Document:

EX-10.4

 Exhibit 10.4 

Execution Version 
  

 
 ACAR LEASING LTD., 

as the Titling Trust, 
 GM
FINANCIAL, 
 as Servicer, 
 APGO
TRUST, as Settlor, 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Collateral Agent and Indenture Trustee 
  

 
 2015-1 SERVICING
SUPPLEMENT 
 Dated as of February 1, 2015 
  

 
  

 

 Exhibit 10.4 

TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
		
	ARTICLE I DEFINITIONS AND INTERPRETIVE PROVISIONS	  	 	1	  
			
	 SECTION 1.1.
	 	 General Definitions
	  	 	1	  
		
	ARTICLE II SERVICING OF 2015-1 DESIGNATED POOL	  	 	2	  
			
	 SECTION 2.1.
	 	 Servicing of 2015-1 Designated Pool
	  	 	2	  
	 SECTION 2.2.
	 	 Identification of 2015-1 Lease Agreements and 2015-1 Leased Vehicles; Securitization Value
	  	 	2	  
	 SECTION 2.3.
	 	 Accounts
	  	 	2	  
	 SECTION 2.4.
	 	 General Provisions Regarding Accounts
	  	 	4	  
	 SECTION 2.5.
	 	 Reallocation and Repurchase of 2015-1 Lease Agreements and 2015-1 Leased Vehicles; Purchase of Matured Vehicles
	  	 	5	  
	 SECTION 2.6.
	 	 2015-1 Designated Pool Collections
	  	 	7	  
	 SECTION 2.7.
	 	 Servicing Compensation; Expenses
	  	 	7	  
	 SECTION 2.8.
	 	 Third Party Claims
	  	 	8	  
	 SECTION 2.9.
	 	 Reporting by the Servicer; Delivery of Certain Documentation; Inspection
	  	 	8	  
	 SECTION 2.10.
	 	 Annual Independent Accountant’s Report
	  	 	9	  
	 SECTION 2.11.
	 	 Servicer Defaults; Termination of the Servicer
	  	 	10	  
	 SECTION 2.12.
	 	 Representations and Warranties
	  	 	12	  
	 SECTION 2.13.
	 	 Custody of Lease Documents
	  	 	13	  
	 SECTION 2.14.
	 	 Reserve Account
	  	 	13	  
	 SECTION 2.15.
	 	 Liability of Successor Servicer
	  	 	13	  
	 SECTION 2.16.
	 	 Merger or Consolidation of, or Assumption of Obligations of the Servicer
	  	 	14	  
	 SECTION 2.17.
	 	 Resignation of the Servicer
	  	 	14	  
	 SECTION 2.18.
	 	 Separate Existence
	  	 	15	  
	 SECTION 2.19.
	 	 Like Kind Exchange Program; Pull Ahead Program
	  	 	16	  
		
	ARTICLE III MISCELLANEOUS	  	 	16	  
			
	 SECTION 3.1.
	 	 Termination of 2015-1 Servicing Supplement
	  	 	16	  
	 SECTION 3.2.
	 	 Amendment
	  	 	17	  
	 SECTION 3.3.
	 	 GOVERNING LAW
	  	 	17	  
	 SECTION 3.4.
	 	 Relationship of 2015-1 Servicing Supplement to Other Trust Documents
	  	 	17	  
	 SECTION 3.5.
	 	 [Reserved]
	  	 	17	  
	 SECTION 3.6.
	 	 Notices
	  	 	17	  
	 SECTION 3.7.
	 	 Severability of Provisions
	  	 	17	  
	 SECTION 3.8.
	 	 Binding Effect
	  	 	18	  
	 SECTION 3.9.
	 	 Table of Contents and Headings
	  	 	18	  

  
 i 

							
	 SECTION 3.10.
		 Counterparts
		 	18	  
	 SECTION 3.11.
		 Further Assurances
		 	18	  
	 SECTION 3.12.
		 Third-Party Beneficiaries
		 	18	  
	 SECTION 3.13.
		 No Petition
		 	18	  
	 SECTION 3.14.
		 Limitation of Liability
		 	18	  
	 SECTION 3.15.
		 Execution of Securities and Exchange Commission Filings
		 	19	  

 EXHIBITS 
  

					
	 Exhibit A – Form of Servicer Report
		 	A-1	  

  
 ii 

 Exhibit 10.4 

2015-1 SERVICING SUPPLEMENT, dated as of February 1, 2015 (as the same may be amended, restated, supplemented or otherwise modified from
time to time, this “2015-1 Servicing Supplement” or this “Agreement”), among ACAR Leasing Ltd., a Delaware statutory trust (the “Titling Trust”), AmeriCredit Financial Services, Inc. d/b/a GM
Financial, a Delaware corporation (“GM Financial”), as servicer (in such capacity, the “Servicer”), APGO Trust (“APGO”), a Delaware statutory trust, as settlor of the Titling Trust (in such
capacity, the “Settlor”), and Wells Fargo Bank, National Association (“Wells Fargo”), a national banking association, as collateral agent (in such capacity, the “Collateral Agent”) and indenture
trustee (the “Indenture Trustee”). 
 RECITALS 

WHEREAS, pursuant to an Amended and Restated Trust Agreement, dated as of January 31, 2011 (the “Titling Trust
Agreement”), between the Settlor and Wilmington Trust Company, as Owner Trustee, Administrative Trustee and Delaware Trustee, the Titling Trust was created to, among other things, take assignments and conveyances of and hold in trust
various assets (the “Trust Assets”); 
 WHEREAS, the Titling Trust, the Servicer, the Settlor and the Collateral Agent,
have entered into a Second Amended and Restated Servicing Agreement, dated as of May 23, 2013 (as the same may be further amended, restated, supplemented or otherwise modified from time to time, the “Basic Servicing
Agreement”), which provides for, among other things, the servicing of the Trust Assets by the Servicer; and 
 WHEREAS, the parties
hereto acknowledge that in connection with the execution of the 2015-1 Exchange Note Supplement, dated as of February 1, 2015 (as the same may be amended, restated, supplemented or otherwise modified from time to time, the “2015-1
Exchange Note Supplement”) to the Amended and Restated Credit and Security Agreement, dated as of May 23, 2013 (as the same may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit and
Security Agreement”), each among the Titling Trust, as borrower, GM Financial, as lender and Servicer, and Wells Fargo, as Administrative Agent and Collateral Agent, pursuant to which an Exchange Note (the “2015-1 Exchange
Note”) will be created, it is necessary and desirable to enter into a supplement to the Basic Servicing Agreement to provide for, among other things, the servicing of the Trust Assets allocated to the 2015-1 Designated Pool. 

NOW, THEREFORE, in consideration of the mutual agreements herein contained, and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 

DEFINITIONS AND INTERPRETIVE PROVISIONS 

SECTION 1.1. General Definitions. Capitalized terms used in this 2015-1 Servicing Supplement that are not otherwise defined herein
shall have the meanings assigned to them in Appendix 1 to the 2015-1 Exchange Note Supplement or, if not defined therein, in Appendix A 

 
to the Credit and Security Agreement. The “Other Definitional Provisions” set forth in Section 1.2 of the Basic Servicing Agreement are incorporated by reference into this 2015-1
Servicing Supplement. 
 ARTICLE II 

SERVICING OF 2015-1 DESIGNATED POOL 

SECTION 2.1. Servicing of 2015-1 Designated Pool. The parties hereto agree that the Servicer shall service, administer and make
collections on the 2015-1 Designated Pool in accordance with the terms and provisions of the Basic Servicing Agreement, as amended and supplemented by the terms and provisions of this 2015-1 Servicing Supplement. 

SECTION 2.2. Identification of 2015-1 Lease Agreements and 2015-1 Leased Vehicles; Securitization Value. On the Closing Date, the
Servicer shall identify as 2015-1 Exchange Note Assets the Lease Agreements and the Leased Vehicles relating to such Lease Agreements listed on the Schedule of 2015-1 Lease Agreements and 2015-1 Leased Vehicles attached as Schedule A to the 2015-1
Exchange Note Supplement. The Servicer shall calculate the Securitization Value for each 2015-1 Lease Agreement as of the Cutoff Date. 

SECTION 2.3. Accounts. 

(a) The Indenture Trustee shall establish and maintain, at all times during the term of the Indenture, an Eligible Deposit Account in the name
of and under the control of the Indenture Trustee for the benefit of the Noteholders (said account being called the “2015-1 Exchange Note Collections Account” and being initially identified as “GM Financial 2015-1 Exchange Note
Collections Account”). Deposits to and withdrawals from the 2015-1 Exchange Note Collections Account shall be made as set forth in the 2015-1 Servicing Agreement, the 2015-1 Exchange Note Supplement and the Indenture. 

(b) The Indenture Trustee shall establish and maintain, at all times during the term of the Indenture, an Eligible Deposit Account in the name
of and under the control of the Indenture Trustee for the benefit of the Noteholders (said account being called the “Indenture Collections Account” and being initially identified as “GM Financial 2015-1 Indenture Collections
Account”). Deposits to and withdrawals from the 2015-1 Indenture Collections Account shall be made as set forth in the 2015-1 Exchange Note Supplement and the Indenture. 

(c) The Indenture Trustee shall establish and maintain, at all times during the term of the Indenture, an Eligible Deposit Account in the name
of and under the control of the Indenture Trustee for the benefit of the Noteholders (said account being called the “Note Payment Account” and being initially identified as “GM Financial 2015-1 Note Payment Account”).
Deposits to and withdrawals from the Note Payment Account shall be made as set forth in the Indenture and the Note Purchase Agreement. 

(d) The Indenture Trustee shall establish and maintain, at all times during the term of the Indenture, an Eligible Deposit Account in the name
of and under control of the Indenture Trustee for the benefit of the Noteholders (said account being called the “Reserve Account” and being initially identified as “GM Financial 2015-1 Reserve Account”). 

  
 2 

 (e) All monies deposited from time to time in the Accounts pursuant to this 2015-1 Servicing
Supplement and the other Program Documents and the Accounts shall be held by the Indenture Trustee as part of the Indenture Collateral and shall be applied to the purposes herein and therein provided. If any Account shall cease to be an Eligible
Deposit Account, the Indenture Trustee shall, as necessary, assist the Servicer in causing such Account to be moved to an institution at which it shall be an Eligible Deposit Account. 

(f) Notwithstanding Section 3.1(f) of the Basic Servicing Agreement, if, at any time, any of the Accounts ceases to be an Eligible
Deposit Account, the Servicer shall within thirty (30) days (or such longer period as to which the Rating Agencies rating any securities backed by the related Exchange Note may consent) establish a new Account as an Eligible Deposit Account and
shall transfer any cash and/or any investments to such new Account. 
 (g) The Indenture Trustee or other Person holding the Accounts shall
be the “Securities Intermediary” with respect to the Accounts. If the Securities Intermediary in respect of the Accounts is not the Indenture Trustee, the Servicer shall obtain the express agreement of such Person to the obligations
of the Securities Intermediary set forth in this Section 2.3(g). The Securities Intermediary agrees that: 
 (i) Each of
the Accounts is an account to which “financial assets” within the meaning of Section 8-102(a)(9) (“Financial Assets”) of the UCC in effect in the State of New York will be credited; 

(ii) All securities or other property underlying any Financial Assets credited to any Account shall be registered in the name
of the Securities Intermediary, endorsed to the Securities Intermediary or in blank or credited to another securities account maintained in the name of the Securities Intermediary and in no case will any Financial Asset credited to an Account be
registered in the name of the Issuer, payable to the order of the Issuer or specially endorsed to the Issuer; 
 (iii) All
property delivered to the Securities Intermediary pursuant to the 2015-1 Servicing Agreement and the Indenture will be promptly credited to the applicable Account; 

(iv) Each item of property (whether investment property, security, instrument or cash) credited to an Account shall be treated
as a Financial Asset; 
 (v) If at any time the Securities Intermediary shall receive any order from the Indenture Trustee
directing transfer or redemption of any Financial Asset relating to an Account, the Securities Intermediary shall comply with such entitlement order without further consent by the Issuer or the Servicer; 

(vi) Each Account shall be governed by the laws of the State of New York, regardless of any provision of any other agreement.
For purposes of the UCC, New York shall be deemed to be the Securities Intermediary’s jurisdiction and the Accounts (as well as the “securities entitlements” (as defined in Section 8-102(a)(17) of the UCC) related thereto) shall
be governed by the laws of the State of New York; 

  
 3 

 (vii) The Securities Intermediary has not entered into, and until termination of
the Indenture, will not enter into, any agreement with any other Person relating to the Accounts and/or any Financial Assets credited thereto pursuant to which it has agreed to comply with entitlement orders (as defined in Section 8-102(a)(8)
of the UCC) of such other Person and the Securities Intermediary has not entered into, and until the termination of the Indenture will not enter into, any agreement with the Issuer purporting to limit or condition the obligation of the Securities
Intermediary to comply with entitlement orders as set forth in Section 2.4; and 
 (viii) Except for the claims and
interest of the Indenture Trustee and the Issuer in the Accounts, the Securities Intermediary knows of no claim to, or interest in, the Accounts or in any Financial Asset credited thereto. If any other Person asserts any Lien, encumbrance, or
adverse claim (including any writ, garnishment, judgment, warrant of attachment, execution or similar process) against the Accounts or in any Financial Asset carried therein, the Securities Intermediary will promptly notify the Indenture Trustee,
the Noteholders and the Issuer thereof. 
 The Indenture Trustee shall possess all right, title and interest in all funds on deposit from
time to time in the Accounts and in all proceeds thereof, and shall be the only Person authorized to originate entitlement orders in respect of the Accounts. 

SECTION 2.4. General Provisions Regarding Accounts. 

(a) So long as no Event of Default shall have occurred and be continuing, all or a portion of the funds in the 2015-1 Exchange Note
Collections Account, the Indenture Collections Account, the Note Payment Account and the Reserve Account shall be invested at the direction of the Servicer in Permitted Investments that mature no later than the Business Day prior to the next Payment
Date in the Collection Period following the Collection Period during which the investment is made. All income or other gain from investments of monies deposited in the 2015-1 Exchange Note Collections Account, the Indenture Collections Account and
the Reserve Account during a Collection Period shall be deposited into the 2015-1 Exchange Note Collections Account, the Indenture Collections Account or the Reserve Account, as applicable, on the related Payment Date, and any loss resulting from
such investments shall be charged to 2015-1 Exchange Note Collections Account, the Indenture Collections Account or the Reserve Account, as applicable. The Titling Trust will be the tax owner of the 2015-1 Exchange Note Collections Account and all
investment earnings on the 2015-1 Exchange Note Collections Account will be taxable to the Titling Trust. The Issuer or, if there is a single Issuer Trust Certificateholder, such Issuer Trust Certificateholder will be the tax owner of the Indenture
Collections Account and all investment earnings on the Indenture Collections Account will be taxable to the Issuer or such Issuer Trust Certificateholder, as the case may be. The Issuer or, if there is a single Issuer Trust Certificateholder, such
Issuer Trust Certificateholder will be the tax owner of the Reserve Account and all investment earnings on the Reserve Account will be taxable to the Issuer or such Issuer Trust Certificateholder, as the case may be. 

The Indenture Trustee will not be directed to make any investment of any funds or to sell any Permitted Investment held in the 2015-1 Exchange
Note Collections Account, the Indenture Collections Account and the Reserve Account unless the security interest Granted and perfected 

  
 4 

 
in the 2015-1 Exchange Note Collections Account, the Indenture Collections Account and the Reserve Account will continue to be perfected in such Permitted Investment or the proceeds of such sale,
in either case without any further action by any Person. Except as directed by the Note Purchaser after the occurrence and during the continuance of an Event of Default, no such Permitted Investment shall be sold prior to maturity. 

(b) If (i) the Servicer shall have failed to give investment directions for funds on deposit in the 2015-1 Exchange Note Collections
Account, the Indenture Collections Account and the Reserve Account to the Indenture Trustee by 12:00 noon, New York City time (or such other time as may be agreed by the Indenture Trustee), on any Business Day, (ii) an Event of Default shall
have occurred and be continuing but the Notes shall not have been declared due and payable pursuant to Section 5.2 of the Indenture, or (iii) if the Notes shall have been declared due and payable following an Event of Default but amounts
collected or receivable from the Issuer Trust Estate are being applied as if there had not been such a declaration, then the Indenture Trustee shall hold funds on deposit in the 2015-1 Exchange Note Collections Account, the Indenture Collections
Account and the Reserve Account uninvested. 
 (c) Subject to Section 6.1(c) of the Indenture, the Indenture Trustee shall not in any
way be held liable by reason of any insufficiency in the 2015-1 Exchange Note Collections Account, the Indenture Collections Account and the Reserve Account resulting from any loss on any Permitted Investment included therein except for losses
attributable to the Indenture Trustee as obligor as a result of the Indenture Trustee’s failure to make payments on such Permitted Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee,
in accordance with their terms. 
 SECTION 2.5. Reallocation and Repurchase of 2015-1 Lease Agreements and 2015-1 Leased Vehicles;
Purchase of Matured Vehicles. 
 (a) In the event the Servicer (i) grants an extension with respect to any 2015-1 Lease Agreement
that is inconsistent with the Customary Servicing Practices or that extends the term of such 2015-1 Lease Agreement past the Exchange Note Final Scheduled Payment Date, (ii) modifies any 2015-1 Lease Agreement to change the related Contract
Residual Value or Monthly Payment, or (iii) is notified the Titling Trust no longer owns any 2015-1 Leased Vehicle, except to the extent that any such modification listed in clauses (i) and (ii) of this subsection 2.5(a) is required
by law or court order, the Servicer shall, on the Deposit Date related to the Collection Period in which such extension was granted or modification was made, as applicable, cause the reallocation of the affected 2015-1 Lease Agreement and the
related 2015-1 Leased Vehicle to the Lending Facility Pool by depositing to the 2015-1 Exchange Note Collections Account an amount equal to the Repurchase Payment with respect to such 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle.

 (b) Upon discovery by the Servicer, the Owner Trustee, the Indenture Trustee or the Depositor that any representation or warranty
contained in Section 2.12 was incorrect in respect of any 2015-1 Lease Agreement or the related 2015-1 Leased Vehicle as of the Cutoff Date in a manner that materially adversely affects the interest of the Issuer or the Noteholders in such
2015-1 Lease Agreement or such 2015-1 Leased Vehicle, the entity discovering such incorrectness (if other than the Servicer) shall give prompt written notice to the Servicer. By no 

  
 5 

 
later than the end of the Collection Period including the date that is two (2) months after the date on which the Servicer discovers or is notified of such incorrectness, the Servicer shall
cure in all material respects the circumstance or condition with respect to which the representation or warranty was incorrect as of the Cutoff Date. If the Servicer does not cure such circumstance or condition by such date, then the Servicer shall
cause the reallocation of the affected 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle to the Lending Facility Pool by depositing to the 2015-1 Exchange Note Collections Account on the Deposit Date relating to the next succeeding
Payment Date an amount equal to the Repurchase Payment with respect to such 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle. The Indenture Trustee will (i) notify the Servicer, GM Financial and the Depositor, as soon as practicable
and in any event within five (5) Business Days and in the manner set forth for providing notices hereunder, of all demands or requests communicated (in writing or orally) to the Trustee for the reallocation of any 2015-1 Lease Agreement and the
related 2015-1 Leased Vehicle pursuant to this clause (b), (ii) promptly upon request by the Servicer, GM Financial or the Depositor, provide to them any other information reasonably requested to facilitate compliance by them with Rule 15Ga-1
under the Exchange Act and Items 1104(e) and 1121(c) of Regulation AB, and (iii) if requested by the Servicer, GM Financial or the Depositor, provide a written certification no later than fifteen (15) days following any calendar quarter or
calendar year that the Trustee has not received any reallocation demands for such period, or if reallocation demands have been received during such period, that the Trustee has provided all the information reasonably requested under clause
(ii) above with respect to such demands. In no event will the Trustee or the Issuer have any responsibility or liability in connection with any filing required to be made by a securitizer under the Exchange Act or Regulation AB. 

(c) Notwithstanding the provisions of Section 2.6(b) of the Basic Servicing Agreement, if the Servicer discovers a breach, or is provided
with any notice of a breach pursuant to such section, regarding a Lease Agreement or Leased Vehicle that is a 2015-1 Lease Agreement or 2015-1 Leased Vehicle on the date that such breach is discovered or such notice is provided, the Servicer shall
be obligated to take the actions described in such Section 2.6(b) by no later than the Payment Date following the Collection Period in which the related breach is discovered or the related notice is provided (rather than by the Payment Date
following the Collection Period that ends at least thirty (30) days after the Servicer discovers or is notified of such breach). 
 (d)
The Servicer shall provide written notice to the Indenture Trustee and the Noteholders of each reallocation to the Lending Facility Pool of a 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle pursuant to Section 2.5(a) or
(b) that was made during a Collection Period in the Servicer Report that is delivered for such Collection Period. 
 (e) The Servicer
may purchase any 2015-1 Leased Vehicle that becomes a Matured Vehicle pursuant to Section 2.6(f) of the Basic Servicing Agreement for a purchase price equal to the Contract Residual Value of the related 2015-1 Lease Agreement. 

(f) The obligation of the Servicer under this Section 2.5 shall survive any termination of the Servicer hereunder. 

  
 6 

 (g) For so long as the Notes are Outstanding, the Servicer will not be permitted to reallocate
any 2015-1 Lease Agreements and related 2015-1 Leased Vehicles from the 2015-1 Designated Pool to the Lending Facility Pool except in accordance with the terms of this Section 2.5 and Section 3.1 of the 2015-1 Exchange Note Supplement.

 (h) If a Lessee changes its domicile and such change would reasonably be expected to result in the Titling Trust doing business in a
jurisdiction in which it is not licensed and authorized to conduct business in the manner contemplated by the Program Documents, then on the Payment Date related to the Collection Period that ends at least thirty (30) days after the Servicer
discovers or is notified of such change, the Servicer shall purchase such 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle by either (i) depositing to the Indenture Collections Account an amount equal to the Repurchase Payment, or
(ii) appropriately segregating and designating an amount equal to the Repurchase Payment on its records, pending application thereof pursuant to 2015-1 Servicing Agreement. 

SECTION 2.6. 2015-1 Designated Pool Collections. 

(a) The Servicer shall, with respect to all 2015-1 Designated Pool Collections, from time to time determine the amount of such 2015-1
Designated Pool Collections and during each Collection Period shall deposit all such 2015-1 Designated Pool Collections in the 2015-1 Exchange Note Collections Account when required pursuant to clause (b). 

(b) Notwithstanding Section 2.7(b) of the Basic Servicing Agreement, the Servicer shall remit, or shall cause its agent to remit, all
2015-1 Designated Pool Collections to the 2015-1 Exchange Note Collections Account by the close of business on the second (2nd) Business Day after receipt thereof or, in the case of any
2015-1 Designated Pool Collections received by the Servicer or such agent for which the Servicer or such agent, as applicable, does not have all Payment Information by the close of business on such second (2nd) Business Day, by the close of business on the day on which all such Payment Information is received. Pending deposit into the 2015-1 Exchange Note Collections Account, 2015-1 Designated Pool
Collections may be employed by the Servicer at its own risk and for its own benefit and need not be segregated from its own funds. 

SECTION 2.7. Servicing Compensation; Expenses. As compensation for the performance of its obligations under the 2015-1 Servicing
Agreement, on each Payment Date the Servicer shall be entitled to receive a fee for its performance during the immediately preceding Collection Period or, with respect to the first Payment Date, the period from the 2015-1 Cutoff Date to such Payment
Date (the “Designated Pool Servicing Fee”) in accordance with Article V of the 2015-1 Exchange Note Supplement in an amount equal the sum of (x) to the product of (i) one-twelfth (1/12th) (or, with respect to the first Payment Date, 58/360), times (ii) the Servicing Fee Rate, times (iii) the Aggregate Securitization Value as of the opening of business on
the first day of such Collection Period, plus (y) any Administrative Charges collected on the 2015-1 Lease Agreements and 2015-1 Leased Vehicles and any other expenses reimbursable to the Servicer. 

  
 7 

 SECTION 2.8. Third Party Claims. In addition to the requirements set forth in
Section 2.14 of the Basic Servicing Agreement, upon learning of a Claim or Lien of whatever kind of a third party that would be likely to have a material adverse effect on the interests of the Depositor or the Issuer with respect to the 2015-1
Exchange Note Assets, the Servicer shall immediately notify the Depositor, the Indenture Trustee and the Noteholders of any such Claim or Lien. 

SECTION 2.9. Reporting by the Servicer; Delivery of Certain Documentation; Inspection. 

(a) (i) On each Determination Date, prior to 12:00 p.m. (Central time), the Issuer shall cause the Servicer to deliver to the Indenture
Trustee, the Titling Trust and the Collateral Agent, a Servicer Report with respect to the next Payment Date and the related Collection Period, and (ii) no later than the twenty-second
(22nd) day of each month (or the preceding Business Day), prior to 12:00 p.m. (Central time), the Issuer shall cause the Servicer to deliver to the Rating Agencies, a Servicer Report with
respect to the next Payment Date and the related Collection Period. Notwithstanding Section 3.2(a) of the Basic Servicing Agreement, the Servicer shall deliver such Servicer Reports in accordance with this Section 2.9 until the date on
which the Notes are no longer Outstanding. 
 (b) In addition to the report with respect to the 2015-1 Exchange Note which the Servicer is
obligated to deliver pursuant to Section 3.1(c) of the Basic Servicing Agreement, the Servicer shall deliver to the Depositor, the Indenture Trustee and the Titling Trust, on or before March 31 (or ninety (90) days after the end of
the Servicer’s fiscal year, if other than December 31) of each year, beginning March 31, 2016, an Officer’s Certificate, dated as of March 31 (or other applicable date) of such year, stating that (i) a review of the
activities of the Servicer during the preceding twelve (12) month period (or such other period in the case of the first such report as shall have elapsed from the Closing Date to the date of the first such Officer’s Certificate) and of its
performance under the 2015-1 Servicing Agreement has been made under such officer’s supervision, and (ii) to such officer’s knowledge, based on such review, the Servicer has fulfilled all its obligations under the 2015-1 Servicing
Agreement throughout such period, or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof. 

(c) The Servicer will deliver to the Issuer, on or before March 31 of each year, beginning on March 31, 2016, a report regarding the
Servicer’s assessment of compliance with certain minimum servicing criteria during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. 

(d) To the extent required by Regulation AB, the Servicer will cause any affiliated servicer or any other party deemed to be participating in
the servicing function pursuant to Item 1122 of Regulation AB to provide to the Issuer, on or before March 31 of each year, beginning on March 31, 2016, a report regarding such party’s assessment of compliance with certain
minimum servicing criteria during the immediately preceding calendar year, as required under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB. 

  
 8 

 (e) Wells Fargo Bank, National Association acknowledges, in its capacity as Collateral Agent
under this 2015-1 Servicing Supplement and in its capacity as Indenture Trustee under the Program Documents, that to the extent it is deemed to be participating in the servicing function pursuant to Item 1122 of Regulation AB, it will take any
action reasonably requested by the Servicer to ensure compliance with the requirements of Section 2.9(d) and Section 2.10(b) hereof and with Item 1122 of Regulation AB. Such required documentation will be delivered to the Servicer by
March 15 of each calendar year. 
 (f) The Servicer shall deliver copies of all reports, notices and certificates delivered by it
pursuant to the 2015-1 Servicing Agreement to the Depositor, the Indenture Trustee and the Titling Trust on the date or dates due, including any notice of material failure given pursuant to Section 2.2(a) of the Basic Servicing Agreement and
the Officer’s Certificate relating to the 2015-1 Exchange Note delivered by it pursuant to Section 2.9(b) of this 2015-1 Servicing Supplement. 

SECTION 2.10. Annual Independent Accountant’s Report. 

(a) The Servicer shall cause the cause a firm of nationally recognized independent certified public accountants (the “Independent
Accountants”), who may also render other services to the Servicer or its Affiliates, to deliver to the Indenture Trustee, the Owner Trustee and the Collateral Agent, on or before March 31 (or 90 days after the end of the Issuer’s
fiscal year, if other than December 31) of each year, beginning in March 31, 2016, a report with respect to the preceding calendar year, addressed to the board of directors of the Servicer, providing its attestation report on the servicing
assessment delivered pursuant to Section 2.9(c), including disclosure of any material instance of non-compliance, as required by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB. Such attestation will be in
accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act. 
 (b) Each party required to
deliver an assessment of compliance described in Section 2.9(d) shall cause Independent Accountants, who may also render other services to such party or its Affiliates, to deliver to the Indenture Trustee, the Owner Trustee, the Collateral
Agent and the Servicer, on or before March 31 (or 90 days after the end of the Issuer’s fiscal year, if other than December 31) of each year, beginning in March 31, 2016, a report with respect to the preceding calendar year,
addressed to the board of directors of such party, providing its attestation report on the servicing assessment delivered pursuant to Section 2.9(d), including disclosure of any material instance of non-compliance, as required by Rule 13a-18
and 15d-18 of the Exchange Act and Item 1122(b) of Regulation AB. Such attestation will be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act. 

(c) The Servicer shall cause the Independent Accountants to deliver to the Depositor, the Indenture Trustee, the Issuer and the Titling Trust,
on or before April 30 (or one-hundred and twenty (120) days after the end of the Servicer’s fiscal year, if other than December 31) of each year, beginning on April 30, 2016 with respect to the twelve (12) months ended
the immediately preceding December 31 (or other applicable date) (or such other period as shall have elapsed from the 2015-1 Closing Date to the date of such certificate (which period shall not be less than six (6) months)), a statement
(the “Accountants’ Report”) addressed to the Board of Directors of 

  
 9 

 
the Servicer, to the effect that such firm has audited the books and records of GM Financial, in which the Servicer is included as a consolidated subsidiary, and issued its report thereon in
connection with the audit report on the consolidated financial statements of GM Financial and that (i) such audit was made in accordance with generally accepted auditing standards, and accordingly included such tests of the accounting records
and such other auditing procedures as such firm considered necessary in the circumstances, and (ii) the firm is independent of the Servicer within the meaning of the Code of Professional Ethics of the American Institute of Certified Public
Accountants. 
 SECTION 2.11. Servicer Defaults; Termination of the Servicer. 

(a) Each of the following acts or occurrences constitutes a “Servicer Default” under the 2015-1 Servicing Agreement with
respect to the 2015-1 Exchange Note: 
 (i) any failure by the Servicer to deposit in the 2015-1 Exchange Note Collections
Account any required payment, any failure by the Servicer to make or cause the Titling Trust to make any required payments from the 2015-1 Exchange Note Collections Account on account of the 2015-1 Exchange Note or any failure of the Servicer to
make any required payment under any other Program Document, which failure continues unremedied for a period of five (5) Business Days after the earlier of the date on which (1) notice of such failure is given to the Servicer by the
Indenture Trustee, or (2) an Authorized Officer of the Servicer has actual knowledge of such failure; 
 (ii) any
failure by the Servicer duly to observe or to perform in any material respect any covenants or agreements of the Servicer set forth in the 2015-1 Servicing Agreement or any other Program Document (other than a covenant or agreement a default in the
observance or performance of which is elsewhere in this Section specifically dealt with), which failure shall materially and adversely affects the interests of the 2015-1 Secured Parties and shall continue unremedied for a period of sixty
(60) days after written notice of such failure is received by the Servicer from the Indenture Trustee or after discovery of such failure by the Servicer; 

(iii) any representation or warranty made or deemed made by the Servicer in the 2015-1 Servicing Agreement or in any other
Program Document or which is contained in any certificate, document or financial or other statement furnished at any time under or in connection herewith or therewith shall prove to have been incorrect in any material respect, and such incorrectness
has a material adverse effect on the interests of the 2015-1 Secured Parties or the Issuer which failure, if capable of being cured, has not been cured for a period of sixty (60) days after written notice of such breach is received by the
Servicer from the Indenture Trustee or after discovery of such breach by the Servicer; or 
 (iv) an Insolvency Event occurs
with respect to the Servicer. 
 (b) Promptly after having obtained knowledge of any Servicer Default, but in no event later than two
(2) Business Days thereafter, the Servicer shall deliver to the Indenture Trustee and the Noteholders, written notice thereof in an Officer’s Certificate, accompanied in each case by a description of the nature of the default and the
efforts of the Servicer to remedy the same. 

  
 10 

 (c) In addition to the provisions of Section 4.1(d) of the Basic Servicing Agreement, if a
Servicer Default shall have occurred and be continuing with respect to the 2015-1 Exchange Note, the Titling Trust shall, acting at the written direction of the Majority Noteholders, or, if there are no Notes Outstanding, the Titling Trust, acting
at the direction of Issuer Trust Certificateholder, by notice given to the Servicer, terminate the rights and obligations of the Servicer under the 2015-1 Servicing Agreement in accordance with such Section and the Indenture Trustee, acting at the
written direction of the Majority Noteholders, shall appoint a Successor Servicer to fulfill the obligations of the Servicer hereunder in respect of the 2015-1 Lease Agreements and 2015-1 Leased Vehicles. Any such Person shall accept its appointment
by a written assumption in a form acceptable to the Indenture Trustee. In the event the Servicer is removed as servicer of the 2015-1 Exchange Note Assets, (i) the Servicer shall deliver or cause to be delivered to or at the direction of the
Successor Servicer all Lease Documents with respect to the 2015-1 Lease Agreements and the 2015-1 Leased Vehicles that are then in the possession of the Servicer, (ii) the Servicer shall deliver or cause to be delivered to or at the direction
of the Successor Servicer all Security Deposits held by the Servicer with respect to the 2015-1 Exchange Note Assets, and (iii) the Servicer shall deliver to the Successor Servicer all servicing records directly maintained by the Servicer,
containing as of the close of business on the date of demand all of the data maintained by the Servicer, in computer format in connection with servicing the 2015-1 Exchange Note Assets. If no Person has accepted its appointment as Successor Servicer
when the predecessor Servicer ceases to act as Servicer in accordance with this Section 2.11, the Indenture Trustee, will, without further action, be automatically appointed the Successor Servicer. Notwithstanding the above, if the Indenture
Trustee is unwilling or legally unable to act as Successor Servicer, it may appoint, or petition a court of competent jurisdiction to appoint, an institution whose business includes the servicing of lease agreements and the related lease assets, as
Successor Servicer. The Indenture Trustee will be released from its duties and obligations as Successor Servicer on the date that a new servicer agrees to appointment as Successor Servicer hereunder. Any Successor Servicer shall be entitled to such
compensation as the Servicer would have been entitled to under this 2015-1 Servicing Supplement if the Servicer had not resigned or been terminated hereunder or such additional compensation as the Majority Noteholders and such Successor Servicer may
agree on. 
 (d) Notwithstanding the provisions of Section 4.1(f) of the Basic Servicing Agreement, with respect to any Servicer
Default related to the 2015-1 Exchange Note Assets, only the Indenture Trustee, acting at the written direction of the Majority Noteholders, or, if there are no Notes Outstanding, the Titling Trust, acting at the direction of the Issuer Trust
Certificateholder, may waive any default of the Servicer in the performance of its obligations under the 2015-1 Servicing Agreement and its consequences with respect to the 2015-1 Exchange Note and, upon any such waiver, such default shall cease to
exist and any Servicer Default arising therefrom shall be deemed to have been remedied for every purpose of the 2015-1 Exchange Note Servicing Agreement. No such waiver shall extend to any subsequent or other default or impair any right consequent
thereto. 

  
 11 

 SECTION 2.12. Representations and Warranties. The Servicer makes the following
representations and warranties to the Depositor, the Indenture Trustee and the Noteholders as of the 2015-1 Closing Date: 
 (a) The
representations and warranties contained in Section 2.6(a) of the Basic Servicing Agreement as to each 2015-1 Lease Agreement and the related 2015-1 Leased Vehicle were true and correct as of the 2015-1 Cutoff Date with respect to such 2015-1
Lease Agreements; 
 (b) The representations and warranties set forth in Section 5.1 of the Basic Servicing Agreement are true and
correct as of the date hereof; 
 (c) Each 2015-1 Lease Agreement and 2015-1 Leased Vehicle is an Eligible Collateral Asset as of the date
hereof; 
 (d) All information heretofore furnished by the Servicer or any of its Affiliates to the Indenture Trustee or the Owner Trustee
for purposes of or in connection with the 2015-1 Servicing Agreement or any of the other Program Documents or any transaction contemplated hereby or thereby is, and all information hereafter furnished by the Servicer or any of its Affiliates to the
Indenture Trustee, the Owner Trustee or any of the Noteholders will be, (i) true and accurate in every material respect on the date such information is stated or certified, and (ii) does not and will not contain any material misstatement
of fact or omit to state a material fact or any fact necessary to make the statements contained therein misleading, in the case of each of (i) and (ii) when taken together with all other information provided on or prior to the date hereof;
and 
 (e) No Servicer Default or event which with the giving of notice or lapse of time, or both, would become a Servicer Default has
occurred and is continuing as of the 2015-1 Closing Date. 
 (f) With respect to any 2015-1 Lease Agreement that constitutes
“electronic chattel paper” under the UCC, the Servicer, as initial custodian of the Lease Documents relating to the 2015-1 Designated Pool, maintains control of a single electronically authenticated authoritative copy of the related 2015-1
Lease Agreement. 

  
 12 

 SECTION 2.13. Custody of Lease Documents. 

(a) Pursuant to Section 2.3 of the Basic Servicing Agreement, the Servicer, either directly or through an agent, will act as initial
custodian of the Lease Documents relating to the 2015-1 Designated Pool, as agent and bailee for the benefit of the Issuer and the Indenture Trustee. All Lease Documents relating to the 2015-1 Designated Pool shall be identified and maintained in
such a manner so as to permit retrieval and access. If a Successor Servicer has been appointed hereunder, the Servicer shall promptly deliver all such Lease Documents to the Successor Servicer. If the Servicer is terminated under the 2015-1
Servicing Agreement upon the occurrence of a Servicer Default, the costs associated with transferring all such Lease Documents shall be paid by the Servicer. 

(b) With respect to any 2015-1 Lease Agreement that constitutes “electronic chattel paper” under the UCC, the Servicer, as initial
custodian of the Lease Documents relating to the 2015-1 Designated Pool, shall at all times maintain control of a single electronically authenticated authoritative copy of the related 2015-1 Lease Agreement. 

(c) In accordance with Section 2.10(h)(ii) of the Indenture and with respect to any Indenture Collateral that constitutes an instrument
or tangible chattel paper, the Servicer, as initial custodian of the Lease Documents relating to the 2015-1 Designated Pool, acknowledges that it is holding such instruments or tangible chattel paper solely on behalf and for the benefit of the
Indenture Trustee. 
 SECTION 2.14. Reserve Account. 

(a) On the 2015-1 Closing Date, GMF Leasing LLC shall deposit the Specified Reserve Balance into the Reserve Account. Amounts held from time
to time in the Reserve Account shall be held by the Indenture Trustee for the benefit of the Noteholders. 
 (b) On each Payment Date
(i) if the amount on deposit in the Reserve Account (without taking into account any amount on deposit in the Reserve Account representing net investment earnings) is less than the Specified Reserve Balance, then the Indenture Trustee shall,
after payment of any amounts required to be distributed pursuant to clauses (i) through (xiv) of Section 8.3(a) of the Indenture, deposit in the Reserve Account the Reserve Account Required Amount pursuant to Section 8.3(a)(xv)
of the Indenture, and (ii) if the amount on deposit in the Reserve Account, after giving effect to all other deposits thereto and withdrawals therefrom to be made on such Payment Date is greater than the Specified Reserve Balance, in which case
the Indenture Trustee shall distribute the amount of such excess as part of Available Funds on such Payment Date. 
 (c) On each Payment
Date, the Servicer shall instruct the Indenture Trustee to withdraw the Reserve Account Withdrawal Amount from the Reserve Account and deposit such amounts in the Indenture Collections Account to be included as Total Available Funds for that Payment
Date. 
 SECTION 2.15. Liability of Successor Servicer. No Successor Servicer will have any responsibility and will not be in default
hereunder or incur any liability for any failure, error, malfunction or any delay in carrying out any of their duties under this Supplement if such failure 

  
 13 

 
or delay results from such Successor Servicer acting in accordance with information prepared or supplied by any Person other than the Successor Servicer or the failure of any such other Person to
prepare or provide such information. No Successor Servicer will have any responsibility for and will not be in default and will incur no liability for, (a) any act or failure to act of any third party, including the Servicer, (b) any
inaccuracy or omission in a notice or communication received by such Successor Servicer from any third party, (c) the invalidity or unenforceability of any 2015-1 Lease Agreement under applicable law, (d) the breach or inaccuracy of any
representation or warranty made with respect to any 2015-1 Lease Agreement or 2015-1 Leased Vehicle, or (e) the acts or omissions of any successor to it as Successor Servicer. 

SECTION 2.16. Merger or Consolidation of, or Assumption of Obligations of the Servicer. Notwithstanding the provisions of
Section 5.3 of the Basic Servicing Agreement, GM Financial shall not merge or consolidate with any other Person, convey, transfer or lease substantially all its assets as an entirety to another Person, or permit any other Person to become the
successor to GM Financial’s business unless, after the merger, consolidation, conveyance, transfer, lease or succession, the successor or surviving entity shall be capable of fulfilling the duties of GM Financial contained in this Agreement and
shall be an eligible servicer. Any corporation (a) into which GM Financial may be merged or consolidated, (b) resulting from any merger or consolidation to which GM Financial shall be a party, (c) which acquires by conveyance,
transfer, or lease substantially all of the assets of GM Financial, or (d) succeeding to the business of GM Financial, in any of the foregoing cases shall execute an agreement of assumption to perform every obligation of GM Financial under this
Agreement and, whether or not such assumption agreement is executed, shall be the successor to GM Financial under this Agreement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement,
anything in this Agreement to the contrary notwithstanding; provided, however, that nothing contained herein shall be deemed to release GM Financial from any obligation. GM Financial shall provide notice of any merger, consolidation or
succession pursuant to this Section to the Owner Trustee, the Indenture Trustee and the Noteholders. Notwithstanding the foregoing, GM Financial shall not merge or consolidate with any other Person or permit any other Person to become a successor to
GM Financial’s business, unless (x) immediately after giving effect to such transaction, no representation or warranty made pursuant to Section 2.12 shall have been breached (for purposes hereof, such representations and warranties
shall speak as of the date of the consummation of such transaction), (y) GM Financial shall have delivered to the Owner Trustee, the Indenture Trustee and the Noteholders an Officer’s Certificate and an Opinion of Counsel each stating that
such consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been complied with, and (z) GM
Financial shall have delivered to the Owner Trustee, the Collateral Agent and the Indenture Trustee an Opinion of Counsel stating, in the opinion of such counsel, either that (i) all financing statements and continuation statements and
amendments thereto have been executed and filed that are necessary to preserve and protect the interest of the Trust in the 2015-1 Exchange Note and the Other Conveyed Property (and reciting the details of the filings), or (ii) no such action
shall be necessary to preserve and protect such interest. 
 SECTION 2.17. Resignation of the Servicer. Notwithstanding
Section 5.4 of the Basic Servicing Agreement, the Servicer shall not resign as Servicer under the 2015-1 Servicing Agreement except if it is prohibited by law from performing its obligations in respect of the 

  
 14 

 
2015-1 Exchange Note Assets under the Basic Servicing Agreement or hereunder and delivers to the Trustee, the Indenture Trustee and the Noteholders an Opinion of Counsel to such effect
concurrently with the delivery of any notice of resignation pursuant to Section 5.4 of the Basic Servicing Agreement. 
 SECTION 2.18.
Separate Existence. The Servicer shall take all reasonable steps to maintain the Titling Trust’s, the Settlor’s, the Depositor’s and the Issuer’s identities as separate legal entities, and shall make it manifest to third
parties that each of the Titling Trust, the Settlor, the Depositor and the Issuer is an entity with assets and liabilities distinct from those of the Servicer and not a division of the Servicer. All transactions and dealings between the Servicer, on
the one hand, and the Settlor, the Titling Trust, the Depositor and the Issuer, on the other hand, will be conducted on an arm’s-length basis. The Servicer shall take all other actions necessary on its part to ensure that the Depositor complies
with Section 2.5(d) of the Exchange Note Certificate Transfer Agreement and, to the extent within its control, take all action necessary to ensure that the Issuer complies with Section 3.16 of the Indenture. The Servicer shall take all
action necessary to ensure that the Titling Trust shall not take any of the following actions: 
 (a) engage in any business other than that
contemplated by the Titling Trust Agreement or enter into any transaction or indenture, mortgage, instrument, agreement, contract, lease or other undertaking which is not directly or indirectly related to the transactions contemplated by the Titling
Trust Documents; and 
 (b) issue, incur, assume, guarantee or otherwise become liable, directly or indirectly, for any obligations,
liabilities or responsibilities other than as set forth in the Titling Trust Documents. 

  
 15 

 SECTION 2.19. Like Kind Exchange Program; Pull Ahead Program. 

(a) Notwithstanding the provisions of the Basic Servicing Agreement, a 2015-1 Leased Vehicle may be reallocated from the 2015-1 Designated
Pool to the Lending Facility Pool in connection with a Like Kind Exchange if the full Base Residual Value of the related 2015-1 Leased Vehicle is deposited to the 2015-1 Exchange Note Collections Account by no later than the second (2nd) Business Day following the date of such reallocation; provided, that if the Net Liquidation Proceeds with respect to such 2015-1 Leased Vehicle are determined prior to the deposit of
such Base Residual Value to the 2015-1 Exchange Note Collections Account, then such Net Liquidation Proceeds may instead be deposited to the 2015-1 Exchange Note Collections Account in full satisfaction of this Section 2.19(a). If the Servicer
has deposited the full Base Residual Value of a 2015-1 Leased Vehicle to the 2015-1 Exchange Note Collections Account in connection with a Like Kind Exchange and (i) the related Net Liquidation Proceeds are determined thereafter to be less than
such Base Residual Value, then the Servicer shall be permitted to withdraw the excess of the related Base Residual Value so deposited over the related Net Liquidation Proceeds from the 2015-1 Exchange Note Collections Account for its own account,
and (ii) the related Net Liquidation Proceeds are determined thereafter to be greater than such Base Residual Value, then the Servicer shall be obligated to deposit the excess of the related Net Liquidation Proceeds over the Base Residual Value
to the 2015-1 Exchange Note Collections Account from its own funds by no later than the second (2nd) Business Day following the date on which such Net Liquidation Proceeds are determined.

 (b) Notwithstanding the provisions of the Basic Servicing Agreement, a 2015-1 Lease Agreement may be a Pull Ahead Lease Agreement
pursuant to a Pull Ahead Program if all amounts due and payable under the related 2015-1 Lease Agreement (other than (i) Excess Mileage/Wear and Tear Fees, which shall be charged to such Lessee to the extent applicable in accordance with the
terms of such 2015-1 Lease Agreement and the Servicer’s Customary Servicing Practices, and (ii) Monthly Payments that are waived in connection with such Lessee’s participation in the Pull Ahead Program and in connection with which a
Pull Ahead Payment is received by the Titling Trust or by the Servicer on its behalf and allocated to the 2015-1 Exchange Note Collections Account) are deposited to the 2015-1 Exchange Note Collections Account by no later than the second (2nd) Business Day following the date that such 2015-1 Lease Agreement would terminate pursuant to the Pull Ahead Program. The Servicer will not be entitled to reimbursement from any 2015-1
Designated Pool Collections for any amounts that it deposits to the 2015-1 Collections Account from its own funds in connection with any Pull Ahead Lease Agreement. 

ARTICLE III 
 MISCELLANEOUS 

SECTION 3.1. Termination of 2015-1 Servicing Supplement. This 2015-1 Servicing Supplement (and, accordingly, the Basic Servicing
Agreement insofar as it relates to the 2015-1 Exchange Note) will be terminated in the event that the Basic Servicing Agreement is terminated in accordance therewith and may also be terminated at the option of the Servicer or the Titling Trust at
any time following the payment in full of the 2015-1 Exchange Note. 

  
 16 

 SECTION 3.2. Amendment. 

(a) This 2015-1 Servicing Supplement (and, accordingly, the Basic Servicing Agreement, insofar as it relates to the 2015-1 Exchange Note) may
be amended by the parties hereto with the consent of the Majority Noteholders; provided, that to the extent that any such amendment materially affects any Other Exchange Note, such amendment shall require the consent of the Certificateholders
thereof affected thereby. 
 (b) The parties hereto acknowledge and agree that the right of the Indenture Trustee to consent to any
amendment of this 2015-1 Servicing Supplement is subject to the terms and provisions of Section 3.7(g) of the Indenture and that any consent provided by the Indenture Trustee in violation of such terms and provisions shall be of no force or
effect hereunder. 
 SECTION 3.3. GOVERNING LAW. THIS SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE
INTERNAL LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

SECTION 3.4. Relationship of 2015-1 Servicing Supplement to Other Trust Documents. Unless the context otherwise requires, this 2015-1
Servicing Supplement and the other Trust Documents shall be interpreted so as to give full effect to all provisions hereof and thereof. In the event of any actual conflict between the provisions of this 2015-1 Servicing Supplement and the Basic
Servicing Agreement, with respect to the servicing of any 2015-1 Exchange Note Assets, the provisions of this 2015-1 Servicing Supplement shall prevail. This 2015-1 Servicing Supplement shall supplement the Basic Servicing Agreement as it relates to
the 2015-1 Exchange Note and the 2015-1 Designated Pool and not to any other Exchange Note or Designated Pool or the Lending Facility Pool. 

SECTION 3.5. [Reserved]. 

SECTION 3.6. Notices. For purposes of the 2015-1 Servicing Agreement, all demands, notices, directions, requests 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 facsimile transmission, and addressed in each case as follows:
(a) if to the Servicer, GM Financial, 801 Cherry Street, Suite 3500, Fort Worth, Texas, 76102, Attention: Chief Financial Officer, and (b) if to the Indenture Trustee, Wells Fargo Bank, National Association, Sixth and Marquette Avenue, MAC
N9311-161, Minneapolis, Minnesota 55479. Notices to the other parties to this 2015-1 Servicing Supplement shall be delivered as provided in Section 6.5 of the Basic Servicing Agreement. 

SECTION 3.7. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this 2015-1 Servicing
Supplement or the 2015-1 Servicing Agreement 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 and terms of this
2015-1 Servicing Supplement or the 2015-1 Servicing Agreement, as applicable, and shall in no way affect the validity or enforceability of the other covenants, agreements, provisions and terms of this 2015-1 Servicing Supplement or the 2015-1
Servicing Agreement. 

  
 17 

 SECTION 3.8. Binding Effect. The provisions of this 2015-1 Servicing Supplement and the
2015-1 Servicing Agreement shall be binding upon and inure to the benefit of the parties hereto and their permitted successors and assigns. 

SECTION 3.9. Table of Contents and Headings. The Table of Contents and Article and Section headings herein are for convenience of
reference only and shall not define or limit any of the terms or provisions hereof. 
 SECTION 3.10. Counterparts. This 2015-1
Servicing Supplement 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 3.11. Further Assurances. Each party shall take 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 2015-1 Servicing Supplement and the 2015-1 Servicing Agreement and to better assure and confirm unto the requesting party its rights, powers and remedies
hereunder. 
 SECTION 3.12. Third-Party Beneficiaries. The Issuer, the Depositor and each Noteholder shall be third-party
beneficiaries of the 2015-1 Servicing Agreement. Except as otherwise provided in the 2015-1 Servicing Agreement, no other Person shall have any rights hereunder. 

SECTION 3.13. No Petition. Each of the parties hereto, in addition to the provisions of Section 6.13 of the Basic Servicing
Agreement, covenants and agrees that prior to the date that is one (1) year and one (1) day after the date on which all Notes have been paid in full, it will not institute against, or join any other person in instituting against the
Titling Trust or the Settlor, any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceeding or other Proceeding under any Insolvency Law. 

SECTION 3.14. Limitation of Liability. It is expressly understood and agreed by the parties hereto that (a) this 2015-1 Servicing
Supplement is executed and delivered by Wilmington Trust Company, not individually or personally but solely as owner trustee of the Titling Trust and the Settlor, in the exercise of the powers and authority conferred and vested in it under the
Titling Trust Agreement and Settlor Trust Agreement, as applicable, (b) each of the representations, undertakings and agreements herein made on the part of the Titling Trust and the Settlor is made and intended not as personal representations,
undertakings and agreements by Wilmington Trust Company but is made and intended for the purpose for binding only the Titling Trust and the Settlor, (c) nothing herein contained shall be construed as creating any liability on Wilmington Trust
Company, individually or personally, to perform any covenant either express or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and any Person claiming by, through or under the parties hereto,
(d) Wilmington Trust Company has made no investigation as to the accuracy or completeness of any representations and warranties made by the Issuer in this Agreement, and (e) under no 

  
 18 

 
circumstances shall Wilmington Trust Company be personally liable for the payment of any indebtedness or expenses of the Titling Trust and the Settlor or be liable for the breach or failure of
any obligation, representation, warranty or covenant made or undertaken by the Titling Trust and the Settlor under this 2015-1 Servicing Supplement or the other related documents. 

SECTION 3.15. Execution of Securities and Exchange Commission Filings. The Servicer will file or will cause to be filed, on behalf of
the Issuer and the Depositor, any documents, forms or other items required to be filed by the Issuer or the Depositor pursuant to the rules and regulations set by the Commission and relating to the Notes or the Program Documents. 

[Remainder of Page Intentionally Left Blank] 

  
 19 

 IN WITNESS WHEREOF, the parties hereto have caused this 2015-1 Servicing Supplement to be duly
executed by their respective officers duly authorized as of the day and year first above written. 
  

			
	ACAR LEASING LTD.,
		
	By:		Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee
		
	By:		  

	Name:		
	Title:		
	
	AMERICREDIT FINANCIAL SERVICES, INC. d/b/a GM Financial, as Servicer
		
	By:		  

	Name:		
	Title:		
	
	APGO TRUST, as Settlor
		
	By:		Wilmington Trust Company, not in its individual capacity but solely as Owner Trustee
		
	By:		  

	Name:		
	Title:		
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Indenture Trustee and as Collateral Agent
		
	By:		  

	Name:		
	Title:		

 [Signature Page to the 2015-1 Servicing Supplement] 

 EXHIBIT A 

FORM OF SERVICER REPORT 

  
 A-1 

 GMF Automobile Leasing Trust 2015-1 

    % Exchange Note 

Class A-1     % Asset Backed Notes 

Class A-2     % Asset Backed Notes 

Class A-3     % Asset Backed Notes 

Class A-4     % Asset Backed Notes 

Class B     % Asset Backed Notes 

Class C     % Asset Backed Notes 

Class D     % Asset Backed Notes 

Servicer’s Certificate 
  

													
	Beginning of Period:	 	 	  	2015-1	 	 	  	 	  	 	  	Original Agg.
	End of Period:	 	 	  	 Designated Pool
	 	 Units
	  	 Start Date
	  	 Closing Date
	  	 Securitization Value

	Number of days in Interest Period (Actual/360):	 		  		 		  		  		  	
	Number of days in Collection Period: 	 		  		 	  

	Report Due Date: 	 		  	Total	 	  

	Distribution Date: 	 		  		 		  		  		  	
	Transaction Month: 	 		  		 		  		  		  	

  

															
	RECONCILIATION OF 2015-1 DESIGNATED POOL AGGREGATE SECURITIZATION VALUE
								
	 	 	 	 	 	  	Number of Leases	 	 	 	 	 	 	 	 
		 	{1}	 	Beginning of period Aggregate Securitization Value	  	  
	 		 		 	{1}	 	  

							
		 	{2}	 	Reduction in Agg. Securitization Value due to payments	  		 	{2}	 	  
	 	
		 	{3}	 	Reduction in Agg. Securitization Value due to Defaulted Leases	  	  
	 	{3}	 	  
	 	
		 	{4}	 	Reduction in Agg. Securitization Value due to early terminations, dealer buyouts, cancellations, repurchases	  	  
	 	{4}	 	  
	 	
		 	{5}	 	Other adjustments	  	  
	 	{5}	 	  
	 	
		 	{6}	 	Total change in Agg. Securitization Value	  		 		 		 	{6}	 	  

								
		 	{7}	 	End of period Aggregate Securitization Value	  	  
	 		 		 	{7}	 	  

								
		 	{8}	 	Pool Factor	  		 		 		 	{8}	 	  

		
	RECONCILIATION OF 2015-1 EXCHANGE NOTE	 	
		 	{9}	 	Original Exchange Note Balance 	  		 		 		 	{9}	 	  

								
		 	{10}	 	Beginning of period Exchange Note Balance	  		 		 		 	{10}	 	  

								
		 	{11}	 	Exchange Note Principal Payment Amount	  		 		 		 	{11}	 	  

								
		 	{12}	 	End of period Exchange Note Balance	  		 		 		 	{12}	 	  

								
		 	{13}	 	Note Pool Factor	  		 		 		 	{13}	 	  

  

																	
	RECONCILIATION OF THE ASSET BACKED NOTES	  	 Class A-1
	  	 Class A-2
	  	 Class A-3
	  	 Class A-4

		 	{14}	 	Original Note Balance 	 		 	{14}	  		  		  		  	
									
		 	{15}	 	Beginning of period Note Balance	 		 	{15}	  		  		  		  	
									
		 	{16}	 	Noteholders’ Principal Distributable Amount	 		 	{16}	  		  		  		  	
		 	{17}	 	Noteholders’ Accelerated Principal Amount	 		 	{17}	  		  		  		  	
		 	{18}	 	Aggregate Principal Parity Amount	 		 	{18}	  		  		  		  	
		 	{19}	 	Matured Principal Shortfall	 		 	{19}	  		  		  		  	
						
		 	{20}	 	End of period Note Balance	 		 	{20}	  	  

						
		 	{21}	 	Note Pool Factor	 		 	{21}	  	  

									
	 	 	 	 	 	 	 	 	 	  	 Class B
	  	 Class C
	  	 Class D
	  	 TOTAL

		 	{22}	 	Original Note Balance	 		 	{22}	  	  

		 	{23}	 	Beginning of period Note Balance	 		 	{23}	  		  		  		  	
									
		 	{24}	 	Noteholders’ Principal Distributable Amount	 		 	{24}	  		  		  		  	
		 	{25}	 	Noteholders’ Accelerated Principal Amount	 		 	{25}	  		  		  		  	
		 	{26}	 	Aggregate Principal Parity Amount	 		 	{26}	  		  		  		  	
		 	{27}	 	Matured Principal Shortfall	 		 	{27}	  		  		  		  	
						
		 	{28}	 	End of period Note Balance	 		 	{28}	  	  

						
		 	{29}	 	Note Pool Factor	 		 	{29}	  	  

  
 1 

																	
	
	EXCHANGE NOTE MONTHLY PRINCIPAL PAYMENT AND INTEREST CALCULATIONS
			
		 		 	Principal payment calculation:
		 	{30}	 	Beginning of period Designated Pool Balance	 		 		 		 		 	{30}	 	  

								
		 	{31}	 	Ending Designated Pool Balance	 		 		 	{31}	 	  
	 	
		 	{32}	 	Unpaid prior Exchange Note Principal Payment Amount	 		 		 	{32}	 	  
	 	
		 	{33}	 	Sum of {31} + {32}	 		 		 		 		 	{33}	 	  

									
		 	{34}	 	Exchange Note Principal Payment Amount {30} - {33}	 		 		 		 		 	{34}	 	  

									
		 		 	Interest calculation:	 		 		 		 		 		 	
	 	 	 	 	                        Beg Note
Balance        Interest
Carryover        Interest Rate        Days        Days Basis     
   Interest
		 	{35}	 		 		 		 		 		 		 	
	
	RECONCILIATION OF EXCHANGE NOTE COLLECTION ACCOUNT
									
		 		 	Additions:	 		 		 		 		 		 	
		 	{36}	 	2015-1 Designated Pool Collections (net of Liquidation Proceeds and fees)	 		 		 	{36}	 	  
	 	
		 	{37}	 	Net Liquidation Proceeds collected during period	 		 		 	{37}	 	  
	 	
		 	{38}	 	Investment Earnings	 		 		 	{38}	 	  
	 	
		 	{39}	 	Investment Earning - transferred to Indenture Note Collection Account	 		 		 	{39}	 	  
	 	
		 	{40}	 	Deposit from Servicer (LKE, Pull Ahead Program)	 		 		 	{40}	 	  
	 	
									
		 	{41}	 	Total Additions:	 		 		 		 		 	{41}	 	  

									
		 		 	Distributions:	 		 		 		 		 		 	
		 	{42}	 	To the Servicer, Designated Pool Servicing Fee	 		 		 	{42}	 	  
	 	
		 	{43}	 	To the 2015-1 Exchange Noteholder, the Exchange Note Interest Payment Amount	 	{43}	 	  
	 	
		 	{44}	 	To the 2015-1 Exchange Noteholder, the Exchange Note Principal Payment Amount	 	{44}	 	  
	 	
		 	{45}	 	To the 2015-1 Exchange Noteholder, any funds available to pay obligations pursuant to Indenture Section 8.3 (a)(i) through (xvii)	 		 		 	{45}	 	  
	 	
		 	{46}	 	To the Lending Facility Pool, all remaining funds to be applied as Collections on Residual Pool	 		 		 	{46}	 	  
	 	
									
		 	{47}	 	Total Distributions:	 		 		 		 		 	{47}	 	  

	
	NOTEHOLDERS’ MONTHLY PRINCIPAL PAYMENT AND INTEREST CALCULATIONS
									
		 		 	Noteholders’ Principal Distributable calculation:	 		 		 		 		 		 	
		 	{48}	 	Beginning Agg. Securitization Value	 	{48}	 	  
	 		 		 	
		 	{49}	 	Ending Agg. Securitization Value	 	{49}	 	  
	 		 		 	
		 	{50}	 	Total change in Agg. Securitization Value {48} - {49}	 		 		 	{50}	 	  
	 	
								
		 	{51}	 	Indenture Section 5.4 collections following acceleration of the Notes	 		 		 	{51}	 	  
	 	
									
		 	{52}	 	Principal Distributable Amount {50} + {51}	 		 		 		 		 	{52}	 	  

									
		 	{53}	 	Noteholders’ Principal Carryover Amount	 		 		 		 		 	{53}	 	  

									
		 	{54}	 	Noteholders’ Principal Distributable Amount {52} + {53}	 		 		 		 		 	{54}	 	  

									
		 		 	Noteholders’ Interest Distributable calculation:	 		 		 		 		 		 	
		 		 	       Class        Beg Note Balance        Interest 
Carryover        Interest Rate        Days        Days Basis      
  Interest
		 	{55}	 	    Class A-1	 		 		 		 		 		 	
		 	{56}	 	    Class A-2	 		 		 		 		 		 	
		 	{57}	 	    Class A-3	 		 		 		 		 		 	
		 	{58}	 	    Class A-4	 		 		 		 		 		 	
		 	{59}	 	      Class B	 		 		 		 		 		 	
		 	{60}	 	      Class C	 		 		 		 		 		 	
		 	{61}	 	      Class D	 		 		 		 		 		 	
	
	RECONCILIATION OF INDENTURE COLLECTION ACCOUNT
									
		 		 	Available Funds:	 		 		 		 		 		 	
		 	{62}	 	2015-1 Exchange Note Collections	 		 		 	{62}	 	  
	 	
		 	{63}	 	Investment Earnings	 		 		 	{63}	 	  
	 	
		 	{64}	 	Investment Earnings - transferred from Exchange Note Collection Account	 		 		 	{64}	 	  
	 	
		 	{65}	 	Investment Earnings - and amounts released from Reserve Account	 		 		 	{65}	 	  
	 	
		 	{66}	 	Optional Purchase Price	 		 		 	{66}	 	  
	 	
		 	{67}	 	Indenture Section 5.4 disposition of Collateral	 		 		 	{67}	 	  
	 	
		 	{68}	 	Reserve Account Withdrawal Amount	 		 		 	{68}	 	  
	 	
									
		 	{69}	 	Total Available Funds:	 		 		 		 		 	{69}	 	  

									
		 		 	Distributions:	 		 		 		 		 		 	
		 	{70}	 	To the Successor Servicer, unpaid transition expenses, pro rata	 		 		 	{70}	 	  
	 	
		 	{71}	 	To the Indenture Trustee, any accrued and unpaid fees & expenses, pro rata	 		 		 	{71}	 	  
	 	
		 	{72}	 	To the Issuer Owner Trustee, any accrued and unpaid fees & expenses, pro rata	 		 		 	{72}	 	  
	 	
		 	{73}	 	Class A-1 Noteholders’ Interest Distributable Amount pari passu	 		 		 	{73}	 	  
	 	
		 	{74}	 	Class A-2 Noteholders’ Interest Distributable Amount pari passu	 		 		 	{74}	 	  
	 	
		 	{75}	 	Class A-3 Noteholders’ Interest Distributable Amount pari passu	 		 		 	{75}	 	  
	 	
		 	{76}	 	Class A-4 Noteholders’ Interest Distributable Amount pari passu	 		 		 	{76}	 	  
	 	
		 	{77}	 	Class A Noteholders’ Principal Parity Amount or Matured Principal Shortfall	 		 		 	{77}	 	  
	 	
		 	{78}	 	Class B Noteholders’ Interest Distributable Amount	 		 		 	{78}	 	  
	 	
		 	{79}	 	Class B Noteholders’ Principal Parity Amount or Matured Principal Shortfall	 		 		 	{79}	 	  
	 	
		 	{80}	 	Class C Noteholders’ Interest Distributable Amount	 		 		 	{80}	 	  
	 	
		 	{81}	 	Class C Noteholders’ Principal Parity Amount or Matured Principal Shortfall	 		 		 	{81}	 	  
	 	
		 	{82}	 	Class D Noteholders’ Interest Distributable Amount	 		 		 	{82}	 	  
	 	
		 	{83}	 	Class D Noteholders’ Principal Parity Amount or Matured Principal Shortfall	 		 		 	{83}	 	  
	 	
		 	{84}	 	Noteholders’ Principal Distributable Amount	 		 		 	{84}	 	  
	 	
		 	{85}	 	To the Reserve Account, the Reserve Amount Required Amount	 		 		 	{85}	 	  
	 	
		 	{86}	 	To the Noteholders, the Accelerated Principal Amount (as calculated below)	 		 		 	{86}	 	  
	 	
		 	{87}	 	To the Successor Servicer, any amounts in excess of the caps set forth, pro rata	 		 		 	{87}	 	  
	 	
		 	{88}	 	To the Indenture Trustee, any amounts in excess of the caps set forth, pro rata	 		 		 	{88}	 	  
	 	
		 	{89}	 	To the Issuer Owner Trustee, any amounts in excess of the caps set forth, pro rata	 		 		 	{89}	 	  
	 	
		 	{90}	 	To the Issuer Trust Certificateholders, the aggregate amount remaining	 		 		 	{90}	 	  
	 	
									
		 	{91}	 	Total Distributions:	 		 		 		 		 	{91}	 	  

  
 2 

																							
	 PRINCIPAL PARITY AMOUNT CALCULATION
  
	 	
	 	 	 	 	 Class
	 	 (X)

Cumulative
Note Balance
	 	 (Y)

Aggregate
Securitization Value
	 	 (I)

Excess of
(X) - (Y)
	 	 (II)

Total Available Funds
in Indenture Collection Account
	 	 Lesser of
(I) or (II)
	 	 	 	 
		 	{92}	 	Class A	 		 		 		 		 		 		 		 		 	
		 	{93}	 	Class B	 		 		 		 		 		 		 		 		 	
		 	{94}	 	Class C	 		 		 		 		 		 		 		 		 	
		 	{95}	 	Class D	 		 		 		 		 		 		 		 		 	
	
	ACCELERATED PRINCIPAL AMOUNT CALCULATION
										
		 	{96}	 	Excess Total Available Funds	 		 		 		 		 	{96}	 	  
	 	
										
		 	{97}	 	Beginning Note Balance	 		 		 	{97}	 	  
	 		 		 	
		 	{98}	 	Principal payments through Indenture Section 8.3 (i) through (xv)	 	{98}	 	  
	 		 		 	
		 	{99}	 	Pro-Forma Note Balance	 		 		 		 	{99}	 	  
	 		 	
									
		 	{100}	 	Ending Aggregate Securitization Value	 		 	{100}	 	  
	 		 		 	
		 	{101}	 	12% of Aggregate Securitization Value as of Cutoff Date ($92,976,950)	 	{101}	 	  
	 		 		 	
		 	{102}	 	Required Pro Forma Note Balance {100} - {101}	 		 	{102}	 	  
	 		 	
						
		 	{103}	 	Excess of Pro Forma Balance minus Required Pro Forma Balance {99} - {102}	 	{103}	 	  
	 	
						
		 	{104}	 	Lesser of Excess Total Available Funds and Excess of Pro Forma Note Balance	 		 	{104}	 	  

	
	OVERCOLLATERALIZATION CALCULATIONS
										
		 		 	Exchange Note:	 		 		 		 		 		 		 	
		 	{105}	 	Ending Aggregate Securitization Value	 		 		 		 	{105}	 	  
	 	
		 	{106}	 	End of Period Note Balance	 		 		 		 		 	{106}	 	  
	 	
		 	{107}	 	Overcollateralization	 		 		 		 		 	{107}	 	  
	 	
		 	{108}	 	Overcollateralization %	 		 		 		 		 		 	{108}	 	  

										
		 		 	Asset Backed Notes:	 		 		 		 		 		 		 	
		 	{109}	 	Ending Aggregate Securitization Value	 		 		 		 	{109}	 	  
	 	
		 	{110}	 	End of Period Note Balance	 		 		 		 		 	{110}	 	  
	 	
		 	{111}	 	Overcollateralization	 		 		 		 		 	{111}	 	  
	 	
		 	{112}	 	Overcollateralization %	 		 		 		 		 		 	{112}	 	  

	
	RECONCILIATION OF 2015-1 CASH RESERVE ACCOUNT
		 	{113}	 	Specified Reserve Balance	 		 		 		 		 		 	{113}	 	  

									
		 	{114}	 	Beginning of Period Reserve Account balance	 		 		 		 		 	{114}	 	  

		 	{115}	 	Investment Earnings	 		 		 		 		 	{115}	 	  
	 	
		 	{116}	 	From the Indenture Collection Account, the Reserve Account Required Amount	 	{116}	 	  
	 	
		 	{117}	 	To the Indenture Collection Account, the Reserve Account Withdrawal Amount	 	{117}	 	  
	 	
		 	{118}	 	Total Reserve balance available:	 		 		 		 		 		 	{118}	 	  

										
		 	{119}	 	Specified Reserve Balance	 		 		 		 		 		 	{119}	 	  

						
		 	{120}	 	Release Excess Cash to Indenture Collection Available Funds	 		 	{120}	 	  

									
		 	{121}	 	End of period Reserve Account balance	 		 		 		 		 	{121}	 	  

	
	EVENTS OF DEFAULT AND ACCELERATION OF MATURITY OF NOTE
					
		 	{122}	 	With respect to the Program Documents, I,                     , do hereby certify that no Event of Default has
occurred.	 	{122}	 	  

		 	{123}	 	With respect to the Program Documents, I,                     , do hereby certify that an Acceleration of Maturity has
not occurred.	 	{123}	 	  

  

			
	By:	 	  

	Name:	 	  

	Title:	 	  

	Date:	 	  

  
 3Exhibit 10.4

IKANOS COMMUNICATIONS

2004 EMPLOYEE STOCK PURCHASE PLAN AS AMENDED MAY 2, 2011

The following constitutes the provisions of the 2004 Employee Stock Purchase Plan of Ikanos Communications.

1.Purpose.   The purpose of the Plan is to provide Employees with an opportunity to purchase Common Stock through accumulated payroll deductions. It is the intention of the Company to have the Plan qualify as an "employee stock purchase plan" under Section 423 of the Code. The provisions of the Plan, accordingly, will be construed so as to extend and limit Plan participation in a manner that is consistent with the requirements of that section of the Code.

		
	2.
	Definitions.

		
	(a)
	"Administrator" means the Board or any committee thereof designated by the Board in accordance with Section 14.

		
	(b)
	"Board" means the Board of Directors of the Company.

		
	(c)
	"Change of Control" means the occurrence of any of the following events:

(i)Any "person" (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the "beneficial owner" (as defined in Rule 13d-3 of the Exchange Act), directly or indirectly, of securities of the Company representing fifty percent (50%) or more of the total voting power represented by the Company's then outstanding voting securities; or

(ii)The consummation of the sale or disposition by the Company of all or substantially all of the Company's assets;

(iii)The consummation of a merger or consolidation of the Company, with any other corporation, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity or its parent) at least fifty percent (50%) of the total voting power represented by the voting securities of the Company, or such surviving entity or its parent outstanding immediately after such merger or consolidation; or

(iv)A change in the composition of the Board, as a result of which fewer than a majority of the Directors are Incumbent Directors. "Incumbent Directors" means Directors who either (A) are Directors as of the effective date of the Plan (pursuant to Section 23), or (B) are elected, or nominated for election, to the Board with the affirmative votes of at least a majority of those Directors whose election or nomination was not in connection with any transaction described in subsections (i), (ii) or (iii) or in connection with an actual or threatened proxy contest relating to the election of Directors of the Company.

(d)"Code" means the Internal Revenue Code of 1986, as amended. Any reference to a section of the Code herein will be a reference to any successor or amended section of the Code.

		
	(e)
	"Common Stock" means the common stock of the Company.

		
	(f)
	"Company" means Ikanos Communications, a Delaware corporation.

(g)"Compensation" means an Employee's base straight time gross earnings, commissions (to the extent such commissions are an integral, recurring part of compensation), overtime and shift premium, but exclusive of payments for incentive compensation, bonuses and other compensation.

(h)"Designated Subsidiary" means any Subsidiary that has been designated by the Administrator from time to time in its sole discretion as eligible to participate in the Plan.

		
	(i)
	"Director" means a member of the Board.

(j)"Employee" means any individual who is a common law employee of an Employer and is customarily employed for at least twenty (20) hours per week and more than five (5) months in any calendar year by the Employer. For purposes of the Plan, the employment relationship will be treated as continuing intact while the individual is on sick leave or other leave of absence approved by the Employer. Where the period of leave exceeds ninety (90) days and the individual's right to reemployment is not guaranteed either by statute or by contract, the employment relationship will be deemed to have terminated on the 91st day of such leave. The Administrator, in its discretion, from time to time may, prior to an Enrollment Date for all options to be granted on such Enrollment Date, determine (on a uniform and nondiscriminatory basis) that the definition of Employee will or will not include an individual if he or she: (1) has not completed at least two years of service since his or her last hire date (or such lesser period of time as may be determined by the Administrator in its discretion), (2) customarily works not more than 20 hours per week (or such lesser period of time as may be determined by the Administrator in its discretion), (3) customarily works not more than 5 months per calendar year (or such lesser period of time as may be determined by the Administrator in its discretion), (4) is an officer or other manager, or (5) is a highly compensated employee under Section 414(q) of the Code.

		
	(k)
	"Employer" means any one or all of the Company and its Designated Subsidiaries.

		
	(l)
	"Enrollment Date" means the first Trading Day of each Offering Period.

(m)"Exchange Act" means the Securities Exchange Act of 1934, as amended, including the rules and regulations promulgated thereunder.

(n)"Exercise Date" means the first Trading Day on or after May 1 and November 1 of each year. The first Exercise Date will occur on the first Trading Day on or after May 1, 2005.

(o)"Fair Market Value" means, as of any date, the value of Common Stock determined as follows:

(i)    If the Common Stock is listed on any established stock exchange or a national market system, including without limitation the Nasdaq National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its Fair Market Value will be the closing sales price for the Common Stock (or the closing bid, if no sales were reported) as quoted on such exchange or system on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(ii)    If the Common Stock is regularly quoted by a recognized securities dealer but selling prices are not reported, its Fair Market Value will be the mean of the closing bid and asked prices for the Common Stock on the date of determination, as reported in The Wall Street Journal or such other source as the Administrator deems reliable;

(iii)    In the absence of an established market for the Common Stock, its Fair Market Value will be determined in good faith by the Administrator; or

(iv)    For purposes of the Enrollment Date of the first Offering Period under the Plan, the Fair Market Value will be the initial price to the public as set forth in the final prospectus deemed to be included within the registration statement on Form S-1 filed with the Securities and Exchange Commission for the initial public offering of the Common Stock (the "Registration Statement").

(p)"Offering Periods" means the periods of approximately twenty-four (24) months during which an option granted pursuant to the Plan may be exercised, commencing on the first Trading Day on or after May 1 and November 1 of each year and terminating on the first Trading Day on or after the May 1 and November 1 Offering Period commencement date approximately twenty- four (24) months later; provided, however, that the first Offering Period under the Plan will commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) November 1, 2006 or (ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided, further, that the second Offering Period under the Plan will commence on the first Trading Day on or after May 1, 2005. The duration and timing of Offering Periods may be changed pursuant to Section 4 of this Plan.

(q)"Parent" means a "parent corporation," whether now or hereafter existing, as defined in Section 424(e) of the Code.

		
	(r)
	"Plan" means this 2004 Employee Stock Purchase Plan.

(s)"Purchase Period" means the approximately six (6) month period commencing on one Exercise Date and ending with the next Exercise Date, except that the first Purchase Period of any Offering Period will commence on the Enrollment Date and end with the next Exercise Date.

(t)"Purchase Price" means an amount equal to eighty-five percent (85%) of the Fair Market Value of a share of Common Stock on the Enrollment Date or on the Exercise Date, whichever is lower; provided however, that the Purchase Price may be adjusted by the Administrator pursuant to Section 20.

(u)"Subsidiary" means a "subsidiary corporation," whether now or hereafter existing, as defined in Section 424(f) of the Code.

(v)"Trading Day" means a day on which the U.S. national stock exchanges and the Nasdaq System are open for trading.

		
	3.
	Eligibility.

(a)    First Offering Period.    Any individual who is an Employee immediately prior to the first Offering Period under the Plan will be automatically enrolled in the first Offering Period.

(b)    Subsequent Offering Periods.    Any individual who is an Employee as of the Enrollment Date of any future Offering Period will be eligible to participate in such Offering Period, subject to the requirements of Section 5.

(c)    Limitations.    Any provisions of the Plan to the contrary notwithstanding, no Employee will be granted an option under the Plan (i) to the extent that, immediately after the grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Section 424(d) of the Code) would own capital stock of the Company or any Parent or Subsidiary of the Company and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of the capital stock of the Company or of any Parent or Subsidiary of the Company, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Section 423 of the Code) of the Company or any Parent or Subsidiary of the Company accrues at a rate which exceeds twenty-five thousand dollars ($25,000) worth of stock (determined at the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time.

4.Offering Periods.   The Plan will be implemented by consecutive, overlapping Offering Periods with a new Offering Period commencing on the first Trading Day on or after May 1 and November 1 of each year, or on such other date as the Administrator will determine, and continuing thereafter until terminated in accordance with Section 20; provided, however, that the first Offering Period under the Plan will commence with the first Trading Day on or after the date on which the Securities and Exchange Commission declares the Company's Registration Statement effective and ending on the first Trading Day on or after the earlier of (i) November 1, 2006 or (ii) twenty-seven (27) months from the beginning of the first Offering Period; and provided, further, that the second Offering Period under the Plan will commence on the first Trading Day on or after May 1, 2005. The Administrator will have the power to change the duration of Offering Periods (including the commencement dates thereof) with respect to future offerings without stockholder approval if such change is announced prior to the scheduled beginning of the first Offering Period to be affected thereafter.

		
	5.
	Participation.

(a)    First Offering Period.    An Employee who has become a participant in the first Offering Period under the Plan pursuant to Section 3(a) will be entitled to continue his or her      participation in such Offering Period only if he or she submits to the Company's payroll office (or its designee) a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose (i) no earlier than the effective date of the filing of the Company's Registration Statement on Form S-8 with respect to the shares of Common Stock issuable under the Plan (the "Effective Date") and (ii) no later than five (5) business days from the Effective Date or such other period of time as the Administrator may determine (the "Enrollment Window"). A participant's failure to submit the subscription agreement during the Enrollment Window pursuant to this Section 5(a) will result in the automatic termination of his or her participation in the first Offering Period under the Plan.

(b)    Subsequent Offering Periods.    An Employee who is eligible to participate in the Plan pursuant to Section 3(b) may become a participant by (i) submitting to the Company's payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Enrollment Date, a properly completed subscription agreement authorizing payroll deductions in the form provided by the Administrator for such purpose, or (ii) following an electronic or other enrollment procedure prescribed by the Administrator.

		
	6.
	Payroll Deductions.

(a)    At the time a participant enrolls in the Plan pursuant to Section 5, he or she will elect to have payroll deductions made on each payday during the Offering Period in an amount not exceeding 15% of the Compensation which he or she receives on each such payday.

(b)    Payroll deductions authorized by a participant will commence on the first payday following the Enrollment Date and will end on the last payday in the Offering Period to which such authorization is applicable, unless sooner terminated by the participant as provided in
Section 10; provided, however, that for the first Offering Period under the Plan, payroll deductions will commence on the first payday on or following the end of the Enrollment Window.

(c)    All payroll deductions made for a participant will be credited to his or her account under the Plan and will be withheld in whole percentages only. A participant may not make any additional payments into such account.

(d)    A participant may discontinue his or her participation in the Plan as provided in Section 10, or may change the rate of his or her payroll deductions during the Offering Period by
(i) properly completing and submitting to the Company's payroll office (or its designee), on or before a date prescribed by the Administrator prior to an applicable Exercise Date, a new subscription agreement authorizing the change in payroll deduction rate in the form provided by the Administrator for such purpose, or (ii) following an electronic or other procedure prescribed by the Administrator. If a participant has not followed such procedures to change the rate of payroll deductions, the rate of his or her payroll deductions will continue at the originally elected rate throughout the Offering Period and future Offering Periods (unless terminated as provided in Section 10). The Administrator may, in its sole discretion, limit the nature and/or number of payroll deduction rate changes that may be made by participants during any Offering Period or Purchase Period. Any change in payroll deduction rate made pursuant to this Section 6(d) will be effective as of the first full payroll period following five (5) business days after the date on which the change is made by the participant (unless the Administrator, in its sole discretion, elects to process a given change in payroll deduction rate more quickly).

(e)    Notwithstanding the foregoing, to the extent necessary to comply with Section 423(b)(8) of the Code and Section 3(c), a participant's payroll deductions may be decreased to zero percent (0%) at any time during a Purchase Period. Payroll deductions will recommence at the rate originally elected by the participant effective as of the beginning of the first Purchase Period  which is scheduled to end in the following calendar year, unless terminated by the participant as provided in Section 10.

(f)    At the time the option is exercised, in whole or in part, or at the time some or all of the Company's Common Stock issued under the Plan is disposed of, the participant must make adequate provision for the Company's federal, state, or other tax withholding obligations, if any, which arise upon the exercise of the option or the disposition of the Common Stock. At any time, the Company may, but will not be obligated to, withhold from the participant's compensation the amount necessary for the Company to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the sale or early disposition of Common Stock by the Employee.

7.Grant of Option.    On the Enrollment Date of each Offering Period, each Employee participating in such Offering Period will be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to a number of shares of Common Stock determined by dividing such participant's payroll deductions accumulated prior to such Exercise Date and retained in the participant's account as of the Exercise Date by the applicable Purchase Price; provided that in no event will a participant be permitted to purchase during each Purchase Period more than 5,000 (post-split) shares of Common Stock (subject to any adjustment pursuant to Section 19), and provided further that such purchase will be subject to the limitations set forth in Sections 3(c) and 13. The Employee may accept the grant of such option (i) with respect to the first Offering Period under the Plan, by submitting a properly

completed subscription agreement in accordance with the requirements of Section 5(a) on or before the last day of the Enrollment Window, and (ii) with respect to any future Offering Period under the Plan, by electing to participate in the Plan in accordance with the requirements of Section 5(b). The Administrator may, for future Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that a participant may purchase during each Purchase Period of such Offering Period. Exercise of the option will occur as provided in Section 8, unless the participant has withdrawn pursuant to Section 10. The option will expire on the last day of the Offering Period.

		
	8.
	Exercise of Option.

(a)    Unless a participant withdraws from the Plan as provided in Section 10, his or her option for the purchase of shares of Common Stock will be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option will be purchased for such participant at the applicable Purchase Price with the accumulated payroll deductions in his or her account. No fractional shares of Common Stock will be purchased; any payroll deductions accumulated in a participant's account which are not sufficient to purchase a full share will be retained in the participant's account for the subsequent Purchase Period or Offering Period, subject to earlier withdrawal by the participant as provided in Section 10. Any other monies left over in a participant's account after the Exercise Date will be returned to the participant. During a participant's lifetime, a participant's option to purchase shares hereunder is exercisable only by  him or her.

(b)    Notwithstanding any contrary Plan provision, if the Administrator determines that, on a given Exercise Date, the number of shares of Common Stock with respect to which options are to be exercised may exceed (i) the number of shares of Common Stock that were available for sale under the Plan on the Enrollment Date of the applicable Offering Period, or (ii) the number of shares of Common Stock available for sale under the Plan on such Exercise Date, the Administrator may in its sole discretion (x) provide that the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine in its sole discretion to be equitable among all participants exercising options to purchase  Common Stock on such Exercise Date, and continue all Offering Periods then in effect, or
(y) provide that the Company will make a pro rata allocation of the shares of Common Stock available for purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform a manner as will be practicable and as it will determine in its sole discretion to be equitable among all participants exercising options to purchase Common Stock on such Exercise Date, and terminate any or all Offering Periods then in effect pursuant to Section 20. The Company may make pro rata allocation of the shares of Common Stock available on the Enrollment Date of any applicable Offering Period pursuant to the preceding sentence, notwithstanding any authorization of additional shares of Common Stock for issuance under the Plan by the Company's shareholders subsequent to such Enrollment Date.

9.Delivery.    As soon as administratively practicable after each Exercise Date on which a purchase of shares of Common Stock occurs, the Company will arrange the delivery to each participant, as appropriate, the shares purchased upon exercise of his or her option in a form determined by the Administrator (in its sole discretion) and pursuant to rules established by the Administrator. No participant will have any voting, dividend, or other shareholder rights with respect to shares of Common Stock subject to any option granted under the Plan until such shares have been purchased and delivered to the participant as provided in this Section 9.

		
	10.
	Withdrawal.

(a)    Under procedures established by the Administrator, a participant may withdraw all but not less than all the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time by (i) submitting to the Company's payroll office (or

its designee) a written notice of withdrawal in the form prescribed by the Administrator for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Administrator. All of the participant's payroll deductions credited to his or her account will be paid to such participant as promptly as practicable after the effective date of his or her withdrawal and such participant's option for the Offering Period will be automatically terminated, and no further payroll deductions for the purchase of shares will be made for such Offering Period. If a  participant withdraws from an Offering Period, payroll deductions will not resume at the  beginning of the succeeding Offering Period unless the participant re-enrolls in the Plan in accordance with the provisions of Section 5.

(b)    A participant's withdrawal from an Offering Period will not have any effect upon his or her eligibility to participate in any similar plan which may hereafter be adopted by the Company or in succeeding Offering Periods which commence after the termination of the Offering Period from which the participant withdraws.

11.Termination of Employment.    Upon a participant's ceasing to be an Employee, for any reason, he or she will be deemed to have elected to withdraw from the Plan and the payroll deductions credited to such participant's account during the Offering Period but not yet used to purchase shares of Common Stock under the Plan will be returned to such participant or, in the case of his or her death, to the person or persons entitled thereto under Section 15, and such participant's option will be automatically terminated. The preceding sentence notwithstanding, a participant who receives payment in lieu of notice of termination of employment will be treated as continuing to be an Employee for the participant's customary           number of hours per week of employment during the period in which the participant is subject to such payment in lieu of notice.

		
	12.
	Interest.    No interest will accrue on the payroll deductions of a participant in the Plan.

		
	13.
	Stock.

(a)    Subject to adjustment upon changes in capitalization of the Company as provided in Section 19, the maximum number of shares of Common Stock which will be made available for sale under the Plan will be 1,000,000 (post-split) shares of Common Stock plus an annual increase to be added on the first day of the Company's fiscal year beginning in fiscal year 2005 and ending in 2014, equal to the lesser of (i) [2.5]% of the outstanding shares of Common Stock on such date; or (ii) 1,500,000 shares; or (iii) an amount determined by the Board.

(b)    Shares of Common Stock to be delivered to a participant under the Plan will be registered in the name of the participant or in the name of the participant and his or her spouse.

14.Administration.   The Board or a committee of members of the Board who will be appointed from time to time by, and will serve at the pleasure of, the Board, will administer the Plan. The Administrator will have full and exclusive discretionary authority to construe, interpret and apply the terms of the Plan, to determine eligibility, to adjudicate all disputed claims filed under the Plan and to establish such procedures that it deems necessary for administration of the Plan (including, without limitation, to adopt such procedures and sub-plans as are necessary or appropriate to permit the participation in the Plan by employees who are foreign nationals or employed outside the United States). The Administrator, in its sole discretion and on such terms and conditions as it may provide, may delegate to one or more individuals all or any part of its authority and powers under the Plan. Every finding, decision and determination made by the Administrator (or its designee) will, to the full extent permitted by law, be final and binding upon all parties.

		
	15.
	Designation of Beneficiary.

(a)    A participant may designate a beneficiary who is to receive any shares of Common Stock and cash, if any, from the participant's account under the Plan in the event of such         participant's death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such shares and cash. In addition, a participant may designate a beneficiary who is to receive any cash from the participant's account under the Plan in the event of such participant's death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse, spousal consent will be required for such designation to be effective.

(b)    Such designation of beneficiary may be changed by the participant at any time. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time of such participant's death, the Company will deliver such shares and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the Company, in its discretion, may deliver such shares and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company may designate.

(c)    All beneficiary designations under this Section 15 will be made in such form and manner as the Administrator may prescribe from time to time.

16.Transferability.    Neither payroll deductions credited to a participant's account nor any rights with regard to the exercise of an option or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 15) by the participant. Any such attempt at assignment, transfer, pledge or other disposition will be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 10.

17.Use of Funds.    All payroll deductions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company will not be obligated to segregate such payroll deductions. Until shares of Common Stock are issued under the Plan (as evidenced by the appropriate entry on the books of the Company or of a duly authorized transfer agent of the Company), a participant will only have the rights of an unsecured creditor with respect to such shares.

18.Reports.    Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually, which statements will set forth the amounts of payroll deductions, the Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any.

		
	19.
	Adjustments, Dissolution, Liquidation or Change of Control.

(a)    Adjustments.    In the event that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, reorganization, merger, consolidation, split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the Company, or other change in the corporate structure of the Company affecting the Common Stock such that an adjustment is determined by the Administrator (in its sole discretion) to be appropriate in order to prevent dilution or enlargement of the benefits or potential benefits intended to be made available under the Plan, then the Administrator will, in such manner as it may deem equitable, adjust the number and class of Common Stock which may be delivered under the Plan, the Purchase Price per share and the number of shares of Common Stock covered by each option under the Plan which has not yet been exercised, and the numerical limits of Sections 7 and 13.

(b)    Dissolution or Liquidation.    In the event of the proposed dissolution or liquidation of the Company, the Offering Period then in progress will be shortened by setting a new Exercise Date (the "New Exercise Date"), and will terminate immediately prior to the consummation of such proposed dissolution or liquidation, unless provided otherwise by the Board. The New Exercise Date will be before the date of the Company's proposed dissolution or liquidation. The Board will notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant's option has been changed to the New Exercise Date and that the participant's option will be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10.

(c)    Change of Control.    In the event of a Change of Control, each outstanding option will be assumed or an equivalent option substituted by the successor corporation or a Parent or Subsidiary of the successor corporation. In the event that the successor corporation refuses to assume or substitute for the option, any Purchase Periods then in progress will be shortened by setting a new Exercise Date (the "New Exercise Date") and any Offering Periods then in progress will end on the New Exercise Date. The New Exercise Date will be before the date of the Company's proposed Change of Control. The Board will notify each participant in writing, at least ten (10) business days prior to the New Exercise Date, that the Exercise Date for the participant's option has been changed to the New Exercise Date and that the participant's option will be exercised automatically on the New Exercise Date, unless prior to such date the participant has withdrawn from the Offering Period as provided in Section 10.

		
	20.
	Amendment or Termination.

(a)    The Administrator may at any time and for any reason terminate or amend the Plan. Except as provided in Section 19, no such termination can affect options previously granted under the Plan, provided that an Offering Period may be terminated by the Administrator on any Exercise Date if the Administrator determines that the termination or suspension of the Plan is in the best interests of the Company and its stockholders. Except as provided in Section 19 and this Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary to comply with Section 423 of the Code (or any successor rule or provision or any other applicable law, regulation or stock exchange rule), the Company will obtain stockholder approval in such a manner and to such a degree as required.

(b)    Without stockholder consent and without regard to whether any participant rights may be considered to have been "adversely affected," the Administrator will be entitled to change the Offering Periods, limit the frequency and/or number of changes in the amount withheld during an Offering Period, establish the exchange ratio applicable to amounts withheld in a currency other than U.S. dollars, permit payroll withholding in excess of the amount designated by a participant in order to adjust for delays or mistakes in the Company's processing of properly completed withholding elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each participant properly correspond with amounts withheld from the participant's Compensation, and establish such other limitations or procedures as the Administrator determines in its sole discretion advisable which are consistent with the Plan.

(c)    In the event the Administrator determines that the ongoing operation of the Plan may result in unfavorable financial accounting consequences, the Board may, in its discretion and, to the extent necessary or desirable, modify or amend the Plan to reduce or eliminate such accounting consequence including:

(i)    altering the Purchase Price for any Offering Period including an Offering Period underway at the time of the change in Purchase Price;

(ii)    shortening any Offering Period so the Offering Period ends on a new Exercise Date, including an Offering Period underway at the time of the Board action; and

		
	(iii)
	allocating shares.

Such modifications or amendments will not require stockholder approval or the consent of any Plan participants.

21.Notices.    All notices or other communications by a participant to the Company under or in connection with the Plan will be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the receipt thereof.

22.Conditions Upon Issuance of Shares.    Shares of Common Stock will not be issued with respect to an option under the Plan unless the exercise of such option and the issuance and delivery of such shares pursuant thereto will comply with all applicable provisions of law, domestic or foreign, including, without limitation, the Securities Act of 1933, as amended, including the rules and regulations promulgated thereunder, the Exchange Act and the requirements of any stock exchange upon which the shares may then be listed, and will be further subject to the approval of counsel for the Company with respect to such compliance.

As a condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares are being purchased only for investment and without any present intention to sell or distribute such shares if, in the opinion of counsel  for the Company, such a representation is required by any of the aforementioned applicable provisions of law.

23.Term of Plan.   The Plan will become effective upon the earlier to occur of its adoption by the Board or its approval by the stockholders of the Company. It will continue in effect for a term of twenty
(20) years, unless sooner terminated under Section 20.

24.Automatic Transfer to Low Price Offering Period.    To the extent permitted by any applicable laws, regulations, or stock exchange rules if the Fair Market Value of the Common Stock on any Exercise Date in an Offering Period is lower than the Fair Market Value of the Common Stock on the Enrollment Date of such Offering Period, then all participants in such Offering Period will be automatically withdrawn from such Offering Period immediately after the exercise of their option on such Exercise Date and automatically re-enrolled in the immediately following Offering Period.

SAMPLE SUBSCRIPTION AGREEMENT

IKANOS COMMUNICATIONS

2004 EMPLOYEE STOCK PURCHASE PLAN SUBSCRIPTION AGREEMENT

	
		
	Original Application
	Offering Date:

	Change in Payroll Deduction Rate

	Change of Beneficiary(ies)

1.
     hereby elects to participate in the Ikanos Communications 2004 Employee Stock Purchase Plan (the "Plan") and subscribes to purchase shares of the Company's Common Stock in accordance with this Subscription Agreement and the Plan.

2.
I hereby authorize payroll deductions from each paycheck in the amount of    % of my Compensation on each payday (from 0 to 15%) during the Offering Period in accordance with the Plan. (Please note that no fractional percentages are permitted.)

3.
I understand that said payroll deductions will be accumulated for the purchase of shares of Common Stock at the applicable Purchase Price determined in accordance with the Plan. I understand that if I do not withdraw from an Offering Period, any accumulated payroll deductions will be used to automatically exercise my option.

4.
I have received a copy of the complete Plan. I understand that my participation in the Plan is in all respects subject to the terms of the Plan. I understand that my ability to exercise the option under this Subscription Agreement is subject to shareholder approval of the Plan.

5.
Shares of Common Stock purchased for me under the Plan should be issued in the name(s) of Employee or Employee and Spouse only.

6.
I understand that if I dispose of any shares received by me pursuant to the Plan within 2 years after the Offering Date (the first day of the Offering Period during which I purchased such shares) or one year after the Exercise Date, I will be treated for federal income tax purposes as having received ordinary income at the time of such disposition in an amount equal to the excess of the fair market value of the shares at the time such shares were purchased by me over the price which I paid for the shares. I hereby agree to notify the Company in writing within 30 days after the date  of any disposition of my shares and I will make adequate provision for Federal, state or other tax withholding obligations, if any, which arise upon the disposition of the Common Stock. The Company may, but will not be obligated to, withhold from my compensation the amount   necessary to meet any applicable withholding obligation including any withholding necessary to make available to the Company any tax deductions or benefits attributable to sale or early disposition of Common Stock by me. If I dispose of such shares at any time after the expiration of

the 2-year and 1-year holding periods, I understand that I will be treated for federal income tax purposes as having received income only at the time of such disposition, and that such income will be taxed as ordinary income only to the extent of an amount equal to the lesser of (1) the excess of the fair market value of the shares at the time of such disposition over the purchase price which I paid for the shares, or (2) 15% of the fair market value of the shares on the first day of the Offering Period. The remainder of the gain, if any, recognized on such disposition will be taxed as capital gain.

7.
I hereby agree to be bound by the terms of the Plan. The effectiveness of this Subscription Agreement is dependent upon my eligibility to participate in the Plan.

8.
In the event of my death, I hereby designate the following as my beneficiary(ies) to receive all payments and/or shares due me under the Plan:

NAME: (Please print)

(First)    (Middle)    (Last)

    
Relationship

    
Percentage Benefit    (Address) NAME: (Please print)
(First)    (Middle)    (Last)

    
Relationship

    
Percentage Benefit    (Address)

Employee's Social
Security Number:         

Employee's Address:

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT WILL REMAIN IN EFFECT THROUGHOUT SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:

    
Signature of Employee

Spouse's Signature (If beneficiary other than spouse)

SAMPLE WITHDRAWAL NOTICE

IKANOS COMMUNICATIONS

2004 EMPLOYEE STOCK PURCHASE PLAN NOTICE OF WITHDRAWAL
The undersigned participant in the Offering Period of the Ikanos Communications 2004 Employee Stock Purchase Plan that began on    ,    (the "Offering Date") hereby notifies the Company that he or she hereby withdraws from the Offering Period. He or she hereby directs the Company to pay to the undersigned as promptly as practicable all the payroll deductions credited to his or her account with respect to such Offering Period. The undersigned understands and agrees that his or her option for  such Offering Period will be automatically terminated. The undersigned understands further that no further payroll deductions will be made for the purchase of shares in the current Offering Period and the undersigned will be eligible to participate in succeeding Offering Periods only by delivering to the Company a new Subscription Agreement.

Name and Address of Participant:

Signature:

Date:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00242-of-00352.parquet"}]]