Exhibit 10.15.2
 FLEET LEASING RECEIVABLES TRUST
 Trust
  PHH VEHICLE MANAGEMENT SERVICES INC.
 Originator
  PHH FLEET LEASE RECEIVABLES L.P.
 Seller
  MERRILL LYNCH CANADA INC. and BANC OF AMERICA SECURITIES LLC
 Agents
 AGENCY AGREEMENT
  
 Stikeman Elliott LLP
 [***]
    
    INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED.
ALL SUCH OMITTED MATERIAL HAS BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED




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AGENCY AGREEMENT
 THIS AGENCY AGREEMENT Agency Agreement BNY TRUST
COMPANY OF CANADA FLEET LEASING RECEIVABLES TRUST Trust PHH VEHICLE MANAGEMENT SERVICES INC. PHH VEHICLE MANAGEMENT SERVICES INC. Originator PHH FLEET LEASE RECEIVABLES L.P. Seller MERRILL LYNCH CANADA INC. BANC OF AMERICA SECURITIES LLC Agents
 WHEREAS Class A-1a Notes Class A-1b Notes Class A-2b Notes Class B Notes Notes
 AND WHEREAS
 AND WHEREAS
 NOW THEREFORE
 Section 1
    
    DEFINITIONS
 (1)
    
    In this Agency Agreement, unless stated elsewhere in this Agency Agreement, the following
terms have the following meanings:Agents counsel means Stikeman Elliott LLP;Applicable Securities Laws means all applicable securities laws and rules, regulations,
instruments, notices, orders and written policies in the Jurisdictions to the offering and
sale of the Notes, including but not limited to the securities legislation of the Selling
Provinces, and the rules, instruments and policies of the Securities Commissions and/or the
U.S. Securities Act, as applicable;




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Business Day means a day which is not Saturday or Sunday or a legal holiday in Toronto,
Ontario;Closing means the closing of the purchase and sale of the Notes contemplated by this
Agency Agreement;Closing Date means January 27, 2010, or such other date as the Agents and the Trust may
determine, acting reasonably;Closing Time means 10:00 a.m. (Toronto time) or such other time, on the Closing Date, as
the parties may agree;Condition in respect of a person, means the assets, liabilities (contingent or
otherwise), financial condition, properties, business, affairs, operations, results of
operations, income, cash flow or capital of such person;DBRS means DBRS Limited and its successors;Declaration of Trust means the declaration of trust of the Trust dated November 2, 2009,
as amended and restated on November 16, 2009;Directed Selling Efforts means directed selling efforts as that term is defined in
Regulation S. Without limiting the foregoing, but for greater clarity in this Agency
Agreement, it means, subject to the exclusions from the definition of directed selling
efforts contained in Regulation S, any activity undertaken for the purpose of, or that
could reasonably be expected to have the effect of, conditioning the market in the United
States for any of the Class A-1b Notes and includes the placement of any advertisement in a
publication with a general circulation in the United States that refers to the offering of
the Class A-1b Notes;distribution means distribution or distribution to the public, as the case may be, as
defined under the Applicable Securities Laws of the Jurisdictions and distribute has a
corresponding meaning;General Solicitation and General Advertising means general solicitation or general
advertising, as used in Rule 502(c) under the U.S. Securities Act, including
advertisements, articles, notices or other communications published in any newspaper,
magazine or similar media or broadcast over radio, television or the Internet, or any
seminar or meeting whose attendees had been invited by general solicitation or general
advertising;Governmental Authority means any federal, provincial, state, municipal, county or
regional governmental or quasi-governmental authority, domestic or foreign, and includes
any ministry, department, court, tribunal, arbitral body, commission, bureau, board,
administrative or other agency or regulatory body or instrumentality thereof, any
quasi-governmental body or private body exercising regulatory, expropriation or taxing
authority under or for the account, if any, of the foregoing
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and any stock exchange or self-regulatory authority and, for greater certainty, includes the Regulatory Authorities;Indenture means the Trust Indenture made as of November 16, 2009 between Computershare
Trust Company of Canada as indenture trustee, and BNY Trust Company of Canada, as issuer
trustee, as supplemented by the 2010-1 Supplemental Indenture made as of January 27, 2010
among such parties, as amended, supplemented, modified, restated or replaced from time to
time;Issuer Trustee has the meaning assigned in the Indenture;Jurisdictions means, collectively, Canada and the United States;laws means any and all applicable (i) laws, constitutions, treaties, statutes, codes,
ordinances, principles of common and civil law and equity, orders, decrees, rules,
regulations and municipal by-laws whether domestic, foreign or international, (ii)
judicial, arbitral, administrative, ministerial, departmental and regulatory judgments,
orders, writs, injunctions, decisions, and awards of any Governmental Authority, and (iii)
policies, practices and guidelines of, or contracts with, any Governmental Authority which,
although not actually having the force of law, are considered by such Governmental
Authority as requiring compliance as if having the force of law, in each case binding on or
affecting the Person referred to in the context in which the word is used;material change means a material change within the meaning of any of the Applicable
Securities Laws;material fact means a material fact within the meaning of any one or more of the
Applicable Securities Laws;misrepresentation means a misrepresentation within the meaning of the Applicable
Securities Laws;Moodys means Moodys Investors Service, Inc. and its successors;NI 45-106 means National Instrument 45-106  Prospectus and Registration Exemptions, as
amended;Offering Memorandum means the (final) offering memorandum of the Trust dated January 25,
2010, prepared for use in connection with the offer and sale of the Class A-1a, Class A-2b
Notes and Class B Notes in Canada, in the form agreed by the Trust and the Agents;Preliminary Offering Memoranda means the preliminary offering memoranda of the Trust
prepared for use in connection with the offer and sale of the Class A-1a, Class A-2b Notes
and Class B Notes in Canada, in the form agreed by the Trust and the Agents;
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Preliminary Private Placement Memoranda means the preliminary private placement memoranda
of the Trust prepared for use in connection with the offer and sale of the Class A-1b Notes
in the United States, in the form agreed by the Trust and the Agents;Private Placement Memorandum means the (final) private placement memorandum of the Trust
dated January 25, 2010, prepared for use in connection with the offer and sale of the Class
A-1b Notes in the United States, in the form agreed by the Trust and the Agents;Purchase Agreement means the purchase agreement dated as of January 27, 2010 made among
the Trust, the Seller, PHH Vehicle Services Inc. as servicer and PHH Corporation as
performance guarantor, as the same may be amended, restated, modified or supplemented from
time to time;Rating Agencies shall have the meaning assigned in the Indenture;Regulation D means Regulation D adopted by the SEC under the U.S. Securities Act;Regulation S means Regulation S adopted by the SEC under the U.S. Securities Act;Related Collateral shall have the meaning assigned in the Indenture;SEC means the U.S. Securities and Exchange Commission;Securities Commissions means the securities commissions or similar securities regulatory
authorities in the Jurisdictions;Selling Provinces means the Provinces of Alberta and Ontario;Sub-Agents means any other investment dealer and broker that the Agents may have
retained, appointed or engaged pursuant to Section 2(d);Subscriber means any entity subscribing for Class A-1a Notes, Class A-1b Notes, Class
A-2b Notes or Class B Notes that is accepted by the Trust;Subscription Agreement means, in respect of a Subscriber, the agreement between the Trust
and the Subscriber pursuant to which Class A-1a Notes, Class A-1b Notes, Class A-2b Notes
or Class B Notes, as applicable, are issued to that Subscriber;Substantial U.S. Market Interest means substantial U.S. market interest as that term is
defined in Regulation S;Transaction Documents means this Agency Agreement, the Purchase Agreement, the Indenture,
the Notes, the Preliminary Private Placement Memoranda, the Private Placement Memorandum,
the Preliminary Offering Memoranda, the Offering
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Memorandum, the Subscription Agreements
and any other document entered into from time to time by one or more of the parties hereto
in connection with the issuance and sale of the Notes, in each case, as amended,
supplemented, modified, restated or replaced from time to time;Trusts auditors means Deloitte LLP;Trusts counsel means Blake, Cassels & Graydon LLP, or such other counsel engaged by
the Trust;United States means the United States of America, its territories and possessions,
including any State and the District of Columbia;U.S. Exchange Act means the United States Securities Exchange Act of 1934, as amended,
and the rules and regulations promulgated thereunder;U.S. Investment Company Act means the United States Investment Company Act of 1940, as
amended, and the rules and regulations promulgated thereunder;U.S. Person means a U.S. Person as that term is defined in Regulation S;U.S. Securities Act means the United States Securities Act of 1933, as amended, and the
rules and regulations promulgated thereunder; andUSD means the lawful currency of the United States.
 (2)
    
    Gender and Number
  (3)
    
    Recitals
  Section 2
    
    THE OFFERING
 (a)
    
    Sale of the Notes.
 (i)
    
    Subject to the terms and conditions of this Agency Agreement,
the Trust hereby appoints the Agents, and the Agents hereby agree to act as
agents for the Trust, severally and not jointly, to offer the Notes for sale
in the relevant Jurisdictions on behalf of the Trust. The Agents will use
their best efforts to arrange for one or more Subscribers to purchase the
aggregate principal amount of the Notes in the relevant Jurisdictions.
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(ii)
    
    The Trust will create, issue and sell the Notes, as
applicable, at the Closing Time, in accordance with and subject to the
provisions of this Agency Agreement, the Indenture and all applicable laws.
It is understood and agreed by the parties that the Agents will act as agents
only and at no time will the Agents have any obligation whatsoever to
purchase, in whole or in part, the Notes.(iii)
    
    The Agents will not offer the Notes in any jurisdiction
other than the Jurisdictions, and for greater certainty, the Agents will offer
the Notes only to such Subscribers and in such manner, that pursuant to
Applicable Securities Laws, no prospectus or registration statement need be
delivered or filed in connection therewith, nor will the Trust be required to
register in any jurisdiction.(iv)
    
    The sale of the Class A-1a Notes, Class A-2b Notes and Class
B Notes to Subscribers in Canada will be effected in a manner exempt from the
prospectus requirements of the Applicable Securities Laws in the Selling
Provinces on the basis of the exemption available under Sections 2.3 of NI
45-106.(v)
    
    The sale of the Class A-1b Notes to Subscribers in the United
States will be effected pursuant to Section 4(2) of the U.S. Securities Act
and only to subscribers who are Permitted Accredited Investors (as defined
below).
 (b)
    
    Offering Procedures.
 (i)
    
    Subscribers will purchase the Notes under exemptions from
applicable prospectus and registration requirements under the laws of the
jurisdiction of residence of the Subscriber.(ii)
    
    The Trust will file or cause to be filed all documents
required to be filed by the Trust in connection with the purchase and sale of
the Notes so that the distribution of the Notes may lawfully occur without the
necessity of filing a prospectus in Canada.
 (c)
    
    Compensation. The Seller agrees to pay the Agents an aggregate cash
commission of [***] per $1,000 principal amount of Notes sold, representing [***] of
the aggregate principal amount of Notes (other than the Class B Notes) sold
(collectively, the Agency Fee), payable by the Seller, or the Originator on
behalf of the Seller, in cash at the Closing (provided that the Agency Fee will be
recalculated and/or amounts reimbursed to the Seller if
 
 [***]
    
    INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR
WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS
BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. - 6 -




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the Seller or an affiliate
of the Seller purchases any of the Notes (either at Closing or during the statutory
withdrawal period) such that the aggregate amount of agency fees which shall be
payable in respect of all Series 2010-1 Notes sold to persons other than the Seller
or an affiliate of the Seller (the Fee Earning Notes) shall equal the amount
equal to the sum of (1) [***] of the first [***] of the aggregate principal amount
of the Fee Earning Notes and (2) [***]of the aggregate principal amount of the Fee
Earning Notes above the first [***]), in consideration for the Agents, among other
things:
 (i)
    
    acting as Agents to solicit, on a best efforts basis, offers
to purchase the Notes;(ii)
    
    advising the Trust with respect to the issuance and sale of
the Notes;(iii)
    
    acting as the registered dealer and executing the trades in
connection with the sale of Notes;(iv)
    
    assisting in the preparation of the offering materials,
including the Preliminary Private Placement Memoranda, the Private Placement
Memorandum, the Preliminary Offering Memoranda and the Offering Memorandum;
and(v)
    
    performing administrative services in connection with the
sale of Notes.
 The Agents shall be under no obligation to provide any service not specifically
enumerated herein.
 For greater certainty, the Agency Fee in respect of the Class A-1b Notes will be
denominated in Canadian dollars, based on the exchange rate specified in an ISDA
Master Agreement to be dated January 27, 2009 between the Trust and Merrill Lynch
Capital Services Inc., together with the schedule thereto and the confirmation
thereon.
 (d)
    
    Appointment of Sub-Agent. The Trust agrees that the Agents may engage,
appoint and retain such additional Sub-Agents in each of the Jurisdictions as the
Agents may deem necessary to conduct or assist in the sale of the Notes. The Agents
agree that such Sub-Agents must be acceptable to the Trust, acting reasonably, and
that such additional Sub-Agents shall agree to sell the Notes on the same terms and
conditions as the Agents. The Agents agree that they will ensure that any Sub-Agents
offer the Notes for sale only in accordance with the terms of this Agency Agreement.
The remuneration
 
 [***]
    
    INDICATES MATERIAL THAT HAS BEEN OMITTED AND FOR
WHICH CONFIDENTIAL TREATMENT HAS BEEN REQUESTED. ALL SUCH OMITTED MATERIAL HAS
BEEN FILED WITH THE SECURITIES AND EXCHANGE COMMISSION PURSUANT TO RULE 24b-2
UNDER THE SECURITIES AND EXCHANGE ACT OF 1934, AS AMENDED. - 7 -




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payable to such Sub-Agents will be paid by the Agents from the
Agents compensation under this Agency Agreement.(e)
    
    No Advertisement. The private placement of the Notes will not be advertised
in any newspaper, magazine, printed media or similar medium of general and regular
paid circulation, broadcast over radio or television or by means of the Internet
(including but not limited to the Trusts web sites, if any) and no seminar or meeting
relating to the private placement whose attendees have been invited by general
solicitation or advertising will be conducted.
 Section 3
    
    COVENANTS, REPRESENTATIONS AND WARRANTIES OF THE AGENTS
  (a)
    
    it has complied and it will comply with all Applicable Securities Laws of the
Jurisdictions in which it solicits offers to purchase Notes or procures subscriptions
from Subscribers in connection with the private placement of the Notes;(b)
    
    it will not solicit or procure subscriptions for the Notes in any
jurisdictions other than the relevant Jurisdictions or in any way which may result in
a requirement of the Trust to register or file a prospectus or similar document with
respect thereto in any jurisdiction;(c)
    
    the Agent and its representatives have not engaged in or authorized, and will
not engage in or authorize, any form of General Solicitation or General Advertising in
connection with or in respect of the Notes in any newspaper, magazine, printed media
of general and regular paid circulation or any similar medium, or broadcast over radio
or television or by means of the Internet or otherwise or conducted any seminar or
meeting concerning the offer or sale of the Notes whose attendees have been invited by
any General Solicitation or General Advertising;(d)
    
    it, or its Sub-Agent, is duly qualified as an investment dealer or
broker-dealer in each of the Jurisdictions in which it solicits or procures
subscriptions for the Notes in connection with the private placement;(e)
    
    it will only sell to or offer to sell the Class A-1a Notes, Class A-2b Notes
and Class B Notes to Subscribers in Canada who pay cash consideration of at least
$150,000, who are resident in one of the Selling Provinces, and who have acknowledged
that they are purchasing as principal or deemed principal as defined in NI 45-106
and Applicable Securities Laws and that they have not been created or used solely for
the purpose of relying on the exemption contained in Section 2.3 of NI 45-106, and
will obtain from each Subscriber a Subscription Agreement and any other applicable
forms, reports, undertakings and documentation required under the Applicable
Securities
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Laws in case in a form acceptable to the Trust and its respective counsel,
acting reasonably;(f)
    
    it will only sell to or offer to sell the Class A-1b Notes to Subscribers in
the United States who are both (i) an accredited investor, as defined in paragraphs
(1), (2), (3) or (7) of Rule 501(a) under Regulation D, that is also a qualified
institutional buyer within the meaning of Rule 144A under the U.S. Securities Act,
who are aware that the sale or transfer to it is being made in reliance on Section
4(2) of the U.S. Securities Act, and (ii) qualified purchasers within the meaning of
Section 3(c)(7) of the United States Investment Company Act (Subscribers meeting all
of these requirements referred to as Permitted Accredited Investors), and will
obtain from each Subscriber a Subscription Agreement in a form as already agreed or
such forms as may be acceptable to the Trust and its counsel, acting reasonably;(g)
    
    it will provide on a timely basis all information and documentation required
by the Trust to fulfil its obligations under the Applicable Securities Laws with such
information and documents to be in a form acceptable to the Trust and the Trusts
counsel, acting reasonably;(h)
    
    this Agency Agreement has been duly authorized, executed and delivered by it
and is a valid and binding agreement of it, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, winding-up, moratorium or
reorganization, or other similar laws affecting creditors rights generally and to the
availability of equitable remedies;(i)
    
    it acknowledges that the Notes have not been and will not be registered under
the U.S. Securities Act and may be offered and sold only in transactions exempt from
or not subject to the registration requirements of the U.S. Securities Act and state
securities laws;(j)
    
    except with respect to offers and sales of Class A-1b Notes to Permitted
Accredited Investors in reliance upon an exemption from the registration requirements
under the U.S. Securities Act, in the manner described in this Agency Agreement,
neither the Agent nor any of its affiliates, nor any person acting on its or their
behalf, has made or will make, in connection with offers and sales of the Notes
pursuant to this Agency Agreement: (A) any offer to sell, or any solicitation of an
offer to buy, any Notes to a person in the United States; or (B) any sale of Notes
unless, at the time the buy order was or will have been originated, either (i) the
purchaser is outside the United States and not a U.S. Person or (ii) the Trust, its
affiliates, and any person acting on their behalf reasonably believe that the
purchaser is outside the United States and not a U.S. Person;(k)
    
    neither the Agent or any of its affiliates, or any person acting on its or
their behalf, has made or will make any Directed Selling Efforts in the United States
with respect to the Notes, or has taken or will take any action that would cause the
exemption afforded by Section 4(2) of the U.S. Securities Act
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or Regulation S, to be
unavailable for offers and sales of the Notes pursuant to this Agency Agreement;(l)
    
    it is in compliance with the dealer registration requirements of Applicable
Securities Laws for purposes of the sale of the Notes in each of the Selling
Provinces;(m)
    
    it will not make any representation or warranty with respect to the Trust,
the Originator, the Related Collateral or the Notes other than as set forth in the
Private Placement Memorandum and Offering Memorandum; and(n)
    
    if either the Private Placement Memorandum or the Offering Memorandum is
amended, it will promptly send a copy of any such amendment to all persons who have
previously received the Private Placement Memorandum or Offering Memorandum, as
applicable, from it and will include such amendment in all further deliveries of the
Private Placement Memorandum or Offering Memorandum, as applicable.
 Section 4
    
    REPRESENTATIONS AND WARRANTIES OF THE ORIGINATOR
  (a)
    
    the Originator is a corporation amalgamated and validly existing under the
laws of Canada;(b)
    
    the Originator has all requisite corporate power and authority to enter into,
deliver and perform its obligations under this Agency Agreement, the other Transaction
Documents to which the Originator is or on the Closing Date will be a party and all
necessary action has been or will be taken on or before the Closing Date to authorize
the execution, delivery and performance of this Agency Agreement, the other
Transaction Documents to which the Originator is or on the Closing Date will be a
party, in each case, by the Originator;(c)
    
    assuming the due authorization, execution and delivery of this Agency
Agreement by the parties hereto other than the Originator, and the enforceability of
this Agency Agreement against such parties, this Agency Agreement has been duly
executed and delivered by the Originator and constitutes a legal, valid and binding
obligation of the Originator, enforceable against the Originator in accordance with
its terms, subject to applicable bankruptcy, insolvency, winding-up, moratorium or
reorganization, or other similar laws affecting creditors rights generally and to the
availability of equitable remedies;(d)
    
    the execution and delivery by the Originator of, and the performance by the
Originator of its obligations under, the Transaction Documents to which it is a party
will not result in any violation of the articles of amalgamation or by-laws of the
Originator or any material violation of any agreement or other instrument binding upon
the Originator or any of its assets or undertakings,
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will not result in any material
violation of any statute or any order, rule or regulation of any governmental body,
agency or court having jurisdiction over the Originator or of any law applicable to
the Originator or any of its assets or undertakings;(e)
    
    neither the Preliminary Private Placement Memoranda, the Private Placement
Memorandum, the Preliminary Offering Memoranda, the Offering Memorandum nor any
document incorporated by reference therein or supplementary thereto, including without
limitation any investor presentation, marketing teaser, cashflows, prepay data,
Bloomberg cashflows (if posted) or other material prepared for and disseminated to
investors, contains any misrepresentation or untrue statement or alleged
misrepresentation or alleged untrue statement, or omission or alleged omission to
state any material fact or any other fact or information required to be stated or
necessary to make any statement therein not misleading in light of the circumstances
in which it was made, excluding any statement or omission that pertains to the Agents
and/or was provided by the Agents;(f)
    
    assuming the accuracy of the representations and warranties of the Agents
contained in Section 3 and their compliance with the agreements set forth therein, it
is not necessary, in connection with the issuance and sale of the Notes to the
Subscribers in the manner contemplated by this Agreement, the Preliminary Private
Placement Memoranda, the Private Placement Memorandum, the Preliminary Offering
Memoranda and the Offering Memorandum, to register the Notes under the U.S. Securities
Act or to qualify the Indenture under the Trust Indenture Act of 1939, as amended (the
Trust Indenture Act);(g)
    
    no consent, approval, authorization or order of, or qualification with, any
governmental body or agency having jurisdiction over the Originator or the Trust is
required for the performance by the Originator or the Trust of their respective
obligations under any Transaction Document;(h)
    
    there are no legal or governmental proceedings ongoing or, to the
Originators knowledge, pending or threatened, to which the Originator, the Trust or
any of the Originators subsidiaries is a party or to which any of the property of the
Originator or the Trust is subject, which could have a material adverse effect on the
execution, delivery or performance of the Transaction Documents;(i)
    
    the Transaction Documents to which the Originator or the Trust is or on the
Closing Date will be a party, when executed and delivered by the Originator or the
Trust, as applicable, will be duly authorized by all necessary action and, assuming
the due authorization, execution and delivery of the Transaction Documents to which
the Originator or the Trust, as applicable, is or on the Closing Date will be a party
by the parties thereto other than the Originator or the Trust, as applicable, and the
enforceability of such Transaction Documents against such parties, will constitute
legal, valid and
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binding obligations of the Originator or the Trust, as applicable,
enforceable against the Originator or the Trust, as applicable, in accordance with
their terms, subject to applicable bankruptcy, insolvency, winding-up, moratorium or
reorganization, or other similar laws affecting creditors rights generally and to the
availability of equitable remedies;(j)
    
    the representations and warranties of the Originator and the Trust contained
in the Transaction Documents to which the Originator or the Trust, as applicable, is
or on the Closing Date will be a party that are made or to be made on or with effect as
of the Closing Date will be true and correct on or as of such date;(k)
    
    none of the Originator, the Trust or any of the Originators affiliates or,
assuming the representations, warranties and covenants of the Agents are true and
accurate, any person acting on its or their behalf, has made or will make any Directed
Selling Efforts in the United States with respect to the Notes, or has taken or will
take any action that would cause the exemption afforded by Section 4(2) of the U.S.
Securities Act or Regulation S, to be unavailable for offers and sales of the Notes
pursuant to this Agency Agreement;(l)
    
    none of the Originator, the Trust or any of the Originators affiliates or,
assuming the representations, warranties and covenants of the Agents are true and
accurate, any person acting on its or their behalf has engaged or will engage in any
form of General Solicitation or General Advertising or any manner involving a public
offering within the meaning of Section 4(2) of the Applicable Securities Laws, with
respect to offers or sales of the Notes in the United States;(m)
    
    none of the Originator, the Trust or any of the Originators affiliates or,
assuming the representations, warranties and covenants of the Agents are true and
accurate, any person acting on any of their behalf has taken or will take any action
in violation of Regulation M under the U.S. Exchange Act in connection with the offer
and sale of the Notes;(n)
    
    the Notes issued under the Indenture, and any Notes to be issued, are when
executed, duly executed and duly authorized by the Trust and when delivered and paid
for by a Subscriber in accordance with the terms of the Subscription Agreement and the
Indenture, will be valid and legally binding obligations of the Trust, enforceable in
accordance with their terms except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to
or affecting creditors rights generally, and to the availability of equitable
remedies;(o)
    
    the Trust is not, and as a result of the sale of the Notes contemplated
hereby will not be, registered or required to be registered as an investment company
under the U.S. Investment Company Act; and
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(p)
    
    on and immediately after the Closing Date, the Trust (after giving effect to
the issuance of the Notes and to the other transactions related thereto as described
in the Private Placement Memorandum and Offering Memorandum) will be Solvent. As used
in this paragraph, the term Solvent means, with respect to a particular date, that
on such date (A) the present fair market value (or present fair saleable value of the
assets of the Trust is not less than the total amount required to pay the probable
liabilities of the Trust on its total existing debts and liabilities (including
contingent liabilities) as they become absolute and matured, (B) the Trust is able to
realize upon its assets and pay its debts and other liabilities, contingent
obligations and commitments as they mature and become due in the normal course of
business, (C) assuming the sale of the notes as contemplated by this Agreement, the
Private Placement Memorandum and the Offering Memorandum, the Trust is not incurring
debts or liabilities beyond its ability to pay as such debts and liabilities mature,
and (D) the Trust is not engaged in any business or transaction, and is not about to
engage in any business or transaction, for which its property would constitute
unreasonably small capital after giving due consideration to the prevailing practice
in the industry in which the Trust is engaged. In computing the amount of such
contingent liabilities at any time, it is intended that such liabilities will be
computed at the amount that, in light of all the facts and circumstances existing at
such time, represents the amount that can reasonably be expected to become an actual
or matured liability.
 Section 5
    
    REPRESENTATIONS AND WARRANTIES OF THE TRUST
  (a)
    
    the Trust has been constituted as a trust under the laws of the Province of
Ontario;(b)
    
    the Trust has all requisite power and authority to enter into, deliver and
perform its obligations under this Agency Agreement, the Transaction Documents to
which the Trust is or on the Closing Date will be a party and the Notes and all
necessary action has been or will be taken on or before the Closing Date to authorize
the execution, delivery and performance of this Agency Agreement, the Transaction
Documents to which the Trust is or on the Closing Date will be a party and the Notes,
in each case, by the Trust;(c)
    
    assuming the due authorization, execution and delivery of this Agency
Agreement by the parties hereto other than the Trust, and the enforceability of this
Agency Agreement against such parties, this Agency Agreement has been duly executed
and delivered by the Trust and constitutes a legal, valid and binding obligation of
the Trust, enforceable against the Trust in accordance with its terms, subject to
applicable bankruptcy, insolvency, winding-up, moratorium or reorganization, or other
similar laws affecting creditors rights generally and to the availability of
equitable remedies;
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(d)
    
    the Notes issued under the Indenture, and any Notes to be issued, are when
executed, duly executed and duly authorized by the Trust and when delivered and paid
for by a Subscriber in accordance with the terms of the Subscription Agreement and the
Indenture, will be valid and legally binding obligations of the Trust, enforceable in
accordance with their terms except as the enforceability thereof may be limited by
bankruptcy, insolvency, reorganization, moratorium or other similar laws relating to
or affecting creditors rights generally, and to the availability of equitable
remedies;(e)
    
    the execution and delivery by the Trust of, and the performance by the Trust
of its obligations under, the Transaction Documents will not result in any violation
of the Declaration of Trust or any material violation of any agreement or other
instrument binding upon the Trust or any of its assets or undertakings, will not
result in any material violation of any statute or any order, rule or regulation of
any governmental body, agency or court having jurisdiction over the Trust or of any
law applicable to the Trust or any of its assets or undertakings;(f)
    
    neither the Preliminary Private Placement Memoranda, the Private Placement
Memorandum, the Preliminary Offering Memoranda, the Offering Memorandum nor any
document incorporated by reference therein or supplementary thereto, including without
limitation any investor presentation, marketing teaser, cashflows, prepay data,
Bloomberg cashflows (if posted) or other material prepared for and disseminated to
investors, contains any misrepresentation or untrue statement or alleged
misrepresentation or alleged untrue statement, or omission or alleged omission to
state any material fact or any other fact or information required to be stated or
necessary to make any statement therein not misleading in light of the circumstances
in which it was made, excluding any statement or omission that pertains to the Agents
and/or was provided by the Agents;(g)
    
    assuming the accuracy of the representations and warranties of the Agents
contained in Section 3 and their compliance with the agreements set forth therein, it
is not necessary, in connection with the issuance and sale of the Notes to the
Subscribers in the manner contemplated by this Agreement, the Preliminary Private
Placement Memoranda, the Private Placement Memorandum, the Preliminary Offering
Memoranda and the Offering Memorandum, to register the Notes under the U.S. Securities
Act or to qualify the Indenture under the Trust Indenture Act;(h)
    
    no consent, approval, authorization or order of, or qualification with, any
governmental body or agency having jurisdiction over the Trust is required for the
performance by the Trust of its obligations under any Transaction Document;(i)
    
    there are no legal or governmental proceedings ongoing or, to the Trusts
knowledge, pending or threatened, to which the Trust or any of its subsidiaries is a
party or to which any of the property of the Trust is subject,
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which could have a
material adverse effect on the execution, delivery or performance of the Transaction
Documents;(j)
    
    the Transaction Documents to which the Trust is or on the Closing Date will
be a party, when executed and delivered by the Trust, will be duly authorized by all
necessary action and, assuming the due authorization, execution and delivery of the
Transaction Documents to which the Trust is or on the Closing Date will be a party by
the parties thereto other than the Trust, and the enforceability of such Transaction
Documents against such parties, will constitute legal, valid and binding obligations
of the Trust, enforceable against the Trust in accordance with their terms, subject to
applicable bankruptcy, insolvency, winding-up, moratorium or reorganization, or other
similar laws affecting creditors rights generally and to the availability of
equitable remedies;(k)
    
    the Trust is a reporting issuer not in default of any requirement under the
Applicable Securities Laws;(l)
    
    there are no reports or information that in accordance with the Applicable
Securities Laws or the requirements of the Canadian Securities Regulators must be made
publicly available or filed in connection with the offering of the Notes that have not
been or will be made publicly available or filed as required;(m)
    
    the representations and warranties of the Trust contained in the Transaction
Documents to which the Trust is or on the Closing Date will be a party that are made
or to be made on or with effect as of the Closing Date will be true and correct in all
material respects on or as of such date;(n)
    
    the Trust is, and at the closing will be, a foreign issuer (as such term is
defined in Regulation S) and reasonably believes that there is no Substantial U.S.
Market Interest in the Notes;(o)
    
    the Trust is not, and as a result of the sale of the Notes contemplated
hereby will not be, registered or required to be registered as an investment company
under the U.S. Investment Company Act;(p)
    
    except with respect to offers and sales of Class A-1b Notes to Permitted
Accredited Investors in reliance upon an exemption from the registration requirements
under the U.S. Securities Act, in the manner described in this Agency Agreement,
neither the Trust nor any of its affiliates, and assuming the representations,
warranties and covenants of the Agents are true and accurate, nor any person acting on
its or their behalf, has made or will make, in connection with offers and sales of the
Notes pursuant to this Agency Agreement: (A) any offer to sell, or any solicitation of
an offer to buy, any Notes to a person in the United States; or (B) any sale of Notes
unless, at the time the buy order was or will have been originated, either (i) the
purchaser is outside the United States and not a U.S. Person or (ii) the Trust, its
 - 15 -




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affiliates, and any person acting on their behalf reasonably believe that the
purchaser is outside the United States and not a U.S. Person;(q)
    
    none of the Trust or any of its affiliates or, assuming the representations,
warranties and covenants of the Agents are true and accurate, any person acting on its
or their behalf, has made or will make any Directed Selling Efforts in the United
States with respect to the Notes, or has taken or will take any action that would
cause the exemption afforded by Section 4(2) of the U.S. Securities Act or Regulation
S, to be unavailable for offers and sales of the Notes pursuant to this Agency
Agreement;(r)
    
    none of the Trust, any of its affiliates or, assuming the representations,
warranties and covenants of the Agents are true and accurate, any person acting on its
or their behalf has engaged or will engage in any form of General Solicitation or
General Advertising or any manner involving a public offering within the meaning of
Section 4(2) of the Applicable Securities Laws, with respect to offers or sales of the
Notes in the United States;(s)
    
    the Trust has not offered or sold, and will not offer or sell, any of its
securities in a manner that would be integrated with offers and sales of the Notes in
the United States pursuant to this Agency Agreement and that would cause such sales of
such Notes to be ineligible for the exemption from registration provided by Regulation
D or Section 4(2) of the U.S. Securities Act; and(t)
    
    none of the Trust, any of its affiliates or, assuming the representations,
warranties and covenants of the Agents are true and accurate, any person acting on any
of their behalf has taken or will take any action in violation of Regulation M under
the U.S. Exchange Act in connection with the offer and sale of the Notes.
 Section 6
    
    COVENANTS OF THE TRUST
  Section 7
    
    MATERIAL CHANGE
 (1)
    
    The Trust will promptly inform the Agents during the period prior to Closing of the full
particulars of:
 (a)
    
    any material change (whether actual, anticipated, contemplated or threatened)
in the Condition of the Trust;(b)
    
    any occurrence of a material fact or the discovery of an existing material
fact which, in any such case, is, or may be, of such nature as to (i) render the
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Preliminary Private Placement Memoranda, the Private Placement Memorandum, the
Preliminary Offering Memoranda or the Offering Memorandum untrue, false or misleading
in a material respect, (ii) result in a misrepresentation contained in the Preliminary
Private Placement Memoranda, the Private Placement Memorandum, the Preliminary
Offering Memoranda or the Offering Memorandum, or (iii) result in the Preliminary
Private Placement Memoranda, the Private Placement Memorandum, the Preliminary
Offering Memoranda or the Offering Memorandum not complying with Applicable Securities
Laws;(c)
    
    any change in any material fact contained in or referred to in any part of
the Preliminary Private Placement Memoranda, the Private Placement Memorandum, the
Preliminary Offering Memoranda or the Offering Memorandum; or(d)
    
    any other event, state of facts or circumstance which is, or may be, or has
occurred after the date of this Agency Agreement, of such nature as to render the
Preliminary Private Placement Memoranda, the Private Placement Memorandum, the
Preliminary Offering Memoranda or the Offering Memorandum untrue or misleading in any
material respect or which would result in any misrepresentation in the Preliminary
Private Placement Memoranda, the Private Placement Memorandum, the Preliminary
Offering Memoranda or the Offering Memorandum.
 (2)
    
    In addition to discharging its obligations under Section 7(1), the Trust will, in good faith,
discuss with the Agents any change, event, circumstance or fact contemplated in Section 7(1)
which is of such nature that there may be reasonable doubt as to whether notice should be
given to the Agents under Section 7(1).
 (3)
    
    During the period prior to the completion of the sale of the Notes the Trust will notify the
Agents of any notice or other correspondence received by it from any Securities Commission,
Governmental Authority or person requesting any information, meeting or hearing relating to
any event or state of affairs that the Trust reasonably believes may be material to the
Agents.
 (4)
    
    The Trust shall promptly comply with all applicable filing and other requirements under the
Applicable Securities Laws arising as a result of any change, fact, event or circumstance
referred to in Section 7(1).
 Section 8
    
    CONDITIONS OF CLOSING
  (a)
    the Trust and the Agents shall have complied fully with all Applicable
Securities Laws, prior to the Closing Time;
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(b)
    
    all conditions precedent to the issuance of the Notes under the Indenture
shall have been satisfied;(c)
    
    the Agents shall have received a legal opinion from the Trusts counsel, in
form and content satisfactory to the Agents and their counsel, acting reasonably,
addressed to the Agents and, with respect to item (iv) any Subscriber located in the
United States, as to (i) the establishment and existence of the Trust and the Seller;
(ii) the due authorization, execution and delivery, and the enforceability of this
Agency Agreement and the Subscription Agreements; (iii) the enforceability of the
Notes against the Trust; (iv) (A) the offer and sale of the Class A-1b Notes to
purchasers in the United States being exempt from the registration requirements of the
U.S. Securities Act, (B) the Indenture not being required to be qualified under the
Trust Indenture Act of 1939, and (C) the Trust not being, and after giving effect to
the offer and sale of the Notes and the application of the proceeds thereof as
described in the Private Placement Memorandum and the Offering Memorandum, required to
register as an investment company under the U.S. Investment Company Act; (v) the
offer and sale of the Class A-1a, Class A-2b and Class B Notes in Canada being exempt
from the prospectus requirements of the Applicable Securities Laws of the Selling
Provinces, and (vi) true sale matters with respect to the transactions contemplated by
the Purchase Agreement;(d)
    
    the Trust and the Agents shall have received from the Rating Agencies on or
prior to the Closing Date confirmation in writing that (i) the Class A-1a Notes and
Class A-1b Notes will each receive a rating of P-1 from Moodys and a rating of
R-1(high) from DBRS, (ii) the Class A-2b Notes will receive a rating of Aaa from
Moodys and AAA from DBRS, and (iii) the Class B Notes will receive a rating of A2
from Moodys and a rating of A from DBRS;(e)
    
    the Agents shall have received a copy of the Agreed Upon Procedures letter;(f)
    
    the Agents shall have received such certificates, opinions and other
documents as may reasonably be requested by the Agents and their counsel;(g)
    
    with respect to the Class A-1b Notes, the related Subscriber shall not have
exercised its Termination Right (as defined in the related Subscription Agreement);(h)
    
    the closing for the issuance and sale of the Series 2010-1 Class A-2a Asset
Backed Notes of the Trust shall occur contemporaneously with the Closing; and(i)
    
    the Agents shall have received irrevocable Subscription Agreements to
purchase the aggregate principal amount of the Class A-1a Notes, Class A-1b Notes,
Class A-2b Notes and Class B Notes being offered by the Trust.
 - 18 -




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Section 9
    
    CLOSING
   Section 10
    
    FEES AND EXPENSES
 (a)
    
    Fees. In consideration for the services of the Agents hereunder, the Seller,
or the Originator on behalf of the Seller, agrees to pay to the Agents the fees set
forth in Section 2(c) above.(b)
    
    Expenses. The Seller, or the Originator on behalf of the Seller, will pay
all reasonable expenses and fees in connection with the sale of the Notes, including,
without limitation, the fees set forth in Section 2(c) above, all expenses of or
incidental to the sale of the Notes; the fees and expenses of the Trusts counsel; all
costs incurred in the Jurisdictions in connection with the preparation of documents or
certificates relating to the offering of the Notes; all out-of-pocket expenses and
fees reasonably incurred by the Agents, including the fees and expenses of Agents
counsel, road show expenses and marketing fees; and except for the fees set forth in
Section 2(c) above, the foregoing fees and expenses incurred by the Agents or on its
behalf will be payable by the Seller, or the Originator on behalf of the Seller,
immediately upon receiving an invoice therefore from the Agents, and will be payable
whether or not the sale of the Notes is completed.
 Section 11
    
    INDEMNITIES
 (1)
    
    Each of the Originator and the Trust, jointly and severally (each, for the purposes of this
Section 11, an Indemnitor) will indemnify and save harmless the Agents and any Sub-Agents,
each person, if any, who controls the Agents or any Sub-Agents within the meaning of Section
15 of the U.S. Securities Act or Section 20(a) of the U.S. Exchange Act, and each of their
respective directors, officers, employees, agents and affiliates (each, an Indemnified
Person) from and against all actual or threatened claims, actions, suits, investigations and
proceedings (collectively Proceedings) and all losses (including, without limitation, any
loss, claim, damage, liability or action relating to purchases and sales), expenses, fees,
damages, obligations, payments and liabilities (collectively Liabilities), including without
limitation, all legal fees and disbursements actually and reasonably incurred in connection
with defending or investigating such Proceeding, which now or any time hereafter exist by
reason of:
 - 19 -




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(a)
    
    any misrepresentation or untrue statement or alleged misrepresentation or
alleged untrue statement, or omission of or alleged omission to state any material
fact or any other fact or information required to be stated or necessary to make any
statement therein not misleading in light of the circumstances in which it was made,
in the Preliminary Private Placement Memoranda, the Private Placement Memorandum, the
Preliminary Offering Memoranda or the Offering Memorandum or in any document
incorporated by reference therein or supplementary thereto, including without
limitation any investor presentation, marketing teaser, cashflows, prepay data,
Bloomberg cashflows (if posted) or other material prepared for and disseminated to
investors by or with the authorization of the Originator, its affiliates or the
Trust, or otherwise made or alleged to have been made by an Indemnitor to the
purchaser or Subscriber or any prospective purchaser or Subscriber;(b)
    
    the breach by an Indemnitor of any of the representations, warranties or
covenants set out in any Transaction Document; and(c)
    
    any breach or violation or any alleged breach or violation of any applicable
law or statute or any rule, regulation, policy, order or ruling made thereunder,
whether in force in Canada or elsewhere, resulting from any action taken or omitted to
be taken by an Indemnitor or any of its directors, officers or employees acting as
such in connection with the sale of the Notes,
 provided, however, that this indemnity shall not apply in respect of an Indemnified Person
to the extent such Liabilities arise out of or are based upon an untrue statement or
alleged untrue statement in or omission or alleged omission from any such documents in
reliance upon and in conformity with any written information relating to such Indemnified
Person furnished to the Issuer by or on behalf of the Indemnified Person specifically for
use therein.
 (2)
    
    If any Proceeding is brought against an Indemnified Person in respect of which indemnity may
be sought from an Indemnitor pursuant to the indemnities set forth in this Section 11, the
Indemnified Person will promptly notify the Indemnitor in writing, and the Indemnitor will
assume the defence of the action or claim, including the employment of counsel acceptable to
the Indemnified Person (acting reasonably) and the payment of all reasonable expenses. The
Indemnified Person will have the right to employ separate counsel in any Proceeding if:
 (a)
    
    the Indemnified Person has been advised by counsel that there may be legal
defences available to the Indemnified Person which are in conflict with defences
available to the Indemnitor (in which case the Indemnitor will not have the right to
assume the defence of such proceedings on the Indemnified Persons behalf);(b)
    
    the Indemnitor will not have assumed the defence of such proceedings and
employed counsel within a reasonable time after notice of commencement of proceedings;
or
 - 20 -




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(c)
    
    the employment of such counsel has been authorized by the Indemnitor in
connection with the defence of any proceedings;
 and the Indemnitor will pay the reasonable fees and expenses of the Indemnified Persons
counsel during the course of the investigation or defence, promptly as such expense, loss,
damage or liability is incurred; provided that the Indemnitor will not in any event be
required to pay more than one set of counsel fees for all Indemnified Persons. The
Indemnitor shall not be liable for any settlement of any proceeding effected without its
written consent, acting reasonably, but if settled with such consent or if there be a final
judgment for the plaintiff, the Indemnitor agrees to indemnify the Indemnified Persons from
and against any loss or liability by reason of such settlement or judgment. The Indemnitor
shall not, without the prior written consent of the Indemnified Persons, make an admission
of liability or effect any settlement of any pending or threatened proceeding in respect of
which any Indemnified Persons are or could have been a party and indemnity could have been
sought hereunder by such Indemnified Persons, unless such settlement includes an
unconditional release of such Indemnified Person from all liability on claims that are the
subject matter of such proceeding.
 (3)
    
    The right to indemnity herein provided will be in addition to and not in derogation of any
other right to indemnity or contribution which any Indemnified Person may have by statute or
otherwise at law.
 (4)
    
    The indemnities provided herein will remain in full force and effect until all possible
liability of the Indemnified Persons arising out of the transactions contemplated by this
Agency Agreement is extinguished by the operation of law and will not be limited to or
affected by any other indemnity obtained by the Indemnified Persons from any other person.
 Section 12
    
    RIGHTS OF TERMINATION
 (1)
    
    If prior to the Closing Date any inquiry, action, suit, investigation or other proceeding
whether formal or informal is instituted, announced or threatened or any order is made by any
federal, provincial or other governmental agency or body in relation to the Trust (other than
an inquiry, action, suit, investigation or other proceeding based solely on the activities or
alleged activities of the Agents) or any law or regulation (or the interpretation thereof) is
promulgated, changed or announced, which, in the sole opinion of any Agent, acting reasonably,
operates to prevent or materially adversely affect the distribution of the Notes or which, in
the sole opinion of any Agent, acting reasonably, materially adversely affects the value,
market price, ratings or the marketability of the Notes, such Agent shall be entitled, at its
sole option, in accordance with Section 12(5), to terminate its obligations under this Agency
Agreement by written notice to that effect given to the Trust at any time prior to the Closing
Date.
 (2)
    
    If prior to the Closing Date (i) there should develop, occur or come into effect or
existence, any event, action, state, condition or occurrence of national or international
consequence, acts of hostilities or escalation thereof or other calamity or
 - 21 -




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crisis or any
change or development involving a prospective change in national or international political,
financial or economic conditions, or any law, action, regulation or other occurrence of any
nature whatsoever which, in the sole opinion of any Agent, acting reasonably, materially
adversely affects or involves or may materially adversely affect or involve the Canadian, U.S.
or international financial markets or the business, affairs or operations of the Trust, or
(ii) the state of the Canadian, U.S. or international financial markets is such that, in the
sole opinion of any Agent, acting reasonably, the Notes cannot be profitably marketed; then,
in any one or more of the foregoing cases, such Agent shall be entitled, at its sole option,
in accordance with Section 12(5), to terminate its obligations under this Agency Agreement by
written notice to that effect given to the Trust at any time prior to the Closing Date.
 (3)
    
    If prior to the Closing Date there should occur or be announced any material adverse change
which, in the sole opinion of any Agent, acting reasonably, might reasonably be expected to
have a material adverse effect on the value, market price, ratings or the marketability of the
Notes, such Agent shall be entitled, at its sole option, in accordance with Section 12(5), to
terminate its obligations under this Agency Agreement by written notice to that effect given
to the Trust at any time prior to the Closing Date.
 (4)
    
    The Trust agrees that all terms and conditions in this Agency Agreement shall be construed as
conditions to be complied with so far as they relate to acts to be performed or caused to be
performed by it, that it will use its best efforts to cause such conditions to be complied
with and that any failure by it to comply with, or any breach of, or failure to satisfy, any
such conditions shall entitle any of the Agents to terminate its obligations to offer the
Notes for sale by notice to that effect given to the Trust at or prior to the Closing Date,
unless otherwise expressly provided in this Agency Agreement. The Agents may waive, in whole
or in part, or extend the time for compliance with, any terms and conditions without prejudice
to their rights in respect of any other terms and conditions or any other or subsequent breach
or non-compliance, provided that any such waiver or extension shall be binding upon the Agents
only if such waiver or extension is in writing and signed by all of the Agents, provided,
further, that in no event shall the Closing Date occur with respect to the Class A-1b Notes
following the exercise by the related Subscriber of its Termination Right under its
Subscription Agreement and no replacement Subscriber has executed a Subscription Agreement in
respect of the Class A-1b Notes.
 (5)
    
    The rights of termination contained in Section 12(1), (2), (3) and (4) may be exercised by
any of the Agents and are in addition to any other rights or remedies any of the Agents may
have in respect of any default, act or failure to act or non-compliance by Trust in respect of
any of the matters contemplated by this Agency Agreement or otherwise. In the event of any such
termination, there shall be no further liability on the part of the terminating Agent to
the Trust hereunder or on the part of the Trust, the Seller or the Originator to the
terminating Agent except in respect of any liability under Section 10 and Section 11. A
notice of termination given by an Agent under any of Section 12(1), (2), (3) and (4) shall
not be binding upon any other Agent. The
 - 22 -




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parties hereto agree that if either of the Agents
terminates its obligations hereunder with respect to the Class A-1b Notes in accordance
with the terms of this Agency Agreement, each of the Agents shall be deemed to have
terminated its obligations hereunder and the obligations of any purchaser or Subscriber to
purchase or subscribe for the Class A-1bNotes shall be terminated without any further act
or formality.
 (6)
    
    No act of the Agents in offering the Notes for sale or in assisting in the preparation of, or
joining in the execution of, the Preliminary Private Placement Memoranda, the Private
Placement Memorandum, the Preliminary Offering Memoranda or the Offering Memorandum shall
constitute a waiver by or estoppel against the Agents.
 Section 13
    
    SEVERAL OBLIGATIONS
  Section 14
    
    NOTICES
  To the Trust:Fleet Leasing Receivables Trustc/o PHH Vehicle Management Services Inc.as financial services agent2233 Argentia RoadMississauga, OntarioL5N 2X7Attention: Mark JohnsonFacsimile No.: 905-286-5363To the Originator:PHH Vehicle Management Services Inc.2233 Argentia RoadMississauga, OntarioL5N 2X7Attention: Mark JohnsonFacsimile No.: 905-286-5363To the Seller:Fleet Lease Receivables L.P.2233 Argentia Road, Suite 400, Room 4Mississauga, OntarioL5N 2X7
 - 23 -




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Attention:                  Mark JohnsonFacsimile No.:              905-286-5363To the Agents:Merrill Lynch Canada Inc.Brookfield Place, 181 Bay Street, Suite 400Toronto, Ontario M5J 2V8 CanadaAttention:                  Office of the General CounselFacsimile No.:              (416) 369-2004Banc of America Securities LLCOne Bryant ParkNew York, NY 10036U.S.A.Attention:                  William HeskettFacsimile No.:              (646) 855-5044
  Section 15
    
    SURVIVAL
  Section 16
    
    SEVERABILITY
  Section 17
    
    ENTIRE AGREEMENT
  - 24 -




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Section 18
    
    COUNTERPARTS
  Section 19
    
    GOVERNING LAW
    Section 20
    
    TIME OF THE ESSENCE
  Section 21
    
    LANGUAGE
  - 25 -




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Section 22
    
    INTERPRETATION
  (a)
    
    any reference in this Agency Agreement to a designated Section,
Subsection, Paragraph or other subdivision refers to the designated section,
subsection, paragraph or other subdivision of this Agency Agreement;(b)
    
    the words herein and hereunder and other words of similar import refer to
this Agency Agreement as a whole and not to any particular section or other
subdivision of this Agency Agreement;(c)
    
    the word including, when following any general statement, term or matter,
is not to be construed to limit such general statement, term or matter to the specific
items or matters set forth immediately following such word or to similar items or
matters, whether or not non-limiting language (such as without limitation or but
not limited to or words of similar import) is used with reference thereto but rather
refers to all other items or matters that could reasonably fall within the broadest
possible scope of such general statement, term or matter;(d)
    
    any reference to a statute includes and, unless otherwise specified herein,
is a reference to such statute and to the regulations made pursuant thereto, with all
amendments made thereto and in force from time to time, and to any statute or
regulations that may be passed which have the effect of supplementing or superseding
such statute or such regulation;(e)
    
    any reference to party or parties means the Trust, the Originator and the
Agents, or one of or both of the foregoing, as the context requires;(f)
    
    all amounts expressed herein in terms of money refer to lawful currency of
Canada and all payments to be made hereunder will be made in such currency;(g)
    
    the headings in this Agency Agreement are for convenience of reference only
and do not affect the interpretation of this Agency Agreement; and(h)
    
    words importing the masculine gender include the feminine or neuter gender
and words in the singular include the plural, and vice versa.
 Section 23
    
    FURTHER ASSURANCES
  - 26 -




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Section 24
    
    NO FIDUCIARY DUTY
  Section 25
    
    LIMITATION OF LIABILITY
   [ Remainder of page intentionally left blank ]
 - 27 -




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IN WITNESS WHEREOF
 BNY TRUST COMPANY OF CANADA, in its capacity as Trustee of FLEET LEASING RECEIVABLES TRUST, by its Financial
Services Agent, PHH VEHICLE MANAGEMENT SERVICES INC.By:
    /s/ Mark E. JohnsonName:
    Mark E. JohnsonTitle:
    Senior Vice President & TreasurerPHH VEHICLE MANAGEMENT SERVICES INC.By:
    /s/ Mark E. JohnsonName:
    Mark E. JohnsonTitle:
    Senior Vice President & TreasurerFLR GP 1 INC., as general partner on behalf of PHH
FLEET LEASE RECEIVABLES L.P.By:
    /s/ Mark E. JohnsonName:
    Mark E. JohnsonTitle:
    Senior Vice President & TreasurerMERRILL LYNCH CANADA INC.By:
    /s/ Rasha KatabiName:
    Rasha KatabiTitle:
    Managing Director - 28 -




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BANC OF AMERICA SECURITIES LLCBy:
    /s/ William HeskettName:
    William HeskettTitle:
    Managing Director - 29 -