Exhibit 10.15
 FLEET LEASING RECEIVABLES TRUST
   PHH FLEET LEASE RECEIVABLES L.P.
   PHH VEHICLE MANAGEMENT SERVICES INC.
   PHH CORPORATION
  
 TRUST PURCHASE AGREEMENT




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TRUST PURCHASE AGREEMENT
 TABLE OF CONTENTS
 ARTICLE 1INTERPRETATIONSection 1.1
    
    Definitions
    
    
    1Section 1.2
    
    References to Statutes
    
    
    22Section 1.3
    
    Extended Meanings
    
    
    22Section 1.4
    
    Sections and Headings
    
    
    22Section 1.5
    
    Accounting Principles
    
    
    23Section 1.6
    
    References to Acts of the Trust or the Issuer Trustee
    
    
    23Section 1.7
    
    Proper Law of Agreement
    
    
    23Section 1.8
    
    Invalidity of Provisions
    
    
    23Section 1.9
    
    Currency
    
    
    24Section 1.10
    
    Computation of Time Periods
    
    
    24Section 1.11
    
    Entire Agreement
    
    
    24Section 1.12
    
    Summary of the Transactions
    
    
    24ARTICLE 2PURCHASE OF LEASED EQUIPMENTSection 2.1
    
    Purchase
    
    
    24Section 2.2
    
    Payments
    
    
    25Section 2.3
    
    Adjustment to Portfolio
    
    
    25Section 2.4
    
    Grant of Security
    
    
    25Section 2.5
    
    Intercreditor Agreement
    
    
    26ARTICLE 3CONDITIONS PRECEDENTSection 3.1
    
    Conditions Precedent to Trusts Delivery of Agreement
    
    
    26Section 3.2
    
    Trusts Conditions Precedent to the Purchase
    
    
    27Section 3.3
    
    Sellers Condition Precedent to the Purchase
    
    
    28ARTICLE 4GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTSSection 4.1
    
    Representations and Warranties of the Seller and Servicer
    
    
    29Section 4.2
    
    Ineligible Leases
    
    
    34Section 4.3
    
    General Covenants of the Seller
    
    
    34Section 4.4
    
    General Covenants of the Performance Guarantor
    
    
    36Section 4.5
    
    Representations and Warranties of the Trust
    
    
    37ARTICLE 5SERVICING OF PORTFOLIOSection 5.1
    
    Appointment of Servicer
    
    
    38
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TABLE OF CONTENTS
 Section 5.2
    
    Servicing of Portfolio
    
    
    38Section 5.3
    
    Power of Attorney
    
    
    49Section 5.4
    
    Deemed Collections
    
    
    50Section 5.5
    
    Servicer Advances
    
    
    51Section 5.6
    
    Back-Up Servicer
    
    
    51Section 5.7
    
    Servicer Indemnity
    
    
    51Section 5.8
    
    Designation of Replacement Servicer
    
    
    53Section 5.9
    
    Replacement Servicer Fee
    
    
    54Section 5.10
    
    Payment Terms
    
    
    55ARTICLE 6APPLICATION OF PROCEEDSSection 6.1
    
    Application of Proceeds
    
    
    56Section 6.2
    
    GST on Fees
    
    
    62ARTICLE 7EVENTS OF TERMINATIONSection 7.1
    
    Events of Termination
    
    
    63Section 7.2
    
    Segregation of Payments
    
    
    64Section 7.3
    
    Clean-Up Provision
    
    
    64ARTICLE 8PERFORMANCE GUARANTEESection 8.1
    
    Performance of Obligations
    
    
    65Section 8.2
    
    Payments Free of Set-Off
    
    
    65Section 8.3
    
    Modifications
    
    
    65Section 8.4
    
    Guarantee Unconditional
    
    
    66Section 8.5
    
    No Subrogation
    
    
    68Section 8.6
    
    Settlement of Accounts
    
    
    68Section 8.7
    
    Stay of Acceleration
    
    
    68Section 8.8
    
    Reinstatement
    
    
    68Section 8.9
    
    Representations and Warranties
    
    
    69Section 8.10
    
    Waiver
    
    
    70Section 8.11
    
    Costs and Expenses
    
    
    70Section 8.12
    
    Termination
    
    
    71ARTICLE 9MISCELLANEOUSSection 9.1
    
    Notice
    
    
    71Section 9.2
    
    Amendments and Waivers
    
    
    73Section 9.3
    
    Successors and Assigns
    
    
    74Section 9.4
    
    Indemnification
    
    
    74
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TABLE OF CONTENTS
 Section 9.5
    
    Costs, Expenses and Taxes
    
    
    76Section 9.6
    
    Correction of Errors
    
    
    76Section 9.7
    
    Change in Circumstance
    
    
    76Section 9.8
    
    Time of Essence
    
    
    77Section 9.9
    
    Failure to Perform
    
    
    77Section 9.10
    
    Consent to Jurisdiction; Waiver of Immunities
    
    
    77Section 9.11
    
    Confidentiality
    
    
    77Section 9.12
    
    Further Assurances
    
    
    78Section 9.13
    
    Remedies
    
    
    78Section 9.14
    
    Limitation of Liability of Financial Services Agent and
Issuer Trustee
    
    
    78Section 9.15
    
    Limited Partnership
    
    
    79Section 9.16
    
    Execution in Counterparts
    
    
    79SchedulesSchedule A
    
    Eligibility CriteriaSchedule B
    
    Master Lease AgreementSchedule C
    
    Form of Agreed Upon Procedures ReportSchedule D
    
    Form of Portfolio ReportSchedule E
    
    Closing InformationSchedule F-1
    
    Form of Leased Equipment (Subject To Leases) Bill of SaleSchedule F-2
    
    Form of Leased Equipment Bill of SaleSchedule G
    
    Form of Back-Up Servicer AgreementSchedule H
    
    Form of Officers Certificate as to Certain RegistrationsSchedule I
    
    Form of Loan Acknowledgement
 -iii-




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TRUST PURCHASE AGREEMENT
 TRUST PURCHASE AGREEMENT BNY TRUST COMPANY OF CANADA FLEET LEASING RECEIVABLES TRUST Trust PHH FLEET
LEASE RECEIVABLES L.P. Seller PHH
VEHICLE MANAGEMENT SERVICES INC. PHH VMS PHH CORPORATION Performance Guarantor
  (a)
    
    The Seller is the beneficial owner of Leased Equipment and wishes to sell to
the Trust its beneficial interest in certain of such Leased Equipment, subject to the
Leases thereof;(b)
    
    The Trust is willing to purchase the Sellers beneficial interest in such
Leased Equipment, subject to such Leases;(c)
    
    The Servicer is prepared to service the assets sold to the Trust; and(d)
    
    The Performance Guarantor is willing to provide to the Trust certain covenants
contained herein, and the Trust is relying thereon.
  ARTICLE 1
INTERPRETATION
 Section 1.1       Definitions.
  Accounts
 Affiliate




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Aggregate Lease Balance
 Agreed Upon Procedures Report
 Agreement
 Annual Percentage Rate
 Applicable Law
 Applicable Rate
 Applicable Residual Percentage
 Back-Up Servicer
 Back-Up Servicer Agreement
 Back-Up Servicer Costs




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- 3 -  Back-Up Servicer Fee
 Balance Amounts
 Business Day
 Canadian Dollars $
 Cash Spread Account
 Charge-Off Ratio
 Charged-Off Lease
 Class A-1a Notes
 Class A-1b Notes
 Class A-2a Notes
 Class A-2b Notes




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- 4 - Class B Notes
 Closing Date
 Closing Payment
 Collections
 (i)
    
    all cash proceeds of related Lease Rights (including
prepayments in respect of such Lease Rights which are in respect of
periods after the Cut-Off Date);(ii)
    
    all Management Fees under such Securitized Lease;(iii)
    
    all Servicer Advances and Servicers Pre-Funded
Amounts to the extent related to such Lease;(iv)
    
    all prepayment fees or prepayment penalties related
to any such prepayment referred to in clause (i);(v)
    
    if such Securitized Lease is an Ineligible
Securitized Lease, all amounts paid by the Seller in connection with its
repurchase;(vi)
    
    all Deemed Collections paid by the Seller or the
initial Servicer in respect of such Securitized Lease; and(vii)
    
    all Net Proceeds in respect of the related Leased
Equipment,
  Collections Account
 Credit and Collection Policy




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- 5 -  Cut-Off Date
 DBRS
 Deemed Collections
 Defaulted Lease
 Deferred Rent
 Delinquency Ratio
 Delinquent Lease
 Distribution Date
 Eligible Floating Rate Index
 (i)
    
    the one-month bankers acceptance rate, based on the
rate as published by the Bank of Canada on its web site or other market
standard methodology;(ii)
    
    the one-month prime corporate paper rate, based on
the rate as published by the Bank of Canada on its web site or other
market standard methodology;(iii)
    
    the one-month asset-backed commercial paper rate,
either for a particular securitization or across a class of conduits, as
determined by PHH;




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- 6 - (iv)
    
    a rate based on PHHs weighted average cost of funds
(which may include or exclude funding costs under inter-corporate
borrowing transactions (subject to any agreed upon caps) and/or
securitization transactions); or(v)
    
    PHHs commercial paper funding rate, as determined by
PHH.
 Eligible Institution
 Eligible Lease
 Equipment
 Equivalent Amount
 Equivalent Rating
 Estimated Residual Collections
 Event of Termination
 Excluded Amounts
 Extraordinary Resolution
 Final Collection Date
 Financial Services Agent
 Financial Services Agreement
 Financing Transaction
 Fleet Receivables
 Fleet Service Contract




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- 7 - GAAP
 Governmental Authority
 GST Excise Tax Act Excise Tax Act
 Indenture Trustee
 Ineligible Master Lease
 Ineligible Securitized Lease
 Initial Pool Balance
 Insolvency Event




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- 8 - Intercreditor Agreement
 Interest Period provided however
 Issuer Trustee
 Lease
 Lease Margin
 Lease Principal
 Lease Rights
 (i)
    
    all rights and benefits accruing to the Seller under
such Lease, including all right, title and interest in and to the
Receivables payable and Collections of other Lease Rights received under
such Lease after the Cut-Off Date;(ii)
    
    all rights in or to payments (including both proceeds
and, to the extent the Seller has any rights therein, premium refunds)
under any insurance policies maintained by the Obligor pursuant to the
terms of such Lease, to the extent the same indemnify for loss or damage
to such Leased Equipment;




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- 9 - (iii)
    
    all rights in or to all payments made on account of
any loss of or damage to such Leased Equipment, excess wear and tear
thereon or excess use thereof, whether under such Lease or otherwise;(iv)
    
    all rights in or to all payments owing under the
Lease as a result of the early termination of such Lease;(v)
    
    the benefit of all covenants with respect to such
Leased Equipment by the Obligor under such Lease, including all
indemnities and covenants with respect to maintenance and repair, use and
insurance obligations, except to the extent that the same indemnify
against liability to others;(vi)
    
    the right of the Seller to ask for, demand, sue for,
collect, receive and enforce any and all sums payable under such Lease in
respect of such Leased Equipment and to enforce all other covenants,
obligations, rights and remedies thereunder with respect thereto,
including any rights with respect thereto under the related PHH Master
Lease Agreement, except to the extent that such rights indemnify against
liability to others;(vii)
    
    all right, title and interest of the Seller under
such Lease in, to and under all prepayments made after the Cut-Off Date,
guarantees, indemnities (except to the extent that the same indemnify
against liability to others), any vendor support agreements or
arrangements and the benefit of any statutory indemnities, payment or
reimbursement obligations or guarantees and all other agreements or
arrangements of any character (including all security interests in all
properties subject thereto) from time to time supporting or securing
payment or performance of the Obligors obligations in respect of such
Leased Equipment subject to such Lease (excluding any security deposits);(viii)
    
    all Records pertaining to such Lease, including the Lease itself; and(ix)
    
    all proceeds of or relating to the foregoing,
  Leased Equipment
 Limited Partner
 Losses
 Lowest Case Benchmark




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- 10 -  LP Partnership Agreement
 LP Transfer Agreements
 Management Fee
 Management Fee Yield
 Managing GP
 Master Lease
 Master Lease Prepayment Amount
 Material Adverse Effect




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- 11 - Minimum Yield Rate
   Servicing Fee
 Back-Up Servicing Fee
 A2 Coupon
 actual ending OC Pct
 actual ending B Pct
 B Multiplier
 B Coupon
 Moodys
 Net Book Value
 (i)
    
    all Collections (without regard to Servicers
Pre-Funded Amount Loans or Servicer Advances) on account of Lease
Principal in respect of such Securitized Equipment (or the related Lease)
in the form of billings;(ii)
    
    the Net Proceeds of disposition of such Securitized
Equipment and any of the related Lease Rights allocable to Lease
Principal;(iii)
    
    the Net Proceeds of settlement allocable to Lease
Principal in accordance with the terms of the related Lease; and




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- 12 - (iv)
    
    any other Collections allocable to Lease Principal in
respect of the related Lease;
  Net Defaulted Lease Balance
 Net Proceeds
 (i)
    
    the amount of any security deposit applied by the
Seller in partial satisfaction of the purchase price of such Leased
Equipment or other obligations of the Obligor under the Securitized Lease,
such as excess wear and tear charges or guaranteed residuals, and(ii)
    
    all monthly rental payments paid by the Obligor
during any extension periods under the Securitized Lease,
  Noteholders
 Notes
 Obligations
 Obligor




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- 13 - Obligor Option
 OC Amount
 (i)
    
    on the Closing Date, an amount equal to 4.75% of the
Initial Pool Balance;(ii)
    
    at any time thereafter up to the Final Collection
Date, an amount equal to the greater of the Target OC Amount and the Floor
OC Amount; and(iii)
    
    from and after the Final Collection Date, nil,
 Target OC Amount Floor OC Amount
 Originator
 Outstanding Note Balance
 Outstanding Principal Note Balance
 Partners
 Permitted Investments
 (i)
    
    obligations issued or fully guaranteed as to both
credit and timeliness by the Government of Canada;(ii)
    
    short-term or long-term unsecured debt obligations of
a Province or Territory of Canada, or a bank under the Bank Act, provided
that such obligations are rated at least as follows by the Rating
Agencies:
 (A)
    
    R-1 (middle) (short term) or AA (low) (long
term) by DBRS; and(B)
    
    P-1 (short term) or Aa3 (long term) by
Moodys; or
 (iii)
    
    such other obligations which may satisfy the Rating
Agency Condition;




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- 14 -  Permitted Liens
 Person
 PHH Master Lease Agreement
 Pool Balance
 Portfolio of Assets
 Portfolio Report
 PPSA Personal Property Security Act
 Principal Distribution Amount




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- 15 - Purchase
 Purchased Assets
 QST
 Rating Agencies Rating Agency
 Rating Agency Condition
 Receivables
 Records
 Relevant Jurisdiction
 Remaining Lease Term
 Replacement Servicer
 Replacement Servicer Fee




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- 16 - Reporting Period
 Required Amount
 Required Cash Spread Amount
 Required Insurance
 Required Yield Supplement Amount
 Responsible Officer
 S&P
 Sale Price
 Securitization Collateral
 Securitization Security Interests
 Securitized Equipment
 Securitized Lease




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- 17 -  Security Interest
 Sellers Book Value
 Series 2010-1 Supplement
 Servicer
 Servicer Advance
 Servicer Default
 (a)
    
    the Servicer defaults in the payment or deposit of any amount due hereunder or
under any other Transaction Document and such default remains unremedied for a period
of three Business Days after written notice of such default has been received by the
Servicer or the Servicer has knowledge of such default;(b)
    
    the Servicer defaults in the observance or performance in any material manner
of any of its covenants or obligations contained in any of the Transaction Documents
other than as referred to in (a) above and, if such default is capable of
rectification, such default remains unremedied for a period of 30 days after
(i) written notice of such default has been received by the Servicer or (ii) the
Servicer has knowledge of such default;(c)
    
    any representation or warranty made by the Servicer (or any of its officers) in
or pursuant to any of the Transaction Documents or any Portfolio Report proves to have
been false or incorrect when made (except to any extent which has not had and which
would not reasonably be expected to have a Material Adverse Effect) and, if the
circumstances giving rise to such false or incorrect representation or warranty are
capable of rectification (such that, thereafter, such representation and warranty would
prove correct), such representation or warranty remains




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- 18 - uncorrected for a period of 30 days after (i) written notice specifying the
incorrectness or (ii) the Servicer has knowledge of such false or incorrect
representation or warranty;(d)
    
    while PHH VMS is the Servicer, either Rating Agency rates the long term
unsecured debt of the Performance Guarantor at or below CCC (or its equivalent) or the
Performance Guarantor no longer has a credit rating for its long term unsecured debt;(e)
    
    an Insolvency Event in respect of the Servicer or, if the Servicer is PHH VMS,
the Performance Guarantor, has occurred; or(f)
    
    if the Servicer is PHH VMS, the Performance Guarantor defaults in the
performance of its obligations hereunder or its obligations under Section 8.1 are no
longer in full force and effect.
 Servicer Fee
 Servicers Pre-Funded Amount
 Servicers Pre-Funded Amount Loan
 Sub Prime Lease Ò
 Subsidiary
 Substitute Servicer
 Swap Agreement




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- 19 - Swap Counterparty
 Term
 Three Month Average Charge-Off Ratio
 Three Month Average Delinquency Ratio
 Transaction Documents
 Trust Expenses
 Trust Indenture
 U.S. Dollar Collections Account
 U.S. Dollars or U.S. $
 Weighted Average Cost of Funds




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- 20 -  Weighted Average Day Count
 Yield Shortfall
 Yield Shortfall Lease
 Yield Shortfall Lease Average Balance
 Yield Shortfall Lease Break Even Amount




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- 21 - Yield Shortfall Lease Remaining Term
 Yield Supplement Account
 Yield Supplement Draw Amount
 [CMYR  (LCB + Lease Margin + (12 * (MF /
BLB)))]
 [CMYR  (APR + (12 * (MF / BLB)))]
  BLB
 CMYR
 LCB
 Lease Margin
 MF
 APR




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- 22 - Servicing Fee
 Back-Up Servicing Fee
 A2 Coupon
 actual beginning OC Pct
 actual beginning B Pct
 B Coupon
 Section 1.2       References to Statutes.
  Section 1.3       Extended Meanings.
  Section 1.4       Sections and Headings.




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- 23 - Section 1.5       Accounting Principles.
 GAAP
 Section 1.6       References to Acts of the Trust or the Issuer Trustee.
  Section 1.7       Proper Law of Agreement.
  Section 1.8       Invalidity of Provisions.




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- 24 - Section 1.9       Currency.
  Section 1.10      Computation of Time Periods.
  Section 1.11      Entire Agreement.
  Section 1.12      Summary of the Transactions.
  ARTICLE 2
PURCHASE OF LEASED EQUIPMENT
 Section 2.1       Purchase.
 (1)
    
    On the Closing Date, and subject to the terms and conditions hereof (including compliance by
the Seller with the conditions precedent set out in Sections 3.1 and 3.2 and compliance by the
Trust with the conditions precedent set out in Section 3.3), the Seller shall sell to the
Trust, and the Trust shall purchase from the Seller, (i) all of the Sellers beneficial right,
title and interest in and to the Leased Equipment listed in Schedule E hereto subject to
Leases, including the related Lease Rights, and (ii) without limitation, all of the Sellers
rights under the LP Transfer Agreements (including the




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- 25 - powers of attorney contained therein) but only to the extent relating to the Purchased
Assets described in clause (i), for a total price equal to the Closing Payment.(2)
    
    Immediately upon the completion of the Purchase, the Seller and the Trust shall execute and
deliver the Master Lease and the Seller shall pay to the Trust the Sale Price. Upon such
payment, all of the Trusts beneficial right, title and interest in and to the Securitized
Equipment, but not any right, title or interest in or to the related Lease Rights or the
assets described in Section 2.1(1)(ii), shall be sold, transferred, conveyed and assigned to
the Seller effective as at the Closing Date, the continuity of the Trusts interest in such
Securitized Equipment being maintained by virtue of the Master Lease, and the Trust shall
convey the Securitized Equipment, but not any right, title or interest in or to the related
Lease Rights or the assets described in Section 2.1(1)(ii), to the Seller by delivering to the
Seller a bill of sale substantially in the form of Schedule F-2.
 Section 2.2       Payments.
  Section 2.3       Adjustment to Portfolio.
  Section 2.4       Grant of Security.
 (1)
    
    As general and continuing collateral security for the due payment and performance of all
present and future indebtedness, liabilities and obligations of every kind which the Seller




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- 26 - has from time to time incurred or may be under to the Trust under this Agreement, including
any liability for damages arising from or relating to the breach, disclaimer, resiliation or
repudiation of this Agreement or the Master Lease by the Seller, the Seller hereby grants to
the Trust a security interest (and, with respect to corporeal movable property situated in
the Province of Quebec and forming part of the Securitization Collateral (as defined below),
grants a movable hypothec to the extent of the sum of $600,000,000 with interest thereon
from the date hereof at the rate of 25% per annum) (collectively, the Securitization
Security Interests) in all of its right, title and interest in, to and under all
Securitized Equipment and all proceeds thereof (collectively, the Securitization
Collateral).(2)
    
    The Seller confirms that value has been given. The Seller and the Trust agree that the
Securitization Security Interests will attach immediately to any Securitization Collateral in
which the Seller has any interest on the date of this Agreement and, in respect of any
after-acquired Securitization Collateral, forthwith at the time that the Seller acquires an
interest in such after-acquired Securitization Collateral, and that there is no agreement to
postpone attachment.(3)
    
    Notwithstanding the grant of security in this Section 2.4, the Servicer will have the right
to collect any claim forming part of the Securitization Collateral in accordance with and
subject to the terms and conditions of this Agreement.
 Section 2.5       Intercreditor Agreement.
  ARTICLE 3
CONDITIONS PRECEDENT
 Section 3.1       Conditions Precedent to Trusts Delivery of Agreement.
  (a)
    
    a certificate of an officer of each of (i) the Seller (or of a general partner
of the Seller), (ii) each partner of the Seller, (iii)the Servicer and (iv) the
Performance Guarantor, in each case attaching copies of its articles and by-laws (or
limited partnership agreement, as applicable), an appropriate resolution of its
directors or partners and the names and true signatures of the officers authorized to
sign this Agreement and the other documents and certificates contemplated hereby on its
behalf, on which certificate the Trust shall be entitled to conclusively rely until
such time as the Trust receives from the Seller, such partners, the Servicer, or the
Performance Guarantor, as the case may be, a replacement certificate meeting the
requirements of this Section 3.1(a);




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- 27 - (b)
    
    a certificate of compliance issued under the Canada Business Corporations Act
in respect of the Servicer, a certificate of status under the Manitoba Partnerships Act
in respect of the Seller and a certificate of good standing issued by the State of
Maryland in respect of the Performance Guarantor;(c)
    
    executed copies of this Agreement, the Swap Agreement, the Back-Up Servicer
Agreement, the Intercreditor Agreement and the LP Transfer Agreements; and(d)
    
    such other approvals, opinions or documents as the Trust may reasonably
request.
 Section 3.2       Trusts Conditions Precedent to the Purchase.
  (a)
    
    no Event of Termination shall have occurred and be continuing;(b)
    
    all conditions precedent set out in the Trust Indenture to the issuance of the
Notes shall have been satisfied;(c)
    
    the Class A-1a Notes and the Class A-1b Notes will have each been rated R-1
(high) by DBRS, and P-1 by Moodys, the Class A-2a Notes and the Class A-2b Notes will
have each been rated AAA by DBRS, and Aaa by Moodys, and the Class B Notes will have
been rated A by DBRS, and A2 by Moodys;(d)
    
    the Seller having delivered the following:
 (i)
    
    the Agreed Upon Procedures Report in respect of the
Securitized Leases addressed to, among others, the initial Noteholders and
DBRS and dated within five business days of the Closing Date;(ii)
    
    a certificate of the Seller, the Servicer and the
Performance Guarantor to the effect that, as of the Closing Date and after
giving effect to the Purchase on the Closing Date (x) the representations
and warranties of the Seller, the Servicer and the Performance Guarantor
set out in Article 4 are true and correct; and (y) no event has occurred
and is continuing, or would result from the Purchase, which constitutes an
Event of Termination or would constitute an Event of Termination but for
the requirement that notice be given or time elapse or both;(iii)
    
    an executed copy of the Master Lease in respect of
the Purchase;(iv)
    
    a bill of sale substantially in the form of Schedule
F-1;(v)
    
    a bill of sale substantially in the form of Schedule
F-2;




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- 28 - (vi)
    
    purchase exemption certificates relating to the
exigibility of provincial sales tax with respect to each applicable
provincial jurisdiction in which any of the Securitized Equipment is
located;(vii)
    
    favourable legal opinions of (i) Blake, Cassels &
Graydon LLP, counsel for the Seller and the Servicer, (ii) in-house
counsel for the Performance Guarantor, and (iii) as to certain matters of
Manitoba law, Aikins, MacAulay & Thorvaldson LLP, in each case in form and
substance satisfactory to the Trust;(viii)
    
    an executed copy of the appropriate confirmation under the Swap
Agreement;(ix)
    
    evidence of compliance with or exemption from the
Bulk Sales Act(Ontario), except sections 3 and 7 thereof;(x)
    
    reports showing the results of searches conducted
against the Seller, the Servicer and the Limited Partner under applicable
personal property security registers in each Relevant Jurisdiction,
together with executed copies of all discharges or releases of prior
Security Interests relating to Purchased Assets and Securitized Equipment
that are then to be sold hereunder; provided that PHH VMS may establish
that any particular registration does not affect any such Purchased Assets
or Securitized Equipment, by delivering a letter or acknowledgment signed
by the applicable secured party or, as to the matters addressed in the
officers certificate attached at Schedule H hereto, by delivery of an
officers certificate in such form signed by a Responsible Officer
attesting thereto; and(xi)
    
    copies of verification statements or other filings
filed in each Relevant Jurisdiction (other than Quebec, in respect of
which such filings shall be made promptly (and in any event, within 5
Business Days) following the Closing Date) sufficient to perfect or render
opposable the interests of the Trust in the related Lease Rights;
 (e)
    
    the Seller having made the loan to the Trust for the payment of any GST and or
QST applicable to the Master Lease Prepayment Amount, as contemplated by Section 2.2;
and(f)
    
    such other approvals, opinions and documents as the Trust may reasonably
request.
 Section 3.3       Sellers Condition Precedent to the Purchase.




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- 29 -  ARTICLE 4
GENERAL REPRESENTATIONS, WARRANTIES AND COVENANTS
 Section 4.1       Representations and Warranties of the Seller and Servicer.
 (1)
    
    Seller Representations. The Seller represents and warrants to the Trust, and
acknowledges that the Trust has in reliance thereon entered into this Agreement and will
complete the Purchase hereunder, that, as at the Closing Date:
 (a)
    
    the Seller is a limited partnership validly formed and subsisting under the
laws of Manitoba, in each case with full power and authority to enter into and perform
its obligations under this Agreement and all Transaction Documents delivered by it
hereunder and to do all acts and things as are required or contemplated hereunder and
is duly qualified to carry on business in each jurisdiction in which the failure to do
so could reasonably be expected to have a Material Adverse Effect;(b)
    
    each of the Partners is a subsisting corporation under the laws of Manitoba,
with, (i) in the case of the Managing GP, full power and authority to, as general
partner of the Seller, enter into and perform its obligations under this Agreement and
all Transaction Documents delivered by it hereunder; and (ii) in the case of the
Limited Partner, full power and authority to enter into and perform its obligations
under the LP Transfer Agreements;(c)
    
    each of this Agreement and the Master Lease has been duly executed and
delivered by (or on behalf of) it and constitutes a legally binding obligation of the
Seller enforceable against it in accordance with its terms, and each of the LP Transfer
Agreements has been duly executed and delivered by the Limited Partner and constitutes
a legally binding obligation of the Limited Partner enforceable against it in
accordance with its terms, in each case subject to applicable bankruptcy,
reorganization, insolvency, moratorium or other similar laws affecting creditors
rights generally and equitable principles of general application (regardless of whether
enforcement is sought in a proceeding at law or in equity);(d)
    
    the Seller will be registered for GST purposes under Part IX of the Excise Tax
Act(Canada) and for QST purposes under the Act respecting the Quebec sales tax;(e)
    
    each of the Securitized Leases is an Eligible Lease and, as of the Cut-Off
Date, the information in respect thereof set out in Schedule E is in all material
respects true and correct;(f)
    
    the Securitized Leases (other than those whose Obligors are located in the
Province of Quebec) have been randomly selected from the Eligible Leases available to
be selected as Securitized Leases (or constitute all Eligible Leases




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##### 



- 30 - available to be selected as Securitized Leases), provided that, in connection with
the selection of Securitized Leases originated before April 1, 2009, such
Securitized Leases were selected from the available Eligible Leases in reverse order
of their month of origination (or constitute all such Eligible Leases available to
be selected as Securitized Leases);(g)
    
    the Seller or the Managing General Partner have taken all action necessary to
authorize the execution, delivery and performance of all Transaction Documents to
which the Seller is a party and the Limited Partner has taken all action necessary to
authorize the execution, delivery and performance of the LP Transfer Agreements;(h)
    
    the execution, delivery, compliance with and performance by the Seller of the
terms and conditions of the Transaction Documents to which it is a party, and the
execution, delivery, compliance with and performance by the Limited Partner of the
terms and conditions of the LP Transfer Agreements, will not, in either case:
 (i)
    
    result in a violation of any Applicable Laws
(including any privacy laws) in any material respect;(ii)
    
    result in a breach of, conflict with or constitute a
default under any loan agreement, indenture, trust deed or any other
agreement or instrument to which the Seller or the Limited Partner is a
party or by which it is bound (including the LP Partnership Agreement)
which would reasonably be expected to have a Material Adverse Effect;(iii)
    
    require any authorization, order, approval or
consent of, or any notice to or filing with, any Governmental Authority
having jurisdiction except such as has already been given, filed or
obtained, as the case may be; or(iv)
    
    result in or require the creation of any Security
Interest, other than in favour of the Trust;
 (i)
    
    the documents and instruments delivered on the Closing Date will be effective
to validly convey to the Trust a valid and perfected ownership interest in the Lease
Rights related to the Securitized Leases, free and clear of any Security Interests
arising through the Seller;(j)
    
    the Securitized Equipment (or, in the case of Securitized Equipment that was
sold during the period from the Cut-Off Date to the Closing Date after the return
thereof by the lessee under the related PHH Master Lease, the Lease Rights in
connection therewith) was validly transferred to the Seller by the Limited Partner, and
was transferred by PHH VMS to the Limited Partner, in each case, free and clear of any
Security Interest;




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- 31 - (k)
    
    the location of the chief executive office and chief place of business of the
Seller and of the Limited Partner is Ontario;(l)
    
    all information provided by the Servicer (on behalf of the Seller) to the Trust
or its advisors or to the Rating Agencies (or known to the Servicer in the case of any
document not furnished by or on behalf of the Servicer) in connection with the
transactions contemplated by the Transaction Documents, taken as a whole, does not
contain any untrue statement of a material fact or omit to state a material fact
necessary in order to make such information, in light of the circumstances under which
it was provided, not misleading;(m)
    
    all filings, recordings, notifications, registrations or other actions under
all Applicable Law have been made or taken (subject to certain formalities under the
Civil Code(Quebec)), and all approvals obtained, in each Relevant Jurisdiction to give
legal effect to the transactions contemplated by the Transaction Documents and the LP
Transfer Agreements (except where the failure to have done so would not have a Material
Adverse Effect) and to validate, preserve, perfect and protect the ownership interest
of the Trust in the Lease Rights relating to the Securitized Leases and the
Securitization Security Interests;(n)
    
    there are no proceedings or investigations pending or, to the knowledge of the
Seller, threatened against the Seller at law or in equity or before any arbitrator or
before any Governmental Authority (i) asserting the invalidity of any Transaction
Document; (ii) seeking to prevent consummation of any of the transactions contemplated
in the Transaction Documents; (iii) seeking any determination or ruling that would
reasonably be expected to have a Material Adverse Effect; or (iv) seeking to affect
adversely, challenge or dispute filing positions taken by the Seller with respect to
the income or capital tax attributes of the transactions contemplated by the
Transaction Documents or the Securitized Leases under any federal or provincial tax
legislation;(o)
    
    the Seller is a Canadian partnership within the meaning of the Income Tax Act
(Canada);(p)
    
    no Person has any written or oral agreement or option or any right or privilege
capable of becoming an option or agreement for the purchase or acquisition from the
Seller of any of the Securitized Leases or related Leased Equipment, other than (i) the
Trust, (ii) the Obligors pursuant to their Obligor Options, or (iii) any Person to whom
PHH VMS has agreed to sell Securitized Equipment that was returned by the lessee on or
after the Cut-Off Date and prior to the Closing Date (as a result of the return of such
equipment to PHH VMS or the Servicer pursuant to the terms of the related Lease); and(q)
    
    none of the Securitized Leases is a Sub Prime Lease.




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- 32 - 
 (2)
    
    Servicer Representations. The Servicer represents and warrants to the Trust, and
acknowledges that the Trust has in reliance thereon entered into this Agreement and will
complete the Purchase hereunder, that, as at the Closing Date:
 (a)
    
    the Servicer is a subsisting corporation under the laws of Canada, with full
corporate power and authority to enter into and perform its obligations under this
Agreement and all Transaction Documents delivered by it hereunder and the LP Transfer
Agreements to which it is a party and to do all acts and things as are required or
contemplated hereunder and is duly qualified to carry on business in each jurisdiction
in which the failure to do so would have a Material Adverse Effect;(b)
    
    the Servicer has taken all corporate action necessary to authorize the
execution, delivery and performance of all Transaction Documents and the LP Transfer
Agreements to which the Servicer is a party;(c)
    
    each of this Agreement and the LP Transfer Agreements to which the Servicer is
a party has been duly executed and delivered by it and constitutes a legally binding
obligation of the Servicer enforceable against it in accordance with its terms, subject
to applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws
affecting creditors rights generally and equitable principles of general application
(regardless of whether enforcement is sought in a proceeding at law or in equity);(d)
    
    its consolidated balance sheet as at the date of its most recently completed
fiscal year and the related statements of income and retained earnings for such fiscal
year, certified by its auditors, copies of which have been furnished to the Trust,
fairly present its consolidated financial condition as at such date and the
consolidated results of its operations for the period ended on such date, all in
accordance with GAAP; and since such date, there has been no change in any such
condition or operations which would have a Material Adverse Effect;(e)
    
    all information provided by the Servicer to the Trust or its advisors or to the
Rating Agencies (or known to the Servicer in the case of any document not furnished by
or on behalf of the Servicer) in connection with the transactions contemplated by the
Transaction Documents, taken as a whole, does not contain any untrue statement of a
material fact or omit to state a material fact necessary in order to make such
information, in light of the circumstances under which it was provided, not misleading;(f)
    
    all information provided in each Portfolio Report is or will be accurate in all
material respects on the date such Portfolio Report is delivered;(g)
    
    the records and materials containing particulars of the Obligors, the
Securitized Leases and the Leased Equipment made available to the Trust from time to
time, when taken as a whole, will be true and correct in all material respects;




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- 33 - (h)
    
    the computer records of the Servicer which contain particulars of the
Securitized Leases and the Leased Equipment will contain notations, marks or other
designations sufficient to identify that the Lease Rights have been assigned to the
Trust and that the Leased Equipment has been sold to the Seller;(i)
    
    the location where the books, records, documents and originals of Securitized
Leases are being maintained is in the custody of the Servicer at its address shown
herein;(j)
    
    there are no proceedings or investigations pending or, to the knowledge of the
Servicer, threatened against the Servicer at law or in equity or before any arbitrator
or before any Governmental Authority (i) asserting the invalidity of any Transaction
Document; (ii) seeking to prevent consummation of any of the transactions contemplated
in the Transaction Documents; (iii) seeking any determination or ruling that would
reasonably be expected to have a Material Adverse Effect; or (iv) seeking to affect
adversely or challenge or dispute filing positions taken by the Servicer with respect
to the income or capital tax attributes of the transactions contemplated by the
Transaction Documents or the Securitized Leases under any federal or provincial tax
legislation;(k)
    
    the Servicer is not a non-resident of Canada within the meaning of the Income
Tax Act(Canada);(l)
    
    the Servicer is registered to collect provincial sales tax and harmonized sales
tax in all applicable provinces of Canada;(m)
    
    the Servicers GST registration number under Part IX of the Excise Tax Act
(Canada) is 104164223 RT0001;(n)
    
    the execution, delivery, compliance with and performance by the Servicer of the
terms and conditions of the Transaction Documents and the LP Transfer Agreements to
which it is a party, will not:
 (i)
    
    result in a violation of any Applicable Laws
(including any privacy laws) in any material respect;(ii)
    
    result in a breach of, conflict with or constitute a
default under any loan agreement, indenture, trust deed or any other
agreement or instrument to which the Servicer is a party or by which it is
bound which would reasonably be expected to have a Material Adverse
Effect;(iii)
    
    require any authorization, order, approval or
consent of, or any notice to or filing with, any Governmental Authority
having jurisdiction except such as has already been given, filed or
obtained, as the case may be; or




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- 34 - (iv)
    
    result in or require the creation of any Security
Interest, other than in favour of the Trust; and
 (o)
    
    the Servicers QST registration number under the Act respecting the Quebec
sales taxis 1001439118 TQ0001.
 (3)
    
    Survival. The representations and warranties set forth in Sections 4.1(1) and 4.1(2)
will survive the Closing Date and remain in full force and effect for the benefit of the
Trust.
 Section 4.2       Ineligible Leases.
 (1)
    
    If, at any time after the Closing Date, the Seller or the Servicer determines that any
Securitized Lease was not an Eligible Lease as at the Cut-off Date, or for any reason it is
determined that the Trust did not acquire ownership of the related Lease Rights free and clear
of any Security Interest arising through or under the Seller or the Servicer (in each case, an
Ineligible Securitized Lease), the Seller or the Servicer, as applicable, will notify the
Trust and the Financial Services Agent promptly in writing. On the Distribution Date next
succeeding the Reporting Period in which such determination is made, the Seller will deposit
to the Collections Account an amount equal to (i) the Net Book Value of the Ineligible
Securitized Lease, plus (ii) all accrued and unpaid interest then owing under such Lease,
whereupon (and in consideration thereof) the Trust will be deemed to have sold, without the
necessity of any further instrument or formality, the rights of the Trust under the Master
Lease in respect of the related Leased Equipment, together with the related Lease Rights to
the Seller free and clear of all Security Interests arising through the Trust but otherwise on
an as is, where is basis without recourse to, or representation or warranty of, the Trust.
The amounts required to be deposited in the Collections Account pursuant to Section 4.2(1)
constitute a refund of the Master Lease Prepayment Amount in respect of the related Leased
Equipment.
 (2)
    
    Upon such payment, any incorrectness of any representation and warranty of the Seller or the
Servicer contained in the Transaction Documents by virtue of such Ineligible Securitized Lease
shall be deemed to have been rectified.
 Section 4.3       General Covenants of the Seller.
  (a)
    
    to preserve and maintain its existence, rights, franchises and privileges and
qualify and remain qualified to carry on business in each jurisdiction, except where
the failure to do so would not reasonably be expected to have a Material Adverse
Effect;(b)
    
    to provide the Trust with at least 10 Business Days prior notice of any change
to its name or the location of its chief executive office;




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- 35 - (c)
    
    to comply in all respects with all Applicable Laws (including privacy laws)
relating to the Seller, the Securitized Leases and the Securitized Equipment, except
where the failure to do so would not have a Material Adverse Effect;(d)
    
    to not sell, assign (by operation of law or otherwise) or dispose of any part
of the Securitized Leases or Securitized Equipment or create or suffer to exist any
Security Interest upon or with respect to any of the Securitized Leases or Securitized
Equipment except for Permitted Liens;(e)
    
    to permit the Trust, the Indenture Trustee or a Replacement Servicer, from time
to time during normal business hours and on two Business Days prior written notice, to
inspect, audit, check and make abstracts from the Sellers books, accounts, records or
other papers pertaining to the Securitized Leases or Securitized Equipment;(f)
    
    to make notations in its books, records, documents and instruments relating to
the Securitized Leases or Securitized Equipment to evidence the interest of the Trust
therein;(g)
    
    to, from time to time at its expense, promptly execute and deliver all
instruments and documents and make or cause to be made all filings, recordings,
registrations and take all other actions in each Relevant Jurisdiction necessary to
validate, preserve, perfect or protect the ownership interest of the Trust in the
Securitized Leases and Lease Rights and the Securitization Security Interests; provided
that neither the Seller nor the Servicer shall be required, whether under this
paragraph (g) or otherwise, to amend any registrations or make new registrations
against any Obligors to reflect any of the transactions contemplated herein or in the
LP Transfer Agreements, unless such amendments or new registrations are required under
Applicable Law in order to ensure the continued perfection of the Trusts interest in
the Securitized Leases and Lease Rights and the Securitization Security Interests;(h)
    
    to maintain the Trust as a loss payee, as its interest may appear, or an
additional named insured under all policies of insurance, if any, carried by the Seller
(or by the Servicer on behalf of the Seller) in respect of third party liability claims
applicable to or relating to the Leased Equipment;(i)
    
    to furnish to the Trust and the Indenture Trustee:
 (i)
    
    its unaudited financial statements within 120 days of
each fiscal year end and its unaudited quarterly financial statements
within 60 days of each fiscal quarter end;(ii)
    
    as soon as possible and in any event within two
Business Days after the Seller becomes aware of the occurrence of an Event
of Termination or an event which, with notice or lapse of time or both
would constitute an




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- 36 - Event of Termination, a statement of an appropriate officer of the Seller
setting forth the relevant details and any action which it has taken or is
proposing to take in respect thereof; and(iii)
    
    as soon as possible and in any event within 10
Business days after the Seller becomes aware of a transfer of the direct
ownership of a Partner or an Insolvency Event occurring with respect to a
Partner;
 (j)
    
    to promptly notify the Trust and the Rating Agencies of any amendment,
limitation or restriction of any license issued to the Seller by a regulatory authority
relating to the carrying on by the Seller of its business if such amendment, limitation
or restriction would have a Material Adverse Effect;(k)
    
    to ensure that the rate quoted to an Obligor upon receipt of the exercise of
its right to fix the rate underlying any Securitized Lease shall be the rate provided
for under the related Lease or PHH Master Lease Agreement;(l)
    
    subject to compliance with GAAP, to record the sale of the Purchased Assets to
the Trust as a sale for financial accounting and other reporting purposes or, if GAAP
does not permit such presentation, to disclose in its audited financial statements that
the Purchased Assets have been sold to the Trust, in form and substance acceptable to
the Trust;(m)
    
    to not enter into any Financing Transaction without satisfying the Rating
Agency Condition in respect of the Notes; and(n)
    
    to timely and fully perform and comply with all material terms, covenants and
other provisions of the Securitized Leases required to be performed by and observed by
the Seller thereunder.
 Section 4.4       General Covenants of the Performance Guarantor.
  (a)
    
    except as permitted pursuant to Section 9.3, to (i) preserve and maintain its
corporate existence (except in the case of a merger or consolidation if the surviving
entity assumes all of the Performance Guarantors obligations hereunder), rights,
franchises and privileges and to qualify and remain qualified to carry on business in
each jurisdiction in which the failure to do so would have a Material Adverse Effect;
provided, however, nothing in this clause shall prohibit or limit in any respect
transactions in the ordinary course of business of the Performance Guarantor or any of
its Subsidiaries;(b)
    
    to comply with all Applicable Laws (including privacy laws) relating to the
Performance Guarantor, except where the failure to do so would not have a Material
Adverse Effect; and




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##### 



- 37 - (c)
    
    to furnish to the Trust:
 (i)
    
    to the extent not publicly available, promptly after
the sending or filing thereof, copies of all financial statements which
the Performance Guarantor files with any securities commission or similar
regulatory body;(ii)
    
    as soon as possible and in any event within ten
Business Days after the Performance Guarantor becomes aware of the
occurrence of an Event of Termination or an event which, with notice or
lapse of time or both would constitute an Event of Termination, a
statement of an appropriate officer of the Performance Guarantor setting
forth the relevant details and any action which it has taken or is
proposing to take in respect thereof; and(iii)
    
    promptly, from time to time, furnish to the Trust
such documents, records, information or reports in respect of the
Portfolio of Assets as may be in existence in written form, or, if
available in databases maintained by the Performance Guarantor, as may be
produced with existing software, as the Trust may from time to time
reasonably request.
 Section 4.5       Representations and Warranties of the Trust.
 (1)
    
    The Trust represents and warrants to the Seller, the Servicer and the Performance Guarantor
that, as at the Closing Date:
 (a)
    
    the Trust has been duly established as a trust pursuant to the laws of the
Province of Ontario;(b)
    
    the Trust has all necessary power to enter into and perform its obligations
under this Agreement and the Transaction Documents delivered by or on behalf of it
hereunder;(c)
    
    the execution, delivery and performance by it or by the Financial Services
Agent on its behalf, as applicable, of this Agreement and the Transaction Documents
delivered by or on behalf of it hereunder and the consummation of the transactions
contemplated hereby have been duly authorized by all necessary action on the part of
the Trust;(d)
    
    the Trust is not a non-resident of Canada within the meaning of the Income Tax
Act;(e)
    
    each of this Agreement, the Master Lease, the Back-Up Servicer Agreement and
the Swap Agreement has been duly executed and delivered by it or by the Financial
Services Agent on its behalf, as applicable, and constitutes a legally binding
obligation of the Trust enforceable against it in accordance with its terms, subject to
applicable bankruptcy, reorganization, insolvency, moratorium or other similar laws
affecting creditors rights generally and to equitable principles of




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- 38 - general application (regardless of whether enforcement is sought in a proceeding at
law or in equity); and(f)
    
    the execution and delivery by it or by the Financial Services Agent on its
behalf, as applicable, of this Agreement or any of the Transaction Documents delivered
by or on behalf of it hereunder and compliance with their respective terms and
conditions will not (i) result in a violation of its declaration of trust or any
applicable law, rule, regulation, order, judgment, injunction, award or decree;
(ii) result in a breach of, or constitute a default under, any loan agreement,
indenture, trust deed or any other agreement or instrument to which the Trust is a
party or by which it is bound; or (iii) require any approval or consent of, or any
notice to or filing with, any Governmental Authority having jurisdiction except such as
has already been given, filed or obtained, as the case may be.
 (2)
    
    The representations and warranties set forth in Section 4.5(1) will survive the Closing Date
and remain in full force and effect for the benefit of the Seller and the Performance
Guarantor.
 ARTICLE 5
SERVICING OF PORTFOLIO
 Section 5.1       Appointment of Servicer.
  Section 5.2       Servicing of Portfolio.
 (1)
    
    During the term of this Agreement, the initial Servicer will (so long as it is Servicer)
service the Portfolio of Assets in accordance with the Credit and Collection Policy and
subject to and in accordance with the provisions of this Article 5, and, without limiting the
generality of the foregoing, will:
 (a)
    
    perform its duties with reasonable care and diligence, using that degree of
skill and attention that the Servicer exercises in managing, servicing, administering,
collecting on and performing similar functions relating to comparable Leases that it
services for itself and others;(b)
    
    administer the Securitized Leases on behalf of the Trust in accordance with the
Credit and Collection Policy;




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- 39 - (c)
    
    in accordance with the Credit and Collection Policy, take or cause to be taken
all such reasonable actions as may be necessary or desirable from time to time to
collect all amounts payable under the Securitized Leases in accordance with the terms
thereof;(d)
    
    deposit all Collections in respect of the Securitized Leases and Securitized
Equipment to the Collections Account as required by the balance of this Section 5.2,
regardless of any defence, set-off right, deduction or counterclaim;(e)
    
    remarket repossessed and returned Securitized Equipment in accordance with the
Credit and Collection Policy or in such other manner as it determines, in its sole
discretion acting reasonably, will maximize the Net Proceeds from such Leased
Equipment, and care for all Securitized Equipment in its possession in the same manner
as a prudent lessor thereof having a view to maximizing the proceeds of disposition
thereof would care for similar equipment owned by it;(f)
    
    at least two Business Days prior to each Distribution Date, deliver or cause to
be delivered to the Trust and to the Rating Agencies a Portfolio Report relating to the
Securitized Leases and Securitized Equipment and the relevant Reporting Period, such
report to be current as of the close of business on the last day of such Reporting
Period, and on or before such Distribution Date cause a copy of that Portfolio Report
(redacted as appropriate for confidential information) to be posted on SEDAR or on such
other website as the Servicer may notify to the Trust and the Rating Agencies which is
acceptable to the Indenture Trustee and on any additional websites as determined by the
initial Servicer in its discretion, acting reasonably;(g)
    
    take such steps in accordance with the Credit and Collection Policy as are
necessary to maintain the perfection and priority of the Sellers Security Interests in
the Securitized Equipment created pursuant to the Securitized Leases and to refrain
from releasing any such Security Interests in whole or in part except in accordance
with the Credit and Collection Policy or as may be expressly permitted herein or in the
Trust Indenture; provided that neither the Seller nor the Servicer shall be required to
amend any registrations or make new registrations against any Obligors to reflect any
of the transactions contemplated herein or in the LP Transfer Agreements, unless such
amendments or new registrations are required under Applicable Law in order to ensure
the continued perfection of the Trusts interest in the Securitized Leases and Lease
Rights and the Securitization Security Interests;(h)
    
    determine the advisability of taking action and instituting and carrying out
legal proceedings with respect to any Securitized Leases in case of default by the
Obligor under such Securitized Leases and take such action, institute and carry out
such legal proceedings determined by it to be advisable or required under the Credit
and Collection Policy;




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##### 



- 40 - (i)
    
    maintain current and complete Records with respect to the Securitized Leases
and Securitized Equipment and grant representatives of the Trust and the Indenture
Trustee reasonable access on reasonable notice to examine and make copies of the
Records and a reasonable opportunity to discuss matters relating to the administration
and servicing of the Securitized Leases and Securitized Equipment with personnel of the
Servicer involved in such administration and servicing during business hours, including
the opportunity to see and review information systems and software in operation;(j)
    
    hold as trust property for and on behalf of the Trust, free of any Security
Interest, all Records with respect to the Securitized Leases and Securitized Equipment
at any one or more of the offices identified in writing to the Trust;(k)
    
    settle, compromise and otherwise deal with any claims under the Securitized
Leases if necessary, advisable or otherwise permitted in accordance with the Credit and
Collection Policy;(l)
    
    (i) not make any material change to the Credit and Collection Policy without
either (A) satisfying the Rating Agency Condition in respect of DBRS and giving 10 days
notice to Moodys, or (B) approval by the holders of the Notes as expressed by
Extraordinary Resolution; provided that not less than 10 Business Days notice shall be
provided to the Rating Agencies of such approval before any such material change is
made, and (ii) not apply different credit, collection and administration policies and
procedures to the Securitized Leases and Securitized Equipment than it applies with
respect to Leases and Leased Equipment owned or otherwise serviced by it; provided
that, for greater certainty, the Servicer may make such other changes to the Credit and
Collection Policy that are not prohibited under this paragraph (l) as it considers
necessary or advisable from time to time;(m)
    
    other than in accordance with the Credit and Collection Policy or Section 5.4,
not extend, amend, grant rebates or adjustments or otherwise modify the terms of any
Securitized Lease, except that the Servicer will be permitted, in its discretion, to
waive any prepayment charge, late payment charge or any other fees that may be
collected in the ordinary course of servicing any Securitized Lease, and will be
permitted to consent on behalf of the Trust to an assignment by an Obligor of one or
more Securitized Leases so long as the assignee is approved in accordance with the
Credit and Collection Policy and agrees to assume the obligations of the previous
Obligor under such Securitized Leases;(n)
    
    to the extent the Records for the Securitized Leases consist in whole or in
part of computer programs which are licensed by the Servicer, to forthwith upon the
occurrence of a Servicer Default, use reasonable commercial efforts to arrange for the
licence or sublicence of such programs to the Trust for the limited purpose of
permitting the Trust or any Replacement Servicer to administer and collect the
Securitized Leases;




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- 41 - (o)
    
    at all times retain in its possession in Canada any chattel paper related to
the Securitized Leases;(p)
    
    on a timely basis (i) remit or loan funds to the Trust to make all payments of
federal or provincial taxes owing with respect to Collections and not provided for out
of Collections that may result in a statutory lien or deemed trust that may rank ahead
of the interest of the Trust in the Lease Rights or Securitized Equipment or the
Security Interest granted to the Indenture Trustee; provided that the Servicer may
protest the payment of any such amounts if it is acting in good faith and it either
provides the Trust with cash in an amount sufficient to satisfy the same or otherwise
satisfies the Trust that its interests are not prejudiced thereby; and (ii) provide
appropriate information to the Trust to prepare and file all returns and reports
required to be filed by it in respect thereof;(q)
    
    pay from its own funds all general administrative expenses and other costs
incurred by the Servicer in carrying out its obligations and all fees and expenses of
any subcontractor retained by it;(r)
    
    provide to the Financial Services Agent and the Indenture Trustee its unaudited
financial statements together with audited financial statements of the Performance
Guarantor within 120 days of each fiscal year end and its unaudited quarterly financial
statements (and those of the Performance Guarantor) within 60 days of each fiscal
quarter end;(s)
    
    maintain and implement administrative and operating procedures (including an
ability to recreate all material information contained in the Records for the
Securitized Leases in the event of the destruction of the originals of such Records) to
keep and maintain all such Records and other information reasonably necessary or
advisable to enable the Servicer to produce the information required to be provided in
each Portfolio Report or as may be reasonably necessary or advisable for the
enforcement of all Securitized Leases and for the remarketing of all Securitized
Equipment;(t)
    
    take all steps reasonably necessary, or in the opinion of the Trust or its
counsel, advisable, (i) to validate, protect or perfect the ownership interest of the
Trust in the Securitized Leases and related Lease Rights and the leasehold interest of
the Trust in the Securitized Equipment, and (ii) to defeat the assertion by any third
party (other than a third party claiming through or under the Trust) of any Security
Interest in the Securitized Leases, related Lease Rights or Securitized Equipment;(u)
    
    as soon as possible and in any event within 2 Business Days after the Servicer
becomes aware of the occurrence of an Event of Termination, furnish the Trust and the
Rating Agencies with a notice from the Servicer setting forth the relevant details and
any action which it has taken or is proposing to take in respect thereof;




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- 42 - (v)
    
    except as otherwise permitted by the Transaction Documents, not take any action
that may cause the validity or enforceability of any Securitized Lease to be impaired
or that may adversely affect the perfection, validity or protection of the Trusts
right to collect the related Lease Rights and Net Proceeds;(w)
    
    preserve and maintain its existence, rights, franchises and privileges and
qualify and remain qualified to carry on business in each jurisdiction in which the
failure to do so would have a Material Adverse Effect;(x)
    
    promptly provide the Trust with notice of any change to its name or any
locations where Records with respect to the Securitized Leases are maintained;(y)
    
    comply in all respects with all Applicable Laws (including privacy laws)
relating to the Servicer, the Securitized Leases and the Securitized Equipment, except
where the failure to do so would not have a Material Adverse Effect;(z)
    
    not sell, assign (by operation of law or otherwise) or dispose of any part of
the Securitized Leases and the related Leased Rights or create or suffer to exist any
Security Interest upon or with respect to the Securitized Leases and the related Leased
Rights except as expressly permitted in the Transaction Documents;(aa)
    
    permit the Trust or the Indenture Trustee from time to time, during normal
business hours and on two Business Days prior written notice, to inspect, audit, check
and make abstracts from the Records or any other books, accounts, records or other
papers of the Servicer pertaining to the Securitized Leases and the Securitized
Equipment;(bb)
    
    direct and require its auditors to assist the Trusts auditors to the extent
and in such manner as is reasonably required for the Trusts auditors to report on the
status of each Securitized Lease and the related Lease Rights; and(cc)
    
    from time to time at its expense, promptly execute and deliver all instruments
and documents and make or cause to be made all filings, recordings, registrations and
take all other actions in each jurisdiction necessary to validate, preserve, perfect or
protect the interest of the Trust in the Securitized Leases and related Lease Rights;
provided that neither the Seller nor the Servicer shall be required to amend any
registrations or make new registrations against any Obligors to reflect any of the
transactions contemplated herein or in the LP Transfer Agreement, unless such
amendments or new registrations are required under Applicable Law in order to ensure
the continued perfection of the Trusts interest in the Securitized Leases and Lease
Rights and the Securitization Security Interests.




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- 43 - 
 (2)
    
    Following the appointment of a Replacement Servicer, such Replacement Servicer (so long as it
is Servicer) will service the Portfolio of Assets in accordance with the Credit and Collection
Policy and subject to and in accordance with the provisions of this Article 5, and, without
limiting the generality of the foregoing, will:
 (a)
    
    perform its duties with reasonable care and diligence, using that degree of
skill and attention that the Replacement Servicer exercises in managing, servicing,
administering, collecting on and performing similar functions relating to comparable
Leases that it services for itself and others;(b)
    
    administer the Securitized Leases on behalf of the Trust in accordance with the
Credit and Collection Policy;(c)
    
    in accordance with the Credit and Collection Policy, take or cause to be taken
all such reasonable actions as may be necessary or desirable from time to time to
collect all amounts payable under the Securitized Leases in accordance with the terms
thereof;(d)
    
    deposit all Collections in respect of the Securitized Leases and Securitized
Equipment to the Collections Account as required by the balance of this Section 5.2,
regardless of any defence, set-off right, deduction or counterclaim;(e)
    
    remarket repossessed and returned Securitized Equipment in accordance with the
Credit and Collection Policy or in such other manner as it determines, in its sole
discretion acting reasonably, will maximize the Net Proceeds from such Leased
Equipment, and care for all Securitized Equipment in its possession in the same manner
as a prudent lessor thereof having a view to maximizing the proceeds of disposition
thereof would care for similar equipment owned by it;(f)
    
    at least two Business Days prior to each Distribution Date, deliver or cause to
be delivered to the Trust and to the Rating Agencies a Portfolio Report relating to the
Securitized Leases and Securitized Equipment and the relevant Reporting Period, such
report to be current (except to the extent that any Records provided to the Replacement
Servicer were not current or complete and cannot be corrected using commercially
reasonable efforts) as of the close of business on the last day of such Reporting
Period, and on or before such Distribution Date cause a copy of that Portfolio Report
(redacted as appropriate for confidential information) to be posted on SEDAR or on such
other website as the Replacement Servicer may notify to the Trust and the Rating
Agencies which is acceptable to the Indenture Trustee; the Trust shall reimburse the
Replacement Servicer in accordance with Section 6.1 for its reasonable out-of-pocket
costs and expenses incurred in connection with using its commercially reasonable
efforts to correct incorrect or incomplete Records as described in this paragraph (f);(g)
    
    take such steps in accordance with the Credit and Collection Policy as are
necessary to maintain the perfection of the Sellers Security Interests in the




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- 44 - Securitized Equipment created pursuant to the Securitized Leases and to refrain from
releasing any such Security Interests in whole or in part except in accordance with
the Credit and Collection Policy or as may be expressly permitted herein or in the
Trust Indenture; provided that the Replacement Servicer shall not be required,
whether under this paragraph (g) or otherwise, to amend any registrations or make
new registrations against any Obligors to reflect any of the transactions
contemplated herein or in the LP Transfer Agreements (unless such amendments or new
registrations are required under Applicable Law in order to ensure the continued
perfection of the Sellers Security Interests in the Securitized Equipment created
pursuant to the Securitized Leases), but for greater certainty, shall have no
liability hereunder for any lack or loss of the perfection of the Sellers Security
Interests in the Securitized Equipment as at the time that the Replacement Servicer
was appointed or resulting from acts or omissions of the initial Servicer, any prior
Replacement Servicer or any other Person (other than itself, any Substitute Servicer
or any delegatee, agent, or subcontractor of either) (i) of which it is not aware,
or (ii) which cannot be corrected using commercially reasonable efforts; the Trust
shall reimburse the Replacement Servicer in accordance with Section 6.1 for its
reasonable out-of-pocket costs and expenses incurred in connection with performing
the duties described in this paragraph (g);(h)
    
    determine the advisability of taking action and instituting and carrying out
legal proceedings with respect to any Securitized Leases in case of default by the
Obligor under such Securitized Leases and, to the extent permitted under Applicable
Law, take such action and institute and carry out such legal proceedings determined by
it to be advisable or required under the Credit and Collection Policy, provided that
the Trust shall reasonably cooperate with the Replacement Servicer in connection with
any such proceedings; the Trust shall reimburse the Replacement Servicer in accordance
with Section 6.1 for its reasonable out-of-pocket costs and expenses incurred in
connection with performing the duties described in this paragraph (h);(i)
    
    maintain current and complete Records with respect to the Securitized Leases
and Securitized Equipment (except to the extent that the Records provided to the
Replacement Servicer were not current or complete and cannot be corrected using
commercially reasonable efforts) and grant representatives of the Trust and the
Indenture Trustee reasonable access on reasonable notice (as provided in clause (aa))
to examine and make copies of the Records it maintains and a reasonable opportunity to
discuss matters relating to the administration and servicing of the Securitized Leases
and Securitized Equipment with personnel of the Replacement Servicer involved in such
administration and servicing during business hours, including the opportunity to see
and review information systems and software in operation; the Trust shall reimburse the
Replacement Servicer in accordance with Section 6.1 for its reasonable out-of-pocket
costs and expenses incurred in connection with using its commercially reasonable
efforts to correct incorrect or incomplete Records as described in this paragraph (i);




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- 45 - (j)
    
    hold as trust property for and on behalf of the Trust, free of any Security
Interest created by the Replacement Servicer, all Records owned by the Trust and in the
Replacement Servicers possession with respect to the Securitized Leases and
Securitized Equipment at any one or more of the offices identified in writing to the
Trust;(k)
    
    settle, compromise and otherwise deal with any claims under the Securitized
Leases if necessary, advisable or otherwise permitted in accordance with the Credit and
Collection Policy;(l)
    
    (i) not make any material change to its Credit and Collection Policy as
applicable to the Lease Rights or the Securitized Equipment without either
(A) satisfying the Rating Agency Condition in respect of DBRS and giving 10 days notice
to Moodys, or (B) approval by the holders of the Notes as expressed by Extraordinary
Resolution; provided that not less than 10 Business Days notice shall be provided to
the Rating Agencies of such approval before any such material change is made, and
(ii) not apply different credit, collection and administration policies and procedures
to the Securitized Leases and Securitized Equipment than it applies with respect to
Leases and Leased Equipment owned or otherwise serviced by it; provided that, for
greater certainty, the Replacement Servicer may make such other changes to the Credit
and Collection Policy that are not prohibited under this paragraph (l) as it considers
necessary or advisable from time to time;(m)
    
    other than in accordance with the Credit and Collection Policy or Section 5.4,
not extend, amend, grant rebates or adjustments or otherwise modify the terms of any
Securitized Lease, except that the Replacement Servicer will be permitted, in its
discretion, to waive any prepayment charge, late payment charge or any other fees that
may be collected in the ordinary course of servicing any Securitized Lease, and will be
permitted to consent on behalf of the Trust to an assignment by an Obligor of one or
more Securitized Leases so long as the assignee is approved in accordance with the
Credit and Collection Policy and agrees to assume the obligations of the previous
Obligor under such Securitized Leases;(n)
    
    to the extent the Records for the Securitized Leases consist in whole or in
part of computer programs which are licensed by the Replacement Servicer, to forthwith
upon the occurrence of a Servicer Default, use reasonable commercial efforts, without
the requirement to incur any cost or expense, to arrange for the licence or sublicence
of such programs to the Trust for the limited purpose of permitting the Trust or any
Replacement Servicer to administer and collect the Securitized Leases;(o)
    
    at all times retain in its possession in Canada any chattel paper related to
the Securitized Leases and delivered to it in Canada;




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- 46 - (p)
    
    on a timely basis, following request by the Trust, provide the Trust with
appropriate information specified in such request and available from the Records
maintained by the Replacement Servicer without material effort to assist the Trust to
prepare and file all returns and reports required to be filed by it in respect of
federal or provincial taxes owing with respect to Collections;(q)
    
    pay from its own funds all general administrative expenses and, except as
otherwise provided herein, other costs incurred by the Replacement Servicer in carrying
out its obligations and all fees and expenses of any subcontractor retained by it;(r)
    
    provide to the Financial Services Agent and the Indenture Trustee its audited
financial statements within 120 days of each fiscal year end and its unaudited
quarterly financial statements within 60 days of each fiscal quarter end;(s)
    
    maintain and implement administrative and operating procedures (including an
ability to recreate all material information contained in the Records maintained by it
for the Securitized Leases in the event of the destruction of the originals of such
Records) to keep and maintain all such Records and other information reasonably
necessary or advisable to enable the Replacement Servicer to produce the information
required to be provided in each Portfolio Report or as may be reasonably necessary or
advisable for the enforcement of all Securitized Leases and for the remarketing of all
Securitized Equipment, except to the extent that any Records provided to the
Replacement Servicer were not current or complete and cannot be corrected using
commercially reasonable efforts; the Trust shall reimburse the Replacement Servicer in
accordance with Section 6.1 for its reasonable out-of-pocket costs and expenses
incurred in connection with using its commercially reasonable efforts to correct
incorrect or incomplete Records as described in this paragraph (s);(t)
    
    take all steps reasonably necessary, or in the opinion of the Trust or its
counsel, advisable, (i) to perfect (or for purposes of Quebec, make opposable) the
ownership interest of the Trust in the Securitized Leases and related Lease Rights and
the leasehold interest of the Trust in the Securitized Equipment, and (ii) to defend
against the assertion by any third party (other than a third party claiming through or
under the Trust) of any Security Interest (other than a Permitted Lien) in the
Securitized Leases, related Lease Rights or Securitized Equipment; provided that the
Replacement Servicer shall have no liability hereunder (x) for any lack or loss of the
perfection (or for purposes of Quebec, for any lack or loss of the status of being
opposable) of any such ownership or leasehold interest as at the time the Replacement
Servicer was appointed or resulting from acts or omissions of the initial Servicer, any
prior Replacement Servicer or any other Person (other than itself, any Substitute
Servicer or any agent of either) or any other circumstances in effect as at the time
the Replacement Servicer was appointed or (y) for failing to defend any such assertion
of any such Security Interest that was in existence as at the time the Replacement
Servicer was




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##### 



- 47 - appointed or resulting from acts or omissions of the initial Servicer, any prior
Replacement Servicer or any other Person (other than itself, any Substitute Servicer
or any agent of either) and, in the case of (x) or (y), (A) of which it is not aware
or (B) which cannot be corrected or defended against using commercially reasonable
efforts; the Trust shall reimburse the Replacement Servicer in accordance with
Section 6.1 for its reasonable out of pocket costs and expenses incurred in
connection with taking any such commercially reasonable efforts or defending the
assertion of any Security Interest referred to in this paragraph (t);(u)
    
    as soon as possible and in any event within 2 Business Days after the
Replacement Servicer becomes aware of the occurrence of an Event of Termination
described in any of Sections 7.1(a), (e), (f), (g), (i) or (k), furnish the Trust and
the Rating Agencies with a notice from the Replacement Servicer setting forth the
relevant details and any action which it has taken or is proposing to take in respect
thereof; provided that this clause (u) will not apply to any such Event of Termination
that was the subject of a prior notice pursuant to this clause (u) or pursuant to
Section 5.2(1)(u);(v)
    
    except as otherwise permitted by the Transaction Documents or the Credit and
Collection Policy, not take any action that may cause the validity or enforceability of
any Securitized Lease to be impaired or that may adversely affect the perfection,
validity or protection of the Trusts right to collect the related Lease Rights and Net
Proceeds;(w)
    
    preserve and maintain its existence, rights, franchises and privileges, and
qualify and remain qualified to carry on business, in each jurisdiction in which the
failure to do so would reasonably be expected to have a Material Adverse Effect;(x)
    
    promptly provide the Trust with notice of any change to its name or any
locations where Records with respect to the Securitized Leases are maintained by it;(y)
    
    comply in all respects with all Applicable Laws (including privacy laws)
relating to the Replacement Servicer, the Securitized Leases and the Securitized
Equipment, except where the failure to do so would not have a Material Adverse Effect
or results from the acts or omission of the Trust, the initial Servicer or the Seller;(z)
    
    not sell, assign (by operation of law or otherwise) or dispose of any part of
the Securitized Leases and the related Leased Rights or create any Security Interest
upon or with respect to the Securitized Leases and the related Leased Rights except as
expressly permitted in the Transaction Documents;(aa)
    
    permit the Trust or the Indenture Trustee from time to time, during normal
business hours and on two Business Days prior written notice, to inspect, audit, check
and make abstracts from the Records maintained by the Replacement




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- 48 - Servicer or any other books, accounts, records or other papers of the Replacement
Servicer pertaining to the Securitized Leases and the Securitized Equipment; and(bb)
    
    assist the Trusts auditors to the extent and in such manner as is reasonably
requested for the Trusts auditors to report on the status of each Securitized Lease
and the related Lease Rights.
 (3)
    
    So long as (i) no Servicer Default exists, and (ii) the Performance Guarantor has an
unsecured debt rating of at least A+(long term) by S&P or A1 (short term) by S&P, and Aa3
(long term) by Moodys or P-1 (short term) by Moodys, then the initial Servicer may deposit
Collections in respect of each Reporting Period to the Collections Account on a monthly basis
on or prior to the applicable Distribution Date.
 (4)
    
    So long as (i) no Servicer Default exists, and (ii) the Performance Guarantor has an
unsecured debt rating from each of the two Rating Agencies of less than the ratings set out in
paragraph (2) above but has a long-term unsecured debt rating of at least BB- by Fitch, Ba3 by
Moodys and BB- by S&P from at least two of such rating agencies, then the Servicer will
deposit all Collections to the Collections Account on or before the second Business Day
following the day such Collections are received by the Servicer. For purposes of this
Agreement, Collections will not be considered received if they have been sent in error or,
in any event, until the Servicer is provided information reasonably sufficient to identify the
payor of the funds in question. Any Replacement Servicer shall also deposit all Collections to
the Collections Account on or before the second Business Day following the day such
Collections are received by the Replacement Servicer.
 (5)
    
    Upon the occurrence and during the continuance of a Servicer Default or so long as the
Performance Guarantor fails to maintain at least the following long-term unsecured debt
ratings from at least two of the following rating agencies: BB- by Fitch, Ba3 by Moodys and
BB- by S&P, or if the Performance Guarantor does not have a credit rating from at least two of
such rating agencies, then the Servicer (but not a Replacement Servicer) must deposit (by way
of a loan to the Trust (a Servicers Pre-Funded Amount Loan)) the Servicers Pre-Funded
Amount for the Purchased Assets with respect to each Reporting Period commencing thereafter
and for so long as such condition continues to exist, to the Collections Account on or before
the second Business Day following the end of the prior Reporting Period. Such loan shall not
bear interest and shall be repayable as provided herein. The Servicer shall be entitled to
retain, in repayment of Servicers Pre-Funded Amount Loans it has made to the Trust, any
Collections received in a Reporting Period up to the amount of any such loans which are
outstanding. The Servicer will deposit all additional Collections to the Collections Account
on or before the second Business Day following the day such Collections are received by the
Servicer.
 (6)
    
    In addition, the Seller shall deposit to the Collections Account on the Distribution Date in
respect of each Reporting Period, an amount equal to the sum of any amounts payable to the
Trust during such Reporting Period pursuant to Section 5.10(2) or Section 9.7.




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- 49 - 
 (7)
    
    Interest earned on any Collections from the time of their receipt by the Servicer until
deposit in the Collections Account as required hereunder shall be for the account of the
Servicer.
 (8)
    
    Notwithstanding the foregoing, the Trust, rather than the Servicer, shall be responsible for
depositing into the Collections Account or U.S. Dollar Collections Account, as applicable, any
amounts received under the Swap Agreement, and such amounts, to the extent in U.S. Dollars,
shall be deposited by the Trust to the U.S. Dollar Collections Account.
 (9)
    
    For greater certainty, and without limiting the foregoing, Collections (including Net
Proceeds in respect of the Leased Equipment described in Schedule E) received by the Servicer
during the period from the Cut-Off Date until the Closing Date are deemed to have been
received on behalf of the Trust on the Closing Date, shall be deposited to the Collections
Account in accordance with Section 5.2(4) and upon deposit of such Collections to the
Collections Account, the amount so deposited shall constitute a refund of the Master Lease
Prepayment Amount in respect of the related Leases. Any Net Proceeds deposited into the
Collections Account shall constitute a refund of the Master Lease Prepayment Amount in respect
of the related Leased Equipment.
 (10)
    
    In consideration for the services to be performed by the Servicer hereunder, the Trust shall
pay to the Servicer, in accordance with Section 6.1(2) (or in the case of a Replacement
Servicer, Section 6.1(1)), the Servicer Fee or, as applicable, the Replacement Servicer Fee,
plus all applicable taxes thereon.
 Section 5.3       Power of Attorney.
 (1)
    
    The Seller and Servicer each hereby grant to the Trust a power of attorney, with full power
of substitution, to become effective immediately upon the occurrence (but only so long as it
has not been waived, or otherwise cured to the satisfaction of the Trust) of a Servicer
Default, to take such actions in the place of and in the name of the Seller or Servicer, as
the case may be, or in the attorneys own name, as the Trust, at the direction of the
Indenture Trustee or otherwise, may deem necessary or advisable to collect, endorse, negotiate
or otherwise realize on any Securitized Lease, the related Securitized Equipment, any related
negotiable instrument or other related right of any kind, including transferring legal title
to the Securitized Equipment to the Seller (to the extent not already in the Seller) and
registering such transfer to the extent required under Section 5.8(2)(h).
 (2)
    
    The Trust hereby constitutes and appoints the Servicer the true and lawful attorney of the
Trust, with full power of substitution, to execute, deliver and register, for and on behalf of
and in the name of the Trust, such documents, instruments or agreements which may be necessary
or desirable to enable the Servicer to perform its obligations set out in this Agreement. The
Servicer agrees that it will not exercise such power of attorney for any other purpose
whatsoever. The Trust shall execute such other documents as may be reasonably required by any
Replacement Servicer in order to provide such Replacement Servicer with a power of attorney to
similar effect.




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- 50 - 
 (3)
    
    The powers of attorney granted hereby shall be coupled with an interest. The powers of
attorney and other rights and privileges granted hereby shall survive any dissolution,
liquidation or winding-up of the Seller, the Servicer or the Trust, as applicable.
 Section 5.4       Deemed Collections.
 (1)
    
    If, at any time after the Cut-Off Date, any Securitized Lease (i) is extended by the Seller
or the initial Servicer beyond its original Term (other than any extension of the Term of a
Securitized Lease which does not involve any reduction in the scheduled payments thereunder),
(ii) has its Annual Percentage Rate, total number of scheduled payments or its aggregate
amount payable reduced by the Seller or the initial Servicer (other than the conversion of the
Annual Percentage Rate in respect of a Lease from one based on a floating rate of interest to
one based on a fixed rate in accordance with the terms of the Lease), (iii) has the Security
Interest created under such Lease in the Securitized Equipment impaired or released as a
result of an action by the Seller or the initial Servicer that is not permitted under the
Transaction Documents, (iv) is reduced or cancelled as a result of any breach by the Seller or
the initial Servicer of the terms of the Lease or as a result of the exercise of any right of
set-off by the Obligor against the Seller or the initial Servicer, or (v) has the amounts due
from the Obligor upon the termination thereof reduced by the Seller or the initial Servicer
(except that the Servicer may reduce the amount payable by the Obligor under its Obligor
Option to the extent that the Servicer has determined, in its discretion, that the reduction
of such purchase price is reasonably likely to maximize the Net Proceeds in connection with
the sale or other liquidation of the related Securitized Equipment), the Seller will be deemed
to have received for the account of the Trust a Collection in respect of such Securitized
Lease (a Deemed Collection) equal to the related Net Book Value thereof at such time (or, at
the option of the Seller (A) in the case of (ii) above, the amount of the payment reductions
resulting from the actions of the Seller or initial Servicer, or (B) in the case of any
reduction described in (iv) or (v) above, the amount of any such reduction) together with all
accrued and unpaid interest thereon under the terms of such Lease and other accrued and unpaid
amounts arising thereunder, whereupon (except if the Seller has elected to make the payment
described in (A) or (B) above) the Trust will be deemed to have sold, without the necessity of
any further instrument or formality, the rights of the Trust under the Master Lease in respect
of the related Securitized Equipment, together with the related Lease Rights to the Seller
free and clear of all Security Interests arising through the Trust but otherwise on an as is,
where is basis without recourse to, or representation or warranty of, the Trust.
 (2)
    
    The Seller shall promptly (and in any event, prior to the next Distribution Date) deposit the
amount of any Deemed Collection to the Collections Account and such amount shall constitute a
refund of the Master Lease Prepayment Amount in respect of the related Lease.




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- 51 - 
 Section 5.5       Servicer Advances.
 Servicer Advance
 Section 5.6       Back-Up Servicer.
 (1)
    
    The Servicer will co-operate with the Back-Up Servicer to the extent necessary for the
Back-Up Servicer to assume its duties and to facilitate the ability of the Back-Up Servicer to
be prepared to become a Replacement Servicer, including delivering to the Back-Up Servicer on
a monthly basis copies of all Records necessary for the Back-Up Servicer to perform these
functions and providing all reasonable assistance to the Back-Up Servicer necessary for it to
decipher the information contained in electronic form.
 (2)
    
    Except as otherwise expressly stated in the Back-Up Servicer Agreement, the Seller and the
Servicer will not be responsible for payment of the fees and expenses (including Back-Up
Servicer Costs) of the Back-Up Servicer. Except as so stated, such fees and expenses will be
payable out of Collections in accordance with Section 6.1.
 Section 5.7       Servicer Indemnity.
 (1)
    
    The initial Servicer will indemnify the Trust and its agents and save them harmless from and
against any and all Losses arising out of or as a result of:
 (a)
    
    the failure of the initial Servicer to comply with any Applicable Law in
respect of, or with any of the initial Servicers obligations under, any Securitized
Leases or to perform its obligations under any of the Transaction Documents;(b)
    
    the failure of the initial Servicer to perform its duties, obligations or
covenants, or the breach by the initial Servicer of any its representations or
warranties, set out in any of the Transaction Documents or in any report or other
document furnished by it pursuant to the Transaction Documents;




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- 52 - (c)
    
    the co-mingling of Collections by the initial Servicer with cash not arising
from the transactions contemplated in the Transaction Documents; or(d)
    
    the disclosure of any personal information relating to any Obligor by the
initial Servicer,
 except, in each case, to the extent that such Losses arise out of or as a result of (i) the
gross negligence, wilful misconduct, misfeasance or bad faith of the Trust or any of its
agents, or (ii) as a direct result of the negligence, wilful misconduct, misfeasance or bad
faith of the Financial Services Agent, the Financial Services Sub-Agent or any Replacement
Servicer, which, in the case of either (i) or (ii) above, is not the Seller or any Affiliate
of the Seller, or any of their agents.
 (2)
    
    The Replacement Servicer will indemnify the Trust and its agents and save them harmless from
and against any and all Losses arising out of or as a result of:
 (a)
    
    the failure of the Replacement Servicer to comply with any Applicable Law in
respect of any Securitized Leases or to perform its obligations under any of the
Transaction Documents;(b)
    
    the failure of the Replacement Servicer to perform its duties, obligations or
covenants, or the breach by the Replacement Servicer of any its representations or
warranties, set out in any of the Transaction Documents or in any report or other
document furnished by it pursuant to the Transaction Documents;(c)
    
    the co-mingling of Collections by the Replacement Servicer with cash not
arising from the transactions contemplated in the Transaction Documents; or(d)
    
    the disclosure of any personal information relating to any Obligor by the
Replacement Servicer,
 except, in each case, to the extent that such Losses arise out of or as a result of (i) the
gross negligence, wilful misconduct, misfeasance or bad faith of the Trust, the Seller, the
Financial Services Agent, the Financial Services Sub-Agent or any other Servicer or any of
their agents, or (ii) as a direct result of the acts or omissions of the Trust, the Seller,
the Financial Services Agent, the Financial Services Sub-Agent or any other Servicer, or any
of their agents.
 (3)
    
    The initial Servicer and the Trust each agree to provide reasonable assistance to the other
party, at the request of such other party and, in either case, at the initial Servicers
expense, in any action, suit or proceeding brought by or against, or any investigation
involving such requesting party (including the Financial Services Agent in respect of the
Trust but excluding any actions against each other) relating to any of the transactions
contemplated hereby or to any part of the Portfolio of Assets. If the initial Servicer may be
liable under Section 5.7(1) in respect of any Losses in connection with any such action, suit,
proceeding or investigation, and, in the sole determination of the Trust,




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- 53 - acting reasonably, the initial Servicer or the Performance Guarantor has the financial
ability to pay such Losses, the initial Servicer will have the right, on behalf of the Trust
or the Financial Services Agent but at the initial Servicers expense, to defend such
action, suit or proceeding, or participate in such investigation, with counsel selected by
it, and will have sole discretion as to whether to litigate, appeal or settle.
 (4)
    
    The Replacement Servicer and the Trust each agree to provide reasonable assistance to the
other party, at the request and expense of such other party, in any action, suit or proceeding
brought by or against, or any investigation involving such requesting party (including the
Financial Services Agent in respect of the Trust but excluding any actions against each other)
relating to any of the transactions contemplated hereby or to any part of the Portfolio of
Assets. If the Replacement Servicer may be liable under Section 5.7(2) in respect of any
Losses in connection with any such action, suit, proceeding or investigation, and, in the sole
determination of the Trust, acting reasonably, the Replacement Servicer has the financial
ability to pay such Losses, the Replacement Servicer will have the right, on behalf of the
Trust or the Financial Services Agent but at the Replacement Servicers expense, to defend
such action, suit or proceeding, or participate in such investigation, with counsel selected
by it, and will have sole discretion as to whether to litigate, appeal or settle.
 Section 5.8       Designation of Replacement Servicer.
 (1)
    
    At any time following the occurrence of and during the continuance of a Servicer Default, the
Trust may effect a termination of the Servicers designation as Servicer under the Transaction
Documents by giving notice to the Servicer of its decision to terminate the Servicers
engagement as Servicer, which termination will take effect at the time specified in such
notice or, failing the specification of time, upon the appointment of a Replacement Servicer.
At any time following the occurrence and during the continuance of a Servicer Default, the
Trust may by instrument in writing designate and appoint as the Replacement Servicer any
Person which (i) satisfies the Rating Agency Condition in respect of DBRS and of whom not less
than 10 Business Day notice has been given to Moodys, or (ii) is acceptable to holders of the
Notes as expressed by Extraordinary Resolution; provided that in the event of the approval of
any such Replacement Servicer by Extraordinary Resolution, not less than 10 Business Days
prior notice shall be provided to the Rating Agencies before such Person assumes its role as
Replacement Servicer.
 (2)
    
    Following the appointment by the Trust of a Replacement Servicer, the former Servicer will,
on demand, in addition to any other obligations it has under the Transaction Documents:
 (a)
    
    instruct the Obligor of each Securitized Lease to remit all payments due under
the Securitized Lease to the Replacement Servicer;




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- 54 - (b)
    
    remit to the Replacement Servicer all payments received by the Servicer from
Obligors and from other Persons, if applicable, pursuant to the Securitized Leases
within two Business Days of receipt;(c)
    
    segregate all cash, cheques and other instruments received by it and
constituting Collections of Purchased Assets in a manner acceptable to the Replacement
Servicer and deposit all such cash, cheques and instruments (or the portion thereof
relating to the Purchased Assets), duly endorsed or with duly executed instruments of
transfer, to the Collections Account within two Business Days of receipt;(d)
    
    transfer all signing authority with respect to the Collections Account and U.S.
Dollar Collections Account to the Replacement Servicer;(e)
    
    deliver copies or originals of all Records in its possession to the extent
relating to the Purchased Assets to the Replacement Servicer and provide the
Replacement Servicer with all reasonable assistance necessary to decipher the
information contained in electronic form;(f)
    
    provide access to all software owned by the Servicer and used for monitoring,
collection or administration of Securitized Leases and Securitized Equipment and use
reasonable commercial efforts to obtain any required consents to allow the Replacement
Servicer to use any software used by the Servicer for a similar purpose which is
licensed to the Servicer by a third party;(g)
    
    in the case of the initial Servicer, notify issuers of insurance policies on
the Securitized Equipment of the interest of the Trust in the Securitized Leases
relating to such Leased Equipment; and(h)
    
    in the case of the initial Servicer, take all such action as may be reasonably
requested by the Trust to transfer legal title to the Securitized Equipment to the
Seller and, to the extent required by Applicable Law, register such transfer to the
Seller under Applicable Law.
 Section 5.9       Replacement Servicer Fee.
 Replacement Servicer Fee




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- 55 - Section 5.10 Payment Terms.
 (1)
    
    All amounts to be paid or deposited by the Seller, the Servicer, any Replacement Servicer or
the Trust hereunder will be paid or deposited not later than 11:00 a.m. (Toronto time) on the
day when due in same day funds.
 (2)
    
    The Seller and the Servicer (but not a Replacement Servicer, unless otherwise provided in the
related agreement under which it has become the Replacement Servicer) will pay to the Trust
interest (before and after default and judgment, with interest on overdue interest at the same
rate) on all amounts not paid or deposited when due hereunder at a rate equal to the
Applicable Rate.
 (3)
    
    The Seller and the Servicer (but not a Replacement Servicer, unless otherwise provided in the
related agreement under which it has become the Replacement Servicer) will make all payments
required to be made hereunder without deduction or set-off (except as expressly permitted
hereunder) regardless of any defence or counterclaim.
 (4)
    
    Except as otherwise required by law or as specified by the applicable Obligor, where any
Obligor under a Securitized Lease pays (or has prior to the date hereof paid) at any time
amounts owing by such Obligor under such Securitized Lease or related Lease Rights together
with other amounts it owes to an Originator, the Servicer shall allocate (and for purposes of
determining if such Lease is an Eligible Lease, shall be deemed to have allocated) the amounts
so paid as between amounts owing under such Securitized Lease (or related Lease Rights) and
other Leases and any Fleet Receivables in accordance with Section 2.5 of the Intercreditor
Agreement.
 (5)
    
    In order to comply with the Replacement Servicers obligation to take into account the
provisions of Section 2.5 of the Intercreditor Agreement for the purpose of complying with its
obligations hereunder, including its obligations to deliver Portfolio Reports pursuant to
Section 5.2(2)(f) and to allocate amounts pursuant to Section 5.10(4), the Replacement
Servicer may consult counsel reasonably satisfactory to it and the written advice or opinion
of such counsel as to the provisions of Section 2.5 of the Intercreditor Agreement shall be
full and complete protection from liability in respect of any action taken or omitted by the
Replacement Servicer hereunder in good faith and in accordance with such written advice or
opinion of such counsel. The Trust shall reimburse the Replacement Servicer in accordance
with Section 6.1 for its reasonable out-of-pocket costs and expenses incurred in connection
with consulting such counsel, taking such action as such counsel advises, and/or using the
commercially reasonable efforts contemplated by Section 2.5 of the Intercreditor Agreement.




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- 56 - 
 ARTICLE 6
APPLICATION OF PROCEEDS
 Section 6.1       Application of Proceeds.
 (1)
    
    On each Distribution Date, whether before or after the Final Collection Date but subject to
Section 6.1(10), the Trust will apply all moneys deposited into the Collections Account or the
U.S. Dollar Collections Account pursuant to Sections 2.3, 4.2, 5.2, 5.4, 5.5, and 8.1 of this
Agreement or this Section 6.1, as follows:
 (a)
    
    first, to remit to the Servicer, (i) an amount equal to the amount of any
Servicer Advances made by the Servicer prior to such Distribution Date and then still
outstanding, first out of Collections under the Securitized Leases in respect of which
such Servicer Advances were made, and thereafter from any other Collections, and
(ii) the amount of any Servicers Pre-Funded Amount Loans made by the Servicer to the
Trust for Reporting Periods prior to the Reporting Period then in effect, that have not
then been repaid;(b)
    
    second, in payment to the Replacement Servicer of any Replacement Servicer Fee
(and all applicable taxes) payable hereunder in respect of the immediately preceding
Reporting Period or any prior Reporting Period;(c)
    
    third, to payment on a pari passubasis (A) of the Related Proportionate Share
(as defined in the Trust Indenture) (with respect to Series 2010-1) of (i) any Trust
Expenses, up to a maximum of $150,000 per year; and (ii) taxes or other charges that
may result in a statutory lien or deemed trust that may rank ahead of the Security
Interest granted to the Indenture Trustee in the Purchased Assets; and (B) to the
Back-Up Servicer of the Back-Up Servicer Fee (and all applicable taxes) payable
pursuant to the Back-Up Servicer Agreement in respect of the immediately preceding
Reporting Period, or any prior Reporting Period;(d)
    
    fourth, to pay to the Replacement Servicer, (i) any costs, expenses,
indemnification amounts and other amounts (other than the Replacement Servicer Fee)
(and all applicable taxes) which are due and owing to the Replacement Servicer and
payable by the Trust hereunder or pursuant to the Back-Up Servicer Agreement (or any
Substitute Servicer Agreement (as defined therein)) in respect of the immediately
preceding Reporting Period or any prior Reporting Period, to the extent not previously
paid to the Replacement Servicer, excluding any such expenses incurred in connection
with its activation as Replacement Servicer, up to a maximum of $15,000 per month; and
(ii) its transition costs (as described, and subject to the $175,000 limit contained,
in Schedule 1 to the Back-Up Servicer Agreement) in connection with its activation as
Replacement Servicer and transition to such role hereunder.
 (2)
    
    On each Distribution Date (whether before or after the Final Collection Date) after the
applications in Section 6.1(1), the Trust will apply the balance of each of the Collections




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- 57 - Account (including for greater certainty, any amounts deposited therein under Sections
6.1(4), (5) or (7) hereof) and the U.S. Dollar Collections Account as follows:
 (a)
    
    first,
 (i)
    
    amounts payable to the Swap Counterparty under the
Fixed Amounts payable by Trust provisions of the Swap Agreement in
exchange for U.S. Dollar amounts required to pay interest due and owing in
respect of the Class A-1b Notes on such date, as provided in
Section 6.1(2)(a)(ii)(B);(ii)
    
    on a pari passubasis, in payment of:
 (A)
    
    the amount of interest then due and owing in
respect of the Class A-1a Notes;(B)
    
    the amount of interest then due and owing in
respect of the Class A-1b Notes;(C)
    
    the amount of interest then due and owing in
respect of the Class A-2a Notes; and(D)
    
    the amount of interest then due and owing in
respect of the Class A-2b Notes; and
 (iii)
    
    after payment of all such amounts, but only if no
Event of Termination has occurred and is then continuing, to payment of
the amount of interest then due and owing in respect of the Class B Notes;
 provided that for greater certainty, whenever in this Agreement there is a reference to the
application of amounts on a pari passubasis as between obligations of the Trust in Canadian
Dollars and obligations in U.S. Dollars, the Servicer shall determine the amount to be
applied to each such amount on a pro rata basis based on the percentage amount equal to such
Canadian Dollar amount or, in the case of such U.S. Dollar amount, the Equivalent Amount of
such U.S. Dollar amount, divided by the total of (i) the Canadian Dollar amount plus
(ii) the Equivalent Amount of the U.S. Dollar amount;
 (b)
    
    second,
 (i)
    
    amounts payable to the Swap Counterparty under the
Interim Exchange Amounts provisions of the Swap Agreement in exchange for
U.S. Dollar amounts required to pay principal owing in respect of the
Class A-1b Notes on such date as provided in Section 6.1(2)(b)(ii)(B); and(ii)
    
    on a pari passubasis, in payment of:
 (A)
    
    any amounts owing by the Trust to the Swap
Counterparty under the Swap Agreement in connection with an early
termination of the




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- 58 - Swap Agreement, except where such termination has been caused by an
event of default or a termination event thereunder and the Swap
Counterparty is the defaulting party or sole affected party
thereunder; and(B)
    
    an amount or amounts with an aggregate value
(with amounts denominated and payable in U.S. Dollars being treated for
this purpose as having a value in Canadian Dollars equal to the
Equivalent Amount of such U.S. Dollar amount) equal to the Principal
Distribution Amount (or (x) if an Event of Termination has occurred and
is continuing, (y) the Trust has made the election described in
Section 6.1(12), or (z) the Seller has elected to purchase the
remaining Purchased Assets from the Trust pursuant to Section 7.3 and
has deposited the consideration therefor specified in Section 7.3 to
the Collections Account, to apply the balance of the Collections
Account and the U.S. Dollar Collections Account), as follows:
 (I)
    
    first, in payment on a
pari passubasis of the amount of principal then
outstanding in respect of the Class A-1a Notes and the
Class A-1b Notes;(II)
    
    after payment of all
principal outstanding in respect of the Class A-1a Notes
and the Class A-1b Notes, in payment on a pari passubasis
of the amount of principal then outstanding in respect of
the Class A-2a Notes and the Class A-2b Notes; and(III)
    
    after payment of all
principal outstanding in respect of the Class A-1a Notes,
the Class A-1b Notes, the Class A-2a Notes and the Class
A-2b Notes, in payment of the amount of principal and
interest then outstanding in respect of the Class B Notes,
and
 (c)
    
    third, on a pari passubasis:
 (i)
    
    to the Back-Up Servicer of any Back-Up Servicer Costs
(and all applicable taxes) payable hereunder or pursuant to the Back-Up
Servicer Agreement in respect of the immediately preceding Reporting
Period, or any prior Reporting Period, and(ii)
    
    to the Replacement Servicer (or any former
Replacement Servicer) of any costs, expenses, indemnification amounts and
other amounts (other than the Replacement Servicer Fee) (and all
applicable taxes) which are due and owing to the Replacement Servicer (or
any former Replacement Servicer) and payable by the Trust hereunder or
pursuant to the Back-Up




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- 59 - Servicer Agreement (or any Substitute Servicer Agreement (as defined
therein)) in respect of the immediately preceding Reporting Period or any
prior Reporting Period, to the extent not previously paid to the Replacement
Servicer (or any former Replacement Servicer) and not paid under
Section 6.1(1)(d) above as applicable; and
 (d)
    
    fourth, of the Servicer Fee (and all applicable taxes) payable hereunder in
respect of the immediately preceding Reporting Period.
 (3)
    
    On each Distribution Date (whether before or after the Final Collection Date) after the
applications in Section 6.1(2), the Trust will apply any remaining balance of each of the
Collections Account and the U.S. Dollar Collections Account as follows:
 (a)
    
    first, by depositing to the Cash Spread Account an amount equal to the amount,
if any, by which the Required Cash Spread Amount at such time exceeds the amount then
on deposit in the Cash Spread Account (including investments thereof in Permitted
Investments) (any such amount so deposited, being referred to collectively, as Balance
Amounts);(b)
    
    second, by depositing to the Yield Supplement Account an amount equal to the
amount, if any, by which the Required Yield Supplement Amount at such time exceeds the
amount then on deposit in the Yield Supplement Account (including investments thereof
in Permitted Investments) (any such amount so deposited, also being referred to
collectively, as Balance Amounts);(c)
    
    third, to the extent that any amounts are due from the Seller to the Trust
hereunder on account of expenses of the Trust that then remain unpaid (Seller
Obligations), an amount equal to the remaining amount of such balance shall be payable
by the Trust to the Seller as Deferred Rent for the Purchased Assets, but such Deferred
Rent shall be paid by way of set off against such Seller Obligations; and the Trust
shall apply an amount equal to such set-off Seller Obligations against any such
expenses of the Trust which the Seller was required to have paid;(d)
    
    fourth, in payment of any amounts owing by the Trust to the Swap Counterparty
in connection with an early termination of the Swap Agreement, where such termination
has been caused by an event of default or a termination event thereunder and the Swap
Counterparty is the defaulting party or sole affected party thereunder;(e)
    
    fifth, on a pari passubasis, (i) any amounts then owing by the Trust to the
Financial Services Agent under the Financial Services Agreement in respect of the
immediately preceding Reporting Period, (ii) any amounts then owing by the Trust to the
Financial Services Sub-Agent under the Financial Services Sub-Agency Agreement in
respect of the immediately preceding Reporting Period, and (iii) to payment of the
Related Proportionate Share (as defined in the




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- 60 - Trust Indenture) (with respect to Series 2010-1) of any Trust Expenses not
previously paid in accordance with this Section 6.1, plus in each case, all
applicable taxes;(f)
    
    sixth, to the Trust, the sum of $10,000 (to an aggregate maximum of $10,000 in
each fiscal year of the Trust), on account of the income of the Trust for such fiscal
year, which amount will be distributed by the Trust to the appropriate beneficiary of
the Trust in respect of such fiscal year in accordance with the Declaration of Trust;(g)
    
    seventh, to the Seller on account of all outstanding related Deferred Rent
outstanding under Section 6.1(11) and interest thereon payable to the Seller as
provided in Section 6.1(11);(h)
    
    eighth, (i) in repayment of any loans made to the Trust by the Seller or the
Servicer to enable the Trust to pay amounts owing by the Trust and interest thereon;
and (ii) to any amounts owing to the Seller or the Servicer under Sections 2.3 or 9.6
hereof; and(i)
    
    lastly, as to the balance of the Collections Account and the U.S. Dollar
Collections Account, together with any amounts available for such purpose under
Section 6.1(6) and (7), to the Seller on account of Deferred Rent.
 (4)
    
    On each Distribution Date, the Trust shall withdraw from the Yield Supplement Account and
deposit to the Collections Account an amount equal to the lesser of the amount then on deposit
in the Yield Supplement Account and the Yield Supplement Draw Amount for such date. Such
amount shall be applied by the Trust in accordance therewith. Any interest or other earnings
on the Yield Supplement Account or Permitted Investments thereof, shall be deposited to the
Yield Supplement Account, but subject to Section 6.1(6).
 (5)
    
    The amounts held in the Cash Spread Account will be available to the Trust on each
Distribution Date and deposited to the Collections Account, if and to the extent that the
amount otherwise deposited to the Collections Account and the U.S. Dollar Collections Account
and available for the payments and allocations under this Section 6.1 (including any amounts
deposited therein under Section 6.1(4)) is less than the aggregate of the amounts owing or to
be applied pursuant to Section 6.1(1) and Section 6.1(2) in respect of such Distribution Date
in respect of the Purchased Assets and the Notes, and shall be applied by the Trust in
accordance therewith. Following the occurrence of an Event of Termination, the Trust shall
(and is authorized by the Seller to) withdraw all amounts then on deposit in the Cash Spread
Account and shall deposit such amounts into the Collections Account. Any interest or other
earnings on the Cash Spread Account or Permitted Investments thereof, shall be deposited to
the Cash Spread Account, but subject to Section 6.1(6).




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- 61 - 
 (6)
    
    If on any Distribution Date when there is no continuing Event of Termination, the amount in
the Cash Spread Account, including any interest or other earnings thereon, but determined
after any application on such date of amounts in the Cash Spread Account under Section 6.1(5),
exceeds the Required Cash Spread Amount, the Trust shall release its interest in such excess
amounts and permit the Seller to withdraw such excess from the Cash Spread Account on account
of Deferred Rent. If on any Distribution Date when there is no continuing Event of
Termination, the amount in the Yield Supplement Account, including any interest or other
earnings thereon, but determined after any application on such date of amounts in such Yield
Supplement Account under Section 6.1(4), exceeds the Required Yield Supplement Amount, the
Trust shall release its interest in such excess amounts and permit the Seller to withdraw such
excess from the Yield Supplement Account on account of Deferred Rent.
 (7)
    
    On the Final Collection Date, the Trust shall deposit to the Collections Account the balance,
if any, remaining in the Cash Spread Account and the Yield Supplement Account, and shall apply
the balance in the Collections Account in accordance with this Section 6.1.
 (8)
    
    If the Trust or any Servicer (including any Replacement Servicer) should receive any Excluded
Amounts, or any other amounts that do not constitute Collections or Net Proceeds of Purchased
Assets (other than, in the case of a Servicer, as payment of amounts owing to it under this
Section 6.1 which it does not know at the time of such payment derived from Excluded Amounts
or from other amounts that do not constitute Collections or Net Proceeds of Purchased Assets),
the Trust shall remit, or shall cause the Servicer to remit, within 3 Business Days of receipt
of any such amounts, all of such amounts to the Seller. Until such remittance shall have been
made, the Trust shall hold, or shall cause the Servicer to hold, all such amounts in trust for
the Seller.
 (9)
    
    On the Closing Date, the Trust shall (i) deposit to the Cash Spread Account from the proceeds
of the sale of the Notes, an aggregate amount equal to the Required Cash Spread Amount and
(ii) deposit to the Yield Supplement Account from the proceeds of the sale of the Notes, an
aggregate amount equal to the Required Yield Supplement Amount. The initial Servicer may from
time to time invest amounts in the Cash Spread Account and Yield Supplement Account in
Permitted Investments. Following the appointment of any Replacement Servicer, the Trust shall
invest such amounts in Permitted Investments. Any earnings on such investments shall be
deposited to the Cash Spread Account or Yield Supplement Account, as applicable, for
application in accordance herewith.
 (10)
    
    Notwithstanding Section 6.1(1):
 (a)
    
    any amounts in the U.S. Dollar Collections Account on a Distribution Date shall
be used solely for the purpose of paying the U.S. Dollar amounts owed by the Trust in
respect of the Class A-1b Notes, as provided for (and in the priority provided for) in
Section 6.1(2)(a)(ii)(B) and 6.1(2)(b)(ii)(B), unless (a) other amounts available to
pay prior amounts provided for in Sections 6.1(1) or 6.1(2) are not sufficient, in
which case such U.S. Dollar amounts shall be applied for




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- 62 - such purpose as well, in the specified priority and to the extent required, and
converted by the Servicer (or after the appointment of a Replacement Servicer, the
Trust) to Canadian Dollars or (b) all principal and interest outstanding on the
Class A-1 Notes has been repaid in full;(b)
    
    any GST collected by the Trust shall be used to pay GST owing by the Trust, and
otherwise applied in accordance with Applicable Law; and(c)
    
    any settlement amounts paid under the Swap Agreement may be used by the Trust
to enter into a replacement Hedging Transaction (as defined in the Trust Indenture).
 (11)
    
    On each Distribution Date, an amount equal to the aggregate Balance Amounts for the period
then ended shall become payable by the Trust to the Seller on account of Deferred Rent. Such
amounts owing by the Trust to the Seller shall bear interest at a rate equal to the Applicable
Rate and shall become due as provided in Section 6.1(3)(g) (and the Sellers recourse therefor
shall be limited to any amounts available to pay such amounts under Section 6.1(3)(g));
provided that the Trust has the option to prepay all or any portion of such amounts and
interest thereon out of the proceeds of any loans made to the Trust for that purpose.
 (12)
    
    If on any Distribution Date, (a) the sum of (i) the aggregate balance remaining in the
Collections Account and the U.S. Dollar Collections Account after making all payments and
allocations provided for under Section 6.1 (other than under Section 6.1(3)(f), (g), (h) or
(i)) on such date, plus (ii) the total amount then on deposit in the Cash Spread Account, plus
(iii) the total amount then on deposit in the Yield Supplement Account, is equal to or greater
than (b) the Outstanding Principal Note Balance on such date, then the Trust may elect, by
notice in writing to the Servicer and the Indenture Trustee, to deposit to the Collections
Account the total amount then on deposit in the Cash Spread Account and the Yield Supplement
Account and apply such amount, together with the balance otherwise remaining in the
Collections Account and the U.S. Dollar Collections Account to the payments and allocations
provided for under Section 6.1(2)(b)(ii) and, thereafter, Sections 6.1(3)(f), (g), (h) and
(i).
 Section 6.2       GST on Fees.




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- 63 - ARTICLE 7
EVENTS OF TERMINATION
 Section 7.1       Events of Termination.
 Event of Termination
 (a)
    
    a Servicer Default;(b)
    
    the Seller defaults in the payment of any amount due to the Trust hereunder or
under any other Transaction Documents and such default remains unremedied for a period
of three Business Days after written notice of such default has been received by the
Seller or the Seller has knowledge of such default;(c)
    
    the Seller defaults in the observance or performance in any material manner of
any of its covenants or obligations contained in any of the Transaction Documents
(other than as referred to in (b) above) and, if such default is capable of
rectification, such default remains unremedied for a period of 30 days after written
notice of such default has been received by the Seller or after the Seller has
knowledge of such default;(d)
    
    any representation or warranty made by the Seller (or any of its officers) in
or pursuant to any of the Transaction Documents proves to have been false or incorrect
when made (except to any extent which has not had and which would not reasonably be
expected to have a Material Adverse Effect), and, if the circumstances giving rise to
such incorrect representation or warranty are capable of rectification (such that,
thereafter, such representation and warranty would prove correct), such representation
or warranty remains uncorrected for a period of 30 days after written notice specifying
the incorrectness or after the Seller has actual knowledge of such incorrectness;(e)
    
    the Net Book Value of all Securitized Leases (determined on the basis that the
Net Book Value for a Defaulted Lease shall be deemed to be zero) is less than the
Outstanding Note Balance minus the total of the Required Cash Spread Amount and the
Required Yield Supplement Amount;(f)
    
    the Three-Month Average Charge-Off Ratio for any Distribution Date exceeds
1.0%;(g)
    
    the Three-Month Average Delinquency Ratio for any Distribution Date exceeds
7.0%;(h)
    
    an Insolvency Event occurs in respect of the Seller;(i)
    
    on three successive Distribution Dates, the amount on deposit in the Yield
Supplement Account is less than the Required Yield Supplement Amount, in each




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- 64 - case after any deposits to or withdrawals from the Yield Supplement Account on such
dates;(j)
    
    the Trust ceases at any time to own the Purchased Assets free of any Security
Interest, other than Permitted Liens and other than as a result of action by the Trust;
or(k)
    
    a Related Event of Default (as defined in the Trust Indenture) with respect to
Series 2010-1 occurs under (i) Section 8.1(a) of the Trust Indenture or (ii)
Section 2.1(bb)(i) of the Series 2010-1 Supplement, and in either event is continuing.
 Section 7.2       Segregation of Payments.
  Section 7.3       Clean-Up Provision.




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- 65 - ARTICLE 8
PERFORMANCE GUARANTEE
 Section 8.1       Performance of Obligations.
 Obligations
 Section 8.2       Payments Free of Set-Off.
  Section 8.3       Modifications.




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- 66 - Section 8.4       Guarantee Unconditional.
  (a)
    
    any extension, other indulgence, renewal, settlement, discharge, compromise,
waiver, subordination or release in respect of any Obligation, security, person or
otherwise;(b)
    
    any modification or amendment of or supplement to the Obligations made in
accordance with the Transaction Documents or otherwise, including, without limitation,
any increase or decrease in any amount payable under this Agreement;(c)
    
    any release, non-perfection or invalidity of any direct, indirect or collateral
security for any Obligation;(d)
    
    any change in the existence, structure, constitution, name, objects, powers,
business or control of the Seller or PHH VMS or any other person, or any insolvency,
bankruptcy, reorganization or other similar proceeding affecting the Seller or PHH VMS
or any other person, or any of their assets;(e)
    
    the existence of any claim, set-off or other rights which the Performance
Guarantor may have at any time against the Seller or PHH VMS, the Trust, or any other
person, whether in connection herewith or any unrelated transactions;(f)
    
    any invalidity, illegality or unenforceability relating to or against the
Seller or PHH VMS or any provision of applicable law or regulation purporting to
prohibit the payment or performance by the Seller or PHH VMS of any Obligation
including, the payment of any principal or interest;(g)
    
    any limitation, postponement, prohibition, subordination or other restriction
on the right of the Trust to payment and performance of the Obligations;(h)
    
    any release, substitution or addition of any co-signer, endorser or other
guarantor, including, without limitation, the Seller or PHH VMS, of any of the
Obligations;(i)
    
    any defence arising by reason of any failure by the Trust to make any
presentment, demand for performance, notice of non-performance, protest or any other
notice, including notice of any of the following: acceptance of this Agreement, partial
payment or non-payment, a partial performance or non-performance of all or any part of
the Obligations and the existence, creation or incurring of new or additional
Obligations;(j)
    
    any defence arising by reason of any failure by the Trust to proceed against
the Seller or PHH VMS or any other person, to proceed against, apply or exhaust any




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- 67 - security held, or granted by or from the Seller or PHH VMS or any other person, for
any of the Obligations, to proceed against, apply or exhaust any security held from
the Performance Guarantor or any other person for this Agreement or to pursue any
other remedy in the power of the Trust whatsoever;(k)
    
    any law which provides that the obligation of a guarantor must neither be
larger in amount nor in other respects more burdensome than that of the principal
obligation or which reduces a guarantors obligation in proportion to the principal
obligation;(l)
    
    any defence arising by reason of any incapacity, lack of authority or other
defence of the Seller or PHH VMS or any other person, or by reason of any limitation,
postponement, prohibition on the Trusts right to payment of the Obligations or any
part thereof, or by reason of the cessation from any cause whatsoever of the liability
of the Seller or PHH VMS or any other person, with respect to all or any part of the
Obligations, or by reason of any act or omission of the Trust or others which directly
or indirectly results in the discharge or release of the Seller or PHH VMS or any other
person, of all or any part of the Obligations or any security or guarantee therefor,
whether by contract, operation of law or otherwise;(m)
    
    any defence arising by reason of any failure by the Trust to obtain, perfect or
maintain a perfected or prior (or any) security interest in or lien or encumbrance upon
any property of the Seller or PHH VMS or any other person, or by reason of any interest
of the Trust in any property, whether as owner, lessee or bailee thereof or as the
holder of a security interest therein or lien or encumbrance thereon, being
invalidated, voided, declared fraudulent or preferential or otherwise set aside, or by
reason of any impairment by the Trust of any right to recourse or collateral;(n)
    
    any defence arising by reason of the failure by the Trust to marshal any
assets;(o)
    
    any defence based upon any failure by the Trust to give to the Seller or PHH
VMS or the Performance Guarantor notice of any sale or other disposition of any
property securing any or all of the Obligations or any guarantee thereof, or any defect
in any notice that may be given in connection with any sale or other disposition of any
such property, or any failure of the Trust to comply with any provision of applicable
law in enforcing any security interest in or lien upon any such property, including,
without limitation, any failure by the Trust to dispose of any such property in a
commercially reasonable manner;(p)
    
    any dealing whatsoever with the Seller or PHH VMS or any other person, or any
security, whether negligently or improvidently or not, or any failure to do so;(q)
    
    any defence based upon or arising out of any bankruptcy, insolvency,
reorganization, moratorium, arrangement, readjustment of debt, liquidation or
dissolution proceeding commenced by or against the Seller or PHH VMS or any




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- 68 - other person, or any discharge of, or bar against collecting, any of the
Obligations, in or as a result of any such proceeding; or(r)
    
    any other act or omission to act or delay of any kind by the Seller or PHH VMS,
the Trust or any other person, or any other circumstance whatsoever, whether similar or
dissimilar to the foregoing, which might, but for the provisions of this Section 8.4,
constitute a legal or equitable discharge, limitation or reduction of the Performance
Guarantors obligations hereunder (other than the payment and extinguishment in full of
all of the Obligations).
  Section 8.5       No Subrogation.
  Section 8.6       Settlement of Accounts.
  Section 8.7       Stay of Acceleration.
  Section 8.8       Reinstatement.




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- 69 -  Section 8.9       Representations and Warranties.
  (a)
    
    the Performance Guarantor is a corporation validly existing under the laws of
its jurisdiction of incorporation, has full corporate power and authority to own its
properties and assets and to carry on its businesses, as presently owned and carried on
by it, in every jurisdiction in which it is currently carrying on business;(b)
    
    the Performance Guarantor has full corporate power and capacity to execute and
deliver this Agreement and to perform all of its obligations hereunder;(c)
    
    the Performance Guarantor has taken all necessary action to authorize the
execution and delivery of this Agreement and the performance of its obligations
hereunder;(d)
    
    this Agreement has been duly executed and delivered by the Performance
Guarantor;(e)
    
    this Agreement is a legal, valid and binding obligation of the Performance
Guarantor and is enforceable against the Performance Guarantor by the Trust in
accordance with its terms, subject to applicable bankruptcy, reorganization,
insolvency, moratorium or other similar laws affecting creditors rights generally and
equitable principles of general application (regardless of whether enforcement is
sought in a proceeding at law or in equity;(f)
    
    the execution and delivery by the Performance Guarantor of this Agreement and
the performance by the Performance Guarantor of its obligations hereunder and of the
transactions contemplated hereby, does not and will not contravene, breach, constitute
a default under, violate or conflict with, as the case may be:
 (A)
    
    the Performance Guarantors constating
documents or by-laws or any resolution passed by the board of directors
or shareholders of the Performance Guarantor;(B)
    
    any law, rule or regulation applicable to or
binding on the Performance Guarantor or any of its property and assets;
or(C)
    
    any order, writ, judgment, award, injunction or
decree binding on the Performance Guarantor or affecting its property
or assets,




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- 70 - and does not and will not result in or require the creation of any encumbrance upon
any of the property and assets of the Performance Guarantor;(g)
    
    the execution and delivery by the Performance Guarantor of this Agreement and
the performance of its obligations hereunder and of the transactions contemplated
hereby, does not and will not contravene, breach, constitute a default under, violate
or conflict with, as the case may be, any material indenture, loan or credit agreement,
lease, mortgage, security agreement, bond, note, contract or other agreement or
instrument to which the Performance Guarantor is a party or by which it, or its
property and assets, are bound;(h)
    
    no authorization, approval or other action by, and no notice to or filing with,
any governmental authority, agency or any other person is necessary in connection with
the execution and delivery by the Performance Guarantor of this Agreement or the
performance of its obligations hereunder or of the transactions contemplated hereby, or
to give legal effect to the same other than such as have been obtained or made; and(i)
    
    there are no actions, suits or proceedings pending or, to the knowledge of the
Performance Guarantor, threatened against or affecting the Performance Guarantor or any
of its undertakings, property and assets, at law or in equity or before any arbitrator
or before or by any governmental authority, governmental department, body, agency,
commission, board, bureau, or instrumentality having jurisdiction in the premises in
respect of which there is a reasonable possibility of a determination adverse to the
Performance Guarantor which could, if determined adversely, materially and adversely
affect the ability of the Performance Guarantor to perform any of its obligations
hereunder.
 Section 8.10      Waiver.
  Section 8.11      Costs and Expenses.




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##### 



- 71 - Section 8.12      Termination.
  ARTICLE 9
MISCELLANEOUS
 Section 9.1       Notice.
   farhan.mir@bnymellon.com
  mark.johnson@phhmail.com




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- 72 -  Joseph.weikel@phh.com
  farhan.mir@bnymellon.com




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##### 



- 73 -  
  
 mark.johnson@phhmail.com
  
 Joseph.weikel@phh.com
 To the Replacement Servicer, at the address provided for in the Back-Up Servicer Agreement
or Substitute Servicer Agreement (as defined therein), as applicable.
  Section 9.2       Amendments and Waivers.
 (1)
    
    This Agreement and the Master Lease may be amended, supplemented, modified, restated or
replaced by written instrument only signed by the Seller, the Servicer, the Trust and the
Performance Guarantor, notice of which has been concurrently provided to the Rating Agencies.




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- 74 - 
 (2)
    
    No waiver of any provision of this Agreement, nor consent to any departure by any party
therefrom, shall in any event be effective unless the same shall be in writing and signed by
such party, and then said waiver or consent shall be effective only in the specific instance
and for the specific purpose for which given. No failure on the part of any party to
exercise, and no delay in exercising, any right hereunder shall operate as a waiver thereof.
 (3)
    
    The Seller acknowledges that the Trust is restricted from agreeing to certain amendments and
waivers in respect of this Agreement pursuant to Section 6.2(f) of the Trust Indenture.
 Section 9.3       Successors and Assigns.
  Section 9.4       Indemnification.
 (1)
    
    The Seller will indemnify the Trust and its agents and save them harmless from and against
any and all damages, losses, claims, liabilities, costs and expenses (collectively, Losses)
awarded against or incurred by the Trust or such agents arising out of or as a result of:
 (a)
    
    the assignment of Lease Rights relating to Securitized Leases which are
Ineligible Securitized Leases (except to the extent any such Ineligible Securitized
Leases are repurchased by the Seller in accordance herewith);(b)
    
    the failure of PHH VMS, the Limited Partner or the Seller to transfer ownership
in, and to vest in:
 (i)
    
    in the case of PHH VMS, the Limited Partner,(ii)
    
    in the case of the Limited Partner, the Seller, and(iii)
    
    in the case of the Seller, the Trust,
 the Lease Rights relating to the Securitized Leases free and clear of any Security
Interest, other than any Security Interest created by or arising through the Trust;(c)
    
    the use, operation, maintenance or ownership of any Leased Equipment;




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- 75 - (d)
    
    the failure to comply with Applicable Laws with respect to the registered
ownership of Securitized Equipment;(e)
    
    subject to taking into account any amounts paid by the Seller or the Servicer
pursuant to Sections 2.3, 4.2 and 5.4, any representation or warranty made by the
Seller in any Transaction Document or any other document furnished pursuant thereto
which was incorrect in any material respect when made;(f)
    
    any failure of the Seller or PHH VMS to perform or observe any of its duties,
obligations or covenants under any of the Transaction Documents;(g)
    
    disclosure of any personal information relating to any Obligor by the Seller or
PHH VMS;(h)
    
    any taxes (or any interest or penalties with respect thereto) at any time being
asserted against the Trust with respect to the assignment of the Purchased Assets or
any other charges relating to the transactions contemplated hereby that may result in a
statutory lien or deemed trust that may rank ahead of the interest of the Trust in the
Purchased Assets or the Security Interest granted to the Indenture Trustee, other than
any Security Interest created by or arising through the Trust;(i)
    
    the failure of the Trust to be recorded as an additional insured or loss payee
in respect of the insurance required to be maintained by the Obligors of the
Securitized Equipment; or(j)
    
    the commingling by the Seller of Collections with respect to Lease Rights
forming part of the Portfolio of Assets at any time with other funds,
 except, in each case, to the extent that such Losses arise out of or as a result of (i) the
gross negligence, wilful misconduct, misfeasance or bad faith of the Trust or any of its
agents, or (ii) as a direct result of the negligence, wilful misconduct, misfeasance or bad
faith of the Financial Services Agent, the Financial Services Sub-Agent or any Replacement
Servicer which, in the case of either (i) or (ii) above, is not the Seller or any Affiliate
of the Seller.
 (2)
    
    The Seller and the Trust each agree to provide reasonable assistance to the other party, at
the request of such other party and, in either case, at the Sellers expense, in any action,
suit or proceeding brought by or against, or any investigation involving such requesting party
(including the Financial Services Agent in respect of the Trust but excluding any actions
against each other) relating to any of the transactions contemplated hereby or to any part of
the Portfolio of Assets. If the Seller may be liable under Section 9.4(1) in respect of any
Losses in connection with any such action, suit, proceeding or investigation, and, in the sole
determination of the Trust, acting reasonably, the Seller or the Performance Guarantor has the
financial ability to pay such damages, losses, claims, liabilities, costs and expenses, the
Seller will have the right, on behalf of the Trust or the Financial Services Agent but at the
Sellers expense, to defend such action, suit or




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- 76 - proceeding, or participate in such investigation,
with counsel selected by it, and will have sole
discretion as to whether to litigate, appeal or
settle.
 Section 9.5       Costs, Expenses and Taxes.
  Section 9.6       Correction of Errors.
  Section 9.7       Change in Circumstance.




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- 77 -  Section 9.8       Time of Essence.
  Section 9.9       Failure to Perform.
  Section 9.10      Consent to Jurisdiction; Waiver of Immunities.
 (1)
    
    The parties hereto each hereby irrevocably (i) submit to the jurisdiction of any court
sitting in Toronto in any action or proceeding arising out of or relating to this Agreement;
(ii) agree that all claims in respect of such action or proceeding may be heard and determined
in such Toronto court; (iii) waive, to the extent permitted by law, the defense of an
inconvenient forum to the maintenance of such action or proceeding; and (iv) agree that a
final judgment in any action or proceeding shall be conclusive and may be enforced in other
jurisdictions by suit on the judgment or in any other manner provided by law.
 (2)
    
    Nothing in this Section 9.10 shall affect the right of the Trust to serve legal process in
any other manner permitted by law, or affect its right to enforce any action, proceeding or
judgment against the Seller, the Servicer or the Performance Guarantor or their respective
property in the courts of other jurisdictions.
 (3)
    
    To the extent that the Seller, the Servicer or the Performance Guarantor has or hereafter may
acquire any immunity from jurisdiction of any court or from any legal process (whether through
service or notice, attachment prior to judgment, attachment in aid of execution, execution or
otherwise) with respect to itself or its property, the Seller, the Servicer and the
Performance Guarantor hereby irrevocably waive, to the extent permitted by law, such immunity
in respect of their obligations hereunder.
 Section 9.11      Confidentiality.




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- 78 -  Section 9.12      Further Assurances.
  Section 9.13      Remedies.
  Section 9.14      Limitation of Liability of Financial Services Agent and Issuer Trustee.
 (1)
    
    The Issuer Trustee has entered into this Agreement solely in its capacity as trustee of the
Trust and not in its personal capacity, and any and all of the representations, warranties,
undertakings, covenants, indemnities, agreements and other obligations made on the part of or
by the Issuer Trustee herein are made and intended not as personal representations,
warranties, undertakings, covenants, indemnities, agreements and other obligations of or by
the Issuer Trustee or for the purpose or with the intention of binding the Issuer Trustee in
its personal capacity, but are made and intended for the purpose of binding only the Trust and
the Trust Property or a specific portion thereof. No property or assets of the Issuer
Trustee, whether owned beneficially by it in its personal capacity or otherwise (other than
the Trust Property), will be subject to levy, execution or other enforcement procedures with
regard to any of the representations, warranties, undertakings, covenants, indemnities,
agreements or other obligations of the Trust or the Issuer Trustee hereunder, and no recourse
may be had or taken, directly or indirectly against the Issuer Trustee in its personal
capacity, any beneficiary of the Trust or any affiliate, shareholder, director, officer,
representative, employee or agent of the Issuer Trustee or any predecessor or successor of the
Issuer Trustee with regard to the representations, warranties, undertakings, covenants,
indemnities, agreements and other obligations of the Trust or the Issuer Trustee hereunder.
 (2)
    
    This Agreement shall be deemed and construed for all purposes as if made by the Financial
Services Agent in and only in its capacity as agent of the Issuer Trustee. Any liability of
the Financial Services Agent under this Agreement is non-recourse to the Financial Services
Agent in its personal capacities and limited solely to the property of the Trust. No other
property or assets of the Financial Services Agent, whether owned by




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- 79 - it in its personal capacity or otherwise, will be subject to levy, execution or other
enforcement procedure with regard to any obligation under this Agreement.
 (3)
    
    The foregoing will not in any way affect any rights that the other parties hereto may have
hereunder to (a) proceed against any person with respect to the enforcement of any guarantee
of, or collateral security for, payment of such obligations or (b) recover any funds, damages,
expenses or costs as a result of fraud, wilful misconduct, bad faith, negligence or
misrepresentation by the Issuer Trustee or the Financial Services Agent in its personal
capacity.
 Section 9.15      Limited Partnership.
 The
Partnership Act
 Section 9.16      Execution in Counterparts.
  [Signature pages follow]




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PHH VEHICLE MANAGEMENT SERVICES INC.By:
    /s/
    Mark E. JohnsonName:
    Mark E. JohnsonTitle:
    Senior Vice-President and 
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 and 
Treasurer




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##### 



BNY TRUST COMPANY OF CANADAin 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 and 
TreasurerPHH CORPORATIONBy:
    /s/
    Sandra E. BellName:
    Sandra E. BellTitle:
    Executive Vice-President and 
Chief Financial Officer