Document:

exv10w3

Exhibit 10.3

 

SECOND-TIER SALE AGREEMENT

between

FORD CREDIT AUTO LEASE TWO LLC,

acting with respect to its Series of

limited liability company interests designated as

the “20_-_ Series”, as Depositor

and

FORD CREDIT AUTO LEASE TRUST 20_-_ ,

as Issuer

Dated as of _______, 20__

 

 

TABLE OF CONTENTS

	 	 	 	 	 

	ARTICLE I USAGE AND DEFINITIONS
	 	 	1	 
	Section 1.1. Usage and Definitions
	 	 	1	 
	 
	ARTICLE II SALE OF THE SECOND-TIER ASSETS
	 	 	1	 
	Section 2.1. Sale of the Second-Tier Assets.
	 	 	1	 
	Section 2.2. Closing; Further Assignments.
	 	 	2	 
	Section 2.3. Intent; Savings Clause
	 	 	2	 
	 
	ARTICLE III REPRESENTATIONS AND WARRANTIES
	 	 	2	 
	Section 3.1. Representations and Warranties of the Issuer
	 	 	2	 
	Section 3.2. Representations and Warranties of the Depositor
	 	 	3	 
	Section 3.3. Representations of the Depositor and the Issuer
	 	 	5	 
	 
	ARTICLE IV CONDITIONS
	 	 	5	 
	Section 4.1. Conditions to Obligation of the Issuer
	 	 	5	 
	Section 4.2. Conditions to Obligation of the Depositor
	 	 	5	 
	Section 4.3. Deemed Satisfaction of Conditions
	 	 	5	 
	 
	ARTICLE V COVENANTS OF THE DEPOSITOR
	 	 	6	 
	Section 5.1. Protection of Right, Title and Interest to the Second-Tier Assets.
	 	 	6	 
	Section 5.2. Other Liens or Interests
	 	 	6	 
	Section 5.3. Indemnification
	 	 	6	 
	Section 5.4. Reserve Initial Deposit
	 	 	7	 
	Section 5.5. Obligations of the Depositor
	 	 	7	 
	 
	ARTICLE VI MISCELLANEOUS PROVISIONS
	 	 	7	 
	Section 6.1. Amendment.
	 	 	7	 
	Section 6.2. Notices
	 	 	8	 
	Section 6.3. Costs and Expenses
	 	 	8	 
	Section 6.4. Successors and Assigns
	 	 	9	 
	Section 6.5. No Petition
	 	 	9	 
	Section 6.6. Limited Recourse
	 	 	9	 
	Section 6.7. Subordination.
	 	 	9	 
	Section 6.8. GOVERNING LAW
	 	 	10	 
	Section 6.9. Submission to Jurisdiction
	 	 	10	 
	Section 6.10. WAIVER OF JURY TRIAL
	 	 	10	 
	Section 6.11. Severability
	 	 	10	 
	Section 6.12. Counterparts
	 	 	10	 
	Section 6.13. Headings
	 	 	10	 
	Section 6.14. No Waiver; Cumulative Remedies
	 	 	10	 
	Section 6.15. Issuer Obligation
	 	 	10	 

i

 

     SECOND-TIER SALE AGREEMENT, dated and effective as of _______, 20__ (this
“Agreement”), between FORD CREDIT AUTO LEASE TWO LLC, a Delaware limited liability company,
acting with respect to its Series of limited liability company interests designated as the “20_-_
Series”, as Depositor, and FORD CREDIT AUTO LEASE TRUST 20_-_, a Delaware statutory trust, as
Issuer.

BACKGROUND

     On or prior to the date of this Agreement, CAB East LLC, a Delaware limited liability company
(“CAB East”) and CAB West LLC, a Delaware limited liability company (“CAB West”
and, together with CAB East, the “Titling Companies”) issued to Ford Credit a note
designated as the “20_-_ Exchange Note” having an initial aggregate outstanding principal balance
of $[______] a fixed interest rate of [__] % and a stated maturity date of [______].

     Ford Credit and the Titling Companies have also designated the 20_-_ Reference Pool in
respect of the 20_-_ Exchange Note and the Collateral Leases and Collateral Leased Vehicles
comprising the 20_-_ Reference Pool.

     Ford Credit has sold the 20_-_ Exchange Note to the Depositor pursuant to a First-Tier Sale
Agreement, dated as of the date of this Agreement (the “First-Tier Sale Agreement”).

     The Depositor wishes to sell the 20_-_ Exchange Note and certain related property and rights
to the Issuer on the terms and conditions of this Agreement.

ARTICLE I

USAGE AND DEFINITIONS

     Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined
in this Agreement are defined in Appendix 1 to the Exchange Note Supplement (the “Exchange Note
Supplement”) to the Credit and Security Agreement (as defined below), dated as of _______,
20__, among the Titling Companies, as Borrowers, U.S. Bank National Association (“U.S.
Bank”), as Administrative Agent, HTD Leasing LLC (“HTD”), as Collateral Agent, and Ford
Motor Credit Company LLC (“Ford Credit”), as Lender and Servicer. Capitalized terms used
but not otherwise defined in this Agreement or in Appendix 1 to the Exchange Note Supplement are
defined in Appendix A to the Amended and Restated Credit and Security Agreement (the “Credit
and Security Agreement”), dated as of December 1, 2006, among the Titling Companies and FCALM,
LLC, as Borrowers, U.S. Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as
Lender and Servicer. Appendix 1 and Appendix A also contain rules as to usage applicable to this
Agreement and are incorporated by reference into this Agreement.

ARTICLE II

SALE OF THE SECOND-TIER ASSETS

     Section 2.1. Sale of the Second-Tier Assets.

     (a) Effective as of the 20_-_ Closing Date and immediately after the transaction pursuant to
the First-Tier Sale Agreement, and immediately before the transactions contemplated

 

by the Trust
Agreement and the Indenture, the Depositor sells and assigns to the Issuer, without recourse, the
Second-Tier Assets.

     (b) In consideration for the Second-Tier Assets, the Issuer will pay to the Depositor, without
recourse, all right, title and interest of the Issuer, whether now owned or hereafter acquired, in,
to and under the Notes and the rights to distributions under Section 8.2 of the Indenture, as
payment for the 20_-_ Exchange Note. The Second-Tier Assets will become the property and rights
of the Issuer.

     (c) The sale, transfer, assignment and conveyance of the Second-Tier Assets pursuant to this
Agreement is without recourse, and the Depositor does not guarantee collection of the Second-Tier
Assets or any underlying asset included in the 20_-_ Reference Pool.

     Section 2.2. Closing; Further Assignments.

     (a) The sale and assignment of the Second-Tier Assets will take place on the 20_-_ Closing
Date concurrently with the closings under the First-Tier Sale Agreement, the Indenture and the
Initial Purchase Agreement.

     (b) The Depositor acknowledges that the Issuer will, pursuant to the Indenture, assign and
pledge the Second-Tier Assets and certain other property and rights to the Indenture Trustee for
the benefit of the 20_-_ Secured Parties. The Depositor consents to such assignment and pledge.

     (c) The Issuer acknowledges the appointment of Ford Credit as Servicer with respect to the
Collateral Specified Interests pursuant to the Servicing Agreement and as Servicer with respect to
the 20_-_ Reference Pool pursuant to the Servicing Supplement.

     Section 2.3. Intent; Savings Clause. It is the intention of the Depositor and the
Issuer that (i) the sale pursuant to Section 2.1 constitutes an absolute sale of the Second-Tier
Assets, including all monies paid thereon and all monies due thereon on or after the Cutoff Date,
conveying good title to the Second-Tier Assets free and clear of any Lien other than Permitted
Liens, from the Depositor to the Issuer and (ii) the Second-Tier Assets not be a part of the
Depositor’s estate in the event of a bankruptcy or insolvency of the Depositor. If,
notwithstanding the intention of the Depositor and the Issuer, such sale is deemed to be a pledge
in connection with a financing or is otherwise deemed not to be a sale, the Depositor grants, and
the parties intend that the Depositor grants, to the Issuer a security interest in the Second-Tier
Assets and the performance by the Depositor of the obligation by the Depositor to pay to the Issuer
all amounts received with respect to the 20_-_ Exchange Note,
and in such event, this Agreement will constitute a security agreement under applicable law
and the Issuer will have all of the rights and remedies of a secured party and creditor under the
UCC.

ARTICLE III

REPRESENTATIONS AND WARRANTIES

     Section 3.1. Representations and Warranties of the Issuer. The Issuer represents and
warrants to the Depositor as of the date of this Agreement and as of the 20_-_ Closing Date:

2

 

     (a) Organization and Qualification. The Issuer is a statutory trust duly formed,
validly existing and in good standing under the laws of the State of Delaware. The Issuer is
qualified as a foreign statutory trust in good standing and has obtained all necessary licenses and
approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of
its activities requires such qualification, license or approval, unless the failure to obtain such
qualifications, licenses or approvals would not reasonably be expected to have a material adverse
effect on the Issuer’s ability to perform its obligations under this Agreement.

     (b) Power, Authorization and Enforceability. The Issuer has the power and authority
to execute, deliver and perform the terms of this Agreement. The Issuer has authorized the
execution, delivery and performance of the terms of this Agreement. This Agreement is the legal,
valid and binding obligation of the Issuer, enforceable against the Issuer, except as the same may
be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of
creditors’ rights or by general equitable principles.

     (c) No Conflicts and No Violation. The consummation of the transactions contemplated
by this Agreement will not (i) conflict with or result in any breach of any of the terms and
provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan
agreement, guarantee or similar agreement or instrument under which the Issuer is a debtor or
guarantor, (ii) result in the creation or imposition of any Lien upon any of the properties or
assets of the Issuer pursuant to the terms of any such indenture, mortgage, deed of trust, loan
agreement, guarantee or similar agreement or instrument (other than as contemplated by this
Agreement), (iii) violate the trust agreement of the Issuer, or (iv) violate any law or, to the
Issuer’s knowledge, any order rule or regulation applicable to the Issuer of any Governmental
Authority having jurisdiction over the Issuer or its properties, the failure to comply with which
would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform
its obligations under this Agreement or any other 20_-_ Basic Document to which it is a party.

     (d) No Proceedings. To the Issuer’s knowledge, there are no proceedings or
investigations pending or overtly threatened in writing before any Governmental Authority having
jurisdiction over the Depositor or its properties (i) asserting the invalidity this Agreement, (ii)
seeking to prevent the consummation of any of the transactions contemplated by this Agreement,
(iii) seeking any determination or ruling that would reasonably be expected to have a material
adverse effect upon the Issuer’s ability to perform its obligations under this Agreement or the
validity or enforceability of this Agreement, or (iv) that would reasonably be expected to (A)
affect the treatment of the Notes as indebtedness for U.S. federal income tax purposes, (B) be
deemed to
cause a taxable exchange of the Notes for U.S. federal income tax purposes, or (C) cause the
Issuer to be treated as an association or publicly traded partnership taxable as a corporation for
U.S. federal income tax purposes, in each case, other than such proceedings that, to the Issuer’s
knowledge, would not reasonably be expected to have a material adverse effect upon the Issuer or
materially and adversely affect the performance by the Issuer of its obligations under, or the
validity and enforceability of, the 20_-_ Basic Documents or the Notes, or materially and
adversely affect the tax treatment of the Issuer or the Notes.

     Section 3.2. Representations and Warranties of the Depositor. The Depositor
represents and warrants to the Issuer as of the date of this Agreement and as of the 20_-_ Closing
Date:

3

 

     (a) Organization and Qualification. The Depositor is duly organized and validly
existing as a limited liability company in good standing under the laws of the State of Delaware.
The Depositor is qualified as a foreign limited liability company in good standing and has obtained
all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its
properties or the conduct of its activities requires such qualification, license or approval,
unless the failure to obtain such qualifications, licenses or approvals would not reasonably be
expected to have a material adverse effect on the Depositor’s ability to perform its obligations
under this Agreement.

     (b) Power, Authorization and Enforceability. The Depositor has the power and
authority to execute, deliver and perform the terms of this Agreement. The Depositor has duly
authorized the execution, delivery and performance of the terms of this Agreement. This Agreement
is the legal, valid, binding and enforceable obligation of the Depositor, except as the same may be
limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of
creditors’ rights or by general equitable principles.

     (c) No Conflicts and No Violation. The consummation of the transactions contemplated
by this Agreement, and the fulfillment of the terms of this Agreement, will not (i) conflict with
or result in any breach of the terms or provisions of, or constitute a default under, any
indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument
under which the Depositor is a debtor or guarantor, (ii) result in the creation or imposition of
any Lien upon any of the properties or assets of the Depositor pursuant to the terms of any such
indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument
(other than as contemplated by this Agreement), (iii) violate the certificate of formation of the
Depositor or the Depositor LLC Agreement or (iv) violate any law or, to the Depositor’s knowledge,
any order, rule or regulation applicable to the Depositor of any Governmental Authority having
jurisdiction over the Depositor or its properties, the failure to comply with which would
reasonably be expected to have a material adverse effect upon the Depositor’s ability to perform
its obligations under this Agreement.

     (d) No Proceedings. To the Depositor’s knowledge, there are no proceedings or
investigations pending or overtly threatened in writing before any Governmental Authority having
jurisdiction over the Depositor or its properties (i) asserting the invalidity of this Agreement,
(ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement,
(iii) seeking any determination or ruling that would reasonably be expected to have a material
adverse effect upon the Depositor’s ability to perform its obligations under this Agreement, or
(iv) that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for
U.S. federal income tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S.
federal income tax purposes, or (C) cause the Issuer to be treated as an association or publicly
traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case,
other than such proceedings that, to the Depositor’s knowledge, would not reasonably be expected to
have a material adverse effect upon the Depositor or materially and adversely affect the
performance by the Depositor of its obligations under, or the validity and enforceability of, the
20_-_ Basic Documents or the Notes, or materially and adversely affect the tax treatment of the
Issuer or the Notes.

4

 

     (e) Investment Company Act. The Depositor is not an “investment company” or a company
“controlled by an investment company” within the meaning of the Investment Company Act.

     Section 3.3. Representations of the Depositor and the Issuer. The respective
agreements, representations, warranties and other statements by the Depositor and the Issuer set
forth in or made pursuant to this Agreement will remain in full force and effect and will survive
the closing under Section 2.2.

ARTICLE IV

CONDITIONS

     Section 4.1. Conditions to Obligation of the Issuer. The obligation of the Issuer to
purchase the Second-Tier Assets as set forth in Section 2.1 is subject to the satisfaction of the
following conditions:

     (a) Representations and Warranties True. The representations and warranties of the
Depositor contained in Section 3.2 will be true and correct on the 20_-_ Closing Date, and the
Depositor will have performed on or prior to the 20_-_ Closing Date all obligations to be
performed by the Depositor under this Agreement on or prior to the 20_-_ Closing Date.

     (b) Delivery of 20_-_ Exchange Note. The Depositor has delivered to the Issuer the
20_-_ Exchange Note, registered in the name of “Ford Credit Auto Lease Trust 20_-_ “ or its
assignee or endorsed in blank by an effective endorsement.

     (c) Documents to be Delivered by the Depositor. On the 20_-_ Closing Date, the
Depositor will deliver such other documents as the Issuer may reasonably request.

     (d) Other Transactions. The transactions contemplated by the Credit and Security
Agreement, the Exchange Note Supplement, the First-Tier Sale Agreement, the Indenture and the
Initial Purchase Agreement will be consummated on or prior to the 20_-_ Closing Date.

     Section 4.2. Conditions to Obligation of the Depositor. The obligation of the Depositor to sell the 20_-_ Exchange Note to the Issuer as set forth
in Section 2.1 is subject to each representation and warranty of the Issuer as set forth in Section
3.1 being true and correct on the 20_-_ Closing Date, and each obligation to be performed by the
Issuer under this Agreement on or prior to the 20_-_ Closing Date having been performed on or
prior to the 20_-_ Closing Date.

     Section 4.3. Deemed Satisfaction of Conditions. Upon the transfer (or the purported
transfer) of the Second-Tier Assets to, and the acceptance (or the purported acceptance) of the
Second-Tier Assets by, the Issuer, all of the conditions set forth in this Article IV will be
deemed to have been satisfied.

5

 

ARTICLE V

COVENANTS OF THE DEPOSITOR

     Section 5.1. Protection of Right, Title and Interest to the Second-Tier Assets.

     (a) The Depositor will file financing statements and continuation statements in the manner and
place required by Applicable Law to preserve, maintain and protect the interest of the Issuer in
the Second-Tier Assets. The Depositor will deliver to the Issuer file-stamped copies of, or filing
receipts for, any financing statement and continuation statement promptly upon such document
becoming available following filing.

     (b) The Depositor authorizes the Issuer to file any financing or continuation statements, and
amendments to such statements, in all jurisdictions and with all filing offices as the Issuer may
determine are necessary or advisable to preserve, maintain and protect the interest of the Issuer
in the Second-Tier Assets. Such financing and continuation statements may describe the Second-Tier
Assets in any manner as the Issuer may reasonably determine to ensure the perfection of the
interest of the Issuer in the Second-Tier Assets. The Issuer will deliver to the Depositor
file-stamped copies of, or filing receipts for, any financing statement and continuation statement
promptly upon such document becoming available following filing.

     (c) The Depositor will give the Issuer at least 60 days’ prior notice of any relocation of its
chief executive office or change in its corporate structure, form of organization or jurisdiction
of organization if, as a result of such relocation or change, Section 9-307 of the UCC could
require the filing of a new financing statement or an amendment to a previously filed financing or
continuation statement and will promptly file any such new financing statement or amendment. The
Depositor will maintain its chief executive office within the United States and will maintain its
jurisdiction of organization in only one State.

     (d) The Depositor will not change its name in any manner that could make any financing
statement or continuation statement filed in accordance with this Section 5.1 seriously misleading
within the meaning of Section 9-506 of the UCC, unless it has given the Depositor at least five
days’ prior notice of such change and promptly files appropriate amendments to all previously filed
financing statements.

     Section 5.2. Other Liens or Interests. Except for the sales and assignments under this Agreement, the Depositor will not sell,
contribute, pledge, assign, transfer or allow to be issued any Second-Tier Asset to any other
Person, or grant, create, incur, assume or suffer to exist any Lien on any interest therein, and
the Depositor will defend the right, title, and interest of the Issuer in, to and under the
Second-Tier Assets against all claims of third parties claiming through or under the Depositor.
However, the Depositor’s obligations under this Section 5.2 with respect to the 20_-_ Exchange
Note will terminate upon the payment in full of the 20_-_ Exchange Note pursuant to the Credit and
Security Agreement and the Exchange Note Supplement.

     Section 5.3. Indemnification. The Depositor will be liable under this Agreement only
to the extent of the obligations specifically undertaken by the Depositor under this Agreement, and
agrees to the following:

6

 

     (a) The Depositor will indemnify, defend and hold harmless the Issuer, and its officers,
directors, employees and agents, from and against any and all costs, expenses, losses, damages,
claims and liabilities arising out of, or imposed upon the Issuer through the willful misconduct,
negligence or bad faith of the Depositor in the performance of its duties under this Agreement or
by reason of reckless disregard of the Depositor’s obligations and duties under this Agreement.

     (b) Promptly upon receipt by the Issuer, or any of its officers, directors, employees and
agents, of notice of the commencement of any suit, action, claim, proceeding or governmental
investigation against it, the Issuer will, if a claim in respect of such suit, action, claim,
proceeding or investigation is to be made against the Depositor under this Section 5.3, notify the
Depositor of the commencement of such suit, action, claim, proceeding or investigation. The
Depositor may participate in and assume the defense and settlement of any such suit, action, claim,
proceeding or investigation at its expense, and no settlement of such suit, action, claim,
proceeding or investigation may be made without the approval of the Depositor and the Issuer, which
approvals will not be unreasonably withheld or delayed. The Depositor’s obligations under this
Section 5.3 will include reasonable fees and expenses of counsel and expenses of litigation. After
notice from the Depositor to the Issuer of the Depositor’s intention to assume the defense of such
suit, action, claim, proceeding or investigation with counsel reasonably satisfactory to the
Issuer, and so long as the Depositor so assumes the defense of such suit, action, claim, proceeding
or investigation in a manner reasonably satisfactory to the Issuer, the Depositor will not be
liable for any expenses of counsel to the Issuer unless there is a conflict between the interests
of the Depositor and the Issuer, in which case the Depositor will pay for the separate counsel to
the Issuer.

     (c) If the Depositor makes any indemnity payments pursuant to this Section 5.3 and the Issuer
thereafter collects any of such amounts from others, the Issuer will promptly repay such amounts to
the Depositor, without interest.

     (d) The indemnity obligations set forth in Section 5.3(a) will be in addition to any
obligation that the Depositor may otherwise have and will survive the termination of this
Agreement.

     Section 5.4. Reserve Initial Deposit. On the 20_-_ Closing Date, the Depositor will deposit, or cause to be deposited, the
Reserve Initial Deposit into the Reserve Account from the net proceeds of the sale of the Notes.

     Section 5.5. Obligations of the Depositor. The obligations of the Depositor under
this Agreement will not be affected by reason of any invalidity, illegality or irregularity of the
20_-_ Exchange Note or any Collateral Lease or Collateral Leased Vehicle included in the 20_-_
Reference Pool.

ARTICLE VI

MISCELLANEOUS PROVISIONS

     Section 6.1. Amendment.

     (a) This Agreement may be amended by the Depositor and the Issuer, with prior notice by the
Depositor to the Rating Agencies, for any purpose if either (i) the Depositor or the Issuer
delivers an Opinion of Counsel to the Issuer, the Owner Trustee and the Indenture Trustee, in form

7

 

reasonably satisfactory to them, to the effect that such amendment will not adversely affect the
interests of the Noteholders in any material respect or (ii) the consent of the Noteholders of a
majority of the Note Balance of each Class of Notes Outstanding adversely affected in any material
respect is obtained (with each affected Class voting separately, except that all Noteholders of
Class A Notes will vote together as a single class).

     (b) If the consent of the Noteholders is required, they do not need to approve the particular
form of any proposed amendment so long as their consent approves the substance of the proposed
amendment.

     (c) Promptly upon the execution of any amendment in accordance with this Section 6.1, the
Sponsor will send a copy of such amendment to the Indenture Trustee and each Rating Agency.

     Section 6.2. Notices.

     (a) All notices, requests, demands, consents, waivers or other communications to or from the
parties to this Agreement must be in writing and will be deemed to have been given:

     (i) upon delivery or, in the case of a letter mailed by registered first class mail,
postage prepaid, three days after deposit in the mail,

     (ii) in the case of a fax, when receipt is confirmed by telephone, reply email or reply
fax from the recipient,

     (iii) in the case of an email, when receipt is confirmed by telephone or reply email
from the recipient, and

     (iv) in the case of an electronic posting to a password-protected website to which the
recipient has been provided access, upon delivery of an email to such recipient stating that
such electronic posting has occurred.

     Any such notice, request, demand, consent or other communication must be delivered or
addressed as set forth on Schedule A to the Indenture or at such other address as any party may
designate by notice to the other parties.

     (b) Any notice required or permitted to be mailed to a Noteholder must be sent by overnight
delivery, mailed by registered first class mail, postage prepaid, or sent by fax, to the address of
such Person as shown in the Note Register. Any notice so mailed within the time prescribed in this
Agreement will be conclusively presumed to have been properly given, whether or not the Noteholder
receives such notice.

     Section 6.3. Costs and Expenses. The Depositor will pay all expenses incurred in the
performance of its obligations under this Agreement and all reasonable out-of-pocket costs and
expenses of the Issuer in connection with the perfection as against third parties of the Issuer’s
right, title and interest in and to the Second-Tier Assets and the enforcement of any obligation of
the Depositor hereunder.

8

 

     Section 6.4. Successors and Assigns. All covenants and agreements contained herein
will be binding upon, and inure to the benefit of, the parties hereto and their respective
successors and permitted assigns, all as provided in this Agreement. Any request, notice,
direction, consent, waiver or other instrument or action by a party to this Agreement will bind the
successors and assigns of such party. Except as otherwise provided in this Agreement, no other
Person will have any right or obligation under this Agreement.

     Section 6.5. No Petition. Each party to this Agreement covenants that for a period of
one year and one day (or, if longer, any applicable preference period) after payment in full of the
Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all holders of
any other Securities (as defined in the related Titling Company Agreement) the payments on which
are derived in any material part from amounts received with respect to any Titling Company Assets
(as defined in the applicable Titling Company Agreements), it will not institute against, or join
any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling
Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any
United States federal or state bankruptcy or similar law in connection with any obligations
relating to the 20_-_ Exchange Note, the Notes, this Agreement or any of the other 20_-_ Basic
Documents and agrees it will not cooperate with or encourage others to file a bankruptcy petition
against the Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the
Collateral Specified Interest Certificates during the same period.

     Section 6.6. Limited Recourse. The Depositor and the Issuer agree that any claim that the Depositor or the Issuer may seek
to enforce against each other is limited to the Second-Tier Assets only and does not represent a
claim against the assets of the Depositor or the Issuer as a whole or any assets other than the
Second-Tier Assets.

     Section 6.7. Subordination.

     (a) The Depositor and the Issuer agree that any claim that the Depositor or the Issuer may
seek to enforce at any time against any assets of the Depositor or the Issuer other than the
Second-Tier Assets will be subordinate to the payment in full of all other claims with respect to
such other assets. However, this Section 6.7(a) will not limit, subordinate or otherwise modify
any claims against the Depositor or the Issuer with respect to any right to indemnification,
commitment to repurchase or other obligation of the Depositor or the Issuer relating to:

     (i) any of the assets related to the Second-Tier Assets,

     (ii) any related credit enhancement,

     (iii) any transactions entered into in connection with the 20_-_ Exchange Note (or the
beneficial interest therein),

     (iv) any administrative services performed in connection with the Second -Tier Assets,

     (v) any related servicing obligation, or

9

 

     (vi) any obligation to any Person acting as trustee, registrar or administrator
(including as Titling Company Registrar, owner trustee or indenture trustee).

     (b) The Depositor agrees that any claim that the Depositor may seek to enforce against the
Issuer or any of its assets will be subordinate to the payment in full of the principal of and
interest on the Notes.

     (c) The parties to this Agreement intend that Section 6.7(a) and Section 6.7(b) constitute an
enforceable subordination agreement under Section 510(a) of the Bankruptcy Code.

     Section 6.8. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

     Section 6.9. Submission to Jurisdiction. The parties submit 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 Agreement. The parties irrevocably waive, to the fullest extent they may
do so, any objection that they 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 6.10. WAIVER OF JURY TRIAL. Each party to this agreement 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 agreement or the transactions contemplated by this
agreement.

     Section 6.11. Severability. If any of the covenants, agreements or terms of this
Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the
remaining covenants, agreements or terms of this Agreement and will in no way affect the validity,
legality or enforceability of the remaining Agreement.

     Section 6.12. Counterparts. This Agreement may be executed in any number of
counterparts. Each counterpart will be an original, and all counterparts will together constitute
one and the same instrument.

     Section 6.13. Headings. The headings in this Agreement are included for convenience
only and will not affect the meaning or interpretation of this Agreement.

     Section 6.14. No Waiver; Cumulative Remedies. No failure or delay of the Depositor in
exercising any power, right or remedy under this Agreement will operate as a waiver. No single or
partial exercise of any power, right or remedy precludes any other or further exercise of such
power, right or remedy or the exercise of any other power, right or remedy. The powers, rights and
remedies provided in this Agreement are in addition to any powers, rights and remedies provided by
law.

     Section 6.15. Issuer Obligation. No recourse may be taken, directly or indirectly,
with respect to the obligations of the Issuer or the Owner Trustee under this Agreement or any
certificate or other writing delivered in connection with this Agreement, against (i) the Owner

10

 

Trustee in its individual capacity, (ii) any holder of a beneficial interest in the Issuer, (iii)
any partner, owner, beneficiary, agent, officer, director, employee or agent of the Owner Trustee,
in its individual capacity or (iv) any holder of a beneficial interest in the Owner Trustee or, in
its individual capacity, except as any such Person may have expressly agreed (it being understood
that the Owner Trustee has no such obligations in its individual capacity). For all purposes of
this Agreement, in the performance of any duties or obligations of the Issuer under this Agreement,
the Owner Trustee will be subject to, and entitled to the benefits of, Articles V, VI and VII of
the Trust Agreement.

[Remainder of Page Intentionally Left Blank]

11

 

	 	 	 	 	 	 	 

	EXECUTED BY:
	 	 	 	 	 	 
	 	 	FORD CREDIT AUTO LEASE TWO LLC,
	 	 
	 

	 	 	 	acting with respect to its Series of

limited liability company interests designated as the

“20_-__ Series”, as Depositor	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name: Susan J. Thomas
	 	 
	 

	 	 	 	Title: Secretary	 	 
	 
	 	 	 	 	 	 
	 	 	FORD CREDIT AUTO LEASE TRUST 20_-__ ,	 	 
	 

	 	 	 	as Issuer	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	U.S. Bank Trust National Association, not in
its individual capacity but solely as Owner Trustee	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

Name:
	 	 
	 

	 	 	 	Title:	 	 

[Signature Page to Second-Tier Sale Agreement]exv10w4

Exhibit 10.4

EXECUTION VERSION

AMENDED AND RESTATED

SERVICING AGREEMENT

dated as of

December 1, 2006

among

FORD MOTOR CREDIT COMPANY,

as Servicer with respect to the Collateral Specified Interests and as Lender

CAB EAST HOLDINGS, LLC,

CAB WEST HOLDINGS, LLC, and

FCALM HOLDINGS, LLC,

as Holders of the Collateral Specified Interest Certificates

and

HTD LEASING LLC,

as Collateral Agent

 

 

Exhibit 10.4

EXECUTION VERSION

TABLE OF CONTENTS

	 	 	 	 	 
	 	 	Page
	ARTICLE I

	 
	 	 	 	 
	USAGE AND DEFINITIONS

	 
	 	 	 	 
	ARTICLE II

	 
	 	 	 	 
	DESIGNATION

	 
	 	 	 	 
	Section 2.1 Designation
	 	 	2	 
	Section 2.2 Direction to the Servicer
	 	 	2	 
	Section 2.3 Servicing Supplement
	 	 	3	 
	 
	 	 	 	 
	ARTICLE III

	 
	 	 	 	 
	THE SERVICER

	 
	 	 	 	 
	Section 3.1 Appointment of Servicer
	 	 	4	 
	Section 3.2 Representations of the Servicer
	 	 	4	 
	Section 3.3 Liability of the Servicer; Indemnities
	 	 	5	 
	Section 3.4 Merger or Consolidation of, or Assumption of the Obligations of, Servicer
	 	 	7	 
	Section 3.5 Delegation of Duties
	 	 	8	 
	Section 3.6 Ford Credit Not to Resign as Servicer
	 	 	8	 
	Section 3.7 Insurance
	 	 	8	 
	Section 3.8 Execution of Documents; Licenses and Applications
	 	 	9	 
	Section 3.9 Fees and Expenses
	 	 	9	 
	Section 3.10 Termination
	 	 	10	 
	 
	 	 	 	 
	ARTICLE IV

	 
	 	 	 	 
	PURCHASE OF LEASES AND LEASED VEHICLES

	 
	 	 	 	 
	Section 4.1 Origination by Dealers; Role of Servicer
	 	 	10	 
	Section 4.2 Administration and Titling of Leased Vehicles
	 	 	11	 
	Section 4.3 Purchase of Leases and Leased Vehicles
	 	 	11	 
	Section 4.4 Listing of Vehicle Identification Numbers
	 	 	12	 

i

 

	 	 	 	 	 
	 	 	Page
	ARTICLE V

	 
	 	 	 	 
	COLLECTIONS AND APPLICATION OF FUNDS

	 
	 	 	 	 
	Section 5.1 Remittance
	 	 	12	 
	Section 5.2 Establishment of Certain Accounts
	 	 	12	 
	Section 5.3 Investment of Amounts in the Bank Accounts
	 	 	14	 
	 
	 	 	 	 
	ARTICLE VI

	 
	 	 	 	 
	ADMINISTRATION AND SERVICING OF LEASES

	 
	 	 	 	 
	Section 6.1 Duties of Servicer
	 	 	15	 
	Section 6.2 Collection of Payments
	 	 	16	 
	Section 6.3 Allocation of Collections
	 	 	16	 
	Section 6.4 Other Authorized Actions with Respect to the Servicing of the Collateral Leases
	 	 	17	 
	Section 6.5 Custody of Collateral Lease Files; Custodial Duties
	 	 	17	 
	Section 6.6 Maintenance of Record Interests in Collateral Leased Vehicles
	 	 	19	 
	Section 6.7 No Impairment
	 	 	20	 
	 
	 	 	 	 
	ARTICLE VII

	 
	 	 	 	 
	SALE OF COLLATERAL LEASED VEHICLES

	 
	 	 	 	 
	Section 7.1 Termination of Collateral Leases; Return of Collateral Leased Vehicles
	 	 	20	 
	Section 7.2 Sale of Collateral Leased Vehicles
	 	 	20	 
	Section 7.3 Security Deposits
	 	 	21	 
	 
	 	 	 	 
	ARTICLE VIII

	 
	 	 	 	 
	SERVICER DEFAULT

	 
	 	 	 	 
	Section 8.1 Facility Servicer Event of Default
	 	 	21	 
	Section 8.2 Revolving Facility Servicer Events of Default
	 	 	22	 
	Section 8.3 Exchange Note Servicer Events of Default
	 	 	23	 
	Section 8.4 Appointment of Successor Servicer
	 	 	25	 
	Section 8.5 Waiver of Servicer Event of Default
	 	 	27	 
	Section 8.6 Non-Solicitation of Dealers and Lessees
	 	 	28	 

ii

 

	 	 	 	 	 
	 	 	Page
	ARTICLE IX

	 
	 	 	 	 
	REPORTING

	 
	 	 	 	 
	Section 9.1 Monthly Revolving Facility Pool Reports
	 	 	28	 
	Section 9.2 Monthly Reference Pool Reports
	 	 	28	 
	Section 9.3 Annual Statement as to Compliance
	 	 	29	 
	Section 9.4 Annual Statement Regarding Maintenance of Insurance Policies
	 	 	29	 
	Section 9.5 Annual Independent Certified Public Accountants’ Report
	 	 	29	 
	Section 9.6 Other Notices
	 	 	30	 
	 
	 	 	 	 
	ARTICLE X

	 
	 	 	 	 
	MISCELLANEOUS

	 
	 	 	 	 
	Section 10.1 Amendments
	 	 	31	 
	Section 10.2 No Legal Title to Collateral Assets
	 	 	32	 
	Section 10.3 Notices
	 	 	32	 
	Section 10.4 Third-Party Beneficiaries
	 	 	32	 
	Section 10.5 Tax Treatment
	 	 	33	 
	Section 10.6 No Recourse
	 	 	33	 
	Section 10.7 No Petition
	 	 	33	 
	Section 10.8 GOVERNING LAW; SUBMISSION TO JURISDICTION
	 	 	33	 
	Section 10.9 WAIVER OF JURY TRIAL
	 	 	34	 
	Section 10.10 Severability
	 	 	34	 
	Section 10.11 Counterparts
	 	 	34	 
	Section 10.12 Headings
	 	 	34	 
	Section 10.13 Further Assurances
	 	 	34	 
	Section 10.14 Agent for Service
	 	 	34	 

	 	 	 	 	 	 	 

	Exhibit A
	 	Form of Collateral Specified Interest Certificate	 	 	A-1	 
	Exhibit B
	 	Form of Collateral Titling Company Specification Notice	 	 	B-1	 
	Exhibit C
	 	Locations of Collateral Lease Files	 	 	C-1	 
	Exhibit D
	 	Form of Monthly Revolving Facility Pool Report	 	 	D-1	 
	Exhibit E
	 	Form of Monthly Reference Pool Report	 	 	E-1	 
	 
	 	 	 	 	 	 
	Appendix A
	 	Usage and Definitions	 	 	 	 
	 
	 	 	 	 	 	 
	Schedule I
	 	Addresses for Notices	 	 	 	 

iii

 

          AMENDED AND RESTATED SERVICING AGREEMENT, dated as of December 1, 2006 (this
“Agreement”), among (i) FORD MOTOR CREDIT COMPANY, a Delaware corporation (“Ford
Credit”), as servicer with respect to the Collateral Specified Interests (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 East
Holdings”), CAB WEST HOLDINGS, LLC, a Delaware limited liability company (“CAB West
Holdings”), and FCALM HOLDINGS, LLC, a Delaware limited liability company (“FCALM
Holdings” and, together with CAB East Holdings and CAB West Holdings, the “Holding
Companies” and each a “Holding Company”), as Holders of the Collateral Specified
Interest Certificates and (iii) HTD LEASING LLC (“HTD Leasing”), as collateral agent (the
“Collateral Agent”).

BACKGROUND

          1. Each Holding Company, as Holder of the Certificate representing the Initial Specified
Interest of the related Titling Company, has delivered to each Titling Company Administrator,
pursuant to the related Titling Company Agreement, a Collateral Titling Company Specification
Notice in substantially the form attached as Exhibit B to this Agreement.

          2. Each Collateral Titling Company Specification Notice directed the related Titling Company
Administrator to establish a Specified Interest of the related Titling Company, each designated as
a “Collateral Specified Interest,” and to cause each Titling Company to issue to the related
Holding Company a Collateral Specified Interest Certificate in substantially the form attached as
Exhibit A to this Agreement.

          3. Each Collateral Specified Interest Certificate represents the entire Titling Company
Interest in the Collateral Assets acquired by such Titling Company from time to time.

          4. Pursuant to the Titling Company Agreements, the Holders of the Collateral Specified
Interest Certificates may enter into a Servicing Agreement providing for the administration and
servicing of the Collateral Assets.

          5. The Holding Companies, as Holders of the Collateral Specified Interest Certificates, have
entered into a Servicing Agreement, dated as of July 22, 2005, among Ford Credit, as Servicer and
Lender, and the Holding Companies (the “Original Servicing Agreement”) to appoint Ford
Credit as Servicer with respect to the Collateral Specified Interests, pursuant to which Ford
Credit, in such capacity, will service the Collateral Assets, and will sell or otherwise dispose of
the related Collateral Leased Vehicles.

1

 

          6. The Holding Companies, as Holders of the Collateral Specified Interest Certificates, are
entering into this Agreement to amend and restate the Original Servicing Agreement to, among other
things, appoint HTD Leasing as Collateral Agent hereunder, pursuant to which HTD Leasing will
appoint the Servicer as its agent to hold the Certificates of Title.

          7. The Collateral Assets have been pledged to the Collateral Agent for the benefit of the
Lender and all Exchange Noteholders under the Credit and Security Agreement.

          The parties agree as follows:

ARTICLE I

USAGE AND DEFINITIONS

          Capitalized terms used but not otherwise defined in this Agreement or in Appendix 1 to
the applicable Servicing Supplement are defined in Appendix A to this Agreement or, if not
defined in such Appendix A, are defined in the related Titling Company Agreement.
Appendix A also contains rules as to usage applicable to this Agreement.

ARTICLE II

DESIGNATION

          Section 2.1 Designation. Pursuant to each Collateral Titling Company Specification Notice,
(i) each Collateral Specified Interest is a Revolving Specified Interest, (ii) the related
Collateral Specified Interest Certificate was issued as a single Class and (iii) the Series Issue
Date and the Series Cutoff Date, each as defined in the Titling Company Agreement, with respect to
each Collateral Specified Interest was July 22, 2005.

          Section 2.2 Direction to the Servicer. Pursuant to each Titling Company Agreement, the
related Holding Company, as Holder of the related Collateral Specified Interest Certificate,
directs the Servicer to deliver on its behalf any Reallocation Notices or Assignment Notices
required to be delivered to the applicable Titling Company Administrator pursuant to the related
Titling Company Agreement in connection with the sale of any Collateral Leases or Collateral Leased
Vehicles or the Titling Company Interests therein. So long as Ford Credit remains both the
Servicer and the Titling Company Administrator with respect to any Titling Company, Ford Credit
will be deemed to have delivered a Reallocation Notice or an Assignment Notice, as the case may be,
when it indicates, in its capacity as Titling

2

 

Company Administrator, the reallocation or assignment of the applicable Collateral Lease and
Collateral Leased Vehicle on the books and records maintained with respect to such Titling Company.

          Section 2.3 Servicing Supplement. Upon the issuance of an Exchange Note pursuant to
Section 4.01(a) of the Credit and Security Agreement, the Servicer, the Lender, the
Collateral Agent and each Holding Company may enter into a supplement to this Agreement (each, a
“Servicing Supplement”) that sets forth any specific rights and duties of the Servicer and
other agreements and undertakings with respect to the administration and servicing of the related
Reference Pool, including:

          (i) the representations and warranties to be made by the Servicer with
respect to the Collateral Leases and the Collateral Leased Vehicles included in
the related Reference Pool;

          (ii) the indemnification by the Servicer of the related Exchange Noteholder,
any owner trustee or administrator of the related Exchange Noteholder, any
indenture trustee, note purchaser or underwriter with respect to debt obligations
issued by an Exchange Noteholder and secured by an Exchange Note, the respective
officers, directors, employees and agents of such Persons, and any other Person
that the Servicer agrees to indemnify, in each case with respect to the servicing
of the related Reference Pool;

          (iii) the rate and any other terms of the related Reference Pool Servicing
Fee;

          (iv) the manner in which the Servicer will service and administer the assets
included in the related Reference Pool;

          (v) the purchase of the Titling Company Interest in a Collateral Lease and
the related Collateral Leased Vehicle or other remedy to be provided by the
Servicer upon the breach by the Servicer of a representation, warranty or covenant
with respect to such Collateral Lease and Collateral Leased Vehicle; and

          (vi) the reporting obligations of the Servicer of the related Reference Pool.

3

 

ARTICLE III

THE SERVICER

          Section 3.1 Appointment of Servicer. Pursuant to the related Titling Company Agreement,
each Holding Company, as Holder of the related Collateral Specified Interest Certificate,
acknowledges and agrees that it is responsible for the management and control of the related
Collateral Assets and accepts such responsibility. Each Holder, pursuant to the authority granted
to it under the related Titling Company Agreement appoints Ford Credit as Servicer under this
Agreement, including acting as agent of the related Titling Company in the management and control
of the Collateral Assets, including the Certificates of Title, and for all other purposes set forth
in this Agreement. In addition, the Collateral Agent, pursuant to the authority granted to it
under the HTD LLC Agreement, appoints Ford Credit as Servicer under this Agreement, including
acting as agent of the Collateral Agent in the management and control of the Collateral Assets,
including the Certificates of Title, and for all other purposes set forth in this Agreement. Ford
Credit accepts such appointments.

          Section 3.2 Representations of the Servicer. The Servicer makes the representations set
forth in this Section 3.2, on which the Lender, the Holding Companies and the Collateral
Agent are relying, and any Exchange Noteholder, in acquiring the related Exchange Note, will rely.
Such representations are effective as of the date of the Original Servicing Agreement.

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

          (b) Power, Authorization and Enforceability. The Servicer has the power and authority
to execute, deliver and perform the terms of this Agreement and the other Basic Documents to which
it is a party and to service the Collateral Leases and the Collateral Leased Vehicles and to hold
the Collateral Lease Files as custodian on behalf of the Holders of the Collateral Specified
Interest Certificates and the Certificates of Title on behalf of the Collateral Agent. The
Servicer has authorized the execution, delivery and performance of terms of this Agreement and the
other Basic Documents to which it is a party. This Agreement and each other Basic

4

 

Document to which the Servicer is a party is the legal, valid and binding obligation of the
Servicer enforceable against the Servicer, except as may be limited by insolvency, bankruptcy,
reorganization or other laws relating to the enforcement of creditors’ rights or by general
equitable principles.

          (c) No Conflicts and No Violation. The consummation of the transactions contemplated
by, and the fulfillment of the terms of, this Agreement and each other Basic Document to which the
Servicer is a party will not (i) conflict with or result in a breach of the terms or provisions of,
or constitute a default under any indenture, mortgage, deed of trust, loan agreement, guarantee,
lease financing agreement or similar agreement or instrument under which the Servicer is a debtor
or guarantor (other than this Agreement), (ii) result in the creation or imposition of any Lien
(material to the Servicer and its subsidiaries considered as a whole) upon any of the properties or
assets of the Servicer pursuant to the terms of any such indenture, mortgage, deed of trust, loan
agreement, guarantee or similar agreement (other than Permitted Liens or Liens contemplated by this
Agreement or any of the other Basic Documents to which it is a party), (iii) violate the
Certificate of Incorporation or the Bylaws of the Servicer or (iv) violate any law or, to the
Servicer’s knowledge, any order, rule or regulation applicable to the Servicer of any court or of
any Governmental Authority having jurisdiction over the Servicer or its properties, in each case,
the failure to comply with which would reasonably be expected to have a material adverse effect on
the Servicer’s ability to perform its obligations under this Agreement or any other Basic Document
to which it is a party.

          (d) No Proceedings. To the Servicer’s knowledge, there are no proceedings or
investigations pending or overtly threatened in writing before any Governmental Authority having
jurisdiction over the Servicer or its properties (i) asserting the invalidity of the Exchange
Notes, this Agreement or any of the other Basic Documents, (ii) seeking to prevent the consummation
of any of the transactions contemplated by this Agreement or any of the other Basic Documents or
(iii) seeking any determination or ruling that would reasonably be expected to have a material
adverse effect on the Servicer’s ability to perform its obligations under, or the validity or
enforceability of, this Agreement or any of the other Basic Documents to which it is a party.

          Section 3.3 Liability of the Servicer; Indemnities.

          (a) The Servicer will be liable under this Agreement only to the extent of the obligations
specifically undertaken by it under this Agreement and under any related Servicing Supplement, as
applicable.

          (b) The Servicer will indemnify, defend and hold harmless each Titling Company, the Holders of
the Collateral Specified Interest Certificates, the

5

 

Administrative Agent, the Collateral Agent, the Lender, each Exchange Noteholder and their
respective officers, directors, employees and agents (each, with respect to this Section
3.3(b), an “Indemnified Person”) from and against any and all taxes that may be
asserted against any such Person relating to the Collateral Leased Vehicles, including any sales,
gross receipts, personal property, privilege or license taxes (excluding U.S. federal, State or
local income, franchise taxes or, if applicable, Michigan Single Business Tax arising out of the
transactions contemplated by this Agreement, any Servicing Supplement and the other Basic
Documents) and costs and expenses of defending against the same.

          (c) 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, and such Exchange Noteholder, as applicable, and their respective officers, directors,
employees and agents (each, with respect to this Section 3.3(c), 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 Agreement, except to the extent that such cost, expense,
loss, damage, claim or liability: (i) is due to the willful misconduct, negligence or bad faith of
the Indemnified Person or (ii) in the case of the Administrative Agent, arises from the
Administrative Agent’s breach of any of its representations or warranties set forth in the Credit
and Security Agreement.

          (d) The Servicer, as custodian of the Collateral Lease Files, will indemnify the Holders of
the Collateral Specified Interest Certificates, the Administrative Agent, the Collateral Agent, the
Lender, each Exchange Noteholder and their respective officers, directors, employees and agents
(each, with respect to this Section 3.3(d), an “Indemnified Person”), from and
against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or
incurred in connection with, any improper act or omission relating to the maintenance and custody
by the Servicer or one of its custodians as custodian of the Collateral Lease Files.

          (e) Promptly upon receipt by an Indemnified Person of notice of the commencement of any
Proceeding against any such Indemnified Person, and if such Indemnified Person intends to make a
claim in respect of such Proceeding against the Servicer under Section 3.3(b), Section
3.3(c) or Section 3.3(d), as the case may be, such Indemnified Person will notify the
Servicer of the commencement of such Proceeding. Failure by the Indemnified Person to so notify
the Servicer will not relieve the Servicer of its obligations under this Section 3.3;
provided that the Servicer has not been materially prejudiced by such failure to so notify
and notice is given within 180 days of the Indemnified Person learning of such Proceeding. The
Servicer may participate in and assume the defense and settlement of any such

6

 

Proceeding at its expense, and no settlement of such Proceeding may be made without the
approval of the Servicer and such Indemnified Person, which approvals will not be unreasonably
withheld, delayed or conditioned. The Servicer’s indemnification obligations will include
reasonable fees and expenses of counsel and expenses of litigation. After notice from the Servicer
to such Indemnified Person of the Servicer’s intention to assume the defense of such Proceeding
with counsel reasonably satisfactory to such Indemnified Person, and so long as the Servicer so
assumes the defense of such Proceeding in a manner reasonably satisfactory to such Indemnified
Person, the Servicer will not be liable for any legal expenses of counsel to such Indemnified
Person unless there is a conflict between the interests of the Servicer and such Indemnified
Person, in which case the Servicer will pay for the separate counsel reasonably acceptable to the
Servicer and such Indemnified Person.

          (f) For purposes of this Section 3.3, if the Servicer’s rights and obligations as
Servicer are terminated pursuant to Section 8.1, Section 8.2 or Section
8.3, the Servicer nevertheless will be deemed to continue to be the Servicer under this
Agreement and any related Servicing Supplement pending appointment of a successor Servicer pursuant
to Section 8.4.

          (g) The Servicer’s obligations under this Section 3.3 with respect to the period such
Person was (or was deemed to be) the Servicer, will survive the termination of such Person as
Servicer or a resignation by such Person as Servicer as well as the termination of this Agreement
or the resignation or removal of the Administrative Agent or the Collateral Agent. If the Servicer
makes any indemnity payments to any Indemnified Person pursuant to this Section 3.3, (i)
the Servicer will be subrogated to any rights of such Indemnified Person to recover such amount
from any other Person and (ii) if such Indemnified Person thereafter collects any of such amounts
from any other Person, such Indemnified Person will promptly repay such amounts to the Servicer,
without interest.

          Section 3.4 Merger or Consolidation of, or Assumption of the Obligations of, Servicer. Any
Person (a) into which the Servicer may be merged or consolidated, (b) resulting from any merger or
consolidation to which the Servicer is a party, (c) succeeding to the business of the Servicer, or
(d) of which Ford Motor Company owns, directly or indirectly, more than 50% of the voting stock or
voting power and 50% or more of the economic equity, which Person in any of the foregoing cases
executes an agreement of assumption to perform every obligation of the Servicer under this
Agreement, will be the successor to the Servicer under this Agreement and any Servicing Supplement
without the execution or filing of any paper or any further act on the part of any of the parties
to this Agreement or any Servicing Supplement. The Servicer will provide notice of any such
merger, consolidation or succession to the Administrative Agent, the Lender, the Collateral Agent,
each Rating Agency and each Exchange Noteholder.

7

 

          Section 3.5 Delegation of Duties. So long as Ford Credit is the Servicer, the Servicer may
without notice or consent delegate any or all of its duties under this Agreement to Ford Motor
Company or any company or other business entity of which Ford Motor Company owns, directly or
indirectly, more than 50% of the voting stock or voting power and 50% or more of the economic
equity. The Servicer may perform any of its duties through subcontractors. No such delegation or
subcontracting will relieve the Servicer of its responsibilities with respect to such duties and
the Servicer will remain primarily responsible with respect thereto. The Servicer will be solely
responsible for the fees of any such delegates or sub-contractors.

          Section 3.6 Ford Credit Not to Resign as Servicer. Ford Credit will not resign as Servicer
under this Agreement except upon determination that the performance of its duties under this
Agreement is no longer permissible under law. Prior to the effectiveness of such resignation, Ford
Credit will deliver to the Administrative Agent, the Lender, the Collateral Agent, each Exchange
Noteholder and each Holder of a Collateral Specified Interest Certificate (a) notice of any such
determination permitting the resignation of Ford Credit as Servicer and (b) an Opinion of Counsel
to such effect. Any such resignation will become effective in accordance with Section
8.4(c).

          Section 3.7 Insurance.

          (a) Maintenance and Assignment of Insurance Policies. The Servicer will at all times
maintain, or cause to be maintained, Insurance Policies (which may be blanket policies covering the
Servicer and all of its Affiliates) with respect to the Collateral Leases and Collateral Leased
Vehicles owned by each Titling Company, that is consistent with the insurance, if any, that the
Servicer maintains from time to time for its own portfolio of leases and related leased vehicles.
The Servicer assigns to each Titling Company, the Holding Companies, the Lender, the Administrative
Agent, the Collateral Agent and each Exchange Noteholder (the “Covered Parties”) its rights
to proceeds under each such Insurance Policy maintained by it or any of its Affiliates, and agrees
that all insurance carried pursuant to this Section 3.7(a) will cover the interests of the
Covered Parties, in each case to the extent relating to the Collateral Leases and Collateral Leased
Vehicles. The Servicer will deliver Officer’s Certificates to each Covered Party regarding such
Insurance Policies in accordance with Section 9.4.

          (b) Vicarious Liability. To the extent that the Servicer self-insures vicarious
liability suffered by the Covered Parties that arises out of the use or operation of the Collateral
Leased Vehicles, the Servicer will indemnify the Covered Parties for any uninsured losses relating
to such vicarious liability.

8

 

          Section 3.8 Execution of Documents; Licenses and Applications.

          (a) The Servicer will be responsible for compliance by each Titling Company with all
Applicable Laws governing the conduct and activities of such Titling Company and its qualifications
to do business in any jurisdiction.

          (b) The Servicer, at its expense, will obtain all material licenses required by the Applicable
Laws of any jurisdiction in which the Servicer, in its sole discretion, deems necessary for the
conduct of the activities of the Servicer, the Collateral Agent and the Titling Companies, or, in
the case of the Titling Companies, the ownership of the Collateral Leases or the ownership and
leasing of the Collateral Leased Vehicles and will make all filings and pay all fees as may be
required in connection with such licenses during the term of this Agreement.

          (c) The Servicer is authorized and directed, as attorney-in-fact or otherwise to prepare,
execute and deliver, on behalf of each Holding Company and each Titling Company:

          (i) any applications, instruments and other documents deemed necessary or
appropriate in the sole discretion of the Servicer to comply with, and effect the
purposes of, Section 3.8(a) and (b); and

          (ii) any registration statement to be filed with the Commission or otherwise,
any offering document (whether relating to a public or private offering) and any
financial statements for the Titling Companies to be included in any such
registration statement or offering document.

          Section 3.9 Fees and Expenses.

          (a) Revolving Facility Pool Servicing Fee. The Servicer will be paid the Revolving
Facility Pool Servicing Fee in consideration for, among other things, (i) servicing the Revolving
Facility Pool, (ii) the allocable cost of maintaining Insurance Policies pursuant to Section
3.7 and (iii) paying the fees and expenses set forth in Section 3.9(d), in each case
relating to the Revolving Facility Pool. The Revolving Facility Pool Servicing Fee will be payable
solely from, and the right of the Servicer to receive the Revolving Facility Pool Servicing Fee
will be limited in recourse to, the Collections and other amounts applied to the payment of such
fee pursuant to the Credit and Security Agreement.

          (b) Reference Pool Servicing Fee. The Servicer will be paid the Reference Pool
Servicing Fee for each Reference Pool in consideration for, among

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other things, (i) servicing such Reference Pool, (ii) the allocable cost of maintaining
Insurance Policies pursuant to Section 3.7 and (iii) paying the fees and expenses set forth
in Section 3.9(d), in each case relating to such Reference Pool. The Reference Pool
Servicing Fee for each Reference Pool will be payable solely from, and the right of the Servicer to
receive the Reference Pool Servicing Fee for each Reference Pool will be limited in recourse to,
the Collections and other amounts applied to the payment of such fee pursuant to the Credit and
Security Agreement.

          (c) Collateral Specified Interest Servicing Expenses. Except as otherwise provided in
this Agreement or the Servicing Supplements, the Servicer will be required to pay all expenses
incurred by it in connection with its activities under this Agreement or any Servicing Supplement,
including fees and disbursements of independent accountants, taxes imposed on the Servicer and
expenses incurred in connection with distributions and reports. The Servicer may charge Lessees of
the Collateral Leased Vehicles, and be reimbursed, for (i) collection, repossession, transportation
and remarketing expenses and (ii) amounts required to be paid by a Lessee that are paid by the
Servicer (such as liabilities or other fines).

          (d) Other Fees and Expenses. The Servicer will pay from the Servicing Fee, (i) the
applicable Titling Company Trustee/Registrar Fee to each Titling Company Trustee/Registrar, (ii)
the applicable Titling Company Administrator Fee to each Titling Company Administrator, (iii) all
general corporation, intangible, franchise, privilege or license taxes with respect to the
Collateral Leases and Collateral Leased Vehicles and (iv) the portion of the compensation of the
Managers of each Titling Company allocable to the related Collateral Specified Interest.

          Section 3.10 Termination. This Agreement may be terminated at the option of the Servicer
or the Holding Companies at any time following the termination of the Revolving Period and the
payment in full of all Outstanding Exchange Notes and the Advances outstanding under the Revolving
Facility; provided, that the rights and obligations of the parties to this Agreement under
Section 3.3 will survive any such termination.

ARTICLE IV

PURCHASE OF LEASES AND LEASED VEHICLES 

          Section 4.1 Origination by Dealers; Role of Servicer. The Servicer will maintain its
relationship with Dealers in its individual capacity in the ordinary course of its business. The
Servicer will, on behalf of the Titling Companies, acquire, for the account of the Titling
Companies, Leases and Leased Vehicles from Dealers for allocation to the Collateral Specified
Interest on an ongoing basis during the term

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of this Agreement in accordance with Section 4.3. The Servicer will direct each Dealer to
originate each Lease on a form providing for assignment of the related Leased Vehicle by the Dealer
to a Titling Company as set forth in Section 4.2.

          Section 4.2 Administration and Titling of Leased Vehicles.

          (a) The Servicer will cause the Certificate of Title for each Leased Vehicle acquired pursuant
to Section 4.1 to be issued in the name and in the manner specified in the related Titling
Company Agreement.

          (b) The Servicer will direct the Dealers to (i) cause the Certificate of Title with respect to
each Collateral Leased Vehicle to reflect “HTD Leasing LLC” or such substantially similar words as
the relevant Governmental Authority will accept, as the recorded lienholder or recorded holder of a
security interest with respect to each Leased Vehicle that is acquired pursuant to this Section
4.2, and (ii) identify the security agreement that gives rise to the Lien in favor of the
Collateral Agent in any manner acceptable to the applicable Governmental Authority, and may
indicate the date of such security agreement as the date of the applicable Lease.

          Section 4.3 Purchase of Leases and Leased Vehicles.

          (a) Purchase of Leases. Upon entering into a Lease, a Dealer will assign such Lease,
the related Leased Vehicle and rights to any related security deposit to the applicable Titling
Company for allocation to the Collateral Specified Interest of such Titling Company against payment
of the related Dealer Proceeds. The Servicer will pay, or cause to be paid, to the related Dealer
an amount equal to the Dealer Proceeds with respect to such Lease and Leased Vehicle from (i) the
proceeds of an Advance made pursuant to Section 2.01(e) of the Credit and Security
Agreement and (ii) from additional funds provided by Ford Credit (which additional amounts will be
deemed to constitute capital contributions by Ford Credit to the applicable Holding Company and, in
turn, by such Holding Company to the applicable Titling Company for allocation to the Collateral
Specified Interest of such Titling Company).

          (b) Net Remittance. For so long as Ford Credit is the Servicer and the Lender, Ford
Credit may retain, for its own account, Collections with respect to the Revolving Facility Pool to
the extent of amounts (i) to be paid to Ford Credit, as Servicer in respect of the Revolving
Facility Pool Servicing Fee, (ii) to be paid to Ford Credit, as Lender, for interest, principal or
other amounts with respect to the Revolving Facility, and (iii) for which Ford Credit, as Servicer,
is entitled to be reimbursed pursuant to Section 3.9(c). The Servicer will separately
account for all such remittances and payments.

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          Section 4.4 Listing of Vehicle Identification Numbers. The Servicer will maintain a list
of the vehicle identification numbers or other identifying account number for all Leases and Leased
Vehicles acquired for allocation to the Collateral Specified Interest and provide such list (or
access to such list) to the Holding Companies, the Lender, the Administrative Agent, the Collateral
Agent and the Titling Company Administrator no less frequently than monthly.

ARTICLE V

COLLECTIONS AND APPLICATION OF FUNDS

          Section 5.1 Remittance.

          (a) The Servicer may retain Collections with respect to the Revolving Facility Pool for its
own account until such amounts are required to be applied pursuant to Article X of the
Credit and Security Agreement.

          (b) The Servicer will deposit the Collections with respect to each Reference Pool into the
related Collection Account pursuant to the remittance schedule set forth in the related Servicing
Supplement. If no such remittance schedule is specified in the Servicing Supplement with respect
to any Reference Pool, the Servicer will be permitted to retain Collections with respect to such
Reference Pool for its own account until such amounts are required to be applied pursuant to
Article X of the Credit and Security Agreement or the applicable Exchange Note Supplement.

          Section 5.2 Establishment of Certain Accounts.

          (a) On or before the Closing Date, the Servicer will establish a segregated trust account in
the name of the Collateral Agent at a Qualified Institution or a Qualified Trust Institution, to be
designated as the “Collection Account” with respect to the Revolving Facility Pool, into which
Collections with respect to the Revolving Facility Pool will be deposited (except to the extent
that such Collections are permitted to be retained pursuant to Section 4.3(b) of this
Agreement and Section 2.04(b) of the Credit and Security Agreement). On or before each
Exchange Note Issuance Date, the Servicer will establish (i) a segregated trust account, each in
the name of the Collateral Agent or such other entity as may be specified in the applicable
Servicing Supplement, at a Qualified Institution or Qualified Trust Institution, to be designated
as the “Exchange Note Collection Account” with respect to the related Reference Pool, into
which Collections with respect to such Reference Pool will be deposited and (ii) a segregated trust
account, each in the name of the Collateral Agent or such other entity as may be specified in the
applicable Servicing Supplement, at a Qualified Institution or Qualified Trust Institution, to be
designated

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as the “Reserve Account” with respect to the related Reference Pool. All such
Accounts will collectively be referred to as the “Bank Accounts”.

          (b) Each Bank Account will be a “securities account” within the meaning of Section 8-501 of
the Uniform Commercial Code of the State of New York (the “New York UCC”).

          (c) Control of the Bank Accounts. The Collection Account with respect to the
Revolving Facility Pool will be under the sole dominion and control of the Collateral Agent, as
secured party for the benefit of the Secured Parties; provided, that following the payment
in full of the Revolving Facility Balance and the termination of the Revolving Facility, such
Collection Account will be under the sole dominion and control of the Borrowers. However, the
Servicer may make deposits to or request the Collateral Agent (or, following the payment in full of
the Revolving Facility Balance and the termination of the Revolving Facility, the Borrowers) to
make deposits to or withdrawals from such Collection Account in accordance with the Credit and
Security Agreement and this Agreement. All monies deposited in such Collection Account pursuant to
the Credit and Security Agreement and this Agreement will be held (i) until the payment in full of
the Revolving Facility Balance and the termination of the Revolving Facility, by the Collateral
Agent and (ii) following the payment in full of the Revolving Facility Balance and the termination
of the Revolving Facility, by or on behalf of the Borrowers, and in each case will be applied only
upon the terms and conditions of the Basic Documents. The authority of the Servicer to make
deposits to the Collection Account with respect to the Revolving Facility Pool is revocable at any
time by the Collateral Agent until the payment in full of the Revolving Facility Balance and the
termination of the Revolving Facility, and thereafter by the Borrowers.

          The rights of the parties in, to and under each Bank Account that is established with respect
to a Reference Pool will be governed by the terms of the related Servicing Supplement.

          (d) Agreement with Depository Institution. Except as otherwise provided in the
related Servicing Supplement (if applicable), each Bank Account will only be established at a
Qualified Institution or Qualified Trust Institution that agrees in writing that:

          (i) all securities, instruments, cash or other property delivered to it
pursuant to the Credit and Security Agreement, the applicable Exchange Note
Supplement, this Agreement or the applicable Servicing Supplement and all
investments of funds held in any such Collection Account will be promptly credited
to such Collection Account;

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          (ii) all securities, instruments, cash or other property credited to any such
Collection Account will be treated as a “financial asset” within the meaning of
Section 8-102(a)(9) of the New York UCC;

          (iii) at all times prior to being notified by the Collateral Agent that the
Revolving Facility Balance and each Exchange Note have been paid in full, the
Revolving Facility has been terminated and the Bank Accounts have been released
from the security interest granted pursuant to Section 3.02 of the Credit
and Security Agreement, it will comply with “entitlement orders” (as defined in
Section 8-102(a)(8) of the New York UCC) originated by the secured party without
further consent of the Borrowers or any other Person; and

          (iv) the law of the State of New York will govern each such Bank Account.

          (e) Compliance. If at any time an institution maintaining one of the Bank Accounts
ceases to be a Qualified Institution or Qualified Trust Institution, the Servicer will, with the
Collateral Agent’s, the Administrative Agent’s or the Borrowers’ assistance as necessary, within 10
Business Days (or such longer period not to exceed 30 calendar days as to which each Rating Agency
may consent), move such Bank Account to a Qualified Institution or Qualified Trust Institution.

          (f) Withdrawal of Funds Not Constituting Collections. The Servicer may direct the
Collateral Agent or such other entity maintaining control over the applicable Collection Account to
withdraw from any Collection Account and pay to the Servicer or deliver to the applicable party for
deposit into another Collection Account, amounts that do not constitute Collections for any
Collection Period or that were deposited into such Collection Account in error.

          Section 5.3 Investment of Amounts in the Bank Accounts.

          (a) Permitted Investments. So long as no Facility Default has occurred and is
continuing, amounts on deposit in the Bank Accounts will, to the extent permitted by Applicable Law
and except to the extent otherwise provided in a Servicing Supplement, be invested as directed by
the Servicer to the Qualified Institution or Qualified Trust Institution maintaining such account,
in Permitted Investments that will not be sold prior to maturity and that mature no later than the
Business Day preceding the Payment Date for the Collection Period to which such amounts relate.
However, the Servicer will not direct the Qualified Institution or Qualified Trust Institution
maintaining such account to make any investment of any

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funds or to sell any investment held in such account unless the security interest granted and
perfected in such account in favor of the entity maintaining control over such Bank Account will
continue to be perfected in such investment or the proceeds of such sale, in each case, without any
further action by any Person. If requested by the Collateral Agent or such other entity
maintaining control over the applicable Bank Account, the Servicer will deliver an Opinion of
Counsel to such party and the Administrative Agent with respect to the perfection of such security
interest.

          (b) Application of Investment Earnings and Losses. The Servicer may from time to time
instruct the Collateral Agent or such other entity maintaining control over the applicable Bank
Account, as applicable, to withdraw and distribute to the Servicer all investment earnings (net of
losses) on amounts on deposit in the Bank Accounts as additional servicing compensation. The
Servicer will, on or before each Payment Date, deposit into the related Bank Accounts from its own
funds all net investment losses, if any, and investment expenses resulting from Permitted
Investments on deposit in the Bank Accounts incurred during the related Collection Period.

          (c) Tax Reporting of Investment Income. All investment income on amounts deposited to
the Collection Accounts established with respect to the Revolving Facility or any Bank Accounts
established with respect to any Reference Pool will be reported for U.S. federal income tax
purposes as earned by the Titling Companies and will be reported by the Holding Companies (or such
entity from which the Holding Companies may be disregarded as separate for U.S. federal income tax
purposes).

ARTICLE VI

ADMINISTRATION AND SERVICING OF LEASES

          Section 6.1 Duties of Servicer. The Servicer will manage, service, administer and make
collections on the Collateral Assets, together with any Dealer Recourse Rights and Insurance
Policies maintained with respect to the Collateral, and, to the extent applicable, perform all of
its other obligations, and exercise its rights, under this Agreement and any Servicing Supplement,
with reasonable care and in accordance with the Credit and Collection Policy. The Servicer’s
duties will include:

          (a) collecting and Posting (A) all amounts received from Lessees relating to the Collateral
Leases (including any security deposits but only when those amounts are applied to pay amounts that
a Lessee fails to pay relating to a Collateral Lease), (B) all amounts received in respect of
Insurance Policies with respect to the Collateral Leases, (C) all amounts received on any
Collateral Lease in respect of any

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Dealer Recourse Rights and (D) all proceeds realized on the sale or other disposition of the
Collateral Leased Vehicles;

          (b) collecting and remitting state and local taxes relating to the Collateral Leases and
Collateral Leased Vehicles;

          (c) responding to inquiries of Lessees on the Collateral Leases;

          (d) investigating delinquencies relating to the Collateral Leases;

          (e) accounting for Collections and furnishing statements to the Titling Companies and the
Holders with respect to such Collections;

          (f) repossessing or otherwise converting the possession of the Collateral Leased Vehicle
relating to any Collateral Lease as to which the Servicer has determined eventual payment in full
is unlikely;

          (g) selling or otherwise disposing of any Collateral Leased Vehicle repossessed or returned by
the related Lessee in connection with a termination of the related Collateral Lease;

          (h) collecting any remaining balance on the Collateral Leases after disposition of any
repossessed or returned Collateral Leased Vehicle;

          (i) acting as agent of the Titling Companies as Borrowers, pursuant to Section 2.02 of
the Credit and Security Agreement; and

          (j) acting as agent of the Collateral Agent with respect to holding the Certificates of Title.

          Section 6.2 Collection of Payments. The Servicer will make reasonable efforts to collect
all payments called for under the Collateral Leases as and when the same becomes due. Subject to
the provisions of the applicable Servicing Supplement, the Servicer may grant extensions, waivers,
rebates, modifications or adjustments with respect to any Collateral Lease.

          Section 6.3 Allocation of Collections. The Servicer will apply and allocate amounts
received from Lessees and other Persons with respect to the Collateral Leases and the related
Collateral Leased Vehicles. If a Lessee is obligated under one or more Collateral Leases and also
under one or more other assets owned by Ford Credit or assigned by Ford Credit to third parties,
then any payment on any such asset received from or on behalf of such Lessee will, if identified as
being made with respect to a particular item or asset, be applied to such item or asset, and

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otherwise will be allocated by Ford Credit in accordance with the Credit and Collection Policy.

          Section 6.4 Other Authorized Actions with Respect to the Servicing of the Collateral
Leases. The Servicer is authorized to execute and deliver, on behalf of each Titling Company
and the Holders of the Collateral Specified Interest Certificates, any and all instruments of
satisfaction or cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to Collateral Leases or to the related Collateral Leased Vehicles. If
the Servicer commences a legal proceeding to enforce a Collateral Lease against a Lessee, the
related Titling Company will be deemed to have assigned, solely for the purpose of collection, such
Collateral Lease to the Servicer. If in any legal proceeding it is held that the Servicer may not
enforce a Collateral Lease on the ground that it is not a real party in interest, the Titling
Company or the Holder of the related Collateral Specified Interest Certificate, will, at the
Servicer’s expense and direction, take steps to enforce the Collateral Lease, including bringing
suit in its own name. Each Titling Company will furnish the Servicer with any powers of attorney
and other documents reasonably necessary or appropriate to enable the Servicer to carry out its
servicing and administrative duties hereunder. The Servicer is further authorized to obtain all
licenses and make all filings, in each case on behalf of the Titling Companies, as are required in
connection with the performance of its obligations pursuant to Section 3.8(a) and
Section 3.8(b).

          Section 6.5 Custody of Collateral Lease Files; Custodial Duties.

          (a) Appointment of Custodian. The Holders of the Collateral Specified Interest
Certificates appoint the Servicer to act as the agent of such Holders, and the Servicer accepts
such appointment. In addition, the Collateral Agent appoints the Servicer to act as its agent as
custodian of the Collateral Lease Files, and the Servicer accepts such appointment. Upon any
reallocation, assignment or distribution of a Collateral Asset, the Servicer will deliver the
related Collateral Lease Files to the Person identified on the related Reallocation Notices or
Assignment Notices, as soon as practicable. The Servicer confirms to the Holders of the Collateral
Specified Interest Certificates and the Collateral Agent that it has received all the documents and
instruments necessary to act as the agent of the Holders of the Collateral Specified Interest
Certificates and the Collateral Agent for the purposes set forth in this Section 6.5,
including the Collateral Lease Files.

          (b) Duties of Custodian. Except as permitted by Section 6.5(c), the Servicer
will hold the Collateral Lease Files on behalf of the applicable Titling Company and the
Certificates of Title on behalf of the Collateral Agent for the use and benefit of the Holders of
the Collateral Specified Interest Certificates and will maintain, or cause to be maintained, such
accurate and complete accounts, records

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and computer systems pertaining to each Collateral Lease File as will enable the Servicer to
comply with this Agreement and the related Titling Company Agreement. The Servicer will perform
its duties as custodian of the Collateral Lease Files in such a manner as will enable the Holders
of the Collateral Specified Interest Certificates and the Collateral Agent to verify the accuracy
of the Servicer’s record keeping.

          (c) Location of Records. The Servicer will maintain each Collateral Lease File at one
of its offices in the United States or the offices of one of its custodians specified in
Exhibit C of this Agreement, or at such other office of one of its custodians as specified
to the Holders of the Collateral Specified Interest Certificates and the Collateral Agent by notice
not later than 90 days after any change in location.

          (d) Access to the Collateral Lease Files and Related Records. The Servicer will
provide access to the Collateral Lease Files, and the related accounts, records, and computer
systems maintained by the Servicer to the Titling Companies, the Titling Company
Trustee/Registrars, the Holders of the Collateral Specified Interest Certificates, the Collateral
Agent, any owner trustee or indenture trustee with respect to any debt offering issued by an
Exchange Noteholder and secured by an Exchange Note, at such times as such persons direct, but only
upon reasonable notice and during the normal business hours of the respective offices of the
Servicer. Nothing in this Section 6.5(d) will affect the obligation of the Servicer to
observe any Applicable Law prohibiting disclosure of information regarding the Lessees, and the
failure of the Servicer to provide access to information as a result of such obligation will not
constitute a breach of this Section 6.5(d).

          (e) Release of Documents. Upon instructions from the Holders of the Collateral
Specified Interest Certificates, the Servicer will release or cause to be released any document in
the Collateral Lease Files (except the Certificates of Title which will be delivered to the
Collateral Agent) to such Holder, at such place or places as such Holder may designate, as soon
thereafter as is practicable. In addition, upon instructions from the Collateral Agent, the
Servicer will release or cause to be released any Certificate of Title to the Collateral Agent, at
such place or places as the Collateral Agent may designate, as soon thereafter as is practicable.
Any document so released will be handled by such Holder or the Collateral Agent (or such Person’s
agent or designee) with due care and in compliance with all laws and returned to the Servicer for
safekeeping as soon as such Holder or the Collateral Agent (or such Person’s agent or designee), as
the case may be, has no further need therefor.

          (f) Instructions; Authority to Act. All instructions to the Servicer will be signed
by an Authorized Officer of the party delivering such instructions, and the Servicer will be deemed
to have received proper instructions with respect to the Collateral Lease Files upon its receipt of
such instructions.

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          (g) Effective Period and Termination. The Servicer’s appointment as custodian will
become effective as of the Series Cutoff Date and will continue in full force and effect until
terminated pursuant to this Section 6.5. If Ford Credit resigns as Servicer in accordance
with this Agreement or if all of the rights and obligations of the Servicer have been terminated
under Section 8.1, the appointment of the Servicer as custodian under this Agreement may be
terminated by the Holders of the Collateral Specified Interest Certificates, in the same manner as
the Servicer may be terminated under Section 8.1. As soon as practicable after any
termination of such appointment, the Servicer will deliver to each Holder or its agents, as the
case may be, the Collateral Lease Files (other than the Certificates of Title, which will be
delivered to the Collateral Agent) and the related accounts and records maintained by the Servicer
at such place or places as the Holders of the Collateral Specified Interest Certificates may
reasonably designate. All reasonable costs and expenses incurred in connection with transferring
the Collateral Lease Files to the successor custodian and amending this Agreement to reflect such
successor as custodian will be paid by the predecessor custodian upon presentation of documentation
of such costs and expenses.

          Section 6.6 Maintenance of Record Interests in Collateral Leased Vehicles.

          (a) In accordance with the Titling Company Agreements, the Servicer, on behalf of the Holders
of the Collateral Specified Interest Certificates, will take the steps necessary to maintain
evidence of the interest of each Titling Company in each Collateral Leased Vehicle held by such
Titling Company on the related Certificate of Title. Each Titling Company authorizes the Servicer
to take the steps on behalf of such Titling Company necessary to record the interest of such
Titling Company in the event of the relocation of a Leased Vehicle or for any other reason. The
Servicer will not allow any Collateral Leased Vehicle to be titled in the name of a Titling Company
unless the related Certificate of Title has been issued by a state or jurisdiction that is an
Eligible State with respect to such Titling Company.

          (b) The Servicer will direct each Titling Company to distribute to the related Holding
Company, as Holder of the applicable Collateral Specified Interest Certificate, and the Titling
Company will distribute to such Holding Company (and such Holding Company, in turn will distribute
to Ford Credit, as sole member thereof) any Collateral Leased Vehicle that the Servicer determines,
in its sole discretion, the Titling Company is not authorized to own. In connection with each such
distribution, the Servicer will (i) deliver an Assignment Notice to the Titling Company
Administrator with respect to such Collateral Leased Vehicle and related Collateral Lease and (ii)
cause the Certificate of Title with respect to such Collateral Leased Vehicle to be retitled in the
name of the Servicer or its designee.

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          Section 6.7 No Impairment. The Servicer will not impair the rights of any Titling Company
in the Collateral Leases or Collateral Leased Vehicles except in accordance with the Credit and
Collection Policy, as required by law, or as otherwise permitted by this Agreement.

ARTICLE VII

SALE OF COLLATERAL LEASED VEHICLES

          Section 7.1 Termination of Collateral Leases; Return of Collateral Leased Vehicles.

          (a) The Servicer will cause each Collateral Leased Vehicle that is returned to the Servicer or
its agent or bailee (whether as a result of the return of such Collateral Leased Vehicle by the
Lessee on or around the Scheduled Lease End Date, repossession or otherwise), where such Collateral
Leased Vehicle is not purchased by the Lessee or Dealer, to be inspected for Excess Wear and Use,
Excess Mileage, and the need for any repairs and will cause a vehicle condition report to be
delivered to the Servicer.

          (b) The Servicer will require the Lessees to pay Excess Wear and Use or Excess Mileage in
accordance with the terms of each Collateral Lease.

          Section 7.2 Sale of Collateral Leased Vehicles.

          (a) Sale to Lessee or Dealer. If a Dealer or Lessee advises the Servicer that it
wishes to exercise its Dealer Purchase Option or Lessee Purchase Option with respect to any
Collateral Leased Vehicle, the Servicer, on behalf of the applicable Titling Company and the
Holders of the Collateral Specified Interest Certificates, will sell such Collateral Leased Vehicle
to such Dealer or Lessee (either directly or by sale to such Dealer for resale to the related
Lessee). In the case of a Collateral Lease to which the Dealer Purchase Option does not apply or
otherwise is not exercised, the Servicer may sell the Collateral Leased Vehicle to the Dealer or to
another dealer at a price determined by the Servicer.

          (b) Sale at Auction. The Servicer will sell at auction or otherwise dispose of any
Collateral Leased Vehicle in the possession of the Servicer or its agent or bailee (whether as a
result of the return of such Collateral Leased Vehicle by the Lessee on or around the Scheduled
Lease End Date, repossession or otherwise) if, to the extent applicable, neither the Dealer nor the
Lessee purchases such Collateral Leased Vehicle in the manner described in Section 7.2(a).

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          (c) Procedures Upon Sale. In connection with the sale or other disposition of a
Collateral Leased Vehicle pursuant to Section 7.2(a) or Section 7.2(b), the
Servicer will, upon receipt of proceeds of such sale:

          (i) on behalf of the Collateral Agent, deliver the related Certificate of
Title to the purchaser of such Collateral Leased Vehicle;

          (ii) deliver an Assignment Notice with respect to such Collateral Leased
Vehicle to the applicable Titling Company Administrator; and

          (iii) change its records to reflect the termination of the applicable Titling
Company’s interest in such Collateral Lease and Collateral Leased Vehicle.

          Section 7.3 Security Deposits. If the Servicer determines, in its sole discretion, that
such action is required by Applicable Law, the Servicer will maintain a security deposit in a
segregated account, and otherwise the Servicer will maintain a record on its books of such security
deposit. The Servicer will apply any security deposit in accordance with the Credit and Collection
Policy.

ARTICLE VIII

SERVICER DEFAULT

          Section 8.1 Facility Servicer Event of Default.

          (a) The occurrence of an Insolvency Event with respect to the Servicer will be a “Facility
Servicer Event of Default.”

          (b) The Servicer will notify each Titling Company, each Holder of a Collateral Specified
Interest Certificate, the Lender, the Administrative Agent, the Collateral Agent, each Rating
Agency and each Exchange Noteholder of any Facility Servicer Event of Default, no later than 5
Business Days after an Authorized Officer of the Servicer obtains knowledge of such event.

          (c) If a Facility Servicer Event of Default has occurred, (i) so long as any Exchange Notes
remain Outstanding, the Holders of Exchange Notes representing at least 50% of the aggregate
Exchange Note Balance (voting as a single class), (ii) if there are no Exchange Notes Outstanding,
but the Revolving Facility Balance is greater than zero or the Revolving Facility has not been
terminated, the Lender and (iii) otherwise, the Holding Companies, in each case by notice to the

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Servicer, the Administrative Agent, the Lender, the Collateral Agent and each Exchange
Noteholder may terminate all of the rights and obligations (other than the rights and obligations
of the Servicer set forth in Section 3.3) of the Servicer under this Agreement.

          Section 8.2 Revolving Facility Servicer Events of Default.

          (a) The occurrence and continuation of any of the following events will be a “Revolving
Facility Servicer Event of Default”:

          (i) Any failure by the Servicer to deliver to the Collateral Agent or the
Administrative Agent, or deposit into the Collection Account with respect to the
Revolving Facility Pool, any proceeds or payment required to be so delivered with
respect to the Revolving Facility Pool under this Agreement that continues
unremedied for a period of 5 Business Days after the earlier of the date on which
(x) notice of such failure is given to the Servicer from the Lender or (y) an
Authorized Officer of the Servicer has actual knowledge of such failure;
provided that such event will not be a Revolving Facility Servicer Event
of Default if either:

	 	(A)	 	such failure is caused by
an event outside the control of the Servicer that the
Servicer could not have avoided through the exercise of
commercially reasonable efforts; or

	 	(B)	 	(1) such failure or delay
could not reasonably be expected to, or upon investigation
and quantification does not, result in the failure or delay
in paying or depositing an amount greater than 1.0% of the
Revolving Facility Balance and (2) such failure or delay is
remedied within a reasonable period in light of the
circumstances; or

          (ii) Any failure by the Servicer to observe or to perform in any material
respect any other covenants or agreements of the Servicer set forth in this
Agreement with respect to the Revolving Facility which failure (A) materially and
adversely affects the rights of the Administrative Agent or the Lender and (B)
continues unremedied for a period of 60 days after notice of such failure is given
to the Servicer from the Administrative Agent or the Lender or any Exchange
Noteholder;

22

 

          (b) The Servicer will notify each Titling Company, each Holder of a Collateral Specified
Interest Certificate, the Lender, the Administrative Agent, the Collateral Agent, each Rating
Agency and each Exchange Noteholder of any event that with the giving of notice or lapse of time,
or both, would become a Revolving Facility Servicer Event of Default, no later than 5 Business Days
after an Authorized Officer of the Servicer obtains knowledge of such event. However, the Servicer
is not required to provide such notice if, during such 5 Business Days (i) such event has been
cured, (ii) the Servicer is actively pursuing a cure, or (iii) in the case of an event that with
the giving of notice or lapse of time, or both, would become a Revolving Facility Servicer Event of
Default under Section 8.2(a)(i), the Servicer determines that such event would satisfy
Section 8.2(a)(i)(B). If the Servicer subsequently determines that an event of the type
described in clause (iii) of the preceding sentence no longer would satisfy Section
8.2(a)(i)(B), the Servicer will provide notice of such event in accordance with this
Section 8.2(b) no later than 5 Business Days after such determination.

          (c) If a Facility Servicer Event of Default occurs and has not been remedied, (i) if the
Revolving Facility Balance is greater than zero or the Revolving Facility has not been terminated,
the Lender and (ii) otherwise, the Holding Companies, in each case by notice to the Servicer, the
Administrative Agent, the Collateral Agent and the Lender, may terminate all of the rights and
obligations (other than the rights and obligations of the Servicer set forth in Section
3.3) of the Servicer under this Agreement, but solely with respect to the servicing of the
Revolving Facility Pool.

          Section 8.3 Exchange Note Servicer Events of Default.

          (a) The occurrence and continuation of any of the following events will be an “Exchange
Note Servicer Event of Default”:

          (i) Any failure by the Servicer to deliver to the Administrative Agent any
proceeds or payment required to be so delivered with respect an Exchange Note
under this Agreement or the applicable Servicing Supplement that continues
unremedied for a period of 5 Business Days after the earlier of the date on which
(x) notice of such failure is given to the Servicer from the Administrative Agent
or (y) an Authorized Officer of the Servicer has actual knowledge of such failure;
provided, that such event will not be a Exchange Note Servicer Event of
Default if either:

	 	(A)	 	such failure is caused by
an event outside the control of the Servicer that the
Servicer could not have avoided through the exercise of

23

 

	 	 	 	commercially reasonable efforts, (2) such failure does
not continue for more than 10 Business Days after the
earlier of the date on which notice of such failure is
given to an Authorized Officer of the Servicer or an
Authorized Officer of the Servicer learns of such
failure, (3) during such period the Servicer uses all
commercially reasonable efforts to perform its
obligations under this Agreement and (4) the Servicer
provides the Lender, the Administrative Agent and the
Exchange Noteholder of the related Exchange Note with
prompt notice of such failure that includes a
description of the Servicer’s efforts to remedy such
failure; or

	 	(B)	 	(1) such failure or delay
could not reasonably be expected to, or upon investigation
and quantification does not, result in the failure or delay
in paying or depositing an amount greater than 0.05% of the
applicable Exchange Note Balance and (2) such failure or
delay is remedied within a reasonable period in light of the
circumstances, but in no event later than (x) as long as the
Servicer’s long-term debt rating is at least “Baa3” by
Moody’s, “BBB-” by S&P and “BBB-” by Fitch, 90 days after an
Authorized Officer of the Servicer obtains actual knowledge
of such failure or delay and (y) if the Servicer’s long-term
debt rating does not satisfy the requirements of clause (x),
90 days after the payment was due; or

          (ii) Any failure by the Servicer to observe or to perform in any material
respect any other covenants or agreements of the Servicer with respect to an
Exchange Note set forth in this Agreement or the applicable Servicing Supplement
which failure (A) materially and adversely affects the rights of the
Administrative Agent or the related Exchange Noteholder and (B) continues
unremedied for a period of 60 days after notice of such failure is given to the
Servicer from the Administrative Agent or the related Exchange Noteholder.

          (b) The Servicer will notify each Titling Company, each Holder of a Collateral Specified
Interest Certificate, the Lender, the Administrative Agent, the

24

 

Collateral Agent, each Rating Agency, the Exchange Noteholder, any owner trustee and any
indenture trustee of the related Exchange Note of any event that with the giving of notice or lapse
of time, or both, would become an Exchange Note Servicer Event of Default, no later than 5 Business
Days after an Authorized Officer of the Servicer obtains actual knowledge of such event. However,
the Servicer is not required to provide such notice if, during such 5 Business Days (i) such event
has been cured, (ii) the Servicer is actively pursuing a cure, or (iii) in the case of an event
that with the giving of notice or lapse of time, or both, would become an Exchange Note Servicer
Event of Default under Section 8.3(a)(i), the Servicer determines that such event would
satisfy Section 8.3(a)(i)(B). If the Servicer subsequently determines that an event of the
type described in clause (iii) of the preceding sentence no longer would satisfy Section
8.3(a)(i)(B), the Servicer will provide notice of such event in accordance with this
Section 8.3(a)(i) no later than the 5 Business Days after such determination.

          (c) If an Exchange Note Servicer Event of Default occurs and has not been remedied (or, in
connection with the occurrence of an Insolvency Event of the Servicer pursuant to Section
8.1(a), if the requisite Holders of the Outstanding Exchange Notes have not voted to terminate
the Servicer pursuant to Section 8.1(c)), (i) so long as the related Exchange Note remains
Outstanding, the Exchange Noteholder of such Exchange Note and (ii) otherwise, the Lender, in each
case by notice to the Servicer, the Administrative Agent and the Collateral Agent, may terminate
all of the rights and obligations (other than the rights and obligations of the Servicer set forth
in Section 3.4) of the Servicer under this Agreement, but solely with respect to the
servicing of the related Reference Pool.

          Section 8.4 Appointment of Successor Servicer.

          (a) Upon the receipt by the Servicer of a notice of termination pursuant to Section
8.1, Section 8.2 or Section 8.3 (or such later date as may be specified in such
notice of termination), all authority and power of the Servicer under this Agreement (in the case
of a termination pursuant to Section 8.2 or Section 8.3, solely to the extent of
the rights so terminated) will pass to and be vested in the successor Servicer as may be appointed
under this Section 8.4. In such event, the Holding Companies, the Lender, the
Administrative Agent and the Titling Companies are authorized and empowered to execute and deliver,
on behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and
other instruments, and to do or accomplish all other acts or things necessary or appropriate to
effect the termination and replacement of the Servicer (in the case of a termination pursuant to
Section 8.2 or Section 8.3, to the extent of the rights so terminated).

          (b) Upon termination of the Servicer pursuant to Section 8.1, Section 8.2 or
Section 8.3, the predecessor Servicer will cooperate with the successor

25

 

Servicer, the Holding Companies, the Lender, the Administrative Agent, the Collateral Agent
and the Titling Companies in effecting the termination of the responsibilities and rights of the
predecessor Servicer under this Agreement (in the case of a termination pursuant to Section
8.2 or Section 8.3, to the extent of the rights so terminated), including, as soon as
practicable, (i) the transfer to such successor Servicer for administration by it of all cash
amounts relating to the Collateral (or, in the case of a termination pursuant to Section
8.2 or Section 8.3, the applicable portion of the Collateral) that are held by the
predecessor Servicer for deposit, or thereafter will be received with respect to the Collateral (or
such portion thereof, as the case may be) and (ii) the delivery of the related Collateral Lease
Files and the related accounts and records maintained by the Servicer. In no event, however, will
the Servicer be obligated to provide or license its proprietary servicing procedures, processes,
models, software or other applications to any successor Servicer or any third party. All
reasonable costs and expenses (including attorneys’ fees) incurred by the successor Servicer in
connection with amending this Agreement or any applicable Servicing Supplement to reflect such
succession as Servicer pursuant to this ARTICLE VIII will be paid by the predecessor
Servicer upon presentation of reasonable documentation of such costs and expenses.

          (c) If the Servicer is terminated pursuant to Section 8.1, Section 8.2 or
Section 8.3, it will continue to perform its functions as Servicer under this Agreement until
the date specified in the notice of termination. If the Servicer resigns pursuant to Section
3.6, it will continue to perform its functions as Servicer under this Agreement until the later
of (i) the date 45 days from the delivery to the Administrative Agent, the Lender, the Collateral
Agent, each Exchange Noteholder and each Holder of a Collateral Specified Interest Certificate of
notice of such resignation in accordance with this Agreement and (ii) the date upon which the
Servicer is legally unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel. If the Servicer resigns or is terminated under this Agreement,
the Administrative Agent (so long as the Credit and Security Agreement is in effect) and,
thereafter, the Holders of the Collateral Specified Interest Certificates, will (i) in the case of
the Administrative Agent, provide notice of such termination or resignation to the Holders of the
Collateral Specified Interest Certificates and the Collateral Agent and (ii) as promptly as
possible, appoint an established institution having a net worth of not less than $50,000,000 whose
regular business includes the servicing of automotive leases and the related leased vehicles, as
the successor to the Servicer under this Agreement (in the case of a termination pursuant to
Section 8.2 or Section 8.3, solely to the extent of the rights so terminated).
Such successor will accept its appointment by (i) entering into a Servicing Agreement with the
Holders of the Collateral Specified Interest Certificates, the Lender and the Collateral Agent
having substantially the same provisions as the provisions of this Agreement applicable to the
Servicer (as modified, to the extent applicable, by any

26

 

related Servicing Supplement), in a form acceptable to the Holders of the Collateral Specified
Interest Certificates, the Lender, the Collateral Agent and, in the case of a termination pursuant
to Section 8.3, the Exchange Noteholder of the related Exchange Note) and (ii) delivering a
copy of such Servicing Agreement to the parties to such agreement, the Administrative Agent and, if
applicable, the Exchange Noteholder of any related Outstanding Exchange Note.

          (d) If no Person has accepted its appointment as successor Servicer when the predecessor
Servicer ceases to act as Servicer in accordance with this Section 8.4, the Administrative
Agent will appoint, or petition a court of competent jurisdiction to appoint, an established
institution having a net worth of not less than $50,000,000 whose regular business includes the
servicing of automotive leases and the related leased vehicles, as successor to the Servicer under
this Agreement and any applicable Servicing Supplement.

          (e) Upon its acceptance of its appointment as successor Servicer, the successor Servicer will
be the successor in all respects to the predecessor Servicer, and will be subject to all of the
responsibilities, duties, and liabilities following such successor Servicer’s appointment placed on
the predecessor Servicer relating to such predecessor Servicer’s performance of its duties as
Servicer (in the case of a termination pursuant to Section 8.2 or Section 8.3, to
the extent of the rights so terminated).

          (f) In connection with any appointment of a successor Servicer, the Administrative Agent (so
long as the Credit and Security Agreement is in effect) and, thereafter, the Holders of the
Collateral Specified Interest Certificates, may make such arrangements for the compensation of such
successor Servicer out of Collections and other property constituting a part of the Collateral (but
solely to the extent of the Collateral relating to the rights so terminated) as it and such
successor Servicer may agree; provided that no such compensation will be in excess of the
amount paid to the predecessor Servicer under this Agreement. The Administrative Agent (so long as
the Credit and Security Agreement is in effect) and, thereafter, the Holders of the Collateral
Specified Interest Certificates and the predecessor Servicer will take such action, consistent with
this Agreement, as will be necessary to effectuate any such succession.

          Section 8.5 Waiver of Servicer Event of Default. The Person(s) entitled to remove the
Servicer pursuant to Section 8.1, Section 8.2 or Section 8.3 may waive any
related Servicer Event of Default except failure to make required deposits or payments from any of
the applicable bank accounts, as the case may be, and its consequences. Upon any such waiver, the
applicable Servicer Event of Default will cease to exist, and will be deemed to have been remedied
for every

27

 

purpose of this Agreement. No such waiver will extend to any subsequent or other event or impair
any right consequent thereon.

          Section 8.6 Non-Solicitation of Dealers and Lessees. The Servicer and any successor
thereto (other than Ford Credit or its Affiliates), by accepting the rights and obligations under
this Agreement and under any Servicing Supplement agrees that it will not, and will not cause any
of its Affiliates, or any agent of itself or any of its Affiliates, to engage in any targeted
solicitation of:

          (i) the Lessees under any of the Collateral Leases for the purpose of
refinancing any such Collateral Leases in whole or in part or otherwise causing
prepayment under any such Collateral Lease (it being agreed and understood by all
of the parties that the foregoing will not prohibit Dealers from soliciting
customers (including Lessees) in the ordinary course of business); or

          (ii) any Dealer for the purpose of engaging in the sale or lease of vehicles
other than vehicles manufactured by Ford Motor Company and its Affiliates.

All rights and benefits relating to solicitation of any Lessees and the attendant rights, title and
interest in and to the list of such Lessees and data relating to their Collateral Leases will run
to the benefit of Ford Motor Company and each of its Affiliates, which are designated as
third-party beneficiaries of this Agreement, solely for purposes of this Section 8.6.

ARTICLE IX

REPORTING

          Section 9.1 Monthly Revolving Facility Pool Reports. Each month, the Servicer will, if so
requested by the Lender, the Collateral Agent, the Administrative Agent or the Holders of the
Collateral Specified Interest Certificates, deliver to such Persons a servicing report (the
“Monthly Revolving Facility Pool Report”), in substantially the form of Exhibit D.

          Section 9.2 Monthly Reference Pool Reports. Except as otherwise provided in the related
Servicing Supplement, each month, the Servicer will deliver to the Lender, the Collateral Agent,
the Administrative Agent, each Rating Agency, the related Exchange Noteholder and any entities
listed in the related Servicing Supplement a servicing report (the “Monthly Exchange Note
Report”) in substantially the form of Exhibit E (or in such other form as may be provided in
the related Servicing Supplement).

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          Section 9.3 Annual Statement as to Compliance. The Servicer will deliver to the related
Exchange Noteholder, any indenture trustee involved in a debt offering secured by the related
Exchange Note and each Rating Agency on or before April 30 of each year, beginning April 30, 2008,
an Officer’s Certificate stating that (i) a review of the activities of the Servicer during the
preceding calendar year and of its performance under this Agreement has been made under such
officers’ supervision and (ii) to such officers’ knowledge, based on such review, the Servicer has
fulfilled all its obligations under this Agreement throughout such year in all material respects,
or, if there has been a default in the fulfillment of any such obligation in any material respect
and such default is continuing, specifying each such default known to such officers and the nature
and status of such default.

          Section 9.4 Annual Statement Regarding Maintenance of Insurance Policies. The Servicer
will, if so requested by any Titling Company, any Holder of a Collateral Specified Interest
Certificate, the Lender, the Administrative Agent, the Collateral Agent or any Exchange Noteholder,
deliver to such Person, on or before April 30th of each year, an Officer’s Certificate
stating the amount and type of insurance provided under each insurance policy maintained with
respect to the Collateral Leases and Collateral Leased Vehicles pursuant to Section 3.7.

          Section 9.5 Annual Independent Certified Public Accountants’ Report. In the event that
debt obligations secured by an Exchange Note are issued by the related Exchange Noteholder, the
Servicer will either:

          (a) cause a firm of nationally recognized Independent certified public accountants to deliver
to the related Exchange Noteholder and any indenture trustee involved in a debt offering secured by
the related Exchange Note on or before April 30 of each year, beginning April 30, 2008, a report
with respect to the preceding calendar year addressed to the board of directors of the Servicer,
the related Exchange Noteholder and to any owner trustee, indenture trustee and trust involved with
respect to such debt offering, stating that an audit (i) was made in accordance with generally
accepted auditing standards that included tests relating to automotive leases serviced for others
in accordance with the requirements of the Uniform Single Attestation Program for Mortgage Bankers
or any successor program (the “Program”), to the extent the procedures in such Program are
applicable to the servicing obligations set forth in this Agreement and the related Servicing
Supplement and (ii) except as described in the report, disclosed no exceptions or errors in the
records relating to motor vehicle leases serviced for others that such firm is required to report
under the Program; or

          (b) deliver to the related Exchange Noteholder and any indenture trustee involved in a debt
offering secured by the related Exchange Note on or before April 30 of each year, beginning April
30, 2008, a copy of the report, assessing

29

 

compliance with the minimum servicing criteria during the preceding calendar year for public
transactions involving retail automotive leases sponsored by Ford Credit, including disclosure of
any identified material instance of non-compliance and a copy of the attestation report of the
registered public accountants on such assessment.

          Section 9.6 Other Notices.

          (a) Notice of Merger or Consolidation of, or Assumption of the Obligations of,
Servicer. The Servicer will notify each Titling Company, each Holder of a Collateral Specified
Interest Certificate, the Lender, the Administrative Agent, the Collateral Agent, each Rating
Agency and each Exchange Noteholder of any merger, consolidation or succession pursuant to
Section 3.4 (other than in the case of a corporate reorganization involving only Ford
Credit and/or one or more of its Affiliates) within 15 Business Days after any such event.

          (b) Notice of Third Party Claims. The Servicer will notify each Titling Company, each
Holder of a Collateral Specified Interest Certificate, the Lender, the Administrative Agent, the
Collateral Agent, each Rating Agency and each Exchange Noteholder within 15 Business Days following
the date on which an Authorized Officer of the Servicer becomes aware of a claim by a third party
with respect to any Collateral Asset, which claim would reasonably be expected to have a material
adverse effect on any Titling Company, any Holder of a Collateral Specified Interest Certificate,
the Lender, the Administrative Agent, the Collateral Agent, any Exchange Noteholder or any trust
established by an Exchange Noteholder.

          (c) Tax Reporting. To the extent required by law, the Servicer will deliver to each
Exchange Noteholder information for the preparation of the Exchange Noteholder’s U.S. federal
income tax returns or, if applicable, the holders of debt obligations issued by any Exchange
Noteholder and secured by an Exchange Note.

          (d) Updating List of Authorized Persons. The Servicer may from time to time designate
the individuals who are authorized to act as “Authorized Persons” with respect to the Servicer
pursuant to an Officer’s Certificate distributed to the Administrative Agent, the Collateral Agent,
the Lender, the Exchange Noteholders, any indenture trustee involved in a debt offering secured by
the related Exchange Note, the Titling Companies, the Titling Company Administrators and the
Holding Companies or posted on Intralinks, access to which has been provided to all applicable
parties.

30

 

ARTICLE X

MISCELLANEOUS

          Section 10.1 Amendments.

          (a) This Agreement and any supplement may be amended by the Holding Companies, the Lender, the
Collateral Agent and the Servicer with (x) prior notice to any rating agency rating any debt
obligations that are secured by an Outstanding Exchange Note and (y) the consent of any indenture
trustee and owner trustee involved in a debt obligation secured by an Outstanding Exchange Note (to
the extent that their respective rights or obligations may be adversely affected by such amendment,
which consent will not be unreasonably withheld, delayed or conditioned), but without the consent
of any of the Exchange Noteholders for the purposes of (i) curing any ambiguity or correcting or
supplementing any provisions in this Agreement inconsistent with any other provision of this
Agreement or (ii) adding any provisions to or changing in any manner or eliminating any of the
provisions in this Agreement, subject to the following conditions:

          (i) the Servicer or the Holding Companies deliver an Officer’s Certificate to
the Administrative Agent to the effect that such amendment will not adversely
affect in any material respect the interest of any Exchange Noteholder; and

          (ii) the Servicer or the Holding Companies deliver an Opinion of Counsel to
the Administrative Agent to the effect that such amendment will not cause any
Titling Company to be classified as an association or publicly traded partnership
taxable as a corporation for U.S. federal income tax purposes.

          (b) This Agreement and any supplement also may be amended by the Holding Companies, the
Lender, the Collateral Agent and the Servicer for the purpose of adding any provisions to or
changing in any manner or eliminating any of the provisions of this Agreement, with (x) prior
notice to any rating agency rating any debt obligations that are secured by an Outstanding Exchange
Note and with (y) the consent of (i) each Exchange Noteholder, to the extent that its rights or
obligations would be adversely affected by such amendment (which consent will not be unreasonably
withheld, delayed or conditioned) and (ii) any indenture trustee and owner trustee involved in a
debt obligation secured by an Outstanding Exchange Note, to the extent that their respective rights
and obligations would be adversely affected by such amendment (which consent will not be
unreasonably withheld, delayed or conditioned).

31

 

          (c) Promptly upon the execution of any such amendment, (i) the Servicer will send a copy of
such amendment to the Exchange Noteholders and any rating agency rating any debt obligations that
are secured by an Outstanding Exchange Note and any indenture trustee and owner trustee involved in
a debt obligation secured by an Outstanding Exchange Note.

          (d) It is not necessary for the consent of the Exchange Noteholders pursuant to this
Section 10.1 to approve the particular form of any proposed amendment or consent, but it
will be sufficient if such consent approves the substance thereof.

          Section 10.2 No Legal Title to Collateral Assets. The Servicer will not have legal title
to any Collateral Assets. Legal title to the Collateral Assets will remain with the applicable
Titling Company. The Holders of the Collateral Specified Interest Certificates will be entitled to
receive distributions with respect to their interest therein only in accordance with this
Agreement, the Credit and Security Agreement and the applicable Titling Company Agreement.
However, if the Holders of the Collateral Specified Interest Certificates direct the related
Titling Company (directly or through its Titling Company Trustee/Registrar or Titling Company
Administrator) to deliver the Collateral Assets held by such Titling Company to or to the order of
such Holders pursuant to the applicable Titling Company Agreement, the Servicer will assist the
applicable Titling Company and its Titling Company Trustee/Registrar in identifying and delivering
the applicable Collateral Assets. Any such direction will be subject to the Credit and Security
Agreement.

          Section 10.3 Notices. Unless otherwise specified in this Agreement, all notices, requests,
demands, consents, waivers or other communications to or from the parties to this Agreement will be
in writing. Notices, requests, demands, consents and other communications will be deemed to have
been given and made, (i) upon delivery or, in the case of a letter mailed via registered first
class mail, postage prepaid, 3 days after deposit in the mail; (ii) in the case of a facsimile,
when receipt is confirmed by telephone or by reply email or reply facsimile from the recipient;
(iii) in the case of an email, when receipt is confirmed by telephone or by reply email from the
recipient; and (iv) in the case of an electronic posting to a password-protected website, upon
printed confirmation of the recipient’s access to such password-protected website, or when
notification of such electronic posting is confirmed in accordance with clauses (i) through
(iii) above. Unless otherwise specified in this Agreement, any such notice, request, demand,
consent or other communication will be delivered or addressed as set forth on Schedule I or
at such other address or facsimile number as any party may designate by notice to the other
parties.

          Section 10.4 Third-Party Beneficiaries. This Agreement will inure to the benefit of and be
binding upon the parties to this Agreement and their assigns

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(including the Holders of the Collateral Specified Interest Certificates as assignees of the
Holding Companies) and for the benefit of any owner trustee or indenture trustee with respect to
debt obligations issued by an Exchange Noteholder and secured by an Exchange Note or other party
that may be specified in the Servicing Supplements, each of which will be considered to be a
third-party beneficiary of this Agreement. Except as otherwise provided in this Agreement, no
other Person will have any right or obligation under this Agreement.

          Section 10.5 Tax Treatment. The issuance of the Collateral Specified Interest Certificates
and the transfer of such Certificates in connection with such issuance and pursuant to the Basic
Documents is not intended to cause any of the Titling Companies to be classified as an association
or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes.

          Section 10.6 No Recourse. Each Holder by accepting a Collateral Specified Interest
Certificate acknowledges that such Certificate represents the Titling Company Interest in the
Collateral Assets only and does not represent an interest in or obligation of the Servicer, Ford
Credit, any Holding Company, any other Holder or any of their respective Affiliates (other than the
related Titling Company itself, limited as described in this sentence), and no recourse may be had
against such parties or their assets, except as may be set forth in this Agreement, the related
Titling Company Agreement or such Certificate.

          Section 10.7 No Petition. The Servicer, the Collateral Agent and each Holding Company as
Holder of a Collateral Specified Interest Certificate covenants that for a period of one year and
one day after payment in full of all Exchange Notes and all distributions to all Holders of
Certificates and all holders of any other securities 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, 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 this Agreement or any of the other
Basic Documents.

          Section 10.8 GOVERNING LAW; SUBMISSION TO JURISDICTION.

          (a) THIS AGREEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

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          (b) Each party to this Agreement 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 Agreement
or the transactions contemplated by this Agreement or by the other Basic Documents. Each party to
this Agreement 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 10.9 WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT 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 AGREEMENT OR ANY OTHER BASIC DOCUMENT OR THE
TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY SUCH OTHER BASIC DOCUMENT.

          Section 10.10 Severability. If any one or more of the covenants, agreements, provisions or
terms of this Agreement is held invalid, illegal or unenforceable, then such covenants, agreements,
provisions or terms will be deemed severable from the remaining covenants, agreements, provisions
or terms of this Agreement and will in no way affect the validity, legality or enforceability of
the other provisions of this Agreement.

          Section 10.11 Counterparts. This Agreement 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 10.12 Headings. The various headings in this Agreement are included for
convenience only and will not affect the meaning or interpretation of any provision of this
Agreement.

          Section 10.13 Further Assurances. The Servicer agrees to do and perform any and all acts
and to execute any and all further instruments required or reasonably requested by the other
parties or by the Holders of the Collateral Specified Interest Certificates to more fully effect
the purposes of this Agreement, including the execution of any financing statements or continuation
statements relating to the Trust Estate for filing under the provisions of the UCC of any
applicable jurisdiction.

          Section 10.14 Agent for Service. So long as Ford Credit remains the Servicer, the agent
for service of the Servicer and each of the Titling Companies in

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          respect of this Agreement will be the person holding the office of the Corporate Secretary of the
Servicer at:

Ford Motor Credit Company

World Headquarters

One American Road, Suite 2411

Dearborn, Michigan 48126

[SIGNATURE PAGE FOLLOWS]

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          Executed:

	 	 	 	 	 
	 	FORD MOTOR CREDIT COMPANY,

as Servicer with respect to the

Collateral Specified Interests and as Lender

 	 
	 	By:  	/s/ David M. Brandi
 	 
	 	 	Name:  	David M. Brandi 	 
	 	 	Title:  	Assistant Treasurer 	 
	 
	 	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:  	/s/ David M. Brandi
 	 
	 	 	Name:  	David M. Brandi 	 
	 	 	Title:  	President 	 
	 
	 	CAB WEST 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:  	/s/ Q. Gwynn Lam
 	 
	 	 	Name:  	Q. Gwynn Lam 	 
	 	 	Title:  	Assistant Secretary 	 
	 

[Signature Page to Servicing Agreement Page 1 of 2]

 

 

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

as Collateral Agent

 	 
	 	By:  	/s/ Melissa A. Rosal
 	 
	 	 	Name:  	Melissa A. Rosal 	 
	 	 	Title:  	Vice President 	 
	 

	 	 	 	 	 

	Agreed and Acknowledged:
	 
	 	 	 	 
	U.S. BANK NATIONAL ASSOCIATION,	 	 
	as Titling Company Registrar with	 	 
	Respect to each of the Titling Companies,	 	 
	on behalf of the Titling Companies	 	 
	 
	 	 	 	 
	By:

	 	/s/ Melissa A. Rosal	 	 
	 

	 	 	 	 
	 

	 	Name: Melissa A. Rosal	 	 
	 

	 	Title: Vice President	 	 

[Signature Page to Servicing Agreement Page 2 of 2]

 

 

EXHIBIT A

(FORM OF COLLATERAL SPECIFIED INTEREST CERTIFICATE]

[NAME OF TITLTNG COMPANY)

COLLATERAL SPECIFIED INTEREST CERTIFICATE

No. [ ]

evidencing the entire limited liability company interest In the Collateral Specified Assets.

(This Certificate does not represent an interest in or obligation of Ford Motor Credit Company,
U.S. Bank National Association or any of their respective affiliates, to the extent described
below.).

(This Certificate evidences an interest in [NAME OF TITLING COMPANY) and will be a security for
purpose of Article 8 of the Uniform Commercial Code.)

     THIS CERTIFIES THAT [ ] is the registered owner of a non-assesaable, fully-paid, 100?% limited
liability company interest in the Collateral Specified Assets of [NAME OF TITLING COMPANY] (the
“Company”)

     The Company is a Delaware limited liability company governed by the Amended sad Restated
Limited Liability Company Agreement, dated as of November 1, 2004 (the “Titling Company Agreement”)
among [NAME OF HOLDING COMPANY] (the “Holding Company”), as Member, Ford Motor Credit Company, as Titling Company Administrator (in such
capacity, the “Titling Company Agreement”) and U.S. Bank National Association as Titling
Company Registrar (in such capacity. the “Titling Company Registrar”).

     This Certificate is one of a duly authorized Series of Certificates. This Collateral Specified
Interest Certificate is issued under and is subject to the Titling Company Agreement and to the
Amended and Restated Limited Liability Company Agreement, dated as of November 1, 2004 (the
“Holding Company Agent”) among Ford Motor Credit Company, as Member, as Servitor with
respect to the Collateral Specified Interest and as Administrator with respect to the Collateral
Series of the Holding Company and the Holding Company, acting with respect to Its Series of limited
liability company interests designated is the “Collateral Seder”. Capitalized terms used but not
donned in this Certificate are defined in the Titling Company Agreement or, If not defied is the
Titling Company Agreement are defined in me Holding Company Agreement.

     Any rights of the Holder of this Collateral Specified Interest Certificate arc limited to the
related Specified Assets and the related Specified Interest (and will include the right to receive
or direct the application of all Collections on the related Specified Assets pursuant to Section
4.3(c)(iii) of the Titling Company Agreement). If an Insolvency Event occurs with respect to the
Company, any claim that the Holder of this Certificate may seek to enforce against the Company or
the Specified Assets allocated to any Specified Interest of the Company other than the Specified
Interest represented by this Collateral Specified Interest Certificate will be

A-1

 

subordinated to the payment in full, including post petition interest, of the claims of the
holders of any Securities related to the Specified Assets allocated to such other Specified
Interests of the Company.

     The Holder of this Collateral Specified Interest Certificate, by acceptance of this Collateral
Specified Interest Certificate, covenants that for a period of one year and we day after payment in
full of all distributions to all Holders and holders of Securities pursuant to the Titling Company
Agreement nod the related Certificates or Securities, as the case may be, it will not institute
against, or join any Person In instituting against the Holding Company or the Company any
bankruptcy, reorganization, arrangement, insolvency or liquidation proceeding, or other proceeding,
under the laws of the United States or any state of the United States.

     This Collateral Specified Interest Certificate may be transferred only do accordance with the
Titling Company Agreement.

     THIS COLLATERAL SPECIFIED INTEREST CERTIFICATE WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS
OF TAE STATE OF DELAWARE, BOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER WILL BE DETERMINED IN ACCORDANCE WITS SUCH LAWS.

     Unless Ws Collateral Specified Interest Certificate Is executed by an Authorized Officer of
the Titling Company Registrar, this Collateral Specified Interest Certificate will not entitle the
Holder thereof to any benefit under the Titling Company Agreement or be valid for any purpose.

A-2

 

     IN WITNESS WHEREOF, the Titling Company Registrar, on behalf, of the Company and not In its
individual capacity, has caused this Collateral Specified Interest Certificate to be duly executed.

	 	 	 	 	 
	 	[NAME OF TITLING COMPANY,

 	 
	 	By.  	U.S. BANK NATIONAL
 	 
	 	 	ASSOCIATION, not in its 	 
	 	 	individual capacity but solely as Titling Company Registrar 	 
	 
	 	 	 
	Dated: [          ], 2005 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-3

 

     FOR VALUE RECEIVED, the undersigned transfers end assigns unto _______________ the within
Collateral Specified Interest Certificate, and all rights thereunder, irrevocably commuting and
appointing ___________ as attorney to transfer said Collateral Specified Interest Certificate on
the books of the Wing Company Registrar, with f WI power of substitution in the premises.

	 	 	 	 	 
	 	 	 
	Dated: [          ], 2005 	By  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-4

 

EXHIBIT B

(FORM OF COLLATERAL SPECIFIED INTEREST CERTIFICATE]

[NAME OF TITLTNG COMPANY)

COLLATERAL SPECIFIED INTEREST CERTIFICATE

			
	To:	 	Ford Motor Credit Company, as Titling Company Administrator of [NAME
OF TITLING COMPANY] (the “Company”).

			
	Re:	 	Designate of Collateral Series

			
	cc:	 	U.S. Bank National Association, as Titling Company Registrar

     Reference Is made to the Amended and Restated Limited Liability Company Agreement, dated as of
November 19, 2004 (the “Titling Company Agreement mw ), among [NAME OF HOLDING COMPANY] as Member,
Ford Motor Credit Company, as Titling Company Administrator (in such capacity, the “Titling
Company Administrator”), and U.S. Beak National Association, a national banking association, as
Titling Company Registrar (in such capacity the “Titling Company Registrar”). Capitalized
terms used bad not defined in this Titling Company Specification Notice am defined in the Titling
Company Agreement, which also contains rules as to usage that are applicable herein.

     1. Pursuant to Section 4.1(a) of the Titling Company Agreement, you are directed to designate
a Specified Interest of the Company, to be known as the “Collateral Specified Interest” and to
issue a Series of Certificates, to be known as the “Collateral Specified Interest Certificate,”
substantially is the form of Exhibit A, representing the entire limited liability company interest
in the Specified Assets allocated from time to time to such Specified Interest and listed in the
Schedule of Collateral Assets.

     2. The Collateral Specified Interest will be a separate series of the Company within the
meaning of Section 18-215(a) of the Act

     3. Pursuant to Section 4.3(b)(iv) of the Titling Company Agreement, Ford Motor Credit Company
is designated as the registered Solder of the mdse Series relating to the Collateral Specified
Interest as of the Collate-4 Series Issue Date, and you are directed to cause the Company to
execute and deliver to (NAME OF HOLDING COMPANY], or to Its order,-j3 of the Collateral Series
Issue Date, a single Certificate, designated as Collateral Certificate 14o. 1, which will represent
the entire limited liability company Interest in the Specified Assets allocated to the Collateral
Specified Interest at any time.

     4. The Collateral Specified Interest will be a Revolving Specified Interest.

     5. The Collateral Specified Interest Certificate will be issued as a single Class.

B-1

 

     6. Pursuant to Section 4.3(b)(v) of the Titling Company Agreement, the Series Cutoff
Date fur the Collateral Specified Interest will be [July 1],.2005.

     7. [Pursuant to Section 4.3(b)(vii) of the Titling Company Agreement, Titling Company
Notes may be issued with respect to the Collateral Specified Interest.]

     8. Pursuant to Section 4.3(c) of the Tiding Company Agreement, the Holder of this
Certificate (together with the Holders of other Certificates is the Collateral Series) has certain
rights with rap=t to the Collateral Specified Interest, Including the right to receive or direct
the application of all Collections on the related Specified Assets, which Collections will be
assets of such Holders.

[SIGNATURE PAGE FOLLOWS]

B-2

 

     IN WITNESS WHEREOF, the Member has caused this Collateral Titling Company Specified Notice to
be duly executed and delivered by its officer hereunto duly authorized , as of the dare first above
written.

	 	 	 	 	 
	 	FORD MOTOR CREDIT COMPANY,

as Member

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

B-3

 

EXHIBIT C

[LOCATIONS OF 2006-1 LEASE FILES]

MSX International Inc.

1426 Pacific Drive

Auburn Hills, MI 48326

Iron Mountain Records Management

23475 Eickler Street

Hayward, CA

C-1

 

EXHIBIT D

[FORM OF MONTHLY REPORT POOL REPORT]

(On file with Ford Motor Credit Company)

D-1

 

EXHIBIT E

[FORM OF MONTHLY REPORT POOL REPORT]

(On file with Ford Motor Credit Company)

E-1

 

Appendix A

Usage and Definitions

AMENDED AND RESTATED USAGE AND DEFINITIONS

Usage

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

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

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

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

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

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

 

 

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

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

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

Definitions

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

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

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

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

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

          “Affiliate” means, with respect to any Person, any other Person directly or indirectly
controlling, controlled by, or under direct or indirect common control with such Person. For the
purposes of this definition, “control” when used with respect to any Person means the power to
direct the management and policies of such Person, directly or indirectly, whether through the
ownership of voting securities, by contract or otherwise.

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

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

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

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

 

 

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

          “Authorized Person” means:

	 	(i)	 	with respect to the Titling Company Registrar, means any
officer in the Corporate Trust Office of such Person, including any vice
president, assistant vice president, assistant treasurer, assistant secretary
or any other officer of such Person customarily performing functions similar to
those performed by any of the above designated having responsibility for the
administration of the Basic Documents and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject;

	 	(ii)	 	with respect to any Titling Company, has the meaning specified
in the related Titling Company Agreement;

	 	(iii)	 	with respect to the Servicer, the individuals designated from
time to time by the Servicer pursuant to Section 9.6(d) of the
Servicing Agreement;

	 	(iv)	 	with respect to the Titling Company Administrator relating to
any Titling Company, the individuals designated by such Titling Company
Administrator from time to time pursuant to Section 7.12 of the related
Titling Company Agreement;

	 	(v)	 	with respect to the Collateral Agent Administrator, the
individuals designated by the Collateral Agent Administrator from time to time
pursuant to Section 2.5 of the HTD Administration Agreement; and

	 	(vi)	 	with respect to the Administrative Agent means any officer
within the Corporate Trust Office of such Person, including any vice president,
assistant vice president, assistant treasurer, assistant secretary or any other
officer of such Person, customarily performing functions similar to those
performed by any of the above designated having responsibility for the
administration of the Basic Documents and also, with respect to a particular
matter, any other officer to whom such matter is referred because of such
officer’s knowledge of and familiarity with the particular subject.

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

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

 

 

          “Basic Documents” means:

          the Credit and Security Agreement;

          the Servicing Agreement;

          the HTD Administration Agreement;

          the Titling Company Agreements;

          the Holding Company LLC Agreements;

          the HTD LLC Agreement; and

          the License Agreement.

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

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

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

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

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

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

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

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

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

 

 

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

          “Certificate of Title” means a certificate of title of a Leased Vehicle issued in
paper form by the relevant governmental department or agency in the jurisdiction in which the
Leased Vehicle is registered, or a record maintained by such governmental department or agency in
the form of information stored in electronic media. However, if a certificate of title in paper
form or such record stored on electronic media has not been issued or is not being maintained, the
application (or copy thereof) for the certificate of title will constitute the “Certificate of
Title.”

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

          “Closing Date” means July 22, 2005.

          “Code” means the Internal Revenue Code of 1986.

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

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

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

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

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

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

	 	(i)	 	the original of the Collateral Lease (or an electronic copy of
such Collateral Lease that satisfies section 9-105 of the UCC) that is clearly
marked to show the applicable Titling Company as the owner of such Collateral
Lease;

	 	(ii)	 	the original credit application fully executed by the Lessee;

 

 

	 	(iii)	 	the Certificate of Title and all related documents retained on
file by the Servicer evidencing the ownership of the related Collateral Leased
Vehicle; and

	 	(iv)	 	any and all other documents that the Servicer retains on file
relating to the Collateral Lease, or the related Collateral Leased Vehicle or
Lessee.

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

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

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

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

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

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

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

          “Commission” means the Securities and Exchange Commission.

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

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

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

 

 

U.S. Bank National Association

209 South LaSalle Street

Suite 300

Chicago, Illinois 60604

Fax: (312) 325-8905

Telephone: (312) 325-8904

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

	 	(i)	 	the portion of the Exchange Note Interest Payment Amount with
respect to such Exchange Note and the immediately preceding Payment Date that
was not paid on such date; plus

	 	(ii)	 	the product of (A) the Exchange Note Balance as of the first
day of such Interest Period, times (B) the applicable Exchange Note
Interest Rate, times (C) the day count fraction specified in the
related Exchange Note Supplement.

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

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

 

 

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

 

 

	 	(i)	 	in the case of the first Payment Date, the period from and
including the Closing Date to and including the last day of the calendar month
in which the Closing Date occurs; and

	 	(ii)	 	in the case of all other Payment Dates, the calendar month
immediately preceding the calendar month during which such Payment Date occurs.

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

          “IRS” means the Internal Revenue Service.

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

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

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

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

	 	(ii)	 	the Contract Residual Value of the related Leased Vehicle,

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

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

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

                    (ii) Exchange Notes or portions of Exchange Notes to the extent an amount necessary to pay all
or such portion of such Exchange Notes has been deposited with the Administrative Agent in trust
for the Exchange Noteholders of such Exchange Notes on or before such date, provided that if such
Exchange Notes are to be redeemed, notice of

 

 

such redemption has been duly given pursuant to any Exchange Note Supplement or provision for
such notice has been made, satisfactory to the Administrative Agent; and

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

provided that in determining (A) whether the Exchange Noteholders of Exchange Notes evidencing the
requisite Exchange Note Balance have given any request, demand, authorization, direction, notice,
consent, or waiver under any Basic Document, Exchange Notes owned by the Borrowers, the Servicer
and any of their Affiliates will be disregarded and deemed not to be Outstanding and (B) whether
the Administrative Agent is protected in relying on any such request, demand, authorization,
direction, notice, consent or waiver, only Exchange Notes that an Authorized Person of the
Administrative Agent knows to be so owned will be disregarded and deemed not to be Outstanding.
Exchange Notes owned by the Borrowers, the Servicer or any of their Affiliates that have been
pledged in good faith may be regarded as Outstanding if the pledgee establishes to the satisfaction
of the Administrative Agent the pledgee’s right to act with respect to such Exchange Notes and that
the pledgee is not the Borrowers, the Servicer or any of their Affiliates. The indenture trustee
with respect to any debt obligations secured by an Exchange Note will be deemed to have established
its right to act with respect to such Exchange Note.

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

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

	 	(i)	 	direct non-callable obligations of, and obligations fully
guaranteed as to timely payment by, the United States;

	 	(ii)	 	demand deposits, time deposits, certificates of deposit or
bankers’ acceptances of any depository institution or trust company (A)
incorporated under the laws of the United States or any State thereof or any
United States branch of a foreign bank, (B) subject to supervision and
examination by federal or State banking or depository institution authorities
and (C) that at the time of the investment or contractual commitment to invest
therein, the commercial paper or other short-term unsecured debt obligations
(other than such obligations the rating of which is based on the credit of a
Person other than such depository institution or trust company) thereof have
the Required Rating;

 

 

	 	(iii)	 	commercial paper, including asset-backed commercial paper,
having, at the time of the investment or contractual commitment to invest is
made, the Required Rating;

	 	(iv)	 	investments in money market funds having, at the time of the
investment or contractual commitment to invest is made, a rating in the highest
investment grade category from each of S&P and Moody’s (including funds for
which the Administrative Agent or any of its Affiliates is investment manager
or advisor);

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

	 	(vi)	 	any other investment for which the Borrowers or the
Administrator has received confirmation will not result in a downgrade from
each nationally recognized statistical rating organization rating any debt
obligations that are secured by the applicable Exchange Note.

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

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

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

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

	 	(i)	 	the portion of the Revolving Facility Interest Payment Amount
with respect to the immediately preceding Payment Date that was not paid in
such date; and

	 	(ii)	 	the product of (A) the arithmetic mean of (x) the Revolving
Facility Balance as of the open of business on the first day of such Interest
Period and (y) the Revolving Facility Balance as of the close of business on
the last day of such Interest Period, times (B) the Revolving Facility
Interest Rate, times (C) the actual number of days elapsed in such Interest
Period divided by 365 (in the case of an Interest Period falling within a year
that is not a leap year) or 366 (in the case of an Interest Period falling
within a leap year).

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

 

 

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

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

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

	 	(i)	 	one-twelfth of 1%; times

	 	(ii)	 	the aggregate Lease Balance of the Collateral Leases (excluding
Collateral Leases that have been allocated to a Reference Pool) determined as
of the end of the preceding Collection Period.

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

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

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

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

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

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

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

          “Securities Act” means the Securities Act of 1933.

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

 

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

 

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

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

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

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

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

 

 

SCHEDULE I

ADDRESSES FOR NOTICES

     Addresses for notices pursuant to Section 10.3 of the Servicing Agreement:

	 	 	 

	          (i)

	 	In the case of the Servicer:
	 
	 	 
	 

	 	Ford Motor Credit Company
	 

	 	c/o Ford Motor Company
	 

	 	World Headquarters
	 

	 	One American Road, Suite 801 -C 1
	 

	 	Dearborn, Michigan 48126
	 

	 	Attention: Securitization Operations Supervisor
	 

	 	Telephone: (313) 5943495
	 

	 	Facsimile: (313) 3904133
	 
	 	 
	 

	 	with a copy to:
	 
	 	 
	 

	 	Ford Motor Credit Company
	 

	 	One American Road, Suite 241
	 

	 	Dearborn, Michigan 48126
	 

	 	Attention: Corporate Secretary
	 

	 	Telephone: (313) 322-3000
	 

	 	Facsimile: (313)248-7613
	 
	 	 
	          (ii)

	 	In the case of CAB East Holdings,
	 

	 	CAB West Holdings and FCALM Holdings, to such person:
	 
	 	 
	 

	 	c/o Ford Motor Credit Company
	 

	 	     c/o Ford Motor Company
	 

	 	World Headquarters
	 

	 	One American Road, Suite 801-Cl
	 

	 	Dearborn, Michigan 48126
	 

	 	Attention: Ford Credit SPE Management Office
	 

	 	Telephone: (313) 594-3495
	 

	 	Facsimile: (313) 390-4133

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