Document:

EXHIBIT 4.3

 

 

 

SALE AND SERVICING AGREEMENT

among

JOHN DEERE OWNER TRUST 2005

Issuer

JOHN DEERE RECEIVABLES, INC.

Seller

and

JOHN DEERE CAPITAL CORPORATION

Servicer

Dated as of May 15, 2005

 

 

 

 

TABLE OF CONTENTS

 

	
  ARTICLE I

  

  Definitions

  
	
   

  	
   

  
	
  SECTION 1.01
  Definitions

  	
   

  
	
  SECTION 1.02
  Other Definitional Provisions

  	
   

  
	
  SECTION 1.03
  Calculations

  	
   

  
	
   

  	
   

  
	
  ARTICLE II

  

  Conveyance of Receivables

  
	
   

  	
   

  
	
  SECTION 2.01
  Conveyance of Receivables

  	
   

  
	
  SECTION 2.02
  Waiver

  	
   

  
	
   

  	
   

  
	
  ARTICLE III

  

  The Receivables

  
	
   

  	
   

  
	
  SECTION 3.01
  Representations and Warranties of Seller

  	
   

  
	
  SECTION 3.02
  Repurchase by Seller upon Breach

  	
   

  
	
  SECTION 3.03
  Custody of Receivable Files

  	
   

  
	
  SECTION 3.04
  Duties of Servicer as Custodian

  	
   

  
	
  SECTION 3.05
  Instructions; Authority to Act

  	
   

  
	
  SECTION 3.06
  Custodian’s Indemnification

  	
   

  
	
  SECTION 3.07
  Effective Period and Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE IV

  

  Administration and Servicing of Receivables

  
	
   

  	
   

  
	
  SECTION 4.01
  Duties of Servicer

  	
   

  
	
  SECTION 4.02
  Collection of Receivable Payments

  	
   

  
	
  SECTION 4.03
  Realization upon Receivables

  	
   

  
	
  SECTION 4.04
  Physical Damage Insurance

  	
   

  
	
  SECTION 4.05
  Maintenance of Security Interests in Financed Equipment

  	
   

  
	
  SECTION 4.06
  Covenants of Servicer

  	
   

  
	
  SECTION 4.07
  Purchase by Servicer of Receivables upon Breach

  	
   

  
	
  SECTION 4.08
  Servicing Fee

  	
   

  
	
  SECTION 4.09
  Servicer’s Certificate

  	
   

  
	
  SECTION 4.10
  Annual Statement as to Compliance; Notice of Default

  	
   

  
	
  SECTION 4.11
  Annual Independent Certified Public Accountants’ Report

  	
   

  
	
  SECTION 4.12
  Access to Certain Documentation and Information Regarding Receivables

  	
   

  

 

i

 

	
  SECTION 4.13
  Servicer Expenses

  	
   

  
	
  SECTION 4.14 Appointment of Sub-Servicer

  	
   

  
	
   

  	
   

  
	
  ARTICLE V

  

  Distributions; Reserve Account;

  Statements to the Certificateholder and Noteholders

  
	
   

  	
   

  
	
  SECTION 5.01
  Establishment of Trust Accounts

  	
   

  
	
  SECTION 5.02
  Collections

  	
   

  
	
  SECTION 5.03
  Additional Deposits

  	
   

  
	
  SECTION 5.04
  Distributions

  	
   

  
	
  SECTION 5.05 Reserve Account

  	
   

  
	
  SECTION 5.06
  Statements to the Certificateholder and Noteholders

  	
   

  
	
  SECTION 5.07 Net Deposits

  	
   

  
	
   

  	
   

  
	
  ARTICLE VI

  

  The Seller

  
	
   

  	
   

  
	
  SECTION 6.01
  Representations of Seller

  	
   

  
	
  SECTION 6.02
  Corporate Existence

  	
   

  
	
  SECTION 6.03
  Liability of Seller; Indemnities

  	
   

  
	
  SECTION 6.04
  Merger or Consolidation of, or Assumption of the Obligations of, Seller

  	
   

  
	
  SECTION 6.05
  Limitation on Liability of Seller and Others

  	
   

  
	
  SECTION 6.06
  Seller May Own Notes; Retention of the Certificate

  	
   

  
	
  SECTION 6.07
  Right of Seller to Repurchase Receivables

  	
   

  
	
   

  	
   

  
	
  ARTICLE VII

  

  The Servicer

  
	
   

  	
   

  
	
  SECTION 7.01
  Representations of Servicer

  	
   

  
	
  SECTION 7.02
  Indemnities of Servicer

  	
   

  
	
  SECTION 7.03
  Merger or Consolidation of, or Assumption of the Obligations of, Servicer

  	
   

  
	
  SECTION 7.04
  Limitation on Liability of Servicer and Others

  	
   

  
	
  SECTION 7.05
  JDCC Not to Resign as Servicer

  	
   

  
	
  SECTION 7.06
  Servicer to Act as Administrator

  	
   

  
	
   

  	
   

  
	
  ARTICLE VIII

  

  Default

  
	
   

  	
   

  
	
  SECTION 8.01
  Servicer Default

  	
   

  
	
  SECTION 8.02
  Appointment of Successor

  	
   

  
	
  SECTION 8.03
  Notification to Noteholders and the Certificateholder

  	
   

  
	
  SECTION 8.04
  Waiver of Past Defaults

  	
   

  

 

ii

 

	
  ARTICLE IX

  

  Termination

  
	
   

  	
   

  
	
  SECTION 9.01
  Optional Purchase of All Receivables and Termination

  	
   

  
	
   

  	
   

  
	
  ARTICLE X

  

  Miscellaneous Provisions

  
	
   

  	
   

  
	
  SECTION 10.01 Amendment

  	
   

  
	
  SECTION 10.02 Protection of Title to Trust

  	
   

  
	
  SECTION 10.03 Notices

  	
   

  
	
  SECTION 10.04 Assignment

  	
   

  
	
  SECTION 10.05 Limitations on Rights of Others

  	
   

  
	
  SECTION 10.06 Severability

  	
   

  
	
  SECTION 10.07 Separate Counterparts

  	
   

  
	
  SECTION 10.08 Headings

  	
   

  
	
  SECTION 10.09 Governing Law

  	
   

  
	
  SECTION 10.10 Assignment to Indenture Trustee

  	
   

  
	
  SECTION 10.11 Nonpetition Covenants

  	
   

  
	
  SECTION 10.12 Limitation of Liability of Owner Trustee and
  Indenture Trustee

  	
   

  
	
  SECTION 10.13 Additional Securities

  	
   

  

 

SCHEDULES

 

	
  SCHEDULE A

  	
   

  	
  –

  	
   

  	
  Schedule of Receivables

  
	
  SCHEDULE B

  	
   

  	
  –

  	
   

  	
  Location of Receivable Files

  
	
  SCHEDULE C

  	
   

  	
  –

  	
   

  	
  List of Fiscal Months

  
	
  SCHEDULE D

  	
   

  	
  –

  	
   

  	
  Servicer’s Certificate

  
	
  SCHEDULE E

  	
   

  	
  –

  	
   

  	
  Statement to Certificateholder

  
	
  SCHEDULE F

  	
   

  	
  –

  	
   

  	
  Statement to Noteholders

  
	
  SCHEDULE G

  	
   

  	
  –

  	
   

  	
  Payment and Deposit Instructions to
  Indenture Trustee

  

 

iii

 

This
SALE AND SERVICING AGREEMENT dated as of May 15, 2005, among JOHN DEERE
OWNER TRUST 2005, a Delaware statutory trust (the “Issuer”), JOHN DEERE
RECEIVABLES, INC., a Nevada corporation (the “Seller”), and JOHN DEERE CAPITAL
CORPORATION, a Delaware corporation (“JDCC” or the “Servicer”).

 

WHEREAS
the Issuer desires to purchase a portfolio of receivables arising in connection
with agricultural and construction equipment retail installment sale and loan
contracts generated by JDCC in the ordinary course of business;

 

WHEREAS
the Seller has purchased such receivables from JDCC and desires to sell such
receivables to the Issuer; and

 

WHEREAS
JDCC desires to service such receivables.

 

NOW,
THEREFORE, in consideration of the premises and the mutual covenants herein
contained, the parties hereto agree as follows:

 

ARTICLE I

Definitions

 

SECTION 1.01   Definitions.  Whenever used in this Agreement, the
following words and phrases, unless the context otherwise requires, shall have
the following meanings:

 

“Administration
Agreement” means the Administration Agreement dated as of May 15, 2005
among the Trust, JDCC, as Administrator, and The Bank of New York, as indenture
trustee, as the same may be amended and supplemented from time to time.

 

“Administration
Fee” means the fee payable to the Administrator pursuant to Section 3 of
the Administration Agreement.

 

“Administrator”
means the administrator under the Administration Agreement.

 

“Agreement”
means this Sale and Servicing Agreement, as the same may be amended and
supplemented from time to time.

 

“Amount
Financed” with respect to a Receivable means the amount advanced under the
Receivable toward the purchase price of the related Financed Equipment and any
related costs.

 

“Annual
Percentage Rate” or “APR” of a Receivable means the fixed annual rate of
finance charges specified in the related Contract.

 

“Certificate”
means the Certificate (as defined in the Trust Agreement).

 

 

“Certificate
Balance” equals, initially, and, on each day thereafter, equals the initial
Certificate Balance reduced by all amounts allocable to principal previously
distributed to the Certificateholder.

 

“Certificate
Distribution Account” has the meaning assigned to such term in the Trust
Agreement.

 

“Certificateholder”
has the meaning assigned to such term in the Trust Agreement.

 

“Certificate
Monthly Principal Distributable Amount” means (a) zero on any Payment Date
on which the outstanding principal balance of the Notes has not been reduced to
zero after taking into account distributions on such Payment Date and (b) on
each Payment Date on and after the Payment Date on which the outstanding
principal balance of the Notes is reduced to zero, an amount equal to the
Principal Distributable Amount minus the principal payment, if any, on the
Notes on such Payment Date.

 

“Class A-1
Note Final Payment Date” means June 15, 2006.

 

“Class A-1
Note Interest Rate” means a rate per annum equal to 3.396%.

 

“Class A-1
Notes” means the Class A-1 Notes (as defined in the Indenture).

 

“Class A-2
Note Final Payment Date” means December 17, 2007.

 

“Class A-2
Note Interest Rate” means a rate per annum equal to 3.79%.

 

“Class A-2
Notes” means the Class A-2 Notes (as defined in the Indenture).

 

“Class A-3
Note Final Payment Date” means June 15, 2009.

 

“Class A-3
Note Interest Rate” means a rate per annum equal to 3.98%.

 

“Class A-3
Notes” means the Class A-3 Notes (as defined in the Indenture).

 

“Class A-4
Note Final Payment Date” means May 15, 2012.

 

“Class A-4
Note Interest Rate” means a rate per annum equal to 4.16%.

 

“Class A-4
Notes” means the Class A-4 Notes (as defined in the Indenture).

 

“Collection
Account” means the account designated as such, established and maintained pursuant
to Section 5.01.

 

“Collection
Period” means, with respect to the first Payment Date, the period from the
Cut-off Date through the Fiscal Month ending on May 29, 2005 and, with
respect to each subsequent Payment Date, the Fiscal Month ending immediately
preceding such Payment Date.  Any amount
stated “as of the close of business on the last day of a Collection Period”
shall give effect to the following calculations as determined as of the end of
the day on such last day:

 

2

 

(1) all
applications of collections and (2) all distributions to be made on the
following Payment Date.

 

“Contract”
means an agricultural or construction equipment retail installment sale or loan
contract.

 

“Corporate
Trust Office” means the principal office of the Indenture Trustee at which at
any particular time its corporate trust business shall be administered, which
office at date of the execution of this Agreement is located at 101 Barclay
Street, New York, New York 10286, Attention: Asset Backed Finance Unit; or at
such other address as the Indenture Trustee may designate from time to time by
notice to the Noteholders and the Seller, or the principal corporate trust
office of any successor Indenture Trustee (the address of which the successor
Indenture Trustee will notify the Noteholders and the Seller).

 

“Current
Principal Distribution Amount” means, with respect to any Payment Date, an
amount equal to the Note Value at the beginning of the related Collection
Period less the Note Value at the end of that Collection Period.

 

“Cut-off
Date” means May 1, 2005.

 

“Dealer”
means the dealer who sold an item of Financed Equipment securing a Receivable.

 

“Deere”
means Deere & Company, a Delaware corporation, and its successors.

 

“Delivery”
when used with respect to Trust Account Property the perfection and priority in
which is governed by Article 8 of the UCC or the Federal Book-Entry
Regulations means:

 

(a)           with respect to
bankers’ acceptances, commercial paper, negotiable certificates of deposit and
other obligations that constitute “instruments” within the meaning of Section 9-102(47)
of the UCC (other than certificated securities) and are susceptible to physical
delivery, transfer thereof to the Indenture Trustee or its nominee or custodian
by physical delivery to the Indenture Trustee or its nominee or custodian
endorsed to, or registered in the name of, the Indenture Trustee or its nominee
or custodian or endorsed in blank, and such additional or alternative
procedures as may hereafter become appropriate to effect the complete transfer
of ownership of any such Trust Property to the Indenture Trustee or its nominee
or custodian free and clear of any adverse claims, consistent with changes in
applicable law or regulations or the interpretation thereof;

 

(b)           with respect to a “certificated
security” (as defined in Section 8-102(a)(4) of the UCC), transfer
thereof (i) by physical delivery of such certificated security endorsed
to, or registered in the name of, the Indenture Trustee or its nominee or
custodian or endorsed in blank, (ii) by physical delivery of such
certificated security in registered form to a “securities intermediary” (as
defined in Section 8-102(a)(14) of the UCC) acting on behalf of the
Indenture Trustee if the certificated security has been specially endorsed to
the Indenture Trustee by an effective endorsement;

 

3

 

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

 

(d)           with respect to any
item of Trust Account Property that is an uncertificated security under Article 8
of the UCC and that is not governed by clause (c) above, registration on
the books and records of the issuer thereof in the name of the Indenture
Trustee, or by another Person (not a securities intermediary) either becoming
the registered owner of the uncertificated security on behalf of the Indenture
Trustee, or having become the registered owner, acknowledging that it holds for
the Indenture Trustee, or the issuer thereof agreeing that it will comply with
instructions originated by the Indenture Trustee without further consent of the
registered owner thereof;

 

(e)           with respect to a “financial
asset” (as defined in Section 8-102(a)(9) of the UCC) to the extent
not covered by paragraphs (a) through (d) above, if a securities
intermediary (i) indicates by book entry that such financial asset has
been credited to the Indenture Trustee’s “securities account” (as defined in Section 8-501(a) of
the UCC), (ii) receives a financial asset from the Indenture Trustee or
acquires a financial asset for the Indenture Trustee, and in either case,
accepts it for credit to the Indenture Trustee’s securities account, (iii) becomes
obligated under other law, regulation or rule to credit a financial asset
to the Indenture Trustee’s securities account, or (iv) has agreed that it
will comply with “entitlement orders” (as defined in Section 8-102(a)(8) of
the UCC) originated by the Indenture Trustee without further consent by the “entitlement
holder” (as defined in Section 8-102(a)(7) of the UCC); and

 

(f)            in each case of delivery
contemplated herein, the Indenture Trustee shall make appropriate notations on
its records, and shall cause same to be made on the records of its nominees,
indicating that securities are credited to the appropriate Trust Account and
held in trust pursuant to and as provided in this Agreement.

 

4

 

“Depositor”
means the Seller in its capacity as Depositor under the Trust Agreement.

 

“Determination
Date” means, with respect to any Payment Date, the third Business Day prior to
such Payment Date.

 

“Eligible
Deposit Account” means either (a) a segregated trust account with an
Eligible Institution or (b) a segregated trust account with the corporate
trust department of a depository institution organized under the laws of the
United States of America or any State (or any domestic branch of a foreign
bank), having corporate trust powers and acting as trustee for funds deposited
in such account, so long as any of the unsecured debt obligations of such
depository institution shall have a credit rating from each of Moody’s and
Standard & Poor’s in one of its generic rating categories which
signifies investment grade.

 

“Eligible
Institution” means (a) the corporate trust department of the Indenture
Trustee or the Owner Trustee, or (b) a depository institution organized
under the laws of the United States of America or any State (or any domestic
branch of a foreign bank), (1)(i) which has either (A) a long-term
unsecured debt rating of AAA or better by Standard & Poor’s and Aaa or
better by Moody’s or (B) a short-term unsecured debt rating or a
certificate of deposit rating of A-1+ by Standard & Poor’s and P-1 or
better by Moody’s, or any other long-term, short-term or certificate of deposit
rating acceptable to the Rating Agencies and (ii) whose deposits are
insured by the FDIC or (2)(i) the parent of which has a long-term or
short-term unsecured debt rating acceptable to the Rating Agencies and (ii) whose
deposits are insured by the FDIC.  If so
qualified, the Indenture Trustee, the Owner Trustee, U.S. Bank Trust National
Association or The Bank of New York may be considered an Eligible Institution
for the purposes of clause (b) of this definition.

 

“Eligible
Investments” mean book-entry securities, negotiable instruments or securities
represented by instruments in bearer or registered form which evidence:

 

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

 

(b)           demand deposits,
time deposits or certificates of deposit of any depository institution or trust
company incorporated under the laws of the United States of America or any
State (or any domestic branch of a foreign bank) and subject to supervision and
examination by Federal or State banking or depository institution authorities;
provided, however, 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 shall have a credit rating from each of Standard & Poor’s and
Moody’s, in the highest investment category granted thereby;

 

(c)           commercial paper
having, at the time of the investment or contractual commitment to invest
therein, a rating from each of Standard & Poor’s and Moody’s in the
highest investment category granted thereby;

 

5

 

(d)           investments in money
market funds having a rating from each of Standard & Poor’s and Moody’s
in the highest investment category granted thereby (including funds for which
the Indenture Trustee or the Owner Trustee or any of their respective
Affiliates is investment manager or advisor);

 

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

 

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

 

(g)           any other investment
permitted by each of the Rating Agencies in writing; provided, however, that if
an investment would be an Eligible Investment solely by virtue of clause (b),
(c), (d), (e) or (f) and has a remaining maturity of more than 30 days
at the time of its acquisition by the Indenture Trustee, then such investment
shall be an Eligible Investment only if the long-term unsecured debt rating of
the obligor on such investment is at least A-1 from Moody’s and at least A+ by
S&P.

 

“Face
Amount” means with respect to a Receivable as of the close of business on the
last day of a Collection Period, the gross amount of all unpaid installments
scheduled to be paid on each contract, including unearned finance and other
charges.

 

“FDIC”
means the Federal Deposit Insurance Corporation.

 

“Financed
Equipment” means an item of agricultural, construction or forestry equipment,
together with all accessions thereto, which was purchased by an Obligor
pursuant to the terms of the related Contract and securing such Obligor’s
indebtedness under the respective Receivable.

 

“Fiscal
Month” means a fiscal month specified in Schedule C, as may be amended
from time to time by the delivery by the Servicer to the Seller, the Owner
Trustee and the Indenture Trustee of a new Schedule C hereto listing the
fiscal months; provided that the fiscal months on any such new Schedule C
shall have the ranges of number of days generally similar to the ranges of the
number of days in the fiscal months set forth in the original Schedule C
hereto and shall not result in a Collection Period that does not allow the
Servicer a sufficient amount of time to perform the calculations required of it
hereunder in respect of such Collection Period prior to the related
Determination Date.

 

“Indenture”
means the Indenture dated as of May 15, 2005, between the Issuer and the
Indenture Trustee, as the same may be amended and supplemented from time to
time.

 

“Indenture
Trustee” means The Bank of New York solely in its capacity as indenture trustee
under the Indenture and not in its individual capacity, its successors in
interest and any successor indenture trustee under the Indenture.

 

6

 

“Initial
Pool Balance” means the Pool Balance as of the Cut-off Date, which is
$750,114,314.40.

 

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

 

“Investment
Earnings” means, with respect to any Payment Date, the investment earnings (net
of losses and investment expenses) on amounts on deposit in the Trust Accounts
to be deposited into the Collection Account on such Payment Date pursuant to Section 5.01(b).

 

“JDCC”
means John Deere Capital Corporation, a Delaware corporation, and its
successors.

 

“Lien”
means a security interest, lien, charge, pledge, equity or encumbrance of any
kind, other than tax liens, mechanics’ liens and any liens which attach to the
respective Receivable by operation of law as a result of any act or omission by
the related Obligor.

 

“Liquidated
Receivable” means any Receivable liquidated by the Servicer through the sale or
other disposition of the Financed Equipment or which the Servicer has
determined to charge-off without realizing upon the Financed Equipment.

 

“Liquidation
Proceeds” means, with respect to any Liquidated Receivable, the moneys
collected in respect thereof, from whatever source (including the proceeds of
insurance policies with respect to the related Financed Equipment or Obligor
but excluding any amounts from Dealer reserves) on a Liquidated Receivable
during the Fiscal Month in which such Receivable became a Liquidated
Receivable, net of the sum of any amounts expended by the Servicer in
connection with such liquidation and any amounts required by law to be remitted
to the Obligor on such Liquidated Receivable.

 

“Moody’s”
means Moody’s Investors Service, Inc., or its successor.

 

“Note
Distribution Account” means the account designated as such, established and
maintained pursuant to Section 5.01.

 

“Note
Interest Rate” means the per annum interest rate borne by a Note.

 

7

 

“Note
Monthly Principal Distributable Amount” means, for any Payment Date, the
Principal Distributable Amount; provided, that the Note Monthly Principal
Distributable Amount shall not exceed the aggregate outstanding principal
balance of the Notes; provided, further, that on (i) the Class A-1
Note Final Payment Date, the Note Monthly Principal Distributable Amount will
at least equal the outstanding principal balance of the Class A-1 Notes, (ii) the
Class A-2 Note Final Payment Date, the Note Monthly Principal
Distributable Amount will at least equal the outstanding principal balance of
the Class A-2 Notes, (iii) the Class A-3 Note Final Payment
Date, the Note Monthly Principal Distributable Amount will at least equal the
outstanding principal balance of the Class A-3 Notes, and (iv) the Class A-4
Note Final Payment Date, the Note Monthly Principal Distributable Amount will at
least equal the outstanding principal balance of the Class A-4 Notes.

 

“Note
Value” means, with respect to any day, the present value of the unpaid
Scheduled Payments on the Receivables, discounted at an annual rate equal to
6.00%.  For purposes of calculating Note
Value, in the case of a defaulted Receivable: (a) prior to the time at
which such defaulted Receivable becomes a Repossessed Receivable or a 180-day
Receivable, the Scheduled Payments on such Receivable will be computed based on
the amounts that would have been the Scheduled Payments had such default not
occurred; (b) at the earlier of the time at which such defaulted
Receivable becomes a Repossessed Receivable or a 180-day Receivable, the amount
added to the Note Value with respect to such Receivable will be the estimated
realizable value of such Receivable, as determined by the Servicer in
accordance with its normal servicing procedures and (c) after the time
such defaulted Receivable becomes a Liquidated Receivable, and after the
payment of a Purchase Amount in respect of a Purchased Receivable, there shall
be deemed to be no Scheduled Payments due on such Receivable.

 

“Noteholders’
Distributable Amount” means, with respect to any Payment Date, the sum of (a) the
accrued and unpaid interest on the Notes for such Payment Date and (b) the
Note Monthly Principal Distributable Amount.

 

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

 

“Obligor”
on a Receivable means the purchaser or co-purchasers of the Financed Equipment
and any other Person who owes payments under the Receivable.

 

“Officers’
Certificate” means a certificate signed by (a) the chairman of the board,
the president, any vice president, the treasurer or any assistant treasurer and
(b) the secretary or any assistant secretary of the Seller or the
Servicer, as appropriate.

 

“180-day
Receivable”, with respect to any Collection Period, means any Receivable as to
which a Scheduled Payment is 180 days or more past due by the last day of such Collection
Period and which has not become a Liquidated Receivable or a Repossessed
Receivable; provided that a Receivable shall cease to be a 180-day Receivable
if the Servicer subsequently receives payment in full of each Scheduled Payment
that was previously 180 days or more past due on such Receivable.

 

8

 

“Opinion
of Counsel” means one or more written opinions of counsel who may be an
employee of or counsel to the Seller or the Servicer, which counsel shall be
acceptable to the Indenture Trustee, the Owner Trustee or the Rating Agencies,
as applicable.

 

“Owner
Trust Estate” has the meaning assigned to such term in the Trust Agreement.

 

“Owner
Trustee” means U.S. Bank Trust National Association in its capacity as Owner
Trustee under the Trust Agreement, its successors in interest and any successor
owner trustee under the Trust Agreement.

 

“Payment
Date” means the 15th day of each month or, if such day is not a Business Day,
the immediately following Business Day, commencing on June 15, 2005.

 

“Pool
Balance” as of the close of business on the last day of a Collection Period,
means the aggregate Principal Balance of the Receivables (excluding Purchased
Receivables and Liquidated Receivables) less the aggregate Write-Down Amount as
of the last day of such Collection Period.

 

“Pool
Face Amount” as of the close of business on the last day of a Collection
Period, means the aggregate Face Amount of the Receivables (excluding Purchased
Receivables and Liquidated Receivables) less the aggregate Write-Down Amount as
of the last day of such Collection Period.

 

“Principal
Balance” of a Receivable, as of the close of business on the last day of a
Collection Period, means the Amount Financed minus the sum of (i) that
portion of all Scheduled Payments paid on or prior to such day allocable to
principal using the actuarial method, (ii) any payment of the Purchase
Amount with respect to the Receivable purchased by the Servicer or repurchased
by the Seller and allocable to principal, and (iii) any prepayment in full
or any partial prepayments applied to reduce the Principal Balance of the
Receivable.

 

“Principal
Carryover Shortfall” means, with respect to any Payment Date, the excess of (i) the
Principal Distributable Amount for the immediately preceding Payment Date over (ii) the
amount that was actually deposited into the Note Distribution Account and the
Certificate Distribution Account, if applicable, on account of principal on
such immediately preceding Payment Date.

 

“Principal
Distributable Amount” means, with respect to any Payment Date, the sum of (i) the
Current Principal Distribution Amount for such Payment Date and (ii) the
Principal Carryover Shortfall for such Payment Date.

 

“Purchase
Agreement” means the Purchase Agreement dated as of May 15, 2005, between
the Seller and JDCC, as the same may be amended and supplemented from time to
time.

 

“Purchase
Amount” means with respect to a Receivable, the amount, as of the close of
business on the last day of a Collection Period, required to prepay in full the
Receivable under the terms thereof including interest to the last day of such
Collection Period.

 

9

 

“Purchased
Receivable” means a Receivable purchased as of the close of business on the
last day of a Collection Period by the Servicer pursuant to Section 4.07
or repurchased as of such time by the Seller pursuant to Section 3.02 or
6.07.

 

“Rating
Agencies” means Moody’s and Standard & Poor’s.  If no such organization or successor is in
existence, “Rating Agency” shall be a nationally recognized statistical rating
organization or other comparable Person designated by the Seller, notice of
which designation shall be given to the Indenture Trustee, the Owner Trustee
and the Servicer.

 

“Rating
Agency Condition” means, with respect to any action, that each Rating Agency
shall have been given 10 days (or such shorter period that is acceptable to
each Rating Agency) prior notice thereof and that each of the Rating Agencies
shall have notified the Seller, the Servicer, the Owner Trustee and the
Indenture Trustee in writing that such action will not result in a reduction or
withdrawal of the then current rating of the Notes.

 

“Receivable”
means any retail installment sale or loan contract listed on Schedule A
hereto.

 

“Receivable
Files” means the documents specified in Section 3.03.

 

“Recoveries”
means, with respect to any Liquidated Receivable, monies collected in respect
thereof, from whatever source (other than any amounts from Dealer reserves)
after the Fiscal Month in which such Receivable became a Liquidated Receivable,
net of the sum of any amounts expended by the Servicer for the account of the
Obligor and any amounts required by law to be remitted to the Obligor.

 

“Repossessed
Receivable”, with respect to any Collection Period, means any defaulted
Receivable as to which the Financed Equipment securing such defaulted
Receivable has been repossessed by the last day of such Collection Period.

 

“Reserve
Account” means the account designated as such, established and maintained
pursuant to Section 5.01.

 

“Reserve
Account Initial Deposit” means, with respect to the Closing Date, $11,276,629.

 

“Scheduled
Payment” on a Receivable, means the scheduled periodic payment of principal and
interest required to be made by the Obligor.

 

“Seller”
means John Deere Receivables, Inc., a Nevada corporation, and its
successors in interest to the extent permitted hereunder.

 

“Servicer”
means JDCC, as the servicer of the Receivables, and each successor to JDCC (in
the same capacity) pursuant to Section 7.03 or 8.02.

 

“Servicer
Default” means an event specified in Section 8.01.

 

10

 

“Servicer’s
Certificate” means an Officers’ Certificate of the Servicer delivered pursuant
to Section 4.09, substantially in the form of Schedule D.

 

“Servicing
Fee” means the fee payable to the Servicer for services rendered during the
respective Collection Period, determined pursuant to Section 4.08.

 

“Servicing
Fee Rate” means 1.00% per annum.

 

“Specified
Reserve Account Balance” means, except as otherwise provided in the following
paragraph, with respect to any Payment Date, the lesser of (a) $13,156,067,
which is 1.75% of the initial Note Value and (b) the outstanding principal
amount of the Notes immediately preceding such Payment Date less the Note
Monthly Principal Distributable Amount to be deposited in the Note Distribution
Account on such Payment Date; provided, that the percentage in clause (a) of
this definition will be reduced to 1.50% (and shall remain at such reduced
percentage for each Payment Date thereafter) on the first to occur of the
Payment Date in November 2006, May 2007 or November 2007 on
which the Average Delinquency Ratio and the Cumulative Net Loss Ratio applicable
to the Receivables as of such Payment Date are less than the percentages set
forth opposite such Payment Date below:

 

	
  Payment
  Date

   occurring in:

  	
   

  	
  Average Delinquency Ratio

  	
   

  	
  Cumulative Net Loss Ratio

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  November 2006

  	
   

  	
  3.00

  	
  %

  	
  0.35

  	
  %

  
	
  May 2007

  	
   

  	
  4.00

  	
   

  	
  0.55

  	
   

  
	
  November 2007

  	
   

  	
  5.00

  	
   

  	
  0.65

  	
   

  

 

Upon
payment of all interest and principal due on the Notes, the Specified Reserve
Account Balance shall be zero.  The
Specified Reserve Account Balance may be reduced or the definition otherwise
modified without the consent of the Noteholders and the Certificateholder
provided that the Rating Agencies confirm in writing that such reduction or
modification will not result in the reduction or withdrawal of the then current
rating of any class of the Notes and provided, further, the Owner Trustee
obtains an Opinion of Counsel confirming that the reduction or modification
will not change the tax classification of the Notes as indebtedness. The
definitions of certain terms used in the definition of Specified Reserve Account
Balance are set forth below.

 

“Average
Delinquency Ratio” means, as of any Payment Date, the average of the
Delinquency Ratios for the three immediately preceding Collection Periods.

 

“Delinquency Ratio”
for any Collection Period means the ratio, expressed as a percentage of (a) the
amount of all Scheduled Payments in respect of Receivables that are 60 days or
more past due (other than Purchased Receivables and Liquidated Receivables) as
of the end of such Collection Period, determined in accordance with the
Servicer’s normal practices and procedures, to (b) the Pool Balance as of
the last day of such Collection Period.

 

11

 

“Cumulative Net
Loss Ratio” means, for any Payment Date, the ratio, expressed as a percentage,
of (a) the aggregate Realized Losses on the Receivables from the Cut-Off
Date through the last day of the Collection Period immediately preceding such
Payment Date to (b) the Initial Pool Balance.

 

“Realized Losses”
means, for any Collection Period, the sum of (a) in the case of each
Receivable that became a Liquidated Receivable during such Collection Period,
the difference between (i) and (ii), where (i) is the Principal
Balance plus accrued and unpaid interest on such Receivable less the Write-Down
Amount for such Receivable (if such Receivable was a 180-day Receivable or
Repossessed Receivable at the time such Receivable became a Liquidated
Receivable), if any, and (ii) is the Liquidation Proceeds received with
respect to such Receivable during such Collection Period, (b) in the case
of any Receivable that became a 180-day Receivable or Repossessed Receivable
during such Collection Period, the Write-Down Amount, if any, for such
Receivable and (c) in the case of each other 180-day Receivable or
Repossessed Receivable, the amount of the adjustment, if any, to the Write-Down
Amount for such Receivable.

 

“Write-Down Amount”
means, for any Collection Period for any 180-day Receivable or Repossessed
Receivable, the excess of (a) the Principal Balance plus accrued and
unpaid interest of such Receivable as of the last day of the Collection Period
during which such Receivable became a 180-day Receivable or Repossessed
Receivable, as the case may be, over (b) the estimated realizable value of
such Receivable, as determined by the Servicer in accordance with its normal
servicing procedures for the related Collection Period, which amount may be
adjusted to zero by the Servicer in accordance with its normal servicing
procedures if such Receivable has ceased to be a 180-day Receivable as provided
in the definition of “180-day Receivable”.

 

“Standard &
Poor’s” means Standard & Poor’s, a division of The McGraw-Hill
Companies, Inc., or any successor to the business of such division.

 

“Sub-Servicer”
means Deere Credit Services, Inc., a Delaware corporation, and each
successor to Deere Credit Services, Inc. (in the same capacity) pursuant
to Section 4.14.

 

“Total
Distribution Amount” means, for each Payment Date, the sum of the aggregate
collections in respect of Receivables (including Liquidation Proceeds and
Purchase Amounts) received during the related Collection Period, plus
Investment Earnings.

 

“Transfer
Date” means, with respect to any Payment Date, the Business Day preceding such
Payment Date.

 

“Trust”
means the Issuer.

 

12

 

“Trust
Account Property” means the Trust Accounts, all amounts and investments held
from time to time in any Trust Account (whether in the form of deposit
accounts, book-entry securities, uncertificated securities or otherwise),
including the Reserve Account Initial Deposit, and all proceeds of the
foregoing.

 

“Trust
Accounts” has the meaning assigned thereto in Section 5.01.

 

“Trust
Agreement” means the Trust Agreement dated as of May 15, 2005, between the
Seller and the Owner Trustee, as the same may be amended and supplemented from
time to time.

 

“Trust
Officer” means, in the case of the Indenture Trustee, any officer within the
Corporate Trust Office of the Indenture Trustee, including any Vice President,
Assistant Vice President, Secretary, Assistant Secretary or any other officer
of the Indenture Trustee customarily performing functions similar to those
performed by any of the above designated officers and also, with respect to a
particular matter, any other officer to whom such matter is referred because of
such officer’s knowledge of and familiarity with the particular subject and,
with respect to the Owner Trustee, any officer in the Corporate Trust Services
Department of the Owner Trustee with direct responsibility for the
administration of the Trust Agreement and the Basic Documents on behalf of the
Owner Trustee.

 

SECTION 1.02   Other Definitional Provisions.  Capitalized terms used herein and not
otherwise defined herein have the meanings assigned to them in the Indenture.

 

(a)           All
terms defined in this Agreement shall have the defined meanings when used in
any certificate or other document made or delivered pursuant hereto unless
otherwise defined therein.

 

(b)           As
used in this Agreement and in any certificate or other document made or
delivered pursuant hereto or thereto, accounting terms not defined in this
Agreement or in any such certificate or other document, and accounting terms
partly defined in this Agreement or in any such certificate or other document
to the extent not defined, shall have the respective meanings given to them
under generally accepted accounting principles in the United States.  To the extent that the definitions of accounting
terms in this Agreement or in any such certificate or other document are
inconsistent with the meanings of such terms under generally accepted
accounting principles in the United States, the definitions contained in this
Agreement or in any such certificate or other document shall control.

 

(c)           The
words “hereof,” “herein,” “hereunder” and words of similar import when used in
this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement; Section, Schedule and Exhibit references
contained in this Agreement are references to Sections, Schedules and Exhibits
in or to this Agreement unless otherwise specified; and the term “including”
shall mean “including without limitation.”

 

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

 

13

 

SECTION 1.03   Calculations.  For all purposes of this Agreement, interest
in respect of the Class A-1 Notes shall be computed on the basis of a 360-day
year and the actual number of days in the related period of accrual.  Interest in respect of the Class A-1
Notes shall accrue from and including the Closing Date or from and including
the most recent Payment Date to which interest has been paid to but excluding
the current Payment Date.  Interest in
respect of the Class A-2 Notes, the Class A-3 Notes and the Class A-4
Notes shall be computed on the basis of a 360-day year consisting of twelve 30-day
months.  Interest on the Class A-2
Notes, the Class A-3 Notes and the Class A-4 Notes in respect of a
Payment Date will accrue from and including the 15th day of the month preceding
such Payment Date (or the Closing Date in the case of the first Payment Date)
to and including the 14th day of the month of such Payment Date.

 

ARTICLE II

Conveyance of Receivables

 

SECTION 2.01   Conveyance of Receivables.  In consideration of the Issuer’s delivery to
or upon the order of the Seller of $739,392,453.63, the issuance to the Seller
of the Certificate and the waiver, termination and release set forth in 2.02
below, the Seller does hereby sell, transfer, assign, set over and otherwise
convey to the Issuer, without recourse (subject to the obligations herein):

 

(a)           all right, title and
interest of the Seller in and to the Receivables, and all moneys due thereon,
on or after the Cut-off Date;

 

(b)           the interest of the
Seller in the security interests in the Financed Equipment granted by Obligors
pursuant to the Receivables and any other interest of the Seller in the
Financed Equipment;

 

(c)           the interest of the
Seller in any proceeds with respect to the Receivables from claims on any
physical damage, credit life or disability insurance policies covering Financed
Equipment or Obligors;

 

(d)           all right, title and
interest of the Seller in and to the Purchase Agreement, including the right of
the Seller to cause JDCC to repurchase Receivables from the Seller under
certain circumstances; and

 

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

 

14

 

SECTION 2.02   Waiver.  The Issuer hereby waives, releases and
terminates (i) any rights it may have in any equipment (other than the
Financed Equipment) as security for any obligations owing to it under the
Receivables, (ii) any rights it may have in any property as security for
any Receivable other than the rights relating to the related Financed Equipment
and the proceeds thereof and (iii) any rights it may have to apply moneys
received under a receivable that was not sold to the Issuer pursuant to Section 2.01.  Notwithstanding anything to the contrary
contained herein, the foregoing in no way constitutes a waiver, release or
termination of any of the rights of the Issuer with respect to the Financed
Equipment and the rights related to the Financed Equipment.

 

ARTICLE III

The Receivables

 

SECTION 3.01   Representations and Warranties of Seller.  The Seller makes the following
representations and warranties as to the Receivables on which the Issuer is
deemed to have relied in acquiring the Receivables.  Such representations and warranties speak as
of the execution and delivery of this Agreement, but shall survive the sale, transfer
and assignment of the Receivables to the Issuer and the pledge thereof to the
Indenture Trustee pursuant to the Indenture.

 

(a)           Title.  It is the intention of the Seller that the
transfer and assignment herein contemplated constitute a sale of the
Receivables from the Seller to the Issuer and that the beneficial interest in
and title to such Receivables not be part of the debtor’s estate in the event
of the filing of a bankruptcy petition by or against the Seller under any
bankruptcy law.  No Receivable has been
sold, transferred, assigned or pledged by the Seller to any Person other than
the Issuer.  Immediately prior to the
transfer and assignment herein contemplated, the Seller had good and marketable
title to each Receivable, free and clear of all Liens and rights of others and,
immediately upon the transfer thereof, the Issuer shall have good and
marketable title to each such Receivable, free and clear of all Liens and
rights of others; and the transfer has been perfected under the UCC.

 

(b)           All Filings Made.  All filings (including UCC filings) necessary
in any jurisdiction to give the Issuer a first perfected ownership interest in
the Receivables, and to give the Indenture Trustee a first perfected security
interest therein, shall have been made.

 

SECTION 3.02   Repurchase by Seller upon Breach.  The Seller, the Servicer, the Sub-Servicer or
the Owner Trustee, as the case may be, shall inform the other parties to the
Agreement and the Indenture Trustee and JDCC promptly, in writing, upon the
discovery of any breach of the Seller’s representations and warranties made
pursuant to Section 3.01 or JDCC’s representations and warranties made
pursuant to Section 3.02(b) of the Purchase Agreement.  Unless any such breach shall have been cured
by the last day of the second month following the month of the discovery
thereof by the Owner Trustee or receipt by the Owner Trustee of written notice
from the Seller, the Servicer or the Sub-Servicer of such breach, the Seller
shall be

 

15

 

obligated, and, if necessary, the Seller or the Owner Trustee shall
enforce the obligation of JDCC under the Purchase Agreement, to repurchase any
Receivable materially and adversely affected by any such breach as of such last
day (or, at the Seller’s option, the last day of the first month following the
month of the discovery).  In
consideration of the repurchase of the Receivable, the Seller shall remit the
Purchase Amount, in the manner specified in Section 5.03; provided,
however, that the obligation of the Seller to repurchase any Receivable
arising solely as a result of a breach of JDCC’s representations and warranties
pursuant to Section 3.02 (b) of the Purchase Agreement is subject to
the receipt by the Seller of the Purchase Amount from JDCC.  Subject to the provisions of Section 6.03,
the sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the
Noteholders or the Certificateholder with respect to a breach of
representations and warranties pursuant to Section 3.01 and the agreement
contained in this Section shall be to require the Seller to repurchase
Receivables pursuant to this Section, subject to the conditions contained
herein, or to enforce JDCC’s obligation to the Seller to repurchase such
Receivables pursuant to the Purchase Agreement. 
The Owner Trustee shall have no duty to conduct any affirmative
investigation as to the occurrence of any condition requiring the repurchase of
any Receivable pursuant to this Section.

 

SECTION 3.03   Custody of Receivable Files.  To assure uniform quality in servicing the
Receivables and to reduce administrative costs, the Issuer hereby appoints the
Servicer, and the Servicer hereby accepts such appointment, to act as the agent
of the Issuer and the Indenture Trustee as custodian of the following documents
or instruments which are hereby constructively delivered to the Indenture
Trustee, as pledgee of the Issuer with respect to each Receivable:

 

(a)           the original
executed copy of the Receivable;

 

(b)           the original or a
copy of the credit application fully executed by the Obligor;

 

(c)           the original
certificate of title (or a secured party copy thereof), the file stamped copy
of the UCC financing statement or such other documents that the Seller or JDCC
shall keep on file, in accordance with its customary procedures, evidencing the
security interest of Deere & Company or an affiliate of Deere &
Company in the Financed Equipment; and

 

(d)           any and all other
documents that JDCC or the Seller shall keep on file, in accordance with its
customary procedures, relating to a Receivable, an Obligor or Financed
Equipment.

 

SECTION 3.04   Duties of Servicer as Custodian.

 

(a)           Safekeeping.  The Servicer shall hold the Receivable Files
on behalf of the Issuer and maintain such accurate and complete accounts,
records and computer systems pertaining to each Receivable File as shall enable
the Issuer to comply with this Agreement. 
In performing its duties as custodian the Servicer shall act with
reasonable care, using that degree of skill and attention that the Servicer
exercises with respect to the receivable files relating to all comparable
receivables that the Servicer services for itself or others.  The Servicer shall conduct,

 

16

 

or cause to be conducted, periodic audits of
the Receivable Files held by it under this Agreement and of the related
accounts, records and computer systems, in such a manner as shall enable the
Issuer or the Indenture Trustee to verify the accuracy of the Servicer’s record
keeping.  The Servicer shall promptly report
to the Issuer and the Indenture Trustee any failure on its part to hold the
Receivable Files and maintain its accounts, records and computer systems as
herein provided and promptly take appropriate action to remedy any such
failure.  Nothing herein shall be deemed
to require an initial review or any periodic review by the Issuer, the Owner
Trustee or the Indenture Trustee of the Receivable Files.

 

(b)           Maintenance
of and Access to Records.  The
Servicer shall maintain each Receivable File at its office specified in Schedule B
to this Agreement or at such other office as shall be specified to the Issuer
and the Indenture Trustee by written notice not later than 90 days after any
change in location.  The Servicer shall
make available to the Issuer and the Indenture Trustee or their respective duly
authorized representatives, attorneys or auditors a list of locations of the
Receivable Files and the related accounts, records and computer systems
maintained by the Servicer at such times as the Issuer or the Indenture Trustee
shall instruct.

 

(c)           Release
of Documents.  Upon instruction from
the Indenture Trustee, the Servicer shall release any Receivable File to the
Indenture Trustee, the Indenture Trustee’s agent, or the Indenture Trustee’s
designee, as the case may be, at such place or places as the Indenture Trustee
may designate, as soon as practicable.

 

SECTION 3.05   Instructions; Authority to Act.  The Servicer shall be deemed to have received
proper instructions with respect to the Receivable Files upon its receipt of
written instructions signed by a Trust Officer of the Indenture Trustee.

 

SECTION 3.06   Custodian’s Indemnification.  The Servicer as custodian shall indemnify the
Trust, the Owner Trustee and the Indenture Trustee and each of their officers,
directors and agents for any and all liabilities, obligations, losses,
compensatory damages, payments, costs or expenses of any kind whatsoever that
may be imposed on, incurred by or asserted against the Trust, the Owner Trustee
or the Indenture Trustee or any of their officers, directors and agents as the
result of any improper act or omission in any way relating to the maintenance
and custody by the Servicer as custodian of the Receivable Files; provided,
however, that the Servicer shall not be liable to the Trust or the Owner
Trustee for any portion of any such amount resulting from the willful
misfeasance, bad faith or negligence of the Owner Trustee and the Servicer
shall not be liable to the Trust or the Indenture Trustee for any portion of
any such amount resulting from the willful misfeasance, bad faith or negligence
of the Indenture Trustee.

 

SECTION 3.07   Effective Period and Termination.  The Servicer’s appointment as custodian shall
become effective as of the Cut-off Date and shall continue in full force and
effect until terminated pursuant to this Section.  If JDCC shall resign as Servicer in
accordance with the provisions of the Agreement or if all of the rights and
obligations of any Servicer shall have been terminated under Section 8.01,
the appointment of such Servicer as custodian shall be terminated by the
Indenture Trustee or by the Holders of Notes evidencing not less than 25% of
the Outstanding Amount of the Notes or, with the consent of Holders of the
Notes evidencing not less than 25% of the Outstanding Amount of the Notes, by
the Owner Trustee or by the

 

17

 

Certificateholder, in the same manner as the Indenture Trustee or such
Holders may terminate the rights and obligations of the Servicer under Section 8.01.  The Indenture Trustee or, with the consent of
the Indenture Trustee, the Owner Trustee may terminate the Servicer’s
appointment as custodian, with cause, at any time upon written notification to
the Servicer, and without cause upon 30 days’ prior written notification to the
Servicer.  As soon as practicable after
any termination of such appointment, the Servicer shall deliver the Receivable
Files to the Indenture Trustee or the Indenture Trustee’s agent at such place
or places as the Indenture Trustee may reasonably designate.  The Servicer shall pay the fees of any other
Person acting as custodian of the Receivables Files.

 

ARTICLE IV

Administration and Servicing of Receivables

 

SECTION 4.01   Duties of Servicer.  The Servicer, as agent for the Issuer (to the
extent provided herein), shall manage, service, administer and make collections
on the Receivables (other than Purchased Receivables) with reasonable care,
using that degree of skill and attention that the Servicer exercises with
respect to all comparable equipment receivables that it services for itself or
others.  The Servicer’s duties shall
include calculating, billing, collection and posting of all payments,
responding to inquiries of Obligors on such Receivables, investigating
delinquencies, reporting tax information to Obligors, accounting for
collections, and furnishing monthly and annual statements to the Owner Trustee
and the Indenture Trustee with respect to distributions.  Subject to the provisions of Section 4.02,
the Servicer shall follow its customary standards, policies and procedures in
performing its duties as Servicer. 
Without limiting the generality of the foregoing, the Servicer is
authorized and empowered to execute and deliver, on behalf of itself, the Issuer,
the Owner Trustee, the Indenture Trustee, the Certificateholder and the
Noteholders or any of them, any and all instruments of satisfaction or
cancellation, or partial or full release or discharge, and all other comparable
instruments, with respect to such Receivables or to the Financed Equipment
securing such Receivables.  If the
Servicer shall commence a legal proceeding to enforce a Receivable, the Issuer
(in the case of a Receivable other than a Purchased Receivable) shall thereupon
be deemed to have automatically assigned, solely for the purpose of collection,
such Receivable to the Servicer.  If in
any enforcement suit or legal proceeding it shall be held that the Servicer may
not enforce a Receivable on the ground that it shall not be a real party in
interest or a holder entitled to enforce such Receivable, the Owner Trustee
shall, at the Servicer’s expense and direction, take steps to enforce such
Receivable, including bringing suit in its name or the name of the Owner
Trustee, the Indenture Trustee, the Certificateholder or the Noteholders.  The Owner Trustee shall upon the written
request of the Servicer 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.

 

SECTION 4.02   Collection of Receivable Payments.  The Servicer shall make reasonable efforts to
collect all payments called for under the terms and provisions of the
Receivables as and when the same shall become due and shall follow such
collection procedures as it follows with respect to all comparable equipment
receivables that it services for itself or others.  In connection therewith, the Servicer may
grant extensions, rebates or adjustments on a

 

18

 

Receivable in accordance with its customary collection procedures with
respect to all comparable equipment receivables that it services for itself or
others; provided, however, that if the Servicer extends the date for final
payment by the Obligor of any Receivable beyond April 30, 2011, it shall
promptly purchase the Receivable from the Issuer in accordance with the terms
of Section 4.07; provided, further, that the Servicer shall not extend the
final Scheduled Payment for the sole purpose of purchasing the Receivables from
the Issuer.  The Servicer may in its
discretion waive any additional interest above the related APR due on late
Scheduled Payments or any other fees that may be collected in the ordinary course
of servicing a Receivable.  The Servicer
shall not agree to any alteration of the interest rate on any Receivable and
shall not agree to waive the repayment of the Amount Financed, or any portion
thereof, on a Receivable. 
Notwithstanding anything in this Agreement to the contrary, any
Recoveries shall be paid to the Seller and the related Liquidated Receivable
shall be assigned by the Trust to the Seller.

 

SECTION 4.03   Realization upon Receivables.  On behalf of the Issuer, the Servicer shall
use its best efforts, consistent with its customary servicing procedures, to
repossess or otherwise realize upon the Financed Equipment securing any
Receivable as to which the Servicer shall have determined pursuant to customary
servicing procedures that eventual payment in full is unlikely.  The Servicer shall follow such customary and
usual practices and procedures as it shall deem necessary or advisable in its
servicing of comparable equipment receivables, which may include selling the
Financed Equipment at public or private sale. 
The Servicer is hereby authorized to exercise its discretion consistent
with its customary servicing procedures in servicing defaulted Receivables so
as to maximize the net collections of such defaulted Receivables.  The Servicer shall not be liable for any such
exercise of its discretion made in good faith and in accordance with such
servicing procedures.  The foregoing
shall be subject to the provision that, in any case in which the Financed Equipment
shall have suffered damage, consistent with its customary servicing procedures
the Servicer may but shall not be required to expend funds in connection with
the repair or the repossession of such Financed Equipment.

 

SECTION 4.04   Physical Damage Insurance.  The Servicer shall, in accordance with its
customary servicing procedures, require that each Obligor shall have obtained
physical damage insurance covering the Financed Equipment as of the execution
of the Receivable.

 

SECTION 4.05   Maintenance of Security Interests in
Financed Equipment.  The Servicer
shall, in accordance with its customary servicing procedures, take such steps
as are necessary to maintain perfection of the security interest created by
each Receivable in the related Financed Equipment.  The Servicer is hereby authorized to take
such steps as are necessary to re-perfect such security interest on behalf of
the Issuer and the Indenture Trustee in the event of the relocation of the
Financed Equipment or for any other reason.

 

SECTION 4.06   Covenants of Servicer.  The Servicer shall not release the Financed
Equipment securing any Receivable from the security interest granted by such
Receivable in whole or in part except in accordance with Section 4.03
above or in the event of payment in full by the Obligor thereunder, nor shall
the Servicer impair the rights of the Issuer, the Indenture Trustee, the
Certificateholder or the Noteholders in such Receivables, nor shall the
Servicer increase the number of scheduled payments due under a Receivable
except in accordance with the terms thereof or the terms of Section 4.02.

 

19

 

SECTION 4.07   Purchase by Servicer of Receivables upon
Breach.  The Servicer (or the
Sub-Servicer on behalf of the Servicer) or the Owner Trustee shall inform the
other party and the Indenture Trustee, the Seller and JDCC promptly, in
writing, upon the discovery of any breach of Section 4.02, 4.05 or
4.06.  Unless the breach shall have been
cured by the last day of the second month following such discovery (or, at the
Servicer’s election, the last day of the first following month), the Servicer
shall purchase any Receivable materially and adversely affected by such
breach.  If the Servicer takes any action
pursuant to Section 4.02 that impairs the rights of the Issuer, the
Indenture Trustee, the Certificateholder or the Noteholders in any Receivable
or as otherwise provided in Section 4.02, the Servicer shall purchase such
Receivable.  In consideration of the
purchase of any such Receivable pursuant to either of the two preceding
sentences, the Servicer shall remit the Purchase Amount in the manner specified
in Section 5.03.  Subject to Section 7.02,
the sole remedy of the Issuer, the Owner Trustee, the Indenture Trustee, the
Certificateholder or the Noteholders with respect to a breach pursuant to Section 4.02,
4.05 or 4.06 shall be to require the Servicer to purchase Receivables pursuant
to this Section.  The Owner Trustee shall
have no duty to conduct any affirmative investigation as to the occurrence of
any condition requiring the purchase of any Receivable pursuant to this
Section.

 

SECTION 4.08   Servicing Fee.  On each Determination Date, the Servicer
shall be entitled to receive the Servicing Fee in respect of the immediately
preceding Collection Period equal to the product of (a) one twelfth of the
Servicing Fee Rate and (b) the Pool Balance as of the first day of such
preceding Collection Period subject to the order and priority set forth in Section 5.04.  The Servicer shall also be entitled to that
portion of interest due on a Receivable that is in excess of interest at the
related APR and that is due because of a late Scheduled Payment, and other
administrative fees or similar charges allowed by applicable law or the
Receivable with respect to Receivables, collected (from whatever source) on the
Receivables.

 

SECTION 4.09   Servicer’s Certificate.  On each Determination Date, the Servicer
shall deliver to the Owner Trustee, the Indenture Trustee and the Seller, with
a copy to the Rating Agencies, a Servicer’s Certificate containing all
information necessary to make the distributions pursuant to Sections 5.04 and
5.06 for the Collection Period preceding the date of such Servicer’s
Certificate.  Neither the Owner Trustee
nor the Indenture Trustee shall be required to determine, confirm or
recalculate the information contained in the Servicer’s Certificate.  Receivables to be purchased by the Servicer
or to be repurchased by the Seller shall be identified by the Servicer by
account number with respect to such Receivable (as specified in Schedule A).

 

SECTION 4.10   Annual Statement as to Compliance; Notice
of Default.

 

(a)           The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee, on or
before February 28 of each year beginning February 28, 2006, an
Officers’ Certificate stating that (i) a review of the activities of the
Servicer during the 12-month period ending on October 31 of the preceding
year (or, in the case of October 31, 2005, the period from the Closing
Date to October 31, 2005) and of its performance under this Agreement has
been made under such officers’ supervision and (ii) to the best of such
officers’ knowledge, based on such review, the Servicer has fulfilled in all
material respects all its obligations under this Agreement throughout such
period or, if there has been a default in the fulfillment of any such
obligation in any material respect, specifying each such default known to such
officers and the nature and

 

20

 

status thereof.  The Indenture Trustee shall send a copy of
such certificate and the report referred to in Section 4.11 to the Rating
Agencies.  A copy of such certificate and
the report referred to in Section 4.11 may be obtained by the
Certificateholder by a request in writing to the Owner Trustee at its address
in Section 10.03.

 

(b)           The
Servicer shall deliver to the Owner Trustee, the Indenture Trustee and the
Rating Agencies, promptly after having obtained knowledge thereof, but in no
event later than five Business Days thereafter, written notice in an Officers’
Certificate of any event which with the giving of notice or lapse of time, or
both, would become a Servicer Default under Section 8.01(a) or (b).

 

SECTION 4.11   Annual Independent Certified Public
Accountants’ Report.  The Servicer
shall cause a firm of independent certified public accountants, which may also
render other services to the Servicer, the Seller or JDCC, to deliver to the
Owner Trustee and the Indenture Trustee on or before February 28 (or, if
the Trust is required to file a Form 10-K with the Securities and Exchange
Commission with respect to the prior fiscal year, by such earlier date as will
permit the timely filing of the Trust’s Form 10-K) of each year beginning
in 2006, a report addressed to the Board of Directors of the Servicer, the
Owner Trustee and the Indenture Trustee, to the effect that (a) such firm
has examined management’s assertion that with respect to the Receivables the
Servicer has complied for the most recent fiscal year of the Servicer, with the
Servicer’s minimum servicing standards that are based on the Mortgage Banker’s
Association of America’s Uniform Single Attestation Program for Mortgage
Bankers, modified to address the unique characteristics of servicing
agricultural and construction equipment loans; (b) such examination was
conducted in accordance with the attestation standards established by the
American Institute of Certified Public Accountants and included examining, on a
test basis, evidence about the Servicer’s compliance with its minimum servicing
standards; and (c) except as described in the report, management’s
assertion is fairly stated in all material respects.  In lieu of the above-described report, the
Servicer may cause a firm of independent certified public accountants to
deliver to the Owner Trustee and the Indenture Trustee an attestation report
addressed to the Board of Directors of the Servicer, the Owner Trustee and the
Indenture Trustee, that complies with the independent auditors’ attestation
standards of Regulation AB under the Securities Act of 1933, as amended, and
the Securities Exchange Act of 1934, as amended.

 

SECTION 4.12   Access to Certain Documentation and
Information Regarding Receivables. 
The Servicer shall provide to the Certificateholder and Noteholders
access to the Receivable Files in such cases where the Certificateholder or
Noteholders shall be required by applicable statutes or regulations to review
such documentation.  Access shall be
afforded without charge, but only upon reasonable request and during the normal
business hours at the respective offices of the Servicer.  Nothing in this Section shall affect the
obligation of the Servicer to observe any applicable law prohibiting disclosure
of information regarding the Obligors and the failure of the Servicer to
provide access to information as a result of such obligation shall not
constitute a breach of this Section.

 

SECTION 4.13   Servicer Expenses.  The Servicer shall be required to pay all
expenses incurred by it in connection with its activities hereunder, including
fees and disbursements of independent accountants, fees and disbursements
incurred in connection with

 

21

 

collection and enforcement of Receivables (other than amounts incurred
in connection with the liquidation of a Receivable which amounts shall be
netted against the Liquidation Proceeds, if any), taxes imposed on the Servicer
and expenses incurred in connection with distributions and reports to the
Certificateholder and the Noteholders.

 

SECTION 4.14   Appointment of Sub-Servicer.  The Servicer hereby appoints Deere Credit
Services, Inc. as Sub-Servicer and may at any time appoint a successor Sub-Servicer
to perform all or any portion of its obligations as Servicer hereunder;
provided, however, that the Rating Agency Condition shall have been satisfied
in connection with the appointment of a successor Sub-Servicer; provided
further that the Servicer shall remain obligated and be liable to the Issuer,
the Owner Trustee, the Indenture Trustee, the Certificateholder and the
Noteholders for the servicing and administering of the Receivables in
accordance with the provisions hereof without diminution of such obligation and
liability by virtue of the appointment of such Sub-Servicer and to the same
extent and under the same terms and conditions as if the Servicer alone were
servicing and administering the Receivables. 
The fees and expenses of the Sub-Servicer shall be as agreed between the
Servicer and its Sub-Servicer from time to time and none of the Issuer, the
Owner Trustee, the Indenture Trustee, the Certificateholder or the Noteholders
shall have any responsibility therefor.

 

ARTICLE V

 

Distributions;
Reserve Account;

Statements to the Certificateholder and Noteholders

 

SECTION 5.01   Establishment of Trust Accounts.

 

(a)           (i)  The
Servicer, for the benefit of the Noteholders and the Certificateholder, shall
establish and maintain in the name of the Indenture Trustee an Eligible Deposit
Account (the “Collection Account”), bearing a designation clearly indicating
that the funds deposited therein are held for the benefit of the Noteholders
and the Certificateholder.

 

(ii)           The Servicer, for the benefit of the
Noteholders, shall establish and maintain in the name of the Indenture Trustee
an Eligible Deposit Account (the “Note Distribution Account”), bearing a
designation clearly indicating that the funds deposited therein are held for
the benefit of the Noteholders.

 

(iii)          The Servicer, for the benefit of the
Noteholders and the Certificateholder, shall establish and maintain in the name
of the Indenture Trustee an Eligible Deposit Account (the “Reserve Account”),
bearing a designation clearly indicating that the funds deposited therein are
held for the benefit of the Noteholders and the Certificateholder.

 

(b)           Funds
on deposit in the Collection Account, the Note Distribution Account and the
Reserve Account (collectively the “Trust Accounts”) shall be invested by the
Indenture Trustee pursuant to the Servicer’s written instruction in Eligible
Investments selected by the Servicer; provided, however, it is understood and
agreed that the Indenture Trustee shall not be liable for any loss arising from
such investment in Eligible Investments; provided further none of the funds
deposited in the Trust Accounts shall be invested in an Eligible Investment or

 

22

 

Eligible Investments issued by the Servicer
or the Seller for a period of 30 days following the Closing Date.  All such Eligible Investments shall be held
by the Indenture Trustee for the benefit of the Noteholders and the
Certificateholder or the Noteholders, as applicable; provided, however, that on
each Payment Date all interest and other investment income (net of losses and
investment expenses) on funds on deposit in the Trust Accounts shall be
deposited into the Collection Account and shall be deemed to constitute a
portion of the Total Distribution Amount. 
Other than as permitted by the Rating Agencies, funds on deposit in the
Trust Accounts shall be invested in Eligible Investments that will mature so
that such funds will be available at the close of business on the Transfer Date
preceding the following Payment Date or, in the case of the Note Distribution
Account and the Reserve Account, the following Payment Date.  Funds deposited in a Trust Account on a
Transfer Date which immediately precedes a Payment Date are not required to be
invested overnight.

 

(c)           (i)  The
Indenture Trustee shall possess all right, title and interest in all funds on
deposit from time to time in the Trust Accounts and in all proceeds thereof
(including all income thereon) and all such funds, investments, proceeds and
income shall be part of the Trust Estate. 
The Trust Accounts shall be under the sole dominion and control of the
Indenture Trustee for the benefit of the Noteholders and the Certificateholder
or the Noteholders, as the case may be. 
If, at any time, any of the Trust Accounts ceases to be an Eligible
Deposit Account, the Indenture Trustee (or the Servicer on its behalf) shall
within 10 Business Days (or such longer period, not to exceed 30 calendar days,
as to which each Rating Agency may consent) establish a new Trust Account as an
Eligible Deposit Account and shall transfer any cash and/or any investments to
such new Trust Account.  So long as The
Bank of New York is an Eligible Institution, any Trust Account shall be
maintained with it in an Eligible Deposit Account.

 

(ii)           With respect to the Trust Account
Property, the Indenture Trustee agrees, by its acceptance hereof, that:

 

(A)          any
Trust Account Property that is held in “deposit accounts” (as defined in Section 9-102(a)(29)
of the UCC) shall be held solely in the Eligible Deposit Accounts and (1) each
such Eligible Deposit Account shall be subject to the exclusive custody and
control of the Indenture Trustee, the Indenture Trustee shall have sole
signature authority with respect thereto and to the extent the Indenture
Trustee ceases to be an Eligible Institution, the Indenture Trustee shall be the
related Eligible Institution’s “customer” and shall have “control” (in each
case within the meaning of Section 9-104 of the UCC) with respect to such
Eligible Deposit Account, (2) the Eligible Institution at which such
Eligible Deposit Account is maintained shall be a “bank” as defined in Section 9-102(a)(8) of
the UCC and shall agree to maintain such Eligible Deposit Account as a “deposit
account” as such term is defined in Section 9-102(a)(29) of the UCC, and (3) the
“bank’s jurisdiction” (within the meaning of Section 9-304 of the UCC)
with respect to such Eligible Deposit Account shall be the State of New York;

 

(B)           any
Trust Account Property that is held in “securities accounts” (as defined in Section 8-501(a) of
the UCC) shall be held solely in Eligible Deposit Accounts; and (1) the
Eligible Institution at which each such Eligible Deposit Account is maintained
shall be a “securities intermediary” as defined in Section 8-102(a)(14) of
the UCC and shall agree to maintain such Eligible Deposit Account as a “securities
account” as such term is defined in

 

23

 

Section 8-501(a) of
the UCC, (2) the Eligible Institution at which such Eligible Deposit
Account is maintained shall treat the Indenture Trustee as entitled to exercise
the rights that comprise any “financial asset” (as defined in Section 8-102(a)(9) of
the UCC) credited to the account, and if at any time such Eligible Institution
shall receive an “entitlement order” (within the meaning of Section 8-102(a)(8) of
the UCC) issued by the Indenture Trustee and relating to such Eligible Deposit
Account, such Eligible Institution shall comply with such entitlement order
without further consent by the Issuer or any other Person, (3) the
Eligible Institution at which such Eligible Deposit Account is maintained shall
agree with the Indenture Trustee that each item of property (whether investment
property, financial asset, security, instrument or cash) credited to such
Eligible Deposit Account shall be treated as a “financial asset” within the
meaning of Section 8-102(a)(9) of the UCC, (4) the “securities
intermediaries’ jurisdiction” (within the meaning of Section 8-110 of the
UCC) with respect to such Eligible Deposit Account shall be the State of New
York and (5) the Eligible Institution at which such Eligible Deposit
Account is maintained shall agree with the Indenture Trustee that in the event
that such securities intermediary has or subsequently obtains by agreement, by
operation of law or otherwise, a security interest in such Eligible Deposit
Account or any financial asset credited thereto, the securities intermediary
agrees that such security interest shall be subordinate to the security
interest of the Indenture Trustee and that the financial assets and other items
deposited to such an Eligible Deposit Account will not be subject to deduction,
set-off, banker’s lien, or any other right in favor of any person other than
the Indenture Trustee;

 

(C)           any
Trust Account Property that is of the type described in paragraph (a) or (b) of
the definition of “Delivery” shall be delivered to the Indenture Trustee in
accordance with paragraph (a) or (b), as applicable, of the definition of “Delivery”,
and shall be held as described in such paragraph;

 

(D)          any
Trust Account Property that is a book-entry security held through the Federal
Reserve System pursuant to Federal book-entry regulations shall be delivered in
accordance with paragraph (c) of the definition of “Delivery” and shall be
maintained by the Indenture Trustee, pending maturity or disposition, through
continued book-entry registration of such Trust Account Property as described
in such paragraph; and

 

(E)           any
Trust Account Property that is an “uncertificated security” under Article 8
of the UCC and that is not governed by clause (C) above shall be delivered
to the Indenture Trustee in accordance with paragraph (d) of the
definition of “Delivery” and shall be maintained by the Indenture Trustee,
pending maturity or disposition, through continued registration of the Indenture
Trustee’s (or its nominee’s) ownership of such security.

 

(iii)          The Servicer shall have the power,
revocable by the Indenture Trustee or by the Owner Trustee with the consent of
the Indenture Trustee, to instruct the Indenture Trustee to make withdrawals
and payments from the Trust Accounts for the purpose of permitting the Servicer
or the Owner Trustee to carry out its respective duties hereunder or permitting
the Indenture Trustee to carry out its duties under the Indenture.

 

SECTION 5.02   Collections.  The Servicer shall remit to the Collection
Account all payments by or on behalf of the Obligors with respect to the
Receivables (other than Purchased Receivables) and all Liquidation Proceeds
(exclusive of Recoveries, which shall be

 

24

 

applied in accordance with Section 4.02), within two Business Days
of receipt thereof.  Notwithstanding the
foregoing, if (i) JDCC is the Servicer, (ii) a Servicer Default shall
not have occurred and be continuing and (iii) JDCC’s unsecured,
non-guaranteed short-term debt is assigned a rating of at least A-1 by Standard &
Poor’s and Prime-1 by Moody’s, the Servicer shall remit such collections (as
collected during each Fiscal Month) to the Collection Account not less than two
Business Days prior to the 15th day of the calendar month following such Fiscal
Month (or, if such Fiscal Month ends in the early part of a calendar month,
then the 15th day of such calendar month in which such Fiscal Month ends).  For purposes of this Article V the
phrase “payments by or on behalf of Obligors” shall mean payments made with
respect to the Receivables by persons other than the Servicer or JDCC.

 

SECTION 5.03   Additional Deposits.  The Servicer and the Seller shall deposit or
cause to be deposited in the Collection Account the aggregate Purchase Amount
with respect to Purchased Receivables and the Servicer shall deposit therein
all amounts to be paid under Section 9.01(a).  The Servicer will deposit the aggregate
Purchase Amount with respect to Purchased Receivables when such obligations are
due pursuant to Section 4.07, unless the Servicer shall not be required to
make deposits within two Business Days of the receipt of collections from
Obligors pursuant to Section 5.02, in which case deposits of Purchased
Amounts shall be made on the Transfer Date.

 

SECTION 5.04   Distributions.

 

(a)           On
each Determination Date, the Servicer shall calculate the amounts to be
deposited in the Note Distribution Account and the Certificate Distribution
Account.

 

(b)           On
the second Business Day prior to each Payment Date, the Servicer shall instruct
the Indenture Trustee in writing in substantially the form of Schedule G
hereto (based on the information contained in the Servicer’s Certificate
delivered on the related Determination Date pursuant to Section 4.09) to
make deposits and distributions to the Servicer or the Administrator or
distribute to the applicable Trust Account or Certificate Distribution Account
by 12:00 noon (New York time) in the case of the Trust Accounts and 11:00 A.M.
(New York time) in the case of the Certificate Distribution Account, in each
case on such Payment Date.  Distributions
of the Total Distribution Amount shall be made by the Indenture Trustee in the
following order of priority:

 

(i)            to the Servicer (if
JDCC or an Affiliate is not the Servicer), from the Total Distribution Amount,
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods:

 

(ii)           to the
Administrator under the Administration Agreement, from the Total Distribution
Amount remaining after the application of clause (i), the Administration Fee
and all unpaid Administration Fees from prior Collection Periods;

 

(iii)          to the Note
Distribution Account, from the Total Distribution Amount remaining after the
application of clauses (i) and (ii), the accrued and unpaid interest on
the Notes for such Payment Date;

 

25

 

(iv)          to the Note
Distribution Account, from the Total Distribution Amount remaining after the application
of clauses (i), (ii) and (iii), the Note Monthly Principal Distributable
Amount;

 

(v)           to the Reserve
Account, from the Total Distribution Amount remaining after the application of
clauses (i), (ii), (iii) and (iv), the amount, if any, necessary to
increase the amounts on deposit in the Reserve Account to the Specified Reserve
Account Balance;

 

(vi)          to the Servicer (if
JDCC or an Affiliate is the Servicer), from the Total Distribution Amount
remaining after the application of clauses (i), (ii), (iii), (iv) and (v),
the Servicing Fee and all unpaid Servicing Fees from prior Collection Periods;

 

(vii)         to the Certificate
Distribution Account, from the Total Distribution Amount remaining after the
application of clauses (i), (ii), (iii), (iv), (v) and (vi), the
Certificate Monthly Principal Distributable Amount, if any; and

 

(viii)        to the Reserve
Account, the Total Distribution Amount remaining after the application of
clauses (i), (ii), (iii), (iv), (v), (vi) and (vii).

 

SECTION 5.05   Reserve Account.

 

(a)           On
the Closing Date, the Seller shall deposit the Reserve Account Initial Deposit
into the Reserve Account.  The Servicer
shall determine the Specified Reserve Account Balance for each Payment Date.

 

(b)           (i)  If
the amount on deposit in the Reserve Account on each Payment Date (after giving
effect to all deposits or withdrawals therefrom on such Payment Date pursuant
to Section 5.04 and Section 5.05(c)) is greater than the Specified
Reserve Account Balance for such Payment Date, the Servicer shall instruct the
Indenture Trustee to distribute such excess in the Reserve Account to the
Seller.

 

(ii)           On the date on which all interest on
and principal of the Notes have been paid in full, the Servicer shall instruct
the Indenture Trustee to distribute the Reserve Account balance to the Seller.

 

(iii)          Amounts properly distributed to the
Seller pursuant to this Section 5.05(b) shall be deemed released from
the Trust and the security interest therein granted to the Indenture Trustee,
and the Seller shall in no event thereafter be required to refund any such
distributed amounts.

 

(c)           In
the event that the Noteholders’ Distributable Amount for a Payment Date exceeds
the amount deposited into the Note Distribution Account pursuant to Section 5.04(b)(iii) and
(iv) on such Payment Date, the Servicer shall instruct the Indenture
Trustee to withdraw from the Reserve Account on such Payment Date, to the
extent of funds available therein, an amount equal to such excess and deposit
such amount into the Note Distribution Account.

 

26

 

SECTION 5.06   Statements to the Certificateholder and
Noteholders.

 

(a)           On
the second Business Day preceding each Payment Date, the Servicer shall provide
to the Indenture Trustee (with a copy to the Rating Agencies) and to the Owner
Trustee for the Owner Trustee to forward to the Certificateholder of record a
statement substantially in the form of Schedule E setting forth at least
the following information as to the Notes and the Certificate to the extent
applicable:

 

(i)            the amount of such
distribution allocable to principal;

 

(ii)           the amount of such
distribution allocable to interest;

 

(iii)          the Pool Balance,
Note Value and Pool Face Amount as of the close of business on the last day of
the preceding Collection Period;

 

(iv)          (A) the
outstanding principal balance of (1) the Class A-1 Notes, (2) the
Class A-2 Notes, (3) the Class A-3 Notes and (4) the Class A-4
Notes and (B) the Certificate Balance, in each case after giving effect to
payments allocated to principal reported under (i) above;

 

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

 

(vi)          the amount of the
Administration Fee paid to the Administrator with respect to such Collection
Period;

 

(vii)         the aggregate amount
of the Purchase Amounts for Purchased Receivables with respect to the related
Collection Period;

 

(viii)        the balance of the
Reserve Account on such Payment Date, after giving effect to distributions made
on such Payment Date, and the Specified Reserve Account Balance for such
Payment Date;

 

(ix)           the amount of all
Scheduled Payments in respect of Receivables 60 days or more past due, and such
amount as a percentage of the Pool Balance, as of the close of business on the
last day of the preceding Collection Period; and

 

(x)            the Face Amount of
Receivables with any Scheduled Payments 60 days or more past due, and such
amount as a percentage of the Pool Face Amount, as of the close of business on
the last day of the preceding Collection Period.

 

Each
amount set forth pursuant to paragraph (i), (ii) or (iv) above shall
be expressed as a dollar amount per $1,000 of original principal balance of a
Certificate or Note, as applicable.

 

(b)           On
the second Business Day preceding each Payment Date, the Servicer shall provide
to the Indenture Trustee (with a copy to the Rating Agencies) for the Indenture
Trustee to forward to each Noteholder of record, a statement substantially in
the form of

 

27

 

Schedule F setting forth at least the
following information as to the Notes to the extent applicable with respect to
such Payment Date or the related Collection Period:

 

(i)            the amount of such
distribution allocable to principal;

 

(ii)           the amount of such distribution
allocable to interest;

 

(iii)          the Pool Balance,
Note Value and Pool Face Amount as of the close of business on the last day of
the preceding Collection Period;

 

(iv)          (A) the
outstanding principal balance of (1) the Class A-1 Notes, (2) the
Class A-2 Notes, (3) the Class A-3 Notes and (4) the Class A-4
Notes and (B) the Certificate Balance, in each case after giving effect to
payments allocated to principal reported under (i) above;

 

(v)           the amount of the
Servicing Fee paid to the Servicer with respect to such Collection Period;

 

(vi)          the amount of the
Administration Fee paid to the Administrator with respect to such Collection
Period;

 

(vii)         the aggregate amount
of Purchase Amounts for Purchased Receivables with respect to such Collection
Period;

 

(viii)        the balance of the
Reserve Account on such Payment Date, after giving effect to the distributions
made on such Payment Date, and the Specified Reserve Account Balance for such
Payment Date; and

 

(ix)           the amount of all
Scheduled Payments in respect of Receivables 60 days or more past due, and such
amount as a percentage of the Pool Balance, as of the close of business on the
last day of the preceding Collection Period; and

 

(x)            the Face Amount of
Receivables with any Scheduled Payments 60 days or more past due, and such
amount as a percentage of the Pool Face Amount, as of the close of business on
the last day of the preceding Collection Period.

 

Each
amount set forth pursuant to subclause (i), (ii) or (iv) above shall
be expressed as a dollar amount per $1,000 of original principal balance of a
Note.

 

Within
the prescribed period of time for tax reporting purposes after the end of each
calendar year during the term of the Indenture, the Indenture Trustee shall
mail to each Person who at any time during such calendar year shall have been a
Noteholder and received any payment thereon, a statement containing the amounts
described in (i) and (ii) (other than information relating to the
Note Interest Rates) above and any other information required by applicable tax
laws, for the purposes of such Noteholder’s preparation of Federal income tax
returns.

 

28

 

The
Indenture Trustee shall only be required to provide to the Noteholders the
information furnished to it by the Servicer.

 

SECTION 5.07   Net Deposits.  As an administrative convenience, unless the
Servicer is required to remit collections within two Business Days of their
receipt, the Servicer will be permitted to make the deposit of collections on
the Receivables and Purchase Amounts for or with respect to the Collection
Period net of distributions to be made to the Servicer with respect to the
Collection Period.  The Servicer,
however, will account to the Owner Trustee, the Indenture Trustee, the Noteholders
and the Certificateholder as if all deposits, distributions and transfers were
made individually.

 

ARTICLE VI

The Seller

 

SECTION 6.01   Representations of Seller.  The Seller makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables.  The representations speak
as of the execution and delivery of this Agreement and shall survive the sale
of the Receivables to the Issuer and the pledge thereof to the Indenture
Trustee pursuant to the Indenture.

 

(a)           Organization
and Good Standing.  The Seller is
duly organized and validly existing as a corporation in good standing under the
laws of the State of Nevada, with the power and authority to own its properties
and to conduct its business as such properties are currently owned and such
business is presently conducted, and had at all relevant times, and has, the
power, authority and legal right to acquire and own the Receivables.

 

(b)           Due
Qualification.  The Seller is duly
qualified to do business as a foreign corporation in good standing, and has
obtained all necessary licenses and approvals in all jurisdictions in which the
failure to so qualify or to obtain such license or approval would render any
Receivable unenforceable that would otherwise be enforceable by the Seller, the
Sub-Servicer or the Owner Trustee.

 

(c)           Power
and Authority.  The Seller has the
power and authority to execute and deliver this Agreement and to carry out its
terms; the Seller has full power and authority to sell and assign the property
to be sold and assigned to and deposited with the Issuer and the Seller and
shall have duly authorized such sale and assignment to the Issuer by all
necessary corporate action; and the execution, delivery and performance of this
Agreement have been duly authorized by the Seller by all necessary corporate
action.

 

(d)           Binding
Obligation.  This Agreement
constitutes a legal, valid and binding obligation of the Seller enforceable in
accordance with its terms except that such enforcement may be subject to bankruptcy,
insolvency, reorganization, moratorium or other similar laws now or hereafter
in effect relating to creditors’ rights generally and the remedy of specific
performance and injunctive relief may be subject to certain equitable defenses
and to the discretion of the court before which any proceeding therefor may be
brought.

 

29

 

(e)           No
Violation.  The consummation of the
transactions contemplated by this Agreement and the fulfillment of the terms
hereof do not conflict with, result in any breach of any of the terms and
provisions of, nor constitute (with or without notice or lapse of time) a
default under, the articles of incorporation or by-laws of the Seller, or any
indenture, agreement or other instrument to which the Seller is a party or by
which it shall be bound; nor result in the creation or imposition of any Lien
upon any of its properties pursuant to the terms of any such indenture,
agreement or other instrument (other than pursuant to the Basic Documents); nor
violate any law or, to the best of the Seller’s knowledge, any order, rule or
regulation applicable to the Seller of any court or of any federal or State
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Seller or its properties.

 

(f)            No
Proceedings.  To the Seller’s best
knowledge, there are no proceedings or investigations pending, or threatened,
before any court, regulatory body, administrative agency or other governmental
instrumentality having jurisdiction over the Seller or its properties:  (i) asserting the invalidity of this
Agreement, the Indenture or any of the other Basic Documents, the Notes or the
Certificate, (ii) seeking to prevent the issuance of the Notes or the
Certificate or the consummation of any of the transactions contemplated by this
Agreement, the Indenture or any of the other Basic Documents, (iii) seeking
any determination or ruling that might materially and adversely affect the
performance by the Seller of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic
Documents, the Notes or the Certificate or (iv) which involve the Seller
and which might adversely affect the Federal or state income tax attributes of
the Notes or the Certificate.

 

SECTION 6.02   Corporate Existence.

 

(a)           During
the term of this Agreement, the Seller will keep in full force and effect its
existence, rights and franchises as a corporation under the laws of the
jurisdiction of its incorporation and will obtain and preserve its
qualification to do business in each jurisdiction in which such qualification
is or shall be necessary to protect the validity and enforceability of this
Agreement, the Basic Documents and each other instrument or agreement necessary
or appropriate to the proper administration of this Agreement and the
transactions contemplated hereby.

 

(b)           During
the term of this Agreement, the Seller shall observe the applicable legal
requirements for the recognition of the Seller as a legal entity separate and
apart from its Affiliates, including as follows:

 

(i)            the Seller shall
maintain corporate records and books of account separate from those of its
Affiliates;

 

(ii)           except as otherwise
provided in this Agreement, the Seller shall not commingle its assets and funds
with those of its Affiliates;

 

(iii)          the Seller shall
hold such appropriate meetings of its Board of Directors as are necessary to
authorize all the Seller’s corporate actions required by law to be authorized
by the Board of Directors, shall keep minutes of such meetings and of meetings
of its stockholder(s) and observe all other customary corporate formalities
(and

 

30

 

any successor
Seller not a corporation shall observe similar procedures in accordance with
its governing documents and applicable law);

 

(iv)          the Seller shall at
all times hold itself out to the public under the Seller’s own name as a legal
entity separate and distinct from its Affiliates; and

 

(v)           all transactions and
dealings between the Seller and its Affiliates will be conducted on an arm’s-length
basis.

 

SECTION 6.03   Liability of Seller; Indemnities.  The Seller shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Seller under the Agreement.

 

(a)           The
Seller shall indemnify, defend and hold harmless the Issuer, the Owner Trustee
and the Indenture Trustee and their officers, directors and agents from and
against any taxes that may at any time be asserted against the Issuer, the
Owner Trustee or the Indenture Trustee or their officers, directors, and agents
with respect to the sale of the Receivables to the Issuer or the issuance and
original sale of the Certificate and the Notes, including any sales, gross
receipts, general corporation, tangible personal property, privilege or license
taxes (but, in the case of the Issuer, not including any taxes asserted with
respect to ownership of the Receivables or Federal or other income taxes
arising out of the transactions contemplated by this Agreement) and costs and
expenses in defending against the same.

 

(b)           The
Seller shall indemnify, defend and hold harmless the Issuer, the Owner Trustee
and the Indenture Trustee and their officers, directors, and agents from and
against any loss, liability or expense incurred by reason of (i) the
Seller’s willful misfeasance, bad faith or negligence in the performance of its
duties under this Agreement, or by reason of reckless disregard of its
obligations and duties under this Agreement and (ii) the Seller’s or the
Issuer’s violation of Federal or State securities laws in connection with the
offering and sale of the Notes and the Certificate.

 

(c)           The
Seller shall pay any and all property taxes (including taxes on intangibles),
excise taxes, sales taxes and similar taxes levied or assessed upon all or any
part of the Trust Estate including, without limitation, the Receivables.

 

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

 

SECTION 6.04   Merger or Consolidation of, or Assumption
of the Obligations of, Seller.  Any
Person (a) into which the Seller may be merged or consolidated, (b) which
may result from any merger or consolidation to which the Seller shall be a
party or (c) which may succeed to the properties and assets of the Seller
substantially as a whole, which Person in any of the foregoing cases executes
an agreement of assumption to perform every obligation of the Seller under this
Agreement, shall be the successor to the Seller hereunder without the execution

 

31

 

or filing of any document or any further act by any of the parties to
this Agreement; provided, however, that (i) immediately after giving
effect to such transaction, no representation or warranty made pursuant to Section 3.01
shall have been breached and no Servicer Default, and no event that, after
notice or lapse of time, or both, would become a Servicer Default shall have
occurred and be continuing, (ii) the Seller shall have delivered to the
Owner Trustee and the Indenture Trustee an Officers’ Certificate and an Opinion
of Counsel each stating that such consolidation, merger or succession and such
agreement of assumption comply with this Section and that all conditions
precedent, if any, provided for in this Agreement relating to such transaction
have been complied with, (iii) the Rating Agency Condition shall have been
satisfied with respect to such transaction and (iv) the Seller shall have
delivered to the Owner Trustee and the Indenture Trustee an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements and amendments thereto have been
executed and filed that are necessary fully to preserve and protect the
interest of the Owner Trustee and Indenture Trustee, respectively, in the
Receivables and reciting the details of such filings, or (B) stating that,
in the opinion of such counsel, no such action shall be necessary to preserve
and protect such interests. 
Notwithstanding anything herein to the contrary, the execution of the
foregoing agreement of assumption and compliance with clauses (i), (ii), (iii) and
(iv) above shall be conditions to the consummation of the transactions
referred to in clause (a), (b) or (c) above.

 

SECTION 6.05   Limitation on Liability of Seller and
Others.  The Seller and any director
or officer or employee or agent of the Seller may rely in good faith on the
advice of counsel or on any document of any kind, prima facie properly executed
and submitted by any Person respecting any matters arising hereunder.  The Seller shall not be under any obligation
to appear in, prosecute or defend any legal action that shall not be incidental
to its obligations under this Agreement, and that in its opinion may involve it
in any expense or liability.

 

32

 

SECTION 6.06   Seller May Own Notes; Retention of
the Certificate.  The Seller and any
Affiliate thereof may in its individual or any other capacity become the owner
or pledgee of the Notes with the same rights as it would have if it were not
the Seller or an Affiliate thereof, except as expressly provided herein or in
any Basic Document.  The Seller shall
retain and not transfer the Certificate.

 

SECTION 6.07   Right of Seller to Repurchase Receivables.  As of the last day of any Collection Period,
the Seller has an option to repurchase any Receivable at a purchase price equal
to the Purchase Amount of such Receivable; provided that the aggregate
Principal Balance of all Receivables repurchased by the Seller pursuant to this
Section 6.07 shall not at any time in the aggregate exceed 2.0% of the
Initial Pool Balance.  To exercise such
option, the Seller shall deposit pursuant to Section 5.03 in the
Collection Account an amount equal to the aggregate Purchase Amount of the
repurchased Receivables.

 

ARTICLE VII

The Servicer

 

SECTION 7.01   Representations of Servicer.  The Servicer makes the following
representations on which the Issuer is deemed to have relied in acquiring the
Receivables.  The representations speak
as of the execution and delivery of this Agreement (or as of the date a Person
(other than the Indenture Trustee) becomes Servicer pursuant to Sections 7.03
and 8.02, in the case of a successor to the Servicer) and shall survive the
sale of the Receivables to the Issuer and the pledge thereof to the Indenture
Trustee pursuant to the Indenture.

 

(a)           Organization and Good Standing.  The Servicer is a corporation duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
incorporation, and has the corporate power and authority to own its properties
and to conduct the business in which it is currently engaged, and had at all
relevant times, and has, the power, authority and legal right to acquire, own,
sell and service the Receivables and to hold the Receivable Files as custodian.

 

(b)           Power and Authority.  The Servicer has the corporate power and
authority to execute and deliver this Agreement and to carry out its terms; and
the execution, delivery and performance of this Agreement have been duly
authorized by the Servicer by all necessary corporate action.

 

(c)           Binding Obligation.  This Agreement constitutes a legal, valid and
binding obligation of the Servicer enforceable in accordance with its terms
except that such enforcement may be subject to bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to creditors’ rights generally and the remedy of specific performance
and injunctive relief may be subject to certain equitable defenses and to the
discretion of the court before which any proceeding therefor may be brought.

 

(d)           No Violation.  The consummation of the transactions
contemplated by this Agreement and the fulfillment of the terms hereof shall
not conflict with, result in any breach of any of the terms and provisions of,
nor constitute (with or without notice or lapse of time) a

 

33

 

default under, the articles of incorporation or by-laws of the
Servicer, or any indenture, agreement or other instrument to which the Servicer
is a party or by which it shall be bound; nor result in the creation or
imposition of any Lien upon any of its properties pursuant to the terms of any
such indenture, agreement or other instrument (other than this Agreement); nor
violate any law or, to the best of the Servicer’s knowledge, any order, rule or
regulation applicable to the Servicer of any court or of any Federal or State
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Servicer or its properties.

 

(e)           No Proceedings.  To the Servicer’s best knowledge, there are
no proceedings or investigations pending, or threatened, before any court,
regulatory body, administrative agency or other governmental instrumentality
having jurisdiction over the Servicer or its properties:  (i) asserting the invalidity of this
Agreement, the Indenture, any of the other Basic Documents, the Notes or the
Certificate, (ii) seeking to prevent the issuance of the Notes or the
Certificate or the consummation of any of the transactions contemplated by this
Agreement, the Indenture or any of the other Basic Documents, (iii) seeking
any determination or ruling that might materially and adversely affect the
performance by the Servicer of its obligations under, or the validity or
enforceability of, this Agreement, the Indenture, any of the other Basic
Documents, the Notes or the Certificate or (iv) relating to the Servicer
and which might adversely affect the Federal or state income tax attributes of
the Notes or the Certificate.

 

(f)            No Insolvent Obligors.  As of the Cut-off Date, no Obligor on a
Receivable is shown on the Receivable Files as the subject of a bankruptcy
proceeding.

 

SECTION 7.02   Indemnities of Servicer.  The Servicer shall be liable in accordance
herewith only to the extent of the obligations specifically undertaken by the
Servicer under this Agreement.

 

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

 

(b)           The Servicer shall indemnify, defend
and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, and the
Seller and their respective officers, directors and agents from and against any
taxes that may at any time be asserted against any such Person with respect to
the transactions contemplated herein, including any sales, gross receipts, general
corporation, tangible personal property, privilege or license taxes (but, in
the case of the Issuer, not including any taxes asserted with respect to, and
as of the date of, the sale of the Receivables to the Issuer or the issuance
and original sale of the Certificate and the Notes, or asserted with respect to
ownership of the Receivables, or Federal or other income taxes arising out of
distributions on the Certificate or the Notes) and costs and expenses in
defending against the same.

 

(c)           The Servicer shall indemnify, defend
and hold harmless the Issuer, the Owner Trustee, the Indenture Trustee, the
Seller, the Certificateholder and the Noteholders and

 

34

 

any of the officers, directors and agents of the Issuer, the Owner
Trustee, the Indenture Trustee and the Seller from and against any and all
costs, expenses, losses, claims, damages and liabilities to the extent that
such cost, expense, loss, claim, damage or liability arose out of, or was
imposed upon any such Person through, the negligence, willful misfeasance or
bad faith of the Servicer in the performance of its duties under this Agreement
or by reason of reckless disregard of its obligations and duties under this
Agreement or on account of the failure of the Servicer to be qualified to do
business as a foreign corporation or to have obtained a license or approval in
any jurisdiction.

 

(d)           The Servicer shall indemnify, defend
and hold harmless the Owner Trustee and the Indenture Trustee and their respective
officers, directors and agents from and against all costs, expenses, losses,
claims, damages and liabilities arising out of or incurred in connection with
the acceptance or performance of the trusts and duties herein and contained in
the Trust Agreement, in the case of the Owner Trustee, and contained in the
Indenture, in the case of the Indenture Trustee, except to the extent that such
cost, expense, loss, claim, damage or liability:  (i) shall be due to the willful
misfeasance, bad faith or negligence (except for errors in judgment) of the
Owner Trustee or the Indenture Trustee as applicable; or (ii) shall arise
from the breach by the Owner Trustee of any of its representations or
warranties set forth in Section 7.03 of the Trust Agreement.

 

(e)           To the extent not indemnified by the
Seller under Section 6.03, the Servicer shall pay any and all taxes levied
or assessed upon all or any part of the Owner Trust Estate, other than any
taxes asserted with respect to, and as of the date of, the sale of the Receivables
to the Issuer or the issuance and original sale of the Certificate and the
Notes, or Federal or other income taxes imposed on the Issuer because of its
classification or reclassification for tax purposes, or Federal or other income
taxes arising out of distributions on the Certificate or the Notes.

 

(f)            The Servicer shall pay the Indenture
Trustee from time to time reasonable compensation for all services rendered by
the Indenture Trustee under the Indenture (which compensation shall not be limited
by any provision of law in regard to the compensation of a trustee of an
express trust).

 

(g)           The Servicer shall, except as
otherwise expressly provided in the Indenture, reimburse the Indenture Trustee
upon its request for all reasonable expenses, disbursements and advances
incurred or made by the Indenture Trustee in accordance with any provision of
the Indenture (including, but not limited to, the reasonable compensation,
expenses and disbursements of its agents and either in-house counsel or outside
counsel, but not both) except any such expense, disbursement or advance as may
be attributable to its negligence or bad faith.

 

For
purposes of this Section 7.02, in the event of the termination of the
rights and obligations of JDCC (or any successor thereto pursuant to Section 7.03)
as Servicer pursuant to Section 8.01, or a resignation by such Servicer
pursuant to this Agreement, such Servicer shall be deemed to be the Servicer
pending appointment of a successor Servicer (other than the Indenture Trustee)
pursuant to Section 8.02.

 

35

 

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

 

SECTION 7.03   Merger or Consolidation of, or Assumption
of the Obligations of, Servicer.  Any
Person (a) into which the Servicer may be merged or consolidated, (b) which
may result from any merger or consolidation to which the Servicer shall be a
party, (c) which may succeed to the properties and assets of the Servicer
substantially as a whole, or (d) with respect to the Servicer’s
obligations hereunder, which is a corporation 50% or more of the voting stock
of which is owned, directly or indirectly, by Deere, which Person executed an
agreement of assumption to perform every obligation of the Servicer hereunder,
shall be the successor to the Servicer under this Agreement without further act
on the part of any of the parties to this Agreement; provided, however, that (i) immediately
after giving effect to such transaction, no Servicer Default, and no event
which, after notice or lapse of time, or both, would become a Servicer Default
shall have occurred and be continuing, (ii) the Servicer shall have
delivered to the Owner Trustee and the Indenture Trustee an Officers’
Certificate and an Opinion of Counsel each stating that such consolidation,
merger or succession and such agreement of assumption comply with this Section and
that all conditions precedent provided for in this Agreement relating to such
transaction have been complied with, (iii) the Rating Agency Condition
shall have been satisfied with respect to such transaction and (iv) the
Servicer shall have delivered to the Owner Trustee and the Indenture Trustee an
Opinion of Counsel either (A) stating that, in the opinion of such
counsel, all financing statements and continuation statements and amendments
thereto have been executed (if required) and filed that are necessary fully to
preserve and protect the interest of the Owner Trustee and the Indenture
Trustee, respectively, in the Receivables and reciting the details of such
filings or (B) stating that, in the opinion of such counsel, no such
action shall be necessary to preserve and protect such interests.  Notwithstanding anything herein to the
contrary, the execution of the foregoing agreement of assumption and compliance
with clauses (i), (ii), (iii) and (iv) above shall be conditions to
the consummation of the transactions referred to in clause (a), (b), (c) or
(d) above.

 

SECTION 7.04   Limitation on Liability of Servicer and
Others.  Neither the Servicer nor the
Sub-Servicer nor any of the directors or officers or employees or agents of the
Servicer or the Sub-Servicer, as the case may be, shall be under any liability
to the Issuer, the Noteholders or the Certificateholder, except as provided
under this Agreement, for any action taken or for refraining from the taking of
any action pursuant to this Agreement or for errors in judgment; provided,
however, that this provision shall not protect the Servicer, the Sub-Servicer
or any such person against any liability that would otherwise be imposed by
reason of willful misfeasance, bad faith or negligence in the performance of
duties or by reason of reckless disregard of obligations and duties under this
Agreement.  The Servicer, the
Sub-Servicer and any director or officer or employee or agent of the Servicer
or the Sub-Servicer, as the case may be, may rely in good faith on any document
of any kind prima facie properly executed and submitted by any person
respecting any matters arising under this Agreement.

 

Except
as provided in this Agreement, neither the Servicer nor the Sub-Servicer

 

36

 

shall
be under any obligation to appear in, prosecute or defend any legal action that
shall not be incidental to its duties to service the Receivables in accordance
with this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer or the Sub-Servicer may
undertake any reasonable action that it may deem necessary or desirable in
respect of this Agreement and the Basic Documents and the rights and duties of
the parties to this Agreement and the Basic Documents and the interests of the
Certificateholder under this Agreement and the Noteholders under the Indenture.

 

SECTION 7.05   JDCC Not to Resign as Servicer.  Subject to the provisions of Section 7.03,
JDCC shall not resign from the obligations and duties hereby imposed on it as
Servicer under this Agreement except upon determination that the performance of
its duties under this Agreement shall no longer be permissible under applicable
law.  Notice of any such determination
permitting the resignation of JDCC shall be communicated to the Owner Trustee
and the Indenture Trustee at the earliest practicable time (and, if such
communication is not in writing, shall be confirmed in writing at the earliest
practicable time) and any such determination shall be evidenced by an Opinion
of Counsel to such effect delivered to the Owner Trustee and the Indenture
Trustee concurrently with or promptly after such notice.  No such resignation shall become effective
until the Indenture Trustee or a successor Servicer shall have assumed the
responsibilities and obligations of JDCC in accordance with Section 8.02.

 

SECTION 7.06   Servicer to Act as Administrator.  In the event of the resignation or removal of
the Administrator and the failure of a successor Administrator to have been
appointed and to have accepted such appointment as successor Administrator, the
Servicer shall become the successor Administrator and shall be bound by the
terms of the Administration Agreement.

 

ARTICLE VIII

Default

 

SECTION 8.01   Servicer Default.  If any one of the following events (a “Servicer
Default”) shall occur and be continuing:

 

(a)           any failure by the
Servicer to deliver to the Indenture Trustee for deposit in any of the Trust
Accounts or the Certificate Distribution Account any required payment or to
direct the Indenture Trustee to make any required distributions therefrom that
shall continue unremedied for a period of three Business Days after written
notice of such failure is received by the Servicer from the Owner Trustee or
the Indenture Trustee or after discovery of such failure by an officer of the
Servicer; or

 

(b)           failure on the part
of the Servicer or the Seller, as the case may be, duly to observe or to
perform in any material respect any other covenants or agreements of the
Servicer or the Seller (as the case may be) set forth in this Agreement or any
other Basic Document, which failure shall (i) materially and adversely
affect the rights of Certificateholder or Noteholders and (ii) continue
unremedied for a period of 60 days after the date on which written notice of
such failure, requiring the same to be remedied,

 

37

 

shall have
been given (A) to the Servicer or the Seller (as the case may be) by the
Owner Trustee or the Indenture Trustee or (B) to the Servicer or the
Seller (as the case may be), and to the Owner Trustee and the Indenture Trustee
by the Holders of Notes evidencing not less than 25% of the Outstanding Amount
of the Notes or the Certificateholder (as defined in the Trust Agreement); or

 

(c)           an Insolvency Event
occurs with respect to the Servicer;

 

then,
and in each and every case, so long as the Servicer Default shall not have been
remedied, either the Indenture Trustee, or the Holders of Notes evidencing not
less than 25% of the Outstanding Amount of the Notes, by notice then given in
writing to the Servicer (and to the Indenture Trustee and the Owner Trustee if
given by the Noteholders) may terminate all the rights and obligations (other
than the obligations set forth in Section 7.02 hereof) of the Servicer
under this Agreement.  On or after the
receipt by the Servicer of such written notice, all authority and power of the
Servicer under this Agreement, whether with respect to the Notes, the
Certificate or the Receivables or otherwise, shall, without further action,
pass to and be vested in the Indenture Trustee or such successor Servicer as
may be appointed under Section 8.02; and, without limitation, the
Indenture Trustee and the Owner Trustee are hereby authorized and empowered to
execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact
or otherwise, any and all documents and other instruments, and to do or
accomplish all other acts or things necessary or appropriate to effect the
purposes of such notice of termination, whether to complete the transfer and
endorsement of the Receivables and related documents, or otherwise.  The predecessor Servicer shall cooperate with
the successor Servicer, the Indenture Trustee and the Owner Trustee in
effecting the termination of the responsibilities and rights of the predecessor
Servicer under this Agreement, including the transfer to the successor Servicer
for administration by it of all cash amounts that shall at the time be held by
the predecessor Servicer for deposit, or shall thereafter be received by it
with respect to a Receivable.  All
reasonable costs and expenses (including reasonable attorneys’ fees) incurred
in connection with transferring the Receivable Files to the successor Servicer
and amending this Agreement to reflect such succession as Servicer pursuant to
this Section shall be paid by the predecessor Servicer upon presentation
of reasonable documentation of such costs and expenses.  Upon receipt of notice of the occurrence of a
Servicer Default, the Owner Trustee shall give notice thereof to the Rating
Agencies.

 

SECTION 8.02   Appointment of Successor.

 

(a)           Upon
the Servicer’s receipt of notice of termination, pursuant to Section 8.01
or the Servicer’s resignation in accordance with the terms of this Agreement,
the predecessor Servicer shall continue to perform its functions as Servicer
under this Agreement, in the case of termination, only until the date specified
in such termination notice or, if no such date is specified in a notice of
termination, until receipt of such notice and, in the case of resignation,
until the earlier of (x) the date 45 days from the delivery to the Owner
Trustee and the Indenture Trustee of written notice of such resignation (or
written confirmation of such notice) in accordance with the terms of this
Agreement and (y) the date upon which the predecessor Servicer shall become
unable to act as Servicer, as specified in the notice of resignation and
accompanying Opinion of Counsel.  In the
event of the Servicer’s termination hereunder, the Indenture Trustee shall
appoint a successor Servicer, and the successor Servicer shall accept its

 

38

 

appointment by a written assumption in form
acceptable to the Owner Trustee and the Indenture Trustee.  In the event that a successor Servicer has
not been appointed at the time when the predecessor Servicer has ceased to act
as Servicer in accordance with this Section, pending the appointment of and
acceptance by a successor Servicer, the Indenture Trustee without further
action shall automatically be appointed and serve as the successor Servicer and
the Indenture Trustee shall be entitled to the Servicing Fee; provided,
however, the provisions of Section 7.01 shall not apply and the provisions
of Section 4.07 shall not apply in the case of a breach by a predecessor
Servicer.  The Indenture Trustee may
delegate any of its servicing obligations to an Affiliate or agent in
accordance with Section 4.14.  The
Indenture Trustee shall not be liable for any action or failure to act on the
part of the predecessor Servicer. 
Notwithstanding the above, the Indenture Trustee shall, if it shall be
legally unable so to act, appoint or petition a court of competent jurisdiction
to appoint, any established institution, having a net worth of not less than
$50,000,000 and whose regular business shall include the servicing of equipment
receivables, as the successor to the Servicer under this Agreement.

 

(b)           Upon
appointment, the successor Servicer (including the Indenture Trustee acting as
successor Servicer) shall be the successor in all respects to the predecessor
Servicer and shall be subject to all the responsibilities, duties and
liabilities arising thereafter relating thereto placed on the predecessor
Servicer and shall be entitled to the Servicing Fee and all the rights granted
to the predecessor Servicer by the terms and provisions of this Agreement.

 

(c)           Subject
to the Indenture Trustee’s right to appoint a successor Servicer pursuant to Section 8.02(a) after
the Indenture Trustee has become the Servicer, the Servicer may not resign
unless it is prohibited from serving as such by law.

 

SECTION 8.03   Notification to Noteholders and the
Certificateholder.  Upon any
termination of, or appointment of a successor to the Servicer pursuant to this Article VIII,
the Owner Trustee shall give prompt written notice thereof to the
Certificateholder and the Indenture Trustee shall give prompt written notice
thereof to Noteholders and the Rating Agencies.

 

SECTION 8.04   Waiver of Past Defaults.  The Holders of Notes evidencing not less than
a majority of the Outstanding Amount of the Notes, on behalf of all Noteholders
(or the Holder (as defined in the Trust Agreement) of the Certificate, in the
case of any default which does not adversely affect the Indenture Trustee or
the Noteholders) may, waive in writing any default by the Servicer in the
performance of its obligations hereunder and its consequences, except a default
in making any required deposits to or payments from any of the Trust Accounts
in accordance with this Agreement.  Upon
any such waiver of a past default, such default shall cease to exist, and any
Servicer Default arising therefrom shall be deemed to have been remedied for
every purpose of this Agreement.  No such
waiver shall extend to any subsequent or other default or impair any right
consequent thereto.

 

ARTICLE IX

Termination

 

SECTION 9.01   Optional Purchase of All Receivables and
Termination.

 

39

 

(a)           On
the last day of any Collection Period immediately preceding a Payment Date as
of which the then outstanding Pool Balance is 10% or less of the Initial Pool
Balance, the Servicer shall have the option to purchase the Owner Trust Estate,
other than the Trust Accounts and the Certificate Distribution Account;
provided, however, that the Servicer may not effect any such purchase so long
as the rating on Deere’s long-term debt obligations is less than Baa3 by Moody’s,
unless the Owner Trustee and the Indenture Trustee shall have received an
Opinion of Counsel to the effect that such purchase would not constitute a
fraudulent conveyance; provided further that each Rating Agency shall receive a
copy of such Opinion of Counsel and shall have confirmed that the rating
assigned to the Notes by such Rating Agency shall not be withdrawn or
downgraded as a result of such purchase. 
To exercise such option, the Servicer shall deposit pursuant to Section 5.03
in the Collection Account an amount equal to the aggregate Purchase Amount for
the Receivables (including defaulted Receivables) and shall succeed to all
interests in and to the Trust.

 

(b)           Upon
any sale of the assets of the Trust pursuant to Section 9.02 of the Trust
Agreement, the Servicer shall instruct the Indenture Trustee to deposit the
proceeds from such sale after all payments and reserves therefrom have been
made (the “Insolvency Proceeds”) in the Collection Account.  On the Payment Date on which the Insolvency
Proceeds are deposited in the Collection Account (or, if such proceeds are not
so deposited on a Payment Date, on the Payment Date immediately following such
deposit), the Servicer shall instruct the Indenture Trustee to make the
following deposits (after the application on such Payment Date of the Total
Distribution Amount and funds on deposit in the Reserve Account pursuant to
Sections 5.04 and 5.05) from the Insolvency Proceeds and any funds remaining on
deposit in the Reserve Account (including the proceeds of any sale of
investments therein as described in the following sentence):

 

(i)            to the Note
Distribution Account, any portion of the accrued but unpaid interest on the
Notes not otherwise deposited into the Note Distribution Account on such
Payment Date;

 

(ii)           to the Note
Distribution Account, the outstanding principal balance of the Notes (after
giving effect to the reduction in the outstanding principal balance of the
Notes to result from the deposits made in the Note Distribution Account on such
Payment Date and on prior Payment Dates); and

 

(iii)          to the Certificate
Distribution Account, the Certificate Balance (after giving effect to the
reduction in the Certificate Balance to result from the deposits made in the
Certificate Distribution Account on such Payment Date).

 

Any investments on deposit in the Reserve Account and
Note Distribution Account which will not mature on or before such Payment Date
shall be sold by the Indenture Trustee at such time as will result in the
Indenture Trustee receiving the proceeds from such sale not later than the
Transfer Date preceding such Payment Date. 
Any Insolvency Proceeds remaining after the deposits described above
shall be paid to the Seller.

 

40

 

(c)           Notice
of any termination of the Trust shall be given by the Servicer to the Owner
Trustee and the Indenture Trustee as soon as practicable after the Servicer has
received notice thereof.

 

(d)           Following
the satisfaction and discharge of the Indenture and the payment in full of the
principal of and interest on, and the cancellation of all of, the Notes, the
Certificateholder will succeed to the rights of the Noteholders hereunder other
than Section 5.06(b) and the Owner Trustee will succeed to the rights
of the Indenture Trustee pursuant to this Agreement.

 

(e)           This
Agreement shall terminate upon the termination of the Trust.

 

ARTICLE X

Miscellaneous Provisions

 

SECTION 10.01   Amendment.  The Agreement may be amended by the Seller,
the Servicer and the Owner Trustee, with the consent of the Indenture Trustee,
but without the consent of any of the Noteholders or the Certificateholder, to
cure any ambiguity, to correct or supplement any provision in this Agreement or
for the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions in this Agreement or of modifying in any
manner the rights of the Noteholders or the Certificateholder; provided,
however, that such action shall not, adversely affect in any material respect
the interests of any Noteholder or Certificateholder; provided further that 10
days prior written notice of any such amendment be given to each Rating Agency
and, if a Rating Agency notifies the Owner Trustee that such amendment will
result in a downgrading or withdrawal of the then current rating of any class
of the Notes or the Certificate, such amendment shall become effective with the
consent of the Holders of Notes evidencing not less than a majority of the
Outstanding Amount of the Notes and the consent of the Certificateholder;
provided further that any solicitation of such consent shall disclose the
downgrading or withdrawal that would result from such amendment.

 

This
Agreement may also be amended from time to time, with 10 days prior notice to
each of the Rating Agencies, by the Seller, the Servicer and the Owner Trustee,
with the consent of the Indenture Trustee, the consent of the Holders of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes and
the consent of the Holder of the Certificate, for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of the Noteholders or
the Certificateholder; provided, however, that no such amendment shall (a) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that shall be required
to be made for the benefit of the Noteholders or the Certificateholder or (b) reduce
the aforesaid percentage of the Outstanding Amount of the Notes and the
Certificate Balance, the Holders of which are required to consent to any such
amendment, without the consent of the Holders of all the outstanding Notes and
the consent of the Certificateholder.

 

41

 

Promptly
after the execution of any such amendment or consent, the Owner Trustee shall
furnish written notification of the substance of such amendment or consent to
the Certificateholder.

 

It
shall not be necessary for the consent of the Certificateholder or the
Noteholders pursuant to this Section to approve the particular form of any
proposed amendment or consent, but it shall be sufficient if such consent shall
approve the substance thereof.

 

Prior
to the execution of any amendment to this Agreement, the Owner Trustee and the
Indenture Trustee shall be entitled to receive and rely upon an Opinion of
Counsel stating that the execution of such amendment is authorized or permitted
by this Agreement and the Opinion of Counsel referred to in Section 10.02(i)(1) and
that all conditions precedent have been satisfied.  The Owner Trustee and the Indenture Trustee
may, but shall not be obligated to, enter into any such amendment which affects
the Owner Trustee’s or the Indenture Trustee’s, as applicable, own rights,
duties or immunities under this Agreement or otherwise.

 

SECTION 10.02   Protection of Title to Trust.

 

(a)           The
Seller shall file (and if required, authorize) such financing statements and
cause to be authorized and filed such continuation statements, all in such
manner and in such places as may be required by law fully to preserve,
maintain, and protect the interest of the Issuer and the interests of the
Indenture Trustee in the Receivables and in the proceeds thereof.  The Seller shall deliver (or cause to be
delivered) to the Owner Trustee and the Indenture Trustee file-stamped copies
of, or filing receipts for, any document filed as provided above, as soon as
available following such filing.

 

(b)           Neither
the Seller nor the Servicer shall change its name, identity, corporate
structure or jurisdiction of organization in any manner that would, could or
might make any financing statement or continuation statement filed in
accordance with paragraph (a) above seriously misleading within the
meaning of Section 9-506 of the UCC, unless it shall have given the Owner
Trustee and the Indenture Trustee at least five days’ prior written notice
thereof and shall have promptly filed appropriate new financing statements
and/or amendments to all previously filed financing statements or continuation
statements.

 

(c)           Each
of the Seller and the Servicer shall have an obligation to give the Owner
Trustee and the Indenture Trustee at least 60 days prior written notice of any
relocation of its jurisdiction of organization if, as a result of such
relocation, the applicable provisions of the UCC would require the filing of
any amendment of any previously filed financing or continuation statement or of
any new financing statement and shall promptly file any such amendment or new
financing statements as the case may be. 
The Servicer shall at all times maintain each office from which it shall
service Receivables, and its jurisdiction of organization, within the United
States of America.

 

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

 

42

 

Receivable and the amounts from time to time
deposited in the Collection Account in respect of such Receivable.

 

(e)           The
Servicer shall maintain its computer systems so that, from and after the time
of sale under this Agreement of the Receivables, the Servicer’s master computer
records (including any backup archives) that refer to a Receivable shall
indicate clearly the interest of the Issuer and the Indenture Trustee in such
Receivable and that such Receivable is owned by the Issuer and has been pledged
to the Indenture Trustee.  Indication of
the Issuer’s and the Indenture Trustee’s interest in a Receivable shall be
deleted from or modified on the Servicer’s computer systems when, and only
when, the related Receivable shall have been paid in full, purchased or
repurchased.

 

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

 

(g)           The
Servicer shall permit the Indenture Trustee and its agents at any time during
normal business hours to inspect, audit and make copies of and abstracts from
the Servicer’s records regarding any Receivable.

 

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

 

(i)            The
Servicer shall deliver to the Owner Trustee and the Indenture Trustee:

 

(1)           promptly after the execution and
delivery of this Agreement and of each amendment thereto, an Opinion of Counsel
either (A) stating that, in the opinion of such counsel, all financing
statements and continuation statements have been executed and filed that are
necessary fully to preserve and protect the interest of the Owner Trustee and
the Indenture Trustee in the Receivables, and reciting the details of such
filings or referring to prior Opinions of Counsel in which such details are
given, or (B) stating that, in the opinion of such counsel, no such action
shall be necessary to preserve and protect such interest; and

 

(2)           within 90 days after the beginning of
each calendar year beginning with the first calendar year beginning more than
three months after the Cut-off Date, an Opinion of Counsel, dated as of a date
during such 90-day period, either (A) stating that, in the opinion of such
counsel, all financing statements and continuation statements have been
executed and filed that are necessary fully to preserve and protect the
interest of the Owner Trustee and the Indenture Trustee in the Receivables, and
reciting the details of

 

43

 

such filings or referring
to prior Opinions of Counsel in which such details are given, or (B) stating
that, in the opinion of such counsel, no such action shall be necessary to
preserve and protect such interest.

 

Each
Opinion of Counsel referred to in clause (1) or (2) above shall
specify any action necessary (as of the date of such opinion) to be taken in
the following year to preserve and protect such interest.

 

(j)            The
Seller shall, to the extent required by applicable law, cause the Certificate
and the Notes to be registered with the Commission pursuant to Section 12(b) or
Section 12 (g) of the Exchange Act within the time periods specified
in such sections.

 

SECTION 10.03   Notices.  All demands, notices, instructions and
communications upon or to the Seller, the Servicer, the Owner Trustee, the
Indenture Trustee or the Rating Agencies under this Agreement shall be in
writing, personally delivered, sent by facsimile or mailed by certified mail,
return receipt requested, and shall be deemed to have been duly given upon
receipt (a) in the case of the Seller, to John Deere Receivables, Inc.,
1 East First Street, Suite 600, Reno, Nevada 89501, Attention:  Manager (702-786-5914), with a copy to
Assistant Treasurer, Deere & Company, One John Deere Place, Moline,
Illinois 61265-8098 (309-765-5697), (b) in the case of the Servicer, to
John Deere Capital Corporation, 1 East First Street, Suite 600, Reno,
Nevada 89501, Attention:  Manager (702-786-5527),
with a copy to Assistant Treasurer, Deere & Company, One John Deere
Place, Moline, Illinois 61265-8098 (309-765-5697), (c) in the case of the
Issuer or the Owner Trustee, at the Corporate Trust Office (as defined in the
Trust Agreement), (d) in the case of the Indenture Trustee, at the
Corporate Trust Office, (e) in the case of Moody’s, to Moody’s Investors
Service, Inc., ABS Monitoring Department, 99 Church Street, New York, New
York 10007, and (f) in the case of Standard & Poor’s, to Standard &
Poor’s Ratings Services, 55 Water Street, 40th Floor, New York, New York 10041,
Attention of Asset Backed Surveillance Department; or, as to each of the
foregoing, at such other address as shall be designated by written notice to
the other parties.

 

SECTION 10.04   Assignment.  Notwithstanding anything to the contrary
contained herein, except as provided in Sections 6.04 and 7.03 and as provided
in the provisions of this Agreement concerning the resignation of the Servicer,
this Agreement may not be assigned by the Seller or the Servicer.

 

44

 

SECTION 10.05   Limitations on Rights of Others.  The provisions of this Agreement are solely
for the benefit of the Seller, the Servicer, the Issuer, the Owner Trustee, the
Certificateholder, the Indenture Trustee and the Noteholders and nothing in
this Agreement, whether express or implied, shall be construed to give to any
other Person any legal or equitable right, remedy or claim in the Owner Trust
Estate or under or in respect of this Agreement or any covenants, conditions or
provisions contained herein.

 

SECTION 10.06   Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

SECTION 10.07   Separate Counterparts.  This Agreement may be executed by the parties
hereto in separate counterparts, each of which when so executed and delivered
shall be an original, but all such counterparts shall together constitute but
one and the same instrument.

 

SECTION 10.08   Headings.  The headings of the various Articles and
Sections herein are for convenience of reference only and shall not define or
limit any of the terms or provisions hereof.

 

SECTION 10.09   Governing Law.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

SECTION 10.10   Assignment to Indenture Trustee.  The Seller hereby acknowledges and consents
to any mortgage, pledge, assignment and grant of a security interest by the
Issuer to the Indenture Trustee pursuant to the Indenture for the benefit of
the Noteholders of all right, title and interest of the Issuer in, to and under
the Receivables and/or the assignment of any or all of the Issuer’s rights and
obligations hereunder to the Indenture Trustee.

 

SECTION 10.11   Nonpetition Covenants.

 

(a)           Notwithstanding
any prior termination of this Agreement, the Servicer and the Seller shall not,
prior to the date which is one year and one day after the termination of this
Agreement with respect to the Issuer, acquiesce, petition or otherwise invoke
or cause the Issuer to invoke the process of any court or government authority
for the purpose of commencing or sustaining a case against the Issuer under any
Federal or State bankruptcy, insolvency or similar law or appointing a
receiver, liquidator, assignee, trustee, custodian, sequestrator or other
similar official of the Issuer or any substantial part of its property, or
ordering the winding up or liquidation of the affairs of the Issuer.

 

(b)           Notwithstanding
any prior termination of this Agreement, the Servicer shall not, prior to the
date which is one year and one day after there has been paid in full all debt
issued by any securitization vehicle in respect of which the Seller holds any
interest, acquiesce, petition or otherwise invoke or cause the Seller to invoke
the process of any court or government authority for the purpose of commencing
or sustaining a case against the Seller under any Federal or State bankruptcy,
insolvency or similar law or appointing a receiver, liquidator,

 

45

 

assignee, trustee, custodian, sequestrator or
other similar official of the Seller or any substantial part of its property,
or ordering the winding up or liquidation of the affairs of the Seller.

 

SECTION 10.12   Limitation of Liability of Owner Trustee
and Indenture Trustee.

 

(a)           Notwithstanding
anything contained herein to the contrary, this Agreement has been
countersigned by U.S. Bank Trust National Association not in its individual
capacity but solely in its capacity as Owner Trustee of the Issuer and in no
event shall U.S. Bank Trust National Association in its individual capacity
have any liability for the representations, warranties, covenants, agreements
or other obligations of the Issuer hereunder or in any of the certificates,
notices or agreements delivered pursuant hereto, as to all of which recourse
shall be had solely to the assets of the Issuer.  For all purposes of this Agreement, in the
performance of its duties or obligations hereunder or in the performance of any
duties or obligations of the Issuer hereunder, the Owner Trustee shall be
subject to, and entitled to the benefits of, the terms and provisions of
Articles VI, VII and VIII of the Trust Agreement.

 

(b)           Notwithstanding
anything contained herein to the contrary, this Agreement has been accepted by
The Bank of New York not in its individual capacity but solely as Indenture
Trustee and in no event shall The Bank of New York have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer.

 

SECTION 10.13   Additional Securities.  The issuance of any securities by John Deere
Receivables, Inc., other than the Notes and the Certificate, will require
satisfaction of the Rating Agency Condition.

 

46

 

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

 

	
   

  	
  JOHN DEERE OWNER
  TRUST 2005

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  U.S. Bank Trust
  National Association,

  not in its individual capacity but solely as

  Owner Trustee on behalf of the Trust,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Melissa A.
  Rosal

  	
   

  
	
   

  	
   

  	
  Name: Melissa A.
  Rosal

  
	
   

  	
   

  	
  Title: Vice
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOHN DEERE
  RECEIVABLES, INC.,

  Seller,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Keith R.
  Knight

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Keith R. Knight

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOHN DEERE
  CAPITAL CORPORATION,

  Servicer,

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven E.
  Warren

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Steven E. Warren

  
	
   

  	
   

  	
  Title:

  	
  Assistant
  Treasurer

  
							

 

 

	
  Acknowledged and
  Accepted:

  
	
   

  
	
  The Bank of New
  York,

  not in its individual

  capacity but solely

  as Indenture Trustee,

  
	
   

  
	
   

  
	
  By:

  	
  /s/ Jonathan
  Farber

  	
   

  
	
   

  	
  Name: Jonathan
  Farber

  
	
   

  	
  Title: Assistant
  Vice President

  

 

 

SCHEDULE A

 

Schedule of Receivables

 

(Delivered to the Trust at the Closing)

 

 

SCHEDULE B

 

Location of Receivable Files

Suite 600

1 East First Street

Reno, Nevada 89501

 

 

SCHEDULE C

 

LIST OF FISCAL MONTHS

FISCAL MONTH CUTOFF DATES (BY FISCAL YEAR)

 

	
  Fiscal

  Month

  	
   

  	
  Calendar

  Month

  	
   

  	
  2005

  	
   

  	
  2006

  	
   

  	
  2007

  	
   

  	
  2008

  	
   

  	
  2009

  	
   

  	
  2010

  	
   

  	
  2011

  	
   

  	
  2012

  
	
  1

  	
   

  	
  November

  	
   

  	
  —

  	
   

  	
  27-Nov-05

  	
   

  	
  26-Nov-06

  	
   

  	
  25-Nov-07

  	
   

  	
  30-Nov-08

  	
   

  	
  29-Nov-09

  	
   

  	
  28-Nov-10

  	
   

  	
  27-Nov-11

  
	
  2

  	
   

  	
  December

  	
   

  	
  —

  	
   

  	
  25-Dec-05

  	
   

  	
  24-Dec-06

  	
   

  	
  23-Dec-07

  	
   

  	
  28-Dec-08

  	
   

  	
  27-Dec-09

  	
   

  	
  26-Dec-10

  	
   

  	
  25-Dec-11

  
	
  3

  	
   

  	
  January

  	
   

  	
  —

  	
   

  	
  29-Jan-06

  	
   

  	
  28-Jan-07

  	
   

  	
  27-Jan-08

  	
   

  	
  01-Feb-09

  	
   

  	
  31-Jan-10

  	
   

  	
  30-Jan-11

  	
   

  	
  29-Jan-12

  
	
  4

  	
   

  	
  February

  	
   

  	
  —

  	
   

  	
  26-Feb-06

  	
   

  	
  25-Feb-07

  	
   

  	
  24-Feb-08

  	
   

  	
  01-Mar-09

  	
   

  	
  28-Feb-10

  	
   

  	
  27-Feb-11

  	
   

  	
  26-Feb-12

  
	
  5

  	
   

  	
  March

  	
   

  	
  —

  	
   

  	
  26-Mar-06

  	
   

  	
  25-Mar-07

  	
   

  	
  23-Mar-08

  	
   

  	
  29-Mar-09

  	
   

  	
  28-Mar-10

  	
   

  	
  27-Mar-11

  	
   

  	
  25-Mar-12

  
	
  6

  	
   

  	
  April

  	
   

  	
  —

  	
   

  	
  30-Apr-06

  	
   

  	
  29-Apr-07

  	
   

  	
  27-Apr-08

  	
   

  	
  03-May-09

  	
   

  	
  02-May-10

  	
   

  	
  01-May-11

  	
   

  	
  29-Apr-12

  
	
  7

  	
   

  	
  May

  	
   

  	
  29-May-05

  	
   

  	
  28-May-06

  	
   

  	
  27-May-07

  	
   

  	
  25-May-08

  	
   

  	
  31-May-09

  	
   

  	
  30-May-10

  	
   

  	
  29-May-11

  	
   

  	
  27-May-12

  
	
  8

  	
   

  	
  June

  	
   

  	
  26-Jun-05

  	
   

  	
  25-Jun-06

  	
   

  	
  24-Jun-07

  	
   

  	
  22-Jun-08

  	
   

  	
  28-Jun-09

  	
   

  	
  27-Jun-10

  	
   

  	
  26-Jun-11

  	
   

  	
  24-Jun-12

  
	
  9

  	
   

  	
  July

  	
   

  	
  31-Jul-05

  	
   

  	
  30-Jul-06

  	
   

  	
  29-Jul-07

  	
   

  	
  27-Jul-08

  	
   

  	
  02-Aug-09

  	
   

  	
  01-Aug-10

  	
   

  	
  31-Jul-11

  	
   

  	
  29-Jul-12

  
	
  10

  	
   

  	
  August

  	
   

  	
  28-Aug-05

  	
   

  	
  27-Aug-06

  	
   

  	
  26-Aug-07

  	
   

  	
  24-Aug-08

  	
   

  	
  30-Aug-09

  	
   

  	
  29-Aug-10

  	
   

  	
  28-Aug-11

  	
   

  	
  26-Aug-12

  
	
  11

  	
   

  	
  September

  	
   

  	
  25-Sep-05

  	
   

  	
  24-Sep-06

  	
   

  	
  23-Sep-07

  	
   

  	
  28-Sep-08

  	
   

  	
  27-Sep-09

  	
   

  	
  26-Sep-10

  	
   

  	
  25-Sep-11

  	
   

  	
  23-Sep-12

  
	
  12

  	
   

  	
  October

  	
   

  	
  31-Oct-05

  	
   

  	
  31-Oct-06

  	
   

  	
  31-Oct-07

  	
   

  	
  31-Oct-08

  	
   

  	
  31-Oct-09

  	
   

  	
  31-Oct-10

  	
   

  	
  31-Oct-11

  	
   

  	
  31-Oct-12

  

 

 

SCHEDULE D

 

Servicer’s Certificate

 

The undersigned
hereby certify that (i) they are, respectively, a duly elected Vice
President and Assistant Secretary of John Deere Capital Corporation and (ii) this
Servicing Certificate complies with the requirements of, and is being delivered
pursuant to, Section 4.09 of the Sale and Servicing Agreement (the “Sale
and Servicing Agreement”) dated as of May 15, 2005 between John Deere
Owner Trust 2005, John Deere Receivables, Inc. and John Deere Capital
Corporation.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
				

 

 

	
  Payment Date:

  	
                                                             

  	
   

  

 

(1)           Servicing
Fee:

(2)           Administration
Fee:

(3)           Total
Distribution Amount:

(4)           Accrued
and unpaid interest on the Notes:

(5)           Note
Monthly Principal Distributable Amount:

(6)           Deposit
to Reserve Account from Collection Account to increase the amount on deposit in
the Reserve Account to the Specified Reserve Account Balance:

(7)           Deposit
of Excess to Reserve Account from Collection Account:

(8)           Specified
Reserve Account Balance (before any distributions of excess):

(9)           Reserve
Account Balance over the Specified Reserve Account Balance (before any
distributions of excess):

(10)         Excess
Reserve Account Balance distributable to Seller 

(5.05 (b) (i) or (ii))

(11)         Certificate
Monthly Principal Distributable Amount:

(12)         Amount
to be withdrawn from the Reserve Account and deposited into the Note
Distribution Account

(5.05(c)):

Interest
amount included in above figure:

Principal
amount included in above figure:

(13)         (a)           Pool
Balance as of the close of business on the last day of the related
Collection Period:

(b)           Note
Value at the end of the related Collection Period:

(c)           Number
of Accounts at the end of the related Collection Period:

(14)         Outstanding
Principal Balance of Class A-1 Notes:

Outstanding
Principal Balance of Class A-2 Notes:

Outstanding
Principal Balance of Class A-3 Notes:

Outstanding
Principal Balance of Class A-4 Notes:

Outstanding
Principal Balance of the Certificate:

(15)         Aggregate
amount of Purchased Receivables for related Collection Period:

(16)         Reserve
Account Balance after giving effect to all distributions:

(17)         Specified
Reserve Account Balance (after all distributions and adjustments):

 

 

Officer’s Certificate

 

The
undersigned hereby certify that (i) they are, respectively, a duly elected
Vice President and Assistant Secretary of John Deere Capital Corporation, (ii) Schedule E
hereto complies with the requirements of, and is being delivered pursuant to, Section 5.06(a) of
the Sale and Servicing Agreement (the “Sale and Servicing Agreement”) dated as
of May 15, 2005 between John Deere Owner Trust 2005, John Deere
Receivables, Inc. and John Deere Capital Corporation, (iii) Schedule F
hereto complies with the requirements of, and is delivered pursuant to, Section 5.06(b) of
the Sale and Servicing Agreement, and (iv) Schedule G hereto complies
with the requirements of, and is being delivered pursuant to, Section 5.04(b) of
the Sale and Servicing Agreement.

 

	
  Dated:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  
				

 

 

SCHEDULE E

 

Statement to Certificateholder 

pursuant to Section 5.06(a)

 

	
  Payment Date:

  	
                                                             

  	
   

  

 

(1)           Amount of
principal being paid or distributed:

 

(a)           Class A-1
Notes: 

per $1,000 original principal amount:

 

(b)           Class A-2
Notes: 

per $1,000 original principal amount:

 

(c)           Class A-3
Notes: 

per $1,000 original principal amount:

 

(d)           Class A-4
Notes: 

per $1,000 original principal amount:

 

(e)           Certificate:

per $1,000 original principal amount:

 

(f)            Total:

 

(2)           (a)           Amount
of interest being paid or distributed:

 

(i)            Class A-1
Notes: 

per $1,000 original principal amount:

 

(ii)           Class A-2
Notes: 

per $1,000 original principal amount:

 

(iii)          Class A-3
Notes: 

per $1,000 original principal amount:

 

(iv)          Class A-4
Notes: 

per $1,000 original principal amount:

 

(v)           Total:

 

(3)           (a)           Pool
Balance at end of related Collection Period:

 

(b)           Note
Value at end of related Collection Period:

 

(c)           Pool
Face Amount at the end of related Collection Period:

 

 

(4)           After
giving effect to distributions on this Payment Date:

 

(a)           (i)            Outstanding
principal amount of Class A-1 Notes:

 

(ii)           Outstanding principal
amount of Class A-2 Notes:

 

(iii)          Outstanding
principal amount of Class A-3 Notes:

 

(iv)          Outstanding
principal amount of Class A-4 Notes:

 

(b)           Certificate
Balance:

 

(5)           Amount
of Servicing Fee: 

per $1,000 original principal amount of Notes and Certificate:

 

(6)           Amount of
Administration Fee:

 

(7)           Aggregate
Purchase Amounts for Collection Period:

 

(8)           (i)            Amount
in Reserve Account:

 

(ii)           Specified
Reserve Account Balance:

 

(9)           (i)            Scheduled
Payments of Receivables 60 days or more past due:

 

(ii)           Scheduled
Payments of Receivables 60 days or more past due as a percent of the Pool
Balance, at the end of the related Collection Period:

 

(10)         (i)            Face
Amount of Receivables 60 days or more past due:

 

(ii)           Face
Amount of Receivables 60 days or more past due as a percent of the Pool Face
Amount at the end of the related Collection Period:

 

 

SCHEDULE F

 

Statement for Noteholders 

pursuant to Section 5.06(b)

 

	
  Payment Date:

  	
                                                            

  	
   

  

 

(1)           Amount of
principal being paid on Notes:

 

(a)           Class A-1 Notes:

per $1,000 original principal amount:

 

(b)           Class A-2 Notes:

per $1,000 original principal amount:

 

(c)           Class A-3 Notes:

per $1,000 original principal amount:

 

(d)           Class A-4 Notes:

per $1,000 original principal amount:

 

(e)           Total:

 

(2)           (a)           Amount
of interest being paid on Notes:

 

(i)            Class A-1 Notes:

per $1,000 original principal amount:

 

(ii)           Class A-2 Notes:

per $1,000 original principal amount:

 

(iii)          Class A-3 Notes:

per $1,000 original principal amount:

 

(iv)          Class A-4 Notes:

per $1,000 original principal amount:

 

(v)           Total:

 

(3)           (a)           Pool
Balance at end of related Collection Period:

 

(b)           Note Value at end of related Collection Period:

 

(c)           Pool
Face Amount at the end of related Collection Period:

 

 

(4)           After
giving effect to distributions on this Payment Date:

 

(a)                                  (i)            Outstanding
principal amount of Class A-1 Notes:

(ii)           Outstanding
principal amount of Class A-2 Notes:

(iii)          Outstanding
principal amount of Class A-3 Notes:

(iv)          Outstanding
principal amount of Class A-4 Notes:

 

(b)           Certificate
Balance:

 

(5)           Amount
of Servicing Fee:

per $1,000 original principal amount of

Notes and Certificate:

 

(6)           Amount
of Administration Fee:

 

(7)           Aggregate
Purchase Amounts for Collection Period:

 

(8)           (i)            Amount
in Reserve Account:

 

(ii)           Specified
Reserve Account Balance:

 

(9)           (i)            Scheduled
Payments of Receivables 60 days or more past due:

 

(ii)           Scheduled
Payments of Receivables 60 days or more past due as a percent of the Pool
Balance, at the end of the related Collection Period:

 

(10)         (i)            Face
Amount of Receivables 60 days or more past due:

 

(ii)           Face
Amount of Receivables 60 days or more past due as a percent of the Pool Face
Amount at the end of the related Collection Period:

 

 

SCHEDULE G

 

Instructions to the Trustee for payments and deposits
pursuant to Section 5.04 (b) of the Sale and Servicing Agreement:

 

Payment Date:                                    

 

(i)            Payment
of Servicing Fee (including any previously 

unpaid Servicing Fees) to Servicer:                                    

 

(ii)           Payment
of Administration Fee to Administrator:                                    

 

(iii)          Accrued
and unpaid interest on the Notes for such 

Payment Date:                                    

 

(iv)          Note
Monthly Principal Distributable Amount to be deposited into 

Note Distribution Account:                                    

 

(v)           Deposit
to Reserve Account to increase the amounts on deposit in the Reserve Account to
the Specified Reserve Account Balance:                                    

 

(vi)          Certificate
Monthly Principal Distributable Amount to be deposited into Certificate

Distribution Account:                                    

 

(vii)         Deposit
to Reserve Account:EXHIBIT 4.4

 

ADMINISTRATION
AGREEMENT, dated as of May 15, 2005, among JOHN DEERE OWNER TRUST 2005, a
Delaware statutory trust (the “Issuer”), JOHN DEERE CAPITAL CORPORATION,
a Delaware corporation, as administrator (the “Administrator”), and The
Bank of New York, a New York banking corporation, not in its individual
capacity but solely as indenture trustee (the “Indenture Trustee”).

 

W I T N E S S E T H

 

WHEREAS,
the Issuer is issuing the Class A-1 3.396% Asset Backed Notes (the “A-1
Notes”), the Class A-2 3.79% Asset Backed Notes (the “A-2 Notes”),
the Class A-3 3.98% Asset Backed Notes (the “A-3 Notes”) and the Class A-4
4.16% Asset Backed Notes (the “A-4 Notes” and together with the A-1
Notes, A-2 Notes and A-3 Notes, the “Notes”) pursuant to the Indenture,
dated as of May 15, 2005 (as amended, modified or supplemented from time
to time in accordance with the provisions thereof, the “Indenture”),
between the Issuer and the Indenture Trustee. 
Capitalized terms used herein and not defined herein shall have the
meanings assigned such terms in the Indenture);

 

WHEREAS,
the Issuer has entered into certain agreements in connection with the issuance
of the Notes and the issuance of certain beneficial ownership interests of the
Issuer, including (i) a Sale and Servicing Agreement, dated as of May 15,
2005 (the “Sale and Servicing Agreement”), among the Issuer, John Deere
Capital Corporation, as Servicer, and John Deere Receivables, Inc., a
Nevada corporation, as seller (the “Seller”), (ii) a Depository
Agreement, dated May 26, 2005 (the “Depository Agreement”), among
the Issuer and The Depository Trust Company, (iii) the Indenture and (iv) a
Trust Agreement, dated as of May 15, 2005 (the “Trust Agreement”),
between the Seller and U.S. Bank Trust National Association, as owner trustee
(the “Owner Trustee”) (the Sale and Servicing Agreement, the Depository
Agreement, the Indenture and the Trust Agreement being hereinafter referred to
collectively as the “Related Agreements”);

 

WHEREAS,
pursuant to the Related Agreements, the Issuer and the Owner Trustee are
required to perform certain duties in connection with (a) the Notes and
the collateral therefor pledged pursuant to the Indenture (the “Collateral”)
and (b) the beneficial ownership interests in the Issuer (the holders of
such interests being referred to herein as the “Owners”);

 

WHEREAS,
the Issuer and the Owner Trustee desire to have the Administrator perform
certain of the duties of the Issuer and the Owner Trustee referred to in the
preceding clause, and to provide such additional services consistent with the
terms of this Agreement and the Related Agreements as the Issuer and the Owner
Trustee may from time to time request; and

 

WHEREAS,
the Administrator has the capacity to provide the services required hereby and
is willing to perform such services for the Issuer and the Owner Trustee on the
terms set forth herein.

 

 

NOW,
THEREFORE, in consideration of the mutual covenants contained herein, and other
good and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, the parties agree as follows:

 

1.                                       Duties of the Administrator.

 

(a)                                  Duties with Respect to the
Depository Agreement and the Indenture.

 

(i)                                     The Administrator agrees to
perform all its duties as Administrator and the duties of the Issuer and the
Owner Trustee under the Depository Agreement. 
In addition, the Administrator shall consult with the Owner Trustee
regarding the duties of the Issuer under the Indenture and the Depository
Agreement.  The Administrator shall
monitor the performance of the Issuer or the Owner Trustee and shall advise the
Owner Trustee when action is necessary to comply with the Issuer’s or the Owner
Trustee’s duties under the Indenture or the Depository Agreement.  The Administrator shall prepare for execution
by the Issuer or the Owner Trustee or shall cause the preparation by other
appropriate persons of all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Issuer or the Owner
Trustee to prepare, file or deliver pursuant to the Indenture or the Depository
Agreement.  In furtherance of the
foregoing, the Administrator shall take all appropriate action that it is the
duty of the Issuer or the Owner Trustee to take pursuant to the Indenture
including, without limitation, such of the foregoing as are required with
respect to the following matters under the Indenture (references are to
sections of the Indenture):

 

(A)                              the
duty to cause the Note Register to be kept and to give the Indenture Trustee
notice of any appointment of a new Note Registrar and the location, or change
in location, of the Note Register (Section 2.04);

 

(B)                                the
notification of Noteholders of the final principal payment on their Notes (Section 2.07(b));

 

(C)                                the
fixing or causing to be fixed of any special record date and the notification
of the Indenture Trustee and Noteholders with respect to special payment dates,
if any (Section 2.07(c));

 

(D)                               the
preparation of or obtaining of the documents and instruments required for
authentication of the Notes and delivery of the same to the Indenture Trustee (Section 2.02);

 

(E)                                 the
preparation, obtaining or filing of the instruments, opinions and certificates
and other documents required for the release of collateral (Section 2.09);

 

(F)                                 the
duty to cause newly appointed Paying Agents, if any, to deliver to the
Indenture Trustee the instrument specified in the Indenture regarding funds
held in trust (Section 3.03);

 

(G)                                the
direction to the Indenture Trustee to deposit monies with Paying Agents, if
any, other than the Indenture Trustee (Section 3.03);

 

2

 

(H)                               the
obtaining and preservation of the Issuer’s qualification to do business in each
jurisdiction in which such qualification is or shall be necessary to protect
the validity and enforceability of the Indenture, the Notes, the Collateral and
each other instrument and agreement included in the Trust Estate (Section 3.04);

 

(I)                                    the
preparation of all supplements, amendments, financing statements, continuation
statements, instruments of further assurance and other instruments, in
accordance with Section 3.05 of the Indenture, necessary to protect the
Trust Estate (Section 3.05);

 

(J)                                   the
delivery of the Opinion of Counsel on the Closing Date and the annual delivery
of Opinions of Counsel, in accordance with Section 3.06 of the Indenture,
as to the Trust Estate, and the annual delivery of the Officers’ Certificate
and certain other statements, in accordance with Section 3.09 of the
Indenture, as to compliance with the Indenture (Sections 3.06 and 3.09);

 

(K)                               the
identification to the Indenture Trustee in an Officers’ Certificate of a Person
with whom the Issuer has contracted to perform its duties under the Indenture (Section 3.07(b));

 

(L)                                 the
notification of the Indenture Trustee and the Rating Agencies of a Servicer
Default pursuant to the Sale and Servicing Agreement and, if such Servicer
Default arises from the failure of the Servicer to perform any of its duties
under the Sale and Servicing Agreement, the taking of all reasonable steps
available to remedy such failure (Section 3.07(d));

 

(M)                            the
preparation and obtaining of documents and instruments required for the release
of the Issuer from its obligation under the Indenture (Section 3.10);

 

(N)                               the
delivery of notice to the Indenture Trustee of each Event of Default and each
default by the Servicer or Seller under the Sale and Servicing Agreement (Section 3.19);

 

(O)                               the
monitoring of the Issuer’s obligations as to the satisfaction and discharge of
the Indenture and the preparation of an Officers’ Certificate and the obtaining
of the Opinion of Counsel and the Independent Certificate relating thereto (Section 4.01);

 

(P)                                 the
compliance with any written directive of the Indenture Trustee with respect to
the sale of the Trust Estate in a commercially reasonable manner if an Event of
Default shall have occurred and be continuing (Section 5.04);

 

(Q)                               the
preparation and delivery of notice to Noteholders of the removal of the
Indenture Trustee and the appointment of a successor Indenture Trustee (Section 6.08);

 

(R)                                the
preparation of any written instruments required to confirm more fully the
authority of any co-trustee or separate trustee and any written instruments
necessary

 

3

 

in connection
with the resignation or removal of any co-trustee or separate trustee (Sections
6.08 and 6.10);

 

(S)                                 the
furnishing of the Indenture Trustee with the names and addresses of Noteholders
during any period when the Indenture Trustee is not the Note Registrar (Section 7.01);

 

(T)                                the
preparation and filing with the Commission, any applicable State agencies and
the Indenture Trustee of documents required to be filed on a periodic basis
with, and summaries thereof as may be required by rules and regulations
prescribed by, the Commission and any applicable State agencies and the
transmission of such summaries, as necessary, to the Noteholders (including,
without limitation, the preparation, execution and filing of all certificates
or other documents required to be delivered by the Trust pursuant to the
Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated
thereunder unless otherwise required by law or regulation) (Section 7.03);

 

(U)                               the
opening of one or more accounts in the Trust’s name, the preparation of Issuer
Orders, Officers’ Certificates and Opinions of Counsel and all other actions
necessary with respect to investment and reinvestment of funds in the Trust
Accounts (Sections 8.02 and 8.03);

 

(V)                                the
preparation of an Issuer Request and Officers’ Certificate and the obtaining of
an Opinion of Counsel and Independent Certificates, if necessary, for the
release of the Trust Estate as defined in the Indenture (Sections 8.04 and
8.05);

 

(W)                           the
preparation of Issuer Orders and the obtaining of Opinions of Counsel with
respect to the execution of supplemental indentures and the mailing to the
Noteholders of notices with respect to such supplemental indentures
(Sections 9.01, 9.02 and 9.03);

 

(X)                               the
preparation and, after execution by the Owner Trustee on behalf of the Issuer,
delivery of new Notes conforming to any supplemental indenture (Section 9.06);

 

(Y)                                the
notification of Noteholders of redemption of the Notes or the duty to cause the
Indenture Trustee to provide such notification (Section 10.02);

 

(Z)                                the
preparation and delivery of all Officers’ Certificates, Opinions of Counsel and
Independent Certificates with respect to any requests by the Issuer to the
Indenture Trustee to take any action under the Indenture (Section 11.01(a));

 

(AA)                    the
preparation and delivery of Officers’ Certificates and the obtaining of
Independent Certificates, if necessary, for the release of property from the
lien of the Indenture (Section 11.01(b));

 

(BB)                        the
notification of the Rating Agencies, upon the failure of the Indenture Trustee
to give such notification, of the information required pursuant to Section 11.04
(Section 11.04);

 

4

 

(CC)                        the
preparation and delivery to Noteholders and the Indenture Trustee of any
agreements with respect to alternate payment and notice provisions (Section 11.06);
and

 

(DD)                      the
recording of the Indenture, if applicable (Section 11.15).

 

(ii)                                  The Administrator (other than at
any time when the Indenture Trustee, in the capacity as successor Servicer, is
also acting as successor Administrator) will:

 

(A)                              pay
the Indenture Trustee from time to time reasonable compensation for all
services rendered by the Indenture Trustee under the Indenture (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

 

(B)                                except
as otherwise expressly provided in the Indenture, reimburse the Indenture
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Indenture Trustee in accordance with any
provision of the Indenture (including the reasonable compensation, expenses and
disbursements of its agents and either in-house counsel or outside counsel, but
not both), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith;

 

(C)                                indemnify
the Indenture Trustee and its agents for, and hold them harmless against, any
losses, liability or expense incurred without negligence or bad faith on their
part, arising out of or in connection with the acceptance or administration of
the transactions contemplated by the Indenture, including the reasonable costs
and expenses of defending themselves against any claim or liability in
connection with the exercise or performance of any of their powers or duties
under the Indenture;

 

(D)                               pay
the Owner Trustee from time to time reasonable compensation for all services
rendered by the Owner Trustee under the Trust Agreement (which compensation
shall not be limited by any provision of law in regard to the compensation of a
trustee of an express trust);

 

(E)                                 except
as otherwise expressly provided in the Trust Agreement, reimburse the Owner
Trustee upon its request for all reasonable expenses, disbursements and
advances incurred or made by the Owner Trustee in accordance with any provision
of the Trust Agreement (including the reasonable compensation, expenses and
disbursements of its agents and either in-house counsel or outside counsel, but
not both), except any such expense, disbursement or advance as may be
attributable to its negligence or bad faith; and

 

(F)                                 indemnify
the Owner Trustee and its agents for, and to hold them harmless against, any
losses, liability or expense incurred without negligence or bad faith on their
part, arising out of or in connection with the acceptance or administration of
the transactions contemplated by the Trust Agreement, including the reasonable
costs and expenses of defending themselves against any claim or liability in
connection with the exercise or performance of any of their powers or duties
under the Trust Agreement.

 

5

 

(b)                                 Additional Duties.

 

(i)                                     In addition to the duties of the
Administrator set forth above, the Administrator shall perform such
calculations and shall prepare or shall cause the preparation by other
appropriate Persons of all such documents, reports, filings, instruments,
certificates and opinions as it shall be the duty of the Issuer or the Owner
Trustee to prepare, file or deliver pursuant to the Related Agreements, and at
the request of the Owner Trustee shall take all appropriate action that it is
the duty of the Issuer or the Owner Trustee to take pursuant to the Related
Agreements.

 

(ii)                                  Notwithstanding anything in this
Agreement or the Related Agreements to the contrary, the Administrator shall be
responsible for performance of the duties of the Owner Trustee set forth in Section 5.05
of the Trust Agreement with respect to, among other things, accounting and
reports to the Owner.

 

(iii)                               The Administrator shall perform
the duties of the Administrator specified in Section 10.02 of the Trust
Agreement required to be performed in connection with the resignation or
removal of the Owner Trustee, and any other duties expressly required to be
performed by the Administrator under the Trust Agreement.

 

(iv)                              In carrying out the foregoing
duties or any of its other obligations under this Agreement, the Administrator
may enter into transactions with or otherwise deal with any of its affiliates; provided,
however, that the terms of any such transactions or dealings shall be in
accordance with any directions received from the Issuer and shall be, in the
Administrator’s opinion, no less favorable to the Issuer than would be
available from unaffiliated parties.

 

(v)                                 The Administrator hereby agrees
to execute on behalf of the Issuer all such documents, reports, filings,
instruments, certificates and opinions as it shall be the duty of the Issuer to
prepare, file or deliver pursuant to the Basic Documents.

 

(c)                                  Non-Ministerial Matters.

 

(i)                                     With respect to matters that in
the reasonable judgment of the Administrator are non-ministerial, the
Administrator shall not take any action unless within a reasonable time before
the taking of such action, the Administrator shall have notified the Owner
Trustee and the Indenture Trustee of the proposed action and the Owner Trustee
and the Indenture Trustee shall not have withheld consent or provided an
alternative direction.  For the purpose
of the preceding sentence, “non-ministerial matters” shall include, without
limitation:

 

(A)                              the
amendment of or any supplement to the Indenture;

 

(B)                                the
initiation of any claim or lawsuit by the Issuer and the compromise of any
action, claim or lawsuit brought by or against the Issuer;

 

(C)                                the
amendment, change or modification of the Related Agreements;

 

(D)                               the
appointment of successor Note Registrars, successor Paying Agents and successor
Indenture Trustees pursuant to the Indenture or the appointment of successor
Administrators or successor Servicers, or the consent to the assignment by the

 

6

 

Note
Registrar, Paying Agent or Indenture Trustee of its obligations under the
Indenture; and

 

(E)                                 the
removal of the Indenture Trustee.

 

(ii)                                  Notwithstanding anything to the
contrary in this Agreement, the Administrator shall not be obligated to, and
shall not, (x) make any payments to the Noteholders under the Related
Agreements, (y) sell the Trust Estate pursuant to Section 5.04 of the
Indenture or (z) take any other action that the Issuer directs the
Administrator not to take on its behalf.

 

2.                                       Records.  The Administrator shall maintain appropriate
books of account and records relating to services performed hereunder, which
books of account and records shall be accessible for inspection by the Issuer,
the Owner Trustee and the Depositor and their respective agents at any time
during normal business hours.

 

3.                                       Compensation.  As compensation for the performance of the
Administrator’s obligations under this Agreement and as reimbursement for its
expenses related thereto, the Administrator shall be entitled to $100 per month
which shall be solely an obligation of the Issuer.

 

4.                                       Additional Information to Be
Furnished to the Issuer.  The Administrator shall furnish to the Issuer
from time to time such additional information regarding the Collateral as the
Issuer shall reasonably request.

 

5.                                       Independence of the
Administrator.  For all purposes of this Agreement, the
Administrator shall be an independent contractor and, except as set forth
herein, shall not be subject to the supervision of the Issuer or the Owner
Trustee with respect to the manner in which it accomplishes the performance of
its obligations hereunder.  Unless
expressly authorized by the Issuer, the Administrator shall have no authority
to act for or represent the Issuer or the Owner Trustee in any way and shall
not otherwise be deemed an agent of the Issuer or the Owner Trustee.

 

6.                                       No Joint Venture.  Nothing contained in this Agreement (i) shall
constitute the Administrator and either of the Issuer or the Owner Trustee as
members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (ii) shall be construed
to impose any liability as such on any of them or (iii) shall be deemed to
confer on any of them any express, implied or apparent authority to incur any
obligation or liability on behalf of the others.

 

7.                                       Other Activities of the Administrator.  Nothing herein shall prevent the
Administrator or its affiliates from engaging in other businesses or, in its
sole discretion, from acting in a similar capacity as an administrator for any
other person or entity even though such person or entity may engage in business
activities similar to those of the Issuer, the Owner Trustee or the Indenture
Trustee.

 

8.                                       Term of Agreement; Resignation
and Removal of the Administrator.

 

(a)                                  This Agreement shall continue in
force until the termination of the Issuer, upon which event this Agreement
shall automatically terminate.

 

7

 

(b)                                 Subject to Section 8(e),
the Administrator may resign its duties hereunder by providing the Issuer with
at least 60 days’ prior written notice.

 

(c)                                  Subject to Section 8(e),
the Issuer may remove the Administrator without cause by providing the
Administrator with at least 60 days’ prior written notice.

 

(d)                                 Subject to Section 8(e), at
the sole option of the Issuer, the Administrator may be removed immediately
upon written notice of termination from the Issuer to the Administrator if any
of the following events shall occur:

 

(i)                                     the Administrator shall default
in the performance of any of its duties under this Agreement and, after notice
of such default, shall not cure such default within ten days (or, if such
default cannot be cured in such time, shall not give within ten days such
assurance of cure as shall be reasonably satisfactory to the Issuer);

 

(ii)                                  a court having jurisdiction in
the premises shall enter a decree or order for relief, and such decree or order
shall not have been vacated within 60 days, in respect of the Administrator in
any involuntary case under any applicable bankruptcy, insolvency or other
similar law now or hereafter in effect or appoint a receiver, liquidator,
assignee, custodian, trustee, sequestrator or similar official for the
Administrator or any substantial part of its property or order the winding-up
or liquidation of its affairs; or

 

(iii)                               the Administrator shall commence
a voluntary case under any applicable bankruptcy, insolvency or other similar
law now or hereafter in effect, shall consent to the entry of an order for
relief in an involuntary case under any such law, or shall consent to the
appointment of a receiver, liquidator, assignee, trustee, custodian,
sequestrator or similar official for the Administrator or any substantial part
of its property, shall consent to the taking of possession by any such official
of any substantial part of its property, shall make any general assignment for
the benefit of creditors or shall fail generally to pay its debts as they
become due.

 

The
Administrator agrees that if any of the events specified in clause (ii) or
(iii) of this Section shall occur, it shall give written notice
thereof to the Issuer and the Indenture Trustee within seven days after the
happening of such event.

 

(e)                                  No resignation or removal of the
Administrator pursuant to this Section shall be effective until (i) a
successor Administrator shall have been appointed by the Issuer and (ii) such
successor Administrator shall have agreed in writing to be bound by the terms
of this Agreement in the same manner as the Administrator is bound hereunder;
provided, however, that, if a successor Administrator has not been appointed
and accepted its appointment hereunder as administrator (x) within 60 days
following delivery of the notice referred to in Section 8(b) or 8(c) or
(y) upon the removal of the Administrator pursuant to Section 8(d), then
the Servicer shall automatically become successor Administrator.

 

(f)                                    The appointment of any successor
Administrator shall be effective only after satisfaction of the Rating Agency
Condition with respect to the proposed appointment.

 

8

 

9.                                       Action upon Termination,
Resignation or Removal.  Promptly upon the effective date of
termination of this Agreement pursuant to Section 8(a) or the
resignation or removal of the Administrator pursuant to Section 8(b) or
(c), respectively, the Administrator shall be entitled to be paid all fees and
reimbursable expenses accruing to it to the date of such termination,
resignation or removal.  The
Administrator shall forthwith upon such termination pursuant to Section 8(a) deliver
to the Issuer all property and documents of or relating to the Collateral then
in the custody of the Administrator.  In
the event of the resignation or removal of the Administrator pursuant to Section 8(b) or
(c), respectively, the Administrator shall cooperate with the Issuer and take
all reasonable steps requested to assist the Issuer in making an orderly
transfer of the duties of the Administrator.

 

10.                                 Notices.  Any notice, report or other communication
given hereunder shall be in writing and addressed as follows:

 

(a)                                  if to the Issuer or the Owner
Trustee, to

 

John Deere Owner Trust 2005 

c/o U.S. Bank Trust National Association

209 S. LaSalle Street

Suite 300

Chicago, IL 60604

Attention: JDOT 2005

 

(b)                                 if to the Administrator, to

 

John Deere Capital
Corporation 

Suite 600 

1 East First Street 

Reno, NV  89501 

Attention:  Manager

 

with a copy to

 

Deere & Company 

One John Deere Place

Moline, IL  61265 

Attention:  Treasury Department,
Assistant Treasurer

 

(c)                                  if to the Indenture Trustee, to

 

The Bank of New York

101 Barclay Street, 8W

New York, New York 10286

Attention:  Asset Backed Finance Unit

 

or to such other address as any party shall have
provided to the other parties in writing. 
Any notice required to be in writing hereunder shall be deemed given if
such notice is mailed by

 

9

 

certified mail, postage prepaid, sent by facsimile or
hand-delivered to the address of such party as provided above, except that
notices to the Issuer, the Owner Trustee or the Indenture Trustee are effective
only upon receipt.

 

11.                                 Amendments.  This Agreement may be amended from time to
time by a written amendment duly executed and delivered by the Issuer, the
Administrator and the Indenture Trustee, with the written consent of the Owner
Trustee, without the consent of the Noteholders and the Certificateholder, for
the purpose of adding any provisions to or changing in any manner or
eliminating any of the provisions of this Agreement or of modifying in any
manner the rights of the Noteholders or the Certificateholder; provided that
such amendment will not, materially and adversely affect the interest of any
Noteholder or the Certificateholder; provided further that 10 days’ prior
written notice of any such amendment be given to each Rating Agency and, if a
Rating Agency notifies the Owner Trustee that such amendment will result in a
downgrading or withdrawal of the then current rating of any class of the Notes,
such amendment shall become effective with the consent of the Holders of Notes
evidencing not less than a majority of the Outstanding Amount of the Notes;
provided further, that any solicitation of such consent shall disclose the
downgrading or withdrawal that would result from such amendment.  This Agreement may also be amended by the
Issuer, the Administrator and the Indenture Trustee with the written consent of
the Owner Trustee and the holders of Notes evidencing at least a majority in
the Outstanding Amount of the Notes and the holder of the Certificate (which
consents, will not be unreasonably withheld) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of
this Agreement or of modifying in any manner the rights of Noteholders or the
Certificateholder; provided, however, that no such amendment may (i) increase
or reduce in any manner the amount of, or accelerate or delay the timing of,
collections of payments on Receivables or distributions that are required to be
made for the benefit of the Noteholders or the Certificateholder or (ii) reduce
the aforesaid percentage of the holders of Notes which are required to consent
to any such amendment or eliminate the consent of the Certificateholder,
without the consent of the holders of all the outstanding Notes and the
Certificate.  Notwithstanding the
foregoing, the Administrator may not amend this Agreement without the
permission of John Deere Receivables, Inc., as Depositor under the Trust
Agreement, which permission shall not be unreasonably withheld.

 

12.                                 Successors and Assigns.  This Agreement may not be assigned by the
Administrator unless such assignment is previously consented to in writing by
the Issuer and the Owner Trustee and subject to the satisfaction of the Rating
Agency Condition in respect thereof.  An
assignment with such consent and satisfaction, if accepted by the assignee,
shall bind the assignee hereunder in the same manner as the Administrator is
bound hereunder.  Notwithstanding the
foregoing, this Agreement may be assigned by the Administrator without the consent
of the Issuer or the Owner Trustee to a corporation or other organization that
is a successor (by merger, consolidation or purchase of assets) to the
Administrator, provided that such successor organization executes and delivers
to the Issuer, the Owner Trustee and the Indenture Trustee an agreement in
which such corporation or other organization agrees to be bound hereunder by
the terms of said assignment in the same manner as the Administrator is bound
hereunder.  Subject to the foregoing,
this Agreement shall bind any successors or assigns of the parties hereto.

 

13.                                 GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE

 

10

 

OBLIGATIONS, RIGHTS AND REMEDIES OF THE
PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

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

 

15.                                 Counterparts.  This Agreement may be executed in
counterparts, each of which when so executed shall together constitute but one
and the same agreement.

 

16.                                 Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall be ineffective to the
extent of such prohibition or unenforceability without invalidating the
remaining provisions hereof and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

17.                                 Not Applicable to John Deere
Capital Corporation in Other Capacities.  Nothing in this
Agreement shall affect any obligation John Deere Capital Corporation may have
in any other capacity.

 

18.                                 Limitation of Liability of the
Owner Trustee and the Indenture Trustee.

 

(a)                                  Notwithstanding anything
contained herein to the contrary, this instrument has been countersigned by
U.S. Bank Trust National Association not in its individual capacity but solely
in its capacity as Owner Trustee of the Issuer and in no event shall U.S. Bank
Trust National Association in its individual capacity or any beneficial owner
of the Issuer have any liability for the representations, warranties,
covenants, agreements or other obligations of the Issuer hereunder, as to all
of which recourse shall be had solely to the assets of the Issuer.  For all purposes of this Agreement, in the
performance of any duties or obligations of the Issuer hereunder, the Owner
Trustee shall be subject to, and entitled to the benefits of, the terms and
provisions of Articles VI, VII and VIII of the Trust Agreement.

 

(b)                                 Notwithstanding anything
contained herein to the contrary, this Agreement has been countersigned by The
Bank of New York not in its individual capacity but solely as Indenture
Trustee, and in no event shall The Bank of New York have any liability for the
representations, warranties, covenants, agreements or other obligations of the
Issuer hereunder or in any of the certificates, notices or agreements delivered
pursuant hereto, as to all of which recourse shall be had solely to the assets
of the Issuer.

 

19.                                 Third-Party Beneficiary.  The Owner Trustee is a third-party
beneficiary to this Agreement and is entitled to the rights and benefits hereunder
and may enforce the provisions hereof as if it were a party hereto.

 

11

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the day and year first above written.

 

	
   

  	
  JOHN DEERE OWNER
  TRUST 2005

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By: U.S. BANK
  TRUST NATIONAL

  ASSOCIATION, not in its individual capacity but

  solely as Owner Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Melissa A.
  Rosal

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Melissa A.
  Rosal

  	
   

  
	
   

  	
   

  	
  Title:  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  THE BANK OF NEW
  YORK, not in its individual

  capacity but solely as Indenture Trustee

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Jonathan
  Farber

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Jonathan
  Farber

  	
   

  
	
   

  	
   

  	
  Title: Assistant
  Vice President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  JOHN DEERE
  CAPITAL CORPORATION, as

  Administrator

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Steven E.
  Warren

  	
   

  	
   

  
	
   

  	
   

  	
  Name: Steven E.
  Warren

  	
   

  
	
   

  	
   

  	
  Title: Assistant
  Treasurer

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