Common use of Consumer Subvention Programs Clause in Contracts

Consumer Subvention Programs. (i) Formula to be used as the pricing model to determine the appropriate Support Rate on a pre-tax basis. (A) In calculating the Support Rate, SCUSA will provide transparency to its pricing model which will reflect [***] The Support Rate will then be compared at regular intervals, for an agreed range of Credit Tiers, to a [***] An illustrative calculation of the Support Rate [***] is attached hereto as Schedule 4.08(a). (B) The components of both the Support Rate and the Market Benchmark will be reviewed, and found to be mutually satisfactory, by the Steering Committee. *** Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. [***] indicates that text has been omitted and is the subject of a confidential treatment request. MASTER PRIVATE LABEL FINANCING AGREEMENT (C) “The Operating Spread” will be a fixed spread consisting of [***] determined as provided in Schedule 4.08(c) to this Agreement. (1) The Operating Spread will be established to be in line with [***] (2) The Operating Spread will be provided by SCUSA with full disclosure of its cost of origination/servicing, credit loss, credit enhancement, dealer participation, and targeted return by asset class. (3) The Operating Spread must be [***] (4) Credit loss assumptions for the Operating Spread will vary by categories of credit risk and term of the consumer contract and will be determined based primarily on actual historical loss experience for consumer new, consumer used, lease and balloon contracts. Credit loss assumptions will be reviewed quarterly. (D) Operating Expense levels will be reviewed no less frequently than [***] Any change in SCUSA’s operating expense assumptions will be discussed with Chrysler prior to implementation. (ii) SCUSA agrees that the Support Rate at each Credit Tier will: (A) [***] (B) [***] (C) [***] (iii) SCUSA will make available to Chrysler on a [***] basis, or more frequently as rates change, the standard retail rates it offers to the market, reported on a regional basis, broken down by Credit Tier, loan size and other relevant metrics. SCUSA will demonstrate its compliance with subsection (a)(ii) and this subsection (a)(iii) through quarterly reporting to the Steering Committee by presenting comparisons to both the average standard rates offered to Consumers and in the overall marketplace. Chrysler will have audit rights with respect to such reporting. (iv) For any Subvention Program, Chrysler may, in its discretion, exclude certain Credit Tiers or terms from the subvented financing offer. (v) Any change to the credit scoring system used by SCUSA relating to the Financing Services will be communicated to Chrysler promptly, but, in any case, such a change shall not affect the agreed pricing mechanism. *** Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. [***] indicates that text has been omitted and is the subject of a confidential treatment request. MASTER PRIVATE LABEL FINANCING AGREEMENT

Consumer Subvention Programs. (i) Formula to be used as the pricing model to determine the appropriate Support Rate on a pre-tax basis. (A) In calculating the Support Rate, SCUSA will provide transparency to its pricing model which will reflect [***] ]. The Support Rate will then be compared at regular intervals, for an agreed range of Credit Tiers, to a [***] ]. An illustrative calculation of the Support Rate [***] is attached hereto as Schedule 4.08(a). (B) The components of both the Support Rate and the Market Benchmark will be reviewed, and found to be mutually satisfactory, by the Steering Committee. *** Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. [***] indicates that text has been omitted and is the subject of a confidential treatment request. MASTER PRIVATE LABEL FINANCING AGREEMENT. (C) “The Operating Spread” will be a fixed spread consisting of [***] determined as provided in Schedule 4.08(c) to this Agreement. (1) The Operating Spread will be established to be in line with [***]. (2) The Operating Spread will be provided by SCUSA with full disclosure of its cost of origination/servicing, credit loss, credit enhancement, dealer participation, and targeted return by asset class. (3) The Operating Spread must be [***]. (4) Credit loss assumptions for the Operating Spread will vary by categories of credit risk and term of the consumer contract and will be determined based primarily on actual historical loss experience for consumer new, consumer used, lease and balloon contracts. Credit loss assumptions will be reviewed quarterly. (D) Operating Expense levels will be reviewed no less frequently than [***] ]. Any change in SCUSA’s operating expense assumptions will be discussed with Chrysler prior to implementation. (ii) SCUSA agrees that the Support Rate at each Credit Tier will: (A) [***] (B) [***] (C) [***] (iii) SCUSA will make available to Chrysler on a [***] basis, or more frequently as rates change, the standard retail rates it offers to the market, reported on a regional basis, broken down by Credit Tier, loan size and other relevant metrics. SCUSA will demonstrate its compliance with subsection (a)(ii) and this subsection (a)(iii) through quarterly reporting to the Steering Committee by presenting comparisons to both the average standard rates offered to Consumers and in the overall marketplace. Chrysler will have audit rights with respect to such reporting. (iv) For any Subvention Program, Chrysler may, in its discretion, exclude certain Credit Tiers or terms from the subvented financing offer. (v) Any change to the credit scoring system used by SCUSA relating to the Financing Services will be communicated to Chrysler promptly, but, in any case, such a change shall not affect the agreed pricing mechanism. *** Certain information in this agreement has been omitted and filed separately with the Securities and Exchange Commission. [***] indicates that text has been omitted and is the subject of a confidential treatment request. MASTER PRIVATE LABEL FINANCING AGREEMENT.