Document:

EXHIBIT 10.5

 

 

 

 

SERVICING SUPPLEMENT

 

 

to the

 

 

AMENDED AND RESTATED SERVICING AGREEMENT

 

dated as of December 1, 2006

 

among

 

 

FORD MOTOR CREDIT COMPANY LLC,
  as Servicer with respect to the Collateral Specified Interests

and the 2012-B Reference Pool and as Lender,

 

 

CAB EAST HOLDINGS, LLC,
 CAB WEST HOLDINGS CORPORATION, and
 FCALM HOLDINGS CORPORATION,
 as Holders of the Collateral Specified Interest Certificates

 

 

and

 

 

HTD LEASING LLC,
 as Collateral Agent

 

 

Dated as of September 1, 2012

 

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II DESIGNATION
    	
2
    
	
Section 2.1.
    	
Designation
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE III THE SERVICER
    	
2
    
	
Section 3.1.
    	
Appointment of Servicer
    	
2
    
	
Section 3.2.
    	
Representations of the Servicer
    	
2
    
	
Section 3.3.
    	
Representations and Warranties About the Leases and the   Leased Vehicles
    	
2
    
	
Section 3.4.
    	
Liability of the Servicer; Indemnities
    	
5
    
	
Section 3.5.
    	
Purchase Upon Breach
    	
5
    
	
Section 3.6.
    	
Collection of Payments
    	
6
    
	
Section 3.7.
    	
Servicer May Own Exchange Note and Notes
    	
7
    
	
Section 3.8.
    	
Fees and Expenses
    	
7
    
	
Section 3.9.
    	
Termination
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV ACCOUNTS, COLLECTIONS   AND APPLICATION OF FUNDS
    	
8
    
	
Section 4.1.
    	
Bank Accounts
    	
8
    
	
Section 4.2.
    	
Deposits and Payments
    	
9
    
	
Section 4.3.
    	
Advances
    	
10
    
	
Section 4.4.
    	
Repayment of Advances
    	
11
    
	
Section 4.5.
    	
Trust Distribution Account
    	
11
    
	
Section 4.6.
    	
Reserve Deposits and Withdrawals
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE V TERMINATION
    	
11
    
	
Section 5.1.
    	
Clean-Up Call
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VI REPORTS AND NOTICES
    	
12
    
	
Section 6.1.
    	
Monthly Investor Reports
    	
12
    
	
Section 6.2.
    	
Notices and Certificates Received by or Delivered by the   Servicer Under the Servicing Agreement
    	
12
    
	
Section 6.3.
    	
Notice of Servicer Event of Default
    	
12
    
	
Section 6.4.
    	
Annual Statement as to Compliance
    	
12
    
	
Section 6.5.
    	
Compliance with Obligations under Sarbanes-Oxley Act
    	
13
    
	
Section 6.6.
    	
Report on Assessment of Compliance with Servicing Criteria   and Attestation
    	
13
    
	
Section 6.7.
    	
Delivery of Tax Related Information
    	
13
    
	
Section 6.8.
    	
Termination of Reporting Obligation
    	
13
    
	
Section 6.9.
    	
Authorized Persons of Servicer
    	
13
    
	
Section 6.10.
    	
Execution of Securities and Exchange Commission Filings
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VII MISCELLANEOUS
    	
14
    
	
Section 7.1.
    	
Amendments
    	
14
    

 

i

 

	
Section 7.2.
    	
Third-Party Beneficiaries of the Servicing Agreement and   this Servicing Supplement
    	
14
    
	
Section 7.3.
    	
No Petition
    	
14
    
	
Section 7.4.
    	
GOVERNING LAW
    	
15
    
	
Section 7.5.
    	
Submission to Jurisdiction
    	
15
    
	
Section 7.6.
    	
WAIVER OF JURY TRIAL
    	
15
    
	
Section 7.7.
    	
Severability
    	
15
    
	
Section 7.8.
    	
Counterparts
    	
15
    
	
Section 7.9.
    	
Headings
    	
15
    
	
Section 7.10.
    	
Conflict with Servicing Agreement
    	
15
    
	
 
    
	
Exhibit   A
    	
Schedule   of Collateral Leases and Collateral Leased Vehicles in 2012-B Reference Pool
    	
EA-1
    
	
Exhibit   B
    	
Form   of Monthly Investor Report
    	
EB-1
    
				

 

ii

 

SERVICING SUPPLEMENT, dated as of September 1, 2012 (this “Servicing Supplement”), to the Amended and Restated Servicing Agreement, dated as of December 1, 2006 (the “Servicing Agreement”), among (i) FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company (“Ford Credit”), as servicer with respect to the Collateral Specified Interests and the 2012-B Reference Pool (in such capacity, the “Servicer”) and as Lender under the Credit and Security Agreement (in such capacity, the “Lender”), (ii) CAB EAST HOLDINGS, LLC, a Delaware limited liability company, CAB WEST HOLDINGS CORPORATION, a Delaware corporation and FCALM HOLDINGS CORPORATION, a Delaware corporation (together, the “Holding Companies” and each, a “Holding Company”), as Holders of the Collateral Specified Interest Certificates and (iii) HTD Leasing LLC, as collateral agent (in such capacity, the “Collateral Agent”).

 

BACKGROUND

 

Section 2.3 of the Servicing Agreement provides that in connection with the issuance of an Exchange Note pursuant to the Credit and Security Agreement (as defined below) and the Exchange Note Supplement (as defined below), the Servicer, the Lender, the Collateral Agent and each Holding Company may enter into a supplement to the Servicing Agreement setting forth the specific rights and duties of the Servicer and the other agreements and undertakings with respect to the administration and servicing of the 2012-B Reference Pool and the 2012-B Exchange Note.

 

The Series 2012-B Exchange Note will be issued and the 2012-B Reference Pool will be designated, each pursuant to the Credit and Security Agreement and the Exchange Note Supplement.

 

The parties wish to enter into this Servicing Supplement to set forth the additional duties required of the Servicer with respect to the 2012-B Reference Pool and the 2012-B Exchange Note.

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.            Usage and Definitions.  Capitalized terms used but not otherwise defined in this Servicing Supplement are defined in Appendix 1 to the Exchange Note Supplement to the Credit and Security Agreement (as defined below), dated as of September 1, 2012 (the “Exchange Note Supplement”), among CAB East LLC (“CAB East”), as a Borrower, CAB West LLC (“CAB West”), as a Borrower, and FCALM, LLC (“FCALM” and, together with CAB East and CAB West, the “Titling Companies”), as a Borrower, U.S. Bank National Association (“U.S. Bank”), as Administrative Agent, the Collateral Agent, and Ford Credit, as Lender and Servicer.  Capitalized terms used but not otherwise defined in this Servicing Supplement or in Appendix 1 to the Exchange Note Supplement are defined in Appendix A to the Amended and Restated Credit and Security Agreement, dated as of December 1, 2006 (the “Credit and Security Agreement”), among the Titling Companies, as Borrowers, U.S. Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and Servicer, or, if not defined in Appendix A, are defined in the related Titling Company Agreement.  Appendix 1 and Appendix A also contain rules as to usage applicable to this Servicing Supplement and are incorporated by reference into this Servicing Supplement.

 

 

ARTICLE II
 DESIGNATION

 

Section 2.1.            Designation.  The parties designate the Collateral Leases and Collateral Leased Vehicles listed on Exhibit A to be the “2012-B Reference Pool” and each Collateral Lease and Collateral Leased Vehicle included in the 2012-B Reference Pool to be a “Lease” and a “Leased Vehicle,” respectively.

 

ARTICLE III
 THE SERVICER

 

Section 3.1.            Appointment of Servicer.  Each party acknowledges and agrees that the Servicer under the Servicing Agreement will also act as Servicer under this Servicing Supplement with respect to the 2012-B Reference Pool and the 2012-B Exchange Note and will also act as agent of any Holding Company, as Holder of the related Collateral Specified Interest Certificate in the management and control of the Leases and Leased Vehicles and for all other purposes set forth in this Servicing Supplement and the Servicing Agreement.  Ford Credit accepts such appointments.

 

Section 3.2.            Representations of the Servicer.  The Servicer has made the representations set forth in Section 3.2 of the Servicing Agreement on which the Lender, the Holding Companies and the Collateral Agent have relied, and the 2012-B Exchange Noteholder, in acquiring the 2012-B Exchange Note, will rely.  Such representations are remade as of the Exchange Note Issuance Date and will survive the sale, transfer, assignment and conveyance of the 2012-B Exchange Note to the 2012-B Exchange Noteholder, the Depositor and the Issuer and the pledge of the 2012-B Exchange Note to the Indenture Trustee pursuant to the Indenture.

 

Section 3.3.            Representations and Warranties About the Leases and the Leased Vehicles.  The Servicer represents and warrants to the Depositor and the Issuer as of the date of this Servicing Supplement and the 2012-B Closing Date (except as otherwise specified), which representations and warranties (i) the 2012-B Exchange Noteholder, the Depositor and the Issuer have relied on in acquiring the 2012-B Exchange Note and (ii) will survive the sale of the 2012-B Exchange Note to the 2012-B Exchange Noteholder, the Depositor and the Issuer and the pledge of the 2012-B Exchange Note to the Indenture Trustee pursuant to the Indenture:

 

(a)           New Vehicle.  Each Leased Vehicle was a new car, light truck or utility vehicle at the beginning of the related Lease; provided, that a Leased Vehicle that has never been titled and has not been driven more than 6,000 miles will be deemed to be a new vehicle for purposes of this representation and warranty.

 

(b)           Certificate of Title.  Each Leased Vehicle was titled in accordance with the related Titling Company Agreement and in a manner acceptable to the relevant Governmental Authority, or the servicer has commenced procedures that will result in such title.

 

(c)           Security Interest in Lease and Leased Vehicle.  The Collateral Agent has a security interest in each Lease and Leased Vehicle which was validly created and is a perfected, first priority security interest, and is noted as lienholder on the certificate of title for each Leased Vehicle, or the Servicer has commenced procedures that will result in the perfection of a first

 

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priority security interest in the related Leased Vehicle, including by notation of the lien on the certificate of title.

 

(d)           Interest in Lease and Leased Vehicle.  Each Lease was entered into by a Dealer located in the United States, as lessor, and a Lessee with a garaging location in an Eligible State, as lessee, and all of the Dealer’s right, title and interest in such Lease and the related Leased Vehicle was validly assigned to a Titling Company qualified to hold such Leased Vehicle.

 

(e)           Origination of Leases.  Each Lease was originated by a Dealer in the ordinary course of its business and has been fully executed by the parties thereto and at the time of its origination, substantially complied with the Servicer’s Credit and Collection Policy.

 

(f)            Total Payments.  Each Lease (other than an Advance Payment Plan Lease) provides for Total Payments that include Base Payments.

 

(g)           Compliance with Law.  Each Lease complied in all material respects at the time it was originated, and as of the date of this Servicing Supplement will comply in all material respects, with all requirements of federal, State and local laws.

 

(h)           Consents, Licenses, Approvals and Authorizations.  All material consents, licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority required to be obtained, effected or given by the Dealer that originated a Lease or the related Titling Company in connection with (i) the origination of such Lease, (ii) the execution, delivery and performance by such Dealer of such Lease and (iii) the acquisition and ownership by the related Titling Company of such Lease and the related Leased Vehicle, had been duly obtained, effected or given and were in full force and effect as of such date of origination or acquisition and remained in full force and effect.

 

(i)            Binding Obligation.  Each Lease is on a form contract that includes rights and remedies allowing the holder to enforce the obligation and realize on the Leased Vehicle and represents the legal, valid and binding payment obligation of the related Lessee, enforceable in all material respects by the holder of the Lease, except as may be limited by bankruptcy, insolvency, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles and consumer protection laws.

 

(j)            No Government Lessee.  No Lease is an obligation of the United States of America or any State or local government or from any agency, department, or instrumentality or political subdivision of the United States of America or any State or local government.

 

(k)           No Commercial Lease.  No Lease is a commercial lease contract, master lease contract or fleet vehicle lease contract; provided, that no Lease that is a retail lease contract will breach this representation solely because the related Lessee is a commercial lessee or the Leased Vehicle will be used for commercial purposes.

 

(l)            Leases in Force.  As of the Cutoff Date, no Lease (i) is a Terminating Lease or a Closed Lease or (ii) has been satisfied, subordinated, rescinded, cancelled or terminated, in whole or in part.

 

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(m)          No Waiver or Amendments.  No material provision of a Lease (other than the assessment of a security deposit or a Payment Extension Fee or the payment of any other amount that, upon collection, would constitute an Additional Amount, or a default relating to failure by the related Lessee to pay any such amount) has been affirmatively waived or amended, except amendments and modifications that are contained in the Lease Files.

 

(n)           No Extensions.  As of the Cutoff Date, no extensions other than Payment Extensions not exceeding three months in the aggregate under any Lease have been granted.

 

(o)           No Defenses.  To the Servicer’s knowledge, no right of rescission, setoff, counterclaim or defense has been asserted or threatened with respect to any Lease.

 

(p)           No Delinquency or Default.  Except for payments that are not more than 30 days delinquent as of the Cutoff Date, no payment defaults (determined in accordance with the Credit and Collection Policy) exist.

 

(q)           Insurance.  Each Lease requires the lessee to obtain physical damage and liability insurance covering the related Leased Vehicle.

 

(r)            Title.  The applicable Titling Company has good title, or the Servicer has commenced procedures that will result in good title, to each Lease and each Leased Vehicle, free and clear of any Liens other than Permitted Liens.

 

(s)           Valid Assignment.  No Lease was originated in, or is subject to the laws of, any jurisdiction under which the sale and assignment of such Lease or the related Leased Vehicle to the Titling Company would be unlawful, void, or voidable.  Each Lease is fully assignable and no Dealer has entered into any agreement with any Lessee that prohibits, restricts or conditions the assignment of any portion of a Lease.

 

(t)            Chattel Paper.  Each Lease constitutes either “tangible chattel paper” or “electronic chattel paper” within the meaning of Section 9-102(a) of the UCC and there is only one original authenticated copy of each.

 

(u)           Maturity of Leases.  Each Lease has an original Scheduled Lease End Date of no greater than 48 months from its Lease Date.

 

(v)           Peace of Mind.  No Lease that is an Advance Payment Plan Lease has been identified by the Servicer as qualifying for the benefits of its “Peace of Mind” program for Lessees who were at least 62 years of age at Lease inception and who die during the term of the related Lease.

 

(w)          No Bankruptcy Proceeding.  As of the Cutoff Date, the Servicer has not received actual notice that the Lessee on any Lease is a debtor in a bankruptcy proceeding.

 

(x)            No Allocation to Other Specified Interest.  No Lease or Leased Vehicle has been allocated to any Specified Interest other than a Collateral Specified Interest.

 

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(y)           Valid Security Interest.  The Collateral Agent has a valid security interest, or the Servicer has commenced procedures that will result in a valid security interest, in the Collateral Leases and the Collateral Leased Vehicles and all proceeds thereof.

 

(z)            Information about Leases; Selection Procedures.  The information on the schedule of Collateral Leases and Collateral Leased Vehicles attached as Exhibit A is true and correct in all material respects as of the Cutoff Date.  No selection procedures believed to be adverse to the 2012-B Exchange Noteholder have been utilized in selecting the Leases and Leased Vehicles included in the 2012-B Reference Pool from other leases and leased vehicles that meet the criteria specified in this Section 3.3.

 

(aa)         Other Data.  The numerical data relating to the characteristics of the Leases and Leased Vehicles contained in Annex A of the Prospectus Supplement is true and correct in all material respects.

 

Section 3.4.            Liability of the Servicer; Indemnities.

 

(a)           The Servicer will indemnify, defend and hold harmless each Titling Company, the Holders of the Collateral Specified Interest Certificates, the Administrative Agent, the Collateral Agent, the Lender, the Indenture Trustee and the 2012-B Exchange Noteholder (each, with respect to this Section 3.4(a), an “Indemnified Person”) in accordance with Section 3.3 of the Servicing Agreement as well as from and against any and all costs, expenses, losses, damages, claims and liabilities, arising out of the Servicer’s willful misconduct, bad faith or negligence.

 

(b)           The Servicer will indemnify, defend and hold harmless the Issuer, the Collateral Agent, the Administrative Agent, the Owner Trustee and the Indenture Trustee, as applicable, and their respective officers, directors, employees and agents (each, with respect to this Section 3.4(b), an “Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or incurred in connection with, the acceptance of or performance by the Servicer of the trusts and duties contained in this Servicing Supplement, except to the extent that such cost, expense, loss, damage, claim or liability:  (i) is due to the willful misconduct, bad faith or negligence of the Indemnified Person, (ii) in the case of the Owner Trustee, arises from the Owner Trustee’s breach of any of its representations or warranties set forth in the Trust Agreement or (iii) in the case of the Indenture Trustee, arises from the Indenture Trustee’s breach of any of its representations and warranties set forth in the Indenture.

 

(c)           In addition to the Indemnified Parties included in the Servicing Agreement, the Servicer will indemnify the Issuer, the Owner Trustee and the Indenture Trustee as “Indemnified Parties” pursuant to Sections 3.3(b), (c) and (d) of the Servicing Agreement.

 

Section 3.5.            Purchase Upon Breach.

 

(a)           Deposit of Administrative Reallocation Amount.

 

(i)            If a Responsible Person of the Servicer has actual knowledge, or receives notice from the 2012-B Exchange Noteholder or the Indenture Trustee, of a breach of (A) a representation or warranty set forth in Section 3.3 of this Servicing Supplement, (B) the covenant set forth in Section 3.8(b) of the Servicing Agreement, (C) the covenant set forth

 

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in Section 3.6 of this Servicing Supplement or (D) the covenant set forth in Section 6.7 of the Servicing Agreement, in each case, that materially and adversely affects any Lease and Leased Vehicle, the Servicer will deposit in the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to each such Lease and Leased Vehicle as of the last day of the second Collection Period following the Collection Period in which the Servicer obtained actual knowledge, or was notified, of such breach (or, at the Servicer’s option, the end of the first Collection Period following the Collection Period in which the Servicer obtained actual knowledge, or was notified, of such breach) unless, by such last day such breach has been cured in all material respects.

 

(ii)           The Servicer may deposit in the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease and Leased Vehicle if the Servicer determines, in its sole discretion, that, as a result of a receivables systems error or receivables systems limitation or for any other reason, the Servicer is unable to service such Lease and Leased Vehicle in accordance with the terms of the Servicing Agreement or this Servicing Supplement.  The Servicer will deposit in the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease (and with the related Leased Vehicle) that is an Advance Payment Plan Lease if the Servicer determines that such Lease qualifies for the benefit of its “Peace of Mind” program.

 

(iii)          So long as Ford Credit remains the Servicer, the Servicer will deposit in the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease and Leased Vehicle if the Servicer is notified that the Leased Vehicle is no longer owned by a Titling Company.

 

(iv)          The Servicer will deposit the Administrative Reallocation Amount with respect to any Lease and related Leased Vehicle that the Servicer is removing from the 2012-B Reference Pool in accordance with this Section 3.5(a) in the Exchange Note Collection Account on the Business Day preceding the Payment Date (or, with satisfaction of the Rating Agency Condition, on the Payment Date) related to the Collection Period during which such purchase occurs.

 

(b)           Reallocation Sole Remedy for Breach.  Except as provided in Section 3.3, the sole remedy of the Collateral Agent, the 2012-B Exchange Noteholder, the Indenture Trustee and the holders of the Notes with respect to a breach of the representations and warranties contained in Section 3.3 is as set forth in Section 3.5(a).

 

(c)           Reallocation of Purchased Leases and Leased Vehicles.  Upon the deposit of the Administrative Reallocation Amount for any Lease and Leased Vehicle pursuant to Section 3.5(a), such Lease and Leased Vehicle will be reallocated to the Revolving Facility Pool at the direction of the Servicer and will no longer be included in the 2012-B Reference Pool.

 

Section 3.6.            Collection of Payments.  The Servicer may grant extensions, waivers, rebates, modifications or adjustments with respect to any Collateral Lease, except that if (a) after the Cutoff Date, the Servicer modifies the amount of the Base Payment due with respect to any Lease or (b) after the Cutoff Date, the Servicer grants a Payment Extension or Term Extension that

 

6

 

extends any Lease past the Final Scheduled Payment Date for the most junior Class of Notes, the Servicer will reallocate such Lease and the related Leased Vehicle to the Revolving Facility Pool in accordance with Section 3.5, except, in either case, to the extent that any such modification is required by law or court order.

 

Section 3.7.            Servicer May Own Exchange Note and Notes.  The Servicer, and any Affiliate of the Servicer, may, in its individual or any other capacity, become the owner or pledgee of the 2012-B Exchange Note and/or the Notes with the same rights as it would have if it were not the Servicer or an Affiliate thereof, except as otherwise provided in the Servicing Agreement, this Servicing Supplement, the Credit and Security Agreement and the Indenture.  Except as set forth in the Servicing Agreement, this Servicing Supplement or in the other 2012-B Basic Documents, Notes so owned by or pledged to the Servicer or such Affiliate will have an equal and proportionate benefit under the Servicing Agreement and this Servicing Supplement.

 

Section 3.8.            Fees and Expenses.

 

(a)           Reference Pool Servicing Fee.

 

(i)            The “Reference Pool Servicing Fee” will, with respect to a Collection Period, be an amount equal to the sum of (A) the product of: (1) one-twelfth of 1.00%; times (2) the Pool Balance as of the last day of the preceding Collection Period (or the Cutoff Date for the first month) plus (B) the portion of the Reference Pool Servicing Fee for the immediately preceding Collection Period, if any, that was not paid on the related Payment Date.

 

(ii)           The Reference Pool Servicing Fee will be payable solely from, and the right of the Servicer to receive the Reference Pool Servicing Fee will be limited in recourse to, the Collections and other amounts applied to the payment of such fee pursuant to the Exchange Note Supplement.

 

(b)           Investment Earnings.  As provided in Section 4.2, the Servicer will be entitled to receive investment earnings on funds on deposit in the Bank Accounts as additional compensation for the performance of its duties under this Servicing Supplement, and losses, if any, and investment expenses resulting from the investment of funds on deposit in the Bank Accounts will be charged to the Servicer.

 

(c)           Additional Amounts.  As additional compensation for the performance of its duties under the Servicing Agreement and this Servicing Supplement and as reimbursement for expenses incurred in connection with such performance, the Servicer will be entitled to retain for its own account all Additional Amounts (or to withdraw and retain any Additional Amounts that nevertheless have been deposited into the Exchange Note Collection Account).  All Additional Amounts are the property of the Servicer.

 

Section 3.9.            Termination.  This Servicing Supplement will be terminated in the event that the Servicing Agreement is terminated in accordance therewith and may also be terminated at the option of the Servicer or the Holding Companies at any time following the payment in full of the 2012-B Exchange Note; provided, that the rights and obligations of the parties to this Servicing Supplement under Section 3.4 will survive any such termination.

 

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ARTICLE IV
 ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS

 

Section 4.1.            Bank Accounts

 

(a)           Establishment of Bank Accounts.  On or before the Exchange Note Issuance Date, the Servicer will establish four segregated trust accounts, each in the name of the Indenture Trustee at a Qualified Institution or a Qualified Trust Institution, to be designated as:

 

(i)            “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-B” that will be designated as the “Exchange Note Collection Account;”

 

(ii)           “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-B” that will be designated as the “Collection Account;”

 

(iii)          “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-B” that will be designated as the “Principal Payment Account;” and

 

(iv)          “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-B” that will be designated as the “Reserve Account.”

 

Initially, the Exchange Note Collection Account will be account number 879706, the Collection Account will be account number 879707, the Principal Payment Account will be account number 879708 and the Reserve Account will be account number 879709 and each such account will include any successor or replacement accounts thereto.

 

(b)           Control of the Bank Accounts.  Each of the Bank Accounts with respect to the 2012-B Reference Pool will be under the sole dominion and control of the Indenture Trustee, as secured party for the benefit of the 2012-B Secured Parties, so long as the Bank Accounts remain subject to the Lien of the Indenture; provided, that, (i) following the payment in full of the Notes and the release of the Bank Accounts from the Lien of the Indenture, the Exchange Note Collection Account will be under the sole dominion and control of the Collateral Agent and (ii) following the payment in full of the 2012-B Exchange Note, the Exchange Note Collection Account will be under the sole dominion and control of the Borrowers.  However, the Servicer may make deposits to or request the Indenture Trustee (or, after the Note Balance of the Notes has been reduced to zero, the Collateral Agent, and following the payment in full of the 2012-B Exchange Note, the Borrowers) to make deposits to or withdrawals from the Exchange Note Collection Account in accordance with the Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement and this Servicing Supplement.  All monies deposited in the Exchange Note Collection Account pursuant to the Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement or this Servicing Supplement will be held (i) until the Note Balance of the Notes has been reduced to zero and the Bank Accounts have been released from the Lien under the Indenture, by the Indenture Trustee, (ii) until the payment in full of the 2012-B Exchange Note, by the Collateral Agent and (iii) following the payment in full of the 2012-B Exchange Note, by or on behalf of the Borrowers, and in each case will be applied only upon the terms and conditions of the 2012-B Basic Documents, as applicable.  The authority of the Servicer

 

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to make deposits to the Bank Accounts is revocable at any time (i) by the Indenture Trustee until the Note Balance of the Notes has been reduced to zero, (ii) then, by the Collateral Agent until the payment in full of the 2012-B Exchange Note and (iii) thereafter by the Borrowers.

 

(c)           Agreement with Depository Institution.  The Bank Accounts will only be established at a Qualified Institution or Qualified Trust Institution that complies with the requirements set forth in Section 5.2(d) of the Servicing Agreement.

 

Section 4.2.            Deposits and Payments.

 

(a)           If Ford Credit’s short term unsecured debt is rated at least “P-1” by Moody’s and “F1” by Fitch (this rating requirement, the “Monthly Remittance Required Ratings”), Ford Credit may remit 2012-B Collections on the Business Day preceding each Payment Date, or with satisfaction of the Rating Agency Condition, on each Payment Date.

 

(b)           If Ford Credit’s short term unsecured debt is not rated at least equal to the Monthly Remittance Required Ratings or a Servicer Event of Default occurs, the Servicer will remit to the Exchange Note Collection Account:

 

(i)            on the Exchange Note Issuance Date, an amount equal to the sum of (A) the Cutoff Date Payahead Amount and (B) all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (in each case excluding Recoveries) that are Posted during the period from and including the Cutoff Date to and including the second Business Day preceding the 2012-B Closing Date;

 

(ii)           following the Exchange Note Issuance Date, an amount equal to all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (in each case excluding Recoveries) within two Business Days after the Posting Date for such amounts (including any such amounts Posted on the Business Day preceding the Exchange Note Issuance Date and on the Exchange Note Issuance Date); and

 

(iii)          all Administrative Reallocation Amounts, Active Lease Advances, Payment Extension Fees and Recoveries with respect to any Collection Period no later than the Business Day preceding the following Payment Date or, with satisfaction of the Rating Agency Condition, the following Payment Date.

 

(c)           Pending deposit in the Exchange Note Collection Account, the Servicer is not required to segregate 2012-B Collections or Payaheads from its own funds.

 

(d)           So long as Ford Credit remains the Servicer, Ford Credit, as Servicer, may make the deposits required by Section 4.2(a) net of:

 

(i)            Reference Pool Servicing Fees to be distributed pursuant to Section 3.8(a) to the Servicer with respect to such Collection Period; and

 

(ii)           Advance Reimbursement Amounts that the Servicer is permitted to retain pursuant to Section 4.3(b).

 

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Section 4.3.            Advances.

 

(a)           Advances by the Servicer.  The Servicer will make an advance for each Active Lease other than an Advance Payment Plan Lease and each Collection Period if, for such Lease and such Collection Period, the scheduled Base Payment exceeds the sum of (A) Active Lease Proceeds (which may be positive or negative) plus (B) the Payahead Draw, by depositing the amount of such excess (equal to the Active Lease Advance) into the Exchange Note Collection Account on the Business Day preceding the Payment Date immediately following such Collection Period or, with satisfaction of the Rating Agency Condition, on such Payment Date.  However, the Servicer will be required to make Active Lease Advances only to the extent that the Servicer, in its sole discretion, determines that such advances will be recoverable from subsequent 2012-B Collections (whether relating to such Lease and Leased Vehicle or any other Lease or Leased Vehicle) in the manner described in Section 4.3(b).

 

(b)           Reimbursement for Outstanding Advances.  During each Collection Period, the Servicer will be reimbursed for any outstanding Advance Balance with respect to a Lease for the preceding Collection Period (or, with respect to the first Collection Period, as of the Cutoff Date) by retaining the following amounts in the following order of priority (the amount so due with respect to any Lease and any Collection Period, the “Advance Reimbursement Amount”):

 

(i)            first, if such Lease is an Active Lease during such Collection Period, an amount equal to the lesser of (A) the sum of (1) Active Lease Proceeds, plus (2) the Administrative Reallocation Amount (if any), minus (3) the scheduled Base Payment, in each case with respect to such Lease and such Collection Period and (B) such Advance Balance;

 

(ii)           second, if such Lease is a Terminating Lease or a Closed Lease during such Collection Period, an amount equal to the lesser of (A) the sum of (1) the Terminating Lease Proceeds, plus (2) the Closed Lease Proceeds, plus (3) the Administrative Reallocation Amount (if any), in each case with respect to such Lease and such Collection Period and (B) such Advance Balance; and

 

(iii)          third, on and after the Collection Period that includes the Closed Date with respect to such Lease, an amount equal to the lesser of:

 

(A)                              the sum of all Active Lease Proceeds, Terminating Lease Proceeds, Closed Lease Proceeds and Administrative Reallocation Amounts (in each case not relating to such Lease) for such Collection Period; and

 

(B)                                the excess, if any, of (1) such Advance Balance over (2) the amount retained by the Servicer pursuant to Section 4.3(b)(ii) for the current Collection Period.

 

The Servicer may instruct the Indenture Trustee, for so long as the Notes are Outstanding, and thereafter, the Collateral Agent, to withdraw from the Exchange Note Collection Account and pay to the Servicer any amounts that the Servicer is entitled to retain pursuant to this Section 4.3(b) to the extent such amounts have been deposited in the Exchange Note Collection Account.  The Indenture Trustee or the Collateral Agent, as applicable, may, but is not required to, request from

 

10

 

the Servicer reasonable documentation (which may be provided by reference to the Servicer’s books and records) in connection with any such withdrawal instruction.

 

Section 4.4.            Repayment of Advances.  If a successor Servicer is appointed pursuant to the Servicing Agreement, the predecessor Servicer will be entitled to receive reimbursement for the Advance Balances outstanding on the date of termination of such predecessor Servicer in the manner specified in Section 4.3(b).  Any Advance Reimbursement Amount for any Lease will be applied (a) first to the Advance Balances outstanding on the date of termination of such predecessor Servicer and (b) second, to the remaining portion, if any, of the Advance Balances.

 

Section 4.5.            Trust Distribution Account.  The Depositor may cause the Owner Trustee to establish and maintain a segregated trust account in the name “U.S. Bank Trust National Association as Owner Trustee,” that is designated as the “Trust Distribution Account” and will promptly notify the Owner Trustee and the Indenture Trustee after the establishment of the Trust Distribution Account.  The Trust Distribution Account will be under the sole dominion and control of the Owner Trustee, except that the Indenture Trustee may make deposits to the Trust Distribution Account in accordance with the 2012-B Basic Documents.  All deposits to and withdrawals from the Trust Distribution Account will be made in accordance with the Indenture and the Trust Agreement.

 

Section 4.6.            Reserve Deposits and Withdrawals.

 

(a)           On the 2012-B Closing Date, the Depositor will deposit, or cause to be deposited, the Reserve Initial Deposit in the Reserve Account from the net proceeds of the sale of the Notes.

 

(b)           At least two Business Days before each Payment Date, the Servicer will calculate the Reserve Account Draw Amount for such Payment Date and will instruct the Indenture Trustee to withdraw such amount from the Reserve Account and apply it in accordance with Section 5.1 of the Exchange Note Supplement.

 

(c)           At least two Business Days before each Payment Date, the Servicer will instruct the Indenture Trustee (based on the most recent Monthly Investor Report) to make the withdrawals, deposits, distributions and payments required to be made on such Payment Date pursuant to Section 5.1 of the Exchange Note Supplement and Section 8.2 of the Indenture.

 

ARTICLE V
 TERMINATION

 

Section 5.1.            Clean-Up Call.

 

(a)           If the Note Balance is equal to or less than 5% of the initial aggregate Note Balance on the last day of any Collection Period, the Servicer has the option to purchase the 2012-B Exchange Note in whole but not in part.  The Servicer may exercise its option to purchase the 2012-B Exchange Note by (i) notifying the Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee and the Rating Agencies at least ten days prior to the Payment Date related to such Collection Period (which Payment Date will be the Exchange Note Purchase Date) and (ii) depositing in the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price in immediately available funds by 10:00 a.m. (New York

 

11

 

City time) on the Business Day preceding the Exchange Note Purchase Date (or, with satisfaction of the Rating Agency Condition, on the Exchange Note Purchase Date).  Notwithstanding the foregoing, the Servicer will not be permitted to purchase the 2012-B Exchange Note unless the Exchange Note Purchase Price, together with amounts in the Collection Account, is greater than or equal to the sum of (A) the Note Redemption Price for the Notes and (B) all fees and expenses of the Issuer, including all amounts due to the Indenture Trustee under the Indenture.

 

(b)           For so long as the Servicer and the Lender under the Credit and Security Agreement are the same entity, upon purchase of the 2012-B Exchange Note by the Servicer pursuant to Section 5.1(a), the Servicer may, by notice to the Borrowers, the Lender, the Collateral Agent and the Administrative Agent, request that the 2012-B Exchange Note be cancelled and the Leases and related Leased Vehicles be reallocated to the Revolving Facility Pool.

 

ARTICLE VI
 REPORTS AND NOTICES

 

Section 6.1.            Monthly Investor Reports.  At least two Business Days before each Payment Date, the Servicer will deliver to the Owner Trustee, the Indenture Trustee, the Note Paying Agent, the Depositor and, if requested, the Rating Agencies, a servicing report substantially in the form of Exhibit B (the “Monthly Investor Report”) for the preceding Collection Period and such Payment Date.  A Responsible Person of the Servicer will certify that the information in the Monthly Investor Report is accurate in all material respects.

 

Section 6.2.            Notices and Certificates Received by or Delivered by the Servicer Under the Servicing Agreement.  The Servicer will deliver any notice or certificate received by it or delivered by it under the Servicing Agreement to the Owner Trustee and the Indenture Trustee within five Business Days of such receipt or delivery by the Servicer.

 

Section 6.3.            Notice of Servicer Event of Default.  The Servicer will notify the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency of any Facility Servicer Event of Default or Exchange Note Servicer Event of Default or any event that with the giving of notice or lapse of time, or both, would become a Facility Servicer Event of Default or Exchange Note Servicer Event of Default, no later than five Business Days after a Responsible Person of the Servicer obtains actual knowledge of such event.

 

Section 6.4.            Annual Statement as to Compliance.  To the extent required by Regulation AB, the Servicer will deliver to the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency within 90 days after the end of each year beginning with the year after the 2012-B Closing Date, an Officer’s Certificate, dated as of December 31 of the preceding year, signed by a Responsible Person of the Servicer to the effect that (i) a review of the Servicer’s activities during the preceding year (or, in the case of the first certificate, the portion of the preceding year since the 2012-B Closing Date) and of its performance under this Agreement has been made under such Responsible Person’s supervision and (ii) to such Responsible Person’s knowledge, based on such review, the Servicer has fulfilled in all material respects all of its obligations under this Agreement throughout such year (or applicable portion of such year), or, if there has been a failure to fulfill any such obligation in any material respect, specifically identifying each such failure known to such Responsible Person and the nature and status of such failure.  The Officer’s Certificate

 

12

 

referred to in this Section 6.4 is deemed to be the Officer’s Certificate required under Section 9.3 of the Servicing Agreement.  A copy of the Officer’s Certificate referred to in this Section 6.4 may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

Section 6.5.            Compliance with Obligations under Sarbanes-Oxley Act.  If directed by the Indenture Administrator, the Servicer will prepare, execute and deliver all certificates or other documents required to be delivered by the Issuer pursuant to the Sarbanes-Oxley Act of 2002.

 

Section 6.6.            Report on Assessment of Compliance with Servicing Criteria and Attestation.  The Servicer will:

 

(i)    deliver to the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency, a report, dated as of December 31 of the preceding year, on its assessment of compliance with the minimum servicing criteria during the preceding year, including disclosure of any identified material instance of non-compliance identified by the Servicer, as specified by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB under the Securities Act; and

 

(ii)   cause a firm of registered public accountants that is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act to deliver an attestation report that satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122 of Regulation AB, as applicable, on the assessment of compliance with servicing criteria with respect to the prior year.  Such attestation report will be addressed to the board of directors of the Servicer and the Servicer will deliver copies to the Issuer, the Owner Trustee, the Depositor and the Indenture Trustee.  Such attestation will be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.  The firm may render other services to the Servicer, the Depositor or Ford Credit, but the firm must indicate in each attestation report that it is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act.

 

The reports referred to in this Section 6.6 will be delivered within 90 days after the end of each year, beginning in the year after the 2012-B Closing Date.  A copy of the reports referred to in this Section 6.6 may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

Section 6.7.            Delivery of Tax Related Information.  To the extent required by law, the Servicer will deliver to the Owner Trustee for distribution to the holder of the Residual Interest information for the preparation of such holder’s federal and State income tax returns.

 

Section 6.8.            Termination of Reporting Obligation.  The Servicer’s obligation to deliver or cause the delivery of reports under this Article VI, other than tax reports under Section 6.7, will terminate upon the payment in full of the Notes, including by redemption in whole as contemplated by Section 10.1 of the Indenture.

 

Section 6.9.            Authorized Persons of Servicer.  On or prior to the Closing Date, the Servicer will provide notice to the Indenture Trustee and the Owner Trustee specifying (a) each

 

13

 

Person who will be authorized to provide instructions and directions to the Indenture Trustee and the Owner Trustee on behalf of the Servicer and (b) each Person who is a Responsible Person with respect to the Servicer, which Persons may be changed from time to time by notice to the Indenture Trustee and the Owner Trustee.

 

Section 6.10.          Execution of Securities and Exchange Commission Filings.  To the extent permitted by law, the Servicer is authorized to execute and, upon the request of the Issuer (or the Administrator on its behalf), will execute, on behalf of the Issuer, any Securities and Exchange Commission filings required to be filed by the Issuer pursuant to Section 7.3 of the Indenture.

 

ARTICLE VII
 MISCELLANEOUS

 

Section 7.1.            Amendments.

 

(a)           This Servicing Supplement may be amended in accordance with Section 10.1 of the Servicing Agreement; provided, however, that the Indenture Trustee will provide or withhold consent with respect to any proposed amendment to this Servicing Supplement or the Servicing Agreement that materially affects the rights or obligations of the Servicer with respect to the Collateral Specified Interests and the 2012-B Reference Pool, only as directed by the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.

 

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

 

Section 7.2.            Third-Party Beneficiaries of the Servicing Agreement and this Servicing Supplement.  The Servicing Agreement and this Servicing Supplement will inure to the benefit of and be binding upon the parties to this Servicing Supplement and their assigns (including the Holders of the Collateral Specified Interest Certificates as assignees of the Holding Companies) as well as any 2012-B Exchange Noteholder, the Owner Trustee and the Indenture Trustee.

 

Section 7.3.            No Petition.  Each party to this Servicing Supplement covenants that for a period of one year and one day (or, if longer, any applicable preference period) after payment in full of the Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all holders of any other Securities (as defined in the related Titling Company Agreement) the payments on which are derived in any material part from amounts received with respect to any Titling Company Assets (as defined in the applicable Titling Company Agreements), it will not institute against, or join any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the 2012-B Exchange Note, the Notes, this Servicing Supplement or any of the other 2012-B Basic Documents and agrees it will not cooperate with or encourage others to file a bankruptcy petition against the Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the Collateral Specified Interest Certificates during the same period.

 

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Section 7.4.            GOVERNING LAW.  THIS SERVICING SUPPLEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATION LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

Section 7.5.            Submission to Jurisdiction.  Each party to this Servicing Supplement 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 purposes of all legal proceedings arising out of or relating to this Servicing Supplement or the transactions contemplated by this Servicing Supplement or by the other 2012-B Basic Documents.  Each party to this Servicing Supplement irrevocably waives, to the fullest extent it may do so, any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 7.6.            WAIVER OF JURY TRIAL.  EACH PARTY TO THIS SERVICING SUPPLEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY OTHER 2012-B BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY SUCH OTHER 2012-B BASIC DOCUMENT.

 

Section 7.7.            Severability.  If any one or more of the covenants, agreements, provisions or terms of this Servicing Supplement is held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms will be deemed severable from the remaining covenants, agreements, provisions or terms of this Servicing Supplement and will in no way affect the validity, legality or enforceability of the other provisions of this Servicing Supplement.

 

Section 7.8.            Counterparts.  This Servicing Supplement may be executed in any number of counterparts, each of which will be an original, and all of which will together constitute one and the same instrument.

 

Section 7.9.            Headings.  The various headings in this Servicing Supplement are included for convenience only and will not affect the meaning or interpretation of any provision of this Servicing Supplement.

 

Section 7.10.          Conflict with Servicing Agreement.  In the event of any conflict between this Servicing Supplement (or any portion thereof) and the Servicing Agreement, the terms of this Servicing Supplement will prevail.

 

[Remainder of Page Intentionally Left Blank]

 

15

 

EXECUTED BY:

 

	
 
    	
FORD   MOTOR CREDIT COMPANY LLC,
    
	
 
    	
 
    	
as   Servicer with respect to the Collateral Specified Interests and the 2012-B   Reference Pool and as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
CAB   EAST HOLDINGS, LLC,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests designated   as the “Collateral Series,” as Holder of a Collateral Specified Interest   Certificate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CAB   WEST HOLDINGS CORPORATION,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests designated   as the “Collateral Series,” as Holder of a Collateral Specified Interest   Certificate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to the Servicing Supplement]

 

 

	
 
    	
FCALM   HOLDINGS CORPORATION,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests designated   as the “Collateral Series,” as Holder of a Collateral Specified Interest   Certificate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
HTD   LEASING LLC,
    
	
 
    	
 
    	
as   Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

	
AGREED AND ACCEPTED BY:
    
	
 
    	
 
    
	
U.S. BANK NATIONAL ASSOCIATION,
    
	
 
    	
as   Titling Company Registrar with respect to each of the Titling Companies, on   behalf of the Titling Companies
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to the Servicing Supplement]

 

 

	
AGREED AND ACCEPTED FOR PURPOSES OF SECTION 7.1(a)   BY:
    	
 
    
	
 
    	
 
    
	
FORD CREDIT AUTO LEASE TRUST 2012-B
    
	
 
    	
 
    	
 
    
	
By:
    	
U.S.   Bank Trust National Association, not in its individual capacity but solely as   Owner Trustee of Ford Credit Auto Lease Trust 2012-B
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
THE BANK OF NEW YORK MELLON,
    
	
 
    	
not   in its individual capacity but solely as Indenture Trustee
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
				

 

[Signature Page to the Servicing Supplement]

 

 

Exhibit A

 

Schedule of Collateral Leases and Collateral Leased Vehicles in 2012-B Reference Pool

 

(On File with Collateral Agent)

 

EA-1

 

Exhibit B

 

Form Of Monthly Investor Report

 

EB-1Exhibit 10.2

 

EXECUTION VERSION

 

FUEL DISTRIBUTION AGREEMENT

 

This Fuel Distribution Agreement (the “Agreement”) made and entered into between Susser Petroleum Operating Company LLC, with a business address of 555 East Airtex Drive, Houston, Texas 77073 (the “Seller”), and Susser Holdings Corporation, Stripes LLC and Susser Petroluem Company LLC, each with a business address of 4525 Ayers, Corpus Christi, Texas 78415 (collectively, with all of their respective divisions, subsidiaries or affiliates, other than the Partnership as defined below, the “Purchaser” or “SHC”).  The above-named entities are sometimes referred to in this Agreement each as a “Party” and collectively as the “Parties.”

 

Seller is a subsidiary of Susser Petroleum Partners LP (the “Partnership”).  The Partnership, Susser Petroleum Partners GP LLC, the general partner of the Partnership (the “General Partner”), and SHC have entered into an Omnibus Agreement of even date herewith (the “Omnibus Agreement”) in which the Partnership and SHC agree to enter into the SHC Distribution Contract for the exclusive right and obligation of the Partnership to distribute motor fuels sold by SHC.  This Agreement shall serve as the SHC Distribution Contract under which Seller shall perform the obligations of the Partnership.

 

Unless otherwise defined herein, all capitalized terms shall have the meanings ascribed to them in the Omnibus Agreement.

 

WITNESSETH:

 

In consideration of the mutual promises herein contained, Seller shall sell and deliver to Purchaser its requirements for all branded and unbranded motor fuels (i) required by Purchaser for resale at all SHC Stores and SHC Consignment Contract sites (all SHC Stores and SHC Consignment Contract sites referred to hereinafter collectively as the “SHC Sites”) or (ii) otherwise required by Purchaser (the “Other SHC Volumes”), subject to the permitted exceptions set forth in Section 2.1(c) of the Omnibus Agreement. Purchaser shall purchase, receive and pay for such motor fuels, including branded product(s) under designated trademarks, service marks, trade names, brand names, or other brand identifications (the “Proprietary Marks”) and other unbranded products, of the kind and in the quantities and under the terms and conditions specifically set forth in the Commodity Schedule annexed hereto and made a part hereof.  Seller’s suppliers of branded products under each such supplier’s Proprietary Marks, unbranded products and their successor(s) and assigns are each referred to hereinafter as the “Supplier” and collectively as “Suppliers”.

 

1.                                       Term.  This Agreement shall commence on the Effective Date (defined below), and shall remain in effect until terminated, as set forth in Section 23 below (the “Term”).

 

2.                                       Locations.  All SHC Sites that purchase motor fuels for resale are subject to this Agreement until the applicable termination date for such SHC Site set forth in Section 25 of this Agreement or such SHC Site is removed from this Agreement in accordance with Section 3 of this Agreement.

 

3.                                       Permitted Removal of Locations.

 

(a)                                  Purchaser may only remove SHC Stores or SHC Consignment Contracts from this Agreement in the event (i) that SHC makes a Permitted Sale, Closure or Conversion of an SHC Store or (ii) an SHC Consignment Contract terminates and is not renewed.  For purposes of this Agreement, a “Permitted Sale, Closure or Conversion” shall include any sale or closure of an SHC Store or conversion of any SHC Store from sales by Purchaser to a contract with any third party to sell motor fuel on a consignment basis (where the third party, as consignor, holds title to the motor fuel until it is sold to the retail customers) where (A) such SHC Store was supplied at the Partnership’s Cost per Gallon plus the Alternate Fuel Sales Rate (“AFSR Stores”), (B) SHC has agreed to substitute one or more locations comprising estimated equivalent volumes (based on volumes sold at the applicable SHC Site during the most recently completed four quarter period) at the same price per gallon as the removed SHC Site within six (6) months of closure, sale or conversion, (C) SHC has received consent of Partnership for sale, closure or conversion or (D) such sale, closure or conversion does not cause the aggregate number of SHC Sites closed, sold or converted in any fiscal year to exceed twenty (20) SHC Sites.

 

1

 

(b)                                 In order to add or remove any SHC Store or SHC Consignment Contract to or from this Agreement pursuant to Section 3(a), Purchaser shall provide at least sixty (60) days’ advance written or electronic notice to Seller indicating site location, address, estimated volume by product, brand and effective date of such change (“Supply Change Request”).  If such Supply Change Request involves a brand request for a Supplier’s trademarks, Seller shall use commercially reasonable efforts to obtain authorization from the applicable Supplier for such brand.  If brand authorization is not obtained, unbranded product will be supplied.

 

4.                                       Products.  The Commodity Schedule forming a part of this Agreement is affixed at or before the signing hereof.  This Agreement may be amended from time to time by adding additional schedules or deleting or substituting revised schedules.  Such schedules executed by an authorized representative of Seller and by Purchaser shall be become a part of this Agreement.

 

5.                                       Quantity.  Seller shall sell and deliver to Purchaser and Purchaser shall purchase and receive from Seller Purchaser’s requirements of the product(s) covered by this Agreement as Purchaser may require from time to time until the applicable termination date with respect to any such volumes set forth in Section 25 of this Agreement.  However, if during any period of this Agreement, the amount of any motor fuel volumes that Seller is required to deliver to Purchaser is prescribed by government rules, regulations or orders, or if for any reason the Seller’s supplies of motor fuel are inadequate to meet the needs of Purchaser and its other customers, the Seller, in its sole discretion, may allocate motor fuel to Purchaser and its other customers and any shortfall in volumes requested by Purchaser shall not be deemed to be a breach of this Agreement.  In the event that the Seller is unable to distribute all motor fuel volumes that Purchaser desires to purchase from the Seller, Purchaser may purchase from third parties its requirements of any motor fuel volumes in excess of the amounts of such motor fuel supplied by the Seller.

 

6.                                       Price/Method of Payment.  (a) The price of the product(s) covered by this Agreement shall be as stated in the Commodity Schedule.  Purchaser shall initially pay within seven (7) days of delivery, which may be shortened or lengthened (provided no longer than thirty (30) days) as necessary to be concurrent with Seller’s applicable payment due date to Supplier, by way of Electronic Funds Transfer (“EFT”), or such other means approved by Seller, for all goods delivered to Purchaser hereunder.

 

(b)                                 Purchaser will establish a commercial account with a financial institution that provides EFT services and will authorize Seller to initiate transfers of funds between Purchaser’s account and Seller’s accounts for payment of all amounts due to Seller under this Agreement.  Should any EFT transaction be rejected by Purchaser’s financial institution for any reason, Seller may, at its sole discretion, require subsequent payments be made in cash or by other means satisfactory to Seller.

 

(c)                                  If at any time the financial responsibility of Purchaser shall become impaired or unsatisfactory to Seller, or should Purchaser be in arrears in his accounts with Seller, Seller may require, as a condition of making further deliveries under this Agreement, payment by Purchaser of all past due accounts and cash payment prior to, or upon, all such future deliveries or may require Purchaser to provide to Seller adequate assurance of its performance.

 

(d)                                 Payments not received on the applicable due date will bear interest at a rate of 10% per annum.

 

7.                                       Control.  Purchaser is an independent business with the exclusive right to direct and control the business operation at the SHC Sites, including the establishment of the prices at which products are sold.

 

8.                                       Liability.  Neither Seller nor Supplier shall be liable to Purchaser or to any other person for any damage to or loss of property, or for injury to or death of persons, or for the violation by Purchaser or any other person, of any governmental statute, law, regulation, rule, or ordinance, arising from the operation or activities of Purchaser or any other person pursuant to this Agreement.  Purchaser shall indemnify, protect, defend, and save Seller and Supplier harmless from and against any and all losses, claims, liabilities, environmental cleanup costs, fines, penalties, suits and actions, judgments and costs, including attorneys’ fees and the costs of litigation, which shall arise from or grow out of any injury to or death of persons, or damage to or loss of property, or violation by Purchaser or any other person, of any governmental statute, law, regulation, rule, or ordinance, directly or indirectly resulting from, or in any way connected with (i) Purchaser’s performance of this Agreement, (ii) operation of Purchaser, or activities of any other person, at the SHC Sites, or (iii) the condition of the SHC Sites or of the adjoining streets, sidewalks or ways, irrespective of whether such injury, death, damage or loss is sustained by Purchaser or any other person, firm or corporation which may seek to hold Seller liable.  The existence or non-existence of any insurance that may be

 

2

 

required under this Agreement will not limit Purchaser’s indemnity or other obligations under this Agreement.  This indemnity shall survive the termination or nonrenewal of this Agreement.

 

9.                                       Credit Cards.  (a) As long as Supplier accepts specified credit cards, fleet cards, debit cards, or other similar transaction authorization cards (the “Transaction Cards”), Purchaser shall accept and honor all Transaction Cards identified in Supplier’s Transaction Card manuals or other guidelines (“Card Guide”) or agreements, whether in written or electronic form, for the purchase of authorized products and services at all locations branded with Supplier’s Brand.

 

(b)                                 For each transaction not authorized, disputed by a customer, or otherwise subject to charge back under the Card Guide, Seller may either charge the amount to Purchaser’s account or require Purchaser to make immediate refund to Seller, including refund by draft or EFT initiated by Seller, without any deduction for any processing fee.

 

(c)                                  Purchaser acknowledges receipt of a copy of the Card Guide and shall comply fully with the operating rules, terms and conditions thereof.  Without limiting any rights or remedies available to Seller, if Purchaser fails to comply with this paragraph 8, Seller or Supplier may limit or terminate Purchaser’s right to participate in Supplier’s Transaction Card program or Purchaser’s right to use Supplier’s Proprietary Marks.

 

(d)                                 Purchaser understands and acknowledges that the Payment Card Industry Data Security Standard as amended from time to time (the “PCI DSS”) contains clearly defined standards setting forth the duties of merchants, like the Purchaser, to secure sensitive cardholder data.  Purchaser is and shall remain informed of the PCI DSS as the PCI DSS pertains to the Purchaser’s business at the SHC Sites.  In addition to the requirements of the Card Guide, Purchaser shall at all times during the term of this Agreement, and at its sole expense, (i) comply with the PCI DSS; (ii) cause all point-of-sale (“POS”) and other related network hardware and software at the SHC Sites to be, and remain, PCI DSS certified and compliant; (iii) regularly monitor, test, and/or assess the POS and related hardware and software at the SHC Sites pursuant to the PCI DSS; and (iv) permit Seller and/or Supplier and/or Transaction Card representative to inspect and/or test the POS and other related network hardware and software at the SHC Sites.

 

(e)                                  Purchaser shall indemnify, defend and hold Seller harmless for any and all losses, fines, penalties, damages, costs or expenses including without limitation attorney’s fees, arising out of the Purchaser’s breach or violation of, or failure to comply with, the PCI DSS or the Card Guide.  The indemnity provision contained in this subparagraph (e) to this paragraph 8 shall survive termination of this Agreement.

 

10.                                 Delivery/Title/Risk of Loss.  Delivery, passage of title and risk of loss of the product(s) covered by this Agreement shall be as set forth in the attached Commodity Schedule.

 

11.                                 Taxes.  It is agreed that any duty, tax, fee or other charge Seller may be required to collect or pay under any law now in effect or hereafter enacted with respect to the production, manufacture, inspection, transportation, storage, sale, delivery or use of the product(s) covered by this Agreement shall be added to the prices to be paid by Purchaser for product(s) purchased hereunder.  If Purchaser claims exemption from any of the aforesaid taxes, then Purchaser shall furnish Seller with a properly completed and executed exemption certificate in the form prescribed by the appropriate taxing authority in lieu of payment to such taxes or reimbursement of such taxes to Seller.

 

12.                                 Failure To Perform.  (a) Any delays in or failure of performance of either party hereto shall not constitute default hereunder or give rise to any claims for damages if and to the extent that such delay or failure is caused by occurrences beyond the reasonable control of the affected party which, by the exercise of reasonable diligence, said party is unable to prevent or provide against, including, but not limited to, acts of God or the public enemy; expropriation or confiscation of facilities; compliance with any order or request of any governmental authority; acts of war, rebellion, terror, or sabotage or damage resulting therefrom; embargoes or other import or export restrictions; fires, floods, storms, explosions, accidents, or breakdowns; riots; strikes or other concerted acts of workers, whether direct or indirect; or any other causes whether or not of the same class or kind as those specifically above named .  A party whose performance is affected by any of the causes set forth in the preceding sentence shall give prompt written notice thereof to the other party.

 

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(b)                                 Seller shall be under no obligation to make deliveries hereunder at any time when in Seller’s sole judgment it has reason to believe that such delivery would likely cause strikes to be called against it or cause its properties to be picketed.

 

(c)                                  Seller shall not be required to make up deliveries omitted on account of any of the causes set forth in subparagraph (a) above.

 

(d)                                 Nothing in this paragraph shall excuse Purchaser from making payment when due for deliveries made under the Agreement.

 

13.                                 Determination of Quantity and Quality.  The quantity and quality of product(s) sold hereunder shall be for all purposes conclusively deemed to be the quantity and quality set forth in Seller’s document of delivery unless, within seventy-two (72) hours of the time of delivery, Purchaser delivers to Seller written notice of any claimed shortage in quantity or claimed deviation in quality, or where discovery of any such shortage or deviation could not reasonably have been discovered by careful inspection at the time of delivery, within three (3) days after discovery.  Purchaser’s written notice, or the absence thereof, shall be conclusive with respect to the fact of and the time and date of notice under this paragraph.  Time is of the essence in complying with this provision.

 

14.                                 Trademarks.  (a) Subject to the approval of the applicable Suppliers, Seller grants to Purchaser the non-exclusive right to use such Supplier’s Proprietary Marks, if applicable, at the SHC Sites in connection with the advertising, marketing, and resale of the branded petroleum products purchased from Seller under this Agreement.  Purchaser agrees that with respect to any SHC Site where it sells branded product, petroleum products of other Suppliers or unbranded products will not be sold by Purchaser under the applicable Supplier’s Proprietary Marks.  Purchaser understands, acknowledges, and agrees that the applicable Suppliers may promulgate from time to time standards, policies, guidelines, procedures, marketing programs and other requirements (“Image and Operations Guidelines”) regarding image, signage, appearance, station operations, and other matters related to the sale of motor fuels under the Proprietary Marks of such Suppliers.  Purchaser shall, at its own expense, comply fully with the Image and Operations Guidelines of the applicable Suppliers and cause its employees to do the same.

 

(b)                                 Subject to Purchaser’s approval, Seller shall have the right to substitute the Proprietary Marks of another Supplier or any new supplier for any existing Supplier for any SHC Site (each such substitute, a “Substituted Supplier”).  In the event of such substitution, all references to the Supplier in this Agreement shall be deemed to refer to the Substituted Supplier and all references to the Proprietary Marks shall be deemed to refer to the trademarks, brand names, and/or other brand identifications of said Substituted Supplier.

 

(c)                                  Upon sixty (60) days’ advance written or electronic notice to Seller, Purchaser may request a change of brand at any SHC Site by submitting a Supply Change Request as noted in Paragraph 2 above.  Seller shall use commercially reasonable efforts to obtain authorization from the requested Supplier for such brand change.  If brand authorization is not obtained, Seller shall either (i) continue supplying the existing brand, or (ii) supply unbranded product, subject to Purchaser reimbursing Seller for any costs incurred by Seller as the result of any such rebranding (or attempted rebranding).

 

(d)                                 Any costs related to branding an SHC Site will be at the expense of Purchaser, and any penalties or costs, including, but not limited to, image repayment or recapture obligation, incurred by Seller as the result of debranding a site will be passed through to Purchaser.

 

(e)                                  Upon termination, nonrenewal, or expiration of this Agreement or prior thereto upon demand by Seller or Supplier, Purchaser’s right to use the Proprietary Marks will terminate, and Purchaser shall discontinue the posting, mounting, display or other use of the applicable Suppliers’ Proprietary Marks.  In the event that Purchaser fails to do so to the satisfaction of Seller or Supplier, subject to applicable law, Seller and Supplier (i) shall have the right to cause any and all signage, placards, and other displays bearing the Proprietary Marks to be removed from the SHC Sites; and (ii) shall have the right to use any means necessary to remove, cover or obliterate the Proprietary Marks, including entry to the SHC Sites to do so.  In the event the Seller or Supplier take any such action hereunder, Purchaser shall bear all costs and expenses thereof, including without limitation the costs of removing, obliterating, or covering the Proprietary Marks and attorney fees and other legal costs and expenses.  Under no circumstances will Purchaser display signage bearing the Proprietary Marks of the applicable Supplier at any SHC Site without the prior written approval of Seller.

 

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(f)                                    Purchaser acknowledges and understands that it is not an owner or a licensee of the Proprietary Marks.  Purchaser shall not mix, commingle, blend, adulterate, or otherwise change the composition of any of the product(s) purchased hereunder and resold by Purchaser at a particular SHC Site under said Proprietary Marks of the Supplier of such SHC Site with other products or substances in any manner.

 

(g)                                 Seller and the applicable Suppliers are hereby given the right to enter the SHC Sites to examine at any time, and from time to time, the contents of Purchaser’s tanks or containers in which said product(s) purchased hereunder are stored and to take samples therefrom, and if in the opinion of Seller or Supplier any samples thus taken are not said product(s) and in the condition in which delivered by Seller to Purchaser then Seller may at its option terminate this Agreement.

 

(h)                                 Purchaser shall take no action, or otherwise do anything, or fail to do anything that will diminish, reduce, injure, dilute, or otherwise damage the value of the Proprietary Marks or trademarks or other identifications of Supplier.

 

15.                                 Inspection of Records; Audit.  Seller and Supplier have a right to inspect Purchaser’s operation of the businesses at the SHC Sites and to verify that Purchaser is complying with (a) all its contractual obligations contained in this Agreement; and (b) all federal, state and local laws and regulations pertaining to the environmental protection and trademark use.  Purchaser shall permit Seller and Supplier to enter the SHC Sites unimpeded to review and audit all station records including, but not limited to, all records of deliveries, sales and inventory reconciliation, to take samples of motor fuels stored at the SHC Sites, and to inspect equipment.  Seller and Supplier may, at any reasonable time and without prior notice, conduct a walk through and visual inspection of the SHC Sites.

 

16.                                 Customer Service and Complaints.  While using the Proprietary Marks, Purchaser shall render appropriate, prompt, efficient, courteous service at the SHC Stores to Purchaser’s customers for such product(s) and respond expeditiously to all complaints of such customers, making fair adjustment when appropriate.

 

17.                                 Quality, Specification or Name of Product.  From time to time, Seller’s Suppliers may change the quality, grade, specifications, or availability of products covered by this Agreement and in such event Seller may change or alter the quality, grade or specifications.  Seller may, in its discretion, upon giving notice to Purchaser, either change or alter (a) the quality, grade, or specifications of any product(s) covered by this Agreement or (b) the availability of any such product(s).  Any such change or discontinuation shall not affect the purchase requirements set forth in the Commodity Schedule attached hereto.  Seller shall give Purchaser written notice of discontinuance of the manufacture of any product(s) covered by this Agreement.  The Agreement shall terminate as to such discontinued product(s) when such notice is effective.

 

18.                                 Assignment.  Neither party shall transfer or assign its interest in this Agreement, in whole or in part, directly or indirectly, without the prior written consent of the other party.

 

19.                                 Waiver.  A Party may not waive the provisions of this Agreement except by a written instrument executed by that Party.  No failure or delay in exercising any right, power or privilege or requiring the satisfaction of any condition hereunder, and no course of dealing between the Parties operates as a waiver or estoppel of any right, remedy or condition.  No single or partial exercise of any right or remedy under this Agreement precludes any simultaneous or subsequent exercise of any other right, power or privilege.  The rights and remedies set forth in this Agreement are not exclusive of, but are cumulative to, any rights or remedies now or subsequently existing at law, in equity or by statute.  No waiver by either party of any breach of any of the covenants or conditions herein contained to be performed by the other party shall be construed as a waiver of any succeeding breach of the same or any other covenant or condition.  No assignment or transfer shall affect the continuing primary liability of Purchaser (which liability, following assignment or transfer shall be joint and several with the assignee).  No consent to any of the foregoing shall operate as a waiver in any subsequent instance.

 

20.                                 Environmental Compliance.  (a) Purchaser is and shall remain informed about and comply with all local, state and federal laws, statutes, regulations and ordinances related to environmental protection or compliance relevant to Purchaser’s operations at the SHC Sites, whether currently in effect or which may come into effect in the future, including, where applicable, obligations imposed on the “owner” and “operator” of an underground storage tank system (“UST”).  Purchaser acknowledges that it is aware of hazards or risks in handling or using motor fuel

 

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products.  Purchaser shall maintain compliance with all safety and health related governmental requirements concerning each product and shall take such steps as are reasonable and practicable to inform its employees, agents, contractors and customers of any hazards or risks associated with such product.

 

(b)                                 Purchaser shall comply with all applicable local, state and federal UST compliance requirements, whether currently in effect or which may come into effect in the future, including, but not limited to: (i) required inspections of any release detection equipment for USTs and product lines; (ii) required inspections of any automatic tank gauging equipment; and (iii) maintenance and required inspections of any vapor recovery equipment.

 

(c)                                  Purchaser shall make accurate daily physical measurement of all products stored in USTs and perform accurate daily and monthly reconciliation of such measurements with metered sales and product deliveries in accordance with Seller, state, local and federal requirements.  Purchaser shall develop and maintain accurate written records of the daily physical product measurements and daily and monthly reconciliation.  Purchaser shall immediately notify Seller and any appropriate local, state or federal governmental agency after discovery of any inventory loss or other condition which may be the result of a leaking UST or other equipment failure.  Purchaser shall immediately investigate and undertake all appropriate initial abatement and other emergency measures to contain, treat, mitigate and/or remediate a discharge, spill, or release of motor fuels or other petroleum products at the SHC Sites.  Purchaser and Seller shall cooperate at all times during any such investigation or remedial activity.

 

(d)                                 Purchaser is and shall remain informed about and comply with all applicable local, state and federal requirements related to the generation, handling, transportation, treatment, storage and/or disposal of solid or hazardous wastes.  Purchaser also shall implement appropriate recycling, waste management and waste minimization practices and procedures as necessary to remain in compliance with all applicable local, state and federal environmental protection and compliance requirements.

 

(e)                                  Purchaser agrees that representatives of Seller shall be permitted to enter upon the SHC Sites from time to time to perform physical measurements and reconciliation of product stored in USTs and to inspect and/or test any equipment and records used for complying with any local, state, or federal environmental protection or environmental compliance requirements, including, but not limited to, Purchaser’s reconciliation and inspection records.  However, Seller is not obligated to make any such inspections or tests.

 

(f)                                    Purchaser shall properly maintain all USTs, hoses, connections, and associated equipment at the SHC Sites.  Seller may, without liability to Purchaser, refuse to make delivery of products covered under this Agreement if Seller believes any UST, hose, connection, or associated equipment is not safely maintained or in compliance with applicable safety standards.  Purchaser shall not use the UST at the SHC Sites including, without limitation, the associated product lines, hoses, and motor fuel dispensing equipment, during the life of this Agreement for any purpose other than the storage, handling, marketing, and distribution of the Seller’s petroleum products.

 

(g)                                 Purchaser shall indemnify, defend, protect and hold Seller, its employees, officers, directors, managers, partners, equityholders, agents and affiliates harmless from and against any and all liabilities, losses, obligations, claims, damages (consequential or otherwise), penalties, suits, actions, judgments, costs and expenses (including attorneys’ fees) of whatever nature for personal injury (including death) of persons (including, without limitation, agents and employees of Seller or Purchaser) or property damage (including, without limitation, damage to the property of Seller or Purchaser), which may be imposed on, incurred by or asserted against Seller directly or indirectly, (i) caused in whole or in part by Purchaser’s failure to comply with the terms of this paragraph 19 or with any local, state or federal law, statute, regulation or ordinance, whether currently in effect or which may come into effect, related to environmental protection or environmental compliance, including those relating to USTs, or (ii) for any releases or discharges of petroleum products into the environment caused, in whole or in part, by the acts or omissions of Purchaser, its employees, agents, contractors, customers, licensees, or invitees.  This indemnity in no way limits, and is intended to be within the scope of, the general indemnity set forth in paragraph 7 hereof.  The terms and provisions of this paragraph 19 shall survive the expiration, nonrenewal, or termination of this Agreement.

 

21.                                 Notices.  All written notices required or permitted to be given by this Agreement may be sent by facsimile or mutually acceptable electronic means, a nationally recognized overnight courier service, first class mail or hand delivered and shall be deemed to be duly given if delivered personally or sent by certified or overnight mail to the address set forth above or to such other address as may be furnished by either party to the other in writing in

 

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accordance with the provisions of this paragraph.  The date of mailing shall be deemed the date of giving such notice, except for notice of change of address, which must be received to be effective.

 

22.                                 Equipment.  Purchaser shall provide all necessary buildings, improvements, equipment, tools, and like appliances for the sale of motor fuel at any location.

 

23.                                 Termination.

 

(a)                                  This Agreement shall terminate with respect to all volumes sold to SHC Stores and SHC Consignment Contract sites in operation by Purchaser as of the Effective Date of this Agreement (“Closing Date SHC Sites”) on a date that is ten (10) years from the Effective Date, unless an extension with respect to such volumes is mutually agreed upon in writing by the Parties.

 

(b)                                 This Agreement shall terminate with respect to all volumes sold to any Option Stores purchased by the Partnership on a date that is ten (10) years from the Option Closing Date for such Option Store, unless an extension with respect to such volumes is mutually agreed upon in writing by the Parties.

 

(c)                                  This Agreement shall terminate with respect to all volumes sold to all SHC Sites not identified in Section 22(a) or (b) and Other SHC Volumes on a date that is ten (10) years from the Effective Date, unless another termination date is mutually agreed upon in writing by the Parties in connection with any arrangement agreed to pursuant to Section 2.1(b)(i) of the Omnibus Agreement or an extension with respect to any such volumes is otherwise mutually agreed upon in writing by the Parties.

 

(d)                                 This Agreement shall terminate as specifically set forth in any section of this Agreement.  Seller may suspend deliveries or terminate this Agreement if: (i) Purchaser becomes insolvent or commits an act of bankruptcy or takes advantage of any law for the benefit of debtors or Purchaser’s creditors, or if a receiver is appointed for Purchaser; (ii) Purchaser breaches any provision of this Agreement, including without limitation failure to pay in a timely manner any sums due, failure to comply with other section(s) of this Agreement or any portion thereof, or upon assignment of the Agreement by Purchaser contrary to the Assignment section, or (iii) Purchaser is a corporation or other entity and loses its charter or is otherwise prevented from doing business in accordance with applicable law.

 

(e)                                  With one hundred eighty (180) days’ advance written notice, Purchaser may terminate this Agreement if Seller fails to cure a material breach within thirty (30) days of being notified in writing by Purchaser of such breach.

 

(f)                                    Upon Supplier’s revocation of Seller’s right to use or grant the use of its Proprietary Marks, Seller may, upon sixty (60) days’ prior notice, either terminate such affected SHC Sites from this Agreement, substitute another Supplier’s Proprietary Marks at Purchaser’s expense at such affected SHC Sites or supply unbranded products at such affected SHC Sites.  Seller will not be liable for the consequences of such loss.

 

(g)                                 Purchaser agrees not to engage in or permit any illegal or improper act or conduct, on or about the SHC Sites, which act or conduct is detrimental to Seller or any member of the public.  Subject to any other requirements of law, at the option of Seller, Seller may cease deliveries to the applicable SHC Sites until the illegal acts or conduct have been remedied to the satisfaction of Seller and the applicable Suppliers or terminate this Agreement with respect to the applicable SHC Sites without further notice, (i) upon the failure of Purchaser to desist from any such further acts or conduct after notice from Seller to do so, or (ii) upon Purchaser’s failure to pay any amount when and as due within forty-eight (48) hours of notice of such, and no forbearance, course of dealing, or prior payment shall affect these rights of termination.

 

(h)                                 Upon termination hereof or of Seller’s right to use or grant the use of Supplier’s Proprietary Marks, Seller or Supplier shall have the right, at its option, to enter upon the SHC Sites and to debrand, remove, paint out, or obliterate any signs, symbols or colors on said SHC Sites as to any of Supplier’s trademarks or on the buildings or equipment thereof which in Seller’s opinion would lead a patron to believe that such Supplier’s products are being offered for sale at the SHC Sites.

 

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(i)                                     Termination hereof by either party for any reason shall not relieve any party of any obligation theretofore accrued under this Agreement.

 

24.                                 Purchaser’s Insurance Requirements.  Purchaser shall obtain insurance of the type and coverage amounts that Seller may reasonably require from time to time consistent with past practices of Purchaser.  All such insurance will name Seller and Suppliers designated by Seller as additional insureds and will be primary as to any other existing, valid and collectible insurance.  If Seller so requires, Purchaser shall furnish Seller with certificates of such insurance that provide that coverage will not be canceled or materially changed prior to thirty (30) days’ advance written notice to Seller.  The insurance required hereunder in no way limits or restricts Purchaser’s obligations under the law or this Agreement as to indemnification of Seller.

 

25.                                 Nature of Agreement/No Third Party Beneficiary.  (a) In consideration of the granting and execution of this Agreement, it is agreed that there shall be no contractual obligation to extend or renew the period or terms of this Agreement in any way, and the parties agree that this Agreement shall not be considered or deemed to be any form of “joint venture” or “partnership” at the SHC Sites of Purchaser or elsewhere.  This Agreement shall bind the executors, administrators, personal representatives, assigns, and successors of the respective parties.

 

(b)                                 This Agreement is personal to the Purchaser and is intended for the sole use and benefit of Seller and Purchaser.  Nothing contained herein shall be deemed, interpreted, or construed to create, or express any intent to create, third party beneficiary rights in favor of any person or entity, except for any indemnified party (or other person entitled to be indemnified pursuant to this Agreement), and Seller and Purchaser specifically state and agree that no such intent exists.

 

26.                                 Compliance with Laws.  Without limitation of paragraph 20 above, Purchaser shall comply with all laws, statutes, regulations, ordinances, and rules of all applicable governmental authorities with respect to the operation of its business at the SHC Sites.  It is the intention of neither party to violate statutory nor common law and if any section, sentence, paragraph, clause or combination of same is in violation of any law, such sentence, paragraph, clause or combination of same shall be inoperative and the remainder of this Agreement shall remain binding upon the parties hereto.

 

27.                                 Express Warranties.  Seller warrants that the product(s) supplied hereunder will conform to the promises and affirmations of fact made in Seller’s current technical literature and printed advertisements, if any, related specifically to such product(s); that it will convey good title to the product(s) supplied hereunder, free of all liens, and that the product(s) supplied hereunder meet such specifications as have been expressly made a part of this Agreement.  THE FOREGOING WARRANTIES ARE EXCLUSIVE AND ARE IN LIEU OF ALL OTHER WARRANTIES, WHETHER WRITTEN, ORAL OR IMPLIED.  THE WARRANTY OF MERCHANTABILITY, IN OTHER RESPECTS THAN EXPRESSLY SET FORTH HEREIN, AND WARRANTY OF FITNESS FOR PARTICULAR PURPOSE, IN OTHER RESPECTS THAN EXPRESSLY SET FORTH HEREIN, ARE EXPRESSLY EXCLUDED AND DISCLAIMED.

 

28.                                 Non-Exclusive Territory.  Nothing in this Agreement grants Purchaser an exclusive territory to market and resell any petroleum products.  Seller reserves the right to market and sell, and authorize others to market and sell, petroleum products in any manner Seller chooses, including through its own retail outlets or through designated wholesalers or other retailers.

 

29.                                 Entire Agreement.  This Agreement, together with the Omnibus Agreement, cancels and supersedes all prior written and unwritten agreements, promises, and understandings between the parties pertaining to the matters covered under this Agreement, except any indebtedness owed to Seller by Purchaser, and is a final, complete and exclusive statement of the agreement between Seller and Purchaser.  This Agreement may be modified only by a writing signed by both of the parties or their duly authorized agent.  THERE ARE NO ORAL UNDERSTANDINGS, REPRESENTATIONS OR WARRANTIES AFFECTING IT.  EXECUTION OF THIS CONTRACT BY PURCHASER IS AN ACKNOWLEDGEMENT THAT NO REPRESENTATIONS NOT SET FORTH IN WRITING HEREIN HAVE BEEN MADE OR RELIED UPON BY PURCHASER.

 

30.                                  Damages.  NO CLAIM SHALL BE MADE UNDER THIS CONTRACT FOR SPECIAL, PUNITIVE, OR CONSEQUENTIAL DAMAGES.

 

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31.                                 Commencement.  Neither this Agreement nor any modification thereof shall be binding on Seller until and unless signed by an authorized representative of Seller.  Commencement of performance hereunder prior to signing as above stipulated in no case shall be construed as a waiver by Seller of this requirement.

 

32.                                 Accord.  The parties have discussed the provisions of this Agreement and find them fair and mutually satisfactory and further agree that in all respects the provisions are reasonable and of material significance to the relationship of the parties hereunder.

 

33.                                 Joint and Several Obligations.  All acknowledgments, representations, warranties, debts, and obligations of performance of Purchaser under this Agreement are made, and binding on all those signing this Agreement, jointly and severally as the Purchaser.

 

34.                                 Successors and Assigns.  This Agreement binds and benefits Purchaser and Seller and their respective permitted successors and assigns.

 

35.                                 Severability.  If any provision of this Agreement is determined by a court or arbitrator to be invalid, illegal or unenforceable, the remaining provisions of this Agreement shall remain in full force if the essential terms and conditions of this Agreement for each party remain valid, binding and enforceable.  If any provision of this Agreement is so broad as to be unenforceable, such provision shall be interpreted to be only so broad as enforceable.

 

36.                                 Counterparts.  The Parties may execute this Agreement in multiple counterparts, each of which constitutes an original, and all of which constitute only one agreement.  The signatures of all of the parties need not appear on the same counterpart, and delivery of an executed counterpart signature page by facsimile or other electronic transmission is as effective as executing and delivering this Agreement in the presence of the other parties to this Agreement.  This Agreement is effective upon delivery of one executed counterpart from each party to the other party.

 

37.                                 Governing Law.  The laws of the State of Texas (without giving effect to its conflicts of law principles) govern all matters arising out of or relating to this Agreement and all of the transactions it contemplates, including without limitation its validity, interpretation, construction, performance (including the details of performance) and enforcement.

 

38.                                 Survival.  Sections 8, 18, 19, 27, 30 and 37 shall survive the execution and delivery and termination or expiration of this Agreement.

 

39.                                 Headings.  The descriptive headings of the articles, sections and subsections of this Agreement are for convenience only and do not constitute a part of this Agreement.

 

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This Agreement shall be effective as of September 25, 2012 (the “Effective Date”).

 

	
SELLER:    Susser Petroleum Operating Company LLC
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/ E.V.   Bonner, Jr.
    	
 
    
	
 
    	
 
    
	
Print Name:
    	
E.V. Bonner, Jr.
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Executive Vice President,   Secretary & General Counsel
    
	
 
    	
 
    	
 
    
	
PURCHASER:  Susser Holdings   Corporation
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ E.V.   Bonner, Jr.
    	
 
    
	
 
    	
 
    
	
Print Name:
    	
E.V. Bonner, Jr.
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Executive Vice President, Secretary &   General Counsel
    
	
 
    	
 
    	
 
    
	
PURCHASER:  Stripes LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ E.V.   Bonner, Jr.
    	
 
    
	
 
    	
 
    
	
Print Name:
    	
E.V. Bonner, Jr.
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Executive Vice President,   Secretary & General Counsel
    
	
 
    	
 
    	
 
    
	
PURCHASER:  Susser Petroleum Company   LLC
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
/s/ E.V.   Bonner, Jr.
    	
 
    
	
 
    	
 
    
	
Print Name:
    	
E.V. Bonner, Jr.
    	
 
    
	
 
    	
 
    	
 
    
	
Title:
    	
Executive Vice President &   Secretary
    	
 
    
				

 

[Signature Page to Distribution Agreement]

 

 

COMMODITY SCHEDULE

 

This Commodity Schedule is attached to, and made a part of, a Fuel Distribution Agreement between Purchaser and Seller dated September 25, 2012 (the “Agreement”).  Unless otherwise indicated, the capitalized terms used in this Commodity Schedule shall have the same meaning used in the Agreement.

 

1.                                       Products:  All motor fuel products allowed by law to be sold to the general public including branded (to the extent Seller may obtain such branded product) and unbranded motor fuels and shall include, but not limited to, unleaded gasoline, plus unleaded gasoline, supreme unleaded gasoline, diesel fuel, ethanol, biodiesel, diesel exhaust fluid.  Gasoline products shall include conventional, reformulated and ethanol blended motor fuels.

 

2.                                       Quantity.  All of Purchaser’s requirements for Product, for delivery upon reasonable notice to Seller at the SHC Sites or as otherwise directed in writing by the Purchaser.

 

3.                                       Delivery.  Delivery shall be complete on unloading of the tank wagon or transport truck.

 

4.                                       Title.  Title to product covered under the Agreement shall pass to Purchaser as it is delivered to Purchaser’s tanks or other storage containers.

 

5.                                       Risk of Loss.  Risk of loss of product shall pass to Purchaser as it is delivered to Purchaser’s tanks or other storage containers.

 

6.                                       Inspection.  Purchaser shall have the right, at its expense, to have an inspection made at delivery point, provided such inspection shall not delay shipment.  Should Purchaser fail to make inspection, it shall accept Seller’s inspection and measurement.

 

7.                                       Price.  The Seller’s price per gallon to be paid by Purchaser shall be Seller’s net cost per gallon at the applicable terminal in effect at the time loading commences, plus (i) all applicable taxes and all fees, including State loading and environmental fees, if any, (ii) the cost of transporting the product to Purchaser and (iii) plus Seller’s Margin per gallon as set forth below for each SHC Site.  Seller’s net cost per gallon shall be determined in the same manner as past practice.  Seller’s cost for motor fuel sold out of its bulk inventories shall be based upon a transfer price consistent with past practice, or as mutually agreed between the parties.  All prices charged by Seller are subject to the provisions of applicable law.

 

Seller’s Margin for volumes purchased pursuant to this Agreement shall be as follows:

 

(i)                                     Seller’s Margin shall be equal to three cents ($.03) per gallon for all volumes sold to Closing Date SHC Sites and Option Stores purchased by the Partnership.

 

(ii)                                  Seller’s Margin shall be the Alternate Fuel Sales Rate for all volumes sold to all SHC Stores, SHC Consignment Contract sites not identified in Section 22(a) or (b) of this Agreement or Other SHC Volumes, unless a different rate is mutually agreed upon in writing by the Parties with respect to any such volumes.  For the avoidance of doubt, as provided in the Omnibus Agreement, the Alternate Fuel Sales Rate will not be recalculated or adjusted on an annual basis or otherwise, in respect of an SHC Store, once Seller commences deliveries to such SHC Store pursuant to this Agreement.

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