Document:

efc12-180_ex103.htm

Exhibit 10.3

 

 

 

 

 

 

DCFS USA LLC,

as Servicer and as Lender,

 

DAIMLER TRUST,

as Titling Trust,

 

and

 

DAIMLER TITLE CO.,

as Collateral Agent

 

____________________________

 

AMENDED AND RESTATED

SERVICING AGREEMENT

 

Dated as of March 1, 2009

____________________________

 

 

 

 

 

 

 

  

  

  

 

 

 

 

 

	 	  TABLE OF CONTENTS	 
	 	 	 
	 	 	  Page
	 	 	 
	  	
ARTICLE ONE

 

USAGE AND DEFINITIONS

	  
	  	  	  
	
Section 1.01.

	
 Capitalized Terms; Rules of Usage.

 

	
1

	  	
ARTICLE TWO

 

DESIGNATION

	  
	  	  	  
	
Section 2.01.

	
 Direction to the Servicer

	
2

	
Section 2.02.

	
 Servicing Supplement

 

	
2

	  	
ARTICLE THREE

 

THE SERVICER

	  
	  	  	  
	
Section 3.01.

	
Appointment of Servicer

	
3

	
Section 3.02.

	
Representations and Warranties of the Servicer

	
3

	
Section 3.03.

	
Liability of the Servicer; Indemnities.

	
4

	
Section 3.04.

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

	
6

	
Section 3.05.

	
Delegation of Duties; Subservicers.

	
6

	
Section 3.06.

	
DCFS USA Not to Resign as Servicer

	
7

	
Section 3.07.

	
Insurance Policies.

	
7

	
Section 3.08.

	
Execution of Documents; Licenses, Filings and Applications.

	
7

	
Section 3.09.

	
Fees and Expenses.

	
8

	
Section 3.10.

	
Termination

 

	
9

	  	
ARTICLE FOUR

 

PURCHASE OF LEASES AND VEHICLES

	  
	  	  	  
	
Section 4.01.

	
Relationship With Dealers; Role of Servicer

	
9

	
Section 4.02.

	
Administration and Titling of Vehicles

	
10

	
Section 4.03.

	
Purchase of Leases and Vehicles

	
10

	
Section 4.04.

	
Listing of Vehicle Identification Numbers

 

	
10

	  	
ARTICLE FIVE

 

COLLECTIONS AND APPLICATION OF FUNDS

	  
	  	  	  
	
Section 5.01.

	
Remittances

	
11

	
Section 5.02.

	
Establishment of Certain Accounts

	
12

	 Section 5.03.	 Investment of Amounts in the Bank Accounts	13 

 

 

 

 

  

i

  

 

 

	
Section 5.04.

	
Settlement of Accounts

 

	
14

	  	
ARTICLE SIX

 

ADMINISTRATION AND SERVICING OF LEASES

	  
	  	  	  
	
Section 6.01.

	
Duties of Servicer

	
14

	
Section 6.02.

	
Collection of Payments

	
16

	
Section 6.03.

	
Allocation of Collections on Master Leases

	
17

	
Section 6.04.

	
Servicer Advances

	
18

	
Section 6.05.

	
Other Authorized Actions with Respect to the Servicing of the Leases

	
18

	
Section 6.06.

	
Records

	
19

	
Section 6.07.

	
Custodial Duties of Servicer

	
20

	
Section 6.08.

	
Maintenance of Record Interests in Vehicles

	
20

	
Section 6.09.

	
Pull Ahead Leases

	
20

	
Section 6.10.

	
No Impairment

	
20

	
Section 6.11.

	
Servicer to Act on Behalf of Titling Trustee

 

	
20

	  	
ARTICLE SEVEN

 

SALE OR OTHER DISPOSITION OF VEHICLES

	  
	  	  	  
	
Section 7.01.

	
Termination of Leases; Return of Vehicles

	
21

	
Section 7.02.

	
Expenses Relating to Vehicle Sales and Dispositions

	
21

	
Section 7.03.

	
Sale and Disposition Procedures

	
21

	
Section 7.04.

	
Security Deposits

 

	
22

	  	
ARTICLE EIGHT

 

SERVICER DEFAULT

	  
	  	  	  
	
Section 8.01.

	
Facility Servicer Event of Default

	
22

	
Section 8.02.

	
Revolving Facility Servicer Events of Default

	
23

	
Section 8.03.

	
Exchange Note Servicer Events of Default

	
23

	
Section 8.04.

	
Appointment of Successor Servicer

	
24

	
Section 8.05.

	
Waiver of Servicer Event of Default

 

	
26

	  	
ARTICLE NINE

 

REPORTING

	  
	  	  	  
	
Section 9.01.

	
Monthly Revolving Facility Reports

	
26

	
Section 9.02.

	
Monthly Exchange Note Reports

	
26

	
Section 9.03.

	
Annual Statement as to Compliance

	
26

 

	
Section 9.04.

	
Annual Independent Certified Public Accountants’ Report

	
26

	
Section 9.05.

	
Other Notices.

 

	
27

 

 

 

  

ii

  

 

 

	  	
ARTICLE TEN

 

MISCELLANEOUS

	  
	  	  	  
	
Section 10.01.

	
Amendments

	
28

	
Section 10.02.

	
No Legal Title to Titling Trust Assets

	
28

	
Section 10.03.

	
Tax Characterization

	
28

	
Section 10.04.

	
Notices

	
28

	
Section 10.05.

	
Third-Party Beneficiaries

	
28

	
Section 10.06.

	
 No Petition

	
29

	
Section 10.07.

	
 GOVERNING LAW; SUBMISSION TO JURISDICTION

	
29

	
Section 10.08.

	
WAIVER OF JURY TRIAL

	
29

	
Section 10.09.

	
Severability

	
29

	
Section 10.10.

	
Counterparts

	
30

	
Section 10.11.

	
Table of Contents and Headings

	
30

	
Section 10.12.

	
Further Assurances

	
30

	
Section 10.13.

	
Agent for Service

	
30

	
Section 10.14.

	
No Recourse

	
30

	  	  	  
	  	
EXHIBITS

 

	  
	
Exhibit A–

	
Locations of Lease Files

	
A-1

	
Exhibit B–

	
Form of Monthly Revolving Facility Report

 

	
B-1

	  	
SCHEDULE

 

	  
	
Schedule I–

	
Addresses For Notice

	
SI-1

 

 

  

iii

  

 

 

This AMENDED AND RESTATED SERVICING AGREEMENT, dated as of March 1, 2009 (as amended, restated, supplemented with respect to a particular Reference Pool described herein or otherwise modified from time to time, this “Agreement”), is among DCFS USA LLC, a Delaware limited liability company (“DCFS USA”), as servicer (in such capacity, the “Servicer”) and as Lender under the Collateral Agency Agreement referred to herein (in such capacity, the “Lender”), DAIMLER TRUST, a Delaware statutory trust (the “Titling Trust”), and DAIMLER TITLE CO., a Delaware corporation, as collateral agent (the “Collateral Agent”).

 

RECITALS

 

WHEREAS, pursuant to a Second Amended and Restated Trust Agreement, dated as of April 1, 2008 (the “Titling Trust Agreement”), among DCFS USA, Daimler Trust Holdings LLC and BNY Mellon Trust of Delaware (f/k/a BNYM (Delaware)) (f/k/a The Bank of New York (Delaware)), the Titling Trust was created to hold title to leases, vehicles and certain related assets (the “Titling Trust Assets”);

 

WHEREAS, the Titling Trust Agreement provides for the creation from time to time of one or more “specified interests” to which certain Titling Trust Assets will be allocated;

 

WHEREAS, the parties hereto have entered into a Servicing Agreement, dated as of August 1, 2007, as amended by Amendment Number 1 thereto, dated as of October 1, 2008 (collectively, the “Original Servicing Agreement”), that provides for, among other things, the servicing by the Servicer of the Titling Trust Assets allocated to a specified interest known as the “Daimler Retail Specified Interest”; and

 

WHEREAS, the parties hereto wish to amend and restate the Original Servicing Agreement to more fully set forth the rights and obligations of the parties hereto.

 

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

 

 

ARTICLE ONE

 

USAGE AND DEFINITIONS

 

Section 1.01.  Capitalized Terms; Rules of Usage.

 

(a)           Capitalized terms used in this Agreement that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the Basic Collateral Agency Agreement or, if not defined therein, in Appendix 1 to the related Servicing Supplement, which Appendix A is hereby incorporated into and made a part of this Agreement.  Appendix A also contains rules as to usage applicable to this Agreement.  Except as otherwise specified herein or as the context may otherwise require, the following terms have the respective meanings set forth below for all purposes of this Agreement.

 

“Basic Collateral Agency Agreement” means the Amended and Restated Collateral Agency Agreement, dated as of March 1, 2009, among Daimler Trust, as borrower, U.S. Bank

 

 

 

  

  

  

 

Trust National Association, as administrative agent, Daimler Title Co., as collateral agent, and DCFS USA, as lender and as servicer.

 

(b)           Except as otherwise indicated by the context, all references herein to (i) “Leases” shall be to Collateral Leases and (ii) “Vehicles” shall be to Collateral Vehicles.

 

 

ARTICLE TWO

 

DESIGNATION

 

Section 2.01.  Direction to the Servicer.  Pursuant to the Titling Trust Agreement, the Titling Trust directs the Servicer to deliver on its behalf any notices with respect to the acquisition or disposition of assets as may be required to be delivered to the Titling Trust Administrator pursuant to the Titling Trust Agreement in connection with the acquisition, sale or other disposition of any Collateral Asset.  So long as DCFS USA remains both the Servicer and the Titling Trust Administrator, DCFS USA will be deemed to have delivered any such notice when it indicates, in its capacity as Titling Trust Administrator, the assignment of the applicable Vehicle on the books and records maintained with respect to the Titling Trust.

 

Section 2.02.  Servicing Supplement.  In connection with the issuance of an Exchange Note pursuant to Section 4.01(a) of the Collateral Agency Agreement, the parties hereto may enter into a supplement to this Agreement (each, a “Servicing Supplement”) that sets forth specific rights and duties of the Servicer and other agreements and undertakings with respect to the administration and servicing of the Leases and Vehicles included in the related Reference Pool, including:

 

(a)           the representations and warranties, if any, to be made by the Servicer with respect to such Leases and Vehicles;

 

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

 

(c)           the rate and any other terms with respect to the related Reference Pool Servicing Fee;

 

(d)           the manner in which the Servicer will service and administer such Leases and Vehicles;

 

(e)           the purchase of a Lease (and all related Vehicles) or other remedy to be provided by the Servicer upon the breach by the Servicer of a representation, warranty or covenant with respect to such Lease (or any related Vehicle); and

 

 

  

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(f)           reporting obligations of the Servicer with respect to the related Reference Pool.

 

 

ARTICLE THREE

 

THE SERVICER

 

Section 3.01.  Appointment of Servicer.  The Titling Trust, pursuant to the authority granted to it under the Titling Trust Agreement, continues the appointment of DCFS USA as Servicer under this Agreement, including acting as agent of the Titling Trust and the Collateral Agent in the management and control of the Collateral Assets, including the Certificates of Title, and for all other purposes set forth in this Agreement.  DCFS USA hereby accepts such appointments.

 

Section 3.02.  Representations and Warranties of the Servicer.  As of the respective dates set forth in the immediately succeeding sentence, the Servicer makes, or shall be deemed to have made, the representations and warranties set forth in this Section, on which representations and warranties the other parties hereto are relying, and any Exchange Noteholder, in acquiring the related Exchange Note, will rely.  Such representations and warranties are effective and shall be deemed to have been made as of each of the Closing Date, the Effective Date and, with respect to each Exchange Note, as of the related Exchange Note Issuance Date.

 

(a)           Organization and Good Standing.  The Servicer has been duly organized and is validly existing as a limited liability company in good standing under the laws of the State of Delaware, with the power and authority to own or lease its properties and to conduct its activities as such properties are currently owned or leased and such activities are currently conducted, and had at all relevant times, and has, the power and authority to service the Leases and Vehicles and to hold the Lease Files as custodian on behalf of the Titling Trust and the Collateral Agent.

 

(b)           Due Qualification.  The Servicer is duly qualified to do business as a foreign limited liability company in good standing, and has obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its activities (including the servicing of the Leases and Vehicles as required by this Agreement) requires such qualifications, unless the failure to obtain such qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the ability of the Servicer to perform its obligations under any Servicer Basic Document.

 

(c)           Power and Authority; Authorization; Execution and Delivery; Binding Obligation.  The Servicer has the power and authority to execute, deliver and perform its obligations under the Servicer Basic Documents.  Each Servicer Basic Document has been duly authorized, executed and delivered by the Servicer and constitutes the legal, valid and binding obligation of the Servicer, enforceable against the Servicer in accordance with its terms, except as such enforceability may be limited by insolvency, bankruptcy, reorganization or other laws relating to or affecting the enforcement of creditors’ rights and by general equitable principles.

 

 

  

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(d)           No Violation.  The consummation of the transactions contemplated by, and the fulfillment of the terms of, each Servicer Basic Document will not (i) conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time or both) a default under its limited liability company agreement, any material indenture, mortgage, deed of trust, loan agreement, guarantee, lease financing agreement or similar agreement or instrument to which the Servicer is a party or by which the Servicer is bound (in each case material to the Servicer and its subsidiaries considered as a whole), (ii) result in the creation or imposition of any Lien (material to the Servicer and its subsidiaries considered as a whole) upon any of its properties pursuant to any such agreement or instrument (other than Permitted Liens or Liens contemplated by the Servicer Basic Documents) or (iii) violate or contravene any law or, to the Servicer’s knowledge, any order, rule or regulation applicable to the Servicer of any court or any Governmental Authority having jurisdiction over the Servicer or its properties, the failure to comply with which would reasonably be expected to have a material adverse effect upon the ability of the Servicer to perform its obligations under any Servicer Basic Document.

 

(e)           No Proceedings.  There are no proceedings pending, or, to the Servicer’s knowledge, threatened, and to the Servicer’s knowledge there are no investigations pending or threatened, against or affecting the Servicer or its property before any Governmental Authority (i) asserting the invalidity or unenforceability of the Exchange Notes or any Basic Document, (ii) seeking to prevent the consummation of any of the transactions contemplated by any Basic Document or (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the ability of the Servicer to perform its obligations under any Servicer Basic Document.

 

Section 3.03.  Liability of the Servicer; Indemnities.

 

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

 

(b)          The Servicer will indemnify, defend and hold harmless the Titling Trustee, each Covered Party and their respective officers, directors, employees and agents (each, with respect to this subsection, an “Indemnified Person”) from and against:

 

(i)      any and all taxes that may be asserted against any such Person with respect to the transactions contemplated in the Basic Documents or in any Servicing Supplement, including any sales, gross receipts, general corporation, personal property, privilege or license taxes (excluding U.S. federal, State or local income taxes or franchise taxes arising out of the transactions contemplated by the Basic Documents or any Servicing Supplement) and costs and expenses of defending against the same; and

 

(ii)     any and all costs, expenses, losses, damages, claims and liabilities arising out of, or imposed upon any such Person through (A) the Servicer’s willful misconduct, negligence or bad faith in the performance of its duties under any Servicer Basic 

  

4

  

 

 

Document or any Servicing Supplement or (B) the Servicer’s reckless disregard of its obligations and duties under any Servicer Basic Document or any Servicing Supplement.

 

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

 

(d)          The Servicer, as custodian of the Lease Files, will indemnify the Titling Trustee, each Covered Party and their respective officers, directors, employees and agents (each, with respect to this Section, an “Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or incurred in connection with, any improper or negligent act or omission relating to the maintenance and custody by the Servicer or one of its custodians as custodian of the Lease Files.

 

(e)           Promptly upon receipt by an Indemnified Person of notice of the commencement of any Proceeding against any such Indemnified Person, if such Indemnified Person intends to make a claim in respect of such Proceeding against the Servicer under Sections 3.03(b), 3.03(c) or 3.03(d), as the case may be, such Indemnified Person will notify the Servicer of the commencement of such Proceeding.  Failure by an Indemnified Person to so notify the Servicer will not relieve the Servicer of its obligations under this Section; provided, that the Servicer has not been materially prejudiced by such failure to notify.  The Servicer may participate in and assume the defense and settlement of any such Proceeding at its expense, and no settlement of such Proceeding may be made without the approval of the Servicer and such Indemnified Person, which approvals will not be unreasonably withheld, delayed or conditioned.  The Servicer’s indemnification obligations will include reasonable fees and expenses of counsel and expenses of litigation.  After notice from the Servicer to such Indemnified Person of the Servicer’s intention to assume the defense of such Proceeding with counsel reasonably satisfactory to such Indemnified Person, and so long as the Servicer so assumes the defense of such Proceeding in a manner reasonably satisfactory to such Indemnified Person, the Servicer will not be liable for any legal expenses of counsel to such Indemnified Person unless there is a conflict between the interests of the Servicer and such Indemnified Person, in which case the Servicer will pay for separate counsel reasonably acceptable to the Servicer and such Indemnified Person.

 

(f)           For purposes of this Section, if the Servicer’s rights and obligations as Servicer are terminated pursuant to Sections 8.01, 8.02 or 8.03, the Servicer nevertheless will be deemed to continue to be the Servicer under this Agreement and any related Servicing Supplement pending appointment of a successor Servicer pursuant to Section 8.04.

 

(g)          The Servicer’s obligations under this Section, with respect to the period such Person was (or was deemed to be) the Servicer, will survive the termination of such Person as Servicer or a resignation by such Person as Servicer as well as the termination of this Agreement

 

 

  

5

  

 

or the resignation or removal of the Administrative Agent or the Collateral Agent.  If the Servicer makes any indemnity payments to any Indemnified Person pursuant to this Section, (i) the Servicer will be subrogated to any rights of such Indemnified Person to recover such amount from any other Person and (ii) if such Indemnified Person thereafter collects any of such amounts from any other Person, such Indemnified Person will promptly repay such amounts to the Servicer, without interest.

 

Section 3.04.  Merger or Consolidation of, or Assumption of the Obligations of Servicer.  Any Person (i) into which the Servicer may be merged or consolidated, (ii) resulting from any merger, conversion or consolidation to which the Servicer is a party, (iii) succeeding to the business of the Servicer or (iv) of which the Servicer owns, directly or indirectly, more than 50% of the voting stock or voting power and 50% or more of the economic equity, which Person in any of the foregoing cases executes an agreement of assumption to perform every obligation of the Servicer under this Agreement, will be the successor to the Servicer under this Agreement and any Servicing Supplement without the execution or filing of any paper or any further act on the part of any of the parties to this Agreement or any Servicing Supplement.  The Servicer will provide notice of any such merger, conversion, consolidation or succession to the Administrative Agent, the Lender, the Collateral Agent and each Exchange Noteholder.

 

Section 3.05.  Delegation of Duties; Subservicers.

 

(a)           So long as DCFS USA is the Servicer, the Servicer may without notice or consent delegate any or all of its duties under this Agreement to any company or other business entity of which DCFS USA owns, directly or indirectly, more than 50% of the voting stock or voting power and 50% or more of the economic equity.

 

(b)          The Servicer may enter into subservicing agreements with one or more subservicers for the servicing and administration of any or all of the Leases.  References in this Agreement or any Servicing Supplement to actions taken, or to be taken, permitted to be taken or restrictions on actions permitted to be taken, by the Servicer in servicing the Leases shall include actions taken, or to be taken, permitted to be taken or restrictions on actions permitted to be taken, by a subservicer on behalf of the Servicer.  Each subservicing agreement will be upon such terms and conditions as are not inconsistent with this Agreement and the standard of care set forth herein and as the Servicer and the related subservicer have agreed.  All compensation payable to a subservicer under a subservicing agreement shall be payable by the Servicer from its servicing compensation or otherwise from its own funds.

 

(c)           Notwithstanding any subservicing agreement or any of the provisions of this Agreement relating to agreements or any arrangements between the Servicer or a subservicer or any reference to actions taken through such entities or otherwise, the Servicer shall remain obligated and liable for the servicing and administering of the Leases in accordance with this Agreement without diminution of such obligation or liability by virtue of such subservicing agreements.

 

(d)          Any subservicing agreement that may be entered into and any other transactions or servicing arrangements relating to or involving a subservicer shall be deemed to be between the subservicer and the Servicer alone, and the other parties hereto, the Initial Beneficiary, the

 

 

 

  

6

  

 

Administrative Agent or any Exchange Noteholder shall not be deemed parties thereto and shall have no obligations, duties or liabilities with respect to the subservicer.

 

Section 3.06.  DCFS USA Not to Resign as Servicer.  DCFS USA will not resign as Servicer under this Agreement except upon determination that the performance of its duties under this Agreement is no longer permissible under law.  Prior to the effectiveness of such resignation, DCFS USA will deliver to the Titling Trustee and the Covered Parties (i) notice of any such determination permitting the resignation of DCFS USA as Servicer and (ii) an Opinion of Counsel to such effect.  Any such resignation will become effective in accordance with Section 8.04(c).

 

Section 3.07.  Insurance Policies.

 

(a)           Vicarious Liability.  To the extent that the Servicer self-insures vicarious liability suffered by the Covered Parties that arises out of the use or operation of the Vehicles (including other vehicles owned by the Titling Trust that are allocated to other Specified Interests), the Servicer will indemnify the Covered Parties for any uninsured losses relating to such vicarious liability.

 

(b)           Lessee Insurance Policies.  The Servicer shall cause each Lease to require that the related Lessee shall have and maintain during the related Lease Term (i) a comprehensive collision and physical damage insurance policy covering the actual cash value of the related Vehicle and (ii) automotive liability insurance in amounts at least equal to the amount prescribed by applicable State law.  Each Lease shall provide that failure to obtain and maintain the required insurance is a default thereunder.

 

Section 3.08.  Execution of Documents; Licenses, Filings and Applications.

 

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

 

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

 

(c)           The Servicer shall identify from time to time all (i) UCC financing statements reflecting certain interests in Leases allocated to a particular Reference Pool and all related rights, (ii) periodic sales and use tax, income or franchise tax or property (real or personal) tax reports for the Titling Trust and the Titling Trustee, (iii) periodic renewals of licenses and permits, (iv) periodic renewals of qualifications to act as a statutory trust and trustee of a statutory trust and (v) other periodic governmental filings, returns, registrations or approvals (collectively, “Filings”) arising with respect to or required of the Titling Trustee or the Titling Trust, including (in the case of clauses (iii) and (v)) such licenses, permits and other Filings

 

 

  

7

  

 

 

as are required for the Titling Trust or the Titling Trustee on behalf of the Titling Trust, as the case may be, to own Leases and own and lease the Vehicles and to be identified and maintained as the owner of the Vehicles on the related Certificates of Title, as contemplated by Section 4.02.  The Servicer shall also identify surety bonds or other ancillary undertakings required of the Titling Trust or the Titling Trustee in respect of any Filing.  The Servicer, with, to the extent applicable, the cooperation of the Initial Beneficiary, the Titling Trustee and the Titling Trust, shall timely prepare and file or cause to be filed, with the appropriate Person each Filing and each such ancillary undertaking, and shall pay any and all fees, taxes or expenses required to be paid in connection with the foregoing.  The Servicer shall provide to the Titling Trustee a copy of each such Filing or undertaking upon request, other than Consolidated Tax Filings.  In connection with the foregoing, the Titling Trust shall grant to the Servicer such authority, including any necessary power of attorney, as it may require to effect each such Filing or ancillary undertaking.  If the Servicer receives notice, or has actual knowledge, of material non-compliance with any Filing requirement, it shall promptly so notify the Titling Trustee.

 

(d)           The Servicer is authorized and directed, as attorney-in-fact or otherwise, to prepare, execute and deliver, on behalf of the Initial Beneficiary and the Titling Trust:

 

(i)      any applications, instruments and other documents deemed necessary or appropriate in the sole discretion of the Servicer to comply with, and effect the purposes of, this Agreement (including, in the case of the Initial Beneficiary, this Agreement and any Servicing Supplements) and the other Basic Documents; and

 

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

 

Section 3.09.  Fees and Expenses.

 

(a)           Revolving Facility Pool Servicing Fee.  The Holder of the Daimler Retail Specified Interest Certificate will pay, or cause to be paid, to the Servicer the Revolving Facility Pool Servicing Fee in consideration for, among other things, (i) servicing the Revolving Facility Pool, (ii) the allocable cost of maintaining Insurance Policies pursuant to Section 3.07 and (iii) paying the fees and expenses set forth in Section 3.09(d), in each case relating to the Revolving Facility Pool.  The Revolving Facility Pool Servicing Fee will be payable solely from, and the right of the Servicer to receive the Revolving Facility Pool Servicing Fee will be limited in recourse to, the Collections and other amounts applied to the payment of such fee pursuant to the Collateral Agency Agreement.

 

(b)           Reference Pool Servicing Fee.  The Servicer shall be paid the Reference Pool Servicing Fee for each Reference Pool in consideration for, among other things, (i) servicing such Reference Pool, (ii) the allocable cost of maintaining Insurance Policies pursuant to Section 3.07 and (iii) paying the fees and expenses set forth in Section 3.09(d), in each case relating to such Reference Pool.  The Reference Pool Servicing Fee for each Reference Pool will be payable solely from, and the right of the Servicer to receive the Reference Pool Servicing Fee for each Reference Pool will be limited in recourse to, the Collections and other amounts applied

 

 

 

  

8

  

 

to the payment of such fee pursuant to the Collateral Agency Agreement and the related Exchange Note Supplement.

 

(c)           Servicing Expenses.  Except as otherwise provided in any applicable Servicing Supplement, the Servicer will be required to pay all expenses incurred by it in connection with its activities under this Agreement or any Servicing Supplement and shall not be entitled to reimbursement of any such expenses other than unpaid Disposition Expenses, Insurance Expenses and Liquidation Expenses.  The Servicer may advance Insurance Expenses, Disposition Expenses and Liquidation Expenses to the extent required to service the related Collateral Assets.  The Servicer shall be entitled to be reimbursed for Insurance Expenses, Disposition Expenses and Liquidation Expenses to which it is entitled by depositing only Net Liquidation Proceeds to the related Collection Account or by appropriately segregating and designating such funds on its records, pending application thereof.  The Servicer may charge Lessees of the Vehicles, and be reimbursed, for (i) collection, repossession, transportation and remarketing expenses and (ii) amounts required to be paid by a Lessee that are paid by the Servicer (such as liabilities or other fines).

 

(d)           Administrative Charges.  Unless otherwise provided in a Servicing Supplement, the Servicer shall be entitled to additional servicing compensation with respect to the related Collateral Assets in the form of Administrative Charges to the extent that such amounts are not required for the payment of insurance premiums, taxes, fines or similar charges or other charges required to be paid to Dealers or other third parties allocable to the Leases.  The Servicer shall cause the portions of the Administrative Charges representing allocations of taxes to be paid by the related Lessee or the Servicer shall pay all such amounts as are contemplated by the related Lease.

 

(e)           Other Fees and Expenses.  The Servicer will pay from the Servicing Fee (i) the Trustee Fee to the Titling Trustee, (ii) the Titling Trust Administrator Fee to the Titling Trust Administrator and (iii) all general corporation, intangible, franchise, privilege or license taxes with respect to the Leases and Vehicles.

 

Section 3.10.  Termination.  This Agreement may be terminated at the option of the Servicer or the Titling Trust, with notice to the other parties hereto, at any time following the termination of the Revolving Period and the payment in full of all Outstanding Exchange Notes and the Revolving Facility Balance; provided, that the rights and obligations of the parties to this Agreement under Section 3.03 will survive any such termination.

 

 

ARTICLE FOUR

 

PURCHASE OF LEASES AND VEHICLES

 

Section 4.01.  Relationship With Dealers; Role of Servicer.  The Servicer will maintain its relationship with Dealers and Lessees in its individual capacity in the ordinary course of its business.  The Servicer will, on behalf of the Titling Trust, originate or acquire Leases and Vehicles for allocation to the Daimler Retail Specified Interest on an ongoing basis during the term of this Agreement in accordance with Section 4.03.  Each related Lease (or Schedule, in the case of a Master Lease) will be originated on a form providing for acquisition of the related

 

 

 

  

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Vehicle by or on behalf of the Titling Trust, or assignment of the related Vehicle by the Dealer to the Titling Trust as set forth in Section 4.02.

 

Section 4.02.  Administration and Titling of Vehicles.

 

(a)           The Servicer will cause the Certificate of Title for each Vehicle acquired pursuant to Section 4.01 to be issued by the related Registrar of Titles in the name and in the manner specified in the Titling Trust Agreement.

 

(b)           The Servicer may, at its option (i) cause (or, if applicable, direct the related Dealer to cause) the Certificate of Title with respect to each Vehicle to reflect “Daimler Title Co.”, or such substantially similar words as the relevant Registrar of Titles will accept, as the recorded lienholder or recorded holder of a security interest with respect to each Vehicle that is acquired pursuant to Section 4.01 and (ii) prepare, or direct the related Dealer to prepare, each application for a Certificate of Title in a manner that the Servicer reasonably determines from time to time is in compliance with the requirements of Applicable Law and the related Registrar of Titles in order to perfect the security interest of the Collateral Agent in the related Vehicle.  To the extent that the Servicer determines that a lien in favor of the Collateral Agent on the Certificates of Title is necessary or desirable, the Collateral Agent shall execute the foregoing documents, and provide all other assistance reasonably requested from time to time by the Servicer in connection with this subsection.

 

(c)           Upon transfer to or from the Titling Trust of legal title to any Vehicle, the Servicer shall cause all applicable taxes to be paid and will comply with all Applicable Laws relating to the transfer of title to such Vehicle.

 

Section 4.03.  Purchase of Leases and Vehicles.  The Servicer, upon (i) causing the Dealer to enter into a Lease, will cause such Lease, the related Vehicle and rights to any related security deposit to be assigned, and (ii) causing the Dealer to acquire a Vehicle subject to an existing Master Lease, will cause such Vehicle and, if applicable, rights under such Master Lease to any related security deposit, to be assigned to the Titling Trust for allocation to the Daimler Retail Specified Interest against payment of the related Dealer Proceeds.  The Servicer will pay, or cause to be paid, to the related Dealer an amount equal to the Dealer Proceeds with respect to each such Lease and Vehicle from (i) the proceeds of an Advance made pursuant to Section 2.01(d) of the Basic Collateral Agency Agreement and (ii) additional funds provided by DCFS USA (which additional amounts will be deemed to constitute capital contributions by DCFS USA to the Initial Beneficiary and, in turn, by the Initial Beneficiary to the Titling Trust).

 

Section 4.04.  Listing of Vehicle Identification Numbers.  The Servicer will maintain a list of the vehicle identification numbers or other identifying account number for all Vehicles acquired by the Titling Trust and will make such list (or access to such list) available upon request to the Initial Beneficiary, the Lender, the Administrative Agent, the Collateral Agent and the Titling Trust Administrator.

 

 

 

  

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ARTICLE FIVE

 

COLLECTIONS AND APPLICATION OF FUNDS

 

Section 5.01.  Remittances.

 

(a)           Notwithstanding any other provision of this Agreement, for so long as DCFS USA is the Servicer and the Lender, DCFS USA may retain, for its own account, Collections with respect to the Revolving Facility Pool (i) to the extent of amounts (A) to be paid to it, as (1) Servicer in respect of the Revolving Facility Pool Servicing Fee or (2) Lender, for interest, principal or other amounts with respect to the Revolving Facility and (B) for which DCFS USA, as Servicer, is entitled to be reimbursed pursuant to Sections 3.09(c) and (d) and (ii) until such amounts are otherwise required to be applied pursuant to Article Ten of the Collateral Agency Agreement.  In addition, in the event that a Revolving Facility Collection Account is created pursuant to Section 5.02(a), (i) Collections with respect to the Revolving Facility Pool need not be deposited therein to the extent that such Collections are permitted to be retained pursuant to this subsection and Section 2.04(b) of the Basic Collateral Agency Agreement and (ii) if Collections with respect to the Revolving Facility Pool are required to be deposited therein, the Servicer shall be permitted to retain such Collections received during or in respect of a Collection Period until the related Payment Date.  The Servicer will separately account for all such remittances and payments.

 

(b)           The Servicer will deposit Collections with respect to each Reference Pool into the related Collection Account pursuant to the remittance schedule set forth in the related Servicing Supplement; provided that for so long as the Monthly Remittance Condition is satisfied or if the Servicer has obtained a Servicer Letter of Credit, the Servicer shall be permitted to retain Collections with respect to a Reference Pool received during or in respect of a Collection Period until the related Deposit Date.  If no such remittance schedule is specified in the Servicing Supplement with respect to any Reference Pool, the Servicer will be permitted to retain Collections with respect to such Reference Pool for its own account until such amounts are required to be applied pursuant to Article Ten of the Collateral Agency Agreement.

 

(c)           The Servicer will remit to the appropriate tax authority all sales and use, monthly rental receipts, personal property and ad valorem taxes collected by it from the Lessees with respect to the Collateral Assets in accordance with the Credit and Collection Policy.

 

(d)           Notwithstanding any other provision of this Agreement, except as otherwise provided in an Exchange Note Supplement or Servicing Supplement, in the case of proceeds from the sale or other disposition of a Vehicle (less related Liquidation Expenses), the Servicer shall deposit into the related Collection Account when due an amount equal to such net proceeds rather than the actual net proceeds from such sale or other disposition, which actual net proceeds shall be deposited into a Qualified Intermediary Account and shall not constitute amounts payable in respect of the Revolving Facility or the related Reference Pool, as the case may be.

 

 

  

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Section 5.02.  Establishment of Certain Accounts.

 

(a)           Revolving Facility Collection Account.  On or before the Closing Date, the Servicer will establish an Eligible Account in the name of the Collateral Agent, to be designated as the “Revolving Facility Collection Account” with respect to the Revolving Facility Pool, into which Collections with respect to the Revolving Facility Pool will be deposited.  Notwithstanding any other provision of this Agreement, so long as DCFS USA remains both the Lender and the Servicer and no Facility Servicer Event of Default or Revolving Facility Servicer Event of Default has occurred, no Revolving Facility Collection Account need be established.

 

(b)           Reference Pool Collection Account.  On or before each Exchange Note Issuance Date, the Servicer will establish an Eligible Account in the name of the related indenture trustee to be designated as the “Reference Pool Collection Account” with respect to the related Reference Pool, into which Collections with respect to such Reference Pool will be deposited.

 

(c)           Control of the Bank Accounts.  Each Bank Account will be a “securities account” within the meaning of Section 8-501 of the New York UCC.  The Revolving Facility Collection Account will be under the sole dominion and control of the Collateral Agent, as secured party for the benefit of the Lender; provided, that following the payment in full of the Revolving Facility Balance and the termination of the Revolving Facility, such Collection Account will be under the sole dominion and control of the Borrower.  However, the Servicer may make deposits to or request the Collateral Agent (or, following the payment in full of the Revolving Facility Balance and the termination of the Revolving Facility, the Borrower) to make deposits to or withdrawals from such Collection Account in accordance with the Collateral Agency Agreement and this Agreement.  All monies deposited in such Collection Account pursuant to the Collateral Agency Agreement and this Agreement will be held (i) until the payment in full of the Revolving Facility Balance and the termination of the Revolving Facility, by the Collateral Agent and (ii) following the payment in full of the Revolving Facility Balance and the termination of the Revolving Facility, by or on behalf of the Borrower, and in each case will be applied only upon the terms and conditions of the Basic Documents.  The authority of the Servicer to make deposits to the Revolving Facility Collection Account is revocable at any time by the Collateral Agent until the payment in full of the Revolving Facility Balance and the termination of the Revolving Facility, and thereafter by the Borrower.  The rights of the parties in, to and under each Bank Account that is established with respect to a Reference Pool will be governed by the terms of the related Servicing Supplement.

 

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

 

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

 

 

  

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

 

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

 

(iv)     the Security Intermediary’s jurisdiction (within the meaning of Section 8-110 of the UCC) is the State of New York.

 

(e)           Compliance.  If at any time a Bank Account ceases to be an Eligible Account, the Servicer will, with the assistance of the Collateral Agent, the Administrative Agent and the  Borrower, as necessary, cause such Bank Account to be promptly moved to a depository institution or trust company at which it shall be an Eligible Account.

 

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

 

Section 5.03.  Investment of Amounts in the Bank Accounts.

 

(a)           Permitted Investments.  So long as no Facility Default has occurred and is continuing, amounts on deposit in the Bank Accounts will, to the extent permitted by Applicable Law and except to the extent otherwise provided in a Servicing Supplement, be invested as directed by the Servicer in Permitted Investments.

 

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

 

(c)           Tax Reporting of Investment Income.  All investment income on amounts deposited to the Collection Accounts established with respect to the Revolving Facility or any Bank Accounts established with respect to any Reference Pool will be reported for U.S. federal income tax purposes as earned by the Titling Trust and will be reported by Daimler North America.

 

 

  

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Section 5.04.  Settlement of Accounts.

 

(a)             The Servicer shall, from time to time, determine the respective amounts and recipients and:

 

(i)      as and when required by and as provided in this Agreement or a related Servicing Supplement, transfer or cause to be transferred from the related Collection Account to the Servicer any due and unpaid Servicing Fees (except to the extent that the Servicer has retained such amounts from Collections or collections in respect of the related Exchange Note or Reference Pool in a manner consistent with this Agreement and any applicable Servicing Supplement);

 

(ii)      as and when required in connection with the Basic Documents or other related transaction documents relating to a securitization, transfer or cause to be transferred from the related Collection Account to the related distribution account such amounts as are required to be distributed from time to time in connection with such securitization; and

 

(iii)    as and when required by the Titling Trust Agreement or a related Exchange Note Supplement or Servicing Supplement, transfer or cause to be transferred from the related Collection Account any other funds provided for in the Titling Trust Agreement or any such Exchange Note Supplement or Servicing Supplement.

 

(b)           To the extent that the Servicer shall be entitled to make any of the foregoing transfers, the Servicer may make any of such transfers by appropriately segregating and designating the relevant funds on its records, pending application thereof in accordance with this Agreement.

 

 

ARTICLE SIX

 

ADMINISTRATION AND SERVICING OF LEASES

 

Section 6.01.  Duties of Servicer.  The Servicer will manage, service, administer and make collections on the Collateral Assets, together with any Dealer Recourse Rights, if any, and Insurance Policies maintained with respect to the Collateral and the other Servicer Basic Documents and shall have full power and authority, acting alone and subject only to the specific requirements and prohibitions hereof and thereof, to do any and all things in connection with such servicing, administration and collection that it may reasonably deem necessary or desirable in the interests of the Titling Trust and to serve in such capacity until its termination of responsibilities pursuant to Article Eight or until this Agreement terminates.  The duties of the Servicer shall include, among other things, in accordance with the Servicer Basic Documents:

 

(a)           performing on behalf of the Titling Trust all obligations on the part of the Lessor under the Leases;

 

(b)           collecting and processing payments (including excess wear, damage and mileage deficiency balances on Liquidated Leases), responding to inquiries of Lessees or federal, State or local government authorities with respect to the Leases, investigating and

 

 

 

  

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collecting delinquencies, sending payment statements and reporting tax information to Lessees, paying costs of the sale or other disposition of Vehicles related to Defaulted Leases, Liquidated Leases and Matured Vehicles and paying or causing to be paid all State and local personal property, use, excise and sales taxes on the Vehicles (to the extent required to be paid by the Lessor under applicable State law) as and when such taxes become due;

 

(c)           sending communications to the Lessees of Leases nearing their respective Maturity Dates explaining options available to such Lessees, and negotiating with such Lessees, including in connection with (i) purchasing the related Vehicles and obtaining financing therefor through DCFS USA, (ii) returning the related Vehicles and satisfying the provisions of the related Leases, (iii) returning the related Vehicles and considering the acquisition of another Mercedes-Benz vehicle that DCFS USA may finance (including with respect to Pull Ahead Programs) and (iv) arranging for Extensions of the related Lease, in each case in accordance with the Credit and Collection Policy, the Fair and Accurate Credit Transactions Act of 2003 and other Applicable Law;

 

(d)           executing and delivering or causing to be executed and delivered, in its own name or in the name of the Titling Trust, or the Titling Trustee on behalf of the Titling Trust, as the case may be, any and all instruments, certificates or other documents necessary or advisable in connection with the servicing or administering of or collecting under the Leases and in respect of the Vehicles, including: (i) bills of sale, (ii) applications for originals or duplicates of Certificates of Title in the name of the Titling Trust or the Titling Trustee on behalf of the Titling Trust, applications for registrations of Vehicles or license plates, applications for transfers of Certificates of Title or registrations for Vehicles or license plates and any instruments, certificates or other documents which the Servicer deems necessary or advisable to record, maintain or release title to or registration of Vehicles in the manner contemplated hereby, (iii) consents, amendments, extensions, deferrals or modifications to any of the Leases and (iv) all other instruments, certificates or other documents similar to the foregoing;

 

(e)           servicing the Leases, including (i) accounting for collections and furnishing periodic statements with respect to distributions as set forth herein or in the applicable Servicing Supplement or applicable Servicer Basic Documents, (ii) generating or causing to be generated U.S. federal and State tax information and, to the extent required by applicable law, returns on behalf of the Titling Trust and (iii) filing periodic sales and use tax or property (real or personal) tax reports;

 

(f)           in connection with the creation and maintenance of the Revolving Facility Pool and each Reference Pool, maintaining separate and distinct records and separately accounting for the Collateral Assets allocated to the Revolving Facility Pool and each Reference Pool, including, with respect to (i) the Revolving Facility Pool, preparing and delivering to the Lender and the Titling Trustee a Schedule of Reference Pool Assets for each Reference Pool created and (ii) each Reference Pool, to the extent provided in the related Servicing Supplement or Exchange Note Supplement, preparing and delivering to the related Exchange Noteholder a Schedule of Reference Pool Assets;

 

 

 

  

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(g)           applying for and maintaining the licenses and the filings described in Section 3.08 or in any Servicing Supplement;

 

(h)           preparing and filing any UCC financing statements;

 

(i)             taking such actions as are required or desirable to effect Like Kind Exchanges for tax purposes or otherwise in connection with Like Kind Exchanges, including actions related to any Master Exchange Program of the Tax Owner;

 

(j)            acting as agent of the Titling Trust as Borrower, pursuant to Section 2.02 of the Basic Collateral Agency Agreement;

 

(k)           acting as agent of the Collateral Agent with respect to holding the Certificates of Title; and

 

(l)            such other activities as shall be necessary or advisable in connection with the foregoing.

 

Section 6.02.  Collection of Payments.

 

(a)           General.  The Servicer shall service, administer and collect with respect to the Collateral Assets in accordance with the Credit and Collection Policy and using the same degree of care and diligence as (i) DCFS USA employs in servicing leases and leased vehicles that are not assigned to the Titling Trust or (ii) if DCFS USA is no longer the Servicer, is customarily exercised by prudent servicers employed to service retail leases of automobiles or sport utility vehicles, as applicable, for themselves or others.  The Servicer may grant extensions, waivers, rebates, modifications or adjustments with respect to any Lease.  The Servicer may waive any late payment charge or any other fees that may be collected in the ordinary course of servicing a Lease.

 

(b)           Allocation of Collections.  The Servicer will apply and allocate amounts received from Lessees and other Persons with respect to the Leases and Vehicles.  Subject to Section 6.03, if a Lessee is obligated under one or more Vehicles relating to a Master Lease and also under one or more other assets owned by DCFS USA or assigned by DCFS USA to third parties, then any payment on any such asset received from or on behalf of such Lessee will, if identified as being made with respect to a particular item or asset, be applied to such item or asset, and otherwise will be allocated by DCFS USA in accordance with the Credit and Collection Policy.

 

(c)           Processing of Collections.  With respect to any Collections received by the Servicer:

 

(i)      Within two Business Days after receiving any check or other receipt related to a Lease or the related Vehicle, or with respect to a payment that was remitted improperly by the Lessee or that relates to an amount in dispute, within a reasonable time period, the Servicer shall enter into its computer system the following information, to the extent available: (A) the amount of the receipt, (B) the Lease Number and/or Schedule Number, in each case if applicable, to which such payment relates, (C) the nature of the payment (i.e., whether a Monthly Payment, a Payoff, proceeds of Dealer Recourse

 

 

 

  

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Rights, Net Liquidation Proceeds, Excess Mileage/Wear and Tear Fees or an Administrative Charge), (D) the date of receipt of such payment and (E) the Revolving Facility or related Reference Pool, as the case may be, to which such Lease and the related Vehicle has been allocated (collectively, the “Payment Information”).

 

(ii)     As to any such funds received by the Servicer for which the Servicer does not have all Payment Information, the Servicer shall enter into its computer system all available Payment Information and use its commercially reasonable efforts to obtain all missing Payment Information as soon as practicable and shall enter the remaining Payment Information into its computer system upon receipt thereof.

 

(iii)    By the later of the close of business on (A) the second Business Day after receipt or (B) the day on which all related Payment Information has been identified by the Servicer, the Servicer shall, except as otherwise provided herein, in the Basic Collateral Agency Agreement or in a related Servicing Supplement, either (1) deposit into the related Collection Account all such funds other than (x) Administrative Charges and (y) Disposition Expenses, Liquidation Expenses and Insurance Expenses to be reimbursed to the Servicer pursuant to Section 3.09(c) or (2) appropriately segregate and designate such funds on its records, pending application thereof pursuant to this Agreement.

 

(d)           Other Funds Received.  With respect to any other funds received by the Servicer or the Titling Trustee related to any Collateral Asset, upon receipt the Servicer shall either (i) deposit such funds to the related Collection Account or (ii) appropriately segregate and designate such funds on its records, pending application thereof pursuant to this Agreement and any applicable Servicing Supplement.

 

(e)           Manner Paid.  The Servicer will cause all Collections to be paid to or at the direction of the Titling Trust (allocated, in the case of Collections in respect of Master Leases in the manner set forth in Section 6.03).  The Servicer will cause each Lessee or other applicable Person to deposit any Collections into the Bank Accounts or accounts maintained by the Servicer.

 

Section 6.03.  Allocation of Collections on Master Leases.  Amounts received from Lessees in respect of Master Leases will be allocated to the Revolving Pool and respective Reference Pools, as applicable, to which the Vehicles relating to such Master Leases have been allocated, based on the Total Amount Due with respect to each such Vehicle; provided, however, that in the event that the Total Amount Due has not been received in any Collection Period from the related Lessee, in determining the portion of such amounts that is allocable to the Revolving Pool and each related Reference Pool, the amounts received from such Lessee will be allocated to the Revolving Pool and each such Reference Pool, in an amount equal to the product of (i) the applicable Payment Allocation Percentage and (ii) the total amount received from such Lessee with respect to such Collection Period.

 

 

  

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Section 6.04.  Servicer Advances.

 

(a)           If, as of the end of any Collection Period, the payments received during such Collection Period by or on behalf of a Lessee in respect of a Lease shall be less than the related Monthly Payment then, subject to the next sentence, on the related Deposit Date an amount equal to such Monthly Payment minus the amount actually received on such Lease during such Collection Period (each, a “Servicer Advance”) may be deposited by the Servicer into, with respect to a Lease allocated to (i) the Revolving Facility Pool, the Revolving Facility Collection Account (or the Servicer Advance shall be credited to the Revolving Facility Pool if there is no Revolving Facility Collection Account) and (ii) a Reference Pool, the related Reference Pool Collection Account.  The Servicer shall make a Servicer Advance only to the extent that the Servicer, in its sole discretion, shall determine that such Servicer Advance shall be recoverable from subsequent collections or recoveries on such Lease and the Servicer shall not be obligated to make such Servicer Advance.

 

(b)           The Servicer shall be entitled to reimbursement for an outstanding Servicer Advance made in respect of a Lease, without interest, from the following sources with respect to such Lease: (i) subsequent payments made by or on behalf of the related Lessee, (ii) any Net Liquidation Proceeds and (iii) any Repurchase Payments received with respect to the related Lease.  If, in its sole discretion, the Servicer determines that it has made a Nonrecoverable Advance, the Servicer may be reimbursed the amount of such Nonrecoverable Advance, without interest, from other Collections in respect of the Revolving Facility Pool (if the related Lease is allocated to the Revolving Facility Pool) or the related Reference Pool (if the related Lease is allocated to a Reference Pool) 

 

Section 6.05.  Other Authorized Actions with Respect to the Servicing of the Leases.

 

(a)           The Servicer is authorized to execute and deliver, on behalf of the Titling Trust and the Initial Beneficiary, any and all instruments of satisfaction or cancellation, or partial or full release or discharge, and all other comparable instruments, with respect to Collateral Assets.

 

(b)           The Servicer is authorized to, in its own name, in the name of the Titling Trust or in the name of the Titling Trustee on behalf of the Titling Trust, commence, defend against or otherwise participate in a Proceeding relating to or involving the protection or enforcement of the interests of the Titling Trust, the Titling Trustee on behalf of the Titling Trust, the Lender or an Exchange Noteholder in any Lease, Vehicle or other Collateral Asset.  If the Servicer shall engage in collection of delinquent amounts or commence, defend against or otherwise participate in a Proceeding in its own name or in the name of the Titling Trust or the Titling Trustee on behalf of the Titling Trust, the Lender or an Exchange Noteholder, each such Person shall thereupon be deemed to have automatically assigned its interest in (including legal title to) the related Lease or Vehicle, as applicable, to the Servicer to the extent necessary for the purposes of such Proceeding.  If in any Proceeding it is held that the Servicer may not enforce the rights of the Titling Trust, the Titling Trustee on behalf of the Titling Trust, the Lender or an Exchange Noteholder in a Lease, Vehicle or other Collateral Asset on the grounds that it is not the real party in interest or a holder entitled to enforce such Lease or other relevant document or instrument, the Titling Trustee shall, at the direction of the Servicer, take steps to enforce the

 

 

 

  

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interest of each related entity in such Lease, Vehicle or other Collateral Asset, including bringing suit in its own name or in the name of any of the foregoing.

 

(c)           The Titling Trust shall furnish the Servicer with all powers of attorney and other documents necessary or appropriate to enable the Servicer to carry out its servicing, administration and collection duties hereunder and under each applicable Servicing Supplement.

 

Section 6.06.  Records

 

(a)           Except as otherwise provided in a related Servicing Supplement, the Servicer shall maintain accurate and complete accounts, records and computer systems with respect to (i) all funds and other receipts with respect to the Revolving Facility Pool and the Reference Pool, (ii) the Collateral Assets and (iii) all matters related directly to the servicing of the Collateral Assets, in each case as are consistent with the Credit and Collection Policy.  Such accounts, records and computer systems shall indicate, among other things the Reference Pool, if created, to which each Collateral Lease or Collateral Vehicle is allocated and reflect the interest of the Exchange Noteholder therein.  Except where otherwise noted in the definition of “Lease Files”, the Servicer may originate and/or maintain each Lease File as an image, fiche or electronic record rather than in original form.  The Servicer shall not be required to physically segregate the Lease Files and related accounts, records and computer systems from leases, vehicle and related information and related documentation from other leases or vehicles serviced by the Servicer.

 

(b)           The Servicer shall promptly report to the Titling Trustee any material failure on the part of the Servicer to hold or retain possession of the Lease Files and maintain its accounts, records and computer systems in accordance with the requirements of this Agreement.  The Servicer shall promptly take appropriate action to remedy any such failure.

 

(c)           The Servicer shall make available to the Titling Trustee and such of its duly authorized representatives, attorneys or auditors the Lease Files and the related accounts, records and computer systems maintained by the Servicer or any subservicer or agent of the Servicer at such times during normal business hours as the Titling Trustee shall reasonable instruct at the locations where maintained pursuant to this Agreement.

 

(d)           In the exercise of its duties and powers hereunder, the Servicer may release any Lease File or other related item to the Titling Trustee or its agent or designee, as the case may be, at such place or places as the Titling Trustee may designate.  The Servicer shall not be responsible for any loss occasioned by the failure of the Titling Trustee or any such agent or designee to return any document or for any unreasonable delay in doing so.

 

(e)           The Servicer shall develop and maintain back-up procedures and other safeguards against the destruction, loss or alteration of data as well as a disaster recovery system.  Such procedures, safeguards and disaster recovery system shall include procedures for creating and maintaining back-up files, maintaining computer tapes, disks and/or documents in off-site storage, and maintaining a battery or generator back-up system for the Servicer’s computer system, and shall meet the requirements of Applicable Law.

 

 

  

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(f)           The Servicer shall implement reasonable security measures and procedures to protect data, records and other documents related to its duties hereunder from unauthorized access by third parties.

 

Section 6.07.  Custodial Duties of Servicer.  The Servicer shall serve as custodian of the Lease Files, which are hereby constructively delivered to the Titling Trust with respect to each Collateral Lease and Collateral Vehicle.  In its capacity as custodian, the Servicer shall maintain possession of the Lease Files as agent and bailee for the benefit of the Titling Trust and all present and future Exchange Noteholders.  All Lease Files shall be identified and maintained in such a manner so as to permit retrieval and access.  With respect to any Collateral Assets that are allocated to a Reference Pool pursuant to an Exchange Note Supplement, the custodial duties of the Servicer as related to the Lease Files relating to such allocated Leases and Vehicles will be set forth in the related Servicing Supplement.

 

Section 6.08.  Maintenance of Record Interests in Vehicles.  In accordance with the Titling Trust Agreement, the Servicer, on behalf of the Collateral Agent, will take the steps necessary to maintain evidence of the interest of the Titling Trust in each Vehicle held by the Titling Trust on the related Certificate of Title.  The Titling Trust authorizes the Servicer to take the steps on its behalf necessary to record the interest of the Titling Trust in the event of the relocation of a Vehicle or for any other reason.  Neither the Servicer nor the Collateral Agent will allow any Vehicle to be titled in the name of the Titling Trust unless the related Certificate of Title has been issued by a state or jurisdiction that is an Eligible State with respect to the Titling Trust.

 

Section 6.09.  Pull Ahead Leases.  If a Pull Ahead Program is instituted, any Lease subject to such Pull Ahead Program shall become a Pull Ahead Lease as of the end of the Collection Period during which the related Lessee elected to terminate the Lease prior to its Maturity Date by delivery of the related Vehicle to a Dealer and payment of any required Monthly Payments and any other required amount pursuant to such Pull Ahead Program.  No Lessee shall be permitted to participate in any Pull Ahead Program unless it has paid all amounts due and payable by the Lessee under the related Lease on or before the date of such Lessee’s election to terminate such Lease (other than (i) Excess Mileage/Wear and Tear Fees, which shall be charged to such Lessee to the extent applicable in accordance with such Lease and the Credit and Collection Policy and (ii) any remaining Monthly Payments that have been waived pursuant to such Pull Ahead Program).  The Servicer shall cause the related Pull Ahead Payment Provider to remit to it all Pull Ahead Payments relating to Pull Ahead Leases in accordance with the terms of the related Pull Ahead Program, including pursuing applicable legal remedies if such payments are not paid.

 

Section 6.10.  No Impairment.  The Servicer may not impair the rights of the Titling Trust in a Lease or Vehicle except in accordance with the Credit and Collection Policy or as otherwise permitted by this Agreement.

 

Section 6.11.  Servicer to Act on Behalf of Titling Trustee.  The Servicer shall be deemed to have received proper instructions with respect to any of the books and records relating to the Collateral Assets, including any Lease File, upon receipt of written instructions by the Titling Trust.

 

 

 

  

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ARTICLE SEVEN

 

SALE OR OTHER DISPOSITION OF VEHICLES

 

Section 7.01.  Termination of Leases; Return of Vehicles.  Subject to Section 6.05(b) and any applicable Servicing Supplement, the Servicer shall use commercially reasonable efforts to sell or otherwise dispose of any Matured Vehicle not purchased by the Lessee or a Dealer and to repossess or recover and sell or otherwise dispose of any Liquidated Vehicle.  In accordance with the foregoing standards, the Servicer shall follow the Credit and Collection Policy, which may include (i) engaging in self-help repossession to the extent permitted under Applicable Law, (ii) exercising efforts to realize upon Dealer Recourse Rights as the Servicer may determine in its sole discretion, (iii) consigning a Vehicle to a Dealer for resale or re-lease (to the extent permitted by applicable law), (iv) selling a Vehicle at public or private sale in a commercially reasonable manner, (v) commencing and prosecuting Proceedings with respect to such Lease or the related Vehicle or (vi) taking any actions as are necessary or desirable in order to transfer a Vehicle in a transaction that qualifies or will qualify as a Like Kind Exchange, in each case in compliance with the related Lease and all Applicable Laws.

 

Section 7.02.  Expenses Relating to Vehicle Sales and Dispositions.  The Servicer shall not be required to expend its own funds in repairing a Vehicle that has been damaged by reason of an event for which the related Lessee was not required under its Lease to obtain casualty or other insurance or maintain such insurance in full force and effect, unless the Servicer shall reasonably determine that such expenditure is likely to enhance Net Liquidation Proceeds.  The Servicer shall expend funds in connection with the repossession and recovery or sale or other disposition of any Vehicle (and such expense shall be deemed a Liquidation Expense) only to the extent that it reasonably determines that anticipated Liquidation Expenses will not exceed anticipated Liquidation Proceeds.  Except as otherwise provided in the related Servicing Supplement, the Servicer shall be reimbursed for Disposition Expenses and Liquidation Expenses as provided in Section 3.09(c).  The Titling Trust shall grant to the Servicer a Power of Attorney, and the Servicer, as “grantee” thereunder, with full power of substitution, shall give prompt notice to the Titling Trust upon any such substitution.

 

Section 7.03.  Sale and Disposition Procedures.

 

(a)           In connection with the sale or other disposition of a Vehicle, the Servicer will, upon receipt of proceeds of such sale, (i) on behalf of the Collateral Agent, deliver the related Certificate of Title to the purchaser of such Vehicle, (ii) if such Vehicle is a Collateral Agent Vehicle, cause the lien on the Certificate of Title in favor of the Collateral Agent to be removed, (iii) deliver notice of such sale or other disposition to the Titling Trust Administrator (if DCFS USA is not the Titling Trust Administrator) and (iv) change its records to reflect the termination of the Titling Trust’s interest in such Lease and Vehicle.

 

(b)           Notwithstanding any other provision of this Agreement, in the event that any Vehicle is sold or otherwise disposed of by the Servicer, each of the Titling Trust and the Lender will be deemed automatically to release, and immediately prior to such sale or other disposition, does hereby agree to release at such time, any and all Liens and other rights and interests it possesses or may possess from time to time, without further action of the parties, in, to and nder 

 

 

 

  

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such Vehicle, the proceeds thereof (including pursuant to any Insurance Policy) with respect to or covering such Vehicle and any contract or agreement for the sale or other disposition of such Vehicle.  Notwithstanding the foregoing, nothing herein shall constitute a release of any rights under the Basic Documents to receive an amount equal to the proceeds of such sale or other disposition.  The foregoing release shall not affect the obligations of the Servicer to enter Payment Information with respect to such Vehicle in accordance with this Agreement.

 

Section 7.04.  Security Deposits.  The Servicer shall treat all security deposits remitted to it (or deemed remitted to it) in accordance with the Credit and Collection Policy as agent, custodian and bailee for the Titling Trust and as proceeds of the Leases, pending application of the proceeds thereof pursuant to this Section.  The Servicer shall apply the proceeds of each security deposit in accordance with Applicable Law, the Credit and Collection Policy and the terms of the related Lease, including payment of shortfalls resulting from the related Lessee’s default or failure to make payments required by the related Lease or from damage to the related Vehicle.  Upon termination of a Lease, the Servicer shall return to the related Lessee any portion of the related security deposit remaining after deducting any amounts permitted under Applicable Law and the related Lease.  To the extent permitted by Applicable Law and the related Lease, if a Lease becomes a Defaulted Lease or a Liquidated Lease, then the related security deposit shall become Liquidation Proceeds, which the Servicer shall apply (net of any Liquidation Expenses) to amounts owed by the related Lessee under such Lease.  Except as otherwise required by Applicable Law, (i) the Servicer shall not be required to segregate security deposits from its own funds and (ii) any income earned from any investment on the security deposits by the Servicer shall be for the account of the Servicer as additional compensation.

 

 

ARTICLE EIGHT

 

SERVICER DEFAULT

 

Section 8.01.  Facility Servicer Event of Default.

 

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

 

(b)           The Servicer will notify the Covered Parties of any Facility Servicer Event of Default, no later than two Business Days after an Authorized Officer of the Servicer obtains knowledge of such event.

 

(c)          If a Facility Servicer Event of Default has occurred, all of the rights and obligations (other than the rights and obligations of the Servicer set forth in Section 3.03) of the Servicer under this Agreement may be terminated by: (i) so long as any Exchange Notes remain Outstanding, the Exchange Noteholders representing at least 50% of the aggregate Exchange Note Balance (voting as a single class), (ii) if there are no Exchange Notes Outstanding, but the Revolving Facility Balance is greater than zero or the Revolving Facility has not been terminated, the Lender and (iii) otherwise, the Titling Trust, in each case by notice to the Servicer, the Administrative Agent, the Lender, the Collateral Agent and each Exchange Noteholder.

 

 

  

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Section 8.02.  Revolving Facility Servicer Events of Default.

 

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

 

(i)      any failure by the Servicer to deliver to the Collateral Agent or the Administrative Agent, or deposit into the Revolving Facility Collection Account, any proceeds or payment required to be so delivered with respect to the Revolving Facility Pool under this Agreement that continues unremedied for five Business Days after the earlier of the date on which (A) notice of such failure is given to the Servicer by the Lender or (B) an Authorized Officer of the Servicer has actual knowledge of such failure; or

 

(ii)      any failure by the Servicer to observe or to perform in any material respect any other covenants or agreements of the Servicer set forth in this Agreement with respect to the Revolving Facility which failure (A) materially and adversely affects the rights of the Administrative Agent or the Lender and (B) continues unremedied for a period of 30 days after the earlier of the date on which (1) notice of such failure is given to the Servicer by the Administrative Agent or the Lender or any Exchange Noteholder or (2) an Authorized Officer of the Servicer has actual knowledge of such failure.

 

(b)           The Servicer will notify the Covered Parties of any event that with the giving of notice or lapse of time, or both, would become a Revolving Facility Servicer Event of Default, no later than two Business Days after an Authorized Officer of the Servicer obtains knowledge of such event.  However, the Servicer is not required to provide such notice if, during such two Business Days, such event has been cured.

 

(c)           If a Revolving Facility Servicer Event of Default occurs and has not been remedied, all of the rights and obligations (other than the rights and obligations of the Servicer set forth in Section 3.03) of the Servicer under this Agreement, but solely with respect to the servicing of the Revolving Facility Pool, may be terminated by, (i) if the Revolving Facility Balance is greater than zero or the Revolving Facility has not been terminated, the Lender and (ii) otherwise, the Titling Trust, in each case by notice to the Servicer, the Administrative Agent, the Collateral Agent and the Lender.

 

Section 8.03.  Exchange Note Servicer Events of Default.

 

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

 

(i)      any failure by the Servicer to deliver to the Administrative Agent any proceeds or payment required to be so delivered with respect to an Exchange Note under this Agreement or the applicable Servicing Supplement that continues unremedied for two Business Days after the earlier of the date on which (A) notice of such failure is given to the Servicer by the Administrative Agent or (B) an Authorized Officer of the Servicer has actual knowledge of such failure;

 

 

  

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(ii)      any failure by the Servicer to observe or to perform in any material respect any other covenants or agreements of the Servicer with respect to an Exchange Note set forth in this Agreement or the applicable Servicing Supplement which failure (A) materially and adversely affects the rights of the Administrative Agent or the related Exchange Noteholder and (B) continues unremedied for a period of 30 days after an Authorized Officer of the Servicer has actual knowledge of such failure or notice of such failure is given to the Servicer by the Administrative Agent or the related Exchange Noteholder; or

 

(iii)     with respect to a particular Reference Pool, any “Additional Exchange Note Servicer Event of Default” specified in the related Servicing Supplement.

 

(b)           The Servicer will notify the Covered Parties of any event that with the giving of notice or lapse of time, or both, would become an Exchange Note Servicer Event of Default, no later than two Business Days after an Authorized Officer of the Servicer obtains knowledge of such event.  However, the Servicer is not required to provide such notice if, during such five Business Days such event has been cured.

 

(c)           If an Exchange Note Servicer Event of Default occurs and has not been remedied, all of the rights and obligations (other than the rights and obligations of the Servicer set forth in Section 3.03) of the Servicer under this Agreement, but solely with respect to the servicing of the related Reference Pool, may be terminated by, (i) so long as the related Exchange Note remains Outstanding, the related Exchange Noteholder and (ii) if the related Exchange Note is not Outstanding, the Lender, in each case by notice to the Servicer, the Administrative Agent and the Collateral Agent.

 

Section 8.04.  Appointment of Successor Servicer.

 

(a)           Upon the receipt by the Servicer of a notice of termination pursuant to Sections 8.01, 8.02 or 8.03 (or such later date as may be specified in such notice of termination), all authority and power of the Servicer under this Agreement (in the case of a termination pursuant to Sections 8.02 or 8.03, solely to the extent of the rights so terminated) will pass to and be vested in the successor Servicer as may be appointed under this Section.  In such event, the Titling Trust, the Lender, the Administrative Agent and the Collateral Agent are authorized and empowered to execute and deliver, on behalf of the predecessor Servicer, as attorney-in-fact or otherwise, any and all documents and other instruments, and to do or accomplish all other acts or things necessary or appropriate to effect the termination and replacement of the Servicer (in the case of a termination pursuant to Sections 8.02 or 8.03, to the extent of the rights so terminated).

 

(b)           Upon termination of the Servicer pursuant to Sections 8.01, 8.02 or 8.03, the predecessor Servicer will cooperate with the successor Servicer, the Lender, the Administrative Agent, the Collateral Agent and the Titling Trust in effecting the termination of the responsibilities and rights of the predecessor Servicer under this Agreement (in the case of a termination pursuant to Sections 8.02 or 8.03, to the extent of the rights so terminated), including, as soon as practicable, (i) the transfer to such successor Servicer for administration by it of all cash amounts relating to the Collateral (or, in the case of a termination pursuant to Sections 8.02 or 8.03, the applicable portion of the Collateral) that are held by the predecessor

 

 

 

  

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Servicer for deposit, or thereafter will be received with respect to the Collateral (or such portion thereof, as the case may be) and (ii) the delivery of the related Lease Files and the related accounts and records maintained by the Servicer.  In no event, however, will the Servicer be obligated to provide or license its proprietary servicing procedures, processes, models, software or other applications to any successor Servicer or any third party.  All reasonable costs and expenses (including attorneys’ fees) incurred by the successor Servicer in connection with amending this Agreement or any applicable Servicing Supplement to reflect such succession as Servicer pursuant to this Article will be paid by the predecessor Servicer upon presentation of reasonable documentation of such costs and expenses.

 

(c)           If the Servicer is terminated pursuant to Sections 8.01, 8.02 or 8.03, it will continue to perform its functions as Servicer under this Agreement until the date specified in the notice of termination.  If the Servicer resigns pursuant to Section 3.06, it will continue to perform its functions as Servicer under this Agreement until the later of (i) the date 45 days from the delivery to the parties hereto and the other Covered Parties of notice of such resignation in accordance with this Agreement and (ii) the date upon which the Servicer is legally unable to act as Servicer, as specified in the notice of resignation and accompanying Opinion of Counsel.  If the Servicer resigns or is terminated under this Agreement, the Administrative Agent (so long as the Collateral Agency Agreement is in effect) and, thereafter, the Titling Trust will (i) in the case of the Administrative Agent, provide notice of such termination or resignation to the Titling Trust and the Collateral Agent and (ii) as promptly as possible, appoint an established institution having a net worth of not less than $50 million whose regular business includes the servicing of automotive leases and the related leased vehicles, as the successor to the Servicer under this Agreement (in the case of a termination pursuant to Sections 8.02, or 8.03, solely to the extent of the rights so terminated).  Such successor will accept its appointment by (i) entering into a Servicing Agreement with the Titling Trust, the Lender and the Collateral Agent having substantially the same provisions as the provisions of this Agreement applicable to the Servicer (as modified, to the extent applicable, by any related Servicing Supplement), in a form acceptable to the Titling Trust, the Lender (with respect to the servicing of the Revolving Facility Pool only), the Collateral Agent and, in the case of a termination pursuant to Section 8.03, the Exchange Noteholder of the related Exchange Note) and (ii) delivering a copy of such Servicing Agreement to the parties to such agreement, the Administrative Agent and, if applicable, the Exchange Noteholder of any related Outstanding Exchange Note.

 

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

 

(e)           Upon its acceptance of its appointment as successor Servicer, the successor Servicer will be the successor in all respects to the predecessor Servicer, and will be subject to all of the responsibilities, duties, and liabilities following such successor Servicer’s appointment placed on the predecessor Servicer relating to such predecessor Servicer’s performance of its duties as Servicer (in the case of a termination pursuant to Sections 8.02 or 8.03, to the extent of the rights so terminated).

 

 

  

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(f)           In connection with any appointment of a successor Servicer, the Administrative Agent (so long as the Collateral Agency Agreement is in effect) and, thereafter, the Titling Trust, may make such arrangements for the compensation of such successor Servicer out of Collections and other property constituting a part of the Collateral (but solely to the extent of the Collateral relating to the rights so terminated) as it and such successor Servicer may agree.  The Administrative Agent (so long as the Collateral Agency Agreement is in effect) and, thereafter, the Titling Trust and the predecessor Servicer will take such action, consistent with this Agreement, as will be necessary to effectuate any such succession.

 

Section 8.05.  Waiver of Servicer Event of Default.  The Person(s) entitled to remove the Servicer pursuant to Sections 8.01, 8.02 or 8.03 may waive any related Servicer Event of Default, as the case may be, and its consequences.  Upon any such waiver, the applicable Servicer Event of Default will cease to exist, and will be deemed to have been remedied for every purpose of this Agreement.  No such waiver will extend to any subsequent or other event or impair any right consequent thereon.

 

 

ARTICLE NINE

 

REPORTING

 

Section 9.01.  Monthly Revolving Facility Reports.  Each month, the Servicer will make available to the Lender, the Collateral Agent, the Administrative Agent, the Titling Trust and the Titling Trust Administrator (so long as DCFS USA is not the Titling Trust Administrator), a Monthly Revolving Facility Report.

 

Section 9.02.  Monthly Exchange Note Reports.  Except as otherwise provided in the related Servicing Supplement, each month, the Servicer will deliver to the Lender, the Collateral Agent, the Administrative Agent, the related Exchange Noteholder and any entities listed in the related Servicing Supplement a Monthly Exchange Note Report.

 

Section 9.03.  Annual Statement as to Compliance.  The Servicer will deliver to each Exchange Noteholder, each Rating Agency and each other Person so specified in any Servicing Supplement on or before April 30 of each year, beginning April 30, 2010, an Officer’s Certificate, dated as of December 31 of the preceding calendar year, stating that (i) a review of the activities of the Servicer during the preceding calendar year and of its performance under this Agreement has been made under such officer’s supervision and (ii) to such officers’ knowledge, based on such review, the Servicer has fulfilled all its obligations in respect of the related Exchange Note and Reference Pool under this Agreement throughout such year in all material respects, or, if there has been a default in the fulfillment of any such obligation in any material respect and such default is continuing, specifying each such default known to such officers and the nature and status of such default.  Notwithstanding the foregoing, the Servicer will not be required to comply with the requirements of this Section if DCFS USA is the sole Holder and no Exchange Notes have been issued.

 

Section 9.04.  Annual Independent Certified Public Accountants’ Report.  In the event that debt obligations secured by an Exchange Note are issued by the related Exchange Noteholder, the Servicer will cause a firm of nationally recognized Independent certified public 

 

 

  

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accountants to deliver to the related Exchange Noteholder and any owner trustee and indenture trustee involved with respect to such debt offering, on or before April 30 of each year, beginning April 30, 2010, a report with respect to the preceding calendar year addressed to the board of directors of the Servicer, stating that an audit (i) was made in accordance with generally accepted auditing standards that included tests relating to automotive leases serviced for others in accordance with the requirements of the Uniform Single Attestation Program for Mortgage Bankers or any successor program (the “Program”), to the extent the procedures in such Program are applicable to the servicing obligations set forth in this Agreement and the related Servicing Supplement and (ii) except as described in the report, disclosed no exceptions or errors in the records relating to motor vehicle leases serviced for others that such firm is required to report under the Program.  Notwithstanding the foregoing, the Servicer will not be required to comply with the requirements of this Section, if DCFS USA is the sole Holder and no Exchange Notes have been issued.  In the event such accounting firm requires an indenture trustee involved with respect to such debt offering to agree to the procedures performed by such firm, the Servicer shall direct such indenture trustee in writing to so agree; it being understood and agreed that the indenture trustee will deliver such letter of agreement in conclusive reliance upon the direction of the Servicer, and the indenture trustee shall not make any independent inquiry or investigation as to, and shall have no obligation or liability in respect of, the sufficiency, validity or correctness of such procedures.  Delivery of such reports, information and documents to the indenture trustee is for informational purposes only, and the indenture trustee’s receipt of such shall not constitute constructive notice of any information contained therein or determinable from information contained therein, including the Servicer’s compliance with any of its covenants under this Agreement and the related Servicing Supplement.

 

Section 9.05.  Other Notices.

 

(a)           Notice of Merger or Consolidation of or Assumption of the Obligations of, Servicer.  The Servicer will notify the Covered Parties of any merger, consolidation or succession pursuant to Section 3.04 (other than in the case of a corporate reorganization involving only DCFS USA and/or one or more of its Affiliates) within 15 Business Days after any such event.

 

(b)           Notice of Third Party Claims.  The Servicer will notify the Covered Parties within 15 Business Days following the date on which an Authorized Officer of the Servicer becomes aware of a claim by a third party with respect to any Titling Trust Asset, which claim could reasonably be expected to have a material adverse effect on any party hereto, the Administrative Agent, any Exchange Noteholder or any trust established by an Exchange Noteholder.

 

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

 

(d)           Updating List of Authorized Officers.  The Servicer may from time to time designate the individuals who are authorized to act as “Authorized Officers” with respect to the Servicer pursuant to an Officer’s Certificate distributed to the Covered Parties, the Titling Trust

 

 

 

  

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Administrator and each other Person entitled to any such notice pursuant to the terms of a Servicing Supplement.

 

 

ARTICLE TEN

 

MISCELLANEOUS

 

Section 10.01.  Amendments.  This Agreement may be amended from time to time by the parties hereto with the consent of the related Exchange Noteholders (which consent shall be given as set forth in the related Servicing Supplement), unless the Servicer delivers an Opinion of Counsel to the other parties hereto that any such amendment will not materially adversely affect the interests of any Exchange Noteholders (other than Exchange Noteholders who have consented to such amendment), in which case no such consent shall be required.  In connection with each amendment of this Agreement, the Servicer shall deliver an Opinion of Counsel to the other parties hereto that such amendment will not cause the Titling Trust to be classified as an association (or publicly traded partnership) taxable as a corporation for U.S. federal income tax purposes.

 

Section 10.02.  No Legal Title to Titling Trust Assets.  The Servicer will not have legal title to any Titling Trust Assets.  Legal title to the Titling Trust Assets will remain with the Titling Trust.

 

Section 10.03.  Tax Characterization.  None of the parties to this Agreement will elect or permit an election to be made to treat the Titling Trust or the Daimler Retail Specified Interest as an association taxable as a corporation for U.S. federal income tax purposes pursuant to Treasury Regulations 301.7701-3.

 

Section 10.04.  Notices.  Unless otherwise specified in this Agreement, all notices, requests, demands, consents, waivers or other communications to or from the parties to this Agreement will be in writing.  Notices, requests, demands, consents and other communications will be deemed to have been given and made, (i) upon delivery or, in the case of a letter mailed via registered first class mail, postage prepaid, three days after deposit in the mail and (ii) in the case of (a) a facsimile, when receipt is confirmed by telephone or by reply email or reply facsimile from the recipient, (b) an e-mail, when receipt is confirmed by telephone or by reply email from the recipient and (c) an electronic posting to a password-protected website, upon printed confirmation of the recipient’s access to such password-protected website, or when notification of such electronic posting is confirmed in accordance with clauses (ii)(b) through (ii)(c) above.  Unless otherwise specified in this Agreement, any such notice, request, demand, consent or other communication will be delivered or addressed, in the case of (i) the parties to this Agreement, as set forth on Schedule I or at such other address or facsimile number as any party may designate by notice to the other parties or (ii) the Titling Trust Administrator, at its address, at its address provided in the Titling Trust Agreement.

 

Section 10.05.  Third-Party Beneficiaries.  This Agreement will inure to the benefit of and be binding upon the parties to this Agreement and their assigns and for the benefit of any owner trustee or indenture trustee with respect to debt obligations issued by an Exchange Noteholder and secured by an Exchange Note or other party that may be specified in the 

 

 

  

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Servicing Supplements, each of which will be considered to be a third-party beneficiary of this Agreement.  Except as otherwise provided in this Agreement, no other Person will have any right or obligation under this Agreement.

 

Section 10.06.  No Petition.  Each of the Servicer, the Collateral Agent and the Initial Beneficiary covenants and agrees that for a period of one year and one day (or, if longer, any applicable preference period) after payment in full of all Exchange Notes and all outstanding Securities, it will not institute against, or join any Person in instituting against, the Titling Trust or the Initial Beneficiary any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any Insolvency Law in connection with any obligations relating to any of the Basic Documents.

 

Section 10.07.  GOVERNING LAW; SUBMISSION TO JURISDICTION.

 

(a)           THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

(b)           Each party to this Agreement submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for purposes of all Proceedings arising out of or relating to this Agreement or the transactions contemplated by the Basic Documents.  Each party to this Agreement irrevocably waives, to the fullest extent it may do so, any objection that it may now or hereafter have to the laying of the venue of any such Proceeding brought in such a court and any claim that any such Proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 10.08.  WAIVER OF JURY TRIAL.  EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OTHER BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT OR ANY SUCH OTHER BASIC DOCUMENT.

 

Section 10.09.  Severability.  If any one or more of the covenants, agreements, provisions or terms of this Agreement is held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms will be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and will in no way affect the validity, legality or enforceability of the other covenants, agreements, provisions and terms of this Agreement.

 

 

 

  

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Section 10.10.  Counterparts.  This Agreement may be executed in any number of counterparts, each of which will be an original, and all of which will together constitute one and the same instrument.

 

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

 

Section 10.12.  Further Assurances.  The Servicer agrees to do and perform any and all acts and to execute any and all further instruments required or reasonably requested by the other parties hereto or by the Initial Beneficiary to more fully effect the purposes of this Agreement, including the execution of any financing statements or continuation statements relating to the Trust Estate for filing under the provisions of the UCC of any applicable jurisdiction.

 

Section 10.13.  Agent for Service.  Upon the issuance of an Exchange Note, each of the Servicer and the Titling Trust shall appoint an agent for service in respect of this Agreement.

 

Section 10.14.  No Recourse.  It is expressly understood and agreed by the parties hereto that (i) this Agreement is executed and delivered by BNYM, not individually or personally but solely as trustee of the Titling Trust, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on the part of Titling Trust is made and intended not as personal representations, undertakings and agreements by BNYM but is made and intended for the purpose of binding only Titling Trust, (iii) nothing herein contained shall be construed as creating any liability on BNYM, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any Person claiming by, through or under the parties hereto and (iv) under no circumstances shall BNYM be personally liable for the payment of any indebtedness or expenses of the Titling Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by Titling Trust under this Agreement or any other related documents.

 

 

  

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

 

 

	 	
DCFS USA LLC,

as Lender

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/         Andree Ohmstedt	 
	 	 	Name:  Andree Ohmstedt	 
	 	 	Title:    Vice President and Controller	 
	 	 	 	 

 

	 	
DCFS USA LLC,

as Servicer

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/         Andree Ohmstedt	 
	 	 	Name:  Andree Ohmstedt	 
	 	 	Title:    Vice President and Controller	 
	 	 	 	 

 

	 	
DAIMLER TRUST,

as Titling Trust

	 
	 	 	 	 
	 	 	 	 
	 	By: 	BNY MELLON TRUST OF DELAWARE (f/k/a BNYM (Delaware)) (f/k/a The Bank of New York (Delaware)), not in its individual capacity but solely as Titling Trustee	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	/s/         Kristine K. Gullo	 
	 	 	Name:   Kristine K. Gullo	 
	 	 	Title:     Vice President	 
	 	 	 	 

 

 

	 	
DAIMLER TITLE CO.,

as Collateral Agent

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

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

 

 

 

  

31

  

 

 

AGREED AND ACKNOWLEDGED:

 

BNY MELLON TRUST OF DELAWARE

(f/k/a BNYM (Delaware)) (f/k/a The Bank

of New York (Delaware)), not in its

individual capacity but solely as Titling

Trustee of the Titling Trust

 

 

	By:	Kristine K. Gullo	 	 
	 	Name:    Kristine K. Gullo	 	 
	 	Title:      Vice President	 	 
	 	 	 	 

 

 

 

  

32

  

 

EXHIBIT A

 

LOCATIONS OF LEASE FILES

 

On file with DCFS USA LLC

 

 

 

 

  

A-1

  

EXHIBIT B

 

FORM OF MONTHLY REVOLVING FACILITY REPORT

 

On file with DCFS USA LLC

 

 

 

 

 

 

  

B-1

  

 

 

 

SCHEDULE I

 

ADDRESSES FOR NOTICE

 

On file with DCFS USA LLC

 

	
(A)    In the case of DCFS USA:

	
DCFS USA LLC

35455 Corporate Drive

Farmington Hills, Michigan  48331

Attention: Steven C. Poling

Fax: 248-991-6962

 

	
(B)    In the case of the Titling Trust:

	
c/o BNY Mellon Trust of Delaware

100 White Clay Center

Route 273, P.O. Box 6995

Newark, Delaware 19714

Attention: Kristine K. Gullo

Fax: 302-453-4400

Telephone: 302-283-8905

 

	
(C)    In the case of Holdings:

	
c/o DCFS USA LLC

36455 Corporate Drive

Farmington Hills, Michigan  48331

Attention: Steven C. Poling

Fax: 248-991-6962

 

	
(D)    In the case of the Titling Trustee:

	
BNY Mellon Trust of Delaware

100 White Clay Center

Route 273, P.O. Box 6995

Newark, Delaware  19711

Attention: Kristine K. Gullo

Fax: 302-453-4400

Telephone: 302-283-8905

 

	
(E)    In the case of the Titling Trust Administrator:

	
DCFS USA LLC, as Titling Trust Administrator

1011 Warrenville Road, Suite 600

Lisle, Illinois  60532

Attention: Dawn Beck

Fax: 630-241-6750

 

 

 

 

 

  

S1-1

  

 

 

 

 

 

 

	
With a copy to:

 

	
c/o DCFS USA LLC

36455 Corporate Drive

OGC 4W

Farmington Hills, Michigan  48331

Attention: Steven C. Poling

Fax: 248-991-6962

 

 

 

 

 

S1-2Unassociated Document

 Exhibit 10.4

 

 

 

 

 

MERCEDES BENZ FINANCIAL SERVICES USA LLC,

as Servicer and as Lender,

 

DAIMLER TRUST,

as Titling Trust,

 

and

 

 

DAIMLER TITLE CO.,

as Collateral Agent

 

____________________________

 

 

FORM OF 201[__]-[__] SERVICING SUPPLEMENT

 

Dated as of [____ __], 201[__]

 

____________________________

 

 

 

 

 

 

 

 

 

  

  

  

 

 

 

 

 

 

	 	 TABLE OF CONTENTS   	 
	 	 	 
	 	 	 Page
	 	 	 
	  	
ARTICLE ONE

 

USAGE AND DEFINITIONS

	  
	  	  	  
	
Section 1.01.

	
 Capitalized Terms; Rules of Usage.

 

	
2

	  	
ARTICLE TWO

 

DESIGNATION

	  
	  	  	  
	
Section 2.01.

	
Designation

 

	
3

	  	
ARTICLE THREE

 

THE SERVICER

	  
	  	  	  
	
Section 3.01.

	
 Appointment of Servicer.

	
4

	
Section 3.02.

	
Servicer Representations and Warranties.

	
4

	
Section 3.03.

	
 201[__]-[__] Lease and 201[__]-[__] Vehicle Representations and Warranties

	
5

	
Section 3.04.

	
 Liability of the Servicer; Indemnities.

	
5

	
Section 3.05.

	
 Purchase Upon Breach.

	
5

	
Section 3.06.

	
 Collection of Payments

	
7

	
Section 3.07.

	
Servicer May Own 201[__]-[__] Exchange Note and 201[__]-[__] ABS Notes

	
7

	
Section 3.08.

	
Fees and Expenses.

	
7

	
Section 3.09.

	
Termination

 

	
7

	  	
ARTICLE FOUR

 

ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS

	  
	  	  	  
	
Section 4.01.

	
 201[__]-[__] Bank Accounts.

	
8

	
Section 4.02.

	
 Remittances.

 

	
9

	  	
ARTICLE FIVE

 

TERMINATION

	  
	  	  	  
	
Section 5.01.

	
Optional Termination.

 

	
10

 

 

 

 

 

  

i

  

 

 

 

 

	  	
ARTICLE SIX

 

REPORTS AND NOTICES

	  
	  	  	  
	
Section 6.01.

	
 Monthly Reports.

	
11

	
Section 6.02.

	
 Notices and Certificates Under the Basic Servicing Agreement

	
11

	
Section 6.03.

	
 Annual Officer’s Certificate.

	
11

	
Section 6.04.

	
 Annual Independent Public Accountants’ Attestation.

	
12

	
Section 6.05.

	
Statements to Securityholders

 

	
12

	  	
ARTICLE SEVEN

 

SERVICER EVENTS OF DEFAULT

	  
	  	  	  
	
Section 7.01.

	
 Servicer Events of Default.

 

	
13

	  	
ARTICLE EIGHT

 

MISCELLANEOUS

	  
	  	  	  
	
Section 8.01.

	
Amendments.

	
16

	
Section 8.02.

	
Successors and Assigns

	
16

	
Section 8.03.

	
Third-Party Beneficiaries

	
17

	
Section 8.04.

	
No Petition

	
17

	
Section 8.05.

	
GOVERNING LAW; SUBMISSION TO JURISDICTION.

	
17

	
Section 8.06.

	
WAIVER OF JURY TRIAL

	
17

	
Section 8.07.

	
Severability

	
17

	
Section 8.08.

	
Counterparts

	
18

	
Section 8.09.

	
Table of Contents and Headings

	
18

	
Section 8.10.

	
Conflict with Basic Servicing Agreement

	
18

	
Section 8.11.

	
No Recourse

	
18

	
Section 8.12.

	
Each Exchange Note Separate; Assignees of Exchange Note

	
18

	  	  	  

 

	  	
EXHIBITS

 

	  
	
Exhibit A    –

	
201[__]-[__] Reference Pool Asset Schedule

	
A-1

	
Exhibit B    –

	
201[__]-[__] Lease and 201[__]-[__] Vehicle Representations and Warranties

	
B-1

	
Exhibit C    –

	
Monthly Investor Report

	
C-1

	
Exhibit D   –

	
Form of Performance Certification

	
D-1

	
Exhibit E    –

	
Servicing Criteria to be Addressed in Assessment Of Compliance

	
E-1

 

 

 

 

 

 

  

ii

  

 

This 201[__]-[__] SERVICING SUPPLEMENT, dated as of [____ __], 201[__] (as amended, restated, supplemented or otherwise modified from time to time, this “201[__]-[__] Servicing Supplement”), is among MERCEDES BENZ FINANCIAL SERVICES USA LLC, a Delaware limited liability company (“MBFS USA”), as servicer with respect to the 201[__]-[__] Reference Pool referred to herein (in such capacity, the “Servicer”) and as lender under the Collateral Agency Agreement referred to herein (in such capacity, the “Lender”), DAIMLER TRUST, a Delaware statutory trust (the “Titling Trust”), and DAIMLER TITLE CO., a Delaware corporation, as collateral agent (the “Collateral Agent”).

 

RECITALS

 

WHEREAS, pursuant to a Second Amended and Restated Trust Agreement, dated as of April 1, 2008 (the “Titling Trust Agreement”), among MBFS USA, Daimler Trust Holdings LLC and BNY Mellon Trust of Delaware (f/k/a BNY Mellon (Delaware)) (f/k/a The Bank of New York (Delaware)), the Titling Trust was created to hold title to leases, vehicles and certain related assets (the “Titling Trust Assets”);

 

WHEREAS, the Lender, the Servicer, the Titling Trust and the Collateral Agent have entered into an Amended and Restated Servicing Agreement, dated as of March 1, 2009 (the “Basic Servicing Agreement”), which provides, for, among other things, the servicing of the Titling Trust Assets by the Servicer;

 

WHEREAS, the Lender, the Servicer, the Titling Trust, the Collateral Agent and U.S. Bank Trust National Association have entered into an Amended and Restated Collateral Agency Agreement, dated as of March 1, 2009 (the “Basic Collateral Agency Agreement”), pursuant to which MBFS USA will make advances to the Titling Trust from time to time to acquire Titling Trust Assets;

 

WHEREAS, pursuant to the Basic Collateral Agency Agreement and an Exchange Note Supplement, dated as of [____ __], 201[__] (the “201[__]-[__] Exchange Note Supplement”), among the parties to the Basic Collateral Agency Agreement and [______________________], as Indenture Trustee, the Lender will assign its interest in a portion of its outstanding advances to be evidenced by an exchange note (the “201[__]-[__] Exchange Note”), payments in respect of which shall be made from collections in respect of a pool of specified Titling Trust Assets (the “201[__]-[__] Reference Pool”);

 

WHEREAS, the Lender, on the date hereof, has sold the 201[__]-[__] Exchange Note to Daimler Trust Leasing LLC (the “Transferor”) pursuant to a First-Tier Sale Agreement, dated as of [____ __], 201[__] (the “First-Tier Sale Agreement”);

 

WHEREAS, Daimler Trust Leasing LLC, on the date hereof, has sold the 201[__]-[__] Exchange Note to Mercedes-Benz Auto Lease Trust 201[__]-[__] pursuant to a Second-Tier Sale Agreement, dated as of [____ __], 201[__] (the “Second-Tier Sale Agreement”);

 

WHEREAS,  in connection with the issuance of the 201[__]-[__] Exchange Note, the parties to the Basic Servicing Agreement will enter into a supplement to the Basic Servicing Agreement to forth the specific rights and duties of the Servicer and the other agreements and 

 

 

  

  

  

 

undertakings with respect to the administration and servicing of the 201[__]-[__] Reference Pool; and

 

WHEREAS, the parties hereto wish to enter into this 201[__]-[__] Servicing Supplement to set forth the additional duties required of the Servicer with respect to the 201[__]-[__] Reference Pool and the 201[__]-[__] Exchange Note.

 

NOW, THEREFORE, in consideration of the premises and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows:

 

ARTICLE ONE

 

USAGE AND DEFINITIONS

 

Section 1.01.  Capitalized Terms; Rules of Usage.

 

(a)           Capitalized terms used in this 201[__]-[__] Servicing Supplement that are not otherwise defined shall have the meanings ascribed thereto in Appendix 1 hereto or, if not defined therein, in Appendix A to the Basic Collateral Agency Agreement, which Appendices are hereby incorporated into and made a part of this Agreement.  Appendix 1 also contains rules as to usage applicable to this 201[__]-[__] Servicing Supplement.

 

(b)           Except as otherwise indicated by the context, all references herein to (i) “Leases” shall be to Collateral Leases and (ii) “Vehicles” shall be to Collateral Vehicles.

 

 

 

  

2

  

 

ARTICLE TWO

 

DESIGNATION

 

Section 2.01.  Designation

 

.  The parties designate the Collateral Assets listed on Exhibit A to be known as the “201[__]-[__] Reference Pool” and each Lease and Vehicle included therein to be known as a “201[__]-[__] Lease” and a “201[__]-[__] Vehicle,” respectively.

 

 

 

  

3

  

 

 

ARTICLE THREE

 

THE SERVICER

 

Section 3.01.  Appointment of Servicer.

 

(a)           Each party acknowledges and agrees that MBFS USA, as Servicer under the Basic Servicing Agreement, will also act as Servicer under this 201[__]-[__] Servicing Supplement with respect to the 201[__]-[__] Reference Pool and the 201[__]-[__] Exchange Note and MBFS USA will also act as agent and custodian of the Titling Trust in the management and control of the 201[__]-[__] Leases and 201[__]-[__] Vehicles included in the 201[__]-[__] Reference Pool and for all other purposes set forth in the 201[__]-[__] Servicing Agreement, in each case, for the benefit of each holder and pledgee of the 201[__]-[__] Exchange Note.  MBFS USA hereby accepts such appointments.

 

(b)           The Servicer may delegate its duties and obligations as Servicer in accordance with Section 3.05 of the Basic Servicing Agreement.

 

(c)           The Servicer shall account for the 201[__]-[__] Leases and 201[__]-[__] Vehicles allocated to the 201[__]-[__] Reference Pool separately from any other Reference Pool and the Revolving Facility Pool.   The 201[__]-[__] Leases, the certificates of title relating to the 201[__]-[__] Vehicles, the insurance policies and insurance records and other documents related to the 201[__]-[__] Leases and 201[__]-[__] Vehicles will not be physically segregated from other Leases, certificates of title, insurance policies and insurance records or other documents related to other Leases and Vehicles owned or serviced by the Servicer, including Leases and Vehicles which are not part of the 201[__]-[__] Reference Pool.  The accounting records and computer systems of MBFS USA will reflect the allocation of the 201[__]-[__] Leases and 201[__]-[__] Vehicles to the 201[__]-[__] Reference Pool.  The Servicer may appoint one or more agents to act as subcustodians of certain items relating to the 201[__]-[__] Leases, the Certificates of Title relating to the 201[__]-[__] Vehicles, the insurance policies and insurance records and other documents related to the 201[__]-[__] Leases and 201[__]-[__] Vehicles; provided, however, that the Servicer shall remain solely responsible for their safekeeping.

 

Section 3.02.  Servicer Representations and Warranties.

 

(a)           The Servicer has made the representations and warranties set forth in Section 3.02 of the Basic Servicing Agreement on which the Lender, the Titling Trust and the Collateral Agent have relied, and the 201[__]-[__] Exchange Noteholder, in acquiring the 201[__]-[__] Exchange Note, will rely.  Such representations and warranties are remade as of the 201[__]-[__] Exchange Note Issuance Date and will survive the sale, transfer, assignment and conveyance of the 201[__]-[__] Exchange Note to the 201[__]-[__] Exchange Noteholder, the Transferor and the Issuer and the pledge of the 201[__]-[__] Exchange Note to the Indenture Trustee pursuant to the Indenture.

 

(b)           As of the 201[__]-[__] Exchange Note Issuance Date, the Servicer is not in material default under any agreement, contract, instrument or indenture of any nature whatsoever

 

 

  

4

  

 

to which it is bound, which default would have a material adverse effect on the ability of the Servicer to perform its obligations under this Agreement.

 

(c)           As of the 201[__]-[__] Exchange Note Issuance Date, no consent, approval, authorization or order of any court or governmental agency or body is required under federal or State law for the execution, delivery and performance by the Servicer, or compliance by it with this Agreement or the consummation of the transactions contemplated hereby, or if required has been obtained or can be obtained prior to the execution of this Agreement.

 

Section 3.03.  201[__]-[__] Lease and 201[__]-[__] Vehicle Representations and Warranties.  The Servicer makes the representations and warranties set forth in Exhibit B with respect to the 201[__]-[__] Leases and the 201[__]-[__] Vehicles, on which the 201[__]-[__] Exchange Noteholder, the Transferor and the Issuer are relying in acquiring the 201[__]-[__] Exchange Note.  Such representations and warranties are effective as of the 201[__]-[__] Cutoff Date (unless otherwise specified) and will survive the sale, transfer, assignment and conveyance of the 201[__]-[__] Exchange Note to the 201[__]-[__] Exchange Noteholder, the Transferor and the Issuer and the pledge of the 201[__]-[__] Exchange Note to the Indenture Trustee pursuant to the Indenture.

 

Section 3.04.  Liability of the Servicer; Indemnities.

 

(a)           The Servicer will indemnify, defend and hold harmless the Covered Parties and the Holder of the Daimler Retail Specified Interest Certificate (each, with respect to this subsection, an “Indemnified Person”) in accordance with Section 3.03(b) of the Basic Servicing Agreement, as well as from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of the Servicer’s willful misconduct, negligence or bad faith or resulting from the use, ownership or operation by the Servicer or any of its Affiliates of a 201[__]-[__] Vehicle.

 

(b)           The Servicer will indemnify, defend and hold harmless the Titling Trust, the Collateral Agent, the Securities Intermediary, the Administrative Agent, the Trustees and their respective officers, directors, employees and agents (each, with respect to this subsection, an “Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or incurred in connection with, the acceptance of or performance by the Servicer of the trusts and duties contained in this 201[__]-[__] Servicing Supplement, except to the extent that any such cost, expense, loss, damage, claim or liability (i) is due to the willful misconduct, negligence or bad faith of the Indemnified Person or (ii) in the case of either Trustee, arises from such Trustee’s breach of any of its representations or warranties set forth in the Trust Agreement or the Indenture, as the case may be.

 

(c)           In addition to the Indemnified Parties included in the Basic Servicing Agreement, the Servicer will treat the Issuer and each Trustee as “Indemnified Persons” pursuant to Sections 3.03(d), (e), (f) and (g) of the Basic Servicing Agreement.

 

Section 3.05.  Purchase Upon Breach.

 

(a)           Deposit of Repurchase Payments.

 

 

  

5

  

 

 

(i)      If an Authorized Officer of the Servicer has actual knowledge, or receives notice from the 201[__]-[__] Exchange Noteholder or the Indenture Trustee, of a breach of (A) a representation or warranty set forth in Section 3.03, (B) the agreements set forth in Section 3.06 or (C) the covenants set forth in Sections 4.02(a) or 6.08 of the Basic Servicing Agreement and such breach materially and adversely affects the interest of the Issuer in the related 201[__]-[__] Lease or 201[__]-[__] Vehicle and such breach has not been cured in all material respects on or before the last day of the Collection Period which includes the 30th day after the date on which the Servicer obtained actual knowledge of, or received written notice of, such breach, the Servicer shall deposit into the 201[__]-[__] Exchange Note Collection Account an amount equal to the related Repurchase Payment with respect to such 201[__]-[__] Lease and related 201[__]-[__] Vehicle.

 

(ii)     The Servicer shall deposit into the 201[__]-[__] Exchange Note Collection Account an amount equal to the related Repurchase Payment if the Servicer determines, in its sole discretion, that, as a result of a computer systems error or computer systems limitation or for any other reason, the Servicer is unable to service a 201[__]-[__] Lease and 201[__]-[__] Vehicle in accordance with the terms of the 201[__]-[__] Servicing Agreement.

 

(iii)    So long as MBFS USA remains the Servicer, the Servicer will deposit into the 201[__]-[__] Exchange Note Collection Account an amount equal to the Repurchase Payment with respect to any 201[__]-[__] Lease if the Servicer is notified that the garaging location of the related 201[__]-[__] Vehicle has changed and, as a result of such change, such 201[__]-[__] Vehicle is no longer garaged in an Eligible State and such state does not become an Eligible State within 90 days of the Servicer becoming aware of such change.

 

(iv)   The Servicer will deposit the Repurchase Payment with respect to any 201[__]-[__] Lease and related 201[__]-[__] Vehicle that the Servicer is removing from the 201[__]-[__] Reference Pool in accordance with Section 3.05(a) into the 201[__]-[__] Exchange Note Collection Account on the Deposit Date immediately following the last day of the Collection Period which includes the 30th day after the date on which the Servicer becomes aware of, or receives written notice of, such breach or failure; provided that, for the avoidance of doubt, with respect to 3.05(a)(iii), the Servicer will be deemed to have become aware of or have received written notice of such breach or failure at the end of the 90 day period set forth therein.

 

(b)           Purchase Constitutes Sole Remedy for Breach.  The sole remedy of the Collateral Agent, the 201[__]-[__] Exchange Noteholder, the Indenture Trustee and the Holders of the 201[__]-[__] ABS Notes with respect to (i) a breach of the representations and warranties contained in Section 3.03 or (ii) any of the events described in Section 3.05(a)(i)(B), (a)(ii) or (a)(iii) is to cause the related Repurchase Payment to be paid as provided in Section 3.05(a)(iv).

 

(c)           Reallocation of Purchased 201[__]-[__] Leases and 201[__]-[__] Vehicles.  Upon the deposit of the Repurchase Payment for any 201[__]-[__] Lease and 201[__]-[__] Vehicle pursuant to Section 3.05(a), such 201[__]-[__] Lease and 201[__]-[__] Vehicle will be

 

 

 

  

6

  

 

reallocated to the Revolving Facility Pool at the direction of the Servicer and will no longer be included in the 201[__]-[__] Reference Pool.

 

Section 3.06.  Collection of Payments.  The Servicer may grant extensions, waivers, rebates, modifications or adjustments with respect to any 201[__]-[__] Lease, except that if, after the 201[__]-[__] Cutoff Date, the Servicer grants an extension with respect to any 201[__]-[__] Lease which extends its related Maturity Date to a date later than the Payment Date occurring six months prior to the Final Scheduled Payment Date of the Class[ A-4][B] Notes, the Servicer shall deposit into the 201[__]-[__] Exchange Note Collection Account an amount equal to the related Repurchase Payment and will reallocate such 201[__]-[__] Lease and the related 201[__]-[__] Vehicle to the Revolving Facility Pool in accordance with Section 3.05 except, in either case, to the extent that any such extension is required by Applicable Law.

 

Section 3.07.  Servicer May Own 201[__]-[__] Exchange Note and 201[__]-[__] ABS Notes.  The Servicer, and any Affiliate of the Servicer, may, in its individual or any other capacity, become the owner or pledgee of the 201[__]-[__] Exchange Note and/or the 201[__]-[__] ABS Notes with the same rights as it would have if it were not the Servicer or an Affiliate thereof, except as otherwise provided in the 201[__]-[__] Servicing Agreement, the Collateral Agency Agreement and the Indenture.  Except as otherwise set forth in the 201[__]-[__] Basic Documents, 201[__]-[__] ABS Notes so owned by or pledged to the Servicer or such Affiliate will have an equal and proportionate benefit under the Basic Servicing Agreement and this 201[__]-[__] Servicing Supplement.

 

Section 3.08.  Fees and Expenses.

 

(a)           201[__]-[__] Reference Pool Servicing Fee.  The 201[__]-[__] Reference Pool Servicing Fee will be payable solely from, and the right of the Servicer to receive the 201[__]-[__] Reference Pool Servicing Fee will be limited in recourse to, the 201[__]-[__] Available Funds and other amounts applied to the payment of such fee pursuant to the 201[__]-[__] Exchange Note Supplement or the Indenture.

 

(b)           Investment Earnings.  Notwithstanding the provisions of Section 5.03(b) of the Basic Servicing Agreement, investment earnings on funds on deposit in the 201[__]-[__] Bank Accounts shall constitute 201[__]-[__] Available Collections and, on or before each Payment Date, the Indenture Trustee shall deposit such investment earnings, net of any applicable investment losses and expenses, into the 201[__]-[__] Exchange Note Collection Account.

 

Section 3.09.  Termination

 

.  This 201[__]-[__] Servicing Supplement will be terminated in the event that the Basic Servicing Agreement is terminated in accordance therewith and may also be terminated at the option of the Servicer or the Titling Trust at any time following the payment in full of the 201[__]-[__] Exchange Note; provided, that the rights and obligations of the parties under Section 3.04 will survive any such termination.

 

 

  

7

  

 

 

ARTICLE FOUR

 

ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS

 

Section 4.01.  201[__]-[__] Bank Accounts.

 

(a)           Establishment of 201[__]-[__] Bank Accounts.  On or before the 201[__]-[__] Exchange Note Issuance Date, the Servicer will establish the 201[__]-[__] Bank Accounts as three segregated trust accounts, and maintain each as an Eligible Account at the Indenture Trustee, to be designated as:

 

(i)      “[______________________], as Indenture Trustee, as secured party for Mercedes-Benz Auto Lease Trust 201[__]-[__]” that will be designated as the “201[__]-[__] Exchange Note Collection Account”;

 

(ii)      “[______________________], as Indenture Trustee, as secured party for Mercedes-Benz Auto Lease Trust 201[__]-[__]” that will be designated as the “201[__]-[__] Distribution Account”; and

 

(iii)    “[______________________], as Indenture Trustee, as secured party for Mercedes-Benz Auto Lease Trust 201[__]-[__]” that will be designated as the “201[__]-[__] Reserve Account.”

 

Initially, the 201[__]-[__] Exchange Note Collection Account will be account number _______________, the 201[__]-[__] Distribution Account will be account number _______________ and the 201[__]-[__] Reserve Account will be account number _______________.

 

(b)           Control of the 201[__]-[__] Bank Accounts.  Each of the 201[__]-[__] Bank Accounts will be under the sole dominion and control of the Indenture Trustee, as secured party for the benefit of the 201[__]-[__] Secured Parties, so long as the 201[__]-[__] Bank Accounts remain subject to the Lien of the Indenture.  Following the payment in full of (i) the 201[__]-[__] ABS Notes and the release of the 201[__]-[__] Bank Accounts from the Lien of the Indenture, (A) at the direction of the Servicer, the 201[__]-[__] Distribution Account and the 201[__]-[__] Reserve Account may be closed and (B) the 201[__]-[__] Exchange Note Collection Account will be under the sole dominion and control of the Collateral Agent and (ii) the 201[__]-[__] Exchange Note, the 201[__]-[__] Exchange Note Collection Account will be under the sole dominion and control of the Borrower and may, at the direction of the Borrower, be closed.  The Servicer may, however, make deposits to or request the Indenture Trustee (or, after the Note Balance of the 201[__]-[__] ABS Notes has been reduced to zero and the 201[__]-[__] Bank Accounts have been released from the Lien of the Indenture, the Collateral Agent, and following the payment in full of the 201[__]-[__] Exchange Note, the Borrower) to make deposits to or withdrawals from the 201[__]-[__] Exchange Note Collection Account in accordance with the 201[__]-[__] Exchange Note Supplement, the Indenture, the Collateral Agency Agreement and this 201[__]-[__] Servicing Supplement.  All monies deposited in the 201[__]-[__] Exchange Note Collection Account will be held (i) until the Note Balance of the 201[__]-[__] ABS Notes has been reduced to zero, all Issuer Obligations have been paid in full and the 201[__]-[__] Bank 

 

 

 

  

8

  

 

Accounts have been released from the Lien under the Indenture, by the Indenture Trustee, (ii) until the payment in full of the 201[__]-[__] Exchange Note, by the Collateral Agent and (iii) following the payment in full of the 201[__]-[__] Exchange Note, by or on behalf of the Borrower, and in each case will be applied only upon the terms and conditions of the 201[__]-[__] Basic Documents, as applicable.  The authority of the Servicer to make deposits to the 201[__]-[__] Bank Accounts is revocable at any time (i) by the Indenture Trustee until the Note Balance of the 201[__]-[__] ABS Notes has been reduced to zero and the 201[__]-[__] Bank Accounts have been released from the Lien of the Indenture, (ii) then, by the Collateral Agent until the payment in full of the 201[__]-[__] Exchange Note, and (iii) thereafter by the Borrower.

 

(c)           Agreement with Depository Institution.  The 201[__]-[__] Bank Accounts will only be established at a depository institution or trust company that complies with the requirements set forth in Section 5.02(d) of the Basic Servicing Agreement.

 

Section 4.02.  Remittances.

 

(a)           For so long as the Monthly Remittance Condition (i) is not met, the Servicer shall remit into the 201[__]-[__] Exchange Note Collection Account all 201[__]-[__] Collections within two Business Days after receipt and identification and (ii) is met, the Servicer will remit to the 201[__]-[__] Exchange Note Collection Account an amount equal to all 201[__]-[__] Collections for a Collection Period no later than the related Deposit Date.

 

(b)           Pending deposit into the 201[__]-[__] Exchange Note Collection Account, the Servicer may use such 201[__]-[__] Collections at its own risk and for its own benefit and is not required to segregate 201[__]-[__] Collections from its own funds.

 

 

  

9

  

 

ARTICLE FIVE

 

TERMINATION

 

Section 5.01.  Optional Termination.

 

(a)           On any Payment Date on which the Outstanding Amount is equal to or less than 10% of the Initial Note Balance, after giving effect to all principal payments on such Payment Date, the Servicer will have the option to purchase the 201[__]-[__] Exchange Note in whole but not in part.  To exercise such option, the Servicer will (i) notify the Borrower, the Collateral Agent, the Administrative Agent and the Indenture Trustee of such election not fewer than ten and not more than 30 days prior to the related Payment Date and (ii) deposit in the 201[__]-[__] Exchange Note Collection Account an amount equal to the 201[__]-[__] Exchange Note Purchase Price.  The 201[__]-[__] ABS Notes shall be redeemed in accordance with Section 10.01 of the Indenture.

 

(b)           Upon purchase of the 201[__]-[__] Exchange Note by the Servicer pursuant to this Section and upon redemption of the Notes and the payment of all Issuer Obligations in full, pursuant to Section 4.06 of the Basic Collateral Agency Agreement, the Borrower shall cancel the 201[__]-[__] Exchange Note and the 201[__]-[__] Leases and 201[__]-[__] Vehicles shall be reallocated to the Revolving Facility Pool.

 

 

  

10

  

 

ARTICLE SIX

 

REPORTS AND NOTICES

 

Section 6.01.  Monthly Reports.

 

(a)           On or prior to each Determination Date, the Servicer will deliver to the Lender, the Collateral Agent, the Administrative Agent and the Transferor a Monthly Exchange Note Report for the related Collection Period.

 

(b)           On or prior to each Determination Date, the Servicer will deliver to the Trustees and the Transferor a Monthly Investor Report for the related Collection Period.

 

Section 6.02.  Notices and Certificates Under the Basic Servicing Agreement

 

.  Any notice or certificate received by the Servicer or delivered by the Servicer under the Basic Servicing Agreement relating to the 201[__]-[__] Reference Pool will be forwarded by the Servicer to the Indenture Trustee within five Business Days of delivery or receipt thereof by the Servicer.

 

Section 6.03.  Annual Officer’s Certificate.

 

(a)           The Servicer will deliver to the Rating Agencies, the Transferor and the Trustees on or before the 90th day following the end of each fiscal year, beginning with the fiscal year ending December 31, 201[__], an Officers’ Certificate signed by a Responsible Officer of the Servicer, substantially in the form of Exhibit D hereto, stating that (i) a review of the activities of the Servicer during the preceding 12-month period (or such shorter period in the case of the first such Officer's Certificate) and of the performance of its obligations under this 201[__]-[__] Servicing Supplement has been made under such officer's supervision and (ii) to such officer's knowledge, based on such review, the Servicer has fulfilled all its obligations under this 201[__]-[__] Servicing Supplement throughout such period or, if there has been a default in the fulfillment of any such obligation, specifying each such default known to such officer and the nature and status thereof.

 

(b)           The Servicer will deliver to the Transferor and the Trustees on or before the 90th day following the end of each fiscal year, beginning with the fiscal year ending December 31, 201[__], a report regarding the Servicer’s assessment of compliance with the Servicing Criteria during the immediately preceding calendar year (or such shorter period in the case of the first such report) including disclosure of any material instance of non-compliance identified by the Servicer, in the form specified by paragraph (b) of Rule 13a-18, Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB, which report shall address each of the Servicing Criteria specified on a certification substantially in the form of Exhibit E hereto delivered to the Issuer and the Administrator concurrently with the execution of this Agreement.

 

(c)           Deliveries pursuant to this Section may be delivered by e-mail. A copy of the documents delivered pursuant to this Section may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

 

  

11

  

 

 

Section 6.04.  Annual Independent Public Accountants’ Attestation.

 

(a)           On or before the 90th day following the end of each fiscal year, beginning with the fiscal year ending December 31, 201[__], the Servicer shall cause a firm of independent public accountants (who may also render other services to the Servicer, the Transferor or their respective Affiliates) to furnish to the Transferor and the Trustees each attestation report on assessments of compliance with the Servicing Criteria with respect to the Servicer during the related fiscal year (or such shorter period in the case of the first such attestation report) delivered by such accountants in the form specified by paragraph (c) of Rule 13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB.  The certification required by this paragraph may be replaced by any similar certification using other procedures or attestation standards which are now or in the future in use by servicers of comparable assets or which otherwise comply with any rule, regulation, “no action” letter or similar guidance promulgated by the Commission.

 

(b)           Deliveries pursuant to this Section may be delivered by e-mail.  A copy of the documents delivered pursuant to this Section may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

Section 6.05.  Statements to Securityholders

 

.  Within the prescribed period of time for tax reporting purposes after the end of each calendar year during the term of the Issuer, but not later than the latest date permitted by law, the Servicer shall cause each Trustee to mail to each Person who at any time during such calendar year shall have been a Securityholder, a statement, prepared by the Servicer, containing certain information for such calendar year or, in the event such Person shall have been a Securityholder during a portion of such calendar year, for the applicable portion of such year, for the purposes of such Securityholder’s preparation of federal income tax returns.  In addition, the Servicer shall furnish to the Trustees for distribution to such Person at such time such other information necessary under Applicable Law for the preparation of such income tax returns.

 

 

 

 

  

12

  

 

 

ARTICLE SEVEN

 

SERVICER EVENTS OF DEFAULT

 

Section 7.01.  Servicer Events of Default.

 

(a)           Notwithstanding Section 8.03 of the Basic Servicing Agreement, only the occurrence and continuation of any of the following events will be an “Exchange Note Servicer Event of Default” with respect to the 201[__]-[__] Exchange Note, and the “Exchange Note Servicer Events of Default” set forth in Section 8.03(a) of the Basic Servicing Agreement shall not apply to the 201[__]-[__] Exchange Note or to this 201[__]-[__] Servicing Supplement:

 

(i)      any failure by the Servicer to deliver to the Indenture Trustee any proceeds or payment required to be so delivered with respect to the 201[__]-[__] Exchange Note under the Basic Servicing Agreement or this 201[__]-[__] Servicing Supplement that continues unremedied for ten Business Days after the earlier of the date on which (A) notice of such failure is given to the Servicer by the Indenture Trustee or (B) an Authorized Officer of the Servicer has actual knowledge of such failure;

 

(ii)      any failure by the Servicer to duly observe or perform in any material respect any other of its covenants or agreements in the 201[__]-[__] Servicing Agreement, which failure materially and adversely affects the rights of holders of interests in the 201[__]-[__] Exchange Note, the Noteholders or, in the event that Certificates are sold to unaffiliated third parties, the Certificateholders, and which continues unremedied for 90 days after written notice thereof is given to the Servicer by the Indenture Trustee;

 

(iii)     any representation, warranty or statement of the Servicer made in the 201[__]-[__] Servicing Agreement or any certificate, report or other writing delivered pursuant to the 201[__]-[__] Servicing Agreement shall prove to be incorrect in any material respect when made, which failure materially and adversely affects the rights of holders of interests in the 201[__]-[__] Exchange Note, the Noteholders or, in the event that Certificates are sold to unaffiliated third parties, the Certificateholders, and which failure continues unremedied for 90 days after written notice thereof is given to the Servicer by the Indenture Trustee; or

 

(iv)     the occurrence of certain Insolvency Events with respect to the Servicer;

 

provided, however, that the occurrence of any event set forth in clauses (i) through (iii) with respect to the 201[__]-[__] Reference Pool will be an Exchange Note Servicer Event of Default only with respect to the 201[__]-[__] Reference Pool and will not be a Servicer Event Default with respect to any other Reference Pool or the Revolving Facility Pool.

 

Notwithstanding the foregoing, a delay in or failure of performance referred to under clause (i), (ii) or (iii) for a period of 120 days will not constitute an Exchange Note Servicer Event of Default if that failure or delay was caused by Force Majeure.  Upon the occurrence of any such event, the Servicer will not be relieved from using all commercially reasonable efforts

 

 

 

  

13

  

 

to perform its obligations in a timely manner in accordance with the terms of the Basic Servicing Agreement and this 201[__]-[__] Servicing Supplement.

 

(b)           With respect to actions taken under Section 8.03(c) of the Servicing Agreement after the occurrence of an Exchange Note Servicer Event of Default, any actions to be taken by the 201[__]-[__] Exchange Noteholder thereunder shall be exercised by the Indenture Trustee, acting at the direction of 66 2/3% of the Holders of the Outstanding Amount of the Controlling Class.

 

(c)           In accordance with Section 8.05 of the Servicing Agreement, after the occurrence of an Exchange Note Servicer Event of Default, the 201[__]-[__] Exchange Noteholder (which for purposes of this Section shall be the Indenture Trustee, acting at the direction of 66 2/3% of the Holders of the Outstanding Amount of the Controlling Class) may waive any such Servicer Event of Default and its consequences.  Upon any such waiver, the applicable Exchange Note Servicer Event of Default will cease to exist, and will be deemed to have been remedied for every purpose of this Agreement.  No such waiver will extend to any subsequent or other event or impair any right consequent thereon.

 

(d)           On or after the receipt by the Servicer of notice of an Exchange Note Servicer Event of Default, all authority and power of the Servicer under this 201[__]-[__] Servicing Supplement, whether with respect to the Notes, the Certificates, the Trust Estate or otherwise, shall, without further action, pass to and be vested in the Indenture Trustee or such Successor Servicer as may be appointed pursuant to the terms of the Basic Servicing Agreement.  The outgoing Servicer shall cooperate with the Indenture Trustee, the Owner Trustee and such Successor Servicer in effecting the termination of the responsibilities and rights of the outgoing Servicer under this 201[__]-[__] Servicing Supplement, including the transfer to the Indenture Trustee or such Successor Servicer for administration by it of all cash amounts that shall at the time be held by the outgoing Servicer for deposit, or have been deposited by the outgoing Servicer, in the 201[__]-[__] Bank Accounts or thereafter received with respect to the 201[__]-[__] Leases and 201[__]-[__] Vehicles and all information or documents that the Indenture Trustee or such Successor Servicer may require.  In addition, the Servicer shall transfer its electronic records relating to the 201[__]-[__] Leases and 201[__]-[__] Vehicles to the Successor Servicer in such electronic form as the Successor Servicer may reasonably request.  All Transition Costs shall be paid by the outgoing Servicer (or by the initial Servicer if the outgoing Servicer is the Indenture Trustee acting on an interim basis) upon presentation of reasonable documentation of such costs and expenses.

 

(e)           Notwithstanding Section 7.01(d), if the Indenture Trustee shall be unwilling so to act or if it is legally unable so to act, a Successor Servicer shall be appointed in accordance with Section 8.04 of the Basic Servicing Agreement.  Compensation for any Successor Servicer shall not be greater than that payable to MBFS USA as initial Servicer hereunder without the prior consent of the Majority Noteholders of the Controlling Class (or Holders of Certificates representing not less than 51% of the aggregate Certificate Percentage Interests then outstanding if the Notes are no longer Outstanding).  The Indenture Trustee and such successor shall take such action, consistent with this 201[__]-[__] Servicing Supplement, as shall be necessary to effectuate any such succession.  The Indenture Trustee shall not be relieved of its duties as Successor Servicer under this Section until a newly appointed Servicer shall have assumed the

 

 

  

14

  

 

obligations and duties of the terminated Servicer under this 201[__]-[__] Servicing  Supplement.  Notwithstanding anything to the contrary contained herein, in no event shall the Indenture Trustee be liable for any servicing fee or for any differential in the amount of the servicing fee paid hereunder and the amount necessary to induce any Successor Servicer to act as Successor Servicer hereunder.

 

 

  

15

  

 

 

ARTICLE EIGHT

 

MISCELLANEOUS

 

Section 8.01.  Amendments.

 

(a)           This 201[__]-[__] Servicing Supplement and the Basic Servicing Agreement, as supplemented by this 201[__]-[__] Servicing Supplement, may be amended in accordance with Section 10.01 of the Basic Servicing Agreement without the consent of any Securityholder, to cure any ambiguity, to correct or supplement any provision herein which may be inconsistent with any other provision herein or to add, change or eliminate any other provision with respect to matters or questions arising under this 201[__]-[__] Servicing Supplement that are not inconsistent with the provisions of this 201[__]-[__] Servicing Supplement; provided, that (i) the Servicer shall have delivered to the Indenture Trustee an Opinion of Counsel to the effect that such action will not materially adversely affect the interests of any Noteholders or (ii) the Rating Agency Condition shall have been satisfied with respect to such amendment.

 

(b)           Each amendment, supplement or other modification of this 201[__]-[__] Servicing Supplement other than those provided for in Section 7.01(a) requires the consent of the Majority Noteholders of the Controlling Class (or if the Notes are no longer Outstanding, Holders of Certificates evidencing not less than a majority of the aggregate Certificate Percentage Interests); provided, however, that no such amendment may (i) increase or reduce in any manner the amount of, or accelerate or delay the timing of, or change the allocation or priority of, collections of payments on or in respect of the 201[__]-[__] Leases and 201[__]-[__] Vehicles or distributions that are required to be made for the benefit of the Securityholders, change the Interest Rate applicable to any class of Notes or the Required Reserve Amount for the 201[__]-[__] Reserve Account, without the consent of all holders of Notes then Outstanding or (ii) reduce the percentage of the Note Balance of the Notes or of the Controlling Class the consent of the Holders of which is required for any amendment to this 201[__]-[__] Servicing Supplement without the consent of all Holders of Notes or of the Controlling Class then Outstanding.

 

(c)           It shall not be necessary for the consent of any Person pursuant to this Section for such Person to approve the particular form of any proposed amendment, but it shall be sufficient if such Person consents to the substance thereof.

 

(d)           Promptly upon the execution of any such amendment, (i) the Servicer will send a copy of such amendment to the Indenture Trustee and the Rating Agencies and (ii) the Indenture Trustee will deliver to each Holder of a 201[__]-[__] ABS Note a copy of such amendment.

 

Section 8.02.  Successors and Assigns.  All covenants and agreements in the Basic Servicing Agreement, as supplemented by this 201[__]-[__] Servicing Supplement, shall be binding upon, and inure to the benefit of, the parties hereto and their successors and assigns.  Any request, notice, direction, consent, waiver or other instrument or action by the parties hereto shall bind their respective successors and assigns.

 

 

  

16

  

 

 

Section 8.03.  Third-Party Beneficiaries.  The Issuer and the Indenture Trustee, as holder and pledgee, respectively, of the 201[__]-[__] Exchange Note, and their respective successors, permitted assigns and pledges are third-party beneficiaries of the obligations of the parties hereto and may directly enforce the performance of any such obligations hereunder.

 

Section 8.04.  No Petition.  Each of the Servicer and the Collateral Agent covenants and agrees that for a period of one year and one day (or, if longer, any applicable preference period) after payment in full of all Exchange Notes and all outstanding Securities, it will not institute against, or join any Person in instituting against, the Titling Trust, the Initial Beneficiary or the Transferor any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings, or other Proceedings under any Insolvency Law in connection with any obligations relating to the 201[__]-[__] ABS Notes, the 201[__]-[__] Exchange Note or the 201[__]-[__] Basic Documents and agrees that it will not cooperate with or encourage others to institute any such Proceeding.

 

Section 8.05.  GOVERNING LAW; SUBMISSION TO JURISDICTION.

 

(a)           THIS 201[__]-[__] SERVICING SUPPLEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT REGARD TO ANY OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW), AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

(b)           Each party to this 201[__]-[__] Servicing Supplement submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for purposes of all Proceedings arising out of or relating to this 201[__]-[__] Servicing Supplement or the transactions contemplated by the 201[__]-[__] Basic Documents.  Each party to this 201[__]-[__] Servicing Supplement irrevocably waives, to the fullest extent it may do so, any objection that it may now or hereafter have to the laying of the venue of any such Proceeding brought in such a court and any claim that any such Proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 8.06.  WAIVER OF JURY TRIAL.  EACH PARTY TO THIS 201[__]-[__] SERVICING SUPPLEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO ANY 201[__]-[__] BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED BY ANY 201[__]-[__] BASIC DOCUMENT.

 

Section 8.07.  Severability

 

.  If any one or more of the covenants, agreements, provisions or terms of this 201[__]-[__] Servicing Supplement or the 201[__]-[__] Servicing Agreement is held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms will be deemed severable from the remaining covenants, agreements, provisions and terms of this 201[__]-[__] Servicing Supplement or the 201[__]-[__] Servicing Agreement, as applicable, and will in no way affect the validity, legality or enforceability of the other covenants, agreements, 

 

 

 

  

17

  

 

 

provisions and terms of this 201[__]-[__] Servicing Supplement or the 201[__]-[__] Servicing Agreement.

 

Section 8.08.  Counterparts.  This 201[__]-[__] Servicing Supplement may be executed in any number of counterparts, each of which will be an original, and all of which will together constitute one and the same instrument.

 

Section 8.09.  Table of Contents and Headings.  The Table of Contents and the various headings in this 201[__]-[__] Servicing Supplement are included for convenience only and will not affect the meaning or interpretation of any provision of this 201[__]-[__] Servicing Supplement.

 

Section 8.10.  Conflict with Basic Servicing Agreement.  In the event of any conflict between this 201[__]-[__] Servicing Supplement and the Basic Servicing Agreement, the terms of this 201[__]-[__] Servicing Supplement will prevail.

 

Section 8.11.  No Recourse.  It is expressly understood and agreed by the parties that (i) this document is executed and delivered by BNYM, not individually or personally, but solely as Titling Trustee, in the exercise of the powers and authority conferred and vested in it, (ii) each of the representations, undertakings and agreements herein made on the part of the Titling Trust is made and intended not as personal representations, undertakings and agreements by BNYM but is made and intended for the purpose for binding only the Titling Trust, (iii) nothing herein contained shall be construed as creating any liability on BNYM, individually or personally, to perform any covenant either expressed or implied contained herein, all such liability, if any, being expressly waived by the parties hereto and by any person claiming by, through or under the parties hereto and (iv) under no circumstances shall BNYM be personally liable for the payment of any indebtedness or expenses of the Titling Trust or be liable for the breach or failure of any obligation, representation, warranty or covenant made or undertaken by the Titling Trust under this document or any other related documents.

 

Section 8.12.  Each Exchange Note Separate; Assignees of Exchange Note.  Each party hereto acknowledges and agrees (and each holder or pledgee of the 201[__]-[__] Exchange Note, by virtue of its acceptance of such 201[__]-[__] Exchange Note or pledge thereof acknowledges and agrees) that (i) the Specified Interest is a separate series of the Titling Trust as provided in Section 3806(b)(2) of Chapter 38 of Title 12 of the Delaware Code, 12 Del. Code Section 3801 et seq., (ii) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect to (a) the 201[__]-[__] Exchange Note or the related 201[__]-[__] Reference Pool shall be enforceable against such 201[__]-[__] Reference Pool only and not against any other Reference Pool or the Revolving Facility Pool and (b) any other Exchange Note, any other Reference Pool or the Revolving Facility Pool shall be enforceable against such other Exchange Note, other Reference Pools, or the Revolving Facility Pool only, as applicable, and not against the 201[__]-[__] Exchange Note or any 201[__]-[__] Lease or 201[__]-[__] Vehicle included in the 201[__]-[__] Reference Pool, (iii) except to the extent required by law, the leases and the related leased vehicles included in the Revolving Facility Pool or leases and the related leased vehicles included in any other Reference Pool with respect to any other Exchange Note (other than the 201[__]-[__] Exchange Note transferred hereunder which is related to the 201[__]-[__] Reference Pool) shall not be subject to the claims, debts, liabilities,

 

 

 

  

18

  

 

expenses or obligations arising from or with respect to the 201[__]-[__] Exchange Note in respect of such claim, (iv) no creditor or holder of a claim relating to (a) the 201[__]-[__] Exchange Note or the related 201[__]-[__] Reference Pool shall be entitled to maintain any action against or recover any assets allocated to any other Reference Pool, the Revolving Facility Pool or any other Exchange Note or the assets allocated thereto (except to the extent of amounts available to such Persons on a fully subordinated basis), and (b) any other Reference Pool, the Revolving Facility Pool or any other Exchange Note other than the 201[__]-[__] Exchange Note related to the 201[__]-[__] Reference Pool shall be entitled to maintain any action against or recover any assets allocated to the 201[__]-[__] Reference Pool and (v) any purchaser, assignee or pledgee of an interest in the 201[__]-[__] Reference Pool or, the 201[__]-[__] Exchange Note, must, prior to or contemporaneously with the grant of any such assignment, pledge or security interest, (a) give to the Titling Trust a non-petition covenant substantially similar to that set forth in Section 11.10 of the Titling Trust Agreement and (b) execute an agreement for the benefit of each holder, assignee or pledgee from time to time of any other Exchange Note to release all claims to the assets of the Titling Trust allocated to the Revolving Facility Pool and each other Reference Pool and, in the event that such release is not given effect, to fully subordinate all claims it may be deemed to have against the assets of the Titling Trust allocated to the Revolving Facility Pool and each other Reference Pool.

 

 

  

19

  

 

 

IN WITNESS WHEREOF, the parties hereto have caused this 201[__]-[__] Servicing Supplement to be duly executed by their respective officers duly authorized as of the day and year first above written.

 

 

	 	
MERCEDES BENZ FINANCIAL SERVICES

USA LLC, as Servicer

	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

	 	
MERCEDES BENZ FINANCIAL SERVICES

USA LLC, as Lender

	 
	 	 	 	 
	 	 	 	 
	 	By:	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

 

 

 

  

  

  

 

 

 

 

	 	
DAIMLER TRUST, 

asTitling Trust

	 
	 	 	 	 
	 	 	 	 
	 	By:	
BNY MELLON TRUST OF DELAWARE (f/k/a BNYM (Delaware)) (f/k/a The Bank of New York (Delaware)), not in its individual capacity but solely as Titling Trustee,

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

 

 

	 	
DAIMLER TITLE CO., 

as Collateral Agent

	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title:	 
	 	 	 	 

 

 

 

  

  

  

 

 

EXHIBIT A

 

201[__]-[__] REFERENCE POOL ASSET SCHEDULE

 

(On file with the Collateral Agent)

 

 

 

  

A-1

  

 

 

 

EXHIBIT B

 

201[__]-[__] LEASE AND 201[__]-[__] VEHICLE REPRESENTATIONS AND WARRANTIES

 

(i)           Origination.  The 201[__]-[__] Lease is a Stand-Alone Lease that was originated (a) by a Dealer in the ordinary course of such Dealer’s business, (b) on or after August 1, 2009, (c) pursuant to an agreement which allows for recourse to the Dealer in the event of certain defects in the 201[__]-[__] Lease (but not for a default by the related Lessee) and (d) in substantial compliance with the Credit and Collection Policy.

 

(ii)          Leases.  The 201[__]-[__] Lease constitutes “tangible chattel paper” within the meaning of Section 9-102 of the UCC.

 

(iii)         Leased Vehicle.  The related 201[__]-[__] Vehicle is a new Mercedes-Benz passenger car, sport utility vehicle or crossover or a smart automobile.

 

(iv)        Certificate of Title and Lienholder.  The 201[__]-[__] Vehicle was titled in a State in accordance with the Titling Trust Agreement and in a manner acceptable to the related Registrar of Titles, and the Collateral Agent is noted as lienholder of the 201[__]-[__] Vehicle (other than in Kansas or Missouri) and such lien is a perfected first priority security interest.

 

(v)         Lessee.  The related Lessee is a Person other than MBFS USA, any Affiliate thereof or a Governmental Authority and, at the time of origination of the 201[__]-[__] Lease, based on information provided by the Lessee, the Lessee is located in and has a billing address within a State.

 

(vi)        Closed-End Lease; Payment in Dollars.  The 201[__]-[__] Lease is payable solely in Dollars in the United States and is a closed-end lease that provides for equal monthly payments by the Lessee, which scheduled payments, if made when due, fully amortize to an amount equal to the Booked Residual Value of the related 201[__]-[__] Vehicle based upon the related Contract Rate.

 

(vii)       One Original.  There is only one original executed copy of the 201[__]-[__] Lease.  The Servicer, or its custodian, has possession of such original, which does not have any marks or notations indicating that it has been pledged, assigned or otherwise conveyed to any Person other than the Titling Trust.

 

(viii)      Compliance with Law.  The 201[__]-[__] Lease complied in all material respects at the time it was originated and, as of the date of the 201[__]-[__] Servicing Supplement, will comply in all material respects with all requirements of federal, State and local laws.

 

(ix)         Consents, Licenses and Approvals.  All material consents, licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority required to be obtained, effected or given by Titling Trust in connection with (a) the execution, delivery and performance by the Titling Trust of such 201[__]-[__] Lease and (b) the acquisition by the

 

 

 

  

B-1

  

 

Titling Trust of such 201[__]-[__] Lease and the related 201[__]-[__] Vehicle, were duly obtained, effected or given and were in full force and effect as of such date of creation or acquisition and remained in full force and effect as of the date of the 201[__]-[__] Servicing Supplement.

 

(x)          Enforceability.  The 201[__]-[__] Lease was fully and properly executed by the parties thereto and such 201[__]-[__] Lease represents the legal, valid and binding full-recourse payment obligation of the related Lessee, enforceable against such Lessee in accordance with its terms, except as enforceability is subject to or limited by bankruptcy, reorganization, insolvency, fraudulent conveyance, moratorium and other similar laws affecting the enforcement of creditors’ rights in general or principles of equity (whether considered in a suit at law or in equity).

 

(xi)         Title to the Lease and Leased Vehicle.  Neither the 201[__]-[__] Lease nor the 201[__]-[__] Vehicle has been sold, transferred, assigned, pledged or granted by any Dealer to any Person other than the Titling Trust.  The Titling Trust has good and marketable title to, and a first-priority perfected security interest in, such 201[__]-[__] Lease and 201[__]-[__] Vehicle, free and clear of any Liens (other than Permitted Liens), participations and rights of others, including, to the knowledge of the Servicer, Liens (other than Permitted Liens) or claims for work, labor or material relating to such 201[__]-[__] Vehicle.

 

(xii)        Lease in Full Force and Effect; No Waiver.  The 201[__]-[__] Lease is in full force and effect and not satisfied, subordinated or rescinded and no provision of the 201[__]-[__] Lease has been waived in any manner that causes or could cause such 201[__]-[__] Lease to not qualify with the other criteria set forth herein.

 

(xiii)       No Defenses.  The 201[__]-[__] Lease is not subject to any right of rescission, cancellation, setoff, claim, counterclaim or any other defense (including defenses arising out of violations of usury laws) of the related Lessee to payment of the amounts due thereunder, and no such right of rescission, cancellation, set-off, claim, counterclaim or any other defense (including defenses arising out of violations of usury laws) has been asserted or threatened.

 

(xiv)       Assignability.  The 201[__]-[__] Lease is fully assignable and does not require the consent of the related Lessee or any other Person as a condition to any transfer, sale or assignment of the rights thereunder to the Titling Trust.

 

(xv)        Lease Term.  As of its origination date, the 201[__]-[__] Lease had an original Lease Term of no less than [24] months and no more than [60] months.

 

(xvi)       Insurance.  As of the time of origination of the 201[__]-[__] Lease, the related lease agreement required the related Lessee to obtain physical damage insurance covering the related 201[__]-[__] Vehicle.

 

(xvii)      No Bankruptcy.  As of the 201[__]-[__] Cutoff Date, the Servicer has not received actual notice that the Lessee on any 201[__]-[__] Lease is a debtor in a bankruptcy proceeding.

 

 

 

  

B-2

  

 

 

(xviii)     No Extensions.  The 201[__]-[__] Lease has not been extended or otherwise been deferred, but may have been modified in accordance with the Credit and Collection Policy so long as such modification did not cause such 201[__]-[__] Lease to not qualify with the other criteria set forth herein.

 

(xix)       Delinquencies; No Payment Default.  The 201[__]-[__] Lease is not delinquent by more than 30 days.  As of the Cutoff Date, none of the 201[__]-[__] Leases is a Defaulted Lease.

 

(xx)        Securitization Value.  As of the 201[__]-[__] Cutoff Date, each 201[__]-[__] Lease had a Securitization Value not less than $________ and no more than $__________.

 

(xxi)       FICO Score.  As of its origination date, the Lessee under the 201[__]-[__] Lease had a FICO score of not less than ___.

 

(xxii)      No Adverse Selection.  No selection procedures believed to be adverse to the 201[__]-[__] Exchange Noteholder have been utilized in selecting the 201[__]-[__] Leases and 201[__]-[__] Vehicles included in the 201[__]-[__] Reference Pool from other Leases and Vehicles that meet the criteria specified in this Exhibit.

 

(xxiii)     No Allocation to Other Specified Interest.  The 201[__]-[__] Lease and the related 201[__]-[__] Vehicle allocated to the 201[__]-[__] Reference Pool has not been allocated to any Reference Pool other than the 201[__]-[__] Reference Pool.

 

(xxiv)     Model Year.  The related 201[__]-[__] Vehicle has a model year between 20[__] and 201[__].

 

(xxv)      Satisfaction of Obligations. The related Dealer, originator and the Titling Trust have each satisfied all of the obligations required to be fulfilled on its part with respect to the 201[__]-[__] Lease.

 

 

 

  

B-3

  

 

 

 

EXHIBIT C

 

MONTHLY INVESTOR REPORT

 

	
Mercedes-Benz Auto Lease Trust 201[__]-[__]

	  	  	  	  	  	  	  	  	  	  	  
	
Investor Report

	  	  	  	  	  	  	  	  	  	  	  
	
Collection Period Ended

	  	  	  	  	
DD-Mon-YYYY

	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	
 `

	  	  	  	  	  	  	  	  	  	  	  	
Amounts in USD

	
Dates

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Collection Period No.

	
#

	  	  	  	  	  	  	  	  	  	  	  	  
	
Collection Period (from... to)

	
DD-Mon-YYYY

	
DD-Mon-YYYY

	  	  	  	  	  	  	  	  	  
	
Determination Date

	
DD-Mon-YYYY

	  	  	  	  	  	  	  	  	  	  	  	  
	
Record Date

	
DD-Mon-YYYY

	  	  	  	  	  	  	  	  	  	  	  	  
	
Payment Date

	
DD-Mon-YYYY

	  	  	  	  	  	  	  	  	  	  	  	  
	
Interest Period of the Class A-1 Notes (from... to)

	
DD-Mon-YYYY

	
DD-Mon-YYYY

	
Actual/360 Days

	
#

	  	  	  	  	  
	
Interest Period of the Class A-2, A-3 and A-4 Notes (from... to)

	
DD-Mon-YYYY

	
DD-Mon-YYYY

	
30/360 Days

	
#

	  	  	  	  	  

 

	
Summary

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	
Initial

	
Beginning

	
Ending

	
Principal

	
Principal per $1000

	
Note

	  	
Balance

	
Balance

	
Balance

	
Payment

	
Face Amount

	
 Factor

	
Class A-1 Notes

	  	  	  	  	  	  
	
Class A-2 Notes

	  	  	  	  	  	  
	
Class A-3 Notes

	  	  	  	  	  	  
	
Class A-4 Notes

	  	  	  	  	  	  
	
Total Note Balance

	
$

	
$

	
$

	
$

	  	  	  
	
Overcollateralization

	  	  	  	  	  	  	  	  
	
Total Securitization Value

	  	  	
$

	
$

	
$

	  	  	  	  	  
	
present value of lease payments

	  	  	  	  	  	  	
$

	  	  	  	
$

	  	  	
$

	  	  	  	  	  
	
present value of Base Residual Value

	  	  	  	  	  	  	
$

	  	  	  	
$

	  	  	
$

	  	  	  	  	  

 

 

 

 

  

C-1

  

 

 

 

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	
Amount

	
Percentage

	  	  	  	  	  	  	  	  
	
Initial Overcollateralization Amount

	
$

	
%

	  	  	  	  	  	  	  	  
	
Target Overcollateralization Amount

	
$

	
%

	  	  	  	  	  	  	  	  
	
Current Overcollateralization Amount

	
$

	
%

	  	  	  	  	  	  	  	  

 

	  	
Interest Rate

	
Interest Payment

	
Interest per $1000 Face Amount

	
Interest & Principal Payment

	
Interest & Principal Payment per $1000 Face Amount

	  	  
	
Class A-1 Notes

	
%

	  	
$

	  	
$

	  	  
	
Class A-2 Notes

	
%

	  	
$

	  	
$

	  	  
	
Class A-3 Notes

	
%

	  	
$

	  	
$

	  	  
	
Class A-4 Notes

	
%

	  	
$

	  	
$

	  	  
	
Total

	  	
$

	  	
$

	  	  	  

 

	
Available Funds

	  	  	  	  	  	  	  	  	  	  
	
Lease Payments Received

	  	  	
$

	  	  	  
	
Net Sales Proceeds-early terminations (incl. Defaulted Leases)

	
$

	  	  	  
	
Net Sales Proceeds-scheduled terminations

	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Thereof excess wear and tear received

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Thereof excess mileage charges received

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Subtotal

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Repurchase Payments

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Advances made by the Servicer

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Investment Earnings

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Total Available Collections

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Reserve Account Draw Amount

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Total Available Funds

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Distributions

	  	  	  	  	  	  	  	  
	
(1) Total Servicing Fee and

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
     Nonrecoverable Advances to Servicer

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(2) Total Trustee Fees

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(3) Interest Distributable Amount Class A Notes

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(4) Priority Principal Distribution Amount

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(5) To Reserve Fund to reach the Reserve Fund Required Amount

	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(6) Regular Principal Distribution Amount

	  	
$

	  	  	  	  	  	  	  	  	  	  	  

 

 

 

  

C-2

  

 

 

	
(7) Additional Servicing Fee and Transition Costs

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(8) Total Trustee Fees [not previously paid under (2)]

	
$

	  	  	  	  	  	  	  	  	  	  	  
	
(9) Excess Collections to Certificateholders

	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	
Total Distribution

	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Distribution Detail

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	
Amount

Due

	
Amount

Paid

	
 

 Shortfall

	  	  
	
Total Servicing Fee

	
$

	
$

	
$

	  	  
	
Total Trustee Fee

	
$

	
$

	
$

	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Monthly Interest Distributable Amount

	
$

	
$

	
$

	  	  
	
    thereof on Class A-1 Notes

	  	  	  	  	  
	
    thereof on Class A-2 Notes

	  	  	  	  	  
	
    thereof on Class A-3 Notes

	  	  	  	  	  
	
    thereof on Class A-4 Notes

	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Interest Carryover Shortfall Amount

	
$

	
$

	
$

	  	  
	
    thereof on Class A-1  Notes

	  	  	  	  	  
	
    thereof on Class A-2  Notes

	  	  	  	  	  
	
    thereof on Class A-3  Notes

	  	  	  	  	  
	
    thereof on Class A-4  Notes

	  	  	  	  	  
	
Interest Distributable Amount Class A Notes

	
$

	
$

	
$

	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Priority Principal Distribution Amount

	
$

	
$

	
$

	  	  
	
Regular Principal Distribution Amount

	
$

	
$

	
$

	  	  
	
Principal Distribution Amount

	
$

	
$

	
$

	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Reserve Fund and Investment Earnings

	  	  	  	  	  	  	  	  
	
Reserve Fund

	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Reserve Fund Required Amount

	
$

	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Reserve Fund Amount - Beginning Balance

	  	  	
$

	  	  	  	  	  	  
	
  plus top up Reserve Fund up to the Required Amount

	
$

	  	  	  	  	  	  
	
  plus Net Investment Earnings for the Collection Period

	
$

	  	  	  	  	  	  
	
  minus Net Investment Earnings

	
$

	  	  	  	  	  	  
	
  minus Reserve Fund Draw Amount

	
$

	  	  	  	  	  	  

 

 

 

  

C-3

  

 

 

	 	 	 	 	 	 	 	 
	
Reserve Fund Amount - Ending Balance

	
$

	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Reserve Fund Deficiency

	
$

	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Investment Earnings

	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Net Investment Earnings on the Reserve Fund

	
$

	  	  	  	  	  	  
	
Net Investment Earnings on the Exchange Note Collection Account

	
$

	  	  	  	  	  	  
	
Investment Earnings for the Collection Period

	
$

	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Notice to Investors

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Pool Statistics

	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Pool Data

	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	
Amount

	
Number of Receivables

	  	  
	
Cutoff Date Securitization Value

	
$

	
$

	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Securitization Value beginning of Collection Period

	  	  	
$

	  	  	
# 

	  	  
	
Principal portion of lease payments

	
$

	  	  	  	  
	
Terminations- Early

	
$

	  	  	  	  	  
	
Terminations- Scheduled

	  	  	  	  	  	  	  	  	  	  
	
Repurchase Payments (excluding interest)

	
$

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Gross Losses

	
$

	  	  	  	  	  
	
Securitization Value end of Collection Period

	
$

	
#

	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Pool Factor

	
%

	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  

 

	  	  	  	  	  	
As of Cutoff Date

	
 

	  Current	  

 

	
Weighted Average Securitization Rate

	
%

	
%

	  	  	  
	
Weighted Average Remaining Term (months)

	
#

	
#

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Weighted Average Seasoning (months)

	
#

	
#

	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Aggregate Base Residual Value

	  	  	  	  	  	  	  	  	
$

	  	  	  	
$

	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Cumulative Turn-in Ratio

	  	  	  	  	  	  	  	  	  	  	  	  	
%

	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Delinquency Profile *

	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	
Amount**

	
Number of Leases

	
 Percentage

	  	  
	
Current

	  	  	  	  	  
	
31-60 Days Delinquent

	  	  	  	  	  

 

 

 

  

C-4

  

 

 

	
61-90 Days Delinquent

	  	  	  	  	  
	
91-120 Days Delinquent

	  	  	  	  	  
	
Total

	
$

	
#

	
 100.00%

	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
*A lease is not considered delinquent if the amount past due is less than 10% of the payment due under such lease

**Based on the actual Securitization Value of the respective leases

	  	  
	  	  	  	  	  	  	  	  	  	
  

 

Current

	  	  	  	  
	
Credit Loss

	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Securitization Value of Defaulted Leases BOP

	  	  	  	  	  	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  
	
Less Liquidation Proceeds

	  	  	  	  	  	  	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  
	
Less Recoveries

	  	  	  	  	  	  	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  
	
Current Net Credit Loss / (Gain)

	  	  	  	  	  	  	  	  	  	
$

	  	  	  	  
	
Cumulative Net Credit Loss / (Gain)

	  	  	  	  	  	  	  	  	  	
$

	  	  	  	  
	
Cumulative Net Credit Loss / (Gain) as % of Cutoff Date Securitization Value

	  	  	  	  	  	  	
$

	  	  	  	  
	  	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	
Residual Loss

	  	  	  	  	  	  	  	  	  	  	  	  	  	  
	  	  	  	  	  	  	  	  	  	
Current

	  	  	  	  
	
Securitization Value of Liquidated Leases BOP

	  	  	  	  	  	  	
$

	  	  	  	  
	
Less sales proceeds and other payments received during Collection Period

	  	  	  	  	  	  	
$

	  	  	  	  	  	  	  	  	  	  	  	  
	
Current Residual Loss / (Gain)

	  	  	  	  	  	  	  	  	
$

	  	  	  	  
	
Cumulative Residual Loss / (Gain)

	  	  	  	  	  	  	  	  	
$

	  	  	  	  
	
Cumulative Residual Loss / (Gain) as % of Cut-off Date Securitization Value

	  	  	  	  	  	
%

	  	  	  	  

 

 

 

 

  

C-5

  

 

 

EXHIBIT D

 

FORM OF PERFORMANCE CERTIFICATION

 

Re:  Mercedes-Benz Auto Lease Trust 201[__]-[__]

 

The undersigned Servicer hereby certifies to _______ and its officers, directors and Affiliates (collectively, the “Certification Parties”) as follows, with the knowledge and intent that the Certification Parties will rely on this Certification in connection with the certification concerning the Issuer to be signed by an officer of the Servicer pursuant to the Sarbanes-Oxley Act of 2002:

 

1.           I have reviewed:

 

(i)           the servicer compliance statement of the Servicer provided in the form specified by Item 1123 of Regulation AB (the “Compliance Statement”);

 

(ii)          the report on assessment of the Servicer’s compliance with the servicing criteria set forth in Item 1122(d) of Regulation AB (the “Servicing Criteria”), provided in accordance with Rules 13a-18 and 15d-18 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”), and Item 1122 of Regulation AB (the “Servicing Assessment”);

 

(iii)          the registered public accounting firm’s attestation report provided in the form specified by Rules 13a-18 and 15d-18 under the Exchange Act and Section 1122(b) of Regulation AB (the “Attestation Report”); and

 

(iv)          all servicing reports, officer’s certificates and other information relating to the servicing of the 201[__]-[__] Leases and 201[__]-[__] Vehicles by the Servicer during 20___ that were delivered by the Servicer to the Indenture Trustee pursuant to the Agreement (collectively, the “Servicing Information”).

 

2.           Based on my knowledge, the Servicing Information, taken as a whole, does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in the light of the circumstances under which such statements were made, not misleading with respect to the period of time covered by the Servicing Information.

 

3.           Based on my knowledge, all of the Servicing Information required to be provided by the Servicer under the Agreement has been provided to the Indenture Trustee.

 

4.           I am responsible for reviewing the activities performed by Mercedes-Benz Financial Services USA LLC, as Servicer (the “Servicer”) under the 201[__]-[__] Servicing Supplement, dated as of [____ __], 201[__] (the “Agreement”), among Mercedes Benz Financial Services USA LLC, as the lender (in such capacity, the “Lender”) and as servicer (in such capacity, the “Servicer”), Daimler Trust (the “Titling Trust”) and Daimler Title Co., as collateral agent (the “Collateral Agent”), and based on my knowledge and the compliance review conducted in preparing the Compliance Statement and except as disclosed in the Compliance

 

 

  

D-1

  

 

Statement, the Servicing Assessment or the Attestation Report, the Servicer has fulfilled its obligations under the Agreement in all material respects.

 

5.           The Compliance Statement required to be delivered by the Servicer pursuant to the Agreement, and the Servicing Assessment and Attestation Report required to be provided by the Servicer pursuant to the Agreement, have been provided to the Indenture Trustee.  Any material instances of noncompliance described in such reports have been disclosed to the Transferor.  Any material instance of noncompliance with the Servicing Criteria has been disclosed in such reports.

 

Capitalized terms not otherwise defined herein have the meanings ascribed thereto in the Agreement.

 

 

	Date"  _________________________________	 	 
	 	
MERCEDES-BENZ FINANCIAL SERVICES USA LLC

	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name:	 
	 	 	Title: 	 
	 	 	 	 

 

 

 

  

D-2

  

 

 

EXHIBIT E

 

SERVICING CRITERIA TO BE ADDRESSED IN ASSESSMENT OF COMPLIANCE

 

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

 

	
Reference

	
Criteria

	
Applicable Servicing Criteria

	
Responsible

 Party

	  	
 

General Servicing Considerations

 

	  	  
	
1122(d)(1)(i)

	
Policies and procedures are instituted to monitor any performance or other triggers and events of default in accordance with the transaction agreements.

 

	  	
Servicer

	
1122(d)(1)(ii)

	
If any material servicing activities are outsourced to third parties, policies and procedures are instituted to monitor the third party’s performance and compliance with such servicing activities.

 

	  	
Servicer

	
1122(d)(1)(iii)

	
Any requirements in the transaction agreements to maintain a back-up servicer for the pool assets are maintained.

 

	
N/A

	  
	
1122(d)(1)(iv)

	
A fidelity bond and errors and omissions policy is in effect on the party participating in the servicing function throughout the reporting period in the amount of coverage required by and otherwise in accordance with the terms of the transaction agreements.

 

	
N/A

	  
	  	
 

Cash Collection and Administration

 

	  	  
	
1122(d)(2)(i)

	
Payments on pool assets are deposited into the appropriate custodial bank accounts and related bank clearing accounts no more than two business days following receipt, or such other number of days specified in the transaction agreements.

 

	  	
Servicer

	
1122(d)(2)(ii)

	
Disbursements made via wire transfer on behalf of an obligor or to an investor are made only by authorized personnel.

 

	
N/A for obligor disbursements

	
Servicer

	
1122(d)(2)(iii)

	
Advances of funds or guarantees regarding collections, cash flows or distributions, and any interest or other fees charged for such advances, are made, reviewed and approved as specified in the transaction agreements.

 

	  	
Servicer

	
1122(d)(2)(iv)

	
The related accounts for the transaction, such as cash reserve accounts or accounts established as a form of overcollateralization, are separately maintained (e.g., with respect to commingling of cash) as set forth in the transaction agreements.

 

	  	
Servicer

	

1122(d)(2)(v)

	Each custodial account is maintained at a federally insured depository institution as set forth in the transaction	 	 

 

 

 

 

 

  

E-1

  

 

 

	 Reference	 Criteria	 Applicable Servicing Criteria	 Responsible 

 Party

	 	
agreements. For purposes of this criterion, “federally insured depository institution” with respect to a foreign financial institution means a foreign financial institution that meets the requirements of Rule 13k-1(b)(1) of the Securities Exchange Act.

 

	
N/A

	  
	
1122(d)(2)(vi)

	
Unissued checks are safeguarded so as to prevent unauthorized access.

 

	
N/A

	  
	
1122(d)(2)(vii)

	
Reconciliations are prepared on a monthly basis for all asset-backed securities related bank accounts, including custodial accounts and related bank clearing accounts. These reconciliations are (A) mathematically accurate; (B) prepared within 30 calendar days after the bank statement cutoff date, or such other number of days specified in the transaction  agreements; (C) reviewed and approved by someone other than the person who prepared the reconciliation; and (D) contain explanations for reconciling items. These reconciling items are resolved within 90 calendar days of their original identification, or such other number of days specified in the transaction agreements.

 

	  	
Servicer

	  	
Investor Remittances and Reporting

	  	  
	
1122(d)(3)(i)

	
Reports to investors, including those to be filed with the Commission, are maintained in accordance with the transaction agreements and applicable Commission requirements. Specifically, such reports (A) are prepared in accordance with timeframes and other terms set forth in the transaction agreements; (B) provide information calculated in accordance with the terms specified in the transaction agreements; (C) are filed with the Commission as required by its rules and regulations; and (D) agree with investors’ or the trustee’s records as to the total unpaid principal balance and number of pool assets serviced by the Servicer.

 

	  	
Servicer

	
1122(d)(3)(ii)

	
Amounts due to investors are allocated and remitted in accordance with timeframes, distribution priority and other terms set forth in the transaction agreements.

 

	  	
Servicer

	
1122(d)(3)(iii)

	
Disbursements made to an investor are posted within two business days to the Servicer’s investor records, or such other number of days specified in the transaction agreements.

 

	  	
Servicer

	
1122(d)(3)(iv)

	
Amounts remitted to investors per the investor reports agree with cancelled checks, or other form of payment, or custodial bank statements.

	  	
Servicer

 

 

 

  

E-2

  

 

 

 

	 Reference	 Criteria	 Applicable Servicing Criteria	  Responsible 

 Party

	  	
Pool Asset Administration

	  	  
	
1122(d)(4)(i)

	
Collateral or security on pool assets is maintained as required by the transaction agreements or related pool asset documents.

 

	  	
Servicer

	
1122(d)(4)(ii)

	
Pool assets and related documents are safeguarded as required by the transaction agreements

 

	  	
Servicer

	
1122(d)(4)(iii)

	
Any additions, removals or substitutions to the asset pool are made, reviewed and approved in accordance with any conditions or requirements in the transaction agreements.

 

	  	
Servicer

	
1122(d)(4)(iv)

	
Payments on pool assets, including any payoffs, made in accordance with the related pool assets documents are posted to the Servicer’s obligor records maintained no more than two business days after receipt, or such other number of days specified in the transaction agreements, and allocated to principal, interest or other items (e.g., escrow) in accordance with the related pool asset documents.

 

	  	
Servicer

	
1122(d)(4)(v)

	
The Servicer’s records regarding the pool assets agree with the Servicer’s records with respect to an obligor’s unpaid principal balance.

 

	  	
Servicer

	
1122(d)(4)(vi)

	
Changes with respect to the terms or status of an obligor's pool assets (e.g., loan modifications or re-agings) are made, reviewed and approved by authorized personnel in accordance with usual customary procedures.

 

	  	
Servicer

	
1122(d)(4)(vii)

	
Loss mitigation or recovery actions (e.g., forbearance plans, modifications and deeds in lieu of foreclosure, foreclosures and repossessions, as applicable) are initiated, conducted and concluded in accordance with usual customary procedures.

 

	  	
Servicer

	
1122(d)(4)(viii)

	
Records documenting collection efforts are maintained during the period a pool asset is delinquent in accordance with the transaction agreements. Such records are maintained on at least a monthly basis, or such other period specified in the transaction agreements, and describe the entity’s activities in monitoring delinquent pool assets including, for example, phone calls, letters and payment rescheduling plans in cases where delinquency is deemed temporary (e.g., illness or unemployment).

 

	  	
Servicer

	
1122(d)(4)(ix)

	
Adjustments to interest rates or rates of return for pool assets with variable rates are computed based on the related pool asset documents.

 

	
N/A

	  

 

 

  

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1122(d)(4)(x)

	
Regarding any funds held in trust for an obligor (such as escrow accounts): (A) such funds are analyzed, in accordance with the obligor’s pool asset documents, on at least an annual basis, or such other period specified in the transaction agreements; (B) interest on such funds is paid, or credited, to obligors in accordance with applicable pool asset documents and state laws; and (C) such funds are returned to the obligor within 30 calendar days of full repayment of the related pool assets, or such other number of days specified in the transaction agreements.

 

	
N/A

	  
	
1122(d)(4)(xi)

	
Payments made on behalf of an obligor (such as tax or insurance payments) are made on or before the related penalty or expiration dates, as indicated on the appropriate bills or notices for such payments, provided that such support has been received by the servicer at least 30 calendar days prior to these dates, or such other number of days specified in the transaction agreements.

 

	
N/A

	  
	
1122(d)(4)(xii)

	
Any late payment penalties in connection with any payment to be made on behalf of an obligor are paid from the servicer’s funds and not charged to the obligor, unless the late payment was due to the obligor’s error or omission.

 

	
N/A

	  
	
1122(d)(4)(xiii)

	
Disbursements made on behalf of an obligor are posted within two business days to the obligor’s records maintained by the servicer, or such other number of days specified in the transaction agreements.

 

	
N/A

	  
	
1122(d)(4)(xiv)

	
Delinquencies, charge-offs and uncollectible accounts are recognized and recorded in accordance with the transaction agreements.

 

	  	
Servicer

	
1122(d)(4)(xv)

	
Any external enhancement or other support, identified in Item 1114(a)(1) through (3) or Item 1115 of Regulation AB, is maintained as set forth in the transaction agreements.

	
N/A

	  

 

 

 

 

 

 

 

 

	 	 	 	 
	
 

	
By: 

	/s/ 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

  

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APPENDIX 1

 

USAGE AND DEFINITIONS

 

USAGE

 

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

 

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

 

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

 

(c)           References to words such as “this Agreement”, “herein”, “hereof” and the like shall refer to an agreement that incorporates this Appendix as a whole and not to any particular part, Article or Section within such agreement.  References in an agreement to “Article”, “Section”, “Exhibit”, “Schedule”, “subsection” or another subdivision or to an attachment are, unless otherwise specified, to an article, section, exhibit, schedule, subsection or other subdivision of or an attachment to such agreement.  The term “or” means “and/or” and the term “including” means “including without limitation”.

 

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

 

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

 

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

 

  

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(g)           References to deposits, transfers and payments of any amounts refer to deposits, transfers or payments of such amounts in immediately available funds; and the term “proceeds” has the meaning ascribed to such term in the UCC.

 

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

 

DEFINITIONS

 

“201[__]-[__] ABS Notes” or “Notes” means the Class A-1 Notes, the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, in each case, substantially in the form of Exhibit A to the Indenture.

 

“201[__]-[__] Administration Agreement” means the 201[__]-[__] Administration Agreement, dated as of [_____ __], 201[__], among the Issuer, the Administrator and the Indenture Trustee.

 

“201[__]-[__] Aggregate Base Residual Value” means, as of any date, the aggregate of the Base Residual Values of the 201[__]-[__] Leases as of such date.

 

“201[__]-[__] Aggregate Securitization Value” means, as of any date, the aggregate of the Securitization Values of the 201[__]-[__] Leases as of such date.

 

“201[__]-[__] Available Collections” means, for any Payment Date and the related Collection Period, the sum of 201[__]-[__] Collections and any net investment earnings on amounts on deposit in the 201[__]-[__] Exchange Note Collection Account and the 201[__]-[__] Reserve Account.

 

“201[__]-[__] Available Funds” means, for any Payment Date and the related Collection Period, the sum of (i) 201[__]-[__] Available Collections and (ii) the 201[__]-[__] Reserve Account Draw Amount.

 

“201[__]-[__] Available Funds Shortfall Amount” means, for any Payment Date and the related Collection Period, the amount, if any, by which 201[__]-[__] Available Collections is less than the amount necessary to make the distributions in clauses (i) through (iv) of Section 8.03(a) of the Indenture.

 

“201[__]-[__] Bank Accounts” means the 201[__]-[__] Exchange Note Collection Account, the 201[__]-[__] Distribution Account and the 201[__]-[__] Reserve Account.

 

“201[__]-[__] Basic Documents” means (i) the Basic Documents, (ii) the 201[__]-[__] Servicing Supplement, (iii) the 201[__]-[__] Exchange Note Supplement, (iv) the Control Agreements, (v) the First-Tier Sale Agreement, (vi) the Second-Tier Sale Agreement, (vii) the Indenture, (viii) the 201[__]-[__] Administration Agreement and (ix) the Trust Agreement.

 

“201[__]-[__] Closing Date” means March __, 201[__].

 

  

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“201[__]-[__] Collateral” has the meaning specified in the Granting Clause of the Indenture.

 

“201[__]-[__] Collections” means, for any Payment Date and the related Collection Period, the net amount collected or received by the Servicer on or in respect of the 201[__]-[__] Leases and 201[__]-[__] Vehicles during such Collection Period and transferred to the 201[__]-[__] Exchange Note Collection Account in respect of (i) Base Monthly Payments (including Payments Ahead when received) and any other payments under the 201[__]-[__] Leases, in each case excluding any Administrative Charges, (ii) Repurchase Payments, (iii) Net Liquidation Proceeds, (iv) Excess Mileage/Wear and Tear Fees, (v) proceeds of Dealer Recourse Rights, (vi) Pull Ahead Payments, (vii) Servicer Advances made by the Servicer and (viii) in the case of an optional termination pursuant to Section 5.01 of the 201[__]-[__] Servicing Supplement, the price specified in such Section; provided, however, that 201[__]-[__] Collections shall not include (1) any amounts received with respect to a 201[__]-[__] Lease for which a Repurchase Payment was included in the Collections for any prior Collection Period and (2) any payments received on any 201[__]-[__] Lease to the extent that the Servicer has previously made a Servicer Advance with respect to such 201[__]-[__] Lease and is entitled to reimbursement from such payment.

 

“201[__]-[__] Cutoff Date” means, with respect to the 201[__]-[__] Reference Pool, the close of business on [_____ __], 201[__].

 

“201[__]-[__] Cutoff Date Aggregate Securitization Value” means $__________, the 201[__]-[__] Aggregate Securitization Value as of the 201[__]-[__] Cutoff Date.

 

“201[__]-[__] Distribution Account” means the account designated as such pursuant to Section 4.01(a)(ii) of the 201[__]-[__] Servicing Supplement.

 

“201[__]-[__] Exchange Note” means the note, substantially in the form set forth in Exhibit A to the 201[__]-[__] Exchange Note Supplement, duly executed and authenticated in accordance with the Basic Collateral Agency Agreement and the 201[__]-[__] Exchange Note Supplement.

 

“201[__]-[__] Exchange Note Balance” means, as of any date, the 201[__]-[__] Aggregate Securitization Value.

 

“201[__]-[__] Exchange Note Collection Account” means the account designated as such pursuant to Section 4.01(a)(i) of the 201[__]-[__] Servicing Supplement.

 

“201[__]-[__] Exchange Note Final Scheduled Payment Date” means __________, 201_.

 

“201[__]-[__] Exchange Note Initial Principal Balance” means $__________, which is approximately 100% of the 201[__]-[__] Cutoff Date Aggregate Securitization Value.

 

“201[__]-[__] Exchange Note Interest Amount Due” means, with respect to the 201[__]-[__] Leases and any Payment Date, an amount equal to the sum of (i) the product of (a) the Scheduled Securitization Value as of the first day of the related 201[__]-[__] Exchange Note Interest Period for each 201[__]-[__] Lease, (b) the Securitization Rate of such 201[__]-[__] 

 

  

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Lease and (c) a fraction, (1) the numerator of which is 30 (or 60 in the case of the first Collection Period) and (2) the denominator of which is 360 and (ii) any portion of the 201[__]-[__] Exchange Note Interest Amount Due that was not paid on the immediately preceding Payment Date for such 201[__]-[__] Lease.

 

“201[__]-[__] Exchange Note Interest Distributable Amount” means, with respect to all 201[__]-[__] Leases and any Payment Date, an amount equal to the greater of (i) the lesser of (a) the 201[__]-[__] Exchange Note Interest Amount Due and (b) the 201[__]-[__] Collections and (ii) zero.

 

“201[__]-[__] Exchange Note Interest Period” means, with respect to the 201[__]-[__] Exchange Note and any Payment Date, the related Collection Period.

 

“201[__]-[__] Exchange Note Interest Rate” means a fraction, the numerator of which is equal to the 201[__]-[__] Exchange Note Interest Amount Due, less any portion of the 201[__]-[__] Exchange Note Interest Amount Due that was not paid on any preceding Payment Date, multiplied by 12 (or, six in the case of the first Collection Period) and the denominator of which is the Aggregate Scheduled Securitization Value as of the close of business on the last day of the Collection Period related to the immediately preceding Payment Date.

 

“201[__]-[__] Exchange Note Issuance Date” means the 201[__]-[__] Closing Date.

 

“201[__]-[__] Exchange Note Principal Distributable Amount” means, with respect to any Payment Date and the related Collection Period, the amount by which 201[__]-[__] Collections exceed the 201[__]-[__] Exchange Note Interest Distributable Amount.

 

“201[__]-[__] Exchange Note Purchase Date” means, with respect to the purchase of the 201[__]-[__] Exchange Note pursuant to Section 5.01 of the 201[__]-[__] Servicing Supplement, the Payment Date specified by the Servicer pursuant to such Section.

 

“201[__]-[__] Exchange Note Purchase Price” means an amount equal to the 201[__]-[__] Exchange Note Balance as of the 201[__]-[__] Exchange Note Purchase Date, plus accrued and unpaid interest thereon.

 

“201[__]-[__] Exchange Note Supplement” means the 201[__]-[__] Exchange Note Supplement to the Basic Collateral Agency Agreement, dated as of [_____ __], 201[__], among the Borrower, the Administrative Agent, the Collateral Agent, the Lender, the Servicer and the Indenture Trustee.

 

“201[__]-[__] Exchange Noteholder” means initially, MBFS USA and, after giving effect to the transactions contemplated by the First-Tier Sale Agreement and the Second-Tier Sale Agreement, the Issuer.

 

“201[__]-[__] Lease” means a Lease identified as a “201[__]-[__] Lease” in the Schedule of 201[__]-[__] Reference Pool Assets and included in the 201[__]-[__] Reference Pool, excluding any Lease for which the Repurchase Payment has been paid by the Servicer pursuant to Section 3.05(a) of the 201[__]-[__] Servicing Supplement.

 

  

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“201[__]-[__] Lease File” means, with respect to each 201[__]-[__] Lease, the related Lease File.

 

“201[__]-[__] Reference Pool” means the Collateral Leases and Collateral Vehicles listed on the Schedule of 201[__]-[__] Reference Pool Assets.

 

“201[__]-[__] Reference Pool Servicing Fee” means, with respect to any Collection Period, (i) the product of (a) one-twelfth of 1.00% (or, with respect to the first Payment Date, one-sixth of 1.00%) and (b) the 201[__]-[__] Exchange Note Balance of the first day of such Collection Period, plus (ii) the portion, if any, of the 201[__]-[__] Reference Pool Servicing Fee for one or more prior Collection Periods that has not been paid.

 

“201[__]-[__] Reserve Account” means the account established pursuant to Section 4.01(a)(iii) of the 201[__]-[__] Servicing Supplement.

 

“201[__]-[__] Reserve Account Draw Amount” means, for any Payment Date, the lesser of (i) the amount on deposit in the 201[__]-[__] Reserve Account and (ii) the 201[__]-[__] Available Funds Shortfall Amount; provided, however, that, if on the last day of the related Collection Period the Note Balance is zero, the 201[__]-[__] Reserve Fund Draw Amount for that Payment Date will equal the amount on deposit in and available for withdrawal from the 201[__]-[__] Reserve Account after giving effect to all deposits to and withdrawals from the 201[__]-[__] Reserve Account on the preceding Payment Date.

 

“201[__]-[__] Secured Parties” means the Noteholders.

 

“201[__]-[__] Servicing Agreement” means the Basic Servicing Agreement, as supplemented by the 201[__]-[__] Servicing Supplement.

 

“201[__]-[__] Servicing Supplement” means the 201[__]-[__] Supplement to the Basic Servicing Agreement, dated as of [_____ __], 201[__], among the Servicer, the Lender, the Titling Trust and the Collateral Agent.

 

“201[__]-[__] Vehicle” means the new Mercedes-Benz passenger cars, sport utility vehicles and crossovers and smart automobiles allocated to the 201[__]-[__] Reference Pool.

 

“ABS Control Agreement” means the 201[__]-[__] Collateral Account Control Agreement, dated as of [_____ __], 201[__], among the Issuer, the Indenture Trustee and U.S. Bank, in its capacity as a securities intermediary.

 

“Additional Servicing Fee” means, with respect to any Payment Date and the related Collection Period, if a Successor Servicer has been appointed pursuant to the 201[__]-[__] Servicing Agreement, the amount, if any, by which (i) the compensation payable to such Successor Servicer for such Collection Period exceeds (ii) the 201[__]-[__] Reference Pool Servicing Fee for such Collection Period.

 

“Administrator” means MBFS USA, in its capacity as Administrator pursuant to the 201[__]-[__] Administration Agreement, and its successors in such capacity.

 

  

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“Aggregate Scheduled Securitization Value” means, as of any date, the aggregate of the Scheduled Securitization Values of the 201[__]-[__] Leases as of such date.

 

“ALG Current Residual Value” means, with respect to a 201[__]-[__] Lease, the expected wholesale value of the related 201[__]-[__] Vehicle at its Maturity Date based on a residual value estimate provided by the Automobile Lease Guide in August 2011.

 

“ALG Residual Value” means, with respect to a 201[__]-[__] Lease, the expected wholesale value of a 201[__]-[__] Vehicle at its Maturity Date based on a residual value estimate provided by the Automobile Lease Guide at the time such 201[__]-[__] Lease was originated.

 

“Authenticating Agent” has the meaning specified in the Indenture.

 

“Authorized Officer” means (i) the “Authorized Officers” listed under the definition of the term “Authorized Officer” in Appendix A to the Collateral Agency Agreement; (ii) in the case of the Transferor, those individuals determined pursuant to Section 4.18(a) of the Transferor LLC Agreement; (iii) in the case of the Issuer or the Owner Trustee, any officer of the Owner Trustee or any agent acting pursuant to a power of attorney by the Issuer or the Owner Trustee who is authorized to act for the Issuer or the Owner Trustee in matters relating to the Issuer and who is identified on the list of Authorized Officers delivered by the Owner Trustee to the Indenture Trustee on the 201[__]-[__] Closing Date (as such list may be modified or supplemented from time to time thereafter) and, so long as the 201[__]-[__] Administration Agreement is in effect, any officer of the Administrator who is authorized to act for the Administrator in matters relating to the Issuer and to be acted upon by the Administrator pursuant to the 201[__]-[__] Administration Agreement and who is identified on the list of Authorized Officers delivered by the Administrator to the Indenture Trustee on the 201[__]-[__] Closing Date (as such list may be modified or supplemented from time to time thereafter); and (iv) in the case of the Indenture Trustee and the Note Registrar, any officer within the Corporate Trust Office of such Person, including any vice president, assistant vice president, assistant treasurer, assistant secretary or any other officer of such Person, customarily performing functions similar to those performed by any of the above designated 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.

 

“Base Residual Value” means, with respect to a 201[__]-[__] Lease, the lowest of the (i) Residual Value, (ii) the ALG Residual Value and (iii) the ALG Current Residual Value.

 

“Benefit Plan” means (i) an “employee benefit plan”, as defined in Section 3(3) of ERISA, that is subject to Title I of ERISA, (ii) a “plan”, as defined in Section 4975(e)(1) of the Code, that is subject to Section 4975 of the Code or (iii) an entity whose underlying assets include “plan assets” by reason of such employee benefit plan’s or plan’s investment in the entity (within the meaning of Department of Labor Regulation 29 C.F.R. Section 2510.3-101, as modified by Section 3(42) of ERISA) or any governmental, church, non-U.S. or other plan that is subject to a Similar Law.

 

  

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“Book-Entry Notes” means a beneficial interest in the 201[__]-[__] ABS Notes, ownership and transfers of which shall be made through book entries by a Clearing Agency as described in Section 2.10 of the Indenture.

 

“Certificate” means the Issuer’s asset backed certificates issued pursuant to the Trust Agreement, substantially in the form of Exhibit B to the Trust Agreement.

 

“Certificate Percentage Interest” means, with respect to a Certificate, the percentage specified on such Certificate as the Certificate Percentage Interest, which percentage represents the beneficial interest of the holder of such Certificate in the Issuer.  The initial Certificate Percentage Interest held by MBFS USA shall be 100%.

 

“Certificateholder” means the Person in whose name a Certificate is registered on the Certificate Register.

 

“Certification Parties” means, collectively, the Certifying Person and the entity for which the Certifying Person acts as an officer, and such entity’s officers, directors and Affiliates.

 

“Certifying Person” means an individual who signs the Sarbanes-Oxley Certification.

 

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

 

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

 

“Class A-1 Final Scheduled Payment Date” means __________, 201_ (or, if such day is not a Business Day, the next succeeding Business Day).

 

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

 

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

 

“Class A-1 Notes” means the $__________ aggregate principal amount of the Issuer’s __% Class A-1 Asset Backed Notes, issued pursuant to the Indenture.

 

“Class A-2 Final Scheduled Payment Date” means __________, 201_ (or, if such day is not a Business Day, the next succeeding Business Day).

 

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

 

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

 

  

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“Class A-2 Notes” means the $__________ aggregate principal amount of the Issuer’s __% Class A-2 Asset Backed Notes, issued pursuant to the Indenture.

 

“Class A-3 Final Scheduled Payment Date” means __________, 201_ (or, if such day is not a Business Day, the next succeeding Business Day).

 

“Class A-3 Interest Rate” means ___% per annum (computed on the basis of the actual number of days elapsed, but assuming a 360-day year of twelve 30-day months).

 

“Class A-3 Note Balance” means, as of any date, the Initial Class A-3 Note Balance reduced by all payments of principal made on or prior to such date on the Class A-3 Notes.

 

“Class A-3 Notes” means the $__________ aggregate principal amount of the Issuer’s __% Class A-3 Notes, issued pursuant to the Indenture.

 

“Class A-4 Final Scheduled Payment Date” means __________, 201_ (or, if such day is not a Business Day, the next succeeding Business Day thereafter).

 

“Class A-4 Interest Rate” means ___% per annum (computed on the basis of a 360-day year of twelve 30-day months).

 

“Class A-4 Note Balance” means, as of any date, the Initial Class A-4 Note Balance reduced by all payments of principal made on or prior to such date on the Class A-4 Notes.

 

“Class A-4 Notes” means the $__________ aggregate principal amount the Issuer’s __% Class A-4 Notes, issued pursuant to the Indenture.

 

“Class B Final Scheduled Payment Date” means __________, 201_ (or, if such day is not a Business Day, the next succeeding Business Day thereafter).

 

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

 

“Class B Note Balance” means, as of any date, the Initial Class B Note Balance reduced by all payments of principal made on or prior to such date on the Class B Notes.

 

“Class B Notes” means the $__________ aggregate principal amount the Issuer’s __% Class B Notes, issued pursuant to the Indenture.

 

“Clearing Agency” means an organization registered as a “clearing agency” pursuant to Section 17A of the Exchange Act and shall initially be DTC.

 

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

 

 “Collection Period” means, with respect to any Payment Date, the immediately preceding calendar month (or, in the case of the first Collection Period, the period from but 

 

  

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excluding the Cutoff Date to and including the last day of the calendar month immediately preceding the calendar month in which the first Payment Date occurs).

 

“Commission” means the Securities and Exchange Commission.

 

“Control Agreements” means the ABS Control Agreement and the Titling Trust Control Agreement.

 

“Controlling Class” means the Holders of the 201[__]-[__] ABS Notes.

 

“Corporate Trust Office” means, with respect to

 

(i)           the Indenture Trustee and, for so long as the Indenture Trustee is the Note Registrar, the Note Registrar, the office of the Indenture Trustee at which its corporate trust business is administered, which on the 201[__]-[__] Closing Date is located at:

 

[______________________]

[______________________]

 

[______________________]

 

Attention:  __________

E-mail: _________@_________.com

Telephone:  [______________________]

Fax:  [______________________]

 

or at such other address as each party may designate by notice to the Borrower, the Servicer and each Noteholder; and

 

(ii)           the Owner Trustee, the office of the Owner Trustee at which its corporate trust business is administered, which on the 201[__]-[__] Closing Date is located at:

 

[______________________]

 

[______________________]

Wilmington, Delaware  19890

Attention:  __________

E-mail: _________@_________.com

Telephone:  [______________________]

Fax:  [______________________]

 

or at such other address as the Owner Trustee may designate by notice to the Indenture Trustee and the Transferor, or the principal corporate trust office of any successor Owner Trustee at the address designated by such successor Owner Trustee by notice to the Indenture Trustee and the Transferor.

 

“Default” means any occurrence that with notice or the lapse of time or both would become an Event of Default.

 

  

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“Defaulted Lease” means any Lease with respect to which, at any time prior to its Maturity Date, (i) an amount equal to 10% or more of any related Base Monthly Payment remains unpaid for 120 days or more from the related Payment Due Date, (ii) such Lease has been identified by the Servicer as uncollectible, (iii) the related Vehicle has been repossessed and the related Lease has been terminated, (iv) such Lease has been written off by the Servicer in accordance with the Credit and Collection Policy for writing off lease contracts for leased vehicles other than with respect to repossessions or (v) in respect of which the Servicer’s records, in accordance with the Credit and Collection Policy, indicate that all Insurance Proceeds expected to be received have been received following a casualty or other loss with respect to the related Vehicle.

 

“Definitive Note” means a definitive fully registered Note.

 

“Delaware Secretary of State” means the Secretary of State of the State of Delaware.

 

“Depository Agreement” means the agreement between the Issuer and DTC, as the initial Clearing Agency, dated as of the 201[__]-[__] Closing Date.

 

“Determination Date” means, with respect to any Collection Period, two Business Days before the related Payment Date.

 

“DTC” means The Depository Trust Company.

 

“EDGAR” means the Commission’s Electronic Data Gathering, Analysis and Retrieval system.

 

“Eligible State” means, with respect to the Titling Trust, any State in which the Titling Trust is, if and to the extent required by Applicable Law, qualified, authorized and licensed to hold title or other evidence of the interest in leased vehicles.

 

“Event of Default” has the meaning specified in Section 5.01 of the Indenture.

 

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

 

“Exchange Act Reports” means any reports on Form 10-D, Form 8-K or Form 10-K required to be filed by the Transferor with respect to the Issuer under the Exchange Act.

 

“Exchange Note Supplement” means the 201[__]-[__] Exchange Note Supplement.

 

“FICO” means Fair Isaac & Co.

 

“Final Scheduled Payment Date” means with respect to (i) the Class A-1 Notes, the Class A-1 Final Scheduled Payment Date, (ii) the Class A-2 Notes, the Class A-2 Final Scheduled Payment Date, (iii) the Class A-3 Notes, the Class A-3 Final Scheduled Payment Date and (iv) the Class A-4 Notes, the Class A-4 Final Scheduled Payment Date.

 

“First-Tier Assets” has the meaning specified in Section 2.01(a) of the First-Tier Sale Agreement.

 

  

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“First-Tier Sale Agreement” means the First-Tier Sale Agreement, dated as of [_____ __], 201[__], between MBFS USA, as seller, and the Transferor, as purchaser.

 

“Fitch” means Fitch, Inc., or any successor that is a nationally recognized statistical rating organization.

 

“Force Majeure” means any delay or failure in performance caused by acts beyond the Issuer’s reasonable control, including acts of God, war, vandalism, sabotage, accidents, fires, floods, strikes, labor disputes, mechanical breakdown, shortages or delays in obtaining suitable parts or equipment, material, labor, or transportation, acts of subcontractors, interruption of utility services, acts of any unit of government or governmental agency, or any similar cause.

 

“Form 10-D Disclosure Item” means, with respect to any Person, any event specified in Part II of Schedule B to the 201[__]-[__] Exchange Note Supplement for which such Person is the responsible party, if such Person or in the case of the Owner Trustee or Indenture Trustee, a Responsible Officer of such Person, has actual knowledge of such event.

 

“Form 10-K Disclosure Item” means, with respect to any Person, (i) any Form 10D Disclosure Item and (ii) any additional items specified in Part III of Schedule B to the 201[__]-[__] Exchange Note Supplement for which such Person is the responsible party, or if such Person is the Indenture Trustee or the Owner Trustee, a Responsible Officer of such Person has actual knowledge of such event.

 

“Grant” means mortgage, pledge, bargain, sell, warrant, alienate, remise, release, convey, assign, transfer, create and grant a lien upon and a security interest in and right of set-off or recoupment against, and to deposit, set over and confirm pursuant to any 201[__]-[__] Basic Document.  A Grant of the 201[__]-[__] Collateral or of any other agreement or instrument shall include all rights, powers and options (but none of the obligations) of the granting party thereunder, including the immediate and continuing right to claim for, collect, receive and give receipt for principal and interest payments in respect of the 201[__]-[__] Collateral and all other monies payable thereunder, to give and receive notices and other communications, to make waivers or other agreements, to exercise all rights and options, to bring Proceedings in the name of the granting party or otherwise, and generally to do and receive anything that the granting party is or may be entitled to do or receive thereunder or with respect thereto.

 

“Indenture” means the Indenture, dated as of [_____ __], 201[__], between the Issuer and the Indenture Trustee.

 

“Indenture Trustee” means U.S. Bank, as indenture trustee under the Indenture, and its successors in such capacity.

 

“Independent” means, with respect to any Person, that such Person (i) is in fact independent of the Issuer, any other obligor on the Notes, the Transferor, the Servicer and any of their respective Affiliates, (ii) does not have any direct financial interest or any material indirect financial interest in the Issuer, any such other obligor, the Transferor, the Servicer or any of their respective Affiliates and (iii) is not connected with the Issuer, any such other obligor, the Transferor, the Servicer or any of their respective Affiliates as an officer, employee, promoter, underwriter, trustee, partner, director or individual or entity performing similar functions.

 

  

A1-11

  

“Independent Certificate” means a certificate or opinion to be delivered to the Indenture Trustee under the circumstances described in, and otherwise complying with, the applicable requirements of Section 11.01 of the Indenture, made by an Independent appraiser or other expert appointed by an Issuer Order and acceptable to the Indenture Trustee in the exercise of reasonable care, and such opinion or certificate shall state that the signer has read the definition of “Independent” and the signer is Independent within the meaning thereof.

 

“Initial Class A-1 Note Balance” means $___________.

 

“Initial Class A-2 Note Balance” means $___________.

 

“Initial Class A-3 Note Balance” means $___________.

 

“Initial Class A-4 Note Balance” means $___________.

 

“Initial Class B Note Balance” means $___________.

 

“Initial Note Balance” means, as the context may require, with respect to (i) all of the Notes, $_______ or (ii) any Note, an amount equal to the Initial Class A-1 Note Balance, the Initial Class A-2 Note Balance, the Initial Class A-3 Note Balance or the Initial Class A-4 Note Balance, as the case may be.

 

“Insolvency Event” means, with respect to any Person, (i) the making of a general assignment for the benefit of creditors; (ii) the filing of a voluntary petition in bankruptcy; (iii) being adjudged as bankrupt or insolvent, or having had entered against such Person an order for relief in any bankruptcy or insolvency Proceeding; (iv) the filing by such Person of a petition or answer seeking reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any Insolvency Laws; (v) the filing by such Person of an answer or other pleading admitting or failing to contest the material allegations of a petition filed against such Person in any proceeding specified in clause (viii) below; (vi) the seeking, consenting to or acquiescing in the appointment of a trustee, receiver, liquidator or similar official of such Person or of all or any substantial part of the assets of such Person; (vii) the failure by such Person generally to pay its debts as such debts become due; (viii) the failure to obtain dismissal within 90 days of the commencement of any Proceeding against such Person seeking (a) reorganization, arrangement, composition, readjustment, liquidation, dissolution or similar relief under any statute, law or regulation, or (b) the appointment of a trustee, liquidator, receiver or similar official, in each case of such Person or of such Person’s assets or any substantial portion thereof; and (ix) the taking of action by such Person in furtherance of any of the foregoing.  The foregoing definition of “Insolvency Event” is intended to replace and shall supersede and replace the definition of “Bankruptcy” set forth in Sections 18-101(1) and 18-304 of the Delaware Limited Liability Company Act.

 

“Insolvency Laws” means the Bankruptcy Code and all other applicable liquidation, conservatorship, bankruptcy, moratorium, rearrangement, receivership, insolvency, reorganization, suspension of payments or similar debtor relief laws from time to time in effect affecting the rights of creditors generally.

 

  

A1-12

  

“Interest Distributable Amount” means, with respect to the 201[__]-[__] ABS Notes and any Payment Date and the related Interest Period, the sum of:

 

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

 

(ii)           in the case of (a) the Class A-1 Notes, the product of (1) the Note Balance for the related Class as of the first day of such Interest Period, times (2) the Class A-1 Interest Rate, times (3) a fraction, (A) the numerator of which is the actual number of days in the related Interest Period (or, in the case of the first Payment Date, __) and (B) the denominator of which is 360 or (b) the Class A-2 Notes, the Class A-3 Notes and the Class A-4 Notes, the product of (1) the Note Balance for the related Class as of the first day of such Interest Period, times (2) the Interest Rate for such Class, times (3) a fraction, (A) the numerator of which is 30 (or, in the case of the first Payment Date, __) and (B) the denominator of which is 360.

 

“Interest Period” means, with respect to the 201[__]-[__] ABS Notes, with respect to any Payment Date and (i) the Class A-1 Notes, the period from and including the previous Payment Date (or, in the case of the first Payment Date or if no interest has yet been paid, from and including the 201[__]-[__] Closing Date) to, but excluding, the related Payment Date and (ii) the Class A-2 Notes, Class A-3 Notes and Class A-4 Notes, the period from and including the 15th day of the month in which the preceding Payment Date occurred (or, in the case of the first Payment Date or if no interest has yet been paid, from and including the 201[__]-[__] Closing Date) to but excluding the 15th day of the month in which such Payment Date occurs.

 

“Interest Rate” means the Class A-1 Interest Rate, the Class A-2 Interest Rate, the Class A-3 Interest Rate or the Class A-4 Interest Rate, as applicable.

 

“Issuer” means Mercedes-Benz Auto Lease Trust 201[__]-[__], a Delaware statutory trust.

 

“Issuer Basic Documents” means the 201[__]-[__] Basic Documents to which the Issuer is a party.

 

“Issuer Obligations” means all amounts and obligations which the Issuer may at any time owe under the 201[__]-[__] Basic Documents, including to the Indenture Trustee for the benefit of the Noteholders under the Indenture or the other 201[__]-[__] Basic Documents.

 

“Issuer Order” and “Issuer Request” means a written order of or request by the Issuer, signed by an Authorized Officer and delivered to the Indenture Trustee.

 

“Item 1119 Party” means the Transferor, the Seller, the Servicer, the Indenture Trustee, the Owner Trustee and any other material transaction party, as identified in Schedule A to the 201[__]-[__] Exchange Note Supplement.

 

“Liquidated Lease” means, with respect to any Collection Period, a Lease (i) in respect of which the related Leased Vehicle was sold or otherwise disposed of by the Servicer following the scheduled or early termination of such Lease or (ii) that terminated more than 120 days prior 

 

  

A1-13

  

 

to the end of such Collection Period and the related Leased Vehicle has not been sold or otherwise disposed of by the Servicer as of the end of such Collection Period.

 

“Majority Noteholders” means, as of any date, the Holders of at least a majority of the Outstanding Amount of (i) the 201[__]-[__] ABS Notes or (ii) any Class of Notes, as indicated by the context.

 

“MBFS USA” means Mercedes-Benz Financial Services USA LLC (f/k/a DCFS USA LLC).

 

“Monthly Investor Report” means, with respect to any Collection Period and the related Payment Date, a servicing report setting forth 201[__]-[__] Collections and certain other information regarding the 201[__]-[__] Reference Pool received during or in respect of such Collection Period and the payments due on such Payment Date with respect to the 201[__]-[__] Exchange Note and the 201[__]-[__] ABS Notes, in substantially the form of Exhibit C to the 201[__]-[__] Servicing Supplement.

 

“Monthly Remittance Condition” means (i) that MBFS USA is the Servicer and is a direct or indirect wholly owned subsidiary of Daimler AG, (ii) there exists no Servicer Event of Default and (iii) with respect to (a) Fitch, Daimler AG’s short-term unsecured debt is rated at least “F1” by Fitch and (b) Standard & Poor’s has agreed that the deposit of 201[__]-[__] Collections into the 201[__]-[__] Exchange Note Collection Account may be made by the Servicer on a monthly, rather than a daily, basis without such monthly deposits adversely impacting the ratings of any Outstanding Notes.

 

“Note Balance” means, as of any date, the sum of the Class A-1 Note Balance, the Class A-2 Note Balance, the Class A-3 Note Balance and the Class A-4 Note Balance.

 

“Note Factor” means, with respect to each Class of the 201[__]-[__] ABS Notes on any Payment Date, the four or more digit decimal equivalent of a fraction the numerator of which is the Outstanding Amount of such Class of 201[__]-[__] ABS Notes on such Payment Date (after giving effect to any payment of principal on such Payment Date) and the denominator of which is the Initial Class A-1 Note Balance, the Initial Class A-2 Note Balance, the Initial Class A-3 Note Balance or the Initial Class A-4 Note Balance, as applicable.

 

“Note Owner” means, with respect to any Book-Entry Note, the Person who is the beneficial owner of such Book-Entry Note, as reflected on the books of the Clearing Agency or on the books of a Person maintaining an account with such Clearing Agency (directly as a Clearing Agency Participant or as an indirect participant, in each case in accordance with the rules of such Clearing Agency).

 

“Note Paying Agent” means the Indenture Trustee or any other Person that meets the eligibility standards for the Indenture Trustee specified in Section 6.11 of the Indenture and is authorized by the Issuer to make payments to and distributions from the 201[__]-[__] Distribution Account, including payments of principal of or interest on the 201[__]-[__] ABS Notes on behalf of the Issuer.

 

  

A1-14

  

“Note Redemption Price” means, an amount equal to the sum of (i) the Note Balance as of the Redemption Date plus (ii) the Interest Distributable Amount payable on the Payment Date on which the redemption occurs.

 

“Note Register” and “Note Registrar” have the meanings specified in Section 2.05(a) of the Indenture.

 

“Noteholder” or “Holder” means, as of any date, the Person in whose name a 201[__]-[__] ABS Note is registered on the Note Register on the applicable Record Date.

 

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

 

“Officer’s Certificate” means, with respect to (i) the Servicer, the Transferor or the Administrator, a certificate signed by the chairman of the board, the president, any executive vice president, any vice president, the treasurer, any assistant treasurer, the secretary, any assistant secretary or the controller of the Servicer, the Transferor or the Administrator, as the case may be, and (ii) the Issuer or the Owner Trustee, a certificate signed by any Authorized Officer of the Issuer or the Owner Trustee, under the circumstances described in, and otherwise complying with, Section 11.01 of the Indenture, and delivered to the Indenture Trustee.  Unless otherwise specified by the context, any reference in the Indenture to an Officer’s Certificate shall be to an Officer’s Certificate of the Issuer.

 

“Opinion of Counsel” means a written opinion of counsel who may, except as otherwise provided in the 201[__]-[__] Basic Documents, be employees of or counsel to the Issuer, either Trustee, the Servicer or any of their respective Affiliates and, in the case of an opinion of counsel to be delivered to a party to the 201[__]-[__] Basic Documents or another entity (i) is delivered by counsel reasonably acceptable to the related recipient and (ii) is addressed to the related recipient.

 

“Outstanding” means, as of any date, all 201[__]-[__] ABS Notes authenticated and delivered under the Indenture on or before such date except:

 

(i)           201[__]-[__] ABS Notes that have been cancelled by the Note Registrar or delivered to the Note Registrar for cancellation;

 

(ii)           201[__]-[__] ABS Notes to the extent an amount necessary to pay all or such portion of such 201[__]-[__] ABS Notes has been deposited with the Indenture Trustee or any Note Paying Agent in trust for the Noteholders of such 201[__]-[__] ABS Notes on or before such date; provided that if such 201[__]-[__] ABS Notes are to be redeemed, notice of such redemption has been duly given pursuant to the Indenture or provision for such notice has been made, satisfactory to the Indenture Trustee; and

 

(iii)           201[__]-[__] ABS Notes in exchange for or in lieu of which other 201[__]-[__] ABS Notes have been authenticated and delivered pursuant to the Indenture unless proof satisfactory to the Indenture Trustee is presented that a Protected Purchaser holds any such 201[__]-[__] ABS Notes;

 

  

A1-15

  

provided that in determining (a) whether the Noteholders of 201[__]-[__] ABS Notes evidencing the requisite Note Balance have given any request, demand, authorization, direction, notice, consent, or waiver under any 201[__]-[__] Basic Document, 201[__]-[__] ABS Notes owned by the Issuer, the Transferor, the Servicer or any of their respective Affiliates will be disregarded and deemed not to be Outstanding unless all of the 201[__]-[__] ABS Notes of the related Class or Classes are owned by the Issuer, any other obligor upon the 201[__]-[__] ABS Notes, the Transferor, the Servicer or any of their respective Affiliates and (b) whether the Indenture Trustee is protected in relying on any such request, demand, authorization, direction, notice, consent or waiver, only 201[__]-[__] ABS Notes that an Authorized Officer of the Indenture Trustee knows to be so owned will be disregarded and deemed not to be Outstanding.

 

“Outstanding Amount” means, as of any date, the Note Balance of all Outstanding 201[__]-[__] ABS Notes.

 

“Outstanding Balance” means, with respect to a 201[__]-[__] Lease, the Securitization Value of such 201[__]-[__] Lease as of the 201[__]-[__] Cutoff Date less the principal portion of all payments made in respect of such 201[__]-[__] Lease since the 201[__]-[__] Cutoff Date.

 

“Owner Trustee” means [______________________], solely in its capacity as owner trustee under the Trust Agreement and not in its individual capacity, and any successor in such capacity.

 

“Paying Agent” means the Indenture Trustee or any other Person appointed as such pursuant to Section 3.11 of the Trust Agreement.

 

“Payment Date” means, with respect to the 201[__]-[__] Exchange Note and the 201[__]-[__] ABS Notes, the 15th day of each calendar month, or, if such day is not a Business Day, the next Business Day, beginning [_____ __], 201[__].

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Performance Certification” means each certification delivered to the Certifying Person pursuant to Article Seven of the 201[__]-[__] Exchange Note Supplement.

 

“Predecessor Note” means, with respect to any particular Note, every previous Note evidencing all or a portion of the same debt as that evidenced by such particular Note; and, for the purpose of this definition, any Note authenticated and delivered under Section 2.06 of the Indenture in lieu of a mutilated, lost, destroyed or stolen Note shall be deemed to evidence the same debt as the mutilated, lost, destroyed or stolen Note.

 

“Principal Distribution Amount” means, for any Payment Date, to the extent of funds available for payment, the sum of the Priority Principal Distribution Amount and the Regular Principal Distribution Amount, not to exceed the outstanding Note Balance.

 

“Priority Principal Distribution Amount” means, with respect to any Payment Date, an amount not less than zero, equal to (i) the Outstanding Amount of the Notes as of the preceding Payment Date (after giving effect to any principal payments made on the Notes on such preceding Payment Date) or, in the case of the first Payment Date, the Initial Note Balance, 

 

  

A1-16

  

 

minus (ii) the 201[__]-[__] Aggregate Securitization Value at the end of the related Collection Period; provided, however, that the Priority Principal Distribution Amount on and after the Final Scheduled Payment Date of any Class of the Notes will not be less than the amount that is necessary to reduce the Note Balance of that Class of Notes to zero.

 

“Provided Information” means, with respect to (i) the Indenture Trustee, the Servicing Criteria Assessment provided under Section 7.05 of the 201[__]-[__] Exchange Note Supplement and Section 7.03(b) of the 201[__]-[__] Servicing Supplement by or on behalf of the Indenture Trustee and (ii) the Servicer, the information provided pursuant to Sections 6.03 and 6.04 of the 201[__]-[__] Servicing Supplement, by or on behalf of the Servicer.

 

“Rating Agency” means each of Standard & Poor’s and Fitch; provided, however, that if either of Standard & Poor’s or Fitch ceases to exist, Rating Agency shall mean any nationally recognized statistical rating organization or other comparable Person designated by the Issuer to replace such Person, written notice of which designation shall have been given to the Transferor, the Servicer and the Trustees.

 

“Rating Agency Condition” means, with respect to any action, that each Rating Agency shall have been given ten days (or such shorter period as is practicable or acceptable to each Rating Agency) prior notice thereof and within ten days of each Rating Agency’s receipt of such notice (or such shorter period as is practicable or acceptable to each Rating Agency) such Rating Agency shall not have confirmed in writing that such action shall cause the then-current rating of any class of Notes to be qualified, reduced or withdrawn.

 

“Record Date” means, with respect to a Payment Date or Redemption Date, the close of business on the day immediately preceding such Payment Date or Redemption Date; provided, however, that if Definitive Notes have been issued pursuant to the Indenture, Record Date shall mean, with respect to the 201[__]-[__] ABS Notes and any Payment Date or Redemption Date, the last day of the preceding Collection Period.

 

“Redemption Date” means, with respect to the redemption of the 201[__]-[__] ABS Notes pursuant to Section 10.01 of the Indenture, the Payment Date specified by the Servicer pursuant to such Section.

 

“Registered Holder” means the Person in whose name a Note is registered on the Note Register on the applicable Record Date.

 

“Registered Pledgee” means, with respect to the 201[__]-[__] Exchange Note, the Person listed in the Exchange Note Register as the registered pledgee of the 201[__]-[__] Exchange Note.

 

“Regular Principal Distribution Amount” means, with respect to any Payment Date, an amount not less than zero, equal to (i) the excess, if any, of (a) the Outstanding Amount of the Notes as of the preceding Payment Date (after giving effect to any principal payments made on the Notes on such preceding Payment Date) or, in the case of the first Payment Date, the Initial Note Balance, minus (b) the 201[__]-[__] Aggregate Securitization Value as of the last day of the related Collection Period minus the Target Overcollateralization Amount minus (ii) the Priority Principal Distribution Amount, if any, with respect to such Payment Date.

 

  

A1-17

  

“Reportable Event” means any event required to be reported on Form 8-K, including each event specified on Part IV of Schedule B of the 201[__]-[__] Servicing Supplement (i) for which such Person is the responsible party and (ii) of which such Person (or in the case of the Indenture Trustee, as Responsible Officer of such Person) has actual knowledge.

 

“Representatives” means J.P. Morgan Securities Inc. and ____________, each in its capacity as representative of the underwriters named in the Underwriting Agreement.

 

“Repurchase Payment” means, with respect to a 201[__]-[__] Lease and the related 201[__]-[__] Vehicle required to be purchased by the Servicer pursuant to Section 3.05(a) of the 201[__]-[__] Servicing Supplement, the Outstanding Balance of such 201[__]-[__] Lease plus any accrued but unpaid interest thereon.

 

“Required Reserve Amount” means, (i) $__________ (i.e., ___% of the 201[__]-[__] Cutoff Date Aggregate Securitization Value) or (ii) on any Payment Date occurring on or after the date on which the Outstanding Amount of the Notes has been reduced to zero, zero; provided that the Required Reserve Amount may not be greater than the Note Balance of the Notes.

 

“Reserve Initial Deposit” means, with respect to the 201[__]-[__] Reserve Account, $__________ (i.e., ___% of the 201[__]-[__] Cutoff Date Aggregate Securitization Value).

 

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

 

“Responsible Officer” means any officer of the Indenture Trustee within the Corporate Trust Office, including any Vice President, Assistant Vice President, Assistant Treasurer or 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, in each case having direct responsibility for the administration of the Indenture.

 

“Sarbanes-Oxley Certification” means the certification concerning the Issuer, to be signed by an officer of the Servicer or the Transferor and submitted to the Commission pursuant to the Sarbanes-Oxley Act of 2002.

 

“Schedule of 201[__]-[__] Reference Pool Assets” means the Schedule of 201[__]-[__] Reference Pool Assets appearing as Exhibit B to the 201[__]-[__] Exchange Note Supplement and Exhibit A to the 201[__]-[__] Servicing Supplement.

 

“Scheduled Securitization Value” means, with respect to any 201[__]-[__] Lease and any Collection Period:

 

(i)           if such 201[__]-[__] Lease is not covered by clauses (ii) and (iii) below, as of the close of business on the last day of such Collection Period, the sum of the present 

 

  

A1-18

  

 

values of (a) all scheduled remaining Base Monthly Payments due under that 201[__]-[__] Lease and (b) the Base Residual Value, in each case discounted by using the related Securitization Rate;

 

(ii)          if such 201[__]-[__] Lease became a Defaulted Lease during or prior to such Collection Period, zero; and

 

(iii)         if such 201[__]-[__] Lease became a Liquidated Lease, Extended Lease or a Repurchased Lease prior to such Collection Period, zero.

 

“Second-Tier Assets” has the meaning specified in Section 2.01(a) of the Second-Tier Sale Agreement.

 

“Second-Tier Sale Agreement” means the Second-Tier Sale Agreement, dated as of [_____ __], 201[__], between the Transferor, as seller, and the Issuer, as purchaser.

 

“Securities” means the 201[__]-[__] ABS Notes and the Certificates.

 

“Securities Act” means the Securities Act of 1933 15 U.S.C. 77a et seq., as amended, and any regulations promulgated thereunder.

 

“Securities Intermediary” has the meaning specified in Section 1.01 of the ABS Control Agreement.

 

“Securitization Rate” means, for any 201[__]-[__] Lease and the related 201[__]-[__] Vehicle, the greater of (i) the Contract Rate set forth in the related lease agreement and (ii) ____%.

 

“Securitization Transaction” means any transaction involving a sale or other transfer of Leases and Leased Vehicles directly or indirectly to an issuing entity in connection with the issuance of publicly offered or privately placed rated or unrated asset-backed securities.

 

“Securitization Value” means, with respect to any 201[__]-[__] Lease:

 

(i)           for each 201[__]-[__] Lease as of the 201[__]-[__] Cutoff Date, the sum of the present values of (a) all remaining Base Monthly Payments due under that 201[__]-[__] Lease and (b) the Base Residual Value, in each case discounted by using the related Securitization Rate;

 

(ii)          for each 201[__]-[__] Lease that was not or did not become a Defaulted Lease or a Liquidated Lease as of the last day of any Collection Period , the Securitization Value of such 201[__]-[__] Lease as of the 201[__]-[__] Cutoff Date, less the principal portion of all payments made in respect of such 201[__]-[__] Lease since the 201[__]-[__] Cutoff Date;

 

(iii)         for which the related 201[__]-[__] Vehicle was repurchased by the Servicer during or prior to the Collection Period immediately preceding the Collection Period during which its Maturity Date occurred, zero; and

 

  

A1-19

  

(iiv)        that became a Liquidated Lease or a Defaulted Lease during or prior to the Collection Period immediately preceding the Collection Period during which its Maturity Date occurred, zero.

 

“Securityholder” means any Noteholder or Certificateholder, as applicable.

 

“Servicer Event of Default” means any of the Exchange Note Servicer Events of Default set forth in Section 7.05(a) of the 201[__]-[__] Servicing Supplement.

 

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

 

“Servicing Criteria Assessment” means a report of the Indenture Trustee’s assessment of compliance with the Servicing Criteria pursuant to Section 7.05 of the 201[__]-[__] Exchange Note Supplement, with the Indenture Trustee being shown as the “Responsible Party”) during the immediately preceding calendar year, as set forth under Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

 

“Servicing Supplement” means the 201[__]-[__] Servicing Supplement.

 

“Similar Law” means any federal, State, local or non-U.S. law that is substantially similar to the prohibited transaction provisions of Section 406 of ERISA or Section 4975 of the Code.

 

“Standard & Poor’s” means Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business.

 

“Statutory Exemption” means the prohibited transaction exemption provided by Section 408(b)(17) of ERISA and Section 4975(d)(20) of the Code.

 

“Successor Servicer” means any entity appointed as a successor to the Servicer pursuant the 201[__]-[__] Servicing Agreement.

 

“Target Overcollateralization Amount” means, with respect to any Payment Dates an amount equal to ___% of the 201[__]-[__] Cutoff Date Aggregate Securitization Value.

 

“Titling Trust Agreement” means the titling trust agreement, dated as of June 18, 2007, as amended and restated as of August 1, 2007, as further amended and restated as of April 1, 2008, in each case, among the Titling Trust Administrator, the Initial Beneficiary and the Titling Trustee, as further amended by the amendment to the titling trust agreement, dated as of March 1, 2009.

 

“Titling Trust Control Agreement” means the Titling Trust Account Control Agreement, dated as of [_____ __], 201[__], among the Titling Trust, the Indenture Trustee and [______________________], in its capacity as a securities intermediary.

 

“Transferor” means Daimler Trust Leasing LLC, a Delaware limited liability company.

 

  

A1-20

  

“Transition Costs” means the reasonable costs and expenses (including reasonable attorneys’ fees but excluding overhead) incurred or payable by the Successor Servicer in connection with the transfer of servicing (whether due to termination, resignation or otherwise), including allowable compensation of employees and overhead costs incurred or payable in connection with the transfer of the Lease Files or any amendment to the 201[__]-[__] Servicing Agreement required in connection with the transfer of servicing.

 

“Trust Agreement” means the Amended and Restated Trust Agreement, dated as of [_____ __], 201[__], between the Transferor and the Owner Trustee.

 

“Trust Estate” has the meaning specified in the Indenture.

 

“Trust Indenture Act” or “TIA” means the Trust Indenture Act of 1939 as in force on the Closing Date, unless otherwise specifically provided in the Indenture.

 

“Trustees” means the Indenture Trustee and the Owner Trustee.

 

“Underwriting Agreement” means the Underwriting Agreement, dated March __, 201[__], among the Transferor, MBFS USA and the Representatives.

 

“United States” or “U.S.” means the United States of America.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

  

A1-21

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