption Price;
provided, however, that the Issuer has available funds sufficient to pay the
Redemption Price and all amounts due and payable to the Security Insurer under the Insurance
Agreement. The Servicer or the Issuer shall furnish the Security Insurer and the Rating Agencies
notice of such redemption. If the Notes are to be redeemed pursuant to this Section 10.1(a), the
Servicer or the Issuer shall furnish notice of such election to the Trustee not later than 25 days
prior to the Redemption Date and the Issuer shall deposit with the Trustee in the Note

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Distribution
Account the Redemption Price of the Notes to be redeemed whereupon all such Notes shall be due and
payable on the Redemption Date upon the furnishing of a notice complying with Section 10.2 to each
Holder of Notes.

          (b) In the event that on the Distribution Date on which the Funding Period ends (or on the
Distribution Date on or immediately following the last day of the Funding Period, if the Funding
Period does not end on a Distribution Date), the portion of the Pre-Funded Amount, if any,
remaining after giving effect to the purchase of all Subsequent Receivables, including any such
purchase on such Redemption Date, will be used to redeem the Notes in part, on a pro rata basis, in
an aggregate principal amount equal to the Class A-1 Prepayment Amount, the Class A-2 Prepayment
Amount, the Class A-3 Prepayment Amount and the Class A-4 Prepayment Amount, provided, that
if such amount is $100,000 or less, it will be applied exclusively to reduce the outstanding
principal balance of the class of Notes then entitled to receive distributions of principal.

          (c) In the event that the assets of the Trust are distributed pursuant to Section 8.1 of the
Trust Agreement, all amounts on deposit in the Note Distribution Account shall be paid to the
Noteholders up to the Outstanding Amount of the Notes and all accrued and unpaid interest thereon.
If amounts are to be paid to Noteholders pursuant to this Section 10.1(b), the Servicer or the
Issuer shall, to the extent practicable, furnish notice of such event to the Trustee not later than
45 days prior to the Redemption Date, whereupon all such amounts shall be payable on the Redemption
Date.

          SECTION 10.2 Form of Redemption.

          (a) Notice of redemption under Section 10.1(a) shall be given by the Trustee by facsimile or
by first-class mail, postage prepaid, transmitted or mailed prior to the applicable Redemption Date
to each Holder of Notes, as of the close of business on the Record Date preceding the applicable
Redemption Date, at such Holder’s address appearing in the Note Register.

          All notices of redemption shall state:

     (i) the Redemption Date;

     (ii) the Redemption Price;

     (iii) that the Record Date otherwise applicable to such Redemption Date is not
applicable and that payments shall be made only upon presentation and surrender of such
Notes and the place where such Notes are to be surrendered for payment of the Redemption
Price (which shall be the office or agency of the Issuer to be maintained as provided in
Section 3.2); and

     (iv) that interest on the Notes shall cease to accrue on the Redemption Date.

          Notice of redemption of the Notes shall be given by the Trustee in the name and at the expense
of the Issuer. Failure to give notice of redemption, or any defect therein, to any Holder of any
Note shall not impair or affect the validity of the redemption of any other Note.

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          (b) Prior notice of redemption under Section 10.1(b) is not required to be given to
Noteholders.

          SECTION 10.3 Notes Payable on Redemption Date. The Notes to be redeemed shall,
following notice of redemption, as required by Section 10.2 (in the case of redemption pursuant to
Section 10.1(a)), on the Redemption Date, become due and payable at the Redemption Price, and
(unless the Issuer shall default in the payment of the Redemption Price) no interest shall accrue
on the Redemption Price for any period after the date to which accrued interest is calculated for
purposes of calculating the Redemption Price.

ARTICLE XI

Miscellaneous

          SECTION 11.1 Compliance Certificates and Opinions, etc. Upon any application or request by
the Issuer to the Trustee or the Trust Collateral Agent to take any action under any provision of
this Indenture, the Issuer shall furnish to the Trustee or the Trust Collateral Agent, as the case
may be, and to the Security Insurer (i) an Officer’s Certificate stating that all conditions
precedent, if any, provided for in this Indenture relating to the proposed action have been
complied with, (ii) an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent, if any, have been complied with and (iii) (if required by the TIA) an
Independent Certificate from a firm of certified public accountants meeting the applicable
requirements of this Section, except that, in the case of any such application or request as to
which the furnishing of such documents is specifically required by any provision of this Indenture,
no additional certificate or opinion need be furnished.

          (a) Every certificate or opinion with respect to compliance with a condition or covenant
provided for in this Indenture shall include:

     (i) a statement that each signatory of such certificate or opinion has read or has
caused to be read such covenant or condition and the definitions herein relating thereto;

     (ii) a brief statement as to the nature and scope of the examination or investigation
upon which the statements or opinions contained in such certificate or opinion are based;

     (iii) a statement that, in the opinion of each such signatory, such signatory has made
such examination or investigation as is necessary to enable such signatory to express an
informed opinion as to whether or not such covenant or condition has been complied with; and

     (iv) a statement as to whether, in the opinion of each such signatory such condition or
covenant has been complied with.

          (b) (i)(i) Prior to the deposit of any Collateral or other property or securities with the
Trust Collateral Agent that is to be made the basis for the release of any property or securities
subject to the lien of this Indenture, the Issuer shall, in addition to any obligation

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imposed in
Section 11.1(a) or elsewhere in this Indenture, furnish to the Trust Collateral Agent and the
Security Insurer an Officer’s Certificate certifying or stating the opinion of each person signing
such certificate as to the fair value (within 90 days of such deposit) to the Issuer of the
Collateral or other property or securities to be so deposited.

     (ii) Whenever the Issuer is required to furnish to the Trust Collateral Agent and the
Security Insurer an Officer’s Certificate certifying or stating the opinion of any signer
thereof as to the matters described in clause (i) above, the Issuer shall also deliver to
the Trust Collateral Agent and the Security Insurer an Independent Certificate as to the
same matters, if the fair value to the Issuer of the securities to be so deposited and of
all other such securities made the basis of any such withdrawal or release since the
commencement of the then-current fiscal year of the Issuer, as set forth in the certificates
delivered pursuant to clause (i) above and this clause (ii), is 10% or more of the
Outstanding Amount of the Notes, but such a certificate need not be furnished with respect
to any securities so deposited, if the fair value thereof to the Issuer as set forth in the
related Officer’s Certificate is less than $25,000 or less than 1% percent of the
Outstanding Amount of the Notes.

     (iii) Other than with respect to the release of any Purchased Receivables, Sold
Receivables or Liquidated Receivables, whenever any property or securities are to be
released from the lien of this Indenture, the Issuer shall also furnish to the Trust
Collateral Agent and the Security Insurer an Officer’s Certificate certifying or stating the
opinion of each person signing such certificate as to the fair value (within 90 days of such
release) of the property or securities proposed to be released and stating that in the
opinion of such person the proposed release will not impair the security under this
Indenture in contravention of the provisions hereof.

     (iv) Whenever the Issuer is required to furnish to the Trustee and the Security Insurer
an Officer’s Certificate certifying or stating the opinion of any signer thereof as to the
matters described in clause (iii) above, the Issuer shall also furnish to the Trust
Collateral Agent and the Security Insurer an Independent Certificate as to the same matters
if the fair value of the property or securities and of all other property other than
Purchased Receivables, Sold Receivables and Defaulted Receivables, or securities released
from the lien of this Indenture since the commencement of the then current calendar year, as
set forth in the certificates required by clause (iii) above and this clause (iv), equals
10% or more of the Outstanding Amount of the Notes, but such certificate need not be
furnished in the case of any release of property or securities if the fair value thereof as
set forth in the related Officer’s Certificate is less than $25,000 or less than 1 percent
of the then Outstanding Amount of the Notes.

     (v) Notwithstanding Section 2.9 or any other provision of this Section, the Issuer may
(A) collect, liquidate, sell or otherwise dispose of Receivables as and to the extent
permitted or required by the Basic Documents and (B) make cash payments out of the Trust
Accounts as and to the extent permitted or required by the Basic Documents.

          SECTION 11.2 Form of Documents Delivered to Trustee. In any case where several
matters are required to be certified by, or covered by an opinion of, any specified Person,

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it is
not necessary that all such matters be certified by, or covered by the opinion of, only one such
Person, or that they be so certified or covered by only one document, but one such Person may
certify or give an opinion with respect to some matters and one or more other such Persons as to
other matters, and any such Person may certify or give an opinion as to such matters in one or
several documents.

          Any certificate or opinion of an Authorized Officer of the Issuer may be based, insofar as it
relates to legal matters, upon a certificate or opinion of, or representations by, counsel, unless
such officer knows, or in the exercise of reasonable care should know, that the certificate or
opinion or representations with respect to the matters upon which his or her certificate or opinion
is based are erroneous. Any such certificate of an Authorized Officer or Opinion of Counsel may be
based, insofar as it relates to factual matters, upon a certificate or opinion of, or
representations by, an officer or officers of the Servicer, the Seller or the Issuer, stating that
the information with respect to such factual matters is in the possession of the Servicer, the
Seller or the Issuer, unless such counsel knows, or in the exercise of reasonable care should know,
that the certificate or opinion or representations with respect to such matters are erroneous.

          Where any Person is required to make, give or execute two or more applications, requests,
consents, certificates, statements, opinions or other instruments under this Indenture, they may,
but need not, be consolidated and form one instrument.

          Whenever in this Indenture, in connection with any application or certificate or report to the
Trustee, it is provided that the Issuer shall deliver any document as a condition of the granting
of such application, or as evidence of the Issuer’s compliance with any term hereof, it is intended
that the truth and accuracy, at the time of the granting of such application or at the effective
date of such certificate or report (as the case may be), of the facts and opinions stated in such
document shall in such case be conditions precedent to the right of the Issuer to have such
application granted or to the sufficiency of such certificate or report. The foregoing shall not,
however, be construed to affect the Trustee’s right to rely upon the truth and accuracy of any
statement or opinion contained in any such document as provided in Article VI.

          SECTION 11.3 Acts of Noteholders.

          (a) Any request, demand, authorization, direction, notice, consent, waiver or other action
provided by this Indenture to be given or taken by Noteholders may be embodied in and evidenced by
one or more instruments of substantially similar tenor signed by such Noteholders in person or by
agents duly appointed in writing; and except as herein otherwise expressly provided such action
shall become effective when such instrument or instruments are delivered to the Trustee, and, where
it is hereby expressly required, to the Issuer. Such instrument or instruments (and the action
embodied therein and evidenced thereby) are herein sometimes referred to as the “Act” of
the Noteholders signing such instrument or instruments. Proof of execution of any such instrument
or of a writing appointing any such agent shall be sufficient for any purpose of this Indenture and
(subject to Section 6.1) conclusive in favor of the
Trustee and the Issuer, if made in the manner provided in this Section. In the event the
Trustee shall receive conflicting or inconsistent requests and indemnity from two or more groups of
Noteholders, each representing less than a majority of the Outstanding Amount of the Notes, the

62

 

Trustee in its sole discretion may determine what action, if any, shall be taken, notwithstanding
any other provisions of this Indenture.

          (b) The fact and date of the execution by any person of any such instrument or writing may be
proved in any customary manner of the Trustee.

          (c) The ownership of Notes shall be proved by the Note Register.

          (d) Any request, demand, authorization, direction, notice, consent, waiver or other action by
the Holder of any Notes shall bind the Holder of every Note issued upon the registration thereof or
in exchange therefor or in lieu thereof, in respect of anything done, omitted or suffered to be
done by the Trustee or the Issuer in reliance thereon, whether or not notation of such action is
made upon such Note.

          SECTION 11.4 Notices, etc., to Trustee, Issuer and Rating Agencies. Any request,
demand, authorization, direction, notice, consent, waiver or Act of Noteholders or other documents
provided or permitted by this Indenture to be made upon, given or furnished to or filed with:

          (a) The Trustee by any Noteholder or by the Issuer shall be sufficient for every purpose
hereunder if personally delivered, delivered by overnight courier or mailed certified mail, return
receipt requested and shall be deemed to have been duly given upon receipt to the Trustee at its
Corporate Trust Office, or

          (b) The Issuer by the Trustee or by any Noteholder shall be sufficient for every purpose
hereunder if personally delivered, delivered by overnight courier or mailed certified mail, return
receipt requested and shall deemed to have been duly given upon receipt to the Issuer addressed to:
AmeriCredit Automobile Receivables Trust 2005-B-M, in care of Wilmington Trust Company, Rodney
Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust
Administration, or at any other address previously furnished in writing to the Trustee by Issuer.
The Issuer shall promptly transmit any notice received by it from the Noteholders to the Trustee.

          (c) The Security Insurer by the Issuer or the Trustee shall be sufficient for any purpose
hereunder if in writing and mailed by registered mail or personally delivered or telexed or
telecopied to the recipient as follows:

	 	 	 	 	 
	

	 	To the Security Insurer:
	 	MBIA Insurance Corporation
	

	 	 	 	113 King Street
	

	 	 	 	Armonk, New York 10504
	

	 	 	 	Attention: Insured Portfolio Management–Structured

Finance (AmeriCredit 2005-B-M)
	 
	

	 	 	 	Facsimile No.: (914) 765-3810
	

	 	 	 	Confirmation: (914) 765-3781

(In each case in which notice or other communication to the Security Insurer refers to an Event

63

 

of
Default, a claim on the Note Policy or with respect to which failure on the part of the Security
Insurer to respond shall be deemed to constitute consent or acceptance, then a copy of such notice
or other communication should also be sent to the attention of the General Counsel “URGENT
MATERIAL ENCLOSED.”)

          Notices required to be given to the Rating Agencies by the Issuer, the Trustee or the Owner
Trustee shall be in writing, personally delivered, electronically delivered, delivered by overnight
courier or mailed certified mail, return receipt requested to (i) in the case of Moody’s, at the
following address: Moody’s Investors Service, 99 Church Street, New York, New York 10007, (ii) in
the case of Standard & Poor’s, via electronic delivery to
Servicer_reports@sandp.com; for any
information not available in electronic format, send hard copies to: Standard & Poor’s Ratings
Services, 55 Water Street, 41st floor, New York, New York 10041, Attention: ABS Surveillance Group
and (iii) in the case of Fitch, at the following address: Fitch Inc., One State Street Plaza, New
York, New York 10004; or as to each of the foregoing, at such other address as shall be designated
by written notice to the other parties.

          SECTION 11.5 Notices to Noteholders; Waiver. Where this Indenture provides for notice
to Noteholders of any event, such notice shall be sufficiently given (unless otherwise herein
expressly provided) if in writing and mailed, first-class, postage prepaid to each Noteholder
affected by such event, at his address as it appears on the Note Register, not later than the
latest date, and not earlier than the earliest date, prescribed for the giving of such notice. In
any case where notice to Noteholders is given by mail, neither the failure to mail such notice nor
any defect in any notice so mailed to any particular Noteholder shall affect the sufficiency of
such notice with respect to other Noteholders, and any notice that is mailed in the manner here in
provided shall conclusively be presumed to have been duly given.

          Where this Indenture provides for notice in any manner, such notice may be waived in writing
by any Person entitled to receive such notice, either before or after the event, and such waiver
shall be the equivalent of such notice. Waivers of notice by Noteholders shall be filed with the
Trustee but such filing shall not be a condition precedent to the validity of any action taken in
reliance upon such a waiver.

          In case, by reason of the suspension of regular mail service as a result of a strike, work
stoppage or similar activity, it shall be impractical to mail notice of any event to Noteholders
when such notice is required to be given pursuant to any provision of this Indenture, then any
manner of giving such notice as shall be satisfactory to the Trustee shall be deemed to be a
sufficient giving of such notice.

          Where this Indenture provides for notice to the Rating Agencies, failure to give such notice
shall not affect any other rights or obligations created hereunder, and shall not under any
circumstance constitute a Default or Event of Default.

          SECTION 11.6 [Reserved]

          SECTION 11.7 Conflict with Trust Indenture Act. If any provision hereof limits,
qualifies or conflicts with another provision hereof that is required to be included in this

64

 

Indenture by any of the provisions of the Trust Indenture Act, such required provision shall
control.

          The provisions of TIA §§ 310 through 317 that impose duties on any person (including the
provisions automatically deemed included herein unless expressly excluded by this Indenture) are a
part of and govern this Indenture, whether or not physically contained herein.

          SECTION 11.8 Effect of Headings and Table of Contents. The Article and Section
headings herein and the Table of Contents are for convenience only and shall not affect the
construction hereof.

          SECTION 11.9 Successors and Assigns. All covenants and agreements in this Indenture
and the Notes by the Issuer shall bind its successors and assigns, whether so expressed or not.
All agreements of the Trustee in this Indenture shall bind its successors. All agreements of the
Trust Collateral Agent in this Indenture shall bind its successors.

          SECTION 11.10 Separability. In case any provision in this Indenture or in the Notes
shall be invalid, illegal or unenforceable, the validity, legality, and enforceability of the
remaining provisions shall not in any way be affected or impaired thereby.

          SECTION 11.11 Benefits of Indenture. The Security Insurer and its successors and
assigns shall be a third-party beneficiary to the provisions of this Indenture, and shall be
entitled to rely upon and directly to enforce such provisions of this Indenture so long as no
Insurer Default shall have occurred and be continuing. The Swap Provider shall be third-party
beneficiaries to the provisions of this Indenture. Nothing in this Indenture or in the Notes,
express or implied, shall give to any Person, other than the parties hereto and their successors
hereunder, the Swap Provider and the Noteholders, and any other party secured hereunder, and any
other person with an Ownership interest in any part of the Trust Estate, any benefit or any legal
or equitable right, remedy or claim under this Indenture. The Security Insurer may disclaim any of
its rights and powers under this Indenture (in which case the Trustee may exercise such right or
power hereunder), but not its duties and obligations under the Note Policy, upon delivery of a
written notice to the Trustee.

          In exercising any of its voting rights, rights to direct or consent or any other rights as the
Security Insurer under this Indenture or any other Basic Document, subject to the terms and
conditions of this Indenture, the Security Insurer shall not have any obligation or duty to any
Person to consider or take into account the interests of any Person and shall not be liable to
any Person for any action taken by it or at its discretion or any failure by it to act or to direct
that any action be taken, without regard to whether such inaction or action benefits or adversely
affects any Noteholder, the Issuer or any other Person.

          SECTION 11.12 Legal Holidays. In any case where the date on which any payment is due
shall not be a Business Day, then (notwithstanding any other provision of the Notes or this
Indenture) payment 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 date an which nominally due, and no interest
shall accrue for the period from and after any such nominal date.

65

 

          SECTION 11.13 GOVERNING LAW. THIS INDENTURE SHALL BE CONSTRUED IN ACCORDANCE WITH,
AND THIS INDENTURE AND ALL MATTERS ARISING OUT OF OR RELATING IN ANY WAY TO THIS INDENTURE SHALL
BE, GOVERNED BY THE LAW OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ITS CONFLICT OF LAW
PROVISIONS (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

          SECTION 11.14 Counterparts. This Indenture may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument.

          SECTION 11.15 Recording of Indenture. If this Indenture is subject to recording in
any appropriate public recording offices, such recording is to be effected by the Issuer and at its
expense accompanied by an Opinion of Counsel (which may be counsel to the Trustee or any other
counsel reasonably acceptable to the Trustee and the Security Insurer) to the effect that such
recording is necessary either for the protection of the Noteholders or any other person secured
hereunder or for the enforcement of any right or remedy granted to the Trustee or the Trust
Collateral Agent under this Indenture or the Collateral Agent under the Spread Account Agreement.

          SECTION 11.16 Trust Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer, the Seller, the Servicer, the Owner Trustee, the
Trust Collateral Agent or the Trustee on the Notes or under this Indenture, any other Basic
Document or any certificate or other writing delivered in connection herewith or therewith, against
(i) the Seller, the Servicer, the Trustee, the Trust Collateral Agent or the Owner Trustee in its
individual capacity, (ii) any owner of a beneficial interest in the Issuer or (iii) any partner,
owner, beneficiary, agent, officer, director, employee or agent of the Seller, the Servicer, the
Trustee, the Trust Collateral Agent or the Owner Trustee in its individual capacity, any holder of
a beneficial interest in the Issuer, the
Seller, the Servicer, the Owner Trustee, the Trust Collateral Agent or the Trustee or of any
successor or assign of the Seller, the Servicer, the Trustee, the Trust Collateral Agent or the
Owner Trustee in its individual capacity, except as any such Person may have expressly agreed (it
being understood that the Trustee, the Trust Collateral Agent and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call owing to such entity.
For all purposes of this Indenture, 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 Article VI, VII and VIII of the Trust Agreement.

          SECTION 11.17 No Petition. The Trustee and the Trust Collateral Agent, by entering
into this Indenture, and each Noteholder, by accepting a Note, hereby covenant and agree that they
will not at any time institute against the Seller, or the Issuer, or join in any institution
against the Seller, or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or
liquidation proceedings, or other proceedings under any United States federal or State bankruptcy
or similar law in connection with any obligations relating to the Notes, this Indenture or any of
the Basic Documents.

66

 

          SECTION 11.18 Inspection. The Issuer agrees that, on reasonable prior notice, it will
permit any representative of the Trustee or of the Security Insurer, during the Issuer’s normal
business hours, to examine all the books of account, records, reports, and other papers of the
Issuer, to make copies and extracts therefrom, to cause such books to be audited by independent
certified public accountants, and to discuss the Issuer’s affairs, finances and accounts with the
Issuer’s officers, employees, and independent certified public accountants, all at such reasonable
times and as often as may be reasonably requested. Notwithstanding anything herein to the
contrary, the foregoing shall not be construed to prohibit (i) disclosure of any and all
information that is or becomes publicly known, (ii) disclosure of any and all information (A) if
required to do so by any applicable statute, law, rule or regulation, (B) to any government agency
or regulatory body having or claiming authority to regulate or oversee any respects of the
Trustee’s business or that of its affiliates, (C) pursuant to any subpoena, civil investigative
demand or similar demand or request of any court, regulatory authority, arbitrator or arbitration
to which the Trustee or an affiliate or an officer, director, employer or shareholder thereof is a
party, (D) in any preliminary or final offering circular, registration statement or contract or
other document pertaining to the transactions contemplated by the Indenture approved in advance by
the Servicer or the Issuer or (E) to any independent or internal auditor, agent, employee or
attorney of the Trustee having a need to know the same, provided that the Trustee advises such
recipient of the confidential nature of the information being disclosed, or (iii) any other
disclosure authorized by the Servicer or the Issuer.

[SIGNATURE PAGE FOLLOWS]

67

 

          IN WITNESS WHEREOF, the Issuer and the Trustee have caused this Indenture to be duly executed
by their respective officers, hereunto duly authorized, all as of the day and year first above
written.

	 	 	 	 	 
	 	 	AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M,
	 
	 	 	 	 
	

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Owner Trustee
	 
	 	 	 	 
	

	 	By:
	 	/s/ Joann A. Rozell
	

	 	 	 	 
	

	 	 	 	Name: Joann A. Rozell
	

	 	 	 	Title: Assistant Vice President
	 
	 	 	 	 
	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION,
	 	 	not in its individual capacity but solely as
Trustee and Trust Collateral Agent
	 
	 	 	 	 
	

	 	By:
	 	/s/ Marianna C. Stershic
	

	 	 	 	 
	

	 	 	 	Name: Marianna C. Stershic
	

	 	 	 	Title: Vice President

[Indenture]

 

 

EXHIBIT A-1

	 	 	 
	REGISTERED

	 	$239,000,000

No. RB-A-1

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. 03061N JF 7

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M

CLASS A-1 3.301% ASSET BACKED NOTE

          AmeriCredit Automobile Receivables Trust 2005-B-M, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of TWO
HUNDRED THIRTY-NINE MILLION DOLLARS payable on each Distribution Date in an amount equal to the
result obtained by multiplying (i) a fraction the numerator of which is $239,000,000 and the
denominator of which is $239,000,000 by (ii) the aggregate amount, if any, payable from the Note
Distribution Account in respect of principal on the Class A-1 Notes pursuant to the Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on June 6, 2006 Distribution Date (the “Final Scheduled Distribution
Date”). The Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available for payment. Interest
on this Note will accrue for each Distribution Date from the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, if no interest has yet been
paid, from June 2, 2005. Interest will be computed on the basis of a 360-day year and the actual
number of days in the related Interest Period. Such principal of and interest on this Note shall
be paid in the manner specified on the reverse hereof.

          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and

A-1-1

 

private debts. All payments made by the Issuer with respect to this Note shall be applied
first to interest due and payable on this Note as provided above and then to the unpaid principal
of this Note.

          The Notes are entitled to the benefits of a note guaranty insurance policy (the “Note
Policy”) issued by MBIA Insurance Corporation (the “Security Insurer”), pursuant to
which the Security Insurer has unconditionally guaranteed payments of the Noteholders’ Interest
Distributable Amount (net of any interest shortfall resulting from the application of the
Servicemembers Civil Relief Act, as amended, or any similar state legislation or regulations) and
the Noteholders’ Parity Deficit Amount with respect to each Distribution Date and the unpaid
principal balance of the Notes on the Final Schedule Distribution Date, all as more fully set forth
in the Note Policy.

          Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

          Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

A-1-2

 

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

	 	 	 	 	 
	 	 	AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M
	 
	 	 	 	 
	

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Owner Trustee under the

Trust Agreement
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: June 2, 2005	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its

individual capacity but solely as Trustee
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signer

A-1-3

 

[REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-1 3.301% Asset Backed Notes (herein called the “Class A-1 Notes”), all issued under an
Indenture dated as of May 25, 2005 (such indenture, as supplemented or amended, is herein called
the “Indenture”), between the Issuer and Wells Fargo Bank, National Association, as trustee
(the “Trustee,” which term includes any successor Trustee under the Indenture) and as trust
collateral agent (the “Trust Collateral Agent”), which term includes any successor Trust
Collateral Agent) to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

          The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
(together, the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

          Principal of the Class A-1 Notes will be payable on each Distribution Date in an amount
described on the face hereof. “Distribution Date” means the sixth day of each month, or,
if any such date is not a Business Day, the next succeeding Business Day, commencing July 6, 2005.
If AmeriCredit is no longer acting as Servicer, the distribution date may be a different day of the
month. The term “Distribution Date,” shall be deemed to include the Final Scheduled
Distribution Date.

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Final Scheduled Distribution Date and the Redemption Date, if any, pursuant
to the Indenture. As described above, a portion of the unpaid principal balance of this Note shall
be due and payable on the Redemption Date, if any. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable (i) on the date on which an Event of
Default shall have occurred and be continuing if the Security Insurer has declared the Notes to be
immediately due and payable in the manner provided in the Indenture, so long as an Insurer Default
shall not have occurred and be continuing or (ii) if an Insurer Default shall have occurred and be
continuing, on the date on which an Event of Default shall have occurred and be continuing and the
Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount
of the Notes have declared the Notes to be immediately due and payable in the manner provided in
the Indenture. All principal payments on the Class A-1 Notes shall be made pro rata to the Class
A-1 Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Distribution Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears

A-1-4

 

on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Holder hereof as of the Record Date
preceding such Distribution Date by notice mailed prior to such Distribution Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Note at the
Trustee’s principal Corporate Trust Office or at the office of the Trustee’s agent appointed for
such purposes located in Minneapolis, Minnesota.

          The Issuer shall pay interest on overdue installments of interest at the Class A-1 Interest
Rate to the extent lawful.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar which requirements include membership or participation in
Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the
Trustee may require, and thereupon one or more new Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note covenants and agrees (i) that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (a) the Seller, the Servicer, the Trustee or the Owner Trustee in its individual capacity,
(b) any owner of a beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Seller, the Servicer,
the Owner Trustee or the Trustee or of any successor or assign of the Seller, the Servicer, the
Trustee or the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call

A-1-5

 

owing to such entity, and (ii) to treat the Notes as indebtedness for purposes of federal
income, state and local income and franchise and any other income taxes.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Trustee and the Security Insurer and any agent of the Issuer, the Trustee or the Security Insurer
may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall
be affected by notice to the contrary.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Security Insurer and of
the Noteholders representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. The Indenture also contains provisions permitting the Noteholders representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Noteholders under the Indenture.

          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

          This Note and the Indenture 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 and thereunder shall be determined in accordance with such laws.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place, and rate, and in the coin or currency
herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither Wilmington Trust Company in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally

A-1-6

 

liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Owner Trustee for the sole
purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The Holder of
this Note by the acceptance hereof agrees that except as expressly provided in the Indenture or the
Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

A-1-7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

         
                  (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Note on the books kept for registration thereof, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated

	 	1	 	 
	

	 	 
	 	 
	

	 	 	 	Signature Guaranteed:
	 
	 	 	 	 
	 	 	 

	1	 	NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

A-1-8

 

STATEMENT OF INSURANCE

	 	 	 
	OBLIGATIONS:

	 	AmeriCredit Automobile Receivables Trust 2005-B-M
	

	 	Automobile Receivables Backed Notes
	

	 	$239,000,000 Class A-1 Notes
	

	 	$375,000,000 Class A-2 Notes
	

	 	$430,000,000 Class A-3 Notes
	

	 	$306,000,000 Class A-4 Notes

     MBIA Insurance Corporation (the “Insurer”) has issued a Note Guaranty Insurance Policy (the
“Policy”) relating to the Obligations containing the following provisions, the Policy being on file
at the Corporate Trust Office of Wells Fargo Bank, National Association (the “Trustee”).

     The Insurer, in consideration of the payment of the premium and subject to the terms of the
Policy, thereby unconditionally and irrevocably guarantees to any Owner that an amount equal to
each full and complete Insured Payment will be received from the Insurer by the Trustee, or its
successors, as trustee for the Owners, on behalf of the Owners, for distribution by the Trustee to
each Owner of each Owner’s proportionate share of the Insured Payment. The Insurer’s obligations
under the Policy with respect to a particular Insured Payment shall be discharged to the extent
funds equal to the applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only at the time set
forth in the Policy, and no accelerated Insured Payments shall be made regardless of any
acceleration of the Obligations, unless such acceleration is at the sole option of the Insurer.

     Notwithstanding the foregoing paragraph, this Policy does not cover any shortfalls, if any,
attributable to the liability of the Issuer or the Trustee for withholding taxes, if any (including
interest and penalties in respect of any such liability).

     The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day
following receipt on a Business Day by the Fiscal Agent (as described below) of (a) a certified
copy of the order requiring the return of a preference payment, (b) an opinion of counsel
satisfactory to the Insurer that such order is final and not subject to appeal, (c) an assignment
in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations against the debtor
which made such preference payment or otherwise with respect to such preference payment and (d)
appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any
legal proceeding related to such preference payment, such instruments being in a form satisfactory
to the Insurer, provided that if such documents are received after 12:00 noon, New York City time,
on such Business Day, they will be deemed to be received on the following Business Day. Such
payments shall be disbursed to the receiver or trustee in bankruptcy named in the final order of
the court exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such
Owner has returned principal or interest paid on the Obligations to such receiver or trustee in
bankruptcy, in which case such payment shall be disbursed to such Owner.

A-1-9

 

     The Insurer will pay any other amount payable under the Policy no later than 12:00 noon, New
York City time, on the later of the Distribution Date on which the related Deficiency Amount is due
or the second Business Day following receipt in New York, New York on a Business Day by U.S. Bank
Trust National Association, as Fiscal Agent for the Insurer, or any successor fiscal agent
appointed by the Insurer (the “Fiscal Agent”), of a Notice (as described below), provided that if
such Notice is received after 12:00 noon, New York City time, on such Business Day, it will be
deemed to be received on the following Business Day. If any such Notice received by the Fiscal
Agent is not in proper form or is otherwise insufficient for the purpose of making claim under the
Policy, it shall be deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall promptly so advise the
Trustee and the Trustee may submit an amended Notice.

     Insured Payments due under the Policy, unless otherwise stated in the Policy, will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire transfer of
immediately available funds in the amount of the Insured Payment less, in respect of Insured
Payments related to Preference Amounts, any amount held by the Trustee for the payment of such
Insured Payment and legally available therefor.

     The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent shall in no event be
liable to Owners for any acts of the Fiscal Agent or any failure of the Insurer to deposit, or
cause to be deposited, sufficient funds to make payments due under the Policy.

     Subject to the terms of the Agreement, the Insurer shall be subrogated to the rights of each
Owner to receive payments under the Obligations to the extent of any payment by the Insurer under
the Policy.

     As used in the Policy, the following terms shall have the following meanings:

     “Agreement” means the Indenture dated as of May 25, 2005 among AmeriCredit Automobile
Receivables Trust 2005-B-M, as Issuer and Wells Fargo Bank, National Association, as Trustee and
Trust Collateral Agent, and the Sale and Servicing Agreement dated as of May 25, 2005 among
AmeriCredit Automobile Receivables Trust 2005-B-M, as Issuer, AFS SenSub Corp., as Seller,
AmeriCredit Financial Services, Inc., as Servicer and Wells Fargo Bank, National Association, as
Trust Collateral Agent and Backup Servicer, without regard to any amendment or supplement thereto,
unless such amendment or supplement has been approved in writing by the Insurer.

     “Business Day” means any day other than (a) a Saturday or a Sunday, (b) a day on which the
Insurer is closed or (c) a day on which banking institutions in the states of Texas, Delaware,
Minnesota or New York are authorized or obligated by law or executive order to be closed.

     “Deficiency Amount” means, for any Distribution Date, an amount equal to the excess, if any,
of (a) the sum, without duplication, of (i) the Noteholders’ Interest Distributable Amount (net of
any interest shortfall resulting from the application of the Servicemembers Civil Relief Act, as
amended, or any similar state legislation or regulations), (ii) the Noteholders’ Parity Deficit
Amount for the related Distribution Date and (iii) if the related Distribution Date is the Final
Scheduled Distribution Date for any Class, the unpaid principal amount of the Class over

A-1-10

 

(b) the sum, without duplication, of (i) the amount actually deposited into the Note
Distribution Account on the related Distribution Date (excluding amounts to be drawn under the
Insurance Policy) and (ii) Additional Funds Available, if any, for the Distribution Date.

     “Insured Payment” means (a) as of any Distribution Date, any Deficiency Amount and (b) any
Preference Amount.

     “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is
subsequently delivered by registered or certified mail, from the Trustee specifying the Insured
Payment which shall be due and owing on the applicable Distribution Date.

     “Owner” means each Note Owner (as defined in the Agreement) who, on the applicable Payment
Date, is entitled under the terms of the applicable Obligations to payment thereunder.

     “Preference Amount” means any amount previously distributed to an Owner on the Obligations
that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time in
accordance with a final nonappealable order of a court having competent jurisdiction.

     Capitalized terms used in the Policy and not otherwise defined therein shall have the
respective meanings set forth in the Agreement as of the date of execution of the Policy, without
giving effect to any subsequent amendment to or modification of the Agreement unless such amendment
or modification has been approved in writing by the Insurer.

     Any notice under the Policy or service of process on the Fiscal Agent may be made at the
address listed below for the Fiscal Agent or such other address as the Insurer shall specify in
writing to the Trustee.

     The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New York, New
York 10006, Attention: Municipal Registrar and Paying Agency, or such other address as the Fiscal
Agent shall specify to the Trustee in writing.

     THE POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE CONSTRUED UNDER, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

     The insurance provided by the Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York Insurance Law.

     The Policy is not cancelable for any reason. The premium on the Policy is not refundable for
any reason, including payment, or provision being made for payment, prior to maturity of the
Obligations.

	 	 	 	 	 
	

	 	 	 	MBIA INSURANCE CORPORATION

A-1-11

 

EXHIBIT A-2

	 	 	 
	REGISTERED

	 	$375,000,000

No. RB-A-2

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. 03061N JG 5

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M

CLASS A-2 3.78% ASSET BACKED NOTE

          AmeriCredit Automobile Receivables Trust 2005-B-M, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of THREE
HUNDRED SEVENTY-FIVE MILLION DOLLARS payable on each Distribution Date in an amount equal to the
result obtained by multiplying (i) a fraction the numerator of which is $375,000,000 and the
denominator of which is $375,000,000 by (ii) the aggregate amount, if any, payable from the Note
Distribution Account in respect of principal on the Class A-2 Notes pursuant to the Indenture;
provided, however, that the entire unpaid principal amount of this Note shall be
due and payable on July 7, 2008 Distribution Date (the “Final Scheduled Distribution
Date”). The Issuer will pay interest on this Note at the rate per annum shown above on each
Distribution Date until the principal of this Note is paid or made available for payment. Interest
on this Note will accrue for each Distribution Date from the most recent Distribution Date on which
interest has been paid to but excluding such Distribution Date or, if no interest has yet been
paid, from June 2, 2005. Interest will be computed on the basis of a 360 day year consisting of
twelve 30-day months. Such principal of and interest on this Note shall be paid in the manner
specified on the reverse hereof.

          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and

A-2-1

 

private debts. All payments made by the Issuer with respect to this Note shall be applied
first to interest due and payable on this Note as provided above and then to the unpaid principal
of this Note.

          The Notes are entitled to the benefits of a note guaranty insurance policy (the “Note
Policy”) issued by MBIA Insurance Corporation (the “Security Insurer”), pursuant to
which the Security Insurer has unconditionally guaranteed payments of the Noteholders’ Interest
Distributable Amount (net of any interest shortfall resulting from the application of the
Servicemembers Civil Relief Act, as amended, or any similar state legislation or regulations) and
the Noteholders’ Parity Deficit Amount with respect to each Distribution Date and the unpaid
principal balance of the Notes on the Final Schedule Distribution Date, all as more fully set forth
in the Note Policy.

          Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

          Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

A-2-2

 

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

	 	 	 	 	 
	 	 	AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M
	 
	 	 	 	 
	

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Owner Trustee under the

Trust Agreement
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: June 2, 2005	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its

individual capacity but solely as Trustee
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signer

A-2-3

 

[REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-2 3.78% Asset Backed Notes (herein called the “Class A-2 Notes”), all issued under an
Indenture dated as of May 25, 2005 (such indenture, as supplemented or amended, is herein called
the “Indenture”), between the Issuer and Wells Fargo Bank, National Association, as trustee
(the “Trustee,” which term includes any successor Trustee under the Indenture) and as trust
collateral agent (the “Trust Collateral Agent”), which term includes any successor Trust
Collateral Agent) to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

          The Class A-1 Notes, the Class A-2 Notes, the Class A-3-Notes and the Class A-4 Notes
(together, the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

          Principal of the Class A-2 Notes will be payable on each Distribution Date in an amount
described on the face hereof. “Distribution Date” means the sixth day of each month, or,
if any such date is not a Business Day, the next succeeding Business Day, commencing July 6, 2005.
If AmeriCredit is no longer acting as Servicer, the distribution date may be a different day of the
month. The term “Distribution Date,” shall be deemed to include the Final Scheduled
Distribution Date.

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Final Scheduled Distribution Date and the Redemption Date, if any, pursuant
to the Indenture. As described above, a portion of the unpaid principal balance of this Note shall
be due and payable on the Redemption Date, if any. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable (i) on the date on which an Event of
Default shall have occurred and be continuing if the Security Insurer has declared the Notes to be
immediately due and payable in the manner provided in the Indenture, so long as an Insurer Default
shall not have occurred and be continuing or (ii) if an Insurer Default shall have occurred and be
continuing, on the date on which an Event of Default shall have occurred and be continuing and the
Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount
of the Notes have declared the Notes to be immediately due and payable in the manner provided in
the Indenture. All principal payments on the Class A-2 Notes shall be made pro rata to the Class
A-2 Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Distribution Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears

A-2-4

 

on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Holder hereof as of the Record Date
preceding such Distribution Date by notice mailed prior to such Distribution Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Note at the
Trustee’s principal Corporate Trust Office or at the office of the Trustee’s agent appointed for
such purposes located in Minneapolis, Minnesota.

          The Issuer shall pay interest on overdue installments of interest at the Class A-2 Interest
Rate to the extent lawful.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar which requirements include membership or participation in
Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the
Trustee may require, and thereupon one or more new Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note covenants and agrees (i) that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (a) the Seller, the Servicer, the Trustee or the Owner Trustee in its individual capacity,
(b) any owner of a beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Seller, the Servicer,
the Owner Trustee or the Trustee or of any successor or assign of the Seller, the Servicer, the
Trustee or the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call

A-2-5

 

owing to such entity, and (ii) to treat the Notes as indebtedness for purposes of federal
income, state and local income and franchise and any other income taxes.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Trustee and the Security Insurer and any agent of the Issuer, the Trustee or the Security Insurer
may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall
be affected by notice to the contrary.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Security Insurer and of
the Noteholders representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. The Indenture also contains provisions permitting the Noteholders representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Noteholders under the Indenture.

          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

          This Note and the Indenture 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 and thereunder shall be determined in accordance with such laws.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place, and rate, and in the coin or currency
herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither Wilmington Trust Company in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally

A-2-6

 

liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Owner Trustee for the sole
purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The Holder of
this Note by the acceptance hereof agrees that except as expressly provided in the Indenture or the
Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

A-2-7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

               
                  (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Note on the books kept for registration thereof, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated

	 	1	 	 
	

	 	 
	 	 
	

	 	 	 	Signature Guaranteed:
	 
	 	 	 

     1 NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

A-2-8

 

STATEMENT OF INSURANCE

	 	 	 
	OBLIGATIONS:

	 	AmeriCredit Automobile Receivables Trust 2005-B-M
	

	 	Automobile Receivables Backed Notes
	

	 	$239,000,000 Class A-1 Notes
	

	 	$375,000,000 Class A-2 Notes
	

	 	$430,000,000 Class A-3 Notes
	

	 	$306,000,000 Class A-4 Notes

     MBIA Insurance Corporation (the “Insurer”) has issued a Note Guaranty Insurance Policy (the
“Policy”) relating to the Obligations containing the following provisions, the Policy being on file
at the Corporate Trust Office of Wells Fargo Bank, National Association (the “Trustee”).

     The Insurer, in consideration of the payment of the premium and subject to the terms of the
Policy, thereby unconditionally and irrevocably guarantees to any Owner that an amount equal to
each full and complete Insured Payment will be received from the Insurer by the Trustee, or its
successors, as trustee for the Owners, on behalf of the Owners, for distribution by the Trustee to
each Owner of each Owner’s proportionate share of the Insured Payment. The Insurer’s obligations
under the Policy with respect to a particular Insured Payment shall be discharged to the extent
funds equal to the applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only at the time set
forth in the Policy, and no accelerated Insured Payments shall be made regardless of any
acceleration of the Obligations, unless such acceleration is at the sole option of the Insurer.

     Notwithstanding the foregoing paragraph, this Policy does not cover any shortfalls, if any,
attributable to the liability of the Issuer or the Trustee for withholding taxes, if any (including
interest and penalties in respect of any such liability).

     The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day
following receipt on a Business Day by the Fiscal Agent (as described below) of (a) a certified
copy of the order requiring the return of a preference payment, (b) an opinion of counsel
satisfactory to the Insurer that such order is final and not subject to appeal, (c) an assignment
in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations against the debtor
which made such preference payment or otherwise with respect to such preference payment and (d)
appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any
legal proceeding related to such preference payment, such instruments being in a form satisfactory
to the Insurer, provided that if such documents are received after 12:00 noon, New York City time,
on such Business Day, they will be deemed to be received on the following Business Day. Such
payments shall be disbursed to the receiver or trustee in bankruptcy named in the final order of
the court exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such
Owner has returned principal or interest paid on the Obligations to such receiver or trustee in
bankruptcy, in which case such payment shall be disbursed to such Owner.

A-2-9

 

     The Insurer will pay any other amount payable under the Policy no later than 12:00 noon, New
York City time, on the later of the Distribution Date on which the related Deficiency Amount is due
or the second Business Day following receipt in New York, New York on a Business Day by U.S. Bank
Trust National Association, as Fiscal Agent for the Insurer, or any successor fiscal agent
appointed by the Insurer (the “Fiscal Agent”), of a Notice (as described below), provided that if
such Notice is received after 12:00 noon, New York City time, on such Business Day, it will be
deemed to be received on the following Business Day. If any such Notice received by the Fiscal
Agent is not in proper form or is otherwise insufficient for the purpose of making claim under the
Policy, it shall be deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall promptly so advise the
Trustee and the Trustee may submit an amended Notice.

     Insured Payments due under the Policy, unless otherwise stated in the Policy, will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire transfer of
immediately available funds in the amount of the Insured Payment less, in respect of Insured
Payments related to Preference Amounts, any amount held by the Trustee for the payment of such
Insured Payment and legally available therefor.

     The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent shall in no event be
liable to Owners for any acts of the Fiscal Agent or any failure of the Insurer to deposit, or
cause to be deposited, sufficient funds to make payments due under the Policy.

     Subject to the terms of the Agreement, the Insurer shall be subrogated to the rights of each
Owner to receive payments under the Obligations to the extent of any payment by the Insurer under
the Policy.

     As used in the Policy, the following terms shall have the following meanings:

     “Agreement” means the Indenture dated as of May 25, 2005 among AmeriCredit Automobile
Receivables Trust 2005-B-M, as Issuer and Wells Fargo Bank, National Association, as Trustee and
Trust Collateral Agent, and the Sale and Servicing Agreement dated as of May 25, 2005 among
AmeriCredit Automobile Receivables Trust 2005-B-M, as Issuer, AFS SenSub Corp., as Seller,
AmeriCredit Financial Services, Inc., as Servicer, Wells Fargo Bank, National Association, as Trust
Collateral Agent and Backup Servicer, without regard to any amendment or supplement thereto, unless
such amendment or supplement has been approved in writing by the Insurer.

     “Business Day” means any day other than (a) a Saturday or a Sunday, (b) a day on which the
Insurer is closed or (c) a day on which banking institutions in the states of Texas, Delaware,
Minnesota or New York are authorized or obligated by law or executive order to be closed.

     “Deficiency Amount” means, for any Distribution Date, an amount equal to the excess, if any,
of (a) the sum, without duplication, of (i) the Noteholders’ Interest Distributable Amount (net of
any interest shortfall resulting from the application of the Servicemembers Civil Relief Act, as
amended, or any similar state legislation or regulations), (ii) the Noteholders’ Parity Deficit
Amount for the related Distribution Date and (iii) if the related Distribution Date is the Final
Scheduled Distribution Date for any Class, the unpaid principal amount of the Class over

A-2-10

 

(b) the sum, without duplication, of (i) the amount actually deposited into the Note
Distribution Account on the related Distribution Date (excluding amounts to be drawn under the
Insurance Policy) and (ii) Additional Funds Available, if any, for the Distribution Date.

     “Insured Payment” means (a) as of any Distribution Date, any Deficiency Amount and (b) any
Preference Amount.

     “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is
subsequently delivered by registered or certified mail, from the Trustee specifying the Insured
Payment which shall be due and owing on the applicable Distribution Date.

     “Owner” means each Note Owner (as defined in the Agreement) who, on the applicable Payment
Date, is entitled under the terms of the applicable Obligations to payment thereunder.

     “Preference Amount” means any amount previously distributed to an Owner on the Obligations
that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time in
accordance with a final nonappealable order of a court having competent jurisdiction.

     Capitalized terms used in the Policy and not otherwise defined therein shall have the
respective meanings set forth in the Agreement as of the date of execution of the Policy, without
giving effect to any subsequent amendment to or modification of the Agreement unless such amendment
or modification has been approved in writing by the Insurer.

     Any notice under the Policy or service of process on the Fiscal Agent may be made at the
address listed below for the Fiscal Agent or such other address as the Insurer shall specify in
writing to the Trustee.

     The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New York, New
York 10006, Attention: Municipal Registrar and Paying Agency, or such other address as the Fiscal
Agent shall specify to the Trustee in writing.

     THE POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE CONSTRUED UNDER, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

     The insurance provided by the Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York Insurance Law.

     The Policy is not cancelable for any reason. The premium on the Policy is not refundable for
any reason, including payment, or provision being made for payment, prior to maturity of the
Obligations.

MBIA INSURANCE CORPORATIONS.CONT     

A-2-11

 

EXHIBIT A-3

	 	 	 
	REGISTERED

	 	$430,000,000

No. RB-A-3

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. 03061N JH 3

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M

CLASS A-3 4.05% ASSET BACKED NOTE

          AmeriCredit Automobile Receivables Trust 2005-B-M, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of FOUR
HUNDRED THIRTY MILLION DOLLARS payable on each Distribution Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $430,000,000 and the denominator
of which is $430,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution
Account in respect of principal on the Class A-3 Notes pursuant to the Indenture; provided,
however, that the entire unpaid principal amount of this Note shall be due and payable on
February 8, 2010 Distribution Date (the “Final Scheduled Distribution Date”). The Issuer
will pay interest on this Note at the rate per annum shown above on each Distribution Date until
the principal of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from the most recent Distribution Date on which interest has been
paid to but excluding such Distribution Date or, if no interest has yet been paid, from June 2,
2005. Interest will be computed on the basis of a 360-day year consisting of twelve 30-day months.
Such principal of and interest on this Note shall be paid in the manner specified on the reverse
hereof.

          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and

A-3-1

 

private debts. All payments made by the Issuer with respect to this Note shall be applied
first to interest due and payable on this Note as provided above and then to the unpaid principal
of this Note.

          The Notes are entitled to the benefits of a note guaranty insurance policy (the “Note
Policy”) issued by MBIA Insurance Corporation (the “Security Insurer”), pursuant to
which the Security Insurer has unconditionally guaranteed payments of the Noteholders’ Interest
Distributable Amount (net of any interest shortfall resulting from the application of the
Servicemembers Civil Relief Act, as amended, or any similar state legislation or regulations) and
the Noteholders’ Parity Deficit Amount with respect to each Distribution Date and the unpaid
principal balance of the Notes on the Final Schedule Distribution Date, all as more fully set forth
in the Note Policy.

          Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

          Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

A-3-2

 

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

	 	 	 	 	 
	 	 	AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M
	 
	 	 	 	 
	

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Owner Trustee under the

Trust Agreement
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

          This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: June 2, 2005	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its

individual capacity but solely as Trustee
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signer

A-3-3

 

[REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-3 4.05% Asset Backed Notes (herein called the “Class A-3 Notes”), all issued under an
Indenture dated as of May 25, 2005 (such indenture, as supplemented or amended, is herein called
the “Indenture”), between the Issuer and Wells Fargo, National Association, as trustee (the
“Trustee,” which term includes any successor Trustee under the Indenture) and as trust
collateral agent (the “Trust Collateral Agent”), which term includes any successor Trust
Collateral Agent) to which Indenture and all indentures supplemental thereto reference is hereby
made for a statement of the respective rights and obligations thereunder of the Issuer, the Trustee
and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All terms used
in this Note that are defined in the Indenture, as supplemented or amended, shall have the meanings
assigned to them in or pursuant to the Indenture, as so supplemented or amended.

          The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
(together, the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

          Principal of the Class A-3 Notes will be payable on each Distribution Date in an amount
described on the face hereof. “Distribution Date” means the sixth day of each month, or, if any
such date is not a Business Day, the next succeeding Business Day, commencing July 6, 2005. If
AmeriCredit is no longer acting as Servicer, the distribution date may be a different day of the
month. The term “Distribution Date,” shall be deemed to include the Final Scheduled
Distribution Date.

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Final Scheduled Distribution Date and the Redemption Date, if any, pursuant
to the Indenture. As described above, a portion of the unpaid principal balance of this Note shall
be due and payable on the Redemption Date, if any. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable (i) on the date on which an Event of
Default shall have occurred and be continuing if the Security Insurer has declared the Notes to be
immediately due and payable in the manner provided in the Indenture, so long as an Insurer Default
shall not have occurred and be continuing or (ii) if an Insurer Default shall have occurred and be
continuing, on the date on which an Event of Default shall have occurred and be continuing and the
Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount
of the Notes have declared the Notes to be immediately due and payable in the manner provided in
the Indenture. All principal payments on the Class A-3 Notes shall be made pro rata to the Class
A-3 Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Distribution Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such checks shall be mailed
to the Person entitled thereto at the address of such Person as it appears

A-3-4

 

on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Holder hereof as of the Record Date
preceding such Distribution Date by notice mailed prior to such Distribution Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Note at the
Trustee’s principal Corporate Trust Office or at the office of the Trustee’s agent appointed for
such purposes located in Minneapolis, Minnesota.

          The Issuer shall pay interest on overdue installments of interest at the Class A-3 Interest
Rate to the extent lawful.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar which requirements include membership or participation in
Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the
Trustee may require, and thereupon one or more new Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note covenants and agrees (i) that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (a) the Seller, the Servicer, the Trustee or the Owner Trustee in its individual capacity,
(b) any owner of a beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Seller, the Servicer,
the Owner Trustee or the Trustee or of any successor or assign of the Seller, the Servicer, the
Trustee or the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call

A-3-5

 

owing to such entity, and (ii) to treat the Notes as indebtedness for purposes of federal
income, state and local income and franchise and any other income taxes.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Trustee and the Security Insurer and any agent of the Issuer, the Trustee or the Security Insurer
may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall
be affected by notice to the contrary.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Security Insurer and of
the Noteholders representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. The Indenture also contains provisions permitting the Noteholders representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Noteholders under the Indenture.

          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

          This Note and the Indenture 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 and thereunder shall be determined in accordance with such laws.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place, and rate, and in the coin or currency
herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither Wilmington Trust Company in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally

A-3-6

 

liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Owner Trustee for the sole
purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The Holder of
this Note by the acceptance hereof agrees that except as expressly provided in the Indenture or the
Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

A-3-7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

               (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Note on the books kept for registration thereof, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated

	 	1	 	 
	

	 	 
	 	 
	 
	 	 	 	 
	 	 	 
	

	 	 	 	Signature Guaranteed:

 

     1 NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

A-3-8

 

STATEMENT OF INSURANCE

	 	 	 
	OBLIGATIONS:

	 	AmeriCredit Automobile Receivables Trust 2005-B-M
	

	 	Automobile Receivables Backed Notes
	

	 	$239,000,000 Class A-1 Notes
	

	 	$375,000,000 Class A-2 Notes
	

	 	$430,000,000 Class A-3 Notes
	

	 	$306,000,000 Class A-4 Notes

     MBIA Insurance Corporation (the “Insurer”) has issued a Note Guaranty Insurance Policy (the
“Policy”) relating to the Obligations containing the following provisions, the Policy being on file
at the Corporate Trust Office of Wells Fargo Bank, National Association (the “Trustee”).

     The Insurer, in consideration of the payment of the premium and subject to the terms of the
Policy, thereby unconditionally and irrevocably guarantees to any Owner that an amount equal to
each full and complete Insured Payment will be received from the Insurer by the Trustee, or its
successors, as trustee for the Owners, on behalf of the Owners, for distribution by the Trustee to
each Owner of each Owner’s proportionate share of the Insured Payment. The Insurer’s obligations
under the Policy with respect to a particular Insured Payment shall be discharged to the extent
funds equal to the applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only at the time set
forth in the Policy, and no accelerated Insured Payments shall be made regardless of any
acceleration of the Obligations, unless such acceleration is at the sole option of the Insurer.

     Notwithstanding the foregoing paragraph, this Policy does not cover any shortfalls, if any,
attributable to the liability of the Issuer or the Trustee for withholding taxes, if any (including
interest and penalties in respect of any such liability).

     The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day
following receipt on a Business Day by the Fiscal Agent (as described below) of (a) a certified
copy of the order requiring the return of a preference payment, (b) an opinion of counsel
satisfactory to the Insurer that such order is final and not subject to appeal, (c) an assignment
in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations against the debtor
which made such preference payment or otherwise with respect to such preference payment and (d)
appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any
legal proceeding related to such preference payment, such instruments being in a form satisfactory
to the Insurer, provided that if such documents are received after 12:00 noon, New York City time,
on such Business Day, they will be deemed to be received on the following Business Day. Such
payments shall be disbursed to the receiver or trustee in bankruptcy named in the final order of
the court exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such
Owner has returned principal or interest paid on the Obligations to such receiver or trustee in
bankruptcy, in which case such payment shall be disbursed to such Owner.

A-3-9

 

     The Insurer will pay any other amount payable under the Policy no later than 12:00 noon, New
York City time, on the later of the Distribution Date on which the related Deficiency Amount is due
or the second Business Day following receipt in New York, New York on a Business Day by U.S. Bank
Trust National Association, as Fiscal Agent for the Insurer, or any successor fiscal agent
appointed by the Insurer (the “Fiscal Agent”), of a Notice (as described below), provided that if
such Notice is received after 12:00 noon, New York City time, on such Business Day, it will be
deemed to be received on the following Business Day. If any such Notice received by the Fiscal
Agent is not in proper form or is otherwise insufficient for the purpose of making claim under the
Policy, it shall be deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall promptly so advise the
Trustee and the Trustee may submit an amended Notice.

     Insured Payments due under the Policy, unless otherwise stated in the Policy, will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire transfer of
immediately available funds in the amount of the Insured Payment less, in respect of Insured
Payments related to Preference Amounts, any amount held by the Trustee for the payment of such
Insured Payment and legally available therefor.

     The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent shall in no event be
liable to Owners for any acts of the Fiscal Agent or any failure of the Insurer to deposit, or
cause to be deposited, sufficient funds to make payments due under the Policy.

     Subject to the terms of the Agreement, the Insurer shall be subrogated to the rights of each
Owner to receive payments under the Obligations to the extent of any payment by the Insurer under
the Policy.

     As used in the Policy, the following terms shall have the following meanings:

     “Agreement” means the Indenture dated as of May 25, 2005 among AmeriCredit Automobile
Receivables Trust 2005-B-M, as Issuer and Wells Fargo Bank, National Association, as Trustee and
Trust Collateral Agent, and the Sale and Servicing Agreement dated as of May 25, 2005 among
AmeriCredit Automobile Receivables Trust 2005-B-M, as Issuer, AFS SenSub Corp., as Seller,
AmeriCredit Financial Services, Inc., as Servicer, Wells Fargo Bank, National Association, as Trust
Collateral Agent and Backup Servicer, without regard to any amendment or supplement thereto, unless
such amendment or supplement has been approved in writing by the Insurer.

     “Business Day” means any day other than (a) a Saturday or a Sunday, (b) a day on which the
Insurer is closed or (c) a day on which banking institutions in the states of Texas, Delaware,
Minnesota or New York are authorized or obligated by law or executive order to be closed.

     “Deficiency Amount” means, for any Distribution Date, an amount equal to the excess, if any,
of (a) the sum, without duplication, of (i) the Noteholders’ Interest Distributable Amount (net of
any interest shortfall resulting from the application of the Servicemembers Civil Relief Act, as
amended, or any similar state legislation or regulations), (ii) the Noteholders’ Parity Deficit
Amount for the related Distribution Date and (iii) if the related Distribution Date is the Final
Scheduled Distribution Date for any Class, the unpaid principal amount of the Class over

A-3-10

 

(b) the sum, without duplication, of (i) the amount actually deposited into the Note
Distribution Account on the related Distribution Date (excluding amounts to be drawn under the
Insurance Policy) and (ii) Additional Funds Available, if any, for the Distribution Date.

     “Insured Payment” means (a) as of any Distribution Date, any Deficiency Amount and (b) any
Preference Amount.

     “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is
subsequently delivered by registered or certified mail, from the Trustee specifying the Insured
Payment which shall be due and owing on the applicable Distribution Date.

     “Owner” means each Note Owner (as defined in the Agreement) who, on the applicable Payment
Date, is entitled under the terms of the applicable Obligations to payment thereunder.

     “Preference Amount” means any amount previously distributed to an Owner on the Obligations
that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time in
accordance with a final nonappealable order of a court having competent jurisdiction.

     Capitalized terms used in the Policy and not otherwise defined therein shall have the
respective meanings set forth in the Agreement as of the date of execution of the Policy, without
giving effect to any subsequent amendment to or modification of the Agreement unless such amendment
or modification has been approved in writing by the Insurer.

     Any notice under the Policy or service of process on the Fiscal Agent may be made at the
address listed below for the Fiscal Agent or such other address as the Insurer shall specify in
writing to the Trustee.

     The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New York, New
York 10006, Attention: Municipal Registrar and Paying Agency, or such other address as the Fiscal
Agent shall specify to the Trustee in writing.

     THE POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE CONSTRUED UNDER, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

     The insurance provided by the Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York Insurance Law.

     The Policy is not cancelable for any reason. The premium on the Policy is not refundable for
any reason, including payment, or provision being made for payment, prior to maturity of the
Obligations.

MBIA INSURANCE CORPORATION     

A-3-11

 

EXHIBIT A-4

	 	 	 
	REGISTERED

	 	$306,000,000

No. RB-A-4

SEE REVERSE FOR CERTAIN DEFINITIONS

CUSIP NO. 03061N JJ 9

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

          THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN. ACCORDINGLY, THE
OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE AT ANY TIME MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE
HEREOF.

AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M

CLASS A-4 FLOATING RATE ASSET BACKED NOTE

          AmeriCredit Automobile Receivables Trust 2005-B-M, a statutory trust organized and existing
under the laws of the State of Delaware (herein referred to as the “Issuer”), for value
received, hereby promises to pay to CEDE & CO., or registered assigns, the principal sum of THREE
HUNDRED SIX MILLION DOLLARS payable on each Distribution Date in an amount equal to the result
obtained by multiplying (i) a fraction the numerator of which is $306,000,000 and the denominator
of which is $306,000,000 by (ii) the aggregate amount, if any, payable from the Note Distribution
Account in respect of principal on the Class A-4 Notes pursuant to the Indenture; provided,
however, that the entire unpaid principal amount of this Note shall be due and payable on
May 7, 2012 Distribution Date (the “Final Scheduled Distribution Date”). The Issuer will
pay interest on this Note at the rate per annum equal to LIBOR plus 0.08% on each Distribution Date
until the principal of this Note is paid or made available for payment. Interest on this Note will
accrue for each Distribution Date from the most recent Distribution Date on which interest has been
paid to but excluding such Distribution Date or, if no interest has yet been paid, from June 2,
2005. Interest will be computed on the basis of a 360-day year and the actual number of days in
the related Interest Period. Such principal of and interest on this Note shall be paid in the
manner specified on the reverse hereof.

          The principal of and interest on this Note are payable in such coin or currency of the United
States of America as at the time of payment is legal tender for payment of public and

A-4-1

 

private debts. All payments made by the Issuer with respect to this Note shall be applied
first to interest due and payable on this Note as provided above and then to the unpaid principal
of this Note.

          The Notes are entitled to the benefits of a note guaranty insurance policy (the “Note
Policy”) issued by MBIA Insurance Corporation (the “Security Insurer”), pursuant to
which the Security Insurer has unconditionally guaranteed payments of the Noteholders’ Interest
Distributable Amount (net of any interest shortfall resulting from the application of the
Servicemembers Civil Relief Act, as amended, or any similar state legislation or regulations) and
the Noteholders’ Parity Deficit Amount with respect to each Distribution Date and the unpaid
principal balance of the Notes on the Final Schedule Distribution Date, all as more fully set forth
in the Note Policy.

          Reference is made to the further provisions of this Note set forth on the reverse hereof,
which shall have the same effect as though fully set forth on the face of this Note.

          Unless the certificate of authentication hereon has been executed by the Trustee whose name
appears below by manual signature, this Note shall not be entitled to any benefit under the
Indenture referred to on the reverse hereof, or be valid or obligatory for any purpose.

A-4-2

 

          IN WITNESS WHEREOF, the Issuer has caused this instrument to be signed, manually or in
facsimile, by its Authorized Officer as of the date set forth below.

	 	 	 	 	 
	 	 	AMERICREDIT AUTOMOBILE RECEIVABLES TRUST 2005-B-M
	 
	 	 	 	 
	

	 	By:
	 	WILMINGTON TRUST COMPANY, not in its individual

capacity but solely as Owner Trustee under the

Trust Agreement
	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Name:
	

	 	 	 	Title:

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

     This is one of the Notes designated above and referred to in the within-mentioned Indenture.

	 	 	 	 	 
	Date: June 2, 2005	 	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its

individual capacity but solely as Trustee
	 
	 	 	 	 
	

	 	By:	 	 
	

	 	 	 	 
	

	 	 	 	Authorized Signer

A-4-3

 

[REVERSE OF NOTE]

          This Note is one of a duly authorized issue of Notes of the Issuer, designated as its Class
A-4 LIBOR plus 0.08% Asset Backed Notes (herein called the “Class A-4 Notes”), all issued
under an Indenture dated as of May 25, 2005 (such indenture, as supplemented or amended, is herein
called the “Indenture”), between the Issuer and Wells Fargo Bank, National Association, as
trustee (the “Trustee,” which term includes any successor Trustee under the Indenture) and
as trust collateral agent (the “Trust Collateral Agent”), which term includes any successor
Trust Collateral Agent to which Indenture and all indentures supplemental thereto reference is
hereby made for a statement of the respective rights and obligations thereunder of the Issuer, the
Trustee and the Holders of the Notes. The Notes are subject to all terms of the Indenture. All
terms used in this Note that are defined in the Indenture, as supplemented or amended, shall have
the meanings assigned to them in or pursuant to the Indenture, as so supplemented or amended.

          The Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes
(together, the “Notes”) are and will be equally and ratably secured by the collateral
pledged as security therefor as provided in the Indenture.

          Principal of the Class A-4 Notes will be payable on each Distribution Date in an amount
described on the face hereof. “Distribution Date” means the sixth day of each month, or, if any
such date is not a Business Day, the next succeeding Business Day, commencing July 6, 2005. If
AmeriCredit is no longer acting as Servicer, the distribution date may be a different day of the
month. The term “Distribution Date,” shall be deemed to include the Final Scheduled
Distribution Date.

          As described above, the entire unpaid principal amount of this Note shall be due and payable
on the earlier of the Final Scheduled Distribution Date and the Redemption Date, if any, pursuant
to the Indenture. As described above, a portion of the unpaid principal balance of this Note shall
be due and payable on the Redemption Date, if any. Notwithstanding the foregoing, the entire
unpaid principal amount of the Notes shall be due and payable (i) on the date on which an Event of
Default shall have occurred and be continuing if the Security Insurer has declared the Notes to be
immediately due and payable in the manner provided in the Indenture, so long as an Insurer Default
shall not have occurred and be continuing or (ii) if an Insurer Default shall have occurred and be
continuing, on the date on which an Event of Default shall have occurred and be continuing and the
Trustee or the Holders of the Notes representing not less than a majority of the Outstanding Amount
of the Notes have declared the Notes to be immediately due and payable in the manner provided in
the Indenture. All principal payments on the Class A-4 Notes shall be made pro rata to the Class
A-4 Noteholders entitled thereto.

          Payments of interest on this Note due and payable on each Distribution Date, together with the
installment of principal, if any, to the extent not in full payment of this Note, shall be made by
check mailed to the Person whose name appears as the Holder of this Note (or one or more
Predecessor Notes) on the Note Register as of the close of business on each Record Date, except
that with respect to Notes registered on the Record Date in the name of the nominee of the Clearing
Agency (initially, such nominee to be Cede & Co.), payments will be made by wire transfer in
immediately available funds to the account designated by such nominee. Such

A-4-4

 

checks shall be mailed to the Person entitled thereto at the address of such Person as it
appears on the Note Register as of the applicable Record Date without requiring that this Note be
submitted for notation of payment. Any reduction in the principal amount of this Note (or any one
or more Predecessor Notes) effected by any payments made on any Distribution Date shall be binding
upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof, whether or not noted hereon. If funds are expected
to be available, as provided in the Indenture, for payment in full of the then remaining unpaid
principal amount of this Note on a Distribution Date, then the Trustee, in the name of and on
behalf of the Issuer, will notify the Person who was the Holder hereof as of the Record Date
preceding such Distribution Date by notice mailed prior to such Distribution Date and the amount
then due and payable shall be payable only upon presentation and surrender of this Note at the
Trustee’s principal Corporate Trust Office or at the office of the Trustee’s agent appointed for
such purposes located in Minneapolis, Minnesota.

          The Issuer shall pay interest on overdue installments of interest at the Class A-4 Interest
Rate to the extent lawful.

          As provided in the Indenture and subject to certain limitations set forth therein, the
transfer of this Note may be registered on the Note Register upon surrender of this Note for
registration of transfer at the office or agency designated by the Issuer pursuant to the
Indenture, (i) duly endorsed by, or accompanied by a written instrument of transfer in form
satisfactory to the Trustee duly executed by, the Holder hereof or his attorney duly authorized in
writing, with such signature guaranteed by an “eligible guarantor institution” meeting the
requirements of the Note Registrar which requirements include membership or participation in
Securities Transfer Agents Medallion Program (“STAMP”) or such other “signature guarantee
program” as may be determined by the Note Registrar in addition to, or in substitution for, STAMP,
all in accordance with the Exchange Act, and (ii) accompanied by such other documents as the
Trustee may require, and thereupon one or more new Notes of authorized denominations and in the
same aggregate principal amount will be issued to the designated transferee or transferees. No
service charge will be charged for any registration of transfer or exchange of this Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

          Each Noteholder or Note Owner, by acceptance of a Note or, in the case of a Note Owner, a
beneficial interest in a Note covenants and agrees (i) that no recourse may be taken, directly or
indirectly, with respect to the obligations of the Issuer, the Owner Trustee or the Trustee on the
Notes or under the Indenture or any certificate or other writing delivered in connection therewith,
against (a) the Seller, the Servicer, the Trustee or the Owner Trustee in its individual capacity,
(b) any owner of a beneficial interest in the Issuer or (c) any partner, owner, beneficiary, agent,
officer, director or employee of the Seller, the Servicer, the Trustee or the Owner Trustee in its
individual capacity, any holder of a beneficial interest in the Issuer, the Seller, the Servicer,
the Owner Trustee or the Trustee or of any successor or assign of the Seller, the Servicer, the
Trustee or the Owner Trustee in its individual capacity, except as any such Person may have
expressly agreed (it being understood that the Trustee and the Owner Trustee have no such
obligations in their individual capacity) and except that any such partner, owner or beneficiary
shall be fully liable, to the extent provided by applicable law, for any unpaid consideration for
stock, unpaid capital contribution or failure to pay any installment or call

A-4-5

 

owing to such entity, and (ii) to treat the Notes as indebtedness for purposes of federal
income, state and local income and franchise and any other income taxes.

          Prior to the due presentment for registration of transfer of this Note, the Issuer, the
Trustee and the Security Insurer and any agent of the Issuer, the Trustee or the Security Insurer
may treat the Person in whose name this Note (as of the day of determination or as of such other
date as may be specified in the Indenture) is registered as the owner hereof for all purposes,
whether or not this Note be overdue, and neither the Issuer, the Trustee nor any such agent shall
be affected by notice to the contrary.

          The Indenture permits, with certain exceptions as therein provided, the amendment thereof and
the modification of the rights and obligations of the Issuer and the rights of the Holders of the
Notes under the Indenture at any time by the Issuer with the consent of the Security Insurer and of
the Noteholders representing a majority of the Outstanding Amount of all Notes at the time
Outstanding. The Indenture also contains provisions permitting the Noteholders representing
specified percentages of the Outstanding Amount of the Notes, on behalf of the Holders of all the
Notes, to waive compliance by the Issuer with certain provisions of the Indenture and certain past
defaults under the Indenture and their consequences. Any such consent or waiver by the Holder of
this Note (or any one of more Predecessor Notes) shall be conclusive and binding upon such Holder
and upon all future Holders of this Note and of any Note issued upon the registration of transfer
hereof or in exchange hereof or in lieu hereof whether or not notation of such consent or waiver is
made upon this Note. The Indenture also permits the Trustee to amend or waive certain terms and
conditions set forth in the Indenture without the consent of Holders of the Notes issued
thereunder.

          The term “Issuer” as used in this Note includes any successor to the Issuer under the
Indenture.

          The Issuer is permitted by the Indenture, under certain circumstances, to merge or
consolidate, subject to the rights of the Trustee and the Noteholders under the Indenture.

          The Notes are issuable only in registered form in denominations as provided in the Indenture,
subject to certain limitations therein set forth.

          This Note and the Indenture 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 and thereunder shall be determined in accordance with such laws.

          No reference herein to the Indenture and no provision of this Note or of the Indenture shall
alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the
principal of and interest on this Note at the times, place, and rate, and in the coin or currency
herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly provided in the Indenture
or the Basic Documents, neither Wilmington Trust Company in its individual capacity, any owner of a
beneficial interest in the Issuer, nor any of their respective partners, beneficiaries, agents,
officers, directors, employees or successors or assigns shall be personally

A-4-6

 

liable for, nor shall recourse be had to any of them for, the payment of principal of or
interest on, or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in this Note or the Indenture, it being expressly understood that said
covenants, obligations and indemnifications have been made by the Owner Trustee for the sole
purposes of binding the interests of the Owner Trustee in the assets of the Issuer. The Holder of
this Note by the acceptance hereof agrees that except as expressly provided in the Indenture or the
Basic Documents, in the case of an Event of Default under the Indenture, the Holder shall have no
claim against any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein shall be taken to prevent recourse to, and
enforcement against, the assets of the Issuer for any and all liabilities, obligations and
undertakings contained in the Indenture or in this Note.

A-4-7

 

ASSIGNMENT

Social Security or taxpayer I.D. or other identifying number of assignee

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

        
                      (name and address of assignee)

the within Note and all rights thereunder, and hereby irrevocably constitutes and appoints,
attorney, to transfer said Note on the books kept for registration thereof, with full power of
substitution in the premises.

	 	 	 	 	 
	Dated

	 	1	 	 
	

	 	 
	 	 
	

	 	 	 	Signature Guaranteed:
	 
	 	 	 

 

     1 NOTE: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within Note in every particular, without alteration, enlargement or any
change whatsoever.

A-4-8

 

STATEMENT OF INSURANCE

	 	 	 	 
	OBLIGATIONS:

	 	 	AmeriCredit Automobile Receivables Trust 2005-B-M
	

	 	 	Automobile Receivables Backed Notes
	

	 	 	$239,000,000 Class A-1 Notes
	

	 	 	$375,000,000 Class A-2 Notes
	

	 	 	$430,000,000 Class A-3 Notes
	

	 	 	$306,000,000 Class A-4 Notes

     MBIA Insurance Corporation (the “Insurer”) has issued a Note Guaranty Insurance Policy (the
“Policy”) relating to the Obligations containing the following provisions, the Policy being on file
at the Corporate Trust Office of Wells Fargo Bank, National Association (the “Trustee”).

     The Insurer, in consideration of the payment of the premium and subject to the terms of the
Policy, thereby unconditionally and irrevocably guarantees to any Owner that an amount equal to
each full and complete Insured Payment will be received from the Insurer by the Trustee, or its
successors, as trustee for the Owners, on behalf of the Owners, for distribution by the Trustee to
each Owner of each Owner’s proportionate share of the Insured Payment. The Insurer’s obligations
under the Policy with respect to a particular Insured Payment shall be discharged to the extent
funds equal to the applicable Insured Payment are received by the Trustee, whether or not such
funds are properly applied by the Trustee. Insured Payments shall be made only at the time set
forth in the Policy, and no accelerated Insured Payments shall be made regardless of any
acceleration of the Obligations, unless such acceleration is at the sole option of the Insurer.

     Notwithstanding the foregoing paragraph, this Policy does not cover any shortfalls, if any,
attributable to the liability of the Issuer or the Trustee for withholding taxes, if any (including
interest and penalties in respect of any such liability).

     The Insurer will pay any Insured Payment that is a Preference Amount on the Business Day
following receipt on a Business Day by the Fiscal Agent (as described below) of (a) a certified
copy of the order requiring the return of a preference payment, (b) an opinion of counsel
satisfactory to the Insurer that such order is final and not subject to appeal, (c) an assignment
in such form as is reasonably required by the Insurer, irrevocably assigning to the Insurer all
rights and claims of the Owner relating to or arising under the Obligations against the debtor
which made such preference payment or otherwise with respect to such preference payment and (d)
appropriate instruments to effect the appointment of the Insurer as agent for such Owner in any
legal proceeding related to such preference payment, such instruments being in a form satisfactory
to the Insurer, provided that if such documents are received after 12:00 noon, New York City time,
on such Business Day, they will be deemed to be received on the following Business Day. Such
payments shall be disbursed to the receiver or trustee in bankruptcy named in the final order of
the court exercising jurisdiction on behalf of the Owner and not to any Owner directly unless such
Owner has returned principal or interest paid on the Obligations to such receiver or trustee in
bankruptcy, in which case such payment shall be disbursed to such Owner.

A-4-9

 

     The Insurer will pay any other amount payable under the Policy no later than 12:00 noon, New
York City time, on the later of the Distribution Date on which the related Deficiency Amount is due
or the second Business Day following receipt in New York, New York on a Business Day by U.S. Bank
Trust National Association, as Fiscal Agent for the Insurer, or any successor fiscal agent
appointed by the Insurer (the “Fiscal Agent”), of a Notice (as described below), provided that if
such Notice is received after 12:00 noon, New York City time, on such Business Day, it will be
deemed to be received on the following Business Day. If any such Notice received by the Fiscal
Agent is not in proper form or is otherwise insufficient for the purpose of making claim under the
Policy, it shall be deemed not to have been received by the Fiscal Agent for purposes of this
paragraph, and the Insurer or the Fiscal Agent, as the case may be, shall promptly so advise the
Trustee and the Trustee may submit an amended Notice.

     Insured Payments due under the Policy, unless otherwise stated in the Policy, will be
disbursed by the Fiscal Agent to the Trustee on behalf of the Owners by wire transfer of
immediately available funds in the amount of the Insured Payment less, in respect of Insured
Payments related to Preference Amounts, any amount held by the Trustee for the payment of such
Insured Payment and legally available therefor.

     The Fiscal Agent is the agent of the Insurer only, and the Fiscal Agent shall in no event be
liable to Owners for any acts of the Fiscal Agent or any failure of the Insurer to deposit, or
cause to be deposited, sufficient funds to make payments due under the Policy.

     Subject to the terms of the Agreement, the Insurer shall be subrogated to the rights of each
Owner to receive payments under the Obligations to the extent of any payment by the Insurer under
the Policy.

     As used in the Policy, the following terms shall have the following meanings:

     “Agreement” means the Indenture dated as of May 25, 2005 among AmeriCredit Automobile
Receivables Trust 2005-B-M, as Issuer and Wells Fargo Bank, National Association, as Trustee and
Trust Collateral Agent, and the Sale and Servicing Agreement dated as of May 25, 2005 among
AmeriCredit Automobile Receivables Trust 2005-B-M, as Issuer, AFS SenSub Corp., as Seller,
AmeriCredit Financial Services, Inc., as Servicer, Wells Fargo Bank, National Association, as Trust
Collateral Agent and Backup Servicer, without regard to any amendment or supplement thereto, unless
such amendment or supplement has been approved in writing by the Insurer.

     “Business Day” means any day other than (a) a Saturday or a Sunday, (b) a day on which the
Insurer is closed or (c) a day on which banking institutions in the states of Texas, Delaware,
Minnesota or New York are authorized or obligated by law or executive order to be closed.

     “Deficiency Amount” means, for any Distribution Date, an amount equal to the excess, if any,
of (a) the sum, without duplication, of (i) the Noteholders’ Interest Distributable Amount (net of
any interest shortfall resulting from the application of the Servicemembers Civil Relief Act, as
amended, or any similar state legislation or regulations), (ii) the Noteholders’ Parity Deficit
Amount for the related Distribution Date and (iii) if the related Distribution Date is the Final
Scheduled Distribution Date for any Class, the unpaid principal amount of the Class over

A-4-10

 

(b) the sum, without duplication, of (i) the amount actually deposited into the Note
Distribution Account on the related Distribution Date (excluding amounts to be drawn under the
Insurance Policy) and (ii) Additional Funds Available, if any, for the Distribution Date.

     “Insured Payment” means (a) as of any Distribution Date, any Deficiency Amount and (b) any
Preference Amount.

     “Notice” means the telephonic or telegraphic notice, promptly confirmed in writing by
facsimile substantially in the form of Exhibit A attached hereto, the original of which is
subsequently delivered by registered or certified mail, from the Trustee specifying the Insured
Payment which shall be due and owing on the applicable Distribution Date.

     “Owner” means each Note Owner (as defined in the Agreement) who, on the applicable Payment
Date, is entitled under the terms of the applicable Obligations to payment thereunder.

     “Preference Amount” means any amount previously distributed to an Owner on the Obligations
that is recoverable and sought to be recovered as a voidable preference by a trustee in bankruptcy
pursuant to the United States Bankruptcy Code (11 U.S.C.), as amended from time to time in
accordance with a final nonappealable order of a court having competent jurisdiction.

     Capitalized terms used in the Policy and not otherwise defined therein shall have the
respective meanings set forth in the Agreement as of the date of execution of the Policy, without
giving effect to any subsequent amendment to or modification of the Agreement unless such amendment
or modification has been approved in writing by the Insurer.

     Any notice under the Policy or service of process on the Fiscal Agent may be made at the
address listed below for the Fiscal Agent or such other address as the Insurer shall specify in
writing to the Trustee.

     The notice address of the Fiscal Agent is 15th Floor, 61 Broadway, New York, New
York 10006, Attention: Municipal Registrar and Paying Agency, or such other address as the Fiscal
Agent shall specify to the Trustee in writing.

     THE POLICY IS BEING ISSUED UNDER AND PURSUANT TO, AND SHALL BE CONSTRUED UNDER, THE LAWS OF
THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS PRINCIPLES THEREOF.

     The insurance provided by the Policy is not covered by the Property/Casualty Insurance
Security Fund specified in Article 76 of the New York Insurance Law.

     The Policy is not cancelable for any reason. The premium on the Policy is not refundable for
any reason, including payment, or provision being made for payment, prior to maturity of the
Obligations.

MBIA INSURANCE CORPORATION     

A-4-11

 

SCHEDULE A

REPRESENTATIONS AND WARRANTIES OF THE ISSUER

Representations and Warranties Regarding the Receivables:

1. Security Interest in Financed Vehicle. This Indenture creates a valid and
continuing security interest (as defined in the applicable UCC) in the Receivables in favor
of the Trust Collateral Agent, which security interest is prior to all other Liens, and is
enforceable as such as against creditors of and purchasers from the Seller. The Issuer owns
and has good and marketable title to the Receivables free and clear of any Lien (other than
the Lien in favor of the Trust Collateral Agent), claim or encumbrance of any Person.

2. All Filings Made. The Issuer has taken all steps necessary to perfect the Trust
Collateral Agent’s security interest in the property securing the Receivables, provided
that, if not done as of the Closing Date, the Issuer will cause, within ten days of the
Closing Date, the filing of all appropriate financing statements in the proper filing office
in the State of Delaware under applicable law in order to perfect the security interest in
the Receivables granted to the Trust Collateral Agent hereunder.

3. No Impairment. The Issuer has not done anything to convey any right to any
Person that would result in such Person having a right to payments due under the Receivable
or otherwise to impair the rights of the Security Insurer, the Trustee, the Trust Collateral
Agent and the Noteholders in any Receivable or the proceeds thereof. Other than the security
interest granted to the Trust Collateral Agent pursuant to this Indenture, the Issuer has
not pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of
the Receivables. The Issuer has not authorized the filing of and is not aware of any
financing statements against the Issuer that include a description of collateral covering
the Receivables other than any financing statement relating to the security interest granted
to the Trust Collateral Agent hereunder or that has been terminated. The Issuer is not aware
of any judgment or tax lien filings against it.

4. Chattel Paper. The Receivables constitute chattel paper within the meaning of
the UCC as in effect in the States of Texas, New York, Delaware, Nevada and Minnesota.

5. Good Title. Immediately prior to the pledge of the Receivables to the Trust
Collateral Agent pursuant to this Indenture, the Issuer was the sole owner thereof and had
good and indefeasible title thereto, free of any Lien and, upon execution and delivery of
this Agreement, the Trust shall have good and indefeasible title to and will be the sole
owner of such Receivables, free of any Lien. No Dealer or Third-Party Lender has a
participation in, or other right to receive, proceeds of any Receivable. The Issuer has not
taken any action to convey any right to any Person that would result in such Person having a
right to payments received under the related Insurance Policies or the related Dealer
Agreements, Auto Loan Purchase and Sale Agreements, Dealer Assignments or Third-Party Lender
Assignments or to payments due under such Receivables.

 SCH. A-1

 

 

6. Possession of Original Copies. The Servicer, as Custodian on behalf of the
Issuer, has in its possession all original copies of the contracts that constitute or
evidence the Receivable.

Representations and Warranties Regarding the Swap Collateral:

1. This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Swap Collateral in favor of the Trust Collateral Agent, which
security interest is prior to all other Liens, and is enforceable as such as against
creditors of and purchasers from the Issuer.

2. The Swap Collateral constitutes “general intangibles” within the meaning of the
applicable UCC.

3. The Issuer owns and has good and marketable title to the Swap Collateral free and clear
of any Lien, claim or encumbrance of any Person.

4. The Issuer has received all consents and approvals required by the terms of the Swap
Agreement to pledge of the Swap Collateral hereunder to the Trust Collateral Agent.

5. The Issuer has caused or will have caused, within ten days, the filing of all appropriate
financing statements in the proper filing office in the appropriate jurisdictions under
applicable law in order to perfect the security interest in the Swap Collateral granted to
the Trust Collateral Agent hereunder.

6. Other than the security interest granted to the Trust Collateral Agent pursuant to this
Agreement, the Issuer has not pledged, assigned, sold, granted a security interest in, or
otherwise conveyed any of the Swap Collateral. The Issuer has not authorized the filing of
and is not aware of any financing statements against the Issuer that include a description
of collateral covering the Swap Collateral other than any financing statement relating to
the security interest granted to the Trust Collateral Agent hereunder or that has been
terminated.

 SCH. A-2

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