Document:

Exhibit 10.3

(Multicurrency—Cross Border)

ISDA® 
 
International Swap Dealers Association, Inc. 

MASTER AGREEMENT

dated as of
[                    ]

[_____________________]          and
          USAA Auto Owner
Trust 20[  ]-[ ]

have entered
and/or anticipate entering into one or more transactions (each a “Transaction”)
that are or will be governed by this Master Agreement, which includes the
schedule (the “Schedule”), and the documents and other confirming evidence
(each a “Confirmation”) exchanged between the parties confirming those
Transactions.

Accordingly, the parties
agree as follows:

	
 

	
 

	
1.

	
Interpretation

(a) Definitions. The
terms defined in Section 14 and in the Schedule will have the meanings therein
specified for the purpose of this Master Agreement.

(b) Inconsistency. In the
event of any inconsistency between the provisions of the Schedule and the other
provisions of this Master Agreement, the Schedule will prevail. In the event of
any inconsistency between the provisions of any Confirmation and this Master
Agreement (including the Schedule), such Confirmation will prevail for the
purpose of the relevant Transaction.

(c) Single Agreement. All
Transactions are entered into in reliance on the fact that this Master
Agreement and all Confirmations form a single agreement between the parties
(collectively referred to as this “Agreement”), and the parties would not
otherwise enter into any Transactions.

	
 

	
 

	
2.

	
Obligations

(a) General Conditions.

	
 

	
 

	
 

	
(i) Each
 party will make each payment or delivery specified in each Confirmation to be
 made by it, subject to the other provisions of this Agreement.

	
 

	
 

	
 

	
(ii)
 Payments under this Agreement will be made on the due date for value on that
 date in the place of the account specified in the relevant Confirmation or
 otherwise pursuant to this Agreement, in freely transferable funds and in the
 manner customary for payments in the required currency. Where settlement is
 by delivery (that is, other than by payment), such delivery will be made for
 receipt on the due date in the manner customary for the relevant

Copyright © 1992 by International Swap Dealers Association, Inc

	
 

	
 

	
 

	
obligation
 unless otherwise specified in the relevant Confirmation or elsewhere in this
 Agreement.

	
 

	
 

	
 

	
(iii) Each
 obligation of each party under Section 2(a)(i) is subject to (1) the
 condition precedent that no Event of Default or Potential Event of Default
 with respect to the other party has occurred and is continuing, (2) the
 condition precedent that no Early Termination Date in respect of the relevant
 Transaction has occurred or been effectively designated and (3) each other
 applicable condition precedent specified in this Agreement.

(b) Change of Account.
Either party may change its account for receiving a payment or delivery by
giving notice to the other party at least five Local Business Days prior to the
scheduled date for the payment or delivery to which such change applies unless
such other party gives timely notice of a reasonable objection to such change.

(c) Netting. If on any
date amounts would otherwise be payable:

	
 

	
 

	
 

	
(i) in the
 same currency; and

	
 

	
 

	
 

	
(ii) in
 respect of the same Transaction,

by each party
to the other, then, on such date, each party’s obligation to make payment of
any such amount will be automatically satisfied and discharged and, if the
aggregate amount that would otherwise have been payable by one party exceeds
the aggregate amount that would otherwise have been payable by the other party,
replaced by an obligation upon the party by whom the larger aggregate amount would
have been payable to pay to the other party the excess of the larger aggregate
amount over the smaller aggregate amount.

The parties
may elect in respect of two or more Transactions that a net amount will be
determined in respect of all amounts payable on the same date in the same
currency in respect of such Transactions, regardless of whether such amounts
are payable in respect of the same Transaction. The election may be made in the
Schedule or a Confirmation by specifying that subparagraph (ii) above will not
apply to the Transactions identified as being subject to the election, together
with the starting date (in which case subparagraph (ii) above will not, or will
cease to, apply to such Transactions from such date). This election may be made
separately for different groups of Transactions and will apply separately to
each pairing of Offices through which the parties make and receive payments or
deliveries.

(d) Deduction or Withholding for Tax.

	
 

	
 

	
 

	
(i) Gross-Up.
 All payments under this Agreement will be made without any deduction or
 withholding for or on account of any Tax unless such deduction or withholding
 is required by any applicable law, as modified by the practice of any
 relevant governmental revenue authority, then in effect. If a party is so required
 to deduct or withhold, then that party (“X”) will:

	
 

	
 

	
 

	
 

	
 

	
(1) promptly
 notify the other party (“Y”) of such requirement;

	
 

	
 

	
 

	
 

	
 

	
(2) pay to
 the relevant authorities the full amount required to be deducted or withheld
 (including the full amount required to be deducted or withheld from any
 additional amount paid by X to Y under this Section 2(d)) promptly upon the
 earlier of determining that such deduction or withholding is required or
 receiving notice that such amount has been assessed against Y;

2

	
 

	
 

	
 

	
 

	
 

	
(3) promptly
 forward to Y an official receipt (or a certified copy), or other
 documentation reasonably acceptable to Y, evidencing such payment to such
 authorities; and

	
 

	
 

	
 

	
 

	
 

	
(4) if such
 Tax is an Indemnifiable Tax, pay to Y, in addition to the payment to which Y
 is otherwise entitled under this Agreement, such additional amount as is
 necessary to ensure that the net amount actually received by Y (free and
 clear of Indemnifiable Taxes, whether assessed against X or Y) will equal the
 full amount Y would have received had no such deduction or withholding been
 required. However, X will not be required to pay any additional amount to Y
 to the extent that it would not be required to be paid but for:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A) the
 failure by Y to comply with or perform any agreement contained in Section
 4(a)(i), 4(a)(iii) or 4(d); or

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B) the
 failure of a representation made by Y pursuant to Section 3(f) to be accurate
 and true unless such failure would not have occurred but for (I) any action
 taken by a taxing authority, or brought in a court of competent jurisdiction,
 on or after the date on which a Transaction is entered into (regardless of
 whether such action is taken or brought with respect to a party to this
 Agreement) or (II) a Change in Tax Law.

	
 

	
 

	
 

	
(ii) Liability. If:

	
 

	
 

	
 

	
 

	
 

	
(1) X is
 required by any applicable law, as modified by the practice of any relevant
 governmental revenue authority, to make any deduction or withholding in
 respect of which X would not be required to pay an additional amount to Y
 under Section 2(d)(i)(4);

	
 

	
 

	
 

	
 

	
 

	
(2) X does
 not so deduct or withhold; and

	
 

	
 

	
 

	
 

	
 

	
(3) a
 liability resulting from such Tax is assessed directly against X,

	
 

	
 

	
 

	
then, except to the extent
 Y has satisfied or then satisfies the liability resulting from such Tax, Y
 will promptly pay to X the amount of such liability (including any related
 liability for interest, but including any related liability for penalties
 only if Y has failed to comply with or perform any agreement contained in
 Section 4(a)(i), 4(a)(iii) or 4(d)).

(e) Default Interest; Other Amounts.
Prior to the occurrence or effective designation of an Early Termination Date
in respect of the relevant Transaction, a party that defaults in the
performance of any payment obligation will, to the extent permitted by law and
subject to Section 6(c), be required to pay interest (before as well as after
judgment) on the overdue amount to the other party on demand in the same
currency as such overdue amount, for the period from (and including) the
original due date for payment to (but excluding) the date of actual payment, at
the Default Rate. Such interest will be calculated on the basis of daily
compounding and the actual number of days elapsed. If, prior to the occurrence
or effective designation of an Early Termination Date in respect of the
relevant Transaction, a party defaults in the performance of any obligation
required to be settled by delivery, it will compensate the other party on
demand if and to the extent provided for in the relevant Confirmation or
elsewhere in this Agreement.

3

	
 

	
 

	
3.

	
Representations

Each party
represents to the other party (which representations will be deemed to be
repeated by each party on each date on which a Transaction is entered into and,
in the case of the representations in Section 3(f), at all times until the
termination of this Agreement) that:

(a) Basic Representations.

	
 

	
 

	
 

	
(i) Status.
 It is duly organised and validly existing under the laws of the jurisdiction
 of its organisation or incorporation and, if relevant under such laws, in
 good standing;

	
 

	
 

	
 

	
(ii) Powers. It has the
 power to execute this Agreement and any other documentation relating to this
 Agreement to which it is a party, to deliver this Agreement and any other
 documentation relating to this Agreement that it is required by this
 Agreement to deliver and to perform its obligations under this Agreement and
 any obligations it has under any Credit Support Document to which it is a
 party and has taken all necessary action to authorise such execution, delivery
 and performance;

	
 

	
 

	
 

	
(iii) No Violation or Conflict.
 Such execution, delivery and performance do not violate or conflict with any
 law applicable to it, any provision of its constitutional documents, any
 order or judgment of any court or other agency of government applicable to it
 or any of its assets or any contractual restriction binding on or affecting
 it or any of its assets;

	
 

	
 

	
 

	
(iv) Consents. All
 governmental and other consents that are required to have been obtained by it
 with respect to this Agreement or any Credit Support Document to which it is
 a party have been obtained and are in full force and effect and all
 conditions of any such consents have been complied with; and

	
 

	
 

	
 

	
(v) Obligations Binding.
 Its obligations under this Agreement and any Credit Support Document to which
 it is a party constitute its legal, valid and binding obligations,
 enforceable in accordance with their respective terms (subject to applicable
 bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting
 creditors’ rights generally and subject, as to enforceability, to equitable
 principles of general application (regardless of whether enforcement is
 sought in a proceeding in equity or at law)).

(b) Absence of Certain Events.
No Event of Default or Potential Event of Default or, to its knowledge,
Termination Event with respect to it has occurred and is continuing and no such
event or circumstance would occur as a result of its entering into or
performing its obligations under this Agreement or any Credit Support Document
to which it is a party.

(c) Absence of Litigation.
There is not pending or, to its knowledge, threatened against it or any of its
Affiliates any action, suit or proceeding at law or in equity or before any
court, tribunal, governmental body, agency or official or any arbitrator that
is likely to affect the legality, validity or enforceability against it of this
Agreement or any Credit Support Document to which it is a party or its ability
to perform its obligations under this Agreement or such Credit Support
Document.

(d) Accuracy of Specified Information.
All applicable information that is furnished in writing by or on behalf of it
to the other party and is identified for the purpose of this Section 3(d) in
the Schedule is, as of the date of the information, true, accurate and complete
in every material respect.

4

(e) Payer Tax Representation.
Each representation specified in the Schedule as being made by it for the
purpose of this Section 3(e) is accurate and true.

(f) Payee Tax Representations.
Each representation specified in the Schedule as being made by it for the
purpose of this Section 3(f) is accurate and true.

	
 

	
 

	
4.

	
Agreements

Each party
agrees with the other that, so long as either party has or may have any
obligation under this Agreement or under any Credit Support Document to which
it is a party:

(a) Furnish Specified Information.
It will deliver to the other party or, in certain cases under subparagraph
(iii) below, to such government or taxing authority as the other party
reasonably directs:

	
 

	
 

	
 

	
(i) any
 forms, documents or certificates relating to taxation specified in the
 Schedule or any Confirmation;

	
 

	
 

	
 

	
(ii) any
 other documents specified in the Schedule or any Confirmation; and

	
 

	
 

	
 

	
(iii) upon
 reasonable demand by such other party, any form or document that may be
 required or reasonably requested in writing in order to allow such other
 party or its Credit Support Provider to make a payment under this Agreement
 or any applicable Credit Support Document without any deduction or withholding
 for or on account of any Tax or with such deduction or withholding at a
 reduced rate (so long as the completion, execution or submission of such form
 or document would not materially prejudice the legal or commercial position
 of the party in receipt of such demand), with any such form or document to be
 accurate and completed in a manner reasonably satisfactory to such other
 party and to be executed and to be delivered with any reasonably required
 certification,

in each case by the date
specified in the Schedule or such Confirmation or, if none is specified, as
soon as reasonably practicable.

(b) Maintain Authorisations.
It will use all reasonable efforts to maintain in full force and effect all
consents of any governmental or other authority that are required to be
obtained by it with respect to this Agreement or any Credit Support Document to
which it is a party and will use all reasonable efforts to obtain any that may
become necessary in the future.

(c) Comply with Laws. It
will comply in all material respects with all applicable laws and orders to
which it may be subject if failure so to comply would materially impair its
ability to perform its obligations under this Agreement or any Credit Support
Document to which it is a party.

(d) Tax Agreement. It
will give notice of any failure of a representation made by it under Section
3(f) to be accurate and true promptly upon learning of such failure.

(e) Payment of Stamp Tax.
Subject to Section 11, it will pay any Stamp Tax levied or imposed upon it or in
respect of its execution or performance of this Agreement by a jurisdiction in
which it is incorporated, organised, managed and controlled, or considered to
have its seat, or in which a branch or office through which it is acting for
the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

5

	
 

	
 

	
5.

	
Events of Default and Termination Events

(a) Events of Default.
The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of
any of the following events constitutes an event of default (an “Event of
Default”) with respect to such party:

	
 

	
 

	
 

	
 

	
(i) Failure to Pay
 or Deliver. Failure by the party to make, when due, any
 payment under this Agreement or delivery under Section 2(a)(i) or 2(e)
 required to be made by it if such failure is not remedied on or before the
 third Local Business Day after notice of such failure is given to the party;

	
 

	
 

	
 

	
(ii) Breach of Agreement.
 Failure by the party to comply with or perform any agreement or obligation
 (other than an obligation to make any payment under this Agreement or
 delivery under Section 2(a)(i) or 2(e) or to give notice of a Termination
 Event or any agreement or obligation under Section 4(a)(i), 4(a)(iii) or
 4(d)) to be complied with or performed by the party in accordance with this
 Agreement if such failure is not remedied on or before the thirtieth day
 after notice of such failure is given to the party;

	
 

	
 

	
 

	
(iii) Credit Support Default.

	
 

	
 

	
 

	
 

	
 

	
(1) Failure
 by the party or any Credit Support Provider of such party to comply with or
 perform any agreement or obligation to be complied with or performed by it in
 accordance with any Credit Support Document if such failure is continuing
 after any applicable grace period has elapsed;

	
 

	
 

	
 

	
 

	
 

	
(2) the
 expiration or termination of such Credit Support Document or the failing or
 ceasing of such Credit Support Document to be in full force and effect for
 the purpose of this Agreement (in either case other than in accordance with
 its terms) prior to the satisfaction of all obligations of such party under
 each Transaction to which such Credit Support Document relates without the
 written consent of the other party; or

	
 

	
 

	
 

	
 

	
 

	
(3) the
 party or such Credit Support Provider disaffirms, disclaims, repudiates or
 rejects, in whole or in part, or challenges the validity of, such Credit
 Support Document;

	
 

	
 

	
 

	
(iv) Misrepresentation.
 A representation (other than a representation under Section 3(e) or (f)) made
 or repeated or deemed to have been made or repeated by the party or any
 Credit Support Provider of such party in this Agreement or any Credit Support
 Document proves to have been incorrect or misleading in any material respect
 when made or repeated or deemed to have been made or repeated;

	
 

	
 

	
 

	
(v) Default under
 Specified Transaction. The party, any Credit Support
 Provider of such party or any applicable Specified Entity of such party (1)
 defaults under a Specified Transaction and, after giving effect to any
 applicable notice requirement or grace period, there occurs a liquidation of,
 an acceleration of obligations under, or an early termination of, that
 Specified Transaction, (2) defaults, after giving effect to any applicable
 notice requirement or grace period, in making any payment or delivery due on
 the last payment, delivery or exchange date of, or any payment on early
 termination of, a Specified Transaction (or such default continues for at
 least three Local Business Days if there is no applicable notice requirement
 or grace period) or (3) disaffirms, disclaims, repudiates or rejects, in
 whole or in part, a Specified 

6

	
 

	
 

	
 

	
 

	
Transaction
 (or such action is taken by any person or entity appointed or empowered to
 operate it or act on its behalf);

	
 

	
 

	
 

	
(vi) Cross Default. If
 “Cross Default” is specified in the Schedule as applying to the party, the
 occurrence or existence of (1) a default, event of default or other similar
 condition or event (however described) in respect of such party, any Credit
 Support Provider of such party or any applicable Specified Entity of such
 party under one or more agreements or instruments relating to Specified
 Indebtedness of any of them (individually or collectively) in an aggregate
 amount of not less than the applicable Threshold Amount (as specified in the
 Schedule) which has resulted in such Specified Indebtedness becoming, or
 becoming capable at such time of being declared, due and payable under such
 agreements or instruments, before it would otherwise have been due and
 payable or (2) a default by such party, such Credit Support Provider or such
 Specified Entity (individually or collectively) in making one or more
 payments on the due date thereof in an aggregate amount of not less than the
 applicable Threshold Amount under such agreements or instruments (after
 giving effect to any applicable notice requirement or grace period);

	
 

	
 

	
 

	
(vii) Bankruptcy. The
 party, any Credit Support Provider of such party or any applicable Specified
 Entity of such party:

	
 

	
 

	
 

	
 

	
(1) is
 dissolved (other than pursuant to a consolidation, amalgamation or merger);
 (2) becomes insolvent or is unable to pay its debts or fails or admits in
 writing its inability generally to pay its debts as they become due; (3)
 makes a general assignment, arrangement or composition with or for the
 benefit of its creditors; (4) institutes or has instituted against it a
 proceeding seeking a judgment of insolvency or bankruptcy or any other relief
 under any bankruptcy or insolvency law or other similar law affecting
 creditors’ rights, or a petition is presented for its winding-up or
 liquidation, and, in the case of any such proceeding or petition instituted
 or presented against it, such proceeding or petition (A) results in a
 judgment of insolvency or bankruptcy or the entry of an order for relief or
 the making of an order for its winding-up or liquidation or (B) is not
 dismissed, discharged, stayed or restrained in each case within 30 days of
 the institution or presentation thereof; (5) has a resolution passed for its
 winding-up, official management or liquidation (other than pursuant to a
 consolidation, amalgamation or merger); (6) seeks or becomes subject to the
 appointment of an administrator, provisional liquidator, conservator,
 receiver, trustee, custodian or other similar official for it or for all or
 substantially all its assets; (7) has a secured party take possession of all
 or substantially all its assets or has a distress, execution, attachment,
 sequestration or other legal process levied, enforced or sued on or against
 all or substantially all its assets and such secured party maintains
 possession, or any such process is not dismissed, discharged, stayed or
 restrained, in each case within 30 days thereafter; (8) causes or is subject
 to any event with respect to it which, under the applicable laws of any
 jurisdiction, has an analogous effect to any of the events specified in
 clauses (1) to (7) (inclusive); or (9) takes any action in furtherance of, or
 indicating its consent to, approval of, or acquiescence in, any of the
 foregoing acts; or

	
 

	
 

	
 

	
 

	
(viii) Merger Without Assumption. The party or
any Credit Support Provider of such party consolidates or amalgamates with,
or merges with or into, or transfers all or substantially all its assets to,
another entity and, at the time of such consolidation, amalgamation, merger
or transfer: 

7

	
 

	
 

	
 

	
 

	
 

	
(1) the
 resulting, surviving or transferee entity fails to assume all the obligations
 of such party or such Credit Support Provider under this Agreement or any
 Credit Support Document to which it or its predecessor was a party by
 operation of law or pursuant to an agreement reasonably satisfactory to the
 other party to this Agreement; or

	
 

	
 

	
 

	
 

	
 

	
(2) the
 benefits of any Credit Support Document fail to extend (without the consent
 of the other party) to the performance by such resulting, surviving or
 transferee entity of its obligations under this Agreement.

	
 

	
 

	
 

	
 

	
 

	
 

(b) Termination Events.
The occurrence at any time with respect to a party or, if applicable, any
Credit Support Provider of such party or any Specified Entity of such party of
any event specified below constitutes an Illegality if the event is specified
in (i) below, a Tax Event if the event is specified in (ii) below or a Tax
Event Upon Merger if the event is specified in (iii) below, and, if specified
to be applicable, a Credit Event Upon Merger if the event is specified pursuant
to (iv) below or an Additional Termination Event if the event is specified
pursuant to (v) below:

	
 

	
 

	
 

	
 

	
(i) Illegality.
 Due to the adoption of, or any change in, any applicable law after the date
 on which a Transaction is entered into, or due to the promulgation of, or any
 change in, the interpretation by any court, tribunal or regulatory authority
 with competent jurisdiction of any applicable law after such date, it becomes
 unlawful (other than as a result of a breach by the party of Section 4(b))
 for such party (which will be the Affected Party):

	
 

	
 

	
 

	
 

	
 

	
(1) to
 perform any absolute or contingent obligation to make a payment or delivery
 or to receive a payment or delivery in respect of such Transaction or to
 comply with any other material provision of this Agreement relating to such
 Transaction; or

	
 

	
 

	
 

	
 

	
 

	
(2) to
 perform, or for any Credit Support Provider of such party to perform, any
 contingent or other obligation which the party (or such Credit Support
 Provider) has under any Credit Support Document relating to such Transaction;

	
 

	
 

	
 

	
 

	
(ii) Tax Event. Due to
 (x) any action taken by a taxing authority, or brought in a court of
 competent jurisdiction, on or after the date on which a Transaction is
 entered into (regardless of whether such action is taken or brought with
 respect to a party to this Agreement) or (y) a Change in Tax Law, the party
 (which will be the Affected Party) will, or there is a substantial likelihood
 that it will, on the next succeeding Scheduled Payment Date (1) be required
 to pay to the other party an additional amount in respect of an Indemnifiable
 Tax under Section 2(d)(i)(4) (except in respect of interest under Section
 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount is
 required to be deducted or withheld for or on account of a Tax (except in
 respect of interest under Section 2(e), 6(d)(ii) or 6(e)) and no additional
 amount is required to be paid in respect of such Tax under Section 2(d)(i)(4)
 (other than by reason of Section 2(d)(i)(4)(A) or (B));

	
 

	
 

	
 

	
 

	
(iii) Tax Event Upon Merger.
 The party (the “Burdened Party”) on the next succeeding Scheduled Payment
 Date will either (1) be required to pay an additional amount in respect of an
 Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest
 under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an
 amount has been deducted or withheld for or on account of any Indemnifiable
 Tax in respect of which the other party is not required to pay an additional
 amount (other than by reason of Section 2(d)(i)(4)(A) or (B)), in either case
 as a result of a party consolidating or amalgamating with, or merging with or
 into, or 

8

	
 

	
 

	
 

	
transferring
 all or substantially all its assets to, another entity (which will be the
 Affected Party) where such action does not constitute an event described in
 Section 5(a)(viii);

	
 

	
 

	
 

	
(iv) Credit Event
 Upon Merger. If “Credit Event Upon Merger” is specified
 in the Schedule as applying to the party, such party (“X”), any Credit
 Support Provider of X or any applicable Specified Entity of X consolidates or
 amalgamates with, or merges with or into, or transfers all or substantially
 all its assets, to, another entity and such action does not constitute an
 event described in Section 5(a)(viii) but the creditworthiness of the
 resulting, surviving or transferee entity is materially weaker than that of
 X, such Credit Support Provider or such Specified Entity, as the case may be,
 immediately prior to such action (and, in such event, X or its successor or
 transferee, as appropriate, will be the Affected Party); or

	
 

	
 

	
 

	
 

	
(v) Additional
 Termination Event. If any “Additional Termination
 Event” is specified in the Schedule or any Confirmation as applying, the
 occurrence of such event (and, in such event, the Affected Party or Affected
 Parties shall be as specified for such Additional Termination Event in the
 Schedule or such Confirmation).

(c) Event of Default and Illegality.
If an event or circumstance which would otherwise constitute or give rise to an
Event of Default also constitutes an Illegality, it will be treated as an
Illegality and will not constitute an Event of Default.

	
 

	
 

	
6.

	
Early Termination

(a) Right to Terminate Following Event
of Default. If at any time an Event of Default with respect to a
party (the “Defaulting Party”) has occurred and is then continuing, the other
party (the “Non-defaulting Party”) may, by not more than 20 days notice to the
Defaulting Party specifying the relevant Event of Default, designate a day not
earlier than the day such notice is effective as an Early Termination Date in
respect of all outstanding Transactions. If, however, “Automatic Early
Termination” is specified in the Schedule as applying to a party, then an Early
Termination Date in respect of all outstanding Transactions will occur
immediately upon the occurrence with respect to such party of an Event of
Default specified in Section 5(a)(vii)(1), (3), (5), (6) or, to the extent
analogous thereto, (8), and as of the time immediately preceding the
institution of the relevant proceeding or the presentation of the relevant
petition upon the occurrence with respect to such party of an Event of Default
specified in Section 5(a)(vii)(4) or, to the extent analogous thereto, (8).

(b) Right to Terminate Following Termination Event.

	
 

	
 

	
 

	
(i) Notice. If a
 Termination Event occurs, an Affected Party will, promptly upon becoming
 aware of it, notify the other party, specifying the nature of that
 Termination Event and each Affected Transaction and will also give such other
 information about that Termination Event as the other party may reasonably
 require.

	
 

	
 

	
 

	
(ii) Transfer to Avoid Termination
 Event. If either an Illegality under Section 5(b)(i)(1) or a
 Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
 Merger occurs and the Burdened Party is the Affected Party, the Affected
 Party will, as a condition to its right to designate an Early Termination
 Date under Section 6(b)(iv), use all reasonable efforts (which will not
 require such party to incur a loss, excluding immaterial, incidental
 expenses) to transfer within 20 days after it gives notice under Section
 6(b)(i) all its rights and obligations under this Agreement in respect of the
 Affected Transactions to another of its Offices or Affiliates so that such
 Termination Event ceases to exist.

9

	
 

	
 

	
 

	
If the Affected Party is
 not able to make such a transfer it will give notice to the other party to
 that effect within such 20 day period, whereupon the other party may effect
 such a transfer within 30 days after the notice is given under Section
 6(b)(i).

	
 

	
 

	
 

	
Any such transfer by a
 party under this Section 6(b)(ii) will be subject to and conditional upon the
 prior written consent of the other party, which consent will not be withheld
 if such other party’s policies in effect at such time would permit it to
 enter into transactions with the transferee on the terms proposed.

	
 

	
 

	
 

	
(iii) Two Affected
 Parties. If an Illegality under Section 5(b)(i)(1) or a
 Tax Event occurs and there are two Affected Parties, each party will use all
 reasonable efforts to reach agreement within 30 days after notice thereof is
 given under Section 6(b)(i) on action to avoid that Termination Event.

	
 

	
 

	
 

	
(iv) Right to
 Terminate. If:

	
 

	
 

	
 

	
 

	
 

	
(1) a
 transfer under Section 6(b)(ii) or an agreement under Section 6(b)(iii), as
 the case may be, has not been effected with respect to all Affected
 Transactions within 30 days after an Affected Party gives notice under
 Section 6(b)(i); or

	
 

	
 

	
 

	
 

	
 

	
(2) an
 Illegality under Section 5(b)(i)(2), a Credit Event Upon Merger or an
 Additional Termination Event occurs, or a Tax Event Upon Merger occurs and
 the Burdened Party is not the Affected Party,

	
 

	
 

	
 

	
either party in the case
 of an Illegality, the Burdened Party in the case of a Tax Event Upon Merger,
 any Affected Party in the case of a Tax Event or an Additional Termination
 Event if there is more than one Affected Party, or the party which is not the
 Affected Party in the case of a Credit Event Upon Merger or an Additional
 Termination Event if there is only one Affected Party may, by not more than
 20 days notice to the other party and provided that the relevant Termination
 Event is then continuing, designate a day not earlier than the day such notice
 is effective as an Early Termination Date in respect of all Affected
 Transactions.

(c) Effect of Designation.

	
 

	
 

	
 

	
(i) If
 notice designating an Early Termination Date is given under Section 6(a) or
 (b), the Early Termination Date will occur on the date so designated, whether
 or not the relevant Event of Default or Termination Event is then continuing.

	
 

	
 

	
 

	
(ii) Upon
 the occurrence or effective designation of an Early Termination Date, no
 further payments or deliveries under Section 2(a)(i) or 2(e) in respect of
 the Terminated Transactions will be required to be made, but without
 prejudice to the other provisions of this Agreement. The amount, if any,
 payable in respect of an Early Termination Date shall be determined pursuant
 to Section 6(e).

	
 

	
 

	
(d) Calculations.

	
 

	
 

	
(i) Statement.
 On or as soon as reasonably practicable following the occurrence of an Early
 Termination Date, each party will make the calculations on its part, if any,
 contemplated by Section 6(e) and will provide to the other party a statement
 (1) showing, in reasonable detail, such calculations (including all relevant
 quotations and specifying any amount payable under

10

	
 

	
 

	
 

	
Section
 6(e)) and (2) giving details of the relevant account to which any amount
 payable to it is to be paid. In the absence of written confirmation from the
 source of a quotation obtained in determining a Market Quotation, the records
 of the party obtaining such quotation will be conclusive evidence of the
 existence and accuracy of such quotation.

	
 

	
 

	
 

	
(ii) Payment Date.
 An amount calculated as being due in respect of any Early Termination Date
 under Section 6(e) will be payable on the day that notice of the amount
 payable is effective (in the case of an Early Termination Date which is
 designated or occurs as a result of an Event of Default) and on the day which
 is two Local Business Days after the day on which notice of the amount
 payable is effective (in the case of an Early Termination Date which is
 designated as a result of a Termination Event). Such amount will be paid
 together with (to the extent permitted under applicable law) interest thereon
 (before as well as after judgment) in the Termination Currency, from (and
 including) the relevant Early Termination Date to (but excluding) the date
 such amount is paid, at the Applicable Rate. Such interest will be calculated
 on the basis of daily compounding and the actual number of days elapsed.

(e) Payments on Early Termination.
If an Early Termination Date occurs, the following provisions shall apply based
on the parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the
“Second Method”. If the parties fail to designate a payment measure or payment
method in the Schedule, it will be deemed that “Market Quotation” or the
“Second Method”, as the case may be, shall apply. The amount, if any, payable
in respect of an Early Termination Date and determined pursuant to this Section
will be subject to any Set-off.

	
 

	
 

	
 

	
 

	
(i) Events of
 Default. If the Early Termination Date results from an
 Event of Default:

	
 

	
 

	
 

	
 

	
 

	
(1) First Method and Market Quotation. If
 the First Method and Market Quotation apply, the Defaulting Party will pay to
 the Non-defaulting Party the excess, if a positive number, of (A) the sum of
 the Settlement Amount (determined by the Non-defaulting Party) in respect of
 the Terminated Transactions and the Termination Currency Equivalent of the
 Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination
 Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

	
 

	
 

	
 

	
 

	
 

	
(2) First Method and Loss. If the First
 Method and Loss apply, the Defaulting Party will pay to the Non-defaulting
 Party, if a positive number, the Non-defaulting Party’s Loss in respect of
 this Agreement.

	
 

	
 

	
 

	
 

	
 

	
(3) Second Method and Market Quotation. If
 the Second Method and Market Quotation apply, an amount will be payable equal
 to (A) the sum of the Settlement Amount (determined by the Non-defaulting
 Party) in respect of the Terminated Transactions and the Termination Currency
 Equivalent of the Unpaid Amounts owing to the Non-defaulting Party less (B)
 the Termination Currency Equivalent of the Unpaid Amounts owing to the
 Defaulting Party. If that amount is a positive number, the Defaulting Party
 will pay it to the Non-defaulting Party; if it is a negative number, the
 Non-defaulting Party will pay the absolute value of that amount to the
 Defaulting Party.

	
 

	
 

	
 

	
 

	
 

	
(4) Second Method and Loss. If the Second
 Method and Loss apply, an amount will be payable equal to the Non-defaulting
 Party’s Loss in respect of this Agreement. If that amount is a positive
 number, the Defaulting Party will pay it to the Non-defaulting 

11

	
 

	
 

	
 

	
 

	
 

	
Party; if it
 is a negative number, the Non-defaulting Party will pay the absolute value of
 that amount to the Defaulting Party.

	
 

	
 

	
 

	
 

	
(ii) Termination Events. If the Early
Termination Date results from a Termination Event: 

	
 

	
 

	
 

	
 

	
(1) One Affected Party. If there is one
 Affected Party, the amount payable will be determined in accordance with
 Section 6(e)(i)(3), if Market Quotation applies, or Section 6(e)(i)(4), if
 Loss applies, except that, in either case, references to the Defaulting Party
 and to the Non-defaulting Party will be deemed to be references to the
 Affected Party and the party which is not the Affected Party, respectively,
 and, if Loss applies and fewer than all the Transactions are being
 terminated, Loss shall be calculated in respect of all Terminated
 Transactions.

	
 

	
 

	
 

	
 

	
 

	
(2) Two Affected Parties. If there are two
 Affected Parties:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A) if
 Market Quotation applies, each party will determine a Settlement Amount in
 respect of the Terminated Transactions, and an amount will be payable equal
 to (I) the sum of (a) one-half of the difference between the Settlement Amount
 of the party with the higher Settlement Amount (“X”) and the Settlement
 Amount of the party with the lower Settlement Amount (“Y”) and (b) the
 Termination Currency Equivalent of the Unpaid Amounts owing to X less (II)
 the Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B) if Loss
 applies, each party will determine its Loss in respect of this Agreement (or,
 if fewer than all the Transactions are being terminated, in respect of all
 Terminated Transactions) and an amount will be payable equal to one-half of
 the difference between the Loss of the party with the higher Loss (“X”) and
 the Loss of the party with the lower Loss (“Y”).

If the amount
payable is a positive number, Y will pay it to X; if it is a negative number, X
will pay the absolute value of that amount to Y.

	
 

	
 

	
 

	
(iii) Adjustment for
 Bankruptcy. In circumstances where an Early Termination
 Date occurs because “Automatic Early Termination” applies in respect of a
 party, the amount determined under this Section 6(e) will be subject to such
 adjustments as are appropriate and permitted by law to reflect any payments
 or deliveries made by one party to the other under this Agreement (and
 retained by such other party) during the period from the relevant Early
 Termination Date to the date for payment determined under Section 6(d)(ii).

	
 

	
 

	
 

	
(iv) Pre-Estimate. The
 parties agree that if Market Quotation applies an amount recoverable under
 this Section 6(e) is a reasonable pre-estimate of loss and not a penalty.
 Such amount is payable for the loss of bargain and the loss of protection
 against future risks and except as otherwise provided in this Agreement
 neither party will be entitled to recover any additional damages as a
 consequence of such losses.

	 
	 

	7.
	Transfer

12

Subject to
Section 6(b)(ii), neither this Agreement nor any interest or obligation in or
under this Agreement may be transferred (whether by way of security or
otherwise) by either party without the prior written consent of the other
party, except that:

(a) a party
may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

(b) a party
may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

Any purported
transfer that is not in compliance with this Section will be void.

	
 

	
 

	
8.

	
Contractual Currency

(a) Payment in the Contractual Currency.
Each payment under this Agreement will be made in the relevant currency
specified in this Agreement for that payment (the “Contractual Currency”). To
the extent permitted by applicable law, any obligation to make payments under
this Agreement in the Contractual Currency will not be discharged or satisfied
by any tender in any currency other than the Contractual Currency, except to
the extent such tender results in the actual receipt by the party to which
payment is owed, acting in a reasonable manner and in good faith in converting
the currency so tendered into the Contractual Currency, of the full amount in
the Contractual Currency of all amounts payable in respect of this Agreement.
If for any reason the amount in the Contractual Currency so received falls
short of the amount in the Contractual Currency payable in respect of this
Agreement, the party required to make the payment will, to the extent permitted
by applicable law, immediately pay such additional amount in the Contractual
Currency as may be necessary to compensate for the shortfall. If for any reason
the amount in the Contractual Currency so received exceeds the amount in the
Contractual Currency payable in respect of this Agreement, the party receiving
the payment will refund promptly the amount of such excess.

(b) Judgments. To the
extent permitted by applicable law, if any judgment or order expressed in a
currency other than the Contractual Currency is rendered (i) for the payment of
any amount owing in respect of this Agreement, (ii) for the payment of any
amount relating to any early termination in respect of this Agreement or (iii)
in respect of a judgment or order of another court for the payment of any
amount described in (i) or (ii) above, the party seeking recovery, after
recovery in full of the aggregate amount to which such party is entitled
pursuant to the judgment or order, will be entitled to receive immediately from
the other party the amount of any shortfall of the Contractual Currency
received by such party as a consequence of sums paid in such other currency and
will refund promptly to the other party any excess of the Contractual Currency
received by such party as a consequence of sums paid in such other currency if
such shortfall or such excess arises or results from any variation between the
rate of exchange at which the Contractual Currency is converted into the
currency of the judgment or order for the purposes of such judgment or order
and the rate of exchange at which such party is able, acting in a reasonable
manner and in good faith in converting the currency received into the
Contractual Currency, to purchase the Contractual Currency with the amount of
the currency of the judgment or order actually received by such party. The term
“rate of exchange” includes, without limitation, any premiums and costs of
exchange payable in connection with the purchase of or conversion into the
Contractual Currency.

(c) Separate Indemnities.
To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this
Agreement, will be enforceable

13

as separate
and independent causes of action, will apply notwithstanding any indulgence
granted by the party to which any payment is owed and will not be affected by
judgment being obtained or claim or proof being made for any other sums payable
in respect of this Agreement.

(d) Evidence of Loss. For
the purpose of this Section 8, it will be sufficient for a party to demonstrate
that it would have suffered a loss had an actual exchange or purchase been
made.

	
 

	
 

	
9.

	
Miscellaneous

(a) Entire Agreement.
This Agreement constitutes the entire agreement and understanding of the
parties with respect to its subject matter and supersedes all oral
communication and prior writings with respect thereto.

(b) Amendments. No
amendment, modification or waiver in respect of this Agreement will be
effective unless in writing (including a writing evidenced by a facsimile
transmission) and executed by each of the parties or confirmed by an exchange
of telexes or electronic messages on an electronic messaging system.

(c) Survival of Obligations.
Without prejudice to Sections 2(a)(iii) and 6(c)(ii), the obligations of the
parties under this Agreement will survive the termination of any Transaction.

(d) Remedies Cumulative.
Except as provided in this Agreement, the rights, powers, remedies and
privileges provided in this Agreement are cumulative and not exclusive of any
rights, powers, remedies and privileges provided by law.

(e) Counterparts and Confirmations.

	
 

	
 

	
 

	
(i) This
 Agreement (and each amendment, modification and waiver in respect of it) may
 be executed and delivered in counterparts (including by facsimile
 transmission), each of which will be deemed an original.

	
 

	
 

	
 

	
(ii) The
 parties intend that they are legally bound by the terms of each Transaction
 from the moment they agree to those terms (whether orally or otherwise). A
 Confirmation shall be entered into as soon as practicable and may be executed
 and delivered in counterparts (including by facsimile transmission) or be
 created by an exchange of telexes or by an exchange of electronic messages on
 an electronic messaging system, which in each case will be sufficient for all
 purposes to evidence a binding supplement to this Agreement. The parties will
 specify therein or through another effective means that any such counterpart,
 telex or electronic message constitutes a Confirmation.

(f) No Waiver of Rights.
A failure or delay in exercising any right, power or privilege in respect of
this Agreement will not be presumed to operate as a waiver, and a single or
partial exercise of any right, power or privilege will not be presumed to
preclude any subsequent or further exercise, of that right, power or privilege
or the exercise of any other right, power or privilege.

(g) Headings. The
headings used in this Agreement are for convenience of reference only and are
not to affect the construction of or to be taken into consideration in
interpreting this Agreement.

	 
	 

	10.
	Offices; Multibranch Parties

14

(a) If Section
10(a) is specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to
the other party that, notwithstanding the place of booking office or
jurisdiction of incorporation or organisation of such party, the obligations of
such party are the same as if it had entered into the Transaction through its
head or home office. This representation will be deemed to be repeated by such
party on each date on which a Transaction is entered into.

(b) Neither
party may change the Office through which it makes and receives payments or
deliveries for the purpose of a Transaction without the prior written consent
of the other party.

(c) If a party
is specified as a Multibranch Party in the Schedule, such Multibranch Party may
make and receive payments or deliveries under any Transaction through any
Office listed in the Schedule, and the Office through which it makes and
receives payments or deliveries with respect to a Transaction will be specified
in the relevant Confirmation.

	
 

	
 

	
11.

	
Expenses

A Defaulting
Party will, on demand, indemnify and hold harmless the other party for and
against all reasonable out-of-pocket expenses, including legal fees and Stamp
Tax, incurred by such other party by reason of the enforcement and protection
of its rights under this Agreement or any Credit Support Document to which the
Defaulting Party is a party or by reason of the early termination of any
Transaction, including, but not limited to, costs of collection.

	
 

	
 

	
12.

	
Notices

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

	
 

	
 

	
 

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

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

15

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

	
 

	
 

	
13.

	
Governing Law and Jurisdiction

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

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

	
 

	
 

	
 

	
(i) submits
 to the jurisdiction of the English courts, if this Agreement is expressed to
 be governed by English law, or to the non-exclusive jurisdiction of the
 courts of the State of New York and the United States District Court located
 in the Borough of Manhattan in New York City, if this Agreement is expressed
 to be governed by the laws of the State of New York; and

	
 

	
 

	
 

	
(ii) waives
 any objection which it may have at any time to the laying of venue of any
 Proceedings brought in any such court, waives any claim that such Proceedings
 have been brought in an inconvenient forum and further waives the right to
 object, with respect to such Proceedings, that such court does not have any
 jurisdiction over such party.

Nothing in
this Agreement precludes either party from bringing Proceedings in any other
jurisdiction (outside, if this Agreement is expressed to be governed by English
law, the Contracting States, as defined in Section 1(3) of the Civil
Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

(c) Service of Process.
Each party irrevocably appoints the Process Agent (if any) specified opposite
its name in the Schedule to receive, for it and on its behalf, service of
process in any Proceedings. If for any reason any party’s Process Agent is unable
to act as such, such party will promptly notify the other party and within 30
days appoint a substitute process agent acceptable to the other party. The
parties irrevocably consent to service of process given in the manner provided
for notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law.

(d) Waiver of Immunities.
Each party irrevocably waives, to the fullest extent permitted by applicable
law, with respect to itself and its revenues and assets (irrespective of their
use or intended use), all immunity on the grounds of sovereignty or other
similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief by
way of injunction, order for specific performance or for recovery of property,
(iv) attachment of its assets (whether before or after judgment) and (v)
execution or enforcement of any judgment to which it or its revenues or assets
might otherwise be entitled in any Proceedings in the courts of any jurisdiction
and irrevocably agrees, to the extent permitted by applicable law, that it will
not claim any such immunity in any Proceedings.

	
 

	
 

	
14.

	
Definitions

As used in this Agreement:

“Additional
Termination Event” has the meaning specified in
Section 5(b).

16

“Affected Party”
has the meaning specified in Section 5(b).

“Affected
Transactions” means (a) with respect to any
Termination Event consisting of an Illegality, Tax Event or Tax Event Upon
Merger, all Transactions affected by the occurrence of such Termination Event
and (b) with respect to any other Termination Event, all Transactions.

“Affiliate”
means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under
common control with the person. For this purpose, “control” of any entity or
person means ownership of a majority of the voting power of the entity or
person.

“Applicable Rate”
means:

(a) in respect
of obligations payable or deliverable (or which would have been but for Section
2(a)(iii)) by a Defaulting Party, the Default Rate;

(b) in respect
of an obligation to pay an amount under Section 6(e) of either party from and
after the date (determined in accordance with Section 6(d)(ii)) on which that
amount is payable, the Default Rate;

(c) in respect
of all other obligations payable or deliverable (or which would have been but
for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default Rate; and

(d) in all
other cases, the Termination Rate.

“Burdened Party”
has the meaning specified in Section 5(b).

“Change in Tax Law”
means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation
of any law) that occurs on or after the date on which the relevant Transaction
is entered into.

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

“Credit Event Upon
Merger” has the meaning specified in Section 5(b).

“Credit Support
Document” means any agreement or instrument that
is specified as such in this Agreement.

“Credit Support
Provider” has the meaning specified in the
Schedule.

“Default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the relevant payee (as certified by it) if it were to fund or
of funding the relevant amount plus 1% per annum.

“Defaulting Party”
has the meaning specified in Section 6(a).

“Early Termination
Date” means the date determined in accordance with
Section 6(a) or 6(b)(iv).

“Event of Default” has the meaning specified in Section 5(a)
and, if applicable, in the Schedule.

17

“Illegality” has the meaning specified in Section
5(b).

“Indemnifiable Tax”
means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the
recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or
having been organised, present or engaged in a trade or business in such
jurisdiction, or having or having had a permanent establishment or fixed place
of business in such jurisdiction, but excluding a connection arising solely
from such recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

“law”
includes any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and “lawful” and
“unlawful” will be construed accordingly.

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s)
specified in the relevant Confirmation or, if not so specified, as otherwise
agreed by the parties in writing or determined pursuant to provisions
contained, or incorporated by reference, in this Agreement, (b) in relation to
any other payment, in the place where the relevant account is located and, if
different, in the principal financial centre, if any, of the currency of such
payment, (c) in relation to any notice or other communication, including notice
contemplated under Section 5(a)(i), in the city specified in the address for
notice provided by the recipient and, in the case of a notice contemplated by
Section 2(b), in the place where the relevant new account is to be located and
(d) in relation to Section 5(a)(v)(2), in the relevant locations for
performance with respect to such Specified Transaction.

“Loss”
means, with respect to this Agreement or one or more Terminated Transactions,
as the case may be, and a party, the Termination Currency Equivalent of an
amount that party reasonably determines in good faith to be its total losses
and costs (or gain, in which case expressed as a negative number) in connection
with this Agreement or that Terminated Transaction or group of Terminated
Transactions, as the case may be, including any loss of bargain, cost of
funding or, at the election of such party but without duplication, loss or cost
incurred as a result of its terminating, liquidating, obtaining or reestablishing
any hedge or related trading position (or any gain resulting from any of them).
Loss includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made,
except, so as to avoid duplication, if Section 6(e)(i)(1) or (3) or
6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
out-of-pocket expenses referred to under Section 11. A party will determine its
Loss as of the relevant Early Termination Date, or, if that is not reasonably
practicable, as of the earliest date thereafter as is reasonably practicable. A
party may (but need not) determine its Loss by reference to quotations of
relevant rates or prices from one or more leading dealers in the relevant
markets.

“Market Quotation” means, with respect to one or more
Terminated Transactions and a party making the determination, an amount
determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive
number) in consideration of an agreement between such party (taking into account
any existing Credit Support Document with respect to the obligations of such
party) and the quoting Reference Market-maker to enter into a transaction (the
“Replacement

18

Transaction”)
that would have the effect of preserving for such party the economic equivalent
of any payment or delivery (whether the underlying obligation was absolute or
contingent and assuming the satisfaction of each applicable condition
precedent) by the parties under Section 2(a)(i) in respect of such Terminated
Transaction or group of Terminated Transactions that would, but for the
occurrence of the relevant Early Termination Date, have been required after
that date. For this purpose, Unpaid Amounts in respect of the Terminated
Transaction or group of Terminated Transactions are to be excluded but, without
limitation, any payment or delivery that would, but for the relevant Early
Termination Date, have been required (assuming satisfaction of each applicable
condition precedent) after that Early Termination Date is to be included. The
Replacement Transaction would be subject to such documentation as such party
and the Reference Market-maker may, in good faith, agree. The party making the
determination (or its agent) will request each Reference Market-maker to
provide its quotation to the extent reasonably practicable as of the same day
and time (without regard to different time zones) on or as soon as reasonably
practicable after the relevant Early Termination Date. The day and time as of
which those quotations are to be obtained will be selected in good faith by the
party obliged to make a determination under Section 6(e), and, if each party is
so obliged, after consultation with the other. If more than three quotations
are provided, the Market Quotation will be the arithmetic mean of the
quotations, without regard to the quotations having the highest and lowest
values. If exactly three such quotations are provided, the Market Quotation
will be the quotation remaining after disregarding the highest and lowest
quotations. For this purpose, if more than one quotation has the same highest
value or lowest value, then one of such quotations shall be disregarded. If
fewer than three quotations are provided, it will be deemed that the Market
Quotation in respect of such Terminated Transaction or group of Terminated
Transactions cannot be determined.

“Non-default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to
fund the relevant amount.

“Non-defaulting
Party” has the meaning specified in Section 6(a).

“Office”
means a branch or office of a party, which may be such party’s head or home
office.

“Potential Event of
Default” means any event which, with the giving of
notice or the lapse of time or both, would constitute an Event of Default.

“Reference
Market-makers” means four leading dealers in the
relevant market selected by the party determining a Market Quotation in good
faith (a) from among dealers of the highest credit standing which satisfy all
the criteria that such party applies generally at the time in deciding whether
to offer or to make an extension of credit and (b) to the extent practicable,
from among such dealers having an office in the same city.

“Relevant
Jurisdiction” means, with respect to a party, the
jurisdictions (a) in which the party is incorporated, organised, managed and
controlled or considered to have its seat, (b) where an Office through which
the party is acting for purposes of this Agreement is located, (c) in which the
party executes this Agreement and (d) in relation to any payment, from or
through which such payment is made.

“Scheduled Payment
Date” means a date on which a payment or delivery
is to be made under Section 2(a)(i) with respect to a Transaction.

“Set-off”
means set-off, offset, combination of accounts, right of retention or
withholding or similar right or requirement to which the payer of an amount
under Section 6 is entitled or subject (whether

19

arising under
this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of:

(a) the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

(b) such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

“Specified Entity”
has the meaning specified in the Schedule.

“Specified
Indebtedness” means, subject to the Schedule, any
obligation (whether present or future, contingent or otherwise, as principal or
surety or otherwise) in respect of borrowed money.

“Specified
Transaction” means, subject to the Schedule, (a)
any transaction (including an agreement with respect thereto) now existing or
hereafter entered into between one party to this Agreement (or any Credit
Support Provider of such party or any applicable Specified Entity of such
party) and the other party to this Agreement (or any Credit Support Provider of
such other party or any applicable Specified Entity of such other party) which
is a rate swap transaction, basis swap, forward rate transaction, commodity
swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, foreign exchange transaction, cap
transaction, floor transaction, collar transaction, currency swap transaction,
cross-currency rate swap transaction, currency option or any other similar
transaction (including any option with respect to any of these transactions),
(b) any combination of these transactions and (c) any other transaction
identified as a Specified Transaction in this Agreement or the relevant
confirmation.

“Stamp Tax”
means any stamp, registration, documentation or similar tax.

“Tax”
means any present or future tax, levy, impost, duty, charge, assessment or fee
of any nature (including interest, penalties and additions thereto) that is
imposed by any government or other taxing authority in respect of any payment
under this Agreement other than a stamp, registration, documentation or similar
tax.

“Tax Event”
has the meaning specified in Section 5(b).

“Tax Event Upon
Merger” has the meaning specified in Section 5(b).

“Terminated
Transactions” means
with respect to any Early Termination Date (a) if resulting from a Termination
Event, all Affected Transactions and (b) if resulting from an Event of Default,
all Transactions (in either case) in effect immediately before the effectiveness
of the notice designating that Early Termination Date (or, if “Automatic Early
Termination” applies, immediately before that Early Termination Date).

“Termination
Currency” has the meaning specified in the
Schedule.

20

“Termination
Currency Equivalent” means, in respect of any
amount denominated in the Termination Currency, such Termination Currency
amount and, in respect of any amount denominated in a currency other than the
Termination Currency (the “Other Currency”), the amount in the Termination
Currency determined by the party making the relevant determination as being
required to purchase such amount of such Other Currency as at the relevant
Early Termination Date, or, if the relevant Market Quotation or Loss (as the
case may be), is determined as of a later date, that later date, with the
Termination Currency at the rate equal to the spot exchange rate of the foreign
exchange agent (selected as provided below) for the purchase of such Other
Currency with the Termination Currency at or about 11:00 a.m. (in the city in
which such foreign exchange agent is located) on such date as would be
customary for the determination of such a rate for the purchase of such Other
Currency for value on the relevant Early Termination Date or that later date. The
foreign exchange agent will, if only one party is obliged to make a
determination under Section 6(e), be selected in good faith by that party and
otherwise will be agreed by the parties.

“Termination Event”
means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

“Termination Rate”
means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if
it were to fund or of funding such amounts.

“Unpaid Amounts”
owing to any party means, with respect to an Early Termination Date, the
aggregate of (a) in respect of all Terminated Transactions, the amounts that
became payable (or that would have become payable but for Section 2(a)(iii)) to
such party under Section 2(a)(i) on or prior to such Early Termination Date and
which remain unpaid as at such Early Termination Date and (b) in respect of
each Terminated Transaction, for each obligation under Section 2(a)(i) which
was (or would have been but for Section 2(a)(iii)) required to be settled by
delivery to such party on or prior to such Early Termination Date and which has
not been so settled as at such Early Termination Date, an amount equal to the
fair market value of that which was (or would have been) required to be
delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to
(but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and
the actual number of days elapsed. The fair market value of any obligation
referred to in clause (b) above shall be reasonably determined by the party
obliged to make the determination under Section 6(e) or, if each party is so
obliged, it shall be the average of the Termination Currency Equivalents of the
fair market values reasonably determined by both parties.

21

IN WITNESS
WHEREOF the parties have executed this document on the respective dates
specified below with effect from the date specified on the first page of this
document.

	
 

	
 

	
 

	
 

	
 

	
USAA AUTO OWNER TRUST 20[ ]-[ ]

	
[____________________________]

	
 

	
 

	
 

	
 

	
   By: [___________________], not in its individual capacity
 but solely as owner trustee

	
 

	
 

	
 

	

	
 

	

	
(Name of Party)

	
 

	
(Name of Party)

	
 

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
By:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Name:

	
 

	
 

	
Name:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Title:

	
 

	
 

	
Title:

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Date:

	
 

	
 

	
Date:

	
 

	
 

	

	
 

	
 

	

22

SCHEDULE

TO THE

MASTER AGREEMENT

dated as of [     ]

between

[SWAP COUNTERPARTY]

(“Party A”)

and 

[USAA FEDERAL SAVINGS BANK] 

(“Party B”)

	
 

	
 

	
 

	
Part 1.

	
Termination Provisions

	
 

	
 

	
 

	
(a)

	
“Specified Entity”
 means in relation to Party A for the purpose of:-

	
 

	
 

	
 

	
 

	
 

	
Section
 5(a)(v), None Specified

	
 

	
 

	
Section
 5(a)(vi), None Specified

	
 

	
 

	
Section
 5(a)(vii), None Specified

	
 

	
 

	
Section
 5(b)(iv), None Specified

	
 

	
 

	
 

	
and in
 relation to Party B for the purpose of:-

	
 

	
 

	
 

	
 

	
Section
 5(a)(v), None Specified

	
 

	
 

	
Section
 5(a)(vi), None Specified

	
 

	
 

	
Section
 5(a)(vii), None Specified

	
 

	
 

	
Section
 5(b)(iv), None Specified

	
 

	
 

	
 

	
(b)

	
“Specified Transaction”
 will have the meaning specified in Section 14 of this Agreement.

	
 

	
 

	
 

	
(c)

	
“Cross Default”
 applies to Party A and Party B. Section 5(a)(vi) is hereby amended by
 deleting in the seventh line thereof the words “, or becoming capable at such
 time of being declared,”.

	
 

	
 

	
 

	
(d)

	
“Specified Indebtedness”
 has the meaning specified in Section 14. 

	
 

	
 

	
 

	
(e)

	
“Threshold Amount”
 means, with respect to a party, the greater of (i) 3% of shareholder equity
 and (ii) U.S.[ ] (or the equivalent in another currency, currency unit or
 combination thereof).

	
 

	
 

	
 

	
(f)

	
“Credit Event Upon Merger”
 applies to Party A and Party B.

	
 

	
 

	
 

	
(g)

	
The “Automatic
 Early Termination” provisions of Section 6(a) will not apply to
 Party A and will not apply to Party B.

	
 

	
 

	
 

	
(h)

	
Payments on Early Termination.
 “Market
 Quotation” and “Second Method” will apply for the
 purpose of Section 6(e) of this Agreement.

	
 

	
 

	
 

	
(i)

	
“Termination Currency”
 means United States Dollars.

	
 

	
 

	
 

	
(j)

	
Additional Termination Event
 will not apply.

23

	
 

	
 

	
 

	
Part 2.

	
Tax Representations

	
 

	
 

	
 

	
(a)

	
Party A and Party B Payer Tax
 Representations. For the purpose of Section 3(e),
 each of Party A and Party B makes the following representation:-

	
 

	
 

	
 

	
 

	
It is not
 required by any applicable law, as modified by the practice of any relevant
 governmental revenue authority, of any Relevant Jurisdiction to make any
 deduction or withholding for or on account of any Tax from any payment (other
 than interest under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the
 other party under this Agreement. In making this representation, it may rely
 on (i) the accuracy of any representation made by the other party pursuant to
 Section 3(f); (ii) the satisfaction of the agreement of the other party
 contained in Section 4(a)(i) or 4(a)(iii) and the accuracy and effectiveness
 of any document provided by the other party pursuant to Section 4(a)(i) or
 4(a)(iii); and (iii) the satisfaction of the agreement of the other party
 contained in Section 4(d), provided that it shall not be a breach
 of this representation where reliance is placed on clause (ii) and the other
 party does not deliver a form or document under Section 4(a)(iii) by reason
 of material prejudice to its legal or commercial position.

	
 

	
 

	
 

	
(b)

	
Payee Tax Representations
 

	
 

	
 

	
 

	
 

	
(i)

	
For the
 purpose of Section 3(f), Party A makes the following representation:

	
 

	
 

	
 

	
 

	
 

	
It is a
 [          ] duly organized
 and incorporated under the laws of the
 [          ] and is an
 exempt recipient for United States tax purposes.

	
 

	
 

	
 

	
 

	
(ii)

	
For the
 purpose of Section 3(f), Party B makes the following representation:

	
 

	
 

	
 

	
 

	
 

	
It is a
 [          ] duly organized
 and incorporated under the laws of the
 [          ] and is an
 exempt recipient for United States tax purposes.

	
 

	
 

	
 

	
Part 3.

	
Agreement to Deliver Documents

	
 

	
 

	
 

	
For the
 purpose of Sections 4(a)(i) and (ii), each party agrees to deliver the
 following documents, as applicable:-

	
 

	
 

	
 

	
(a)

	
Tax forms,
 documents or certificates to be delivered are:- 

	
 

	
 

	
 

	
 

	
 

	
Party required

 to deliver

 document

	
 

	
Form/Document/Certificate

	
 

	
Date by which to be delivered

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
Party A and

 Party B

	
 

	
An executed
 United States Internal Revenue Service Form [W-9] (or any successor thereto).

	
 

	
(i) Upon
 the execution of this Agreement and (ii) promptly upon any Form [W-9] (or any
 successor thereto) previously provided by either party becoming obsolete or
 incorrect.

24

	
 

	
 

	
(b)

	
Other
 documents to be delivered are:-

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party required

 to deliver

 document

	
 

	
Form/Document/Certificate

	
 

	
Date by which to be delivered

	
 

	
Covered by

 Section 3(d)

 Representation

	

	
 

	

	
 

	

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party A

 and

 Party B

	
 

	
Either (1) a
 signature booklet containing secretary’s certificate and resolutions
 (“authorizing resolutions”) authorizing the party to enter into derivatives
 transactions of the type contemplated by the parties or (2) a secretary’s
 certificate, authorizing resolutions and incumbency certificate, in either
 case, for such party and any Credit Support Provider of such party reasonably
 satisfactory in form and substance to the other party.

	
 

	
Upon
 execution of this Agreement and as deemed necessary for any further
 documentation.

	
 

	
Yes

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party A

 and

 Party B

	
 

	
A copy of
 the annual report of such party containing audited consolidated financial
 statements for each such fiscal year, certified by independent certified
 public accountants and prepared in accordance with generally accepted
 accounting principles in the country in which such party is organized.

	
 

	
Upon
 reasonable request.

	
 

	
Yes

	
 

	
 

	
 

	
Part 4.

	
Miscellaneous

	
 

	
 

	
 

	
(a)

	
Addresses for Notices.
 For the purpose of Section 12(a):-

	
 

	
 

	
 

	
 

	
(i)

	
Address for
 notices or communications to Party A:-

	
 

	
 

	
 

	
 

	
 

	
[          ]

	
 

	
 

	
 

	
 

	
(ii)

	
Address for
 notices or communications to Party B:-

	
 

	
 

	
 

	
 

	
 

	
10750
 McDermott Freeway

	
 

	
 

	
San Antonio,
 Texas 78288

	
 

	
 

	
 

	
(b)

	
Process Agent. For
 the purpose of Section 13(c) of this Agreement, Party A irrevocably appoints
 as its Process Agent: [None]

	
 

	
 

	
 

	
 

	
For the
 purpose of Section 13(c) of this Agreement, Party B irrevocably appoints as
 its Process Agent: None.

	
 

	
 

	
 

	
(c)

	
Offices. The
 provisions of Section 10(a) will apply to Party A and to Party B.

	
 

	
 

	
 

	
(d)

	
Multibranch Party.
 For the purpose of Section 10(c):-

	
 

	
 

	
 

	
 

	
Party A is
 [not] a Multibranch Party. 

	
 

	
 

	
 

	
 

	
Party B is
 not a Multibranch Party.

	
 

	
 

	
 

	
(e)

	
“Calculation Agent”
 means Party A, unless an Event of Default has occurred and is continuing with
 respect to Party A in which case Party B or a Reference Market-maker selected
 by Party B shall be Calculation Agent.

25

	
 

	
 

	
 

	
(f)

	
“Credit Support Document”
 means with respect to Party A: and Party B: the Credit Support Annex.

	
 

	
 

	
 

	
(g)

	
“Credit
 Support Provider” means in relation to Party A: [None]

	
 

	
 

	
 

	
 

	
Credit
 Support Provider means in relation to Party B: None

	
 

	
 

	
 

	
(h)

	
Governing Law; Jurisdiction. This
 Agreement will be governed by and construed in accordance with the laws of
 the State of New York, without reference to choice of law doctrine. Section
 13(b) is amended by: (1) deleting “non-” from the second line of clause (i);
 and (2) deleting the final paragraph.

	
 

	
 

	
 

	
(i)

	
Waiver of Jury Trial.
 Each party waives, to the fullest extent permitted by applicable law, any
 right it may have to a trial by jury in respect of any Proceedings relating
 to this Agreement or any Credit Support Document.

	
 

	
 

	
 

	
(j)

	
Netting of Payments.
 Clause (ii) of Section 2(c) will [not] apply to any amounts payable with
 respect to Transactions from the date of this Agreement.

	
 

	
 

	
 

	
(k)

	
“Affiliate” has
 the meaning specified in Section 14. 

	
 

	
 

	
 

	
Part 5.

	
Other Provisions

	
 

	
 

	
 

	
(a)

	
Additional Representations.
 Section 3 is hereby amended by adding at the end thereof the following
 Subparagraphs:

	
 

	
 

	
 

	
 

	
(g)

	
It is an
 “Eligible Contract Participant” as defined in Section 1a (12) of the
 Commodity Exchange Act, as amended.

	
 

	
 

	
 

	
 

	
(h)

	
It is
 entering into this Agreement, any Credit Support Document to which it is a
 party, each Transaction and any other documentation relating to this
 Agreement or any Transaction as principal (and not as agent or in any other
 capacity, fiduciary or otherwise).

	
 

	
 

	
 

	
(b)

	
Setoff.

	
 

	
 

	
 

	
 

	
(i) Upon the occurrence or designation of
 an Early Termination Date on account of an Event of Default or Termination
 Event pursuant to Section 5(b)(iv) with respect to a party hereto (“Y”), any
 amount payable by the other party (“X”) under this Agreement, any Specified
 Transaction with Y, or in respect of any other matured, liquidated or
 terminated obligation to Y will, at the option of X (and without prior notice
 to Y), be reduced by its setoff and recoupment against any amount(s) payable
 by Y to X under this Agreement, any Specified Transaction with Y or in
 respect of any other matured, liquidated or terminated obligation of Y (and
 any such amount(s) payable by Y will be discharged promptly and in all
 respects to the extent it is so set off). X, as appropriate, will give
 notice to Y after any setoff and recoupment is effected under this paragraph.
 

	
 

	
 

	
 

	
 

	
(ii) For purposes of the foregoing, X shall
 be entitled to convert any obligation denominated in one currency into
 another at such rates of exchange as it deems appropriate in good faith and
 in a commercially reasonable manner, to convert any obligation to deliver
 non-cash property into an obligation to deliver cash in an amount determined
 by it as it deems appropriate in good faith and in a commercially reasonable
 manner, and amounts may be set off and recouped irrespective of the currency,
 place of payment or booking office of any obligation to or from Y. 

	
 

	
 

	
 

	
 

	
(iii) If an obligation is unascertained, X,
 as appropriate, may in good faith estimate that obligation and set off and
 recoup in respect of that estimate, subject to the relevant party’s
 accounting to the other(s) when the obligation is ascertained. 

26

	
 

	
 

	
 

	
 

	
(iv) Nothing in this
 subsection shall be effective to create a charge or other security interest.
 This subsection shall be without prejudice and in addition to any right of
 setoff, recoupment, combination of accounts, lien or other right to which any
 party or any of its Affiliates is at any time otherwise entitled (whether by
 operation of law, contract or otherwise).

	
 

	
 

	
 

	
(c)

	
Confirmations. Party
 A will deliver to Party B a Confirmation relating to each Transaction.

	
 

	
 

	
 

	
(d)

	
Relationship Between Parties.
 Each party will be deemed to represent to the other party on the date on
 which it enters into a Transaction that (absent a written agreement between
 the parties that expressly imposes affirmative obligations to the contrary
 for that Transaction):-

	
 

	
 

	
 

	
 

	
(i)

	
Non-Reliance. It
 is acting for its own account, and it has made its own independent decisions
 to enter into that Transaction and as to whether that Transaction is
 appropriate or proper for it based upon its own judgment and upon advice from
 such advisers as it has deemed necessary. It is not relying on any
 communication (written or oral) of the other party as investment advice or as
 a recommendation to enter into that Transaction; it being understood that
 information and explanations related to the terms and conditions of a
 Transaction shall not be considered investment advice or a recommendation to
 enter into that Transaction. No communication (written or oral) received from
 the other party shall be deemed to be an assurance or guarantee as to the
 expected results of that Transaction.

	
 

	
 

	
 

	
 

	
(ii)

	
Assessment and Understanding.
 It is capable of assessing the merits of and understanding (on its own behalf
 or through independent professional advice), and understands and accepts, the
 terms, conditions and risks of that Transaction. It is also capable of
 assuming, and assumes, the risks of that Transaction.

	
 

	
 

	
 

	
 

	
(iii)

	
Status of Parties.
 The other party is not acting as a fiduciary for or an adviser to it in
 respect of that Transaction.

          IN
WITNESS WHEREOF, the parties have executed this
Schedule by their duly authorized officers as of the date hereof.

	
 

	
 

	
 

	
 

	
[SWAP COUNTERPARTY]

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
Date:

	
 

	
 

	
 

	
 

	
[USAA FEDERAL SAVINGS BANK]

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
Date:

27

CREDIT
SUPPORT ANNEX

Elections and Variables

between

[COUNTERPARTY]

(referred to herein as “Party A”)

and

[USAA
FEDERAL SAVINGS BANK]
(referred to herein as “Party B”)

dated as of [     ]

Paragraph 13.
Elections and Variables 

	
 

	
 

	
 

	
 

	
(a)

	
Security Interest for “Obligations.” The
 term “Obligations”
 as used in this Annex includes the following additional obligations.

	
 

	
 

	
 

	
 

	
 

	
(i)

	
With respect
 to Party A:          Not
 Applicable

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
With respect
 to Party B:          Not
 Applicable

	
 

	
 

	
 

	
 

	
(b)

	
Credit Support Obligations.

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Delivery Amount, Return Amount and Credit
 Support Amount.

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
“Delivery Amount”
 has the meaning specified in Paragraph 3(a).

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
“Return Amount” has
 the meaning specified in Paragraph 3(b).

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
“Credit Support Amount”
 has the meaning specified in Paragraph 3.

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Eligible Collateral.
 The following items will qualify as “Eligible Collateral” for the party specified:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party A

 and Party B

	
 

	
Remaining
 Maturity

	
 

	
Valuation

 Percentage

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
 

	
US-CASH

	
 

	
[x]

	
 

	
N/A

	
 

	
100%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
[(B)

	
 

	
US-TBILL,
 US-TNOTE, US-TBOND, US-TIPS

	
 

	
[x]

	
 

	
Less than 1
 yr

	
 

	
99%

	
 

	
 

	
 

	
 

	
 

	
 

	
Between 1
 and 5 yrs

	
 

	
98%

	
 

	
 

	
 

	
 

	
 

	
 

	
Between 5
 and 10 yrs

	
 

	
96%

	
 

	
 

	
 

	
 

	
 

	
 

	
Between 10
 and 20 yrs

	
 

	
95%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
 

	
US-STRIP

	
 

	
[x]

	
 

	
All
 maturities

	
 

	
85%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
 

	
US-GNMA,
 US-FNMA, US-FHLMC, US-NCAD, US-NCADN

	
 

	
[x]

	
 

	
Less than 1
 yr

	
 

	
99%

	
 

	
 

	
 

	
 

	
 

	
Between 1
 and 5 yrs

	
 

	
98%

	
 

	
 

	
 

	
 

	
 

	
 

	
Between 5 and
 10 yrs

	
 

	
96%

	
 

	
 

	
 

	
 

	
 

	
 

	
Between 10
 and 30 yrs

	
 

	
95%

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(E)

	
 

	
Any other
 obligation agreed upon in writing by both parties. [Tailor to add specific securities,
 when appropriate].

	
 

	
[x]

	
 

	
[x]

	
 

	
TBD]

For purposes
of this Paragraph 13(b)(ii):

	
 

	
 

	
 

	
The
 definitions used in this Annex are set forth in the ISDA publication
 “Collateral Asset Definitions” (First-Edition – June 2003), which are deemed
 incorporated by reference herein.

28

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Other Eligible Support.
 The following items will qualify as “Other Eligible Support” for Party A and for
 Party B: Not Applicable. 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
Thresholds. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
“Independent Amount”
 means: [Not Applicable][$          ]. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
“Threshold” means,
 with respect to Party A and Party B. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
“Minimum Transfer Amount”
 means with respect to Party A and Party B: [$250,000]; provided, however,
 that if the party’s Threshold is zero, the Minimum Transfer Amount is zero;
 further provided, however, that for so long as an Event of Default or
 Termination Event in respect of Party B shall have occurred and be
 continuing, the Minimum Transfer Amount with respect to such party shall be
 zero. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(D)

	
Rounding. The
 Delivery Amount will be rounded up and the Return Amount will be rounded down
 to the nearest integral multiple of $10,000, respectively. 

	
 

	
 

	
 

	
 

	
(c)

	
Valuation and Timing. 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
“Valuation Agent”
 means, for purposes of Paragraphs 3 and 5, the party making the demand under
 Paragraph 3, and, for purposes of Paragraph 6(d), the Secured Party receiving
 or deemed to receive the Distributions or the Interest Amount, as applicable,
 unless otherwise specified here: These rules will apply. In addition, the
 Valuation Agent will be the Secured Party for purposes of calculating Value
 in connection with substitutions pursuant to Paragraph 4(d); provided that where there has occurred
 and is continuing an Event of Default, or Specified Condition in respect of
 such party, it shall not be the Valuation Agent and the other party shall be
 the Valuation Agent. 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
“Valuation Date”
 means each Local Business Day. 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
“Valuation Time”
 means the close of business on the Local Business Day before the Valuation
 Date or date of calculation, as applicable; provided that the calculations of
 Value and Exposure will be made as of approximately the same time on the same
 date. 

	
 

	
 

	
 

	
 

	
 

	
(iv)

	
“Notification Time”
 means 1:00 p.m., New York time, on a Local Business Day. 

	
 

	
 

	
 

	
 

	
(d)

	
Conditions Precedent and Secured Party’s
 Rights and Remedies. The following Termination
 Event(s) will be a “Specified
 Condition” for the party specified (that party being the
 Affected Party if the Termination Event occurs with respect to that party)
 for the purposes of the Paragraph specified below: 

	
 

	
 

	
 

	
 

	
Party A

	
Party B

	
 

	
 

	
 

	
Illegality

	
X

	
X

	
Tax Event

	
X

	
X

	
Tax Event
 Upon Merger

	
X

	
X

	
Additional
 Termination Events

	
X

	
X

	
 

	
 

	
 

	
(e)

	
Substitution. 

	
 

	
 

	
 

	
 

	
(i)

	
“Substitution Date”
 means the Local Business Day in New York on which the Secured Party is able
 to confirm irrevocable receipt of the Substitute Credit Support, provided
 that (x) such receipt is confirmed before 3:00 p.m. (New York time) on such
 Local Business Day in New York and (y) the Secured Party has received, before
 1:00 p.m. (New York time) on the immediately preceding Local Business Day in
 New York, the notice of substitution described in Paragraph 4(d)(i). 

	
 

	
 

	
 

	
 

	
(ii)

	
Consent. The
 Pledgor is not required to obtain the Secured Party’s consent for any
 substitution pursuant to Paragraph 4(d). 

	 
	 
	 

	(f)
	Dispute Resolution. 

29

	
 

	
 

	
 

	
 

	
 

	
(i)

	
“Resolution Time”
 means 1:00 p.m., New York time, on the Local Business Day following the date
 on which the notice is given that gives rise to a dispute under Paragraph 5. 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Value. For the
 purpose of Paragraphs 5(i)(c) and 5(ii), the Value of Posted Credit Support
 will be calculated as follows: For Cash, the U.S. dollar value thereof, and
 for each item of Eligible Collateral (except for Cash), an amount in U.S.
 dollars equal to the product of (i) either (A) the average of the bid side
 quotes provided on such date by two or more recognized dealers selected in
 good faith by the Valuation Agent, or, if such quotes are available on such
 date, the average of the bid quotes as of the day next preceding such date on
 which such quotes were available or (B) the most recent publicly available
 bid price for such security as reported by a quotation service or in a medium
 selected in good faith and in a commercially reasonable manner by Secured
 Party, multiplied by (ii) the percentage figure listed in Paragraph 13(b)(ii)
 hereof with respect to such security. 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Alternative.
 The provisions of Paragraph 5 will apply. 

	
 

	
 

	
 

	
 

	
(g)

	
Holding and Using Posted Collateral.
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Eligibility to Hold Posted Collateral;
 Custodians. Each of Party A or its Custodian
 will be entitled to hold Posted Collateral pursuant to Paragraph 6(b);
 provided that the following conditions applicable to it are satisfied: 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
Party A, as
 the Secured Party, may hold Posted Collateral at any time providing that it
 is not then a Defaulting Party. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
Posted
 Collateral shall remain credited to a securities account maintained by Party
 A or its Custodian in the United States. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
No Specified
 Condition has occurred and is continuing with respect to Party A. 

	
 

	
 

	
 

	
 

	
 

	
Initially,
 the Custodian for Party A is: [             ]. 

	
 

	
 

	
 

	
 

	
 

	
Party B and
 its Custodian will be entitled to hold Posted Collateral pursuant to
 Paragraph 6(b), provided that the following conditions applicable to it are
 satisfied: 

	
 

	
 

	
 

	
 

	
 

	
 

	
(A)

	
Party B, as
 the Secured Party, may hold Posted Collateral at any time providing that it
 is not then a Defaulting Party. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(B)

	
Posted
 Collateral shall remain credited to a securities account maintained by Party
 B or its Custodian in the United States. 

	
 

	
 

	
 

	
 

	
 

	
 

	
(C)

	
No Specified
 Condition has occurred and is continuing with respect to Party B. 

	
 

	
 

	
 

	
 

	
 

	
Initially,
 the Custodian for Party B is: [     ]. 

	
 

	
 

	
 

	
 

	
 

	
The
 Custodian for Party A is: Not applicable. 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Use of Posted Collateral.
 The provisions of Paragraph 6(c) will apply to Party A. 

	
 

	
 

	
 

	
 

	
(h)

	
Distributions and Interest Amount.
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
Interest Rate.
 the Federal Funds Rate for each day Cash is held by the Secured Party as
 reported in Federal Reserve Publication H.15-519. 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
Transfer of Interest Amount.
 The Transfer of Interest Amount will be made within 3 Local Business Days
 from the last Local Business Day of each calendar month. 

	
 

	
 

	
 

	
 

	
 

	
(iii)

	
Alternative to Interest Amount.
 The provision of Paragraph 6(d)(ii) will apply. 

30

	
 

	
 

	
 

	
(i)

	
Additional Representation(s).
 None. 

	
 

	
 

	
 

	
(j)

	
Other Eligible Support and Other Posted
 Support. 

	
 

	
 

	
 

	
 

	
(i)

	
“Value” with respect
 to Other Eligible Support and Other Posted Support means: Not Applicable. 

	
 

	
 

	
 

	
 

	
(ii)

	
“Transfer” with
 respect to Other Eligible Support and Other Posted Support means: Not
 Applicable. 

	
 

	
 

	
 

	
(k)

	
Demands and Notices.
 All demands, specifications and notices under this Annex will be made
 pursuant to the Notices Section of this Agreement, unless otherwise specified
 here: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party A:

	
 

	
As set forth
 in the Agreement. 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Party B:

	
 

	
As set forth
 in the Agreement. 

	
 

	
 

	
 

	
 

	
 

	
(l)

	
Addresses for Transfers.
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
With respect
 to Party B: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
ABA # 

	
 

	
 

	
 

	
Acct #

	
 

	
 

	
 

	
Acct: 

	
 

	
 

	
 

	
 

	
 

	
 

	
(ii)

	
With respect
 to Party A: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Cash/Interest Payments:
 (USD Only) 

	
 

	
 

	
 

	
ABA # 

	
 

	
 

	
 

	
A/C# 

	
 

	
 

	
 

	
Attn: 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Eligible Collateral (other than USD): 

	
 

	
 

	
 

	
ABA # 

	
 

	
 

	
 

	
 

	
 

	
(m)

	
Other Provisions.
 

	
 

	
 

	
 

	
 

	
 

	
 

	
(i)

	
This Credit
 Support Annex is a Security Agreement under the New York UCC. 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

31

INTENDING TO BE LEGALLY BOUND HEREBY, the
parties execute this Credit Support Annex.

	
 

	
 

	
 

	
 

	
 

	
[USAA Federal Savings Bank]

	
 

	
[Counterparty]

	
 

	
 

	
 

	
 

	
 

	
By: 

	
 

	
 

	
By: 

	
 

	
 

	

	
 

	
 

	

	
Name:

	
 

	
Name:

	
Title:

	
 

	
Title:

	
Date:

	
 

	
Date:

	
 

	
 

	
SWAP TRANSACTION CONFIRMATION

	
 

	

	
 

	
 

	
Date:

	
[                                       ],
 20____

	
 

	
 

	
To:

	
USAA Auto Owner Trust
 20[   ]-[  ] (“Party B”)

	
 

	
c/o
 [_______________________], as Owner Trustee

	
 

	
[__________________________]

	
 

	
[__________________________]

	
 

	
Attention:

	
 

	
Telephone:

	
 

	
Facsimile:

	
 

	
 

	
From:

	
[_________________________________]
 (“Party A”)

	
 

	
[Address]

	
 

	
Attention:

	
 

	
Telephone:

	
 

	
Facsimile:

Ref. No. 

Dear Sir or Madam: 

The purpose of this letter
(this “Confirmation”) is to confirm the terms and conditions of the Transaction
entered into between us on the Trade Date specified below (the “Transaction”).
This Confirmation constitutes a “Confirmation” as referred to in the ISDA
Master Agreement specified below. 

15. The
definitions and provisions contained in (i) the 2000 ISDA Definitions (the
“ISDA Definitions”), as published by the International Swaps and Derivatives
Association, Inc., and (ii) the Sale and Servicing Agreement dated as of
[______________________] (the “Sale and Servicing Agreement”) among Party B,
USAA Acceptance, LLC and USAA Federal Savings Bank, relating to the issuance by
Party B of certain debt obligations, are incorporated into this Confirmation.
In the event of any inconsistency between the ISDA Definitions and this
Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Swap Transaction” for
purposes of the ISDA Definitions. Capitalized terms used but not defined herein
have the meanings ascribed to them in the Sale and Servicing Agreement. 

16. The
terms of the particular Transaction to which the Confirmation relates are as
follows: 

	
 

	
 

	
 

	
 

	
Transaction Type:

	
 

	
Interest Rate Swap 

	
 

	
 

	
 

	
 

	
Currency for Payments:

	
 

	
U.S. Dollars 

	
 

	
 

	
 

	
 

	
Notional Amount:

	
 

	
For the Initial
 Calculation Period, the Notional Amount shall be equal to USD
 [_____________]. For each subsequent Calculation Period, the Notional Amount
 shall be equal to the aggregate outstanding principal amount of the Class
 [__] Notes on the first day of such Calculation Period. With respect to any
 Payment Date, the aggregate outstanding principal amount of the Class [__]
 Notes will be determined using the Servicer’s Certificate issued on the
 Determination Date immediately preceding the Payment Date (giving effect to
 any reductions of the outstanding principal amount of the Class [__] Notes
 reflected in such Servicer’s Certificate).

	
 

	
 

	
 

	
 

	
Initial Calculation
 Period:

	
 

	
__________, 20__ to but
 excluding __________, 20__.

	
 

	
 

	
 

	
 

	
Term:

	
 

	
 

	
 

	
 

	
Trade Date:

	
 

	
__________, 20__

	
 

	
 

	
 

	
 

	
 

	
Effective Date:

	
 

	
__________, 20__

	
 

	
 

	
 

	
 

	
 

	
Termination Date:

	
 

	
The earlier of (i) [insert
 legal final maturity date of Class__ Notes] and (ii) the date on which the
 outstanding principal amount of the Class [__] Notes is reduced to zero.

	
 

	
 

	
 

	
 

	
Fixed Amounts:

	
 

	
Party B

	
 

	
 

	
 

	
 

	
 

	
Fixed Rate Payer:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Calculation Period End
 Dates:

	
 

	
Monthly on the [__] of
 each month, commencing __________,20__, through and including the Termination
 Date.

	
 

	
 

	
 

	
 

	
 

	
Payment Dates:

	
 

	
Monthly on the [__] of
 each month, commencing __________,20__, through and including the Termination
 Date.

	
 

	
 

	
 

	
 

	
 

	
Business Day Convention:

	
 

	
Following

	
 

	
 

	
 

	
 

	
 

	
Business Day:

	
 

	
Principal place of
 business of Party A, [New York, Delaware and Texas]

	
 

	
 

	
 

	
 

	
 

	
Fixed Rate:

	
 

	
_____%

	
 

	
 

	
 

	
 

	
 

	
Fixed Rate Day Count
 Basis:

	
 

	
30/360

3

	
 

	
 

	
 

	
 

	
 

	
Floating Amounts:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Floating Rate Payer:

	
 

	
Party A

	
 

	
 

	
 

	
 

	
 

	
Calculation Period End
 Dates:

	
 

	
Monthly on the [__] of
 each month, commencing __________,20__, through and including the Termination
 Date, subject to adjustment in accordance with the Following Business Day
 Convention.

	
 

	
 

	
 

	
 

	
 

	
Payment Dates:

	
 

	
Monthly on the [__] of
 each month, commencing __________,20__, through and including the Termination
 Date.

	
 

	
 

	
 

	
 

	
 

	
Business Day Convention:

	
 

	
Following

	
 

	
 

	
 

	
 

	
 

	
Business Day:

	
 

	
Principal place of
 business of Party A, [New York, Delaware and Texas]

	
 

	
 

	
 

	
 

	
 

	
 

	
For Payment Dates:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For Reset Dates:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
For the determination of
 the Floating Rate:

	
 

	
London

	
 

	
 

	
 

	
 

	
 

	
Floating Rate Option:

	
 

	
USD LIBOR BBA

	
 

	
 

	
 

	
 

	
 

	
Designated Maturity:

	
 

	
1 Month

	
 

	
 

	
 

	
 

	
 

	
Spread:

	
 

	
None

	
 

	
 

	
 

	
 

	
 

	
Floating Rate Day Count:

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
 

	
Basis:

	
 

	
Actual/360

	
 

	
 

	
 

	
 

	
 

	
 

	
Reset Dates:

	
 

	
The first day of each
 Calculation Period

	
 

	
 

	
 

	
 

	
 

	
 

	
Compounding:

	
 

	
Inapplicable

	
 

	
 

	
 

	
 

	
 

	
3. The additional
 provisions of this Confirmation are as follows:

	
 

	
 

	
 

	
 

	
 

	
Calculation Agent:

	
 

	
As specified in the
 Agreement

	
 

	
 

	
 

	
Payments to Party A:

	
 

	
[SWAP COUNTERPARTY WIRE
 INSTRUCTIONS]

	
 

	
 

	
 

	
Payments to Party B:

	
 

	
[TRUST WIRE INSTRUCTIONS]

4

4. Documentation 

This Confirmation
supplements, forms a part of, and is subject to, the 1992 ISDA Master Agreement
dated as of [          ], 20[
] (including the Schedule thereto) as amended and supplemented from time to
time (the “Agreement”) between you and us. All provisions contained in the
Agreement govern this Confirmation except as expressly modified herein. 

Unless otherwise provided in
the Agreement, this Confirmation is governed by the laws of the State of New
York. 

Please confirm that the
foregoing correctly sets forth the terms of our agreement by executing a copy
of this Confirmation and returning it to us. 

Very truly yours, 

[PARTY “A”] 

	
 

	
 

	
By: 

	
 

	
 

	

	
Name: 

	
Title: 

	
 

	
 

	
Accepted and confirmed as
 of the date first above written: 

	
USAA AUTO
 OWNER TRUST 20[__]-[_] 

	
By:
 [_______________________________], 

	
 

	
 

	
not in
 its individual capacity but solely in its 

	
 

	
 

	
capacity
 as Owner Trustee 

	
 

	
 

	
By:

	
 

	
 

	

	
Name: 

	
Title: 

5EXHIBIT 10.4 

FORM OF

ADMINISTRATION AGREEMENT

among

USAA AUTO OWNER TRUST
20[   ]-[   ], 

as Issuer

USAA FEDERAL SAVINGS BANK, 

as Administrator

and

[   ], 

as Indenture Trustee

Dated as of [      ],
20[   ]

TABLE OF CONTENTS

	
 

	
 

	
 

	
 

	
 

	
Page

	
 

	
 

	
 

	
1.

	
Duties of
 the Administrator

	
1

	
 

	
 

	
 

	
2.

	
Records

	
3

	
 

	
 

	
 

	
3.

	
Compensation;
 Payment of Fees and Expenses

	
3

	
 

	
 

	
 

	
4.

	
Independence
 of the Administrator

	
3

	
 

	
 

	
 

	
5.

	
No Joint
 Venture

	
3

	
 

	
 

	
 

	
6.

	
Other
 Activities of the Administrator

	
3

	
 

	
 

	
 

	
7.

	
Representations
 and Warranties of the Administrator

	
3

	
 

	
 

	
 

	
8.

	
Administrator
 Replacement Events; Termination of the Administrator

	
4

	
 

	
 

	
 

	
9.

	
Action upon
 Termination or Removal

	
6

	
 

	
 

	
 

	
10.

	
Liens

	
6

	
 

	
 

	
 

	
11.

	
Notices

	
6

	
 

	
 

	
 

	
12.

	
Amendments

	
6

	
 

	
 

	
 

	
13.

	
Governing
 Law; Submission to Jurisdiction; Waiver of Jury Trial

	
8

	
 

	
 

	
 

	
14.

	
Headings

	
9

	
 

	
 

	
 

	
15.

	
Counterparts

	
9

	
 

	
 

	
 

	
16.

	
Severability
 of Provisions

	
9

	
 

	
 

	
 

	
17.

	
Not
 Applicable to the Bank in Other Capacities

	
9

	
 

	
 

	
 

	
18.

	
Benefits of
 the Administration Agreement

	
9

	
 

	
 

	
 

	
19.

	
Assignment

	
9

	
 

	
 

	
 

	
20.

	
Nonpetition
 Covenant

	
9

	
 

	
 

	
 

	
21.

	
Limitation
 of Liability

	
10

	
 

	
 

	
 

	
22.

	
Limitation
 of Liability of Indenture Trustee

	
10

	
 

	
 

	
 

	
23.

	
[Limitation
 of Rights]

	
10

i

          THIS ADMINISTRATION AGREEMENT (this
“Agreement”)
dated as of [     ], is among USAA AUTO OWNER TRUST 20[   ]-[   ],
a Delaware statutory trust (the “Issuer”), USAA FEDERAL SAVINGS BANK, a federally chartered savings
association, as administrator (the “Bank” or in its capacity as
administrator, the “Administrator”), and
[         ], a
[         ], as indenture trustee
(the “Indenture Trustee”). Capitalized terms used herein and not
otherwise defined herein shall have the meanings assigned such terms in Appendix
A to the Sale and Servicing Agreement dated as of
[      ] (the “Sale and Servicing Agreement”)
by and among USAA Acceptance, LLC, as seller, the Issuer, the Bank, as
servicer, and the Indenture Trustee. 

W I T N E S S E T H :

          WHEREAS,
the Issuer has issued the Notes pursuant to the Indenture and the Certificate
pursuant to the Trust Agreement and has entered into certain agreements in
connection therewith, including, (i) the Sale and Servicing Agreement, (ii) the
Indenture, (iii) the Note Depository Agreement[, (iv) the Interest Rate Swap
Agreement] and (v) the Trust Agreement (each of the agreements referred to in clauses
(i) through (v) are referred to herein collectively as the “Issuer
Documents”); 

          WHEREAS,
to secure payment of the Notes, the Issuer has pledged the Collateral to the
Indenture Trustee pursuant to the Indenture; 

          WHEREAS,
pursuant to the Issuer Documents, the Issuer and the Owner Trustee are required
to perform certain duties; 

          WHEREAS,
the Issuer and the Owner Trustee desire to have the Administrator perform
certain of the duties of the Issuer and the Owner Trustee (in its capacity as
owner trustee under the Trust Agreement), and to provide such additional
services consistent with this Agreement and the Issuer Documents as the Issuer
may from time to time request; 

          WHEREAS,
the Administrator has the capacity to provide the services required hereby and
is willing to perform such services for the Issuer and the Owner Trustee on the
terms set forth herein; 

          NOW,
THEREFORE, in consideration of the mutual terms and covenants contained herein,
and other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties agree as follows: 

          1.
Duties of the Administrator. 

	
 

	
 

	
 

	
          (a)
 Duties with Respect to the Issuer Documents. The Administrator shall
 perform all of its duties as Administrator under this Agreement and the
 Issuer Documents and the duties and obligations of the Issuer and the Owner
 Trustee (in its capacity as owner trustee under the Trust Agreement) under
 the Issuer Documents; provided, however, except as otherwise provided
 in the Issuer Documents, that the Administrator shall have no obligation to
 make any payment required to be made by the Issuer under any Issuer Document;
 provided, further, however,
 that the Administrator shall have no obligation, and the Owner Trustee shall
 be required to fully perform its duties, with respect to the obligations of
 the Owner Trustee under Sections 11.13, 11.14 and 11.15
 of 

	
 

	
 

	
 

	
the Trust
 Agreement and to otherwise comply with the requirements of the Owner Trustee
 pursuant to or related to Regulation AB. In addition, the Administrator shall
 consult with the Issuer and the Owner Trustee regarding its duties and
 obligations under the Issuer Documents. The Administrator shall monitor the
 performance of the Issuer and the Owner Trustee and shall advise the Issuer
 and the Owner Trustee in writing when action is necessary to comply with the
 Issuer’s and the Owner Trustee’s duties and obligations under the Issuer
 Documents. The Administrator shall perform such calculations, and shall
 prepare for execution by the Issuer or the Owner Trustee or shall cause the
 preparation by other appropriate Persons of all such documents, reports,
 filings, instruments, certificates and opinions as it shall be the duty of
 the Issuer or the Owner Trustee (in its capacity as owner trustee under the
 Trust Agreement) to prepare, file or deliver pursuant to the Issuer
 Documents. In furtherance of the foregoing, the Administrator shall take all
 appropriate action that is the duty of the Issuer or the Owner Trustee (in
 its capacity as owner trustee under the Trust Agreement) to take pursuant to
 the Issuer Documents, and shall prepare and execute on behalf of the Issuer
 or the Owner Trustee all such documents, reports, filings, instruments,
 certificates and opinions as it shall be the duty of the Issuer or the Owner
 Trustee to prepare, file or deliver pursuant to the Issuer Documents or
 otherwise by law. 

	
 

	
 

	
 

	
          (b)
 No Action by Administrator. Notwithstanding anything to the contrary
 in this Agreement, the Administrator shall not be obligated to, and shall
 not, take any action that the Issuer directs the Administrator not to take
 nor which would result in a violation or breach of the Issuer’s covenants,
 agreements or obligations under any of the Issuer Documents. 

	
 

	
 

	
 

	
          (c)
 Non-Ministerial Matters; Exceptions to Administrator Duties. 

	
 

	
 

	
 

	
 

	
 

	
          (i)
 Notwithstanding anything to the contrary in this Agreement, with respect to
 matters that in the reasonable judgment of the Administrator are
 non-ministerial, the Administrator shall not take any action unless, within a
 reasonable time before the taking of such action, the Administrator shall
 have notified the Issuer of the proposed action and the Issuer shall not have
 withheld consent or provided an alternative direction. For the purpose of the
 preceding sentence, “non-ministerial matters” shall include, without
 limitation: 

	
 

	
 

	
 

	
 

	
 

	
          (A)
 the initiation of any claim or lawsuit by the Issuer and the compromise of
 any action, claim or lawsuit brought by or against the Issuer; 

	
 

	
 

	
 

	
 

	
 

	
          (B)
 the appointment of successor Note Registrars, successor Paying Agents,
 successor Indenture Trustees, successor Administrators or successor
 Servicers, or the consent to the assignment by the Note Registrar, the Paying
 Agent or the Indenture Trustee of its obligations under the Indenture; and 

	
 

	
 

	
 

	
 

	
 

	
          (C)
 the removal of the Indenture Trustee. 

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 Notwithstanding anything to the contrary in this Agreement, the Administrator
 shall not be obligated to, and shall not, (x) make any payments to 

	
 

	
 

	
 

	
 

	
2

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
 

	
 

	
the
 Noteholders under the Transaction Documents, (y) except as provided in the
 Transaction Documents, sell the Trust Estate or (z) take any other action
 that the Issuer directs the Administrator not to take on its behalf.

          2.
Records. The Administrator shall maintain appropriate books of account
and records relating to services performed hereunder, which books of account
and records shall be accessible for inspection upon reasonable written request
by the Issuer, the Seller and the Indenture Trustee at any time during normal
business hours. 

          3.
Compensation; Payment of Fees and Expenses. As compensation for the
performance of the Administrator’s obligations under this Agreement and as
reimbursement for its expenses related thereto, the Administrator shall be
entitled to receive $[     ] annually which shall be
solely an obligation of the Seller. The Administrator shall pay all expenses
incurred by it in connection with its activities hereunder. 

          4.
Independence of the Administrator. For all purposes of this Agreement,
the Administrator shall be an independent contractor and shall not be subject
to the supervision of the Issuer with respect to the manner in which it
accomplishes the performance of its obligations hereunder. Unless expressly
authorized by the Issuer, the Administrator shall have no authority to act for
or to represent the Issuer in any way (other than as permitted hereunder) and
shall not otherwise be deemed an agent of the Issuer. 

          5.
No Joint Venture. Nothing contained in this Agreement (i) shall
constitute the Administrator and the Issuer as members of any partnership,
joint venture, association, syndicate, unincorporated business or other
separate entity, (ii) shall be construed to impose any liability as such on any
of them or (iii) shall be deemed to confer on any of them any express, implied
or apparent authority to incur any obligation or liability on behalf of the
other. 

          6.
Other Activities of the Administrator. Nothing herein shall prevent the
Administrator or its Affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an Administrator for any
other Person even though such Person may engage in business activities similar
to those of the Issuer, the Owner Trustee or the Indenture Trustee. 

          7.
Representations and Warranties of the Administrator. The Administrator
represents and warrants to the Issuer and the Indenture Trustee as follows: 

	
 

	
 

	
 

	
          (a)
 Existence and Power. The Administrator is a federally chartered
 savings association validly existing and in good standing under the laws of
 the United States and has, in all material respects, all power and authority
 to carry on its business as now conducted. The Administrator has obtained all
 necessary licenses and approvals in each jurisdiction where the failure to do
 so would materially and adversely affect the ability of the Administrator to
 perform its obligations under the Transaction Documents or affect the
 enforceability or collectibility of the Receivables or any other part of the
 Collateral. 

	
 

	
 

	
 

	
          (b)
 Authorization and No Contravention. The execution, delivery and
 performance by the Administrator of the Transaction Documents to which it is
 a party (i) have been duly authorized by all necessary action on the part of
 the Administrator and 

	
 

	
 

	
 

	
 

	
3

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
(ii) do not
 contravene or constitute a default under (A) any applicable law, rule or
 regulation, (B) its organizational documents or (C) any material agreement,
 contract, order or other instrument to which it is a party or its property is
 subject (other than violations which do not affect the legality, validity or
 enforceability of any of such agreements and which, individually or in the
 aggregate, would not materially and adversely affect the transactions
 contemplated by, or the Administrator’s ability to perform its obligations
 under, the Transaction Documents). 

	
 

	
 

	
 

	
          (c)
 No Consent Required. No approval or authorization by, or filing with,
 any Governmental Authority is required in connection with the execution,
 delivery and performance by the Administrator of any Transaction Document
 other than (i) UCC filings, (ii) approvals and authorizations that have
 previously been obtained and filings that have previously been made and (iii)
 approvals, authorizations or filings which, if not obtained or made, would
 not have a material adverse effect on the enforceability or collectibility of
 the Receivables or any other part of the Collateral or would not materially
 and adversely affect the ability of the Administrator to perform its
 obligations under the Transaction Documents. 

	
 

	
 

	
 

	
          (d)
 Binding Effect. Each Transaction Document to which the Administrator
 is a party constitutes the legal, valid and binding obligation of the
 Administrator enforceable against the Administrator in accordance with its
 terms, except as such enforceability may be limited by applicable bankruptcy,
 insolvency, reorganization, moratorium, receivership, conservatorship or
 other similar laws affecting the enforcement of creditors’ rights generally
 and, if applicable, the rights of creditors of federally chartered savings associations
 from time to time in effect or by general principles of equity. 

	
 

	
 

	
 

	
8. Administrator
 Replacement Events; Termination of the Administrator. 

	
 

	
 

	
 

	
          (a)
 Subject to clauses (d) and (e) below, the Administrator may
 resign its duties hereunder by providing the Issuer with at least sixty (60)
 days’ prior written notice. 

	
 

	
 

	
 

	
          (b)
 Subject to clauses (d) and (e) below, the Issuer may remove the
 Administrator without cause by providing the Administrator with at least
 sixty (60) days’ prior written notice provided,
 that, for so long as any Notes are Outstanding, the Rating Agency Condition
 shall have been satisfied in connection therewith. 

	
 

	
 

	
 

	
          (c)
 The occurrence of any one of the following events (each, an “Administrator
 Replacement Event”) shall also entitle the Issuer, subject to Section
 19 hereof, to terminate and replace the Administrator: 

	
 

	
 

	
 

	
 

	
 

	
          (i)
 any failure by the Administrator to deliver or cause to be delivered any
 required payment to the Indenture Trustee for distribution to the
 Noteholders, which failure continues unremedied for five Business Days after
 discovery thereof by a Responsible Officer of the Administrator or receipt by
 the Administrator of written notice thereof from the Indenture Trustee or
 Noteholders evidencing at least a majority of the Outstanding Note Balance,
 voting together as a single class; 

	
 

	
 

	
 

	
 

	
4

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 any failure by the Administrator to duly observe or perform in any material
 respect any other of its covenants or agreements in this Agreement, which
 failure materially and adversely affects the rights of the Issuer or the
 Noteholders, and which continues unremedied for 90 days after discovery
 thereof by a Responsible Officer of the Administrator or receipt by the
 Administrator of written notice thereof from the Indenture Trustee or
 Noteholders evidencing at least a majority of the Outstanding Note Balance,
 voting together as a single class; 

	
 

	
 

	
 

	
 

	
 

	
          (iii)
 any representation or warranty of the Administrator made in any Transaction
 Document to which the Administrator is a party or by which it is bound or any
 certificate delivered pursuant to this Agreement proves to have been
 incorrect in any material respect when made, which failure materially and
 adversely affects the rights of the Issuer or the Noteholders, and which
 failure continues unremedied for 90 days after discovery thereof by a
 Responsible Officer of the Administrator or receipt by the Administrator of written
 notice thereof from the Indenture Trustee or Noteholders evidencing at least
 a majority of the Outstanding Note Balance, voting together as a single class
 (it being understood that any repurchase of a Receivable by the Bank pursuant
 to Section 3.3 of the Purchase Agreement, by the Seller pursuant to Section
 2.3 of the Sale and Servicing Agreement or by the Servicer pursuant to Section
 3.6 of the Sale and Servicing Agreement shall be deemed to remedy any
 incorrect representation or warranty with respect to such Receivable); or 

	
 

	
 

	
 

	
 

	
 

	
          (iv)
 the Administrator suffers an Insolvency Event; 

	
 

	
 

	
 

	
provided, however,
 that a delay in or failure of performance referred to under clause (i)
 above for a period of 90 days will not constitute an Administrator
 Replacement Event if such delay or failure was caused by force majeure or other similar
 occurrence as certified by the Administrator in an Officer’s Certificate of
 the Administrator delivered to the Indenture Trustee. 

	
 

	
 

	
 

	
          (d)
 If an Administrator Replacement Event shall have occurred, the Issuer may,
 subject to Section 19 hereof, by notice given to the Administrator and
 the Owner Trustee, terminate all or a portion of the rights and powers of the
 Administrator under this Agreement, including the rights of the Administrator
 to receive the annual fee for services hereunder for all periods following
 such termination; provided, however, that such termination shall not
 become effective until such time as the Issuer, subject to Section 19
 hereof, shall have appointed a successor Administrator with the consent of
 the Indenture Trustee in the manner set forth below. Upon any such
 termination, all rights, powers, duties and responsibilities of the
 Administrator under this Agreement shall vest in and be assumed by any
 successor Administrator appointed by the Issuer, subject to Section 19
 hereof, pursuant to a management agreement between the Issuer and such
 successor Administrator, containing substantially the same provisions as this
 Agreement (including with respect to the compensation of such successor
 Administrator), and the successor Administrator is hereby irrevocably
 authorized and empowered to execute and deliver, on behalf of the
 Administrator, as attorney-in-fact or otherwise, all documents and other
 instruments, and to do or accomplish all other acts or things necessary or 

	
 

	
 

	
 

	
 

	
5

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
appropriate
 to effect such vesting and assumption. Further, in such event, the
 Administrator shall use its commercially reasonable efforts to effect the
 orderly and efficient transfer of the administration of the Issuer to the new
 Administrator. 

	
 

	
 

	
 

	
          (e)
The Issuer, subject to Section 19 hereof, may waive in writing any
Administrator Replacement Event by the Administrator in the performance of
its obligations hereunder and its consequences. Upon any such waiver of a
past Administrator Replacement Event, such Administrator Replacement Event
shall cease to exist, and any Administrator Replacement Event arising
therefrom shall be deemed to have been remedied for every purpose of this
Agreement. No such waiver shall extend to any subsequent or other
Administrator Replacement Event or impair any right consequent thereon.  

          9.
Action upon Termination or Removal. Promptly upon the effective date of
termination of this Agreement pursuant to Section 8, or the removal of the
Administrator pursuant to Section 8, the Administrator shall be entitled
to be paid by the Seller all fees and reimbursable expenses accruing to it to
the date of such termination or removal.  

          10.
Liens. The Administrator will not directly or indirectly create, allow
or suffer to exist any Lien on the Collateral other than Permitted Liens. 

          11.
Notices. All demands, notices and communications hereunder shall be in
writing and shall be delivered or mailed by registered or certified first-class
United States mail, postage prepaid, hand delivery, prepaid courier service, or
by facsimile, and addressed in each case as specified on Schedule II to
the Sale and Servicing Agreement or at such other address as shall be
designated by any of the specified addressees in a written notice to the other
parties hereto. Delivery shall occur only upon receipt or reported tender of
such communication by an officer of the recipient entitled to receive such
notices located at the address of such recipient for notices hereunder. 

          12.
Amendments. 

	
 

	
 

	
 

	
 

	
          (a)
 Any term or provision of this Agreement may be amended by the Administrator
 without the consent of the Indenture Trustee, any Noteholder, the Issuer,
 [the Swap Counterparty,] the Owner Trustee or any other Person subject to subsections
 (e) and (f) of this Section 12 and the satisfaction of one of the
 following conditions: 

	
 

	
 

	
 

	
 

	
 

	
          (i)
 the Administrator delivers an Opinion of Counsel to the Indenture Trustee to
 the effect that such amendment will not materially and adversely affect the
 interests of the Noteholders; 

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 the Administrator delivers an Officer’s Certificate of the Administrator to
 the Indenture Trustee to the effect that such amendment will not materially
 or adversely affect the interests of the Noteholders; or 

	
 

	
 

	
 

	
 

	
 

	
          (iii)
 the Administrator delivers to the Indenture Trustee written confirmation from
 each Rating Agency that such amendment will not cause it to downgrade,
 qualify or withdraw its rating assigned to any of the Notes; 

	
 

	
 

	
 

	
 

	
6

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
          (b)
 Subject to subsections (e) and (f) of this Section 12,
 any term or provision of this Agreement may be amended by the Administrator
 but without the consent of the Indenture Trustee, any Noteholder, the Issuer,
 the Owner Trustee or any other Person to add, modify or eliminate any provisions
 as may be necessary or advisable in order to enable the Seller, the Servicer
 or any of their Affiliates to comply with or obtain more favorable treatment
 under any law or regulation or any accounting rule or principle (whether now
 or in the future), it being a condition to any such amendment that the Rating
 Agency Condition shall have been satisfied. 

	
 

	
 

	
 

	
          (c)
 Subject to subsections (e) and (f) of this Section 12,
 this Agreement may also be amended from time to time by the Issuer, the Administrator
 and the Indenture Trustee, with the consent of the Holders of Notes
 evidencing not less than a majority of the Outstanding Note Balance of the
 Controlling Class, for the purpose of adding any provisions to or changing in
 any manner or eliminating any of the provisions of this Agreement or of
 modifying in any manner the rights of the Noteholders. It will not be
 necessary for the consent of Noteholders to approve the particular form of
 any proposed amendment or consent, but it will be sufficient if such consent
 approves the substance thereof. The manner of obtaining such consents (and
 any other consents of Noteholders provided for in this Agreement) and of
 evidencing the authorization of the execution thereof by Noteholders will be
 subject to such reasonable requirements as the Indenture Trustee may
 prescribe, including the establishment of record dates pursuant to the Note
 Depository Agreement. 

	
 

	
 

	
 

	
          (d)
 Prior to the execution of any such amendment, the Administrator shall provide
 written notification of the substance of such amendment to each Rating Agency
 and the Owner Trustee; and promptly after the execution of any such amendment
 or consent, the Administrator shall furnish a copy of such amendment or
 consent to each Rating Agency, the Owner Trustee and the Indenture Trustee.
 Any written confirmation received from any Rating Agency that an amendment
 will not cause it to downgrade, qualify or withdraw its rating on the Notes
 shall not create any presumption that such amendment does not materially and
 adversely affect the interests of the Noteholders. 

	
 

	
 

	
 

	
          (e)
 Prior to the execution of any amendment to this Agreement, the Issuer, the
 Owner Trustee and the Indenture Trustee shall be entitled to receive and
 conclusively rely upon an Opinion of Counsel stating that the execution of
 such amendment is authorized or permitted by this Agreement and that all
 conditions precedent to the execution and delivery of such amendment have
 been satisfied. The Owner Trustee and the Indenture Trustee may, but shall
 not be obligated to, enter into any such amendment which materially and
 adversely affects the Owner Trustee’s or the Indenture Trustee’s, as
 applicable, own rights, privileges, indemnities, duties or obligations under
 this Agreement, the Transaction Documents or otherwise. Prior to the
 execution of any amendment to this Agreement without the consent of the Owner
 Trustee and Indenture Trustee, as applicable, such Person shall be entitled
 to receive an Opinion of Counsel to the effect that such amendment shall not
 materially and adversely affect the Owner Trustee’s or Indenture Trustee’s,
 as applicable, own rights, privileges, indemnities, duties or obligations
 under this Agreement; provided
 that such Opinion of Counsel shall not be given by counsel that is also an
 employee of the Seller, the Servicer or their respective 

	
 

	
 

	
 

	
 

	
7

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
Affiliates.
 Furthermore, notwithstanding anything to the contrary herein, (i) this
 Agreement may not be amended in any way that would materially and adversely
 affect the Owner Trustee’s or the Indenture Trustee’s, as applicable, own
 rights, privileges, indemnities, duties, or obligations under this Agreement,
 the Transaction Documents or otherwise without the prior written consent of
 such Person [and (ii) this Agreement may not be amended in any way that would
 materially and adversely affect the rights or obligations of the Swap
 Counterparty unless the Swap Counterparty shall have consented in writing to
 such amendment (and such consent shall be deemed to have been given if the
 Swap Counterparty does not object in writing within ten (10) Business Days
 after receipt of a written request for such consent)]. 

	
 

	
 

	
 

	
          (f)
Notwithstanding any provision of this Section 12 to the contrary, the
permitted activities of the Issuer may be significantly changed only with the
approval of the Holders of at least a majority of the Notes held by entities
other than the Seller, its Affiliates and its agents.  

	
 

	
 

	
 

	
13. Governing
 Law; Submission to Jurisdiction; Waiver of Jury Trial. 

	
 

	
 

	
 

	
          (a)
 THIS AGREEMENT SHALL BE GOVERNED BY AND
 CONSTRUED IN ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF
 NEW YORK WITHOUT REFERENCE TO THE RULES THEREOF RELATING TO CONFLICTS OF LAW,
 OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS
 LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL
 BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

	
 

	
 

	
 

	
          (b)
 Each of the parties hereto hereby irrevocably and unconditionally: 

	
 

	
 

	
 

	
 

	
 

	
          (i)
 submits for itself and its property in any legal action or Proceeding
 relating to this Agreement or any documents executed and delivered in
 connection herewith, or for recognition and enforcement of any judgment in
 respect thereof, to the nonexclusive general jurisdiction of the courts of
 the State of New York, the courts of the United States of America for the
 Southern District of New York and appellate courts from any thereof; 

	
 

	
 

	
 

	
 

	
 

	
          (ii)
 consents that any such action or Proceeding may be brought in such courts and
 waives any objection that it may now or hereafter have to the venue of such
 action or Proceeding in any such court or that such action or Proceeding was
 brought in an inconvenient court and agrees not to plead or claim the same; 

	
 

	
 

	
 

	
 

	
 

	
          (iii)
 agrees that service of process in any such action or Proceeding may be
 effected by mailing a copy thereof by registered or certified mail (or any
 substantially similar form of mail), postage prepaid, to such Person at its
 address determined in accordance with Section 11 of this Agreement; 

	
 

	
 

	
 

	
 

	
8

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
 

	
 

	
          (iv)
 agrees that nothing herein shall affect the right to effect service of
 process in any other manner permitted by law or shall limit the right to sue
 in any other jurisdiction; and 

	
 

	
 

	
 

	
 

	
 

	
          (v)
 to the extent permitted by applicable law, each party hereto irrevocably
 waives all right of trial by jury in any action, Proceeding or counterclaim
 based on, or arising out of, under or in connection with this Agreement, any
 other Transaction Document, or any matter arising hereunder or thereunder. 

          14.
Headings. The section headings hereof have been inserted for convenience
of reference only and shall not be construed to affect the meaning,
construction or effect of this Agreement. 

          15.
Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but
all of such counterparts shall together constitute but one and the same
instrument. 

          16.
Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason
whatsoever held invalid, then such covenants, agreements, provisions or terms
shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and shall in no way affect the validity or
enforceability of the other provisions of this Agreement. 

          17.
Not Applicable to the Bank in Other Capacities. Nothing in this
Agreement shall affect any obligation the Bank may have in any other capacity. 

          18.
Benefits of the Administration Agreement. Nothing in this Agreement,
expressed or implied, shall give to any Person other than the parties hereto
and their successors hereunder, the Owner Trustee, any separate trustee or
co-trustee appointed under Section 6.10 of the Indenture[, the Swap Counterparty]
and the Noteholders, any benefit or any legal or equitable right, remedy or
claim under this Agreement. For the avoidance of doubt, the Owner Trustee is a
third party beneficiary of this Agreement and is entitled to the rights and
benefits hereunder and may enforce the provisions hereof as if it were a party
hereto.  

          19.
Assignment. Each party hereto hereby acknowledges and consents to the
mortgage, pledge, assignment and Grant of a security interest by the Issuer to
the Indenture Trustee pursuant to the Indenture for the benefit of the
Noteholders of all of the Issuer’s rights under this Agreement. In addition,
the Administrator hereby acknowledges and agrees that for so long as any Notes
are outstanding, the Indenture Trustee will have the right to exercise all
waivers and consents, rights, remedies, powers, privileges and claims of the
Issuer under this Agreement pursuant to the Grant of such security interest. 

          20.
Nonpetition Covenant. Each party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each
Bankruptcy Remote Party in respect of all securities issued by any Bankruptcy
Remote Party (i) such party shall not authorize any Bankruptcy Remote Party to
commence a voluntary winding-up or other voluntary case or other Proceeding
seeking liquidation, reorganization or other relief with respect to such 

	
 

	
 

	
 

	
 

	
9

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

Bankruptcy
Remote Party or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect in any jurisdiction or seeking the appointment of an
administrator, a trustee, receiver, liquidator, custodian or other similar
official with respect to such Bankruptcy Remote Party or any substantial part of
its property or to consent to any such relief or to the appointment of or
taking possession by any such official in an involuntary case or other
Proceeding commenced against such Bankruptcy Remote Party, or to make a general
assignment for the benefit of, its creditors generally, any party hereto or any
other creditor of such Bankruptcy Remote Party, and (ii) none of the parties
hereto shall commence or join with any other Person in commencing any
Proceeding against such Bankruptcy Remote Party under any bankruptcy,
reorganization, liquidation or insolvency law or statute now or hereafter in
effect in any jurisdiction. 

          21.
Limitation of Liability. Notwithstanding anything contained herein to
the contrary, this Agreement has been executed and delivered by
[      ], not in its individual capacity but
solely as Owner Trustee, and in no event shall it have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or under the Notes or any of the other Transaction Documents
or in any of the certificates, notices or agreements delivered pursuant
thereto, as to all of which recourse shall be had solely to the assets of the
Issuer. Under no circumstances shall the Owner Trustee be personally liable for
the payment of any indebtedness or expense of the Issuer or be liable for the
breach or failure of any obligations, representation, warranty or covenant made
or undertaken by the Issuer under the Transaction Documents. For the purposes
of this Agreement, in the performance of its duties or obligations hereunder,
the Owner Trustee shall be subject to, and entitled to the benefits of, the
terms and provisions of Articles VI, VII and VIII of the
Trust Agreement. 

          22.
Limitation of Liability of Indenture Trustee. Notwithstanding anything
contained herein to the contrary, this Agreement has been countersigned by
[      ] not in its individual capacity but
solely as Indenture Trustee and in no event shall [      ]
have any liability for the representations, warranties, covenants, agreements
or other obligations of the Issuer hereunder or in any of the certificates,
notices or agreements delivered pursuant hereto, as to all of which recourse
shall be had solely to the assets of the Issuer. For all purposes of this
Agreement, in the performance of its duties or obligations hereunder or in the
performance of any duties or obligations of the Issuer hereunder, the Indenture
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Article VI of the Indenture. 

          23.
[Limitation of Rights]. [All of the rights of the Swap Counterparty in,
to and under this Agreement, if any, shall terminate upon the termination of
the Interest Rate Swap Agreement in accordance with the terms thereof and the
payment in full of all amounts owing to the Swap Counterparty under such
Interest Rate Swap Agreement.] 

[SIGNATURES ON NEXT PAGE]

	
 

	
 

	
 

	
 

	
10

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

          IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the day and year first above written. 

	
 

	
 

	
 

	
 

	
 

	
USAA AUTO OWNER TRUST 20[   ]-[   ]

	
 

	
 

	
 

	
 

	
By:  [     ],
 not in its individual capacity but solely as Owner Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
S-1

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
 

	
 

	
USAA FEDERAL SAVINGS BANK, as

	
 

	
Administrator

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
S-2

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

	
 

	
 

	
 

	
 

	
 

	
[    ],
 not in its individual capacity but solely as Indenture Trustee

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
S-3

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

Joinder of
USAA Acceptance, LLC: 

USAA
Acceptance, LLC joins in this Agreement solely for purposes of Section 3.  

	
 

	
 

	
 

	
 

	
 

	
USAA ACCEPTANCE, LLC

	
 

	
 

	
 

	
 

	
By:

	
 

	
 

	
 

	

	
 

	
Name:

	
 

	
 

	
Title:

	
 

	
 

	
 

	
 

	
 

	
S-4

	
Administration Agreement

	
 

	
 

	
(USAA 20[ ]-[ ])

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00163-of-00352.parquet"}]]