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EXHIBIT 4.4  

        INSURANCE AND REIMBURSEMENT AGREEMENT (the "Insurance Agreement") made as of
            ,            ,
among                        ,
a                        (the "Insurer"), the Trust (as defined below),
                        , as Indenture
Trustee (as defined in the Indenture), Pooled Auto Securities Shelf LLC (the "Depositor")
and                        , in its individual capacity
("            "), as seller (the "Seller"), and as servicer (in such capacity, together with its successors and assigns, including without
limitation
any successor servicer appointed pursuant to the Sale and Servicing Agreement (as defined below), the "Servicer"). 

 
 

PRELIMINARY STATEMENTS    
  

        The Depositor is the grantor of the                        , a
Delaware statutory business trust (the "Trust") consisting
of a pool of motor vehicle installment sales contracts, and loan and security agreements, and certain other assets and rights as described in the Amended and Restated Trust Agreement dated as of
            ,            (the "Trust Agreement") between the Depositor,
and                        , as owner trustee (the
"Owner Trustee") sold to the Depositor by the Seller pursuant to a Receivables Purchase Agreement dated as of            ,
            between
the Seller and the Depositor (the "Receivables Purchase Agreement"); and 

        The
Insurer is authorized to transact a financial guaranty insurance business in the State of            and has agreed to issue to the Indenture Trustee (as defined below) for the
benefit of the holders of the Notes and Certificates a financial guaranty insurance policy substantially in the form of Exhibit A hereto (the
"Policy"); and 

        The
parties hereto, among other things, desire to specify the conditions precedent to the issuance by the Insurer of the Policy, the payment of the premium and other amounts in respect
thereof, the obligations of the Seller, the Servicer, the Trust and the Depositor to the Insurer thereunder, and to provide for certain other matters related thereto. 

        NOW, THEREFORE, in consideration of the premises and of the agreements herein contained, the Insurer,            , the Seller, the
Servicer, the Indenture Trustee, the Trust and the Depositor agree as follows: 

 
 

ARTICLE I
  DEFINITIONS    
  

        Section 1.01.    General Definitions.    The terms defined in this Article I shall have the meanings
provided herein for all purposes of this Insurance Agreement, unless the context clearly requires otherwise, in both singular and plural form, as appropriate. Capitalized terms used herein and not
otherwise defined shall have the meanings assigned to them in the Indenture dated as of            ,            (the "Indenture") between the
Trust and Bankers Trust Company, as indenture trustee (the "Indenture Trustee") and to the extent not defined therein, in the Sale and Servicing
Agreement dated as of            ,            (the "Sale and Servicing Agreement")
among the Trust, the Depositor, the Seller and the Servicer. 

        "Affiliate" means, as to any specified Person, any other Person controlling or controlled by or under common control with such specified
Person. For the purposes of this definition, "control" when used with respect to any specified Person means the power to direct the management and
policies of such Person, directly or indirectly, whether through the ownership of voting securities, by contract or otherwise; and the terms
"controlling" or "controlled" have meanings correlative to the foregoing. 

        "Base Rate" means the fluctuating rate of interest as published from time to time in the New York, New York edition of  The Wall Street Journal, under the caption
"Money Rates" as the
"prime rate", the Base Rate to change when and as such published prime rate changes. 

        "Closing Date" means            ,            . 

 

        "Cumulative Net Loss Percentage" means, for any Distribution Date, a fraction (i) the numerator of which is the aggregate Principal
Balance of all Defaulted Receivables as of such Distribution Date less the aggregate Liquidation Proceeds received since the Cutoff Date and (ii) the denominator of which is
$                        . 

        "Cumulative Net Loss Trigger Event" shall, for any Distribution Date, be deemed to have occurred if the Cumulative Net Loss Percentage
exceeds the amount set forth below opposite the Collection Period related to such Distribution Date: 

	Collection

Period
	 	Cumulative

Net Loss Percentage
	 
	1-6	 	            	%
	7-9	 	            	%
	10-12	 	            	%
	13-15	 	            	%
	16-18	 	            	%
	19-21	 	            	%
	22-24	 	            	%
	25-27	 	            	%
	28-30	 	            	%
	31-33	 	            	%
	34-36	 	            	%
	37-39	 	            	%
	40-42	 	            	%

        "Fiscal Agent" means the Fiscal Agent, if any, designated pursuant to the terms of the Policy. 

        "GAAP" means Generally Accepted Accounting Principles in effect from time to time in the United States of America. 

        "Governmental Authority" means any nation or government, any state or other political subdivision thereof and any entity exercising
executive, legislative, judicial, regulatory or administrative functions of or pertaining to government. 

        "Indemnification Agreement" means the Indemnification Agreement, dated as of            ,
            , among the Insurer, the
Seller, the Depositor,                        , and the Underwriters (as defined therein). 

        "Person" means an individual, a partnership, a corporation, a business trust, a joint stock company, a trust, an unincorporated
association, a joint venture, a Governmental Authority or other entity of whatever nature. 

        "Premium" means the Premium payable pursuant to the Premium Side Letter Agreement. 

        "Premium Side Letter Agreement" means the letter dated the Closing Date from the Insurer to the Seller setting forth the payment
arrangement for the Premium on the Policy and certain other fees and related expense payment arrangements. 

        "Prospectus" means the prospectus dated as of            ,            and the prospectus
supplement, dated as of            ,
            relating to the offering of the Notes and the Certificates. 

        "Registration Statement" means the Registration Statement on Form S-3 (Registration
No. 333-            , as amended), relating to the public offering from time to time by the Depositor of asset-backed notes and/or certificates. 

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        "Repayment Amount" has the meaning given to such term in Section 2.04(a) hereof. 

        "Required Reserve Account Increase Amount" shall mean as of any Distribution Date, the greater of (i)     % of the Pool
Balance as of the Cutoff Date and (ii)     %, of the Pool Balance as of the last day of the related Collection Period. 

        "Required Reserve Account Increase Event" shall mean, for any Distribution Date, the occurrence of any of the following events: 

	a.
	the
Rolling 3-Month Delinquency Rate shall exceed, beginning on the first Distribution Date and up to and including the            Distribution Date,    %,
and after the            Distribution Date    %;

	b.
	the
Cumulative Net Loss Percentage shall exceed the amount set forth below opposite the Collection Period related to such Distribution Date: 

	Collection

Period
	 	Cumulative

Net Loss Percentage
	 
	1-6	 	            	%
	7-9	 	            	%
	10-12	 	            	%
	13-15	 	            	%
	16-18	 	            	%
	19-21	 	            	%
	22-24	 	            	%
	25-27	 	            	%
	28-30	 	            	%
	31-33	 	            	%
	34-36	 	            	%
	37-39	 	            	%
	40-42	 	            	%

        "Rolling 3-Month Delinquency Rate" means, with any respect to any Distribution Date,
the average of, for each of the three (3) immediately preceding Collection Periods, (i) the aggregate Principal Balance of Receivables 30 days (but not more than 120 days)
or more delinquent as of the end of such Collection Period divided by (ii) the outstanding Pool Balance as of the beginning of such Collection Period. 

        "Servicing Standards" means the level of performance of the Servicer as measured by compliance with all the terms and conditions of the
Sale and Servicing Agreement. 

        "Subsidiary" means, as to any Person, a corporation of which shares of stock having ordinary voting power (other than stock having such
power only by reason of the happening of a contingency) to elect a majority of the board of directors or other managers of such corporation are at the time owned, or the management of which is
otherwise controlled, directly or indirectly, through one or more intermediaries, or both, by such Person. 

        "Trigger Event" shall have the meaning set forth in Section 6.01(a) hereof. 

        "Underwriting Agreement" means the Underwriting Agreement dated            ,            , between
the Depositor and the
Underwriters (as defined therein). 

        Section 1.02.    Generic Terms.    All words used herein shall be construed to be of such gender or number as
the circumstances require. The words "herein," "hereby," "hereof," "hereto," 

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"hereinbefore" and "hereinafter, " and words of similar import, refer to this Insurance Agreement in its entirety and not to any particular paragraph, clause or other subdivision, unless otherwise
specified. 

 
 

ARTICLE II
  THE POLICY AND REIMBURSEMENT    
  

        Section 2.01.    Policy.    The Insurer agrees, subject to the conditions hereinafter set forth, on the Closing
Date to issue the Policy. 

        Section 2.02.    Conditions Precedent to Obligations of the Parties.    The obligation of the Insurer to issue
the Policy under this Insurance Agreement is subject to the satisfaction of the following conditions on the Closing Date: 

        (a)  The
following documents shall have been duly authorized, executed and delivered by each of the parties thereto (other than the Insurer) and shall be in full force and
effect and in form and substance satisfactory to the Insurer and an executed counterpart of each thereof shall have been delivered to the Insurer: 

        (i)    this
Insurance Agreement; 

        (ii)  the
Indenture; 

        (iii)  the
Trust Agreement; 

        (iv)  the
Sale and Servicing Agreement; 

        (v)  the
Receivables Purchase Agreement; 

        (vi)  the
Underwriting Agreement; and 

        (vii) the
Indemnification Agreement. 

        (items
(i) through (vii) collectively, the "Transaction Documents"). 

        (b)  the
Insurer shall have received: 

        (i)    copies
certified by the Secretary or an Assistant Secretary of each of the Seller, the Servicer and the Depositor, dated the Closing Date, of its charter and
by-laws or certificate of formation and limited liability company agreement, as applicable, and the resolutions of its Board of Directors or a duly authorized committee thereof authorizing
its execution and delivery of the Transaction Documents and of all documents evidencing other corporate or limited liability company action and governmental approvals, if any, that are necessary for
the consummation of the transactions contemplated in such documents; 

        (ii)  a
certificate, dated the Closing Date, of the Secretary or an Assistant Secretary of each of the Seller, the Servicer and the Depositor certifying the names and true
signatures of its officers authorized to sign the Transaction Documents; 

        (iii)  a
certificate, dated the Closing Date, of the Chief Financial Officer, a Treasurer, an Assistant Treasurer or the President of each of the Seller, the Servicer and the
Depositor certifying to the effect of the representation and warranty set forth in Section 3.01(a)(v) hereof; 

        (iv)  a
favorable opinion or opinions, dated the Closing Date, satisfactory in form and substance to the Insurer, from counsel to each of the Seller, the Servicer and the
Depositor, acceptable to the Insurer, to the effect that (A) each of the Transaction Documents to which it is a party has been duly executed and delivered by such entity and each constitutes
the legal, valid and binding agreement of such entity, enforceable in accordance with its respective terms, subject to bankruptcy, reorganization, insolvency, moratorium, fraudulent conveyance or 

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other laws of general applicability relating to or affecting creditors' rights generally from time to time in effect and general principles of equity, and (B) no registration with or consent
or approval of any Governmental Authority having jurisdiction over such entity is required in connection with the execution, delivery or performance by such entity of any such agreement which has not
been obtained, and with respect to such other matters, including, without limitation, true sale, perfection and tax issues as the Insurer may reasonably require; 

        (v)  evidence
that a UCC financing statement or statements covering the ownership interest of the Depositor created by or pursuant to the Receivables Purchase Agreement in
the Receivables and the other property and rights which the Depositor is granted in the Receivables Purchase Agreement and the proceeds thereof has been executed by the Seller in favor of the
Depositor, and has been duly filed
in such place or places which, in the opinion of counsel for the Depositor and the Insurer, are necessary or desirable to protect said interests; 

        (vi)  evidence
that a UCC financing statement or statements covering the ownership interest of the Trust created by or pursuant to the Trust Agreement in the Trust Estate and
the other property and rights which the Trust is granted in the Trust Agreement and the proceeds thereof has been executed by the Depositor in favor of the Trust, and has been duly filed in such place
or places which, in the opinion of counsel for the Depositor and the Insurer, are necessary or desirable to protect said interests; 

        (vii) evidence
that a UCC financing statement or statements covering the security interest of the Indenture Trustee, for the benefit of the Noteholders and the Insurer,
created by or pursuant to the Indenture, in the Collateral (as defined in the Indenture) which the Indenture Trustee is granted pursuant to the Indenture, has been executed by the Trust in favor of
the Indenture Trustee for the benefit of the Noteholders and the Insurer, and has been duly filed in such place or places which, in the opinion of counsel for the Depositor and the Insurer, are
necessary or desirable to protect said interests; 

        (viii)  evidence
that the Collection Account, the Note Payment Account, the Certificate Payment Account and the Reserve Account have been established in
accordance with the terms and conditions of the Sale and Servicing Agreement, the Trust Agreement or the Indenture, as applicable; and 

        (ix)  such
other documents, certificates, instruments, approvals (and, if requested by the Insurer, certified duplicates or executed copies thereof) or opinions as the
Insurer may reasonably request. 

        (c)  No
statute, rule, regulation or order shall have been enacted, entered or deemed applicable by any government or governmental or administrative agency or court which
would make the transactions contemplated by the Transaction Documents illegal or otherwise prevent the consummation thereof. 

        (d)  the
Insurer shall have received specimens of the Notes and the Certificates. 

        (e)  the
Insurer shall have received an executed copy of all legal opinions, certificates, accountant's reports and other documents required to be furnished by the Seller,
the Servicer and the Depositor pursuant to the Sale and Servicing Agreement, the Indenture or the Underwriting Agreement or pursuant to the requirements
of                        ,
                        or any
other rating agency rating the Notes and Certificates. Such documents shall be in form and substance satisfactory to the Insurer and each such legal opinion or certificate (other than any accountant's
report) shall be addressed to the Insurer or accompanied by appropriate reliance letters to the Insurer. 

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        (f)    Simultaneously
with the issuance of the Policy, the Notes and the Certificates shall have been duly executed and authenticated and delivered to the purchaser(s) thereof
pursuant to the Underwriting Agreement. 

        (g)  All
fees and expenses payable to the Insurer on or prior to the Closing Date by the Seller pursuant to the Premium Side Letter Agreement shall have been paid in full. 

        Section 2.03.    Premium.    The Insurer shall be entitled to receive the Premium for the Policy on each
Distribution Date in accordance with the terms and conditions of the Premium Side Letter Agreement. 

        Section 2.04.    Reimbursement Obligations.    

        (a)  The
Insurer shall be entitled to reimbursement, pursuant to the terms hereof and of the Indenture, for any payment made under the Policy which term shall include,
without limitation, any optional prepayment of the Notes or the Certificates by the Insurer pursuant to Section    or    of the Indenture, which reimbursement shall be paid to
the Insurer on the date that any amount is to be paid pursuant to a Notice for Payment (as defined in the Policy) or in the case of an optional prepayment of the Notes or the Certificates by the
Insurer, on the date such prepayment is made by the Insurer. Such reimbursement shall be made in accordance with the terms hereof and of the Indenture, in an amount (the
"Repayment Amount") equal to the sum of the amount to be paid under the Policy and all such amounts previously paid that remain unpaid, together with
interest on any and all amounts remaining unpaid (to the extent permitted by law, if in respect of any unpaid amounts representing interest) from the date such amounts became due until paid in full
(after as well as before judgment), at a rate of interest equal to the Base Rate from time to time in effect plus    %. 

        (b)  Anything
in Section 2.04(a) to the contrary notwithstanding, the Insurer shall be entitled to reimbursement (to the extent such reimbursement and related interest
has not previously been paid by payment to the Insurer from the Trust) from (i) the Seller, for payments made under the Policy arising as a result of the Seller's failure to repurchase any
Receivable required to be repurchased pursuant to Section    of the Sale and Servicing Agreement and Section    of the Receivables Purchase Agreement, together with interest on
any and all such amounts remaining unpaid (to the extent permitted by law, if in respect of any unpaid amounts representing interest) from the date such amounts became due until paid in full (after as
well as before judgment), at a rate of interest equal to the Base Rate from time to time in effect plus    %, and (ii) the Servicer, for payments made under the Policy, arising as a
result of (A) the Servicer's failure to deposit into the Collection Account, the Note Payment Account, the Certificate Payment Account or the Reserve Account any amount required to be so
deposited pursuant to the Sale and Servicing Agreement or (B) the Servicer's failure to purchase any Receivable required to be purchased pursuant to Section    of the Sale and
Servicing Agreement, together with interest on any and all such amounts remaining unpaid (to the extent permitted by law, if in respect of any unpaid amounts representing interest) from the date such
amounts became due until paid in full (after as well as before judgment), at a rate of interest equal to the Base Rate from time to time in effect plus    %. 

        (c)  Interest
payable to the Insurer under this Insurance Agreement shall be calculated on the basis of a 360-day year for the actual number of days elapsed and
with respect to amounts payable pursuant to Sections 2.03, 2.04(a) or 2.04(b) shall be payable in accordance with the Indenture or to the extent payable pursuant to any other section herein on demand. 

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ARTICLE III
  REPRESENTATIONS AND WARRANTIES    
  

        Section 3.01.    Representations and Warranties of the Seller, the Servicer and the Depositor.    

        (a)  Each
of Seller, the Servicer and the Depositor represents and warrants to the Insurer, severally and not jointly, as of the Closing Date that: 

        (i)    it
has the power and authority to execute and deliver the Transaction Documents and all other documents and agreements contemplated hereby and thereby to which it is a
party, as well as to carry out the terms hereof and thereof; 

        (ii)  it
has taken all necessary action, including but not limited to all requisite corporate or limited liability company action, as applicable, to authorize the execution,
delivery and performance of the Transaction Documents and all other documents and agreements contemplated hereby and thereby to which it is a party. When executed and delivered by it, each of the
Transaction Documents to which it is a party will constitute its legal, valid and binding obligation enforceable in accordance with its terms subject, as to enforcement, to applicable bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter in effect affecting the enforcement of creditors' rights in general, and except as such enforceability may be limited by
general principles of equity (whether considered in a suit at law or in equity); 

        (iii)  all
authorizations, licenses, permits, certificates, franchises, consents, approvals and undertakings which are required to be obtained by it under any applicable law
which are material to (i) the conduct of its business, (ii) the ownership, use, operation or maintenance of its properties and (iii) the execution, delivery and performance by it
of its obligations to the Insurer, the Noteholders and the Certificateholders under or in connection with the Transaction Documents, the Notes, the Certificates
and the Policy have been received, and all such authorizations, licenses, permits, certificates, franchises, consents, approvals and undertakings are in full force and effect; 

        (iv)  its
execution, issuance, delivery of, and performance of its obligations under the Transaction Documents and any and all instruments or documents required to be
executed or delivered pursuant to or in connection herewith or therewith were and are within its corporate or limited liability company powers, as applicable, and will not violate any provision of any
law, regulation, decree or governmental authorization applicable to it, or its charter, by-laws, or certificate of formation or limited liability company agreement, as applicable, and will
not violate or cause a default under any provision of any material contract, agreement, mortgage, indenture or other undertaking to which it is a party or which is binding upon it or any of its
property or assets, and will not result in the imposition or creation of any lien, charge, or encumbrance upon any of its properties or assets pursuant to the provisions of any such contract,
agreement, mortgage, indenture or undertaking, other than as specifically set forth herein and in the Transaction Documents; 

        (v)  its
execution and delivery of the Transaction Documents and the consummation of the transactions contemplated by such agreements were not made (A) in
contemplation of its insolvency, (B) with the intent to hinder, delay or defraud the Seller, the Servicer or the Depositor or any creditor of the Seller, the Servicer or the Depositor,
(C) after the commission of any act of insolvency by the Seller, the Servicer or the Depositor or (D) without fair consideration. It is not possessed of assets or capital unreasonably
small in value in relation to its business, and its remaining assets or capital will not be unreasonably small in value in relation to and after giving effect to the Seller's transfer under the
Receivables Purchase Agreement to the Depositor and the Depositor's transfer of the Trust 

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Estate and other assets to the Trust and the consummation of the other transactions contemplated by the aforementioned agreements. It is not insolvent at the time of, and will not be rendered
insolvent by virtue of, such transfers and transactions. By consummating the transactions contemplated by the aforementioned agreements, it does not intend to, and does not believe that it will, incur
debts beyond its ability to pay such debts as they become due; 

        (vi)  there
are no legal, governmental or regulatory proceedings pending to which it is a party or of which any of its property is the subject, which if determined adversely
to any of them would individually or in the aggregate have a material adverse effect on its performance of the Transaction Documents or the consummation of the transactions contemplated hereunder or
thereunder; and to the best of its knowledge, no such proceedings are threatened or contemplated by Governmental Authorities or threatened by others; and 

        (vii) each
of the representations and warranties made by the Seller in the Receivables Purchase Agreement and each of the representations and warranties made by the
Depositor and the Servicer in the Sale and Servicing Agreement are true and correct in all material respects as of the date made. 

        (b)  The
Depositor represents and warrants that (i) as of the date that the Registration Statement thereto became effective, the Registration Statement (other than the
Seller Information (as defined in the Receivables Purchase Agreement), the Insurer Information (as defined in the Indemnification Agreement) and the Underwriter Information (as defined in the
Indemnification Agreement)) neither contained any untrue statement of a material fact nor omitted to state a material fact required to be stated therein or necessary to make the statements therein not
misleading, and (ii) as of the date that the Prospectus is first filed with the Securities and Exchange Commission pursuant to Rule 424(b) under the Securities Act of 1933, as amended,
and on the Closing Date, the Prospectus, and any amendment thereof or supplement thereto (other than the the Insurer Information and the Underwriter Information, each as defined in the Indemnification
Agreement) did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements therein, in light of the circumstances under which they
were made, not misleading. Each of the Seller and the Servicer represents and warrants that on the Closing Date, the Seller Information (as defined in the Receivables Purchase Agreement) set forth in
the Prospectus, and any amendment thereof or supplement thereto did not contain any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. 

 
 

ARTICLE IV
  COVENANTS    
  

        Section 4.01.    Affirmative Covenants of            , individually, as Seller and as
Servicer.                , individually, as Seller and as Servicer, hereby covenants and agrees that during the term of this Insurance Agreement:

        (a)  It
shall, for the benefit of the Insurer, perform in all material respects each of its agreements, warranties and indemnities contained in the Sale and Servicing
Agreement and the Receivables Purchase Agreement, which are hereby incorporated by reference into this Insurance Agreement as if set forth herein in full. 

        (b)  It
shall not terminate (except in accordance with the terms thereof), amend, waive or otherwise modify the Sale and Servicing Agreement or the Receivables Purchase
Agreement or any term or provision thereof, or the performance of any of the terms of any of the foregoing, unless such amendment, waiver or modification shall not, as evidenced by a written opinion
of 

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independent counsel and an officer's certificate delivered to the Insurer, adversely affect in any material respect the interests of the Insurer under this Insurance Agreement or the Policy. 

        (c)  It
shall furnish to the Insurer, promptly after the occurrence of any Event of Servicing Termination under the Sale and Servicing Agreement or of a Trigger Event under
this Insurance Agreement, a
certificate of an appropriate officer of the Servicer setting forth the circumstances of such Event of Servicing Termination or Trigger Event, and any action taken or proposed to be taken by the
Servicer with respect thereto, and furnish to the Insurer such other information with respect to any such Event of Servicing Termination or Trigger Event as the Insurer may reasonably request. 

        (d)  It
shall deliver to the Insurer, within 45 days after the close of each fiscal quarter, a certificate signed by an authorized officer of the Servicer stating
that: 

        (i)    a
review of the Servicer's performance under this Insurance Agreement and the Sale and Servicing Agreement during such period has been made under such officer's
supervision; and 

        (ii)  to
such officer's knowledge, following reasonable inquiry, no event which constitutes, or which with the giving of notice, or lapse of time, or both, would constitute,
an Event of Servicing Termination under the Sale and Servicing Agreement, an Event of Default under the Indenture, or a Trigger Event or a breach of this Insurance Agreement has occurred. 

        (e)  It
will furnish to the Insurer a copy of each material certificate, report, statement, notice or other written communication furnished by or on behalf of it to
Noteholders, Certificateholders or to the Indenture Trustee concurrently therewith and furnish to the Insurer promptly after receipt thereof, a copy of each notice, demand or other communication
received by it from the Indenture Trustee, the Noteholders and Certificateholders or                        ,
                        or any other rating agency rating the Notes and the Certificates, in each case
with respect to any of the Notes, the Certificates or the Transaction Documents. 

        (f)    It
will, on each Determination Date, furnish to the Insurer a copy of the Servicer's Certificate with respect to the related Collection Period and, if not contained
therein, such information regarding the Reserve Account and the Policy, in such form as the Insurer may reasonably require. 

        (g)  It
will, at all times during the term hereof, upon the reasonable request of the Insurer and upon reasonable notice, permit the Insurer or its authorized agent, at no
charge, to inspect and audit the Receivable Files, including those held by any subservicer or custodian and any other documents and records relating to the servicing of the Receivables, including
computer records relating to the Receivables, and will cause its personnel to assist in any examination of such records. Such inspections and discussions shall be conducted during normal business
hours and shall not unreasonably interfere with the business of the Servicer, any such custodian, its normal operations or its employee or customer relations. Any information obtained by the Insurer
pursuant to the activities contemplated in this Section 4.01(g) shall be held in confidence by the Insurer and its agents and personnel unless (i) such information has become available
to the public other than as a result of a disclosure by or through the Insurer or (ii) such information was available to the Insurer on a nonconfidential basis prior to its disclosure to the
Insurer hereunder or (iii) the Insurer should be required in connection with any legal or regulatory proceeding to disclose such information. The Receivable Files and records relating thereto
will be maintained at the addresses and locations as the Servicer shall have notified the Insurer
and its agents and personnel in writing prior to the Closing Date and as the Servicer shall otherwise advise the Insurer in writing. 

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        (h)  It
will furnish to the Insurer the following: 

        (i)    not
later than 90 days after the end of each of the fiscal years of                        , a copy of the consolidated balance
sheet for                        as at the end of
such year and the related statements of income and retained earnings and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year, reported on by
                        or other independent certified public accountants of nationally recognized standing; 

        (ii)  not
later than 90 days after the end of each of the fiscal years
of                        and                 
       , a copy of the balance sheets for                        and
                        as at the end of such year and the related statements of income and retained earnings and of cash flows
for such year, setting forth in each case in comparative form the figures for
the previous year, reported on by                        or other independent certified public accountants of nationally
recognized standing; 

        (iii)  not
later than 45 days after the end of each quarterly period of each of its fiscal years (except for the quarterly periods which coincide with its fiscal year
ends), a copy of its unaudited consolidated balance sheet and, if requested by the Insurer, its unaudited consolidating balance sheet, in each case, as at the end of such quarter, and the related
unaudited statements of income and retained earnings and of consolidated cash flows for such period and the portion of the fiscal year through the end of such period, setting forth in each case in
comparative form the figures for the previous year, certified by the chief financial officer or treasurer of the Servicer as being fairly stated in all respects when considered in relation to its
audited financial statements (subject to normal year-end audit adjustments and the absence of footnotes); and 

        (iv)  from
time to time, such other financial data as the Insurer shall reasonably request; 

all
such financial statements to be complete and correct in all material respects and to be prepared in detail and in accordance with GAAP applied consistently throughout the periods reflected therein
and with prior periods. 

        (i)    It
shall not transfer or otherwise assign its obligations as Servicer under the Sale and Servicing Agreement nor enter into any merger, conversion, or consolidation to
which the Servicer is a party, unless the Insurer shall otherwise consent in writing to any such transfer, assignment or succession;  provided, however, that the consent of the Insurer shall not be
required if (i) the Servicer shall be the surviving entity in any such merger,
conversion, or consolidation or (ii)                         shall, in connection with such transfer or other assignment or
such merger, conversion, or consolidation, execute and deliver to the Insurer
an agreement under which                        assumes the obligations of the Servicer under the Sale and Servicing Agreement and
agrees to perform those obligations in accordance with the standard of
performance set forth in Section    of the Sale and Servicing Agreement. 

        Section 4.02.    Affirmative Covenants of the Depositor.    The Depositor hereby covenants and agrees that
during the term of this Insurance Agreement: 

        (a)  It
shall, for the benefit of the Insurer, perform in all material respects each of its agreements, warranties and indemnities contained in the Receivables Purchase
Agreement, the Sale and Servicing Agreement and the Trust Agreement, which are hereby incorporated by reference into this Insurance Agreement, as if set forth herein in full. 

        (b)  It
shall comply in all material respects with all applicable laws, rules, regulations and orders with respect to it, its business and its properties (except to the
extent contested in good faith if properly reserved in accordance with GAAP or regulatory accounting principles, as the case 

-10-

 

may be, consistently applied), if the effect of noncompliance thereof would have a material adverse effect on its performance of its obligations under the Transaction Documents. 

        (c)  It
shall include in any offering document for the Notes and Certificates only information concerning the Insurer that is supplied or consented to in writing by the
Insurer expressly for inclusion therein. 

        (d)  It
shall deliver to the Insurer, within 30 days after the close of each fiscal year, a certificate signed by an authorized officer of the Depositor stating that,
to such officer's knowledge, following consultation with counsel, the Depositor has determined that it was not necessary or desirable to file any continuation UCC financing statement or other UCC
financing statement during such fiscal year in order to continue the protection of the Trust's interest in the Trust Estate or other assets of the Trust and of the Indenture Trustee's security
interest for the benefit of the Noteholders, the Certificateholders and the Insurer in the Collateral or other assets of the Trust including the interest of the Noteholders, the Certificateholders and
the Insurer in the Reserve Account, or, if the Depositor determined that any such filing was necessary or desirable, describing the reason for any such filing and attaching a copy thereof to such
certificate. 

        (e)  It
shall furnish to the Insurer as soon as available, but in any event within 90 days after the end of each fiscal year, a copy of its unaudited balance sheet as
at the end of such year and the related statements of income and of cash flows for such year, setting forth in each case in comparative form the figures for the previous year; all such financial
statements to be complete and correct in all respects
and to be prepared in detail and in accordance with GAAP applied consistently throughout the periods reflected therein and with prior periods (except as approved by such accountants or officer, as the
case may be, and disclosed therein). 

        (f)    It
shall provide to the Insurer such other information as the Insurer may reasonably require. 

        (g)  It
will remain a wholly owned special purpose direct or indirect subsidiary of Wachovia Bank, National Association. The Depositor was organized for the limited purpose
of engaging solely in the type of transactions described in the Registration Statement, similar future transactions and any activities incidental to and necessary and convenient for the accomplishment
of such purposes. 

        (h)  It
will furnish to the Insurer a copy of each material certificate, report, statement, notice or other written communication furnished by or on behalf of it to
Noteholders, Certificateholders or to the Indenture Trustee concurrently therewith and furnish to the Insurer promptly after receipt thereof, a copy of each notice, demand or other communication
received by it from the Indenture Trustee, the Noteholders and Certificateholders or                        ,
                        or any other rating agency rating the Notes and the Certificates, in each case
with respect to any of the Notes, the Certificates or the Transaction Documents. 

        Section 4.03.    Negative Covenants of the Depositor.    The Depositor hereby covenants and agrees that during
the term of this Insurance Agreement: 

        (a)  It
will not engage at any time in any business or business activity other than such activities expressly set forth in the limited liability company agreement or
certificate of formation of the Depositor delivered to the Insurer on or prior to the Closing Date. 

        (b)  It
will not amend the limited liability company agreement or certificate of formation of the Depositor without the prior written consent of the Insurer. 

        (c)  It
will not, without the prior written consent of the Insurer, consolidate with or merge into any other entity or convey, transfer or lease its properties and assets
substantially as an 

-11-

 

entirety to any entity, or permit any entity to merge into the Depositor or convey, transfer or lease its properties and assets substantially as an entirety to the Depositor. 

        (d)  It
will not: 

        (i)    fail
to do all things necessary to maintain its limited liability company existence separate and apart from any other Person, including, without limitation, holding
regular meetings of its members and its managers and maintaining appropriate limited liability company books and records (including a current minute book); 

        (ii)  suffer
any limitation on the authority of its own managers to conduct its business and affairs in accordance with their independent business judgment or authorize or
suffer any Person other than its own managers to act on its behalf with respect to matters (other than matters customarily delegated to others under powers of attorney) for which a limited liability
company's own managers would customarily be responsible; 

        (iii)  fail
to (A) maintain or cause to be maintained by an agent of the Depositor under the Depositor's control physical possession of all its books and records,
(B) maintain capitalization adequate for the conduct of its business, (C) account for and manage all its liabilities separately from those of any other Person, including payment by it of
all payroll, administrative expenses and taxes, if any, from its own assets, (D) segregate and identify separately all of its assets from those of any other Person, (E) to the extent any
such payments are made, pay its employees, officers and agents for services performed for the Depositor or (F) maintain a separate office address with a separate telephone number from those of
any other Person; or 

        (iv)  except
as may be provided in the Sale and Servicing Agreement (or similar agreements relating to other securitizations pursuant to which the Depositor has similar
rights and obligations to those set forth in the Transaction Documents) commingle its funds with those of any other Person or use its funds for other than the Depositor's uses. 

 
 

ARTICLE V
  FURTHER AGREEMENTS    
  

        Section 5.01.    Obligations Absolute.    The obligations of the Seller, the Servicer and the Depositor
pursuant to this Insurance Agreement are absolute and unconditional and will be paid or performed strictly in accordance with the respective terms hereof, irrespective of: 

        (a)  any
lack of validity or enforceability of the Trust Agreement, the Receivables Purchase Agreement, the Sale and Servicing Agreement, the Indenture or the Indemnification
Agreement; 

        (b)  any
amendment or waiver of, or consent to departure from, the Policy, the Trust Agreement, the Receivables Purchase Agreement, the Sale and Servicing Agreement, the
Indenture or the Indemnification Agreement; 

        (c)  the
existence of any claim, set off, defense or other rights it may have at any time against the Indenture Trustee, any beneficiary or any transferee of the Policy (or
any persons or entities for whom the Indenture Trustee, any such beneficiary or any such transferee may be acting), the Insurer or any other person or entity whether in connection with the Policy, the
Transaction Documents or any unrelated transactions; 

        (d)  any
statement or any other document presented under the Policy (including any Notice for Payment) proving to be forged, fraudulent, invalid or insufficient in any
respect or any statement therein being untrue or inaccurate in any respect whatsoever, provided, that, such 

-12-

 

forgery, fraud, invalidity, insufficiency, untruth or inaccuracy shall not have resulted from the gross negligence or willful misconduct of the Insurer; 

        (e)  the
inaccuracy or alleged inaccuracy of any Servicer's Certificate or Notice for Payment upon which any drawing under the Policy is based,  provided, that, such inaccuracy shall not have resulted from the
gross negligence or willful misconduct of the Insurer; 

        (f)    payment
by the Insurer under the Policy against presentation of a draft or certificate which does not comply with the terms of the relevant Policy,  provided that such payment shall not have constituted gross
negligence or willful misconduct of the Insurer; 

        (g)  the
bankruptcy or insolvency of the Insurer, the Trust or any other party; 

        (h)  any
default or alleged default of the Insurer under the Policy; 

        (i)    any
defense based upon the failure of the Trust to receive all or part of the proceeds of the sale of the Notes and the Certificates or of the Servicer to receive any or
all of the servicing fee or other compensation required under the Sale and Servicing Agreement, the Indenture or otherwise, or any nonapplication or misapplication of the proceeds of any drawing upon
the Policy; and 

        (j)    any
other circumstance or happening whatsoever, provided that the same shall not have constituted gross negligence or
willful misconduct of the Insurer. 

        Section 5.02.    Reinsurance.    The Insurer shall have the right to give participations in its rights under
this Insurance Agreement and to enter into contracts of reinsurance with respect to the Policy, provided that the Insurer agrees that any such
disposition will not alter or affect in any way whatsoever the Insurer's direct obligations hereunder and under the Policy and provided further that any reinsurer or participant will not have any
rights against the Trust, the Seller, the Servicer, the Depositor, any Noteholders or Certificateholders or the Indenture Trustee and that the Trust, the Seller, the Servicer, the Depositor, the
Noteholders or Certificateholders or the Indenture Trustee shall have no obligation to have any communication or relationship whatsoever with any reinsurer or participant in order to enforce the
obligations of the Insurer hereunder and under the Policy. None of the Seller, the Servicer or the Depositor may assign its obligations under this Insurance Agreement without the prior written consent
of the Insurer, such consent not to be unreasonably withheld. 

        Section 5.03.    Liability of the Insurer.    The Seller, the Servicer, the Indenture Trustee, the Owner
Trustee on behalf of the Trust and the Depositor agree that neither the Insurer, nor any of its officers, directors or employees shall be liable or responsible for (except to the extent of its own
gross negligence or willful misconduct): (a) the use which may be made of the Policy by or for any acts or omissions of another Person in connection therewith or (b) the validity,
sufficiency, accuracy or genuineness of any documents delivered to the Insurer (or its Fiscal Agent), or of any endorsement(s) thereon, even if such documents should in fact prove to be in any or all
respects invalid, insufficient, fraudulent or forged. In furtherance and not in limitation of the foregoing, the Insurer (or its Fiscal Agent) may accept documents that appear on their face to be in
order, without responsibility for further investigation. 

        Section 5.04.    Successor Servicer.    Any successor Servicer, by accepting its appointment pursuant to the
Sale and Servicing Agreement, (a) shall agree to be bound by the terms, covenants and conditions contained herein applicable to the Servicer and subject to the duties and obligations of the
Servicer hereunder, (b) as of the date of its acceptance, shall be deemed to have made with respect to itself the representations and warranties made by the Servicer in this Insurance Agreement
to the extent applicable, and (c) shall agree to indemnify and hold harmless the Insurer from and against any and all claims, damages, losses, liabilities, costs or expenses whatsoever which
the Insurer may incur (or which may be claimed against the Insurer) by reason of the negligence or willful misconduct of the 

-13-

 

successor Servicer in exercising its powers and carrying out its obligations as Servicer under the Sale and Servicing Agreement. No such appointment shall make the successor Servicer responsible with
respect to any liabilities of the outgoing Servicer incurred prior to such appointment or for any acts, omissions or misrepresentations of such outgoing Servicer. 

        Section 5.05.    Fees and Expenses.    

        (a)              agrees
to pay, in accordance with the Premium Side Letter Agreement, the Insurer's attorney fees plus expenses, and all other reasonable costs and
expenses (including without limitation accountants'
fees) incurred by the Insurer in connection with the negotiation, preparation, execution and delivery of the Prospectus, this Insurance Agreement, the Policy, the Trust Agreement, the Sale and
Servicing Agreement, the Indenture, the Receivables Purchase Agreement, the Indemnification Agreement and all other documents delivered with respect thereto, and all rating agency fees incurred at any
time by the Insurer in connection with this Insurance Agreement and the transactions described in the Trust Agreement, the Sale and Servicing Agreement and the Indenture. Such attorney's fees and
expenses shall be payable on the Closing Date upon the presentation of an invoice for any such fees, costs and expenses. All other costs and expenses payable hereunder shall be payable within
45 days from the delivery of an invoice therefor to            by the Insurer. 

        (b)              agrees
to pay all reasonable costs and expenses (including reasonable fees and expenses of legal counsel) incurred by the Insurer in connection with the
amendment, modification, waiver or similar action and/or the enforcement against the Seller, the Servicer or the Depositor, as the case may be, of the Insurer's rights under this Insurance Agreement,
the Policy, the Trust Agreement, the Sale and Servicing Agreement, the Receivables Purchase Agreement, the Indenture and/or the Indemnification Agreement. 

 
 

ARTICLE VI
  TRIGGER EVENTS; REMEDIES    
  

        Section 6.01.    Trigger Events.    

        (a)  The
occurrence of any of the following events shall constitute a Trigger Event hereunder: 

        (i)    the
Seller, the Servicer or the Depositor, as the case may be, shall fail to pay when due any amount payable by it hereunder, or under the Indenture or the Sale and
Servicing Agreement, which failure shall continue for two (2) Business Days after receipt of notice thereof by the Seller, the Servicer or the Depositor, as the case may be; 

        (ii)  an
"Event of Servicing Termination" occurs under the Sale and Servicing Agreement or an "Event of Default" occurs under
the Indenture; 

        (iii)  any
representation or warranty made by the Seller, the Servicer or the Depositor in any of the Transaction Documents proves to have been false or misleading in any
material respect as of the date made; 

        (iv)  the
Insurer reasonably determines that the performance of the Servicer under the Sale and Servicing Agreement is not in compliance with Servicing Standards, which
failure shall continue for 10 Business Days from the receipt of notice thereof by the Servicer; 

        (v)  the
Seller, the Servicer or the Depositor shall have materially breached any covenant or agreement contained herein or in the Sale and Servicing Agreement, which breach
shall continue for 10 Business Days after the receipt of notice thereof by the breaching party; 

        (vi)  the
occurrence of an Insolvency Event with respect to the Servicer, the Seller, the Depositor or the Trust; 

-14-

 

        (vii) the
security interests, as defined in the UCC, of the Indenture Trustee in the Collateral shall cease to be effective or shall cease to be a first priority perfected
security interest (subject to liens permitted under the Transaction Documents); 

        (viii)  the
Rolling 3-Month Delinquency Rate shall exceed    % with respect to any Distribution Date in the first    months
following the Closing Date, and    % thereafter; 

        (ix)  a
Cumulative Net Loss Trigger Event shall have occurred; or 

        (x)  subject
to Section 7.03 hereof, any of the Transaction Documents or any other agreement ancillary or incidental thereto shall cease to be in full force and
effect. 

        (b)  Upon
the occurrence of any Trigger Event, the Insurer, so long as no Insurer Default has occurred or is continuing, may: 

        (i)    inform
the Indenture Trustee, the Owner Trustee and each Rating Agency in writing or by facsimile transmission of the occurrence of any Trigger Event and of any other
information the Insurer may have with respect to the performance of the Servicer; 

        (ii)  instruct
the Owner Trustee in writing or by facsimile transmission to deliver a notice of termination of all the rights and obligations of the Servicer to the Servicer
and appoint a successor Servicer as designated by the Insurer, in accordance with the Sale and Servicing Agreement; 

        (iii)  instruct
the Servicer, the Owner Trustee, the Indenture Trustee and the successor Servicer, if any, in writing or by facsimile transmission to intercept all payments
made under the Receivables by Obligors and redirect such payments directly to the Collection Account; 

        (iv)  receive
delivery from the Servicer to the Insurer or direct delivery by the Servicer to the successor Servicer designated by the Insurer, of the Receivable Files and
all data and material necessary for the immediate servicing and collection of the Receivables by the Insurer or the successor Servicer designated by the Insurer; 

        (v)  instruct
the Indenture Trustee and/or the Trust to amend title documents and do such other acts to the extent necessary to perfect the Trust's security interest in the
Financed Vehicles; and 

        (vi)  cause
the Required Reserve Account Amount to be equal to the Policy Amount. 

 
 

ARTICLE VII
  MISCELLANEOUS    
  

        Section 7.01.    Amendments, Etc.    No amendment or waiver of any provision of this Insurance Agreement, nor
consent to any departure therefrom, shall in any event be effective unless in writing and signed by all of the parties hereto, with written notice thereof
to                        and                 
       ;  provided that any waiver so granted shall extend only to the specific event or occurrence so waived and not to any other similar event or occurrence
which occurs subsequent to the date of such waiver. 

        Section 7.02.    Notices.    Except to the extent otherwise expressly provided herein, all notices, requests
and demands to or upon the respective parties hereto to be effective shall be in writing (and if sent by mail, certified or registered, return receipt requested) or facsimile transmission and, unless
otherwise expressly provided herein, shall be deemed to have been duly given or made when delivered by hand, or three (3) Business Days after being deposited in the mail, postage prepaid, or,
in the case 

-15-

 

of facsimile transmission, when sent, addressed as follows or to such other address or facsimile number as set forth in a written notice delivered by a party to each other party hereto: 

	If to the Seller or the Servicer:	 	 
	

	
 	

 
	

	
 	

 
	

	
 	

 
	 	 	 
	

 Attention:	
 	

 
	

 Telephone:	
 	

 
	

 Facsimile:	
 	

 
	

If to the Depositor:	
 	

 
	

Pooled Auto Securities Shelf LLC

One Wachovia Center

Charlotte, North Carolina 28288

Attention: General Counsel

Telephone: [        ]

Facsimile: [        ]	
 	

 
	

If to the Insurer:	
 	

 
	

	
 	

 
	

	
 	

 
	

	
 	

 
	 	 	 
	

 Attention:	
 	

 
	

 Telephone:	
 	

 
	

 Facsimile:	
 	

 
	

If to the Trust:	
 	

 
	

	
 	

 
	c/o	 	 
	

	
 	

 
	

	
 	

 
	

	
 	

 
	 	 	 
	

 Attention:	
 	

 
	

 Telephone:	
 	

 
	

 Facsimile:	
 	

 

        Section 7.03.    No Waiver; Remedies and Severability.    No failure on the part of the Insurer to exercise,
and no delay in exercising, any right hereunder shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the
exercise of any other right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. The parties further agree that the holding by any court of competent
jurisdiction that 

-16-

 

any remedy pursued by the Insurer hereunder is unavailable or unenforceable shall not affect in any way the ability of the Insurer to pursue any other remedy available to it. In the event any
provision of this Insurance Agreement shall be held invalid or unenforceable by any court of competent jurisdiction, the parties hereto agree that such holding shall not invalidate or render
unenforceable any other provision hereof. 

        Section 7.04.    Payments.    

        (a)  All
payments to the Insurer hereunder shall be made in lawful currency of the United States and in immediately available funds and, except for payments required to be
made pursuant to Section 2.04 hereof, shall be made prior to 2:00 p.m. (            time) on the date such payment is due by wire transfer
to                        ABA
#                        
Account: #                        , for credit
to                        account
Re:                        or to such other office or account as the Insurer may direct. Payments received by the Insurer after
2:00 p.m. (            time) shall be deemed to have been received on the next succeeding Business Day, and such extension of time shall be included in computing interest, commissions
or
fees, if any, in connection with such payment. 

        (b)  Whenever
any payment under this Insurance Agreement shall be stated to be due on a day which is not a Business Day, such payment shall be made on the next succeeding
Business Day, and such extension of time shall in such cases be included in computing interest, commissions or fees, if any, in connection with such payment. 

        (c)  Unless
otherwise specified herein, the Insurer shall be entitled to interest on all amounts owed to the Insurer under this Insurance Agreement at a rate of interest
equal to the Base Rate from time to time in effect plus    %. 

        (d)  Unless
otherwise specified herein, interest payable to the Insurer under this Insurance Agreement shall be calculated on the basis of a 360 day year and the
actual number of days elapsed and shall be payable on demand. 

        Section 7.05.    GOVERNING LAW AND JURY TRIAL
WAIVER.    THIS INSURANCE AGREEMENT SHALL BE CONSTRUED, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED,
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO CONFLICT OF LAWS PRINCIPLES AND THE
APPLICATION OF THE LAWS OF ANY OTHER JURISDICTION). EACH PARTY HERETO HEREBY IRREVOCABLY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS INSURANCE
AGREEMENT, THE POLICY OR ANY TRANSACTION CONTEMPLATED HEREBY, THEREBY OR BY THE SALE AND SERVICING AGREEMENT OR BY THE INDENTURE AND FOR ANY COUNTERCLAIM THEREIN.

        Section 7.06.    Counterparts.    This Insurance Agreement may be executed in counterparts by the parties
hereto, and each such counterpart shall be considered an original and all such counterparts shall constitute one and the same instrument. 

        Section 7.07.    Paragraph Headings, Etc.    The headings of paragraphs contained in this Insurance Agreement
are provided for convenience only. They form no part of this Insurance Agreement and shall not affect its construction or interpretation. 

        Section 7.08.    Rights, Powers, Immunities and Indemnities of Indenture Trustee.    The Indenture Trustee
shall be afforded all of the rights, powers, immunities and indemnities of the Indenture Trustee set forth in the Indenture as if such rights, powers, immunities and indemnities were specifically set
forth herein. 

        Section 7.09.    Limitation of Liability.    It is expressly understood and agreed by the parties hereto that
(a) this Agreement is executed and delivered by                        , not individually or personally but solely as Owner
Trustee of the Trust, in the exercise of the powers and authority conferred
and vested 

-17-

 

in it under the Trust Agreement, (b) each of the representations, undertakings and agreements herein made on the part of the Trust is made and intended not as personal representations,
undertakings and agreements by                        but is made and intended for the purpose for binding only the Trust,
(c) nothing herein contained shall be construed as creating any liability on
                        , individually or personally, to perform any covenant either expressed or implied contained herein, all
such liability, if any, being expressly waived by the parties hereto and by any
Person claiming by, through or under the parties hereto and (d) under no circumstances shall                        be
personally liable for the payment of any indebtedness or expenses of the Trust or
be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Trust under this Agreement or any other related document. 

-18-

 

        IN
WITNESS WHEREOF, the parties hereto have executed this Insurance Agreement, all as of the day and year first above mentioned. 

	 	 	
	 
	

 	
 	

By:	

 	

 
	 	 	 	
 Name:

Title:
	

 	
 	

	

,
	 	 	individually, as Seller and as Servicer
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

POOLED AUTO SECURITIES SHELF LLC,

as Depositor
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

	

 	
 	

By:	

	

,
	 	 	 	as Owner Trustee
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:
	

 	
 	

	

,
	 	 	as Indenture Trustee
	

 	
 	

By:	

 
	 	 	 	
 Name:

Title:

-19-

EXHIBIT A  

 
 

FORM OF POLICY    
  

QuickLinks

PRELIMINARY STATEMENTS

ARTICLE I DEFINITIONS

ARTICLE II THE POLICY AND REIMBURSEMENT

ARTICLE III REPRESENTATIONS AND WARRANTIES

ARTICLE IV COVENANTS

ARTICLE V FURTHER AGREEMENTS

ARTICLE VI TRIGGER EVENTS; REMEDIES

ARTICLE VII MISCELLANEOUS

FORM OF POLICY<PAGE>
                                                                    EXHIBIT 4(a)

                            OXFORD HEALTH PLANS, INC.

                     2002 EQUITY INCENTIVE COMPENSATION PLAN
<PAGE>
                                Table of Contents

<TABLE>
<CAPTION>
                                                                         Page
                                                                         ----
<S>   <C>                                                                <C>
                                   ARTICLE I.
                                     GENERAL

1.1   Purpose.............................................................1
1.2   Definitions of Certain Terms........................................1
1.3   Administration......................................................2
1.4   Persons Eligible for Awards.........................................3
1.5   Types of Awards Under Plan..........................................3
1.6   Shares Available for Awards.........................................3

                                   ARTICLE II.
                              AWARDS UNDER THE PLAN

2.1   Award Agreements....................................................4
2.2   No Rights as a Shareholder..........................................4
2.3   Grant of Stock Options and Stock Appreciation Rights ...............4
2.4   Exercise of Stock Options and Stock Appreciation Rights.............5
2.5   Termination of Employment...........................................6
2.6   Grant of Restricted Stock...........................................6
2.7   Grant of Restricted Stock Units.....................................7
2.8   Grant of Performance Shares and Share Units.........................7
2.9   Other Stock-Based Awards............................................7
2.10  Grant of Dividend Equivalent Rights.................................8

                                  ARTICLE III.
                                  MISCELLANEOUS

3.1   Amendment of the Plan; Modification of Awards.......................8
3.2   Tax Withholding.....................................................8
3.3   Restrictions........................................................9
3.4   Nonassignability....................................................9
3.5   Requirement of Notification of  Election Under Section 83(b)
        of the Code.......................................................9
3.6   Requirement of Notification Upon Disqualifying  Disposition
        Under Section 421(b) of the Code..................................9
3.7   Change in Control..................................................10
3.8   Sale of Subsidiary.................................................12
3.9   No Right to Employment.............................................12
3.10  Nature of Payments.................................................12
3.11  Non-Uniform Determinations.........................................12
3.12  Other Payments or Awards...........................................12
3.13  Section Headings...................................................12
3.14  Effective Date and Term of Plan....................................12
3.15  Governing Law......................................................13
3.16  Severability; Entire Agreement.....................................13
3.17  No Third Party Beneficiaries.......................................13
3.18  Successors and Assigns.............................................13
</TABLE>
<PAGE>
                                    ARTICLE I
                                     GENERAL

1.1   Purpose

            The purpose of the Oxford Health Plans, Inc. 2002 Equity Incentive
Compensation Plan (the "Plan") is to provide an incentive for current and
prospective key employees, directors of, and consultants to, Oxford Health
Plans, Inc. (the "Company") and its subsidiaries and affiliates to acquire a
proprietary interest in the success of the Company, to enhance the long-term
performance of the Company and to remain in the service of the Company and its
subsidiaries and affiliates.

1.2   Definitions of Certain Terms

            (a) "Award" means an award under the Plan as described in Section
1.5 and Article II.

            (b) "Award Agreement" means a written agreement entered into between
the Company and a Grantee in connection with an Award.

            (c) "Board" means the Board of Directors of the Company.

            (d) "Code" means the Internal Revenue Code of 1986, as amended.

            (e) "Committee" means a committee whose members shall, from time to
time, be appointed by the Board according to Section 1.3(a) of this Plan.

            (f) "Common Stock" means the common stock of the Company, par value
$0.01.

            (g) "Employment" means the Grantee being an employee of the Company
or any of its subsidiaries, or in the case of a Grantee who is not an employee
of the Company, the Grantee's association with the Company as a director,
consultant or otherwise.

            (h) "Exchange Act" means the Securities Exchange Act of 1934, as
amended.

            (i) The "Fair Market Value" of a share of Common Stock on any date
shall be (i) the closing sale price per share of Common Stock during normal
trading hours on the national securities exchange on which the Common Stock is
principally traded for such date or the last preceding date on which there was a
sale of such Common Stock on such exchange, or (ii) if the shares of Common
Stock are then traded in an over-the-counter market, the average of the closing
bid and asked prices for the shares of Common Stock during normal trading hours
in such over-the-counter market for such date or the last preceding date on
which there was a sale of such Common Stock in such market, or (iii) if the
shares of Common Stock are not then listed on a national securities exchange or
traded in an over-the-counter market, such value as the Committee, in its sole
discretion, shall determine.

            (j) "Grantee" means a person who receives an Award.

            (k) "Incentive Stock Option" means a stock option that is intended
to qualify for special federal income tax treatment pursuant to Sections 421 and
422 of the Code (or a successor provision thereof) and which is so designated in
the applicable Award Agreement. Under no circumstances shall any stock option
that is not specifically designated as an Incentive Stock Option be considered
an Incentive Stock Option. Any option that is not an Incentive Stock Option is
referred to herein as a "nonqualified stock option".

                                       1
<PAGE>
            (l) "Key Persons" means directors, officers and other employees of
the Company or of a Related Entity, and consultants to the Company or a Related
Entity.

            (m) "Option Exercise Price" means the amount payable by a Grantee on
the exercise of a stock option.

            (n) "Related Entity" means any parent or subsidiary corporation of
the Company or any business, corporation, partnership, limited liability company
or other entity in which the Company or a parent or a subsidiary corporation
holds a controlling ownership interest, directly or indirectly.

            (o) "Rule 16b-3" means Rule 16b-3 under the Exchange Act.

            (p) Unless otherwise determined by the Committee, a Grantee shall be
deemed to have a "Termination of Employment" upon ceasing employment with the
Company and all Related Entities. The Committee in its discretion may determine
(a) whether any leave of absence constitutes a Termination of Employment for
purposes of the Plan, (b) the impact, if any, of any such leave of absence on
Awards theretofore made under the Plan, and (c) when a change in a Grantee's
association with the Company constitutes a Termination of Employment for
purposes of the Plan. The Committee may also determine whether a Grantee's
Termination of Employment is for cause and the date of termination in such case.

1.3   Administration

            (a) The Plan shall be administered by the Committee, which shall
consist of not less than two directors all of whom shall be "non-employee
directors" under Rule 16b-3, and "outside directors" under Section 162(m) of the
Code. The Committee may delegate any of its powers under the Plan to a
subcommittee of the Committee consisting of non-employee directors and outside
directors and to such officers of the Company as the Committee may select,
consistent with applicable law.

            (b) The Committee or a subcommittee thereof (which hereinafter shall
also be referred to as the Committee) shall have the authority (i) to exercise
all of the powers granted to it under the Plan, (ii) to construe, interpret and
implement the Plan and any Award Agreements, (iii) to prescribe, amend and
rescind rules and regulations relating to the Plan, including rules governing
its own operations, (iv) to make all determinations necessary or advisable in
administering the Plan, (v) to correct any defect, supply any omission and
reconcile any inconsistency in the Plan, (vi) to amend the Plan to reflect
changes in applicable law, (vii) to determine whether, to what extent and under
what circumstances Awards may be settled or exercised in cash, shares of Common
Stock, other securities, other Awards or other property, or canceled, forfeited
or suspended and the method or methods by which Awards may be settled, canceled,
forfeited or suspended, and (viii) to determine whether, to what extent and
under what circumstances cash, shares of Common Stock, other securities, other
Awards or other property and other amounts payable with respect to an Award
shall be deferred either automatically or at the election of the holder thereof
or of the Committee.

            (c) Actions of the Committee shall be taken by the vote of a
majority of its members. Any action may be taken by a written instrument signed
by a majority of the Committee members, and action so taken shall be fully as
effective as if it had been taken by a vote at a meeting.

            (d) The determination of the Committee on all matters relating to
the Plan or any Award Agreement shall be final, binding and conclusive.

            (e) No member of the Committee shall be liable for any action or
determination made in good faith with respect to the Plan or any Award.

                                       2
<PAGE>
            (f) Notwithstanding anything to the contrary contained herein: (a)
until the Board shall appoint the members of the Committee, the Plan shall be
administered by the Board and (b) the Board may, in its sole discretion, at any
time and from time to time, grant Awards or resolve to administer the Plan. In
either of the foregoing events, the Board shall have all of the authority and
responsibility granted to the Committee herein.

1.4   Persons Eligible for Awards

            Awards under the Plan may be made to such Key Persons as the
Committee shall select in its discretion.

1.5   Types of Awards Under Plan

            Awards may be made under the Plan in the form of stock options,
including Incentive Stock Options, nonqualified stock options, stock
appreciation rights, restricted stock, restricted stock units, performance
shares and share units and other stock-based Awards, as set forth in Article II.
For purposes of this plan, references to issuances of stock certificates shall
include book-entry registration or comparable means of recording share ownership
in the company's books and records.

1.6   Shares Available for Awards

            (a) Total shares available. The total number of shares of Common
Stock, which may be transferred pursuant to Awards granted under the Plan shall
not exceed 8,350,000 shares; provided, however, that the amount of shares
available to be awarded as restricted stock, performance shares, performance
units, stock grants or other stock-based Awards as specified in Section 2.9
hereof is limited to an aggregate of 750,000 shares. Such shares may be
authorized but unissued Common Stock or authorized and issued Common Stock held
in the Company's treasury or acquired by the Company for the purposes of the
Plan. If any Award is forfeited or otherwise terminates or is canceled without
the delivery of shares of Common Stock, shares of Common Stock are surrendered
or withheld from any Award to satisfy a Grantee's income tax withholding
obligations, or shares of Common Stock owned by a Grantee are tendered to pay
the exercise price of options granted under the Plan, then the shares covered by
such forfeited, terminated or canceled Award or which are equal to the number of
shares surrendered, withheld or tendered shall again become available for
transfer pursuant to Awards granted or to be granted under this Plan. Any shares
of Common Stock delivered by the Company, any shares of Common Stock with
respect to which Awards are made by the Company and any shares of Common Stock
with respect to which the Company becomes obligated to make Awards, through the
assumption of, or in substitution for, outstanding awards previously granted by
an acquired entity, shall not be counted against the shares available for Awards
under this Plan.

            (b) Individual Limit. The total number of shares of Common Stock
with respect to which stock options and stock appreciation rights may be granted
to any one employee of the Company during any one calendar year shall not exceed
2,000,000.

            (c) Adjustments. The number of shares of Common Stock covered by
each outstanding Award, the number of shares available for Awards, the number of
shares that may be subject to Awards to any one Grantee, and the price per share
of Common Stock covered by each such outstanding Award shall be proportionately
adjusted, as determined in the sole discretion of the Committee, for any
increase or decrease in the number of issued shares of Common Stock resulting
from a stock split, reverse stock split, stock dividend, recapitalization,
combination or reclassification of the Common Stock, or any other increase or
decrease in the number of issued shares of Common Stock effected without receipt
of consideration by the Company or to reflect any distributions to holders of
Common Stock other than regular cash dividends; provided, however, that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration." Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of

                                       3
<PAGE>
stock of any class, shall affect, and no adjustment by reason thereof shall be
made with respect to, the number or price of shares of Common Stock subject to
an Award. After any adjustment made pursuant to this paragraph, the number of
shares subject to each outstanding Award shall be rounded to the nearest whole
number.

                                  ARTICLE II..
                              AWARDS UNDER THE PLAN

2.1   Award Agreements

            Each Award granted under the Plan shall be evidenced by an Award
Agreement which shall contain such provisions as the Committee in its discretion
deems necessary or desirable. The Committee may grant Awards in tandem with or
in substitution for any other Award or Awards granted under this Plan or any
award granted under any other plan of the Company. No Award granted under the
Plan shall have a term in excess of seven years. Payments or transfers to be
made by the Company upon the grant, exercise or payment of an Award may be made
in such form as the Committee shall determine, including cash, shares of Common
Stock, other securities, other Awards or other property and may be made in a
single payment or transfer, in installments or on a deferred basis. A Grantee
shall have no rights with respect to an Award unless such Grantee accepts the
Award within such period as the Committee shall specify by executing an Award
Agreement in such form as the Committee shall determine and, if the Committee
shall so require, makes payment to the Company in such amount as the Committee
may determine. The Committee shall determine if loans (whether or not secured by
shares of Common Stock) may be extended or guaranteed by the Company with
respect to any Awards.

2.2   No Rights as a Shareholder

            No Grantee of an Award (or other person having rights pursuant to
such Award) shall have any of the rights of a shareholder of the Company with
respect to shares subject to such Award until the issuance of a stock
certificate to such person for such shares. Except as otherwise provided in
Section 1.6(c), no adjustment shall be made for dividends, distributions or
other rights (whether ordinary or extraordinary, and whether in cash, securities
or other property) for which the record date is prior to the date such stock
certificate is issued.

2.3   Grant of Stock Options and Stock Appreciation Rights

            (a) The Committee may grant stock options, including Incentive Stock
Options to purchase shares of Common Stock from the Company, to such Key
Persons, in such amounts and subject to such terms and conditions, as the
Committee shall determine in its discretion; provided, however, the Committee is
not permitted to grant reload stock options. Incentive Stock Options may be
granted only to persons employed with the Company or any of its subsidiaries.
All shares available under the plan are eligible to be awarded as Incentive
Stock Options. In the case of a grant of an Award to an employee of a subsidiary
(meaning a subsidiary as defined in Section 424(f) of the Code) of the Company,
the Company may, if the Committee so directs, issue or transfer the shares, if
any, covered by the Award to the subsidiary, for such lawful consideration as
the Committee may specify, upon the condition or understanding that the
subsidiary will transfer the shares to the employee in accordance with the terms
of the provisions of the Plan.

            (b) The Committee may grant stock appreciation rights to such Key
Persons, in such amounts and subject to such terms and conditions, as the
Committee shall determine in its discretion. Stock appreciation rights may be
granted in connection with all or any part of, or independently of, any stock
option granted under the Plan. A stock appreciation right may be granted at or
after the time of grant of such option.

                                       4
<PAGE>
            (c) The Grantee of a stock appreciation right shall have the right,
subject to the terms of the Plan and the applicable Award Agreement, to receive
from the Company an amount equal to (a) the excess of the Fair Market Value of a
share of Common Stock on the date of exercise of the stock appreciation right
over (b) the exercise price of such right as set forth in the Award Agreement
(or over the option exercise price if the stock appreciation right is granted in
connection with a stock option), multiplied by (c) the number of shares with
respect to which the stock appreciation right is exercised. Payment to the
Grantee upon exercise of a stock appreciation right shall be made in cash or in
shares of Common Stock (valued at their Fair Market Value on the date of
exercise of the stock appreciation right) or both, as the Committee shall
determine in its discretion. Upon the exercise of a stock appreciation right
granted in connection with a stock option, the number of shares subject to the
option shall be correspondingly reduced by the number of shares with respect to
which the stock appreciation right is exercised. Upon the exercise of a stock
option in connection with which a stock appreciation right has been granted, the
number of shares subject to the stock appreciation right shall be
correspondingly reduced by the number of shares with respect to which the option
is exercised.

            (d) Each Award Agreement with respect to a stock option shall set
forth the Option Exercise Price, which shall be at least 100% of the Fair Market
Value of a share of Common Stock on the date the option is granted (except as
permitted in connection with the assumption or issuance of options in a
transaction to which Section 424(a) of the Code applies).

            (e) Subject to Section 2.1 hereof, each Award Agreement with respect
to a stock option or stock appreciation right shall set forth the periods during
which the Award evidenced thereby shall be exercisable, whether in whole or in
part. Such periods shall be determined by the Committee in its discretion.

            (f) To the extent that the aggregate Fair Market Value (determined
as of the time the option is granted) of the stock with respect to which
Incentive Stock Options granted under this Plan and all other plans of the
Company are first exercisable by any Grantee during any calendar year shall
exceed the maximum limit (currently, $100,000), if any, imposed from time to
time under Section 422 of the Code, such options shall be treated as
nonqualified stock options.

            (g) Notwithstanding the provisions of Sections 2.3(d) and (e), to
the extent required under Section 422 of the Code, an Incentive Stock option may
not be granted under the Plan to an individual who, at the time the option is
granted, owns stock possessing more than 10% of the total combined voting power
of all classes of stock of his or her employer corporation or of its parent or
subsidiary corporations (as such ownership may be determined for purposes of
Section 422(b)(6) of the Code) unless (i) at the time such Incentive Stock
Option is granted the Option Exercise Price is at least 110% of the Fair Market
Value of the shares subject thereto and (ii) the Incentive Stock Option by its
terms is not exercisable after the expiration of five (5) years from the date
granted.

2.4   Exercise of Stock Options and Stock Appreciation Rights

            Each stock option or stock appreciation right granted under the Plan
shall be exercisable as follows:

            (a) A stock option or stock appreciation right shall become
exercisable at such time or times as determined by the Committee.

            (b) Unless the applicable Award Agreement otherwise provides, a
stock option or stock appreciation right may be exercised from time to time as
to all or part of the shares as to which such Award is then exercisable (but, in
any event, only for whole shares). A stock appreciation right granted in
connection with an option may be exercised at any time when, and to the same
extent that, the related option may be exercised. A stock option or stock
appreciation right shall be exercised by written notice to the Company, on such
form and in such manner as the Committee shall prescribe.

                                       5
<PAGE>
            (c) Any written notice of exercise of a stock option shall be
accompanied by payment of the Option Exercise Price for the shares being
purchased. Such payment shall be made (i) in cash (by certified check or as
otherwise permitted by the Committee), or (ii) to the extent specified in the
Award Agreement (A) by delivery of shares of Common Stock (which, if acquired
pursuant to the exercise of a stock option or under an Award made under this
Plan or any other compensatory plan of the Company, were acquired at least six
(6) months prior to the option exercise date) having a Fair Market Value
(determined as of the exercise date) equal to all or part of the Option Exercise
Price and cash for any remaining portion of the Option Exercise Price, or (B) to
the extent permitted by law, by such other method as the Committee may from time
to time prescribe, including a cashless exercise procedure through a
broker-dealer.

            (d) Promptly after receiving payment of the full Option Exercise
Price, the Company shall, subject to the provisions of Section 3.3 (relating to
certain restrictions), deliver to the Grantee or to such other person as may
then have the right to exercise the Award, a certificate or certificates for the
shares of Common Stock for which the Award has been exercised. If the method of
payment employed upon option exercise so requires, and if applicable law
permits, a Grantee may direct the Company to deliver the certificate(s) to the
Grantee's broker-dealer.

2.5   Termination of Employment

            (a) Unless otherwise provided in the Award Agreement, if a Grantee's
Employment terminates for any reason other than death, the Grantee may exercise
any outstanding stock option or stock appreciation right on the following terms
and conditions: (i) exercise may be made only to the extent that the Grantee was
entitled to exercise the Award on the date of the Termination of Employment, and
(ii) exercise must occur within 90 days after the Termination of Employment,
except that this 90-day period shall be increased to 365 days if the termination
is by reason of disability, but in no event after the expiration date of the
Award as set forth in the Award Agreement. In the case of an Incentive Stock
Option, the term "disability" for purposes of the preceding sentence shall have
the meaning given to it by Section 422(c)(6) of the Code.

            (b) If a Grantee dies while employed by the Company or a Related
Entity, or after a Termination of Employment but during the period in which the
Grantee's Awards are exercisable pursuant to paragraph (a) above, exercise must
occur by the earlier of the first anniversary of the Grantee's death or the
expiration date of the Award. Any such exercise of an Award following a
Grantee's death shall be made only by the Grantee's executor or administrator,
unless the Grantee's will specifically disposes of such Award, in which case
such exercise shall be made only by the recipient of such specific disposition.
If a Grantee's personal representative or the recipient of a specific
disposition under the Grantee's will shall be entitled to exercise any Award
pursuant to the preceding sentence, such representative or recipient shall be
bound by all the terms and conditions of the Plan and the applicable Award
Agreement which would have applied to the Grantee.

2.6   Grant of Restricted Stock

            (a) The Committee may grant restricted shares of Common Stock to
such Key Persons, in such amounts, and subject to such terms and conditions as
the Committee shall determine in its discretion. Restricted stock Awards may be
made independently of or in connection with any other Award.

            (b) Any restricted stock granted under the Plan may be evidenced in
such manner as the Committee may deem appropriate, including without limitation,
book-entry registration or issuance of a stock certificate or certificates. In
the event any stock certificate is issued in respect of shares of restricted
stock granted under the Plan, such certificate shall be registered in the name
of the Participant and shall bear an appropriate legend referring to the terms,
conditions, and restrictions applicable to such restricted stock.

                                       6
<PAGE>
            (c) Unless the Committee shall otherwise determine, any certificate
issued evidencing shares of restricted stock shall remain in the possession of
the Company until such shares are free of any restrictions specified in the
applicable Award Agreement.

            (d) Shares of restricted stock may not be sold, assigned,
transferred, pledged or otherwise encumbered or disposed of except as
specifically provided in this Plan and the applicable Award Agreement. The
Committee at the time of grant shall specify the date or dates (which may depend
upon or be related to the attainment of performance goals and other conditions)
on which the nontransferability of the restricted stock shall lapse. Unless the
applicable Award Agreement provides otherwise, additional shares of Common Stock
or other property distributed to the Grantee in respect of shares of restricted
stock, as dividends or otherwise, shall be subject to the same restrictions
applicable to such restricted stock.

            (e) During the 90 days following the Grantee's Termination of
Employment for any reason, the Company shall have the right to require the
return of any shares to which restrictions on transferability apply, in exchange
for which the Company shall repay to the Grantee (or the Grantee's estate) in
cash the amount paid to the Company, if any, by the Grantee for such shares.

2.7   Grant of Restricted Stock Units

            (a) The Committee may grant Awards of restricted stock units to such
Key Persons, in such amounts, and subject to such terms and conditions as the
Committee shall determine in its discretion, subject to the provisions of the
Plan. Restricted stock units may be awarded independently of or in connection
with any other Award under the Plan.

            (b) At the time of grant, the Committee shall specify the date or
dates on which the restricted stock units shall become vested, and may specify
such conditions to vesting as it deems appropriate. Unless otherwise determined
by the Committee, in the event of the Grantee's Termination of Employment for
any reason, restricted stock units that have not vested shall be forfeited and
canceled.

            (c) At the time of grant, the Committee shall specify the maturity
date applicable to each grant of restricted stock units, which may be determined
in consultation with the Grantee. Such date may be later than the vesting date
or dates of the Award. On the maturity date, the Company shall transfer to the
Grantee one unrestricted, fully transferable share of Common Stock for each
vested restricted stock unit scheduled to be paid out on such date and as to
which all other conditions to the transfer have been fully satisfied. The
Committee shall specify the purchase price, if any, to be paid by the Grantee to
the Company for such shares of Common Stock.

2.8   Grant of Performance Shares and Share Units

            The Committee may grant performance shares in the form of actual
shares of Common Stock or share units having a value equal to an identical
number of shares of Common Stock to such Key Persons, in such amounts, and
subject to such terms and conditions as the Committee shall determine in its
discretion. In the event that a stock certificate is issued in respect of
performance shares, such certificates shall be registered in the name of the
Grantee but shall be held by the Company until the time the performance shares
are earned. The performance conditions and the length of the performance period
shall be determined by the Committee. The Committee shall determine in its sole
discretion whether performance shares granted in the form of share units shall
be paid in cash, Common Stock, or a combination of cash and Common Stock.

2.9   Other Stock-Based Awards

            The Committee may grant other types of stock-based Awards to such
Key Persons, in such amounts and subject to such terms and conditions, as the
Committee shall in its discretion determine. Such Awards may entail the transfer
of actual shares of Common Stock, or payment in cash or otherwise of

                                       7
<PAGE>
amounts based on the value of shares of Common Stock.

2.10  Grant of Dividend Equivalent Rights

            The Committee may in its discretion include in the Award Agreement
with respect to any Award a dividend equivalent right entitling the Grantee to
receive amounts equal to the ordinary dividends that would be paid, during the
time such Award is outstanding and unexercised, on the shares of Common Stock
covered by such Award if such shares were then outstanding. In the event such a
provision is included in an Award Agreement, the Committee shall determine
whether such payments shall be made in cash, in shares of Common Stock or in
another form, whether they shall be conditioned upon the exercise of the Award
to which they relate, the time or times at which they shall be made, and such
other terms and conditions as the Committee shall deem appropriate.

                                   ARTICLE III
                                  MISCELLANEOUS

3.1   Amendment of the Plan; Modification of Awards

            (a) The Board may from time to time suspend, discontinue, revise or
amend the Plan in any respect whatsoever, except that no such amendment shall
materially impair any rights or materially increase any obligations of the
Grantee under any Award theretofore made under the Plan without the consent of
the Grantee (or, after the Grantee's death, the person having the right to
exercise or receive payment of the Award). For purposes of the Plan, any action
of the Board or the Committee that alters or affects the tax treatment of any
Award shall not be considered to materially impair any rights of any Grantee,
provided, however, the Board may not modify the Option Exercise Price as set
forth in Section 2.3(d) or the exercise price of a stock appreciation right as
set forth in Section 2.3(c) whether through amendment, cancellation, replacement
grants or any other means (except by virtue of an adjustment pursuant to Section
1.6(c)).

            (b) Shareholder approval of any amendment shall be obtained to the
extent necessary to comply with Section 422 of the Code (relating to Incentive
Stock Options) or any other applicable law or regulation.

            (c) The Committee may amend any outstanding Award Agreement,
including, without limitation, by amendment which would accelerate the time or
times at which the Award becomes unrestricted or may be exercised, or waive or
amend any goals, restrictions or conditions set forth in the Award Agreement.
However, any such amendment (other than an amendment pursuant to paragraph (a)
of this Section 3.1 or an assumption pursuant to Section 3.7(b)) that materially
impairs the rights or materially increases the obligations of a Grantee under an
outstanding Award shall be made only with the consent of the Grantee (or, upon
the Grantee's death, the person having the right to exercise the Award).

3.2   Tax Withholding

            (a) As a condition to the receipt of any shares of Common Stock
pursuant to any Award or the lifting of restrictions on any Award, or in
connection with any other event that gives rise to a federal or other
governmental tax withholding obligation on the part of the Company relating to
an Award (including, without limitation, FICA tax), the Company shall be
entitled to require that the Grantee remit to the Company an amount sufficient
in the opinion of the Company to satisfy such withholding obligation.

            (b) If the event giving rise to the withholding obligation is a
transfer of shares of Common Stock, then, to the extent specified in the
applicable Award Agreement and unless otherwise permitted by the Committee, the
Grantee may satisfy only the minimum statutory withholding obligation imposed
under paragraph (a) by electing to have the Company withhold shares of Common
Stock having a Fair Market Value equal to the amount of tax to be withheld. For
this purpose, Fair Market Value shall be

                                       8
<PAGE>
determined as of the date on which the amount of tax to be withheld is
determined (and any fractional share amount shall be settled in cash).

3.3   Restrictions

            (a) If the Committee shall at any time determine that any consent
(as hereinafter defined) is necessary or desirable as a condition of, or in
connection with, the granting of any Award, the issuance or purchase of shares
of Common Stock or other rights thereunder, or the taking of any other action
thereunder (a "Plan Action"), then no such Plan Action shall be taken, in whole
or in part, unless and until such consent shall have been effected or obtained
to the full satisfaction of the Committee.

            (b) The term "consent" as used herein with respect to any action
referred to in paragraph (a) means (i) any and all listings, registrations or
qualifications in respect thereof upon any securities exchange or under any
federal, state or local law, rule or regulation, (ii) any and all written
agreements and representations by the Grantee with respect to the disposition of
shares, or with respect to any other matter, which the Committee shall deem
necessary or desirable to comply with the terms of any such listing,
registration or qualification or to obtain an exemption from the requirement
that any such listing, qualification or registration be made, (iii) any and all
consents, clearances and approvals in respect of a Plan Action by any
governmental or other regulatory bodies, and (iv) any and all consents or
authorizations required to comply with, or required to be obtained under,
applicable local law or otherwise required by the Committee. Nothing herein
shall require the Company to list, register or qualify the shares of Common
Stock on any securities exchange.

3.4   Nonassignability

            Except to the extent otherwise provided in the applicable Award
Agreement, no Award or right granted to any person under the Plan shall be
assignable or transferable other than by will or by the laws of descent and
distribution, and all such Awards and rights shall be exercisable during the
life of the Grantee only by the Grantee or the Grantee's legal representative.
Notwithstanding the immediately preceding sentence, the Committee may permit a
Grantee to transfer any stock option which is not an Incentive Stock Option to
one or more of the Grantee's immediate family members or to trusts established
in whole or in part for the benefit of the Grantee and/or one or more of such
immediate family members. For purposes of the Plan, (i) the term "immediate
family" shall mean the Grantee's spouse and issue (including adopted and step
children) and (ii) the phrase "immediate family members or to trusts established
in whole or in part for the benefit of the Grantee and/or one or more of such
immediate family members" shall be further limited, if necessary, so that
neither the transfer of a nonqualified stock option to such immediate family
member or trust, nor the ability of a Grantee to make such a transfer shall have
adverse consequences to the Company or the Grantee by reason of Section 162(m)
of the Code.

3.5   Requirement of Notification of Election Under Section 83(b) of the Code

            If a Grantee, in connection with the acquisition of shares of Common
Stock under the Plan, is permitted to make the election permitted under Section
83(b) of the Code (i.e., an election to include in gross income in the year of
transfer the amounts specified in Section 83(b) of the Code notwithstanding the
continuing transfer restrictions) and the Grantee makes such an election, the
Grantee shall notify the Company of such election within ten (10) days of filing
notice of the election with the Internal Revenue Service, in addition to any
filing and notification required pursuant to regulations issued under Section
83(b) of the Code.

3.6   Requirement of Notification Upon Disqualifying Disposition Under Section
      421(b) of the Code

            If any Grantee shall make any disposition of shares of Common Stock
issued pursuant to the exercise of an Incentive Stock Option under the
circumstances described in Section 421(b) of the Code (relating to certain
disqualifying dispositions), such Grantee shall notify the Company of such
disposition

                                       9
<PAGE>
within ten (10) days thereof.

3.7   Change in Control

            (a) A "Change in Control" means the occurrence of any one of the
      following events:

            (i) any person is or becomes a "beneficial owner" (as defined in
      Rule 13d-3 under the Exchange Act), directly or indirectly, of securities
      of the Company representing more than 30% of the total voting power of the
      Company's then outstanding securities generally eligible to vote for the
      election of directors (the "Company Voting Securities); provided, however,
      that any of the following acquisitions shall not be deemed to be a Change
      in Control: (1) by the Company or any subsidiary or affiliate, (2) by any
      employee benefit plan (or related trust) sponsored or maintained by the
      Company or any subsidiary or affiliate, (3) by any underwriter temporarily
      holding securities pursuant to an offering of such securities, or (4)
      pursuant to a Non-Qualifying Transaction (as defined in paragraph (ii));

            (ii) the consummation of a merger, consolidation, statutory share
      exchange or similar form of corporate transaction involving the Company or
      any of its subsidiaries or affiliates that requires the approval of the
      Company's stockholders whether for such transaction or the issuance of
      securities in the transaction (a "Business Combination"), unless
      immediately following such Business Combination: (A) more than 80% of the
      total voting power of (x) the corporation resulting from such Business
      Combination (the "Surviving Corporation"), or (y) if applicable, the
      ultimate parent corporation that directly or indirectly has beneficial
      ownership of 95% of the voting securities eligible to elect directors of
      the Surviving Corporation (the "Parent Corporation"), is represented by
      Company Voting Securities that were outstanding immediately prior to such
      Business Combination (or, if applicable, is represented by shares into
      which such Company Voting Securities were converted pursuant to such
      Business Combination), and such voting power among the holders thereof is
      in substantially the same proportion as the voting power of such Company
      Voting Securities among the holders thereof immediately prior to the
      Business Combination and (B) no person (other than any employee benefit
      plan (or any related trust) sponsored or maintained by the Surviving
      Corporation or the Parent Corporation), is or becomes the beneficial
      owner, directly or indirectly, of securities of the Parent Corporation
      (or, if there is no Parent Corporation, the Surviving Corporation)
      representing 30% of the total voting power of the securities then
      outstanding generally eligible to vote for the election of directors of
      the Surviving Corporation (any Business Combination which satisfies all of
      the criteria specified in (A) and (B) above shall be deemed to be a
      "Non-Qualifying Transaction");

            (iii) individuals who, on January 1, 2002, constitute the Board (the
      "Incumbent Directors") cease for any reason to constitute at least
      two-thirds of the Board, provided that any person becoming a director
      subsequent to January 1, 2002, whose election or nomination for election
      was approved by a vote of a majority of the Incumbent Directors then on
      the Board (either by a specific vote or by approval of the proxy statement
      of the Company in which such person is named as a nominee for director,
      without written objection to such nomination) shall be an Incumbent
      Director; provided, however, that no individual initially elected or
      nominated as a director of the Company as a result of an actual or
      threatened election contest with respect to directors or as a result of
      any other actual or threatened solicitation of proxies or consents by or
      on behalf of any person other than the Board shall be deemed to be an
      Incumbent Director;

            (iv) the stockholders of the Company approve a plan of complete
      liquidation or dissolution of the Company; or,

            (v) the consummation of a sale of all or substantially all of the
      Company's assets to an entity that is not an affiliate of the Company
      other than pursuant to a Non-Qualifying Transaction.

                                       10
<PAGE>
Notwithstanding the foregoing, a Change in Control of the Company shall not be
deemed to occur solely because any person acquires beneficial ownership of more
than 30%] of Company Voting Securities as a result of the acquisition of Company
Voting Securities by the Company which reduces the number of Company Voting
Securities outstanding; provided, that if after such acquisition by the Company
such person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control of the Company shall then
occur.

            (b) The following shall occur if Awards "Fully Vest": (i) any stock
options and stock appreciation rights granted under the Plan shall become fully
vested and immediately exercisable, (ii) any restricted stock, restricted stock
units and other stock-based Awards granted under the Plan will become fully
vested, any restrictions applicable to such Awards shall lapse and all other
Awards denominated in stock will be immediately paid out, and (iii) any
performance goals applicable to Awards will be deemed to be fully satisfied.

            (c) In the event of a Non-Qualifying Transaction, outstanding Awards
shall be assumed (or an equivalent award shall be substituted) by such Surviving
Corporation or Parent Corporation. In the absence of an assumption (or
substitution) of Awards, the Awards shall Fully Vest unless the Committee
determines in its sole discretion that this Section 3.7(c) shall not apply, in
which case, the Committee shall proceed in accordance with Section 3.7(d)(i)
below.

            (d) Upon the occurrence of any Change in Control or upon the
occurrence of a Non-Qualifying Transaction where Awards cannot be assumed (or
substituted) by the Surviving Corporation or Parent Corporation, the Committee
may, in its sole discretion, (i) provide that stock options and stock
appreciation rights granted under the Plan will be cancelled and terminate and
that the holder of each stock option and each stock appreciation right not
granted in connection with an option then outstanding shall receive for each
share of Common Stock subject to the option or stock appreciation right a cash
payment (or the delivery of shares of stock or other securities valued on the
date of the Change in Control, or a combination of cash and securities) from the
Company to the Grantee equal to the difference between the Fair Market Value of
one share of Common Stock on the date of the Change in Control (or
Non-Qualifying Transaction) and the per share exercise price of such option or
stock appreciation right multiplied by the number of shares of Common Stock
subject to such Award, or (ii) provide that the period to exercise stock options
or stock appreciation rights granted under the Plan shall be extended (but not
beyond the expiration of such option or stock appreciation right).

            (e) For the purposes of this Section 3.7, a stock option or stock
appreciation right shall be considered "assumed or substituted" if in the
reasonable determination of the Committee (i) the aggregate intrinsic value (the
difference between the fair market value and the exercise price per share of
Common Stock multiplied by the number of shares of Common Stock subject to such
Award) of the assumed (or substituted) award immediately after the Change in
Control is substantially the same as the aggregate intrinsic value of such Award
immediately before such transaction and (ii) the ratio of the exercise price per
assumed (or substituted) award to the fair market value per share of successor
corporation stock immediately after the Change in Control is substantially the
same as such ratio for the Award immediately before such transaction.

            (f) Upon the occurrence of a Change in Control specified in
paragraph (a)(i), or (iii) above and immediately prior to the occurrence of a
Change in Control specified in paragraph (a)(ii) or (v) Awards shall Fully Vest.

            (g) Upon the occurrence of a Change in Control specified in
paragraph (a)(iv) above, all outstanding Awards will terminate on consummation
of the liquidation or dissolution of the Company. The Committee may, in the
exercise of its sole discretion in such instances, (i) provide that Awards shall
Fully Vest and/or (ii) declare that any Award shall terminate as of any
specified date, provided, however, such date shall be no later than the date of
liquidation or dissolution.

                                       11
<PAGE>
3.8   Sale of Subsidiary

            Unless the Committee determines at any time in its sole discretion
that this Section 3.8 shall not apply, in the event the Company sells or spins
off a portion of its assets or one of its Related Entities and a Grantee is
determined to have a Termination of Employment as a result of such sale or
spin-off, then the Grantee shall (i) receive an additional one (1) year of
vesting in all Grantee's Awards and (ii) be permitted to exercise Grantee's
outstanding stock options and stock appreciation rights until the earlier of one
(1) year after such Termination of Employment or the expiration of the Award.

3.9   No Right to Continued Employment

            Nothing in the Plan or in any Award Agreement shall confer upon any
Grantee the right to continue in the employ of the Company or any Related Entity
nor affect any right which the Company or Related Entity may have to terminate
such employment at any time (with or without cause).

3.10  Nature of Payments

            Any and all grants of Awards and issuances of shares of Common Stock
under the Plan shall constitute a special incentive payment to the Grantee and
shall not be taken into account in computing the amount of salary or
compensation of the Grantee for the purpose of determining any benefits under
any pension, retirement, profit-sharing, bonus, life insurance or other benefit
plan of the Company or under any agreement with the Grantee, unless such plan or
agreement specifically provides otherwise.

3.11  Non-Uniform Determinations

            The Committee's determinations under the Plan need not be uniform
and may be made by it selectively among persons who receive, or are eligible to
receive, Awards (whether or not such persons are similarly situated). Without
limiting the generality of the foregoing, the Committee shall be entitled, among
other things, to make non-uniform and selective determinations, and to enter
into non-uniform and selective Award Agreements, as to the persons to receive
Awards under the Plan, and the terms and provisions of Awards under the Plan.

3.12  Other Payments or Awards

            Nothing contained in the Plan shall be deemed in any way to limit or
restrict the Company from making any Award or payment to any person under any
other plan, arrangement or understanding, whether now existing or hereafter in
effect.

3.13  Section Headings

            The section headings contained herein are for the purpose of
convenience only and are not intended to define or limit the contents of the
sections.

3.14  Effective Date and Term of Plan

            (a) The Plan shall become effective upon its approval by the
Company's shareholders.

            (b) Unless sooner terminated by the Board, the provisions of the
Plan respecting the grant of Incentive Stock Options shall terminate the day
before the tenth anniversary of the adoption of the Plan by the Board. All
Awards made under the Plan prior to its termination shall remain in effect until
such Awards have been satisfied or terminated in accordance with the terms and
provisions of the Plan and the applicable Award Agreements.

                                       12
<PAGE>
3.15  Governing Law

            All rights and obligations under the Plan shall be construed and
interpreted in accordance with the laws of the State of Delaware, without giving
effect to principles of conflict of laws.

3.16  Severability; Entire Agreement

            If any of the provisions of this Plan or any Award Agreement is
finally held to be invalid, illegal or unenforceable (whether in whole or in
part), such provision shall be deemed modified to the extent, but only to the
extent, of such invalidity, illegality or unenforceability and the remaining
provisions shall not be affected thereby; provided, that if any of such
provisions is finally held to be invalid, illegal, or unenforceable because it
exceeds the maximum scope determined to be acceptable to permit such provision
to be enforceable, such provision shall be deemed to be modified to the minimum
extent necessary to modify such scope in order to make such provision
enforceable. The Plan and any Award Agreements contain the entire agreement of
the parties with respect to the subject matter thereof and supersede all prior
agreements, promises, covenants, arrangements, communications, representations
and warranties between them, whether written or oral with respect to the subject
matter thereof.

3.17  No Third Party Beneficiaries

            Except as expressly provided therein, neither the Plan nor any Award
Agreement shall confer on any person other than the Company and the grantee of
any Award any rights or remedies thereunder.

3.18  Successors and Assigns

            The terms of this Plan shall be binding upon and inure to the
benefit of the Company and its successors and assigns.

                                       13

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