Document:

EX-10.6

 Exhibit 10.6 

Execution Version 
  

 
 ACAR LEASING LTD., 

as Titling Trust, 
 AMERICREDIT
FINANCIAL SERVICES, INC., 
 as Servicer, 

APGO TRUST, 
 as Settlor 

 
 and 

WELLS FARGO BANK, NATIONAL ASSOCIATION, 

as Collateral Agent 
  

 
 THIRD AMENDED
AND RESTATED 
 SERVICING AGREEMENT 

Dated as of January 24, 2018 
  

 
  

 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	Page	 
	ARTICLE I DEFINITIONS AND INTERPRETIVE PROVISIONS	  	 	2	 
			
	 SECTION 1.1.
	 	Definitions	  	 	2	 
	 SECTION 1.2.
	 	Other Definitional Provisions	  	 	2	 
	 SECTION 1.3.
	 	Amendment and Restatement	  	 	3	 
		
	 ARTICLE II ADMINISTRATION AND SERVICING OF LEASE AGREEMENTS
	  	 	3	 
			
	 SECTION 2.1.
	 	Duties of the Servicer	  	 	3	 
	 SECTION 2.2.
	 	Records	  	 	6	 
	 SECTION 2.3.
	 	Custodial Duties of Servicer	  	 	7	 
	 SECTION 2.4.
	 	Certificates of Title	  	 	7	 
	 SECTION 2.5.
	 	Initial Funding of Payments to Dealers	  	 	8	 
	 SECTION 2.6.
	 	Servicer’s Repurchase Obligations and Option	  	 	8	 
	 SECTION 2.7.
	 	Collections, Security Deposits, Payments Ahead and Other Receipts	  	 	10	 
	 SECTION 2.8.
	 	Settlement of Accounts	  	 	12	 
	 SECTION 2.9.
	 	Servicing Compensation	  	 	13	 
	 SECTION 2.10.
	 	Servicing Expenses and Reimbursement	  	 	14	 
	 SECTION 2.11.
	 	Repossession, Recovery and Sale of Leased Vehicles	  	 	14	 
	 SECTION 2.12.
	 	Servicer to Act on Behalf of Trustee	  	 	16	 
	 SECTION 2.13.
	 	Liability of Servicer; Indemnities	  	 	18	 
	 SECTION 2.14.
	 	Third Party Claims	  	 	19	 
	 SECTION 2.15.
	 	Insurance	  	 	19	 
	 SECTION 2.16.
	 	Subservicer	  	 	20	 
	 SECTION 2.17.
	 	Pull Ahead Lease Agreements	  	 	21	 
		
	 ARTICLE III ACCOUNTS, STATEMENTS AND REPORTS
	  	 	21	 
			
	 SECTION 3.1.
	 	Establishment of Collection Accounts	  	 	21	 
	 SECTION 3.2.
	 	Reporting by the Servicer; Delivery of Certain Documentation	  	 	23	 
		
	 ARTICLE IV SERVICER DEFAULTS
	  	 	24	 
			
	 SECTION 4.1.
	 	Servicer Defaults; Termination of Servicer	  	 	24	 
	 SECTION 4.2.
	 	No Effect on Other Parties	  	 	26	 
		
	 ARTICLE V THE SERVICER
	  	 	26	 
			
	 SECTION 5.1.
	 	Representations and Warranties	  	 	26	 
	 SECTION 5.2.
	 	Limitation on Liability of Servicer	  	 	28	 
	 SECTION 5.3.
	 	Merger	  	 	28	 
	 SECTION 5.4.
	 	Servicer Not to Resign; Assignment	  	 	29	 

  
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	ARTICLE VI MISCELLANEOUS	  	 	29	 
			
	 SECTION 6.1.
	 	Termination of Agreement; Transfer of Servicing Materials to Successor Servicer	  	 	29	 
	 SECTION 6.2.
	 	Amendment	  	 	30	 
	 SECTION 6.3.
	 	GOVERNING LAW	  	 	31	 
	 SECTION 6.4.
	 	Relationship of this Agreement to Other Titling Trust Documents	  	 	31	 
	 SECTION 6.5.
	 	Notices	  	 	31	 
	 SECTION 6.6.
	 	Severability of Provisions	  	 	31	 
	 SECTION 6.7.
	 	Binding Effect	  	 	32	 
	 SECTION 6.8.
	 	Table of Contents and Headings	  	 	32	 
	 SECTION 6.9.
	 	Counterparts	  	 	32	 
	 SECTION 6.10.
	 	Further Assurances	  	 	32	 
	 SECTION 6.11.
	 	Third-Party Beneficiaries	  	 	32	 
	 SECTION 6.12.
	 	No Waiver; Cumulative Remedies	  	 	32	 
	 SECTION 6.13.
	 	No Petition	  	 	32	 
	 SECTION 6.14.
	 	Series Liabilities	  	 	32	 
	 SECTION 6.15.
	 	Termination of Like Kind Exchanges	  	 	33	 
	 SECTION 6.16.
	 	Limitation of Liability	  	 	33	 
			
	 EXHIBITS
	 		  			
		
	Exhibit A - Power of Attorney	  	 	A-1	 

  
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 THIRD AMENDED AND RESTATED SERVICING AGREEMENT, dated as of January 18, 2018 (as the same
may be further amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), among ACAR Leasing Ltd., a Delaware statutory trust (the “Titling Trust”), AmeriCredit Financial Services,
Inc., a Delaware corporation (“AmeriCredit”), as servicer (the “Servicer”), APGO Trust (“APGO”), a Delaware statutory trust, as Settlor of the Titling Trust (the “Settlor”), and
Wells Fargo Bank, National Association, a national banking association (“Wells Fargo”), as collateral agent (the “Collateral Agent”). 

RECITALS 
 WHEREAS, the parties
to this Agreement intend to amend and restate the Servicing Agreement, dated as of June 1, 2008, as previously amended and restated as of January 31, 2011 (the “Original Servicing Agreement”) and as of May 23, 2013
(the “Amended Servicing Agreement” and together with the Original Servicing Agreement, the “Prior Servicing Agreements”), among the parties, on the terms and conditions contained in this Agreement; 

WHEREAS, APGO, as the Settlor, and Wilmington Trust Company, a Delaware trust company (“WTC”), as the Owner Trustee,
Administrative Trustee and Delaware Trustee (in any or all such capacities, the “Trustee”), have entered into an Amended and Restated Trust Agreement, dated as of January 31, 2011 (as the same may be further amended, restated,
supplemented or otherwise modified from time to time, the “Titling Trust Agreement”), pursuant to which the Titling Trust was established for the purpose of, among other things, taking assignments and conveyances of and holding in
trust various assets (the “Trust Assets”); 
 WHEREAS, the Titling Trust is the borrower (in such capacity, the
“Borrower”) under a Second Amended and Restated Credit and Security Agreement, dated as of January 18, 2018 (as the same may be further amended, restated, supplemented or otherwise modified from time to time, the
“Credit and Security Agreement”), among the Borrower, Wells Fargo, as the Administrative Agent (in such capacity, the “Administrative Agent”), the Collateral Agent, and AmeriCredit, as the lender (in such capacity,
the “Lender”) and the Servicer, pursuant to which it borrows amounts from the Lender from time to time pursuant to a Lending Facility to fund its acquisition of those Trust Assets comprising Collateral Assets; 

WHEREAS, the Titling Trust and the Settlor wish to engage the Servicer to perform certain duties with respect to the Collateral Assets and all
other Trust Assets (unless and until such time as the Titling Trust and the Settlor may enter into one or more additional Series Servicing Agreements with respect to any Trust Assets that do not constitute Collateral Assets) in the manner set forth
herein; 
 WHEREAS, the parties hereto acknowledge that in connection with, among other things, the establishment from time to time of
Designated Pools comprised of Collateral Assets backing Exchange Notes that will be issued pursuant to the Credit and Security Agreement, it may be necessary or desirable to enter into supplemental agreements hereto, providing for specific servicing
obligations in connection therewith (each, a “Servicing Supplement”); and 

  

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

DEFINITIONS AND INTERPRETIVE PROVISIONS 

SECTION 1.1. Definitions. Capitalized terms used in this Agreement that are not otherwise defined herein shall have the meanings
assigned thereto in any Servicing Supplement entered into pursuant hereto or, if not defined therein, in Appendix A to the Credit and Security Agreement or, if not defined therein, in the Definitions Appendix to any Exchange Note Supplement entered
into pursuant to the Credit and Security Agreement. 
 SECTION 1.2. Other Definitional Provisions. 

(a) All terms defined in this Agreement shall have the defined meanings when used in any instrument governed hereby and in any certificate or
other document made or delivered pursuant hereto unless otherwise defined therein. 
 (b) As used in this Agreement, in any instrument
governed hereby and in any certificate or other document made or delivered pursuant hereto or thereto, accounting terms not defined in this Agreement or in any such instrument, certificate or other document, and accounting terms partly defined in
this Agreement or in any such instrument, certificate or other document to the extent not defined, shall have the respective meanings given to them under generally accepted accounting principles as in effect on the date of this Agreement or any such
instrument, certificate or other document, as applicable. To the extent that the definitions of accounting terms in this Agreement or in any such instrument, certificate or other document are inconsistent with the meanings of such terms under
generally accepted accounting principles, the definitions contained in this Agreement or in any such instrument, certificate or other document shall control. 

(c) The words “hereof,” “herein,” “hereunder” and words of similar import when used in this Agreement shall refer
to this Agreement as a whole and not to any particular provision of this Agreement; Section, Schedule and Exhibit references contained in this Agreement are references to Sections, Schedules and Exhibits in or to this Agreement unless otherwise
specified; and the term “including” shall mean “including without limitation.” 
 (d) The definitions contained in this
Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms. 

(e) Any agreement, instrument or statute defined or referred to herein or in any instrument or certificate delivered in connection herewith
means such agreement, instrument or statute as from time to time amended, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein; references to a
Person are also to its permitted successors and assigns. 

  
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 SECTION 1.3. Amendment and Restatement. This Agreement amends and restates in full the
Amended Servicing Agreement, with effect as of the date of this Agreement, and the parties confirm that (a) all prior actions made pursuant to the Prior Servicing Agreements are effective as if made under this Agreement on the date made, and
(b) no provision of this Agreement is intended to result in the duplication of any such prior action by any party. 
 ARTICLE II 

ADMINISTRATION AND SERVICING OF LEASE AGREEMENTS 

SECTION 2.1. Duties of the Servicer. 

(a) The Servicer shall service, administer and collect under the Lease Agreements and in respect of the Leased Vehicles in accordance with this
Agreement, the Titling Trust Agreement and the Credit and Security Agreement 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 unless and until its responsibilities therefor are terminated
pursuant to Section 4.1(a) or this Agreement is terminated pursuant to Section 6.1. In addition, the Titling Trust hereby appoints the Servicer to act as 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. The duties of the Servicer shall include, among other things, in accordance with this Agreement, the Titling Trust Agreement, the Credit and Security Agreement and any
Servicing Supplement: 
 (i) performing on behalf of the Titling Trust all obligations on the part of the Lessor under the
Lease Agreements; 
 (ii) acquiring vehicles and originating Lease Agreements on behalf of the Titling Trust; 

(iii) 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 Lease Agreements, investigating and collecting delinquencies, sending payment statements and reporting Tax information to relevant parties,
paying costs of the sale or other disposition of Matured Vehicles and Leased Vehicles in accordance with the Customary Servicing Practices and this Agreement and paying or causing to be paid all state and local personal property, use, excise and
sales Taxes on the Leased Vehicles (to the extent required to be paid by the Lessor under applicable State law) as and when such Taxes become due; 

(iv) negotiating Lease Agreements nearing their respective Maturity Dates and arranging for Extensions of such Lease Agreements
and/or sale or other disposition of each related Leased Vehicle; 

  
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 (v) executing and delivering or causing to be executed and delivered, in its own
name or in the name 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 Lease Agreements and in
respect of the Leased Vehicles, including: (A) bills of sale; (B) applications for originals or duplicates of Certificates of Title in the name of any Titling Trust Permissible Name and naming the Collateral Agent as lienholder,
applications for registrations of Leased Vehicles or license plates, applications for transfers of Certificates of Title or registrations for Leased 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 Leased Vehicles in the manner contemplated hereby; (C) consents, amendments, extensions, deferrals or modifications to any of the Lease Agreements; and
(D) all other instruments, certificates or other documents similar to the foregoing; 
 (vi) executing powers of
attorney to be delivered for the limited purpose of obtaining license plates and fulfilling other state requirements for registration of the Leased Vehicles; 

(vii) approving repairs to Leased Vehicles and endorsing the related insurance settlement checks for repair work; 

(viii) servicing the Lease Agreements, including: (A) accounting for collections and furnishing periodic statements with
respect to distributions as set forth herein, in the applicable Servicing Supplement, in the Credit and Security Agreement or in the applicable Servicer Basic Documents, (B) generating or causing to be generated federal and State tax
information and, to the extent required by applicable law, returns on behalf of the Titling Trust and (C) filing periodic sales and use Tax or property (real or personal) Tax reports; 

(ix) in connection with the creation and maintenance of the Lending Facility Pool and each Designated Pool, maintaining
separate and distinct records for the Lending Facility Pool and each Designated Pool and separately accounting for the Trust Assets allocated to the Lending Facility Pool and each Designated Pool, including, with respect to (A) the Lending
Facility, preparing and delivering to the Lender, the Owner Trustee and the Collateral Agent a schedule of Lease Agreements and Leased Vehicles allocated to the Lending Facility Pool and (B) any Exchange Note, to the extent provided in the
related Servicing Supplement, preparing and delivering to the related Exchange Noteholder a schedule containing information with respect to the Lease Agreements and Leased Vehicles comprising the related Designated Pool, which schedule of Lease
Agreements and Leased Vehicles and each such information schedule shall contain information as of the most recent Collection Period prior to the date of such delivery; 

(x) applying for and maintaining the licenses and the filings described in Section 2.12(b) or in any Servicing Supplement;

 (xi) preparing and filing any UCC financing statements; 

  
 4 

 (xii) except to the extent prohibited in the related Servicing Supplement with
respect to any Designated Pool, 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 but not limited to (A) reallocating Leased Vehicles
from the related Designated Pool to the Lending Facility Pool on the books and records of the Titling Trust, (B) making the payments described herein on the relevant Exchange Note in connection with such reallocation of Liquidated Vehicles,
(C) causing the assignment of the Net Liquidation Proceeds relating to each such Leased Vehicle to the Qualified Intermediary and directing the Qualified Intermediary, the Owner Trustee, the Collateral Agent and the Titling Trust with respect
to the use of Net Liquidation Proceeds to obtain Replacement Vehicles and exchanging Replacement Vehicles for Liquidated Vehicles, (D) assigning and allocating Replacement Vehicles to the Lending Facility Pool and (E) taking such other
actions as shall be necessary or advisable in connection with implementing such Like Kind Exchanges; 
 (xiii) acting as
agent of the Titling Trust with respect to holding the Collateral Leases and Certificates of Title relating to the Collateral Leased Vehicles; and 

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

(b) The Servicer agrees that its servicing of the Lease Agreements and the Leased Vehicles shall be carried out in accordance with the
Customary Servicing Practices using the same degree of skill and attention (i) as the Servicer exercises from time to time with respect to all comparable Lease Agreements and Leased Vehicles that it services for itself or others or (ii) if
AmeriCredit is no longer the Servicer, as is customarily exercised by prudent servicers employed to service retail leases of motorcycles, automobiles, sport utility vehicles, minivans or light-duty trucks, as applicable, for themselves or others.

 (c) The Servicer may retain subservicers or agents by agreement, power of attorney or otherwise to assist the Servicer in performing its
servicing functions; provided, however, that any delegation of duties to any subservicer or agent shall not relieve the Servicer of any of its obligations hereunder. 

(d) The Servicer is authorized to, in its own name or in the name 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, an Exchange Noteholder or other Secured Party in any Lease Agreement, Leased Vehicle or other Trust 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, a relevant Exchange Noteholder or other Secured Party, each such Person shall thereupon be
deemed to have automatically assigned its interest in (including legal title to) the related Lease Agreement, Leased Vehicle or other Trust Asset, as applicable, to the Servicer to the extent necessary for the purposes of such Proceeding. 

(e) The Titling Trust and the Collateral Agent shall furnish the Servicer with certain revocable powers of attorney and other documents in form
and substance acceptable to the Titling Trust or the Collateral Agent, as applicable, necessary or appropriate to enable the Servicer to carry out its servicing, administration and collection duties hereunder and under each applicable Servicing
Supplement. 

  
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 SECTION 2.2. 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 all funds and other receipts with respect to (i) the Lending Facility and the Lending Facility Pool, (ii) each Exchange Note and the related Designated Pool, (iii) the Trust Assets and (iv) all
matters related directly to the servicing of the Lease Agreements and the Leased Vehicles, in each case as are consistent with the Customary Servicing Practices. Such accounts, records and computer systems shall indicate, among other things, the
Pool to which each Lease Agreement, Leased Vehicle or other Trust Asset is allocated and reflect the interest of the Settlor or the Related Beneficiary, as applicable, therein. Except where otherwise noted in the definition of “Lease
Documents”, the Servicer may originate and/or maintain each Lease Document as an image, fiche or electronic record rather than in original form. The Servicer shall not be required to physically segregate the Lease Documents and related
accounts, records and computer systems from any other leases, leased vehicle and related information and related documentation from other leases or leased vehicles that it services. In accordance with the Customary Servicing Practices, the Servicer
shall conduct, or cause to be conducted, periodic examinations of a representative sample of the Lease Documents and of the related accounts, records and computer systems to verify compliance with the Customary Servicing Practices. 

The Servicer shall promptly report to the Titling Trust, the Administrative Agent and the Collateral Agent any material failure on the part of
the Servicer to hold or retain possession of the Lease Documents 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. 
 (b) The Servicer shall make available to the Titling Trust, the Administrative Agent and the Collateral Agent or their duly
authorized representatives, attorneys or auditors the Lease Documents 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 Trust, the Administrative Agent or the Collateral Agent shall reasonably instruct at the locations where maintained pursuant to this Agreement. 

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

(d) 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 or regulation. 

  
 6 

 (e) 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 2.3. Custodial Duties
of Servicer. The Servicer shall serve as custodian of the Lease Documents for the benefit of the Titling Trust and the Collateral Agent. The Lease Documents are hereby constructively delivered to the Titling Trust with respect to each Lease
Agreement and Leased Vehicle. In its capacity as custodian, the Servicer shall maintain possession of the Lease Documents for the benefit of and as bailee for the Titling Trust and the Collateral Agent and all present and future Secured Parties. All
Lease Documents shall be identified and maintained in such a manner so as to permit retrieval and access. With respect to any Lease Agreements and Leased Vehicles that are allocated to a Designated Pool pursuant to an Exchange Note Supplement, the
custodial duties of the Servicer as related to the Lease Documents relating to such allocated Lease Agreements and Leased Vehicles will be set forth in the related Servicing Supplement. 

SECTION 2.4. Certificates of Title. 

(a) In connection with the filing of the application for each Certificate of Title, the Servicer shall arrange, or cause to be arranged, in
accordance with applicable law, for the related Registrar of Titles to issue and deliver to or upon the order of the Servicer a Certificate of Title identifying the Titling Trust (subject to the applicable terms of any Servicing Supplements, by the
use of any Titling Trust Permissible Name or the use of a quoted phrase or such other similar phrase as will satisfy the Registrar of Titles in each relevant jurisdiction, or such other designation(s) as the Servicer shall determine) as the owner of
the related Leased Vehicle and the Collateral Agent as lienholder with respect to the related Leased Vehicle; provided, however, that nothing herein shall be deemed or construed to require the Servicer to receive a paper Certificate of
Title in any State where the Servicer and the related Registrar of Titles have agreed to record and disclose the interests of the Titling Trust and the Collateral Agent in any electronic title recording system maintained by such Registrar of Titles.
The Certificates of Title shall be held by the Servicer. The Servicer shall direct each Dealer, Assigning Affiliate or other entity selling Leased Vehicles to the Titling Trust, assigning Lease Agreements to the Titling Trust or causing Lease
Agreements to be assigned to the Titling Trust to cause each Certificate of Title to identify the owner of the Leased Vehicle as the Titling Trust (utilizing any Titling Trust Permissible Name), the name of a
co-trustee as may be required under applicable State law or such other designation as may be agreed upon by the Servicer and the Settlor or, subject to the terms of the applicable Servicing Supplement, the
related Secured Party, as applicable, from time to time that is acceptable to the related Registrar of Titles. The Servicer shall further direct each Dealer, Assigning Affiliate or other entity selling Leased Vehicles to the Titling Trust assigning
Lease Agreements or causing Lease Agreements to be assigned to the Titling Trust to cause each Certificate of Title to identify the lienholder with respect to the related Leased Vehicle as the Collateral Agent. 

  
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 (b) Except as otherwise required by applicable law, the related Registrar of Titles or the
Customary Servicing Practices, the Servicer shall direct each Dealer or Assigning Affiliate to include an address as specified by the Servicer as the mailing address for the Certificate of Title, the address of the related lessee as the mailing
address for the vehicle registration, and otherwise to comply with the Servicer’s normal requirements under the Dealer Agreements with respect to each Lease Agreement, Leased Vehicle and Certificate of Title. Except as otherwise required by
applicable law or the applicable Registrar of Titles, so long as a Leased Vehicle is owned by the Titling Trust, the Servicer shall not permit the related Certificate of Title to identify any entity, or to provide for any Liens to be noted thereon,
other than in compliance with Section 2.4(a). 
 (c) Upon transfer to or from the Titling Trust of legal title to any Leased Vehicle,
the Servicer shall cause all applicable Taxes to be paid and will comply with all applicable federal and State law requirements related to the transfer of title to such Leased Vehicle. The Servicer shall remain liable for all applicable Taxes if not
paid. 
 SECTION 2.5. Initial Funding of Payments to Dealers and Assigning Affiliates. In the ordinary course of its business,
AmeriCredit shall maintain or enter into Dealer Agreements with Dealers eligible to generate Lease Agreements. AmeriCredit shall direct each Dealer and Assigning Affiliate (a) to assign to the Titling Trust all Lease Agreements and the related
Leased Vehicles, (b) to transfer to the Titling Trust all Lease Agreements and the related Leased Vehicles and (c) to apply or caused to be applied for the Certificates of Title to the Leased Vehicles sold to the Titling Trust by such
Dealer or Assigning Affiliate to be issued in a manner that satisfies the requirements of Section 2.4(a). AmeriCredit will instruct each Dealer and Assigning Affiliate to deliver the applicable Lease Documents to or upon the order of the
Servicer. The Titling Trust shall pay each Dealer and Assigning Affiliate an amount agreed upon between the Titling Trust or the Servicer and such Dealer or Assigning Affiliate from Advances made by the Lender to the Titling Trust under the Credit
and Security Agreement. 
 SECTION 2.6. Servicer’s Repurchase Obligations and Option. 

(a) The Servicer hereby represents and warrants to the other parties hereto and the parties to the Titling Trust Agreement that, as to each
Lease Agreement and Leased Vehicle as of the relevant Assignment Date, the provisions of Section 2.4 with respect to such Lease Agreement and the application(s) for the related Certificate(s) of Title have been satisfied. The Titling Trust
shall rely on such representation and warranty in accepting each Lease Agreement and Leased Vehicle. Such representation and warranty shall survive the transfer of each Lease Agreement and each related Leased Vehicle, and delivery of the related
Lease Documents to the Titling Trust pursuant to the Titling Trust Agreement and this Agreement. 

  
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 (b) Upon (i) discovery by the Servicer or a Secured Party, or (ii) the receipt of
written notice by or actual knowledge of a Responsible Officer of the Owner Trustee that the representation or warranty in Section 2.6(a) was incorrect as of the related Assignment Date in a manner that materially adversely affects the interest
of the Titling Trust in the related Lease Agreement or a related Leased Vehicle or the security interest of the Collateral Agent in the related Lease Agreement or a related Leased Vehicle, the Person discovering such incorrectness (if other than the
Servicer) shall give prompt written notice to the Servicer and the Collateral Agent. Except as otherwise provided in the applicable Exchange Note Supplement or Servicing Supplement, on or before the last day of the Collection Period that ends at
least thirty (30) days after the Servicer discovers or is notified of such incorrectness, the Servicer shall cure in all material respects the circumstance or condition with respect to which the representation or warranty was incorrect as of
the related Assignment Date (it being understood that the filing of a corrected application for a Certificate of Title with the appropriate Registrar of Titles shall constitute a cure for any breach of a representation or warranty related to the
failure of the Servicer to hold title in the manner described in such Section). If the Servicer will be unable or unwilling to cure such circumstance or condition by such date, on the Payment Date following the Collection Period that ends at least
thirty (30) days after the Servicer discovers or is notified of the incorrectness of the representation or warranty in question, the Servicer shall (i) deposit (or cause to be deposited) into the related Collection Account an amount equal
to the Repurchase Payment and (ii) if such Lease Agreement or Leased Vehicle is (A) part of a Designated Pool, direct the Owner Trustee either to reallocate such Lease Agreement or Leased Vehicle from the related Designated Pool to the
Lending Facility Pool or to cause such Lease Agreement or Leased Vehicle to be conveyed to the related Dealer or Assigning Affiliate as described below or to the Servicer or (B) part of the Lending Facility Pool, unless otherwise directed by
the Servicer, direct the Owner Trustee to cause the Lease Agreement or Leased Vehicle to be conveyed to the related Dealer or Assigning Affiliate as described below or to the Servicer. If the Servicer receives funds from a Dealer or Assigning
Affiliate pursuant to such Dealer’s or Assigning Affiliate’s obligation under a Dealer Agreement or otherwise to repurchase a Lease Agreement or Leased Vehicle that is required to be repurchased or reallocated pursuant to this Section, the
Servicer shall return to such Dealer or Assigning Affiliate the Lease Agreement and/or Leased Vehicle, as applicable, and any Certificate of Title that has been issued with respect to such Leased Vehicle. Such deposit of funds in an amount at least
equal to the Repurchase Payment received from a Dealer or Assigning Affiliate, as the case may be, shall satisfy the Servicer’s obligations pursuant to this Section and shall be deemed to constitute payment in full of the Repurchase Payment
with respect thereto. 
 (c) If the domicile of or title to a Leased Vehicle is changed by a Person other than the Titling Trust, Owner
Trustee, Collateral Agent, Settlor or Servicer and such change would be likely to result in the Titling Trust doing business in a Restricted Jurisdiction, then on the Payment Date related to the Collection Period that ends at least thirty
(30) days after the Servicer discovers or is notified of such change, the Servicer shall purchase such Lease Agreement and the related Leased Vehicle by either (i) depositing to the related Collection Account an amount equal to the
Repurchase Payment or (ii) appropriately segregating and designating an amount equal to the Repurchase Payment on its records, pending application thereof pursuant to this Agreement. 

(d) The purchase by a Dealer or an Assigning Affiliate of a Lease Agreement and/or Leased Vehicle, as the case may be, pursuant to this Section
shall be deemed to cure the breach of representation or warranty or other situation giving rise to the repurchase obligation for purposes of this Agreement. Upon any such purchase, the Titling Trust shall be deemed to transfer, assign, set over and
otherwise convey to the Servicer (or the related Dealer, as applicable), without recourse, representation or warranty, all of the Titling Trust’s interest in the repurchased Lease Agreement and Leased Vehicle, including all monies due or to
become due with respect thereto after the date of such repurchase and all proceeds thereof. 

  
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 (e) Except as otherwise set forth herein or in the related Supplement or Servicing Supplement,
the sole remedy of the Titling Trust, the Settlor and the related Exchange Noteholder with respect to (i) the incorrectness of a representation and warranty set forth in Section 2.6(a) or (ii) a change of domicile of a Leased Vehicle
resulting in the Titling Trust doing business in a Restricted Jurisdiction shall be to require the Servicer to deposit the applicable Repurchase Payment (or such amount as specified in the Servicing Supplement) in the related Collection Account and
thereby purchase the applicable Lease Agreement and Leased Vehicle as provided in this Section. The obligations of the Servicer under this Section shall survive any partial or complete termination of the Servicer hereunder. 

(f) Notwithstanding the foregoing, the Servicer may purchase a Matured Vehicle at any time. If such Leased Vehicle is allocated to (i) the
Lending Facility Pool, the purchase price shall equal the Contract Residual Value relating to such Lease Vehicle as of the related Maturity Date or (ii) a Designated Pool, the purchase price shall be determined as set forth in the related
Servicing Supplement. 
 SECTION 2.7. Collections, Security Deposits, Payments Ahead and Other Receipts. 

(a) The Servicer shall use commercially reasonable efforts to (i) collect all payments or balances required under each Lease Agreement and
(ii) cause all payments required under its Lease Agreement to be made, accompanied by an invoice, payment coupon or electronic funds transfer notice bearing the lease number to which such payment relates. Consistent with the foregoing and in
accordance with its Customary Servicing Practices, the Servicer may in its discretion waive any late payment or extension or deferral charge, in whole or in part, in connection with delinquent payments on or Extensions of a Lease Agreement. The
Servicer shall account to the Titling Trust for the Trust Assets related to each Pool separately in accordance with this Agreement and the other Basic Documents. 

(b) With respect to any Collections and Payments Ahead received by the Servicer: 

(i) Within two (2) Business Days after receiving any check or other receipt related to a Lease Agreement or a related
Leased Vehicle, or with respect to a payment that was remitted improperly 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 to which such payment relates, (C) the nature of the payment, (D) the date of receipt of such payment and (E) the Pool to which such Lease Agreement and the related Leased
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. 

  
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 (iii) The Servicer shall cause the portions of the Administrative Charge
representing allocations of Taxes to be paid or the Servicer shall pay all such amounts as are contemplated by the related Lease Agreement. 

(iv) By the later of the close of business on (A) the second (2nd)
Business Day after receipt or (B) the day on which all related Payment Information is received by the Servicer, the Servicer shall, except as otherwise provided 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 2.11 (it being understood that in
the case of proceeds from the sale or other disposition of a Leased Vehicle that is the subject of a Like Kind Exchange which are part of Collections, the Servicer instead shall make deposits into the related Collection Account when due in
accordance with Section 2.11) or (2) appropriately segregate and designate such funds on its records, pending application thereof pursuant to this Agreement. 

(v) In connection with Like Kind Exchanges, if the Servicer has reallocated any Leased Vehicles from the relevant Designated
Pool to the Lending Facility Pool, by the later of the close of business on (A) the second Business Date after receipt or (B) the day on which all related Payment Information is received by the Servicer, the Servicer shall, except as
otherwise provided in a related Servicing Supplement, cause the Titling Trust to assign the related Net Liquidation Proceeds from the Lending Facility Pool to a Qualified Intermediary to permit the Qualified Intermediary to purchase a Replacement
Vehicle. 
 (vi) If the Servicer receives any Payment Ahead with respect to a Lease Agreement it shall maintain appropriate
records so as to enable it to timely apply such Payment Ahead as an Applied Payment Ahead on the succeeding Payment Due Dates for the related Lease Agreement. On such succeeding Payment Due Dates, the Servicer shall deposit the related Applied
Payment Ahead to the related Collection Account and indicate the corresponding reduction in the Retained Payment Ahead in its records. 

Notwithstanding any other provision in this Section, except as otherwise set forth in the applicable Servicing Supplement, the Servicer shall
be permitted to retain the amounts provided for in such Section received during a Collection Period until such amounts are required to be disbursed on the related Payment Date. 

(c) With respect to Security Deposits: 

(i) Subject to Section 6.1(b), the Servicer shall treat all Security Deposits remitted to it (or deemed remitted to it) in
accordance with the Customary Servicing Practices as agent, custodian and bailee for the Titling Trust and as proceeds of the Lease Agreements, pending application of the proceeds thereof pursuant to clause (ii) below. 

(ii) The Servicer shall apply the proceeds of each Security Deposit in accordance with applicable law, the Customary Servicing
Practices and the terms of the related Lease Agreements, including payment of shortfalls resulting from the related lessee’s default or failure to make payments required by the related Lease Agreement or from damage to the related Leased
Vehicle. Upon termination of a Lease Agreement, 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 Agreement. To the
extent permitted by applicable law and the related Lease Agreement, if a Lease Agreement 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 Agreement. 

  
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 (iii) Except as otherwise required by applicable law, (A) the Servicer shall
not be required to segregate Security Deposits from its own funds and (B) any income earned from any investment on the Security Deposits by the Servicer shall be for the account of the Servicer as additional compensation. 

(d) With respect to any other funds received by the Servicer or the Owner Trustee related to any Trust 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) The Servicer shall from time to time, in accordance with the Titling Trust Agreement or an applicable Exchange Note Supplement or Servicing
Supplement, (i) identify and allocate on the books and records of the Titling Trust certain Lease Agreements and Leased Vehicles into one or more Designated Pools, either upon the initial creation of such Designated Pool or periodically
following its creation, and direct the Owner Trustee to transfer periodically from and to the related accounts of the Titling Trust (A) such funds as are provided for in such Exchange Note Supplement or Servicing Supplement in connection with
any such transfer of Trust Assets and (B) such Designated Pool’s appropriate share of the liabilities of the Titling Trust, as determined in accordance with the Titling Trust Agreement and such Exchange Note Supplement or Servicing
Supplement. 
 (f) In connection with any Like Kind Exchange, the Servicer may, from time to time, in accordance with the Titling Trust
Agreement or an applicable Exchange Note Supplement or Servicing Supplement (including any provision governing the payment of advances by the Servicer), subject to Section 2.11, (i) identify and reallocate or cause to be identified and
reallocated certain Leased Vehicles from the related Designated Pool to the Lending Facility Pool on the books and records of the Titling Trust, and (ii) transfer or cause to be transferred from the Lender Pool to the relevant Exchange Note
Collection Account an amount equal to the Net Liquidation Proceeds of such Liquidated Vehicles as payment for such reallocation. 
 SECTION
2.8. Settlement of Accounts. 
 (a) On or before each Determination Date, the Servicer shall deliver, (i) to the Owner Trustee,
the Settlor, the Lender, the Administrative Agent and the Collateral Agent, a monthly report with respect to the Lending Facility Pool (the “Monthly Lending Facility Pool Report”) and (ii) except as otherwise provided in the
related Servicing Supplement, to the each related Secured Party, a monthly report with respect to each Designated Pool (each, a “Monthly Exchange Note Report”), in each case, documenting, as applicable, (A) all advances to be
made to, and distributions (including Servicer reimbursements) to be made from, the related Collection Account or (B) the manner in which the Servicer will apply all collections on the related Pool received by the Servicer on or prior to the
next Payment Date. 

  
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 (b) 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, the Credit and Security Agreement or a related Servicing
Supplement, transfer from the related Collection Account to the Servicer any due and unpaid Servicing Fees; 
 (ii) as and
when required by the Titling Trust Agreement, this Agreement, the Credit and Security Agreement or a related Exchange Note Supplement or Servicing Supplement, transfer from the Lending Facility Collection Account any expenses or liabilities for
which reimbursement is authorized hereunder or thereunder to the Person entitled thereto; 
 (iii) as and when required by a
related Exchange Note Supplement or Servicing Supplement, transfer from the related Exchange Note Collection Account to the Lending Facility Collection Account funding for each Exchange Note’s share of any allocable expenses or losses for which
reimbursement is authorized by the Titling Trust Agreement, the or such Exchange Note Supplement or Servicing Supplement to the extent not otherwise provided for in this Section; 

(iv) as and when required in connection with the Basic Documents relating to a Transaction, transfer 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 Transaction; and 

(v) as and when required by the Titling Trust Agreement or a related Exchange Note Supplement or Servicing Supplement, transfer
between the related Collection Accounts any other funds as provided for in the Titling Trust Agreement, the Credit and Security Agreement or any such Exchange Note Supplement or Servicing Supplement. 

(c) Anything to the contrary notwithstanding, the Servicer shall be entitled to make any of the foregoing transfers by appropriately
segregating and designating the relevant funds on its records, pending application thereof in accordance with this Agreement. 
 SECTION
2.9. Servicing Compensation. 
 (a) As compensation for the performance of its obligations under this Agreement, and subject to any
applicable Servicing Supplement, the Servicer shall be entitled to receive (i) with respect to the Lending Facility Pool, the Lending Facility Pool Servicing Fee and (ii) with respect to any Designated Pool, the Designated Pool Servicing
Fee and such additional compensation as may be provided for in the related Servicing Supplement. In servicing the Trust Assets allocated to a particular Pool, such servicing compensation shall be calculated based only on such Trust Assets and shall
be deemed to be an expense incurred only with respect to such Pool. The Lending Facility Pool Servicing Fee shall be calculated on the basis of a 360-day year consisting of twelve (12) thirty (30) day
months. 

  
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 (b) Unless otherwise provided in a Servicing Supplement, the Servicer shall be entitled to
additional servicing compensation with respect to the related Trust Assets in the form of Administrative Charges to the extent that such amounts are not required for the payment of insurance premiums, Taxes or similar charges or other charges
required to be paid to Dealers, Assigning Affiliates or other third parties allocable to the Lease Agreements and investment earnings on Security Deposits. 

SECTION 2.10. Servicing Expenses and Reimbursement. 

(a) Subject to any applicable Servicing Supplement, the Servicer shall pay all expenses incurred by it in connection with its servicing
activities and shall not be entitled to reimbursement of such expenses except for unpaid Disposition Expenses, Insurance Expenses and Liquidation Expenses. The Servicer may advance Disposition Expenses, Insurance Expenses, Liquidation Expenses and
Administrative Charges to the extent required to service the related Trust Assets. The Servicer shall be entitled to be reimbursed for Disposition Expenses, Insurance 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. 

(b) Except as otherwise provided in an Exchange Note Supplement or Servicing Supplement, the Servicer may obtain on any day from the Titling
Trust, out of the related Collection Account, reimbursement for any Disposition Expenses, Insurance Expenses and Liquidation Expenses for the related Pool for any or all prior Collection Periods; provided, that the Servicer shall have
delivered to the Owner Trustee an Officer’s Certificate setting forth the calculation of such Disposition Expenses, Insurance Expenses and Liquidation Expenses. 

SECTION 2.11. Repossession, Recovery and Sale of Leased Vehicles. 

(a) Subject to Section 2.12(b) and the related Exchange Note Supplement or Servicing Supplement, the Servicer shall use commercially
reasonable efforts to sell or otherwise dispose of any Matured Vehicle not purchased by the lessee, by a Dealer or Assigning Affiliate and to repossess or recover and sell or otherwise dispose of any Liquidated Vehicle. In accordance with the
foregoing standards, the Servicer shall follow such practices and procedures as are consistent with the standards set forth in Section 2.1 (b), which may include (i) engaging in self-help repossession to the extent permitted under
applicable law, (ii) exercising efforts to realize upon Dealer Recourse as the Servicer may determine in its sole discretion, (iii) consigning a Leased Vehicle to a Dealer or Assigning Affiliate for resale or release (to the extent
permitted by applicable law), (iv) selling a Leased Vehicle at public or private sale in a commercially reasonable manner, (v) commencing and prosecuting Proceedings with respect to such Lease Agreement or a related Leased Vehicle or
(vi) taking any actions as are necessary or desirable in order to transfer a Leased Vehicle in a transaction that qualifies or will qualify as a Like Kind Exchange, in each case in compliance with the related Lease Agreement and all applicable
laws. 

  
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 (b) The Servicer shall not be required to expend its own funds in repairing a Leased Vehicle that
has been damaged by reason of an event for which the related lessee was not required under its Lease Agreement 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 Leased 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 2.10. 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 Owner Trustee upon any such substitution. 
 (c) In connection with any Like Kind Exchange, the Servicer shall direct or
cause to occur all necessary action under such program, including: 
 (i) In order to effect Like Kind Exchanges, the
Servicer shall be permitted from time to time to reallocate Leased Vehicles on the books and records of the Titling Trust from the relevant Designated Pool to the Lending Facility Pool prior to the sale or other disposition of such Leased Vehicles
in accordance with the terms of this Agreement and, with respect to any Leased Vehicle allocated to a Designated Pool, the related Servicing Supplement. Furthermore, in order to effect Like Kind Exchanges, the Servicer shall be permitted from time
to time to assign the Net Liquidation Proceeds relating to any such Leased Vehicle from the Lending Facility Pool to the Qualified Intermediary in connection with obtaining Replacement Vehicles. The Servicer shall be permitted to effect any
reallocation of a Leased Vehicle on the books and records of the Titling Trust from the relevant Designated Pool to the Lending Facility Pool on the Business Day on which the Servicer reasonably believes the sale or other disposition of such Leased
Vehicle shall occur (the “Scheduled Disposition Date”). If a Leased Vehicle has been reallocated from the relevant Designated Pool to the Lending Facility Pool and the anticipated sale or other disposition of such Leased Vehicle
does not occur on or prior to the close of business on the related Scheduled Disposition Date then the Servicer shall immediately reallocate the related Leased Vehicle on the books and records of the Titling Trust from the Lending Facility Pool to
the relevant Designated Pool. 
 (ii) With respect to any Leased Vehicle that is sold or otherwise disposed of following a
reallocation described in Section 2.11(c)(i), the Servicer shall determine the Net Liquidation Proceeds relating to such Leased Vehicle. By no later than the close of business on the first
(1st) Business Day following the day on which such Leased Vehicle was sold or otherwise disposed of, the Servicer shall, or shall cause the Settlor to, subject to the terms of any Servicing
Supplement, (A) deposit cash in an amount equal to the related Net Liquidation Proceeds into the relevant Exchange Note Collection Account, (B) allocate one or more Leased Vehicles with an aggregate Contract Residual Value that is at least
equal to the Net Liquidation Proceeds of the related Leased Vehicle to the relevant Designated Pool or (C) both deposit cash to the relevant Exchange Note Collection Account and allocate one or more Leased Vehicles to the relevant Designated
Pool so that the sum of such cash deposit plus the aggregate Contract Residual Value of such Leased Vehicles is at least equal to the Net Liquidation Proceeds of the related Leased Vehicle. 

  
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 (iii) The Servicer shall use the same commercially reasonable efforts to sell or
otherwise dispose of Liquidated Vehicles under a Like Kind Exchange as required by Sections 2.11(a) and 2.11(b). 
 (iv) Upon
the disposition of a Leased Vehicle and transfer of the proceeds of such disposition to the Qualified Intermediary, AmeriCredit shall direct the Qualified Intermediary to use such proceeds, together with any additional amounts received from the
Settlor and any proceeds then held by the Qualified Intermediary as a result of the disposition of other Leased Vehicles, to acquire one or more Replacement Vehicles. Upon the purchase of any Replacement Vehicle by the Qualified Intermediary, the
Servicer shall cause such Replacement Vehicle to be titled in accordance with Section 2.4 and allocated either (A) to a Designated Pool in accordance with Section 2.11(c)(iii) or (B) if no such allocation to a Designated Pool is
required to fulfill the requirements of Section 2.11(c)(iii), to the Lending Facility Pool. 
 (v) If any Leased Vehicle
is disposed of in connection with a Like Kind Exchange by being sold to AmeriCredit or to an Affiliate of AmeriCredit, AmeriCredit or such Affiliate, as the case may be, shall be deemed to have represented and warranted that (1) the sale price
paid in respect of such sale represents the equivalent amount that AmeriCredit, as Servicer, would have obtained from a third-party purchaser in respect of such Leased Vehicle (unless the Base Residual Value is paid for such Leased Vehicle, in which
case, the amount that would have been paid by a third-party purchaser shall be deemed to be the Base Residual Value), and (2) the costs and expenses of the Servicer to be netted against such proceeds are no greater than had such Leased Vehicle
been sold directly to a third-party purchaser. 
 SECTION 2.12. Servicer to Act on Behalf of Trustee. 

(a) In addition to the duties of the Servicer set forth in this Agreement or any of the other Basic Documents, the Servicer shall perform such
calculations and shall prepare for execution by the Titling Trust or the Owner Trustee or shall cause the preparation by other appropriate Persons of all such documents, reports, filings, instruments, certificates and opinions as it shall be the
duty of the Titling Trust or the Owner Trustee to prepare, file or deliver pursuant to this Agreement or any of the Basic Documents or under state and federal tax and securities laws (including any filings required pursuant to the Sarbanes-Oxley Act
of 2002 or any rule or regulation promulgated thereunder), and at the request of the Owner Trustee shall take all appropriate action that it is the duty of the Titling Trust to take pursuant to this Agreement or any of the Basic Documents. In
accordance with the directions of the Titling Trust or the Owner Trustee, the Servicer shall administer, perform or supervise the performance of such other activities in connection with the Collateral as are not covered by any of the foregoing
provisions and as are expressly requested by the Titling Trust or the Owner Trustee and are reasonably within the capability of the Servicer. 

  
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 (b) Notwithstanding anything in this Agreement or any of the Basic Documents to the contrary, the
Servicer shall be responsible for promptly notifying the Owner Trustee and the Administrative Agent in the event that any withholding tax is imposed on the Titling Trust’s payments (or allocations of income) to any Certificateholder (as defined
in the Titling Trust Agreement) as contemplated by this Agreement or any other Basic Document. Any such notice shall be in writing and specify the amount of any withholding tax required to be withheld by the Owner Trustee or the Administrative Agent
pursuant to such provision. 
 (c) In carrying out the foregoing duties or any of its other obligations under this Agreement, the Servicer
may enter into transactions with or otherwise deal with any of its Affiliates; provided, however, that the terms of any such transactions or dealings shall be in accordance with any directions received from the Titling Trust and shall
be, in the Servicer’s opinion, no less favorable to the Titling Trust in any material respect. 
 (d) The Servicer shall prepare and
file, on behalf of APGO and the Titling Trust, all tax returns, tax elections, financial statements and such annual or other reports attributable to the activities engaged in by the Titling Trust as are necessary for preparation of tax reports,
including without limitation forms 1099. All tax returns will be signed by APGO or the Servicer. 
 (e) Notwithstanding the foregoing, with
respect to matters that in the reasonable judgment of the Servicer are non-ministerial, the Servicer shall not take any action pursuant to this Section 2.12 unless within a reasonable time before the
taking of such action, the Servicer shall have notified the Owner Trustee, the Administrative Agent and the Collateral Agent of the proposed action and the Owner Trustee and, with respect to items (A), (B), (C) and (D) below, the Owner Trustee
shall not have withheld consent. For the purpose of the preceding sentence, “non-ministerial matters” shall include: (A) the amendment of or any supplement to the Credit and Security Agreement;
(B) the initiation of any claim or lawsuit by the Titling Trust and the compromise of any action, claim or lawsuit brought by or against the Titling Trust (other than in connection with the collection of the Lease Agreements or liquidation of
the Leased Vehicles); (C) the amendment, change or modification of this Agreement or any of the Basic Documents; and (D) the removal of, and appointment of a successor, Collateral Agent. 

(f) The Servicer shall identify from time to time all (i) UCC financing statements reflecting certain interests in Lease Agreements
allocated to a particular 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 Owner 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 (items (i) through (v), collectively,
“Filings”) arising with respect to or required of the Owner Trustee or the Titling Trust, including (in the ease of clauses (iii) and (v)) such licenses, permits and other Filings as are required for the Titling Trust or the
Owner Trustee on behalf of the Titling Trust, as the case may be, to originate and accept assignments of Lease Agreements or Leased Vehicles and to be identified and maintained as the owner of the Leased Vehicles on the related Certificates of
Title, as contemplated by Sections 2.4 and 2.5(a). The Servicer shall also identify any surety bonds or other ancillary undertakings required of the Titling Trust or the Owner Trustee in respect of any Filing. The Servicer, with, to the extent
applicable, the cooperation of the Settlor, the Owner Trustee or 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. In connection with the foregoing, the Titling Trust grants to the Servicer such authority, and will, from time to time, execute and deliver to the Servicer any necessary power
of attorney (including a 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 Owner Trustee and take all required action to rectify such noncompliance. Notwithstanding the foregoing, the Servicer shall not be required to perform any of the actions specified in this
Section in connection with any requirements that may be applicable to any Co-Trustee (except to the extent provided for in an applicable Co-Trustee Agreement to which
the Servicer is a party), separate trustee or nominee of the Titling Trust. 

  
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 SECTION 2.13. Liability of Servicer; Indemnities. 

(a) The Servicer (in its capacity as such) shall be liable hereunder only to the extent of the obligations in this Agreement specifically
undertaken by the Servicer and the representations made by the Servicer. 
 (b) The Servicer shall defend, indemnify and hold harmless the
Titling Trust, the Owner Trustee, the Settlor, the Administrative Agent, the Collateral Agent and their respective officers, directors, agents and employees and the Secured Parties from and against any and all costs, expenses, losses, damages,
claims and liabilities, including reasonable fees and expenses of counsel and expenses of litigation arising out of or resulting from the use, ownership or operation by the Servicer or any Affiliate thereof of any Leased Vehicle. 

(c) The Servicer shall indemnify, defend and hold harmless the Titling Trust, the Owner Trustee, the Settlor, the Administrative Agent, the
Collateral Agent and their respective officers, directors, agents and employees and the Secured Parties from and against any Taxes that may at any time be asserted against any of such parties with respect to the transactions contemplated in this
Agreement or any other Basic Document, including, without limitation, any sales, gross receipts, general corporation, tangible or intangible personal property, privilege or license taxes (but not including any federal or other income taxes based on
income payable to such Persons hereunder or thereunder) and costs and expenses in defending against the same. 
 (d) The Servicer shall
indemnify, defend and hold harmless the Titling Trust, the Owner Trustee, the Settlor, the Administrative Agent, the Collateral Agent and their respective officers, directors, agents and employees and the Secured Parties from and against any and all
costs, expenses, losses, claims, damages, and liabilities to the extent that such cost, expense, loss, claim, damage, or liability arose out of, or was imposed upon the Titling Trust, the Owner Trustee, the Settlor, the Administrative Agent, the
Collateral Agent or the Secured Parties by reason of the negligence, misfeasance or bad faith in the performance of the Servicer’s duties under this Agreement or any other Basic Document or by reason of reckless disregard of the Servicer’s
obligations and duties under this Agreement or any other Basic Document (excluding credit and residual value losses). 

  
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 (e) AmeriCredit shall indemnify, defend and hold harmless the Titling Trust, the Owner Trustee,
the Settlor, the Administrative Agent, the Collateral Agent and their respective officers, directors, agents and employees and the Secured Parties from and against any loss, liability or expense incurred by reason of the violation by Servicer of
federal or state securities laws in connection with the registration or the sale of any Exchange Note. 
 (f) Indemnification under this
Article shall include, without limitation, reasonable fees and expenses of counsel and expenses of litigation and shall include costs and expenses incurred in connection with the enforcement of any such indemnification rights. If the Servicer has
made any indemnity payments pursuant to this Section and the recipient thereafter collects any of such amounts from others, the recipient shall promptly repay such amounts collected to the Servicer, without interest. 

(g) The obligations of the Servicer under this Section shall survive (i) any transaction described in Section 5.4 and any acts,
occurrences or transactions related thereto whether arising before or after the date of such transaction, (ii) the resignation or removal of the Servicer, the Owner Trustee, the Administrative Agent or the Collateral Agent and (iii) the
termination of this Agreement, any related Servicing Supplement and the other Basic Documents. 
 SECTION 2.14. Third Party Claims.
The Servicer shall immediately notify the Settlor, the Administrative Agent, the Collateral Agent, the Owner Trustee and each affected Secured Party upon learning of a Claim or Lien of whatever kind of a third party that would be likely to have a
material adverse impact (not reasonably expected to be covered by insurance) on the Titling Trust or any Trust Assets allocated to a particular Pool. The Servicer shall be responsible for the defense of any Claim against the Owner Trustee arising
pursuant to or in connection with a Claim or Proceeding (a) contemplated by SECTION 2.13(a), (b), (c) and (d), subject to the qualifications described therein, (b) originally commenced by the Servicer or the Titling Trust to enforce a
Lease Agreement or (c) with respect to the servicing of a Lease Agreement. If the Servicer is responsible for the defense of such a Proceeding or Claim, the Servicer will provide such information with respect thereto as is reasonably requested
by the Settlor, the Owner Trustee or the related Secured Party, as applicable. 
 SECTION 2.15. Insurance. The Servicer shall cause
each Lease Agreement to require (i) a comprehensive and collision physical damage insurance policy covering the actual cash value of the related Leased Vehicle and (ii) automotive liability insurance in amounts at least equal to the amount
prescribed by applicable State law shall be obtained and maintained in full force and effect during the related Lease Term. Each Lease Agreement shall provide that failure to obtain and maintain the required insurance is a default under the Lease
Agreement. For the avoidance of doubt, evidence that a “self-insurance” policy is maintained that satisfies the dollar amount requirements in clauses (i) and (ii) shall satisfy the requirements of this
Section 2.15. 

  
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 SECTION 2.16. Subservicer. 

(a) The Servicer may enter into subservicing agreements with one or more subservicers for the servicing and administration of any or all of the
Lease Agreements. References in this Agreement to actions taken, to be taken, permitted to be taken, or restrictions on actions permitted to be taken, by the Servicer in servicing the Lease Agreements shall include actions taken, 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 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.

 (b) 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 Persons or otherwise, the Servicer shall remain obligated and liable for the servicing and administering of the Lease Agreements in accordance with the provisions
of this Agreement without diminution of such obligation or liability by virtue of such subservicing agreements. 
 (c) Any subservicing
agreement that may be entered into and any other transactions or servicing arrangements relating to or involving a subservicer in its capacity as such shall be deemed to be between the subservicer and the Servicer alone, and the Titling Trust, the
Owner Trustee and any Secured Party shall not be deemed parties thereto and shall have no claims, rights, obligations, duties or liabilities with respect to the subservicer except as set forth in the next succeeding paragraph. 

In the event the Servicer shall for any reason no longer be acting as such, the Successor Servicer may, in its discretion, thereupon assume
all of the rights and obligations of the outgoing Servicer under a subservicing agreement. In such event, the Successor Servicer shall be deemed to have assumed all of the Servicer’s interest therein and to have replaced the outgoing Servicer
as a party to each such subservicing agreement to the same extent as if such subservicing agreement had been assigned to the Successor Servicer, except that the outgoing Servicer shall not thereby be relieved of any liability or obligations on the
part of the outgoing Servicer to the subservicer under such subservicing agreement. The outgoing Servicer shall deliver to the Successor Servicer all documents and records relating to each such subservicing agreement and the Lease Agreements then
being serviced thereunder and an accounting of amounts collected and held by it and otherwise use its best efforts to effect the orderly and efficient transfer of any subservicing agreement to the Successor Servicer. In the event that the
predecessor servicer is being replaced upon the occurrence of a Lending Facility Servicer Default or Exchange Note Servicer Default or otherwise for cause, the predecessor Servicer shall pay all reasonable
set-up and conversion costs associated with the transfer of the servicing rights to the Successor Servicer. In the event that the Successor Servicer elects not to assume a subservicing agreement, the outgoing
Servicer, at its expense, shall cause the subservicer to deliver to the Successor Servicer all documents and records relating to the Lease Agreements and Leased Vehicles being serviced thereunder and all amounts held (or thereafter received) by such
subservicer (together with an accounting of such amounts) and shall otherwise use its best efforts to effect the orderly and efficient transfer of servicing of the Lease Agreements and Leased Vehicles being serviced by such subservicer to the
Successor Servicer. 

  
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 SECTION 2.17. Pull Ahead Lease Agreements. If a Pull Ahead Program is instituted, any
Lease Agreement subject to such Pull Ahead Program shall become a Pull Ahead Lease Agreement as of the end of the Collection Period during which the related Lessee elected to terminate the Lease Agreement prior to its Maturity Date by delivery of
the related Leased Vehicle to a Dealer and payment of any required Monthly Payments and any other required amount 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 Lease Agreements in accordance with the terms of the related Pull Ahead Program, including pursuing applicable legal remedies if such payments are not paid. For the avoidance of doubt, no Successor Servicer shall be
obligated to maintain a Pull Ahead Program. 
 ARTICLE III 

ACCOUNTS, STATEMENTS AND REPORTS 

SECTION 3.1. Establishment of Collection Accounts. 

(a) Prior to the first Payment Date on which amounts will be due and payable pursuant to Section 10.2 of the Credit and Security Agreement
to a party other than AmeriCredit (in its capacity as Servicer, as Lender or otherwise) the Collateral Agent, on behalf of the Lender, shall establish and maintain in its own name an Eligible Deposit Account (the “Lending Facility Collection
Account”), bearing a designation clearly indicating that the funds deposited therein are held for the benefit of the Collateral Agent on behalf of the Lender. Prior to the establishment of such Lending Facility Collection Account, all
amounts required to be deposited thereto shall instead be deposited with or at the direction of the Servicer, for further application by the Servicer in accordance with the terms hereof. The Collateral Agent will also establish an Exchange Note
Collection Account pursuant to each Servicing Supplement that will relate to the related Designated Pool and Exchange Note. Each Collection Account shall initially be established with the Collateral Agent. 

(b) Unless otherwise specified in the related Servicing Supplement with respect to an Exchange Note Collection Account, funds on deposit in the
Collection Accounts shall be invested by the Collateral Agent (or any custodian with respect to funds on deposit in any such account) in Permitted Investments selected in writing by the Servicer (pursuant to standing instructions or otherwise). All
such Permitted Investments shall be held by or on behalf of the Collateral Agent for the benefit of the related Secured Party. Funds on deposit in any Trust Account shall be invested in Permitted Investments that will mature so that such funds will
be available at the close of business on the Business Day immediately preceding the following Payment Date. All Permitted Investments will be held to maturity. The Servicer acknowledges that upon its written request and at no additional cost, it has
the right to receive notification after the completion of each such investment or the Collateral Agent’s receipt of a broker’s confirmation. The Servicer agrees that such notifications will not be provided by the Collateral Trustee
hereunder, and the Collateral Trustee shall make available, upon request and in lieu of notifications, periodic account statements that reflect such investment activity. No statement need be made available if no activity has occurred in the relevant
Account during such period. 

  
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 (c) All Investment Earnings of moneys deposited in each Collection Account shall be deposited (or
caused to be deposited) in such Collection Account by 10:00 a.m. on each Payment Date by the Collateral Agent and applied in the manner set forth in the Credit and Security Agreement or related Exchange Note Supplement, as applicable, and any loss
resulting from such investments shall be charged to such Collection Account. The Servicer will not direct the Collateral Agent to make any investment of any funds held in any of the Collection Accounts unless the security interest granted and
perfected in such account will continue to be perfected in such investment, in either case without any further action by any Person, and, in connection with any direction to the Collateral Agent to make any such investment, if requested by the
Collateral Agent, the Servicer shall deliver to the Collateral Agent an Opinion of Counsel, acceptable to the Collateral Agent, to such effect. 

(d) The Collateral Agent shall not in any way be held liable by reason of any insufficiency in any of the Collection Accounts resulting from
any loss on any Permitted Investment included therein except for losses attributable to the Collateral Agent’s failure to comply with the applicable investment instructions pursuant to the terms of this Agreement or its failure to make payments
on such Permitted Investments issued by the Collateral Agent, in its commercial capacity as principal obligor and not as Collateral Agent, in accordance with their terms. 

(e) If (i) the Servicer shall have failed to give investment directions in writing for any funds on deposit in the Collection Accounts to
the Collateral Agent by 1:00 p.m. Eastern Time (or such other time as may be agreed by the Servicer and Collateral Agent) on any Business Day the funds in such Collection Account will be invested in accordance with the investment direction most
recently provided by the Servicer; provided, that, if no investment direction has been provided by the Servicer by such date, the funds in such Collection Account will be held univested. 

(f) The Collateral Agent shall possess all right, title and interest in all funds on deposit from time to time in the Collection Accounts and
in all proceeds thereof for the benefit of the related Secured Parties and all such funds, investments, proceeds and income shall be part of the Trust Estate. Except as otherwise provided herein, the Collection Accounts shall be under the sole
dominion and control of the Collateral Agent for the benefit of the related Secured Parties. If, at any time, any of the Collection Accounts ceases to be an Eligible Deposit Account, the Collateral Agent (or the Servicer on its behalf) shall within
five (5) Business Days (or such longer period as to which the Rating Agencies rating any securities backed by the related Exchange Note, if any, may consent) establish a new Collection Account as an Eligible Deposit Account and shall transfer
any cash and/or any investments to such new Collection Account. In connection with the foregoing, the Servicer agrees that, in the event that any of the Collection Accounts are not accounts with the Collateral Agent, the Servicer shall notify the
Collateral Agent in writing promptly upon any of such Collection Accounts ceasing to be an Eligible Deposit Account. 
 (g) With respect to
the Trust Account Property, the Collateral Agent agrees that: 
 (i) any Trust Account Property that is held in deposit
accounts shall be held solely in the Eligible Deposit Accounts; and, except as otherwise provided herein, each such Eligible Deposit Account shall be subject to the exclusive custody and control of the Collateral Agent, and the Collateral Agent
shall have sole signature authority with respect thereto; 

  
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 (ii) any Trust Account Property that constitutes “physical property”
(as such term is defined in the definition of “Delivery” contained in Annex A hereto) shall be delivered to the Collateral Agent in accordance with paragraph (i) of the definition of “Delivery” and shall be held, pending
maturity or disposition, solely by the Collateral Agent or a securities intermediary (as such term is defined in Section 8-102(14) of the UCC) acting solely for the Collateral Agent; 

(iii) the “securities intermediary’s jurisdiction” for purposes of
Section 8-110 of the UCC shall be the State of New York; 
 (iv) any property
that is a book-entry security held through the Federal Reserve System pursuant to Federal book-entry regulations shall be delivered in accordance with paragraph (ii) of the definition of “Delivery” and shall be maintained by the
Collateral Agent, pending maturity or disposition, through continued book-entry registration of such Trust Account Property as described in such paragraph; 

(v) any Trust Account Property that is an “uncertificated security” or a “security entitlement” under
Article 8 of the UCC and that is not governed by clause (4) above shall be delivered to the Collateral Agent in accordance with paragraph (iii) or (iv), if applicable, of the definition of “Delivery” and shall be maintained by
the Collateral Agent, pending maturity or disposition, through continued registration of the Collateral Agent’s (or its nominee’s) ownership of such security; and 

(vi) any cash shall be considered a “financial asset” under Article 8 of the UCC. 

(h) The Servicer shall have the power to instruct the Collateral Agent to make withdrawals and payments from the Collection Accounts for the
purpose of permitting the Servicer and the Collateral Agent to carry out its respective duties hereunder, under the Credit and Security Agreement and under any other agreements related thereto or to withdraw amounts that do not constitute
Collections for any Collection Period that were deposited in error. 
 SECTION 3.2. Reporting by the Servicer; Delivery of Certain
Documentation. 
 (a) On or before each Determination Date, in accordance with Section 2.8(a), the Servicer shall deliver the
Monthly Lending Facility Pool Report to the Owner Trustee, the Settlor, the Lender and the Collateral Agent and each Monthly Exchange Note Report to the related Secured Parties, in each case, for the related Collection Period. Notwithstanding the
foregoing or Section 2.8(a), if at any time no Exchange Notes are outstanding the Servicer shall not be required to deliver any Servicer Reports unless requested to do so by the Lender. 

(b) The Servicer will also provide any additional reports, certificates or notices specified in any Servicing Supplement to the recipients and
in accordance with the terms specified therein. 

  
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 ARTICLE IV 

SERVICER DEFAULTS 
 SECTION 4.1.
Servicer Defaults; Termination of Servicer. 
 (a) The following acts and occurrences, with respect to the Lending Facility Pool will
constitute “Lending Facility Servicer Defaults”: 
 (i) the occurrence of an Insolvency Event with respect
to the Servicer; 
 (ii) failure by the Servicer to remit to the Lending Facility Collection Account any proceeds or payment
required to be so remitted under the terms of this Agreement that continues unremedied for a period of two (2) Business Days after written notice is received by the Servicer from the Titling Trust, the Settlor or the Collateral Agent, or after
discovery of such failure by a Responsible Officer of the Servicer; 
 (iii) failure on the part of the Servicer to observe
its covenants and agreements set forth in Section 5.3; or 
 (iv) failure on the part of the Servicer duly to observe or
perform any other covenants or agreements of the Servicer set forth in this Agreement, which failure (A) materially and adversely affects the rights of the Lender, and (B) continues unremedied for a period of thirty (30) days after
knowledge thereof by the Servicer or after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the Titling Trust, the Settlor, the Administrative Agent or the Collateral
Agent. 
 (b) Except as otherwise provided in the related Servicing Supplement, the following acts and occurrences with respect to any
Designated Pool, will constitute “Exchange Note Servicer Defaults” for such Designated Pool: 
 (i) the
occurrence of an Insolvency Event with respect to the Servicer; 
 (ii) failure by the Servicer to remit to the related
Exchange Note Collection Account any proceeds or payment required to be so remitted under the terms of this Agreement or the related Servicing Supplement that continues unremedied for a period of two (2) Business Days after written notice is
received by the Servicer from by the related Exchange Noteholder, the Administrative Agent or the Collateral Agent, or after discovery of such failure by a Responsible Officer of the Servicer; 

(iii) failure on the part of the Servicer to observe its covenants and agreements set forth in Section 5.3; or 

(iv) failure on the part of the Servicer duly to observe or perform any other covenants or agreements of the Servicer set forth
in this Agreement or the related Servicing Supplement, which failure (A) materially and adversely affects the rights of the related Exchange Noteholder or the Holders of any securities which are secured by the related Exchange Noteholder, and
(B) continues unremedied for a period of thirty (30) days after knowledge thereof by the Servicer or after the date on which written notice of such failure, requiring the same to be remedied, shall have been given to the Servicer by the
related Exchange Noteholder, the Administrative Agent or the Collateral Agent. 

  
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 (c) The Servicer shall provide to the Owner Trustee, the Collateral Agent, the Administrative
Agent the related Secured Party and the related Exchange Noteholder, if applicable, prompt notice of any Lending Facility Servicer Default or Exchange Note Servicer Default. 

(d) If a Lending Facility Servicer Default or Exchange Note Servicer Default shall have occurred and be continuing, the Titling Trust may, upon
being provided indemnity or security satisfactory to it, remedy such Lending Facility Servicer Default or Exchange Note Servicer Default, as applicable, or at the direction of the related Secured Party, by notice to the Servicer, terminate all of
the rights and obligations of the Servicer under this Agreement and the related Servicing Supplement in respect of the related Pool, including all or a portion (allocable to the rights and obligations terminated) of the rights of the Servicer to
receive the servicing compensation provided for in Section 2.10 (or the applicable portion thereof) with respect to such Pool following the assumption by a successor of the Servicer’s duties hereunder. Upon any such termination, the
Servicer shall continue to perform its functions as Servicer until the earlier of the date specified in the termination notice or, if no such date is specified therein, the date of the Servicer’s receipt of such notice, at which time all
rights, powers, duties, obligations and responsibilities of the Servicer under this Agreement and the related Servicing Supplement, whether with respect to the Servicing Fee or otherwise, so terminated with respect to the related Pool shall, as
applicable, vest in and be assumed by a Successor Servicer appointed by the related Secured Party, pursuant to a servicing agreement with the Titling Trust and such Secured Party, containing substantially the same provisions as this Agreement in
respect of the related Pool (including those with respect to the compensation of such Successor Servicer). The Successor Servicer is hereby irrevocably authorized and empowered to execute and deliver, on behalf of the Servicer, as attorney-in-fact or otherwise, all documents and other instruments (including any notices to Lessees deemed necessary or advisable by the Successor Servicer), and to do or
accomplish all other acts or things necessary or appropriate to effect such vesting and assumption. Such action shall include, directing any or all of the related Lessees to remit payments on or in respect of the related Lease Agreements and Leased
Vehicles to an account or address designated by the Successor Servicer. The Servicer shall comply with its obligations under Section 6.1(b) in connection with any such termination. 

(e) All reasonable costs and expenses incurred in connection with transferring the servicing of the related Lease Agreements and Leased
Vehicles to the Successor Servicer and amending this Agreement and the related Servicing Supplement to reflect such succession as Servicer pursuant to this Section shall be paid by the predecessor Servicer upon presentation of reasonable
documentation of such costs and expenses. In the event that a Servicer fails to pay costs and expenses for which it is responsible under this Section within a reasonable time after presentation of such documentation, the Successor Servicer shall be
entitled to reimbursement therefor as a Liability payable from Trust Assets in accordance with Section 7.1 of the Titling Trust Agreement, and the Titling Trust shall be subrogated to the reimbursement rights of the Successor Servicer against
the departing Servicer. 

  
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 (f) At the written direction of the related Secured Party, the Titling Trust shall waive a
default by the Servicer in the performance of its obligations hereunder and its consequences with regard to any Pool, except that any such waiver in respect of a Pool may only be given in accordance with the related Exchange Note Supplement or the
related Servicing Supplement. Upon any such waiver by the Titling Trust of a past default, such default shall cease to exist, and any Lending Facility Servicer Default or Exchange Note Servicer Default, as applicable, arising therefrom shall be
deemed to have been remedied for every purpose of this Agreement and the related Servicing Supplement. No such waiver shall extend to any subsequent or other default or impair any right consequent thereon. 

(g) If the Servicer resigns or is terminated as Servicer hereunder with respect to a Pool, the related Secured Party shall appoint a Successor
Servicer hereunder. If a Successor Servicer is not appointed by the effective date of the predecessor Servicer’s termination hereunder or resignation pursuant to Section 5.4, then the related Secured Party shall promptly appoint or
petition a court of competent jurisdiction to appoint as Successor Servicer with respect to such Pool any established entity the regular business of which includes the servicing of motor vehicle leases or retail installment sale contracts. 

(h) In the event of the partial termination of any, but not all, of the Servicer’s rights and powers hereunder, the Servicer shall
continue to service, administer and collect Lease Agreements and Leased Vehicles in unaffected Pools and shall have the right to receive servicing compensation in accordance with Section 2.9 with respect to all such unaffected Pools. 

(i) Except as otherwise provided in the related Servicing Supplement, any compensation payable to a Successor Servicer may not be in excess of
that permitted by the predecessor Servicer unless the related Secured Parties bear such excess costs exclusively. 
 SECTION 4.2. No
Effect on Other Parties. Upon any complete or partial termination of the rights and powers of the Servicer from time to time pursuant to Section 6.1 or upon any appointment of a Successor Servicer with respect to all or a portion of the
Trust Assets, all rights, powers, duties and obligations of the Titling Trust under this Agreement and each other Titling Trust Document shall remain unaffected by such termination or appointment and shall remain in full force and effect thereafter,
except as otherwise expressly provided in this Agreement or in any other Titling Trust Document. 
 ARTICLE V 

THE SERVICER 
 SECTION 5.1.
Representations and Warranties. As of the date hereof, the Servicer makes the following representations and warranties to the Titling Trust and each Secured Party: 

(a) Organization and Good Standing. The Servicer has been duly organized and is validly existing and in good standing under the laws of
its jurisdiction of organization, with power, authority and legal right to own its properties and to conduct its business as such properties are currently owned and such business is currently conducted, and had at all relevant times, and now has,
power, authority and legal right to enter into and perform its obligations under this Agreement. 

  
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 (b) Due Qualification. The Servicer is duly qualified to do business, is 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 business (including the servicing of the Lease Agreements and Leased Vehicles as required by this
Agreement) requires or shall require such qualification , except when the failure to have any such license, approval or qualification would not be likely to have a material adverse effect on the condition, financial or otherwise, of the Servicer or
would not be likely to have a material adverse effect on the ability of the Servicer to perform its obligations under this Agreement or any Servicing Supplement. 

(c) Power and Authority. The Servicer has the power and authority to execute and deliver this Agreement and the Basic Documents to which
it is a party and to carry out its terms and their terms, respectively, and the execution, delivery and performance of this Agreement and the Basic Documents to which it is a party have been duly authorized by the Servicer by all necessary corporate
action. 
 (d) Binding Obligation. This Agreement and the Basic Documents to which it is a party have been duly executed and delivered
by the Servicer and shall constitute legal, valid and binding obligations of the Servicer enforceable in accordance with their respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws
affecting the enforcement of creditors’ rights generally and by equitable limitations on the availability of specific remedies, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

(e) No Violation. The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms of this Agreement
shall not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the articles of incorporation or bylaws of the Servicer, or any material indenture,
agreement, mortgage, deed of trust or other instrument to which the Servicer is a party or by which it is bound, or result in the creation or imposition of any material Lien upon any of its properties pursuant to the terms of any such indenture,
agreement, mortgage, deed of trust or other instrument, other than this Agreement or a related Servicing Supplement, or violate any law, order, rule or regulation applicable to the Servicer of any court or of any federal or State regulatory body,
administrative agency or other governmental instrumentality having jurisdiction over the Servicer or any of its properties , in each case which breach, default, conflict, lien or violation would be likely to have a material adverse effect on the
financial condition of the Servicer or its ability to perform its obligations under this Agreement or any Servicing Supplement. 
 (f) No
Proceedings. There are no proceedings or investigations pending or, to the Servicer’s knowledge, threatened against the Servicer, before any court, regulatory body, administrative agency or other tribunal or governmental instrumentality
having jurisdiction over the Servicer or its properties (A) asserting the invalidity of this Agreement, (B) seeking to prevent the issuance of the any Exchange Note or the consummation of any of the transactions contemplated by this
Agreement or the Credit and Security Agreement, or (C) seeking any determination or ruling that might materially and adversely affect the performance by the Servicer of its obligations under, or the validity or enforceability of, this Agreement
or (D) seeking to adversely affect the federal income tax or other federal, state or local tax attributes of the Titling Trust or any Pool. 

  
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 (g) No Consents. The Servicer is not required to obtain the consent of any other party or
any consent, license, approval or authorization, or registration or declaration with, any governmental authority, bureau or agency in connection with the execution, delivery, performance, validity or enforceability of this Agreement which has not
already been obtained. 
 SECTION 5.2. Limitation on Liability of Servicer. 

(a) Neither the Servicer nor any of its directors, officers, employees or agents shall be under any liability to the Titling Trust, the
Collateral Agent, any Secured Party or any third party beneficiary of this Agreement or any other Titling Trust Document, except as otherwise provided in the applicable Titling Trust Document, for any action taken or for refraining from the taking
of any action pursuant to this Agreement or any other Titling Trust Document, or for errors in judgment; provided, however, that this provision shall not protect the Servicer or any such individual against any liability that would
otherwise be imposed by reason of willful misfeasance, bad faith or negligence in the performance of duties or by reason of reckless disregard of obligations or duties under this Agreement or any other Titling Trust Document. 

(b) Except as otherwise provided in this Agreement or any other Titling Trust Document, the Servicer shall not be under any obligation to
appear in, prosecute or defend any Proceeding not incidental to its duties to service the Lease Agreements and Leased Vehicles in accordance with this Agreement, and that in its opinion may involve it in any liability; provided,
however, that the Servicer may undertake any reasonable action it may deem necessary or desirable in respect of this Agreement and the rights and duties of the parties hereto and the interests of the Titling Trust, and any reasonable expense
related to any such undertaking by the Servicer shall be reimbursable to the Servicer as Disposition Expenses, Liquidation Expenses or Insurance Expenses, as the case may be, pursuant to Section 2.10 hereof. 

(c) The Servicer and any director, officer, employee or agent of the Servicer may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person respecting any matters arising under this Agreement or any other Titling Trust Document. 

SECTION 5.3. Merger. The Servicer shall not merge or consolidate with any other person, convey, transfer or lease substantially all its
assets as an entirety to another Person, or permit any other Person to become the successor to the Servicer’s business unless, after the merger, consolidation, conveyance, transfer, lease or succession, the successor or surviving entity shall
be capable of fulfilling the duties of the Servicer contained in this Agreement. Any corporation (a) into which the Servicer may be merged or consolidated, (b) resulting from any merger or consolidation to which the Servicer shall be a
party, (c) which acquires by conveyance, transfer, or lease substantially all of the assets of the Servicer, or (d) succeeding to the business of the Servicer, in any of the foregoing cases shall execute an agreement of assumption to
perform every obligation of the Servicer under this Agreement and each other Basic Document and, whether or not such assumption agreement is executed, shall be the successor to the Servicer under this Agreement and each other Basic Document to which
the Servicer is a party 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 other Basic Document, anything in this Agreement or any other Basic Document to the contrary
notwithstanding; provided, however, that nothing contained herein shall be deemed to release the Servicer from any obligation. The Servicer shall provide notice of any merger, consolidation or succession pursuant to this Section to the
Owner Trustee, the Settlor, each Secured Party and the Collateral Agent thirty (30) days prior to such merger, consolidation or succession. Notwithstanding the foregoing, the Servicer shall not merge or consolidate with any other Person or
permit any other Person to become a successor to the Servicer’s business, unless (y) the Servicer shall have delivered to the Owner Trustee, the Settlor, each Secured Party and the Collateral Agent an Officer’s Certificate and an
Opinion of Counsel each stating that such consolidation, merger or succession and such agreement of assumption comply with this Section and that all conditions precedent, if any, provided for in this Agreement relating to such transaction have been
complied with, and (z) the Servicer shall have delivered to the Owner Trustee, the Settlor, each Secured Party and the Collateral Agent an Opinion of Counsel, stating in the opinion of such counsel, either (A) all financing statements and
continuation statements and amendments thereto have been executed and filed that are necessary to preserve and protect the respective interests of the Titling Trust in the Lease Agreements and Leased Vehicles and the Collateral Agent in the
Collateral and reciting the details of the filings or (B) no such action shall be necessary to preserve and protect such interest. 

  
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 SECTION 5.4. Servicer Not to Resign; Assignment. Subject to the provisions of
Section 5.3, the Servicer shall not resign from the obligations and duties imposed on it by this Agreement as Servicer except upon a determination that by reason of a change in legal requirements the performance of its duties under this
Agreement would cause it to be in violation of such legal requirements in a manner which would be likely to result in a material adverse effect on the Servicer, and the Settlor and any Secured Party does not elect to waive the obligations of the
Servicer to perform the duties which render it legally unable to act or to delegate those duties to another Person. Any such determination permitting the resignation of the Servicer shall be evidenced by an Opinion of Counsel to such effect
delivered and acceptable to the Owner Trustee, the Settlor and each Secured Party. No resignation of the Servicer shall become effective until an entity acceptable to Settlor and the each Secured Party shall have assumed the responsibilities and
obligations of the Servicer. 
 ARTICLE VI 

MISCELLANEOUS 
 SECTION 6.1.
Termination of Agreement; Transfer of Servicing Materials to Successor Servicer. 
 (a) This Agreement shall terminate, completely or
(if so indicated) in part with respect to one or more Pools, upon the earlier of (i) the termination of the Titling Trust or, with respect to any Pool, upon the termination of such Pool in accordance with the Credit and Security Agreement and
the related Exchange Note Supplement, (ii) with respect to the Servicer, but not as to any applicable Successor Servicer, the termination of the Servicer as Servicer hereunder in accordance with the terms of this Agreement (completely or with
regard to any of (A) the Servicer’s obligation to cause the assignment of Lease Agreements, Leased Vehicles and related Trust Assets to the Titling Trust or (B) the Servicer’s servicing obligations with regard to one or more
Pools) or (iii) the mutual written determination of the parties hereto (completely or in any part as set forth in clause (ii) above). Upon any termination of the Servicer’s servicing obligations hereunder with regard to any Pool, upon
payment of all amounts due to the Servicer hereunder with respect to such Pool (including related accrued Servicing Fees (to the extent payable from Trust Assets) and additional servicing compensation payable in respect of such Pool and
reimbursement of any advances), the Servicer shall pay to or upon the order of the Titling Trust or any other Person entitled thereto all monies held by the Servicer on behalf of the Titling Trust or the Owner Trustee with respect to such Pool. Any
termination of the Servicer with respect to one Pool shall not thereby effect a termination of the Servicer with respect to any other Pool in existence at the time of such termination. 

  
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 (b) If the rights of the Servicer are terminated hereunder with regard to any Pool, the Servicer
shall, upon demand of the Titling Trust , deliver to the Titling Trust or the applicable Successor Servicer copies of all books and records necessary for the servicing of the related Lease Agreements and Leased Vehicles, all monies collected by it
and required to be deposited in any Trust Account or other account relating to the Pool (including the transfer of applicable Security Deposits being held by the Servicer), and any related Leased Vehicle in its possession that has been repossessed
or recovered and is part of Matured Vehicle Inventory and in either case has not yet been sold or otherwise disposed of pursuant to this Agreement. In addition, the Servicer shall use commercially reasonable efforts to effect the orderly and
efficient transfer of the servicing of the applicable Lease Agreements to the Successor Servicer. As promptly as practicable, the Servicer shall provide to the Successor Servicer a current computer tape containing all information required for the
servicing of such Lease Agreements, together with documentation containing any and all information necessary for use of such computer tape. 

SECTION 6.2. Amendment. 

(a) Subject to Section 6.2(b), this Agreement may be amended as it relates to (i) the Lending Facility Pool, by written agreement
among the Titling Trust, the Settlor, the Servicer and the Lender and (ii) any Designated Pool, by one or more Servicing Supplements among the Titling Trust, the Settlor, the Collateral Agent, the Servicer, the related Exchange Noteholder and
any additional Persons required by the related Servicing Supplement; provided, that to the extent an amendment pursuant to clause (i) materially adversely affects the interests of any Exchange Noteholder, the prior written consent of
such Exchange Noteholder must be obtained. A Servicing Supplement may provide, among other things, for further specific servicing obligations with respect to the related Pool. Such Servicing Supplements may permit the termination of this Agreement
insofar as it applies to the related Pool, upon the terms and conditions set forth therein; provided, that no Servicing Supplement shall be effective to authorize or effect the termination of this Agreement insofar as it relates to the
Lending Facility Pool or any other Designated Pool. 

  
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 (b) This Agreement may be amended at any time by the Settlor, the Titling Trust, the Collateral
Agent and the Servicer, without the consent of any Secured Party, (i) to (A) cure any ambiguity, (B) correct or supplement any provision herein that may be inconsistent with any other provision herein, (C) add any provision that
provides additional rights to the Holders or (D) ensure that the Titling Trust is not classified as an association (or a publicly traded partnership) taxable as a corporation for federal income tax purposes, as evidenced by an Opinion of
Counsel; provided, in each case, that such amendment will not, in the good faith judgment of the parties thereto, materially and adversely affect the interest of any Secured Party or (ii) for any other purpose; provided, that an
Opinion of Counsel is delivered to the Owner Trustee and the Collateral Agent to the effect that such amendment or supplement will not materially and adversely affect the interest of any Secured Party. 

SECTION 6.3. GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF NEW
YORK, WITHOUT GIVING EFFECT TO OTHERWISE APPLICABLE PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 

SECTION 6.4. Relationship of this Agreement to Other Titling Trust Documents. Unless the context otherwise requires, this Agreement and
the other Titling Trust Documents shall be interpreted so as to give full effect to all provisions hereof and thereof. In the event of any actual conflict between the provisions of this Agreement and (a) the Titling Trust Agreement, with
respect to the servicing of any Trust Assets, the provisions of this Agreement shall prevail and (b) any Servicing Supplement with respect to the servicing of any Related Trust Assets, the provisions of such Servicing Supplement shall control
with respect to the related Pool. 
 SECTION 6.5. Notices. All demands, notices, directions, requests and communications hereunder
shall be in writing and shall be delivered or mailed by registered or certified first-class United States mail, postage prepaid, hand delivery, prepaid courier service, or facsimile transmission, and addressed in each case as follows: (a) if to
the Servicer, at AmeriCredit Financial Services, Inc., 801 Cherry Street, Suite 3500, Fort Worth, Texas 76102, Attention: Chief Financial Officer, (b) if to the Titling Trust, in care of Wilmington Trust Company, Rodney Square North, 1100 North
Market Street, Wilmington, Delaware 19890-0001 Attention: Corporate Trust Administration; Facsimile: (302) 636-4140, with a copy to the Servicer and the Settlor, (c) if to the Settlor, in care of
Wilmington Trust Company, 1100 North Market Street, Wilmington, Delaware 19890-0001 Attention: Corporate Trust Administration; Facsimile: (302) 636-4140, with a copy to the Servicer, or (d) with respect
to any of the foregoing Persons, at such other address as shall be designated by such Person in a written notice to the other parties hereto. Delivery shall occur only upon receipt or rejected tender of such communication by an officer of the
recipient entitled to receive such notices located at the address or telecopier number of such recipient for notices hereunder. 
 SECTION
6.6. Severability of Provisions. If any one or more of the covenants, agreements, provisions or terms of this Agreement or any Servicing Supplement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions
or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement or such Servicing Supplement, as supplemented or amended, and shall in no way affect the validity or enforceability of the other
covenants, agreements, provisions and terms of this Agreement or any Servicing Supplement. 

  
 31 

 SECTION 6.7. Binding Effect. The provisions of this Agreement shall be binding upon and
inure to the benefit of the parties hereto and their permitted successors and assigns. 
 SECTION 6.8. Table of Contents and
Headings. The Table of Contents and Article and Section headings herein are for convenience of reference only and shall not define or limit any of the terms or provisions hereof. 

SECTION 6.9. Counterparts. This Agreement may be executed in any number of counterparts, each of which so executed and delivered shall
be deemed to be an original, regardless of whether delivered in physical or electronic form, but all of which counterparts shall together constitute but one and the same instrument. 

SECTION 6.10. Further Assurances. Each party shall take such acts, and execute and deliver to any other party such additional documents
or instruments as may be reasonably requested in order to effect the purposes of this Agreement and to better assure and confirm unto the requesting party its rights, powers and remedies hereunder. 

SECTION 6.11. Third-Party Beneficiaries. Each Secured Party, the Administrative Agent and the Collateral Agent shall be third party
beneficiaries of this Agreement. Any Person designated as a third party beneficiary in a Servicing Supplement shall be third-party beneficiaries of this Agreement as supplemented by such Servicing Supplement. Except as otherwise provided in this
Agreement or a Servicing Supplement, no other Person shall have any rights hereunder. 
 SECTION 6.12. No Waiver; Cumulative
Remedies. No failure to exercise and no delay in exercising, on the part of any party hereto, any right, remedy, power or privilege under this Agreement or any Servicing Supplement shall operate as a waiver thereof; nor shall any single or
partial exercise of any right, remedy, power or privilege hereunder preclude any other or further exercise thereof or the exercise of any other right, remedy, power or privilege. The rights, remedies, powers and privileges provided in this Agreement
and any Servicing Supplement are cumulative and not exhaustive of any rights, remedies, powers or privileges provided at law, in equity or otherwise. 

SECTION 6.13. No Petition. Each of the parties hereto covenants and agrees that prior to the date that is one year and one (1) day
after the date on which all obligations under each Transaction have been paid in full, it will not institute against, or join any other Person in instituting against the Titling Trust or the Settlor any bankruptcy, reorganization, arrangement,
insolvency or liquidation Proceeding or other Proceeding under any Insolvency Law. This Section shall survive the complete or partial termination of this Agreement or the complete or partial resignation or removal of the Servicer. 

SECTION 6.14. Series Liabilities. It is expressly understood and agreed by the Servicer, and all persons claiming through the Servicer,
that the Trust Assets that are allocated to the Lending Facility Pool are intended to support only the Lending Facility and that the Trust Assets that are allocated to each Designated Pool are intended to support only the related Exchange Note and
that the related Secured Parties have expressly agreed to such allocations in the Credit and Security Agreement and the respective Exchange Note Supplements. As such, separate and distinct records shall be maintained by the Servicer for the Lending
Facility Pool and each Designated Pool and the Trust Assets associated with the Lending Facility Pool and each Designated Pool shall be held and accounted for separately from any other assets of the Titling Trust. The debts, liabilities, obligations
and expenses incurred, contracted for or otherwise existing with respect to the Lending Facility and each Exchange Note shall be enforceable against the Lending Facility Pool or the related Designated Pool only, and not against the Trust Assets
generally or the assets of any other Designated Pool. 

  
 32 

 SECTION 6.15. Termination of Like Kind Exchanges. If AmeriCredit is terminated as Servicer
for any reason under this Agreement, the provisions hereof relating to the reallocation of Leased Vehicles pursuant to Like Kind Exchanges shall be of no further force or effect and the Successor Servicer shall not be permitted to effect any such
Like Kind Exchanges. 
 SECTION 6.16. Limitation of Liability. 

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

 (b) Notwithstanding anything contained herein to the contrary, this Agreement has been executed and delivered by Wells Fargo Bank,
National Association, not in its individual capacity but solely as Collateral Agent for the benefit of the Secured Parties and in no event shall Wells Fargo Bank, National Association, have any liability for the representations, warranties,
covenants, agreements or other obligations of the Titling Trust or APGO hereunder or in any of the certificates, notices or agreements delivered pursuant hereto, as to all of which recourse shall be had solely to the assets of the Issuer. 

  
 33 

 SECTION 6.17. Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties hereto
hereby irrevocably and unconditionally: 
 (a) submits for itself and its property in any legal action relating to this Agreement, the Basic
Documents or any other documents executed and delivered in connection herewith, or for recognition and enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the courts of the State of New York, the courts of the
United States of America for the Southern District of New York and appellate courts from any thereof; 
 (b) consents that any such action
may be brought in such courts and waives any objection that it may now or hereafter have to the venue of such action in any such court or that such action was brought in an inconvenient court and agrees not to plead or claim the same; and 

(c) waives, to the fullest extent permitted by law, any and all right to trial by jury in any legal proceeding arising out of or relating to
this Agreement, the Basic Documents or the transactions contemplated hereby. 
 SECTION 6.18. No Partnership or Joint Venture.
Nothing contained in this Agreement (a) shall constitute the Servicer and any of the Titling Trust, the Administrative Agent, the Collateral Agent or the Owner Trustee as members of any partnership, joint venture, association, syndicate,
unincorporated business or other separate entity, (b) shall be construed to impose any liability as such on any of them or (c) shall be deemed to confer on any of them any express, implied or apparent authority to incur any obligation or
liability on behalf of the others. 
 [Remainder of Page Intentionally Left Blank] 

  
 34 

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

			
	 ACAR LEASING LTD.,

    As Titling Trust

		
	By:	 	 WILMINGTON TRUST COMPANY,
 not in its individual
capacity, but solely as Owner Trustee

		
	By:	 	     /s/ Clarice Wright

		 	Name: Clarice Wright
		 	Title: Assistant Vice President
	
	 AMERICREDIT FINANCIAL SERVICES, INC.,

    as Servicer

		
	By:	 	     /s/ Sheli Fitzgerald

		 	Name: Sheli Fitzgerald
		 	Title: Senior Vice President, Corporate Treasury
	
	 APGO TRUST,

    as Settlor

		
	By:	 	WILMINGTON TRUST COMPANY,
		 	not in its individual capacity but solely as Owner Trustee
		
	By:	 	     /s/ Clarice Wright

		 	Name: Clarice Wright
		 	Title: Assistant Vice President
	
	WELLS FARGO BANK, NATIONAL ASSOCIATION, not in its individual capacity but solely as Collateral Agent
		
	By:	 	     /s/ Cheryl Zimmerman

		 	Name: Cheryl Zimmerman
		 	Title: Vice President

 [Signature Page to the Third Amended and Restated Servicing Agreement] 

 EXHIBIT A 

POWER OF ATTORNEY 
  

							
	STATE OF DELAWARE	  	 )
	  		  	
		  	 )
	  		  	
	COUNTY OF NEW CASTLE	  	 )
	  		  	

 KNOW ALL MEN BY THESE PRESENTS, that ACAR Leasing Ltd., a Delaware statutory trust (the
“Trust”), does hereby make, constitute and appoint AmeriCredit Financial Services, Inc., and its agents, employees and attorneys, as Attorneys-in-Fact,
with full power of substitution, to execute, deliver and file on behalf of the Trust all such documents, reports, filings, instruments, certificates and opinions and to apply for and obtain all licenses, qualifications to do business and other
approvals as may be necessary or appropriate to qualify the Trust in accordance with applicable law to acquire, lease and dispose of motor vehicles in any jurisdiction, to initiate, defend, submit to arbitration, commence or settle legal actions
related to leases and the motor vehicles leased thereunder and to engage in any related activities, including, without limitation, to appear for and represent the Trust in connection with such activity, and with full power to perform any and all
acts associated with such activity that the Trust could perform. 
 EXECUTED this         th
day of                     , 20        . 

 

			
	ACAR LEASING LTD.
		
	By:	 	WILMINGTON TRUST COMPANY, not in its individual capacity but solely as Owner Trustee, Administrative Trustee and Delaware Trustee
		
	By:	 	  

		 	Name:
		 	Title:

 Before me, the undersigned authority, on this day personally appeared
                    , known to me to be the person whose name is subscribed to the foregoing instrument, and acknowledged to me that he/she
signed the same for the purposes and considerations therein expressed. 
 Sworn to before me this         th
day of                     , 20        . 

Notary Public -State of
                                 

  
 A-1Exhibit

Exhibit 10.1

NATURAL GAS ASSET MANAGEMENT AGREEMENT
 
BETWEEN
 
ROANOKE GAS COMPANY
 
AND
 
SEQUENT ENERGY MANAGEMENT, L.P.

NATURAL GAS ASSET MANAGEMENT AGREEMENT 
PREAMBLE

This Natural Gas Asset Management Agreement (the "Agreement") is made and entered into effective as of April 1, 2018, (the "Effective Date") by and between Roanoke Gas Company ("Counterparty"), a Virginia corporation, and Sequent Energy Management, L.P. ("Manager"), a Georgia limited partnership.  Counterparty and Manager are sometimes hereinafter referred to collectively as the “Parties” and singularly as a “Party”.

WHEREAS, Counterparty has certain Firm natural gas transportation and storage rights and gas supply inventories as listed in Exhibit A and utilizes such transportation, storage rights and gas supply inventories (hereafter referred to collectively as the “Asset Portfolio”) to provide a secure and reliable source of natural gas supply available for delivery to Counterparty to serve its firm customers;

WHEREAS, Counterparty’s need to utilize the Asset Portfolio to serve its customers varies on a monthly, daily, and seasonal basis depending on a variety of factors;

WHEREAS, Counterparty desires to optimize the use of such Asset Portfolio;

WHEREAS, Counterparty has chosen Manager to assist Counterparty in optimizing the use of such Asset Portfolio by arranging for provision of Counterparty’s gas supply requirements while having the right to otherwise use and maximize the Asset Portfolio when not required to meet Counterparty’s needs, and

WHEREAS, in order to accomplish the results described above, Manager is prepared to provide to Counterparty services substantially the same as those embedded in such Asset Portfolio; 

NOW, THEREFORE, in consideration of the mutual covenants and obligations contained in this Agreement, Counterparty and Manager agree as follows:

ARTICLE I 
DEFINITIONS 
1.01 Defined Terms
The terms set forth below shall have the meaning ascribed to them below.  Other terms are also defined elsewhere in this Agreement, and shall have the meanings ascribed to them therein.

“Agreement” shall mean this document and all attachments and exhibits hereto, as each of the same may be amended from time to time.
    
“Asset Manager” or “Manager” shall mean Sequent Energy Management, L.P.

“Asset Portfolio” shall have the meaning set forth in the Preamble of this Agreement.

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“Bankruptcy Default” shall mean, with respect to either Party, such Party (or its Guarantor, if applicable) (i) makes an assignment or any general arrangement for the benefit of creditors; (ii) files a petition or otherwise commences, authorizes, or acquiesces in the commencement of a bankruptcy proceeding against it; (iii) otherwise becomes bankrupt or insolvent (however evidenced); or (iv) becomes unable to pay its debts as they fall due.

“Baseload Gas” shall mean a Firm, fixed volume of Gas which Counterparty commits to purchase each Day of a given Month, and which Manager commits to deliver and sell at a price calculated according to the methodology set forth in Article IV and as shown in Exhibit G.

“Best Efforts” shall mean a Party’s commercially reasonable, diligent efforts.

“British Thermal Unit (Btu)” shall mean the amount of heat required to raise the temperature of one (1) pound of pure water one (1) degree Fahrenheit at sixty (60) degrees Fahrenheit measured on a dry basis at fourteen and seventy-three hundredths (14.73) pounds per square inch absolute (psia). For reporting purposes, Btu conversion factors of not less than three (3) decimal places shall be used.

“Business Day” shall mean a calendar day on which both Parties are open for business.

“Capacity Release” shall mean those contract rights released to Manager, as specifically set forth in Section 2.01 of this Agreement, and for which Manager is designated agent, as provided in Section 3.01.

"Central Clock Time" and "CCT" shall mean Central Daylight Time when daylight savings time is in effect and Central Standard Time when daylight savings time is not in effect.

“Contract Year” shall mean each twelve-month period from April 1st to March 31st during the Term (including any renewal term as described in Section 9.01).

“Counterparty City Gate” or “City Gate” shall mean any interconnection between the facilities of a Transporter and the facilities of Counterparty.

“Counterparty Storage Account” shall mean the account created by Manager, pursuant to Section 4.02, to record the initial Gas inventory assigned by agency agreement to Manager by Counterparty and all subsequent SVIVS and SVWVS.

“Counterparty Storage Volume” shall mean the total storage volume contractual rights of the Counterparty under the Storage Agreements. 

“Day” or “Gas Day” shall mean a period of twenty-four (24) consecutive hours beginning and ending at nine o'clock (9:00) a.m. CCT, or such other time as may be specified in the applicable Transporter's Tariff.

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“Delivery Point(s)” shall mean any point or points on a Transporter's pipeline system at which Counterparty has the right to receive Gas at the Citygates or at a Storage Facility, such point or points to be designated by Counterparty from time to time pursuant to the nomination process.

“DTH means dekatherm, which is equivalent to an MMBtu.

“Effective Date” shall mean the Day on which this Agreement becomes effective, as set forth in the Preamble of this Agreement.

 “FERC” shall mean the Federal Energy Regulatory Commission or any successor regulatory agency or body which has authority to regulate the rates and/or the services of the Parties.

“Firm” means that either Party may only interrupt its performance to the extent caused by an applicable Force Majeure event or the non-performance of the other Party.

“Force Majeure”, as employed within this Agreement, shall mean acts of God, including epidemics, landslides, lightning, earthquakes, hurricanes, storms, fires, floods, washouts and other similar unusual and severe natural calamities; acts of the public enemy, wars, blockades, insurrections, riots, civil disturbances, arrests and any laws, orders, rules, regulations, acts, restraints of any government or governmental body or authority, civil or military, which have the effect of prohibiting or substantially impairing performance of a Party's obligations hereunder; strikes, lockouts, or other labor disturbances; explosions, breakage or accidents to wells, machinery or lines of pipe; the necessity for making non-routine repairs or alterations to machinery or lines of pipe, freezing of lines of pipe; inability to obtain materials, supplies, permits, or labor to perform or comply with any obligation or condition of this Agreement; the unavailability, interruption or curtailment of services provided by a Service Provider under any of the contract rights released to Manager pursuant to this Agreement or under any other contract for Firm transportation or storage service engaged by Manager for delivery of Gas to Counterparty.  Force Majeure shall not include the unavailability of capacity under any released contract to the extent the unavailability is the result of Manager utilizing the capacity to deliver Gas to a third party, the inability to inject or to withdraw Gas to the extent such inability is the result of the actual storage inventory under such Storage Agreements being inadequate for such purposes as a result of acts or omissions by Manager, or any other cause, whether of the kind herein enumerated or otherwise, not within the control of the Party claiming suspension and which by the exercise of due diligence such Party is unable to prevent or overcome. Force Majeure shall also not include: (1) failure or loss of Counterparty's market(s), (2) the inability of Manager to perform its obligations at a profit, (3) any unanticipated increases in Manager's cost of Gas, or (4) the loss of any particular source of supply, unless caused by an event of Force Majeure affecting a geographic region.

“Gas” or “Natural Gas” shall mean any mixture of hydrocarbons or of hydrocarbons and non-combustible gases, in a gaseous state, consisting essentially of methane, which is of pipeline quality.

“Initial Storage Inventory” shall mean and have the definition as provided in Section 4.02(d).

 “Intra-Day Gas” shall mean that volume of Gas which Counterparty may request for delivery during any particular Gas delivery Day after 8:00 a.m. CCT on the last Business Day prior to the Day(s) 

3

of Gas flow.  If the Parties agree to a quantity of Intra-Day Gas, the obligations of the Parties shall be Firm.  The price for Intra-Day Gas shall be a negotiated price based on then-current market prices.

“MMBtu” shall mean one million (1,000,000) British Thermal Units.

“Month” shall mean a period beginning at nine o'clock (9:00) a.m. CCT, on the first Day of a calendar month and shall end at the aforesaid time on the first Day of the next succeeding calendar month, or such other period as may be agreed to by the Parties.

“Physical Storage Balance” shall mean the actual DTH balance of the aggregated pipeline Storage Agreements.

“Service Provider(s)” shall mean either a Storage Provider or a Transporter, or both, individually or collectively, as the context requires.

 “Storage Agreements” shall mean those agreements for storage services as listed in Exhibit A.

“Storage Virtual Injection Volumes” or “SVIVS” shall mean volumes of Baseload Gas which Manager is deemed to inject into Counterparty's Storage Accounts. SVIVS are reported volumes of Gas owed by Manager to Counterparty as set forth in Section 4.02(d) of this Agreement.

“Storage Virtual Withdrawal Volumes” or “SVWVS” shall mean volumes of Baseload Gas to be delivered to and received by Counterparty on a Firm basis and deemed withdrawn from the reported volumes of Gas held in Counterparty Storage Accounts pursuant to Section 4.02 (c).

“Storage Facilities” shall mean, collectively, the storage facilities covered by the Storage Agreements.

“Storage Provider” means any provider of storage services, including, but not limited to, a provider of storage services under the Storage Agreements.

“Storage Reserve” shall be the logical (contractual) position in the Counterparty Storage Account on April 1 of each year.

“Summer Refill Quantity” shall have the meaning set forth in Section 4.02(d).

“Swing Gas” shall mean a quantity of Gas (either positive or negative) which Counterparty may nominate for delivery no later than 8:00 a.m. CCT on the last Business Day prior to the day(s) of Gas flow.  Upon a proper nomination, the Parties’ obligations to deliver and receive Swing Gas shall be Firm, and Manager shall commit to deliver and receive Swing Gas at a price using the methodology set forth in Article IV and as shown in Exhibit G.

“Tariff” shall mean the applicable FERC approved tariff of any Service Provider or the applicable Public Service Commission approved tariff of Counterparty.

4

“Term” shall have the meaning set forth in Section 9.01. 

“Transporter” shall mean any pipeline transporter of Natural Gas.

“Utilization Fee” means the payment from Manager to Counterparty pursuant to Section 7.03.

“Unit of Measurement” means one million (1,000,000) British Thermal Units (MMBtus) on a dry basis.

“Weighted Average Storage Variable Costs” shall mean those costs identified on Exhibit H as variable cost components of storage injections and withdrawals.

“Weighted Average Transportation Variable Costs” shall mean the weighted average of all applicable variable pipeline transportation charges and surcharges, including fuel, for each transportation contract released to Manager, assuming full utilization of those assets. An example is set forth on Exhibit F.

“Year” shall mean a period of three hundred sixty-five (365) consecutive calendar days provided, however, that any such year that contains a date of February 29th shall consist of three hundred sixty-six (366) consecutive calendar days.

ARTICLE II
RELEASE OF CONTRACTUAL CAPACITY
2.01 Capacity Release

It is the Parties’ intent that this Agreement qualifies as an “asset management arrangement” as defined in the Federal Energy Regulatory Commission’s (“FERC”) Order No. 712 and its regulations, as amended, set out in 18 CFR §284.8 (“Order No. 712”).  Counterparty shall release to Manager the portion of Counterparty's right, title and interest in and to those contracts and agreements for Firm transportation and storage transportation capacity listed in Exhibit A and identified as “Transportation Released to Asset Manager,” and any and all amendments or modifications thereto.  Such releases will be in the form of non-biddable, pre-arranged releases and will be made in a manner consistent with (a) FERC’s capacity release regulations, and (b) applicable Tariffs.  Counterparty’s LNG facility at Daleville, VA shall be used solely by Counterparty and is not included in the Asset Portfolio under this Agreement to be managed by Manager. The releases are on more than one pipeline and are intended to represent, in so far as operationally feasible, all of Counterparty's transportation and storage transportation assets.  

Counterparty shall not enter, terminate or materially modify or amend any contract or agreement that is included in the Asset Portfolio without prior consultation with Manager.  Manager understands that Counterparty shall continue to monitor its load patterns and forecasts during the Term. To the extent Counterparty determines that it needs to enter into a new contract or agreement, that it needs to remove, terminate or modify an existing contract or agreement, or if any other material change in the Asset Portfolio occurs, and such addition, removal, termination or change results in altered 

5

rights to deliver or store Gas, the Parties will use good faith efforts to negotiate any appropriate and comparable adjustments hereto, including, without limitation, prospective adjustments to the Utilization Fee. If the Parties are unable to reach agreement, the appropriate adjustments shall be submitted to arbitration pursuant to Article XVI. 

2.02 Term of Capacity Release

The Capacity Release shall be accomplished in a manner that shall provide Manager with the appropriate capacity for the Term of this Agreement (including any renewal term as described in Section 9.01).  The Capacity Releases described in this Article II will be posted by Counterparty as zero demand rate releases or, if the Transporter’s electronic bulletin board will not accept a zero value, then the smallest value that will be accepted.   The releases may be revoked pursuant to Article IX if there is a material breach or early termination of this Agreement.  Upon revocation, Counterparty reassumes all rights and obligations that had been released to Manager.

2.03 Responsibility for Payment of Charges

		
	(a)
	During the term of the Capacity Release, Counterparty shall retain responsibility for one hundred percent (100%) of the aggregate total of the reservation charges, reservation surcharges and other fixed charges (including, but not limited to Gas Research Institute (GRI) surcharges, if any), attributable to the Asset Portfolio.  All amounts so paid by Counterparty during the term of the Capacity Release shall be paid in accordance with the various applicable payment terms and provisions of the contracts released and applicable Tariffs.  To the extent that any such fixed charges are invoiced to and paid by Manager, Counterparty shall promptly reimburse Manager for such amounts.

		
	(b) 
	During the term of the Capacity Release, Manager shall pay to each Transporter, as applicable, all variable costs, including, without limitation, commodity charges, gathering and offshore charges, fuel adjustments, overrun charges, and any other applicable variable charges and penalties attributable to the Asset Portfolio.  All amounts so paid by Manager during the term of the Capacity Release shall be paid in accordance with the various applicable payment terms and provisions of the contracts released and applicable Tariffs.  

		
	(c)
	With respect to the Capacity Release assets, Manager shall pay directly to Counterparty all pipeline refunds or credits received by Manager, if any, (1) for periods prior to April 1, 2018, (2) for reservation charges and surcharges through the term of this Agreement, and (3) refunds or credits for commodity charges and surcharges which are related to shipments of Gas received by Counterparty during the term of this Agreement. 

6

ARTICLE III
STORAGE INVENTORY AGENCY DESIGNATION
3.01 Storage Inventory
Counterparty shall designate Manager as agent for its storage capacity and all gas balances in storage as of March 31, 2018.  The inventory of Gas in each Storage Facility is listed in Exhibit C.  Manager shall provide agency service and provide for utilization of storage assets as set forth in paragraph 4.02. 

3.02 Term of Agency Appointment

Manager is hereby appointed agent for the management of the Storage Agreements for the Term of this Agreement (including any renewal term as described in Section 9.01).  The agency appointment may be revoked pursuant to Article IX if there is a material breach or early termination of this Agreement.  Upon revocation, Counterparty reassumes management of all rights and obligations that relate to the Storage Agreements.

3.03 Responsibility for Payment of Charges

		
	(a)
	During the term of this Agreement, Counterparty shall pay to each Service Provider, as applicable, all fixed amounts due and payable under the Storage Agreements including, without limitation, reservation charges and surcharges.  All amounts so paid by Counterparty during the term of this Agreement shall be paid in accordance with various applicable payment terms and provisions of the Storage Agreements and applicable Tariffs.  

		
	(b) 
	During the term of the Capacity Release, Manager shall pay to each Service Provider, as applicable, all variable costs, including, without limitation, commodity charges, injection/withdrawal charges, fuel adjustments, overrun charges, and any other applicable variable charges and penalties attributable to the Storage Agreements.  All amounts so paid by Manager during the term of the Capacity Release shall be paid in accordance with the various applicable payment terms and provisions of the contracts released and applicable Tariffs.

		
	(c)
	With respect to the Storage Facilities, Manager shall pay directly to Counterparty all pipeline refunds or credits received by Manager (1) for periods prior to April 1, 2018, (2) for reservation charges and surcharges through the term of this Agreement, and (3) refunds or credits for commodity charges and surcharges which are related to shipments of Gas received by Counterparty during the term of this Agreement.

ARTICLE IV
FIRM SALES SERVICES AND PRICING
4.01 Firm Sales Service
		
	(a)
	Manager shall provide Firm Gas sales service to Counterparty at the Counterparty receipt points on the applicable Transporter up to the volume and reliability of transportation 

7

capacity released to Manager, as provided in this Agreement.  Subject to this supply obligation and the constraints of the relevant Tariffs, Manager shall have the right to manage the released assets in any manner it chooses.  Gas sold to Counterparty shall be priced at a single delivered price for Baseload Gas, a single delivered price for Swing Gas, and a single delivered price for Intra-Day Gas.  The price for Baseload Gas shall be determined monthly; the price for Swing Gas shall be determined daily, and the price for Intra-Day Gas shall be determined at the applicable day and hour of an Intra-Day request.  The price for Baseload Gas shall be determined by adding (1) the Baseload Gas Commodity Charge and (2) the Weighted Average Transportation Variable Costs and Weighted Average Transportation Fuel Costs as shown on Exhibit G for the Baseload Gas Price Calculation.  The price for positive Swing Gas shall be determined by adding the Swing Gas Commodity Charge and (2) the Weighted Average Transportation Variable Costs and Weighted Average Transportation Fuel Costs as shown on Exhibit G for the Swing Gas Price Calculation.  If Swing Gas is negative the credit price for Swing Gas shall be determined by adding (1) the Weighted Average Transportation Variable Costs and the Weighted Average Transportation Fuel Costs for Baseload Gas as shown on Exhibit G to (2) the Swing Gas Commodity Charge, and (3) subtracting $0.03.  For Baseload Gas, the Baseload Gas Commodity Charge shall be the weighted average of the first-of-month indices for Base-load Pricing as allocated on Exhibit B.  For Swing Gas, the Swing Gas Commodity Charge shall be the weighted average of the daily indices for Swing Pricing as allocated on Exhibit B.  An example of Baseload Gas and Swing Gas price calculations are attached as Exhibit G.  Any requirements for intra day shall be priced at market determined at the applicable day and hour of an Intra-Day request.  If there is no single price published for one of the locations specified in Exhibit B on a particular Day, then the Manager and Counterparty shall promptly negotiate a price that most fairly represents then current market conditions. In addition, if: (i) an index included in Exhibit B or otherwise used in this Agreement is no longer published, or (ii) a new index is published that is more representative than the existing index of (more proximate to) the pricing points (“New Index”), then either Party may provide written notice of such event to the other Party and the Parties shall then negotiate in good faith to agree upon the appropriate replacement index in the case of (i), or whether to utilize the New Index in the case of (ii), for this Agreement.  If the Parties are unable to mutually agree upon the applicable index for this Agreement within five (5) Business Days after the other Party’s receipt of such notice, then at the written election of either Party, this Agreement will terminate within thirty (30) Business Days after such election.

		
	(b)
	With respect to Gas delivered off of Columbia Gas Transmission (“TCO”), to the extent Counterparty fails to take nominated Gas or takes Gas in excess of its nominated volume and such amounts are within the greater of (i) 7,000 MMBtu of the nominated amount for the applicable Day of delivery or (ii) the applicable Transporter storage ratchets (the "Daily Balancing Tolerance"), the following shall apply:

Manager shall allow a daily variance of 7,000 dekatherms (DTH) +/- from scheduled volumes off TCO, unless the variance is over the maximum daily quantity (MDQ) or over the maximum daily injection quantity (MDIQ).  For quantities within this tolerance, Counterparty shall be subject to the following “cash out” schedule:

8

	
		
	

Balancing Situation within Daily Balancing Tolerance

	

Pricing

	Undertakes by Counterparty
	Lesser of
GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day of )
MINUS three cents (-$0.03)
Or
GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day after)
MINUS three cents (-$0.03)

	Overtakes by Counterparty
	Greater of
GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day of )
PLUS three cents (+$0.03) plus variables and fuel to Citygate
Or
GAS DAILY MIDPOINT Columbia Gas Appalachian (for the day after)
PLUS three cents (+$0.03) plus variables and fuel to Citygate

For quantities in excess of the agreed to Daily Balancing Tolerance and still within pipeline contracts and not on days of pipeline restrictions, Counterparty shall be subject to the following “cash out” schedule: 

	
		
	

Balancing Situation outside Daily Balancing Tolerance

	

Pricing

	Undertakes by Counterparty
	Lesser of
GAS DAILY ABSOLUTE LOW Columbia Gas Appalachian (for the day of )
MINUS three cents (-$0.03)
Or
GAS DAILY ABSOLUTE LOW Columbia Gas Appalachian (for the day after)
MINUS three cents (-$0.03)

	Overtakes by Counterparty
	Greater of
GAS DAILY ABSOLUTE HIGH Columbia Gas Appalachian (for the day of )
PLUS three cents (+$0.03) plus variables and fuel to Citygate
Or
GAS DAILY ABSOLUTE HIGH Columbia Gas Appalachian (for the day after)
PLUS three cents (+$0.03) plus variables and fuel to Citygate

Manager shall provide Counterparty with a report detailing the balancing conducted pursuant to this Section by e-mail or facsimile upon request by the Counterparty.  Such report shall be substantially in the form of Exhibit J.

Any TCO balancing in excess of the daily tolerances listed in the sections above will be a negotiated price between the Manager and Counterparty.

		
	(c)
	Counterparty shall maintain control of the East Tennessee OBA and the responsibility for daily and monthly balancing of the East Tennessee OBA agreement.  Any cash-out, variances and/or penalties at the East Tennessee OBA shall be the responsibility of the Counterparty, unless attributable to the Manager’s failure to adhere to the Operational Requirements set forth in Exhibit D.

9

		
	(d)
	The Parties understand that component rates and pipeline charges shall change from time to time and that Exhibit F and Exhibit H are representative only.  In the event the projected daily forecast pursuant to Section 5.05 exceeds the Firm capacity available under the Capacity Release, Counterparty and Manager shall work together to review alternatives that may include additional Firm Gas sales service to Counterparty.  In the event that a Transporter determines that Counterparty's volume entitlements at particular points are different than those shown in Exhibit A, Manager and Counterparty shall mutually agree on an alternate pricing mechanism.  The Parties may, upon mutual agreement, agree to fix the Gas prices under this Agreement, subject to the terms of the Trigger Price Addendum attached hereto as Exhibit L.

4.02 Utilization of Storage Assets

		
	(a)
	Manager shall maintain two (2) accounts for each Storage Facility, one the “Counterparty Storage Account” and the other the “Physical Storage Balance.”  The Counterparty Storage Account shall record the initial Gas inventory assigned by agency agreement to Manager and all subsequent SVIVS and SVWVS as set forth in subsections (c) and (d) hereof.  Manager shall manage the withdrawal and injections of Counterparty’s storage assets.  

Storage injections (SVIVS) and withdrawals (SVWVS) are understood by the Parties to be paper transactions that may differ from the actual physical volumes held in storage at any point in time.  Manager has the right, subject to Counterparty's right to receive SVWVS (which volumes may be supplied from other sources) and limitations contained in the Tariffs, to actually inject, withdraw and sell Gas from the Counterparty’s Storage Facilities as it sees fit; provided, however, that Manager complies with the delivery requirements of the Firm Sales Service provided in Section 4.01. 

		
	(b)
	Counterparty shall retain physical ownership of all Gas in storage, and Manager shall be named as agent on Counterparty’s storage contracts.  Manager shall manage Counterparty’s total storage inventory as provided in this Section 4.02.  Title to Gas physically withdrawn from storage will transfer from Counterparty to Manager upon such withdrawal at the interconnection of the Storage Facilities and the Transporter, and Gas physically injected into storage will transfer from Manager to Counterparty upon such injection at the interconnection of the Transporter and the Storage Facilities.  If the inventory level shown in Physical Storage Balances falls below the amount necessary to fill Counterparty's Storage Account to the required level by the first of November without incurring penalties pursuant to Tariff rules for over injection, (“Storage Shortfall”), then Manager shall provide Counterparty with (1) adequate assurances of sufficient primary Firm pipeline transportation capacity to the Counterparty receipt points on the applicable Transporter equal to the Storage Shortfall, and (2) subject to confidentiality restrictions, reasonable financial assurances, in the form of an investment grade credit rating, parent guaranties, firm contracts for the required volumes of Gas, or letters of credit (if Manager does not have an investment grade credit rating) acceptable to Counterparty of its ability to provide Gas supply equal to the Storage Shortfall.  Physical Storage Balance shall not fall to levels that would prohibit the Manager from meeting all operational requirements of Counterparty or that would cause Counterparty to be outside the tariff requirements of Service Providers.  Notwithstanding 

10

the above, the difference between Counterparty’s Storage Account and the Physical Storage Balance shall not exceed twenty-five percent (25%), except without limit, the Physical Storage Balance may exceed the Counterparty's Storage Account.  In the event that the difference between Counterparty’s Storage Account and the Physical Storage Balance does exceed twenty-five percent (25%), Manager shall make necessary physical adjustments with thirty (30) days so as to get the Physical Storage Balance back within twenty-five percent (25%).  Also, at the sole discretion of Counterparty, the Counterparty shall have the right to allow the Manager to exceed or remain outside the tolerance level, if the Manager satisfactorily demonstrates to Counterparty that such exception does not prohibit the Manager from meeting all operational requirements of Counterparty.  

(c)    Storage Withdrawals 

The Counterparty Storage Account shall be established and invoiced (on paper) at a withdrawal level equal to eighty-five percent (85%) of the Counterparty Storage Volume each winter.  Monthly withdrawal percentages are identified in Exhibit D1.  The price for the SVWVS quantity of Baseload Gas delivered to Counterparty each Month will equal the Weighted Average Storage Variable Costs for withdrawals.  The remaining inventory of ten percent (10%) will be reserved and said levels will be in place (on paper) on April 1.  This reserve, hereto referred to as Storage Reserve, shall be a logical (contractual) position in the Counterparty Storage Account.  Manager shall manage all withdrawal levels within the operating guidelines of the pipeline ratchet requirements.  

During the Months of November through March, Manager shall invoice the Counterparty a ratable daily amount of Baseload Gas over the respective month according to the schedule in Exhibit D1, including appropriate storage withdrawal charges as reflected in Exhibit H.  For the initial withdrawal season, the percentages in Exhibit D1 shall be proportionally adjusted to reflect a physical storage volume differing from the Initial Storage Inventory.

(d)    Storage Injections

Counterparty Storage Account levels shall be at ninety-five (95%) by November 1 of each year, and is defined as “Initial Storage Inventory”.  

The “Summer Refill Quantity” shall be defined as eighty-five percent (85.0%) of the Initial Storage Inventory.  Seventy-five percent (75.0%) of the Summer Refill Quantity shall be billed to Counterparty on a ratable monthly basis (1/7) during the period April 1 through October 31, herein referred to as Initial Storage Refill.  Twenty-five percent (25.0%) of the Summer Refill Quantity shall be billed in any one, or number of, summer months but always remaining within the monthly pipeline tariff requirements.  Manager shall notify Counterparty within three (3) business days of the following month of any additional storage quantity to be billed (in excess of the Initial Storage Refill) in that respective month to the Counterparty’s Storage Account.  The prices for each Month's Gas shall be determined by the same method as for Baseload Gas, using the prices set forth in the Inside F.E.R.C. Gas Market Report, plus applicable Weighted Average Storage Variable Costs for injections. 

11

		
	(e)
	Counterparty will at all times hold title to and have the risk of loss for all Gas physically held in the Storage Facilities, regardless of whether such physical volume is greater than or less than the Counterparty Storage Account.  In the event of loss of physical Gas in the Storage Facilities for any reason other than the fault of Manager, Counterparty will indemnify and hold Manager harmless for the difference between the Physical Storage Balance and any lesser Counterparty Storage Account, and Manager will indemnify and hold Counterparty harmless for the difference between the Counterparty Storage Account and any lesser Physical Storage Balance. 

ARTICLE V
MANAGEMENT OF CAPACITY RELEASE AGREEMENTS AND EQUIVALENT
NATURE OF SERVICES
5.01 Compliance with Agreements
Manager and Counterparty shall comply with all terms and provisions of the agreements comprising the Asset Portfolio and all pertinent statutes, rules, orders, Tariffs and regulations with respect thereto.  For purposes of this Agreement, Manager's rights under the Capacity Release shall include, without limitation, the injection of Gas into the Storage Facilities, the withdrawal of Gas from the Storage Facilities, the transportation of Gas to and from all applicable receipt and delivery points subject to the Capacity Release, and any other use which Manager sees fit, provided such use is allowable under the applicable statutes, rules, Tariffs, orders and regulations.

5.02 Indemnifications

Subject to Section 15.05 of this Agreement and except as provided in Section 4.02(e), Manager shall indemnify Counterparty and hold Counterparty harmless from all liability and expense on account of Manager's use of rights released under the Capacity Release, including, without limitation, any violation or breach by Manager of the agreements released, applicable Tariffs or pertinent statutes, rules, orders and regulations, to the extent that such liability or expense is not the result of Counterparty negligence or willful misconduct.

5.03 Management

Manager shall manage the transferred Counterparty Storage Volume and Capacity Release in a prudent manner consistent with all applicable Tariffs and the operational requirements detailed on Exhibit D.

5.04 Quality of Services

12

Manager shall provide Gas delivered to the Counterparty Delivery Points on the applicable Transporters up to the volumes and reliability of deliveries that Counterparty would have received had these agreements not been released to Manager, subject to the terms of this Agreement and constraints of applicable Transporter tariffs. In the event a Service Provider(s) makes any changes to its Tariff or to its operating practices, including changes to the Manager’s ability to segment capacity or to utilize secondary firm transportation, that is binding on Manager or Counterparty and such changes materially and adversely affects such Party’s ability to perform its obligations hereunder, either Party may provide written notice of such event to the other Party and the Parties shall negotiate in good faith an amendment to this Agreement or other appropriate action the effect of which is to restore each party, as closely as possible, to its same position as prior to such change. If the parties are unable to mutually agree upon such an applicable amendment to this Agreement or other appropriate action within the earlier to occur of (i) ten (10) Business Days after the other party’s receipt of such notice from the Noticing Party, and (ii) five (5) Business Days after the other party’s receipt of such notice from the Noticing Party if implementation of such change has taken effect, then at the written election of either Party, this Agreement will terminate within thirty (30) Business Days after such election.

5.05 Nominations

Counterparty shall provide to Manager the daily usage forecasts for each upcoming Day, Month and/or season, as applicable by 7:30 am CCT on the previous Day, consistent with the applicable nomination deadlines.  The nomination deadline for Baseload Gas is set forth in Exhibit E, and the nomination deadlines for Swing Gas and Intra-Day Gas are set forth in Exhibit E. The Parties acknowledge that FERC continues to promote the coordination of the gas and electric industries through the promulgation of regulations, the development of standards by North American Energy Standards Board, Inc., and the issuance of pipeline tariff compliance orders which may include, but are not limited to, the addition of nomination cycles, changes in the nomination timelines, and other scheduling and confirmation procedures.   In the event that any such changes materially impact any provision of this Agreement, the Parties shall negotiate appropriate amendments to the nomination deadlines in Exhibit E and other appropriate provisions hereof in order to conform to such changes. 

Based on the Counterparty forecasts, Manager shall prioritize, make and confirm all supply contract and pipeline nominations required to effect the delivery of Gas to the applicable Delivery Point(s).  All nominations shall be made by verbal agreement via telephonic means or by electronic mail.  The Parties agree to the following procedures in the event the Parties reach verbal agreement regarding the nomination of Gas by Counterparty.  Any oral agreement shall be binding unless superseded by a written confirmation, which may be in the form of a telephonic facsimile transmission (“Fax”).  The telephones of the Parties may be monitored by recording equipment.  The Parties hereby consent to such recordings and any such recordings shall serve as the best evidence of any oral agreement.  Upon request by either party, Counterparty and/or Manager shall send a written confirmation to the other generally in the form of Exhibit K, by Fax or other electronic transmission, reflecting the agreed-upon terms of the particular transaction.  The Parties shall resolve any discrepancies in such confirmations as soon as reasonably possible, so they can agree in writing to a confirmation.

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ARTICLE VI
REPRESENTATIONS AND WARRANTIES
6.01 Representations and Warranties of Manager
As a material inducement to entering into this Agreement, Manager represents and warrants to Counterparty as of the date of the execution and delivery of this Agreement and throughout the Term hereof as follows:

		
	(a)
	There are no suits, proceedings, judgments, rulings or orders by or before any court or any governmental authority to which Manager is a party that materially adversely affect (1) its ability to perform its obligations under this Agreement, or (2) the rights of Counterparty hereunder.

		
	(b)
	Manager is duly organized, validly existing and in good standing under the laws of the State of Georgia, and it has the legal right, power and authority and is qualified to conduct its business, and to execute and deliver this Agreement and perform its obligations under the same, and all regulatory authorizations have been obtained and/or maintained as necessary for it to legally perform its obligations hereunder.

		
	(c)
	The making and performance by Manager of this Agreement is within its powers, has been duly authorized by all necessary action on its part, and does not and shall not violate any provisions of its incorporation or other formation, as applicable, or any other of its governing documents, nor shall the making or performance of this Agreement violate (1) any agreement or instrument to which Manager is a party or is bound, (2) any material provisions of any judgment, decree, or judicial order applicable to Manager, (3) any provision of law or any rule, regulation, or administrative order presently in effect and applicable to Manager or its governing documents.  To the best of Manager's knowledge and belief, no consents of third parties, whether private, judicial or public, are required under any agreement or instrument to which Manager is a party or is bound; provided however, that if, after the execution hereof, any such third party consents are deemed to be necessary in order to effectuate the purposes and intent of this Agreement, then Manager shall use its best efforts to promptly obtain such consents.

		
	(d)
	This Agreement when entered into constitutes a legal, valid and binding act and obligation of Manager, enforceable against it in accordance with its terms, subject to principles of equity and bankruptcy, insolvency, reorganization and other laws affecting creditors' rights generally.

		
	(e)
	There are no bankruptcies, insolvency, reorganization, receivership or other arrangements or proceedings pending or being contemplated by Manager, or to its knowledge, threatened against Manager.

		
	(f)
	It is acting for its own account, has made its own independent decision to enter into this Agreement (including any confirmation accepted in accordance with Section 5.05) and as to whether this Agreement (including any confirmation accepted in 

14

accordance with Section 5.05) is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing, and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement (including any confirmation accepted in accordance with Section 5.05).

		
	(g)
	It is a "forward contract merchant" within the meaning of the United States Bankruptcy Code.

		
	(h)
	It has entered into this Agreement (including each confirmation accepted in accordance with Section 5.05) in connection with the conduct of its business, and it has the capacity or ability to make or take delivery of all Gas referred to herein.

		
	(i)
	The material economic terms of this Agreement (and each confirmation accepted in accordance with Section 5.05) have been subject to individual negotiation by the Parties.

6.02 Representations and Warranties of Counterparty

As a material inducement to entering into this Agreement, Counterparty represents and warrants to Manager as of the date of execution and delivery of this Agreement and throughout the Term hereof as follows:

		
	(a)
	There are no suits, proceedings, judgments, rulings or orders by or before any court or any governmental authority to which Counterparty is a party that materially adversely affect (1) its ability to perform its obligations under this Agreement, or (2) the rights of Manager hereunder.

		
	(b)
	Counterparty is duly organized, validly existing and in good standing under the laws of the Commonwealth of Virginia, and it has the legal right, power and authority and is qualified to conduct its business, and to execute and deliver this Agreement and perform its obligations under the same, and all regulatory authorizations have been obtained and/or maintained as necessary for it to legally perform its obligations hereunder.

		
	(c)
	The making and performance by Counterparty of this Agreement is within its powers, has been duly authorized by all necessary action on its part, and does not and shall not violate any provisions of its incorporation, bylaws or any other of its governing documents, nor shall the making or performance of this Agreement violate (1) any agreement or instrument to which Counterparty is a party or is bound, (2) any material provisions of any judgment, decree or judicial order, statute, rule or regulation applicable to Counterparty, (3) any provision of law or any rule, regulation, or administrative order (including, without limitation, any applicable state or federal Tariffs or service certificates), presently in effect and applicable to Counterparty or its governing documents.  To the best of Counterparty's knowledge and belief, no consents of third parties, whether private, judicial or public, are required under any 

15

agreement or instrument to which Counterparty is a party or is bound; other than consents that may be required from the Service Providers, which consents, to the extent required, Counterparty shall pursue the obtaining of with reasonable diligence from the appropriate parties; provided however, that if, after the execution hereof, any other third party consents are deemed to be necessary in order to effectuate the purposes and intent of this Agreement, then Counterparty shall use its best efforts to promptly obtain such consents.
		
	(d)
	This Agreement when entered into constitutes a legal, valid and binding act and obligation of Counterparty, enforceable against it in accordance with its terms, subject to principles of equity and bankruptcy, insolvency, reorganization and other laws affecting creditors' rights generally.

		
	(e)
	There are no bankruptcies, insolvency, reorganization, receivership or other arrangements or proceedings pending or being contemplated by Counterparty, or to its knowledge, threatened against Counterparty.

		
	(f)
	Counterparty is the contract owner of the contracts listed in Exhibit A; those contracts are in full force and effect, have the termination dated listed in Exhibit A, and Counterparty is not aware of any claims assertable under those contracts by any party to such agreements or otherwise that would materially and adversely affect the performance of Counterparty's obligations thereunder or hereunder or Manager's rights and obligations hereunder.

		
	(g)
	It is acting for its own account, has made its own independent decision to enter into this Agreement (including any confirmation accepted in accordance with Section 5.05) and as to whether this Agreement (including any confirmation accepted in accordance with Section 5.05) is appropriate or proper for it based upon its own judgment, is not relying upon the advice or recommendations of the other Party in so doing, and is capable of assessing the merits of and understanding, and understands and accepts, the terms, conditions and risks of this Agreement (including any confirmation accepted in accordance with Section 5.05).

		
	(h)
	It is a "forward contract merchant" within the meaning of the United States Bankruptcy Code.

		
	(i)
	It has entered into this Agreement (including any confirmation accepted in accordance with Section 5.05) in connection with the conduct of its business and it has the capacity or ability to make or take delivery of all Gas referred to herein.

		
	(j)
	The material economic terms of this Agreement (and each confirmation accepted in accordance with Section 5.05) have been subject to individual negotiation by the Parties.

6.03 Commodity Trade Options
To the extent that any transaction entered into under this this Agreement may constitute a “commodity option transaction” as such term is used in Part 32 of the CFTC regulations, the Parties 

16

agree that such commodity option meets the conditions contained in CFTC Regulation 32.3(a) (“Trade Option”) and:

		
	(a)
	Each Party represents, as of the date on which it enters into any such transaction, that (i) if the Party is the offeree of the Trade Option, it is a producer, processor, or commercial user of, or merchant handling, natural gas, or the products or by-products thereof, and the Trade Option is being offered or entered into solely for purposes related to its business as such, (ii) if the Party is the offeror of the Trade Option, it is either (A) a producer, processor, or commercial user of, or merchant handling, natural gas, or the products or by-products thereof, and the Trade Option is being offered and entered into solely for purposes related to its business as such, or (B) an Eligible Contract Participant as defined in the Commodity Exchange Act and the CFTC regulations thereunder, and (iii) the Trade Option is intended to be physically settled so that, if the Trade Option is exercised, the Trade Option will result in the sale of an exempt commodity for immediate or deferred shipment or delivery.

		
	(b) 
	Each Party also represents that it is not a “swap dealer” or a “major swap participant,” as such terms are defined in the Commodity Exchange Act and the CFTC regulations thereunder.

ARTICLE VII
FEES AND OTHER CONSIDERATION 
7.01 Reimbursement of Refunds
Each Month during the term of this Agreement, Manager shall remit to Counterparty any and all pipeline refunds associated with the Capacity Release as set forth in Sections 2.03(c) and 3.03(c).

7.02 Supporting Documentation

Manager and Counterparty shall cooperate to ensure that each Service Provider timely furnishes Counterparty with copies of the pertinent invoices and statements, along with supporting documentation and calculations, setting forth the amount Counterparty is required to pay to each such Service Provider in accordance with Sections 2.03(a) and 3.03(a).

7.03 Utilization Fee

Each Month during the term hereof, Manager shall pay to Counterparty a Utilization Fee of the sum shown on Exhibit M.   

 
7.04 Preliminary Statement; Invoicing and Payments for Gas

A preliminary statement, based on the best available information, shall be delivered by Manager to the Counterparty for informational purposes by the end of the third business day following each Month during the Term.  Manager shall invoice Counterparty for Gas sold to Counterparty, whether 

17

that Gas is Firm sales service pursuant to Section 4.01 or Summer Refill Quantity pursuant to Section 4.02. Invoices shall be rendered each Month for Gas delivered (or in the case of Summer Refill Quantity, deemed to be delivered) in the preceding Month, and for any other applicable charges (such as injection fees), providing supporting documentation acceptable in industry practice to support the amount charged.  If the actual quantity is not known by the billing date, billing shall be prepared based on the quantity of Gas scheduled to be delivered.  The invoice shall then be adjusted to the actual quantity on the following Month's billing, or as soon thereafter as actual information is available. Counterparty shall remit the invoiced amount on the later of (a) the twenty-fifth (25th ) day of the Month after delivery or (b) ten (10) days after the invoice date.  If the amount of an invoice is disputed in good faith, the Counterparty shall pay the undisputed portion.  Interest on late payments of undisputed amounts shall accrue at the rate of the then effective prime rate of interest published under "Money Rate" by the Wall Street Journal, plus two percent (2%) per annum from the due date until the date of payment.  Payment shall be in immediately available funds to the bank accounts set forth in this Agreement.  The Parties agree to discharge mutual debts and payment obligations due and owing to each other whether arising under this Agreement or any other agreement, but limited to natural gas transactions only, between the Parties through netting.  Therefore, all amounts owed by one Party to the other Party during any given month arising from natural gas transactions shall be netted against the amount owed by the other Party under such transactions.  The Party owing the greater amount shall pay the difference to the other Party and notify the other Party of the amount netted using the invoice and payment procedures described herein.

7.05 Audit

Counterparty and its outside accountants shall have the right, upon reasonable notice and at reasonable times during normal business hours, to enter Manager's offices and inspect and copy Manager's records and books of account, but only to the extent necessary to audit any statement provided to Counterparty by Manager, and to assure that amounts paid or billed to Counterparty are correct in all respects. Manager and its outside accountants shall have the right, upon reasonable notice and at reasonable times during normal business hours, to enter Counterparty's offices and inspect and copy Counterparty's records and books of account, but only to the extent necessary to audit any statement provided to Manager by Counterparty, and to assure that amounts paid or billed to Manager are correct in all respects. Each Party shall bear all the costs of performing its audit. Such right to audit shall be available for the terms of this Agreement and for two (2) years thereafter. All audits shall be on a confidential basis and shall require the execution of a confidentiality agreement prior to commencement.

ARTICLE VIII
FINANCIAL RESPONSIBILITY
8.01 Financial Assurances

Prior to the commencement of performance, or at any time during the term of this Agreement, either Party may require the other to provide financial information reasonably needed to ascertain the 

18

other Party's ability to pay any amounts that may become due from such party under this Agreement or to meet any other obligation which may accrue, including without limitation the obligation to pay damages in the event of failure to perform.  If either Party's creditworthiness becomes unsatisfactory in this regard, then the dissatisfied party (the “Unsecured Party”) may require assurance of the other Party's ability to pay or require different terms of payment.  The Unsecured Party may suspend deliveries or receipts hereunder or terminate this Agreement if, in the sole opinion of the Unsecured Party, the other Party fails to deliver the requested credit information or assurance of its ability to pay within two (2) Business Days of such request.  Such assurance may, at the option of the Unsecured Party, include (i) the required posting of a letter of Credit (acceptable to the Unsecured Party and the issuing bank); (ii) cash prepayments; (iii) corporate guaranty or (iv) other security acceptable to the Unsecured Party.

8.02 Guaranty
Within five (5) Business Days of the execution of this Agreement, Counterparty will provide a parent guaranty (the “Counterparty Guaranty”) to Manager in a form and for an amount reasonable acceptable to Manager from RGC Resources, Inc. (“Counterparty Guarantor”), or other guarantor reasonably acceptable to Manager.  Within five (5) Business Days of the execution of this Agreement, Manager will provide a parent guaranty (the “Manager Guaranty”) to Counterparty in a form and for an amount reasonable acceptable to Counterparty from Southern Company Gas (“Manager Guarantor”), or other guarantor reasonably acceptable to Counterparty.
ARTICLE IX
TERM, DEFAULT, CURE AND TERMINATION
9.01 Term

This Agreement shall be effective as of April 1, 2018 and shall continue through and including March 31, 2021 (the “Term”).  This Agreement may be renewed for twelve (12) months at the end of the Term, when both Parties notify the other in writing at least ninety (90) days before the end of the Term of its intent to renew.  This Agreement shall terminate upon any date on which any federal or state statute, regulation, order or judicial decision renders this Agreement, or the Agreements comprising the Capacity Release, illegal, null or void.  This Agreement may be terminated before the expiration of the Term upon either a Manager Default or a Counterparty Default, as defined herein.  Termination prior to the expiration of the Term shall be effected by a written notice from the terminating Party, stating the reason for the termination, including, if applicable, the failure of the other Party to cure within the applicable period, and the effective date of termination.

9.02 Breach and Remedies

		
	(a)
	Unless such failure is the result of Force Majeure or the failure or negligence of Counterparty, the occurrence of any of the following with respect to Manager or Manager Guarantor shall be deemed a Manager Default:

19

		
	(i)
	The failure of Manager to comply with the material terms and conditions of the applicable Agreements, as disclosed and released to Manager under the Capacity Release;

		
	(ii)
	The failure of Manager to pay any undisputed amounts due to Counterparty or any Service Provider under the Capacity Release and such failure continues for a period of ten (10) days after Manager receives written notice of same;

		
	(iii)
	A Bankruptcy Default with respect to Manager (a “Manager Bankruptcy Default”);

		
	(iv)
	Any material inaccuracy in any representation or warranty of Manager set forth in this Agreement or the Manager Guaranty, and such inaccuracy is not remedied within thirty (30) days of Manager's receipt of a written notice from Counterparty describing the particulars of such inaccuracy in reasonable detail;

		
	(v)
	The failure of Manager to perform any material covenant or obligation in this Agreement or the Manager Guaranty, other than those specified in clauses (i) through (iv) or (vi) through (x), and such failure is not remedied within ten (10) days of Manager's receipt of a written notice from Counterparty describing the particulars of such failure in reasonable detail;

		
	(vi)
	The failure of Manager to provide Firm sales service as provided in Article IV;

		
	(vii)
	The failure of Manager to provide Counterparty with financial information requested pursuant to Section 8.01 or requested collateral pursuant to Section 8.02, in each case, in an amount and form acceptable to Counterparty.

		
	(viii)
	The failure to provide Counterparty with the Manager Guaranty as set forth in Section 8.02 herein.

		
	(ix)
	The failure of the Manager Guaranty to be in full force and effect for purposes of this Agreement (other than in accordance with its terms) prior to the satisfaction of all obligations of Manager without the written consent of Counterparty.

		
	(x)
	The Manager Guarantor repudiates, disaffirms, disclaims or rejects, in whole or in part, or challenges the validity of the Manager Guaranty.

		
	 (b)
	The occurrence of any of the following with respect to Counterparty or the Counterparty Guarantor shall be deemed a Counterparty Default:

		
	(i)
	The failure to pay undisputed amounts due Manager or a Service Provider as set forth herein, and such failure continues for a period of ten (10) days after receipt of written notice of same;

		
	(ii)
	A Bankruptcy Default with respect to Counterparty (a “Counterparty Bankruptcy Default”);

		
	(iii)
	Any material inaccuracy in any representation or warranty set forth in this Agreement or the Counterparty Guaranty, and such inaccuracy is not remedied within thirty (30) days of receipt of a written notice describing the particulars of such inaccuracy in reasonable detail;

20

		
	(iv)
	The failure to perform any material covenant or obligation in this Agreement or Counterparty Guaranty (other than those specified in clauses (i) through (iii) and (v) through (ix)), and such failure is not remedied with ten (10) days of receipt of a written notice from Manager describing the particulars of such failure in reasonable detail; or

		
	(v)
	The failure to obtain, within a reasonable time, the necessary consents from Service Providers specified in Section 6.02 (c).

		
	(vi)
	The failure to provide Manager with financial information requested pursuant to Section 8.01 or requested collateral pursuant to Section 8.02, in each case, in an amount and form acceptable to Manager.

		
	(vii)
	The failure to provide Manager with the Counterparty Guaranty as set forth in Section 8.02 herein.

		
	(viii)
	The failure of the Counterparty Guaranty to be in full force and effect for purposes of this Agreement (other than in accordance with its terms) prior to the satisfaction of all obligations of Counterparty without the written consent of Manager.

		
	(ix)
	The Counterparty Guarantor repudiates, disaffirms, disclaims or rejects, in whole or in part, or challenges the validity of the Counterparty Guaranty.

		
	(c)
	Remedies for Manager Defaults or Counterparty Defaults, as applicable, shall be as follows:

		
	(i)
	For a Manager Bankruptcy Default or a Counterparty Bankruptcy Default, automatic and immediate termination of this Agreement subject to and in accordance with Sections 9.02(d), 9.02(e) and 9.04; and

		
	(ii)
	For all other Defaults, termination of this Agreement, termination of the Capacity Release, transfers of inventory and releases set forth in Articles II and III and reversion of those transfers and releases to Counterparty on twenty-four (24) hours notice, subject to and in accordance with Sections 9.02(d), 9.02(e) and 9.04, and

		
	(iii)
	If, for any reason other than Force Majeure or the fault of Counterparty, Manager fails to deliver the volume of Gas nominated by Counterparty on any Day during the Term of this Agreement, then Manager shall pay to Counterparty an amount equal to (w) the cost, per MMBtu, of obtaining Gas or its equivalent using reasonable methods under the circumstances then prevailing, less (x) the price, per MMBtu, of Baseload Gas or Swing Gas (whichever is less), times (y) the undelivered volume, plus (z) transportation costs and pipeline penalties if applicable.  

		
	(iv)
	If, for any reason other than Force Majeure or the fault of Manager, Counterparty fails to receive delivery of the volume of Gas nominated by Counterparty on any Day during the Term of this Agreement, then Counterparty shall pay to Manager an amount equal to (w) the price, per MMBtu, of Baseload Gas or Swing Gas (whichever is more), less (x) the proceeds, per MMBtu, received by Manager from the alternate sale of the Gas using reasonable methods under the circumstances then prevailing, times (y) the undelivered volume, plus (z) transportation costs and pipeline penalties if applicable.

21

		
	(v)
	With respect to liquidated damages provided for in this Section, it is expressly stipulated by the Parties that the actual amount of any damages would be difficult if not impossible to determine accurately because of the unique nature of this Agreement, the unique needs and requirements of Counterparty, the uncertainties of the Gas market and differences of opinion with respect to such matters, and that the liquidated damages provided for herein are a fair and reasonable estimate by the Parties of such damages.  The liquidated damages provided for in this Section are not intended to compensate either Party for penalties that may be imposed pursuant to Section 15.09.

		
	(d)
	In the event of a termination of this Agreement pursuant to Section 9.02(c)(i) or (ii), in addition to any other remedies available hereunder or pursuant to applicable law, the non-defaulting Party shall have the right, exercisable in its sole discretion, to withhold or suspend deliveries or receipts hereunder or to (i) terminate all agreements between the Parties (each a "Terminated Transaction"), and determine the Settlement Amount (as defined below) of each such Terminated Transaction and (ii) set off, at the election of the non-defaulting Party, any other amounts owed by the defaulting Party to the non-defaulting Party so that all such amounts are netted to a single liquidated amount payable immediately by one Party to the other.  Notwithstanding the foregoing, in the event the non-defaulting Party is unable to terminate the Terminated Transactions during any bankruptcy, insolvency or reorganization proceeding, all such Terminated Transactions shall be deemed to have automatically terminated as of the Business Day immediately preceding the Day on which the non-defaulting Party became subject to such proceeding.  "Settlement Amount" shall mean, with respect to each Terminated Transaction and the non-defaulting Party, an amount determined on the basis of not less than one (1) nor more than the average of three (3) quotations obtained by the non-defaulting Party from dealers or other industry participants recognized in the industry as being knowledgeable in this type of transaction ("Reference Market Makers") for an amount, if any, that shall be payable to the non-defaulting Party by the defaulting Party (expressed hereunder as a positive number but by the Reference Market Maker as a negative number) or payable by the non-defaulting Party to the defaulting Party (expressed hereunder as a negative number but by the Reference Market Maker as a positive number) as consideration for an agreement between the non-defaulting Party and the Reference Market Maker to enter into a transaction that shall have the effect of preserving for the non-defaulting Party the economic equivalent of any payment or delivery (whether the underlying obligation was absolute or contingent and assuming the satisfaction of each applicable condition precedent).  Notwithstanding anything to the contrary herein, the non-defaulting Party shall not be required to enter into any transactions with any dealer(s). Further, the Parties may refer to published prices which are representative of the economic value of this Agreement in lieu of reference to Reference Market Makers upon mutual agreement.

		
	(e)
	The remedies specifically provided for in this Section 9.02 are cumulative of, and may be exercised without prejudice to, any other remedies (whether at law or in equity) to which either Party may be entitled for any Default hereunder, including, without limitation (i) suit(s) to enforce a Party's right to collect amounts owed it hereunder, or (ii) the exercise of offset rights.

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9.03 No Waiver
Termination of this Agreement for any reason shall not operate to waive any right or claim that either Party may have against the other under this Agreement or otherwise.

9.04 Winding Up Operations
At the end of the full term of the Agreement, physical storage gas returned to the control of the Counterparty shall be equal to the Storage Reserve.  Should the Counterparty desire to have storage at a level above the Storage Reserve, the Manager will work with Counterparty and provide on a best efforts basis.  

When this Agreement terminates, whether pursuant to Sections 9.02 or 12.04 or due to the expiration of the Term, the Parties shall reconcile the Storage Accounts as follows.  If the volume of Gas physically present in inventory is less than the Counterparty Storage Account, Manager shall provide Counterparty with Gas, at no charge, sufficient to make up the difference between the Gas physically present and the Counterparty Storage Account, either by in place transfer or injection at the maximum injection rate, but in all events, the difference shall be made up within thirty (30) days of the date of termination.  If the volume of Gas physically present is more than the Counterparty Storage Inventory, then Counterparty, at its option, may either pay for the Gas in place, at the Gas Daily price for the applicable area on the date of termination, or require Manager to remove the Gas within thirty (30) days of the date of termination via in place transfer to a third party or withdrawal.  The Parties shall work together to avoid any penalties resulting from over-injection or over-withdrawals, and Manager shall be responsible for any such penalties.

ARTICLE X
TITLE TO GAS
10.01 Passage of Title

Title to Gas delivered to Counterparty under the provisions of Article IV shall pass from Manager to Counterparty at and when delivered to the Delivery Point.  The Party who has title to the Gas at any time shall be deemed to be in control and possession of the Gas, and shall be responsible for any damage or injury caused thereby, and (ii) all charges, expenses, fees, taxes, damages, injuries, and other costs incurred in connection with or attributable to the purchase and handling of Gas. 

10.02 Warranty of Title

At the time title to Gas passes from one Party to the other, the Party passing title warrants to the other that it has good title to the Gas and that the Gas is free from all liens and adverse claims.

Each Party agrees to indemnify and hold the other Party harmless from, and with respect to, all suits, actions, debts, accounts, damages, costs, losses and expenses (including, but not limited to, reasonable attorneys' fees) arising from or out of any adverse claims of any and all persons with respect to title to Gas passing under this Agreement which attach before title passes to the other 

23

Party.  Each Party shall give the other notice of any suit, action, debt, account, damage, cost, loss, or expense covered by this Section 10.02, and the Party warranting title shall have the option to assume the defense or settlement, or both, of any such contingency.

ARTICLE XI
ASSIGNMENT
11.01 Pledge, Mortgage or Assignment

Either Party may pledge or mortgage this Agreement, the Counterparty Storage Accounts or the Capacity Release as security for its indebtedness only with the prior written consent of the other Party, such consent not to be unreasonably withheld.  This Agreement shall be binding upon and inure to the benefit of the successors, assigns, personal representatives, and heirs of the respective Parties hereto, and the covenants, conditions, rights and obligations of the Agreement shall run for the full term of this Agreement.  No assignment of this Agreement, in whole or in part, shall be made without the prior written consent of the non-assigning Party, which consent shall not be unreasonably withheld, provided however, either Party may transfer its interest to any affiliate by assignment, merger or otherwise without prior written consent of the other Party as long as such entity has a credit status which, in the non-assigning Party's sole opinion, is at least as sound as that of the assignor.  In the event of an assignment of this Agreement, the Counterparty Storage Accounts or the Capacity Release, the assignor shall not be relieved from the performance of its obligations under this Agreement absent a written release issued by the non-assigning Party.  Any other assignment of this Agreement, the Counterparty Storage Accounts or the Capacity Release other than those specifically permitted by the foregoing parts of this Section 11.01 shall be null and void unless the written consent of the other Party shall first have been obtained by the assigning Party.

ARTICLE XII
GOVERNMENTAL AUTHORITY
12.01 Agreement Subject to Valid Laws, Rules and Regulations

This Agreement shall be subject to all valid and applicable laws of the United States and to the applicable valid rules, regulations or orders of any regulatory agency or governmental authority having jurisdiction over the Parties or this Agreement.  The Parties shall be entitled to regard all applicable laws, rules and regulations (federal, state or local) as valid and may act in accordance therewith until such time as the same may be declared invalid by a final, non-appealable judgment of a court of competent jurisdiction.

12.02 Permits, Licenses, Consents, Etc.

Upon execution of this Agreement, each of the Parties agree to seek such certificates, permits, licenses, authorizations and consents (whether from governmental or regulatory agencies, or from 

24

private parties) which are deemed reasonably necessary to perform the obligations of each Party under this Agreement.

12.03 Regulatory Filings

Upon execution of this Agreement, and from time to time throughout its term, each of the Parties shall make all filings on its own behalf which are required by any regulatory bodies having jurisdiction over this Agreement and, upon request of the other Party, shall promptly provide copies of such filings to the other Party.

12.04 Termination Due to Regulatory Changes

Either Party may terminate this Agreement in the event that the FERC, the public service commission regulating Counterparty, or a legislative body changes its statutes, regulations or orders so as (1) to significantly restrict the transactions contemplated in this Agreement, (2) to require Counterparty to assign to its customers portions of the assets included in the Capacity Release, or (3) to significantly and materially modify the nature of the services provided by the Service Providers; provided however, that the Parties shall first endeavor to mutually agree on revisions to this Agreement to comply with such regulatory changes.  In the event the Parties elect to terminate this Agreement pursuant to this Section 12.04, such termination shall be effected as set forth in Section 9.02(d).

ARTICLE XIII
FORCE MAJEURE
13.01 Performance Excused by Force Majeure

If either Party is rendered unable, wholly or in part, by Force Majeure to perform its obligations under this Agreement, other than the obligation to make payments then or subsequently due, it is mutually agreed that performance of the respective obligations of the Parties, so far as they are affected by such Force Majeure, shall be suspended without liability from the inception of any such inability until it is corrected, but for no longer period.  In order to suspend by reason of Force Majeure, the Party claiming such inability shall promptly notify the other Party of the full particulars after the occurrence of the event relied on, and promptly correct the inability to the extent it may be corrected through the exercise of reasonable diligence.  No Party shall, however, be required against its will to settle any labor disputes.  

ARTICLE XIV
CONFIDENTIALITY
14.01 Obligation to Maintain Confidentiality

Each Party agrees that the existence of this Agreement may be considered public information and either Party may disclose the fact that it has entered into this Agreement and the general purposes of the Agreement; however, any press releases or other public announcements shall be approved by the other Party before issuance.  Furthermore, each Party shall maintain all specific parts and 

25

contents of this Agreement in strict confidence and shall not cause or permit disclosure thereof to any third party without the express written consent of the other Party; provided, however, that no specific written consent is required if (i) such information has already become public through no act or omission on the part of either Party, (ii) such disclosure is reasonably required in order to arrange for the Capacity Release and to effectuate the transportation of Gas, or (iii) either Party is required to make such disclosure by order or regulation of any court or agency exercising jurisdiction over the Parties or the subject matter hereof.  Counterparty reserves the right to disclose this Agreement and the terms hereof if Counterparty determines, in Counterparty's reasonable discretion, that such disclosure to its regulatory commissions is advisable, in which case Counterparty shall use its best efforts to have this Agreement and the terms hereof disclosed only pursuant to an agreement whereby the viewing party or parties agree to maintain the confidentiality of the Agreement and terms hereof.  Each Party hereby consents to the disclosure of this Agreement to the outside auditors of the other Party, provided that such auditors agree to maintain the confidentiality of this Agreement.  In the event that this Agreement or any of the terms hereof are required to be disclosed pursuant to the provisions of this Section 14.01, the Party who is required to make such disclosure shall as soon as reasonably possible notify the other Party hereto of the requirement of such disclosure, and the non-disclosing Party shall be entitle to take all reasonable actions to prevent or to minimize such disclosure if, in the non-disclosing Party's sole reasonable judgment, such disclosure would be materially detrimental to such Party.

ARTICLE XV MISCELLANEOUS
15.01 Waiver
No waiver by either Party of any one or more defaults by the other in the performance of any provisions of this Agreement shall operate or be construed as a waiver of any other default or defaults, whether of a like or of a different character.

15.02 Governing Law
This Agreement shall be governed by and construed in accordance with the laws of the State of Virginia without regard to principles of conflicts of law.

15.03 Entire Agreement

This Agreement constitutes the entire agreement between the Parties pertaining to the subject matter hereof, supercedes all prior agreements and understandings, whether oral or written, which the Parties may have had in connection herewith, and may not be modified or amended except by written agreement executed by authorized representatives of each of the Parties.

15.04 Provisions Found to be Invalid

If any provision of this Agreement is determined to be invalid, illegal or otherwise unenforceable for any reason by a governmental authority or a court of competent Jurisdiction, and in the event that the overriding purpose of this Agreement is frustrated by such determination, then the terms 

26

and conditions of this Agreement shall remain in full force and effect to the fullest extent permitted by applicable law.  In the event this Agreement remains in full force and effect, the Parties agree to make a good faith effort to replace the affected provisions with amended provisions that comply with the governmental or judicial rulings as aforesaid.

15.05 Waiver of Certain Damages
EXCEPT AS OTHERWISE SPECIFICALLY PROVIDED HEREIN, NEITHER PARTY SHALL BE LIABLE TO THE OTHER FOR ANY SPECIAL, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR PUNITIVE DAMAGES OF ANY CHARACTER, INCLUDING BUT NOT LIMITED TO LOSS OF USE, LOST PROFITS (PAST AND FUTURE), ADDITIONAL OUT OF POCKET EXPENSES INCURRED BY EITHER PARTY, OR TORT, CONTRACT OR OTHER CLAIMS RESULTING FROM, ARISING OUT OF, IN CONNECTION WITH OR IN ANY WAY INCIDENT TO ANY ACT OR OMISSION OF EITHER PARTY RELATED TO THE PROVISIONS OF THIS AGREEMENT, IRRESPECTIVE OF WHETHER CLAIMS OR ACTIONS FOR SUCH DAMAGES ARE BASED UPON CONTRACT, WARRANTY, NEGLIGENCE, STRICT LIABILITY OR ANY OTHER REMEDY AT LAW OR EQUITY.
15.06 Measurement and Quality 
		
	(a)
	Manager and Counterparty shall rely upon measurement by the Transporter at the Delivery Points at pressures in Transporter's pipeline in existence from time-to-time and such measurements shall be corrected to the Unit of Measurement. Manager's deliveries of Gas shall be calculated from the measurements taken at the meter(s) installed, operated and maintained by Transporter at the Delivery Points, and from the heating value determined by the instruments operated by Transporter.  Measurement and determination of Gas delivered under the Agreement shall be made in accordance with standard industry practice.

		
	(b)
	The Gas to be delivered hereunder shall meet the applicable quality specifications required by each applicable Transporter.  Either Party may refuse to accept delivery of any Gas not meeting the quality specifications.

15.07 Measurement and Allocation Inaccuracies
Counterparty and Manager recognize the inherent inaccuracies in the measurement and allocation of Gas.  Such inaccuracies may at times occur through no fault of Counterparty or Manager such as in the case of allocations after actual deliveries that are the result of measurement inaccuracies, or unpreventable variations in rates of flow at the Delivery Points, and may result in failure to deliver or receive the daily nominated volume (such inaccuracies are hereinafter called “Measurement and Allocation Inaccuracies”).  To the extent the actual quantities delivered or received vary from the daily nominated volume due to Measurement and Allocation Inaccuracies, the Parties agree that Counterparty's obligations to purchase and receive and Manager's obligation sell and deliver, insofar as liquidated damages and rights to termination of this Agreement are concerned, shall be deemed to be fulfilled to the extent that, on a daily and monthly basis, such deliveries and receipts are within the applicable Transporter's Tariff for tolerances regarding imbalances to the extent such tolerances do not impose a penalty or similar charge with respect to such imbalances.

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15.08 Transportation to Delivery Points and Downstream
		
	(a)
	Manager shall be responsible for arranging for transportation of all Gas purchased and sold to Counterparty hereunder to the Delivery Points and Counterparty shall be responsible for transportation downstream of the Delivery Points.

		
	(b)
	In the event that any Transporter requires Manager to provide a ranking of markets to be served by Manager for use by such Transporter in allocating Manager's Gas among such markets in case of under delivery by Manager, or in any other instance of Transporter's inability to deliver all quantities nominated for delivery, Manager shall place deliveries for Counterparty at a level equal to similarly-situated Firm customers in any such ranking; provided, however, that any curtailment of Manager's deliveries of Gas to Counterparty pursuant to such ranking shall not, in and of itself, excuse Manager's obligations under this Agreement, unless due to a Force Majeure event.

15.09 Service Provider Penalties
		
	(a)
	It is understood that the Gas purchased and sold hereunder shall be transported and stored by third party Service Providers, and each Party hereto has agreed to provide notice to the other Party of quantities of Gas Manager intends to deliver and Counterparty intends to purchase and receive at each Delivery Point.  Both Parties shall be obligated to use their best efforts to avoid the imposition by any Service Provider of penalties or other charges, including those for imbalances between receipts and deliveries or for imbalances or deviations from nominated or scheduled quantities.  If Manager delivers, or causes to be delivered, for Counterparty's account, at any Delivery Point a quantity of Gas that is greater or less than that scheduled for delivery to, and transportation by, any Service Provider and such variable deliveries cause Counterparty to incur a penalty or other charges as levied by such Service Provider, then Manager shall bear and pay such penalties or other charges, unless such penalty or other charge was incurred due to a specific Counterparty request to Manager.  If Counterparty takes, at any Delivery Point, a quantity of Gas that is greater or less than that scheduled for delivery to and transportation by any Service Provider (or, for TCO, a quantity which is greater or less than the Balancing Tolerance specified in Section 4.01(b) and such variable receipts cause Manager to incur a penalty or other charges as levied by such Service Provider, then Counterparty shall bear and pay such penalties or other charges.

		
	(b)
	Either Party shall immediately notify the other Party of any notice received from any Service Provider that indicates an imbalance in deliveries exists or is occurring that may give rise to a penalty or other charges.  The Parties agree to cooperate immediately to adjust their deliveries as necessary to bring deliveries and receipts into balance with nominated quantities so that any penalties or other charges are avoided or minimized as much as possible.

		
	(c)
	Independent of any penalty or charge under 15.09(a), if any Transporter employs a cashout mechanism to resolve imbalances under Counterparty arrangements downstream of the Delivery Points and, despite the Parties' efforts under 15.09(b), an imbalance is incurred and cashed out, any cash-out charges or penalties assessed against Counterparty shall be:

28

		
	(i)
	Counterparty's responsibility where such charges or penalties are caused by Counterparty, and 

		
	(ii)
	Manager's responsibility where such charges or penalties are caused by Manager.

		
	(d)
	In the event that Counterparty receives a cash-out payment from any Transporter associated with over deliveries of Gas under this Agreement, and provided that Counterparty has not previously paid Manager for such over deliveries, Counterparty shall pay Manager the amount so received.  In the event that Counterparty must purchase Gas from any Transporter associated with under deliveries of Gas under the Agreement and the price is higher than the price Counterparty would otherwise pay Manager, Manager shall pay Counterparty the positive difference, if any, between the former and latter prices.

15.10 Notices 
All notices required to be sent shall be sent to the Parties at the following addresses, telephone numbers and fax numbers:

To Manager:        Sequent Energy Management, L.P.
1200 Smith Street, Suite 900
Houston, TX  77002

Notices/Correspondence:
Attn:  Contract Administration
Telephone: 832-397-1700
Fax:  832-397-1781

Invoices:
Attn: Gas Accounting
Telephone: 832-397-1700    
Fax:    832-397-3711

To Counterparty:    519 Kimball Ave., N.E.
Roanoke, VA 24016
Telephone:    540-777-3800
Fax:    540-777-3957
        
Notices/Correspondence: 
Attn: Paul Schneider 

Invoices:
Attn: David Garcia

15.11 Duty to Mitigate

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Each Party agrees that it has a duty to mitigate damages and covenants that it shall use commercially reasonable efforts to minimize any damages it may incur as a result of the other Party's performance or non-performance of this Agreement.

15.12 Taxes
Each Party shall use reasonable efforts to administer this Agreement and implement the provisions in accordance with the intent to minimize the imposition of taxes.

15.13 Waiver of Jury Trial
Each Party herein waives its respective right to any jury trial with respect to any litigation arising under, or in connection with, this Agreement.

15.14 No Third Party Beneficiary
This Agreement shall not be construed to create any third party beneficiary relationship in favor of anyone not a party to this Agreement. In addition, the Parties waive and disclaim any third party beneficiary status as to any of the contracts of the other Party.

15.15 Forward Contract
The Parties acknowledge and agree that this Agreement and each nomination documented by a confirmation notice in accordance with Section 5.05 constitutes a “forward contract” within the meaning of the United States Bankruptcy Code.

15.16 Revenue Sharing Request

No more than once during the Term, Counterparty may notify Manager that Counterparty would like to replace the fixed Utilization Fee with a revenue sharing arrangement.  Any such notice shall be made no later than four (4) months prior to the end of the then current Contract Year.  Following receipt of such notification, Manager shall provide a proposed revenue sharing mechanism to Counterparty for the remaining Contract Years and the Parties shall negotiate in good faith to agree upon a revenue sharing arrangement and any such other amendments to this Agreement that may be required to implement a revised structure.  If the Parties are unable to mutually agree upon such terms within six (6) weeks after Counterparty’s receipt of such proposal from Manager, the existing Utilization Fee shall remain in place for the remainder of the Term (including any renewal term as described in Section 9.01).

ARTICLE XVI
ARBITRATION AND DISPUTE RESOLUTION
16.01 Dispute Resolution

30

In the event of a dispute involving an amount under $1,000,000 or in the event the Parties need to re-negotiate portions of this Agreement due to events described in Section 2.01 but are unable to reach agreement, the matter shall be submitted upon the request of either Party to binding arbitration by one (1) qualified arbitrator who has not been previously employed by either Party or its affiliates, and does not have a direct or indirect interest in either Party or the subject matter of the arbitration.  Such arbitrator shall either be mutually selected by the Parties within thirty (30) days after written notice from either Party requesting arbitration, or failing agreement, shall be selected under the expedited rules of the American Arbitration Association (“AAA”).  Such arbitration shall be held in alternating location of the home offices of the Parties, beginning with Manager's home office, or in any other mutually agreeable location.  The rules of the AAA shall apply to the extent not inconsistent with the rules herein specified.  Either Party may initiate arbitration by written notice to the other Party.  The arbitration shall be conducted according to the following: (a) not later than seven (7) days prior to the hearing date set by the arbitrator, each Party shall submit a brief with a single proposal for settlement, (b) the hearing shall be conducted on a confidential basis without continuance or adjournment, (c) the arbitrator shall be limited to selecting one (1) of the settlement proposals submitted by the Parties, (d) each Party shall divide equally the cost of the arbitrator and the hearing, (e) each Party shall be responsible for its own costs and those of its counsel and representatives, and (f) evidence concerning the financial position or organizational make-up of the Parties, any offer made or the details of any negotiation prior to arbitration, and the cost to the Parties of their representatives and counsel shall not be permissible.  The arbitrated award shall not include any consequential or punitive damages.
16.02 Binding Effect

Each Party understands that this Agreement contains an agreement to arbitrate with respect to certain disputes arising under this Agreement.  After signing this Agreement, each Party understands that it shall not be able to bring a lawsuit concerning any dispute that may arise that is covered by this arbitration provision.  Instead, each Party agrees to submit such dispute to an impartial arbitrator.  Any monetary award of the arbitrator may be enforced by the Party in whose favor such monetary award is made in any court of competent jurisdiction.

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IN WITNESS WHEREOF, by execution in duplicate originals, the Parties hereto have caused this Agreement to be effective as of the day and year first above written:

	
				
	 
	SEQUENT ENERGY MANAGMENT, L.P.
	 

	 
	 
	 
	 

	 
	By:
	/s/ Marshall Lang
	 

	 
	Name:
	Marshall Lang
	 

	 
	Title:
	President
	 

	 
	 
	 
	 

	 
	 
	 
	 

	 
	ROANOKE GAS COMPANY
	 

	 
	 
	 
	 

	 
	By:
	/s/ John S. D'Orazio
	 

	 
	Name:
	John S. D'Orazio
	 

	 
	Title:
	President
	 

32

LIST OF EXHIBITS

Exhibit A – Transportation and Storage Agreements

Exhibit B – Pricing Basket

Exhibit C – Storage Inventory

Exhibit D – Operational Requirements

Exhibit D1 – Storage Withdrawals

Exhibit E – Nomination Schedule

Exhibit F – Weighted Average Transportation Costs

Exhibit G – Example of Baseload and Swing Gas Pricing

Exhibit H – Weighted Average Storage Variable Costs

Exhibit I – Example of Storage Price Calculation

Exhibit J – Balancing Report

Exhibit K – Nomination Confirmation

Exhibit L – Fixed Price Mechanism

Exhibit M – Utilization Fee

33

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