Document:

exv10w4

 

Exhibit 10.4

Execution Copy

SERIES 2004-D-F SUPPLEMENT

TO SPREAD ACCOUNT AGREEMENT

Dated as of October 26, 2004

     This Series 2004-D-F Supplement (this “Supplement”), dated as of October
26, 2004, is by and among FINANCIAL SECURITY ASSURANCE INC. (“Financial
Security”), AFS FUNDING TRUST (“Funding Trust”), JPMORGAN CHASE BANK, in its
capacities as Trustee and Trust Collateral Agent under the Indenture referred
to below (in such capacity, the “Trustee”) and as Collateral Agent under the
Spread Account Agreement dated as of December 1, 1994, as amended and restated
as of May 11, 1998, as further amended and restated as of September 10, 2003,
among the parties thereto (the “Master Agreement”), as the same may be further
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with the terms thereof. Capitalized terms used in this
Supplement and not otherwise specifically defined have the meaning given such
terms in the Master Agreement.

WITNESSETH:

     WHEREAS, the parties hereto have executed the Master Agreement, which
contemplates and provides for the execution and delivery of individual Series
Supplements with respect to Series of notes or certificates issued pursuant to
an Indenture or a Pooling and Servicing Agreement, for the purpose of
identifying, describing, and pledging Collateral related to a particular Series
of notes or certificates;

     WHEREAS, AmeriCredit Automobile Receivables Trust 2004-D-F (the “Series
2004-D-F Trust”) has been formed pursuant to a Trust Agreement dated as of
October 5, 2004, as amended and restated as of October 26, 2004, between AFS
Funding Trust and Wilmington Trust Company, as Owner Trustee (the “Series
2004-D-F Trust Agreement”);

     WHEREAS, pursuant to a Sale and Servicing Agreement dated as of October
26, 2004 among AmeriCredit Financial Services, Inc., as Servicer, Systems &
Services Technologies, Inc., as Backup Servicer, Funding Trust, as Seller and
JPMorgan Chase Bank, as Trust Collateral Agent (the “2004-D-F Sale and
Servicing Agreement”), Funding Trust is selling to the Series 2004-D-F Trust
all of its right, title and interest in and to certain receivables and certain
other trust property; and

     WHEREAS, the Series 2004-D-F Trust is issuing the Series 2004-D-F Notes
(as defined herein) pursuant to an Indenture dated as of October 26, 2004
between the Series 2004-D-F Trust and JPMorgan Chase Bank, as Trustee and Trust
Collateral Agent (the “2004-D-F Indenture”);

     WHEREAS, the Series 2004-D-F Trust has agreed to pay the Series 2004-D-F
Credit Enhancement Fee to Funding Trust in consideration of the obligations of
Funding Trust pursuant hereto (such obligations forming part of the Series
2004-D-F Insurer Secured Obligations). The Series 2004-D-F Insurer Secured
Obligations form part of the

 

 

consideration to Financial Security for its issuance of the Series
2004-D-F Policy (as defined herein).

     NOW, THEREFORE, it is hereby agreed by and among the parties hereto as
follows:

ARTICLE I

AGREEMENT

     Section 1.01. Definitions. Each term used but not defined herein shall
have the meaning assigned to such term in the Master Agreement, the AmeriCredit
2004-D-F Letter Agreement (as defined below) or in the Series 2004-D-F Sale and
Servicing Agreement (as defined below).

     “Accelerated Payment Termination Date” means the earlier of the
Distribution Date (as such term is defined in the Series 2004-D-F Sale and
Servicing Agreement) on which (A) the principal balance of the Series 2004-D-F
Class A-1 Notes is reduced to zero or (B) the Accelerated Payment Amount
Shortfall (as such term is defined in the Series 2004-D-F Sale and Servicing
Agreement) equals zero.

     “AmeriCredit 2004-D-F Letter Agreement” means that certain letter
agreement dated as of November 9, 2004 among Financial Security, Funding Trust,
AmeriCredit Automobile Receivables Trust 2004-D-F, AmeriCredit Corp.,
AmeriCredit Financial Services, Inc. and the Trustee, as the same may be
amended, supplemented or otherwise modified in accordance with the terms
thereof.

     “April–October Determination Date” shall mean, with respect to Series
2004-D-F, a Determination Date occurring during the months of April, May, June,
July, August, September or October.

     “Cumulative Default Rate” shall mean, with respect to Series 2004-D-F and
with respect to any Determination Date, the fraction, expressed as a
percentage, the numerator of which is equal to the Principal Balance of all
Receivables which became Defaulted Receivables since the Initial Cutoff Date as
of the related Accounting Date and the denominator of which is equal to the
Original Pool Balance.

     “Cumulative Default Test Failure” shall mean, with respect to Series
2004-D-F, the Cumulative Default Rate shall be equal to or greater than: (A)
3.53%, with respect to any Determination Date occurring prior to or during the
3rd calendar month succeeding the Series 2004-D-F Closing Date, (B) 5.82%, with
respect to any Determination Date occurring after the 3rd, and prior to or
during the 6th, calendar month succeeding the Series 2004-D-F Closing Date, (C)
8.24%, with respect to any Determination Date occurring after the 6th, and
prior to or during the 9th, calendar month succeeding the Series 2004-D-F
Closing Date, (D) 10.00%, with respect to any Determination Date occurring
after the 9th, and prior to or during the 12th, calendar month succeeding the
Series 2004-D-F Closing Date, (E) 12.00%, with respect to any Determination
Date occurring after the 12th, and prior to or during the 15th, calendar month
succeeding the

2

 

Series 2004-D-F Closing Date, (F) 14.50%, with respect to any
Determination Date occurring after the 15th, and prior to or during the 18th,
calendar month succeeding the Series 2004-D-F Closing Date, (G) 17.00%, with
respect to any Determination Date occurring after the 18th, and prior to or
during the 21st, calendar month succeeding the Series 2004-D-F Closing Date,
(H) 18.50%, with respect to any Determination Date occurring after the 21st,
and prior to or during the 24th, calendar month succeeding the Series 2004-D-F
Closing Date, (I) 20.50%, with respect to any Determination Date occurring
after the 24th, and prior to or during the 27th, calendar month succeeding the
Series 2004-D-F Closing Date, (J) 22.00%, with respect to any Determination
Date occurring after the 27th, and prior to or during the 30th, calendar month
succeeding the Series 2004-D-F Closing Date, (K) 23.75%, with respect to any
Determination Date occurring after the 30th, and prior to or during the 33rd,
calendar month succeeding the Series 2004-D-F Closing Date, (L) 25.00%, with
respect to any Determination Date occurring after the 33rd, and prior to or
during the 36th, calendar month succeeding the Series 2004-D-F Closing Date,
(M) 26.25%, with respect to any Determination Date occurring after the 36th,
and prior to or during the 39th, calendar month succeeding the Series 2004-D-F
Closing Date, (N) 27.00%, with respect to any Determination Date occurring
after the 39th, and prior to or during the 42nd, calendar month succeeding the
Series 2004-D-F Closing Date and (O) 27.75%, with respect to any Determination
Date occurring after the 42nd calendar month succeeding the Series 2004-D-F
Closing Date.

     “Cumulative Net Loss Rate” shall mean, with respect to Series 2004-D-F and
with respect to any Determination Date, the fraction, expressed as a
percentage, the numerator of which is equal to the sum of (a) Net Losses for
such Determination Date plus (b) 50% of the Principal Balance of all
Receivables with respect to which 10% or more of a Scheduled Payment has become
91 or more days delinquent (not including Receivables included under the
definition of Net Losses in clause (a) above) as of the related Accounting Date
and the denominator of which is equal to the Aggregate Principal Balance as of
the Cutoff Date.

     “Cumulative Net Loss Test Failure” shall mean, with respect to Series
2004-D-F, the Cumulative Net Loss Rate shall be equal to or greater than: (A)
2.13%, with respect to any Determination Date occurring prior to or during the
3rd calendar month succeeding the Series 2004-D-F Closing Date, (B) 3.44%, with
respect to any Determination Date occurring after the 3rd, and prior to or
during the 6th, calendar month succeeding the Series 2004-D-F Closing Date, (C)
4.80% with respect to any Determination Date occurring after the 6th, and prior
to or during the 9th, calendar month succeeding the Series 2004-D-F Closing
Date, (D) 6.17%, with respect to any Determination Date occurring after the
9th, and prior to or during the 12th, calendar month succeeding the Series
2004-D-F Closing Date, (E) 8.00%, with respect to any Determination Date
occurring after the 12th, and prior to or during the 15th, calendar month
succeeding the Series 2004-D-F Closing Date, (F) 9.25%, with respect to any
Determination Date occurring after the 15th, and prior to or during the 18th,
calendar month succeeding the Series 2004-D-F Closing Date, (G) 11.00%, with
respect to any Determination Date occurring after the 18th, and prior to or
during the 21st, calendar month succeeding the Series 2004-D-F Closing Date,
(H) 12.00%, with respect to any Determination Date occurring after the 21st,
and prior to or during the 24th, calendar

3

 

month succeeding the Series 2004-D-F Closing Date, (I) 12.75%, with
respect to any Determination Date occurring after the 24th, and prior to or
during the 27th, calendar month succeeding the Series 2004-D-F Closing Date,
(J) 13.75%, with respect to any Determination Date occurring after the 27th,
and prior to or during the 30th, calendar month succeeding the Series 2004-D-F
Closing Date, (K) 14.75%, with respect to any Determination Date occurring
after the 30th, and prior to or during the 33rd, calendar month succeeding the
Series 2004-D-F Closing Date, (L) 15.25%, with respect to any Determination
Date occurring after the 33rd, and prior to or during the 36th, calendar month
succeeding the Series 2004-D-F Closing Date and (M) 15.75%, with respect to any
Determination Date occurring after the 36th calendar month succeeding the
Series 2004-D-F Closing Date.

     “Delinquency Test Failure” shall mean, (A) with respect to Series 2004-D-F
and with respect to any April-October Determination Date, the arithmetic
average of the Delinquency Ratio for such Determination Date and the two
immediately preceding Determination Dates is equal to or greater than 4.0%;
provided, however, in the event that the OC Percentage is equal to or greater
than the Target OC Percentage on any Determination Date occurring subsequent to
the twelfth Determination Date after the Series 2004-D-F Closing Date, the
percentage referred to in the previous clause for such April-October
Determination Date and each Determination Date thereafter shall be deemed to be
5.0%; provided, further, in the event that the OC Percentage is equal to or
greater than the Target OC Percentage on any Determination Date occurring
subsequent to the twenty-fourth Determination Date after the Series 2004-D-F
Closing Date, the percentage referred to in the previous clause for such
April-October Determination Date and each Determination Date thereafter shall
be deemed to be 5.50%; provided, further, in the event that the OC Percentage
is equal to or greater than the Target OC Percentage on any Determination Date
occurring subsequent to the thirtieth Determination Date after the Series
2004-D-F Closing Date, the percentage referred to in the previous clause for
such April-October Determination Date and each Determination Date thereafter
shall be deemed to be 6.0%; and provided, further, in the event that the OC
Percentage is equal to or greater than the Target OC Percentage on any
Determination Date occurring subsequent to the thirty-sixth Determination Date
after the Series 2004-D-F Closing Date, the percentage referred to in the
previous clause for such April-October Determination Date and each
Determination Date thereafter shall be deemed to be 6.75%; or (B) with respect
to Series 2004-D-F and with respect to any November-March Determination Date,
the arithmetic average of the Delinquency Ratio for such Determination Date and
the two immediately preceding Determination Dates is equal to or greater than
4.25%; provided, however, in the event that the OC Percentage is equal to or
greater than the Target OC Percentage on any Determination Date occurring
subsequent to the twelfth Determination Date after the Series 2004-D-F Closing
Date, the percentage referred to in the previous clause for such November-March
Determination Date and each Determination Date thereafter shall be deemed to be
5.25%; provided, further, in the event that the OC Percentage is equal to or
greater than the Target OC Percentage on any Determination Date occurring
subsequent to the twenty-fourth Determination Date after the Series 2004-D-F
Closing Date, the percentage referred to in the previous clause for such
November-March Determination Date and each Determination Date thereafter shall
be deemed to be 5.75%; provided, further, in the event that the OC Percentage
is equal to

4

 

or greater than the Target OC Percentage on any Determination Date
occurring subsequent to the thirtieth Determination Date after the Series
2004-D-F Closing Date, the percentage referred to in the previous clause for
such November-March Determination Date and each Determination Date thereafter
shall be deemed to be 6.25%; and provided, further, in the event that the OC
Percentage is equal to or greater than the Target OC Percentage on any
Determination Date occurring subsequent to the thirty-sixth Determination Date
after the Series 2004-D-F Closing Date, the percentage referred to in the
previous clause for such November-March Determination Date and each
Determination Date thereafter shall be deemed to be 7.00%.

     “Floor Amount” shall mean, with respect to Series 2004-D-F and with
respect to any Determination Date, the greater of (A) $100,000 and (B) the
lesser of (i) the Note Balance and (ii) 2.0% of the Original Pool Balance.

     “Note Balance” shall mean, with respect to any Determination Date, the sum
of the aggregate principal balance of the Notes with respect to such
Determination Date after giving effect to all distributions on the Notes on the
related Distribution Date.

     “November–March Determination Date” shall mean, with respect to Series
2004-D-F, a Determination Date occurring during the months of November,
December, January, February or March.

     “OC Level” shall mean 15%; provided, however, if each of the “Step-Down
Conditions” set forth in the AmeriCredit 2004-D-F Letter Agreement are
satisfied on a Determination Date preceding the Distribution Date set forth in
the following table, the OC Level shall be reduced to the amount set forth with
respect to such Distribution Date in the following table; provided, further,
however, that if any of such “Step Down Conditions” are not satisfied with
respect to any Distribution Date in the following table, the OC Level shall not
be reduced on such Distribution Date and will not be subject to reduction or
further reduction, as applicable, until the next Distribution Date set forth in
the following table (if any):

	 	 	 	 	 
	Distribution Date occurring in:
	 	OC Level

	24th calendar month
	 	 	14	%
	30th calendar month
	 	 	13	%
	36th calendar month
	 	 	12	%

     “OC Percentage” shall mean, with respect to Series 2004-D-F and with
respect to any Determination Date, the sum of (i) the percentage equivalent of
a fraction the numerator of which is equal to the excess, if any, of (A) the
Aggregate Principal Balance as of such Determination Date over (B) the Note
Balance as of such Determination Date and the denominator of which is equal to
the Aggregate Principal Balance as of such Determination Date, and (ii) the
percentage equivalent of a fraction the numerator of which is equal to the
amount on deposit in the Series 2004-D-F Spread Account as of such
Determination Date (after giving effect to any withdrawals from the Series
2004-D-

5

 

F Spread Account to be made on the related Distribution Date) and the
denominator of which is equal to the Aggregate Principal Balance as of such
Determination Date.

     “Requisite Amount” shall mean, as of any Determination Date, (A) if no
Trigger Event and no Insurance Agreement Event of Default shall exist as of
such Determination Date, the sum of (a) the Floor Amount with respect to such
Determination Date and (b) the Spread Account Shortfall, if any, with respect
to such Determination Date; (B) if a Trigger Event shall exist as of such
Determination Date and no Insurance Agreement Event of Default shall have
occurred as of such Determination Date, the sum of (i) 10% of the Aggregate
Principal Balance with respect to such Determination Date and (ii) the Spread
Account Shortfall, if any, with respect to such Determination Date; or (C) if
an Insurance Agreement Event of Default shall have occurred as of such
Determination Date, an unlimited amount.

     “Series 2004-D-F Credit Enhancement Fee” means the amount distributable on
each Distribution Date pursuant to Sections 5.7(a)(vi) and (viii) of the Series
2004-D-F Sale and Servicing Agreement.

     “Series 2004-D-F Insurance Agreement” means the Insurance and Indemnity
Agreement dated as of October 26, 2004, among Financial Security, the Series
2004-D-F Trust, AmeriCredit Financial Services, Inc., AmeriCredit Corp. and
Funding Trust.

     “Series 2004-D-F Insurer Secured Obligations” means all amounts and
obligations which may at any time be owed to or on behalf of Financial Security
(or any agents, accountants or attorneys for Financial Security) under the
Series 2004-D-F Insurance Agreement or under any Transaction Document (as
defined in the Series 2004-D-F Insurance Agreement), regardless of whether such
amounts are owed now or related to such Series in the future, whether
liquidated or unliquidated, contingent or non-contingent.

     “Series 2004-D-F Notes” means the $145,000,000 Class A-1 2.08% Asset
Backed Notes, $236,000,000 Class A-2 2.53% Asset Backed Notes, $197,000,000
Class A-3 2.98% Asset Backed Notes and $172,000,000 Class A-4 3.43% Asset
Backed Notes, issued pursuant to the Series 2004-D-F Indenture.

     “Series 2004-D-F Policy” means the financial guaranty insurance policies
issued by Financial Security with respect to each of the Series 2004-D-F Notes
pursuant to the Series 2004-D-F Insurance Agreement.

     “Series 2004-D-F Sale and Servicing Agreement” means the Sale and
Servicing Agreement, dated as of October 26, 2004, among AmeriCredit Automobile
Receivable Trust 2004-D-F, as Issuer, AFS Funding Trust, as Seller, AmeriCredit
Financial Services, Inc., as Servicer, Systems & Services Technologies, Inc. as
Backup Servicer, and JPMorgan Chase Bank, a New York banking association, as
Trust Collateral Agent.

     “Target OC Percentage” shall mean, with respect to Series 2004-D-F and
with respect to any Determination Date, the sum of (i) the percentage
equivalent of a fraction the numerator of which is equal to the Floor Amount as
of such Determination Date and

6

 

the denominator of which is equal to the Aggregate Principal Balance as of
such Determination Date, and (ii) the percentage equivalent of a fraction the
numerator of which is equal to the excess, if any, of (A) the Aggregate
Principal Balance as of such Determination Date over (B) the Required Pro Forma
Note Balance as of such Determination Date and the denominator of which is
equal to the Aggregate Principal Balance as of such Determination Date.

     “Trigger Event” shall mean, with respect to Series 2004-D-F and as of a
Determination Date, the occurrence of any of the following:

     (i) the occurrence of a Cumulative Net Loss Test Failure;

     (ii) the occurrence of a Delinquency Test Failure; or

     (iii) the occurrence of a Cumulative Default Test Failure.

     Section 1.02. Series 2004-D-F Credit Enhancement Fee. The Series 2004-D-F
Sale and Servicing Agreement provides for the payment to Funding Trust of the
Series 2004-D-F Credit Enhancement Fee, to be paid to Funding Trust by
distribution of such amounts to the Collateral Agent for deposit and
distribution pursuant to this Agreement. Funding Trust hereby agrees that
payment of the Series 2004-D-F Credit Enhancement Fee in the manner and subject
to the conditions set forth herein and in the Series 2004-D-F Sale and
Servicing Agreement is adequate consideration and the exclusive consideration
to be received by Funding Trust for the obligations of Funding Trust pursuant
hereto (including, without limitation, the transfer by Funding Trust to the
Collateral Agent of the Series 2004-D-F Spread Account Initial Deposit) and
pursuant to the Series 2004-D-F Insurance Agreement. Funding Trust hereby
agrees with the Trustee and with Financial Security that payment of the Series
2004-D-F Credit Enhancement Fee to Funding Trust is expressly conditioned on
subordination of the Series 2004-D-F Credit Enhancement Fee to payments on the
Notes and the Certificates of any Series, payments of amounts due to Financial
Security and the other obligations of the Trusts, in each case to the extent
provided in the section governing distributions in the related Sale and
Servicing Agreement or Pooling and Servicing Agreement, as applicable, and
Section 3.03 of the Master Agreement, and the Security Interest of the Secured
Parties in the Series 2004-D-F Collateral is intended to effect and enforce
such subordination and to provide security for the Series 2004-D-F Secured
Obligations and subject to the terms hereof the Secured Obligations with
respect to other Series.

     Section 1.03. Grant of Security Interests by Funding Trust.

     (a) In order to secure the performance of the Secured Obligations related
to Series 2004-D-F, and the Secured Obligations related to other Series to the
extent provided in the Master Agreement, Funding Trust hereby pledges, assigns,
grants, transfers and conveys to JPMorgan Chase Bank, as Collateral Agent, on
behalf of and for the benefit of the Secured Parties to secure such Secured
Obligations, a Lien on and security interest in (which Lien and security
interest is intended to be prior to all other Liens), all of its right, title
and interest in and to the following (all being collectively

7

 

referred to herein as the “Series 2004-D-F Collateral” and constituting
Collateral under the Master Agreement):

     (i) the Series 2004-D-F Credit Enhancement Fee and all rights and
remedies that Funding Trust may have to enforce payment of the Series
2004-D-F Credit Enhancement Fee whether under the Series 2004-D-F Sale
and Servicing Agreement or otherwise;

     (ii) the Series 2004-D-F Spread Account (the “Series 2004-D-F Spread
Account”) as established pursuant to Section 3.01 of the Master Agreement
(including, without limitation, the Series 2004-D-F Spread Account
Initial Deposit (as defined below) and all additional monies, checks,
securities, investments and other items or documents at any time held in
or evidencing any such accounts);

     (iii) all of Funding Trust’s right, title and interest in and to
investments made with proceeds of the property described in clauses (i)
and (ii) above, including investments made with amounts on deposit in the
Series 2004-D-F Spread Account;

     (iv) to the extent recourse is provided under the Master Agreement
to Collateral related to other Series (as such Collateral is described in
the applicable Series Supplement(s) related thereto), such Collateral;
and

     (v) all distributions, revenues, products, substitutions, benefits,
profits and proceeds, in whatever form, of any of the foregoing.

     (b) In order to effectuate the provisions and purposes of this Supplement,
including for the purpose of perfecting the security interests granted
hereunder, Funding Trust represents and warrants that it has, prior to the
execution of this Supplement, executed and filed an appropriate Uniform
Commercial Code financing statement in Delaware sufficient to assure that the
Collateral Agent, as agent for the Secured Parties, has a first priority
perfected security interest in all Series 2004-D-F Collateral which can be
perfected by the filing of a financing statement or has delivered to Financial
Security a legal opinion acceptable to Financial Security to the effect that no
filings are required to perfect the security interests granted hereunder.

     Section 1.04. The parties hereto acknowledge and agree that the Spread
Account Deposit comprising part of the Series 2004-D-F Collateral shall be in
the amount of $16,216,231.53 (the “Series 2004-D-F Spread Account Initial
Deposit”). Funding Trust and the Collateral Agent confirm that concurrently
with the execution and delivery of this Supplement such amount has been
deposited by Funding Trust with the Collateral Agent for deposit into the
Series 2004-D-F Spread Account.

     Section 1.05. JPMorgan Chase Bank, hereby undertakes and agrees to act as
“securities intermediary” (as such term is defined in Section 8-102 (a)(14) of
the Uniform Commercial Code as in effect in the State of New York (the “New
York UCC”)). In such capacity (JPMorgan Chase Bank, in such capacity being
herein sometimes referred to as

8

 

the “Securities Intermediary”) and in accordance with Section 3.01 of the
Master Agreement, the Securities Intermediary has established account number
10220426.3 in the name of JPMorgan Chase Bank, as Trustee and Collateral Agent
which account is the account referred to herein as the “Series 2004-D-F Spread
Account.” The Security Intermediary represents, warrants, acknowledges and
agrees that:

     (a) It shall not change the name or account number of the Series 2004-D-F
Spread Account without the prior written consent of the Collateral Agent;

     (b) All securities or other property underlying any financial assets
deposited in or credited to the Series 2004-D-F Spread Account shall be
registered in the name of the Securities Intermediary or the Collateral Agent
or in blank or credited to another securities account or accounts maintained in
the name of the Securities Intermediary, and in no case shall any financial
asset deposited in or credited to the Series 2004-D-F Spread Account be
registered in the name of Funding Trust except to the extent the foregoing have
been specially indorsed to the Securities Intermediary in blank;

     (c) All property delivered to the Securities Intermediary pursuant to the
Master Agreement and this Supplement for deposit in or credit to the Series
2004-D-F Spread Account shall be promptly credited to the Series 2004-D-F
Spread Account;

     (d) The Series 2004-D-F Spread Account is a “securities account” as such
term is defined in Section 8-501(a) of the New York UCC, and the Securities
Intermediary agrees that each item of property (whether investment property,
financial asset, security, instrument or cash) deposited in or credited to the
Series 2004-D-F Spread Account shall be treated as a “financial asset” within
the meaning of Section 8-102(a)(9) of the New York UCC and that, subject to the
terms of the Master Agreement and this Supplement, the Securities Intermediary
will treat the Collateral Agent as entitled to exercise the rights that
comprise any financial asset deposited in or credited to such Account; and

     (e) If at any time the Securities Intermediary shall receive any order
from the Collateral Agent directing transfer or redemption of any financial
asset relating to the Series 2004-D-F Spread Account, the Securities
Intermediary shall comply with such entitlement order without further consent
by Funding Trust or any other person.

     Without limiting the generality of Section 2.04 this Supplement, the
parties agree that both this Supplement and the Series 2004-D-F Spread Account
shall be governed by the laws of the State of New York. Regardless of any
provision in any other agreement, for purposes of the New York UCC, New York
shall be deemed to be the Securities Intermediary’s jurisdiction and the Series
2004-D-F Spread Account (as well as all of the securities entitlements related
thereto) shall be governed by the laws of the State of New York.

9

 

ARTICLE II

MISCELLANEOUS

     Section 2.01. This Supplement may be executed in multiple counterparts,
each of which shall constitute an original and all of which when taken together
shall constitute one instrument.

     Section 2.02. The covenants, representations and agreements provided for
in the Master Agreement are hereby in all respects ratified, confirmed and
approved by the parties hereto and made applicable to this Supplement.

     Section 2.03. Further Assurances. Each party hereto shall take such
action and deliver such instruments to any other party hereto, in addition to
the actions and instruments specifically provided herein, as may be reasonably
requested or required to effectuate the purpose or provisions of this
Supplement or to confirm or perfect any transaction described or contemplated
herein.

     Section 2.04. Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH, AND THIS AGREEMENT AND ALL MATTERS ARISING OUT OF OR RELATING
IN ANY WAY TO THIS AGREEMENT SHALL BE GOVERNED BY, THE LAW OF THE STATE OF NEW
YORK.

10

 

     IN WITNESS WHEREOF, each of the parties hereto has executed this
Supplement by their respective duly authorized officers or agents, as of the
date first written above.

	 	 	 	 	 
	 	 	JPMORGAN CHASE BANK, as Trustee
	 	 	
By:
	 	    /s/ Melissa Wilman

Name: Melissa Wilman

Title: Vice President
	 	 	JPMORGAN CHASE BANK, as Collateral Agent
	 	 	
By:
	 	    /s/ Melissa Wilman

Name: Melissa Wilman

Title: Vice President
	 	 	FINANCIAL SECURITY ASSURANCE INC.
	 	 	
By:
	 	    /s/ Ravi Gandhi

Authorized Officer
	 	 	JPMORGAN CHASE BANK, as Securities Intermediary
	 	 	
By:
	 	    /s/ Melissa Wilman

Name: Melissa Wilman

Title: Vice President
	 	 	AFS FUNDING TRUST
	 	 	By: AmeriCredit Financial Services, Inc., as Administrator
	 	 	
By:
	 	    /s/ J. Michael May

Name: J. Michael May

Title: Senior Vice President

[SPREAD ACCT SUPP SIG PAGE]exv10w3

 

Exhibit 10.3

INTROGEN THERAPEUTICS, INC.

NOTICE OF STOCK OPTION GRANT AND STOCK OPTION AGREEMENT

I. NOTICE OF STOCK OPTION GRANT

     Introgen Therapeutics, Inc. grants to XXX (“Optionee”) an option to
purchase Common Stock of the Company, subject to the terms and conditions of
the Plan and this Option Agreement. Please see the Introgen Therapeutics, Inc.
2000 Stock Option Plan (the “Plan”) for the definition of capitalized terms in
this grant and Option Agreement.

     A. Terms of this Option Grant

	 	 	 	 	 
	

	 	Option Control Number
	 	XXX
	 
	 	 	 	 
	

	 	Date of Grant
	 	XXX
	 
	 	 	 	 
	

	 	Vesting Commencement Date
	 	XXX
	 
	 	 	 	 
	

	 	Term/Expiration Date
	 	XXX
	 
	 	 	 	 
	

	 	Total Number of Shares You May Purchase
	 	XXX
	 
	 	 	 	 
	

	 	Exercise Price per Share
	 	XXX
	 
	 	 	 	 
	

	 	Type of Option
	 	[Non-Statutory Stock Option] [Incentive Stock
Option, subject to the paragraph below

At least part of this Option may be classified as a Non-Statutory Stock Option
if this option grant causes the aggregate fair market value of all Optionee’s
stock options vesting in one or more of the years in which this Option vests to
exceed $100,000. The portion of this Option that is not a Non-Statutory Stock
Option may qualify for classification as an Incentive Stock Option. The
ultimate classification of stock options under the Internal Revenue Code is
dependent upon the fair market value of the stock underlying the options at the
time the options are granted, circumstances that exist at the time Optionee
exercises the stock options, and the application of relevant provisions of the
Internal Revenue Code. Optionee should consult with a tax advisor regarding
taxation of Optionee’s stock options.]

     B. Vesting Schedule

     XXX

 

 

     C. Accelerated Vesting

     Accelerated vesting occurs in the event of:

	1.	 	The merger or reorganization of the Company with or
into another corporation, entity, or person;
	 
	2.	 	The sale of all or substantially all of the
Company’s assets to another corporation, entity, or person; or
	 
	3.	 	Any change in ownership of the Company’s voting
stock resulting in ownership of more than 50% of the Company’s
voting stock by one or more persons acting in concert who did
not prior to such change in ownership own more than 50% of the
Company’s voting stock.

     When one of the foregoing events occurs, this Option shall immediately
vest 100% and be fully exercisable.

     D. Termination Period

     This Option may be exercised for three months after Optionee ceases to be
a Service Provider. Upon the death or Disability of the Optionee, this Option
may be exercised for twelve months after Optionee ceases to be a Service
Provider. In no event shall this Option be exercised later than the
Term/Expiration Date as provided above.

(The Stock Option Agreement begins on the next page.)

 

 

II. STOCK OPTION AGREEMENT

     A. Grant of Option.

          The Plan Administrator of the Company hereby grants to the Optionee named
in the Notice of Stock Option Grant in Part I of this Agreement an Option to
purchase the number of Shares, as set forth in the Notice of Stock Option
Grant, at the exercise price per share set forth in the Notice of Stock Option
Grant (the “Exercise Price”), subject to the terms and conditions of the Plan,
which is incorporated herein by reference. Subject to Section 15(c) of the
Plan, in the event of a conflict between the terms and conditions of the Plan
and the terms and conditions of this Option Agreement, the terms and conditions
of the Plan shall prevail.

          If designated in the Notice of Stock Option Grant as an Incentive Stock
Option (“ISO”), this Option is intended to qualify as an Incentive Stock Option
under Section 422 of the Code. However, if this Option is intended to be an
Incentive Stock Option, to the extent that it exceeds the $100,000 rule of Code
Section 422(d), it shall be treated as a Nonstatutory Stock Option (“NSO”).

     B. Exercise of Option.

          (a) Right to Exercise. This Option is exercisable during its term in
accordance with the Vesting Schedule set out in the Notice of Stock Option
Grant and the applicable provisions of the Plan and this Option Agreement.

          (b) Method of Exercise. This Option is exercisable by delivery of the
Company’s stock option exercise notice in effect at the time of exercise (the
“Exercise Notice”), which shall state the election to exercise the Option, the
number of Shares in respect of which the Option is being exercised (the
“Exercised Shares”), and such other representations and agreements as may be
required by the Company pursuant to the provisions of the Plan. The Exercise
Notice shall be completed by the Optionee and delivered to the Chief Financial
Officer of the Company. The Exercise Notice shall be accompanied by payment of
the aggregate Exercise Price as to all Exercised Shares. This Option shall be
deemed to be exercised upon receipt by the Company of such fully executed
Exercise Notice accompanied by such aggregate Exercise Price.

               No Shares shall be issued pursuant to the exercise of this Option unless
such issuance and exercise complies with Applicable Laws. Assuming such
compliance, for income tax purposes the Exercised Shares shall be considered
transferred to the Optionee on the date the Option is exercised with respect to
such Exercised Shares.

 

 

     C. Method of Payment.

          Payment of the aggregate Exercise Price shall be by any of the following,
or a combination thereof, at the election of the Optionee:

	1.	 	Cash;
	 
	2.	 	Check;
	 
	3.	 	Consideration received by the Company under a cashless exercise program
implemented by the Company in connection with the Plan; or
	 
	4.	 	Surrender of other Shares which (i) in the case of Shares acquired upon
exercise of an option, have been owned by the Optionee for more than six (6)
months on the date of surrender, and (ii) have a Fair Market Value on the date
of surrender equal to the aggregate Exercise Price of the Exercised Shares.

     D. Non-Transferability of Option.

          Unless otherwise specifically authorized by the Plan Administrator, this
Option may not be transferred in any manner other than by will or by the laws
of descent or distribution and may be exercised during the lifetime of Optionee
only by the Optionee. The terms of the Plan and this Option Agreement shall be
binding upon the executors, administrators, heirs, successors and assigns of
the Optionee.

     E. Term of Option.

          This Option may be exercised only within the term set out in the Notice of
Stock Option Grant, and may be exercised during such term only in accordance
with the Plan and the terms of this Option Agreement.

     F. Tax Consequences.

          Some of the federal tax consequences relating to this Option, as of the
date of this Option, are set forth below. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE
OPTIONEE SHOULD CONSULT A TAX ADVISOR BEFORE EXERCISING THIS OPTION OR
DISPOSING OF THE SHARES.

     G. Exercising the Option.

          1. Nonstatutory Stock Option. The Optionee may incur regular federal
income tax liability upon exercise of a NSO. The Optionee will be treated as
having received compensation income (taxable at ordinary income tax rates)
equal to the excess, if any, of the Fair Market Value of the Exercised Shares
on the date of exercise over their aggregate Exercise Price. If the Optionee
is an Employee or a former Employee, the Company will be required to withhold
from his or her

 

 

compensation or collect from Optionee and pay to the applicable taxing
authorities an amount in cash equal to a percentage of this compensation income
at the time of exercise, and may refuse to honor the exercise and refuse to
deliver Shares if such withholding amounts are not delivered at the time of
exercise.

          2. Incentive Stock Option. If this Option qualifies as an ISO, the
Optionee will have no regular federal income tax liability upon its exercise,
although the excess, if any, of the Fair Market Value of the Exercised Shares
on the date of exercise over their aggregate Exercise Price will be treated as
an adjustment to alternative minimum taxable income for federal tax purposes
and may subject the Optionee to alternative minimum tax in the year of
exercise. In the event that the Optionee ceases to be an Employee but remains
a Service Provider, any Incentive Stock Option of the Optionee that remains
unexercised shall cease to qualify as an Incentive Stock Option and will be
treated for tax purposes as a Nonstatutory Stock Option on the date three (3)
months and one (1) day following such change of status.

          3. Disposition of Shares.

               (a) NSO. If the Optionee holds NSO Shares for at least one year, any gain
realized on disposition of the Shares will be treated as long-term capital gain
for federal income tax purposes.

               (b) ISO. If the Optionee holds ISO Shares for at least one year after
exercise and two years after the grant date, any gain realized on disposition
of the Shares will be treated as long-term capital gain for federal income tax
purposes. If the Optionee disposes of ISO Shares within one year after
exercise or two years after the grant date, any gain realized on such
disposition will be treated as compensation income (taxable at ordinary income
rates) to the extent of the excess, if any, of the lesser of (A) the difference
between the Fair Market Value of the Shares acquired on the date of exercise
and the aggregate Exercise Price, or (B) the difference between the sale price
of such Shares and the aggregate Exercise Price. Any additional gain will be
taxed as capital gain, short-term or long-term depending on the period that the
ISO Shares were held.

               (c) Notice of Disqualifying Disposition of ISO Shares. If the Optionee
sells or otherwise disposes of any of the Shares acquired pursuant to an ISO on
or before the later of (i) two years after the grant date, or (ii) one year
after the exercise date, the Optionee shall immediately notify the Company in
writing of such disposition. The Optionee agrees that he or she may be subject
to income tax withholding by the Company on the compensation income recognized
from such early disposition of ISO Shares by payment in cash or out of the
current earnings paid to the Optionee.

     H. Entire Agreement; Governing Law.

          The Plan is incorporated herein by reference. The Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and Optionee with respect to the subject matter
hereof, and may not be modified adversely to the Optionee’s interest except by

 

 

means of a writing signed by the Company and Optionee. This agreement is
governed by the internal substantive laws, but not the choice of law rules, of
Texas.

     I. NO GUARANTEE OF CONTINUED SERVICE.

          OPTIONEE ACKNOWLEDGES AND AGREES THAT THE VESTING OF SHARES PURSUANT TO
THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE PROVIDER
AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING
GRANTED AN OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER
ACKNOWLEDGES AND AGREES THAT THIS AGREEMENT, THE TRANSACTIONS CONTEMPLATED
HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT CONSTITUTE AN
EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR
THE VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH
OPTIONEE’S RIGHT OR THE COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS
A SERVICE PROVIDER AT ANY TIME, WITH OR WITHOUT CAUSE.

     J. FLUCTUATIONS IN STOCK PRICE

          OPTIONEE ACKNOWLEDGES AND AGREES THAT THE EXERCISE PRICE OF THE OPTION
GRANTED BY THE COMPANY AND REFERRED TO HEREIN IS THE FAIR MARKET VALUE OF THE
COMPANY’S COMMON STOCK ON THE DATE THE OPTION WAS GRANTED. THE FAIR MARKET
VALUE OF THE COMPANY’S COMMON STOCK IS SUBJECT TO MANY FACTORS, INCLUDING THE
ANNOUNCEMENT OF NEW PRODUCTS OR SERVICES BY THE COMPANY OR ITS COMPETITORS,
QUARTERLY VARIATIONS IN THE COMPANY’S OR ITS COMPETITORS’ RESULTS OF
OPERATIONS, FAILURE TO ACHIEVE OPERATING RESULTS PROJECTED BY SECURITIES
ANALYSTS, CHANGES IN EARNINGS ESTIMATES OR RECOMMENDATIONS BY SECURITIES
ANALYSTS, DEVELOPMENTS IN THE COMPANY’S INDUSTRY, AND GENERAL MARKET CONDITIONS
AND OTHER FACTORS, INCLUDING FACTORS UNRELATED TO OUR OPERATING PERFORMANCE OR
THE OPERATING PERFORMANCE OF OUR COMPETITORS. THEREFORE, THE COMPANY CANNOT
GUARANTEE THAT THE OPTION WILL HAVE ANY VALUE IN THE FUTURE.

     J. INSIDER TRADING POLICY

          THE TRADING OF SHARES OF THE COMPANY’S COMMON STOCK PURCHASED UNDER THIS
OPTION MAY BE SUBJECT TO THE COMPANY’S INSIDER TRADING POLICY. IN PARTICULAR,
YOUR FUTURE TRADING IN SUCH SHARES MAY BE ALLOWED ONLY DURING SPECIFIED OPEN
TRADING WINDOWS AND RESTRICTED DURING SPECIFIED BLACK-OUT PERIODS IMPOSED IN
ACCORDANCE WITH THE INTROGEN THERAPEUTICS, INC. INSIDER TRADING POLICY. ALL
INTROGEN SERVICE PROVIDERS ARE CONSIDERED INSIDERS UNDER THIS INSIDER TRADING
POLICY. YOU SHOULD CONTACT THE

 

 

COMPANY’S INSIDER TRADING COMPLIANCE OFFICER PRIOR TO TRADING SHARES IF
YOU BELIEVE YOU ARE AN INSIDER SUBJECT TO TRADING WINDOWS AND BLACK-OUT
PERIODS.

     By your signature and the signature of the Company’s representative below,
you and the Company agree that this Option is granted under and governed by the
terms and conditions of the Plan and this Option Agreement. You and the
Company agree that this Option is not valid and enforceable until both parties
hereto have executed this Option Agreement. Optionee has reviewed the Plan and
this Option Agreement in their entirety, has had an opportunity to obtain the
advice of counsel prior to executing this Option Agreement and fully
understands all provisions of the Plan and Option Agreement. Optionee hereby
agrees to accept as binding, conclusive and final all decisions or
interpretations of the Administrator upon any questions relating to the Plan
and Option Agreement. Optionee further agrees to notify the Company upon any
change in the residence address indicated below.

	 	 	 	 	 
	OPTIONEE:	 	INTROGEN THERAPEUTICS, INC.
	 
	 	 	 	 
	

	 	By:	 	 
	Signature

	 	 	 	

Print Name

Social Security Number

Residence Street Address

Residence City, State and Zip

E-Mail address (required)

Option Control Number XXX

THE CONSENT OF SPOUSE ON THE NEXT PAGE IS AN INTEGRAL PART OF THIS DOCUMENT.

 

 

CONSENT OF SPOUSE

(Option Control Number XXX)

     The undersigned spouse of Optionee has read and hereby approves the terms
and conditions of the Plan and this Option Agreement. In consideration of the
Company’s granting his or her spouse the right to purchase Shares as set forth
in the Plan and this Option Agreement, the undersigned hereby agrees to be
irrevocably bound by the terms and conditions of the Plan and this Option
Agreement and further agrees that any community property interest shall be
similarly bound. The undersigned hereby appoints the undersigned’s spouse as
attorney-in-fact for the undersigned with respect to any amendment or exercise
of rights under the Plan or this Option Agreement.

	 	 	 
	 

	 	

	

	 	Signature of Spouse of Optionee
	 
	 	 
	 

	 	

	

	 	Printed Name of Spouse of Optionee
	 
	 	 
	 

	 	

	

	 	Social Security Number of Spouse of Optionee

CONFIRMATION OF NO SPOUSE

If there is no consent of spouse signature above, I confirm that as of the
grant date of this option, I have no spouse.

	 	 	 
	 

	 	

	

	 	Signature of Optionee
	 
	 	 
	 

	 	

	

	 	Date

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