Document:

exv4w3

Exhibit 4.3

EXECUTION VERSION

 

AMENDED AND RESTATED

CREDIT AND SECURITY AGREEMENT

dated as of December 1, 2006

among

CAB EAST LLC,

CAB WEST LLC, and

FCALM, LLC,

as Borrowers,

U.S. BANK NATIONAL ASSOCIATION,

as Administrative Agent,

HTD LEASING LLC,

as Collateral Agent,

and

FORD MOTOR CREDIT COMPANY,

as Lender and as Servicer

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page	 
	ARTICLE I USAGE, DEFINITIONS AND INCORPORATION BY REFERENCE
	 	 	1	 
	Section 1.01 Usage, Definitions and Incorporation by Reference
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II THE REVOLVING FACILITY
	 	 	1	 
	Section 2.01 Amount and Terms of the Revolving Facility
	 	 	1	 
	Section 2.02 Appointment to Act as Borrower’s Agent
	 	 	3	 
	Section 2.03 Interest on the Revolving Facility
	 	 	3	 
	Section 2.04 Funds; Manner of Payment
	 	 	3	 
	Section 2.05 Calculation of Interest on the Revolving Facility and the Exchange Notes
	 	 	4	 
	 
	 	 	 	 
	ARTICLE III APPOINTMENT OF COLLATERAL AGENT AND GRANT OF SECURITY
	 	 	4	 
	Section 3.01 Appointment of Collateral Agent; Duties of Collateral Agent
	 	 	4	 
	Section 3.02 Security Interest
	 	 	6	 
	Section 3.03 Release of Collateral
	 	 	7	 
	Section 3.04 Dissolution of Collateral Agent
	 	 	8	 
	 
	 	 	 	 
	ARTICLE IV THE EXCHANGE NOTES
	 	 	8	 
	Section 4.01 Issuance of Exchange Notes; Form
	 	 	8	 
	Section 4.02 Issuance of Exchange Notes; Execution, Authentication and Delivery
	 	 	9	 
	Section 4.03 Exchange Noteholders Entitled to Benefits of this Agreement
	 	 	11	 
	Section 4.04 Registration; Registration of Transfer and Exchange
	 	 	11	 
	Section 4.05 Mutilated, Destroyed, Lost or Stolen Exchange Notes.

	 	 	14	 
	Section 4.06 Payment of Principal and Interest
	 	 	15	 
	Section 4.07 Cancellation of Exchange Notes
	 	 	16	 
	Section 4.08 Acceptance of Terms of this Agreement
	 	 	16	 
	 
	 	 	 	 
	ARTICLE V REPRESENTATIONS, WARRANTIES AND COVENANTS
	 	 	16	 
	Section 5.01 Existence
	 	 	17	 
	Section 5.02 Protection of Collateral
	 	 	17	 
	Section 5.03 Performance of Obligations; Servicing
	 	 	17	 
	Section 5.04 Negative Covenants
	 	 	18	 
	Section 5.05 Opinions as to Collateral
	 	 	18	 
	Section 5.06 Annual Statement as to Compliance
	 	 	19	 
	Section 5.07 Borrowers May Consolidate, etc., Only on Certain Terms
	 	 	19	 
	Section 5.08 Successor or Transferee
	 	 	20	 
	Section 5.09 No Unauthorized Activities
	 	 	20	 
	Section 5.10 Limitation on Obligations
	 	 	20	 
	Section 5.11 Further Instruments and Acts
	 	 	21	 
	Section 5.12 Representations and Warranties by the Borrowers as to Security Interest
	 	 	21	 
	Section 5.13 Audits
	 	 	22	 
	 
	 	 	 	 
	ARTICLE VI DEFAULTS AND REMEDIES
	 	 	22	 
	Section 6.01 Facility Default
	 	 	22	 

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	 	 	Page	 
	Section 6.02 Early Termination Event
	 	 	23	 
	Section 6.03 Revolving Facility Remedies
	 	 	23	 
	Section 6.04 Exchange Note Defaults
	 	 	24	 
	Section 6.05 Exchange Note Remedies
	 	 	25	 
	Section 6.06 Rights and Remedies Cumulative
	 	 	26	 
	Section 6.07 Delay or Omission Not a Waiver
	 	 	26	 
	Section 6.08 Waiver of Past Defaults
	 	 	26	 
	 
	 	 	 	 
	ARTICLE VII THE ADMINISTRATIVE AGENT
	 	 	27	 
	Section 7.01 Duties of the Administrative Agent
	 	 	27	 
	Section 7.02 Rights of Administrative Agent
	 	 	29	 
	Section 7.03 Individual Rights of Administrative Agent
	 	 	29	 
	Section 7.04 Administrative Agent’s Disclaimer
	 	 	29	 
	Section 7.05 Compensation
	 	 	30	 
	Section 7.06 Replacement of Administrative Agent
	 	 	30	 
	Section 7.07 Successor Administrative Agent by Merger, Conversion or Transfer
	 	 	31	 
	Section 7.08 Eligibility; Disqualification
	 	 	31	 
	 
	 	 	 	 
	ARTICLE VIII INDEMNIFICATION
	 	 	32	 
	Section 8.01 Indemnification of Administrative Agent and Collateral Agent
	 	 	32	 
	Section 8.02 Indemnification Procedures
	 	 	32	 
	Section 8.03 Survival
	 	 	32	 
	 
	 	 	 	 
	ARTICLE IX AMENDMENTS
	 	 	33	 
	Section 9.01 Amendments Without Consent of Exchange Noteholders
	 	 	33	 
	Section 9.02 Amendments with Consent of Exchange Noteholders
	 	 	34	 
	Section 9.03 Tax Opinion Requirement
	 	 	34	 
	Section 9.04 Execution of Amendments
	 	 	34	 
	 
	 	 	 	 
	ARTICLE X CREDITORS’ RELATIONS
	 	 	35	 
	Section 10.01 Allocation of Collections; Intercreditor Agreement
	 	 	35	 
	Section 10.02 Application of Collections on the Revolving Facility Pool
	 	 	35	 
	Section 10.03 Application of Collections on the Reference Pools Where No Facility Default Has Occurred
	 	 	36	 
	Section 10.04 Application of Collections Following a Facility Default
	 	 	36	 
	Section 10.05 Modified Priorities Following Liquidation
	 	 	37	 
	Section 10.06 Application of Liquidation Proceeds
	 	 	37	 
	Section 10.07 Limited Recourse; Subordination of Claims
	 	 	38	 
	 
	 	 	 	 
	ARTICLE XI MISCELLANEOUS
	 	 	39	 
	Section 11.01 Compliance Certificates and Opinions, etc
	 	 	39	 
	Section 11.02 Form of Documents Delivered to Administrative Agent
	 	 	39	 
	Section 11.03 Notices, etc
	 	 	40	 
	Section 11.04 Alternate Payment and Notice Provisions
	 	 	41	 
	Section 11.05 Benefits of Agreement
	 	 	42	 
	Section 11.06 GOVERNING LAW; SUBMISSION TO JURISDICTION LAW
	 	 	42	 
	Section 11.07 Successors and Assigns
	 	 	42	 

ii

 

	 	 	 	 	 
	 	 	Page	 
	Section 11.08 Severability
	 	 	42	 
	Section 11.09 Counterparts
	 	 	42	 
	Section 11.10 Headings
	 	 	42	 
	Section 11.11 Borrower Obligations
	 	 	42	 
	Section 11.12 No Petition
	 	 	42	 

EXHIBITS

	 	 	 	 	 

	Exhibit A  —  Form of Exchange Note
	 	 	A-1	 
	Exhibit B  —  Form of UCC Notice of Security Interest
	 	 	B-1	 
	Exhibit C  —  Determination of Revolving Facility Interest Rate
	 	 	C-1	 
	Exhibit D  —  Form of Transferee Representation Letter
	 	 	D-1	 
	Exhibit E  —  Form of Power of Attorney in favor of the Collateral Agent Administrator
	 	 	E-1	 
	Exhibit F —  Form of Certificate of Security Agreement
	 	 	F-1	 

APPENDICES

Appendix A  —  Usage and Definitions

iii

 

AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT

     THIS AMENDED AND RESTATED CREDIT AND SECURITY AGREEMENT, dated as of December 1, 2006 (this
“Agreement”), is among CAB EAST LLC, a Delaware limited liability company, CAB WEST LLC, a
Delaware limited liability company, and FCALM, LLC, a Delaware limited liability company, as
borrowers (each, a “Borrower” and collectively, the “Borrowers”), FORD MOTOR CREDIT
COMPANY, a Delaware corporation (“Ford Credit”), as lender (in such capacity, the
“Lender”) and as servicer (in such capacity, the “Servicer”), U.S. BANK NATIONAL
ASSOCIATION, a national banking association (“U.S. Bank”), as administrative agent (in such
capacity, the “Administrative Agent”) and not in its individual capacity, and HTD LEASING
LLC, a Delaware limited liability company (“HTD”), as collateral agent (the “Collateral
Agent”) and amends and restates in its entirety the Credit and Security Agreement, dated as of
July 22, 2005, among the Borrowers, Ford Credit, the Administrative Agent and the Collateral Agent
(the “Original Agreement”).

     Each party agrees as follows:

ARTICLE I

USAGE, DEFINITIONS AND INCORPORATION BY REFERENCE

     Section 1.01 Usage, Definitions and Incorporation by Reference. Capitalized terms
used but not otherwise defined in this Agreement or in Appendix 1 to any Exchange Note
Supplement delivered pursuant to this Agreement are defined in Appendix A to this
Agreement. Appendix A also contains rules as to usage applicable to this Agreement.

ARTICLE II

THE REVOLVING FACILITY

     Section 2.01 Amount and Terms of the Revolving Facility.

          (a) During the Revolving Period, the Lender will make advances (“Advances”) from time
to time to the Borrowers on the terms and conditions set forth in this Agreement. The Advances
will be repaid and further Advances may be made on a revolving basis in accordance with this
Agreement. The payment of interest on, and principal of, the Advances will constitute the joint
and several obligation of the Borrowers. No Advance will be made (i) on a day other than a
Business Day, (ii) if, after such Advance, the Revolving Facility Balance would exceed either (A)
the Facility Amount or (B) the Borrowing Base or (iii) on or after the termination of the Revolving
Period.

          (b) The Borrowers agree to repay the Advances on the terms and conditions set forth in this
Agreement. The Administrative Agent will record on its

 

 

books the Revolving Facility Balance from time to time based on the reports provided by the
Servicer pursuant to Section 2.01(e). The failure of the Administrative Agent to make, or
any error in making, any such recordation will not affect the obligations of the Borrowers with
respect to the Revolving Facility or the Advances.

          (c) The outstanding Revolving Facility Balance from time to time will be repaid on each
Payment Date in the manner and in the amount set forth in Section 10.02. A mandatory
principal payment will be due on the Revolving Facility on each Payment Date in an amount equal to
the excess, if any, of (i) the Borrowing Base as of the open of business on the first day of the
related Collection Period over (ii) the Borrowing Base as of the close of business on the last day
of the related Collection Period (the “Revolving Facility Principal Payment Amount”). The
Revolving Facility Balance will become due and payable on the Facility Termination Date. The
Borrowers will pay interest on the Revolving Facility Balance until the principal amount thereof is
paid in full at the rates and pursuant to the terms set forth in Section 2.03.

          (d) The proceeds of each Advance will be used by the Borrowers to purchase one or more Leases
and related Leased Vehicles. Each such Lease and Leased Vehicle will be allocated to the
Collateral Specified Interest of the applicable Borrower and maintained as a Collateral Lease and
Collateral Leased Vehicle, respectively, in accordance with Article IV of the Servicing
Agreement.

          (e) The Lender will make available to the Borrowers the amount of each Advance by remittance
or deposit of the amount of such Advance at the direction of the Servicer (which may include
remittance directly to the Dealer originating the Lease and Leased Vehicle purchased with such
Advance). No later then the 10th day of each month, the Servicer will provide to the
Administrative Agent a report (which may be included in the Monthly Revolving Facility Pool Report)
stating the Revolving Facility Balance as of the end of the preceding Collection Period.

          (f) The Lender, in its sole discretion, may terminate the Revolving Period upon not less than
30 Business Days’ prior notice to the Borrowers and the Administrative Agent. The Borrowers may
terminate the Revolving Period upon not less than 30 Business Days’ prior notice to the Lender and
the Administrative Agent. At the request of the Borrowers, the Lender, in its sole discretion, may
extend the Facility Termination Date by notifying the Borrowers of the new Facility Termination
Date. If no such notice is received by the Borrowers by the close of business on the 10th calendar
day prior to the then-current Facility Termination Date, the Lender will be deemed to have declined
the request of the Borrowers and the Facility Termination Date will not be so extended.

          (g) At the request of the Borrowers, the Lender, in its sole discretion, may increase the
Facility Amount by notifying the Borrowers and the Administrative Agent of the new Facility Amount.
The Lender, in its sole discretion, may reduce the Facility Amount upon not less than 30 Business
Days’ prior notice to the Borrowers and the Administrative Agent; provided, that the new
Facility Amount may not be less than the Revolving Facility Balance. The Borrowers, in their sole
discretion,

2

 

may decrease the Facility Amount by notifying the Lender and the Administrative Agent of the
new Facility Amount; provided, that the new Facility Amount may not be less than the
Revolving Facility Balance.

     Section 2.02 Appointment to Act as Borrower’s Agent. The Borrowers appoint the
Servicer (but only for so long as Ford Credit is the Servicer, in the case of clause (i) below) as
their agent for the following purposes: (i) selecting the amount of each Advance, (ii) arranging
for payment by the Borrowers of the Secured Obligations, (iii) causing the repayment and prepayment
of the Advances as required or permitted pursuant to Section 2.04 and (iv) at the direction
of the Borrowers, executing on behalf of the Borrowers and delivering to the Lender, all notices,
requests, demands or similar items required or permitted to be provided under this Agreement. The
Borrowers irrevocably agree that (i) the Borrowers will be bound by all actions of the Servicer
taken pursuant to this Section 2.02, (ii) the Lender, the Collateral Agent and the
Administrative Agent are authorized to accept any payment, notice, request, demand or similar item
required or permitted under this Agreement from the Servicer on behalf of the Borrowers and (iii)
the execution and delivery by the Servicer to the Lender, the Collateral Agent or the
Administrative Agent of any notice, request, demand or similar item or the taking by the Servicer
of any other action described in this Section 2.02 will be conclusive evidence, as among
the Borrowers, the Lender, the Collateral Agent and the Administrative Agent, of the Servicer’s
authority to execute and deliver such notice, request, demand or similar item or take such other
action on behalf of the Borrowers under this Agreement.

     Section 2.03 Interest on the Revolving Facility.

               (a) Except as otherwise provided in this Agreement, the Revolving Facility Balance will bear
interest, for each Collection Period until the principal amount thereof has been paid in full, at a
rate per annum equal to the applicable Revolving Facility Interest Rate for such Collection Period.

               (b) Except as otherwise provided in this Agreement, all accrued and unpaid interest for each
Collection Period will be payable in arrears on the related Payment Date during the term of this
Agreement. Interest on the Revolving Facility will be computed in the manner set forth in
Exhibit C. All accrued and unpaid interest with respect to the Revolving Facility will be
due and payable on the Facility Termination Date. The Advance Rate, and the terms set forth on
Exhibit C that are used to determine the Revolving Facility Interest Rate, each may be
modified from time to time by agreement of the Borrowers and the Lender.

     Section 2.04 Funds; Manner of Payment.

               (a) All amounts to be paid by or on behalf of the Borrowers to the Lender under this Agreement
will be paid by the deposit of such amounts, to the account designated by the Lender, in
immediately available funds in U.S. Dollars, on the date on which such amount is due. If the date
for any payment or prepayment under this
Agreement is extended by operation of law or otherwise, interest with respect thereto will

3

 

be
payable at the then-applicable Revolving Facility Interest Rate during such extension period.

               (b) As provided in Section 4.3(b) of the Servicing Agreement, so long as Ford Credit
remains both the Lender and the Servicer, Ford Credit may retain for its own account Collections on
the Revolving Facility Pool to pay amounts payable to the Lender or the Servicer pursuant to
Article X, and, to the extent of any such amounts so retained, the amounts due to the
Servicer under the Servicing Agreement or any Servicing Supplement or to the Lender under this
Agreement will be deemed paid in full. However, Ford Credit and the Borrowers will account for all
payments and deposits separately in the same manner as if such amounts had been deposited into the
Collection Account and distributed in the manner set forth in Article X on the applicable
Payment Date.

     Section 2.05 Calculation of Interest on the Revolving Facility and the Exchange Notes
. The Lender will calculate for the Advances the Revolving Facility Interest Rate, for the
related Interest Period (in each case, at a rate per annum rounded, if necessary, to the nearest
1/100,000 of 1% (.0000001), with five one-millionths of a percentage point rounded upward) and the
amount of interest payable (rounded to the nearest cent, with half a cent being rounded upward) on
the related Payment Date. The determination of the Revolving Facility Interest Rate by the Lender
will be final and binding upon all parties absent manifest error. The Exchange Note Interest Rate
on any Exchange Note will be calculated in the manner set forth in the related Exchange Note
Supplement.

ARTICLE III

APPOINTMENT OF COLLATERAL AGENT

AND GRANT OF SECURITY

     Section 3.01 Appointment of Collateral Agent; Duties of Collateral Agent.

               (a) The Lender appoints HTD as Collateral Agent under this Agreement for the benefit of the
Secured Parties. HTD accepts such appointment and agrees to perform the duties of the Collateral
Agent under this Agreement.

               (b) The Collateral Agent will:

               (i) hold a security interest in the Collateral for the benefit of the Secured Parties;

               (ii) execute and deliver all supplements and amendments to this Agreement and all
financing statements, continuation statements, instruments of further assurance and other
instruments, and take such other action
necessary or advisable (including recording such financing statements or other
instruments in a public filing office) to:

4

 

     (A) maintain or preserve the security interest (and the priority of such
security interest) granted under Section 3.02 of this Agreement or carry
out the purposes of this Agreement;

     (B) perfect, publish notice of or protect the validity of any security
interest granted pursuant to this Agreement;

     (C) enforce the Collateral; or

     (D) preserve and defend title to the Collateral and the rights of the Secured
Parties in such Collateral against the claims of all Persons;

               (iii) cause the Certificate of Title for each Collateral Leased Vehicle to reflect
“HTD Leasing LLC” or such substantially similar words as the relevant Governmental
Authority will accept, as the recorded lienholder or recorded holder of a security interest
in such Collateral Leased Vehicle (except to the extent that such actions have been taken
by the Servicer pursuant to Section 4.2(b) of the Servicing Agreement);

               (iv) with respect to each Collateral Leased Vehicle that is permitted or required by
the Basic Documents to be sold or otherwise disposed of by the applicable Borrower or
reallocated to a Specified Interest other than the Collateral Specified Interest of the
applicable Borrower, take all action necessary to cause (A) the security interest granted
pursuant to Section 3.02 in such Collateral Leased Vehicle to be released and (B)
the evidence of the Collateral Agent as lienholder on the related Certificate of Title to
be removed;

               (v) take the actions required to be taken by the Collateral Agent pursuant to
Article VI following a Facility Default, an Early Termination Event or an Exchange
Note Default; and

               (vi) take the other actions required to be taken by the Collateral Agent under this
Agreement.

               (c) The Borrowers or their respective Titling Company Administrators will pay the Collateral
Agent as compensation for the Collateral Agent’s services under this Agreement such fees as have
been separately agreed upon from time to time between the Borrowers and the Collateral Agent. The
Borrowers or their respective Titling Company Administrators will reimburse the Collateral Agent
for all reasonable out-of-pocket expenses incurred by the Collateral Agent, including costs of
collection, and the reasonable compensation, expenses and disbursements of the Collateral Agent’s
agents, counsel, accountants and experts, but excluding any expenses incurred by the Collateral
Agent through the Collateral Agent’s own willful misconduct, negligence or bad faith. The
obligations of the Borrowers to the Collateral Agent pursuant to this Section 3.01(c) will
survive the termination of this Agreement. Any
expenses incurred by the Collateral Agent after the occurrence of a Facility Default are
intended to constitute expenses of administration under the Bankruptcy Code or any other applicable
federal or State bankruptcy, insolvency or similar law.

5

 

               (d) The Administrative Agent agrees for the benefit of the Collateral Agent, the other parties
to this Agreement and the Exchange Noteholders to perform, on behalf of the Collateral Agent, all
of the duties that the Collateral Agent is required to perform under this Agreement. In addition,
the Administrative Agent agrees to (i) maintain the Collateral Agent in existence in its state of
organization, (ii) maintain all licenses, qualifications, authorizations and approvals from
Governmental Authorities that are necessary or desirable to facilitate the performance of the
Collateral Agent’s obligations under this Agreement, (iii) maintain a 100% limited liability
company interest in the Collateral Agent at all times and (iv) comply with, and take all actions as
are necessary or appropriate to avoid any violation of, the HTD LLC Agreement. The Collateral
Agent will not be responsible for, nor have any liability with respect to, any actions taken, or
omitted to be taken, by the Administrative Agent on behalf of the Collateral Agent. It is
contemplated that, pursuant to the HTD Administration Agreement, the Administrative Agent will
delegate to the Collateral Agent Administrator certain of the duties that the Administrative Agent
is required to perform on behalf of the Collateral Agent pursuant to this Section 3.01(d),
and each party to this Agreement and each Exchange Noteholder (by accepting the related Exchange
Note) consents to such delegation. In order to facilitate performance of the duties of the
Collateral Agent Administrator under the HTD Administration Agreement, the Collateral Agent agrees
to execute and deliver a power of attorney in favor of the Collateral Agent Administrator in
substantially the form set forth as Exhibit E.

               (e) The Collateral Agent constitutes and irrevocably appoints the Administrative Agent and all
Persons (including the Collateral Agent Administrator) to whom the obligations of the
Administrative Agent under this Agreement are delegated, at all times from and after the date of
the Original Agreement through the date on which this Agreement is terminated, as the true and
lawful attorney of the Collateral Agent, with full power (in the name of the Collateral Agent or
otherwise) to exercise all rights of the Collateral Agent, including the power and right to sign
any document, agreement or instrument on behalf of the Collateral Agent in connection with such
exercise of rights. The power of attorney granted, and all authority conferred, pursuant to this
Section 3.01(e) are granted and conferred solely to facilitate the performance of the
Administrative Agent’s obligations under this Agreement and will be exercised solely in a manner
consistent with this Agreement. This power of attorney will be irrevocable as one coupled with an
interest prior to the date on which this Agreement is terminated. The rights granted under this
Section 3.01(e) will terminate as to any Person upon the resignation or removal of such
Person in the capacity of Administrative Agent and pass to any successor Administrative Agent that
is appointed pursuant to this Agreement.

     Section 3.02 Security Interest.

               (a) At the Closing Date, each Borrower mortgages, pledges and grants a security interest in
all of such Borrower’s right, title and interest in, to and under
the Collateral (whether now owned or existing or hereafter acquired or arising) to HTD, as
Collateral Agent for the benefit of the Secured Parties. Such security interest in the Collateral
includes all of the rights, powers and options (but none of the obligations) of the Borrowers under
the Collateral, including the immediate and continuing right to claim

6

 

for, collect, receive and
give receipt for payments in respect of the Collateral and all other monies payable under the
Collateral, to give and receive notices and other communications, to make waivers or other
agreements, to exercise all rights and options, to bring Proceedings in the name of the Borrowers
or otherwise, and generally to do and receive anything that the Borrowers are or may be entitled to
do or receive under the Collateral or with respect to the Collateral.

               (b) The foregoing grant is made to secure (i) the payment of principal of, and interest on,
the Advances and any Exchange Notes and (ii) compliance by the Borrowers with the provisions of
this Agreement (the obligations described in clauses (i) and (ii), the “Secured
Obligations”), in each case for the benefit of the Secured Parties.

               (c) The Collateral Agent acknowledges such grant and agrees to perform the duties required in
this Agreement so that the interests of the Secured Parties may be adequately and effectively
protected.

               (d) The Borrowers authorize the Collateral Agent and Skadden, Arps, Slate, Meagher & Flom LLP
to file any Record or Records (as such term is defined in the applicable UCC), including financing
statements or continuation statements, and amendments thereto, in all jurisdictions and with all
filing offices as are necessary or advisable to perfect, and continue the perfection of, the
security interest granted to the Collateral Agent under this Agreement. Such financing statements
may describe the Collateral in any manner as the Collateral Agent, may determine is necessary,
advisable or prudent to ensure the perfection of the security interest granted to the Collateral
Agent under this Agreement.

     Section 3.03 Release of Collateral.

               (a) The Collateral Agent may, and when required by this Agreement will, execute instruments to
release property from the security interest granted pursuant to Section 3.02, or convey the
Collateral Agent’s interest in the same, in a manner and under circumstances consistent with this
Agreement. The Collateral Agent will release property from the security interest granted pursuant
to Section 3.02 only pursuant to and in accordance with this Agreement. The Collateral
Agent may rely upon an Officer’s Certificate and an Opinion of Counsel in connection with any such
release. Counsel rendering any such Opinion of Counsel may rely, without independent
investigation, on the accuracy and validity of any certificate or other instrument delivered to the
Collateral Agent, in connection with any such action.

               (b) The Collateral Agent will be deemed to release, and does release, any and all Liens and
other rights and interests it possesses or may possess from time to time, without further action of
the parties, in, to and under a Collateral Leased
Vehicle, the proceeds thereof and the rights of the related Borrower and/or Ford Credit
(individually or as Servicer) under any contract or agreement for the sale or other disposition of
such Collateral Leased Vehicle (including pursuant to any insurance policy with respect to or
covering such Collateral Leased Vehicle), effective immediately prior

7

 

to the sale or other
disposition of such Collateral Leased Vehicle (provided that the Servicer will Post all proceeds of
such Collateral Leased Vehicle in accordance with the Servicing Agreement).

               (c) No party relying upon an instrument executed by the Collateral Agent as provided in this
Section 3.03 is required to verify the Collateral Agent’s authority, inquire into the
satisfaction of any conditions precedent or require evidence as to the application of any monies.

               (d) The Collateral Agent, at such time as the Secured Obligations and all sums due to the
Administrative Agent pursuant to Section 7.05 have been paid in full, will release the
Collateral from the security interest granted pursuant to Section 3.02 and release to the
Borrowers or any other Person entitled thereto any funds then on deposit in any Collection Account.

               (e) Upon the request of the Borrowers, the Collateral Agent agrees to execute and deliver any
termination statements for filing under the provisions of the UCC of any applicable jurisdiction
pursuant to Section 3.01(b)(vi) in connection with the release of the security interest
granted pursuant to Section 3.02.

     Section 3.04 Dissolution of Collateral Agent. As soon as practicable following the
first date as of which no Financing Agreement remains in effect, the Administrative Agent will,
upon the written direction of the Borrowers, dissolve the Collateral Agent in accordance with the
Delaware LLC Act and the HTD LLC Agreement.

ARTICLE IV

THE EXCHANGE NOTES

     Section 4.01 Issuance of Exchange Notes; Form.

               (a) The Lender may from time to time, in connection with an assignment of its interest in all
or a portion of the Revolving Facility Balance, request that all or a portion of the Revolving
Facility Balance be issued in the form of one or more notes in definitive form in accordance with
this Article IV (each an “Exchange Note”) by notice to the Administrative Agent and
the Borrowers. The Lender and the Borrowers will agree to the terms of each Exchange Note, which
terms will be set forth in a supplement to this Agreement (each, an “Exchange Note
Supplement”). Each Exchange Note issued under this Agreement will be a “Titling Company Note”
within the meaning of Section 4.5 of the Titling Company Agreements.

               (b) Each Exchange Note Supplement will designate a portion of the Collateral Leases and
Collateral Leased Vehicles included in the Revolving Facility Pool as the “Reference Pool”
with respect to the related Exchange Note or Exchange Notes, as applicable (and following such
designation, such Collateral Leases and Collateral Leased Vehicles will no longer be a part of the
Revolving Facility Pool and will not be available to be part of any other Reference Pool). Each
Exchange Note will be payable solely from Collections on the Collateral Leases and Collateral
Leased

8

 

Vehicles in the related Reference Pool in accordance with the priorities in Article
X and any applicable Exchange Note Supplement. For purposes of determining the Collections
that are applicable to any Reference Pool, the Collateral Leases and Collateral Leased Vehicles
included in such Reference Pool will be deemed to have been included in such Reference Pool from
and after the Cutoff Date specified in the related Exchange Note Supplement.

               (c) Each Exchange Note, together with the Administrative Agent’s certificate of authentication
on such Exchange Note, will be substantially in the form set forth as Exhibit A or in such
other form or forms as may be provided in the related Exchange Note Supplement. The Exchange Notes
may have such marks of identification and such legends or endorsements placed on such Exchange
Notes as may be determined, consistent with this Agreement, by the Authorized Persons executing
such Exchange Notes, as evidenced by their execution of each such Exchange Note. Each Exchange
Note may be freely transferred by endorsement and delivery, subject to Section 4.03 and
Section 4.04(f). An Exchange Noteholder may Transfer an Exchange Note only in whole and
not in part.

               (d) Each Exchange Note will be typewritten or printed, as determined by the Authorized Persons
executing such Exchange Note, as evidenced by their execution of such Exchange Note.

               (e) Each Exchange Note will be dated the date of its authentication. Each Exchange Note will,
upon its execution and delivery, be issued to, and be payable in favor of, the Lender. Upon the
issuance of each Exchange Note, the Revolving Facility Balance will be reduced by an amount equal
to the initial Exchange Note Balance of such Exchange Note, as reflected on the books and records
of the Administrative Agent maintained pursuant to Section 2.01(b).

     Section 4.02 Issuance of Exchange Notes; Execution, Authentication and Delivery.

               (a) Each Exchange Note will be executed by an Authorized Person of each Borrower. The
signature of such Authorized Person on the Exchange Notes may be manual or facsimile.

               (b) Exchange Notes bearing the manual or facsimile signature of an individual who was an
Authorized Person of a Borrower will bind such Borrower, notwithstanding that such individual has
ceased to hold such office prior to the
authentication and delivery of such Exchange Notes or did not hold such office at the date of
issuance of such Exchange Note.

               (c) Prior to or concurrently with the delivery of any Exchange Note to the Administrative
Agent for authentication, the Borrowers, the Lender and the Collateral Agent will execute and
deliver an Exchange Note Supplement which will specify the principal terms of such new Exchange
Note or Exchange Notes, as applicable.

               (d) Each Exchange Note Supplement will set forth:

9

 

               (i) the date on which the related Exchange Note(s) will be issued (each, an
“Exchange Note Issuance Date”);

               (ii) the class or classes of Exchange Notes being issued;

               (iii) the initial Exchange Note Balance of the related Exchange Notes being issued;

               (iv) a Schedule listing the Collateral Leases and the Collateral Leased Vehicles
initially included in the related Reference Pool;

               (v) the Cutoff Date for the related Reference Pool;

               (vi) the Exchange Note Interest Rate for each class of Exchange Notes being issued
(and, in the case of a floating rate Exchange Note, the manner of determining the floating
rate);

               (vii) a specification of any Exchange Note Defaults set forth in Section 6.04
that are inapplicable to such Exchange Note(s) or modified and any additional events
constituting an Exchange Note Default with respect to such Exchange Note(s); and

               (viii) the Final Scheduled Payment Date for each class of Exchange Notes being issued.

               (e) The obligation of the Administrative Agent to authenticate any Exchange Note and to
acknowledge and deliver the related Exchange Note Supplement is subject to the delivery to the
Administrative Agent of the following:

               (i) notice from the Lender, including the Exchange Note Issuance Date, to be provided
at least 5 Business Days before the Exchange Note Issuance Date;

               (ii) the Exchange Note Supplement, executed by each party thereto other than the
Administrative Agent; and

               (iii) an Officer’s Certificate from the Borrowers that all conditions precedent to the
authentication and delivery of such Exchange Note or Exchange Notes, as applicable, have
been satisfied.

               (f) Following satisfaction of the conditions set forth in Section 4.02(e), the
Administrative Agent will (i) acknowledge the Exchange Note Supplement and (ii) authenticate and
deliver one or more Exchange Notes, as applicable, in the form, with the principal amount and with
the other terms specified in such Exchange Note Supplement.

               (g) No Exchange Note will be entitled to any benefit under this Agreement or any Exchange Note
Supplement or be valid for any purpose, unless a

10

 

certificate of authentication appears on such
Exchange Note, and such certificate is substantially in the form provided for with respect to such
Exchange Note and is executed by the Administrative Agent by the manual or facsimile signature of
one of its authorized signatories, and such certificate upon any Exchange Note will be conclusive
evidence, and the only evidence, that such Exchange Note has been duly authenticated and delivered
under this Agreement.

               (h) Each Exchange Note will state that (i) if an Insolvency Event occurs with respect to any
of the Borrowers, any claim that the applicable Exchange Noteholder may seek to enforce at any time
against any of the Borrowers will be limited in recourse to the related Reference Pool (except to
the extent of Shared Amounts allocated to such Exchange Noteholder pursuant to the applicable
Exchange Note Supplement), (ii) if, notwithstanding clause (i), the Exchange Noteholder of such
Exchange Note is deemed to have any claim against the assets of the Borrowers other than the assets
included in the related Reference Pool, such claim will be subordinate to the payment in full,
including post-petition interest, of the claims of the Lender and to the holders of (A) all other
Exchange Notes and (B) in the case of assets allocated to a Specified Interest other than the
Collateral Specified Interest, all other asset-backed securities, the payments on which are derived
primarily from collections on designated assets of the Borrowers and all related hedging
arrangements and (iii) such recitation constitutes an enforceable subordination agreement for
purposes of Section 510(a) of the Bankruptcy Code.

     Section 4.03 Exchange Noteholders Entitled to Benefits of this Agreement. Ford Credit will
be the initial Exchange Noteholder of each Exchange Note. Upon the endorsement and transfer of any
Exchange Note, the transferee will execute and deliver (i) to the Administrative Agent a UCC Notice
of Security Interest in substantially the form set forth as Exhibit B and (ii) to the
Administrative Agent and each other party to the Intercreditor Agreement a Joinder Agreement in
substantially the form attached as Exhibit A to the Intercreditor Agreement naming such
holder as a “New Interest Holder” thereunder. Subject to delivery of such notice and compliance
with the other terms of this Agreement, including Section 4.02(g) and Section 4.04,
with respect to such transfer, the transferee will become an Exchange Noteholder for all purposes
of this Agreement.
No Person holding an Exchange Note will be treated as a Secured Party for purposes of this
Agreement unless such Person has complied with the terms of this Section 4.03.

     Section 4.04 Registration; Registration of Transfer and Exchange.

               (a) The Borrowers will cause to be kept a register (the “Exchange Note Register”) in
which, subject to such reasonable regulations as it may prescribe, the Borrowers will provide for
the registration of Exchange Notes and the registration of transfers of Exchange Notes. The
Administrative Agent initially will be the “Exchange Note Registrar” and will keep the
Exchange Note Register, as agent for and on behalf of the Borrowers, for the purpose of registering
Exchange Notes and transfers of Exchange Notes as provided in this Agreement. Upon any resignation
of any Exchange Note Registrar, the Borrowers will promptly appoint a successor or, if they elect
not to make such an appointment, assume the duties of Exchange Note Registrar. If

11

 

a Person other
than the Administrative Agent is appointed by the Borrowers as Exchange Note Registrar, (i) the
Borrowers will give the Administrative Agent prompt notice of the appointment of such Exchange Note
Registrar and of the location, and any change in the location, of the Exchange Note Register, (ii)
the Administrative Agent will have the right to inspect the Exchange Note Register at all
reasonable times and to obtain copies of the Exchange Note Register, and (iii) the Administrative
Agent will have the right to rely upon a certificate executed on behalf of the Exchange Note
Registrar by an Authorized Person of the Exchange Note Registrar as to the names and addresses of
the Exchange Noteholders and the principal amounts and number of such Exchange Notes.

               (b) Upon surrender for registration of transfer of any Exchange Note, if the requirements of
Section 8-401(a) of the UCC are met, the Borrowers will execute, and the Administrative Agent will
authenticate and will deliver to the related Exchange Noteholder, in the name of the designated
transferee or transferees, a new Exchange Note in the same aggregate principal amount.

               (c) Each Exchange Note issued upon any registration of transfer or exchange of an Exchange
Note will be the valid obligation of the Borrowers, evidencing the same debt, and entitled to the
same benefits under this Agreement and the related Exchange Note Supplement as the Exchange Note
surrendered upon such registration of transfer or exchange.

               (d) Every Exchange Note presented or surrendered for registration of transfer or exchange will
be accompanied by a transferee representation letter substantially in the form of Exhibit D
(with such changes therein as may be approved by the Servicer) and such other documents or evidence
as the Administrative Agent may require.

               (e) Neither the Borrowers nor the Administrative Agent will impose a service charge on an
Exchange Noteholder for any registration of transfer or exchange of an Exchange Note, but the
Borrowers may require payment of a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any registration of transfer or exchange of an Exchange
Note.

               (f) By acceptance of any Exchange Note, the Exchange Noteholder thereof agrees with and
represents to the Borrowers and the Administrative Agent, that:

               (i) no Transfer of such Exchange Note will be made unless the registration
requirements of the Securities Act and any applicable State securities laws are complied
with, or such transfer is exempt from the registration requirements under the Securities
Act, and only to either (A) a “qualified institutional buyer” as defined in Rule 144A of
the Securities Act, (B) an institutional accredited investor as defined in Rule 501(a)(1),
(2), (3) or (7) of Regulation D under the Securities Act or (C) the Holding Companies or
their respective Affiliates in a transaction exempt from the registration requirements of
the Securities Act and, in each case, such transfer is in accordance with any

12

 

applicable
State securities laws, and the transferee executes and delivers to the Lender and the
Administrative Agent a transferee representation letter substantially in the form of
Exhibit D;

               (ii) either (A) it is not, and is not acquiring and holding such Exchange Notes on
behalf of, a Plan or a governmental or church plan that is subject to Section 406 of ERISA
or Section 4975 of the Code or to any federal, state, foreign or local law that is
substantially similar to the prohibited transaction provisions of Section 406 of ERISA or
Section 4975 of the Code or (B) its acquisition and holding of such Exchange Note
throughout the period that it holds such Exchange Note will not result in a non-exempt
prohibited transaction under Section 406 of ERISA or Section 4975 of the Code (or, in the
case of a governmental or church plan, a violation of any similar federal, state, foreign
or local law). In addition, if the holder is, or is acting on behalf of, a Plan, the
fiduciaries of such Plan represent and warrant that they have been informed of and
understand the Borrowers’ investment objectives, policies and strategies and that the
decision to invest such Plan’s assets in such Exchange Note was made with appropriate
consideration of relevant investment factors with regard to such Plan and is consistent
with the duties and responsibilities imposed upon fiduciaries with regard to their
investment decisions under ERISA;

               (iii) none of the Borrowers or the Administrative Agent is under an obligation to
register any Exchange Note under the Securities Act or any State securities laws. Each
Exchange Note will bear a legend to the following effect unless determined otherwise by the
Servicer (as certified to the Administrative Agent in an Officer’s Certificate):

“THIS EXCHANGE NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY
SECURITIES OR BLUE SKY LAW OF ANY STATE OF THE UNITED STATES. THE HOLDER
HEREOF, BY PURCHASING THIS EXCHANGE NOTE, AGREES THAT THIS EXCHANGE NOTE
MAY BE REOFFERED, RESOLD,
PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES
ACT AND OTHER APPLICABLE LAWS, AND ONLY (1) TO A “QUALIFIED INSTITUTIONAL
BUYER” WITHIN THE MEANING THEREOF IN RULE 144A OF THE SECURITIES ACT, (2)
TO AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE MEANING THEREOF IN
RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT,
OR (3) TO THE HOLDING COMPANIES OR THEIR RESPECTIVE AFFILIATES, IN EACH
CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED
STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED
STATES, AND SUBJECT TO THE RECEIPT

13

 

BY THE ADMINISTRATIVE AGENT OF SUCH
OTHER EVIDENCE ACCEPTABLE TO THE ADMINISTRATIVE AGENT THAT SUCH REOFFER,
RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE WITH THE SECURITIES ACT AND
OTHER APPLICABLE LAWS;” and

               (iv) As a condition to the registration of any sale, transfer, assignment,
participation, pledge or other disposition (each, a “Transfer”) of an Exchange
Note, the prospective transferee of such Exchange Note will be required to represent to the
Administrative Agent and the Lender the following, unless determined otherwise by the
Servicer (as certified to the Administrative Agent in an Officer’s Certificate):

     (A) It understands that no subsequent Transfer of the Exchange Note is
permitted unless it causes its proposed transferee to provide to the Administrative
Agent and the Borrowers a letter substantially in the form of Exhibit D
(with such changes therein as may be approved by the Servicer), or such other
statement as the Borrowers may require.

     (B) It understands that any purported Transfer of an Exchange Note (or any
interest therein) in contravention of any of the restrictions and conditions
contained in this Section 4.04 will be null and void, and the purported
transferee in any such purported Transfer will not be recognized by the Borrowers
or any other Person as an Exchange Noteholder for any purpose.

     Section 4.05 Mutilated, Destroyed, Lost or Stolen Exchange Notes.

               (a) If (i) any mutilated Exchange Note is surrendered to the Administrative Agent, or the
Administrative Agent receives evidence to its satisfaction of the destruction, loss or theft of any
Exchange Note, and (ii) there is delivered to the Administrative Agent such security or indemnity
as may be required by it to hold the Borrowers and the Administrative Agent harmless, then, in the
absence of notice to the Borrowers, the Exchange Note Registrar or the Administrative Agent that
such Exchange
Note has been acquired by a protected purchaser, as defined in Section 8-303 of the UCC (a
“Protected Purchaser”), and provided that the requirements of Section 8-405 of the UCC are
met, the Borrowers will execute, and the Administrative Agent will authenticate and deliver, in
exchange for or in lieu of any such mutilated, destroyed, lost or stolen Exchange Note, a
replacement Exchange Note, except that if any such destroyed, lost or stolen Exchange Note (but not
a mutilated Exchange Note) is due and payable within 7 days or has been called for redemption,
instead of issuing a replacement Exchange Note, the Borrowers may pay such destroyed, lost or
stolen Exchange Note when so due or payable or upon the Exchange Note Redemption Date applicable to
such Exchange Note without surrender of such Exchange Note. If, after the delivery of such
replacement Exchange Note or payment of a destroyed, lost or stolen Exchange Note pursuant to the
preceding sentence, a Protected Purchaser of the original Exchange Note in lieu of which such
replacement Exchange Note was issued (or such payment made) presents for

14

 

payment such original
Exchange Note, the Borrowers and the Administrative Agent will be entitled to recover such
replacement Exchange Note (or such payment) from the Person to whom it was delivered or any Person
taking such replacement Exchange Note (or such payment) from such Person to whom such replacement
Exchange Note (or such payment) was delivered or any assignee of such Person, except a Protected
Purchaser, and will be entitled to recover upon the security or indemnity provided for such
replacement Exchange Note (or such payment) to the extent of any cost, expense, loss, damage, claim
or liability incurred by the Borrowers or the Administrative Agent in connection with such
replacement Exchange Note (or such payment).

               (b) Upon the issuance of any replacement Exchange Note under this Section 4.05, the
Borrowers may require the payment by the Exchange Noteholder of such Exchange Note of a sum
sufficient to cover any tax or other governmental charge that may be imposed in relation to such
replacement Exchange Note and any other reasonable expenses of the Borrowers and/or the
Administrative Agent in connection with such replacement Exchange Note.

               (c) Every replacement Exchange Note issued pursuant to this Section 4.05 will
constitute an original additional contractual obligation of the Borrowers, whether or not the
mutilated, destroyed, lost or stolen Exchange Note is enforceable by anyone and, except as provided
in this Agreement, will be entitled to all the benefits of this Agreement equally and
proportionately with any and all other Exchange Notes duly issued under this Agreement and the
related Exchange Note Supplement.

               (d) The provisions of this Section 4.05 are exclusive and preclude, to the extent
lawful, all other rights and remedies with respect to the replacement or payment of mutilated,
destroyed, lost or stolen Exchange Notes.

     Section 4.06 Payment of Principal and Interest.

               (a) Each Exchange Note will accrue interest at the applicable Exchange Note Interest Rate, and
such interest will be due and payable on each applicable Payment Date. Interest and principal on
the Exchange Notes will be paid by
wire transfer in immediately available funds, to the account of such Exchange Noteholder (as
designated by such Exchange Noteholder to the Exchange Note Registrar on or prior to the date such
payment is to be made) except that the final installment of principal payable with respect to such
Exchange Note on a Payment Date, an Exchange Note Redemption Date or the Final Scheduled Payment
Date will be payable in accordance with Section 4.06(b). Amounts withheld under the Code
or any State or local tax law by any Person from a payment to any Exchange Noteholder of interest
and/or principal will be considered as having been paid by the Borrowers to such Exchange
Noteholder for all purposes of this Agreement and the related Exchange Note Supplement.

               (b) The principal of each Exchange Note will be payable in accordance with Article X
and the related Exchange Note Supplement. Principal payments will be due on each Exchange Note on
each Payment Date in the amount set

15

 

forth in the applicable Exchange Note Supplement. The entire
outstanding Exchange Note Balance of each Exchange Note will become due and payable on the Final
Scheduled Payment Date with respect to such Exchange Note. Notwithstanding the foregoing, the
entire unpaid Exchange Note Balance of any Exchange Note will be due and payable on the date on
which an Exchange Note Default with respect to such Exchange Note has occurred and is continuing,
if the applicable Exchange Noteholder has declared such Exchange Note to be immediately due and
payable in the manner provided in Section 6.04(c). The final installment of principal of
each Exchange Note will be payable only upon presentation and surrender of such Exchange Note to
the Exchange Note Registrar.

               (c) If funds are expected to be available for payment in full of the then remaining unpaid
principal amount of an Exchange Note on a Payment Date, then the Administrative Agent will notify
the applicable Exchange Noteholder of the date on which the Borrowers expect that the final
installment of principal of and interest on such Exchange Note will be paid not later than 5 days
prior to such date. Such notice will specify that such final installment will be payable only upon
presentation and surrender of such Exchange Note and will specify the place where such Exchange
Note may be presented and surrendered for payment of such installment.

               (d) Interest will be payable on each Exchange Note on each Payment Date in an amount equal to
the Exchange Note Interest Payment Amount.

     Section 4.07 Cancellation of Exchange Notes. In connection with an optional
redemption of an Exchange Note pursuant to the applicable Servicing Supplement, the Servicer
(provided that the Servicer and the Lender are the same entity), by notice to the
Borrowers, the Lender, the Collateral Agent and the Administrative Agent, may, pursuant to such
Servicing Supplement, request that the Borrowers cancel the Exchange Note. Upon such request, the
Borrowers will, pursuant to this Section 4.07, cancel the Exchange Note and, upon
cancellation, if no other Exchange Notes related to such Reference Pool are Outstanding, the
applicable Reference Pool will be deemed to no longer exist and the Collateral Leases and related
Collateral Leased Vehicles included in such Reference Pool will be reallocated to the
Revolving Facility Pool.

     Section 4.08 Acceptance of Terms of this Agreement. Each Exchange Noteholder, by
accepting the related Exchange Note, will be deemed to have agreed to the terms and conditions of
this Agreement with the same effect as if such Exchange Noteholder had been a party to this
Agreement. A provision that is substantively identical to this Section 4.08 will be
included in each Exchange Note.

ARTICLE V

REPRESENTATIONS, WARRANTIES AND COVENANTS

     Until all of the Secured Obligations have been paid in full, the Revolving Facility has been
terminated and this Agreement has been terminated:

16

 

     Section 5.01 Existence(a) . Each Borrower will maintain its existence, rights and
franchises as a limited liability company under the Delaware LLC Act (unless it becomes, or any
successor to such Borrower under this Agreement is or becomes, organized under the laws of any
other State or of the United States, in which case such Borrower will maintain its existence,
rights and franchises under the laws of such other jurisdiction) and will obtain and preserve its
qualification in each jurisdiction in which such qualification is or will be necessary to protect
the validity and enforceability of this Agreement, the Exchange Notes and the Collateral. Each
Borrower is not an “investment company” or controlled by an “investment company” as defined by the
Investment Company Act.

     Section 5.02 Protection of Collateral. In connection with the performance by the
Collateral Agent of its duties under Section 3.01(b), the Borrowers will execute and
deliver all supplements and amendments to this Agreement and all financing statements, continuation
statements, instruments of further assurance and other instruments (including a “Certificate of
Security” in the forms attached hereto as Exhibit F in the states where such certificate is
required by law for the purposes set forth below), and will take such other action necessary or
advisable (including recording such financing statements or other instruments in a public filing
office) to:

               (a) maintain or preserve the security interest (and the priority of any security interest) of
this Agreement or carry out more effectively the purposes of this Agreement;

               (b) perfect, publish notice of or protect the validity of the security interest granted under
this Agreement;

               (c) enforce any of the Collateral; or

               (d) preserve and defend title to the Collateral and the rights of the Collateral Agent and the
Secured Parties in such Collateral against the claims of all Persons.

The Borrowers authorize the Administrative Agent and the Collateral Agent Administrator to file any
financing statement, continuation statement or other instrument required to be filed pursuant to
this Section 5.02.

     Section 5.03 Performance of Obligations; Servicing.

               (a) No Release of Material Covenants or Obligations. The Borrowers will not take any
action, and will use commercially reasonable efforts not to permit any action to be taken by
others, that would release any Person from any of such Person’s material covenants or obligations
under any instrument or agreement included in the Collateral or that would result in the amendment,
hypothecation, subordination, termination or discharge of, or impair the validity or effectiveness
of, any such instrument or agreement, except as provided in this Agreement and the other Basic
Documents. Except as otherwise permitted in any Basic Document, the Borrowers will not amend,
modify, waive, supplement, terminate or surrender the terms of any Collateral

17

 

or any Basic Document
without first obtaining the consent of the Lender, and the consent of each Exchange Noteholder
materially adversely affected thereby.

               (b) Contracting. The Borrowers may contract with other Persons to assist them in
performing their duties under this Agreement, and any performance of such duties by a Person
identified to the Lender and the Administrative Agent in an Officer’s Certificate of the Borrowers
will be deemed to be action taken by the Borrowers.

               (c) Performance of Obligations. The Borrowers will timely perform and observe all of
their obligations and agreements contained in this Agreement and the other Basic Documents.

     Section 5.04 Negative Covenants. So long as any Advance or Exchange Note is
Outstanding, the Borrowers will not:

               (a) directly or indirectly, make payments to or distributions from any Collection Account or
otherwise sell, transfer or dispose of any Collateral, except in accordance with this Agreement,
any related Exchange Note Supplement and the other Basic Documents;

               (b) claim any credit on, or make any deduction from the principal or interest payable in
respect of, the Advance or Exchange Notes (other than
amounts withheld from such payments under the Code or any State or local tax law) or assert
any claim against the Lender or any present or former Exchange Noteholder by reason of the payment
of the taxes levied or assessed upon the Borrowers or the Collateral;

               (c) dissolve or liquidate in whole or in part; or

               (d) (i) permit the validity or effectiveness of this Agreement to be impaired, or permit the
security interest granted under this Agreement to be amended, hypothecated, subordinated,
terminated or discharged, or permit any Person to be released from any covenants or obligations
with respect to the Advances or Exchange Notes under this Agreement except as permitted by this
Agreement or other Basic Document, (ii) permit any Lien (other than the security interest granted
under this Agreement or a Permitted Lien) to be created on or extend to or otherwise arise upon or
burden the assets of the Borrowers, or any part of the Collateral or any interest in the Collateral
or the proceeds of the Collateral, (iii) permit the security interest granted under this Agreement
not to constitute a valid first priority (other than with respect to Permitted Liens) security
interest in the Collateral or (iv) permit any Person to be released from any covenants or
obligations under this Agreement except as permitted by this Agreement or other Basic Document.

     Section 5.05 Opinions as to Collateral. On or before April 30 of each calendar year
beginning in 2008, if an Exchange Note was Outstanding during any portion of the preceding calendar
year and such Exchange Note is still Outstanding on April 30 of such

18

 

year, the Borrowers will
furnish to the Administrative Agent an Opinion of Counsel stating that, in the opinion of such
counsel, either:

          (a) (i) in the case of the Collateral other than the Collateral Leased Vehicles, such action
has been taken with respect to the recording, filing, re-recording and refiling of this Agreement,
any amendments, any financing statements and continuation statements and any other requisite
documents, as applicable, and with respect to the taking of any other action required by law, as is
necessary to maintain the security interest granted in such Collateral under this Agreement, and
reciting the details of such action and (ii) in the case of the Collateral Leased Vehicles,
procedures have been established that if followed would be sufficient to maintain the security
interest granted in such Collateral Leased Vehicles under this Agreement; or

          (b) stating that in the opinion of such counsel no such action is necessary to maintain such
security interest.

     Section 5.06 Annual Statement as to Compliance. An Authorized Person of each Borrower
will deliver to the Administrative Agent, on or before April 30 of each calendar year beginning in
2008, if an Exchange Note was Outstanding during any portion of the preceding calendar year
and such Exchange Note is still Outstanding on April 30 of such year, an Officer’s Certificate
stating, as to the Authorized Person signing such Officer’s Certificate, that:

               (a) a review of such Borrower’s performance under this Agreement during the portion of the
preceding calendar year during which the Exchange Note was Outstanding has been made under such
Authorized Person’s supervision; and

               (b) to such Authorized Person’s knowledge, based on such review, such Borrower has complied
with the conditions and covenants under this Agreement in all material respects during the portion
of such calendar year during which the Exchange Note was Outstanding, or, if there has been a
failure in its compliance with any such condition or covenant in any material respect that is
continuing, specifying each such failure known to such Authorized Person and the nature and status
of such failure.

     Section 5.07 Borrowers May Consolidate, etc., Only on Certain Terms. No Borrower will
consolidate or merge with or into any other Person or, except as provided in the related Titling
Company Agreement and the other Basic Documents, transfer all or substantially all of its
properties and assets to any other Person unless, in either case:

               (a) the Person (if other than the applicable Borrower) formed by or surviving such
consolidation or merger or acquiring such properties and assets, as the case may be (i) is
organized and existing under the laws of the United States or any State and (ii) assumes, by a
supplement to this Agreement, executed and delivered to the Administrative Agent, in form
satisfactory to the Administrative Agent, the due and punctual payment of the principal of and
interest on all of the Secured Obligations and the performance or observance of every agreement and
covenant of this Agreement to be performed or observed by such Borrower, all as provided in this
Agreement;

19

 

               (b) immediately after giving effect to such consolidation or merger, no Potential Facility
Default, Facility Default, Potential Exchange Note Default or Exchange Note Default will have
occurred and be continuing; and

               (c) each Borrower has received an Opinion of Counsel (and has delivered copies of such Opinion
of Counsel to the Administrative Agent) substantially to the effect that such consolidation, merger
or transfer will not cause any Exchange Note to be deemed sold or exchanged for purposes of Section
1001 of the Code;

               (d) each Borrower has received an Opinion of Counsel (and has delivered copies of such Opinion
of Counsel to the Administrative Agent) substantially to the effect that such consolidation, merger
or transfer will not cause any Borrower to be treated as an association or publicly traded
partnership taxable as a corporation for U.S. federal income tax purposes;

               (e) any action that is necessary to maintain the security interest granted under this
Agreement has been taken; and

               (f) the Borrower proposing to consummate such merger, consolidation or transfer has delivered
to the Administrative Agent an Officer’s Certificate and an Opinion of Counsel, each stating that
such consolidation or merger and such amendment comply with this Article V and that all
conditions precedent in this Agreement provided for relating to such consolidation or merger have
been complied with (including any filing required by the Securities Exchange Act of 1934).

     Section 5.08 Successor or Transferee. Upon any consolidation, merger or transfer in
accordance with Section 5.07:

               (a) the Person formed by or surviving such consolidation or merger (if other than the
applicable Borrower) or the Person acquiring the properties and assets of the applicable Borrower,
as the case may be, will succeed to, and be substituted for, and may exercise every right and power
of, such Borrower under this Agreement with the same effect as if such Person had been named as a
Borrower in this Agreement; and

               (b) in the case of a transfer of all or substantially all of the properties and assets of any
Borrower, such Borrower will be released from every covenant and agreement of this Agreement to be
performed or observed by such Borrower, immediately upon the delivery of notice to the
Administrative Agent stating that such Borrower is to be so released.

     Section 5.09 No Unauthorized Activities. No Borrower will engage in any activity
other than as required or authorized by this Agreement, the other Basic Documents or the Titling
Company Agreement governing such Borrower.

     Section 5.10 Limitation on Obligations. Except as contemplated by this Agreement, the
other Basic Documents and the Titling Company Agreement governing such Borrower, no Borrower will
incur, assume, guarantee or endorse any indebtedness

20

 

unless any such indebtedness will be limited
in recourse to assets of the Borrower other than the Collateral.

     Section 5.11 Further Instruments and Acts. Upon request of the Administrative Agent,
the Borrowers will execute and deliver such further instruments and do such further acts as may be
reasonably necessary or proper to carry out the purposes of this Agreement.

     Section 5.12 Representations and Warranties by the Borrowers as to Security Interest. Effective as of each Exchange Note Issuance Date, subject to the related Exchange Note
Supplement, the Borrowers make the following representations and warranties:

               (a) This Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Collateral in favor of the Collateral Agent prior to all other Liens (other
than Permitted Liens) and enforceable as such against creditors of and purchasers from the
Borrowers. Other than the Permitted Liens and the security interest granted to the Collateral
Agent pursuant to this Agreement, the Borrowers have not pledged, assigned, sold, granted a
security interest in, or otherwise conveyed any part of the Collateral, including the Reference
Pool with respect to such Exchange Note.

               (b) The Borrowers own and have good and marketable title to the portion of the Collateral
constituting the Reference Pool with respect to such Exchange Note. The Collateral, including the
Collateral included in the Reference Pool with respect to such Exchange Note, is free and clear of
any Lien (other than a Permitted Lien) of any Person (other than the Collateral Agent and other
than as permitted by this Agreement and the other Basic Documents).

               (c) The Borrowers have caused the filing of all financing statements in all appropriate
jurisdictions in order to perfect the security interest granted in the Collateral to the Collateral
Agent (to the extent that a security interest can be perfected by such filing). The Borrowers have
not authorized the filing of and are not aware of any financing statements against the Borrowers
that include a description of collateral covering any part of the Collateral, including the
Collateral included in the Reference Pool with respect to such Exchange Note, other than any
financing statements relating to the security interest granted to the Collateral Agent. The
Borrowers are not aware of any judgment or tax lien filings against them.

               (d) All of the Permitted Investments with respect to such Exchange Note have been and will be
credited to the related Collection Account. The securities intermediary for each Securities
Account has agreed or will agree in an account control agreement to (i) treat all assets credited
to the Collection Accounts as “financial assets” within the meaning of the applicable UCC and (ii)
comply with all instructions originated by the secured party as set forth in the applicable account
control agreement relating to the Collection Accounts without further consent by the Borrowers.
The Collection Accounts are not in the name of any Person other than one or more of the

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Borrowers,
the Collateral Agent or, if debt obligations that are secured by the applicable Exchange Note have
been issued, the applicable indenture trustee. The Borrowers have not consented to the securities
intermediary of any Collection Account with respect to such Exchange Note complying with
entitlement orders of any Person other than the Collateral Agent or, if debt obligations secured by
an Exchange Note have been issued, the applicable indenture trustee.

     Section 5.13 Audits. Each Borrower agrees that, with reasonable prior notice, it will permit any authorized
representative of the Administrative Agent or the Servicer during such Borrower’s normal business
hours, to examine and audit the books of account, records, reports and other documents and
materials of such Borrower relating to the performance of such Borrowers’ obligations under this
Agreement. In addition, each Borrower will permit such representatives to make copies and extracts
of any such books and records and to discuss the same with such Borrower’s officers and Independent
certified public accountants, all at such reasonable times and as often as may reasonably be
requested. The Administrative Agent and the Servicer will, and will cause its authorized
representatives to, hold in confidence all such information except to the extent disclosure may be
required by law (and all reasonable applications for confidential treatment are unavailing) and
except to the extent that the Administrative Agent or the Servicer, as the case may be, may
reasonably determine that such disclosure is consistent with its obligations under this Agreement.
The Borrowers will maintain all such pertinent books, records and other written information for a
period of 2 years after the termination of its obligations under this Agreement.

ARTICLE VI

DEFAULTS AND REMEDIES

     Section 6.01 Facility Default.

               (a) The occurrence of (i) an Insolvency Event with respect to any Borrower or (ii) the
delivery of a notice of termination pursuant to Section 8.1(c) of the Servicing Agreement
following a Facility Servicer Event of Default (unless, in the case of this clause (ii), a
successor Servicer has accepted its appointment on or before the date specified in such notice of
termination pursuant to Section 8.4(c) of the Servicing Agreement) will constitute a
“Facility Default.”

               (b) Within 5 Business Days after an Authorized Person of Ford Credit or any Borrower first has
actual knowledge of the occurrence of a Potential Facility Default or a Facility Default, the
Borrowers will notify the Lender, the Administrative Agent and each Exchange Noteholder of its
status and what action, if any, the Borrowers are proposing to take with respect to such Potential
Facility Default or Facility Default.

               (c) Upon the occurrence of a Facility Default, without any declaration or other action on the
part of the Administrative Agent, the Lender or any Exchange Noteholder, (i) the Revolving

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Facility
will terminate and (ii) the Revolving Facility Balance, the Exchange Note Balance of each Exchange
Note and all accrued and unpaid interest on the Revolving Facility Balance and on each Exchange
Note will become immediately due and payable.

     Section 6.02 Early Termination Event.

               (a) Any of the following events or occurrences will constitute an “Early Termination
Event” with respect to the Revolving Facility:

               (i) Failure to Pay Principal. The Borrowers fail to pay or cause to be paid
(A) any principal of any Advance on the Facility Termination Date or (B) the Revolving
Facility Principal Payment Amount due on any Payment Date and, if such failure is due to an
administrative omission, mistake or technical difficulty such failure continues for 5
Business Days after the date when such principal became due;

               (ii) Failure to Pay Interest. The Borrowers fail to pay or cause to be paid
any part of the Revolving Facility Interest Payment Amount when due, and such failure
continues for 5 Business Days after the due date; or

               (iii) Breach of Covenant, Representation or Warranty. (A) Either (x) a
default in the observance or performance of any covenant or agreement of the Borrowers made
in this Agreement (other than a covenant or agreement, a default in the observance or
performance of which is specifically covered elsewhere in this Section 6.02) or (y)
any representation or warranty of the Borrowers made in this Agreement or in any
certificate or other document delivered in connection with this Agreement proves to have
been incorrect in any material respect as of the time made and, in each case, and (B)(x)
the Lender is materially and adversely affected by such default or the incorrectness of
such representation or warranty, as the case may be and (y) such default or incorrectness
is not cured on or before the 60th day after the Borrowers received a notice from the
Lender that states that it is a “Notice of Default” and specifies the default.

               (b) Within 5 Business Days after an Authorized Person of any Borrower first has actual
knowledge of the occurrence of a Potential Early Termination Event or an Early Termination Event,
the Borrowers will notify the Lender and the Administrative Agent of its status and what action, if
any, the Borrowers are taking or proposing to take with respect to such Potential Early Termination
Event or Early Termination Event.

               (c) If an Early Termination Event has occurred, then the Lender may, by notice to the Borrower
and the Administrative Agent (which notice will be effective immediately), (i) terminate the
Revolving Facility and (ii) declare the Revolving Facility Balance, together with accrued and
unpaid interest thereon to be immediately due and payable.

     Section 6.03 Revolving Facility Remedies.

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               (a) If a Facility Default or an Early Termination Event has occurred (and in the case of an
Early Termination Event, after the Lender has taken the actions described in Section
6.02(c)), subject to Article X, the Lender may (i) commence appropriate Proceedings and
pursue any of its other rights, remedies, powers or privileges
under this Agreement or otherwise and (ii) direct the Collateral Agent to (and the Collateral
Agent will) (x) institute Proceedings for the complete or partial foreclosure on the Collateral
included in the Revolving Facility Pool, (y) exercise any remedies of a secured party under the UCC
and take any other appropriate action to protect and enforce the rights and remedies of the Lender
and, to the extent of the Collateral included in the Revolving Facility Pool, the Collateral Agent
and/or (z) sell or otherwise liquidate all or any portion of the Collateral included in the
Revolving Facility Pool, or any right or interest in such Collateral, at one or more public or
private sales called and conducted in any manner permitted by law.

               (b) The proceeds of any liquidation or sale of the Collateral included in the Revolving
Facility Pool pursuant to Section 6.03(a)(ii)(z) will be applied in the following order of
priority:

               (i) to pay the Collateral Agent any amounts due with respect to the Revolving Facility
or the Revolving Facility Pool under Section 3.01(c) or Article VIII;

               (ii) to pay to the Administrative Agent any amounts due with respect to the Revolving
Facility or the Revolving Facility Pool under Section 7.05 or Article VIII;

               (iii) to make the payments described in Section 10.02(a),

               (iv) to the Lender, to pay all accrued and unpaid interest on the Advances and then
to the extent necessary to reduce the Revolving Facility Balance to zero; and

               (v) in the manner and in the priority described Section 10.02(e) and
(f).

     Section 6.04 Exchange Note Defaults.

               (a) Except to the extent otherwise provided in the related Exchange Note Supplement, any of
the following events or occurrences with respect to any Exchange Note will constitute an
“Exchange Note Default,” solely with respect to such Exchange Note:

               (i) Failure to Pay Principal. The Borrowers fail to pay or cause to be paid
any principal of such Exchange Note on the applicable Final Scheduled Payment Date and, if
such failure is due to an administrative omission, mistake or technical difficulty such
failure continues for three (3) Business Days after the date when such principal became due
or such other length of time as specified in the Exchange Note Supplement;

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               (ii) Failure to Pay Interest. The Borrowers fail to pay or cause to be paid
any part of the Exchange Note Interest Payment Amount, as specified in the Exchange Note
Supplement, when due, and such failure continues
for five (5) Business Days after the due date or such other length of time as
specified in the Exchange Note Supplement;

               (iii) Breach of Covenant. There is a default in the observance or performance
of any covenant or agreement of the Borrowers made in this Agreement or the related
Exchange Note Supplement (other than a covenant or agreement, a default in the observance
or performance of which is specifically covered by another Exchange Note Default), the
Exchange Noteholders of such Exchange Note are materially and adversely affected by such
default and such default is not cured (x) on or before the 60th day after the
Borrowers have received a notice that states that it is a “Notice of Exchange Note Default”
and specified the default or (y) within the period specified in the related Exchange Note
Supplement; and

               (iv) Breach of Representation or Warranty. Any representation or warranty of
the Borrowers made in this Agreement, the Exchange Note Supplement or in any certificate or
other document delivered in connection with this Agreement or the related Exchange Note
Supplement with respect to such Exchange Note proves to have been incorrect as of the time
made, the Exchange Noteholders of such Exchange Note are materially and adversely affected
by such incorrectness and such incorrectness is not cured (x) on or before the
60th day after the Borrowers have received a notice that states that it is a
“Notice of Exchange Note Default” and specified the default or (y) within the period
specified in the related Exchange Note Supplement.

               (b) Within 5 Business Days after an Authorized Person of any Borrower first has actual
knowledge of the occurrence of a Potential Exchange Note Default or an Exchange Note Default with
respect to any Exchange Note, the Borrowers will notify the Servicer, the Administrative Agent and
the related Exchange Noteholder of its status and what action, if any, the Borrowers are taking or
proposing to take with respect to such Potential Exchange Note Default or Exchange Note Default.
The Servicer will send a copy of such notice to any other parties to whom the related Exchange Note
has been pledged.

               (c) If an Exchange Note Default occurs and is continuing with respect to any Exchange Note,
the related Exchange Noteholder may, by notice to the Borrowers, the Servicer, the Collateral Agent
and the Administrative Agent, declare such Exchange Note to be immediately due and payable, and
upon any such declaration the Exchange Note Balance of such Exchange Note, together with accrued
and unpaid interest thereon through the date of acceleration, will become immediately due and
payable.

     Section 6.05 Exchange Note Remedies.

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               (a) If a Facility Default or an Exchange Note Default has occurred (and in the case of an
Exchange Note Default, the Exchange Noteholder has taken the action described in Section
6.04(c)), and subject to Article X, the related
Exchange Noteholder may (i) commence appropriate Proceedings and pursue any of its other
rights, remedies, powers or privileges under this Agreement or otherwise; and (ii) direct the
Collateral Agent to and the Collateral Agent will (x) institute Proceedings for the complete or
partial foreclosure on the Collateral Leases and Collateral Leased Vehicles included in the related
Reference Pool; (y) exercise any remedies of a secured party under the UCC and take any other
appropriate action to protect and enforce the rights and remedies of such Exchange Noteholder;
and/or (z) sell or otherwise liquidate all or a portion of the Collateral included in the Reference
Pool with respect to such Exchange Note, or any rights or interest included in such Collateral at
one or more public or private sales called and conducted in any manner permitted by law.

               (b) The proceeds of any liquidation or sale of the Collateral included in any Reference Pool
pursuant to Section 6.04(a)(ii)(z) will be applied in accordance with the applicable
Exchange Note Supplement.

     Section 6.06 Rights and Remedies Cumulative . No right or remedy conferred upon or
reserved to the Lender or an Exchange Noteholder in this Agreement is intended to be
exclusive of any other right or remedy, and every right and remedy, to the extent permitted
by law, will be cumulative and in addition to every other right and remedy given under this
Agreement or now or hereafter existing at law or in equity or otherwise. The assertion or
exercise of any right or remedy under this Agreement, or otherwise, will not prevent the
concurrent assertion or exercise of any other appropriate right or remedy.

     Section 6.07 Delay or Omission Not a Waiver . No delay or omission of the Lender
or any Exchange Noteholder, as applicable, to exercise any right or remedy accruing upon
any Early Termination Event or Exchange Note Default will impair any such right or remedy,
constitute a waiver of, or any acquiescence of, any such Early Termination Event or
Exchange Note Default. Every right and remedy conferred by this Article VI or by
law to the Lender or to an Exchange Noteholder, as applicable, may be exercised from time
to time, and as often as may be deemed expedient, by the Lender or by the Exchange
Noteholder, as the case may be.

     Section 6.08 Waiver of Past Defaults.

               (a) Prior to (i) the termination of the Revolving Facility and the declaration of the
Revolving Facility Balance as immediately due and payable as provided in Section 6.02(c),
or (ii) the declaration of the acceleration of the maturity of the applicable Exchange Note as
provided in Section 6.04(c), the Lender or the Exchange Noteholder, as applicable, may
waive or rescind, by notice to the Borrowers, the Servicer, the Collateral Agent and the
Administrative Agent, any past Early Termination Event or Exchange Note Default, as applicable, and
its consequences except an Early Termination Event or Exchange Note Default in the payment of
principal or interest due with respect

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to the Revolving Facility or any Exchange Note and the Servicer has deposited into the
applicable Collection Account a sum sufficient to pay:

               (i) all payments of principal of and interest on the applicable Exchange Note
and all other amounts that would then be due under such Exchange Note if the
Exchange Note Event of Default giving rise to such acceleration had not occurred;
and

               (ii) all other amounts owed in respect of the applicable Exchange Note in
accordance with this Agreement and the related Exchange Note Supplement.

               (b) Upon any such waiver or rescission, such Early Termination Event or Exchange Note Default,
as applicable, will cease to exist and be deemed to have been cured and not to have occurred, but
no such waiver or rescission will extend to any subsequent or other Early Termination Event or
Exchange Note Default, as applicable, or impair any right consequent thereto. Any such rescission,
consent or waiver by an Exchange Noteholder will be conclusive and binding upon such Exchange
Noteholder and upon all future Holders of such Exchange Note and of any Exchange Note issued upon
the registration of transfer thereof or in exchange thereof or in lieu thereof whether or not
notation of such rescission, consent or waiver is made upon such Exchange Note.

ARTICLE VII

THE ADMINISTRATIVE AGENT

     Section 7.01 Duties of the Administrative Agent.

               (a) If an Exchange Note Default, an Early Termination Event or a Facility Default has occurred
and is continuing, the Administrative Agent will exercise the rights and powers vested in it by
this Agreement and use the same degree of care and skill in their exercise as a prudent Person
would exercise or use under the circumstances in the conduct of such Person’s own affairs.

               (b) Except during the continuance of an Exchange Note Default, an Early Termination Event or a
Facility Default:

               (i) the Administrative Agent undertakes to perform such duties and only such duties as
are specifically set forth in this Agreement and no implied covenants or obligations are to
be read into this Agreement against the Administrative Agent; and

               (ii) in the absence of bad faith, negligence or willful misconduct on its part, the
Administrative Agent may conclusively rely, as to the truth of the statements and the
correctness of the opinions furnished to it, upon any certificates or opinions furnished to
it and, if required by the terms of this
Agreement, conforming to the requirements of this Agreement; provided that the
Administrative Agent will examine any such certificates and opinions to

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determine whether
or not they conform on their face to the requirements of this Agreement.

               (c) The Administrative Agent will not be liable for any action it takes or omits to take in
the absence of bad faith which it believes to be authorized or within its rights or powers.
However, the Administrative Agent may not be relieved from liability for its own willful
misconduct, negligence or bad faith, except that:

               (i) this Section 7.01 does not limit Section 7.02;

               (ii) the Administrative Agent will not be liable for any error of judgment made in the
absence of bad faith by an Authorized Person unless it is proved that the Administrative
Agent was negligent in ascertaining the pertinent facts; and

               (iii) the Administrative Agent will not be liable with respect to any action it takes
or omits to take in the absence of bad faith in accordance with a direction received by it
from the Lender or any Exchange Noteholder with respect to the exercise of remedies
pursuant to Article VI.

               (d) The Administrative Agent will not be liable for interest on any money received by it
except as the Administrative Agent may agree with the Borrowers.

               (e) Money held in trust by the Administrative Agent need not be segregated from other funds
except to the extent required by law or this Agreement.

               (f) The Administrative Agent, if it has reasonable grounds to believe that repayment of funds
advanced by it or adequate indemnity satisfactory to it against such risk or liability is not
reasonably assured to it, is not required to expend or risk its own funds or otherwise incur
financial liability in the performance of any of its duties under this Agreement or in the exercise
of any of its rights or powers by any provision of this Agreement.

               (g) Every provision of this Agreement relating to the conduct or affecting the liability of or
affording protection to the Administrative Agent is subject to the provisions of this Section
7.01.

               (h) The Administrative Agent will not be charged with knowledge of the occurrence of any
Potential Facility Default, Facility Default, Potential Exchange Note Default, Exchange Note
Default, Potential Early Termination Event or Early Termination Event unless either (i) an
Authorized Person of the Administrative Agent has actual knowledge of such occurrence or (ii)
notice of such occurrence has been given to the Administrative Agent in accordance with this
Agreement.

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     Section 7.02 Rights of Administrative Agent.

               (a) Before the Administrative Agent acts or refrains from acting, it may require an Officer’s
Certificate and/or an Opinion of Counsel. The Administrative Agent will not be liable for any
action it takes or omits to take in the absence of bad faith in reliance on an Officer’s
Certificate or Opinion of Counsel. However, the Administrative Agent will examine any such
Officer’s Certificates and Opinions of Counsel to determine whether or not they conform on their
face to the requirements of this Agreement.

               (b) The Administrative Agent may execute any of the trusts or powers under this Agreement or
perform any duties under this Agreement either directly or by or through agents or attorneys or a
custodian or nominee, and the Administrative Agent will not be responsible for any misconduct or
negligence on the part of, or for the supervision of, any such agent, counsel, custodian or nominee
appointed with due care by it under this Agreement.

               (c) The Administrative Agent may consult with counsel, and the advice or opinion of counsel
with respect to legal matters relating to this Agreement will be full and complete authorization
and protection from liability in respect to any action taken, omitted or suffered by it under this
Agreement in the absence of bad faith and in accordance with the advice or opinion of such counsel.

               (d) The Administrative Agent is under no obligation to exercise any of the rights or powers
vested in it by this Agreement or to honor the request or direction of any of the Exchange
Noteholders pursuant to this Agreement unless such Exchange Noteholders have offered to the
Administrative Agent reasonable security or indemnity satisfactory to it from and against the
reasonable costs, expenses and disbursements that might be incurred by the Administrative Agent in
complying with such request or direction.

               (e) The Administrative Agent may rely and will be protected in acting or refraining from
acting upon any resolution, certificate, statement, opinion, report, notice, request, direction,
consent, order, bond, debenture or other paper or document believed by it to be genuine and to have
been signed or presented by the proper Person. The Administrative Agent need not investigate any
fact or matter stated in any such document.

     Section 7.03 Individual Rights of Administrative Agent. The Administrative Agent, in
its individual or any other capacity, may deal with the Borrowers or any of their Affiliates with
the same rights it would have if it were not Administrative Agent.

     Section 7.04 Administrative Agent’s Disclaimer. The Administrative Agent will not be
(a) responsible for, and does not make any representation as to, the validity or adequacy of this
Agreement, any Exchange
Note Supplement or any of the Exchange Notes, (b) accountable for the Borrowers’ use of the
funds advanced under the Revolving Facility, or (c) responsible for any statement of the Borrowers
in this Agreement (all of

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which will be deemed to be statements of the Borrowers) other than the
certificate of authentication of the Administrative Agent.

     Section 7.05 Compensation. The Borrowers or their respective Tilting Company
Administrators will pay or cause to be paid to Administrative Agent as compensation for the
Administrative Agent’s services under this Agreement such fees as have been separately agreed upon
from time to time between the Borrowers and the Administrative Agent. The Administrative Agent’s
compensation will not be limited by any law on compensation of a trustee of an express trust. The
Borrowers or their respective Tilting Company Administrators will reimburse the Administrative
Agent (or cause the Administrative Agent to be reimbursed) for all reasonable out-of-pocket
expenses incurred or made by the Administrative Agent, including costs of collection, and the
reasonable compensation, expenses and disbursements of the Administrative Agent’s agents, counsel,
accountants and experts, but excluding any expenses incurred by the Administrative Agent through
the Administrative Agent’s own willful misconduct, negligence or bad faith.

     Section 7.06 Replacement of Administrative Agent.

               (a) No resignation or removal of the Administrative Agent, and no appointment of a successor
Administrative Agent, will become effective until the acceptance of appointment by the successor
Administrative Agent pursuant to this Section 7.06. The Administrative Agent may resign by
notifying the Lender. The Lender may remove the Administrative Agent with or without cause by
notifying the Administrative Agent and the Borrowers and following such removal or resignation may
appoint a successor Administrative Agent. Following the effective removal or resignation of any
Person in the capacity of Administrative Agent, the obligations (solely in the case of obligations
performed, or required to be performed, prior to such termination) of such Person in such capacity
will terminate.

               (b) The Lender will remove the Administrative Agent if:

               (i) the Administrative Agent fails to comply with Section 7.08;

               (ii) an Insolvency Event occurs with respect to the Administrative Agent;

               (iii) a receiver or other public officer takes charge of the Administrative Agent or
its property; or

               (iv) as evidenced by an Opinion of Counsel, the Administrative Agent becomes legally
unable to act or otherwise incapable of acting as Administrative Agent.

               (c) If the Administrative Agent resigns or is removed or if a vacancy exists in the office of
the Administrative Agent for any reason, the Borrowers will, appoint a successor Administrative
Agent promptly.

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               (d) Not later than 5 Business Days following the appointment of a successor Administrative
Agent, the retiring Administration Agent will transfer to such successor Administrator Agent, and
such successor Administrative Agent will acquire from the retiring Administrative Agent, its entire
membership interest in the Collateral Agent, and take all other actions necessary to vest in such
successor Administrative Agent all rights with respect to the ownership and control of, and
transfer to such successor all records maintained with respect to, the Collateral Agent. Any
successor Administrative Agent may not include, and the membership interest in the Collateral Agent
may not be transferred to, Ford Credit or any of its Affiliates.

               (e) Any successor Administrative Agent must execute and deliver an acceptance of its
appointment to the retiring Administrative Agent, the Borrowers and the Servicer and thereupon the
resignation or removal of the retiring Administrative Agent will become effective, and such
successor Administrative Agent will have all the rights, powers, duties and obligations of the
Administrative Agent under this Agreement. The Borrowers will pay all amounts accrued through the
effective date and unpaid to the retiring Administrative Agent upon the retiring Administrative
Agent’s resignation or removal. The successor Administrative Agent will deliver a notice of its
succession to the Exchange Noteholders. The retiring Administrative Agent will promptly transfer
all property held by it as Administrative Agent to the successor Administrative Agent.

               (f) If a successor Administrative Agent does not take office within 60 days after the retiring
Administrative Agent resigns or is removed, the retiring Administrative Agent, the Borrowers, the
Lenders or any Exchange Noteholder may petition any court of competent jurisdiction for the
appointment of a successor Administrative Agent. If the Administrative Agent fails to comply with
Section 7.08, and the Lender fails to remove the Administrative Agent pursuant to
Section 7.06(b)(i), any Exchange Noteholder may petition any court of competent
jurisdiction for the removal of the Administrative Agent and the appointment of a successor
Administrative Agent.

     Section 7.07 Successor Administrative Agent by Merger, Conversion or Transfer. If the
Administrative Agent consolidates with, merges or converts into, or transfers all or substantially
all of its corporate trust business or assets to, another Person, the resulting, surviving or
transferee Person will be the successor Administrative Agent so long as such Person is otherwise
qualified and eligible under Section 7.08 and complies with Section 7.06(d) and
Section 7.06(e).

     Section 7.08 Eligibility; Disqualification. The Administrative Agent or its parent
must have a combined capital and surplus of at least $50,000,000 as set forth in its most recent
annual published report of condition, must have a long-term unsecured debt rating of investment
grade by each of S&P and Moody’s and must not be Ford Credit or any Affiliate of Ford Credit.

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ARTICLE VIII

INDEMNIFICATION

     Section 8.01 Indemnification of Administrative Agent and Collateral Agent. The
Borrowers will, or will cause their respective Titling Company Administrators to, indemnify, defend
and hold harmless the Administrative Agent, the Collateral Agent and their respective officers,
directors, employees and agents (each, an “Indemnified Person”), from and against any and
all costs, expenses, losses, damages, claims and liabilities incurred by it in connection with the
acceptance, administration and performance of their respective duties and obligations under this
Agreement, including the costs and expenses of defending themselves against any loss, damage, claim
or liability incurred by it in connection with the exercise or performance of any of its powers or
duties under this Agreement, but excluding any cost, expense, loss, damage, claim or liability
incurred by the Administrative Agent through the Administrative Agent’s own willful misconduct,
negligence or bad faith.

     Section 8.02 Indemnification Procedures. Promptly upon receipt by an Indemnified
Person, of notice of the commencement of any Proceeding against any such Indemnified Person, such
Indemnified Person will, if a claim in respect of such Proceeding is to be made under Section
8.01, notify the Borrowers and their respective Titling Company Administrators of the
commencement of such Proceeding. Failure by the Indemnified Person to so notify the Borrowers and
their respective Titling Company Administrators will not relieve the Borrowers and their respective
Titling Company Administrators of their obligations under this Section 8.02;
provided that the Borrowers and their respective Titling Company Administrators have not
been materially prejudiced by such failure to so notify and notice is given within 180 days of the
Indemnified Person learning of such Proceeding.

          The Borrowers, or, if the Borrowers so cause, their respective Titling Company Administrators,
may participate in and assume the defense and settlement of any such Proceeding at their expense,
and no settlement of such Proceeding may be made without the approval of the Borrowers or their
respective Titling Company Administrators, as applicable, and such Indemnified Person, which
approvals will not be unreasonably withheld, delayed or conditioned. After notice from the
Borrowers to the Indemnified Person of the intention of the Borrowers to assume the defense of such
Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long
as the Borrowers so assume the defense of such Proceeding in a manner reasonably satisfactory
to the Indemnified Person, the Borrowers will not be liable for any legal expenses of counsel to
the Indemnified Person unless there is a conflict between the interests of the Borrowers, on one
hand, and an Indemnified Person, on the other hand, in which case the Borrowers will pay for the
separate counsel reasonably acceptable to the Borrowers and such Indemnified Person.

     Section 8.03 Survival.

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          The payment obligations of the Borrowers to the Administrative Agent and the Collateral Agent
pursuant to this Article VIII will survive the resignation or removal of the Administrative
Agent and the termination of this Agreement. When the Administrative Agent or the Collateral Agent
incurs expenses after the occurrence of a Facility Default, the expenses are intended to constitute
expenses of administration under the Bankruptcy Code or any other applicable federal or State
bankruptcy, insolvency or similar law.

ARTICLE IX

AMENDMENTS

     Section 9.01 Amendments Without Consent of Exchange Noteholders.

               (a) The Borrowers, the Collateral Agent, the Lender and the Administrative Agent may enter
into one or more amendments to this Agreement and any Exchange Note Supplement, without the consent
of any Exchange Noteholder, to:

               (i) cure any ambiguity in or to correct or supplement the description of any property
subject to the security interest granted under this Agreement or any Exchange Note
Supplement, or better to assure, convey and confirm unto the Collateral Agent any property
subject or required to be subjected to the security interest granted under this Agreement
or any Exchange Note Supplement, or to subject to the security interest granted under this
Agreement or any Exchange Note Supplement additional property;

               (ii) add to the covenants of the Borrowers, or to surrender any right or power
conferred upon the Borrowers in this Agreement or any Exchange Note Supplement, in each
case for the benefit of the Secured Parties;

               (iii) convey, transfer, assign, mortgage or pledge any property to the Collateral
Agent;

               (iv) to cure any ambiguity in or to correct or supplement any provision in this
Agreement or any Exchange Note Supplement that may be inconsistent with any other provision
in this Agreement or any Exchange Note
Supplement or in any amendment or to make any other provisions with respect to matters
or questions arising under this Agreement or any Exchange Note Supplement which will not be
inconsistent with the provisions of this Agreement or any Exchange Note Supplement;
provided that such action does not materially adversely affect the interests of the
Exchange Noteholders; or

               (v) to evidence the acceptance of the appointment under this Agreement of a successor
Administrative Agent or successor Collateral Agent.

33

 

     All amendments pursuant to this Section 9.01 will be in form reasonably satisfactory
to the Administrative Agent. The Administrative Agent and the Collateral Agent are authorized to
join in the execution of any such amendment and to make any further appropriate agreements and
stipulations that may be contained in such amendment.

               (b) The Borrowers, the Collateral Agent, the Lender and the Administrative Agent may enter
into one or more amendments to this Agreement or any Exchange Note Supplement, without the consent
of any Exchange Noteholder (including in connection with an amendment to an Exchange Note
Supplement, the Exchange Noteholder of the Exchange Note issued pursuant to such supplement), to
add any provisions to, or change any manner or eliminate any of the provisions of, this Agreement
or any Exchange Note Supplement or of modify in any manner the rights of any Exchange Noteholder
under this Agreement and its related Exchange Note Supplement, except as provided in such Exchange
Note Supplement; provided that the Borrowers deliver an Officer’s Certificate to the
Administrative Agent to the effect that such amendment will not materially adversely affect the
interests of any Exchange Noteholder (other than Exchange Noteholders who have consented to such
amendment).

     Section 9.02 Amendments with Consent of Exchange Noteholders(a) Subject to Section
9.01, this Agreement may be amended (in any manner and for any purpose) by the Borrowers, the
Collateral Agent, the Lender and the Administrative Agent if each Exchange Noteholder of an
Outstanding Exchange Note has consented to such amendment.

               (b) Subject to Section 9.01, any Exchange Note Supplement may be amended (in any
manner and for any purpose) by the Borrowers, the Collateral Agent, the Lender and the
Administrative Agent if the Exchange Noteholder of the related Outstanding Exchange Note has
consented to such amendment.

     Section 9.03 Tax Opinion Requirement. Notwithstanding any other part of this
Article IX, no amendment to this Agreement or any Exchange Note Supplement will be
effective unless the Borrowers deliver an Opinion of Counsel to the Administrative Agent, in form
reasonably satisfactory to it, to the effect that such amendment will not (a) cause any Exchange
Note to be deemed sold or exchanged for purposes of Section 1001 of the Code or (b) cause
any Borrower to be treated as an association or publicly traded partnership taxable as a
corporation for U.S. federal income tax purposes.

     Section 9.04 Execution of Amendments. In executing any amendment permitted by this
Article IX, the Administrative Agent will be entitled to receive, and subject to
Section 7.01 and Section 7.02, will be fully protected in relying upon, an Opinion
of Counsel stating that (i) the execution of such amendment is authorized or permitted by the
Agreement and (ii) all conditions precedent to the execution and delivery of such amendment have
been satisfied. The Administrative Agent may, but is not be obligated to, enter into any such
amendment that affects the Administrative Agent’s own rights, powers, duties, obligations,
liabilities or immunities under the Agreement.

34

 

ARTICLE X

CREDITORS’ RELATIONS

     Section 10.01 Allocation of Collections; Intercreditor Agreement. The Lender and the
Administrative Agent, by entering into this Agreement, and each Exchange Noteholder, by accepting
the related Exchange Note, acknowledges and agrees that, notwithstanding that the Revolving
Facility and the Exchange Notes are secured, pursuant to Section 3.01, by a single security
interest in all of the Collateral (i) each such Person will be subject to the limitation of
recourse, waiver of claims and rights, and subordination provisions set forth in this Article
X, (ii) except following a Facility Default or an Exchange Note Default, no Exchange Noteholder
will have any recourse to, or right to payment from, the Collections on the Revolving Facility Pool
and (iii) all Collections will be applied in accordance with the priorities and procedures set
forth in this Article X.

     Section 10.02 Application of Collections on the Revolving Facility Pool. On each
Payment Date (unless a Facility Default has occurred prior to such Payment Date), the
Administrative Agent will (based on the information contained in the Monthly Revolving Facility
Pool Report delivered before such Payment Date pursuant to Section 9.1 of the Servicing
Agreement) withdraw from the Collection Account with respect to the Revolving Facility Pool an
amount equal to the Collections for the Revolving Facility Pool and such Payment Date and apply
such amounts, together with any Revolving Facility Pool Additional Amounts, in accordance with the
following priorities (to the extent such amounts that have not been paid from Collections retained
by Ford Credit pursuant to Section 4.3(b) of the Servicing Agreement and Section
2.04 of this Agreement):

               (a) to the Servicer, on behalf of the Holding Companies, the Revolving Facility Pool Servicing
Fee for the related Collection Period;

               (b) to the Lender as payment of interest on the Advances, an amount equal to the Revolving
Facility Interest Payment Amount;

               (c) to the Lender as a payment of principal of the Advances in an amount equal to the
Revolving Facility Principal Payment Amount, until the Revolving Facility Balance has been reduced
to zero;

               (d) if and to the extent that the Borrowers so elect (by direction to the Administrative Agent
on or prior to the applicable Payment Date, which may be in the form of a standing direction) or if
the Revolving Period has been terminated (or a Facility Default has occurred), to the Lender as an
additional payment of principal of the Advances, all amounts remaining, until the Revolving
Facility Balance has been reduced to zero;

               (e) to pay any amounts that remain owing and unpaid to any Person under any indemnity or other
payment agreement made by the Holder of the

35

 

related Collateral Specified Interest Certificate (or
by the Servicer acting on its behalf), including any Allocation and Reconciliation Agreement; and

               (f) to or at the direction of the Holding Companies, as Holders of the Collateral Specified
Interest Certificates, all remaining funds (to be allocated among the Holding Companies in the
manner separately agreed among the Holding Companies, including in any Allocation and
Reconciliation Agreement).

     Section 10.03 Application of Collections on the Reference Pools Where No Facility Default
Has Occurred. On each Payment Date (unless a Facility Default has occurred prior to such
Payment Date), the Administrative Agent will, with respect to each Reference Pool (based on the
information contained in the related Monthly Exchange Note Report delivered before such Payment
Date pursuant to Section 9.1 of the Servicing Agreement), withdraw from the related
Collection Account an amount equal to the Collections for such Reference Pool and such Payment Date
and (except as otherwise specified in the related Exchange Note Supplement) apply such amounts,
together with any Shared Amounts allocated to such Reference Pool, in accordance with the terms of
the applicable Exchange Note Supplement.

     Section 10.04 Application of Collections Following a Facility Default. On each
Payment Date following the occurrence of a Facility Default, the Administrative Agent will (absent
contrary instruction from the Exchange Noteholder pursuant to Section 6.08(a)), with
respect to the Revolving Facility Pool and each Reference Pool (based on the information contained
in the Monthly Revolving Facility Pool Report or the related Monthly Exchange Note Report delivered
before such Payment Date), withdraw from the related Collection Account an amount equal to the
Collections for the Revolving Facility Pool or such Reference Pool, as the case may be, and on such
Payment Date and (except as otherwise specified in the related Exchange Note Supplement) apply such
amounts, in accordance with the following priorities:

               (a) in the manner and in the priorities set forth in Section 10.02(a) through
(c) with respect to the Revolving Facility Pool or, with respect to such Reference Pool and
the related Exchange Note in the following order of priority:

               (i) to the Servicer, the Reference Pool Servicing Fee and Advance Reimbursement Amount
for such Reference Pool and the related Collection Period, in each case to the extent that
such amounts have not been paid from the Collections in respect of such Reference Pool that
have been retained by the Servicer pursuant to the applicable Servicing Supplement;

               (ii) to the related Exchange Noteholder, the applicable Exchange Note Interest Payment
Amount; and

               (iii) to the related Exchange Noteholder, (x) on any Payment Date other than an
Exchange Note Redemption Date, the applicable Exchange Note Principal Payment Amount, as a
payment of principal of such Exchange Note until the Exchange Note Balance of such Exchange
Note has been

36

 

reduced to zero or (y) on an Exchange Note Redemption Date, an amount equal
to the Exchange Note Purchase Price (to the extent such amount has not been paid pursuant
to clause (ii) above);

               (b) without priority to the Lender or any Exchange Noteholder, (A) with respect to the
Revolving Facility Allocation Percentage of the remaining amount, to pay any amounts due and unpaid
under Section 10.02(a) through (c) and (B) with respect to the Exchange Note
Allocation Percentage of such amount, with respect to each Exchange Note, to pay any amounts due
and unpaid in accordance with the following order of priority:

               (i) in the priority set forth in Section 10.04(a)(i) through (iii);

               (ii) to the related Exchange Noteholder, as an additional payment of principal of such
Exchange Note, all amounts necessary to cover any shortfall in payment on any debt
obligations that are secured by such Exchange Note up to an amount that would result in the
Exchange Note Balance of such Exchange Note being reduced to zero; and

               (iii) to the Reserve Account established in connection with each Exchange Note, the
amount required to reinstate the amount in that Reserve Account up to the Required Reserve
Amount;

               (c) all amounts remaining will be applied pro rata, based on the amounts due,
to pay any amounts due and unpaid under Section 10.02(a) through (c) with respect
to the Revolving Facility and, with respect to each Exchange Note, in the priority set forth in
Section 10.04(b)(i) through (iii);

               (d) to pay any amounts that remain owing and unpaid to any Person under any indemnity or other
payment agreement made by the Holder of the related Collateral Specified Interest Certificate (or
by the Servicer acting on its behalf), including any Allocation and Reconciliation Agreement; and

               (e) to or at the direction of the Holding Companies, as Holders of the Collateral Specified
Interest Certificates, all remaining funds (to be allocated among the Holding Companies in the
manner separately agreed among the Holding Companies, including in any Allocation and
Reconciliation Agreement).

     Section 10.05 Modified Priorities Following Liquidation. Notwithstanding Section
10.02, Section 10.03 and Section 10.04, following the liquidation of any
portion of the Collateral pursuant to Article VI, any proceeds of such liquidation will be
distributed in the manner and in the priority set forth in Section 6.03(b) or Section
6.05(b), as applicable.

     Section 10.06 Application of Liquidation Proceeds. In the event that any liquidation
proceeds with respect to any Collateral cannot be identified, after reasonable

37

 

efforts by the
Servicer or other Person required to make such identification, as relating to the Revolving
Facility Pool or a specific Reference Pool, then any such amounts will be deemed to constitute
Collections with respect to the Revolving Facility Pool and each Reference Pool, to be allocated to
such pools pro rata based on the outstanding Revolving Facility Balance and the
Exchange Note Balances of the related Exchange Notes.

     Section 10.07 Limited Recourse; Subordination of Claims.

               (a) The obligations of the Borrowers under this Agreement and any Exchange Notes are solely
the obligations of the Borrowers and do not represent any obligation or interest in any assets of
the Servicer, the Holding Companies, the Collateral Agent, the Administrative Agent or any other
Person.

               (b) The Lender, the Collateral Agent and the Administrative Agent, by entering into this
Agreement, and each Exchange Noteholder, by accepting an Exchange Note, acknowledges and agrees
that:

               (i) except to the extent of funds allocated to such Exchange Noteholder pursuant to
this Article X and any applicable Exchange Note Supplement, any claim against the
Borrowers in respect of any Secured Obligations under this Agreement by (A) the Lender will
be limited in recourse to the assets of the Borrowers that are included in the Revolving
Facility Pool and (B) any Exchange Noteholder will be limited in recourse to the assets of
the Borrowers that are included in the related Reference Pool; and

               (ii) none of the Lender, the Administrative Agent or any Exchange Noteholder has any
right, title or interest in or to any other assets of the Borrowers, whether allocated to
the Collateral Specified Interest or any other Specified Interest of the Borrowers
(“Other Assets”).

               (c) If, notwithstanding Section 10.07(b), the Lender or any Exchange Noteholder (or
the Administrative Agent, on behalf of either of them) either (i) asserts an interest in, claim to,
or benefit from, the Other Assets or (ii) is deemed to have any such interest in, claim to, or
benefit from the Other Assets, whether by operation of law, legal process, pursuant to insolvency
laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Lender
and each Exchange Noteholder further acknowledges and agrees that any such interest, claim or
benefit in, to or from the Other Assets is expressly subordinated to (A) the indefeasible payment
in full of the other obligations and liabilities of the Borrowers including Obligations under this
Agreement or any Exchange Note, (B) the holders of any Securities (as defined in the related
Titling Company Agreement) relating to any Specified Interest other than the Collateral Specified
Interest and (C) parties to any undertaking, agreement, contract or other written obligation of the
Holders of the Certificates relating to such other Specified Interest (as defined in the related
Titling Company Agreement), the payments under which are derived in any material part from or
collateralized by amounts received with respect to the related Specified Assets (as defined in the
related Titling Company Agreement) of such other Specified Interest (the “Other
Liabilities”), which, in each case,

38

 

pursuant to this Agreement, any Exchange Note or any other
relevant documents, 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 distributions or application under applicable law, including
insolvency laws, and whether or not asserted against the Borrowers), including the payment of
post-petition interest on such other obligations and liabilities. This subordination agreement is
deemed a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.

               (d) The Administrative Agent and the Lender further acknowledge and agree and each Exchange
Noteholder, by taking delivery of an Exchange Note, will be deemed to further acknowledge and agree
that no adequate remedy at law exists for a breach of this Section 10.07 and this
Section 10.07 may be enforced by an action for specific performance.

               (e) The Lender, by entering into this Agreement, each Exchange Noteholder, by taking delivery
of an Exchange Note, and the Administrative Agent on behalf of itself and each such Person,
irrevocably makes the election afforded to secured creditors by Section 1111(b)(1)(A)(i) of the
Bankruptcy Code to receive the treatment afforded by Section 1111(b)(2) of the Bankruptcy Code with
respect to any secured claim that such Person may have at any time against any Other Assets
(including any Specified Interest of any Borrower other than the Collateral Specified Interest).

               (f) This Section 10.07 is for the third party benefit of the holders, pledgees or
other beneficiaries of any Other Liabilities and will survive the termination of this Agreement.

ARTICLE XI

MISCELLANEOUS

     Section 11.01 Compliance Certificates and Opinions, etc. Upon any application or
request by the Borrowers to the Administrative Agent to take any action under this Agreement, the
Borrowers will furnish to the Administrative Agent (i) an Officer’s Certificate stating that all
conditions precedent provided for in this Agreement relating to the proposed action have been
satisfied and (ii) an Opinion of Counsel stating that in the opinion of such counsel all such
conditions precedent have been satisfied.

     Section 11.02 Form of Documents Delivered to Administrative Agent.

               (a) Any certificate or opinion of an Authorized Person of the Borrowers may be based, insofar
as it relates to legal matters, upon a certificate or opinion of, or representations by, counsel,
unless such officer knows, or in the exercise of reasonable care should know, that such certificate
or opinion of, or
representations with respect to the matters upon which such officer’s certificate
or opinion is based are erroneous. Any such certificate of an Authorized Person or opinion of
counsel may be based, insofar as it relates to factual matters, upon a certificate or opinion of,
or

39

 

representations by, an officer or officers of the Servicer or the applicable Titling Company
Administrator stating that the information with respect to such factual matters is in the
possession of the Servicer or such Titling Company Administrator, unless such officer or counsel
knows, or in the exercise of reasonable care should know, that the certificate or opinion of, or
representations with respect to such matters are erroneous.

               (b) Where any Person is required to make, give or execute two or more applications, requests,
comments, certificates, statements, opinions or other instruments under this Agreement, they may be
consolidated in one instrument.

     Section 11.03 Notices, etc. Any request, demand, authorization, direction, notice,
consent, waiver or other documents provided or permitted by this Agreement must be in writing and
will be sufficient if made as follows:

               (a) if to the Administrative Agent, if delivered by hand or sent by facsimile with telephone
confirmation on the same day by the sender, overnight delivery, electronic mail or registered first
class mail, postage prepaid, to the Administrative Agent at:

U.S. Bank National Association

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

Attention: Ford Collateral Agency

Telephone: 312-325-8904

Facsimile: 312-325-8905

or at any other address previously furnished by notice to the other parties hereto by the
Administrative Agent.

               (b) if to the Borrowers, if delivered by hand, or sent by facsimile, overnight delivery or
registered first class mail, postage prepaid, to the Borrowers at:

c/o Ford Motor Credit Company

c/o Ford Motor Company

World Headquarters

One American Road, Suite 801-C1

Dearborn, Michigan 48126

Attention: Ford Credit SPE Management Office

Telephone: (313) 594-3495

Facsimile: (313) 390-4133

with a copy to:

Ford Motor Credit Company

One American Road, Suite 2411

Dearborn, Michigan 48126

40

 

Attention: Corporate Secretary

Telephone: (313) 322-3000

Facsimile: (313) 248-7613

or at any other address previously furnished by notice to the Administrative Agent by the
Borrowers.

               (c) if to the Collateral Agent, if delivered by hand, or sent by facsimile, overnight delivery
or registered first class mail, postage prepaid, to the Collateral Agent at:

HTD Leasing LLC

c/o U.S. Bank National Association

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

Attention: Ford Collateral Agency

Telephone: 312-325-8904

Facsimile: 312-325-8905

or at any other address previously furnished by notice to the Administrative Agent by the
Collateral Agent.

               (d) if to the Lender, if delivered by hand, or sent by facsimile, overnight delivery or
registered first class mail, postage prepaid, to the Lender at:

Ford Motor Credit Company

One American Road, Suite 2411

Dearborn, Michigan 48126

Attention: Corporate Secretary

Telephone: (313) 322-3000

Facsimile: (313) 248-7613

or at any other address previously furnished by notice to the Administrative Agent by the Lender.

               (e) if to any Exchange Noteholder, at the address specified in the related UCC Notice of
Security Interest or at such other address previously furnished by notice to the Administrative
Agent by such Exchange Noteholder.

     Section 11.04 Alternate Payment and Notice Provisions. Notwithstanding any provision
of this Agreement or any of the Exchange Notes to the contrary, the Borrowers may enter into any
agreement with any Exchange Noteholder providing for a method of payment or a method of notice by
the Administrative Agent to such Exchange Noteholder that is different from the methods provided
for in this Agreement for such payments or notices. The Borrowers will furnish to the
Administrative Agent a copy of each such agreement and the Administrative Agent will, if such
agreement is reasonably acceptable

41

 

to the Administrative Agent, cause payments to be made and
notices to be given in accordance with such agreements.

     Section 11.05 Benefits of Agreement. Nothing in this Agreement, express or implied,
will give to any Person, other than the parties to this Agreement and their successors under this
Agreement, and the Secured Parties, any benefit or any legal or equitable right, remedy or claim
under this Agreement.

     Section 11.06 GOVERNING LAW; SUBMISSION TO JURISDICTION LAW. THIS AGREEMENT WILL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCEPT THAT,
PURSUANT TO SECTION 3809 OF TITLE 12 OF THE DELAWARE CODE, THE DOCTRINE OF MERGER WILL NOT BE
APPLICABLE TO THIS AGREEMENT.

     Section 11.07 Successors and Assigns. All covenants and agreements in this Agreement by the Borrowers will bind their successors
and assigns, whether so expressed or not. All agreements of the Administrative Agent in this
Agreement will bind its successors.

     Section 11.08 Severability. If any one or more of the covenants, agreements,
provisions or terms of this Agreement is held invalid, illegal or unenforceable, then such
covenants, agreements, provisions and terms will be deemed severable from the remaining covenants,
agreements, provisions and terms of this Agreement and will in no way affect the validity, legality
or enforceability of the other covenants, agreements, provisions or terms of this Agreement.

     Section 11.09 Counterparts. This Agreement may be executed in any number of
counterparts, each of which counterparts will be an original, and all of which counterparts will
together constitute one and the same instrument.

     Section 11.10 Headings. The various headings in this Agreement are included for
convenience only and will not affect the meaning or interpretation of any provision of this
Agreement.

     Section 11.11 Borrower Obligations. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Administrative Agent under this Agreement or any certificate
or other writing delivered in connection with this Agreement, against (i) the Administrative Agent
in its individual capacity, (ii) any partner, owner, beneficiary, agent, officer, director,
employee or agent of the Administrative Agent, each in its individual capacity or (iii) any holder
of a beneficial interest in the Administrative Agent except as any such Person may have expressly
agreed (it being understood that the Administrative Agent has no such obligation in its individual
capacity).

     Section 11.12 No Petition. Each of the Administrative Agent, the Collateral Agent and
the Lender, by entering into this Agreement, and each Exchange Noteholder, by taking delivery of an
Exchange Note, covenants and agrees that for a period of one

42

 

year and one day after payment in full
of all Obligations under this Agreement and the Exchange Notes, the outstanding Certificates and
the outstanding Securities (as defined in the related Titling Company Agreement), it will not
institute against the Titling Companies or the Holding Companies, or join in any institution
against the Titling Companies or the Holding Companies of, any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under any federal or State
bankruptcy or similar law in connection with any obligations relating to this Agreement or any of
the other Basic Documents.

[SIGNATURE PAGE FOLLOWS]

43

 

     Executed:

	 	 	 	 	 
	 	CAB EAST LLC,

as a Titling Company

 	 
	 	By:  	/s/ Susan J. Thomas
 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	CAB WEST LLC,

as a Titling Company

 	 
	 	By:  	/s/ Susan J. Thomas
 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	FCALM, LLC,

as a Titling Company

 	 
	 	By:  	/s/ Susan J. Thomas
 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	FORD MOTOR CREDIT COMPANY,

as Lender and as Servicer

 	 
	 	By:  	/s/ David M. Brandi
 	 
	 	 	Name:  	David M. Brandi 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

[Signature Page to Credit and Security Agreement 1 of 2]

 

 

	 	 	 	 	 	 	 

	 	 	U.S. BANK NATIONAL ASSOCIATION,	 	 
	 	 	not in its individual capacity but solely as	 	 
	 	 	Administrative Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By: :

Name:
	 	/s/ Melissa A. Rosal
 

Melissa A. Rosal
	 	 
	 

	 	Title:
	 	Vice President	 	 
	 
	 	 	 	 	 	 
	 	 	HTD LEASING LLC,	 	 
	 	 	as Collateral Agent	 	 
	 
	 	 	 	 	 	 
	 

	 	By: :

Name:
	 	/s/ Melissa A. Rosal
 

Melissa A. Rosal
	 	 
	 

	 	Title:
	 	Authorized Person	 	 

[Signature Page to Credit and Security Agreement 2 of 2]

 

Exhibit A

FORM OF 2006-[X] EXCHANGE NOTE

          THIS 2006-[X] EXCHANGE NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER ANY SECURITIES OR BLUE SKY LAW OF ANY
STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING THIS EXCHANGE NOTE, AGREES THAT THIS
EXCHANGE NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE TRANSFERRED ONLY IN COMPLIANCE WITH
THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY TO EITHER (1) A “QUALIFIED INSTITUTIONAL
BUYER” WITHIN THE MEANING THEREOF IN RULE 144A UNDER THE SECURITIES ACT, THAT IS ALSO A QUALIFIED
PURCHSER (A “QUALIFIED PURCHASER”) WITHIN THE MEANING THEREOF IN SECTION 3(C)(7) OF THE
INVESTMENT COMPANY ACT OF 1940, AS AMENDED, (2) AN INSTITUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING THEREOF IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE SECURITIES ACT THAT IS
A QUALIFIED PURCHASER OR (3) TO THE HOLDING COMPANIES OR THEIR RESPECTIVE AFFILIATES, IN EACH CASE
IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY
LAWS OF THE STATES OF THE UNITED STATES, AND SUBJECT TO THE RECEIPT BY THE BORROWERS OF SUCH OTHER
EVIDENCE ACCEPTABLE TO THE BORROWERS THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER IS IN COMPLIANCE
WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS.

          THIS EXCHANGE NOTE MAY BE TRANSFERRED ONLY IN WHOLE AND NOT IN PART. ANY TRANSFER IN
VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID FROM THE BEGINNING, AND
WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE, NOTWITHSTANDING ANY
INSTRUCTIONS TO THE CONTRARY TO THE LENDER, THE BORROWERS, THE ADMINISTRATIVE AGENT OR ANY
INTERMEDIARY.

          HOLDERS OF THIS EXCHANGE NOTE WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT THEY
EITHER (A) ARE NOT, AND ARE NOT ACQUIRING AND HOLDING THE 2006-[X] EXCHANGE NOTE ON BEHALF OF, A
PLAN OR A GOVERNMENTAL OR CHURCH PLAN THAT IS SUBJECT TO SECTION 406 OF ERISA OR SECTION 4975 OF
THE CODE OR TO ANY FEDERAL, STATE, FOREIGN OR LOCAL LAW THAT IS SUBSTANTIALLY SIMILAR TO THE
PROHIBITED TRANSACTION PROVISIONS OF SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE OR (B) THEIR
ACQUISITION AND HOLDING OF THE 2006-[X] EXCHANGE NOTE THROUGHOUT THE PERIOD THAT IT HOLDS THE
2006-[X] EXCHANGE NOTE WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER SECTION 406 OF
ERISA OR SECTION 4975 OF THE CODE (OR, IN THE CASE OF A GOVERNMENTAL OR CHURCH PLAN, A VIOLATION OF
ANY SIMILAR FEDERAL, STATE, FOREIGN OR LOCAL LAW). IN ADDITION, IF THE HOLDERS ARE, OR ARE ACTING
ON BEHALF OF, A PLAN, THE FIDUCIARIES OF SUCH PLAN WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED
THAT THEY HAVE BEEN

A-1

 

INFORMED OF AND UNDERSTAND THE BORROWERS’ INVESTMENT OBJECTIVES, POLICIES AND STRATEGIES AND
THAT THE DECISION TO INVEST SUCH PLAN’S ASSETS IN THE 2006-[X] EXCHANGE NOTE WAS MADE WITH
APPROPRIATE CONSIDERATION OF RELEVANT INVESTMENT FACTORS WITH REGARD TO SUCH PLAN AND IS CONSISTENT
WITH THE DUTIES AND RESPONSIBILITIES IMPOSED UPON FIDUCIARIES WITH REGARD TO THEIR INVESTMENT
DECISIONS UNDER ERISA.

          NEITHER THIS 2006-[X] EXCHANGE NOTE NOR ANY INTEREST HEREIN MAY BE TRANSFERRED UNLESS THE
TRANSFEREE OR PURCHASER DELIVERS TO THE ADMINISTRATIVE AGENT AND THE LENDER A DULY EXECUTED
INVESTMENT LETTER IN THE FORM ATTACHED AS EXHIBIT D TO THE CREDIT AND SECURITY AGREEMENT. THE
PURCHASER UNDERSTANDS AND AGREES THAT ANY PURPORTED TRANSFER OF THIS 2006-[X] EXCHANGE NOTE OR ANY
INTEREST HEREIN IN VIOLATION OF THE PRECEDING SENTENCE SHALL BE VOID AND OF NO EFFECT.

          THE PRINCIPAL OF THIS EXCHANGE NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS EXCHANGE NOTE AT ANY TIME MAY BE LESS THAN
THE AMOUNT SHOWN ON THE FACE HEREOF.

A-2

 

REGISTERED $[               ]

No. 1

[     ]% 2006-[X] EXCHANGE NOTE

          CAB EAST LLC, CAB WEST LLC, and FCALM, LLC, as Borrowers (the “Borrowers”), for value
received, hereby promise to pay to FORD MOTOR CREDIT COMPANY, as 2006-[X] Exchange Noteholder (the
“2006-[X] Exchange Noteholder”) for its benefit and the benefit of the other Transferees
from time to time acquiring interests herein pursuant to the 2006-[X] Exchange Note Supplement,
dated as of [         ], 2006 (the “Exchange Note Supplement”) among the
Borrowers, Ford Motor Credit Company, as Lender and Servicer, U.S. Bank National Association, as
Administrative Agent, and HTD Leasing LLC, as Collateral Agent, and other Transferees or registered
assigns, the principal sum of [         ] (U.S. $[         ]) payable
on each Payment Date in an amount equal to the 2006-p[X] Exchange Note Principal Distribution
Amount for such Payment Date pursuant to Section 2.05 of the Exchange Note Supplement;
provided, however, that (i) the entire unpaid principal amount of this Note will be
due and payable on the [         ], [         ] Payment Date (the “2006[X] Exchange Note Final
Scheduled Payment Date”) and (ii) the 2006-[X] Exchange Note may be redeemed earlier than the
Final Scheduled Payment Date pursuant to Section 5.1 of the 2006-[X] Servicing Supplement, dated as
of [         ], 2006, among Ford Motor Credit Company, as Servicer, the Holding Companies, as
Holders of the Collateral Specified Interest Certificates, and HTD Leasing LLC, as Collateral Agent
(the “2006[X] Servicing Supplement”). Capitalized terms used but not defined in this
2006-[X] Exchange Note are defined in Appendix 1 to the Exchange Note Supplement or
Appendix A to the Credit and Security Agreement. Appendix 1 also contains rules as
to usage applicable to this 2006-[X] Exchange Note.

          The payment of interest on, and principal of, this 2006-[X] Exchange Note will constitute the
joint and several obligation of the Borrowers.

          The Borrowers will pay interest on this 2006-[X] Exchange Note is an amount equal to the
2006-[X] Exchange Note Interest Distribution Amount until the principal of this 2006-[X] Exchange
Note is paid or made available for payment. The amount of interest due on this 2006-[X] Exchange
Note on each Payment Date will be calculated on the basis of the 2006-[X] Exchange Note Balance
outstanding on the preceding Payment Date (alter giving effect to all payments of principal made on
the Preceding Payment Date), and will be subject to certain limitations contained in Section 2.04
of the Exchange Note Supplement. Such principal of and interest on this 2006-[X] Exchange Note
will be paid in the manner specified on the reverse hereof.

          The principal of and interest on this 2006-[X] Exchange Note are payable in such coin or
currency of the United States of America as at the time of payment is legal tender for payment of
public and private debts. All payments made by the Borrowers with respect to this 2006-[X]
Exchange Note will be applied to interest on and principal of this 2006-[X] Exchange Note in the
manner set forth in the Exchange Note Supplement.

A-3

 

          Reference is made to the further provisions of this 2006-[X] Exchange Note set forth on the
reverse hereof, which will have the same effect as though fully set forth on the face of this
2006-[X] Exchange Note.

          Unless the certificate of authentication hereon has been executed by the Administrative Agent
whose name appears below by manual or facsimile signature, this 2006-[X] Exchange Note will not be
entitled to any benefit under the Credit and Security Agreement or the Exchange Note Supplement
referred to on the reverse hereof or be valid or obligatory for any purpose.

REMAINDER OF THIS PAGE INTENTIONALLY LEFT BLANK.

A-4

 

          IN WITNESS WHEREOF, each of the Borrowers has caused this instrument to be signed, manually or
in facsimile, by its Authorized Person, as of the date set forth below.

Date: [          ], 2006

	 	 	 	 	 
	 	CAB EAST LLC,

as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	CAB WEST LLC,

as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	FCALM, LLC,

as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 

ADMINISTRATIVE AGENT’S CERTIFICATE OF AUTHENTICATION

          This is the 2006-[X] Exchange Note designated above and referred to in the within-mentioned
Exchange Note Supplement.

Date: [          ], 2006

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIAT70N, not in

its individual capacity but solely as Administrative Agent 	 
	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

A-5

 

REVERSE OF 2006-[X] EXCHANGE NOTE

          This 2006-[X] Exchange Note is one of the duly authorized issue of Exchange Notes, which may
be issued under the Credit and Security Agreement, to which Credit and Security Agreement and all
Exchange Note Supplements that are supplemental thereto reference is made for a statement of the
respective rights and obligations thereunder of the Borrowers, the Lender, the Servicer, the
Administrative Agent, the Collateral Agent and the Exchange Noteholder. The 2006-[X] Exchange Note
is subject to all terms of the Credit and Security Agreement and the Exchange Note Supplement. In
the event of a conflict between the terms of this 2006-[X] Exchange Note, the terms of the Credit
and Security Agreement and the terms of the Exchange Note Supplement, the Exchange Note Supplement
will prevail.

          Interest on and principal of the 2006-[X] Exchange Note will be payable in accordance with the
priority of payments set forth in Section 5.01 of the Exchange Note Supplement.

          Principal of the 2006-[X] Exchange Note will be payable on each Payment Date in an amount
equal to the 2006-[X] Exchange Note Principal Distribution Amount for such Payment Date.
“Payment Day” means the 15th day of each calendar month or, if any such day is not a
Business Day, the next Business Day, commencing in [         ] [         ].

          As described on the face hereof, the entire unpaid principal amount of this 2006-[X] Exchange
Note will be due and payable on the 2006-[X] Exchange Note Final Scheduled Payment Date.
Notwithstanding the foregoing, the entire unpaid principal amount of the Notes will be due and
payable on the date on which an Exchange Note Default with respect to the 2006-[X] Exchange Note
has occurred and is continuing and the 2006-[X] Exchange Noteholder has declared the 2006-[X)
Exchange Note to be immediately due and payable in the manner provided in the Credit and Security
Agreement.

          Payments of interest on this 2006-[X] Exchange Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this 2006-[X] Exchange Note,
will be made to the account of the 2006-[X] Exchange Noteholder either by wire transfer in
immediately available funds, to the account of such 2006-[X] Exchange Noteholder or an account
designated by the 2006-[X] Exchange Noteholder at a bank or other entity having appropriate
facilities therefor if such 2006-[X] Exchange Noteholder has provided to the Exchange Note
Registrar appropriate written instructions at least five (5) Business Days prior to such Payment
Date or, if not, by check mailed first-class mail postage prepaid to the 2006-[X] Exchange
Noteholder’s address as it appears on the Exchange Note Register prior to such Payment Date, except
that the final installment of principal payable on this 2006-[X] Exchange Note on a Payment Date or
the 2006-[X] Exchange Note Final Scheduled Payment Date will be payable only upon the presentation
and surrender of this 2006-[X] Exchange Note in the manner set forth in Section 4.06(b) of
the Credit and Security Agreement. Such payments will be made without requiring that this 2006-[X]
Exchange Note be submitted for notation of payment. Any reduction in the principal amount of this
2006-[X] Exchange Note effected by any payments made on any Payment-Date will be binding upon all
future 2006-[X] Exchange Noteholders of. this 2006-[X] Exchange Note and of any 2006-[X] Exchange
Note issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof,
whether or not noted

A-6

 

hereon. If funds are expected to be available, as provided in the Exchange Note Supplement
and the Credit and Security Agreement, for payment in full of the then remaining unpaid principal
amount of this 2006-[X] Exchange Note on a Payment Date, then the Administrative Agent will notify
the 2006-[X] Exchange Noteholder of the date on which the Borrowers expects that the final
installment of principal of and interest on the 2006-[X] Exchange Note will be paid not later than
5 days prior to such date. Such notice will specify that such final installment will be payable
only upon presentation and surrender of the 2006-[X] Exchange Note and will specify the place where
the 2006-[X] Exchange Note may be presented and surrendered for payment of such installment.

          As provided in the 2006-[X] Servicing Supplement, the 2006-[X] Exchange Note may be purchased
by the Servicer, in whole but not in part, in the manner and to the extent described in Section
5.1 of the 2006-[X] Servicing Supplement.

          The transfer of this 2006-[X] Exchange Note is subject to the restrictions on transfer
specified on the face hereof and to the other limitations set forth in the Credit and Security
Agreement and the Exchange Note Supplement. Subject to the satisfaction of such restrictions and
limitations, the transfer of this 2006-[X] Exchange Note may be registered on the Exchange Note
Register upon surrender of this 2006-[X] Exchange Note for registration of transfer at the office
or agency designated by the Borrowers pursuant to the Credit and Security Agreement, duly endorsed
by, or accompanied by a written instrument of transfer in form satisfactory to the Administrative
Agent duly executed by, the 2006-[X] Exchange Noteholder hereof or the 2006-[X] Exchange
Noteholder’s attorney duly authorized in writing, with such signature guaranteed by an “eligible
guarantor institution” meeting the requirements of the Exchange Note Registrar, and thereupon a new
2006-[X] Exchange Note in the same aggregate principal amount will be issued to the designated
transferee. No service charge will be charged for any registration of transfer or exchange of this
2006-[X] Exchange Note, but the transferor may be required to pay a sum sufficient to cover any tax
or other governmental charge that may be imposed in connection with any such registration of
transfer or exchange.

          The 2006-[X] Exchange Noteholder, by accepting this 2006-[X] Exchange Note acknowledges and
agrees that (i) if an Insolvency Event occurs with respect to any of the Borrowers, any claim that
the 2006-[X] Exchange Noteholder may seek to enforce at any time against any of the Borrowers will
be limited in recourse to the 2006-[X] Reference Pool (except to the extent of Shared Amounts
allocated to the 2006-[X] Exchange Noteholder pursuant to Section 5.01 of the Exchange Note
Supplement) and (ii) if, notwithstanding clause (i), the 2006-[X] Exchange Noteholder is deemed to
have any claim against the assets of the Borrowers other than the assets included in the 2006-[X]
Reference Pool, whether by operation of law, legal process, pursuant to insolvency laws or
otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), such claim will be
subordinate to the payment in full, including post-petition interest, of the claims of the Lender
and to the holders of (A) all other Exchange Notes and (B) in the case of assets allocated to a
Specified Interest other than the Collateral Specified Interest, all other asset-backed securities,
the payments on which are derived primarily from collections on designated assets of the Borrowers
and all related hedging arrangements.

A-7

 

          THE RECITATION SET FORTH IN THE PRECEDING PARAGRAPH WILL BE DEEMED TO CONSTITUTE AN
ENFORCEABLE SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(A) OF THE BANKRUPTCY CODE.

          In addition, the 2006-[X] Exchange Noteholder, by accepting this 2006-[X] Exchange Note,
consents to the Administrative Agent’s delegation under the HTD Administration Agreement to the
Collateral Agent Administrator of certain of the duties that the Administrative Agent is required
to perform on behalf of the Collateral Agent pursuant to the Credit and Security Agreement.

          The 2006-[X] Exchange Noteholder, by accepting the 2006-[X] Exchange Note, covenants and
agrees that for a period of one year and one day after payment in full of all Obligations under the
Credit and Security Agreement, the Exchange Note Supplement, the Exchange Notes, the outstanding
Certificates and the outstanding Securities (as defined in the related Titling Company Agreement),
it will not institute against the Titling Companies or the Holding Companies, or join in any
institution against the Titling Companies or the Holding Companies of, any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
federal or State bankruptcy or similar law in connection with any obligations relating to the
2006-[X] Exchange Note, the Credit and Security Agreement, the Exchange Note Supplement or any of
the other 2006-[X] Basic Documents.

          The Borrowers have entered into the Exchange Note Supplement and this 2006-[X] Exchange Note
is issued with the intention that, for U.S. federal, State and local income, single business and
franchise tax purposes, this 2006-[X] Exchange Note will qualify as indebtedness of the Borrowers.
The 2006-[X] Exchange Noteholder, by its acceptance of this 2006-[X] Exchange Note, will be deemed
to agree to treat this 2006-[X] Exchange Note for U.S. federal, State and local income, single
business and franchise tax purposes as indebtedness of the Borrowers.

          Prior to the. due presentment for registration of transfer of this 2006-[X] Exchange Note, the
Borrowers and the Administrative Agent and any agent of the Borrowers or the Administrative Agent
may treat the Person in whose came this 2006-[X] Exchange Note (as of the day of determination or
as of such other date as may be specified in the Exchange Note Supplement) is registered as the
owner hereof for all purposes, whether or not this 2006-[X] Exchange Note be overdue, and none of
the Borrowers, the Administrative Agent or any such agent will be affected by notice to the
contrary.

          The Credit and Security Agreement permits the amendment thereof (in any manner and for any
purpose) by the Borrowers, the Collateral Agent, the Lender and the Administrative Agent so long as
each Exchange Noteholder of an Outstanding Exchange Note has consented to such amendment. The
Credit and Security Agreement also permits the amendment thereof to amend or waive certain terms
and conditions set forth therein without the consent of the Noteholders; provided certain
conditions are satisfied. Any such consent by the 2006-[X] Exchange Noteholder will be conclusive
and binding upon the 2006-[X] Exchange Noteholder and upon all future holders of this 2006-[X]
Exchange Note and of any 2006-[X] Exchange Note issued upon the registration of transfer hereof or
in exchange hereof or in lieu

A-8

 

hereof whether or not notation of such consent or waiver is made upon this 2006-[X] Exchange
Note.

          The term “Borrower”, as used in this 2006-[X] Exchange Note, includes any successor to any of
the Borrowers under the Credit and Security Agreement.

          The 2006-[X] Exchange Note is issuable only in registered form as provided in the Credit and
Security Agreement and the Exchange Note Supplement, subject to certain limitations therein set
forth.

          This 2006-[X] Exchange Note, the Credit and Security Agreement and the Exchange Note
Supplement will be governed by, and construed in accordance with the laws of the State of Delaware.

          No reference herein to the Credit and Security Agreement or the Exchange Note Supplement, and
no provision of this 2006-[X] Exchange Note or of the Credit and Security Agreement will alter or
impair the obligation of the Borrowers, which is absolute and unconditional, to pay the principal
of and interest on this 2006-[X] Exchange Note at the times, place and rate, and in the coin or
currency herein prescribed.

          Anything herein to the contrary notwithstanding, except as expressly provided in the 2006-[X]
Basic Documents, none of U.S. Bank National Association, in its individual capacity or HTD Leasing
LLC, in its individual capacity, or any of their respective affiliates, partners, beneficiaries,
agents, officers, directors, employees or successors or assigns will be personally liable for, nor
will recourse be had to any of them for, the payment of principal or of interest on this 2006-[X]
Exchange Note or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Credit and Security Agreement or the Exchange Note Supplement.
The 2006-[X] Exchange Noteholder, by its acceptance hereof, agrees that, except as expressly
provided in the 2006-[X] Basic Documents, in the case of an Exchange Note Default under the Credit
and Security Agreement or the Exchange Note Supplement, the 2006-[X] Exchange Noteholder will have
no claim against any of the foregoing for any deficiency, loss or claim therefrom;
provided, however, that nothing contained herein will be taken to prevent recourse
to, and enforcement against, the assets of the Borrowers for any and all liabilities, obligations
and undertakings contained in the Credit and Security Agreement, the Exchange Note Supplement or in
this 2006-[X] Exchange Note.

A-9

 

ASSIGNMENT

          Social Security or taxpayer I.D. or other identifying number of assignee.

 

          FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers without recourse unto

 

(name and address of assignee)

the within 2006-[Xl Exchange Note and all rights thereunder, and hereby irrevocably
constitutes and appoints , attorney, to transfer said 2006-[X] Exchange Note on
the books kept for registration thereof, with full power of substitution in the premises.

Date:

	 	 	 

	 

	 	 
	 

	 	Signature Guaranteed:*

 

			
	*	 	Note: The signature to this assignment must
correspond with the name of the registered owner as it appears on the face of
the within 2006-1 Exchange Note in every particular, without alteration,
enlargement or any change whatsoever.

A-10

 

Exhibit B

FORM OF UCC NOTICE OF SECURITY INTEREST

[Date]

U.S. Bank National Association,

as Administrative Agent

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

               Re: Notice of Security Interest

          Reference is made to the Amended and Restated Credit and Security Agreement, dated as of
December 1, 2006 (the “Credit and Security Agreement”), and the Exchange Note Supplement
dated as of [         ], 2006 (the “2006-[X] Exchange Note Supplement”), each among
CAB East LLC, CAB West LLC, and FCALM, LLC, as Borrowers, Ford Motor Credit Company (“Ford
Credit”), as Lender and as Servicer, U.S. Bank National Association, as Administrative Agent
and HTD Leasing LLC, as Collateral Agent. Pursuant to Section 4.03 of the Credit and
Security Agreement, notice is hereby given that (i) the Exchange Note issued pursuant to the Credit
and Security Agreement and the 2006-[X] Exchange Note Supplement (the “2006-[X] Exchange
Note”) was transferred by Ford Credit as the initial Exchange Noteholder of the 2006-[X]
Exchange Note to the undersigned (the “Transferee”) on [ ], 2006 (the
“Transfer Date”), and (ii) the security interest on the Collateral allocated in the
2006-[X] Reference Pool was assigned by Ford Credit to the Transferee on the Transfer Date.

B-1

 

          Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed
thereto in the Credit and Security Agreement and the 2006-[X] Exchange Note Supplement.

	 	 	 	 	 

	 	 	Very truly yours,
	 
	 	 	 	 
	 	 	[NAME OF TRANSFEREE].
	 
	 	 	 	 
	 

	 	By:	 	 
	 

	 	 	 	 
	 

	 	Name:	 	 
	 

	 	Title:	 	 

B-2

 

Exhibit C

DETERMINATION OF REVOLVING

FACILITY INTEREST RATE

	 	 	 

	Floating Rate:

	 	LIBOR
	 
	 	 
	LIBOR:

	 	With respect to any Interest Period,
the following rate, as determined by
the Lender pursuant to Section 2.05
of the Credit and Security Agreement
to which this Exhibit C is attached:
	 
	 	 
	 

	 	(1) the rate for U.S. dollar
deposits for a period of one month
which appears on the Telerate page
3750 as of 11:00 a.m., London time,
on the LIBOR Determination Date; and
	 
	 	 
	 

	 	(2) if such rate does not appear on
the Telerate Page 3750, the rate
determined on the basis of the rates
at which deposits in U.S. Dollars
are offered by the LIBOR Reference
Banks at approximately 11:00 a.m.,
London time, on the LIBOR
Determination Date to prime banks in
the London interbank market for a
period of one month commencing on
such LIBOR Determination Date and in
a principal amount of at least
U.S.$1,000,000, the Lender will
request the principal London office
of each of the LIBOR Reference Banks
to provide a quotation of its rate.
If at least two such quotations are
provided, the rate will be the
arithmetic mean of the quotations.
If fewer than two quotations are
provided as requested, the rate will
be the arithmetic mean of the rates
quoted by 3 major banks in New York
City, selected by the Lender, at
approximately 11:00 a.m., New York
City time, on that LIBOR
Determination Date for loans in U.S.
Dollars to leading European banks
for a period of one month commencing
on the LIBOR Determination Date and
in a principal amount of at least
U.S.$1,000,000; provided, however,
that if the banks selected as
aforesaid by such Lender are not
quoting rates as mentioned in this
sentence, LIBOR for such Interest
Period will be the same as LIBOR for
the immediately preceding Interest
Period.
	 
	 	 
	LIBOR Determination Date:

	 	The date that is two London Banking
Days prior to the first day of the
applicable Interest Period
	 
	 	 
	LIBOR Reference Banks:

	 	Four major banks in the London
interbank market, as designated by
the Lender.
	 
	 	 
	Telerate Page 3760:

	 	The display designated as page
“3750” on Bridge’s Telerate Service
(or such other page as may replace
that page on that service, or such
other service as may be nominated as
the information vendor, for the
purpose of displaying rates or
prices comparable to LIBOR).

C-1

 

	 	 	 

	London Banking Day:

	 	Any day on which commercial banks
are open for general business
(including dealings in foreign
exchange and foreign currency
deposits) in London.
	 
	 	 
	Spread:

	 	0.50% 

C-2

 

Exhibit D

FORM OF TRANSFEREE REPRESENTATION LETTER

Ford Motor Credit Company,

as Lender

One American Road, Suite 2411

Dearborn, Michigan 48121

U.S. Bank National Association,

as Administrative Agent

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

			
	                    Re:	 	CAB East LLC, CAB West LLC and FCALM, LLC

                    2006[X] Exchange Note

Ladies and Gentlemen:

          In connection with our proposed transfer of the 2006-[X] Exchange Note (the “Exchange
Note”) of CAB East LLC, CAB West LLC and FCALM, LLC (the “Borrowers” issued pursuant to
the Amended and Restated Credit and Security Agreement, dated as of December 1, 2006 (the
“Credit and Security Agreement”), and the Exchange Note Supplement dated as of [
], 2006 (the “2006-[X] Exchange Note Supplement”), each among CAB East LLC, CAB West LLC,
and FCALM, LLC, as Borrowers, Ford Motor Credit Company, as Lender and as Servicer, U.S. Bank
National Association, as Administrative Agent and HTD Leasing LLC, as Collateral Agent, we agree
with and represent to and for the benefit of the Lender and the Administrative Agent, that:

	1.	 	No Transfer of the Exchange Note will be made unless the registration requirements of the
Securities Act of 1933, as amended (“Securities Act”) and any applicable state
securities laws are complied with, or such transfer is exempt from the registration
requirements under the Securities Act, and only to either (i) a “qualified institutional
buyer” as defined in Rule 144A of the Securities Act (a “Qualified Institutional
Buyer”), (ii) an institutional accredited investor as defined in Rule 501(a)(l), (2), (3)
or (7) of Regulation D tinder the Securities Act (an “Institutional Accredited
Investor”)or (iii) the Holding Companies or their respective Affiliates in a transaction
exempt from the registration requirements of the Securities Act and, in each case, such
transfer is in accordance with any applicable State securities laws and the transferee
executes and delivers to the Lender and the Administrative Agent a transferee representation
letter substantially in the form of Exhibit D of the Credit and Security Agreement.
	 
	2.	 	We are, and were at the time that we acquired the Exchange Note held by us, a Qualified
Institutional Buyer or an Institutional Accredited Investor and we are aware that the sale or
transfer of Exchange Note to us is being made in reliance or the exemption from registration
provided by Rule 144A or Section 4(2) of the Securities Act, as applicable.

D-1

 

	3.	 	We are acquiring the Exchange Note for our own account or for one or more accounts, each of
which is either a Qualified Institutional Buyer or an Institutional Accredited Investor, and
as to each of which we exercise sole investment discretion for us and for each such account.
	 
	4.	 	We have such knowledge and experience in financial and business matters as to be capable of
evaluating the merits and risks of its investment in the Exchange Note, and we and any
accounts for which we are acting are each able to bear the economic risk of its investment.
	 
	5.	 	If we are a corporation., partnership, trust or other entity we were not formed or
recapitalized for the specific purpose of acquiring the Exchange Note.
	 
	6.	 	We understand that the Exchange Note are being offered only in a transaction not involving
airy public offering in the United States within the meaning of the Securities Act, the
Exchange Note have not been and will not be registered under the Securities Act, and, if in
the future we decide to offer, resell, pledge or otherwise transfer the Exchange Note, such
securities may be offered, resold, pledged or otherwise transferred only in accordance with
the legend on such Notes set forth herein. We acknowledge that no representation is made by
the Seller as to the availability of any exemption under the Securities Act or any state
securities laws for resale of the Exchange Note;
	 
	7.	 	We understand that an investment in the Exchange Note involves certain risks, including the
risk of loss of a substantial part of our investment order certain circumstances. We have had
access to such financial and other information concerning the Borrowers, the Collateral
Leases, the Collateral Leased Vehicles and the Servicer’s servicing practices and procedures
as we deemed necessary or appropriate in order to make an informed investment decision with
respect to our acquisition of the Exchange Note, including an opportunity to ask questions of
and request information from each of the Borrowers.
	 
	8.	 	Either (A) we are not, and are not acquiring and holding such Exchange Note on behalf of, a
Plan or a governmental or church plan that is subject to Section 406 of ERISA or Section 4975
of the Code or to any federal, State, foreign or local law that is substantially similar to
the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code or
(B) our acquisition and holding of such Exchange Note throughout the period that it holds such
Exchange Note will not result in a non-exempt prohibited transaction under Section 406 of
ERISA or Section 4975 of the Code (or, in the case of a governmental or church plan, a
violation of any similar federal, State, foreign or local law). In addition, if we are, or
are acting on behalf of, a Plan, the fiduciaries of such Plan represent and warrant that they
have been informed of and understand the Issuer’s investment objectives, policies and
strategies and that the decision to invest such Plan’s assets in such Exchange Note was made
with appropriate consideration of relevant investment factors with regard to such Plan and is
consistent with the duties and responsibilities imposed upon fiduciaries with regard to their
investment decisions under ERISA.

D-2

 

	9.	 	None of the Borrowers or the Administrative Agent is under an obligation to register the
Exchange Note under the Securities Act or any State securities laws. Each Note will bear a
legend to the following effect unless determined otherwise by the Servicer (as certified to
the Administrative Agent in an Officer’s Certificate):

“THIS EXCHANGE NOTE HAS NOT BEEN AND WILL NOT BE REGISTERED UNDER THE SECURITIES ACT
OF 1933, AS AMENDED (ITS “SECURITIES ACT”), OR UNDER ANY SECURITIES OR BLUE SKY LAW
OF ANY STATE OF THE UNITED STATES. THE HOLDER HEREOF, BY PURCHASING THIS EXCHANGE
NOTE, AGREES THAT THIS EXCHANGE NOTE MAY BE REOFFERED, RESOLD, PLEDGED OR OTHERWISE
TRANSFERRED ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS,
AND ONLY (1) TO A “QUALIFIED INSTITUTIONAL BUYER” WITHIN THE MEANING THEREOF IN RULE
144A OF THE SECURITIES ACT, (2) TO AN INST1TUTIONAL “ACCREDITED INVESTOR” WITHIN THE
MEANING THEREOF IN RULE 501(a)(1), (2), (3) OR (7) OF REGULATION D UNDER THE
SECURITIES ACT, OR (3) TO THE HOLDING COMPANIES OR THEIR RESPECTIVE AFFILIATES, IN
EACH CASE IN ACCORDANCE WITH ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND
SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES, AND SUBJECT TO THE
RECEIPT BY THE ADMINISTRATIVE AGENT OF SUCH OTHER EVIDENCE ACCEPTABLE TO THE
ADMINISTRATIVE AGENT THAT SUCH REOFFER, RESALE, PLEDGE OR TRANSFER 1S IN COMPLIANCE
WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS.”

	10.	 	As a condition to the registration of any sale, transfer, assignment, participation, pledge
or other disposition (each, a “Transfer”) of an Exchange Note, the prospective transferee of
such Exchange Note will be required to represent to the Administrative Agent and the Borrowers
the following, unless determined otherwise by the Servicer (as certified to the Administrative
Agent in an Officer’s Certificate):

	 	(a)	 	It understands that no subsequent Transfer of the Exchange Note is permitted
unless it causes its proposed transferee to provide to the Administrative Agent and the
Lender a letter substantially in the form of Exhibit D (with such changes therein as
may be approved by the Servicer), or such other statement as the Borrower may require,
	 
	 	(b)	 	It understands that any purported Transfer of an Exchange Note (or any interest
therein) in contravention of any of the restrictions and conditions contained in this
Section 4.02 will be null and void, and the purported transferee in any such purported
Transfer will not be recognized by the Borrowers or any other Person as an Exchange
Noteholder for any purpose.

	11.	 	We acknowledge, submit to and agree to be bound by the Intercreditor Agreement, and each
acknowledge receipt of a copy of such agreement as in effect on the Closing Date.

D-3

 

	 	 	We acknowledge that, among other things, the Intercreditor Agreement limits any interest of
the Exchange Noteholder and any transferee to the Borrowers to the assets allocated to the
related Reference Pool in the Collateral Specified Interests of the Borrowers.

	12.	 	Any Transfer of the Exchange Note to a Person that is neither a Qualified Institutional Buyer
nor an Institutional Accredited Investor, or otherwise that is not made in accordance with the
restrictions set forth in the Credit and Security Agreement will be null and void from the
beginning and will not be given effect for any purpose under this letter or the Credit and
Security Agreement.

     Capitalized terms used and not otherwise defined herein have the meanings assigned to such
terms in Appendix A to the Credit and Security Agreement, which also contains rules as to usage
applicable to this letter.

     You are entitled to rely upon this letter and are irrevocably authorized to produce this
letter or a copy hereof to any interested party in any administrative or legal proceeding or
official inquiry with respect to the matters covered hereby.

D-4

 

	 	 	 	 	 
	 	Very truly yours,

[NAME OF TRANSFEREE]

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

D-5

 

Exhibit E

FORM OF POWER OF ATTORNEY

	 	 	 	 	 	 	 
	STATE OF ILLINOIS

	 	 	)	 	 	 
	 

	 	 	)	 	 	 
	COUNTY OF COOK

	 	 	)	 	 	 

          HTD LEASING LLC, a Delaware limited liability company, having an office and place of business
at 209 South LaSalle Street, Suite 300, Chicago, Illinois 60604 (“HTD”), appoints:

     1. Ford Motor Credit Company, a Delaware corporation, having an office and place of business
at One American Road, Dearborn, Michigan 48126 (“Ford Credit”), its employees, contractors,
attorneys and agents, to act as HTD’s true and lawful attorneys-in-fact to Execute all Documents
that may be required to (A) reflect the lien of HTD on any Certificate of Title or (B) remove HTD
as lienholder from any Certificate of Title upon termination of HTD’s lien on the related motor
vehicle; and

     2. Ford Credit and its attorneys to act as HTD’s true and lawful attorneys-in-fact to (A)
execute a power of attorney on behalf of HTD in favor of any Dealer or Auction and any employee or
agent thereof appointing any such person or entity as HTD’s attorney-in-fact to Execute all
Documents that may be required to (i) reflect the lien of HTD on any Certificate of Title or (ii)
remove HTD as lienholder from any Certificate of Title upon termination of HTD’s lien in the
related motor vehicle and (B) otherwise convey the authority to Dealers or Auction and their
employees or agents to take such actions on behalf of HTD.

     As used herein, (i) “Auction” means Manheim Auctions, Inc, Auto Trade Center and any
other physical or electronic auction house, motor vehicle disposition agent, consignor or vendor,
(ii) “Dealer” means any motor vehicle dealer, (iii) “Execute” means to prepare,
execute, submit, deliver and/or file, in each case on behalf of HTD, (iv) “Document” means
any document, instrument, certificate or application and (v) “Certificate of Title” means
any certificate of title for a motor vehicle acquired or to be acquired by any affiliate of Ford
Credit.

          This power of attorney will remain in full force and effect until notice of revocation in
writing is delivered by HTD to Ford Credit.

          EXECUTED this ____ day of December 2006.

	 	 	 	 	 
	 	HTD LEASING LLC

 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

E-1

 

	 	 	 	 	 	 	 	 	 

	STATE OF ILLINOIS
	 	 	)	 	 	 	 	 
	 
	 	 	)	 	 	 	 	 
	COUNTY OF COOK
	 	 	)	 	 	 	 	 

          Before me, the undersigned authority, on this day personally appeared _________________, known
to me to be the person whose name is subscribed to the foregoing instruments, and acknowledged to
me that he/she signed the same for the purposes and considerations therein expressed.

Sworn to before me this ____

day of December, 2006.

Notary Public — State of Illinois

E-2

 

Exhibit F

FORM OF CERTIFICATE OF SECURITY AGREEMENT

Certificate of

Security Agreement

To all persons be it hereby known that <Enter Title Holder’s Name> as owner of the vehicle
specifically identified in the attached lease agreement has granted to HTD Leasing LLC a security
interest in such vehicle. It is the intention of the parties that such security interest be
reflected on the title to the lease vehicle and other appropriate official records.

These facts are hereby attested to by the duly authorized and appointed representatives of
<Enter Title Holder’s Name> and HTD Leasing LLC.

	 	 	 	 	 	 	 	 	 

	OWNER	 	LIEN HOLDER
	 	 	 
	 
	 	 	 	 	 	 	 	 
	<Enter Title Holder’s Name>	 	HTD Leasing LLC
	 
	 	 	 	 	 	 	 	 
	By	 	<Representative’s Signature>	 	By	 	<Representative’s Signature>
	 	 	 	 	 	 	 
	Name

	 	<Representative’s Name>
	 	 	 	Name
	 	<Representative’s Name>
	 

	 	 
	 	 	 	 	 	 
	Title

	 	<Title>
	 	 	 	Title
	 	<Title>
	 

	 	 
	 	 	 	 	 	 

F-1

 

APPENDIX A

AMENDED AND RESTATED USAGE AND DEFINITIONS

Usage

     The following rules of construction and usage are applicable to this Appendix and to any
agreement that incorporates this Appendix and any certificate or other document made or delivered
pursuant to any such agreement:

          (a) All terms defined in this Appendix, unless otherwise defined in any agreement that
incorporates this Appendix or any certificate or other document made or delivered pursuant to any
such agreement, have the meanings assigned in this Appendix.

          (b) Accounting terms not defined in this Appendix or in any such agreement, certificate or
other document, and accounting terms partly defined in this Appendix or in any such agreement,
certificate or other document, to the extent not defined, have the respective meanings given to
them under U.S. generally accepted accounting principles as in effect on the date of such
agreement, certificate or other document. To the extent that the definitions of accounting terms
in this Appendix or in any such agreement, certificate or other document are inconsistent with the
meanings of such terms under U.S. generally accepted accounting principles, the definitions
contained in this Appendix or in any such agreement, certificate or other document will control.

          (c) References in an agreement to “Article,” “Section,” “Exhibit,” “Schedule” or another
subdivision or to an attachment are, unless otherwise specified, to an article, section, exhibit,
schedule or other subdivision of or an attachment to such agreement; and the term “including” means
“including without limitation.”

          (d) The definitions contained in this Appendix are equally applicable to both the singular and
plural forms of such terms and to the masculine as well as to the feminine and neuter genders of
such terms.

          (e) Any agreement or statute defined or referred to in this Appendix or in any agreement that
incorporates this Appendix means such agreement or statute as from time to time amended, modified,
supplemented or replaced, including (in the case of agreements) by waiver or consent and (in the
case of statutes) by succession of comparable successor statutes and includes (in the case of
agreements) references to all attachments thereto and instruments incorporated therein and (in the
case of statutes) any rules and regulations promulgated thereunder and any judicial and
administrative interpretations thereof.

          (f) References to a Person are also to its permitted successors and assigns.

          (g) References to deposits, transfers and payments of any amounts refer to deposits, transfers
or payments of such amounts in immediately available funds.

 

 

          (h) Except where “not less than zero” or similar language is indicated, amounts determined by
reference to a mathematical formula may be positive or negative.

Definitions

     “Addition Date” with respect to any Titling Company, has the meaning specified in the
related Titling Company Agreement.

     “Adjusted Capitalized Cost” means, with respect to any Lease, the amount used to
calculate the Base Payment for such Lease.

     “Administrative Agent” means U.S. Bank, not in its individual capacity but solely as
Administrative Agent under the Credit and Security Agreement.

     “Advance” has the meaning specified in Section 2.01(a) of the Credit and
Security Agreement.

     “Advance Rate” means 90%, as such percentage may be amended from time to time pursuant
to Section 2.03(b) of the Credit and Security Agreement.

     “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with such Person. For the
purposes of this definition, “control” when used with respect to any Person means 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.

     “ALG Residual Value” means, with respect to any Lease, the expected value of the
related Leased Vehicle at the related Scheduled Lease End Date, calculated using the residual
factors supplied by Automotive Lease Guide in effect as of the related Lease Date.

     “Allocation and Reconciliation Agreement” means any agreement among the Holding
Companies and/or any other Person established for similar purposes with the purpose of allocating
proceeds of, and residual cash flows with respect to Certificates.

     “Applicable Law” means all applicable laws, ordinances, judgments, decrees,
injunctions, writs and orders of any Governmental Authority and rules, regulations, orders,
interpretations, licenses and permits of any Governmental Authority.

     “Assignment Date” with respect to any Titling Company has the meaning specified in the
related Titling Company Agreement.

     “Assignment Notice” with respect to any Titling Company has the meaning specified in
the related Titling Company Agreement.

     “Authorized Person” means:

	 	(i)	 	with respect to the Titling Company Registrar, means any
officer in the Corporate Trust Office of such Person, including any vice
president, assistant vice president, assistant treasurer, assistant secretary
or any other

 

 

	 	 	 	officer of such Person customarily performing functions similar to those
performed by any of the above designated having responsibility for the
administration of the Basic Documents and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject;
	 
	 	(ii)	 	with respect to any Titling Company, has the meaning specified
in the related Titling Company Agreement;
	 
	 	(iii)	 	with respect to the Servicer, the individuals designated from
time to time by the Servicer pursuant to Section 9.6(d) of the
Servicing Agreement;
	 
	 	(iv)	 	with respect to the Titling Company Administrator relating to
any Titling Company, the individuals designated by such Titling Company
Administrator from time to time pursuant to Section 7.12 of the related
Titling Company Agreement;
	 
	 	(v)	 	with respect to the Collateral Agent Administrator, the
individuals designated by the Collateral Agent Administrator from time to time
pursuant to Section 2.5 of the HTD Administration Agreement; and
	 
	 	(vi)	 	with respect to the Administrative Agent means any officer
within the Corporate Trust Office of such Person, including any vice president,
assistant vice president, assistant treasurer, assistant secretary or any other
officer of such Person, customarily performing functions similar to those
performed by any of the above designated having responsibility for the
administration of the Basic Documents and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

     “Bankruptcy Code” means the United States Bankruptcy Code, as set forth in Title 11 of
the United States Code.

     “Base Payment” means, with respect to any Lease, a level amount payable monthly in
advance by the related Lessee that provides a fixed internal rate of return, and amortizes the
Adjusted Capitalized Cost of such Lease to the Contract Residual Value of the related Leased
Vehicle over the original term of the Lease.

     “Basic Documents” means:

	 	(a)	 	the Credit and Security Agreement;
	 
	 	(b)	 	the Servicing Agreement;
	 
	 	(c)	 	the HTD Administration Agreement;

 

 

	 	(d)	 	the Titling Company Agreements;
	 
	 	(e)	 	the Holding Company LLC Agreements;
	 
	 	(f)	 	the HTD LLC Agreement; and
	 
	 	(g)	 	the License Agreement.

     “Borrowers” means CAB East, CAB West and FCALM, as Borrowers under the Credit and
Security Agreement.

     “Borrowing Base” means, as of any date, the product of (i) the Advance Rate and (ii)
(I) the excess of (1) the aggregate Lease Balance of all the Collateral Leases (including any
Collateral Lease to be acquired with the proceeds of such Advance and the Collateral Leases
allocated to any Reference Pools on such day), over (2) the aggregate principal balance of all
Exchange Notes on such day (after giving effect to any payment of principal on the Exchange Notes
on such day).

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions or trust companies in New York, New York, St. Paul, Minnesota or Chicago, Illinois are
authorized or obligated by law, regulation or executive order to close or a day on which the
Corporate Trust Office of any indenture trustee involved with respect to a debt obligation secured
by an Exchange Note is closed for business.

     “CAB East” means CAB East LLC, a Delaware limited liability company.

     “CAB East Agreement” means the Amended and Restated Limited Liability Company
Agreement, dated as of November 1, 2004, among CAB East Holdings, as member, U.S. Bank, as Titling
Company Registrar, and Ford Credit, as Titling Company Administrator.

     “CAB East Holdings” means CAB East Holdings, LLC, a Delaware limited liability
company.

     “CAB West” means CAB West LLC, a Delaware limited liability company.

     “CAB West Agreement” means the Amended and Restated Limited Liability Company
Agreement, dated as of November 1, 2004, among CAB West Holdings, as member, U.S. Bank, as Titling
Company Registrar, and Ford Credit, as Titling Company Administrator.

     “CAB West Holdings” means CAB West Holdings, LLC, a Delaware limited liability
company.

     “Certificate” with respect to any Titling Company, has the meaning specified in the
related Titling Company Agreement.

     “Certificate of Title” means a certificate of title of a Leased Vehicle issued in
paper form by the relevant governmental department or agency in the jurisdiction in which the
Leased Vehicle is registered, or a record maintained by such governmental department or agency in
the

 

 

form of information stored in electronic media. However, if a certificate of title in paper
form or such record stored on electronic media has not been issued or is not being maintained, the
application (or copy thereof) for the certificate of title will constitute the “Certificate of
Title.”

     “Class” with respect to any Titling Company, has the meaning specified in the related
Titling Company Agreement.

     “Closing Date” means July 22, 2005.

     “Code” means the Internal Revenue Code of 1986.

     “Collateral” means (a) all Collateral Leases, (b) all Collateral Leased Vehicles, (c)
all Collections on the Collateral Leases and the Collateral Leased Vehicles, (d) all Insurance
Policies, (e) all amounts received on any Collateral Lease in respect of Dealer Recourse Rights,
(f) all Collection Accounts and (g) all present and future claims, demands, causes of action and
chooses in action in respect of the foregoing and all payments on or under and all proceeds in
respect of the foregoing.

     “Collateral Agent” means HTD, as Collateral Agent pursuant to the Credit and Security
Agreement.

     “Collateral Agent Administrator” means Ford Credit, as Collateral Agent Administrator
under the HTD Administration Agreement.

     “Collateral Assets” means the Collateral Leases and the Collateral Leased Vehicles
allocated to the Collateral Specified Interests.

     “Collateral Lease” means any Lease as to which the Lease Date is on or after August 1,
2005 or, with respect to any Lease relating to a Leased Vehicle that is registered in the State of
New Jersey, as to which the Lease Date is on or after September 1, 2005.

     “Collateral Lease Files” means, with respect to each Collateral Lease, Collateral
Leased Vehicle and Lessee, the following documents (which may be photocopies or in electronic
format unless otherwise indicated):

	 	(i)	 	the original of the Collateral Lease (or an electronic copy of
such Collateral Lease that satisfies section 9-105 of the UCC) that is clearly
marked to show the applicable Titling Company as the owner of such Collateral
Lease;
	 
	 	(ii)	 	the original credit application fully executed by the Lessee;
	 
	 	(iii)	 	the Certificate of Title and all related documents retained on
file by the Servicer evidencing the ownership of the related Collateral Leased
Vehicle; and
	 
	 	(iv)	 	any and all other documents that the Servicer retains on file
relating to the Collateral Lease, or the related Collateral Leased Vehicle or
Lessee.

 

 

     “Collateral Leased Vehicle” means any Leased Vehicle that is the subject of a
Collateral Lease.

     “Collateral Specified Interest” means each Specified Interest designated as a
“Collateral Specified Interest” pursuant to a Collateral Titling Company Specification Notice.

     “Collateral Specified Interest Certificate” means each Certificate (as defined in the
applicable Titling Company Agreement) issued by a Titling Company and representing the entire
Titling Company Interest in the related Collateral Assets.

     “Collateral Titling Company Specification Notice” means a Specification Notice in
substantially the form attached as Exhibit D to the Servicing Agreement.

     “Collection Account” means the account designated as such with respect to the
Revolving Facility Pool or any Reference Pool, as the context may require, pursuant to Section
5.2(a) of the Servicing Agreement.

     “Collection Period” with respect to the Revolving Facility Pool or, except as
otherwise provided in the related Exchange Note Supplement, any Exchange Note, a calendar month
(and, with respect to any Payment Date, means the calendar month preceding such Payment Date).

     “Collections” means, with respect to the Revolving Facility Pool and, except as
otherwise provided in the related Exchange Note Supplement or Servicing Supplement, any Reference
Pool, all amounts Posted in respect of the Collateral Leases and Collateral Leased Vehicles
included in the Revolving Facility Pool or such Reference Pool, as the case may be, including all
amounts Posted from the Lessees on such Collateral Leases and all amounts received with respect to
the sale or other disposition of the related Collateral Leased Vehicles.

     “Commission” means the Securities and Exchange Commission.

     “Contract Rate” means, with respect to any Lease, the internal rate of return used to
calculate the Base Payment.

     “Contract Residual Value” means, with respect to any Lease, the dollar amount stated
in the Lease as the value of the related Leased Vehicle at the Scheduled Lease End Date.

     “Corporate Trust Office” means, with respect to the Administrative Agent and any
Titling Company Registrar, the office of such Administrative Agent or Titling Company Registrar at
which its corporate trust business is administered, which on the Closing Date is located, in the
case of each such Administrative Agent or Titling Company Registrar, at:

U.S. Bank National Association

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

Fax: (312) 325-8905

Telephone: (312) 325-8904

 

 

or at such other address as the party may designate by notice to the Borrowers, the Servicer and
each Exchange Noteholder.

     “Covered Parties” has the meaning specified in Section 3.7(a) of the Servicing
Agreement.

     “Credit and Collection Policy” means the credit and collection standards, policies,
procedures and practices of the Servicer from time to time relating to motor vehicle leases and the
related vehicles serviced by the Servicer.

     “Credit and Security Agreement” means the Amended and Restated Credit and Security
Agreement, dated as of December 1, 2006, among the Titling Companies, as Borrowers, U.S. Bank, as
Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and as Servicer, as
supplemented by all Exchange Note Supplements.

     “Cutoff Date” means, with respect to each Exchange Note and the related Reference
Pool, the date specified in the related Exchange Note Supplement (before any processing on such
day).

     “Dealer” means the dealer who originated and assigned any Lease to a Titling Company
under an existing agreement between such dealer and Ford Credit.

     “Dealer Proceeds” means the amount payable to the Dealer in connection with the
purchase” of a Lease and related Leased Vehicle minus any deductions from such amount, in
each case determined in accordance with the Credit and Collection Policy.

     “Dealer Purchase Option” means, with respect to any Lease that has been terminated,
the option, if any, of the related Dealer to purchase the related Leased Vehicle for a purchase
price equal to the Contract Residual Value.

     “Dealer Recourse Rights” means, with respect to any Lease or Leased Vehicle, all
recourse rights against the originating Dealer.

     “Delaware LLC Act” means the Delaware Limited Liability Company Act (currently Chapter
18 of Title 6, Sections 18-101 through 18-1109 of the Delaware Code).

     “Early Termination Event” has the meaning specified in Section 6.02 of the
Credit and Security Agreement.

     “Eligible State” means, with respect to any Titling Company, any State in which such
Titling Company is qualified, authorized and licensed to hold title or other evidence of an
interest in a Leased Vehicle.

     “ERISA” means the Employee Retirement Income Security Act of 1974.

     “Excess Mileage” means, for any Leased Vehicle, the amount assessed pursuant to the
related Lease for the excess of the number of miles that such Leased Vehicle has been driven over
the number of miles such Leased Vehicle may be driven during the term of such Lease without
incurring an excess mileage charge.

 

 

     “Excess Wear and Use” means, for any Leased Vehicle, the amount assessed pursuant to
the related Lease for damages to such Leased Vehicle that are not the result of normal wear and
use, whether or not such amount has been waived or excluded.

     “Exchange Note Allocation Percentage” means, with respect to any Exchange Note and any
date of determination, a fraction, expressed as a percentage, (i) the numerator of which is equal
to the Exchange Note Balance of such Exchange Note and (ii) the denominator of which is equal to
the sum of (x) the Revolving Facility Balance and (y) the aggregate of the Exchange Note Balances
of all of the Exchange Notes.

     “Exchange Note Balance” means, with respect to any Exchange Note, the initial
principal balance of such Exchange Note, as reduced by all amounts distributed on such Exchange
Note and allocable to principal.

     “Exchange Note Default” has the meaning specified in Section 6.04(a) of the
Credit and Security Agreement.

     “Exchange Note Interest Payment Amount” means, with respect to any Exchange Note and
any Payment Date, except as otherwise specified in the related Exchange Note Supplement, the sum
of:

	 	(i)	 	the portion of the Exchange Note Interest Payment Amount with
respect to such Exchange Note and the immediately preceding Payment Date that
was not paid on such date; plus
	 
	 	(ii)	 	the product of (A) the Exchange Note Balance as of the first
day of such Interest Period, times (B) the applicable Exchange Note
Interest Rate, times (C) the day count fraction specified in the
related Exchange Note Supplement.

     “Exchange Note Interest Rate” means, with respect to any Exchange Note and any
Interest Period, the fixed rate or floating rate specified in the related Exchange Note Supplement.

     “Exchange Note Issuance Date” has the meaning specified in Section 4.02(d)(i)
of the Credit and Security Agreement.

     “Exchange Note Principal Payment Amount” means the amount owed with respect to a
principal payment for an Exchange Note on each applicable Payment Date.

     “Exchange Note Purchase Price” means, the amount payable with respect to an Exchange
Note in connection with the redemption of such Exchange Note as set forth in the applicable
Servicing Supplement.

     “Exchange Note Redemption Date” means, with respect to the redemption of any Exchange
Note, the date on which such redemption is to occur pursuant to the terms of the applicable
Servicing Supplement.

 

 

     “Exchange Note Register” and “Exchange Note Registrar” have the respective
meanings specified in Section 4.04(a) of the Credit and Security Agreement.

     “Exchange Note Servicer Event of Default” has the meaning specified in Section
8.3 of the Servicing Agreement.

     “Exchange Note Supplement” has the meaning specified in Section 4.01(a) of the
Credit and Security Agreement.

     “Exchange Noteholder” means, with respect to any Exchange Note, Ford Credit or any
indorsee of such Exchange Note, as determined under Section 4.03 of the Credit and Security
Agreement. For so long as any debt obligations are secured by an Exchange Note, the indenture
trustee acting on behalf of the holders of such debt obligations will be deemed to be the Exchange
Noteholder and after such debt obligations have been reduced to zero, the owner trustee will be
deemed to be the Exchange Noteholder.

     “Exchange Notes” has the meaning specified in Section 4.01(a) of the Credit
and Security Agreement.

     “Facility Amount” means $40,000,000,000, as such amount may be increased or decreased
from time to time pursuant to Section 2.01(g) of the Credit and Security Agreement.

     “Facility Default” has the meaning specified in Section 6.01 of the Credit and
Security Agreement.

     “Facility Servicer Event of Default” has the meaning specified in Section
8.1(a) of the Servicing Agreement.

     “Facility Termination Date” means the 20th anniversary of the Closing Date,
as such date may be extended in accordance with Section 2.01(f) of the Credit and Security
Agreement or such earlier date on which the Revolving Facility is terminated pursuant to agreement
between the Borrowers and the Lender or pursuant to Article VI of the Credit and Security
Agreement.

     “FCALM” means FCALM, LLC, a Delaware limited liability company.

     “FCALM Agreement” means the Amended and Restated Limited Liability Company Agreement,
dated as of November 1, 2004, among FCALM Holdings, as Member, U.S. Bank, as Titling Company
Registrar, and Ford Credit, as Titling Company Administrator.

     “FCALM Holdings” means FCALM Holdings, LLC, a Delaware limited liability company.

     “Final Scheduled Payment Date” means, with respect to any Exchange Note, the date
specified in such Exchange Note or in the related Exchange Note Supplement as the fixed date that
the final payment of principal on such Exchange Note is due and payable.

 

 

     “Financing Agreements” means the Credit and Security Agreement and any other similar
agreement entered into by and among HTD, as collateral agent, U.S. Bank, as administrative agent,
and any other titling company that is an Affiliate of Ford Credit.

     “Fitch” means Fitch, Inc., doing business as Fitch Ratings.

     “Ford Credit” means Ford Motor Credit Company, a Delaware corporation.

     “Governmental Authority” means the United States of America, any State or other
political subdivision thereof and any entity exercising executive, legislative, judicial,
regulatory or administrative functions of or pertaining to government.

     “Holder” means, with respect to any Titling Company, each holder of a Certificate
issued by such Titling Company.

     “Holding Companies” means CAB East Holdings, CAB West Holdings and FCALM Holdings.

     “Holding Company LLC Agreements” means the Amended and Restated Limited Liability
Company Agreement of each Holding Company dated as of November 1, 2004, between Ford Credit and
such Holding Company.

     “HTD” means HTD Leasing LLC, a Delaware limited liability company.

     “HTD Administration Agreement” means the Amended and Restated Administration Agreement
dated as of December 1, 2006, between the Administrative Agent and the Collateral Agent
Administrator.

     “HTD LLC Agreement” means the Amended and Restated Limited Liability Company Agreement
of HTD Leasing LLC, dated as of December 1, 2006, by U.S. Bank, as Member.

     “Indemnified Person” as used in (i) the Credit and Security Agreement, has the meaning
specified in Section 8.01 of the Credit and Security Agreement, (ii) the Servicing
Agreement, has the meaning specified in Section 3.3(b), (c) or (d), as
applicable, of the Servicing Agreement and (iii) the HTD Administration Agreement, has the meaning
specified in Section 3.2(a) or (b), as applicable, of the HTD Administration
Agreement.

     “Independent” means, with respect to any Person, that such Person (i) is independent
of the Borrowers and their Affiliates, (ii) does not have any direct financial interest or any
material indirect financial interest in the Borrowers or any of their Affiliates and (iii) is not
an officer, employee, promoter, underwriter, trustee, partner, director or person performing
similar functions of or for the Borrowers.

     “Information Recipients” has the meaning specified in Section 11.13(a) of the
Credit and Security Agreement.

     “Insolvency Event” means, for a Person, (a) the making of a general assignment for the
benefit of creditors, (b) the filing of a voluntary petition in bankruptcy, (c) being adjudged

 

 

bankrupt or insolvent, or having had an order entered against such Person for relief in any
bankruptcy or insolvency proceeding, (d) the filing by such Person of a petition or answer seeking
reorganization, liquidation, dissolution or similar relief under any statute, law or regulation,
(e) seeking, consenting to or acquiescing in the appointment of a trustee, liquidator, receiver or
similar official of such Person or of all or any substantial part of such Person’s assets, (f) the
failure to obtain dismissal or a stay within 60 days of the commencement of or the filing by such
Person of an answer or other pleading admitting or failing to contest the material allegations of a
petition filed against such Person in any proceeding against such Person seeking (i)
reorganization, liquidation, dissolution or similar relief under any statute, law or regulation or
(ii) the appointment of a trustee, liquidator, receiver or similar official of such Person or of
all or any substantial part of such Person’s assets, or (g) the failure by such Person generally to
pay its debts as such debts become due.

     “Insurance Policies” means any residual value, comprehensive, collision, liability,
physical damage, credit or other insurance policy, insurance policy covering all or a portion of
the Excess Wear and Use amounts that are waived pursuant to an exclusion from or waiver of Excess
Wear and Use charges purchased by the related Lessee at the inception of such Lease and any
contingent or excess liability insurance policy or program, and all rights thereunder, that are
maintained by the Servicer, an Affiliate of the Servicer or a Lessee, in each case to the extent
that such policy or program covers or applies to (i) any Collateral Lease or Collateral Leased
Vehicle or (ii) the ability of any Lessee to make any required payment under any such Collateral
Lease or with respect to the related Collateral Leased Vehicle.

     “Intercreditor Agreement” means the Intercreditor Agreement, dated as of November 1,
2004, among (i) Ford Credit, as Titling Company Administrator and an Interest Holder, (ii) CAB
East, CAB West, FCALM, Ford Credit Titling Trust and each other Person becoming party to such
agreement as a “Titling Company,” as Titling Companies, (iii) each of the Holding Companies and
Ford Credit Auto Lease LLC, as initial Multiple-Use SPVs and Interest Holders, (iv) U.S. Bank, as
Titling Company Trustee/Registrar, (v) Ford Credit Auto Lease Trust 2004-A, as an Interest Holder,
(vi) JPMorgan Chase Bank, N.A., as indenture trustee and (vi) certain other Persons becoming party
thereto pursuant to a Joinder Agreement.

     “Interest Period” means, with respect to the Revolving Facility and, except as
otherwise provided in the related Exchange Note Supplement, any Exchange Note:

	 	(i)	 	in the case of the first Payment Date, the period from and
including the Closing Date to and including the last day of the calendar month
in which the Closing Date occurs; and
	 
	 	(ii)	 	in the case of all other Payment Dates, the calendar month
immediately preceding the calendar month during which such Payment Date occurs.

     “Investment Company Act” means the Investment Company Act of 1940.

     “IRS” means the Internal Revenue Service.

     “Joinder Agreement” means each joinder agreement substantially in the form of
Exhibit A to the Intercreditor Agreement.

 

 

     “Lease” means any lease agreement for a motor vehicle entered into between a Lessee
and a Dealer and assigned by such Dealer to a Titling Company.

     “Lease Balance” means, with respect to any Lease and any Collection Period, the sum of
the present values of:

	 	(i)	 	the scheduled Base Payments (determined as of the Cutoff Date)
remaining after the end of the Collection Period (or, for an Advance Payment
Plan Lease, zero); and
	 
	 	(ii)	 	the Contract Residual Value of the related Leased Vehicle,

in each case, computed using a discount rate equal to the Contract Rate on the basis of a 360-day
year of twelve 30-day months to the beginning of such Collection Period and assuming each amount is
received at the end of the Collection Period in which the amount is scheduled to be received.

     “Lease Date” means, with respect to any Lease, the date set forth as the “Lease Date”
or date of inception in the Lease.

     “Leased Vehicle” means any motor vehicle, together with all attached items or
accessories, that is subject to a Lease.

     “Lender” means Ford Credit, in its capacity as Lender under the Credit and Security
Agreement.

     “Lessee” means the lessee of a Leased Vehicle or any Person who is obligated to make
payments on the related Lease (other than any Dealer in respect of any recourse rights against the
Dealer).

     “Lessee Purchase Option” means, with respect to any Lease, the Lessee’s option under
the Lease to purchase the related Leased Vehicle.

     “License Agreement” means the License Agreement dated as of July 22, 2005, among Ford
Credit, as licensor, HTD Leasing LLC, as Collateral Agent and licensee, and U.S. Bank as
Administrative Agent.

     “Lien” means a security interest, lien, charge, pledge, equity, or encumbrance of any
kind.

     “Monthly Exchange Note Report” has the meaning specified in Section 9.2 of the
Servicing Agreement.

     “Monthly Revolving Facility Pool Report” has the meaning specified in Section
9.1 of the Servicing Agreement.

     “Moody’s” means Moody’s Investors Service, Inc.

 

 

     “New York UCC” has the meaning specified in Section 5.2(b) of the Servicing
Agreement.

     “Officer’s Certificate” means, subject to the terms of any applicable Exchange Note
Supplement, with respect to the Servicer, a certificate signed by the chairman of the board, the
president, any executive vice president, any vice president, the treasurer, any assistant
treasurer, the secretary, any assistant secretary or the controller of the Servicer; and with
respect to any Borrower or Borrowers, a certificate signed by any Authorized Person of such
Borrower or Borrowers.

     “Opinion of Counsel” means a written opinion of counsel who may, except as otherwise
provided in the Credit and Security Agreement, be employees of or counsel to a Borrower or an
Affiliate of a Borrower and, in the case of an opinion of counsel to be delivered to the
Administrative Agent (i) is delivered by counsel reasonably acceptable to the Administrative Agent
and (ii) is addressed to the Administrative Agent.

     “Other Assets” has the meaning specified in Section 10.07(b)(ii) of the Credit
and Security Agreement.

     “Other Liabilities” has the meaning specified in Section 10.07(c) of the
Credit and Security Agreement.

     “Outstanding” means, with respect to the Exchange Notes, as of any date, all Exchange
Notes authenticated and delivered under any Exchange Note Supplement on or before such date
except:

          (i) Exchange Notes that have been cancelled by the Borrower or delivered to the Administrative
Agent for cancellation;

          (ii) Exchange Notes or portions of Exchange Notes to the extent an amount necessary to pay all
or such portion of such Exchange Notes has been deposited with the Administrative Agent in trust
for the Exchange Noteholders of such Exchange Notes on or before such date, provided that if such
Exchange Notes are to be redeemed, notice of such redemption has been duly given pursuant to any
Exchange Note Supplement or provision for such notice has been made, satisfactory to the
Administrative Agent; and

          (iii) Exchange Notes in exchange for or in lieu of which other Exchange Notes have been
authenticated and delivered pursuant to an Exchange Note Supplement unless proof satisfactory to
the Administrative Agent is presented that a bona fide purchaser holds any such Exchange Notes;

provided that in determining (A) whether the Exchange Noteholders of Exchange Notes evidencing the
requisite Exchange Note Balance have given any request, demand, authorization, direction, notice,
consent, or waiver under any Basic Document, Exchange Notes owned by the Borrowers, the Servicer
and any of their Affiliates will be disregarded and deemed not to be Outstanding and (B) whether
the Administrative Agent is protected in relying on any such request, demand, authorization,
direction, notice, consent or waiver, only Exchange Notes that an Authorized Person of the
Administrative Agent knows to be so owned will be disregarded and

 

 

deemed not to be Outstanding. Exchange Notes owned by the Borrowers, the Servicer or any of their
Affiliates that have been pledged in good faith may be regarded as Outstanding if the pledgee
establishes to the satisfaction of the Administrative Agent the pledgee’s right to act with respect
to such Exchange Notes and that the pledgee is not the Borrowers, the Servicer or any of their
Affiliates. The indenture trustee with respect to any debt obligations secured by an Exchange Note
will be deemed to have established its right to act with respect to such Exchange Note.

     “Payment Date” means (i) with respect to the Revolving Facility, the 15th
day of each calendar month or, if such day is not a Business Day, the next Business Day, beginning
in August, 2005 and (ii) with respect to any Exchange Note, the dates specified in the related
Exchange Note Supplement.

     “Permitted Investments” means, with respect to any Collection Account (and except, in
the case of a Collection Amount relating to a Reference Pool, to the extent otherwise provided in
the related Exchange Note Supplement) book-entry securities, negotiable instruments or securities
represented by instruments in bearer or registered form that evidence:

	 	(i)	 	direct non-callable obligations of, and obligations fully
guaranteed as to timely payment by, the United States;
	 
	 	(ii)	 	demand deposits, time deposits, certificates of deposit or
bankers’ acceptances of any depository institution or trust company (A)
incorporated under the laws of the United States or any State thereof or any
United States branch of a foreign bank, (B) subject to supervision and
examination by federal or State banking or depository institution authorities
and (C) that at the time of the investment or contractual commitment to invest
therein, the commercial paper or other short-term unsecured debt obligations
(other than such obligations the rating of which is based on the credit of a
Person other than such depository institution or trust company) thereof have
the Required Rating;
	 
	 	(iii)	 	commercial paper, including asset-backed commercial paper,
having, at the time of the investment or contractual commitment to invest is
made, the Required Rating;
	 
	 	(iv)	 	investments in money market funds having, at the time of the
investment or contractual commitment to invest is made, a rating in the highest
investment grade category from each of S&P and Moody’s (including funds for
which the Administrative Agent or any of its Affiliates is investment manager
or advisor);
	 
	 	(v)	 	repurchase obligations with respect to any security that is a
direct non-callable obligation of, or fully guaranteed by, the United States or
any agency or instrumentality of the United States the obligations of which are
backed by the full faith and credit of the United States, in either case

 

 

	 	 	 	entered into with a depository institution or trust company (acting as
principal) described in clause (ii) above; and
	 
	 	(vi)	 	any other investment for which the Borrowers or the
Administrator has received confirmation will not result in a downgrade from
each nationally recognized statistical rating organization rating any debt
obligations that are secured by the applicable Exchange Note.

     “Permitted Lien” means, with respect to any Lease or Leased Vehicle, any tax lien,
mechanics’ lien or lien that attaches to a Lease or Leased Vehicle by operation of law and arising
solely as a result of an action or omission of the related Lessee and the lien of the Collateral
Agent pursuant to the Credit and Security Agreement.

     “Person” means any legal person, including any corporation, estate, natural person,
firm, joint venture, joint stock company, limited liability company, limited liability partnership,
partnership (limited or general), trust, business trust, unincorporated organization, association,
enterprise, Governmental Authority, any department or agency of any Governmental Authority or any
other entity of whatever nature.

     “Plan” means a Benefit Plan Investor that is subject to Title I of ERISA, Section 4975
of the Code or substantially similar federal, state or local law.

     “Posted” means, with respect to any amount (including any proceeds of the disposition
of a Leased Vehicle), except as otherwise specified in the Servicing Agreement or, if applicable,
the related Servicing Supplement, the amount that the Servicer has received, identified and posted
to a particular Lessee’s account in the Servicer’s receivable system in accordance with the Credit
and Collection Policy, the Servicing Agreement and, if applicable, the related Servicing
Supplement.

     “Posting Date” means the date a particular amount is Posted.

     “Potential Early Termination Event” means any occurrence that with notice or lapse of
time or both would become an Early Termination Event.

     “Potential Exchange Note Default” means any occurrence that with notice or lapse of
time or both would become an Exchange Note Default.

     “Potential Facility Default” means any occurrence that with notice or the lapse of
time or both would become a Facility Default.

     “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding.

     “Protected Purchaser” has the meaning specified in Section 4.05(a) of the
Credit and Security Agreement.

     “Qualified Institution” means, with respect to any Exchange Note, subject to the
related Exchange Note Supplement, any bank or depository institution organized under the laws of
the

 

 

United States or any State or any United States branch or agency of a foreign bank or
depository institution that is subject to supervision and examination by federal or State banking
or depository institution authorities and which bank or depository institution (i) has a short-term
deposit rating of “P-1” by Moody’s, “A-1+” by Standard & Poor’s and “F-1” by Fitch, (ii) if such
bank or depository institution holds any Titling Company Note Series Account other than as
segregated trust accounts and the deposits are to be held in such accounts more than 30 days, has a
long-term unsecured debt rating or Borrower rating of “AA-” by Standard & Poor’s and (iii) in the
case of any such institution organized under the laws of the United States, whose deposits are
insured by the Federal Deposit Insurance Corporation.

     “Qualified Trust Institution” means the corporate trust department of The Bank of New
York, U.S. Bank Trust National Association, U.S. Bank National Association or any other bank or
depository institution organized under the laws of the United States or any State or any United
States branch or agency of a foreign bank or depository institution that is subject to supervision
and examination by federal or State banking authorities that (a) is authorized under such laws to
act as a trustee or in any other fiduciary capacity and (b) has a long-term deposit rating of not
less than “Baa3” from Moody’s.

     “Rating Agency” means each of the nationally recognized statistical rating
organizations that is then rating debt obligations secured by an Exchange Note.

     “Reallocation Notice” with respect to any Titling Company, has the meaning specified
in the related Titling Company Agreement.

     “Reference Pool” has the meaning specified in Section 4.01(b) of the Credit
and Security Agreement.

     “Reference Pool Balance” means, with respect to any Reference Pool, the sum of the
Lease Balances of the Leases included in such Reference Pool.

     “Reference Pool Servicing Fee” has with respect to any Reference Pool, the meaning
specified in the related Servicing Supplement.

     “Registered Pledgee” with respect to any Titling Company, has the meaning specified in
the related Titling Company Agreement.

     “Required Rating” means, with respect to short-term unsecured debt obligations a
rating of (i) “P-1” by Moody’s, (ii) “A-1+” by Standard & Poor’s and (iii) if rated by Fitch, “F1+”
by Fitch.

     “Reserve Account” means the account established pursuant to a Servicing Supplement in
connection with the issuance of an Exchange Note.

     “Reserve Amount” means, with respect to any date, the amount on deposit in the
applicable Reserve Account at the opening of business on such date unless otherwise specified.

     “Revolving Facility” means the uncommitted revolving credit facility provided by the
Lender to the Borrowers pursuant to Section 2.01 of the Credit and Security Agreement.

 

 

     “Revolving Facility Allocation Percentage” means, as of any date of determination, a
fraction, expressed as a percentage (i) the numerator of which is equal to the Revolving Facility
Balance and (ii) the denominator of which is equal to the sum of (x) the Revolving Facility Balance
and (y) the aggregate of the Exchange Note Balances of all of the Exchange Notes.

     “Revolving Facility Balance” means, as of any date of determination, the unpaid
principal amount of all Advances outstanding under the Credit and Security Agreement.

     “Revolving Facility Interest Payment Amount” means, with respect to any Payment Date
and the related Interest Period, the sum of:

	 	(i)	 	the portion of the Revolving Facility Interest Payment Amount
with respect to the immediately preceding Payment Date that was not paid in
such date; and
	 
	 	(ii)	 	the product of (A) the arithmetic mean of (x) the Revolving
Facility Balance as of the open of business on the first day of such Interest
Period and (y) the Revolving Facility Balance as of the close of business on
the last day of such Interest Period, times (B) the Revolving Facility
Interest Rate, times (C) the actual number of days elapsed in such Interest
Period divided by 365 (in the case of an Interest Period falling within a year
that is not a leap year) or 366 (in the case of an Interest Period falling
within a leap year).

     “Revolving Facility Interest Rate” means, with respect to any Interest Period, the
floating rate determined by the Servicer for such Interest Period plus the spread (if any),
each as determined in accordance with the terms set forth in Exhibit C of the Credit and
Security Agreement, as such terms may be modified from time to time in accordance with Section
2.03(b) of the Credit and Security Agreement.

     “Revolving Facility Pool” means, as of any date, all Collateral Leases on such date,
including any Collateral Leases acquired with the proceeds of an Advance made on such date, but
excluding any Collateral Lease designated as part of a Reference Pool as of such date.

     “Revolving Facility Pool Additional Amounts” means, with respect to any Payment Date
in respect of the Revolving Facility, amounts that are designated as “Revolving Facility Pool
Additional Amounts” on or prior to such Payment Date in accordance with Section 10.03(g) of
the Credit and Security Agreement.

     “Revolving Facility Pool Servicing Fee” means, with respect to any Collection Period,
a fee payable by the Holding Companies as Holders of the Collateral Specified Interest Certificates
to the Servicer in an amount equal to the product of:

	 	(i)	 	one-twelfth of 1%; times
	 
	 	(ii)	 	the aggregate Lease Balance of the Collateral Leases (excluding
Collateral Leases that have been allocated to a Reference Pool) determined as
of the end of the preceding Collection Period.

 

 

     “Revolving Facility Principal Payment Amount” has the meaning specified in Section
2.01(c) of the Credit and Security Agreement.

     “Revolving Facility Servicer Event of Default” has the meaning specified in
Section 8.2(a) of the Servicing Agreement.

     “Revolving Period” means the period beginning on and including the Closing Date and
ending on but excluding the earlier of (i) the Facility Termination Date, or (ii) the date on which
the Lender terminates the Revolving Period pursuant to Section 2.01(f) or Section
6.04 of the Credit and Security Agreement.

     “Schedule of Reference Pool Assets” means the Schedule of Reference Pool Assets
attached to each Exchange Note Supplement.

     “Scheduled Lease End Date” means, with respect to any Lease, the date set forth in
such Lease as the termination date adjusted to take into account any Payment Extension through and
including the Cutoff Date.

     “Secured Obligations” has the meaning specified in Section 3.02(b) of the
Credit and Security Agreement.

     “Secured Parties” means the Lender and each Exchange Noteholder.

     “Securities Act” means the Securities Act of 1933.

     “Series,” with respect to any Titling Company, has the meaning specified in the
related Titling Company Agreement.

     “Servicer” means Ford Credit, as servicer with respect to the Collateral Specified
Interests pursuant to the Servicing Agreement.

     “Servicer Event of Default” means a Facility Servicer Event of Default, a Revolving
Facility Servicer Event of Default or an Exchange Note Servicer Event of Default, as the context
requires.

     “Servicing Agreement” means the Amended and Restated Servicing Agreement, dated as of
1, 2006, among Ford Credit, as Servicer with respect to the Collateral Specified Interests and as
Lender, the Holding Companies, as Holders of the Collateral Specified Interest Certificates, and
HTD, as Collateral Agent, as supplemented by each Servicing Supplement.

     “Servicing Fee” means, with respect to any Collection Period, the sum of Revolving
Facility Pool Servicing Fee and the Reference Pool Servicing Fees, if any.

     “Servicing Supplement” has the meaning specified in Section 2.3 of the
Servicing Agreement.

     “Shared Amounts” means, with respect to any Reference Pool, any amounts that are
designated as “Shared Amounts” pursuant to the applicable Exchange Note Supplement.

 

 

     “Specification Notice,” with respect to any Titling Company, has the meaning specified
in the related Titling Company Agreement.

     “Specified Interest,” with respect to any Titling Company, has the meaning specified
in the related Titling Company Agreement.

     “Standard & Poor’s” and “S&P” means Standard & Poor’s Ratings Services, a
division of The McGraw-Hill Companies, Inc.

     “State” means any State or Commonwealth of the United States or the District of
Columbia.

     “Titling Company” means each of CAB East, CAB West, and FCALM.

     “Titling Company Administrator” means Ford Credit, as Administrator under each Titling
Company Agreement.

     “Titling Company Administrator Fee” means, with respect to each Titling Company and
any Specified Interest, the Specified Asset Titling Company Administrator Fee with respect to the
such Specified Interest.

     “Titling Company Agreements” means the CAB East Agreement, the CAB West Agreement and
the FCALM Agreement.

     “Titling Company Interest” with respect to any Titling Company, has the meaning
specified in the related Titling Company Agreement.

     “Titling Company Registrar,” with respect to any Titling Company, has the meaning
specified in the related Titling Company Agreement.

     “Transfer” has the meaning specified in Section 4.04(f)(iv) of the Credit and
Security Agreement.

     “Treasury Regulations” means the regulations promulgated by the U.S. Department of
Treasury pursuant to the Code.

     “UCC” means the Uniform Commercial Code as in effect in any relevant jurisdiction.

     “U.S. Bank” means U.S. Bank National Association, a national banking association.exv4w4

Exhibit 4.4

 

20_-_ EXCHANGE NOTE SUPPLEMENT

to

AMENDED AND RESTATED

CREDIT AND SECURITY AGREEMENT

Dated as of December 1, 2006

among

CAB EAST LLC, and

CAB WEST LLC,

as Borrowers,

U.S. BANK NATIONAL ASSOCIATION,

as Administrative Agent,

HTD LEASING LLC,

as Collateral Agent

and

FORD MOTOR CREDIT COMPANY LLC,

as Lender and as Servicer

Dated as of _______, 20__

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I USAGE AND DEFINITIONS
	 	 	1	 
	Section 1.1. Usage and Definitions
	 	 	1	 
	 
	 	 	 	 
	ARTICLE II THE 20_-_ EXCHANGE NOTE
	 	 	1	 
	Section 2.1. Creation and Designation
	 	 	1	 
	Section 2.2. Form of Execution, Authentication and Delivery of the 20_-_ Exchange
Note; Delivery and Payment for the 20_-_ Exchange Note
	 	 	2	 
	Section 2.3. Transfer Restrictions with Respect to the 20_-_ Exchange Note
	 	 	2	 
	Section 2.4. Interest Payments on the 20_-_ Exchange Note
	 	 	2	 
	Section 2.5. Payments of Principal on the 20_-_ Exchange Note
	 	 	3	 
	Section 2.6. Reserve Account
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III THE 20_-_ REFERENCE POOL
	 	 	4	 
	Section 3.1. The 20_-_ Reference Pool
	 	 	4	 
	 
	 	 	 	 
	ARTICLE IV EXCHANGE NOTE DEFAULTS AND REMEDIES
	 	 	4	 
	Section 4.1. 20_-_ Exchange Note Defaults
	 	 	4	 
	Section 4.2. Exchange Note Remedies
	 	 	4	 
	 
	 	 	 	 
	ARTICLE V APPLICATION OF COLLECTIONS ON THE 20_-_ REFERENCE POOL
	 	 	4	 
	Section 5.1. Application of Collections on the 20_-_ Reference Pool Where No
Facility Default or Exchange Note Default Has Occurred
	 	 	4	 
	Section 5.2. Modified Priorities Following Liquidation
	 	 	5	 
	 
	 	 	 	 
	ARTICLE VI SECURITY INTEREST
	 	 	6	 
	Section 6.1. Security Interest
	 	 	6	 
	 
	 	 	 	 
	ARTICLE VII MISCELLANEOUS
	 	 	6	 
	Section 7.1. Amendments
	 	 	6	 
	Section 7.2. 20_-_ Exchange Noteholders Entitled to Benefits of this Supplement
	 	 	6	 
	Section 7.3. Governing Law
	 	 	7	 
	Section 7.4. Submission to Jurisdiction; Service of Process
	 	 	7	 
	Section 7.5. Severability
	 	 	7	 
	Section 7.6. Counterparts
	 	 	7	 
	Section 7.7. Headings
	 	 	7	 
	Section 7.8. No Petition
	 	 	7	 

i 

 

	 	 	 	 	 

	Schedule A Collateral Leases and Collateral Leased Vehicles in 20_-_ Reference Pool
	 	SA-1
	Exhibit A Form of 20_-_ Exchange Note
	 	EA-1
	Appendix 1 Usage and Definitions
	 	 	A1-1	 

ii 

 

     20_-_ EXCHANGE NOTE SUPPLEMENT, dated as of _______, 20__ (this “Supplement”), by and
among CAB EAST LLC, a Delaware limited liability company, CAB WEST LLC, a Delaware limited
liability company (each, a “Borrower” and collectively, the “Borrowers”), FORD
MOTOR CREDIT COMPANY LLC, a Delaware limited liability company, as lender (in such capacity, the
“Lender”) and as servicer (in such capacity, the “Servicer”), U.S. BANK NATIONAL
ASSOCIATION, a national banking association, as administrative agent (in such capacity, the
“Administrative Agent”) and not in its individual capacity, and HTD LEASING LLC, a Delaware
limited liability company, as collateral agent (the “Collateral Agent”).

     Section 4.01 of the Amended and Restated Credit and Security Agreement, dated as of December
1, 2006 (the “Credit and Security Agreement”), among the Borrowers, the Lender and
Servicer, the Administrative Agent and the Collateral Agent provides that the parties thereto may
at any time and from time to time enter into a supplement to the Credit and Security Agreement for
the purpose of authorizing the issuance, execution and authentication of one or more Exchange
Notes.

     The Lender has tendered the notice required by Section 4.02(e)(i) of the Credit and Security
Agreement and enters into this Supplement with the parties thereto as required by Section
4.02(e)(ii) of the Credit and Security Agreement to provide for the issuance, authentication and
delivery of the 20_-_ Exchange Note.

     The parties to this Supplement wish to create the 20_-_ Exchange Note and specify the
principal terms thereof.

ARTICLE I

USAGE AND DEFINITIONS

     Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined
in this Supplement are defined in Appendix 1 or, if not defined in Appendix 1, are defined in
Appendix A to the Credit and Security Agreement. Appendix A also contains rules as to usage
applicable to this Supplement and is incorporated by reference into this Supplement.

ARTICLE II

THE 20_-_ EXCHANGE NOTE

     Section 2.1. Creation and Designation.

     (a) There is hereby created an Exchange Note to be issued pursuant to the Credit and Security
Agreement and this Supplement to be known as the “20_-_ Exchange Note.”

     (b) The terms of the 20_-_ Exchange Note are as follows:

     (i) the Exchange Note Issuance Date is ________, 20__;

     (ii) the Exchange Note Initial Principal Balance for the 20_-_ Exchange Note is
$________;

     (iii) the Cutoff Date for the 20_-_ Reference Pool is _______, 20__;

 

 

     (iv) the Exchange Note Interest Rate for the 20_-_ Exchange Note is ____%;

     (v) the Final Scheduled Payment Date for 20_-_ Exchange Note is ______, 20__; and

     (vi) the 20_-_ Exchange Note will be issued as a single class.

     Section 2.2. Form of Execution, Authentication and Delivery of the 20_-_ Exchange Note;
Delivery and Payment for the 20_-_ Exchange Note.

     (a) The 20_-_ Exchange Note, together with the Administrative Agent’s certificate of
authentication on such Exchange Note, will be delivered in the form of a certificated note
substantially in the form set forth as Exhibit A and will satisfy the requirements of Sections 4.01
and 4.02 of the Credit and Security Agreement. The 20_-_ Exchange Note may be Transferred only in
whole and not in part.

     (b) Each of the Borrowers and the other parties to this Supplement will execute and the
Borrowers will deliver to the Administrative Agent (i) the 20_-_ Exchange Note for authentication
and (ii) this Supplement, and following receipt thereof and satisfaction of the conditions set
forth in Section 4.02(e) of the Credit and Security Agreement, the Administrative Agent will (A)
acknowledge this Supplement and (B) authenticate and deliver the 20_-_ Exchange Note in accordance
with Section 4.02(f) of the Credit and Security Agreement.

     (c) Each of the Borrowers represents and warrants that upon satisfaction of the conditions set
forth in Sections 2.2(a) and (b), the 20_-_ Exchange Note will have been duly authorized, executed
and delivered under this Supplement.

     (d) The 20_-_ Exchange Note will state that (i) if an Insolvency Event occurs with respect to
any of the Borrowers, any claim that the 20_-_ Exchange Noteholder may seek to enforce at any time
against any of the Borrowers will be limited in recourse to the 20_-_ Reference Pool (except to the
extent of the 20_-_ Shared Amounts), (ii) if, notwithstanding clause (i), the 20_-_ Exchange
Noteholder is deemed to have any claim against the assets of the Borrowers other than the assets
included in the 20_-_ Reference Pool, such claim will be subordinate to the payment in full,
including post-petition interest, of the claims of the Lender and to the holders of (A) all other
Exchange Notes and (B) in the case of assets allocated to a Specified Interest other than the
Collateral Specified Interest, all other asset-backed securities, the payments on which are derived
primarily from collections on designated assets of the Borrowers and all related hedging
arrangements and (iii) such recitation constitutes an enforceable subordination agreement for
purposes of Section 510(a) of the Bankruptcy Code.

     Section 2.3. Transfer Restrictions with Respect to the 20_-_ Exchange Note. By
acceptance of the 20_-_ Exchange Note, the 20_-_ Exchange Noteholder agrees with and makes, as of
the date of this Supplement, the representations set forth in Section 4.04(f) of the Credit and
Security Agreement.

     Section 2.4. Interest Payments on the 20_-_ Exchange Note. For each Payment Date, the
amount of interest due with respect to the 20_-_ Exchange Note (the “Exchange Note Interest
Payment Amount”) will be an amount equal to the sum of: (a) the product of (i) the Exchange
Note

 

 

Balance as of the first day of the Exchange Note Interest Period, times (ii) the
Exchange Note Interest Rate, times (iii) a fraction, (A) the numerator of which is [30 (or
in the case of the first Payment Date, __)] and (B) the denominator of which is 360, plus (b) the
portion of the Exchange Note Interest Payment Amount for the immediately preceding Payment Date, if
any, that was not paid on such date.

     Section 2.5. Payments of Principal on the 20_-_ Exchange Note.

     (a) For each Payment Date, the amount of principal payable on the 20_-_ Exchange Note (the
“Exchange Note Principal Payment Amount”) will be an amount equal to the sum of (i) the
excess of (A) the Pool Balance as of the first day of the related Collection Period over (B) the
Pool Balance as of the first day of the Collection Period that includes the Payment Date plus (ii)
the portion of the Exchange Note Principal Payment Amount, if any, that was not paid on the prior
Payment Date. The entire outstanding Exchange Note Balance will become due and payable on the
Exchange Note Final Scheduled Payment Date.

     (b) Notwithstanding the foregoing, the entire unpaid Exchange Note Balance will be due and
payable on the date on which an Exchange Note Default with respect to the 20_-_ Exchange Note has
occurred and is continuing, and the 20_-_ Exchange Noteholder has declared the 20_-_ Exchange Note
to be immediately due and payable in the manner provided in the Credit and Security Agreement.

     Section 2.6. Reserve Account.

     (a) In connection with the issuance of the 20_-_ Exchange Note, the Servicer will establish a
segregated trust account pursuant to the Servicing Supplement which will be designated as the
“Reserve Account.”

     (b) On the 20_-_ Closing Date, the Depositor will deposit, or cause to be deposited, the
Reserve Initial Deposit into the Reserve Account.

     (c) On each Payment Date, the Indenture Trustee will deposit into the Reserve Account all
amounts available in accordance with Section 5.1(e) until the amount on deposit therein is equal to
the Required Reserve Amount.

     (d) On each Payment Date, the Indenture Trustee will withdraw the Reserve Account Draw Amount
from the Reserve Account and apply such amount in accordance with Section 5.1.

     (e) Following the liquidation of the 20_-_ Collateral upon the occurrence of any Event of
Default that has resulted in an acceleration of the Notes, the Indenture Trustee will apply all
amounts then on deposit in the Reserve Account (other than investment earnings) in accordance with
Section 8.2(d) of the Indenture.

 

 

ARTICLE III

THE 20_-_ REFERENCE POOL

     Section 3.1. The 20_-_ Reference Pool.

     (a) The 20_-_ Exchange Note will be payable primarily from Collections on the Collateral
Leases and Collateral Leased Vehicles included in the 20_-_ Reference Pool in accordance with the
priorities set forth in Section 5.1. For purposes of determining the Collections that are
applicable to the 20_-_ Reference Pool, the Collateral Leases and Collateral Leased Vehicles
included in the 20_-_ Reference Pool will be deemed to have been included in the 20_-_ Reference
Pool from and after the Cutoff Date. A schedule of Leases is attached as Schedule A.

     (b) Collateral Leases and Collateral Leased Vehicles included in the 20_-_ Reference Pool will
not be included in the Revolving Facility Pool or in any other Reference Pool (other than after a
reallocation of a Collateral Lease and the related Collateral Leased Vehicle by the Servicer
pursuant to Section 3.5 of the Servicing Supplement) and no Collateral Leases or Collateral Leased
Vehicles included in the Revolving Facility Pool or any other Reference Pool after the Cutoff Date
will be included in the 20_-_ Reference Pool.

     (c) Upon repayment in full of the 20_-_ Exchange Note, the 20_-_ Reference Pool will be deemed
to be terminated and the Collateral Leases and Collateral Leased Vehicles included in the 20_-_
Reference Pool will be reallocated to the Revolving Facility Pool.

ARTICLE IV

EXCHANGE NOTE DEFAULTS AND REMEDIES

     Section 4.1. 20_-_ Exchange Note Defaults. The Exchange Note Defaults applicable to
the 20_-_ Exchange Note are set forth in Section 6.04 of the Credit and Security Agreement.

     Section 4.2. Exchange Note Remedies.

     (a) If a Facility Default or an Exchange Note Default has occurred, the 20_-_ Exchange
Noteholder may take the actions set forth in Section 6.05(a) of the Credit and Security Agreement.

     (b) Any Secured Party may submit a bid with respect to any such liquidation or sale of the
Collateral included in the 20_-_ Reference Pool pursuant to Section 6.05(a)(ii)(z) of the Credit
and Security Agreement.

ARTICLE V

APPLICATION OF COLLECTIONS ON THE 20_-_ REFERENCE POOL

     Section 5.1. Application of Collections on the 20_-_ Reference Pool Where No Facility
Default or Exchange Note Default Has Occurred. On each Payment Date (except with respect to
any proceeds of any liquidation or sale of the Collateral after the 20_-_ Exchange Note is
accelerated following a Facility Default or an Exchange Note Default), the Indenture Trustee will,

 

 

with respect to the 20_-_ Reference Pool (based on the information contained in the Monthly
Investor Report delivered before such Payment Date pursuant to Section 6.1 of the Servicing
Supplement), withdraw from the Exchange Note Collection Account an amount equal to the 20_-_
Collections for such Payment Date and apply such amounts, together with any Shared Amounts
allocated to the 20_-_ Exchange Note and the Reserve Account Draw Amount, if any, in accordance
with the following order of priority:

     (a) to the Servicer, the Reference Pool Servicing Fee and any Advance Reimbursement Amount for
the related Collection Period, to the extent that such amounts have not been paid from 20_-_
Collections that have been retained by the Servicer pursuant to the Servicing Supplement;

     (b) to the 20_-_ Exchange Noteholder, the Exchange Note Interest Payment Amount;

     (c) to the 20_-_ Exchange Noteholder, (i) on any Payment Date other than an Exchange Note
Redemption Date, the Exchange Note Principal Payment Amount, as a payment of principal of the 20_-_
Exchange Note until the Exchange Note Balance has been reduced to zero or (ii) on the Exchange Note
Redemption Date, an amount equal to the Exchange Note Purchase Price (to the extent such amount has
not been paid pursuant to clause (b) above);

     (d) to the 20_-_ Exchange Noteholder, the amount, in any, necessary to cover any shortfall in
payment under Sections 8.2(b)(i) through (vi) of the Indenture on such Payment Date;

     (e) to the Reserve Account, the amount, if any, required for the amount on deposit in the
Reserve Account to equal the Required Reserve Amount;

     (f) to be applied as Shared Amounts with respect to any other Exchange Note as to which an
Exchange Note Default described in Sections 6.04(a)(i) or 6.04(a)(ii) of the Credit and Security
Agreement has occurred and is continuing (and, should there be more than one Exchange Note other
than the 20_-_ Exchange Note, the amounts applied pursuant to this clause (f) will be allocated as
Shared Amounts among such Exchange Notes pro rata based on their respective
Exchange Note Allocation Percentages); and

     (g) all remaining funds, to be applied as Revolving Facility Pool Additional Amounts in the
manner and in the priority set forth in Section 10.02 of the Credit and Security Agreement.

     All amounts payable to the 20_-_ Exchange Noteholder pursuant to this Section 5.1 and pursuant
to Section 5.2 will be deposited by the Indenture Trustee into the Collection Account.

     Section 5.2. Modified Priorities Following Liquidation. Notwithstanding Section 5.1,
following the acceleration of the 20_-_ Exchange Note upon a Facility Default or Exchange Note
Default, the proceeds of the sale or liquidation of any portion of the Collateral included in the
20_-_ Reference Pool pursuant to Section 6.05(a)(ii)(z) of the Credit and Security Agreement will
be applied in accordance with the following priorities:

     (a) to pay to the Collateral Agent any amounts due with respect to the 20_-_ Exchange Note or
the 20_-_ Reference Pool under Section 3.01(c) of the Credit and Security Agreement or Article VIII
of the Credit and Security Agreement to the extent such amounts have not been paid by the Borrowers
or the Titling Company Administrator;

 

 

     (b) to pay to the Administrative Agent any amounts due with respect to the 20_-_ Exchange Note
or the 20_-_ Reference Pool under Section 7.05 of the Credit and Security Agreement or Article VIII
of the Credit and Security Agreement;

     (c) to make the payments described in Section 5.1(a);

     (d) to make payments to the 20_-_ Exchange Noteholder, to the extent necessary to pay all
accrued and unpaid interest on the 20_-_ Exchange Note and any interest on such accrued and unpaid
interest at the Exchange Note Interest Rate;

     (e) to make payments to the 20_-_ Exchange Noteholder, to the extent necessary to reduce the
Exchange Note Balance to zero;

     (f) to make payments in the manner described in Section 5.1(f); and

     (g) to make payments in the manner described in Section 5.1(g).

ARTICLE VI

SECURITY INTEREST

     Section 6.1. Security Interest. Each Borrower hereby confirms its grant under the
Credit and Security Agreement of a security interest in the Collateral to the Collateral Agent. In
addition, each Borrower hereby grants to the Collateral Agent on behalf of the Secured Parties a
security interest in the Collateral.

ARTICLE VII

MISCELLANEOUS

     Section 7.1. Amendments.

     (a) This Supplement may be amended in accordance with Article IX of the Credit and Security
Agreement; provided that the Administrative Agent will provide or withhold consent with
respect to any proposed amendment to this Supplement or the Credit and Security Agreement that
materially affects the rights or obligations of the Servicer with respect to the Collateral
Specified Interests and the 20_-_ Reference Pool, only as directed by the Noteholders of Notes
evidencing not less than a majority of the Note Balance of the Controlling Class.

     (b) Promptly upon the execution of any such amendment, (i) the Servicer will send a copy of
such amendment to the Indenture Trustee and each of the Rating Agencies and (ii) the Indenture
Trustee will notify each holder of a Note of the substance of such amendment.

     Section 7.2. 20_-_ Exchange Noteholders Entitled to Benefits of this Supplement. Ford
Credit will be the initial 20_-_ Exchange Noteholder. Any subsequent 20_-_ Exchange Noteholder, by
accepting the 20_-_ Exchange Note, will be deemed to have agreed to the terms and conditions of the
Credit and Security Agreement and this Supplement and will be entitled to

 

 

the benefits of the Credit and Security Agreement and this Supplement with the same effect as
if such 20_-_ Exchange Noteholder had been a party thereto or hereto.

     Section 7.3. GOVERNING LAW. THIS SUPPLEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, EXCEPT THAT, PURSUANT TO SECTION 3809 OF TITLE
12 OF THE DELAWARE CODE, THE DOCTRINE OF MERGER WILL NOT BE APPLICABLE TO THIS SUPPLEMENT.

     Section 7.4. Submission to Jurisdiction; Service of Process. The Administrative Agent
submits to the nonexclusive jurisdiction of any United States District Court sitting in Delaware
and of any Delaware state court for purposes of all legal proceedings arising out of or relating to
this Supplement. The Administrative Agent irrevocably waives, to the fullest extent it may do so,
any objection that it may now or hereafter have to the laying of the venue of any such proceeding
brought in such a court and any claim that any such proceeding brought in such a court has been
brought in an inconvenient forum. The Administrative Agent irrevocably appoints U.S. Bank Trust
National Association, at its Corporate Trust Office, as its authorized agent on which any and all
legal process may be served in any such legal proceeding brought in any such court. If for any
reason such agent ceases to be available to act as such, the Administrative Agent agrees to
designate a new agent in the State of Delaware for receipt of service of legal process.

     Section 7.5. Severability. If any one or more of the covenants, agreements or terms
of this Supplement is held invalid, illegal or unenforceable, then it will be deemed severable from
the remaining covenants, agreements, provisions and terms of this Supplement and will in no way
affect the validity, legality or enforceability of the remaining parts of this Supplement.

     Section 7.6. Counterparts. This Supplement may be executed in any number of
counterparts. Each counterpart will be an original, and all counterparts will together constitute
one and the same instrument.

     Section 7.7. Headings. The headings in this Supplement are included for convenience
only and will not affect the meaning or interpretation of this Supplement.

     Section 7.8. No Petition. Each party to this Supplement covenants that for a period
of one year and one day (or, if longer, any applicable preference period) after payment in full of
the Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all holders
of any other Securities (as defined in the related Titling Company Agreement) the payments on which
are derived in any material part from amounts received with respect to any Titling Company Assets
(as defined in the applicable Titling Company Agreements), it will not institute against, or join
any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling
Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
United States federal or state bankruptcy or similar law in connection with any obligations
relating to the 20_-_ Exchange Note, the Notes, this Supplement or any of the other 20_-_ Basic
Documents and agrees it will not cooperate with or encourage others to file a bankruptcy petition
against the Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the
Collateral Specified Interest Certificates during the same period.

 

 

[Remainder of Page Intentionally Left Blank]

 

 

EXECUTED BY:

	 	 	 	 	 
	 	CAB EAST LLC,

     as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	CAB WEST LLC,

     as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	FORD MOTOR CREDIT COMPANY LLC,

     as Lender and as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	Scott D. Krohn 	 
	 	 	Title:  	Assistant Treasurer 	 
	 

[Signature Page to Exchange Note Supplement]

 

 

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

     not in its individual capacity but solely as

     Administrative Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	HTD LEASING LLC,

     as Collateral Agent

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

[Signature Page to Exchange Note Supplement]

 

 

Schedule A

Collateral Leases and Collateral Leased Vehicles in 20_-_ Reference Pool

(CD on File with Collateral Agent)

SA-1

 

Exhibit A

Form of 20_-_ Exchange Note

     THIS 20_-_ EXCHANGE NOTE MAY BE TRANSFERRED ONLY IN WHOLE AND NOT IN PART. ANY TRANSFER IN
VIOLATION OF THE FOREGOING WILL BE OF NO FORCE AND EFFECT, WILL BE VOID FROM THE BEGINNING, AND
WILL NOT OPERATE TO TRANSFER ANY RIGHTS TO THE PURCHASER OR TRANSFEREE, NOTWITHSTANDING ANY
INSTRUCTIONS TO THE CONTRARY TO THE LENDER, THE BORROWERS, THE ADMINISTRATIVE AGENT OR ANY
INTERMEDIARY.

     THE HOLDER OF THIS 20_-_ EXCHANGE NOTE WILL BE DEEMED TO HAVE REPRESENTED AND WARRANTED THAT
EITHER (A) IT IS NOT, AND IS NOT ACTING ON BEHALF OF OR INVESTING THE ASSETS OF, AN EMPLOYEE
BENEFIT PLAN OR OTHER RETIREMENT PLAN OR ARRANGEMENT THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE
RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL
REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR ANY FEDERAL, STATE, LOCAL OR NON-U.S. LAW
OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975
OF THE CODE (“SIMILAR LAW”) OR (B) ITS ACQUISITION AND HOLDING OF THIS 20_-_ EXCHANGE NOTE
DOES NOT CONSTITUTE AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER ERISA OR THE
CODE BY REASON OF THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM THE PROHIBITED
TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY SIMILAR LAW, ITS ACQUISITION AND HOLDING OF
THIS 20_-_ EXCHANGE NOTE DOES NOT CONSTITUTE AND WILL NOT RESULT IN A VIOLATION OF SUCH SIMILAR
LAW).

     THE PRINCIPAL OF THIS 20_-_ EXCHANGE NOTE IS PAYABLE IN INSTALLMENTS AS SET FORTH HEREIN.
ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS 20_-_ EXCHANGE NOTE AT ANY TIME MAY BE LESS
THAN THE AMOUNT SHOWN ON THE FACE HEREOF.

EA-1

 

			
	REGISTERED	 	 
	 	 	 
	No. 1
	 	$[          ]

[     ]% 20_-_ EXCHANGE NOTE

     CAB EAST LLC and CAB WEST LLC, as Borrowers (the “Borrowers”), for value received,
hereby promise to pay to FORD CREDIT AUTO LEASE TRUST 20_-_, as 20_-_ Exchange Noteholder (the
“20_-_ Exchange Noteholder”) for its benefit and the benefit of the other transferees from
time to time acquiring interests herein pursuant to the Exchange Note Supplement, dated as of
_______, 20__ (the “Exchange Note Supplement”) among the Borrowers, Ford Motor Credit
Company LLC, as Lender and Servicer, U.S. Bank National Association, as Administrative Agent, and
HTD Leasing LLC, as Collateral Agent, and other transferees or registered assigns, the principal
sum of [          ] DOLLARS AND [          ] CENTS ($[          ]) payable on each Payment Date in
an amount equal to the Exchange Note Principal Payment Amount for such Payment Date pursuant to
Section 2.5 of the Exchange Note Supplement; provided, however, that (i) the entire
unpaid principal amount of this Note will be due and payable on the [          ] Payment Date (the
“Exchange Note Final Scheduled Payment Date”) and (ii) the 20_-_ Exchange Note may be
redeemed earlier than the Exchange Note Final Scheduled Payment Date pursuant to Section 5.1 of the
Servicing Supplement, dated as of _______, 20__, among Ford Motor Credit Company LLC, as Servicer,
the Holding Companies, as Holders of the Collateral Specified Interest Certificates, and HTD
Leasing LLC, as Collateral Agent (the “Servicing Supplement”). Capitalized terms used but
not defined in this 20_-_ Exchange Note are defined in Appendix 1 to the Exchange Note Supplement
or Appendix A to the Credit and Security Agreement. Appendix 1 and Appendix A also contain rules
as to usage applicable to this 20_-_ Exchange Note.

     The payment of interest on, and principal of, this 20_-_ Exchange Note will constitute the
joint and several obligation of the Borrowers.

     The Borrowers will pay interest on this 20_-_ Exchange Note in an amount equal to the Exchange
Note Interest Payment Amount until the principal of this 20_-_ Exchange Note is paid or made
available for payment. The amount of interest due on this 20_-_ Exchange Note on each Payment Date
will be calculated on the basis of the Exchange Note Balance outstanding as of the first day of
such Exchange Note Interest Period (after giving effect to all payments of principal made on the
preceding Payment Date), and will be subject to certain limitations contained in Section 2.4 of the
Exchange Note Supplement. Such principal of and interest on this 20_-_ Exchange Note will be paid
in the manner specified on the reverse hereof.

     The principal of and interest on this 20_-_ Exchange Note are payable in such coin or currency
of the United States of America as at the time of payment is legal tender for payment of public and
private debts. All payments made by the Borrowers with respect to this 20_-_ Exchange Note will be
applied to interest on and principal of this 20_-_ Exchange Note in the manner set forth in the
Exchange Note Supplement.

EA-2

 

     Reference is made to the further provisions of this 20_-_ Exchange Note set forth on the
reverse hereof, which will have the same effect as though fully set forth on the face of this 20_-_
Exchange Note.

     Unless the certificate of authentication hereon has been executed by the Administrative Agent
whose name appears below by manual or facsimile signature, this 20_-_ Exchange Note will not be
entitled to any benefit under the Credit and Security Agreement or the Exchange Note Supplement
referred to on the reverse hereof, or be valid or obligatory for any purpose.

[Remainder of This Page Intentionally Left Blank]

EA-3

 

     IN WITNESS WHEREOF, each of the Borrowers has caused this instrument to be signed, manually or
in facsimile, by its Authorized Person, as of the date set forth below.

	 	 	 	 	 
	 	CAB EAST LLC,

     as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 
	 	CAB WEST LLC,

     as a Titling Company

 	 
	 	By:  	 	 
	 	 	Name:  	Susan J. Thomas 	 
	 	 	Title:  	Secretary 	 
	 

EA-4

 

ADMINISTRATIVE AGENT’S CERTIFICATE OF AUTHENTICATION

     This is the 20_-_ Exchange Note designated above and referred to in the within-mentioned
Exchange Note Supplement.

Date: _______ __, 20__

	 	 	 	 	 
	 	U.S. BANK NATIONAL ASSOCIATION,

     not in its individual capacity but solely as

     Administrative Agent

 	 
	 	By:  	 	 
	 	 	Responsible Person 	 
	 	 	 	 
	 

EA-5

 

REVERSE OF 20_-_ EXCHANGE NOTE

     This 20_-_ Exchange Note is one of the duly authorized issue of Exchange Notes, which may be
issued under the Credit and Security Agreement, to which Credit and Security Agreement and all
Exchange Note Supplements that are supplemental thereto reference is made for a statement of the
respective rights and obligations thereunder of the Borrowers, the Lender, the Servicer, the
Administrative Agent, the Collateral Agent and the Exchange Noteholders. This 20_-_ Exchange Note
is subject to all terms of the Credit and Security Agreement and the Exchange Note Supplement. In
the event of a conflict between the terms of this 20_-_ Exchange Note, the terms of the Credit and
Security Agreement and the terms of the Exchange Note Supplement, the Exchange Note Supplement will
prevail.

     Interest on and principal of this 20_-_ Exchange Note will be payable in accordance with the
priority of payments set forth in Section 5.1 of the Exchange Note Supplement.

     Principal of this 20_-_ Exchange Note will be payable on each Payment Date in an amount equal
to the Exchange Note Principal Payment Amount for such Payment Date. “Payment Date” means
the 15th day of each calendar month or, if any such day is not a Business Day, the next Business
Day, commencing November 15, 2010.

     As described on the face hereof, the entire unpaid principal amount of this 20_-_ Exchange
Note will be due and payable on the Exchange Note Final Scheduled Payment Date. Notwithstanding
the foregoing, the entire unpaid principal amount of this 20_-_ Exchange Note will be due and
payable on the date on which an Exchange Note Default with respect to this 20_-_ Exchange Note has
occurred and is continuing and the 20_-_ Exchange Noteholder has declared this 20_-_ Exchange Note
to be immediately due and payable in the manner provided in the Credit and Security Agreement.

     Payments of interest on this 20_-_ Exchange Note on each Payment Date, together with the
installment of principal, if any, to the extent not in full payment of this 20_-_ Exchange Note,
will be made to the account of the 20_-_ Exchange Noteholder either by wire transfer in immediately
available funds, to the account of such 20_-_ Exchange Noteholder or an account designated by the
20_-_ Exchange Noteholder at a bank or other entity having appropriate facilities therefor if such
20_-_ Exchange Noteholder has provided to the Exchange Note Registrar appropriate written
instructions at least five (5) Business Days prior to such Payment Date or, if not, by check mailed
first-class mail postage prepaid to the 20_-_ Exchange Noteholder’s address as it appears on the
Exchange Note Register prior to such Payment Date, except that the final installment of principal
payable on this 20_-_ Exchange Note on a Payment Date or the Exchange Note Final Scheduled Payment
Date will be payable only upon the presentation and surrender of this 20_-_ Exchange Note in the
manner set forth in Section 4.06(b) of the Credit and Security Agreement. Such payments will be
made without requiring that this 20_-_ Exchange Note be submitted for notation of payment. Any
reduction in the principal amount of this 20_-_ Exchange Note effected by any payments made on any
Payment Date will be binding upon all future 20_-_ Exchange Noteholders of this 20_-_ Exchange Note
and of any 20_-_ Exchange Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof, whether or not noted hereon. If funds are expected to be available, as
provided in the Exchange Note Supplement and the Credit and Security Agreement, for payment in full
of the then

EA-6

 

remaining unpaid principal amount of this 20_-_ Exchange Note on a Payment Date, then the
Administrative Agent will notify the 20_-_ Exchange Noteholder of the date on which the Borrowers
expect that the final installment of principal of and interest on this 20_-_ Exchange Note will be
paid not later than 5 days prior to such date. Such notice will specify that such final
installment will be payable only upon presentation and surrender of this 20_-_ Exchange Note and
will specify the place where the 20_-_ Exchange Note may be presented and surrendered for payment
of such installment.

     As provided in the Servicing Supplement, this 20_-_ Exchange Note may be purchased by the
Servicer, in whole but not in part, in the manner and to the extent described in Section 5.1 of the
Servicing Supplement.

     The transfer of this 20_-_ Exchange Note is subject to the restrictions on transfer specified
on the face hereof and to the other limitations set forth in the Credit and Security Agreement and
the Exchange Note Supplement. Subject to the satisfaction of such restrictions and limitations,
the transfer of this 20_-_ Exchange Note may be registered on the Exchange Note Register upon
surrender of this 20_-_ Exchange Note for registration of transfer at the office or agency
designated by the Borrowers pursuant to the Credit and Security Agreement, duly endorsed by, or
accompanied by a written instrument of transfer in form satisfactory to the Administrative Agent
duly executed by, the 20_-_ Exchange Noteholder hereof or the 20_-_ Exchange Noteholder’s attorney
duly authorized in writing, with such signature guaranteed by an “eligible guarantor institution”
meeting the requirements of the Exchange Note Registrar, and thereupon a new 20_-_ Exchange Note in
the same aggregate principal amount will be issued to the designated transferee. No service charge
will be charged for any registration of transfer or exchange of this 20_-_ Exchange Note, but the
transferor may be required to pay a sum sufficient to cover any tax or other governmental charge
that may be imposed in connection with any such registration of transfer or exchange.

     The 20_-_ Exchange Noteholder, by accepting this 20_-_ Exchange Note acknowledges and agrees
that (i) if an Insolvency Event occurs with respect to any of the Borrowers, any claim that the
20_-_ Exchange Noteholder may seek to enforce at any time against any of the Borrowers will be
limited in recourse to the 20_-_ Reference Pool (except to the extent of Shared Amounts allocated
to the 20_-_ Exchange Noteholder pursuant to Section 5.1 of the Exchange Note Supplement) and (ii)
if, notwithstanding clause (i), the 20_-_ Exchange Noteholder is deemed to have any claim against
the assets of the Borrowers other than the assets included in the 20_-_ Reference Pool, whether by
operation of law, legal process, pursuant to insolvency laws or otherwise (including by virtue of
Section 1111(b) of the Bankruptcy Code), such claim will be subordinate to the payment in full,
including post-petition interest, of the claims of the Lender and to the holders of (A) all other
Exchange Notes and (B) in the case of assets allocated to a Specified Interest other than the
Collateral Specified Interest, all other asset-backed securities, the payments on which are derived
primarily from collections on designated assets of the Borrowers and all related hedging
arrangements.

     THE RECITATION SET FORTH IN THE PRECEDING PARAGRAPH WILL BE DEEMED TO CONSTITUTE AN
ENFORCEABLE SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(A) OF THE BANKRUPTCY CODE.

EA-7

 

     In addition, the 20_-_ Exchange Noteholder, by accepting this 20_-_ Exchange Note, consents to
the Administrative Agent’s delegation under the HTD Administration Agreement to the Collateral
Agent Administrator of certain of the duties that the Administrative Agent is required to perform
on behalf of the Collateral Agent pursuant to the Credit and Security Agreement.

     The 20_-_ Exchange Noteholder, by accepting this 20_-_ Exchange Note, covenants and agrees
that for a period of one year and one day (or, if longer, any applicable preference period) after
payment in full of all obligations under the Credit and Security Agreement, the Exchange Note
Supplement, the Exchange Notes, the outstanding Certificates and the outstanding Securities (as
defined in the related Titling Company Agreement), it will not institute against the Titling
Companies or the Holding Companies, or join in any institution against the Titling Companies or the
Holding Companies of, any bankruptcy, reorganization, arrangement, insolvency or liquidation
proceedings, or other proceedings under any federal or State bankruptcy or similar law in
connection with any obligations relating to this 20_-_ Exchange Note, the Credit and Security
Agreement, the Exchange Note Supplement or any of the other 20_-_ Basic Documents.

     The Borrowers have entered into the Exchange Note Supplement and this 20_-_ Exchange Note is
issued with the intention that, for U.S. federal, State and local income, single business and
franchise tax purposes, this 20_-_ Exchange Note will qualify as indebtedness of the Borrowers.
The 20_-_ Exchange Noteholder, by its acceptance of this 20_-_ Exchange Note, will be deemed to
agree to treat this 20_-_ Exchange Note for U.S. federal, State and local income, single business
and franchise tax purposes as indebtedness of the Borrowers.

     Prior to the due presentment for registration of transfer of this 20_-_ Exchange Note, the
Borrowers and the Administrative Agent and any agent of the Borrowers or the Administrative Agent
may treat the Person in whose name this 20_-_ Exchange Note (as of the day of determination or as
of such other date as may be specified in the Exchange Note Supplement) is registered as the owner
hereof for all purposes, whether or not this 20_-_ Exchange Note be overdue, and, to the fullest
extent permitted by applicable law, none of the Borrowers, the Administrative Agent or any such
agent will be affected by notice to the contrary.

     The Credit and Security Agreement permits the amendment thereof (in any manner and for any
purpose) by the Borrowers, the Collateral Agent, the Lender and the Administrative Agent so long as
each Exchange Noteholder of an Outstanding Exchange Note has consented to such amendment. The
Credit and Security Agreement also permits the amendment thereof to amend or waive certain terms
and conditions set forth therein without the consent of the Noteholders; provided certain
conditions are satisfied. Any such consent by the 20_-_ Exchange Noteholder will be conclusive and
binding upon the 20_-_ Exchange Noteholder and upon all future holders of this 20_-_ Exchange Note
and of any 20_-_ Exchange Note issued upon the registration of transfer hereof or in exchange
hereof or in lieu hereof whether or not notation of such consent or waiver is made upon this 20_-_
Exchange Note.

     The term “Borrower”, as used in this 20_-_ Exchange Note, includes any successor to any of the
Borrowers under the Credit and Security Agreement.

EA-8

 

     This 20_-_ Exchange Note is issuable only in registered form as provided in the Credit and
Security Agreement and the Exchange Note Supplement, subject to certain limitations therein set
forth.

     This 20_-_ Exchange Note, the Credit and Security Agreement and the Exchange Note Supplement
will be governed by, and construed in accordance with the laws of the State of Delaware.

     No reference herein to the Credit and Security Agreement or the Exchange Note Supplement, and
no provision of this 20_-_ Exchange Note or of the Credit and Security Agreement will alter or
impair the obligation of the Borrowers, which is absolute and unconditional, to pay the principal
of and interest on this 20_-_ Exchange Note at the time, place and rate, and in the coin or
currency herein prescribed.

     Anything herein to the contrary notwithstanding, except as expressly provided in the 20_-_
Basic Documents, none of U.S. Bank National Association, in its individual capacity or HTD Leasing
LLC, in its individual capacity, or any of their respective affiliates, partners, beneficiaries,
agents, officers, directors, employees or successors or assigns will be personally liable for, nor
will recourse be had to any of them for, the payment of principal or of interest on this 20_-_
Exchange Note or performance of, or omission to perform, any of the covenants, obligations or
indemnifications contained in the Credit and Security Agreement or the Exchange Note Supplement.
The 20_-_ Exchange Noteholder, by its acceptance hereof, agrees that, except as expressly provided
in the 20_-_ Basic Documents, in the case of an Exchange Note Default under the Credit and Security
Agreement or the Exchange Note Supplement, the 20_-_ Exchange Noteholder will have no claim against
any of the foregoing for any deficiency, loss or claim therefrom; provided,
however, that nothing contained herein will be taken to prevent recourse to, and
enforcement against, the assets of the Borrowers for any and all liabilities, obligations and
undertakings contained in the Credit and Security Agreement, the Exchange Note Supplement or in
this 20_-_ Exchange Note.

EA-9

 

ASSIGNMENT

     Social Security or taxpayer I.D. or other identifying number of assignee.

 

     FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers without recourse unto
_____________________________

     (name and address of assignee)

the within 20_-_ Exchange Note and all rights thereunder, and hereby irrevocably constitutes and
appoints ________________, attorney, to transfer said 20_-_ Exchange Note on the books kept for
registration thereof, with full power of substitution in the premises.

Date:

_______________________

Signature Guaranteed:*

 

			
	*	 	Note: The signature to this assignment must correspond with
the name of the registered owner as it appears on the face of the within 20__-_
Exchange Note in every particular, without alteration, enlargement or any
change whatsoever.

EA-10

 

Appendix 1

20_-_ USAGE AND DEFINITIONS

Usage

     The following rules of construction and usage apply to this Appendix, any agreement that
incorporates this Appendix and any document made or delivered pursuant to any such agreement:

     (a) The term “documents” includes any and all documents, agreements, instruments,
certificates, notices, reports, statements or other writings however evidenced, whether in
electronic or physical form.

     (b) Accounting terms not defined or not completely defined in this Appendix will be construed
in conformity with U.S. generally accepted accounting principles as in effect on the date of the
document that incorporates this Appendix.

     (c) References to “Article,” “Section,” “Exhibit,” “Schedule” or another subdivision of or to
an attachment are, unless otherwise specified, to an article, section, exhibit, schedule or
subdivision of or an attachment to the document in which such reference appears.

     (d) Any document defined or referred to in this Appendix or in any document that incorporates
this Appendix means such document as from time to time amended, modified, supplemented or replaced,
including by waiver or consent, and includes all attachments to and instruments incorporated in
such document.

     (e) Any statute defined or referred to in this Appendix or in any document that incorporates
this Appendix means such statute as from time to time amended, modified, supplemented or replaced,
including by succession of comparable successor statutes, and includes any rules and regulations
promulgated under such statute and any judicial and administrative interpretations of such statute.

     (f) Calculation of any amount on or as of any date will be determined at or as of the close of
business on such day after the application of any monies, payments and other transactions to be
applied on such day, except that calculations as of the Cutoff Date will be determined as of the
open of business on such day prior to the application of any monies, payments and other
transactions to be applied on such day. References to deposits, transfers and payments of any
amounts refers to deposits, transfers or payments of such amounts in immediately available funds.

     (g) In the computation of periods of time from a specified date to a later specified date, the
word “from” means “from and including,” the word “to” means “to but excluding” and the word
“through” means “to and including.”

     (h) All terms defined in this Appendix apply to the singular and plural forms of such terms
and the term “including” means “including without limitation.”

     (i) References to a Person are also to its permitted successors and assigns.

A1-1 

 

     (j) Except where “not less than zero” or similar language is indicated, amounts determined by
reference to a mathematical formula may be positive or negative.

Definitions

     “20_-_ Basic Documents” means:

	 	(a)	 	the Basic Documents;
	 
	 	(b)	 	the Servicing Supplement;
	 
	 	(c)	 	the Exchange Note Supplement;
	 
	 	(d)	 	the Control Agreements;
	 
	 	(e)	 	the First-Tier Sale Agreement;
	 
	 	(f)	 	the Indenture;
	 
	 	(g)	 	the Underwriting Agreement;
	 
	 	(h)	 	the Second-Tier Sale Agreement;
	 
	 	(i)	 	the DTC Letter;
	 
	 	(j)	 	the Depositor LLC Agreement;
	 
	 	(k)	 	the Intercreditor Agreement;
	 
	 	(l)	 	the 20_-_ Joinder Agreements;
	 
	 	(m)	 	the Administration Agreement;
	 
	 	(n)	 	the Trust Agreement._________, 20__; and
	 
	 	(o)	 	[the Interest Rate Hedge.]

     “20_-_ Closing Date” means ______, 20_.

     “20_-_ Collateral” means (a) the Trust Property, (b) the Issuer’s rights under the
20_-_ Basic Documents, (c) all present and future claims, demands, causes of action and choses in
action in respect of the foregoing, (d) all payments on or under and all proceeds of the foregoing,
(e) all rights, powers and options (but none of the obligations) of the Issuer as Holder of the
20_-_ Exchange Note, including the right of the Issuer to receive payments with respect to the
20_-_ Exchange Note and (f) all other rights, powers and options (but none of the obligations) of
the Issuer under the foregoing, including the immediate and continuing right to claim for, collect,
receive and give receipt for principal and interest payments in respect of the foregoing and all
other monies payable under the foregoing, to give and receive notices and other communications, to
make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the

A1-2 

 

name of the Issuer or otherwise, and generally to do and receive anything that the Issuer is
or may be entitled to do or receive under the foregoing or with respect to the foregoing; but
excluding, the Trust Distribution Account (if established) and all funds deposited in the Trust
Distribution Account, if any.

     “20_-_ Collections” means, for all Leases and Leased Vehicles and a Collection Period,
the sum of the following amounts for such Collection Period, without duplication:

	 	(a)	 	Active Lease Proceeds; minus
	 
	 	(b)	 	Payaheads; plus
	 
	 	(c)	 	Payahead Draws; plus
	 
	 	(d)	 	Active Lease Advances; minus
	 
	 	(e)	 	Advance Reimbursement Amounts; plus
	 
	 	(f)	 	Administrative Reallocation Amounts; plus
	 
	 	(g)	 	Terminating Lease Proceeds; plus
	 
	 	(h)	 	Closed Lease Proceeds; plus
	 
	 	(i)	 	Payment Extension Fees.

     “20_-_ Exchange Note” means the note, substantially in the form set forth in Exhibit A
to the Exchange Note Supplement, executed and authenticated in accordance with the Credit and
Security Agreement and under the Exchange Note Supplement.

     “20_-_ Exchange Noteholder” means Ford Credit or any endorsee of the 20_-_ Exchange
Note.

     “20_-_ Joinder Agreements” means, collectively, (a) the Joinder Agreement, dated as of
_______, 20__, between Ford Credit, as Existing Party, and the Depositor, as new interest holder,
(b) the Joinder Agreement, dated as of _______, 20__, between the Depositor, as existing party, and
the Issuer, as new interest holder and (c) the Joinder Agreement, dated as of _______, 20__,
between the Issuer, as existing party, and the Indenture Trustee, as new interest holder.

     “20_-_ Reference Pool” means the Collateral Leases and Collateral Leased Vehicles
listed on Schedule A to the Exchange Note Supplement.`

     “20_-_ Secured Parties” means the Noteholders [and the Hedge Counterparty].

     “20_-_ Shared Amounts” means Shared Amounts allocated to the 20_-_ Exchange Noteholder
pursuant to Section 5.1 or 5.2 of the Exchange Note Supplement.

     “Active Lease” means any Collateral Lease before the Collection Period that includes
its Termination Date.

A1-3 

 

     “Active Lease Advance” means, for any Active Lease other than an Advance Payment Plan
Lease and any Collection Period, an advance by the Servicer in an amount (not less than zero) equal
to (i) the scheduled Base Payment minus (ii) the sum of (A) Active Lease Proceeds,
plus (B) the Payahead Draw, in each case, for such Lease and such Collection Period.

     “Active Lease Proceeds” means, for any Active Lease and any Collection Period, an
amount equal to:

	 	(a)	 	all amounts Posted; minus
	 
	 	(b)	 	Local Fees and Taxes; minus
	 
	 	(c)	 	Additional Amounts; minus
	 
	 	(d)	 	the sum of (i) any amounts expended by the Servicer that are charged to the
account of the related Lessee in accordance with the Credit and Collection Policy
(including collection expenses), plus (ii) all amounts paid to third parties in
connection with the repossession, transportation, reconditioning and disposition of the
related Leased Vehicle plus (iii) any amounts that are required to be refunded
to the Lessee pursuant to such Lease, Applicable Law or the Credit and Collection
Policy.

     “Act of Noteholders” has the meaning specified in Section 11.3(a) of the Indenture.

     “Additional Amounts” means, for any Lease and any Collection Period, amounts due from
the related Lessee in such Collection Period, including:

	 	(a)	 	any late fees, returned check fees and any other administrative fees or similar
charges allowed by Applicable Law; and
	 
	 	(b)	 	amounts required to reimburse the Servicer for payment of the related Lessee’s
parking tickets, other fines imposed by Governmental Authorities and any other amounts
required to be paid by the Lessee that are paid by the Servicer.

     However, “Additional Amounts,” for any Lease, will not include Total Payments, Payment
Extension Fees, Excess Wear and Use, Excess Mileage and amounts required to be paid by the Lessee
in accordance with the terms of the Lease in connection with an early termination of the Lease.

     “Administration Agreement” means the Administration Agreement, dated as of _______,
20__, among Ford Credit, as Indenture Administrator, the Issuer and the Indenture Trustee.

     “Administration Fee” means, for any Collection Period, an amount equal to the sum of
(a) the product of (i) one-twelfth of 0.01%, times (ii) the Note Balance determined as of
the later of (A) the last day of the preceding Collection Period and (B) the most recent Cutoff
Date in such Collection Period, plus (b) the portion of the Administration Fee for the
immediately preceding Collection Period, if any, that was not paid on the related Payment Date.

A1-4 

 

     “Administrative Reallocation” means the purchase by the Servicer of a Lease and
related Leased Vehicle, pursuant to Section 3.5(a) of the Servicing Supplement.

     “Administrative Reallocation Amount” means, for any Administrative Reallocation and
any Collection Period, an amount equal to the sum, for the related Lease and Leased Vehicle, of:

	 	(a)	 	the Securitization Value of such Lease for the Collection Period before the
Collection Period in which the Lease becomes a Terminating Lease; plus
	 
	 	(b)	 	the Advance Balance for the Collection Period preceding the Collection Period
that includes the Termination Date; minus
	 
	 	(c)	 	the Payahead Balance as of the beginning of such Collection Period;
minus
	 
	 	(d)	 	the sum of any Terminating Lease Proceeds and Closed Lease Proceeds through the
end of the preceding Collection Period.

     “Advance Balance” means, for any Lease:

	 	(a)	 	as of the most recent Cutoff Date, the Cutoff Date Delinquency Amount; and
	 
	 	(b)	 	for any Collection Period, the sum of:

	 	(i)	 	the Advance Balance for the prior Collection Period (or, for
any Collection Period beginning on a Cutoff Date, as of such Cutoff Date);
plus
	 
	 	(ii)	 	any Active Lease Advance for the current Collection Period;
minus
	 
	 	(iii)	 	any Advance Reimbursement Amount for the current Collection
Period.

     “Advance Payment Plan Lease” means any Lease that was paid in full at the time it was
originated.

     “Advance Reimbursement Amount” has the meaning specified in Section 4.3(b) of the
Servicing Supplement.

     “ALG MTM Residual Value” means, with respect to any Lease, the expected value of the
related Leased Vehicle at the related Scheduled Lease End Date, calculated using residual factors
supplied by Automotive Lease Guide after the beginning of the Lease.

     “Authenticating Agent” has the meaning specified in Section 2.12(a) of the Indenture.

     “Bank Accounts” has the meaning specified in Section 4.1(a) of the Servicing
Supplement.

     “Base Residual Value” means, with respect to any Lease, the lower of (a) the Contract
Residual Value of such Lease and (b)(i) the ALG Residual Value of the related Leased Vehicle or
(ii) if the Servicer does not have the ALG Residual Value for the related Leased Vehicle, the
oldest ALG MTM Residual Value that the Servicer has for the related Leased Vehicle.

A1-5 

 

     “Book-Entry Note” means a beneficial interest in any of the Notes issued in book-entry
form as described in Section 2.10 of the Indenture, which will initially include the Class A-1
Notes, the Class A-2 Notes, the Class A-3 Notes, the Class A-4 Notes and the Class B Notes.

     “Capital Account” has the meaning specified in Section 3.3(a) of the Trust Agreement.

     [“Calculation Agent” has the meaning specified in Section 3.19 of the Indenture.]

     “Certificate of Trust” means the Certificate of Trust of Ford Credit Auto Lease Trust
20_-.

     “Class” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes, the Class
A-4 Notes, the Class B Notes, the Class C Notes and the Class D Notes.

     “Class A Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes
and the Class A-4 Notes.

     “Class A-1 Notes” means the $[______] Class A-1 Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.

     “Class A-2 Notes” means the Class A-2a Notes [and the Class A-2b Notes,
collectively.]

     “Class A-2a Notes” means the $[______] Class A-2a Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.

     [“Class A-2b Interest Rate Hedge” means the swap transaction entered into between the
Issuer as Party B, and the Class A-2b Hedge Counterparty, as Party A, pursuant to the ISDA Master
Agreement, the related schedule thereto and the confirmation, each dated as of ______, 20__
together with any additional or replacement swap entered into by the Issuer on or after the Closing
Date, in respect of the Class A-2b Notes.]

     [“Class A-2b Notes” means the $[______] Class A-2b Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.]

     “Class A-3 Notes” means the Class A-3a Notes [and the Class A-3b Notes,
collectively.]

     “Class A-3a Notes” means the $[______] Class A-3a Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.

     [“Class A-3b Interest Rate Hedge” means the swap transaction entered into between the
Issuer as Party B, and the Class A-3b Hedge Counterparty, as Party A, pursuant to the ISDA Master
Agreement, the related schedule thereto and the confirmation, each dated as of ______, 20__
together with any additional or replacement swap entered into by the Issuer on or after the Closing
Date, in respect of the Class A-3b Notes.]

A1-6 

 

     [“Class A-3b Notes” means the $[______] Class A-3b Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.]

     “Class A-4 Notes” means the Class A-4a Notes [and the Class A-4b Notes,
collectively.]

     “Class A-4a Notes” means the $[______] Class A-4a Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.

     [“Class A-4b Interest Rate Hedge” means the swap transaction entered into between the
Issuer as Party B, and the Class A-4b Hedge Counterparty, as Party A, pursuant to the ISDA Master
Agreement, the related schedule thereto and the confirmation, each dated as of ______, 20__
together with any additional or replacement swap entered into by the Issuer on or after the Closing
Date, in respect of the Class A-4b Notes.]

     [“Class A-4b Notes” means the $[______] Class A-4b Notes issued by the Issuer,
substantially in the form of Exhibit A to the Indenture.]

     “Class B Notes” means the $[______] Class B Notes issued by the Issuer, substantially
in the form of Exhibit A to the Indenture.

     “Class C Notes” means the $[______] Class C Notes issued by the Issuer, substantially
in the form of Exhibit A to the Indenture.

     “Class D Notes” means the $[______] Class D Notes issued by the Issuer, substantially
in the form of Exhibit A to the Indenture.

     “Clearing Agency” means an organization registered as a “clearing agency” pursuant to
Section 17A of the Exchange Act.

     “Closed Date” means, for any Lease, the earliest of the date:

	 	(a)	 	on which the Lease is marked as paid in full (meaning that the related Lessee
owes no further amounts) or closed in the Servicer’s receivable system (including where
the Lease is charged off by the Servicer in accordance with the Credit and Collection
Policy);
	 
	 	(b)	 	on which an Administrative Reallocation occurs for such Lease; and
	 
	 	(c)	 	that is the first day of the fifth month after the month that includes its
Termination Date.

     “Closed Lease” means any Lease after the Collection Period that includes its Closed
Date.

     “Closed Lease Proceeds” means, for any Closed Lease and any Collection Period, an
amount equal to:

	 	(a)	 	all amounts Posted; minus

A1-7 

 

	 	(b)	 	Local Fees and Taxes; minus
	 
	 	(c)	 	Additional Amounts; minus
	 
	 	(d)	 	the sum of (i) any amounts expended by the Servicer that are charged to the
account of the related Lessee in accordance with the Credit and Collection Policy
(including collection expenses), plus (ii) all amounts paid to third parties in
connection with the repossession, transportation, reconditioning and disposition of the
related Leased Vehicle plus (iii) any amounts that are required to be refunded
to the Lessee pursuant to such Lease, Applicable Law or the Credit and Collection
Policy.

     “Collateral Account” has the meaning specified in Section 2.1 of the Collateral
Account Control Agreement or Section 2.1 of the Titling Company Control Agreement, as applicable.

     “Collateral Account Control Agreement” means the Collateral Account Control Agreement,
dated as of _______, 20__, among the Issuer, the Indenture Trustee and The Bank of New York Mellon,
in its capacity as a securities intermediary.

     “Collection Account” means the account or accounts established and maintained pursuant
to Section 4.1(a)(ii) of the Servicing Supplement.

     “Collection Period” means each calendar month, commencing with the Cutoff Date. For
any Payment Date or for purposes of determining the Note Balance, Exchange Note Balance or Pool
Balance, the related Collection Period means the Collection Period preceding (a) such Payment Date
or (b) the month in which the Note Balance, Exchange Note Balance or Pool Balance is determined.

     “Control Agreements” means, collectively, the Collateral Account Control Agreement and
the Titling Company Control Agreement.

     “Controlling Class” means (a) the Outstanding Class A Notes, (b) if no Class A Notes
are Outstanding, the Outstanding Class B Notes; (c) if no Class A or Class B Notes are Outstanding,
the Outstanding Class C Notes; and (d) if no Class A Notes, Class B Notes or Class C Notes are
Outstanding, the Outstanding Class D Notes.

     “Corporate Trust Office” means,

	 	(a)	 	with respect to the Owner Trustee:

Corporate Trust Services

300 Delaware Avenue, 9th Floor

Wilmington, Delaware 19801

Telephone: (302) 576-3704

Fax: (302) 576-3717

or at such other address in the State of Delaware as the Owner Trustee may designate by
notice to the Indenture Trustee, the Indenture Administrator and the Depositor, and

A1-8 

 

	 	(b)	 	with respect to the Indenture Trustee:

101 Barclay Street

Floor 4 West

New York, New York 10286

Attention: Structured Finance Services — Asset Backed Securities

Ford Credit Auto Lease Trust 20_-_

Telephone: (212) 815-4389

Fax: (212) 815-2493

or at such other address as the Indenture Trustee may designate by notice to the Owner
Trustee and the Indenture Administrator.

     “Cutoff Date” means, for the 20_-_ Reference Pool, _______, 20_.

     “Cutoff Date Delinquency Amount” means, for any Lease other than an Advance Payment
Plan Lease, the portion of the scheduled Base Payment that is due on or before the Cutoff Date and
that has not been Posted on or before the Cutoff Date.

     “Cutoff Date Payahead Amount” means, for any Lease other than an Advance Payment Plan
Lease, an amount (not less than zero) equal to the aggregate Base Payments Posted minus the
aggregate scheduled Base Payments, in each case on or before the Cutoff Date.

     “Default” means any occurrence that with notice or the lapse of time or both would
become an Event of Default.

     “Definitive Notes” has the meaning specified in Section 2.11 of the Indenture.

     “Delaware Statutory Trust Act” means Chapter 38 of Title 12 of the Delaware Code.

     “Depositor” means Ford Credit Auto Lease Two LLC, a Delaware limited liability
company.

     “Depositor LLC Agreement” means the Amended and Restated Limited Liability Company
Agreement of the Depositor, dated as of December 18, 2006, by Ford Credit, as member of the
Depositor.

     “DTC Letter” means the letter of representations for the Notes, dated _______, 20__,
between the Issuer and The Depository Trust Company.

     “Eligible State” means, for any Titling Company, any State in which such Titling
Company is, if and to the extent required by Applicable Law, qualified, authorized and licensed to
hold title or other evidence of the interest in Leased Vehicles.

     “Event of Default” has the meaning specified in Section 5.1(a) of the Indenture.

     “Exchange Act” means the Securities Exchange Act of 1934, as amended.

A1-9 

 

     “Exchange Note Balance” means the Exchange Note Initial Principal Balance, as reduced
by all amounts distributed on the 20_-_ Exchange Note pursuant to Section 5.1 of the Exchange Note
Supplement and allocable to principal.

     “Exchange Note Collection Account” means the account designated as such pursuant to
Section 4.1(a)(i) of the Servicing Supplement.

     “Exchange Note Final Scheduled Payment Date” means ________ __, 20_.

     “Exchange Note Initial Principal Balance” means $[________], which is approximately
[____]% of the initial Pool Balance.

     “Exchange Note Interest Payment Amount” has the meaning specified in Section 2.4 of
the Exchange Note Supplement.

     “Exchange Note Interest Period” means, for the 20_-_ Exchange Note:

	 	(i)	 	in the case of the first Payment Date, the period from and including the
Exchange Note Issuance Date to but excluding such Payment Date; and
	 
	 	(ii)	 	in the case of all other Payment Dates, the period from and including the
preceding Payment Date to but excluding such Payment Date;

	 	 	provided, that the Exchange Note Interest Period will be calculated on the basis of
a 360-day year consisting of twelve 30-day months.

     “Exchange Note Interest Rate” means a rate per annum equal to [__]%.

     “Exchange Note Issuance Date” means _______, 20_.

     “Exchange Note Principal Payment Amount” has the meaning specified in Section 2.5 of
the Exchange Note Supplement.

     “Exchange Note Purchase Date” means, for the purchase of the 20_-_ Exchange Note
pursuant to Section 5.1 of the Servicing Supplement, the Payment Date specified by the Servicer
pursuant to such Section 5.1.

     “Exchange Note Purchase Price” means an amount equal to the sum of:

	 	(a)	 	the Exchange Note Balance as of the Exchange Note Purchase Date; plus
	 
	 	(b)	 	the Exchange Note Interest Payment Amount payable on the Payment Date on which
the purchase occurs.

     “Exchange Note Supplement” means the Exchange Note Supplement to the Credit and
Security Agreement, dated as of _______, 20__, among CAB East LLC and CAB West LLC, as Borrowers,
U.S. Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and as
Servicer.

A1-10 

 

     “Final Scheduled Payment Date” means, for each Class, the Payment Date specified
below:

	 	 	 
	Class	 	Final Scheduled Payment Date
	Class A-1

	 	_______, 20__
	Class A-2a

	 	_______, 20__
	[Class A-2b

	 	_______, 20__]
	Class A-3a

	 	_______, 20__
	[Class A-3b

	 	_______, 20__]
	Class A-4a

	 	_______, 20__
	[Class A-4b

	 	_______, 20__]
	Class B

	 	_______, 20__
	Class C

	 	_______, 20__
	Class D

	 	_______, 20__

     “Financial Institution” has the meaning specified in the introductory paragraph of the
Collateral Account Control Agreement or the introductory paragraph of the Titling Company Control
Agreement, as applicable.

     “First Priority Principal Payment” means, for a Payment Date, the greater of:

	 	(a)	 	an amount (not less than zero) equal to the Note Balance of the Class A Notes
as of the preceding Payment Date (or the 20_-_ Closing Date, with respect to the first
Payment Date) minus the total Securitization Value as of the first day of the
Collection Period that includes the Payment Date, and
	 
	 	(b)	 	on and after the Final Scheduled Payment Date of any Class A Notes, the Note
Balance of such Class A Notes.

     “First-Tier Assets” means all right, title and interest of Ford Credit, whether owned
as of the Cutoff Date or thereafter acquired, in, to and under the 20_-_ Exchange Note and all of
Ford Credit’s rights under the 20_-_ Basic Documents, including all monies paid thereon and all
monies due thereon on or after the Cutoff Date.

     “First-Tier Sale Agreement” means the First-Tier Sale Agreement, dated as of _______,
20__, between Ford Credit, as seller, and the Depositor, as purchaser.

     [“Floating Rate Notes” means the Class A-2b Notes, Class A-3b Notes and the Class A-4b
Notes.]

     “Grant” or “Granted” means to mortgage, pledge, assign and grant a lien upon
and a security interest in the relevant property.

     “Grantor” has the meaning specified in the introductory paragraph of the Collateral
Account Control Agreement or the introductory paragraph of the Titling Company Control Agreement,
as applicable.

     [“Hedge Counterparty” means, collectively, each Party A under the respective Interest
Rate Hedges.

A1-11 

 

     “Hedge Counterparty Collateral Account” means the account designated as such pursuant
to Section 4.1(a)(v) of the Servicing Supplement.

     “Hedge Termination Payments” means Senior Hedge Termination Payments and Subordinated
Hedge Termination Payments.

     “Hedge Termination Receipt” means any hedge termination payment payable by a Hedge
Counterparty to the Issuer.]

     “Indemnified Person” as used in the Indenture, has the meaning specified in Section
6.7(c) of the Indenture; as used in the Servicing Supplement, has the meaning specified in Section
3.4 of the Servicing Supplement; as used in the Trust Agreement, has the meaning specified in
Section 7.2(b) of the Trust Agreement.

     “Indenture” means the Indenture, dated as of _______, 20__, between the Issuer and the
Indenture Trustee.

     “Indenture Administrator” means Ford Credit, in its capacity as Indenture
Administrator under the Administration Agreement.

     “Indenture Trustee” means The Bank of New York Mellon, a New York banking corporation,
not in its individual capacity but solely as Indenture Trustee under the Indenture.

     “Independent” means that the relevant Person (a) is independent of the Issuer, the
Depositor and their Affiliates, (b) does not have any direct financial interest or any material
indirect financial interest in the Issuer, the Depositor or their Affiliates, and (c) is not an
officer, employee, promoter, underwriter, trustee, partner, director or person performing similar
functions of or for the Issuer, the Depositor or their Affiliates.

     “Interest Payment Amount” means, with respect to any Note on any Payment Date, the sum
of:

	 	(a)	 	the portion of the Interest Payment Amount for the immediately preceding
Payment Date that was not paid on such date; plus
	 
	 	(b)	 	the product of (i) the Note Balance as of the first day of such Interest
Period, times (ii) the Note Interest Rate, times (iii) (A) for the
Class A-1 Notes [and the Floating Rate Notes], (I) the numerator of which is the actual
number of days in the related Interest Period (or in the case of the first Payment
Date, [__]) and (II) the denominator of which is 360 or (B) for all other classes of
Notes, (I) the numerator of which is 30 (or in the case of the first Payment Date, __)
and (II) the denominator of which is 360.

     “Interest Period” means, for the Notes:

	 	(a)	 	in the case of the first Payment Date, the period from and including the 20_-_
Closing Date to but excluding such Payment Date; and

A1-12 

 

	 	(b)	 	in the case of all other Payment Dates, the period from and including the
preceding Payment Date to but excluding such Payment Date.

     [“Interest Rate Hedge” means the Class A-2b Interest Rate Hedge, the Class A-3b
Interest Rate Hedge and the Class A-4b Interest Rate Hedge.]

     “Investor Rate” means [___]%.

     “Issuer” means Ford Credit Auto Lease Trust 20_-_, a Delaware statutory trust.

     “Issuer Order” and “Issuer Request” have the meanings specified in Section
11.1(a) of the Indenture.

     “Lease” means a Lease identified as a “20_-_ Lease” in the Schedule of Collateral
Leases attached as Schedule A to the Exchange Note Supplement and included in the 20_-_ Reference
Pool, excluding any Lease for which the Administrative Reallocation Amount has been paid by the
Servicer pursuant to Section 3.5(a) of the Servicing Supplement.

     “Lease File” means, for each Lease, the Collateral Lease File applicable to such
Lease.

     “Leased Vehicle” means the leased vehicle relating to a Lease.

     [“LIBOR” means, with respect to any Interest Period, the following rate, as determined
by the Calculation Agent:

	 	(i)	 	the rate for U.S. dollar deposits for a period of one month which appears on
the Reuters Screen LIBOR 01 Page (or any replacement page) as of 11:00 a.m., London
time, on the LIBOR Determination Date; and
	 
	 	(ii)	 	if such rate does not appear on the Reuters Screen LIBOR01 Page, the rate
determined on the basis of the rates at which deposits in U.S. Dollars are offered by
the LIBOR Reference Banks at approximately 11:00 a.m., London time, on the LIBOR
Determination Date to prime banks in the London interbank market for a period of one
month commencing on such LIBOR Determination Date and in a principal amount of at least
U.S.$1,000,000. The Calculation Agent will request the principal London office of each
of the LIBOR Reference Banks to provide a quotation of its rate. If at least two such
quotations are provided, the rate will be the arithmetic mean of the quotations. If
fewer than two quotations are provided, the rate will be the arithmetic mean of the
rates quoted by three major banks in New York City, selected by the Calculation Agent,
at approximately 11:00 a.m., New York City time, on that LIBOR Determination Date for
loans in U.S. Dollars to leading European banks for a period of one month commencing on
the LIBOR Determination Date and in a principal amount of at least U.S.$1,000,000;
provided, however, that if the banks selected by the Calculation Agent
are not quoting rates as mentioned in this sentence, LIBOR for such Interest Period
will be the same as LIBOR for the immediately preceding Interest Period.

A1-13 

 

     “LIBOR Determination Date” means the date that is two London Banking Days prior to the
first day of the applicable Interest Period.

     “LIBOR Reference Banks” means four major banks in the London interbank market selected
by the Calculation Agent.

     “London Banking Day” means any day on which commercial banks are open for general
business (including dealings in foreign exchange and foreign currency deposits) in London.]

     “Local Fees and Taxes” means, for any Lease, the sum of the amounts set forth in such
Lease that are to be applied to pay any sales and use and/or monthly rental receipts tax and to
offset personal property and ad valorem taxes and other administrative costs.

     “Monthly Investor Report” has the meaning specified in Section 6.1 of the Servicing
Supplement.

     “Monthly Remittance Required Ratings” has the meaning specified in Section 4.2(a) of
the Servicing Supplement.

     [“Net Hedge Payment” means, for any Payment Date, the net amount, if any, payable by
the Issuer to a Hedge Counterparty on such Payment Date, excluding any Hedge Termination Payments
and any Hedge Termination Receipts.

     “Net Hedge Receipt” means, for any Payment Date, the net amount, if any, payable by a
Hedge Counterparty to the Issuer on such Payment Date, excluding any Hedge Termination Payments and
any Hedge Termination Receipts.]

     “Non-Permitted Noteholder” has the meaning set forth in Section 2.14 of the Indenture.

     “Note Balance” means, for a Note or Class, the initial aggregate principal amount of
such Note or Class minus all amounts distributed on such Note or Class that is allocable to
principal.

     “Note Interest Rate” means, for each Class, the interest rate per annum specified
below:

	 	 	 	 	 
	Class	 	Note Interest Rate
	Class A-1%
	 	 	 	 
	Class A-2a
	 	 	%	 
	[Class A-2b
	 	 	%]	 
	Class A-3a
	 	 	%	 
	[Class A-3b
	 	 	%]	 
	Class A-4a
	 	 	%	 
	[Class A-4b
	 	 	%]	 
	Class B
	 	 	%	 
	Class C
	 	 	%	 
	Class D
	 	 	%	 

     “Note Owner” means, for a Book-Entry Note, the Person who is the beneficial owner of a
Book-Entry Note as reflected on the books of the Clearing Agency or on the books of a Person

A1-14 

 

maintaining an account with such Clearing Agency (as a direct participant or as an indirect
participant, in each case in accordance with the rules of such Clearing Agency).

     “Note Paying Agent” means the Indenture Trustee or any other Person that meets the
eligibility standards for the Indenture Trustee specified in Section 6.11 of the Indenture and is
authorized by the Issuer to make payments to and distributions from the Collection Account,
including payments of principal of or interest on the Notes on behalf of the Issuer.

     "Note Redemption Price” means an amount equal to the sum of:

	 	(a)	 	the Note Balance as of the Redemption Date; plus
	 
	 	(b)	 	the Interest Payment Amount payable on the Payment Date on which the redemption
occurs.

     “Note Register” and “Note Registrar” have the meanings specified in Section
2.4(a) of the Indenture.

     “Noteholder” means, as of any date, the Person in whose name a Note is registered on
the Note Register on the applicable Record Date.

     “Notes” means, together, the Class A Notes, the Class B Notes, the Class C Notes and
the Class D Notes.

     “Note Transfer” has the meaning set forth in Section 2.4(i) of the Indenture.

     “Officer’s Certificate” means (a) for the Issuer or Owner Trustee, a certificate
signed by a Responsible Person of the Issuer or Owner Trustee and (b) for the Depositor, the
Indenture Administrator or the Servicer, a certificate signed by any officer of the Depositor, the
Indenture Administrator or the Servicer, as applicable.

     “Opinion of Counsel” means a written opinion of counsel which counsel is reasonably
acceptable to the Indenture Trustee, the Owner Trustee and the Rating Agencies, as applicable.

     “Other Assets” means any assets or interests in any assets (other than the Trust
Property) conveyed or purported to be conveyed by the Depositor to any Person other than the
Issuer, whether by way of a sale, capital contribution, the Grant of a Lien or otherwise.

     “Outstanding” means, as of any date, all Notes authenticated and delivered under the
Indenture on or before such date except (a) Notes that have been cancelled by the Note Registrar or
delivered to the Note Registrar for cancellation, (b) Notes or portions of Notes to the extent an
amount necessary to pay all or a portion of such Notes has been deposited with the Indenture
Trustee or any Note Paying Agent in trust for the Noteholders of such Notes on or before such date;
provided that if such Notes are to be redeemed, notice of such redemption has been given
pursuant to the Indenture or provision for such notice has been made in a manner satisfactory to
the Indenture Trustee, and (c) Notes in exchange for or in lieu of which other Notes have been
authenticated and delivered pursuant to the Indenture unless proof satisfactory to the Indenture
Trustee is presented that any such Notes are held by a bona fide purchaser; provided that
in

A1-15 

 

determining (i) whether Noteholders evidencing the required Note Balance have given any
request, demand, authorization, direction, notice, consent or waiver under any 20_-_ Basic
Document, Notes owned by the Issuer, the Depositor, the Servicer or their Affiliates will be deemed
not to be Outstanding, and (ii) whether the Indenture Trustee is protected in relying on any such
request, demand, authorization, direction, notice, consent or waiver, only Notes that a Responsible
Person of the Indenture Trustee knows to be so owned will be deemed not to be Outstanding;
provided, however, that, notwithstanding the foregoing, Notes owned by the Issuer,
the Depositor, the Servicer or their Affiliates will be treated as Outstanding if (i) no other
Notes remain Outstanding or (ii) such Notes have been pledged in good faith and the pledgee
establishes to the satisfaction of the Indenture Trustee the pledgee’s right to act with respect to
such Notes and that the pledgee is not the Issuer, the Depositor, the Servicer or their Affiliate.

     “Owner Trustee” means U.S. Bank Trust National Association, a national banking
association, not in its individual capacity but solely as Owner Trustee under the Trust Agreement.

     “Payahead” means, for any Active Lease and any Collection Period, an amount (not less
than zero) equal to (i) the Active Lease Proceeds for such Collection Period minus (ii) the
sum of (A) the scheduled Base Payment for such Collection Period (or, for an Advance Payment Plan
Lease, zero) plus (B) the Advance Balance for the preceding Collection Period.

     "Payahead Balance” means, for any Lease:

	 	(a)	 	as of the Cutoff Date, the Cutoff Date Payahead Amount; and
	 
	 	(b)	 	for any Collection Period, the sum of:

	 	(i)	 	the Payahead Balance for the prior Collection Period (or, for
the first Collection Period, as of the Cutoff Date); plus
	 
	 	(ii)	 	the Payahead for the current Collection Period; minus
	 
	 	(iii)	 	the Payahead Draw for the current Collection Period.

     “Payahead Draw” means, for any Lease and any Collection Period, an amount equal to:

	 	(a)	 	in the case of a Collection Period prior to the Collection Period that includes
its Termination Date, the lesser of:

	 	(i)	 	an amount (not less than zero) equal to the scheduled Base
Payment (or, for an Advance Payment Plan Lease, zero) minus the Active
Lease Proceeds, each for such Lease and such Collection Period; and
	 
	 	(ii)	 	the Payahead Balance for such Lease for the prior Collection
Period (or, for the first Collection Period, as of the Cutoff Date); and

	 	(b)	 	in the case of a Collection Period that includes its Termination Date, the
Payahead Balance for such Lease for the prior Collection Period (or, for the first
Collection Period, as of the Cutoff Date).

A1-16 

 

     “Payment Date” means, for the 20_-_ Exchange Note and the Notes, the 15th day of each
calendar month, or, if such day is not a Business Day, the next Business Day, beginning November
15, 2010.

     “Payment Extension” means, for any Lease other than an Advance Payment Plan Lease, an
extension of the payment term thereof by the Servicer in accordance with the Credit and Collection
Policy by deferring the Total Payment due in one or more months and extending the term of such
Lease for an additional month for each month for which the Total Payment is deferred.

     “Payment Extension Fee” means, for any Lease other than an Advance Payment Plan Lease
and any Collection Period, the amount that is assessed to the related Lessee in accordance with the
Credit and Collection Policy in connection with a Payment Extension, whether or not such amount is
waived or is collected.

     “Pool Balance” means, as of any date, the sum of the Securitization Values of the
Leases.

     “Principal Payment Account” means the account designated as such pursuant to Section
4.1(a)(iii) of the Servicing Supplement.

     “Proceeding” means any suit in equity, action at law or other judicial or
administrative proceeding, or governmental investigation.

     “QIB” has the meaning specified in Section 2.4 of the Indenture.

     “Qualified Purchaser” has the meaning specified in Section 2.4 of the Indenture.

     “Rating Agency” means, as of any date, each nationally recognized statistical rating
organization that has been designated by the Depositor to provide a rating on the Notes and is then
rating the Notes and which, on the 20_-_ Closing Date, are [Moody’s and Standard & Poor’s].

     “Rating Agency Confirmation” means, for an action or request, that (a) [with respect
to Standard & Poor’s, such Rating Agency has notified the Depositor, the Servicer, the Owner
Trustee and the Indenture Trustee that such action or request will not result in a reduction or
withdrawal of its then current rating of the Notes] and (b) [with respect to Moody’s, (i) except as
provided in clause (ii), the Issuer has given ten days’ prior written notice to Moody’s and Moody’s
has not notified within such period the Depositor, the Servicer, the Owner Trustee and the
Indenture Trustee in writing that such action will result in a downgrade or withdrawal of the then
current rating on any of the Notes, and (ii) in the case of an action described in clause (vi) of
the definition of “Permitted Investments” or in connection with the remittance of amounts on the
related Payment Date pursuant to the Servicing Supplement, including Section 3.5 or 4.2 thereof,
Moody’s has notified the Depositor, the Servicer, the Owner Trustee and the Indenture Trustee in
writing that such action will not result in a reduction or withdrawal of its then current rating of
the Notes].

     “Recharacterized Class” has the meaning specified in Section 2.11(b) of the Trust
Agreement.

A1-17 

 

     “Record Date” means, for a Payment Date and a Book-Entry Note, the close of business
on the day before such Payment Date and, for a Payment Date and a Definitive Note, the last day of
the month preceding the month in which such Payment Date occurs.

     “Recoveries” means, for any Terminating Lease or Closed Lease and any Collection
Period, an amount equal to:

	 	(a)	 	all amounts Posted after the date on which the Lease is marked as closed in the
Servicer’s receivables system (including where the Lease is charged off by the Servicer
in accordance with the Credit and Collection Policy); minus
	 
	 	(b)	 	Local Fees and Taxes; minus
	 
	 	(c)	 	Additional Amounts; minus
	 
	 	(d)	 	the sum of i) any amounts expended by the Servicer that are charged to the
account of the related Lessee in accordance with the Credit and Collection Policy
(including collection expenses), plus (ii) all amounts paid to third parties in
connection with the repossession, transportation, reconditioning and disposition of the
related Leased Vehicle plus (iii) any amounts that are required to be refunded
to the Lessee pursuant to such Lease, Applicable Law or the Credit and Collection
Policy.

     “Redemption Date” means the Payment Date specified by the Servicer for a redemption of
the Notes pursuant to Section 10.1 of the Indenture.

     “Reference Pool Servicing Fee” has the meaning specified in Section 3.8(a)(i) of the
Servicing Supplement.

     “Registered Noteholder” means the Person in whose name a Note is registered on the
Note Register on the applicable Record Date.

     “Regular Principal Payment” means, for a Payment Date, the greater of:

	 	(a)	 	an amount (not less than zero) equal to:

	 	(i)	 	(A) the total Securitization Value as of the first day of the
related Collection Period, minus (B) the total Securitization Value as
of the first day of the Collection Period that includes the Payment Date,
plus
	 
	 	(ii)	 	any principal that was required to be paid in prior months but
that remain unpaid, minus
	 
	 	(iii)	 	the Priority Principal Payment; and

	 	(b)	 	on and after the Final Scheduled Payment Date of the Class B Notes, the Note
Balance of the Class B Notes.

A1-18 

 

     “Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as clarified and interpreted by the Securities and Exchange Commission
or its staff.

     “Required Reserve Amount” means, for any Payment Date, $[_______] (which is [__]% of
the initial Pool Balance)

     “Reserve Account” means the account or accounts established and maintained pursuant to
Section 4.1(a)(iv) of the Servicing Supplement.

     “Reserve Account Draw Amount” means, for a Payment Date, the lesser of:

     (a) an amount (not less than zero) equal to (i) the sum of all payments required to be made on
such Payment Date pursuant to Sections 5.1(a) through (d) of the Exchange Note Supplement (taking
into account for purposes of Section 5.1(d) the payments required to be made on such Payment Date
pursuant to Sections 8.2(b)(i) through (xii) of the Indenture) minus (ii) the 20_-_
Collections for such Payment Date, and

     (b) the amount in the Reserve Account minus any investment earnings.

     “Reserve Initial Deposit” means, for the Reserve Account, $[________] (which is
approximately ___% of the initial Pool Balance).

     “Residual Interest” means a beneficial ownership interest in the Issuer, as recorded
on the Trust Register.

     “Responsible Person” means:

	 	(a)	 	with respect to the Depositor, any “Authorized Officer”, as specified in
Section 4.18(a) of the Depositor LLC Agreement;
	 
	 	(b)	 	with respect to the Indenture Administrator, any “Responsible Person”
designated pursuant to Section 3.6 of the Administration Agreement;
	 
	 	(c)	 	with respect to the Issuer, any officer within the Corporate Trust Office of
the Owner Trustee, including any vice president, assistant vice president, secretary,
assistant secretary or any other officer of the Owner Trustee customarily performing
functions similar to those performed by any of the above designated officers and also,
with respect to a particular matter, any other officer to whom such matter is referred
because of such officer’s knowledge of and familiarity with the particular subject, and
for so long as the Administration Agreement is in effect, any Responsible Person of the
Indenture Administrator;
	 
	 	(d)	 	with respect to the Servicer, any “Responsible Person” designated pursuant to
Section 7.11 of the Servicing Supplement; and
	 
	 	(e)	 	with respect to the Indenture Trustee or the Owner Trustee, any officer within
the Corporate Trust Office of the Indenture Trustee or the Owner Trustee, as the case

A1-19 

 

	 	 	 	may be, including any vice president, assistant vice president, secretary, assistant
secretary or any other officer of the Indenture Trustee or the Owner Trustee, as the
case may be, customarily performing functions similar to those performed by any of
the above designated officers and also, with respect to a particular matter, any
other officer to whom such matter is referred because of such officer’s knowledge of
and familiarity with the particular subject and also means, with respect to the
Owner Trustee, for so long as the Administration Agreement is in effect, any
Responsible Person of the Indenture Administrator.

     [“Reuters Screen LIBOR 01 Page” means the display page currently so designated on the
Reuters Telerate Capital Markets Report (or such other page as may replace such page in that
service for the purpose of displaying comparable rates or prices).]

     “Rule 144A” means Rule 144A under the Securities Act, as in effect from time to time.

     “Rule 144A Information” has the meaning set forth in Section 2.4(l) of the Indenture.

     “Scheduled Lease End Date” means, for any Lease, the date set forth in such Lease as
the termination date, adjusted to take into account any Payment Extension through and including the
Cutoff Date.

     “Second Priority Principal Payment” means, for a Payment Date, the greater of:

	 	(a)	 	an amount (not less than zero) equal to the Note Balance of the Class B Notes
as of the preceding Payment Date (or the 20_-_ Closing Date, with respect to the first
Payment Date) minus the total Securitization Value as of the first day of the
Collection Period that includes the Payment Date, and
	 
	 	(b)	 	on and after the Final Scheduled Payment Date of any Class B Notes, the Note
Balance of such Class B Notes.

     “Second-Tier Assets” means all right, title and interest of the Depositor, whether
owned as of the Cutoff Date or thereafter acquired, in, to and under the 20_-_ Exchange Note and
all of the Depositor’s rights under the 20_-_ Basic Documents, including all monies paid thereon
and all monies due thereon on or after the Cutoff Date.

     “Second-Tier Sale Agreement” means the Second-Tier Sale Agreement, dated as of
_______, 20__, between the Depositor, as seller, and the Issuer, as purchaser.

     “Secured Party” has the meaning set forth in the introductory paragraph of the
Collateral Account Control Agreement or the introductory paragraph of the Titling Company Control
Agreement, as applicable.

     “Secured Party Order” has the meaning specified in Section 3.1 of the Collateral
Account Control Agreement and Section 3.1 of the Titling Company Control Agreement.

     “Securitization Value” means, for any:

A1-20 

 

	 	(a)	 	Active Lease and any Collection Period (or the Cutoff Date), the sum of the
present values of:

	 	(i)	 	(A) the scheduled Base Payments (determined as of the Cutoff
Date) remaining after the end of the Collection Period (or as of the Cutoff
Date) or (B) for an Advance Payment Plan Lease, zero; and
	 
	 	(ii)	 	the Base Residual Value of the related Leased Vehicle,

	 	 	in each case, computed using a discount rate equal to the higher of the Contract Rate and
the Investor Rate on the basis of a 360-day year of twelve 30-day months to the beginning of
such Collection Period (or the Cutoff Date) and assuming each amount is received at the end
of the Collection Period in which such amount is scheduled to be received and giving effect
to any Payment Extension made for such Lease on or before the Cutoff Date;

	 	(b)	 	Terminating Lease and any Collection Period, the Base Residual Value of the
related Leased Vehicle, provided, however, the Securitization Value of
any Terminating Lease will be reduced to zero in the Collection Period in which an
Administrative Reallocation occurs for such Lease or the related Leased Vehicle is
sold; and
	 
	 	(c)	 	Closed Lease and any Collection period, zero.

     [“Senior Hedge Termination Payment” means any termination payment payable by the
Issuer to a Hedge Counterparty other than a Subordinated Hedge Termination Payment.]

     “Servicing Supplement” means the supplement to the Servicing Agreement, dated as of
the _______, 20__, among Ford Credit, as Servicer for the Collateral Specified Interests and the
20_-_ Reference Pool and as lender, HTD, as Collateral Agent, and the Holding Companies, as Holders
of the Collateral Specified Interest Certificates.

     [“Subordinated Hedge Termination Payment” means any termination payment payable by the
Issuer to a Hedge Counterparty where the related termination results from either (a) an “event of
default” under the related Interest Rate Hedge where the Hedge Counterparty is the “defaulting
party,” or (b) a “termination event” (other than “illegality” or “tax event”) under the related
Interest Rate Hedge for which the Hedge Counterparty is the sole “affected party.”]

     “Similar Law” means any federal, state, local or non-U.S. law or regulation that is
substantially similar to Title I of ERISA or Section 4975 of the Code.

     “Terminating Lease” means any Lease from the beginning of the Collection Period that
includes its Termination Date through the end of the Collection Period that includes its Closed
Date.

     “Terminating Lease Proceeds” means, for any Terminating Lease and any Collection
Period, an amount equal to:

	 	(a)	 	all amounts Posted; minus

A1-21 

 

	 	(b)	 	Local Fees and Taxes; minus
	 
	 	(c)	 	Additional Amounts; minus
	 
	 	(d)	 	the sum of (i) any amounts expended by the Servicer that are charged to the
account of the related Lessee in accordance with the Credit and Collection Policy
(including collection expenses), plus (ii) all amounts paid to third parties in
connection with the repossession, transportation, reconditioning and disposition of the
related Leased Vehicle plus (iii) any amounts that are required to be refunded
to the Lessee pursuant to such Lease, Applicable Law or the Credit and Collection
Policy.

     "Termination Date” means, for any Lease, the earliest of:

	 	(a)	 	its Scheduled Lease End Date;
	 
	 	(b)	 	the date on which the related Leased Vehicle is either:

	 	(i)	 	in the possession of the Servicer or its agent or bailee; or
	 
	 	(iii)	 	purchased pursuant to the Lessee Purchase Option or Dealer
Purchase Option; and

	 	(c)	 	its Closed Date.

     “Third Priority Principal Payment” means, for a Payment Date, the greater of:

	 	(a)	 	an amount (not less than zero) equal to the Note Balance of the Class C Notes
as of the preceding Payment Date (or the 20_-_ Closing Date, with respect to the first
Payment Date) minus the total Securitization Value as of the first day of the
Collection Period that includes the Payment Date, and
	 
	 	(b)	 	on and after the Final Scheduled Payment Date of any Class C Notes, the Note
Balance of such Class C Notes.

     “Titling Company Control Agreement” means the Collateral Account Control Agreement,
dated as of _______, 20__, among Titling Companies, the Indenture Trustee and The Bank of New York
Mellon, in its capacity as a securities intermediary.

     “Titling Company Collateral Accounts” means the Exchange Note Collection Account and
the Reserve Account, including all rights, powers and options (but none of the obligations) of the
Titling Companies as holders of the Exchange Note Collection Account and the Reserve Account,
including the immediate and continuing right to claim for, collect, receive and give receipt for
all monies included in the Exchange Note Collection Account and the Reserve Account, to give and
receive notices and other communications, to make waivers or other agreements, to exercise all
rights and options, to bring Proceedings in the name of the Titling Companies or otherwise, and
generally to do and receive anything that any Titling Company is or may be entitled to do or
receive under the Exchange Note Collection Account and the Reserve Account or with respect to the
Exchange Note Collection Account and the Reserve Account.

A1-22 

 

     “Total Payment” means, for any Lease, a level amount set forth in the Lease and
payable monthly in advance by the related Lessee equal to the sum of the Base Payment plus
the Local Fees and Taxes.

     “Transfer” has the meaning specified in Section 2.4(k) of the Indenture.

     “Trust Accounts” means the Bank Accounts and the Trust Distribution Account (if
established).

     “Trust Agreement” means the Amended and Restated Trust Agreement, dated as of _______,
20__, between the Depositor and the Owner Trustee.

     “Trust Distribution Account” means the account that may be established and maintained
pursuant to Section 4.5 of the Servicing Supplement.

     “Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939.

     “Trust Property” means (a) the 20_-_ Exchange Note, including the rights of the Issuer
as Holder of the 20_-_ Exchange Note, (b) the Depositor’s rights under the First-Tier Sale
Agreement, (c) the Issuer’s rights in, to and under the 20_-_ Basic Documents, including its rights
as assignee of the Depositor under the Second-Tier Sale Agreement, (d) all security entitlements
relating to the Trust Accounts and the property deposited in or credited to any of the Trust
Accounts, (e) all present and future claims, demands, causes of action and choses in action in
respect of any of the foregoing, and (f) all payments on or under and all proceeds in respect of
any of the foregoing.

     “Trust Register” and “Trust Registrar” have the meanings specified in Section
3.2 of the Trust Agreement.

     “Underwriters” means the initial note purchasers pursuant to the Underwriting
Agreement.

     “Underwriting Agreement” means the Underwriting Agreement, dated as of ___________ __,
20__, among the Depositor, as seller, Ford Credit and the Underwriters.

     “Void Note Transfer” has the meaning set forth in Section 2.4(i) of the Indenture.

A1-23

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