Document:

exv10w2

EXHIBIT 10.2

 

FORM OF

PURCHASE AGREEMENT

dated as of [                     
           ]

between

BANK OF AMERICA,

NATIONAL ASSOCIATION

and

BAS SECURITIZATION LLC

 

 

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I   DEFINITIONS AND USAGE
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.1  Definitions
	 	 	1	 
	 
	 	 	 	 
	SECTION 1.2  Other Interpretive Provisions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II  PURCHASE
	 	 	2	 
	 
	 	 	 	 
	SECTION 2.1  Agreement to Sell and Contribute on the Closing Date
	 	 	2	 
	 
	 	 	 	 
	SECTION 2.2  Consideration and Payment
	 	 	2	 
	 
	 	 	 	 
	ARTICLE III  REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	2	 
	 
	 	 	 	 
	SECTION 3.1  Representations and Warranties of BANA
	 	 	2	 
	 
	 	 	 	 
	SECTION 3.2  Representations and Warranties of BANA as to each Receivable
	 	 	3	 
	 
	 	 	 	 
	SECTION 3.3  Repurchase upon Breach
	 	 	4	 
	 
	 	 	 	 
	SECTION 3.4  Protection of Title
	 	 	4	 
	 
	 	 	 	 
	SECTION 3.5  Other Liens or Interests
	 	 	5	 
	 
	 	 	 	 
	SECTION 3.6  Perfection Representations, Warranties and Covenants
	 	 	5	 
	 
	 	 	 	 
	ARTICLE IV  MISCELLANEOUS
	 	 	5	 
	 
	 	 	 	 
	SECTION 4.1  Transfers Intended as Sale; Security Interest
	 	 	5	 
	 
	 	 	 	 
	SECTION 4.2  Notices, Etc
	 	 	6	 
	 
	 	 	 	 
	SECTION 4.3  Choice of Law
	 	 	7	 
	 
	 	 	 	 
	SECTION 4.4  Headings
	 	 	7	 
	 
	 	 	 	 
	SECTION 4.5  Counterparts
	 	 	7	 
	 
	 	 	 	 
	SECTION 4.6  Amendment
	 	 	7	 
	 
	 	 	 	 
	SECTION 4.7  Waivers
	 	 	8	 
	 
	 	 	 	 
	SECTION 4.8  Entire Agreement
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.9  Severability of Provisions
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.10  Binding Effect
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.11  Acknowledgment and Agreement
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.12  Cumulative Remedies
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.13  Nonpetition Covenant
	 	 	9	 
	 
	 	 	 	 
	SECTION 4.14  Submission to Jurisdiction; Waiver of Jury Trial
	 	 	10	 
	 
	 	 	 	 
	SECTION 4.15  [Limitation of Rights]
	 	 	10	 

i

 

EXHIBITS

	 	 	 
	Exhibit A
	 	Form of Assignment Pursuant to Purchase Agreement

	Schedule I
	 	Representations and Warranties With Respect to the Receivables

	Schedule II
	 	Perfection Representations, Warranties and Covenants

ii

 

     THIS PURCHASE AGREEMENT is made and entered into as of
[                    ] (as amended
from time to time, this “Agreement”) by BANK OF AMERICA, NATIONAL ASSOCIATION, a national
banking association (“BANA”), and BAS SECURITIZATION LLC, a Delaware limited liability company (the
“Purchaser”).

WITNESSETH:

     WHEREAS, the Purchaser desires to purchase from BANA a portfolio of motor vehicle receivables,
including retail motor vehicle installment sales contracts and/or installment loans that are
secured by new and used automobiles and light-duty trucks; and

     WHEREAS, BANA is willing to sell such portfolio of motor vehicle receivables and related
property to the Purchaser on the terms and conditions set forth in this Agreement.

     NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereto agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

     SECTION 1.1 Definitions. Except as otherwise defined herein or as the context may
otherwise require, capitalized terms used but not otherwise defined herein are defined in
Appendix A to the Sale and Servicing Agreement dated as of the date hereof (as from time to
time amended, supplemented or otherwise modified and in effect, the “Sale and Servicing
Agreement”) among Banc of America Auto Securities Trust 20[     ]-[     ], BANA, as servicer, the
Purchaser, as seller, and [               ], as indenture trustee.

     SECTION 1.2 Other Interpretive Provisions. For purposes of this Agreement, unless the
context otherwise requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined, shall have the
respective meanings given to them under GAAP; (b) terms defined in Article 9 of the UCC as in
effect in the relevant jurisdiction and not otherwise defined in this Agreement are used as defined
in that Article; (c) the words “hereof,” “herein” and “hereunder” and words of similar import refer
to this Agreement as a whole and not to any particular provision of this Agreement; (d) references
to any Article, Section, Schedule, Appendix or Exhibit are references to Articles, Sections,
Schedules, Appendices and Exhibits in or to this Agreement and references to any paragraph,
subsection, clause or other subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (e) the term “including”
means “including without limitation”; (f) except as otherwise expressly provided herein, references
to any law or regulation refer to that law or regulation as amended from time to time and include
any successor law or regulation; and (g) references to any Person include that Person’s successors
and assigns.

Purchase
Agreement (20[   ]-[  ])

 

 

ARTICLE II

PURCHASE

     SECTION 2.1 Agreement to Sell and Contribute on the Closing Date. On the terms and
subject to the conditions set forth in this Agreement, BANA agrees to transfer, assign, set over,
sell and otherwise convey to the Purchaser without recourse (subject to the obligations herein) on
the Closing Date all of its right, title and interest in, to and under the Receivables, the
Collections after the Cut-Off Date, the Receivable Files and the Related Security relating thereto,
described in an Assignment in the form of Exhibit A delivered on the Closing Date (the
“Purchased Assets”) having a Net Pool Balance as of the Cut-Off Date equal to $[                     
], which sale shall be effective as of the Cut-Off Date. The sale, transfer, assignment and
conveyance made hereunder does not constitute and is not intended to result in an assumption by the
Purchaser of any obligation of BANA or the applicable Originator to the Obligors, the Dealers or
any other Person in connection with the Receivables or the other assets and properties conveyed
hereunder or any agreement, document or instrument related thereto.

     SECTION 2.2 Consideration and Payment. In consideration of the transfer of the
Purchased Assets conveyed to the Purchaser on the Closing Date, the Purchaser shall pay in cash to
BANA on such date an amount equal to $[                              ], representing the
estimated
fair market value of the Purchased Assets on the Closing Date. Notwithstanding the preceding
sentence, if such purchase price for the Purchased Assets exceeds the amount of cash available to
the Purchaser from the proceeds of the sale of the Notes, then an undivided interest in such
Purchased Assets in an amount equal to such excess shall be deemed to have been contributed to the
Purchaser by BANA.

ARTICLE III

REPRESENTATIONS, WARRANTIES AND COVENANTS

     SECTION 3.1 Representations and Warranties of BANA. BANA makes the following
representations and warranties as of the Closing Date on which the Purchaser will be deemed to have
relied in acquiring the Purchased Assets. The representations and warranties will survive the
conveyance of the Purchased Assets to the Purchaser pursuant to this Agreement, the conveyance of
the Purchased Assets to the Issuer pursuant to the Sale and Servicing Agreement and the Grant
thereof by the Issuer to the Indenture Trustee pursuant to the Indenture:

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

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Agreement (20[   ]-[  ])

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     (b) Authorization and No Contravention. The execution, delivery and performance by
BANA of the Transaction Documents to which it is a party (i) have been duly authorized by all
necessary action on the part of BANA and (ii) do not contravene or constitute a default under (A)
any applicable law, rule or regulation, (B) its organizational documents or (C) any material
agreement, contract, order or other instrument to which it is a party or its property is subject
(other than violations which do not affect the legality, validity or enforceability of any of such
agreements and which, individually or in the aggregate, would not materially and adversely affect
the transactions contemplated by, or BANA’s ability to perform its obligations under, the
Transaction Documents).

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

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

     (e) No Proceedings. There are no actions, suits or Proceedings pending or, to the
knowledge of BANA, threatened against BANA before or by any Governmental Authority that (i) assert
the invalidity or unenforceability of this Agreement or any of the other Transaction Documents,
(ii) seek to prevent the issuance of the Notes or the consummation of any of the transactions
contemplated by this Agreement or any of the other Transaction Documents, (iii) seek any
determination or ruling that would materially and adversely affect the performance by BANA of its
obligations under this Agreement or any of the other Transaction Documents or the collectibility or
enforceability of the Receivables, or (iv) relate to BANA that would materially and adversely
affect the federal or Applicable Tax State income, excise, franchise or similar tax attributes of
the Notes.

     (f) Lien Filings. BANA is not aware of any material judgment, ERISA or tax lien
filings against BANA.

     SECTION 3.2 Representations and Warranties of BANA as to each Receivable. BANA hereby
makes the representations and warranties set forth on Schedule I as to the Receivables,
sold, contributed, transferred, assigned, set over, sold and otherwise conveyed to the Purchaser
under this Agreement on which such representations and warranties the Purchaser relies in acquiring
the Receivables. Such representations and warranties shall survive the sale of the Receivables to
the Issuer under the Sale and Servicing Agreement, and the Grant of the Receivables by the Issuer
to the Indenture Trustee pursuant to the Indenture. Notwithstanding

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Agreement (20[   ]-[  ])

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any statement to the contrary contained herein or in any other Transaction Document, BANA
shall not be required to notify any insurer with respect to any Insurance Policy obtained by an
Obligor or to notify any Dealer about any aspect of the transaction contemplated by the Transaction
Documents.

     SECTION 3.3 Repurchase upon Breach. Upon discovery by or notice to the Purchaser or
BANA of a breach of any of the representations and warranties set forth in Section 3.2 at
the time such representations and warranties were made which materially and adversely affects the
interests of the Issuer or the Noteholders, the party discovering such breach or receiving such
notice shall give prompt written notice thereof to the other party; provided, that delivery of the
Servicer’s Certificate shall be deemed to constitute prompt notice by the Servicer and the Issuer
of such breach; provided, further, that the failure to give such notice shall not affect any
obligation of BANA hereunder. If BANA does not correct or cure such breach prior to the end of the
Collection Period which includes the 60th day (or, if BANA elects, an earlier date) after the date
that BANA became aware or was notified of such breach, then BANA shall purchase any Receivable
materially and adversely affected by such breach from the Purchaser on the Payment Date following
the end of such Collection Period. Any such breach or failure will not be deemed to have a
material and adverse effect if such breach or failure does not affect the ability of the Purchaser
(or its assignee) to receive and retain timely payment in full on such Receivable. Any such
purchase by BANA shall be at a price equal to the Repurchase Price. In consideration for such
repurchase, BANA shall make (or shall cause to be made) a payment to the Purchaser equal to the
Repurchase Price by depositing such amount into the Collection Account prior to 11:00 a.m., New
York City time on such Payment Date. Upon payment of such Repurchase Price by BANA, the Purchaser
shall release and shall execute and deliver such instruments of release, transfer or assignment, in
each case without recourse or representation, as may be reasonably requested by BANA to evidence
such release, transfer or assignment or more effectively vest in BANA or its designee any
Receivable repurchased pursuant hereto. It is understood and agreed that the obligation of BANA to
purchase any Receivable as described above shall constitute the sole remedy respecting such breach
available to the Purchaser.

     SECTION 3.4 Protection of Title.

     (a) BANA shall authorize and file such financing statements and cause to be authorized and
filed such continuation and other statements, all in such manner and in such places as may be
required by law fully to preserve, maintain and protect the interest of the Purchaser under this
Agreement in the Receivables. BANA shall deliver (or cause to be delivered) to the Purchaser
file-stamped copies of, or filing receipts for, any document filed as provided above, as soon as
available following such filing.

     (b) BANA shall not change its name, identity, corporate structure or jurisdiction of
organization in any manner that would make any financing statement or continuation statement filed
by BANA in accordance with paragraph (a) above “seriously misleading” within the meaning of
Sections 9-506, 9-507 or 9-508 of the UCC, unless it shall have given the Purchaser at least five
days’ prior written notice thereof and, to the extent necessary, shall have promptly filed
amendments to previously filed financing statements or continuation statements described in
paragraph (a) above.

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Agreement (20[   ]-[  ])

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     (c) BANA shall give the Purchaser at least ten days’ prior written notice of any change of
location of BANA for purposes of Section 9-307 of the UCC and shall have taken all action prior to
making such change (or shall have made arrangements to take such action substantially
simultaneously with such change, if it is not possible to take such action in advance) reasonably
necessary or advisable in the opinion of the Purchaser to amend all previously filed financing
statements or continuation statements described in paragraph (a) above.

     (d) BANA shall maintain (or shall cause its Sub-Servicer to maintain) its computer systems so
that, from time to time after the conveyance under this Agreement of the Receivables, the master
computer records (including any backup archives) that refer to a Receivable shall indicate clearly
the interest of the Purchaser (or any subsequent assignee of the Purchaser) in such Receivable and
that such Receivable is owned by such Person. Indication of such Person’s interest in a Receivable
shall not be deleted from or modified on such computer systems until, and only until, the related
Receivable shall have been paid in full or repurchased.

     (e) If at any time BANA shall propose to sell, grant a security interest in or otherwise
transfer any interest in motor vehicle receivables to any prospective purchaser, lender or other
transferee, BANA shall give to such prospective purchaser, lender or other transferee computer
tapes, records or printouts (including any restored from backup archives) that, if they shall refer
in any manner whatsoever to any Receivable, shall indicate clearly that such Receivable has been
sold and is owned by the Purchaser (or any subsequent assignee of the Purchaser).

     SECTION 3.5 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction Documents, BANA shall not
sell, pledge, assign or transfer the Receivables or other property transferred to the Purchaser to
any other Person, or grant, create, incur, assume or suffer to exist any Lien (other than Permitted
Liens) on any interest therein, and BANA shall defend the right, title and interest of the
Purchaser in, to and under such Receivables or other property transferred to the Purchaser against
all claims of third parties claiming through or under BANA.

     SECTION 3.6 Perfection Representations, Warranties and Covenants. BANA hereby makes
the perfection representations, warranties and covenants set forth on Schedule II hereto to
the Purchaser and the Purchaser shall be deemed to have relied on such representations, warranties
and covenants in acquiring the Purchased Assets.

ARTICLE IV

MISCELLANEOUS

     SECTION 4.1 Transfers Intended as Sale; Security Interest.

     (a) Each of the parties hereto expressly intends and agrees that the transfers contemplated
and effected under this Agreement are complete and absolute sales and contributions rather than
pledges or assignments of only a security interest and shall be given effect as such for all
purposes. It is further the intention of the parties hereto that the Receivables and related
Purchased Assets shall not be part of BANA’s estate in the event of a bankruptcy or

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Agreement (20[   ]-[  ])

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insolvency of BANA. The sales and transfers by BANA of the Receivables and related Purchased
Assets hereunder are and shall be without recourse to, or representation or warranty (express or
implied) by, BANA, except as otherwise specifically provided herein. The limited rights of
recourse specified herein against BANA are intended to provide a remedy for breach of
representations and warranties relating to the condition of the property sold, rather than to the
collectibility of the Receivables.

     (b) Notwithstanding the foregoing, in the event that the Receivables and other Purchased
Assets are held to be property of BANA, or if for any reason this Agreement is held or deemed to
create indebtedness or a security interest in the Receivables and other Purchased Assets, then it
is intended that:

     (i) This Agreement shall be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the New York UCC and the UCC of any other applicable jurisdiction;

     (ii) The conveyance provided for in Section 2.1 shall be deemed to be a grant
by BANA of, and BANA hereby grants to the Purchaser, a security interest in all of its right
(including the power to convey title thereto), title and interest, whether now owned or
hereafter acquired, in and to the Receivables and other Purchased Assets, to secure such
indebtedness and the performance of the obligations of BANA hereunder;

     (iii) The possession by the Purchaser or its agent of the Receivable Files and any
other property as constitute instruments, money, negotiable documents or chattel paper shall
be deemed to be “possession by the secured party” or possession by the purchaser or a Person
designated by such purchaser, for purposes of perfecting the security interest pursuant to
the New York UCC and the UCC of any other applicable jurisdiction; and

     (iv) Notifications to Persons holding such property, and acknowledgments, receipts or
confirmations from Persons holding such property, shall be deemed to be notifications to, or
acknowledgments, receipts or confirmations from, bailees or agents (as applicable) of the
Purchaser for the purpose of perfecting such security interest under applicable law.

     SECTION 4.2 Notices, Etc. All demands, notices and communications hereunder shall be
in writing and shall be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, or by facsimile and addressed in
each case as specified on Schedule II to the Sale and Servicing Agreement, or at such other
address as shall be designated by any of the specified addressees in a written notice to the other
parties hereto. Any notice required or permitted to be mailed to a Noteholder shall be given by
first class mail, postage prepaid, at the address of such Noteholder as shown in the Note Register.
Delivery shall occur only upon receipt or reported tender of such communication by an officer of
the recipient entitled to receive such notices located at the address of such recipient for notices
hereunder; provided, however, that any notice to a Noteholder mailed within the time prescribed in
this Agreement shall be conclusively presumed to have been duly given, whether or not the
Noteholder shall receive such notice.

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Agreement (20[   ]-[  ])

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     SECTION 4.3 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE
RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 4.4 Headings. The section headings hereof have been inserted for convenience
only and shall not be construed to affect the meaning, construction or effect of this Agreement.

     SECTION 4.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all of such
counterparts shall together constitute but one and the same instrument.

     SECTION 4.6 Amendment.

     (a) Any term or provision of this Agreement may be amended by BANA and the Purchaser without
the consent of the Indenture Trustee, any Noteholder, the Issuer, [the Swap Counterparty,] the
Owner Trustee or any other Person subject to Section 4.6(e) and the satisfaction of one of
the following conditions:

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

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

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

     (b) Subject to Section 4.6(e), any term or provision of this Agreement may be amended
by BANA and the Purchaser without the consent of the Indenture Trustee, any Noteholder, [the Swap
Counterparty,] the Issuer, the Owner Trustee, the Servicer or any other Person to add, modify or
eliminate any provisions as may be necessary or advisable in order to enable BANA, the Purchaser or
any of their Affiliates to comply with or obtain more favorable treatment under any law or
regulation or any accounting rule or principle (whether now or in the future in effect), it being a
condition to any such amendment that the Rating Agency Condition shall have been satisfied.

     (c) Subject to Section 4.6(e), this Agreement may also be amended from time to time by
BANA and the Purchaser, with the consent of the Holders of Notes evidencing not less than a
majority of the Outstanding Note Balance, voting as a single class, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement

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or of modifying in any manner the rights of the Noteholders. It will not be necessary for the
consent of Noteholders to approve the particular form of any proposed amendment or consent, but it
will be sufficient if such consent approves the substance thereof. The manner of obtaining such
consents (and any other consents of Noteholders provided for in this Agreement) and of evidencing
the authorization of the execution thereof by Noteholders will be subject to such reasonable
requirements as the Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement.

     (d) Prior to the execution of any such amendment to the Agreement, BANA shall provide written
notification of the substance of such amendment to each Rating Agency; and promptly after the
execution of any such amendment or consent, BANA shall furnish a copy of such amendment or consent
to each Rating Agency and the Indenture Trustee.

     (e) Prior to the execution of any amendment to this Agreement, the Owner Trustee and the
Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of Counsel
stating that the execution of such amendment is authorized or permitted by this Agreement and that
all conditions precedent to the execution and delivery of such amendment have been satisfied. The
Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter into any such
amendment which materially and adversely affects the Owner Trustee’s or the Indenture Trustee’s, as
applicable, own rights, privileges, indemnities, duties or obligations under this Agreement, the
Transaction Documents or otherwise.

     (f) Notwithstanding anything to the contrary herein, (i) this Agreement may not be amended in
any way that would materially and adversely affect the Owner Trustee’s or the Indenture Trustee’s,
as applicable, own rights, privileges, indemnities, duties, or obligations under this Agreement,
the Transaction Documents or otherwise without prior written consent of such Person; [(ii) this
Agreement may not be amended in any way that would materially and adversely affect the rights or
obligations of the Swap Counterparty unless the Swap Counterparty shall have consented in writing
to such amendment (and such consent shall be deemed to have been given if the Swap Counterparty
does not object in writing within ten (10) Business Days after receipt of a written request for
such consent)]; and (iii) this Agreement may not be amended in any way that would significantly
change the permitted activities or powers of the Issuer even if such amendment would not have an
adverse effect on the Holders of the Notes without the consent of the Holders of at least a
majority of the Outstanding Notes.

     SECTION 4.7 Waivers. No failure or delay on the part of the Purchaser, the Servicer,
BANA, the Issuer or the Indenture Trustee in exercising any power or right hereunder (to the extent
such Person has any power or right hereunder) shall operate as a waiver thereof, nor shall any
single or partial exercise of any such power or right preclude any other or further exercise
thereof or the exercise of any other power or right. No notice to or demand on the Purchaser or
BANA in any case shall entitle it to any notice or demand in similar or other circumstances. No
waiver or approval by either party under this Agreement shall, except as may otherwise be stated in
such waiver or approval, be applicable to subsequent transactions. No waiver or approval under
this Agreement shall require any similar or dissimilar waiver or approval thereafter to be granted
hereunder.

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Agreement (20[   ]-[  ])

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     SECTION 4.8 Entire Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
thereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter thereof, superseding all prior oral or written understandings. There are no
unwritten agreements among the parties.

     SECTION 4.9 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     SECTION 4.10 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms, and shall remain in full force and effect until such time as the parties
hereto shall agree.

     SECTION 4.11 Acknowledgment and Agreement. By execution below, BANA expressly
acknowledges and consents to the sale of the Purchased Assets and the assignment of all rights and
obligations of BANA related thereto by the Purchaser to the Issuer pursuant to the Sale and
Servicing Agreement and the Grant of a security interest in the Receivables and the other Purchased
Assets by the Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of the
Noteholders [and the Swap Counterparty]. In addition, BANA hereby acknowledges and agrees that for
so long as the Notes are outstanding, the Indenture Trustee will have the right to exercise all
powers, privileges and claims of the Purchaser under this Agreement.

     SECTION 4.12 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.

     SECTION 4.13 Nonpetition Covenant. Each party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each Bankruptcy Remote
Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party hereto
shall not authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other
voluntary case or other Proceeding seeking liquidation, reorganization or other relief with respect
to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law
now or hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a
trustee, receiver, liquidator, custodian or other similar official with respect to such Bankruptcy
Remote Party or any substantial part of its property or to consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or other Proceeding
commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of
its creditors generally, any party hereto or any other creditor of such Bankruptcy Remote Party,
and (ii) none of the parties hereto shall commence or join with any other Person in commencing any
Proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation
or insolvency law or statute now or hereafter in effect in any jurisdiction. This Section shall
survive the termination of this Agreement.

Purchase
Agreement (20[   ]-[  ])

- 9 -

 

     SECTION 4.14 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:

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

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

     (c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 4.2 of this
Agreement;

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

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

     SECTION 4.15 [Limitation of Rights]. [All of the rights of the Swap Counterparty in,
to and under this Agreement, if any, shall terminate upon the termination of the Interest Rate Swap
Agreement in accordance with the terms thereof and the payment in full of all amounts owing to the
Swap Counterparty under such Interest Rate Swap Agreement.]

[Remainder of Page Intentionally Left Blank]

Purchase
Agreement (20[   ]-[  ])

- 10 -

 

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

	 	 	 	 	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	BAS SECURITIZATION LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Purchase
Agreement (20[   ]-[  ])

S-1 

 

	 	 	 	 	 

EXHIBIT A

FORM OF

ASSIGNMENT PURSUANT TO PURCHASE AGREEMENT

[                              ]

     For value received, in accordance with the Purchase Agreement dated as of
[                    ],
(the “Agreement”), between Bank of America, National Association, a national banking
association (“BANA”), and BAS Securitization LLC, a Delaware limited liability company (the
“Purchaser”), on the terms and subject to the conditions set forth in the Agreement, BANA
does hereby transfer, assign, set over, sell and otherwise convey to the Purchaser without recourse
(subject to the obligations in the Agreement) on the Closing Date, all of its right, title and
interest in, to and under the Receivables set forth on the schedule of Receivables delivered by
BANA to the Purchaser on the date hereof (such schedule, the “Schedule of Receivables”),
the Collections after the Cut-Off Date, the Receivables Files and the Related Security relating
thereto, which sale shall be effective as of the Cut-Off Date.

     The foregoing sale does not constitute and is not intended to result in any assumption by the
Purchaser of any obligation of the undersigned or the Originator to the Obligors, the Dealers or
any other Person in connection with the Receivables, or the other assets and properties conveyed
hereunder or any agreement, document or instrument related thereto.

     This assignment is made pursuant to and upon the representations, warranties and agreements on
the part of the undersigned contained in the Agreement and is governed by the Agreement.

     Capitalized terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement, or if not defined in the Agreement, in Appendix A to the Sale and
Servicing Agreement, dated as of [                    ], among Banc of America Auto Securities Trust
20[     ]-[     ], BANA, as servicer, the Purchaser, as seller and
[                    ], as indenture trustee.

[Remainder of page intentionally left blank]

Purchase
Agreement (20[   ]-[  ])

A-1 

 

     IN WITNESS HEREOF, the undersigned has caused this assignment to be duly executed as of the
date first above written.

	 	 	 	 	 
	 	BANK OF AMERICA, NATIONAL ASSOCIATION

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

Purchase
Agreement (20[   ]-[  ])

A-2 

 

	 	 	 	 	 

SCHEDULE I

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RECEIVABLES

	(a)	 	Characteristics of Receivables. Each Receivable:

	 	(i)	 	has been fully and properly executed by the Obligor thereto;
	 
	 	(ii)	 	has either (A) been originated by a Dealer in the ordinary course of such
Dealer’s business to finance the retail sale by a Dealer of the related Financed
Vehicle and has been purchased by the Originator in the ordinary course of its
respective business or (B) has been originated or acquired directly by the Originator
in accordance with its customary practices;
	 
	 	(iii)	 	as of the Closing Date is secured by a first priority validly perfected
security interest in the Financed Vehicle in favor of the Originator, as secured party,
or all necessary actions have been commenced that would result in a first priority
security interest in the Financed Vehicle in favor of the Originator, as secured party,
which security interest, in either case, is assignable and has been so assigned (x) by
BANA to the Purchaser and (y) by the Purchaser to the Issuer;
	 
	 	(iv)	 	contains customary and enforceable provisions such that the rights and remedies
of the holder thereof are adequate for realization against the collateral of the
benefits of the security;
	 
	 	(v)	 	provides, at origination, for level monthly payments which fully amortize the
initial Outstanding Principal Balance over the original term; provided, that the amount
of the first or last payment may be different but in no event more than three times the
level monthly payment;
	 
	 	(vi)	 	provides for interest at the Contract Rate specified in the Schedule of
Receivables; and
	 
	 	(vii)	 	was originated in the United States.

	(b)	 	Individual Characteristics. Each Receivable has the following individual characteristics as
of the Cut-Off Date:

	 	(i)	 	each Receivable is secured by a new or used automobile or light-duty truck;
	 
	 	(ii)	 	each Receivable has a Contract Rate of no less than [     ]% and not more than [     ]%;
	 
	 	(iii)	 	each Receivable had an original term to maturity of not more than [     ]
months and not less than [     ] months and each Receivable has a remaining term to
maturity, as of the Cut-Off Date, of [     ] month[s] or more;

Purchase
Agreement
 (20[   ]-[  ])

Schedule I -1 

 

	 	(iv)	 	each Receivable has an Outstanding Principal Balance as of the Cut-Off Date of
greater than or equal to $[     ];
	 
	 	(v)	 	no Receivable has a scheduled maturity date later than [               ];
	 
	 	(vi)	 	no Receivable was more than 30 days past due as of the Cut-Off Date;
	 
	 	(vii)	 	as of the Cut-Off Date, no Receivable was noted in the records of BANA or the
Servicer as being the subject of any pending bankruptcy or insolvency Proceeding;
	 
	 	(viii)	 	each Receivable is a Simple Interest Receivable;
	 
	 	(ix)	 	each of the Receivables were selected using selection procedures that were not
known or intended by BANA or the Servicer to be adverse to the Purchaser; and
	 
	 	(x)	 	the Dealer of the Financed Vehicle has no participation in, or other right to
receive, any proceeds of such Receivable.

	(c)	 	Schedule of Receivables. The information with respect to each Receivable transferred on the
Closing Date set forth in the Schedule of Receivables was true and correct in all material
respects as of the Cut-Off Date.
	 
	(d)	 	Compliance with Law. Each Receivable complied at the time it was originated or made, in all
material respects with all requirements of applicable federal, state and local laws, and
regulations thereunder, including, to the extent applicable, usury laws, the Federal Truth in
Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Federal
Trade Commission Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the
Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and Z, the Servicemembers
Civil Relief Act, state adaptations of the National Consumer Act and of the Uniform Consumer
Credit Code and any other consumer credit, equal opportunity and disclosure laws applicable to
that Receivable.
	 
	(e)	 	Binding Obligation. Each Receivable constitutes the legal, valid and binding payment
obligation in writing of the Obligor, enforceable in all respects by the holder thereof in
accordance with its terms, subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles relating to or
affecting the enforcement of creditors’ rights generally.
	 
	(f)	 	Receivable in Force. The Receivable has not been satisfied, subordinated or rescinded nor
has the related Financed Vehicle been released from the lien granted by the Receivable in
whole or in part.
	 
	(g)	 	No Waiver. As of the Cut-Off Date, no provision of a Receivable has been waived.
	 
	(h)	 	No Default. Except for payment delinquencies continuing for a period of not more than 30
days as of the Cut-Off Date, the records of the Servicer did not disclose that any default,
breach, violation or event permitting acceleration under the terms of the

Purchase
Agreement
 (20[   ]-[  ])

Schedule I -2 

 

	 	 	Receivable existed as of the Cut-Off Date or that any continuing condition that with notice
or lapse of time, or both, would constitute a default, breach, violation or event permitting
acceleration under the terms of the Receivable had arisen as of the Cut-Off Date.
	 
	(i)	 	Insurance. Each Receivable requires the Obligor thereunder to insure the Financed Vehicle
under a physical damage insurance policy.
	 
	(j)	 	No Government Obligor. The Obligor on each Receivable is not the United States of America or
any state thereof or any local government, or any agency, department, political subdivision or
instrumentality of the United States of America or any state thereof or any local government.
	 
	(k)	 	Assignment. No Receivable has been originated in, or is subject to the laws of, any
jurisdiction under which the sale, transfer, assignment, conveyance or pledge of such
Receivable would be unlawful, void, or voidable. BANA has not entered into any agreement with
any Obligor that prohibits, restricts or conditions the assignment of the related Receivable.
	 
	(l)	 	Good Title. It is the intention of BANA that the sale, contribution, transfer, assignment
and conveyance herein contemplated constitute an absolute sale, contribution, transfer,
assignment and conveyance of the Receivables and that the Receivables not be part of BANA’s
estate in the event of the filing of a bankruptcy petition by or against the Purchaser under
any bankruptcy law. No Receivable has been sold, transferred, assigned, conveyed or pledged to
any Person other than pursuant to the Transaction Documents. As of the Closing Date, and
immediately prior to the sale and transfer herein contemplated, BANA had good and marketable
title to each Receivable free and clear of all Liens, and, immediately upon the sale and
transfer thereof, the Purchaser will have good and marketable title to each Receivable, free
and clear of all Liens (other than Permitted Liens).
	 
	(m)	 	Filings. All filings (including, without limitation, UCC filings) necessary in any
jurisdiction to give the Issuer a first priority, validly perfected ownership interest in the
Receivables (other than the Related Security with respect thereto), and to give the Indenture
Trustee a first priority perfected security interest therein, will be made within ten days of
the Closing Date.
	 
	(n)	 	Priority. The Receivable is not pledged, assigned, sold, subject to a security interest, or
otherwise conveyed other than pursuant to the Transaction Documents. BANA has not authorized
the filing of and is not aware of any financing statements against BANA or the Purchaser that
include a description of collateral covering the Receivables other than any financing
statement relating to security interests granted under the Transaction Documents or that have
been terminated. The Purchase Agreement creates a valid and continuing security interest in
the Receivable (other than the Related Security with respect thereto) in favor of the
Purchaser which security interest is prior to all other Liens (other than Permitted Liens) and
is enforceable as such against all other creditors of and purchasers and assignees from the
Purchaser.

Purchase
Agreement
 (20[   ]-[  ])

Schedule I -3 

 

	(o)	 	Characterization of Receivables. Each Receivable constitutes either “tangible chattel
paper”, an “account”, a “promissory note” or a “payment intangible”, each as defined in the
UCC.
	 
	(p)	 	One Original. There is only one executed original (with respect to tangible chattel paper)
or authoritative copy (with respect to electronic chattel paper) related to each Receivable.
If such original has been marked, then such original does not have any marks or notations
indicating that it has been pledged, assigned or otherwise conveyed to any Person other than
to a party to the Transaction Documents.
	 
	(q)	 	No Defenses. BANA has no knowledge either of any facts which would give rise to any right of
rescission, set-off, counterclaim or defense, or of the same being asserted or threatened,
with respect to any Receivable.
	 
	(r)	 	No Repossession. As of the Cut-Off Date, no Financed Vehicle shall have been repossessed.

Purchase
Agreement
 (20[   ]-[  ])

Schedule I -4 

 

     SCHEDULE II

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

     In addition to the representations, warranties and covenants contained in the Agreement, BANA
hereby represents, warrants, and covenants to the Purchaser as follows on the Closing Date:

General

     1. This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Receivables and the other Purchased Assets in favor of the Purchaser, which
security interest is prior to all other Liens, and is enforceable as such against creditors of and
purchasers from BANA.

     2. The Receivables constitute “chattel paper” (including “electronic chattel paper” or
“tangible chattel paper”) “accounts,” “instruments” or “general intangibles,” within the meaning of
the applicable UCC.

     3. Each Receivable is secured by a first priority validly perfected security interest in the
related Financed Vehicle in favor of the Originator, as secured party, or all necessary actions
with respect to such Receivable have been taken or will be taken to perfect a first priority
security interest in the related Financed Vehicle in favor of the Originator, as secured party.

Creation

     4. Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by BANA
to the Purchaser, BANA owned and had good and marketable title to such Receivable free and clear of
any Lien and immediately after the sale, transfer, assignment and conveyance of such Receivable to
the Purchaser, the Purchaser will have good and marketable title to such Receivable free and clear
of any Lien.

     5. The related Originator has received all consents and approvals to the sale of the
Receivables hereunder to the Purchaser required by the terms of the Receivables that constitute
instruments.

Perfection

     6. BANA has caused or will have caused, within ten days after the effective date of this
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 security interest in the
Receivables granted to the Purchaser hereunder; and the Servicer, in its capacity as custodian, has
in its possession the original copies of such instruments or tangible chattel paper that constitute
or evidence the Receivables, and all financing statements referred to in this paragraph contain a
statement that: “A purchase of or security interest in any collateral described in this financing
statement will violate the rights of the Secured Party/Purchaser”.

Purchase
Agreement
 (20[   ]-[  ])

Schedule II - 1

 

     7. With respect to Receivables that constitute an instrument or tangible chattel paper,
either:

	 	a.	 	All original executed copies of each such instrument or
tangible chattel paper have been delivered to the Indenture Trustee; or
	 
	 	b.	 	Such instruments or tangible chattel paper are in the
possession of the Servicer and the Indenture Trustee has received a written
acknowledgment from the Servicer that the Servicer (in its capacity as
custodian) is holding such instruments or tangible chattel paper solely on
behalf and for the benefit of the Indenture Trustee; or
	 
	 	c.	 	The Servicer received possession of such instruments or
tangible chattel paper after the Indenture Trustee received a written
acknowledgment from the Servicer that the Servicer is acting solely as agent of
the Indenture Trustee.

Priority

     8. BANA has not authorized the filing of, and is not aware of, any financing statements
against BANA that include a description of collateral covering the Receivables other than any
financing statement (i) relating to the conveyance of the Receivables by BANA under the Purchase
Agreement, (ii) relating to the conveyance of the Receivables by the Seller to the Issuer under the
Sale and Servicing Agreement, (iii) relating to the security interest granted to the Indenture
Trustee under the Indenture or (iv) that has been terminated.

     9. BANA is not aware of any material judgment, ERISA or tax lien filings against BANA.

     10. Neither BANA nor a custodian or vaulting agent thereof holding any Receivable that is
electronic chattel paper has communicated an authoritative copy of any loan agreement that
constitutes or evidences such Receivable to any Person other than the Servicer.

     11. None of the instruments, tangible chattel paper or electronic chattel paper that
constitutes or evidences the Receivables has any marks or notations indicating that they have been
pledged, assigned or otherwise conveyed to any Person other than the Purchaser, the Issuer or the
Indenture Trustee.

Survival of Perfection Representations

     12. Notwithstanding any other provision of the Purchase Agreement or any other Transaction
Document, the perfection representations, warranties and covenants contained in this Schedule
II shall be continuing, and remain in full force and effect until such time as all obligations
under the Transaction Documents and the Notes have been finally and fully paid and performed.

Purchase
Agreement
 (20[   ]-[  ])

Schedule II - 2

 

No Waiver

     13. The parties to the Purchase Agreement shall provide the Rating Agencies with prompt
written notice of any breach of the perfection representations, warranties and covenants contained
in this Schedule II, and shall not, without satisfying the Rating Agency Condition, waive a
breach of any of such perfection representations, warranties or covenants.

Purchase
Agreement
 (20[   ]-[  ])

Schedule II - 3exv10w3

EXHIBIT 10.3

(Multicurrency—Cross Border)

ISDA®

International Swap Dealers Association, Inc.

MASTER AGREEMENT

dated as of [          ]

     [_________] and Banc of America Auto Securities Trust 20[ ]-[ ]
 have entered and/or anticipate entering into one or more transactions (each a “Transaction”) that
are or will be governed by this Master Agreement, which includes the schedule (the “Schedule”), and
the documents and other confirming evidence (each a “Confirmation”) exchanged between the parties
confirming those Transactions.

Accordingly, the parties agree as follows:

1. Interpretation

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

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

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

2. Obligations

(a) General Conditions.

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

(ii) Payments under this Agreement will be made on the due date for value on that date in
the place of the account specified in the relevant Confirmation or otherwise

Copyright © 1992 by International Swap Dealers Association, Inc 

 

 

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

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

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

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

(i) in the same currency; and

(ii) in respect of the same Transaction,

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

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

(d) Deduction or Withholding for Tax.

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

2

 

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

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

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

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

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

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

(ii) Liability. If:

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

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

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

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

(e) Default Interest; Other Amounts. Prior to the occurrence or effective designation of an Early
Termination Date in respect of the relevant Transaction, a party that defaults in the

3

 

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

3. Representations

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

(a) Basic Representations.

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

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

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

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

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

(b) Absence of Certain Events. No Event of Default or Potential Event of Default or, to its
knowledge, Termination Event with respect to it has occurred and is continuing and no such

4

 

event or circumstance would occur as a result of its entering into or performing its obligations
under this Agreement or any Credit Support Document to which it is a party.

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

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

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

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

4. Agreements

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

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

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

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

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

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

5

 

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

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

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

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

5. Events of Default and Termination Events

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

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

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

(iii) Credit Support Default.

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

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

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

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

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

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

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

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

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

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

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

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

8

 

pursuant to (iv) below or an Additional Termination Event if the event is specified pursuant to (v)
below:

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

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

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

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

(iii) Tax Event Upon Merger. The party (the “Burdened Party”) on the next succeeding
Scheduled Payment Date will either (1) be required to pay an additional amount in respect of
an Indemnifiable Tax under Section 2(d)(i)(4) (except in respect of interest under Section
2(e), 6(d)(ii) or 6(e)) or (2) receive a payment from which an amount has been deducted or
withheld for or on account of any Indemnifiable Tax in respect of which the other party is
not required to pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with, or merging
with or into, or transferring all or substantially all its assets to, another entity (which
will be the Affected Party) where such action does not constitute an event described in
Section 5(a)(viii);

(iv) Credit Event Upon Merger. If “Credit Event Upon Merger” is specified in the Schedule
as applying to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges with or into,
or transfers all or substantially all its assets, to, another entity and such action does
not constitute an event described in Section 5(a)(viii) but the creditworthiness of the

9

 

resulting, surviving or transferee entity is materially weaker than that of X, such Credit
Support Provider or such Specified Entity, as the case may be, immediately prior to such
action (and, in such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

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

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

6. Early Termination

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

(b) Right to Terminate Following Termination Event.

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

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

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

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

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

(iv) Right to Terminate. If:

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

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

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

(c) Effect of Designation.

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

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

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(d) Calculations.

(i) Statement. On or as soon as reasonably practicable following the occurrence of an Early
Termination Date, each party will make the calculations on its part, if any, contemplated by
Section 6(e) and will provide to the other party a statement (1) showing, in reasonable
detail, such calculations (including all relevant quotations and specifying any amount
payable under Section 6(e)) and (2) giving details of the relevant account to which any
amount payable to it is to be paid. In the absence of written confirmation from the source
of a quotation obtained in determining a Market Quotation, the records of the party
obtaining such quotation will be conclusive evidence of the existence and accuracy of such
quotation.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

7. Transfer

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

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

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

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

8. Contractual Currency

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

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

(c) Separate Indemnities. To the extent permitted by applicable law, these indemnities constitute
separate and independent obligations from the other obligations in this Agreement, will be
enforceable as separate and independent causes of action, will apply notwithstanding any indulgence
granted by the party to which any payment is owed and will not be affected by judgment being
obtained or claim or proof being made for any other sums payable in respect of this Agreement.

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

9. Miscellaneous

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

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

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

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

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(e) Counterparts and Confirmations.

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

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

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

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

10. Offices; Multibranch Parties

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

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

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

11. Expenses

A Defaulting Party will, on demand, indemnify and hold harmless the other party for and against all
reasonable out-of-pocket expenses, including legal fees and Stamp Tax, incurred by such other party
by reason of the enforcement and protection of its rights under this Agreement or any

16

 

Credit Support Document to which the Defaulting Party is a party or by reason of the early
termination of any Transaction, including, but not limited to, costs of collection.

12. Notices

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

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

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

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

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

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

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

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

13. Governing Law and Jurisdiction

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

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

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

17

 

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

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

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

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

14. Definitions

As used in this Agreement:

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

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

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

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

“Applicable Rate” means:

18

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

19

 

but excluding a connection arising solely from such recipient or related person having executed,
delivered, performed its obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

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

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

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

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

20

 

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

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

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

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

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

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

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

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

21

 

“Set-off” means set-off, offset, combination of accounts, right of retention or withholding or
similar right or requirement to which the payer of an amount under Section 6 is entitled or subject
(whether arising under this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

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

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

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

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

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

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

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

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

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

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

22

 

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

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

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

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

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

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

23

 

Termination Currency Equivalents of the fair market values reasonably determined by both parties.

24

 

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

	 	 	 	 	 	 	 
	[____________________________]	 	BANC OF AMERICA AUTO SECURITIES TRUST 20[ ]-[ ]
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	[__________________], not in its
	 	 	 	 	individual capacity but solely as owner trustee
	 
	 	 	 	 	 	 
	(Name of Party)	 	(Name of Party)
	 
	 	 	 	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	Name:

	 	 	 	Name:	 	 
	 

	 	 
	 	 	 	 
	Title:

	 	 	 	Title:	 	 
	 

	 	 
	 	 	 	 
	Date:

	 	 	 	Date:	 	 
	 

	 	 
	 	 	 	 

25

 

ISDA

International Swap Dealers Association, Inc.

SCHEDULE

to the

Master Agreement

          dated as of [          
           ]

between [_________] and Banc of America Auto Securities Trust 200[ ] — [ ]

(“Party
A”)                                  (“Party B”)

Part 1. Termination Provisions.

	(a)	 	The following shall apply:

		 	(i) Termination by Party A — Events of Default. Notwithstanding the provisions of Section
5(a), the only events which will constitute Events of Default when they occur in relation
to Party B will be those events specified in Sections 5(a)(i) (Failure To Pay Or Deliver)
and Section 5(a)(vii) (Bankruptcy), other than the events specified in Section
5(a)(vii)(2).
	 
	 	 	Accordingly, the provisions of Section 5(a)(ii) (Breach Of Agreement), the provisions of
Section 5(a)(iii) (Credit Support Default), the provisions of Section 5(a)(iv)
(Misrepresentation), the provisions of Section 5(a)(v) (Default Under Specified
Transaction), the provisions of Section 5(a)(vi) (Cross Default), the provisions of
Section 5(a)(vii)(2) (insolvency) and the provisions of Section 5(a)(viii) (Merger Without
Assumption) will in no circumstances be regarded as having given rise to an Event of
Default with respect to Party B.
	 
		 	(ii) Termination by Party A — Termination Events Notwithstanding the provisions of
Section 5(b), and save as otherwise provided herein, the only events which will constitute
Termination Events when they occur in relation to Party B will be those events specified
in Section 5(b)(i) (Illegality) and Section 5(b)(v) (Additional Termination Event). Accordingly, the provisions of Section 5(b)(iv) (Credit Event Upon

 

 

	 	 	
Merger) will not be regarded as having given rise to a Termination Event with respect to
Party B and Party A may not designate an Early Termination Date related to the provisions
of Section 5(b)(ii) (Tax Event) or the provisions of Section 5(iii) (Tax Event Upon
Merger).
	 
		 	(iii) Termination by Party B - Events of Default and Termination Events. Save as otherwise
provided herein, the provisions of Section 5 will apply with respect to Party A without
amendment save for Section 5(a)(vi) (Cross Default) which will in no circumstances be
regarded as having given rise to an Event of Default with respect to Party A and the
provisions of Section 5(b)(iii) will apply to Party A provided that Party A shall not be
entitled to designate an Early Termination Date by reason of a Tax Event Upon Merger in
respect of which it is the Affected Party.

	(b)	 	“Specified Entity” none specified in relation to either Party A or Party B.
	 
	(c)	 	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement.
	 
	(d)	 	The “Automatic Early Termination” provision of Section 6(a) of this Agreement will not apply
to Party A and will not apply to Party B.
	 
	(e)	 	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:
	 
	 	 	Market Quotation will apply and the Second Method will apply; provided,
however, with respect to an early termination in which Party A is the Defaulting
Party or sole Affected Party in respect of an Additional Termination Event or Tax Event
Upon Merger, notwithstanding Section 6 of this Agreement, the following amendment to this
Agreement set forth in paragraphs (i) to (ix) below shall apply:
	 
	 	 	The definition of “Market Quotation” shall be deleted in its entirety and replaced with the
following:
	 
	 	 	“Market Quotation” means, with respect to one or more Terminated Transactions, a Firm Offer
which is (1) made by a Reference Market-maker that is an Eligible Replacement with Rated
Debt, (2) for an amount that would be paid to Party B (expressed as a negative number) or by
Party B (expressed as a positive number) in consideration of an agreement between Party B
and such Reference Market-maker to enter into a transaction (the “Replacement Transaction”) that would have the effect of

Schedule to ISDA 
Master Agreement

2

 

	 	
preserving for such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction of each
applicable condition precedent) by the parties under Section 2(a)(i) in respect of such
Terminated Transactions or group of Terminated Transactions that would, but for the
occurrence of the relevant Early Termination Date, have been required after that Date, (3)
made on the basis that Unpaid Amounts in respect of the Terminated Transaction or group of
Transactions are to be excluded but, without limitation, any payment or delivery that would,
but for the relevant Early Termination Date, have been required (assuming satisfaction of
each applicable condition precedent) after that Early Termination Date is to be included and
(4) made in respect of a Replacement Transaction with commercial terms substantially the
same as those of this Agreement (save for the exclusion of provisions relating to
Transactions that are not Terminated Transactions).”
	 
	 	(iii) The definition of “Settlement Amount” shall be deleted in its entirety and replaced
with the following:
	 
	 	“Settlement Amount” means, with respect to any Early Termination Date, an amount (as
determined by Party B) equal to:
	 
	 	(a)	If a Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally binding on or
before the day falling ten Local Business Days after the day on which the Early
Termination Date is designated (or such later day as Party B may specify in writing to
Party A, which in any event will not be later than the Early Termination Date) (such
day, the “Latest Settlement Amount Determination Day”), the Termination Currency
Equivalent of the amount (whether positive or negative) of such Market Quotation; or
	 
	 	(b)	If no Market Quotation for the relevant Terminated Transaction or group of
Terminated Transactions is accepted by Party B so as to become legally binding on or
before the Latest Settlement Amount Determination Day, Party B’s Loss (whether positive
or negative and without reference to any Unpaid Amounts) for the relevant Terminated
Transaction or group of Terminated Transactions.
	 
	 	
 (iv) For the purpose of clause (4) of the definition of Market Quotation, Party B shall
determine in its sole discretion, acting in a commercially reasonable manner, whether a

Schedule to ISDA 
Master Agreement

3

 

		 	 Firm
Offer is made in respect of a Replacement Transaction with commercial terms substantially
the same as those of this Agreement (save for the exclusion of provisions relating to
Transactions that are not Terminated Transactions).
	 
		 	(v) Party B undertakes to use its reasonable efforts to obtain at least one Market Quotation
before the Latest Settlement Amount Determination Day.
	 
		 	(vi) Party B will be deemed to have discharged its obligations under (v) above if it
requests Party A to obtain Market Quotations, where such request is made in writing within
two Local Business Days after the day on which the Early Termination Date is designated.
	 
		 	(vii) if Party B requests Party A in writing to obtain Market Quotations, Party A shall use
its reasonable efforts to do so before the Latest Settlement Amount Determination Day.
	 
		 	(viii) Any amount calculated as being due in respect of an Early Termination Date will be
payable in accordance with Section 6(d)(ii), provided that if such payment is owed to Party
B, it will be payable on the day that notice of the amount payable is given to Party A.
	 
		 	(ix) If the Settlement Amount is a negative number, Section 6(e)(i)(3) of this Agreement
shall be deleted in its entirety and replaced with the following:
	 
	 	 	“Second Method and Market Quotation”. If Second Method and Market Quotation apply, (1) Party
B shall pay to Party A an amount equal to the absolute value of the Settlement Amount in
respect of the Terminated Transactions, (2) Party B shall pay to Party A the Termination
Currency Equivalent of the Unpaid Amounts owing to Party A and (3) Party A shall pay to
Party B the Termination Currency Equivalent of the Unpaid Amounts owing to Party B, provided
that, (i) the amounts payable under (2) and (3) shall be subject to netting in accordance
with Section 2(c) of this Agreement and (ii) notwithstanding any other provision of this
Agreement, any amount payable by Party A under (3) shall not be netted-off against any
amount payable by Party B under (1).”.

	(f)	 	“Termination Currency” means U.S. Dollars.
	 
	(g)	 	Additional Termination Event will apply. Each of the following events shall constitute an
Additional Termination Event hereunder:

Schedule to ISDA 
Master Agreement

4

 

	 		 	(i) Acceleration of the Notes. The following shall constitute an Additional
Termination Event in which Party B shall be the sole Affected Party: Any
acceleration of the Notes outstanding occurs following an event of default under the
Indenture.
	 
	 		 	(ii) Regulation AB Financial Disclosure. The following shall constitute an
Additional Termination Event in which Party A shall be the sole Affected Party:
The failure of Party A to materially comply with or materially perform any agreement
or undertaking to be complied with or performed by Party A under Part 5(t).
	 
	 		 	(iii) S&P Downgrade of Party A. The failure by Party A to post Eligible Collateral
or to obtain a guarantee in accordance with Part 5(u) and with the terms of the
Credit Support Annex or to transfer its rights and obligations hereunder to a
Qualified Counterparty in accordance with Part 5(u) shall constitute an Additional
Termination Event for which Party A shall be the sole Affected Party.
	 
	 		 	(iv) Moody’s First Rating Trigger Collateral. The following shall constitute an
Additional Termination Event in which Party A is the sole Affected Party: Party A
has failed to comply with or perform any obligation to be complied with or performed
by Party A in accordance with the Credit Support Annex from time to time entered
into between Party A and Party B in relation to this Agreement and either (x) the
Moody’s Second Rating Trigger Requirements do not apply or (y) less than 30 Local
Business Days have elapsed since the last time the Moody’s Second Rating Trigger
Requirements did not apply.
	 
	 		 	(v) Moody’s Second Rating Trigger Replacement. The following shall constitute an
Additional Termination Event in which Party A is the sole Affected Party: (x) The
Moody’s Second Rating Trigger Requirements apply and 30 or more Local Business Days
have elapsed since the last time the Moody’s Second Rating Trigger Requirements did
not apply and (y) (A) at least one Eligible Replacement has made a Firm Offer (which
remains capable of becoming legally binding upon acceptance) to be the transferee of
a transfer to be made in
accordance with Part 5(e) below and/or (B) at least one entity with the Moody’s
First Trigger Required Ratings and/or the Moody’s Second Trigger Required Ratings
has made a Firm Offer (which remains capable of becoming legally

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	 	 	 	binding upon
acceptance by the offeree) to provide an Eligible Guarantee in respect of all of
Party A’s present and future obligations under this Agreement.
	 
	 	 	 	For the purpose of Part 1(e) and sub-paragraphs (iv) and (v) above:
	 
	 	 	 	“Eligible Guarantee” means an unconditional and irrevocable guarantee that is
provided by a guarantor as principal debtor rather than surety and is directly
enforceable by Party B, where either (A) a law firm has given a legal opinion
confirming that none of the guarantor’s payments to Party B under such guarantee
will be subject to withholding for tax or (B) such guarantee provides that, in the
event that any of such guarantor’s payments to Party B are subject to withholding
for tax, such guarantor is required to pay such additional amount as is necessary to
ensure that the net amount actually received by Party B (free and clear of any
withholding tax) will equal the full amount Party B would have received had no such
withholding been required.
	 
	 	 	 	“Eligible Replacement” means an entity (A) with the Moody’s First Trigger Required
Ratings and/or the Moody’s Second Trigger Required Ratings that is the subject of a
legal opinion given by a law firm confirming that none of its payments to Party B
will be subject to withholding for tax or (B) whose present and future obligations
owing to Party B are guaranteed pursuant to an Eligible Guarantee provided by a
guarantor with the Moody’s First Trigger Required Ratings and/or the Moody’s Second
Trigger Required Ratings.
	 
	 	 	 	“Firm Offer” means an offer which, when made, was capable of becoming legally
binding upon acceptance.
	 
	 	 	 	“Moody’s Short-term Rating” means a rating assigned by Moody’s under its short-term
rating scale in respect of an entity’s short-term, unsecured and unsubordinated debt
obligations

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	 	 	 	“Relevant Entities” means Party A and any guarantor under an Eligible Guarantee in
respect of all of Party A’s present and future obligations under this Agreement.
	 
	 		 	(A) The “Moody’s First Rating Trigger Requirements” shall apply so long as no
Relevant Entity has the Moody’s First Trigger Required Ratings.
	 
	 	 	 	An entity shall have the “Moody’s First Trigger Required Ratings” (x) where such
entity is the subject of a Moody’s Short-term Rating, if such rating is “Prime-1”
and its long-term, unsecured and unsubordinated debt obligations are rated “A2” or
above by Moody’s and (y) where such entity is not the subject of a Moody’s
Short-term Rating, if its long-term, unsecured and unsubordinated debt obligations
are rated “A1” or above by Moody’s.
	 
	 		 	(B) So long as the Moody’s First Rating Trigger Requirements apply, Party A will at
its own cost use commercially reasonable efforts to, as soon as reasonably
practicable, (x) procure an Eligible Guarantee in respect of all of Party A’s
present and future obligations under this Agreement to be provided by a guarantor
with the Moody’s First Trigger Required Ratings, (y) transfer to Party B the amount
of Eligible Collateral required under the Credit Support Annex or (y) transfer this
Agreement in accordance with Part 5(e) below.
	 
	 		 	(C) The “Moody’s Second Rating Trigger Requirements” shall apply so long as no
Relevant Entity has the Moody’s Second Trigger Required Ratings.
	 
	 	 	 	An entity shall have the “Moody’s Second Trigger Required Ratings” (x) where such
entity is the subject of a Moody’s Short-term Rating, if such rating is “Prime-2” or
above and its long-term, unsecured and unsubordinated debt obligations are rated
“A3” or above by Moody’s and (y) where such entity is not the subject of a Moody’s
Short-term Rating, if its long-term, unsecured and unsubordinated debt obligations
are rated “A3” or above by Moody’s.
	 
	 		 	(D) So long as the Moody’s Second Rating Trigger Requirements apply, Party A will at
its own cost use commercially reasonable efforts to, as soon as reasonably
practicable, either (x) procure an Eligible Guarantee in respect of all of Party A’s
present and future obligations under this Agreement to be provided

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	 	 	 	by a guarantor with the Moody’s First Trigger Required Ratings and/or the Moody’s
Second Trigger Required Ratings or (y) transfer this Agreement in accordance with
Part 5(e) below, and in both the case of (x) and (y), transfer to Party B the amount
of Eligible Collateral required under the Credit Support Annex.
	 
	 	 	 	In the event of an Early Termination Date in respect of a Party A Rating Downgrade,
a Moody’s First Rating Trigger Replacement or a Moody’s Second Rating Trigger
Replacement and the entering into by Party B of alternative swap arrangements, Party
A shall pay all reasonable out-of-pocket expenses, including legal fees and stamp
taxes, relating to the entering into of such alternative swap arrangements.

Part 2. Tax Representations

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

	 	(i)	 	Party A represents that it is a [type of entity] organized under the laws of
[      ].

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	 	(ii)	 	Party B represents that it is a [Delaware statutory trust] organized or
formed under the laws of the State of [Delaware].

Part 3. Agreement to Deliver Documents.

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

	(a)	 	Tax forms, documents or certificates to be delivered are:
	 
	 	 	Party A and Party B shall promptly deliver to the other party (or as directed) any form or
document accurately completed and in a manner reasonably satisfactory to the other party
that may be required or reasonably requested in order to allow the other party to make a
payment under a Transaction without any deduction or withholding for or on account of any
Tax or with such deduction or withholding at a reduced rate, promptly upon reasonable demand
by the other party.

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	(b)	 	Other documents to be delivered are:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by Section
	Party required to	 	Form/Document/	 	Date by which to be	 	3(d) Representation
	deliver document	 	Certificate	 	delivered	 	of this Agreement
	Party A and Party B

	 	Evidence of the
authority of the
signatories of this
Agreement including
specimen signatures
of such
signatories.
	 	Upon execution of
this Agreement.
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	An opinion of
counsel addressed
to Party B in form
and substance
reasonably
acceptable to Party
B.
	 	Upon execution of
this Agreement.
	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An opinion of Party
B’s counsel
addressed to Party
A in form and
substance
reasonably
acceptable to Party
A.
	 	Upon execution of
this Agreement.
	 	No

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	 	 	 	 	 	 	Covered by Section
	Party required to	 	Form/Document/	 	Date by which to be	 	3(d) Representation
	deliver document	 	Certificate	 	delivered	 	of this Agreement
	Party B

	 	A duly executed
certificate of the
secretary or
assistant secretary
of the Owner
Trustee of Party B
certifying the name
and true signature
of each person
authorized to
execute this
Agreement and enter
into Transactions
for Party B.
	 	Upon execution of
this Agreement.
	 	Yes
	 
	 	 	 	 	 	 
	Party B

	 	Copies of executed
Indenture and Sale
and Servicing
Agreement.
	 	Upon execution of
such Agreements
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Financial data
relating to Party
A, as required
pursuant to Part
5(t) of this
Schedule.
	 	As required
pursuant to Part
5(t) of this
Schedule.
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	Executed
Indemnification and
Disclosure
Agreement, among
Party A, Bank of
America, National
Association and BAS
Securitization LLC,
relating to Party
A’s furnished
information for use
in the Prospectus
and other matters.
	 	Upon or prior to
execution of this
Agreement
	 	Yes

Part
4. Miscellaneous.

	(a)	 	Addresses for Notices. For the purpose of Section 12(a) of this Agreement:
	 
	 	 	Address for notices or communications to Party A:
	 
	 	 	Address: [           ]

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	 	 	Attention: [       ]
	 
	 	 	Facsimile
No.:                                  
        Telephone No.:                                 
       
	 
	 	 	Electronic Messaging System Details: [       ]
	 	 	               
	 	 	Address for notices or communications to Party B:
               

	 	 	Address: c/o [            ], as Owner Trustee

	 	 	 	[           ]
	 
	 	 	 	[           ]

	 	 	Attention:       [           ]
	 
	 	 	Telex No.:  Not applicable       Answerback:  Not applicable

	 	 	Facsimile No.: [       ]              Telephone No.: [       ]
	 
	 	 	Electronic Messaging System Details: [       ]
	 	 	               
	 	 	With a copy to:
	 	 	               
	 	 	Bank of America, National Association
	 
	 	 	100 North Tryon Street
	 
	 	 	Charlotte, North Carolina 28258
	 
	 	 	Attention: [        ]
	 
	 	 	Telephone No.: [       ]
	 
	 	 	Facsimile No.: [       ]
	 	 	               
	 	 	With a copy to the Indenture Trustee at:
	 	 	               
	 	 	Address: [       ]
	 
	 	 	Attention: [       ]
	 
	 	 	Telex No.: Not applicable            Answerback: Not applicable
	 
	 	 	Facsimile No.: [       ]                   Telephone No.: [      ]
	 
	 	 	Electronic Messaging System Details: [       ]

	(b)	 	Process Agent. For the purpose of Section 13(c) of this Agreement:
	 
	 	 	Party A appoints as its Process Agent       [       ]
	 
	 	 	Party B appoints as its Process Agent       Not applicable

	(c)	 	Notices. Section 12(a) of the Agreement is amended by adding the words in the third line
thereof after the phrase “messaging system” and before the “)” the words “;

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	 	 	 provided,
however, any such notice or other communication may be given by facsimile transmission if
telex is unavailable, no telex number is supplied by the party providing notice, or if answer
back confirmation is not received from the party to whom the telex is sent.”

	(d)	 	Offices. The provisions of Section 10(a) of this Agreement will apply to this Agreement.
	 
	(e)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement:
	 
	 	 	Party A [is] [is not] a Multibranch Party and, if so, may act through the following
offices:
	 
	 	 	[specify].
	 
	 	 	Party B is not a Multibranch Party.
	 
	(f)	 	Calculation Agent. The Calculation Agent is Party B, unless otherwise specified in a
Confirmation in relation to the relevant Transaction.

	(g)	 	Credit Support Document. Details of any Credit Support Document:
	 
	 	 	With respect to Party A:            The Credit Support Annex
	 
	 	 	With respect to Party B:            Not applicable

	(h)	 	Credit Support Provider. Credit Support Provider means in relation to

	 	 	 	 	 
	 

	 	Party A:
	 	[Not applicable].
	 

	 	Party B:
	 	Not applicable.

	(i)	 	Governing Law. This Agreement will be governed by and construed in accordance with the laws
of the State of New York (without reference to choice of laws doctrine except Section 5-1401
and Section 5-1402 of the New York General Obligation Law).
	 
	(j)	 	Netting of Payments. The limitation set forth in Section 2(c)(ii) of this Agreement will
apply and therefore the netting in Section 2(c) of this Agreement will be limited to the same
Transaction.
	 
	(k)	 	“Affiliate” will have the meaning specified in Section 14 of this Agreement.
	 
	(l)	 	No Gross Up by Party B. Section 2(d)(i)(4) is hereby deleted and replaced by the following:

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“(4) (A) If Party A is the party so required to deduct or withhold, then Party A shall
make such additional payment as is necessary to ensure that the net amount actually
received by Party B (free and clear of all Taxes, whether assessed against it or Party B)
will equal the full amount Party B would have received had no such deduction or
withholding been required; and

(B) if Party B is the party so required to deduct or withhold, then Party B shall make the
relevant payment subject to such deduction or withholding.

For the avoidance of doubt, the fact that any payment is made by Party B subject to the
provisions of (B) above shall at no time affect the obligations of Party A under (A)
above.”

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Part 5. Other Provisions.

	(a)	 	ISDA Definitions
	 
	 	 	The definitions and provisions contained in the 2000 ISDA Definitions (the “2000
Definitions”) as published by the International Swaps and Derivatives Association, Inc.,
the 1998 FX and Currency Option Definitions (the “FX Definitions”), as published by ISDA,
the Emerging Markets Traders Association and The Foreign Exchange Committee, the 1996 ISDA
Equity Derivatives Definitions (the “Equity Definitions”) and the 1997 ISDA Government
Bond Option Definitions (the “Bond Definitions”) as published by the International Swaps
and Derivatives Association, Inc., the 2000 Definitions, the FX Definitions, the Equity
Definitions and the Bond Definitions together known as the “Definitions”, each are
incorporated by reference into this Agreement. The Agreement and each Transaction will be
governed by the Definitions as they may be officially amended and supplemented from time
to time by ISDA.
	 
	 	 	In the event of any inconsistency between the 2000 Definitions and the FX Definitions, the
FX Definitions shall prevail with respect to a FX Transaction or a Currency Option
Transaction as defined in the FX Definitions.
	 
	 	 	In the event of any inconsistency between the 2000 Definitions and the Equity Definitions,
the Equity Definitions shall prevail with respect to a Transaction as defined in the
Equity Definitions.
	 
	 	 	In the event of any inconsistency between the 2000 Definitions and the Bond Definitions,
the Bond Definitions shall prevail with respect to a Government Bond Option Transaction as
defined in the Bond Definitions.
	 
	 	 	For the sake of clarity, unless otherwise specified in this Agreement, the following
documents shall govern in the order in which they are listed in the event of any
inconsistency between any of the documents:

	 	(i)	 	the Confirmation;
	 
	 	(ii)	 	the Schedule;
	 
	 	(iii)	 	the Equity Definitions (solely with respect to Transactions as defined therein); and
the Bond Definitions (solely with respect to Government Bond Option Transactions

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as defined therein); and the FX Definitions (solely with respect to FX and Currency
Option Transactions as defined therein);

(iv) the 2000 Definitions; and

(v) the printed form of ISDA Master Agreement.

	(b)	 	Relationship Between Parties

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

(i) Non-Reliance. It is acting for its own account, and it has made its own independent
decisions to enter into that Transaction and as to whether that Transaction is appropriate
or proper for it based upon its own judgement and upon advice from such advisors as it has
deemed necessary. It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into that Transaction; it being
understood that information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to enter into
that Transaction. It has not received from the other party any assurance or guarantee as
to the expected results of that Transaction.

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

(iii) Status of Parties. Each party is acting as principal and not as agent and the other
party is not acting as a fiduciary for or as an advisor to it in respect of that
Transaction.

(iv) Eligible Contract Participant. It is an “eligible contract participant” as
defined in Section 1a(12) of the U.S. Commodity Exchange Act, 7 U.S.C. Section 1a(12).

(v) FDIC Requirements. If it is a bank subject to the requirements of 12 U.S.C. §
1823(e), the necessary action to authorize referred to in the representation in Section
3(a)(ii) includes all authorizations required under the Federal Deposit Insurance Act as
amended, including amendments effected by the Financial Institutions Reform,

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Recovery and
Enforcement Act of 1989, and under any agreement, writ, decree, or order entered into with
such party’s supervisory authorities. At all times during the term of this Agreement,
such party will continuously include and maintain as part of its official written books
and records this Agreement, this Schedule and all other exhibits, supplements, and
attachments hereto and documents incorporated by reference herein, all Confirmations, and
evidence of all necessary authorizations.

(vi) ERISA. It continuously represents that it is not (i) an employee benefit plan (an
“ERISA Plan”) as defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), subject to Title 1 of ERISA or Section 4975 of the Internal
Revenue Code of 1986, as amended, (ii) a person or entity acting on behalf of an ERISA
Plan or (iii) a person or entity the assets of which constitute assets of an ERISA Plan.”
It will provide notice to the other party in the event that it is aware that it is in
breach of any aspect of this representation or is aware that with the passing of time,
giving of notice or expiry of any applicable grace period, it will breach this
representation.

	(c)	 	Waiver of Jury Trial. Each party hereby irrevocably waives any and all rights to trial by
jury with respect to any legal proceeding arising out of or relating to this Agreement or any
Transaction contemplated hereby.
	 
	(d)	 	Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions of the Agreement or
affecting the validity or enforceability of such provision in any other jurisdiction unless
such severance shall substantially impair the benefits of the remaining portions of this
Agreement or changes the reciprocal obligations of the parties. The parties hereto shall
endeavour in good faith negotiations to replace the prohibited or unenforceable provision with
a valid provision, the economic effect of which comes as close as possible to that of the
prohibited or unenforceable provision.
	 
	(e)	 	Transfers. Notwithstanding the provisions of Section 7:

(i) No transfer by Party A of this Agreement or any interest or obligation in or of Party
A under this Agreement shall be effective unless:

	 	(A)	 	Party B consents to such transferee;

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	 	(B)	 	The Rating Agency Condition shall have been satisfied;
	 
	 	(C)	 	Party A shall have given Party B, the Servicer and the
Indenture Trustee at least twenty days prior written notice of the proposed
transfer; and
	 
	 	(D)	 	such transfer otherwise complies with the terms of the
Indenture and the other Transaction Agreements.

     Upon the effectiveness of any transfer, each of Party A and Party B shall be released
(in each case to the extent of the obligations so transferred) from its obligations as a
party to this Agreement without any further notification or other action.

(ii) Except to the extent contemplated by the Indenture, neither this Agreement nor any
interest in or under this Agreement may be transferred by Party B to any other entity save
with Party A’s prior written consent (such consent not to be unreasonably withheld or
delayed).

	(f)	 	Permitted Security Interest. For purposes of Section 7 of this Agreement, Party A hereby
consents to the Permitted Security Interest.

“Permitted Security Interest” means the pledge and assignment by Party B of the Swap
Collateral to the Indenture Trustee pursuant to the Indenture, and the granting to the
Indenture Trustee of a security interest in the Swap Collateral pursuant to the Indenture.

“Swap Collateral” means all right, title and interest of Party B in this Agreement, each
Transaction hereunder, and all present and future amounts payable by Party A to Party B
under or in connection with this Agreement or any Transaction governed by this Agreement,
including, without limitation, any transfer or termination of any such Transaction.

“Indenture Trustee” means [          ] or any successor, acting as Indenture
Trustee pursuant to the Indenture.

	(g)	 	Absence of Certain Events. Section 3(b) of this Agreement is hereby amended by inserting the
parenthetical “(with respect to Party A only)” immediately after the phrase “No Event of
Default or”.

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	(h)	 	Events of Default. Section 5(a)(i) of this Agreement is hereby amended by changing the word
“third” to “first” in the phrase “if such failure is not remedied on or before the third Local
Business Day after notice of such failure is given to the party” and the addition of the
following at the end thereof:

“, it being understood that amounts payable by Party B are not due except to the extent
set forth in Section 4.4(a) of the Sale and Servicing Agreement.”

	(i)	 	Payment on Early Termination. If an Early Termination Date occurs in respect of which Party
A is the Defaulting Party or the sole Affected Party with respect to an Additional Termination
Event, Party B will not be required to pay any amounts payable to Party A under Section 6(e)
in respect of such Early Termination Date, and Party A will not be permitted to set-off in
respect of such amounts, until payment in full of all amounts outstanding under the Notes.
	 
	(j)	 	No Set-Off. Party A and Party B hereby waive any and all right of set-off with respect to
any amounts due under this Agreement or any Transaction, provided that nothing herein shall be
construed to waive or otherwise limit the netting provisions contained in Sections 2(c) of
this Agreement.
	 
	(k)	 	Indenture. Party B hereby acknowledges that Party A is a secured party under the Indenture
with respect to this Agreement, and Party B agrees for the benefit of Party A that it will not
amend the Indenture in a manner which materially and adversely affects the rights or
obligations of Party A under the Indenture unless Party A shall have consented in writing to
such action (and such consent shall be deemed to have been given if Party A does not object in
writing within ten (10) business days after receipt of a written request for such consent).
	 
	(l)	 	No Recourse. The liability of Party B to Party A hereunder is limited in recourse solely to
the amounts payable to Party A from the Available Funds, Advances made on such Payment Date
and the Reserve Account Draw Amount in accordance with the priority of payments set forth in
Section 4.4(a) of the Sale and Servicing Agreement.
	 
	(m)	 	No Petition. Party A hereby covenants and agrees that prior to the date which is one year and
one day after payment in full of all obligations of each Bankruptcy Remote Party in respect of
all securities issued by any Bankruptcy Remote Party (i) it shall not authorize any Bankruptcy
Remote Party to commence a voluntary winding-up or other voluntary case or other proceeding
seeking liquidation, reorganization or other

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relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy,
insolvency or other similar law now or hereafter in effect in any jurisdiction or seeking
the appointment of an administrator, a trustee, receiver, liquidator, custodian or other
similar official with respect to such Bankruptcy Remote Party or any substantial part of
its property or to consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced
against such Bankruptcy Remote Party, or to make a general assignment for the benefit of
any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) it shall
not commence or join with any other Person in commencing any proceeding against such
Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency
law or statute now or hereafter in effect in any jurisdiction. This section shall
survive the termination of this Agreement.

As
used above, “Bankruptcy Remote Party” means BAS Securitization LLC and Party B.

	(n)	 	Confirmation. Each party acknowledges and agrees that the Confirmation executed as of the
date hereof and designated as Party A Global ID No. [       ] shall be the only Transaction
governed by this Agreement (it being understood that, in the event such Confirmations shall be
amended (in any respect), such amendment shall not constitute (for purposes of this paragraph)
a separate Transaction or a separate Confirmation). Party A and Party B shall not enter into
any additional Confirmations or Transactions hereunder.
	 
	(o)	 	Potential Events of Default. Section 2(a)(iii) is amended by the deletion of the words “or
Potential Event of Default”.
	 
	(p)	 	Limitation of Liability. Notwithstanding anything contained herein to the contrary, in
executing this Agreement (including the Schedule, Credit Support Annex and each Confirmation)
on behalf of Party B, [        ] (the “Owner Trustee”) and the Indenture Trustee
are acting solely in its capacity as owner trustee of Party B and indenture trustee,
respectively, and not in its individual capacity, and in no event shall either one of them, in
their individual capacity, have any liability for the representations, warranties, covenants,
agreements or other obligations of Party B hereunder, for which recourse shall be had solely
to the assets of Party B, except to the extent of its fraud, breach of trust or willful
misconduct.

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	(q)	 	[Reserved].
	 
	(r)	 	Definitions.

	 	(i)	 	As used herein:

“Credit Support Annex” means the 1994 ISDA Credit Support Annex between Party A and Party
B dated as of the date hereof.

“Depositor” means BAS Securitization LLC.

“Eligible Collateral” means cash, U.S. Treasury Bills and any other forms of collateral
which are reasonably acceptable to Party B, the Servicer and the Indenture Trustee and
have been approved by the Rating Agencies.

“Free Writing Prospectus” means any free writing prospectus prepared in connection with
the public offering of the Notes.

“Moody’s” means Moody’s Investors Service, Inc. or its successor.

“Notes” mean the asset-backed notes issued by Party B under the Indenture.

“Preliminary Prospectus Supplement” means any preliminary prospectus supplement prepared
in connection with the public offering and sale of the Notes.

“Prospectus Supplement” means any prospectus supplement prepared in connection with the
public offering and sale of the Notes.

“Qualified Counterparty” means a counterparty that (a) has Rated Debt and (b) becomes a
party to this Agreement (or party to an agreement in form and substance satisfactory to
Party B, the Servicer and the Indenture Trustee) in accordance with Part 5(e) of this
Schedule and pursuant to documentation which is not less favorable to Party B than this
Agreement.

“Rated Debt” means, with respect to a counterparty,(1) in the case of S&P, (i) S&P assigns
(x) a long-term debt rating equal to or higher than “A” to the counterparty, and (y)
assigns a short-term debt rating equal to or higher than “A-1” to the counterparty (if the
counterparty has both long-term and short-term debt ratings), or (ii) S&P assigns a
long-term debt rating equal to or higher than “A+” to the counterparty (if the
counterparty only has a long-term debt rating), and (2) in the case of Moody’s (i)

Schedule to ISDA
Master Agreement

21

 

Moody’s assigns (x) a long-term debt rating equal to or higher than “A2” to the
counterparty, and (y) a short-term debt rating equal to or higher than “P1” to the
counterparty (if the counterparty has both long-term and short-term debt ratings), or (ii)
Moody’s assigns a long-term debt rating equal to or higher than “A1” to the counterparty
(if the counterparty only has a long-term debt rating).

“Rating Agencies” means S&P and Moody’s.

“Rating Agency Condition” means, with respect to any event or circumstance and each Rating
Agency, either (a) written confirmation by such Rating Agency that the occurrence of such
event or circumstance will not cause it to downgrade, qualify or withdraw its rating
assigned to any of the Notes or (b) in the case of Moody’s only, that such Rating Agency
shall have been given notice of such event or circumstance at least ten days prior to the
occurrence of such event or circumstance (or, if ten days’ advance notice is
impracticable, as much advance notice as is practicable) and such Rating Agency shall not
have issued any written notice that the occurrence of such event or circumstance will
cause it to downgrade, qualify or withdraw its rating assigned to the Notes.

“S&P” means Standard & Poor’s Rating Services, a division of the McGraw-Hill Companies
Inc. or its successor.

“Servicer” means Bank of America, National Association or its successor.

     Reference is made to that certain Sale and Servicing Agreement dated as of [ ], 20[ ]
(the “Sale and Servicing Agreement”) among Party B as the Issuer, BAS Securitization LLC, Bank of
America, National Association and [ ], as Indenture Trustee. Capitalized terms used but not
defined in this Agreement or this Schedule will have the meanings ascribed to them in the Sale and
Servicing Agreement.

	(s)	 	Amendments. Section 9(a) of this Agreement is hereby amended by inserting the following at
the end thereof:

it being a further condition to any such amendment or modification that the Rating Agency
Condition shall have been satisfied.

Schedule to ISDA
Master Agreement

22

 

	(t)	 	Regulation AB Financial Disclosure.

Subject to the last two paragraphs of this clause (t), so long as Party B, the Depositor or
any of such parties’ Affiliates (collectively, “Bank of America”) shall file reports in
respect of the Notes with the Secutiries and Exchange Commission (the “SEC”) pursuant to
Sections 13(a) or 15(d) of the the Securities Exchange Act of 1934, as amended (the
“Exchange Act”), Party A agrees to Deliver within ten (10) calendar days of receipt of a
written request therefor by Party B or the Depositor, such information relating to Party A
as may be necessary to enable Bank of America to comply with any SEC disclosure
requirements, including without limitation information concerning Party A required by Items
1115 of Regulation AB and Forms 8-K, 10-D and 10-K; it being understood that Bank of America
shall not be required to voluntarily suspend its reporting obligation with respect to the
Notes at any time. To the extent necessary to comply with Regulation AB, Party A shall
obtain any necessary auditor’s consents related to any financial statements of Party A
required to be incorporated by reference into any Free Writing Prospectus, Preliminary
Prospectus Supplement or Prospectus Supplement or report filed by Bank of America with the
SEC and promptly to forward to the Depositor any such auditor consents obtained. The
information provided, or authorized to be incorporated by reference, by Party A pursuant to
this Part 5(t) is referred to as the “Additional Information.”

For the purpose of this Part 5(t):

“Deliver” includes actual delivery or transmission of information in an EDGAR-compatible
format or, in the case of any financial information required to be delivered pursuant to
Item 1115 of Regulation AB and Forms 8-K, 10-D and 10-K, making such financial information
available in an EDGAR-compatible format for incorporation by reference to the extent
permitted by Regulation AB, together with actual delivery of all necessary auditor’s
consents.

“EDGAR” means the SEC’s Electronic Data Gathering, Analysis and Retrieval system.

“Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1100-229.1123, as such may be amended from time to time, and subject to such
clarification and interpretation as have been provided by the SEC in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed.

Schedule to ISDA
Master Agreement

23

 

Reg. 1,506, 1,531 (Jan. 7, 2005)) or by the staff of the SEC, or as may be provided by the
SEC or its staff from time to time.

If at any time during a period that reports are being filed with respect to Party B and the
Notes in accordance with the Exchange Act and the rules and regulations of the SEC, as
reasonably calculated by the Depositor, the “significance percentage” of this Agreement for
any class of the Notes is 8% or more, Party A shall within five (5) Local Business Days
following receipt of request therefor demonstrate to the satisfaction of the the Depositor
that it is able to provide the Additional Information required under Item 1115(b)(1) of
Regulation AB for Party A. If Party A is unable to satisfy the Depositor as to its ability
to provide such information, Party A shall within eight (8) Local Business Days following
receipt of request therefor, at the sole expense of Party A, without any expense or
liability to the Depositor or Party B, cause a Qualified Counterparty (which satisfies the
Rating Agency Condition and any other requirements of this Agreement, including the
requirement to deliver the indemnification and contribution agreement referred to in Part
3(b)) to replace Party A as party to this Agreement that has agreed to Deliver any
information, report, certification or accountants’ consent when and as required under this
Part 5(t) hereof.

If at any time during a period that reports are being filed with respect to Party B and the
Notes in accordance with the Exchange Act and the rules and regulations of the SEC, as
reasonably calculated by the Depositor, the “significance percentage” of this Agreement for
any class of the Notes is 18% or more, Party A shall within five (5) Local Business Days
following receipt of request therefor demonstrate to the satisfaction of the Depositor that
it is able to provide the Additional Information required under Item 1115(b)(2) of
Regulation AB for Party A. If Party A is unable to satisfy the Depositor as to its ability
to provide such information, Party A shall within eight (8) Local Business Days following
receipt of request therefor, at the sole expense of Party A, without any expense or
liability to the Depositor or Party B, cause a Qualified Counterparty (which satisfies the
Rating Agency Condition and any other requirements of this Agreement, including the
requirement to deliver the indemnification and contribution agreement referred to in Part
3(b)) to replace Party A as party to this Agreement that has agreed to Deliver any
information, report, certification or accountants’ consent when and as required under this
Part 5(t) hereof.

	(u)	 	S&P Downgrade of Party A.

Schedule to ISDA
Master Agreement

24

 

In the event (i) S&P assigns (x) a long-term debt rating equal to or lower than “A” to Party
A without (y) assigning a short-term debt rating of at least “A-1” to Party A, (ii) S&P
assigns a long-term debt rating lower than “A+” to Party A (if Party A only has a long-term
debt rating) or (iii) S&P ceases to assign such ratings to Party A (each such event, a
“Party A Rating Downgrade”), Party A shall (A) promptly, but in no event later than two (2)
Local Business Days following the date of such Party A Rating Downgrade, give Party B, the
Servicer and the Indenture Trustee written notice of the occurrence of such Party A Rating
Downgrade, and (B) use commercially reasonable efforts to find a Qualified Counterparty
promptly and transfer, in accordance with and subject to the limitations of Part 5(e), its
rights and obligations to Qualified Counterparty. Party A shall continue to perform its
obligations and use commercially reasonable efforts to find a Qualified Counterparty until a
Qualified Counterparty is in place. The cost of finding and putting into place a Qualified
Counterparty shall be borne by Party A. Not later than thirty (30) calendar days after such
Party A Rating Downgrade, if Party A has not transferred its obligations to a Qualified
Counterparty in accordance with the foregoing provisions, Party A shall either (i) obtain
(at Party A’s expense) an unconditional guarantee or other similar assurance in respect of
Party A’s obligations under this Agreement from a guarantor that has Rated Debt and which
guarantee and guarantor satisfy the Rating Agency Condition; or (ii) transfer within thirty
(30) days of such downgrade and from time to time thereafter to Party B under the Credit
Support Annex the amount of Eligible Collateral required under the Credit Support Annex. In
the event Party A complies with the requirements set forth in the preceding sentence and the
Party A Rating Downgrade relates only to an action taken by S&P, Party A shall not be
required to find a replacement counterparty until the time at which S&P assigns a long-term
senior unsecured debt rating lower than BBB+ to Party A (a “Level Two S&P Party A
Downgrade”), at which time Party A must (i) transfer within one Local Business Day of such
downgrade and from time to time thereafter to Party B under the Credit Support Annex the
amount of Eligible Collateral required under the Credit Support Annex and (ii) immediately
(but in no event later than thirty (30) calendar days of such downgrade) find and put into
place a Qualified Counterparty. Once a Qualified Counterparty is in place, Party B shall
return any such Eligible Collateral to Party A pursuant to the terms of the Credit Support
Annex and to the extent such Eligible Collateral has not already been applied in accordance
with this Agreement or the Credit Support Annex. Party B shall have the right to terminate
this Agreement if at any time Party A fails to comply with any of its obligations under this
paragraph in full and in a timely manner.

Schedule to ISDA
Master Agreement

25

 

	 	 	 	 	 	 	 
	 	 	BANC OF AMERICA AUTO SECURITIES TRUST 200[  ] — [  ]
	 
	 	 	By: [            ], not in its individual
capacity but solely as owner trustee
	 
	 

	 	By:  	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:	 	 	 
	 

	 	 	Title:	 	 	 
	 
	 	 	[            ]
	 
	 

	 	By:  	 	 	 	 
	 

	 	 	 	 	 
	 

	 	 	Name:	 	 	 
	 

	 	 	Title:	 	 	 

Schedule to ISDA
Master Agreement

26

 

ISDA®

International Swaps and Derivatives Association, Inc.

CREDIT SUPPORT ANNEX

to the Schedule to the

ISDA MASTER AGREEMENT

dated as of [      ]

between

[        ] (“Party A”)

and

Banc of America Auto Securities Trust 200[ ]-[ ] (“Party B”)

This Annex supplements, forms part of, and is subject to, the ISDA Master Agreement referred to
above (this “Agreement”), is part of its Schedule and is a Credit Support Document under this
Agreement with respect to Party A.

Accordingly, the parties agree as follows:

Paragraphs 1 — 12. Incorporation

Paragraphs 1 through 12 inclusive of the ISDA Credit Support Annex (Bilateral Form)
(ISDA Agreements Subject to New York Law Only) published in 1994 by the
International Swaps and Derivatives Association, Inc. are incorporated herein by
reference and made a part hereof:

Paragraph 13. Elections and Variables

	(a)	 	Security Interest for “Obligations”. The term “Obligations” as used in this Annex includes
no additional obligations of Secured Party and, for purposes of the definition of Obligations
in Paragraph 12, includes no additional obligations of Pledgor.
	 
	(b)	 	Credit Support Obligations.

	 	(i)	 	“Delivery Amount” will have the meanings specified in Paragraph 3(a) except that
the words “upon a demand made by the Secured Party on or promptly following a Valuation
Date” shall be deleted and replaced by the words “on each Valuation Date”.
	 
	 	(ii)	 	“Credit Support Amount” (x) means the Credit Support Amount required under
Paragraph 13(n) (in the case of a Party A Rating Downgrade or Level Two S&P

1

 

	 	 	 	Party A Downgrade relating to an action taken by S&P); (y) has the meaning specified under the
relevant definition of Ratings Criteria (in the case of Moody’s First Trigger Event or
Moody’s Second Trigger Event); or (z) means Party B’s Exposure under the Agreement to
which this Annex relates (in the case of a Party A Rating Downgrade relating to an action
taken by Fitch), in each case as calculated on a daily basis by the Valuation Agent. The
Credit Support Amount shall be calculated by reference to the provisions set forth in
this Annex which would result in Party A transferring the greatest amount of Eligible
Credit Support to Party B or, if applicable, which would result in Party B returning the
least amount of Posted Credit Support. In circumstances where more than one of the
Ratings Criteria or Party A Rating Downgrade apply, the Credit Support Amount shall be
calculated by reference to the Ratings Criteria or Party A Rating Downgrade or Level Two
S&P Party A Downgrade which would result in Party A transferring the greatest amount of
Eligible Credit Support or, if applicable, which would result in Party B returning the
least amount of Posted Credit Support.
	 
	 	(iii)	 	Eligible Collateral. The following items will qualify as “Eligible Collateral”:

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	(A)

	 	Cash: US Dollars
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 	 	 	 	 
	(B)

	 	U.S. Treasury
Securities:
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%
	 

	 	negotiable debt
obligations issued
by the U.S.
Treasury Department (“Treasuries”)
having a remaining
maturity of up to
and not more than 1
year.	 	 	 	 	 	 	 	 

2

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	 
	 	 	 	 	 	 	 	 	 	 
	(C)

	 	Treasuries having a
remaining maturity
of greater than 1
year but not more
than 10 years.
	 	 	 	[      ]%
	 	[      ]% (1-2yr)

[      ]% (2-3yr)

[      ]% (3-5yr)

[      ]% (5-7yr)

[      ]% (7-10yr)
	 	[      ]% (1-2yr)

[      ]% (2-3yr)

[      ]% (3-5yr)

[      ]% (5-7yr)

[      ]% (7-10yr)
	 
	 	 	 	 	 	 	 	 	 	 
	(D)

	 	Treasuries having a
remaining maturity
of greater than 10
years.
	 	 	 	[      ]%
	 	[      ]% (10-20yr)

[      ]% (>20yr)
	 	[      ]% (10-20yr)

[      ]% (>20yr)
	 
	 	 	 	 	 	 	 	 	 	 
	(E)

	 	Agency Securities:
Debenture
obligations of the
Federal National
Mortgage
Association (FNMA),
Federal Home Loan
Mortgage
Corporation (FHLMC)
(collectively,
“Agency Securities”) having
a remaining
maturity of not
more than 1 year.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%

3

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	 
	 	 	 	 	 	 	 	 	 	 
	(F)

	 	Agency Securities
having a remaining
maturity of greater
than 1 year but not
more than 5 years.
	 	 	 	[      ]%
	 	[      ]% (1-2yr)

[      ]% (2-3yr)

[      ]% (3-5yr)
	 	[      ]% (1-2yr)

[      ]% (2-3yr)

[      ]% (3-5yr)
	 
	 	 	 	 	 	 	 	 	 	 
	(G)

	 	Agency Securities
having a remaining
maturity of greater
than 5 years but
not more than 10
years.
	 	 	 	[      ]%
	 	[      ]% (5-10yr)

[      ]% (7-10yr)
	 	[      ]% (5-7yr)

[      ]% (7-10yr)
	 
	 	 	 	 	 	 	 	 	 	 
	(H)

	 	Agency Securities
having a remaining
maturity of greater
than 10 years but
not more than 20
years.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%

4

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	 
	 	 	 	 	 	 	 	 	 	 
	(I)

	 	Agency Securities
having a remaining
maturity of greater
than 20 years but
not more than 30
years.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 	 	 	 	 
	(J)

	 	FHLMC Certificates.
Mortgage
participation
certificates issued
by FHLMC evidencing
undivided interests
or participations
in pools of first
lien conventional
or FHA/VA
residential
mortgages or deeds
of trust,
guaranteed by
FHLMC, and having a
remaining maturity
of not more than 30
years.
	 	 	 	% to be determined
	 	% to be determined
	 	[      ]%

5

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	(K)

	 	FNMA Certificates.
Mortgage-backed
pass-through
certificates issued
by FNMA evidencing
undivided interests
in pools of first
lien mortgages or
deeds of trust on
residential
properties,
guaranteed by FNMA,
having a remaining
maturity of not
more than 30 years.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 	 	 	 	 
	(L)

	 	GNMA Certificates.
Mortgage-backed
pass-through
certificates issued
by private
entities,
evidencing
undivided interests
in pools of first
lien mortgages or
deeds of trust on single family
residences,
guaranteed by the
Government National
Mortgage
Association (GNMA)
with the full faith
and credit of the
United States, and
having a remaining
maturity of not
more than 30 years.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%

6

 

	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	Moody’s First	 	Moody’s Second	 	 
	 	 	 	 	Percentage:*	 	Ratings Trigger	 	Ratings Trigger**	 	S&P & Fitch**
	(M)

	 	Commercial Paper.
Commercial Paper
with a rating of at
least P-1 by
Moody’s, at least
F-1 by Fitch and at
least A-1+ by S&P
and having a
remaining maturity
of not more than 30
days.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 	 	 	 	 
	(N)

	 	Other. Other items
of Credit Support
approved in writing
by each applicable
rating agency with
such valuation percentages as
determined by each
applicable rating
agency.
	 	 	 	[      ]%
	 	[      ]%
	 	[      ]%

 

			
	*	 	The Valuation Percentage shall equal the percentage specified under such Rating Agency’s name
above. If Party A is rated by more than one Rating Agency specified above, the Valuation
Percentage shall equal the lowest of the applicable percentages specified above.
	 
	**	 	A parenthetical in the form of (a-b yr) means a security having a remaining maturity greater
than or equal to a years and less than b years.

7

 

	 	(iv)	 	There shall be no “Other Eligible Support” for Party A for purposes of this Annex.
	 
	 	(v)	 	Thresholds.

	 	(A)	 	“Independent Amount” means with respect to Party A: Not
Applicable.
	 
	 	 	 	“Independent Amount” means with respect to Party B: Not Applicable.
	 
	 	(B)	 	“Threshold” means with respect to Party A: Infinity; provided
that for so long as Party A is not above the Moody’s First Trigger Required
Ratings and either (i) Party A had been below the Moody’s First Trigger
Required Ratings since this Annex was executed or (ii) at least 30 Local
Business Days have elapsed since the last time Party A had been below the
Moody’s First Trigger Required Ratings, the Threshold with respect to Party A
shall be zero; further, provided, if a Moody’s Second Rating Trigger
Requirement has occurred and is continuing pursuant to the Agreement, the
Threshold shall be zero in the event Party A fails to assign all of its rights
and obligations under the Agreement on or before the 20th day after the date of
a Moody’s Second Rating Trigger Requirement (as described in Part 1(g) of the
Schedule) continues to

8

 

	 	 	 	exist. Party A will post Eligible Collateral on or prior to
the 20th day following a Moody’s Second Rating Trigger Requirement.
	 
	 	 	 	“Threshold” means with respect to Party B: Not Applicable.
	 
	 	(C)	 	“Minimum Transfer Amount” means with respect to Party A: (i)
$[     ] when the Notional Amount is greater than $50 million, or (ii)
otherwise, $[     ].
	 
	 	 	 	“Minimum Transfer Amount” means with respect to Party B: (i) $[     ]
when the Notional Amount is greater than $50 million, or (ii) otherwise, $[    
].
	 
	 	(D)	 	Rounding. The Delivery Amount will be rounded up and the
Return Amount will be rounded down to the nearest integral multiple of
$10,000.00, respectively.

	(c)	 	Valuation and Timing.

	 	(i)	 	“Valuation Agent” means Party A; provided, however, that if an Event of Default
shall have occurred with respect to which Party A is the Defaulting Party, Party B
shall have the right to designate as Valuation Agent an independent party, reasonably
acceptable to Party A, the cost for which shall be borne by Party A. All calculations
by the Valuation Agent must be made in accordance with standard market practice,
including, in the event of a dispute as to the Value of any Eligible Credit Support or
Posted Credit Support, by making reference to quotations received by the Valuaton Agent
from one or more pricing sources.
	 
	 	(ii)	 	“Valuation Date” means: each Local Business Day on which the Credit Support
Amount would be greater than zero.
	 
	 	(iii)	 	“Valuation Time” means:

	 	[ ] 	 	the close of business in the city of the Valuation Agent
on the Valuation Date or date of calculation, as applicable;
	 
	 	[ ]	 	 the close of business on the Local Business Day before the
Valuation Date or date of calculation, as applicable;

9

 

	 	 	 	provided that the calculations of Value and Exposure will be made as of approximately the
same time on the same date.
	 
	 	(iv)	 	“Notification Time” means 1:00 p.m., New York time, on a Local Business Day.
	 
	 	(v)	 	Notwithstanding the definition of Valuation Agent and Valuation Date, at any time while
the long-term unsecured debt or counterparty rating of Party A’s Credit Support Provider is
not above “BBB”, the calculations of Exposure and the Value of any Eligible Credit Support
or Posted Credit Support must be verified by an external mark monthly. The external mark
must be obtained by an independent third party, and cannot be verified by the same entity
more than four times in any 12-month period. In addition, the external mark-to-market
valuations should reflect the higher of two bids from counterparties that would be eligible
and willing to provide the swap in the absence of the current provider. The Value of any
Eligible Credit Support or Posted Credit Support and Exposure should be based on the greater
of the calculations of the Valuation Agent and the external marks, and any deficiencies in
Value and Exposure must be cured within three days.
	 
	 	(vi)	 	Notice to S&P. At any time at which Party A (or, to the extent applicable, its Credit
Support Provider) does not have a long-term unsubordinated and unsecured debt rating of at
least “BBB+” from S&P, the Valuation Agent shall provide to S&P not later than the
Notification Time on the Local Business Day following each Valuation Date its calculations
of the Secured Party’s Exposure and the S&P Value of any Eligible Credit Support or Posted
Credit Support for that Valuation Date. The Valuation Agent shall also provide to S&P any
external marks received pursuant to the preceding paragraph.

	(d)	 	Conditions Precedent. No event shall constitute a “Specified Condition”.
	 
	(e)	 	Substitution.

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

10

 

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

	(f)	 	Dispute Resolution.

	 	(i)	 	“Resolution Time” means 1:00 p.m., New York time, on the Local Business Day
following the date on which a notice is given that gives rise to a dispute under
Paragraph 5.
	 
	 	(ii)	 	Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of Posted Credit
Support will be calculated as follows: for Cash, the U.S. dollar value thereof, and for
each item of Eligible Collateral (except for Cash), an amount in U.S. dollars equal to
the product of (i) either (A) the bid price for such security quoted on such day by a
principal market-maker for such security selected in good faith by the Secured Party or
(B) the most recent publicly available bid price for such security as reported by a
quotation service or in a medium selected in good faith and in a commercially reasonable
manner by Secured Party, multiplied by (ii) the percentage figure listed in Paragraph
13(b)(ii) hereof with respect to such security.
	 
	 	(iii)	 	Alternative. The provisions of Paragraph 5 will apply.

	(g)	 	Holding and Using Posted Collateral.

	 	(i)	 	Eligibility to Hold Posted Collateral; Custodians. Secured Party will not be
entitled to hold Posted Collateral itself, and instead the Secured Party will be entitled
to hold Posted Collateral through the Indenture Trustee which Posted Collateral (i) shall
not be commingled or used with any other asset held by the Indenture Trustee but shall be
held in a separate account for this purpose only and (ii) shall not be transferred to any
other person or entity but Party A pursuant to the provisions herein except (x) in any
case contemplated by Paragraph 8(a) of this Annex with respect to Party A or (y) as
directed by Party A; provided, however, that if the Indenture Trustee does not have a
short-term debt rating of at least “A-1” by S&P, then a third party custodian with a
short-term debt rating of at least “A-1” by S&P must hold such Posted Collateral.
	 
	 	(ii)	 	Use of Posted Collateral. The provisions of Paragraph 6(c) will not apply to
Secured Party and without prejudice to Secured Party’s rights under Paragraph 8

11

 

	 	 	 	of the Credit Support Annex, Secured Party will not take any action specified in
such Section 6(c).

	(h)	 	Distributions and Interest Amount.

	 	(i)	 	The “Interest Rate”, with respect to Eligible Collateral in the form of Cash,
for any day, will be the lesser of (x) the rate opposite the caption “Federal funds
(effective)” for such day as published by the Federal Reserve Publication H.15 (519) or
any successor publication as published by the Board of Governors of the Federal Reserve
System and (y) the rate of interest actually received on such Cash.
	 
	 	(ii)	 	The “Transfer of Interest Amount” will be made within 3 Local Business Days
after the last Local Business Day of each calendar month.
	 
	 	(iii)	 	Alternative Interest Amount. The provisions of Paragraph 6(d)(ii) will apply.

	(i)	 	Additional Representations. None.
	 
	(j)	 	Other Eligible Support and Other Posted Support. Not Applicable.
	 
	(k)	 	Demands and Notices. All demands, specifications and notices made by a party to this Annex
will be made to the following:

	 	 	Party A: As set forth in the Schedule.
	 
	 	 	Party B: As set forth in the Schedule.

	(l)	 	Addresses for Transfers.

	 	 	Party A: Cash/Interest Payments: (USD Only)
	 
	 	 	              USD Cash Collateral Instructions:

12

 

	 	 	Eligible Collateral (other than cash):
	 
	 	 	Party B: Contact Indenture Trustee in the event Transfers are required.

	(m)	 	Other Provisions.

	 	(i)	 	This Credit Support Annex is a Security Agreement under the New York UCC.
	 
	 	(ii)	 	Paragraph 1(b) of this Annex is amended by deleting it and restating it in full as
follows:

“(b) Secured Party and Pledgor. All references in this Annex to the “Secured
Party” mean Party B, and all references in this Annex to the “Pledgor” mean Party A;
provided, however, that if Other Posted Support is held by Party B, all references
herein to the Secured Party with respect to that Other Posted Support will be to
Party B as the beneficiary thereof and will not subject that support or Party B as
the beneficiary thereof to provisions of law generally relating to security
interests and secured parties.”

	 	(iii)	 	Paragraph 2 of this Annex is amended by deleting the first sentence thereof
and restating that sentence in full as follows:
	 
	 	 	 	“Party A, as the Pledgor, hereby pledges to Party B, as the Secured Party, as
security for the Pledgor’s Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against all
Posted Collateral Transferred to or received by the Secured Party hereunder.”
	 
	 	(iv)	 	Only Party A makes the representations contained in Paragraph 9 of this Annex.
	 
	 	(v)	 	Paragraph 12 of this Annex is amended by deleting the definitions of “Pledgor”
and “Secured Party” and replacing them with the following:
	 
	 	 	 	“‘Secured Party’ means Party B.

13

 

	 	 	 	‘Pledgor’ means Party A.”
	 
	 	(vi)	 	Paragraph 12 is hereby amended by adding, in alphabetical order, the following:
	 
	 	 	 	“Moody’s” means Moody’s Investor Services, Inc., or any successor to the rating
business of such entity.”
	 
	 	 	 	“S&P” means Standard and Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor to the rating business of such entity.”

	(n)	 	S&P Credit Support Amount. With respect to a Party A Rating Downgrade or Level Two S&P Party
A Downgrade relating to an action taken by S&P, the “Credit Support Amount” shall mean with
respect to a Pledgor on a Valuation Date the sum of:

	 	(i)	 	the greater of MTM and $0, plus
	 
	 	(ii)	 	VB
	 
	 	 	 	where:
	 
	 	 	 	“MTM” means Secured Party’s Exposure;
	 
	 	 	 	“VB” means the Notional Amount (as defined in the Confirmation for each outstanding
Transaction under this Agreement) times the relevant percentage set out in Table A below:

14

 

TABLE A

Volatility Buffer

	 	 	 	 	 	 	 
	 	 	 	 	Less than 10 years,	 	 
	 	 	 	 	but more than 5	 	Greater than 10
	 	 	Less than 5 years	 	years to	 	years to
	 	 	to Termination Date	 	Termination Date of	 	Termination Date of
	Counterparty	 	of the Transaction.	 	the Transaction.	 	the Transaction.
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is at
least equal to “A”

	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is
equal to “A-”

	 	[      ]%
	 	[      ]%
	 	[      ]%
	 
	 	 	 	 	 	 
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is
equal to or less
than “BB+”

	 	[      ]%
	 	[      ]%
	 	[      ]%

	(o)	 	Moody’s Ratings Criteria.

15

 

	 	“Ratings Criteria” means, the criteria used by Moody’s (“Moody’s Criteria”) for the purposes
of determining the amount of Eligible Credit Support Party A is required to transfer at any
time when the Threshold with respect to Party A is zero.
	 
	 	Moody’s Criteria
	 
	 	Moody’s Credit Support Amount.* With respect to a Moody’s First Trigger Event or a Moody’s
Second Trigger Event relating to an action taken by Moody’s, the “Credit Support Amount”
shall mean with respect to a Pledgor on a Valuation Date the sum of:
	 
	 	(i)	 	With respect to a Moody’s First Trigger Event:

	 	(A)	 	the greater of the Secured Party’s Exposure and $0, plus
	 
	 	(B)	 	Notional Amount times the relevant percentage set out in Table B below.

	 	(ii)	 	With respect to a Moody’s Second Trigger Event:

	 	(A)	 	the greater of the Secured Party’s Exposure, $0 or the amount
owed by Party A on the next Payment Date (as such term is defined in the
Confirmation for each outstanding Transaction under this Agreement), plus
	 
	 	(B)	 	Notional Amount times the relevant percentage set out in Table B below.

 

			
	*	 	To the extent that both the Moody’s Credit Support Amount and the S&P Credit Support Amount
apply, the greater of the two amounts shall be the Credit Support Amount.

TABLE B

	 	 	 	 	 
	Weighted Average Life	 	Moody’s First Trigger	 	Moody’s Second
	of Hedge in Years	 	Event has Occurred	 	Trigger Event has Occurred
	1
	 	%	 	%
	2
	 	%	 	%
	3
	 	%	 	%
	4
	 	%	 	%

16

 

	 	 	 	 	 
	Weighted Average Life	 	Moody’s First Trigger	 	Moody’s Second
	of Hedge in Years	 	Event has Occurred	 	Trigger Event has Occurred
	5
	 	%	 	%
	6
	 	%	 	%
	7
	 	%	 	%
	8
	 	%	 	%
	9
	 	%	 	%
	10
	 	%	 	%
	11
	 	%	 	%
	12
	 	%	 	%
	13
	 	%	 	%
	14
	 	%	 	%
	15
	 	%	 	%
	16
	 	%	 	%
	17
	 	%	 	%
	18
	 	%	 	%
	19
	 	%	 	%
	20
	 	%	 	%
	21
	 	%	 	%
	22
	 	%	 	%
	23
	 	%	 	%

17

 

	 	 	 	 	 
	Weighted Average Life	 	Moody’s First Trigger	 	Moody’s Second
	of Hedge in Years	 	Event has Occurred	 	Trigger Event has Occurred
	24
	 	%	 	%
	25
	 	%	 	%
	26
	 	%	 	%
	27
	 	%	 	%
	28
	 	%	 	%
	29
	 	%	 	%
	30
	 	%	 	%

18

 

Accepted and agreed:

	 	 	 	 	 	 	 
	[            ]	 	BANC OF AMERICA AUTO SECURITIES TRUST 200[ ]-[ ]
	 
	 	 	 	 	 	 
	 	 	 	 	 	 	 
	By:
	 	 	 	By: [             ], not in its individual capacity but

solely in its capacity as Owner Trustee
	 
	 	Name:
	 	 	 	 
	 

	 	Title:	 	By:	 	 
	 

	 	Date:
	 	 	 	Name:
	 

	 		 	 	 	Title:
	 

	 	 	 	 	 	Date:

 Credit Support Annex

 

 

SWAP TRANSACTION CONFIRMATION

	 	 	 
	Date:

	 	[                      ], 20[      ]
	 
	 	 
	To:

	 	[Banc of America Auto Securities Trust 200[ ]-[ ]] (“Party B”)
	 

	 	c/o [                    ], as Owner Trustee
	 

	 	[                    ]
	 

	 	[                    ]
	 

	 	Attention: [                              ]
	 

	 	Telephone: [                              ]
	 

	 	Facsimile: [                              ]
	 
	 	 
	From:

	 	[                         ] (“Party A”)
	 

	 	[                         ]
	 

	 	[                         ]
	 

	 	Attention: [                              ]
	 

	 	Telephone: [                              ]
	 

	 	Facsimile: [                              ]
	 
	 	 
	Ref. No.

	 	[                         ]

Dear Sir or Madam:

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

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

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

	 	 	 	 	 
	Transaction Type:

	 	Interest Rate Swap
	 
	 	 
	Currency for Payments:

	 	U.S. Dollars

 

 

	 	 	 	 	 
	Notional Amount:

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

	 	[                         ], 20[      ] to
but excluding [                         ], 20[      ].
	 
	 	 
	Term:
	 	 
	Trade Date:

	 	[                         ], 20[      ]
	 
	Effective Date:

	 	[                         ], 20[      ]
	 
	Termination Date:

	 	The earlier of (i) [insert legal final maturity of the Class [ ]
Notes] and (ii) the date on which the Note Balance of the Class [ ]
Notes is reduced to zero.
	 
	 	 
	Fixed Amounts:
	 	 
	Fixed Rate Payer:

	 	Party B
	 
	Calculation Period End Dates:

	 	Monthly on the [ ] of each month, commencing
[                         ], 20[ ], through and including the Termination Date.
	 
	Payment Dates:

	 	Monthly on the [ ] of each month, commencing
[                         ], 20[
], through and including the Termination Date.
	 
	 	 
	Business Day Convention:

	 	Following
	 
	Business Day:

	 	Principal place of business of Party A, New York, Delaware and North
Carolina
	 
	Fixed Rate:

	 	[                         ]
	 
	Fixed Rate Day Count

	
Basis:

	 	30/360

2

 

	 	 	 	 	 
	Floating Amounts:
	 	 
	Floating Rate Payer:

	 	Party A
	 
	Calculation Period End Dates:

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

	 	Monthly on the [ ] of each month, commencing
[                         ], 20[
], through and including the Termination Date.
	 
	Business Day Convention:

	 	Following
	 
	Business Day:

	 	Principal place of business of Party A, New York, Delaware and North
Carolina
	 
	For Payment Dates:
	 	 
	 
	For Reset Dates:
	 	 
	 
	For the determination of the
Floating Rate:   

	 	London
	 
	Floating Rate Option:

	 	USD-LIBOR-BBA
	 
	Designated Maturity:

	 	1 Month
	 
	Spread:

	 	None
	 
	Floating Rate Day Count:
	 	 
	 
	Basis:

	 	Actual/360
	 
	Reset Dates:

	 	The first day of each Calculation Period
	 
	Compounding:

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

	 	As specified in the Agreement
	 
	 	 
	Payments to Party A:
	 	 
	 
	 	 
	Payments to Party B:
	 	 
	 

	 	Deposits to the Collection Account shall be made via
fed wire in accordance with the instructions below:

3

 

4. Documentation

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

4

 

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

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

	 	 	 	 	 
	Very truly yours,

[                                
                  ]
 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 
	 

Accepted and confirmed as of the date first above written:

BANC OF AMERICA AUTO SECURITIES TRUST 200[ ]-[ ]

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

in its capacity as Owner Trustee

	 	 	 	 	 
	 	 
	By:  	 	 
	 	Name:  	 	 
	 	Title:  	 	 

5

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