Document:

EX-4.3

Exhibit 4.3

Volkswagen Auto Lease/Loan Underwritten Funding, LLC

Seller,

VW Credit, Inc.

Servicer

and

 

Trustee

on behalf of the Holders

FORM OF POOLING AND SERVICING AGREEMENT

Dated as of _______ __, 200_

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 200_-_

                    % Asset Backed Certificates, Class A

                    % Asset Backed Certificates, Class B

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page
	 	 	TABLE OF CONTENTS	 	 	 	 
	 
	 	 	 	 	 	 
	ARTICLE I DEFINITIONS	 	 	1	 
	Section 1.1
	 	Definitions	 	 	1	 
	Section 1.2
	 	Other Interpretative Provisions	 	 	19	 
	Section 1.3
	 	Calculations	 	 	20	 
	Section 1.4
	 	References	 	 	20	 
	Section 1.5
	 	Action by or Consent of Holders	 	 	20	 
	 
	ARTICLE II THE TRUST PROPERTY	 	 	20	 
	Section 2.1
	 	Conveyance of Trust Property	 	 	20	 
	Section 2.2
	 	Representations and Warranties as to Each Receivable	 	 	20	 
	Section 2.3
	 	Representations and Warranties as
to the Receivables in the Aggregate	 	 	23	 
	Section 2.4
	 	Repurchase upon Breach	 	 	24	 
	Section 2.5
	 	Custodian of Receivable Files	 	 	25	 
	 
	ARTICLE III ADMINISTRATION AND SERVICING OF TRUST PROPERTY	 	 	28	 
	Section 3.1
	 	Duties of Servicer	 	 	28	 
	Section 3.2
	 	Collection of Receivable Payments	 	 	29	 
	Section 3.3
	 	Realization upon Receivables	 	 	29	 
	Section 3.4
	 	Physical Damage Insurance	 	 	30	 
	Section 3.5
	 	Maintenance of Security Interests in Financed Vehicles	 	 	30	 
	Section 3.6
	 	Covenants of Servicer	 	 	31	 
	Section 3.7
	 	Purchase by Servicer upon Breach	 	 	31	 
	Section 3.8
	 	Servicing Compensation	 	 	32	 
	Section 3.9
	 	Servicer’s Report	 	 	32	 
	Section 3.10
	 	Annual Statement as to Compliance	 	 	33	 
	Section 3.11
	 	Annual Independent Certified Public Accountants’ Report	 	 	33	 
	Section 3.12
	 	Access to Certain Documentation and
Information Regarding Receivables	 	 	33	 
	Section 3.13
	 	Reports to the Commission	 	 	34	 
	Section 3.14
	 	Reports to the Rating Agency	 	 	34	 
	Section 3.15
	 	Servicer Expenses	 	 	34	 
	 
	ARTICLE IV DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO HOLDERS	 	 	34	 
	Section 4.1
	 	Establishment of Accounts	 	 	34	 
	Section 4.2
	 	Collections	 	 	35	 
	Section 4.3
	 	[RESERVED]	 	 	37	 

 

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 4.4
	 	Additional Deposits; Net Deposits	 	 	37	 
	Section 4.5
	 	Distributions	 	 	37	 
	Section 4.6
	 	Reserve Account	 	 	39	 
	Section 4.7
	 	Statements to Holders	 	 	41	 
	 
	ARTICLE V THE CERTIFICATES	 	 	42	 
	Section 5.1
	 	The Certificates	 	 	42	 
	Section 5.2
	 	Authentication of Certificates	 	 	43	 
	Section 5.3
	 	Registration of Transfer and Exchange of Certificates	 	 	43	 
	Section 5.4
	 	Mutilated, Destroyed, Lost or Stolen Certificates	 	 	44	 
	Section 5.5
	 	Persons Deemed Owners	 	 	44	 
	Section 5.6
	 	Access to List of Holders’ Names and Addresses	 	 	44	 
	Section 5.7
	 	Maintenance of Office or Agency	 	 	45	 
	Section 5.8
	 	Book Entry Certificates	 	 	45	 
	Section 5.9
	 	Notices to Clearing Agency	 	 	46	 
	Section 5.10
	 	Definitive Certificates	 	 	46	 
	 
	ARTICLE VI SELLER	 	 	47	 
	Section 6.1
	 	Representations and Warranties of Seller	 	 	47	 
	Section 6.2
	 	Merger or Consolidation of, or
Assumption of the Obligations of, Seller	 	 	48	 
	Section 6.3
	 	Limitation on Liability of Seller and Others	 	 	49	 
	 
	ARTICLE VII SERVICER	 	 	49	 
	Section 7.1
	 	Representations and Warranties of Servicer	 	 	49	 
	Section 7.2
	 	Indemnities of Servicer	 	 	51	 
	Section 7.3
	 	Merger or Consolidation of or
Assumption of the Obligations of Servicer	 	 	52	 
	Section 7.4
	 	Limitation on Liability of Servicer and Others	 	 	52	 
	Section 7.5
	 	VW Credit, Inc.	 	 	53	 
	Section 7.6
	 	Servicer May Own Certificates	 	 	53	 
	Section 7.7
	 	Existence	 	 	53	 
	 
	ARTICLE VIII SERVICING TERMINATION	 	 	53	 
	Section 8.1
	 	Servicer Termination Events	 	 	53	 
	Section 8.2
	 	Trustee to Act; Appointment of Successor Servicer	 	 	55	 
	Section 8.3
	 	Effect of Servicing Transfer	 	 	56	 
	Section 8.4
	 	Notification to Holders	 	 	57	 
	Section 8.5
	 	Waiver of Past Servicer Termination Events	 	 	57	 
	Section 8.6
	 	Transfer of Accounts	 	 	57	 

ii

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	 
	ARTICLE IX TRUSTEE	 	 	57	 
	Section 9.1
	 	Acceptance by Trustee	 	 	57	 
	Section 9.2
	 	Duties of Trustee	 	 	57	 
	Section 9.3
	 	Trustee’s Certificate	 	 	59	 
	Section 9.4
	 	Trustee’s Assignment of Purchased Receivables	 	 	59	 
	Section 9.5
	 	Certain Matters Affecting Trustee	 	 	60	 
	Section 9.6
	 	Trustee Not Liable for Certificates or Receivables	 	 	62	 
	Section 9.7
	 	Trustee May Own Certificates	 	 	63	 
	Section 9.8
	 	Trustee’s Fees and Expenses	 	 	63	 
	Section 9.9
	 	Eligibility Requirements for Trustee	 	 	63	 
	Section 9.10
	 	Resignation or Removal of Trustee	 	 	63	 
	Section 9.11
	 	Successor Trustee	 	 	64	 
	Section 9.12
	 	Merger or Consolidation of or
Assumption of Obligations of Trustee	 	 	65	 
	Section 9.13
	 	Appointment of Co-Trustee or Separate Trustee	 	 	65	 
	Section 9.14
	 	Representations and Warranties of Trustee	 	 	67	 
	Section 9.15
	 	Reports by Trustee	 	 	68	 
	Section 9.16
	 	Tax Returns	 	 	68	 
	Section 9.17
	 	Trustee May Enforce Claims Without
Possession of Certificates	 	 	68	 
	 
	ARTICLE X TERMINATION	 	 	68	 
	Section 10.1
	 	Termination of the Trust	 	 	68	 
	Section 10.2
	 	Optional Purchase of All Receivables	 	 	69	 
	 
	ARTICLE XI MISCELLANEOUS PROVISIONS	 	 	70	 
	Section 11.1
	 	Amendment	 	 	70	 
	Section 11.2
	 	Protection of Title to Trust Property	 	 	71	 
	Section 11.3
	 	Limitation on Rights of Holders	 	 	73	 
	Section 11.4
	 	Governing Law	 	 	74	 
	Section 11.5
	 	Notices	 	 	74	 
	Section 11.6
	 	Severability of Provisions	 	 	74	 
	Section 11.7
	 	Assignment	 	 	74	 
	Section 11.8
	 	Certificates Nonassessable and Fully Paid	 	 	74	 
	Section 11.9
	 	Intention of Parties	 	 	75	 
	Section 11.10
	 	Counterparts	 	 	75	 
	Section 11.11
	 	Further Assurances	 	 	75	 
	Section 11.12
	 	No Waiver; Cumulative Remedies	 	 	75	 

iii

 

TABLE
OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 11.13
	 	Regulation AB	 	 	75	 
	Section 11.14
	 	Information to Be Provided by the Trustee	 	 	76	 

iv

 

SCHEDULE

	 	 	 
	SCHEDULE A LOCATION OF RECEIVABLE FILES

	 	S-1

EXHIBITS

	 	 	 
	EXHIBIT A FORM OF CLASS A CERTIFICATE

	 	A-1
	EXHIBIT B FORM OF CLASS B CERTIFICATE

	 	B-1
	EXHIBIT C FORM OF SERVICER’S REPORT

	 	C-1
	EXHIBIT D SERVICING CRITERIA

	 	D-1
	EXHIBIT E FORM OF TRUSTEE’S ANNUAL CERTIFICATION

	 	E-1

v

 

          POOLING AND SERVICING AGREEMENT dated as of                     , 200_, between Volkswagen Auto
Lease/Loan Underwritten Funding, LLC, a Delaware limited liability company, as Seller, VW Credit,
Inc., a Delaware corporation, as Servicer, and                     , a                                         , as trustee
hereunder.

          In consideration of the premises and of the mutual agreements herein contained, and other good
and valuable consideration, the receipt of which is acknowledged, the parties hereto, intending to
be legally bound, agree as follows:

ARTICLE I

DEFINITIONS.

          Section 1.1 Definitions. Whenever used in this Agreement, the following capitalized words and
phrases, unless the context otherwise requires, have the following meanings:

          “Accounts” means collectively the Collection Account, the Class A Distribution Account, the
Class B Distribution Account and the Payahead Account.

          “Account Property” means all amounts and investments held from time to time in any Account or
the Reserve Account, as the case may be (whether in the form of deposit accounts, instruments,
certificated securities, book entry securities, uncertificated securities or otherwise), and all
proceeds of the foregoing.

          “Actuarial Receivable” means a Receivable that provides for (i) amortization of the loan over
a series of fixed level payment monthly installments and (ii) each monthly installment, including
the monthly installment representing the final payment on the Receivable, to consist of an amount
of interest equal to 1/12 of the Contract Rate of the loan multiplied by the unpaid principal
balance of the loan, and an amount of principal equal to the remainder of the monthly installment.

          “Acquired Receivable” means a Receivable acquired by a the Transferor through a bulk purchase
of Receivables or the acquisition of a financial institution that owned the Receivable.

          “Additional Servicing” means, for each Distribution Date, an amount equal to the lesser of (i)
the amount by which (A) the aggregate amount of the Servicing Fee for such Distribution Date and
all prior Distribution Dates exceeds (B) the aggregate amount of Additional Servicing paid to the
Servicer on all prior Distribution Dates and (ii) the amount, if any, by which (A) the sum of
Available Interest and Available Principal for such Distribution Date exceed (B) the sum, without
duplication of (x) the Servicing Fee paid on such Distribution Date with respect to the related
Collection Period and any accrued and unpaid Servicing Fee for prior Collection Periods, (y) all
amounts required to be distributed to the Holders on such

 

 

Distribution Date and (z) the amount, if any, deposited in the Reserve Account on such Distribution Date.

          “Administration
Agreement” means the Administration Agreement dated as of _____, 200___ by and
among the Trust, the Administrator and the Indenture Trustee as amended, restated and otherwise
modified from time to time

          “Administrator” means VW Credit in its capacity as administrator of the Trust under the
Administration Agreement, and any successor thereto.

          “Affiliate” means, with respect to any specified Person, any other Person controlling,
controlled by or under common control with such specified Person. For the purposes of this
definition, “control” when used with respect to any specified 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; and the terms “controlling” and “controlled” have
meanings correlative to the foregoing. A Person shall not be deemed to be an Affiliate of any
specified Person solely because such other Person has the contractual right or obligation to manage
such specified Person or act as servicer with respect to the financial assets of such specified
Person unless such other Person controls the specified Person through equity ownership or
otherwise.

          “Agreement” means this Pooling and Servicing Agreement, including its schedules and exhibits,
as amended, modified or supplemented from time to time.

          “Authorized Officer” means any officer within the Corporate Trust Office of Trustee, including
any vice president, assistant vice president, secretary, assistant secretary or any other officer
of 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.

          “Available Interest” means, for any Distribution Date, the sum of the following amounts for
the related Collection Period: (a) that portion of the Collections on the Receivables received
during the such Collection Period that is allocable to interest in accordance with Servicer’s
customary servicing procedures, (b) all Liquidation Proceeds received during the related Collection
Period and (c) the Purchase Amounts, to the extent allocable to accrued interest, of all
Receivables that are purchased by Servicer as of the last day of the related Collection Period.
“Available Interest” for any Distribution Date shall exclude all payments and proceeds of any
Receivables the Purchase Amount of which has been distributed on a prior Distribution Date.

          “Available Principal” means, for any Distribution Date the sum of the following amounts with
respect to the related Collection Period: (a) that portion of all Collections on the Receivables
received during such Collection Period that is allocable to principal in accordance

2

 

with Servicer’s customary servicing procedures; and (b) the Purchase Amounts, to the extent attributable to
principal, of all Receivables purchased by Servicer as of the last day of the related Collection
Period. “Available Principal” on any Distribution Date shall exclude all payments
and proceeds of any Receivables the Purchase Amount of which has been distributed on a prior
Distribution Date.

          “Available Reserve Amount” is defined in Section 4.6.

          “Book Entry Certificate” means beneficial interests in the definitive Certificates described
in Section 5.8, the ownership of which shall be evidenced, and transfers of which shall be made,
through book entries by a Clearing Agency as described in Section 5.8.

          “Business Day” means a day that is not a Saturday or a Sunday and that in the States of New
York, Illinois, Virginia and the State in which the Corporate Trust Office is located is neither a
legal holiday nor a day on which banking institutions are authorized by law, regulation or
executive order to be closed.

          “Certificate” means any Class A Certificate or Class B Certificate.

          “Certificate Owner” means, with respect to a Book Entry Certificate, the Person who is the
owner of such Book Entry Certificate, as reflected on the books of the Clearing Agency, or on the
books of a Person maintaining an account with such Clearing Agency (directly or as an indirect
participant, in accordance with the rules, regulations and procedures of such Clearing Agency).

          “Certificate Register” means the register maintained by Trustee for the registration of
Certificates and of transfers and exchanges of Certificates as provided in Section 5.3.

          “Class A Certificate” means a certificate executed by Trustee on behalf of the Trust and
authenticated by Trustee substantially in the form of Exhibit A.

          “Class A Certificate Balance” means, at any time, the original Class A Certificate Balance, as
reduced by all amounts allocable to principal on the Class A Certificates distributed to Class A
Holders prior to such time.

          “Class A Certificate Rate” means ___% per annum, calculated on the basis of a 360-day year
consisting of twelve 30-day months.

          “Class A Distribution Account” means the account established, maintained and designated as the
“Class A Distribution Account” pursuant to Section 4.1.

          “Class A Holder” means the Person in whose name a Class A Certificate is registered in the
Certificate Register, except that, solely for the purpose of giving any consent, request or waiver
pursuant to this Agreement, the interest evidenced by any Class A Certificate

3

 

registered in the name of the Transferor, Servicer, or any Person actually known to an Authorized Officer of Trustee
to be an Affiliate, the Transferor, or Servicer, shall not be taken into account in determining
whether the requisite percentage necessary to effect any such consent, request or waiver shall have
been obtained.

          “Class A Interest Carryover Shortfall” means, (a) with respect to the initial Distribution
Date, zero, and (b) with respect to any other Distribution Date, the excess of Class A Monthly
Interest for the preceding Distribution Date and any outstanding Class A Interest Carryover
Shortfall on such preceding Distribution Date, over the amount in respect of interest that is
actually deposited in the Class A Distribution Account on such preceding Distribution Date, plus 30
days of interest on such excess, to the extent permitted by law, in an amount equal to the product
of one-twelfth multiplied by the Class A Certificate Rate multiplied by the amount of such excess.

          “Class A Interest Distributable Amount” means, with respect to any Distribution Date, the sum
of (a) the Class A Monthly Interest for such Distribution Date and (b) the Class A Interest
Carryover Shortfall for such Distribution Date.

          “Class A Monthly Interest” means, for any Distribution Date, an amount equal to one-twelfth
(or the actual number of days from and including the Closing Date to but excluding                     ,
200___ divided by 360, for the initial Distribution Date) of the Class A Certificate Rate multiplied
by the Class A Certificate Balance as of the close of business on the immediately preceding
Distribution Date, after giving effect to all payments of principal to the Class A Certificates on
or prior to such Distribution Date (or, in the case of the first Distribution Date, the Original
Class A Certificate Balance).

          “Class A Monthly Principal” means, with respect to any Distribution Date, the Class A
Percentage of Available Principal for such Distribution Date plus the Class A Percentage of
Realized Losses with respect to the related Collection Period.

          “Class A Percentage” means ___%.

          “Class A Pool Factor” means, with respect to any Distribution Date, the Class A Certificate
Balance as of the close of business on such Distribution Date (after giving effect to any payments
to be made on such Distribution Date) divided by the Original Class A Certificate Balance,
expressed as a seven-digit decimal.

          “Class A Principal Carryover Shortfall” means, as of the close of business on any Distribution
Date, the excess of Class A Monthly Principal for such Distribution Date and any outstanding Class
A Principal Carryover Shortfall from the preceding Distribution Date over the amount in respect of
principal that is actually deposited in the Class A Distribution Account on such Distribution Date.

          “Class A Principal Distributable Amount” means, with respect to any Distribution Date, the sum
of Class A Monthly Principal for such Distribution Date and, in the case of any

4

 

Distribution Date other than the initial Distribution Date, the Class A Principal Carryover Shortfall as of the close
of business on the preceding Distribution Date; provided that the Class A Principal Distributable
Amount shall not exceed the Class A Certificate Balance prior to such Distribution Date. In
addition, on the Final Scheduled Distribution Date, the Class A Principal Distributable Amount
shall include, to the extent not included under the preceding sentence, the
amount that is necessary (after giving effect to the other amounts to be deposited in the
Class A Distribution Account on such Distribution Date and allocable to principal) to reduce the
Class A Certificate Balance to zero.

          “Class B Certificate” means a certificate executed by Trustee on behalf of the Trust and
authenticated by Trustee substantially in the form of Exhibit B.

          “Class B Certificate Balance” means, at any time, the Original Class B Certificate Balance, as
reduced by all amounts allocable to principal on the Class B Certificates distributed to Class B
Holders prior to such time.

          “Class B Certificate Owner” means, with respect to a Book Entry Certificate representing a
beneficial interest in the Class B Certificates, the Person who is the owner of such Book Entry
Certificate, as reflected on the books of the Clearing Agency, or on the books of a Person
maintaining an account with such Clearing Agency (directly or as an indirect participant in
accordance with the rules, regulations and procedures of such Clearing Agency).

          “Class B Certificate Rate” means ___% per annum, calculated on the basis of a 360-day year
consisting of twelve 30-day months.

          “Class B Distribution Account” means the account established, maintained and designated as the
“Class B Distribution Account” pursuant to Section 4.1.

          “Class B Holder” means the Person in whose name a Class B Certificate is registered in the
Certificate Register, except that, solely for the purpose of giving any consent, request or waiver
pursuant to this Agreement, the interest evidenced by any Class B Certificate registered in the
name of the Transferor, Servicer, or any Person actually known to an Authorized Officer of Trustee
to be an Affiliate of the Transferor or Servicer, shall not be taken into account in determining
whether the requisite percentage necessary to effect any such consent, request or waiver shall have
been obtained.

          “Class B Interest Carryover Shortfall” means, (a) with respect to the initial Distribution
Date, zero, and (b) with respect to any other Distribution Date, the excess of Class B Monthly
Interest for the preceding Distribution Date and any outstanding Class B Interest Carryover
Shortfall on such preceding Distribution Date, over the amount in respect of interest that is
actually deposited in the Class B Distribution Account on such preceding Distribution Date, plus 30
days of interest on such excess, to the extent permitted by law, in an amount equal to the product
of one-twelfth multiplied by the Class B Certificate Rate multiplied by the amount of such excess.

5

 

          “Class B Interest Distributable Amount” means, with respect to any Distribution Date, the sum
of (a) the Class B Monthly Interest for such Distribution Date and (b) the Class B Interest
Carryover Shortfall for such Distribution Date.

          “Class B Monthly Interest” means, for any Distribution Date, an amount equal to one-twelfth
(or the actual number of days from and including the Closing Date to but excluding
                    ,
200___ divided by 360, for the initial Distribution Date) of the Class B Certificate
Rate multiplied by the Class B Certificate Balance as of the close of business on the immediately
preceding Distribution Date, after giving effect to all payments of principal to the Class B
Certificates on or prior to such Distribution Date (or, in the case of the first Distribution Date,
the Certificate Balance on the Closing Date).

          “Class B Monthly Principal” means, with respect to any Distribution Date, the Class B
Percentage of Available Principal for such Distribution Date plus the Class B Percentage of
Realized Losses with respect to the related Collection Period.

          “Class B Percentage” means ___%.

          “Class B Pool Factor” means, with respect to any Distribution Date, the Class B Certificate
Balance as of the close of business on such Distribution Date (after giving effect to any payments
to be made on such Distribution Date) divided by the Original Class B Certificate Balance,
expressed as a seven-digit decimal.

          “Class B Principal Carryover Shortfall” means, as of the close of business on any Distribution
Date, the excess of Class B Monthly Principal for such Distribution Date and any outstanding Class
B Principal Carryover Shortfall from the preceding Distribution Date over the amount in respect of
principal that is actually deposited in the Class B Distribution Account on such Distribution Date.

          “Class B Principal Distributable Amount” means, with respect to any Distribution Date, the sum
of Class B Monthly Principal for such Distribution Date and, in the case of any Distribution Date
other than the initial Distribution Date, the Class B Principal Carryover Shortfall as of the close
of business on the preceding Distribution Date; provided that the Class B Principal Distributable
Amount shall not exceed the Class B Certificate Balance prior to such Distribution Date. In
addition, on the Final Scheduled Distribution Date, the Class B Principal Distributable Amount
shall include, to the extent not included under the preceding sentence, the amount that is
necessary (after giving effect to the other amounts to be deposited in the Class B Distribution
Account on such Distribution Date and allocable to principal) to reduce the Class B Certificate
Balance to zero.

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

6

 

          “Clearing Agency Participant” means a broker, dealer, bank, other financial institution or
other Person for whom from time to time a Clearing Agency effects book-entry transfers of
securities deposited with the Clearing Agency.

          “Closing Date” means the date of the initial issuance of the Certificates hereunder.

          “Code” means the Internal Revenue Code of 1986 and the Treasury Regulations promulgated
thereunder.

          “Collection Account” means the segregated account or accounts established, maintained and
designated as the “Collection Account” pursuant to Section 4.1.

          “Collection Period” means, (a) in the case of the initial Collection Period, the period from
[but not including] the Cutoff Date to and including
                     ___, 200_ and (b) thereafter, each
calendar month during the term of this Pooling and Servicing Agreement. With respect to any
Determination Date, Deposit Date or Distribution Date, the “related Collection Period” means the
Collection Period preceding the month in which such Determination Date, Deposit Date or
Distribution Date occurs.

          “Collections” means all collections on the Receivables and any proceeds from Insurance
Policies and lender’s single interest insurance policies.

          “Commission” means the Securities and Exchange Commission.

          “Contract Rate” means, with respect to a Receivable, the rate per annum of interest charged on
the outstanding principal balance of such Receivable.

          “Corporate Trust Office” means the principal office of Trustee at which at any particular time
its corporate trust business shall be administered, which office at date of execution of this
Agreement is located at                     , Attention:                     , Telephone:                     ,
Facsimile:                      or at such other address as Trustee may designate from time to time by
notice to the Holders, the Transferor, Seller and Servicer, or the principal corporate trust office
of any successor Trustee (the address of which the successor Trustee will notify the Holders, the
Transferor, Seller and Servicer).

          “Custodian” means Servicer in its capacity as agent of the Trustee, as custodian of the
Receivable Files and the Transferor acting as agent for Servicer for the purpose of maintaining
custody of the Receivables Files.

          “Cutoff Date” means the [opening] of business on                      ___, 200_.

          “Cutoff Date Principal Balance” means, with respect to any Receivable, the Initial Principal
Balance of such Receivable minus the sum of the portion of all payments received

7

 

under such Receivable from or on behalf of the related Obligor on or prior to the Cutoff Date and allocable to
principal in accordance with the terms of the Receivable.

          “Dealer” means, with respect to any Receivable, the seller of the related Financed Vehicle.

          “Dealer Agreement” means an agreement between an Originator and a Dealer pursuant to which
such Originator acquires Motor Vehicle Loans from the Dealer or gives such Dealer the right to
induce persons to apply to such Originator for loans in connection with the retail sale of Motor
Vehicles by such Dealer.

          “Dealer Recourse” means, with respect to any Dealer, any rights and remedies against such
Dealer under the related Dealer Agreement (other than with respect to any breach of representation
or warranty thereunder) with respect to credit losses on a Receivable secured by a Financed Vehicle
sold by such Dealer.

          “Defaulted Receivable” means, with respect to any Collection Period, a Receivable (other than
a Purchased Receivable) which Servicer has determined to charge off during such Collection Period
in accordance with its customary servicing practices; provided that any Receivable which Servicer
is obligated to repurchase or purchase shall be deemed to have become a Defaulted Receivable during
a Collection Period if Servicer fails to deposit the related Purchase Amount on the related Deposit
Date when due.

          “Definitive Certificates” is defined in Section 5.8.

          “Delivery” when used with respect to Account Property means:

     (a) with respect to bankers’ acceptances, commercial paper, negotiable
certificates of deposit and other obligations that constitute “instruments” within
the meaning of Section 9-102(47) of the UCC and are susceptible of physical
delivery, transfer thereof to Trustee or its nominee or custodian by physical
delivery to Trustee or its nominee or custodian endorsed to, or registered in the
name of, Trustee or its nominee or custodian or endorsed in blank, and, with
respect to a “certificated security” (as defined in Section 8-102 of the UCC)
transfer thereof (i) by delivery of such certificated security endorsed to, or
registered in the name of, Trustee or its nominee or custodian or endorsed in blank
to a “financial intermediary” (as defined in Section 8-313 of the UCC) and the
making by such financial intermediary of entries on its books and records
identifying such certificated securities as belonging to Trustee or its nominee or
custodian and the sending by such financial intermediary of a confirmation of the
purchase of such certificated security by Trustee or its nominee or custodian, or
(ii) by delivery thereof to a “clearing corporation” (as defined in Section
8-102(3) of the UCC) and the making by such clearing corporation of appropriate
entries on its books reducing the appropriate

8

 

securities account of the transferor and increasing the appropriate securities account of a financial intermediary by
the amount of such certificated security, the identification by the clearing
corporation of the certificated securities for the sole and exclusive account of
the financial intermediary, the maintenance of such certificated securities by such
clearing corporation or a “custodian bank” (as defined in Section 8-102(4) of the
UCC) or the nominee of either subject to the clearing corporation’s exclusive
control, the sending of a confirmation by the financial intermediary of the
purchase by Trustee or its nominee or custodian of such securities and the making
by such financial intermediary of entries on its books and records identifying such
certificated securities as belonging to Trustee or its nominee or custodian (all of
the foregoing, “Physical Property”), and, in any event, any such Physical Property
in registered form shall be in the name of
Trustee or its nominee or custodian; and such additional or alternative
procedures as may hereafter become appropriate to effect the complete transfer of
ownership of any such Account Property to Trustee or its nominee or custodian,
consistent with changes in applicable law or regulations or the interpretation
thereof;

     (b) with respect to any securities issued by the U.S. Treasury, the Federal
Home Loan Mortgage Corporation or by the Federal National Mortgage Association that
is a book-entry security held through the Federal Reserve System pursuant to
Federal book-entry regulations, the following procedures, all in accordance with
applicable law, including applicable Federal regulations and Articles 8 and 9 of
the UCC: book-entry registration of such Account Property to an appropriate
book-entry account maintained with a Federal Reserve Bank by a financial
intermediary which is also a “depository” pursuant to applicable Federal
regulations and issuance by such financial intermediary of a deposit advice or
other written confirmation of such book-entry registration to Trustee or its
nominee or custodian of the purchase by Trustee or its nominee or custodian of such
book-entry securities; the making by such financial intermediary of entries in its
books and records identifying such book entry security held through the Federal
Reserve System pursuant to Federal book-entry regulations as belonging to Trustee
or its nominee or custodian and indicating that such custodian holds such Account
Property solely as agent for Trustee or its nominee or custodian; and such
additional or alternative procedures as may hereafter become appropriate to effect
complete transfer of ownership of any such Account Property to Trustee or its
nominee or custodian, consistent with changes in applicable law or regulations or
the interpretation thereof; and

     (c) with respect to any item of Account Property that is an uncertificated
security under Article 8 of the UCC and that is not governed by clause (b) above,
registration on the books and records of the issuer thereof in the name of the
financial intermediary, the sending of a confirmation by the financial intermediary
of the purchase by Trustee or its nominee or custodian of

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such uncertificated security, the making by such financial intermediary of entries on its books and
records identifying such uncertificated certificates as belonging to Trustee or its
nominee or custodian.

          “Deposit Date” means, with respect to any Collection Period, the Business Day preceding the
related Distribution Date.

          “Depository Agreement” means the agreement among Seller, Servicer, Trustee and the initial
Clearing Agency, dated the Closing Date.

          “Determination Date” with respect to any Collection Period, means the tenth day of the
calendar month following such Collection Period (or, if the tenth day is not a Business Day, the
next succeeding Business Day).

          “Direct Loan” means motor vehicle promissory notes and security agreements executed by an
Obligor in favor of a motor vehicle lender.

          “Distribution Date” means the ___ day of each month (or, if the ___ day is not a Business
Day, the next succeeding Business Day), commencing ________ ___, 200_.

          “Dollar” and the sign “$” mean lawful money of the United States.

          “Eligible Deposit Account” means either (a) a segregated account with an Eligible Institution
or (b) a segregated trust account with the corporate trust department of a depository institution
organized under the laws of the United States of America or any one of the states thereof or the
District of Columbia (or any domestic branch of a foreign bank), having corporate trust powers and
acting as trustee for funds deposited in such account, so long as the long-term unsecured debt of
such depository institution shall have a credit rating from each Rating Agency in one of its
generic rating categories which signifies investment grade. Any such accounts (other than the
Reserve Account) may be maintained with                     , or any of its
Affiliates, if such accounts meet the requirements described in clause (a) of the preceding
sentence.

          “Eligible Institution” means a depository institution (which may be Servicer or any Affiliate
of Servicer or Trustee) organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign bank), which (a)
has (i) either a long-term senior unsecured debt rating of AA or a short-term senior unsecured debt
or certificate of deposit rating of A-1+ or better by S&P and (ii) (A) a short-term senior
unsecured debt rating of A-1 or better by S&P and (B) a short-term senior unsecured debt rating of
P-1 or better by Moody’s, or any other long-term, short-term or certificate of deposit rating
acceptable to the Rating Agencies and (b) whose deposits are insured by the Federal Deposit
Insurance Corporation. If so qualified, Servicer, any Affiliate of Servicer or Trustee may be
considered an Eligible Institution.

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          “Eligible Investments” shall mean any one or more of the following types of investments:

     (a) direct obligations of, and obligations fully guaranteed as to timely
payment by, the United States of America;

     (b) demand deposits, time deposits or certificates of deposit of any
depository institution (including any Affiliate of the Transferor Seller, Trustee
or any Affiliate of the Trustee) or trust company incorporated under the laws of
the United States of America or any state thereof or the District of Columbia (or
any domestic branch of a foreign bank) and subject to supervision and examination
by Federal or state banking or depository institution authorities (including
depository receipts issued by any such institution or trust company as custodian
with respect to any obligation referred to in clause (a) above or a portion of such
obligation for the benefit of the holders of such depository receipts); provided
that at the time of the investment or contractual commitment to invest therein
(which shall be deemed to be made again each time funds are reinvested following
each Distribution Date), the commercial paper or other short-term senior 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) of such
depository institution or trust company shall have a credit rating from S&P of A-1+
and from Moody’s of P-1;

     (c) commercial paper (including commercial paper of any Affiliate of the
Transferor Seller) having, at the time of the investment or contractual commitment
to invest therein, a rating from S&P of A-1+ and from Moody’s of P-1;

     (d) investments in money market funds (including funds for which Trustee or
any of its Affiliates or any of Seller’s or Transferor’s Affiliates is investment
manager or advisor) having a rating from S&P of AAA-m or AAAm-and from Moody’s of
Aaa;

     (e) bankers’ acceptances issued by any depository institution or trust company
referred to in clause (b) above;

     (f) repurchase obligations with respect to any security that is a direct
obligation of, or fully guaranteed by, the United States of America or any agency
or instrumentality thereof the obligations of which are backed by the full faith
and credit of the United States of America, in either case entered into with a
depository institution or trust company (acting as principal) referred to in clause
(b) above; and

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     (g) any other investment with respect to which each Rating Agency has provided
written notice that such investment would not cause such Rating Agency to downgrade
or withdraw its then current rating on the Class A Certificates or the Class B
Certificates.

          “Eligible Servicer” means a Person which, at the time of its appointment as Servicer, (a) has
a net worth of not less than $50,000,000, (b) is servicing a portfolio of motor vehicle retail
installment sales contracts and/or motor vehicle loans, (c) is legally qualified, and has the
capacity, to service the Receivables, (d) has demonstrated the ability to service a portfolio of
motor vehicle loans similar to the Receivables professionally and competently in accordance with
standards of skill and care that are consistent with prudent industry standards, and (e) is
qualified and entitled to use pursuant to a license or other written agreement, and agrees to
maintain the confidentiality of, the software which Servicer uses in connection with performing its
duties and responsibilities under this Agreement or obtains rights to use, or develops at its own
expense, software which is adequate to perform its duties and responsibilities under this
Agreement.

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

          “Exchange Act” means the Securities Exchange Act of 1934.

          “Final Scheduled Distribution Date” means the                                Distribution Date.

          “Final Scheduled Maturity Date” means the last day of the Collection Period immediately
preceding the Collection Period during which the Final Scheduled Distribution Date falls.

          “Financed Vehicle” means, with respect to a Receivable, the Motor Vehicle, together with all
accessories and accessions thereto, securing or purporting to secure the indebtedness under such
Receivable.

          “Fitch” means Fitch Ratings, or its successor.

          “GAAP” is defined in Section 11.1(c).

          “Holder” means the Person in whose name a Certificate is registered in the Certificate
Register, except that, solely for the purpose of giving any consent, request or waiver pursuant to
this Agreement, the interest evidenced by any Certificate registered in the name of the Transferor,
Servicer or any Person actually known to an Authorized Officer of Trustee to be an Affiliate of the
Transferor or Servicer, shall not be taken into account in determining whether the requisite
percentage necessary to effect any such consent, request or waiver shall have been obtained.

          “Initial Principal Balance” means, in respect of a Receivable, the amount advanced under the
Receivable toward the purchase price of the Financed Vehicle and related

12

 

costs, including accessories, service and warranty contracts, insurance premiums, other items customarily financed
as part of retail motor vehicle loans and/or retail installment sales contracts and other fees
charged by the Transferor or Dealer and included in the amount to be financed, the total of which
is shown as the initial principal balance in the note and security agreement or retail installment
sale contract evidencing and securing such Receivable.

          “Insurance Policies” means, all credit life and disability insurance policies maintained by
the Obligors and all Physical Damage Insurance Policies.

          “Lien” means a security interest, lien, charge, pledge, preference, participation interest or
encumbrance of any kind, other than liens for taxes not yet due and payable, mechanics’ or
materialmen’s liens and other liens for work, labor or materials, and any other liens that may
attach by operation of law.

          “Liquidation Proceeds” means, with respect to any Receivable which has become a Defaulted
Receivable, (a) insurance proceeds received by Servicer with respect to the Insurance Policies, (b)
amounts received by Servicer in connection with such Defaulted Receivable pursuant to the exercise
of rights under that Receivable and (c) the monies collected by Servicer (from whatever source, including proceeds of a sale of a Financed Vehicle or a
deficiency balance recovered after the charge-off of the related Receivable or as a result of any
Dealer Recourse) on such Defaulted Receivable net of any expenses incurred by Servicer in
connection therewith and any payments required by law to be remitted to the Obligor.

          “Majority Holders” means Holders of Certificates evidencing not less than a majority of the
aggregate outstanding principal balance of the Class A Certificates and the Class B Certificates
taken together as a single class.

          “Minimum Specified Reserve Balance” with respect to any Distribution Date means the lesser of
(i) $                     and (ii) the aggregate outstanding Class A Certificate Balance and Class B Certificate
Balance (after giving effect to any distributions on the Certificates on such Distribution Date).

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

          “Motor Vehicle” means a new or used automobile or light duty truck.

          “Motor Vehicle Loan” means a Direct Loan or retail installment sales contract secured by a
Motor Vehicle originated by the Transferor or another financial institution.

          “Obligor” means, with respect to a Receivable, the borrower or co-borrowers under the related
Receivable and any co-signer of the Receivable or other Person who owes or may be primarily or
secondarily liable for payments under such Receivable.

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          “Officer’s Certificate” means a certificate signed by the chairman, the president, any vice
president or the treasurer of the Transferor or Servicer, as the case may be, and delivered to
Trustee.

          “Opinion of Counsel” means a written opinion of counsel (who may be an employee of the
Transferor or Servicer or any of their Affiliates) reasonably acceptable in form to Trustee.

          “Original Certificate Balance” means the sum of the Original Class A Certificate Balance and
the Original Class B Certificate Balance.

          “Original Class A Certificate Balance” means $                    .

          “Original Class B Certificate Balance” means $                    .

          “Original Pool Balance” means the Pool Balance as of the Cutoff Date.

          “Originator” means, with respect to any Direct Loan or retail installment sales contract, the
Transferor that was the lender with respect to such Direct Loan or that acquired such Direct Loan
or retail installment sales contract from a Dealer or other Person.

          “Payaheads” means early payments by or on behalf of Obligors on Precomputed Receivables which,
in accordance with the Servicer’s customary practices, do not constitute scheduled payments or full
prepayments and are applied to principal and interest in a subsequent period.

          “Payahead Account” means the account designated as such, established and maintained pursuant
to Section 4.1.

          “Person” means a legal person, including any individual, corporation, estate, partnership,
limited liability company, joint venture, association, joint stock company, trust, unincorporated
organization, or government or any agency or political subdivision thereof, or any other entity of
whatever nature.

          “Physical Damage Insurance Policy” means a theft and physical damage insurance policy
maintained by the Obligor under a Receivable, providing coverage against loss or damage to or theft
of the related Financed Vehicle.

          “Pool Balance” means, at any time, the aggregate Principal Balance of the Receivables
(excluding Defaulted Receivables) at such time.

          “Pool Factor” means, with respect to any Collection Period, the Pool Balance as of the last
day of such Collection Period divided by the Original Pool Balance, expressed as a seven-digit
decimal.

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          “Precomputed Receivable” means (i) an Actuarial Receivable, (ii) a Rule of 78’s Receivable or
(iii) a Sum of Periodic Balances Receivable.

          “Principal Balance” means, as of any time, for any Receivable, the principal balance of such
Receivable under the terms of the Receivable determined in accordance with the Servicer’s customary
practices.

          “Purchase Agreement” means each Purchase Agreement dated as of                      ___, 200_ by and
between the Transferor and the Seller, as amended, restated or otherwise modified from time to
time.

          “Purchase Amount” of any Receivable means, with respect to any Deposit Date, an amount equal
to the sum of (a) the outstanding Principal Balance of such Receivable as of the last day of the
preceding Collection Period and (b) the amount of accrued and unpaid interest on such Principal
Balance at the related Contract Rate from the date a payment was last made by or on behalf of the
Obligor through and including the last day of such preceding Collection Period, in each case after
giving effect to the receipt of monies collected on such Receivable in such preceding Collection
Period.

          “Purchased Receivable” means, at any time, a Motor Vehicle Loan included in the Schedule of
Receivables as to which payment of the Purchase Amount has previously been made by the Transferor
or Servicer pursuant to this Agreement.

          “Rating Agencies” means Moody’s, S&P and Fitch.

          “Rating Agency Condition” means, with respect to any action, that each Rating Agency shall
have been given 10 days’ prior notice thereof (or such shorter period as shall be acceptable to the
Rating Agencies) and that none of the Rating Agencies shall have notified the Transferor Seller,
Servicer or Trustee in writing that such action will, in and of itself, result in a reduction or
withdrawal of the then current rating on the Class A Certificates or the Class B Certificates.

          “Realized Losses” means, for any Collection Period, the aggregate Principal Balances of any
Receivables that became Defaulted Receivables during such Collection Period.

          “Receivable” means each Motor Vehicle Loan described in the Schedule of Receivables, but
excluding (i) Defaulted Receivables to the extent the Principal Balances thereof have been
deposited in the Collection Account and (ii) any Purchased Receivables.

          “Receivable File” is defined in Section 2.5.

          “Record Date” means, subject to Section 1.4, with respect to any Distribution Date, the last
day of the related Collection Period.

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          “Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.110-229.1123, as such regulation may be amended from time to time and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (January 7,
2005)) or by the staff of the Commission, or as may be provided in writing by the Commission or its
staff from time to time.

          “Related Agreements” means the Certificates, the Depository Agreement and the underwriting
agreement between Seller and the underwriter(s) of the Certificates. The Related Agreements to be
executed by any party are referred to herein as “such party’s Related Agreements”, “its Related
Agreements” or by a similar expression.

          “Required Rating” means a rating with respect to short term deposit obligations of at least
P-1 by Moody’s and at least A-1 by S&P.

          “Reserve Account” means the account established, maintained and designated as the “Reserve
Account” pursuant to Section 4.6.

          “Reserve Account Initial Deposit” means cash or Eligible Investments having a value of at
least $                    .

          “Reserve Account Property” is defined in Section 4.6.

          “Responsible Officer” means, with respect to the Trustee, any officer within the corporate
trust department of the Trustee, including any vice president, assistant vice president,
assistant secretary, assistant treasurer, trust officer or any other officer of the Trustee
who customarily performs functions similar to those performed by the persons who at the time shall
be such officers, respectively, or to whom any corporate trust matter is referred because of such
person’s knowledge of and familiarity with the particular subject and who, in each case, shall have
direct responsibility for the administration of the Agreement,

          “Rule of 78’s Receivable” means a Receivable that provides for the payment by the Obligor of a
specified total amount of payments, payable in equal monthly installments on each due date, which
total represents the principal amount financed and add-on interest in an amount calculated at the
stated Contract Rate for the term of the Receivable and allocated to each monthly payment based
upon a fraction, the numerator of which is the number of payments scheduled to have been made prior
to the due date for such monthly payments on such Receivable and the denominator of which is the
sum of all such numbers of payments to be made until the maturity of such Receivable.

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

16

 

          “Schedule of Receivables” means, with respect to the Motor Vehicle Loans to be conveyed to
Seller by the Transferor and to Trustee by Seller, the list identifying such retail Motor Vehicle
Loans delivered to Trustee on the Closing Date.

          “Securities Act” means the Securities Act of 1933.

          “Securities Intermediary” is defined in Section 4.6 of this Agreement.

          “Seller” means Volkswagen Auto Lease/Loan Underwritten Funding, LLC, in its capacity as seller
of the Receivables to the Trust under this Agreement, or any successor pursuant to Section 6.3.

          “Servicer” means VW Credit, Inc., in its capacity as servicer of the Receivables under this
Agreement, any successor pursuant to Section 7.3 or any successor Servicer appointed and acting
pursuant to Section 8.2.

          “Servicer Termination Event” means an event specified in Section 8.1.

          “Servicer’s Report” is defined in Section 3.9.

          “Servicing Criteria” shall mean the “servicing criteria” set forth in Item 1122(d) of
Regulation AB.

          “Servicing Fee” means, with respect to any Distribution Date, an amount equal to the product
of (a) one-twelfth of the Servicing Fee Rate, multiplied by (b) the Pool Balance as of the
beginning of the first day of the preceding Collection Period.

          “Servicing Fee Rate” shall be ___% per annum, calculated on the basis of a 360-day year
consisting of twelve 30-day months.

          “Servicing Officer” means any individual involved in, or responsible for, the administration
and servicing of the Receivables, whose name appears on a list of servicing officers attached to an
Officer’s Certificate furnished to Trustee by Servicer, as such list may be amended from time to
time by Servicer in writing.

          “Simple Interest Method” means the method of allocating a fixed level payment monthly
installments between principal and interest, pursuant to which such installment is allocated first
to accrued and unpaid interest at the Contract Rate on the unpaid principal balance and the
remainder of such installment is allocable to principal.

          “Simple Interest Receivable” means any Receivable under which the portion of a payment
allocable to interest and the portion allocable to principal is determined in accordance with the
Simple Interest Method.

17

 

          “Specified Reserve Account Balance” means, for any Distribution Date, the greater of (a) ___%
of the sum of the Class A Certificate Balance plus the Class B Certificate Balance on such
Distribution Date (after giving effect to all payments on the Certificates to be made on or prior
to such Distribution Date), and (b) the Minimum Specified Reserve Balance as of such Distribution
Date.

          “Sum of Periodic Balances Receivable” means a Receivable that provides for the payment by the
obligor of a specified total amount of payments, payable in equal monthly installments on each due
date, which total represents the principal amount financed and add-on interest in an amount
calculated at the stated Contract Rate for the term of the Receivable and allocated to each monthly
payment based upon a fraction, the numerator of which is the principal balance of such Receivable
immediately prior to the due date for such monthly payment and the denominator of which is the sum
of all principal balances for each monthly payment to be made until the maturity of such
Receivable.

          “Supplemental Servicing Fee” is defined in Section 3.8.

          “Transferor” means [Volkswagen Auto Lease/Loan Underwritten Funding, LLC].

          “Trust” means the trust created by this Agreement, which shall be known as Volkswagen Auto
Loan Enhanced Trust 200   -   .

          “Trustee” means                     , a                     , as Trustee under this Agreement and any successor
Trustee appointed and acting pursuant to this Agreement.

          “Trust Property” means:

     (a) all right, title and interest of Seller in and to the Receivables, and all
moneys received thereon [on or] after the Cutoff Date;

     (b) all right, title and interest of Seller in the security interests in the
Financed Vehicles granted by Obligors pursuant to the Receivables and any other
interest of Seller in the Financed Vehicles and any other property that shall
secure the Receivables;

     (c) the interest of Seller in any proceeds with respect to the Receivables
from claims on any Insurance Policies covering Financed Vehicles or the Obligors or
from claims under any lender’s single interest insurance policy naming the
Transferor as an insured;

     (d) rebates of premiums relating to Insurance Policies and rebates of other
items such as extended warranties financed under the Receivables, in each case, to
the extent the Servicer would, in accordance with its customary practices, apply
such amounts to the Principal Balance of the related Receivable;

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     (e) the interest of Seller in any proceeds from (i) any Receivable repurchased
by a Dealer, pursuant to a Dealer Agreement, as a result of a breach of
representation or warranty in the related Dealer Agreement, (ii) a default by an
Obligor resulting in the repossession of the Financed Vehicle under the applicable
Motor Vehicle Loan or (iii) any Dealer Recourse or other rights relating to the
Receivables under Dealer Agreements;

     (f) all right, title and interest in all funds on deposit from time to time in
the Collection Account, the Payahead Account, the Class A Distribution Account and
the Class B Distribution Account (including the Account Property related thereto)
and in all investments and proceeds thereof (but excluding all investment income
thereon);

     (g) all right, title and interest of Seller under each Purchase Agreement,
including the right of Seller to cause the Transferor to repurchase Receivables
from Seller;

     (h) all right, title and interest of Seller in any instrument or document
relating to the Receivables; and

     (i) the proceeds of any and all of the foregoing.

Notwithstanding anything to the contrary contained herein, the Trust Property shall
not include, and the Trust shall not have any right to, the Reserve Account or any
funds actually or deemed to be deposited in such account or any investments therein.

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

          Section 1.2 Other Interpretative Provisions. For purposes of this Agreement, unless the
context otherwise requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined, shall have the
respective meanings given to them under generally accepted accounting principles; (b) terms defined
in Article 9 of the UCC as in effect in the relevant jurisdiction and not otherwise defined in this
Agreement are used as defined in that Article; (c) the words “hereof,” “herein” and “hereunder” and
words of similar import refer to this Agreement as a whole and not to any particular provision of
this Agreement; (d) references to any Article, Section, Schedule, Appendix or Exhibit are
references to Articles, Sections, Schedules, Appendices and Exhibits in or to this Agreement and
references to any paragraph, subsection, clause or other subdivision within any Section or
definition refer to such paragraph, subsection, clause or other subdivision of such Section or
definition; (e) the term “including” means “including without limitation”; (f) except as otherwise
expressly provided herein, references to any law or regulation refer to that law or regulation as amended from
time to time and include any successor law or regulation;

19

 

(g) references to any Person include that Person’s successors and assigns; and (h) headings are for purposes of reference only
and shall not otherwise affect the meaning or interpretation of any provision hereof.

          Section 1.3 Calculations. All calculations of the amount of interest accrued on the
Certificates during any Collection Period and all calculations of the amount of the Servicing Fee
payable with respect to a Collection Period shall be made on the basis of a 360-day year consisting
of twelve 30-day months.

          Section 1.4 References. All references to the Record Date prior to the first Record Date in
the life of the Trust shall be to the Closing Date. All references to the first day of a
Collection Period shall refer to the opening of business on such day. All references to the last
day of a Collection Period shall refer to the close of business on such day. All references herein
to the close of business means the close of business, Detroit, Michigan time.

          Section 1.5 Action by or Consent of Holders. Whenever any provision of this Agreement refers
to action to be taken, or consented to, by Holders, such provision shall be deemed to refer to
Holders of record as of the Record Date immediately preceding the date on which such action is to
be taken, or consented to, by Holders.

ARTICLE II

THE TRUST PROPERTY.

          Section 2.1 Conveyance of Trust Property. In consideration of Trustee’s delivery to Seller or
its designee of authenticated Certificates, in authorized denominations, in an aggregate amount
equal to the Original Certificate Balance, Seller hereby sells, transfers, assigns and conveys to
Trustee, upon the terms and conditions hereof, in trust for the benefit of the Holders, the Trust
Property, without recourse (except to the extent of the Servicer’s obligations under this Agreement
and the Related Agreements). The sale, transfer, assignment, setting over and conveyance made
hereunder shall not constitute and is not intended to result in an assumption by Trustee, any Holder or any Certificate Owner of any obligation of the Transferor
to the Obligors, the Dealers or any other Person in connection with the Receivables and the other
Trust Property or any agreement, document or instrument related thereto.

          Section 2.2 Representations and Warranties as to Each Receivable. The Servicer hereby makes
the following representations and warranties as to each Receivable on which Trustee shall rely in
accepting the Trust Property in trust and authenticating the Certificates. Unless otherwise
indicated, such representations and warranties shall speak as of the Closing Date, but shall
survive the sale, transfer and assignment of the Receivables and the other Trust Property to the
Trust.

     (a) Characteristics of Receivables. The Receivable has been fully and
properly executed by the parties thereto and (i) is a Direct Loan made by an

20

 

Originator or has been originated by a Dealer in the ordinary course of such
Dealer’s business and has been purchased by an Originator, in either case, in the
ordinary course of such Originator’s business and in accordance with such
Originator’s underwriting standards to finance the retail sale by a Dealer of the
related Financed Vehicle or has otherwise been acquired by the Transferor, (ii) the
Originator of which has underwriting standards that require physical damage
insurance to be maintained on the related Financed Vehicle, (iii) is secured by a
valid, subsisting, binding and enforceable first priority security interest in
favor of the Transferor in the Financed Vehicle (subject to administrative delays
and clerical errors on the part of the applicable government agency and to any
statutory or other lien arising by operation of law after the Closing Date which is
prior to such security interest), which security interest is assignable together
with such Receivable, and has been so assigned to Seller, and subsequently assigned
by Seller to Trustee, (iv) contains customary and enforceable provisions such that
the rights and remedies of the holder thereof are adequate for realization against
the collateral of the benefits of the security, (v) provided, at origination, for
level monthly payments (provided that the amount of the last payment may be
different), which fully amortize the Initial Principal Balance over the original
term, (vi) provides for interest at the Contract Rate specified in the Schedule of
Receivables, (vii) was originated in the United States, and (viii) constitutes
“chattel paper” as defined in the UCC.

     (b) Individual Characteristics. The Receivables have the following individual
characteristics as of the Cutoff Date: (i) each Receivable is secured by a Motor
Vehicle; (ii) each Receivable has a Contract Rate of at least ___% and not more
than ___%; (iii) each Receivable had a remaining number of scheduled payments, as
of the Cutoff Date, of not less than                      and not more than                     ; (iv) each
Receivable had an initial Principal Balance of not less than $                     and not more
than $                    ; (v) no Receivable was more than 30 days past due as of the Cutoff
Date; (vi) no Financed Vehicle had been repossessed as of the Cutoff Date; (vii) no
Receivable is subject to a force placed Physical Damage Insurance Policy on the
related Financed Vehicle; [(viii) each
Receivable is a Simple Interest Receivable;] and (ix) the Dealer of the
Financed Vehicle has no participation in, or other right to receive, any proceeds
of the Receivable. The Receivables were selected using selection procedures that
were not intended by the Transferor or Seller to be adverse to the Holders.

     (c) Schedule of Receivables. The information with respect to each Receivable
set forth in the Schedule of Receivables, including (without limitation) the
identity and address of the Obligor, account number, the Initial Principal Balance,
the maturity date and the Contract Rate, was true and correct in all material
respects as of the close of business on the Cutoff Date.

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     (d) Compliance with Law. The Receivable complied at the time it was
originated or made, and will comply as of the Closing Date, in all material
respects with all requirements of applicable federal, state and local laws, and
regulations thereunder, including, to the extent applicable, usury laws, the
Federal Truth in Lending Act, the Equal Credit Opportunity Act, the Fair Credit
Billing Act, the Fair Credit Reporting Act, the Federal Trade Commission Act, the
Magnuson-Moss Warranty Act, the Fair Debt Collection Practices Act, Federal Reserve
Board Regulations B and Z and any other consumer credit, consumer protection, equal
opportunity and disclosure laws.

     (e) Binding Obligation. The Receivable constitutes the genuine, legal, valid
and binding payment obligation in writing of the Obligor, enforceable in all
material respects by the holder thereof in accordance with its terms, subject to
the effect of bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors’ rights generally, and the Receivable is not
subject to any right of rescission, setoff, counterclaim or defense, including the
defense of usury.

     (f) Lien in Force. Neither Seller nor the Transferor has taken any action
which would have the effect of releasing the related Financed Vehicle from the Lien
granted by the Receivable in whole or in part.

     (g) No Amendment or Waiver. No material provision of the Receivable has been
amended, waived, altered or modified in any respect, except such waivers as would
be permitted under this Agreement, and no amendment, waiver, alteration or
modification causes such Receivable not to conform to the other representations or
warranties contained in this Section.

     (h) No Liens. Neither Seller nor the Transferor has received notice of any
Liens or claims, including Liens for work, labor, materials or unpaid state or
federal taxes, relating to the Financed Vehicle securing the Receivable, that are
or may be prior to or equal to the Lien granted by the Receivable.

     (i) No Default. Except for payment delinquencies continuing for a period of
not more than 30 days as of the Cutoff Date, to the knowledge of Seller, no
default, breach, violation or event permitting acceleration under the terms of the
Receivable exists and no continuing condition that with notice or lapse of time, or
both, would constitute a default, breach, violation or event permitting
acceleration under the terms of the Receivable has arisen.

     (j) Insurance. The Receivable requires the Obligor to insure the Financed
Vehicle under a Physical Damage Insurance Policy, pay the premiums for such
insurance and keep such insurance in full force and effect.

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     (k) Good Title. No Receivable has been sold, transferred, assigned, or
pledged by Seller to any Person other than the Trust. Immediately prior to the
transfer and assignment herein contemplated, Seller had good and marketable title
to the Receivable free and clear of any Lien and had full right and power to
transfer and assign the Receivable to the Trust and immediately upon the transfer
and assignment of the Receivable to the Trust, the Trust shall have good and
marketable title to the Receivable, free and clear of any Lien; and the Trust’s
interest in the Receivable resulting from the transfer has been perfected under the
UCC.

     (l) Obligations. The Transferor has duly fulfilled all obligations on its
part to be fulfilled under, or in connection with, the Receivable.

     (m) Possession. There is only one original executed Receivable, and
immediately prior to the Closing Date, the Transferor will have possession of such
original executed Receivable.

     (n) [No Government Obligor. The Obligor on the Receivable is not the United
States of America or any state thereof or any local government, or any agency,
department, political subdivision or instrumentality of the United States of
America or any state thereof or any local government.]

     (o) Marking Records. By the Closing Date, Seller shall have caused the
portions of Seller’s and the Transferor’s electronic master record of Motor Vehicle
Loans relating to the Receivables to be clearly and unambiguously marked to show
that the Receivable is owned by Trustee in accordance with the terms of this
Agreement.

     (p) No Assignment. As of the Closing Date, Seller shall not have taken any
action to convey any right to any Person that would result in such Person having a
right to payments received under the Insurance Policies or Dealer Agreements, or
payments due under the Receivable, that is senior to, or equal with, that of
Trustee.

     (q) Lawful Assignment. The Receivable has not been originated in, and is not
subject to the laws of, any jurisdiction under which the sale, transfer or
assignment of such Receivable hereunder or pursuant to transfers of the
Certificates are unlawful, void or voidable. Neither Seller nor the Transferor has
entered into any agreement with any obligor that prohibits, restricts or conditions
the assignment of any portion of the Receivables.

          Section 2.3 Representations and Warranties as to the Receivables in the Aggregate. The
Servicer hereby makes the following representations and warranties as to the Receivables on which
Trustee shall rely in accepting the Trust Property in trust and

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authenticating the Certificates. Unless otherwise indicated, such representations and warranties shall speak as of the Closing Date,
but shall survive the sale, transfer and assignment of the Receivables and the other Trust Property
to the Trust.

     (a) Amounts. The Original Pool Balance was $                    .

     (b) Aggregate Characteristics. The Receivables had the following
characteristics in the aggregate as of the Cutoff Date: (i) approximately ___% of
the Original Pool Balance was attributable to loans for purchases of new Financed
Vehicles, and approximately ___% of the Original Pool Balance was attributable to
loans for purchases of used Financed Vehicles; (ii) approximately ___%, ___%, ___%
and ___% of the Original Pool Balance was attributable to Receivables the mailing
addresses of the Obligors with respect to which are located in the States of
                    ,                     ,                     , and                  , respectively, and no other
state accounts for more than 5% of the Original Pool Balance; (iii) the weighted
average Contract Rate of the Receivables was ___%; (iv) there are Receivables
being conveyed by Seller to the Trust; (v) the average Cutoff Date Principal
Balance of the Receivables was $                    ; and (vi) the weighted average original
term and weighted average remaining term of the Receivables were                      months and
___ months, respectively.

          Section 2.4 Repurchase upon Breach. Seller, Servicer or Trustee, as the case may be, shall
inform the other parties to this Agreement promptly, in writing, upon the discovery of any breach
or failure to be true of the representations or warranties made by Servicer in Section 2.2,
provided that the failure to give such notice shall not affect any obligation of The Servicer. If
the breach or failure shall not have been cured by the last day of the Collection Period which
includes the 60th day (or if Servicer elects, the 30th day) after the date on which Servicer
becomes aware of, or receives written notice from Trustee or the Servicer of, such breach or
failure, and such breach or failure materially and adversely affects the interests of Trustee and
the Holders in any Receivable, Servicer shall purchase each such affected Receivable from Trustee
as of such last day of such Collection Period at a purchase price equal to the Purchase Amount for
such Receivable as of such last day of such Collection Period. Notwithstanding the foregoing, any
such breach or failure with respect to the representations and warranties contained in Section 2.2
will not be deemed to have such a material and adverse effect with respect to a Receivable if the facts resulting in such breach or failure do not affect
the ability of the Trust to receive and retain payment in full on such Receivable. In
consideration of the repurchase of a Receivable hereunder, Servicer shall remit the Purchase Amount
of such Receivable, no later than the close of business on the next Deposit Date, in the manner
specified in Section 4.4. The sole remedy of the Trust, Trustee or the Holders with respect to a
breach or failure to be true of the representations or warranties made by Servicer pursuant to
Section 2.2 shall be to require Servicer to purchase Receivables pursuant to this Section.

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          Section 2.5 Custodian of Receivable Files. (a) Custody. To assure uniform quality in
servicing the Receivables and to reduce administrative costs, Trustee, upon the execution and
delivery of this Agreement, revocably appoints the Custodian, as agent, and the Custodian accepts
such appointment, to act as agent on behalf of Trustee to maintain custody of the following
documents or instruments, which are hereby constructively delivered to Trustee with respect to each
Receivable (collectively, a “Receivable File”):

(i) the fully executed original of the Receivable;

(ii) any documents customarily delivered to or held by Servicer evidencing
the existence of any Physical Damage Insurance Policies;

(iii) the original credit application, fully executed by the Obligor;

(iv) the original certificate of title, or such other documents as the
Transferor, as appropriate, keeps on file, in accordance with its customary
procedures, evidencing the security interest of the Transferor in the
Financed Vehicle;

(v) originals or true copies of all documents, instruments or writings
relating to extensions, amendments or waivers of the Receivable; and

(vi) any and all other documents or electronic records that the Transferor
or Servicer, as the case may be, keeps on file, in accordance with its
customary procedures, relating to the Receivable, any Insurance Policies,
the Obligor or the Financed Vehicle.

     (b) Safekeeping. Servicer, in its capacity as Custodian, shall hold the
Receivable Files as agent on behalf of Trustee for the benefit of all present and
future Holders, and maintain such accurate and complete accounts, records and
computer systems pertaining to each Receivable as shall enable Servicer and Trustee
to comply with the terms and provisions of this Agreement applicable to them. In
performing its duties as Custodian hereunder, the Custodian shall act with
reasonable care, exercising the degree of skill, attention and care that Custodian
exercises with respect to receivable files relating to other similar motor vehicle
loans owned and/or serviced by the Custodian and that is consistent with industry
standards. In accordance with its customary practice with respect to its retail
installment sale contracts, Custodian shall conduct, or cause to be conducted,
periodic audits of the Receivable Files held by it under this Agreement, and of the
related accounts, records, and computer systems, and shall maintain the Receivable
Files in such a manner as shall enable Trustee to verify, if Trustee so elects, the
accuracy of the record keeping of Custodian. Custodian shall promptly report to
Trustee any failure on its part to hold the Receivable Files and maintain its
accounts, records and computer systems as

25

 

herein provided, and promptly take
appropriate action to remedy any such failure. The Custodian hereby acknowledges
receipt of the Receivable File for each Receivable listed on the Schedule of
Receivables. Nothing herein shall be
deemed to require Trustee to verify the accuracy of the record keeping of the
Custodian.

     (c) Maintenance of and Access to Records. The Custodian shall maintain each
Receivable File at the location specified in Schedule A to this Agreement, or at
such other office of the Custodian within the United States (or, in the case of any
successor Custodian, within the State in which its principal place of business is
located) as shall be specified to Trustee by 30 days’ prior written notice. Upon
Trustee’s reasonable request, the Custodian shall make available to Trustee or its
agents (or, when requested in writing by Trustee, to its attorneys or auditors) the
Receivable Files and the related accounts, records and computer systems maintained
by the Custodian at such times during the normal business hours of the Custodian
for purposes of inspecting, auditing or making copies or abstracts of the same.

     (d) Release of Documents. Upon written instructions from Trustee, Custodian
shall release any document in the Receivable Files to Trustee or its agent or
designee, as the case may be, at such place or places as Trustee may designate, as
soon thereafter as is practicable. Any document so released shall be handled by
Trustee with due care and returned to the Custodian for safekeeping as soon as
Trustee or its agent or designee, as the case may be, shall have no further need
therefor.

     (e) Title to Receivables. The Custodian agrees that, in respect of any
Receivable File held by the Custodian hereunder, the Custodian will not at any time
have or in any way attempt to assert any interest in such Receivable File or the
related Receivable, other than solely for the purpose of collecting or enforcing
the Receivable for the benefit of the Trust and that the entire equitable interest
in such Receivable and the related Receivable File shall at all times be vested in
the Trust.

     (f) Instructions; Authority to Act. The Custodian shall be deemed to have
received proper instructions with respect to the Receivable Files upon its receipt
of written instructions signed by an Authorized Officer of Trustee. A certified
copy of excerpts of certain resolutions of the Board of Directors of Trustee shall
constitute conclusive evidence of the authority of any such Authorized Officer to
act and shall be considered in full force and effect until receipt by the Custodian
of written notice to the contrary given by Trustee.

     (g) Custodian’s Indemnification. Custodian shall indemnify and hold harmless
Trustee, its officers, directors, employees and agents and the Holders

26

 

from and
against any and all liabilities, obligations, losses, compensatory damages,
payments, costs or expenses (including legal fees if any) of any kind whatsoever
that may be imposed on, incurred or asserted against Trustee or the Holders as the
result of any act or omission of Custodian relating to the
maintenance and custody of the Receivable Files; provided that the Custodian
shall not be liable hereunder to the extent that such liabilities, obligations,
losses, compensatory damages, payments, costs or expenses result from the willful
misfeasance, bad faith or negligence of Trustee. Indemnification under this
Section 2.5(g) shall include reasonable fees and expenses of counsel and expenses
of litigation and shall survive termination of this Agreement and the resignation
or removal of Trustee. If Custodian shall have made any indemnity payments to
Trustee pursuant to this Section and Trustee thereafter shall collect any of such
amounts from Persons other than Custodian, Trustee shall immediately upon receipt
thereof repay such amounts to Custodian, without interest.

     (h) Effective Period and Termination. Servicer’s appointment as Custodian
shall become effective as of the Cutoff Date and shall continue in full force and
effect until terminated pursuant to this subsection (h). If Servicer shall resign
as Servicer in accordance with Section 7.5 or if all of the rights and obligations
of Servicer shall have been terminated under Section 8.1, the appointment of
Servicer as Custodian hereunder may be terminated by Trustee or by the Majority
Holders, in the same manner as Trustee or such Holders may terminate the rights and
obligations of Servicer under Section 8.1. Trustee may terminate Servicer’s
appointment as Custodian hereunder at any time with cause, or with 30 days’ prior
written notice without cause, upon written notification to Servicer. As soon as
practicable after any termination of such appointment Servicer shall deliver, or
cause to be delivered, the Receivable Files to Trustee, Trustee’s agent or
Trustee’s designee at such place or places as Trustee may reasonably designate.
Notwithstanding any termination of Servicer as Custodian hereunder (other than in
connection with a termination resulting from the termination of Servicer, as such,
pursuant to Section 8.1), from and after the date of such termination, and for so
long as Servicer is acting as such pursuant to this Agreement, Trustee shall
provide, or cause the successor Custodian to provide, access to the Receivable
Files to Servicer, at such times as Servicer shall reasonably request, for the
purpose of carrying out its duties and responsibilities with respect to the
servicing of the Receivables hereunder.

     (i) Delegation. Custodian may, at any time without notice or consent,
delegate any or all of its duties to the Transferor; provided that no such
delegation shall relieve Custodian of its responsibility with respect to such
duties and Custodian shall remain obligated and liable to Trustee and the Holders
for its duties hereunder as if Custodian alone were performing such duties.

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ARTICLE III

ADMINISTRATION AND SERVICING OF TRUST PROPERTY.

          Section 3.1 Duties of Servicer. (a) Servicer is hereby authorized to act as agent for the
Trust and in such capacity shall manage, service, administer and make collections on the
Receivables (other than Purchased Receivables), and perform the other actions required by Servicer
under this Agreement, with reasonable care. Without limiting the standard set forth in the
preceding sentence, Servicer shall use a degree of skill, attention and care that is not less than
Servicer exercises with respect to comparable Motor Vehicle Loans that it services for itself or
others and that is consistent with prudent industry standards. Servicer’s duties shall include the
collection and posting of all payments, responding to inquiries by obligors on the Receivables, or
by federal, state or local governmental authorities, investigating delinquencies, sending payment
coupons or monthly invoices to Obligors, reporting required tax information to Obligors, accounting
for Collections, monitoring the status of Physical Damage Insurance Policies with respect to the
Financed Vehicles as provided in Section 3.4(a), furnishing monthly and annual statements to
Trustee with respect to distributions, providing collection and repossession services in the event
of Obligor default and performing the other duties specified herein. Servicer shall also
administer and enforce all rights and responsibilities of the holder of the Receivables provided
for in the Physical Damage Insurance Policies as provided in Section 3.4(b) and the Dealer
Agreements. Without limiting the generality of the foregoing, Servicer is hereby authorized and
empowered by Trustee to execute and deliver, on behalf of itself, the Trust, Trustee and the
Holders, any and all instruments of satisfaction or cancellation, or of partial or full release or
discharge, and all other comparable instruments, with respect to the Receivables or to the Financed
vehicles, all in accordance with this Agreement; provided that notwithstanding the foregoing,
Servicer shall not, except pursuant to an order from a court of competent jurisdiction, release an
Obligor from payment of any unpaid amount under any Receivable or waive the right to collect the
unpaid balance of any Receivable from the Obligor, except in connection with a de minimis
deficiency which Servicer would not attempt to collect in accordance with its customary procedures.
If Servicer shall commence a legal proceeding to enforce a Receivable, Trustee shall thereupon be
deemed to have automatically assigned such Receivable to Servicer, which assignment shall be solely
for purposes of collection. Trustee shall furnish Servicer with any powers of attorney and other
documents or instruments necessary or appropriate to enable Servicer to carry out its servicing and
administrative duties hereunder.

     (b) Servicer may, at any time without notice (except that Servicer shall give
written notice to each Rating Agency of any delegation outside the ordinary course
of business of the substantial portion of its servicing business) or consent,
delegate specific duties to subcontractors who are in the business of performing
such duties; provided that no such delegation shall relieve Servicer of its
responsibility with respect to such duties and Servicer shall remain obligated and
liable to Trustee and the Holders for servicing and administering the Receivables
in accordance with this Agreement as if Servicer alone were performing such duties.

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          Section 3.2 Collection of Receivable Payments. (a) Servicer shall make reasonable efforts to
collect all payments called for under the terms and provisions of the Receivables as and when the
same shall become due, and otherwise act with respect to the Receivables, the Physical Damage
Insurance Policies, the Dealer Agreements and the other Trust Property in such manner as will, in
the reasonable judgment of Servicer, maximize the amount to be received by the Trust with respect
thereto, in accordance with the standard of care required by Section 3.1. Servicer shall be
entitled to amend or modify any Receivable in accordance with its customary procedures if Servicer
believes in good faith that such amendment or modification is in the best interests of the Trust;
provided that Servicer may not, unless ordered by a court of competent jurisdiction or otherwise
required by applicable law, (i) extend a Receivable beyond the Final Scheduled Maturity Date, or
(ii) reduce the Principal Balance or Contract Rate of any Receivable. If Servicer fails to comply
with the provisions of the preceding sentence, Servicer shall be required to purchase the
Receivable or Receivables affected thereby, for the Purchase Amount, in the manner specified in
Section 4.7 as of the close of business for the Collection Period in which such failure occurs.
Servicer may, in its discretion (in accordance with its customary standards, policies and
procedures), waive any prepayment charge, late payment charge, extension fee or any other fee that
may be collected in the ordinary course of servicing a Receivable.

     (b) If in the course of collecting payments under the Receivables, Servicer
determines to set off any obligation of Servicer to an Obligor against an amount
payable by the Obligor with respect to such Receivable, Servicer shall deposit the
amount so set off in the Collection Account, no later than the close of business on
the Deposit Date for the Collection Period in which the set-off occurs. All
references herein to payments or Liquidation Proceeds collected by Servicer shall
include amounts set-off by Servicer.

          Section 3.3 Realization upon Receivables. On behalf of the Trust, Servicer shall charge off a
Receivable as a Defaulted Receivable in accordance with its customary standards (and, in no event
later than ___ days after a Receivable shall have become delinquent) and shall use reasonable
efforts to repossess and liquidate the Financed Vehicle securing any Defaulted Receivable as soon
as feasible after default, in accordance with the standard of care required by Section 3.1. In
taking such action, Servicer shall follow such customary and usual practices and procedures as it
shall deem necessary or advisable in its servicing of Motor Vehicle Loans, and as are otherwise
consistent with the standard of care required under Section 3.1, which shall include exercising any
rights under the Dealer Agreements and selling the Financed Vehicle at public or private sale.
Servicer shall be entitled to recover all reasonable expenses incurred by it in the course of
repossessing and liquidating a Financed Vehicle into cash proceeds or pursuing any deficiency claim
against the related Obligor, but only out of the cash proceeds of such Financed Vehicle or any
deficiency obtained from the Obligor. The foregoing shall be subject to the provision that, in any
case in which a Financed Vehicle shall have suffered damage, Servicer shall not expend funds in
connection with the repair or the repossession of such Financed Vehicle unless it shall determine
in its discretion that such repair and/or repossession

29

 

will increase the Liquidation Proceeds of
the related Receivable by an amount equal to or greater than the amount of such expenses.

          If Servicer elects to commence a legal proceeding to enforce a Dealer Agreement, the act of
commencement shall be deemed to be an automatic assignment from Trustee to Servicer of the rights
under such Dealer Agreement. If, however, in any enforcement suit or legal proceeding, it is held
that Servicer may not enforce a Dealer Agreement on the grounds that it is not a real party in
interest or a Person entitled to enforce the Dealer Agreement, Trustee, on behalf of the Trust, at
Servicer’s expense, shall take such steps as Servicer deems necessary to enforce the Dealer
Agreement, including bringing suit in its name or the names of the Holders.

          Section 3.4 Physical Damage Insurance. (a) The Receivables require that each Financed
Vehicle be insured under a Physical Damage Insurance Policy. Servicer shall monitor or cause to be
monitored, the status of such physical damage insurance coverage to the extent consistent with its
customary servicing procedures. If Servicer shall determine that an Obligor has failed to obtain
or maintain a Physical Damage Insurance Policy covering the related Financed Vehicle, Servicer
shall use its reasonable efforts to enforce the rights of the holder of the Receivable under the
Receivable to require the Obligor to obtain such physical damage insurance, provided that Servicer
shall not be required to take such actions if there is in place a lender’s single interest policy
with respect to the related Financed Vehicle that complies with Servicer’s customary requirements.
It is understood that Servicer will not “force-place” any Physical Damage Insurance Policy on any
Financed Vehicle.

     (b) Servicer may sue to enforce or collect upon the Physical Damage Insurance
Policies, in its own name, if possible, or as agent for the Trust. If Servicer
elects to commence a legal proceeding to enforce a Physical Damage Insurance
Policy, the act of commencement shall be deemed to be an automatic assignment of
the rights of the Trust under such Physical Damage Insurance Policy to Servicer for
purposes of collection only. If, however, in any enforcement suit or legal
proceeding it is held that Servicer may not enforce a Physical Damage Insurance
Policy on the grounds that it is not a real party in interest or a holder entitled
to enforce the Physical Damage Insurance Policy, Trustee, on behalf of the Trust,
at Servicer’s expense, shall take such steps as Servicer deems necessary to enforce
such Physical Damage Insurance Policy, including bringing suit in its name or the
name of Trustee for the benefit of the Holders. Servicer shall make all claims and
enforce its rights under any lender’s single interest insurance policy (to the
extent such claims or rights relate to Receivables) for the benefit of the Trust
and shall treat as Collections all related proceeds of such policies.

          Section 3.5 Maintenance of Security Interests in Financed Vehicles. Servicer, in accordance
with the standard of care required under Section 3.1, shall take such reasonable steps as are
necessary to maintain perfection of the security interest created by each Receivable in the related
Financed Vehicle for the benefit of the Trust. Trustee, on behalf of the Trust,

30

 

hereby authorizes
Servicer, and Servicer hereby agrees, to take such reasonable steps as are necessary to re-perfect
such security interest on behalf of the Trust in the event Servicer receives notice of the
relocation of a Financed Vehicle. If there has been a Servicer Termination Event, upon the request
of Trustee, Servicer, at its expense, shall promptly and duly execute and deliver
such documents and instruments, and take such other reasonable actions as may be necessary, as
evidenced by an Opinion of Counsel delivered to Trustee to perfect the Trust’s interest in the
Trust Property against all other Persons, including the delivery of the Receivables and the
Receivable Files to Trustee, its agent, or its designee, the endorsement and delivery of the
Physical Damage Insurance Policies or the notification of the insurers thereunder, the execution of
transfer instruments, and the endorsement to Trustee and the delivery of the certificates of title
to the Financed Vehicles to the appropriate department or departments of motor vehicles (or other
appropriate governmental agency).

          Section 3.6 Covenants of Servicer. Servicer makes the following covenants on which Trustee
relies in accepting the Trust Property in trust and in executing and authenticating the
Certificates:

     (a) Security Interest to Remain in Force. Servicer shall not release any
Financed Vehicle from the security interest granted by the related Receivable in
whole or in part, except upon payment in full of the Receivable or as otherwise
contemplated herein.

     (b) No Impairment. Servicer shall not impair in any material respect the
rights of the Holders in the Receivables, the Dealer Agreements or the Physical
Damage Insurance Policies or, subject to clause (c), otherwise amend or alter the
terms thereof if, as a result of such amendment or alteration, the interests of the
Trust and the Holders hereunder would be materially adversely affected.

     (c) Amendments. Servicer shall not amend or otherwise modify any Receivable
(including the grant of any extension thereunder), except in accordance with
Section 3.2.

          Section 3.7 Purchase by Servicer upon Breach. Seller, Servicer or Trustee, as the case may
be, shall inform the other parties promptly, in writing, upon the discovery of any breach by
Servicer of its covenants under Section 3.5 or 3.6; provided that the failure to give such notice
shall not affect any obligation of Servicer. Unless the breach shall have been cured by the last
day of the Collection Period which includes the 60th day (or the 30th day, if Servicer so elects)
after the date on which Servicer becomes aware of, or receives written notice of, such breach, and
such breach or failure materially and adversely affects the interests of Trustee and the Holders in
any Receivable, Servicer shall purchase such Receivable from Trustee as of the last day of the
Collection Period at a purchase price equal to the Purchase Amount for such Receivable as of the
last day of such Collection Period; provided that in the case of a breach of the covenant contained
in Section 3.6(c), Servicer shall be obligated to purchase the affected

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Receivable or Receivables
on the Deposit Date immediately succeeding the Collection Period during which Servicer becomes
aware of, or receives written notice of, such breach. In consideration of the purchase of a
Receivable hereunder, Servicer shall remit the Purchase Amount of such Receivable in the manner
specified in Section 5.4. The sole remedy of the
Trust, Trustee or the Holders against Servicer with respect to a breach pursuant to Section
3.5 or 3.6 shall be to require Servicer to repurchase Receivables pursuant to this Section.

          Section 3.8
Servicing Compensation. The servicing fee for (a) the
________ 200___ Distribution
Date shall equal $______ and (b) for each Distribution Date thereafter shall equal the product of
(i) one-twelfth, (ii) the Servicing Fee Rate and (iii) the Pool Balance as of the opening of
business on the first day of the related Collection Period (the “Servicing Fee”). Servicer shall
also be entitled to retain any late fees, extension fees, prepayment charges (including, in the
case of any Rule of 78’s Receivable or Sum of Periodic Balances Receivable that is prepaid in full,
amounts received in excess of the outstanding Principal Balance of such Receivable and accrued
interest thereon calculated as if such Receivable were an Actuarial Receivable) and certain
non-sufficient funds charges and other administrative fees or similar charges allowed by applicable
law with respect to Receivables collected (from whatever source) on the Receivables and shall be
paid any interest earned on deposits in the Accounts (the “Supplemental Servicing Fee”). It is
understood and agreed that Available Interest or Available Principal shall not include any amounts
retained by Servicer which constitute Supplemental Servicing Fees. The Servicing Fee in respect of
a Collection Period (together with any portion of the Servicing Fee that remains unpaid from prior
Distribution Dates), if the Rating Agency Condition is satisfied, may be paid at the beginning of
such Collection Period out of Collections for such Collection Period. As provided in Section 4.5,
as additional compensation, Servicer shall be entitled to receive on each Distribution Date, any
Additional Servicing for such Distribution Date.

          Section 3.9 Servicer’s Report. (a) On each Determination Date, Servicer shall deliver to
Trustee, each Paying Agent and Seller, with a copy to the Rating Agencies, a Servicer’s Report
substantially in the form of Exhibit C (a “Servicer’s Report”) containing, among other things, (i)
all information necessary to make the deposits, transfers and distributions required by Sections
4.4, 4.5 and 4.6, (ii) all information necessary for sending statements to Holders pursuant to
Section 4.7, (iii) all information necessary to prepare the certificate described in Section 9.3,
(iv) all information necessary to determine if there has been a Servicer Termination Event under
Section 8.1, and (v) all information necessary to reconcile all deposits to, and withdrawals from,
the Collection Account for such Distribution Date and the related Collection Period. Servicer also
shall separately identify (by account number of the Receivable as it appears in the Schedule of
Receivables) to Trustee in a written notice or a list in computer readable form the Receivables to
be purchased by Servicer, as the case may be, on the related Deposit Date, and each Receivable
which became a Defaulted Receivable during the related Collection Period.

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     (b) Servicer shall provide Trustee with a database file for the Receivables at
or prior to the Closing Date (but with information as of the close of business on
the Cutoff Date).

          Section 3.10 Annual Statement as to Compliance. (a) The Servicer will deliver to the Trustee
and each Rating Agency, on or before [    ] of each year, beginning on [    ], an
Officer’s Certificate (with appropriate insertions) providing such information as is required
under Item 1123 of Regulation AB.

     (b) Servicer shall deliver to Trustee and each Rating Agency, promptly after
having obtained knowledge thereof, but in no event later than five Business Days
thereafter, written notice in an Officer’s Certificate of any event which
constitutes, or with the giving of notice or lapse of time or both, would become, a
Servicer Termination Event under Section 8.1.

     (c) The Servicer will deliver to the Trustee, on or before [    ] of each year,
beginning on [    ], a report regarding the Servicer’s assessment of compliance with
the Servicing Criteria during the immediately preceding calendar year, including
disclosure of any material instance of non-compliance identified by the Servicer,
as required under paragraph (b) of Rule 13a-18, Rule 15d-18 of the Exchange Act and
Item 1122 of Regulation AB.

          Section 3.11 Annual Servicing Report of Independent Public Accountants. On or before
the 90th day following the end of each fiscal year, beginning with the fiscal year ending
[     ], the Servicer shall cause a firm of nationally recognized independent public accountants (who
may also render other services to the Servicer, the Seller or their respective Affiliates) to
furnish to the Trustee, the Servicer, the Seller and each Rating Agency each attestation report on
assessments of compliance with the Servicing Criteria with respect to the Servicer or any affiliate
thereof during the related fiscal year delivered by such accountants pursuant to paragraph (c) of
Rule 13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The certification
required by this paragraph may be replaced by any similar certification using other procedures or
attestation standards which are now or in the future in use by servicers of comparable motor
vehicle receivables, or which comply with any rule, regulation, “no action” letter or similar
guidance promulgated by the Commission.

          Such report will also indicate that the firm is independent of Servicer within the meaning of
the Code of Professional Ethics of the American Institute of Certified Public Accountants.

          Section 3.12 Access to Certain Documentation and Information Regarding Receivables. Servicer
shall provide Trustee and the Holders with access to the Receivable Files (in the case of the
Holders, only in such cases where it shall be required by applicable statutes or regulations to
give access to such documentation as demonstrated by evidence satisfactory to Servicer in its
reasonable judgment). Such access shall be afforded without charge, but only

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upon reasonable
request and during normal business hours at the offices of Servicer. Nothing in this Section shall
affect the obligation of Servicer to observe any applicable law prohibiting disclosure of
information regarding the Obligors, and the failure of Servicer to provide access to information as
a result of such obligation shall not constitute a breach of this Section. Any Holder, by its
acceptance of a Certificate, shall be deemed to have agreed to keep any information obtained by it
pursuant to this Section confidential and not to use such information for any other purpose, except
as required by applicable law.

          Section 3.13 Reports to the Commission. Servicer shall, on behalf of the Trust, cause to be
filed with the Commission any periodic reports required to be filed under the provisions of the
Exchange Act, and the rules and regulations of the Commission thereunder.

          Section 3.14 Reports to the Rating Agency. Servicer shall deliver to each Rating Agency a
copy of all reports or notices furnished or delivered pursuant to this Article and a copy of any
amendments, supplements or modifications to this Agreement and any other information reasonably
requested by such Rating Agency to monitor this transaction.

          Section 3.15 Servicer Expenses. Servicer shall be required to pay all expenses incurred by it
in connection with its activities hereunder, including fees and disbursements of the Trustee,
independent accountants, taxes imposed on Servicer and expenses incurred in connection with
distributions and reports to Holders.

ARTICLE IV

DISTRIBUTIONS; RESERVE ACCOUNT; STATEMENTS TO HOLDERS.

          Section 4.1 Establishment of Accounts. (a) Trustee, on behalf of the Trust and for the
benefit of the Holders, shall establish and maintain in the name of Trustee one or more segregated
Eligible Deposit Accounts (collectively, the “Collection Account”), bearing a designation clearly
indicating that the funds deposited therein are held for the benefit of the Holders. Trustee, on
behalf of the Trust and for the benefit of the Class A Holders, shall establish and maintain in the
name of Trustee an Eligible Deposit Account (the “Class A Distribution Account”), bearing a
designation clearly indicating that the funds deposited therein are held for the benefit of the
Class A Holders. Trustee, on behalf of the Trust and for the benefit of the Class B Holders, shall
establish and maintain in the name of Trustee an Eligible Deposit Account (the “Class B
Distribution Account”), bearing a designation clearly indicating that the funds deposited therein
are held for the benefit of the Class B Holders. Trustee on behalf of the Trust and for the
benefit of the Holders, shall establish and maintain in the name of Trustee an Eligible Deposit
Account (the “Payahead Account”), bearing a designation clearly indicating that the funds therein
are held for the benefit of the Holders. The Collection Account, the Class A Distribution Account,
the Class B Distribution Account, and the Payahead Account shall be initially established and
maintained with the trust department of Trustee.

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     (b) Funds on deposit in the Collection Account, the Class A Distribution
Account, the Class B Distribution Account, and the Payahead Account shall be
invested by Trustee in Eligible Investments selected by Servicer (pursuant to
standing instructions or otherwise) and confirmed in writing by Servicer to
Trustee; provided that, it is understood and agreed that neither Servicer nor
Trustee shall be liable for any loss arising from such investment in Eligible
Investments. All such Eligible Investments shall be held by Trustee for the
benefit of the beneficiaries of the applicable Account; provided that on each
Distribution Date all interest and other investment income (net of losses and
investment expenses) on funds on deposit therein shall be
withdrawn from the Accounts at the written direction of Servicer and shall be
paid to Servicer and shall not be available or otherwise subject to any claims or
rights of the Holders. Other than as permitted by each Rating Agency, funds on
deposit in the Accounts with respect to any Collection Period or Distribution Date
shall be invested only in Eligible Investments that, except for money market funds,
will mature so that such funds will be available at the close of business on the
related Deposit Date. Funds deposited in an Account on a Deposit Date which
immediately precedes a Distribution Date upon the maturity of any Eligible
Investments are not required to be (but may be) invested overnight. No Eligible
Investment with a stated maturity shall be disposed of prior to that maturity
unless a default occurs with respect to that Eligible Investment and Servicer
directs Trustee in writing to dispose of it.

     (c) Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Accounts and in all proceeds thereof (excluding
all income thereon) and all such funds, investments and proceeds shall be part of
the Trust Property. The Accounts shall be under the sole dominion and the
exclusive custody and control of Trustee, and Trustee shall have sole signature
authority with respect thereto. If, at any time, any of the Accounts ceases to be
an Eligible Deposit Account, Trustee (or Servicer on its behalf) shall within 10
Business Days (or such longer period as to which each Rating Agency may consent)
establish a new Account as an Eligible Deposit Account and shall transfer any cash
and/or any investments that are in the existing Account which is no longer an
Eligible Deposit Account to such new Account.

          Section 4.2 Collections. (a) Subject to the provisions of the succeeding sentence and of
subsections (b) and (c), Servicer shall remit to the Collection Account all payments (other than
amounts constituting Supplemental Servicing Fees) by or on behalf of the Obligors on the
Receivables, including all Liquidation Proceeds received by Servicer during any Collection Period,
as soon as practicable, but in no event after the close of business on the second Business Day,
after receipt thereof. Subject to the provisions of subsections (b) and (c), on the Closing Date,
Servicer shall deposit in the Collection Account all payments by or on behalf of the Obligors on
the Receivables received by Servicer after the Cutoff Date and on or prior to the second Business
Day immediately preceding the Closing Date.

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     (b)
Notwithstanding the provisions of subsection (a), if ______ is the
Servicer and (i) Servicer shall have the Required Rating or (ii) Trustee otherwise
shall have received written notice from each of the Rating Agencies that the then
outstanding rating on the Class A Certificates and the Class B Certificates would
not be lowered or withdrawn as a result, Servicer may deposit all amounts referred
to in subsection (a) for any Collection Period into the Collection Account not
later than the close of business on the Deposit Date with respect to such
Collection Period; provided that if (x) a Servicer Termination Event has occurred
and is continuing, (y) Servicer has been terminated as such pursuant to Section 8.1
or (z) Servicer ceases to have the Required Rating,
Servicer shall deposit such amounts (including any amounts then being held by
Servicer) into the Collection Account as provided in Section 4.2(a).
Notwithstanding the foregoing, the provisions of the proviso to the preceding
sentence shall not be applicable to a successor Servicer solely by reason of the
occurrence of an event specified in clauses (x), (y) and (z) of such proviso with
respect to the outgoing Servicer. Pending the deposit of the amounts referred to
in subsection (a) into the Collection Account, such amounts may be employed by
Servicer at its own risk and for its own benefit and need not be segregated from
Servicer’s own funds. Any losses resulting from Servicer’s actions shall be borne
exclusively by the Servicer. Servicer shall promptly notify Trustee in writing if
it shall obtain or lose the Required Rating.

     (c) Notwithstanding the provisions of subsections (a) and (b), Servicer may
retain, or will be entitled to be reimbursed, from amounts otherwise payable into,
or on deposit in, the Collection Account with respect to a Collection Period any
amounts previously deposited in the Collection Account but later determined to have
resulted from mistaken deposits or postings or checks returned for insufficient
funds, in each case, with respect to which Servicer has not been previously
reimbursed hereunder. The amount to be retained or reimbursed hereunder shall not
be included in Collections with respect to the related Distribution Date.

     (d) With respect to each Precomputed Receivable, collections and payments by
or on behalf of an obligor (other than any amounts constituting Supplemental
Servicing Fees) for each Collection Period shall be applied to the scheduled
payment on such Precomputed Receivable for such Collection Period.

To the extent such collections and payments on a Precomputed Receivable during a Collection Period
exceed the scheduled payment on such Precomputed Receivable and are insufficient to prepay the
Precomputed Receivable in full, collections shall be treated as Payaheads until such later
Collection Period as such Payaheads may be transferred to the Collection Account and applied either
to the scheduled payments due or to prepay the Precomputed Receivable in full in accordance with
Section 4.5.

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          Section 4.3 [RESERVED].

          Section 4.4 Additional Deposits; Net Deposits. (a) On or prior to each Deposit Date,
Servicer shall remit to the Collection Account, in next-day or immediately available funds, the
aggregate Purchase Amounts of the Receivables to be purchased by it under an obligation that arose
during the preceding Collection Period pursuant to Section 2.4, 3.7 or 10.2, respectively.

     (b) Servicer may make the remittances to be made by it pursuant to this
Article IV net of amounts to be distributed to it pursuant to Section 4.5 (but
subject to the priorities set forth therein), for so long as (i) no Servicer
Termination Event has occurred and is continuing and (ii) Servicer has not
been terminated as such pursuant to Section 8.1; provided that Servicer shall
account for all of such amounts in the related Servicer’s Report as if such amounts
were deposited and distributed separately; and provided that, if an error is made
by Servicer in calculating the amount to be deposited or retained by it and a
shortfall in the amount deposited in the Collection Account results, Servicer shall
make a payment of the deficiency to the Collection Account, immediately upon
becoming aware, or receiving notice from Trustee, of such error.

          Section 4.5 Distributions. (a) On each Determination Date, Servicer shall calculate all
amounts required to determine the amounts to be deposited on the related Distribution Date in the
Class A Distribution Account and the Class B Distribution Account which calculations shall be set
forth in the Servicer’s Report delivered to Trustee on or before such Determination Date.

     (b) On or before each Distribution Date, Servicer shall instruct Trustee in
writing (based on the information contained in Servicer’s Report delivered on the
related Determination Date pursuant to Section 3.9) to, and the Trustee shall:

(i) withdraw from the Payahead Account and deposit in the Collection
Account, in immediately available funds, (x) with respect to each
Precomputed Receivable for which the payments made by or on behalf of the
obligor for the related Collection Period are less than the scheduled
payment for the related Collection Period, the amount of Payaheads, if any,
made with respect to such Receivable which, when added to the amount of such
payments, is equal to the amount of such scheduled payment, (y) with respect
to each Precomputed Receivable for which prepayments insufficient to prepay
the Receivable in full have been made by or on behalf of the Obligor for the
related Collection Period, the amount of Payaheads, if any, made with
respect to such Receivable which, when added to the amount of such
prepayments, is equal to an amount

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sufficient to prepay such Receivable in
full, and (z) the amount of all Payaheads, if any, made with respect to any
Purchased Receivable; and

(ii) withdraw from the Collection Account and deposit in the Payahead
Account (or receive from the Servicer, which will remit to the Trustee for
deposit in the Payahead Account, as the case may be), in immediately
available funds, the aggregate amount of collections on Precomputed
Receivables treated as Payaheads pursuant to Section 4.2 for the Collection
Period related to such Distribution Date.

     (c) On each Distribution Date, based on the related Servicer’s Report, Trustee
will make the following deposits and distributions from the Collection Account by
      a.m. (                    ,                      time), to the extent
of the sum of Available Interest and any Available Reserve Amount (and, in the
case of shortfalls in the Class A Interest Distributable Amount occurring under
clause (ii), the Class B Percentage of Available Principal to the extent of such
shortfalls), in the following priority:

(i) to Servicer, any unpaid Servicing Fee for the related Collection Period
and all unpaid Servicing Fees from prior Collection Periods;

(ii) to the Class A Distribution Account, the Class A Interest Distributable
Amount for such Distribution Date; and

(iii) to the Class B Distribution Account, the Class B Interest
Distributable Amount for such Distribution Date.

On each Distribution Date, based on the related Servicer’s Report, Trustee will make the following
deposits and distributions, to the extent of the portion of Available Principal, Available Interest
and Available Reserve Amount remaining after the application of clauses (i), (ii) and (iii), in the
following priority:

(i) to the Class A Distribution Account, the Class A Principal Distributable
Amount for such Distribution Date;

(ii) to the Class B Distribution Account, the Class B Principal
Distributable Amount for such Distribution Date;

(iii) to the Reserve Account, any amounts remaining, until the amount on
deposit in the Reserve Account equals the Specified Reserve Account Balance;

(iv) to the Servicer, the Additional Servicing for such Distribution Date;
and

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(v) to the Transferor, any amounts remaining.

     (d) On each Distribution Date, all amounts on deposit in the Class A
Distribution Account will be distributed to the Class A Holders (determined as of
the related Record Date) by Trustee and all amounts on deposit in the Class B
Distribution Account will be distributed to the Class B Holders (determined as of
the related Record Date) by Trustee. Except as provided in Section 10.1, payments
under this paragraph shall be made to the Holders by check mailed by Trustee to
each Holder’s respective address of record (or, in the case of Certificates
registered in the name of a Clearing Agency, or its nominee, by wire transfer of
immediately available funds). To the extent that Trustee is required to wire funds
to the Holders from the Class A Distribution Account or the Class B Distribution
Account, as applicable, it shall request the bank maintaining the Class A
Distribution Account or the Class B Distribution Account, as applicable,
to make a wire transfer of the amount to be distributed and the bank
maintaining the Class A Distribution Account or the Class B Distribution Account,
as applicable, shall promptly deliver to Trustee a confirmation of such wire
transfer. To the extent that Trustee is required to make payments to Holders by
check hereunder, it shall request the bank maintaining the Class A Distribution
Account or the Class B Distribution Account, as applicable, to provide it with a
supply of checks to make such payments. The bank shall, if a request is made by
Trustee for a wire transfer by
         a.m. (           , time) on any Distribution Date, wire such funds in accordance with such
instructions by          a.m. (          , time) on
such Distribution Date, and it will otherwise act in compliance with the provisions
of this paragraph and the other provisions of this Agreement applicable to it as
the bank maintaining the Class A Distribution Account or the Class B Distribution
Account, as applicable. Servicer shall take all necessary action (including
requiring an agreement to such effect) to ensure that any bank maintaining the
Class A Distribution Account or the Class B Distribution Account, as applicable,
agrees to comply, and complies, with the provisions of this paragraph and the other
provisions of this Agreement applicable to it as the bank maintaining the Class A
Distribution Account or the Class B Distribution Account, as applicable.

          Section 4.6 Reserve Account. (a) Servicer shall establish and maintain in the name of the
Trustee an Eligible Deposit Account (the “Reserve Account”). The Reserve Account shall be
initially established and maintained with the Trustee (the “Securities Intermediary”). On the
Closing Date, Servicer shall deposit or cause to be deposited in the Reserve Account an amount
equal to the Reserve Account Initial Deposit.

     (b) Trustee shall, at the written direction of Administrator, direct the
Securities Intermediary to invest funds on deposit in the Reserve Account in
Eligible Investments selected by Administrator and confirmed in writing by
Administrator to Trustee; provided that it is understood and agreed that none of

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Trustee, Securities Intermediary or Administrator shall be liable for any loss
arising from such investment in Eligible Investments. Funds on deposit in the
Reserve Account shall be invested in Eligible Investments that will mature so that
all such funds will be available at the close of business on each Deposit Date;
provided that to the extent permitted by the Rating Agencies following written
request by Administrator, funds on deposit in the Reserve Account may be invested
in Eligible Investments that mature later than the next Deposit Date. Funds
deposited in the Reserve Account on a Deposit Date upon the maturity of any
Eligible Investments are not required to be (but may be) invested overnight.

     (c) On each Distribution Date, any amounts on deposit in the Collection
Account with respect to the preceding Collection Period after payments to Servicer,
the Class A Distribution Account and the Class B Distribution Account have been
made will be deposited into the Reserve
Account until the amount of the Reserve Account is equal to the Specified
Reserve Account Balance.

     (d) The Reserve Account shall be under the sole custody and control of
Trustee. If, at any time, the Reserve Account ceases to be an Eligible Deposit
Account, Trustee shall within 10 Business Days (or such longer period, not to
exceed 30 calendar days, as to which each Rating Agency may consent) establish a
new Reserve Account as an Eligible Deposit Account and shall transfer any cash
and/or any investments that are in the existing account which is no longer an
Eligible Deposit Account to such new Reserve Account.

     (e) On each Distribution Date, the amount available in the Reserve Account
(the “Available Reserve Amount”) will equal the lesser of (i) the amount on deposit
in the Reserve Account (exclusive of investment earnings) and (ii) the Specified
Reserve Account Balance. On each Deposit Date, Trustee will withdraw funds from
the Reserve Account to the extent that (A) the sum of the amounts required to be
distributed to Holders and the accrued and unpaid Servicing Fees payable to
Servicer on such Distribution Date exceeds (B) the amount on deposit in the
Collection Account with respect to the preceding Collection Period (net of net
investment income). The aggregate amount to be withdrawn from the Reserve Account
on any Deposit Date shall not exceed the Available Reserve Amount with respect to
the related Distribution Date. Trustee will deposit the proceeds of such
withdrawal into the Collection Account on or before such Distribution Date with
respect to which such withdrawal was made.

     (f) Amounts on deposit in the Reserve Account will be released to Transferor
on each Distribution Date to the extent that the amount credited to the Reserve
Account would exceed the Specified Reserve Account Balance. Upon any distribution
to Transferor of amounts from the Reserve Account, the Holders will not have any
rights in, or claims to, such amounts. Amounts distributed to

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Transferor from the
Reserve Account in accordance with this Section shall not be available under any
circumstances to the Trust, Trustee or the Holders and Transferor shall in no event
thereafter be required to refund any such distributed amounts.

     (g) Investment earnings attributable to the Reserve Account Property and
proceeds therefrom shall be held by Trustee for the benefit of Transferor.
Investment earnings attributable to the Reserve Account Property shall not be
available to pay the distributions provided for in Section 4.5 and shall not
otherwise be subject to any claims or rights of the Holders or Servicer. Trustee
shall cause all investment earnings attributable to the Reserve Account to be
distributed on each Distribution Date to Transferor.

     (h) Transferor may at any time, without consent of Holders, sell, transfer,
convey or assign in any manner its rights to and interests in
distributions from the Reserve Account provided that (i) the Rating Agencies
confirm in writing that such action will not result in a reduction or withdrawal of
the rating of the Class A Certificates or the Class B Certificates, (ii) Transferor
provides to Trustee an Opinion of Counsel from independent counsel that such action
will not cause Trust to be classified as an association (or publicly traded
partnership) taxable as a corporation for federal income tax purposes and (iii)
such transferee or assignee agrees in writing to take positions for federal income
tax purposes consistent with the federal income tax positions agreed to be taken by
Transferor.

          Section 4.7 Statements to Holders. On each Distribution Date, Servicer shall provide to
Trustee (with a copy to each Rating Agency) written instructions for Trustee to forward to each
Holder of record a statement setting forth at least the following information as to the
Certificates to the extent applicable:

     (a) the amount of the distribution allocable to principal on the Class A
Certificates and the Class B Certificates;

     (b) the amount of the distribution allocable to interest on the Class A
Certificates and the Class B Certificates;

     (c) the amount of the Servicing Fee paid to Servicer with respect to the
related Collection Period;

     (d) the Class A Certificate Balance, the Class A Pool Factor, the Class B
Certificate Balance and the Class B Pool Factor as of such Distribution Date, after
giving effect to payments allocated to principal reported under clause (a);

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     (e) the Pool Balance as of the close of business on the last day of the
preceding Collection Period;

     (f) the amount of Defaulted Receivables and Liquidation Proceeds, if any, for
such Collection Period;

     (g) the aggregate Purchase Amount of Receivables purchased by Servicer with
respect to the related Collection Period;

     (h) the Class A Interest Carryover Shortfall, the Class B Interest Carryover
Shortfall, the Class A Principal Carryover Shortfall and the Class B Principal
Carryover Shortfall, if any, in each case as applicable to each of the Class A
Certificates and the Class B Certificates, and the change in such amounts from the
preceding statement;

     (i) the balance of the Reserve Account on such Distribution Date, after giving
effect to changes therein on such Distribution Date;

     (j) the Specified Reserve Account Balance as of the close of business on such
Distribution Date; and

     (k) the number, and aggregate principal amount outstanding, of Receivables
past due 31-60, 61-90 and over 90 days.

Each amount set forth pursuant to clauses (a), (b) and (c) shall be expressed in the aggregate and
as a dollar amount per $1,000 of original denomination of a Certificate.

          Within a reasonable period of time after the end of each calendar year, but not later than the
latest date permitted by law, Servicer shall furnish a report to the Trust and Trustee shall
furnish, or cause to be furnished, to each Person who at any time during such calendar year shall
have been a Holder, a statement based upon such report as to the sum of the amounts determined in
clauses (a) and (b) above for such calendar year, or, in the event such Person shall have been a
Holder during a portion of such calendar year, for the applicable portion of such year, and such
other information as is available to Servicer as Servicer deems necessary or desirable to enable
the Holders to prepare their federal income tax returns. The obligation of the Trustee set forth
in this paragraph shall be deemed to have been satisfied to the extent that substantially
comparable information shall be provided pursuant to any requirement of the Code.

ARTICLE V

THE CERTIFICATES.

          Section 5.1 The Certificates. Trustee shall, upon written order or request signed in the name
of Seller by one of its officers authorized to do so and delivered to an Authorized Officer of
Trustee, execute on behalf of the Trust, authenticate and deliver the

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Certificates to or upon the
order of Seller in the aggregate principal amount and denominations as set forth in such written
order or request. The Certificates shall be issuable in denominations of $1,000 and integral
multiples thereof; provided that one Class A Certificate and one Class B Certificate may be issued
in a denomination that represents the residual amount of the original Class A Certificate Balance
and the Original Class B Certificate Balance, respectively. Upon initial issuance, the Class A
Certificates and the Class B Certificates shall be in the form of Exhibit A and Exhibit B,
respectively, which are incorporated by reference herein, and shall be issued as provided in
Section 5.8, in an aggregate amount equal to the Original Class A Certificate Balance and the
Original Class B Certificate Balance, respectively. The Certificates shall be executed by Trustee
on behalf of the Trust by manual or facsimile signature of an Authorized Officer of Trustee under
Trustee’s seal imprinted thereon and attested by the manual or facsimile signature of an Authorized
Officer of Trustee. Certificates bearing the manual or facsimile signatures of individuals who
were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the
Trust, shall be valid and binding obligations of the Trust, notwithstanding that such individuals
shall have ceased to be so authorized prior to the authentication and delivery of such Certificates
or did not hold such offices at the date of such Certificates.

          Section 5.2 Authentication of Certificates. No Certificate shall entitle the Holder thereof
to any benefit under this Agreement, or shall be valid for any purpose, unless there shall appear
on such Certificate a certificate of authentication, substantially in the form set forth in the
form of Certificates attached hereto as Exhibit A and Exhibit B, executed by Trustee by manual
signature. Such authentication shall constitute conclusive evidence, and the only evidence, that
such Certificate has been duly authenticated and delivered hereunder. All Certificates shall be
dated the date of their authentication.

          Section 5.3 Registration of Transfer and Exchange of Certificates. Trustee shall maintain, or
cause to be maintained, at the office or agency to be maintained by it in accordance with Section
5.7, a Certificate Register in which, subject to such reasonable regulations as it may prescribe,
Trustee shall provide for the registration of Certificates and of transfers and exchanges of
Certificates as herein provided. Upon surrender for registration of transfer of any Class A
Certificate or Class B Certificate at such office or agency, Trustee shall execute, authenticate
and deliver, in the name of the designated transferee or transferees, one or more new Class A
Certificates or Class B Certificates, as the case may be, in authorized denominations of a like
aggregate amount. At the option of a Holder, Class A Certificates or Class B Certificates may be
exchanged for other Class A Certificates or Class B Certificates, as the case may be, of authorized
denominations of a like aggregate amount at the office or agency maintained by Trustee in
accordance with Section 5.7. Every Certificate presented or surrendered for
registration of transfer or exchange shall be accompanied by a written instrument of transfer duly executed by the
Holder and in a form satisfactory to Trustee. No service charge shall be made for any registration
of transfer or exchange of Certificates, but Trustee may require payment of a sum sufficient to
cover any tax or governmental charge that may be imposed in connection with any transfer or
exchange of Certificates. All Certificates surrendered for

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registration of transfer or exchange
shall be cancelled and disposed of in accordance with the customary procedures of Trustee.

          The Class B Certificates and any beneficial interest in such Class B Certificates may not be
acquired (a) with the assets of an employee benefit plan (as defined in Section 3(3) of ERISA) that
is subject to the provisions of Title I of ERISA, (b) by a plan described in Section 4975(e)(1) of
the Code or (c) by any entity whose underlying assets include plan assets by reason of a plan’s
investment in the entity. By accepting and holding a Class B Certificate or interest therein, the
Holder thereof or Class B Certificate Owner thereof shall be deemed to have represented and
warranted that it is not subject to the foregoing limitation.

          The preceding provisions of this Section 5.3 notwithstanding, Trustee shall not make and need
not register any transfer or exchange of Certificates for a period of fifteen (15) days preceding
any Distribution Date for any payment with respect to the Certificates.

          Section 5.4 Mutilated, Destroyed, Lost or Stolen Certificates. If (a) any mutilated Class A
Certificate or Class B Certificate shall be surrendered to Trustee, or if Trustee shall receive
evidence to its satisfaction of the destruction, loss or theft of any Class A Certificate or Class
B Certificate and (b) there shall be delivered to Trustee such security or indemnity as may be
required to save Trustee harmless, then in the absence of notice that such Class A
Certificate or Class B Certificate shall have been acquired by a bona fide purchaser, Trustee
shall execute, authenticate and deliver, in exchange for or in lieu of any such mutilated,
destroyed, lost or stolen Class A Certificate or Class B Certificate, a new Class A Certificate or
Class B Certificate of like tenor and denomination. In connection with the issuance of any new
Certificate under this Section 5.4, Trustee may require the payment of a sum sufficient to cover
any tax or other governmental charge that may be imposed in connection herewith. Any replacement
Certificate issued pursuant to this Section 5.4 shall constitute conclusive evidence of ownership
in the Trust, as if originally issued, whether or not the lost, stolen or destroyed Certificate
shall be found at any time.

          Section 5.5 Persons Deemed Owners. Prior to due presentation of a Certificate for
registration of transfer, Trustee may treat the Person in whose name any Certificate shall be
registered as the owner of such Certificate for the purpose of receiving distributions pursuant to
Section 4.5 and for all other purposes, and Trustee shall not be bound by any notice to the
contrary.

          Section 5.6 Access to List of Holders’ Names and Addresses. Trustee shall furnish or cause to
be furnished to Servicer, within fifteen days after receipt by Trustee of a request therefor from
Servicer in writing, in such form as Servicer may reasonably require, a list of the names and
addresses of the Holders as of the most recent Record Date. If Definitive Certificates have been
issued, Trustee, upon written request of (a) three or more Holders or (b) one or more Holders
evidencing not less than 25% of the aggregate outstanding principal balance of the Certificates,
will, within five Business Days after the receipt of such request, afford such Holders access
during normal business hours to the most current list of Holders for purposes of

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communicating with
other Holders with respect to their rights under the Agreement. Each Holder, by receiving and
holding a Certificate, shall be deemed to have agreed not to hold Seller, Servicer or Trustee
accountable by reason of the disclosure of such Holder’s name and address, regardless of the source
from which such information was derived.

          Section 5.7 Maintenance of Office or Agency. Trustee shall maintain, or cause to be
maintained, at its expense, in _________, an office or agency where Certificates may be surrendered
for registration of transfer or exchange and where notices and demands to or upon Trustee in
respect of the Certificates and this Agreement may be served. Trustee initially designates its
office located at _________ for such purposes. Trustee shall give prompt written notice to Servicer
and to Holders of any change in the location of any such office or agency.

          Section 5.8 Book Entry Certificates. Upon original issuance, the Class A Certificates and the
Class B Certificates, other than the Class A Certificate representing the residual amount of the
Original Class A Certificate Balance and the Class B Certificate representing the residual amount
of the Original Class B Certificate Balance, which shall be issued upon the written order of
Seller, shall be issued in the form of one or more typewritten Certificates representing the Book
Entry Certificates, to be delivered to the initial Clearing Agency, by, or on behalf of, Seller.
Such Certificates shall initially be registered on the Certificate Register in the name of CEDE &
Co., the nominee of the initial Clearing Agency, and no Certificate Owner will receive a Definitive
Certificate representing such Certificate Owner’s
interest in the Class A Certificates or the Class B Certificates, as the case may be, except
as provided in Section 5.10. Unless and until definitive, fully registered Certificates
(“Definitive Certificates”) have been issued to the Holders pursuant to Section 5.10:

     (a) the provisions of this Section 5.8 shall be in full force and effect;

     (b) Seller, Servicer and Trustee may deal with the Clearing Agency for all
purposes (including the making of distributions on the Certificates and the taking
of actions by the Holders) as the authorized representative of the Certificate
Owners;

     (c) to the extent that the provisions of this Section 5.8 conflict with any
other provisions of this Agreement, the provisions of this Section 5.8 shall
control;

     (d) the rights of Certificate Owners shall be exercised only through the
Clearing Agency and shall be limited to those established by law, the rules,
regulations and procedures of the Clearing Agency and agreements between such
Certificate Owners and the Clearing Agency and all references in this Agreement to
actions by Holders shall refer to actions taken by the Clearing Agency upon
instructions from the Clearing Agency Participants, and all references in this
Agreement to distributions, notices, reports and statements to Holders shall refer
to distributions, notices, reports and statements to the

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Clearing Agency or its
nominee, as registered holder of the Certificates, as the case may be, for
distribution to Certificate Owners in accordance with the rules, regulations and
procedures of the Clearing Agency; and

     (e) pursuant to the Depository Agreement, the initial Clearing Agency will
make book-entry transfers among the Clearing Agency Participants and receive and
transmit distributions of principal and interest on the Certificates to the
Clearing Agency Participants, for distribution by such Clearing Agency Participants
to the Certificate Owners or their nominees.

          For purposes of any provision of this Agreement requiring or permitting actions with the
consent of, or at the direction of, Holders of Certificates evidencing specified percentages of the
aggregate outstanding principal balance of such Certificates, such direction or consent may be
given by Certificate Owners having interests in the requisite percentage, acting through the
Clearing Agency.

          Section 5.9 Notices to Clearing Agency. Whenever notice or other communication to the Holders
is required under this Agreement unless and until Definitive Certificates shall have been issued to
Certificate Owners pursuant to Section 5.10, Trustee shall give all such notices and communications
specified herein to be given to Holders to the Clearing Agency.

          Section 5.10 Definitive Certificates. If (a) (i) Servicer advises Trustee in writing that the
Clearing Agency is no longer willing or able properly to discharge its responsibilities under the
Depository Agreement and (ii) Trustee or Servicer is unable to locate a qualified successor, (b)
Servicer, at its option, advises Trustee in writing that it elects to terminate the book-entry
system through the Clearing Agency or (c) after the occurrence of a Servicer Termination Event,
Certificate Owners representing in the aggregate not less than a majority of the aggregate
outstanding principal balance of the Certificates, advise Trustee and the Clearing Agency through
the Clearing Agency Participants in writing that the continuation of a book-entry system through
the Clearing Agency is no longer in the Certificate Owners’ best interests, Trustee shall notify
the Clearing Agency which shall be responsible to notify the Certificate Owners of the occurrence
of any such event and of the availability of Definitive Certificates to Certificate Owners
requesting the same. Upon surrender to Trustee by the Clearing Agency of the Certificates
registered in the name of the nominee of the Clearing Agency, accompanied by re-registration
instructions from the Clearing Agency for registration, Trustee shall execute, on behalf of the
Trust, authenticate and deliver Definitive Certificates in accordance with such instructions.
Seller shall arrange for, and will bear all costs of, the printing and issuance of such Definitive
Certificates. Neither Seller, Servicer nor Trustee shall be liable for any delay in delivery of
such instructions and may conclusively rely on, and shall be protected in relying on, such
instructions. Upon the issuance of Definitive Certificates, Trustee shall recognize the Holders of
the Definitive Certificates as Holders hereunder.

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ARTICLE VI

SELLER.

          Section 6.1 Representations and Warranties of Seller. Seller makes the following
representations and warranties, on which Trustee relies in accepting the Receivables and the other
Trust Property in trust and executing and authenticating the Certificates. Such representations
are made as of the execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Receivables and the other Trust Property to the Trust.

     (a) Organization and Good Standing. Seller has been duly organized and is
validly existing as a Delaware limited liability company in good standing under the
laws of the State of Delaware, with the power and authority to own its properties
and to conduct its business as such properties are presently owned and such
business is presently conducted and had at all relevant times, and has, full power,
authority and legal right to acquire, own and sell the Receivables and the other
Trust Property.

     (b) Power and Authority. Seller has the power, authority and legal right to
execute and deliver this Agreement and the Related Agreements to which it is a
party and to carry out their respective terms and to sell and assign the property
to be sold and assigned to and deposited with Trustee as Trust Property; and the
execution, delivery and performance of this Agreement and the Related Agreements to
which it is a party have been duly authorized by Seller by all necessary limited
liability company action.

     (c) No Consent Required. No approval, authorization, consent, license or
other order or action of, or filing or registration with, any governmental
authority, bureau or agency is required in connection with the execution, delivery
or performance of this Agreement or the Related Agreements to which it is a party
or the consummation of the transactions contemplated hereby or thereby, other than
(i) as may be required under the blue sky or securities laws of any State or the
Securities Act of 1933, as amended, and (ii) the filing of UCC financing
statements.

     (d) Valid Sale; Binding Obligation. Seller intends this Agreement to effect a
valid sale, transfer, and assignment of the Receivables and the other Trust
Property conveyed by Seller to the Trust hereunder, enforceable against creditors
of and purchasers from Seller; and each of this Agreement and the Related
Agreements to which it is a party constitutes a legal, valid and binding obligation
of Seller, enforceable against Seller in accordance with its respective terms,
subject, as to enforceability, to applicable bankruptcy, insolvency,
reorganization, conservatorship, receivership, liquidation and other similar laws

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affecting enforcement of the rights of creditors generally and to equitable
limitations on the availability of specific remedies.

     (e) No Violation. The execution, delivery and performance by Seller of this
Agreement and the Related Agreements to which it is a party and the consummation of
the transactions contemplated hereby and thereby will not conflict with, result in
any material breach of any of the terms and provisions of, constitute (with or
without notice or lapse of time) a material default under or result in the creation
or imposition of any Lien upon any of its material properties pursuant to the terms
of, (i) the organic documents of Seller, (ii) any material indenture, contract,
lease, mortgage, deed of trust or other instrument or agreement to which Seller is
a party or by which Seller is bound, or (iii) any law, order, rule or regulation
applicable to Seller of any federal or state regulatory body, any court,
administrative agency, or other governmental instrumentality having jurisdiction
over Seller.

     (f) No Proceedings. There are no proceedings or investigations pending, or,
to the knowledge of Seller, threatened, before any court, regulatory body,
administrative agency, or other tribunal or governmental instrumentality having
jurisdiction over Seller or its properties: (i) asserting the invalidity of this
Agreement or any Related Agreement, (ii) seeking to prevent the issuance of the
Certificates or the consummation of any of the transactions contemplated by this
Agreement or any Related Agreement, (iii) seeking any determination or ruling that
might materially and adversely affect the performance by Seller of its obligations
under, or the validity or enforceability of, this Agreement or any Related
Agreement or (iv) that may materially and adversely affect the federal or state
income, excise, franchise or similar tax attributes of the Certificates.

     (g) Chief Executive Office. The chief executive office of Seller is
                    .

          Section 6.2 Merger or Consolidation of, or Assumption of the Obligations of, Seller. Any
Person (a) into which Seller may be merged or consolidated, (b) that may result from any merger,
conversion or consolidation to which Seller is a party, or (c) that may succeed by purchase and
assumption to all or substantially all of the business of Seller, where Seller in any of the
foregoing cases is not the surviving entity, which corporation or other entity shall execute an
agreement of assumption to perform every obligation of Seller under this Agreement, shall be the
successor to Seller hereunder without the execution or filing of any document or any further act by
any of the parties to this Agreement; provided that (x) Servicer shall have delivered to Trustee an
Officer’s Certificate and an Opinion of Counsel each stating that such merger, conversion,
consolidation or succession and such agreement of assumption comply with this Section, and (y)
Servicer shall have delivered to Trustee an Opinion of Counsel either (A) stating that, in the
opinion of such counsel, all financing statements and continuation statements and amendments
thereto have been executed and filed that are necessary fully to preserve and

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protect the interest
of Trustee in the Receivables, and reciting the details of such filings, or (B) stating that, in
the opinion of such counsel, no such action shall be necessary to fully preserve and protect such
interest. Seller shall promptly inform Trustee and each Rating Agency of any
such merger, conversion, consolidation or purchase and assumption, where Seller is not the
surviving entity.

          Section 6.3 Limitation on Liability of Seller and Others. Seller and any director or officer
or employee or agent of Seller may rely in good faith on the advice of counsel or on any document
of any kind, prima facie properly executed and submitted by any Person respecting any matters
arising under this Agreement or any Related Agreement (provided that such reliance shall not limit
in any way Seller’s obligations under Section 3.2). Seller shall not be under any obligation to
appear in, prosecute or defend any legal action that shall not be incidental to its obligations
under this Agreement, and that in its opinion may involve it in any expense or liability.

ARTICLE VII

SERVICER.

          Section 7.1 Representations and Warranties of Servicer. Servicer makes the following
representations and warranties on which Trustee relies in accepting the Receivables and the other
Trust Property in trust and in authenticating the Certificates. These representations are made as
of the Closing Date, but shall survive the sale, transfer and assignment of the Receivables and the
other Trust Property to the Trust.

     (a) Organization and Good Standing. Servicer has been duly organized and is
validly existing as a corporation in good standing under the laws of the State of
Delaware, with the power and authority to own its properties and to conduct its
business as such properties are presently owned and such business is presently
conducted, and had at all relevant times, and shall have, the power, authority and
legal right to service the Receivables and the other Trust Property.

     (b) Due Qualification. Servicer shall be duly qualified to do business as a
foreign corporation in good standing, and shall have obtained all necessary
licenses and approvals in all jurisdictions in which the ownership or lease of
property or the conduct of its business (including the servicing of the Receivables
as required by this Agreement) shall require such qualifications.

     (c) Power and Authority. Servicer has the power, authority and legal right to
execute and deliver this Agreement and the Related Agreements to which it is a
party and to carry out their respective terms; and the execution, delivery and
performance of this Agreement and the Related Agreements to

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which it is a party
have been duly authorized by Servicer by all necessary corporate action.

     (d) No Consent Required. No approval, authorization, consent, license or
other order or action of, or filing or registration with, any
governmental authority, bureau or agency is required in connection with the
execution, delivery or performance of this Agreement, the Related Agreements to
which it is a party or the consummation of the transactions contemplated hereby or
thereby, other than the filing of UCC financing statements.

     (e) Binding Obligation. Each of this Agreement and the Related Agreements to
which it is a party constitutes a legal, valid and binding obligation of Servicer,
enforceable against Servicer in accordance with its respective terms, subject, as
to enforceability, to applicable bankruptcy, insolvency, reorganization,
conservatorship, receivership, liquidation and other similar laws affecting
enforcement of the rights of creditors of banks generally and to equitable
limitations on the availability of specific remedies.

     (f) No Violation. The execution, delivery and performance by Servicer of this
Agreement and the Related Agreements to which it is a party and the consummation of
the transactions contemplated hereby and thereby will not conflict with, result in
any material breach of any of the terms and provisions of, constitute (with or
without notice or lapse of time) a material default under, or result in the
creation or disposition of any Lien upon any of its material properties pursuant to
the terms of, (i) the articles of association or bylaws of Servicer, (ii) any
material indenture, contract, lease, mortgage, deed of trust or other instrument or
agreement to which Servicer is a party or by which Servicer is bound, or (iii) any
law, order, rule or regulation applicable to Servicer of any federal or state
regulatory body, any court, administrative agency, or other governmental
instrumentality having jurisdiction over Servicer.

     (g) No Proceedings. There are no proceedings or investigations pending, or,
to Servicer’s knowledge, threatened, before any court, regulatory body,
administrative agency, or tribunal or other governmental instrumentality having
jurisdiction over Servicer or its properties: (i) asserting the invalidity of this
Agreement, any Related Agreement or the Certificates, (ii) seeking to prevent the
issuance of the Certificates or the consummation of any of the transactions
contemplated by this Agreement or any Related Agreement, (iii) seeking any
determination or ruling that might materially and adversely affect the performance
by Servicer of its obligations under, or the validity or enforceability of, this
Agreement, any Related Agreement or the Certificates, or (iv) that may materially
and adversely affect the federal or state income, excise, franchise or similar tax
attributes of the Certificates.

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          Section 7.2 Indemnities of Servicer. (a) Servicer shall be liable in accordance herewith
only to the extent of the obligations specifically undertaken by Servicer under this Agreement.

     (b) Servicer shall indemnify, defend and hold harmless Trustee, Seller, the
Holders and any of the officers, directors, employees and agents of
Trustee or Seller from any and all costs, expenses, losses, claims, damages
and liabilities (including reasonable attorneys’ fees and expenses) to the extent
arising out of, or imposed upon any such Person through, the gross negligence,
willful misfeasance or bad faith (other than errors in judgment) of Servicer in the
performance of its obligations and duties under this Agreement or in the
performance of the obligations and duties of any subservicer under any subservicing
agreement.

     (c) Servicer shall indemnify, defend and hold harmless Trustee and its
officers, directors, employees and agents from and against any taxes that may at
any time be asserted against any such Person with respect to the transactions
contemplated in this Agreement or in the other Related Agreements, including any
sales, gross receipts, general corporation, tangible or intangible personal
property, privilege, or license taxes, or any taxes of any kind which may be
asserted (but not including any Federal or other income taxes arising out of
transactions contemplated by this Agreement and the other Related Agreements)
against the Trust, and costs and expenses in defending against the same.

     (d) Servicer shall indemnify, defend and hold harmless Trustee, Seller and the
Holders or any of the officers, directors, employees and agents of Trustee or
Seller from any and all costs, expenses, losses, claims, damages and liabilities
(including reasonable attorneys’ fees and expenses) to the extent arising out of or
imposed upon any such Person as a result of any compensation payable to any
subcustodian or subservicer (including any fees payable in connection with the
release of any Receivable File from the custody of such subservicer or in
connection with the termination of the servicing activities of such subservicer
with respect to any Receivable) whether pursuant to the terms of any subservicing
agreement or otherwise.

     (e) Servicer shall indemnify, defend and hold harmless Trustee, Seller and the
Holders or any of the directors, officers, employees and agents of Trustee and
Seller from and against any and all costs, expenses, losses, damages, claims and
liabilities, including reasonable fees and expenses of counsel and expenses of
litigation, arising out of or resulting from the use, ownership, or operation by
Servicer or any Affiliate thereof of any Financed Vehicle.

Indemnification under this Section shall survive the resignation or removal of Trustee and the
termination of this Agreement and shall include reasonable fees and expenses of counsel and

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other
expenses of litigation. If Servicer shall have made any indemnity payments pursuant to this
Section and the Person to or on behalf of whom such payments are made thereafter shall collect any
of such amounts from others, such Person shall promptly repay such amounts to Servicer, without
interest.

          Section 7.3 Merger or Consolidation of or Assumption of the Obligations of Servicer. Any
corporation or other entity (a) into which Servicer may be merged or
consolidated, (b) that may result from any merger, conversion, or consolidation to which
Servicer is a party, (c) that may succeed by purchase and assumption to all or substantially all of
the business of Servicer or (d) 50% of the voting stock of which is owned directly or indirectly by
VW Credit, where, in the case of clauses (a), (b) and (c), Servicer is not the surviving entity,
which corporation or other entity in any of the foregoing cases shall execute an agreement of
assumption to perform every obligation of Servicer under this Agreement, shall be the successor to
Servicer under this Agreement without any further act on the part of any of the parties to this
Agreement; provided that, unless VW Credit is the surviving party to such transaction (x) Servicer
shall have delivered to Trustee an Officer’s Certificate and an Opinion of Counsel each stating
that such merger, conversion, consolidation or succession and such agreement of assumption comply
with this Section, and (y) Servicer shall have delivered to Trustee an Opinion of Counsel either
(A) stating that, in the opinion of such counsel, all financing statements and continuation
statements and amendments thereto have been executed and filed that are necessary fully to preserve
and protect the interest of Trustee in the Receivables, and reciting the details of such filings,
or (B) stating that, in the opinion of such counsel, no such action shall be necessary to fully
preserve and protect such interest. Servicer shall promptly inform Trustee and each Rating Agency
of any such merger, conversion, consolidation or purchase and assumption where Servicer is not the
surviving entity.

          Section 7.4 Limitation on Liability of Servicer and Others. Neither Servicer nor any of its
directors, officers, employees or agents shall be under any liability to the Trust or the Holders,
except as provided under this Agreement, for any action taken or for refraining from the taking of
any action by Servicer or any subservicer pursuant to this Agreement or for errors in judgment;
provided that this provision shall not protect Servicer or any such Person against any liability
that would otherwise be imposed by reason of willful misfeasance, bad faith or gross negligence in
the performance of duties (except for errors in judgment) or by reason of reckless disregard of
obligations and duties under this Agreement. Servicer or any subservicer and any of their
respective directors, officers, employees or agents may rely in good faith on any document of any
kind prima facie properly executed and submitted by any Person respecting any matters arising under
this Agreement.

          Except as provided in this Agreement, Servicer shall not be under any obligation to appear in,
prosecute or defend any legal action that shall be incidental to its duties to service the
Receivables in accordance with this Agreement, and that in its opinion may involve it in any
expense or liability; provided that Servicer may (but shall not be required to) undertake any
reasonable action that it may deem necessary or desirable in respect of this Agreement and the
Related Agreements to protect the interests of the Holders under this Agreement and the Related

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Agreements. In such event, the legal expense and costs of such action and any liability resulting
therefrom shall be expenses, costs and liabilities of the Servicer.

          Section 7.5 VW Credit, Inc. Not To Resign as Servicer. Subject to the provisions of Section
7.3, VW Credit, Inc. hereby agrees not to resign from the obligations and duties hereby imposed on
it as Servicer under this Agreement except upon determination that the performance of its duties
hereunder shall no longer be permissible under applicable law or if such resignation is required by
regulatory authorities. Notice of any such determination
permitting the resignation of VW Credit, Inc. as Servicer shall be communicated to Trustee at
the earliest practicable time (and, if such communication is not in writing, shall be confirmed in
writing at the earliest practicable time) and any such determination shall be evidenced by an
Opinion of Counsel to such effect delivered to Trustee concurrently with or promptly after such
notice. No such resignation shall become effective until the earlier of Trustee or a successor
Servicer having assumed the responsibilities and obligations of the resigning Servicer in
accordance with Section 8.2 or the date upon which any regulatory authority requires such
resignation.

          Section 7.6 Servicer May Own Certificates. Servicer, and any Affiliate of Servicer, may, in
its individual or any other capacity, become the owner or pledgee of Certificates with the same
rights as it would have if it were not Servicer or an Affiliate thereof, except as otherwise
provided in the definition of “Holder”, “Class A Holder” and “Class B Holder” in Section 1.1.
Certificates so owned by or pledged to Servicer or such Affiliate shall have an equal and
proportionate benefit under the provisions of this Agreement, without preference, priority or
distinction as among all of the Certificates, except as otherwise provided in the definitions of
“Class A Holder” and “Class B Holder”.

          Section 7.7 Existence. Subject to the provisions of Section 7.3, during the term of this
Agreement, VW Credit, Inc. will keep in full force and effect its existence, rights and franchises
as a corporation under the laws of the jurisdiction of its organization.

ARTICLE VIII

SERVICING TERMINATION.

          Section 8.1 Servicer Termination Events. (a) Any one of the following events shall
constitute a “Servicer Termination Event”:

(i) any failure by Servicer to deliver to Trustee a Servicer’s Report for
any Collection Period, which failure shall continue beyond the related
Deposit Date;

(ii) any failure by Servicer to deliver to any Account or the Reserve
Account any payment or deposit required to be so delivered or paid under the
terms of the Certificates and this Agreement, or to direct Trustee to

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make
any required distribution from any Account or the Reserve Account, which
failure shall continue unremedied for a period of five Business Days after
written notice is received from the Trustee by Servicer or after discovery
of such failure by Servicer (or, in the case of a payment or deposit to be
made no later than a Deposit Date immediately preceding a Distribution Date,
the failure to make such payment or deposit by such Distribution Date);

(iii) any failure on the part of Servicer to duly observe or to perform in
any material respect any other covenants or agreements set forth in the
Certificates or in this Agreement, which failure shall (A) materially and
adversely affect the rights of Holders (which determination shall be made
without regard to whether funds are available to the Holders pursuant to the
Reserve Account) and (B) continue unremedied for a period of 60 days after
the date on which written notice of such failure, requiring the same to be
remedied, shall have been given (1) to Servicer by Trustee, or (2) to
Trustee and Servicer by the Holders of Certificates representing not less
than 25% of the outstanding principal amount of the Certificates (or for
such longer period, not in excess of 120 days, as may be reasonably
necessary to remedy such default; provided that such default is capable of
remedy within 120 days and Servicer delivers an Officer’s Certificate to
Trustee to such effect and to the effect that Servicer has commenced or will
promptly commence, and will diligently pursue, all reasonable efforts to
remedy such default);

(iv) the entry of a decree or order by a court or agency or supervisory
authority of competent jurisdiction for the appointment of a conservator,
receiver, liquidator or trustee for Servicer, Seller, Transferor, or any of
their respective successors, in any bankruptcy, receivership,
conservatorship, insolvency or similar proceedings, or for the winding up or
liquidation of its affairs, and any such decree or order continues unstayed
and in effect for a period of 60 consecutive days; or

(v) the consent by Servicer, Seller, Transferor, or any of their respective
successors, to the appointment of a conservator, receiver, liquidator or
trustee in any bankruptcy, receivership, conservatorship, insolvency or
similar proceedings of or relating to such Person or relating to
substantially all of its property, the admission in writing by such Person
of its inability to pay its debts generally as they become due, the filing
by such Person of a petition to take advantage of any applicable bankruptcy,
receivership, conservatorship, insolvency or similar statute, the making by
such Person of an assignment for the benefit of its creditors or the
voluntary suspension by such Person of payment of its obligations.

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Upon the occurrence of any Servicer Termination Event, and so long as a Servicer Termination Event
shall not have been remedied, either Trustee, or the Majority Holders, by notice then given in
writing to Servicer, may terminate all of the rights and obligations of Servicer (other than the
obligations set forth in Section 7.2) under this Agreement. On or after the receipt by Servicer of
such written notice, all authority and power of Servicer under this Agreement, whether with respect
to the Certificates or the Trust Property or otherwise, shall pass to and be vested in Trustee or
such successor Servicer as may be appointed under Section 8.2 pursuant to this Section 8.1; and
thereupon Trustee shall be authorized and empowered to execute and deliver, on behalf of Servicer,
as attorney-in-fact or otherwise, any and all documents and other instruments,
and to do or accomplish all other acts or things necessary or appropriate to effect the purposes of
such notice of termination, whether to complete the transfer and endorsement of the Receivable
Files or the Physical Damage Insurance Policies, the certificates of title to the Financed
Vehicles, or otherwise. Servicer shall cooperate with Trustee or any successor Servicer in
effecting the termination of its responsibilities and rights as Servicer under this Agreement,
including the transfer to Trustee or any successor Servicer for administration of all cash amounts
that are at the time held by Servicer for deposit, shall have been deposited by Servicer in the
Collection Account, or thereafter shall be received with respect to a Receivable, all Receivable
Files and all information or documents that Trustee or such successor Servicer may require. In
addition, Servicer shall transfer its electronic records relating to the Receivables to the
successor Servicer in such electronic form as the successor Servicer may reasonably request and
shall transfer to the successor Servicer all other records, correspondence and documents necessary
for the continued servicing of the Receivables in the manner and at such times as the successor
Servicer shall reasonably request. All reasonable out-of-pocket costs and expenses incurred by the
successor Servicer in connection with the transfer of servicing shall be paid by the predecessor
Servicer upon presentation of reasonable documentation of such costs and expenses.

     (b) If any of the foregoing Servicer Termination Events occur, Trustee shall
have no obligation to notify Holders or any other Person of such occurrence prior
to the continuance of such event through the end of any cure period specified in
Section 8.1(a).

          Section 8.2 Trustee to Act; Appointment of Successor Servicer. Upon Servicer’s resignation
pursuant to Section 7.5 or upon Servicer’s receipt of notice of termination as Servicer pursuant to
Section 8.1, Trustee shall be the successor in all respects to Servicer in its capacity as Servicer
under this Agreement, and shall be subject to all the responsibilities, duties and liabilities
relating thereto placed on Servicer by the terms and provisions of this Agreement, except that
Trustee, when acting as successor Servicer, shall not be obligated to purchase Receivables pursuant
to Section 3.7 unless the obligation to repurchase arose after the date of the notice of
termination given to Servicer pursuant to Section 8.1, and neither Trustee nor any successor
Servicer shall be liable for any acts or omissions of the terminated Servicer or for any breach by
such Servicer of any of its representations or warranties contained herein or in any related
documents or agreements. As compensation therefor, Trustee shall be entitled to the same Servicing
Fees (whether payable out of the Collection Account or otherwise) and Supplemental Servicing Fees
as Servicer would have been entitled to under this Agreement if no

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such notice of termination or
resignation had been given. Notwithstanding the above, Trustee may appoint, or petition a court of
competent jurisdiction to appoint, an Eligible Servicer as the successor to the terminated Servicer
under this Agreement; provided that Trustee shall continue to be the successor to Servicer until
another successor Servicer shall have assumed the responsibilities and obligations of Servicer. In
connection with such appointment, Trustee may make such arrangements for the compensation of such
successor Servicer out of payments on Receivables as it and such successor shall agree, which shall
in no event be greater than the Servicing Fees and Supplemental Servicing Fees payable to VW
Credit, Inc. as Servicer hereunder. Trustee and such successor shall take such action, consistent
with this Agreement, as shall be necessary to effectuate any such succession. No Servicer shall
resign or be relieved of
its duties under this Agreement until a newly appointed Servicer shall have assumed the
responsibilities and obligations of the terminated Servicer under this Agreement.

          Section 8.3 Effect of Servicing Transfer. (a) After the transfer of servicing hereunder,
Trustee or successor Servicer shall notify Obligors to make directly to the successor Servicer
payments that are due under the Receivables after the effective date of such transfer.

     (b) Except as provided in Sections 7.2 and 9.8 after the transfer of servicing
hereunder, the predecessor Servicer shall have no further obligations with respect
to the management, administration, servicing, custody or collection of the
Receivables and the successor Servicer shall have all of such obligations, except
that the predecessor Servicer will transmit or cause to be transmitted directly to
the successor Servicer for its own account, promptly on receipt and in the same
form in which received, any amounts held by the predecessor Servicer (properly
endorsed where required for the successor Servicer to collect any such items)
received as payments upon or otherwise in connection with the Receivables and the
predecessor Servicer shall continue to cooperate with the successor Servicer by
providing information and in the enforcement of the Dealer Agreements and the
Physical Damage Insurance Policies.

     (c) A transfer of servicing hereunder shall not affect the rights and duties
of the parties hereunder other than those relating to the management,
administration, servicing, custody or collection of the Receivables and the other
Trust Property. The successor Servicer shall, upon its appointment pursuant to
Section 8.2 and as part of its duties and responsibilities under this Agreement,
promptly take all action it deems necessary or appropriate so that the predecessor
Servicer (in whatever capacity) is paid or reimbursed all amounts it is entitled to
receive under this Agreement on each Distribution Date subsequent to the date on
which it is terminated as Servicer hereunder. Without limiting the generality of
the foregoing, the predecessor Servicer will be entitled to receive all accrued and
unpaid Servicing Fees and Supplemental Servicing Fees through and including the
effective date of the termination of the predecessor Servicer.

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     (d) Any successor Servicer shall provide Seller with access to the Receivable
Files and to the successor Servicer’s records (whether written or automated) with
respect to the Receivable Files. Such access shall be afforded without charge, but
only upon reasonable request and during normal business hours at the offices of the
successor Servicer. Nothing in this Section shall affect the obligation of the
successor Servicer to observe any applicable law prohibiting disclosure of
information regarding the Obligors, and the failure of Servicer to provide access
to information as a result of such obligation shall not constitute a breach of this
Section.

          Section 8.4 Notification to Holders. Upon any notice of a Servicer Termination Event or upon
any termination of, or appointment of a successor to, Servicer
pursuant to this Article VIII, Trustee shall give prompt written notice thereof to Holders at
their respective addresses of record, and to each Rating Agency.

          Section 8.5 Waiver of Past Servicer Termination Events. The Majority Holders may, on behalf
of all Holders of Certificates, waive any Servicer Termination Event hereunder and its
consequences, except an event resulting from the failure to make any required deposits or payments
to the Collection Account in accordance with this Agreement. Upon any such waiver of a past
Servicer Termination Event, such event shall cease to exist and shall be deemed to have been
remedied for every purpose of this Agreement. No such waiver shall extend to any subsequent or
other event or impair any right arising therefrom, except to the extent expressly so waived.

          Section 8.6 Transfer of Accounts. Notwithstanding the provisions of Section 8.1, if any of
the Accounts or the Reserve Account is maintained with Servicer or an Affiliate of Servicer and a
Servicer Termination Event shall occur and be continuing, Servicer shall promptly, and in any event
within five Business Days, give notice to Trustee of such Servicer Termination Event, and Trustee,
within                      days after the receipt of such notice, shall establish new Eligible Deposit Accounts
conforming with the requirements of this Agreement and promptly shall transfer all funds in any
such Accounts or the Reserve Account to such new Eligible Deposit Accounts.

ARTICLE IX

TRUSTEE.

          Section 9.1 Acceptance by Trustee. Trustee hereby acknowledges its acceptance of all right,
title and interest in and to the Receivables and the other Trust Property conveyed by Seller
pursuant to this Agreement and hereby declares that Trustee holds and shall hold such right, title
and interest, upon the trust set forth in this Agreement.

          Section 9.2 Duties of Trustee. (a) Trustee, both prior to and after the curing of a Servicer
Termination Event, undertakes to perform only such duties as are specifically set forth

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in this
Agreement and no implied covenants or obligations shall be read into this Agreement against
Trustee. If a Servicer Termination Event, of which an Authorized Officer of Trustee has actual
knowledge, shall have occurred and shall not have been cured (the appointment of a successor
Servicer (including Trustee) to constitute a cure for the purposes of this Article), Trustee shall
exercise such of the rights and powers vested in it by this Agreement, and shall use the same
degree of care and skill in their exercise, as a prudent man would exercise or use under the
circumstances in the conduct of his own affairs; provided that if Trustee assumes the duties of
Servicer pursuant to Section 8.2, Trustee in performing such duties shall use the degree of skill
and attention required by Section 3.1.

     (b) Trustee, upon receipt of all resolutions, certificates, statements,
opinions, reports, documents, orders, or other instruments furnished to Trustee
that are required specifically to be furnished pursuant to any provision of this
Agreement, shall examine them to determine whether they conform to the
requirements of this Agreement.

     (c) No provision of this Agreement shall be construed to relieve Trustee from
liability for its own negligent action, its own negligent failure to act, its own
willful misfeasance or its own bad faith; provided that:

(i) Prior to the occurrence of a Servicer Termination Event, and after the
curing of all such Servicer Termination Events that may have occurred, the
duties and obligations of Trustee shall be determined solely by the express
provisions of this Agreement, Trustee shall not be liable except for the
performance of such duties and obligations as are specifically set forth in
this Agreement, no implied covenants or obligations shall be read into this
Agreement against Trustee, the permissible right of Trustee (solely in its
capacity as such) to do things enumerated in this Agreement shall not be
construed as a duty and, in the absence of bad faith on the part of Trustee,
or manifest error, Trustee (solely in its capacity as such) may conclusively
rely on the truth of the statements and the correctness of the opinions
expressed in any certificates or opinions furnished to Trustee and
conforming to the requirements of this Agreement;

(ii) Trustee shall not be personally liable for an error of judgment made in
good faith by an officer of Trustee, unless it shall be proved that Trustee
shall have been negligent in performing its duties in accordance with the
terms of this Agreement; and

(iii) Trustee shall not be personally liable with respect to any action
taken, suffered, or omitted to be taken in good faith in accordance with the
direction of the Majority Holders, as set forth in Section 8.1, relating to
the time, method and place of conducting any proceeding or any remedy

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available to Trustee, or exercising any trust or power conferred upon
Trustee, under this Agreement.

     (d) Except for the willful misfeasance, bad faith or negligence of Trustee,
Trustee shall not be required to expend or risk its own funds or otherwise incur
any financial liability in the performance of any of its duties hereunder, or in
the exercise of any of its rights or powers, if it shall have reasonable grounds
for believing that the repayment of such funds or indemnity satisfactory to it
against such risk or liability shall not be reasonably assured to it, and none of
the provisions contained in this Agreement shall in any event require Trustee to
perform, or be responsible for the manner of performance of, any of the obligations
of Servicer under this Agreement except during such time, if any, as Trustee shall
be the successor to, and be vested with the rights, duties,
powers and privileges of, Servicer in accordance with the terms of this
Agreement.

     (e) Except for actions expressly authorized by this Agreement, Trustee shall
take no action reasonably likely to impair the security interests created or
existing under any Receivable or Financed Vehicle or to impair the value of any
Receivable or Financed Vehicle.

     (f) Trustee shall have no power to vary the corpus of the Trust including (i)
accepting any substitute obligation for a Receivable initially assigned to Trustee
under this Agreement, (ii) adding any other investment, obligation or security, or
(iii) withdrawing any Receivable, except for a withdrawal permitted under this
Agreement.

          Section 9.3 Trustee’s Certificate. As soon as practicable after each Deposit Date on which
Receivables shall be assigned to Seller pursuant to Section 2.4 or 10.2 or to Servicer pursuant to
Section 3.7, as applicable, Trustee shall execute a certificate, prepared by Servicer, including
its date and the date of the Agreement, and accompanied by a copy of Servicer’s Report for the
related Collection Period. Trustee’s certificate shall operate, as of such Deposit Date, as an
assignment pursuant to Section 9.4.

          Section 9.4 Trustee’s Assignment of Purchased Receivables. With respect to all Receivables
repurchased by Servicer pursuant to Section 2.4 or Section 10.2, or purchased by Servicer pursuant
to Section 3.7 or Section 10.2, Trustee shall assign, without recourse, representation or warranty,
to Servicer, all of Trustee’s right, title and interest in and to such Receivables, and all
security and documents and all other Trust Property conveyed pursuant to Section 2.1 with respect
to such Receivables. Such assignment shall be a sale and assignment outright, and not for
security. If, in any enforcement suit or legal proceeding, it is held that Servicer, may not
enforce any such Receivable on the ground that it shall not be a real party in interest or a holder
entitled to enforce the Receivable, Trustee shall, at the expense of Servicer,

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take such steps as
Servicer, deems necessary to enforce the Receivable, including bringing suit in Trustee’s name or
the names of the Holders.

          Section 9.5 Certain Matters Affecting Trustee. Except as otherwise provided in Section 9.2:

     (a) Trustee may conclusively rely and shall be protected in acting or
refraining from acting upon, any resolution, certificate of auditors or accountants
or any other certificate, statement, instrument, opinion, report, notice, request,
direction, consent, order, appraisal, bond, note or other paper or document
believed by it to be genuine and to have been signed or presented by the proper
party or parties.

     (b) Trustee may consult with counsel knowledgeable in the area and any opinion
of Counsel shall be full and complete authorization and protection in
respect of any action taken or suffered or omitted by it under this Agreement
in good faith and in accordance with such written opinion of Counsel a copy of
which shall be provided to Seller and Servicer.

     (c) Trustee shall be under no obligation to exercise any of the rights or
powers vested in it by this Agreement, or to institute, conduct or defend any
litigation under this Agreement or in relation to this Agreement, at the request,
order or direction of any of the Holders pursuant to the provisions of this
Agreement, unless such Holders shall have offered to Trustee security or indemnity
satisfactory to Trustee against the costs, expenses, and liabilities that may be
incurred therein or thereby. Nothing contained in this Agreement, however, shall
relieve Trustee of the obligations, upon the occurrence of a Servicer Termination
Event that is not timely cured or waived pursuant to Section 8.5, to exercise such
of the rights and powers vested in it by this Agreement, and to use the same degree
of care and skill in their exercise as a prudent man would exercise or use under
the circumstances in the conduct of his own affairs; provided that if Trustee
assumes the duties of Servicer pursuant to Section 8.2, Trustee in performing such
duties shall use the degree of skill and attention required by Section 3.1.

     (d) Trustee shall not be personally liable for any action taken, suffered or
omitted by it in good faith and believed by it to be authorized or within the
discretion, rights or powers conferred upon it by this Agreement.

     (e) Prior to the occurrence of a Servicer Termination Event and after the
curing of all Servicer Termination Events that may have occurred, Trustee shall not
be bound to make any investigation into the facts of any matters stated in any
resolution, certificate, statement, instrument, opinion, report, notice, request,
consent, direction, order, approval, bond, note or other paper or

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document, unless
requested in writing so to do by the Majority Holders; provided that if the payment
within a reasonable time to Trustee of the costs, expenses, or liabilities likely
to be incurred by it in the making of an investigation requested by the Holders is,
in the opinion of Trustee, not reasonably assured to Trustee by the security
afforded to it by the terms of this Agreement, Trustee may require indemnity
satisfactory to it against such cost, expense, or liability as a condition to so
proceeding. The reasonable expense of every such examination shall be paid by
Servicer, or, if paid by Trustee, shall be reimbursed by Servicer upon demand.
Nothing in this clause (e) shall affect the obligation of Servicer to observe any
applicable law prohibiting disclosure of information regarding the Obligors;
provided further, that Trustee shall be entitled to make such further inquiry or
investigation into such facts or matter as it may reasonably see fit, and if
Trustee shall determine to make such further inquiry or investigation it shall be
entitled to examine the books and records of Servicer, personally or by agent or
attorney, at the sole cost and expense of Servicer.

     (f) Trustee may execute any of the trusts or powers hereunder or perform any
duties under this Agreement either directly or by or through agents, attorneys,
nominees or a custodian, and shall not be liable for the acts of such agents,
attorney, nominees or custodians except for (i) acts of                      or any successor
agent carrying out Trustee’s obligations with respect to the preparation of
Servicer Reports and (ii) acts of any other agent, attorney, nominee or custodian
if (A) Trustee has not acted with due care in their appointment or (B) Seller has
not consented to their appointment.

     (g) Trustee shall not be required to make any initial or periodic examination
of any documents or records related to the Receivables or Financed Vehicles for the
purpose of establishing the presence or absence of defects, the compliance by
Seller with its representations and warranties or for any other purpose.

     (h) Trustee shall not be construed to be a guarantor of the performance of
Servicer, nor shall Trustee have any duty to monitor the performance of Servicer
other than as expressly stated in this Agreement.

     (i) Trustee shall not be required to take notice or be deemed to have notice
of any Servicer Termination Event hereunder, except a Servicer Termination Event
under Section 8.1(a)(i) or (ii), unless Trustee shall be specifically notified in
writing of such Servicer Termination Event by Servicer, Seller or any Holder. All
notices or other instruments required by this Agreement to be delivered to Trustee
shall be delivered at the Corporate Trust Office and, in the absence of such notice
so delivered, Trustee may conclusively assume there is no Servicer Termination
Event except as aforesaid.

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          Section 9.6 Trustee Not Liable for Certificates or Receivables. Trustee assumes no
responsibility for the correctness of the recitals contained herein and in the Certificates (other
than the certificate of authentication on the Certificates). Except as expressly provided herein,
Trustee makes no representations as to the validity or sufficiency of this Agreement or of the
Certificates (other than Trustee’s execution of, and the certificate of authentication on, the
Certificates), or of any Receivable or related document, or for the validity of the execution by
Seller and Servicer of this Agreement or of any supplements hereto or instruments of further
assurance, or for the sufficiency of the Trust Property hereunder, and Trustee shall not be bound
to ascertain or inquire as to the performance or observance of any covenants, conditions or
agreements on the part of Servicer under this Agreement except as herein set forth; but Trustee may
require Servicer to provide full information and advice as to the performance of the aforesaid
covenants, condition and agreements. Trustee (solely in its capacity as such) shall have no
obligation to perform any of the duties of Servicer, except as explicitly set forth in this
Agreement. Trustee shall have no liability in connection with compliance of Servicer with
statutory or regulatory requirements to the Receivables. Trustee shall not make or be deemed to
have made any representations or warranties with respect to the Receivables or the validity or
sufficiency of any assignment of the Receivables to the Trust or
Trustee. Trustee (solely in its capacity as such) shall at no time have any responsibility or
liability for, or with respect to, the legality, validity or enforceability of any security
interest in any Financed Vehicle or (prior to the time, if any, that Servicer is terminated as
custodian hereunder) any Receivable, or the perfection and priority of such a security interest or
the maintenance of any such perfection and priority, the efficacy of the Trust or its ability to
generate funds sufficient to provide for the payments to be distributed to Holders under this
Agreement, the existence, condition, location, and ownership of any Financed Vehicle, the existence
and enforceability of the Insurance Policies, the existence and contents of any Receivable or any
computer or other record thereof, the validity of the assignment of any Receivable to the Trust or
of any intervening assignment, the completeness of any Receivable, the performance or enforcement
of any Receivable, the compliance by Seller with any warranty or representation made under this
Agreement or in any related document and the accuracy, of any such warranty or representation,
prior to Trustee’s receipt of notice or other discovery of any noncompliance therewith or any
breach thereof, any investment of monies by Servicer or any loss resulting therefrom (it being
understood that Trustee shall remain responsible for any Trust Property that it may hold), the acts
or omissions of Seller, Servicer, or any Obligor, any action of Servicer taken in the name of
Trustee, or any action by Trustee taken at the instruction, of Servicer (provided that such
instruction is not in express violation of the terms and provisions of this Agreement); provided
that the foregoing shall not relieve Trustee of its obligation to perform its duties under this
Agreement. Except with respect to a claim based on the failure of Trustee to perform its duties
under this Agreement (whether in its capacity as Trustee or as successor Servicer) or based on
Trustee’s willful misconduct, negligence, or bad faith, or based on Trustee’s breach of a
representation and warranty contained in Section 9.14, no recourse shall be had to Trustee (whether
in its individual capacity or as Trustee) for any claim based on any provision of this Agreement,
the Certificates, or any
 Receivable or assignment thereof against Trustee in its individual
capacity; Trustee shall not have any personal obligation, liability, or

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duty whatsoever to any
Holder or any other Person with respect to any such claim. Trustee shall not be accountable for
the use or application by Seller of the proceeds of such Certificates, or for the use or
application of any funds paid to Servicer in respect of the Receivables prior to the time such
amounts are deposited in the Collection Account (whether or not the Collection Account is
maintained with Trustee). Trustee shall have no liability for any losses from the investment or
reinvestment in Eligible Investments made in accordance with Section 4.1.

          Section 9.7 Trustee May Own Certificates. Trustee in its individual or any other capacity may
become the owner or pledgee of Certificates with the same rights as it would have if it were not
Trustee.

          Section 9.8 Trustee’s Fees and Expenses. Servicer agrees to pay to Trustee, and Trustee shall
be entitled to, reasonable compensation (which shall not be limited by any provision of law in
regard to the compensation of a trustee of an express trust) for all services rendered by it in the
execution of the trusts created by this Agreement and in the exercise and performance of any of the
powers and duties under this Agreement as Trustee, and Servicer shall pay or reimburse Trustee upon
its request for all reasonable expenses (including expenses incurred in connection with notices or
other communications to Holders), disbursements and advances (including the reasonable compensation
and the reasonable expenses and
disbursements of its counsel and of all persons not regularly in its employ) incurred or made
by Trustee in accordance with any of the provisions of this Agreement (including the reasonable
fees and expenses of its agents, any co-trustee and counsel) or in defense of any action brought
against it in connection with this Agreement except any such expense, disbursement or advance as
may arise from its negligence, willful misfeasance, or bad faith. Servicer’s covenant to pay the
expenses, disbursements and advances provided for in the preceding sentence shall survive the
termination of this Agreement.

          Section 9.9 Eligibility Requirements for Trustee. Trustee shall at all times be organized and
doing business under the banking laws of the United States or of any state thereof, shall be
authorized under such laws to exercise corporate trust powers, shall have a consolidated net worth
of at least $50,000,000 and shall be subject to supervision or examination by federal or state
banking authorities. If Trustee shall publish reports of condition at least annually, pursuant to
law or to the requirements of the aforesaid supervising or examining authority, then for the
purpose of this Section 9.9, the consolidated net worth of such Trustee shall be deemed to be its
consolidated capital and surplus as set forth in its most recent consolidated report of condition
so published. In case at any time Trustee shall cease to be eligible in accordance with the
provisions of this Section 9.9, Trustee shall resign immediately in the manner and with the effect
specified in Section 9.10.

          Section 9.10 Resignation or Removal of Trustee. (a) Trustee may at any time resign and be
discharged from the trusts hereby created by giving 30 days’ prior written notice thereof to
Servicer. Upon receiving such notice of resignation, Servicer shall promptly appoint a successor
Trustee, by written instrument, in duplicate, one copy of which instrument shall be delivered to
the resigning Trustee and one copy to the successor Trustee. If no successor Trustee

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shall have
been so appointed and have accepted appointment within 30 days after the giving of such notice of
resignation, the resigning Trustee may petition any court of competent jurisdiction for the
appointment of a successor Trustee; provided, however, that such right to appoint or to petition
for the appointment of any such successor shall in no event relieve the resigning Trustee from any
obligations otherwise imposed on it under this Agreement and the Related Agreements until such
successor has in fact assumed such appointment.

     (b) If at any time Trustee shall cease to be eligible in accordance with the
provisions of Section 9.9 and shall fail to resign after written request therefor
by Servicer, or if at any time Trustee shall be legally unable to act, or shall be
adjudged bankrupt or insolvent, or a receiver, conservator or liquidator of Trustee
or of its property shall be appointed, or any public officer shall take charge or
control of Trustee or of its property or affairs for the purpose of rehabilitation,
conservation or liquidation, then Servicer may remove Trustee. If Trustee is
removed under the authority of the immediately preceding sentence, Servicer shall
promptly appoint a successor trustee by written instrument, in duplicate, one copy
of which instrument shall be delivered to Trustee so removed, the successor
Trustee, the Holders at their respective addresses of record and the Rating
Agencies.

     (c) Any resignation or removal of Trustee and appointment of a successor
Trustee pursuant to any of the provisions of this Section 9.10 shall not become
effective until acceptance of appointment by the successor Trustee pursuant to
Section 9.11.

     (d) The respective obligations of Seller and Servicer described in this
Agreement shall survive the removal or resignation of Trustee as provided in this
Agreement.

          Section 9.11 Successor Trustee. (a) Any successor Trustee appointed pursuant to Section 9.10
shall execute, acknowledge, and deliver to Servicer and to its predecessor Trustee an instrument
accepting such appointment under this Agreement, and thereupon the resignation or removal of the
predecessor Trustee shall become effective and such successor Trustee, without any further act,
deed or conveyance, shall become fully vested with all rights, powers, duties, and obligations of
its predecessor under this Agreement, with like effect as if originally named as Trustee. The
predecessor Trustee shall deliver to the successor Trustee all documents and statements held by it
under this Agreement, and Servicer and the predecessor Trustee shall execute and deliver such
instruments and do such other things as may reasonably be required for fully and certainly vesting
and confirming in the successor Trustee all such rights, powers, duties, and obligations.

     (b) No successor Trustee shall accept appointment as provided in this Section
9.11 unless at the time of such acceptance such successor Trustee shall be eligible
pursuant to Section 9.9.

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     (c) Upon acceptance of appointment by a successor Trustee pursuant to this
Section 9.11, Servicer shall mail notice of such acceptance by the successor
Trustee under this Agreement to all Holders at their respective addresses of record
and to the Rating Agencies. If Servicer shall fail to mail such notice within 10
days after acceptance of appointment by the successor Trustee, the successor
Trustee shall cause such notice to be mailed at the expense of Servicer.

     (d) No predecessor Trustee shall be liable for the acts or omissions of any
successor Trustee.

          Section 9.12 Merger or Consolidation of or Assumption of Obligations of Trustee. Any
corporation or banking association which is eligible to be a successor Trustee under Section 9.9
(a) into which Trustee may be merged or consolidated, (b) that may result from any merger,
conversion or consolidation to which Trustee shall be a party, or (c) that may succeed by purchase
and assumption to the business of Trustee, where Trustee is not the surviving entity, which
corporation or banking association executes an agreement of assumption to perform every obligation
of Trustee under this Agreement, shall be the successor of Trustee hereunder, without the execution
or filing of any instrument or any further act on the part of any of the parties hereto, anything
herein to the contrary notwithstanding. Trustee shall promptly
notify Servicer and each Rating Agency of any such merger, conversion, consolidation or
purchase and assumption where Trustee is not the surviving entity.

          Section 9.13 Appointment of Co-Trustee or Separate Trustee. (a) Notwithstanding any other
provisions of this Agreement, at any time, for the purpose of meeting any legal requirements of any
jurisdiction in which any part of the Trust Property or any Financed Vehicle may at the time be
located, Servicer and Trustee acting jointly shall have the power and shall execute and deliver all
instruments to appoint one or more Persons approved by Trustee to act as co-trustee, jointly with
Trustee, or separate trustee or separate trustees, of all or any part of the Trust, and to vest in
such Person, in such capacity and for the benefit of the Holders, such title to the Trust, or any
part thereof, and, subject to the other provisions of this Section 9.13, such powers, duties,
obligations, rights, and trusts as Servicer and Trustee may consider necessary or desirable. If
Servicer shall not have joined in such appointment within 15 days after the receipt by it of a
request so to do, or in case a Servicer Termination Event shall have occurred and be continuing,
Trustee alone shall have the power to make such appointment. No co-trustee or separate trustee
under this Agreement shall be required to meet the terms of eligibility as a successor trustee
pursuant to Section 9.9 and no notice to Holders of the appointment of any co-trustee or separate
trustee shall be required pursuant to Section 9.11. Notwithstanding the appointment of a co-trustee
or separate trustee hereunder, Trustee shall not be relieved of any of its obligations under this
Agreement.

     (b) Each separate trustee and co-trustee shall, to the extent permitted by
law, be appointed and act subject to the following provisions and conditions:

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(i) All rights, powers, duties, and obligations conferred or imposed upon
Trustee shall be conferred upon and exercised or performed by Trustee and
such separate trustee or co-trustee jointly (it being understood that such
separate trustee or co-trustee is not authorized to act separately without
Trustee joining in such act), except to the extent that under any law of any
jurisdiction in which any particular act or acts are to be performed
(whether as Trustee under this Agreement or as successor to Servicer under
this Agreement), Trustee shall be incompetent or unqualified to perform such
act or acts, in which event such rights, powers, duties, and obligations
(including the holding of title to the Trust Property or any portion thereof
in any such jurisdiction) shall be exercised and performed singly by such
separate trustee or co-trustee, but solely at the direction of Trustee.

(ii) No trustee under this Agreement shall be personally liable by reason of
any act or omission of any other trustee under this Agreement.

(iii) Servicer and Trustee acting jointly may at any time accept the
resignation of or remove any separate trustee or co-trustee.

     (c) Any notice, request or other writing given to Trustee shall be deemed to
have been given to each of the then separate trustees and co-trustees, as
effectively as if given to each of them. Every instrument appointing any separate
trustee or co-trustee shall refer to this Agreement and in particular to the
provisions of this Article. Each separate trustee and co-trustee, upon its
acceptance of the trusts conferred, shall be vested with the estates or property
specified in its instrument of appointment, either jointly with Trustee or
separately, as may be provided therein, subject to all the provisions of this
Agreement, specifically including every provision of this Agreement relating to the
conduct of, affecting the liability of, or affording protection to, Trustee. Each
such instrument shall be filed with Trustee and a copy thereof given to Servicer.

     (d) Any separate trustee or co-trustee may, at any time, appoint Trustee its
agent or attorney-in-fact with full power and authority, to the extent not
prohibited by law, to do any lawful act under or in respect of this Agreement on
its behalf and in its name. If any separate trustee or co-trustee shall die,
become incapable of acting, resign or be removed, all of its estates, properties,
rights, remedies and trusts shall vest in and be exercised by Trustee, to the
extent permitted by law, without the appointment of a new or successor trustee.
Trustee shall promptly notify Servicer and each Rating Agency of any appointment
made pursuant to this Section 9.13.

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          Section 9.14 Representations and Warranties of Trustee. Trustee makes the following
representations and warranties on which Seller, Servicer, and Holders may rely:

     (a) Organization and Good Standing. Trustee is a                     
duly organized, validly existing, and in good standing under the laws of
                    .

     (b) Power and Authority. Trustee has full power, authority and legal right to
execute, deliver, and perform this Agreement and the Related Agreements and has
taken all necessary action to authorize the execution, delivery, and performance by
it of this Agreement and the Related Agreements to which it is a party.

     (c) Enforceability. This Agreement and the Related Agreements to which it is
a party have been duly executed and delivered by Trustee and this Agreement and
such Related Agreements constitute legal, valid and binding obligations of Trustee
enforceable against Trustee in accordance with their respective terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
affecting the enforcement of creditors’ rights generally and except as such
enforceability may be limited by equitable limitations on the availability of
specific remedies.

     (d) No Consent Required. No approval, authorization, consent, license or
other order or action of, or filing or registration with, any governmental
authority, bureau or agency is required in connection with the execution, delivery
or performance by Trustee of this Agreement, the Related Agreements or the
consummation of the transactions contemplated hereby or thereby.

     (e) No Violation. The execution, delivery and performance by Trustee of this
Agreement and the Related Agreements and the consummation of the transactions
contemplated hereby and thereby will not conflict with, result in any breach of the
terms and provisions of, constitute (with or without notice or lapse of time) a
default under, or result in the creation or disposition of any Lien upon any of its
properties pursuant to the terms of, (i) the articles of association or by-laws of
Trustee, (ii) any indenture, contract, lease, mortgage, deed of trust or other
instrument or agreement to which Trustee is a party or by which Trustee is bound or
to which any of its properties are subject, or (iii) any law, order, rule or
regulation applicable to Trustee or its properties of any federal or state
regulatory body, any court, administrative agency or other governmental
instrumentality having jurisdiction over Trustee or any of its properties.

67

 

          Section 9.15 Reports by Trustee. Trustee shall provide to any Holder or Certificate Owner who
so requests in writing (addressed to the Corporate Trust Office) a copy of
any Servicer’s Report, the annual statement described in Section 3.10, and the annual
accountant’s examination described in Section 3.11. Trustee may require any Holder or Certificate
Owner requesting such report to pay a reasonable sum to cover the cost of Trustee’s complying with
such request.

          Section 9.16 Tax Returns. Servicer shall prepare or shall cause to be prepared any tax returns
on Form 1065 (or other applicable form) required to be filed by the Trust and shall remit such
returns to Trustee for signature at least five days before such returns are due to be filed.
Trustee, upon request, will furnish Servicer with all such information actually known to an
Authorized Officer of Trustee as may be reasonably required in connection with the preparation of
all tax returns of the Trust, and shall, upon request, execute such returns. Servicer shall
prepare the tax returns of the Trust in accordance with the Code and any regulations (including, to
the extent applicable by their terms, proposed regulations) thereunder.

          Section 9.17 Trustee May Enforce Claims Without Possession of Certificates. All rights of
action and claims under this Agreement or the Certificates may be prosecuted and enforced by
Trustee without the possession of any of the Certificates or the production thereof in any
proceeding relating thereto, and any such proceeding instituted by Trustee shall be brought in its
own name as trustee. Any recovery of judgment shall, after provision for the payment of the
reasonable compensation, expenses, disbursements and advances of Trustee, its agents and counsel,
be for the ratable benefit of the Holders in respect of which such judgment has been obtained.

ARTICLE X

TERMINATION.

          Section 10.1 Termination of the Trust. (a) The Trust, and the respective obligations and
responsibilities of Seller, Servicer and Trustee hereunder, shall terminate (except as otherwise
expressly provided herein) upon the earliest of: (i) the Distribution Date next succeeding the
purchase by Servicer at its option, pursuant to Section 10.2, of the Receivables (other than
Defaulted Receivables) remaining in the Trust, (ii) the payment to Holders of all amounts required
to be paid to them pursuant to this Agreement or (iii) the Distribution Date next succeeding the
month which is six months after the maturity or the liquidation of the last Receivable held in the
Trust and the disposition of any amounts received upon liquidation of any property remaining in the
Trust; provided that in no event shall the Trust created by this Agreement continue beyond the
expiration of 21 years from the death of the last survivor of the descendants living on the date of
this Agreement of Rose Kennedy of the Commonwealth of Massachusetts. Servicer shall promptly
notify Trustee of any prospective termination pursuant to this Section 10.1.

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     (b) Notice of any termination, specifying the Distribution Date upon which the
Holders may surrender the Certificates to Trustee for payment of the final
distribution and cancellation, shall be given promptly by Trustee by letter to
Holders of record and the Rating Agencies mailed not earlier than the 15th day and
not later than the 25th day of the month next preceding the specified Distribution
Date stating the amount of any such final payment and that the
Record Date otherwise applicable to such Distribution Date is not applicable,
payments being made only upon presentation and surrender of the Certificates at the
office of Trustee therein specified. Upon presentation and surrender of the
Certificates, Trustee shall cause to be distributed to Holders amounts
distributable on such Distribution Date pursuant to Section 4.5. Amounts remaining
in the Trust after distribution, or after setting aside all funds required for
distribution, to the Holders shall be distributed to the Transferor.

     (c) In the event that all of the Holders shall not surrender their
Certificates for cancellation within six months after the date specified in the
above-mentioned written notice, Trustee shall give a second written notice to the
remaining Holders to surrender their Certificates for cancellation and receive the
final distribution with respect thereto. Trustee shall after giving such notice to
deliver or cause to be delivered to Servicer the Certificate Register. If within
one year after the second notice all the Certificates shall not have been
surrendered for cancellation, Servicer may take appropriate steps, or may appoint
an agent to take appropriate steps, to contact the remaining Holders concerning
surrender of their Certificates, and the cost thereof shall be paid out of the
funds and other assets that shall remain subject to this Agreement. Any funds
remaining in the Trust after exhaustion of such remedies shall be distributed by
Trustee to the Transferor.

          Section 10.2 Optional Purchase of All Receivables. If the Pool Factor shall be .1000000 or
less as of the last day of any Collection Period, Servicer shall have the option to purchase the
remaining Trust Property on any Distribution Date occurring in a subsequent Collection Period. To
exercise such option, Servicer shall deposit the aggregate Purchase Amount for the remaining
Receivables (other than Defaulted Receivables) into the Collection Account on the Deposit Date
occurring in the month in which such repurchase is to be effected. The payment shall be made in
the manner specified in Section 4.4, and shall be distributed pursuant to Section 4.5. Upon such
payment Servicer shall succeed to and own all interests in and to the Trust Property (subject to
the rights of the Holders to receive a final distribution on the related Distribution Date).

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ARTICLE XI

MISCELLANEOUS PROVISIONS.

          Section 11.1 Amendment. (a) This Agreement may be amended by Seller, Servicer and Trustee,
without the consent of any of the Holders, for the purpose of adding any provisions to or changing
in any manner or eliminating any of the provisions of this Agreement or modifying in any manner the
rights of the Holders; provided that such action shall not, as evidenced by an Opinion of Counsel
to Seller delivered to Trustee, materially and adversely affect the interests of any Holder.

     (b) [This Agreement may be amended by Seller, Servicer and Trustee without the
consent of any of the Holders to add, modify or eliminate such provisions as may be
necessary or advisable in order to enable (i) the transfer to
the Trust of all or any portion of the Receivables to be derecognized under
generally accepted accounting principles (“GAAP”) by Seller to the Trust, (ii) the
Trust to avoid becoming a member of Seller’s consolidated group under GAAP; or
(iii) the Seller, the Transferor or any of their Affiliates to otherwise comply
with or obtain more favorable treatment under any law or regulation or any
accounting rule or principle; it being a condition to any such amendment that each
Rating Agency will have notified the Seller, the Servicer and the Trustee in
writing that the amendment will not result in a reduction or withdrawal of the
rating of any outstanding Certificates with respect to which it is a Rating
Agency.]

     (c) This Agreement may also be amended from time to time by Seller, Servicer
and Trustee, with the consent of the Majority Holders, for the purpose of adding
any provisions to or changing in any manner or eliminating any of the provisions of
this Agreement, or of modifying in any manner the rights of the Holders; provided
that no such amendment shall (i) increase or reduce in any manner the amount of, or
accelerate or delay the timing of, collections of payments on Receivables or
distributions that shall be required to be made on any Certificate without the
consent of all adversely affected Holders, (ii) reduce the percentage of the
aggregate outstanding principal balance of the Certificates, the Holders of which
are required to consent to any such amendment, without the consent of all Holders,
(iii) materially and adversely affect the interests of either the Class A Holders
or the Class B Holders without the consent of the Holders of Class A Certificates
or Class B Certificates, as the case may be, evidencing not less than a majority of
the aggregate outstanding principal balance of the Class A Certificates or the
Class B Certificates, as the case may be, or (iv) cause either Rating Agency to
downgrade or withdraw its rating of the Class A Certificates or the Class B
Certificates without the consent of Holders of Class A Certificates or Class B
Certificates, as the case may be, evidencing more than 66 2/3% of the aggregate
outstanding principal balance of

70

 

the Class A Certificates or the Class B
Certificates, as the case may be. Promptly after the execution of any such
amendment or consent, Trustee shall furnish written notification of the substance
of such amendment or consent to each Holder.

     (d) It shall not be necessary for the consent of Holders pursuant to this
Section 11.1 to approve the particular form of any proposed amendment or consent,
but it shall be sufficient if such consent shall approve the substance thereof.
The manner of obtaining such consents and of evidencing the authorization of the
execution thereof by Holders shall be subject to such reasonable requirements as
Trustee may prescribe.

     (e) Notice of any amendment of this Agreement shall be sent by Servicer to
each Rating Agency, at such address as such Rating Agency may from time to time
specify in writing.

     (f) In connection with any amendment pursuant to this Section 11.1 Trustee
shall be entitled to receive an Opinion of Counsel to the effect that such
amendment is authorized or permitted by the Agreement.

          Section 11.2 Protection of Title to Trust Property. (a) Servicer shall execute and file such
financing statements and cause to be executed and filed such continuation statements, all in such
manner and in such places as may be required by law fully to preserve, maintain and protect the
interest of the Holders and Trustee under this Agreement in the Trust Property and in the proceeds
thereof. Servicer shall deliver (or cause to be delivered) to Trustee file-stamped copies of, or
filing receipts for, any document filed as provided above, as soon as available following such
filing. If Servicer fails to perform its obligations under this subsection, Trustee may (but shall
not be obligated to) do so, at the expense of Servicer.

     (b) Neither Seller nor Servicer shall change its name, identity or corporate
structure in any manner that would, could or might make any financing statement or
continuation statement filed by Servicer in accordance with subsection (a)
misleading within the meaning of the UCC, unless it shall have given Trustee at
least 60 days’ prior written notice thereof and shall have promptly filed
appropriate amendments to all previously filed financing statements or continuation
statements.

     (c) Seller and Servicer shall give Trustee at least 60 days’ prior written
notice of any relocation of its principal executive office if, as a result of such
relocation, the applicable provisions of the UCC would require the filing of any
amendment of any previously filed financing or continuation statement or of any new
financing statement. Seller and Servicer shall at all times maintain each office
from which it shall service Receivables, and its principal executive office, within
the United States of America.

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     (d) Servicer shall maintain accounts and records as to each Receivable
accurately and in sufficient detail to permit (i) the reader thereof to know at any
time the status of such Receivable, including payments and recoveries made and
payments owing (and the nature of each), and (ii) reconciliation between payments
or recoveries on (or with respect to) each Receivable and the amounts from time to
time deposited in the Collection Account in respect of such Receivable.

     (e) Servicer shall maintain its computer systems so that, from and after the
time of sale under this Agreement of the Receivables to Trustee, Servicer’s master
computer records (including archives) that shall refer to a Receivable indicate
clearly that such Receivable is owned by the Trust. Indication of the Trust’s
ownership of a Receivable shall be deleted from or modified on Servicer’s computer
systems when, and only when, the Receivable shall be paid or shall become a
Purchased Receivable.

     (f) If at any time Seller, the Transferor or Servicer shall propose to sell,
grant a security interest in or otherwise transfer any interest in motor vehicle
loans and/or retail installment sales contracts to any prospective purchaser,
lender or other transferee, Seller, Transferor Servicer, as the case may be, shall
give to such prospective purchaser, lender or other transferee computer tapes,
records or printouts (including any restored from archives) that, if they shall
refer in any manner whatsoever to any Receivable, shall indicate clearly that such
Receivable has been sold and is owned by the Trust.

     (g) Upon request, Servicer, at its expense, shall furnish to Trustee, within
thirty days, a list of all Receivables then held as part of the Trust, together
with a reconciliation of such list to each Schedule of Receivables and to each of
Servicer’s Reports furnished pursuant to Section 3.9 indicating removal of
Receivables from the Trust.

     (h) Servicer shall deliver to Trustee upon the Closing Date, and upon the
execution and delivery of each amendment, if any, of this Agreement an Opinion of
Counsel to Servicer either (i) stating that, in the opinion of such counsel, no
filings or other action, other than the filings required in the appropriate filing
offices as described in such opinion, are necessary to perfect and maintain (A) the
security interest of Trustee in the Financed Vehicles, subject to the exceptions
stated therein, and (B) the interest of Trustee in the Receivables and the proceeds
thereof against third parties, subject to the exceptions stated therein, and
reciting the details of such filings or referring to prior Opinions of Counsel in
which such details are given, or (ii) stating that, in the opinion of such counsel,
no such action shall be necessary to perfect or complete the perfected status of
such interest.

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     (i) Servicer shall permit Trustee and its agents, at the expense of Trustee
(except after a Servicer Termination Event, in which case such cost will be at the
expense of Servicer), at any time to inspect, audit and make copies of and
abstracts from Servicer’s records regarding any Receivables then or previously
included in the Trust.

          Section 11.3 Limitation on Rights of Holders. (a) The death or incapacity of any Holder shall
not operate to terminate this Agreement or the Trust, or entitle the Holder’s legal representatives
or heirs to claim an accounting or to take any action or commence any proceeding in any court for a
partition or winding up of the Trust, or otherwise affect the rights, obligations and liabilities
of the parties to this Agreement or any of them.

     (b) No Holder shall have any right to vote (except as expressly provided
herein) or in any manner otherwise control the operation and management of the
Trust or the obligations of the parties to this Agreement, nor shall anything set
forth in this Agreement, or contained in the terms of the Certificates, be
construed so as to constitute the Holders as partners or members of an association;
nor shall any Holder be under any liability to any third party by reason of any
action taken pursuant to any provision of this Agreement.

     (c) No Holder shall have any right by virtue or by availing itself of any
provisions of this Agreement to institute any suit, action or proceeding in equity
or at law upon or under or with respect to this Agreement, unless such Holder
previously shall have given to Trustee a written notice of default and of the
continuance thereof, as hereinbefore provided, and unless, with respect to the
Class A Certificates, Class A Holders evidencing not less than a majority of the
aggregate outstanding principal balance of the Class A Certificates or, with
respect to the Class B Certificates, Class B Holders evidencing not less than a
majority of the aggregate outstanding principal balance of the Class B
Certificates, shall have made written request upon Trustee to institute such
action, suit or proceeding in its own name as Trustee under the Agreement and shall
have offered to Trustee such reasonable indemnity as it may require against the
costs, expenses and liabilities to be incurred therein or thereby, and Trustee, for
___ days after its receipt of such notice, request and offer of indemnity
satisfactory to it, shall have neglected or refused to institute any such action,
suit or proceeding; no one or more Holders of Certificates shall have any right in
any manner whatever by virtue or by availing itself or themselves of any provisions
of this Agreement to affect, disturb or prejudice the rights of the Holders of any
other of the Certificates, or to obtain or seek to obtain priority over or
preference to any other such Holder or to enforce any right under this Agreement,
except in the manner provided in this Agreement and for the equal, ratable and
common benefit of all Class A Holders or Class B Holders, as the case may be. For
the protection and enforcement of the provisions of this Section 11.3, each Holder

73

 

and Trustee shall be entitled to such relief as can be given either at law or in
equity.

          Section 11.4 Governing Law. THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF
THE STATE OF NEW YORK, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS;
EXCEPT THAT THE GRANT OF A SECURITY INTEREST IN THE RESERVE ACCOUNT PROPERTY AND THE PERFECTION,
EFFECT OF PERFECTION, AND PRIORITY OF SUCH SECURITY INTEREST SHALL BE GOVERNED BY THE LAWS OF THE
STATE OF                     .

          Section 11.5 Notices. All demands, notices, and communications under this Agreement shall be
in writing, personally delivered, or sent by telecopier, overnight mail or mailed by certified
mail, return receipt requested, and shall be deemed to have been duly given upon receipt (a) in the
case of Seller to                     , Attention:                     ; (b) in the case of Servicer, to
                    , Attention:                     ; (c) in the case of Trustee, at the Corporate Trust
Office, facsimile number:                     ; (d) [in the case of Moody’s, at the following address:
Moody’s Investors Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New York
10007, facsimile number: (212) 553-3850]; (e) in the case of [Standard & Poor’s, at the following
address: Standard & Poor’s Ratings Services, a division of The McGraw-Hill Companies, Inc., 25
Broadway, 20th Floor, New York, New York 10004, Attention: Asset Backed Surveillance Department,
facsimile number: (212) 208-0030]; and (f) in the case of Fitch, to                     . Any notice
required or permitted to be mailed to a
Holder shall be given by first class mail, postage prepaid, at the address of record of such
Holder. Any notice so mailed within the time prescribed in this Agreement shall be conclusively
presumed to have been duly given, whether or not the Holder shall receive such notice.

          Section 11.6 Severability of Provisions. If any one or more of the covenants, provisions or
terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants,
provisions or terms shall be deemed severable from the remaining covenants, provisions or terms of
this Agreement, and shall in no way affect the validity or enforceability of the other provisions
of this Agreement or of the Certificates or the rights of the Holders thereof.

          Section 11.7 Assignment. Notwithstanding anything to the contrary contained herein, except as
provided in Section 2.5, 3.1, 6.3 and 7.3, this Agreement may not be assigned by Seller or
Servicer. This Agreement may not be assigned by Trustee except as provided by Sections 9.10
through 9.13.

          Section 11.8 Certificates Nonassessable and Fully Paid. The interests represented by the
Certificates shall be nonassessable for any losses or expenses of the Trust or for any reason
whatsoever, and, upon authentication thereof by Trustee pursuant to Section 5.1, each Certificate
shall be deemed fully paid.

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          Section 11.9 Intention of Parties. (a) The execution and delivery of this Agreement shall
constitute an acknowledgment by Seller and Trustee, on behalf of the Holders, that it is intended
that the assignment and transfer herein contemplated constitute a sale and assignment outright, and
not for security, of the Receivables and the other Trust Property, conveying good title thereto
free and clear of any liens, from Seller to the Trust, and that the Receivables and the other Trust
Property shall not be a part of Seller’s estate in the event of the insolvency, receivership,
conservatorship or the occurrence of another similar event, of, or with respect to, Seller. In the
event that such conveyance is determined to be made as security for a loan made by the Trust or the
Holders to the Seller, the parties intend that Seller shall have granted to Trustee a security
interest in all of Seller’s right, title and interest in and to the Trust Property conveyed to the
Trust pursuant to Section 2.1, and that this Agreement shall constitute a security agreement under
applicable law.

     (b) The execution and delivery of this Agreement shall constitute an
acknowledgment by Seller and Trustee on behalf of the Holders that they intend that
the Trust be classified (for Federal tax purposes) as a grantor trust under Subpart
E, Part I of Subchapter J of the Internal Revenue Code of which the Holders are
owners, rather than as an association taxable as a corporation. The powers granted
and obligations undertaken in this Agreement shall be construed so as to further
such intent.

          Section 11.10 Counterparts. For the purpose of facilitating the execution of this Agreement
and for other purposes, this Agreement may be executed simultaneously in any number of
counterparts, each of which counterparts shall be deemed to be an original, and all of which
counterparts shall constitute but one and the same instrument.

          Section 11.11 Further Assurances. Seller and Servicer agree to do and perform, from time to
time, any and all acts and to execute any and all further instruments required or reasonably
requested by Trustee more fully to effect the purposes of this Agreement, including without
limitation, the execution of any financing statements or continuation statements relating to the
Receivables for filing under the provisions of the UCC of any applicable jurisdiction.

          Section 11.12 No Waiver; Cumulative Remedies. No failure to exercise and no delay in
exercising, on the part of the Trustee or the Holders, any right, remedy, power or privilege
hereunder, shall operate as a waiver thereof; nor shall any single or partial exercise of any
right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the
exercise of any other right, remedy, power or privilege. The rights, remedies, powers and
privileges therein provided are cumulative and not exhaustive of any rights, remedies, powers and
privileges provided by law.

          Section 11.13 Regulation AB. The Servicer shall cooperate fully with the Seller and the Trust
to deliver to the Seller and the Trust (including any of its assignees or designees) any and all
statements, reports, certifications, records and any other information necessary in the good faith
determination of the Seller or the Issuer to permit the Seller to comply with the

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provisions of
Regulation AB, together with such disclosures relating to the Servicer and the Receivables, or the
servicing of the Receivables, reasonably believed by the Seller to be necessary in order to effect
such compliance.

          Section 11.14 Information to Be Provided by the Trustee. (a) For so long as the Trust is
required to report under the Exchange Act, the Trustee shall (i) on or before the fifth Business
Day of each month, provide to the Seller, in writing, such information regarding the Trustee as is
requested by the Seller (if any) for the purpose of compliance with Item 1117 of Regulation AB;
provided, however, that the Trustee shall not be required to provide such information in the event
that there has been no change to the information previously provided by the Trustee to Seller, and
(ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the
Trustee of any changes to such information, provide to the Seller, in writing, such updated
information.

     (b) As soon as available but no later than March 15 of each calendar year for
so long as the Trust is required to report under the Exchange Act, commencing in [
], the Trustee shall:

(i) deliver to the Seller a report regarding the Trustee’s assessment of
compliance with the Servicing Criteria during the immediately preceding
calendar year, as required under paragraph (b) of Rule 13a-18, Rule 15d-18
of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
signed by an authorized officer of the Trustee, and shall address each of
the Servicing Criteria specified in Exhibit D or such criteria as
mutually agreed upon by the Seller and the Trustee;

(ii) deliver to the Seller a report of a registered public accounting firm
that attests to, and reports on, the assessment of compliance made by the
Indenture Trustee and delivered pursuant to the preceding paragraph.
Such attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of
Regulation S-X under the Securities Act and the Exchange Act; and

(iii) deliver to the Seller and any other Person that will be responsible
for signing the certification (a “Sarbanes Certification”) required by Rules
13a-14(d) and 15d-14(d) under the Exchange Act (pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002) on behalf of the Issuer or the Seller
substantially in the form attached hereto as Exhibit E or such form
as mutually agreed upon by the Seller and the Trustee.

     THE TRUSTEE ACKNOWLEDGES THAT THE PARTIES IDENTIFIED IN CLAUSE (III) ABOVE MAY
RELY ON THE CERTIFICATION PROVIDED BY THE TRUSTEE PURSUANT TO SUCH CLAUSE IN SIGNING
A SARBANES CERTIFICATION AND FILING SUCH WITH THE COMMISSION.

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

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN FUNDING, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	VW CREDIT, INC., Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	                                                                               ___, Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

77

 

	 	 	 	 	 

SCHEDULE A

LOCATION OF RECEIVABLE FILES

 

S-1

 

FORM OF CLASS A CERTIFICATE

EXHIBIT A

 

                    % ASSET BACKED CERTIFICATE, CLASS A

     Evidencing a fractional undivided interest in the Trust, as defined below, the property of which
includes a pool of fixed rate simple interest retail motor vehicle loans and/or retail installment
sales contracts (the “Receivables”) secured by the new and used automobiles and light duty trucks
financed thereby (the “Financed Vehicles”) and sold to the Trust by VOLKSWAGEN AUTO LEASE/LOAN
UNDERWRITTEN FUNDING, LLC.

THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE TRUST AND DOES NOT REPRESENT AN
INTEREST IN OR OBLIGATION OF                             . THIS CERTIFICATE AND THE RECEIVABLES
ARE NOT DEPOSITS AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR
ANY OTHER GOVERNMENTAL AGENCY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

	 	 	 
	NUMBER

	CUSIP 	 

Original Certificate Amount

Exhibit A
to the Pooling and Servicing Agreement

A-1

 

     THIS CERTIFIES THAT                      is the registered owner of a                      dollars,
nonassessable, fully paid, fractional undivided interest in Volkswagen Auto Loan Enhanced Trust
200_-_ (the “Trust”) formed pursuant to a Pooling and Servicing Agreement dated as of                     ,
200__ (the “Agreement”) among Volkswagen Auto Lease/Loan Underwritten Funding, LLC, a Delaware
limited liability company (the “Seller”), VW Credit, Inc. (the “Servicer”) and                     , a
                    , as trustee (the “Trustee”).

     To the extent not otherwise defined herein, the capitalized terms used herein have the
meanings assigned to them in the Agreement. This Certificate is one of the duly authorized
Certificates designated as “___% Asset Backed Certificates, Class A” (herein called the “Class A
Certificates”). Also issued under the Agreement are Certificates designated as “___% Asset
Backed Certificates, Class B” (the “Class B Certificates”). The Class A Certificates and the Class
B Certificates are hereinafter collectively called the “Certificates.” This Certificate is issued
under and is subject to the terms, provisions, and conditions of the Agreement, to which the Holder
of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.
The Trust Property includes (as more fully described in the Agreement) a pool of Receivables,
certain monies received under the Receivables after                      ___, 200_ (the “Cutoff Date”),
security interests in the Financed Vehicles, and proceeds of the foregoing.

     Subject to the terms and conditions of the Agreement (including the availability of funds for
distributions) and until the obligations created by the Agreement shall have terminated in
accordance therewith, there will be distributed, but only from funds on deposit in the Class A
Distribution Account, on the __th day of each month or, if such __th day is not a Business Day, the
next succeeding Business Day (each such date, a “Distribution Date”), commencing                      ___,
200_, to the Person in whose name this Certificate is registered at the close of business on the
last day of the preceding Collection Period (the “Record Date”), such Holder’s fractional undivided
interest in the amounts to be distributed to Class A Holders pursuant to the Agreement on such
Distribution Date.

     Distributions on this Certificate will be made by Trustee by check mailed to the Holder of
record at its address as it appears in the Certificate Register without the presentation or
surrender of this Certificate or the making of any notation hereon, except that with respect to a
Certificate registered in the name of a Clearing Agency or its nominee, distributions will be made
by wire transfer of immediately available funds. Except as otherwise provided in the Agreement and
notwithstanding the above, the final distribution on this Certificate will be made after due notice
by Trustee of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency maintained for that purpose by Trustee.

     This Certificate does not purport to summarize the Agreement and reference is hereby made to
the Agreement for information with respect to the rights, benefits, obligations and duties
evidenced thereby.

A-2

 

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

          Each Holder, by its acceptance of a Certificate or a beneficial interest in a Certificate,
acknowledges and agrees that they intend that the Trust be classified (for Federal tax purposes) as
a grantor trust under Subpart E, Part I of Subchapter J of the Internal Revenue Code of which the
Holders are owners, rather than as an association taxable as a corporation.

          IN WITNESS WHEREOF, Trustee, on behalf of the Trust, and not in its individual capacity, has
caused this Certificate to be duly executed.

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LOAN ENHANCED TRUST 200_-_

 	 
	 	By:  	
 
, ____ as Trustee 
 	 
	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 	

DATED:

[SEAL]

ATTEST:

Authorized Officer 
 	 
	 

Trustee’s Certificate of Authentication:

          This is one of the Class A Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	 	 
	 	
  ___, 
     as Trustee
 	 
	 	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

1

A-3

 

FORM OF CLASS B CERTIFICATE

EXHIBIT B

 

                    % ASSET BACKED CERTIFICATE, CLASS B

Evidencing a fractional undivided interest in the Trust, as defined below, the property of which
includes a pool of fixed rate simple interest retail motor vehicle loans and/or retail installment
sales contracts (the “Receivables”) secured by the new and used automobiles and light duty trucks
financed thereby (the “Financed Vehicles”) and sold to the Trust by Volkswagen Auto Lease/Loan
Underwritten Funding, LLC.

THIS CERTIFICATE REPRESENTS A FRACTIONAL UNDIVIDED INTEREST IN THE TRUST AND DOES NOT REPRESENT AN
INTEREST IN OR OBLIGATION OF               
                    THIS CERTIFICATE AND THE RECEIVABLES ARE NOT
DEPOSITS AND ARE NOT INSURED OR GUARANTEED BY THE FEDERAL DEPOSIT INSURANCE CORPORATION OR ANY
OTHER GOVERNMENTAL AGENCY.

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST
COMPANY, A NEW YORK CORPORATION (“DTC”), TO THE ISSUER OR ITS AGENT FOR REGISTRATION OF TRANSFER,
EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH
OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY PAYMENT IS MADE TO CEDE
& CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY
TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL
INASMUCH AS THE REGISTERED OWNER HEREOF, CEDE & CO., HAS AN INTEREST HEREIN.

	 	 	 
	NUMBER
	 	CUSIP                     

Original Certificate Amount

Exhibit B
to the Pooling and Servicing Agreement

B-1

 

          THIS CERTIFIES THAT                    is the registered owner of a                      dollars,
nonassessable, fully paid, fractional undivided interest in the Volkswagen Auto Loan Enhanced Trust
200_-___ (the “Trust”) formed pursuant to a Pooling and Servicing Agreement dated as of _________ ___,
200_ (the “Agreement”) among Volkswagen Auto Lease/Loan Underwritten Funding, LLC, a Delaware
limited liability company (the “Seller”), VW Credit, Inc. (the “Servicer”) and                     , a
                    , as trustee (the “Trustee”).

          To the extent not otherwise defined herein, the capitalized terms used herein have the
meanings assigned to them in the Agreement. This Certificate is one of the duly authorized
Certificates designated as “___% Asset Backed Certificates, Class B” (herein called the “Class B
Certificates”). Also issued under the Agreement are Certificates designated as “___% Asset
Backed Certificates, Class A” (the “Class A Certificates”). The Class A Certificates and the Class
B Certificates are hereinafter collectively called the “Certificates.” This Certificate is issued
under and is subject to the terms, provisions, and conditions of the Agreement, to which the Holder
of this Certificate by virtue of the acceptance hereof assents and by which such Holder is bound.
The Trust Property includes (as more fully described in the Agreement) a pool of Receivables,
certain monies received under the Receivables after _____, __200_ (the “Cutoff Date”), security
interests in the Financed Vehicles, and proceeds of the foregoing. The rights of the Holder of the
Class B Certificates are subordinated to the rights of the Holders of the Class A Certificates to
the extent set forth in the Agreement.

          Subject to the terms and conditions of the Agreement (including the availability of funds for
distributions and the subordination of the Class B Certificates) and until the obligations created
by the Agreement shall have terminated in accordance therewith, there will be distributed, but only
from funds on deposit in the Class B Distribution Account, on the _th day of each month or, if such
___th day is not a Business Day, the next succeeding Business Day (each such date, a “Distribution
Date”), commencing _____ __, 200_, to the Person in whose name this Certificate is registered at
the close of business on the last day of the preceding Collection Period (the “Record Date”), such
Holder’s fractional undivided interest in the amounts to be distributed to Class B Holders pursuant
to the Agreement on such Distribution Date.

          Distributions on this Certificate will be made by Trustee by check mailed to the Holder of
record at its address as it appears in the Certificate Register without the presentation or
surrender of this Certificate or the making of any notation hereon, except that with respect to a
Certificate registered in the name of a Clearing Agency or its nominee, distributions will be made
by wire transfer of immediately available funds. Except as otherwise provided in the Agreement and
notwithstanding the above, the final distribution on this Certificate will be made after due notice
by Trustee of the pendency of such distribution and only upon presentation and surrender of this
Certificate at the office or agency maintained for that purpose by Trustee.

          This Certificate does not purport to summarize the Agreement and reference is hereby made to
the Agreement for information with respect to the rights, benefits, obligations and duties
evidenced thereby.

B-2

 

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

          Each Holder, by its acceptance of a Certificate or a beneficial interest in a Certificate,
acknowledges and agrees that they intend that the Trust be classified (for Federal tax purposes) as
a grantor trust under Subpart E, Part I of Subchapter J of the Internal Revenue Code of which the
Holders are owners, rather than as an association taxable as a corporation.

          IN WITNESS WHEREOF, Trustee, on behalf of the Trust, and not in its individual capacity, has
caused this Certificate to be duly executed.

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LOAN ENHANCED TRUST 200_-_

 	 
	 	By:  	__________________________
____, as Trustee
 	 
	 	 	 
	 	By:  	
 	 
	 	 	Authorized officer 	 
	 	 	 	 
	 	

DATED:

[SEAL]

ATTEST:

Authorized Officer 
 	 
	 

Trustee’s Certificate of Authentication:

          This is one of the Class B Certificates referred to in the within-mentioned Agreement.

	 	 	 	 	 
	 	
          , as Trustee

 	 
	 	By:  	 	 
	 	 	Authorized Officer 	 
	 	 	 	 
	 

B-3

 

EXHIBIT C

Form of Servicer’s Report

Exhibit C
to the Pooling and Servicing Agreement

C-1

 

EXHIBIT D

SERVICING CRITERIA TO BE ADDRESSED IN

TRUSTEE’S ASSESSMENT OF COMPLIANCE

     The assessment of compliance to be delivered by the Trustee shall address, at a minimum, the
criteria identified as below as “Applicable Servicing Criteria”:

[To be inserted]

Exhibit D
to the Pooling and Servicing Agreement

D-1

 

EXHIBIT E

FORM OF TRUSTEE’S ANNUAL CERTIFICATION

Re:    VOLKSWAGEN AUTO LOAN ENHANCED TRUST [  ]-[  ]

          [ ], not in its individual capacity but solely as indenture trustee (the “Trustee”),
certifies to Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the “Seller”), and its officers,
with the knowledge and intent that they will rely upon this certification, that:

          (1) It has reviewed the report on assessment of the Trustee’s compliance provided in
accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of 1934, as
amended (the “Exchange Act”) and Item 1122 of Regulation AB (the “Servicing Assessment”),
and the registered public accounting firm’s attestation report provided in accordance with
Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the
“Attestation Report”) that were delivered by the Trustee to the Seller pursuant to the
Pooling and Servicing Agreement (the “Agreement”), dated as of [ ], by and between VW
Credit, Inc., the Seller, the Trustee and Volkswagen Auto Loan Enhanced Trust [ ]-[ ]
(collectively, the “Trustee Information”);

          (2) To the best of its knowledge, the Trustee Information, taken as a whole, does not
contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in the light of the circumstances under which such statements
were made, not misleading with respect to the period of time covered by the Indenture
Trustee Information;

          (3) To the best of its knowledge, all of the Trustee Information required to be
provided by the Trustee under the Agreement has been provided to the Seller; and

          (4) To the best of its knowledge, except as disclosed in the Servicing Assessment or
the Attestation Report, the Trustee has fulfilled its obligations under the Agreement.

     [   ], not in its individual capacity but solely as
Trustee

     Date:                     

Exhibit E to the Pooling and Servicing Agreement

E-1EX-10.1

Exhibit 10.1

 

 

SALE AND SERVICING AGREEMENT

by and among

VOLKSWAGEN AUTO LOAN ENHANCED TRUST 20[   ]-[   ],

as Issuer

VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN FUNDING, LLC,

as Seller

VW CREDIT, INC.,

as Servicer

and

[  ]

as Indenture Trustee

Dated as of [  ]

 

 

20[  ]-[  ] Sale & Servicing Agreement

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 
	ARTICLE I            DEFINITIONS AND USAGE	 	 	1	 
	SECTION 1.1

	 	Definitions
	 	 	1	 
	SECTION 1.2

	 	Other Interpretive Provisions
	 	 	1	 
	 
	ARTICLE II           CONVEYANCE OF TRANSFERRED ASSETS	 	 	2	 
	SECTION 2.1

	 	Conveyance of Transferred Assets
	 	 	2	 
	SECTION 2.2

	 	Representations and Warranties of the Seller as to each Receivable	 	 	2	 
	SECTION 2.3

	 	Repurchase Upon Breach
	 	 	2	 
	SECTION 2.4

	 	Custody of Receivable Files
	 	 	3	 
	 
	ARTICLE III           ADMINISTRATION AND SERVICING OF RECEIVABLES AND TRUST PROPERTY	 	 	5	 
	SECTION 3.1

	 	Duties of Servicer
	 	 	5	 
	SECTION 3.2

	 	Collection of Receivable Payments
	 	 	6	 
	SECTION 3.3

	 	Realization Upon Receivables
	 	 	7	 
	SECTION 3.4

	 	Maintenance of Security Interests in Financed Vehicles
	 	 	7	 
	SECTION 3.5

	 	Covenants of Servicer
	 	 	8	 
	SECTION 3.6

	 	Purchase of Receivables Upon Breach
	 	 	8	 
	SECTION 3.7

	 	Servicing Fee
	 	 	8	 
	SECTION 3.8

	 	Servicer’s Certificate
	 	 	8	 
	SECTION 3.9

	 	Annual Officer’s Certificate; Notice of Servicer Replacement Event

	 	 	9	 
	
SECTION 3.10

	 	
Annual Registered Public Accounting Firm Attestation
	 	 	9	 
	SECTION 3.11

	 	Servicer Expenses
	 	 	9	 
	SECTION 3.12

	 	1934 Act Filings
	 	 	9	 
	 
	ARTICLE IV           DISTRIBUTIONS; ACCOUNTS; STATEMENTS TO THE CERTIFICATEHOLDER AND THE NOTEHOLDERS	9	 
	SECTION 4.1

	 	Establishment of Accounts
	 	 	10	 
	SECTION 4.2

	 	Remittances
	 	 	12	 
	SECTION 4.3

	 	Additional Deposits and Payments; Servicer Advances
	 	 	12	 
	SECTION 4.4

	 	Distributions
	 	 	13	 
	SECTION 4.5

	 	Net Deposits
	 	 	14	 
	SECTION 4.6

	 	Statements to Certificateholder and Noteholders
	 	 	14	 

-i-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	SECTION 4.7

	 	No Duty to Confirm
	 	 	15	 
	 
	ARTICLE V           THE SELLER	 	 	16	 
	SECTION 5.1

	 	Representations and Warranties of Seller
	 	 	16	 
	SECTION 5.2

	 	Liability of Seller; Indemnities
	 	 	17	 
	SECTION 5.3

	 	Merger or Consolidation of, or Assumption of the Obligations of, Seller
	 	 	18	 
	SECTION 5.4

	 	Limitation on Liability of Seller and Others
	 	 	18	 
	SECTION 5.5

	 	Seller May Own Notes
	 	 	18	 
	SECTION 5.6

	 	Sarbanes-Oxley Act Requirements
	 	 	19	 
	SECTION 5.7

	 	Compliance with Organizational Documents
	 	 	19	 
	SECTION 5.8

	 	Perfection Representations, Warranties and Covenants
	 	 	19	 
	 
	ARTICLE VI           THE SERVICER	 	 	19	 
	SECTION 6.1

	 	Representations of Servicer
	 	 	19	 
	SECTION 6.2

	 	Indemnities of Servicer
	 	 	20	 
	SECTION 6.3

	 	Merger or Consolidation of, or Assumption of the
Obligations of, Servicer
	 	 	21	 
	SECTION 6.4

	 	Limitation on Liability of Servicer and Others
	 	 	22	 
	SECTION 6.5

	 	Delegation of Duties
	 	 	22	 
	SECTION 6.6

	 	VCI Not to Resign as Servicer
	 	 	23	 
	SECTION 6.7

	 	Servicer May Own Notes
	 	 	23	 
	 
	ARTICLE VII           REPLACEMENT OF SERVICER	 	 	23	 
	SECTION 7.1

	 	Replacement of Servicer
	 	 	23	 
	SECTION 7.2

	 	Notification to Noteholders
	 	 	24	 
	 
	ARTICLE VIII           OPTIONAL PURCHASE	 	 	25	 
	SECTION 8.1

	 	Optional Purchase of Trust Estate
	 	 	25	 
	 
	ARTICLE IX           MISCELLANEOUS PROVISIONS	 	 	25	 
	SECTION 9.1

	 	Amendment
	 	 	25	 
	SECTION 9.2

	 	Protection of Title
	 	 	26	 
	SECTION 9.3

	 	Other Liens or Interests
	 	 	28	 
	SECTION 9.4

	 	Transfers Intended as Sale; Security Interest
	 	 	28	 
	SECTION 9.5

	 	Notices, Etc
	 	 	29	 

-ii-

 

TABLE OF CONTENTS
(continued)

	 	 	 	 	 	 	 
	SECTION 9.6

	 	Choice of Law
	 	 	29	 
	SECTION 9.7

	 	Headings
	 	 	29	 
	SECTION 9.8

	 	Counterparts
	 	 	29	 
	SECTION 9.9

	 	Waivers
	 	 	29	 
	SECTION 9.10

	 	Entire Agreement
	 	 	30	 
	SECTION 9.11

	 	Severability of Provisions
	 	 	30	 
	SECTION 9.12

	 	Binding Effect
	 	 	30	 
	SECTION 9.13

	 	Acknowledgment and Agreement
	 	 	30	 
	SECTION 9.14

	 	No Waiver; Cumulative Remedies
	 	 	30	 
	SECTION 9.15

	 	Nonpetition Covenant
	 	 	30	 
	SECTION 9.16

	 	Submission to Jurisdiction; Waiver of Jury Trial
	 	 	31	 
	SECTION 9.17

	 	Limitation of Liability
	 	 	31	 
	SECTION 9.18

	 	Third-Party Beneficiaries
	 	 	32	 
	SECTION 9.19

	 	Information Requests
	 	 	32	 
	SECTION 9.20

	 	Regulation AB
	 	 	32	 
	SECTION 9.21

	 	Information to Be Provided by the Indenture Trustee
	 	 	32	 
	SECTION 9.22

	 	Form 8-K Filings
	 	 	33	 
	SECTION 9.23

	 	Indemnification
	 	 	33	 

	 	 	 
	Appendix A

	 	Definitions
	 
	 	 
	Schedule I

	 	Representations and Warranties With Respect to the Receivables
	Schedule II

	 	Notice Addressees
	 
	 	 
	Exhibit A

	 	Form of Assignment pursuant to Sale and Servicing Agreement
	Exhibit B

	 	Perfection Representations, Warranties and Covenants
	Exhibit C

	 	Servicing Criteria to be Addressed in Indenture Trustee’s Assessment
of Compliance
	Exhibit D

	 	Form of Indenture Trustee’s Annual Certification

-iii-

 

     SALE AND SERVICING AGREEMENT, dated as of [  ] (together with all exhibits, schedules and
appendices hereto and as from time to time amended, supplemented or otherwise modified and in
effect, this “Agreement”), by and among VOLKSWAGEN AUTO LOAN ENHANCED TRUST 20[  ]-[  ]
(the “Issuer”), a Delaware statutory trust, VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN
FUNDING, LLC, a Delaware limited liability company, as seller (the “Seller”), VW CREDIT,
INC., a Delaware corporation (“VCI”), as servicer (in such capacity, the
“Servicer”), and [  ], a [national banking association], as indenture trustee (the
“Indenture Trustee”).

     WHEREAS, the Issuer desires to purchase from the Seller a portfolio of motor vehicle
receivables, including retail motor vehicle installment sales contracts and/or installment loans
that are secured by new and used automobiles and light-duty trucks;

     WHEREAS, the Seller is willing to sell such portfolio of motor vehicle receivables and related
property to the Issuer; and

     WHEREAS, VCI is willing to service such motor vehicle receivables and related property on
behalf of the Issuer;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained,
and other good and valuable consideration, the receipt and sufficiency of which is hereby
acknowledged, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE I

DEFINITIONS AND USAGE

     SECTION 1.1 Definitions. Except as otherwise specified herein or as the context may
otherwise require, capitalized terms used but not otherwise defined herein are defined in
Appendix A hereto, which also contains rules as to usage that are applicable herein.

     SECTION 1.2 Other Interpretive Provisions. For purposes of this Agreement, unless the
context otherwise requires: (a) accounting terms not otherwise defined in this Agreement, and
accounting terms partly defined in this Agreement to the extent not defined, shall have the
respective meanings given to them under GAAP; (b) terms defined in Article 9 of the UCC as in
effect in the relevant jurisdiction and not otherwise defined in this Agreement are used as defined
in that Article; (c) the words “hereof,” “herein” and “hereunder” and words of similar import refer
to this Agreement as a whole and not to any particular provision of this Agreement; (d) references
to any Article, Section, Schedule, Appendix or Exhibit are references to Articles, Sections,
Schedules, Appendices and Exhibits in or to this Agreement and references to any paragraph,
subsection, clause or other subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (e) the term “including”
means “including without limitation”; (f) except as otherwise expressly provided herein, references
to any law or regulation refer to that law or regulation as amended from time to time and include
any successor law or regulation; and (g) references to any Person include that Person’s successors
and assigns.

 

 

ARTICLE II

CONVEYANCE OF TRANSFERRED ASSETS

     SECTION 2.1 Conveyance of Transferred Assets. In consideration of the Issuer’s sale
and delivery to, or upon the order of, the Seller of all of the Notes and the Certificate on the
Closing Date, the Seller does hereby irrevocably sell, transfer, assign and otherwise convey to the
Issuer without recourse (subject to the obligations herein) all right, title and interest of the
Seller, whether now owned or hereafter acquired, in and to the Transferred Assets, described in an
Assignment substantially in the form of Exhibit A delivered on the Closing Date. The sale,
transfer, assignment and conveyance made hereunder will not constitute and is not intended to
result in an assumption by the Issuer of any obligation of the Seller or the applicable Originator
to the Obligors, the Dealers or any other Person in connection with the Receivables or the other
assets and properties conveyed hereunder or any agreement, document or instrument related thereto.

     SECTION 2.2 Representations and Warranties of the Seller as to each Receivable. The
Seller hereby makes the representations and warranties set forth on Schedule I as to the
Receivables sold, transferred, assigned, and otherwise conveyed to the Issuer under this Agreement
on which such representations and warranties the Issuer relies in acquiring the Receivables. The
representations and warranties as to each Receivable shall survive the Grant of the Receivables by
the Issuer to the Indenture Trustee pursuant to the Indenture. Notwithstanding any statement to
the contrary contained herein or in any other Transaction Document, the Seller shall not be
required to notify any insurer with respect to any Insurance Policy obtained by an Obligor or to
notify any Dealer about any aspect of the transaction contemplated by the Transaction Documents.

     SECTION 2.3 Repurchase Upon Breach. Upon discovery by any party hereto of a breach of
any of the representations and warranties set forth in Section 2.2 at the time such
representations and warranties were made which materially and adversely affects the interests of
the Issuer or the Noteholders, the party discovering such breach shall give prompt written notice
thereof to the other parties hereto; provided that delivery of the Servicer’s Certificate shall be
deemed to constitute prompt notice by the Servicer and the Issuer of such breach; provided,
further, that the failure to give such notice shall not affect any obligation of the Seller
hereunder. If the Seller does not correct or cure such breach prior to the end of the Collection
Period which includes the 60th day (or, if the Seller elects, an earlier date) after the date that
the Seller became aware or was notified of such breach, then the Seller shall purchase any
Receivable materially and adversely affected by such breach from the Issuer on the Payment Date
following the end of such Collection Period (or, if the Seller elects, an earlier date). Any such
breach or failure will not be deemed to have a material and adverse effect if such breach or
failure does not affect the ability of the Issuer to receive and retain timely payment in full on
such Receivable. Any such purchase by the Seller shall be at a price equal to the Repurchase
Price. In consideration for such repurchase, the Seller shall make (or shall cause to be made) a
payment to the Issuer equal to the Repurchase Price by depositing such amount into the Collection
Account prior to 11:00 a.m., New York City time on such Payment Date, or earlier date, if elected
by the Seller. Upon
payment of such Repurchase Price by the Seller, the Issuer and the Indenture Trustee shall
release and shall execute and deliver such instruments of release, transfer or assignment, in each

2

 

case without recourse or representation, as shall be reasonably requested of it to vest in the
Seller or its designee any Receivable repurchased pursuant hereto. It is understood and agreed
that the right to cause the Seller to purchase (or to enforce the obligations of VCI under the
Purchase Agreement to purchase) any Receivable as described above shall constitute the sole remedy
respecting such breach available to the Issuer and the Indenture Trustee. Neither the Owner
Trustee nor the Indenture Trustee will have any duty to conduct an affirmative investigation as to
the occurrence of any condition requiring the repurchase of any Receivable pursuant to this
Section 2.3.

     SECTION 2.4 Custody of Receivable Files.

     (a) Custody. To assure uniform quality in servicing the Receivables and to reduce
administrative costs, the Issuer and the Indenture Trustee, upon the execution and delivery of this
Agreement, hereby revocably appoint the Servicer, and the Servicer hereby accepts such appointment,
to act as the agent of the Issuer and the Indenture Trustee as custodian of the following documents
or instruments, which are hereby or will hereby be constructively delivered to the Indenture
Trustee (or its agent or designee), as pledgee of the Issuer pursuant to the Indenture with respect
to each Receivable (but only to the extent applicable to such Receivable and only to the extent
held in tangible paper form) (the “Receivable Files”):

	 	(i)	 	the fully executed original of the retail motor vehicle
installment sales contract or promissory note and security agreement related to
such Receivable, including any written amendments or extensions thereto;
	 
	 	(ii)	 	the original credit application or a photocopy thereof to the
extent held in paper form;
	 
	 	(iii)	 	the original Certificate of Title or, if not yet received,
evidence that an application therefore has been submitted with the appropriate
authority, a guaranty of title from a Dealer or such other document (electronic
or otherwise, as used in the applicable jurisdiction) that the Servicer keeps
on file, in accordance with its Customary Servicing Practices, evidencing the
security interest of the applicable Originator in the Financed Vehicle;
provided, however, that in lieu of being held in the Receivable File, the
Certificate of Title may be held by a third party service provider engaged by
the Servicer to obtain or hold Certificates of Title; and
	 
	 	(iv)	 	any and all other documents that the Servicer or the Seller
keeps on file, in accordance with its Customary Servicing Practices, relating
to a Receivable, an Obligor or a Financed Vehicle.

The foregoing appointment of the Servicer is deemed to be made with due care.

     (b) Safekeeping. The Servicer, in its capacity as custodian, shall hold the
Receivable Files for the benefit of the Issuer and the Indenture Trustee. In performing its duties
as custodian, the Servicer shall act in accordance with its Customary Servicing Practices. The
Servicer will promptly report to the Issuer and the Indenture Trustee any failure on its part to
hold a material portion of the Receivable Files and maintain its accounts, records, and computer

3

 

systems as herein provided and promptly take appropriate action to remedy any such failure. The
Servicer may, in accordance with its Customary Servicing Practices: (i) maintain all or a portion
of the Receivable Files in electronic form and (ii) maintain custody of all or any portion of the
Receivable Files with one or more of its agents or designees.

     (c) Maintenance of and Access to Records. The Servicer will maintain each Receivable
File in the United States (it being understood that the Receivable Files, or any part thereof, may
be maintained at the offices of any Person to whom the Servicer has delegated responsibilities in
accordance with Section 6.5). The Servicer will make available to the Issuer and the
Indenture Trustee or their duly authorized representatives, attorneys or auditors a list of
locations of the Receivable Files upon request. The Servicer will provide access to the Receivable
Files, and the related accounts records, and computer systems maintained by the Servicer at such
times as the Issuer or the Indenture Trustee direct, but only upon reasonable notice and during the
normal business hours at the respective offices of the Servicer.

     (d) Release of Documents. Upon written instructions from the Indenture Trustee, the
Servicer will release or cause to be released any document in the Receivable Files to the Indenture
Trustee, the Indenture Trustee’s agent or the Indenture Trustee’s designee, as the case may be, at
such place or places as the Indenture Trustee may designate, as soon thereafter as is practicable.
Any document so released will be handled by the Indenture Trustee with due care and returned to the
Servicer for safekeeping as soon as the Indenture Trustee or its agent or designee, as the case may
be, has no further need therefor.

     (e) Instructions; Authority to Act. All instructions from the Indenture Trustee will
be in writing and signed by an Authorized Officer of the Indenture Trustee, and the Servicer will
be deemed to have received proper instructions with respect to the Receivable Files upon its
receipt of such written instructions.

     (f) Custodian’s Indemnification. Subject to Section 6.2, the Servicer as
custodian will indemnify the Issuer and the Indenture Trustee for any and all liabilities,
obligations, losses, compensatory damages, payments, costs, or expenses of any kind whatsoever that
may be imposed on, incurred by, or asserted against the Issuer or the Indenture Trustee as the
result of any improper act or omission in any way relating to the maintenance and custody by the
Servicer as custodian of the Receivable Files; provided, however, that the Servicer will not be
liable (i) to the Issuer for any portion of any such amount resulting from the willful misconduct,
bad faith or negligence of the Indenture Trustee or the Issuer or (ii) to the Indenture Trustee for
any portion of any such amount resulting from the failure of the Indenture Trustee, the Indenture
Trustee’s agent or the Indenture Trustee’s designee to handle with due care any Certificate of
Title or other document released to the Indenture Trustee or the Indenture Trustee’s agent or
designee pursuant to Section 2.4(d).

     (g) Effective Period and Termination. The Servicer’s appointment as custodian will
become effective as of the Cut-Off Date and will continue in full force and effect until terminated
pursuant to this Section. If VCI resigns as Servicer in accordance with the provisions of this
Agreement or if all of the rights and obligations of the Servicer have been terminated under
Section 7.1, the appointment of the Servicer as custodian hereunder may be terminated by
the Indenture Trustee, or by the Noteholders of Notes evidencing not less than a majority of the

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Outstanding Notes, in the same manner as the Indenture Trustee or such Noteholders may terminate
the rights and obligations of the Servicer under Section 7.1. As soon as practicable after
any termination of such appointment, the Servicer will deliver to the Indenture Trustee (or, at the
direction of the Indenture Trustee to its agent) the Receivable Files and the related accounts and
records maintained by the Servicer at such place or places as the Indenture Trustee may reasonably
designate.

ARTICLE III

ADMINISTRATION AND SERVICING OF

RECEIVABLES AND TRUST PROPERTY

     SECTION 3.1 Duties of Servicer.

     (a) The Servicer is hereby appointed by the Issuer and authorized to act as agent for the
Issuer and in such capacity shall manage, service, administer and make collections on the
Receivables in accordance with its Customary Servicing Practices, using the degree of skill and
attention that the Servicer exercises with respect to all comparable motor vehicle receivables that
it services for itself or others. The Servicer’s duties will include collection and posting of all
payments, responding to inquiries of Obligors on such Receivables, investigating delinquencies,
sending invoices or payment coupons to Obligors, reporting any required tax information to
Obligors, accounting for collections and furnishing monthly and annual statements to the Indenture
Trustee with respect to distributions. The Servicer is not required under the Transaction
Documents to make any disbursements via wire transfer or otherwise on behalf of an Obligor. There
are no requirements under the Receivables or the Transaction Documents for funds to be, and funds
shall not be, held in trust for an Obligor. No payments or disbursements shall be made by the
Servicer on behalf of the Obligor. The Servicer hereby accepts such appointment and authorization
and agrees to perform the duties of Servicer with respect to the Receivables set forth herein.

     (b) The Servicer will follow its Customary Servicing Practices and will have full power and
authority to do any and all things in connection with such managing, servicing, administration and
collection that it may deem necessary or desirable. Without limiting the generality of the
foregoing, the Servicer is hereby authorized and empowered to execute and deliver, on behalf of
itself, the Issuer, the Owner Trustee, the Indenture Trustee, the Noteholders, the
Certificateholder, or any of them, any and all instruments of satisfaction or cancellation, or
partial or full release or discharge, and all other comparable instruments, with respect to such
Receivables or to the Financed Vehicles securing such Receivables. The Servicer is hereby
authorized to commence, in its own name or in the name of the Issuer, a legal proceeding to
enforce a Receivable or to commence or participate in any other legal proceeding (including a
bankruptcy proceeding) relating to or involving a Receivable, an Obligor or a Financed Vehicle. If
the Servicer commences a legal proceeding to enforce a Receivable, the Issuer will thereupon be
deemed to have automatically assigned such Receivable to the Servicer solely for purposes of
commencing or participating in any such proceeding as a party or claimant, and the Servicer is
authorized and empowered by the Issuer to execute and deliver in the Servicer’s name any notices,
demands, claims, complaints, responses, affidavits or other documents or instruments in connection
with any such proceeding. If in any enforcement suit or legal proceeding it is held

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that the
Servicer may not enforce a Receivable on the ground that it is not a real party in interest or a
holder entitled to enforce the Receivable, the Issuer will, at the Servicer’s expense and
direction, take steps to enforce the Receivable, including bringing suit in its name or the name of
the Indenture Trustee. The Issuer will furnish the Servicer with any powers of attorney and other
documents reasonably necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder. The Servicer, at its expense, will obtain on behalf of the Issuer
all licenses, if any, reasonably requested by the Seller to be held by the Issuer in connection
with ownership of the Receivables, and will make all filings and pay all fees as may be required in
connection therewith during the term hereof.

     (c) The Servicer hereby agrees that upon its resignation and the appointment of a successor
Servicer hereunder, the Servicer will terminate its activities as Servicer hereunder in accordance
with Section 7.1, and, in any case, in a manner which the Indenture Trustee reasonably
determines will facilitate the transition of the performance of such activities to such successor
Servicer, and the Servicer shall cooperate with and assist such successor Servicer.

     SECTION 3.2 Collection of Receivable Payments. (a) The Servicer will make reasonable
efforts to collect all payments called for under the terms and provisions of the Receivables as and
when the same become due in accordance with its Customary Servicing Practices. Subject to
Section 3.5, the Servicer may grant extensions, rebates, deferrals, amendments,
modifications or adjustments with respect to any Receivable in accordance with its Customary
Servicing Practices; provided, however, that if the Servicer (i) extends the date for final payment
by the Obligor of any Receivable beyond the last day of the Collection Period preceding the latest
Final Scheduled Payment Date of any Notes issued under the Indenture or (ii) reduces the Contract
Rate or Outstanding Principal Balance with respect to any Receivable other than as required by
applicable law (including, without limitation, by the Servicemembers Civil Relief Act), it will
promptly purchase such Receivable in the manner provided in Section 3.6. The Servicer may
in its discretion waive any late payment charge or any other fees that may be collected in the
ordinary course of servicing a Receivable. The Servicer shall not be required to make any advances
of funds or guarantees regarding collections, cash flows or distributions other than as set forth
in Section 4.3(c). Payments on the Receivables, including payoffs, made in accordance with
the related documentation for such Receivables, shall be posted to the Servicer’s Obligor records
in accordance with the Servicer’s Customary Servicing Practices. Such payments shall be allocated
to principal, interest or other items in accordance with the related documentation for such
Receivables.

     (b) Subject to the proviso of the second sentence of this Section 3.2(a), the Servicer
and its Affiliates may engage in any marketing practice or promotion or any sale of any products,
goods or services to Obligors with respect to the Receivables so long as such practices, promotions
or sales are offered to obligors of comparable motor vehicle receivables serviced by the Servicer
for itself and others, whether or not such practices, promotions or sales might result in a
decrease in the aggregate amount of payments on the Receivables, prepayments or faster or slower
timing of the payment of the Receivables.

     (c) Notwithstanding anything in this Agreement to the contrary, the Servicer may refinance any
Receivable and deposit the full Outstanding Principal Balance of such Receivable into the
Collection Account. The receivable created by such refinancing shall not be property of

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the
Issuer. The Servicer and its Affiliates may also sell insurance or debt cancellation products,
including products which result in the cancellation of some or all of the amount of a Receivable
upon the death or disability of the Obligor or any casualty with respect to the Financed Vehicle.

     (d) Records documenting collection efforts shall be maintained during the period a Receivable
is delinquent in accordance with the Servicer’s Customary Servicing Practices. Such records shall
be maintained on at least a periodic basis that is not less frequent than the Servicer’s Customary
Servicing Practices, and describe the entity’s activities in monitoring delinquent pool assets
including, for example, phone calls, letters and payment rescheduling plans in cases where
delinquency is deemed temporary (e.g., illness or unemployment) in accordance with the Servicer’s
Customary Servicing Practices.

     SECTION 3.3 Realization Upon Receivables. On behalf of the Issuer, the Servicer will
use commercially reasonable efforts, consistent with its Customary Servicing Practices, to
repossess or otherwise convert the ownership of the Financed Vehicle securing any Receivable as to
which the Servicer has determined eventual payment in full is unlikely unless it determines in its
sole discretion that repossession will not increase the Liquidation Proceeds by an amount greater
than the expense of such repossession or that the proceeds ultimately recoverable with respect to
such Receivable would be increased by forbearance. The Servicer will follow such Customary
Servicing Practices as it deems necessary or advisable, which may include reasonable efforts to
realize upon any recourse to any Dealer and selling the Financed Vehicle at public or private sale.
The foregoing will be subject to the provision that, in any case in which the Financed Vehicle has
suffered damage, the Servicer shall not be required to expend funds in connection with the repair
or the repossession of such Financed Vehicle unless it determines in its sole discretion that such
repair and/or repossession will increase the Liquidation Proceeds by an amount greater than the
amount of such expenses. The Servicer, in its sole discretion, may in accordance with its
Customary Servicing Practices sell any Receivable’s deficiency balance. Net proceeds of any such
sale allocable to the Receivable will constitute Liquidation Proceeds, and the sole right of the
Issuer and the Indenture Trustee with respect to any such sold Receivables will be to receive such
Liquidation Proceeds. Upon such sale, the Servicer will mark its computer records indicating that
any such receivable sold is no longer a Receivable. The Servicer is authorized to take any and all
actions necessary or appropriate on behalf of the Issuer to evidence the sale of the Receivable
free from any Lien or other interest of the Issuer or the Indenture Trustee.

     SECTION 3.4 Maintenance of Security Interests in Financed Vehicles. The Servicer
will, in accordance with its Customary Servicing Practices, take such steps as are necessary to
maintain perfection of the security interest created by each Receivable in the related Financed
Vehicle. The provisions set forth in this Section are the sole requirements under the Transaction
Documents with respect to the maintenance of collateral or security on the Receivables. It is
understood that the Financed Vehicles are the collateral and security for the Receivables, but that
the certificate of title with respect to a Financed Vehicle does not constitute collateral and
merely evidences such security interest. The Issuer hereby authorizes the Servicer to take such
steps as are necessary to re-perfect such security interest on behalf of the Issuer and the
Indenture Trustee in the event of the relocation of a Financed Vehicle or for any other reason.

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     SECTION 3.5 Covenants of Servicer. Unless required by law or court order, the
Servicer will not release the Financed Vehicle securing each such Receivable from the security
interest granted by such Receivable in whole or in part except in the event of payment in full by
or on behalf of the Obligor thereunder or payment in full less a deficiency which the Servicer
would not attempt to collect in accordance with its Customary Servicing Practices or in connection
with repossession or except as may be required by an insurer in order to receive proceeds from any
Insurance Policy covering such Financed Vehicle.

     SECTION 3.6 Purchase of Receivables Upon Breach. Upon discovery by any party hereto
of a breach of any of the covenants set forth in Section 3.2, 3.3, 3.4 or
3.5 which materially and adversely affects the interests of the Issuer or the Noteholders,
the party discovering such breach shall give prompt written notice thereof to the other parties
hereto; provided that delivery of the Servicer’s Certificate shall be deemed to constitute prompt
notice by the Servicer and the Issuer of such breach; provided, further, that the failure to give
such notice shall not affect any obligation of the Servicer hereunder. If the Servicer does not
correct or cure such breach prior to the end of the Collection Period which includes the 60th day
(or, if the Servicer elects, an earlier date) after the date that the Servicer became aware or was
notified of such breach, then the Servicer shall purchase any Receivable materially and adversely
affected by such breach from the Issuer on the Payment Date following the end of such Collection
Period. Any such breach or failure will not be deemed to have a material and adverse effect if
such breach or failure does not affect the ability of the Issuer to receive and retain timely
payment in full on such Receivable. Any such purchase by the Servicer shall be at a price equal to
the Repurchase Price. In consideration for such repurchase, the Servicer shall make (or shall
cause to be made) a payment to the Issuer equal to the Repurchase Price by depositing such amount
into the Collection Account prior to 11:00 a.m., New York City time on such Payment Date. Upon
payment of such Repurchase Price by the Servicer, the Issuer and the Indenture Trustee shall
release and shall execute and deliver such instruments of release, transfer or assignment, in each
case without recourse or representation, as shall be reasonably necessary to vest in the Servicer
or its designee any Receivable repurchased pursuant hereto. It is understood and agreed that the
obligation of the Servicer to purchase any Receivable as described above shall constitute the sole
remedy respecting such breach available to the Issuer and the Indenture Trustee.

     SECTION 3.7 Servicing Fee. On each Payment Date, the Issuer shall pay to the Servicer
the Servicing Fee in accordance with Section 4.4 for the immediately preceding
Collection Period as compensation for its services. In addition, the Servicer will be
entitled to retain all Supplemental Servicing Fees. The Servicer also will be entitled to receive
investment earnings (net of investment losses and expenses) on funds deposited in the Collection
Account and the Principal Distribution Account during each Collection Period.

     SECTION 3.8 Servicer’s Certificate. On or before the Determination Date preceding
each Payment Date, the Servicer shall deliver to the Indenture Trustee and each Paying Agent, and
the Indenture Trustee shall forward such copy to each of the Rating Agencies, a Servicer’s
Certificate containing all information necessary to make the payments, transfers and distributions
pursuant to Sections 4.3 and 4.4 on such Payment Date, together with the written
statements to be furnished by the Indenture Trustee to the Noteholders pursuant to Section
4.6 hereof and Section 6.6 of the Indenture. At the sole option of the Servicer, each
Servicer’s Certificate may be delivered in electronic or hard copy format.

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     SECTION 3.9 Annual Officer’s Certificate; Notice of Servicer Replacement Event. (a)
The Servicer will deliver to the Rating Agencies, the Issuer and the Indenture Trustee, on or
before March 30 of each year, beginning on [   ], an Officer’s Certificate (with appropriate
insertions) providing such information as is required under Item 1123 of Regulation AB.

     (b) The Servicer will deliver to the Issuer, the Indenture Trustee and each Rating Agency
promptly after having obtained knowledge thereof, written notice in an Officer’s Certificate of any
event which with the giving of notice or lapse of time, or both, would become a Servicer
Replacement Event. Except to the extent set forth in this Section 3.9(b) and Sections
7.2 and 9.22 of this Agreement and Section 3.12 of the Indenture, the
Transaction Documents do not require any policies or procedures to monitor any performance or other
triggers and events of default.

     (c) The Servicer will deliver to the Issuer, on or before March 30 of each year, beginning on
[   ], a report regarding the Servicer’s assessment of compliance with the Servicing Criteria during
the immediately preceding calendar year, including disclosure of any material instance of
non-compliance identified by the Servicer, as required under paragraph (b) of Rule 13a-18, Rule
15d-18 of the Exchange Act and Item 1122 of Regulation AB.

     SECTION 3.10 Annual Registered Public Accounting Firm Attestation. On or before the
90th day following the end of each fiscal year, beginning with the fiscal year ending [        ],
the Servicer shall cause a firm of independent registered public accountants (who may also render
other services to the Servicer, the Seller or their respective Affiliates) to furnish to the
Indenture Trustee, the Servicer, the Seller and each Rating Agency each attestation report on
assessments of compliance with the Servicing Criteria with respect to the Servicer or any Affiliate
thereof during the related fiscal year delivered by such accountants pursuant to paragraph (c) of
Rule 13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The certification
required by this paragraph may be replaced by any similar certification using other procedures or
attestation standards which are now or in the future in use by servicers of comparable assets, or
which otherwise comply with any rule, regulation, “no action” letter or similar guidance
promulgated by the Commission.

     SECTION 3.11 Servicer Expenses. The Servicer shall pay all expenses (other than
expenses described in the definition of Liquidation Proceeds) incurred by it in connection with its
activities hereunder, including fees, expenses, indemnities and disbursements of the Indenture
Trustee, the Owner Trustee (as more fully described in Sections 8.1 and 8.2 of the
Trust Agreement), independent accountants, taxes imposed on the Servicer and expenses incurred in
connection with distributions and reports to the Noteholders and the Certificateholder.

     SECTION 3.12 1934 Act Filings. The Issuer hereby authorizes the Servicer and the
Seller, or either of them, to prepare, sign, certify and file any and all reports, statements and
information respecting the Issuer and/or the Notes required to be filed pursuant to the Exchange
Act, as amended, and the rules thereunder.

ARTICLE IV

DISTRIBUTIONS; ACCOUNTS;

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STATEMENTS TO THE CERTIFICATEHOLDER

AND THE NOTEHOLDERS

     SECTION 4.1 Establishment of Accounts. (a) The Servicer shall cause to be
established:

	 	(i)	 	For the benefit of the Noteholders, in the name of the
Indenture Trustee, an Eligible Account (the “Collection Account”), bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Noteholders, which Eligible Account shall be established by
and maintained with the Indenture Trustee or its designee.
	 
	 	(ii)	 	For the benefit of the Noteholders, in the name of the
Indenture Trustee, an Eligible Account (the “Principal Distribution Account”),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Noteholders, which Eligible Account shall be
established by and maintained with the Indenture Trustee or its designee.
	 
	 	(iii)	 	For the benefit of the Noteholders, in the name of the
Indenture Trustee, an Eligible Account (the “Reserve Account”), bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Noteholders, which Eligible Account shall be established by
and maintained with the Indenture Trustee or its designee.

     (b) Funds on deposit in the Collection Account, the Reserve Account and the Principal
Distribution Account (collectively, the “Trust Accounts”) shall be invested by the Indenture
Trustee in Permitted Investments selected in writing by the Servicer and of which the Servicer
provides notification (pursuant to standing instructions or otherwise); provided that it is
understood and agreed that neither the Servicer, the Indenture Trustee nor the Issuer shall be
liable for any loss arising from such investment in Permitted Investments. All such Permitted
Investments shall be held by or on behalf of the Indenture Trustee as secured party for the
benefit of the Noteholders; provided that on each Payment Date all interest and other investment
income (net of losses and investment expenses) on funds on deposit in the Collection Account and
the Principal Distribution Account shall be distributed to the Servicer and shall not be available
to pay the distributions provided for in Section 4.4. All investments of funds on deposit
in the Trust Accounts shall mature so that such funds will be available on the next Payment Date.
No Permitted Investment shall be sold or otherwise disposed of prior to its scheduled maturity
unless a default occurs with respect to such Permitted Investment and the Servicer directs the
Indenture Trustee in writing to dispose of such Permitted Investment.

     (c) The Indenture Trustee shall possess all right, title and interest in all funds on deposit
from time to time in the Trust Accounts and in all proceeds thereof and all such funds, investments
and proceeds shall be part of the Trust Estate. Except as otherwise provided herein, the Trust
Accounts shall be under the sole dominion and control of the Indenture Trustee for the benefit of
the Noteholders. If, at any time, any Trust Account ceases to be an Eligible Account, the Servicer
shall promptly notify the Indenture Trustee in writing (unless such Trust Account is an account
with the Indenture Trustee) and within 10 Business Days (or such longer period as to

10

 

which each
Rating Agency may consent) after becoming aware of the fact, establish a new Trust Account as an
Eligible Account and shall direct the Indenture Trustee to transfer any cash and/or any investments
to such new Trust Account.

     (d) With respect to the Trust Account Property, the parties hereto agree that:

	 	(i)	 	any Trust Account Property that consists of uninvested funds
shall be held solely in Eligible Accounts and, except as otherwise provided
herein, each such Eligible Account shall be subject to the exclusive custody
and control of the Indenture Trustee, and, except as otherwise provided in the
Transaction Documents, the Indenture Trustee or its designee shall have sole
signature authority with respect thereto;
	 
	 	(ii)	 	any Trust Account Property that constitutes Physical Property
shall be delivered to the Indenture Trustee or its designee, in accordance with
paragraph (a) of the definition of “Delivery” and shall be held, pending
maturity or disposition, solely by the Indenture Trustee or any such designee;
	 
	 	(iii)	 	any Trust Account Property that is an “uncertificated
security” under Article 8 of the UCC and that is not governed by clause (iv)
below shall be delivered to the Indenture Trustee or its designee in accordance
with paragraph (c) of the definition of “Delivery” and shall be maintained by
the Indenture Trustee or such designee, pending maturity or disposition,
through continued registration of the Indenture Trustee’s (or its designee’s)
ownership of such security on the books of the issuer thereof; and
	 
	 	(iv)	 	any Trust Account Property that is an uncertificated security
that is a “book-entry security” (as such term is defined in Federal Reserve
Bank Operating Circular No. 7) held in a securities account at a Federal
Reserve Bank and eligible for transfer through the Fedwire® Securities Service
operated by the Federal Reserve System pursuant to Federal book-entry
regulations shall be delivered in accordance with paragraph (b) of the
definition of “Delivery” and shall be maintained by the Indenture Trustee or
its designee or a securities intermediary (as such term is defined in Section
8-102(a)(14) of the UCC) acting solely for the Indenture Trustee or such
designee, pending maturity or disposition, through continued book-entry
registration of such Trust Account Property as described in such paragraph.

     (e) Except for the Collection Account, the Reserve Account and the Principal Distribution
Account, there are no accounts required to be maintained under the Transaction Documents. No
checks shall be issued, printed or honored with respect to the Collection Account, the Reserve
Account or the Principal Distribution Account.

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     SECTION 4.2 Remittances. The Servicer shall deposit an amount equal to all
Collections into the Collection Account within two Business Days after identification; provided,
however, that if the Monthly Remittance Condition is satisfied, then the Servicer shall not be
required to deposit into the Collection Account an amount equal to the Collections received during
any Collection Period until 11:00 a.m., New York City time, on the following Payment Date,
provided, further, that if the Collection Account is not maintained at the Indenture Trustee, then
deposits into the Collection Account shall be made on the Business Day preceding each Payment Date
(so long as the Monthly Remittance Condition is met). The “Monthly Remittance Condition”
shall be deemed to be satisfied if (i) VCI is the Servicer, (ii) no Servicer Replacement Event has
occurred and is continuing and (iii)(x) Volkswagen AG has a short-term debt rating of at least
“P-1” from Moody’s and “A-1” from Standard & Poor’s, (y) both Moody’s and Standard & Poor’s are
then rating a debt issuance of Volkswagen of America, Inc. or VCI (and, in the case of VCI, such
debt issuance is guaranteed by Volkswagen AG) and (z) VCI remains a direct or indirect wholly-owned
subsidiary of Volkswagen AG. Notwithstanding the foregoing, the Servicer may remit Collections to
the Collection Account on any other alternate remittance schedule (but not later than the related
Payment Date) if the Rating Agency Condition is satisfied with respect to such alternate remittance
schedule. Pending deposit into the Collection Account, Collections may be commingled and used by
the Servicer at its own risk and are not required to be segregated from its own funds.

     SECTION 4.3 Additional Deposits and Payments; Servicer Advances. (a) On each Payment
Date, the Servicer and the Seller will deposit into the Collection Account the aggregate Repurchase
Price with respect to Repurchased Receivables purchased by the Servicer or the Seller,
respectively, on such Payment Date and the Servicer will deposit into the Collection Account all
amounts, if any, to be paid under Section 8.1 in connection with the Optional Purchase.
All such deposits with respect to a Payment Date will be made, in immediately
available funds by 11:00 a.m., New York City time, on such Payment Date related to such
Collection Period.

     (b) The Indenture Trustee will, on each Payment Date, withdraw from the Reserve Account the
Reserve Account Excess Amount, if any, for such Payment Date and deposit such amounts in the
Collection Account.

     (c) On each Payment Date, the Servicer shall deposit into the Collection Account prior to
11:00 a.m., New York City time, an advance in an amount equal to the lesser of (a) any shortfall in
the amounts available to make the payments in clauses first through fourth of Section
4.4(a) and (b) the aggregate scheduled monthly payments due on Receivables but not received
during and prior to the related Collection Period (an “Advance”); provided, however, that
the Servicer will not be obligated to make an Advance if the Servicer reasonably determines in its
sole discretion that such Advance is not likely to be repaid from future cash flows from the
Receivables. No Advances will be made with respect to Defaulted Receivables.

     (d) The Indenture Trustee will, on the Payment Date relating to each Collection Period,
withdraw from the Reserve Account the Reserve Account Draw Amount and deposit such amounts in the
Collection Account.

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     (e) On the Closing Date the Seller will deposit, or cause to be deposited from proceeds of the
sale of the Notes, into the Reserve Account an amount equal to the Initial Reserve Account Deposit
Amount.

     SECTION 4.4 Distributions.

     (a) Prior to any acceleration of the Notes pursuant to Section 5.2 of the Indenture,
on each Payment Date, the Indenture Trustee (based on information contained in, and as directed by,
the Servicer’s Certificate delivered on or before the related Determination Date pursuant to
Section 3.8) shall make the following deposits and distributions, to the extent of
Available Funds, Advances made on such Payment Date pursuant to Section 4.3(c) and the
Reserve Account Draw Amount, on deposit in the Collection Account for such Payment Date, in the
following order of priority:

	 	(i)	 	first, to the Servicer (or any predecessor Servicer, if
applicable) for reimbursement of all outstanding Advances;
	 
	 	(ii)	 	second, to the Servicer, the Servicing Fee and all unpaid
Servicing Fees with respect to prior periods;
	 
	 	(iii)	 	third, to the Noteholders, the Accrued Note Interest for the
related Interest Period; provided that if there are not sufficient funds
available to pay the entire amount of the Accrued Note Interest, the amounts
available will be applied to the payment of such interest on the Notes on a pro
rata basis;
	 
	 	(iv)	 	fourth, to the Principal Distribution Account for distribution
to the Noteholders pursuant to Section 8.2(c) of the Indenture, the
Noteholders’ Principal Distribution Amount;
	 
	 	(v)	 	fifth, to the Reserve Account, any additional amounts required
to increase the amount in the Reserve Account up to the Specified Reserve
Account Balance;
	 
	 	(vi)	 	sixth, to the Owner Trustee and the Indenture Trustee, fees and
expenses (including indemnification amounts) permitted under the Trust
Agreement and the Indenture, as applicable, which have not been previously
paid; and
	 
	 	(vii)	 	seventh, to or at the direction of the Certificateholder, any
funds remaining.

Notwithstanding any other provision of this Section 4.4, following the occurrence and
during the continuation of an Event of Default which has resulted in an acceleration of the Notes,
the Indenture Trustee shall apply all amounts on deposit in the Collection Account pursuant to
Section 5.4(b) of the Indenture.

     (b) After the payment in full of the Notes and all other amounts payable under Section
4.4(a), all Collections shall be paid to or in accordance with the instructions provided from
time to time by the Certificateholder.

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     (c) Notwithstanding any statement to the contrary contained in any of the Transaction
Documents, if the Class A-1 Notes remain outstanding at that time, all payments, deposits and
withdrawals required to be made on the Payment Date in [  ] shall be made on the Class A-1 Final
Scheduled Payment Date, except that payments of interest and principal on the Class A-2 Notes,
Class A-3 Notes and Class A-4 Notes shall be paid on the applicable Payment Date in [  ].

     SECTION 4.5 Net Deposits. If the Monthly Remittance Condition is satisfied, the
Servicer shall be permitted to deposit into the Collection Account only the net amount
distributable to Persons other than the Servicer and its Affiliates on the Payment Date. The
Servicer shall, however, account as if all of the deposits and distributions described herein were
made individually.

     SECTION 4.6 Statements to Certificateholder and Noteholders. On or before each
Determination Date, the Servicer shall deliver to the Indenture Trustee and each Paying Agent, and
the Indenture Trustee shall forward such copy to each of the Rating Agencies and to each Noteholder
of record as of the most recent Record Date, a statement setting forth for the Collection Period
and Payment Date relating to such Determination Date the following information (to the extent
applicable):

     (a) the aggregate amount being paid on such Payment Date in respect of interest on and
principal of each Class of Notes;

     (b) the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3 Note Balance, the
Class A-4 Note Balance and the Certificate Balance, in each case after giving effect to payments on
such Payment Date;

     (c) (i) the amount on deposit in the Reserve Account and the Specified Reserve Account
Balance, each as of the beginning and end of the related Collection Period, (ii) the amount
deposited in the Reserve Account in respect of such Payment Date, if any, (iii) the Reserve Account
Draw Amount and the Reserve Account Excess Amount, if any, to be withdrawn from the Reserve Account
on such Payment Date, (iv) the balance on deposit in the Reserve Account on such Payment Date after
giving effect to withdrawals therefrom and deposits thereto in respect of such Payment Date and (v)
the change in such balance from the immediately preceding Payment Date;

     (d) the Principal Distribution Amount for such Payment Date;

     (e) the Net Pool Balance and the Note Factor as of the close of business on the last day of
the preceding Collection Period;

     (f) the amount of the Servicing Fee to be paid to the Servicer with respect to the related
Collection Period and the amount of any unpaid Servicing Fees;

     (g) the amount of the Noteholders’ Interest Carryover Shortfall, if any, on such Payment Date
and the change in such amounts from the preceding Payment Date;

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     (h) the aggregate Repurchase Price with respect to Repurchased Receivables paid by (i) the
Servicer and (ii) the Seller with respect to the related Collection Period;

     (i) the amount of Advances, if any, on such Payment Date; and

     (j) the amount of Collections for the related Collection Period.

Each amount set forth pursuant to paragraph (a) or (g) above relating to the Notes shall be
expressed as a dollar amount per $1,000 of the Initial Note Balance of the Notes (or Class
thereof).

     No disbursements shall be made directly by the Servicer to a Noteholder, and the Servicer
shall not be required to maintain any investor record relating to the posting of disbursements or
otherwise.

     The Indenture Trustee will make available via the Indenture Trustee’s internet website all
reports or notices required to be provided by the Indenture Trustee under this Section 4.6,
provided, however, that the Indenture Trustee, shall, if requested by any Rating Agency, deliver
any reports or notices under this Section 4.6 in writing to such Rating Agency. Any
information
that is disseminated in accordance with the provisions of this Section 4.6 shall not
be required to be disseminated in any other form or manner; provided, however, any such information
that must be delivered to the Rating Agencies under this Section 4.6 shall be sent by
electronic mail to each Rating Agency. The Indenture Trustee will make no representations or
warranties as to the accuracy or completeness of such documents and will assume no responsibility
therefor.

     The Indenture Trustee’s internet website shall be initially located at “[  ]” or at such other
address as shall be specified by the Indenture Trustee from time to time in writing to the
Noteholders, the Servicer, the Issuer or any Paying Agent. In connection with providing access to
the Indenture Trustee’s internet website, the Indenture Trustee may require registration and the
acceptance of a disclaimer. The Indenture Trustee shall not be liable for the dissemination of
information in accordance with this Agreement.

     SECTION 4.7 No Duty to Confirm. The Indenture Trustee shall have no duty or
obligation to verify or confirm the accuracy of any of the information or numbers set forth in the
Servicer’s Certificate delivered by the Servicer to the Indenture Trustee, and the Indenture
Trustee shall be fully protected in relying upon such Servicer’s Certificate.

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ARTICLE V

THE SELLER

     SECTION 5.1 Representations and Warranties of Seller. The Seller makes the following
representations and warranties as of the Closing Date on which the Issuer will be deemed to have
relied in acquiring the Transferred Assets. The representations and warranties speak as of the
execution and delivery of this Agreement and will survive the conveyance of the Transferred Assets
to the Issuer and the pledge thereof by the Issuer to the Indenture Trustee pursuant to the
Indenture:

     (a) Existence and Power. The Seller is a Delaware limited liability company validly
existing and in good standing under the laws of the State of Delaware and has, in all material
respects, all power and authority required to carry on its business as it is now conducted. The
Seller has obtained all necessary licenses and approvals in each jurisdiction where the failure to
do so would materially and adversely affect the ability of the Seller to perform its obligations
under the Transaction Documents or affect the enforceability or collectibility of the Receivables
or any other part of the Transferred Assets.

     (b) Authorization and No Contravention. The execution, delivery and performance by
the Seller of each Transaction Document to which it is a party (i) have been duly authorized by all
necessary limited liability company action on the part of the Seller and (ii) do not contravene or
constitute a default under (A) any applicable law, rule or regulation, (B) its organizational
documents or (C) any material agreement, contract, order or other instrument to which it is a party
or its property is subject (other than violations which do not affect the legality, validity or
enforceability of any of such agreements and which, individually or in the aggregate,
would not materially and adversely affect the transactions contemplated by, or the Seller’s
ability to perform its obligations under, the Transaction Documents).

     (c) No Consent Required. No approval or authorization by, or filing with, any
Governmental Authority is required in connection with the execution, delivery and performance by
the Seller of any Transaction Document other than (i) UCC filings, (ii) approvals and
authorizations that have previously been obtained and filings that have previously been made and
(iii) approvals, authorizations or filings which, if not obtained or made, would not have a
material adverse effect on the enforceability or collectibility of the Receivables or any other
part of the Transferred Assets or would not materially and adversely affect the ability of the
Seller to perform its obligations under the Transaction Documents.

     (d) Binding Effect. Each Transaction Document to which the Seller is a party
constitutes the legal, valid and binding obligation of the Seller enforceable against the Seller in
accordance with its terms, except as such enforceability may be limited by applicable bankruptcy,
insolvency, reorganization, moratorium, receivership, conservatorship or other similar laws
affecting creditors’ rights generally and, if applicable, the rights of creditors of limited
liability companies from time to time in effect or by general principles of equity.

     (e) Lien Filings. The Seller is not aware of any material judgment, ERISA or tax lien
filings against the Seller.

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     (f) No Proceedings. There are no actions, suits or proceedings pending or, to the
knowledge of the Seller, threatened against the Seller before or by any Governmental Authority that
(i) assert the invalidity or unenforceability of this Agreement or any of the other Transaction
Documents, (ii) seek to prevent the issuance of the Notes or the consummation of any of the
transactions contemplated by this Agreement or any of the other Transaction Documents, (iii) seek
any determination or ruling that would materially and adversely affect the performance by the
Seller of its obligations under this Agreement or any of the other Transaction Documents or the
collectibility or enforceability of the Receivables, or (iv) relate to the Seller that would
materially and adversely affect the federal or Applicable Tax State income, excise, franchise or
similar tax attributes of the Notes.

     SECTION 5.2 Liability of Seller; Indemnities. The Seller shall be liable in
accordance herewith only to the extent of the obligations specifically undertaken by the Seller
under this Agreement, and hereby agrees to the following:

     (a) The Seller shall indemnify, defend, and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders and the Certificateholder from and against any loss, liability
or expense incurred by reason of the Seller’s violation of federal or State securities laws in
connection with the registration or the sale of the Notes.

     (b) The Seller will pay any and all taxes levied or assessed upon the Issuer or upon all or
any part of the Trust Estate.

     (c) Indemnification under this Section 5.2 will survive the resignation or removal of
the Owner Trustee or the Indenture Trustee and the termination of this Agreement and will include,
without limitation, reasonable fees and expenses of counsel and expenses of litigation. If the
Seller has made any indemnity payments pursuant to this Section 5.2 and the Person to or on
behalf of whom such payments are made thereafter collects any of such amounts from others, such
Person will promptly repay such amounts to the Seller, without interest.

     (d) The Seller’s obligations under this Section 5.2 are obligations solely of the
Seller and will not constitute a claim against the Seller to the extent that the Seller does not
have funds sufficient to make payment of such obligations. In furtherance of and not in derogation
of the foregoing, the Issuer, the Servicer, the Indenture Trustee and the Owner Trustee, by
entering into or accepting this Agreement, acknowledge and agree that they have no right, title or
interest in or to the Other Assets of the Seller. To the extent that, notwithstanding the
agreements and provisions contained in the preceding sentence, the Issuer, the Servicer, the
Indenture Trustee or the Owner Trustee either (i) asserts an interest or claim to, or benefit from,
Other Assets, or (ii) is deemed to have any such interest, claim to, or benefit in or from Other
Assets, whether by operation of law, legal process, pursuant to applicable provisions of insolvency
laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code or any successor
provision having similar effect under the Bankruptcy Code), then the Issuer, the Servicer, the
Indenture Trustee or the Owner Trustee further acknowledges and agrees that any such interest,
claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible
payment in full, which, under the terms of the relevant documents relating to the securitization or
conveyance of such Other Assets, are entitled to be paid from, entitled to the benefits of, or
otherwise secured by such Other Assets (whether or not any such entitlement or security interest

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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 Seller),
including the payment of post-petition interest on such other obligations and liabilities. This
subordination agreement will be deemed a subordination agreement within the meaning of Section
510(a) of the Bankruptcy Code. The Issuer, the Servicer, the Indenture Trustee and the Owner
Trustee each further acknowledges and agrees that no adequate remedy at law exists for a breach of
this Section 5.2(d) and the terms of this Section 5.2(d) may be enforced by an
action for specific performance. The provisions of this Section 5.2(d) will be for the
third party benefit of those entitled to rely thereon and will survive the termination of this
Agreement.

     SECTION 5.3 Merger or Consolidation of, or Assumption of the Obligations of, Seller.
Any Person (i) into which the Seller may be merged or consolidated, (ii) resulting from any merger,
conversion, or consolidation to which the Seller is a party, (iii) succeeding to the business of
the Seller, or (iv) more than 50% of the voting stock or voting power and 50% or more of the
economic equity of which is owned directly or indirectly by Volkswagen AG, which Person in any of
the foregoing cases executes an agreement of assumption to perform every obligation of the Seller
under this Agreement, will be the successor to the Seller under this Agreement without the
execution or filing of any document or any further act on the part of any of the parties to this
Agreement. Notwithstanding the foregoing, if the Seller enters into any of the foregoing
transactions and is not the surviving entity, (x) the Seller shall deliver to the Indenture Trustee
an Officer’s Certificate and an Opinion of Counsel each stating that such
merger, conversion, consolidation or succession and such agreement of assumption comply with
this Section 5.3 and that all conditions precedent, if any, provided for in this Agreement
relating to such transaction have been complied with and (y) the Seller will deliver to the
Indenture Trustee an Opinion of Counsel either (A) stating that, in the opinion of such counsel,
all financing statements and continuation statements and amendments thereto have been executed and
filed that are necessary fully to preserve and protect the interest of the Issuer and the Indenture
Trustee, respectively, in the Receivables, and reciting the details of such filings, or (B) stating
that, in the opinion of such counsel, no such action is necessary to preserve and protect such
interest. The Seller will provide notice of any merger, conversion, consolidation, or succession
pursuant to this Section 5.3 to the Rating Agencies. Notwithstanding anything herein to
the contrary, the execution of the foregoing agreement of assumption and compliance with clauses
(x) and (y) of this Section 5.3 will be conditions to the consummation of any of the
transactions referred to in clauses (i), (ii) or (iii) of this Section 5.3 in which the
Seller is not the surviving entity.

     SECTION 5.4 Limitation on Liability of Seller and Others. The Seller and any officer
or employee or agent of the Seller may rely in good faith on the advice of counsel or on any
document of any kind, prima facie properly executed and submitted by any Person respecting any
matters arising hereunder. The Seller will not be under any obligation to appear in, prosecute, or
defend any legal action that is not incidental to its obligations under this Agreement, and that in
its opinion may involve it in any expense or liability.

     SECTION 5.5 Seller May Own Notes. The Seller, and any Affiliate of the Seller, may in
its individual or any other capacity become the owner or pledgee of Notes with the same rights as
it would have if it were not the Seller or an Affiliate thereof, except as otherwise expressly
provided herein or in the other Transaction Documents. Except as set forth herein or

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 in the other
Transaction Documents, Notes so owned by the Seller or any such Affiliate will have an equal and
proportionate benefit under the provisions of this Agreement and the other Transaction Documents,
without preference, priority, or distinction as among all of the Notes. Notes owned by the Issuer,
Seller, Servicer, Administrator or any of their respective Affiliates shall be disregarded with
respect to the determination of any request, demand, authorization, direction, notice, consent,
vote or waiver hereunder or under any other Transaction Document.

     SECTION 5.6 Sarbanes-Oxley Act Requirements. To the extent any documents are required
to be filed or any certification is required to be made with respect to the Issuer or the Notes
pursuant to the Sarbanes-Oxley Act, the Issuer hereby authorizes the Servicer and the Seller, or
either of them, to prepare, sign, certify and file any such documents or certifications on behalf
of the Issuer.

     SECTION 5.7 Compliance with Organizational Documents. The Seller shall comply with
its limited liability company agreement and other organizational documents.

     SECTION 5.8 Perfection Representations, Warranties and Covenants. The Seller hereby
makes the perfection representations, warranties and covenants attached hereto as Exhibit B to the Issuer and the Indenture Trustee and the Issuer shall be deemed to have
relied on such representations, warranties and covenants in acquiring the Transferred Assets.

ARTICLE VI

THE SERVICER

     SECTION 6.1 Representations of Servicer. The Servicer makes the following
representations and warranties as of the Closing Date on which the Issuer will be deemed to have
relied in acquiring the Transferred Assets. The representations and warranties speak as of the
execution and delivery of this Agreement and will survive the conveyance of the Transferred Assets
to the Issuer and the pledge thereof by the Issuer to the Indenture Trustee pursuant to the
Indenture:

     (a) Existence and Power. The Servicer is a Delaware corporation validly existing and
in good standing under the laws of Delaware and has, in all material respects, all power and
authority to carry on its business as it is now conducted. The Servicer has obtained all necessary
licenses and approvals in each jurisdiction where the failure to do so would materially and
adversely affect the ability of the Servicer to perform its obligations under the Transaction
Documents or affect the enforceability or collectibility of the Receivables or any other part of
the Transferred Assets.

     (b) Authorization and No Contravention. The execution, delivery and performance by
the Servicer of the Transaction Documents to which it is a party (i) have been duly authorized by
all necessary action on the part of the Servicer and (ii) do not contravene or constitute a default
under (A) any applicable law, rule or regulation, (B) its organizational documents or (C) any
material agreement, contract, order or other instrument to which it is a party or its property is
subject (other than violations which do not affect the legality, validity or enforceability of any
of such agreements and which, individually or in the aggregate, would not materially and adversely

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affect the transactions contemplated by, or the Servicer’s ability to perform its obligations
under, the Transaction Documents).

     (c) No Consent Required. No approval or authorization by, or filing with, any
Governmental Authority is required in connection with the execution, delivery and performance by
the Servicer of any Transaction Document other than (i) UCC filings, (ii) approvals and
authorizations that have previously been obtained and filings that have previously been made and
(iii) approvals, authorizations or filings which, if not obtained or made, would not have a
material adverse effect on the enforceability or collectibility of the Receivables or would not
materially and adversely affect the ability of the Servicer to perform its obligations under the
Transaction Documents.

     (d) Binding Effect. Each Transaction Document to which the Servicer is a party
constitutes the legal, valid and binding obligation of the Servicer enforceable against the
Servicer in accordance with its terms, except as such enforceability may be limited by applicable
bankruptcy, insolvency, reorganization, moratorium, receivership, conservatorship or other
similar laws affecting creditors’ rights generally and, if applicable, the rights of creditors
of corporations from time to time in effect or by general principles of equity.

     (e) No Proceedings. There are no actions, suits or proceedings pending or, to the
knowledge of the Servicer, threatened against the Servicer before or by any Governmental Authority
that (i) assert the invalidity or unenforceability of this Agreement or any of the other
Transaction Documents, (ii) seek to prevent the issuance of the Notes or the consummation of any of
the transactions contemplated by this Agreement or any of the other Transaction Documents, (iii)
seek any determination or ruling that would materially and adversely affect the performance by the
Servicer of its obligations under this Agreement or any of the other Transaction Documents, or (iv)
relate to the Servicer that would materially and adversely affect the federal or Applicable Tax
State income, excise, franchise or similar tax attributes of the Notes.

     (f) Fidelity Bond. The Servicer shall not be required to maintain a fidelity bond or
error and omissions policy.

     SECTION 6.2 Indemnities of Servicer. The Servicer will be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the Servicer under this
Agreement, and hereby agrees to the following:

     (a) The Servicer will defend, indemnify and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders, the Certificateholder and the Seller from and against any and
all costs, expenses, losses, damages, claims and liabilities, arising out of or resulting from the
use, ownership or operation by the Servicer or any Affiliate thereof of a Financed Vehicle.

     (b) The Servicer will indemnify, defend and hold harmless the Issuer, the Owner Trustee and
the Indenture Trustee from and against any taxes that may at any time be asserted against any such
Person with respect to the transactions contemplated herein or in the other Transaction Documents,
if any, including, without limitation, any sales, gross receipts, general

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corporation, tangible
personal property, privilege, or license taxes (but, in the case of the Issuer, not including any
taxes asserted with respect to, and as of the date of, the conveyance of the Receivables to the
Issuer or the issuance and original sales of the Notes, or asserted with respect to ownership of
the Receivables, or federal or other Applicable Tax State income taxes arising out of the
transactions contemplated by this Agreement and the other Transaction Documents) and costs and
expenses in defending against the same. For the avoidance of doubt, the Servicer will not
indemnify for any costs, expenses, losses, claims, damages or liabilities due to the credit risk of
the Obligor and for which reimbursement would constitute recourse for uncollectible Receivables.

     (c) The Servicer will indemnify, defend and hold harmless the Issuer, the Owner Trustee, the
Indenture Trustee, the Noteholders, the Certificateholder and the Seller from and against any and
all costs, expenses, losses, claims, damages, and liabilities to the extent that such cost,
expense, loss, claim, damage, or liability arose out of, or was imposed upon any such
Person through, the negligence, willful misfeasance, or bad faith (other than errors in
judgment) of the Servicer in the performance of its duties under this Agreement or any other
Transaction Document to which it is a party, or by reason of its failure to perform its obligations
or of reckless disregard of its obligations and duties under this Agreement or any other
Transaction Document to which it is a party; provided, however, that the Servicer will not
indemnify for any costs, expenses, losses, claims, damages or liabilities arising from its breach
of any covenant for which the repurchase of the affected Receivables is specified as the sole
remedy pursuant to Section 3.6.

     (d) The Servicer will compensate and indemnify the Owner Trustee to the extent and subject to
the conditions set forth in Sections 8.1 and 8.2 of the Trust Agreement. The
Servicer will compensate and indemnify the Indenture Trustee to the extent and subject to the
conditions set forth in Section 6.7 of the Indenture, except to the extent that any cost,
expense, loss, claim, damage or liability arises out of or is incurred in connection with the
performance by the Indenture Trustee of the duties of a successor Servicer hereunder.

     (e) Indemnification under this Section 6.2 by VCI (or any successor thereto pursuant
to Section 7.1) as Servicer, with respect to the period such Person was the Servicer, will
survive the termination of such Person as Servicer or a resignation by such Person as Servicer as
well as the termination of this Agreement and the Trust Agreement or the resignation or removal of
the Owner Trustee or the Indenture Trustee and will include reasonable fees and expenses of counsel
and expenses of litigation. If the Servicer has made any indemnity payments pursuant to this
Section 6.2 and the Person to or on behalf of whom such payments are made thereafter
collects any of such amounts from others, such Person will promptly repay such amounts to the
Servicer, without interest.

     SECTION 6.3 Merger or Consolidation of, or Assumption of the Obligations of, Servicer.
Any Person (i) into which the Servicer may be merged or consolidated, (ii) resulting from any
merger, conversion, or consolidation to which the Servicer is a party, (iii) succeeding to the
business of the Servicer, or (iv) of which Volkswagen AG owns, directly or indirectly, more than
50% of the voting stock or voting power and 50% or more of the economic equity, which Person in any
of the foregoing cases executes an agreement of assumption to perform every obligation of the
Servicer under this Agreement, will be the successor to the Servicer under this

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Agreement without
the execution or filing of any paper or any further act on the part of any of the parties to this
Agreement. Notwithstanding the foregoing, if the Servicer enters into any of the foregoing
transactions and is not the surviving entity, (x) the Servicer shall deliver to the Indenture
Trustee an Officer’s Certificate and an Opinion of Counsel each stating that such merger,
conversion, consolidation, or succession and such agreement of assumption comply with this
Section 6.3 and that all conditions precedent provided for in this Agreement relating to
such transaction have been complied with and (y) the Servicer will deliver to the Indenture Trustee
an Opinion of Counsel either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements and amendments thereto have been executed and filed that are
necessary fully to preserve and protect the interest of the Issuer and the Indenture Trustee,
respectively, in the Receivables, and reciting the details of such filings, or (B) stating that, in
the opinion of such counsel, no such action is necessary to preserve and protect such
interests. The Servicer will provide notice of any merger, conversion, consolidation or
succession pursuant to this Section 6.3 to the Rating Agencies. Notwithstanding anything
herein to the contrary, the execution of the foregoing agreement of assumption and compliance with
clauses (x) and (y) of this Section 6.3 will be conditions to the consummation of any of
the transactions referred to in clauses (i), (ii) or (iii) of this Section 6.3 in which the
Servicer is not the surviving entity.

     SECTION 6.4 Limitation on Liability of Servicer and Others. (a) Neither the Servicer
nor any of the directors or officers or employees or agents of the Servicer will be under any
liability to the Issuer, the Indenture Trustee, the Owner Trustee, the Noteholders or the
Certificateholder, except as provided under this Agreement, for any action taken or for refraining
from the taking of any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision will not protect the Servicer or any such Person against any liability
that would otherwise be imposed by reason of willful misfeasance or bad faith in the performance of
duties or by reason of its failure to perform its obligations or of reckless disregard of
obligations and duties under this Agreement, or by reason of negligence in the performance of its
duties under this Agreement (except for errors in judgment). The Servicer and any director,
officer or employee or agent of the Servicer may rely in good faith on any Opinion of Counsel or on
any Officer’s Certificate of the Seller or certificate of auditors believed to be genuine and to
have been signed by the proper party in respect of any matters arising under this Agreement.

     (b) Except as provided in this Agreement, the Servicer will not be under any obligation to
appear in, prosecute, or defend any legal action that is not incidental to its duties to service
the Receivables in accordance with this Agreement, and that in its opinion may involve it in any
expense or liability; provided, however, that the Servicer may undertake any reasonable action that
it may deem necessary or desirable in respect of this Agreement and the rights and duties of the
parties to this Agreement and the interests of the Noteholders and the Certificateholder under this
Agreement. In such event, the legal expenses and costs of such action and any liability resulting
therefrom will be expenses, costs and liabilities of the Servicer.

     SECTION 6.5 Delegation of Duties. The Servicer may, at any time without notice or
consent, delegate (a) any or all of its duties (including, without limitation, its duties as
custodian) under the Transaction Documents to any of its Affiliates or (b) specific duties to
sub-contractors who are in the business of performing such duties; provided that no such delegation
shall relieve

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the Servicer of its responsibility with respect to such duties and the Servicer shall
remain obligated and liable to the Issuer and the Indenture Trustee for its duties hereunder as if
the Servicer alone were performing such duties.

     SECTION 6.6 VCI Not to Resign as Servicer. Subject to the provisions of Sections
6.3 and 6.5, VCI will not resign from the obligations and duties hereby imposed on it
as Servicer under this Agreement except upon determination that the performance of its duties under
this Agreement is no longer permissible under applicable law. Notice of any such determination
permitting the resignation of VCI will be communicated to the Issuer and the Indenture Trustee at
the earliest practicable time (and, if such communication is not in writing, will be confirmed in
writing at the earliest practicable time) and any such determination will be evidenced by an
Opinion of Counsel to such effect delivered to the Issuer and the Indenture Trustee concurrently
with or promptly after such notice. No such resignation will become effective until a successor
Servicer has (i) assumed the responsibilities and obligations of VCI as Servicer and (ii) provided
in writing the information reasonably requested by the Seller to comply with its reporting
obligation under the Exchange Act with respect to a replacement Servicer.

     SECTION 6.7 Servicer May Own Notes. The Servicer, and any Affiliate of the Servicer,
may, in its individual or any other capacity, become the owner or pledgee of Notes with the same
rights as it would have if it were not the Servicer or an Affiliate thereof, except as otherwise
expressly provided herein or in the other Transaction Documents. Except as set forth herein or in
the other Transaction Documents, Notes so owned by or pledged to the Servicer or such Affiliate
will have an equal and proportionate benefit under the provisions of this Agreement, without
preference, priority or distinction as among all of the Notes.

ARTICLE VII

REPLACEMENT OF SERVICER

     SECTION 7.1 Replacement of Servicer.

     (a) If a Servicer Replacement Event shall have occurred and be continuing, the Indenture
Trustee shall, at the direction of 66-2/3% of the Noteholders, by notice given to the Servicer, the
Owner Trustee, the Issuer, the Administrator, the Noteholders and each Rating Agency, terminate the
rights and obligations of the Servicer under this Agreement with respect to the Receivables. In
the event the Servicer is removed or resigns as Servicer with respect to servicing the Receivables,
the Indenture Trustee shall appoint a successor Servicer. Upon the Servicer’s receipt of notice of
termination the predecessor Servicer will continue to perform its functions as Servicer under this
Agreement only until the date specified in such termination notice or, if no such date is specified
in such termination notice, until receipt of such notice. If a successor Servicer has not been
appointed at the time when the predecessor Servicer ceases to act as Servicer in accordance with
this Section, the Indenture Trustee without further action will automatically be appointed the
successor Servicer. Notwithstanding the above, the Indenture Trustee, if it is legally unable or
is unwilling to so act, will appoint, or petition a court of competent jurisdiction to appoint a
successor Servicer. Any successor Servicer shall be an established institution having a net worth
of not less than $100,000,000 and whose regular

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business includes the servicing of comparable motor
vehicle receivables having an aggregate outstanding principal amount of not less than $50,000,000.

     (b) Noteholders holding not less than a majority of the Outstanding Notes may waive any
Servicer Replacement Event. Upon any such waiver, such Servicer Replacement Event shall cease to
exist and be deemed to have been cured and not to have occurred for every purpose of this
Agreement, but no such waiver shall extend to any prior, subsequent or other Servicer Replacement
Event or impair any right consequent thereto.

     (c) If replaced, the Servicer agrees that it will use commercially reasonable efforts to
effect the orderly and efficient transfer of the servicing of the Receivables to a successor
Servicer. All reasonable costs and expenses incurred in connection with transferring the
Receivable Files to the successor Servicer and all other reasonable costs and expenses incurred in
connection with the transfer to the successor Servicer related to the performance by the Servicer
hereunder will be paid by the predecessor Servicer upon presentation of reasonable documentation of
such costs and expenses.

     (d) Upon the effectiveness of the assumption by the successor Servicer of its duties pursuant
to this Section 7.1, the successor Servicer shall be the successor in all respects to the Servicer
in its capacity as Servicer under this Agreement with respect to the Receivables, and shall be
subject to all the responsibilities, duties and liabilities relating thereto, except with respect
to the obligations of the predecessor Servicer that survive its termination as Servicer, including
indemnification obligations as set forth in Section 6.2(e). In such event, the Indenture Trustee
and the Owner Trustee are hereby authorized and empowered to execute and deliver, on behalf of the
predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other
instruments, and to do or accomplish all other acts or things necessary or appropriate to effect
the purposes of such termination and replacement of the Servicer, whether to complete the transfer
and endorsement of the Receivables and related documents, or otherwise. No Servicer shall resign
or be relieved of its duties under this Agreement, as Servicer of the Receivables, until a newly
appointed Servicer for the Receivables shall have assumed the responsibilities and obligations of
the resigning or terminated Servicer under this Agreement.

     (e) In connection with such appointment, the Indenture Trustee may make such arrangements for
the compensation of the successor Servicer out of Available Funds as it and such successor Servicer
will agree; provided, however, that no such compensation will be in excess of the amount paid to
the predecessor Servicer under this Agreement.

     (f) The predecessor Servicer shall be entitled to receive reimbursement for any outstanding
Advances made with respect to the Receivables to the extent funds are available therefore in
accordance with Section 4.4.

     SECTION 7.2 Notification to Noteholders. Upon any termination of, or appointment of a
successor to, the Servicer pursuant to this Article VII, the Indenture Trustee will give prompt
written notice thereof to the Owner Trustee, the Issuer, the Administrator, each Rating Agency and
to the Noteholders at their respective addresses of record.

24

 

ARTICLE VIII

OPTIONAL PURCHASE

     SECTION 8.1 Optional Purchase of Trust Estate. If VCI is the Servicer, then VCI shall
have the right at its option (the “Optional Purchase”) to purchase the Trust Estate (other
than the Reserve Account) from the Issuer on any Payment Date if, either before or after giving
effect to any payment of principal required to be made on such Payment Date, the aggregate Net Pool
Balance is less than or equal to 10% of the initial Net Pool Balance. The purchase price for the
Trust Estate (other than the Reserve Account) shall equal the greater of (a) the unpaid principal
amount of the Notes plus accrued and unpaid interest thereon (after giving effect to all
distributions pursuant to Section 4.4(a) on that Payment Date) at the applicable Interest
Rate up to but excluding the Redemption Date and (b) the fair market value of the Trust Estate
(other than the Reserve Account) (the “Optional Purchase Price”), which amount shall be
deposited by the Servicer into the Collection Account on the Redemption Date. If VCI, as Servicer,
exercises the Optional Purchase, the Notes shall be redeemed and in each case in whole but not in
part on the related Payment Date for the Redemption Price.

ARTICLE IX

MISCELLANEOUS PROVISIONS

     SECTION 9.1 Amendment.

     (a) Any term or provision of this Agreement may be amended by the Seller and the Servicer
without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Owner Trustee or any
other Person subject to the satisfaction of one of the following conditions:

	 	(i)	 	the Seller or the Servicer delivers an Opinion of Counsel to
the Indenture Trustee to the effect that such amendment will not materially and
adversely affect the interests of the Noteholders;
	 
	 	(ii)	 	the Seller or the Servicer delivers an Officer’s Certificate of
the Seller or Servicer, respectively, to the Indenture Trustee to the effect
that such amendment will not materially and adversely affect the interests of
the Noteholders; or
	 
	 	(iii)	 	the Seller or the Servicer delivers to the Indenture Trustee
written confirmation from each Rating Agency that such amendment will not cause
it to downgrade, qualify or withdraw its rating assigned to any of the Notes;

provided, that no amendment shall be effective which affects the rights, protections or duties of
the Indenture Trustee or the Owner Trustee without the prior written consent of such Person.

     (b) Any term or provision of this Agreement may be amended by the Seller and the Servicer but
without the consent of the Indenture Trustee, any Noteholder, the Issuer, the Owner Trustee or any
other Person to add, modify or eliminate any provisions as may be necessary or

25

 

advisable in order to enable the Seller, the Servicer or any of their Affiliates to comply
with or obtain more favorable treatment under any law or regulation or any accounting rule or
principle, it being a condition to any such amendment that the Rating Agency Condition shall have
been satisfied.

     (c) This Agreement (including Appendix A) may also be amended from time to time by Seller,
Servicer and the Indenture Trustee, with the consent of the Noteholders evidencing not less than a
majority of the Note Balance, voting as a single class, for the purpose of adding any provisions to
or changing in any manner or eliminating any of the provisions of this Agreement or of modifying in
any manner the rights of the Noteholders; provided that no such amendment shall (i) reduce the
interest rate or principal amount of any Note, change delay the Final Scheduled Payment Date of any
Note without the consent of the Holder of such Note, (ii) reduce the percentage of the Note
Balance, the Holders of which are required to consent to any matter without the consent of the
Holders of at least the percentage of the Note Balance which were required to consent to such
matter before giving effect to such amendment; provided, further, that the Indenture Trustee may
not agree to any amendment to this Agreement if such amendment failed to comply with the
requirements of Section 9.2 of the Indenture. It will not be necessary for the consent of
Noteholders to approve the particular form of any proposed amendment or consent, but it will be
sufficient if such consent approves the substance thereof. The manner of obtaining such consents
(and any other consents of Noteholders provided for in this Agreement) and of evidencing the
authorization of the execution thereof by Noteholders will be subject to such reasonable
requirements as the Indenture Trustee may prescribe, including the establishment of record dates
pursuant to the Note Depository Agreement.

     (d) Prior to the execution of any such amendment, the Servicer shall provide written
notification of the substance of such amendment to each Rating Agency; and promptly after the
execution of any such amendment or consent, the Servicer (i) shall furnish a copy of such amendment
or consent to each Rating Agency and the Indenture Trustee and (ii) if this Agreement is amended in
accordance with clauses (i) or (ii) of Section 9.1(a), shall furnish a copy
of such Opinion of Counsel or Officer’s Certificate, as the case may be, to each of the Rating
Agencies.

     (e) Prior to the execution of any amendment to this Agreement, the Seller, the Owner Trustee
and the Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted by this Agreement
and that all conditions precedent to the execution and delivery of such amendment have been
satisfied. The Owner Trustee and the Indenture Trustee may, but shall not be obligated to, enter
into or execute on behalf of the Issuer any such amendment which adversely affects the Owner
Trustee’s or the Indenture Trustee’s, as applicable, own rights, duties or immunities under this
Agreement.

     SECTION 9.2 Protection of Title.

     (a) The Seller shall authorize and file such financing statements and cause to be authorized
and filed such continuation and other statements, all in such manner and in such places as may be
required by law fully to preserve, maintain and protect the interest of the Issuer and the
Indenture Trustee under this Agreement in the Receivables. The Seller shall deliver (or

26

 

cause to be delivered) to the Issuer file-stamped copies of, or filing receipts for, any
document filed as provided above.

     (b) None of the Issuer, the Seller nor the Servicer shall change its name, identity,
organizational structure or jurisdiction of organization in any manner that would make any
financing statement or continuation statement filed by the Seller in accordance with paragraph (a)
above “seriously misleading” within the meaning of Sections 9-506, 9-507 or 9-508 of the UCC,
unless it shall have given the Issuer and the Indenture Trustee at least five days’ prior written
notice thereof and, to the extent necessary, has promptly filed amendments to previously filed
financing statements or continuation statements described in paragraph (a) above.

     (c) The Seller shall give the Issuer and the Indenture Trustee at least five days’ prior
written notice of any change of location of the Seller for purposes of Section 9-307 of the UCC and
shall have taken all action prior to making such change (or shall have made arrangements to take
such action substantially simultaneously with such change, if it is not possible to take such
action in advance) reasonably necessary or advisable to amend all previously filed financing
statements or continuation statements described in paragraph (a) above.

     (d) The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) in accordance
with its Customary Servicing Practices accounts and records as to each Receivable accurately and in
sufficient detail to permit (i) the reader thereof to know at any time the status of such
Receivable, including payments and recoveries made and payments owing (and the nature of each) and
(ii) reconciliation between payments or recoveries on (or with respect to) each Receivable and the
amounts from time to time deposited in the Collection Account in respect of such Receivable.

     (e) The Servicer shall maintain (or shall cause its Sub-Servicer to maintain) its computer
systems so that, from time to time after the conveyance under this Agreement of the Receivables,
the master computer records (including any backup archives) that refer to a Receivable shall
indicate clearly the interest of the Issuer in such Receivable and that such Receivable is owned by
the Issuer and has been pledged to the Indenture Trustee pursuant to the Indenture. Indication of
the Issuer’s interest in a Receivable shall not be deleted from or modified on such computer
systems until, and only until, the related Receivable shall have been paid in full, repurchased by
the Seller pursuant to Section 2.3 hereof, repurchased by VCI pursuant to Section
3.3 of the Purchase Agreement or purchased by the Servicer in accordance with Section
3.6 hereof.

     (f) If at any time the Servicer shall propose to sell, grant a security interest in or
otherwise transfer any interest in motor vehicle receivables to any prospective purchaser, lender
or other transferee, the Servicer shall give to such prospective purchaser, lender or other
transferee computer tapes, records or printouts (including any restored from backup archives) that,
if they shall refer in any manner whatsoever to any Receivable, shall indicate clearly that such
Receivable has been sold and is owned by the Issuer and has been pledged to the Indenture Trustee.

     (g) The Servicer, upon receipt of reasonable prior notice, shall permit the Indenture Trustee,
the Owner Trustee and their respective agents at any time during normal business hours

27

 

to inspect, audit and, to the extent permitted by applicable law, make copies of and abstracts
from Servicer’s (or any Sub-Servicer’s) records regarding any Receivable.

     (h) Upon request, the Servicer shall furnish to the Issuer or to the Indenture Trustee, within
thirty Business Days, a list of all Receivables (by contract number and name of Obligor) then owned
by the Issuer, together with a reconciliation of such list to each of the Servicer’s Certificates
furnished before such request indicating removal of Receivables from the Issuer.

     SECTION 9.3 Other Liens or Interests. Except for the conveyances and grants of
security interests pursuant to this Agreement and the other Transaction Documents, the Seller shall
not sell, pledge, assign or transfer the Receivables or other property transferred to the Issuer to
any other Person, or grant, create, incur, assume or suffer to exist any Lien (other than Permitted
Liens) on any interest therein, and the Seller shall defend the right, title and interest of the
Issuer in, to and under such Receivables and other property transferred to the Issuer against all
claims of third parties claiming through or under the Seller.

     SECTION 9.4 Transfers Intended as Sale; Security Interest.

     (a) Each of the parties hereto expressly intends and agrees that the transfers contemplated
and effected under this Agreement are complete and absolute sales and transfers rather than pledges
or assignments of only a security interest and shall be given effect as such for all purposes. It
is further the intention of the parties hereto that the Receivables and related Transferred Assets
shall not be part of the Seller’s estate in the event of a bankruptcy or insolvency of the Seller.
The sales and transfers by the Seller of Receivables and related Transferred Assets hereunder are
and shall be without recourse to, or representation or warranty (express or implied) by, the
Seller, except as otherwise specifically provided herein. The limited rights of recourse specified
herein against the Seller are intended to provide a remedy for breach of representations and
warranties relating to the condition of the property sold, rather than to the collectibility of the
Receivables.

     (b) Notwithstanding the foregoing, in the event that the Receivables and other Transferred
Assets are held to be property of the Seller, or if for any reason this Agreement is held or deemed
to create indebtedness or a security interest in the Receivables and other Transferred Assets, then
it is intended that:

	 	(i)	 	This Agreement shall be deemed to be a security agreement
within the meaning of Articles 8 and 9 of the New York UCC and the UCC of any
other applicable jurisdiction;
	 
	 	(ii)	 	The conveyance provided for in Section 2.1 shall be
deemed to be a grant by the Seller, and the Seller hereby grants, to the Issuer
of a security interest in all of its right (including the power to convey title
thereto), title and interest, whether now owned or hereafter acquired, in and
to the Receivables and other Transferred Assets, to secure such indebtedness
and the performance of the obligations of the Seller hereunder;
	 
	 	(iii)	 	The possession by the Issuer, or the Servicer as the Issuer’s
agent, of the Receivables Files and any other property as constitute
instruments, money,

28

 

	 	 	 	negotiable documents or chattel paper shall be deemed to be “possession by
the secured party” or possession by the purchaser or a person designated by
such purchaser, for purposes of perfecting the security interest pursuant to
the New York UCC and the UCC of any other applicable jurisdiction; and

	 	(iv)	 	Notifications to persons holding such property, and
acknowledgments, receipts or confirmations from persons holding such property,
shall be deemed to be notifications to, or acknowledgments, receipts or
confirmations from, bailees or agents (as applicable) of the Issuer for the
purpose of perfecting such security interest under applicable law.

     SECTION 9.5 Notices, Etc. All demands, notices and communications hereunder shall be
in writing and shall be delivered or mailed by registered or certified first-class United States
mail, postage prepaid, hand delivery, prepaid courier service, or by facsimile, and addressed in
each case as set forth on Schedule II hereto or at such other address as shall be designated in a
written notice to the other parties hereto. Any notice required or permitted to be mailed to a
Noteholder shall be given by first class mail, postage prepaid, at the address of such Noteholder
as shown in the Note Register. Delivery shall occur only upon receipt or reported tender of such
communication by an officer of the recipient entitled to receive such notices located at the
address of such recipient for notices hereunder; provided, however, that any notice to a Noteholder
mailed within the time prescribed in this Agreement shall be conclusively presumed to have been
duly given, whether or not the Noteholder shall receive such notice.

     SECTION 9.6 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE INTERNAL, SUBSTANTIVE LAWS OF THE STATE OF NEW YORK WITHOUT REFERENCE TO THE
RULES THEREOF RELATING TO CONFLICTS OF LAW, OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK
GENERAL OBLIGATIONS LAW, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS.

     SECTION 9.7 Headings. The section headings hereof have been inserted for convenience
of reference only and shall not be construed to affect the meaning, construction or effect of this
Agreement.

     SECTION 9.8 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all of such
counterparts shall together constitute but one and the same instrument.

     SECTION 9.9 Waivers. No failure or delay on the part of the Servicer, the Seller, the
Issuer or the Indenture Trustee in exercising any power or right hereunder (to the extent such
Person has any power or right hereunder) shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power or right preclude any other or further exercise thereof or the
exercise of any other power or right. No notice to or demand on any party hereto in any case shall
entitle it to any notice or demand in similar or other circumstances. No waiver or approval by any
party hereto under this Agreement shall, except as may otherwise be stated in such waiver

29

 

or approval, be applicable to subsequent transactions. No waiver or approval under this
Agreement shall require any similar or dissimilar waiver or approval thereafter to be granted
hereunder.

     SECTION 9.10 Entire Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
thereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter thereof, superseding all prior oral or written understandings. There are no
unwritten agreements among the parties.

     SECTION 9.11 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.

     SECTION 9.12 Binding Effect. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and permitted assigns. This
Agreement shall create and constitute the continuing obligations of the parties hereto in
accordance with its terms, and shall remain in full force and effect until such time as the parties
hereto shall agree.

     SECTION 9.13 Acknowledgment and Agreement. By execution below, the Seller expressly
acknowledges and consents to the pledge, assignment and Grant of a security interest in the
Receivables and the other Transferred Assets by the Issuer to the Indenture Trustee pursuant to the
Indenture for the benefit of the Noteholders. In addition, the Seller hereby acknowledges and
agrees that for so long as the Notes are outstanding, the Indenture Trustee will have the right to
exercise all powers, privileges and claims of the Issuer under this Agreement.

     SECTION 9.14 No Waiver; Cumulative Remedies. The remedies herein provided are
cumulative and not exclusive of any remedies provided by law.

     SECTION 9.15 Nonpetition Covenant. Each party hereto agrees that, prior to the date
which is one year and one day after payment in full of all obligations of each Bankruptcy Remote
Party in respect of all securities issued by any Bankruptcy Remote Party (i) such party shall not
authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or
other proceeding seeking liquidation, reorganization or other relief with respect to such
Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect in any jurisdiction or seeking the appointment of an administrator, a trustee,
receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote
Party or any substantial part of its property or to consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or other proceeding
commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of,
its creditors generally, any party hereto or any other creditor of such Bankruptcy Remote Party,
and (ii) none of the parties hereto shall commence or join with any other Person in commencing any
proceeding against such Bankruptcy Remote Party under any

30

 

bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in
effect in any jurisdiction. This Section shall survive the termination of this Agreement.

     SECTION 9.16 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:

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

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

     (c) agrees that service of process in any such action or proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 9.5;

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

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

     SECTION 9.17 Limitation of Liability.

     (a) Notwithstanding anything contained herein to the contrary, this Agreement has been
executed and delivered by [          ], not in its individual capacity but solely as Owner Trustee,
and in no event shall it have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer hereunder or under the Notes or any of the other
Transaction Documents or in any of the certificates, notices or agreements delivered pursuant
thereto, as to all of which recourse shall be had solely to the assets of the Issuer. Under no
circumstances shall the Owner Trustee be personally liable for the payment of any indebtedness or
expense of the Issuer or be liable for the breach or failure of any obligations, representation,
warranty or covenant made or undertaken by the Issuer under the Transaction Documents. For the
purposes of this Agreement, in the performance of its duties or obligations hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and provisions of Articles
VI, VII and VIII of the Trust Agreement.

     (b) Notwithstanding anything contained herein to the contrary, this Agreement has been
executed and delivered by [   ], not in its individual capacity but solely as Indenture Trustee, and
in no event shall it have any liability for the representations, warranties, covenants, agreements
or other obligations of the Issuer under the Notes or any of the other Transaction

31

 

Documents or in any of the certificates, notices or agreements delivered pursuant thereto, as
to all of which recourse shall be had solely to the assets of the Issuer. Under no circumstances
shall the Indenture Trustee be personally liable for the payment of any indebtedness or expense of
the Issuer or be liable for the breach or failure of any obligations, representation, warranty or
covenant made or undertaken by the Issuer under the Transaction Documents. For the purposes of
this Agreement, in the performance of its duties or obligations hereunder, the Indenture Trustee
shall be subject to, and entitled to the benefits of, the terms and provisions of Article VI of the
Indenture.

     SECTION 9.18 Third-Party Beneficiaries. This Agreement shall inure to the benefit of
and be binding upon the parties hereto, the Noteholders and the Certificateholder and their
respective successors and permitted assigns and the Owner Trustee shall be an express third party
beneficiary hereof and may enforce the provisions hereof as if it were a party hereto. Except as
otherwise provided in this Section, no other Person will have any right hereunder.

     SECTION 9.19 Information Requests. The parties hereto shall provide any information
reasonably requested by the Servicer, the Issuer, the Seller or any of their Affiliates, in order
to comply with or obtain more favorable treatment under any current or future law, rule,
regulation, accounting rule or principle.

     SECTION 9.20 Regulation AB. The Servicer shall cooperate fully with the Seller and
the Issuer to deliver to the Seller and the Issuer (including any of its assignees or designees)
any and all statements, reports, certifications, records and any other information necessary in the
good faith determination of the Seller or the Issuer to permit the Seller to comply with the
provisions of Regulation AB, together with such disclosures relating to the Servicer and the
Receivables, or the servicing of the Receivables, reasonably believed by the Seller to be necessary
in order to effect such compliance.

     SECTION 9.21 Information to Be Provided by the Indenture Trustee.

     (a) For so long as the Seller is filing reports under the Exchange Act with respect to the
Issuer, the Indenture Trustee shall (i) on or before the fifth Business Day of each month, notify
the Seller, in writing, of any Form 10-D Disclosure Item with respect to the Indenture Trustee,
together with a description of any such Form 10-D Disclosure Item in form and substance reasonably
satisfactory to the Seller; provided, however, that the Indenture Trustee shall not be required to
provide such information in the event that there has been no change to the information previously
provided by the Indenture Trustee to Seller, and (ii) as promptly as practicable following notice
to or discovery by a Responsible Officer of the Indenture Trustee of any changes to such
information, provide to the Seller, in writing, such updated information.

     (b) As soon as available but no later than March 15 of each calendar year for so long as the
Issuer is filing reports under the Exchange Act, commencing in [   ], the Indenture
Trustee shall:

     (i) deliver to the Seller a report regarding the Indenture Trustee’s assessment
of compliance with the Servicing Criteria during the immediately preceding calendar
year, as required under paragraph (b) of Rule 13a-18, Rule 15d-

32

 

18 of the Exchange Act and Item 1122 of Regulation AB. Such report shall be
signed by an authorized officer of the Indenture Trustee, and shall address each of
the Servicing Criteria specified in Exhibit C or such other criteria as
mutually agreed upon by the Seller and the Indenture Trustee;

     (ii) cause a firm of registered public accountants that is qualified and
independent with the meaning of Rule 2-01 of Regulation S-X under the Securities Act
to deliver a report for inclusion in the Issuer’s filing of Exchange Act Form 10-K
that attests to, and reports on, the assessment of compliance made by the Indenture
Trustee and delivered to the Seller pursuant to the preceding paragraph. Such
attestation shall be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation
S-X under the Securities Act and the Exchange Act;

     (iii) deliver to the Seller and any other Person that will be responsible for
signing the certification (a “Sarbanes Certification”) required by Rules 13a-14(d)
and 15d-14(d) under the Exchange Act (pursuant to Section 302 of the Sarbanes-Oxley
Act) on behalf of the Issuer or the Seller substantially in the form attached hereto
as Exhibit D or such form as mutually agreed upon by the Seller and the
Indenture Trustee; and

     (iv) notify the Seller in writing of any affiliations or relationships (as
described in Item 1119 of Regulation AB) between the Indenture Trustee and any Item
1119 Party, provided, that no such notification need be made if the affiliations or
relationships are unchanged from those provided in the notification in the prior
calendar year.

The Indenture Trustee acknowledges that the parties identified in clause (iii) above may rely on
the certification provided by the Indenture Trustee pursuant to such clause in signing a Sarbanes
Certification and filing such with the Commission.

     SECTION 9.22 Form 8-K Filings. So long as the Seller is filing Exchange Act Reports
with respect to the Issuer, the Indenture Trustee shall promptly notify the Seller, but in no event
later than one (1) Business Day after its occurrence, of any Reportable Event of which a
Responsible Officer of the Indenture Trustee has actual knowledge (other than a Reportable Event
described in clause (a) or (b) of the definition thereof as to which the Seller or
the Servicer has actual knowledge). The Indenture Trustee shall be deemed to have actual knowledge
of any such event to the extent that it relates to the Indenture Trustee or any action or failure
to act by the Indenture Trustee.

     SECTION 9.23 Indemnification. [Indenture Trustee name] shall indemnify the Seller,
each Affiliate of the Seller and each Person who controls any of such parties (within the meaning
of Section 15 of the Securities Act and Section 20 of the Exchange Act) and the respective present
and former directors, officers, employees and agents of each of the foregoing, and shall hold each
of them harmless from and against any losses, damages, penalties, fines, forfeitures, legal fees
and expenses and related costs, judgments, and any other costs, fees and expenses that any of them
may sustain arising out of or based upon:

33

 

     (a) (A) any untrue statement of a material fact contained or alleged to be contained in the
Servicing Criteria assessment and any other information required to be provided by [Indenture
Trustee name] to the Seller or its affiliates under Sections 9.21 (excluding clause
(b)(ii) of Section 9.21) or 9.22 (such information, the “Provided
Information”), or (B) the omission or alleged omission to state in the Provided Information a
material fact required to be stated in the Provided Information, or necessary in order to make the
statements therein, in the light of the circumstances under which they were made, not misleading;
provided, by way of clarification, that clause (B) of this paragraph shall be construed
solely by reference to the related information and not to any other information communicated in
connection with a sale or purchase of securities, without regard to whether the Provided
Information or any portion thereof is presented together with or separately from such other
information; or

     (b) any failure by [Indenture Trustee name] to deliver any Servicing Criteria assessment,
information, report, certification, accountants’ letter or other material when and as required
under Sections 9.21 and 9.22; provided, however, for the avoidance of doubt, this
provision shall exclude the accountants’ report described in clause (b)(ii) of Section
11.23.

     (c) In the case of any failure of performance described in clause (a)(ii) of this
Section, [Indenture Trustee name] shall promptly reimburse the Seller for all costs reasonably
incurred in order to obtain the information, report, certification, accountants’ letter or other
material not delivered as required by [Indenture Trustee name].

     Notwithstanding anything to the contrary contained herein, in no event shall [Indenture
Trustee name] be liable for special, indirect or consequential damages of any kind whatsoever,
including but not limited to lost profits, even if [Indenture Trustee name] has been advised of
the likelihood of such loss or damage and regardless of the form of action.

34

 

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

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LEASE/LOAN
 UNDERWRITTEN FUNDING, LLC, as
Seller

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	VW CREDIT, INC., as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LOAN ENHANCED TRUST 20[   ]-[   ], as Issuer

 	 
	 	By:  	 	 
	 	 	 	 
	 	By:  	
 	 
	 	 	 	 
	 	 	 	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	[ ], not in its individual capacity but solely as Indenture
Trustee

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 

S-3

 

SCHEDULE I

REPRESENTATIONS AND WARRANTIES WITH RESPECT TO THE RECEIVABLES

	(a)	 	Characteristics of Receivables. Each Receivable:

     (i) has been fully and properly executed by the Obligor thereto;

     (ii) has either (A) been originated by a Dealer in the ordinary course of such
Dealer’s business to finance the retail sale by a Dealer of the related Financed
Vehicle and has been purchased by the applicable Originator in the ordinary course
of its respective business or (B) has been originated or acquired directly by the
applicable Originator in accordance with its customary practices;

     (iii) as of the Closing Date is secured by a first priority validly perfected
security interest in the Financed Vehicle in favor of the applicable Originator, as
secured party, or all necessary actions have been commenced that would result in a
first priority security interest in the Financed Vehicle in favor of the applicable
Originator, as secured party, which security interest, in either case, is assignable
and has been so assigned (x) by VCI to the Seller and (z) by the Seller to the
Issuer;

     (iv) contains customary and enforceable provisions such that the rights and
remedies of the holder thereof are adequate for realization against the collateral
of the benefits of the security;

     (v) provided, at origination, for level monthly payments which fully amortize
the initial Outstanding Principal Balance over the original term; provided that the
amount of the first or last payment may be different but in no event more than three
times the level monthly payment;

     (vi) provides for interest at the Contract Rate specified in the Schedule of
Receivables; and

     (vii) was originated in the United States.

	(b)	 	Individual Characteristics. Each Receivable has the following individual
characteristics as of the Cut-Off Date:

     (i) each Receivable is secured by a new or used automobile or light-duty truck;

     (ii) each Receivable has a Contract Rate of no less than [     ]% and not more
than [     ]%;

Schedule I to the

Sale and Servicing Agreement

I-1

 

     (iii) each Receivable had an original term to maturity of not more than [     ]
months and not less than [     ] months and each Receivable has a remaining term to
maturity, as of the Cut-Off Date, of [     ] months or more;

     (iv) each Receivable has an Outstanding Principal Balance as of the Cut-Off
Date of greater than or equal to $[     ];

     (v) no Receivable has a scheduled maturity date later than [     ];

     (vi) no Receivable was more than 30 days past due as of the Cut-Off Date;

     (vii) as of the Cut-off Date, no Receivable was noted in the records of VCI or
the Servicer as being the subject of any pending bankruptcy or insolvency
proceeding;

     (viii) no Receivable is subject to a force-placed Insurance Policy on the
related Financed Vehicle;

     (ix) each Receivable is a Simple Interest Receivable;

     (x) each of the Receivables were selected using selection procedures that were
not known or intended by VCI or the Servicer to be adverse to the Issuer; and

     (xi) the Dealer of the Financed Vehicle has no participation in, or other right
to receive, any proceeds of such Receivable.

	(c)	 	Schedule of Receivables. The information with respect to a Receivable transferred on
the Closing Date set forth in the Schedule of Receivables was true and correct in all material
respects as of the Cut-Off Date.
	 
	(d)	 	Compliance with Law. The Receivable complied at the time it was originated or made,
in all material respects with all requirements of applicable federal, state and local laws,
and regulations thereunder, including, to the extent applicable, usury laws, the Federal Truth
in Lending Act, the Equal Credit Opportunity Act, the Fair Credit Reporting Act, the Federal
Trade Commission Act, the Fair Debt Collection Practices Act, the Fair Credit Billing Act, the
Magnuson-Moss Warranty Act, Federal Reserve Board Regulations B and Z, the Servicemembers
Civil Relief Act, state adaptations of the National Consumer Act and of the Uniform Consumer
Credit Code and any other consumer credit, equal opportunity and disclosure laws applicable to
that Receivable.
	 
	(e)	 	Binding Obligation. The Receivable constitutes the legal, valid and binding payment
obligation in writing of the Obligor, enforceable in all respects by the holder thereof in
accordance with its terms, subject, as to enforcement, to applicable bankruptcy, insolvency,
reorganization, liquidation or other similar laws and equitable principles relating to or
affecting the enforcement of creditors’ rights generally.

I-2

 

	(f)	 	Receivable in Force. The Receivable has not been satisfied, subordinated or
rescinded nor has the related Financed Vehicle been released from the lien granted by the
Receivable in whole or in part.
	 
	(g)	 	No Waiver. As of the Cut-Off Date, no provision of a Receivable has been waived.
	 
	(h)	 	No Default. Except for payment delinquencies continuing for a period of not more
than 30 days as of the Cut-Off Date, the records of the Servicer did not disclose that any
default, breach, violation or event permitting acceleration under the terms of the Receivable
existed as of the Cut-Off Date or that any continuing condition that with notice or lapse of
time, or both, would constitute a default, breach, violation or event permitting acceleration
under the terms of the Receivable had arisen as of the Cut-Off Date.
	 
	(i)	 	Insurance. The Receivable requires the Obligor thereunder to insure the Financed
Vehicle under a physical damage insurance policy.
	 
	(j)	 	No Government Obligor. The Obligor on the Receivable is not the United States of
America or any state thereof or any local government, or any agency, department, political
subdivision or instrumentality of the United States of America or any state thereof or any
local government.
	 
	(k)	 	Assignment. No Receivable has been originated in, or is subject to the laws of, any
jurisdiction under which the sale, transfer, assignment, conveyance or pledge of such
Receivable would be unlawful, void, or voidable. The Seller has not entered into any
agreement with any Obligor that prohibits, restricts or conditions the assignment of the
related Receivable.
	 
	(l)	 	Good Title. It is the intention of the Seller that the sale, contribution, transfer,
assignment and conveyance herein contemplated constitute an absolute sale, contribution,
transfer, assignment and conveyance of the Receivables and that the Receivables not be part of
the Seller’s estate in the event of the filing of a bankruptcy petition by or against the
Seller under any bankruptcy law. No Receivable has been sold, transferred, assigned, conveyed
or pledged to any Person other than pursuant to the Transaction Documents. As of the Closing
Date and immediately prior to the sale and transfer herein contemplated, the Seller had good
and marketable title to each Receivable free and clear of all Liens, and, immediately upon the
sale and transfer thereof, the Issuer will have good and marketable title to each Receivable,
free and clear of all Liens (other than Permitted Liens).
	 
	(m)	 	Filings. All filings (including, without limitation, UCC filings) necessary in any
jurisdiction to give the Issuer a first priority, validly perfected ownership interest in the
Receivables (other than the Related Security with respect thereto), and to give the Indenture
Trustee a first priority perfected security interest therein, will be made within ten days of
the Closing Date.
	 
	(n)	 	Priority. The Receivable is not pledged, assigned, sold, subject to a security
interest, or otherwise conveyed other than pursuant to the Transaction Documents. The Seller
has

I-3

 

	 	 	not authorized the filing of and is not aware of any financing statements against VCI or the
Seller that include a description of collateral covering the Receivables other than any
financing statement relating to security interests granted under the Transaction Documents
or that have been terminated. The Sale and Servicing Agreement creates a valid and
continuing security interest in the Receivable (other than the Related Security with respect
thereto) in favor of the Issuer which security interest is prior to all other Liens (other
than Permitted Liens) and is enforceable as such against all other creditors of and
purchasers and assignees from the Seller.

	(o)	 	Characterization of Receivables. Each Receivable constitutes either “tangible
chattel paper”, an “account”, a “promissory note” or a “payment intangible”, each as defined
in the UCC.
	 
	(p)	 	One Original. There is only one original executed copy of each Receivable in
existence. The Servicer (or its agent) has possession of such original. If such original has
been marked, then such original does not have any marks or notations indicating that it has
been pledged, assigned or otherwise conveyed to any Person other than to a party to the
Transaction Documents.
	 
	(q)	 	No Defenses. The Seller has no knowledge either of any facts which would give rise
to any right of rescission, set-off, counterclaim or defense, or of the same being asserted or
threatened, with respect to any Receivable.
	 
	(r)	 	No Repossession. As of the Cut-Off Date, no Financed Vehicle shall have been
repossessed.

I-4

 

SCHEDULE II

NOTICE ADDRESSES

If to the Issuer:

with copies to the Administrator, VW Credit, Inc., the Indenture Trustee

If to the Owner Trustee:

with a copy to:

If to the Indenture Trustee:

If to Purchaser:

2200 Ferdinand Porsche Drive

Herndon, VA 20171

(telecopier no. (703) 364-7077)

Attention: Treasurer

If to the Servicer:

2200 Ferdinand Porsche Drive

Herndon, VA 20171

(telecopier no. (703) 364-7077)

Attention: Treasurer

with a copy to VW Credit, Inc.

If to VCI:

2200 Ferdinand Porsche Drive

Herndon, VA 20171

(telecopier no. (703) 364-7077)

Attention: Treasurer

If to VW Credit, Inc.:

2200 Ferdinand Porsche Drive

Herndon, VA 20171

(telecopier no. (703) 364-7077)

Attention: General Counsel

Schedule II to the

Sale and Servicing Agreement

II-1

 

If to Moody’s:

Moody’s Investors Service, Inc.

99 Church Street

New York, New York 10007

(telecopier no. (212) 298-7139)

Attention: ABS Monitoring Group

If to Standard & Poor’s:

Standard & Poor’s Ratings Services

55 Water Street

New York, New York 10041

(telecopier no. (212) 438-2664)

Attention: Asset Backed Surveillance Group

II-2

 

EXHIBIT A

FORM OF ASSIGNMENT PURSUANT TO

SALE AND SERVICING AGREEMENT

     For value received, in accordance with the Sale and Servicing Agreement (the
“Agreement”), dated as of [     ], between Volkswagen Auto Loan Enhanced Trust 20[     ]-[     ], a
Delaware statutory trust (the “Issuer”), Volkswagen Auto Lease/Loan Underwritten Funding,
LLC, a Delaware limited liability company (the “Seller”), VW Credit, Inc., a Delaware
corporation (“VCI”), and [     ], a national banking association (the “Indenture
Trustee”), on the terms and subject to the conditions set forth in the Agreement, the Seller
does hereby transfer, assign, set over, sell and otherwise convey to the Issuer on [     ], all of its
right, title and interest in, to and under the Receivables set forth on the schedule of Receivables
delivered by the Seller to the Issuer on the date hereof (such schedule, the “Schedule of
Receivables”), and the Collections after the Cut-Off Date, the Receivables Files and the
Related Security relating thereto, together with all of Seller’s rights under the Purchase
Agreement and all proceeds of the foregoing; which sale shall be effective as of the Cut-Off Date.

     The foregoing sale does not constitute and is not intended to result in any assumption by the
Issuer of any obligation of the undersigned or the applicable Originator to the Obligors, the
Dealers or any other Person in connection with the Receivables, or the other assets and properties
conveyed hereunder or any agreement, document or instrument related thereto.

     This assignment is made pursuant to and upon the representations, warranties and agreements on
the part of the undersigned contained in the Agreement and is governed by the Agreement.

     Capitalized terms used herein and not otherwise defined shall have the meaning assigned to
them in the Agreement.

     IN WITNESS HEREOF, the undersigned has caused this assignment to be duly executed as of [     ] .

	 	 	 	 	 
	 	VOLKSWAGEN AUTO LEASE/LOAN 

UNDERWRITTEN FUNDING, LLC

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Exhibit A to the

Sale and Servicing Agreement

A-1

 

EXHIBIT B

PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS

In addition to the representations, warranties and covenants contained in the Agreement, the Seller
hereby represents, warrants and covenants to the Issuer and the Indenture Trustee as follows on the
Closing Date:

General

1. This Agreement creates a valid and continuing security interest (as defined in the applicable
UCC) in the Receivables and the other Transferred Assets in favor of the Issuer, which security
interest is prior to all other Liens, and is enforceable as such as against creditors of and
purchasers from the Seller.

2. The Receivables constitute “tangible chattel paper,” “accounts,” “instruments” or “general
intangibles,” within the meaning of the UCC.

3. Each Receivable is secured by a first priority validly perfected security interest in the
related Financed Vehicle in favor of the applicable Originator, as secured party, or all necessary
actions with respect to such Receivable have been taken or will be taken to perfect a first
priority security interest in the related Financed Vehicle in favor of the applicable Originator,
as secured party.

Creation

4. Immediately prior to the sale, transfer, assignment and conveyance of a Receivable by the Seller
to the Issuer, the Seller owned and had good and marketable title to such Receivable free and clear
of any Lien and immediately after the sale, transfer, assignment and conveyance of such Receivable
to the Issuer, the Issuer will have good and marketable title to such Receivable free and clear of
any Lien.

5. The related Originator has received all consents and approvals to the sale of the Receivables
hereunder to the Issuer required by the terms of the Receivables that constitute instruments.

Perfection

6. The Seller has caused or will have caused, within ten days after the effective date of this
Agreement, the filing of all appropriate financing statements in the proper filing office in the
appropriate jurisdictions under applicable law in order to perfect the sale of the Receivables from
the Seller to Issuer, and the security interest in the Receivables granted to the Issuer hereunder;
and the Servicer, in its capacity as custodian, has in its possession the original copies of such
instruments or tangible chattel paper that constitute or evidence the Receivables, and all
financing statements referred to in this paragraph contain a statement that: “A purchase of or
security interest in any collateral described in this financing statement will violate the rights
of the Secured Party/Purchaser”.

Exhibit B to the

Sale and Servicing Agreement

B-1

 

7. With respect to Receivables that constitute instruments or tangible chattel paper, either:

(i) All original executed copies of each such instrument or tangible chattel paper have been
delivered to the Indenture Trustee; or

(ii) Such instruments or tangible chattel paper are in the possession of the Servicer and the
Indenture Trustee has received a written acknowledgment from the Servicer that the Servicer, in its
capacity as custodian, is holding such instruments or tangible chattel paper solely on behalf and
for the benefit of the Indenture Trustee; or

(iii) The Servicer received possession of such instruments or tangible chattel paper after the
Indenture Trustee received a written acknowledgment from the Servicer that the Servicer is acting
solely as agent of the Indenture Trustee.

Priority

8. Neither the Seller nor VCI has authorized the filing of, or is aware of, any financing
statements against either the Seller or VCI that include a description of collateral covering the
Receivables other than any financing statement (i) relating to the conveyance of the Receivables by
VCI to the Seller under the Purchase Agreement, (ii) relating to the security interest granted to
Issuer hereunder or (iii) that has been terminated.

9. Neither the Seller nor VCI is aware of any material judgment, ERISA or tax lien filings against
either the Seller or VCI.

10. None of the instruments or tangible chattel paper that constitutes or evidences the Receivables
has any marks or notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Seller, the Issuer or the Indenture Trustee.

Survival of Perfection Representations

11. Notwithstanding any other provision of the Sale and Servicing Agreement or any other
Transaction Document, the perfection representations, warranties and covenants contained in this
Exhibit B shall be continuing, and remain in full force and effect until such time as all
obligations under the Transaction Documents and the Notes have been finally and fully paid and
performed.

No Waiver

12. The parties to the Sale and Servicing Agreement shall provide the Rating Agencies with prompt
written notice of any breach of the perfection representations, warranties and covenants contained
in this Exhibit B, and shall not, without satisfying the Rating Agency Condition, waive a breach of
any of such perfection representations, warranties or covenants.

Servicer to Maintain Perfection and Priority

13. The Servicer covenants that, in order to evidence the interests of the Seller and Issuer
under the Sale and Servicing Agreement and the Indenture Trustee under the Indenture,

B-2

 

 Servicer shall take such action, or execute and deliver such instruments as may be necessary or
advisable (including, without limitation, such actions as are requested by the Indenture Trustee)
to maintain and perfect, as a first priority perfected security interest, the Indenture Trustee’s
security interest in the Receivables. The Servicer shall, from time to time and within the time
limits established by law, prepare and file, all financing statements, amendments, continuations,
initial financing statements in lieu of a continuation statement, terminations, partial
terminations, releases or partial releases, or any other filings necessary or advisable to
continue, maintain and perfect the Indenture Trustee’s security interest in the Receivables as a
first-priority perfected security interest.

B-3

 

EXHIBIT C

SERVICING CRITERIA TO BE ADDRESSED IN

INDENTURE TRUSTEE’S ASSESSMENT OF COMPLIANCE

The assessment of compliance to be delivered by the Indenture Trustee shall address, at a minimum,
the criteria identified as below as “Applicable Servicing Criteria”:

[To be inserted]

Exhibit C to the

Sale and Servicing Agreement

C-1

 

EXHIBIT D

FORM OF INDENTURE TRUSTEE’S ANNUAL CERTIFICATION

Re:     VOLKSWAGEN AUTO LOAN ENHANCED TRUST 20[     ]-[     ]

          [     ], not in its individual capacity but solely as indenture trustee (the “Indenture
Trustee”), certifies to Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the
“Seller”), and its officers, with the knowledge and intent that they will rely upon this
certification, that:

     (1) It has reviewed the report on assessment of the Indenture Trustee’s compliance
provided in accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of
1934, as amended, and Item 1122 of Regulation AB (the “Servicing Assessment”) that was
delivered by the Indenture Trustee to the Seller pursuant to the Sale and Servicing
Agreement (the “Agreement”), dated as of [     ], by and between VW Credit, Inc., the Seller,
the Indenture Trustee and Volkswagen Auto Loan Enhanced Trust 20[     ]-[     ] (collectively, the
“Indenture Trustee Information”);

     (2) To the best of its knowledge, the Servicing Assessment, taken as a whole, does not
contain any untrue statement of a material fact or omit to state a material fact necessary
to make the statements made, in the light of the circumstances under which such statements
were made, not misleading with respect to the period of time covered by the Servicing
Assessment; and

     (3) To the best of its knowledge, all of the Provided Information (as defined in
Section 9.23(a) of the Agreement) required to be provided by the Indenture Trustee
under the Agreement has been provided to the Seller.

[     ], not in its individual capacity but solely as

Indenture Trustee

Date: 
         
         
         

           

Exhibit D to the

Sale and Servicing Agreement

D-1

 

APPENDIX A

DEFINITIONS

     The following terms have the meanings set forth, or referred to, below:

     “Accrued Note Interest” means, with respect to any Payment Date, the sum of the Noteholders’
Monthly Accrued Interest for such Payment Date and the Noteholders’ Interest Carryover Shortfall
for such Payment Date.

     “Act” has the meaning set forth in Section 11.3(a) of the Indenture.

     “Adjusted Pool Balance” means (a) as of the Closing Date, an amount equal to (x) the Net Pool
Balance as of the Cut-Off Date minus (y) the Yield Supplement Overcollateralization Amount for the
Closing Date and (b) for any Payment Date an amount equal to (x) the Net Pool Balance at the end of
the Collection Period preceding that Payment Date minus (y) the Yield Supplement
Overcollateralization Amount for that Payment Date.

     “Administration Agreement” means the Administration Agreement, dated as of the Closing Date,
among the Administrator, the Issuer and the Indenture Trustee, as the same may be amended and
supplemented from time to time.

     “Administrator” means VCI, or any successor Administrator under the Administration Agreement.

     “Advance” has the meaning set forth in Section 4.3(c) of the Sale and Servicing
Agreement.

     “Affiliate” means, for any specified Person, any other Person which, directly or indirectly,
controls, is controlled by or is under common control with such specified Person and “affiliated”
has a meaning correlative to the foregoing. For purposes of this definition, “control” means the
power, directly or indirectly, to cause the direction of the management and policies of a Person.

     “Applicable Tax State” means, as of any date, each State as to which any of the following is
then applicable: (a) a State in which the Owner Trustee maintains its Corporate Trust Office, (b) a
State in which the Owner Trustee maintains its principal executive offices, and (c) the State of
Michigan or the State of Illinois.

     “Authenticating Agent” means any Person authorized by the Indenture Trustee to act on behalf
of the Indenture Trustee to authenticate and deliver the Notes.

     “Authorized Newspaper” means a newspaper of general circulation in The City of New York,
printed in the English language and customarily published on each Business Day, whether or not
published on Saturdays, Sundays and holidays.

     “Authorized Officer” means (a) with respect to the Issuer, (i) any officer of the Owner
Trustee who is authorized to act for the Owner Trustee in matters relating to the Issuer and who is
identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture

Appendix A to the Sale and Servicing

Agreement

 

 

Trustee on the Closing Date or (ii) so long as the Administration Agreement is in effect, any
officer of the Administrator who is authorized to act for the Administrator in matters relating to
the Issuer pursuant to the Administration Agreement and who is identified on the list of Authorized
Officers delivered by the Administrator to the Owner Trustee and the Indenture Trustee on the
Closing Date (as such list may be modified or supplemented from time to time thereafter) and (b)
with respect to the Owner Trustee, the Indenture Trustee and the Servicer, any officer of the Owner
Trustee, the Indenture Trustee or the Servicer, as applicable, who is authorized to act for the
Owner Trustee, the Indenture Trustee or the Servicer, as applicable, in matters relating to the
Owner Trustee, the Indenture Trustee or the Servicer and who is identified on the list of
Authorized Officers delivered by each of the Owner Trustee, the Indenture Trustee and the Servicer
to the Indenture Trustee on the Closing Date (as such list may be modified or supplemented from
time to time thereafter).

     “Available Funds” means, for any Payment Date and the related Collection Period, an amount
equal to the sum of the following amounts: (i) all Collections received by the Servicer during such
Collection Period, (ii) the sum of the Repurchase Prices deposited into the Collection Account with
respect to each Receivable that is to become a Repurchased Receivable on such Payment Date and
(iii) the Reserve Account Excess Amount for such Payment Date.

     “Available Funds Shortfall Amount” means, as of any Payment Date, the amount by which the
amounts required to be paid pursuant to clauses first through fourth of Section 4.4(a) of
the Sale and Servicing Agreement exceeds the sum of (i) Available Funds for such Payment Date and
(ii) Advances made by the Servicer on such Payment Date.

     “Bankruptcy Code” means the United States Bankruptcy Code, 11 U.S.C. 101 et seq., as amended.

     “Bankruptcy Event” means, with respect to any Person, (i) the filing of a decree or order for
relief by a court having jurisdiction in the premises in respect of such Person in an involuntary
case under any applicable federal or state bankruptcy, insolvency or other similar law now or
hereafter in effect, or appointing a receiver, liquidator, assignee, custodian, trustee,
sequestrator or similar official of such Person, or ordering the winding-up or liquidation of such
Person’s affairs, and such decree or order shall remain unstayed and in effect for a period of 90
consecutive days or (ii) the commencement by such Person of a voluntary case under any applicable
federal or state bankruptcy, insolvency or other similar law now or hereafter in effect, or the
consent by such Person to the entry of an order for relief in an involuntary case under any such
law, or the consent by such Person to the appointment or taking possession by a receiver,
liquidator, assignee, custodian, trustee, sequestrator or similar official of such Person, or the
making by such Person of any general assignment for the benefit of creditors, or the failure by
such Person generally to pay its debts as such debts become due, or the taking of action by such
Person in furtherance of any of the foregoing.

     “Bankruptcy Remote Party” means each of the Seller, the Issuer, any other trust created by the
Seller or any limited liability company or corporation wholly-owned by the Seller.

     “Benefit Plan” means (i) any “employee benefit plan” as defined in Section 3(3) of ERISA
whether or not subject to ERISA, (ii) a “plan” described by Section 4975(e)(1) of the

2

 

Code or (iii) any entity deemed to hold the assets of any of the foregoing by reason of an
employee benefit plan’s or other plan’s investment in such entity.

     “Book-Entry Notes” means a beneficial interest in the Notes, ownership and transfers of which
shall be made through book entries by a Clearing Agency as described in Section 2.10 of the
Indenture.

     “Business Day” means any day other than a Saturday, a Sunday or a day on which banking
institutions in the states of Delaware, Michigan, Virginia, New York, or in the state in which the
Corporate Trust Office of the Indenture Trustee is located, are authorized or obligated by law,
executive order or government decree to be closed.

     “Certificate” means a certificate evidencing the beneficial interest of the Certificateholder
in the Issuer, substantially in the form of Exhibit A to the Trust Agreement.

     “Certificate of Title” means, with respect to any Financed Vehicle, the certificate of title
or other documentary evidence of ownership of such Financed Vehicle as issued by the department,
agency or official of the jurisdiction (whether in paper or electronic form) in which such Financed
Vehicle is titled responsible for accepting applications for, and maintaining records regarding,
certificates of title and liens thereon.

     “Certificate of Trust” means the certificate of trust for the Issuer filed by the Owner
Trustee pursuant to the Statutory Trust Statute.

     “Certificateholder” means initially, [          ], and any other Holder of the Certificate.

     “Class” means a group of Notes whose form is identical except for variation in denomination,
principal amount or owner, and references to “each Class” thus mean each of the Class A-1 Notes,
the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes.

     “Class A-1 Final Scheduled Payment Date” means [     ].

     “Class A-1 Interest Rate” means [     ]% per annum (computed on the basis of the actual number of
days elapsed during the applicable Interest Period, but assuming a 360-day year).

     “Class A-1 Note Balance” means, at any time, the Initial Class A-1 Note Balance reduced by all
payments of principal made prior to such time on the Class A-1 Notes.

     “Class A-1 Noteholder” means the Person in whose name a Class A-1 Note is registered on the
Note Register.

     “Class A-1 Notes” means the Class of auto loan asset backed notes designated as Class A-1
Notes, issued in accordance with the Indenture.

     “Class A-2 Final Scheduled Payment Date” means[     ].

     “Class A-2 Interest Rate” means [     ]% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

3

 

     “Class A-2 Note Balance” means, at any time, the Initial Class A-2 Note Balance reduced by all
payments of principal made prior to such time on the Class A-2 Notes.

     “Class A-2 Noteholder” means the Person in whose name a Class A-2 Note is registered on the
Note Register.

     “Class A-2 Notes” means the Class of auto loan asset backed notes designated as Class A-2
Notes, issued in accordance with the Indenture.

     “Class A-3 Final Scheduled Payment Date” means[     ].

     “Class A-3 Interest Rate” means [     ]% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class A-3 Note Balance” means, at any time, the Initial Class A-3 Note Balance reduced by all
payments of principal made prior to such time on the Class A-3 Notes.

     “Class A-3 Noteholder” means the Person in whose name a Class A-3 Note is registered on the
Note Register.

     “Class A-3 Notes” means the Class of auto loan asset backed notes designated as Class A-3
Notes, issued in accordance with the Indenture.

     “Class A-4 Final Scheduled Payment Date” means[     ].

     “Class A-4 Interest Rate” means [     ]% per annum (computed on the basis of a 360-day year of
twelve 30-day months).

     “Class A-4 Note Balance” means, at any time, the Initial Class A-4 Note Balance reduced by all
payments of principal made prior to such time on the Class A-4 Notes.

     “Class A-4 Noteholder” means the Person in whose name a Class A-4 Note is registered on the
Note Register.

     “Class A-4 Notes” means the Class of auto loan asset backed notes designated as Class A-4
Notes, issued in accordance with the Indenture.

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

     “Clearing Agency Participant” means a broker, dealer, bank or other financial institution or
other Person for which from time to time a Clearing Agency effects book-entry transfers and pledges
of securities deposited with the Clearing Agency.

     “Closing Date” means [     ].

     “Code” means the Internal Revenue Code of 1986, as amended, modified or supplemented from time
to time, and any successor law thereto, all the regulations promulgated and the rulings issued
thereunder.

4

 

     “Collateral” has the meaning set forth in the Granting Clause of the Indenture.

     “Collection Account” means the trust account established and maintained pursuant to
Section 4.1 of the Sale and Servicing Agreement.

     “Collection Period” means the period commencing on the first day of each fiscal month of the
Servicer and ending on the last day of such fiscal month (or, in the case of the initial Collection
Period, the period commencing on the close of business on the Cut-Off Date and ending on [ ]). As
used herein, the “related” Collection Period with respect to a Payment Date shall be deemed to be
the Collection Period which precedes such Payment Date.

     “Collections” means, with respect to any Receivable and to the extent received by the Servicer
after the Cut-Off Date, (i) any monthly payment by or on behalf of the Obligor thereunder, (ii) any
full or partial prepayment of such Receivable, (iii) all Liquidation Proceeds and (iv) any other
amounts received by the Servicer which, in accordance with the Customary Servicing Practices, would
customarily be applied to the payment of accrued interest or to reduce the Outstanding Principal
Balance of such Receivable; provided, however, that the term “Collections” in no event will include
(1) for any Payment Date, any amounts in respect of any Receivable the Repurchase Price of which
has been included in the Available Funds on such Payment Date or a prior Payment Date, (2) any
Supplemental Servicing Fees or (3) rebates of premiums with respect to the cancellation or
termination of any Insurance Policy, extended warranty or service contract.

     “Commission” means the U.S. Securities and Exchange Commission.

     “Contract Rate” means, with respect to a Receivable, the rate per annum at which interest
accrues under the retail motor vehicle installment sales contract or installment loan evidencing
such Receivable. Such rate may be less than the “Annual Percentage Rate” disclosed in the
Receivable.

     “Corporate Trust Office” means:

     (a) as used with respect to Indenture Trustee, the principal office of the Indenture Trustee
at which at any particular time its corporate trust business shall be administered which office at
date of the execution of the Indenture is located at [ ], Attention: Administrator, or at such
other address as the Indenture Trustee may designate from time to time by notice to the
Noteholders, the Administrator, the Servicer and the Issuer, or the principal corporate trust
office of any successor Indenture Trustee (the address of which the successor Indenture Trustee
will notify the Noteholders, the Administrator, the Servicer and the Owner Trustee); and

     (b) as used with respect to Owner Trustee, the corporate trust office of the Owner, Trustee, [
] or at such other address as the Owner Trustee may designate by notice to the Certificateholder
and the Seller, or the principal corporate trust office of any successor Owner Trustee (the address
of which the successor Owner Trustee will notify the Certificateholder and the Seller).

     “Cumulative Net Loss” means, for any Payment Date, the excess of (a) the aggregate Outstanding
Principal Balance of all Receivables that became Defaulted Receivables since the

5

 

Cut-Off Date over (b) aggregate Liquidation Proceeds for all Receivables that became Defaulted
Receivables since the Cut-Off Date.

     “Cumulative Net Loss Ratio” means, for any Payment Date, the ratio (expressed as a percentage)
computed by dividing (a) the Cumulative Net Loss for that Payment Date by (b) the Net Pool Balance
as of the Cut-Off Date.

     “Customary Servicing Practices” means the customary servicing practices of the Servicer or any
Sub-Servicer with respect to all comparable motor vehicle receivables that the Servicer or such
Sub-Servicer, as applicable, services for itself and others, as such practices may be changed from
time to time, it being understood that the Servicer and the Sub-Servicers may not have the same
“Customary Servicing Practices”.

     “Cut-Off Date” means[     ].

     “Dealer” means a motor vehicle dealership.

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

     “Defaulted Receivable” means, with respect to any Collection Period and any Receivable, the
earlier of (a) the date on which any payment is past due 90 or more days or (b) the date on which
the related Financed Vehicle has been repossessed whichever occurs first. The Outstanding
Principal Balance of any Receivable that becomes a “Defaulted Receivable” will be deemed to be zero
as of the date it becomes a “Defaulted Receivable”.

     “Definitive Note” means a definitive fully registered Note issued pursuant to Section
2.12 of the Indenture.

     “Delivery” when used with respect to Trust Account Property means:

     (a) with respect to (I) bankers’ acceptances, commercial paper, negotiable certificates of
deposit and other obligations that constitute “instruments” as defined in Section 9-102(47) of the
UCC and are susceptible of physical delivery, transfer of actual possession thereof to the
Indenture Trustee or its nominee or custodian by physical delivery to the Indenture Trustee or its
nominee or custodian endorsed to, or registered in the name of, the Indenture Trustee or its
nominee or custodian or endorsed in blank, and (II) with respect to a “certificated security” (as
defined in Section 8-102(a)(4) of the UCC) transfer of actual possession thereof (i) by physical
delivery of such certificated security to the Indenture Trustee or its nominee or custodian
endorsed to, or registered in the name of, the Indenture Trustee or its nominee or custodian or
endorsed in blank, or to another person, other than a “securities intermediary” (as defined in
Section 8-102(a)(14) of the UCC), who acquires possession of the certificated security on behalf of
the Indenture Trustee or its nominee or custodian or, having previously acquired possession of the
certificate, acknowledges that it holds for the Indenture Trustee or its nominee or custodian or
(ii) by delivery thereof to a “securities intermediary”, endorsed to or registered in the name of
the Indenture Trustee or its nominee or custodian, or endorsed in blank, and the making by such
“securities intermediary” of entries on its books and records identifying such certificated
securities as belonging to the Indenture Trustee or its nominee or custodian and the sending by

6

 

such “securities intermediary” of a confirmation of the purchase of such certificated security
by the Indenture Trustee or its nominee or custodian (all of the foregoing, “Physical Property”),
and, in any event, any such Physical Property in registered form shall be in the name of the
Indenture Trustee or its nominee or custodian; and such additional or alternative procedures as may
hereafter become appropriate to effect the complete transfer of ownership of any such Trust Account
Property to the Indenture Trustee or its nominee or custodian, consistent with changes in
applicable law or regulations or the interpretation thereof;

     (b) with respect to any securities issued by the U.S. Treasury, the Federal Home Loan Mortgage
Corporation, the Federal National Mortgage Association or the other government agencies,
instrumentalities and establishments of the United States identified in Appendix A to Federal
Reserve Bank Operating Circular No. 7 as in effect from time to time that is a “book-entry
security” (as such term is defined in Federal Reserve Bank Operating Circular No. 7) held in a
securities account and eligible for transfer through the Fedwire® Securities Service operated by
the Federal Reserve System pursuant to Federal book-entry regulations, the following procedures,
all in accordance with applicable law, including applicable Federal regulations and Articles 8 and
9 of the UCC: book-entry registration of such Trust Account Property to an appropriate securities
account maintained with a Federal Reserve Bank by a “participant” (as such term is defined in
Federal Reserve Bank Operating Circular No. 7) that is a “depository institution” (as defined in
Section 19(B)(1)(A) of the Federal Reserve Act) pursuant to applicable Federal regulations, and
issuance by such depository institution of a deposit advice or other written confirmation of such
book-entry registration to the Indenture Trustee or its nominee or custodian of the purchase by the
Indenture Trustee or its nominee or custodian of such book-entry securities; the making by such
depository institution of entries in its books and records identifying such book entry security
held through the Federal Reserve System pursuant to Federal book-entry regulations or a security
entitlement thereto as belonging to the Indenture Trustee or its nominee or custodian and
indicating that such depository institution holds such Trust Account Property solely as agent for
the Indenture Trustee or its nominee or custodian; and such additional or alternative procedures as
may hereafter become appropriate to effect complete transfer of ownership of any such Trust Account
Property to the Indenture Trustee or its nominee or custodian, consistent with changes in
applicable law or regulations or the interpretation thereof; and

     (c) with respect to any item of Trust Account Property that is an uncertificated security (as
defined in Section 8-102(a)(18) of the UCC) and that is not governed by clause (b) above, (i)
registration on the books and records of the issuer thereof in the name of the Indenture Trustee or
its nominee or custodian, or (ii) registration on the books and records of the issuer thereof in
the name of another person, other than a securities intermediary, who acknowledges that it holds
such uncertificated security for the benefit of the Indenture Trustee or its nominee or custodian.

     “Depositor” means the Seller in its capacity as Depositor under the Trust Agreement.

     “Determination Date” means the second Business Day preceding the related Payment Date,
beginning [     ];

     “Dollar” and “$” mean lawful currency of the United States of America.

7

 

     “DTC” means The Depository Trust Company, and its successors.

     “Eligible Account” means either (a) a segregated account with an Eligible Institution or (b) a
segregated trust account with the corporate trust department of a depository institution acting in
its fiduciary capacity organized under the laws of the United States of America or any one of the
states thereof or the District of Columbia (or any domestic branch of a foreign bank), having
corporate trust powers and acting as trustee for funds deposited in such account, so long as the
long-term unsecured debt of such depository institution shall have a credit rating from each Rating
Agency in one of its generic rating categories which signifies investment grade. Any such trust
account may be maintained with the Owner Trustee, the Indenture Trustee or any of their respective
Affiliates, if such accounts meet the requirements described in clause (b) of the preceding
sentence.

     “Eligible Institution” means a depository institution or trust company (which may be the Owner
Trustee, the Indenture Trustee or any of their respective Affiliates) organized under the laws of
the United States of America or any one of the states thereof or the District of Columbia (or any
domestic branch of a foreign bank) (a) which at all times has either (i) a long-term senior
unsecured debt rating of “Aa2” or better by Moody’s and “AA-” or better by Standard & Poor’s or
such other rating that is acceptable to each Rating Agency, as evidenced by a letter from such
Rating Agency to the Issuer or the Indenture Trustee, (ii) a certificate of deposit rating of “P-1”
by Moody’s and “A-1+” by Standard & Poor’s or (iii) such other rating that is acceptable to each
Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or the Indenture
Trustee and (b) whose deposits are insured by the Federal Deposit Insurance Corporation; provided,
that a foreign financial institution shall be deemed to satisfy clause (b) if such foreign
financial institution meets the requirements of Rule 13k-1(b)(1) under the Exchange Act (17 CFR
§240.13k-1(b)(1)).

     “Eligible Receivable” means a Receivable meeting all of the criteria set forth on Schedule
I of each of the Purchase Agreement and the Sale and Servicing Agreement as of the Closing
Date.

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

     “Event of Default” has the meaning set forth in Section 5.1 of the Indenture.

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

     “Exchange Act Reports” means any reports on Form 10-D, Form 8-K and Form 10-K filed or to be
filed by the Seller with respect to the Issuer under the Exchange Act.

     “Final Scheduled Payment Date” means, with respect to (i) the Class A-1 Notes, the Class A-1
Final Scheduled Payment Date, (ii) the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date,
(iii) the Class A-3 Notes, the Class A-3 Final Scheduled Payment Date and (iv) the Class A-4 Notes,
the Class A-4 Final Scheduled Payment Date.

     “Financed Vehicle” means an automobile or light-duty truck, together with all accessions
thereto, securing an Obligor’s indebtedness under the applicable Receivable.

8

 

     “Form 10-D Disclosure Item” means, with respect to any Person, (a) any legal proceedings
pending against such Person or of which any property of such Person is then subject, or (b) any
proceedings known to be contemplated by governmental authorities against such Person or of which
any property of such Person would be subject, in each case that would be material to the
Noteholders.

     “GAAP” means generally accepted accounting principles in the USA, applied on a materially
consistent basis.

     “Governmental Authority” means any (a) Federal, state, municipal, foreign or other
governmental entity, board, bureau, agency or instrumentality, (b) administrative or regulatory
authority (including any central bank or similar authority) or (c) court or judicial authority.

     “Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey,
assign, transfer, create, grant a lien upon and a security interest in and right of set-off
against, deposit, set over and confirm pursuant to the Indenture. A Grant of the Collateral or of
any other agreement or instrument shall include all rights, powers and options (but none of the
obligations) of the Granting party thereunder, including the immediate and continuing right to
claim for, collect, receive and give receipt for principal and interest payments in respect of the
Collateral and all other moneys payable thereunder, 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 Granting party or otherwise and generally to do and receive anything
that the Granting party is or may be entitled to do or receive thereunder or with respect thereto.
Other forms of the verb “to Grant” shall have correlative meanings.

     “Holder” means, as the context may require, the Certificateholder or a Noteholder or both.

     “Indenture” means the Indenture, dated as of the Closing Date, between the Issuer and
Indenture Trustee, as the same may be amended and supplemented from time to time.

     “Indenture Trustee” means [          ], a [national banking association], not in its
individual capacity but as indenture trustee under the Indenture, or any successor trustee under
the Indenture.

     “Independent” means, when used with respect to any specified Person, that such Person (i) is
in fact independent of the Issuer, any other obligor upon the Notes, the Administrator and any
Affiliate of any of the foregoing Persons, (ii) does not have any direct financial interest or any
material indirect financial interest in the Issuer, any such other obligor, the Administrator or
any Affiliate of any of the foregoing Persons and (iii) is not connected with the Issuer, any such
other obligor, the Administrator or any Affiliate of any of the foregoing Persons as an officer,
employee, promoter, underwriter, trustee, partner, director or Person performing similar functions.

     “Independent Certificate” means a certificate or opinion to be delivered to the Indenture
Trustee under the circumstances described in, and otherwise complying with, the applicable
requirements of Section 11.1 of the Indenture, made by an independent appraiser or other
expert appointed by an Issuer Order, and such opinion or certificate shall state that the signer
has read

9

 

the definition of “Independent” in this Appendix A and that the signer is Independent within
the meaning thereof.

     “Initial Certificate Balance” means $[     ].

     “Initial Class A-1 Note Balance” means $[     ].

     “Initial Class A-2 Note Balance” means $[     ].

     “Initial Class A-3 Note Balance” means $[     ].

     “Initial Class A-4 Note Balance” means $[     ].

     “Initial Note Balance” means, for any Class, the Initial Class A-1 Note Balance, the Initial
Class A-2 Note Balance, the Initial Class A-3 Note Balance or the Initial Class A-4 Note Balance,
as applicable, or with respect to the Notes generally, the sum of the foregoing.

     “Initial Reserve Account Deposit Amount” means an amount equal to $[     ].

     “Insurance Policy” means (i) any theft and physical damage insurance policy maintained by the
Obligor under a Receivable, providing coverage against loss or damage to or theft of the related
Financed Vehicle, and (ii) any credit life or credit disability insurance maintained by an Obligor
in connection with any Receivable.

     “Interest Period” means, with respect to any Payment Date, from and including the Closing Date
(in the case of the first Payment Date) or from and including the most recent Payment Date to but
excluding that Payment Date.

     “Interest Rate” means (a) with respect to the Class A-1 Notes, the Class A-1 Interest Rate,
(b) with respect to the Class A-2 Notes, the Class A-2 Interest Rate, (c) with respect to the Class
A-3 Notes, the Class A-3 Interest Rate or (d) with respect to the Class A-4 Notes, the Class A-4
Interest Rate.

     “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to time,
and any successor thereto, and the regulations promulgated and the rulings issued thereunder.

     “Issuer” means Volkswagen Auto Loan Enhanced Trust 20[     ]-[     ], a Delaware statutory trust
established pursuant to the Trust Agreement and the filing of the Certificate of Trust, until a
successor replaces it and, thereafter, means such successor.

     “Issuer Order” and “Issuer Request” means a written order or request of the Issuer signed in
the name of the Issuer by any one of its Authorized Officers and delivered to the Indenture
Trustee.

     “Item 1119 Party” means the Seller, VCI, the Servicer, the Indenture Trustee, the Owner
Trustee, any underwriter of the Notes, any Swap Counterparty and any other material transaction
party identified by the Seller or VCI to the Indenture Trustee and the Owner Trustee in writing.

10

 

     “Lien” means, for any asset or property of a Person, a lien, security interest, mortgage,
pledge or encumbrance in, of or on such asset or property in favor of any other Person, except any
Permitted Lien.

     “Liquidation Proceeds” means, with respect to any Receivable, (a) insurance proceeds received
by the Servicer with respect to the Insurance Policies, (b) amounts received by the Servicer in
connection with such Receivable pursuant to the exercise of rights under such Receivable and (c)
the monies collected by the Servicer (from whatever source, including proceeds of a sale of a
Financed Vehicle, a deficiency balance recovered from the Obligor after the charge-off of such
Receivable or as a result of any recourse against the related Dealer, if any) on such Receivable,
in the case of each of the foregoing clauses (a) through (c), net of any expenses (including,
without limitation, any auction, painting, repair or refurbishment expenses in respect of the
related Financed Vehicle) incurred by the Servicer in connection therewith and any payments
required by law to be remitted to the Obligor; provided, however, that the Repurchase Price for
any Receivable shall not constitute “Liquidation Proceeds”.

     “Monthly Remittance Condition” has the meaning set forth in Section 4.2 of the Sale
and Servicing Agreement.

     “Moody’s” means Moody’s Investors Service, Inc., or any successor that is a nationally
recognized statistical rating organization.

     “Net Pool Balance” means, as of any date, the aggregate Outstanding Principal Balance of all
Receivables (other than Defaulted Receivables) of the Issuer on such date.

     “Note” means a Class A-1 Note, Class A-2 Note, Class A-3 Note or Class A-4 Note, in each case
substantially in the form of Exhibit A to the Indenture.

     “Note Balance” means, with respect to any date of determination, for any Class, the Class A-1
Note Balance, the Class A-2 Note Balance, the Class A-3 Note Balance or the Class A-4 Note Balance,
as applicable, or with respect to the Notes generally, the sum of all of the foregoing.

     “Note Depository Agreement” means the agreement, dated as of the Closing Date, between the
Issuer and DTC, as the initial Clearing Agency relating to the Notes, as the same may be amended or
supplemented from time to time.

     “Note Factor” means, with respect to the Notes or any Class of Notes on any Payment Date, a
six-digit decimal figure equal to the Note Balance of the Notes or such Class of Notes, as
applicable, as of the end of the preceding Collection Period divided by the Note Balance of the
Notes or such Class of Notes, as applicable, as of the Closing Date. The Note Factor will be
1.000000 as of the Closing Date; thereafter, the Note Factor will decline to reflect reductions in
the Note Balance of the Notes or such Class of Notes, as applicable.

     “Note Owner” means, with respect to a Book-Entry Note, the Person who is the beneficial owner
of such Book-Entry Note, as reflected on the books of the Clearing Agency or a Person maintaining
an account with such Clearing Agency (directly as a Clearing Agency

11

 

Participant or as an indirect participant, in each case in accordance with the rules of such
Clearing Agency).

     “Note Register” and “Note Registrar” have the respective meanings set forth in Section
2.4 of the Indenture.

     “Noteholder” means, as the context requires, all of the Class A-1 Noteholders, the Class A-2
Noteholders, the Class A-3 Noteholders and the Class A-4 Noteholders, or any of the Class A-1
Noteholders, the Class A-2 Noteholders, the Class A-3 Noteholders or the Class A-4 Noteholders.

     “Noteholders’ Interest Carryover Shortfall” means, with respect to any Payment Date, the
excess of the Noteholders’ Monthly Accrued Interest for the preceding Payment Date and any
outstanding Noteholders’ Interest Carryover Shortfall on such preceding Payment Date, over the
amount in respect of interest that is actually paid to Noteholders on such preceding Payment Date,
plus interest on the amount of interest due but not paid to Noteholders on the preceding Payment
Date, to the extent permitted by law, at the respective Interest Rates borne by such Notes for the
related Interest Period.

     “Noteholders’ Monthly Accrued Interest” means, with respect to any Payment Date, the aggregate
interest accrued for the related Interest Period on the Class A-1 Notes, the Class A-2 Notes, the
Class A-3 Notes and the Class A-4 Notes at the respective Interest Rate for such Class on the Note
Balance of the Notes of each such Class on the immediately preceding Payment Date or the Closing
Date, as the case may be, after giving effect to all payments of principal to the Noteholders of
the Notes of such Class on or prior to such preceding Payment Date.

     “Noteholder” means, as of any date, the Person in whose name a Note is registered on the Note
Register on such date.

     “Obligor” means, for any Receivable, each Person obligated to pay such Receivable.

     “Officer’s Certificate” means (i) with respect to the Issuer, a certificate signed by any
Authorized Officer of the Issuer and (ii) with respect to the Seller or 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 or the controller of the Seller or the Servicer,
as applicable.

     “Opinion of Counsel” means one or more written opinions of counsel who may, except as
otherwise expressly provided in the Indenture or any other applicable Transaction Document, be
employees of or counsel to the Issuer, the Servicer, the Seller or the Administrator, and which
opinion or opinions comply with any applicable requirements of the Transaction Documents and are in
form and substance reasonably satisfactory to the recipient(s). Opinions of Counsel need address
matters of law only and may be based upon stated assumptions as to relevant matters of fact.

     “Optional Purchase” has the meaning set forth in Section 8.1 of the Sale and Servicing
Agreement.

12

 

     “Optional Purchase Price” has the meaning set forth in Section 8.1 of the Sale and
Servicing Agreement.

     “Originator” means, with respect to any Receivable, VCI.

     “Other Assets” means any assets (or interests therein) (other than the Trust Estate) conveyed
or purported to be conveyed by the Seller to another Person or Persons other than the Issuer,
whether by way of a sale, capital contribution or by virtue of the granting of a lien.

     “Outstanding” means, as of any date, all Notes (or all Notes of an applicable Class)
theretofore authenticated and delivered under the Indenture except:

     (i) Notes (or Notes of an applicable Class) theretofore cancelled by the Note Registrar or
delivered to the Note Registrar for cancellation;

     (ii) Notes (or Notes of an applicable Class) or portions thereof the payment for which money
in the necessary amount has been theretofore deposited with the Indenture Trustee or any Paying
Agent in trust for the related Noteholders (provided, however, that if such Notes are to be
redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision
therefor, satisfactory to the Indenture Trustee, has been made); and

     (iii) Notes (or Notes of an applicable Class) in exchange for or in lieu of other Notes (or
Notes of such Class) that 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 determining whether Noteholders holding the requisite aggregate
principal amount of Outstanding Notes have given any request, demand, authorization, direction,
notice, consent or waiver hereunder or under any Transaction Document, Notes owned by the Issuer,
the Seller, the Servicer, the Administrator or any of their respective Affiliates shall be
disregarded and deemed not to be Outstanding unless all of the Notes are then owned by the
Issuer, the Seller, the Servicer, the Administrator or any of the their respective Affiliates,
except that, in determining whether the Indenture Trustee shall be protected in relying upon any
such request, demand, authorization, direction, notice, consent, vote or waiver, only Notes that a
Responsible Officer of the Indenture Trustee knows to be so owned shall be so disregarded. Notes
so owned that have been pledged in good faith may be regarded as Outstanding if the pledgee thereof
establishes to the satisfaction of the Indenture Trustee such pledgee’s right so to act with
respect to such Notes and that such pledgee is not the Issuer, the Seller, the Servicer, the
Administrator or any of their respective Affiliates.

     “Outstanding Principal Balance” means, with respect to any Receivable as of any date, the
outstanding principal balance of such Receivable calculated in accordance with the Customary
Servicing Practices.

     “Owner Trustee” means [          ], a [Delaware banking corporation], not in its individual
capacity but solely as owner trustee under the Trust Agreement, and any successor Owner Trustee
thereunder.

     “Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility
standards for the Indenture Trustee set forth in Section 6.11 of the Indenture and is
authorized by

13

 

the Issuer to make the payments to and distributions from the Principal Distribution Account,
including the payment of principal of or interest on the Notes on behalf of the Issuer.

     “Payment Date” means the 20th day of each calendar month beginning [  ]; provided,
however, whenever a Payment Date would otherwise be a day that is not a Business Day, the Payment
Date shall be the next Business Day. As used herein, the “related” Payment Date with respect to a
Collection Period shall be deemed to be the Payment Date which follows such Collection Period.

     “Payment Default” has the meaning set forth in Section 5.4(a) of the Indenture.

     “Permitted Investments” means (a) evidences of indebtedness, maturing within thirty (30) days
after the date of loan thereof, issued by, or guaranteed by the full faith and credit of, the
federal government of the USA, (b) repurchase agreements with banking institutions or
broker-dealers registered under the Exchange Act which are fully secured by obligations of the kind
specified in clause (a), (c) money market funds (i) rated not lower than the highest rating
category from Moody’s and “AAA m” or “AAAm-g” from Standard & Poor’s or (ii) which are otherwise
acceptable to each Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or
the Indenture Trustee, (d) commercial paper (including commercial paper of any Affiliate of the
Seller, the Servicer, the Indenture Trustee or the Owner Trustee) rated, at the time of the
investment or contractual commitment to invest therein, at least “A-1+” (or the equivalent) by
Standard & Poor’s and at least “P-1” (or the equivalent) by Moody’s or (e) such other investments
acceptable to each Rating Agency, as evidenced by a letter from such Rating Agency to the Issuer or
the Indenture Trustee.

     “Permitted Liens” means (a) the interest of the parties under the Transaction Documents, (b)
any liens for taxes not due and payable or the amount of which is being contested in good faith by
appropriate proceedings and (c) any liens of mechanics, suppliers, vendors, materialmen, laborers,
employees, repairmen and other like liens securing obligations which are not due and payable or the
amount or validity of which is being contested in good faith by appropriate proceedings.

     “Person” means any individual, corporation, limited liability company, estate, partnership,
joint venture, association, joint stock company, trust (including any beneficiary thereof),
unincorporated organization or government or any agency or political subdivision thereof.

     “Physical Property” has the meaning specified in the definition of “Delivery” above.

     “Predecessor Note” means, with respect to any particular Note, every previous Note evidencing
all or a portion of the same debt as that evidenced by such particular Note; provided, however, for
the purpose of this definition, any Note authenticated and delivered under Section 2.5 of
the Indenture in lieu of a mutilated, destroyed, lost or stolen Note shall be deemed to evidence
the same debt as the mutilated, destroyed, lost or stolen Note.

     “Principal Distribution Account” means the account by that name established and maintained
pursuant to Section 4.1 of the Sale and Servicing Agreement.

14

 

     “Principal Distribution Amount” will mean, for any Payment Date, an amount equal to the
excess, if any, of (a) the Adjusted Pool Balance as of the end of the Collection Period preceding
the related Collection Period, or as of the Cut-Off Date, in the case of the first Collection
Period, over (b) the Adjusted Pool Balance as of the end of the related Collection Period, together
with any portion of the Principal Distribution Amount that was to be distributed as such on any
prior Payment Date but was not because sufficient funds were not available to make such
distribution; provided, that if the Servicer specifies in the Servicer’s Certificate that amounts
on deposit in the Reserve Account will be included in the Reserve Account Draw Amount on any
Payment Date in accordance with the provisions set forth in the second sentence of the definition
of Reserve Account Draw Amount, then, the Principal Distribution Amount for such Payment Date will
mean an amount equal to the aggregate unpaid Note Balance of all of the outstanding classes of
Notes.

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

     “Purchase Agreement” means the Purchase Agreement dated as of the Closing Date between VCI and
the Seller, as amended, modified or supplemented from time to time.

     “Purchased Assets” has the meaning set forth in Section 2.1 of the Purchase Agreement.

     “Rating Agency” means either or each of Moody’s and Standard & Poor’s, as indicated by the
context.

     “Rating Agency Condition” means, with respect to any event or circumstance and each Rating
Agency, either (a) written confirmation by such Rating Agency that the occurrence of such event or
circumstance will not cause it to downgrade, qualify or withdraw its rating assigned to any of the
Notes or (b) in the case of Moody’s only, that such Rating Agency shall have been given notice of
such event or circumstance at least ten days prior to the occurrence of such event or circumstance
(or, if ten days’ advance notice is impracticable, as much advance notice as is practicable) and
such Rating Agency shall not have issued any written notice that the occurrence of such event or
circumstance will cause it to downgrade, qualify or withdraw its rating assigned to the Notes.
Notwithstanding the foregoing, no Rating Agency has any duty to review any notice given with
respect to any event, and it is understood that such Rating Agency may not actually review notices
received by it prior to or after the expiration of the ten (10) day period described in (b)
above. Further, each Rating Agency retains the right to downgrade, qualify or withdraw its rating
assigned to all or any of the Notes at any time in its sole judgment even if the Rating Agency
Condition with respect to an event had been previously satisfied pursuant to clause (a) or
clause (b) above.

     “Receivable” means any retail motor vehicle installment sales contract or installment loan
with respect to a new or used automobile or light-duty truck which shall appear on the Schedule of
Receivables and all Related Security in connection therewith which has not been released from the
lien of the Indenture.

     “Receivable Files” is defined in Section 2.4(a) of the Sale and Servicing Agreement.

15

 

     “Record Date” means, unless otherwise specified in any Transaction Document, with respect to
any Payment Date or Redemption Date, (i) for any Definitive Notes and for the Certificates, the
close of business on the last Business Day of the calendar month immediately preceding the calendar
month in which such Payment Date or Redemption Date occurs and (ii) for any Book-Entry Notes, the
close of business on the Business Day immediately preceding such Payment Date or Redemption Date.

     “Records” means, for any Receivable, all contracts, books, records and other documents or
information (including computer programs, tapes, disks, software and related property and rights,
to the extent legally transferable) relating to such Receivable or the related Obligor.

     “Redemption Date” means, in the case of a redemption of the Notes pursuant to Section
10.1 of the Indenture, the Payment Date specified by the Administrator or the Issuer pursuant
to Section 10.1 of the Indenture.

     “Redemption Price” means an amount equal to the unpaid principal amount of the Notes redeemed
plus accrued and unpaid interest thereon at the applicable Interest Rate for the Notes being so
redeemed, up to but excluding the Redemption Date.

     “Registered Holder” means the Person in whose name a Note is registered on the Note Register
on the related Record Date.

     “Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17 C.F.R.
§§229.1110-229.1123, as such regulation may be amended from time to time and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518. 70 Fed. Reg. 1,506, 1,531 (January 7,
2005)) or by the staff of the Commission, or as may be provided in writing by the Commission or its
staff from time to time.

     “Related Security” means, for any Receivable, (i) the security interest in the related
Financed Vehicle, (ii) any proceeds from claims on any Insurance Policy (if such Receivable became
a Defaulted Receivable after the Cut-Off Date), (iii) any other property securing the Receivables,
(iv) all rights of the applicable Originator against the related Dealer and (v) all proceeds of the
foregoing.

     “Reportable Event” means any event required to be reported on Form 8-K, and in any event, the
following:

     (a) entry into a material definitive agreement related to the Issuer or the Notes or an
amendment to a Transaction Document, even if the Seller is not a party to such agreement
(e.g., a servicing agreement with a servicer contemplated by Item 1108(a)(3) of Regulation
AB);

     (b) termination of a Transaction Document (other than by expiration of the agreement on
its stated termination date or as a result of all parties completing their obligations under
such agreement), even if the Seller is not a party to such agreement (e.g., a servicing
agreement with a servicer contemplated by Item 1108(a)(3) of Regulation AB);

16

 

     (c) with respect to the Servicer only, the occurrence of a Servicer Replacement Event;

     (d) an Event of Default;

     (e) the resignation, removal, replacement, or substitution of the Indenture Trustee or
the Owner Trustee; and

     (f) with respect to the Indenture Trustee only, a required distribution to holders of
the Notes is not made as of the required Payment Date under the Indenture.

     “Repurchase Price” means, with respect to any Repurchased Receivable, a price equal to the
Outstanding Principal Balance of such Receivable plus any unpaid accrued interest related to such
Receivable accrued to and including the end of the Collection Period preceding the date that such
Repurchased Receivable was purchased by VCI, the Servicer or the Seller, as applicable.

     “Repurchased Receivable” means a Receivable purchased by VCI pursuant to Section 3.3
of the Purchase Agreement, by the Servicer pursuant to Section 3.6 of the Sale and
Servicing Agreement or by the Seller pursuant to Section 2.3 of the Sale and Servicing
Agreement.

     “Reserve Account” means the account designated as such, established and maintained pursuant to
Section 4.1 of the Sale and Servicing Agreement.

     “Reserve Account Draw Amount” means, for any Payment Date, the amount withdrawn from the
Reserve Account, equal to the lesser of (a) the Available Funds Shortfall Amount, if any, or (b)
the amount on deposit in the Reserve Account on such Payment Date. In addition, if the sum of the
amounts in the Reserve Account and the remaining Available Funds after the payments under clauses
first through fourth of Section 4.4(a) of the Sale and Servicing Agreement would be
sufficient to pay in full the aggregate unpaid Note Balance of all of the outstanding Classes of
Notes, then the Reserve Account Draw Amount will, if so specified by the Servicer in the Servicer’s
Certificate, include such additional amount as may be necessary to pay all Outstanding Notes in
full.

     “Reserve Account Excess Amount” means, with respect to any Payment Date, means an amount equal
to the excess, if any, of (a) the amount of cash or other immediately available funds in the
Reserve Account on that Payment Date, after giving effect to all deposits to and withdrawals from
the Reserve Account relating to that Payment Date, over (b) the Specified Reserve Account Balance
with respect to that Payment Date.

     “Responsible Officer” means, (a) with respect to the Indenture Trustee, any officer within the
corporate trust department of the Indenture Trustee, including any vice president, assistant vice
president, assistant secretary, assistant treasurer, trust officer or any other officer of the
Indenture Trustee who customarily performs functions similar to those performed by the persons who
at the time shall be such officers, respectively, or to whom any corporate trust matter is referred
because of such person’s knowledge of and familiarity with the particular subject and who, in each
case, shall have direct responsibility for the administration of the Indenture, (b) with respect to
the Owner Trustee, any officer within the Corporate Trust Office of the Owner Trustee, including
any Managing Director, Director, Vice President, Assistant Vice President,

17

 

Assistant Treasurer, Assistant Secretary or Associate, or any other officer 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, in each case, having
direct responsibility for the administration of the Issuer, and (c) with respect to the Servicer or
Seller, any officer of such Person having direct responsibility for the transactions contemplated
by the Transaction Documents, including the President, Treasurer or Secretary or any Vice
President, Controller, Assistant Vice President, Assistant Treasurer, Assistant Secretary, or any
other officer 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.

     “Sale and Servicing Agreement” means the Sale and Servicing Agreement, dated as of the Closing
Date, among the Seller, the Issuer, the Servicer and the Indenture Trustee, as the same may be
amended, modified or supplemented from time to time.

     “Sarbanes Certification” has the meaning set forth in Section 9.21(b)(iii) of the Sale and
Servicing Agreement.

     “Sarbanes-Oxley Act” means the Sarbanes-Oxley Act of 2002, as amended, modified or
supplemented from time to time, and any successor law thereto.

     “Schedule of Receivables” means the schedule of Receivables transferred to the Issuer on the
Closing Date.

     “Securities Act” means the Securities Act of 1933, as amended.

     “Seller” means Volkswagen Auto Lease/Loan Underwritten Funding, LLC, a Delaware limited
liability company.

     “Servicer” means VCI, initially, and any replacement Servicer appointed pursuant to the Sale
and Servicing Agreement.

     “Servicer Replacement Event” means any one or more of the following that shall have occurred
and be continuing:

     (a) any failure by the Servicer to deliver or cause to be delivered any required payment to
the Indenture Trustee for distribution to the Noteholders, which failure continues unremedied for
ten business days after discovery thereof by a Responsible Officer of the Servicer or receipt by
the Servicer of written notice thereof from the Indenture Trustee or Noteholders evidencing a
majority of the aggregate principal amount of the Outstanding Notes, voting together as a single
Class;

     (b) any failure by the Servicer to duly observe or perform in any material respect any other
of its covenants or agreements in the Sale and Servicing Agreement, which failure materially and
adversely affects the rights of the Issuer or the Noteholders, and which continues unremedied for
90 days after discovery thereof by a Responsible Officer of the Servicer or

18

 

receipt by the Servicer of written notice thereof from the Indenture Trustee or Noteholders
evidencing a majority of the aggregate principal amount of the Outstanding Notes, voting together
as a single Class;

     (c) any representation or warranty of the Servicer made in any Transaction Document to which
the Servicer is a party or by which it is bound or any certificate delivered pursuant to the Sale
and Servicing Agreement proves to have been incorrect in any material respect when made, which
failure materially and adversely affects the rights of the Issuer or the Noteholders, and which
failure continues unremedied for 90 days after discovery thereof by a Responsible Officer of the
Servicer or receipt by the Servicer of written notice thereof from the Indenture Trustee or
Noteholders evidencing a majority of the aggregate principal amount of the Outstanding Notes,
voting together as a single Class (it being understood that any repurchase of a Receivable by VCI
pursuant to Section 3.3 of the Purchase Agreement, by the Seller pursuant to Section
2.3 of the Sale and Servicing Agreement or by the Servicer pursuant to Section 3.6 of
the Sale and Servicing Agreement shall be deemed to remedy any incorrect representation or warranty
with respect to such Receivable); or

     (d) the Servicer suffers a Bankruptcy Event;

provided, however, that a delay or failure of performance referred to under clauses (a),
(b) or (c) above for a period of 120 days will not constitute a Servicer
Termination Event if such delay or failure was caused by force majeure or other similar occurrence.
The existence or occurrence of any “material instance of noncompliance” (within the meaning of Item
1122 of Regulation AB) shall not create any presumption that any event in clauses
(a), (b) or (c) above has occurred.

     “Servicer’s Certificate” means the certificate delivered pursuant to Section 3.8 of
the Sale and Servicing Agreement.

     “Servicing Criteria” shall mean the “servicing criteria” set forth in Item 1122(d) of
Regulation AB.

     “Servicing Fee” means, for any Payment Date, the product of (A) one-twelfth, (B) the Servicing
Fee Rate and (C) the Net Pool Balance as of the first day of the related Collection Period (or, in
the case of the first Payment Date, as of the Cut-Off Date).

     “Servicing Fee Rate” means 1.00% per annum.

     “Simple Interest Method” means the method of calculating interest due on a motor vehicle
receivable on a daily basis based on the actual outstanding principal balance of the receivable on
that date.

     “Simple Interest Receivable” means any motor vehicle receivable pursuant to which the payments
due from the Obligors during any month are allocated between interest, principal and other charges
based on the actual date on which a payment is received and for which interest is calculated using
the Simple Interest Method.

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     “Specified Reserve Account Balance” means, for any Payment Date, the lesser of $[          ]
and the aggregate outstanding principal balance of the Notes after giving effect to all payments of
principal on such Payment Date.

     “Standard & Poor’s” means Standard & Poor’s Ratings Services, a division of The McGraw-Hill
Companies, Inc., or any successor that is a nationally recognized statistical rating organization.

     “Statutory Trust Statute” means Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code §
3801 et seq.

     “Sub-Servicer” means any Affiliate of the Servicer or any sub-contractor to whom any or all
duties of the Servicer (including, without limitation, its duties as custodian) under the
Transaction Documents have been delegated in accordance with Section 6.5 of the Sale and
Servicing Agreement.

     “Supplemental Servicing Fees” means any and all (i) late fees, (ii) extension fees, (iii)
non-sufficient funds charges and (iv) any and all other administrative fees or similar charges
allowed by applicable law with respect to any Receivable.

     “TIA” or “Trust Indenture Act” means the Trust Indenture Act of 1939, as amended and as in
force on the date hereof, unless otherwise specifically provided.

     “Transaction Documents” means the Indenture, the Notes, the Note Depository Agreement, the
Sale and Servicing Agreement, the Purchase Agreement, the Administration Agreement and the Trust
Agreement, as the same may be amended or modified from time to time.

     “Transferred Assets” means (a) the Purchased Assets, (b) all of the Seller’s rights under the
Purchase Agreement and (c) all proceeds of the foregoing.

     “Trust Accounts” has the meaning set forth in Section 4.1 of the Sale and Servicing
Agreement.

     “Trust Account Property” means the Trust Accounts, all amounts and investments held from time
to time in any Trust Account (whether in the form of deposit accounts, Physical Property,
book-entry securities, uncertificated securities or otherwise), and all proceeds of the foregoing.

     “Trust Agreement” means the Trust Agreement, dated as of[ ], as amended and restated by the
Amended and Restated Trust Agreement, dated as of the Closing Date, between the Seller and the
Owner Trustee, as the same may be amended and supplemented from time to time.

     “Trust Estate” means all money, accounts, chattel paper, general intangibles, goods,
instruments, investment property and other property of the Issuer, including without limitation (i)
the Receivables acquired by the Issuer under the Sale and Servicing Agreement, the Related Security
relating thereto and Collections thereon after the Cut-Off Date, (ii) the Receivable Files, (iii)
the rights of the Issuer to the funds on deposit from time to time in the Trust Accounts and

20

 

any other account or accounts established pursuant to the Indenture or Sale and Servicing
Agreement and all cash, investment property and other property from time to time credited thereto
and all proceeds thereof (including investment earnings, net of losses and investment expenses, on
amounts on deposit therein), (iv) the rights of the Seller, as buyer, under the Purchase Agreement,
(v) the rights of the Issuer under the Sale and Servicing Agreement and (ix) all proceeds of the
foregoing.

     “UCC” means, unless the context otherwise requires, the Uniform Commercial Code as in effect
in the relevant jurisdiction, as amended from time to time.

     “United States” or “USA” means the United States of America (including all states, the
District of Columbia and political subdivisions thereof).

     “VCI” means VW Credit, Inc., a Delaware corporation, and its successors and assigns.

     “Yield Supplement Overcollateralization Amount” means, with respect to any Payment Date, the
dollar amount set forth next to such Payment Date on Schedule X hereto.

     The foregoing definitions shall be equally applicable to both the singular and plural forms of
the defined terms. Unless otherwise inconsistent with the terms of this Agreement, all accounting
terms used herein shall be interpreted, and all accounting determinations hereunder shall be made,
in accordance with GAAP. Amounts to be calculated hereunder shall be continuously recalculated at
the time any information relevant to such calculation changes.

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SCHEDULE X

YIELD SUPPLEMENT OVERCOLLATERALIZATION AMOUNT

	 	 	 
	 	 	Yield Supplement
	Payment Date	 	Overcollateralization Amount
	Closing Date

	 	$[     ]

X-1

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