Document:

Intellectual Property Security Agreement

 Exhibit 10.3 
 Execution Version 
 INTELLECTUAL PROPERTY SECURITY AGREEMENT

 This INTELLECTUAL PROPERTY SECURITY AGREEMENT, dated as of May 19, 2011 (as amended, supplemented or otherwise
modified from time to time, the “Intellectual Property Security Agreement”), is made by each of the signatories hereto (collectively, the “Grantors”) in favor of JPMorgan Chase Bank, N.A., as administrative agent
(in such capacity, the “Administrative Agent”) for the Secured Parties (as defined in the Credit Agreement referred to below). 
 A. KAR Auction Services, Inc., a Delaware corporation (the “Borrower”), has entered into the Credit Agreement, dated as of even date herewith (as amended, supplemented, or otherwise
modified from time to time, the “Credit Agreement”), with the several banks and other financial institutions or entities from time to time party thereto as lenders (the “Lenders”), J.P. Morgan Securities LLC as sole
lead arranger, J.P. Morgan Securities LLC, Goldman Sachs Lending Partners LLC, Barclays Capital and Deutsche Bank Securities Inc., as joint bookrunners, Goldman Sachs lending Partners LLC as syndication agent, Barclays Bank PLC and Deutsche Bank
Securities Inc. as co-documentation agents, the Administrative Agent and other parties from time to time signatory thereto. 

B. It is a condition precedent to the obligation of the Lenders to make their respective extensions of credit to the Borrower under the
Credit Agreement that the Grantors shall have executed and delivered that certain Guarantee and Collateral Agreement, dated as of even date herewith in favor of the Administrative Agent (as amended, supplemented, replaced or otherwise modified from
time to time, the “Guarantee and Collateral Agreement”). Capitalized terms used and not defined herein have the meanings given such terms in the Credit Agreement or the Guarantee and Collateral Agreement, as applicable. 

C. Under the terms of the Guarantee and Collateral Agreement, the Grantors have granted a security interest in certain Property,
including without limitation certain Intellectual Property of the Grantors to the Administrative Agent, for the benefit of the Secured Parties, and have agreed as a condition thereof to execute this Intellectual Property Security Agreement for
recording with the United States Patent and Trademark Office, the United States Copyright Office, and other applicable Governmental Authorities. 
 NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the Grantors agree as follows: 

SECTION 1. Grant of Security. Each Grantor hereby grants to the Administrative Agent, for the benefit of the Secured Parties, a
security interest in all of such Grantor’s right, title and interest in and to all of the following property now owned or at any time hereafter acquired by such Grantor or in which such Grantor now has or at any time in the future may acquire
any right, title or interest, as collateral security for the prompt and complete payment and performance when due (whether at the stated maturity, by acceleration or otherwise) of such Grantor’s Obligations (as defined in the Guarantee and
Collateral Agreement): 
 (a) (i) all United States trademarks, service marks, trade names, domain names, corporate names,
company names, business names, trade dress, trade styles or logos and all registrations of and applications to register the foregoing (except for any applications filed in the United States Patent and Trademark Office on the basis of such
Grantor’s “intent-to-use” such trademark, unless and until acceptable evidence of use of the trademark has been filed with the United States Patent and Trademark Office pursuant to Section 1(c) or Section 1(d) of the Lanham
Act (15 U.S.C. 1051, et seq.), to the extent, if any, that, and during the period, if any, in which granting a lien in such trademark application prior to such filing would adversely affect the enforceability or validity of such trademark
application or of any 

 
registration that issues therefrom) and any new renewals thereof, including each registration and application identified in Schedule 1, (ii) the right to sue or otherwise recover for any and
all past, present and future infringements, misappropriations, dilutions and other violations thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including payments under
all licenses entered into in connection therewith, and damages and payments for past, present or future infringements and dilutions thereof) and (iv) all other rights of any kind whatsoever accruing thereunder or pertaining thereto, together in
each case with the goodwill of the business connected with the use of, and symbolized by, each of the above; 
 (b) (i) all
United States patents, patent applications, including, without limitation, each issued patent and patent application identified on Schedule 1, (ii) all inventions and improvements described and claimed therein, (iii) the right to sue or
otherwise recover for any and all past, present and future infringements and other violations thereof, (iv) all income, royalties, damages and other payments now and hereafter due and/or payable with respect thereto (including payments under
all licenses entered into in connection therewith, and damages and payments for past, present or future infringements thereof) and (v) all reissues, divisions, continuations, continuations-in-part, substitutes, renewals, and extensions thereof,
all improvements thereon and all other rights of any kind whatsoever accruing thereunder or pertaining thereto; 
 (c) (i) all
United States copyrights, whether or not the underlying works of authorship have been published, and all copyright registrations and copyright applications, and any renewals or extensions thereof, including each registration identified on Schedule
1, (ii) the right to sue or otherwise recover for any and all past, present and future infringements and other violations thereof, (iii) all income, royalties, damages and other payments now and hereafter due and/or payable with respect
thereto (including, without limitation, payments under all licenses entered into in connection therewith, and damages and payments for past, present or future infringements thereof) and (iv) all other rights of any kind whatsoever accruing
thereunder or pertaining thereto; and 
 (d) any and all Proceeds of the foregoing. 

SECTION 2. Recordation. Each Grantor authorizes and requests that the United States Register of Copyrights or the United States
Commissioner of Patents and Trademarks, as applicable, record this Intellectual Property Security Agreement. 
 SECTION 3.
Execution in Counterparts. This Agreement may be executed by one or more of the parties to this Agreement on any number of separate counterparts (including by telecopy or electronic transmission), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument. 
 SECTION 4. Governing Law. This Intellectual Property
Security Agreement shall be governed by, and construed and interpreted in accordance with, the law of the State of New York. 

SECTION 5. Conflict Provision. This Intellectual Property Security Agreement has been entered into in conjunction with the
provisions of the Guarantee and Collateral Agreement and the Credit Agreement. The rights and remedies of each party hereto with respect to the security interest granted herein are without prejudice to, and are in addition to those set forth in the
Guarantee and Collateral Agreement and the Credit Agreement, all terms and provisions of which are incorporated herein by reference. In the event that any provisions of this Intellectual Property Security Agreement are in conflict with the Guarantee
and Collateral Agreement or the Credit Agreement, the provisions of the Guarantee and Collateral Agreement or the Credit Agreement shall govern. 

  

					
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	 	2	  

 IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written. 
  

					
	KAR AUCTION SERVICES, INC.
		
	By:	 	/s/ Eric M. Loughmiller
		 	Name:	 	Eric M. Loughmiller
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

							
	 STATE OF INDIANA
	  	 	)	  	  	
		  	 	:	  	  	  ss.:
	 COUNTY OF HAMILTON
	  	 	)	  	  	

 On this 19 day of May, 2011, before me personally appeared Eric M. Loughmiller, proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted executed the instrument. 
  

			
	/s/ Marilyn A. Pierce
	Notary Public
		
		 	My commission expires: 10/29/17

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	

 IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written. 
  

					
	ADESA, INC.
		
	By:	 	/s/ Eric M. Loughmiller
		 	Name:	 	Eric M. Loughmiller
		 	Title:	 	Executive Vice President and Chief Financial Officer

  

							
	 STATE OF INDIANA
	  	 	)	  	  	
		  	 	:	  	  	ss.:
	 COUNTY OF HAMILTON
	  	 	)	  	  	

 On this 19 day of May, 2011, before me personally appeared Eric M. Loughmiller, proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted executed the instrument. 
  

			
	/s/ Marilyn A. Pierce
	Notary Public
		
		 	My commission expires: 10/29/17

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	4

 IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written. 
  

					
	AUTOMOTIVE FINANCE CORPORATION
		
	By:	 	/s/ Eric M. Loughmiller
		 	Name:	 	Eric M. Loughmiller
		 	Title:	 	Executive Vice President

  

							
	 STATE OF INDIANA
	  	 	)	  	  	
		  	 	:	  	  	ss.:
	 COUNTY OF HAMILTON
	  	 	)	  	  	

 On this 19 day of May, 2011, before me personally appeared Eric M. Loughmiller, proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted executed the instrument. 
  

			
	/s/ Marilyn A. Pierce
	Notary Public
		
		 	My commission expires: 10/29/17

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	

 IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written. 
  

					
	AUTOMOTIVE FINANCE CONSUMER DIVISION, LLC
		
	By:	 	/s/ Eric M. Loughmiller
		 	Name:	 	Eric M. Loughmiller
		 	Title:	 	Executive Vice President

  

							
	 STATE OF INDIANA
	  	 	)	  	  	
		  	 	:	  	  	ss.:
	 COUNTY OF HAMILTON
	  	 	)	  	  	

 On this 19 day of May, 2011, before me personally appeared Eric M. Loughmiller, proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted executed the instrument. 
  

			
	/s/ Marilyn A. Pierce
	Notary Public
		
		 	My commission expires: 10/29/17

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	

 IN WITNESS WHEREOF, each of the undersigned has caused this Intellectual Property Security
Agreement to be duly executed and delivered as of the date first above written. 
  

					
	INSURANCE AUTO AUCTIONS, INC.
		
	By:	 	/s/ Eric M. Loughmiller
		 	Name:	 	Eric M. Loughmiller
		 	Title:	 	Authorized Signatory Officer

  

							
	 STATE OF INDIANA
	  	 	)	  	  	
		  	 	:	  	  	ss.:
	 COUNTY OF HAMILTON
	  	 	)	  	  	

 On this 19 day of May, 2011, before me personally appeared Eric M. Loughmiller, proved to me on the basis
of satisfactory evidence to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the entity upon behalf
of which the person acted executed the instrument. 
  

			
	/s/ Marilyn A. Pierce
	Notary Public
	
	My commission expires: 10/29/17

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENT	  	

 
					
	JPMorgan Chase Bank, N.A.,
as Administrative Agent
		
	By:	 	/s/ Randall K. Stephens 
		 	Name:	 	Randall K Stephens
		 	Title:	 	Vice President

  

			
	INTELLECTUAL PROPERTY SECURITY AGREEMENTFourth Amended and Restated Receivables Purchase Agreement

 Portions of this Exhibit 10.20 have been omitted based upon a request for confidential treatment. This
Exhibit 10.20, including the non-public information, has been filed separately with the Securities and Exchange Commission. “[*]” designates portions of this document that have been redacted pursuant to the request for confidential
treatment filed with the Securities and Exchange Commission. 
 EXHIBIT 10.20 

FOURTH AMENDED AND RESTATED 
 RECEIVABLES PURCHASE AGREEMENT 
 dated as of April 26, 2011 

among  

AFC FUNDING CORPORATION, 
 as Seller,  
 AUTOMOTIVE FINANCE CORPORATION, 

as Servicer,  
 FAIRWAY FINANCE COMPANY, LLC, 
 MONTEREY FUNDING LLC, 

SALISBURY RECEIVABLES COMPANY LLC, 
 and such other entities from time to time 
 as may become Purchasers hereunder 

 DEUTSCHE BANK AG, NEW YORK BRANCH, 
 as Purchaser Agent for Monterey Funding LLC, 
 BARCLAYS BANK PLC,

 as Purchaser Agent for Salisbury Receivables Company LLC 

and 
 BMO
CAPITAL MARKETS CORP., 
 as the initial Agent 
 and as Purchaser Agent for Fairway Finance Company, LLC 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	Page	 
		
	 ARTICLE I.            AMOUNTS AND TERMS OF THE
PURCHASES
	  	 	2	  
				
		 	Section 1.1.	    	 Purchase Facility
	  	 	2	  
				
		 	Section 1.2.	    	 Making Purchases
	  	 	2	  
				
		 	Section 1.3.	    	 Participation Computation
	  	 	3	  
				
		 	Section 1.4.	    	 Settlement Procedures
	  	 	3	  
				
		 	Section 1.5.	    	 Fees
	  	 	7	  
				
		 	Section 1.6.	    	 Payments and Computations, Etc
	  	 	7	  
				
		 	Section 1.7.	    	 Dividing or Combining Portions of the Investment of any Participation
	  	 	8	  
				
		 	Section 1.8.	    	 Increased Costs
	  	 	8	  
				
		 	Section 1.9.	    	 Dilutions; Application of Payments
	  	 	9	  
				
		 	Section 1.10.	    	 Requirements of Law
	  	 	10	  
				
		 	Section 1.11.	    	 Inability to Determine Eurodollar Rate
	  	 	10	  
				
		 	Section 1.12.	    	 Additional and Replacement Purchasers, Increase in Maximum Amount
	  	 	11	  
				
		 	Section 1.13.	    	 Special Allocation Provisions for Non-Revolving Purchasers
	  	 	12	  
		
	ARTICLE II.            REPRESENTATIONS AND WARRANTIES; COVENANTS; TERMINATION EVENTS	  	 	12	  
				
		 	Section 2.1.	    	 Representations and Warranties; Covenants
	  	 	12	  
				
		 	Section 2.2.	    	 Termination Events
	  	 	12	  
		
	ARTICLE III.            INDEMNIFICATION	  	 	13	  
				
		 	Section 3.1.	    	 Indemnities by the Seller
	  	 	13	  
				
		 	Section 3.2.	    	 Indemnities by AFC
	  	 	15	  
				
		 	Section 3.3.	    	 Indemnities by Successor Servicer
	  	 	16	  
		
	ARTICLE IV.            ADMINISTRATION AND COLLECTIONS	  	 	17	  
				
		 	Section 4.1.	    	 Appointment of Servicer
	  	 	17	  
				
		 	Section 4.2.	    	 Duties of Servicer; Relationship to Backup Servicing Agreement
	  	 	18	  
				
		 	Section 4.3.	    	 Deposit Accounts; Establishment and Use of Certain Accounts
	  	 	20	  
				
		 	Section 4.4.	    	 Enforcement Rights
	  	 	21	  
				
		 	Section 4.5.	    	 Responsibilities of the Seller
	  	 	22	  

  
 -i-

 TABLE OF CONTENTS 

(continued) 
  

									
	 	 	 	  	Page	 
				
		 	Section 4.6.	    	Servicing Fee	  	 	22	  
				
		 	Section 4.7.	    	Specified Ineligible Receivables	  	 	22	  
		
	ARTICLE V.            THE AGENTS	  	 	23	  
				
		 	Section 5.1.	    	Appointment and Authorization	  	 	23	  
				
		 	Section 5.2.	    	Delegation of Duties	  	 	24	  
				
		 	Section 5.3.	    	Exculpatory Provisions	  	 	24	  
				
		 	Section 5.4.	    	Reliance by Agents	  	 	24	  
				
		 	Section 5.5.	    	Notice of Termination Date	  	 	25	  
				
		 	Section 5.6.	    	Non-Reliance on Agent, Purchaser Agents and Other Purchasers	  	 	26	  
				
		 	Section 5.7.	    	Agent, Purchaser Agents and Purchasers	  	 	26	  
				
		 	Section 5.8.	    	Indemnification	  	 	26	  
				
		 	Section 5.9.	    	Successor Agent	  	 	26	  
		
	ARTICLE VI.            MISCELLANEOUS	  	 	27	  
				
		 	Section 6.1.	    	Amendments, Etc	  	 	27	  
				
		 	Section 6.2.	    	Notices, Etc	  	 	27	  
				
		 	Section 6.3.	    	Assignability	  	 	28	  
				
		 	Section 6.4.	    	Costs, Expenses and Taxes	  	 	29	  
				
		 	Section 6.5.	    	No Proceedings; Limitation on Payments	  	 	29	  
				
		 	Section 6.6.	    	Confidentiality	  	 	30	  
				
		 	Section 6.7.	    	GOVERNING LAW AND JURISDICTION	  	 	30	  
				
		 	Section 6.8.	    	Execution in Counterparts	  	 	31	  
				
		 	Section 6.9.	    	Survival of Termination	  	 	31	  
				
		 	Section 6.10.	    	WAIVER OF JURY TRIAL	  	 	31	  
				
		 	Section 6.11.	    	Entire Agreement	  	 	31	  
				
		 	Section 6.12.	    	Headings	  	 	31	  
				
		 	Section 6.13.	    	Liabilities of the Purchasers	  	 	31	  
				
		 	Section 6.14.	    	Tax Treatment	  	 	32	  

  
 -ii-

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	EXHIBIT I	  	 DEFINITIONS
	  	 	I-1	  
	EXHIBIT II	  	 CONDITIONS OF PURCHASES
	  	 	II-1	  
	EXHIBIT III	  	 REPRESENTATIONS AND WARRANTIES
	  	 	III-1	  
	EXHIBIT IV	  	 COVENANTS
	  	 	IV-1	  
	EXHIBIT V	  	 TERMINATION EVENTS
	  	 	V-1	  
	EXHIBIT VI	  	 PORTFOLIO CERTIFICATE
	  	 	VI-1	  
	EXHIBIT VII	  	 PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
	  	 	VII-1	  
			
	 SCHEDULE I
	  	 CREDIT AND COLLECTION POLICY
	  	 	I-1	  
	SCHEDULE II	  	 DEPOSIT BANKS AND DEPOSIT ACCOUNTS
	  	 	II-1	  
	SCHEDULE III	  	 NET RECEIVABLES POOL BALANCE CALCULATION
	  	 	III-1	  
	SCHEDULE IV	  	 ELIGIBLE CONTRACTS
	  	 	IV-1	  
	SCHEDULE V	  	 TAX MATTERS
	  	 	V-1	  
	SCHEDULE VI	  	 COMPETITOR FINANCIAL INSTITUTIONS
	  	 	VI-1	  
			
	 ANNEX A
	  	 FORM OF PURCHASE NOTICE
	  			
	ANNEX B	  	 FORM OF SERVICER REPORT
	  			
	ANNEX C	  	 FORMS OF JOINDER AGREEMENTS
	  			

  
 -iii-

 FOURTH AMENDED AND RESTATED 

RECEIVABLES PURCHASE AGREEMENT 
 This FOURTH AMENDED AND RESTATED RECEIVABLES PURCHASE AGREEMENT, originally dated as of December 31, 1996, amended and restated as of May 31, 2002, as of June 15, 2004, as of April 20,
2007 and as of April 26, 2011 (as further amended, supplemented or otherwise modified from time to time, the “Agreement”) is entered into among AFC FUNDING CORPORATION, an Indiana corporation, as seller (the
“Seller”), AUTOMOTIVE FINANCE CORPORATION, an Indiana corporation (“AFC”), as initial servicer (in such capacity, together with its successors and permitted assigns in such capacity, the
“Servicer”), FAIRWAY FINANCE COMPANY, LLC, a Delaware limited liability company (“Fairway”), MONTEREY FUNDING LLC, a Delaware limited liability company (“Monterey”) and SALISBURY RECEIVABLES COMPANY
LLC (“Salisbury”) as initial purchasers (together with their successors and permitted assigns and such other entities as may become party hereto from time to time as purchasers, the “Purchasers”), DEUTSCHE BANK AG,
NEW YORK BRANCH (“DB”), as Purchaser Agent for Monterey (in such capacity, together with its successors and assigns and such other financial institutions as may become party hereto from time to time each as a purchaser agent, a
“Purchaser Agent”) BARCLAYS BANK PLC, as Purchaser Agent for Salisbury (in such capacity, together with its successors and assigns and such other financial institutions as may become party hereto from time to time each as a
purchaser agent, a “Purchaser Agent”) and BMO CAPITAL MARKETS CORP., a Delaware corporation (“BMOCM”), as agent for the Purchasers (in such capacity, together with its successors and assigns in such capacity, the
“Agent”) and as Purchaser Agent for Fairway (in such capacity, together with its successors and assigns and such other financial institutions as may become party hereto from time to time each as a purchaser agent, a
“Purchaser Agent”). 
 PRELIMINARY STATEMENTS. Certain terms that are capitalized and used throughout this
Agreement are defined in Exhibit I to this Agreement. References in the Exhibits hereto to “the Agreement” refer to this Agreement, as amended, modified or supplemented from time to time. 

Fairway, Monterey, DB, the Agent, the Seller and the Servicer are party to that certain Third Amended and Restated Receivables Purchase
Agreement, dated as of April 20, 2007 (the “Prior Agreement”), pursuant to which the Seller has sold, transferred and assigned an undivided variable percentage interest in a pool of receivables to the Purchasers thereunder.

 The parties hereto wish to amend and restate the Prior Agreement in its entirety in order to make certain changes set forth
herein. 

 In consideration of the mutual agreements, provisions and covenants contained herein, the
parties hereto agree as follows: 
 ARTICLE I. 
 AMOUNTS AND TERMS OF THE PURCHASES 
 Section 1.1. Purchase Facility.
(a) On the terms and conditions hereinafter set forth, each Purchaser hereby agrees to purchase and make reinvestments of undivided percentage ownership interests with regard to its Participation from the Seller from time to time prior to the
Termination Date. Under no circumstances shall any Purchaser make any such purchase or reinvestment, if, after giving effect to such purchase or reinvestment, (A) the aggregate Investment of such Purchaser would exceed its Maximum Commitment;
or (B) the aggregate outstanding Investment of all Purchasers would exceed the Maximum Amount. 
 (b) The Seller may, upon
at least 30 days’ notice to the Agent, the Purchaser Agents, the Servicer and the Backup Servicer, terminate the purchase facility provided in Section 1.1(a) in whole or, from time to time, irrevocably reduce in part the unused
portion of the Maximum Amount; provided that each partial reduction shall be in the amount of at least $1,000,000, or an integral multiple of $500,000 in excess thereof and shall not reduce the Maximum Amount below $100,000,000. Any such
reductions shall be applied to the Maximum Commitments of the Purchasers on a pro rata basis (based on unused Maximum Commitments) or as otherwise consented to by the Agent. 
 (c) On April 27, 2011, Salisbury Receivables Company LLC shall make a Purchase hereunder in a principal amount sufficient to reallocate the Investments and Participations of all Purchasers hereunder
in accordance to their respective Pro Rata Shares (reflecting their then-current Maximum Commitments). The proceeds of such Purchase by Salisbury Receivables Company LLC shall be paid directly to the accounts specified by the other Purchasers.

 Section 1.2. Making Purchases. (a) Each purchase (but not reinvestment) of undivided ownership interests
with regard to any Participation of any Purchaser hereunder shall be made upon the Seller’s irrevocable written notice in the form of Annex A delivered to the Agent and each Purchaser Agent in accordance with Section 6.2
(which notice must be received by such Purchaser Agents prior to 2:00 p.m., Chicago time) on the Business Day immediately preceding the date of such proposed purchase. Each such notice of any such proposed purchase shall specify the desired amount
and date of such purchase and the desired duration of the initial Yield Period for the related Portion of the Investment of such Participation; provided each proposed purchase shall be in the amount of at least $1,000,000 or an integral
multiple of $100,000 in excess thereof. Each Purchaser Agent shall select the duration of such initial Yield Period with respect to the Portion of the Investment funded by the Purchaser(s) for which it is acting as Purchaser Agent and each
subsequent Yield Period in connection with such Portion of Investment in its discretion; provided that it shall use reasonable efforts, taking into account market conditions, to accommodate Seller’s preferences. 

(b) On the date of each purchase (but not reinvestment) of undivided ownership interests with regard to the Participation of any
Purchaser, such Purchaser shall, subject to Section 1.1(a) and the satisfaction of the applicable conditions set forth in Exhibit II hereto, make available to its Purchaser Agent (at its address set forth on the signature pages
hereto or of the applicable Joinder Agreement), in same day funds, an amount equal to its Pro Rata Share (subject to Section 1.13) of the amount of such purchase. Upon receipt of such funds, each such Purchaser Agent shall make such
funds immediately available to the Seller at such address. 

  
 2 

 (c) The Seller hereby sells and assigns to the Agent, for the benefit of the Purchasers, an
undivided percentage ownership interest equal to the Aggregate Participation in (i) each Pool Receivable then existing and thereafter arising, (ii) Seller’s right, title and interest in, to and under all Related Security with respect
to such Pool Receivables, and (iii) all Collections with respect to, and other proceeds of, such Pool Receivables and Related Security. 
 (d) To secure all of the Seller’s obligations (monetary or otherwise) under the Transaction Documents to which it is a party, whether now or hereafter existing or arising, due or to become due,
direct or indirect, absolute or contingent, including to secure the obligation of the Servicer to apply Collections as provided in this Agreement, the Seller hereby grants to the Agent, for the benefit of the Secured Parties, a security interest in
all of the Seller’s right, title and interest in, to and under all of the following, whether now or hereafter owned, existing or arising: (A) all Pool Receivables, (B) all Related Security with respect to each such Pool Receivable,
(C) all Collections with respect to such Pool Receivables and Related Security, (D) the Deposit Accounts, the Liquidation Account and the Cash Reserve Account and all certificates and instruments, if any, from time to time evidencing the
Deposit Accounts, the Liquidation Account and the Cash Reserve Account, all amounts on deposit therein, all investments (including any investment property) made with such funds, all claims thereunder or in connection therewith, and all interest,
dividends, moneys, instruments, securities and other property from time to time received, receivable or otherwise distributed in respect of or in exchange for any or all of the foregoing, (E) all rights of the Seller under the Purchase and Sale
Agreement, and (F) all proceeds of, and all amounts received or receivable under any or all of, the foregoing. The Agent, for the benefit of the Secured Parties, shall have, with respect to the property described in this
Section 1.2(d), and in addition to all the other rights and remedies available under this Agreement, all the rights and remedies of a secured party under any applicable UCC. 

Section 1.3. Participation Computation. Each Participation shall be automatically recomputed (or deemed to be recomputed) on
each Business Day other than a Termination Day. Each Participation shall remain constant as computed (or deemed recomputed) as of the day immediately preceding the Termination Date until such date that the aggregate Investment and Discount thereon
shall have been paid in full, all the amounts owed by the Seller hereunder and under any other Transaction Document to the Purchasers, the Purchaser Agents, the Agent, and any other Indemnified Party or Affected Person are paid in full and the
Servicer shall have received the accrued Servicing Fee. 
 Section 1.4. Settlement Procedures. (a) Collection
of the Pool Receivables shall be administered by the Servicer in accordance with the terms of this Agreement. The Seller shall provide to the Servicer on a timely basis all information needed for such administration, including notice of the
occurrence of any Termination Date or Paydown Day and current computations of the Participations. The Servicer shall segregate and hold all Collections in trust for the benefit of the Seller, the Purchasers and the other Secured Parties and, within
one Business Day of the receipt of Collections of Pool Receivables by the Seller or Servicer, deposit such Collections into a Deposit Account. On each day that is not a Termination Day, the 

  
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Servicer shall remit to the Liquidation Account from the Deposit Accounts (other than those amounts identified as “cash collateral” with respect to the Deposit Account held at [*]
(numbered [*])) an amount at least equal to the amount needed to make the payments set forth in clause (c) below. 

(b) Allocation of Seller’s Share of Collections Prior to Termination Date. If such day is not a Termination Day, the Servicer
shall allocate out of the Seller’s Share of Collections and pay or otherwise deposit into the Cash Reserve Account as set forth below the following amounts in the following order: 

(1) first, to the Servicer any accrued and unpaid Servicing Fees; 

(2) second, deposit into the Cash Reserve Account an amount up to the excess of the Cash Reserve over the amount on deposit in the
Cash Reserve Account; and 
 (3) third, to the Seller. 

(c) Daily Purchaser Share Allocation. On each Business Day that is not a Termination Day, the Servicer shall allocate from the
Purchasers’ Share of Collections and set aside in the Liquidation Account (unless otherwise specified below) the following amounts in the following order: 
 (1) first, to the Servicer and the Backup Servicer, the Unaffiliated Servicing Fees and Backup Servicing Fees and Transition Expenses accrued through such day and not previously set aside in the
Liquidation Account; 
 (2) second, to each Purchaser, any applicable Discount and Program Fees accrued through such day
and not previously set aside in the Liquidation Account; 
 (3) third, to the Cash Reserve Account, an amount, if any,
sufficient to increase the amount on deposit therein to equal the Cash Reserve; 
 (4) fourth, if a voluntary paydown of
Investment is being made, for application in reduction of the Investment in accordance with Section 1.4(f); 
 (5)
fifth, if the Aggregate Participation exceeds 100% or if such day is Paydown Day, for application in reduction of the Investment in accordance with Section 1.4(g); 

(6) sixth, to any Indemnified Party, ratably in proportion to the respective amounts owed to each such Person, any amounts owed to
such Indemnified Party; 
 (7) seventh, to the Backup Servicer, any accrued and unpaid Backup Servicing Fees, after giving
effect to the distribution in clause (1) above; 
 (8) eighth, to the Servicer, any accrued and unpaid Servicing
Fees, which in the Servicer’s discretion may be netted monthly from Collections, after giving effect to the distribution in clause (1) above; 

  
 4 

 (9) ninth, to the reinvestment in Pool Receivables and Related Security; and

 (10) tenth, to the Seller, but only to the extent no Paydown Day exists or would result from such distribution.

 (d) Distributions from Liquidation Account. Funds set aside and held on deposit in the Liquidation Account pursuant to
Section 1.4(c) above shall be distributed as follows: 
 (1) Distribution of Discount, Program
Fees and Investment Prior to Termination Date. On each Settlement Date that is not a Termination Day, amounts set aside in the Liquidation Account for a particular Purchaser with respect to Discount, Program Fees and Investment shall be paid to
the applicable Purchaser’s Account of such Purchaser on the applicable Yield Period End Date or Fee Payment Date for such amounts; 
 (2) Distributions of Indemnified Amounts. On each Settlement Date, Collections held on deposit in the Liquidation Account for the benefit of an Indemnified Party shall be paid to the applicable
Indemnified Party as directed by such Indemnified Party; 
 (3) Distributions of Servicing Fees. On each
Servicer Payment Date, Collections held on deposit in the Liquidation Account for the benefit of the Servicer shall be paid as the Servicer shall direct; and 
 (4) Distribution of Backup Servicing Fees and Transition Expenses. On each Backup Servicer Payment Date, Collections held on deposit in the Liquidation Account for the benefit of the Backup
Servicer shall be paid to the Backup Servicer as the Backup Servicer shall direct. 
 (e) Settlement Following Termination
Date. On each Draw Date on and after the Termination Date, all Collections (including the Seller’s Share) in the Deposit Accounts (other than those amounts identified as “cash collateral” with respect to the Deposit Account held
at [*] (numbered [*])) shall be transferred into the Liquidation Account and applied as follows: 
 (1) first, to the
Servicer (if not AFC or an Affiliate thereof) and the Backup Servicer (ratably in proportion to the respective amounts owed to each) the sum of accrued and unpaid Unaffiliated Servicing Fees and Backup Servicing Fees and Transition Expenses for the
prior calendar month; 
 (2) second, to the Agent an amount equal to any accrued and unpaid Enforcement Costs (provided
that the amount payable pursuant to this clause (2) shall not exceed $200,000 in the aggregate); 
 (3) third, pro
rata (based on amounts due) to each Purchaser’s Account an amount equal to all accrued and unpaid Discount and Program Fees; 
 (4) fourth, pro rata (based on Investment outstanding) to each Purchaser’s Account an amount equal to each Purchaser’s outstanding Investment; 

  
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 (5) fifth, to the Backup Servicer or any applicable successor Servicer, an amount
equal to the sum of the invoiced but unpaid Transition Expenses (if any) and any Backup Servicing Fees (if any) for the prior calendar month to the extent not paid pursuant to clause (1) above; 

(6) sixth, (i) first, to the Agent an amount equal to any accrued and unpaid Enforcement Costs to the extent not paid pursuant
to clause (2) above and (ii) second, to any Indemnified Party, ratably in proportion to the respective amounts owed to each such Person, any amounts owed to such Indemnified Party; 

(7) seventh, to the Servicer any accrued and unpaid Servicing Fees due to the Servicer; and 

(8) eighth, to the Seller. 
 (f) Voluntary Paydown of Investment. If at any time the Seller shall wish to cause the reduction of the aggregate of the Investment of the Participations of the Purchasers, the Seller shall give
each Purchaser Agent, the Agent, the Servicer and the Backup Servicer at least two Business Days’ prior written notice thereof (including the amount of such proposed reduction and the proposed date on which such reduction will commence).
Following the delivery of such notice, on the proposed date of commencement of such reduction and on each day thereafter, the Servicer shall cause the remainder of the Purchasers’ Share of Collections (after giving effect to allocations of more
senior priority items under Section 1.4(c) above) to be transferred to the Liquidation Account and the Agent shall hold therein such amounts for the benefit of the Purchasers until the aggregate amount thereof not so reinvested shall
equal the desired amount of reduction, at which time such amount shall be allocated to repay the outstanding Investment of the Purchasers ratably according to their respective Purchaser Percentages, with such reduction to be applied first to the
Investment of the Purchasers and then to the Investment of the Non-Revolving Purchasers (and otherwise subject to Section 1.13); provided, that upon the occurrence of the Termination Date, all such Collections set aside shall
instead be held for distribution in accordance with Section 1.4(e); and provided, further, that, 
 (1) unless otherwise agreed by the Agent, the amount of any such reduction with respect to each Purchaser shall be not less than $1,000,000 and shall be an integral multiple of $100,000, and the entire
Investment (if any) of the Participation after giving effect to such reduction shall be not less than $100,000,000, 
 (2) the Seller shall use reasonable efforts to choose a reduction amount, and the date of commencement thereof, so that to the extent practicable such reduction shall commence and conclude in the same
Yield Period, and 
 (3) if two or more Portions of Investment shall be outstanding with respect to any Purchaser
at the time of any proposed reduction, such proposed reduction shall be applied, unless the Seller shall otherwise specify in the notice described above, to the Portion of Investment of such Purchaser with the shortest remaining Yield Period.

 (g) Distributions of Investment Upon Paydown Day. On each Paydown Day (including on any day the Aggregate
Participation exceeds 100%), the remainder of the 

  
 6 

 
Purchasers’ Share of any remaining Collections (after giving effect to allocations of more senior priority items in Section 1.4(c)), shall be transferred by the Servicer from the
Deposit Accounts to the Liquidation Account and held therein by the Agent and allocated to repay the outstanding Investment of the Purchasers ratably according to their respective Purchaser Percentages (with such reduction to be applied first to the
Investment of the Purchasers and then to the Investment of the Non-Revolving Purchasers and otherwise subject to Section 1.13); provided, that on the first day that is not a Paydown Day or a Termination Day, the Agent shall hold
all funds allocated to repay Investment pursuant to this subsection for distribution in accordance with the priorities set forth in Section 1.4(c); and, provided, further, that upon the occurrence of the Termination
Date, all Collections allocated to repay Investment pursuant to this subsection shall instead be held for distribution in accordance with Section 1.4(e). 
 (h) Withdrawals from Cash Reserve Account. If on any Draw Date (A) insufficient funds are on deposit in the Liquidation Account to make in full all required distributions of Discount and fees
and (B) since the prior Draw Date funds have been released to the Seller and not used by the Seller to acquire Receivables, the Seller shall deposit into the Liquidation Account on or before such Draw Date the lesser of the amounts described in
clauses (A) and (B) above for the benefit of the applicable Purchasers. If on any Draw Date insufficient funds are on deposit in the Liquidation Account (after giving effect to any deposits made by the Seller as described in
the preceding sentence) to make in full all required distributions of Discount and fees for such Draw Date, the Agent shall distribute funds from the Cash Reserve Account in payment of such Discount and fees as if such funds were funds on deposit in
the Liquidation Account held for the benefit of the applicable Purchaser. On any Termination Day, to the extent directed by the Majority Purchasers, the Agent shall distribute funds from the Cash Reserve Account pursuant to
Section 1.4(e) as if such funds were funds on deposit in the Liquidation Account held for the benefit of the applicable Purchaser and, following the payment in full of all outstanding Investment, any remaining amounts on deposit in the
Cash Reserve Account shall be distributed as Collections pursuant to Section 1.4(e). If on any Business Day other than a Termination Day, after giving effect to all distributions on such day pursuant to Section 1.4, the
amount on deposit in the Cash Reserve Account exceeds the Cash Reserve, such excess shall be released from the Cash Reserve Account and treated as Collections for purposes of Section 1.4 for the following Business Day. 

Section 1.5. Fees. (a) The Seller shall pay to the Purchaser Agents certain fees in the amounts and on the dates set
forth in a letter dated April 26, 2011 between the Seller, AFC and the Purchaser Agents, as such letter agreement may be amended, supplemented or otherwise modified from time to time in accordance with the terms thereof (the “Fee
Letter”). 
 (b) The Seller shall pay to the Backup Servicer the Backup Servicing Fees and any Transition Expenses in
the amounts and on the dates set forth in the Backup Servicing Fee Letter, as the same may be amended, supplemented or otherwise modified from time to time with the prior written consent of the Agent. 

Section 1.6. Payments and Computations, Etc. (a) All amounts to be paid or deposited by the Seller or the Servicer to,
or for the benefit of, any Purchaser Agent, any Purchaser, the Agent or the Backup Servicer hereunder shall be paid or deposited no later than 12:00 noon (Chicago time) on the day when due in same day funds to the Liquidation Account. All
amounts received after noon (Chicago time) will be deemed to have been received on the immediately succeeding Business Day. 

  
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 (b) The Seller, AFC or Servicer (as applicable) shall, to the extent permitted by law, pay
interest on any amount not paid by the respective party to the applicable Person when due hereunder, at an interest rate equal to [*]. 
 (c) All computations of interest under subsection (b) above and all computations of Discount, fees and other amounts hereunder shall be made on the basis of a year of 360 days for the actual number
of days elapsed. Whenever any payment or deposit to be made hereunder shall be due on a day other than a Business Day, such payment or deposit shall be made no later than the next succeeding Business Day and such extension of time shall be included
in the computation of such payment or deposit. 
 Section 1.7. Dividing or Combining Portions of the Investment of any
Participation. The Seller may, on any Yield Period End Date, either (i) divide the Investment of any Purchaser into two or more portions (each, with respect to the applicable Participation, a “Portion of Investment”) equal,
in aggregate, to the Investment of such Purchaser, provided that after giving effect to such division the amount of each such Portion of Investment shall be not less than $1,000,000, or (ii) combine any two or more Portions of Investment
outstanding on such Yield Period End Date and having Yield Periods ending on such Yield Period End Date into a single Portion of Investment equal to the aggregate of the Investment of such Portions of Investment. 

Section 1.8. Increased Costs. (a) If any Purchaser Agent, any Purchaser, the Agent, any Liquidity Bank, any Related CP
Issuer, any other Program Support Provider or any of their respective Affiliates (each an “Affected Person”) determines that the existence of or compliance with (i) any law or regulation or any change therein or in the
interpretation or application thereof, in each case adopted, issued or occurring after the date hereof or (ii) any request, guideline or directive from any central bank or other Official Body (whether or not having the force of law) issued,
occurring or first applied after the date of this Agreement affects or would affect the amount of capital required or expected to be maintained by such Affected Person and such Affected Person determines that the amount of such capital is increased
by or based upon the existence of any commitment to make purchases of or otherwise to maintain the investment in Pool Receivables related to this Agreement or any related liquidity facility or credit enhancement facility and other commitments of the
same type, then, upon written demand by such Affected Person (with a copy to the Agent and the applicable Purchaser Agent (if any)), the Seller shall immediately pay to the Agent, for the account of such Affected Person, from time to time as
specified by such Affected Person, additional amounts sufficient to compensate such Affected Person in the light of such circumstances, to the extent that such Affected Person reasonably determines such increase in capital to be allocable to the
existence of any of such commitments or maintenance of its investment in the Pool Receivables; provided that within 30 days of an Affected Person’s knowledge of any such circumstance such Affected Person shall notify the Seller in
writing of the same and whether such Affected Person will request that the Seller indemnify it for such circumstance. A certificate as to such amounts submitted to the Seller, the Agent and the applicable Purchaser Agent (if any) by such Affected
Person shall be conclusive and binding for all purposes, absent manifest error. Notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all rules and

  
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regulations promulgated thereunder or issued in connection therewith shall be deemed to have been introduced as of the date after the date hereof, thereby constituting a regulatory change
hereunder, regardless of the date enacted, adopted or issued. 
 (b) If, due to either (i) the introduction of or any
change in or in the interpretation of any law or regulation or (ii) compliance with any guideline or request from any central bank or other Governmental Authority (whether or not having the force of law), there shall be any increase in the cost
to any Affected Person of agreeing to purchase or purchasing, or maintaining the ownership of the related Participation(s) in respect of which Discount is computed by reference to the Eurodollar Rate, then, upon written demand by such Affected
Person, the Seller shall immediately pay to the Agent, for the account of such Affected Person, from time to time as specified, additional amounts sufficient to compensate such Affected Person for such increased costs; provided that within 30
days of an Affected Person’s knowledge of any such circumstance such Affected Person shall notify the Seller in writing of the same and whether such Affected Person will request that the Seller indemnify it for such circumstance. A certificate
as to such amounts submitted to the Seller, the Agent and the applicable Purchaser Agent (if any), by such Affected Person shall be conclusive and binding for all purposes, absent manifest error. 

Section 1.9. Dilutions; Application of Payments. 
 (a) if on any day 
 (i) the Outstanding Balance of any Pool Receivable is reduced
or adjusted as a result of any discount, rebate or other adjustment made by the Originator, Seller or Servicer, or any setoff or dispute between the Seller, Originator or the Servicer and an Obligor, the Seller shall be deemed to have received on
such day a Collection of such Pool Receivable in the amount of such reduction or adjustment; or 
 (ii) any of the
representations or warranties in paragraphs A.(g) or A.(o) of Exhibit III is not true with respect to any Pool Receivable, the Seller shall be deemed to have received on such day a Collection of such Pool Receivable in full. 

Any such deemed Collections shall be deposited by the Seller into the Liquidation Account on the first Business Day of the calendar week following deemed
receipt thereof. 
 (b) Except as otherwise required by applicable law or the relevant Contract, all Collections received from
an Obligor of any Receivable shall be applied in accordance with the Contract with such Obligor and the Credit and Collection Policy. 
 (c) If and to the extent any Secured Party shall be required for any reason to pay over to an Obligor (or any trustee, receiver, custodian or similar official in any Insolvency Proceeding) any amount
received by it hereunder, such amount shall be deemed not to have been so received but rather to have been retained by the Seller and, accordingly, such Secured Party shall have a claim against the Seller for such amount, payable when and to the
extent that any distribution from or on behalf of such Obligor is made in respect thereof. 

  
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 Section 1.10. Requirements of Law. In the event that any Affected Person
determines that the existence of or compliance with (i) any law or regulation or any change therein or in the interpretation or application thereof, in each case adopted, issued or occurring after the date hereof or (ii) any request,
guideline or directive from any central bank or other Governmental Authority (whether or not having the force of law) issued or occurring after the date of this Agreement: 

(i) does or shall subject such Affected Person to any tax of any kind whatsoever with respect to this Agreement, any
increase in the applicable Participation(s) or in the amount of Investment relating thereto, or does or shall change the basis of taxation of payments to such Affected Person on account of Collections, Discount or any other amounts payable hereunder
(excluding taxes imposed on the overall net income of such Affected Person, and franchise taxes imposed on such Affected Person, by the jurisdiction under the laws of which such Affected Person is organized or doing business or a political
subdivision thereof); 
 (ii) does or shall impose, modify or hold applicable any reserve, special deposit,
compulsory loan or similar requirement against assets held by, or deposits or other liabilities in or for the account of, purchases, advances or loans by, or other credit extended by, or any other acquisition of funds by, any office of such Affected
Person which are not otherwise included in the determination of the Eurodollar Rate or the Base Rate hereunder; or 
 (iii) does or shall impose on such Affected Person any other condition; 
 and the result of any of
the foregoing is (x) to increase the cost to such Affected Person of acting as a Purchaser Agent or Agent or of agreeing to purchase or purchasing or maintaining the ownership of undivided ownership interests with regard to the applicable
Participation or any Portion of Investment (or interests therein) in respect of which Discount is computed by reference to the Eurodollar Rate or the Base Rate or (y) to reduce any amount receivable hereunder (whether directly or indirectly)
funded or maintained by reference to the Eurodollar Rate or the Base Rate, then, in any such case, upon written demand by such Affected Person the Seller shall pay the Agent, for the account of such Affected Person, any additional amounts necessary
to compensate such Affected Person for such additional cost or reduced amount receivable. All such amounts shall be payable as incurred. A certificate from such Affected Person to the Seller certifying, in reasonably specific detail, the basis for,
calculation of, and amount of such additional costs or reduced amount receivable shall be conclusive in the absence of manifest error; provided, however, that no Affected Person shall be required to disclose any confidential or tax
planning information in any such certificate. 
 Section 1.11. Inability to Determine Eurodollar Rate. In the event
that any Purchaser Agent shall have determined prior to the first day of any Yield Period for the Participation of its Purchaser (which determination shall be conclusive and binding upon the parties hereto) by reason of circumstances affecting the
interbank Eurodollar market, either (a) dollar deposits in the relevant amounts and for the relevant Yield Period are not available, (b) adequate and reasonable means do not exist for ascertaining the Eurodollar Rate for such Yield Period
or (c) the Eurodollar Rate determined pursuant hereto does not accurately reflect the cost (as 

  
 10 

 
conclusively determined by such Purchaser Agent) to any Purchaser for which such Purchaser Agent acts as agent of maintaining each such Portion of Investment of such Purchaser during such Yield
Period, such Purchaser Agent shall promptly give telephonic notice of such determination, confirmed in writing, to the Seller prior to the first day of such Yield Period. Upon delivery of such notice (a) no Portion of Investment of such
Purchaser shall be funded thereafter at the Bank Rate determined by reference to the Eurodollar Rate, unless and until the applicable Purchaser Agent shall have given notice to the Seller that the circumstances giving rise to such determination no
longer exist, and (b) with respect to any outstanding Portions of Investment then funded at the Bank Rate determined by reference to the Eurodollar Rate, such Bank Rate shall automatically be converted to the Bank Rate determined by reference
to the Base Rate at the respective Yield Period End Dates relating to such Portions of Investment. 
 Section 1.12.
Additional and Replacement Purchasers, Increase in Maximum Amount. (a) The Seller shall have the right, at any time and from time to time, with the prior written consent of the Agent to add any entity as a Purchaser hereunder (which
addition may increase the Maximum Amount if a Purchaser is added) or increase the Maximum Commitment of any existing Purchaser. No increase in the Maximum Commitment of a Purchaser hereunder shall be effective unless, if the increasing Purchaser is
a Note Issuer, such Note Issuer shall have received written confirmation by the Rating Agencies that such action shall not cause the rating on the then outstanding Notes of such Note Issuer to be downgraded or withdrawn. Each such addition of a new
Purchaser hereunder shall be effected by delivery to the Seller, the Servicer, the Agent and each Purchaser Agent, of a Joinder Agreement executed by the Seller, the Servicer, the Agent, such new Purchaser and its Purchaser Agent (if different from
the Purchaser) in substantially the form of Annex C hereto. Upon receipt of a Joinder Agreement, if such Joinder Agreement has been fully executed and completed and is substantially in the form of Annex C, the Servicer shall, not less
than five (5) Business Days prior to the effectiveness of such Joinder Agreement give prompt written notice to all Purchaser Agents, the Agent and Purchasers as to (i) the name, identity and address for receiving notices of the new
Purchaser(s) and Purchaser Agent(s) becoming party hereto, (ii) the Maximum Commitment of such new Purchaser, (iii) the change in the Maximum Amount and (iv) the effective date of such Joinder Agreement. Immediately upon the
effectiveness of such Joinder Agreement, such additional Purchaser shall purchase, by wire transfer of immediately available funds its Participation. Effective with the payment of such amounts, such new Purchaser and its Purchaser Agent designated
in the applicable Joinder Agreement shall each become parties hereto. 
 (b) By executing and delivering a Joinder Agreement,
each new Purchaser and Purchaser Agent confirms to and agrees with the Agent and each other Purchaser and Purchaser Agent party hereto as follows: (A) such new Purchaser has received a copy of this Agreement, and the Purchase and Sale
Agreement, together with copies of such financial statements and other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Joinder Agreement; (B) such new Purchaser has made and
will continue to make, independently and without reliance upon the Agent, any Purchaser Agent or any other Purchaser and based on such documents and information as it shall deem appropriate at the time, its own credit decisions in taking or not
taking action under this Agreement; (C) such new Purchaser appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers under this Agreement as are delegated to the Agent by the terms hereof, together
with such powers as are reasonably incidental thereto; and (D) such new Purchaser and 

  
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its Purchaser Agent agrees that it will perform in accordance with their terms all of the obligations which by the terms of this Agreement are required to be performed by it as a Purchaser or
Purchaser Agent. 
 (c) In addition to the foregoing, in the event that any Purchaser or Purchaser Agent (i) does not
consent to an amendment of clause (ii) of the definition of Termination Date to which the Seller and the Servicer have otherwise consented; or (ii) does not consent to any amendment or modification of this Agreement agreed to by the
Seller, the Servicer and the Majority Purchasers but which requires the consent of such Purchaser, then, in any such event, the Seller shall have the right, with the prior written consent of the Agent, to require such Purchaser to assign its
interests in its Participation and the Pool Receivables and all of its rights and obligations under this Agreement to a replacement Purchaser acceptable to the Agent and the Seller. Any such assignment shall be without recourse, representation or
warranty of any kind on the part of the assigning Purchaser, except that such assignment is free and clear of any Adverse Claims created by such Purchaser, and shall be consummated pursuant to documentation reasonably satisfactory to the assignor
and assignee on not less than ten days’ prior written notice, at a purchase price equal to the sum of (w) the aggregate outstanding Investment of the Purchaser being so replaced; (x) all accrued and unpaid Discount on such Investment;
(y) all accrued and unpaid Program Fees owed to or on behalf of such Purchaser; and (z) all other accrued and unpaid expenses, indemnities and other amounts owing under this Agreement to such Purchaser, including any Termination Fees
caused by the above-described assignment. Concurrently with any such assignment, the Seller, the Servicer, such replacement Purchaser and its Purchaser Agent (if different from the Purchaser) shall execute a Joinder Agreement to evidence the terms
and conditions under which such replacement Purchaser has agreed to become a Purchaser hereunder. 
 Section 1.13.
Special Allocation Provisions for Non-Revolving Purchasers. Notwithstanding the definitions of “Pro Rata Share” or “Purchaser Percentage” and the provisions of Section 1.2(b), 1.4(f) and 1.4(g),
such definitions and provisions shall be adjusted such that the Investment of each such Non-Revolving Purchaser shall remain (i) constant prior to the occurrence of the Termination Date or (ii) subject to such other limitations specified
in the applicable Joinder Agreement of such Non-Revolving Purchaser. 
 ARTICLE II. 

REPRESENTATIONS AND WARRANTIES; COVENANTS; 
 TERMINATION EVENTS 
 Section 2.1. Representations and Warranties;
Covenants. Each of the Seller and the Servicer hereby makes the representations and warranties, and hereby agrees to perform and observe the covenants of such Person, set forth in Exhibits III, IV and VII, respectively
hereto. 
 Section 2.2. Termination Events. If any of the Termination Events set forth in Exhibit V hereto
shall occur, the Majority Purchasers may, by notice to the Seller, each Purchaser Agent, the Agent and the Backup Servicer, declare the Termination Date to have occurred (in which case the Termination Date shall be deemed to have occurred);
provided that, automatically upon the occurrence of any event (without any requirement for the passage of time or the giving of 

  
 12 

 
notice) described in subsection (g), (h), (k) or (m) of Exhibit V, the Termination Date shall occur. Upon any such declaration, the occurrence or the
deemed occurrence of the Termination Date, the Agent (at the direction of the Majority Purchasers) shall have, in addition to the rights and remedies which they may have under this Agreement, all other rights and remedies provided after default
under the UCC and under other applicable law, which rights and remedies shall be cumulative. The Agent shall obtain confirmation of the then-current rating of the Notes from the Rating Agencies prior to waiving the occurrence of any Termination
Event of the type described in clause (j) of Exhibit V hereto. 
 ARTICLE III. 

INDEMNIFICATION 

Section 3.1. Indemnities by the Seller. Without limiting any other rights that the Agent, the Purchaser Agents, the
Purchasers, the Related CP Issuers, the Backup Servicer or any of their respective Affiliates, employees, agents, successors, transferees or assigns (each, an “Indemnified Party”) may have hereunder or under applicable law, the
Seller hereby agrees to indemnify each Indemnified Party from and against any and all claims, damages, expenses, losses and liabilities (including Attorney Costs) (all of the foregoing being collectively referred to as “Indemnified
Amounts”) arising out of or resulting from this Agreement or other Transaction Documents (whether directly or indirectly) or the use of proceeds of purchases or reinvestments or the ownership of any Participation, or any interest therein,
or in respect of any Receivable or any Contract regardless of whether any such Indemnified Amounts result from an Indemnified Party’s negligence or strict liability or other acts or omissions of an Indemnified Party, excluding, however,
(a) Indemnified Amounts to the extent resulting from gross negligence or willful misconduct on the part of such Indemnified Party, (b) recourse (except as otherwise specifically provided in this Agreement) for uncollectible Receivables to
be written off consistent with the Credit and Collection Policy or (c) any overall net income taxes or franchise taxes imposed on such Indemnified Party by the jurisdiction under the laws of which such Indemnified Party is organized or any
political subdivision thereof. Without limiting or being limited by the foregoing, and subject to the exclusions set forth in the preceding sentence, the Seller shall pay on demand to each Indemnified Party any and all amounts necessary to indemnify
such Indemnified Party from and against any and all Indemnified Amounts relating to or resulting from any of the following: 
 (i) the failure of any Receivable included in the calculation of the Net Receivables Pool Balance as an Eligible Receivable to be an Eligible Receivable, the failure of any information contained in a
Servicer Report or a Portfolio Certificate to be true and correct, or the failure of any other information provided to any Purchaser, any Purchaser Agent or the Agent with respect to Receivables or this Agreement to be true and correct; 

(ii) the failure of any representation or warranty or statement made or deemed made by the Seller (or any of its officers)
under or in connection with this Agreement to have been true and correct in all respects when made; 

  
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 (iii) the failure by the Seller to comply with any applicable law, rule or
regulation with respect to any Pool Receivable or the related Contract; or the failure of any Pool Receivable or the related Contract to conform to any such applicable law, rule or regulation; 

(iv) the failure (A) to vest in the Agent (for the benefit of the Secured Parties) a valid and enforceable perfected
undivided percentage ownership interest, to the extent of the Aggregate Participation, in the Pool Receivables and Collections with respect thereto and in Seller’s right, title and interest in, to and under the Related Security, and (B) to
vest in the Agent (for the benefit of the Secured Parties) a first priority perfected security interest in all of Seller’s right, title and interest in, to and under the items described in Section 1.2(d)(A) – (F), in
each case, free and clear of any Adverse Claim; 
 (v) the failure to have filed, or any delay in filing,
financing statements or other similar instruments or documents under the UCC of any applicable jurisdiction or other applicable laws with respect to any Pool Receivables and the Related Security and Collections in respect thereof, whether at the
time of any purchase or reinvestment or at any subsequent time; 
 (vi) any dispute, claim, offset or defense
(other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Pool Receivables (including, without limitation, a defense based on such Receivable or the related Contract not being a legal, valid and binding obligation of
such Obligor enforceable against it in accordance with its terms), or any other claim resulting from or relating to the transaction giving rise to such Receivable or relating to collection activities with respect to such Receivable (if such
collection activities were performed by the Seller or any of its Affiliates acting as Servicer or by any agent or independent contractor retained by the Seller or any of its Affiliates); 

(vii) any failure of the Seller to perform its duties or obligations in accordance with the provisions hereof; 

(viii) any products liability or other claim, investigation, litigation or proceeding arising out of or in connection with
goods, insurance or services that are the subject of or secure any Contract; 
 (ix) the commingling of
Collections of Pool Receivables at any time with other funds; 
 (x) any investigation, litigation or proceeding
related to this Agreement or the use of proceeds of purchases or reinvestments or the ownership of any Participation or in respect of any Receivable, Related Security or Contract; 

(xi) any reduction in Investment as a result of the distribution of Collections pursuant to Section 1.4, in
the event that all or a portion of such distributions shall thereafter be rescinded or otherwise must be returned for any reason; 

  
 14 

 (xii) any tax or governmental fee or charge (other than any tax upon or
measured by net income or gross receipts), all interest and penalties thereon or with respect thereto, and all reasonable out-of-pocket costs and expenses, including the reasonable fees and expenses of counsel in defending against the same, which
may arise by reason of the purchase or ownership of any Participation or other interests in the Pool Receivables or in any Related Security or Contract; 
 (xiii) the failure by the Seller or the Servicer to pay when due any taxes payable by it, including, without limitation, the franchise taxes and sales, excise or personal property taxes payable in
connection with the Receivables; 
 (xiv) the failure by the Seller or the Servicer to be duly qualified to do
business, to be in good standing or to have filed appropriate fictitious or assumed name registration documents in any jurisdiction; or 
 (xv) the failure of any Deposit Account Bank to remit any amounts held in its Deposit Account pursuant to the instructions of the Servicer whether by reason of the exercise of setoff rights or otherwise.

 If for any reason the indemnification provided above in this Section 3.1 is unavailable to an Indemnified Party
or is insufficient to hold such Indemnified Party harmless, then the Seller shall contribute to such Indemnified Party the amount otherwise payable by such Indemnified Party as a result of such loss, claim, damage or liability to the maximum extent
permitted under applicable law (but subject to the exclusions set forth in clauses (a) through (c) above). 
 The
obligations of the Seller under this Section 3.1 are limited recourse obligations payable solely from the Collections, the Receivables and Related Security in accordance with the priority of payments set forth in Section 1.4.

 Section 3.2. Indemnities by AFC. Without limiting any other rights that the Agent, any Purchaser, any Purchaser
Agent or any other Indemnified Party may have hereunder or under applicable law, AFC hereby agrees to indemnify each Indemnified Party, forthwith on demand, from and against any and all Indemnified Amounts, awarded against or incurred by any of
them, regardless of whether any such Indemnified Amounts result from an Indemnified Party’s negligence or strict liability or other acts or omissions of an Indemnified Party excluding, however, (a) Indemnified Amounts to the extent
resulting from gross negligence or willful misconduct on the part of such Indemnified Party, (b) recourse (except as otherwise specifically provided in this Agreement) for uncollectible Receivables to be written off consistent with the Credit
and Collection Policy or (c) any overall net income taxes or franchise taxes imposed on such Indemnified Party by the jurisdiction under the laws of which such Indemnified Party is organized or any political subdivision thereof, arising out of
or relating to: 
 (i) the failure of any Receivable included in the calculation of the Net Receivables Pool
Balance as an Eligible Receivable at any time to be an Eligible Receivable at such time, the failure of any information contained in a Servicer Report or a Portfolio Certificate to be true and correct, or the failure of any other information
provided (directly or indirectly) by AFC or the Seller to the Purchasers, the Agent, the Backup Servicer or any Purchaser Agent with respect to Receivables or this Agreement to be true and correct; 

  
 15 

 (ii) any representation or warranty made by AFC under or in connection with
any Transaction Document in its capacity as Servicer or any information or report delivered by or on behalf of AFC in its capacity as Servicer pursuant hereto, which shall have been false, incorrect or misleading in any material respect when made or
deemed made; 
 (iii) the failure by AFC, in its capacity as Servicer, to comply with any applicable law, rule or
regulation (including truth in lending, fair credit billing, usury, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) with respect to any Pool Receivable or other related contract; 

(iv) any failure of AFC to perform its duties, covenants and obligations in accordance with the applicable provisions of
this Agreement or to perform its duties or obligations, if any, under the Contracts; 
 (v) any dispute, claim,
offset or defense (other than discharge in bankruptcy of the Obligor) of the Obligor to the payment of any Pool Receivable resulting from or relating to collection activities with respect to such Receivable (if such collection activities were
performed by the Seller or any of its Affiliates acting as Servicer or by any agent or independent contractor retained by the Seller or any of its Affiliates); 
 (vi) the commingling of Collections of Pool Receivables at any time with other funds; or 
 (vii) any investigation, litigation or proceeding related to AFC’s activities as Servicer under this Agreement. 
 If for any reason the indemnification provided above in this Section 3.2 is unavailable to an Indemnified Party or is insufficient to hold such Indemnified Party harmless, then AFC shall
contribute to such Indemnified Party the amount otherwise payable by such Indemnified Party as a result of such loss, claim, damage or liability to the maximum extent permitted under applicable law (but subject to the exclusions set forth in clauses
(a) through (c) above). 
 Section 3.3. Indemnities by Successor Servicer. Without limiting any other
rights that the Agent, any Purchaser, any Purchaser Agent or any other Indemnified Party may have hereunder under applicable law, each successor Servicer hereby agrees to indemnify each Indemnified Party, forthwith on demand, from and against any
and all Indemnified Amounts, other than Indemnified Amounts resulting from gross negligence or willful misconduct on the part of such Indemnified Party, awarded against or incurred by any of them arising out of or relating to: 

(i) any representation or warranty made by such successor Servicer under or in connection with any Transaction Document in
its capacity as Servicer or any information or report delivered by such successor Servicer pursuant hereto, which shall have been false, incorrect or misleading in any material respect when made or deemed made; 

  
 16 

 (ii) the failure by such successor Servicer to comply with any applicable
law, rule or regulation (including truth in lending, fair credit billing, usury, fair credit reporting, equal credit opportunity, fair debt collection practices and privacy) with respect to any Pool Receivable or other related contract; 

(iii) any failure of such successor Servicer to perform its duties, covenants and obligations in accordance with the
applicable provisions of this Agreement; 
 (iv) any dispute, claim, offset or defense (other than discharge in
bankruptcy of the Obligor) of the Obligor to the payment of any Pool Receivables resulting from or relating to collection activities with respect to such Receivable (if such collection activities were performed by such successor Servicer or by any
agent or independent contractor retained by such successor Servicer); or 
 (v) any investigation, litigation or
proceeding related to such successor Servicer’s activities as Servicer under this Agreement. 
 If for any reason the
indemnification provided above in this Section 3.3 is unavailable to an Indemnified Party or is insufficient to hold such Indemnified Party harmless, then such successor Servicer shall contribute to such Indemnified Party the amount
otherwise payable by such Indemnified Party as a result of such loss, claim, damage or liability to the maximum extent permitted under applicable law. 
 Notwithstanding anything to the contrary herein, in no event shall any successor Servicer be liable to any Person for any act or omission of any predecessor Servicer. 

ARTICLE IV. 

ADMINISTRATION AND COLLECTIONS 
 Section 4.1. Appointment of Servicer. (a) The servicing, administering and collection of the Pool Receivables shall be conducted by the Person so designated from time to time as Servicer
in accordance with this Section 4.1. Until the Majority Purchasers give notice to the Seller, the Agent and the Servicer (in accordance with the following sentence) of the designation of a new Servicer, AFC is hereby designated as, and
hereby agrees to perform the duties and obligations of, the Servicer pursuant to the terms hereof. Upon the occurrence of a Termination Event, the Majority Purchasers may designate the Backup Servicer or any other Person (including the Agent) to
succeed the Servicer, on the condition that any such Person so designated (other than the Backup Servicer, except to the extent specified in the Backup Servicing Agreement) shall agree in writing to perform the duties and obligations of the Servicer
pursuant to the terms hereof unless otherwise consented to by the Majority Purchasers. 
 (b) Upon the designation of a
successor Servicer as set forth in Section 4.1(a) hereof, the Servicer agrees that it will terminate its activities as Servicer hereunder in a manner which the Agent determines will facilitate the transition of the performance of such
activities to the new 

  
 17 

 
Servicer, and the Servicer shall cooperate with and assist such new Servicer. Such cooperation shall include (without limitation) access to and transfer of all records and use by the new Servicer
of all licenses, hardware or software necessary or desirable to collect the Pool Receivables and the Related Security. Without limiting the foregoing, the Servicer agrees that, at any time following the occurrence of a Termination Event, the
Servicer shall, at the request of the Agent (i) promptly identify all branch offices, loan processing offices or other locations at which the Pool Receivable Documents are then being held, (ii) allow the Agent or its designee full access
to all such locations and all Pool Receivable Documents, (iii) promptly arrange, at the Servicer’s expense, the transfer of possession of all such Pool Receivable Documents to the Backup Servicer, any successor Servicer or other
third-party custodian specified by the Agent and (iv) instruct the Servicer’s agents and any person with whom the Servicer or its agents have contracted to hold any such Pool Receivable Documents to provide full access to, and/or transfer
possession of, any Pool Receivable Documents held by such agent or contractor. The Servicer agrees to take no action which would impede or impair the ability of the Agent or its designees to gain access to the Pool Receivable Documents or to obtain
possession thereof in accordance with the provisions hereof. The parties hereto agree that the covenants contained in the foregoing sentence are reasonable and necessary for the protection of the legitimate interests of the Secured Parties in the
Pool Receivables. Accordingly, in addition to other remedies provided at law or equity, upon any breach by the Servicer of the covenants contained in the second preceding sentence, the Agent shall be entitled to seek specific performance and
injunctive relief by and against the Servicer prohibiting any further breach of such covenants, without the necessity of proving irreparable injury or posting bond. 
 (c) The Servicer acknowledges that, in making its decision to execute and deliver this Agreement, the Purchaser Agents, the Agent and the Purchasers have relied on the Servicer’s agreement to act as
Servicer hereunder. Accordingly, the Servicer agrees that it will not voluntarily resign as Servicer. 
 (d) The Servicer may
delegate its duties and obligations hereunder to any subservicer (each, a “Sub-Servicer”); provided that, in each such delegation, (i) such Sub-Servicer shall agree in writing to perform the duties and obligations of the
Servicer pursuant to the terms hereof, (ii) the Servicer shall remain primarily liable to the Secured Parties for the performance of the duties and obligations so delegated, (iii) the Secured Parties shall have the right to look solely to
the Servicer for such performance and (iv) the terms of any agreement with any Sub-Servicer shall provide that the Majority Purchasers may terminate such agreement upon the termination of the Servicer hereunder in accordance with
Section 4.1(a) above by giving notice of its desire to terminate such agreement to the Servicer (and the Servicer shall provide appropriate notice to such Sub-Servicer); provided further, no such delegation shall be
effective without the prior written consent of the Majority Purchasers. 
 Section 4.2. Duties of Servicer; Relationship
to Backup Servicing Agreement. (a) The Servicer shall take or cause to be taken all such action as may be necessary or advisable to collect each Pool Receivable from time to time, all in accordance with this Agreement, accepted industry
standards and all applicable laws, rules and regulations, with reasonable care and diligence, and in accordance with the Credit and Collection Policy. Servicer may sue to collect upon Pool Receivables or enforce or recover Related Security, in its
own name, if possible. If Servicer elects to commence a legal proceeding to collect a Pool Receivable or enforce or 

  
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recover Related Security, the act of commencement shall be deemed to be an automatic assignment of the Pool Receivable or Seller’s and Purchasers’ rights in, to and under the Related
Security to Servicer, for purposes of collection only. The Servicer shall set aside for the accounts of the Seller, the Backup Servicer and the Purchasers the amount of the Collections to which each is entitled in accordance with
Section 1.4. The Seller shall deliver to the Servicer and the Servicer shall hold for the benefit of the Secured Parties in accordance with their respective interests, all records and documents (including without limitation computer
tapes or disks) with respect to each Pool Receivable and all Pool Receivable Documents. The Servicer (if the Servicer is AFC or one of its Affiliates) shall stamp each page of each Contract related to a Pool Receivable with the following legend
“This Receivable has been sold to AFC Funding Corporation and an interest therein has been granted to BMO Capital Markets Corp. as Agent”. During such period as a Backup Servicer is required to be maintained hereunder, the Servicer agrees
to provide the Backup Servicer with an electronic (scanned) copy of each Contract related to a Pool Receivable and with monthly updates thereafter upon receipt of which the Backup Servicer shall perform a reconciliation of the Receivables data and
recalculate the Servicer Report. Notwithstanding anything to the contrary contained herein, the Agent may direct the Servicer to commence or settle any legal action to enforce collection of any Pool Receivable or to foreclose upon or repossess any
Related Security; provided, however, that no such direction may be given unless a Termination Event has occurred. AFC is hereby appointed the custodian of the Pool Receivable Documents for the benefit of the Agent on behalf of the
Secured Parties; provided, however, that such appointment may be terminated pursuant to the terms hereof. AFC, or an affiliate on its behalf, will maintain fidelity and forgery insurance and adequate insurance to replace all Pool
Receivable Documents due to casualty loss or theft of such documents. In performing its duties as servicer and custodian, AFC shall act with reasonable care, using that degree of skill and attention that AFC exercises with respect to the files
relating to all comparable contracts that AFC owns or services for itself or others. AFC shall (i) maintain the Pool Receivable Documents in such a manner as shall enable the Agent and the Purchaser Agents to verify the accuracy of AFC’s
recordkeeping; and (ii) promptly report to the Agent and the Purchaser Agents any failure on its part or the part of its agents to hold the Pool Receivable Documents and promptly take appropriate action to remedy any such failure. Upon
termination of AFC’s appointment as custodian hereunder and the delivery of the Pool Receivable Documents to the successor custodian, the successor custodian shall review such documents to determine whether it is missing any documents, and AFC
shall cooperate with the successor custodian and use its best efforts to assist the successor custodian to obtain the missing documents. AFC shall maintain continuous custody of the Pool Receivable Documents in secure facilities in accordance with
customary standards for such custody. 
 (b) In the event the Backup Servicer becomes the successor Servicer hereunder, any
applicable terms and conditions of the Backup Servicing Agreement relating to its performance as successor Servicer shall be deemed to be incorporated herein, and the obligations and liabilities of the successor Servicer (as such obligations and
liabilities apply to the Backup Servicer acting in such capacity) shall be deemed to be modified in accordance with the provisions thereof. To the extent that any conflict exists between the terms of this Agreement and the Backup Servicing
Agreement, the terms of the Backup Servicing Agreement shall control. 

  
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 (c) The Servicer’s obligations hereunder shall terminate on the Final Payout Date.
After such termination, the Servicer shall promptly deliver to the Seller all books, records and related materials that the Seller previously provided to the Servicer in connection with this Agreement. 

(d) During such period as a Backup Servicer is required to be maintained hereunder, the Servicer shall provide to the Backup Servicer and
the Agent and each Purchaser Agent (if requested) all such information (by the times and in the form) specified to be delivered by the Servicer under the Backup Servicing Agreement. 

(e) Following the occurrence and during the continuation of a Termination Event or a Level One Trigger, the Servicer shall provide to the
Agent and each Purchaser Agent (if requested) on a daily basis a Portfolio Certificate (including information with respect to all Collections received and all Receivables acquired by the Seller). 

Section 4.3. Deposit Accounts; Establishment and Use of Certain Accounts. 

(i) Deposit Accounts. On or prior to the date hereof, the Servicer agrees to transfer ownership and control of each Deposit
Account to the Seller. Seller has granted a valid security interest in each Deposit Account to the Agent (for the benefit of the Secured Parties) pursuant to Section 1.2(d) and shall take all actions reasonably requested by the Agent to
cause the security interest to be perfected under the applicable UCC. 
 (ii) Cash Reserve Account. The Agent has
established and will maintain in existence the Cash Reserve Account. The Cash Reserve Account shall be used to hold the Cash Reserve and for such other purposes described in the Transaction Documents. 

(iii) Liquidation Account. The Agent has established and will maintain in existence the Liquidation Account. The Liquidation
Account shall be used to receive Collections from the Deposit Accounts pursuant to Section 1.4(b) and to hold amounts set aside for the Purchasers, the Backup Servicer and (if the Servicer is not AFC or an Affiliate of AFC) the Servicer
out of the Collections of Pool Receivables prior to the applicable Settlement Dates and for such other purposes described in the Transaction Documents. No funds other than those transferred in accordance with Section 1.4 shall be
intentionally transferred into the Liquidation Account. 
 (iv) Permitted Investments. Any amounts in the Liquidation
Account or the Cash Reserve Account, as the case may be, may be invested by the Liquidation Account Bank or the Cash Reserve Account Bank, respectively, prior to the occurrence of a Termination Event at the Agent’s direction and following the
occurrence of a Termination Event at the Agent’s direction, in Permitted Investments, so long as the Agent’s interest (for the benefit of the Secured Parties) in such Permitted Investments is perfected in a manner satisfactory to the Agent
and such Permitted Investments are subject to no Adverse Claims other than those of the Agent provided hereunder. 
 (v)
Control of Accounts. The Agent may (with written notice to the Purchaser Agents) and shall (at the direction of the Majority Purchasers) following any Termination Event (or an Unmatured Termination Event of the type described in
paragraph (g) of Exhibit V) at any time give notice to any Deposit Account Bank that the Agent is exercising its rights under the 

  
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applicable Deposit Account Agreement to do any or all of the following: (i) to have the exclusive ownership and control of such Deposit Account transferred to the Agent (or such other party
designated by the Majority Purchasers) and to exercise exclusive dominion and control over the funds deposited therein and (ii) to take any or all other actions permitted under the applicable Deposit Account Agreement. The Seller hereby agrees
that if the Agent (or such other party designated by the Majority Purchasers) at any time takes any action set forth in the preceding sentence, the Agent (or such other party designated by the Majority Purchasers) shall have exclusive control of the
proceeds (including Collections) of all Pool Receivables and the Seller hereby further agrees to take any other action that the Majority Purchasers may reasonably request to transfer such control. Any proceeds of Pool Receivables received by the
Seller, the Servicer or AFC (as Servicer or otherwise), thereafter shall be sent immediately to an account designated by the Majority Purchasers and held by the Agent (or such other party designated by the Majority Purchasers) for the benefit of the
Secured Parties. 
 (vi) Location of Liquidation Account and Cash Reserve Account. If at anytime Harris Trust and Savings
Bank is rated below A-1 by S&P or P-1 by Moody’s, the Agent shall promptly establish a new Liquidation Account and a new Cash Reserve Account at a financial institution which is rated at least A-1+ by S&P (or if the financial
institution is the [*] A-1 by S&P) and P-1 by Moody’s and transfer all amounts on deposit in such accounts at Harris Trust and Savings Bank to such new accounts at such financial institution, until such time as Harris Trust and Savings Bank
is rated at least A-1 by S&P and P-1 by Moody’s. 
 Section 4.4. Enforcement Rights. (a) At any time
following the occurrence of a Termination Event: 
 (i) the Majority Purchasers may (with the consent of the
Agent) direct the Obligors that payment of all amounts payable under any Pool Receivable be made directly to the Backup Servicer or such other party designated by the Majority Purchasers, in each case, for the benefit of the Secured Parties;

 (ii) the Majority Purchasers may with the consent of the Agent instruct the Seller or the Servicer to give
notice of the Agent’s interest (for the benefit of the Secured Parties) in Pool Receivables to each Obligor, which notice shall direct that payments be made directly to the Backup Servicer or such other party designated by the Majority
Purchasers (for the benefit of the Secured Parties), and upon such instruction from the Majority Purchasers, the Seller or the Servicer, as applicable, shall give such notice at the expense of the Seller; provided, that if the Seller or the
Servicer fails to so notify each Obligor, the Agent or its designee may so notify the Obligors; and 
 (iii) the
Majority Purchasers may with the consent of the Agent request the Seller or the Servicer to, and upon such request the Seller or the Servicer, as applicable, shall, (A) assemble all of the records necessary or desirable to collect the Pool
Receivables and the Related Security and all Pool Receivable Documents, and transfer or license to any new Servicer the use of all software necessary or desirable to collect the Pool Receivables and the Related Security, and make the same available
to the Backup Servicer or other third-party custodian specified by, and at a place selected by, the Agent and (B) segregate all cash, checks and other instruments received by it from time to time

  
 21 

 
constituting Collections with respect to the Pool Receivables in a manner acceptable to the Agent and, promptly upon receipt, remit all such cash, checks and instruments, duly endorsed or with
duly executed instruments of transfer, to the Agent or the Backup Servicer (or such other party designated by the Majority Purchasers) (for the benefit of the Secured Parties). 

(b) The Seller hereby authorizes the Agent (for the benefit of the Secured Parties), and irrevocably appoints the Agent (acting on behalf
of the Secured Parties) as its attorney-in-fact with full power of substitution and with full authority in the place and stead of the Seller, which appointment is coupled with an interest, to take any and all steps in the name of the Seller and on
behalf of the Seller necessary or desirable, in the determination of the Agent, to collect any and all amounts or portions thereof due under any and all Pool Receivables or Related Security, including, without limitation, endorsing the name of the
Seller on checks and other instruments representing Collections and enforcing such Pool Receivables, Related Security and the related Contracts. The Agent shall only exercise the powers conferred by this subsection (b) after the occurrence of a
Termination Event. Notwithstanding anything to the contrary contained in this subsection (b), none of the powers conferred upon such attorney-in-fact pursuant to the immediately preceding sentence shall subject such attorney-in-fact to any
liability if any action taken by it shall prove to be inadequate or invalid, nor shall they confer any obligations upon such attorney-in-fact in any manner whatsoever. 
 Section 4.5. Responsibilities of the Seller. Anything herein to the contrary notwithstanding, the Seller shall (i) perform all of its obligations, if any, under the Contracts related to
the Pool Receivables to the same extent as if interests in such Pool Receivables had not been transferred hereunder, and the exercise by any Secured Party of its rights hereunder shall not relieve the Seller from such obligations and (ii) pay
when due any taxes, including, without limitation, any sales taxes payable in connection with the Pool Receivables and their creation and satisfaction. The Agent, the Purchaser Agents, the Purchasers, the Backup Servicer and any successor Servicer
shall not have any obligation or liability with respect to any Pool Receivable, any Related Security or any related Contract, nor shall any of them be obligated to perform any of the obligations of the Seller or AFC under any of the foregoing.

 Section 4.6. Servicing Fee. The Servicer shall be paid a monthly fee in arrears, through distributions
contemplated by Section 1.4, equal to (a) at any time AFC or an Affiliate of AFC is the Servicer, [*], (b) at any time the Backup Servicer has become the Servicer hereunder, [*], and (c) at any time a Person other than
AFC, an Affiliate of AFC or the Backup Servicer is the Servicer, the Unaffiliated Servicing Fees or such other amount as the Agent and such successor Servicer shall agree. The Servicing Fee shall not be payable to the extent funds are not available
to pay the Servicing Fee pursuant to Section 1.4. 
 Section 4.7. Specified Ineligible Receivables. On
or prior to the initial date of purchase of a Receivable under the Purchase and Sale Agreement, the Servicer (so long as the Originator is the Servicer) may designate such Receivable as a “Specified Ineligible Receivable” (which
designation may take the form of a specification that a certain class or category of Receivables to be transferred from the Originator to the Seller after such designation will be treated as “Specified Ineligible Receivables”). In
addition, the Servicer (so long as the Originator is the Servicer) may, on behalf of the Seller, (i) designate an existing Receivable then owned by the 

  
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Seller as a “Specified Ineligible Receivable” or (ii) designate an existing Specified Ineligible Receivable then owned by the Seller as a Receivable (i.e., no longer a
“Specified Ineligible Receivable”), in each of cases (i) and (ii) with the prior written consent of the Majority Purchasers. For the avoidance of doubt, any Receivable which was treated as an Eligible Receivable hereunder at any
time may not be treated as a “Specified Ineligible Receivable” without the prior written consent of the Majority Purchasers. The Servicer (so long as the Originator is the Servicer) shall identify the aggregate Outstanding Balance of all
such “Specified Ineligible Receivables” on the Servicer Report. To the extent the Servicer has from time to time identified a Receivable as a “Specified Ineligible Receivable” in accordance with this Section, for so long as such
Receivable is a Specified Ineligible Receivable, (i) such Receivable shall not be included as an Eligible Receivable by the Seller or the Servicer hereunder, (ii) such Receivable shall not be included in any calculations of the Delinquency
Ratio or the Default Ratio or other Pool Receivables information (other than a statement of the aggregate Outstanding Balance of such Specified Ineligible Receivables) hereunder and (iii) such Receivable shall not be considered a Receivable for
purposes of clause (o) of Exhibit V hereof. 
 ARTICLE V. 

THE AGENTS 

Section 5.1. Appointment and Authorization. Each Purchaser and Purchaser Agent (including each Purchaser and Purchaser Agent
that may from time to time become a party hereto) hereby irrevocably designates and appoints BMO Capital Markets Corp. as the “Agent” hereunder and authorizes the Agent to take such actions and to exercise such powers as are delegated to
the Agent hereby and to exercise such other powers as are reasonably incidental thereto. The Agent shall hold, in its name, for the benefit of the Secured Parties, amounts on deposit in the Liquidation Account and the Cash Reserve Account. The Agent
shall not have any duties other than those expressly set forth herein or any fiduciary relationship with any Indemnified Party, and no implied obligations or liabilities shall be read into this Agreement or any other Transaction Document or
otherwise exist against the Agent. The Agent does not assume, nor shall it be deemed to have assumed, any obligation to, or relationship of trust or agency with, the Seller or Servicer. Notwithstanding any provision of this Agreement or any other
Transaction Document to the contrary, in no event shall the Agent ever be required to take any action which exposes the Agent to personal liability (unless indemnified in advance in a manner determined satisfactory to the Agent in its sole and
absolute discretion) or which is contrary to the provision of any Transaction Document or applicable law. 
 (a) Each Purchaser
hereby irrevocably designates and appoints the respective institution identified as the Purchaser Agent for such Purchaser on the signature pages hereto or in any agreement pursuant to which such Purchaser becomes a party hereto, and each authorizes
such Purchaser Agent to take such action on its behalf under the provisions of this Agreement and to exercise such powers and perform such duties as are expressly delegated to such Purchaser Agent by the terms of this Agreement, if any, together
with such other powers as are reasonably incidental thereto. Notwithstanding any provision to the contrary elsewhere in this Agreement, no Purchaser Agent shall have any duties or responsibilities, except those expressly set forth herein, or any
fiduciary relationship with any Purchaser or other Purchaser Agent or the Agent, and no implied covenants, functions, responsibilities, duties, obligations or liabilities on the part of such Purchaser Agent shall be read into this Agreement or
otherwise exist against such Purchaser Agent. 

  
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 (b) Except as otherwise specifically provided in this Agreement, the provisions of this
Article V are solely for the benefit of the Purchaser Agents, the Agent and the Purchasers, and none of the Seller or Servicer shall have any rights as a third-party beneficiary or otherwise under any of the provisions of this
Article V, except that this Article V shall not affect any obligations which any Purchaser Agent, the Agent or any Purchaser may have to the Seller or the Servicer under the other provisions of this Agreement. Furthermore, no
Purchaser shall have any rights as a third-party beneficiary or otherwise under any of the provisions hereof in respect of a Purchaser Agent which is not the Purchaser Agent for such Purchaser. 

(c) In performing its functions and duties hereunder, the Agent shall act solely as the agent of the Secured Parties, and the Agent does
not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the Seller or Servicer or any of their successors and assigns. In performing its functions and duties hereunder, each Purchaser Agent shall
act solely as the agent of its respective Purchasers and does not assume nor shall be deemed to have assumed any obligation or relationship of trust or agency with or for the Seller, the Servicer, any other Purchaser, any other Purchaser Agent or
the Agent, or any of their respective successors and assigns. 
 Section 5.2. Delegation of Duties. The Agent may,
with the prior written consent of the Majority Purchasers, execute any of its duties through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible
to the Purchaser Agents or any Purchaser for the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care. 
 Section 5.3. Exculpatory Provisions. None of the Purchaser Agents, the Agent or any of their directors, officers, agents or employees shall be liable for any action taken or omitted
(i) with the consent or at the direction of the Majority Purchasers (or in the case of any Purchaser Agent, the Purchaser relating to such Purchaser Agent) or (ii) in the absence of such Person’s gross negligence or willful
misconduct. The Agent shall not be responsible to any Purchaser or Purchaser Agent for (i) any recitals, representations, warranties or other statements made by the Seller, Servicer, the Originator or any of their Affiliates, (ii) the
value, validity, effectiveness, genuineness, enforceability or sufficiency of any Transaction Document, (iii) any failure of the Seller, the Servicer, the Originator or any of their Affiliates to perform any obligation it may have under any
Transaction Document to which it is a party or (iv) the satisfaction of any condition specified in Exhibit II. The Agent shall not have any obligation to any Purchaser or any Purchaser Agent to ascertain or inquire about the
observance or performance of any agreement contained in any Transaction Document or to inspect the properties, books or records of the Seller, Servicer, the Originator or any of their Affiliates. 

Section 5.4. Reliance by Agents. Each Purchaser Agent and the Agent shall in all cases be entitled to rely, and shall be
fully protected in relying, upon any document or other writing or conversation believed by it to be genuine and correct and to have been signed, sent or made by the proper Person and upon advice and statements of legal counsel (including counsel to
the Seller or Servicer), independent accountants and other experts selected by the Agent or any such 

  
 24 

 
Purchaser Agent. Each Purchaser Agent and the Agent shall in all cases be fully justified in failing or refusing to take any action under any Transaction Document unless it shall first receive
such advice or concurrence of the Majority Purchasers (or in the case of any Purchaser Agent, the Purchaser relating to such Purchaser Agent) and it shall first be indemnified to its satisfaction against any and all liability and expense which may
be incurred by reason of taking or continuing to take any such action. 
 (a) With regard to the Purchasers and the Purchaser
Agents, the Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of the Majority Purchasers and the Purchaser Agents, and such request and any action taken or failure
to act pursuant thereto shall be binding upon all Purchasers and Purchaser Agents. 
 (b) Purchasers that have a common
Purchaser Agent and that have a majority of the Investment of all such related Purchasers shall be entitled to request or direct the related Purchaser Agent to take action, or refrain from taking action, under this Agreement on behalf of such
Purchasers. With regard to the Purchasers and the Purchaser Agents, such Purchaser Agent shall in all cases be fully protected in acting, or in refraining from acting, under this Agreement in accordance with a request of such Purchasers, and such
request and any action taken or failure to act pursuant thereto shall be binding upon all of such Purchaser Agent’s related Purchasers. 
 (c) Unless otherwise advised in writing by a Purchaser Agent or by any Purchaser on whose behalf such Purchaser Agent is purportedly acting, each party to this Agreement may assume that (i) such
Purchaser Agent is acting for the benefit of each of the Purchasers for which such Purchaser Agent is identified herein (or in any Joinder Agreement or assignment agreement) as being the Purchaser Agent, as well as for the benefit of each assignee
or other transferee from any such Person, and (ii) each action taken by such Purchaser Agent has been duly authorized and approved by all necessary action on the part of the Purchasers on whose behalf it is purportedly acting. Each Purchaser
Agent and its Purchaser(s) shall agree amongst themselves as to the circumstances and procedures for removal, resignation and replacement of such Purchaser Agent. 
 Section 5.5. Notice of Termination Date. Neither any Purchaser Agent nor the Agent shall be deemed to have knowledge or notice of the occurrence of any Termination Event or Unmatured
Termination Event unless such Person has received notice from any Purchaser, Purchaser Agent, the Servicer or the Seller stating that a Termination Event or Unmatured Termination Event has occurred hereunder and describing such Termination Event or
Unmatured Termination Event. If the Agent receives such a notice, it shall promptly give notice thereof to each Purchaser Agent whereupon each such Purchaser Agent shall promptly give notice thereof to its Purchasers. If a Purchaser Agent receives
such a notice (other than from the Agent), it shall promptly give notice thereof to the Agent. The Agent shall take such action concerning a Termination Event or Unmatured Termination Event as may be directed by the Majority Purchasers (unless such
action is otherwise specified herein as requiring the consent of all Purchasers), but until the Agent receives such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, as the Agent deems
advisable and in the best interests of the Secured Parties. 

  
 25 

 Section 5.6. Non-Reliance on Agent, Purchaser Agents and Other Purchasers. Each
Purchaser expressly acknowledges that none of the Agent, the Purchaser Agents nor any of their respective officers, directors, employees, agents, attorneys-in-fact or Affiliates has made any representations or warranties to it and that no act by the
Agent or any Purchaser Agent hereafter taken, including any review of the affairs of the Seller, Servicer or the Originator, shall be deemed to constitute any representation or warranty by the Agent or such Purchaser Agent, as applicable. Each
Purchaser represents and warrants to the Agent and the Purchaser Agents that, independently and without reliance upon the Agent, Purchaser Agents or any other Purchaser and based on such documents and information as it has deemed appropriate, it has
made and will continue to make its own appraisal of and investigation into the business, operations, property, prospects, financial and other conditions and creditworthiness of the Seller, Servicer and the Originator, and the Receivables and its own
decision to enter into this Agreement and to take, or omit, action under any Transaction Document. Except for items specifically required to be delivered hereunder, the Agent shall not have any duty or responsibility to provide any Purchaser Agent
with any information concerning the Seller, Servicer or the Originator or any of their Affiliates or the Receivables that comes into the possession of the Agent or any of its officers, directors, employees, agents, attorneys-in-fact or Affiliates.

 Section 5.7. Agent, Purchaser Agents and Purchasers. Each of the Purchasers, the Agent, the Purchaser Agents and
their Affiliates may extend credit to, accept deposits from and generally engage in any kind of banking, trust, debt or other business with the Seller, KAR, Servicer or the Originator or any of their Affiliates. With respect to the acquisition of
the Eligible Receivables pursuant to this Agreement, any of the Purchaser Agents and the Agent shall, to the extent they become Purchasers hereunder, have the same rights and powers under this Agreement as any Purchaser and may exercise the same as
though it were not such an agent, and the terms “Purchaser” and “Purchasers” shall, in such case, include such Purchaser Agent or the Agent in their individual capacities. 

Section 5.8. Indemnification. Each Purchaser shall indemnify and hold harmless the Agent (but solely in its capacity as
Agent) and its officers, directors, employees, representatives and agents (to the extent not reimbursed by the Seller or Servicer and without limiting the obligation of the Seller or Servicer to do so), ratably in accordance with their respective
Investment from and against any and all liabilities, obligations, losses, damages, penalties, judgments, settlements, costs, expenses and disbursements of any kind whatsoever (including in connection with any investigative or threatened proceeding,
whether or not the Agent or such Person shall be designated a party thereto) that may at any time be imposed on, incurred by or asserted against the Agent or such Person as a result of, or related to, any of the transactions contemplated by the
Transaction Documents or the execution, delivery or performance of the Transaction Documents or any other document furnished in connection therewith (but excluding any such liabilities, obligations, losses, damages, penalties, judgments,
settlements, costs, expenses or disbursements resulting solely from the gross negligence or willful misconduct of the Agent or such Person as finally determined by a court of competent jurisdiction). The obligations of any Note Issuer under this
Section 5.8 shall be subject to the restrictions of Section 6.5. 
 Section 5.9. Successor
Agent. The Agent may, upon at least thirty (30) days notice to the Seller, the Servicer, the Backup Servicer, each Purchaser and Purchaser Agent, resign as 

  
 26 

 
Agent. Such resignation shall not become effective until a successor Agent is appointed by the Majority Purchasers and has accepted such appointment. Upon such acceptance of its appointment as
Agent hereunder by a successor Agent, such successor Agent shall succeed to and become vested with all the rights and duties of the retiring Agent, and the retiring Agent shall be discharged from its duties and obligations under the Transaction
Documents. After any retiring Agent’s resignation hereunder, the provisions of Sections 3.1, 3.2, 3.3 and this Article V shall inure to its benefit as to any actions taken or omitted to be taken by it while it
was the Agent. 
 ARTICLE VI. 
 MISCELLANEOUS 
 Section 6.1. Amendments, Etc. No amendment or waiver
of any provision of this Agreement or consent to any departure by the Seller or Servicer therefrom shall be effective unless in a writing signed by the Majority Purchasers and, in the case of any amendment, by the Seller and the Servicer and then
such amendment, waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that (i) other than an amendment to extend the scheduled Termination Date, no amendment
shall be effective unless each Note Issuer that is a Purchaser (or the applicable Purchaser Agent on its behalf) shall have received written confirmation by the Rating Agencies that such amendment shall not cause the rating on the then outstanding
Notes of such Note Issuer to be downgraded or withdrawn; (ii) no amendment shall be effective which would reduce the amount of Investment or Discount, or fees or other amounts payable to any Purchaser hereunder, or delay any scheduled date for
payment thereof (including any scheduled occurrence of the Termination Date) absent the prior written consent of such Purchaser; (iii) no increase in a Purchaser’s Maximum Commitment shall be effective without the prior written consent of
such Purchaser; (iv) no amendments to this Section 6.1 or to the definition of Majority Purchasers shall be effective without the prior written consent of all Purchasers and (v) no amendments to Sections 1.1,
1.2, 1.3, 1.4, 1.5, 1.6, 1.8, 1.10, 1.11, 1.12, 3.1, 3.2, Article V, 6.2, 6.3, 6.4, 6.5, 6.6, 6.7, 6.9, 6.10,
6.11 or 6.13 or the definitions of Applicable Margin, Bank Rate, Base Rate, Carry Costs, CP Rate, Discount, Eurodollar Rate, Federal Funds Rate, Investment, Level One Trigger, LIBOR, Participation, Loss Percentage, Loss Reserve, Net
Receivables Pool Balance, Normal Concentration Percentage, Program Fee, Special Concentration Percentage, Special Obligor, Termination Date, Termination Fee, Yield Period, or any definitions incorporated in such definitions, shall be effective in
each case without the consent of the Majority Purchasers and the Agent; and provided, further, that no such amendment shall in any way amend any provisions of this Agreement applicable to the rights or obligations of the Agent or any
Purchaser Agent without the prior written consent of the Agent or such Purchaser Agent, as applicable. No failure on the part of the Agent, any Purchaser, or any Purchaser Agent 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 right hereunder preclude any other or further exercise thereof or the exercise of any other right. 
 Section 6.2. Notices, Etc. All notices and other communications hereunder shall, unless otherwise stated herein, be in writing (which shall include facsimile and electronic mail communication)
and sent or delivered, to each party hereto, at its address set forth under its name on the signature pages hereof or, in the case of the Backup Servicer, at its notice address 

  
 27 

 
designated in the Backup Servicing Agreement or, in any case, at such other address as shall be designated by such party in a written notice to the other parties hereto. Notices and
communications by facsimile or electronic mail shall be effective when sent (and shall, unless such delivery is waived by the recipient by electronic mail or other means, be followed by hard copy sent by first class mail), and notices and
communications sent by other means shall be effective when received. 
 Section 6.3. Assignability. (a) This
Agreement and any Purchaser’s rights and obligations herein (including ownership of its Participation) shall be assignable, in whole or in part, by such Purchaser and its successors and assigns with the prior written consent of the Seller and
the Agent; provided, however, that such consent shall not be unreasonably withheld; and provided, further, that no such consent shall be required if the assignment is made to (i) any Affiliate of such Purchaser,
(ii) any Liquidity Bank (or any Person who upon such assignment would be a Liquidity Bank) of such Purchaser or (iii) any Program Support Provider (or any Person who upon such assignment would be a Program Support Provider) of such
Purchaser. Each assignor may, in connection with the assignment, disclose to the applicable assignee any information relating to the Seller or the Pool Receivables furnished to such assignor by or on behalf of the Seller, the Agent, the Purchasers
or the Purchaser Agents. 
 Upon the assignment by a Purchaser in accordance with this Section 6.3, the assignee
receiving such assignment shall have all of the rights of such Purchaser with respect to the Transaction Documents and the Investment (or such portion thereof as has been assigned). 

(b) Each Purchaser may at any time grant to one or more banks or other institutions (each a “Liquidity Bank”) party to a
Liquidity Agreement or to any other Program Support Provider participating interests or security interests in its Participation. In the event of any such grant by a Purchaser of a participating interest to a Liquidity Bank or other Program Support
Provider, the Purchaser shall remain responsible for the performance of its obligations hereunder. The Seller agrees that each Liquidity Bank or other Program Support Provider shall be entitled to the benefits of Sections 1.8 and 1.10.

 (c) This Agreement and the rights and obligations of any Purchaser Agent hereunder shall be assignable, in whole or in part,
by such Purchaser Agent and its successors and assigns; provided, however, that if such assignment is to any Person that is not an Affiliate of the assigning Purchaser Agent, such Purchaser Agent must receive the prior written consent
(which consent in each case shall not be unreasonably withheld) of the Agent and the Seller. 
 (d) Except as provided in
Section 4.1(d), neither the Seller nor the Servicer may assign its rights or delegate its obligations hereunder or any interest herein without the prior written consent of the Majority Purchasers. 

(e) Without limiting any other rights that may be available under applicable law, the rights of any Purchaser may be enforced by it
directly or by its Purchaser Agent or its other agents. 
 (f) [*]. 

  
 28 

 Section 6.4. Costs, Expenses and Taxes. (a) In addition to the rights of
indemnification granted under Section 3.1 hereof, the Seller agrees to pay on demand all reasonable costs and expenses in connection with the preparation, execution, delivery and administration (including periodic auditing of Pool
Receivables) of this Agreement, any Liquidity Agreement, the other Transaction Documents and the other documents and agreements to be delivered hereunder or in connection herewith, including all reasonable costs and expenses relating to the
amending, amending and restating, modifying or supplementing any such documents or agreements and the waiving of any provisions thereof, and including in all cases, without limitation, Rating Agency fees (including in connection with the execution
hereof and any amendments hereto) and Attorney Costs for the Agent, each Purchaser, each Program Support Provider, each Purchaser Agent, the Backup Servicer, any successor Servicer and their respective Affiliates and agents with respect thereto and
with respect to advising the Agent, the Purchaser, each Program Support Provider and their respective Affiliates and agents as to their rights and remedies under this Agreement and the other Transaction Documents, and all reasonable costs and
expenses, if any (including Attorney Costs), of each Purchaser Agent, each Purchaser, each Program Support Provider, the Agent, the Backup Servicer, any successor Servicer and their respective Affiliates and agents in connection with the enforcement
of this Agreement and the other Transaction Documents. 
 (b) In addition, the Seller shall pay on demand any and all stamp and
other taxes and fees payable in connection with the execution, delivery, filing and recording of this Agreement or the other documents or agreements to be delivered hereunder, and agrees to save each Indemnified Party harmless from and against any
liabilities with respect to or resulting from any delay in paying or omission to pay such taxes and fees. 
 Section 6.5.
No Proceedings; Limitation on Payments. (a) Each of the Seller, the Servicer, the Agent, the Purchaser Agents, the Purchasers, the Backup Servicer, each assignee of a Participation or any interest therein, and each Person which enters
into a commitment to purchase or does purchase a Participation or interests therein hereby covenants and agrees that it will not institute against, or join any other Person in instituting against, any Note Issuer or Related CP Issuer any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after the latest maturing Note issued by any such Note Issuer or Related CP Issuer
is paid in full. 
 (b) Notwithstanding any provisions contained in this Agreement to the contrary, no Note Issuer shall, nor
shall it be obligated to, pay any amount pursuant to this Agreement unless such Note Issuer has excess cash flow from operations or has received funds with respect to such obligation which may be used to make such payment and which funds or excess
cash flow are not required to repay its Notes when due. Any amounts which a Note Issuer does not pay pursuant to the operation of the preceding sentence shall not constitute a claim against such Note Issuer for any such insufficiency unless and
until the condition described in the preceding sentence is satisfied. Nothing in this subsection (b) shall be construed to forgive or cancel any obligations of such Note Issuer hereunder. 

(c) Each of the Servicer, the Agent, the Purchaser Agents, the Purchasers, the Backup Servicer, each assignee of a Participation or any
interest therein, and each Person which enters 

  
 29 

 
into a commitment to purchase or does purchase a Participation or interests therein hereby covenants and agrees that it will not institute against, or join any other Person in instituting
against, the Seller any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal or state bankruptcy or similar law, for one year and one day after all amounts payable by the Seller
hereunder are paid in full. 
 (d) Notwithstanding any provisions contained in this Agreement to the contrary, the Seller shall
not be obligated to pay any amount pursuant to this Agreement unless the Seller has property or other assets which may be used to make such payment. Any amounts which the Seller does not pay pursuant to the operation of the preceding sentence shall
not constitute a claim against the Seller for any such insufficiency unless and until the conditions described in the preceding sentence are satisfied. Nothing in this subsection (d) shall be construed to forgive or cancel any obligations of
the Seller hereunder. 
 Section 6.6. Confidentiality. Unless otherwise required by applicable law or already known
by the general public or the third party to which it is disclosed, the Seller agrees to maintain the confidentiality of this Agreement and the other Transaction Documents (and all drafts thereof) in communications with third parties and otherwise;
provided that this Agreement may be disclosed to (a) third parties to the extent such disclosure is made pursuant to a written agreement of confidentiality in form and substance reasonably satisfactory to the Agent and (b) the
Seller’s legal counsel and auditors if they agree to hold it confidential. 
 Section 6.7. GOVERNING LAW AND
JURISDICTION. (a) THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF INDIANA (WITHOUT GIVING EFFECT TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF), AND THE OBLIGATIONS, RIGHTS AND
REMEDIES OF THE PARTIES UNDER THIS AGREEMENT SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS, EXCEPT TO THE EXTENT THAT THE PERFECTION (OR THE EFFECT OF PERFECTION OR NON-PERFECTION) OF THE INTERESTS OF THE PURCHASERS IN THE POOL RECEIVABLES AND
THE OTHER ITEMS DESCRIBED IN SECTION 1.2(d) IS GOVERNED BY THE LAWS OF A JURISDICTION OTHER THAN THE STATE OF INDIANA. 

(b) ANY LEGAL ACTION OR PROCEEDING WITH RESPECT TO THIS AGREEMENT MAY BE BROUGHT IN THE COURTS OF THE STATE OF ILLINOIS COOK COUNTY
AND CHICAGO OR NEW YORK NEW YORK COUNTY, NEW YORK CITY OR OF THE UNITED STATES FOR THE NORTHERN DISTRICT OF ILLINOIS OR THE SOUTHERN DISTRICT OF NEW YORK, AND BY EXECUTION AND DELIVERY OF THIS AGREEMENT, EACH OF THE PURCHASERS, THE SELLER, THE
SERVICER, THE PURCHASER AGENTS AND THE AGENT CONSENTS, FOR ITSELF AND IN RESPECT OF ITS PROPERTY, TO THE NON-EXCLUSIVE JURISDICTION OF THOSE COURTS. EACH OF THE PURCHASERS, THE SELLER, THE SERVICER, THE PURCHASER AGENTS AND THE AGENT IRREVOCABLY
WAIVES, TO THE MAXIMUM EXTENT PERMITTED BY LAW, ANY OBJECTION, INCLUDING ANY OBJECTION TO THE LAYING OF VENUE OR BASED ON THE GROUNDS OF FORUM NON CONVENIENS, WHICH IT MAY NOW OR HEREAFTER HAVE TO THE BRINGING OF ANY ACTION OR PROCEEDING IN
SUCH JURISDICTION IN RESPECT OF THIS AGREEMENT OR ANY DOCUMENT RELATED HERETO. 

  
 30 

 Section 6.8. Execution in Counterparts. This Agreement may be executed in any
number of counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together shall constitute one and the same agreement. 
 Section 6.9. Survival of Termination. The provisions of Sections 1.8, 1.10, 3.1, 3.2, 6.4, 6.5, 6.6, 6.7, 6.10 and 6.13
shall survive any termination of this Agreement. 
 Section 6.10. WAIVER OF JURY TRIAL. THE PURCHASERS, THE SELLER,
THE SERVICER, THE PURCHASER AGENTS, THE AGENT AND THE BACKUP SERVICER (BY ACCEPTING THE BENEFIT HEREOF) EACH WAIVE THEIR RESPECTIVE RIGHTS TO A TRIAL BY JURY OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF OR RELATED TO THIS AGREEMENT
OR THE TRANSACTIONS CONTEMPLATED HEREBY, IN ANY ACTION, PROCEEDING OR OTHER LITIGATION OF ANY TYPE BROUGHT BY ANY OF THE PARTIES AGAINST ANY OTHER PARTY OR PARTIES, WHETHER WITH RESPECT TO CONTRACT CLAIMS, TORT CLAIMS OR OTHERWISE. THE PURCHASERS,
THE SELLER, THE SERVICER, THE PURCHASER AGENTS, THE AGENT AND THE BACKUP SERVICER EACH AGREE THAT ANY SUCH CLAIM OR CAUSE OF ACTION SHALL BE TRIED BY A COURT TRIAL WITHOUT A JURY. WITHOUT LIMITING THE FOREGOING, EACH OF THE PARTIES HERETO FURTHER
AGREES THAT ITS RESPECTIVE RIGHT TO A TRIAL BY JURY IS WAIVED BY OPERATION OF THIS SECTION AS TO ANY ACTION, COUNTERCLAIM OR OTHER PROCEEDING WHICH SEEKS, IN WHOLE OR IN PART, TO CHALLENGE THE VALIDITY OR ENFORCEABILITY OF THIS AGREEMENT OR ANY
PROVISION HEREOF. THIS WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR MODIFICATIONS TO THIS AGREEMENT. 
 Section 6.11. Entire Agreement. This Agreement (together with the other Transaction Documents) embodies the entire agreement and understanding between the Purchasers, the Seller, the Servicer,
the Purchaser Agents and the Agent, and supersedes all prior or contemporaneous agreements and understandings of such Persons, verbal or written, relating to the subject matter hereof and thereof. 

Section 6.12. Headings. The captions and headings of this Agreement and in any Exhibit hereto are for convenience of
reference only and shall not affect the interpretation hereof or thereof. 
 Section 6.13. Liabilities of the
Purchasers. The obligations of each Purchaser under this Agreement are solely the corporate obligations of such Purchaser. No recourse shall be had for any obligation or claim arising out of or based upon this Agreement against any stockholder,
employee, officer, director or incorporator of any Purchaser; and provided, however, that this Section 6.13 shall not relieve any such Person of any liability it might otherwise have for its own gross negligence or willful
misconduct. The agreements provided in this Section 6.13 shall survive termination of this Agreement. 

  
 31 

 Section 6.14. Tax Treatment. The Participations shall be treated and reported as
indebtedness of the Seller for all income and franchise tax purposes. The Seller, the Servicer, the Agent and Fairway and each Purchaser, by its agreement to make a purchase (and to make reinvestments, if applicable) with regard to its
Participation, agrees, and shall cause its assignees to agree, to treat and report the Participations as indebtedness of the Seller for all income and franchise tax purposes. 

  
 32 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

			
	AFC FUNDING CORPORATION,
	as Seller
		
	By:	 	 /s/ James E. Money, II

	Name:	 	James E. Money, II
	Title:	 	Chief Financial Officer & Treasurer
	
	 13085 Hamilton Crossing Blvd., Suite 310
 Carmel, Indiana 46032

	Attention: Jim Money
	Telephone: 317-843-4756
	Facsimile: 317-815-8687
	E-mail: jmoney@autofinance.com
	
	 AUTOMOTIVE FINANCE CORPORATION,
 as Servicer

		
	By:	 	 /s/ James E. Money, II

	Name:	 	James E. Money, II
	Title:	 	Chief Financial Officer & Treasurer
	
	 13085 Hamilton Crossing Blvd., Suite 300
 Carmel, Indiana 46032

	Attention: Jim Money
	Telephone: 317-843-4756
	Facsimile: 317-815-8687
	E-mail: jmoney@autofinance.com

  

					
		 	S-1	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

 
			
	BMO CAPITAL MARKETS CORP.,
	as Agent and as Purchaser Agent for Fairway
		
	By:	 	 /s/ John Pappano

	Name:	 	John Pappano
	Title:	 	Managing Director
	
	BMO CAPITAL MARKETS CORP.
	115 S. LaSalle, 13th Floor West
	Chicago, Illinois 60603
	Attention: Conduit Administration
	E-mail: fundingdesk@bmo.com
	Telephone: (312) 461-5640
	Facsimile: (312) 293-4908
	
	FAIRWAY FINANCE COMPANY, LLC,
	as a Purchaser
		
	By:	 	 /s/ Lori Gebron

	Name:	 	Lori Gebron
	Title:	 	Vice President
	
	c/o Lord Securities Corp.
	48 Wall Street, 27th Floor
	New York, New York 10005
	Attention: Phillip Martone
	Email: pmartone@lordspv.com
	Telephone: (212) 346-9008
	Facsimile: (212) 346-9012
	
	Maximum Commitment:
	[*]

  

					
		 	S-2	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

 
			
	DEUTSCHE BANK AG, NEW YORK BRANCH,
	as Purchaser Agent for Monterey
		
	By:	 	 /s/ Robert Sheldon

	Name:	 	Robert Sheldon
	Title:	 	Managing Director
		
	By:	 	 /s/ Matt Bissonette

	Name:	 	Matt Bissonette
	Title:	 	Director
	
	 DEUTSCHE BANK AG, NEW YORK BRANCH
 60 Wall Street, 18th Floor

	New York, New York 10005
	E-mail: abs-conduits@list.db.com
	Telephone: (212) 250-0357
	Facsimile: (212) 797-5150
	
	MONTEREY FUNDING LLC,
	as a Purchaser
		
	By:	 	 /s/ Lori Gebron

	Name:	 	Lori Gebron
	Title:	 	Vice President
	
	 c/o Lord Securities Corp.
 48 Wall Street, 27th Floor
 New York, New York 10005

	
	Maximum Commitment:
	[*]

  

					
		 	S-3	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

 
			
	BARCLAYS BANK PLC,
	as Purchaser Agent for Salisbury
		
	By:	 	 /s/ Jamie Pratt

	Name:	 	Jamie Pratt
	Title:	 	Director
	
	 BARCLAYS BANK PLC

745 Seventh Avenue
 New York, New York
10019

	
	 SALISBURY RECEIVABLES COMPANY LLC,
 as a Purchaser

	
	By: Barclays Bank plc
		
	By:	 	 /s/ Chin-Yong Choe

	Name:	 	Chin-Yong Choe
	Title:	 	Vice President
	
	 Maximum Commitment:

[*]

		
	 c/o    
	 	 BARCLAYS BANK PLC
 745
Seventh Avenue
 New York, New York 10019

  

					
		 	S-4	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

 Acknowledged and Agreed: 
  

			
	KAR AUCTION SERVICES, INC.,
	as provider of the Performance Guaranty
		
	By:	 	 /s/ Eric M. Loughmiller

	Name:	 	Eric M. Loughmiller
	Title:	 	Executive Vice President & CFO

  

					
		 	S-5	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

					
	STATE OF INDIANA	  	)	    	
		  	)	    	SS
	COUNTY OF HAMILTON	  	)	    	

 Before me the undersigned, a Notary Public in and for the said County and State,
personally appeared James E. Money, II, an officer of AFC FUNDING CORPORATION, personally known to me who acknowledged the execution of the foregoing this 22nd day of April, 2011. 
  

					
	 /s/ Francesca C. York
	 		 	My Commission Expires: 12-5-16            
	Signature	 		 	
			
	 Francesca C. York
	 		 	My County of Residence: Hamilton            
	Printed Name	 		 	

  

					
	STATE OF INDIANA	  	)	    	
		  	)	    	SS
	COUNTY OF HAMILTON	  	)	    	

 Before me the undersigned, a Notary Public in and for the said County and State,
personally appeared James E. Money, II, an officer of AUTOMOTIVE FINANCE CORPORATION, personally known to me who acknowledged the execution of the foregoing this 22nd day of April, 2011. 
  

					
	 /s/ Francesca C. York
	 		 	My Commission Expires: 12-5-16            
	Signature	 		 	
			
	 Francesca C. York
	 		 	My County of Residence: Hamilton            
	Printed Name	 		 	

  

					
		 	S-6	 	 Fourth Amended and Restated
 Receivables Purchase Agreement

 EXHIBIT I 
 DEFINITIONS 
 As used in the Agreement (including its Exhibits), the following
terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined). Unless otherwise indicated, all Section, Annex, Exhibit and Schedule references in this Exhibit are to
Sections of and Annexes, Exhibits and Schedules to the Agreement. 
 “ADESA” means ADESA, Inc., a Delaware
corporation. 
 “Adverse Claim” means a lien, security interest or other charge or encumbrance, or any other
type of preferential arrangement, it being understood that a lien, security interest or other charge or encumbrance, or any other type of preferential arrangement, in favor of the Agent for the benefit of the Secured Parties contemplated by the
Agreement shall not constitute an Adverse Claim. 
 “AFC” has the meaning set forth in the preamble to this
Agreement. 
 “Affected Person” has the meaning set forth in Section 1.8. 

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, is in control of, is controlled by
or is under common control with such Person or is a director or officer of such Person, except that with respect to a Purchaser, Affiliate shall mean the holder(s) of its capital stock. 

“Agent” has the meaning set forth in the preamble to this Agreement. 

“Aggregate Participation” means, at any time, the sum of the Participations expressed as a percentage. 

“Agreement” has the meaning set forth in the preamble to this Agreement. 

“Applicable Margin” means [*]. 
 “Applicable Rental Receivables Advance Rate” means [*]; provided that such rate will be reduced at any time any Static Rental Receivables Pool Net Loss Rate that includes any
Receivable originated over [*]. 
 “Attorney Costs” means and includes all reasonable fees and reasonable
disbursements of any law firm or other external counsel, and all reasonable disbursements of internal counsel. 

“Backup Servicer” means the Person appointed to act as backup servicer pursuant to the Backup Servicing Agreement.

 “Backup Servicer Payment Date” means each Draw Date. 

  
 EX-I-1

 “Backup Servicing Agreement” means (i) the Backup Servicing Agreement,
dated as of January 19, 2011, among the Servicer, Wells Fargo Bank, National Association, the Agent and the other parties thereto; and (ii) any replacement backup servicing agreement entered into from time to time with the prior written
consent of the Majority Purchasers; in each case as such agreements may be amended, supplemented or otherwise modified from time to time in accordance with the terms hereof. 
 “Backup Servicing Fee Letter” means (i) the fee letter, dated October 20, 2010, setting forth the Backup Servicing Fees payable to the Backup Servicer; and (ii) any
replacement backup servicing fee letter entered into from time to time with the prior written consent of the Majority Purchasers; in each case as such letters may be amended, supplemented or otherwise modified from time to time in accordance with
the terms hereof. 
 “Backup Servicing Fees” means all fees and reimbursable expenses (excluding Transition
Expenses) payable to the Backup Servicer (for the avoidance of doubt, prior to Backup Servicer assuming the role of Servicer) pursuant to the Backup Servicing Agreement or the Backup Servicing Fee Letter. 

“Bank Rate” means, for any Purchaser for any Yield Period for any Portion of Investment, an interest rate per
annum equal to the Applicable Margin above the Eurodollar Rate for such Purchaser for such Yield Period; provided, that in the case of 
 (a) any Yield Period on or after the first day of which the applicable Purchaser Agent shall have been notified by a Liquidity Bank or the related Purchaser that the introduction of or any change in or in
the interpretation of any law or regulation makes it unlawful, or any central bank or other Governmental Authority asserts that it is unlawful, for such Liquidity Bank or such Purchaser to fund any Portion of Investment based on the Eurodollar Rate
set forth above (and such Liquidity Bank or such Purchaser, as applicable, shall not have subsequently notified such Purchaser Agent that such circumstances no longer exist), 

(b) any Yield Period of one to (and including) 13 days, or 

(c) any Yield Period as to which (i) the applicable Purchaser Agent does not receive notice, by no later than 12:00
noon (Chicago time) on (w) the second Business Day preceding the first day of such Yield Period that the Seller desires that the related Portion of Investment be funded at the CP Rate, or (x) the third Business Day preceding the first day
of such Yield Period that the Seller desires that the related Portion of Investment be funded at the Bank Rate, or (ii) the Seller has given the notice contemplated by clause (w) of this clause (c) and the applicable Purchaser Agent
shall have notified the Seller that funding the related Portion of Investment at the CP Rate is unacceptable to the applicable Purchaser, 
 the
“Bank Rate” for each such Yield Period shall be an interest rate per annum equal to the Base Rate in effect on each day of such Yield Period. Notwithstanding the foregoing, the “Bank Rate” for each day in a Yield Period
occurring during the continuance of a Termination Event shall be an interest rate equal to 2% per annum above the Base Rate in effect on such day. 

  
 EX-I-2

 “Bankruptcy Code” means the United States Bankruptcy Reform Act of 1978
(11U.S.C. § 101, et seq.), as amended and in effect from time to time. 
 “Base Rate” means,
for any Purchaser for any day, a fluctuating interest rate per annum equal to the higher of: (a) the rate of interest most recently announced by the applicable Reference Bank as its prime commercial rate for loans made in Dollars in the United
States or (b) 0.50% per annum above the latest Federal Funds Rate. The rate referred to in clause (a) is not necessarily intended to be the lowest rate of interest determined by the applicable Reference Bank in
connection with extensions of credit. 
 “Business Day” means any day on which (i) (A) the Agent at
its branch office in Chicago, Illinois is open for business and (B) commercial banks in New York City are not authorized or required to be closed for business, and (ii) if this definition of “Business Day” is utilized in
connection with the Eurodollar Rate, dealings are carried out in the London interbank market. 
 “Buyer’s
Fees” means the fees paid by an Obligor to the auction in connection with a purchase of a vehicle by such dealer. 

“Carry Costs” means, with respect to any calendar month, the sum of the amounts of the following items that accrued or
were incurred during such calendar month: (a) all Discount, (b) the Program Fee, (c) the Servicing Fee, (d) the Backup Servicing Fee and (e) all other expenses and fees of the Seller under the Agreement. 

“Cash Reserve” means (i) at any time after the occurrence and during the continuation of a Level One Trigger, [*]
of the aggregate Investment at such time and (ii) at any other time, an amount equal to [*] of the aggregate Investment at such time. 
 “Cash Reserve Account” means that certain bank account numbered 181-445-8 maintained at Harris Trust and Savings Bank in the name of “Cash Reserve Account, BMO Capital Markets
Corp. as Agent,” and maintained for the benefit of the Secured Parties. 
 “Cash Reserve Account Bank”
means the bank holding the Cash Reserve Account. 
 “Change in Control” means 

(a) AFC shall fail to own, free and clear of all Adverse Claims, 100% of the outstanding shares of voting stock of the
Seller, except as otherwise provided by the Pledge Agreement; or 
 (b) KAR shall fail to own, directly or
indirectly, free and clear of all Adverse Claims (other than the KAR Credit Facility Pledge), at least 80% of the outstanding shares of voting stock of AFC, on a fully diluted basis. 

  
 EX-I-3

 “Collection Accounts” means, collectively, the Deposit Accounts held at
[*]. 
 “Collections” means, with respect to any Pool Receivable, (a) all funds which are received by the
Seller, the Originator or the Servicer (including amounts paid directly to an Originating Lender and subsequently forwarded to the Seller, the Originator or the Servicer) in payment of any amounts owed in respect of such Receivable (including,
without limitation, principal payments, finance charges, floorplan fees, curtailment fees, interest and all other charges), or applied (or to be applied) to amounts owed in respect of such Receivable (including, without limitation, insurance
payments and net proceeds of the sale or other disposition of vehicles or other collateral or property of the related Obligor or any other Person directly or indirectly liable for the payment of such Pool Receivable applied (or to be applied)
thereto), (b) all Collections deemed to have been received pursuant to Section 1.9 and (c) all other proceeds of such Receivable. 
 “Company Note” has the meaning set forth in Section 3.2 of the Purchase and Sale Agreement. 
 “Contract” means, with respect to any Obligor, collectively, the Dealer Note issued by such Obligor, or similar agreement between such Obligor and AFC or an Originating Lender, as
applicable, any guaranty issued in connection therewith and each other agreement or instrument executed by an Obligor pursuant to or in connection with any of the foregoing, the purpose of which is to evidence, secure or support such Obligor’s
obligations to AFC or each Originating Lender, as applicable, under such Dealer Note or other similar agreement. 
 “CP
Rate” means, for any Purchaser for any Yield Period for any Portion of Investment, to the extent such Purchaser funds such Portion of Investment for such Yield Period by the issuance of Notes, (a) a rate per annum equal
to the sum of (i) the rate (or if more than one rate, the weighted average of the rates) at which Notes of such Purchaser (or its Related CP Issuer) having a term equal to such Yield Period and to be issued to fund such Portion of Investment
may be sold by any placement agent or commercial paper dealer selected by the applicable Purchaser Agent on behalf of such Purchaser (or its Related CP Issuer), as agreed between each such agent or dealer and the applicable Purchaser Agent and
notified by the applicable Purchaser Agent to the Servicer; provided, that if the rate (or rates) as agreed between any such agent or dealer and the applicable Purchaser Agent with regard to any Yield Period for such Portion of Investment is
a discount rate (or rates), then such rate shall be the rate (or if more than one rate, the weighted average of the rates) resulting from converting such discount rate (or rates) to an interest-bearing equivalent rate per annum, plus (ii) the
commissions and charges charged by such placement agent or commercial paper dealer with respect to such Notes, expressed as a percentage of such face amount and converted to an interest-bearing equivalent rate per annum; or
(b) such other rate set forth in the Joinder Agreement pursuant to which such Purchaser becomes a party to the Agreement. Notwithstanding anything to the contrary in this definition, to the extent that any Portion of the Investment is funded by
issuing Notes denominated in a currency other than United States dollars, the costs of any currency exchange contracts entered into in connection with such issuance of Notes shall be included in the rate determined hereunder and the interest rate
(or, if any component of such rate is a discount rate, the rate resulting from converting such discount rate to an interest rate bearing equivalent rate per annum for such component) with respect to such Notes may be calculated with reference to

  
 EX-I-4

 
the amounts received and payable by the Purchaser, or Related CP Issuer, under currency exchange contracts entered into in connection with the issuance of such Notes; provided,
however, that any such costs shall only be included in the calculation of “CP Rate” to the extent that the issuance of such Notes in a currency other than U.S. dollars would result (as reasonably determined by the applicable
Purchaser Agent at the time the applicable Purchaser, or its Related CP Issuer, became obligated under the related currency exchange contracts) in a lower “CP Rate” than would have been obtained through the issuance of such Notes in U.S.
dollars. 
 “Credit and Collection Policy” means those receivables credit and collection policies and practices
of the Servicer in effect on the date of the Agreement and described in Schedule I hereto, as modified in compliance with the Agreement. 
 “Curtailment Date” means, with respect to any Receivable, the date defined as such in the Contract for such Receivable. 

“Dealer Note” means a Demand Promissory Note and Security Agreement and any other promissory note issued by an Obligor
in favor of AFC or the applicable Originating Lender. 
 “Debt” means (i) indebtedness for borrowed money
(which shall not include, in the case of the Seller or AFC, accounts payable to any Affiliate in the ordinary course of business arising from the provision of goods and services by such Affiliate), (ii) obligations evidenced by bonds,
debentures, notes or other similar instruments, (iii) obligations to pay the deferred purchase price of property or services, (iv) obligations as lessee under leases which shall have been or should be, in accordance with generally accepted
accounting principles, recorded as capital leases, (v) obligations under direct or indirect guaranties in respect of, and obligations (contingent or otherwise) to purchase or otherwise acquire, or otherwise to assure a creditor against loss in
respect of, indebtedness or obligations of others of kinds referred to in clauses (i) through (iv) above, and (vi) liabilities in respect of unfunded vested benefits under plans covered by Title IV of ERISA. 

“Default Ratio” means the ratio (expressed as a percentage and rounded upward to the nearest 1/100th of 1%) computed as
of the last day of each calendar month by dividing (i) the aggregate Outstanding Balance of all Pool Receivables that became Defaulted Receivables during such month plus the aggregate amount of non-cash adjustments that reduced the
Outstanding Balance of any Pool Receivable during such month (other than a Pool Receivable that became a Defaulted Receivable during such month) by (ii) the aggregate amount of Pool Receivables that were generated by the Originator (including
those acquired by the Originator from any Originating Lender) during the calendar month that occurred five calendar months prior to the calendar month ending on such day. 
 “Defaulted Receivable” means a Pool Receivable: 

(i) as to which any payment, or part thereof, remains unpaid for more than [*] after the due date for such payment;

 (ii) which, consistent with the Credit and Collection Policy, would be written off the Seller’s books as
uncollectible; or 

  
 EX-I-5

 (iii) which is converted to a long term payment plan in the form of a note
or other similar document. 
 “Delinquency Ratio” means the ratio (expressed as a percentage and rounded upward
to the nearest 1/100 of 1%) computed as of the last day of each calendar month by dividing (i) the aggregate Outstanding Balance of all Pool Receivables (net of all miscellaneous credits) that were Delinquent Receivables on such day by
(ii) the aggregate Outstanding Balance of all Pool Receivables on such day. 
 “Delinquent Receivable”
means a Pool Receivable which is not a Defaulted Receivable (i) as to which any payment, or part thereof, remains unpaid for more than [*] after the due date for such payment or (ii) which, consistent with the Credit and Collection Policy,
would be classified as delinquent by the Seller. 
 “Deposit Account” means an account listed on Schedule
II hereto and maintained at a bank or other financial institution for the purpose of receiving Collections. 

“Deposit Account Agreement” means a letter agreement, in form and substance acceptable to the Agent, among the Seller,
the Agent and the applicable Deposit Account Bank, as the same may be amended, supplemented, amended and restated, or otherwise modified from time to time in accordance with the Agreement. 

“Deposit Bank” means any of the banks or other financial institutions at which one or more Deposit Accounts are
maintained. 
 “Discount” means, with respect to each Purchaser: 

[*]. 
 “Dividends” means any dividend or distribution (in cash or obligations) on any shares of any class of Seller’s capital stock or any warrants, options or other rights with respect to
shares of any class of Seller’s capital stock. 
 “Draw Date” means the 20th day of each calendar month or, if such day is not a Business Day,
the following Business Day. 
 “Eligible Contract” means a Contract in one of the forms set forth in
Schedule IV with such variations as AFC shall approve in its reasonable business judgment that shall not materially adversely affect the rights of the Originator or the Originating Lender, the Seller or the Purchasers. 

“Eligible Receivable” means, at any time, any Receivable: 

[*]. 

“Enforcement Costs” means, at any time, all unpaid costs and expenses incurred by the Agent in enforcing its rights and
the rights of the other Indemnified Parties hereunder. 

  
 EX-I-6

 “ERISA” means the Employee Retirement Income Security Act of 1974, as
amended from time to time, and any successor statute of similar import, together with the regulations thereunder, in each case as in effect from time to time. References to sections of ERISA also refer to any successor sections. 

“ERISA Affiliate” shall mean, with respect to any Person, at any time, each trade or business (whether or not
incorporated) that would, at the time, be treated together with such Person as a single employer under Section 4001 of ERISA or Sections 414(b), (c), (m) or (o) of the Internal Revenue Code. 

“Eurodollar Rate” means, for any Portion of the Investment for any Yield Period, an interest rate per annum (rounded
upward to the nearest 1/16th of 1%) determined pursuant to the following formula: 
  

					
	Eurodollar Rate =	  	 LIBOR
	  	
		  	1.00 - Eurodollar Reserve Percentage	  	

 Where, 
 “Eurodollar Reserve Percentage” means, for any Yield Period, the maximum reserve percentage (expressed as a decimal, rounded upward to the nearest 1/100th of 1%) in effect on the date
LIBOR for such Yield Period is determined under regulations issued from time to time by the Federal Reserve Board for determining the maximum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with
respect to “Eurocurrency” funding (currently referred to as “Eurocurrency liabilities”) having a term comparable to such Yield Period. 
 “Excluded Obligor” means an Obligor so designated in writing as such by the Agent or the Majority Purchasers in a notice to the Seller in good faith and in the Agent’s or the
Majority Purchasers’ reasonable judgment relating to credit considerations from time to time, it being understood that from time to time such designation may be revoked by written notice to the Seller. 

“Excluded Receivables” means any right to payment under: 

[*]. 

“Extended Curtailment Receivable” means [*]. 
 “Fairway” has the meaning set forth in the preamble to this Agreement. 
 “Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal (for each day during such period) to: (a) the weighted average of the rates on overnight
federal funds transactions with members of the Federal Reserve System arranged by federal funds brokers, as published for such day (or, if such day is not a Business Day, for the preceding Business Day) by the Federal Reserve Bank of New York, or
(b) if such rate is not so published for any Business Day, the average of the quotations for such day on such transactions received by the Agent from three federal funds brokers of recognized standing selected by it. 

  
 EX-I-7

 “Federal Reserve Board” means the Board of Governors of the Federal Reserve
System, or any entity succeeding to any of its principal functions. 
 “Fee Letter” means, as to any Purchaser,
the fee letter entered into by such Purchaser’s Purchaser Agent and the Seller as described more particularly in Section 1.5. 
 “Fee Payment Date” means each Draw Date. 
 “Final Payout
Date” means the date following the Termination Date on which no Investment or Discount in respect of any Participation under the Agreement shall be outstanding and all other amounts payable by the Originator, the Seller or the Servicer to
the Purchasers, the Purchaser Agents, the Agent, the Backup Servicer, any successor Servicer or any other Affected Person under the Transaction Documents shall have been paid in full. 

“Finance Charge and Floorplan Fee Collections” means, with respect to any calendar month, any Collections applied by the
Servicer in such calendar month to the payment of interest and finance charges and all other amounts (other than principal) owed under a Contract. 
 “GAAP” means generally accepted accounting principles and practices in the United States, consistently applied. 
 “Governmental Authority” means any nation or government, any state or other political subdivision thereof, any central bank (or similar monetary or regulatory authority) thereof, any body
or entity exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government, including without limitation any court, and any Person owned or controlled, through stock or capital ownership or
otherwise, by any of the foregoing. 
 “Heavy Duty Truck” means [*]. 

“Holdings” means KAR Holdings II, LLC, a Delaware limited liability company. 

“Indemnified Amounts” has the meaning set forth in Section 3.1. 

“Indemnified Party” has the meaning set forth in Section 3.1. 

“Insolvent” or “Insolvency” means, with respect to any Multiemployer Plan, the condition that such Plan
is insolvent within the meaning of Section 4245 of ERISA. 
 “Insolvency Proceeding” means (a) any
case, action or proceeding before any court or other Governmental Authority relating to bankruptcy, reorganization, insolvency, liquidation, receivership, dissolution, winding-up or relief of debtors, or (b) any general assignment for the
benefit of creditors, composition, marshalling of assets for creditors, or other, similar arrangement in respect of its creditors generally or any substantial portion of its creditors; in each case (a) and (b) undertaken under U.S.
Federal, state or foreign law, including the Bankruptcy Code. 

  
 EX-I-8

 “Investment” means, with respect to any Purchaser, the aggregate of the
amounts paid to the Seller in respect of the Participation of such Purchaser pursuant to the Agreement, or such amount divided or combined in accordance with Section 1.7, in each case reduced from time to time by amounts actually
distributed and applied on account of such Investment pursuant to Section 1.4; provided, that if such Investment shall have been reduced by any distribution and thereafter all or a portion of such distribution is rescinded
or must otherwise be returned for any reason, such Investment shall be increased by the amount of such rescinded or returned distribution, as though it had not been made. 
 “Joinder Agreement” means a Joinder Agreement substantially in the form of Annex C and executed pursuant to Section 1.12. 

“KAR” means KAR Auction Services, Inc., a Delaware corporation. 

“KAR Credit Facility” means that certain Credit Agreement, dated as of April 20, 2007 among KAR Holdings II, LLC,
KAR Auction Services, Inc., as Borrower, the secured lenders from time to time party thereto, JPMorgan Chase Bank, N.A., as Successor Administrative Agent, UBS Securities LLC, as Syndication Agent and the other parties thereto, as the same may be
amended, supplemented or otherwise modified from time to time. 
 “KAR Credit Facility Pledge” means the pledge
of AFC stock to secure the obligations under the KAR Credit Facility. 
 “KAR Financial Covenant” means the
financial covenant regarding KAR’s maximum consolidated senior secured leverage ratio as set forth in Section 8.1(a) of the KAR Credit Facility on the date of execution thereof. Such covenant (including all defined terms incorporated
therein) will survive the termination of the KAR Credit Facility and can only be amended, modified, added or terminated from time to time with the prior written consent of the Majority Purchasers; provided, however, that as long as
KAR’s senior secured debt shall be rated at least “BBB- (stable)” by S&P and at least “Baa3 (stable)” by Moody’s, the financial covenant will conform with the financial covenants required by KAR’s Credit
Facility or any replacement facility without the consent of the Majority Purchasers. 
 “KAR Financial Covenant
Event” means any breach of the KAR Financial Covenant that is not cured pursuant to the cure right as set forth in Section 8.1 (b) of the KAR Credit Facility. 

“KAR Financial Covenant Termination Event” means, following the occurrence of a KAR Financial Covenant Event, the
earliest to occur of [*]. 
 “KAR Restricted Amendment” means any action under or amendment to the KAR Credit
Facility [*]. 
 “Legal Final Maturity Date” means the first Settlement Date on or after the date that is two
years after the Termination Date. 
 “Level One Trigger” means [*]. 

  
 EX-I-9

 “LIBOR” means, with respect to each Purchaser’s Portion(s) of
Investment, the rate of interest per annum (rounded to the nearest 1/100th of 1%, with 0.005% being rounded upwards) equal to the rate of interest per annum: (i) for deposits in Dollars (in the approximate amount of the Investment
to be funded) for a period equal to the applicable Yield Period that appears on Telerate Page 3750 or (ii) if such rate does not appear on Telerate Page 3750, determined by the Agent to be the arithmetic mean (rounded to the nearest 1/100th of
1%, with 0.005% being rounded upwards) of the rates of interest per annum notified to the Agent as the rate of interest at which Dollar deposits in the approximate amount of the Investment to be funded, and for a period equal to the
applicable Yield Period, would be offered to major banks in the London interbank market at their request, in each case at or about 11:00 a.m. (London time) on the second Business Day before such funding. For the purposes of calculating LIBOR for any
(a) Yield Period of 30 days or less shall be equal to LIBOR for 30 days as of the first day of such Yield Period and (b) Yield Period greater than 30 days shall be equal to an interpolated rate as determined by the Agent based on LIBOR for
30 to 90 days, as applicable, as of the first day of such Yield Period. 
 “Liquidation Account” means that
certain bank account numbered 181-446-6 maintained at Harris Trust and Savings Bank in Chicago, Illinois or such other account at such other bank approved by the Agent, with the Purchasers and their respective Purchaser Agents receiving notice that
such account is maintained at such bank, in either case, which is in the name of “Liquidation Account, BMO Capital Markets Corp as Agent,” and pledged, on a first-priority basis, by the Seller to the Agent pursuant to
Section 1.2(d). 
 “Liquidation Account Bank” means the bank holding the Liquidation Account.

 “Liquidity Agent” means any financial institution in its capacity as a Liquidity Agent pursuant to a
Liquidity Agreement. 
 “Liquidity Agreement” means any loan or asset purchase agreement or similar agreement
whereby a Note Issuer party hereto as a Purchaser obtains commitments from financial institutions to support its funding obligations hereunder and/or to refinance any Notes issued to fund the Note Issuer’s Investment hereunder. 

“Liquidity Bank” has the meaning set forth in Section 6.3(b). 

“Loss Percentage” means, [*]. 
 “Loss Reserve” means, [*]. 
 “Lot Check” means,
with respect to any Obligor, a physical inspection of such Obligor’s financed vehicles and which may include a review of such Obligor’s books and records related thereto. 

“Majority Purchasers” means Purchasers [*]. 
 “Majority Purchasers Notice Event” means, following the occurrence of [*]. 

  
 EX-I-10

 “Material Adverse Effect” means, with respect to any event or circumstance,
a material adverse effect on: 
 (a) the business, operations, property or financial condition of the Seller or
the Servicer; 
 (b) the ability of the Seller or the Servicer to perform its obligations under this Agreement or
any other Transaction Document to which it is a party or the performance of any such obligations; 
 (c) the
validity or enforceability of this Agreement or any other Transaction Document; 
 (d) the status, existence,
perfection, priority or enforceability of the Agent’s interest (for the benefit of the Secured Parties) in the Pool Receivables or Related Security; or 
 (e) the collectibility of the Pool Receivables. 
 “Maximum
Amount” means the lesser of (i) $650,000,000 or (ii) the sum of the Maximum Commitments of all Purchasers. 

“Maximum Commitment” means, with respect to a Purchaser, the maximum dollar amount of Investment that such Purchaser is
willing to fund, as set forth on the signature pages of this Agreement, any Joinder Agreement or any assignment entered into pursuant to Section 6.3, as applicable, which amount may, following the written request of the Seller, be
increased at any time with the written consent of such Purchaser. 
 “Moody’s” means Moody’s Investor
Services, Inc. 
 “Motorcycle” means [*]. 

“Multiemployer Plan” means a Plan that is a multiemployer plan as defined in Section 4001(a)(3) of ERISA.

 “Net Receivables Pool Balance” means, at any time, the amount determined pursuant to the calculation in
Schedule III. 
 “Net Spread” means the annualized percentage equivalent of a fraction (computed as of
the last day of each calendar month), the numerator of which is the excess of (x) all Finance Charge and Floorplan Fee Collections received and applied during such calendar month (including recoveries) over (y) the sum of, without
duplication, (i) the Carry Costs for such calendar month, (ii) the aggregate amount of Receivables that became Defaulted Receivables during such calendar month, and (iii) the aggregate amount of non-cash adjustments that reduced the
Outstanding Balance of any Pool Receivable during such calendar month (but excluding any Receivable that was included in the calculation of Net Spread pursuant to clause (ii) above in any previous calendar month); and the denominator of
which is the average aggregate Outstanding Balances of the Pool Receivables during such calendar month. 

  
 EX-I-11

 “New Car” means [*]. 

“Non-Revolving Purchaser” means each Purchaser designated as a “Non-Revolving Purchaser” in the Joinder
Agreement or amendment pursuant to which such Purchaser becomes a party hereto. 
 “Normal Concentration
Percentage” for any Obligor (other than Obligors subject to Special Concentration Percentages) means at any time [*]. 

“Note Issuer” means Fairway and any other Purchaser which funds its Investment and other investments by issuing short or
medium term promissory notes either directly or by means of a Related CP Issuer. 
 “Notes” means (a) in
the case of Fairway or other Purchaser, the short-term promissory notes issued or to be issued by Fairway or such Purchaser to fund its investments in accounts receivable or other financial assets, (b) in the case of any Purchaser with a
Related CP Issuer, the short-term promissory notes issued by its Related CP Issuer to indirectly fund the investments of such Purchaser, and (c) in the case of any other Purchaser, as set forth in the applicable Joinder Agreement. 

“Obligor” means, with respect to any Receivable, a Person obligated to make payments pursuant to the Contract relating
to such Receivable; provided that Receivables generated by Affiliates of any Obligor shall be treated as if generated by such Obligor. 
 “Official Body” means any government or political subdivision or any agency, authority, bureau, central bank, commission, department or instrumentality of any such government or political
subdivision, or any court, tribunal, grand jury or arbitrator, or any accounting board or authority (whether or not a part of government) which is responsible for the establishment or interpretation of national or international accounting
principles, in each case whether foreign or domestic. 
 “Originating Lender” means AFC Cal, LLC, a California
limited liability company and each other entity approved in writing by the Purchaser Agents as an Originating Lender hereunder in their sole discretion. 
 “Originating Lender Sale Agreement” means each transfer agreement between an Originating Lender and the Originator; prior to the Receivables of any Originating Lender being treated as
Eligible Receivables hereunder, the Majority Purchasers shall have consented to the form of Originating Lender Sale Agreement and each Rating Agency shall have received a copy thereof at least 5 Business Days prior to such Receivables receiving such
treatment. 
 “Originator” has the meaning set forth in the Purchase and Sale Agreement. 

“Outstanding Balance” means, with respect to any Receivable, [*]. 

“Participation” means, with respect to any Purchaser at any time, the undivided percentage ownership interest of such
Purchaser in (i) each and every Pool Receivable now existing or hereafter arising, other than any Pool Receivable that arises on or after the 

  
 EX-I-12

 
Termination Date, (ii) all of Seller’s right, title and interest in, to and under all Related Security with respect to such Pool Receivables, and (iii) all Collections with respect
to, and other proceeds of, such Pool Receivables and Related Security. Such undivided percentage interest shall be computed as 
  

					
	I + LR        	 		 	
	NRPB + LA	 		 	

 where: 
  

					
	I	 	=	    	the Investment of such Participation at the time of computation as reduced by the amount of cash in the [*] at the end of business on either (i) with respect to any Servicer
Report, the last Business Day of the prior calendar month, or (ii) with respect to any Portfolio Certificate, the last Business Day of the prior calendar week, in each case that was wired to the respective Purchaser on the immediately following
Business Day to pay down that Purchaser’s Investment.
			
	LR	 	=	    	the Loss Reserve of such Participation at the time of computation (calculated after reducing the Purchaser’s Investment by the amount of cash in the [*] at the end of
business on either (i) with respect to any Servicer Report, the last Business Day of the prior calendar month, or (ii) with respect to any Portfolio Certificate, the last Business Day of the prior calendar week, in each case that was wired to the
respective Purchaser on the second immediately following Business Day to pay down that Purchaser’s Investment).
			
	NRPB	 	=	    	the Net Receivables Pool Balance at the time of computation.
			
	LA	 	=	    	the amount on deposit in the Liquidation Account (other than amounts transferred thereto from the Deposit Accounts to pay Discount, the Servicing Fee, Unaffiliated Servicing
Fees, Backup Servicing Fees, Transition Expenses and Program Fees and Indemnified Amounts to the Indemnified Parties), and, for the avoidance of doubt, those amounts identified as “cash collateral” with respect to the Deposit Account held
at [*] (numbered [*]) shall not be deposited into the Liquidation Account or taken into consideration for the calculation of the Participation.

 Each Participation shall be determined from time to time pursuant to the provisions of Section 1.3.

 “Paydown Day” means any day that is not a Termination Day on which the conditions set forth in
Section 3 of Exhibit II are not either satisfied or waived. 
 “Payment Rate” means [*].

  
 EX-I-13

 “Perfection Representation” means the representations, warranties and
covenants set forth in Exhibit VII attached hereto. 
 “Performance Guaranty” means the Performance
Guaranty, dated as of April 20, 2007, made by KAR in favor of the Agent for the benefit of the Secured Parties, as the same may be amended, supplemented or otherwise modified from time to time with the prior written consent of the Majority
Purchasers. 
 “Permitted Investments” means (i) overnight obligations of the United States of America,
(ii) time deposits or AAAm or AAAm-G rated money market accounts maintained at [*] or if [*] is rated below A-1 by S&P or P-1 by Moody’s such other financial institutions rated at the time of investment not less than A-1+ by S&P
and P-1 by Moody’s, (iii) certificates of deposit that are not represented by instruments, have a maturity of one week or less and are issued by financial institutions rated at the time of investment not less than A-1 by S&P and P-1 by
Moody’s if such certificates of deposit are issued by [*] or A-1+ by S&P and P-1 by Moody’s if such certificates of deposit are issued by financial institutions other than [*] and (iv) commercial paper rated at the time of
investment not less than A-1 by S&P and P-1 by Moody’s if such commercial paper is issued by Fairway or A-1+ by S&P and P-1 by Moody’s if such commercial paper is issued by an entity other than Fairway and, in the cases of clauses
(ii), (iii) and (iv), having a maturity date not later than (A) with respect to amounts on deposit in the Cash Reserve Account, the immediately succeeding Draw Date and (B) with respect to amounts on deposit in the Liquidation
Account, the earlier of (x) the next Settlement Date and (y) one week from the date of investment; provided, however, that the Majority Purchasers may, from time to time, upon three Business Days’ prior written notice to
Servicer, remove from the scope of “Permitted Investments” any such obligations, certificates of deposit or commercial paper and specify to be within such scope, other investments. 

“Permitted Lien” means (i) any mechanic’s lien, supplier’s lien, materialman’s lien, landlord’s
lien or similar lien arising by operation of law with respect to the Related Security and (ii) and liens for taxes, assessments or similar governmental charges or levies incurred in the ordinary course of business that are not yet due and
payable or as to which any applicable grace period shall not have expired, or that are being contested in good faith by proper proceedings and for which adequate reserves have been established, but only so long as foreclosure with respect to such a
lien is not imminent and the use and value of the property to which the Adverse Claim attaches is not impaired during the pendency of such proceeding. 
 “Person” means an individual, partnership, corporation (including a business trust), joint stock company, trust, unincorporated association, joint venture, limited liability company or
other entity, or a government or any political subdivision or agency thereof. 
 “Plan” means, at a particular
time, any employee benefit plan or other plan established, maintained or contributed to by the Seller or any ERISA Affiliate thereof that is covered by Title IV of ERISA. 
 “Pledge Agreement” means the Pledge Agreement dated May 31, 2002 between AFC and the Agent, as the same may be amended or modified with the prior written consent of the Majority
Purchasers. 

  
 EX-I-14

 “Pool Receivable” means a Receivable conveyed to the Seller pursuant to the
Purchase and Sale Agreement and not reconveyed to the Originator in accordance with the terms of the Purchase and Sale Agreement. 
 “Pool Receivable Documents” has the meaning set forth in paragraph (l)(iii) of Exhibit IV to the Agreement. 

“Portfolio Certificate” means a certificate substantially in the form of Exhibit VI to the Agreement.

 “Portion of Investment” has the meaning set forth in Section 1.7. In addition, at any time when
the Investment of a Participation is not divided into two or more portions, “Portion of Investment” means 100% of the Investment of such Participation. For any Yield Period, the “related” Portion of Investment means the Portion
of Investment of any Purchaser accruing Discount during such Yield Period at a particular Discount rate. For any Yield Period End Date, the “related” Portion of Investment means the Portion of Investment of any Purchaser which has a Yield
Period ending on such Yield Period End Date. 
 “Prior Agreement” has the meaning set forth in the Preliminary
Statements. 
 “Program Fee” means, as to any Purchaser, the periodic fees set forth in the applicable Fee
Letter. 
 “Program Support Agreement” means, as to any applicable Note Issuer party hereto as a Purchaser, the
Liquidity Agreement and any other agreement (if any) entered into by any Program Support Provider providing for the issuance of one or more letters of credit for the account of the Purchaser, the issuance of one or more surety bonds for which the
Purchaser is obligated to reimburse the applicable Program Support Provider for any drawings thereunder, the sale by the Purchaser to any Program Support Provider of the Participation (or portions thereof) and/or the making of loans and/or other
extensions of credit to the Purchaser in connection with the Purchaser’s securitization program, together with any letter of credit, surety bond or other instrument issued thereunder. 

“Program Support Provider” as to any Note Issuer (and/or Related CP Issuers) means and includes any Liquidity Bank and
any other or additional Person (other than any customer of a Purchaser (and/or Related CP Issuers)) now or hereafter extending credit or having a commitment to extend credit to or for the account of, or to make purchases from, a Purchaser (and/or
Related CP Issuers) or issuing a letter of credit, surety bond or other instrument to support any obligations arising under or in connection with any Note Issuer’s (and/or Related CP Issuer’s) securitization program. 

“Pro Rata Share” means, with respect to any Purchaser at any time, a fraction, the numerator of which is the sum of the
unused portion of such Purchaser’s Maximum Commitment at such time and the denominator of which is the unused portion of the Maximum Amount at such time. 
 “Purchase and Sale Agreement” means the Amended and Restated Purchase and Sale Agreement, dated as of May 31, 2002, among the Originator and the Seller, as the same has

  
 EX-I-15

 
been and may be modified, supplemented, amended and amended and restated from time to time in accordance with the Transaction Documents and with prior written consent of the Majority Purchasers.

 “Purchaser” means Fairway, Monterey, Salisbury, and each other Person which becomes a “Purchaser”
hereunder in accordance with the provisions of Section 1.12 or Section 6.3(a). 
 “Purchaser
Agent” means, as to any Purchaser, the financial institution designated by such Purchaser as responsible for administering this Agreement on behalf of such Purchaser, together with any successors or permitted assigns acting in such
capacity; if any Purchaser does not so designate another institution as its Purchaser Agent, such Purchaser shall be deemed to have designated itself as its Purchaser Agent and all references herein to such Purchaser’s Purchaser Agent shall
mean and be references to such Purchaser. 
 “Purchaser Percentage” means, with respect to any Purchaser at any
time, a fraction (expressed as a percentage), the numerator of which is such Purchaser’s Investment at such time, and the denominator of which is the aggregate Investment of all Purchasers at such time. 

“Purchaser’s Account” means (i) as to Fairway, the special account (account number [*] maintained at the
office of Harris Trust and Savings Bank, or such other account as may be so designated in writing by its Purchaser Agent to the Seller and (ii) as to any other Purchaser, such account as may be so designated in writing by the applicable
Purchaser Agent to the Seller and the Servicer. 
 “Purchasers’ Share” means the share of Collections
deposited into the Deposit Accounts represented by the Aggregate Participation. 
 “Rating Agencies” means
Moody’s and S&P. 
 “Receivable” means any right to payment from any Person, whether constituting an
account, chattel paper, instrument, payment intangible or a general intangible, arising from the providing of financing and other services by the Originator or the applicable Originating Lender to new, used and wholesale automobile or other motor
vehicle, Recreational Vehicle or Salvage Vehicle dealers, and includes the right to payment of any interest or finance charges and other obligations of such Person with respect thereto. 

“Recreational Vehicle” means [*]. 
 “Recreational Vehicle Receivable” means those Receivables generated as a result of the making of loans to finance the purchase of Recreational Vehicles. 

“Reference Bank” means [*], provided that if so agreed by the Seller, the Servicer and the Agent, each Purchaser
which becomes a party hereto by virtue of Section 1.12 may designate a different Reference Bank for purposes of calculating the Base Rate applicable to such Purchaser’s Investment. 

  
 EX-I-16

 “Related CP Issuer” shall mean, with respect to any Purchaser, any
commercial paper conduit approved by the Servicer which advances funds to such Purchaser for the purpose of funding or maintaining its interest in the Investment, together with their successors and permitted assigns. 

“Related Security” means, with respect to any Pool Receivable: 

(a) all right, title and interest in and to all Contracts and other Pool Receivable Documents that relate to such
Receivable; 
 (b) all security interests or liens and rights in property subject thereto from time to time
purporting to secure payment of such Receivable, whether pursuant to the Contract related to such Receivable or otherwise, including all rights in vehicles securing or purporting to secure such payment and any insurance or other proceeds arising
therefrom; 
 (c) all UCC financing statements covering any collateral securing payment of such Receivable;

 (d) all guarantees and other agreements or arrangements of whatever character from time to time supporting or
securing payment of such Receivable whether pursuant to the Contract related to such Receivable or otherwise; 

(e) all rights in any power of attorney delivered by the related Obligor; and 

(f) all rights and claims of the Seller with respect to such Receivable pursuant to the Purchase and Sale Agreement.

 “Rental Receivable” means a Receivable which satisfies all of the requirements of the definition of Eligible
Receivable except clause [*]. 
 “Reorganization” means, with respect to any Multiemployer Plan, the condition
that such plan is in reorganization within the meaning of Section 4241 of ERISA. 
 “Reportable Event”
means any of the events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived under subsections .22, .27 or .28 of PBGC Reg. §4043. 

“Restricted Payments” has the meaning set forth in paragraph (o)(i) of Exhibit IV of the
Agreement. 
 “Salvage Vehicle” means [*]. 

“S&P” means Standard and Poor’s Ratings Services. 

“Secured Parties” means, collectively, the Purchasers, the Purchaser Agents, the Agent and the Program Support
Providers. 

  
 EX-I-17

 “Seller” has the meaning set forth in the preamble to this Agreement.

 “Seller’s Share” means the Seller’s share of Collections deposited into the Deposit Accounts,
calculated as 100% minus the Aggregate Participation. 
 “Servicer” has the meaning set forth in the preamble
to this Agreement. 
 “Servicer Payment Date” shall mean each Draw Date. 

“Servicer Report” means a report, in substantially the form of Annex B hereto. 

“Servicer Report Date” means the 15th day of each month, or if such day is not a Business Day, the next Business Day.

 “Servicing Fee” shall mean the fee referred to in Section 4.6. 

“Settlement Date” means each of (a) each Yield Period End Date, (b) any Servicer Payment Date or Backup
Servicer Payment Date and (c) any Fee Payment Date. 
 “Single Employer Plan” means any Plan which is
covered by Title IV of ERISA, but which is not a Multiemployer Plan. 
 “Special Concentration Percentage”
means, without duplication, (i) for [*], (ii) for any other Special Obligor, [*]. 
 “Special
Obligor” means the following Obligors, together with their Affiliates [*]. 
 “Specialty Vehicles”
means [*]. 
 “Specified Ineligible Receivables” means those Pool Receivables that the Servicer has identified
as “Specified Ineligible Receivables” pursuant to Section 4.7. 
 “Static Rental Receivables Pool
Net Loss Rate” means, with respect to Rental Receivables originated and/or serviced by AFC, [*]. 
 “Tangible
Net Worth” means, with respect to any Person, the net worth of such Person calculated in accordance with GAAP after subtracting therefrom the aggregate amount of such Person’s intangible assets, including, without limitation, goodwill,
franchises, licenses, patents, trademarks, tradenames, copyrights, service marks and brand names and capitalized software. 

“Termination Date” means the earliest of (i) the Business Day which the Seller so designates by notice to the Agent
at least 30 days in advance pursuant to Section 1.1(b), (ii) June 30, 2014 (the “Scheduled Termination Date”), and (iii) the date determined pursuant to Section 2.2. 

“Termination Day” means each day which occurs on or after the Termination Date, unless the occurrence of the Termination
Date (if declared by the Majority Purchasers pursuant to Section 2.2) is waived in accordance with Section 6.1. 

  
 EX-I-18

 “Termination Event” has the meaning specified in Exhibit V.

 “Termination Fee” means, with respect to any Portion of the Investment of any Purchaser and any Yield Period
during which any reduction of such Portion of the Investment occurs on a date other than the Yield Period End Date therefor (without giving effect to any shortened duration of such Yield Period pursuant to clause (b)(iv) of the
definition thereof), the amount, if any, by which (i) the additional Discount (calculated without taking into account any Termination Fee) which would have accrued during the remainder of such Yield Period on the reductions of Investment had
such reductions remained as Investment, exceeds (ii) the income, if any, received by the applicable Purchaser from investing the proceeds of such reductions of Investment, as determined by the related Purchaser Agent, which determination shall
be binding and conclusive for all purposes, absent manifest error. 
 “Title Attached Receivable” means [*].

 “Tractor Receivable” means those Receivables generated as a result of the making of loans to finance the
purchase of Tractors. 
 “Tractors” means [*]. 

“Transaction Documents” means the Agreement, the Deposit Account Agreements, the Purchase and Sale Agreement, each
Originating Lender Sale Agreement, the Performance Guaranty, the Pledge Agreement, the Company Note, each Joinder Agreement, the Backup Servicing Agreement, the Backup Servicing Fee Letter (if any) and all other certificates, instruments, UCC
financing statements, reports, notices, agreements and documents executed or delivered under or in connection with any of the foregoing, in each case as the same may be amended, supplemented or otherwise modified from time to time in accordance with
the Agreement. 
 “Transition Expenses” means all reasonable cost and expenses (including Attorney Costs)
incurred by the Backup Servicer in connection with transferring servicing obligations under this Agreement, which shall not exceed the cap established in the Backup Servicing Agreement or the Backup Servicing Fee Letter. 

“UCC” means the Uniform Commercial Code as from time to time in effect in the applicable jurisdiction. 

“Unaffiliated Servicing Fees” means all Servicing Fees payable to an entity, that is not AFC, any Affiliate thereof, or
the Backup Servicer, engaged as Servicer hereunder, as such entity and the Agent shall agree. 
 “Unmatured Termination
Event” means an event which, with the giving of notice or lapse of time, or both, would constitute a Termination Event. 

“Yield Period” means, with respect to each Portion of Investment of any Purchaser: 

(a) initially the period commencing on the date of a purchase pursuant to Section 1.2 and ending such number
of days thereafter as the Seller shall select, subject to the approval of the applicable Purchaser Agent pursuant to Section 1.2; and 

  
 EX-I-19

 (b) thereafter each period commencing on the Yield Period End Date of the
immediately preceding Yield Period and ending such number of days as the Seller shall select, subject to the approval of the applicable Purchaser Agent pursuant to Section 1.2, on notice by the Seller received by the applicable Purchaser
Agent (including notice by telephone, confirmed in writing) not later than 11:00 a.m. (Chicago time) on such Yield Period End Date or the second Business Day prior to such Yield Period End Date if Discount is computed by reference to the Eurodollar
Rate, except that if the applicable Purchaser Agent shall not have received such notice or approved such period on or before 11:00 a.m. (Chicago time) on such Yield Period End Date, such period shall be one day; provided, that

 (i) any Yield Period in respect of which Discount is computed by reference to the Bank Rate shall be a period
from one to and including 90 days; 
 (ii) any Yield Period (other than of one day) which would otherwise
end on a day which is not a Business Day shall be extended to the next succeeding Business Day; provided, however, if Discount in respect of such Yield Period is computed by reference to the Eurodollar Rate, and such Yield Period would
otherwise end on a day which is not a Business Day, and there is no subsequent Business Day in the same calendar month as such day, such Yield Period shall end on the next preceding Business Day; 

(iii) in the case of any Yield Period of one day, (A) if such Yield Period is the initial Yield Period for a purchase
pursuant to Section 1.2, such Yield Period shall be the day of purchase of the Participation; (B) any subsequently occurring Yield Period which is one day shall, if the immediately preceding Yield Period is more than one day, be the
Yield Period End Date of such immediately preceding Yield Period, and, if the immediately preceding Yield Period is one day, be the day next following such immediately preceding Yield Period; and (C) if such Yield Period occurs on a day
immediately preceding a day which is not a Business Day, such Yield Period shall be extended to the next succeeding Business Day; 
 (iv) in the case of any Yield Period for any Portion of Investment which commences before the Termination Date and would otherwise end on a date occurring after the Termination Date, such Yield Period
shall end on such Termination Date and the duration of the initial Yield Period which commences after the Termination Date shall commence on the Termination Date and end on the next Draw Date and thereafter such Yield Period shall commence on the
day after such previous Draw Date and end on the next Draw Date; and 
 (v) each Yield Period of the Portion of
Investment funded by a Non-Revolving Purchaser shall be one calendar month in duration prior to the 

  
 EX-I-20

 
occurrence of the Termination Date (or as otherwise specified in the Joinder Agreement or amendment pursuant to which such Purchaser becomes a party hereto). 

“Yield Period End Date” means the last day of each Yield Period. 

Other Terms. All accounting terms not specifically defined herein shall be construed in accordance with generally accepted
accounting principles. All terms used in Article 9 of the UCC in the State of Indiana, and not specifically defined herein, are used herein as defined in such Article 9. Unless the context otherwise requires, “or” means
“and/or,” and “including” (and with correlative meaning “include” and “includes”) means including without limiting the generality of any description preceding such term. 

  
 EX-I-21

 EXHIBIT II 
 CONDITIONS OF PURCHASES 
 1. Conditions Precedent to Initial Purchase and the
Effectiveness of the Prior Agreement. The effectiveness of the Prior Agreement was subject to the conditions precedent (which have been satisfied or waived as of the date hereof) that the Agent receive on or before the date thereof the
following: 
 (a) A counterpart of the Prior Agreement and the other Transaction Documents duly executed by the parties thereto.

 (b) Certified copies of (i) the resolutions of the board of directors of each of the Seller and AFC authorizing the
execution, delivery, and performance by the Seller and AFC of the Prior Agreement and the other Transaction Documents, (ii) all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the Prior
Agreement and the other Transaction Documents and (iii) the articles of incorporation and by-laws of the Seller and AFC. 

(c) A certificate of the secretary or assistant secretary of the Seller and AFC certifying the names and true signatures of the officers
of the Seller and AFC authorized to sign the Prior Agreement and the other Transaction Documents. Until the Agent receives a subsequent incumbency certificate from the Seller and AFC in form and substance satisfactory to the Agent, the Agent shall
be entitled to rely on the last such certificate delivered to them by the Seller and AFC, as applicable. 
 (d) Financing
statements, in proper form for filing under the UCC of all jurisdictions that the Agent may deem necessary or desirable in order to perfect the interests of the Agent (for the benefit of the Secured Parties) contemplated by the Prior Agreement and
other Transaction Documents. 
 (e) Financing statements, in proper form for filing under the applicable UCC, if any, necessary
to release all security interests and other rights of any Person in the Receivables, Contracts or Related Security previously granted by the Seller or AFC. 
 (f) Completed UCC requests for information, dated on or before the date of the Prior Agreement, listing the financing statements referred to in subsection (e) above and all other effective
financing statements filed in the jurisdictions referred to in subsection (e) above that named the Seller or AFC as debtor, together with copies of such other financing statements (none of which shall cover any Receivables, Contracts or
Related Security), and similar search reports with respect to federal tax liens, judgments and liens of the Pension Benefit Guaranty Corporation in such jurisdictions as the Agent requested, showing no such liens on any of the Receivables, Contracts
or Related Security. 
 (g) Executed copies of a Deposit Account Agreement with each Deposit Account Bank. 

  
 EX-II-1

 (h) Favorable opinions of in-house counsel for the Seller and AFC, as to corporate and such
other matters as the Agent reasonably requested. 
 (i) Favorable opinions of Ice Miller, special counsel for the Seller, ADESA
and AFC, as to enforceability and such other matters as the Agent reasonably requested. 
 (j) Favorable opinions of Ice Miller,
special counsel for the Seller and AFC, as to bankruptcy matters. 
 (k) Certificates of Existence with respect to the Seller
and AFC issued by the Indiana Secretary of State and articles of incorporation of the Seller certified by the Indiana Secretary of State. 
 (l) Evidence (i) of the execution and delivery by each of the parties thereto of the Purchase and Sale Agreement and all documents, agreements and instruments contemplated thereby (which evidence
included copies, either original or facsimile, of each of such documents, instruments and agreements), (ii) that each of the conditions precedent to the execution and delivery of the Purchase and Sale Agreement was satisfied to the Agent’s
satisfaction, and (iii) that the initial purchases under the Purchase and Sale Agreement were consummated. 
 (m) Evidence
of payment by the Seller of all accrued and unpaid fees (including those contemplated by the Fee Letter), costs and expenses to the extent then due and payable on the date thereof, together with Attorney Costs of the Agent to the extent invoiced
prior to or on such date, plus such additional amounts of Attorney Costs as constituted the Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings; including any such costs, fees and
expenses arising under or referenced in Section 6.4 as provided in the Fee Letter. 
 (n) The Fee Letter between the
Seller, AFC and the Purchaser Agents contemplated by and delivered pursuant to Section 1.5. 
 (o) A Servicer Report
representing the performance of the portfolio purchased through the Purchase and Sale Agreement and the Prior Agreement for the month prior to closing. 
 (p) Such confirmations from the rating agencies as were required by any Purchaser in its respective sole discretion. 
 2. Conditions Precedent to the Effectiveness of this Agreement. The effectiveness of the Agreement is subject to the condition precedent that the Agent shall have received on or before the date
hereof the following, each in form and substance satisfactory to the Agent: 
 (a) A counterpart of the Agreement and the other
Transaction Documents duly executed by the parties thereto. 
 (b) Certified copies of (i) the resolutions of the board of
directors of each of the Seller and AFC authorizing the execution, delivery, and performance by the Seller and AFC 

  
 EX-II-2

 
of the Agreement and the other Transaction Documents, (ii) all documents evidencing other necessary corporate action and governmental approvals, if any, with respect to the Agreement and
(iii) the articles of incorporation and by-laws of the Seller and AFC (to the extent such documents have been modified since they were last delivered to the Agent). 
 (c) A certificate of the secretary or assistant secretary of the Seller and AFC certifying the names and true signatures of the officers of the Seller and AFC authorized to sign the Agreement and the
other Transaction Documents. 
 (d) Favorable opinions of in-house counsel for the Seller and AFC, as to corporate and such
other matters as the Agent may reasonably request. 
 (e) Favorable opinions of Ice Miller, special counsel for the Seller and
AFC, as to enforceability and such other matters as the Agent may reasonably request. 
 (f) Evidence of payment by the Seller
of all fees, costs and expenses then due and payable to the Purchasers or the Agent (including, without limitation, any such fees payable under the Fee Letter), together with Attorney Costs of the Agent to the extent invoiced prior to or on such
date, plus such additional amounts of Attorney Costs as shall constitute the Agent’s reasonable estimate of Attorney Costs incurred or to be incurred by it through the closing proceedings. 

(g) A Portfolio Certificate dated as of the last Friday immediately prior to the date hereof, together with a floorplan receivables
summary dated as of the date hereof. 
 (h) Such confirmations from the rating agencies as shall be required by any Purchaser in
its sole discretion. 
 (i) A current list of all branch offices, loan processing offices or other locations at which the Pool
Receivable Documents are being held. 
 (j) Evidence of the filing of appropriate UCC-3 amendments to reflect the revisions to
the collateral description. 
 (k) Such other approvals, opinions or documents as the Agent may reasonably request. 

3. Conditions Precedent to All Purchases and Reinvestments. Each purchase (including the initial purchase) and each reinvestment
shall be subject to the further conditions precedent that: 
 (a) in the case of each purchase, the Servicer shall have
delivered to the Agent on or prior to such purchase, in form and substance satisfactory to the Agent, (i) a completed Servicer Report with respect to the immediately preceding calendar month, dated within 30 days prior to the date of such
purchase (or a completed Portfolio Certificate, dated as of the last Business Day of the immediately preceding calendar week) and (ii) a completed Portfolio Certificate to the extent a daily Portfolio Certificate is required in accordance with
Section 4.2(e) of the Agreement, and shall have delivered to the Agent such additional information as may reasonably be requested by the Agent. 

  
 EX-II-3

 (b) on the date of such purchase or reinvestment the following statements shall be true (and
acceptance of the proceeds of such purchase or reinvestment shall be deemed a representation and warranty by the Seller that such statements are then true): 
 (i) the representations and warranties contained in Exhibit III are true and correct on and as of the date of such purchase or reinvestment as though made on and as of such date; and 

(ii) no event has occurred and is continuing, or would result from such purchase or reinvestment, that constitutes a
Termination Event or an Unmatured Termination Event; and 
 (iii) the sum of the aggregate of the Participations
does not exceed 100%; and 
 (iv) the amount on deposit in the Cash Reserve Account is equal to or greater than
the Cash Reserve; and 
 (c) the Agent shall have received such other approvals, opinions or documents it may reasonably
request. 

  
 EX-II-4

 EXHIBIT III 
 REPRESENTATIONS AND WARRANTIES 
 A. Representations and Warranties of the
Seller. The Seller represents and warrants as follows: 
 (a) The Seller is a corporation duly incorporated and in existence
under the laws of the State of Indiana, and is duly qualified to do business, and is in good standing, as a foreign corporation in every jurisdiction where the nature of its business requires it to be so qualified except where the failure to so
qualify has not had and could not reasonably be expected to have a Material Adverse Effect. 
 (b) The execution, delivery and
performance by the Seller of the Agreement and the other Transaction Documents to which it is a party, including the Seller’s use of the proceeds of purchases and reinvestments, (i) are within the Seller’s corporate powers,
(ii) have been duly authorized by all necessary corporate action of the Seller, (iii) do not contravene or result in a default under or conflict with (1) the Seller’s charter or by-laws, (2) any law, rule or regulation
applicable to the Seller, (3) any contractual restriction binding on or affecting the Seller or its property or (4) any order, writ, judgment, award, injunction or decree binding on or affecting the Seller or its property, and (iv) do
not result in or require the creation of any Adverse Claim upon or with respect to any of the Seller’s properties, where, in the cases of items (2), (3) and (4), such contravention, default or conflict has had or could
reasonably be expected to have a Material Adverse Effect. The Agreement and the other Transaction Documents to which it is a party have been duly executed and delivered by the Seller. 

(c) No authorization or approval or other action by, and no notice to or filing with, any Governmental Authority or other Person is
required for the due execution, delivery and performance by the Seller of the Agreement or any other Transaction Document to which it is a party other than those previously obtained or UCC filings. 

(d) Each of the Agreement and the other Transaction Documents to which it is a party constitutes the legal, valid and binding obligation
of the Seller enforceable against the Seller in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and by
general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or at law. 
 (e)
Since December 31, 2010 there has been no material adverse change in the business, operations, property or financial condition of the Seller or AFC, the ability of the Seller or AFC to perform its obligations under the Agreement or the other
Transaction Documents to which it is a party or the collectibility of the Pool Receivables, or which affects the legality, validity or enforceability of the Agreement or the other Transaction Documents. 

(f) (i) There is no action, suit, proceeding or investigation pending or, to the knowledge of the Seller, threatened against the
Seller before any Government Authority or arbitrator and (ii) the Seller is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any Government Authority or arbitrator, that, in the case of each of
foregoing clauses (i) and (ii), could reasonably be expected to have a Material Adverse Effect. 

  
 EX-III-1

 (g) The Seller is the legal and beneficial owner of the Pool Receivables free and clear of
any Adverse Claim, excepting only Permitted Liens; and has acquired all of the Originator’s right, title and interest in, to and under the Related Security. Upon each purchase or reinvestment, the Agent (for the benefit of the Secured Parties)
shall acquire a valid and enforceable perfected undivided percentage ownership interest, to the extent of the Aggregate Participation, in each Pool Receivable then existing or thereafter arising, free and clear of any Adverse Claim, excepting only
Permitted Liens, in the Collections with respect thereto and in the Seller’s right, title and interest in, to and under the Related Security and proceeds thereof. The Agreement creates a security interest in favor of the Agent (for the benefit
of the Secured Parties) in the items described in Section 1.2(d), and the Agent (for the benefit of the Secured Parties) has a first priority perfected security interest in such items. No effective financing statement or other instrument
similar in effect naming AFC or the Seller as debtor or seller and covering any Contract or any Pool Receivable or the Related Security or Collections with respect thereto or any Deposit Account is on file in any recording office, except those filed
in favor of the Agent (for the benefit of the Secured Parties) relating to the Agreement. 
 (h) [Reserved]. 

(i) Each Servicer Report, Portfolio Certificate, information, exhibit, financial statement, document, book, record or report furnished or
to be furnished at any time by or on behalf of the Seller to the Agent or any Purchaser Agent in connection with the Agreement is or will be accurate in all material respects as of its date or (except as otherwise disclosed to the Agent and any such
Purchaser Agent at such time) as of the date so furnished, and no such item contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein,
in the light of the circumstances under which they were made, not misleading. 
 (j) The principal place of business and chief
executive office (as such terms are used in the UCC) of the Seller and the office(s) where the Seller keeps its records concerning the Pool Receivables are located at the address set forth under its signature to this Agreement. 

(k) The names and addresses of all the Deposit Banks, together with the account numbers of the Deposit Accounts of the Seller at such
Deposit Banks, are specified in Schedule II to the Agreement. 
 (l) The Seller is not in violation of any order of
any court, arbitrator or Governmental Authority. 
 (m) Neither the Seller nor any Affiliate of the Seller has any direct or
indirect ownership or other financial interest in any Purchaser, the Agent or any Purchaser Agent. 
 (n) No proceeds of any
purchase or reinvestment will be used for any purpose that violates any applicable law, rule or regulation, including, without limitation, Regulations T, U and X of the Federal Reserve Board. 

  
 EX-III-2

 (o) Each Pool Receivable included as an Eligible Receivable in the calculation of the Net
Receivables Pool Balance is an Eligible Receivable as of the date of such calculation. 
 (p) No event has occurred and is
continuing, or would result from a purchase in respect of, or reinvestment in respect of, any Participation or from the application of the proceeds therefrom, which constitutes a Termination Event. 

(q) The Seller and the Servicer have complied in all material respects with the Credit and Collection Policy with regard to each Pool
Receivable. 
 (r) The Seller has complied with all of the terms, covenants and agreements contained in the Agreement and the
other Transaction Documents and applicable to it. 
 (s) The Seller’s complete corporate name is set forth in the preamble
to the Agreement, and the Seller does not use and has not during the last six years used any other corporate name, trade name, doing-business name or fictitious name, and except for names first used after the date of the Agreement and set forth in a
notice delivered to the Agent pursuant to paragraph (l)(vi) of Exhibit IV. 
 (t) The authorized capital
stock of Seller consists of 1,000 shares of common stock, no par value, 100 shares of which are currently issued and outstanding. All of such outstanding shares are validly issued, fully paid and nonassessable and are owned (beneficially and of
record) by AFC. 
 (u) The Seller has filed all federal and other tax returns and reports required by law to have been filed by
it and has paid all taxes and governmental charges thereby shown to be owing. 
 (v) The Seller is not an “investment
company” within the meaning of the Investment Company Act of 1940, as amended. 
 (w) No “accumulated funding
deficiency” (within the meaning of Section 412 of the Internal Revenue Code or Section 302 of ERISA) exists with respect to any Single Employer Plan, and each Single Employer Plan has complied in all material respects with the
applicable provisions of ERISA and the Internal Revenue Code. The present value of all accrued benefits under each Single Employer Plan (based on those assumptions used to fund such Plans) did not, as of the last annual valuation date prior to the
date on which this representation is made or deemed made, exceed the value of the assets of such Plan allocable to such accrued benefits. Neither the Seller nor any ERISA Affiliate has had a complete or partial withdrawal from any Multiemployer
Plan, and neither the Seller nor any ERISA Affiliate would become subject to any liability under ERISA if the Seller or any such ERISA Affiliate were to withdraw completely from all Multiemployer Plans as of the valuation date most closely preceding
the date on which this representation is made or deemed made. No such Multiemployer Plan is in Reorganization or Insolvent. 

  
 EX-III-3

 B. Representations and Warranties of the Servicer. The Servicer represents and
warrants as follows: 
 (a) The Servicer is a corporation duly organized and in existence under the laws of the State of
Indiana, and is duly qualified to do business, and is in good standing, as a foreign corporation in every jurisdiction where the nature of its business requires it to be so qualified except where the failure to so qualify has not had and could not
reasonably be expected to have a Material Adverse Effect. 
 (b) The execution, delivery and performance by the Servicer of the
Agreement and the other Transaction Documents to which it is a party, (i) are within the Servicer’s corporate powers, (ii) have been duly authorized by all necessary corporate action on the part of the Servicer, (iii) do not
contravene or result in a default under or conflict with (1) the Servicer’s charter or by-laws, (2) any law, rule or regulation applicable to the Servicer, (3) any contractual restriction binding on or affecting the Servicer or
its property or (4) any order, writ, judgment, award, injunction or decree binding on or affecting the Servicer or its property, and (iv) do not result in or require the creation of any Adverse Claim upon or with respect to any of its
properties, where, in the cases of items (2), (3) and (4), such contravention, default or conflict has had or could reasonably be expected to have a Material Adverse Effect. The Agreement and the other Transaction Documents to which it is a
party have been duly executed and delivered by the Servicer. 
 (c) No authorization or approval or other action by, and no
notice to or filing with, any Governmental Authority or other Person is required for the due execution, delivery and performance by the Servicer of the Agreement or any other Transaction Document to which it is a party. 

(d) Each of the Agreement and the other Transaction Documents to which it is a party constitutes the legal, valid and binding obligation
of the Servicer enforceable against the Servicer in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization or other similar laws affecting the enforcement of creditors’ rights generally and
by general principles of equity, regardless of whether enforceability is considered in a proceeding in equity or at law. 
 (e)
There is no pending or threatened action or proceeding affecting the Servicer before any Governmental Authority or arbitrator which could have a Material Adverse Effect. 
 (f) The Servicer has complied in all material respects with the Credit and Collection Policy with regard to each Pool Receivable. 
 (g) the Servicer is not subject to any order, judgment, decree, injunction, stipulation or consent order of or with any Governmental Authority or arbitrator, that, could reasonably be expected to have a
Material Adverse Effect. 
 (h) Each Servicer Report, Portfolio Certificate, information, exhibit, financial statement,
document, book, record or report furnished or to be furnished at any time by or on behalf of the Seller to the Agent or any Purchaser Agent in connection with the Agreement is or 

  
 EX-III-4

 
will be accurate in all material respects as of its date or (except as otherwise disclosed to the Agent and any such Purchaser Agent at such time) as of the date so furnished, and no such item
contains or will contain any untrue statement of a material fact or omits or will omit to state a material fact necessary in order to make the statements contained therein, in the light of the circumstances under which they were made, not
misleading. 
 (i) The principal place of business and chief executive office (as such terms are used in the UCC) of the
Servicer and the office(s) where the Servicer keeps its records concerning the Pool Receivables are located at the address set forth under its signature to this Agreement or the Backup Servicing Agreement, as applicable. 

(j) The Servicer is not in violation of any order of any court, arbitrator or Governmental Authority. 

(k) Neither the Servicer nor any Affiliate of the Servicer has any direct or indirect ownership or other financial interest in any
Purchaser, the Agent or any Purchaser Agent. 
 (l) The Servicer is not an “investment company” within the meaning of
the Investment Company Act of 1940, as amended. 

  
 EX-III-5

 EXHIBIT IV 
 COVENANTS 
 Covenants of the Seller and the Servicer. Until the latest of
the Termination Date, the date on which no Investment of or Discount in respect of any Participation shall be outstanding or the date all other amounts owed by the Seller under the Agreement to the Purchasers, the Purchaser Agents, the Agent and any
other Indemnified Party or Affected Person shall be paid in full: 
 (a) Compliance with Laws, Etc. Each of the Seller
and the Servicer shall comply in all material respects with all applicable laws, rules, regulations and orders, and preserve and maintain its corporate existence, rights, franchises, qualifications, and privileges except to the extent that the
failure so to comply with such laws, rules and regulations or the failure so to preserve and maintain such existence, rights, franchises, qualifications, and privileges would not materially adversely affect the collectibility of the Receivables or
the enforceability of any related Contract or the ability of the Seller or the Servicer to perform its obligations under any related Contract or under the Agreement. 
 (b) Offices, Records and Books of Account, Etc. The Seller shall provide the Agent with at least 60 days’ written notice prior to making any change in the Seller’s name or jurisdiction of
organization or making any other change in the Seller’s identity or corporate structure (including a merger) which could impair or otherwise render any UCC financing statement filed in connection with this Agreement “seriously
misleading” as such term is used in the applicable UCC; each notice to the Agent pursuant to this sentence shall set forth the applicable change and the proposed effective date thereof. The Seller and Servicer will also maintain and implement
administrative and operating procedures (including, without limitation, an ability to recreate records evidencing Pool Receivables and related Contracts in the event of the destruction of the originals thereof), and keep and maintain all documents,
books, records, computer tapes and disks and other information reasonably necessary or advisable for the collection of all Pool Receivables (including, without limitation, records adequate to permit the daily identification of each Pool Receivable
and all Collections of and adjustments to each existing Pool Receivable). 
 (c) Performance and Compliance with Contracts
and Credit and Collection Policy. Each of the Seller and the Servicer shall, at its expense, timely and fully perform and comply with all material provisions, covenants and other promises required to be observed by it under the Contracts related
to the Pool Receivables, and timely and fully comply in all material respects with the Credit and Collection Policy with regard to each Pool Receivable and the related Contract. 

(d) Ownership Interest, Etc. The Seller shall, at its expense, take all action necessary or desirable to establish and maintain a
valid and enforceable undivided ownership interest, to the extent of the Aggregate Participation, in the Pool Receivables (free and clear of any Adverse Claim excepting only Permitted Liens) and the Collections with respect thereto and the
Seller’s right, title and interest in, to and under the Related Security and the proceeds thereof, and a first priority perfected security interest in the items described in Section 1.2(d), in favor of

  
 EX-IV-1

 
the Agent (for the benefit of the Secured Parties), including, without limitation, taking such action to perfect, protect or more fully evidence the interest of the Agent (for the benefit of the
Secured Parties) under the Agreement as the Agent may request. 
 (e) Sales, Liens, Etc. The Seller shall not sell,
assign (by operation of law or otherwise) or otherwise dispose of, or create or suffer to exist any Adverse Claim (excepting only Permitted Liens) upon or with respect to, any or all of its right, title or interest in, to or under, any item
described in Section 1.2(d) (including without limitation the Seller’s undivided interest in any Receivable, Related Security, or Collections, or upon or with respect to any account to which any Collections of any Receivables are
sent), or assign any right to receive income in respect of any items contemplated by this paragraph (e). 
 (f)
Extension or Amendment of Receivables. After the occurrence and during the continuance of a Termination Event or an Unmatured Termination Event or after the Termination Date (or if a Termination Event or Unmatured Termination Event would
result therefrom), neither the Seller nor the Servicer shall extend the maturity or adjust the Outstanding Balance or otherwise modify the terms of any Pool Receivable in any material respect, or amend, modify or waive any term or condition of any
related Contract in any material respect. 
 (g) Change in Business or Credit and Collection Policy. Without the prior
written consent of the Majority Purchasers, neither the Seller nor the Servicer shall make any material change in the character of its business or in the Credit and Collection Policy, or any change in the Credit and Collection Policy that would
adversely affect the collectibility of the Pool Receivables or the enforceability of any related Contract or the ability of the Seller or Servicer to perform its obligations under any related Contract or under the Agreement. Neither the Seller nor
the Servicer shall make any material change to its standard operating practices or procedures with respect to the Pool Receivables (including, by way of example, its practice of granting waivers relative to the Credit and Collection Policy) without
providing each Rating Agency and the Agent prior written notice thereof to the extent such change would impact a material portion of the Pool Receivables [*]. 
 (h) Audits. Each of the Seller and the Servicer shall, from time to time during regular business hours, upon reasonable prior notice as requested by the Agent, permit the Agent or its agents or
representatives, (i) to examine and make copies of and abstracts from all books, records and documents (including, without limitation, computer tapes and disks) in the possession or under the control of the Seller or the Servicer relating to
Pool Receivables and the Related Security, including, without limitation, the related Contracts, and (ii) to visit the offices and properties of the Seller and the Servicer for the purpose of examining such materials described in
clause (i) above, and to discuss matters relating to Pool Receivables and the Related Security or the Seller’s or Servicer’s performance hereunder or under the Contracts with any of the officers, employees, agents or contractors of
the Seller having knowledge of such matters; provided, however, that the Agent shall not be reimbursed for more than two such examinations in any year (including any examinations conducted pursuant to any other Transaction Document but
excluding any audit conducted pursuant to Section 4.2(a)) unless (x) a Level One Trigger has occurred and is continuing, in which case the Agent shall be reimbursed for four such examinations per year in addition to any audits
conducted pursuant to Section 4.2(a) or (y) a Termination Event or Unmatured Termination Event has occurred, in which case the Agent shall be reimbursed for all such examinations. 

  
 EX-IV-2

 (i) Change in Deposit Banks, Deposit Accounts and Payment Instructions to Obligors.
Neither the Seller nor the Servicer shall add or terminate any bank as a Deposit Bank or any account as a Deposit Account from those listed in Schedule II to the Agreement without (i) the prior written consent of the Agent and
(ii) in the case of a new Deposit Account and/or Deposit Bank, the applicable Deposit Bank has executed, and the applicable Deposit Account is subject to, a Deposit Account Agreement consented to in writing by the Agent. 

(j) Deposit Accounts. Each Deposit Account shall at all times be subject to a Deposit Account Agreement. Neither the Seller nor
the Servicer will deposit or otherwise credit, or cause or permit to be so deposited or credited, to any Deposit Account, the Liquidation Account or the Cash Reserve Account cash or cash proceeds other than Collections of Pool Receivables;
provided that, with respect to the Deposit Account held at [*] (numbered [*]), only cash attributable to “cash collateral” (as such term is defined in the applicable Contract) shall be deposited into such account and such amounts
shall be separately tracked and individually identified on the Servicer Report. In addition, any such “cash collateral” amounts so set aside with respect to a particular Obligor shall be held in the aforementioned Deposit Account until
such amounts are either (i) transferred to the Liquidation Account, if such amounts are being applied to such Obligor’s related Receivables (in such event, the “cash collateral” so applied shall be deemed Collections) or
(ii) returned to such Obligor, if such Obligor has paid its related Receivables in full or as specified in the related Contract documentation. 
 (k) Marking of Records. At its expense, the Seller (or the Servicer on its behalf) shall mark its master data processing records relating to Pool Receivables and related Contracts, including with a
legend evidencing that the undivided percentage ownership interests with regard to the Aggregate Participation related to such Receivables and related Contracts have been sold in accordance with the Agreement. 

(l) Reporting Requirements. The Seller will provide to the Agent and each Purchaser Agent (in multiple copies, if requested by the
Agent) (except that with respect to paragraphs (i), (ii), (iii) and (iv), the Seller will cause AFC (or, with respect to paragraph (iv), the Servicer), to provide to the Agent, each Purchaser Agent, the Backup Servicer (in
the case of paragraph (iii)) and (in the case of items (iii)(a), (iv) and (xiii)) each Rating Agency, the following: 
 (i)
(I) as soon as available and in any event within 45 days after the end of the first three quarters of each fiscal year of AFC in a format acceptable to the Agent the consolidating balance sheet of AFC and its consolidated subsidiaries as of the end
of such quarter and statements of income of AFC and its consolidated subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, certified by the chief financial officer of such Person and
(II) as soon as available, but in any event not later than 45 days after the end of each of the first three quarterly periods of each fiscal year of KAR, the unaudited consolidated balance sheet of KAR and its consolidated Subsidiaries as at the end
of such quarter and the related unaudited consolidated statements of income and of cash flows for such quarter and the portion of the fiscal year through the end of such quarter; 

  
 EX-IV-3

 (ii) (I) as soon as available and in any event within 90 days after the end of each fiscal
year of AFC, (A) a copy of the annual report for AFC and its consolidated subsidiaries, containing financial statements for such year audited by KPMG LLP or other independent certified public accountants acceptable to the Agent, and
(B) the consolidating balance sheet of AFC and the income statement of the Seller for such year certified by the chief financial officer of the Seller, and (II) as soon as available and in any event within 90 days after the end of each fiscal
year of KAR, a copy of the audited consolidated balance sheet of KAR and its consolidated Subsidiaries as at the end of such year and the related audited consolidated statements of income and of cash flows for such year, reported on by KPMG LLP or
other independent certified public accountants of nationally recognized standing; 
 (iii) (a) as soon as available and in
any event not later than the Servicer Report Date, a Servicer Report as of the calendar month ended immediately prior to such Servicer Report Date and (b) unless the Agent has otherwise agreed in writing, a Portfolio Certificate as of each
Friday, delivered on the third Business Day of the next calendar week (or as of each Business Day to the extent required by Section 4.2(e)). Each Servicer Report shall contain a current list of all branch offices, loan processing offices
or other locations at which records and documents relating to the Pool Receivables (including, without limitation, any related Contracts and vehicle certificates of title) (collectively, the “Pool Receivable Documents”) are held by
the Servicer. The Servicer shall provide each Rating Agency with prior notice of any material change to the form of Servicer Report and get their consent thereto prior to implementing any such change. 

(iv) as soon as possible and in any event within three days after the occurrence of each Termination Event and Unmatured Termination
Event, a statement of the chief financial officer of the Seller setting forth details of such Termination Event or event and the action that the Seller has taken and proposes to take with respect thereto; 

(v) promptly after the filing or receiving thereof, copies of all reports and notices that the Seller or any ERISA Affiliate files with
respect to a Plan under ERISA or the Internal Revenue Code with the Internal Revenue Service or the Pension Benefit Guaranty Corporation or the U.S. Department of Labor or that the Seller or any ERISA Affiliate receives from any of the foregoing or
from any Multiemployer Plan to which the Seller or any ERISA Affiliate is or was, within the preceding five years, a contributing employer, in each case in respect of the assessment of withdrawal liability or an event or condition which could, in
the aggregate, result in the imposition of liability on the Seller and/or any such ERISA Affiliate in excess of $250,000; 

  
 EX-IV-4

 (vi) at least 60 days prior to any change in the Seller’s name or any other change
requiring the amendment of UCC financing statements, a notice setting forth such changes and the effective date thereof; 
 (vii)
such other information respecting the Pool Receivables, the Related Security (including inventory reports by branch, Obligor, vehicle identification number, and other descriptions sufficient to identify the Related Security) or the condition of
operations, financial or otherwise, of the Seller or AFC as the Agent or any Purchaser Agent may from time to time reasonably request; 
 (viii) promptly after the Seller obtains knowledge thereof, notice of any litigation, regulatory ruling, default under any Originating Lender Sale Agreement or other event which could reasonably be
expected to prevent any Originating Lender from originating Receivables or transferring Receivables to the Originator following origination; 
 (ix) promptly after the Seller obtains knowledge thereof, notice of the commencement of any proceedings instituted by or against any of the Seller, the Servicer or the Originator, as applicable, in any
federal, state or local court or before any governmental body or agency, or before any arbitration board, in which the amount involved, in the case of the Servicer or Originator, is $500,000 or more and not covered by insurance or in which
injunctive or similar relief is sought or any litigation or proceeding relating to any Transaction Document; 
 (x) promptly
after the occurrence thereof, notice of any event or circumstance that could reasonably be expected to have a Material Adverse Effect; 
 (xi) notice of any material change to the Credit and Collection Policy or any amendment, waiver, extension, termination or replacement of the KAR Credit Facility (with a copy thereof) and an execution
copy of the underlying credit agreement with respect to the KAR Credit Facility, in each case, upon execution thereof; 
 (xii)
as soon as possible and in any event within 30 days after the Seller knows or has reason to know of: (i) the occurrence or expected occurrence of any Reportable Event with respect to any Plan that is a Single Employer Plan, a failure to make
any required contribution to a Plan, the creation of any lien in favor of the Pension Benefit Guaranty Corporation or a Plan or any withdrawal from, or the termination, Reorganization or Insolvency of, any Multiemployer Plan or (ii) the
institution of proceedings or the taking of any other action by the Pension Benefit Guaranty Corporation or the Seller or any ERISA Affiliate or any Multiemployer Plan with respect to the withdrawal from, or the terminating, Reorganization or
Insolvency of any Plan; and 
 (xiii) as soon as available and in any event upon the earlier to occur of (x) 45 days
following the end of a fiscal quarter (90 days, in the case of the fourth fiscal quarter in any fiscal year) and (y) the day a compliance certificate is delivered 

  
 EX-IV-5

 
pursuant to the KAR Credit Facility, a compliance certificate setting forth computations in reasonable detail satisfactory to the Majority Purchasers demonstrating compliance with the financial
covenants of KAR thereunder. 
 (m) Separate Corporate Existence. Each of the Seller and AFC hereby acknowledges that the
Purchasers, the Agent and the Purchaser Agents are entering into the transactions contemplated by the Agreement and the Transaction Documents in reliance upon the Seller’s identity as a legal entity separate from AFC. Therefore, from and after
the date hereof, the Seller and AFC shall take all reasonable steps to continue the Seller’s identity as a separate legal entity and to make it apparent to third Persons that the Seller is an entity with assets and liabilities distinct from
those of AFC, the Originator and any other Person, and is not a division of AFC or any other Person. Without limiting the generality of the foregoing and in addition to and consistent with the covenant set forth in paragraph (a) of this
Exhibit IV, the Seller and AFC shall take such actions as shall be required in order that: 
 (i) The
Seller will be a limited purpose corporation whose primary activities are restricted in its articles of incorporation to purchasing Receivables from the Originator, entering into agreements for the servicing of such Receivables, selling undivided
interests in such Receivables and conducting such other activities as it deems necessary or appropriate to carry out its primary activities; 
 (ii) Not less than one member of Seller’s Board of Directors (the “Independent Directors”) shall be individuals who are not direct, indirect or beneficial stockholders, officers,
directors, employees, affiliates, associates, customers or suppliers of the Originator or any of its Affiliates. The Seller’s Board of Directors shall not approve, or take any other action to cause the commencement of a voluntary case or other
proceeding with respect to the Seller under any applicable bankruptcy, insolvency, reorganization, debt arrangement, dissolution or other similar law, or the appointment of or taking possession by, a receiver, liquidator, assignee, trustee,
custodian, or other similar official for the Seller unless in each case the Independent Directors shall approve the taking of such action in writing prior to the taking of such action. The Independent Directors’ fiduciary duty shall be to the
Seller (and creditors) and not to the Seller’s shareholders in respect of any decision of the type described in the preceding sentence. In the event an Independent Director resigns or otherwise ceases to be a director of the Seller, there shall
be selected a replacement Independent Director who shall not be an individual within the proscriptions of the first sentence of this clause (ii) or any individual who has any other type of professional relationship with the Originator or any of
its Affiliates or any management personnel of any such Person or Affiliate and who shall be (x) a tenured professor at a business or law school, (y) a retired judge or (z) an established independent member of the business community,
having a sound reputation and experience relative to the duties to be performed by such individual as an Independent Director; 
 (iii) No Independent Director shall at any time serve as a trustee in bankruptcy for Originator or any Affiliate thereof; 

  
 EX-IV-6

 (iv) Any employee, consultant or agent of the Seller will be compensated
from the Seller’s own bank accounts for services provided to the Seller except as provided herein in respect of the Servicing Fee. The Seller will engage no agents other than a Servicer for the Receivables, which Servicer will be fully
compensated for its services to the Seller by payment of the Servicing Fee; 
 (v) The Seller will contract with
the Servicer to perform for the Seller all operations required on a daily basis to service its Receivables. The Seller will pay the Servicer a monthly fee based on the level of Receivables being managed by the Servicer. The Seller will not incur any
material indirect or overhead expenses for items shared between the Seller and the Originator or any Affiliate thereof which are not reflected in the Servicing Fee. To the extent, if any, that the Seller and the Originator or any Affiliate thereof
share items of expenses not reflected in the Servicing Fee, such as legal, auditing and other professional services, such expenses will be allocated to the extent practical on the basis of actual use or the value of services rendered, and otherwise
on a basis reasonably related to the actual use or the value of services rendered, it being understood that Originator shall pay all expenses relating to the preparation, negotiation, execution and delivery of the Transaction Documents, including,
without limitation, legal and other fees; 
 (vi) The Seller’s operating expenses will not be paid by
Originator or any Affiliate thereof unless the Seller shall have agreed in writing with such Person to reimburse such Person for any such payments; 
 (vii) The Seller will have its own separate mailing address and stationery; 
 (viii) The Seller’s books and records will be maintained separately from those of the Originator or any Affiliate thereof; 

(ix) Any financial statements of the Originator or KAR which are consolidated to include the Seller will contain detailed
notes clearly stating that the Seller is a separate corporate entity and has sold ownership interests in the Seller’s accounts receivable; 
 (x) The Seller’s assets will be maintained in a manner that facilitates their identification and segregation from those of the Originator and any Affiliate thereof; 

(xi) The Seller will strictly observe corporate formalities in its dealings with the Originator and any Affiliate thereof,
and funds or other assets of the Seller will not be commingled with those of the Originator or any Affiliate thereof. The Seller shall not maintain joint bank accounts or other depository accounts to which the Originator or any Affiliate thereof
(other than AFC in its capacity as Servicer) has independent access and shall not pool any of the Seller’s funds at any time with any funds of the Originator or any Affiliate thereof; 

(xii) The Seller shall pay to the Originator the marginal increase (or, in the absence of such increase, the market amount
of its portion) of the premium payable with respect to any insurance policy that covers the Seller and any Affiliate thereof, but 

  
 EX-IV-7

 
the Seller shall not, directly or indirectly, be named or enter into an agreement to be named, as a direct or contingent beneficiary or loss payee, under any such insurance policy, with respect
to any amounts payable due to occurrences or events related to the Originator or any Affiliate thereof (other than the Seller); and 
 (xiii) The Seller will maintain arm’s length relationships with the Originator and any Affiliate thereof. The Originator or any Affiliate thereof that renders or otherwise furnishes services to the
Seller will be compensated by the Seller at market rates for such services. Neither the Seller nor the Originator or any Affiliate thereof will be or will hold itself out to be responsible for the debts of the other or the decisions or actions
respecting the daily business and affairs of the other. 
 (n) Mergers, Acquisitions, Sales, etc. 

(i) The Seller shall not: 
 (A) be a party to any merger or consolidation, or directly or indirectly purchase or otherwise acquire, whether in one or a series of transactions, all or substantially all of the assets or any stock of
any class of, or any partnership or joint venture interest in, any other Person, or sell, transfer, assign, convey or lease any of its property and assets (including, without limitation, any Pool Receivable or any interest therein) other than
pursuant to this Agreement; 
 (B) make, incur or suffer to exist an investment in, equity contribution to, loan,
credit or advance to, or payment obligation in respect of the deferred purchase price of property from, any other Person, except for obligations incurred pursuant to the Transaction Documents; or 

(C) create any direct or indirect Subsidiary or otherwise acquire direct or indirect ownership of any equity interests in
any other Person. 
 (o) Restricted Payments. 

(i) General Restriction. Except in accordance with subparagraph (ii), the Seller shall not (A) purchase or
redeem any shares of its capital stock, (B) declare or pay any Dividend or set aside any funds for any such purpose, (C) prepay, purchase or redeem any subordinated indebtedness of the Seller, (D) lend or advance any funds or
(E) repay any loans or advances to, for or from the Originator. Actions of the type described in this clause (i) are herein collectively called “Restricted Payments”. 

(ii) Types of Permitted Payments. Subject to the limitations set forth in clause (iii) below, the Seller may
make Restricted Payments so long as such Restricted Payments are made only to the Originator and only in one or more of the following ways: 
 (A) Seller may make cash payments (including prepayments) on the Company Note in accordance with its terms; and 

  
 EX-IV-8

 (B) if no amounts are then outstanding under the Company Note, the Seller
may declare and pay Dividends. 
 (iii) Specific Restrictions. The Seller may make Restricted Payments
only out of Collections paid or released to the Seller pursuant to Section 1.4(b). Furthermore, the Seller shall not pay, make or declare: 
 (A) any Dividend if, after giving effect thereto, Seller’s Tangible Net Worth would be less than [*]; or 
 (B) [*]. 
 (p) Use of Seller’s Share of Collections. Subject to
clause (o) above, the Seller shall apply its share of Collections to make payments in the following order of priority: first, the payment of its expenses (including, without limitation, the obligations payable to Purchasers, the
Affected Persons, the Agent, the Purchaser Agents and the Agent under the Transaction Documents), second, the payment of accrued and unpaid interest on the Company Note, third, the payment of the outstanding principal amount of the
Company Note, and fourth, other legal and valid corporate purposes permitted by the Agreement. 
 (q) Amendments to
Certain Documents. 
 (i) The Seller shall not amend, supplement, amend and restate, or otherwise modify the
Purchase and Sale Agreement, the Company Note, any other document executed under the Purchase and Sale Agreement, the Deposit Account Agreements, the Backup Servicing Agreement, the Backup Servicing Fee Letter (if any) or the Seller’s articles
of incorporation or by-laws, except (A) in accordance with the terms of such document, instrument or agreement and (B) with the prior written consent of the Agent. The Seller shall obtain confirmation of the then–current rating of the
Notes from S&P prior to amending the Seller’s articles of incorporation. 
 (ii) The Originator shall
not enter into, or otherwise become bound by, any agreement, instrument, document or other arrangement that restricts its right to amend, supplement, amend and restate or otherwise modify, or to extend or renew, or to waive any right under, this
Agreement or any other Transaction Document. 
 (r) Incurrence of Indebtedness. The Seller shall not (i) create,
incur or permit to exist any Debt or liability or (ii) cause or permit to be issued for its account any letters of credit or bankers’ acceptances, except for Debt incurred pursuant to the Company Note and liabilities incurred pursuant to
or in connection with the Transaction Documents or otherwise permitted therein. 
 (s) Lot Checks. The Seller shall, or
shall cause the Servicer to, conduct Lot Checks of the Obligors according to the Originator’s customary practices or such more frequent intervals as may reasonably be requested by the Agent. 

(t) Cash Collateral Amounts. With respect to each Eligible Receivable, if the related Contract (or related documentation) includes
a “cash collateral” feature, then all such “cash collateral” shall be deposited to the Deposit Account held at [*] (numbered [*]) and such amounts shall be used to secure the obligations of the related Obligor.” 

  
 EX-IV-9

 (u) Article 122a. On any date on which the Net Receivables Pool Balance is greater
than zero (1) AFC shall own 100% of the outstanding equity (including amounts represented by the Loss Reserve) of the Seller; (2) the equity in the Seller shall represent at least [*] of the Net Receivables Pool Balance (i.e., by virtue of
the Loss Percentage being in excess of [*]); (3) AFC shall not enter into any credit risk mitigation short positions or any other hedges with respect to its equity interest in the Seller or the Eligible Receivables (including amounts
represented by the Loss Reserve); (4) in each Servicer Report, AFC shall represent (a) that it continues to own 100% of the outstanding equity of the Seller and (b) that no credit risk mitigation, short positions or any other hedges
with respect to its equity interest in the Seller or the Eligible Receivables (including amounts represented by the Loss Reserve) have been entered into; and (5) AFC shall provide to any Purchaser or Purchaser Agent which is subject to European
Union Directive 2006/48/EC (the “CRD”) all information which such Purchaser or Purchaser Agent reasonably requests or requires in order for such Purchaser or Purchaser Agent to comply with its obligations under Article 122(a)(4) and
(5) of the CRD. 

  
 EX-IV-10

 EXHIBIT V 
 TERMINATION EVENTS 
 Each of the following shall be a “Termination
Event”: 
 (a) Any Person which is the Servicer shall fail to (1) make when due any payment or deposit to be made by
it under the Agreement or any other Transaction Document or (2) set aside or allocate all accrued and unpaid Program Fee, Discount or Servicing Fee in accordance with Section 1.4(b) and in each case, such failure shall remain
unremedied for two Business Days after the earlier of (i) the Servicer’s knowledge of such failure and (ii) notice to the Servicer of such failure; or 
 (b) The Seller shall fail (i) to transfer to any successor Servicer when required any rights, pursuant to the Agreement, which the Seller then has with respect to the servicing of the Pool
Receivables, or (ii) to make any payment required under the Agreement or any other Transaction Document, and in either case such failure shall remain unremedied for two Business Days after notice or discovery thereof; or 

(c) Any representation or warranty made or deemed made by the Seller or the Servicer (or any of their respective officers) under or in
connection with the Agreement or any other Transaction Document or any information or report delivered by the Seller or the Servicer pursuant to the Agreement or any other Transaction Document shall prove to have been incorrect, incomplete (with
respect to such information or report delivered) or untrue in any material respect when made or deemed made or delivered; provided, however, if the violation of this paragraph (c) by the Seller or the Servicer may be cured
without any potential or actual detriment to any Purchaser, the Agent, any Purchaser Agent, the Backup Servicer or any Program Support Provider, the Seller or the Servicer, as applicable, shall have 30 days from the earlier of (i) such
Person’s knowledge of such failure and (ii) notice to such Person of such failure to so cure any such violation before a Termination Event shall occur so long as such Person is diligently attempting to effect such cure; or 

(d) The Seller or the Servicer shall fail to perform or observe any other material term, covenant or agreement contained in the Agreement
or any other Transaction Document on its part to be performed or observed and any such failure shall remain unremedied for 30 days after the earlier of (i) such Person’s knowledge of such failure and (ii) notice to such Person of such
failure (or, with respect to a failure to deliver the Servicer Report or the Portfolio Certificate pursuant to the Agreement, such failure shall remain unremedied for five days); or 

(e) (i) A default shall occur in the payment when due (subject to any applicable grace period), whether by acceleration or otherwise, of
any Debt of the Seller, AFC or KAR or (ii) a default shall occur in the performance or observance of any obligation or condition with respect to such Debt if the effect of such default is to accelerate the maturity of any such Debt, and, in the
case of either clause (i) or clause (ii), the Debt with respect to which non-payment and/or non-performance shall have occurred exceeds, at any point in time, with respect to the Seller or AFC, $1,000,000 in the aggregate for all
such occurrences or, with respect to KAR, $35,000,000, in the aggregate for all such occurrences; or 

  
 EX-V-1

 (f) The Agreement or any purchase or any reinvestment pursuant to the Agreement shall for
any reason (other than pursuant to the terms hereof) (i) cease to create, or the Aggregate Participation shall for any reason cease to be, a valid and enforceable perfected undivided percentage ownership interest to the extent of the Aggregate
Participation in each Pool Receivable free and clear of any Adverse Claim, excepting only Permitted Liens and the Collections with respect thereto and the Seller’s right, title and interest in, to and under the Related Security and the proceeds
thereof, or (ii) cease to create with respect to all of Seller’s right, title and interest in, to and under the items described in Section 1.2(d)(A) – (F), or the interest of the Agent (for the benefit of the
Secured Parties) with respect to such items shall cease to be, a valid and enforceable first priority perfected security interest, and in the case of the Pool Receivables, free and clear of any Adverse Claim, excepting only Permitted Liens; or

 (g) The Originator, KAR or Seller shall generally not pay its debts as such debts become due, or shall admit in writing its
inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against the Originator, KAR or Seller seeking to adjudicate it a bankrupt or insolvent, or seeking
liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for
relief or the appointment of a receiver, trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding
shall remain undismissed or unstayed for a period of 45 days, or any of the actions sought in such proceeding (including, without limitation, the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other
similar official for, it or for any substantial part of its property) shall occur; or the Originator, KAR or Seller shall take any corporate action to authorize any of the actions set forth above in this paragraph (g); or 

(h) As of the last day of any calendar month, the arithmetic average of the Default Ratios for the most recent [*] shall exceed [*] or
the Default Ratio as of the last day of any calendar month shall exceed [*]; or 
 (i) As of the last day of any calendar month,
the arithmetic average of the Delinquency Ratios for the most recent [*] shall exceed [*] or the Delinquency Ratio as of the last day of any calendar month shall exceed [*]; or 

(j) The Net Spread shall be [*]; or 
 (k) At any time the Aggregate Participation exceeds 100% and such condition shall continue unremedied for five days after any date any Servicer Report or Portfolio Certificate is required to be delivered;
or 
 (l) A Change in Control shall occur; or 
 (m) (i) Any “accumulated funding deficiency” (within the meaning of Section 412 of the Internal Revenue Code or Section 302 of ERISA), whether or not waived, shall exist with respect
to any Plan, (ii) a Reportable Event shall occur with respect to, or proceedings shall commence to have a trustee appointed, or a trustee shall be appointed, to administer or to 

  
 EX-V-2

 
terminate, any Single Employer Plan, which Reportable Event or commencement of proceedings or appointment of a trustee is, in the reasonable opinion of the Majority Purchasers, likely to result
in the termination of such Plan for purposes of Title IV of ERISA, (iii) the Seller or any ERISA Affiliate shall, or in the reasonable opinion of the Majority Purchasers, is likely to, incur any liability in connection with a withdrawal from,
or the Insolvency or Reorganization of, a Multiemployer Plan, (iv) the Internal Revenue Service shall file notice of a lien pursuant to Section 6323 of the Internal Revenue Code with regard to any assets of the Seller or any ERISA
Affiliate and such lien shall not have been released within ten Business Days, or the Pension Benefit Guaranty Corporation shall, or shall indicate its intention to, file notice of a lien pursuant to Section 4068 of ERISA or perfect a lien
under Section 302(f) of ERISA with regard to any of the assets of Seller or any ERISA Affiliate, or (v) any other adverse event or condition shall occur or exist with respect to a Plan; and in each case in clauses (i), (ii), (iii),
(iv) and (v) above, such event or condition, together with all other such events or conditions, if any, could reasonably be expected to involve an aggregate amount of liability to the Seller or an ERISA Affiliate in excess of
$10,000,000; or 
 (n) The Tangible Net Worth of the Seller shall be less than [*] or the Tangible Net Worth of the Originator
shall be less than [*]; or 
 (o) Any material adverse change shall occur in the reasonable business judgment of the Agent or
the Majority Purchasers in the collectibility of the Pool Receivables or the business, operations, property or financial condition of the Originator or the Seller; or 
 (p) The Termination Date shall occur or any Purchase and Sale Termination Event (as defined in the Purchase and Sale Agreement) shall occur (whether or not waived by the Seller); or 

(q) The Performance Guaranty shall cease to be in full force and effect with respect to KAR, KAR shall fail to comply with or perform any
provision of the Performance Guaranty, or KAR (or any Person by, through or on behalf of KAR) shall contest in any manner the validity, binding nature or enforceability of the Performance Guaranty with respect to KAR; or 

(r) the sum of all of AFC’s Debt (including intercompany loans between AFC and KAR but excluding any guarantee of KAR’s Debt
under the KAR Credit Facility), plus the Investment of the Aggregate Participation, plus the outstanding balance of any other recourse or non-recourse transactions exceeds [*]; or 

(s) AFC’s debt (excluding guarantees) to equity ratio is greater than [*]; or 

(t) The aggregate Outstanding Balances of Eligible Receivables shall be less than $100,000,000; or 

(u) The amount on deposit in the Cash Reserve Account shall at any time fail to equal or exceed the Cash Reserve for a period of [*]; or

 (v) (i) any of the Originator, the Seller or the Servicer shall have asserted that any of the Transaction Documents to which
it is a party is not valid and binding on the parties 

  
 EX-V-3

 
thereto; or (ii) any court, governmental authority or agency having jurisdiction over any of the parties to any of the Transaction Documents or any property thereof shall find or rule that
any material provisions of any of the Transaction Documents is not valid and binding on the parties thereto and all appeals therefrom have been decided or the time to appeal has run; or 

(w) the Backup Servicer shall resign or be terminated and no successor Backup Servicer reasonably acceptable to the Agent shall have been
appointed pursuant to a replacement Backup Servicing Agreement within 90 days of such resignation or termination; unless on or prior to the first day in which a Backup Servicer is required to be appointed pursuant to this paragraph
(x) KAR’s senior unsecured debt shall be rated at least “BBB-” by S&P and “Baa3” by Moody’s; provided, that a Termination Event shall be deemed to occur if no Backup Servicer reasonably acceptable to the
Agent shall have been appointed within 90 days following any subsequent withdrawal, suspension or downgrade of such senior unsecured debt ratings of KAR below “BBB-” by S&P or below “Baa3” by Moody’s or, if the
applicable rating is “BBB-” by S&P or “Baa3” by Moody’s, the placement of such ratings on credit watch or similar notation; or 
 (x) the occurrence of a KAR Financial Covenant Termination Event; or 
 (y) as of
the last day of any calendar month, the arithmetic average of the Payment Rate for the most recent [*] shall be less than [*]; or 
 (z) As reported on its consolidated balance sheet, AFC shall fail to maintain (as measured as of the last Business Day of each calendar week) cash and cash equivalents (including, without limitation, any
intercompany receivable payable by KAR to AFC upon demand) of at least [*], at least [*] of which must constitute unrestricted cash (i.e., cash that is neither (i) pledged to a third party unrelated to this facility, nor (ii) in an account
in which a third party unrelated to this facility has a perfected security interest). 

  
 EX-V-4

 EXHIBIT VI 
 PORTFOLIO CERTIFICATE 
 (see attached) 

  
 EX-VI-1

 EXHIBIT VI 
 Form of Portfolio Certificate 
 AFC Funding Corporation 

 

			
	To:	  	 BMO Capital Markets, as Agent and Fairway Purchaser Agent
 Deutsche Bank AG, New York Branch, as Monterey Purchaser Agent
 Barclays Bank PLC, as Salisbury
Purchaser Agent

 Reference is made to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of April 26, 2011,
(herein, as amended or otherwise modified from time to time, called the “Receivables Purchase Agreement”), among AFC Funding Corporation (the “Seller”), Automotive Finance Corporation (the “Servicer”), Fairway Finance
Company, LLC, Monterey Funding LLC, and Salisbury Receivables Company LLC as Purchasers, and such other entities from time to time as may become Purchasers thereunder, BMO Capital Markets as Agent and Purchaser Agent for Fairway Finance Company,
LLC, Deutsche Bank AG, New York Branch as Purchaser Agent for Monterey Funding LLC, and Barclays Bank PLC, as Purchaser Agent for Salisbury Receivables Company LLC. Capitalized terms used but not otherwise defined herein are used as defined in the
Receivables Purchase Agreement. 
  

											
	The Seller hereby certifies and warrants to you that the following is a true and correct computation as of:	  	Date
[Date]

  

													
	(1)	 	Net Receivables Pool Balance	  	 	Amount	  	  	
					
		 	A.	    	Total of all Receivables in the Receivables Pool	  	 	0	  	  	
					
		 	B.	    	Reduction for: Specified Ineligible Receivables	  	 	0	  	  	
					
		 	C.	    	Reduction for: Title Attached Receivables	  	 	0	  	  	
					
		 	D.	    	Reduction for: ineligible Receivables	  	 	0	  	  	
					
		 	E.	    	Reduction for: special concentration limit - [*] day terms	  	 	0	  	  	
					
		 	F.	    	Reduction for: special concentration limit - [*]	  	 	0	  	  	
					
		 	G.	    	Reduction for: special concentration limit - [*]	  	 	0	  	  	
					
		 	H.	    	Reduction for: special concentration limit - [*]	  	 	0	  	  	
					
		 	I.	    	Reduction for: [*]	  	 	0	  	  	
					
		 	J.	    	Reduction for: [*]	  	 	0	  	  	
					
		 	K.	    	Reduction for: Special Concentration limit - [*]	  	 	0	  	  	
		 		    		  		  	  
	  
	 	  	
					
		 	L.	    	Net Receivables Pool Balance	  	 	0	  	  	
				
	(2)	 	Liquidation Account balance excess/(deficit)	  				  	
				
		 	Amount of Collections on deposit in the Liquidation Account (other than amounts transferred thereto from the Deposit Accounts to pay Discount, Servicing Fee,
Unaffiliated Servicing Fee, Backup Servicing Fee, Transition Expenses and Program Fees, Note Placement Fee and Indemnified Amounts)	  	 	0	  	  	
					
	(3)	 	A.	    	current Investment	  	 	0	  	  	
					
		 		    	[*]	  				  	
					
		 		    	plus, with respect to a request for an increase of the Purchasers’ Investments, the amount of such increase.	  	 	0	  	  	
		 		    		  		  	  
	  
	 	  	
					
		 		    	Investment after funding activity	  	 	0	  	  	
					
		 	B.	    	Loss Reserve                     [*]	  	 	#VALUE!	  	  	
		 		    		  		  	  
	  
	 	  	
					
		 	C.	    	Investment + Loss Reserve	  	 	#VALUE!	  	  	
				
		 	Aggregate Participation TEST: (1L plus 2 must be greater than or equal to 3C)	  				  	
		 		    		  	[1L]	  	 	0	  	  	
		 		    		  	[2]  	  	 	0	  	  	
		 		    		  		  	  
	  
	 	  	
		 		    		  		  	 	0	  	  	
		 		    		  	[3C]	  	 	#VALUE!	  	  	
					
		 		    	Is Aggregate Participation less than or equal to 100%?	  	 	[*]	  	  	COMPLIES
				
	(4)	 	Cash Reserve [*]	  				  	
		 		    	Is Level One Trigger applicable?	  	 	No	  	  	
					
		 	A.	    	Cash Reserve Account balance	  	 	0	  	  	
					
		 	B.	    	Cash Reserve Required Amount	  	 	0	  	  	
				
		 	Cash Reserve TEST: (4A must be greater than or equal to 4B)	  	 	COMPLIES	  	  	

 IN WITNESS WHEREOF, the SELLER has caused this Portfolio Certificate to be executed and delivered by the Servicer. In
addition, as of the date of this Portfolio Certificate, both AFC and AFC Funding are in compliance with all Representations & Warranties and Covenants. Also, no Termination Events or Unmatured Termination Events have occurred under the RPA.

  

			
	Automotive Finance Corporation, as Servicer

			
		
	By:	 	  

			
	Name:	 	  

			
	Title:	 	  

 EXHIBIT VII 
 PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS 
 In addition to the
representations, warranties and covenants contained in the Agreement, to induce Purchasers and Agent to enter into the Agreement and, in the case of Purchasers, to purchase the Participation hereunder, the Seller hereby represents, warrants and
covenants to Agent and the Purchasers as to itself as follows on the Closing Date and on the date of each purchase and reinvestment in the Participation thereafter: 
 General 
 1. The Agreement creates a valid and continuing security interest
(as defined in the Indiana UCC) in the Pool Receivables in favor of the Agent, for the benefit of the Secured Parties, which security interest is prior to all other Adverse Claims, and is enforceable as such as against creditors of and purchasers
from the Seller. 
 2. The Pool Receivables constitute “accounts,” “payment intangibles,” “general
intangibles,” “instruments” or “tangible chattel paper,” within the meaning of the Indiana UCC. 
 3.
The Cash Reserve Account, the Deposit Accounts and the Liquidation Account and all subaccounts of such accounts, constitute either a “deposit account” or a “securities account” within the meaning of the Indiana UCC. 

4. The Originator or the Originating Lender, as applicable, thereof has perfected its security interest against the Obligors in the
property securing the Pool Receivables (to the extent that a security interest in such property can be perfected by the filing of a financing statement). 
 Creation 
 5. The Seller owns and has good and marketable title to the Pool
Receivables free and clear of any Adverse Claim, claim or encumbrance of any Person, excepting only Permitted Liens. 
 6.
Originator has received all consents and approvals to the sale of the Pool Receivables to the Seller required by the terms of the Receivables that constitute instruments or payment intangibles. 

Perfection 
 7. Each of the Originator and the Seller has caused or will have caused, within ten days after the effective date of the Agreement, the filing of all appropriate financing statements in the proper filing
office in the appropriate jurisdictions under applicable law in order to perfect the sale of the Receivables from Originator to the Seller pursuant to the Purchase and Sale Agreement and the security interest therein granted by the Seller to the
Agent, for the benefit of the Secured Parties, hereunder; and Originator or Originating Lender has in its 

  
 EX-VII-1

 
possession the original copies of such instruments or tangible chattel paper that constitute or evidence the Pool Receivables, and all financing statements referred to in this paragraph contain a
statement to the effect that: A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Agent, for the benefit of the Secured Parties. 

8. With respect to Pool Receivables that constitute an instrument or tangible chattel paper: 

Such instruments or tangible chattel paper is in the possession of the Servicer and the Agent has received a written acknowledgment from
the Servicer that the Servicer is holding such instruments or tangible chattel paper solely on behalf and for the benefit of the Agent, on behalf of the Secured Parties, and each of the Originator and the Seller has caused or will have caused,
within ten days after the effective date of the Agreement, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law, and all financing statements referred to in this
paragraph contain a statement to the effect that: A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Agent, for the benefit of the Secured Parties. 

9. With respect to the Cash Reserve Account, the Deposit Accounts and the Liquidation Account and all subaccounts of such accounts that
constitute deposit accounts, either: 
 (i) The Seller has delivered to the Agent, for the benefit of the Secured Parties, a
fully executed agreement pursuant to which the bank maintaining the deposit accounts has agreed to comply with all instructions originated by the Agent, for the benefit of the Secured Parties, directing disposition of the funds in such accounts
without further consent by the Seller; or 
 (ii) The Seller has taken all steps necessary to cause the Agent, on behalf of the
Secured Parties, to become the account holder of such accounts. 
 10. With respect to the Cash Reserve Account, the Deposit
Accounts and the Liquidation Account or subaccounts of such accounts that constitute “securities accounts” or “securities entitlements” within the meaning of the Indiana UCC: 

(i) The Seller has delivered to the Agent, for the benefit of the Secured Parties, a fully executed agreement pursuant to which the
securities intermediary has agreed to comply with all instructions originated by the Agent, for the benefit of the Secured Parties, relating to such account without further consent by the Seller; or 

(ii) The Seller has taken all steps necessary to cause the securities intermediary to identify in its records the Agent, for the benefit
of the Secured Parties, as the person having a security entitlement against the securities intermediary in each of such accounts. 

  
 EX-VII-2

 Priority 
 11. Other than the transfer of the Receivables to the Seller under the Purchase and Sale Agreement and the security interest granted to the Agent, for the benefit of the Secured Parties, pursuant to this
Agreement, neither the Seller nor the Originator has pledged, assigned, sold, granted a security interest in, or otherwise conveyed any of the Pool Receivables or the Cash Reserve Account, the Deposit Accounts, the Liquidation Account or any
subaccount of such accounts. Neither the Seller nor the Originator has authorized the filing of, or is aware of any financing statements against the Seller or the Originator that include a description of collateral covering the Pool Receivables or
the Cash Reserve Account, the Deposit Accounts, the Liquidation Account or any subaccount of such accounts other than any financing statement relating to the security interest granted to the Agent, for the benefit of the Secured Parties, hereunder
or that has been terminated. 
 12. Neither the Seller nor the Originator is aware of any judgment, ERISA or tax lien filings
against either the Seller or the Originator. 
 13. None of the instruments or tangible chattel paper that constitute or
evidence the Pool Receivables has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed to any Person other than the Seller or the Agent, for the benefit of the Secured Parties. 

14. Neither the Cash Reserve Account, the Deposit Accounts, the Liquidation Account nor any subaccount of such accounts are in the name
of any person other than the Seller or the Agent, on behalf of the Secured Parties. The Seller has not consented to the securities intermediary of any such account to comply with entitlement orders of any person other than the Agent, on behalf of
the Secured Parties. 
 15. Survival of Perfection Representations. Notwithstanding any other provision of the Agreement
or any other Transaction Document, the Perfection Representations contained in this Exhibit VII shall be continuing, and remain in full force and effect (notwithstanding any termination of the commitments or any replacement of the Servicer or
termination of Servicer’s rights to act as such) until such time as Investments and all other obligations under the Agreement have been finally and fully paid and performed. 

16. No Waiver. The parties to the Agreement: (i) shall not, without obtaining a confirmation of the then-current rating of
the Notes, waive any of the Perfection Representations; and (ii) shall provide the Ratings Agencies with prompt written notice of any breach of the Perfection Representations, and shall not, without obtaining a confirmation of the then-current
rating of the Notes (as determined after any adjustment or withdrawal of the ratings following notice of such breach), waive a breach of any of the Perfection Representations. 
 17. Servicer to Maintain Perfection and Priority. The Servicer covenants that, in order to evidence the interests of the Agent, on behalf of the Secured Parties, under this Agreement, Servicer
shall take such action, or execute and deliver such instruments (other than effecting a Filing (as defined below), unless such Filing is effected in accordance with this paragraph) as may be necessary or advisable including, without limitation, such
actions as are 

  
 EX-VII-3

 
requested by the Agent, on behalf of the Secured Parties, to maintain and perfect, as a first priority interest (subject only to Permitted Liens), the Agent’s, on behalf of the Secured
Parties’, security interest in the Pool Receivables and Collections with respect thereto and the Seller’s right, title and interest in, to and under the Related Security and the proceeds thereof. Servicer shall, from time to time and
within the time limits established by law, prepare and present to the Agent, on behalf of the Secured Parties, for the Agent, on behalf of the Secured Parties, to authorize (based in reliance on the opinion of counsel hereinafter provided for) the
Servicer to file, all financing statements, amendments, continuations, initial financing statements in lieu of a continuation statement, terminations, partial terminations, releases or partial releases, or any other filings necessary or advisable to
continue, maintain and perfect the Agent’s, on behalf of the Secured Parties’, security interest in the Pool Receivables and Collections with respect thereto and the Seller’s right, title and interest in, to and under the Related
Security and the proceeds thereof as a first-priority interest (subject only to Permitted Liens) (each a “Filing”). Servicer shall present each such Filing to the Agent, on behalf of the Secured Parties, together with (x) an
opinion of counsel as to perfection and such other matters as the Agent may reasonably request with respect to such Filing, and (y) a form of authorization for the Agent’s, on behalf of the Secured Parties’ signature. Upon receipt of
such opinion of counsel and form of authorization, the Agent, on behalf of the Secured Parties, shall promptly authorize in writing Servicer to, and Servicer shall, effect such Filing under the Uniform Commercial Code without the signature of
Originator, the Seller, or the Agent, on behalf of the Secured Parties where allowed by applicable law. Notwithstanding anything else in the Agreement to the contrary, the Servicer shall not have any authority to effect a Filing without obtaining
written authorization from the Agent, on behalf of the Secured Parties, in accordance with this paragraph (17). 

  
 EX-VII-4

 SCHEDULE I 
 CREDIT AND COLLECTION POLICY 
 TABLE OF CONTENTS 

 

					
	 INTRODUCTION
	  	 	1.0	  
		
	 RESPONSIBILITY AND AUTHORITY
	  	 	2.0	  
		
	 GOLD ACCOUNTS: Line requests up to [*] (New applications and line increases)
	  	 	3.0	  
		
	 PLATINUM ACCOUNTS: Line requests [*] (New applications and line increases)
	  	 	4.0	  
		
	 CREDIT APPROVAL POLICY
	  	 	5.0	  
		
	 CASH COLLATERAL
	  	 	6.0	  
		
	 ADDITIONAL CURTAILMENT POLICY
	  	 	7.0	  
		
	 AUCTION PURCHASES
	  	 	8.0	  
		
	 NON-AUCTION PURCHASES
	  	 	9.0	  
		
	 DEALER QUICK APPS POLICY
	  	 	10.0	  
		
	 CREDIT FILES & MAINTENANCE
	  	 	11.0	  
		
	 ANNUAL REVIEW POLICY
	  	 	12.0	  
		
	 RATE & TERM ADJUSTMENT PROCEDURE
	  	 	13.0	  
		
	 SPECIAL PROGRAMS
	  	 	14.0	  
		
	 LOAN SUPERVISION
	  	 	15.0	  
		
	 APPENDIX A
	  	 	16.0	  

  
 SCH-I-1

	1.0	INTRODUCTION 

 The AFC
Board of Directors* has adopted these policies for the purpose of establishing its general credit philosophy, guidelines and limitations. 
 These credit policies are intended to provide a framework for management to direct credit activities for the company. While they are intended to be a general guide, it is recognized that specific
situations may arise that would require exceptions to the policies stated herein. Exceptions will be allowed subject to the approval by a majority of the Credit Committee in accordance with sound business practice 

 

	*	See Appendix A 

  
 SCH-I-2

	2.0	RESPONSIBILITY AND AUTHORITY 

  

	 	2.1	Board of Directors 

 The
AFC Board of Directors has ultimate authority for these credit policies. In addition to approving this policy, the Board is responsible for reviewing credit standards, procedures and for monitoring the loan portfolio and its performance. The Board
requires sound credit standards, internal and accounting controls, and periodic audits of loan approvals and transactions. 
  

	 	2.2	Credit Committee 

 The
Credit Committee shall consist of the President and at least four other members. The President may appoint additional members to the Credit Committee at their discretion. The current Credit Committee members are: 

President and CEO, AFC 
 Chief Operating Officer, AFC 
 VP of Finance, AFC 

Director of Credit Services, AFC 
 Financial Controller, AFC 
 CFO – KAR Holdings 

Specific functions and duties of the Credit Committee: 
  

	 	•	 	 Approve loans in excess of [*] Canadian 

  

	 	•	 	 Monitor compliance with this policy and related procedures 

 

	 	•	 	 Recommend changes to this policy as necessary 

  

	 	2.3	Credit Department 

 AFC
shall have the following objectives in its Credit Department: 
  

	 	•	 	 To set the level of funds and monitor performance to make sure AFC is achieving rates of return adequate to meet budgeted profit objectives

  

	 	•	 	 To consider all risks involved with a loan and to evaluate and analyze risk factors during the period that the loan is available

  

	 	•	 	 To maintain a moderately aggressive lending posture that achieves reasonable growth objectives 

 

	 	•	 	 To avoid undue concentrations of exposure to any one credit loan 

  
 SCH-I-3

 The primary functions of the Credit Department shall be to: 

 

	 	•	 	 Process loan applications and prepare recommendations for approval by the Credit Department and Credit Committee 

 

	 	•	 	 Obtain all required loan documentation 

  

	 	•	 	 Manage force-placed insurance 

  

	 	•	 	 Establish and updated the credit file for each loan 

  

	 	•	 	 In addition to these primary duties, other functions may be assigned to the department by the President 

The President shall be responsible for the general administration and supervision of the loan portfolio. He shall monitor compliance with
this policy and shall see that reports of loans approved and other lending activities are made to the Credit Committee. The President or his designee has authority to approve loans up to and including [*]. 

The Director of Credit Services (DCS) shall have primary responsibility for compliance with the policies stated herein and shall see
that proper and complete reports are made to the Credit Committee, and shall be responsible for the day-to-day operation of the Credit Department. The DCS shall see that loan forms and procedures are updated from time to time, that all Credit
personnel are properly trained and that all lending operations are carried out in a prudent and proper manner. The DCS will ensure proper review of procedures and controls over the credit approval process. The DCS will establish and maintain
approved credit limits. It is the DCS and/or the Credit Committee’s prerogative to restrict temporary increases in conjunction with line increases or new lines for [*]. 
 The Credit Analyst has authority to approve new loans and existing loan increases up to and including [*] Canadian in accordance with the AFC Credit Scorecard. The Credit Analyst will use reasonable
business judgment in addition to the scorecard when approving or declining loan applications. Loan approvals, which exceed the scorecard limit, require approval by the Assistant Credit Manager, Credit Manager, or DCS. 

 

	 	2.4	Credit Standards 

 Credit
shall be extended to qualified dealers according to the following criteria: 
 [*] 

Other considerations: 
 [*] 

  
 SCH-I-4

	 	2.5	Credit Terms 

 US
Standard Terms 
 Retail 
 [*] 
 Curtailments (in contract) on terms < [*] days =[*] Reduction 

Curtailments (in contract) on terms > [*] days = [*] Reduction 
 Rental 
 [*] 
 Salvage 
 [*] 
 Curtailments are [*] 
 We also Floorplan Transportation Costs on Salvage currently

  
 SCH-I-5

 Canadian Standard Terms 

Retail 
 [*] 

Salvage 
 [*] 

Curtailments (in contract) on terms < [*] days = [*] Reduction 
 Curtailments (in contract) on terms > [*] days = [*] Reduction 
 We also Floorplan
Transportation Costs on Salvage currently 
 Rental 
 [*] 

  
 SCH-I-6

	 	2.6	Citizenship 

 It is
AFC’s policy to lend only to U.S. Citizens, Canadian Citizens, and/or Non-U.S. Citizens who are legal permanent residents of the United States (“Legal Permanent Resident”). When considering whether to extend credit to a Legal
Permanent Resident, AFC will do so without regard to the applicant’s specific race, nationality, or ethnic origin; rather it will consider the application under the totality of the circumstances. The Credit Department will maintain the current
legal requirements to be considered a Legal Permanent Resident. All discrepancies must be discussed with the Legal Department or outside Counsel. 
 AFC reserves the right, through the Freedom of Information Act (FOIA)/Privacy Act (PA), to require a Legal Permanent Resident to obtain verification of the validity of their documentation via a formal
request through the FOIA/PA. 
  

	 	2.7	Office of Foreign Assets Control (OFAC) verification process 

  

	 	1.	Dealer customers provide AFC, at least, some or all of the documents listed below (depending on the size of their request for funds). The information contained on these
documents is used to validate the identity of said Applicant: 

  

	 	a.	Credit Application 

  

	 	b.	Driver’s License 

  

	 	c.	Dealer License 

  

	 	d.	Person & Corporate Tax Returns 

  

	 	e.	Voided Checks 

  

	 	2.	AFC validates the authenticity of the Applicant via the following methods: 

 

	 	a.	Credit Bureau is pulled to validate person’s authenticity of DOB and SSN 

 

	 	b.	Driver’s License is used to validate person via name, photo, and DOB 

  

	 	c.	LexisNexis is pulled to validate corporate entities 

  

	 	d.	Signatures are also matched on all documents 

  

	 	3.	All documents received as well as information researched are maintained electronically in COSMOS and Visiflow systems, indefinitely. 

 

	 	4.	OFAC data is tracked up front via credit bureau reporting, and periodically through a master pull by the IT Department. 

 

	 	a.	When the Credit Department has an OFAC alert we have on of our Credit Analysts utilize the following procedures to investigate the alert. 

 

	 	5.	Review of the OFAC list is done through the following web sites: 

  

	 	a.	http://www.treas.gov/offices/enforcement/ofac/sdn/index.shtml (US) 

  

	 	b.	http://www.osfi-bsif.gc.ca/osfi/index_e.aspx?ArticleID=524 (Canadian) 

 

	 	i.	To open a list in Excel, first save the list as a text file, then open with Excel 

 

	 	ii.	Hotline number for verification is (800) 540-6322 

  

	 	6.	To verify a SSN: 

  

	 	a.	Verify SSN on COSMOS with a SSN search 

  
 SCH-I-7

	 	b.	If SSN does not match , verify SSN on application in Visiflow, search again 

 

	 	c.	If no match, search for Name and Address in LexisNexis 

  

	 	d.	If no match, contact Hotline 

Note: According to the AFAC hotline, if an individual has a valid social security number, that person will not be a match on the OFAC
list. Therefore, if we can verify the social security number through one of our sources the “match” is assumed to be a false positive. 
  

	 	2.8	Notice of Address Discrepancy Policy 

 Automotive Finance Corporation and AFC Cal, LLC (referred to herein, collectively, as “AFC”) have adopted this Notice of Address Discrepancy Policy (the “Policy”). This Policy should
be used as guidance for handling Notices of Address Discrepancy that AFC receives from a consumer reporting agency, such as Experian, TransUnion, and Equifax (each an “Agency”). 

The federal financial institution regulatory agencies, including the Federal Trade Commission (“FTC”), have determined that a
Notice of Address Discrepancy (defined below) is an indicator that a consumer’s identity may have been compromised. AFC has implemented the Policy to assist in reducing the chance that identity thieves can damage the credit reputations of its
customers. Accordingly, this Policy should be followed each time that AFC receives a Notice of Address Discrepancy. Any questions regarding this Policy or its implementation should be directed to the Director of Credit Services at 317-843-4750 or
sdrehs@autofinance.com. 
 Notice of Address Discrepancy Defined 

A Notice of Address Discrepancy is a notice sent by an Agency to inform AFC of a substantial difference between: (1) the
customer’s address that AGC provided in a request for a consumer report: and (2) the address in the Agency’s file for such a customer. 
 Duty to Form a Reasonable Belief regarding the Identity of a Customer 
 Upon
receipt of a Notice of Address Discrepancy, AFC must take steps to form a reasonable belief that the consumer report that AFC received relates to the customer about whom AFC requested the consumer report. 

The first step in forming this reasonable belief is to compare the information in the consumer report with information in AFC’s
records regarding the customer. Information in the following types of documents in AFC’s records should be compared with the information in the consumer report: 
  

	 	1.	The customer’s application(s), any change of address notification(s), and any other customer account records: and/or 

  
 SCH-I-8

	 	2.	The customer’s driver’s license, passport, or other unexpired government issued identification. 

If a comparison of the information in the consumer report with the information in the foregoing documents does not allow AFC to form a
reasonable belief regarding the identity of the customer, AFC should employ one or more of the following methods in order to form such a reasonable belief. 
  

	 	1.	Contacting the customer to discuss the discrepancy; 

  

	 	2.	Independently verifying the customer’s identity through the comparison of information provided by the customer with information obtained from an Agency, public
database, or a reputable third party source: 

  

	 	3.	Checking references with other financial institutions; or 

  

	 	4.	Obtaining a financial statement regarding the customer. 

 Generally, if AFC cannot confirm the customer’s identity, AFC should not open an account for the customer or allow the customer to carry out transactions. Further, if the customer already has an
account with AFC, AFC may need to close the account. 
 Duty to Furnish a Customer’s Address to an Agency 

Upon receipt of a Notice of Address Discrepancy, AFC also must take steps to confirm the correct address for the relevant customer. In
order to make this determination, AFC should follow the procedure outlined above relating to forming a reasonable belief regarding the identity of a customer. 
 After AFC has reached a reasonable determination regarding the correct address for a customer, and if all of the following elements are satisfied, AFC must furnish the customer’s confirmed address to
the Agency that sent AFC the Notice of Address Discrepancy; 
  

	 	1.	AFC has formed a reasonable belief that the consumer report actually relates to the customer about whom AFC requested the report. 

 

	 	2.	AFC establishes a continuing relationship with the customer (e.g. AFC allows the customer to open an account, AFC provides the customer with requested funds, etc); and

  

	 	3.	AFC regularly furnishes information to the relevant Agency in the ordinary course of business (e.g. AFC regularly provides the relevant Agency with information
regarding its customers’ creditworthiness). 

 If AFC confirms the customer’s address and determines that
it is necessary for AFC to furnish the customer’s address to an Agency, the confirmed address should be included in AFC’s next regularly scheduled delivery of information to the relevant Agency. 

  
 SCH-I-9

	 	2.9	Credit Limits and Advances 

Since credit limits may be set or altered by a State from time to time, the Credit Department and Legal Department will monitor this on an
ongoing basis. Additionally, it might be a requirement of a State to have a minimum advance on the dealer’s line. These regulations will also be monitored and adjusted accordingly. Currently the State of CA has an INITIAL minimum advance
requirement of $5,000. 
 The Credit Department reserves the right to alter a dealer’s credit limit based on the above
factors as well as performance concerns and overall utilization. 

  
 SCH-I-10

	3.0	GOLD ACCOUNTS: Line requests to [*] Canadian (New applications and line increases) 

 

	 	3.1	New Application 

Application Process: 
 The credit process is initiated when the branch receives a completed and signed application from a dealer. The branch must enter the application and reference information into the COSMOS computer system
and send to the Corporate Credit Department. A Credit Analyst within the Credit Department will complete a credit analysis which includes a bank account analysis (from 3 months banks statements), credit bureau, UCC/lien search, KO Book check,
credit summary, and credit scorecard. [*]. 
  

	 	3.2	Existing Credit Lines 

Credit Line Increase Requests: 
 Minimum Requirements: 
 [*] 

The branch should submit the documents above via the computer system (EDMS), to the Credit Department. 

 

	 	3.3	Contract Documents Required: 

 Required Documents: 
  

	 	1.	Sole Proprietorship and Partnerships 

 [*] 
  

	 	2.	Corporations 

[*] 
  

	 	3.	LLCs 

 [*]

 In all cases the Dealer must provide [*]. This must be provided BEFORE the account is activated for use by the Dealer in
COSMOS. 

  
 SCH-I-11

	4.0	PLATINUM ACCOUNT: Line requests over [*] (New applications and line increases) 

When a request for a platinum package is received at the corporate Credit Department the following steps will be taken: 

 

	 	4.1	Platinum Package Review 

  

	 	4.1.1	Complete Packages 

  

	 	•	 	 If the package is complete, the Branch Manager will be able to see updates on the weekly Platinum Stats Sheet that is sent out at the end of a
workweek. 

  

	 	•	 	 The Credit Department will send a final e-mail with the decision from Credit Committee when received. 

 

	 	4.1.2	Incomplete Packages 

  

	 	•	 	 If the package is incomplete, the branch will be e-mailed a list of missing documents. 

 

	 	•	 	 The Credit Department will follow-up with the dealer via a phone call and/or letter to assist the branch in gathering missing documents, if necessary.

  

	 	•	 	 If the missing documents are not received within [*], the request will be stale dated. The package will be scanned into EDMS and originals will be
shredded. 

  

	 	•	 	 The package can be resubmitted when complete with updated documents. 

 

	 	4.2	Contents of a Complete Platinum Package 

  

	 	4.2.1	[*]. 

  

	 	4.2.2	[*]. 

  

	 	4.2.3	[*]. 

  

	 	4.2.4	[*]. 

  

	 	4.2.5	[*]. 

  

	 	4.2.6	A new applicant requires a completed, signed AFC application; a completed signed checklist, [*]. 

A review requires an AFC Review Worksheet, a completed Dealer Modification Form, [*]. 

 

	 	4.2.7	It is necessary to obtain other floorplan sources, current balances and all information related to all auction references listed (There is space for this information on
the [*] Checklist). 

  

	 	4.2.8	[*]. 

 This document can come in
many formats, so please utilize your Credit Analyst, Credit Manager, or DCS for assistance in making sure we have the correct information. 
  

	 	4.2.9	 LLC (if applicable)- Because of the way the Limited Liability Companies are structured, it is necessary to obtain and send Articles of Organization,
and the Operating Agreement (where applicable) to the Credit 

  
 SCH-I-12

	 	
Department. Where there is no Operating Agreement required by the state, we will need to see the corporate tax returns. If there are neither, then AFC will draft a document that must be signed by
certain members and/or manager of the Borrower. We need to identify all Members and Managers. [*]. 

 There are
two common structures of an LLC: 
  

	 	•	 	 Member managed – [*]. 

  

	 	•	 	 Manager Managed – [*]. 

 In the event of a discrepancy the Legal Department will be involved in making the appropriate decision. 
  

	 	4.2.10	If a Corporation, please obtain a copy of dealership’s Articles of Incorporation. 

 

	 	4.2.11	Completed [*] checklist signed by Branch Manager verifying that package is complete (can be located on MyKarma). 

 

	 	4.2.12	Security or collateral – It may be necessary to obtain security or collateral in the form of a mortgage. This possibility should be discussed with the dealer.

 If security is needed, the dealer needs to be advised that the average cost of document preparation may exceed
[*]. These costs include: 
  

	 	•	 	 A property appraisal 

  

	 	•	 	 A title search 

  

	 	•	 	 The cost for having a Deed of Trust or a Mortgage prepared 

 If the property being used as collateral is a commercial property, please be aware that these costs could be considerably higher due to [*]. 

[*]. 
 If the
increase is subject to security or collateral, the Credit Department will put the branch in touch with in-house counsel. When contacted, counsel will know what is required and in most cases can handle internally. 

Security or collateral could also be in the form of a certificate of deposit, LOC, or cash. Any other type of security or collateral
should be discussed with a Regional Manager. 
  

	 	4.2.13	All Platinum accounts that have a Credit Line of [*] will be subject to the following additional scrutiny: 

[*]. 

  
 SCH-I-13

	5.0	CREDIT APPROVAL POLICY 

  

	 	5.1	Gold Accounts: Credit Lines [*] 

 The Credit Analyst has the authority to credit decision the following: 
  

	 	•	 	 New applications 

  

	 	•	 	 Requests for increases 

  

	 	•	 	 Annual reviews 

  

	 	•	 	 Standard term changes [*]. Non-standard term change requests must be approved by the Credit Manager or the Director of Credit Services.

  

	 	•	 	 Once an application is approved [*]. 

  

	 	5.2	Platinum Accounts: Credit lines [*] 

 Credit lines over [*] are handled in the following manner. 
  

	 	5.2.1	The Sr. Credit Analyst will prepare the credit package and route to the Credit Manager. At the same time the analyst e-mails their recommendation to the RM and BM. They
have the ability to recommend revising or terminating the request. The Sr. Credit Analyst may also order a criminal background check at this time with the appropriate authorization. 

 

	 	5.2.2	The Credit Manager will review, make recommendation and route the package to the Divisional VP for their recommendation if available. 

 

	 	5.2.3	The Divisional VP will review the credit package and will make a recommendation to accept, revise, or terminate the request, then the credit package should be given
back to the Credit Manager to process the decline. If they chose to move forward with the request, then the package should be given to DCS. 

  

	 	5.2.4	The DCS will review the file, make a recommendation and then forward it to the remaining credit committee members. 

The following are the dollar amounts and the corresponding credit committee members required to approve the request (in addition to the
DCS): 
  

	 	•	 	 Loan requests up to [*] 

  

	 	•	 	 VP of Finance, Financial Controller, COO, or another representative as directed by the President 

 

	 	•	 	 Loan requests between [*] up to [*] 

  

	 	•	 	 President, Financial Controller, VP of Finance, COO, or the CFO of KAR Holdings (Two of the five). 

 

	 	•	 	 Loan requests in excess of [*] must be reviewed by every member of the Credit Committee 

  
 SCH-I-14

	*	It is not necessary for the President to sign on loan packages under [*]: however, the President may sign in place of any of the individuals listed above.

  

	 	5.2.5	The file will be returned to the Credit Manager who will prepare a summary term sheet, if necessary. The package will be routed back to the DCS for review of all
recommendations. It is the credit manager’s and/or the DCS’ responsibility to interpret all recommendations and ensure that a majority of signing members agree on a final decision. 

 

	 	5.2.6	The final decision will be forwarded to the Branch Manager via email and also entered into COSMOS. The Credit Analyst will detail why the decision was made, if other
than requested, in an email to the Branch Manager. 

  

	 	5.2.7	Term change requests require the approval of the following (after RM and Division VP approval): 

 

	 	•	 	 DCS 

  

	 	•	 	 VP of Finance, COO, or another representative as directed by the President. 

 

	 	•	 	 An independent VP or the President can substitute for the above individuals if they are not available. 

If a dealer is not contracted within [*] of approval, the dealer must reapply unless an exception is made by the Credit Manager.

  
 SCH-I-15

	6.0	CASH COLLATERAL 

  

	 	6.1	Policy Statement 

 This
policy outlines a method in which dealers may provide cash collateral as a credit or other enhancement for AFC to consider in AFC’s underwriting process or as otherwise required. 

 

	 	6.2	Guidelines 

  

	 	6.2.1	Process 

  

	 	•	 	 Cash Collateral Accounts may be established through normal (Gold or Platinum) Credit Process or through a collaborative requirement by Operations and
Collections 

  

	 	6.2.1.1	Gold or Platinum Credit Process 

  

	 	•	 	 Gold Accounts will follow the New and Existing Gold Credit Line policy with the additional requirement of approval by the Credit Manager or the
Director of Credit. Platinum Accounts will follow the New and Existing Platinum Credit Line policy. 

  

	 	6.2.1.2	Operations / Collections 

  

	 	•	 	 Operations or Collections upon agreement of the other may require that a dealer provide a cash collateral account to AFC and shall notify the Credit
Department of the agreed upon cash collateral requirement. 

  

	 	6.2.2	Required Documents  

  

	 	•	 	 Completed Cash Collateral Amendment 

  

	 	6.2.3	Corp Contracts Dept 

  

	 	•	 	 Enter the required minimum balance of the cash collateral in the Status History in COSMOS or in such other readily viewable location in COSMOS

  

	 	6.2.4	Branch 

  

	 	•	 	 Notify accounting of the new cash collateral account and notify dealer of the terms 

 

	 	•	 	 Collect agreed amount in addition to owed amount with each payment (excluding curtailments unless otherwise agreed) to AFC.

  

	 	•	 	 Deposit in collateral overage account (not the overage account) in COSMOS 

 

	 	•	 	 If dealer agrees, the branch may collect more than the amount required by the Credit Committee 

 

	 	6.2.5	Accounting / Treasury 

  

	 	•	 	 Transfer monies listed in the Collateral Overage Account in COSMOS to AFC’s Dealer Cash Collateral Account 

 

	 	•	 	 Allocate interest earned on a monthly basis to the respective dealers with cash collateral balances and updates the respective COSMOS Cash Collateral
accounts 

  

	 	•	 	 Send 1099INT’s on an annual basis to the respective dealers 

  
 SCH-I-16

	 	6.2.6	Withdrawals 

  

	 	•	 	 Approval from the Director of Credit or a Credit Committee member in the absence or unavailability of the Director of Credits is required prior to any
withdrawal from the Cash Collateral Account. 

  

	 	•	 	 Unless the withdrawal does not cause the Cash Collateral account to be less than the minimum required balance for the Cash Collateral account, prior to
granting approval for such withdrawal, the Director of Credit or the Credit Committee member, as the case may be, shall consult with the Legal and Collections department prior to granting approval for any withdrawal from the Cash Collateral Account.

  

	 	•	 	 If a Cash Collateral Account is terminated via all monies being withdrawn or if more than [*] is withdrawn from a Cash Collateral Account, the
dealer’s account must be restricted and must be reviewed by [*]. 

  
 SCH-I-17

	7.0	ADDITIONAL EXTENSION OF CURTAILMENT DATE 

 AFC has the ability to grant addition curtailment(s) beyond contracted terms when deemed a good business decision. The guidelines outlined below must be followed and the proper approvals must be granted
prior to the transaction. 
  

	 	7.1	Extension Guidelines 

 An
additional extension of curtailment date, beyond contract terms for a unit, may be approved with the following qualifiers: 
  

	 	7.1.1	Dealer must have a [*] history with AFC. 

  

	 	7.1.2	No failed lot audits in the last [*]. 

  

	 	7.1.3	No NSF’s in the last [*]. 

  

	 	7.1.4	No unit should be curtailed past [*]. If an additional extension is necessary, [*] approval is required. 

 

	 	7.1.5	Contract floorplan fees apply. 

  

	 	7.1.6	Any additional extension of curtailment requires [*] the contracted curtailment percentage of the outstanding principal amount plus fees, interest, and any
‘other’ charges. In COSMOS, the curtailment percentage can be found by accessing the dealership master contract screen, then by right clicking the contract terms and looking for the non-salvage curtailment percentage under the name section
of this contract terms’ screen. 

  

	 	7.1.7	The unit must be visually verified, photo verified, or phone verified (at an AFC approved auction) by an AFC employee or an AutoVin Field Manager prior to the COSMOS
transaction date. 

  

	 	•	 	 When branch personnel visually inspect or phone verify the unit, the “Additional Curtailment Branch Inspection Form” must be completed and
attached to the applicable Bill of Sale/floorplan source document in the dealer’s Title File. 

  

	 	•	 	 Branches may use photos in place of visual inspections when visual inspections are not possible. There must be at least two photos, one photo of the
valid AFC P.O. number for the current week with the Vehicle Identification Number (VIN) plate and one photo of the vehicle. The branch will receive a daily email in their branch inbox with their Corporately assigned AFC P.O. number. Each number will
be valid for [*]. Branch must attach all inspection photos to the respective paid source document. 

  

	 	•	 	 Salvage units and non-titled units are not eligible for curtailments beyond contract terms. 

  
 SCH-I-18

	 	7.2	Approvals 

  

	 	1.	 1st extension of curtailment beyond contracted terms must be approved by [*]. 

  

	 	2.	 2nd extension of curtailment beyond contracted terms must be approved by [*]. 

  

	 	3.	 3rd extension of curtailment or greater beyond contracted terms must be approved by [*]. 

  

	 	4.	Approvals must be documented in writing using the Additional Curtailment Request form. Approvals must be attached to the applicable Bill of Sale/floorplan source
document in the dealer’s Title File. 

 [*]. 

  
 SCH-I-19

	8.0	AUCTION PURCHASE 

  

	 	8.1	Policy Statement 

 This is
a purchase in which a unit is purchased through the auction lane of an AFC-approved auction and AFC pays the approved auction directly. The dealer must present the auction ticket as the loan’s source documentation. 

 

	 	8.2	Auction Purchase Guidelines 

  

	 	8.2.1	Branch employees must verify the transaction by inspecting the related documentation. The table below explains the parameter for advances made for an AFC Approved
Auction Purchase. 

  

	 	8.2.2	When flooring an auction purchase, the COSMOS “Auction” Purchase Type must be used unless the unit is purchased from a non approved auction

  

	 	8.2.3	The COSMOS “Non-Auction” Purchase Type must be used when flooring an auction purchase from a non-AFC approved auction. 

 

	 	8.2.4	[*]. 

  

							
	 [*]
	  	 Maximum AFC Advance
	  	COSMOS
Floorplan
Date	  	Additional AFC Fee
				
	[*]	  	Up to [*]	  	[*]	  	No
				
	[*]	  	Up to [*]	  	[*]	  	[*]
				
	[*]	  	Up to [*]	  	[*]	  	[*]

  

	 	8.2.5	[*]. 

  

	 	8.2.6	Canadian Advances: When comparing the value guides with the auction ticket, [*]. However, when advancing the funds for the unit, [*]. 

 

	 	8.3	Approved Auction Purchase Required Documentation 

  

	 	8.3.1	Negotiable Title or Manufacturers Statement of Origin (MSO) / Manufacturers Certificate of Origin. 

 

	 	8.3.2	Auction Ticket (the auction ticket must include the following legible items: Buyer’s Name, Seller’s Name, Sale Date, Year, Make, Model, Mileage, Full VIN and
Sale Price). 

  

	 	8.3.3	For Canadian Bill of Sales, Buyers signatures are required. The branch must stamp every Canadian Bill of Sales (excluding Alberta). The stamp indicates: “Original
Ownership held at (the branch name including phone number) and Dealer Cannot Apply for Duplicate or Loss of Ownership.” 

  
 SCH-I-20

	 	8.3.4	The Branch Manager may approve up to [*] over the approved value guide’s value as long as the total amount does not exceed [*]. (Applies to auction purchases
greater than [*]). 

  

	 	8.3.5	Inspections must take place prior to releasing funds. (Applies to auction purchases greater than [*]). 

 

	 	8.4	Units with Floorplanned Amounts Over [*] 

  

	 	•	 	 The total floorplan fee for this privilege is [*]. [*] approval required for units with floorplanned amounts over [*]. 

  
 SCH-I-21

	9.0	NON-AUCTION PURCHASE (NAP) 

  

	 	9.1	Policy Statement 

 This is
a purchase in which a unit is not purchased through the auction lane of an AFC approved auction. [*]. The dealer must provide appropriate source documentation showing how they acquired the unit and the cost they incurred in doing so. When flooring a
Non-Auction Purchase (NAP), the COSMOS “Non-Auction” Purchase Type must be used. 
  

	 	9.2	Non-Auction Purchases Guidelines 

 There are many ways a dealer can acquire inventory. The three that occur most often are: 
  

	 	1.	Dealer takes unit on trade from a retail customer 

  

	 	2.	Dealer trades inventory with another dealer (new or used) 

  

	 	3.	Dealer directly purchases from another dealer (new or used), fleet organization or other automotive entity 

 

					
	 [*]
	 	 Maximum AFC Advance
	 	 Additional Administrative

Fee Charged to Dealer

			
	 [*]
	 	 Up to either [*] (whichever
 is less). Inspection Required.
	 	Yes – [*]
			
	 [*]
	 	 Up to [*] (whichever is less).
 Inspection Required.
	 	Yes – [*]

  

	 	9.2.1	Required Documentation 

  

	 	•	 	 Negotiable Title or Manufacturers Statement of Origin (MSO) / Manufacturers Certificate of Origin, approved value guide, Advance Checklist form and an
Original Bill of Sale (must include legible Buyer’s Name, Seller’s Name, Sale Date, Year, Make, Model, Mileage, Full Vehicle Identification Number (VIN), Sale Price and Buyers Signature. If unit is a retail trade-in, the Bill of Sale must
also include a trade-in allowance amount). 

  

	 	9.2.2	The branch must stamp every Canadian Bill of Sale (excluding Alberta). The stamp indicates: “Original Ownership Held at (the branch name including phone number)
and Dealer Cannot Apply for Duplicate or Loss Ownership.” 

  

	 	9.2.3	The Branch Manager may approve up to [*] over the approved guide’s value as long as the total amount does not exceed the bill of sale. 

 

	 	9.2.4	Required inspections must take place within [*] business days of the COSMOS transaction date and prior to releasing funds. 

  
 SCH-I-22

	 	9.2.5	Approved Value Guides (the selected Value Guide must be geographically specific to the flooring branch’s location where applicable): A copy of the value guide used
must be attached to the Bill of Sale. 

  

	 	9.2.6	Canadian Advances 

  

	 	•	 	 When comparing the value guides listed below with the auction ticket, [*]. However, when advancing the funds for the unit, [*].

 One of the following [*] guides must be consulted initially: 

 

	 	•	 	 [*] 

 Only
if a value is not available in one of the above [*] guides, should the following value guides be used (No web-based consumer value guides are allowed to be used when they represent retail values): 

 

	 	•	 	 [*] 

  

	 	9.2.7	Branches may use photos in place of visual inspections when visual inspections are not possible. There must be at least two photos, one photo of the valid AFC P.O.
Number for the current week with the VIN plate and one photo of the vehicle. The branch will receive a daily email in their branch inbox with their corporately assigned AFC P.O. number. Each number will be valid for [*]. Branch must attach all
inspection photos to the respective paid source document. 

  

	 	9.2.8	[*]. 

  

	 	9.3	Non-Auction Purchase Privileges 

  

	 	9.3.1	[*] = All accounts begin with [*] of the credit line available for non-auction purchases. 

 

	 	9.3.2	For an increase above the [*] non-auction purchase privilege the account must have paid off [*]; at that point the branch must ask their Regional Manager for an
increase recommendation. The Regional Manager forwards their recommendation to the Admin Services Email box for review and approval. Admin Services will send recommendation to the Credit Manager or Director of Credit Services. The Credit Manager or
Director of Credit Services recommends the proper NAP percentage amount and will manually enter into COSMOS. 

  

	 	9.3.3	This privilege is driven by overall Dealer performance and types of vehicles floored. [*]. 

 

	 	9.4	Reminders for Non-Auction Purchases 

  

	 	9.4.1	[*]. 

  

	 	9.4.2	Branches must aggressively follow-up on all outstanding titles from “indirect” advances. Outstanding titles should never age over [*] from the date on which
AFC funds were mailed. If additional time is needed, Regional manager approval is required. 

  
 SCH-I-23

	 	9.4.3	When advancing funding directly to the seller without possession of the title, the seller must be contacted to confirm that the seller has possession of the title and
that the seller will forward the title to AFC upon receipt of the related AFC funding advance. This confirmation with the seller must be documented on the Advance Checklist form noting the following information on the Advance Checklist form: name of
AFC employee confirming, name of representative for the seller with whom confirmation was obtained, phone number used for confirmation, date of confirmation. 

 

	 	9.4.4	If direct funding to seller/lien holder (see section 7.0 below for additional guidelines, seller, etc.) use “I” title status (In Transit to Home Branch).

  

	 	9.4.5	Branches must conduct complete inspections of the collateral in accordance with the Advance Checklist form. 

 

	 	9.4.6	Branches must have original title prior to all direct funding. 

  

	 	9.4.7	Digital pictures are acceptable means of inspection. 

  

	 	9.5	Units with Floorplanned Amounts Over [*] 

  

	 	•	 	 The total floorplan fee for this privilege is [*] for the first contracted term. Regional Manager approval required for units with floorplanned amounts
over [*]. 

  

	 	9.6	Refloorplanning 

  

	 	•	 	 A refloor is defined as the same VIN floored again for the same dealer that previously floored that VIN. Units are only to be refloored if a sale to a
customer is arbitrated, unwound, or the dealer has previously paid off the unit (a period of time greater than [*] should have passed) and would like to put the unit back on the floorplan. [*] approval is required for all refloors. Branch inspection
is also required for all refloors (physical or photo inspections are allowable). Required inspections must take place within [*] business days of the COSMOS transaction date and prior to releasing funds. 

 

	 	9.7	Lien-Holder Direct Pay 

  

	 	9.7.1	Designed to enable AFC to directly fund lien holders on trade-ins floored by AFC dealers. 

 

	 	9.7.2	Pay only the lien holder since this program applies only to trade-ins. 

  

	 	9.7.3	Do not pay a lien holder if the lien holder is an entity related to the flooring dealer like a finance company the flooring dealer operates. Only pay lien holders like
Banks, Credit Unions, Captive Finance Companies (like [*]), Sub prime Lenders (like [*]), and Manufacturers that are not entities related to the flooring dealer. 

 

	 	9.7.4	When flooring the unit in the COSMOS Add Floorplan screen, the “Auction/NAP Source” number must be the source number for the lien holder to be paid. This
source number must be set up by Admin Services prior to entering the new floorplan. The “Vehicle Source” number must be the COSMOS number of the flooring dealer. 

  
 SCH-I-24

	 	9.7.5	Since these Non-Auction Purchases are being funded without possession of the title (or without the lien statement for consumer title holding states) or without the
ownership/registration in Canada, the branch must complete a Title Release Form [*] following all of the steps outlined in [*] that Title Release Form for all Non-Auction Purchase floorings in which AFC directly pays the lien holder upon flooring a
trade-in for an AFC dealer. Upon receipt of title (or upon receipt of the lien statement for consumer title holding states or upon receipt of the ownership/registration in Canada), the branch must ensure that the title is unencumbered (i.e. free of
any liens) and properly reassigned to the flooring AFC dealer. If, upon receipt, a title is encumbered, the branch must ensure they obtain immediate lien release or proof of satisfaction. If, upon receipt, a title is not properly reassigned to the
flooring AFC dealer, the branch must immediately coordinate with the flooring AFC dealer to properly execute the required assignment. 

  

	 	9.7.6	Upon sending the Direct Payment to the lien holder, the branch must also send a completed Lien Holder Direct Pay form [*] along with the check to the lien holder.

  

	 	9.7.7	Immediate pay down by the flooring dealer is required at the time of flooring for any advances over [*]. 

  
 SCH-I-25

	10.0	DEALER QUICK APPS POLICY 

  

	 	10.1	Purpose 

 Quick Apps were
designed to allow the branches to take greater advantage of sales opportunities. A Quick App will allow a dealer to begin flooring on the day of sale and gather full, supporting documentation after the sale. The dealer must leave one check per car
with the branch on sale day. 
 Quick Apps are to be used for special situations which must be pre-approved by the Credit
Department prior the event. The branch will [*] floor vehicles, after which the account will be placed on a no flooring restriction. The account will remain restricted until a complete application package has been received and reviewed at Corporate.

 NOTE: The credit limit established on quick applications will be determined with limited information. The account can be
re-evaluated for a higher credit limit if more information is provided in the completed application package. 
 In no case will a
Quick App line exceed [*] at the discretion of the Credit Manager. 

  
 SCH-I-26

	11.0	CREDIT FILES AND MAINTENANCE 

  

	 	11.1	Credit File Information 

As a matter of policy, all credit files shall be maintained on all loans at the corporate office in electronic format. Each credit file
shall contain: 
  

	 	•	 	 Borrower application for credit (signed and obtained from ALL signers on the account including Guarantors) 

 

	 	•	 	 Credit reports on each Borrower and Guarantor 

  

	 	•	 	 Credit applications review worksheet prepared by the Credit Department 

 

	 	•	 	 Credit review write-up for loans in excess of [*] 

  

	 	•	 	 Copies of [*] for loans in excess of [*] 

  

	 	•	 	 UCC or applicable search 

  

	 	•	 	 Evidence of loan approval 

  

	 	•	 	 Evidence of PMSI filings with other creditors, as necessary (green card or equivalent) 

 

	 	•	 	 Properly executed documents: 

  

	 	•	 	 Promissory Note and Security Agreement 

  

	 	•	 	 Term Sheet 

  

	 	•	 	 Power of Attorney 

  

	 	•	 	 Unconditional Guaranty 

  

	 	•	 	 Other documents necessary to secure AFC’s interest in the loan 

 

	 	•	 	 Any other information deemed necessary by the Credit Department 

Dealer Lot Check Documentation shall be maintained by lot check provider and can be retrieved via the web. 

 

	 	11.2	Manufacturer Agreements 

Following is the policy regarding Manufacturer Agreements, and the procedures which must be completed prior to executing such agreements.
It is the intention of AFC to fully review each manufacturer for financial stability, quality of product and commitment to integrity at a level equal to which AFC is held. In order to accomplish this, the following documents are necessary.

  

	 	•	 	 Financial statements (Audited Statements only): 

  

	 	•	 	 Income statement and balance sheet within the last 90 days 

 

	 	•	 	 Income and balance sheet for prior year-end 

  

	 	•	 	 Tax Returns: 

  

	 	•	 	 Last two years corporate tax returns 

  

	 	•	 	 Miscellaneous: 

  

	 	•	 	 Credit references (minimum of two) 

  

	 	•	 	 Most recent annual report or current business plan 

 The documents above must be submitted to the Credit Manager. The Credit Manager will prepare a complete credit package for Credit Committee review. The package will include a financial analysis,
Lexis/Nexis search or equivalent, reference check, business summary and credit recommendation. Every package required the approval of the Credit Committee. 

  
 SCH-I-27

	12.0	ANNUAL REVIEW POLICY 

  

	 	12.1	Purpose 

 The purpose of
this policy is to ensure that the customer’s credit and account performance has been maintained to AFC standards. All AFC dealer files are reviewed annually by the corporate office. The branch must update all documentation required for initial
approval and submit with recommendation for renewal. Current financial data should be no more than three months old (exceptions must be approved by the Credit Department). Platinum account annual reviews require the approval of the Credit Manager,
and DCS and one of the following: an Independent VP, COO, Financial Controller, VP of Finance, or the President. 
  

	 	12.2	Change in Dealer Credit limit, Terms, and/or Pricing 

 There are cases where a dealer’s Credit limit, Terms, and/or pricing may be changed as a result of the Annual review Process. In such cases the Dealer will need to be re-contracted to reflect their
modified line. 
 Required Documents 
  

			
	 Gold Accounts
	  	 Platinum Accounts

	[*]	  	[*]

  

	 	12.3	Platinum Annuals 

Platinum annuals require a higher sense of urgency due to the increased exposure that AFC has. It is critical that we get these reviews
processed when due, and that delays be minimal. 
  

	 	12.3.1	Delinquent Platinum Annual Package: 

 An aggressive line reduction process will be enforced should a Platinum annual review package be delinquent. 
  

	 	•	 	 The credit limit will be reduced by [*] if the completed annual review package goes beyond [*] from its due date. 

 

	 	•	 	 At the end of the [*] from the review due date, the account will be locked out until we have a complete package for review in the Credit Department.

  

	*	If you desire your Platinum dealer to be dropped to a GOLD dealer [*], please notify us immediately and this will prevent them from being locked out.

  
 SCH-I-28

	13.0	RATE & TERM ADJUSTMENT PROCEDURE 

 The need for rate and term adjustments comes up from time to time. In order to process these requests quickly, please forward the following to the Credit Department: (forms located on the KAR Portal)

  

	 	13.1	Procedure 

  

	 	•	 	 Summary write-up [*] 

  

	 	•	 	 Complete a ROGI form [*] 

  

	 	•	 	 Dealer Profile [*] 

  

	 	•	 	 Obtain the [*] and [*] written approval for the request 

 

	 	•	 	 Complete request in COSMOS computer system 

  

	 	•	 	 Submit all of the above for approval to the Credit Department at Corporate 

 

	 	13.2	Gold account standard term changes [*] can be approved by the credit analyst. Non-standard term changes must be approved by the [*]. 

 

	 	13.3	Platinum account non-standard term changes must be approved by the [*] ([*] can substitute if the [*] is not available), and the [*]. 

  
 SCH-I-29

	14.0	SPECIAL PROGRAMS 

 The
Operations Department has created several special programs to help facilitate our borrowers and branches. These programs allow the branches to better serve their dealers while still upholding the desired credit standards of AFC. The following
programs are explained thoroughly below: 
  

	 	•	 	 Temporary Increase and Overlines 

  

	 	•	 	 Float Sales 

  

	 	•	 	 Rental 

  

	 	14.1	Dealer Temporary Increase and Overline Policies 

 The purpose of these policies is to prevent losses due to over-extended, unmonitored dealers, as well as identify those dealers who may need an increased credit line. It is designed to document and
monitor those dealers who exceed their credit limits. 
 It is the DCS and/or the Credit Committee’s prerogative to restrict
temporary increases in conjunction with line increase or new lines for up to six months. 
  

	 	14.1.1	Temporary Increase Policy 

The purpose of the temporary increase is to accommodate a dealers sporadic buying needs and to allow for increased buying power while a
credit line increase is being processed. Dealers are permitted to go over their credit line by an approved amount for a given period of time. The dealer’s account may fluctuate up and down within that time frame as long as the account balance
remains under the temporary approved credit line. The credit line must be under the standard credit limit by the end of the temporary increase period or the account will be restricted from flooring. 

Approval Levels for Temporary Increase**: 
  

	 	•	 	 Credit Manager – up to [*] 

  

	 	•	 	 VP Finance or DCS – up to [*] 

  

	 	•	 	 VP Finance & DCS – over [*] 

  

	 	•	 	 President can substitute for all of the above 

 ** Requests made by someone other than the Branch Manager must copy the Branch Manager in the email request 
  

	 	14.1.1.1	Maximum term for a temporary increase is [*]. The length of the Seasonal Temp Program (STP), when offered, shall not exceed [*]. 

 

	 	14.1.1.2	The maximum limit for a temporary increase must not exceed the dealers contracted credit limit. 

 

	 	14.1.1.3	On Gold Accounts there can be NO temporary increase granted that would take them over [*] unless required documentation is submitted for a financial review (Platinum
documents) by the Credit Department and Credit Committee. Exceptions to this can only be made by the DCS, VP of Finance, or President. 

  
 SCH-I-30

	 	14.1.1.4	On accounts where the Temporary request is [*], the Dealer must submit a current Balance Sheet and Income Statement (not older than 90 days) for review by the DCS and
VP of Finance, or their replacements. 

  

	 	14.1.1.5	There can be no more than [*] temporary increases within any [*] month period unless approved by the VP finance or the DCS. If none of the above is available, then the
Credit Manager may approve exceptions. Additionally, there can be no more than [*] temporary increase after the STP. For example, [*]. 

  

	 	14.1.2	Overline Policy 

  

	 	•	 	 This should be used when a dealer needs to exceed their credit line for a special, one-day event or situations (such as a special sale). The account
may not fluctuate up and down; once the dealer is approved for the overage, no more vehicles may be floored until the line is paid back to the normal credit limit. No overlines that exceed a temporary increase by [*] will be allowed unless approved
by the DCS, VP of Finance, or President. If none of the above is available, then the Credit Manager may approve the exceptions. 

 Approval Levels for Overline (where no temp. increases are in place)* 
  

	 	•	 	 Branch Personnel ................up to [*] 

 

	 	•	 	 RM & VP.........................up to [*] 

 

	 	•	 	 Assistant Credit Manager....up to [*] 

  

	 	•	 	 Credit Manager................up to [*] 

 

	 	•	 	 VP Finance or DCS............up to [*] 

  

	 	•	 	 VP Finance & DCS............Over [*] 

 

	 	•	 	 President can substitute for all of the above 

 * Based on performance review of a dealer the Credit Department has the authority to decline any request made. 
 The above listed differences are based on an average exchange rate of [*]. The actual exchange rate is changed daily in COSMOS. As a result, the Overline/Temporary Increase amounts will differ from the
maximums listed above. 
  

	 	14.2	Float Sales – Auction Guaranteed (100% or Partial Guaranteed) 

  

	 	14.2.1	Purpose 

  

	 	•	 	 Float sales are special sales held by an auction to increase sales by allowing dealers to purchase vehicles and not pay for them until sold or within a
specified term, whichever comes first. AFC Participates in order to support the auction. 

  
 SCH-I-31

	 	14.2.2	Auction Approval (with exception of ADESA locations) 

  

	 	•	 	 Prior to the initial float sale the host auction must be approved by the Credit Committee. Initial float sale requests must be submitted at least 4
weeks prior to the sale and should have the following documents submitted with the request. 

  

	 	14.2.2.1	Documents attached with Initial Float sale request 

 [*]. 
  

	 	•	 	 Once the host auction is approved by the Credit Committee the auction will be allowed to have float sales for 1 year. In order to continue having float
sales, the auction must be reviewed annually. 

 * NOTE: The limit established by the Credit Committee is the
maximum amount that the auction can extend to the dealers purchasing at the float sale. This dollar amount will be treated as a “credit line” – that is, AFC will only floor cars up to the set dollar amount. The auction can apply for
temporary increases if necessary. 
  

	 	14.2.3	Terms and Conditions 

  

	 	•	 	 The term will be stated on the float sale request form (i.e. 30 to 60 days). 

 

	 	•	 	 [*] in accordance with their standard floorplan contract. 

 

	 	•	 	 [*]. 

  

	 	14.3	Float Sales – [*] AFC Liability 

  

	 	14.3.1	Purpose 

  

	 	•	 	 Float sales are special sales held by an auction to increase sales by allowing dealers to purchase vehicles and not pay for them until sold or within a
specified term, whichever comes first. AFC participates in order to support the auction. 

  

	 	•	 	 All non-contracted dealers who participate must have a credit limit assigned by the Credit Department and execute a float sale agreement prior to floor
planning 

  

	 	14.3.2	Terms and Conditions 

  

	 	•	 	 The term will be stated on the float sale request form (i.e. 30 to 60 days). 

 

	 	•	 	 [*] in accordance with their standard floorplan contract. 

 

	 	•	 	 [*]. 

  

	 	14.4	Rental 

  

	 	14.4.1	Rental Floorplans 

  

	 	•	 	 Rental floorplans operate in much the same way retail floorplans do with a few marked exceptions. In general, rental floorplans are geared toward the
segment of the automotive market in the car rental business. Their fee, interest, and term structure is designed to reflect the nature of the rental industry. Application procedures for rental accounts mirror those of the retail floorplan.

  

	 	•	 	 Although rental accounts differ in term and rate, they are maintained to the same standard as a retail account. Dealers must be reviewed on an annual
basis; credit line reviews for increases are completed as well as periodic lot audits. Additionally, Utilization reports are required on their fleets. 

  
 SCH-I-32

	15.0	LOAN SUPERVISION 

 Each
Regional and Branch Manager has the duty to review the performance of the loans he or she services and to actively follow up if substantial deviations or problems are detected. It is the Regional and Branch Managers’ responsibility to notify
the appropriate individuals, via a potential loss notice, and to develop a plan to correct the problem. 
 The policies listed
below are the policies that the AFC Credit Department is responsible to oversee regarding problem loans: 
  

	 	•	 	 NSF Policy 

  

	 	•	 	 Contract Execution Policy 

  

	 	•	 	 Direct Dealer Contact 

  

	 	•	 	 Credit References 

  

	 	•	 	 AFC Reinstatement Policy 

  

	 	•	 	 Forced Placed Insurance 

  

	 	•	 	 Cashier’s Check 

  

	 	15.1	NSF Policy 

 The
corporate Administrative Services Department receives notification daily of all NSFs. The Administration Department posts the checks in the COSMOS computer system and notifies the branch. COSMOS automatically restricts the account from any further
flooring until the following types of funds are deposited upon which it automatically removes the flooring restriction: 
  

	 	•	 	 Cashier’s Check 

  

	 	•	 	 Certified Check 

  

	 	•	 	 Wire Transfer 

  

	 	15.2	Contract Execution Policy 

The purpose of this memorandum is to establish AFC’s policy regarding the signing, witnessing, and notarizing of AFC contracts,
exhibits, and Amendments. 
  

	 	15.2.1	U.S. Branches/Alberta Dealer 

 All contracts, exhibits, and amendments must be signed by the dealer in the presence of an AFC employee. Each branch must have at least one employee who is a notary, and have access to at least on other
notary who is known by an AFC employee (i.e. an auction employee). These notaries and not others will be used to notarize applicable exhibits and amendments, including guaranties. 

 

	 	15.2.2	Canadian Branches/except Alberta Dealers 

 All contracts, exhibits, and amendments must be signed by the dealer in the presence of two witnesses, at least one of which must be an AFC employee. If an amendment or exhibit that requires the signature
of two witnesses is not signed by both witnesses, it will be returned as incorrect. 

  
 SCH-I-33

	 	15.2.3	All Branches 

 The
Notary/Witnesses must be present at the time of signing. A notarized/witnessed copy of the contract must be given to all signors. Each branch will verify the identity of the parties and compare signatures on the contract with a signature on a
signor’s picture identification in a form of either a driver’s license or passport. Each branch will also be required to write down the photo ID number of the contract signers at the bottom of the dealer contract application page.

  

	 	15.3	AFC Reinstatement Policy 

Reinstatement is a process to provide credit to a dealer that has previously had a potential loss notice (“PLN”) filed or has
previously filed bankruptcy. The process is initiated by operations and requires credit approval. 
  

	 	•	 	 Once an account is in a PLN status it MUST undergo the reinstatement process unless the situation is rectified within [*]-days of filing the PLN. All
accounts above [*] MUST undergo the reinstatement process. No exceptions will be made in the reinstatement process. 

  

	 	15.3.1	Reinstatement Process 

  

	 	15.3.1.1	Branch Manager 

  

	 	•	 	 Recommends reinstatement procedures are activated via an email to the respective Regional Manager describing in detail the reason for the request. The
cause of the potential loss, how the potential loss was resolved (i.e. PIF or PN), the current status of the account, and what the dealer has done to prevent reoccurrence of a potential loss must be a part of this recommendation. The recommended
dollar amount of the reinstatement credit line must be less than the previous credit line. Additionally, if reinstatement is the result of a bankruptcy, then the reinstatement must include the date of the bankruptcy filing, the type of bankruptcy
filed, and the date of discharge or dismissal. 

  

	 	15.3.1.2	Regional Manager 

  

	 	•	 	 Reviews the Branch Manager recommendation. Either concurs or rejects the recommendation. If rejected – the issue is closed. If concurs – the
recommendation is emailed to the division Vice-President with appropriate comments. 

  

	 	15.3.1.3	Division Vice President 

  

	 	•	 	 Reviews the recommendation. Either concurs or rejects the recommendation. If rejected – the issue is closed. If concurs then the recommendation is
emailed to the Collection Manager. 

  

	 	15.3.1.4	Collection Manager 

  

	 	•	 	 Reviews the recommendation and either concurs or rejects with appropriate comments. If concurs then the Collection Manager forwards the recommendation
email to the Director of Collections (if the account has a credit limit greater than [*]) or the Credit Manager. 

  
 SCH-I-34

	 	15.3.1.5	Director of Collections 

  

	 	•	 	 Reviews the recommendations on all accounts above [*]. If concurs, then forwards information to the Credit Manager. 

 

	 	15.3.1.6	Credit Manager 

  

	 	•	 	 Reviews the recommendation and completes the Review Process Matrix. Upon completion, routes to Director of Credit Services for review.

  

	 	15.3.1.7	Director of Credit Services 

  

	 	•	 	 Reviews the file and either concurs or rejects the recommendation. If rejected – the issue is closed. If concurs, then the recommendation and
Matrix is routed with appropriate comments to the VP of Finance. 

  

	 	15.3.1.8	Credit Manager 

  

	 	•	 	 Determines the final decision from all recommendations and notifies the Contracts Department and the Collections Manager. 

 

	 	15.3.1.9	Collection Manager 

  

	 	•	 	 If recommendation is rejected, dealer file is re-filed with the collection accounts. If concurrence, the lockout is removed, the Branch Manager is
notified, and the dealer file is re-filed in the Credit Department as an active dealer. 

  

	 	15.3.2	Requirements 

  

	 	•	 	 AFC Review Worksheet 

  

	 	•	 	 Dealer Request Form (obtained from your Collection Manager) ([*]) 

 

	 	•	 	 Lot Audit Summary 

  

	 	•	 	 If a term or rate change, submit a ROGI and approval by Regional Manager 

File will be reviewed for the following: 
 [*] 
 As a general rule, the standard reinstatement process must be performed when
a PLN has been previously entered regardless of the time that has lapsed since the PLN filing. There will be no waivers allowed. 
  

	 	15.4	Credit References 

 From
time to time, AFC is asked to provide credit references for dealers that we have done business with. In order to protect AFC and its dealers, please forward all inquiries to the corporate Admin Department. 

 

	 	15.5	Dealer Insurance Requirements 

 This process is to ensure that the dealers have the necessary insurance coverage and that AFC is listed as the loss payee on the insurance policy. Verification is mandatory prior to the activation of the
dealers’ credit facilities. Dealers’ accounts will remain inactive until such proof is received and validated by Dealer Guard. 

  
 SCH-I-35

	 	15.5.1	New Application Process 

  

	 	1.	New Application Credit Approved 

  

	 	2.	Branch should send Proof of Insurance (POI) with dealer license, driver’s license, voided check along with articles if the dealer is a corporation or limited
liability company. 

  

	 	a.	POI requirement 

  

	 	i.	Physical damage coverage – minimum [*] of the credit line 

  

	 	ii.	Comprehensive and collision coverage – minimum [*] of credit line 

  

	 	iii.	AFC, AFC Cal LLC, or AFCI listed as loss payee (whichever is applicable for the dealer) 

 

	 	3.	If the Dealer does not have insurance, or desires assistance with insurance coverage, then the Branch should give them the Dealer Guard information and advise them that
they should contact Dealer Guard directly for coverage information. 

  

	 	4.	New Application will be processed and Contract Approved after all contract requirements have been met (regardless of whether or not POI is provided).

  

	 	a.	Credit line will be marked “Pending Doc Sign” and will not have the ability to be activated at the Branch level 

 

	 	b.	Do not provide the dealer availability after the contract is signed. 

  

	 	5.	The Contract Specialist will contact Dealer Guard and provide them with (when received from the Branch): 

 

	 	a.	The POI (located in EDMS) 

  

	 	b.	Dealer number 

  

	 	c.	Dealer name 

  

	 	d.	Dealer address 

  

	 	e.	Credit limit amount 

  

	 	6.	Dealer Guard will email the Contract Department that the dealer’s insurance is compliant, or 

 

	 	a.	The Contract Specialist will notify the branch that the insurance IS compliant 

 

	 	7.	Dealer Guard will email the Contract Department that the dealer’s insurance is NOT compliant, and why; 

 

	 	a.	The Contract Specialist will notify the branch (via detailed email), and the branch should; 

 

	 	i.	Notify the Dealer that their insurance coverage is insufficient and why 

  

	 	ii.	The Branch should follow #3 above 

  

	 	8.	Once we obtain validation of coverage from Dealer Guard, and have the contract documents signed, the Contract Department will activate the dealer’s credit line.

  
 SCH-I-36

	 	15.5.2	Current Dealer Renewal Process 

  

	 	1.	Dealer Guard will send the Admin Department a monthly Renewal spreadsheet. 

 

	 	a.	This file will contain any dealer with insurance overage that is about to expire. 

 

	 	b.	Dealer Guard will send letters to all dealers in the file requesting updated documentation showing that the dealer’s floored inventory is adequately insured.

  

	 	c.	Dealer Guard requests the information to be sent to them within 30 days. 

  

	 	2.	The Admin Department will send the same Renewal Spreadsheet to the branches monthly. 

 

	 	a.	The branches should communicate to their dealers that updated POI is required to maintain an active credit line and to avoid “forced-place” insurance.

  

	 	3.	After 30 days, Dealer Guard will send us an updated spreadsheet showing which dealers have complied, and also those that have not complied with the POI requirements.

  

	 	4.	The Admin Department will lock the dealers who did not supply the new POI to Dealer Guard. 

 

	 	a.	A file will be provided to the Branches showing which dealers were locked. 

 

	 	5.	Dealer Guard will activate “forced-place” insurance on all dealers who have not complied after 30-days. 

 

	 	6.	Those dealers who request that their accounts be unlocked, and “forced-place” insurance coverage removed will have to provide POI first (and the coverage must
be compliant with AFC policy guidelines). 

  

	 	7.	If the Dealer does not have insurance, or desires assistance with insurance coverage, the Branch should give them the Dealer Guard information and advise them that they
should contact Dealer Guard directly for coverage information. 

  

	 	8.	Once we obtain validation of coverage from Dealer Guard, we will unlock the credit line, and have the “forced-place” insurance coverage removed from the
dealer’s line. 

  
 SCH-I-37

	16.0	APPENDIX A 

 The AFC Board
of Directors is as follows: 
  

	 	•	 	 Don Gottwald, President & CEO of AFC 

  

	 	•	 	 Jim Hallett, President & CEO of ADESA Inc. 

  

	 	•	 	 Brian Clingen, President & CEO of KAR Holdings, Inc. 

  
 SCH-I-38

 SCHEDULE II 
 DEPOSIT BANKS AND DEPOSIT ACCOUNTS 
  

			
	 Deposit Bank
	  	Deposit Account
		
	 [*]
	  	[*]
		
	 [*]
	  	[*]
		
	 [*]
	  	[*]
		
		  	[*]

  
 SCH-II-1

 SCHEDULE III 
 NET RECEIVABLES POOL BALANCE CALCULATIONS 
 (see attached) 

  
 SCH-III-1

																											
	 Appendix I - Accompanying Spreadsheet
	  				  		 				 	 
 	In calculating NRPB, there should be no duplication of amounts
previously reduced from a different category.	  
  
	 Net Receivables Pool Balance Calculation
	  				  		 				 				 				  		 			
									
	 Total Pool Receivables
	  		  				  		 				 				 				  	0	 	 	(A)	  
		  		  				  		 				 				 				  	  
	 			
									
	 Specified Ineligble Receivables
	  		  				  		 				 				 				  	0	 	 	(B)	  
		  		  				  		 				 				 				  	  
	 			
				
	 Total Pool Receivables excluding Specified Ineligible Receivables
	   
	 	 	(A) - (B)	  	  	0	 	 	(C)	  
		  		  				  		 				 				 				  	  
	 			
					
	 Title Attached Receivables
	   
	 				 				  	0	 	 	(D)	  
		  		  				  		 				 				 				  	  
	 			
						
	 Receivables subject to Back-up Servicing Fee
	 				 				 	 	(C) - (D)	  	  	0	 	 	(E)	  
		  		  				  		 				 				 				  	  
	 			
	ineligible Receivables	  
	 Non-US residents, governmental, or other ineligible obligors
	   
	 	 	0	  	 	 	f1	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Delinquent Receivables
	  		  				  		 				 	 	0	  	 	 	f2	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Defaulted Receivables
	  		  				  		 				 	 	0	  	 	 	f3	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Obligors with > [*] Defaulted Receivables
	  				  		 				 	 	0	  	 	 	f4	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Short-pays
	  		  				  		 				 	 	0	  	 	 	f5	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 NSF
	  		  				  		 				 	 	0	  	 	 	f6	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Ineligible contract terms
	  		  				  		 				 	 	0	  	 	 	f7	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Receivable > [*] without Curtailment
	  		  				  		 				 	 	0	  	 	 	f8	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Other ineligible vehicle types
	  		  				  		 				 	 	0	  	 	 	f9	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Term > [*] payoff
	  		  				  		 				 	 	0	  	 	 	f10	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Obligors subject to bankruptcy or insolvency proceedings
	   
	 	 	0	  	 	 	f11	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
		  		  				  		 				 	 	Total ineligible Receivables	 	 	 	(sum f)	  	  	0	 	 	(F)	  
		  		  				  		 				 				 				  	  
	 			
	 Eligible Receivables
	  		  				  		 				 				 	 	(E) - (F)	  	  	0	 	 	(G)	  
		  		  				  		 				 				 				  	  
	 			
	Special concentration limit - [*] Day Terms	  
	 [*] Day Terms
	  	 	(i)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 [*] Concentration Percentage x (G)
	  	 	(ii)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Excess Concentration
	  		  				  		 				 	 	if (i) > (ii), then (ii) - (i)	  	  	0	 	 	(H	) 
		  		  				  		 				 				 				  	  
	 			
		  		  				  		 				 				 				  	Reduction to NRPB	 			
	Special concentration limit - Extended Curtailment Receivables	  
	 Extended Curtailment Receivables
	  	 	(i)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Extended Curtailments > [*] days
	  		  	 	(ii)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Extended Curtailments delinquent < [*] days
	  	 	(iii)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
		  		  				  		 				 	 	(ii) + (iii)	  	  	0	 	 	(I)	  
		  		  				  		 				 				 				  	  
	 			
	(i) + (ii) + (iii)	  	  	0	 	 	(T)	  	 				 				  	Reduction to NRPB	 			
		  		  				  	  
	 				 				 				  		 			
	 Discount percentage
	  		  	 	(iv)	  	  	[*]	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Discounted amount
	  		  				  		 	 	(T) x (iv)	  	 	 	#VALUE!	  	 	 	j1	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Value of (T) at [*] advance rate
	  		  	 	(v)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 [*] Concentration percentage x (G)
	  		  	 	(vi)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Excess concentration
	  		  				  	if (v) > (vi), then (vi) -(v)	  	 	 	0	  	 	 	j2	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
		  		  				  		 				 				 	 	(sum j)	  	  	#VALUE!	 	 	(J)	  
		  		  				  		 				 				 				  	  
	 			
		  		  				  		 				 	 	 	 	 				  	Reduction to NRPB	 			
		
	Special concentration limit - Rental Receivables	 	 	 	 
	 Static Rental Receivables Pool Net Loss Rate
	  				  	0.00%	 	 	**	  	 	 
 	Static Rental Receivables
Pool Net Loss Rate	  
  	 	 	Advance rate	  	  		 			
		  		  				  	  
	 				 				 			 	  		 			
		  		  				  	 	 				 	 	 	 	 	 	 	 	  		 			
	** Highest result during last three years	  				  		 				 	 	[*]	  	 	 	[*]	  	  		 			
	 Applicable Rental Receivables Advance Rate
	  				  	[*]	 				 	 	[*]	  	 	 	[*]	  	  		 			
		  		  				  	  
	 				 				 			 	  		 			
		  		  				  		 				 	 	[*]	  	 	 	[*]	  	  		 			
	 Large Obligors with Rental Receivables
	  		  				  		 				 				 				  		 			
	 Individual Rental concentration percentage
	  	 	(i)	  	  	[*]	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Individual Rental concentration limit
	  		  				  		 	 	(i) x (G)	  	 	 	#VALUE!	  	 				  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
		  		  				  	Advance Rate at    	 				 				 				  		 			
	 Obligor Name
	  	Amount	  				  	[*]    	 				 	 	Excess Concentrations	  	 				  		 			
	  
	  				  	 	 				 	  
	  
	 	 				  		 			
	 	  				  	 	 				 	 	 	 	 				  		 			
	 [*]
	  	0	  				  	#VALUE!	 				 	 	#VALUE!	  	 	 	k1	  	  		 			
		  	  
	  				  	  
	 				 	  
	  
	 	 				  		 			
	 [*]
	  	0	  				  	#VALUE!	 				 	 	#VALUE!	  	 	 	k2	  	  		 			
		  	  
	  				  	  
	 				 	  
	  
	 	 				  		 			
	 [*]
	  	0	  				  	#VALUE!	 				 	 	#VALUE!	  	 	 	k3	  	  		 			
		  	  
	  				  	  
	 				 	  
	  
	 	 				  		 			
	 [*]
	  	0	  				  	0	 				 	 	#VALUE!	  	 	 	k4	  	  		 			
		  	  
	  				  	  
	 				 	  
	  
	 	 				  		 			
	 [*]
	  	0	  				  	0	 				 	 	#VALUE!	  	 	 	k5	  	  		 			
		  	  
	  				  	  
	 				 	  
	  
	 	 				  		 			
	 Excess concentration
	  		  				  		 				 				 	 	(sum k)	  	  	#VALUE!	 	 	(K	) 
		  		  				  		 				 				 				  	  
	 			
		  		  				  		 				 				 				  	Reduction to NRPB	 			
	 Rental Receivables
	  		  				  		 				 				 				  		 			
	 All Rental Receivables including large rental Obligors
	  	 	(ii)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Discount percentge (inverse of Appl. Rent. Rcv Adv. Rate)
	  	 	(iii)	  	  	[*]	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Discounted amount
	  		  				  		 	 	(ii) x (iii)	  	 	 	#VALUE!	  	 	 	l1	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
	 Value of (ii) at applicable advance rate
	  	 	z1	  	  	#VALUE!	 	 	[*]	  	 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Individual excess concentrations (not to double count)
	  	 	z2	  	  	#VALUE!	 	 	from (K)	  	 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Rental Receivables subject to concentration limit
	  	 	(iv)	  	  	#VALUE!	 	 	(sum z)	  	 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
									
	 [*] concentration percentage x (G)
	  		  	 	(v)	  	  	0	 				 				 				  		 			
		  		  				  	  
	 				 				 				  		 			
	 Excess concentration
	  		  				  	if (iv) > (v), then (v) - (iv)	  	 	 	#VALUE!	  	 	 	l2	  	  		 			
		  		  				  		 				 	  
	  
	 	 				  		 			
		  		  				  		 				 				 	 	(sum l)	  	  	#VALUE!	 	 	(L)	  
		  		  				  		 				 				 				  	  
	 			
		  		  				  		 				 				 				  	Reduction to NRPB	 			

																															
	 Special concentration limit - Specialty Vehicles
	   

	 Salvage Vehicles
	 		 	 	(i)	  	 	0	 	 	(V)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Discount percentage
	 		 	 	(ii)	  	 	[*]	 				 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Discounted amount
	 		 				 		 	 	(i) x (ii)	  	 	#VALUE!	 	 	m1	  	 				 				 			
		 		 				 		 				 	  
	 				 				 				 			
	 Value of (V) at [*] advance rate
	 		 	 	(iii)	  	 	0	 				 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 [*] concentration percentage x (G)
	 		 	 	(iv)	  	 	0	 				 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Excess concentration
	 		 				 	if (iii) > (iv), then (iv) - (iii)	  	 	0	 	 	m2	  	 				 				 			
		 		 				 		 				 	  
	 				 				 				 			
		 		 				 		 				 		 				 	 	(sum m)	  	 	 	#VALUE!	  	 	 	(M)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
	 Specialty Vehicles
	 	Amount	 	Limit	 	 	Concentration limit	 	 	 	 	Excess concentrations	 	 	 	 	 	 	 	 	 	 	 	 
	 Motorcycles
	 	0	 	 	[*]	  	 	0	 				 	0    	 	 	n1	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 New Cars
	 	0	 	 	[*]	  	 	0	 				 	0    	 	 	n2	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Recreational Vehicles
	 	0	 	 	[*]	  	 	0	 				 	0    	 	 	n3	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Heavy Duty Trucks
	 	0	 	 	[*]	  	 	0	 				 	0    	 	 	n4	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Tractors
	 	0	 	 	[*]	  	 	0	 				 	0    	 	 	n5	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Total (Excluding Salvage)
	 	0	 	 	(W)	  	 		 				 		 				 	 	(sum n)	  	 	 	0	  	 	 	(N)	  
		 	  
	 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
	 Specialty Vehicles concentration limit
	 				 		 				 		 				 				 				 			
	 Total Salvage Vehicles
	 		 	 	z1	  	 	0	 	 	from (V)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Total Salvage Vehicles - Excluded from NRPB
	 	 	z2	  	 	#VALUE!	 	 	from (M)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Total Other Specialty Vehicles
	 		 	 	z3	  	 	0	 	 	from (W)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Total Other Specialty Vehicles - Excluded from NRPB
	 	 	z4	  	 	0	 	 	from (N)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Total Value of Specialty Vehicles included in NRPB
	 				 		 	 	(i)	  	 	#VALUE!	 	 	(sum z)	  	 				 				 			
		 		 				 		 				 	  
	 				 				 				 			
	 [*] Concentration Percentage x (G)
	 				 		 	 	(ii)	  	 	0    	 				 				 				 			
		 		 				 		 				 	  
	 				 				 				 			
	 Excess Concentration
	 		 				 		 				 	if (i) > (ii), then (ii) - (i)	  	 	 	#VALUE!	  	 	 	(O)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
	
	 Normal concentration limit
	   

	 Obligor Name
	 	Amount	 	 	 	 	Concentration limit	 	Limit	 	 	Excess concentrations	 	 	 	 	 	 	 	 	 	 	 	 
	 Obligor 1
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p1	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 2
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p2	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 3
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p3	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 4
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p4	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 5
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p5	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 6
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p6	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 7
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p7	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 8
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p8	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 9
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p9	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Obligor 10
	 		 				 	0	 	 	[*] * (G)	  	 	0    	 	 	p10	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
		 		 				 		 				 		 				 	 	(sum p)	  	 	 	0	  	 	 	(P)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
	
	 Special concentration Limit - Special Obligors
	   

	 Obligor Name
	 	Amount	 	 	 	 	Concentration Limit	 	Limit	 	 	Excess concentrations	 	 	 	 	 	 	 	 	 	 	 	 
	 Special Obligor 1
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q1	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 2
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q2	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 3
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q3	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 4
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q4	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 5
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q5	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 6
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q6	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 7
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q7	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 8
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q8	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 9
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q9	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 10
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	q10	  	 				 				 			
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
		 		 				 		 				 		 				 	 	(sum q)	  	 	 	0	  	 	 	(Q)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
	All Obligors exceeding [*] Normal concentration limit (aggregate concentration limit [*])	  	 		 				 				 				 			
	 Obligor Name
	 	Amount	 	 	 	 	Concentration Limit	 	Limit	 	 	Value of Receivables for
Obligors 
exceeding [*]	 	 	 	 	 	 	 	 	 	 	 	 
	 Special Obligor 1
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r1 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 2
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r2 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 3
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r3 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 4
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r4 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 5
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r5 (limited to [*})	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 6
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r6 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 7
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r7 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 8
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r8 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 9
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r9 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
	 Special Obligor 10
	 	0	 				 	0	 	 	[*] * (G)	  	 	0    	 	 	r10 (limited to [*])	  
		 	  
	 				 	  
	 				 	  
	 				 				 				 			
										
	 Total of Special Obligors exceeding [*]
	 		 	 	(i)	  	 	0	 	 	(sum r)	  	 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 [*] concentration percentage x (G)
	 		 	 	(ii)	  	 	0	 				 		 				 				 				 			
		 		 				 	  
	 				 		 				 				 				 			
	 Excess concentration
	 		 				 		 				 	if (i) > (ii), then (ii) - (i)	  	 	 	0	  	 	 	(R)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
		 		 				 		 				 		 				 				 	 	Reduction to NRPB	  	 			
								
	 Total of discounts and excess concentrations
	 				 		 				 		 	 	(Sum H through R)	  	 	 	#VALUE!	  	 	 	(S)	  
		 		 				 		 				 		 				 				 	  
	  
	 	 			
								
	 Net Receivables Pool Balance
	 				 		 				 		 	 	(G) + (S)	  	 	 	#VALUE!	  	 			
		 		 				 		 				 		 				 				 	  
	  
	 	 			

 SCHEDULE IV 
 ELIGIBLE CONTRACTS 
 Eligible contracts are available upon request. 

  
 SCH-IV-1

 SCHEDULE V 
 TAX MATTERS 
 None. 

  
 SCH-V-1

 SCHEDULE VI 
 COMPETITOR FINANCIAL INSTITUTIONS 
 [*]. 

  
 SCH-VI-1

 ANNEX A 
 FORM PURCHASE NOTICE 
 [Date] 

 

					
	 BMO Capital Markets

115 S. LaSalle Street, 13W
 Chicago, Illinois
60603
 Attention: Conduit Management
	 	 Deutsche Bank AG
 60 Wall
Street, 19th Floor

New York, NY 10005
 Attn: DB Funding &
Admin
	 	 Barclays Bank PLC
 745
Seventh Avenue
 New York, NY 10019

Attn: Luis Nieves

 Ladies and
Gentlemen: 
 Reference is hereby made to the Fourth Amended and Restated Receivables Purchase Agreement, dated as of April
[26], 2011 (as heretofore amended or supplemented, the “Receivables Purchase Agreement”), among AFC Funding Corporation (the “Seller”), Automotive Finance Corporation, as servicer (the “Servicer”),
Fairway Finance Company, LLC, Monterey Funding LLC, and Salisbury Receivables Company, LLC as Purchasers and such other entities from time to time as may become purchasers thereunder, BMO Capital Markets Corp., as Agent and Purchaser Agent for
Fairway Finance Company, LLC, Deutsche Bank AG as Purchaser Agent for Monterey Funding LLC, and Barclays Bank PLC as Purchaser Agent for Salisbury Receivables Company LLC. Capitalized terms used in this Purchase Notice and not otherwise defined
herein shall have the meanings assigned thereto in the Receivables Purchase Agreement. 
 As provided on the Purchase/Paydown
Request dated as of today’s date, this letter constitutes a Purchase Notice pursuant to Section 1.2(a) of the Receivables Purchase Agreement. Seller desires to sell a Participation on [next Business Day] for an aggregate
purchase price of $[            ]. Seller requests an initial Yield Period of 1 to 90 days for such Participation. 

Seller hereby represents and warrants as of the date hereof, and as of the date of Purchase, as follows: 

(i) the representations and warranties contained in Exhibit III to the Receivables Purchase Agreement are true
and correct on and as of such date of such Purchase as though made on and as of such date; 
 (ii) no event has
occurred and is continuing, or would result from such Purchase, that constitutes a Termination Event or Unmatured Termination Event; 
 (iii) the sum of the aggregate of the Participations does not exceed 100%; 
 (iv) the amount on deposit in the Cash Reserve Account is equal to or greater than the Cash Reserve. 
 IN WITNESS WHEREOF, the undersigned has caused this Purchase Notice to be executed by its duly authorized officer as of the date first above written. 

 

			
	AFC FUNDING CORPORATION
		
	By:	 	  

			
	Name Printed:	 	[Authorized signer]

			
	Title:	 	[Authorized signer title]

  
 Annex A-1

 ANNEX B 
 FORM OF SERVICER REPORT 
 (see attached) 

  
 Annex B-1

																					
	AFC FUNDING CORPORATION	 	 	  	 	 	 	 	 	 	 	 	 	 	 	 	 
	Servicer Report	 		  	 Dated:
	 		 		 		 	30-Apr-11	 		 	Inputs
	 	 	 	 	 	 	 	  	 # of Days in Month:
	 	 	 	 	 	 	 	30	 	 	 	 
						
	Fourth Amended and Restated Receivables Purchase Agreement dated as of April 26, 2011 among AFC FUNDING	 		 		 		 		 	
	CORPORATION as Seller, AUTOMOTIVE FINANCE CORPORATION, as Servicer, FAIRWAY FINANCE COMPANY, LLC	 		 		 		 		 	
	,MONTEREY FUNDING, and SALISBURY RECEIVABLES COMPANY as Purchasers, and BMO Capital Markets, Deutsche Bank, and Barclays Bank as Purchaser Agents	 		 		 		 	
									
		 	Part I.	 	Purchase Limit, Investment Amount, and Participation as of	 		 		 		 	30-Apr-11	 		 	
		 		 		 		  		 	Fairway	 	Monterey	 	Salisbury	 	Total	 		 	
		 	 A.
	 	Purchase Limit	 		  		 		 		 		 	 	 		 	
		 		 	Purchase Limit %	 		  		 		 		 		 		 		 	
		 	 B.
	 	Aggregate Investment Amount (Excludes Cash Wired from [*])	 		 		 		 		 		 	
		 	 C.
	 	Cash wired from Collection Account	 		 		 		 		 		 	
		 	 D.
	 	Aggregate Investment Amount (Net of Cash Wired from [*])	 		 		 		 		 		 	
		 	 E.
	 	Aggregate Loss Reserve Calculation	 		  		 		 		 		 		 		 	
		 	 F.
	 	Collateral Balance = (Net Receivables Pool Balance + Excess in Liq. Acct )	 		 		 		 		 		 	
		 	 G.
	 	Participation = [(D+E /F)]	 		 		 		 		 		 	
									
		 	Part II.	 	Receivables Rollforward and Aging Report	 		 		 		 		 		 	
									
		 		 	See Section I details on Receivables Pool Balance calculated as of the Month End Date.	 		 		 		 		 		 	
									
		 	Part III.	 	Concentration Limits and Net Portfolio Balance	 		 		 		 		 		 	
									
		 		 	See Section II details on Receivables Pool Balance calculated as of the Month End Date.	 		 		 		 		 		 	
									
		 	Part IV.	 	Required Reserves (Section III)	 	$	 		 	%	 		 		 	
										
		 	 A.
	 	Loss Reserve (incl Cash Res)	 	Loss Reserves and Percentage	 		 		 		 		 		 	
		 		 		 	Minimum Level (Min % * Investment)	 		 		 		 		 		 	
										
		 	 B.
	 	Cash Reserve (part of LR)	 	Minimum Level (Min % * Investment)	 		 		 		 		 		 	
											
		 	Part V.	 	Performance Triggers (Section IV)	 		  		 	Actual	 		 	Trigger Level	 		 		 	
											
		 	 A.
	 	[*]	 		  		 		 		 		 		 		 	
		 		 		 		  		 		 		 		 	In Compliance	 		 	
		 	 B.
	 	[*]	 		  		 		 		 		 	In Compliance	 		 	
		 	 C.
	 	[*]	 		  		 		 		 		 	In Compliance	 		 	
		 	 D.
	 	[*]	 		  		 		 		 		 	In Compliance	 		 	
		 	 E.
	 	[*]	 		  		 		 		 		 	In Compliance	 		 	
		 	 F.
	 	[*]	 		  		 		 		 		 	In Compliance	 		 	
		 	 G.
	 	Net Spread Test	 		  		 		 		 		 	In Compliance	 		 	
		 	 H.
	 	[*]	 		  		 		 		 		 		 		 	
		 	 I.
	 	[*]	 		  		 		 		 		 		 		 	
									
		 	Part VI.	 	Financial Triggers & Covenants (Section V)	 	Actual	 		 	Trigger Level	 		 		 	
		 		 		 		  		 		 		 		 		 		 	
		 	 A.
	 	Bankruptcy	 		  		 	 	 		 		 	In Compliance	 		 	
		 	 B.
	 	Material Adverse Change	 		  		 	 	 		 		 	In Compliance	 		 	
		 	 C.
	 	IRS section 6323 Lien	 		  		 	 	 		 		 	In Compliance	 		 	

																							
		 	 D.
	 	Change in Control	 		 		 	 	 		 		 	In Compliance	 		 		 	
		 	 E.
	 	KAR Financial Covenant Violation	 		 		 	 	 		 		 	In Compliance	 		 		 	
		 	 F.
	 	AFC owns 100% of Seller’s Equity which represents [*] of NRPB	 	 	 		 		 	In Compliance	 		 		 	
		 	 G.
	 	No credit risk mitigation, short position, or other hedges with respect to AFC’s equity interest	 	 	 		 		 	In Compliance	 		 		 	
		 	 H.
	 	Cross Acceleration of Corporate Debt (Seller or AFC > $ MM; KAR > $ MM)	 	 	 		 		 	In Compliance	 		 		 	
		 	 I.
	 	AFC consolidated cash equivalents are at least $ MM (incl $ MM unrestricted cash)	 		 		 		 	In Compliance	 		 		 	
		 	 J.
	 	Level One Trigger Event	 		 		 		 		 		 	In Compliance	 		 		 	
		 	 K.
	 	Servicer’s Debt + Investment Limitation	 		 		 		 	In Compliance	 		 		 	
		 	 L.
	 	Tangible Net Worth Test (AFC)	 		 		 		 		 		 	In Compliance	 		 		 	
		 	 M.
	 	Tangible Net Worth Test (Seller)	 		 		 		 		 		 	In Compliance	 		 		 	
		 	 N.
	 	Leverage Ratio (Debt / Equity) of AFC - Quaterly	 		 		 		 	In Compliance	 		 		 	
												
		 	Part VII.	 	Reporting Requirements	 		 		 	Timing	 		 		 		 		 		 	
												
		 	 A.
	 	Reporting Period	 		 		 	[*]	 		 		 		 		 		 	
		 	 B.
	 	Report Dates	 		 		 	[*]	 		 		 		 		 		 	
		 	 C.
	 	Quarterly Financial Statements - Seller & Servicer	 	[*]	 		 		 		 		 		 	
		 	 D.
	 	Annual Financial Statements - Seller & Servicer	 	[*]	 		 		 		 		 		 	
		 	 E.
	 	KAR Compliance Certificate	 		 		 	[*]	 		 		 		 		 		 	
		 	 F.
	 	Material Changes to Servicer Report	 		 		 	[*]	 		 		 		 		 		 	
												
		 	Part VIII.	 	Representations & Warranties	 		 		 		 		 		 		 		 		 	
		 	  
 The Servicer certifies the figures on the Servicer
Report to be true and complete, no Termination Events as forth in Exhibit V have occurred, and the representations and warranties set forth in Exhibit III of the Receivables Purchase Agreement are true and correct as of the date
hereof.
	 		 		 		 	
		 	(Delivered by the Servicer, on behalf of the Seller pursuant to Exhibit IV(l) of the Receivables Purchase Agreement)	 		 		 		 	
									
		 	Automotive Finance Corporation, as Servicer	 		 		 		 		 		 		 	
												
		 	By:	 	 	 	 	 	 	 		 		 		 		 		 		 	
											
		 	Name Printed:	 	 	 	 	 		 		 		 		 		 		 	
												
		 	Title:	 	 	 	 	 	 	 		 		 		 		 		 		 	
												
		 	Date:	 	 	 	 	 	 	 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 		 		 	
	 	 	SECTION I - Receivables Information	 	 	 		 		 		 		 		 		 		 	
												
		 	 I.
	 	Receivables Rollforward	 		 		 		 		 		 		 		 		 	
		 		 		 		 		 	Current Month  	 		 	Mar-11	 	Feb-11	 	Jan-11	 	Dec-10	 	Nov-10
		 	 A)
	 	Beginning Principal Balance	 		 		 	 	 		 	 	 		 	 	 		 	 
		 	 B)
	 	Pre-existing Specialty Vehicle Receivables	 		 		 	 	 		 	 	 	 	 	 	 	 	 	 
		 	 C)
	 	Receivables Floorplanned	 		 		 	 	 		 	 	 		 	 	 		 	 
		 	 D)
	 	Principal Receipts	 		 		 	 	 		 	 	 	 	 	 	 	 	 	 
		 	 E)
	 	Write-Offs	 		 		 	 	 		 	 	 		 	 	 		 	 
		 	 F)
	 	A/R Converted to Notes	 		 		 	 	 		 	 	 	 	 	 	 	 	 	 
		 	 G)
	 	Ending Principal Balance [A + B - C - D - E]	 	—  	 		 	—  	 	—  	 	—  	 	—  	 	—  

																					
		 		 	Finance Charge Collections	 		 		 		 		 		 		 		 	
		 	 G)
	 	Interest	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 H)
	 	Floorplan Fee	 		 		 	 	 		 	 	 		 	 	 	 
		 	 I)
	 	Other Fees	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 J)
	 	Finance Charge Collections	 		 		 	 	 		 	 	 	 	 	 	 	 
											
		 		 	Write-Offs	 		 		 		 		 		 		 		 	
		 	 K)
	 	Total Write-Offs	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 L)
	 	Write-Offs > [*] Days	 		 		 	 	 		 	 	 		 	 	 	 
		 	 M)
	 	Total Converted to Notes	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 N)
	 	Converted to Notes > [*] Days	 		 		 	 	 		 	 	 	 	 	 	 	 
											
		 	 II.
	 	Receivables Aging Report	 		 		 		 		 		 		 		 	
		 	 A)
	 	Current	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 B)
	 	[*] Days Past Due	 		 		 	 	 		 	 	 		 	 	 	 
		 	 C)
	 	[*] Days Past Due	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 D)
	 	[*] Days Past Due	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 E)
	 	[*] Days Past Due	 		 		 	 	 		 	 	 	 	 	 	 	 
		 	 F)
	 	[*] Days Past Due	 		 		 	 	 		 	 	 	 	 	 	 	 
		 		 	Total Receivables [A + B + C + D + E + F]	 		 		 		 		 		 		 		 	
		 		 	Average Maturity (ref purposes only)	 		 		 		 		 		 		 		 	
		 		 		 	Difference	 		 		 		 		 		 		 	
											
		 	III.	 	Payment Rate / Implied Turnover	 		 		 		 		 		 		 		 	
		 	 A)
	 	[*]	 		 		 	 	 		 	Specified Ineligible Receivables	 	
		 	 B)
	 	[*]	 		 		 	 	 		 	(Assets sold to AFC Funding Corp., but not eligible	 	
		 		 	[*]	 		 		 	 	 		 	for the Net Receivables Pool Balance. These items	 	
		 		 		 		 		 		 		 	are not included in the rollforward and are not aged)	 	
		 		 		 		 		 		 		 		 	
		 	V.	 	Delinquent Receivables	 		 		 	 	 		 	Affiliated Obligors	 		 	—  
		 		 	Receivables [*] days past due	 		 		 		 		 		 		 		 	—  
		 	VI.	 	Defaulted Receivables	 		 		 		 		 		 		 		 	—  
		 		 	Receivables [*] days past due	 		 		 	 	 		 		 		 		 	
											
		 	VII.	 	Obligor Information	 		 		 		 		 		 		 		 	
		 		 	Number of Active Dealers	 		 		 	 	 		 		 		 		 	
		 		 	Average Dealer Size	 		 		 	 	 		 		 		 		 	
		 		 		 		 		 		 		 		 	
	 	 	SECTION II - Concentrations & NRPB	 		 		 		 		 		 		 	
		 		 		 		 		 		 	In calculating NRPB, there should be no duplication of amounts previously reduced from a different category.	 	
											
		 		 	Net Receivables Pool Balance Calculation	 		 		 		 		 		 		 		 	
											
		 		 	Total Pool Receivables	 		 		 		 		 		 	  
	 	(A)	 	
											
		 		 	Specified Ineligble Receivables	 		 		 		 		 		 	  
	 	(B)	 	
									
		 		 	Total Pool Receivables excluding Specified Ineligible Receivables	 		 		 	(A) - (B)	 	  
	 	(C)	 	
											
		 		 	Title Attached Receivables	 		 		 		 		 		 	  
	 	(D)	 	

																															
	Receivables subject to Back-up Servicing Fee	  	 				 				 	 	(C) - (D)	  	 	 	 	(E)	 	Prior ME Recvs subj:
		
	 ineligible Receivables
	 	
	Non-US residents, governmental, or other ineligible obligors	  	 				 				 	 	f1	  	 		 		 	
	Delinquent Receivables	 				 				 				 				 	 	 	 	 	 	f2	  	 		 		 	
	Defaulted Receivables	  	 				 				 	 	f3	  	 		 		 	
	Obligors with > [*] Defaulted Receivables	  	 				 	 	 	 	 	 	f4	  	 		 		 	
	Short-pays	 				 				 				 				 				 	 	f5	  	 		 		 	
	NSF	 				 				 				 				 	 	 	 	 	 	f6	  	 		 		 	
	Ineligible contract terms	  	 				 				 	 	f7	  	 		 		 	
	Receivable > [*] without Curtailment	  	 				 	 	 	 	 	 	f8	  	 		 		 	
	Other ineligible vehicle types	  	 				 				 	 	f9	  	 		 		 	
	Term > [*] payoff	 				 				 				 				 	 	 	 	 	 	f10	  	 		 		 	
	Obligors subject to bankruptcy or insolvency proceedings	  	 				 	 	 	 	 	 	f11	  	 		 		 	
		 				 				 				 	 	Total ineligible Receivables	  	 	 	(sum f)	  	 	0	 	(F)	 	
							
	Eligible Receivables	  	 				 				 	 	(E) - (F)	  	 	0	 	(G)	 	
		
	 Special concentration limit - [*] Day Terms
	 	
	[*] Day Terms	 				 	 	(i)	  	 	 	 	 	 				 				 				 		 		 	
	[*] Concentration Percentage x (G)	  	 	 	(ii)	  	 	 	0	  	 				 				 				 		 		 	
	Excess Concentration	  	 				 				 				 	 	if (i) > (ii), then (ii) - (i)	  	 	0	 	(H)	 	
		 				 				 				 				 				 				 	Reduction to NRPB	 		 	
		
	 Special concentration limit - Extended Curtailment
Receivables
	 	
	Extended Curtailment Receivables	 				 	 	(i)	  	 	 	 	 	 				 				 				 		 		 	
	Extended Curtailments > [*] days	 				 	 	(ii)	  	 				 				 				 				 		 		 	
	Extended Curtailments delinquent < [*] days	  	 	 	(iii)	  	 	 	 	 	 				 				 				 		 		 	
		 				 				 				 				 				 	 	(ii) + (iii)	  	 	0	 	(I)	 	
		 				 	 	(i) + (ii) + (iii)	 	 	 	0	  	 	 	(T)	  	 				 				 	Reduction to NRPB	 		 	
	Discount percentage	 				 	 	(iv)	  	 	 	 	 	 				 				 				 		 		 	
	        Discounted amount	 				 				 				 	 	(T) x (iv)	  	 	 	0	  	 	 	j1	  	 		 		 	
	Value of (T) at % advance rate	 				 	 	(v)	  	 	 	0	  	 				 				 				 		 		 	
	.0% Concentration percentage x (G)	 				 	 	(vi)	  	 	 	0	  	 				 				 				 		 		 	
	        Excess concentration	 				 	 	if (v) > (vi), then (vi) - (v)	  	 	 	0	  	 	 	j2	  	 		 		 	
		 				 				 				 				 				 	 	(sum j)	  	 	0	 	(J)	 	
		 				 				 				 				 				 				 	Reduction to NRPB	 		 	
								
	Static Rental Recv Pool Net Loss Rate	  	 				 				 				 				 		 		 	
	 	 	 	Jul-Dec 2010	  	 	 	Jan-Jun 2010	  	 	 	Jul-Dec 2009	  	 	 	Jan-Jun 2009	  	 	 	Jul-Dec 2008	  	 	 	Jan-Jun 2008	  	 		 		 	
	Total Write offs	 				 			 	 				 			 	 				 				 		 		 	
	 Recoveries
	 				 				 				 				 				 				 		 		 	
	 Net Write-offs
	 				 				 				 				 				 				 		 		 	
	Agg Initial Pool Bal (Rental Recvs)	 				 			 	 				 			 	 				 				 		 		 	
	 Net Loss Rate
	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	0.00	% 	 	 	#DIV/0!	  	 	 	#DIV/0!	  	 		 		 	
		 	 	pass	  	 	 	pass	  	 	 	pass	  	 	 	pass	  	 	 	#DIV/0!	  	 	 	#DIV/0!	  	 		 		 	

																			
	 Special concentration limit - Rental Receivables

	Static Rental Recivables Pool Net Loss Rate	 	.  	 	**	 	Static Rental	 	 	 		 	
	** Highest result during last three years	 		 		 	Receivables Pool	 	Advance rate	 		 	
	Applicable Rental Receivables Advance Rate	 	0.00%	 		 	[*]	 	[*]	 		 	
		 		 		 		 		 		 	[*]	 	[*]	 		 	
		 		 		 		 		 		 	[*]	 	[*]	 		 	
									
	Large Obligors with Rental Receivables	 		 		 		 		 		 		 		 	
	Individual Rental concentration percentage	 		 	(i)	 	 	 		 		 		 		 	
	Individual Rental concentration limit	 		 		 		 	(i) x (G)	 	0	 		 		 	
		 		 		 		 		 		 		 		 		 	
		 		 		 		 	Advance Rate at	 		 		 		 		 	
	Obligor Name	 	Amount	 		 		 	0.00%	 		 	Excess	 		 		 	
	Large Rental Obligor 1	 	 	 		 		 	0	 		 	0	 	k1	 		 	
	Large Rental Obligor 2	 	 	 		 		 	0	 		 	0	 	k2	 		 	
	Large Rental Obligor 3	 	 	 		 		 	0	 		 	0	 	k3	 		 	
	Large Rental Obligor 4	 	 	 		 		 	0	 		 	0	 	k4	 		 	
	Large Rental Obligor 5	 	 	 		 		 	0	 		 	0	 	k5	 		 	
	        Excess concentration	 		 		 		 		 		 		 	(sum k)	 	0	 	(K)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
										
	Rental Receivables	 		 		 		 		 		 		 		 		 	
	All Rental Receivables including large rental Obligors	 		 		 	(ii)	 	 	 		 		 		 		 	
										
	Discount percentge (inverse of Appl. Rent. Rcv Adv. Rate)	 		 		 	(iii)	 		 		 		 		 		 	
	Discounted amount	 		 		 		 		 	(ii) x (iii)	 	0	 	l1	 		 	
									
	Value of (ii) at applicable advance rate	 		 	x1	 	 	 	0.00%	 		 		 		 	
	Individual excess concentrations (not to double count)	 		 		 	x2	 	 	 	from (K)	 		 		 		 	
	Rental Receivables subject to concentration limit	 		 	(iv)	 	 	 	(sum x)	 		 		 		 	
									
	.0% concentration percentage x (G)	 		 	(v)	 	 	 		 		 		 		 	
	        Excess concentration	 		 		 		 		 	if (iv) > (v), then (v) -(iv)	 	0	 	l2	 		 	
		 		 		 		 		 		 		 	(sum l)	 	0	 	(L)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
	
	 Special concentration limit - Specialty Vehicles

	Salvage Vehicles	 		 	(i)	 	 	 	(V)	 		 		 		 	
	Discount percentage	 		 		 	(ii)	 	 	 		 		 		 		 	
	        Discounted amount	 		 		 		 		 	(i) x (ii)	 	0	 	m1	 		 	
	Value of (V) at [*] advance rate	 		 	(iii)	 	0	 		 		 		 		 	
	.0% concentration percentage x (G)	 		 	(iv)	 	0	 		 		 		 		 	
	        Excess concentration	 		 		 		 	if (iii) > (iv), then (iv) - (iii)	 	0	 	m2	 		 	
		 		 		 		 		 		 		 	(sum m)	 	0	 	(M)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
										
	Specialty Vehicles	 	Amount	 	Limit	 	 	 	Concentration limit	 		 	Excess concentrations	 		 		 	
	Motorcycles	 	 	 		 		 	0	 		 	0	 	n1	 		 	
	New Cars	 	 	 		 		 	0	 		 	0	 	n2	 		 	

																			
	Recreational Vehicles	 	 	 		 		 	0	 		 	0	 	n3	 		 	
	Heavy Duty Trucks	 	 	 		 		 	0	 		 	0	 	n4	 		 	
	Tractors	 	 	 		 		 	0	 		 	0	 	n5	 		 	
	Total (Excluding Salvage)	 	0	 	(W)	 		 		 		 		 	(sum n)	 	0	 	(N)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
	Specialty Vehicles concentration limit	 		 		 		 		 		 	
	Total Salvage Vehicles	 		 		 	(i)	 	0	 	from (V)	 		 		 		 	
	Total Salvage Vehicles - Excluded from NRPB	 		 	(ii)	 	0	 	from (M)	 		 		 		 	
	Total Other Specialty Vehicles	 		 	(iii)	 	0	 	from (W)	 		 		 		 	
	Total Other Specialty Vehicles - Excluded from NRPB	 		 	(iv)	 	0	 	from (N)	 		 		 		 	
	Total Value of Specialty Vehicles included in NRPB	 		 		 	(iv)	 	0	 		 		 	
	[*] Concentration Percentage x (G)	 		 		 		 	(v)	 	0	 		 		 	
	        Excess Concentration	 		 		 		 		 		 	if (iv) > (v), then (v) - (iv)	 	0	 	(O)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
	
	 Normal Concentration limit

										
	 Obligor Name
	 	 Amount
	 	 	 	 	 	 Concentration limit
	 	 Limit
	 	 Excess
concentrations
	 	 	 	 	 	 
	Large obligor 1	 	 	 		 		 	0	 		 	0	 	p1	 		 	
	Large obligor 2	 	 	 		 		 	0	 		 	0	 	p2	 		 	
	Large obligor 3	 	 	 		 		 	0	 		 	0	 	p3	 		 	
	Large obligor 4	 	 	 		 		 	0	 		 	0	 	p4	 		 	
	Large obligor 5	 	 	 		 		 	0	 		 	0	 	p5	 		 	
	Large obligor 6	 	 	 		 		 	0	 		 	0	 	p6	 		 	
	Large obligor 7	 	 	 		 		 	0	 		 	0	 	p7	 		 	
	Large obligor 8	 	 	 		 		 	0	 		 	0	 	p8	 		 	
	Large obligor 9	 	 	 		 		 	0	 		 	0	 	p9	 		 	
	Large obligor 10	 	 	 		 		 	0	 		 	0	 	p10	 		 	
		 		 		 		 		 		 		 	(sum p)	 	0	 	(P)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
	
	 Special Concentration limit - Special Obligors

										
	 Obligor Name
	 	 Amount
	 	 	 	 	 	 Concentration Limit
	 	 Limit
	 	 Excess
concentrations
	 	 	 	 	 	 
	Special Obligor 1	 	 	 		 		 	0	 		 	0	 	q1	 		 	
	Special Obligor 2	 	 	 		 		 	0	 		 	0	 	q2	 		 	
	Special Obligor 3	 	 	 		 		 	0	 		 	0	 	q3	 		 	
	Special Obligor 4	 	 	 		 		 	0	 		 	0	 	q4	 		 	
	Special Obligor 5	 	 	 		 		 	0	 		 	0	 	q5	 		 	
	Special Obligor 6	 	 	 		 		 	0	 		 	0	 	q6	 		 	
	Special Obligor 7	 	 	 		 		 	0	 		 	0	 	q7	 		 	
	Special Obligor 8	 	 	 		 		 	0	 		 	0	 	q8	 		 	
	Special Obligor 9	 	 	 		 		 	0	 		 	0	 	q9	 		 	
	Special Obligor 10	 	 	 		 		 	0	 		 	0	 	q10	 		 	
		 		 		 		 		 		 		 	(sum q)	 	0	 	(Q)
		 		 		 		 		 		 		 		 	Reduction to NRPB	 	
	All Obligors exceeding [*] Normal Concentration limit (aggregate concentration limit [*])	 		 	Value of Recivables for	 		 		 	
	Obligor Name	 	Amount	 		 		 	Concentration Limit	 	Limit	 	Obligors exceeding [*]	 		 		 	
	Special Obligor 1	 	0	 		 		 	0	 		 	0	 	r1 (limited to [*])	 		 	

																									
		 		 	Special Obligor 2	 		 	0	 		 	0	 		 	0	 	r2 (limited to [*])	 		 		 	
		 		 	Special Obligor 3	 		 	0	 		 	0	 		 	0	 	r3 (limited to [*])	 		 		 	
		 		 	Special Obligor 4	 		 	0	 		 	0	 		 	0	 	r4 (limited to [*])	 		 		 	
		 		 	Special Obligor 5	 		 	0	 		 	0	 		 	0	 	r5 (limited to [*])	 		 		 	
		 		 	Special Obligor 6	 		 	0	 		 	0	 		 	0	 	r6 (limited to [*])	 		 		 	
		 		 	Special Obligor 7	 		 	0	 		 	0	 		 	0	 	r7 (limited to [*])	 		 		 	
		 		 	Special Obligor 8	 		 	0	 		 	0	 		 	0	 	r8 (limited to [*])	 		 		 	
		 		 	Special Obligor 9	 		 	0	 		 	0	 		 	0	 	r9 (limited to [*])	 		 		 	
		 		 	Special Obligor 10	 		 	0	 		 	0	 		 	0	 	r10 (limited to [*])	 		 		 	
											
		 		 	Total of Special Obligors exceeding .0%	 	(i)	 	0	 	(sum r)	 		 		 		 		 	
		 		 	.0% concentration percentage x (G)	 	(ii)	 	0	 		 		 		 		 		 	
		 		 	        Excess concentration	 		 		 		 		 	if (i) > (ii), then (ii) - (i)	 	0	 	(R)	 	
		 		 		 		 		 		 		 		 		 		 	Reduction to NRPB	 		 	
										
		 		 	Total of discounts and excess concentrations	 		 		 		 	(Sum H through R)	 	0	 	(S)	 	
													
		 		 		 		 		 		 		 		 		 		 	 	 		 	
		 		 	Net Receivables Pool Balance	 		 		 		 		 	(G) + (S)	 	0	 		 	
		 		 		 		 		 		 		 		 		 		 		 		 	
	SECTION III - Required Reserves	 	 	 		 		 		 		 		 		 	
		 		 		 		 		 		 		 		 		 		 		 		 	
		 	A)	 	[*]	 		 		 		 		 		 		 	0.00%	 		 	Month Delinquency 
Ratio
		 	B)	 	[*]	 		 		 		 		 		 		 	0.00%	 		 	Apr-11	 	 
		 	C)	 	Loss Reserve Ratio (Calculated Below)	 		 		 		 		 	#DIV/0!	 		 	Mar-11	 	 
		 	D)	 	Minimum Loss Percentage	 		 		 		 		 	 	 		 	Feb-11	 	 
		 	E)	 		 		 	Loss Percentage [*]	 		 		 		 		 	#DIV/0!	 		 	Jan-11	 	 
		 		 		 		 		 		 		 		 		 		 		 	Dec-10	 	 
		 		 		 		 	Loss Percentage (1-Loss Percentage)	 		 		 		 	#DIV/0!	 		 	Nov-10	 	 
		 		 		 		 		 		 		 		 		 		 		 	Oct-10	 	 
		 	XI.	 	Loss Reserve Calculation	 		 	Fairway	 	Monterey	 	Salisbury	 	Total	 		 	Sep-10	 	 
		 	A)	 	Total Investment	 		 		 		 	0	 	—  	 	0	 	0	 		 	Aug-10	 	 
		 	B)	 	Cash wired in from collection accounts	 		 		 		 		 	—  	 		 	Jul-10	 	 
		 	C)	 	Loss Percentage/(1-Loss Percentage)	 		 		 		 		 	#DIV/0!	 		 	Jun-10	 	 
		 		 		 		 	Loss Reserve [A - B * C]	 		 		 		 	#DIV/0!	 		 	May-10	 	 
		 		 		 		 		 		 		 		 		 		 		 	
		 		 	loss reserve - default % component:	 		 		 		 		 		 		 	3-Mo Avg 
Default Ratio
		 	F)	 	[*]	 		 		 		 		 		 		 	0.00%	 		 	Apr-11	 	 
		 	G)	 	[*]	 		 		 		 		 		 		 	0.00%	 		 	Mar-11	 	 
		 	H)	 	[*]	 		 		 		 		 		 		 	—  	 		 	Feb-11	 	 
		 	I)	 	Outstanding Balance of Eligible Receivables	 		 		 		 		 	0	 		 	Jan-11	 	 
		 		 		 		 	Loss Reserve Ratios [G * H/I]	 		 		 		 	#DIV/0!	 		 	Dec-10	 	 
		 		 		 		 		 		 		 		 		 	  
	 		 		 	 
		 		 		 		 		 		 		 		 		 		 		 	Nov-10	 	 
		 	XII.	 	Cash Reserve Account	 		 		 		 		 		 		 	Oct-10	 	 
		 	A)	 	Excess Spread [*]	 		 		 		 		 		 		 	#DIV/0!	 		 	Sep-10	 	 
		 	B)	 	Excess Spread [*]	 		 		 		 		 		 		 	#DIV/0!	 		 	Aug-10	 	 
		 	C)	 		 		 	[*]	 		 		 		 		 	#DIV/0!	 		 	Jul-10	 	 
		 		 		 		 	[*]	 		 		 		 		 	 	 		 	Jun-10	 	 
		 		 		 		 		 		 		 		 		 	#DIV/0!	 		 	May-10	 	 

																									
		 	D)	 	[*]	 		 		  		  		  		 	 	0.00	% 	 		 		 	
		 		 		 	Maximum Delinquency Ratio	  		  		  		 	 	 	 	 		 		 	
		 		 		 		 		  		  		  		 	 	Fail	  	 		 		 	
		 		 		 		 		  		  		  		 				 		 		 	
		 		 	[*]	 		 		  		  		  		 	 	#DIV/0!	  	 		 		 	
										
		 	E)	 	Required Reserve Calculation:	  		  		  		 				 		 		 	
		 		 	Has Level I Trigger Ever Occurred	  		  		  		 	 	 	 	 	(Must enter either “Yes” or “No”)	 		 	
		 		 	Calculation Date of Most Recent Level I Trigger Violation	  		  		  		 	 	 	 	 	(fill in manually)	 		 	
		 		 	Has the Most Recent Level I Trigger Been Cured	  		  		  		 	 	 	 	 	(Must enter either “Yes” or “No”)	 		 	
		 		 	Calculation Date Level I Trigger was Cured	  		  		  		 	 	 	 	 	(fill in manually)	 		 	
		 		 	Has the Level I Trigger been cured for [*]?	  		  		  		 	 	 	 	 		 		 	
		 		 	Level I Trigger Applicable (occurred and not cured for [*]) ?	  		  		  		 	 	No	  	 		 		 	
		 		 		 		 		  		  		  		 				 		 		 	
		 	F)	 	Cash Reserve Percentage	  		  		  		 	 	[*]	  	 		 		 	
		 	G)	 	Aggregate Investments (Fairway + Monterey + Salisbury)	  	0	  		  		 				 		 		 	
		 	H)	 		 	Required Cash Reserve Amount [F * G]	  		  		  		 	 	#VALUE!	  	 		 		 	
		 	I)	 		 	Actual Cash Reserve Balance	  		  		  		 	 	—  	  	 	In Compliance	 		 	
											
		 	XIII.	 	Total Reserves	 		  		  		  		 				 		 		 	
		 	A)	 	Loss Reserve	 		  		  		  		 	 	#DIV/0!	  	 		 		 	
		 	B)	 	Cash Reserve [from XII. H)]	 		  		  		  		 	 	#VALUE!	  	 		 		 	
		 		 		 	Total Reserve $ [A + B]	  		  		  		 	 	#DIV/0!	  	 		 		 	
		 		 		 		 		  		  		  		 				 		 		 	
		 		 		 	Total Reserve % [A + B]	  		  		  		 	 	#DIV/0!	  	 		 		 	
		 		 		 		 		  		  		  		 				 		 		 	
		 	C)	 	Investment + Loss Reserve [A + F]	 		  		  		  		 	 	#DIV/0!	  	 		 		 	
		 		 		 		 		  		  		  		 	  
	  
	 	 		 		 	
											
		 	XIV.	 	Liquidation Account Balance	 		  	Fairway	  	Monterey	  	Salisbury	 	 	Total	  	 		 	[*] Backup Servicing Fee calculation	 	
		 	A)	 	Liquidation Account Balance	 		 		  		  		  		 				 		 	[*]	 	[*]
		 	B)	 	Last Billing Paid	 		 	 	  		  		  		 				 		 	[*]	 	[*]
		 	C)	 	  Discount	 		 		  		  		  		 	 	—  	  	 		 	[*]	 	[*]
		 	D)	 	  Utilization Fee (From Billing)	 		  		  		  		 	 	—  	  	 		 	[*]	 	[*]
		 	E)	 	  Facility Fee (From Billing)	 		  		  		  		 	 	—  	  	 		 	[*]	 	[*]
		 	F)	 	  Note Placement Fees	 		  		  		  		 	 	—  	  	 		 	[*]	 	[*]
		 		 		 		 		  		  		  		 				 		 		 	  

		 	G)	 	Backup Serv. Fees [*]	 		  		  		  		 	 	[*]	  	 		 	[*]	 	[*]
		 	H)	 	  Transition Expenses (if Any)	 		  		  		  		 	 	—  	  	 		 		 	
		 		 		 		  		  		  		 				 		 		 	
		 		 		 		 	Minimum Balance	  		  		  		 	 	0	  	 		 		 	
		 		 		 		 	Excess Cash/(Deficit)	  		  		  		 	 	0	  	 		 		 	
		 		 		 		 	Compliance?	  		  		  		 	 	In Compliance	  	 		 		 	
										
		 		 	Note: Items D, E and F are limited to Libor + [*]	  		  		  		 				 		 		 	
	SECTION IV - Performance
Triggers	 	 	  		  		  		 				 		 		 	
										
		 	XVI.	 	Termination Events - Month End Only	  		  		  		 				 		 		 	
		 	A)	 	Participation Test	 		  		  		  		 				 		 		 	
		 		 	1)	 	Aggregate Investments	  		  		  		 	 	0	  	 		 		 	
		 		 	2)	 	Loss Reserve Calculation	  		  		  		 	 	#DIV/0!	  	 		 		 	
		 		 	3)	 	Cash wired from collection account	  		  		  		 	 	—  	  	 		 		 	
		 		 	4)	 	Excess Cash in Liquidation Account	  		  		  		 	 	0	  	 		 		 	
		 		 	5)	 	Investment + Loss Reserve - Cash wired	  		  		  		 	 	#DIV/0!	  	 		 		 	

																			
		  	6)	    	Net Receivable Pool Balance + Excess in Liq. Acct	 		 		 		 		 		 		 	
		  	7)	    	Participation % [5) / 6)]	 		 		 	#DIV/0!	 		 		 		 	
		  	8)	    	Participation % Limit	 	#DIV/0!	 		 	 	 		 		 		 	
		  		    		 		 		 		 		 		 		 	
	 B)
	  	Default Ratio Test	 		 		 		 		 		 	For Reference: calculation of numerator
		  	1)	    	Receivables [*] days past due + Write-offs and Notes < [*] past due	 		 		 	Apr-11	 	Mar-11	 	Feb-11	 	ADD	 	Apr-11
		  		    	    + A/R conv to Notes < [*] past due (Ref Tab 1 for details)	 		 		 	 	 	 	 	 	 	[*] days past 
due
		  	2)	    	Receivables Originated [*] prior (Cash Disbur.)	 		 		 	 	 	 	 	 	 	Total Write-offs
		  	3)	    	Default Ratio [1/2]	 		 		 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 	Total
Conv to Notes
		  		    	Maximum[*] Default Ratio 	 	#DIV/0!	 		 	 	 		 		 	DEDUCT
		  		    		 		 		 		 		 		 	Write-Offs > [*]
		  	4)	    	[*] Avg Default Ratio 	 		 		 	#DIV/0!	 		 		 	Conv to notes > [*]
		  		    	Maximum [*] Avg Default Ratio 	 	#DIV/0!	 		 	 	 		 		 	Df Ratio
numerator
		  		    		 		 		 		 		 		 	
	 C)
	  	Delinquency Ratio Test	 		 		 	Apr-11	 	Mar-11	 	Feb-11	 		 	
		  	1)	    	Total Delinquent Receivables	 		 		 	 	 	 	 	 	 		 	
		  	2)	    	Outstanding Balance of Pool Receivables	 		 		 	 	 	 	 	 	 		 	
		  	3)	    	Delinquency Ratio [1/2] 	 		 		 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 		 	
		  		    	Maximum [*] Delinquency Ratio	 	#DIV/0!        	 		 	 	 		 		 		 	
		  		    		 		 		 		 		 		 		 	
		  	4)	    	[*] Avg Delinquency Ratio 	 		 		 	#DIV/0!	 		 		 		 	
		  		    	Maximum [*] Avg Delinquency Ratio	 	#DIV/0!	 		 	 	 		 		 		 	
		  		 		 		 		 		 		 		 	
	 D)
	  	Net Spread Test	 		 		 	Apr-11	 	Mar-11	 	Feb-11	 		 	
		  		    		 		 		 	30 days	 	31 days	 	28 days	 		 	
		  	1) 	    	Finance Charge Collections	 		 		 		 		 		 		 	
		  	2) 	    	Discount Expensed During Month (actual)	 		 		 		 		 		 		 	
		  	3) 	    	Monthly Facility Fees (includes pgm fee & insur premium)	 		 		 		 		 		 		 	
		  	4) 	    	Monthly Utilization Fee (includes Use & NonUse fees)	 		 		 		 		 		 		 	
		  	5) 	    	Backup Servicing Fees (Wells Fargo) and Unaffiliated Servicer Fees	 		 		 		 		 		 		 	
		  	6) 	    	Transition Expenses (if any)	 		 		 		 		 		 		 	
		  	7) 	    	Servicer Fee	 		 		 		 		 		 		 	
		  	8) 	    	Other Fees > $100	 		 		 		 		 		 		 	
		  	9) 	    	Receivables [*] Days Past Due	 		 		 		 		 		 		 	
		  	10)	    	Write-offs/Non-Cash AJE’s	 		 		 		 		 		 		 	
		  	11)	    	A/R Converted to Notes	 		 		 		 		 		 		 	
		  		    	        Subtotal	 		 		 	0  	 	0  	 	0  	 		 	
		  	12)	    	Add Back 10) & 11) greater than [*] days old	 		 		 	0  	 	0  	 	0  	 		 	
		  	13)	    	Recoveries	 		 		 		 		 		 		 	
		  	14)	    	Collections on defaulted receivables	 		 		 		 		 		 		 	
		  	15)	    	Excess Finance Collections	 		 		 		 		 		 		 	
		  	16)	    	Average Aggregate Balance Pool Receivables	 		 		 	0  	 	0  	 	0  	 		 	
		  	17)	    	Net Spread [*] 	 		 		 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 		 	
		  	18)	    	Minimum Net Spread 	 		 		 	 	 		 		 		 	
		  		    	Compliance [*]	 		 		 	#DIV/0!	 		 		 		 	
		  		    		 		 		 		 		 		 		 	
		  	19)	    	[*] Avg Net Spread (level I)	 		 		 	#DIV/0!	 		 		 		 	
		  		    		 		 		 		 		 		 		 	
	 E)
	  	Payment Rate	 		 		 	Apr-11	 	Mar-11	 	Feb-11	 		 	
		  	1)	    	Collections of principal on all Pool Receivables (excluding Collections of principal on Specified Ineligible Recievables)	 		 	—  	 	—  	 	—  	 		 	
		  	2)	    	Beginning agg O/S Balance of Pool Receivables (excluding Collections of principal on Specified Ineligible Recievables)	 		 	—  	 	—  	 	—  	 		 	
		  		    	Payment Rate	 		 		 	#DIV/0!	 	#DIV/0!	 	#DIV/0!	 		 	
		  		    	[*] avg Payment Rate 	 		 		 	#DIV/0!	 		 		 		 	
		  		    	Minimum [*] avg Payment Rate	 		 		 	 	 		 		 		 	
		  		    		 		 		 	#DIV/0!	 		 		 		 	

													
	 F)
	 	    Minimum Eligible Receivables
		 	 1)
	    	Eligible Receivables	  		 	0  	  		  	
		 	 2)
	    	Minimum Eligible Receivables	  		 	 	  		  	
		 		    	Compliance [1 > 2]	  		 	Violation	  		  	

  

					
	 SECTION V - Financial Triggers & Covenants
	 		 	

  

													
	 A)
	 	    Tangible Net Worth Test
		 	 1. Servicer - Automotive Finance Corporation
	  		  	
		 	 A)
	    	AFC’s Shareholder’s Equity	 		 	 	  		  	
		 	 B)
	    	AFC’s Intangible Assets	 		 	 	  		  	
		 	 C)
	    	Tangible Net Worth [A-B]	 		 	0  	  		  	
		 	 D)
	    	Minimum Tangible Net Worth	 		 	 	  		  	
		 		    	Compliance [C > D]	 		 	In Compliance	  		  	
		 		    		 		 		  		  	
		 	 2. Seller - AFC Funding Corporation
	  		  	
		 	 A)
	    	Funding Shareholder’s Equity	 		 	 	  		  	
		 	 B)
	    	Funding Corp’s Intangible Assets	 		 	 	  		  	
		 	 C)
	    	Tangible Net Worth [A-B]	 		 	0  	  		  	
		 	 D)
	    	Minimum Tangible Net Worth	 		 	 	  		  	
		 		    	Compliance [C > D]	 		 	In Compliance	  		  	
		 		    		 		 		  		  	
	 B)
	 	    Servicer’s Debt + Investment Limitation 	  		  	
		 	 A)
	    	Maximum Debt	 		 	 	  		  	
		 	 B)
	    	All Debt (including Intercompany) & Receivables Sold	 	 	  		  	
		 	 C)
	    	Compliance (A > B)	 		 	In Compliance	  		  	
		 		    		 		 		  		  	
	 C)
	 	    Servicer’s Debt/Equity Ratio
		 	 A)
	    	All Debt	 		 	0  	  		  	
		 	 B)
	    	AFC Shareholder’s Equity	 		 	0  	  		  	
		 		    	Debt:Equity	 		 	#DIV/0!	  		  	
		 		    	Compliance (A/B < = )	 	5.00x	 	#DIV/0!	  		  	
		 		    		 		 		  		  	
	 D)        
	 	    Seller Liquidity
		 		    	AFC cash and cash equivalents	 		 	 	  		  	
		 		    	Minimum cash and equivalents	 		 	 	  		  	
		 		    	AFC unresstricted cash	 		 	 	  		  	
		 		    	Minimum unrestricted cash	 		 	 	  		  	
		 		    	Termination Event test	 		 	In Compliance	  		  	
		 		    		 		 		  		  	
		 		    		 		 		  		  	
		 		    		 		 		  		  	
		 		    	In Compliance	 		 		  		  	
		 		    	Violation	 		 		  		  	

 ANNEX C 
 FORM OF JOINDER AGREEMENT 
 THIS JOINDER AGREEMENT (this
“Agreement”), dated as of [                    ], 20[    ], is entered into among AFC Funding Corporation (the
“Seller”), Automotive Finance Corporation, as servicer (the “Servicer”),
[                        ], a
[                        ], as a Purchaser (the
“[                    ] Purchaser”),
[                    ], as Purchaser Agent for the [                ]
Purchaser (the “[                    ] Purchaser Agent”), and BMO Capital Markets Corp. (formerly known as Harris Nesbitt Corp.), as
agent for the Purchasers (the “Agent”). 
 BACKGROUND 

The Seller, the Servicer and the Agent are parties to a certain Fourth Amended and Restated Receivables Purchase Agreement, dated as of
April 26, 2011 (as amended through the date hereof, the “Receivables Purchase Agreement”). Capitalized terms used but not defined herein have the meanings assigned to them in the Receivables Purchase Agreement. 

NOW, THEREFORE, the parties hereto hereby agree as follows: 
 SECTION 1. Addition of [            ] and
[                    ] Purchaser. (a) This letter constitutes a Joinder Agreement pursuant to Section 1.12 of the Receivables
Purchase Agreement. The Seller desires the [                    ] Purchaser to become a Purchaser and the
[                    ] Purchaser Agent to become a Purchaser Agent under the Receivables Purchase Agreement, and the
[                    ] Purchaser agrees to become a Purchaser and the
[                    ] Purchaser Agent agrees to become a Purchaser Agent thereunder. 

(b) Seller hereby represents and warrants to each of the
[                    ] Purchaser, the
[                    ] Purchaser Agent, the Agent and Fairway as of the date hereof, as follows: 

(i) the representations and warranties contained in Exhibit III and Exhibit VII to the Receivables
Purchase Agreement are true and correct on and as of the date hereof as though made on and as of such date; 

(ii) no event has occurred and is continuing, or would result from the execution of this Agreement, that constitutes a
Termination Event or Unmatured Termination Event; 
 (iii) the sum of the aggregate of the Participations does
not exceed 100%; and 
 (iv) the amount on deposit in the Cash Reserve Account is equal to or greater than the
Cash Reserve. 
 SECTION 2. Effective Date of Addition. Upon execution and delivery of this Agreement by the Seller, the
Servicer, each of the [                    ] Purchaser, the
[                    ] Purchaser Agent, Fairway and the Agent and receipt by the Agent of counterparts of this Agreement (whether by facsimile or
otherwise) executed by each of the parties hereto, on 

  
 Annex C-1

 
[                    ], 20[    ] (the “Effective Date”) each of
the [                ] Purchaser and the [                ] Purchaser Agent shall become
a party to, and have the rights and obligations of a Purchaser and Purchaser Agent, respectively, under, the Receivables Purchase Agreement and [                ] shall,
to the extent of the interest assigned by [                ] hereunder, relinquish its rights and interest (other than the right to receive payments which accrued in
favor of Fairway prior to but not including the date hereof) and be released from its obligations under the Receivables Purchase Agreement. 
 SECTION 3. Assignment by [                ]. On the Effective Date,
[                ] (the “Assignor”) hereby sells and assigns to the
[                ] Purchaser (the “Assignee”) without recourse and without representation or warranty (except that the portion of the Participation
being assigned hereunder is outstanding and owing and Assignor is the sole owner of its right, title and interest in and to the portion of Participation being transferred hereunder free of any Adverse Claim), and the Assignee hereby purchases and
assumes from the Assignor, that portion of the Assignor’s interest in and to the Participation and that portion of the Assignor’s other rights and obligations under the Receivables Purchase Agreement as of the date hereof equal to the
following: 
  

					
	 Maximum Commitment assigned:
	  	$	[            	] 
	 Assignor’s remaining Maximum Commitment:
	  	$	[            	] 
	 Investment to be assigned on the Effective Date:
	  	$	[            	] 

 The Agent shall confirm the aggregate Investment of each Purchaser to each Purchaser Agent by email on
the Effective Date after the transfers to occur on the Effective Date. 
 The Maximum Commitment of the Assignor and the
Assignee shall be as set forth on the signature page hereto. 
 (a) The Assignor hereby instructs the Agent to make all payments
from and after the Effective Date in respect of the portion of the Participation assigned hereby directly to the Assignee. The Assignor and the Assignee agree that all Discount and fees accrued up to, but not including, the Effective Date are the
property of the Assignor, and not the Assignee. The Assignee agrees that, upon receipt of any such Discount or fees, the Assignee will promptly remit the same to the Assignor. 
 (b) On the Effective Date, the Assignee shall pay to the Assignor, in immediately available funds, an amount equal to the purchase price of the portion of the Participation assigned hereunder in
accordance with the following payment instructions: 
  

					
	  
	 	
	ABA No.:	 	  
	 	  
	Account Name:	 	  
	 	  
	Account No.:	 	  
	 	  
	Ref:	 	AFC Funding Corporation	 	  

 (c) All notices and other communications hereunder or under the Receivables Purchase Agreement to the
[                    ] Purchaser and the
[                    ] Purchaser Agent shall be sent or delivered to
[                    ] Purchaser and
[                    ] Purchaser Agent at the address set forth under their names on the signature pages hereof. 

  
 Annex C-2

 SECTION 4. No Proceedings. Each party hereto hereby covenants and agrees that it will
not institute against, or join any other Person in instituting against, any Purchaser, any Note Issuer or any Related CP Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding under any federal
or state bankruptcy or similar law, for one year and one day after the latest maturing Note issued by such Purchaser, Note Issuer or Related CP Issuer is paid in full. The provisions of Section 6.5(b) of the Receivables Purchase Agreement shall
apply to this Agreement mutatis mutandis as if set forth herein. The covenants contained in this paragraph shall survive any termination of the Receivables Purchase Agreement. 
 SECTION 5. Miscellaneous. THIS AGREEMENT SHALL BE GOVERNED BY THE INTERNAL LAWS OF THE STATE OF INDIANA. This Agreement may not be amended, supplemented or waived except pursuant to a writing
signed by the party to be charged. This Agreement may be executed in counterparts, and by the different parties on different counterparts, each of which shall constitute an original, but all together shall constitute one and the same agreement.

  
 Annex C-3

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement by their duly authorized
officers as of the date first above written. 
  

			
	[                            
            ]
		
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

  

			
	Maximum Commitment:	 	$[            -]
		
	Address:	 	
	
	[                    ], as Purchaser Agent for
[                ]

  

			
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

	
	Address:

  
 Annex C-4

 
			
	[                            
            ],
	
	as a Purchaser

  

			
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

  

			
	Maximum Commitment:	 	$[            ]
	
	 BMO CAPITAL MARKETS CORP.,
 as Agent

		 	

  

			
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

	
	AFC FUNDING CORPORATION, as Seller

  

			
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

	
	 AUTOMOTIVE FINANCE CORPORATION,
 as Servicer

  

			
	 By:
	 	  

			
	 Name Printed:
	 	  

			
	Title:	 	  

  
 Annex C-5

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