Document:

EX-10.6

Exhibit 10.6

 

 

VW CREDIT LEASING, LTD.

TRANSACTION SUBI SUPPLEMENT 20[     ]-[     ]

TO ORIGINATION TRUST AGREEMENT

Between

VW CREDIT, INC.,

As Settlor And Initial Beneficiary

And

U.S. BANK NATIONAL ASSOCIATION,

As Administrative Trustee, UTI Trustee And SUBI Trustee

Dated as of [           ], [     ]

 

 

 

 

CONTENTS

	 	 	 	 	 	 	 
	Clause	 	Subject Matter	 	Page	 
	 
	 	 	 	 	 	 
	PART X
	 	DEFINITIONS; THIRD-PARTY BENEFICIARIES	 	 	2	 
	Section 10.1
	 	Definitions	 	 	2	 
	Section 10.2
	 	Third-Party Beneficiaries	 	 	3	 
	 
	PART XI
	 	CREATION OF THE TRANSACTION SUBI	 	 	3	 
	Section 11.1
	 	Initial Creation of Transaction SUBI Portfolio and Transaction SUBI	 	 	3	 
	Section 11.2
	 	Subsequent Removals From the Transaction SUBI Portfolio	 	 	3	 
	Section 11.3
	 	Issuance and Form of Transaction SUBI Certificate	 	 	4	 
	Section 11.4
	 	Filings; Termination of Transaction SUBI; Related Matters	 	 	4	 
	Section 11.5
	 	Acceptance by SUBI Trustee	 	 	5	 
	Section 11.6
	 	Representations and Warranties of SUBI Trustee	 	 	5	 
	Section 11.7
	 	Merger and Consolidation of Origination Trustees	 	 	6	 
	 
	PART XII
	 	ASSIGNMENT OF THE TRANSACTION SUBI	 	 	6	 
	Section 12.1
	 	Assignment	 	 	6	 
	 
	PART XIII
	 	MISCELLANEOUS PROVISIONS	 	 	7	 
	Section 13.1
	 	Amendment, Etc.	 	 	7	 
	Section 13.2
	 	Governing Law	 	 	8	 
	Section 13.3
	 	Notices	 	 	8	 
	Section 13.4
	 	Severability of Provisions	 	 	8	 
	Section 13.5
	 	Effect of Transaction SUBI Supplement on Origination Trust Agreement and Transaction Documents	 	 	9	 
	Section 13.6
	 	Each SUBI Separate; Assignees of SUBI	 	 	9	 
	Section 13.7
	 	No Petition; Release of Claims	 	 	10	 
	Section 13.8
	 	Tax Matters	 	 	10	 
	Section 13.9
	 	ENTIRE AGREEMENT	 	 	10	 
	Section 13.10
	 	Submission to Jurisdiction; Waiver of Jury Trial	 	 	11	 
	Section 13.11
	 	Form 10-D Filings	 	 	11	 
	Section 13.12
	 	Form 8-K Filings	 	 	11	 
	Section 13.13
	 	Indemnification	 	 	11	 
	Section 13.14
	 	Several Obligations	 	 	12	 
	 
	SCHEDULE 1: Description of Transaction Units	 	 	 	 
	EXHIBIT A: Form of Transaction SUBI Certificate	 	 	 	 

-i-

 

TRANSACTION SUBI SUPPLEMENT 20[  ]-[ ]

TO ORIGINATION TRUST AGREEMENT

     THIS TRANSACTION SUBI SUPPLEMENT 20[ ]-[ ] TO ORIGINATION TRUST AGREEMENT (as amended,
modified or supplemented from time to time, the “Transaction SUBI Supplement”), dated and
effective as of [ ], [ ], is between VW CREDIT, INC., a Delaware corporation (“VCI”; in
its capacity as settlor, the “Settlor”; or in its capacity as initial beneficiary, the
“Initial Beneficiary”), and U.S. BANK NATIONAL ASSOCIATION, a national banking association,
as successor to U.S. Bank Trust National Association, as administrative trustee (in such capacity,
together with any successor or permitted assign, the “Administrative Trustee”), as UTI
trustee (in such capacity, together with any successor or permitted assign, the “UTI
Trustee”) [and as trustee with respect to the Transaction SUBI] (in such capacity, together
with any successor or permitted assign, the “SUBI Trustee”; together with the UTI Trustee,
the Administrative Trustee and Wilmington Trust Company, as Delaware Trustee (the “Delaware
Trustee”), the “Origination Trustees”).

RECITALS

     A. The Settlor, the UTI Trustee, the Administrative Trustee and the Delaware Trustee have
entered into that certain Trust Agreement dated as of June 2, 1999 (as modified, supplemented or
amended from time to time, the “Origination Trust Agreement”) pursuant to which the Settlor
formed VW Credit Leasing, Ltd., a Delaware statutory trust (the “Origination Trust”) for
the purpose of acting as agent and nominee owner of various Origination Trust Assets in accordance
with the Origination Trust Agreement.

     B. The Origination Trust and VCI, as servicer (in its capacity as servicer, the
“Servicer”), also have entered into that certain Servicing Agreement dated as of June 22,
1999 and as amended and restated as of December 21, 2000 (as modified, supplemented or amended from
time to time, the “Servicing Agreement”), which provides, among other things, for the
servicing of the Origination Trust Assets by the Servicer.

     C. The Origination Trust Agreement contemplates that from time to time the UTI Trustee, on
behalf of the Origination Trust and at the direction of the Initial Beneficiary, will identify and
allocate on the Origination Trust’s books and records certain Origination Trust Assets from the
Undivided Trust Interest to separate SUBI Portfolios and will create and issue Certificates to the
Initial Beneficiary representing separate special units of beneficial interest in the Origination
Trust or “SUBIs”, the beneficiary or beneficiaries of which will hold an exclusive 100%
undivided beneficial ownership interest in the related SUBI Portfolios, all as set forth in the
Origination Trust Agreement.

     D. The parties hereto desire to supplement the terms of the Origination Trust Agreement (i) to
cause the UTI Trustee to identify and allocate Origination Trust Assets to a SUBI Portfolio (the
“Transaction SUBI Portfolio”), which shall consist of Transaction Units consisting of
Transaction Leases, Transaction Vehicles and the associated Related Rights, (ii) to create and
issue to the Initial Beneficiary a SUBI Certificate (such SUBI Certificate, together with any
replacements thereof, the “Transaction SUBI Certificate”) that will evidence and represent
the entire and exclusive beneficial ownership interest in the related SUBI (the

Transaction SUBI Supplement 20[ ]-[ ] to

Origination Trust Agreement

 

 

“Transaction SUBI”) and the interests in the SUBI Portfolio represented thereby, (iii)
to provide for the Origination Trust’s continued holding of record title to the Transaction SUBI
Portfolio (including the Transaction Vehicles) as agent and nominee for (and solely for the benefit
of) the holder of the Transaction SUBI Certificate, and (iv) to set forth the terms and conditions
thereof.

     E. Concurrently herewith, (i) VCI and Volkswagen Auto Lease/Loan Underwritten Funding, LLC, a
Delaware limited liability company (the “Transferor”), are entering into a SUBI Sale
Agreement, pursuant to which the Transferor will purchase the Transaction SUBI and (ii) the
Transferor and Volkswagen Auto Lease Trust 20[   ]-[ ], a Delaware statutory trust (the
“Issuer”), are entering into a SUBI Transfer Agreement, pursuant to which the Transferor
will transfer the Transaction SUBI to the Issuer.

     F. Concurrently herewith, the Issuer is entering into an asset-backed financing transaction
pursuant to, among other agreements, an Indenture dated as of the date hereof (the
“Indenture”) between the Issuer and [   ], as indenture trustee (the “Indenture
Trustee”), pursuant to which, among other things, the Issuer will issue notes and will Grant a
security interest to the Indenture Trustee in certain of its assets, including the Transaction
SUBI.

     G. Also concurrently herewith, the Origination Trust, the Servicer and the SUBI Trustee are
entering into that certain Transaction SUBI Supplement 20[ ]-[ ] to Servicing Agreement (as
amended, modified or supplemented from time to time, the “Transaction SUBI Servicing
Supplement”) pursuant to which, among other things, the terms of the Servicing Agreement will
be supplemented insofar as they apply to the Transaction SUBI Portfolio, providing for specific
servicing obligations.

          NOW THEREFORE, in consideration of the premises and the mutual covenants contained herein and
in the Origination Trust Agreement, the parties hereto agree to the following supplemental
obligations with regard to the Transaction SUBI Portfolio:

PART X

DEFINITIONS; THIRD-PARTY BENEFICIARIES

     Section 10.1 Definitions.

     For all purposes of this Transaction SUBI Supplement, except as otherwise expressly provided
or unless the context otherwise requires, (a) unless otherwise defined herein, all capitalized
terms used herein shall have the meanings attributed to them in Appendix A to the
Indenture, (b) all capitalized terms used herein which are not defined herein or in the Indenture
and which are defined in the Origination Trust Agreement shall have the meanings attributed to them
by the Origination Trust Agreement, (c) all references to words such as “herein”, “hereof” and the
like shall refer to this Transaction SUBI Supplement as a whole and not to any particular article
or section within this Transaction SUBI Supplement, (d) the term “include” and all variations
thereon shall mean “include without limitation”, and (e) the term “or” shall include “and/or”.

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     Section 10.2 Third-Party Beneficiaries.

     The holder and pledgees of the Transaction SUBI Certificate (including the Issuer and the
Indenture Trustee), and their respective successors, permitted assigns and pledgees are third-party
beneficiaries of the Origination Trust Agreement and this Transaction SUBI Supplement, insofar as
they apply to the Transaction SUBI.

PART XI

CREATION OF THE TRANSACTION SUBI

     Section 11.1 Initial Creation of Transaction SUBI Portfolio and Transaction SUBI.

     (a) Pursuant to Section 4.2(a) of the Origination Trust Agreement, the Initial
Beneficiary hereby directs the UTI Trustee to identify and allocate or cause to be identified and
allocated on the books and records of the Origination Trust a separate portfolio of SUBI Assets to
be accounted for and held in trust independently from all other Origination Trust Assets consisting
of those Units (each, a “Transaction SUBI Asset”), which shall include Leased Vehicles
which are identified on Schedule 1 to this Transaction SUBI Supplement, the Transaction
Leases relating thereto and all other Origination Trust Assets to the extent related thereto (other
than cash which does not constitute Collections received on or after the Cut-Off Date). Based upon
their identification and allocation by the Initial Beneficiary pursuant to such Schedule 1,
the UTI Trustee hereby identifies and allocates as Transaction SUBI Assets such portfolio of SUBI
Assets to be held by the Origination Trust, as agent and nominee (and solely for the benefit of)
the holder of the Transaction SUBI Certificate, each such SUBI Asset to be identified on the books
and accounts of the Origination Trust as belonging exclusively to the Transaction SUBI Portfolio;
provided that any Collections received on or prior to the Cut-Off Date for any such Transaction
Unit identified on Schedule 1 shall not be allocated as Transaction SUBI Assets and shall
not belong to the Transaction SUBI Portfolio.

     (b) Also pursuant to Section 4.2(a) of the Origination Trust Agreement, the UTI
Trustee hereby creates a SUBI which shall be known as the “VW Credit Leasing Ltd. Transaction
Special Unit of Beneficial Interest 20[ ]-[ ] Certificate” or “Transaction SUBI” and which shall
represent an exclusive and specific 100% beneficial ownership interest solely in the Transaction
SUBI Portfolio and those proceeds or assets derived from or earned by such Transaction SUBI
Portfolio.

     (c) Pursuant to Section 4.2(d) of the Origination Trust Agreement (which requires each
holder of a SUBI to appoint for such SUBI a trustee), VCI has appointed U.S. Bank National
Association as the SUBI Trustee for the Transaction SUBI and the Transaction SUBI Portfolio.

     Section 11.2 Subsequent Removals From the Transaction SUBI Portfolio.

     (a) Upon compliance by VCI with the provisions of Section 2.3(c) of the SUBI Sale
Agreement to repurchase the beneficial interest in any Transaction Unit, such Unit shall be
identified on a schedule to the Servicer Certificate and reallocated from the Transaction SUBI to
the Undivided Trust Interest on the Payment Date that such reallocation payment is made. Upon the
Payment Date of any of the foregoing reallocations, the UTI Trustee and the SUBI Trustee

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will each make (or cause to be made) a notation in their respective records reflecting the
reallocation of such Origination Trust Assets as of the time thereof.

     (b) Upon compliance by the Servicer with the provisions of Section 7.12 of the
Transaction SUBI Servicing Supplement to purchase the beneficial interest in any Transaction Unit
subject to a Postmaturity Term Extension, such Unit will be identified on a schedule to the
Servicer Certificate and reallocated from the Transaction SUBI to the Undivided Trust Interest (if
the Servicer is VCI) or to an Other SUBI designated by the Servicer (if the Servicer is not VCI) on
the Payment Date that such reallocation payment is made. Upon the Payment Date of any of the
foregoing reallocations, the SUBI Trustee and the UTI Trustee or Other SUBI Trustee, as applicable,
will each make (or cause to be made) a notation in their respective records reflecting the
reallocation of such Origination Trust Assets as of the time thereof.

     Section 11.3 Issuance and Form of Transaction SUBI Certificate.

     (a) The Transaction SUBI shall be represented by a Transaction SUBI Certificate which shall
represent an exclusive 100% beneficial ownership interest in the Transaction SUBI and the
Transaction SUBI Portfolio, as further set forth herein. The Transaction SUBI Certificate shall be
substantially in the form of Exhibit A attached hereto, with such appropriate insertions,
omissions, substitutions and other variations as are required by this Transaction SUBI Supplement
and may have such letters, numbers or other marks of identification and such legends and
endorsements placed thereon as may, consistently herewith and with the Origination Trust Agreement,
be directed by the Initial Beneficiary. Any portion of the Transaction SUBI Certificate may be set
forth on the reverse thereof. The Transaction SUBI Certificate shall be printed, lithographed,
typewritten, mimeographed, photocopied or otherwise produced or may be produced in any other manner
as may, consistently herewith and with the Origination Trust Agreement, be determined by the
Initial Beneficiary.

     (b) The Transaction SUBI Certificate shall contain an express written release and
subordination of any claim by any holder thereof to any proceeds or assets of any Origination
Trustee and to all of the Origination Trust Assets other than those from time to time included
within the Transaction SUBI Portfolio.

     Section 11.4 Filings; Termination of Transaction SUBI; Related Matters.

     (a) The Settlor, the UTI Trustee and the SUBI Trustee will undertake all other and future
actions and activities as may be required by the Servicer (pursuant to the Transaction SUBI
Servicing Supplement) to perfect (or evidence) and confirm the foregoing identification and
allocation of SUBI Assets to the Transaction SUBI Portfolio, including filing or causing to be
filed UCC financing statements and executing and delivering all related filings, documents or
writings as may be deemed reasonably necessary by the Servicer hereunder or under any of the
Transaction Documents and as are presented to them in final execution form; provided, however, that
in no event will the Settlor, the Servicer or any Origination Trustee be required to take any
action to indicate any Person as lienholder or change the Person listed as owner on the Certificate
of Title for any Leased Vehicle allocated to the Transaction SUBI Portfolio other than as provided
in Section 11.4(c) below. The Settlor hereby irrevocably makes and appoints each of the
SUBI Trustee and the Servicer, and any of their respective officers, employees or agents, as

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the true and lawful attorney-in-fact of the Settlor (which appointment is coupled with an
interest and is irrevocable) with power to authorize on behalf of the Settlor any financing
statements or continuation statements, and to sign on behalf of the Settlor any security
agreements, mortgages, assignments, affidavits, letters of authority, notices or similar documents
necessary or appropriate to be executed or filed pursuant to this Section.

     (b) If all of the Transaction Units have been liquidated into cash and all of such cash shall
have been distributed in accordance with the Transaction SUBI Servicing Supplement, then, at the
direction of the holder of the Transaction SUBI Certificate, the Transaction SUBI shall be
terminated and the Transaction SUBI Certificate shall be returned to the SUBI Trustee and canceled
thereby.

     (c) Upon a written direction to the SUBI Trustee to revoke and terminate the Transaction SUBI
by the holder of the Transaction SUBI Certificate, the SUBI Trustee shall (i) revoke the
Transaction SUBI and (ii) promptly, at the expense of the holder of the Transaction SUBI
Certificate, distribute the Transaction SUBI Assets to the holder of the Transaction SUBI
Certificate; provided, however, that the Transaction SUBI shall not be subject to such revocation
prior to the earlier of (A) the acceleration of the Notes under Section 5.2 of the
Indenture following an Indenture Default or (B) payment in full of principal and accrued interest
on the Notes.

     Section 11.5 Acceptance by SUBI Trustee.

     The SUBI Trustee shall have only the rights, powers and duties as set forth herein and in the
Origination Trust Agreement with respect to the Transaction SUBI. In accordance with Section
3.1(d) of the Origination Trust Agreement, the SUBI Trustee hereby accepts its appointment as
SUBI Trustee with respect to the Transaction SUBI hereunder and agrees to act as a trustee of the
Origination Trust for the benefit of the holder or holders of each Transaction SUBI Certificate in
accordance with the terms of this Transaction SUBI Supplement and the Origination Trust Agreement.
Except to execute and deliver the Transaction Documents to which it is a party and to exercise and
carry out or cause to be exercised and carried out the rights, duties and obligations of the SUBI
Trustee hereunder and thereunder and except as otherwise authorized by the holder of the
Transaction SUBI Certificate, the SUBI Trustee shall have no power, right, duty or authority to
manage, control, possess, sell, lease, dispose of or in any other manner deal in or with the
Transaction SUBI Certificate, the Transaction SUBI Portfolio or any Transaction SUBI Asset or any
part thereof or interest therein at any time conveyed to or vested in or registered or otherwise
standing in the name of the SUBI Trustee or the Origination Trust.

     Section 11.6 Representations and Warranties of SUBI Trustee.

     The SUBI Trustee hereby makes the following representations and warranties on which the
Settlor and Initial Beneficiary, each of their permitted assignees and each holder of the
Transaction SUBI Certificate may rely:

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     (a) Organization and Good Standing. The SUBI Trustee is a national banking
association, duly organized, validly existing and in good standing under the laws of the United
States.

     (b) Power and Authority. The SUBI Trustee has full power, authority and right to
execute, deliver and perform this Transaction SUBI Supplement and has taken all necessary action to
authorize the execution, delivery and performance by it of this Transaction SUBI Supplement.

     (c) Due Execution. This Transaction SUBI Supplement has been duly executed and
delivered by the SUBI Trustee, and this Transaction SUBI Supplement and the Origination Trust
Agreement are legal, valid and binding instruments enforceable against the SUBI Trustee in
accordance with their respective terms, except as such enforceability may be limited by bankruptcy,
insolvency and other similar laws relating to the enforcement of creditors’ rights generally and to
general principles of equity.

     (d) No Conflict. Neither the execution and delivery of this Transaction SUBI
Supplement nor the consummation of the transactions herein contemplated, nor compliance with the
provisions hereof, will conflict with or result in a breach of, or constitute a default (with
notice or passage of time or both) under, any provision of any law, governmental rule, regulation,
judgment, decree or order binding on the SUBI Trustee or the charter or bylaws of the SUBI Trustee
or any provision of any mortgage, indenture, contract, agreement or other instrument to which the
SUBI Trustee is a party or by which it is bound. No consent, approval or authorization of, or
filing, registration or qualification with, or the giving of notice or the taking of any other
action with respect to, any federal or Delaware state Governmental Authority is required on the
part of the SUBI Trustee in connection with the execution, delivery and performance by the SUBI
Trustee of the Origination Trust Agreement, the Servicing Agreement, the Transaction SUBI Servicing
Supplement and this Transaction SUBI Supplement.

     (e) Location of Records. The office where the SUBI Trustee keeps its records
concerning the transactions contemplated hereby is located at [209 S. LaSalle Street, Suite 300,
Chicago, Illinois 60604].

     Section 11.7 Merger and Consolidation of Origination Trustees. Each Origination
Trustee shall give notice to the Transferor and the Administrator within a reasonable time after
affecting any merger, consolidation, or other transaction set forth in Section 6.5 of the
Origination Trust Agreement.

PART XII

ASSIGNMENT OF THE TRANSACTION SUBI

     Section 12.1 Assignment.

     The parties to this Transaction SUBI Supplement hereby acknowledge and consent to the
mortgage, pledge, assignment and Grant of a security interest by the Issuer to the Indenture
Trustee pursuant to the Indenture for the benefit of the Noteholders of all of the Issuer’s rights
hereunder and the Transaction SUBI. The parties to this Transaction SUBI Supplement hereby
acknowledge and consent to (i) the sale from VCI to the Transferor and (ii) the sale from the

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Transferor to the Issuer of the Transaction SUBI Portfolio and the Transaction SUBI
Certificate. In addition, the parties to this Transaction SUBI Supplement hereby acknowledge and
agree that for so long as the Notes are outstanding, the Indenture Trustee and the Issuer acting
jointly will have the right to exercise all rights, remedies, powers, privileges and claims of the
Issuer under this Transaction SUBI Supplement; provided, however, that after the occurrence of an
Indenture Default, the Indenture Trustee alone will have the right to exercise such rights,
remedies, powers, privileges and claims.

PART XIII

MISCELLANEOUS PROVISIONS

     Section 13.1 Amendment, Etc.

     (a) Notwithstanding Section 9.1 of the Origination Trust Agreement, the Origination
Trust Agreement, as supplemented by this Transaction SUBI Supplement, to the extent that it deals
solely with the Transaction SUBI and the Transaction SUBI Portfolio, may be amended in accordance
with this Section 13.1.

     (b) Any term or provision of the Origination Trust Agreement or this Transaction SUBI
Supplement may be amended by the Initial Beneficiary, without the consent of any other Person
subject to satisfaction of one of the following conditions: (i) the Initial Beneficiary or the
Servicer delivers an Officer’s Certificate or an Opinion of Counsel to the Indenture Trustee and
the Origination Trustees to the effect that such amendment will not materially and adversely affect
the interests of the Noteholders or (ii) the Rating Agency Condition is satisfied with respect to
such amendment. Subject to clause (b) below, any term or provision of this Agreement may
be amended by the Transferor with the consent of Noteholders evidencing not less than a majority of
the Outstanding Note Amount, voting as a single class. Notwithstanding the foregoing, any
amendment that materially and adversely affects the interests of the Origination Trustees, the
Indenture Trustee or the Owner Trustee shall require the prior written consent of the Persons whose
interests are materially and adversely affected. The consent of the Certificateholders shall be
deemed to have been given if the Servicer does not receive a written objection from such Person
within 10 Business Days after a written request for such consent shall have been given.

     (c) Notwithstanding anything herein to the contrary (including clause (d) below), no amendment
shall (i) reduce the interest rate or principal amount of any Note, or delay the Final Scheduled
Payment Date of any Note without the consent of the Holder of such Note, or (ii) reduce the
percentage of the Outstanding Note Amount, the Holders of which are required to consent to any
matter without the consent of the Holders of at least the percentage of the Outstanding Note Amount
which were required to consent to such matter before giving effect to such amendment.

     (d) Notwithstanding anything herein to the contrary, any term or provision of this Transaction
SUBI Supplement may be amended by the Initial Beneficiary without the consent of any of the
Noteholders or any other Person to add, modify or eliminate any provisions as may be necessary or
advisable in order to comply with or obtain more favorable treatment under or with respect to any
law or regulation or any accounting rule or principle (whether now or in the future

7

 

in effect); it being a condition to any such amendment that the Rating Agency Condition shall
have been satisfied.

     (e) It shall not be necessary for the consent of any Person pursuant to this Section for such
Person to approve the particular form of any proposed amendment, but it shall be sufficient if such
Person consents to the substance thereof.

     (f) Prior to the execution of any amendment to this Transaction SUBI Supplement, the Initial
Beneficiary shall provide each Rating Agency with written notice of the substance of such
amendment. No later than 10 Business Days after the execution of any amendment to this Transaction
SUBI Supplement, the Initial Beneficiary shall furnish a copy of such amendment to each Rating
Agency, the Origination Trustees, the Owner Trustee and the Indenture Trustee.

     (g) Prior to the execution of any amendment to this Transaction SUBI Supplement, the Owner
Trustee, the Indenture Trustee and the Origination Trustees shall be entitled to receive and
conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by the Origination Trust Agreement or this Transaction SUBI Supplement and
that all conditions precedent to the execution and delivery of such amendment have been satisfied.

     Section 13.2 Governing Law.

     THIS TRANSACTION SUBI SUPPLEMENT SHALL BE CREATED UNDER AND GOVERNED BY AND CONSTRUED UNDER
THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES
OF CONFLICTS OF LAWS.

     Section 13.3 Notices.

     All demands, notices and communications hereunder shall be in writing and shall be delivered
or mailed by registered or certified first class United States mail, postage prepaid, hand
delivery, prepaid courier service, or by telecopier, and addressed in each case as set forth in
Schedule II to the Indenture or at such other address as shall be designated in a written
notice to the other parties hereto. Delivery shall occur only upon receipt or reported tender of
such communication by an officer of the recipient entitled to receive such notices located at the
address of such recipient for notices hereunder.

     Section 13.4 Severability of Provisions.

     If any one or more of the covenants, agreements, provisions or terms of this Transaction SUBI
Supplement shall be for any reason whatsoever held invalid, then such covenants, agreements,
provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions
or terms of this Transaction SUBI Supplement and shall in no way affect the validity or
enforceability of the other provisions of this Transaction SUBI Supplement or of the Transaction
SUBI Certificate or the rights of the holder thereof. To the extent permitted by law, the parties
hereto waive any provision of law that renders any provision of this Transaction SUBI Supplement
invalid or unenforceable in any respect.

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     Section 13.5 Effect of Transaction SUBI Supplement on Origination Trust Agreement and
Transaction Documents.

     (a) Except as otherwise specifically provided herein: (i) the parties shall continue to be
bound by all provisions of the Origination Trust Agreement; and (ii) the provisions set forth
herein shall operate either as additions to or modifications of the obligations of the parties
under the Origination Trust Agreement, as the context may require. In the event of any conflict
between the provisions of this Transaction SUBI Supplement and the Origination Trust Agreement with
respect to the Transaction SUBI, the provisions of this Transaction SUBI Supplement shall prevail.

     (b) For purposes of determining the parties’ obligations under this Transaction SUBI
Supplement with respect to the Transaction SUBI, general references in the Origination Trust
Agreement to: (i) the SUBI Portfolio shall be deemed to refer more specifically to the Transaction
SUBI Portfolio; (ii) the SUBI Supplement shall be deemed to refer more specifically to this
Transaction SUBI Supplement; and (iii) the SUBI Servicing Agreement Supplement shall be deemed to
refer more specifically to the Transaction SUBI Servicing Supplement.

     Section 13.6 Each SUBI Separate; Assignees of SUBI.

     Each party hereto acknowledges and agrees (and each holder or pledgee of the Transaction SUBI,
by virtue of its acceptance of such Transaction SUBI or pledge thereof acknowledges and agrees)
that (a) the Transaction SUBI is a separate series of the Origination Trust as provided in Section
3806(b)(2) of Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code § 3801
et seq., (b)(i) the debts, liabilities, obligations and expenses incurred,
contracted for or otherwise existing with respect to the Transaction SUBI or the Transaction SUBI
Portfolio shall be enforceable against the Transaction SUBI Portfolio only and not against any
Other SUBI Assets or the UTI Portfolio and (ii) the debts, liabilities, obligations and expenses
incurred, contracted for or otherwise existing with respect to any Other SUBI, any Other SUBI
Portfolio, the UTI or the UTI Portfolio shall be enforceable against such Other SUBI Portfolio or
the UTI Portfolio only, as applicable, and not against the Transaction SUBI or any Transaction SUBI
Assets, (c) except to the extent required by law, UTI Assets or SUBI Assets with respect to any
SUBI (other than the Transaction SUBI) shall not be subject to the claims, debts, liabilities,
expenses or obligations arising from or with respect to the Transaction SUBI, in respect of such
claim, (d)(i) no creditor or holder of a claim relating to the Transaction SUBI or the Transaction
SUBI Portfolio shall be entitled to maintain any action against or recover any assets allocated to
the UTI or the UTI Portfolio or any Other SUBI or the assets allocated thereto, and (ii) no
creditor or holder of a claim relating to the UTI, the UTI Portfolio or any SUBI other than the
Transaction SUBI or any SUBI Assets other than the Transaction SUBI Portfolio shall be entitled to
maintain any action against or recover any assets allocated to the Transaction SUBI, and (e) any
purchaser, assignee or pledgee of an interest in the Transaction SUBI or the Transaction SUBI
Certificate, must, prior to or contemporaneously with the grant of any such assignment, pledge or
security interest, (i) give to the Origination Trust a non-petition covenant substantially similar
to that set forth in Section 6.9 of the Origination Trust Agreement, and (ii) execute an
agreement for the benefit of each holder, assignee or pledgee from time to time of the UTI or UTI
Certificate and any Other SUBI or Other SUBI Certificate to release all claims to the assets of the
Origination Trust allocated to the UTI and each Other SUBI Portfolio and, in the

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event that such release is not given effect, to fully subordinate all claims it may be deemed
to have against the assets of the Origination Trust allocated to the UTI Portfolio and each Other
SUBI Portfolio.

     Section 13.7 No Petition; Release of Claims.

     With respect to each Bankruptcy Remote Party, each party hereto (and each holder and pledgee
of the Transaction SUBI, by virtue of its acceptance of such SUBI or pledge thereof) agrees that,
prior to the date which is one year and one day after payment in full of all obligations under each
Financing, (i) no party hereto shall authorize such Bankruptcy Remote Party to commence a voluntary
winding-up or other voluntary case or other Proceeding seeking liquidation, reorganization or other
relief with respect to such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency
or other similar law now or hereafter in effect in any jurisdiction or seeking the appointment of
an administrator, a trustee, receiver, liquidator, custodian or other similar official with respect
to such Bankruptcy Remote Party or any substantial part of its property or to consent to any such
relief or to the appointment of or taking possession by any such official in an involuntary case or
other Proceeding commenced against such Bankruptcy Remote Party, or to make a general assignment
for the benefit of any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii)
none of the parties hereto shall commence or join with any other Person in commencing any
Proceeding against such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation
or insolvency law or statute now or hereafter in effect in any jurisdiction.

     Section 13.8 Tax Matters.

     Each of the Initial Beneficiary, the UTI Trustee, the Delaware Trustee, the SUBI Trustee and
any holder or pledgee of the Transaction SUBI (including the Issuer and the Indenture Trustee,
respectively) agree that for federal, state and local income, franchise and/or value added tax
purposes it shall not treat this Transaction SUBI Supplement as creating or constituting a trust,
partnership, association taxable as a corporation or any other type of separate entity (and will
report for such purposes in a consistent manner therewith). Instead, each of such parties agrees,
and will consistently report, that for federal, state and local income, franchise and/or value
added tax purposes the Origination Trust holds the Transaction SUBI Portfolio and each asset
therein as a mere agent of the Issuer. Each such party further agrees that the Origination Trust
is acting as holder of record title to the Transaction SUBI Portfolio, including the Transaction
Vehicles, solely for the benefit of, and as agent and nominee of, the Issuer, and shall not hold
itself out or act in a manner inconsistent with it acting merely as agent and nominee.

     Section 13.9 ENTIRE AGREEMENT.

     THIS TRANSACTION SUBI SUPPLEMENT AND THE OTHER TRANSACTION DOCUMENTS EXECUTED AND DELIVERED IN
CONNECTION HEREWITH REPRESENT THE FINAL AGREEMENT BETWEEN THE PARTIES HERETO AND THERETO AND MAY
NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS OR SUBSEQUENT ORAL AGREEMENTS OF THE
PARTIES. THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG THE PARTIES.

10

 

     Section 13.10 Submission to Jurisdiction; Waiver of Jury Trial.

     Each of the parties hereto hereby irrevocably and unconditionally:

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

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

     (c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 13.3 of this
Transaction SUBI Supplement;

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

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

     Section 13.11 Form 10-D Filings. So long as the Transferor is filing Exchange Act
Reports with respect to the Issuer, no later than each Payment Date, the Origination Trustees shall
notify the Transferor of any Form 10-D Disclosure Item with respect to the Origination Trustees,
together with a description of any such Form 10-D Disclosure Item in form and substance reasonably
acceptable to the Transferor.

     Section 13.12 Form 8-K Filings. So long as the Transferor is filing Exchange Act
Reports with respect to the Issuer, the Origination Trustees shall promptly notify the Transferor,
but in no event later than five (5) Business Days after its occurrence, of any Reportable Event of
which a Responsible Officer of the Origination Trustees has actual knowledge (other than a
Reportable Event described in clause (a) or (b) of the definition thereof as to
which the Transferor or the Servicer has actual knowledge). The Origination Trustees shall be
deemed to have actual knowledge of any such event to the extent that it relates to the Origination
Trustees in their individual capacity or any action by the Origination Trustees under this
Transaction SUBI Supplement or the Origination Trust Agreement.

     Section 13.13 Indemnification. (a) U.S. Bank and/or Wilmington Trust Company, as
applicable, shall indemnify the Transferor, each Affiliate of the Transferor or each Person who
controls any of such parties (within the meaning of Section 15 of the Securities Act and Section 20
of the Exchange Act) and the respective present and former directors, officers, employees and

11

 

agents of each of the foregoing, and shall hold each of them harmless from and against any
losses, damages, penalties, fines, forfeitures, legal fees and expenses and related costs,
judgments, and any other costs, fees and expenses that any of them may sustain arising out of or
based upon:

     (i) (A) any untrue statement of a material fact contained in any information provided in
writing by U.S. Bank or Wilmington Trust Company to the Transferor or its affiliates under
Sections 13.11 or 13.12 (such information, the “Provided Information”), or
(B) the omission to state in the Provided Information a material fact required to be stated in the
Provided Information, or necessary in order to make the statements therein, in the light of the
circumstances under which they were made, not misleading; provided, by way of clarification, that
clause (B) of this paragraph shall be construed solely by reference to the related
information and not to any other information communicated in connection with a sale or purchase of
securities, without regard to whether the Provided Information or any portion thereof is presented
together with or separately from such other information; or

     (ii) any failure by U.S. Bank or Wilmington Trust Company to deliver any information, report,
or other material when and as required under Sections 13.11 or 13.12.

     (b) In the case of any failure of performance described in clause (a)(ii) of this
Section, U.S. Bank and/or Wilmington Trust Company, as applicable, shall promptly reimburse the
Transferor for all costs reasonably incurred in order to obtain the information, report or other
material not delivered as required by U.S. Bank or Wilmington Trust Company.

     (c) Notwithstanding anything to the contrary contained herein, in no event shall U.S. Bank or
Wilmington Trust Company be liable for special, indirect or consequential damages of any kind
whatsoever, including but not limited to lost profits, even if U.S. Bank or Wilmington Trust
Company has been advised of the likelihood of such loss or damage and regardless of the form of
action.

     Section 13.14 Several Obligations. The obligations of U.S. Bank, Wilmington Trust
Company and the Origination Trustees under Sections 13.11, 13.12 and 13.13
above are separate and not joint obligations of each such Person, and in no event shall such
Persons have any liability for the acts or omissions of any other Person.

[SIGNATURES ON NEXT PAGE]

12

 

     IN WITNESS WHEREOF, the parties hereto have caused this Transaction SUBI Supplement to be duly
executed by their respective officers as of the day and year first above written.

	 	 	 	 	 
	 	VW CREDIT, INC.,

as Settlor and Initial Beneficiary

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	U.S. BANK NATIONAL ASSOCIATION,

as Administrative Trustee, UTI Trustee

[and SUBI Trustee]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-1

 

	 	 	 	 	 

Wilmington Trust Company, acting in its capacity as Delaware Trustee, hereby acknowledges its
agreement to be bound by the provisions set forth in Sections 13.11, 13.12 and
13.13 of this Transaction SUBI Supplement.

	 	 	 	 	 
	 	WILMINGTON TRUST COMPANY,

as Delaware Trustee

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-2

 

	 	 	 	 	 

SCHEDULE 1

Transaction SUBI Supplement

20[  ]-[  ]

DESCRIPTION OF TRANSACTION UNITS

[delivered electronically to the Indenture Trustee]

I-1

 

EXHIBIT A

FORM OF TRANSACTION SUBI CERTIFICATE

VW CREDIT LEASING, LTD.

TRANSACTION
SPECIAL UNIT OF BENEFICIAL INTEREST
20[  ]-[  ]
 CERTIFICATE

evidencing an exclusive undivided 100% beneficial ownership interest in all Transaction SUBI
Assets (as defined below).

(This Certificate does not represent an obligation of, or an interest in, VW Credit, Inc. or
any of its affiliates (other than the Origination Trust (as defined below)).)

Number Transaction SUBI-20[  ]-[  ]

     THIS CERTIFIES THAT                                          is the registered owner of a 100%
nonassessable, fully-paid, exclusive undivided interest in the Transaction SUBI Portfolio (such
interest, a “Transaction SUBI”) of VW Credit Leasing, Ltd., a Delaware statutory trust (the
“Origination Trust”) formed by VW Credit, Inc., a Delaware corporation, as settlor
(“VCI” or, in its capacity as settlor thereunder, and, together with any successor or
assign, the “Settlor”), Wilmington Trust Company, a Delaware banking corporation, as
Delaware trustee (the “Delaware Trustee”), and U.S. Bank National Association (f/k/a U.S.
Bank Trust National Association), as administrative trustee (the “Administrative Trustee”)
and UTI trustee (the “UTI Trustee”). The Origination Trust was created pursuant to a Trust
Agreement dated as of June 2, 1999 (as modified, supplemented, or amended from time to time, the
“Agreement”) among VCI as the Settlor and as the sole initial beneficiary (in such
capacity, and, together with any successor or permitted assign, the “Initial Beneficiary”),
the UTI Trustee, the Administrative Trustee and the Delaware Trustee, as supplemented for purposes
hereof by that certain Transaction SUBI Supplement 20[ ]-[ ] to Origination Trust Agreement dated
as of [ ], [ ] (as amended, modified or supplemented from time to time, the “Transaction SUBI
Supplement”) among the Settlor, the Initial Beneficiary, the UTI Trustee, the Administrative
Trustee and U.S. Bank National Association, as the SUBI Trustee (the “SUBI Trustee”;
together with the UTI Trustee, the Administrative Trustee and the Delaware Trustee, the
“Origination Trustees”). To the extent not otherwise defined herein, the capitalized terms
herein have the meanings set forth in the Agreement.

     This Certificate is the duly authorized certificate issued under the Agreement and the
Transaction SUBI Supplement and designated as “VW Credit Leasing, Ltd. Transaction Special Unit of
Beneficial Interest 20[ ]-[ ] Certificate” (the “Transaction SUBI Certificate”). This
Transaction SUBI Certificate is issued under and is subject to the terms, provisions and conditions
of the Agreement and the Transaction SUBI Supplement, to which Agreement the holder of this
Transaction SUBI Certificate by virtue of the acceptance hereof assents and by which such holder is
bound. Also to be issued under the Agreement are various other series of Certificates, the first
designated as “VW Credit Leasing, Ltd. Undivided Trust Interest Certificates” (the “Undivided
Trust Interest Certificates”), and the others each designated as

A-1

 

“VW Credit Leasing, Ltd. Special Unit of Beneficial Interest Certificates” (the “SUBI
Certificates” and, together with the Undivided Trust Interest Certificates, the
“Certificates”). The Undivided Trust Interest Certificates, taken together, evidence an
exclusive undivided interest in the assets of the Origination Trust, other than SUBI Assets (each
as defined in the Agreement); each other series of SUBI Certificates, taken together, will evidence
an exclusive undivided interest in a separate SUBI Portfolio other than the Transaction SUBI
Portfolio.

     The Certificates do not represent an obligation of, or an interest in, the Settlor, any
Origination Trustee or any of their respective affiliates (other than the Origination Trust). A
copy of the Agreement may be examined during normal business hours at the principal office of the
Settlor or any Origination Trustee, and at such other places, if any, designated by the Settlor or
any Origination Trustee, by the holder hereof upon request.

     By accepting this Certificate, the holder hereof releases (or fully subordinates, but only to
the extent such release is not given effect) any claim in respect of this Certificate to any
proceeds or assets of the Origination Trust and to all of the assets of the Origination Trust other
than those from time to time included within the Transaction SUBI Portfolio (the “Transaction
SUBI Assets”) and those proceeds or assets derived from or earned by the Transaction SUBI
Assets.

     Prior to due presentation of this Certificate for registration of a permitted transfer, the
Origination Trustees, the certificate registrar and any of their respective agents may treat the
Person or entity in whose name this Certificate is registered as the owner hereof for the purpose
of receiving distributions and for all other purposes, and, except as provided for in the
Agreement, neither the Origination Trustees, the certificate registrar nor any such agent shall be
affected by any notice to the contrary.

     The holder of this Certificate covenants and agrees that prior to the date which is one year
and one day after the date upon which all obligations under each Financing have been paid in full,
it will not institute against, or join any other Person in instituting against, the Origination
Trust, any Special Purpose Entity, or any general partner of any Special Purpose Entity that is a
partnership, any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceeding or
other Proceedings under any federal or state bankruptcy or similar law.

     No bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or other
proceedings under any federal or state bankruptcy, insolvency or similar law shall be instituted by
the Origination Trust without the unanimous consent of all Origination Trustees and
Certificateholders hereunder. A SUBI Trustee shall not so consent unless directed to do so by the
holder of the applicable SUBI, and the Delaware Trustee shall not so consent unless directed to do
so by all of the Certificateholders.

     Unless this Certificate shall have been executed by an authorized officer of the
Administrative Trustee and the SUBI Trustee, by manual signature, this Certificate shall not
entitle the holder hereof to any benefit under the Agreement or be valid for any purpose.

A-2

 

     IN WITNESS WHEREOF, the Administrative Trustee and the SUBI Trustee on behalf of the
Origination Trust and not in their individual capacities have caused this Transaction SUBI
Certificate to be duly executed.

	 	 	 	 	 
	Dated: 	VW CREDIT LEASING, LTD.

 	 
	 	By:  	U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but solely as Administrative
Trustee and SUBI Trustee
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

A-3EX-10.7

EXHIBIT 10.7

[EXECUTION COPY]

 

VW CREDIT LEASING, LTD.

AND

VW CREDIT, INC.

AMENDED AND RESTATED SERVICING AGREEMENT

Dated As of December 21, 2000

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	PAGE	 
	 
	 	 	 	 	 	 
	RECITALS
	 	 	 	 	1	 
	ARTICLE I DEFINITIONS
	 
	 	 	 	 	 	 
	Section 1.1.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	ARTICLE II
	 	ADMINISTRATION AND SERVICING OF USER LEASES	 	 	 	 
	 
	 	 	 	 	 	 
	Section 2.1.
	 	Servicer to Act as Servicer	 	 	5	 
	Section 2.2.
	 	Collection of Monthly Lease Payments and Remittances;
Application of Proceeds	 	 	6	 
	Section 2.3.
	 	Records	 	 	7	 
	Section 2.4.
	 	Collection and Application of Security Deposits	 	 	7	 
	Section 2.5.
	 	Servicing Compensation; Fees, Costs and Expenses	 	 	8	 
	Section 2.6.
	 	Enforcement of User Leases; Repossession and Sale
of Leased Vehicles	 	 	8	 
	Section 2.7.
	 	Servicer to Act on Behalf of Trust	 	 	9	 
	Section 2.8.
	 	Third Party Claims	 	 	9	 
	Section 2.9.
	 	Insurance Policies	 	 	10	 
	Section 2.10.
	 	Servicer Not to Resign; Assignment	 	 	10	 
	 
	 	 	 	 	 	 
	ARTICLE III SERVICER TERMINATION WITH RESPECT TO UTI
	 
	 	 	 	 	 	 
	Section 3.1.
	 	Termination of Servicer By UTI Holder With Respect
to UTI	 	 	11	 
	 
	 	 	 	 	 	 
	ARTICLE IV MISCELLANEOUS
	 
	 	 	 	 	 	 
	Section 4.1.
	 	Termination of Agreement	 	 	11	 
	Section 4.2.
	 	Amendment	 	 	11	 
	Section 4.3.
	 	Governing Law	 	 	12	 
	Section 4.4.
	 	Notices	 	 	12	 
	Section 4.5.
	 	Severability	 	 	12	 
	Section 4.6.
	 	Binding Effect	 	 	12	 
	Section 4.7.
	 	Article and Section Headings	 	 	13	 
	Section 4.8.
	 	Execution in Counterparts	 	 	13	 
	Section 4.9.
	 	Rights Cumulative	 	 	13	 
	Section 4.10.
	 	Further Assurances	 	 	13	 
	Section 4.11.
	 	Third-Party Beneficiaries	 	 	13	 
	Section 4.12.
	 	No Waiver	 	 	13	 
	Section 4.13.
	 	Non-Petition Covenant	 	 	14	 
	Section 4.14.
	 	Series Liabilities	 	 	14	 
	Section 4.15.
	 	Limitation of Liability	 	 	14	 

i

 

AMENDED AND RESTATED SERVICING AGREEMENT

     AMENDED AND RESTATED SERVICING AGREEMENT, dated as of December 21, 2000 (as
it may be further amended, supplemented or modified, the “Agreement”), between
VW CREDIT LEASING, LTD., a Delaware business trust (the “Trust”), and VW CREDIT,
INC., a Delaware corporation (hereinafter, together with its successors and
assigns, “VCI” or, in its capacity as servicer hereunder, the “Servicer”).

RECITALS

     A. This Agreement is being entered into to amend and restate that certain
Servicing Agreement, dated as of June 22, 1999, between the Trust and VCI.

     B. VCI, as Settlor and Initial Beneficiary (the “Settlor” and the “Initial
Beneficiary”, respectively), U.S. Bank Trust National Association, a national
banking association with its principal place of business in Chicago, Illinois,
as UTI Trustee and Administrative Trustee (the “UTI Trustee” and the
“Administrative Trustee”, respectively), and Wilmington Trust Company, as
Delaware Trustee (the “Delaware Trustee”), have entered into that certain Trust
Agreement dated as of June 2, 1999 (the same, as amended, supplemented or
modified and in effect from time to time, the “Trust Agreement”), pursuant to
which VCI and the Trustees formed the Trust for the purpose of taking
assignments and conveyances of and holding and dealing in various Trust Assets
in accordance with the Trust Agreement.

     C. The Trustees, on behalf of the Trust and at the direction of VCI, which
also is the initial beneficiary of the Trust, intend to create and issue from
time to time to or upon the order of VCI various special units of beneficial
interest in the Trust (“SUBIs”), whose beneficiaries generally will be entitled
to certain specified components of the net cash flow arising from designated
portfolios of Trust Assets owned by the Trust, and which SUBIs may be used in
connection with various Financings (as defined in the Trust Agreement).

     D. The parties desire to enter into this Agreement to provide for, among
other things, the servicing of the Trust Assets (including those evidenced by
the SUBIs) by the Servicer.

     E. The parties acknowledge that, in connection with one or more Financings,
it may be necessary or desirable to enter into supplemental agreements hereto,
including one or more SUBI Servicing Agreement Supplements, providing for
further specific servicing obligations with respect to each Financing.

     NOW THEREFORE, in consideration of the premises and the mutual covenants
herein contained, the parties hereto agree as follows:

Servicing Agreement

 

 

ARTICLE I.

DEFINITIONS

     SECTION 1.1. DEFINITIONS.

     For all purposes of this Agreement, except as otherwise expressly provided
or unless the context otherwise requires, (a) unless otherwise defined herein,
all capitalized terms shall have the meanings attributed to them in the Trust
Agreement, (b) the capitalized terms defined in this Article have the meanings
assigned to them in this Article and include (i) all genders and (ii) the plural
as well as the singular, (c) all references to words such as “herein”, “hereof”
and the like shall refer to this Agreement as whole and not to any particular
article or section within this Agreement, (d) the term “include” and all
variations thereon shall mean “include without limitation”, (e) the term “or”
shall include “and/or”, and (f) any reference herein to a “Trustee, acting on
behalf of the Trust,” or words of similar import, shall be deemed to mean the
applicable Trustee, acting on behalf of the Trust and all applicable
beneficiaries of the Trust.

     “Administrative Trustee” has the meaning set forth in the Recitals.

     “Business Trust Statute” has the meaning set forth in the Trust Agreement.

     “Certificate of Title” has the meaning set forth in the Trust Agreement.

     “Charged-off Lease” means a User Lease which has been written off by the
Servicer in accordance with its Customary Servicing Practices for writing off
lease contracts.

     “Collections” means all monthly lease payments on any User Lease,
Liquidation Proceeds in respect of any Vehicle and any other payments, receipts
or Recoveries (including any residual value insurance proceeds and other
insurance proceeds) by or on behalf of any End User or otherwise with respect to
any User Lease or Leased Vehicle other than (i) Supplemental Servicing Fees,
(ii) payments allocable to sales, use or other taxes (which shall be collected
by the Servicer and remitted to the applicable governmental authority or used to
reimburse the Servicer for payment of such amounts in accordance with Customary
Servicing Practices), (iii) payments allocable to premiums for force-placed
insurance policies purchased by the Servicer on behalf of any End User (which
shall be collected by the Servicer and remitted to the applicable insurance
company (or if such amounts were paid by the Servicer, to the Servicer) in
accordance with the Customary Servicing Practices), (iv) payments allocable to
fines for parking violations incurred by any End User but assessed to the Trust
as the owner of the related Leased Vehicle (which shall be collected by the
Servicer and remitted to the applicable governmental authority (or if such
amounts were paid by the Servicer, to the Servicer) in accordance with Customary
Servicing Practices), and (v) rebates of insurance premiums with respect to the
cancellation of any insurance policy.

     “Customary Servicing Practices” means the customary practices of the
Servicer with respect to Leased Vehicles and User Leases held by the Origination
Trust, without regard to whether such Leased Vehicles and User Leases have been
identified and allocated into a SUBI Portfolio, as such practices may be amended
from time to time.

     “Dealer” has the meaning set forth in the Trust Agreement.

					
	 	 	 	 	 
	 
	 	2
	 	Servicing Agreement

 

 

     “Dealer Agreement” means a Dealer Agreement as amended, modified or
supplemented from time to time, entered into between VCI or the Trust and a
Dealer providing for the Dealer, (i) to arrange retail vehicle leases that will
be entered into by the Trustee, or (ii) acting as the originator of retail
vehicle leases that will be acquired by the Trust, and in accordance with which,
the title to the related leased vehicles will in either case be acquired by the
Trust at prices determined as provided for in such agreement.

     “Delaware Trustee” has the meaning set forth in the Recitals.

     “End User” means each Person who is the lessee under a User Lease.

     “Filings” has the meaning set forth in Section 2.7.

     “Financing” has the meaning set forth in the Trust Agreement.

     “Initial Beneficiary” has the meaning set forth in the Recitals.

     “Leased Vehicles” has the meaning set forth in the Trust Agreement.

     “Liquidation Proceeds” means, with respect to any Leased Vehicle, the
proceeds received by the Servicer in connection with the sale or other
disposition of such Leased Vehicle, net of any and all out-of-pocket costs and
expenses incurred by the Servicer in connection with such sale or other
disposition, including without limitation, all repossession, auction, painting,
repair, legal and any and all other similar liquidation, collection and
refurbishment costs and expenses.

     “Maturity Date” means, with respect to any User Lease, the date on which
such User Lease is scheduled to terminate, as such date may be extended pursuant
to Section 2.2(b)(ii).

     “Obligee” means each Person who is the lessor under a User Lease or the
assignee thereof, including the Trust.

     “Person” has the meaning set forth in the Trust Agreement.

     “Purchase Price” means, for any Leased Vehicle and related User Lease, the
amount paid by or on behalf of the Trust for such Leased Vehicle and related
User Lease.

     “Recoveries” means, with respect to any User Lease or Leased Vehicle, the
proceeds (other than Liquidation Proceeds) received by the Servicer after any
default under the related User Lease, net of any and all out-of-pocket costs and
expenses incurred by the Servicer in connection with such defaulted User Lease,
including without limitation, all repossession, auction, painting, repair,
legal, bankruptcy and any and all other similar liquidation, collection and
refurbishment costs and expenses.

     “Registrar of Titles” has the meaning set forth in the Trust Agreement.

     “Security Deposit” means, with respect to any User Lease, the refundable
security deposit (if any) specified in such User Lease.

					
	 	 	 	 	 
	 
	 	3
	 	Servicing Agreement

 

 

     “Servicer” has the meaning set forth in the preamble.

     “Servicing Fee” has the meaning specified in Section 2.5.

     “Settlor” has the meaning set forth in the Recitals.

     “SUBI” has the meaning set forth in the Recitals.

     “SUBI Asset” has the meaning set forth in the Trust Agreement.

     “SUBI Portfolio” has the meaning set forth in the Trust Agreement.

     “SUBI Servicing Agreement Supplement” means any supplement or amendment to
this Agreement entered into from time to time to accommodate the creation and
issuance of a particular SUBI and to specify any special responsibilities or
obligations that the Servicer may be required to undertake in connection
therewith.

     “SUBI Supplement” means any supplement or amendment to the Trust Agreement
executed from time to time in connection with the creation and issuance of a
particular SUBI.

     “SUBI Trustee” means, as to each SUBI, the separate trustee appointed by
the Initial Beneficiary for each SUBI.

     “Supplemental Servicing Fees” means any late fees, NSF check fees,
disposition fees, purchase option fees and other administration fees or similar
charges (including any fees payable in connection with or pursuant to an
extension agreement) paid by any End User pursuant to a User Lease.

     “Trust” has the meaning set forth in the preamble.

     “Trust Agreement” has the meaning set forth in the Recitals.

     “Trust Asset” means any asset of any type owned by the Trust.

     “Trustees” means the Delaware Trustee, the UTI Trustee, the Administrative
Trustee and any SUBI Trustee.

     “User Lease” has the meaning set forth in the Trust Agreement.

     “UTI” means the undivided trust interest in the Trust created pursuant to
the Trust Agreement.

     “UTI Certificate” has the meaning set forth in the Trust Agreement.

     “UTI Holder” means initially, VCI and any other registered holder of the
UTI Certificate.

     “UTI Portfolio” means, as to the UTI, that collection of User Leases,
Leased Vehicles and other associated Trust Assets allocated to the UTI from time
to time.

					
	 	 	 	 	 
	 
	 	4
	 	Servicing Agreement

 

 

     “UTI Trustee” has the meaning set forth in the Recitals.

     “VCI” has the meaning set forth in the preamble.

ARTICLE II

ADMINISTRATION AND SERVICING OF USER LEASES

     SECTION 2.1. SERVICER TO ACT AS SERVICER.

     (a) As agent for and subject to the supervision, direction and control of
the Trust as set forth in the Trust Agreement, the Servicer shall manage the
Trust and shall service, administer and collect under the User Leases and the
other Trust Assets in accordance with the terms of this Agreement, and shall
have full power and authority, acting alone and subject only to the specific
requirements and prohibitions of this Agreement, to do any and all things in
connection with such servicing, administering and collecting that it may
reasonably deem necessary or desirable. The duties of the Servicer shall
include, among other things, acquiring vehicles and originating leases on behalf
of the Trust, collecting and posting payments, responding to inquiries of End
Users on the User Leases, investigating delinquencies, sending payment
statements and reporting required tax information (if any) to End Users,
disposing of returned vehicles, paying costs of disposition of Leased Vehicles
related to Charged-off Leases, administering the User Leases, including, but not
limited to, executing powers of attorney to be delivered to End Users for the
limited purpose of obtaining license plates and fulfilling other state
requirements for registration of the Leased Vehicles, obtaining a new
Certificate of Title to a Leased Vehicle in another jurisdiction to the extent
required by law, making other modifications to the User Leases (in accordance
with Customary Servicing Practices), approving repairs to Leased Vehicles and
endorsing the related insurance settlement checks for repair work, accounting
for collections and preparing and filing all required tax returns (if any) of
the Trust.

     Without limiting the generality of the foregoing, the Servicer hereby
expressly agrees to perform and carry out on behalf of the Trust, all of the
obligations on the part of the Obligee under the User Leases and is hereby
authorized and empowered by the Trust to execute and deliver, in its own name or
on behalf of the Trust, or both of them, as the case may be, any and all
instruments of satisfaction, extension or cancellation, or of partial or full
release or discharge, and all other comparable instruments, with respect to the
User Leases or the Leased Vehicles.

     The Servicer shall cause the Trust to (i) apply for and maintain (or cause
to be applied for and maintained) all licenses, permits, authorizations and
other governmental items necessary and appropriate for the Trust to acquire,
hold and manage Trust Assets as contemplated by the Trust Agreement in each
jurisdiction where the ownership of its assets or the nature of its operations
would require it to maintain such licenses, permits, authorizations or other
governmental items, (ii) file (or cause to be filed) all notices, reports and
other required filings in each jurisdiction where the location of its assets or
the nature of its operations would require the Trust to make such filing, and
(iii) pay or cause to be paid all applicable taxes and fees properly due and
owing in connection with the Trust’s activities.

     If the Servicer shall commence a legal proceeding to enforce a User Lease,
the Trust shall thereupon be deemed to have automatically assigned, solely for
the purpose of collection on

					
	 	 	 	 	 
	 
	 	5
	 	Servicing Agreement

 

 

behalf of the Trust, its interest in such User Lease and the related Leased
Vehicle to the Servicer to the extent necessary for the purposes of
participating in such proceeding. If in any enforcement suit or legal proceeding
it is held that the Servicer may not enforce a User Lease on the grounds that it
is not the real party in interest or a holder entitled to enforce such User
Lease, the Trust shall, at the expense and direction of the Servicer, take steps
to enforce the User Lease, including bringing suit in the Trust’s name. The
Trust shall furnish the Servicer with any powers of attorney and other documents
necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder.

     The Servicer shall acquire or enter into on behalf of the Trust, in its
ordinary course of business, User Leases with End Users approved by the
Servicer. The Servicer agrees that its origination, underwriting and servicing
of the User Leases for the benefit of the Trust shall be carried out in
accordance with Customary Servicing Practices with respect to similar types of
vehicles.

     (b) (i) The Servicer shall continue to maintain or enter into on behalf of
the Trust, in the ordinary course of its business, Dealer Agreements with
Dealers selected by the Servicer from time to time in its reasonable discretion
(together with such supplemental agreements as shall be necessary to permit the
Trust to enforce any rights against the Dealers). The Servicer shall execute on
behalf of the Trust all approved User Leases arranged by the Dealer. The
Servicer shall take such action as is necessary for each Certificate of Title
for each Leased Vehicle to show the owner of such Leased Vehicle as “VW Credit
Leasing, Ltd.” or the name of a Trustee (other than the Delaware Trustee) using
the quoted phrase or such other similar phrase as will satisfy the Registrar of
Titles in each relevant jurisdiction, or such other designation(s) as the
Servicer shall determine. The obligations of the Servicer pursuant to this
Section 2.1(b)(i) shall survive any partial or complete termination of the
Servicer pursuant hereto for any User Lease entered into prior to the
termination of this Agreement.

     (ii) Upon the satisfaction by the Dealer of any requirements entitling the
Dealer to payment with respect to the Leased Vehicle (and the related User
Lease, if originated by the Dealer)(including without limitation the execution
and delivery thereby of all instruments of assignment of such User Lease and
Leased Vehicle to the Trust), the Servicer shall remit to such Dealer the
Purchase Price.

     Any payment by VCI to a Dealer to acquire a Leased Vehicle or a related
User Lease shall constitute a contribution by VCI to the Trust in respect of
VCI’s ownership interest in the UTI followed by the purchase by the Trust of
each Leased Vehicle, related User Lease and the related Trust Assets from the
Dealer, and the UTI shall immediately thereafter be deemed to represent the
entire beneficial interest in such Leased Vehicle, the related User Lease and
any related Trust Assets (whether such User Lease was originated by a Dealer or
by the Trust).

     SECTION 2.2. COLLECTION OF MONTHLY LEASE PAYMENTS AND REMITTANCES; APPLICATION OF PROCEEDS.

     (a) The Servicer shall use commercially reasonable efforts to (i) collect
all payments required under the terms and provisions of each User Lease; and
(ii) cause each End User to

					
	 	 	 	 	 
	 
	 	6
	 	Servicing Agreement

 

 

make all payments in respect of the User Lease to which such End User is a party
or otherwise obligated.

     (b) Consistent with the foregoing, the Servicer may in its discretion (i)
waive any late payment charge or other charge that would constitute a
Supplemental Servicing Fee, and (ii) extend the Maturity Date of any User Lease
consistent with Customary Servicing Practices.

     (c) As to any other funds received by the Servicer with respect to any
Trust Asset:

     (i) With respect to any such funds relating to a SUBI Asset, the
Servicer shall deposit such funds as set forth in the appropriate SUBI
Servicing Agreement Supplement; and

     (ii) With respect to any such funds relating to any Trust Asset other
than a SUBI Asset, the Servicer shall pay such funds as directed by the UTI
Holder.

     (d) The Servicer shall, on behalf of the UTI Trustee and at the direction
of the Initial Beneficiary, from time to time, in accordance with the Trust
Agreement or the applicable SUBI Supplement thereto, identify and allocate on
the books and records of the Trust certain User Leases and/or Leased Vehicles
into one or more SUBI Portfolios, either upon the initial creation of such SUBI
or periodically following its creation.

     (e) The Servicer shall account to the applicable Trustee for the UTI
Portfolio and each SUBI Portfolio of Trust Assets separately and in accordance
with any supplement or amendment to this Agreement entered into with respect to
such UTI Portfolio or SUBI Portfolio, as the case may be.

     SECTION 2.3. RECORDS.

     The Servicer shall maintain or cause to be maintained such computer and/or
manual records with respect to Trust Assets and all Collections relating thereto
in accordance with Customary Servicing Practices with respect to similar types
of vehicles.

     SECTION 2.4. COLLECTION AND APPLICATION OF SECURITY DEPOSITS.

     The Servicer shall retain any Security Deposit remitted to it or the Trust
as agent and bailee for the Trust, and shall apply the proceeds of such Security
Deposits in accordance with applicable law, its Customary Servicing Practices
and the User Leases, including but not limited to using the Security Deposit in
respect of any User Lease for the payment of any amount resulting from the
related End User’s default or failure to pay all amounts required to be paid
under such User Lease or resulting from excess mileage or excess wear and tear
to the related Leased Vehicle. In the event that any User Lease becomes a
Charged-off Lease or, if earlier, the related Leased Vehicle is repossessed,
then the related Security Deposit, to the extent permitted by such User Lease
and applicable law, shall thereby become a Collection. Each Security Deposit,
after deduction for amounts applied towards the payment of any amount resulting
from the related End User’s default or failure to pay any amounts required to be
paid under such User Lease or damage to the related Leased Vehicle, shall be
returned to the related End User by the

					
	 	 	 	 	 
	 
	 	7
	 	Servicing Agreement

 

 

Servicer; provided, however, that the Servicer may retain a Security Deposit
(including any interest thereon) until the End User has repaid all other charges
owed under such User Lease.

     SECTION 2.5. SERVICING COMPENSATION; FEES, COSTS AND EXPENSES.

     (a) As compensation for the performance of its obligations under this
Agreement and subject to the terms of this Section and the terms of any
applicable SUBI Servicing Agreement Supplement, the Servicer shall be entitled
to receive from the Trust, a fee (the “Servicing Fee”) equal to:

     (i) With respect to each SUBI Portfolio, the amount set forth in the
related SUBI Servicing Agreement Supplement.

     (ii) With respect to the UTI Portfolio, such amount as shall be agreed
from time to time between the holder of the UTI and the Servicer.

     (iii) In addition to the foregoing, the Servicer shall be entitled to
retain as additional compensation, for each UTI Portfolio or SUBI
Portfolio, all Supplemental Servicing Fees.

     The Servicer shall pay all expenses of the Trust and all expenses incurred
by it in connection with its servicing activities hereunder, including the costs
of any Trustee, any separate trustee or co-trustee appointed by a Trustee
pursuant to Section 6.6 of the Trust Agreement, and shall not be entitled to
reimbursement of such expenses. Notwithstanding anything contained in the
foregoing sentence to the contrary, the Servicer shall not be liable to pay
losses with respect to Trust Assets.

     (b) As additional servicing compensation, the Servicer also shall be
entitled to the earnings from the investment of Security Deposits retained as
and to the extent permitted by applicable law and the applicable User Leases and
to the extent not required to be paid to the End Users.

     SECTION 2.6. ENFORCEMENT OF USER LEASES; REPOSSESSION AND SALE OF LEASED VEHICLES.

     The Servicer shall use commercially reasonable efforts (consistent with its
Customary Servicing Practices with respect to similar types of vehicles) to
enforce the provisions of the User Leases and to repossess or otherwise take
possession of the Leased Vehicle related to any User Lease that shall have
terminated or expired or that the Servicer shall have determined (in accordance
with its Customary Servicing Practices) to be in default.

     The Servicer shall, in accordance with the standards set forth in the
immediately preceding paragraph:

     (a) follow such practices and procedures as it shall deem necessary or
advisable in accordance with its Customary Servicing Practices in its servicing
of leases for automobiles, sports utility vehicles, light-duty trucks and other
vehicles, which may include reasonable efforts

					
	 	 	 	 	 
	 
	 	8
	 	Servicing Agreement

 

 

to realize upon any recourse to Dealers, consigning a Leased Vehicle to a motor
vehicle dealer for resale or selling a Leased Vehicle at public or private sale;
and

     (b) sell or otherwise dispose of each Leased Vehicle that is so repossessed
and, if the User Lease is in default, shall commence and prosecute any legal
proceedings in respect of such User Lease (and the related Leased Vehicle) in
its own name or in the name of the Trust.

     SECTION 2.7. SERVICER TO ACT ON BEHALF OF TRUST.

     (a) In order to facilitate the servicing of the User Leases by the
Servicer, the Trust hereby appoints the Servicer as its agent and bailee to
retain possession of the User Leases, Certificates of Title and any other
related items that from time to time come into possession of the Servicer, and
the Servicer hereby accepts such appointment.

     (b) The Servicer shall identify from time to time all (i) periodic sales
and use tax or property (real or personal) tax reports, (ii) periodic renewals
of licenses and permits, (iii) periodic renewals of qualification to act as a
trust and a business trust and (iv) other governmental filings, registrations or
approvals (collectively, “Filings”) arising with respect to or required of the
Trust, including such licenses, permits, and other Filings as are required for
the Trust to originate and accept assignments of User Leases and to be
identified as the owner of Leased Vehicles on their Certificates of Title, as
contemplated by Section 2.1(a)(i). The Servicer shall also identify any surety
bonds or other ancillary undertakings required of the Trust in respect of any
Filing. The Servicer shall timely prepare and file, or cause to be filed, with
the cooperation of the Trustees, on behalf of the Trust with the appropriate
Person each Filing and each such ancillary undertaking. In connection with this
Section 2.7(b), the Trust grants to the Servicer the authority to, and will,
from time to time, execute and deliver to the Servicer any necessary power of
attorney as the Servicer may require in order to effect each such Filing and
ancillary undertaking. Should the Servicer at any time receive notice, or have
actual knowledge, of any non-compliance with any Filing requirement, it shall
promptly take all required action to rectify such noncompliance.

     (c) The Servicer agrees to indemnify, defend and hold harmless the Trust,
the Trustees and their respective agents (including without limitation any Trust
Agent) for (i) any and all liabilities, losses, damages and expenses that may be
incurred as a result of any negligent act or omission by the Servicer in
connection with any Trust Asset or this Agreement, and (ii) any claims by third
parties against the Trust. The obligations set forth in this Section 2.7(c)
shall survive the termination of this Agreement and the Trust Agreement or the
resignation or removal of the Servicer or any Trustee; provided, however, that
the provisions of this Section 2.7(c) shall not require any successor Servicer
appointed hereunder to indemnify any Person except with respect to the
negligence or misconduct of such successor Servicer in performing its duties
hereunder or the breach by such successor Servicer of this Agreement.

     SECTION 2.8. THIRD PARTY CLAIMS.

     The Servicer shall promptly notify VCI (in the event that VCI is not acting
as the Servicer hereunder) and the Trustees, on behalf of the Trust, upon its
learning that a claim of whatever kind that would be indemnified under Section
2.7.

					
	 	 	 	 	 
	 
	 	9
	 	Servicing Agreement

 

 

     SECTION 2.9. INSURANCE POLICIES.

     (a) The Servicer shall at all times have in effect, maintain and keep in
force for the benefit of the Trust, or cause the Trust to have in effect,
maintain and keep in force, insurance policies (which may be blanket policies
covering the Servicer, the Trust and some or all Affiliates of the Servicer)
with respect to the Trust Assets against such hazards, in such form and in such
amounts as follows:

     (i) Contingent and excess automobile liability insurance policies with
a nationally recognized insurance company with a rating of at least A- by
A.M. Best, with limits of no less than $1,000,000 per occurrence, covering
losses in the event that an End User’s primary insurance policy is not
collectible at the time of loss or that a liability claim exceeds the
policy limit of the End User’s primary insurance.

     (ii) Interim automobile liability insurance coverage with a nationally
recognized insurance company with a rating of at least A- by A.M. Best,
with limits of no less than $1,000,000 per occurrence, covering losses (i)
prior to the time that an End User’s primary insurance becomes effective
and (ii) after a User Lease has terminated.

     (iii) Umbrella excess liability insurance of not less than $25,000,000
with an insurer that has a rating of at least A- by A.M. Best. Such
coverage shall be on a per occurrence basis and over and above the coverage
provided by the policies described in paragraphs (i) and (ii) above. The
coverages of the umbrella excess liability policies shall be at least as
broad as the coverages as set forth in paragraphs (i) and (ii) above.

     (iv) All policies of insurance required to be maintained pursuant to
this section shall name the Trust as an additional insured (the “Additional
Insured”). Each policy shall expressly provide that all provisions thereof,
except liability for premiums (which shall be solely a liability of the
Servicer) and the limits of the insurer’s liability under the policy, shall
operate in the same manner as if there were a separate policy covering the
Additional Insured.

     SECTION 2.10. SERVICER NOT TO RESIGN; ASSIGNMENT.

     (a) Except as provided in Section 4.1(b), the Servicer shall not resign
from the duties and obligations hereby imposed on it as Servicer except upon
determination by its board of directors that by reason of change in applicable
legal requirements the continued performance by the Servicer of its duties as
Servicer under this Agreement would cause it to be in violation of such legal
requirements in a manner that would result in a material adverse effect on the
Servicer or its financial condition, said determination to be evidenced by
resolutions of the board of directors to such effect accompanied by an opinion
of counsel reasonably satisfactory to the Trustees, to such effect. No such
resignation shall become effective unless and until a new servicer is willing to
service the User Leases and enters into a servicing agreement with the Trust,
such agreement to have substantially the same provisions as this Agreement. The
Trust shall not unreasonably fail to consent to such a servicing agreement.

     (b) Subject to paragraph (c) of this Section, the Servicer may not assign
this Agreement or any of its rights, powers, duties or obligations hereunder;
provided, however, that

					
	 	 	 	 	 
	 
	 	10
	 	Servicing Agreement

 

 

the Servicer may assign this Agreement in connection with a consolidation,
merger, conveyance or transfer of substantially all of its assets without the
consent of any Person.

     (c) The Servicer may, at any time without notice or consent, delegate (i)
any or all duties under this Agreement to any Person more than 50% of the voting
securities of which are owned, directly or indirectly, by Volkswagen AG or any
successor thereto, or (ii) specific duties to sub-contractors who are in the
business of performing such duties; provided, however, that no such delegation
shall relieve the Servicer of its responsibility with respect to such duties and
the Servicer shall remain obligated and liable to the Trustees and the holders
of the UTI and the SUBIs for servicing and administering the Trust Assets in
accordance with this Agreement as if the Servicer alone were performing such
duties.

ARTICLE III

SERVICER TERMINATION WITH RESPECT TO UTI

     SECTION 3.1. TERMINATION OF SERVICER BY UTI HOLDER WITH RESPECT TO UTI.

     The UTI Holder may, upon written notice to the Servicer, terminate all or a
portion of the rights and powers of the Servicer with respect to the UTI under
this Agreement.

ARTICLE IV

MISCELLANEOUS

     SECTION 4.1. TERMINATION OF AGREEMENT.

     This Agreement shall, except as otherwise provided herein, terminate upon
the earliest of (a) the termination of the Trust; (b) the discharge of the
Servicer in accordance with the terms hereof; or (c) the mutual written
determination of the parties hereto. Upon termination of this Agreement, the
Servicer shall pay over to the Trust, or any other Person entitled thereto, all
monies held by the Servicer on behalf of the Trust pursuant to this Agreement.

     SECTION 4.2. AMENDMENT.

     (a) This Agreement may be amended from time to time in a writing signed by
the Trustees, on behalf of the Trust, and the Servicer. Any amendment affecting
particular Trust Assets allocated to a SUBI Portfolio need not be signed by any
Trustee which does not administer such particular Trust Assets. The consent of
the holders or pledgees of any SUBI Certificate shall not be required to amend
this Agreement except to the extent the interests of such holder or pledgee
would be adversely affected.

     (b) In particular, but without limiting the foregoing, this Agreement may
be amended by means of one or more SUBI Servicing Agreement Supplements in
connection with any Financings. Such supplemental agreements may provide, among
other things, for further specific servicing obligations relating to SUBI Assets
for the particular benefit of holders of related SUBIs. Such supplemental
agreements may permit the termination of this Agreement insofar as it applies to
such SUBI Assets upon the terms and conditions set forth therein; however, no
such supplemental agreement shall permit the termination of this Agreement
insofar as it applies to other Trust Assets except as provided herein.

					
	 	 	 	 	 
	 
	 	11
	 	Servicing Agreement

 

 

     (c) Any amendment or modification effected contrary to the provisions of
this Section shall be void.

     SECTION 4.3. GOVERNING LAW.

     THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE
PRINCIPLES OF CONFLICT OF LAWS.

     SECTION 4.4. NOTICES.

     All demands, notices and communications hereunder shall be in writing and
shall be delivered or mailed by registered or certified first-class United
States mail, postage prepaid, hand delivery, any prepaid courier service, or by
telecopier, and addressed in each case as follows: (a) if to the Servicer, VW
Credit, Inc., 3800 Hamlin Road, Auburn Hills, Michigan 48326, Attention:
Secretary; Facsimile: (248) 340-4794 and Attention: Treasurer; Facsimile (298)
340-5360, with copies to Mayer, Brown & Platt, 190 South LaSalle Street,
Chicago, Illinois 60603, Attention: Stuart M. Litwin; Facsimile: (312) 701-7711
(Confirmation Number: (312) 701-7373); (b) if to the UTI Trustee or
Administrative Trustee, U.S. Bank Trust National Association, One Illinois
Center, 111 East Wacker, Suite 3000, Chicago, Illinois 60601 Attention:
Corporate Trust Department; Facsimile: (312) 228-9401 (Confirmation Number:
(312) 228-9416); or (c) if to the Delaware Trustee, 1100 North Market Street,
Wilmington, Delaware 19890 Attention: Corporate Trust Administration; Facsimile:
(302) 651-8882. The Servicer or any Trustee may change its address for notices
hereunder by giving notice of such change to the other parties hereto and to the
parties to the Trust Agreement. All notices and demands shall be deemed to have
been given upon delivery or tender of delivery thereof to any officer of the
Person entitled to receive such notices and demands at the address of such
Person for notices hereunder.

     SECTION 4.5. SEVERABILITY.

     If one or more of the provisions of this Agreement shall be for any reason
whatever held invalid or unenforceable, such provisions shall be deemed
severable from the remaining covenants, agreements and provisions of this
Agreement, and such invalidity or unenforceability shall in no way affect the
validity or enforceability of such remaining covenants, agreements and
provisions, or the rights of any parties hereto. To the extent permitted by law,
the parties hereto waive any provision of law that renders any provision of this
Agreement invalid or unenforceable in any respect.

     SECTION 4.6. BINDING EFFECT.

     The provisions of this Agreement shall be binding upon and inure to the
benefit of the respective successors and permitted assigns of the parties
hereto, and all such provisions shall inure to the benefit of the Trust.

					
	 	 	 	 	 
	 
	 	12
	 	Servicing Agreement

 

 

     SECTION 4.7. ARTICLE AND SECTION HEADINGS.

     The article and section headings herein are for convenience of reference
only, and shall not limit or otherwise affect the meaning hereof.

     SECTION 4.8. EXECUTION IN COUNTERPARTS.

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

     SECTION 4.9. RIGHTS CUMULATIVE.

     All rights and remedies from time to time conferred upon or reserved to the
Trust, the Trustees (or any of them), on behalf of the Trust, or the Servicer or
to any or all of the foregoing are cumulative, and none is intended to be
exclusive of another. No delay or omission in insisting upon the strict
observance or performance of any provision of this Agreement, or in exercising
any right or remedy, shall be construed as a waiver or relinquishment of such
provision, nor shall it impair such right or remedy. Every right and remedy may
be exercised from time to time and as often as deemed expedient.

     SECTION 4.10. FURTHER ASSURANCES.

     Each party will do such acts, and execute and deliver to any other party
such additional documents or instruments as may be reasonably requested in order
to effect the purposes of this Agreement and to better assure and confirm unto
the requesting party its rights, powers and remedies hereunder.

     SECTION 4.11. THIRD-PARTY BENEFICIARIES.

     This Agreement will inure to the benefit of and be binding upon the parties
hereto and each of the beneficiaries of the Trust (including each pledgee or
assignee of the UTI), who shall be considered to be third-party beneficiaries
hereof. Except as otherwise provided in this Agreement, no other Person will
have any right or obligation hereunder.

     SECTION 4.12. NO WAIVER.

     No waiver by any party hereto of any one or more defaults by any other
party or parties in the performance of any of the provisions of this Agreement
shall operate or be construed as a waiver of any future default or defaults,
whether of a like or different nature. No failure or delay on the part of any
party in exercising any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right,
power or remedy preclude any other or further exercise thereof or the exercise
of any other right, power or remedy. The remedies provided for herein are
cumulative and are not exclusive of any remedies that may be available to any
party hereto at law, in equity or otherwise.

					
	 	 	 	 	 
	 
	 	13
	 	Servicing Agreement

 

 

     SECTION 4.13. NON-PETITION COVENANT.

     The Servicer covenants and agrees that prior to the date which is one year
and one day after the date upon which all obligations under each Financing has
been paid in full, the Servicer will not institute against, or join any other
person in instituting against the Trust, any Special Purpose Entity or any
general partner of a Special Purpose Entity that is a partnership, any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding or
other proceedings under any federal or state bankruptcy or similar law. This
Section shall survive the termination of this Agreement or the resignation or
removal of the Servicer under this Agreement.

     SECTION 4.14. SERIES LIABILITIES.

     It is expressly understood and agreed by the Servicer, and all persons
claiming through the Servicer, that the Trust is a series trust pursuant to
Sections 3804 and 3806(b)(2) of the Business Trust Statute. As such, separate
and distinct records shall be maintained for the UTI Portfolio and each SUBI
Portfolio and the Trust Assets associated with the UTI Portfolio and each SUBI
Portfolio shall be held and accounted for separately from the other assets of
the Trust. The debts, liabilities, obligations and expenses incurred, contracted
for or otherwise existing with respect to the UTI and each SUBI shall be
enforceable against the UTI Portfolio or the related SUBI Portfolio only, and
not against the Trust Assets generally or the assets of any other SUBI
Portfolio.

     SECTION 4.15. LIMITATION OF LIABILITY.

     It is expressly understood and agreed by the parties hereto that (a) this
Agreement is executed and delivered by U.S. Bank Trust, National Association,
not individually or personally but solely as Administrative Trustee and UTI
Trustee of the Trust under the Trust Agreement, in the exercise of the powers
and authority conferred and vested in it, (b) each of the representations,
undertakings and agreements herein made on the part of either the Administrative
Trustee, the UTI Trustee or the Trust is made and intended not as personal
representations, undertakings and agreements by U.S. Bank Trust National
Association but is made and intended for the purpose of binding only the Trust,
(c) nothing herein contained shall be construed as creating any liability on
U.S. Bank Trust, National Association, individually or personally, to perform
any covenant either expressed or implied contained herein, all such liability,
if any, being expressly waived by the parties hereto and by any Person claiming
by, through or under the parties hereto and (d) under no circumstances shall
U.S. Bank Trust, National Association be personally liable for the payment of
any indebtedness or expenses of the Trust or be liable for the breach or failure
of any obligation, representation, warranty or covenant made or undertaken by
the Administrative Trustee, UTI Trustee or the Trust under this Agreement.

					
	 	 	 	 	 
	 
	 	14
	 	Servicing Agreement

 

 

     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers duly authorized as of the day and
year first above written.

	 	 	 	 	 
	 	VW CREDIT, INC.,

as Servicer

 	 
	 	By:  	/s/ Frank Witter
 	 
	 	 	Name:  	Frank Witter 	 
	 	 	Title:  	Treasurer 	 
	 
	 	 	 
	 	By:  	     /s/ Kevin Kelly
 	 
	 	 	Name:  	Kevin Kelly 	 
	 	 	Title:  	President 	 
	 
	 	VW CREDIT LEASING, LTD.

 	 
	 	By:  	U.S. Bank Trust National Association,
 	 
	 	 	as Administrative Trustee and UTI Trustee 	 
	 	 	 	 
	 	By:  	     /s/ Melissa A. Rosal
 	 
	 	 	Name:  	Melissa A. Rosal 	 
	 	 	Title:  	Vice President 	 
	 

					
	 	 	 	 	 
	 
	 	S-1
	 	Servicing Agreement

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