Document:

exv4w8

Exhibit 4.8

TRUST INDENTURE

between

FLEET LEASING RECEIVABLES TRUST

by

BNY TRUST COMPANY OF CANADA

as Issuer Trustee

and

COMPUTERSHARE TRUST COMPANY OF CANADA

as Indenture Trustee

Made as of November 16, 2009

 

 

TRUST INDENTURE

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 1 INTERPRETATION
	 	 	1	 
	1.1 Definitions
	 	 	1	 
	1.2 Meaning of “Outstanding” for Certain Purposes
	 	 	14	 
	1.3 References to Statutes
	 	 	14	 
	1.4 Extended Meanings
	 	 	15	 
	1.5 Sections and Headings
	 	 	15	 
	1.6 Governing Law of Indenture
	 	 	15	 
	1.7 Invalidity of Provisions
	 	 	15	 
	1.8 Computation of Time Periods
	 	 	15	 
	1.9 Non-Business Days
	 	 	15	 
	1.10 Accounting Principles
	 	 	16	 
	1.11 Currency
	 	 	16	 
	1.12 Time of the Essence
	 	 	16	 
	1.13 Approvals and Consents
	 	 	16	 
	1.14 Discontinuance and Changes in Designation of Ratings
	 	 	16	 
	1.15 References to Acts of the Trust
	 	 	17	 
	1.16 References to Rating Agency Condition
	 	 	17	 
	1.17 Language
	 	 	17	 
	ARTICLE 2 THE NOTES
	 	 	17	 
	2.1 Notes
	 	 	17	 
	2.2 Requirements for Initial Creation of Notes
	 	 	18	 
	2.3 Creation and Issuance in Series
	 	 	18	 
	2.4 Execution, Certification and Delivery
	 	 	19	 
	2.5 Temporary Notes
	 	 	20	 
	2.6 Registration, Transfer and Exchange
	 	 	21	 
	2.7 Persons Entitled to Payment
	 	 	22	 
	2.8 Mutilated, Destroyed, Lost or Stolen Notes
	 	 	22	 
	2.9 Cancellation and Destruction of Notes
	 	 	23	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	2.10 Protection of Notes
	 	 	23	 
	2.11 Access to List of Noteholders’ Names and Addresses
	 	 	23	 
	2.12 Certifying Agent
	 	 	24	 
	2.13 Book-Entry Notes
	 	 	25	 
	2.14 Payment of Notes
	 	 	28	 
	2.15 Payment Agreement for Notes
	 	 	29	 
	2.16 Interest Act
	 	 	29	 
	2.17 Repayment of Unclaimed Money
	 	 	29	 
	2.18 Maintenance of Records
	 	 	30	 
	2.19 Acknowledgements
	 	 	30	 
	ARTICLE 3 SUBORDINATION
	 	 	31	 
	3.1 Subordination
	 	 	31	 
	3.2 Rights of Noteholders Preserved
	 	 	31	 
	3.3 Renewal or Extension of Senior Notes
	 	 	31	 
	ARTICLE 4 SECURITY
	 	 	32	 
	4.1 Security for the Obligations Secured
	 	 	32	 
	4.2 Habendum
	 	 	33	 
	4.3 Reservation of Last Day of Leasehold Terms
	 	 	33	 
	4.4 Security Valid Irrespective of Advance of Moneys
	 	 	33	 
	4.5 Satisfaction and Discharge
	 	 	34	 
	4.6 Other Security Documents
	 	 	34	 
	ARTICLE 5 POSSESSION AND USE OF COLLATERAL
	 	 	34	 
	5.1 General
	 	 	34	 
	5.2 Collection Accounts
	 	 	35	 
	5.3 Location of Accounts
	 	 	36	 
	ARTICLE 6 COVENANTS OF THE TRUST
	 	 	36	 
	6.1 Positive Covenants
	 	 	36	 
	6.2 Negative Covenants
	 	 	40	 
	6.3 Indenture Trustee May Perform Covenants
	 	 	41	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	6.4 Right of Audit
	 	 	42	 
	6.5 Notices Regarding Financial Services Sub-Agent
	 	 	42	 
	ARTICLE 7 REPRESENTATIONS AND WARRANTIES
	 	 	42	 
	7.1 Representations and Warranties of the Trust
	 	 	42	 
	7.2 Representation and Warranty of Indenture Trustee
	 	 	45	 
	7.3 Survival of Representations and Warranties
	 	 	45	 
	ARTICLE 8 EVENTS OF DEFAULT
	 	 	45	 
	8.1 Related Event of Default
	 	 	45	 
	8.2 Acceleration of Maturity; Rescission and Annulment
	 	 	47	 
	8.3 Notice of Related Default or Related Event of Default
	 	 	49	 
	ARTICLE 9 REMEDIES
	 	 	49	 
	9.1 Collection Of Indebtedness And Suits For Enforcement By Indenture Trustee

	 	 	49	 
	9.2 Remedies; Priorities
	 	 	52	 
	9.3 Performance And Enforcement Of Certain Obligations
	 	 	53	 
	9.4 Optional Preservation Of The Related Collateral
	 	 	54	 
	9.5 Application of Moneys
	 	 	54	 
	9.6 Trust Moneys
	 	 	54	 
	9.7 Restoration Of Rights And Remedies
	 	 	55	 
	9.8 Delay Or Omission Not A Waiver
	 	 	55	 
	9.9 Control By Noteholders
	 	 	55	 
	9.10 Purchase by Specified Creditors
	 	 	56	 
	9.11 Protection of Persons Dealing with Indenture Trustee
	 	 	56	 
	9.12 Remedies Cumulative
	 	 	56	 
	9.13 The Trust to Execute Confirmatory Deed
	 	 	56	 
	9.14 Indenture Trustee Appointed Attorney
	 	 	56	 
	9.15 Credit Enhancement Agreements
	 	 	57	 
	9.16 Disclaimer of Marshalling
	 	 	57	 
	9.17 Appointment of Receiver
	 	 	58	 
	9.18 Holding in Trust
	 	 	59	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	ARTICLE 10 SUITS BY SPECIFIED CREDITORS AND INDENTURE TRUSTEE
	 	 	60	 
	10.1 Specified Creditors May Not Sue
	 	 	60	 
	10.2 Indenture Trustee Not Required to Possess Notes
	 	 	61	 
	10.3 Indenture Trustee May Institute All Proceedings
	 	 	61	 
	10.4 Application of Proceeds
	 	 	61	 
	ARTICLE 11 MEETINGS OF NOTEHOLDERS
	 	 	61	 
	11.1 Right to Convene Meetings
	 	 	61	 
	11.2 Record Dates
	 	 	62	 
	11.3 Notice of Meetings
	 	 	62	 
	11.4 Chairperson
	 	 	62	 
	11.5 Quorum
	 	 	62	 
	11.6 Power to Adjourn
	 	 	63	 
	11.7 Show of Hands
	 	 	63	 
	11.8 Poll
	 	 	63	 
	11.9 Voting
	 	 	63	 
	11.10 Regulations
	 	 	64	 
	11.11 The Trust and Indenture Trustee
	 	 	65	 
	11.12 Powers Exercisable by Extraordinary Resolution of all Noteholders
	 	 	65	 
	11.13 Powers Exercisable by Extraordinary Resolution of Holders of Series
	 	 	67	 
	11.14 Powers Exercisable by Extraordinary Resolution of Holders of Class
	 	 	68	 
	11.15 Meaning of “Extraordinary Resolution”
	 	 	69	 
	11.16 Powers Cumulative
	 	 	70	 
	11.17 Minutes
	 	 	70	 
	11.18 Instruments in Writing
	 	 	70	 
	11.19 Binding Effect of Resolutions
	 	 	71	 
	ARTICLE 12 THE INDENTURE TRUSTEE
	 	 	71	 
	12.1 Trust Indenture Legislation
	 	 	71	 
	12.2 Rights and Duties of Indenture Trustee
	 	 	71	 
	12.3 Conditions Precedent to Indenture Trustee’s Obligation to Act
	 	 	72	 

-iv-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	12.4 Experts and Advisors; Remuneration
	 	 	72	 
	12.5 Evidence of Compliance, Certificates of the Trust and Written Orders
	 	 	74	 
	12.6 Instruments Held By Indenture Trustee
	 	 	75	 
	12.7 Protection of Indenture Trustee
	 	 	76	 
	12.8 Resignation or Removal of Indenture Trustee; Conflict of Interest
	 	 	78	 
	12.9 Authority to Carry on Business
	 	 	79	 
	12.10 Power of Attorney for Quebec Registrations
	 	 	80	 
	12.11 Sub-attorney for Quebec Discharges
	 	 	81	 
	12.12 Revocation of Appointment
	 	 	81	 
	12.13 Acknowledgement by Specified Creditors
	 	 	81	 
	12.14 Successor Indenture Trustee By Merger
	 	 	81	 
	12.15 Eligibility; Disqualification
	 	 	82	 
	12.16 Acceptance of Trusts by Indenture Trustee
	 	 	82	 
	12.17 Confidentiality
	 	 	82	 
	ARTICLE 13 SUPPLEMENTAL INDENTURES AND AMENDMENTS
	 	 	83	 
	13.1 Supplemental Indentures
	 	 	83	 
	13.2 Automatic Amendment
	 	 	84	 
	13.3 Amendments to Programme Agreements
	 	 	84	 
	13.4 Determination of Material Adverse Effect
	 	 	85	 
	ARTICLE 14 NOTICES
	 	 	86	 
	14.1 Notice to Trust and Issuer Trustee
	 	 	86	 
	14.2 Notice to Indenture Trustee
	 	 	87	 
	14.3 Notice to Noteholders
	 	 	88	 
	14.4 Notice to Other Specified Creditors
	 	 	88	 
	14.5 Notice to Rating Agencies
	 	 	88	 
	14.6 Change of Address
	 	 	88	 
	ARTICLE 15 GENERAL
	 	 	89	 
	15.1 Evidence of Rights of Specified Creditors
	 	 	89	 
	15.2 Trust Obligation
	 	 	89	 

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TABLE OF CONTENTS

(continued)

	 	 	 	 	 
	 	 	Page	 
	15.3 No Petition
	 	 	89	 
	15.4 Subordination
	 	 	90	 
	15.5 Limited Recourse
	 	 	90	 
	15.6 Execution of Counterparts
	 	 	91	 
	15.7 Delivery of Executed Copies
	 	 	91	 

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TRUST INDENTURE

          TRUST INDENTURE made as of November 16, 2009, between BNY TRUST COMPANY OF CANADA, a trust
company established under the laws of Canada and licensed to carry on business in each of the
provinces and territories of Canada in its capacity as trustee of FLEET LEASING RECEIVABLES TRUST,
a trust established under the laws of the Province of Ontario pursuant to a declaration of trust
made November 2, 2009 as amended and restated on November 16, 2009 (in such capacity, the “Trust”),
and COMPUTERSHARE TRUST COMPANY OF CANADA, a trust company established under the laws of Canada and
licensed to carry on business in each of the provinces and territories of Canada.

          WHEREAS the Trust is desirous of creating and issuing from time to time asset-backed notes in
the manner hereinafter provided;

          NOW THEREFORE THIS INDENTURE WITNESSES that, in consideration of the covenants and agreements
herein contained, the parties hereto agree as follows:

ARTICLE 1

INTERPRETATION

1.1 Definitions.

          In this Indenture, the following terms will have the following meanings:

“Act” means the Securities Act (Ontario), as in effect from time to time;

“Affiliate” means, with respect to any specified Person, any other Person directly or
indirectly controlling, controlled by or under common control with such specified Person
and, for the purposes of this definition, “control” means, in respect of any specified
Person, the power to direct the management and policies of such Person, directly or
indirectly, whether through the ownership of voting securities, by contract or otherwise,
and the terms “controlling” and “controlled” have meanings correlative to the foregoing;

“Asset Interests” means whole or undivided percentage interests in, or interests in pools
of, (i) rights to the payment of money arising from accounts, intangibles, chattel paper,
conditional sales contracts, leases, instruments and securities, mortgages, charges or
hypothecs of land or immovable property or of personal or movable property or evidenced in
some other manner, including all rights to payment of interest or financing charges with
respect thereto and all proceeds thereof which are purchased or otherwise acquired by; (ii)
contracts or lease rights evidencing or giving rise to rights described in (i) which are
purchased or otherwise acquired by; (iii) securities collateralized by or securities
evidencing interests (whether undivided or otherwise) in, rights described in (i) which are
purchased or otherwise acquired by; and (iv) loans or other obligations secured by rights
described above (together with such security) and unsecured loans or other
obligations extended by or in favour of, the Trust pursuant to Securitization Agreements and
further includes, without limitation, all security (including, without limitation, cash
collateral and policies of insurance) and guarantees of or held by any Person pertaining to
the assets of, or other rights against, such Person or any other Person which the Trust has

 

 

purchased or otherwise acquired in connection with any of the foregoing and all Reserves;

“Back-Up Servicer” means Wells Fargo Bank, National Association, or any successor or assign,
or any other Person who may be appointed as back-up servicer for purposes hereof or of any
Securitization Agreement, in place thereof;

“Beneficiary” has the meaning ascribed thereto in the Declaration of Trust;

“Book-Entry Noteholder” means, with respect to a Book-Entry Note, the Person who is the
beneficial owner of a Book-Entry Note;

“Book-Entry Notes” means the Notes held through the Book-Entry System as described in
Section 2.13; provided that after the occurrence of an event whereupon book-entry transfers
are no longer permitted and Definitive Notes have been issued to holders of any Book-Entry
Notes, such Book-Entry Notes shall no longer be effective;

“Book-Entry System” means the record entry securities transfer and pledge system
administered by the Clearing Agency in accordance with its operating rules and procedures;

“Business Day” means any day of the year, other than a Saturday, Sunday or statutory or
civic holiday, on which banks are open for business in Toronto, Ontario;

“Canadian Dollars” and “Cdn. $” means the lawful money of Canada;

“CDS” means CDS Clearing and Depository Services Inc., its successors and assigns;

“Certificate of the Trust” means a certificate executed by an authorized officer of the
Issuer Trustee as trustee of the Trust or of the Financial Services Agent or the Financial
Services Sub-Agent on behalf of the Trust;

“Class” means, in respect of a Series, a class of Notes of such Series issued pursuant to
this Indenture and the Related Supplement;

“Clearing Agency” means CDS or, if otherwise specified in the Related Supplement with
respect to the Notes of any particular Series, any other “clearing agency” as defined in the
Act or as registered with the Securities and Exchange Commission;

“Clearing Agency Letter of Representation” means any letter of representation, book entry
only securities services agreement, book entry only acknowledgement or similar
document provided by the Trust to a Clearing Agency with respect to procedures under the
Book-Entry System;

“Collateral” means the property, assets, undertaking and agreements of the Trust and all
rights and benefits accruing thereunder mortgaged, charged, pledged, granted,

- 2 -

 

transferred, assigned, hypothecated and set over as security for the Obligations Secured in accordance
with Article 4;

“Collections” means all cash collections and other cash proceeds of Asset Interests
including, without limitation, (i) all payments by a Credit Enhancer under any Credit
Enhancement Agreement, (ii) all proceeds of any Related Collateral and any collection of
such Asset Interests or any proceeds of sale of such Asset Interests deemed to have been
received pursuant to a Securitization Agreement by the Trust, or any agent on behalf of the
Trust, including the Financial Services Agent, the Financial Services Sub-Agent or any
Servicer of such Asset Interests, and (iii) without limitation to the foregoing (but only to
the extent so provided in a Related Securitization Agreement), any amounts paid to the Trust
under any Hedging Transaction entered into in connection with such Asset Interests or any
Notes, but (iv) with respect to any Asset Interests acquired under a particular
Securitization Agreement, excluding any amounts expressly excluded from “Collections” under
and as defined in such Securitization Agreement;

“Counsel” means any barrister or solicitor or firm of barristers and solicitors retained by
the Indenture Trustee, which may include counsel to the Trust;

“Credit Enhancement” means any form of credit enhancement (howsoever characterized) for any
Obligations Secured or any Asset Interests including, without limitation, any letter of
credit, insurance policy, surety bond, cash reserve account, spread account, guaranteed rate
agreement, liquidity facility, tax protection agreement or other similar agreement
established for the benefit of the Notes (or a Series or Class), as applicable, and
including any facility provided by a Person to the Trust which is specified or acknowledged
in writing by the Trust as “Credit Enhancement” for purposes hereof but excluding, for
greater certainty, Subordinated Notes and Reserves;

“Credit Enhancement Agreement” means any agreement entered into between the Trust or a
Custodian and one or more Persons providing Credit Enhancement to the Trust or a Custodian;

“Credit Enhancer” means any Person providing Credit Enhancement to the Trust or a Custodian
pursuant to a Credit Enhancement Agreement and any successor or assign of such Person;

“Custodial Agreement” means a custodial agreement entered into among, inter alia, an
Originator and a Custodian;

“Custodian” means a Person appointed as custodian of assets for the benefit of an Originator
and one or more other Persons in accordance with a Custodial Agreement, which may include a
Securitization Agreement, and any successor custodian appointed in accordance with the terms
of such agreement;

- 3 -

 

“Dealer” means one or more Persons (other than the Trust, an Originator or a Credit
Enhancer) who are parties to an Underwriting Agreement for the purpose of facilitating the
sale and distribution of the Notes referred to in an Underwriting Agreement;

“Declaration of Trust” means the declaration of trust made on November 2, 2009 (and amended
and restated on November 16, 2009) providing for the establishment of the Trust as a trust
under the laws of the Province of Ontario;

“Definitive Notes” means fully registered certificates (not in temporary form) representing
Notes in the form specified in the Related Supplement;

“Distribution Date” means, in respect of any Notes, any day in a month upon which periodic
payments of principal and/or interest are to be paid on such Notes;

“Eligible Institution” means, with respect to any Series of Notes, a bank, trust company or
loan company chartered or licensed under the laws of Canada or any province thereof
(including an Affiliate of the Issuer Trustee or the Indenture Trustee) which (a) has, or
has its obligations guaranteed by an institution that has, the long-term or short-term debt
rating then required by the Related Rating Agencies, or (b) satisfies the Rating Agency
Condition;

“Eligible Investments” means investments permitted to be made by the Trust under a
Securitization Agreement;

“Equivalent Amount” means, on any given date, the amount of Canadian Dollars resulting from
the conversion of a specified amount of any other currency converted (i) at the spot rate
quoted on such date for wholesale transactions by Bank of New York; or (ii) if the specified
amount of such other currency is the subject of a Hedging Transaction which provides for the
delivery of or conversion to an equivalent amount of Canadian Dollars, the specified amount
of such other currency shall be deemed to be converted to an amount in Canadian Dollars at
the effective rate under such Hedging Transaction;

“Extraordinary Resolution” means a resolution described in Section 11.15;

“Financial Services Agent” means PHH Vehicle Management Services Inc., its assigns and any
successor financial services agent to the Trust appointed in replacement thereof as
permitted under the Financial Services Agreement;

“Financial Services Agreement” means the financial services agreement made as of November
16, 2009 between the Trust and the Financial Services Agent;

“Financial Services Sub-Agency Agreement” means the financial services sub-agency agreement
made as of November 16, 2009 between the Trust, the Financial Services Agent and the
Financial Services Sub-Agent;

- 4 -

 

“Financial Services Sub-Agent” means BNY Trust Company of Canada, its assigns and any
successor financial services sub-agent appointed in replacement thereof as permitted under
the Financial Services Sub-Agency Agreement;

“Hedging Transaction” means any rate swap transaction, basis swap, forward rate transaction,
commodity swap, commodity option, equity or equity index swap, equity or equity index
option, bond option, interest rate option, forward exchange transaction, cap transaction,
floor transaction, collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option, total return swap transaction and any other similar
transaction or any combination of these transactions entered into from time to time by the
Trust in connection with or related to the Notes or any Asset Interests;

“Hypothec” means a deed of hypothec to be granted by the Trust in favour of the Indenture
Trustee under the laws of the Province of Quebec for the purposes of further assuring the
Collateral, or a part thereof, to the Indenture Trustee for the benefit of Specified
Creditors;

“Indenture Trustee” means Computershare Trust Company of Canada, as indenture trustee
hereunder or as the fondé de pouvoir under a Hypothec, and its successors and assigns in
such capacity, or any successor or replacement thereto appointed pursuant to Article 12;

“Issuer Trustee” means BNY Trust Company of Canada and its successors and assigns, as issuer
trustee of the Trust, or any successor or replacement thereto appointed pursuant to the
Declaration of Trust;

“ITA” means the Income Tax Act (Canada);

“Limited Recourse Condition” has the meaning ascribed thereto in the Declaration of Trust;

“Note Purchase Agreement” means any agreement which may be entered into from time to time
between the Trust and a Person or Persons providing for the purchase and sale of Notes;

“Note Registers” means the registers, which may be in electronic or physical form, providing
for the registration of the Notes which the Indenture Trustee is required to maintain
pursuant to Section 2.6;

“Noteholder” means the Person in whose name the Note is registered in the applicable Note
Register from time to time in accordance with the provisions of this Indenture;

“Notes” means the asset-backed notes from time to time issued in Series pursuant to this
Indenture and any Related Supplement, which Series may include one or more Classes of Notes;

- 5 -

 

“Obligations Secured” means all present and future debts, expenses and liabilities, direct
or indirect, absolute or contingent, due, owing or accruing due or owing from time to time
by the Trust to the Specified Creditors in their capacity as such, including, without
limitation, (i) the unpaid face amount, outstanding at such time, of any Notes issued on a
discount basis, discounted to their present value using a discount rate equivalent to the
yield to maturity of such Notes when they were issued; (ii) the principal amount owing at
such time, together with the accrued and unpaid interest on interest-bearing Notes; and
(iii) accrued fees, whether or not then due and payable;

“Obligor” means a Person obligated to make payments with respect to Asset Interests, whether
as principal debtor or guarantor thereof, and its successors and assigns;

“Originator” means PHH VMS, PHH LP or any of their respective Affiliates, and their
respective successors and assigns;

“Participant” means a broker, dealer, bank or other financial institution or other Person
who is a participant in the Book-Entry System and on whose behalf a Clearing Agency or its
nominee holds Notes;

“Paying Agent” means any paying agent or co-paying agent appointed pursuant to, or in
accordance with, the Related Supplement;

“Permitted Investment” means, in relation to the investment of funds on deposit in Series
Accounts, investments which satisfy the criteria for Eligible Investments in the Related
Securitization Agreement;

“Permitted Liens” means (i) liens for taxes, assessments or other governmental charges,
levies, or imposts on the assets of the Trust not at the time delinquent or thereafter
payable without penalty or contested in good faith by appropriate proceedings and for which
adequate reserves, in accordance with generally accepted accounting principles shall have
been set aside on the Trust’s books; (ii) the security constituted hereby; and (iii) such
liens or other encumbrances expressly permitted in any of the other Programme Agreements;

“Person” means any individual, corporation, estate, partnership, trust (including any
beneficiary thereof), joint venture, association, joint stock company, unincorporated
organization, government (or any agency or political subdivision thereof), or any other
entity whether acting as an individual, fiduciary or in any other capacity;

“PHH LP” means PHH Fleet Lease Receivables L.P., and its successors and permitted assigns
under any applicable Securitization Agreement;

“PHH VMS” means PHH Vehicle Management Services Inc., and its successors and permitted
assigns under any applicable Securitization Agreement;

- 6 -

 

“PPSA” means (a) the personal property security legislation as in effect in each province or
territory of Canada (other than Quebec), and (b) the Civil Code of Quebec as in effect in
Quebec (but excluding any portions of the Civil Code of Quebec which are not equivalent to
the PPSA of the provinces or territories described in clause (a));

“Principal Terms” means, with respect to the Notes of any particular Series:

	 	(a)	 	the name or designation of each Class of Notes of such Series and, if such
Series consists of more than one Class, the rights and priorities of each such Class;

	 	(b)	 	the aggregate principal amount of each Class of Notes of such Series which may
be issued;

	 	(c)	 	the interest rates, if any, applicable to each Class of Notes of such Series
and the period over which any interest is to accrue;

	 	(d)	 	the Distribution Dates, if any, applicable to each Class of Notes of such
Series;

	 	(e)	 	the language and currency of such Notes;

	 	(f)	 	the method for allocating principal and interest and other Collections to fund
payments to each Class of Notes of such Series;

	 	(g)	 	the forms of each Class of Notes of such Series;

	 	(h)	 	the final maturity dates of each Class of Notes of such Series and any expected
final payment dates;

	 	(i)	 	a description of the items, if any, required to be delivered to the Indenture
Trustee on the Related Series Issuance Date in addition to those specified in Section
2.3(2);

	 	(j)	 	whether such Notes are to be Definitive Notes or Book-Entry Notes and any
limitations imposed thereon;

	 	(k)	 	the minimum amounts and denominations in which such Notes may be issued, if
applicable;

	 	(l)	 	any additional or alternative Related Events of Default;

	 	(m)	 	provisions which this Indenture requires or permits to be specified in a
Related Supplement;

	 	(n)	 	any terms which amend, supplement, modify, restate or replace the terms of this
Indenture as such pertain to such Notes;

- 7 -

 

	 	(o)	 	any other provisions expressing or referring to the terms or conditions upon
which the Notes of such Series are to be issued or obtained under this Indenture and
the Related Supplement;

	 	(p)	 	the designation of any Series Accounts and the terms governing the operation of
such Series Accounts;

	 	(q)	 	the priority of such Series with respect to any other Series;

	 	(r)	 	the specification of any Related Securitization Agreement; and

	 	(s)	 	the Rating Agency or Rating Agencies, if any, rating such Series;

 “Proceeding” means, with respect to any Series and the Related Obligations Secured, any suit
in equity, action at law or other judicial or administrative proceeding;

 “Programme Agreements” means, at any time, collectively, this Indenture, any Related
Supplement, any Hypothec, the Declaration of Trust, the Financial Services Agreement, the
Financial Services Sub-Agency Agreement, any agreements relating to Hedging Transactions,
Securitization Agreements, Credit Enhancement Agreements, Servicing Agreements, agreements
under which a Back-Up Servicer is engaged to act in such capacity, Subordinated Loan
Agreements, Custodial Agreements, Note Purchase Agreements, Underwriting Agreements and
indemnities of Originators in favour of the Trust, in each case, in effect at such time;

 “Rating Agencies” means, with respect to any Notes at any time, each credit rating agency
which at the request of the Trust are rating such Notes;

 “Rating Agency Condition” means, with respect to any Series, a condition which is met when,
after the delivery of notice of any action or proposed action has been provided to each
Related Rating Agency, such Related Rating Agencies notify the Trust in writing that such
action, or proposed action, will not result in the downgrade or withdrawal of such Rating
Agencies’ then current rating of the Notes of such Series which are then outstanding;

 “Receiver” means one or more of a receiver, receiver-manager or receiver and manager of all
or a portion of any Collateral appointed pursuant to Article 9;

 “Record Date” means, for any Distribution Date, the close of business on the date
immediately preceding the Distribution Date, or if the relevant Notes are Definitive Notes,
the last day of the month preceding such Distribution Date or, in respect of any Series of
Notes, such other date as may be specified in the Related Supplement;

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 “Related” is used in reference to the Notes of a particular Series and means, when used in
conjunction with:

	 	(a)	 	“Asset Interests”: the Asset Interests the purchase or other acquisition by
the Trust, or creation, of which is financed or refinanced, in whole or in part, by the
issuance of such Notes;

	 	(b)	 	“Back-Up Servicer”: a Back-Up Servicer of Related Asset Interests;

	 	(c)	 	“Class”: each Class of such Series;

	 	(d)	 	“Collateral”: that portion of the Collateral comprising (i) the Related Asset
Interests; (ii) any Related Collections thereof; (iii) all amounts in the Series
Accounts in respect of such Series; (iv) all amounts available under any Related Credit
Enhancement Agreement; (v) all amounts in the Related Collateral Accounts and Related
Payment Accounts; (vi) all investments thereof and the proceeds of such investments;
and (vii) all rights under the Related Programme Agreements;

	 	(e)	 	“Collateral Accounts”: those accounts into which the proceeds of Related
Collection Accounts, any further Related Collections and the proceeds of sale of any
Related Collateral are to be deposited pursuant to Section 9.5;

	 	(f)	 	“Collection Accounts”: those accounts of the Trust or a Custodian specified in
the Related Supplement or Related Securitization Agreement as “Collection Accounts”
into which Related Collections are to be deposited;

	 	(g)	 	“Collections”: all Collections with respect to Related Asset Interests;

	 	(h)	 	“Credit Enhancement”: Credit Enhancement provided pursuant to a Related Credit
Enhancement Agreement in respect of such Notes or the Related Asset Interests;

	 	(i)	 	“Credit Enhancement Agreement”: a Credit Enhancement Agreement pursuant to
which Credit Enhancement has been provided in respect of such Notes or the Related
Asset Interests;

	 	(j)	 	“Credit Enhancer”: a Credit Enhancer under a Related Credit Enhancement
Agreement;

	 	(k)	 	“Custodial Agreement”: a Custodial Agreement pursuant to which custodial
services are being provided in respect of Related Asset Interests and/or Related
Obligations Secured;

	 	(l)	 	“Custodian”: a Custodian under a Related Custodial Agreement or Related
Securitization Agreement;

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	 	(m)	 	“Dealers”: the Dealers party to the Related Underwriting Agreement in respect
of such Notes;

	 	(n)	 	“Default”: any occurrence that is, or with notice or the lapse of time or both
would become, a Related Event of Default;

	 	(o)	 	“Distribution Date”: a Distribution Date specified in the Related Supplement;

	 	(p)	 	“Event of Default”: each Related Event of Default described in Section 8.1 in
respect of such Notes or specified in the Related Supplement;

	 	(q)	 	“Hedging Transaction”: a Hedging Transaction relating to such Notes or to the
Related Asset Interests;

	 	(r)	 	“Hypothec”: a Hypothec granted by the Trust in favour of the Indenture Trustee
under the laws of the Province of Quebec for the purposes of further securing the
Related Collateral, or a part thereof, in favour of the Indenture Trustee for the
benefit of the Related Specified Creditors;

	 	(s)	 	“Note Purchase Agreement”: a Note Purchase Agreement pursuant to which one or
more Classes of such Notes are being sold by the Trust to one or more Persons;

	 	(t)	 	“Noteholder”: a Noteholder of or with respect to such Series;

	 	(u)	 	“Notes”: a Note of such Series;

	 	(v)	 	“Obligations Secured”: all Obligations Secured relating to the holders of such
Notes and to Related Specified Creditors under the Related Programme Agreements,
including the Related Trust Expenses;

	 	(w)	 	“Originator”: the Originator under a Related Securitization Agreement;

	 	(x)	 	“Paying Agent”: a Paying Agent under a Related Supplement;

	 	(y)	 	“Payment Account”: an account which may be established and maintained by the
Trust for the Notes of such Series, which may be a Related Collection Account;

	 	(z)	 	“Programme Agreements”: this Indenture, the Declaration of Trust, the
Financial Services Agreement, the Financial Services Sub-Agency Agreement and any other
Programme Agreement to which the Trust is a party relating to such Notes or the Related
Asset Interests;

	 	(aa)	 	“Proportionate Share”: at any time the outstanding principal amount of Notes
of such Series at such time divided by the outstanding principal amount of all Notes of
all Series at such time;

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	 	(bb)	 	“Rating Agency”: a Rating Agency which has established a rating for all or any
Classes of such Notes;
	 
	 	(cc)	 	“Reserve”: a Reserve under or relating to a Related Securitization Agreement
and specified as such in the Related Supplement;
	 
	 	(dd)	 	“Securitization Agreement”: a Securitization Agreement entered into by the
Trust in connection with the purchase, other acquisition, creation, sale or other
disposition of Related Asset Interests;
	 
	 	(ee)	 	“Series Issuance Date”: the date upon which the first of such Notes are issued
or to be issued;
	 
	 	(ff)	 	“Servicer”: the Servicer of Related Asset Interests under a Related
Securitization Agreement, a Related Servicing Agreement or other agreement entered into
by the Trust and any Person providing for the servicing of Related Asset Interests,
including a Back-Up Servicer of Related Asset Interests who, at the time in question,
has assumed the role of Servicer thereof or any other replacement Servicer of Related
Asset Interests;
	 
	 	(gg)	 	“Servicing Agreement”: a Servicing Agreement providing for the servicing of
the Related Asset Interests;
	 
	 	(hh)	 	“Significant Event”: a Significant Event affecting such Notes or the Related
Asset Interests;
	 
	 	(ii)	 	“Specified Creditors”: collectively, the holders of such Notes, Related Credit
Enhancers, Swap Counterparties with respect to Related Hedging Transactions, Related
Servicers (including any Originator which is a Related Servicer), Related Back-Up
Servicers, Related Originators (in respect of amounts owing under Related
Securitization Agreements or Related Subordinated Loan Agreements or otherwise for
Related Reserves), Related Custodians, Related Dealers, and the Indenture Trustee,
Issuer Trustee, the Financial Services Sub-Agent and Financial Services Agent to the
extent their claims relate to such Notes or the Related Asset Interests;
	 
	 	(jj)	 	“Subordinated Loan Agreement”: a Subordinated Loan Agreement in respect of
such Notes and the Related Asset Interests;
	 
	 	(kk)	 	“Supplement”: a supplement to this Indenture executed in connection with the
issuance of such Notes;

	 	(ll)	 	“Trust Expenses”: those expenses of the Trust which are attributable to a
specific Series or otherwise on a Related Proportionate Share basis; and
	 
	 	(mm)	 	“Underwriting Agreement”: an Underwriting Agreement in respect of such Notes;

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“Reserve” means an amount or amounts paid or otherwise contributed by, or held back from
payments otherwise due to an Originator under or relating to a Securitization Agreement, and
includes, without limiting the foregoing, amounts characterized as deferred purchase prices,
deferred rentals, deposits, premiums, recourse provisions, commitments to purchase assets in
default, spread accounts, subordinated loans, senior/subordinated security structures,
subordinated standby lines of credit, letters of credit, equity and over-collateralization;

“Securitization Agreements” means any pooling and servicing agreement, sale and servicing
agreement, receivables purchase agreement, co-ownership agreement, co-ownership series
purchase agreement, concurrent lease agreement, collateral covenant agreement, loan
agreement or other agreement (howsoever named) entered into by the Trust or a Custodian, and
an Originator or any other Person, in connection with a program structured by or on behalf
of the Trust to provide for one or more advances or payments to such Originator or other
Person in connection with the purchase or other acquisition by, or the creation, sale or
other disposition of Asset Interests to, the Trust as or otherwise provided for therein, and
includes any agreement specified as a Related Securitization Agreement in a Related
Supplement;

“Security Interests” means any security interest, mortgage, pledge, hypothec, assignment,
deposit arrangement, encumbrance, lien (statutory or otherwise), preference, priority or
other security agreement or preferential arrangement of any kind or nature whatsoever,
including any conditional sale or title retention agreement and any financing lease having
substantially the same economic effect as any of the foregoing;

“Senior Notes” means any Class of Notes of a Series which has been designated as such in the
Related Supplement or, failing which, any Class of Notes which is senior in right of payment
to the Notes of all other Related Classes and, for purposes of Article 3, includes any Notes
of any Related Class which, pursuant to the Related Supplement, are senior in right of
payment to the Notes of any other Related Class;

“Series” means any series of Notes issued pursuant to this Indenture and any Related
Supplement;

“Series Accounts” has, with respect to any Series or Class, the meaning specified in the
Related Supplement or Related Securitization Agreement and includes the Related Collection
Accounts for such Series or Class;

“Servicer” means a Person designated to collect payments in respect of Asset Interests and
to perform other tasks associated therewith under a Securitization Agreement or a Servicing
Agreement, and its successors and assigns, including a Back-Up Servicer of Asset Interests
who, at the time in question, has assumed the role of Servicer thereof or any other
replacement Servicer;

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“Servicing Agreement” means any agreement (including a Securitization Agreement) entered
into between the Trust and any Person providing for the administration or servicing of Asset
Interests;

“Significant Event” means any event which would or, with the passage of time or giving of
notice would, permit the Trust or a Custodian to exercise any remedy against any other party
to a Programme Agreement or change the manner in which the proceeds of Asset Interests would
be applied to repay any Obligations Secured, including, without limitation, those owing to
any Noteholder, or change the manner in which the proceeds of Asset Interests would be
allocated to the Trust pursuant to a Securitization Agreement;

“Specified Creditors” means, collectively, Noteholders, Credit Enhancers, the Financial
Services Agent, the Financial Services Sub-Agent, the Indenture Trustee, Custodians, Swap
Counterparties, the Issuer Trustee, the Originators (in respect of amounts owing under
Securitization Agreements or Subordinated Loan Agreements or otherwise for Reserves),
Dealers, Back-Up Servicers and Servicers (including any Originator which is a Servicer);

“Subordinated Loan Agreement” means any loan agreement between an Originator and the Trust,
pursuant to which such Originator (or its Affiliate) lends money to the Trust for the
purpose of financing the payment by the Trust of expenses payable by the Trust in connection
with the transactions contemplated pursuant to the Programme Agreements;

“Subordinated Notes” means any Class of Notes of a Series which are, pursuant to the Related
Supplement, subordinate and junior in right of payment to the Notes of any other Class of
such Series;

“Swap Counterparty” means a party (other than the Trust) to a Hedging Transaction, and its
successors and assigns;

“Trust Property” means, as of any particular time, all assets of the Trust and all property,
real, personal or otherwise, tangible or intangible, which has been transferred, conveyed or
paid to, or acquired by the Trust, including all Asset Interests and all income, earnings,
profits and gains therefrom, and which at such time are owned or held by the Trust;

“Underwriting Agreement” means any underwriting, agency or other agreement which may be
entered into from time to time between the Trust and one or more Dealers providing for the
sale and distribution of Notes of the Trust; and

“Written Order” means an order of the Trust duly executed by the Issuer Trustee, the
Financial Services Sub-Agent or the Financial Services Agent delivered in writing or sent by
facsimile or electronic mail.

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1.2 Meaning of “Outstanding” for Certain Purposes.

          Subject to the terms of a Related Supplement, each Note issued and certified in accordance
with the terms hereof will be deemed to be outstanding until it has been surrendered by the holder
thereof to the Indenture Trustee and cancelled by the Indenture Trustee, or until money for the
payment thereof in the necessary amount has been deposited with the Indenture Trustee for the
Noteholders; provided, however, that:

	 	(a)	 	Notes which have been partially redeemed, purchased, converted
or exchanged shall be deemed to be outstanding only to the extent of the
unredeemed, unpurchased, unconverted or unexchanged part of the principal
amount thereof; and
	 
	 	(b)	 	where a new Note has been issued in substitution for a Note
which has been mutilated, destroyed, lost or stolen, only the substituted Note
will be counted for the purpose of determining the aggregate principal amount
of Notes outstanding.

          In determining whether Noteholders holding the requisite percentage of Notes of any Class have
given any request, demand, authorization, direction, notice, consent, vote or waiver pursuant to
this Indenture, Notes owned by any Originator, any Servicer or an Affiliate of either, shall be
disregarded and deemed not to be outstanding, except that:

	 	(a)	 	in determining whether the Trust and the Indenture Trustee
shall be protected in relying upon any such request, demand, authorization,
direction, notice, consent, vote or waiver, only the Notes which the Trust or
the Indenture Trustee, as the case may be, knows to be so owned shall be so
disregarded;
	 
	 	(b)	 	Notes so owned which have been pledged in good faith, other
than to the Trust or the Issuer Trustee, as trustee of the Trust, shall not be
disregarded and may be regarded as outstanding if the pledgee establishes to
the satisfaction of the Trust or the Indenture Trustee the pledgee’s right so
to act with respect to such Notes and that the pledgee is not an Originator or
an Affiliate of an Originator; and
	 
	 	(c)	 	such Originator, Servicer or an Affiliate of either that is a
holder of Subordinated Notes shall be entitled to take any such actions as
holders of such Subordinated Notes held by any of them.

1.3 References to Statutes.

          Unless otherwise specified herein, all references herein to any statute or any provision
thereof shall mean such statute or provision as the same may be amended, re-enacted or replaced
from time to time.

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1.4 Extended Meanings.

          Words importing the singular number only will include the plural and vice versa and words
importing any gender will include all genders. Unless the context requires otherwise, a reference
in this Indenture to any agreement, instrument or declaration means such agreement, instrument or
declaration as the same may be amended, supplemented, modified, restated or replaced from time to
time. Any reference herein to “include”, “includes” or “including” means “include without
limitation”, “includes without limitation” or “including without limitation”, as applicable.

1.5 Sections and Headings.

          The table of contents does not form part of this Indenture. The division of this Indenture
into Articles and Sections and the insertion of headings are for convenience of reference only and
will not affect the construction or interpretation of this Indenture. The terms “this Indenture”,
“hereof”, “hereunder” and similar expressions refer to this Indenture and not to any particular
Article, Section or other portion of this agreement and include any agreement or instrument
supplemental or ancillary hereto. Unless something in the subject matter or context is
inconsistent therewith, references herein to Articles and Sections are to Articles and Sections of
this Indenture.

1.6 Governing Law of Indenture.

          This Indenture will be governed by and construed in accordance with the laws of the Province
of Ontario and the federal laws of Canada applicable therein and each of the parties hereto attorn
to the non-exclusive jurisdiction of the Courts of the Province of Ontario.

1.7 Invalidity of Provisions.

          Except for any provision or covenant contained herein which is fundamental to the subject
matter of this Indenture (including, without limitation, those that relate to the payment of
money), if one or more provisions of this Indenture is for any reason whatever held invalid, such
provision will be deemed severable from the remaining covenants, agreements and provisions of this
Indenture and will in no way affect the validity or enforceability of such remaining provisions or
the rights of any parties hereto.

1.8 Computation of Time Periods.

          In this Indenture, with respect to the computation of periods of time from a specified date to
a later specified date, unless otherwise expressly stated, the word “from” means “from and
including” and the words “to” and “until” each means “to but excluding”.

1.9 Non-Business Days.

          Whenever any payment to be made hereunder shall be stated to be due, any calculation is to be
made or any other action to be taken hereunder shall be stated to be required to be taken on a day
other than a Business Day, such payment shall be made, such calculation

- 15 -

 

shall be made and such other action shall be taken on the next succeeding Business Day and an extension of time shall be
included for such purposes.

          Any payment made after 3:00 p.m. (Toronto time) on a Business Day shall be deemed to be made
on the next following Business Day.

1.10 Accounting Principles.

          Where the character or amount of any asset or liability or item of revenue or expense is
required to be determined, or any consolidation or other accounting computation is required to be
made for the purpose of this Indenture, such determination or calculation will, to the extent
applicable and except as otherwise specified herein or as otherwise agreed in writing by the
parties, be made in accordance with generally accepted accounting principles applied on a
consistent basis. Wherever in this Indenture reference is made to generally accepted accounting
principles, such reference will be deemed to be to Canadian generally accepted accounting
principles from time to time approved by the Canadian Institute of Chartered Accountants, or, where
so elected by the relevant Person, as approved by the Financial Accounting Standards Board, or in
either event any successor institute, until such time as the reporting entity in question is
required to or chooses to adopt International Financial Reporting Standards, in which case such
reference will be deemed to be to the International Financial Reporting Standards as published by
the International Accounting Standards Board, or any successor accounting standards board, in each
case, applicable as at the date on which such calculation is made or required to be made in
accordance with such generally accepted accounting principles. To the extent that the definitions
of accounting terms in this Indenture or in any certificate or other documents are inconsistent
with the meaning of such terms under generally accepted accounting principles, the definitions in
this Indenture or in any such certificate or other document shall prevail.

1.11 Currency.

          Unless stated otherwise, all amounts herein are stated in Canadian Dollars.

1.12 Time of the Essence.

          Time shall be of the essence of this Indenture.

1.13 Approvals and Consents.

          All references in this Indenture that require the approval or consent of any Person shall mean
the approval or consent of such person in writing. Except to the extent a contrary intention is
expressly set forth herein, whenever a party is to provide its approval or consent, such approval
or consent shall not be unreasonably withheld or delayed.

1.14 Discontinuance and Changes in Designation of Ratings.

          In applying any definition or other term or provision hereof which contemplates a specific
rating of a rating agency at a time, (a) each rating agency specified will include any

- 16 -

 

successor thereof at the time (whether as a result of a change in name, an amalgamation, merger or other
reorganization, or otherwise), (b) if a specified rating agency and any successor ceases to exist,
the reference to such rating agency and its ratings shall not be applicable, and (c) if a specified
rating agency changes the designation of its debt rating categories, the debt rating categories
specified will refer to each debt rating category of the rating agency at the time which can
reasonably be determined to be equivalent to the specified rating categories of the rating agency.

1.15 References to Acts of the Trust.

          For greater certainty, where any reference is made in this Indenture, or in any other
instrument executed pursuant hereto or contemplated hereby to which the Trust or the Issuer
Trustee, as trustee of the Trust, is party, to an act to be performed by, an appointment to be made
by, an obligation or liability of, an asset or right of, a discharge or release to be provided by,
a suit or proceeding to be taken by or against, or a covenant, representation or warranty (other
than relating to the constitution or existence of the Trust or the Issuer Trustee) by or with
respect to (i) the Trust; or (ii) the Issuer Trustee, such reference shall be construed and applied
for all purposes as if it referred to an act to be performed by, an appointment to be made by, an
obligation or liability of, an asset or right of, a discharge or release to be provided by, a suit
or proceeding to be taken by or against or a covenant, representation or warranty (other than
relating to the constitution or existence of the Trust) by or with respect to, the Issuer Trustee
as trustee of the Trust or any agent appointed by it to act on its behalf.

1.16 References to Rating Agency Condition.

          Wherever there is reference to satisfaction of a Rating Agency Condition in this Indenture or
any other Programme Agreement, subject to the terms of the specific Programme Agreement which shall
govern, such condition need not be satisfied if there is no Rating Agency then rating the
applicable Notes.

1.17 Language.

          The parties hereto express a request and require that this document be drawn up in English.
Les parties aux présentes conviennent et exigent que la présente entente et tous les documents qui
s’y rattachent soient rédigés en anglais. In the event of any contradiction, discrepancy or difference between the English language version and the French language
version, if any, of the text of the forms of the Notes, the English language version shall govern.

ARTICLE 2

THE NOTES

2.1 Notes.

          The aggregate principal amount of Notes which may be created and issued pursuant to this
Indenture is unlimited. The aggregate principal amount of Notes of a particular

- 17 -

 

Series or any Related Class which may be created and issued pursuant to this Indenture is limited to the
aggregate principal amount of Notes, if any, specified in the Related Supplement.

2.2 Requirements for Initial Creation of Notes.

            Notes may be created by the Trust, in accordance with the provisions hereof, provided that on
or prior to the initial creation and issuance of Notes hereunder, the Trust shall have delivered to
the Indenture Trustee:

	 	(a)	 	the Declaration of Trust;
	 
	 	(b)	 	the Financial Services Agreement and the Financial Services
Sub-Agency Agreement; and
	 
	 	(c)	 	a Certificate of the Trust, dated the date of issuance of such
Notes, stating that the issuance of the Notes will not result in the occurrence
of a Related Event of Default;

and the provisions of Section 2.3(2) shall have been satisfied.

2.3 Creation and Issuance in Series.

	 	(1)	 	Notes may, at the election of the Trust, be created and issued in one or more
Series and in one or more Classes of such Series with such further particular
designations added or incorporated in such title for the Notes of any particular Series
or Class as the Trust may determine. All Notes of the same Class of any Series at any
time outstanding shall be identical in all respects except for the denominations and
dates thereof and as may be otherwise specified in the Related Supplement. All Notes
of a particular Class of a Series created and issued under this Indenture shall be in
all respects entitled, equally and rateably with all other Notes of such Class of such
Series, to the benefits hereof and of the Related Supplement without preference,
priority or distinction on account of the actual time or times of certification and
delivery, all in accordance with the terms and provisions of this Indenture and the
Related Supplement.
	 
	 	(2)	 	In order to create Notes of any particular Series hereunder, the Trust and the
Indenture Trustee shall, on or before the Related Series Issuance Date, execute and
deliver a Related Supplement. The terms of such Related Supplement may amend,
supplement, modify, restate or replace the terms of this Indenture solely as applied to
such Notes. The obligation of the Indenture Trustee to execute and deliver the Related
Supplement is subject to the satisfaction of the following conditions (other than in
respect of the first Series for which (c) and (i) below are inapplicable):

	 	(a)	 	copies of any Related Securitization Agreement, Related Credit
Enhancement Agreement, agreements in respect of any Related Hedging

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	 	 	 	Transaction, Related Subordinated Loan Agreement, Related Note Purchase
Agreement and Related Underwriting Agreement then in effect shall have been
delivered to the Indenture Trustee;

	 	(b)	 	a Clearing Agency Letter of Representation, if any, to the
extent applicable to such Notes shall have been delivered to the Indenture
Trustee and the Clearing Agency by the Trust;
	 
	 	(c)	 	the Rating Agency Condition shall have been satisfied with
respect to the Notes then outstanding;
	 
	 	(d)	 	the Indenture Trustee shall have received a Certificate of the
Trust certifying that, as of the date of such execution and delivery, (i) the
representations and warranties set forth in Section 7.1 are true and correct in
all material respects; and (ii) the Trust has established or caused to be
established the Series Accounts prior to the Related Series Issuance Date;
	 
	 	(e)	 	in the event that an offering memorandum, prospectus or other
similar document is required or is to be provided to prospective purchasers of
any such Notes (as to which the Indenture Trustee shall have no duty or role in
determining), the Related Originator shall have executed and delivered to the
Issuer Trustee an indemnity relating to any misrepresentations contained
therein in form and substance satisfactory to the Trust;
	 
	 	(f)	 	any other items specified in the Related Supplement shall have
been executed by and delivered to the appropriate Persons;
	 
	 	(g)	 	the Indenture Trustee shall have received an opinion of counsel
to the Trust, in form and substance acceptable to the Indenture Trustee, acting
reasonably, stating that all requirements imposed by the terms of this
Indenture for the creation of such Notes have been fulfilled in accordance with
the terms of this Indenture;
	 
	 	(h)	 	the Related Supplement shall set out, at a minimum, the
Principal Terms; and
	 
	 	(i)	 	the issuance of such Notes does not constitute or result in the
occurrence of a Related Event of Default in respect of any Notes then
outstanding.

2.4 Execution, Certification and Delivery.

	 	(1)	 	The form of Notes of any particular Series and the certificate of the Indenture
Trustee to be endorsed thereon shall be substantially in the forms set out in the
Related Supplement, with such appropriate insertions, omissions, substitutions and
variations as may be approved by or permitted under the terms hereof or of the Related
Supplement or as the Trust and the Indenture Trustee may approve.

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	 	(2)	 	The Trust may at any time and from time to time deliver Notes executed by it to
the Indenture Trustee for certification.
	 
	 	(3)	 	Subject to Section 2.13, the Indenture Trustee shall certify Notes from time to
time and make such Notes available for pick-up without receiving any consideration
therefor upon receipt by and deposit with the Indenture Trustee of a Written Order for
the certification and delivery of the Notes specifying for each such Note the name and
address of the payee and the date, principal amount and interest rate, if applicable,
of the Note.
	 
	 	(4)	 	No Noteholder shall be entitled to any benefit under this Indenture and no Note
shall be issued or, if issued, shall be valid or obligatory for any purpose unless
there appears on the Note a certificate executed by the Indenture Trustee, by the
manual signature of its authorized officers, representatives or employees, and such
certificate upon any Note shall be conclusive evidence that the Note has been duly
certified and delivered hereunder. Any signature on behalf of the Trust or any
guarantor of the Notes may be manual or by facsimile. Notes bearing the manual or
facsimile signature of an individual who was at the time of execution a proper
authorized signatory of the Issuer Trustee in respect of the Trust, any guarantor or
the Indenture Trustee shall be valid and binding notwithstanding that any such
individual shall have ceased to hold such office prior to the certification and
delivery of such Notes or shall not have held such office at the date of issue of such
Notes. Any certification of Notes issued hereunder shall not be construed as a
representation or warranty as to the validity of this Indenture, the Related Supplement
or the Notes (except as to the due certification thereof) and the Indenture Trustee
shall in no respect be liable or answerable for the use made of the Notes or of the
proceeds thereof. The certification of the Indenture Trustee signed on any Notes shall
however be a representation and warranty by the Indenture Trustee that such Notes have
been duly certified and delivered by or on behalf of the Indenture Trustee pursuant to
the provisions of this Indenture and the Related Supplement.
	 
	 	(5)	 	The certification and delivery of any Note by the Indenture Trustee shall
constitute the issuance of such Note pursuant to the terms of this Indenture and the
Related Supplement as of the date of such delivery.

2.5 Temporary Notes.

	 	(1)	 	Pending the preparation of Definitive Notes, the Trust may execute, and upon
Written Order the Indenture Trustee shall certify and deliver, temporary Notes which
are printed, lithographed, typewritten, mimeographed or otherwise produced, in any
authorized denomination, substantially in the form of the Definitive Notes in lieu of
which they are issued and with such variations as the Trust and the Indenture Trustee
may determine, as evidenced by the Indenture Trustee’s certification of such Notes.

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	 	(2)	 	If temporary Notes are certified and delivered, the Trust shall cause
Definitive Notes to be prepared without unreasonable delay. After the preparation of
Definitive Notes, the temporary Notes shall be exchangeable for Definitive Notes upon
surrender of the temporary Notes at the office or agency of the Indenture Trustee to be
maintained as provided in Section 2.6, without charge to the holder. Upon surrender
for cancellation of any one or more temporary Notes, the Trust shall execute and the
Indenture Trustee shall certify and deliver in exchange therefor a like principal
amount of Definitive Notes of authorized denominations. Until so exchanged, the
temporary Notes shall in all respects be entitled to the same benefits under this
Indenture as Definitive Notes.
	 
	 	(3)	 	The provisions of this Section 2.5 do not apply with respect to Book-Entry
Notes.

2.6 Registration, Transfer and Exchange.

	 	(1)	 	The Indenture Trustee shall at all times while Notes are outstanding cause to
be kept by and at its corporate trust office in the City of Toronto, or such other
location as it may designate from time to time, Note Registers in which will be entered
the name of each Noteholder or Clearing Agency or its nominees, as the case may be, and
particulars of each of the Notes (including Notes issued under the Book-Entry System).
The Indenture Trustee shall also at all times while any Notes are outstanding cause to
be provided by and at its corporate trust office in the City of Toronto or such other
location as it may designate from time to time facilities for the exchange and transfer
of Notes. The Indenture Trustee may from time to time provide additional facilities at
its other offices or, with the approval of the Trust, at the offices of third parties
for such registration, exchange and transfer. No transfer of a Note in registered form
nor any transmission thereof by death will be valid unless made at one of such offices
by the Noteholder or by his or her executors, administrators or other legal
representatives, or his or her or their attorney duly appointed by an instrument in
writing, in form and as to execution satisfactory to the Indenture Trustee and upon
compliance with such reasonable requirements as the Indenture Trustee may prescribe and upon surrender of
the Note to the Indenture Trustee for cancellation, whereupon a new Note in an
aggregate principal amount, currency and interest rate, if any, and with the same
maturity date, will be issued to the transferee in exchange therefor. The Note
Registers will, at all reasonable times on Business Days, be open for inspection by
the Trust, the Financial Services Agent, the Financial Services Sub-Agent and any
Noteholder.
	 
	 	(2)	 	Notes in any authorized denomination may be exchanged for an equal aggregate
principal amount of Notes of the same Series and Class and having the same Principal
Terms in any other authorized denomination or denominations. In every case of exchange
of Notes of any denomination for other Notes and of any transfer and registration of
Notes, the Indenture Trustee may make a sufficient charge to reimburse it for any stamp
taxes or governmental charge for its services and a reasonable sum per Note issued upon
such exchange or transfer. Payment

- 21 -

 

	 	 	 	of such taxes and charges will be made by the party requesting the exchange or transfer as a condition precedent thereto.

	 	(3)	 	In every case of exchange or transfer of a Note, the surrendered Note shall be
cancelled.
	 
	 	(4)	 	Except to the extent provided in the Related Supplement, the Indenture Trustee
shall not be required to make transfers or exchanges of any Notes for the period
beginning on the close of business on the day which is 15 days prior to a Related
Distribution Date (or the next succeeding Business Day if such day is not a Business
Day) through to and including such Related Distribution Date.

2.7 Persons Entitled to Payment.

	 	(1)	 	The registered holder of any Note registered to a named payee or the transferee
thereof, if such Note has been transferred in accordance with the provisions of Section
2.6, shall upon presentation of such Note be entitled to the principal money and
interest, if any, when due and payable, evidenced by such Note, free from all equities
or rights of set-off or counterclaim between the Trust and the original or any
intermediate holder thereof, and all Persons may act accordingly.
	 
	 	(2)	 	Delivery of a Note to the Indenture Trustee by the holder of such Note shall,
upon payment in full of all amounts outstanding on such Note, be a good discharge to
the Trust of all obligations evidenced by such Note. The Indenture Trustee shall not
be bound to enquire into the title of any such holder, save as ordered by a court of
competent jurisdiction or as required by statute, nor shall it be bound to see to the
execution of any trust affecting the ownership of any Note or be affected by notice of
any equity that may be subsisting in respect thereof.
	 
	 	(3)	 	In the case of the death of one or more joint registered owners, the principal
money of and interest, if any, on a Note may be paid to the survivor or survivors of
such registered holders whose receipt thereof, accompanied by the delivery of such
Note, shall constitute a valid discharge to the Trust and the Indenture Trustee.
	 
	 	(4)	 	Any payment of principal or interest on any Note which is due on a day other
than a Business Day shall be payable on the next succeeding Business Day without
adjustment for interest thereon and such payment shall be deemed to have been made with
the same force and effect as if made on the due date.

2.8 Mutilated, Destroyed, Lost or Stolen Notes.

          If any of the Notes outstanding hereunder shall become mutilated or be lost, destroyed or
stolen, the applicable Noteholder shall deliver to the Indenture Trustee a sworn affidavit of loss.
Upon receipt of such affidavit, the Indenture Trustee shall certify and deliver a new Note of the
same Series and Class and having the same Principal Terms and an equivalent

- 22 -

 

principal amount as the one mutilated, lost, destroyed or stolen in exchange for and in place of and upon surrender and
cancellation of such mutilated Note or in lieu of and in substitution for such lost, destroyed or
stolen Note and the substituted Note shall be entitled to the security hereof and rank equally in
accordance with its terms with all other Notes of the same Series and Class issued hereunder. The
applicant for a new Note shall bear the cost of the issue thereof, and in case of loss, destruction
or theft, as a condition precedent to the issue thereof shall furnish such an affidavit of loss in
form satisfactory to the Trust and the Indenture Trustee, and an indemnity in amount and form
satisfactory to the Trust and the Indenture Trustee, in each case, as they may require, and shall
pay the reasonable charges of the Trust and the Indenture Trustee in connection therewith.

2.9 Cancellation and Destruction of Notes.

          All Notes surrendered or delivered to the Indenture Trustee for cancellation under this
Indenture shall be cancelled by it as soon as practicable. If required by the Trust, the Indenture
Trustee shall furnish to it a cancellation certificate setting forth the numbers and denominations
of the Notes so cancelled. All Notes which have been surrendered or delivered to and cancelled by
the Indenture Trustee will be destroyed by the Indenture Trustee, subject to its relevant record
retention policies, and the Indenture Trustee will, upon request by the Trust, furnish to the Trust
a destruction certificate on request setting forth the numbers and denominations of the Notes so
destroyed.

2.10 Protection of Notes.

	 	(1)	 	The Indenture Trustee shall hold in safekeeping the Notes which have not been
issued (but which have been delivered to the Indenture Trustee by or on behalf of the
Issuer Trustee) pending receipt of a Written Order. The Indenture Trustee shall
acknowledge receipt of the Notes so delivered by signing and returning to the Trust an acknowledgement of receipt of the Notes, such acknowledgement to be in
a form satisfactory to the Trust.
	 
	 	(2)	 	The Indenture Trustee’s responsibility for any Notes held in its custody
hereunder shall be limited to using the same diligence in physically safeguarding such
Notes as it does for its own securities. The Indenture Trustee shall account for the
unissued Notes held in its custody whenever so required by the Trust. If at any time
the Indenture Trustee shall discover that any of such Notes have been lost, damaged,
destroyed, stolen or misappropriated, it shall promptly advise the Trust thereof and
identify, to the extent practicable, such Notes.

2.11 Access to List of Noteholders’ Names and Addresses.

          The Indenture Trustee will furnish or cause to be furnished to the Trust or the Related Paying
Agent, within five Business Days after receipt by the Indenture Trustee of a request therefor, a
list in such form as the Trust or the Related Paying Agent may reasonably require, of the names and
addresses of the current Noteholders of any particular Series or Classes. If any one or more
Noteholders of any Class, as the case may be, holding not less than

- 23 -

 

20% of the aggregate unpaid principal amount of the Notes of such Class or of all outstanding Classes, as applicable (the
“Applicants”), applies to the Indenture Trustee, and such application states that the Applicants
desire to communicate with other Noteholders with respect to their rights under this Indenture or
under the Notes and such application is accompanied by a copy of the communication which such
Applicants propose to transmit, then the Indenture Trustee, after having received sufficient funds
and/or having been adequately indemnified by such Applicants for its costs and expenses, shall
afford or shall cause to afford to such Applicants access during normal business hours to the most
recent list of Noteholders of such Class or all outstanding Classes, as applicable, held by the
Indenture Trustee within five Business Days after the receipt of such application. Such list shall
be as of a date no more than 45 days prior to the date of receipt of such Applicants’ request.

          Every Noteholder, by receiving and holding a Note, agrees with the Indenture Trustee that none
of the Trust, the Indenture Trustee, the Financial Services Agent, the Financial Services
Sub-Agent, any Related Paying Agent, or any of their respective agents, shall be held accountable
by reason of the disclosure of any such information as to the names and addresses of the
Noteholders hereunder, regardless of the sources from which such information was derived.

2.12 Certifying Agent.

	 	(1)	 	The Indenture Trustee may appoint one or more certifying agents with respect to
the Notes which shall be authorized to act on behalf of the Indenture Trustee in
certifying the Notes in connection with the issuance, delivery, registration of
transfer, exchange or repayment of the Notes. Whenever reference is made in this
Indenture to the certification of Notes by the Indenture Trustee or the Indenture
Trustee’s certification, such reference shall be deemed to include certification on
behalf of the Indenture Trustee by a certifying agent and certification executed on behalf of the Indenture Trustee by a certifying agent. Each certifying agent must
be acceptable to the Trust.
	 
	 	(2)	 	Any institution succeeding to the corporate agency business of a certifying
agent shall continue to be a certifying agent without any further act on the part of
the Indenture Trustee or such certifying agent. A certifying agent may at any time
resign by giving 30 days’ notice to the Trust and the Indenture Trustee. The Indenture
Trustee may at any time terminate the agency of a certifying agent by giving notice of
termination to such certifying agent and the Trust. Upon receiving such a notice of
resignation or upon such a termination, or in case at any time a certifying agent shall
cease to be acceptable to the Trust or the Indenture Trustee, the Indenture Trustee
promptly may appoint a successor certifying agent. Any successor certifying agent upon
acceptance of its appointment hereunder shall become vested with all the rights, powers
and duties of its predecessor hereunder, with like effect as if originally named as a
certifying agent. No successor certifying agent shall be appointed unless acceptable
to the Trust and the Indenture Trustee. The Trust agrees to pay to each certifying
agent from time to time reasonable compensation for its services under this Section
2.12. The

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	 	 	 	provisions of Article 12 shall be applicable, mutatis mutandis, to any certifying agent.

	 	(3)	 	Pursuant to an appointment made under this Section 2.12, the Notes may have
endorsed thereon, in lieu of the Indenture Trustee’s certification, an alternate
certification in substantially the following form:
	 
	 	 	 	This is one of the Notes described in the Indenture.

	 	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	 

	 	 

as Certifying Agent for the
Indenture Trustee,
	 	 

	 	 	 	 	 
	 	 	 
	 	By  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

2.13 Book-Entry Notes.

	 	(1)	 	Except as provided in the Related Supplement for any Notes of a particular
Series and subject to Section 2.13(5), Notes of a particular Class of a Series, upon
original issuance, shall be issued under the Book-Entry System, in the form of a global
Note certificate representing the Book-Entry Notes, to be delivered to the Clearing
Agency by or on behalf of the Trust in respect of such Class of Notes of such Series.
The Notes shall initially be registered on the Note Registers in the name of the
Clearing Agency or its nominee and no Book-Entry Noteholder will receive Definitive Notes representing such Noteholder’s interest in the Notes,
except as provided in Section 2.13(5) or the Related Supplement. Unless and until
Definitive Notes have been issued to the applicable Noteholders pursuant to
Section 2.13(5) or as otherwise specified in the Related Supplement for any Notes:

	 	(a)	 	the provisions of this Section 2.13 shall be in full force and
effect;
	 
	 	(b)	 	the Issuer Trustee, the Indenture Trustee, the Trust, the
Financial Services Sub-Agent and the Financial Services Agent may deal with the
Clearing Agency for all purposes (including the making of payments and the
delivery of any notice, report or other communication) as the registered holder
of the Notes and as the authorized representative of the respective Book-Entry
Noteholders;
	 
	 	(c)	 	to the extent that the provisions of this Section 2.13 conflict
with any other provisions of this Indenture, the provisions of this Section
2.13 shall prevail;

- 25 -

 

	 	(d)	 	the rights of the respective Book-Entry Noteholders
shall be exercised only through the Clearing Agency (directly or by proxy in
favour of the respective Participants) and shall be limited to those
established herein and by law;
	 
	 	(e)	 	all transfers and exchanges of Book-Entry Notes must be made
through the Book-Entry System and any person transferring a Book-Entry Note in
such manner shall be deemed to have transferred to the transferee all of such
Person’s rights and obligations in respect thereof; all transferees of
Book-Entry Notes shall be deemed to have received and accepted such transfer
and be deemed to have agreed to be bound by the provisions of this Indenture;
and
	 
	 	(f)	 	for purposes of any provision of this Indenture requiring or
permitting actions with the consent of, or at the direction of, holders of
Notes evidencing a specified percentage of the aggregate unpaid principal
amount of Notes then outstanding, the Indenture Trustee is entitled to act and
rely upon the instructions of the Clearing Agency that it has received
instructions, directly or indirectly through their respective Participants, to
such effect from Book-Entry Noteholders owning or representing, respectively,
the requisite percentage of Notes.

	 	(2)	 	Subject to Section 2.13(1), each of the parties hereto acknowledges and agrees
that the Book-Entry Noteholders through their respective Participants are collectively
entitled, under the terms hereof, to all of the rights accorded to registered holders
of Notes and are bound by all of the obligations of such Noteholders.
	 
	 	(3)	 	When a Book-Entry Note has been deposited with the Clearing Agency, the rights
of the Book-Entry Noteholders represented by a Book-Entry Note, with respect to the
interest acquired, the time at which it is acquired, the method of transfer and the
ability and procedure to enforce payment shall be as determined by the rules of the
Clearing Agency.
	 
	 	(4)	 	Payments of interest on Book-Entry Notes and payments of amounts due upon
maturity of Book-Entry Notes will be made in accordance with the rules of the Clearing
Agency.
	 
	 	(5)	 	If Book-Entry Notes have been issued and (i) the Trust advises the Indenture
Trustee that the Clearing Agency is no longer willing or able to discharge properly its
responsibilities as the Clearing Agency with respect to such Notes and the Clearing
Agency is unable to locate a qualified successor; or (ii) after the occurrence and
during the continuance of a Related Event of Default, Book-Entry Noteholders
representing, in aggregate, not less than 50% of the aggregate unpaid principal amount
then outstanding of the Notes of the affected Series advise the Indenture Trustee
through the Clearing Agency and the Participants in writing,

- 26 -

 

	 	 	 	that the continuation of
the Book-Entry System with respect to such Notes is no
longer in the best interests of the Book-Entry Noteholders with respect to such
Notes, then the Indenture Trustee shall notify the relevant Book-Entry Noteholders
of such Notes, through the Clearing Agency, of the occurrence of any such event and
of the availability of Definitive Notes to Book-Entry Noteholders requesting the
same. Upon surrender by the Clearing Agency of the single global certificate or
certificates representing the Notes and accompanied by registration instructions
from the Clearing Agency for re-registration, the Indenture Trustee shall certify
and deliver such Definitive Notes. None of the Issuer Trustee, the Trust or the
Indenture Trustee shall be liable for any delay in delivery of such instructions and
may conclusively act and rely on, and shall be protected in acting and relying on,
such instructions. Upon the issuance of such Definitive Notes, the Issuer Trustee,
the Indenture Trustee, the Trust, the Financial Services Sub-Agent and the Financial
Services Agent shall recognize the registered holders of such Definitive Notes as
Noteholders hereunder.
	 
	 	(6)	 	If Definitive Notes have been issued and thereafter the Trust advises the
Indenture Trustee of the availability of the Book-Entry System in regard to such Notes,
the Indenture Trustee and the Trust may agree to allow for the re-registration of such
Definitive Notes under the Book-Entry System and the Indenture Trustee shall forthwith
deliver notice thereof to each registered holder of such Notes. Upon surrender by any
such Noteholder of its Definitive Note accompanied by instructions for re-registration
of the Note under the Book-Entry System, such Note shall thereafter be re-issued under
the Book-Entry System and be subject to Sections 2.13(1), (2), (3), (4), (5) and (7),
mutatis mutandis.
	 
	 	(7)	 	Whenever any notice or other communication is required to be given to the
Noteholders of any Series, unless and until Definitive Notes shall have been issued to
the applicable Noteholders, the Trust or the Indenture Trustee, as the case may be,
shall give all such notices and communications to the applicable Clearing Agency.
	 
	 	(8)	 	The Trust and the Indenture Trustee may provide in a Related Supplement for the
issuance by the Trust of Book-Entry Notes in electronic uncertificated form in
accordance with the rules of the applicable Clearing Agency, which Notes shall for all
purposes under this Indenture be Book-Entry Notes, except as otherwise provided in this
Section 2.13(8). In such case, the Related Supplement shall provide for the procedures
to be followed by the Trust and the Indenture Trustee in connection with the issuance,
authentication, registration, exchange, transfer of, and making payments on, such
Book-Entry Notes and the terms of the Related Supplement relating to the procedures to
be followed in connection with the issuance, authentication, registration, exchange,
transfer of, and making payments, on such Book-Entry Notes shall, to the extent
inconsistent with the terms of this Indenture, govern such Book-Entry Notes.

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2.14 Payment of Notes.

	 	(1)	 	The entire principal amount of each Note, except as otherwise specified in the
Related Supplement, shall be due and payable on the maturity thereof unless such Note
becomes due and payable at an earlier date by acceleration, call, redemption or
otherwise.
	 
	 	(2)	 	The Notes shall accrue interest as specified in the Related Supplement.
	 
	 	(3)	 	Subject to Sections 2.14(6) and 2.15, any amount payable on any Note shall be
paid to the Noteholder as of the Record Date, if any, for the Related Distribution Date
by cheque mailed at least one Business Day prior to the Related Distribution Date to
such Noteholder’s address as it appears in the Note Register at the close of business
on such Record Date. The forwarding of such cheque shall satisfy and discharge the
liability for the payment due on such Note to the extent of the sum represented
thereby, unless such cheque is not paid on presentation. In the event of non-receipt
of such cheque by such Noteholder or the loss or destruction thereof, the Trust and/or
the Indenture Trustee, upon being furnished with reasonable evidence of such
non-receipt, loss or destruction and an indemnity satisfactory to the Trust and the
Indenture Trustee in their discretion, shall issue or cause to be issued to such
Noteholder a replacement cheque for the amount of such cheque. Notwithstanding the
foregoing, if a Book-Entry Note is deposited with the Clearing Agency, then, unless and
until the rules of the Clearing Agency are amended to permit the discharge from
liability of the Trust upon the deposit or making available of funds, the deposit or
making available of such amount to the Related Payment Account or mailing of cheques
shall neither satisfy nor discharge the liability of the Trust for the Note represented
by such Book-Entry Note to which the deposit or making available of funds relates to
the extent of the amount deposited or made available (plus the amount of any taxes
deducted as aforesaid). Until the rules of the Clearing Agency are amended as
aforesaid, the liability of the Trust for a Book-Entry Note will be discharged upon
payment by the Trust in accordance with the provisions of Section 2.13(4).
Notwithstanding the foregoing or any provision in any Note to the contrary, the Trust
will pay, if so requested in writing by a Noteholder or if required by the rules,
by-laws, procedures or guidelines of the Canadian Payments Association or similar body,
all amounts payable to such Noteholder, by wire transfer of immediately available funds
on the Related Distribution Date to such account or accounts as specified by the
Noteholder.
	 
	 	(4)	 	The Trust shall deposit to the Related Payment Account not later than each
Related Distribution Date such sums as may be sufficient to pay all amounts then due to
the Noteholders of the Related Series on such Related Distribution Date. To the extent
that the amounts on deposit in the Related Payment Account on any Related Distribution
Date (including proceeds of Notes issued) are insufficient to pay all amounts then due
on the Related Series on such Related Distribution Date,

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	 	 	 	the amount so deposited shall
be paid to the Noteholders of such Related Series in accordance with the Related
Supplement.
	 	 	 
	 	(5)	 	The final payment on any Note shall, if such Note is a Definitive Note be made
only upon presentation and surrender of such Note on or after the Related Distribution
Date at one or more chartered banks in the City of Toronto identified by the Trust or
any branch of the Indenture Trustee designated for such purpose from time to time by
the Trust and the Indenture Trustee, or if such Note has been called for redemption or
repayment, at any other place as may be specified in the notice of redemption or
repayment. If such Note is a Book-Entry Note on deposit with a Clearing Agency, such
final payment shall be deposited with such Clearing Agency and paid to the beneficial
owners thereof in accordance with the Clearing Agency’s practices and procedures and
the Clearing Agency shall deliver such Note to the Indenture Trustee for cancellation.
	 
	 	(6)	 	Notwithstanding any of the foregoing provisions, if a Related Event of Default
has occurred, then payments shall be made in accordance with the Related Supplement.

2.15 Payment Agreement for Notes.

          Notwithstanding anything contained in this Indenture, the Trust may enter into an agreement
with the holder of any Note or with the Person for whom such holder is acting as nominee providing
for the payment to such holder of the principal of and premium, if any, and interest on any such
Note at a place and in a manner other than the place or manner specified herein and in such Note.
Any payment of principal of and premium, if any, and interest on any Note at such other place or in
such other manner pursuant to such agreement shall, notwithstanding any other provision of this
Indenture, be valid and binding on the Trust, the Indenture Trustee and such Noteholder.

2.16 Interest Act.

          For the purpose of disclosure pursuant to the Interest Act (Canada), the yearly rate of
interest to which any rate of interest payable under this Indenture that is calculated on any basis
other than a full calendar year is equivalent may be determined by multiplying such rate by a
fraction the numerator of which is the actual number of days in the calendar year in which such
yearly rate of interest is to be ascertained and the denominator of which is the number of days
comprising such other basis. The parties further agree that for the purposes of the Interest Act
(Canada), (i) the principle of deemed reinvestment of interest shall not apply to any interest
calculation under this Indenture or the Notes, and (ii) the rates of interest stipulated in this
Indenture or the Notes are intended to be nominal rates and not effective rates or yields.

2.17 Repayment of Unclaimed Money.

          Subject to applicable law, any money deposited to the Related Note Payment Accounts pursuant
to Sections 2.14 or 2.15 and not claimed by and paid to Noteholders as

- 29 -

 

provided in such sections
within six years after the date on which payment first becomes due and payable, shall be repaid to
the Trust, with interest, if any, on demand, and thereupon the Trust shall be released from all
further liability with respect to such money, and thereafter the holders
of the Notes in respect of which such moneys were so repaid to the Trust shall have no rights
in respect thereof and the Trust shall be discharged from its obligations in respect thereof.

2.18 Maintenance of Records.

          The Indenture Trustee shall open and maintain appropriate records with respect to each
outstanding Note. The Indenture Trustee shall record by appropriate entries therein each payment
made on account of interest and principal owing with respect to each such Note. For the purposes
thereof, the Trust shall to the extent applicable provide to the Indenture Trustee satisfactory
evidence of each payment as soon as practicable after making such payment. Such records of payment
shall be conclusive evidence of the unpaid principal balance and interest owing in the absence of
demonstrable error. The failure to record, or any error in recording, any such payment shall not,
however, limit or otherwise affect the obligations of the Trust as to the principal amount or
accrued interest owing with respect to any such Note.

2.19 Acknowledgements.

	 	(1)	 	The Indenture Trustee acknowledges that the Trust has entered into the
Financial Services Agreement which provides, among other things, for the provision of
certain services and the performance by the Financial Services Agent of certain
obligations of the Trust under this Indenture connected with the issuance of the Notes.
Accordingly, any obligation of the Trust hereunder performed by the Financial Services
Agent on behalf of the Trust will be deemed to have been performed by the Trust and any
payments referred to hereunder received or received and applied against the Notes by
the Financial Services Agent on behalf of the Trust will be deemed to have been
received or received and applied by the Trust. The Indenture Trustee may act and rely
on any instrument or report referred to hereunder prepared by the Financial Services
Agent on behalf of the Trust as if the instrument or report had been prepared by the
Trust.
	 
	 	(2)	 	The Indenture Trustee acknowledges that the Financial Services Agent and the
Trust have entered into the Financial Services Sub-Agency Agreement which provides,
among other things, for the provision of certain services and the performance by the
Financial Services Sub-Agent of certain obligations of the Trust under this Indenture
connected with the issuance of the Notes. Accordingly, any obligation of the Trust
hereunder performed by the Financial Services Sub-Agent on behalf of the Financial
Services Agent, as agent of the Trust, will be deemed to have been performed by the
Trust and any payments referred to hereunder received or received and applied against
the Notes by the Financial Services Sub-Agent on behalf of the Financial Services
Agent, as agent of the Trust, will be deemed to have been received or received and
applied by the Trust. The Indenture Trustee may act and rely on any instrument or
report referred to hereunder prepared by the Financial Services Sub-Agent on behalf of
the

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	 	 	 	Financial Services Agent, as agent of the Trust, as if the instrument or report had
been prepared by the Trust.
	 
	 	(3)	 	The Indenture Trustee also acknowledges that the Trust may designate one or
more Servicers to provide, among other things, certain services and perform certain
obligations of the Trust pursuant to the terms of a Securitization Agreement.

ARTICLE 3

SUBORDINATION

3.1 Subordination.

          Payments to be made on a particular Class of Notes of a Series may be made subordinate and
rank junior to payments to be made on one or more other Classes of Notes of such Series.

3.2 Rights of Noteholders Preserved.

          In respect of a particular Class of Notes of a Series, nothing in this Article 3 is intended
to or shall impair the obligation of the Trust, subject to the rights of the Noteholders of a
different Class of Notes of such Series to receive payments in priority, to pay such Notes as and
when the same shall become due and payable in accordance herewith, or affect the relative rights of
the holders of such Notes and creditors of the Trust other than the holders of the Class of Notes
of such Series entitled to priority in payment, nor shall anything in this Article 3 prevent the
Indenture Trustee or the holder of any Notes from exercising all remedies otherwise permitted by
this Indenture, subject to the rights (if any) under this Indenture of the holders of the Class of
Notes of such Series entitled to priority in payment and the Indenture Trustee on their behalf in
respect of any payment or distribution of cash, property or securities of the Trust received upon
the exercise of any such remedy.

3.3 Renewal or Extension of Senior Notes.

	 	(1)	 	Except as provided in the Related Supplement, the holders of Senior Notes of
any Series may at any time in their discretion renew or extend the time of payment of
the Senior Notes or exercise any other of their rights in respect thereof, including,
without limitation, the waiver of a Related Event of Default thereunder, all without
notice to or assent from the holders of the Subordinated Notes or the Indenture
Trustee.
	 
	 	(2)	 	No compromise, alteration, amendment, modification, extension, renewal or other
change of, or waiver, consent or other action in respect of, any liability or
obligation under or in respect of any Senior Notes or of any of the terms, covenants or
conditions of an indenture or other document under which any Senior Notes shall have
been issued, shall in any way alter or affect any of the provisions of this Article 3.

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ARTICLE 4

SECURITY

4.1 Security for the Obligations Secured.

	 	(1)	 	Subject to Section 4.1(2), as security for the due payment and performance of
all Obligations Secured including, without limitation, all principal of and interest,
if any, on the Notes from time to time issued and certified under this Indenture, and
the performance by the Trust of all of the obligations of the Trust contained herein or
in any Related Supplement in relation thereto, the Trust hereby:

	 	(a)	 	mortgages, charges, pledges, grants, transfers, assigns,
hypothecates and sets over unto the Indenture Trustee for the benefit of the
Specified Creditors as and by way of a fixed and specific mortgage, assignment,
pledge, hypothec and charge and grants to the Indenture Trustee for the benefit
of the Specified Creditors a security interest in (i) all right, title and
interest of the Trust in and to all Asset Interests now owned or hereafter
acquired by the Trust and all Programme Agreements to which the Trust is now or
hereafter may become party; (ii) all debts, accounts, claims, moneys and choses
in action which now are or which may at any time hereafter be due or owing to
or owned by the Trust, and also all securities, bills, notes, evidences of
deposits of money, and other documents now held or owned or which may be
hereafter taken, held or owned by the Trust, or anyone on behalf of the Trust,
and all renewals thereof, accretions thereto, substitutions therefor and all
interest, income and revenue arising therefrom or by virtue thereof, including,
without limitation, all debts, collections, demands and choses in action now or
hereafter owing to the Trust pursuant to any Programme Agreement, and all
amounts now or hereafter in all Series Accounts and Related Collateral Accounts
and interest on amounts held in such accounts, all Permitted Investments
thereof and the proceeds of such Permitted Investments; and (iii) all proceeds
in respect of the property described in (i) and (ii) now owned or hereafter
acquired by the Trust; and
	 
	 	(b)	 	mortgages, charges, pledges, grants, transfers, assigns,
hypothecates and sets over unto the Indenture Trustee for the benefit of the
Specified Creditors, a floating charge over and grants to the Indenture Trustee
for the benefit of the Specified Creditors a security interest in all of the
property, assets and undertaking now owned or hereafter acquired by the Trust
(other than such property, assets and undertaking which are at all times
validly subjected to the fixed and specific mortgage, assignment, pledge,
hypothec and charge hereby created).

	 	(2)	 	Notwithstanding Section 4.1(1), (i) the Related Collateral shall be held as
security for the due payment of the Related Obligations Secured alone; (ii) the Related
Obligations Secured shall be secured solely by the Related Collateral and recourse 

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	 	 	 	in respect of such Related Obligations Secured shall be limited to the Related
Collateral and to amounts derived therefrom expressly allocated to fund payments to
the applicable Related Specified Creditors under Related Securitization Agreements,
this Indenture and the Related Supplement, including Section 9.5 and any similar
provision in the Related Supplement dealing with allocation of available funds; and
(iii) the Related Specified Creditors shall not have the right to enforce a claim
against the Trust or initiate or participate in the insolvency of the Trust as
unsecured creditors other than, and only to the extent that, such claim or
initiation or participation is necessary to permit recourse to the Related
Collateral.
	 
	 	(3)	 	For greater certainty, and without limiting Section 4.1(2), the Credit
Enhancement, Reserve(s) and Series Accounts in respect of a particular Series shall not
constitute part of the Related Collateral for any other Series and the Related
Specified Creditors in respect of such other Series shall not have any recourse to or
claim against any such Credit Enhancement, Reserve(s) and Series Accounts.

4.2 Habendum.

          To have and to hold the Collateral and all rights hereby conferred unto the Indenture Trustee,
its successors and assigns forever but in trust nevertheless for the benefit of the Specified
Creditors and for the uses and purposes and subject to the terms and conditions set forth in this
Indenture.

4.3 Reservation of Last Day of Leasehold Terms.

          It is hereby declared that the last day of any term of years reserved by any lease, verbal or
written, or any agreement therefor, now held or hereafter acquired by the Trust or forming part of
the Asset Interests, and whether falling within the general or particular description of the
Collateral hereunder, is hereby and shall be excepted out of the charge of security created
hereunder or by any other instrument created, and does not and shall not form any part of the
Collateral, but the Trust shall stand possessed of the reversion remaining in the Trust of any
leasehold premises, for the time being demised, as aforesaid, upon trust to assign and dispose
thereof as the purchaser of such leasehold premises shall direct.

4.4 Security Valid Irrespective of Advance of Moneys.

          The Trust acknowledges that value has been given and that the security granted pursuant to
Section 4.1 shall attach and be effective on the date of execution of this Indenture and when the
Trust acquires rights in the Collateral, whether or not the moneys and the Notes or any other
evidence of Obligations Secured or any part thereof hereby secured or intended to be hereby secured
shall be advanced or issued before or after or upon the date of the execution of this Indenture.

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4.5 Satisfaction and Discharge.

	 	(1)	 	The Indenture Trustee will from time to time, upon the receipt of a Written
Order and at the expense of the Trust, cancel and discharge any of the security
constituted by, or pursuant to, this Indenture and execute and deliver to the Trust
such assignments or other instruments as are required to discharge any of the
security constituted hereby and reconvey to the Trust any property subject to any of
the security constituted hereby, free and clear of such security, and to effect the
cancellation or partial discharge of any registration or recording of the security
interest or other encumbrance created hereby, and to release the Trust from this
Indenture and the obligations hereof and the covenants herein contained (other than
the provisions relating to the indemnification of the Indenture Trustee) at such
time as the Trust has paid and satisfied all Obligations Secured to which such
security relates at the times and in the manner therein and herein provided.
	 
	 	(2)	 	If, (i) pursuant to the terms of a Credit Enhancement Agreement or
Securitization Agreement, any Asset Interest is to be conveyed to the Related Credit
Enhancer, the Related Originator or to any other Person; or (ii) with respect to the
Notes of any particular Series, any payment is made from the Related Collateral
Accounts or the Series Accounts in accordance with the terms of this Indenture, the
Related Supplement or the Related Securitization Agreement, such conveyance or payment
shall be effective immediately, free and clear of the security constituted hereby and
any other provision hereof, without the necessity of any Written Order, whether such
conveyance or payment shall occur before or after any Related Event of Default, and the
Indenture Trustee shall be deemed to have taken all action contemplated by
Section 4.5(1) to effect such conveyance.

4.6 Other Security Documents.

          The Trust acknowledges that, in order to give full force and effect to Section 4.1, it may be
necessary or advisable from time to time to execute other forms of security documents for
particular jurisdictions, and the Trust agrees to forthwith execute any such other security
document to similar effect as Section 4.1 as the Indenture Trustee, relying on the advice of
Counsel, may reasonably request from time to time. All rights acquired by the Indenture Trustee
under any such other security documents shall be held by the Indenture Trustee for the benefit of
the Specified Creditors and shall be subject to the terms of this Indenture and for the same
purposes as it holds the security granted to it pursuant to Section 4.1.

ARTICLE 5

POSSESSION AND USE OF COLLATERAL

5.1 General.

	 	(1)	 	Subject to the express terms of this Indenture and the Related Supplement,
until, in respect of the Notes of any Series, the Related Obligations Secured have
become due and payable pursuant to Section 8.2, the Trust will be permitted to

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	 	 	 	possess
and use the Related Collateral in connection with the activities of the Trust,
including, without limitation, the right to exercise all of its rights and perform all
of its obligations under each Related Programme Agreement and enter into Related
Hedging Transactions without consultation with or the consent of the Indenture Trustee.
	 
	 	(2)	 	Each Note is issued on the express understanding and acknowledgement that the
rights under such Note are subject in all respects to the priority and sharing
arrangements set forth herein and in the Related Supplements, and to the provisions set
forth herein and therein regarding allocation of payments. The benefit of this
Indenture shall be allocated and shared among the Trust and the Noteholders in
accordance with the terms hereof and any Related Supplement.
	 
	 	(3)	 	The Indenture Trustee shall be entitled to amounts received by the Indenture
Trustee pursuant to this Indenture or any enforcement thereof, for its own account, to
the extent of any amounts owing to the Indenture Trustee pursuant hereto or in
connection herewith, for which the Indenture Trustee is expressly provided the benefit
of the security hereby constituted, and any amounts so paid to the Indenture Trustee
shall reduce the amounts otherwise available under this Indenture to each other
Noteholder on a pro rata basis, based on their relative entitlement to such amounts.

5.2 Collection Accounts.

	 	(1)	 	With respect to the Notes of any particular Series, the Trust shall deposit all
cash proceeds received by it in connection with the Related Collateral, including,
without limitation, any Related Collections, all Permitted Investments thereof and all
proceeds of such Permitted Investments, to the Related Collection Accounts. Until the
Related Obligations Secured have become due and payable pursuant to Section 8.2, the
Trust shall have access to such Related Collection Accounts and may use the funds in
such accounts for any purpose not in violation of this Indenture or the Related
Programme Agreements, including, without limitation, payment of the Related Trust
Expenses.
	 
	 	(2)	 	All amounts payable by the Trust hereunder shall, prior to the occurrence of a
Related Event of Default, be paid: (i) out of the Related Collection Accounts of the
appropriate Series to the extent attributable to the Notes of a particular Series, or
the Related Collateral, the Related Obligations Secured or the Related Programme
Agreements; and (ii) out of all Related Collection Accounts, to the extent not
attributable to the Notes of a particular Series, in an amount per Series equal to the
Related Proportionate Share thereof.
	 
	 	(3)	 	All such amounts deposited in the Related Collection Accounts shall be
allocated only to the Related Specified Creditors of the appropriate Series, except as
otherwise expressly provided herein or in the Related Supplement.

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5.3 Location of Accounts.

          On or before any Related Series Issuance Date, the Trust will establish or cause to be
established and thereafter maintain or cause to be maintained the Series Accounts and any other
account required by the Related Supplement. Each of the Series Accounts and any other account (if
required to be established) shall be maintained at an Eligible Institution.

ARTICLE 6

COVENANTS OF THE TRUST

6.1 Positive Covenants.

          The Trust hereby covenants and agrees with the Indenture Trustee that, so long as any
Obligations Secured remain outstanding and except as otherwise permitted by the prior written
consent of the Indenture Trustee and satisfaction of the Rating Agency Condition in respect of the
Related Rating Agencies, or as contemplated herein or in the Programme Agreements, it shall:

	 	(a)	 	Pay Obligations. Duly and punctually pay or cause to be paid
to every Noteholder the principal of and interest and premium, if any, on the
Notes held by such Noteholder on the date, at the places and in the manner
provided for in this Indenture, each Related Supplement and the Notes and duly
and punctually pay all other Obligations Secured to the Specified Creditors in
the manner provided for in the Programme Agreements;
	 
	 	(b)	 	Maintain Collateral. Subject to the express terms of this
Indenture, diligently maintain and protect the Collateral;
	 
	 	(c)	 	Maintain Existence. Do or cause to be done all things
necessary to keep in full force and effect the existence of the Trust as a
trust validly existing under the laws of the Province of Ontario and all
properties, rights, franchises, licences and qualifications required to carry
on its business in each jurisdiction in which it owns property or carries on
business from time to time;
	 
	 	(d)	 	Compliance with Laws, etc. Comply with all applicable
governmental restrictions and regulations and obtain and maintain in good
standing all licences, permits, qualifications and approvals from any and all
governments, governmental commissions, boards or agencies of jurisdictions in
which it carries on business required in respect of the operations of the
Trust;
	 
	 	(e)	 	Pay Taxes. Pay or cause to be paid all taxes, government fees
and dues levied, assessed or imposed upon the Trust and its property or any
part thereof, as and when the same become due and payable; provided that the
Trust may protest the payment of any such taxes, fees or dues if it is acting

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	 	 	 	in good faith and if (i) it either provides the Indenture Trustee with cash in
an amount sufficient to satisfy the same or otherwise satisfies the Indenture
Trustee that its interests are not prejudiced thereby; and (ii) if DBRS Limited
is then a Rating Agency, it provides notice to DBRS Limited thereof;
	 
	 	(f)	 	Further Assurances. From time to time execute and deliver all
financing statements, instruments of further assurance and other instruments
and take such other or further action as the Indenture Trustee, relying on the
advice of Counsel, may consider necessary or advisable in connection with
the security granted hereby;
	 
	 	(g)	 	Pay Indenture Trustee. Pay the Indenture Trustee in accordance
with the terms of this Indenture reasonable remuneration as agreed from time to
time for its services as Indenture Trustee hereunder and pay to the Indenture
Trustee on demand all reasonable expenses, disbursements and advances properly
incurred by the Indenture Trustee in connection with the trusts hereof
(including, without limitation, legal fees and expenses and the reasonable
compensation and disbursements of all other advisors, agents and experts not
regularly in its employ);
	 
	 	(h)	 	Appoint Successors. Upon the written request of the Indenture
Trustee, use its best efforts, following any (i) termination or resignation of
a Servicer, Back-Up Servicer, Custodian, the Financial Services Sub-Agent, as
standby financial services agent, or the Financial Services Agent; or
(ii) termination, non-renewal or expiration of a Credit Enhancement Agreement
(other than a termination, non-renewal or expiration which occurs because the
Related Asset Interests have been collected or assigned to the Related Credit
Enhancer and neither party thereto has any further obligation thereunder), to
appoint and enter into an agreement with a successor to such Servicer, Back-Up
Servicer, Custodian, the Financial Services Sub-Agent, as standby financial
services agent, or Financial Services Agent, or replace or renew such Credit
Enhancement Agreement, in form and substance the same as the applicable
provisions in the Programme Agreement so replaced or renewed (subject, in each
case, to such amendments as may be consented to by the Indenture Trustee) and,
in each such case, the Trust will notify the Indenture Trustee and each of the
Related Rating Agencies of each such occurrence and new agreement and will
deliver a copy of any such agreement to the Indenture Trustee for its approval
and satisfy the Rating Agency Condition before executing the same, and will
execute and deliver all supplemental indentures and amendments hereto and all
instruments of further assurance and other instruments and will take such other
and further action as the Indenture Trustee, relying on the advice of Counsel,
may consider necessary or

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	 	 	 	advisable to assign and render subject to this
Indenture any such agreement;
	 
	 	(i)	 	Deliver Information. Deliver or cause to be delivered to the
Indenture Trustee and the Related Rating Agencies, (i) such financial
statements, reports and other information relating to the conduct of the
business and affairs of the Trust as the Indenture Trustee may reasonably
require including, without limitation, information pertaining to any actual or
anticipated Related Event of Default or other event which could reasonably be
anticipated to have a material adverse effect on the affairs of the Trust and
copies of all Programme Agreements (including any
amendments thereto) in effect from time to time; and (ii) in respect of the
Notes of any Series, the information specified in the Related Supplement;
	 
	 	(j)	 	Security Interest. The Trust shall defend the Security
Interest of the Indenture Trustee in and to the Collateral, whether now
existing or hereafter acquired, against all claims of third parties claiming
through or under the Trust or an Originator, other than under Permitted Liens
described in clause (i) or (iii) of the definition thereof. The Trust will
notify the Indenture Trustee promptly upon becoming aware of a security
interest claimed against the Collateral other than the Security Interest
provided for herein or any other Permitted Liens;
	 
	 	(k)	 	Change of Name. Immediately notify the Indenture Trustee and
each of the Rating Agencies of (i) any change in name of the Issuer Trustee or
the Trust and (ii) the name of any successor or replacement Issuer Trustee;
	 
	 	(l)	 	Change of Address. Immediately notify the Indenture Trustee
and each of the Rating Agencies of any change in address of the Issuer Trustee
or the Trust;
	 
	 	(m)	 	Register Financing Statements. Take all necessary action to
ensure the due registration of all requisite financing statements, financing
change statements or other instruments to properly maintain, preserve and
perfect the security provided hereunder or pursuant to any Hypothec in favour
of the Indenture Trustee;
	 
	 	(n)	 	Performance of Contractual Obligations. Perform in all
material respects all of its obligations under all contracts, indentures and
instruments to which it is a party (including the Programme Agreements);
	 
	 	(o)	 	Exercise of Rights under Programme Agreements. Exercise its
rights provided in the Programme Agreements in good faith in accordance with
the provisions thereof with a view to maximizing amounts available to pay
Obligations Secured of the relevant Series;

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	 	(p)	 	Delivery of Notice of Related Significant Event or Related
Event of Default. Promptly (and in any event, within 1 Business Day) notify
each of the Related Rating Agencies and the Indenture Trustee of the
occurrence, in respect of Notes of a particular Series, of a Related
Significant Event, a Related Event of Default or a Related Default;
	 
	 	(q)	 	Backup or Standby Servicer. If at any time the Back-Up
Servicer is not then acting as backup or standby Servicer for Related Asset
Interests, then upon the passing of an Extraordinary Resolution of the holders
of the Class of Notes set out in the Related Supplement which are authorized in
such Related Supplement to negotiate and settle the terms of an agreement with
a backup or standby Servicer for the Related Asset Interests, use its best
efforts (provided such efforts shall not require the expenditure of the
Trust’s own funds beyond any amount provided for in the Related
Securitization Agreement) to appoint and enter into an agreement with a
backup or standby Servicer for the Related Asset Interests, in form and
substance satisfactory to the holders of the Class of Notes specified in the
Related Supplement which approval shall be evidenced by an Extraordinary
Resolution; and
	 
	 	(r)	 	Separateness Covenants. Take all reasonable steps to maintain
the Trust’s identity as a distinct entity with assets and liabilities distinct
from those of any Originator and any of their respective Affiliates
(collectively, the “Originator Entities”). Without limiting the generality of
the foregoing and in addition to the other covenants set forth herein, the
Trust shall:

	 	(i)	 	conduct its own business in its own name and
not commingle its assets with those of any other Person, except for any
commingling of Collections expressly permitted by a Related
Securitization Agreement;
	 
	 	(ii)	 	in accordance with the Related Securitization
Agreement, compensate all consultants and agents directly from the
Trust’s bank accounts, for services provided to the Trust by such
consultants and agents and, to the extent any consultant or agent of
the Trust is also an employee, consultant or agent of any Originator
Entity, allocate the compensation of such employee, consultant or agent
between the Trust and such Originator Entity on a basis that reflects
the services rendered to the Trust and such Originator Entity;
	 
	 	(iii)	 	not identify the offices of any Originator
Entity as its offices (by signage or otherwise);

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	 	(iv)	 	not identify the telephone number of any
Originator Entity as its telephone number and it will not utilize the
stationery, invoices or cheques of any Originator Entity;
	 
	 	(v)	 	conduct all transactions with each Originator
Entity strictly on an arm’s length basis, allocate all overhead
expenses for items shared between the Trust and such Originator Entity
on the basis of actual use to the extent practicable and, to the extent
such allocation is not practicable, on a basis reasonably related to
actual use;
	 
	 	(vi)	 	conduct its affairs strictly in accordance with
its trust documents, and observe all necessary, appropriate and trust
formalities;
	 
	 	(vii)	 	maintain the Trust’s books and records
separate from those of any Originator Entity and otherwise readily
identifiable as its own assets rather than assets of any such
Originator Entity;

	 
	 	(viii)	 	prepare its financial statements separately from those of any
Originator Entity and ensure that any consolidated financial statements
of any Originator Entity that include the Trust and that are filed
pursuant to applicable securities laws have notes clearly stating that
the Trust is a separate entity;
	 
	 	(ix)	 	only maintain bank accounts or other depository
accounts to which the Trust alone (or its agent) is the account party,
and from which only the Trust or its agent has the power to make
withdrawals;
	 
	 	(x)	 	pay all of the Trust’s operating expenses from
the Trust’s own assets in accordance with the Related Securitization
Agreement; and
	 
	 	(xi)	 	continuously maintain the resolutions,
agreements and other instruments of the Trust underlying the
transactions described in the Programme Agreements as official records
of the Trust separately identified and held apart from the records of
any Originator Entity.

6.2 Negative Covenants.

          The Trust hereby covenants and agrees with the Indenture Trustee that, so long as any
Obligations Secured remain outstanding and, unless it first satisfies the Rating Agency Condition
in respect of each outstanding Series of Notes (in the case of (b) and (e) below) or in respect of
any affected Series of Notes (in the case of (a), (c), (d) and (f) below), it shall not engage in
any of the following activities, except with the consent of the Indenture Trustee or to the extent
otherwise expressly permitted herein or in the Programme Agreements:

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	 	(a)	 	No Sale. Sell, transfer, exchange or otherwise dispose of any
of the Collateral;
	 
	 	(b)	 	Limit Activities. Engage in any activity other than the
activities contemplated by the Programme Agreements;
	 
	 	(c)	 	Impair Security. Permit the validity or effectiveness hereof
or of the Collateral to be impaired or permit the security created by this
Indenture to be amended, hypothecated, subordinated, terminated or discharged,
or permit any Person to be released from any covenants or obligations under
this Indenture;
	 
	 	(d)	 	Create Encumbrances. Create, incur, assume or suffer to exist
any Security Interest in respect of any of the Trust’s undertaking, property or
assets, except Permitted Liens;
	 
	 	(e)	 	Create Indebtedness. Create, incur, assume or guarantee any
indebtedness or obligation or enter into any Hedging Transaction, which does
not comply with the Limited Recourse Condition; or
	 
	 	(f)	 	Amend Programme Agreements. Without limiting Sections 11.12,
11.13, 11.14 or 13.3, amend, supplement, modify, terminate, restate or replace
or waive or consent to a postponement of compliance with the terms and
conditions on the part of the other party to any of the Programme Agreements if
any such, amendment, supplement, modification, termination, restatement or
replacement or waiver or consent could reasonably be expected to, individually
or in the aggregate, materially adversely affect the rights or interests of any
Specified Creditor which has not consented thereto; provided that this
Section 6.2(f), Section 11.12(1)(e) and Section 13.3 shall not apply to nor
prevent any such amendment, supplement, modification, termination, restatement,
replacement, waiver or consent to or of any such Programme Agreement where the
consent or agreement of the Trust is not required pursuant to the terms of such
Programme Agreement and is not otherwise sought by any party to such Programme
Agreement.

6.3 Indenture Trustee May Perform Covenants.

          If the Trust fails to perform any of its covenants herein contained, the Indenture Trustee
may, subject to the receipt of indemnification and funding reasonably acceptable to the Indenture
Trustee as provided in Sections 12.3(2) and 12.3(3), itself perform the covenant if the covenant is
capable of being performed by the Indenture Trustee (but will be under no obligation to do so) and,
if the covenant requires the payment or expenditure of money, the Indenture Trustee may make the
payment or expenditure with its own funds or with money borrowed by or advanced to it for such
purpose, but will be under no obligation so to do; and all sums so expended or advanced will bear
interest at a rate per annum equal to the then current rate of

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interest charged by the Indenture
Trustee from time to time so long as the same is commercially reasonable, from the date of
expenditure until repayment and will (together with such interest) be paid by the Trust upon demand
and will until paid form part of the Obligations Secured and constitute a charge or lien on the
Collateral to which such covenant related in priority to the security hereby constituted and will
be payable out of any funds coming into possession of the Indenture Trustee hereunder. No
performance or payment will be deemed to release the Trust from the consequences of the occurrence
of any Related Event of Default hereunder.

6.4 Right of Audit.

          The Indenture Trustee may, in its discretion, and shall upon the request of the holders of 25%
of the Notes then outstanding, at any reasonable time upon five Business Days’ written notice to
the Trust but, prior to a Related Event of Default, not more than once in any three month period,
cause an audit to be made of the Trust’s books and records for the purpose of confirming the
accuracy of all information and reports, if any, delivered to the Indenture Trustee, the Financial
Services Agent, the Financial Services Sub-Agent or the Custodians, as the case may be.

6.5 Notices Regarding Financial Services Sub-Agent.

          If at any time the Indenture Trustee learns of any circumstance in respect of which a
reasonably prudent person would consider terminating the Financial Services Sub-Agency Agreement
pursuant to Section 6.1 thereof, it shall promptly notify all Noteholders thereof in writing, which
notice shall also contain a request for direction from such Noteholders as to what, if any, action
to take in respect of such circumstances.

ARTICLE 7

REPRESENTATIONS AND WARRANTIES

7.1 Representations and Warranties of the Trust.

          The Trust hereby represents and warrants to the Indenture Trustee and shall be deemed to
represent and warrant to the Indenture Trustee on the issuance of Notes of any particular Series
hereunder that:

	 	(a)	 	Valid Existence and Due Qualification. The Trust is a trust
duly constituted and validly existing under the laws of the Province of
Ontario, is duly qualified to carry on its business in each jurisdiction in
which it carries on business, has the power and authority to enter into and
perform its obligations under this Indenture and the other Programme Agreements
executed by it and all instruments and agreements delivered pursuant hereto and
thereto and to own its property and carry on its business as currently
conducted including, without limitation, the power and authority and legal
right to acquire Asset Interests, and has obtained all material licences,
permits and approvals from all governments, governmental

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	 	 	 	commissions, boards
and other agencies required in respect of its operations;
	 
	 	(b)	 	Due Authorization and Enforceability. The execution, delivery
and performance of this Indenture, the other Programme Agreements executed by
it and every instrument or agreement delivered pursuant hereto and thereto has
been duly authorized by all requisite action under the Declaration of Trust and
by all necessary corporate action on the part of the Issuer Trustee and this
Indenture and such other Programme Agreements, instruments and agreements have
been duly executed and delivered by the Trust and constitute valid and binding
obligations of the Trust enforceable against the Trust in accordance with their
respective terms subject to (i) applicable bankruptcy, insolvency, moratorium
and similar laws at the time in effect affecting the rights of creditors
generally, and (ii) equitable principles which may limit the availability of
certain remedies, including the remedy of specific performance;
	 
	 	(c)	 	No Litigation. There are no actions, suits or proceedings
pending or, to the knowledge of the Trust, threatened against the Trust at law
or in equity or before or by any governmental department, commission, board,
bureau,
agency or instrumentality, domestic or foreign, or before any arbitrator of
any kind, which would result in any material adverse change in the business,
operations, prospects, properties, assets or condition, financial or
otherwise, of the Trust or in the ability of the Trust to perform its
obligations under this Indenture, the other Programme Agreements executed by
it or any agreement or instrument delivered pursuant hereto or thereto; and
the Trust is not aware of any existing ground on which any such action, suit
or proceeding might be commenced with any reasonable likelihood of success;
and the Trust is not in default with respect to any judgment, order, writ,
injunction, decree, award, rule or regulation of any court, arbitrator or
governmental department, commission, board, bureau, agency or
instrumentality, domestic or foreign, which, either separately or in the
aggregate, would result in any such material adverse change;
	 
	 	(d)	 	No Burdensome Agreements. It is not a party to any agreement
or instrument which materially adversely affects its ability to perform its
obligations under this Indenture, the other Programme Agreements executed by it
or any agreements or instruments delivered pursuant hereto or thereto or
materially adversely affects the business, operations, prospects, properties,
assets or condition, financial or otherwise, of the Trust;
	 
	 	(e)	 	No Restriction. It is not subject to any restriction or any
judgment, order, writ, injunction, decree, award, rule or regulation which
materially adversely affects, or in the future may materially adversely affect,
the business, operations, prospects, properties, assets or condition, financial
or

- 43 -

 

	 	 	 	otherwise, of the Trust or its ability to perform its obligations under this
Indenture, the other Programme Agreements executed by it or any agreements or
instruments delivered pursuant hereto or thereto;
	 
	 	(f)	 	No Conflict. Neither the execution nor delivery of this
Indenture, the other Programme Agreements executed by it or any agreements or
instruments delivered pursuant hereto or thereto, the consummation of the
transactions herein and therein contemplated, nor compliance with the terms,
conditions and provisions hereof or thereof conflicts with or will conflict
with, or results or will result in any breach of, or constitutes a default
under, (i) any of the provisions of the Declaration of Trust or any agreements
or instruments to which the Trust is a party or by which it or any of its
property and assets are bound, or (ii) the constating documents or by-laws of
the Issuer Trustee or any resolution of the board of directors (or any
committee thereof) or shareholders of the Issuer Trustee, or results or will
result in the creation or imposition of any mortgage, lien, charge or
encumbrance of any nature whatsoever (except as contemplated herein) upon any
of the property or assets of the Trust or in contravention of any applicable
law, rule or regulation of Canada or of any of the Provinces or Territories of
Canada;
	 
	 	(g)	 	No Consents Required. No consent, approval or authorization
of, or declaration, registration, filing or qualification with, or giving of
notice to, or taking of any other action in respect of, any governmental
authority or agency on the part of the Trust is required in connection with the
execution and delivery of this Indenture, the other Programme Agreements
executed by it or any agreements or instruments delivered pursuant hereto or
thereto or the consummation of any of the transactions contemplated hereby or
in connection with the enforcement of this Indenture, the other Programme
Agreements executed by it or any agreements or instruments delivered pursuant
hereto or thereto other than as may be required under applicable securities
laws and regulations or such as have been previously obtained, made, given or
taken, as the case may be;
	 
	 	(h)	 	Collateral. The Collateral is free from all encumbrances,
except those arising pursuant to this Indenture, any Hypothec or any other
Permitted Lien;
	 
	 	(i)	 	No Default. No event has occurred which constitutes, or with
notice or lapse of time or both, would constitute a Related Event of Default;
and
	 
	 	(j)	 	Residency. The Issuer Trustee and the Trust are not a
non-resident of Canada within the meaning of the ITA.

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7.2 Representation and Warranty of Indenture Trustee.

          The Indenture Trustee hereby represents and warrants to the Trust that the execution, delivery
and performance by the Indenture Trustee of this Indenture are (a) within the powers of the
Indenture Trustee, (b) have been duly authorized by all necessary action on the part of the
Indenture Trustee, (c) do not contravene any law in effect on the date of this Indenture or
contractual restriction binding on or affecting the Indenture Trustee, (d) have been duly executed
and delivered by the Indenture Trustee, and (e) constitute valid and binding obligations of the
Indenture Trustee enforceable against the Indenture Trustee in accordance with its terms subject to
(i) applicable bankruptcy, insolvency, moratorium and similar laws at the time in effect affecting
the rights of creditors generally, and (ii) equitable principles which may limit the availability
of certain remedies, including the remedy of specific performance.

7.3 Survival of Representations and Warranties.

          The representations and warranties of the Trust and the Indenture Trustee in Sections 7.1 and
7.2 shall survive the execution of this Indenture.

ARTICLE 8

EVENTS OF DEFAULT

8.1 Related Event of Default.

          A “Related Event of Default” means, with respect to the Related Notes, (i) the happening of
any event specified as such in the Related Supplement; or (ii) the happening of one or more of the
following events:

	 	(a)	 	Default in Payment. The Trust fails to pay any of the Related
Obligations Secured when the same becomes due and payable under any provision
of this Indenture, the Related Supplement or such Notes (other than where the
Trust has advised the Indenture Trustee in writing that such failure resulted
from inadvertence or error on the part of the Trust and which failure is
capable of timely rectification without having a material adverse effect on the
ability of the Trust to satisfy its obligations under such Notes (which
determination shall be made without regard to the availability of any Credit
Enhancement)) and such failure continues for a period of three Business Days
after the date on which written notice of such failure, requiring the same to
be remedied, shall have been given to the Trust by the Indenture Trustee or by
the holders of not less than 25% of the aggregate principal amount of the
Related Notes then outstanding; provided that, for greater certainty, no such
failure shall be considered to occur by reason or in consequence or as a result
of amounts that may be deducted or withheld under the ITA or any other
applicable taxation statute by the Trust or the Indenture Trustee from any
payment to be made to any holder of such Notes having been so deducted or
withheld and such

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	 	 	 	amounts having been remitted to the appropriate governmental
authorities on behalf of such Noteholder;
	 
	 	(b)	 	Insolvency. The Trust admits the inability of the Trust to pay
its liabilities generally as they become due or makes a general assignment for
the benefit of the creditors of the Trust or otherwise acknowledges the
insolvency of the Trust or any proceeding shall be instituted by or against the
Trust seeking to adjudicate it a bankrupt or insolvent or seeking liquidation,
winding up, dissolution, reorganization, arrangement, adjustment, protection,
relief or composition of it or its debts under any law relating to bankruptcy,
insolvency, re-organization, moratorium or relief of debtors or seeking the
entry of an order for relief by the appointment of a receiver, trustee,
liquidator or other similar official for the Trust or for any substantial part
of its property and if such proceeding has been instituted against the Trust
either such proceeding has not been stayed or dismissed within 45 days or any
of the actions sought in such proceeding (including the entry of an order for
relief or the appointment of a receiver), are granted in whole or in part or if
a receiver is privately appointed in respect of the Trust or of the property of
the Trust or any substantial part thereof;
	 
	 	(c)	 	Levy of Execution. An encumbrancer, other than the Indenture
Trustee, takes possession of the Related Collateral or any material part
thereof, or any process or execution is levied or enforced upon or against the
Related Collateral or any material part thereof, and remains unsatisfied for
such period as would permit any such property to be sold thereunder, unless
such process is in good faith disputed by the Trust and the Trust gives or
causes to be given security which is sufficient to pay in full the amount
thereby claimed in case the claim is held to be valid;
	 
	 	(d)	 	Winding-Up Order. An order is made or an effective resolution
passed for the winding up, liquidation or dissolution of the Trust;
	 
	 	(e)	 	Default in Performance. The Trust defaults in the performance
of any covenant contained in this Indenture not covered by Section 8.1(a)
(except to any extent which has not had and which could not reasonably be
expected to have a material adverse effect on the ability of the Trust to pay
any Related Obligations Secured when the same become due) and such default
remains unremedied for a period of 30 days after notice thereof is given in
writing by the Indenture Trustee or by the holders of not less than 25% of the
aggregate principal amount of the Related Notes then outstanding specifying the
nature of the default and requiring that it be remedied; provided that such 30
day grace period shall only be applicable if (i) the Trust is proceeding with
all due diligence to cure or cause to be cured such failure; (ii) its
proceedings can be reasonably expected to cure

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	 	 	 	or cause to be cured such
failure within such period and (iii) it has delivered a Certificate of the
Trust to such effect; or
	 
	 	(f)	 	Breach of Representation or Warranty. Any representation or
warranty made by the Trust in or pursuant to this Indenture, any Related
Supplement or any other document or instrument delivered hereunder proves to
have been incorrect when made, and such incorrect representation or warranty
could reasonably be expected to have a material adverse effect on the ability
of the Trust to satisfy its obligations under the Related Notes (such material
adverse effect to be determined without reference to any available Credit
Enhancement) and continues to be unremedied for a period of 30 days after
delivery by the Indenture Trustee or by the holders of not less than 25% of the
aggregate principal amount of the Related Notes then outstanding of written
notice thereof to the Trust specifying the nature of the incorrectness and
requiring that it be remedied; provided that such 30 day grace period shall
only be applicable if (i) the Trust is proceeding with all due diligence to
cure or cause to be cured such incorrectness; (ii) its proceedings can be
reasonably expected to cure or cause to be cured such incorrectness within such
period and (iii) it has delivered a Certificate of the Trust to such effect.

8.2 Acceleration of Maturity; Rescission and Annulment.

	 	(1)	 	Subject to the terms of the Related Supplement for any Series, if a Related
Event of Default for any Series should occur and be continuing, then and in every such
case (other than in the case of a Related Event of Default described in Section 8.1(b),
Section 8.1(d) or as provided in the Related Supplement for any Series) the Indenture
Trustee or the Noteholders of such Series representing not less than 25% of the
aggregate principal amount of Notes of such Series then outstanding may declare all the
Notes of such Series to be immediately due and payable, by a notice in writing to the
Trust (and to the Indenture Trustee if given by the Noteholders), and upon any such
declaration or upon the occurrence of a Related Event of Default described in
Section 8.1(b), Section 8.1(d) or as provided in the Related Supplement for any Series,
the aggregate principal amount of Notes of such Series then outstanding, together with
accrued and unpaid interest thereon through the date of acceleration, shall become
immediately due and payable and the security hereby constituted shall forthwith become
enforceable. Subject to the provisions of Section 8.2(2), if such declaration of or
other acceleration of maturity of a Series has been made, the Trust will forthwith pay
to the Indenture Trustee and the Related Specified Creditors in accordance with
Section 9.5, all Related Obligations Secured together with all accrued and unpaid
interest thereon to the date of such payment. The Indenture Trustee shall give prompt
notice of any acceleration of maturity pursuant to this Section 8.2(1) to the Related
Rating Agencies.

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	 	(2)	 	At any time after such declaration of or other acceleration of maturity of a
Series has been made and before a judgment or order for payment of the money due has
been obtained by the Indenture Trustee as provided in Article 9, the Noteholders
representing not less than 50% of the aggregate principal amount of the Notes of such
Series then outstanding may, by written notice to the Trust and the Indenture Trustee,
rescind and annul such declaration or other acceleration and its consequences if:

	 	(a)	 	the Trust has paid or deposited with the Indenture Trustee a
sum sufficient to pay:

	 	(i)	 	all payments of principal of and interest that
are then due on all Notes of the affected Series and all other amounts
that would then be due hereunder or upon such Notes if the Related
Event of Default giving rise to such acceleration had not occurred;
	 
	 	(ii)	 	all sums paid or advanced by the Indenture
Trustee hereunder and the reasonable compensation, expenses,
disbursements and advances of the Indenture Trustee and its agents and
Counsel; and
	 
	 	(iii)	 	all amounts then due and payable to the other
Related Specified Creditors; and

	 	(b)	 	all Related Events of Default, other than the non-payment of
the principal of the Notes that have become due solely by such acceleration,
have been cured or waived in accordance with this Section 8.2(2).
	 
	 	No such rescission shall affect any subsequent Related Default or Related Event of
Default or impair any right consequent thereto. The Indenture Trustee shall give
prompt notice of any such rescission or annulment to the Related Rating Agencies.

	 	(3)	 	If a Related Event of Default for any Series should occur and be continuing and
an acceleration of maturity of such Series pursuant to Section 8.2(1) has not been
made, the holders of the Notes of such Series shall have the right and power
(exercisable by resolution of the holders of not less than 50% of the aggregate
outstanding principal amount of the affected Notes) to instruct the Indenture Trustee
to waive a Related Event of Default arising solely from: (i) a Related Event of
Default specified in the Related Supplement as being an event which may be waived
pursuant to this Section 8.2(3); or (ii) an event described in Section 8.1(e) or
8.1(f), and upon the receipt of such instruction, the Indenture Trustee will thereupon
waive the Related Event of Default upon the terms and conditions as such holders of
Notes prescribe, provided always that no act or omission by either the Indenture
Trustee or such holders of Notes will extend to or be taken in any manner whatsoever to
affect any subsequent Related Event of

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	 	 	 	Default or the rights resulting therefrom. The
Indenture Trustee shall give prompt notice of any such waiver to the Related Rating
Agencies.

8.3 Notice of Related Default or Related Event of Default.

	 	(1)	 	The Indenture Trustee shall give notice to the applicable Noteholders of the
occurrence of a Related Event of Default, within a reasonable time, but not exceeding
in any event 10 days, after the Indenture Trustee receives notice of the occurrence
thereof, unless the Indenture Trustee in good faith determines that the withholding of
such notice is in the best interests of the Noteholders and so advises the Trust in
writing. The Indenture Trustee shall give notice of the occurrence of every Related
Event of Default to the Related Rating Agencies as soon as possible but in any event
within five Business Days after the Indenture Trustee receives notice of the occurrence
thereof.
	 
	 	(2)	 	The Indenture Trustee shall give notice to the applicable Noteholders of the
occurrence of a Related Default to which it has actual knowledge, within a reasonable
time, but not exceeding in any event 5 days, after the Indenture Trustee receives
notice of the occurrence thereof, unless the Indenture Trustee in good faith determines
that the withholding of such notice is in the best interests of the Noteholders and so
advises the Trust in writing. The Indenture Trustee shall give notice of the
occurrence of every Related Default to which it has actual knowledge to the Related
Rating Agencies as soon as possible but in any event within five Business Days after
the Indenture Trustee receives notice of the occurrence thereof.
	 
	 	(3)	 	When such notice of an occurrence of a Related Default or Related Event of
Default has been given and the Related Default or Related Event of Default, as
applicable, is thereafter cured, notice that the Related Default or Related Event of
Default, as applicable, is no longer continuing shall be given by the Indenture Trustee
to Persons to whom notice was sent pursuant to Section 8.3(1) or Section 8.3(2) as soon
as practicable after the curing of such Related Default or Related Event of Default, as
applicable, but not exceeding in any event 30 days, after the Indenture Trustee
receives notice that the Related Default or Related Event of Default, as applicable,
has been cured.

ARTICLE 9

REMEDIES

9.1 Collection Of Indebtedness And Suits For Enforcement By Indenture Trustee.

	 	(1)	 	The Trust covenants that upon the acceleration of any Series pursuant to
Section 8.2, the Trust will, upon demand of the Indenture Trustee, pay to it, for the
benefit of the Noteholders of such Series, the whole amount then due and payable on
such Notes for principal and interest, with interest upon the overdue

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	 	 	 	principal and
interest at the applicable interest rate, and in addition thereto such further amount
as shall be sufficient to cover the costs and expenses of collection, including the
reasonable compensation, expenses, disbursements and advances of the Indenture Trustee
and its agents, experts, advisors and Counsel (less any taxes required to be deducted
pursuant to applicable laws).
	 
	 	(2)	 	If the Trust shall fail forthwith to pay such amounts upon such demand, the
Indenture Trustee, in its own name and as trustee of an express trust, may institute a
Proceeding for the collection of the sums so due and unpaid, and may prosecute such
Proceeding to judgment, and may enforce the same against the Trust and collect in the
manner provided by law out of the Related Collateral, wherever situated, the moneys
adjudged or ordered to be payable.
	 
	 	(3)	 	If any Related Event of Default in respect of any Series occurs and is
continuing, the Indenture Trustee may, as more particularly provided in Section 9.4,
proceed to protect and enforce its rights and the rights of the Related Noteholders and
other Related Specified Creditors, by such appropriate Proceedings as such Noteholders
shall specify to protect and enforce any such rights, whether for the specific
enforcement of any covenant or agreement in this Indenture or in aid of the exercise of
any power granted herein, or to enforce any other proper remedy or legal or equitable
right vested in the Indenture Trustee by this Indenture or by law.
	 
	 	(4)	 	In case there shall be pending, relative to the Trust upon the Related
Obligations Secured for any Series or any Person having or claiming an ownership
interest in the Related Collateral, Proceedings under any applicable bankruptcy,
insolvency or other similar law, or in case a receiver, assignee, trustee in
bankruptcy,
liquidator, sequestrator or similar official shall have been appointed for or taken
possession of the Trust or its property, or in case of any other comparable judicial
Proceedings relative to the Trust upon such Related Obligations Secured, or to the
creditors or property of the Trust, the Indenture Trustee, irrespective of whether
the principal of any affected Obligations Secured shall then be due and payable as
therein expressed or by acceleration or otherwise and irrespective of whether the
Indenture Trustee shall have made any demand pursuant to this Section 9.1, shall be
entitled and empowered, by intervention in such Proceedings or otherwise:

	 	(a)	 	to file and prove a claim or claims for the whole amount of
principal and interest owing and unpaid in respect of the Related Obligations
Secured and to file such other papers or documents as may be necessary or
advisable in order to have the claims of the Indenture Trustee (including any
claim for reasonable compensation to the Indenture Trustee and each predecessor
Indenture Trustee, and their respective agents, attorneys and Counsel, and for
reimbursement of all expenses and liabilities incurred, and all advances made,
by the Indenture Trustee and each predecessor Indenture Trustee, except to the
extent resulting from their own wilful

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	 	 	 	misconduct or negligence) and of the
Related Specified Creditors allowed in such Proceedings;
	 
	 	(b)	 	unless prohibited by applicable law or regulations, to vote on
behalf of the Specified Creditors for any affected Series in any election of a
receiver, trustee, a monitor, an interim trustee or any Person performing
similar functions in any such Proceedings;
	 
	 	(c)	 	to collect and receive any moneys or other property payable or
deliverable on any such claims and to distribute in accordance with this
Indenture all amounts received with respect to the claims of the affected
Noteholders and other Related Specified Creditors and of the Indenture Trustee
on their behalf; and
	 
	 	(d)	 	to file such proofs of claim and other papers or documents as
may be necessary or advisable in order to have the claims of the Indenture
Trustee or the Related Specified Creditors allowed in any Proceedings relative
to the Trust, its creditors and its property;

	 	 	 	and any receiver, trustee, liquidator, assignee, custodian, sequestrator or other
similar official in any such Proceeding is hereby authorized by each of such Related
Specified Creditors to make payments to the Indenture Trustee, and, in the event
that the Indenture Trustee shall consent to the making of payments directly to such
Related Specified Creditors, to pay to the Indenture Trustee such amounts as shall
be sufficient to cover reasonable compensation to the Indenture Trustee, each
predecessor Indenture Trustee and their respective agents, attorneys and Counsel,
and all other expenses and liabilities incurred, and all advances made, by the
Indenture Trustee and each predecessor Indenture Trustee except as a result of
wilful misconduct or negligence.

	 	(5)	 	Nothing herein contained shall be deemed to authorize the Indenture Trustee to
authorize or consent to or vote for or accept or adopt on behalf of any Related
Specified Creditor any plan of reorganization, arrangement, adjustment or composition
affecting the Related Obligations Secured or the rights of any Related Specified
Creditor or to authorize the Indenture Trustee to vote in respect of the claim of any
Related Specified Creditor in any Proceedings except, as aforesaid, to vote for the
election of a trustee in bankruptcy or similar Person.
	 
	 	(6)	 	All rights of action and of asserting claims under this Indenture and any
Related Supplement, or under any of the Related Obligations Secured, may be enforced by
the Indenture Trustee without the possession of any of the Related Obligations Secured
or the production thereof in any trial or other Proceedings relative thereto, and any
such Proceedings instituted by the Indenture Trustee shall be brought in its own name
and as trustee of an express trust, and any recovery of judgment, subject to the
payment of the expenses, disbursements and compensation of the Indenture Trustee, each
predecessor Indenture Trustee and

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	 	 	 	their respective agents and attorneys, shall be for
the benefit of the Related Specified Creditors.
	 
	 	(7)	 	In any Proceedings brought by the Indenture Trustee (and also any Proceedings
involving the interpretation of any provision of this Indenture to which the Indenture
Trustee shall be a party), the Indenture Trustee shall be held to represent all Related
Specified Creditors, and it shall not be necessary to make any Related Specified
Creditor a party to any such Proceedings.

9.2 Remedies; Priorities.

	 	(1)	 	If a Related Event of Default in respect of any Series shall have occurred and
be continuing, the Indenture Trustee may do one or more of the following (subject to
Section 9.4):

	 	(a)	 	institute Proceedings in its own name and as trustee of an
express trust for the collection of all amounts then payable on the Related
Obligations Secured or under this Indenture and the Related Supplement with
respect thereto, whether by declaration or otherwise, enforce any judgment
obtained, and collect upon such Obligations Secured moneys adjudged due;
	 
	 	(b)	 	institute Proceedings from time to time for complete or partial
foreclosure with respect to the Related Collateral;
	 
	 	(c)	 	exercise any remedies of a secured party under the PPSA,
including taking possession of and using the Related Collateral or any portion
thereof, and take any other appropriate action to protect and enforce the
rights and remedies of the Indenture Trustee and the Specified Creditors of
such Series;
	 
	 	(d)	 	appoint a Receiver with respect to the Related Collateral; and
	 
	 	(e)	 	sell the Related Collateral, or any portion thereof or rights
or interest therein, at one or more public or private sales called and
conducted in any manner permitted by law;

	 	 	 	provided, however, that the Indenture Trustee may not sell or otherwise liquidate
the Related Collateral in respect of any Series following a Related Event of
Default, other than a Related Event of Default described in Section 8.1(b), Section
8.1(d) or a Related Event of Default so specified in the Related Supplement, unless:
(A) the Noteholders of such Series by Extraordinary Resolution consent thereto, (B)
the proceeds of such sale or liquidation distributable to the Noteholders of such
Series and the other Related Specified Creditors (other than the Related
Originators) will be sufficient to discharge in full all amounts then due and unpaid
upon the Related Obligations Secured or

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	 	 	 	(C) the Indenture Trustee determines that
the Related Collateral will not continue to provide sufficient funds for the payment
of principal of and interest on the Related Obligations Secured as they would have
become due if the Related Obligations Secured had not been declared due and payable,
and the Indenture Trustee obtains the consent of Noteholders of such Series by
Extraordinary Resolution of such Noteholders. In determining such sufficiency or
insufficiency with respect to clauses (B) and (C), the Indenture Trustee may, but
need not, obtain and rely upon an opinion of an independent investment banking or
accounting firm of national reputation as to the feasibility of such proposed action
and as to the sufficiency of the Related Collateral for such purpose.

	 	(2)	 	If the Indenture Trustee collects any money or property pursuant to this
Article 9 in respect of any Series or the Related Collateral, it shall pay out such
money or property in accordance with the Related Supplement.

9.3 Performance And Enforcement Of Certain Obligations.

	 	(1)	 	Promptly following a request from the Indenture Trustee to do so, the Trust
shall take all such lawful action as the Indenture Trustee may request to compel or
secure the performance and observance by an Originator, a Servicer or a Back-Up
Servicer, as applicable, of its obligations to the Trust under or in connection with
any applicable Securitization Agreement, Servicing Agreement or agreement with the
Back-Up Servicer in accordance with the terms thereof, and to exercise any and all
rights, remedies, powers and privileges lawfully available to the Trust under or in
connection with such Securitization Agreement, Servicing Agreement or other agreement
to the extent and in the manner directed by the Indenture Trustee, including the
transmission of notices of default on the part of the Originator, the Servicer or
Back-Up Servicer thereunder and the institution of legal or administrative actions or
proceedings to compel or secure performance by the Originator, the Servicer or Back-Up
Servicer of each of their obligations under the affected Securitization Agreement,
Servicing Agreement or other agreement.
	 
	 	(2)	 	If a Related Event of Default has occurred and is continuing, the Indenture
Trustee may, and at the direction (which direction shall be in writing) of the
Noteholders of such Series upon an Extraordinary Resolution of such Noteholders shall,
subject to Section 12.3, exercise all rights, remedies, powers, privileges and claims
of the Trust against the Related Originator or the Related Servicer under or in
connection with the Related Securitization Agreement or Related Servicing Agreement,
including the right or power to take any action to compel or secure performance or
observance by the Related Originator or the Related Servicer of each of their
obligations to the Trust thereunder and to give any consent, request, notice,
direction, approval, extension or waiver under the Related Securitization Agreement
or Related Servicing Agreement, and any right of the Trust to take such action shall
be suspended.

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9.4 Optional Preservation Of The Related Collateral.

          If the Notes of any Series have been declared to be due and payable under Section 8.2
following a Related Event of Default, and such declaration and its consequences have not been
rescinded and annulled, the Indenture Trustee may, but need not, elect to permit the Trust to
maintain possession of the Related Collateral. It is the desire of the parties hereto and the
Noteholders of each Series that there be at all times sufficient funds for the payment of principal
of and interest on the Related Notes, and the Indenture Trustee shall take such desire into account
when determining whether or not to permit the Trust to maintain possession of the Related
Collateral. In determining whether to permit the Trust to maintain possession of the Related
Collateral for any Series, the Indenture Trustee may, but need not, obtain and rely upon an opinion
of an independent investment banking or accounting firm of national reputation in Canada as to the
feasibility of such proposed action and as to the sufficiency of such Related Collateral for such
purpose.

9.5 Application of Moneys.

          Upon the occurrence and during the continuance of a Related Event of Default, the Indenture
Trustee shall establish and maintain one or more Related Collateral Accounts in respect of the
Notes of each particular Series into which shall be deposited all Related Collections (and the
proceeds of and interest on any Permitted Investments thereof) such that the Related Collections
required herein to be applied to the payment of Related Obligations Secured shall be segregated.
All moneys standing in the Related Collection Accounts attributable to the Related Asset Interests
at the time of a Related Event of Default shall be transferred to the appropriate Related
Collateral Accounts in accordance with the Related Securitization Agreements. All further Related
Collections and the proceeds of sale of any Related Collateral shall be deposited to the Related
Collateral Account in accordance with the Related Securitization Agreement, all as determined by
the Indenture Trustee, which determination shall be conclusive for purposes of this Indenture,
absent manifest error. The Indenture Trustee (and any receiver appointed by it pursuant to this
Indenture) shall have sole access to such accounts and shall apply the moneys therein for the
benefit of the Specified Creditors as provided in the Related Supplement and the Related
Securitization Agreement. Notwithstanding the foregoing, all moneys received on account of Related
Asset Interests which have been assigned to a Related Credit Enhancer pursuant to a Related Credit
Enhancement Agreement shall not be deposited to a Related Collateral Account but shall be remitted
by the Trust or the Indenture Trustee to the Related Credit Enhancer entitled thereto. All moneys
standing in a Related Collateral Account or otherwise received by the Indenture Trustee (or any
receiver appointed by it pursuant to this Indenture) pursuant to this Article 9 shall be applied in
the manner and priorities indicated in the Related Supplement and the Related Securitization
Agreement.

9.6 Trust Moneys.

          All moneys held by the Indenture Trustee pursuant to the provisions of this Indenture and any
Related Supplement shall, subject to any provision herein to the contrary, be held by the Indenture
Trustee as part of the Collateral as security for the Related Specified Creditors as herein
provided. Any moneys held by the Indenture Trustee under the trusts of this

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Indenture shall be invested by the Indenture Trustee in Permitted Investments upon written direction of the Trust.
Upon receipt of (i) a Certificate of the Trust stating that no Related Event of Default has
occurred and is continuing; and (ii) a Written Order for payment to the Trust, the Indenture
Trustee shall pay or cause to be paid all interest earned on moneys so deposited to the Trust.

9.7 Restoration Of Rights And Remedies.

          If the Indenture Trustee or any Noteholder has instituted any Proceeding to enforce any right
or remedy under this Indenture and any Related Supplement and such Proceeding has been discontinued
or abandoned for any reason or has been determined adverse to the Indenture Trustee or to such
Noteholder, then and in every such case the Trust, the Indenture Trustee and the Noteholders shall, subject to any
determination in such Proceeding, be restored severally and respectively to their former positions
hereunder, and thereafter all rights and remedies of the Indenture Trustee and the Noteholders
shall continue as though no such Proceeding had been instituted.

9.8 Delay Or Omission Not A Waiver.

          No delay or omission of the Indenture Trustee or any Specified Creditor to exercise any right
or remedy accruing upon any Related Default or Related Event of Default shall impair any such right
or remedy or constitute a waiver of any such Related Default or Related Event of Default or an
acquiescence therein. Every right and remedy given by this Article 9 or by law to the Indenture
Trustee or to the Specified Creditors may be exercised from time to time, and as often as may be
deemed expedient, by the Indenture Trustee or by the Specified Creditors, as the case may be.

9.9 Control By Noteholders.

          Subject to Section 12.3(3), the Noteholders of a Series by Extraordinary Resolution shall have
the right to direct the time, method and place of conducting any Proceeding for any remedy
available to the Indenture Trustee with respect to the Notes of such Series or exercising any trust
or power conferred on the Indenture Trustee with respect to the Related Collateral; provided, that:

	 	(a)	 	such direction shall not be in conflict with any rule of law or
with this Indenture or the Related Supplement;
	 
	 	(b)	 	any direction to the Indenture Trustee to sell or liquidate the
Related Collateral shall be subject to the express terms of Section 9.2;
	 
	 	(c)	 	if the Indenture Trustee elects to allow the Trust to retain
the Related Collateral pursuant to Section 9.4, then any contrary direction
shall require the approval of holders of Notes of such series by Extraordinary
Resolution; and

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	 	(d)	 	the Indenture Trustee may take any other action deemed proper
by the Indenture Trustee that is not inconsistent with such direction;

provided, however, that, subject to Sections 12.2 and 12.3, the Indenture Trustee need not take any
action that it determines might involve it in liability.

9.10 Purchase by Specified Creditors.

          Any one or more of the Specified Creditors or any agent or representative thereof may become
purchasers at any sale of any Collateral whether made under the power of sale herein contained or
pursuant to judicial proceedings.

9.11 Protection of Persons Dealing with Indenture Trustee.

          No Person dealing with the Indenture Trustee or its agents will be obliged to inquire as to
whether any of the security hereby constituted has become enforceable, or whether the powers which
the Indenture Trustee is purporting to exercise have become exercisable, or whether any money
remains due upon such security hereby constituted or the Obligations Secured, or as to the
necessity or expediency of the stipulations and conditions subject to which any sale is made, or
otherwise as to the propriety or regularity of any sale or of any other dealing by the Indenture
Trustee with any of the Collateral, or to see to the application of any money paid to the Indenture
Trustee; and in the absence of fraud on the part of the Person, the dealing will be deemed, so far
as regards the safety and protection of the Person, to be within the powers hereby conferred and to
be valid and effectual accordingly.

9.12 Remedies Cumulative.

          No right or remedy herein conferred upon or reserved to the Indenture Trustee, or upon or to
the Specified Creditors is intended to be exclusive of any other right or remedy, and every right
and remedy shall be cumulative and is in addition to every other right and remedy given hereunder
or now existing or hereafter to exist by law, in equity or by statute.

9.13 The Trust to Execute Confirmatory Deed.

          In case of any sale hereunder, whether by the Indenture Trustee or under judicial proceedings,
the Trust will execute and deliver to the purchaser on demand any instrument reasonably necessary
to confirm to the purchaser its title to the property so sold, and in case of any such sale, the
Indenture Trustee is hereby irrevocably authorized to carry the sale into effect and to execute on
its behalf and in its name any such confirmatory instrument.

9.14 Indenture Trustee Appointed Attorney.

          The Trust irrevocably constitutes and appoints the Indenture Trustee and any officer,
representative or employee thereof, with full power of substitution, as its true and lawful
attorney with full power and authority in the name of the Trust or in its own name, in its
discretion, upon the occurrence and during the continuance of any Related Event of Default, for the
purpose of carrying out the terms of this Indenture to take all appropriate action and to

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execute any and all documents and instruments which may be necessary or desirable to accomplish the
purposes hereof, and without limiting the generality of the foregoing, hereby gives the Indenture
Trustee the power and right on behalf of the Trust, without notice to or assent by the Trust, to
the extent permitted by applicable law, to do the following:

	 	(a)	 	to ask for, demand, sue for, collect and receive all and any
moneys due or becoming due with respect to the Related Collateral;
	 
	 	(b)	 	to receive, take, endorse, assign and deliver any and all
cheques, notes, drafts, acceptances, documents and other negotiable and
non-negotiable instruments, documents and chattel paper taken or received by
the Indenture Trustee in connection therewith and herewith; and
	 
	 	(c)	 	to commence, file, prosecute, defend, settle, compromise or
adjust any claim, suit, action or proceeding with respect to the Related
Collateral.

The foregoing power of attorney shall be coupled with an interest and survive any dissolution,
liquidation or winding-up of the Trust.

9.15 Credit Enhancement Agreements.

          Notwithstanding any other provision of this Indenture, where, with respect to the Notes of any
particular Series, (i) the unutilized portion of the Credit Enhancement available under any Related
Credit Enhancement Agreement is greater than zero; or (ii) the Related Credit Enhancer is owed any
amount thereunder, in making any disposition of the Related Collateral, the Indenture Trustee
shall, if so set out in a Related Supplement, exercise its rights and privileges under this Article
9 in accordance with those sections of such Related Credit Enhancement Agreement specifically
identified in the Related Supplement, and the Related Credit Enhancer shall have the right upon
giving written notice to the Indenture Trustee and the Related Rating Agencies to initiate at any
time any action, suit, or proceeding to enforce its rights under such agreement. Without limiting
the generality of the foregoing, any conflict between the provisions of this Indenture and those
provisions of the Credit Enhancement Agreement specifically identified in the Related Supplement
shall be resolved by applying such provisions of the Credit Enhancement Agreement so long as the
unutilized portion of the Credit Enhancement available thereunder is greater than zero or the
Related Credit Enhancer is owed any amount thereunder. Any funds received by way of Related
Collections of amounts payable in respect of Related Asset Interests which have been purchased by
the Related Credit Enhancer shall, notwithstanding any other provision hereof, be held in trust
separate and apart in a
segregated account for the benefit of the Related Credit Enhancer and remitted to the Related
Credit Enhancer as it may direct as soon as practicable.

9.16 Disclaimer of Marshalling.

          In the event that the security hereby constituted shall become enforceable and the Indenture
Trustee shall have determined or become bound to enforce the same, the Trust covenants not to
invoke the doctrine of marshalling or any other equitable principle for the

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purpose of requiring the Indenture Trustee to realize or to have realized on any particular asset forming part of the
Collateral.

9.17 Appointment of Receiver.

          If the Indenture Trustee determines under the provisions of this Indenture to appoint a
Receiver in respect of any Series, the following provisions will apply:

	 	(a)	 	the Indenture Trustee may from time to time in the same manner
remove any Receiver so appointed and appoint another in its stead; in making
any appointment the Indenture Trustee will be deemed to be acting as the agent
of the Trust;
	 
	 	(b)	 	any appointment will be limited to the Related Collateral and
may be made either before or after the Indenture Trustee has taken possession
of such Related Collateral;
	 
	 	(c)	 	every Receiver may in the discretion of the Indenture Trustee
be vested with all or any of the powers and discretions of the Indenture
Trustee;
	 
	 	(d)	 	the Indenture Trustee may from time to time fix the reasonable
remuneration of every Receiver and direct the payment thereof out of such
Related Collateral, the income therefrom or the proceeds thereof;
	 
	 	(e)	 	the Indenture Trustee may from time to time require any
Receiver to give security for the performance of its duties and may fix the
nature and amount thereof, but will not be bound to require security;
	 
	 	(f)	 	every Receiver may, with the consent in writing of the
Indenture Trustee, borrow money and grant security for the purposes of the
maintenance, protection or preservation of such Related Collateral or any part
thereof with any amount so borrowed and any interest thereon to be a charge or
lien on such Related Collateral in priority to the security hereby constituted;
	 
	 	(g)	 	every Receiver will, so far as concerns responsibility for its
acts or omissions, be deemed the agent of the Trust and in no event the agent
of the Indenture Trustee, and the Indenture Trustee will not, in making or
consenting to the appointment, incur any liability to the Receiver for its
remuneration or otherwise, provided that the Trust hereby irrevocably
authorizes the Indenture Trustee to give instructions to the Receiver relating
to the performance of its duties as set out herein;
	 
	 	(h)	 	except as may be otherwise directed by the Indenture Trustee or
as otherwise specifically provided in this Indenture, all money from time to

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	 	 	 	time received by any Receiver will be paid over to the Indenture Trustee to be
held by it on the trusts of this Indenture; and

	 	(i)	 	the Indenture Trustee may pay over to any Receiver any money
constituting part of such Related Collateral to the extent that the same may be
required to be applied for the purposes hereof by such Receiver, and the
Indenture Trustee may from time to time determine what funds such Receiver is at liberty to keep in hand with a view
to the performance of its duty as Receiver.

9.18 Holding in Trust.

          If, with respect to the Notes of any particular Series, a Related Event of Default shall have
occurred and be continuing and the Indenture Trustee or any holder of the Related Notes shall
receive from the Trust, or the Indenture Trustee shall hold, any amount for payment of the
principal of or interest on such Notes, the Indenture Trustee or such holder, as the case may be,
shall hold such amount in trust for the benefit of the Related Specified Creditors, as their
interests may appear in the Related Securitization Agreements, in accordance with and to the extent
of their respective priorities. The Indenture Trustee or any such holder of Related Notes, as the
case may be, shall from time to time, in accordance with Section 9.5 and the Related Supplement,
pay over to the appropriate Related Specified Creditors from the amount so held in trust for the
benefit of such Related Specified Creditors, so much as shall at the time of such payment by the
Indenture Trustee or such holder of Related Notes, as the case may be, have become due, and remain
unpaid, of the Related Obligations Secured or, if the amount so due and remaining unpaid shall be
greater than the amount so held in trust for the benefit of such Related Specified Creditors, then
the entire amount so held; provided, however, that if such Related Event of Default shall be waived
in accordance with Section 8.2, or all amounts that shall have become due for payment of the
Related Obligations Secured shall have been paid or duly provided for to the satisfaction of the
Indenture Trustee, such trusts for the benefit of such Related Specified Creditors shall terminate
and any amount still held by the Indenture Trustee or any Related Noteholder, as the case may be,
shall be applied by it for the purposes originally intended. In the event that the Indenture
Trustee shall make any payment to any holder of Related Notes contrary to the provisions of this
Section 9.18, then such holder shall repay any amount so received to the Indenture Trustee, to be
held and applied by the Indenture Trustee in accordance with the provisions of this Section 9.18.

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ARTICLE 10

SUITS BY SPECIFIED CREDITORS AND INDENTURE TRUSTEE

10.1 Specified Creditors May Not Sue.

          Subject to Section 9.15, no Specified Creditor will have any right to institute any Proceeding
for payment of any part of the Obligations Secured or for the purpose of bringing Collateral to
sale, or for the execution of any trust or power hereunder in relation thereto, or for the
appointment of a Receiver of such Collateral or for any other remedy hereunder, unless the
following conditions precedent have been fulfilled:

	 	(a)	 	the Specified Creditor previously has given to the Indenture
Trustee written notice of the happening of a Related Event of Default;
	 
	 	(b)	 	in the case of any Proceeding by the Noteholders of any
particular Series, such Noteholders, by Extraordinary Resolution, have made a
request to the Indenture Trustee and the Indenture Trustee has been afforded
reasonable opportunity itself to either proceed to exercise the powers
hereinbefore granted or to institute a Proceeding in its name for the purpose
requested;
	 
	 	(c)	 	in the case of any Proceeding by a Specified Creditor other
than the Noteholders of any particular Series, such Specified Creditor has made
a written request to the Indenture Trustee and the Indenture Trustee has been
afforded reasonable opportunity itself to either proceed to exercise the powers
hereinbefore granted or to institute a Proceeding in its name for the purpose
requested;
	 
	 	(d)	 	the Specified Creditors referred to in (b) or (c) above have
offered to the Indenture Trustee, when so requested by the Indenture Trustee,
sufficient funds and security and indemnity satisfactory to the Indenture
Trustee, acting reasonably, against the costs, expenses and liabilities to be
incurred therein or thereby; and
	 
	 	(e)	 	the Indenture Trustee has failed to act hereunder within a
reasonable time which shall, for the purposes hereof, not exceed a period of 60
days in any event after notification, request and offer of sufficient funds and
indemnity by such Specified Creditors;

it being understood and intended that no Related Specified Creditor with respect to a Series shall
have any right in any manner whatsoever to take any action against any Collateral other than the
Related Collateral or to effect, disturb or prejudice the rights of any other Specified Creditor
(of the same or any other Series), or to obtain or seek to obtain priority over or preference to
any other Specified Creditor (of the same or any other Series), or to enforce any right under this
Indenture, except in the manner herein provided and for the equal, rateable and common benefit of
all Related Specified Creditors of the same Series, except as otherwise expressly provided in this
Indenture and the Related Supplement.

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10.2 Indenture Trustee Not Required to Possess Notes.

          All rights of action under this Indenture may be enforced by the Indenture Trustee without the
possession of any of the Notes or the production thereof at any trial or other proceedings relative
thereto and any such Proceeding instituted by the Indenture Trustee may be brought in its own name
as trustee of an express trust. Any recovery of judgment shall, after provision for the payment of
the reasonable compensation, expenses, disbursements and advances of the Indenture Trustee, its
agents and Counsel, be for the benefit of the Specified Creditors in respect of which such judgment
has been recovered in the manner herein provided.

10.3 Indenture Trustee May Institute All Proceedings.

          The Indenture Trustee will have the power to institute and maintain any and all Proceedings as
it may consider necessary or expedient to enforce the security hereby constituted or pursuant to
any Hypothec or to prevent any impairment of such security by any acts of the Trust or of others in
contravention of this Indenture or the Programme Agreements or in violation of law, or as the
Indenture Trustee may be advised by Counsel are necessary or expedient to preserve and to protect
its interest and the security and interests of the Specified Creditors in respect of the Collateral
or in respect of the income, earnings, issues and profits therefrom. Following the occurrence of a
Related Event of Default, any suit or proceedings may be instituted by the Indenture Trustee
against others in the name of the Trust and the Indenture Trustee is hereby irrevocably constituted
and appointed the agent of the Trust for this purpose.

10.4 Application of Proceeds.

          If, following the occurrence of a Related Event of Default which is then continuing, any
Related Specified Creditor receives any amount in satisfaction of any part of the Related
Obligations Secured from any source whatsoever other than pursuant hereto, such amount shall be
held in trust for and immediately remitted to the Indenture Trustee and shall be applied by the
Indenture Trustee in the manner provided in Section 9.5.

ARTICLE 11

MEETINGS OF NOTEHOLDERS

11.1 Right to Convene Meetings.

          The Indenture Trustee may at any time and from time to time and will on receipt of a Written
Order or a written request signed by the holders of not less than 25% of the aggregate principal
amount of the Notes then outstanding to which such meeting relates and upon receiving sufficient
funds and on being indemnified to its reasonable satisfaction by the Trust or by the Noteholders
signing such order or request against the costs which may be incurred in connection with the
calling and holding of such meeting, convene a meeting of the Noteholders. In the event of the
Indenture Trustee failing within 15 days after receipt of any such order or request and such
sufficient funds and indemnity to give notice convening a meeting, the Trust or such Noteholders,
as the case may be, may convene such meeting. Every

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such meeting shall be held in the Municipality of Metropolitan Toronto or at such other place as the Indenture Trustee shall approve or determine.

11.2 Record Dates.

          For the purpose of determining the Noteholders entitled to receive notice of a meeting of
Noteholders to be held pursuant to this Article 11, the Issuer Trustee (or the Financial Services
Agent on behalf of the Trust or the Financial Services Sub-Agent on behalf of the Financial
Services Agent, as agent of the Trust) or the Indenture Trustee may fix in advance a date as the
record date for determining such Noteholders, which date shall not precede by more than 45 days or
be less than 15 days prior to the date on which the meeting is to be held.

11.3 Notice of Meetings.

          At least 15 days’ notice of any meeting will be given to (a) the Noteholders to which such
meeting relates in the manner provided in Section 14.3, (b) the other Related Specified Creditors
in the manner provided in Section 14.4, and (c) the Related Rating Agencies in the manner provided
in Section 14.5, and a copy thereof will be sent to the Indenture Trustee in the manner provided in
Section 14.2, unless the meeting has been called by it, and to the Trust, unless the meeting has
been called by it. Such notice will state the time when and the place where the meeting is to be
held and will state briefly the general nature of the business to be transacted thereat. It will
not be necessary for any such notice to set out the terms of any resolution to be proposed or any
of the provisions of this Article 11. Such notice will also state that any Noteholder may be
represented at any meeting of Noteholders by a proxy duly appointed by instrument in writing in
accordance with the regulations made from time to time by the Indenture Trustee pursuant to Section
11.10 and that the appointment of any proxy may be revoked at any time before the commencement of
the meeting to which the appointment relates. The non-receipt of any such notice by a Noteholder
shall not invalidate any resolution passed at such meeting.

11.4 Chairperson.

          The Indenture Trustee shall appoint in writing an individual, who need not be a Noteholder, to
be the chairperson of the meeting; provided, however, that the holders of not less than 50% of the
aggregate principal amount of the Notes then outstanding to which such meeting relates may elect at
such meeting another individual, who need not be a Noteholder, to be the chairperson of the
meeting. No vote shall be cast or counted at any meeting in respect of any Notes challenged as not
outstanding and ruled by the chairperson of the meeting to be not outstanding. The chairperson of
the meeting shall have no right to vote except as a holder of a Note or a proxyholder.

11.5 Quorum.

          Subject to the provisions of Section 11.15, at any meeting of the Noteholders a quorum will
consist of Noteholders present in person or by proxy and representing at least 25% of the aggregate
principal amount of the Notes then outstanding to which such meeting relates.

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If a quorum of the Noteholders is not present in person or by proxy within 30 minutes after the time fixed for holding
the meeting, then the meeting, if convened by or on the request of the Noteholders, will be
dissolved; but in any other case the meeting will be adjourned to the same day in the next calendar
week (unless such day is not a Business Day in which case it will be adjourned to the next
following Business Day thereafter) at the same time and place and no notice will be required to be
given in respect of such adjourned meeting. At the adjourned meeting the Noteholders present in
person or by proxy will constitute a quorum and may transact the business for which the meeting was
originally convened notwithstanding that they may not represent 25% of the aggregate principal
amount of the Notes then outstanding to which such meeting relates. Where a Noteholder has
executed a document in writing appointing a Person as proxy and such Person who is a proxyholder is
present at the meeting, the Noteholder shall be deemed to be present for the purposes of
determining a quorum and be deemed to have voted; provided, that such Noteholder shall be
considered as present or voting only with respect to the matters covered by such document in
writing.

11.6 Power to Adjourn.

          The chairperson of any meeting at which a quorum of Noteholders is present may, with the
consent of the holders of a majority of the principal amount of the Notes then outstanding
represented thereat, adjourn any such meeting and no notice of such adjournment need be given except such notice,
if any, as the meeting may prescribe.

11.7 Show of Hands.

          Every question submitted to a meeting will be decided in the first place by a majority of the
votes given on a show of hands except that votes on Extraordinary Resolutions will be given in the
manner provided in Section 11.8. At any such meeting, unless a poll is duly demanded as
hereinafter provided, a declaration by the chairperson that a resolution had been carried or
carried unanimously or by a particular majority or lost or not carried by a particular majority
will be conclusive evidence of the fact.

11.8 Poll.

          On every Extraordinary Resolution, and on any other question submitted to a meeting when
demanded by the chairperson or by one or more Noteholders or proxies for Noteholders holding at
least 5% of the aggregate principal amount of the Notes then outstanding to which such meeting
relates, a poll will be taken in such manner and either at once or after an adjournment as the
chairperson directs. Questions other than Extraordinary Resolutions will, if a poll be taken, be
decided by the votes of the holders of a majority in principal amount of the Notes then outstanding
represented at the meeting and voting on the poll.

11.9 Voting.

          On a show of hands, every person who is present and entitled to vote, whether as a Noteholder
or as proxy for one or more Noteholders or both, will have one vote. On a poll, each Noteholder
present in person or represented by a proxy will be entitled to one vote in

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respect of each $1,000 principal amount (or the Equivalent Amount in any other currency) of Notes of which he is then the
holder or which he represents by proxy. A proxy need not be a Noteholder. In the case of joint
registered holders of a Note, any one of them present in person or by proxy at the meeting may vote
in the absence of the other or others but in case more than one of them be present in person or by
proxy, they will vote together in respect of the Notes of which they are joint registered holders
and failing agreement among themselves as to how to vote, shall not be permitted to vote.

11.10 Regulations.

          The Indenture Trustee may from time to time make reasonable regulations and may make
reasonable variations to the regulations as it thinks fit with respect to:

	 	(a)	 	the voting by proxy by Noteholders and the form of instrument
appointing proxies and the manner in which the same will be executed and with
respect to the production of the authority of any Person signing on behalf of
the giver of the proxy;
	 
	 	(b)	 	the lodging of instruments appointing proxies at any place or
places and in such custody as the Indenture Trustee directs and the time, if
any, before the holding of the meeting or adjourned meeting by which the same
must be deposited;
	 
	 	(c)	 	the forwarding by the custodian thereof of particulars of
instruments appointing proxies by letter, cable, telegraph, facsimile or
electronic messaging system before the meeting to the Trust or to the Indenture
Trustee or to the chairperson of the meeting;
	 
	 	(d)	 	the issue of voting certificates to holders of Book-Entry Notes
which voting certificates shall entitle the holders named therein to be present
and vote at any such meeting and at any adjournment thereof or to appoint a
proxy or proxies to represent them and vote for them at any such meeting and at
any adjournment thereof, in the same manner and with the same effect as though
the holders so named in such voting certificates were the actual registered
holders of Definitive Notes; and
	 
	 	(e)	 	any other matters it deems necessary for the proper conduct of
the meeting.

Any regulations so made will be binding and effective and votes given in accordance therewith will
be valid and will be counted. Instruments appointing proxies, the particulars of which are
forwarded in accordance with the regulations, will confer the same right to vote as though the
instruments themselves were produced at the meeting. Save as herein otherwise specified, the only
Persons who will be recognized at any meeting of Noteholders as the holders of Notes or as entitled
to vote or be present at the meeting in respect thereof will be Noteholders to which such meeting
relates and holders of proxies of such Noteholders.

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11.11 The Trust and Indenture Trustee.

          Each of the Issuer Trustee, the Financial Services Agent, the Financial Services Sub-Agent,
the Indenture Trustee, the Related Credit Enhancers and the Related Rating Agencies, by their
respective employees, representatives, officers and directors, and the legal advisors of such
parties, may attend any meeting of any Noteholders, but will not as such have a vote.

11.12 Powers Exercisable by Extraordinary Resolution of all Noteholders.

	 	(1)	 	In addition to any powers hereinbefore given, the Noteholders generally shall
by Extraordinary Resolution of all Noteholders have the power to:

	 	(a)	 	subject to Sections 9.9, 12.3(2) and 12.3(3), require the
Indenture Trustee to exercise or refrain from exercising any of the powers
conferred upon it by this Indenture;
	 
	 	(b)	 	sanction the release of the Trust from its covenants and
obligations hereunder;
	 
	 	(c)	 	remove the Indenture Trustee from office and appoint a new
Indenture Trustee hereunder;
	 
	 	(d)	 	without limiting Section 13.3, permit or direct the Indenture
Trustee to sanction or consent to any amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance with, any Programme Agreement (including this Indenture but other
than a Related Supplement) which would otherwise not be permitted hereunder,
provided however that where such amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance, would, in the opinion of the Indenture Trustee materially adversely
affect the rights or interests of a Credit Enhancer or any other Specified
Creditor, the consent of such Credit Enhancer or other Specified Creditor shall
be required;
	 
	 	(e)	 	assent to any compromise or arrangement by the Trust with any
creditor, creditors or class or classes of creditors or with the holder of any
securities of the Trust;
	 
	 	(f)	 	restrain any holder of any Note from taking or instituting any
suit, action or proceeding for the recovery of amounts payable under such Note
or hereunder or for the execution of any trust or power hereunder or for the
appointment of a Receiver or trustee in bankruptcy or the winding up of the
Trust or for any other remedy hereunder and to direct such holder of

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	 	 	 	any Note to waive any Related Event of Default on which any suit or proceeding is
founded;

	 	(g)	 	direct any Noteholder bringing any action, suit or proceeding
and the Indenture Trustee to waive the Related Event of Default in respect of
which such action, suit or proceeding shall have been brought;
	 
	 	(h)	 	direct the Indenture Trustee to request the appointment of a
successor Financial Services Agent or Financial Services Sub-Agent pursuant to
Section 6.1(h), or to terminate the Financial Services Sub-Agency Agreement or
Section 2.2 thereof in accordance with Section 6.1 thereof;
	 
	 	(i)	 	appoint a committee with power and authority (subject to such
limitations, if any, as may be prescribed in the Extraordinary Resolution) to
exercise, and to direct the Indenture Trustee to exercise, on behalf of the
Noteholders, such of the powers of the Noteholders as are exercisable by
Extraordinary Resolution or other resolution as shall be included in the
Extraordinary Resolution appointing the committee. The Extraordinary
Resolution making such appointment may provide for payment of the expenses and
disbursements of and compensation to such committee. Such committee shall
consist of such number of persons as shall be prescribed in the Extraordinary
Resolution appointing it and the members need not be themselves Noteholders.
Every such committee may elect its chairperson and may make regulations
respecting its quorum, the calling of its meetings, the filling of vacancies
occurring in its number and its procedures generally. Such regulations may
provide that the committee may act at a meeting at which a quorum is present or
may act by minutes signed by the number of members thereof necessary to
constitute a quorum. All acts of any such committee within the authority
delegated to it shall be binding upon all Noteholders. Neither the committee
nor any member thereof shall be liable for any loss arising from or in
connection with any action taken or omitted to be taken by them in good faith;
and
	 
	 	(j)	 	take any other action authorized by this Indenture or directed
under any other Programme Agreement to be taken by Extraordinary Resolution.

	 	(2)	 	Notwithstanding any other provision of this Indenture, (i) no change whatsoever
to (x) the payee of a Note may be made without the consent of the holder of such Note;
(y) the date of maturity of a Note, the principal amount or currency of a Note, the
interest rate or premium payable on a Note, if any, the place of payment of a Note, or
the amount or timing of distributions which are required to be made on a Note, may be
made without the consent of the holders of not less than 95% of the aggregate principal
amount of each Series or Class of Notes affected by such change; or (z) the percentage
specified in the definition of “Extraordinary Resolution” in Section 11.15 for passage
of a resolution may be made without the consent of the holders of not less than 95% of
the aggregate principal amount of

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	 	 	 	each Series or Class adversely affected; and (ii) no
Extraordinary Resolution may be adopted which adversely affects the rights, duties or
immunities under this Indenture or otherwise of the Indenture Trustee without the
express written consent of the Indenture Trustee.

11.13 Powers Exercisable by Extraordinary Resolution of Holders of Series.

	 	(1)	 	The Noteholders of each particular Series shall, in addition to any powers
herein given to holders of Notes generally and to the exclusion of the Noteholders of
all other Series, have the power, exercisable from time to time by Extraordinary
Resolution, to sanction and agree to (and to direct the Indenture Trustee to sanction
and agree, or, as applicable, consent, to) any amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance with, any of the provisions of any Programme Agreement (including this
Indenture or the Related Supplement) to the extent affecting such Notes (as compared to
Notes of another Series) solely or otherwise in a manner or to an extent differing from
that in or to which it affects the rights of the Noteholders of any other affected
Series (including waiving any Related Event of Default), or to sanction the sale,
exchange or other disposition of Related Collateral or any part thereof for such
consideration as may be specified in the Extraordinary Resolution; provided, in each
case, that (i) such amendment, supplement, modification, termination, restatement,
replacement, waiver or consent to or postponement of compliance, or sale, exchange or
other disposition, does not adversely affect the rights or interests of the
Noteholders of any other Series, as determined by the Indenture Trustee relying on
the advice of Counsel; and (ii) where such amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance, would, in the opinion of the Indenture Trustee materially adversely
affect the rights or interests of a Credit Enhancer or any other Specified Creditor
(other than a Noteholder of such Series), the consent of such Credit Enhancer or
other Specified Creditor shall be required.
	 
	 	(2)	 	If any business to be transacted at a meeting of Noteholders, or any action to
be taken or power to be exercised by instrument in writing under Section 11.18, affects
the rights of the Noteholders of one or more Series in the manner described in Section
11.13(1), then:

	 	(a)	 	reference to such fact, indicating each Series so affected,
shall be made in the notice of such meeting and the meeting shall be and is
herein called a “serial meeting”; and
	 
	 	(b)	 	the Noteholders of a Series so affected shall not be bound by
an action taken or power exercised at a meeting of Noteholders generally, or at
a serial meeting or by instrument in writing under Section 11.18 unless, in
addition to compliance with the other provisions of this Article 11, such

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	 	 	 	action is taken or power exercised by resolution of the Noteholders of such
Series as follows:

	 	(i)	 	at such serial meeting:

	 	(A)	 	there is present a quorum
consisting of Noteholders holding either in person or by proxy
not less than 25% of the aggregate principal amount then
outstanding of the Notes of such Series so affected (subject to
the provisions of this Article 11 as to adjourned meetings); and
	 
	 	(B)	 	the resolution is passed by an
Extraordinary Resolution of the Noteholders of such Series so
affected; or

	 	(ii)	 	by a written instrument signed in one or more
counterparts by the holders of not less than 66 2/3% of the aggregate
principal amount then outstanding of the Notes of such Series so
affected.

	 	(3)	 	Notwithstanding any of the provisions hereof, if any business to be transacted
at any meeting, or any action to be taken or power to be exercised by instrument in
writing under Section 11.18, does not in the opinion of the Indenture Trustee
materially adversely affect the rights or interests of the Noteholders of one or more
particular Series, the provisions of this Article 11 shall apply as if the Notes of
such Series were not outstanding and no notice of any such meeting need be given to the
Noteholders of such Series. For greater certainty, but without limiting the generality
of the foregoing:

	 	(a)	 	a proposal to modify or terminate any covenant or agreement
which by its terms is effective only so long as Notes of a particular Series
are outstanding shall be deemed not to adversely affect the rights of the
Noteholders of any other Series; and
	 
	 	(b)	 	the Noteholders of any Series not adversely affected by any
proposal to be submitted to a serial meeting in accordance with Section
11.13(2) shall not have the right to attend at such serial meeting or to vote
on or otherwise approve or reject such proposal.

11.14 Powers Exercisable by Extraordinary Resolution of Holders of Class.

            If any business to be transacted at a meeting, or any action to be taken or power to be
exercised by an instrument in writing under Section 11.13(2), affects the rights relating to a
Class of Notes of a particular Series in a manner or to an extent substantially differing from the manner in or to an extent
differing from that in or to which it affects the rights of the Noteholders of another affected
Class of Notes of such particular Series (as determined by the Indenture Trustee, relying on the
advice of Counsel) then:

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	 	(1)	 	reference to such fact, indicating the Class of Notes so affected, shall be
made in the notice of such meeting and the meeting shall be and is herein called a
“Class meeting”; and
	 
	 	(2)	 	the Noteholders of the Class of Notes so affected shall not be bound by any
action taken or power exercised at a meeting of Noteholders generally or at a serial
meeting or by an instrument in writing under Section 11.18, unless in addition to
compliance with the other provisions of this Article 11, such action is taken or power
exercised by resolution of the Noteholders of such Class of Notes as follows:

	 	(a)	 	at such Class meeting:

	 	(i)	 	there is present a quorum consisting of
Noteholders holding in person or by proxy not less than 25% of the
aggregate principal amount then outstanding of the Notes of such Class
so affected (subject to the provisions of this Article 11 as to
adjourned meetings); and
	 
	 	(ii)	 	the resolution is passed by an Extraordinary
Resolution of the Noteholders of such Class so affected; or

	 	(b)	 	by a written instrument signed in one or more counterparts by
the holders of not less than 66 2/3% of the aggregate principal amount then
outstanding of the Notes of such Class so affected.

11.15 Meaning of “Extraordinary Resolution”.

          “Extraordinary Resolution”, wheresoever used herein, subject as hereinafter in this Article 11
provided, means a resolution proposed to be passed as an Extraordinary Resolution at a meeting of
Noteholders (or the applicable Series or Class of Notes, as the case may be) at which there are
Noteholders present in person or by proxy representing at least 25% of the aggregate principal
amount of the applicable Notes (or applicable Series or Class of Notes, as the case may be) then
outstanding to which such meeting relates and passed by the favourable votes of the holders of not
less than 66 2/3% of the aggregate principal amount of the applicable Notes (or applicable Series
or Class of Notes, as the case may be) represented at the meeting and voted on a poll upon such
resolution. If, at any such meeting, the holders of 25% of the aggregate principal amount of such
Notes (or applicable Series or Class of Notes, as the case may be) then outstanding to which such
meeting relates are not present in person or by proxy within 30 minutes after the time fixed for
holding the meeting, then the meeting, if convened by or on the requisition of Noteholders, will be
dissolved; but in any other case the meeting will stand adjourned to such date, being not less than
15 days nor more than 60 days later and to such place and time as may be appointed by the
chairperson. Not less than 10 days’ notice will be given to Noteholders of the time and place of
such adjourned meeting, in the manner provided in Section 14.3. Such notice will state that at the
adjourned meeting, the Noteholders present in person or by proxy will constitute a quorum but it
will not be necessary to set forth the purposes

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for which the meeting was originally called or any other particulars. At the adjourned meeting, the Noteholders present in person or by proxy will
constitute a quorum and may transact the business for which the meeting was originally convened and
a resolution proposed at such adjourned meeting and passed by the requisite vote as provided in
this Section 11.15 will be an Extraordinary Resolution within the meaning of this Indenture
notwithstanding that they may not represent 25% of the aggregate principal amount of the Notes (or
applicable Series or Class of Notes, as the case may be) then outstanding to which such meeting
relates. Votes on an Extraordinary Resolution will always be given on a poll and no demand for a
poll on an Extraordinary Resolution will be necessary. The Trust shall give notice to the Related
Rating Agencies, the Related Originators and the Related Credit Enhancers of any resolution passed
as an Extraordinary Resolution.

11.16 Powers Cumulative.

          It is hereby declared and agreed that any one or more of the powers or any combination of the
powers in this Indenture stated to be exercisable by the Noteholders by Extraordinary Resolution or
otherwise may be exercised from time to time and the exercise of any one or more of such powers or
any combination of powers from time to time will not be deemed to exhaust the rights of the
Noteholders to exercise the same or any other power or combination of powers thereafter from time
to time.

11.17 Minutes.

          Minutes of all resolutions and proceedings at every meeting as aforesaid will be made and duly
entered in books to be provided for that purpose by the Indenture Trustee at the expense of the
Trust and any such minutes as aforesaid, if signed by the chairperson of the meeting at which such
resolutions were passed or proceedings taken, or by the chairperson of the next succeeding meeting
of Noteholders to which such meeting relates, will be prima facie evidence of the matters therein
stated and, until the contrary is proved, every such meeting, with respect to the proceedings of
which minutes have been made, will be determined to have been duly held and convened, and all
resolutions passed thereat or proceedings taken thereat to have been duly passed and taken.

11.18 Instruments in Writing.

          All actions which may be taken and all powers that may be exercised by the Noteholders at a
meeting held as provided in this Article 11 may also be taken and exercised by a document in
writing signed in one or more counterparts by the holders of the applicable percentage of aggregate
principal amount of Notes (or applicable Series or Class of Notes, as the case may be) then
outstanding. Every such document relating to any or all of such actions or powers shall have the
same force and effect as a resolution duly passed at a meeting of the holders of the Notes (or
applicable Series or Class of Notes, as the case may be), called for purpose of providing such
action or power, and for greater certainty, the term “Extraordinary Resolution” when used herein
shall include any such document signed by the applicable percentage of the aggregate principal
amount of Notes (or applicable Series or Class of Notes, as the case may be) then outstanding.

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11.19 Binding Effect of Resolutions.

           Subject to Sections 11.13 and 11.14, every resolution and every Extraordinary Resolution
passed in accordance with the provisions of this Article 11 at a meeting of Noteholders will be
binding upon all the Noteholders, whether present at or absent from such meeting, and every
instrument in writing signed by Noteholders in accordance with Section 11.18 will be binding upon
all the Noteholders whether signatories thereto or not, and each and every Noteholder and the
Indenture Trustee (subject to the provisions for its indemnity contained in Section 12.3(2)) will
be bound to give effect accordingly to every such resolution, Extraordinary Resolution and
instrument in writing.

ARTICLE 12

THE INDENTURE TRUSTEE

12.1 Trust Indenture Legislation.

	 	(1)	 	In this Article 12, the term “applicable legislation” means the provisions, if
any, of the Trust and Loan Companies Act (Canada) and any other statute of Canada or a
province thereof, and of regulations under any such statute, relating to trust
indentures and to the rights, duties and obligations of trustees under trust indentures
and of entities issuing debt obligations under trust indentures, to the extent that in
the opinion of counsel to the Trust such provisions are at the time in force and
applicable to this Indenture.
	 
	 	(2)	 	If and to the extent that any provision of this Indenture limits, qualifies or
conflicts with a mandatory requirement of applicable legislation, such mandatory
requirement shall prevail.
	 
	 	(3)	 	The Trust and the Indenture Trustee agree that each will at all times in
relation to this Trust Indenture and any action to be taken hereunder, observe and
comply with and be entitled to the benefits of applicable legislation.

12.2 Rights and Duties of Indenture Trustee.

	 	(1)	 	In the exercise of the rights and duties prescribed or conferred by the terms
of this Indenture, the Indenture Trustee will act honestly and in good faith with a
view to the best interests of the Specified Creditors as a whole and exercise that
degree of care, diligence and skill that a reasonably prudent trustee would exercise in
comparable circumstances. The Indenture Trustee shall not be liable for any error in
judgment or for any act done or step taken or omitted by it in good faith or for any
mistake, in fact or law, made in good faith by it or for anything which it may do or
refrain from doing in good faith in connection herewith, except arising out of its own
wilful misconduct or negligence.
	 
	 	(2)	 	Every provision of this Indenture that by its terms relieves the Indenture
Trustee of liability or entitles it to rely upon any evidence submitted to it, is
subject to the

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	 	 	 	provisions of applicable legislation and of Sections12.2(1) and Sections 12.3 and 12.4.

12.3 Conditions Precedent to Indenture Trustee’s Obligation to Act.

	 	(1)	 	The Indenture Trustee shall not be bound to give any notice or do or take any
act, action or proceeding pursuant hereto unless and until it shall have been required
so to do under the terms hereof. The Indenture Trustee shall not be required to take
notice of any Related Event of Default or Related Default hereunder, other than in
payment of any money required by any provision hereof to be paid to it, unless and
until notified in writing of such Related Event of Default or Related Default, which
notice shall distinctly specify the Related Event of Default or Related Default desired
to be brought to the attention of the Indenture Trustee and, in the absence of any such
notice, the Indenture Trustee may for all purposes of this Indenture conclusively
assume that the Trust is not in default hereunder and that no Related Event of Default
or Related Default has occurred.
	 
	 	(2)	 	The Indenture Trustee will not be bound to do, observe or perform or see to the
observance or performance by the Trust of any of the obligations herein imposed upon
the Trust or of the covenants on the part of the Trust herein contained, nor to take or
continue any steps to enforce the security hereof, nor in any way to supervise or
interfere with any of the activities of the Trust, unless and until the Related
Obligations Secured have become due and payable pursuant to Section 8.2 and then only
after it has been indemnified and provided with sufficient funds, in each case, to its
reasonable satisfaction against all actions, proceedings, claims and demands to which
it may render itself liable and all costs, charges, damages and expenses which it may
incur by so doing.
	 
	 	(3)	 	None of the provisions contained in this Indenture shall require the Indenture
Trustee to expend or risk its own funds or otherwise incur financial liability in the
performance of any of its duties or in the exercise of any of its rights or powers
unless indemnified and funded as aforesaid or to give any bond or security in respect
of the trust and powers of this Indenture.
	 
	 	(4)	 	The Indenture Trustee may, before commencing or at any time during the
continuance of any such act, action or proceeding, require the Noteholders at whose
instance it is acting to deposit with the Indenture Trustee the Notes held by them, for
which Notes the Indenture Trustee shall issue receipts.

12.4 Experts and Advisors; Remuneration.

	 	(1)	 	The Indenture Trustee may, in the exercise of all or any of the trusts, powers
and discretions vested in it hereunder act by its officers, representatives or
employees. The Indenture Trustee may delegate to any Person the performance of any of
the trusts and powers vested in it by this Indenture, and any delegation may be made

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	 	 	 	upon terms and conditions and subject to regulations as the Indenture Trustee may
think to be in the best interests of the Specified Creditors as a whole.

	 	(2)	 	The Indenture Trustee may rely and act upon any statement, report or opinion
prepared by or any advice received from the Financial Services Agent, the Financial
Services Sub-Agent or from the auditors, Counsel or other professional advisors or
experts of the Indenture Trustee, the Financial Services Sub-Agent or the Financial
Services Agent and shall not be responsible or held liable for any loss or damage
resulting from so relying or acting if the Indenture Trustee acted in good faith in
relying upon the advice received. The Indenture Trustee is entitled to rely and act
upon the genuineness and authenticity of any writing, paper, document or instrument
submitted to it by any Person, not only as to its due execution and the validity and
the effectiveness of its provisions but also as to the truth and acceptability of any
information therein contained, which it in good faith believes to be genuine and what
it purports to be.
	 
	 	(3)	 	The Indenture Trustee may, but is not required to, employ or consult any agents
or other assistants (including, without limitation, Counsel, accountants, appraisers,
other experts, agencies and advisors) as it may reasonably require for the proper
determination and discharge of its duties hereunder or any agreement entered into in
connection herewith, and will not be responsible for any negligence or wilful
misconduct on the part of any agents or other assistants or for any liability incurred
by any Person as a result of not appointing such agents or other assistants, provided
that in appointing such agents or other assistants it has acted in accordance with
Section 12.2(1), and may pay reasonable remuneration for all services performed for it
in the discharge of the trusts hereof without taxation of any costs or fees of any
Counsel, and the Indenture Trustee will be entitled to receive reasonable remuneration
for all services performed by it in the discharge of the trusts hereof and compensation
for all disbursements, costs, liabilities and expenses made or incurred by it in the
discharge of its duties hereunder and in the management of the trusts hereof. All such
remuneration, disbursements, costs, liabilities and expenses and all remuneration and
expenses incidental to the preparation, execution and recording of this Indenture, any
Related Supplement or any instrument ancillary or supplemental hereto and to the
creation of the Notes, whether done by or owing to the Indenture Trustee or done or
incurred at the request of the Indenture Trustee or the Trust, will bear interest at a
rate per annum equal to the then current rate of interest charged by the Indenture
Trustee from time to time so long as the same is commercially reasonable, from the date
of invoice in the case of Indenture Trustee’s remuneration until the date of
reimbursement and will (together with such interest) be payable by the Trust upon
demand and will until paid form part of the Obligations Secured entitled to the
security hereby constituted and will be payable out of any funds coming into the
possession of the Indenture Trustee in accordance with the terms of this Indenture and
the Related Supplement.

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	 	(4)	 	Wherever by this Indenture the Indenture Trustee is authorized to employ or
consult Counsel and to pay costs secured by the security constituted hereby, the costs
need not be taxed unless the Indenture Trustee deems it necessary to tax the same but
may be agreed to by the Indenture Trustee and paid as a lump sum. No costs paid by the
Indenture Trustee pursuant to this Section 12.4(4) in good faith will be disallowed in
the taking of any accounts by reason only of the fact that the costs are greater than
they might have been if taxed, or by reason of their not being taxed, but the costs so
paid by the Indenture Trustee will, if not improperly incurred by it, be allowed and
paid to the Indenture Trustee and will until paid form part of the Obligations Secured
entitled to the security created by the applicable Related Supplement and will be
payable out of any funds coming into the possession of the Indenture Trustee in
accordance with the terms of this Indenture and such Related Supplement. Any Counsel
employed or consulted by the Indenture Trustee may be, but need not be, counsel for the
Trust.

12.5 Evidence of Compliance, Certificates of the Trust and Written Orders.

	 	(1)	 	The Trust will furnish, on or before March 31 of each year, to the Indenture
Trustee:

	 	(a)	 	a Certificate of the Trust stating that the conditions of this
Indenture with respect to the satisfaction and discharge of this Indenture and
each Related Supplement have been complied with in accordance with the terms of
this Indenture or, to the extent not complied with, outlining such
non-compliance and what the Trust proposes to do with respect thereto; and
	 
	 	(b)	 	a Certificate of the Trust stating the balance outstanding of
the Obligations Secured, including, without limitation, the particulars and
amounts of any Notes outstanding as at December 31 of the previous year.

	 	(2)	 	The Certificates of the Trust referred to in Section 12.5(1) shall include a
statement by the individual in his stated capacity certifying that he or she has read
and understands the conditions of the Indenture and each Related Supplement relating to
the matter in question and declaring that he or she has made such examinations or
investigations as he or she believes necessary to enable him or her to make the
statements or give the opinions contained or expressed therein.
	 
	 	(3)	 	Except where some other mode of proof is required by this Indenture, the
Indenture Trustee will be at liberty to accept a Certificate of the Trust (i) as to any
statement of facts as conclusive evidence of the truth of the statement; (ii) as to any
particular act or transaction or step or thing which, in the opinion of the individual
or officer so certifying, is expedient, as sufficient evidence that the act,
transaction, step or thing is expedient; and (iii) as to any expenditure made or
indebtedness incurred by the Trust or any successor trustee to the Trust as sufficient
evidence that the expenditure or indebtedness was made or incurred for

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	 	 	 	the purpose set forth in the Certificate of the Trust, and, in each case, the
Indenture Trustee will be in no way bound to call for further evidence or be
responsible for any loss that may be occasioned by its failing to do so. However,
the Indenture Trustee may cause to be made any independent investigations as it may
reasonably require and the expense thereof (together with interest at a rate per
annum equal to the then current rate of interest charged by the Indenture Trustee
from time to time so long as the same is commercially reasonable, from the date of
the Indenture Trustee’s expenditure to the date of its reimbursement) will be paid
by the Trust upon demand and will until paid by the Trust form part of the
Obligations Secured entitled to the security constituted by the applicable Related
Supplement and will be payable out of any funds coming into the possession of the
Indenture Trustee in accordance with the terms of this Indenture and such Related
Supplement. If, as a result of any independent investigation, the Indenture Trustee
is not satisfied as to any matter or thing set forth in the Certificate of the
Trust, the Indenture Trustee may refuse to act thereon.

	 	(4)	 	Wherever applicable legislation requires that evidence be in the form of a
statutory declaration, the Indenture Trustee may accept such statutory declaration in
lieu of a Certificate of the Trust.
	 
	 	(5)	 	The Indenture Trustee will not be bound to act in accordance with any order,
direction or request of the Trust, the Issuer Trustee, the Financial Services Sub-Agent
or the Financial Services Agent until a Written Order has been delivered to the
Indenture Trustee, and the Indenture Trustee will be fully empowered to act and will be
fully protected from all liability in acting upon any instruments purporting to be
Written Orders and believed by the Indenture Trustee to be genuine.
	 
	 	(6)	 	The regularity and validity of all acts, consents, requests and directions of
the Trust will, for the protection of the Indenture Trustee, be deemed conclusively
proved by a Certificate of the Trust or a Written Order, as the case may be.

12.6 Instruments Held By Indenture Trustee.

           The Indenture Trustee will be at liberty to place all instruments or other securities or deeds
or other documents of title comprising part of the Collateral in safekeeping with any Canadian
chartered bank or trust company (which may be an Affiliate of the Indenture Trustee) and the
Indenture Trustee will not be responsible for any loss incurred in connection with any such
placement. The Indenture Trustee may pay out of any funds in the possession of the Indenture
Trustee all sums required to be paid on account of or in respect of any such placing.

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12.7 Protection of Indenture Trustee.

              By way of supplement to any law for the time being relating to trustees, it is expressly
declared and agreed as follows:

	 	(a)	 	the Indenture Trustee will not be bound to give notice to any
Person of the execution hereof or of the charge of this Indenture unless and
until any of the security hereby constituted has become enforceable and the
Indenture Trustee has determined or become obliged to enforce the same;
	 
	 	(b)	 	the Indenture Trustee will not be liable for or by reason of
any failure or defect of title to or any lien, charge or encumbrance upon any
of the Collateral or for or by reason of the statements or implications of fact
or law contained in or arising out of anything contained in this Indenture or
in the Notes or be required to verify the same, but all statements or
implications will be deemed to have been made by the Trust only, and it will
not be the duty of the Indenture Trustee, except as herein otherwise
specifically provided, to see to or require evidence of the registration or
filing or renewal of this Indenture, or any other indenture or writing by way
of mortgage, pledge, charge, transfer or assignment of or upon any of the
Collateral or any part thereof or upon any other property of the Trust or to
procure any mortgage, pledge or charge or other additional instrument of
further assurance or to do any other act for the continuance of the security
constituted hereby or for giving notice of the existence of any of the security
constituted hereby or for extending or supplementing the same, or to insure or
keep insured or require evidence of insurance against loss or damage by fire or
otherwise the Collateral or any part thereof, or to keep itself informed or
advised as to the payment by the Trust of any taxes or assessments or premiums
of insurance or other payments which the Trust should make or to require
payments to be made;
	 
	 	(c)	 	the Indenture Trustee will not be responsible for any error
made or act done by it resulting from reliance upon the signature of any Person
on behalf of the Trust or of any Person on whose signature the Indenture
Trustee may be called upon or entitled to act or refrain from acting under this
Indenture;
	 
	 	(d)	 	the Indenture Trustee will not incur any liability or
responsibility whatsoever in consequence of permitting or suffering the Trust
to retain or to be in possession of any part of any of the Collateral and to
use and enjoy the same unless herein expressly otherwise provided; nor will the
Indenture Trustee be or become responsible or liable for any destruction,
deterioration, loss, injury or damage which may occur or be done by the Trust
or by any other Person to any of the Collateral, or be in any way responsible
for the consequence of any breach on the part of the Trust of

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	 	 	 	any of the covenants herein contained or of any acts of servants or agents
of the Trust;

	 	(e)	 	the Indenture Trustee may buy, sell, lend upon and deal in the
Notes and generally contract and enter into financial transactions with the
Trust, the Financial Services Agent, the Financial Services Sub-Agent or the
Issuer Trustee without being liable to account for any profits made thereby;
	 
	 	(f)	 	the Indenture Trustee shall not be liable for or by reason of
any statements of fact or recital in this Indenture or in the Notes or required
to verify the same, but all said statements or recitals are and shall be deemed
to be made by the Trust;
	 
	 	(g)	 	subject to Section 12.2(1), no property or assets of the
Indenture Trustee owned in its personal capacity will be subject to levy,
execution or other enforcement procedure arising under or in connection with
this Indenture;
	 
	 	(h)	 	the Indenture Trustee shall not incur any liability or
responsibility whatsoever or be in any way responsible for the consequences of
any breach on the part of the Trust of any of the representations, warranties
or covenants herein contained or of any acts of the agents or servants of the
Trust;
	 
	 	(i)	 	the Trust hereby indemnifies and saves harmless the Indenture
Trustee, its directors, officers, representatives, employees and agents from
and against any and all claims, demands, losses, actions, causes of action,
costs, charges, expenses, damages, liabilities and obligations whatsoever,
including without limitation, legal fees and disbursements on a solicitor and
his own client basis and costs and expenses incurred in connection with
enforcement of this indemnity, which the Indenture Trustee or any of the
foregoing Persons may suffer or incur, whether at law or in equity, in any way
caused by or arising, directly, or indirectly, in respect of anything done,
omitted to be done or permitted to be done by the Indenture Trustee or any of
the foregoing Persons in or about or in relation to the execution of the
Indenture Trustee’s duties as Indenture Trustee including, without limitation,
anything done or omitted to be done in relation to the registration,
perfection, release or discharge of security; provided that the foregoing
indemnification shall not apply in respect of anything done, omitted to be done
or permitted to be done by the Indenture Trustee arising from or in connection
with the wilful misconduct or negligence of the Indenture Trustee, its officers
or employees. The Trust hereby agrees that the Indenture Trustee is the
trustee for its directors, officers, representatives, employees and agents for
the purpose of the foregoing indemnification and that this indemnification
shall survive the termination or discharge of this Indenture and the
resignation or replacement of the Indenture Trustee;

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	 	(j)	 	the Indenture Trustee shall not be required to give security
for the execution of the trusts or its conduct or administration under this
Indenture; and
	 
	 	(k)	 	the Indenture Trustee will not be required to disburse money
according to this Indenture except to the extent that money has been deposited
with it.

12.8 Resignation or Removal of Indenture Trustee; Conflict of Interest.

	 	(1)	 	The Indenture Trustee may resign its trust upon giving 60 days’ prior notice in
writing to the Trust, the Financial Services Agent, the Financial Services Sub-Agent
and the Rating Agencies or such shorter notice as the Trust and the Rating Agencies may
accept as sufficient, provided that no such voluntary resignation shall be effective
until a replacement Indenture Trustee acceptable to the Trust and the Rating Agencies,
acting reasonably, has been appointed and has executed a written agreement whereby such
replacement Indenture Trustee agrees to assume the obligations of the Indenture Trustee
hereunder. The Indenture Trustee shall resign if a material conflict of interest
arises in its role as a trustee under this Indenture that is not eliminated within 90
days after the Indenture Trustee becomes aware that it has such a material conflict of
interest; provided that no such resignation shall be effective until a replacement
Indenture Trustee acceptable to the Trust and that satisfies the Rating Agency
Condition has been appointed and has executed a written agreement whereby such
replacement Indenture Trustee agrees to assume the obligations of the Indenture Trustee
hereunder. Forthwith after the Indenture Trustee becomes aware that it has a material
conflict of interest it shall provide the Trust, the Financial Services Agent, the
Financial Services Sub-Agent and the Rating Agencies with written notice of the nature
of that conflict. Upon resignation in accordance with this Section 12.8(1) or removal
in accordance with Section 12.8(2), the Indenture Trustee shall be discharged from all
further duties under this Indenture. If, notwithstanding the foregoing provisions of
this Section 12.8(1), the Indenture Trustee has such a material conflict of interest,
the validity and enforceability of this Indenture and of the Notes issued hereunder
shall not be affected in any manner whatsoever by reason only of the existence of such
material conflict of interest. If the Indenture Trustee contravenes the foregoing
provisions of this Section 12.8(1), any interested party may apply to the Ontario
Superior Court of Justice for an order that the Indenture Trustee be replaced as
trustee hereunder. The Indenture Trustee represents to the Trust and to each
Noteholder that at the time of the execution and delivery hereof no material conflict
of interest exists in the Indenture Trustee’s role as a fiduciary hereunder.
	 
	 	(2)	 	The Noteholders of all outstanding Series and Classes may at any time, by
Extraordinary Resolution, remove the Indenture Trustee and appoint a replacement
Indenture Trustee.

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	 	(3)	 	In the event of the Indenture Trustee resigning or being removed or being
dissolved or wound-up, becoming bankrupt, going into liquidation or otherwise becoming
incapable of acting hereunder, the Trust shall forthwith appoint a replacement
Indenture Trustee that satisfies the Rating Agency Condition unless a replacement
Indenture Trustee has already been appointed by the Noteholders pursuant to Section
12.8(2); failing which the retiring Indenture Trustee, at the expense of the Trust, or
any Specified Creditor may apply to a Judge of the Ontario Superior Court of Justice,
on such notice as such Judge may direct, for the appointment of a replacement Indenture
Trustee. Any replacement Indenture Trustee so appointed by the Issuer Trustee or by
the Court shall be subject to removal by the Noteholders. Any replacement Indenture
Trustee appointed under any provision of this Section 12.8 shall be a corporation
authorized to carry on a trust business as contemplated hereby in each of the provinces
and territories of Canada.
	 
	 	(4)	 	The expense of any act, document or other instrument or thing required under
this Section 12.8 will be satisfied from the Asset Interests according to their Related
Proportionate Shares.
	 
	 	(5)	 	Subject to Section 12.8(1), any replacement Indenture Trustee shall, forthwith
upon appointment, become vested with all the estates, properties, rights, powers and
trusts of its predecessor in the trusts hereunder, with like effect as if originally
named as Indenture Trustee herein. Nevertheless, upon the written request of the
replacement Indenture Trustee or of the Trust, the Indenture Trustee ceasing to act
shall, upon payment of its outstanding remuneration and expenses, execute and deliver
an instrument assigning and transferring to such replacement Indenture Trustee, upon
the trusts herein expressed, all the rights, powers and trusts of the Indenture Trustee
so ceasing to act, and shall duly assign, transfer and deliver all property and money
held by such Indenture Trustee to the replacement Indenture Trustee so appointed in its
place. Should any deed, conveyance or instrument in writing from the Trust be required
by any replacement Indenture Trustee for more fully and certainly vesting in and
confirming to it such estates, properties, rights, powers and trusts, then any and all
such deeds, conveyances and instruments in writing shall, on the request of the
replacement Indenture Trustee, be made, executed, acknowledged and delivered by the
Trust.

12.9 Authority to Carry on Business.

           The Indenture Trustee represents to the Trust that at the date of execution and delivery by it
of this Indenture it is authorized to carry on the business of a trust company in each of the
provinces and territories of Canada. If, notwithstanding the provisions of this Section 12.9, the
Indenture Trustee ceases to be so authorized to carry on business, the validity and enforceability
of this Indenture and the Notes issued hereunder shall not be affected in any manner whatsoever by
reason only of such event but the Indenture Trustee shall, within 90 days after ceasing to be
authorized to carry on a trust business as contemplated hereby in each of the provinces and
territories of Canada, either become so authorized or resign in the manner and

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with the effect specified in Section 12.8 and subject to the provisions thereof in respect of
the date on which such resignation will be effective.

12.10 Power of Attorney for Quebec Registrations.

	 	(1)	 	The Indenture Trustee is hereby appointed and accepts its appointment as fonde
de pouvoir (power of attorney) of all present and future Specified Creditors as
contemplated by article 2692 of the Civil Code of Quebec to enter into, to take and to
hold, on behalf of and for the benefit of each of the Specified Creditors, any hypothec
granted to secure payment of bonds or other titles of indebtedness issued to secure or
evidence the Obligations Secured, and to exercise such powers and duties which are
conferred upon the Indenture Trustee under any deed of hypothec or herein or under any
other agreement. The Indenture Trustee is hereby appointed and accepts such
appointment as the bondholder and mandatary for the Specified Creditors with respect to
bonds or other titles of indebtedness issued and pledged in favour of the Indenture
Trustee, for the benefit of the Specified Creditors, to secure or evidence the
Obligations Secured. Any Person who becomes a Specified Creditor shall be deemed to
have consented to and confirmed the Indenture Trustee as fonde de pouvoir and to have
ratified as of the date such Person becomes a Specified Creditor all actions taken by
the fonde de pouvoir. For greater certainty, the purchase of any Note by any
Noteholder shall constitute ratification by such Noteholder of the power of attorney of
the Indenture Trustee constituted hereunder and the incurrence of any debt by the Trust
with the other Specified Creditors pursuant to the applicable Programme Agreement shall
constitute such ratification by such Specified Creditor of such power of attorney
constituted hereunder. The execution by the Indenture Trustee, acting as fonde de
pouvoir and bondholder and mandatary, prior to the execution of this Indenture of any
deeds of hypothec, pledges or other similar documents is hereby ratified and confirmed.
Notwithstanding the provisions of Section 32 of An Act respecting the special powers
of legal persons (Quebec), the Indenture Trustee may acquire and be the holder of any
bond issued by the Trust (i.e. the fonde de pouvoir may acquire and hold the first bond
issued under any deed of hypothec by the Trust). The Indenture Trustee, acting as
fonde de pouvoir, shall have the same rights, powers, immunities, indemnities and
exclusions from liability as are prescribed in favour of the Indenture Trustee in this
Indenture, which shall apply mutatis mutandis. Without limitation, the provisions of
the Indenture regarding the resignation and appointment of a successor to the Indenture
Trustee shall apply mutatis mutandis to the resignation and appointment of a successor
to the Indenture Trustee acting as fondé de pouvoir.
	 
	 	(2)	 	The Indenture Trustee hereby appoints the Trust and its duly authorized agents
and their successors to be its attorney in the Province of Quebec specifically for the
purposes of doing only those things which the Trust may lawfully do by attorney for the
purpose of (i) discharging, releasing, reassigning, retroceding, waiving or
subordinating any Security Interest in respect of any of the Asset

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	 	 	 	Interests forming part of the Collateral where full or partial payment of such Asset
Interest is made to an Originator or Servicer in the ordinary course of business and
such payment would entitle the obligor of such account receivable to the
registration of a full or partial discharge pursuant to article 3065 of the Civil
Code of Quebec; and (ii) consenting to the discharge, release, reassignment,
retrocession, waiver or subordination of any Security Interest in respect of any
personal or moveable real rights not forming part of the Collateral including in the
case of both (i) and (ii) endorsing the Indenture Trustee’s name on any consents,
filings, registrations or other documents in furtherance thereof.

12.11 Sub-attorney for Quebec Discharges.

            The Indenture Trustee hereby authorizes the Trust and its duly authorized agents to appoint
any other Person as sub-attorney and to delegate its powers pursuant to Section 12.10 provided that
the Trust is solely responsible for the acts and omissions of any of its duly authorized agents and
their successors, agents and sub-attorneys who have been delegated powers under Section 12.10.

12.12 Revocation of Appointment.

            The appointment of the Trust pursuant to Section 12.10(2) may be revoked by the Indenture
Trustee at any time in respect of Related Collateral by notice in writing to the Trust upon a
Significant Event having occurred in respect of Related Programme Agreements, but only so long as
it is continuing, and shall be automatically revoked in respect of Related Collateral upon a
Related Event of Default.

12.13 Acknowledgement by Specified Creditors.

            The Specified Creditors shall be deemed to have consented to and confirmed the Indenture
Trustee’s appointment of the Trust and its duly authorized agents as its attorney in accordance
with Section 12.10(2) and any subdelegation as contemplated by Section 12.11.

12.14 Successor Indenture Trustee By Merger.

            If the Indenture Trustee consolidates with, amalgamates, merges or converts into, or transfers
all or substantially all its corporate trust business or assets to, another corporation, the
resulting successor or transferee corporation without any further act, formality or instrument
shall be the successor Indenture Trustee under this Indenture and each other Programme Agreement to
which the Indenture Trustee is a party; provided, that such corporation shall be otherwise
qualified and eligible under Section 12.15. The Indenture Trustee shall provide the Rating
Agencies and the Trust written notice of any such transaction.

            If at the time such successor(s) by amalgamation, merger, conversion, consolidation or
transfer to the Indenture Trustee shall succeed to the trusts created by this Indenture any of the
Notes shall have been certified but not delivered, any such successor to the Indenture Trustee may
adopt the certificate of authentication of any predecessor trustee, and

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deliver such Notes so certified; and if at that time any of the Notes shall not have been
certified, any successor to the Indenture Trustee may certify such Notes either in the name of any
predecessor trustee hereunder or in the name of the successor to the Indenture Trustee; and in all
such cases such certificates of authentication shall have the full force and effect to the same
extent given to the certificate of authentication of the Indenture Trustee anywhere in the Notes or
in this Indenture.

12.15 Eligibility; Disqualification.

          An Indenture Trustee must at all times (a) be a corporation organized under the laws of Canada
or any province thereof, (b) be licensed, qualified or authorized to carry on business in all
provinces and territories of Canada, (c) be authorized under such laws to exercise corporate trust
powers, (d) be subject to supervision or examination by federal or provincial authority, (e) (i) if
there is no Rating Agency then rating any Notes, (x) have risk-based capital of at least
$50,000,000 or, in the case of an entity that is not subject to risk-based capital adequacy
requirements, have a combined capital and surplus of at least $50,000,000 or (y) be a wholly owned
subsidiary of a Canadian or United States entity which has risk-based capital of at least
$50,000,000 or, in the case of an entity that is not subject to risk-based capital adequacy
requirements, have a combined capital and surplus of at least $50,000,000, and have long-term
unsecured debt obligations that are rated by two or more rating agencies in a generic rating
category which denotes investment grade, or (ii) if any Rating Agency is then rating any Notes,
satisfy the Rating Agency Condition, (f) (i) be a wholly-owned direct or indirect subsidiary of a
Canadian chartered bank listed in Schedule I of the Bank Act (Canada), a trust company organized
under the Trust and Loan Companies Act (Canada) or a United States banking or trust institution or
(ii) be wholly-owned directly or indirectly by any such Person, and (g) be a resident of Canada for
purposes of the ITA.

12.16 Acceptance of Trusts by Indenture Trustee.

          The Indenture Trustee hereby accepts the trusts in this Indenture declared and provided and
agrees to perform the same upon the terms and conditions herein set forth.

12.17 Confidentiality.

          At all times (including, without limitation, at any time after the Indenture Trustee should
resign or be discharged from the trusts and powers reposed in or conferred on it by this
Indenture), the Indenture Trustee (or the trustee so resigning and being discharged, as the case
may be) will treat as confidential all information relating to the Trust, the Trust Property and
the transactions contemplated by the Programme Agreements obtained by it in its capacity as
Indenture Trustee. The Indenture Trustee shall have the right to disclose any information
disclosed or released to it if in the opinion of legal counsel to the Indenture Trustee it is
required to disclose such information under any applicable laws, court order or administrative
directions; provided that it shall, as soon as reasonably practical in the circumstances, give
written notice to the Trust of its intention to so disclose such information. The Indenture
Trustee shall not be responsible or liable to any party for any loss or damage arising out of or in
any way sustained or incurred or in any way relating to such disclosure.

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ARTICLE 13

SUPPLEMENTAL INDENTURES AND AMENDMENTS

13.1 Supplemental Indentures.

	 	(1)	 	From time to time, the Indenture Trustee and the Trust may, in addition to any
Related Supplements, without the consent of the Specified Creditors, make, execute,
acknowledge and deliver deeds or indentures supplemental hereto which thereafter will
form part hereof, for any one or more of the following purposes:

	 	(a)	 	mortgaging, pledging, assuring, confirming or transferring to,
or vesting in, the Indenture Trustee, or charging in favour of the Indenture
Trustee, any property now owned or hereafter acquired by the Trust, and
providing that the same will become and be part of any Related Collateral;
	 
	 	(b)	 	correcting or amplifying the description of any property in
which security is hereby specifically granted or intended so to be;
	 
	 	(c)	 	adding to the limitations or restrictions herein specified
further limitations or restrictions thereafter to be observed upon the amount
of the issue of Notes hereunder or upon the dealing with the property of the
Trust, or upon the release of property forming part of the Collateral; provided
that, in each case, the Indenture Trustee is of the opinion that the further
limitations or restrictions will not materially adversely affect the rights or
interests of the Specified Creditors;
	 
	 	(d)	 	adding to the covenants of the Trust herein contained for the
protection of the Specified Creditors or providing for Related Events of
Default in addition to those herein specified;
	 
	 	(e)	 	making such provisions not inconsistent with this Indenture as
may be necessary or desirable with respect to matters or questions arising
hereunder, including the making of any modifications in the form of the Notes
which do not affect the substance thereof and which, in the opinion of the
Indenture Trustee, will not materially adversely affect the rights or interests
of the Specified Creditors;
	 
	 	(f)	 	evidencing the succession, or successive successions, of any
other Person to the Trust or the Issuer Trustee and the covenants of and
obligations assumed by any such successor in accordance with the provisions of
this Indenture;
	 
	 	(g)	 	providing for altering the provisions of this Indenture in
respect of the issuance, certification, exchange or transfer of Notes;

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	 	(h)	 	giving effect to any Extraordinary Resolution passed as
provided for in Article 11;
	 
	 	(i)	 	subject to satisfaction of the Rating Agency Condition in
respect of each Series then outstanding, any other purposes considered
appropriate by the Indenture Trustee and which, in the opinion of the Indenture
Trustee will not materially adversely affect the rights and interests of the
Specified Creditors;

provided, however, that the Indenture Trustee may, in its sole discretion, decline
to enter into any such supplemental indenture which adversely affects its own
rights, duties or immunities under this Indenture or otherwise at such time when it
becomes operative.

	 	(2)	 	Subject to Section 11.12(2), amendments to this Indenture for any purpose other
than specified above may be made by the Indenture Trustee and the Trust upon (a)
satisfaction of the Rating Agency Condition in respect of each Series then outstanding
and (b) approval by Extraordinary Resolution of the Noteholders (or if only some Series
or Classes of Notes are affected thereby, the applicable Series or Class of Notes).

13.2 Automatic Amendment.

            Upon the Issuer Trustee ceasing to be the trustee of the Trust, this Indenture will be
automatically amended to delete any reference to the name of the trustee so ceasing to be the
trustee of the Trust and to substitute therefor the name or names of the successor trustee or
trustees as the continuing trustee or trustees of the Trust, as the case may be.

13.3 Amendments to Programme Agreements.

	 	(1)	 	Subject to Section 13.1, the Indenture Trustee will from time to time, upon
receipt of a Written Order, enter into or consent to, as applicable, any proposed
amendment, supplementation, modification, restatement, termination, replacement, waiver
or consent of or with respect to or postponement of compliance with any term of any of
the Programme Agreements, which action may be taken or made without the necessity of
obtaining the consent of the Related Specified Creditors with respect to any and all
Series if the Trust has delivered a Certificate of the Trust certifying that such
amendment, supplementation, modification, restatement, termination, replacement, waiver
or consent or postponement could not reasonably be expected to, individually or in the
aggregate, materially adversely affect the rights or interests of the holders of the
Notes then outstanding of any and all Series and the Rating Agency Condition in respect
of any affected Series (or Class thereof) has been satisfied; provided further that if,
in the opinion of the Indenture Trustee such amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance with would adversely affect the rights

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	 	 	 	or interests of the Noteholders (or any Series or Class thereof), the Indenture
Trustee will not enter into or consent to, as applicable, such amendment,
supplement, modification, termination, restatement, replacement, waiver or consent
to or postponement without, subject to Sections 11.12(2) and 13.3(2), the approval
by Extraordinary Resolution of the Noteholders (or applicable Series or Class) that
would be adversely affected. Notwithstanding the foregoing, the Indenture Trustee
may decline to enter into or consent to, as applicable, a proposed amendment,
supplement, modification, termination, restatement, replacement, waiver or consent
to or postponement of compliance that adversely affects its own rights, duties or
immunities under this Indenture or otherwise.

	 	(2)	 	Notwithstanding anything in Section 13.3(1) to the contrary, no proposed
amendment, supplement, modification, termination, restatement, replacement, waiver or
consent to or postponement of compliance with, any provision of any Programme Agreement
may be taken or made pursuant to Section 13.3(1) without the consent of any Related
Specified Creditor where such Related Specified Creditor’s consent is expressly
required under the Related Supplement.
	 
	 	(3)	 	It shall not be necessary for the consent of the Noteholders (or of any Series
or Class of Notes) under this Section 13.3 or, unless expressly provided in a Related
Supplement, the other Related Specified Creditors with respect to any such Notes (or
Series or Class of Notes) whose consent is required as contemplated in Section 13.3(2),
to approve the particular form of any proposed amendment, supplement, modification,
termination, restatement, replacement, waiver or consent to or postponement of
compliance but it shall be sufficient if such consent shall approve the substance
thereof. The manner of obtaining such consent and of evidencing the authorization of
the execution thereof shall be subject to such reasonable requirements as the Indenture
Trustee, relying upon the advice of Counsel, may prescribe from time to time.

13.4 Determination of Material Adverse Effect.

            At any time that the Indenture Trustee is required to make a determination as to whether any
amendment, supplementation, modification, restatement, termination, replacement, waiver or consent
of or with respect to or postponement of compliance with any term of this Indenture or any of the
Programme Agreements would (or would in the opinion of the Indenture Trustee) materially adversely
affect the rights or interests of any Specified Creditor it may, without limitation, conclusively
rely upon, (i) if the matter relates to the rights or interests of any Specified Creditor other
than the Noteholders, the written consent of such affected Specified Creditor; and (ii) in any
event, a favourable opinion of Counsel, which opinion may rely on such matters as Counsel considers
appropriate and reasonable in the circumstances. The receipt of any of the foregoing shall, again,
without limitation, be conclusive proof that the respective Specified Creditors will not be
materially adversely affected by the amendment or waiver to the Programme Agreements.

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ARTICLE 14

NOTICES

14.1 Notice to Trust and Issuer Trustee.

          Any notice, document or other communication required or permitted to be given or delivered to
the Trust or the Issuer Trustee hereunder will be in writing and will be valid and effective if
delivered or sent by facsimile transmission (with receipt confirmed) or by electronic mail, to the
Trust at:

	 	 	 	 	 	 	 
	 	To the Trust:
	 
	 

	 	 	 	Fleet Leasing Receivables Trust	 	 
	 

	 	 	 	c/o BNY Trust Company of Canada	 	 
	 

	 	 	 	4 King Street West, Suite 1101	 	 
	 

	 	 	 	Toronto, ON M5H 1B6	 	 
	 

	 	 	 	CANADA	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Facsimile No.: 416-360-1711	 	 
	 

	 	 	 	Attention:        George Bragg	 	 
	 

	 	 	 	Email:
            george.bragg@bnymellon.com	 	 
	 
	 	 	 	 	 	 
	 	with a copy to the Financial Services Agent:
	 
	 	 	 	 	 	 
	 

	 	 	 	PHH Vehicle Management Services Inc.	 	 
	 

	 	 	 	2233 Argentia Road	 	 
	 

	 	 	 	Suite 400	 	 
	 

	 	 	 	Mississauga ON L5N2X7	 	 
	 

	 	 	 	CANADA	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Facsimile No.: 905-286-5363	 	 
	 

	 	 	 	Attention:        Mark Johnson	 	 
	 

	 	 	 	Email:
             mark.johnson@phhmail.com	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	With a copy to	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	PHH Arval	 	 
	 

	 	 	 	940 Ridgebrook Road	 	 
	 

	 	 	 	Sparks, MD 21152-9390	 	 
	 

	 	 	 	USA	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	Facsimile No.:  410-771-2530	 	 
	 

	 	 	 	Attention:        Joseph Weikel	 	 
	 

	 	 	 	Email:
           
Joseph.weikel@phh.com	 	 

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     with a copy to the Financial Services Sub-Agent:

	 	 	 
	 

	 	BNY Trust Company of Canada
	 

	 	4 King Street West, Suite 1101
	 

	 	Toronto, ON M5H 1B6
	 

	 	CANADA
	 
	 	 
	 

	 	Facsimile No.: 416-360-1711
	 

	 	Attention:        George Bragg
	 

	 	Email:
          
 george.bragg@bnymellon.com

and such notice shall be deemed to have been received, where given by delivery, on the day of
delivery, and, where sent by facsimile or by electronic mail, on the day of transmittal thereof if
given prior to 5:00 p.m. (Toronto time) and on the following Business Day if transmitted on or
after 5:00 p.m. (Toronto time). Notwithstanding the foregoing, the Trust may, in its discretion,
agree to accept notices and other communications to it hereunder by other means pursuant to
procedures approved by it; provided that approval of such procedures may be limited to particular
notices or communications.

14.2 Notice to Indenture Trustee.

            Any notice, document or other communication required or permitted to be given or delivered to
the Indenture Trustee hereunder will be in writing and will be valid and effective if delivered or
sent by facsimile transmission (with receipt confirmed) or by electronic mail, to the Indenture
Trustee at:

	 	 	 
	 

	 	Computershare Trust Company of Canada
	 

	 	100 University Avenue
	 

	 	8th floor
	 

	 	Toronto, Ontario
	 

	 	M5J 2Y1
	 
	 	 
	 

	 	Facsimile No.: 416-981-9777
	 

	 	Attention:        Manager, Corporate Trust
	 

	 	Email:
            corporatetrust.toronto@computershare.com

and such notice shall be deemed to have been received, where given by delivery, on the day of
delivery, and, where sent by facsimile or by electronic mail, on the day of transmittal thereof if
given prior to 5:00 p.m. (Toronto time) and on the following Business Day if transmitted on or
after 5:00 p.m. (Toronto time). Notwithstanding the foregoing, the Indenture Trustee may, in its
discretion, agree to accept notices and other communications to it hereunder by other means
pursuant to procedures approved by it; provided that approval of such procedures may be limited to
particular notices or communications.

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14.3 Notice to Noteholders.

          Any notice, document or other communication required or permitted to be given or delivered
hereunder to the Noteholders in registered form will be deemed to be validly given if sent to a
destination within Canada by first class mail and if sent to a destination outside of Canada by
airmail, postage prepaid in each case, or sent by facsimile transmission or electronic mail and
confirmed by first class mail in the case of a destination within Canada and airmail in the case of
a destination outside of Canada, addressed in each case to the Noteholder at its post office
address appearing in the Note Register. Every notice sent by mail will be deemed to have been
given on the fifth Business Day following the mailing of the same, unless at the time or within
five Business Days following the mailing of the same, postal service is disrupted in which case
notice shall be effectively given only when received. Every notice sent by facsimile transmission
or electronic mail will be deemed to have been received on the day of transmittal thereof if given
prior to 5:00 p.m. (Toronto time) and on the following Business Day if transmitted on or after 5:00
p.m. (Toronto time). Notwithstanding the foregoing, any Noteholder may, in its discretion, agree
to accept notices and other communications to it hereunder by other means pursuant to procedures
approved by it; provided that approval of such procedures may be limited to particular notices or
communications.

14.4 Notice to Other Specified Creditors.

          Any notice, document or other communication required or permitted to be given or delivered to
(i) a Credit Enhancer will be given in accordance with the Related Credit Enhancement Agreement;
(ii) the Financial Services Agent will be given in accordance with the Financial Services
Agreement; (iii) the Financial Services Sub-Agent will be given in accordance with the Financial
Services Sub-Agency Agreement; (iv) a Servicer or Back-Up Servicer will be given in accordance with
the Related Servicing Agreement or agreement with such Back-Up Servicer; (v) an Originator will be
given in accordance with the Related Securitization Agreement;(vi) a counterparty pursuant to a
Hedging Transaction will be given in accordance with the Related Hedging Transaction; and (vii) any
other Specified Creditor will be given in accordance with the relevant document to which such
Specified Creditor and the Trust are parties.

14.5 Notice to Rating Agencies.

          Any notice, document or other communication required or permitted to be given or delivered to
the Rating Agencies hereunder will be in writing and will be given by delivery to the applicable
address provided to the parties hereto by the Rating Agencies or by facsimile transmission or
electronic mail. Any such notice delivered 5:00 p.m. (Toronto time) shall be deemed to have been
given on the next Business Day.

14.6 Change of Address.

          Any Person referenced above may from time to time notify any other interested Person, in
accordance with the provisions hereof, of any change of address which thereafter,

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until changed by like notice, shall be the address of such Person for all purposes of this
Indenture.

ARTICLE 15

GENERAL

15.1 Evidence of Rights of Specified Creditors.

          Any request, direction, notice, consent or other instrument which this Indenture may require
or permit to be executed by the Specified Creditors may be in any number of concurrent instruments
of similar tenor and may be signed or executed by the Specified Creditors in person or by attorney
duly appointed in writing. The Indenture Trustee may act and rely upon either of the following as
proof of the execution of any instrument or of a writing appointing an attorney:

	 	(a)	 	the certificate of a notary public or other officer, authorized
to take acknowledgements of deeds to be recorded at the place where the
certificate was made, to the effect that the Person signing the instrument or
writing acknowledged to him the execution thereof; or
	 
	 	(b)	 	an affidavit of a witness of the execution.

15.2 Trust Obligation.

          No recourse may be taken, directly or indirectly, with respect to the obligations of the
Trust, the Issuer Trustee or the Indenture Trustee on the Notes or the other debts, liabilities or
obligations of the Trust to the other Specified Creditors under this Indenture, any Related
Supplement, any Related Programme Agreement or any certificate or other writing delivered in
connection herewith or therewith, against: (i) the Indenture Trustee, the Issuer Trustee, the
Financial Services Sub-Agent or the Financial Services Agent in their individual capacities, (ii)
any owner of a beneficial interest in the Trust or (iii) any partner, owner, beneficiary, officer,
director, employee, representative or agent of: (a) the Indenture Trustee, the Issuer Trustee, the
Financial Services Sub-Agent or the Financial Services Agent in their individual capacities, (b)
any owner of a beneficial interest in the Issuer Trustee, the Indenture Trustee, the Financial
Services Sub-Agent or the Financial Services Agent or (c) any successor or assign of the Indenture
Trustee, the Issuer Trustee, the Financial Services Sub-Agent or the Financial Services Agent in
their individual capacities, except as any such Person may have expressly agreed.

15.3 No Petition.

          The Indenture Trustee, by entering into this Indenture, and each Noteholder and other
Specified Creditor, by accepting, making or acquiring a Note or becoming a Specified Creditor,
hereby covenants and agrees that they will not at any time institute or encourage against the
Trust, or join or acquiesce in any institution against the Trust of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
federal or provincial bankruptcy, insolvency, winding-up or similar law in connection with

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any obligations relating to the Obligations Secured, this Indenture or any of the other
Programme Agreements. The foregoing shall not limit the rights of the Indenture Trustee to file
any claim in or otherwise take any action with respect to any insolvency proceeding that was
instituted against the Trust by any Person other than the Indenture Trustee. Notwithstanding
anything to the contrary contained in this Indenture, no supplemental indenture hereto may modify
or amend this Section 15.3 with respect to rights of the Noteholders or the rights of any other
Specified Creditors.

15.4 Subordination.

          The Indenture Trustee, by entering into this Indenture, and each Noteholder and other
Specified Creditor, by accepting, making or acquiring a Note or becoming a Specified Creditor,
acknowledges and agrees that the Obligations Secured represent indebtedness of the Trust and do not
represent an interest in any assets (other than the Related Collateral for such Obligations
Secured) of the Trust (including by virtue of any deficiency claim in respect of Related
Obligations Secured not paid or otherwise satisfied from the Related Collateral for such
Obligations Secured and proceeds thereof). In furtherance of and not in derogation of the
foregoing, to the extent the Trust enters into other securitization transactions or issues any
Series of Notes, the Indenture Trustee as well as each Related Specified Creditor acknowledges and
agrees that it shall have no right, title or interest in or to any assets (or interests therein) of
the Trust other than the Related Collateral for such Series and the Related Obligations Secured.
To the extent that, notwithstanding the agreements and provisions contained in the preceding
sentences of this section, the Indenture Trustee or any Related Specified Creditor either (i)
asserts an interest or claim to, or benefit from, assets of the Trust other than the Related
Collateral for the Related Obligations Secured due or owing to the Indenture Trustee or such
Related Specified Creditor (“Other Assets”) or (ii) is deemed to have any such interest, claim or
benefit in or from Other Assets, whether by operation of law, legal process, pursuant to applicable
provisions of bankruptcy or insolvency laws or otherwise, and whether deemed asserted against or
through the Trust or any other Person, the Indenture Trustee and each such Related Specified
Creditor further acknowledges and agrees that any such interest, claim or benefit in or from Other
Assets is and shall be expressly subordinated to the indefeasible payment in full of all
obligations and liabilities of the Trust which, under the terms of the relevant documents relating
to the securitization of such Other Assets, are entitled to be paid from, entitled to the benefits
of, or otherwise secured by such Other Assets (whether or not any such entitlement or security
interest is legally perfected or otherwise entitled to a priority of distribution or application
under applicable law, including bankruptcy or insolvency laws, and whether asserted against the
Trust or any other Person). Each Specified Creditor further acknowledges and agrees that no
adequate remedy at law exists for a breach of this Section 15.4 and the terms of this Section 15.4
may be enforced by an action for specific performance.

15.5 Limited Recourse.

          The Issuer Trustee has entered into this Indenture solely in its capacity as trustee of the
Trust and not in its personal capacity. Any and all of the representations, warranties,
undertakings, covenants, indemnities, agreements and other obligations made on the part of the
Issuer Trustee herein are made and intended not as personal representations, warranties,

- 90 -

 

undertakings, covenants, indemnities, agreements and other obligations by the Issuer Trustee
or for the purpose or with the intention of binding the Issuer Trustee in its personal capacity,
but are made and intended for the purpose of binding only the property and assets of the Trust or a
specific portion thereof. No property or assets of the Issuer Trustee, whether owned beneficially
by it in its personal capacity or otherwise (other than the Trust Property), will be subject to
levy, execution or other enforcement procedures with regard to any of the representations,
warranties, undertakings, covenants, indemnities, agreements and other obligations of the Trust or
the Issuer Trustee hereunder. No recourse may be had or taken, directly or indirectly against the
Issuer Trustee in its personal capacity, any Beneficiary or any incorporator, Affiliate,
shareholder, director, officer, representative, employee or agent of the Issuer Trustee or any
predecessor or successor of the Issuer Trustee with regard to the representations, warranties,
undertakings, covenants, indemnities, agreements and other obligations of the Trust or the Issuer
Trustee hereunder provided, however, that nothing in this Section 15.5 shall relieve any of the
foregoing persons from any liability which such person may otherwise have in such capacity for
his/her wilful misconduct or negligence.

15.6 Execution of Counterparts.

          This Indenture may be executed in several counterparts, each of which when so executed shall
be deemed to be an original and the counterparts together shall constitute one and the same
instrument.

15.7 Delivery of Executed Copies.

          Each party acknowledges delivery of a fully executed copy of this Indenture.

[Signature page follows]

- 91 -

 

          IN WITNESS WHEREOF the parties hereto have duly executed this Indenture.

	 	 	 	 	 	 	 
	 

	 	 	)	 	 	BNY TRUST COMPANY OF
	 

	 	 	)	 	 	CANADA in its capacity as trustee of
	 

	 	 	)	 	 	FLEET LEASING RECEIVABLES
	 

	 	 	)	 	 	TRUST, by its Financial Services Agent,
	 

	 	 	 	 	 	PHH VEHICLE MANAGEMENT
	 

	 	 	 	 	 	SERVICES INC.
	 

	 	 	 	 )	 	 	 	 	 
	 

	 	 	)	 	 	By:
	 	/s/ Mark E. Johnson
	 

	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	 	 	Name: Mark E. Johnson
	 	 	 	)	 	 	 	 	Title: Senior Vice President & Treasurer

	 	 	 	 	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	 

	 	 	)	 	 	COMPUTERSHARE TRUST
	 

	 	 	)	 	 	COMPANY OF CANADA, as
	 

	 	 	)	 	 	Indenture Trustee

	 	 	 	 )	 	 	 	 	 
	 

	 	 	)	 	 	By:
	 	/s/ David Ha
	 

	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	 	 	Name: David Ha
	 	 	 	)	 	 	 	 	Title: Professional, Corporate Trust
	 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	 	 	 
	 

	 	 	)	 	 	By:
	 	/s/ Mircho Mirchev
	 

	 	 	 	 	 	 	 	 
	 	 	 	)	 	 	 	 	Name: Mircho Mirchev
	 	 	 	)	 	 	 	 	Title: Professional, Corporate Trustexv4w8w1

Exhibit 4.8.1

BNY TRUST COMPANY OF CANADA

as Issuer Trustee

of

FLEET LEASING RECEIVABLES TRUST

and

COMPUTERSHARE TRUST COMPANY OF CANADA

as Indenture Trustee and Paying Agent

 

SERIES 2010-1 SUPPLEMENTAL INDENTURE

January 27, 2010

 

 

 

SERIES
2010-1 SUPPLEMENTAL INDENTURE

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	ARTICLE 1

	INTERPRETATION

	 
	 	 	 	 	 	 
	Section 1.1

	 	Definitions
	 	 	1	 
	Section 1.2

	 	Interpretation
	 	 	2	 
	Section 1.3

	 	Extended Meanings
	 	 	3	 
	Section 1.4

	 	Sections and Headings
	 	 	3	 
	Section 1.5

	 	Proper Law of Supplemental Indenture	 	 	3	 
	Section 1.6

	 	Invalidity of Provisions
	 	 	3	 
	Section 1.7

	 	Computation of Time Periods
	 	 	3	 
	Section 1.8

	 	Non-Business Days
	 	 	4	 
	Section 1.9

	 	Accounting Principles
	 	 	4	 
	Section 1.10

	 	Currency
	 	 	4	 
	Section 1.11

	 	References to Acts of the Trust
	 	 	4	 
	 
	 	 	 	 	 	 
	ARTICLE 2

	PRINCIPAL TERMS

	 
	 	 	 	 	 	 
	Section 2.1

	 	Principal Terms
	 	 	5	 
	Section 2.2

	 	Application of Moneys
	 	 	11	 
	Section 2.3

	 	Voting
	 	 	11	 
	Section 2.4

	 	Clean-Up Provision
	 	 	12	 
	Section 2.5

	 	Notice of Sale of Related Collateral
	 	 	12	 
	Section 2.6

	 	Noteholder Resolutions
	 	 	12	 
	 
	 	 	 	 	 	 
	ARTICLE 3

	COVENANTS AND ACKNOWLEDGMENTS

	 
	 	 	 	 	 	 
	Section 3.1

	 	Covenants
	 	 	13	 
	Section 3.2

	 	Noteholder Agreements and Acknowledgments
	 	 	14	 
	 
	 	 	 	 	 	 
	ARTICLE 4

	GENERAL

	 
	 	 	 	 	 	 
	Section 4.1

	 	Confirmation of Trust Indenture
	 	 	20	 
	Section 4.2

	 	Obligations of the Trust
	 	 	20	 
	Section 4.3

	 	Acceptance
	 	 	20	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page
	Section 4.4

	 	Limitation of Liability of Issuer Trustee
	 	 	20	 
	Section 4.5

	 	Execution in Counterparts
	 	 	21	 
	Section 4.6

	 	Formal Date
	 	 	21	 
	Section 4.7

	 	Delivery of Executed Copies
	 	 	21	 
	Section 4.8

	 	Rule 144A Information
	 	 	21	 

	 	 	 	 	 
	Schedules
	 	 	 	 
	 
	 	 	 	 
	Schedule A-1a

	 	—
	 	Form of Series 2010-1 Class A-1a Asset-Backed Note
	Schedule A-1b

	 	—
	 	Form of Series 2010-1 Class A-1b Asset-Backed Note
	Schedule A-2a

	 	—
	 	Form of Series 2010-1 Class A-2a Asset-Backed Note
	Schedule A-2b

	 	—
	 	Form of Series 2010-1 Class A-2b Asset-Backed Note
	Schedule B

	 	—
	 	Form of Series 2010-1 Class B Asset-Backed Note

-ii-

 

SERIES 2010-1

SUPPLEMENTAL INDENTURE

     SERIES 2010-1 SUPPLEMENTAL INDENTURE made as of January 27, 2010, between BNY TRUST COMPANY OF
CANADA, a trust company established under the laws of Canada (the “Issuer Trustee”), as Issuer
Trustee of FLEET LEASING RECEIVABLES TRUST, a trust established under the laws of the Province of
Ontario pursuant to a Declaration of Trust made November 2, 2009, amended and restated on November
16, 2009 and further amended on January 27, 2010 (the “Trust”), and COMPUTERSHARE TRUST COMPANY OF
CANADA, a trust company established under the laws of Canada (the “Indenture Trustee”).

     WHEREAS, pursuant to the Trust Indenture, provision was made for the issuance of Notes from
time to time;

     AND WHEREAS, pursuant to Section 2.3 of the Trust Indenture, the Notes may, at the election of
the Issuer Trustee, be issued in one or more Series by the execution and delivery of a Related
Supplement;

     AND WHEREAS the Issuer Trustee has authorized the issuance of a Series of Notes to be known as
the “Series 2010-1 Notes”;

     AND WHEREAS the parties are executing and delivering this Supplemental Indenture to provide
for the issuance of the Series 2010-1 Notes;

     AND WHEREAS the foregoing recitals and statements of fact are made by the Trust and not by the
Indenture Trustee;

     NOW THEREFORE THIS SUPPLEMENTAL INDENTURE WITNESSES and it is hereby covenanted, agreed and
declared as follows:

ARTICLE 1

INTERPRETATION

Section 1.1 Definitions.

	(1)	 	In this Supplemental Indenture the following terms will have the following meanings:
	 
	 	 	“Accrual Period” means, with respect to any Distribution Date, the period from and including
the immediately preceding Distribution Date to but excluding such Distribution Date (or, in
the case of the initial Accrual Period, from and including the Related Series Issuance Date
for the Series 2010-1 Notes to but excluding February 15, 2010).
	 
	 	 	“Business Days” shall have the meaning set out in the Purchase Agreement.
	 
	 	 	“Class A-1a Interest Rate” has the meaning set forth in Section 2.1(f) hereof.

 

 

	 	 	“Class A-1b Interest Rate” has the meaning set forth in Section 2.1(g) hereof.
	 
	 	 	“Class A-2a Interest Rate” has the meaning set forth in Section 2.1(h) hereof.
	 
	 	 	“Class A-2b Interest Rate” has the meaning set forth in Section 2.1(i) hereof.
	 
	 	 	“Class B Interest Rate” has the meaning set forth in Section 2.1(j) hereof.
	 
	 	 	“Purchase Agreement” means the trust purchase agreement made as of January 27, 2010 among
BNY Trust Company of Canada as trustee of the Trust, PHH VMS, PHH LP and PHH Corporation.
	 
	 	 	“Series 2010-1 Notes” means the Notes to be created and issued hereunder, in five Classes,
to be known as Class A-1a Asset-Backed Notes, Class A-1b Asset-Backed Notes, Class A-2a
Asset-Backed Notes, Class A-2b Asset-Backed Notes and Class B Asset-Backed Notes.
	 
	 	 	“Series Accounts” means any bank or other depository accounts maintained by or on behalf of
the Trust from time to time with respect to the Series 2010-1 Notes, including the Related
Collection Account, any Related Collateral Account, the Cash Spread Account and the Yield
Supplement Account.
	 
	 	 	“Supplemental Indenture” means this Supplemental Indenture, together with the Schedules
hereto, as amended, supplemented, modified, restated or replaced from time to time, together
with all schedules hereto.
	 
	 	 	“Trust Indenture” means the trust indenture made as of November 16, 2009 between the Trust
and the Indenture Trustee as amended, supplemented, modified, restated or replaced from time
to time, including pursuant to the terms of this Supplemental Indenture.
	 
	(2)	 	Unless otherwise defined in Section 1.1(1), all capitalized terms used in this Supplemental
Indenture shall have the meanings attributed thereto in the Trust Indenture, and if not
defined therein, shall have the meanings attributed thereto in the Purchase Agreement.

Section 1.2 Interpretation.

        Subject to the next following sentences, this Supplemental Indenture is supplemental to the
Trust Indenture and the Trust Indenture shall be read in conjunction with this Supplemental
Indenture and all of the provisions of the Trust Indenture, shall apply to and shall have effect in
connection with this Supplemental Indenture in the same manner as if all of the provisions of the
Trust Indenture and of this Supplemental Indenture were contained in one instrument. If any terms
of the Trust Indenture are inconsistent with the express terms hereof (including for greater
certainty, Section 2.1(bb) hereof), the terms of the Trust Indenture shall be, solely in respect of
the Series 2010-1 Notes, amended and supplemented so as to be consistent herewith. The

 - 2 - 

 

provisions of this Supplemental Indenture are applicable only in respect of the Series 2010-1
Notes and not the Notes of any other Series.

Section 1.3 Extended Meanings.

     Words importing the singular number only will include the plural and vice versa and words
importing any gender will include all genders. Unless the context requires otherwise, a reference
in this Supplemental Indenture to any agreement, instrument or declaration means such agreement,
instrument or declaration as the same may be amended, supplemented, modified, restated or replaced
from time to time. Any reference herein to “include”, “includes” or “including” means “include
without limitation”, “includes without limitation” or “including without limitation”, as
applicable.

Section 1.4 Sections and Headings.

     The table of contents does not form part of this Supplemental Indenture. The division of this
Supplemental Indenture into Articles and Sections and the insertion of headings are for convenience
of reference only and will not affect the construction or interpretation of this Supplemental
Indenture. The terms “this Supplemental Indenture”, “hereof”, “hereunder” and similar expressions
refer to this Supplemental Indenture and not to any particular Article, Section or other portion of
this agreement and include any agreement or instrument supplemental or ancillary hereto. Unless
something in the subject matter or context is inconsistent therewith, references herein to Articles
and Sections are to Articles and Sections of this Supplemental Indenture.

Section 1.5 Proper Law of Supplemental Indenture.

     This Supplemental Indenture will be governed by and construed in accordance with the laws of
the Province of Ontario and the federal laws of Canada applicable therein and each of the parties
hereto attorn to the non-exclusive jurisdiction of the Courts of the Province of Ontario.

Section 1.6 Invalidity of Provisions.

     Except for any provision or covenant contained herein which is fundamental to the subject
matter of this Supplemental Indenture (including, without limitation, those that relate to the
payment of money), if one or more provisions of this Supplemental Indenture is for any reason
whatever held invalid, such provision will be deemed severable from the remaining covenants,
agreements and provisions of this Supplemental Indenture and will in no way affect the validity or
enforceability of such remaining provisions or the rights of any parties hereto.

Section 1.7 Computation of Time Periods.

     In this Supplemental Indenture, with respect to the computation of periods of time from a
specified date to a later specified date, unless otherwise expressly stated, the word “from” means
“from and including” and the words “to” and “until” each mean “to but excluding”.

 - 3 - 

 

Section 1.8 Non-Business Days.

     Whenever any payment to be made hereunder shall be stated to be due, any calculation is to be
made or any other action to be taken hereunder shall be stated to be required to be taken on a day
other than a Business Day, such payment shall be made, such calculation shall be made and such
other action shall be taken on the next succeeding Business Day and an extension of time shall be
included for such purposes. Any payment made after 3:00 p.m. (Toronto time) on a Business Day shall
be deemed to be made on the next following Business Day.

Section 1.9 Accounting Principles.

     Where the character or amount of any asset or liability or item of revenue or expense is
required to be determined, or any consolidation or other accounting computation is required to be
made for the purpose of this Supplemental Indenture, such determination or calculation will, to the
extent applicable and except as otherwise specified herein or as otherwise agreed in writing by the
parties, be made in accordance with GAAP applied on a consistent basis. Wherever in this
Supplemental Indenture reference is made to “GAAP”, such reference will be deemed to be to
generally accepted accounting principles from time to time approved by the Canadian Institute of
Chartered Accountants, or, where so elected by the relevant Person, as approved by the Financial
Accounting Standards Board, or in either event any successor institute, until such time as the
reporting entity in question is required to or chooses to adopt International Financial Reporting
Standards, in which case such reference will be deemed to be to the International Financial
Reporting Standards as published by the International Accounting Standards Board, or any successor
accounting standards board, in each case, applicable as at the date on which such calculation is
made or required to be made in accordance with GAAP. To the extent that the definitions of
accounting terms in this Supplemental Indenture or in any certificate or other documents are
inconsistent with the meaning of such terms under GAAP, the definitions in this Supplemental
Indenture or in any such certificate or other document shall prevail.

Section 1.10 Currency.

     Unless stated otherwise, all amounts herein are stated in Canadian Dollars.

Section 1.11 References to Acts of the Trust.

     For greater certainty, where any reference is made in this Supplemental Indenture to an act to
be performed by, an appointment to be made by, an obligation or liability of, an asset or right of,
a discharge or release to be provided by, a suit or proceeding to be taken by or against, or a
covenant, representation or warranty (other than relating to the constitution or existence of the
Trust) by or with respect to either: (i) the Trust; or (ii) the Issuer Trustee, such reference
will be construed and applied for all purposes as if it referred to an act to be performed by, an
appointment to be made by, an obligation or liability of, an asset or right of, a discharge or
release to be provided by, a suit or proceeding to be taken by or against, or a covenant,
representation or warranty (other than relating to the constitution or existence of the Trust) by
or

 - 4 - 

 

with respect to, the Issuer Trustee as trustee of the Trust or any agent appointed by it to
act on its behalf.

ARTICLE 2

PRINCIPAL TERMS

Section 2.1 Principal Terms.

       The Principal Terms of the Series 2010-1 Notes are as follows:

	 	(a)	 	Name of Notes. The Notes to be issued hereunder shall be designated as “Series
2010-1 Notes” and such Notes shall be issued in five Classes, designated as Class A-1a
Asset-Backed Notes, Class A-1b Asset-Backed Notes, Class A-2a Asset-Backed Notes, Class
A-2b Asset-Backed Notes and Class B Asset-Backed Notes;
	 
	 	(b)	 	Types of Notes. The Class A-1a Asset-Backed Notes, Class A-1b Asset-Backed
Notes, Class A-2a Asset-Backed Notes and Class A-2b Asset-Backed Notes shall be Senior
Notes, and the Class B Asset-Backed Notes shall be Subordinated Notes;
	 
	 	(c)	 	Aggregate Principal Amount. The aggregate principal amount of (i) the Class
A-1a Asset-Backed Notes of the Series 2010-1 Notes which may be issued is limited to
$40,000,000, (ii) the Class A-1b Asset-Backed Notes of the Series 2010-1 Notes which
may be issued is limited to U.S.$81,585,066.16, (iii) the Class A-2a Asset-Backed Notes
of the Series 2010-1 Notes which may be issued is limited to $90,740,000, (iv) the
Class A-2b Asset-Backed Notes of the Series 2010-1 Notes which may be issued is limited
to $145,900,000, and (v) the Class B Asset-Backed Notes of the Series 2010-1 Notes
which may be issued is limited to $16,952,000;
	 
	 	(d)	 	Series Issuance Date. The Related Series Issuance Date for the Series 2010-1
Notes shall be January 27, 2010;
	 
	 	(e)	 	Distribution Dates. The Distribution Dates for the Series 2010-1 Notes, shall
be each Distribution Date under the Purchase Agreement;
	 
	 	(f)	 	Class A-1a Interest. The Class A-1a Asset-Backed Notes shall bear interest on
the outstanding principal balance thereof at a rate per annum (based on a year of 365
days) equal to 1.08354% (the “Class A-1a Interest Rate”). Interest on the Class A-1a
Asset-Backed Notes shall accrue from the Related Series Issuance Date for the Series
2010-1 Notes until the payment in full of the Class A-1a Asset-Backed Notes, shall be
payable monthly in arrears on each Distribution Date and shall be calculated: (i) with
respect to the first Accrual Period and the related Distribution Date, as an amount
equal to the product of (A) the Class A-1a Interest Rate, (B) the outstanding principal
amount of the Class A-1a Asset-

 - 5 - 

 

	 	 	 	Backed Notes on the first day of such Accrual Period, and (C) a fraction equal to
the actual number of days in such Accrual Period divided by 365, and (ii) with
respect to each subsequent Accrual Period and the related Distribution Date, as an
amount equal to the product of (A) the Class A-1a Interest Rate, (B) the outstanding
principal amount of the Class A-1a Asset-Backed Notes on the immediately preceding
Distribution Date, after giving effect to all payments of principal to Class A-1a
Asset-Backed Noteholders on or prior to the immediately preceding Distribution Date,
and (C) a fraction equal to the actual number of days in such Accrual Period divided
by 365;

	 	(g)	 	Class A-1b Interest. The Class A-1b Asset-Backed Notes shall bear interest on
the outstanding principal balance thereof at a rate per annum (based on a year of 360
days) equal to 0.46945% (the “Class A-1b Interest Rate”). Interest on the Class A-1b
Asset-Backed Notes shall accrue from the Related Series Issuance Date for the Series
2010-1 Notes until the payment in full of the Class A-1b Asset-Backed Notes, shall be
payable monthly in arrears on each Distribution Date and shall be calculated: (i) with
respect to the first Accrual Period and the related Distribution Date, as an amount
equal to the product of (A) the Class A-1b Interest Rate, (B) the outstanding principal
amount of the Class A-1b Asset-Backed Notes on the first day of such Accrual Period,
and (C) a fraction equal to the actual number of days in such Accrual Period divided by
360, and (ii) with respect to each subsequent Accrual Period and the related
Distribution Date, an amount equal to the product of (A) the Class A-1b Interest Rate,
(B) the outstanding principal amount of the Class A-1b Asset-Backed Notes on the
immediately preceding Distribution Date, after giving effect to all payments of
principal to Class A-1b Asset-Backed Noteholders on or prior to the immediately
preceding Distribution Date, and (C) a fraction equal to the actual number of days in
such Accrual Period divided by 360;
	 
	 	(h)	 	Class A-2a Interest. The Class A-2a Asset-Backed Notes shall bear interest on
the outstanding principal balance thereof at a rate per annum (based on a year of 365
days) equal to 2.409% (the “Class A-2a Interest Rate”). Interest on the Class A-2a
Asset-Backed Notes shall accrue from the Related Series Issuance Date for the Series
2010-1 Notes until the payment in full of the Class A-2a Asset-Backed Notes, shall be
payable monthly in arrears on each Distribution Date and shall be calculated: (i) with
respect to the first Accrual Period and the related Distribution Date, as an amount
equal to the product of (A) the Class A-2a Interest Rate, (B) the outstanding principal
amount of the Class A-2a Asset-Backed Notes on the first day of such Accrual Period,
and (C) a fraction equal to the actual number of days in such Accrual Period divided by
365, and (ii) with respect to each subsequent Accrual Period and the related
Distribution Date, as an amount equal to the product of (A) the Class A-2a Interest
Rate, (B) the outstanding principal amount of the Class A-2a Asset-Backed Notes on the
immediately preceding Distribution Date, after giving effect to all payments of

 - 6 - 

 

	 	 	 	principal to Class A-2a Asset-Backed Noteholders on or prior to the immediately
preceding Distribution Date, and (C) a fraction equal to the actual number of days
in such Accrual Period divided by 365;

	 	(i)	 	Class A-2b Interest. The Class A-2b Asset-Backed Notes shall bear interest on
the outstanding principal balance thereof at a rate per annum (based on a year of 365
days) equal to 2.175% (the “Class A-2b Interest Rate”). Interest on the Class A-2b
Asset-Backed Notes shall accrue from the Related Series Issuance Date for the Series
2010-1 Notes until the payment in full of the Class A-2b Asset-Backed Notes, shall be
payable monthly in arrears on each Distribution Date and shall be calculated: (i) with
respect to the first Accrual Period and the related Distribution Date, as an amount
equal to the product of (A) the Class A-2b Interest Rate, (B) the outstanding principal
amount of the Class A-2b Asset-Backed Notes on the first day of such Accrual Period,
and (C) a fraction equal to the actual number of days in such Accrual Period divided by
365, and (ii) with respect to each subsequent Accrual Period and the related
Distribution Date, as an amount equal to the product of (A) the Class A-2b Interest
Rate, (B) the outstanding principal amount of the Class A-2b Asset-Backed Notes on the
immediately preceding Distribution Date, after giving effect to all payments of
principal to Class A-2b Asset-Backed Noteholders on or prior to the immediately
preceding Distribution Date, and (C) a fraction equal to the actual number of days in
such Accrual Period divided by 365;
	 
	 	(j)	 	Class B Interest. The Class B Asset-Backed Notes shall bear interest on the
outstanding principal balance thereof at a rate per annum (based on a year of 365 days)
equal to 6.000% (the “Class B Interest Rate”). Interest on the Class B Asset-Backed
Notes shall accrue from the Related Series Issuance Date for the Series 2010-1 Notes
until the payment in full of the Class B Asset-Backed Notes, shall be payable monthly
in arrears on each Distribution Date and shall be calculated: (i) with respect to the
first Accrual Period and the related Distribution Date, as an amount equal to the
product of (A) the Class B Interest Rate, (B) the outstanding principal amount of the
Class B Asset-Backed Notes on the first day of such Accrual Period, and (C) a fraction
equal to the actual number of days in such Accrual Period divided by 365, and (ii) with
respect to each subsequent Accrual Period and the related Distribution Date, as an
amount equal to the product of (A) the Class B Interest Rate, (B) the outstanding
principal amount of the Class B Asset-Backed Notes on the immediately preceding
Distribution Date, after giving effect to all payments of principal to Class B
Asset-Backed Noteholders on or prior to the immediately preceding Distribution Date,
and (C) a fraction equal to the actual number of days in such Accrual Period divided by
365;
	 
	 	(k)	 	Overdue Interest. Without limiting any obligation of the Trust to make
payments of interest when due, interest due on the Series 2010-1 Notes but not

 - 7 - 

 

	 	 	 	paid on any Distribution Date shall be due on the next Distribution Date, together
with additional interest on such overdue interest at the same rate;

	 	(l)	 	Interest pari passu. The Class A-1a Asset-Backed Notes, the Class A-1b
Asset-Backed Notes, the Class A-2a Asset-Backed Notes and Class A-2b Asset-Backed Notes
rank pari passu in right of payment of interest, and senior in right of payment of
interest to the Class B Notes.
	 
	 	(m)	 	Payment of Principal. The principal amount of each Series 2010-1 Note of a
particular Class payable on each Distribution Date shall be an amount equal to the pro
rata portion of the aggregate amount available (and required) to be applied by the
Trust to such Class of Series 2010-1 Notes on such Distribution Date pursuant to
Section 6.1(2)(b)(ii)(B) of the Purchase Agreement; provided that payment of such
principal amounts shall be made (i) first, on a pari passu basis, to the Class A-1a
Asset-Backed Notes and the Class A-1b Asset-Backed Notes, until all principal owing in
respect thereof is paid in full, (ii) second, on a pari passu basis, to the Class A-2a
Asset-Backed Notes and the Class A-2b Asset-Backed Notes, until all principal owing in
respect thereof is paid in full, and (iii) thereafter to the Class B Asset-Backed
Notes; provided further that, on the maturity date for each Class of Series 2010-1
Notes, all outstanding principal owing in respect of the Notes of each such Class shall
be payable by the Trust;
	 
	 	(n)	 	Language and Currency. The Class A-1b Asset-Backed Notes of the Series 2010-1
Notes shall be denominated in U.S. Dollars and the Class A-1a Asset-Backed Notes, Class
A-2a Asset-Backed Notes, Class A-2b Asset-Backed Notes and Class B Asset-Backed Notes
of the Series 2010-1 Notes shall be denominated in Canadian Dollars, and such Notes may
be in the English language or the English and the French languages;
	 
	 	(o)	 	Form of Notes. The Series 2010-1 Notes and the certificate of the Paying Agent
to be endorsed thereon shall be substantially in the form of (i) Schedule A-1a in the
case of Class A-1a Asset-Backed Notes of the Series 2010-1 Notes, (ii) Schedule A-1b in
the case of Class A-1b Asset-Backed Notes of the Series 2010-1 Notes, (iii) Schedule
A-2a in the case of Class A-2a Asset-Backed Notes of the Series 2010-1 Notes, (iv)
Schedule A-2b in the case of Class A-2b Asset-Backed Notes of the Series 2010-1 Notes
and (v) Schedule B in the case of Class B Asset-Backed Notes of the Series 2010-1
Notes, in each case with such appropriate insertions, omissions, substitutions and
variations as may be approved by the Issuer Trustee and the Paying Agent;
	 
	 	(p)	 	Maturity Date. The maturity date of the Class A-1a Asset-Backed Notes and the
Class A-1b Asset-Backed Notes is February 15, 2011, the maturity date of the Class A-2a
Asset-Backed Notes and the Class A-2b Asset-Backed Notes is November 15, 2013, and the
maturity date of the Class B Asset-Backed Notes is January 15, 2018;

 - 8 - 

 

	 	(q)	 	Other Deliveries. The Related Hedging Transaction with respect to the Series
2010-1 Notes is the transaction under the Swap Agreement, and the execution and
delivery of the Swap Agreement by the Trust and the Swap Counterparty is a condition to
the issuance of the Series 2010-1 Notes;
	 
	 	(r)	 	Book-Entry Notes and Definitive Notes. The Series 2010-1 Notes shall initially
be Book-Entry Notes;
	 
	 	(s)	 	Minimum Amounts. The Series 2010-1 Notes shall be issued in minimum
denominations of $150,000 (or U.S. $150,000, as applicable) and, except for the Class
A-1b Asset-Backed Notes, integral multiples of $1,000 (or U.S. $1,000, as applicable)
thereafter;
	 
	 	(t)	 	Security for Related Obligations Secured. The Related Collateral with respect
to the Series 2010-1 Notes (including the Portfolio of Assets acquired pursuant to the
Purchase Agreement, the Cash Spread Account and the Yield Supplement Account) shall be
held as security for the due payment of the Related Obligations Secured alone and shall
not be available for the Related Specified Creditors with respect to any other Series.
For greater certainty, the Related Collateral includes all rights of the Trust under
the Swap Agreement including in respect of any cash collateral or similar account
established pursuant to the Swap Agreement. The Related Obligations Secured shall be
secured solely by the Related Collateral and recourse in respect of the Related
Obligations Secured shall be limited to such Related Collateral;
	 
	 	(u)	 	Related Rating Agencies. DBRS and Moody’s are the Rating Agencies in respect
of the Series 2010-1 Notes;
	 
	 	(v)	 	Related Securitization Agreement. The Related Securitization Agreement in
respect of the Series 2010-1 Notes is the Purchase Agreement and the Master Lease
delivered thereunder;
	 
	 	(w)	 	Initial Rating of Notes. The Series 2010-1 Notes will initially be rated (i)
P-1 by Moody’s and R-1 (high) by DBRS for Class A-1a Asset-Backed Notes and Class A-1b
Asset-Backed Notes, (ii) Aaa by Moody’s and AAA by DBRS for Class A-2a Asset-Backed
Notes and Class A-2b Asset-Backed Notes, and (iii) A2 by Moody’s and A by DBRS for
Class B Asset-Backed Notes;
	 
	 	(x)	 	Reserves. The Reserves with respect to Series 2010-1 shall be any Deferred
Rent from time to time payable under the Purchase Agreement, and all amounts from time
to time in the Cash Spread Account or the Yield Supplement Account;
	 
	 	(y)	 	Paying Agent. The Paying Agent for the Series 2010-1 Notes will be
Computershare Trust Company of Canada;

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	 	(z)	 	Renewal or Extension of Senior Notes. For purposes of Section 3.3(1) of the
Trust Indenture, the holders of Series 2010-1 Notes which are Senior Notes may at any
time in their discretion renew or extend the time of payment of such Senior Notes or
exercise any other of their rights in respect thereof, including, without limitation,
the waiver of a Related Event of Default thereunder, all without assent from the
holders of Series 2010-1 Notes which are Subordinated Notes or the Indenture Trustee;
provided however that the holders of such Senior Notes or the Indenture Trustee shall
provide not less than 10 Business Days prior written notice to the holders of such
Subordinated Notes and the Related Rating Agencies of any such actions;
	 
	 	(aa)	 	Events of Default that Can be Waived. For purposes of Section 8.2(3) of the
Trust Indenture, all Related Events of Default may be waived pursuant to Section 8.2(3)
of the Trust Indenture; and
	 
	 	(bb)	 	Related Events of Default. In addition to those specified in the Trust
Indenture, the happening of any of the following events shall constitute a Related
Event of Default in respect of the Series 2010-1 Notes:

	 	(i)	 	the Trust defaults in the payment of the outstanding
principal owing on any Class of Series 2010-1 Notes on the maturity date
therefor; and
	 
	 	(ii)	 	the Swap Agreement is terminated prior to the payment
in full of all principal and interest owing in respect of the Class A-1b
Asset-Backed Notes and, whether or not the Trust is in breach of Section
3.1(e) hereof, the Trust fails to have a replacement currency swap
agreement satisfactory to the Noteholders of Class A-1b Asset-Backed Notes
(as confirmed by an Extraordinary Resolution of such Noteholders), acting
reasonably, in place within 30 days of such termination; provided that the
Trust shall give prompt notice of any such termination of the Swap
Agreement to the Related Rating Agencies;

provided that failure to pay interest when due on the Class B Asset-Backed Notes
shall not be a Related Event of Default to the extent such failure was a result of
there not being sufficient funds available for the payment thereof pursuant to the
application of Collections in accordance with Section 2.2 hereof.

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Section 2.2 Application of Moneys.

	(1)	 	For purposes of Section 9.5 of the Trust Indenture, all moneys standing at any time in any
Related Collateral Account with respect to Series 2010-1 Notes or otherwise received by the
Indenture Trustee or by the Receiver pursuant to Article 9 of the Trust Indenture with respect
to Series 2010-1 Notes or any Related Collateral shall be applied as follows:

       (a) first, in payment or reimbursement:

	 	(i)	 	to each of the Indenture Trustee, the Paying Agent
and the Issuer Trustee of the Related Proportionate Share of all fees and
expenses payable to each of them under the provisions hereof and the
Declaration of Trust, respectively (or to any Specified Creditor who has
advanced or paid any such sums in the amount of such sums); and
	 
	 	(ii)	 	to the Indenture Trustee, of the Related
Proportionate Share of all costs, charges and expenses of and incidental
to the appointment of a Receiver of the Related Collateral (including
legal fees and disbursements on a full indemnity basis) and the exercise
by such Receiver or the Indenture Trustee of all or any of the powers
granted to them under this Indenture, including the reasonable
remuneration of such Receiver or any agent or employee of such Receiver or
any agent of the Indenture Trustee and all outgoings properly paid by such
Receiver or the Indenture Trustee in exercising their powers as aforesaid;
and

       (b) thereafter, in accordance with Section 6.1 of the Purchase Agreement.

	(2)	 	The Trust has no right to prepay or redeem the Series 2010-1 Notes, other than pursuant to
the application of Collections in accordance with Section 6.1 of the Purchase Agreement or as
otherwise contemplated herein.

	(3)	 	Prior to a Related Event of Default, Collections shall be applied in accordance with Article
6 of the Purchase Agreement.

Section 2.3 Voting.

	(1)	 	For so long as part of the Series 2010-1 Notes are Book-Entry Notes, the voting rights of the
Series 2010-1 Noteholders holding interests in those Book-Entry Notes may be exercised through
the Clearing Agency (pursuant to the rules and procedures of the Clearing Agency) or by the
beneficial owners of the Series 2010-1 Notes; provided however that the Trust or the Indenture
Trustee, as applicable, may require such beneficial owners to provide proof satisfactory to
the Trust and the Indenture Trustee (i) of such ownership (whether by the provision of a
statutory declaration or such other

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	 	 	evidence as may reasonably be requested); and (ii) that such beneficial owner has not
exercised its voting rights through the Clearing Agency.
	 
	(2)	 	Notwithstanding Section 1.2 of the Trust Indenture, in determining whether Noteholders
holding the requisite percentage of Notes of any Class have given any request, demand,
authorization, direction, notice, consent, vote or waiver pursuant to the Trust Indenture,
Notes owned by any Originator, any Servicer or an Affiliate of either, shall not be
disregarded and shall be deemed to be outstanding if (i) in the case of an Originator or its
Affiliates, there are no Noteholders at such time other than an Originator or its Affiliates,
and (ii) in the case of any Servicer or an Affiliate, the subject matter of the request,
demand, authorization, direction, notice, consent, vote or waiver in question does not relate
to its role as Servicer, any replacement of it as Servicer or any Servicer Default.

Section 2.4 Clean-Up Provision.

     If the Seller exercises its option to purchase the Purchased Assets pursuant to Section 7.3 of
the Purchase Agreement, the Trust shall, out of the proceeds thereof and any amounts then in the
Cash Spread Account and the Yield Supplement Account, pay all amounts outstanding in respect of the
Series 2010-1 Notes on the related Distribution Date and all other Related Obligations Secured on
the date such rights are exercised, subject to and in accordance with the priority of payments
provided for in Section 6.1 of the Purchase Agreement.

Section 2.5 Notice of Sale of Related Collateral.

     So long as no Event of Termination (other than under Sections 7.1(e), (f), (g) or (i) of the
Purchase Agreement) has occurred and is continuing, the Seller shall be entitled to notice of the
sale of the Related Asset Interests or any part thereof by the Indenture Trustee and to purchase
Related Asset Interests at their then fair market value.

Section 2.6 Noteholder Resolutions.

     For purposes of determining whether the requisite amount of Series 2010-1 Noteholders have
approved, or are present in person or by proxy at a meeting to approve, any matter, Class A-1b
Asset-Backed Notes shall be deemed at any time to have a principal amount in Canadian Dollars equal
to the Equivalent Amount at such time of the principal amount thereof in U.S. Dollars.

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ARTICLE 3

COVENANTS AND ACKNOWLEDGMENTS

Section 3.1 Covenants.

       The Trust hereby covenants in favour of the Indenture Trustee and the Series 2010-1
Noteholders that:

	 	(a)	 	Provision of Information. Upon the reasonable request to the Trust of any
Series 2010-1 Noteholder who has provided current contact details to the Financial
Services Agent, the Trust shall deliver or make available to each such Series 2010-1
Noteholder, promptly following receipt of same, all such notices, information, reports,
statements and other documentation as the Trust may receive pursuant to the Purchase
Agreement or the Financial Services Agreement or provide to the Indenture Trustee
pursuant to the Trust Indenture and which are not otherwise publicly available;
	 
	 	(b)	 	Termination of Servicer or other Parties and New Programme Agreements. The
Trust shall not (i) terminate PHH VMS as Servicer under the Purchase Agreement or
designate and appoint a Replacement Servicer thereunder; (ii) terminate PHH VMS as
Financial Services Agent under the Financial Services Agreement, (iii) terminate the
Paying Agent, or (iv) enter into any additional Related Programme Agreements with
respect to Series 2010-1 after the date hereof, except in each case, where (x) it has
been directed to do so by the Series 2010-1 Noteholders by Extraordinary Resolution
notice of which has been concurrently (or previously) been provided to the Related
Rating Agencies, or (y) such action satisfies the Rating Agency Condition in respect of
DBRS and of which not less than 10 Business Day notice has been give to Moody’s (and in
the case of the appointment of a Replacement Servicer, such Replacement Servicer is the
Back-Up Servicer (and/or a Substitute Servicer appointing pursuant to the Back-Up
Servicer Agreement) or an established financial institution having a net worth of at
least $50,000,000 and whose regular business includes the servicing of contracts
similar to the contracts included in the Portfolio of Assets);
	 
	 	(c)	 	Notification of Certain Events. The Trust will promptly advise each Series
2010-1 Noteholder who has provided current contact details to the Financial Services
Agent and the Related Rating Agencies, by written notice (in reasonable detail), upon
becoming aware of the occurrence of any of the following:

	 	(i)	 	an Event of Termination under the Purchase Agreement;
	 
	 	(ii)	 	a Related Event of Default in respect of the Series
2010-1 Notes;
	 
	 	(iii)	 	the termination or resignation of (w) the Issuer
Trustee as trustee of the Trust; (x) the Indenture Trustee under the Trust
Indenture; (y) the

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	 	 	 	Financial Services Agent under the Financial Services Agreement; or (z)
the Financial Services Sub-Agent under the Financial Services Sub-Agency
Agreement; and

	 	(iv)	 	the receipt from the Seller of notice of its
intention to exercise its rights under Section 7.3 of the Purchase
Agreement; and

	 	(d)	 	Eligible Accounts. If at any time an institution maintaining one of the Series
Accounts ceases to be an Eligible Institution, the Trust will, within 10 Business Days,
move such Series Account to an Eligible Institution.
	 
	 	(e)	 	Swap Agreements. Without limiting Section 2.1(bb)(ii), if at any time the Swap
Agreement is terminated prior to the payment in full of all principal and interest
owing in respect of the Class A-1b Asset-Backed Notes, the Trust shall use all
reasonable commercial efforts to enter into, as soon as reasonably practicable, a
replacement currency swap agreement which satisfies the Rating Agency Condition.

Section 3.2 Noteholder Agreements and Acknowledgments.

       By acceptance of any Series 2010-1 Note (other than a Class A-2a Asset-Backed Note) (including
any beneficial ownership of any such 2010-1 Notes held through the Book-Entry System), the
Noteholder thereof specifically agrees with and represents and acknowledges to the Trust, the
Indenture Trustee and the Paying Agent that:

	 	(a)	 	no transfer of such Note will be made unless the registration and prospectus
requirements of all applicable securities laws are complied with, or such transfer is
otherwise exempt from any registration and prospectus requirements of all applicable
securities laws;
	 
	 	(b)	 	Class A-1b Asset-Backed Notes will bear a legend to the following effect unless
determined otherwise by the Trust:
	 
	 	 	 	THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933 AS AMENDED (THE “1933
ACT”) OR ANY STATE SECURITIES LAWS. NONE OF THIS CERTIFICATE, SUCH
SECURITIES, OR ANY INTEREST OR PARTICIPATION HEREIN OR THEREIN MAY
BE REOFFERED, SOLD, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED OF
IN THE ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS
EXEMPT FROM, OR NOT SUBJECT TO, REGISTRATION.

- 14 -

 

	 	 	 	THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO
OFFER, SELL, PLEDGE OR OTHERWISE TRANSFER THIS CERTIFICATE ONLY IN
ACCORDANCE WITH THE REQUIREMENTS OF THE TRUST INDENTURE, (A)(1) TO A
PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED
INSTITUTIONAL BUYER WITHIN THE MEANING OF RULE 144A UNDER THE 1933
ACT, PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER, IN A TRANSACTION MEETING THE
REQUIREMENTS OF RULE 144A UNDER THE 1933 ACT OR (2) IN AN OFFSHORE
TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S
UNDER THE 1933 ACT AND, IN THE CASE OF CLAUSE (1), THAT (U) IS A
QUALIFIED PURCHASER WITHIN THE MEANING OF SECTION 3(c)(7) OF THE
INVESTMENT COMPANY ACT, (V) WAS NOT FORMED FOR THE PURPOSE OF
INVESTING IN THE TRUST (EXCEPT WHEN EACH BENEFICIAL OWNER OF THE
PURCHASER IS A QUALIFIED PURCHASER), (W) UNDERSTANDS AND AGREES THAT
THE TRUST MAY RECEIVE A LIST OF PARTICIPANTS IN THE SECURITIES FROM
ONE OR MORE BOOK-ENTRY DEPOSITORIES, (X) IS NOT A BROKER-DEALER THAT
OWNS AND INVESTS ON A DISCRETIONARY BASIS LESS THAN U.S.$25,000,000
IN SECURITIES OF UNAFFILIATED ISSUERS, (Y) IS NOT A PENSION,
PROFIT-SHARING OR OTHER RETIREMENT TRUST FUND OR PLAN IN WHICH THE
PARTNERS, BENEFICIARIES OR PARTICIPANTS OR AFFILIATES MAY DESIGNATE
THE PARTICULAR INVESTMENT TO BE MADE AND (Z) HAS RECEIVED THE
NECESSARY CONSENT FROM ITS BENEFICIAL OWNERS WHEN THE PURCHASER IS A
PRIVATE INVESTMENT COMPANY FORMED ON OR BEFORE APRIL 30, 1996, AND
IN A TRANSACTION THAT MAY BE EFFECTED WITHOUT LOSS OF ANY APPLICABLE
INVESTMENT COMPANY ACT EXEMPTION OR EXCLUSION, (B) IN A PRINCIPAL
AMOUNT OF NOT LESS THAN THE MINIMUM DENOMINATION SET FORTH IN THE
INDENTURE AND (C) IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS
OF THE STATES OF THE UNITED STATES OR OTHER APPLICABLE JURISDICTION.
ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND
EFFECT, WILL BE VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER ANY
RIGHTS TO

- 15 -

 

	 	 	 	THE TRANSFEREE, NOTWITHSTANDING ANY INSTRUCTIONS TO THE CONTRARY TO THE
TRUST, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. THE HOLDER OF THIS
CERTIFICATE WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY
ANY PURCHASER FROM IT OF THIS CERTIFICATE OF THE RESALE RESTRICTIONS
SET FORTH HEREIN AND IN THE INDENTURE.

	 	(c)	 	(i) no prospectus or other public offering document relating to any Class of
Notes (other than the Class A-2a Asset-Backed Notes) has been delivered under any
applicable securities laws, (ii) no other offering document has been delivered to such
Noteholder in connection with the offering or issuance of the Notes held by such
Noteholder, other than (A) the private placement memorandum of the Trust in respect of
any Class A-1b Asset-Backed Notes held by such Noteholder, and (B) the offering
memorandum of the Trust for private placements in Alberta in respect of any Class A-1a
Asset-Backed Notes held by such Noteholder or for private placements in Ontario in
respect of any Class A-2b Asset-Backed Notes or Class B Asset-Backed Notes held by such
Noteholder, (iii) the Noteholder agrees that it has received a copy of the applicable
completed final prospectus (including prospectus supplement), private placement
memorandum or offering memorandum pertaining to the Class of Notes which has been
purchased, (iv) the Notes (other than the Class A-2a Asset-Backed Notes) are being sold
on a private placement basis exempt from the prospectus requirements of applicable
securities laws and (v) the resale of the Notes (other than the Class A-2a Asset-Backed
Notes) may be restricted under applicable securities laws;

	 	(d)	 	with regard to any Class A-1b Asset-Backed Note initially sold to a U.S.
investor:

	 	(i)	 	such Noteholder is a “qualified institutional buyer”
(a “Qualified Institutional Buyer”) as defined in Rule 144A (“Rule 144A”)
under the Securities Act of 1933, as amended (the “1933 Act”) and is aware
that the seller of such Class A-1b Asset-Backed Note may be relying on the
exemption from the registration requirements of the 1933 Act provided by
Rule 144A and is acquiring such Class A-1b Asset-Backed Note for its own
account or for the account of one or more qualified institutional buyers
for whom it is authorized to act;
	 
	 	(ii)	 	such Noteholder understands that such Class A-1b
Asset-Backed Note has not been registered under the 1933 Act, and that, if
in the future it decides to offer, resell, pledge or otherwise transfer
such Class A-1b Asset-Backed Note, such Class A-1b Asset-Backed Note may
be offered, resold, pledged or otherwise transferred only to a person
which the seller reasonably believes is a Qualified Institutional Buyer
that is purchasing such Class A-1b Asset-Backed Note for its own

- 16 -

 

	 	 	 	account or for the account of a Qualified Institutional Buyer to which
notice is given that the transfer is being made in reliance on Rule
144A, in each case in compliance with the requirements of this Trust
Indenture;
	 
	 	(iii)	 	such Noteholder understands that such Class A-1b
Asset-Backed Note may be offered, resold, pledged or otherwise transferred
only to a person that is a qualified purchaser within the meaning of
section 3(c)(7) of the United States Investment Company Act of 1940, as
amended (the “Investment Company Act”), was not formed for the purpose of
investing in the Trust (except when each beneficial owner of the purchaser
is a qualified purchaser), understands and agrees that the Trust may
receive a list of participants in the securities from one or more
book-entry depositories, is not a broker-dealer that owns and invests on a
discretionary basis less than U.S.$25,000,000 in securities of
unaffiliated issuers, is not a pension, profit-sharing or other retirement
trust fund or plan in which the partners, beneficiaries or participants or
affiliates may designate the particular investment to be made, and has
received the necessary consent from its beneficial owners when the
purchaser is a private investment company formed on or before April 30,
1996, and in a transaction that may be effected without loss of any
applicable Investment Company Act exemption or exclusion;
	 
	 	(iv)	 	such Noteholder is duly authorized to purchase such
Class A-1b Asset-Backed Note and its purchase of investments having the
characteristics of such Class A-1b Asset-Backed Note, is authorized under,
and not directly or indirectly in contravention of, any law, charter,
trust instrument or other operative document, investment guidelines or
list of permissible or impermissible investments that is applicable to the
Noteholder;
	 
	 	(v)	 	such Noteholder understands that each holder of a
Class A-1b Asset-Backed Note, by virtue of its acceptance thereof, assents
to the terms, provisions and conditions of this Trust Indenture; and
	 
	 	(vi)	 	in the event that the transfer of a Class A-1b
Asset-Backed Note is not to be made through a transfer of beneficial
ownership through the Book-Entry System, the prospective transferee shall
make such certifications to the Trust, the Indenture Trustee and the
Paying Agent in writing as may be required in order to assure compliance
with the 1933 Act and state securities laws;

	 	(e)	 	as a further condition to the registration of any sale, transfer, assignment,
participation, pledge or other disposition or encumbrance of a Series 2010-1 Note

- 17 -

 

	 	 	 	(other than transfers of beneficial ownership through the Book-Entry System, in
which prospective transferees will be deemed to so represent when it becomes a
holder), the prospective transferee of such Note will be required to represent to
the Indenture Trustee, the Paying Agent and the Trust the following, unless
determined otherwise by the Trust (as certified to the Indenture Trustee in an
Officer’s Certificate):

	 	(i)	 	it understands that no subsequent transfer of the
Note is permitted unless the proposed transferee complies with the
requirements of this section; and
	 
	 	(ii)	 	it understands that any purported transfer of the
Note (or any interest therein) in contravention of any of the restrictions
and conditions contained in this Section 3.2 will be null and void, and
the purported transferee in any such purported transfer will not be
recognized by the Trust or any other person as a Noteholder for any
purpose; and

	 	(f)	 	that it has been, and may in the future be, entrusted with certain information
which is non-public, confidential, or proprietary in nature, and that,

	 	(i)	 	without the prior written consent of the Seller,
except as required by law or, after any Related Event of Default, to
enforce its rights and remedies hereunder, it will keep all Information
confidential and will not disclose any Information to any one other than
such Noteholder or its affiliates, or their respective directors,
officers, employees, agents, advisors or representatives (collectively,
“Representatives”), in any manner whatsoever, in whole or in part, and
will not use any Information and will ensure that its Representatives do
no use any Information, for any purpose other than for the purpose of
evaluating and administering such Noteholder’s ownership of Notes;
	 
	 	(ii)	 	“Information” means any and all information, data,
documents and materials relating to the business and operations of the
Seller or its other affiliates (including any other entity identified by
the Seller in writing as an affiliate), whether oral, in writing or other
tangible or intangible form, including any information relating to
accounts, Obligations, assets, profitability, methods of operation,
vendors, service providers, suppliers, systems, procedures, algorithms or
computer hardware or software, and other confidential information of the
Seller or its affiliates, including any confidential information of third
parties in the possession of the Seller or its affiliates, and any copies,
analyses, compilations, forecasts, studies, reports, memoranda, notes or
other documents prepared by the Noteholder or its affiliates or the
Representatives that contain or are based, in whole or in part, on such
information, including the computer tapes or files upon which

- 18 -

 

	 	 	 	such information is stored, and including further any reports or other
information provided from time to time by the Seller under the Purchase
Agreement or by the Trust under the Trust Indenture, but Information
will not include any item of Information, which: (w) is or becomes
publicly available (either to the general public or to any relevant
trade or industry group), other than as a result of a breach of this
Agreement by such Noteholder, its affiliates or Representatives; (x) is
or becomes available to the Noteholder, its affiliates or
Representatives on a non-confidential basis, provided that such
Noteholder its affiliates or Representatives has no knowledge or notice
that the source of such information was bound by a confidentiality
agreement with respect to such information; (y) has been otherwise
independently acquired or developed by the Noteholder, its affiliates or
Representatives without the aid, application or use of any Information;
or (z) is known by the Noteholder, its affiliates or Representatives
without restriction prior to its disclosure to the Noteholder. The
burden for establishing that any Information falls within one of the
foregoing exceptions shall be the responsibility of the Noteholder; and
	 
	 	(iii)	 	if such Noteholder, its affiliates, or
Representatives becomes legally compelled to disclose any of the
Information, the Noteholder will provide the Seller with prompt notice
(unless the Noteholder is prohibited by law or court order from doing so)
so that the Seller may seek a protective order or other appropriate remedy
and/or waive compliance with the provisions of this confidentiality
provision. If such protective order or other remedy is not obtained, or
if the Seller waives compliance with the provisions of this
confidentiality provision, the Noteholder will furnish only that portion
of the Information which the Noteholder is advised by its counsel is
legally required and will take commercially necessary steps to obtain
assurance that confidential treatment will be accorded the Information.
Notwithstanding the foregoing, the Noteholder may (without notifying the
Seller) disclose Information to any regulatory authority having
jurisdiction over the Noteholder in the course of any routine regulatory
examination of such Noteholder conducted by such authority;
provided, however, that such authority is notified of the
confidential nature of the Information and of the need to keep the
Information confidential.

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ARTICLE 4

GENERAL

Section 4.1 Confirmation of Trust Indenture.

     The Trust Indenture as supplemented by this Supplemental Indenture, shall and does continue in
full force and effect, otherwise unamended, and the Trust Indenture, as so supplemented together
with all the grants created thereby, are hereby ratified and confirmed.

Section 4.2 Obligations of the Trust.

     Nothing contained in this Supplemental Indenture shall in any way modify or relieve the Trust
from its obligations to carry out its covenants contained in the Trust Indenture.

Section 4.3 Acceptance.

     The Indenture Trustee hereby accepts the trust in this Supplemental Indenture declared and
provided for and agrees to perform the same on the terms and conditions herein set forth.

Section 4.4 Limitation of Liability of Issuer Trustee.

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

- 20 -

 

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

Section 4.5 Execution in Counterparts.

     This Supplemental Indenture may be executed in several counterparts, each of which when so
executed shall be deemed to be an original and the counterparts together shall constitute one and
the same instrument.

Section 4.6 Formal Date.

     For purpose of convenience, this Supplemental Indenture may be referred to as bearing a formal
date of January 27, 2010, irrespective of the actual date of its execution.

Section 4.7 Delivery of Executed Copies.

     Each party acknowledges delivery of an executed copy of this Supplemental Indenture.

Section 4.8 Rule 144A Information.

     For so long as any of the Class A-1b Asset-Backed Notes are “restricted securities” within the
meaning of Rule 144(a)(3) under the 1933 Act, the Trust agrees to provide to any Noteholder of such
Class A-1b Asset-Backed Notes and to any prospective purchaser of such Class A-1b Asset-Backed
Notes designated by such a Noteholder, upon the request of such Noteholder or prospective
purchaser, the information specified below, which is intended to satisfy the condition set forth in
Rule 144A(d)(4) under the 1933 Act:

	 	(a)	 	the Private Placement Memorandum dated January 25, 2010 and any amendments and
supplements thereto;
	 
	 	(b)	 	the Related Programme Agreements and any amendments thereto;
	 
	 	(c)	 	copies of each statement or report sent to Noteholders pursuant to Section
3.1(a) during the 12 months immediately prior to such request; and
	 
	 	(d)	 	such other information as is reasonably available to the Trust and is directly
related to the payments on the Notes and the servicing and performance of the Related
Collateral.

- 21 -

 

Any recipient of information provided pursuant to this Section shall agree that such information
shall not be disclosed or used for any purpose other than the evaluation of such Notes by the
prospective purchaser. The Trust, the Indenture Trustee and the Paying Agent shall have no
responsibility for the sufficiency under Rule 144A of any information so provided by the Trust to
any Noteholder of Class A-1b Asset-Backed Notes or any prospective purchaser of such Notes.

[Signature page follows]

- 22 -

 

         IN WITNESS WHEREOF the parties hereto have duly executed this Supplemental Indenture.

	 	 	 	 	 
	 	BNY TRUST COMPANY OF CANADA in its 

capacity as trustee of
FLEET LEASING RECEIVABLES TRUST, by its 

Financial Services

Agent, PHH VEHICLE MANAGEMENT SERVICES INC.

 	 
	 	By:  	/s/ 	Mark E. Johnson 	 
	 	 	Name:  	Mark E. Johnson 	 
	 	 	Title:  	Senior Vice-President and Treasurer 	 
	 	

COMPUTERSHARE TRUST COMPANY OF

CANADA, as Indenture Trustee and
Paying Agent

 	 
	 	By:  	/s/ David Ha	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 	By:  	/s/
Michelle Schultz
	 
	 	 	Authorized Signatory 	 
	 	 	 	 
	 

Signature Page to Series 2010-1 Supplemental Indenture

 

 

SCHEDULE A-1a

			
	Issue Date: [ ]
	 	No.  [ ]

FLEET LEASING RECEIVABLES TRUST

SERIES 2010-1 CLASS A-1A ASSET-BACKED NOTE

CUSIP # [ ]

FLEET LEASING RECEIVABLES TRUST (the “Trust”) for value received and subject to the following,
hereby promises to pay to or to the order of

CDS & CO.

the
principal sum of $[ ] in lawful money of Canada or such other amount as may from time to time
be reflected in the records of the Trust (or its agents) (which records shall be prima facie
evidence of the principal amount outstanding hereunder in the absence of manifest mathematical
error) with interest on the outstanding principal amount hereof at a per annum rate, based on a
year of 365 days, equal to 1.08354%. Payments of interest shall be payable in accordance with the
provisions of the Trust Indenture (as defined below). Except to the extent repaid prior to such
date in accordance with the Trust Indenture, the outstanding principal amount of the Series 2010-1
Class A-1a Asset-Backed Notes shall be due and payable on the maturity date of the Series 2010-1
Class A-1a Asset-Backed Notes. The maturity date of this Series 2010-1 Class A-1a Asset-Backed
Note shall be February 15, 2011. Capitalized terms used in this Note and not defined herein shall
have the meanings assigned thereto in the Trust Indenture.

This Series 2010-1 Class A-1a Asset-Backed Note is one of the duly authorized Series 2010-1 Class
A-1a Asset-Backed Notes of the Trust issued under the trust indenture made as of November 16, 2009,
and the supplemental indenture made as of January 27, 2010 relating to the Series 2010-1 Notes,
among the Trust and Computershare Trust Company of Canada, as Indenture Trustee (the said trust
indenture and supplemental indenture, as further amended and supplemented by instruments
supplemental thereto, are hereinafter referred to as the “Trust Indenture”). Reference is hereby
made to the Trust Indenture for the rights of the holders of the Series 2010-1 Notes issued and to
be issued thereunder. The Issuer Trustee has entered into the Trust Indenture and issued this
Series 2010-1 Class A-1a Asset-Backed Note in its capacity as trustee of the Trust and not in its
personal capacity. The liability of the Issuer Trustee hereunder and under the Trust Indenture is
limited to the Related Collateral. No other property or assets of the Issuer Trustee, whether
owned by it in its personal capacity or otherwise, will be subject to levy, execution or other
enforcement procedures with regard to any obligation hereunder or under the Trust Indenture. This
Series 2010-1 Class A-1a Asset-Backed Note shall be governed by and construed in accordance with
the laws of the Province of Ontario.

Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to the Trust or its agent for registration of transfer, exchange or payment,
and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such
other name as is requested by an authorized representative of CDS (and any payment is made to CDS &
CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered holder hereof, CDS & CO., has a property interest in the securities represented by this
certificate herein and it is a violation of its rights for another person to hold, transfer or deal
with this certificate. This certificate is issued pursuant to a Book Entry Only Securities
Services Agreement between the Trust and CDS, as such agreement may be replaced or amended from
time to time.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE
SECURITY BEFORE [INSERT DATE THAT IS FOUR MONTHS AND ONE DAY AFTER ISSUANCE].

 

 

	 	 	 	 	 	 	 
	Countersigned by Computershare Trust Company of Canada, as
Indenture Trustee	 	BNY TRUST COMPANY OF CANADA, in its capacity as trustee of
FLEET LEASING RECEIVABLES TRUST
	 	 	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 Authorized Signing Officer
	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 
	Date of Countersignature:

	 	 	 	By:	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	 Authorized Signing Officer

- 2 - 

 

SCHEDULE A-1b

			
	Issue Date: [ ]
	 	No. [ ]

FLEET LEASING RECEIVABLES TRUST

SERIES 2010-1 CLASS A-1B ASSET-BACKED NOTE

CUSIP # [ ]

FLEET LEASING RECEIVABLES TRUST (the “Trust”) for value received and subject to the following,
hereby promises to pay to or to the order of

CDS & CO.

the principal sum of $[ ] in lawful money of the United States or such other amount as may from
time to time be reflected in the records of the Trust (or its agents) (which records shall be prima
facie evidence of the principal amount outstanding hereunder in the absence of manifest
mathematical error) with interest on the outstanding principal amount hereof at a per annum rate,
based on a year of 360 days, equal to 0.46945%. Payments of interest shall be payable in
accordance with the provisions of the Trust Indenture (as defined below). Except to the extent
repaid prior to such date in accordance with the Trust Indenture, the outstanding principal amount
of the Series 2010-1 Class A-1b Asset-Backed Notes shall be due and payable on the maturity date of
the Series 2010-1 Class A-1b Asset-Backed Notes. The maturity date of this Series 2010-1 Class
A-1b Asset-Backed Note shall be February 15, 2011. Capitalized terms used in this Note and not
defined herein shall have the meanings assigned thereto in the Trust Indenture.

This Series 2010-1 Class A-1b Asset-Backed Note is one of the duly authorized Series 2010-1 Class
A-1b Asset-Backed Notes of the Trust issued under the trust indenture made as of November 16, 2009,
and the supplemental indenture made as of January 27, 2010 relating to the Series 2010-1 Notes,
among the Trust and Computershare Trust Company of Canada, as Indenture Trustee (the said trust
indenture and supplemental indenture, as further amended and supplemented by instruments
supplemental thereto, are hereinafter referred to as the “Trust Indenture”). Reference is hereby
made to the Trust Indenture for the rights of the holders of the Series 2010-1 Notes issued and to
be issued thereunder. The Issuer Trustee has entered into the Trust Indenture and issued this
Series 2010-1 Class A-1b Asset-Backed Note in its capacity as trustee of the Trust and not in its
personal capacity. The liability of the Issuer Trustee hereunder and under the Trust Indenture is
limited to the Related Collateral. No other property or assets of the Issuer Trustee, whether
owned by it in its personal capacity or otherwise, will be subject to levy, execution or other
enforcement procedures with regard to any obligation hereunder or under the Trust Indenture. This
Series 2010-1 Class A-1b Asset-Backed Note shall be governed by and construed in accordance with
the laws of the Province of Ontario.

Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to the Trust or its agent for registration of transfer, exchange or payment,
and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such
other name as is requested by an authorized representative of CDS (and any payment is made to CDS &
CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered holder hereof, CDS & CO., has a property interest in the securities represented by this
certificate herein and it is a violation of its rights for another person to hold, transfer or deal
with this certificate. This certificate is issued pursuant to a Book Entry Only Securities Services
Agreement between the Trust and CDS, as such agreement may be replaced or amended from time to
time.

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933 AS AMENDED (THE “1933 ACT”) OR ANY STATE SECURITIES LAWS. NONE OF THIS CERTIFICATE, SUCH
SECURITIES, OR ANY INTEREST OR

 

 

PARTICIPATION HEREIN OR THEREIN MAY BE REOFFERED, SOLD, TRANSFERRED, PLEDGED, OR OTHERWISE DISPOSED
OF IN THE ABSENCE OF SUCH REGISTRATION, UNLESS SUCH TRANSACTION IS EXEMPT FROM, OR NOT SUBJECT TO,
REGISTRATION.

THE HOLDER OF THIS CERTIFICATE BY ITS ACCEPTANCE HEREOF AGREES TO OFFER, SELL, PLEDGE OR OTHERWISE
TRANSFER THIS CERTIFICATE ONLY IN ACCORDANCE WITH THE REQUIREMENTS OF THE TRUST INDENTURE, (A)(1)
TO A PERSON WHOM THE SELLER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER WITHIN THE
MEANING OF RULE 144A UNDER THE 1933 ACT, PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A
QUALIFIED INSTITUTIONAL BUYER, IN A TRANSACTION MEETING THE REQUIREMENTS OF RULE 144A UNDER THE
1933 ACT OR (2) IN AN OFFSHORE TRANSACTION COMPLYING WITH RULE 903 OR RULE 904 OF REGULATION S
UNDER THE 1933 ACT AND, IN THE CASE OF CLAUSE (1), THAT (U) IS A QUALIFIED PURCHASER WITHIN THE
MEANING OF SECTION 3(c)(7) OF THE INVESTMENT COMPANY ACT, (V) WAS NOT FORMED FOR THE PURPOSE OF
INVESTING IN THE TRUST (EXCEPT WHEN EACH BENEFICIAL OWNER OF THE PURCHASER IS A QUALIFIED
PURCHASER), (W) UNDERSTANDS AND AGREES THAT THE TRUST MAY RECEIVE A LIST OF PARTICIPANTS IN THE
SECURITIES FROM ONE OR MORE BOOK-ENTRY DEPOSITORIES, (X) IS NOT A BROKER-DEALER THAT OWNS AND
INVESTS ON A DISCRETIONARY BASIS LESS THAN U.S.$25,000,000 IN SECURITIES OF UNAFFILIATED ISSUERS,
(Y) IS NOT A PENSION, PROFIT-SHARING OR OTHER RETIREMENT TRUST FUND OR PLAN IN WHICH THE PARTNERS,
BENEFICIARIES OR PARTICIPANTS OR AFFILIATES MAY DESIGNATE THE PARTICULAR INVESTMENT TO BE MADE AND
(Z) HAS RECEIVED THE NECESSARY CONSENT FROM ITS BENEFICIAL OWNERS WHEN THE PURCHASER IS A PRIVATE
INVESTMENT COMPANY FORMED ON OR BEFORE APRIL 30, 1996, AND IN A TRANSACTION THAT MAY BE EFFECTED
WITHOUT LOSS OF ANY APPLICABLE INVESTMENT COMPANY ACT EXEMPTION OR EXCLUSION, (B) IN A PRINCIPAL
AMOUNT OF NOT LESS THAN THE MINIMUM DENOMINATION SET FORTH IN THE INDENTURE AND (C) IN ACCORDANCE
WITH ALL APPLICABLE SECURITIES LAWS OF THE STATES OF THE UNITED STATES OR OTHER APPLICABLE
JURISDICTION. ANY TRANSFER IN VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE
VOID AB INITIO AND WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE TRANSFEREE, NOTWITHSTANDING ANY
INSTRUCTIONS TO THE CONTRARY TO THE TRUST, THE INDENTURE TRUSTEE OR ANY INTERMEDIARY. THE HOLDER
OF THIS CERTIFICATE WILL, AND EACH SUBSEQUENT HOLDER IS REQUIRED TO, NOTIFY ANY PURCHASER FROM IT
OF THIS CERTIFICATE OF THE RESALE RESTRICTIONS SET FORTH HEREIN AND IN THE INDENTURE.

	 	 	 	 	 	 	 
	Countersigned by Computershare Trust Company of Canada, as
Indenture Trustee	 	BNY TRUST COMPANY OF CANADA, in its capacity as trustee of
FLEET LEASING
RECEIVABLES TRUST
	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 Authorized Signing Officer
	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 
	Date of Countersignature:

	 	 	 	By:	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	 Authorized Signing Officer

- 2 -

 

SCHEDULE A-2a

			
	Issue Date: [ ]
	 	No. [ ]

FLEET LEASING RECEIVABLES TRUST

SERIES 2010-1 CLASS A-2A ASSET-BACKED NOTE

CUSIP # [ ]

FLEET LEASING RECEIVABLES TRUST (the “Trust”) for value received and subject to the following,
hereby promises to pay to or to the order of

CDS & CO.

the principal sum of $[ ] in lawful money of Canada or such other amount as may from time to time
be reflected in the records of the Trust (or its agents) (which records shall be prima facie
evidence of the principal amount outstanding hereunder in the absence of manifest mathematical
error) with interest on the outstanding principal amount hereof at a per annum rate, based on a
year of 365 days, equal to 2.409%. Payments of interest shall be payable in accordance with the
provisions of the Trust Indenture (as defined below). Except to the extent repaid prior to such
date in accordance with the Trust Indenture, the outstanding principal amount of the Series 2010-1
Class A-2a Asset-Backed Notes shall be due and payable on the maturity date of the Series 2010-1
Class A-2a Asset-Backed Notes. The maturity date of this Series 2010-1 Class A-2a Asset-Backed
Note shall be November 15, 2013. Capitalized terms used in this Note and not defined herein shall
have the meanings assigned thereto in the Trust Indenture.

This Series 2010-1 Class A-2a Asset-Backed Note is one of the duly authorized Series 2010-1 Class
A-2a Asset-Backed Notes of the Trust issued under the trust indenture made as of November 16, 2009,
and the supplemental indenture made as of January 27, 2010 relating to the Series 2010-1 Notes,
among the Trust and Computershare Trust Company of Canada, as Indenture Trustee (the said trust
indenture and supplemental indenture, as further amended and supplemented by instruments
supplemental thereto, are hereinafter referred to as the “Trust Indenture”). Reference is hereby
made to the Trust Indenture for the rights of the holders of the Series 2010-1 Notes issued and to
be issued thereunder. The Issuer Trustee has entered into the Trust Indenture and issued this
Series 2010-1 Class A-2a Asset-Backed Note in its capacity as trustee of the Trust and not in its
personal capacity. The liability of the Issuer Trustee hereunder and under the Trust Indenture is
limited to the Related Collateral. No other property or assets of the Issuer Trustee, whether
owned by it in its personal capacity or otherwise, will be subject to levy, execution or other
enforcement procedures with regard to any obligation hereunder or under the Trust Indenture. This
Series 2010-1 Class A-2a Asset-Backed Note shall be governed by and construed in accordance with
the laws of the Province of Ontario.

Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to the Trust or its agent for registration of transfer, exchange or payment,
and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such
other name as is requested by an authorized representative of CDS (and any payment is made to CDS &
CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered holder hereof, CDS & CO., has a property interest in the securities represented by this
certificate herein and it is a violation of its rights for another person to hold, transfer or deal
with this certificate. This certificate is issued pursuant to a Book Entry Only Securities
Services Agreement between the Trust and CDS, as such agreement may be replaced or amended from
time to time.

 

 

	 	 	 	 	 	 	 
	Countersigned by Computershare Trust Company
of Canada, as
 Indenture Trustee	 	
BNY TRUST COMPANY OF CANADA, in its capacity as trustee of
 FLEET LEASING RECEIVABLES TRUST
	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 Authorized Signing Officer
	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 
	Date of Countersignature:

	 	 	 	By:	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	 Authorized Signing Officer

- 2 -

 

SCHEDULE A-2b

			
	Issue Date: [ ]
	 	No. [ ]

FLEET LEASING RECEIVABLES TRUST

SERIES 2010-1 CLASS A-2B ASSET-BACKED NOTE

CUSIP # [ ]

FLEET LEASING RECEIVABLES TRUST (the “Trust”) for value received and subject to the following,
hereby promises to pay to or to the order of

CDS & CO.

the principal sum of $[ ] in lawful money of Canada or such other amount as may from time to time
be reflected in the records of the Trust (or its agents) (which records shall be prima facie
evidence of the principal amount outstanding hereunder in the absence of manifest mathematical
error) with interest on the outstanding principal amount hereof at a per annum rate, based on a
year of 365 days, equal to 2.175%. Payments of interest shall be payable in accordance with the
provisions of the Trust Indenture (as defined below). Except to the extent repaid prior to such
date in accordance with the Trust Indenture, the outstanding principal amount of the Series 2010-1
Class A-2b Asset-Backed Notes shall be due and payable on the maturity date of the Series 2010-1
Class A-2b Asset-Backed Notes. The maturity date of this Series 2010-1 Class A-2b Asset-Backed
Note shall be November 15, 2013. Capitalized terms used in this Note and not defined herein shall
have the meanings assigned thereto in the Trust Indenture.

This Series 2010-1 Class A-2b Asset-Backed Note is one of the duly authorized Series 2010-1 Notes
of the Trust issued under the trust indenture made as of November 16, 2009, and the supplemental
indenture made as of January 27, 2010 relating to the Series 2010-1 Notes, among the Trust and
Computershare Trust Company of Canada, as Indenture Trustee (the said trust indenture and
supplemental indenture, as further amended and supplemented by instruments supplemental thereto,
are hereinafter referred to as the “Trust Indenture”). Reference is hereby made to the Trust
Indenture for the rights of the holders of the Series 2010-1 Notes issued and to be issued
thereunder. The Issuer Trustee has entered into the Trust Indenture and issued this Series 2010-1
Class A-2b Asset-Backed Note in its capacity as trustee of the Trust and not in its personal
capacity. The liability of the Issuer Trustee hereunder and under the Trust Indenture is limited
to the Related Collateral. No other property or assets of the Issuer Trustee, whether owned by it
in its personal capacity or otherwise, will be subject to levy, execution or other enforcement
procedures with regard to any obligation hereunder or under the Trust Indenture. This Series
2010-1 Class A-2b Asset-Backed Note shall be governed by and construed in accordance with the laws
of the Province of Ontario.

Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to the Trust or its agent for registration of transfer, exchange or payment,
and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such
other name as is requested by an authorized representative of CDS (and any payment is made to CDS &
CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered holder hereof, CDS & CO., has a property interest in the securities represented by this
certificate herein and it is a violation of its rights for another person to hold, transfer or deal
with this certificate. This certificate is issued pursuant to a Book Entry Only Securities
Services Agreement between the Trust and CDS, as such agreement may be replaced or amended from
time to time.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE
SECURITY BEFORE [INSERT DATE THAT IS FOUR MONTHS AND ONE DAY AFTER ISSUANCE].

 

 

	 	 	 	 	 	 	 
	Countersigned by Computershare Trust Company
of Canada, as
Indenture Trustee	 	BNY TRUST COMPANY OF CANADA, in its capacity as trustee of
FLEET LEASING RECEIVABLES TRUST
	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 Authorized Signing Officer
	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 
	Date of Countersignature:

	 	 	 	By:	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	 Authorized Signing Officer

- 2 -

 

SCHEDULE B

			
	Issue Date: [ ]
	 	No. [ ]

FLEET LEASING RECEIVABLES TRUST

SERIES 2010-1 CLASS B ASSET-BACKED NOTE

CUSIP # [ ]

FLEET LEASING RECEIVABLES TRUST (the “Trust”) for value received and subject to the following,
hereby promises to pay to or to the order of

CDS & CO.

the principal sum of $[ ] in lawful money of Canada or such other amount as may from time to time
be reflected in the records of the Trust (or its agents) (which records shall be prima facie
evidence of the principal amount outstanding hereunder in the absence of manifest mathematical
error) with interest on the outstanding principal amount hereof at a per annum rate, based on a
year of 365 days, equal to 6.000%. Payments of interest shall be payable in accordance with the
provisions of the Trust Indenture (as defined below). Except to the extent repaid prior to such
date in accordance with the Trust Indenture, the outstanding principal amount of the Series 2010-1
Class B Asset-Backed Notes shall be due and payable on the maturity date of the Series 2010-1 Class
B Asset-Backed Notes. The maturity date of this Series 2010-1 Class B Asset-Backed Note shall be
January 15, 2018. Capitalized terms used in this Note and not defined herein shall have the
meanings assigned thereto in the Trust Indenture.

This Series 2010-1 Class B Asset-Backed Note is one of the duly authorized Series 2010-1 Class B
Asset-Backed Notes of the Trust issued under the trust indenture made as of November 16, 2009, and
the supplemental indenture made as of January 27, 2010 relating to the Series 2010-1 Notes, among
the Trust and Computershare Trust Company of Canada, as Indenture Trustee (the said trust indenture
and supplemental indenture, as further amended and supplemented by instruments supplemental
thereto, are hereinafter referred to as the “Trust Indenture”). Reference is hereby made to the
Trust Indenture for the rights of the holders of the Series 2010-1 Notes issued and to be issued
thereunder. The Issuer Trustee has entered into the Trust Indenture and issued this Series 2010-1
Class B Asset-Backed Note in its capacity as trustee of the Trust and not in its personal capacity.
The liability of the Issuer Trustee hereunder and under the Trust Indenture is limited to the
Related Collateral. No other property or assets of the Issuer Trustee, whether owned by it in its
personal capacity or otherwise, will be subject to levy, execution or other enforcement procedures
with regard to any obligation hereunder or under the Trust Indenture. This Series 2010-1 Class B
Asset-Backed Note shall be governed by and construed in accordance with the laws of the Province of
Ontario.

Unless this certificate is presented by an authorized representative of CDS Clearing and Depository
Services Inc. (“CDS”) to the Trust or its agent for registration of transfer, exchange or payment,
and any certificate issued in respect thereof is registered in the name of CDS & CO., or in such
other name as is requested by an authorized representative of CDS (and any payment is made to CDS &
CO. or to such other entity as is requested by an authorized representative of CDS), ANY TRANSFER,
PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL since the
registered holder hereof, CDS & CO., has a property interest in the securities represented by this
certificate herein and it is a violation of its rights for another person to hold, transfer or deal
with this certificate. This certificate is issued pursuant to a Book Entry Only Securities
Services Agreement between the Trust and CDS, as such agreement may be replaced or amended from
time to time.

UNLESS PERMITTED UNDER SECURITIES LEGISLATION, THE HOLDER OF THIS SECURITY MUST NOT TRADE THE
SECURITY BEFORE [INSERT DATE THAT IS FOUR MONTHS AND ONE DAY AFTER ISSUANCE].

 

 

	 	 	 	 	 	 	 
	Countersigned by Computershare Trust Company of Canada, as
Indenture Trustee	 	BNY TRUST COMPANY OF CANADA, in its capacity as trustee of
 FLEET LEASING RECEIVABLES TRUST
	 
	By:

	 	 	 	By:	 	 
	 

	 	 
	 	 	 	 
	 

	 	 Authorized Signing Officer
	 	 	 	 Authorized Signing Officer

	 	 	 	 	 	 	 
	Date of Countersignature:

	 	 	 	By:	 	 
	 

	 
	 	 	 	 
	 

	 	 	 	 	 	 Authorized Signing Officer

- 2 -

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