Document:

Exhibit 10.6

 

2014 Equity Plan – Restricted Stock
Unit Agreement (2016)

 

 

RESTRICTED
STOCK UNIT AGREEMENT

The Coca-Cola Company 2014 Equity Plan

 

The Coca-Cola Company (the “Company”)
hereby agrees to award to the recipient named below (the “Recipient”) restricted stock units over the number of shares
of Common Stock, $.25 par value, of the Company (the “Shares”) set forth below as the “Award” in accordance
with and subject to the terms, conditions and restrictions of this Restricted Stock Unit Agreement, including any country-specific
provisions for the Recipient’s country in Appendix A attached hereto (“Appendix A”, together with the Restricted
Stock Unit Agreement, the “Agreement”). The Award shall settle as Shares, but until such settlement, the Award will
be denominated in restricted stock units. The Shares awarded will be released to the Recipient on the date set forth below (“Release
Date”) if the conditions described in this Agreement are satisfied. Such Award will be made under the terms of The Coca-Cola
Company 2014 Equity Plan (the “Plan”), as amended.

 

	 	Name of Recipient:   	XXXXXXXXXX	 
	 	Award:	XXXXXX Shares	 
	 	Award Date:	 	 
	 	Vesting Date:   	 	 
	 	Release Date:	The last trading day of the month in which the applicable Vesting Date occurs.	 

 

TERMS AND CONDITIONS OF THIS AGREEMENT

 

	(1)	General Conditions. This Award is in the form of restricted stock units that settle
in Shares at the Release Date. If all of the conditions set forth in this Agreement are satisfied, the Shares will be released
to the Recipient as soon as administratively possible following the Release Date. If these conditions are not satisfied, the Award
shall be forfeited. Capitalized terms in this Agreement refer to defined terms in the Plan, except as otherwise defined herein.
Except as provided in Section 3 or in Appendix A, the Shares shall be released on the Release Date only if the Recipient is continuously
employed by the Company, or if different, the Recipient’s employer (the “Employer”), or an Affiliate from the
Award Date until the Release Date.

 

	(2)	Shares, Dividends and Voting Rights. As soon as administratively practicable following
the Release Date, or as otherwise provided in Section 3 below, the number of indicated Shares
shall be issued to the Recipient, provided all conditions set forth in Section 1 above are
satisfied. Except as provided in Section 3 below, all Awards shall be settled in Shares. 

 

Prior to the Release Date, the Recipient shall have no rights
with respect to the Shares, including but not limited to rights to sell, vote, exchange, transfer, pledge, hypothecate or otherwise
dispose of the Shares. In addition, prior to the Release Date, the Recipient shall not be entitled to receive dividends, dividend
equivalents and shall not have any other rights with respect to the Shares.

 

	(3)	Employment Events.

 

(a)      Subject to the attached Appendix A, if any of the
employment events listed below occur prior to the Release Date, the terms of this subparagraph shall apply. The following table
describes the result depending on the reason for the Recipient’s termination of employment, or other employment event, and
the timing of the same. In the event of the Recipient’s termination of employment prior to the Release Date for reasons other
than those set forth below, the Award shall be forfeited.

 

	      Event 	Impact on Vesting	Impact on Release
	Disability	Award continues to vest if employee is still employed.	Award shall be settled in Shares on Release Date.
	Employment with the Company or a Subsidiary terminates because of Disability	Award immediately vests.	Shares will be released within 90 days after the date of termination.

 

    	 

     

    

 

	      Event 	Impact on Vesting	Impact on Release
	Employee
    is involuntary terminated from the Company or a Subsidiary after attaining age 50 and completing 10 Years of Service because
    of reduction in workforce, internal reorganization, or job elimination and employee signs a release of all claims and,
    if requested, an agreement on confidentiality and competition	Award held at least 12 months continues to vest for four years from termination date in accordance with the original vesting schedule provided in the Agreement.  Award held less than 12 months is forfeited.	Award
    shall be settled in Shares on Release Date.  If required by Section 409A of the Internal Revenue Code, Shares may
    not be released to specified employees until at least six months following termination of employment.
	Employment with the Company or a Subsidiary terminates after attaining age 60 and completing 10 Years of Service	Award held at least 12 months becomes immediately vested. Award held less than 12 months is forfeited.	Shares will be released within 90 days after the date of termination.  If required by Section 409A of the Internal Revenue Code, Shares may not be released to specified employees until at least six months following termination of employment.
	Employment with the Company or an Affiliate terminates because of death 	Award immediately vests.	The Recipient’s estate shall be paid a cash amount equal to the value of the Shares.  The value shall be determined based on the closing price of the Shares on the date of the Recipient’s death (or in the case of a non trading day, the next trading day) and shall be paid within 90 days after the Recipient’s death.
	Employment with the Company or a Subsidiary involuntarily terminates for reason other than for cause within one year after a Change in Control	Award shall be treated as described in the Plan.	Award shall be treated as described in the Plan.
	Employment with the Company or a Subsidiary terminates for any other reason	Award is forfeited.	N/A
	US military leave	Vesting continues during leave.	Award shall be settled in Shares on Release Date.
	Unpaid
    leave of absence pursuant to published Company policy of 12 months or less1	Vesting continues during leave.	Award shall be settled in Shares on Release Date.
	Transfer, at Company’s discretion, to an Affiliate that is not a Subsidiary 	Vesting continues after move. 	Award shall be settled in Shares on Release Date.
	Transfer to a Subsidiary 	Vesting continues after move. 	Award shall be settled in Shares on Release Date.
	Recipient’s employer is no longer an Affiliate under the terms of the Plan (this constitutes a termination of employment under the Plan)	Award is forfeited.	N/A
	Employment with an Affiliate terminates for any reason	Award is forfeited.	N/A

 

 

1
In the case of other leaves of absence not specified above, including all leaves that extend beyond twelve months,
optionees will be deemed to have terminated employment on the date of the leave (so that unvested options will be forfeited as
of the date the leave begins and the option exercise period will end on the earlier of six months from the date the leave began
or the option expiration date provided in the grant), unless the Committee identifies a valid business interest in doing otherwise,
in which case it may specify what provisions it deems appropriate at its sole discretion; provided that the Committee shall have
no obligation to consider any such matters.

 

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(b)       “Years of Service” for purposes of this
agreement means “Years of Vesting Service” as that term is defined in The Coca-Cola Company Pension Plan, regardless
of whether the optionee is a participant in that plan.

 

	(4)	Acceptance of Agreement. The Recipient shall indicate his or her acceptance of this Agreement, including any
Power of Attorney, if requested and in the method directed by the Company.

 

	(5)	Stock Splits and Other Adjustments. In the event that the Company’s shares, as a result of a stock split or stock dividend or combination of shares or any other change or exchange for other securities, by reclassification, reorganization or otherwise, are increased or decreased or changed into or exchanged for a different number or kind of shares of stock or other securities of the Company or of another corporation, the number of Shares to be awarded under this Agreement shall be adjusted to reflect such change in such manner as the Board of Directors of the Company or the Compensation Committee may deem appropriate. If any such adjustment shall result in a fractional share, such fraction shall be disregarded.

 

	(6)	Notices. Each notice relating to this Award shall be in writing. All notices to the Company shall be addressed
to the Secretary, The Coca-Cola Company, One Coca-Cola Plaza, Atlanta, Georgia 30313. All notices to the Recipient shall be addressed
to the address of the Recipient on file with the Company, the Employer, and/or the Company’s plan broker, Merrill, Lynch,
Pierce, Fenner & Smith Incorporated (“Merrill Lynch”). Either the Company or the Recipient may designate a different
address by written notice to the other. Written notice to said addresses shall be effective to bind the Company, the Recipient
and the Recipient's representatives and beneficiaries.

 

	(7)	Responsibility for Taxes. 

 

(a)      Irrespective of any action taken by the Company
or the Employer, the Recipient hereby acknowledges and agrees that the ultimate liability for all income tax, social insurance,
payroll tax, fringe benefits tax, payment on account or other tax-related items related to the Recipient’s participation
in the Plan and legally applicable to the Recipient (“Tax-Related Items”), is and remains the responsibility of the
Recipient or the Recipient’s estate (as applicable) and may exceed the amount actually withheld by the Company or the Employer.
The Recipient acknowledges and understands that the requirements with respect to the Tax-Related Items may change from time to
time as applicable laws or interpretations change.

 

(b)      Prior to any relevant
taxable or tax withholding event, as applicable, the Recipient agrees to make adequate arrangements satisfactory to the Company
and/or the Employer to satisfy all Tax-Related Items. In this regard, the Recipient authorizes the Company, the Employer, and
their respective agents, at their discretion, to satisfy the obligations with regard to all Tax-Related Items withholding obligations
by one or a combination of the following:

 

		(1)	withholding from the Recipient’s wages or other cash compensation paid to the Recipient
by the Company and/or the Employer, or any other payment of any kind otherwise due to the Recipient by the Company and/or the Employer;
or

 

		(2)	withholding from proceeds of the sale of Shares acquired upon vesting/settlement of the Award,
either through a voluntary sale or through a mandatory sale arranged by the Company (on the Recipient’s behalf pursuant to
this authorization without further consent); or 

 

		(3)	retention of or withholding in Shares to be issued upon vesting/settlement of the Award.

 

(c)      If the obligation for Tax-Related Items is satisfied
by withholding in Shares, for tax purposes, the Recipient is deemed to have been issued the full number of Shares subject to the
Award, notwithstanding that a number of the Shares are retained solely for the purpose of paying the Tax-Related Items.

 

(d)      In addition, the Recipient shall pay to the Company
or the Employer any amount of Tax-Related Items that the Company or the Employer may be required to withhold or account for as
a result of the Recipient’s participation in the Plan that cannot be satisfied by the means previously described. The Company
may refuse to issue or deliver the Shares or the proceeds of the sale of Shares, if the Recipient fails to comply with the Recipient’s
obligations in connection with the Tax-Related Items.

 

(e)      The Recipient further acknowledges that the Company
and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in connection
with any aspect of the Award, including, but not limited to, the grant, vesting, settlement or release of the Award, the issuance
of Shares upon settlement or release of the Award, the subsequent sale of Shares acquired pursuant to such settlement or release
and the receipt of any dividends and/or dividend equivalents; and (2) do not commit to and are under no obligation to structure
the terms of the grant or any aspect of the Award to reduce or eliminate the Recipient’s liability for Tax-Related Items
or achieve any particular tax result. Further, if the Recipient is subject to tax in more than one jurisdiction, the Recipient
acknowledges that the Company and/or the Employer (or former employer, as applicable) may be required to withhold or account
for Tax-Related Items in more than one jurisdiction. For Recipients who are International Service Associates or covered by another
international service policy, all Tax-Related Items remain the Recipient’s responsibility, except as expressly provided in
the Company’s International Service Policy and/or Tax Equalization Policy.

 

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	(8)	Compensation Committee. The Recipient hereby agrees that (a) any
change, interpretation, determination or modification of this Agreement by the Compensation Committee shall be final and conclusive
for all purposes and on all persons including the Company and the Recipient; provided, however, that with respect to any amendment
or modification of the Plan which affects the Award of Shares made hereby, the Compensation Committee shall have determined that
such amendment or modification is in the best interests of the Recipient of such Award; and (b) this Agreement and the Award shall
not affect in any way the right of the Company or the Employer to terminate or change the employment of the Recipient.

 

	(9)	Prohibited Activities. In the event Recipient engages in a “Prohibited Activity” (as defined below),
at any time during the term of this Agreement, or within one year after termination of the Recipient’s employment from the
Company and/or the Employer, or within one year after the Release Date, whichever occurs latest, the Shares shall be forfeited
and, if applicable, any profit or gain associated with the Shares shall be forfeited and repaid to the Company.

 

Prohibited Activities are:

 

(a)                
Non-Disparagement – making any statement, written or verbal, in any forum or
media, or taking any action in disparagement of the Company, the Employer and/or any Affiliate thereof, including but not limited
to negative references to the Company or its products, services, corporate policies, or current or former officers or employees,
customers, suppliers, or business partners or associates;

 

(b)                
No Publicity – publishing any opinion, fact, or material, delivering any lecture
or address, participating in the making of any film, radio broadcast or television transmission, or communicating with any representative
of the media relating to confidential matters regarding the business or affairs of the Company, the Employer and/or any Affiliate
which the Recipient was involved with during the Recipient’s employment;

 

(c)                
Non-Disclosure of Trade Secrets – failure to hold in confidence all Trade Secrets
of the Company, the Employer and/or any any Affiliate that came into the Recipient’s knowledge during the Recipient’s
employment by the Company, the Employer or any Affiliate, or disclosing, publishing, or making use of at any time such Trade Secrets,
where the term "Trade Secret" means any technical or non-technical data, formula, pattern, compilation, program, device,
method, technique, drawing, process, financial data, financial plan, product plan, list of actual or potential customers or suppliers
or other information similar to any of the foregoing, which (i) derives economic value, actual or potential, from not being generally
known to and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure
or use, and (ii) is the subject of efforts that are reasonable under the circumstances to maintain its secrecy;

 

(d)          Non-Disclosure of Confidential Information – failure to hold in confidence
all Confidential Information of the Company, the Employer and/or any Affiliate that came into the Recipient’s knowledge during
the Recipient’s employment by the Company, the Employer or any Affiliate, or disclosing, publishing, or making use of such
Confidential Information, where the term "Confidential Information" means any data or information, other than Trade Secrets,
that is valuable to the Company and not generally known to the public or to competitors of the Company;

 

(e)                
Return of Materials – failure of the Recipient, in the event of the Recipient’s
termination of employment for any reason, promptly to deliver to the Company all memoranda, notes, records, manuals or other documents,
including all copies of such materials and all documentation prepared or produced in connection therewith, containing Trade Secrets
or Confidential Information regarding the Company's business, whether made or compiled by Recipient or furnished to the Recipient
by virtue of the Recipient’s employment with the Company, the Employer or any Affiliate, or failure promptly to deliver
to the Company all vehicles, computers, credit cards, telephones, handheld electronic devices, office equipment, and other property
furnished to the Recipient by virtue of the Recipient’s employment with the Company, the Employer or any Affiliate;

 

(f)                 
Non-Compete – rendering services for any organization which, or engaging directly
or indirectly in any business which, in the sole judgment of the Compensation Committee or the Chief Executive Officer of the
Company or any senior officer designated by the Compensation Committee, is or becomes competitive with the Company;

 

(g)                
Non-Solicitation – soliciting or attempting to solicit for employment for or
on behalf of any corporation, partnership, or other business entity any employee of the Company with whom Recipient had professional
interaction during the last twelve months of the Recipient’s employment with the Company, the Employer or any Affiliate;
or

 

(h)                
Violation of Company Policies – violating any written policies of the Company
or the Employer applicable to Recipient, including without limitation the Company’s insider trading policy.

 

    	 	4	 

     

    

 

	(10)	Modification of Agreement. If any of the terms of this Agreement may in the opinion of the Company conflict or
be inconsistent with any applicable law or regulation of any governmental agency having jurisdiction, the Company reserves the
right to modify this Agreement to be consistent with applicable laws or regulations.

 

	(11)	Data Privacy. The Recipient hereby explicitly and unambiguously
consents to the collection, use and transfer, in electronic or other form, of the Recipient’s personal data as described
in this Agreement and any other Award materials by and among, as applicable, the Employer, the Company and its Affiliates for the
exclusive purpose of implementing, administering and managing the Recipient’s participation in the Plan.

 

		The Recipient understands that the Employer, the Company and any Affiliate may hold certain personal information about the
Recipient, including but not limited to his or her name, home address, telephone number, date of birth, social security number
or other identification number, salary, nationality, job title, any shares of stock or directorships held in the Company and details
of all Awards or any other entitlements to shares of stock awarded, cancelled, vested, unvested, or outstanding in the Recipient’s
favor (“Data”), for the exclusive purpose of implementing, administering or managing the Plan. Certain Data may also
constitute “sensitive personal data” within the meaning of applicable local law. Such Data includes, but is not limited
to, the information provided above and any changes thereto and other appropriate personal and financial data about the Recipient.
The Recipient hereby provides explicit consent to the Company, the Employer and any Affiliate to process any such Data.

 

The Recipient understands that Data
will be transferred to Merrill Lynch, or such other stock plan service provider as may be selected by the Company in the future,
which is assisting the Company with the implementation, administration and management of the Plan. The Recipient understands that
the recipients of the Data may be located in the United States or elsewhere, and that the recipients’ country (e.g., the
United States) may have different data privacy laws and protections than the Recipient’s country. The Recipient understands
that if he or she resides outside the United States, he or she may request a list with the names and addresses of any potential
recipients of the Data by contacting his or her local human resources representative. The Recipient authorizes the Company, Merrill
Lynch and any other possible recipients which may assist the Company (presently or in the future) with implementing, administering
and managing the Plan to receive, possess, use, retain and transfer the Data, in electronic or other form, for the sole purpose
of implementing, administering and managing his or her participation in the Plan. The Recipient understands that Data will be held
only as long as is necessary to implement, administer and manage the Recipient’s participation in the Plan. The Recipient
understands if he or she resides outside the United States, he or she may, at any time, view Data, request additional information
about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in
any case without cost, by contacting in writing his or her local human resources representative. Further, the Recipient understands
that he or she is providing the consents herein on a purely voluntary basis. If the Recipient does not consent, or if the Recipient
later seeks to revoke his or her consent, his or her employment status or service and career with the Employer will not be adversely
affected; the only adverse consequence of refusing or withdrawing the Recipient's consent is that the Company would not be able
to grant the Recipient Awards or other equity awards or administer or maintain such awards. Therefore, the Recipient understands
that refusing or withdrawing his or her consent may affect the Recipient’s ability to participate in the Plan. For more information
on the consequences of the Recipient's refusal to consent or withdrawal of consent, the Recipient understands that he or she may
contact his or her local human resources representative.

 

	(12)	Nature of Award. In accepting the Award, the Recipient acknowledges, understands and agrees that:

 

(a)      the Plan is established voluntarily by the Company,
it is discretionary in nature and the Company can amend, modify, suspend, cancel or terminate it at any time, to the extent permitted
under the Plan;

 

(b)      this Award and any other awards under the Plan are
voluntary and occasional and do not create any contractual or other right to receive future awards or benefits in lieu of any awards,
even if similar awards have been granted repeatedly in the past;

 

(c)      all determinations with respect to any future awards,
including, but not limited to, the times when awards are made, the number of Shares, and other conditions attached to the awards,
will be at the sole discretion of the Company and/or the Compensation Committee;

 

(d)      participation in this Plan or program is voluntary;

 

(e)      this Award and the underlying Shares, and any income
derived therefrom are not paid in lieu of and are not intended to replace any pension rights or compensation and not part of normal
or expected compensation or salary for any purposes, including, but not limited to, calculating any termination, severance, resignation,
redundancy, dismissal, end of service payments, bonuses, long-service awards, life or accident insurance benefits, pension or retirement
or welfare benefits or similar payments;

 

    	 	5	 

     

    

(f)      for purposes of the Award, the Recipient’s employment
or service relationship will be considered terminated as of the date the Recipient is no longer actively providing services to
the Company or any Affiliate (regardless of the reason for such termination and whether or not later to be found invalid or in
breach of employment laws in the jurisdiction where the Recipient is employed or the terms of the Recipient’s employment
agreement, if any), and unless otherwise expressly provided in this Agreement or determined by the Company, the Recipient’s
right to vest in the Award under the Plan, if any, will terminate as of such date and will not be extended by any notice period
(e.g., the Recipient’s period of service would not include any contractual notice period or any period of “garden
leave” or similar period mandated under employment laws in the jurisdiction where the Recipient is employed or the terms
of the Recipient’s employment agreement, if any); the Committee shall have the exclusive discretion to determine when the
Recipient is no longer actively providing services for purposes of the Award (including whether the Recipient may still be considered
to be providing services while on a leave of absence);

 

(g)      the future value of the underlying Shares is unknown,
indeterminable and cannot be predicted with certainty;

 

(h)      no claim or entitlement to compensation or damages
shall arise from forfeiture of the Award resulting from the termination of the Recipient’s employment or other service relationship
(for any reason whatsoever whether or not later found to be invalid or in breach of employment laws in the jurisdiction where the
Recipient is employed or the terms of the Recipient’s employment agreement, if any), and in consideration of the grant of
the Award to which the Recipient is otherwise not entitled, the Recipient irrevocably agrees never to institute any claim
against the Company, the Employer or any Affiliate; if, notwithstanding the foregoing, any such claim is allowed by a court
of competent jurisdiction, then, by participating in the Plan, the Recipient shall be deemed irrevocably to have agreed not to
pursue such claim and agrees to execute any and all documents necessary to request dismissal or withdrawal of such claim; and

 

(i)      the Award and the Recipient’s participation
in the Plan shall not create a right to employment or be interpreted as forming an employment or services contract with the Company,
the Employer or any Affiliate and shall not interfere with the ability of the Company, the Employer or any Affiliate, as applicable,
to terminate the Recipient’s employment or service relationship (if any); and

 

(j)      if the Recipient is providing services outside the
United States, the Recipient acknowledges and agrees that neither the Company, the Employer nor any Affiliate shall be liable
for any foreign exchange rate fluctuation between the Recipient’s local currency and the United States Dollar that may affect
the value of the Award or of any amounts due to the Recipient pursuant to the settlement of the Award or the subsequent sale of
any Shares acquired upon settlement.

 

	(13)	No Advice Regarding Grant. The Company is not providing any tax, legal or financial advice, nor is the Company
making any recommendations regarding the Recipient’s participation in the Plan, or the Recipient’s acquisition or sale
of the underlying Shares. The Recipient is hereby advised to consult with his or her own personal tax, legal and financial advisors
regarding his or her participation in the Plan before taking any action related to the Plan.

 

	(14)	Entire Agreement; Severability. The Plan and this Agreement set forth the entire understanding between the Recipient,
the Employer, the Company, and any Affiliate regarding the acquisition of the Shares and supersedes all prior oral and written
agreements pertaining to this Award. If all or any part or application of the provisions of this Agreement are held or determined
to be invalid or unenforceable for any reason whatsoever by a court of competent jurisdiction in an action between Recipient and
the Company, each and all of the other provisions of this Agreement shall remain in full force and effect.

 

	(15)	Governing Law and Venue. This Award and this Agreement has been made in and shall be governed by, construed under
and in accordance with the laws of the State of Delaware, United States of America, without regard to the conflict of law provisions,
as provided in the Plan. Any and all disputes relating to, concerning or arising from this Agreement, or relating to, concerning
or arising from the relationship between the parties evidenced by the Award or this Agreement, shall be brought and heard exclusively
in the United States District Court for the District of Delaware or the Delaware Superior Court, New Castle County. Each of the
parties hereby represents and agrees that such party is subject to the personal jurisdiction of said courts; hereby irrevocably
consents to the jurisdiction of such courts in any legal or equitable proceedings related to, concerning or arising from such dispute,
and waives, to the fullest extent permitted by law, any objection which such party may now or hereafter have that the laying of
the venue of any legal or equitable proceedings related to, concerning or arising from such dispute which is brought in such courts
is improper or that such proceedings have been brought in an inconvenient forum.

 

	(16)	Compliance with Law. Notwithstanding any other provision of the Plan or this Agreement, unless there is an available
exemption from any registration, qualification or other legal requirement applicable to the Shares, the Company shall not be required
to deliver any Shares issuable upon settlement of the Award prior to the completion of any registration or qualification of the
Shares under any local, state, federal or foreign securities or exchange control law or under rulings or regulations of the
U.S. Securities and Exchange Commission (“SEC”) or of any other governmental regulatory body, or prior to obtaining
any approval or other clearance from any local, state, federal or foreign governmental agency, which registration, qualification
or approval the Company shall, in its absolute discretion, deem necessary or advisable. The Recipient understands that the Company
is under no obligation to register or qualify the Shares with the SEC or any state or foreign securities commission or to seek
approval or clearance from any governmental authority for the issuance or sale of the Shares. Further, the Recipient agrees that
the Company shall have unilateral authority to amend the Plan and the Agreement without the Recipient’s consent to
the extent necessary to comply with securities or other laws applicable to issuance of Shares.

 

    	 	6	 

     

    

 

	(17)	Language. If the Recipient has received this Agreement or any other document related to the Plan translated into
a language other than English and if the meaning of the translated version is different than the English version, the English version
will control.

 

	(18)	Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide to deliver any documents
related to current or future participation in the Plan by electronic means. The Recipient hereby consents to receive such documents
by electronic delivery and agrees to participate in the Plan through an on-line or electronic system established and maintained
by the Company or a third party designated by the Company.

 

	(19)	Appendix A. The Award shall be subject to any special terms and conditions for the Recipient’s country
set forth in Appendix A. Moreover, if the Recipient relocates to one of the countries included in Appendix A, the special terms
and conditions for such country will apply to the Recipient, to the extent the Company determines that the application of such
terms and conditions is necessary or advisable for legal or administrative reasons. Appendix A constitutes part of this Agreement.

 

	(20)	Imposition of Other Requirements. The Company reserves the right to impose other requirements on the Recipient’s
participation in the Plan, on the Award and on any Shares acquired under the Plan, to the extent the Company determines it is necessary
or advisable for legal or administrative reasons, and to require the Recipient to sign any additional agreements or undertakings
that may be necessary to accomplish the foregoing.

 

	(21)	Waiver. The Recipient acknowledges that a waiver by the Company of breach of any provision of this Agreement
shall not operate or be construed as a waiver of any other provision of this Agreement, or of any subsequent breach by the Recipient
or any other Recipient.

 

	(22)	Insider Trading Restrictions/Market Abuse Laws. The Recipient acknowledges that, depending on the Recipient’s
country of residence, the Recipient may be subject to insider trading restrictions and/or market abuse laws, which may affect the
Recipient’s ability to acquire or sell shares of Common Stock or rights to shares of Common Stock (e.g., Awards) under
the Plan during such times as the Recipient is considered to have “inside information” regarding the Company (as defined
by the laws in the Recipient’s country). Any restrictions under these laws or regulations are separate from and in addition
to any restrictions that may be imposed under the Company’s insider trading policy. The Recipient acknowledges that it is
his or her responsibility to comply with any applicable restrictions, and the Recipient is advised to speak to his or her personal
advisor on this matter.

 

	 	THE COCA-COLA COMPANY	 
	 	 	 
	 	 	 
	 	 	 
	 	Authorized Signature	 

 

Using the Merrill Lynch voice response system or other
available means, the Recipient must accept the above Award in accordance with and subject to the terms and conditions of this Agreement
and the Plan, acknowledge that he or she has read this Agreement and the Plan, and agrees to be bound by this Agreement, the Plan
and the actions of the Committee. If he or she does not do so prior to [Date], then the Company may declare the Award null and
void at any time. Also, in the unfortunate event that death occurs before this Agreement has been accepted, this Award will be
voided, which means the Award will terminate automatically and cannot be transferred to the Recipient's heirs pursuant to the Recipient's
will or the laws of descent and distribution.

 

    	 	7	 

     

    

Power of Attorney

 

This Power of Attorney shall not apply if the Recipient becomes
an Executive Officer or a Reporting Officer under Section 16 of the Securities Exchange Act of 1934.

 

The Recipient, by electing to participate in the Plan and
accepting the Agreement, does hereby appoint as attorney-in-fact, the Company, through its duly appointed representative, as the
Recipient’s true and lawful representative, with full power and authority to do the following:

 

		(i)	To direct, instruct, authorize and prepare and execute any document necessary to have Merrill Lynch (or any successor broker
designated by the Company) sell on the Recipient’s behalf a set percentage of the Shares the Recipient receives at vesting
as may be needed to cover Tax-Related Items due at vesting;

 

		(ii)	To direct, instruct, authorize and prepare and execute any document necessary to have the Company and/or Merrill Lynch (or
any successor broker designated by the Company) use the Recipient’s bank and/or brokerage account information and any other
information as required to effectuate the sale of Shares the Recipient receives at vesting as may be needed to cover Tax-Related
Items due at vesting; 

 

		(iii)	To take any additional action that may be necessary or appropriate for implementation of the Plan with any competent taxing
authority; and

 

		(iv)	To constitute and appoint, in the Recipient’s place and stead, and as the Recipient’s substitute, one representative
or more, with power of revocation.

 

The authority set forth herein to sell Shares shall not be
valid if the Recipient or the Company notifies Merrill Lynch that the Recipient is unable to trade in Company securities due to
trading restrictions pursuant to the Company’s Insider Trading Policy or applicable securities laws.  The Recipient
hereby ratifies and confirms as his or her own act and deed all that such representative may do or cause to be done by virtue of
this instrument.

 

    	 	8	 

     

    
2014 Equity Plan – Restricted Stock
Unit Agreement (2016)

 

 

APPENDIX A

 

THE COCA-COLA COMPANY

2014 EQUITY PLAN

RESTRICTED STOCK UNIT AGREEMENT

 

Terms and Conditions

 

This Appendix includes additional terms and conditions
that govern the Award granted to the Recipient under the Plan if the Recipient works in one of the countries listed below. If the
Recipient is a citizen or resident of a country other than the one in which the Recipient is currently working, is considered a
resident of another country for local law purposes or if the Recipient transfers employment and/or residency between countries
after the Award Date, the Company will, in its discretion, determine the extent to which the terms and conditions herein will be
applicable to the Recipient.

 

Certain capitalized terms used but not defined in this
Appendix have the same meanings set forth in the Plan and/or the Agreement, as applicable.

 

Notifications

 

This Appendix also includes information regarding securities,
exchange control and certain other tax or legal issues of which the Recipient should be aware with respect to the Recipient's participation
in the Plan. The information is based on the securities, exchange control and other laws in effect in the respective countries
as of December 2015. Such laws are often complex and change frequently. As a result, the Company strongly recommends that the Recipient
not rely on the information in this Appendix as the only source of information relating to the consequences of the Recipient's
participation in the Plan because the information may be out of date when the Award vests, Shares are issued to the Recipient and/or
the Recipient sells Shares acquired under the Plan.

 

In addition, the information contained herein is general
in nature and may not apply to the Recipient's particular situation and the Company is not in a position to assure the Recipient
of a particular result. Accordingly, the Recipient is advised to seek appropriate professional advice as to how the relevant laws
in the Recipient's country may apply to his or her situation. Furthermore, additional privacy laws may apply in the Recipient’s
country.

 

Finally, if the Recipient is a citizen or resident of
a country other than the one in which the Recipient is currently working, is considered a resident of another country for local
law purposes or if the Recipient transfers employment and/or residency between countries after the Award Date, the information
contained herein may not be applicable to the Recipient in the same manner.

 

ARGENTINA

 

Notifications

 

Securities Law Information

 

The Recipient understands that neither the Awards nor the
Shares underlying the Awards are publicly offered or listed on any stock exchange in Argentina. Therefore the offer of the Awards
does not constitute a public offering as defined under Argentine law. The offer is private and not subject to the supervision of
any Argentine governmental authority.

 

Exchange Control Information

 

If the Recipient transfers proceeds from the sale of Shares
and any cash dividends into Argentina, the Recipient may be subject to certain restrictions. If the transfer of funds received
in connection with the Award into Argentina is made within 10 days of receipt, 30% of the amount transferred into Argentina may
be subject to mandatory deposit in a non-interest bearing account for a holding period of 365 days. The Argentine bank handling
the transaction may request certain documentation in connection with the request to transfer sale proceeds into Argentina (e.g.,
evidence of the sale, proof of the source of the funds used to purchase the Shares, etc.). If the bank determines that the 10-day
rule or any other rule or regulation promulgated by the Argentine Central Bank has not been satisfied, it will require that 30%
of the proceeds be placed in a non-interest bearing deposit account for a holding period of 365 days.

 

    	 	A-1	 

     

    

The Recipient is solely responsible for complying with the
exchange control rules that may apply to the Recipient in connection with his or her participation in the Plan and/or transfer
of proceeds from the sale of Shares or receipt of dividends acquired under the Plan into Argentina. Prior to transferring funds
into Argentina, the Recipient should consult his or her local bank and/or exchange control advisor to confirm what will be required
by the bank because interpretations of the applicable Central Bank regulations vary by bank and exchange control rules and regulations
are subject to change without notice.

 

Foreign Asset/Account Reporting Information

 

Argentinian residents must report any Shares acquired under
the Plan and held by the resident on December 31 of each year on their annual tax return for that year.

 

AUSTRALIA

 

Terms and Conditions

 

Australian Offer Document

 

The offer of the Award is intended to comply with the provisions
of the Corporations Act 2001, ASIC Regulatory Guide 49 and ASIC Class Order CO 14/1000. Additional details are set forth in the
Offer Document for the offer of the Award to Australian resident employees, which will be provided to the Recipient with the Agreement.

 

Notifications

 

Securities Law Information

 

The Recipient understands that if he or she acquires Shares
upon vesting/settlement of the Award and subsequently offers such Shares for sale to a person or entity resident in Australia,
such an offer may be subject to disclosure requirements under Australian law. The Recipient should obtain legal advice regarding
applicable disclosure requirements prior to making any such offer.

 

Exchange Control Information

 

Australian residents must report inbound and/or outbound
cash transactions exceeding A$10,000 and inbound and/or outbound international fund transfers of any value if the transfers do
not involve an Australian bank.

 

AUSTRIA

 

Notifications

 

Securities Disclaimer

The participation in the Plan is exempt or excluded
from the requirement to publish a prospectus under the EU Prospectus Directive as implemented in Austria.

 

Consumer Protection Information

 

The Recipient may be entitled to revoke the Agreement
on the basis of the Austrian Consumer Protection Act (the “Act”) under the conditions listed below, if the Act is considered
to be applicable to the Agreement and the Plan:

 

		(i)	The revocation must be made within one week after the acceptance of the Agreement.

 

		(ii)	The revocation must be in written form to be valid. It is sufficient if the Recipient returns
the Agreement to the Company or the Company’s representative with language that can be understood as the Recipient’s
refusal to conclude or honor the Agreement, provided the revocation is sent within the period discussed above.

 

    	 	A-2	 

     

    

Exchange Control Information

 

If the Recipient holds securities (including Shares
acquired under the Plan) or cash (including proceeds from the sale of Shares and any cash dividends) outside of Austria (even if
the Recipient holds them outside of Austria at a branch of an Austrian bank), the Recipient may be required to report certain information
to the Austrian National Bank if certain thresholds are exceeded.

 

Specifically, if the Recipient is an Austrian resident
and holds securities outside of Austria, reporting requirements will apply if the value of such securities meets or exceeds (i)
€30,000,000 as of the end of any calendar quarter, or (ii) €5,000,000 as of December 31. Further, if the Recipient holds
cash in accounts outside of Austria, monthly reporting requirements will apply if the aggregate transaction volume of such cash
accounts meets or exceeds €3,000,000.

 

BAHRAIN

 

There are no country specific provisions.

 

BELGIUM

 

Notifications

 

Securities Disclaimer

The participation in the Plan is exempt or excluded
from the requirement to publish a prospectus under the EU Prospectus Directive as implemented in Belgium.

 

Foreign Asset/Account Reporting Information

 

The Recipient is required to report any taxable income attributable
to the Award on his or her annual tax return. Additionally, Belgian residents are required to report any security or bank accounts
(including brokerage accounts) maintained outside of Belgium on their annual tax return. In a separate report, they will be required
to provide the National Bank of Belgium with certain details regarding such foreign accounts.

 

BRAZIL

 

Terms and Conditions

 

Nature of Grant

 

The following provision supplements Section 12 of the Agreement:

 

The Recipient agrees that (i) he or she is making an investment
decision, (ii) the Shares will be issued to him or her only if the vesting conditions are met and any necessary services are rendered
by the Recipient over the vesting period, and (iii) the value of the underlying Shares is not fixed and may increase or decrease
in value over the vesting period without compensation to the Recipient.

 

Compliance with Law

 

By accepting the Award, the Recipient acknowledges his
or her agreement to comply with applicable Brazilian laws and to pay any and all applicable taxes associated with the vesting/settlement
of the Award and issuance and/or sale of Shares acquired under the Plan and the receipt of any dividends.

 

    	 	A-3	 

     

    

Notifications

 

Foreign Asset/Account Reporting Information

 

If the Recipient is resident or domiciled in Brazil,
the Recipient will be required to submit an annual declaration of assets and rights held outside of Brazil to the Central Bank
of Brazil if the aggregate value of such assets and rights is equal to or greater than US$100,000 as of December 31. Assets and
rights that must be reported include Shares acquired under the Plan.

 

CANADA

 

Terms and Conditions

 

Termination of Employment

 

The following provision supplements Section 12(f) of the
Agreement:

 

In the event of the Recipient’s termination of employment
for any reason (whether or not later found invalid or in breach of local employment laws or the terms of the Recipient’s
employment agreement, if any), any unvested portion of the Award shall be immediately forfeited without consideration.  For
purposes of the preceding sentence, the Recipient’s right to vest in the Award will terminate effective as of the earlier
of the following dates: (i) the date on which the Recipient’s employment is terminated; (ii) the date the Recipient receives
written notice of termination of employment from the Company or one of the Affiliates; or (iii) the date the Recipient is no longer
actively providing services to the Company or one of the Affiliates.  The right to vest in and exercise the Award (as discussed
above) will not be extended by any notice period (e.g., active service would not include any contractual notice period or
any period of “garden leave” or similar period mandated under Canadian laws or the terms of the Recipient’s employment
or service agreement, if any). The Committee shall have the exclusive discretion to determine when the Recipient is no longer actively
providing services for purposes of the Recipient’s Award (including whether the Recipient may still be considered to be providing
services while on a leave of absence).

 

Data Privacy

 

The following provision supplements Section 11 of the Agreement:

 

The Recipient hereby authorizes the Company and the Company’s
representatives to discuss with and obtain all relevant information from all personnel, professional or not, involved in the administration
and operation of the Plan. The Recipient further authorizes the Company, any Affiliates and any stock plan service provider that
may be selected by the Company to assist with the Plan to disclose and discuss the Plan with their respective advisors. The Recipient
further authorizes the Company and any Affiliates to record such information and to keep such information in the Recipient’s
employee file.

 

Language Consent

 

The following terms and conditions apply to the Recipients
resident in Quebec:

 

The parties acknowledge that it is their express wish that
the Agreement, as well as all documents, notices, and legal proceedings entered into, given or instituted pursuant hereto or relating
directly or indirectly hereto, be drawn up in English.

 

Consentement relatif à la langue utilisée

 

Les parties reconnaissent avoir exigé que cette
convention («Agreement») soit rédigée en anglais, ainsi que tous les documents, avis et procédures
judiciaires, éxécutés, donnés ou intentés en vertu de, ou liés directement ou indirectement
à la présente.

 

    	 	A-4	 

     

    

Notifications

 

Securities Law Information

 

The Recipient is permitted to sell Shares acquired through
the Plan through the designated broker appointed by the Company, provided the resale of Shares acquired under the Plan takes place
outside of Canada through the facilities of a stock exchange on which the Shares are listed (i.e., New York Stock Exchange).

 

Foreign Asset/Account Reporting Information

 

Canadian residents are required to report any foreign property
(e.g., Shares acquired under the Plan and possibly unvested Awards) on form T1135 (Foreign Income Verification Statement)
if the total cost of their foreign property exceeds C$100,000 at any time in the year. It is the Recipient’s responsibility
to comply with these reporting obligations, and the Recipient should consult his or her own personal tax advisor in this regard.

 

CHILE

 

Notifications

 

Securities Law Information

 

Neither the Company nor Shares are registered with the Chilean
Registry of Securities or under the control of the Chilean Superintendence of Securities.

 

Exchange Control Information

 

It is responsibility of the Recipient to make sure
that the Recipient complies with exchange control requirements in Chile when the value of Recipient’s share transaction is
in excess of US$10,000.

If the aggregate value of the Shares received under
the Award exceeds US$10,000, the Recipient must sign Annex 1 of the Manual of Chapter XII of the Foreign Exchange Regulations and
file it directly with the Central Bank within 10 days of the settlement of the Awards.

The Recipient is not required to repatriate funds
obtained from the sale of the Shares. However, if the Recipient decides to repatriate such funds, the Recipient must do so through
the Formal Exchange Market if the amount of the funds exceeds US$10,000. In such case, the Recipient must report the payment to
a commercial bank or registered foreign exchange office receiving the funds.

If Recipient’s aggregate investments held outside
of Chile exceeds US$5,000,000 (including the investments made under the Plan), the Recipient must report the investments annually
to the Central Bank. Annex 3.1 of Chapter XII of the Foreign Exchange Regulations must be used to file this report.

Please note that exchange control regulations in Chile
are subject to change. The Recipient should consult with his or her personal legal advisor regarding any exchange control obligations
that the Recipient may have in connection with the Award.

Annual Tax Reporting Obligation

 

The Chilean Internal Revenue (the “CIRS”)
requires all taxpayers to provide information annually regarding: (i) the taxes paid abroad which they will use as a credit against
Chilean income taxes, and (ii) the results of foreign investments. These annual reporting obligations must be complied with by
submitting a sworn statement setting forth this information before March 15 of each year. The forms to be used to submit the sworn
statement are Tax Form 1853 “Annual Sworn Statement Regarding Credits for Taxes Paid Abroad” and Tax Form 1851 “Annual
Sworn Statement Regarding Investments Held Abroad.” If the Recipient is not a Chilean citizen and has been a resident in
Chile for less than three years, the Recipient is exempt from the requirement to file Tax Form 1853. These statements must be submitted
electronically through the CIRS website at http://www.sii.cl.

 

    	 	A-5	 

     

    

CHINA

 

Terms and Conditions 

 

The following provisions govern the Recipient’s
participation in the Plan if the Recipient is a national or passport holder of the People’s Republic of China (“PRC”)
resident and working in mainland China:

 

Separation from the Company

 

Notwithstanding any provisions in the Agreement to the contrary,
the following provisions apply in the event of separation from the Company or an Affiliate in China due to Disability and Retirement:

 

Awards held less than 12 months from the date of Award are
forfeited.

 

For Awards held at least 12 months, the Award will immediately
vest and the Recipient shall be paid a cash amount equal to the value of the Shares. The value shall be determined based on the
closing price of the Shares on the date of the Recipient’s Disability or Retirement, as applicable, and shall be paid within
90 days of the Recipient’s Disability or Retirement, as applicable.

 

The following provision of Section 3(a) of the Agreement
is replaced with the following:

 

	Employment with the Company or a Subsidiary terminates  after attaining age 55 and completing 10 Years of Service	Award held at least 12 months becomes immediately vested. Award held less than 12 months is forfeited.	Shares will be released within 90 days after the date of termination.  If required by Section 409A of the Internal Revenue Code, Shares may not be released to specified employees until at least six months following termination of employment.

 

Exchange Control Requirements

 

By accepting the Award, the Recipient acknowledges that he
or she understands and agrees that, due to exchange control requirements in China, the Recipient is not permitted to transfer any
Shares acquired under the Plan out of the Recipient’s account established with the Company’s designated broker. In
addition, as a condition of participation, the Recipient must execute the Power of Attorney below and agree to certain special
terms and conditions as set forth below to comply with exchange control requirements in China and allow the Plan to continue in
operation. Any and all Awards granted to the Recipient (including any and all outstanding Awards previously granted, any Shares
issued to the Recipient in respect thereof, as well as current and future grants of Awards issued to the Recipient hereafter) are
subject to local exchange control requirements, including the following special terms and conditions:

 

(i)            
Notwithstanding any terms or conditions of the Plan and the Agreement to the contrary, the
Recipient must sell all of the Shares received through the vesting of any Award within six (6) months following the Recipient’s
termination of employment for any reason, or within any other timeframe as may be required by the State Administration of Foreign
Exchange (“SAFE”), Shanghai branch. In no event shall the Recipient be permitted to hold Shares later than six (6)
months following the date of the Recipient’s termination of employment for any reason, and the Company will authorize Merrill
Lynch (or any successor broker designated by the Company) to sell the Shares (on the Recipient’s behalf and pursuant to the
authorization without further consent) should the Shares remain in the Recipient’s account more than six (6) months following
the Recipient’s termination of employment. In addition, upon vesting of the Award, a set percentage of the Shares issued
at vesting may need to be sold in order to cover any Tax-Related Items due at vesting.

 

The Recipient must authorize Merrill Lynch, Pierce, Fenner
& Smith Incorporated (“Merrill Lynch”) or any successor broker designated by the Company to sell such Shares as
described above (on the Recipient’s behalf and pursuant to this authorization) and provide to the Company and/or Merrill
Lynch any documentation or evidence necessary to effect such sale of the Shares. Neither the Company nor Merrill Lynch (or any
successor broker designated by the Company) are under any obligation to arrange for such sale of the Shares at any particular price
or on any specific date or time. Further, the Company shall have the exclusive discretion to determine when the Recipient is no
longer actively providing service for purposes of the Award;

 

    	 	A-6	 

     

    

(ii)          
The Recipient must repatriate the cash proceeds from the sale of the Shares issued upon the
vesting of the Award to China. Such repatriation of the cash proceeds may need to be effectuated through a special exchange control
account established by the Company, the Employer or any other Affiliate in China, and any proceeds from the sale of any Shares
the Recipient acquires may be transferred to such special account prior to being delivered to the Recipient (less any Tax-Related
Items and any brokerage fees or commissions);

 

(iii)         
The Company will deliver the proceeds of the sale of Shares (less any Tax Related Items and
any brokerage fees or commissions) to the Recipient as soon as possible, but there may be delays in distributing the funds to the
Recipient due to exchange control requirements in China. Proceeds may be paid to the Recipient in U.S. dollars or local currency
at the Company’s discretion. If the proceeds are paid to the Recipient in U.S. dollars, the Recipient will be required to
set up a U.S. dollar bank account in China so that the proceeds may be deposited into this account. If the proceeds are paid to
the Recipient in local currency, the Company is under no obligation to secure any particular exchange conversion rate and the Company
may face delays in converting the proceeds to local currency due to exchange control restrictions. The Recipient acknowledges and
agrees that he or she bears the risk of any currency conversion rate fluctuation between the date that the Shares or any dividends
paid on the Shares are sold, as applicable, and the date of conversion of the cash proceeds to local currency.

 

(iv)        
The Recipient further agree to comply with any other requirements that may be imposed by the
Company in the future in order to facilitate compliance with exchange control requirements in China.

 

Power of Attorney

 

The Recipient is a PRC national employee working for the
Company, the Employer or another Related company in China and, by electing to participate in the Plan and accepting the Agreement
(including this Appendix), the Recipient does hereby appoint as attorney-in-fact, the Company, through its duly appointed representative,
as the Recipient’s true and lawful representative, with full power and authority to do the following:

 

(i)           
To direct, instruct, authorize and prepare and execute any document necessary to have Merrill
Lynch (or any successor broker designated by the Company) sell on the Recipient’s behalf a set percentage of the Shares the
Recipient receives at vesting as may be needed to cover Tax-Related Items due at vesting;

 

(ii)         
To direct, instruct, authorize and prepare and execute any document necessary to have Merrill
Lynch (or any successor broker designated by the Company) sell on the Recipient’s behalf any and all Shares the Recipient
receives through the vesting of the Recipient’s Award, which are still being held in his or her brokerage account as of the
date which is six (6) months following the date of his or her termination of employment;

 

(iii)       
To direct, instruct, authorize and prepare and execute any document necessary to have Merrill
Lynch (or any successor broker designated by the Company) repatriate the proceeds of the sale of the Recipient’s Shares through
a special exchange control account in China established by the Company, the Employer or any other Affiliate;

 

(iv)        
To direct, instruct, authorize and prepare and execute any document necessary to have the
Company and/or Merrill Lynch (or any successor broker designated by the Company) use the Recipient’s bank and/or brokerage
account information and any other information as required to effectuate the sale of Shares and the repatriation and delivery of
the cash proceeds from such sale; 

 

(v)          
To take any additional action that may be necessary or appropriate for implementation of the
Plan with SAFE and any other competent PRC authority, including but not limited to the transfer of funds through a special exchange
control account in China; and

 

(vi)        
To constitute and appoint, in the Recipient’s place and stead, and as the Recipient’s
substitute, one representative or more, with power of revocation.

 

The Recipient hereby ratifies and confirms as his or her
own act and deed all that such representative may do or cause to be done by virtue of this instrument.

 

    	 	A-7	 

     

    

Notifications

 

Foreign Asset/Account Reporting Information

 

The Recipient may be required to report to SAFE all details
of his or her foreign financial assets and liabilities, as well as details of any economic transactions conducted with non-PRC
residents. Under these rules, the Recipient may be subject to reporting obligations for the Awards, Shares acquired under the Plan,
the receipt of any dividends and the sale of Shares.

 

COSTA RICA

 

There are no country-specific provisions.

 

EGYPT

 

Notifications

 

Exchange Control Information

 

If the Recipient transfers funds into Egypt in connection
with the Award, the Recipient is required to transfer the funds through a registered bank in Egypt.

 

FRANCE

 

Terms and Conditions

 

Awards Not Tax-Qualified

 

The Award is not intended to be a tax-qualified
or tax-preferred award, including without limitation, under under Sections L. 225-197-1 to L. 225-197-6 of the French Commercial
Code.  The recipient is encouraged to consult with a personal tax advisor to understand the tax and social insurance implications
of the Award.

 

Language Consent 

 

By accepting the French Award, the Recipient confirms
having read and understood the documents relating to this grant (the Plan and the Agreement) which were provided in English
language.  The Recipient accepts the terms of those documents accordingly. The Recipient confirms that the Recipient has a
good knowledge of the English language.

 

En acceptant l’Attribution, le Bénéficiaire
confirme avoir lu et compris les documents relatifs à cette attribution (le Plan et ce Contrat) qui ont été
fournis en langue anglaise. Le Bénéficiaire accepte les dispositions de ces documents en connaissance de cause. Etant
précisé que le Titulaire a une bonne maîtrise de la langue anglaise.

 

Notifications

 

Securities Disclaimer

 

The participation in the Plan is exempt or excluded
from the requirement to publish a prospectus under the EU Prospectus Directive as implemented in France.

 

Foreign Asset/Account Information

 

The Recipient may hold Shares acquired upon vesting/settlement
of the Award, any proceeds resulting from the sale of Shares or any dividends paid on such Shares outside of France, provided the
Recipient declares all foreign bank and brokerage accounts (including any accounts that were opened or closed during the tax year)
with  his or her annual income tax return.  Failure to complete this reporting may trigger penalties for the resident. 

 

    	 	A-8	 

     

    

GERMANY

 

Notifications

 

Securities Disclaimer

 

The participation in the Plan is exempt or excluded from the requirement
to publish a prospectus under the EU Prospectus Directive as implemented in Germany.

 

Exchange Control Information

 

Cross-border payments in excess of €12,500 must be reported
monthly to the German Federal Bank (Bundesbank). In the event that the Recipient makes or receives a payment in excess of
this amount, he or she is required to report the payment to Bundesbank electronically using the “General Statistics Reporting
Portal” (“Allgemeines Meldeportal Statistik”) available via Bundesbank’s website (www.bundesbank.de).

 

GREECE

 

Notifications

 

Securities Disclaimer

 

The participation in the Plan is exempt or excluded from
the requirement to publish a prospectus under the EU Prospectus Directive as implemented in Greece.

 

HONG KONG

 

Terms and Conditions

 

Securities Law Notice

 

WARNING: The Award and the Shares underlying the Awards
do not constitute a public offering of securities under Hong Kong law and are available only to employees of the Company or its
Affiliates participating in the Plan. The Recipient should be aware that the contents of the Agreement have not been prepared in
accordance with and are not intended to constitute a “prospectus” for a public offering of securities under the applicable
securities legislation in Hong Kong. Nor have the documents been reviewed by any regulatory authority in Hong Kong. The Agreement
and the Plan are intended only for the personal use of each Recipient and may not be distributed to any other person. The Recipient
is advised to exercise caution in relation to the offer of the Award. If the Recipient is in any doubt about any of the contents
of the Agreement, including this Appendix, or the Plan, the Recipient should obtain independent professional advice.

 

Sale of Shares

 

Any Shares received at vesting are accepted as a personal
investment. In the event that any portion of this Award vests within six months of the Award Date, the Recipient agrees that he
or she will not offer to the public or otherwise dispose of the Shares acquired prior to the six-month anniversary of the Award
Date.

 

Notifications

 

Occupational Retirement Schemes Ordinance Alert

 

The Company specifically intends that neither the Award nor
the Plan will be an occupational retirement scheme for purposes of the Occupational Retirement Schemes Ordinance (“ORSO”).

 

    	 	A-9	 

     

    

INDIA

 

Notifications

 

Exchange Control Information

 

The Recipient must repatriate to India all funds resulting
from the sale of Shares within 90 days and all proceeds from the receipt of any dividends within 180 days. The Recipient will receive
a foreign inward remittance certificate (“FIRC”) from the bank where he or she deposits the foreign currency. The Recipient
should maintain the FIRC as evidence of the repatriation of funds in the event that the Reserve Bank of India or the Employer requests
proof of repatriation.

 

Foreign Asset/Account Reporting Information

 

The Recipient is required to declare in his or her annual
tax return his or her foreign financial assets (including Shares) and any foreign bank accounts. The Recipient understands that
it is the Recipient’s responsibility to comply with this reporting obligation and is advised to confer with a personal tax
advisor in this regard.

 

IRELAND

 

Notifications

 

Director Notification Requirement

 

If the Recipient is a director, shadow director or secretary
of an Irish Affiliate, the Recipient is required to notify such Irish Affiliate in writing within five business days of (i) receiving
or disposing of an interest in the Company (e.g., the Awards, Shares, etc.), (ii) becoming aware of the event giving rise
to the notification requirement, or (iii) becoming a director, shadow director or secretary of an Irish Affiliate if such an interest
exists at the time.  This notification requirement also applies with respect to the interests of a spouse or children under
the age of 18 (whose interests will be attributed to the director, shadow director or secretary, as the case may be).

 

Securities Disclaimer

 

The participation in the Plan is exempt or excluded from the requirement
to publish a prospectus under the EU Prospectus Directive as implemented in Ireland.

 

ITALY

 

Terms and Conditions

 

Data Privacy

 

The following provision replaces Section 11 of the Agreement:

 

The Recipient understands that the Company, the Employer
and any Affiliate may hold certain personal information about him or her, including, but not limited to, the Recipient’s
name, home address and telephone number, date of birth, social insurance or other identification number, salary, nationality, job
title, any Shares or directorships held in the Company or any Affiliate, details of all Awards, or any other entitlement to Shares
awarded, cancelled, exercised, vested, unvested or outstanding in the Recipient’s favor (“Data”), for the exclusive
purpose of implementing, managing and administering the Plan. The Recipient is aware that providing the Company with Data is necessary
for the performance of the Plan and that his or her refusal to provide such Data would make it impossible for the Company to perform
its contractual obligations and may affect the Recipient’s ability to participate in the Plan.

 

The Controller of personal data processing is The Coca-Cola
Company with registered offices at One Coca-Cola Plaza, Atlanta Georgia, 30313, United States of America, and, pursuant to Legislative
Decree no. 196/2003, its representative in Italy is Coca-Cola Italia S.r.l., Edison Park Center, Viale Tommaso Edison 110, 20099
Sesto San Giovanni, Milan, Italy.

 

The Recipient understands that Data may be transferred to
the Company or any of its Affiliates, or to any third parties assisting in the implementation, management and administration of
the Plan, including any transfer required to its designated broker or other third party with whom Shares acquired under the Plan
or cash from the sale of such Shares may be deposited. Furthermore, the recipients that may receive, possess, use, retain, and
transfer such Data may be located in Italy or elsewhere, including outside the European Union, and the recipients’ country
(e.g., the United States) may have different data privacy laws and protections than Italy.

 

    	 	A-10	 

     

    

The processing activity, including transfer of Data abroad,
including outside of the European Economic Area, as herein specified and pursuant to applicable laws and regulations, does not
require the Recipient’s consent thereto as the processing is necessary to performance of contractual obligations related
to implementation, administration, and management of the Plan. The Recipient understands that Data processing related to the purposes
specified above shall take place under automated or non-automated conditions, anonymously when possible, that comply with the purposes
for which Data is collected and with confidentiality and security provisions as set forth by applicable laws and regulations, with
specific reference to Legislative Decree no. 196/2003.

 

The Recipient understands that Data will be held only as
long as is required by law or as necessary to implement, administer and manage the Recipient’s participation in the Plan.
The Recipient understands that, pursuant to Section 7 of the Legislative Decree no. 196/2003, he or she has the right to, including
but not limited to, access, delete, update, correct, or terminate, for legitimate reason, the Data processing. Furthermore, the
Recipient is aware that Data will not be used for direct marketing purposes. In addition, Data provided can be reviewed and questions
or complaints can be addressed by contacting the Recipient’s local human resources representative.

 

Plan Document Acknowledgment

 

In accepting the Award, the Recipient acknowledges that he
or she has received a copy of the Plan and the Agreement and has reviewed the Plan and the Agreement, including this Appendix,
in their entirety and fully understands and accepts all provisions of the Plan and the Agreement, including this Appendix.

 

The Recipient acknowledges that he or she has read and
specifically and expressly approves the following sections of the Agreement: Section (3) Employment Events; Section (7) Responsibility
for Taxes; Section (12) Nature of Award; Section (15) Governing Law and Venue; Section (18) Electronic Delivery and Acceptance;
Section (19) Appendix A; Section (20) Imposition of Other Requirements; and the Data Privacy section above.

 

Notifications

 

Foreign Asset/Account Reporting Information

 

If the Recipient is an Italian resident who, at any time
during the fiscal year, holds foreign financial assets (including cash and Shares) which may generate taxable income in Italy,
the Recipient is required to report these assets on his or her annual tax return for the year during which the assets are held,
or on a special form if no tax return is due. These reporting obligations also apply if the Recipient is the beneficial owner of
foreign financial assets under Italian money laundering provisions.

 

Securities Disclaimer

 

The grant of the Award is exempt from the requirement to publish
a prospectus under the EU Prospectus Directive as implemented in Italy.

 

JAPAN

 

Notifications

 

Foreign Asset/Account Reporting Information

 

Japanese residents holding assets outside of Japan with a
total net fair market value exceeding ¥50,000,000 (as of December 31 each year) are required to comply with annual tax reporting
obligations with respect to such assets. The Recipient is advised to consult with a personal tax advisor to ensure that he or she
is properly complying with applicable reporting requirements.

 

    	 	A-11	 

     

    
KENYA

 

There are no country-specific provisions.

 

MEXICO

 

Terms and Conditions

 

Labor Law Acknowledgment

 

These provisions supplement Section 12 of the Agreement:

 

Modification. By accepting the Award, the Recipient
understands and agrees that any modification of the Plan or the Agreement or its termination shall not constitute a change or impairment
of the terms and conditions of the Recipient’s employment.

 

Policy Statement. The grant of the Award made under
the Plan is unilateral and discretionary and, therefore, the Company reserves the absolute right to amend it and discontinue it
at any time without any liability.

 

The Company with registered offices at One Coca-Cola Plaza,
Atlanta Georgia, 30313, United States of America, is solely responsible for the administration of the Plan and participation in
the Plan and the acquisition of Shares does not, in any way, establish an employment relationship between the Recipient and the
Company since the Recipient is participating in the Plan on a wholly commercial basis and the Recipient’s sole employer is
Servicios Integrados de Administración y Alta Gerencia S. de R.L. de C.V., nor does it establish any rights between the
Recipient and the Employer.

 

Plan Document Acknowledgment

 

By accepting the grant of the Awards, the Recipient acknowledges
that the Recipient has received a copy of the Plan, has reviewed the Plan and the Agreement in their entirety and fully understands
and accepts all provisions of the Plan and the Agreement.

 

In addition, by signing the Agreement, the Recipient further
acknowledges that he or she has read and specifically and expressly approves the terms and conditions in Section 12 of the Agreement
(“Nature of Award,” in which the following is clearly described and established: (i) participation in the Plan does
not constitute an acquired right; (ii) the Plan and participation in the Plan is offered by the Company on a wholly discretionary
basis; (iii) participation in the Plan is voluntary; and (iv) none of the Affiliates or the Company is responsible for any decrease
in the value of the Shares underlying the Award.

 

Finally, the Recipient hereby declares that the Recipient
does not reserve any action or right to bring any claim against the Company for any compensation or damages as a result of the
Recipient’s participation in the Plan and therefore grants a full and broad release to the Employer, the Company and any
Affiliates with respect to any claim that may arise under the Plan.

 

Spanish Translation

 

Términos y Condiciones

 

Reconocimiento de la Ley Laboral aplicable

 

Los presentes lineamientos reemplazarán a la Cláusula
12 del Contrato.

 

Modificación. Al aceptar el Otorgamiento,
el Beneficiario reconoce y entiende que cualquier modificación al Plan o al Contrato o su terminación no serán
considerados como un cambio o disminución en los términos y condiciones de su relación de trabajo.

 

    	 	A-12	 

     

    

Declaración de Política. El
Otorgamiento realizado conforme al Plan es unilateral y discrecional y, por lo tanto, la Compañía se reserva el derecho
absoluto de modificar y discontinuar el mismo en cualquier tiempo, sin responsabilidad alguna.

 

La Compañía, con oficinas registradas ubicadas
enOne Coca Cola Plaza, Atlanta Georgia, 30313, EE.UU., es la única responsable de la administración del Plan y de
la participación en el mismo, y la adquisición de Acciones no establece de forma alguna una relación de trabajo
entre el Beneficiario y la Compañía, ya que su participación en el Plan es completamente comercial, y el único
empleador del Beneficiario es Servicios Integrados de Administración y Alta Gerencia, S. de R.L. de C.V., así
como tampoco establece ningún derecho entre el Beneficiario y el Patrón.

 

Reconocimiento del Documento del Plan. Al
aceptar el Otorgamiento, el Beneficiario reconoce que ha recibido una copia del Plan, que ha revisado el Plan y el Contrato y que
entiende y acepta completamente todas las disposiciones contenidas en el Plan y en el Contrato. 

 

Adicionalmente, al firmar el Contrato, el Beneficiario
reconoce que ha leído y que aprueba específica y expresamente los términos y condiciones contenidos en la
cláusula 12 del Contrato ("Naturaleza del Otorgamiento") en el cual se encuentra claramente descrito y establecido
lo siguiente: (i) la participación en el Plan no constituye un derecho adquirido; (ii) el Plan y la participación
en el mismo es ofrecida por la Compañía de forma enteramente discrecional; (iii) la participación en el Plan
es voluntaria; y (iv) ninguna de las empresas Afiliadas o la Compañía, son responsables por cualquier disminución
en el valor de las Acciones en relación al Otorgamiento. 

 

Finalmente, el Beneficiario manifiesta que no se reserva
ninguna acción o derecho para interponer una demanda en contra de la Compañía por compensación, daño
o perjuicio alguno como resultado de la participación del Beneficiario en el Plan y, en consecuencia, otorga el más
amplio finiquito al Patrón, así como a la Compañía y empresas Afiliadas con respecto a cualquier demanda
que pudiera originarse en virtud del Plan.

 

MOROCCO

 

Notifications

 

Exchange Control Information

 

The Company reserves the right to force the immediate
sale of any Shares to be issued upon vesting and settlement of the Award. If applicable, the Recipient agrees that the Company
is authorized to instruct its designated broker to assist with the mandatory sale of such Shares (on the Recipient’s behalf
pursuant to this authorization) and the Recipient expressly authorizes the Company’s designated broker to complete the sale
of such Shares. The Recipient acknowledges that the Company’s designated broker is under no obligation to arrange for the
sale of Shares at any particular price. Upon the sale of the Shares, the Company agrees to pay the Recipient the cash proceeds
from the sale of the Shares, less any brokerage fees or commissions and subject to any obligation to satisfy Tax-Related Items.
The Recipient acknowledges that the Recipient is not aware of any material nonpublic information with respect to the Company or
any securities of the Company as of the date of this Agreement.

 

The Recipient is required immediately to repatriate
to Morocco the proceeds from the sale of any Shares which may be issued to the Recipient at vesting and settlement of the Awards.
Such repatriation of proceeds may need to be effectuated through a special account established by the Company, its Subsidiary or
Affiliate. By accepting the Awards, the Recipient consents and agrees that the cash proceeds may be transferred to such special
account prior to being delivered to the Recipient.

 

If repatriation of proceeds is not effectuated through
a special account, the Recipient agrees to maintain his or hers own records proving repatriation and to provide copies of these
records upon request from the Company, its Subsidiary and/or the Office des Changes. The Recipient is responsible for ensuring
compliance with all exchange control laws in Morocco.

 

    	 	A-13	 

     

    

PAKISTAN

 

Terms and Conditions

 

Immediate Sale of Shares

 

Notwithstanding anything to the contrary in the Agreement
and the Plan, due to local regulatory requirements, the Recipient agrees to the immediate sale of any Shares to be issued to the
Recipient on the Release Date. The Recipient further agrees that the Company is authorized to instruct its designated broker to
assist with the mandatory sale of such Shares (on the Recipient’s behalf pursuant to this authorization without further consent)
and the Recipient expressly authorizes the Company’s designated broker to complete the sale of such Shares. The Recipient
acknowledges that the Company and its designated broker are under no obligation to arrange for the sale of the Shares at any particular
price. Upon the sale of the Shares, the Company will deliver to the Recipient the cash proceeds from the sale of the Shares, less
any Tax-Related Items and brokerage fees or commissions.

 

Notifications

 

Exchange Control Information

 

The Recipient is required immediately to repatriate to Pakistan
the proceeds from the sale of Shares as described above. The Recipient should consult his or her personal advisor prior to exercise
and settlement of the Awards to ensure compliance with the applicable exchange control regulations in Pakistan, as such regulations
are subject to frequent change. The Recipient is responsible for ensuring compliance with all exchange control laws in Pakistan.

 

PHILIPPINES

 

Notifications

 

Securities Law Information

 

The Recipient acknowledges that the Recipient is permitted
to sell Shares acquired under the Plan through the broker, provided that such sale takes place outside of the Philippines through
the facilities of the New York Stock Exchange on which the Shares are listed.

 

The securities being offered or sold herein have not been
registered with the Philippines Securities and Exchange Commission under its Securities Regulation Code (the “SRC”).
Any future offer or sale thereof is subject to registration requirements under the SRC unless such offer or sale qualifies as an
exempt transaction.

 

RUSSIA

 

Terms and Conditions

 

U.S. Transaction and Sale Restrictions

 

The Recipient understands that acceptance of the grant of
the Award results in a contract between the Recipient and the Company completed in the United States and that the Agreement are
governed by the laws of the Commonwealth of Delaware, without regard to choice of law principles thereof. Any Shares acquired under
the Plan shall be delivered to the Recipient through a brokerage account in the U.S. The Recipient may hold the Shares in his or
her brokerage account in the U.S.; however, in no event will Shares issued to the Recipient under the Plan be delivered to the
Recipient in Russia. The Recipient is not permitted to sell the Shares directly to other Russian legal entities or individuals,
nor is Recipient permitted to bring any certificates representing the Shares into Russia (if such certificates are actually issued).

 

Depending on the development of local regulatory requirements,
the Company reserves the right to require the immediate sale of any Shares to be issued to Recipient upon vesting of the Award.
By accepting the Award, Recipient acknowledges that Recipient understands and agree that the Company is authorized to, and may,
in its sole discretion, instruct its designated broker to assist with the mandatory sale of Shares issued to the Recipient upon
vesting of the Award (on Recipient’s behalf pursuant to this authorization) and Recipient expressly authorizes the Company’s
designated broker to complete the sale of such Shares. Recipient acknowledges that the Company’s designated broker is under
no obligation to arrange for the sale of the Shares at any particular price. Upon the sale of the shares of Shares, Recipient will
receive the cash proceeds, less any Tax-Related Items and brokerage fees or commissions.

 

    	 	A-14	 

     

    

Data Privacy

 

The following provision replaces Section 11 of the Agreement:

 

By accepting the Award, the Recipient acknowledges that he
or she has read, understood and agrees to the terms regarding the collection, processing and transfer of data described in Section
11 of the Agreement. In this regard, upon request of the Company or the Employer, the Recipient agrees to provide an executed data
privacy consent form or any similar agreements or consents that the Company or the Employer may deem necessary to obtain under
the data privacy laws in Russia, either now or in the future. The Recipient understands that he or she will not be able to participate
in the Plan if the Recipient fails to execute any such consent or agreement that may be requested.

 

Notifications

 

Securities Law Information

 

The Employer is not in any way involved in the offer
of the Award or administration of the Plan. The Agreement, the Plan and all other materials the Recipient may receive regarding
participation in the Plan do not constitute advertising or an offering of securities in Russia. The issuance of Shares under the
Plan has not and will not be registered in Russia and hence the Shares described in any Plan-related documents may not be offered
or placed in public circulation in Russia.

 

Please note that, under the Russian
law, the Recipient is not permitted to sell or otherwise alienate the Shares directly to other Russian individuals and the Recipient
is not permitted to bring Share certificates into Russia.

 

Exchange Control Information

 

The Recipient is responsible for complying with all
currency control laws and regulations in Russia that may apply to participation in the Plan. Within a reasonably short time after
the receipt of any funds resulting from the Award (e.g., sale proceeds, dividends, etc.), the funds must be repatriated
to Russia and credited to a Russian resident Recipient through a foreign currency account at an authorized bank in Russia. After
the funds are initially received in Russia, they may be further remitted to foreign banks in accordance with Russian exchange control
laws. Effective August 2, 2014, dividends (but not dividend equivalents) do not need to be remitted to a Russian resident Recipient’s
bank account in Russia but instead can be remitted directly to a foreign individual bank account (in Organisation for Economic
Cooperation and Development (“OECD”) and Financial Action Task Force (“FATF”) countries). The Recipient
should consult his or her personal advisor before remitting any funds into Russia, as exchange control requirements are subject
to change at any time, often without notice.

 

Labor Law Information

 

If the Recipient continues to hold Common Stock acquired
at vesting of the Award after an involuntary termination of employment, he or she may not be eligible to receive unemployment benefits
in Russia.

 

SINGAPORE

 

Notifications

 

Securities Law Information

 

The Award is being granted pursuant to the “Qualifying
Person” exemption under section 273(1)(f) of the Securities and Futures Act (Chapter 289, 2006 Ed.) (“SFA”).
The Plan has not been lodged or registered as a prospectus with the Monetary Authority of Singapore. The Recipient should note
that the Award is subject to section 257 of the SFA and the Recipient should not make any subsequent sale of the Shares in Singapore
or any offer of such subsequent sale of the Shares in Singapore, unless such sale or offer is made (1) after 6 months from the
Award Date or (2) pursuant to the exemptions under Part XIII Division (1) Subdivision (4) (other than section 280) of the SFA.

 

    	 	A-15	 

     

    

Chief Executive Officer and Director Notification Requirement

 

If the Recipient is a Chief Executive Officer (“CEO”)
or a director, associate director or shadow director of the Company’s Singapore Affiliate, the Recipient is subject to certain
notification requirements under the Singapore Companies Act. Among these requirements is an obligation to notify the Company’s
Singapore Affiliate in writing when the Recipient receives an interest (e.g., the Awards, Shares, etc.) in the Company or
any Affiliates within two business days of (i) its acquisition or disposal, (ii) any change in a previously disclosed interest
(e.g., when Shares are sold), or (iii) becoming a CEO, director, associate director or shadow director. 

 

SOUTH AFRICA

 

Terms and Conditions

 

Tax Acknowledgment

 

By accepting the Award, the Recipient agrees to notify the
Employer of the amount of any gain realized at the taxable event. If the Recipient fails to advise the Employer of the gain realized
at the taxable event, the Recipient may be liable for a fine. The Recipient will be responsible for paying any difference between
the actual tax liability and the amount withheld.

 

Notifications

 

Exchange Control Information

 

South African residents may be required to obtain approval
from the South African Reserve Bank for payments (including payment of the proceeds from the sale of Shares) that he or she receives
into accounts held outside of South Africa (e.g., a U.S. brokerage account). The Recipient should consult his or her personal
advisor to ensure compliance with current exchange control regulations.

 

SPAIN

 

Terms and Conditions

 

Labor Law Acknowledgment

 

The following provision supplements Section 12 of the Agreement:

 

In accepting the Award, the Recipient consents to participate
in the Plan and acknowledges that he or she has received a copy of the Plan.

 

The Recipient understands and agrees that the Company
has unilaterally, gratuitously and discretionally decided to grant the Award under the Plan to individuals who may be employees
of the Company and any Affiliates throughout the world. The decision is a limited decision that is entered into upon the express
assumption and condition that any grant will not economically or otherwise bind the Company or any Affiliates, over and above the
specific terms of the Plan. Consequently, the Recipient understands that the Award is granted on the assumption and condition that
the Award and any Shares issued under the Plan are not part of any employment contract (either with the Company or any Affiliates)
and shall not be considered a mandatory benefit, salary for any purposes (including severance compensation) or any other right
whatsoever. In addition, the Recipient understands that the Award would not be granted to the Recipient but for the assumptions
and conditions referred to herein; thus, the Recipient acknowledges and freely accepts that should any or all of the assumptions
be mistaken or should any of the conditions not be met for any reason, then the grant of the Award and any right to the Award shall
be null and void.

 

Further, the vesting of the Award is expressly conditioned
on the Recipient’s continued employment, such that upon termination of employment, the Award may cease vesting immediately,
effective on the date of the Recipient’s termination of employment (unless otherwise specifically provided in the Agreement
and/or the Plan). In particular, the Recipient understands and agrees that any unreleased Awards as of the date the Recipient is
no longer actively employed or in service (unless otherwise specifically provided in the Agreement and/or the Plan) will be forfeited
without entitlement to the underlying Shares or to any amount of indemnification in the event of termination of the Recipient’s
employment by reason of, but not limited to, resignation, retirement, disciplinary dismissal adjudged to be with cause, disciplinary
dismissal adjudged or recognized to be without cause, individual or collective dismissal adjudged or recognized to be without cause,
individual or collective dismissal on objective grounds, whether adjudged or recognized to be with or without cause, material modification
of the terms of employment under Article 41 of the Workers’ Statute, relocation under Article 40 of the Workers’ Statute,
Article 50 of the Workers’ Statute, unilateral withdrawal by the Employer and under Article 10.3 of the Royal Decree 1382/1985.

 

    	 	A-16	 

     

    

Notifications

 

Securities Law Information

 

The grant of an Award and the Shares
issued pursuant to the vesting/settlement of the Award are considered a private placement outside the scope of Spanish laws on
public offerings and issuances of securities. Neither the Plan nor the Agreement have been registered with the Comisión
National del Mercado de Valores and do not constitute a public offering prospectus.

 

Exchange Control Information

 

The acquisition, ownership and disposition of Shares and
must be declared for statistical purposes to the Dirección General de Comercio e Inversiones (the “DGCI”),
which is a department of the Ministry of Economy and Competitiveness. If the Recipient acquires Shares through the use of a Spanish
financial institution, that institution will automatically make the declaration to the DGCI for the Recipient; otherwise, the resident
Recipient will be required make the declaration by filing the appropriate form with the DGCI. Generally, the declaration must be
made in January for Shares owned as of December 31 of) the prior year; however, if the value of Shares acquired or sold exceeds
€1,502,530 (or the Recipient holds 10% or more of the capital of the Company or such other amount that would entitle the Recipient
to join the Company’s board of directors), the declaration must be filed within one (1) month of the acquisition or sale,
as applicable.

 

Foreign Asset/Account Reporting Information

 

To the extent the Recipient holds rights or assets outside
of Spain with a value in excess of €50,000 per type of right or asset (e.g., Shares, cash, etc.) as of December 31
each year, such resident will be required to report information on such rights and assets on his or her annual tax return for such
year. After such rights and assets are initially reported, the reporting obligation will apply for subsequent years only if the
value of any previously-reported rights or assets increases by more than €20,000.

 

Further, the Recipient will be required to electronically
declare to the Bank of Spain any securities accounts (including brokerage accounts held abroad), as well as the securities (including
Shares acquired under the Plan) held in such accounts if the value of the transactions for all such accounts during the prior tax
year or the balances in such accounts as of December 31 of the prior tax year exceed €1,000,000.

 

Further, the Recipient is required to electronically declare
to the Bank of Spain any foreign accounts (including brokerage accounts held abroad), any foreign instruments (including Shares
acquired under the Plan), and any transactions with non-Spanish residents (including any payments of cash or Shares made to the
Recipient under the Plan) if the balances in such accounts together with the value of such instruments as of December 31, or the
volume of transactions with non-Spanish residents during the relevant year, exceed €1,000,000.

 

THAILAND

 

Notifications

 

Exchange Control Information

 

If the proceeds from the sale of Shares or the receipt of
dividends are equal to or greater than US$50,000 or more in a single transaction, Thai resident Recipients must repatriate the
proceeds to Thailand immediately upon receipt and convert the funds to Thai Baht or deposit the proceeds in a foreign currency
deposit account maintained by a bank in Thailand within 360 days of remitting the proceeds to Thailand. In addition, Thai resident
Recipients must report the inward remittance to the Bank of Thailand on a foreign exchange transaction form.

 

    	 	A-17	 

     

    

Because exchange control regulations change frequently and
without notice, the Recipient should consult his or her personal advisor before selling Shares to ensure compliance with current
regulations. It is the Recipient’s sole responsibility to comply with exchange control laws in Thailand.

 

SWITZERLAND

 

Notifications

 

Securities Law Notification

 

The grant of the Award is considered a private offering and
therefore is not subject to securities registration in Switzerland.

 

TURKEY

 

Notifications

 

Securities Law Information

 

Under Turkish law, the Recipient is not permitted to sell
Shares acquired under the Plan in Turkey. The Recipient must sell the Shares acquired under the Plan outside of Turkey. The Shares
are currently traded on the New York Stock Exchange in the United States under the ticker symbol “KO” and Shares may
be sold on this exchange.

 

Exchange Control Information

 

Under Turkish exchange control regulations, the Recipient
may be required to use a financial intermediary institution approved under the Turkish Capital Market Law to acquire or sell shares
traded on a foreign market and to report such activity to the Capital Markets Board. The Recipient should consult his or her
personal advisor regarding these requirements.

 

UNITED ARAB EMIRATES

 

Notifications

 

Securities Law Information

 

Participation in the Plan is being offered only to selected
Recipients and is in the nature of providing equity incentives to Recipients in the United Arab Emirates. The Plan and the Agreement
are intended for distribution only to such Recipients and must not be delivered to or relied on by any other person. Prospective
purchasers of the securities offered should conduct their own due diligence on the securities.

 

If the Recipient does not understand the contents of the
Plan and the Agreement, the Recipient should consult an authorized financial adviser. The Emirates Securities and Commodities Authority
and the Dubai Financial Services Authority have no responsibility for reviewing or verifying any documents in connection with the
Plan. Neither the Ministry of Economy nor the Dubai Department of Economic Development have approved the Plan or the Agreement
nor taken steps to verify the information set out therein, and have no responsibility for such documents.

 

    	 	A-18	 

     

    

UNITED KINGDOM

 

Terms and Conditions

 

Responsibility for Taxes

 

The following provisions supplement Section 7 of the Agreement:

 

If payment or withholding of income taxes is not made
within ninety (90) days of the end of the tax year in which the income tax liability arises, or such other period specified in
Section 222(1)(c) of the U.K. Income Tax (Earnings and Pensions) Act 2003 (the “Due Date”), the amount of any uncollected
income tax shall constitute a loan owed by the Recipient to the Employer, effective on the Due Date. The Recipient understands
and agrees that the loan will bear interest at the then-current official rate of Her Majesty’s Revenue and Customs (“HMRC”),
it will be immediately due and repayable by the Recipient, and the Company and/or the Employer may recover it at any time thereafter
by any of the means referred to in Section 7 of the Agreement.

 

Notwithstanding the foregoing, if the Recipient is a
director or an executive officer (as within the meaning of Section 13(k) of the U.S. Securities Exchange Act of 1934, as amended),
the Recipient will not be eligible for such a loan to cover the uncollected income tax. In the event that the Recipient is a director
or executive officer and the income tax is not collected from or paid by the Recipient by the Due Date, the Recipient understands
that the amount of any uncollected income tax may constitute a benefit to the Recipient on which additional income tax and national
insurance contributions (“NICs”) may be payable. The Recipient will be responsible for reporting and paying any income
tax due on this additional benefit directly to HMRC under the self-assessment regime and for reimbursing the Company or the Employer
(as appropriate) for the value of any employee NICs due on this additional benefit, which the Company and/or the Employer may recover
from the Recipient by any of the means referred to in Section 7 of the Agreement.

 

Notifications

 

Securities Disclosure

 

This Agreement is not an approved prospectus for the purposes
of section 85(1) of the Financial Services and Markets Act 2000 (“FSMA”) and no offer of transferable securities to
the public (for the purposes of section 102B of FSMA) is being made in connection with the Plan. The Plan and the Award are exclusively
available in the UK to bona fide employees and former employees and any other UK Subsidiary of the Company.

 

URUGUAY

 

Data Privacy

 

The following provision supplements Section 11 of the Agreement:

 

The Recipient understands that his or her Data will be collected
by his or her Employer and will be transferred to the Company at One Coca-Cola Plaza, Atlanta Georgia, 30313, United States and/or
any financial institutions or brokers involved in the management and administration of the Plan. The Recipient further understands
that any of these entities may store the Recipient’s Data for purposes of administering his or her participation in the Plan.

 

    	 	A-19EXHIBIT 4.1

	
 
    

 

INDENTURE

 

between

 

FORD CREDIT AUTO LEASE TRUST 20   -     ,
 as Issuer

 

and

 

                                                                  ,
 as Indenture Trustee

 

Dated as of            , 20     

	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   USAGE AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
Section 1.2.
    	
Incorporation by   Reference of Trust Indenture Act
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE II   THE NOTES
    	
2
    
	
Section 2.1.
    	
Form of Notes
    	
2
    
	
Section 2.2.
    	
Execution,   Authentication and Delivery
    	
2
    
	
Section 2.3.
    	
Tax Treatment
    	
3
    
	
Section 2.4.
    	
Note Register
    	
3
    
	
Section 2.5.
    	
Registration of   Transfer and Exchange
    	
4
    
	
Section 2.6.
    	
[Rule 144A Notes]
    	
5
    
	
Section 2.7.
    	
Mutilated, Destroyed,   Lost or Stolen Notes
    	
6
    
	
Section 2.8.
    	
Persons Deemed Owners
    	
7
    
	
Section 2.9.
    	
Payments on Notes
    	
7
    
	
Section 2.10.
    	
Cancellation of Notes
    	
8
    
	
Section 2.11.
    	
Release of Collateral
    	
8
    
	
Section 2.12.
    	
Book-Entry Notes
    	
8
    
	
Section 2.13.
    	
Definitive Notes
    	
9
    
	
Section 2.14.
    	
Authenticating Agents
    	
9
    
	
Section 2.15.
    	
Note Paying Agents
    	
9
    
	
 
    	
 
    	
 
    
	
ARTICLE III   COVENANTS, REPRESENTATIONS AND WARRANTIES
    	
10
    
	
Section 3.1.
    	
Payment of Principal   and Interest
    	
10
    
	
Section 3.2.
    	
Maintenance of Office   or Agency
    	
10
    
	
Section 3.3.
    	
Money for Payments To   Be Held in Trust
    	
10
    
	
Section 3.4.
    	
Existence
    	
11
    
	
Section 3.5.
    	
Protection of   Collateral
    	
11
    
	
Section 3.6.
    	
Performance of   Obligations
    	
12
    
	
Section 3.7.
    	
Negative Covenants
    	
12
    
	
Section 3.8.
    	
Opinions on Collateral
    	
13
    
	
Section 3.9.
    	
Annual Certificate of   Compliance
    	
13
    
	
Section 3.10.
    	
Merger and   Consolidation; Transfer of Assets
    	
13
    
	
Section 3.11.
    	
Successor or Transferee
    	
14
    
	
Section 3.12.
    	
No Other Activities
    	
15
    
	
Section 3.13.
    	
Further Acts and   Documents
    	
15
    
	
Section 3.14.
    	
Restricted Payments
    	
15
    
	
Section 3.15.
    	
Notice of Events of   Default
    	
15
    
	
Section 3.16.
    	
Review of Issuer’s   Records
    	
15
    
	
Section 3.17.
    	
Issuer’s   Representations and Warranties
    	
15
    
	
Section 3.18.
    	
Issuer’s   Representations and Warranties About Security Interest
    	
16
    
	
Section 3.19.
    	
[Calculation Agent]
    	
17
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   SATISFACTION AND DISCHARGE
    	
18
    
	
Section 4.1.
    	
Satisfaction and   Discharge of Indenture
    	
18
    

 

i

 

	
ARTICLE V   EVENTS OF DEFAULT; REMEDIES
    	
19
    
	
Section 5.1.
    	
Events of Default
    	
19
    
	
Section 5.2.
    	
Acceleration of   Maturity; Rescission
    	
19
    
	
Section 5.3.
    	
Collection of   Indebtedness by Indenture Trustee
    	
20
    
	
Section 5.4.
    	
Trustee May File   Proofs of Claim
    	
20
    
	
Section 5.5.
    	
Enforcement of Claims   Without Possession of Notes
    	
21
    
	
Section 5.6.
    	
Remedies; Priorities
    	
21
    
	
Section 5.7.
    	
Optional Preservation   of Collateral
    	
23
    
	
Section 5.8.
    	
Limitation on Suits
    	
23
    
	
Section 5.9.
    	
Unconditional Rights to   Receive Principal and Interest
    	
24
    
	
Section 5.10.
    	
Restoration of Rights   and Remedies
    	
24
    
	
Section 5.11.
    	
Rights and Remedies   Cumulative
    	
24
    
	
Section 5.12.
    	
Delay or Omission Not a   Waiver
    	
24
    
	
Section 5.13.
    	
Control by Noteholders
    	
24
    
	
Section 5.14.
    	
Waiver of Defaults and   Events of Default
    	
25
    
	
Section 5.15.
    	
Agreement to Pay Costs
    	
25
    
	
Section 5.16.
    	
Waiver of Stay or   Extension Laws
    	
25
    
	
Section 5.17.
    	
Performance and   Enforcement of Obligations
    	
26
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   INDENTURE TRUSTEE
    	
26
    
	
Section 6.1.
    	
Indenture Trustee’s   Obligations
    	
26
    
	
Section 6.2.
    	
Indenture Trustee’s   Rights
    	
27
    
	
Section 6.3.
    	
Indenture Trustee’s   Individual Rights
    	
29
    
	
Section 6.4.
    	
Indenture Trustee’s   Disclaimer
    	
29
    
	
Section 6.5.
    	
Notice of Defaults
    	
29
    
	
Section 6.6.
    	
Reports by Indenture   Trustee
    	
29
    
	
Section 6.7.
    	
Compensation and   Indemnity
    	
30
    
	
Section 6.8.
    	
Resignation or Removal   of Indenture Trustee
    	
31
    
	
Section 6.9.
    	
Merger or   Consolidation; Transfer of Assets
    	
32
    
	
Section 6.10.
    	
Appointment of Separate   Trustee or Co-Trustee
    	
32
    
	
Section 6.11.
    	
Eligibility;   Disqualification
    	
33
    
	
Section 6.12.
    	
Preferential Collection   of Claims Against Issuer
    	
34
    
	
Section 6.13.
    	
Inspection of Indenture   Trustee; Access to Records
    	
34
    
	
Section 6.14.
    	
Indenture Trustee’s   Representations and Warranties
    	
35
    
	
Section 6.15.
    	
Obligation to Update   Disclosure
    	
36
    
	
Section 6.16.
    	
Reporting of   Reallocations of Leases and Leased Vehicles
    	
36
    
	
 
    	
 
    	
 
    
	
ARTICLE VII   NOTEHOLDER COMMUNICATIONS AND REPORTS
    	
37
    
	
Section 7.1.
    	
Noteholder   Communications
    	
37
    
	
Section 7.2.
    	
Noteholder Demand for   Asset Representations Review
    	
38
    
	
Section 7.3.
    	
Reports by Issuer
    	
39
    
	
Section 7.4.
    	
Reports by Indenture Trustee
    	
39
    
	
 
    	
 
    	
 
    
	
ARTICLE VIII   ACCOUNTS, DISTRIBUTIONS AND RELEASES
    	
39
    
	
Section 8.1.
    	
Collection of Funds
    	
39
    
	
Section 8.2.
    	
Bank Accounts;   Distributions
    	
40
    
	
Section 8.3.
    	
Bank Accounts
    	
42
    
	
Section 8.4.
    	
Release of Collateral
    	
43
    

 

ii

 

	
ARTICLE IX   AMENDMENTS
    	
44
    
	
Section 9.1.
    	
Amendments Without   Consent of Noteholders
    	
44
    
	
Section 9.2.
    	
Amendments with Consent   of Controlling Class
    	
45
    
	
Section 9.3.
    	
Execution of Amendments
    	
46
    
	
Section 9.4.
    	
Effect of Amendment
    	
46
    
	
Section 9.5.
    	
Conformity with TIA
    	
46
    
	
Section 9.6.
    	
Reference in Notes to   Supplemental Indentures
    	
46
    
	
 
    	
 
    	
 
    
	
ARTICLE X   REDEMPTION OF NOTES
    	
46
    
	
Section 10.1.
    	
Redemption
    	
46
    
	
 
    	
 
    	
 
    
	
ARTICLE XI   OTHER AGREEMENTS
    	
47
    
	
Section 11.1.
    	
No Petition
    	
47
    
	
Section 11.2.
    	
Limited Recourse;   Subordination of Claims Against Titling Companies
    	
48
    
	
Section 11.3.
    	
Limited Recourse;   Subordination of Claims against Depositor
    	
48
    
	
Section 11.4.
    	
Issuer Orders;   Certificates and Opinions
    	
49
    
	
Section 11.5.
    	
Acts of Noteholders
    	
51
    
	
Section 11.6.
    	
Conflict with Trust   Indenture Act
    	
51
    
	
Section 11.7.
    	
Issuer Obligation
    	
51
    
	
 
    	
 
    	
 
    
	
ARTICLE XII   MISCELLANEOUS
    	
52
    
	
Section 12.1.
    	
Benefits of Indenture;   Third-Party Beneficiaries
    	
52
    
	
Section 12.2.
    	
Notices
    	
52
    
	
Section 12.3.
    	
GOVERNING LAW
    	
52
    
	
Section 12.4.
    	
Submission to   Jurisdiction
    	
53
    
	
Section 12.5.
    	
WAIVER OF JURY TRIAL
    	
53
    
	
Section 12.6.
    	
No Waiver; Remedies
    	
53
    
	
Section 12.7.
    	
Severability
    	
53
    
	
Section 12.8.
    	
Headings
    	
53
    
	
Section 12.9.
    	
Counterparts
    	
53
    
	
 
    	
 
    	
 
    
	
Schedule A
    	
Notice Addresses
    	
SA-1
    
	
Exhibit A
    	
Form of Notes
    	
EA-1
    
				

 

iii

 

INDENTURE, dated as of            , 20   (this “Indenture”), between FORD CREDIT AUTO LEASE TRUST 20  -  , a Delaware statutory trust, as Issuer, and                                 , a                                             , as Indenture Trustee for the benefit of the Secured Parties.

 

In connection with a securitization transaction sponsored by Ford Credit, the Issuer will issue Notes secured by the 20  -   Exchange Note issued by the Titling Companies and purchased by the Issuer from the Depositor, who purchased it from Ford Credit.  The 20  -   Exchange Note is secured by a reference pool of Leases and Leased Vehicles purchased by the Titling Companies from motor vehicle dealers.

 

The parties agree as follows:

 

GRANTING CLAUSE

 

The Issuer Grants to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Secured Parties, all the Issuer’s right, title and interest in, to and under, whether now owned or later acquired, the Collateral.

 

This Grant is made in trust to secure (a) the payment of principal of, interest on and other amounts owing on the Notes as stated in this Indenture and (b) compliance by the Issuer with this Indenture for the benefit of the Secured Parties.

 

The Titling Companies jointly and severally Grant to the Indenture Trustee at the Closing Date, as Indenture Trustee for the benefit of the Secured Parties, all the Titling Companies’ right, title and interest in, to and under, whether now owned or existing or later acquired in, the Titling Company Collateral Accounts.  This Grant is made in trust to secure (a) the payment of principal of, interest on and other amounts owing on, the 20  -   Exchange Note as stated in the Exchange Note Supplement and (b) compliance by the Titling Companies with the Exchange Note Supplement for the benefit of the Secured Parties.

 

The Indenture Trustee acknowledges these Grants, accepts the trusts under this Indenture according to this Indenture and agrees to perform the obligations stated in this Indenture and the Exchange Note Supplement so that the interests of the Secured Parties may be adequately and effectively protected.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.                                 Usage and Definitions.  Capitalized terms used but not defined in this Indenture are defined in Appendix 1 to the 20  -   Exchange Note Supplement, dated as of                    , 20   (the “Exchange Note Supplement”), to the Second Amended and Restated Credit and Security Agreement, dated as of July 22, 2005, as amended and restated as of December 1, 2015 (the “Credit and Security Agreement”), among the CAB East LLC and CAB West LLC, as Borrowers, U.S. Bank National Association, as Administrative Agent, HTD Leasing LLC, as Collateral Agent, and Ford Motor Credit Company LLC, as Lender and Servicer, or in Appendix A to the Credit and Security Agreement.  Appendix 1 and Appendix A

 

 

also contain usage rules that apply to this Indenture.  Appendix 1 and Appendix A are incorporated by reference into this Indenture.

 

Section 1.2.                                 Incorporation by Reference of Trust Indenture Act.  Whenever this Indenture refers to a part of the TIA, it is incorporated by reference in and made a part of this Indenture.  The following TIA terms used in this Indenture have the following meanings:

 

“indenture securities” means the Notes;

 

“indenture security holder” means a Noteholder;

 

“indenture to be qualified” means this Indenture;

 

“indenture trustee” or “institutional trustee” means the Indenture Trustee; and

 

“obligor” on the indenture securities means the Issuer and any other obligor on the indenture securities.

 

Any other TIA terms used in this Indenture that are defined in the TIA, defined by TIA reference to another statute or defined by Securities and Exchange Commission rule have the meaning assigned to them by those definitions.

 

ARTICLE II
 THE NOTES

 

Section 2.1.                                 Form of Notes.

 

(a)                                 Form.  Each Class of Notes will be in substantially the form of Exhibit A with variations required or permitted by this Indenture.  The Notes may have marks of identification and legends or endorsements as determined by the Responsible Person of the Issuer executing the Notes.  The physical Notes will be produced by a method determined by the Responsible Person of the Issuer executing the Notes.

 

(b)                                 Incorporation by Reference.  Each Note will be dated the date of its authentication.  The terms of the Notes in Exhibit A are part of this Indenture and are incorporated into this Indenture by reference.

 

Section 2.2.                                 Execution, Authentication and Delivery.

 

(a)                                 Execution.  A Responsible Person of the Issuer will execute the Notes for the Issuer.  The signature of the Responsible Person on the Notes may be manual or facsimile.  Notes having the manual or facsimile signature of an individual who was a Responsible Person of the Issuer will bind the Issuer, even if the individual has ceased to be a Responsible Person before the authentication and delivery of the Notes or was not a Responsible Person on the issuance date of the Notes.

 

2

 

(b)                                 Authentication and Delivery.  The Indenture Trustee will, on Issuer Order, authenticate and deliver the Notes for original issue in the Classes, Note Interest Rates and initial Note Balances as stated below.

 

	
Class
    	
 
    	
Note Interest Rate
    	
 
    	
Initial Note Balance
    	
 
    
	
Class A-1   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    
	
Class A-2[a]   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    
	
[Class A-2b   Notes
    	
 
    	
one-month LIBOR +      %]
    	
 
    	
$
    	
[     ]
    	
 
    
	
Class A-3   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    
	
Class A-4   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    
	
Class B   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    
	
Class C   Notes
    	
 
    	
%
    	
 
    	
$
    	
[     ]
    	
 
    

 

(c)                                  Denomination.  The Notes will initially be issued as Book-Entry Notes.  The Notes, except for the Rule 144A Notes, will be issued in minimum denominations of $1,000 and in multiples of $1,000.  The Rule 144A Notes will be issued in minimum denominations of $100,000 and in multiples of $1,000 in excess of $100,000.  However, one Note of each Class may be issued in a different amount if it exceeds the minimum denomination for the Class.

 

(d)                                 Certificate of Authentication.  No Note will have the benefit of this Indenture or be valid unless it has a certificate of authentication substantially in the form included in Exhibit A manually executed by a Responsible Person of the Indenture Trustee.  The certificate of authentication on a Note will be conclusive evidence that the Note has been duly authenticated and delivered under this Indenture.

 

Section 2.3.                                 Tax Treatment.  The Issuer intends that Notes owned or beneficially owned by a Person other than Ford Credit or its Affiliates will be indebtedness of the Issuer for U.S. federal, State and local income and franchise tax purposes.  The Issuer, by entering into this Indenture, and each Noteholder, by its acceptance of a Note (and each Note Owner by its acceptance of an interest in the applicable Book-Entry Note), agree to treat the Notes for U.S. federal, State and local income and franchise tax purposes as indebtedness of the Issuer.

 

Section 2.4.                                 Note Register.  The Issuer appoints the Indenture Trustee to be the “Note Registrar” and to keep a register (the “Note Register”) for the purpose of registering Notes and transfers and exchanges of Notes.  On resignation of the Note Registrar, the Issuer will promptly appoint a successor or, if it elects not to make the appointment, assume the obligations of Note Registrar.  If the Issuer appoints a Person other than the Indenture Trustee as Note Registrar, (i) the Issuer will notify the Indenture Trustee of the appointment and (ii) the Indenture Trustee will have the right to rely on a certificate executed by an officer of the Note Registrar listing the names and addresses of the Noteholders and the principal amounts and number of the Notes.  Each of the Indenture Trustee (if it is not the Note Registrar), the Issuer and the Administrator will have the right to inspect the Note Register at reasonable times and to receive copies of the Note Register.

 

3

 

Section 2.5.                                 Registration of Transfer and Exchange.

 

(a)                                 Transfer of Notes.  A Noteholder may transfer a Note by surrendering the Note for registration of transfer at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute and the Indenture Trustee will authenticate and deliver to the Noteholder, in the name of the transferee or transferees, new Notes of the same Class, in the same principal amount.

 

(b)                                 Exchange of Notes.  A Noteholder may exchange Notes for other Notes of the same Class by surrendering the Notes to be exchanged at the office or agency of the Issuer maintained under Section 3.2.  If the requirements of Section 8-401(a) of the UCC are met, the Issuer will execute, the Indenture Trustee will authenticate and the Noteholder will receive from the Indenture Trustee new Notes of the same Class, in the same principal amount.

 

(c)                                  Valid Obligation.  Notes issued on the registration of transfer or exchange of Notes will be the valid obligations of the Issuer, evidencing the same debt, and have the same benefits under this Indenture as the Notes surrendered for registration of transfer or exchange.

 

(d)                                 Surrendered Notes.  Every Note surrendered for registration of transfer or exchange will be (i) duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Note Registrar or the Indenture Trustee duly executed by, the Noteholder of the Note or the Noteholder’s authorized attorney, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar including membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program”, according to the Exchange Act and (ii) accompanied by other documents the Indenture Trustee may require.

 

(e)                                  No Service Charge.  None of the Issuer, the Note Registrar or the Indenture Trustee will impose a service charge on a Noteholder for the registration of transfer or exchange of Notes.  The Issuer, the Note Registrar or the Indenture Trustee may require the Noteholder to pay an amount to cover taxes or other governmental charges that may be imposed for the registration of transfer or exchange of the Notes.

 

(f)                                   Registration of Transfers and Exchanges.  The Note Register will register transfers and exchanges of Notes in the Note Register.  However, neither the Issuer nor the Note Registrar will be required to register transfers or exchanges of Notes for which the next Payment Date is not more than 15 days after the requested date of transfer or exchange or which have been called for redemption.

 

(g)                                  ERISA Representations.  Each Note Owner that is subject to Title I of ERISA, Section 4975 of the Code or Similar Law, by accepting an interest or participation in a Note, is deemed to represent that its purchase, holding and disposition of that interest or participation is not and will not result in a non-exempt prohibited transaction under Title I of ERISA or Section 4975 of the Code due to the applicability of a statutory or administrative exemption from the prohibited transaction rules (or, if the Note Owner is subject to Similar Law, the purchase, holding and disposition is not and will not result in a non-exempt violation of that Similar Law).

 

4

 

Section 2.6.                                 [Rule 144A Notes].

 

(a)                                 [Rule 144A Notes Not Registered.  The Rule 144A Notes have not been registered under the Securities Act or any State securities laws.  None of the Issuer, the Note Registrar or the Indenture Trustee is obligated to register the Rule 144A Notes under the Securities Act or any State securities or “blue sky” laws or to take other action not required under this Indenture or the Trust Agreement to permit the transfer of a Rule 144A Note without registration.  The Issuer, at the direction of the Depositor or the Administrator, may elect to register, or cause the registration of, the Rule 144A Notes under the Securities Act and applicable State securities laws.  In this case, the Issuer will deliver, or cause to be delivered, to the Indenture Trustee and the Note Registrar the Opinions of Counsel, Officer’s Certificates and other information necessary to effect the registration.

 

(b)                                 Restrictions on Transfer.  Until the Rule 144A Notes have been registered under the Securities Act and any applicable State securities laws under Section 2.6(a), no Rule 144A Note may be sold, transferred, assigned, participated, pledged or disposed of (each, a “Rule 144A Note Transfer”) except according to this Section 2.6, and a Rule 144A Note Transfer in violation of this Section 2.6 will be null and void (a “Void Rule 144A Note Transfer”).

 

(c)                                  Note Legend and Transferee Representation.  Each Rule 144A Note will bear the legend in Exhibit A.  As a condition to the registration of a Rule 144A Note Transfer, the prospective transferee of the Rule 144A Note will be deemed to represent to the Indenture Trustee, the Note Registrar and the Issuer the following:

 

(i)                                     It understands that the Rule 144A Notes have not been registered under the Securities Act or any State securities or “blue sky” laws.

 

(ii)                                  It understands that Rule 144A Note Transfers are only permitted if made in compliance with the Securities Act and other applicable laws and only to a person who the holder reasonably believes is a “qualified institutional buyer” within the meaning of Rule 144A (a “QIB”).

 

(iii)                               It (A) is a QIB, (B) is aware that the sale to it is being made in reliance on Rule 144A and if it is acquiring the Rule 144A Notes or an interest or participation in the Rule 144A Notes for the account of another QIB, that other QIB is aware that the sale is being made in reliance on Rule 144A and (C) is acquiring the Rule 144A Notes or an interest or participation in the Rule 144A Notes for its own account or for the account of another QIB.

 

(iv)                              It is purchasing the Rule 144A Notes for its own account or for one or more investor accounts for which it is acting as fiduciary or agent, in each case for investment, and not with a view to offer, transfer, assign, participate, pledge or dispose of the Rule 144A Notes for a distribution that would violate the Securities Act.

 

(d)                                 Rule 144A Noteholder Agreement.  By acceptance of a Rule 144A Note, the Rule 144A Noteholder agrees with and represents to the Depositor, the Issuer and the Note Registrar, that no Rule 144A Note Transfer will be made unless (i) the registration requirements of the Securities Act and applicable State securities laws have been complied with for the Rule 144A

 

5

 

Note according to Section 2.6(a), (ii) the Rule 144A Note Transfer is to the Depositor or its Affiliates or (iii) the Rule 144A Note Transfer is exempt from the registration requirements under the Securities Act because the Rule 144A Note Transfer is in compliance with Rule 144A, to a transferee who the transferor reasonably believes is a QIB that is purchasing for its own account or for the account of a QIB and to whom notice is given that the Rule 144A Note Transfer is being made in reliance on Rule 144A.

 

(e)                                  Rule 144A Information.  The Administrator will make available to the prospective transferor and transferee of a Rule 144A Note information requested to satisfy the requirements of paragraph (d)(4) of Rule 144A (the “Rule 144A Information”). The Rule 144A Information will include any of the following items requested by the prospective transferee:

 

(i)                                     the offering memorandum, if any, relating to the Rule 144A Notes and any amendments or supplements to the offering memorandum;

 

(ii)                                  the Monthly Investor Report for each Payment Date before the request;

 

(iii)                               copies of the Transaction Documents, including any amendments; and

 

(iv)                              any other information reasonably available to the Administrator that may be considered Rule 144A Information.]

 

Section 2.7.                                 Mutilated, Destroyed, Lost or Stolen Notes.

 

(a)                                 Replacement Notes.  If a mutilated Note is surrendered to the Indenture Trustee or the Indenture Trustee receives evidence of the destruction, loss or theft of a Note, the Issuer will execute and, on Issuer Request, the Indenture Trustee will authenticate and deliver a replacement Note of the same Class and principal amount in exchange for or in place of the Note if the following conditions are met: (i) the Indenture Trustee receives security or indemnity to hold the Issuer and the Indenture Trustee harmless, (ii) none of the Issuer, the Note Registrar or the Indenture Trustee have received notice that the Note has been acquired by a protected purchaser, as defined in Section 8-303 of the UCC and (iii) the requirements of Section 8-405 of the UCC are met.  However, if a destroyed, lost or stolen Note (but not a mutilated Note) is due and payable within 15 days or has been called for redemption, instead of issuing a replacement Note, the Issuer may pay the destroyed, lost or stolen Note when so due or payable or on the Redemption Date without surrender of the Note.  If a protected purchaser of the original Note in place of which the replacement Note was issued (or the payment made) presents for payment the original Note, the Issuer and the Indenture Trustee may recover the replacement Note (or the payment) from the Person to whom it was delivered or a Person taking the replacement Note (or the payment) from the Person to whom the replacement Note (or the payment) was delivered or an assignee of that Person, except a protected purchaser, and may recover on the security or indemnity provided for the replacement Note (or the payment) for any fee, expense, loss, damage or liability incurred by the Issuer or the Indenture Trustee for the replacement Note (or the payment).

 

(b)                                 Taxes, Charges and Expenses.  On the issuance of a replacement Note under Section 2.7(a), (i) the Issuer may require the Noteholder of the Note to pay an amount to cover any taxes or other governmental charges imposed and any other reasonable expenses incurred for

 

6

 

the replacement Note, (ii) the Indenture Trustee will, for a mutilated Note, cancel the Note and (iii) the Note Registrar will record in the Note Register that the destroyed, lost or stolen Note no longer has the benefits of this Indenture.

 

(c)                                  Additional Obligation.  Each replacement Note issued under Section 2.7(a) will be an original additional contractual obligation of the Issuer and have the benefits of this Indenture equally and proportionately with other Notes of the same Class duly issued under this Indenture.

 

(d)                                 Sole Remedy.  This Section 2.7 states the sole remedy available to Noteholders for the replacement or payment of mutilated, destroyed, lost or stolen Notes.

 

Section 2.8.                                 Persons Deemed Owners.  On any date, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name a Note is registered as of that date as the owner of the Note for all purposes, including receiving payments of principal of and interest on the Note, without regard to any notice or other information to the contrary.

 

Section 2.9.                                 Payments on Notes.

 

(a)                                 Interest Accrual.  Each Class of Notes will accrue interest on its Note Balance for each Interest Period until the Note Balance has been paid in full at a rate per annum equal to its Note Interest Rate for that Interest Period.  Interest on the Class A-1 [and Class A-2b] Notes will be calculated for each Interest Period on the basis of the actual number of days in the Interest Period and a 360-day year.  Interest on the Notes (other than the Class A-1 [and Class A-2b] Notes) for each Interest Period will be calculated on the basis of a 360-day year consisting of twelve 30-day months.  Interest on each Note for each Interest Period will be due and payable on the related Payment Date.

 

(b)                                 Principal.  The principal of each Class of Notes will be payable in installments on each Payment Date according to Article VIII.  The Note Balance of each Class of Notes will be due and payable on the earlier of the Redemption Date and its Final Scheduled Payment Date.  The Note Balance of each Class of Notes will be due and payable on the date the Notes are declared to be, or have automatically become, immediately due and payable according to Section 5.2(a).

 

(c)                                  Monthly Payment of Interest and Principal.  Interest and principal payments on each Class of Notes will be made pro rata to the Registered Noteholders of that Class on each Payment Date.  For Book-Entry Notes, payments will be made by wire transfer to the account designated by the nominee of the Clearing Agency according to Section 2.12.  For Definitive Notes, payments will be made (i) if the Noteholder has given to the Note Registrar instructions at least five Business Days before that Payment Date and the aggregate original principal amount of the Noteholder’s Notes is at least $1,000,000, by wire transfer to the account of the Registered Noteholder or (ii) by check mailed first class mail, postage prepaid, to the Registered Noteholder’s address as it appears on the Note Register on the related Record Date.  Amounts paid by wire transfers or checks that is returned undelivered will be held according to Section 3.3.

 

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(d)                                 Payment of Final Installment.  The final installment of principal (whether payable by wire transfer or check) of each Note on a Payment Date, the Redemption Date or the Final Scheduled Payment Date will be payable only on presentation and surrender of the Note, subject to Section 2.7(a).  The Indenture Trustee will notify each Registered Noteholder of the date the Issuer expects to pay the final installment on any of the Notes, which notice will be delivered no later than five days before that date, and the place where the Notes may be presented and surrendered for payment.

 

Section 2.10.                          Cancellation of Notes.  Any Person that receives a Note surrendered for payment, registration of transfer, exchange or redemption will deliver the Note to the Indenture Trustee and the Indenture Trustee will promptly cancel it.  The Issuer may surrender to the Indenture Trustee for cancellation Notes previously authenticated and delivered under this Indenture which the Issuer may have acquired, and the Indenture Trustee will promptly cancel them.  No Notes will be authenticated in place of or in exchange for Notes cancelled as stated in this Section 2.10.  The Indenture Trustee may hold or dispose of cancelled Notes according to its standard retention or disposal policy unless the Issuer directs, by Issuer Order, that they be destroyed or returned to it.

 

Section 2.11.                          Release of Collateral.  The Indenture Trustee will release property from the Lien of this Indenture only according to Sections 8.4 and 10.1.

 

Section 2.12.                          Book-Entry Notes.

 

(a)                                 Issuance and Registration.  The Notes will be issued as Book-Entry Notes on the Closing Date.  The Book-Entry Notes, on original issuance, will be issued in the form of printed Notes representing the Book-Entry Notes and delivered to The Depository Trust Company, the initial Clearing Agency, by, or on behalf of, the Issuer.  The Book-Entry Notes will be registered initially on the Note Register in the name of Cede & Co., the nominee of the initial Clearing Agency.

 

(b)                                 Sole Noteholder.  The Note Registrar and the Indenture Trustee may deal with the Clearing Agency as the sole Noteholder of the Book-Entry Notes for all purposes of this Indenture and will not be obligated to the Note Owners, except as stated in Section 7.2.

 

(c)                                  Rights.  The rights of Note Owners may be exercised only through the Clearing Agency and will be limited to those established by law and agreements between the Note Owners and the Clearing Agency and/or its participants under the DTC Letter.

 

(d)                                 Clearing Agency Obligations.  The Clearing Agency will make book-entry transfers among its participants and receive and transmit payments of principal of and interest on the Book-Entry Notes to the participants.

 

(e)                                  Representation of Noteholders.  If this Indenture requires or permits actions to be taken based on instructions or directions of the Noteholders of a stated percentage of the Note Balance of the Notes (or the Controlling Class), the Clearing Agency will be deemed to represent those Noteholders only if it has received instructions to that effect from Note Owners and/or the Clearing Agency’s participants owning or representing, the required percentage of the beneficial interest of the Notes (or the Controlling Class) and has delivered the instructions to the Indenture Trustee.

 

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(f)                                   Conflicts.  If this Section 2.12 conflicts with other terms of this Indenture, this Section 2.12 will control.

 

Section 2.13.                          Definitive Notes.  No Note Owner will receive a definitive, fully registered Note (a “Definitive Note”) representing the Note Owner’s interest in the Note unless and until (a) the Administrator notifies the Indenture Trustee that the Clearing Agency is no longer willing or able to properly discharge its responsibilities as depository for the Book-Entry Notes and the Administrator is unable to reach an agreement on satisfactory terms with a qualified successor, (b) the Administrator notifies the Indenture Trustee that it elects to terminate the book-entry system through the Clearing Agency or (c) after the occurrence and during the continuation of an Event of Default or a Reference Pool Servicer Termination Event for the 20  -   Reference Pool, Note Owners of a majority of the Note Balance of the Controlling Class notify the Indenture Trustee and the Clearing Agency that they elect to terminate the book-entry system through the Clearing Agency.  In these cases, the Clearing Agency will notify Note Owners and the Indenture Trustee of the availability of Definitive Notes.  After the Clearing Agency has surrendered the printed Notes representing the Book-Entry Notes and delivered the registration instructions to the Indenture Trustee, the Issuer will execute and the Indenture Trustee, on Issuer Request, will authenticate the Definitive Notes according to the instructions of the Clearing Agency.  None of the Issuer, the Note Registrar or the Indenture Trustee will be liable for delay in delivery of the instructions and may conclusively rely, and will be protected in relying, on the instructions.  On the issuance of Definitive Notes to Note Owners, the Indenture Trustee will recognize the holders of the Definitive Notes as Noteholders.

 

Section 2.14.                          Authenticating Agents.

 

(a)                                 Appointment.  The Indenture Trustee may appoint one or more Persons as authenticating agents for the Notes (each, an “Authenticating Agent”) with the power to act on its behalf and subject to its direction in the authentication of Notes for issuances, transfers, exchanges and replacements.  The authentication of Notes by an Authenticating Agent under this Section 2.14 is deemed to be the authentication of Notes “by the Indenture Trustee.”  If no Authenticating Agent is appointed, the Indenture Trustee will be the Authenticating Agent for the Notes.

 

(b)                                 Resignation and Termination.  An Authenticating Agent may resign by notifying the Indenture Trustee and the Owner Trustee.  The Indenture Trustee may terminate the agency of an Authenticating Agent by notifying the Authenticating Agent and the Owner Trustee.

 

Section 2.15.                          Note Paying Agents.

 

(a)                                 Appointment.  The Indenture Trustee may appoint one or more Note Paying Agents that meet the eligibility standards for the Indenture Trustee in Section 6.11(a).  If no Note Paying Agent is appointed, then the Indenture Trustee will be the Note Paying Agent for the Notes.  Each Note Paying Agent will have the power to make distributions from the Bank Accounts.

 

(b)                                 Resignation and Termination.  A Note Paying Agent may resign by notifying the Indenture Trustee, the Administrator and the Issuer.  The Indenture Trustee may terminate the

 

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agency of a Note Paying Agent by notifying the Note Paying Agent, the Administrator and the Issuer.

 

ARTICLE III
 COVENANTS, REPRESENTATIONS AND WARRANTIES

 

Section 3.1.                                 Payment of Principal and Interest.  The Issuer will duly and punctually pay the principal of and interest on the Notes according to the Notes and this Indenture.  Amounts withheld under the Code or State or local tax law by any Person from a payment to a Noteholder will be considered as having been paid by the Issuer to the Noteholder.

 

Section 3.2.                                 Maintenance of Office or Agency.  The Issuer will maintain an office or agency in the Borough of Manhattan, The City of New York, where Notes may be surrendered for registration of transfer or exchange, and where notices to and demands on the Issuer for the Notes and this Indenture may be served.  The Issuer initially appoints the Indenture Trustee to serve as its agent for those purposes.  The Issuer will promptly notify the Indenture Trustee of a change in the location of the office or agency.  If the Issuer fails to maintain the office or agency or fails to furnish the Indenture Trustee with the address of the office or agency, any surrender, notices and demands may be made or served at the Corporate Trust Office, and the Issuer appoints the Indenture Trustee as its agent to receive them.

 

Section 3.3.                                 Money for Payments To Be Held in Trust.

 

(a)                                 Payments on the Notes.  Payments on the Notes that are to be made from amounts withdrawn from the Bank Accounts will be made on behalf of the Issuer by the Indenture Trustee or a Note Paying Agent.  No amounts withdrawn for payments on the Notes may be paid over to the Issuer, except as stated in this Section 3.3.

 

(b)                                 Agreement by Note Paying Agent.  The Indenture Trustee will, and will cause each Note Paying Agent to, execute and deliver to the Indenture Trustee, an instrument in which the Note Paying Agent agrees with the Indenture Trustee to:

 

(i)                                     hold funds held by it for the payment of amounts due on the Notes in trust for the benefit of the Persons entitled to that money and pay it to those Persons under this Indenture;

 

(ii)                                  notify the Indenture Trustee of a default by the Issuer of which it has actual knowledge in the making of a required payment on the Notes;

 

(iii)                               during the continuance of a default, on the request of the Indenture Trustee, immediately pay to the Indenture Trustee money held by it in trust;

 

(iv)                              immediately resign as a Note Paying Agent and immediately pay to the Indenture Trustee amounts held by it in trust if it ceases to meet the eligibility standards in Section 6.11 for the Indenture Trustee; and

 

(v)                                 comply with all requirements of law for withholding and reporting requirements for payments on the Notes.

 

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(c)                                  Payment Direction.  The Issuer may by Issuer Order, direct a Note Paying Agent to pay to the Indenture Trustee money held in trust by the Note Paying Agent, which money will be held by the Indenture Trustee on the same terms as the Note Paying Agent.  On a Note Paying Agent’s payment of money held in trust to the Indenture Trustee, the Note Paying Agent will be released from liability for such amounts.

 

(d)                                 Unclaimed Money.  Subject to applicable law, money held by the Indenture Trustee or a Note Paying Agent in trust under this Section 3.3 which remains unclaimed for two years after it became due and payable will be discharged from the trust and paid to the Issuer on Issuer Request.  After discharge and payment, the Noteholder of the Note will, as an unsecured general creditor, look only to the Issuer for payment of the amount due and unclaimed, and the Indenture Trustee or the Note Paying Agent will be released from liability for such amounts.  However, the Indenture Trustee or the Note Paying Agent, before making the payment, will publish once, at the expense and direction of the Issuer, in a newspaper customarily published on each Business Day in the English language and of general circulation in The City of New York, notice that the money remains unclaimed and that after a date stated in the notice, which must be at least 30 days from the date of publication, any unclaimed balance of the money then remaining will be paid to the Issuer.  The Indenture Trustee will also use other reasonable means to notify the Noteholders of unclaimed payments.

 

Section 3.4.                                 Existence.  The Issuer will maintain its existence as a statutory trust under the Delaware Statutory Trust Act and will obtain and maintain its qualification in each jurisdiction in which the qualification is or will be necessary to protect the validity and enforceability of this Indenture, the Notes and the Collateral.

 

Section 3.5.                                 Protection of Collateral.

 

(a)                                 Amendments and Financing Statements.  The Issuer will (i) execute and deliver amendments to this Indenture and other documents, (ii) file or authorize and cause to be filed financing statements and amendments and continuations of those financing statements and (iii) take other action necessary or advisable to:

 

(A)                               maintain or preserve the Lien and security interest (and the priority of the security interest) of this Indenture;

 

(B)                               perfect, maintain perfection, publish notice of or protect the validity of a Grant made or to be made by this Indenture;

 

(C)                               enforce the Collateral; or

 

(D)                               maintain and defend title to the Collateral and the rights of the Indenture Trustee and the Secured Parties in the Collateral against the claims of all Persons subject to Permitted Liens and the Transaction Documents.

 

(b)                                 Authorization to File.  The Issuer authorizes the Administrator and the Indenture Trustee to file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices as the Administrator or the Indenture Trustee may determine necessary or advisable to perfect the Indenture Trustee’s interest in the Collateral.  The

 

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financing and continuation statements may describe the Collateral as the Administrator or the Indenture Trustee may reasonably determine to perfect the Indenture Trustee’s interest in the Collateral.  The Administrator or the Indenture Trustee will promptly deliver to the Issuer file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.

 

(c)                                  Indenture Trustee Not Obligated.  The Indenture Trustee not obligated to (i) make a determination of whether filing financing or continuation statements, or amendments to the statements, is required or (ii) file any financing or continuation statements, or amendments to the statements, and will not be liable for failure to do so.

 

Section 3.6.                                 Performance of Obligations.

 

(a)                                 Performance of Obligations.  The Issuer will perform all of its obligations under the Transaction Documents and documents included in the Collateral.

 

(b)                                 Subcontracting.  The Issuer may contract with other Persons to assist it in performing its obligations under this Indenture.  Initially, the Issuer has contracted with the Servicer and the Administrator to assist the Issuer in performing its obligations under this Indenture.

 

(c)                                  Reference Pool Servicer Termination Event.  If the Issuer has knowledge of a Reference Pool Servicer Termination Event for the 20  -   Reference Pool, the Issuer will notify the Indenture Trustee and the Rating Agencies of the event and any action the Issuer is taking to correct the situation.  If a Reference Pool Servicer Termination Event results from the failure of the Servicer to perform its obligations under the Servicing Supplement and the Servicing Agreement, the Issuer will take reasonable steps available to cause the Servicer to correct the failure.

 

Section 3.7.                                 Negative Covenants.  So long as Notes are Outstanding, the Issuer will not, except as permitted in the Transaction Documents:

 

(a)                                 Dispose of Collateral.  Sell, transfer, exchange or dispose of the Collateral unless directed to do so by the Indenture Trustee;

 

(b)                                 No Release of Material Obligations.  Take action, and will use its commercially reasonable efforts to prevent any action from being taken by others, that would release any Person from any material obligation under a document included in the Collateral or that would impair the validity or enforceability of the Collateral or a document included in the Collateral;

 

(c)                                  Set-off.  Claim a credit on, or make a deduction from the payments of principal or interest on, the Notes (other than amounts withheld from payments under applicable law) or assert a claim against a Noteholder by reason of the payment of the taxes levied or assessed on the Issuer or the Collateral;

 

(d)                                 Dissolve or Liquidate.  Dissolve or liquidate;

 

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(e)                                  Liens.  Permit (i) the validity or effectiveness of this Indenture to be impaired, or permit the Lien of this Indenture to be amended, subordinated, terminated or discharged, or permit a Person to be released from obligations under this Indenture except in each case as permitted by this Indenture, (ii) any Lien, other than Permitted Liens, to be created on or extend to the Collateral or (iii) the Lien of this Indenture not to be a valid first priority security interest in the Collateral, other than Permitted Liens; or

 

(f)                                   Modification of Collateral.  Subject to Article IX, amend, modify, waive, terminate or surrender any Collateral or the Transaction Documents without the consent of the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Notes and notifying the Rating Agencies.

 

Section 3.8.                                 Opinions on Collateral.

 

(a)                                 Opinion on Recording.  If this Indenture is subject to recording, the Issuer, at its expense, will record it and deliver an Opinion of Counsel to the Indenture Trustee stating that the recording is necessary either for the protection of the Secured Parties or for the enforcement of a right or remedy Granted to the Indenture Trustee under this Indenture.

 

(b)                                 Opinion on Perfection.  On the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of Counsel stating that this Indenture and all financing statements have been properly recorded or filed to perfect the Lien created by this Indenture, or stating that in the opinion of that counsel no action is necessary to perfect the Lien.

 

(c)                                  Annual Opinion.  On or before April 30 of each year, starting in the year after the Closing Date, the Issuer will furnish to the Indenture Trustee an Opinion of Counsel either (i) stating that, in the opinion of that counsel, all action has been taken for the recording, filing, re-recording and refiling of this Indenture and all financing statements and continuation statements to maintain the Lien of this Indenture or (ii) stating that in the opinion of that counsel no action is necessary to maintain the Lien.

 

Section 3.9.                                 Annual Certificate of Compliance.  The Issuer will deliver to the Indenture Trustee within 90 days after the end of each year, starting in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Issuer, stating that (a) a review of the Issuer’s activities and of its performance under this Indenture during the prior year has been made under a Responsible Person’s supervision and (b) to the Responsible Person’s knowledge, based on the review, the Issuer has fulfilled in all material respects its obligations under this Indenture throughout the prior year or, if there has been a failure to fulfill an obligation in any material respect, stating each failure known to the Responsible Person and the nature and status of the failure.  A copy of the Officer’s Certificate may be obtained by any Noteholder or Person certifying it is a Note Owner by a request to the Indenture Trustee at its Corporate Trust Office.  The Issuer’s obligation to deliver an Officer’s Certificate under this Section 3.9 will terminate on the payment in full of the Notes.

 

Section 3.10.                          Merger and Consolidation; Transfer of Assets.  The Issuer will not merge or consolidate with or into any other Person or transfer all or substantially all of its assets, unless:

 

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(a)                                 Surviving Person.  The Person (if other than the Issuer) formed by or surviving the merger or consolidation, or that acquires those assets, (i) is organized and existing under the laws of the United States or any State and (ii) assumes, by an indenture supplemental to this Indenture (unless the assumption happens by operation of law), executed and delivered to the Indenture Trustee, in form reasonably satisfactory to the Indenture Trustee, the due and punctual payment of the principal of and interest on the Notes and the performance of the other obligations under this Indenture and the other Transaction Documents to be performed by the Issuer;

 

(b)                                 Subordination.  For a transfer of the assets included in the Collateral, the Person who acquires those assets agrees by means of the supplemental indenture executed and delivered to the Indenture Trustee that (i) all right, title and interest transferred will be subject and subordinate to the rights of the Noteholders, (ii) unless stated in the supplemental indenture, that Person will indemnify the Issuer for fees, expenses, losses, damages and liabilities (including fees and expenses of defending itself against any loss, damage or liability) related to this Indenture and the Notes and (iii) that Person will make all necessary filings, including filings with the Securities and Exchange Commission required by the Exchange Act for the Notes;

 

(c)                                  No Default or Event of Default.  Immediately after giving effect to the merger, consolidation or transfer, no Default or Event of Default will have occurred and be continuing;

 

(d)                                 Rating Agency Condition.  The Rating Agency Condition has been satisfied for the merger, consolidation or transfer;

 

(e)                                  Opinion.  The Issuer has received an Opinion of Counsel (with a copy to the Indenture Trustee) stating that the merger, consolidation or transfer will not cause (i) any security issued by the Issuer to be deemed sold or exchanged for purposes of Section 1001 of the Code or (ii) the Issuer or a Titling Company to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes;

 

(f)                                   Actions.  Any action necessary to maintain the Lien and security interest Granted by this Indenture has been taken; and

 

(g)                                  Conditions.  The Issuer has delivered to the Depositor, the Servicer, the Owner Trustee and the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel each stating that the merger, consolidation or transfer and the supplemental indenture comply with this Article III and that all the conditions in this Indenture for the merger, consolidation or transfer have been satisfied.

 

Section 3.11.                          Successor or Transferee.  On a merger or consolidation of the Issuer or a transfer under Section 3.10, (a) the Person formed by or surviving the merger or consolidation (if other than the Issuer) will succeed to, and be substituted for, and may exercise the rights and powers of, the Issuer under this Indenture with the same effect as if that Person had been named as the Issuer in this Indenture and (b) for a transfer of the assets of the Issuer under Section 3.10, the predecessor Issuer will be released from its obligations under this Indenture to be performed by the successor Issuer for the Notes immediately on receipt of notice by the Indenture Trustee stating that the Issuer is to be released.

 

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Section 3.12.                          No Other Activities.  The Issuer will not engage in activities other than financing, acquiring, owning and pledging the Trust Property as described in the Transaction Documents and activities incidental to those activities.

 

Section 3.13.                          Further Acts and Documents.  On request of the Indenture Trustee, the Issuer will take action and execute and deliver additional documents reasonably required to perform and carry out the purposes of this Indenture.

 

Section 3.14.                          Restricted Payments.

 

(a)                                 No Set-off.  The Issuer will not, directly or indirectly, (i) make payments (by reduction of capital or otherwise) to the Owner Trustee or the holder of the Residual Interest, (ii) redeem, purchase, retire or acquire for value an ownership interest in the Issuer or (iii) set aside or segregate amounts for those purposes, except as permitted under this Indenture and the other Transaction Documents.

 

(b)                                 No Other Payments.  The Issuer will not, directly or indirectly, make payments to or distributions from the Collection Account except according to the Transaction Documents.

 

Section 3.15.                          Notice of Events of Default.  The Issuer will notify the Indenture Trustee, the Servicer and the Rating Agencies as soon as practicable and within five Business Days after a Responsible Person of the Issuer has knowledge of an Event of Default.

 

Section 3.16.                          Review of Issuer’s Records.  The Issuer will maintain records and documents relating to its performance under this Indenture according to its customary business practices.  On reasonable request not more than once during any year, the Issuer will give the Indenture Trustee (or its representatives) access to the records and documents to conduct a review of the Issuer’s performance under this Indenture.  Any access or review will be conducted at the Issuer’s offices during its normal business hours at a time reasonably convenient to the Issuer and in a manner that will minimize disruption to its business operations.  Any access or review will be subject to the Issuer’s confidentiality and privacy policies.

 

Section 3.17.                          Issuer’s Representations and Warranties.  The Issuer represents and warrants to the Indenture Trustee as of the Closing Date:

 

(a)                                 Organization and Qualification.  The Issuer is duly formed and validly existing as a statutory trust in good standing under the laws of the State of Delaware.

 

(b)                                 Power, Authority and Enforceability.  The Issuer has the power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.  The Issuer has authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  The Transaction Documents to which it is a party are the legal, valid and binding obligation of the Issuer enforceable against the Issuer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                                  No Conflicts and No Violation.  The completion of the transactions contemplated by the Transaction Documents to which it is a party and the performance of its obligations under

 

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such documents will not (i) conflict with, or be a breach or default under any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Issuer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Issuer’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document (other than this Indenture), (iii) violate the Trust Agreement or (iv) violate a law or, to the Issuer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties that applies to the Issuer, which, in each case, would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(d)                                 No Proceedings.  To the Issuer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties (i) asserting the invalidity of the Transaction Documents or the Notes, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents, (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under, or the validity or enforceability of, the Transaction Documents or the Notes or (iv) relating to the Issuer that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for U.S. federal income or Applicable Tax State income or franchise tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than the proceedings that, to the Issuer’s knowledge, would not reasonably be expected to have a material adverse effect on the Issuer, the performance by the Issuer of its obligations under, or the validity and enforceability of, the Transaction Documents or the Notes or the tax treatment of the Issuer or the Notes.

 

(e)                                  No Investment Company.  The Issuer is not an “investment company” as defined in the Investment Company Act.  In making this determination, the Issuer is relying on the exemption in Rule 3a-7 of the Investment Company Act, although other exclusions or exemptions may also be available to the Issuer.

 

(f)                                   Volcker Rule.  The Issuer is structured not to be a “covered fund” under the regulations adopted to implement Section 619 of the Dodd-Frank Wall Street Reform and Consumer Protection Act, commonly known as the “Volcker Rule.”

 

Section 3.18.                          Issuer’s Representations and Warranties About Security Interest.  The Issuer represents and warrants to the Indenture Trustee as of the Closing Date, which representations and warranties will survive the termination of this Indenture and may not be waived by the Indenture Trustee:

 

(a)                                 Valid Security Interest.  This Indenture creates a valid and continuing security interest (as defined in the applicable UCC) in the Collateral in favor of the Indenture Trustee which is prior to all other Liens, other than Permitted Liens, and is enforceable against creditors of and purchasers from the Issuer.

 

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(b)                                 Type.  The Collateral (other than those Permitted Investments which have been credited to a Securities Account) is “certificated securities,” “instruments” or “general intangibles” within the meaning of the applicable UCC.

 

(c)                                  Good Title.  The Issuer owns and has good title to the Collateral free and clear of any Lien, other than Permitted Liens.  The executed 20    -    Exchange Note has been delivered to the Indenture Trustee.  The Issuer has received all consents and approvals required by the terms of the Collateral to Grant to the Indenture Trustee all of its right, title and interest in the Collateral, except if a requirement for consent or approval is made ineffective under the applicable UCC.

 

(d)                                 Filing Financing Statements.  The Issuer has caused, or will cause within ten days after the Closing Date, the filing of all appropriate financing statements in the proper filing office in the appropriate jurisdictions under applicable law to perfect the security interest Granted in the Collateral to the Indenture Trustee under this Indenture.  All financing statements filed or to be filed against the Issuer in favor of the Indenture Trustee under this Indenture describing the Collateral will contain the following statement:  “A purchase of or grant of a security interest in Collateral described in this financing statement will violate the rights of the Secured Parties. “

 

(e)                                  No Other Sale, Grant or Financing Statements.  Other than the security interest Granted to the Indenture Trustee under this Indenture, the Issuer has not sold or Granted a security interest in any of the Collateral.  The Issuer has not authorized the filing of and is not aware of any financing statements against the Issuer that include a description of collateral covering any of the Collateral, other than financing statements relating to the security interest Granted to the Indenture Trustee under this Indenture.  The Issuer is not aware of any judgment or tax Lien filings against it.

 

(f)                                   Securities Account.  All Permitted Investments have been and will be credited to a Securities Account.  The securities intermediary for each Securities Account has agreed to treat all assets credited to the Securities Accounts as “financial assets” within the meaning of the applicable UCC.

 

(g)                                  Securities Intermediary Agreement.  The Issuer has delivered to the Indenture Trustee a fully executed agreement under which the securities intermediary has agreed to comply with all instructions originated by the Indenture Trustee relating to the Securities Accounts without further consent by the Issuer.

 

(h)                                 Name of Securities Accounts.  The Securities Accounts are not in the name of a Person other than the Issuer or the Indenture Trustee.  The Issuer has not consented to the securities intermediary of a Securities Account complying with entitlement orders of a Person other than the Indenture Trustee.

 

Section 3.19.                          [Calculation Agent].

 

(a)                                 [Appointment.  The Issuer agrees that for so long as the Floating Rate Notes are Outstanding there will be an agent appointed to calculate LIBOR for each Interest Period (the “Calculation Agent”).  The Issuer appoints                        as Calculation Agent only for

 

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the purposes of determining LIBOR for each Interest Period and                   accepts the appointment.  The Calculation Agent may be removed by the Issuer at any time.  If the Calculation Agent is unable or unwilling to act as Calculation Agent or is removed by the Issuer, the Issuer will promptly appoint as a replacement Calculation Agent a leading bank engaged in transactions in Eurodollar deposits in the international Eurodollar market and not an Affiliate of the Issuer or its Affiliates.  The Calculation Agent may not resign without a replacement having been duly appointed.

 

(b)                                 LIBOR Determination.  On each LIBOR Determination Date, the Calculation Agent will notify the Servicer, the Issuer and the Administrator by email of LIBOR for the related Interest Period.  All calculations of LIBOR for the Floating Rate Notes by the Calculation Agent, in the absence of manifest error, will be conclusive and binding on the Noteholders.]

 

ARTICLE IV
 SATISFACTION AND DISCHARGE

 

Section 4.1.                                 Satisfaction and Discharge of Indenture.

 

(a)                                 Conditions to Satisfaction and Discharge.  Except as stated in Section 4.1(c), this Indenture will cease to be of further effect for the Notes if:

 

(i)                                     either (A) the Notes that have been authenticated and delivered (other than (1) Notes that have been destroyed, lost or stolen and that have been replaced or paid under Section 2.7 and (2) Notes for which payment money has been deposited in trust or segregated and held in trust by the Issuer and later paid to the Issuer or discharged from the trust under Section 3.3) have been delivered to the Indenture Trustee for cancellation or (B) the Notes not delivered to the Indenture Trustee for cancellation have become due and payable and the Issuer has deposited or caused to be deposited with the Indenture Trustee money in trust in an amount sufficient to pay and discharge the outstanding principal amount of the Notes and interest accrued on the Notes on the Redemption Date;

 

(ii)                                  the Issuer has paid or caused to be paid all money payable by it under the Transaction Documents; and

 

(iii)                               the Issuer has delivered to the Indenture Trustee an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.4.

 

(b)                                 Acknowledgement of Satisfaction and Discharge.  After the satisfaction and discharge of the Indenture under Section 4.1(a), the Indenture Trustee will (i) by Issuer Order and at the expense of the Issuer, execute documents acknowledging satisfaction and discharge of this Indenture and (ii) at the request of the Owner Trustee, the Indenture Trustee will deliver to the Owner Trustee a certificate of a Responsible Person stating that all Noteholders have been paid in full.

 

(c)                                  Continuing Rights and Obligations.  After the satisfaction and discharge of this Indenture, this Indenture will continue for (i) rights of registration of transfer and exchange, (ii) replacement of mutilated, destroyed, lost or stolen Notes, (iii) the rights of the Noteholders to

 

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receive payments of principal of and interest on the Notes, (iv) the obligations of the Indenture Trustee and any Note Paying Agent under Section 3.3, (v) the rights, obligations and immunities of the Indenture Trustee under this Indenture and (vi) the rights of the Secured Parties as beneficiaries of this Indenture in the property deposited with the Indenture Trustee payable to them for a period of two years after the satisfaction and discharge.

 

ARTICLE V
 EVENTS OF DEFAULT; REMEDIES

 

Section 5.1.                                 Events of Default.

 

(a)                                 Events of Default.  The occurrence of one of the following events will be an event of default under this Indenture (each, an “Event of Default”):

 

(i)                                     the Issuer fails to pay interest due on a Note of the Controlling Class on any Payment Date, and the failure continues for five days or more;

 

(ii)                                  the Issuer fails to pay the principal of a Note on its Final Scheduled Payment Date;

 

(iii)                               the Issuer fails to observe a material covenant or agreement of the Issuer in this Indenture (other than to pay interest on or principal of the Notes) or a representation or warranty of the Issuer made in this Indenture or in an Officer’s Certificate or other document delivered under this Indenture is incorrect in a material respect when made and, in each case, the failure or error continues for at least 60 days after the Issuer receives notice from the Indenture Trustee, or the Issuer and the Indenture Trustee receive notice from the Noteholders of at least 25% of the Note Balance of the Controlling Class, in each case, stating the failure or error, requiring it to be corrected and stating that the notice is a “Notice of Default”; or

 

(iv)                              an Insolvency Event of the Issuer occurs.

 

(b)                                 Issuer to Notify.  The Issuer will notify the Indenture Trustee within five Business Days after a Responsible Person of the Issuer has knowledge of the occurrence of a Default under Section 5.1(a)(iii), which notice will describe the Default, the status of the Default and what action the Issuer is taking to correct the Default.  The Issuer will deliver a copy of the notice to each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

 

(c)                                  Indenture Trustee to Notify.  The Indenture Trustee will notify the Noteholders within five Business Days after a Responsible Person of the Indenture Trustee has knowledge of the occurrence of an Event of Default.

 

Section 5.2.                                 Acceleration of Maturity; Rescission.

 

(a)                                 Acceleration.  If an Event of Default occurs and is continuing, the Indenture Trustee or the Noteholders of a majority of the Note Balance of the Controlling Class may declare the Notes to be accelerated by notifying the Issuer (and to the Indenture Trustee if given by the Noteholders).  On acceleration, the unpaid Note Balance of the Notes, together with

 

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accrued and unpaid interest, will become immediately due and payable.  If an Event of Default in Section 5.1(a)(iv) occurs, all unpaid principal of and accrued and unpaid interest on the Notes, and all other amounts payable under this Indenture, will automatically become immediately due and payable without a declaration or other act of the Indenture Trustee or a Noteholder.  On the declaration of acceleration or automatic acceleration, the Indenture Trustee will promptly notify each Noteholder and each Qualified Institution (if not the Indenture Trustee) maintaining a Bank Account.

 

(b)                                 Rescission of Acceleration.  The Noteholders of a majority of the Note Balance of the Controlling Class, by notifying the Issuer and the Indenture Trustee, may rescind a declaration of acceleration before a judgment or decree for payment of the amount due has been obtained by the Indenture Trustee as stated in this Article V if:

 

(i)                                     the Issuer has paid or deposited with the Indenture Trustee an amount sufficient to (A) pay the due and unpaid principal of and interest on the Notes and all other amounts that would then be due under this Indenture or on the Notes if the Event of Default giving rise to the acceleration had not occurred, (B) pay all amounts owed to the Indenture Trustee under Section 6.7 and (C) pay all other outstanding fees and expenses of the Issuer; and

 

(ii)                                  all Events of Default, other than the non-payment of the principal of the Notes that has become due solely by acceleration, have been corrected or waived under Section 5.14.

 

Section 5.3.                                 Collection of Indebtedness by Indenture Trustee.

 

(a)                                 Overdue Amounts.  If an Event of Default under Section 5.1(a)(i) or (ii) occurs and is continuing, the Issuer, on demand of the Indenture Trustee, will pay to the Indenture Trustee for the benefit of the Noteholders, the overdue amount with interest at the rate of interest then applicable to the Notes.

 

(b)                                 Collection Costs.  In addition, the Issuer will pay the costs of collection, including all amounts owed to the Indenture Trustee under Section 6.7.

 

(c)                                  Proceedings.  If the Issuer fails to pay those amounts on demand, the Indenture Trustee, in its own name and as trustee of an express trust, may start a Proceeding to collect the money due and unpaid, and may pursue the Proceeding to final judgment, and may enforce the judgment against the Issuer and collect the money due and unpaid in the manner provided by law out of the Collateral.

 

Section 5.4.                                 Trustee May File Proofs of Claim.

 

(a)                                 Proofs of Claim.  If there is a Proceeding involving the Issuer under the Bankruptcy Code or another bankruptcy, insolvency or other similar law, or in case a trustee, liquidator, receiver or similar official has been appointed for or taken possession of the Issuer or its property, the Indenture Trustee may:

 

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(i)                                     file a proof of claim for due and unpaid principal of and interest on the Notes and file other proofs of claim or documents necessary or advisable to have the claims of the Indenture Trustee on behalf of the Secured Parties allowed in the Proceedings or in other judicial proceedings involving the Issuer, its creditors and its property;

 

(ii)                                  unless prohibited by applicable law, vote on behalf of the Secured Parties in the election of a trustee, a standby trustee or a Person performing similar functions in the Proceedings; and

 

(iii)                               collect and receive any money or other property payable or deliverable on the claims and pay all amounts received on the claims of the Secured Parties, including the claims asserted by the Indenture Trustee on their behalf.

 

(b)                                 Authorization by Noteholders.  Each Noteholder authorizes a trustee, liquidator, receiver or similar official in a Proceeding to make payments to the Indenture Trustee and, if the Indenture Trustee consents to make payments directly to the Noteholders, to pay to the Indenture Trustee the amounts owed to the Indenture Trustee under Section 6.7.

 

(c)                                  No Right to Consent or Vote.  Except as permitted under Section 5.4(a)(ii), this Indenture (i) does not authorize the Indenture Trustee to authorize or consent to or vote for or accept or adopt on behalf of a Noteholder a plan of reorganization, arrangement, adjustment or composition affecting the Notes and (ii) does not limit the rights of a Noteholder to authorize the Indenture Trustee to vote on the claim of a Noteholder in the Proceeding.

 

Section 5.5.                                 Enforcement of Claims Without Possession of Notes.

 

(a)                                 Notes not Required.  The Indenture Trustee may enforce its rights and make claims under this Indenture, or under the Notes, without the possession of the Notes or the production of the Notes in a Proceeding.  A Proceeding started by the Indenture Trustee will be brought in its own name as trustee of an express trust, and any recovery of judgment will be for the benefit of the Secured Parties for which the judgment has been recovered.

 

(b)                                 Proceeding.  In any Proceeding brought by the Indenture Trustee (and any Proceeding involving the interpretation of this Indenture to which the Indenture Trustee is a party), the Indenture Trustee will be held to represent all the Secured Parties, and it will not be necessary to make any Secured Party, including a Noteholder, a party to the Proceeding.

 

Section 5.6.                                 Remedies; Priorities.

 

(a)                                 Remedies.  If the Notes have been accelerated under Section 5.2(a) and the declaration of acceleration has not been rescinded according to Section 5.2(b), the Indenture Trustee may do one or more of the following (subject to Section 5.7), and will at the direction of the Noteholders of a majority of the Note Balance of the Controlling Class:

 

(i)                                     start a Proceeding in its own name and as trustee of an express trust for the collection of all amounts then payable on the Notes or under this Indenture on the Notes, enforce any judgment obtained and collect from the Issuer money adjudged due;

 

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(ii)                                  start a Proceeding for the complete or partial foreclosure of this Indenture on the Collateral;

 

(iii)                               sell or liquidate all or any part of the Collateral or rights or interest in the Collateral at one or more public or private sales called and conducted in any manner permitted by law;

 

(iv)                              exercise any remedies of a secured party under the UCC; and

 

(v)                                 take any other action to protect and enforce the rights and remedies of the Indenture Trustee and the Noteholders.

 

(b)                                 Notice of Sale or Liquidation of Collateral.  The Indenture Trustee will notify each Noteholder and the Depositor of a sale or liquidation under Section 5.6(a)(iii) at least 15 days before the sale or liquidation.  A Noteholder, the Depositor or the Servicer may submit a bid during the sale or liquidation.

 

(c)                                  Limitation on Collateral Liquidation.  The Indenture Trustee may not sell or liquidate the Collateral unless:

 

(i)                                     the Event of Default is described in Section 5.1(a)(i) or (ii); or

 

(ii)                                  the Event of Default is described in Section 5.1(a)(iii) and:

 

(A)                               the Noteholders representing 100% of the Note Balance of the Notes consent to the sale or liquidation; or

 

(B)                               the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties including all principal of and accrued interest on the Notes;

 

(iii)                               the Event of Default is described in Section 5.1(a)(iv) and:

 

(A)                               the Noteholders representing 100% of the Note Balance of the Controlling Class consent to the sale or liquidation; or

 

(B)                               the proceeds of the sale or liquidation are expected to be sufficient to pay in full all amounts owed by the Issuer to the Secured Parties including all principal of and accrued interest on the Notes; or

 

(C)                               the Indenture Trustee (1) determines that the Collateral will not continue to provide sufficient money for the payment of all amounts owed to the Secured Parties, as those payments would have become due if the Notes had not been accelerated and (2) obtains the consent of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class.

 

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In determining whether the condition in clause (ii)(B), (iii)(B) or (iii)(C) (1) above has been satisfied, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent investment banking firm or firm of certified public accountants on the expected proceeds or on the sufficiency of the Collateral for that purpose.

 

(d)                                 Proceeds of Collateral.  Any money or property collected by the Indenture Trustee following the sale or other liquidation of the Collateral under Section 5.6(a)(iii) will be deposited in the Collection Account for distribution according to Section 8.2(d) on the Payment Date after the Collection Period during which those amounts are collected.  In all other circumstances, Section 8.2(c) will continue to apply after an Event of Default.

 

Section 5.7.                                 Optional Preservation of Collateral.  If the Notes have been accelerated under Section 5.2(a) and the declaration of acceleration has not been rescinded, the Indenture Trustee may elect to maintain possession of the Collateral.  The Indenture Trustee will take into account that the 20  -   Collections and other amounts expected to be received on the Collateral must be sufficient to pay the unpaid principal of and accrued and unpaid interest on the Notes when determining whether or not to maintain possession of part of the Collateral.  In making this determination, the Indenture Trustee may rely on an opinion of a nationally-recognized Independent investment banking firm or firm of certified public accountants.

 

Section 5.8.                                 Limitation on Suits.

 

(a)                                 Proceedings.  No Noteholder has the right to start a Proceeding under this Indenture or for the appointment of a receiver or trustee, or for any other remedy under this Indenture, unless:

 

(i)                                     the Noteholder has notified the Indenture Trustee of a continuing Event of Default;

 

(ii)                                  the Noteholders of at least 25% of the Note Balance of the Controlling Class have requested the Indenture Trustee to start the Proceeding for the Event of Default in its own name as Indenture Trustee under this Indenture;

 

(iii)                               the Noteholders have offered reasonable indemnity satisfactory to the Indenture Trustee against fees, expenses, losses, damages, claims and liabilities that may be incurred by the Indenture Trustee, or its agents, counsel, accountants and experts, in complying with the request;

 

(iv)                              the Indenture Trustee has failed to start the Proceedings for 60 days after it receives the notice, request and offer of indemnity; and

 

(v)                                 the Noteholders of a majority of the Note Balance of the Controlling Class have not given the Indenture Trustee a direction inconsistent with the request during that 60 day period.

 

(b)                                 No Right to Impair.  No Noteholder has the right to impair the rights of another Noteholder or to seek or obtain priority or preference over another Noteholder or to enforce any right under this Indenture, except in the manner stated in this Indenture.

 

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(c)                                  Conflicting Requests.  If the Indenture Trustee receives conflicting requests under Section 5.8(a)(ii) from two or more groups of Noteholders, each evidencing less than a majority of the Note Balance of the Controlling Class, the Indenture Trustee will take the action requested by the Noteholders representing the greatest percentage of the Note Balance, notwithstanding any other provision of this Indenture.

 

Section 5.9.                                 Unconditional Rights to Receive Principal and Interest.  Each Noteholder has an absolute and unconditional right to receive payment of the principal of and interest on its Note on or after the due dates stated in the Note or in this Indenture (or, for redemption, on or after the Redemption Date) and to start a Proceeding for the enforcement of the payment according to Section 5.8.  Those rights may not be impaired or affected without the consent of the Noteholder.

 

Section 5.10.                          Restoration of Rights and Remedies.  If the Indenture Trustee or a Noteholder has started a Proceeding to enforce a right or remedy under this Indenture and the Proceeding has been discontinued or abandoned or has been determined adversely to the Indenture Trustee or to the Noteholder, then the Issuer, the Indenture Trustee and the Noteholders, subject to a determination in the Proceeding, will be restored to their former positions under this Indenture, and all rights and remedies of the Indenture Trustee and the Noteholders will continue as though no Proceeding had been started.

 

Section 5.11.                          Rights and Remedies Cumulative.  No right or remedy of the Indenture Trustee or the Noteholders under this Indenture is intended to be exclusive of any other right or remedy, and every right and remedy, if permitted by law, will be cumulative and in addition to every other right and remedy under this Indenture.  The exercise of a right or remedy will not prevent the exercise of another right or remedy at the same time.  The Indenture Trustee’s right to seek and recover judgment on the Notes or under this Indenture will not be affected by the seeking, obtaining or use of other relief under this Indenture.  Neither the Lien of this Indenture nor the rights or remedies of the Indenture Trustee or the Noteholders will be impaired by the recovery of a judgment by the Indenture Trustee against the Issuer or by the execution of a judgment on the Collateral.

 

Section 5.12.                          Delay or Omission Not a Waiver.  No delay or omission of the Indenture Trustee or a Noteholder to exercise a right or remedy after a Default or Event of Default will impair the right or remedy, or be a waiver of the Default or Event of Default.  Every right and remedy given by this Article V or by law to the Indenture Trustee or to the Noteholders may be exercised as often as deemed advisable by the Indenture Trustee or by the Noteholders.

 

Section 5.13.                          Control by Noteholders.  The Noteholders of a majority of the Note Balance of the Controlling Class have the right to direct the time, method and place of conducting a Proceeding for a remedy available to the Indenture Trustee for the Notes or exercising a trust or power of the Indenture Trustee, subject to the following terms.

 

(a)                                 No Conflict.  The direction does not conflict with law or with this Indenture.

 

(b)                                 Direction to Sell or Liquidate.  Except under Section 5.6(c), a direction to the Indenture Trustee to sell or liquidate the Collateral must have been made by the Noteholders of 100% of the Note Balance of the Controlling Class.

 

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(c)                                  Non-Unanimous Directions.  If the Indenture Trustee elects to retain the Collateral under Section 5.7, then a direction to the Indenture Trustee by Noteholders of less than 100% of the Note Balance of the Controlling Class to sell or liquidate the Collateral will not be effective.

 

(d)                                 Other Action.  The Indenture Trustee may take other action considered advisable by the Indenture Trustee that is not inconsistent with the direction from the Noteholders of a majority of the Note Balance of the Controlling Class.

 

(e)                                  Adverse Action.  The Indenture Trustee need not take an action that it determines might have a material adverse effect on the rights of the Noteholders not consenting to the action.

 

Section 5.14.                          Waiver of Defaults and Events of Default.

 

(a)                                 Waiver by Controlling Class.  The Noteholders of a majority of the Note Balance of the Controlling Class may waive a Default or Event of Default except an Event of Default (i) in the payment of principal of or interest on the Notes (other than an Event of Default relating to failure to pay principal due only by reason of acceleration) or (ii) for a covenant or term of this Indenture that cannot be amended, supplemented or modified without the consent of all the Noteholders.

 

(b)                                 Effect of Waiver.  On any waiver, the Default or Event of Default will be considered not to have occurred for all purposes of this Indenture.  No waiver will extend to any other Default or Event of Default or impair any right relating to any other Default or Event of Default.

 

Section 5.15.                          Agreement to Pay Costs.  The parties to this Indenture agree, and each Noteholder by its acceptance of a Note will be deemed to have agreed, that a court may in its discretion require, in a Proceeding for the enforcement of a right or remedy under this Indenture, or in a Proceeding against the Indenture Trustee for an action taken or not taken by it as Indenture Trustee, the filing by a party litigant in the Proceeding of an agreement to pay the costs of the Proceeding, and that the court may in its discretion assess reasonable costs, including reasonable attorneys’ fees, against a party litigant in the Proceeding.  This Section 5.15 will not apply to (a) a Proceeding started by the Indenture Trustee, (b) a Proceeding started by a Noteholder or group of Noteholders holding more than 10% of the Note Balance of the Notes (or for a Proceeding for the enforcement of a right or remedy under this Indenture that is started by the Controlling Class, holding more than 10% of the Note Balance of the Controlling Class) or (c) a Proceeding started by a Noteholder for the enforcement of the payment of principal of or interest on a Note on or after the respective due dates expressed in the Note and in this Indenture (or, for redemption, on or after the Redemption Date).

 

Section 5.16.                          Waiver of Stay or Extension Laws.  The Issuer agrees that it will not plead or in any manner claim or take the benefit of, a stay or extension that may affect the performance of its obligations under this Indenture, and the Issuer waives the benefit of such law.

 

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Section 5.17.                          Performance and Enforcement of Obligations.

 

(a)                                 Actions Requested by Indenture Trustee.  At the Administrator’s expense, the Issuer will promptly take any lawful action the Indenture Trustee requests to (i) compel the performance by (A) the Titling Companies, the Collateral Agent and the Servicer of their obligations to the Issuer under the Credit and Security Agreement, the Exchange Note Supplement, the Servicing Agreement or the Servicing Supplement or (B) the Depositor and Ford Credit of their obligations under the Exchange Note Purchase Agreement and the Exchange Note Sale Agreement and (ii) exercise any rights, remedies, powers, privileges and claims available to the Issuer under those agreements as directed by the Indenture Trustee.

 

(b)                                 Exercise by Indenture Trustee.  If an Event of Default has occurred and is continuing, (i) the Indenture Trustee may, and at the direction of the Noteholders of at least 66-2/3% of the Note Balance of the Controlling Class will, exercise all rights, remedies, powers, privileges and claims of the Issuer against (A) the Titling Companies, the Collateral Agent and the Servicer under the Credit and Security Agreement, the Exchange Note Supplement, the Servicing Agreement or the Servicing Supplement or (B) the Depositor and Ford Credit under the Exchange Note Purchase Agreement and the Exchange Note Sale Agreement, including the right or power to take any action to compel or secure performance or observance by those Persons of their obligations to the Issuer under those agreements, and to give a consent, request, notice, direction, approval, extension or waiver under those agreements and (ii) the right and power of the Issuer to take any such action will be suspended.

 

(c)                                  Indenture Trustee May Enforce Exchange Note.  The Indenture Trustee, acting at the direction of the Noteholders of a majority of the Note Balance of the Controlling Class, may exercise any rights, remedies, powers, privileges and claims available to the Issuer as holder of the 20  -   Exchange Note.

 

ARTICLE VI
 INDENTURE TRUSTEE

 

Section 6.1.                                 Indenture Trustee’s Obligations.

 

(a)                                 Standard of Care.  If an Event of Default has occurred and is continuing, the Indenture Trustee will exercise the rights and powers vested in it under this Indenture using the same degree of care and skill as a prudent person would use under the circumstances in the conduct of that person’s own affairs.

 

(b)                                 Obligations; Reliance.  Except during the continuance of an Event of Default:

 

(i)                                     the Indenture Trustee agrees to perform the obligations and only the obligations stated in this Indenture and no implied covenants or obligations are to be read into this Indenture; and

 

(ii)                                  in the absence of willful misconduct, bad faith or negligence on its part, the Indenture Trustee may conclusively rely, for the truth of the statements and the correctness of the opinions furnished to it, on certificates or opinions furnished to it and, if required by this Indenture, conforming to the requirements of this Indenture.  The

 

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Indenture Trustee will examine the certificates and opinions to determine whether or not they conform to the requirements, if any, of this Indenture.

 

(c)                                  Indenture Trustee Liable.  The Indenture Trustee will not be relieved from liability for its own willful misconduct, bad faith or negligence, except that:

 

(i)                                     this Section 6.1(c) does not limit the effect of Section 6.1(b);

 

(ii)                                  the Indenture Trustee will not be liable for an error of judgment made in good faith unless it is proved that the Indenture Trustee was negligent in determining the relevant facts; and

 

(iii)                               the Indenture Trustee will not be liable for any action taken or not taken in good faith according to this Indenture or a direction received by it under Sections 5.13 and 5.17(b).

 

(d)                                 Not Liable for Interest.  The Indenture Trustee will not be liable for interest on money received by it, except as the Indenture Trustee may agree in writing with the Issuer.

 

(e)                                  Not Required to Segregate.  The Indenture Trustee need not segregate any funds held by it in trust under this Indenture from other funds unless required by law, this Indenture, the Exchange Note Supplement or the Servicing Supplement.

 

(f)                                   Section Governs.  The terms of this Indenture relating to the conduct of the Indenture Trustee, the liability of the Indenture Trustee or giving protection to the Indenture Trustee are subject to this Section 6.1 and to the TIA.

 

(g)                                  No Deemed Knowledge.  The Indenture Trustee will not be deemed to have knowledge of a Default or any Event of Default unless (i) a Responsible Person of the Indenture Trustee has knowledge of the Default or Event of Default or (ii) it has actually received notice of the Default or Event of Default.

 

(h)                                 Enforceable in all Capacities.  The rights, privileges, protections, immunities and benefits given to the Indenture Trustee in this Article VI, including its right to be indemnified, are extended to, and will be enforceable by, the Indenture Trustee in each of its capacities under this Indenture and the other Transaction Documents, including as Authentication Agent, Calculation Agent, Note Registrar and Note Paying Agent under this Indenture and as a “securities intermediary” as defined in Section 8-102 of the UCC and a “bank” as defined in Section 9-102 of the UCC under the Account Control Agreement and the Titling Company Account Control Agreement.

 

Section 6.2.                                 Indenture Trustee’s Rights.

 

(a)                                 Reliance on Documents.  The Indenture Trustee may rely on any document believed by it to be genuine and which appears on its face to be properly executed and signed or presented by the proper Person.  The Indenture Trustee is not required to investigate any facts or matters or to verify any calculations or amounts stated in any document.  The Indenture Trustee

 

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will not be liable for any action taken or not taken in good faith in reliance on a document believed by it to be genuine.

 

(b)                                 Reliance on Opinions.  Before the Indenture Trustee acts or does not act, it may require and rely on an Officer’s Certificate or an Opinion of Counsel.  The Indenture Trustee will not be liable for any action taken or not taken in good faith in reliance on an Officer’s Certificate or Opinion of Counsel.

 

(c)                                  Use of Agents.  The Indenture Trustee may exercise its rights or powers under this Indenture or perform its obligations under this Indenture either directly or by or through agents or attorneys or a custodian or nominee.  The Indenture Trustee will not be responsible for misconduct or negligence on the part of, or for the supervision of, the agent, counsel, custodian or nominee appointed with due care by it under this Indenture.

 

(d)                                 Good Faith.  The Indenture Trustee will not be liable for any action taken or not taken in good faith which it believes to be authorized or within its rights or powers under this Indenture so long as the action taken or not taken does not amount to negligence.

 

(e)                                  Advice from Counsel.  The Indenture Trustee may consult with counsel, accountants or other experts, and the advice or opinion of counsel, accountants or other experts on any matters relating to this Indenture and the Notes will be full and complete authorization and protection from liability for any action taken or not taken by it under this Indenture in good faith and according to the advice or opinion of that counsel, accountant or expert.

 

(f)                                   Not Required to Pay or Risk Funds.  The Indenture Trustee is not obligated to (i) exercise the rights or powers under this Indenture or to pay or risk its own funds or incur any financial liability in the performance of its obligations under this Indenture if it has reasonable grounds to believe that payment of such funds or adequate indemnity satisfactory to it against that risk or liability is not reasonably assured or given to it or (ii) start, pursue or defend litigation, investigate any matter or honor the request, demand or direction of the Noteholders under this Indenture, other than requests, demands or directions relating to an asset representations review demand under Section 7.2, unless the Noteholders have offered to the Indenture Trustee reasonable security or indemnity satisfactory to it for the reasonable expenses that might be incurred by the Indenture Trustee in complying with the request or direction.

 

(g)                                  Force Majeure.  The Indenture Trustee will not be responsible or liable for a failure or delay in the performance of its obligations under this Indenture from or caused by, directly or indirectly, forces beyond its control, including strikes, work stoppages, acts of war, terrorism, civil or military disturbances, nuclear catastrophes, fires, floods, earthquakes, storms, hurricanes or other natural catastrophes and interruptions, loss or failures of mechanical, electronic or communication systems.  The Indenture Trustee will use reasonable efforts consistent with accepted practices in the banking industry to resume performance as soon as practicable under the circumstances.

 

(h)                                 Consequential Damages.  The Indenture Trustee will not be responsible or liable for special, punitive, indirect or consequential losses or damages (including lost profit), even if

 

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the Indenture Trustee has been advised of the likelihood of the loss or damage and regardless of the form of action.

 

Section 6.3.                                 Indenture Trustee’s Individual Rights.  The Indenture Trustee and any Note Paying Agent, Note Registrar or Authenticating Agent under this Indenture, in its individual or any other capacity, may become the owner or pledgee of Notes and may deal with the Issuer or its Affiliates with the same rights it would have if it were not Indenture Trustee or Note Paying Agent, Note Registrar or Authenticating Agent.

 

Section 6.4.                                 Indenture Trustee’s Disclaimer.  The Indenture Trustee will not be liable for (a) the validity or adequacy of this Indenture or the Notes, (b) the Issuer’s use of the proceeds from the Notes, or (c) any statement of the Issuer in this Indenture or in the Notes, other than the Indenture Trustee’s certificate of authentication, or any statement of the Issuer, the Depositor or the Servicer in any prospectus or offering document used for the offering or sale of the Notes.

 

Section 6.5.                                 Notice of Defaults.  Within 90 days after a Responsible Person of the Indenture Trustee has knowledge of, or actually receives notice of, a Default under this Indenture, the Indenture Trustee will mail as described in Section 313(c) of the TIA to each Noteholder, notice of the Default, unless the Default has been corrected or waived.  However, (a) except for a Default in the payment of principal of or interest on a Note, the Indenture Trustee may withhold the notice if and so long as a committee of its Responsible Persons in good faith determines that the withholding of the notice is in the interests of the Noteholders and (b) for a Default stated in Section 5.1(a)(iii), the Indenture Trustee will not notify the Noteholders until at least 30 days after a Responsible Person of the Indenture Trustee has knowledge of, or actually receives notice of, the Default.

 

Section 6.6.                                 Reports by Indenture Trustee.

 

(a)                                 Tax Information.  Starting in the year after the Closing Date, the Indenture Trustee will deliver or cause to be delivered to each Person who at any time during the prior calendar year was a Noteholder of record, a statement containing the information required to be given to a noteholder by an issuer of indebtedness, in the form and at the time required under the Code.

 

(b)                                 Monthly Investor Report.  On each Payment Date, the Indenture Trustee will deliver the Monthly Investor Report to each Noteholder of record as of the most recent Record Date (which delivery may be made by e-mail to the e-mail addresses in the Note Register without need for confirmation of receipt or by making the report available to the Noteholders through the Indenture Trustee’s website, which initially is located at                                                             ).

 

(c)                                  Annual Certificate of Compliance.  If required by Regulation AB and requested by the Depositor or the Servicer, the Indenture Trustee will deliver to the Administrator, the Issuer and the Servicer on or before March 1 of each year, starting in the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Indenture Trustee (i) stating that (A) a review of the Indenture Trustee’s activities during the prior year and of its performance under this Indenture has been made under the Responsible Person’s supervision and (B) to the

 

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Responsible Person’s knowledge, based on the review, the Indenture Trustee has fulfilled in all material respects its obligations under this Indenture throughout the prior year, or, if there has been a failure to fulfill the obligation in a material respect, stating the failure known to the Responsible Person and the nature and status of the failure and (ii) certifying to matters related to the Indenture Trustee as required under Form 10-K under the Exchange Act.

 

(d)                                 Annual Assessment of Compliance.  The Indenture Trustee will:

 

(i)                                     deliver to the Administrator, the Issuer and the Servicer, a report on its assessment of compliance with the minimum servicing criteria described in Items 1122(d)(2)(i), (2)(ii), (2)(iv), (2)(v), (3)(ii) (for payments only) and (3)(iv) of Regulation AB (the “Applicable Servicing Criteria”) during the prior year, including disclosure of any material instance of non-compliance identified by the Indenture Trustee, as required by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB; and

 

(ii)                                  cause a firm of registered public accountants to deliver to the Administrator, the Issuer and the Servicer an attestation report on the assessment of compliance with the Applicable Servicing Criteria for the prior year that (A) satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act, as applicable, (B) complies with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and (C) indicates that the firm is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act.

 

The reports will be delivered on or before March 1 of each year, starting in the year after the Closing Date, in a format suitable for filing with the Securities and Exchange Commission on EDGAR.

 

Section 6.7.                                 Compensation and Indemnity.

 

(a)                                 Fees.  The Issuer will pay the Indenture Trustee as compensation performing its obligations under this Indenture a fee separately agreed to by the Issuer and the Indenture Trustee.  The Indenture Trustee’s compensation will not be limited by law on compensation of a trustee of an express trust.  The Issuer will reimburse the Indenture Trustee for its reasonable expenses in performing its obligations under this Indenture and the other Transaction Documents, including costs of collection and the reasonable compensation and expenses of the Indenture Trustee’s agents, counsel, accountants and experts, but excluding expenses resulting from the Indenture Trustee’s willful misconduct, bad faith or negligence.

 

(b)                                 Indemnification.  The Issuer will indemnify the Indenture Trustee and its officers, directors, employees and agents (each, an “Indemnified Person”), for all fees, expenses, losses, damages and liabilities resulting from the administration of and the performance of its obligations under this Indenture and the other Transaction Documents (including the fees and expenses of defending itself against any loss, damage or liability and any fees and expenses incurred in connection with any proceedings brought by the Indemnified Person to enforce the Issuer’s indemnification obligations), but excluding any fee, expense, loss, damage or liability resulting from (i) the Indenture Trustee’s willful misconduct, bad faith or negligence or (ii) the Indenture Trustee’s breach of its representations or warranties in this Indenture.

 

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(c)                                  Proceedings.  If an Indemnified Person receives notice of the start of a Proceeding against it, the Indemnified Person will, if a claim under the Proceeding will be made under this Section 6.7, promptly notify the Issuer of the Proceeding.  The Issuer may participate in and assume the defense and settlement of the Proceeding at its expense.  If the Issuer notifies the Indemnified Person of its intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Issuer assumes the defense of the Proceeding in a manner reasonably satisfactory to the Indemnified Person, the Issuer will not be liable for legal expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Issuer and the Indemnified Person.  If there is a conflict, the Issuer will pay for the separate counsel to the Indemnified Person.  No settlement of the Proceeding may be made without the approval of the Issuer and the Indemnified Person, which approvals will not be unreasonably withheld.

 

(d)                                 Survival of Obligations.  The Issuer’s obligations to the Indenture Trustee under this Section 6.7 will survive the resignation or removal of the Indenture Trustee and the discharge of this Indenture.  Expenses incurred by the Indenture Trustee after the occurrence of a Default stated in Section 5.1(a)(iv) are intended to be expenses of administration under the Bankruptcy Code or another applicable federal or State bankruptcy, insolvency or similar law.

 

(e)                                  Repayment.  If the Issuer makes a payment to an Indemnified Person under Section 6.7(b) and the Indemnified Person later collects from others any amounts for which the payment was made, the Indemnified Person will promptly repay those amounts to the Issuer.

 

(f)                                   Available Funds.  Payments required to be made by the Issuer under this Section 6.7 will be made solely from funds used to make payments under this Indenture.

 

Section 6.8.                                 Resignation or Removal of Indenture Trustee.

 

(a)                                 Resignation.  The Indenture Trustee may resign by notifying the Issuer and the Administrator at least 30 days in advance.

 

(b)                                 Removal by Controlling Class.  The Noteholders of a majority of the Note Balance of the Controlling Class may, without cause, remove the Indenture Trustee and terminate its rights and obligations under this Indenture by notifying the Indenture Trustee and the Issuer at least 30 days in advance.

 

(c)                                  Removal by Issuer.  The Issuer must remove the Indenture Trustee and terminate its rights and obligations under this Indenture if:

 

(i)                                     the Indenture Trustee fails to comply with the eligibility requirements in Section 6.11(a);

 

(ii)                                  the Indenture Trustee becomes legally unable to act or incapable of acting as Indenture Trustee; or

 

(iii)                               an Insolvency Event for the Indenture Trustee occurs.

 

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(d)                                 Appointment of Successor.  If the Indenture Trustee resigns or is removed or if a vacancy exists in the office of the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class must appoint a successor Indenture Trustee promptly.  If a successor Indenture Trustee does not take office within 60 days after the Indenture Trustee resigns or is removed, the Indenture Trustee, the Issuer or the Noteholders of a majority of the Note Balance of the Controlling Class may petition a court of competent jurisdiction to appoint a successor Indenture Trustee.

 

(e)                                  Acceptance of Appointment.  No resignation or removal of the Indenture Trustee will become effective until the acceptance of appointment by the successor Indenture Trustee under this Section 6.8.  Any successor Indenture Trustee will deliver a written acceptance of its appointment to the Indenture Trustee, the Issuer and the Administrator.  The Issuer will continue to pay amounts owed to the predecessor Indenture Trustee for the period it was Indenture Trustee according to Sections 6.7 and 8.2.  The successor Indenture Trustee will notify the Secured Parties of its succession and the Issuer or Administrator will deliver a copy of the notice to the Rating Agencies.

 

(f)                                   Transition of Indenture Trustee Obligations.  On the resignation or removal of the Indenture Trustee becoming effective under Section 6.8(e), all rights, powers and obligations of the Indenture Trustee under this Indenture will become the rights, powers and obligations of the successor Indenture Trustee.  The predecessor Indenture Trustee will promptly transfer all property held by it as Indenture Trustee to the successor Indenture Trustee.  The Depositor will reimburse the Indenture Trustee and any successor Indenture Trustee for expenses related to the replacement of the Indenture Trustee, if those amounts have not been paid under Section 8.2.

 

Section 6.9.                                 Merger or Consolidation; Transfer of Assets.

 

(a)                                 Merger or Consolidation.  If the Indenture Trustee merges or consolidates with, or transfers its corporate trust business or assets to, any Person, the resulting, surviving or transferee Person will be the successor Indenture Trustee so long as that Person is qualified and eligible under Section 6.11(a).  The Indenture Trustee will promptly notify the Servicer and the Issuer of the succession, and the Issuer will notify the Rating Agencies.

 

(b)                                 Authentication of Notes.  If, at the time the successor by merger or consolidation to the Indenture Trustee succeeds to the trusts created by this Indenture, Notes have been authenticated but not delivered, the successor Indenture Trustee may adopt the certificate of authentication of a predecessor Indenture Trustee and deliver the Notes so authenticated.  If at that time any Notes have not been authenticated, the successor Indenture Trustee may authenticate the Notes.  In each of those cases, the certificates will have the same force and effect given in the Notes or in this Indenture as the certificate of the predecessor Indenture Trustee.

 

Section 6.10.                          Appointment of Separate Trustee or Co-Trustee.

 

(a)                                 Appointment.  For the purpose of meeting the legal requirement of a jurisdiction in which part of the Collateral may be located, after notifying the Issuer and the Servicer, the Indenture Trustee may appoint one or more Persons to act as a separate trustee or separate trustees, or co-trustee or co-trustees, of all or part of the Collateral, and to vest in those Persons,

 

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in this capacity and for the benefit of the Secured Parties, title to all or part of the Collateral, and, subject to this Section 6.10, rights, powers and obligations the Indenture Trustee may consider necessary or desirable.  No separate trustee or co-trustee will be required to be eligible as a successor trustee under Section 6.11(a) and no notice to the Secured Parties of the appointment of a separate trustee or co-trustee will be required under Section 6.8.

 

(b)                                 Terms of Appointment.  Every separate trustee and co-trustee will be appointed and act subject to the following:

 

(i)                                     all rights, powers and obligations of the Indenture Trustee will apply to and will be exercised or performed by the Indenture Trustee, or the Indenture Trustee and the separate trustee or co-trustee jointly (it being understood that the separate trustee or co-trustee will not be authorized to act separately without the Indenture Trustee joining in the act), except if under the law of a jurisdiction in which a particular act or acts are to be performed the Indenture Trustee will be incompetent or unqualified to perform those act or acts, in which event those acts will be exercised and performed singly by the separate trustee or co-trustee, but solely at the direction of the Indenture Trustee;

 

(ii)                                  no trustee will be personally liable by reason of an act or omission of another trustee under this Indenture; and

 

(iii)                               the Indenture Trustee may accept the resignation of or remove a separate trustee or co-trustee.

 

(c)                                  Notices.  Any notice, request or other writing given to the Indenture Trustee will be deemed to have been given to each appointed separate trustee and co-trustee, as effectively as if given to each of them.

 

(d)                                 Rights of Appointee.  Every document appointing a separate trustee or co-trustee will refer to this Indenture and the conditions of this Section 6.10.  Each separate trustee and co-trustee, on its acceptance of its appointment will have the rights, powers and obligations stated in its appointment, subject to this Indenture.  The document will be filed with the Indenture Trustee and the Indenture Trustee will provide the Issuer with a copy of each document.

 

(e)                                  Indenture Trustee as Agent.  A separate trustee or co-trustee may appoint the Indenture Trustee as its agent or attorney-in-fact with power and authority, if permitted by law, to do each lawful act under or for this Indenture on its behalf and in its name.  If a separate trustee or co-trustee becomes incapable of acting, resigns or is removed, all of its rights, powers and obligations will be exercised by the Indenture Trustee, if permitted by law, without the appointment of a new or successor trustee.

 

Section 6.11.                          Eligibility; Disqualification.

 

(a)                                 Eligibility Requirements.  The Indenture Trustee must satisfy the requirements of Section 310(a) of the TIA and must comply with Section 310(b) of the TIA.  The Indenture Trustee or its parent must have a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition and must have a long-term debt rating of investment grade by each of the Rating Agencies or must be acceptable to each of the Rating

 

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Agencies.  Promptly after the Indenture Trustee fails to satisfy the requirements in this Section 6.11(a) or ceases to be a Qualified Institution, the Indenture Trustee will notify the Issuer and the Servicer of the failure.

 

(b)                                 Resignation.  Within 90 days after the occurrence of an Event of Default that has not been corrected or waived, unless authorized by the Securities and Exchange Commission, the Indenture Trustee will resign for the Class A, Class B and/or Class C Notes according to Section 6.8, and the Issuer will appoint a successor Indenture Trustee for the Class A, Class B and/or Class C Notes, as applicable, so that there will be separate Indenture Trustees for the Class A, Class B and Class C Notes.  If the Indenture Trustee fails to comply with the prior sentence, the Indenture Trustee must comply with TIA Section 310(b)(ii) and (iii).

 

(c)                                  Successor.  If a successor Indenture Trustee is appointed for the Class A, Class B or Class C Notes under this Section 6.11, the Issuer, the predecessor Indenture Trustee and the successor Indenture Trustee will execute an indenture supplemental to this Indenture.  The supplemental indenture will contain:

 

(i)                                     the terms on which the successor Indenture Trustee accepts its appointment;

 

(ii)                                  the terms necessary or advisable to transfer and confirm to, the successor Indenture Trustee the rights, powers and obligations of the Indenture Trustee for the Notes for which the successor Indenture Trustee is appointed;

 

(iii)                               if the predecessor Indenture Trustee is not being removed as Indenture Trustee for all of the Notes, the terms necessary or desirable to confirm that the rights, powers and obligations of the predecessor Indenture Trustee for the Notes for which the predecessor Indenture Trustee is not being removed continue to be vested in the Indenture Trustee for these Notes; and

 

(iv)                              the terms necessary to provide for or facilitate the administration of the trusts under this Indenture by more than one Indenture Trustee.

 

(d)                                 Timing.  Nothing in this Indenture or in the supplemental indenture will make the Indenture Trustees co-trustees of the same trust and the Indenture Trustee will be a trustee of a trust or trusts under this Indenture separate and apart from the trust or trusts under this Indenture administered by another Indenture Trustee.  The indenture supplement will become effective on the removal of the predecessor Indenture Trustee.

 

Section 6.12.                          Preferential Collection of Claims Against Issuer.  The Indenture Trustee will comply with Section 311(a) of the TIA, excluding each creditor relationship listed in Section 311(b) of the TIA.  An Indenture Trustee who has resigned or been removed will be subject to Section 311(c) of the TIA.

 

Section 6.13.                          Inspection of Indenture Trustee: Access to Records.  The Indenture Trustee agrees that, with reasonable prior notice, it will permit authorized representatives of the Issuer, the Servicer or the Administrator, during the Indenture Trustee’s normal business hours, to have access to and review the facilities, processes, books of account, records, reports and other documents and materials of the Indenture

 

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Trustee relating to (a) the performance of the Indenture Trustee’s obligations under this Indenture, (b) the payments of fees and expenses of the Indenture Trustee for its performance and (c) any claim made by the Indenture Trustee under this Indenture.  In addition, the Indenture Trustee will permit those representatives to make copies and extracts of the books and records and to discuss them with the Indenture Trustee’s officers and employees.  Any access and review will be subject to the Indenture Trustee’s confidentiality and privacy policies.  The Indenture Trustee will maintain all relevant books, records, reports and other documents and materials for a period of two years after the termination of its obligations under this Indenture.

 

Section 6.14.                          Indenture Trustee’s Representations and Warranties.  The Indenture Trustee represents and warrants to the Issuer as of the Closing Date:

 

(a)                                 Organization and Qualification.  The Indenture Trustee is duly organized and, validly existing as a               [in good standing] under the laws of                          .  The Indenture Trustee [is qualified as a foreign banking corporation in good standing and] has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(b)                                 Power, Authority and Enforceability.  The Indenture Trustee has the power and authority to execute, deliver and perform its obligations under the Transaction Documents to which it is a party.  The Indenture Trustee has authorized the execution, delivery and performance of the Transaction Documents to which it is a party.  Each of the Transaction Documents to which it is a party is the legal, valid and binding obligation of the Indenture Trustee enforceable against the Indenture Trustee, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                                  No Conflicts and No Violation.  The completion of the transactions under the Transaction Documents to which it is a party, and the performance of its obligations under such documents, will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Indenture Trustee is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Indenture Trustee’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document, (iii) violate the Indenture Trustee’s organizational documents or by-laws or (iv) violate a law or, to the Indenture Trustee’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Indenture Trustee or its properties that applies to the Indenture Trustee, which, in each case, would reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under the Transaction Documents to which it is a party.

 

(d)                                 No Proceedings.  To the Indenture Trustee’s knowledge, there are no proceedings or investigations pending or threatened in writing before any federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the

 

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Indenture Trustee or its properties (i) asserting the invalidity of the Transaction Documents to which it is a party, (ii) seeking to prevent the issuance of the Notes or the completion of the transactions contemplated by the Transaction Documents to which it is a party or (iii) seeking a determination or ruling that would reasonably be expected to have a material adverse effect on the Indenture Trustee’s ability to perform its obligations under, or the validity or enforceability of, the Transaction Documents to which it is a party.

 

(e)                                  Eligibility.  The Indenture Trustee satisfies the requirements of Section 310(a) of the TIA and is a Qualified Institution.  The Indenture Trustee or its parent has a combined capital and surplus of at least $50,000,000 as stated in its most recent annual published report of condition.

 

(f)                                   Information Given by the Indenture Trustee.  The information given by the Indenture Trustee in any certificate delivered by a Responsible Person of the Indenture Trustee is true and correct in all material respects.

 

Section 6.15.                          Obligation to Update Disclosure.  The Indenture Trustee will notify and provide information, and certify that information in an Officer’s Certificate, to the Depositor on the occurrence of any event or condition relating to the Indenture Trustee or actions taken by the Indenture Trustee that (a) may be required to be disclosed by the Depositor under Item 2 (the institution of, material developments in, or termination of legal proceedings against                    that are material to the Noteholders) of Form 10-D under the Exchange Act within five days of the occurrence, (b) the Depositor reasonably requests of the Indenture Trustee that the Depositor, believes is necessary to comply with Regulation AB within five days of the request, (c) is required to be disclosed under Item 5 (submission of matters to a vote of the Noteholders) of Form 10-D under the Exchange Act within five days of a Responsible Person of the Indenture Trustee becoming aware of the submission, (d) is required to be disclosed under Item 6.02 (resignation, removal, replacement or substitution of                     as Indenture Trustee) or Item 6.04 (failure to make a distribution when required) of Form 8-K under the Exchange Act within two days of a Responsible Person of the Indenture Trustee becoming aware of the occurrence or (e) causes the information given by the Indenture Trustee in any certificate delivered by a Responsible Person of the Indenture Trustee to be untrue or incorrect in any material respect or is necessary to make the statements given by the Indenture Trustee in light of the circumstances in which they were made not misleading within five days of a Responsible Person of the Indenture Trustee becoming aware of the event or condition.

 

Section 6.16.                          Reporting of Reallocations of Leases and Leased Vehicles.  The Indenture Trustee will (a) notify the Sponsor, the Depositor and the Servicer, as soon as practicable and within five Business Days, of demands or requests received by a Responsible Person of the Indenture Trustee for the removal of a Lease and related Leased Vehicle from the 20  -   Reference Pool and reallocation of the Lease and Leased Vehicle to the Revolving Facility Pool under Section 3.3 of the Exchange Note Sale Agreement, (b) promptly on request by the Sponsor, the Depositor or the Servicer, provide to them other information reasonably requested to facilitate compliance by them with Rule 15Ga-1 under the Exchange Act, and Items 1104(e) and 1121(c) of Regulation AB and (c) if requested by the Sponsor, the Depositor or the Servicer, provide a written certification no later than 15 days following the end of any quarter or year that the Indenture Trustee has not received any repurchase demands or requests for that period, or if

 

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repurchase demands or requests have been received during that period, that the Indenture Trustee has provided all the information reasonably requested under clause (b) above.  The Indenture Trustee and the Issuer will not have responsibility or liability for a filing required to be made by a securitizer under the Exchange Act or Regulation AB.

 

ARTICLE VII
 NOTEHOLDER COMMUNICATIONS AND REPORTS

 

Section 7.1.                                 Noteholder Communications.

 

(a)                                 Noteholder List.  If the Indenture Trustee is not the Note Registrar, the Issuer will furnish a list of the names and addresses of the Noteholders of any Definitive Notes to the Indenture Trustee (a) not more than five days after each Record Date, as of that Record Date and (b) not more than 30 days after receipt by the Issuer of a request from the Indenture Trustee, as of a date not more than ten days before the time the list is furnished.  If the Indenture Trustee is the Note Registrar, the Indenture Trustee, on the request of the Owner Trustee, will furnish within ten days to the Owner Trustee a list of Noteholders of any Book-Entry Notes as of the date stated by the Owner Trustee.

 

(b)                                 Noteholder List Retention.  The Indenture Trustee will maintain a current list of the names and addresses of the Noteholders based on the most recent list furnished to the Indenture Trustee under Section 7.1(a) and the names and addresses of the Noteholders received by the Indenture Trustee in its capacity as Note Registrar.

 

(c)                                  TIA Communication.  A Noteholder may communicate under Section 312(b) of the TIA with other Noteholders about their rights under this Indenture or under the Notes.  The Issuer, the Indenture Trustee and the Note Registrar will have the protection of Section 312(c) of the TIA.

 

(d)                                 Noteholder Communications with Indenture Trustee.  A Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) may communicate with the Indenture Trustee and give notices and make requests and demands and give directions to the Indenture Trustee through the procedures of the Clearing Agency and by notifying the Indenture Trustee.  Any Note Owner must provide a written certification stating that the Note Owner is a beneficial owner of a Note, together with supporting documentation such as a trade confirmation, an account statement, a letter from a broker or dealer verifying ownership or another similar document evidencing ownership of a Note.  The Indenture Trustee will not be required to take action in response to requests, demands or directions of a Noteholder or a Note Owner, other than requests, demands or directions relating to an asset representations review demand under Section 7.2, unless the Noteholder or Note Owner has offered reasonable security or indemnity reasonably satisfactory to the Indenture Trustee to protect it against the fees and expenses that it may incur in complying with the request, demand or direction.

 

(e)                                  Communications between Noteholders.  A Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) that seeks to communicate with other Noteholders or Note Owners, as applicable, about a

 

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possible exercise of rights under this Indenture or the other Transaction Documents may send a request to the Issuer or the Servicer, on behalf of the Issuer, to include information regarding the communication in a Form 10-D to be filed by the Issuer with the Securities and Exchange Commission.  Each request must include (i) the name of the requesting Noteholder or Note Owner, (ii) the method by which other Noteholders or Note Owners, as applicable, may contact the requesting Noteholder or Note Owner and (iii) in the case of a Note Owner, a certification from that Person that it is a Note Owner, together with at least one form of documentation evidencing its ownership of a Note, including a trade confirmation, account statement, letter from a broker or dealer or similar document.  A Noteholder or Note Owner, as applicable, that delivers a request under this Section 7.1(e) will be deemed to have certified to the Issuer and the Servicer that its request to communicate with other Noteholders or Note Owners, as applicable, relates solely to a possible exercise of rights under this Indenture or the other Transaction Documents, and will not be used for other purposes.  The Issuer will promptly deliver any request to the Servicer.  On receipt of a request, the Servicer will include in the Form 10-D filed by the Issuer with the Securities and Exchange Commission for the Collection Period in which the request was received (A) a statement that the Issuer has received a request from a Noteholder or Note Owner, as applicable, that is interested in communicating with other Noteholders or Note Owners, as applicable, about a possible exercise of rights under this Indenture or the other Transaction Documents, (B) the name of the requesting Noteholder or Note Owner, (C) the date the request was received and (D) a description of the method by which the other Noteholders or Note Owners, as applicable, may contact the requesting Noteholder or Note Owner.

 

Section 7.2.                                 Noteholder Demand for Asset Representations Review.  If a Delinquency Trigger occurs, as reported on a Form 10-D, a Noteholder (if the Notes are represented by Definitive Notes) or a Note Owner (if the Notes are represented by Book-Entry Notes) may make a demand on the Indenture Trustee to cause a vote of the Noteholders or Note Owners, as applicable, about whether to direct the Asset Representations Reviewer to conduct a Review of the Review Leases under the Asset Representations Review Agreement.  In the case of a Note Owner, each demand must be accompanied by a certification from that Person that it is a Note Owner, together with at least one form of documentation evidencing its ownership of a Note, including a trade confirmation, account statement, letter from a broker or dealer or similar document.  If the Noteholders and Note Owners of at least 5% of the aggregate Note Balance of the Notes demand a vote within 90 days of the filing of the Form 10-D reporting the occurrence of the Delinquency Trigger, the Indenture Trustee will promptly request a vote of the Noteholders through the Clearing Agency process.  The vote will remain open until the 150th day after the filing of the Form 10-D.  Assuming a voting quorum of the Noteholders holding at least 5% of the aggregate Note Balance of the Notes is reached, if the Noteholders of a majority of the Note Balance of Notes voted to direct a Review, the Indenture Trustee will promptly send a Review Notice to the Asset Representations Reviewer and the Servicer under the Asset Representations Review Agreement directing the Asset Representations Reviewer to conduct the Review.

 

Section 7.3.                                 Reports by Issuer.

 

(a)                                 SEC Filings.  The Issuer will, or will cause the Administrator or the Servicer to:

 

(i)                                     file with the Securities and Exchange Commission (A) the annual reports and the information, documents and other reports (or copies or parts the Securities and

 

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Exchange Commission may prescribe) that the Issuer is required to file with the Securities and Exchange Commission under Section 13 or 15(d) of the Exchange Act, including annual reports on Form 10-K, monthly distribution reports on Form 10-D[ and monthly asset level data on Form ABS-EE], and (B) additional information, documents and reports about compliance by the Issuer with this Indenture required by the Securities and Exchange Commission;

 

(ii)                                  file with the Indenture Trustee, within 15 days after the Issuer is required to file the same with the Securities and Exchange Commission, copies of the annual reports and the information, documents or other reports filed with the Securities and Exchange Commission under Section 7.3(a)(i); and

 

(iii)                               supply to the Indenture Trustee the information, documents and reports (or summaries) required to be filed by the Issuer under Section 7.3(a)(i) and (ii) as may be required by rules and regulations prescribed by the Securities and Exchange Commission.

 

(b)                                 Documents and Reports to Noteholders.  The Indenture Trustee will mail to all Noteholders, as described in Section 313(c) of the TIA, the information, documents and reports (or summaries of such items) supplied to the Indenture Trustee under Section 7.3(a).

 

(c)                                  Fiscal Year.  The fiscal year of the Issuer will be the calendar year.

 

Section 7.4.                                 Reports by Indenture Trustee.

 

(a)                                 Annual Report.  Within 90 days after each April 15, starting in the year after the Closing Date, the Indenture Trustee will prepare and mail to each Noteholder a report dated as of April 15 of the applicable year that complies with Section 313(a) of the TIA, if the report is required under Section 313(a) of the TIA.  The Indenture Trustee will also prepare and mail to the Noteholders any report required under Section 313(b) of the TIA.  A report mailed to the Noteholders under this Section 7.4(a) will be mailed according to Section 313(c) of the TIA.

 

(b)                                 Filing.  The Indenture Trustee will file with the Securities and Exchange Commission a copy of each report delivered under Section 7.4(a) at the time of its mailing to the Noteholders.

 

ARTICLE VIII
 ACCOUNTS, DISTRIBUTIONS AND RELEASES

 

Section 8.1.                                 Collection of Funds.  Except as permitted under this Indenture, the Indenture Trustee may demand payment or delivery of, and will receive and collect, directly the funds and other property payable to or to be received by the Indenture Trustee under this Indenture, the Exchange Note Supplement and the Servicing Supplement.  The Indenture Trustee will apply the funds and other property received by it, and will make deposits to, and distributions from, the Bank Accounts, under this Indenture, the Exchange Note Supplement and the Servicing Supplement.

 

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Section 8.2.                                 Bank Accounts; Distributions.

 

(a)                                 Establishment.  On and after the Closing Date, the Indenture Trustee will maintain the Bank Accounts established by the Servicer under Section 4.1 of the Servicing Supplement.

 

(b)                                 Distributions from Collection Account.  Subject to Section 8.2(d), on each Payment Date the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) withdraw from the Collection Account and make deposits and payments, to the extent of Available Funds in the Collection Account for that Payment Date, in the following order of priority (pro rata within each priority level based on the amounts due except as otherwise stated):

 

(i)                                     first, to the payment of amounts, including indemnities, then due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer and expenses of the Issuer incurred according to the Transaction Documents, in each case, if not paid by the Depositor or the Administrator, up to a maximum of $        per year;

 

(ii)                                  second, to the Servicer, unpaid Administration Fees;

 

(iii)                               third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the prior Payment Date;

 

(iv)                              fourth, for allocation as principal under Section 8.2(c), the First Priority Principal Payment;

 

(v)                                 fifth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

 

(vi)                              sixth, for allocation as principal under Section 8.2(c), the Second Priority Principal Payment;

 

(vii)                           seventh, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

 

(viii)                        eighth, to the Reserve Account, the amount required to bring the amount in the Reserve Account up to the Required Reserve Amount after taking into account each deposit made to the Reserve Account on that Payment Date under Section 5.1(a)(iv) of the Exchange Note Supplement;

 

(ix)                              ninth, for allocation as principal under Section 8.2(c), the Regular Principal Payment;

 

(x)                                 tenth, to the payment of all amounts due to the Indenture Trustee, the Owner Trustee and the Asset Representations Reviewer and any expenses of the Issuer, in each case, if not paid by the Depositor or Administrator or under Section 8.2(b)(i) on that Payment Date; and

 

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(xi)                              eleventh, to the holder of the Residual Interest, any remaining amounts.

 

(c)                                  Distributions of Principal.  On each Payment Date, the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) pay any amounts allocated to principal under Section 8.2(b) in the following order of priority, in each case, applied pro rata according to the Note Balance of the Notes of that Class:

 

(i)                                     first, to the Noteholders of Class A-1 Notes in payment of principal until the Note Balance of the Class A-1 Notes has been reduced to zero;

 

(ii)                                  second, to the Noteholders of Class A-2[a] [and Class A-2b] Notes, pro rata based on the respective Note Balances], in payment of principal until the Note Balance of the Class A-2[a] [and Class A-2b] Notes has been reduced to zero;

 

(iii)                               third, to the Noteholders of Class A-3 Notes, in payment of principal until the Note Balance of the Class A-3 Notes has been reduced to zero;

 

(iv)                              fourth, to the Noteholders of Class A-4 Notes, in payment of principal until the Note Balance of the Class A-4 Notes has been reduced to zero;

 

(v)                                 fifth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes has been reduced to zero;

 

(vi)                              sixth, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes has been reduced to zero; and

 

(vii)                           seventh, to the holder of the Residual Interest, any remaining amounts.

 

(d)                                 Distributions Following Acceleration.  If the Notes are accelerated after an Event of Default, on each Payment Date starting with the Payment Date relating to the Collection Period in which the Notes are accelerated, the Indenture Trustee will (based on the information in the most recent Monthly Investor Report) withdraw from the Bank Accounts and make deposits and payments, to the extent of funds in the Bank Accounts for the related Collection Period, in the following order of priority (pro rata to the Persons within each priority level based on the amounts due except as stated):

 

(i)                                     first, to the payment of amounts, including indemnities, due to the Indenture Trustee, the Owner Trustee, the Asset Representations Reviewer and expenses of the Issuer incurred according to the Transaction Documents;

 

(ii)                                  second, to the Servicer, unpaid Administration Fees;

 

(iii)                               third, to the Noteholders of Class A Notes, the aggregate Accrued Note Interest for the Class A Notes, pro rata based on the Note Balances of the Class A Notes as of the end of the prior Payment Date;

 

(iv)                              fourth, to the Noteholders of Class A-1 Notes in payment of principal until the Note Balance of the Class A-1 Notes is reduced to zero;

 

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(v)                                 fifth, to the Noteholders of Class A-2[a] [and Class A-2b] Notes, in payment of principal until the Note Balance of the Class A-2[a] [and Class A-2b] Notes is reduced to zero;

 

(vi)                              sixth, to the Noteholders of Class A-3 Notes in payment of principal until the Note Balance of the Class A-3 Notes is reduced to zero;

 

(vii)                           seventh, to the Noteholders of Class A-4 Notes in payment of principal until the Note Balance of the Class A-4 Notes is reduced to zero;

 

(viii)                        eighth, to the Noteholders of Class B Notes, the Accrued Note Interest for the Class B Notes;

 

(ix)                              ninth, to the Noteholders of Class B Notes in payment of principal until the Note Balance of the Class B Notes is reduced to zero;

 

(x)                                 tenth, to the Noteholders of Class C Notes, the Accrued Note Interest for the Class C Notes;

 

(xi)                              eleventh, to the Noteholders of Class C Notes in payment of principal until the Note Balance of the Class C Notes is reduced to zero; and

 

(xii)                           twelfth, to the holder of the Residual Interest, any remaining amounts.

 

(e)                                  Subordination Agreement.  Each of (i) the subordination of interest payments to the Noteholders of the Class B Notes to the payment of any First Priority Principal Payment to the Noteholders of the Class A Notes and (ii) the subordination of interest payments to the Noteholders of the Class C Notes to the payment of any Second Priority Principal Payment to the Noteholders of the Class A Notes and the Class B Notes under Section 8.2(b) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.

 

Section 8.3.                                 Bank Accounts.

 

(a)                                 Limited Liability for Permitted Investments.  Subject to Section 6.1(c), the Indenture Trustee will not be liable for any insufficiency in Bank Accounts resulting from a loss on a Permitted Investment, except for losses attributable to the Indenture Trustee’s failure to make payments on the Permitted Investments issued by the Indenture Trustee, in its commercial capacity as principal obligor and not as trustee.  The Indenture Trustee is not obligated to monitor the activities of any Qualified Institution (unless the Qualified Institution is also the Indenture Trustee) and will not be liable for the actions or inactions of any Qualified Institution (unless the Qualified Institution is also the Indenture Trustee).

 

(b)                                 Notice to Qualified Institution.  A Responsible Person of the Indenture Trustee will notify the Qualified Institution maintaining the Bank Accounts (if not the Indenture Trustee) if an Event of Default has occurred and is continuing.

 

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Section 8.4.                                 Release of Collateral.

 

(a)                                 Release of Property.  The Indenture Trustee may, and when required by this Indenture will, release Collateral from the Lien of this Indenture, in each case, according to this Indenture.  Except under Sections 8.4(c), 8.4(d) and 10.1(c), the Indenture Trustee will release Collateral from the Lien of this Indenture only on receipt of an Issuer Request and an Officer’s Certificate and an Opinion of Counsel and (if required by the TIA) Independent Certificates according to Sections 314(c) and 314(d)(1) of the TIA meeting the requirements of Section 11.4.

 

(b)                                 Limited Security Interest.  The Issuer and the Indenture Trustee intend that the property in which a Lien is Granted under this Indenture will be limited to the 20  -   Exchange Note and the other Collateral as stated in the “Granting Clause” of this Indenture, and the Lien will not include direct rights in the Leases or Leased Vehicles or proceeds of the Leases or Leased Vehicles (other than for proceeds of the 20  -   Exchange Note) or other property of the Titling Companies.

 

(c)                                  Deemed Release.  The Indenture Trustee will be deemed to release, and does release, and each Noteholder or Note Owner by its acceptance of a Note or an interest or participation in a Note acknowledges that the Indenture Trustee will release Liens and other rights and interests it possesses, without further action of the parties, in, to and under:

 

(i)                                     each Lease and Leased Vehicle and all proceeds of the Lease and Leased Vehicle reallocated to the Revolving Facility Pool under Section 3.4(c) of the Exchange Note Purchase Agreement, Section 3.3(c) of the Exchange Note Sale Agreement or Section 3.3(f) of the Servicing Supplement, effective when the Lease and Leased Vehicle is deemed reallocated to the Revolving Facility Pool under the applicable Section;

 

(ii)                                  each Lease and Leased Vehicle (but not the proceeds of the sale or disposition of the Lease and Leased Vehicle) sold by the related Titling Company under Section 3.2(g) of the Servicing Agreement, effective when the Lease and Leased Vehicle is deemed sold and assigned by the Titling Company under that Section; and

 

(iii)                               each Leased Vehicle (and the proceeds of the sale or disposition of the Leased Vehicle released according to Section 3.3(b) of the Credit and Security Agreement and Section 4.2(d) of the Servicing Agreement) sold by the Servicer under Section 4.2 of the Servicing Agreement, effective when the Leased Vehicle is deemed sold and assigned by the related Titling Company under that Section.

 

(d)                                 Release of Funds.  When there are no Notes Outstanding and all amounts due from the Issuer to the Indenture Trustee have been paid in full under Section 6.7 or 10.1, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to those funds under this Indenture or other Transaction Documents, the funds then in the Bank Accounts under this Indenture.  The Indenture Trustee will release Collateral from the Lien of this Indenture under this Section 8.4(d) only on receipt of an Issuer Request and an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.4.

 

(e)                                  Termination Statements.  On receipt of an Issuer Request accompanied by an Officer’s Certificate and an Opinion of Counsel meeting the requirements of Section 11.4, the

 

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Indenture Trustee will execute termination statements and other documents to release Collateral as permitted by this Section 8.4 and Section 10.1.  No party relying on a document or authorization executed by the Indenture Trustee under this Article VIII is required to determine the Indenture Trustee’s authority, inquire into the satisfaction of conditions precedent or require evidence of the application of funds.

 

ARTICLE IX
 AMENDMENTS

 

Section 9.1.                                 Amendments Without Consent of Noteholders.

 

(a)                                 General Amendments.  Without the consent of the Noteholders but after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture:

 

(i)                                     to correct or expand the description of property subject to the Lien of this Indenture, or better to assure, convey and confirm to the Indenture Trustee property subject or required to be subjected to the Lien of this Indenture, or to subject additional property to the Lien of this Indenture;

 

(ii)                                  to evidence the succession of any other Person to the Issuer, and the assumption by the successor of the obligations of the Issuer in this Indenture and in the Notes;

 

(iii)                               to add to the covenants of the Issuer, for the benefit of the Noteholders, or to surrender a right or power given to the Issuer in this Indenture;

 

(iv)                              to transfer, assign, mortgage or pledge property to or with the Indenture Trustee;

 

(v)                                 to clarify an ambiguity, correct an error or correct or supplement any term in this Indenture inconsistent with another term in this Indenture or to add provisions which are not inconsistent with the provisions of this Indenture if the action does not have a material adverse effect on the interests of the Noteholders;

 

(vi)                              to evidence the acceptance of the appointment under this Indenture of a successor trustee and to add to or change this Indenture as necessary to facilitate the administration of the trusts under this Indenture by more than one trustee; or

 

(vii)                           to modify, eliminate or add to the terms of this Indenture to effect the qualification of this Indenture under the TIA and to add to this Indenture another terms required by the TIA.

 

(b)                                 Amendments without Material Adverse Effect.  Without the consent of the Noteholders, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture to add terms to, to change or eliminate the terms of, or to modify (other than the modifications in Section 9.2) the rights of the Noteholders under, this Indenture, if:

 

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(i)                                     the Issuer or the Administrator delivers, to the Indenture Trustee an Officer’s Certificate stating that the amendment will not have a material adverse effect on the Notes;

 

(ii)                                  the Issuer delivers an Opinion of Counsel to the Indenture Trustee stating that the amendment will not (A) cause a Note to be considered sold or exchanged for purposes of Section 1001 of the Code, (B) cause the Issuer or a Titling Company to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes or (C) adversely affect the treatment of the Notes as debt for U.S. federal income tax purposes; and

 

(iii)                               the Rating Agency Condition has been satisfied.

 

Section 9.2.                                 Amendments with Consent of Controlling Class.

 

(a)                                 Amendments.  With the consent of the Noteholders of a majority of the Note Balance of the Controlling Class and after notifying the Rating Agencies, the Issuer and the Indenture Trustee may, and when directed by Issuer Order will, amend this Indenture to add terms to, to change or eliminate the terms of, or to modify the rights of the Noteholders under, this Indenture if the Issuer delivers an Opinion of Counsel to the Indenture Trustee stating that the amendment will not (i) cause any Note to be considered sold or exchanged for purposes of Section 1001 of the Code or (ii) cause the Issuer or a Titling Company to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes.  However, no amendment, without the consent of each Noteholder of each Outstanding Note adversely affected by the amendment, will:

 

(A)                               modify or alter Section 9.1 or this Section 9.2;

 

(B)                               change (1) the Final Scheduled Payment Date or the date of payment of any installment of principal of or interest on a Note, (2) the principal amount of or interest rate on a Note, (3) the price at which the Notes may be redeemed, (4) the priority of payments on the Notes or relating to the application of collections on, or the proceeds of the sale of, the Collateral to payment of principal of or interest on the Notes, or change the place of payment where, or the currency in which, a Note or the interest on a Note is payable or (5) the right of the Noteholders to start Proceedings to enforce this Indenture;

 

(C)                               modify the percentage of the Note Balance of the Notes or the Controlling Class required for any action;

 

(D)                               modify or alter the definition of “Outstanding” or “Controlling Class”;

 

(E)                                modify the calculation of the amount of a payment of principal of and interest on a Note on a Payment Date; or

 

(F)                                 permit the creation of any Lien ranking prior or equal to the Lien of this Indenture on the Collateral, other than Permitted Liens, or, except as permitted by this Indenture or the other Transaction Documents, release the Lien of this Indenture on the Collateral.

 

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(b)                                 Noteholder Consent.  For any amendment to this Indenture or any other Transaction Document requiring the consent of the Noteholders, the Indenture Trustee will, when directed by Issuer Order, notify the Noteholders to request consent and follow its reasonable procedures to obtain consent.

 

Section 9.3.                                 Execution of Amendments.

 

(a)                                 Form; Authorization; Reliance.  Each amendment will be in form reasonably satisfactory to the Indenture Trustee.  The Indenture Trustee is authorized to execute the amendment and any other agreements required by the amendment.  For any amendment, the Issuer will deliver to the Indenture Trustee and the Owner Trustee, an Opinion of Counsel stating that the amendment is permitted by this Indenture and that all conditions to the amendment have been satisfied.

 

(b)                                 Indenture Trustee Not Obligated.  The Indenture Trustee is not obligated to, enter into an amendment that adversely affects the Indenture Trustee’s rights, powers, obligations, or liabilities under this Indenture.

 

(c)                                  Indenture Supplement not an Amendment.  An indenture supplement entered into under Section 6.11(c) will not be considered an amendment to this Indenture for purposes of this Article IX.

 

Section 9.4.                                 Effect of Amendment.  On the execution of an amendment under this Article IX, this Indenture will be amended by the amendment, and the amendment will be part of this Indenture for all purposes.  Every Noteholder of Notes authenticated and delivered before or after the amendment will be bound by the amendment.

 

Section 9.5.                                 Conformity with TIA.  Each amendment of this Indenture executed under this Article IX will conform to the requirements of the TIA as then in effect so long as this Indenture is qualified under the TIA.

 

Section 9.6.                                 Reference in Notes to Supplemental Indentures.  Notes authenticated and delivered after the execution of an amendment under this Article IX may, and if required by the Indenture Trustee will, bear a notation about the amendment.  New Notes modified to conform to an amendment may be prepared and executed by the Issuer and authenticated and delivered by the Indenture Trustee in exchange for the Outstanding Notes.

 

ARTICLE X
 REDEMPTION OF NOTES

 

Section 10.1.                          Redemption.

 

(a)                                 Optional Redemption.  The Notes may be redeemed in whole, but not in part, at the direction of the Servicer on any Payment Date on which the Servicer exercises its option to purchase the 20  -   Exchange Note under Section 5.1 of the Servicing Supplement.  If the Notes are to be redeemed under this Section 10.1, the Servicer or the Issuer will notify the Indenture Trustee and the Rating Agencies at least ten days before the Redemption Date.  After

 

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the Servicer or the Issuer notifies the Indenture Trustee, the Indenture Trustee will promptly notify the Noteholders:

 

(i)                                     of the Redemption Date;

 

(ii)                                  of the Note Redemption Price;

 

(iii)                               of the outstanding Note Balance of each Class of the Notes to be redeemed and that the Notes plus accrued and unpaid interest on the Notes to the Redemption Date will be paid in full;

 

(iv)                              of the place to surrender the Notes for final payment (which will be the office or agency of the Issuer maintained under Section 3.2); and

 

(v)                                 that on the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest on the Notes will become due and payable and that interest on the Notes will cease to accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on the Redemption Date.

 

(b)                                 Deposit of Note Redemption Price.  The Issuer will cause the Servicer to deposit on the Business Day before the Redemption Date (or, with satisfaction of the Rating Agency Condition, on the Redemption Date) in the Collection Account the amount required under Section 5.1 of the Exchange Note Supplement, and the Notes will be paid in full on the Redemption Date.

 

(c)                                  Release of Funds.  On the Redemption Date, the outstanding Note Balance of the Notes plus accrued and unpaid interest on the Notes will become due and payable and that interest on the Notes will cease to accrue from and after the Redemption Date, unless the Issuer fails to pay the Notes on the Redemption Date.  On redemption, the Indenture Trustee will release the Collateral from the Lien of this Indenture and release to the Issuer or any other Person entitled to funds then in the Bank Accounts under this Indenture according to Section 8.4(c).

 

ARTICLE XI
 OTHER AGREEMENTS

 

Section 11.1.                          No Petition.  The Indenture Trustee and each Noteholder or Note Owner, by accepting a Note or an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all Secured Obligations, including all Exchange Notes, and any other Securities, (b) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (c) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) either Titling Company or either Holding Company, (ii) the Depositor or (iii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 11.1 will survive the resignation or removal of the Indenture Trustee under this Indenture and the termination of this Indenture.

 

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Section 11.2.                          Limited Recourse; Subordination of Claims Against Titling Companies.

 

(a)                                 Limited Recourse; Subordination Agreement.  The Titling Companies’ obligations under the 20  -   Exchange Note are secured solely by the Borrower Collateral, and a claim under this Indenture or a Note issued under this Indenture against a Titling Company will be limited in recourse to the 20  -   Reference Pool and the other Borrower Collateral available for payment on the 20  -   Exchange Note under the Exchange Note Supplement.  The Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by accepting a Note or an interest or participation in a Note, acknowledge and agree that they have no right, title or interest in or to any other assets of the Titling Companies, including assets allocated to Specified Interests other than the Collateral Specified Interest (“Other Borrower Assets”).  If the Indenture Trustee, a Noteholder, a Note Owner or another Person having a claim under this Indenture either (i) asserts an interest in, claim to or benefit from, Other Borrower Assets or (ii) is deemed to have an interest in, claim to or benefit from Other Borrower Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including under Section 1111(b) of the Bankruptcy Code), then the Indenture Trustee, each Noteholder and each Note Owner further acknowledges and agrees that the interest, claim or benefit in, to or from the Other Borrower Assets is subordinated to the indefeasible payment in full of the other obligations and liabilities of the Titling Companies (“Other Borrower Liabilities”), which, under the relevant documents relating to the securitization, conveyance or other financing or disposition of those Other Borrower Assets, are entitled to be paid from, entitled to the benefits of or secured by those Other Borrower Assets (whether or not the entitlement or security interest is legally perfected or entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Titling Companies), in each case, including the payment of post-petition interest on those other obligations and liabilities.  This Section 11.2(a) is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.  The Indenture Trustee, each Noteholder and each Note Owner further acknowledge and agree that no adequate remedy at law exists for a breach of this Section 11.2 and this Section 11.2 may be enforced by an action for specific performance.

 

(b)                                 Election under Bankruptcy Code.  The Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by accepting a Note or an interest or participation in a Note, irrevocably makes the election provided to secured creditors by Section 1111(b)(1)(A)(i) of the Bankruptcy Code to receive the treatment provided by Section 1111(b)(2) of the Bankruptcy Code for a secured claim that Person may have against Other Borrower Assets (including a Specified Interest of a Titling Company other than the Collateral Specified Interest).

 

(c)                                  Third Party Benefit.  This Section 11.2 is for the third party benefit of the holders, pledgees or other beneficiaries of Other Borrower Liabilities and will survive the termination of this Indenture.

 

Section 11.3.                          Limited Recourse; Subordination of Claims against Depositor.  The Issuer’s obligations under this Indenture are solely the Issuer’s obligations and do not represent an obligation or interest in the assets of the Depositor other than the Sold Assets conveyed to the Issuer under the Exchange Note Sale Agreement.  The Indenture Trustee, by entering into this Indenture, and each Noteholder and Note Owner, by accepting a Note or an interest or

 

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participation in a Note, acknowledge and agree that they have no right, title or interest in or to Other Assets of the Depositor.  If the Indenture Trustee, Noteholder or Note Owner either (i) asserts an interest in, claim to or benefit from, the Other Assets or (ii) is deemed to have an interest in, claim to or benefit from the Other Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including under Section 1111(b) of the Bankruptcy Code), then the Indenture Trustee, Noteholder or Note Owner further acknowledges and agrees that the interest, claim or benefit in, to or from the Other Assets is expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Assets, are entitled to be paid from, entitled to the benefits of, or secured by, those Other Assets (whether or not the entitlement or security interest is legally perfected or entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on those other obligations and liabilities.  This Section 11.3 is a subordination agreement within the meaning of Section 510(a) of the Bankruptcy Code.  The Indenture Trustee, each Noteholder and each Note Owner further acknowledge and agree that no adequate remedy at law exists for a breach of this Section 11.3 and it may be enforced by an action for specific performance.  This Section 11.3 is for the third-party benefit of the Depositor and any Person with an interest in the Other Assets and will survive the termination of this Indenture.

 

Section 11.4.                          Issuer Orders; Certificates and Opinions

 

(a)                                 Issuer Order or Issuer Request.  For an order or request by the Issuer to the Indenture Trustee to take an action under this Indenture or any other Transaction Document, the Issuer will deliver the following documents to the Indenture Trustee: (i) a written order (an “Issuer Order”) or a written request (an “Issuer Request”), signed in the name of the Issuer by a Responsible Person and delivered to the Indenture Trustee, (ii) an Officer’s Certificate stating that all conditions in this Indenture or other Transaction Document for the proposed action have been satisfied, (iii) if required by the TIA or on the request of the Indenture Trustee, an Opinion of Counsel stating that the conditions have been satisfied and (iv) if required by the TIA, an Independent Certificate from a firm of certified public accountants of national reputation selected by the Issuer.  However, no certificates or opinions are required to be delivered if this Indenture requires the furnishing of specific documents for the action to be taken.

 

(b)                                 Form of Certificates and Opinions.

 

(i)                                     Each certificate or opinion on compliance with a condition or covenant in this Indenture will include:

 

(A)                               a statement that each signatory of the certificate or opinion has read the covenant or condition and the definitions in this Indenture relating to the covenant or condition;

 

(B)                               a brief statement about the nature and scope of the examination or investigation on which the statements or opinions in the certificate or opinion are based;

 

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(C)                               a statement that, in the opinion of the signatory, the signatory has made an examination or investigation if necessary to enable the signatory to express an informed opinion on whether or not the covenant or condition has been complied with; and

 

(D)                               a statement about whether, in the opinion of the signatory, the condition or covenant has been complied with.

 

(ii)                                  Any Officer’s Certificate of a Responsible Person of the Issuer may be based, for legal matters, on an opinion of counsel, unless that Responsible Person knows, or in the exercise of reasonable care should know, that the opinion is erroneous.  Any Officer’s Certificate of a Responsible Person of the Issuer or opinion of counsel may be based, for factual matters, on an Officer’s Certificate of a Responsible Person of the Servicer, the Depositor or the Issuer (including by the Administrator on behalf of the Issuer), stating that the information about those factual matters is in the possession of the Servicer, the Depositor, the Issuer or the Administrator, unless the Responsible Person of the Issuer or counsel knows, or in the exercise of reasonable care should know, that the Officer’s Certificate is erroneous.

 

(c)                                  Conditions for Release.

 

(i)                                     Before depositing property or securities with the Indenture Trustee that is to be made the basis for the release of any Collateral subject to the Lien of this Indenture, the Issuer will furnish to the Indenture Trustee (A) an Officer’s Certificate stating the opinion of each Responsible Person signing the certificate about the fair value (within 90 days before the deposit) to the Issuer of the property or securities to be so deposited and (B) an Independent Certificate about the same matters, if the fair value to the Issuer of the securities to be so deposited and of other of securities withdrawn or released since the start of the then-current year, as stated in the certificates required by clause (A) and this clause (B), is 10% or more of the Note Balance of the Notes Outstanding, except that an Independent Certificate need not be furnished for property or securities so deposited if the fair value of the property or securities to the Issuer as stated in the related Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance of the Notes.

 

(ii)                                  Whenever property or securities are to be released from the Lien of this Indenture, the Issuer will furnish to the Indenture Trustee (A) an Officer’s Certificate stating the opinion of each Responsible Person signing the certificate about the fair value (within 90 days before the release) of the property or securities to be released and stating that in the opinion of that Responsible Person the proposed release will not impair the security under this Indenture and (B) an Independent Certificate about the same matters, if the fair value of the property or securities and of other property, other than property as contemplated by Section 11.4(d), of securities released from the Lien of this Indenture since the start of the then-current year, as stated in the certificates required by clause (A) and this clause (B), is 10% or more of the Note Balance of the Notes Outstanding, except that an Independent Certificate need not be furnished for the release of property or securities if the fair value of the property or securities as stated in the related Officer’s Certificate is less than $25,000 or less than 1% of the Note Balance of the Notes.

 

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(d)                                 Ordinary Course of Business.  The Issuer may, without furnishing any Officer’s Certificates or Independent Certificates under Section 11.4(c), (i) collect, liquidate, sell or dispose of (or, as Holder of the 20  -   Exchange Note, cause the Titling Companies to collect, liquidate, sell, remove or dispose of) Leases and Leased Vehicles in the ordinary course of its business, so long as Collections, Liquidation Proceeds, Recoveries and other proceeds of the dispositions are applied according to this Indenture and (ii) make cash payments out of the Bank Accounts, in each case, as and if permitted or required by the Transaction Documents.

 

(e)                                  Exemptive Orders.  If the Securities and Exchange Commission issues an exemptive order under Section 304(d) of the TIA modifying the Indenture Trustee’s obligations under Sections 314(c) and 314(d)(1) of the TIA, the Indenture Trustee will release property from the Lien of this Indenture only according to the Transaction Documents and the conditions and procedures stated in the exemptive order.

 

Section 11.5.                          Acts of Noteholders.

 

(a)                                 Written Documents.  Any request, demand, authorization, direction, notice, consent, waiver or other action provided by this Indenture to be given or taken by the Noteholders or a stated percentage of the Noteholders may be included in and evidenced by one or more documents signed by the Noteholders (each, an “Act of Noteholders”).  Except as otherwise stated in this Indenture, the action will become effective when the documents are delivered to the Indenture Trustee and, if required, to the Issuer.

 

(b)                                 Binding Effect.  Any Act of Noteholders will bind the Noteholder of every Note issued on the registration of the Note or in exchange for the Note or in place of the Note, for all purposes whether or not notation of the action is made on the Note.

 

Section 11.6.                          Conflict with Trust Indenture Act.  If any part of this Indenture limits, qualifies or conflicts with any other part of this Indenture that is required or deemed to be included in this Indenture by the TIA, the required or deemed part will control.  Sections 310 through 317 of the TIA that impose obligations on a Person (including those automatically deemed included in this Indenture unless expressly excluded by this Indenture) are a part of and govern this Indenture.

 

Section 11.7.                          Issuer Obligation.  No recourse may be taken, directly or indirectly, for the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under this Indenture or a certificate or other writing delivered under this Indenture or the Notes, against (a) the Indenture Trustee or the Owner Trustee each in its individual capacity, (b) each holder of a beneficial interest in the Issuer, (c) each partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (d) each holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.  The Indenture Trustee and the Owner Trustee have none of these obligations in their individual capacities.  For all purposes of this Indenture, the Owner Trustee will be subject to, and have the benefits of, Articles V, VI and VII of the Trust Agreement.

 

51

 

ARTICLE XII
 MISCELLANEOUS

 

Section 12.1.                          Benefits of Indenture; Third-Party Beneficiaries.  This Indenture and the Notes are for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Secured Parties, each Person with rights to payments or distributions under this Indenture and the holder of the Residual Interest will be third-party beneficiaries of this Indenture and may enforce this Indenture according to its terms.  No other Person will have any right or obligation under this Indenture or the Notes.

 

Section 12.2.                          Notices.

 

(a)                                 Notices to Parties.  Notices, requests, directions, consents, waivers or other communications to or from the parties to this Indenture must be in writing and will be considered received by the recipient:

 

(i)                                     for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the recipient;

 

(ii)                                  for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)                               for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)                              for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

 

(b)                                 Notice Addresses.  A notice, request, direction, consent, waiver or other communication will be addressed to the recipient stated on Schedule A, which address the party may change by notifying the other party.

 

(c)                                  Notice to Noteholders.  Notices to a Noteholder will be considered received by the Noteholder:

 

(i)                                     for Definitive Notes, for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the Noteholder at its address in the Note Register; or

 

(ii)                                  for Book-Entry Notes, when delivered under the procedures of the Clearing Agency, whether or not the Noteholder actually receives the notice.

 

(d)                                 Notices to Rating Agencies.  Where this Indenture requires notice to the Rating Agencies, failure to give the notice will not affect other rights or obligations under this Indenture, and will not be a Default or Event of Default.

 

52

 

Section 12.3.                          GOVERNING LAW.  THIS INDENTURE WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 12.4.                          Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this Indenture.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

 

Section 12.5.                          WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDINGS RELATING TO THIS INDENTURE.

 

Section 12.6.                          No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Indenture will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Indenture are in addition to any powers, rights and remedies under law.

 

Section 12.7.                          Severability.  If a part of this Indenture is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Indenture and will not affect the validity, legality or enforceability of the remaining Indenture.

 

Section 12.8.                          Headings.  The headings in this Indenture are included for convenience and will not affect the meaning or interpretation of this Indenture.

 

Section 12.9.                          Counterparts.  This Indenture may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

53

 

	
EXECUTED   BY:
    	
 
    
	
 
    	
 
    
	
 
    	
FORD   CREDIT AUTO LEASE TRUST 20  -  ,
    
	
 
    	
as Issuer
    
	
 
    	
 
    
	
 
    	
By:
    	
                                                                         ,   not in its individual capacity but solely as Owner Trustee of Ford Credit   Auto Lease Trust 20  -
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
                                                                                     ,
    
	
 
    	
 
    	
not   in its individual capacity but solely as Indenture Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Indenture]

 

 

	
Agreed   and Acknowledged for purposes
    	
 
    
	
of   the Granting Clause:
    	
 
    
	
 
    	
 
    
	
CAB   EAST LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
CAB WEST LLC
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to Indenture]

 

 

Schedule A

 

Notice Addresses

 

1.                                      If to Ford Credit, in its individual capacity or as Sponsor, Servicer, Custodian or Administrator:

 

Ford Motor Credit Company LLC
 c/o Ford Motor Company
 World Headquarters, Suite 802-A3
 One American Road 
 Dearborn, Michigan 48126
 Attention:  Securitization Operations Supervisor
 Telephone:  (313) 248-9379
 Email:  FDSecops@ford.com

 

With a copy to:

 

Ford Motor Credit Company LLC
 One American Road
 Suite 2411, Office 212-016
 Dearborn, Michigan 48126
 Attention:  Corporate Secretary
 Telephone:  (313) 322-1200
 Fax:  (313) 337-1160

 

2.                                      If to the Depositor:

 

Ford Motor Credit Company LLC
 c/o Ford Motor Company
 World Headquarters, Suite 802-A3
 One American Road 
 Dearborn, Michigan 48126
 Attention:  Ford Credit SPE Management Office
 Telephone:  (313) 594-3495
 Email:  FSPEMgt@ford.com

 

With a copy to:

 

Ford Motor Credit Company LLC
 One American Road
 Suite 2411, Office 212-016
 Dearborn, Michigan 48126
 Attention:  Corporate Secretary
 Telephone:  (313) 322-1200
 Fax:  (313) 337-1160

 

SA-1

 

3.                                      If to the Issuer:

 

c/o the Owner Trustee at the Corporate Trust Office of the Owner Trustee

 

With copies to:

 

Ford Motor Credit Company LLC
 c/o Ford Motor Company
 World Headquarters, Suite 802-A3
 One American Road 
 Dearborn, Michigan 48126
 Attention:  Ford Credit SPE Management Office
 Telephone:  (313) 594-3495
 Email:  FSPEMgt@ford.com

 

and

 

Ford Motor Credit Company LLC
 One American Road
 Suite 2411, Office 212-016
 Dearborn, Michigan 48126
 Attention:  Corporate Secretary
 Telephone:  (313) 322-1200
 Fax:  (313) 337-1160

 

4.                                      If to the Owner Trustee, at the Corporate Trust Office of the Owner Trustee

 

5.                                      If to the Indenture Trustee, at the Corporate Trust Office of the Indenture Trustee;

 

6.                                      If to the Asset Representations Reviewer:

 

[address]
 Attention:  
 Telephone: 
 Fax:

 

7.                                      If to [Rating Agency]:

 

[address]
 Attention:  
 Telephone: 
 Fax:

 

SA-2

 

Exhibit A

 

Form of Notes

 

UNLESS THIS NOTE 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 NOTE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN ANOTHER NAME REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND PAYMENT IS MADE TO CEDE & CO. OR TO ANOTHER ENTITY REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE OF THIS NOTE FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER OF THIS NOTE, CEDE & CO., HAS AN INTEREST IN THIS NOTE.

 

[Rule 144A Notes Only: THIS NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE OF THE UNITED STATES.  THE HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), BY PURCHASING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), AGREES FOR THE BENEFIT OF THE TRUST AND THE DEPOSITOR THAT THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) MAY BE SOLD, TRANSFERRED, ASSIGNED, PARTICIPATED, PLEDGED OR DISPOSED OF ONLY IN COMPLIANCE WITH THE SECURITIES ACT AND OTHER APPLICABLE LAWS, AND ONLY (I) UNDER RULE 144A UNDER THE SECURITIES ACT (“RULE 144A”) TO A PERSON THAT THE HOLDER REASONABLY BELIEVES IS A QUALIFIED INSTITUTIONAL BUYER, WITHIN THE MEANING OF RULE 144A (A “QIB”), PURCHASING FOR ITS OWN ACCOUNT OR FOR THE ACCOUNT OF A QIB, WHOM THE HOLDER HAS INFORMED, IN EACH CASE, THAT THE REOFFER, RESALE, PLEDGE OR OTHER TRANSFER IS BEING MADE IN RELIANCE ON RULE 144A, OR (II) TO THE DEPOSITOR OR ITS AFFILIATES, IN EACH CASE, ACCORDING TO ALL APPLICABLE SECURITIES LAWS OF THE UNITED STATES AND SECURITIES AND BLUE SKY LAWS OF THE STATES OF THE UNITED STATES.]

 

EACH HOLDER OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) THAT IS SUBJECT TO TITLE I OF THE EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR A FEDERAL, STATE, LOCAL OR NON-U.S. LAW OR REGULATION THAT IS SUBSTANTIALLY SIMILAR TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE (A “SIMILAR LAW”), BY ACCEPTING THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE), IS DEEMED TO REPRESENT THAT ITS PURCHASE, HOLDING AND DISPOSITION OF THIS NOTE (OR AN INTEREST OR PARTICIPATION IN THIS NOTE) IS NOT AND WILL NOT RESULT IN A NON-EXEMPT PROHIBITED TRANSACTION UNDER TITLE I OF ERISA OR SECTION 4975 OF THE CODE DUE TO THE APPLICABILITY OF A STATUTORY OR ADMINISTRATIVE EXEMPTION FROM THE PROHIBITED TRANSACTION RULES (OR, IF THE HOLDER IS SUBJECT TO ANY

 

EA-1

 

SIMILAR LAW, ITS PURCHASE, HOLDING AND DISPOSITION IS NOT AND WILL NOT RESULT IN A NON-EXEMPT VIOLATION OF THE SIMILAR LAW).

 

THE PRINCIPAL OF THIS NOTE IS PAYABLE IN INSTALLMENTS AS STATED IN THIS NOTE.  ACCORDINGLY, THE OUTSTANDING PRINCIPAL AMOUNT OF THIS NOTE MAY BE LESS THAN THE AMOUNT SHOWN ON THE FACE OF THIS NOTE.

 

EA-2

 

	
REGISTERED
    	
$[           ]
    
	
No. R-1
    	
CUSIP NO.   [         ]
    

 

FORD CREDIT AUTO LEASE TRUST 20  -

 

CLASS [A-[  ][B][C] [  %][FLOATING RATE] ASSET BACKED NOTES

 

Ford Credit Auto Lease Trust 20  -  , a statutory trust organized under the laws of the State of Delaware (the “Issuer”), for value received, promises to pay to CEDE & CO., or registered assigns, the principal sum of [                ] DOLLARS payable on the fifteenth day of each month, or, if that day is not a Business Day, the next succeeding Business Day, starting in        20   (each, a “Payment Date”) in an amount equal to the aggregate amount payable to the Noteholders of Class [A-[  ][B][C] Notes on that Payment Date from the amounts payable as principal on the Class [A-[  ][B][C] Notes under Section 3.1 of the Indenture, dated as of            , 20   (the “Indenture”), between the Issuer and                         , as Indenture Trustee (the “Indenture Trustee”).  However, the entire unpaid principal amount of this Note will be due and payable on the earlier of (a) the [          ] Payment Date (the “Class [A-[  ][B][C] Final Scheduled Payment Date”), or (b) the Redemption Date under Section 10.1 of the Indenture.  The entire unpaid principal amount of the Notes will be due and payable on the date on which the Notes are declared to be, or have automatically become, immediately due and payable under Section 5.2(a) of the Indenture.  Principal payments on the Class [A-[  ][B][C] Notes will be made pro rata to the Noteholders entitled to those principal payments. Capitalized terms used but not defined in this Note are defined in Article I of the Indenture, which also contains usage rules that apply to this Note.

 

The Issuer will pay interest on this Note [at the rate per annum shown above] [a rate based on LIBOR determined under the terms of the Indenture, equal to LIBOR plus [   ]%] on each Payment Date until the principal of this Note is paid or made available for payment, on the principal amount of this Note outstanding on the prior Payment Date (in each case, after giving effect to payments of principal made on the prior Payment Date), subject to limitations in Section 3.1 of the Indenture.  Interest on this Note will accrue for each Payment Date from and including the [15th day of the month before each Payment Date] [previous Payment Date on which interest has been paid] (or, for the initial Payment Date, from and including the Closing Date) to but excluding [the 15th day of the month in which that Payment Date occurs] [that Payment Date].  Interest will be computed on the basis of [actual days elapsed and] a 360-day year [of twelve 30 day months].

 

The principal of and interest on this Note are payable in the coin or currency of the United States of America that at the time of payment is legal tender for payment of public and private debts.  Payments made by the Issuer on this Note will be applied first to interest due and payable on this Note as stated above and then to the unpaid principal of this Note.

 

This Note is one of a duly authorized issue of Class [A-[  ][B][C] [  %][Floating Rate] Asset Backed Notes (the “Class [A-[  ][B][C] Notes”) of the Issuer.  Also authorized under the Indenture are the Class [A-[  ][B][C] Notes.  The Indenture and indentures supplemental to the Indenture state the respective rights and obligations of the Issuer, the Indenture Trustee and the Noteholders.  The Notes are subject to the Indenture.

 

EA-3

 

The Class [A-[  ][B][C] Notes are and will be equally and ratably secured by the collateral pledged as security therefor under the Indenture.  Interest on and principal of the Notes will be payable according to the priority of payments stated in Section 8.2 of the Indenture.  [Class B only:][The Class B Notes are subordinated in right of payment to the Class A Notes.]  [Class C only:][The Class C Notes are subordinated in right of payment to the Class A and Class B Notes.]

 

Payments of interest on this Note on each Payment Date, together with each installment of principal if not in full payment of this Note, will be made to the Registered Noteholder of this Note either by wire transfer, to the account of the Noteholder at a bank or other entity having proper facilities for the wire transfer, if the Noteholder has given to the Note Registrar proper written instructions at least five Business Days before that Payment Date and the Noteholder’s Notes in the aggregate evidence a denomination of not less than $1,000,000, or, if not, by check mailed first class mail, postage prepaid, to the Registered Noteholder’s address as it appears on the Note Register on each Record Date.  However, unless Definitive Notes have been issued to Note Owners, payment will be made by wire transfer to the account designated by Cede & Co., as nominee of the Clearing Agency or a successor nominee.  The payments will be made without requiring that this Note be submitted for notation of payment.  Any reduction in the principal amount of this Note effected by payments made on a Payment Date will bind future Noteholders of this Note and of a Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this Note, whether or not noted on this Note.  If money is expected to be available for payment in full of the then remaining unpaid principal amount of this Note on a Payment Date, then the Indenture Trustee, in the name of and on behalf of the Issuer, will notify the Registered Noteholder of this Note as of the prior Record Date by notice mailed or transmitted by fax before that Payment Date, and the amount then due and payable will be payable only on presentation and surrender of this Note at the Indenture Trustee’s Corporate Trust Office or at the office of the Indenture Trustee’s agent appointed for those purposes located in The City of New York.

 

The Issuer will pay interest on overdue installments of interest at the Class [A-[  ]/B/C] Note Interest Rate if lawful.

 

The Notes may be redeemed, in whole but not in part, in the manner and to the extent described in the Indenture and the Servicing Supplement.

 

The transfer of this Note is subject to the restrictions on transfer stated on the face of this Note and to the other limitations in the Indenture.  Subject to the satisfaction of those restrictions and limitations, the transfer of this Note may be registered on the Note Register on surrender of this Note for registration of transfer at the office or agency designated by the Issuer under the Indenture, duly endorsed by, or accompanied by a written instrument of transfer in form satisfactory to the Indenture Trustee duly executed by, the Noteholder of this Note or its attorney-in-fact, with the signature guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, and then one or more new Notes of the same Class in authorized denominations and in the same aggregate principal amount will be issued to the designated transferee or transferees.  No service charge will be charged for the registration of transfer or exchange of this Note, but the transferor may be required to pay an amount to cover

 

EA-4

 

any tax or other governmental charge that may be imposed under any registration of transfer or exchange.

 

Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that no recourse may be taken, directly or indirectly, for the obligations of the Issuer, the Owner Trustee or the Indenture Trustee on the Notes or under the Indenture or a certificate or other writing delivered for the Notes and the Indenture, against (i) the Indenture Trustee or the Owner Trustee, each in its individual capacity, (ii) any holder of a beneficial interest in the Issuer, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Indenture Trustee or the Owner Trustee, each in its individual capacity or (iv) any holder of a beneficial interest in the Owner Trustee or the Indenture Trustee, each in its individual capacity.

 

The obligations of the Issuer under the Indenture are solely the obligations of the Issuer and do not represent an obligation or interest in any assets of the Depositor other than the Sold Assets conveyed to the Issuer under the Exchange Note Sale Agreement.  Each Noteholder and Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges and agrees that it has no right, title or interest in or to any Other Assets of the Depositor.  If the Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Assets or (ii) is deemed to have any interest, claim to or benefit in or from Other Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Noteholder or Note Owner further acknowledges and agrees that any interest, claim or benefit in or from Other Assets is and will be expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Assets, are entitled to be paid from, entitled to the benefits of, or secured by those Other Assets (whether or not any entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Depositor), including the payment of post-petition interest on the other obligations and liabilities.  THIS PARAGRAPH IS A SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(a) OF THE BANKRUPTCY CODE.

 

Any claim under a Note issued under the Indenture against one of the Titling Companies will be limited in recourse to the 20  -   Reference Pool and the other Borrower Collateral available for payment on this Note under the Exchange Note Supplement.  Each Noteholder and Note Owner, by its acceptance of a Note or an interest or participation in a Note, acknowledges and agrees that it has no right, title or interest in or to any Other Borrower Assets of a Titling Company.  If the Noteholder or Note Owner either (i) asserts an interest or claim to, or benefit from, Other Borrower Assets or (ii) is deemed to have any interest, claim to or benefit in or from Other Borrower Assets, whether by operation of law, legal process, under insolvency laws or otherwise (including by virtue of Section 1111(b) of the Bankruptcy Code), then the Noteholder or Note Owner further acknowledges and agrees that any interest, claim or benefit in or from Other Borrower Assets is and will be expressly subordinated to the indefeasible payment in full of the other obligations and liabilities, which, under the relevant documents relating to the securitization or conveyance of those Other Borrower Assets, are entitled to be paid from, entitled to the benefits of, or secured by those Other Borrower Assets (whether or not any

 

EA-5

 

entitlement or security interest is legally perfected or otherwise entitled to a priority of distributions or application under applicable law, including insolvency laws, and whether or not asserted against the Titling Company), including the payment of post-petition interest on the other obligations and liabilities.  THIS PARAGRAPH IS A SUBORDINATION AGREEMENT WITHIN THE MEANING OF SECTION 510(a) OF THE BANKRUPTCY CODE.

 

Each Noteholder or Note Owner, by accepting a Note or, for a Note Owner, an interest or participation in a Note, agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all Secured Obligations, including all Exchange Notes, and any other Securities, (b) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (c) the Notes, it will not start or pursue against, or join another Person in starting or pursuing against, (i) either Titling Company or either Holding Company, (ii) the Depositor or (iii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings under any bankruptcy or similar law.

 

The Issuer has entered into the Indenture and this Note is issued with the intention that, for federal, State and local income and franchise tax purposes, Notes that are beneficially owned by a Person other than Ford Credit or its Affiliates will qualify as indebtedness of the Issuer secured by the Collateral.  Each Noteholder or Note Owner, by its acceptance of a Note or an interest or participation in a Note, will be deemed to agree to treat the Notes for federal, State and local income, single business and franchise tax purposes as indebtedness of the Issuer.

 

For any date, the Issuer, the Indenture Trustee and any agent of the Issuer or the Indenture Trustee may treat the Person in whose name this Note is registered as of that date as the owner of this Note for the purpose of receiving payments of principal of and any interest on the Note and for all other purposes, without regard to any notice or other information to the contrary.

 

The Indenture permits, with some exceptions requiring the consent of all adversely affected Noteholders under the Indenture, the amendment of the Indenture and the modification of the rights and obligations of the Issuer and the rights of the Noteholders under the Indenture by the Issuer with the consent of the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.  The Indenture also permits the Indenture Trustee to amend or waive some terms and conditions in the Indenture without the consent of the Noteholders if some conditions are satisfied.  In addition, the Indenture contains terms permitting the Noteholders of Notes evidencing stated percentages of the Note Balance of the Notes or of the Controlling Class, on behalf of all Noteholders, to waive compliance by the Issuer with some terms of the Indenture and some defaults under the Indenture and their consequences.  Any consent or waiver by the Noteholder of this Note will be conclusive and bind the Noteholder and all future Noteholders of this Note and of any Note issued on the registration of transfer of this Note or in exchange of this Note or in place of this Note whether or not notation of the consent or waiver is made on this Note.

 

The term “Issuer,” as used in this Note, includes any successor to the Issuer under the Indenture.

 

EA-6

 

The Issuer is permitted by the Indenture, under some circumstances, to merge or consolidate, subject to the rights of the Indenture Trustee and the Noteholders under the Indenture.

 

The Notes are issuable only in registered form in denominations as stated in the Indenture, subject to some limitations in the Indenture.

 

THIS NOTE AND THE INDENTURE WILL BE GOVERNED BY, AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

No reference in this Note to the Indenture, and no term of this Note or of the Indenture, will alter or impair the obligation of the Issuer, which is absolute and unconditional, to pay the principal of and interest on this Note at the time, place and rate, and in the coin or currency prescribed in this Note.

 

Except as permitted under the Transaction Documents, none of                    , in its individual capacity,                  , in its individual capacity, any owner of a beneficial interest in the Issuer, or their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns will be personally liable for, nor will recourse be had to any of them for, the payment of principal of or interest on this Note or performance of, or omission to perform, any of the covenants, obligations or indemnifications in the Indenture.  The Noteholder of this Note, by its acceptance of this Note, agrees that, except as permitted in the Transaction Documents, for an Event of Default under the Indenture, the Noteholder has no claim against those Persons for any deficiency, loss or claim from this Note.  However, nothing in this Note will be taken to prevent recourse to, and enforcement against, the assets of the Issuer for liabilities, obligations and undertakings in the Indenture or in this Note.

 

Unless the certificate of authentication on this Note has been executed by the Indenture Trustee whose name appears below by manual signature, this Note will have the benefit of the Indenture, or be valid or obligatory for any purpose.

 

[Remainder of Page Left Blank]

 

EA-7

 

The Issuer has caused this instrument to be signed, manually or in facsimile, by its Responsible Person, as of the date below.

 

	
Date:                   , 20
    	
 
    
	
 
    	
 
    
	
 
    	
FORD   CREDIT AUTO LEASE TRUST 20  -
    
	
 
    	
 
    
	
 
    	
By:
    	
                                                    ,   not in its individual capacity but solely as Owner Trustee of Ford Credit   Auto Lease Trust 20  -
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Responsible   Person
    

 

CERTIFICATE OF AUTHENTICATION

 

This is one of the Class [A-[  ][B][C] Notes designated above and referred to in the Indenture.

 

	
Date:                   , 20
    	
 
    
	
 
    	
 
    
	
,
    	
                                                                                ,
    
	
 
    	
 
    	
not   in its individual capacity but 
    
	
 
    	
 
    	
solely   as Indenture Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Responsible   Person
    

 

EA-8

 

ASSIGNMENT

 

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

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto:

 

 

 

(name and address of assignee)

 

the within Note and all rights under said Note, and hereby irrevocably constitutes and appoints                  , attorney, to transfer said Note on the books kept for registration of said Note, with full power of substitution in the premises.

 

 

	
Dated:
    	
 
    	
 
    	
                                                                                                        */
    
	
 
    	
 
    	
Signature Guaranteed*/
    

 

*/                                     NOTICE:  The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Note in every particular, without alteration, enlargement or any change whatever.  The signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Note Registrar, which requirements include membership or participation in the Securities Transfer Agents Medallion Program or another “signature guarantee program” selected by the Note Registrar in addition to, or in substitution for, the Securities Transfer Agents Medallion Program, according to the Exchange Act.

 

EA-9

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