Document:

HIG-06.30.2013-10-Q Ex 10.01

 THE HARTFORD

EXCESS SAVINGS PLAN IA

(Including Amendments Effective Through May 2013)

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THE HARTFORD EXCESS SAVINGS PLAN IA
(As amended effective May 28, 2013)

ARTICLE I
PURPOSE

		
	1.1
	Purpose.  The purpose of the Plan is to provide a means of restoring the contributions lost by certain Members under the Qualified Plan due to the application of the limitation imposed by Code Section 401(a)(17) (which limits the amount of an employee's compensation that may be taken into account annually under a qualified plan), and, prior to January 1, 2013, Code Section 402(g)(1) (which limits the amount of compensation an employee may defer annually under a qualified plan), and Code Section 415 (which limits the amount of contributions that may be made annually under a qualified plan on behalf of a particular employee).  The Plan is intended to constitute an unfunded deferred compensation arrangement maintained for a select group of management or highly compensated employees within the meaning of Sections 201(2), 301(a)(3) and 401(a)(1) of ERISA.  Capitalized terms used herein and not defined herein shall have the meanings assigned to such terms by the Qualified Plan.  

Effective January 1, 2009, the Plan, including all amendments adopted prior thereto, was amended and restated in the form of this document, in order to comply with final regulations issued under Section 409A of the Internal Revenue Code.  The Plan is intended to comply with Section 409A of the Code, and no action taken by the Company shall be construed in a manner that would result in the imposition of an additional tax on participants under Section 409A of the Code.  The Plan has been administered in good faith compliance with Section 409A of the Code and the guidance issued thereunder from January 1, 2005 through December 31, 2008.  

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ARTICLE II
DEFINITIONS

The following terms when capitalized herein shall have the meanings assigned below.  

“Accounts” means, collectively, a Participant's Participant Contribution Account, Excess  Matching Company Contribution Account, and Excess Non-Elective Company Contribution Account.

“Act” means the Securities Exchange Act of 1934, as amended from time to time.

“Beneficiary” means, unless a Participant elects otherwise, the individual(s) designated to receive benefits under the Qualified Plan after the death of a Member (if any).  A Participant may designate a different Beneficiary for the Plan, and may change that Beneficiary election at any time, subject to a spouse’s written, notarized consent if married.  A Participant may also name an estate or a trust as Beneficiary.  If (A) no Beneficiary designation is in effect at the time of the Participant's death, (B) no designated Beneficiary survives the Participant, or (C) any Beneficiary designation made by the Participant conflicts with applicable law, such amount shall be paid to the Participant's spouse, if any, or, if no surviving spouse, his or her estate as soon as practicable following the date of his or her death.  

“Change of Control” has the meaning assigned by the Incentive Stock Plan as in effect on January 1, 2009.  
    
“Code” means the Internal Revenue Code of 1986, as amended from time to time.

“Company” means Hartford Fire. 

“Effective Date” means December 19, 1995.  

“Eligible Compensation” means, on or after January 1, 2013, compensation recognized under the Qualified Plan without regard to the Statutory Compensation Limit, but excluding annual bonuses that are not “performance-based” as defined under Section 409A of the Code and the regulations and guidance promulgated thereunder.  Effective as of January 1, 2013, “Eligible Compensation” shall not include compensation in excess of one million dollars ($1,000,000).  Prior to January 1, 2013, “Eligible Compensation” shall not be subject to the $1 million ($1,000,000) limit and shall have the meaning assigned by the Qualified Plan, except that  (A) any reduction in compensation required under the Qualified Plan due to the application of Code Section 401(a)(17) shall be disregarded, and (B) any reduction required under the Qualified Plan due to an election to make Participant Contributions under this Plan shall be disregarded.

“Eligible Member” means a Member who is eligible to participate in the Plan as provided in Article III hereof.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time.

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“Excess Floor Company Contribution” means the contribution credited on behalf of a Participant prior to January 1, 2013 under Section 5.3(A) hereof. 

“Excess Matching Company Contribution” means the contribution credited on behalf of a Participant under Section 5.4 hereof.  

“Excess Matching Company Contribution Account” means the account maintained for a Participant to record Excess Matching Company Contributions and the hypothetical earnings thereon.
 

“Excess Non-Elective Company Contribution” means the contribution credited on behalf of a Participant made during the 2013 Plan Year under Section 5.3(B) hereof.   

“Excess Non-Elective Company Contribution Account”, formerly known as the “Excess Floor Company Contribution Account”, means the account maintained for a Participant to record Excess Non-Elective Company Contributions made during the 2013 Plan Year and, prior to January 1, 2013, Excess Floor Company Contributions, if any, and the hypothetical earnings thereon.   

“Excess Plan Committee” means the committee established by the Board of Directors of The Hartford to handle funding and other related matters associated with certain nonqualified benefit plans, including the Plan.

“Formula Price” means the highest of the following:  (i) the highest composite daily closing price of The Hartford stock during the 60 calendar day period preceding the date of the Change of Control, (ii) the highest gross price paid for such stock during the foregoing period, as reported in a report on Schedule 13D filed with the Securities and Exchange Commission, or (iii) the highest gross price paid or to be paid for such stock (whether by exchange, conversion, distribution upon merger, liquidation or otherwise) in any of the transactions constituting a Change of Control.

“Hartford Fire” has the meaning assigned by the Qualified Plan.  Hartford Fire is the sponsor of the Plan.

“Hypothetical Investment Fund” means a mutual fund or other investment vehicle or measure or index of investment performance selected by the Investment and Savings Plan Investment Committee to determine the hypothetical investment experience of Participant Accounts pursuant to Article IV.  

“Incentive Stock Plan” means The Hartford 2005 Incentive Stock Plan, as it may be amended from time to time. 

“Investment and Savings Plan Investment Committee” means the committee established by the Board of Directors of  Hartford Fire to handle investment matters associated with the Qualified Plan and certain nonqualified benefit plans, including the Plan.

“Member” means an individual who qualifies as a Member as defined in the Qualified Plan.  

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“Participant” means an Eligible Member who has elected to participate in the Plan pursuant to Article III hereof, and who has not become an ineligible Member or received a distribution of all amounts credited to his or her Accounts under the Plan.  

“Participant Contributions” means the amount of Eligible Compensation a Member has elected  to defer in accordance with a Participant Contribution Election Form.

“Participant Contribution Account” means the account maintained for a Participant to record the Participant Contributions and the hypothetical gains and /or losses credited thereon under Article V.  

“Participant Contribution Election Form” shall mean the form (in paper, electronic or other format) or other authorization for Participant Contributions filed by a Participant in accordance with Article III.  

“Pension Administration Committee” has the meaning assigned by the Qualified Plan.

“Plan” means this plan - The Hartford Excess Savings Plan IA.

“Plan Administrator” has the meaning assigned to the term “Plan Administrator” by the Qualified Plan.  

“Plan Year” has the meaning assigned by the Qualified Plan.  

“Qualified Plan” means The Hartford Investment and Savings Plan, as it may be amended from time to time.

 “Statutory Compensation Limit” means the limit set forth in Code Section 401(a)(17). 

“Statutory Limits” means, collectively, the limits set forth in Code Sections 401(a)(17), 402(g)(1), and 415(c).    

“The Hartford” has the meaning assigned by the Qualified Plan.  

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ARTICLE III
ELIGIBILITY AND PARTICIPATION

3.1  Eligibility of Members.  A Member who qualifies as an Eligible Member pursuant to this Section shall be eligible to participate in the Plan in accordance with Section 3.2.  

(A)  Eligible Member Defined.  A Member, other than a Member of a group that the Plan Administrator has determined is ineligible to participate in the Plan, (i) whose compensation recognized under the Qualified Plan for the next succeeding Plan Year is projected to exceed the Statutory Compensation Limit and (ii) who is notified, in accordance with Section 3.2(A), that he or she is eligible to participate in the Plan, shall be deemed to be an Eligible Member in this Plan as of the first day of the next succeeding Plan Year.  

(B)   Rehired Members.  An Eligible Member whose employment with the Company terminates shall again become an Eligible Member only upon completing, subsequent to the date of rehire, the requirements for eligibility set forth in this Section, unless otherwise determined in the sole discretion of the Plan Administrator.  

(C)  Members Deemed Ineligible for Participation.  

(i)  Receipt of Hardship Withdrawal under the Qualified Plan.  If a Member receives a hardship withdrawal under the Qualified Plan, and such Member ceases certain savings for a period of not less than 6 months pursuant to the Qualified Plan, such Member shall be deemed an ineligible Member for such 6 month period. Such Member shall no longer be deemed an ineligible Member as of the first day of the Plan Year following the end of such 6 month period.  

 (ii)  Partial Ineligibility of Certain Members.  A Member shall be deemed an ineligible Member solely with respect to Excess Matching Company Contributions, Excess Floor Company Contributions, or Excess Non-Elective Company Contributions to the extent such Contributions otherwise creditable on behalf of such Member hereunder are credited instead under The Hartford Deferred Compensation Plan.  
 
3.2  Participation.  

(A)  Notice of Eligibility to Participate.  The Plan Administrator shall notify a Member of his or her eligiblity to participate in the Plan.  Receipt of Notice from the Plan Administrator pursuant to this Section 3.2(A) shall be a condition to participation in the Plan.

(B)  Election to Participate.  After an Eligible Member receives notice from the Plan Administrator pursuant to Section 3.2(A), such Eligible Member may elect to participate in the Plan by filing a properly completed Participant Contribution Election Form, or such other authorization or information as the Plan Administrator may require, with the 

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party and by the date designated by the Plan Administrator.  With respect to years prior to 2013, such Participant Contribution Election Form shall authorize automatic Participant Contributions (by payroll deduction) from a Participant's Eligible Compensation for a calendar year in any whole percentage, up to a maximum of 6%, for each pay period beginning after the earlier of when (i) the Eligible Member’s elected level of combined before-tax and Roth 401(k) contributions under the Qualified Plan reaches the Code Section 402(g) annual deferral limit applicable to the calendar year (determined as of the December 31 prior to the start of the Plan Year, based on the Participant’s elected level of such Qualified Plan contributions for the applicable Plan Year), or (ii) the Eligible Member’s year-to-date Eligible Compensation exceeds the Statutory Compensation Limit for the applicable calendar year.  With respect to years after 2012, such Participant Contribution Election Form shall authorize automatic Participant Contributions (by payroll deduction) from a Participant's Eligible Compensation for a calendar year in any whole percentage, up to a maximum of 6%, for each pay period beginning when the Eligible Member’s year-to-date Eligible Compensation exceeds the Statutory Compensation Limit for the applicable calendar year. Once commenced, such deductions shall continue each calendar year until the Participant changes the amount of such Participant Contributions pursuant to this Section 3.2.  Such election shall be irrevocable as of the latest date that an election is permitted under Section 409A of the Code and the regulations and guidance promulgated thereunder. Without limiting the generality of the foregoing, and except as otherwise permitted under Section 409A of the Code and the regulations and guidance promulgated thereunder, an election with respect to the deferral of Eligible Compensation, other than “performance-based compensation” within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder, shall be irrevocable no later than the last day of the calendar year immediately preceding the calendar year in which the services related to such Eligible Compensation are performed, and an election with respect to the deferral of “performance-based compensation” within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder shall be irrevocable no later than the date that is six months before the end of the applicable performance period.

(i)  Amount of Participant Contributions.  The Participant Contributions authorized by a Participant shall be in whole percentages of Eligible Compensation (subject to the limitations set forth above) for each pay period, in effect on the date the payroll deductions to which the Participant Contribution Election Form relates.  

(ii)  Changes in Participant Contributions.  Subject to Section 3.2(B)(i) hereof, a Participant may elect to increase or decrease the amount of Participant Contributions previously authorized by filing a properly completed change form, or such other authorization as the Plan Administrator may require, with the party and by the date designated by the Plan Administrator.  Such change shall be made in whole percentages of Eligible Compensation. A change in election to defer Eligible Compensation, other than “performance-based compensation” within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder, shall be effective with respect to Eligible Compensation related to services performed on or after the first day of the Plan Year following receipt of the change form by the designated party.  A change in election to defer "performance -

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based compensation" (within the meaning of Section 409A of the Code and the regulations and guidance promulgated thereunder) related to services performed during the year in which such change is made, must be made by and shall be effective on the date that is no later than six months before the end of the applicable performance period (which will generally be June 30).  A change in election to defer performance-based compensation shall not be effective if such election is made on a date that is later than six months before the end of the performance period to which such performance-based compensation relates. A Participant cannot elect during the Plan Year to increase or decrease the amount of Participant Contributions for that year; in addition, no changes during the Plan Year to the Participant’s contribution elections under the Qualified Plan shall have any effect on the amount of the Participant’s Participant Contributions under this Plan.  

(C)  Establishment of Participant Accounts.   With respect to each Participant, the Company shall maintain on its books a Participant Contribution Account, Excess Matching Company Contribution Account, and Excess Non-Elective Company Contribution Account.  Amounts shall be credited to or debited from such Accounts as provided in Article V hereof.  The Plan Administrator shall cause records indicating the value of each Participant's Accounts to be maintained.  Such value shall be established at the same time as account values are established under the Qualified Plan, and shall be reported to the Participant from time to time as determined appropriate by the Plan Administrator.  

(D)  Termination of Participation.  The participation of a Participant in the Plan shall terminate on the earlier of (i) the date that all amounts credited to the Participant's 
Accounts have been distributed pursuant to the Plan, or (ii) such other date as may be designated by the Plan Administrator or the Pension Administration Committee consistent with Section 409A of the Code and the regulations and guidance promulgated thereunder.

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     ARTICLE IV
HYPOTHETICAL INVESTMENT FUND INVESTMENT ALLOCATIONS

4.1  Selection of Hypothetical Investment Funds.  The Investment and Savings Plan Investment Committee shall select one or more Hypothetical Investment Funds to which a Participant may elect pursuant to the Plan to allocate all or a portion of amounts then and thereafter credited to the Participant.  Unless otherwise provided by the Investment and Savings Plan Investment Committee, such Hypothetical Investment Funds shall correspond to those offered for investment under the Qualified Plan from time to time. To the extent provided herein, such Hypothetical Investment Funds shall be used to measure the hypothetical investment experience of the portion of a Participant's Account that the Participant properly elects to have allocated thereto.  The Investment and Savings Plan Investment Committee may change the selection of Hypothetical Investment Funds from time to time in its sole discretion.  The selection of any such Hypothetical Investment Funds shall not require the Company to invest or earmark any of its assets in any specific manner.

4.2  No Actual Investment.  Notwithstanding anything herein to the contrary, no Participant Contributions, Excess Matching Company Contributions, Excess Floor Company Contributions, or Excess Non-Elective Company Contributions hereunder, and no amounts credited to a Participant's Accounts pursuant to the Plan, shall be set aside or invested in any actual fund on behalf of the Participant, provided, however, that nothing in the Plan shall be construed to preclude the Company from directly or indirectly making investments for its own account in any actual investment vehicle corresponding to the Hypothetical Investment Funds (or otherwise) in order to assist the Company in meeting its obligations hereunder, or for any other reason whatsoever.  No Participant or any other person or entity shall have by reason of the Plan any right to or in any such investment made by the Company.  

4.3  Hypothetical Investment Fund Allocation for Accounts.  

(A)  Hypothetical Investment Fund Allocation Election.  To the extent permitted by the Plan Administrator, a Participant may elect to have the amount then and thereafter credited to his or her Accounts allocated in multiples of one percent (1%) among one or more of the Hypothetical Investment Funds.  Such election shall be made by filing a properly completed election form (or such other authorization as the Plan Administrator may require) with the party and by the date designated by the Plan Administrator.  Such election shall result in the investment experience of an elected Hypothetical Investment Fund being used to measure the hypothetical investment experience of the particular portion of the Participant's Account allocated to that Hypothetical Investment Fund as provided herein.
  
(B)  Change in Hypothetical Investment Fund Allocation Election.  To the extent permitted by the Plan Administrator, a Participant may change the Hypothetical Investment Fund allocation previously elected by filing a properly completed change form (or such other authorization as the Plan Administrator may require) with the party and by the date designated by the Plan Administrator.  Such change shall be effective following receipt of the timely filed change form by the designated party as of such date 

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as may be designated by the Plan administrator, and shall apply to all amounts then and thereafter credited to the Participant's Account.  

(C)  Failure to Make Proper Hypothetical Investment Fund Allocation Election.  In the event that a Participant does not make a proper election with respect to Participant Contributions, Excess Matching Company Contributions, Excess Floor Company Contributions, or Excess Non-Elective Company Contributions pursuant to this Article IV, such Participant shall be deemed to have elected to have the entire amount (as to which no proper election is made) then and thereafter credited to his or her Participant Contribution Account, Excess Matching Company Contribution Account, or Excess Non-Elective Company Contribution Account, as the case may be, allocated to the Hypothetical Investment Fund that the Plan Administrator determines in its sole discretion generally to have the least risk of loss of principal. Effective September 1, 2006, in the event that a Participant does not make a proper Hypothetical Investment Fund allocation election with respect to any amounts credited pursuant to the Plan, such Participant shall be deemed to have elected to have the entire amount (as to which no proper election is made) then and thereafter credited to the Participant allocated to the Hypothetical Investment Fund corresponding to the applicable Default Vanguard Target Retirement Fund set forth in the Qualified Plan.

(D)  Limitations on Hypothetical Investment Fund Allocation.  The Plan Administrator may establish such limits on the Hypothetical Investment Fund allocations of a Participant as it may deem appropriate in its sole discretion. In the event that an investment fund under the Qualified Plan is eliminated, the Plan Administrator may provide that amounts allocated to the Hypothetical Investment Fund corresponding to the investment fund eliminated under the Qualified Plan, be reallocated to other Hypothetical Investment Funds in a manner comparable to the manner in which assets of the eliminated investment fund are reallocated under the Qualified Plan.  

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ARTICLE V
CREDITING AND DEBITING OF PARTICIPANT ACCOUNTS

5.1  Crediting and/or Debiting of Amounts to Participant Accounts.  The amount of a Participant's Participant Contributions, Excess Matching Company Contributions, Excess Floor Company Contributions or Excess Non-Elective Company Contributions identified in this Article V shall be credited to the appropriate Accounts of the Participant during the Plan Year.  Such amounts shall be so credited at the same time as such amounts would have been credited under the Qualified Plan in the absence of the Statutory Limits, had such contribution been made to the Qualified Plan.  

5.2  Crediting of Participant Contributions.  The amount of Participant Contributions credited to a Participant's Participant Contribution Account for a particular Plan Year shall be equal to the percentage of Eligible Compensation properly elected pursuant to the Participant Contribution Election Form of the Participant.  

5.3  Crediting of Excess Floor Company Contributions and Excess Non-Elective Company Contributions.  

(A)  Prior to January 1, 2013, Excess Floor Company Contributions shall be credited to a Participant's Excess Floor Company Contribution Account (which account is now known as the Excess Non-Elective Company Contribution Account). The amount of Excess Floor Company Contributions credited to such account for a particular Plan Year equals one half of one percent (0.5%) of the Eligible Compensation properly taken into account for purposes of determining the Participant's Participant Contributions.  Excess Floor Company Contributions are only credited after a Participant completes six months of service with the Company. 

(B)  Excess Non-Elective Company Contributions are eliminated for a Participant’s Eligible Compensation for pay dates occurring on or after January 1, 2014.  Effective from January 1, 2013 to December 31, 2013, Excess Non-Elective Company Contributions shall be credited to a Participant's Excess Non-Elective Company Contributions Account.  The amount of such contributions shall equal two percent (2%) of the Participant’s Eligible Compensation that exceeds the Statutory Compensation Limit.  Excess Non-Elective Company Contributions shall only be credited after a Participant completes ninety (90) days of service with the Company (as determined under the Qualified Plan).  Excess Non-Elective Company Contributions shall be credited regardless of whether or not the Participant is contributing any Participant Contributions to the Plan.  Notwithstanding the foregoing, Excess Non-Elective Company Contributions shall be credited to an Excess Non-Elective Company Contribution Account for those Members, as designated by the Plan Administrator, who were not timely notified of their eligibility to participate in the Plan for the 2013 Plan Year, equal to eight percent (8%) of the Member’s 2013 Eligible Compensation that exceeds the 2013 Statutory Compensation Limit; each of those Members shall be a Participant in the Plan despite the Member not contributing any Participant Contributions to the Plan in 2013.

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5.4  Crediting of Excess Matching Company Contributions.   

(A)  Prior to January 1, 2013, the amount of Excess Matching Company Contributions credited to a Participant's Excess Matching Company Contributions Account for a particular Plan Year equals fifty percent (50%) of the  Participant's Participant Contributions for the applicable Plan Year.  Excess Matching Company Contributions are only credited after a Participant completes six months of service with the Company.

(B) On or after January 1, 2013, the amount of Excess Matching Company Contributions credited to a Participant's Excess Matching Company Contributions Account for a particular Plan Year shall be equal to 100 percent (100%) of the Participant's Participant Contributions for the applicable Plan Year.  Excess Matching Company Contributions shall only be credited after a Participant completes ninety (90) days of service with the Company (as determined under the Qualified Plan).

5.5  Crediting and/or Debiting of Investment Experience.  A Participant's Accounts shall be credited and/or debited, as the case may be, with an amount equal to the hypothetical net investment gain or loss that such Participant would have realized if the portion of his or her Account properly elected to be allocated or deemed to be allocated to a particular Hypothetical Investment Fund pursuant to Article IV were actually invested in such Hypothetical Investment Fund.  Such gain or loss shall be credited or debited as of the same date that gains or losses are credited or debited to the corresponding funds under the Qualified Plan.  

5.6  Debiting of Distributions.  Amounts distributed from a Participant's Accounts pursuant to the Plan shall be debited therefrom as of the date of distribution of such amounts.  

5.7  Vesting of Amounts Credited to Accounts.  The amounts credited to the Accounts of a Participant hereunder shall be fully vested at all times.  

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ARTICLE VI
DISTRIBUTIONS FROM PARTICIPANT ACCOUNTS
 
6.1  Distribution to Fiduciary.  If the Plan Administrator determines that any person to whom any amount is otherwise distributable hereunder is unable to care for his or her affairs, such amount (unless a prior claim therefor shall have been made by a duly appointed guardian, committee or other legal representative) may be distributed to any person determined by the Plan Administrator to have fiduciary responsibility for such person otherwise entitled to such amount, in such manner and proportions as the Plan Administrator may deem appropriate.  Any such distribution shall constitute a complete discharge of any obligation of the Company to such person under the Plan. 

6.2  Distribution Upon Termination of Employment. Within 90 days of the first day of the second month following the month in which a Participant’s separation from service occurs, the Company shall distribute to the Participant a single lump sum cash payment equal to the total amount credited to the Participant's Account.  For purposes of the Plan, a Participant separates from service when the Participant either stops working, or when the level of services provided – whether as an employee or as an independent contractor – permanently decreases to no more than 20% of the average level of services provided during the prior 36 months.  Separation from service shall be determined in accordance with policies or practices that the Company shall adopt in accordance with, or as otherwise determined pursuant to, Section 409A of the Code and the regulations and guidance promulgated thereunder.   

If a Participant is a “specified employee” as determined under the practices and policies of the Company as established in accordance with Section 409A of the Code, then distribution to the Participant shall be made in a single lump sum cash payment six months after the date the Participant separates from service.  
  
6.3  Distribution in the Event of Death.  Notwithstanding anything herein to the contrary, in the event of a Participant's death, the entire amount credited to the Participant's Account shall be distributed in a single lump sum cash payment within 90 days following the date of death to the  Beneficiary(ies), if any, properly designated by the Participant by the date and in the manner required by the Plan Administrator. 

6.4  Distribution in the Event of a Termination of the Plan.  In the event of a termination of the Plan, the entire amount credited to a Participant's Accounts shall be distributed to the Participant in a single lump sum cash payment in accordance with Section 409A of the Code and the regulations and guidance promulgated thereunder.  

6.5  Distribution Upon Occurrence of a Change of Control.   Upon the occurrence of a Change of Control that also constitutes a “change in control” as defined in the regulations promulgated under Section 409A of the Code, all Participants shall be paid single lump sum cash payments equal to the entire amount credited to their respective Accounts, such payments to be made within 90 days following the date of such Change of Control.  For purposes of determining the value of the entire amount credited to a Participant's Account under the preceding sentence, any amount in the Participant's Accounts that is allocated to the Hypothetical Investment Fund corresponding to the 

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Qualified Plan fund principally invested in The Hartford stock shall be valued based on the Formula Price for stock of The Hartford.  In the event of the death of a Participant before receiving payment required by this Section 6.5, such payment shall immediately be made to the Participant’s Beneficiary.  

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ARTICLE VII
MISCELLANEOUS

7.1  Unfunded and Unsecured Plan.  The Plan shall be unfunded and unsecured for tax purposes and for purposes of ERISA.  The Company shall have no obligation to fund its liabilities, if any, under the Plan.  Nothing in the Plan and no action taken by the Company or its agents hereunder shall be construed to create a trust of any kind, or a fiduciary relationship between the Company and any other person or entity.  All funds or other assets received or held by the Company pursuant to or in connection with the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such amounts from its general assets.  No Participant or any other person or entity shall have any claim against the Company or its assets other than as an unsecured and unsubordinated general creditor of the Company.  Without limiting the generality of the foregoing, a Participant's claim hereunder shall at any time be solely for the amount then credited to the Participant's Accounts.  Notwithstanding the foregoing, the Company may establish a grantor trust or purchase securities or take any other action deemed appropriate to assist the Company in meeting its obligations under the Plan, provided, however, that in no event shall any person or entity have any right to or interest in such trust or property by reason of the Plan.   

7.2  Absence of Representations.   The Plan shall not be construed to provide any representation or guarantee by the Company that any particular income or other tax consequence will result from a Participant's participation in the Plan.  Each Participant shall be deemed to have consulted with his or her professional tax advisor to determine the tax consequences of participation hereunder.  The Plan shall not be construed to provide any representation or guarantee by the Company that any particular amount of a Participant's Accounts allocated to any of the Hypothetical Investment Funds hereunder will result in any particular investment experience related thereto, and the Company shall in no event be required to pay any amount to any person or entity on account of any loss suffered by reason of the operation of the Plan.  

7.3  Tax Withholding. The Plan Administrator shall have the right to make such provisions as deemed appropriate in its sole discretion to satisfy any obligation of the Company to withhold federal, state or local income or other taxes incurred by reason of the operation of the Plan or benefits provided under the Plan, including but not limited to at any time (i) requiring a Participant to submit payment to the Company for such taxes before paying benefits under the Plan or making settlement of any amount due under the Plan, (ii) withholding such taxes from wages or other amounts due to a Participant before paying benefits under the Plan or making settlement of any amount due under the Plan, (iii) making settlement of any amount due under the Plan part in shares of common stock of The Hartford and part in cash to facilitate satisfaction of such withholding obligations, or (iv) receiving shares of common stock of the Hartford already owned by a Participant or withholding such shares otherwise due to a Participant in an amount determined necessary to satisfy such withholding obligations.  

7.4  Effect of Plan.  The provisions of the Plan shall be binding upon, and inure to the benefit of, all successors of each Participant, including without limitation the Participant’s estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant.

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7.5  Use of Funds.  All funds received or held by the Company pursuant to the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate such funds from its general assets.  

7.6  No Employment Rights.  The Plan shall not, directly or indirectly, create in any Participant any right with respect to continuation of employment with the Company or to the receipt of any Eligible Compensation or other compensation.  The Plan shall not interfere in any way with the rights of the Company to terminate, or otherwise modify, the employment of any Participant or its compensation policies at any time.

7.7 Rights Not Transferable.  The rights of a Participant under the Plan shall not be sold, exchanged, transferred (including an involuntary transfer incident to a divorce), pledged, hypothecated or otherwise disposed of, other than (A) by will, or (B) by the laws of descent or distribution, provided that the rights of any transferee of a Participant shall not be greater than the rights of the Participant hereunder. The foregoing restriction shall be in addition to any restrictions imposed by applicable law on a Participant's ability to dispose of any rights under the Plan.

7.8  Transfers.

(A)  Tranfer to New Employer.  Notwithstanding provisions herein to the contrary, to the extent consistent with Section 409A of the Code and the regulations and guidance promulgated thereunder, in the event that the Company (i) sells or causes the sale of the stock or assets of any company in the controlled group of the Company to a third party, or (ii) causes the distribution to the holders of shares of the Company's common stock all of the outstanding shares of common stock of a subsidiary or subsidiaries of the Company, and as a result of such sale or distribution any particular Participant is no longer eligible to participate hereunder, the liabilities with respect to the benefits accrued by such Participant under the Plan shall, at the discretion and direction of the Company (and approval by the new employer), be transferred to a similar plan of such new employer and become a liability thereunder.  Upon such transfer (and acceptance thereof) the liabilities for such transferred benefits shall become the obligation of the new employer and the liability under this Plan for such benefits shall cease.

(B)  Transfer from Former Employer.  Notwithstanding provisions herein to the contrary, at the discretion and direction of the Company, liabilities with respect to benefits accrued by a Participant under a plan maintained by such Participant's former employer may be transferred to this Plan and upon such transfer such liabilities shall become liabilities hereunder.
7.9  Claims Procedure.  

(A)  Submission of Claims.  Claims for benefits hereunder shall be submitted in writing to the Plan Administrator or to such other person as may be designated by the Plan Administrator.  

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(B)  Denial of Claim.  If any claim for benefits hereunder is wholly or partially denied, the claimant shall be given written notice of such denial within the time and in the manner required for claim denials under the Qualified Plan.  

(C)  Claim Review Procedure.   Any person whose claim for benefits hereunder is denied shall be entitled to a review of such denial, and such review shall be conducted in the same manner and in accordance with the same procedures that apply for review of claims under the Qualified Plan.  

(D)  Exhaustion of Remedy.  No claimant shall institute any action or proceeding in any state or federal court of law or equity or before any administrative tribunal for a claim for benefits under the Plan until such claimant has first exhausted the procedures set forth in this Section.

7.10  Administration.  

(A)  Administration by Committees.  Except as otherwise delegated to the Plan Administrator pursuant to this Section or otherwise, the Pension Administration Committee shall have the same administrative powers, responsibilities, and liability hereunder as are described herein or in the Qualified Plan.  Notwithstanding the foregoing, the responsibilities and liabilities imposed on the Pension Administration Committee under the Qualified Plan as a result of such Qualified Plan being a plan qualifying for special tax treatment under Sections 401(a) and 401(k) of the Code and/or as a result of such Qualified Plan being an ERISA Plan shall in no event be imposed under this Plan.  Except as otherwise delegated to the Plan Administrator pursuant to this Section or otherwise, the Excess Plan Committee shall have the administrative powers, responsibilities and limitations on liability under the Plan as are described in the resolution of the Board of Directors of The Hartford pursuant to which such Committee was created.

(B)  Administration by Plan Administrator.  Except as otherwise provided in the Plan, required by applicable law, or determined by the Pension Administration Committee, (i) the Plan Administrator shall be responsible for the performance of such administrative duties under the Plan not otherwise reserved hereunder to the Pension Administration Committee or the Excess Plan Committee, (ii) the Plan Administrator shall have full authority to administer and interpret the Plan in any manner it deems appropriate in its sole discretion, and (iii) the determinations shall be binding on and conclusive as to all parties.  

7.11   Administrative Expenses.  The Company shall pay for all administrative expenses related to the operation of the Plan, except as otherwise determined by the Pension Administration Committee.

7.12  Amendments to the Plan.  The Board of Directors of Hartford Fire reserves the right to modify or amend the Plan at any time, provided that the Company’s Executive Vice President, Human Resources shall be entitled at any time to make modifications or amendments to the Plan that do not involve a material cost to the Company.  Notwithstanding the foregoing, no modification 

17
6999988_2

or amendment shall be made to Section 6.5 hereof, and no modification or amendment shall adversely affect the right of any Participant to receive the benefits accrued as of the date of such modification or amendment.  Notwithstanding anything in this Plan to the contrary, the Plan shall not be amended or modified during the period in which a Change of Control is threatened.  For purposes of the preceding sentence, a Change of Control shall be deemed to be threatened for the same period that any Change of Control is deemed to be threatened for purposes of the Incentive Stock Plan.  Further, notwithstanding anything in this Plan to the contrary, no amendment or modification following a Change of Control shall adversely impair or reduce the rights of any person with respect to benefits previously accrued hereunder without the consent of such person.  Notwithstanding the above restrictions, the Company’s Executive Vice President, Human Resources may amend the Plan at any time in such manner as such officer deems necessary or advisable, in his or her reasonable judgment, to comply with a change in law or to avoid any payments hereunder being subject to an additional tax under Section 409A of the Code.

7.13  Suspension or Termination of Plan.  The Plan is entirely voluntary on the part of Hartford Fire.  The Board of Directors of Hartford Fire reserves the right at any time to suspend, reduce or partially or completely discontinue Company contributions hereunder, or, to the extent consistent with Section 409A of the Code and the regulations and guidance promulgated thereunder, terminate the Plan, provided, however, that no suspension, reduction, discontinuance or termination shall be effective retroactively or shall adversely affect the right of any Participant to receive the benefits accrued as of the date thereof.  As of the effective date of any suspension, reduction, discontinuance or termination of the Plan, no further Company contributions shall be made on behalf of any Participant, or in the case of a reduction, reduced contributions shall be made to the extent determined appropriate by the Company’s Executive Vice President, Human Resources.  Each Participant's Account shall continue to be credited with investment experience pursuant to Section 5.5 until all amounts in such Account are distributed in accordance with the terms of the Plan.    Notwithstanding anything in this Plan to the contrary, contributions under the Plan shall not be suspended, reduced or partially or completely discontinued and the Plan shall not be suspended, reduced, discontinued or terminated during the period in which a Change of Control is threatened.  For purposes of the preceding sentence, a Change of Control shall be deemed to be threatened for the same period that any Change of Control is deemed to be threatened for purposes of the Incentive Stock Plan. Further, notwithstanding anything in this Plan to the contrary, no suspension, reduction, partial or full discontinuance of contributions, or other suspension, reduction, discontinuation or termination following a Change of Control shall adversely impair or reduce the rights of any person with respect to benefits previously accrued hereunder without the consent of such person.

7.14  Severability of Provisions.  If any provision of the Plan shall be held invalid or unenforceable, such invalidity or unenforceability shall not affect any other provisions hereof, and the Plan shall be construed and enforced as if such invalid or unenforceable provisions had not been included herein.

7.15  Effect of Plan.  The provisions of the Plan shall be binding upon all successors and assigns of a Participant, including without limitation the Participant's estate and the executors, administrators or trustees thereof, heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of the Participant.

18
6999988_2

7.16 Governing Law.  The laws of the State of Connecticut shall govern all matters relating to the Plan, except to the extent such laws are superseded by the laws of the United States.

7.17  Effective Date.  The original Effective Date of this Plan is December 19, 1995.

19
6999988_2efc13-473_exh41.htm

 

Exhibit 4.1

 

	 

 

 

 

 

 

DAIMLER RETAIL RECEIVABLES LLC,

as Depositor,

 

and

 

WILMINGTON TRUST, NATIONAL ASSOCIATION,

 

as Owner Trustee

 

 

AMENDED AND RESTATED

TRUST AGREEMENT

 

Dated as of July 1, 2013

 

  

 

 

 

 

 

 

	 

 

 

 

 

 

  

  

  

 

 

 

	TABLE OF CONTENTS
	 Page

 

ARTICLE ONE

 

DEFINITIONS

 

	
Section 1.01. Capitalized Terms; Rules of Usage

	
1

 

ARTICLE TWO

 

ORGANIZATION

 

	
Section 2.01. Name

	
2

	
Section 2.02. Office

	
2

	
Section 2.03. Purposes and Powers

	
2

	
Section 2.04. Appointment of Owner Trustee

	
3

	
Section 2.05. Initial Capital Contribution of Trust Property

	
3

	
Section 2.06. Declaration of Trust

	
3

	
Section 2.07. Liability of Certificateholders

	
4

	
Section 2.08. Title to Trust Property

	
4

	
Section 2.09. Situs of Issuer

	
4

	
Section 2.10. Representations and Warranties of the Depositor

	
4

	
Section 2.11. Federal Income Tax Matters

	
5

 

ARTICLE THREE

 

CERTIFICATES AND TRANSFER OF INTERESTS

 

	
Section 3.01. Initial Ownership

	
7

	
Section 3.02. The Certificates

	
7

	
Section 3.03. Authentication and Delivery of Certificates

	
8

	
Section 3.04. Registration, Transfer and Exchange of Certificates.

	
8

	
Section 3.05. Mutilated, Destroyed, Lost or Stolen Certificates.

	
9

	
Section 3.06. Persons Deemed Certificateholders

	
10

	
Section 3.07. Access to List of Certificateholders’ Names and Addresses

	
10

	
Section 3.08. Maintenance of Office or Agency

	
11

	
Section 3.09. No Legal Title to Trust Property in Certificateholders

	
11

	
Section 3.10. No Recourse

	
11

	
Section 3.11. Appointment of Paying Agent

	
11

	
Section 3.12. Certificates Nonassessable and Fully Paid

	
12

 

  

i  

  

 

	 Page

 

ARTICLE FOUR

 

ACTIONS BY OWNER TRUSTEE

 

	
Section 4.01. Prior Notice to Certificateholders with Respect to Certain Matters

	
13

	
Section 4.02. Action by Certificateholders with Respect to Certain Matters

	
13

	
Section 4.03. Action by Certificateholders with Respect to Bankruptcy

	
13

	
Section 4.04. Restrictions on Certificateholders’ Power

	
14

	
Section 4.05. Majority Control

	
14

	
Section 4.06. Certain Litigation Matters

	
14

 

ARTICLE FIVE

 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

	
Section 5.01. Application of Trust Funds

	
15

	
Section 5.02. Method of Payment

	
15

	
Section 5.03. No Segregation of Monies; No Interest

	
16

	
Section 5.04. Accounting and Reports to Certificateholders, the IRS and Others

	
16

	
Section 5.05. Signature on Returns; Tax Matters Partner

	
16

ARTICLE SIX

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

	
Section 6.01. General Authority

	
18

	
Section 6.02. General Duties

	
18

	
Section 6.03. Action Upon Instruction

	
18

	
Section 6.04. No Duties Except as Specified in this Agreement or in Instructions

	
19

	
Section 6.05. No Action Except Under Specified Documents or Instructions

	
19

	
Section 6.06. Restrictions

	
20

	
Section 6.07. Notice to Administrator of Repurchase Requests

	
20

ARTICLE SEVEN

 

THE OWNER TRUSTEE

 

	
Section 7.01. Acceptance of Duties

	
21

	
Section 7.02. Furnishing of Documents

	
22

	
Section 7.03. Representations and Warranties

	
22

	
Section 7.04. Reliance; Advice of Counsel

	
23

	
Section 7.05. Not Acting in Individual Capacity

	
23

	
Section 7.06. Owner Trustee Not Liable for Basic Documents or Certificates

	
23

	
Section 7.07. Owner Trustee May Own Securities

	
24

 

 

ii  

  

  

 

	 Page

 

 

ARTICLE EIGHT

 

COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE

 

	
Section 8.01. Owner Trustee’s Fees and Expenses

	
25

	
Section 8.02. Indemnification

	
25

	
Section 8.03. Payments to the Owner Trustee

	
25

 

ARTICLE NINE

 

TERMINATION OF TRUST AGREEMENT

 

	
Section 9.01. Termination of Trust Agreement

	
26

 

ARTICLE TEN

 

SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

 

	
Section 10.01. Eligibility Requirements for Owner Trustee

	
28

	
Section 10.02. Resignation or Removal of Owner Trustee

	
28

	
Section 10.03. Successor Owner Trustee

	
29

	
Section 10.04. Merger or Consolidation of Owner Trustee

	
29

	
Section 10.05. Appointment of Co-Trustee or Separate Trustee

	
30

 

ARTICLE ELEVEN

 

REGULATION AB

 

	
Section 11.01. Intent of the Parties; Reasonableness

	
32

	
Section 11.02. Representations and Warranties

	
32

	
Section 11.03. Information to Be Provided by the Owner Trustee

	
32

 

ARTICLE TWELVE

 

MISCELLANEOUS

 

	
Section 12.01. Supplements and Amendments

	
34

	
Section 12.02. Limitations on Rights of Others

	
35

	
Section 12.03. Notices

	
35

	
Section 12.04. Severability

	
36

	
Section 12.05. Counterparts

	
36

	
Section 12.06. Successors and Assigns

	
36

	
Section 12.07. No Petition

	
36

	
Section 12.08. Table of Contents and Headings

	
36

 

 

iii  

  

  

 

	 Page

 

 

	
Section 12.09. GOVERNING LAW

	
36

 

EXHIBITS

 

	Exhibit A – Form of Certificate	
A 1

	Exhibit B – Form of Certificate of Trust	 B 1
	Exhibit C – Form of Repurchase Request Notice  	B 1

 

                                                      

                                                               

                                                                                   

 

 

iv  

  

  

This AMENDED AND RESTATED TRUST AGREEMENT, dated as of July 1, 2013 (as amended, restated, supplemented or otherwise modified from time to time, this “Agreement”), is between DAIMLER RETAIL RECEIVABLES LLC, a Delaware limited liability company, as depositor (the “Depositor”), and WILMINGTON TRUST, NATIONAL ASSOCIATION, a national banking association, as trustee (the “Owner Trustee”).

 

WHEREAS, the parties hereto entered into a Trust Agreement, dated as of April 30, 2013 (the “Original Trust Agreement”), and filed a certificate of trust with the Secretary of State of the State of Delaware pursuant to which Mercedes-Benz Auto Receivables Trust 2013-1 was formed; and

 

WHEREAS, the parties hereto are entering into this Agreement pursuant to which, among other things, the Original Trust Agreement will be amended and restated.

 

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 ONE

 

DEFINITIONS

 

Section 1.01.  Capitalized Terms; Rules of Usage.  Capitalized terms used in this Agreement that are not otherwise defined shall have the meanings ascribed thereto in Appendix A to the Sale and Servicing Agreement, dated as of July 1, 2013, among the Issuer, the Depositor and Mercedes-Benz Financial Services USA LLC, which Appendix is hereby incorporated into and made a part of this Agreement.  Appendix A also contains rules as to usage applicable to this Agreement.

 

 

  

  

  

ARTICLE TWO

 

ORGANIZATION

 

Section 2.01.  Name.  The trust created pursuant to the Original Trust Agreement and continued hereby shall be known as “Mercedes-Benz Auto Receivables Trust 2013-1”, in which name the Owner Trustee may conduct the business of the Issuer, make and execute contracts and other instruments on behalf of the Issuer and sue and be sued.

 

Section 2.02.  Office.  The office of the Issuer shall be in care of the Owner Trustee at the Corporate Trust Office or at such other address in the State of Delaware as the Owner Trustee may designate by written notice to the Trustees and the Certificateholders.

 

Section 2.03.  Purposes and Powers.

 

(a)  The purpose of the Issuer is to engage in the following activities:

 

(i)      to issue the Notes pursuant to the Indenture and the Certificates pursuant to this Agreement and to convey and deliver the Securities upon the written order of the Depositor;

 

(ii)     to issue additional notes or certificates pursuant to one or more supplemental indentures or amendments to this Agreement and to transfer all or a portion of such securities to the Depositor, subject to compliance with the Basic Documents, in exchange for all or a portion of the Certificates; provided, that:

 

(A)           the rights of the holders of such additional securities, when taken as a whole, are no greater than the rights of the Certificateholders immediately prior to the issuance of such additional securities (unless all Noteholders otherwise consent);

 

(B)           the Rating Agencies have provided written confirmation that the issuance of the additional securities will not adversely affect the ratings of any outstanding Class of Notes or, if then rated by any Rating Agency, of the Certificates; and

 

(C)           the Depositor delivers an opinion to the Trustees that the issuance of the additional securities will not (1) adversely affect in any material respect the interest of any Noteholder, (2) cause any Outstanding Note to be deemed sold or exchanged, (3) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for federal income tax purposes or (4) adversely affect the treatment of the Outstanding Notes as debt for federal income tax purposes;

(iii)    to enter into and perform its obligations under any interest rate protection or swap agreement or agreements between the Issuer and one or more counterparties;

 

 

 

 

  

2

  

(iv)   to permit the Depositor to use, or to use, at the direction of the Depositor, the proceeds of the sale of the Notes to (A) purchase the Receivables on the Closing Date, (B) fund the Reserve Fund with an amount equal to the Reserve Fund Deposit, (C) pay the organizational, start-up and transactional expenses of the Issuer and (D) pay to the Depositor, or permit the Depositor to retain, the balance;

 

(v)    to pay interest on and principal of the Notes to the Noteholders and to cause any Excess Collections to be paid to the Certificateholders in accordance with the Indenture;

 

(vi)   to Grant the Trust Property to the Indenture Trustee pursuant to the Indenture to secure payments on the Notes;

 

(vii)  to enter into and perform its obligations under the Issuer Basic Documents; and

 

(viii) to engage in those activities, including entering into agreements, that are necessary, suitable or convenient to accomplish the foregoing or are incidental thereto or connected therewith.

 

(b)           The Issuer is hereby authorized to engage in the foregoing activities.  The Issuer shall not engage in any activity other than in connection with the foregoing or other than as required or authorized by the terms of this Agreement and the other Basic Documents.

 

Section 2.04.  Appointment of Owner Trustee.  The Depositor hereby confirms the appointment of the Owner Trustee as trustee of the Issuer effective as of the date of the Original Trust Agreement, to have all the rights, powers and duties set forth herein and in the Delaware Statutory Trust Act.

 

Section 2.05.  Initial Capital Contribution of Trust Property.  The Depositor has previously sold, assigned, transferred, conveyed and set over to the Owner Trustee, as of the date of the Original Trust Agreement, the sum of $1.  The Owner Trustee hereby acknowledges receipt in trust from the Depositor, of the foregoing contribution, which shall constitute the initial Owner Trust Estate.  The Depositor shall pay the organizational expenses of the Issuer as they may arise or shall, upon the request of the Owner Trustee, promptly reimburse the Owner Trustee for any such expenses paid by the Owner Trustee.  On the Closing Date, the Depositor will sell, transfer, assign and convey to the Issuer certain property to be included in the Trust Property pursuant to the Sale and Servicing Agreement, and the Issuer will issue and convey the Securities to or upon the order of the Depositor.

 

Section 2.06.  Declaration of Trust.  The Owner Trustee hereby declares that it will hold the Trust Property in trust upon and subject to the conditions set forth herein for the use and benefit of the Certificateholders, subject to the obligations of the Issuer under the Basic Documents.  It is the intention of the parties that (i) the Issuer constitute a statutory trust under the Delaware Statutory Trust Act and that this Agreement constitute the governing instrument of such statutory trust and (ii) solely for income and franchise tax purposes, the Issuer shall be treated as either an entity that is disregarded as separate from the beneficial owner of the equity if there is only one such owner, or as a partnership (other than an association or publicly traded

 

 

 

  

3

  

partnership) if there are two or more such owners, with the assets of the partnership being the Receivables and other assets held by the Issuer, the partners of the partnership being the Certificateholders and any holders of Notes that are required by the IRS to be treated as equity in the Issuer, and the remaining Notes constituting indebtedness of the partnership.  The parties agree that, unless otherwise required by appropriate tax authorities, the Issuer will file or cause to be filed annual or other necessary returns, reports and other forms consistent with the foregoing characterization of the Issuer for such tax purposes.  Effective as of the date hereof, the Owner Trustee shall have all the rights, powers and duties set forth herein and in the Delaware Statutory Trust Act with respect to accomplishing the purposes of the Issuer as set forth in Section 2.03(a).  The Owner Trustee has filed the Certificate of Trust with the Secretary of State.

 

Section 2.07.  Liability of Certificateholders.  The Certificateholders shall be entitled to the same limitation of personal liability extended to stockholders of private corporations for profit organized under the general corporation law of the State of Delaware.

 

Section 2.08.  Title to Trust Property.  Legal title to the Trust Property shall be vested at all times in the Issuer as a separate legal entity except where Applicable Law in any jurisdiction requires title to any part of the Trust Property to be vested in a trustee or trustees, in which case title shall be deemed to be vested in the Owner Trustee, a co-trustee or a separate trustee, as the case may be; provided, that concurrently with or prior to title being deemed to be vested in a co-trustee and/or separate trustee, such trustee must provide a written grant of a security interest in the Trust Property to the Indenture Trustee and must authorize the filing of a financing statement to perfect the Indenture Trustee’s security interest.

 

Section 2.09.  Situs of Issuer.  The Issuer will be located and administered in the State of Delaware.  Any bank accounts maintained by the Owner Trustee on behalf of the Issuer shall be located in the States of Delaware or New York.  The Issuer shall not have any employees in any State other than the State of Delaware; provided, however, that nothing herein shall restrict or prohibit the Owner Trustee from having employees within or outside of the State of Delaware.  Payments will be received by the Issuer only in the States of Delaware or New York, and payments will be made by the Issuer only from the States of Delaware or New York.  The only office of the Issuer will be at the Corporate Trust Office of the Owner Trustee in the State of Delaware.

 

Section 2.10.  Representations and Warranties of the Depositor.  The Depositor hereby represents and warrants to the Owner Trustee that:

 

(i)  The Depositor is duly formed and validly existing as a limited liability company in good standing under the laws of the State of Delaware, with power and authority to own its properties and to conduct its business as such properties are currently owned and such business is presently conducted.

 

(ii)  The Depositor is not a Benefit Plan.

 

(iii)  The Depositor is duly qualified to do business as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the failure to so qualify or obtain such licenses and approvals

 

 

 

  

4

  

would, in the reasonable judgment of the Depositor, materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, this Agreement.

 

(iv)  The Depositor has the power and authority to execute and deliver this Agreement and to carry out its terms and to transfer and assign the property to be transferred and assigned to and deposited with the Issuer; and the execution, delivery and performance of this Agreement and such transfer, assignment and deposit have been duly authorized by the Depositor by all necessary limited liability company action.

 

(v)  This Agreement constitutes a legal, valid and binding obligation of the Depositor, enforceable in accordance with its terms, except as enforceability may be subject to or limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, fraudulent conveyance or other similar laws affecting the enforcement of creditors’ rights in general and by general principles of equity, regardless of whether such enforceability shall be considered in a Proceeding in equity or at law.

 

(vi)  The consummation of the transactions contemplated by this Agreement and the fulfillment of the terms hereof do not conflict with, result in any breach of any of the terms and provisions of, or constitute (with or without notice or lapse of time) a default under, the certificate of formation or limited liability company agreement of the Depositor, or any material indenture, agreement or other instrument to which the Depositor is a party or by which it is bound; nor result in the creation or imposition of any Lien upon any properties of the Depositor pursuant to the terms of any such material indenture, agreement or other instrument (other than pursuant to the Basic Documents); nor violate any Applicable Law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any Governmental Authority having jurisdiction over the Depositor or its properties.

 

(vii)  To the knowledge of the Depositor, there are no Proceedings or investigations pending or threatened against the Depositor before any Governmental Authority having jurisdiction over the Depositor or its properties (a) asserting the invalidity of any Basic Document, (b) seeking to prevent the consummation of any of the transactions contemplated by any Basic Document, (c) seeking any determination or ruling that would materially and adversely affect the performance by the Depositor of its obligations under, or the validity or enforceability of, any Depositor Basic Document or (d) seeking any determination or ruling that would adversely affect the federal tax attributes of the Issuer or the Securities.

 

Section 2.11.  Federal Income Tax Matters.  The Certificateholders acknowledge that it is their intent and that they understand it is the intent of the Depositor and the Servicer that, for purposes of federal income, State and local income and franchise tax and any other income taxes, the Issuer shall be treated as either an entity that is disregarded as separate from the beneficial owner of the equity in the Issuer if there is only one such owner, or as a partnership (other than an association or publicly traded partnership) if there are two or more such owners, and income, gain or loss of the Issuer for such month as determined for federal, State and local income and franchise tax purposes shall be allocated among the Certificateholders as of the Record Date

 

 

 

  

5

  

occurring within such month, in proportion to their ownership of the Certificate Percentage Interests on such date.  The Depositor hereby agrees and each Certificateholder by acceptance of a Certificate agrees to such treatment and each agrees to take no action inconsistent with the foregoing characterization.

 

The Depositor is authorized to modify the allocations in this Section if necessary or appropriate, in its sole discretion, for the allocations to reflect fairly the economic income, gain or loss to the Certificateholders or as otherwise required by the Code.

 

 

 

  

6

  

ARTICLE THREE

 

CERTIFICATES AND TRANSFER OF INTERESTS

 

Section 3.01.  Initial Ownership.  Upon the formation of the Issuer by the contribution and conveyance by the Depositor as described in Section 2.05 and until the issuance of the Certificates, the Depositor shall be the sole beneficiary of the Issuer.

 

Section 3.02.  The Certificates.

 

(a)  The Certificates shall be issued in one or more registered, definitive, physical certificates substantially in the form of Exhibit A.  The Certificates may be in printed or typewritten form and shall be executed on behalf of the Issuer by manual or facsimile signature of an Authorized Officer of the Owner Trustee.  Certificates bearing the manual or facsimile signatures of individuals who were, at the time when such signatures shall have been affixed, authorized to sign on behalf of the Issuer, shall be validly issued and entitled to the benefits of this Agreement, notwithstanding that such individuals or any of them shall have ceased to be so authorized prior to the authentication and delivery of such Certificates or did not hold such offices at the date of authentication and delivery of such Certificates.

 

(b)  If Transfer of a Certificate is permitted pursuant to this Section and Section 3.04, the transferee of such Certificate shall become a Certificateholder, and shall be entitled to the rights and subject to the obligations of a Certificateholder hereunder upon such transferee’s acceptance of a Certificate duly registered in such transferee’s name pursuant to Section 3.04.

 

(c)  The Depositor as the sole Certificateholder may exchange all or a portion of the Certificates for additional securities issued by the Issuer pursuant to one or more supplemental indentures to the Indenture or amendments to this Agreement.  Such additional securities may consist of one or more classes of notes, certificates or other securities, as directed by the Depositor, each having the characteristics, rights and obligations as may be directed by the Depositor (which may include subordination to one or more other classes of such additional securities), so long as the following conditions are satisfied: (i) the rights of the holders of such additional securities, when taken as a whole, are no greater than the rights of the Certificateholders immediately prior to the issuance of such additional securities (unless the Holders of 100% of the Notes Outstanding otherwise consent); (ii) the Rating Agencies have provided written confirmation that the issuance of such additional securities will not adversely affect the ratings of the Notes; and (iii) the Depositor has provided to the Indenture Trustee and the Owner Trustee an Opinion of Counsel to the effect that the issuance of such additional securities will not (1) adversely affect in any material respect the interests of any Noteholder, (2) cause any Note to be deemed sold or exchanged, (3) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for federal income tax purposes or (4) adversely affect the treatment of the Notes as debt for federal income tax purposes.  Without limiting the foregoing, one or more classes of such additional securities may, if so directed by the Depositor, be secured by all or a portion of the Trust Estate, so long as such security interest is subordinated in priority to the security interest granted to the Noteholders pursuant to the Indenture.  Subject to this Section and the terms of the other Basic Documents, the Issuer, will take (at the expense of the Depositor) all actions requested by the Depositor to

 

 

 

  

7

  

facilitate the issuance and sale of any such additional securities or the grant and perfection of any security interest granted pursuant to this Section, including the authorization of the filing of any financing statements in jurisdictions deemed necessary or advisable by the Depositor to perfect such security interest.

 

Section 3.03.  Authentication and Delivery of Certificates.  Concurrently with the sale of the Receivables to the Issuer pursuant to the Sale and Servicing Agreement, the Owner Trustee shall cause the Certificates to be executed on behalf of the Issuer, authenticated and delivered to or upon the written order of the Depositor, signed by its president, any Vice President, its treasurer, any assistant treasurer, its secretary or any assistant secretary, without further limited liability company action by the Depositor.  No Certificate shall entitle the respective Certificateholder to any benefit under this Agreement, or be valid for any purpose, unless there shall appear on such Certificate a certificate of authentication substantially in the form set forth in Exhibit A, executed by the Owner Trustee or its authenticating agent, by manual signature; and such authentication shall constitute conclusive evidence that such Certificate shall have been duly authenticated and delivered hereunder.  All Certificates shall be dated the date of their authentication.  Upon issuance, authentication and delivery pursuant to the terms hereof, the Certificates will be entitled to the benefits of this Agreement.

 

Section 3.04.  Registration, Transfer and Exchange of Certificates.

 

(a)  The Owner Trustee initially shall be the registrar (the “Certificate Registrar”) for the purpose of registering Certificates and Transfers of Certificates as herein provided.  The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.08, a register (the “Certificate Register”) in which, subject to such reasonable regulations as it may prescribe, the Certificate Registrar shall provide for the registration of Certificates and the registration of Transfers of Certificates.  Upon any resignation of any Certificate Registrar, the Owner Trustee shall, upon receipt of written instructions from the Depositor, promptly appoint a successor thereto.

 

(b)  The Certificates may not be acquired by or for the account of a Benefit Plan.  Each Certificateholder, by its acceptance of a Certificate, shall be deemed to have represented and warranted that such Certificateholder is not (i) a Benefit Plan and is not a Person acting on behalf of a Benefit Plan or a Person using the assets of a Benefit Plan to effect the transfer of such Certificate or (ii) an insurance company purchasing a Certificate with funds contained in an “insurance company general account” (as defined in Section V(e) of PTCE 95-60) that includes the assets of a Benefit Plan for purposes of the Plan Asset Regulation.

 

Any Person who is not an Affiliate of the Seller and acquires more than 49.9% of the Certificates will be deemed to represent that it is not a party in interest (within the meaning of ERISA) or a disqualified person (within the meaning of Section 4975(e)(2) of the Code) with respect to any Benefit Plan, other than a Benefit Plan that it sponsors for the benefit of its employees, and that no Benefit Plan with respect to which it is a party in interest has or will acquire any interest in the Notes.

 

To the extent permitted under Applicable Law (including ERISA), neither the Owner Trustee nor the Certificate Registrar shall be under any liability to any Person for any registration

 

 

 

  

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of Transfer of any Certificate that is in fact not permitted under Applicable Law (including ERISA) or for taking any other action with respect to such Certificate under the provisions of this Agreement so long as such Transfer was registered by the Owner Trustee or the Certificate Registrar in accordance with this Agreement.

 

(c)  Upon surrender by a Certificateholder for registration of Transfer of any Certificate at the office or agency of the Certificate Registrar to be maintained as provided in Section 3.08, and upon compliance with any provisions of this Agreement relating to such Transfer, the Owner Trustee shall execute on behalf of the Issuer and the Owner Trustee shall authenticate and deliver to the Certificateholder making such surrender, in the name of the designated transferee or transferees, one or more new Certificates in any authorized denomination evidencing the same aggregate interest in the Issuer.  Each Certificate presented or surrendered for registration of Transfer shall be accompanied by a written instrument of transfer and accompanied by IRS Form W-8BEN, W-8ECI or W-9, as applicable, in form satisfactory to the Owner Trustee and the Certificate Registrar, duly executed by the Certificateholder or its attorney duly authorized in writing.  Each Certificate presented or surrendered for registration of Transfer shall be canceled and subsequently disposed of by the Certificate Registrar in accordance with its customary practice.  No service charge shall be made for any registration of Transfer of Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection with any Transfer of Certificates.

 

(d)  All Certificates surrendered for registration of Transfer, if surrendered to the Issuer or any agent of the Owner Trustee or the Issuer under this Agreement, shall be delivered to the Owner Trustee and promptly cancelled by it, or, if surrendered to the Owner Trustee, shall be promptly cancelled by it, and no Certificates shall be issued in lieu thereof except as expressly permitted by any of the provisions of this Agreement.  The Owner Trustee shall dispose of cancelled Certificates in accordance with its normal practice.

 

Section 3.05.  Mutilated, Destroyed, Lost or Stolen Certificates.

 

(a)  If (i) any mutilated Certificate is surrendered to the Certificate Registrar, or the Certificate Registrar receives evidence to its satisfaction of the destruction, loss or theft of any Certificate and (ii) there is delivered to the Certificate Registrar and the Owner Trustee such security or indemnity as may be required by them to save each of them harmless, then, in the absence of notice that such Certificate has been acquired by a Protected Purchaser, the Owner Trustee on behalf of the Issuer shall execute and the Owner Trustee or its authenticating agent shall authenticate and deliver, in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a new Certificate of a like tenor and Certificate Percentage Interest.  If, after the delivery of such replacement Certificate or payment of a destroyed, lost or stolen Certificate, a Protected Purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment such original Certificate, the Issuer and the Owner Trustee shall be entitled to recover such replacement Certificate (or such payment) from the Person to whom such replacement Certificate was delivered or any Person taking such replacement Certificate from such Person to whom such replacement Certificate was delivered or any assignee of such Person, except a Protected Purchaser, and shall be entitled to recover upon the security or indemnity provided therefor to the extent of any loss, damage, cost or expense incurred by the

 

 

 

  

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Issuer or the Owner Trustee in connection therewith.  Any duplicate Certificate issued pursuant to this Section shall constitute conclusive evidence of ownership in the Issuer, as if originally issued, whether or not the lost, stolen or destroyed Certificate shall be found at any time.

 

(b)           Upon the issuance of any replacement Certificate under this Section, the Issuer may require the payment by the Certificateholder of a sum sufficient to cover any tax or other governmental charge that may be imposed in connection with such issuance and any other reasonable expenses (including the fees and expenses of the Owner Trustee) related thereto.

 

(c)           Every replacement Certificate issued pursuant to this Section in replacement of any mutilated, destroyed, lost or stolen Certificate shall constitute an original additional contractual obligation of the Issuer, whether or not the mutilated, destroyed, lost or stolen Certificate shall be at any time enforceable by anyone, and shall be entitled to all the benefits of this Agreement equally and proportionately with any and all other Certificates duly issued hereunder.

 

(d)           The provisions of this Section are exclusive and shall preclude (to the extent lawful) all other rights and remedies with respect to the replacement or payment of mutilated, destroyed, lost or stolen Certificates.

 

Section 3.06.  Persons Deemed Certificateholders.  Prior to due presentation of a Certificate for registration of Transfer, the Owner Trustee, the Certificate Registrar, the Paying Agent and their respective agents may treat the Person in whose name such Certificate is registered in the Certificate Register (as of the day of determination) as the Certificateholder of such Certificate for the purpose of receiving distributions pursuant to Section 5.01 and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar, the Paying Agent or their respective agents shall be bound by any notice to the contrary.

 

Section 3.07.  Access to List of Certificateholders’ Names and Addresses.  The Certificate Registrar shall furnish or cause to be furnished to the Servicer, the Depositor and the Indenture Trustee or the Owner Trustee, as the case may be, within 15 days after receipt by the Certificate Registrar of a written request therefor from the Servicer, the Depositor or either Trustee, as the case may be, a list, in such form as the requesting party may reasonably require, of the names and addresses of the Certificateholders as of the most recent Record Date.  If three or more Certificateholders, or one or more Holders of Certificates evidencing not less than 25% of the aggregate Certificate Percentage Interests (hereinafter referred to as the “Applicants”), apply in writing to the Certificate Registrar, and such application states that the Applicants desire to communicate with other Certificateholders with respect to their rights under this Agreement or under the Certificates and such application is accompanied by a copy of the communication that such Applicants propose to transmit (which shall be deemed to be a purpose reasonably related to the Applicants’ interest in the Issuer), then the Certificate Registrar shall, within five Business Days after the receipt of such application, afford such Applicants access during normal business hours to the current list of Certificateholders.  Each Certificateholder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Depositor, the Certificate Registrar or the Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived.

 

 

 

  

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Section 3.08.  Maintenance of Office or Agency.  The Issuer shall maintain an office or offices or agency or agencies where notices and demands to or upon the Issuer or the Owner Trustee in respect of the Basic Documents may be served.  The Issuer initially designates its office c/o Wilmington Trust, National Association, Rodney Square North, 1100 North Market Street, Wilmington, Delaware  19890, for such purposes and will promptly notify the Depositor and the Owner Trustee of any change in the location of such office.

 

Section 3.09.  No Legal Title to Trust Property in Certificateholders.  The Certificateholders shall not have legal title to any part of the Trust Property.  The Certificateholders shall be entitled to receive distributions with respect to their undivided beneficial interest therein only in accordance with Articles Five and Nine.  No transfer, by operation of law or otherwise, of any right, title or interest of the Certificateholders to and in their beneficial interest in the Trust Property shall operate to terminate this Agreement or the trusts hereunder or entitle any transferee to an accounting or to the transfer to it of legal title to any part of the Trust Property.

 

Section 3.10.  No Recourse.  Each Certificateholder, by accepting a Certificate, acknowledges that the Certificates represent beneficial interests in the Issuer only and do not represent interests in or obligations of the Depositor, the Seller, the Servicer, the Administrator, either Trustee or any of their respective Affiliates and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated in the Certificates or any Basic Document.

 

Section 3.11.  Appointment of Paying Agent.  The Paying Agent shall make distributions to Certificateholders in accordance with the Indenture and shall report the amount of such distributions to the Owner Trustee.  The Paying Agent shall have the revocable power to withdraw funds from the Collection Account for the purpose of making the distributions referred to above.  The Owner Trustee may revoke such power and remove the Paying Agent if the Owner Trustee determines in its sole discretion that the Paying Agent shall have failed to perform its obligations under this Agreement in any material respect.  The Paying Agent shall initially be the Indenture Trustee, and any co-paying agent chosen by the Paying Agent that is acceptable to the Owner Trustee and the Depositor.  Each Paying Agent shall be permitted to resign as Paying Agent upon 30 days’ prior written notice to the Owner Trustee and the Depositor.  In the event that the Indenture Trustee shall no longer be the Paying Agent, the Owner Trustee, upon receipt of written instruction from the Depositor, shall appoint a successor to act as Paying Agent (which shall be a bank or trust company).  The Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the Owner Trustee to execute and deliver to the Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the Owner Trustee that, as Paying Agent, such successor or additional Paying Agent will hold all sums, if any, held by it for payment to the Certificateholders in trust for the benefit of the Certificateholders entitled thereto until such sums shall be paid to such Certificateholders.  The Paying Agent shall return all unclaimed funds to the Owner Trustee and upon removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the Owner Trustee.  If at any time the Owner Trustee shall act as Paying Agent, the rights, privileges, protections and indemnities afforded to the Owner Trustee hereunder shall apply equally to the Owner Trustee in its role as Paying Agent.  Any reference in

 

 

 

  

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this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise.

 

Section 3.12.  Certificates Nonassessable and Fully Paid.  Certificateholders shall not be personally liable for obligations of the Issuer.  The interests represented by the Certificates shall be nonassessable for any losses or expenses of the Issuer or for any reason whatsoever, and, upon the authentication thereof by the Owner Trustee pursuant to Sections 3.03, 3.04 or 3.05, the Certificates are and shall be deemed fully paid.

 

 

 

  

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ARTICLE FOUR

 

ACTIONS BY OWNER TRUSTEE

 

Section 4.01.  Prior Notice to Certificateholders with Respect to Certain Matters.  Subject to the provisions and limitations of Section 4.04, the Owner Trustee shall not take action unless at least 30 days before the taking of such action with respect to the following matters the Owner Trustee shall have notified the Certificateholders in writing of the proposed action and Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests shall not have notified the Owner Trustee in writing prior to the 30th day after such notice is given that such Certificateholders have withheld consent or provided alternative direction:

 

(a)           the initiation of any claim or lawsuit by the Issuer and the settlement of any Proceeding, investigation or claim brought by or against the Issuer, in each case other than claims or lawsuits brought by the Servicer on behalf of the Issuer for collection of the Receivables and the Financed Vehicles;

 

(b)           the election by the Issuer to file an amendment to the Certificate of Trust (unless such amendment is required to be filed under the Delaware Statutory Trust Act);

 

(c)           the amendment of the Indenture by a supplemental indenture in circumstances where the consent of any Noteholder (i) is required or (ii) is not required and such amendment materially adversely affects the interests of the Certificateholders;

 

(d)           the amendment of the Administration Agreement, except to cure any ambiguity or to amend or supplement any provision in a manner or to add any provision that would not materially adversely affect the interests of the Certificateholders; or

 

(e)           the appointment pursuant to the Indenture of a successor Note Registrar, Paying Agent or Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar, or the consent to the assignment by the Note Registrar, Paying Agent, Indenture Trustee or Certificate Registrar of its respective obligations under the Indenture or this Agreement, as applicable.

 

Section 4.02.  Action by Certificateholders with Respect to Certain Matters.  The Owner Trustee may not (i) pursuant to Article Seven of the Sale and Servicing Agreement, remove the Servicer or appoint a Successor Servicer or (ii) remove the Administrator pursuant to Section 1.09 of the Administration Agreement unless Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests direct the Owner Trustee to take such action (a) upon the occurrence of the termination of the Servicer pursuant to Article Seven of the Sale and Servicing Agreement and (b) subsequent to the payment in full of the Notes.

 

Section 4.03.  Action by Certificateholders with Respect to Bankruptcy.  The Owner Trustee shall not have the power to commence a voluntary Proceeding under any Insolvency Law relating to the Issuer unless each Certificateholder approves of such commencement in writing in advance and delivers to the Owner Trustee a certificate certifying that such Certificateholder reasonably believes that the Issuer is insolvent.

 

 

 

  

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Section 4.04.  Restrictions on Certificateholders’ Power.  The Certificateholders shall not direct the Owner Trustee to take or refrain from taking any action if such action or inaction would be contrary to any obligation of the Issuer or the Owner Trustee under any Basic Document or would be contrary to Section 2.03, nor shall the Owner Trustee be obligated to follow any such direction, if given.

 

Section 4.05.  Majority Control.  Except as expressly provided herein, (i) any action that may be taken by the Certificateholders under this Agreement may be taken by the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests and (ii) any written notice of the Certificateholders delivered pursuant to this Agreement shall be effective if signed by Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests at the time of the delivery of such notice.

 

Section 4.06.  Certain Litigation Matters.  The Owner Trustee shall provide prompt written notice to the Depositor, the Seller and the Servicer of any Proceeding or investigation actually known to a Responsible Officer of the Owner Trustee in any way relating to the Issuer, the Trust Property or any Issuer Basic Document.

 

 

 

  

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ARTICLE FIVE

 

APPLICATION OF TRUST FUNDS; CERTAIN DUTIES

 

Section 5.01.  Application of Trust Funds.

 

(a)           On each Distribution Date, upon receipt from the Servicer of an Investor Report pursuant to Section 3.10 of the Sale and Servicing Agreement, the Owner Trustee shall, directly or through a Paying Agent, distribute or cause to be distributed, to the Certificateholders, in proportion to each Certificateholder’s Certificate Percentage Interest, available amounts deposited in the Collection Account on such Distribution Date pursuant to Section 4.04 of the Sale and Servicing Agreement and payable to the Certificateholders pursuant to Section 2.08 of the Indenture.

 

(b)           On each Distribution Date, the Owner Trustee shall, directly or through a Paying Agent, send to each Certificateholder of record the related Investor Report provided to the Owner Trustee by the Servicer pursuant to Section 3.10 of the Sale and Servicing Agreement.

 

(c)           In the event that any withholding tax is imposed on the Issuer’s payment (or allocations of income) to a Certificateholder, such tax shall reduce the amount otherwise distributable to such Certificateholder in accordance with this Section.  The Owner Trustee and each Paying Agent are hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders sufficient funds for the payment of any such withholding tax that is legally owed by the Issuer (but such authorization shall not prevent the Owner Trustee or any Paying Agent from contesting any such tax in appropriate Proceedings and withholding payment of such tax, if permitted by Applicable Law, pending the outcome of such Proceedings, it being understood that neither the Owner Trustee nor any Paying Agent shall have any duty to contest such amounts).  The amount of any withholding tax imposed with respect to a Certificateholder shall be treated as cash distributed to such Certificateholder at the time it is withheld by the Issuer for remittance to the appropriate taxing authority.  If the Owner Trustee or a Paying Agent determines that there is a possibility that withholding tax is payable with respect to a distribution (such as a distribution to a non-U.S. Certificateholder), the Owner Trustee or any Paying Agent may, in its sole discretion, withhold such amounts in accordance with this Section.  If a Certificateholder wishes to apply for a refund of any such withholding tax, the Owner Trustee and each Paying Agent shall reasonably cooperate with such Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the Owner Trustee and each Paying Agent for any out-of-pocket expenses incurred, as applicable.

 

Section 5.02.  Method of Payment.  Subject to Section 9.01(c), distributions required to be made to Certificateholders on any Distribution Date shall be made by the Owner Trustee or a Paying Agent to each Certificateholder of record on the related Record Date by wire transfer, in immediately available funds, to the account of such Certificateholder at a bank or other entity having appropriate facilities therefor, if such Certificateholder shall have provided to the Certificate Registrar and the Paying Agent appropriate written instructions at least five Business Days prior to such Distribution Date and such Certificateholder is the Depositor or an Affiliate thereof or, if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register.  Notwithstanding the foregoing, the final

 

 

 

  

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distribution in respect of any Certificate will be payable only upon presentation and surrender of such Certificate at the office or agency maintained for that purpose by the Certificate Registrar pursuant to Section 3.08.

 

Section 5.03.  No Segregation of Monies; No Interest.  Subject to Section 5.01, monies received by the Owner Trustee hereunder need not be segregated in any manner except to the extent required by the Basic Documents or Applicable Law, and may be deposited under such general conditions as may be prescribed by Applicable Law and the Owner Trustee shall not be liable for any interest thereon.

 

Section 5.04.  Accounting and Reports to Certificateholders, the IRS and Others.  The Owner Trustee shall, upon receipt of and based on information provided by the Seller or the Servicer, (i) maintain (or cause to be maintained) the books of the Issuer on the basis of a fiscal year ending December 31 and, based on the accrual method of accounting, (ii) deliver to each Certificateholder, as may be required by the Code and applicable Treasury Regulations, such information as may be required (including Schedule K-1) to enable such Certificateholder to prepare its federal and State income tax returns, (iii) file such tax returns relating to the Issuer (including a partnership information return, IRS Form 1065, if required) and make such elections as may from time to time be required or appropriate under any applicable State or federal statute or rule or regulation thereunder so as to maintain the Issuer’s characterization as a partnership, if so characterized, for federal income tax purposes, (iv) cause such tax returns to be signed in the manner required by Applicable Law and (v) collect or cause to be collected any withholding tax as described in and in accordance with Section 5.01(c) with respect to income or distributions to Certificateholders.  The Owner Trustee, on behalf of the Issuer, shall elect under Section 1278 of the Code to include in income currently any market discount that accrues with respect to the Receivables.  The Owner Trustee, on behalf of the Issuer, shall not make the election provided under Section 754 of the Code.

 

The Owner Trustee may satisfy its obligations with respect to this Section and Section 5.01(c) by retaining, at the expense of the Seller, Accountants selected by the Seller.  The Owner Trustee may require the Accountants to provide to the Owner Trustee, on or before December 31, 2013, a letter in form and substance satisfactory to the Owner Trustee as to whether any federal tax withholding on the Certificates is then required and, if required, the procedures to be followed with respect thereto to comply with the requirements of the Code.  The Accountants shall be required to update such letter in each instance that any additional tax withholding is subsequently required or any previously required tax withholding shall no longer be required.  The Owner Trustee shall be deemed to have discharged its obligations pursuant to this Section and Section 5.01(c) upon its retention of the Accountants, and the Owner Trustee shall not have any liability with respect to the default, negligence or misconduct of the Accountants.  The Owner Trustee shall be entitled to rely on and shall be fully protected in so relying, upon the letter, referred to in this paragraph, from the Accountants and shall have no duty or obligation to verify the accuracy of the contents of such letter.

 

Section 5.05.  Signature on Returns; Tax Matters Partner.

 

(a)           The Owner Trustee shall sign, on behalf of the Issuer, the tax returns of the Issuer upon receipt of such completed tax returns.

 

 

 

  

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(b)           In the event that the Issuer is required to be treated as a partnership for federal income tax purposes, Daimler Retail Receivables, or the Holder of Certificates having the greatest Certificate Percentage Interest, in the event that Daimler Retail Receivables no longer owns any Certificates, shall be designated the “tax matters partner” of the Issuer pursuant to Section 6231(a)(7)(A) of the Code and applicable Treasury Regulations.

 

 

 

  

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ARTICLE SIX

 

AUTHORITY AND DUTIES OF OWNER TRUSTEE

 

Section 6.01.  General Authority.  The Owner Trustee is authorized and directed to execute and deliver each Issuer Basic Document and each certificate or other document attached as an exhibit to or contemplated by any Issuer Basic Document and any amendment or other agreement or instrument, in each case in such form as the Depositor shall approve, as evidenced conclusively by the Owner Trustee’s execution thereof.  In addition to the foregoing, the Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Issuer pursuant to the Basic Documents.  The Owner Trustee is further authorized from time to time to take such action as the Administrator or Certificateholders recommends with respect to the Basic Documents.

 

Section 6.02.  General Duties.

 

(a)           It shall be the duty of the Owner Trustee to discharge (or cause to be discharged) all of its responsibilities pursuant to the terms of this Agreement and to administer the Issuer for the benefit of the Certificateholders, subject to the Basic Documents and in accordance with the provisions of this Agreement.  Notwithstanding the foregoing, the Owner Trustee shall be deemed to have discharged its duties and responsibilities hereunder and to the extent expressly provided for under the other Basic Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Owner Trustee or the Issuer hereunder or under any other Basic Document, and the Owner Trustee shall not be held liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement.

 

(b)           The Owner Trustee shall cooperate with the Administrator in carrying out the Administrator’s obligation to qualify and preserve the Issuer’s qualification to do business in each jurisdiction, if any, in which such qualification is or shall be necessary to protect the validity and enforceability of the Indenture, the Notes, the Receivables and any other instrument and agreement included in the Trust Property; provided that the Owner Trustee may rely on advice of counsel with respect to such obligation.

 

Section 6.03.  Action Upon Instruction.

 

(a)           Subject to Article Four, and in accordance with the terms of the Issuer Basic Documents, the Certificateholders may, by written instruction, direct the Owner Trustee in the management of the Issuer.  Such direction may be exercised at any time by written instruction of the Certificateholders pursuant to Article Four.  In addition, the Administrator may direct the Owner Trustee in the management of the Issuer in accordance with Section 6.01 and the Administration Agreement.

 

(b)           The Owner Trustee shall not be required to take any action under this Agreement or any other Basic Document if the Owner Trustee shall have reasonably determined, or shall have been advised by counsel, that such action is likely to result in liability on the part of the

 

 

 

  

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Owner Trustee or is contrary to the terms of any Basic Document or is otherwise contrary to Applicable Law.

 

(c)           Whenever the Owner Trustee is unable to decide between alternative courses of action permitted or required by the terms of any Basic Document or in the event that the Owner Trustee is unsure as to the application of any provision of any Basic Document or any such provision is ambiguous as to its application, or is, or appears to be, in conflict with any other applicable provision, or in the event that this Agreement permits any determination by the Owner Trustee or is silent or is incomplete as to the course of action that the Owner Trustee is required to take with respect to a particular set of facts, the Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders of record as of the preceding Record Date requesting instruction as to the course of action to be adopted, and to the extent the Owner Trustee acts in good faith in accordance with any written instruction of Holders of Certificates evidencing at least 51% of the Certificate Percentage Interests received, the Owner Trustee shall not be liable on account of such action to any Person.  If the Owner Trustee shall not have received appropriate written instruction within ten days of such notice (or within such shorter period of time as reasonably may be specified in such notice or may be necessary under the circumstances) it may, but shall be under no duty to, take or refrain from taking such action, not inconsistent with the Basic Documents as it shall deem to be in the best interests of the Certificateholders, and shall have no liability to any Person for such action or inaction.

 

(d)           Notwithstanding the foregoing, the right of the Depositor or Certificateholders to take any action affecting the Trust Property shall be subject to the rights of the Indenture Trustee under the Indenture.

 

Section 6.04.  No Duties Except as Specified in this Agreement or in Instructions.  The Owner Trustee shall not have any duty or obligation to manage, make any payment with respect to, register, record, sell, dispose of or otherwise deal with the Trust Property, or to otherwise take or refrain from taking any action under, or in connection with, any document contemplated hereby to which the Owner Trustee or the Issuer is a party, except as expressly provided by the terms of this Agreement or in any document or written instruction received by the Owner Trustee pursuant to Section 6.03; and no implied duties or obligations shall be read into any Basic Document against the Owner Trustee.  The Owner Trustee shall have no responsibility for filing any financing or continuation statement in any public office at any time or to otherwise perfect or maintain the perfection of any Lien granted to it hereunder or to prepare or file any Commission filing for the Issuer or to record any Basic Document.  The Owner Trustee nevertheless agrees that it will, at its own cost and expense, promptly take all action as may be necessary to discharge any Liens on any part of the Trust Property that result from actions by, or claims against, the Owner Trustee in its individual capacity that are not related to the ownership or the administration of the Trust Property.

 

Section 6.05.  No Action Except Under Specified Documents or Instructions.  The Owner Trustee shall not manage, control, use, sell, dispose of or otherwise deal with any part of the Trust Property except in accordance with (i) the powers granted to and the authority conferred upon the Owner Trustee pursuant to this Agreement, (ii) the Basic Documents and (iii) any document or instruction delivered to the Owner Trustee pursuant to Section 6.03.

 

 

 

  

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Section 6.06.  Restrictions.  The Owner Trustee shall not take any action that (i) is inconsistent with the purposes of the Issuer set forth in Section 2.03 or (ii) to the actual knowledge of a Responsible Officer of the Owner Trustee, would (a) affect the treatment of the Notes as indebtedness for federal income or State income or franchise tax purposes, (b) be deemed to cause a taxable exchange of the Notes for federal income or State income or franchise tax purposes or (c) cause the Issuer or any portion thereof to be taxable as an association or publicly traded partnership taxable as a corporation for federal income or State income or franchise tax purposes.  The Certificateholders, the Administrator and the Servicer shall not direct the Owner Trustee to take any action that would violate the provisions of this Section or any other provision of any Basic Document.  Notwithstanding anything herein to the contrary, the Depositor, the Servicer and their respective Affiliates may maintain normal commercial banking relationships with the Owner Trustee and its Affiliates.

 

Section 6.07.  Notice to Administrator of Repurchase Requests.  Not later than the fifth day of each calendar month (or, if such day is not a Business Day, the immediately following Business Day), beginning August 5, 2013, the Owner Trustee shall provide to the Administrator a notice in substantially the form of Exhibit C with respect to any requests received by the Owner Trustee during the immediately preceding calendar month (or, in the case of the initial notice, since the Closing Date) that any Receivable be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.

 

 

 

  

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ARTICLE SEVEN

 

THE OWNER TRUSTEE

 

Section 7.01.  Acceptance of Duties.  The Owner Trustee accepts the trusts hereby continued and agrees to perform its duties with respect to such trusts, but only upon the terms of this Agreement.  The Owner Trustee also agrees to disburse all monies actually received by it constituting part of the Trust Property upon the terms set forth in the Basic Documents.  The Owner Trustee shall not be answerable or accountable hereunder or under any other Basic Document under any circumstances, except (i) for its own willful misconduct, bad faith or negligence or (ii) in the case of the inaccuracy of any representation or warranty contained in Section 7.03 expressly made by the Owner Trustee, in its individual capacity.  In particular, but not by way of limitation (and subject to the exceptions set forth in the preceding sentence):

 

(a)           the Owner Trustee shall not be liable for any error of judgment made in good faith by the Owner Trustee;

 

(b)           the Owner Trustee shall not be liable with respect to any action taken or omitted to be taken in good faith by it in accordance with the provisions of this Agreement at the instructions of the Administrator or the Certificateholders;

 

(c)           no provision of the Basic Documents shall require the Owner Trustee to expend or risk its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder or in the exercise of any of its rights or powers hereunder or under any other Basic Document if the Owner Trustee shall have reasonable grounds for believing that repayment of such funds or adequate indemnity against such risk or liability is not reasonably assured or provided to it;

 

(d)           under no circumstances shall the Owner Trustee be liable for indebtedness evidenced by or arising under any Basic Document, including the principal of and interest on the Notes or any amounts payable on the Certificates;

 

(e)           the Owner Trustee shall not be responsible for or in respect of the validity or sufficiency of this Agreement or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value or validity of any of the Trust Property, or for or in respect of the validity or sufficiency of the Basic Documents, other than the signature and the certificate of authentication of the Owner Trustee on the Certificates, and the Owner Trustee shall in no event assume or incur any liability, duty or obligation to any Securityholder, other than as expressly provided for herein;

 

(f)           the Owner Trustee shall not be liable for the default or misconduct of the Administrator, the Depositor, any Certificateholder, the Indenture Trustee, the Servicer or the Seller under any Basic Document or otherwise, and the Owner Trustee shall have no obligation or liability to perform the obligations of the Issuer under the Basic Documents that are required to be performed by the Administrator under the Administration Agreement, the Indenture Trustee under the Indenture or the Seller, the Servicer or the Depositor under the Sale and Servicing Agreement;

 

 

 

  

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(g)           the Owner Trustee shall be under no obligation to exercise any of the rights or powers vested in it by this Agreement, or to institute, conduct or defend any litigation under this Agreement or otherwise or in relation to any Basic Document, at the request, order or direction of any Certificateholders, unless such Certificateholders have offered to the Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the Owner Trustee therein or thereby; and the right of the Owner Trustee to perform any discretionary act enumerated in any Basic Document shall not be construed as a duty, and the Owner Trustee shall not be answerable other than for its negligence, bad faith or willful misconduct in the performance of any such act;

 

(h)           the Owner Trustee shall have no responsibility for the accuracy of any information provided to Certificateholders or any other individual or entity that has been obtained from, or provided to the Owner Trustee by, any other Person; and

 

(i)           in the absence of negligence or bad faith on its part, the Owner Trustee may conclusively rely upon certificates or Opinions of Counsel furnished to the Owner Trustee and conforming to the requirements of this Agreement in determining the truthfulness of the statements and the correctness of the opinions contained therein; provided, however, that the Owner Trustee shall have examined such certificates or Opinions of Counsel so as to determine compliance of the same with the requirements of this Agreement.

 

Section 7.02.  Furnishing of Documents.  The Owner Trustee shall furnish to the Certificateholders, promptly upon receipt of a written request therefor, and at the expense of the related Certificateholders, (i) copies of the Basic Documents and (ii) copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the Owner Trustee under the Basic Documents.

 

Section 7.03.  Representations and Warranties.  The Owner Trustee hereby represents and warrants to the Depositor and the Certificateholders, that:

 

(a)           It is a national banking association that  meets the eligibility criteria set forth in Section 10.01; and it has all requisite corporate power and authority to execute, deliver and perform its obligations under this Agreement.

 

(b)           It has taken all corporate action necessary to authorize the execution and delivery by it of this Agreement, and this Agreement will be executed and delivered by one of its officers who is duly authorized to execute and deliver this Agreement on its behalf.

 

(c)           Neither the execution nor the delivery by it of this Agreement, nor the consummation by it of the transactions contemplated hereby, nor compliance by it with any of the terms or provisions hereof will contravene any federal or Delaware law, governmental rule or regulation governing the banking or trust powers of the Owner Trustee or any judgment or order binding on it, constitute any default under its charter

 

 

 

  

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documents or bylaws or any indenture, mortgage, contract, agreement or instrument to which it is a party or by which any of its properties may be bound.

 

Section 7.04.  Reliance; Advice of Counsel.

 

(a)           The Owner Trustee shall incur no liability to anyone in acting upon any signature, instrument, notice, resolution, request, consent, order, certificate, report, opinion, bond or other document or paper believed by it to be genuine and believed by it to be signed by the proper party or parties.  The Owner Trustee may accept a certified copy of a resolution of the board of directors or other governing body of any corporate party as conclusive evidence that such resolution has been duly adopted by such body and that the same is in full force and effect.  As to any fact or matter the method of determination of which is not specifically prescribed herein, the Owner Trustee may for all purposes hereof rely on a certificate, signed by any Authorized Officer of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the Owner Trustee for any action taken or omitted to be taken by it in good faith in reliance thereon.

 

(b)           In the exercise or administration of the trusts hereunder and in the performance of its duties and obligations under this Agreement and to the extent expressly provided for under the other Issuer Basic Documents, the Owner Trustee may (i) act directly or through its agents or attorneys pursuant to agreements entered into with any of them, and the Owner Trustee shall not be liable for the conduct or misconduct of such agents or attorneys if such agents or attorneys shall have been selected by the Owner Trustee with reasonable care and (ii) consult with counsel, accountants and other skilled Persons to be selected with reasonable care and employed by it.  The Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the written opinion or advice of any such counsel, accountants or other such Persons and not contrary to any Basic Document.

 

Section 7.05.  Not Acting in Individual Capacity.  Except as otherwise provided in this Article, in accepting the trusts hereby created, Wilmington Trust, National Association acts solely as Owner Trustee hereunder and not in its individual capacity, and all Persons having any claim against the Owner Trustee by reason of the transactions contemplated by the Basic Documents shall look only to the Trust Property for payment or satisfaction thereof.

 

Section 7.06.  Owner Trustee Not Liable for Basic Documents or Certificates.  The recitals contained herein and in the Certificates (other than the signature and the certificate of authentication of the Owner Trustee on the Certificates) shall be taken as the statements of the Depositor, and the Owner Trustee assumes no responsibility for the correctness thereof.  The Owner Trustee makes no representations as to the validity or sufficiency of any Basic Document or the Certificates (in each case other than the signature and the certificate of authentication of the Owner Trustee on the Certificates and the representations and warranties in Section 7.03) or the Notes.  The Owner Trustee shall at no time have any responsibility or liability for or with respect to the legality, validity and enforceability of any Receivable, or the perfection and priority of any security interest created by any Receivable in any Financed Vehicle or the maintenance of any such perfection and priority, or for or with respect to the sufficiency of the Trust Property or its ability to generate the payments to be distributed to the Certificateholders under this Agreement or to the Noteholders under the Indenture, including the existence,

 

 

 

  

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condition and ownership of any Financed Vehicle; the existence and enforceability of any insurance thereon; the existence and contents of any Receivable on any computer or other record thereof; the validity of the assignment of any Receivable to the Issuer or of any intervening assignment; the completeness of any Receivable; the performance or enforcement of any Receivable; the compliance by the Depositor, the Seller or the Servicer with any warranty or representation made under any Basic Document or the accuracy of any such warranty or representation; or for any action of the Administrator, the Indenture Trustee or the Servicer taken in the name of the Owner Trustee.

 

Section 7.07.  Owner Trustee May Own Securities.  The Owner Trustee in its individual or any other capacity may become a Securityholder or pledgee of Certificates or Notes and may deal with the Depositor, the Administrator, the Indenture Trustee, the Seller and the Servicer in banking transactions with the same rights as it would have if it were not Owner Trustee.

 

 

 

  

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ARTICLE EIGHT

 

COMPENSATION AND INDEMNIFICATION OF OWNER TRUSTEE

 

Section 8.01.  Owner Trustee’s Fees and Expenses.  The Owner Trustee shall receive as compensation for its services hereunder such fees as have been separately agreed upon before the date hereof between the Servicer or Administrator and the Owner Trustee, and upon the formation of the Issuer, the Owner Trustee shall be entitled to be reimbursed, except as otherwise provided in the Basic Documents, by the Servicer or Administrator for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, representatives, experts and counsel as the Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder.

 

Section 8.02.  Indemnification.  The Depositor shall be liable as primary obligor for, and shall indemnify the Indemnified Parties from and against, any and all Expenses, which may at any time be imposed on, incurred by, or asserted against the Owner Trustee or any other Indemnified Party in any way relating to or arising out of the Basic Documents, the Trust Property, the administration of the Trust Property or the action or inaction of the Owner Trustee hereunder; provided, however, that the Depositor shall not be liable for or required to indemnify an Indemnified Party from and against Expenses arising or resulting from any of the matters described in the third sentence of Section 7.01.  To the extent not paid, or caused to be paid, by the Depositor or the Administrator, any indemnity due and owing the Owner Trustee shall be paid in accordance with Section 2.08 of the Indenture.  The indemnities contained in this Section shall survive the resignation or termination of the Owner Trustee or the termination of this Agreement.  In the event of any claim, action or Proceeding for which indemnity will be sought pursuant to this Section, the Owner Trustee’s choice of legal counsel shall be subject to the approval of the Depositor, which approval shall not be unreasonably withheld.

 

Section 8.03.  Payments to the Owner Trustee.  Any amounts paid to the Owner Trustee pursuant to this Article from assets that are part of the Trust Property shall be deemed not to be a part of the Trust Property immediately after such payment.

 

 

 

  

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ARTICLE NINE

 

TERMINATION OF TRUST AGREEMENT

 

Section 9.01.  Termination of Trust Agreement.

 

(a)           This Agreement (other than the provisions of Article Eight) shall terminate and be of no further force or effect and the Issuer shall dissolve and wind-up upon the earlier of (i) the payment to the Servicer, the Trustees and the Securityholders of all amounts required to be paid to them pursuant to the Indenture, the Sale and Servicing Agreement and Article Five of this Agreement, (ii) the Distribution Date next succeeding the month which is one year after the maturity or other liquidation of the last Receivable and the disposition of any amounts received upon liquidation of any property remaining in the Issuer or (iii) upon the purchase of the Receivables by the Servicer in connection with an Optional Purchase and retirement of the Securities.  The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not (i) operate to dissolve or terminate this Agreement or the Issuer, (ii) entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any Proceeding in any court for a partition or winding up of all or any part of the Issuer or the Trust Property or (iii) otherwise affect the rights, obligations and liabilities of the parties hereto.

 

(b)           Except as provided in Section 9.01(a), neither the Depositor nor any Certificateholder shall be entitled to revoke, dissolve or terminate the Issuer.

 

(c)           Notice of any termination of the Issuer, specifying the Distribution Date upon which Certificateholders shall surrender their Certificates to the Owner Trustee for payment of the final distribution and cancellation, shall be given by the Owner Trustee to Certificateholders mailed within five Business Days of receipt of notice of such termination from the Servicer, stating (i) the Distribution Date upon or with respect to which final payment of the Certificates shall be made upon presentation and surrender of the Certificates at the office of the Owner Trustee therein designated, (ii) the amount of any such final payment and (iii) that the Record Date otherwise applicable to such Distribution Date is not applicable and that payments are being made only upon presentation and surrender of the Certificates at the office of the Owner Trustee therein specified.  The Owner Trustee shall give such notice to the Certificate Registrar (if other than the Owner Trustee) and the Paying Agent at the time such notice is given to Certificateholders.  Upon presentation and surrender of the Certificates, the Owner Trustee shall cause to be distributed to Certificateholders, subject to Section 3808 of the Delaware Statutory Trust Act, amounts distributable on such Distribution Date pursuant to Section 5.01.

 

(d)           In the event that all of the Certificateholders shall not surrender their Certificates for cancellation within six months after the date specified in the above mentioned written notice, the Owner Trustee shall give a second written notice to the remaining Certificateholders to surrender their Certificates for cancellation and receive the final distribution with respect thereto.  If within one year after the second notice all the Certificates shall not have been surrendered for cancellation, the Owner Trustee may take appropriate steps, or may appoint an agent to take appropriate steps, to contact the remaining Certificateholders concerning surrender of their Certificates and the cost thereof shall be paid out of the funds and other assets that shall remain subject to this Agreement.  Subject to applicable escheat laws, any funds remaining in the Issuer

 

 

 

  

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after exhaustion of such remedies shall be distributed by the Owner Trustee to the Seller, as Certificateholder.

 

(e)           Following the dissolution and the winding up of the Issuer, in accordance with Section 3808 of the Delaware Statutory Trust Act, the Depositor shall instruct the Owner Trustee in writing, and the Owner Trustee, at the expense of the Depositor, shall cause the Certificate of Trust to be cancelled by filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810(d) of the Delaware Statutory Trust Act and the Issuer and this Agreement (other than Article Eight) shall terminate and be of no further force or effect.

 

 

 

  

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ARTICLE TEN

 

SUCCESSOR AND ADDITIONAL OWNER TRUSTEES

 

Section 10.01.  Eligibility Requirements for Owner Trustee.  The Owner Trustee shall at all times be (i) a corporation with trust powers organized under the laws of the United States or any State and satisfying the provisions of Section 3807(a) of the Delaware Statutory Trust Act, (ii) authorized to exercise corporate trust powers that has (or has a parent that has) a combined capital and surplus of at least $50,000,000 and is subject to supervision or examination by federal or State authorities and (iii) having (or having a parent that has) time deposits that are rated investment grade by Fitch and Standard & Poor’s or, if it (or its parent) does not have such ratings, otherwise be acceptable to each Rating Agency.  If such corporation shall publish reports of condition at least annually pursuant to Applicable Law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section, the combined capital and surplus of such corporation shall be deemed to be its combined capital and surplus as set forth in its most recent report of condition so published.  If at any time the Owner Trustee shall cease to be eligible in accordance with the provisions of this Section, the Owner Trustee shall resign immediately in the manner and with the effect specified in Section 10.02.

 

Section 10.02.  Resignation or Removal of Owner Trustee.  The Owner Trustee may at any time resign and be discharged from the trusts hereby created by giving written notice thereof to the Administrator and the Depositor, and will provide to the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligation under the Exchange Act with respect to the resignation of the Owner Trustee.  Upon receiving such notice of resignation, the Administrator shall promptly appoint a successor Owner Trustee acceptable to the Depositor by written instrument, in duplicate, one copy of which instrument shall be delivered to the resigning Owner Trustee and one copy to the successor Owner Trustee.  If no successor Owner Trustee shall have been so appointed and have accepted appointment within 30 days after the giving of such notice of resignation, the resigning Owner Trustee may petition any court of competent jurisdiction for the appointment of a successor Owner Trustee.  Neither the Administrator nor the Depositor shall owe the outgoing Owner Trustee any expenses associated with the resignation of the outgoing Owner Trustee and the outgoing Owner Trustee shall not be responsible for any expenses associated with the appointment of a successor Owner Trustee.

 

If at any time the Owner Trustee shall (i) cease to be eligible in accordance with Section 10.01 and shall fail to resign after written request therefor by the Administrator, or if at any time the Owner Trustee shall be legally unable to act, (ii) be adjudged bankrupt or insolvent, or a receiver of the Owner Trustee or of its property shall be appointed, or any public officer shall take charge or control of the Owner Trustee or of its property or affairs for the purpose of rehabilitation, conservation or liquidation, (iii) fail to comply with any of its obligations under Section 10.02, 10.04 or 11.03, during the period that the Depositor is required to file Exchange Act Reports with respect to the Issuer and such failure is not remedied within the lesser of ten calendar days and the period of time in which the related Exchange Act Report is required to be filed (without taking into account any extensions) or (iv) otherwise become incapable of acting, then the Administrator or the Depositor may remove the Owner Trustee.  If the Administrator or Depositor shall remove the Owner Trustee under the authority of the immediately preceding

 

 

 

  

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sentence, the Administrator shall promptly appoint a successor Owner Trustee acceptable to the Depositor by written instrument, in duplicate, one copy of which instrument shall be delivered to the outgoing Owner Trustee so removed and one copy to the successor Owner Trustee, and shall pay all fees and expenses owed to the outgoing Owner Trustee.

 

Any resignation or removal of the Owner Trustee and appointment of a successor Owner Trustee pursuant to any of the provisions of this Section shall not become effective until acceptance of appointment by the successor Owner Trustee pursuant to Section 10.03 and payment of all fees and expenses owed to the outgoing Owner Trustee.

 

Section 10.03.  Successor Owner Trustee.  Any successor Owner Trustee appointed pursuant to Section 10.02 shall execute, acknowledge and deliver to the Administrator and to its predecessor Owner Trustee an instrument accepting such appointment under this Agreement and deliver to the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligations under the Exchange Act with respect to the successor Owner Trustee, and thereupon, subject to the payment of all fees and expenses owed to the predecessor Owner Trustee, the resignation or removal of the predecessor Owner Trustee shall become effective, and such successor Owner Trustee, without any further act, deed or conveyance, shall become fully vested with all the rights, powers, duties and obligations of its predecessor under this Agreement, with like effect as if originally named as Owner Trustee.  The predecessor Owner Trustee shall upon payment of its fees and expenses deliver to the successor Owner Trustee all documents and statements and monies held by it under this Agreement and the Administrator and the predecessor Owner Trustee shall execute and deliver such instruments and do such other things as may reasonably be required for fully and certainly vesting and confirming in the successor Owner Trustee all such rights, powers, duties and obligations.

 

No successor Owner Trustee shall accept appointment as provided in this Section unless at the time of such acceptance such successor Owner Trustee shall be eligible pursuant to Section 10.01.  Any successor Owner Trustee shall promptly file an amendment to the Certificate of Trust as required by the Delaware Statutory Trust Act.

 

Upon acceptance of appointment by a successor Owner Trustee pursuant to this Section, the Administrator shall mail notice thereof to the Depositor, the Certificateholders, the Indenture Trustee and the Rating Agencies.  If the Administrator shall fail to mail such notice within ten days after acceptance of such appointment by the successor Owner Trustee, the successor Owner Trustee shall cause such notice to be mailed at the expense of the Administrator.

 

Section 10.04.  Merger or Consolidation of Owner Trustee.

 

(a)           If the Owner Trustee consolidates with, merges or converts into, or transfers all or substantially all its corporate trust business or assets to, another entity, the resulting, surviving or transferee corporation or banking association without any further act, except the filing of an amendment to the Certificate of Trust, if required under the Delaware Statutory Trust Act, shall be the successor Owner Trustee; provided, however, that such corporation or banking association must be otherwise qualified and eligible under Section 10.01.  The Owner Trustee shall (i) provide the Rating Agencies with written notice as soon as practicable after a public

 

 

 

  

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announcement is made regarding any such transaction, (ii) file an amendment to the Certificate of Trust as required by Section 10.03 (if required under the Delaware Statutory Trust Act) and (iii) provide the Depositor in writing and in form and substance reasonably satisfactory to the Depositor, all information reasonably requested by the Depositor in order to comply with its reporting obligation under the Exchange Act with respect to the successor Owner Trustee.

 

(b)           If any of the Certificates shall have been authenticated but not delivered at the time such successor or successors by consolidation, merger or conversion to the Owner Trustee shall succeed to the trusts created by this Agreement, any such successor to the Owner Trustee may adopt the certificate of authentication of any predecessor trustee and deliver such Certificates so authenticated.  If any of the Certificates shall not have been authenticated upon such succession, any such successor to the Owner Trustee may authenticate such Certificates either in the name of any predecessor trustee or in the name of the successor to the Owner Trustee.  In all such cases such certificates shall have the full force which the Certificates or this Agreement provide that the certificate of the Owner Trustee shall have.

 

Section 10.05.  Appointment of Co-Trustee or Separate Trustee.  Notwithstanding any other provision of this Agreement, at any time, for the purpose of meeting any legal requirement of any jurisdiction in which any part of the Trust Property or any Financed Vehicle may at the time be located, the Administrator and the Owner Trustee acting jointly shall have the power and shall execute and deliver all instruments to appoint one or more Persons approved by the Administrator and Owner Trustee to act as co-trustee, jointly with the Owner Trustee, or as separate trustee or separate trustees, of all or any part of the Trust Property, and to vest in such Person, in such capacity and for the benefit of the Certificateholders, such title to the Trust Property or any part thereof and, subject to the other provisions of this Section, such powers, duties, obligations, rights and trusts as the Administrator and the Owner Trustee may consider necessary or desirable.  If the Administrator shall not have joined in such appointment within 15 days after the receipt by it of a request so to do, the Owner Trustee alone shall have the power to make such appointment.  No co-trustee or separate trustee under this Agreement shall be required to meet the terms of eligibility as a successor Owner Trustee pursuant to Section 10.01, except that such co-trustee or successor trustee shall be acceptable to each Rating Agency, and no notice of the appointment of any co-trustee or separate trustee shall be required pursuant to Section 10.03.

 

Each separate trustee and co-trustee shall, to the extent permitted by Applicable Law, be appointed and act subject to the following provisions and conditions:

 

(a)           all rights, powers, duties and obligations conferred or imposed upon the Owner Trustee shall be conferred or imposed upon and exercised or performed by the Owner Trustee and such separate trustee or co-trustee jointly (it being understood that such separate trustee or co-trustee is not authorized to act separately without the Owner Trustee joining in such act), except to the extent that under any Applicable Law of any jurisdiction in which any particular act or acts are to be performed, the Owner Trustee shall be incompetent or unqualified to perform such act or acts, in which event such rights, powers, duties and obligations (including the holding of title to the Trust Property or any portion thereof in any such jurisdiction) shall be exercised and performed singly by such separate trustee or co-trustee, but solely at the direction of the Owner Trustee;

 

 

 

  

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(b)           no trustee under this Agreement shall be personally liable by reason of any act or omission of any other trustee under this Agreement; and

 

(c)           the Administrator and the Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee.

 

Any notice, request or other writing given to the Owner Trustee shall be deemed to have been given to each of the then-separate trustees and co-trustees, as effectively as if given to each of them.  Every instrument appointing any separate trustee or co-trustee shall refer to this Agreement and the conditions of this Article.  Each separate trustee and co-trustee, upon its acceptance of the trusts conferred, shall be vested with the estates or property specified in its instrument of appointment, either jointly with the Owner Trustee or separately, as may be provided therein, subject to all the provisions of this Agreement, specifically including every provision of this Agreement relating to the conduct of, affecting the liability of, or affording protection to, the Owner Trustee.  Each such instrument shall be filed with the Owner Trustee and a copy thereof given to the Administrator.

 

Any separate trustee or co-trustee may at any time appoint the Owner Trustee as its agent or attorney-in-fact with full power and authority, to the extent not prohibited by Applicable Law, to do any lawful act under or in respect of this Agreement on its behalf and in its name.  If any separate trustee or co-trustee shall die, become incapable of acting, resign or be removed, all of its estates, properties, rights, remedies and trusts shall vest in and be exercised by the Owner Trustee, to the extent permitted by Applicable Law, without the appointment of a new or successor co-trustee or separate trustee.

 

 

 

  

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ARTICLE ELEVEN

 

REGULATION AB

 

Section 11.01.  Intent of the Parties; Reasonableness.  The parties hereto acknowledge and agree that the purpose of this Article is to facilitate compliance by the Depositor with the provisions of Regulation AB and related rules and regulations of the Commission.  The Depositor shall not exercise its right to request delivery of information or other performance under these provisions other than in good faith, or for purposes other than the Depositor’s compliance with the Securities Act, the Exchange Act and the rules and regulations of the Commission thereunder (or the provision in a private offering of disclosure comparable to that required under the Securities Act).  The Owner Trustee agrees to cooperate in good faith with any reasonable request by the Depositor for information regarding the Owner Trustee which is required in order to enable the Depositor to comply with the provisions of Regulation AB, including Items 1109(a), 1109(b), 1117 and 1119 of Regulation AB as such items relate to the Owner Trustee or to the Owner Trustee’s obligations under this Agreement.

 

Section 11.02.  Representations and Warranties.  The Owner Trustee represents that:

 

(i)  there are no affiliations, relating to the Owner Trustee with respect to any Item 1119 Party;

 

(ii)  other than the transactions contemplated by the Basic Documents, there are no relationships or transactions with respect to any Item 1119 Party and the Owner Trustee that are outside the ordinary course of business or on terms other than would be obtained in an arm’s-length transaction with an unrelated third party that are material to the investors’ understanding of the Notes; and

 

(iii)  there are no Proceedings pending, or known to be contemplated by Governmental Authorities, against the Owner Trustee, or of which the property of the Owner Trustee is subject, that are material to the Noteholders.

 

Section 11.03.  Information to Be Provided by the Owner Trustee.

 

(a)           For so long as the Depositor is required to report under Regulation AB, the Owner Trustee shall, as promptly as practicable, notify the Depositor, in writing, of (i) the commencement of, a material development in or, if applicable, the termination of, any and all Proceedings against the Owner Trustee or any and all Proceedings of which any property of the Owner Trustee is the subject, that is material to the Noteholders and (ii) any such Proceedings known to be contemplated by Governmental Authorities.  The Owner Trustee shall also notify the Depositor, in writing, as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any material changes to Proceedings described in the preceding sentence.  In addition, the Owner Trustee will furnish to the Depositor, in writing, the necessary disclosure regarding the Owner Trustee describing such Proceedings required to be disclosed under Item 1117 of Regulation AB, for inclusion in reports filed by or on behalf of the Depositor pursuant to the Exchange Act.

 

 

 

  

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(b)           For so long as the Depositor is required to report under Regulation AB, the Owner Trustee shall (i) on or before the fifth Business Day of each January, April, July and October, provide to the Depositor such information regarding the Owner Trustee as is required for the purpose of compliance with Items 1109(a), 1109(b) and 1119 of Regulation AB; provided, however, the Owner Trustee shall not be required to provide such information in the event that there has been no change to the information previously provided by the Owner Trustee to the Depositor, and (ii) as promptly as practicable following notice to or discovery by a Responsible Officer of the Owner Trustee of any changes to such information, provide to the Depositor, in writing, such updated information.  Such information shall include, at a minimum:

 

(A)           the Owner Trustee’s name and form of organization;

 

(B)           a description of the extent to which the Owner Trustee has had prior experience serving as a trustee for asset-backed securities transactions involving auto finance receivables; and

 

(C)           a description of any affiliation between the Owner Trustee and any of the following parties to a Securitization Transaction, as such parties are identified by name to the Owner Trustee by the Depositor in writing in advance of such Securitization Transaction: (1) the sponsor, (2) any depositor, (3) the issuing entity, (4) any servicer or subservicer, (5) any other trustee, (6) any originator, (7) any significant obligor, (8) any enhancement or support provider and (9) any other material party related to any Securitization Transaction.

 

In addition, the Owner Trustee shall provide a description of whether there is, and if so the general character of, any business relationship, agreement, arrangement, transaction or understanding between the Owner Trustee and any above-listed party that is entered into outside the ordinary course of business or is on terms other than would be obtained in an arm’s-length transaction with an unrelated third party, apart from the Securitization Transactions, that currently exists or that existed during the past two years and that is material to an investor’s understanding of the Notes.

 

 

 

  

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ARTICLE TWELVE

 

MISCELLANEOUS

 

Section 12.01.  Supplements and Amendments.

 

(a)           This Agreement may be amended from time to time by the parties hereto, without the consent of any Securityholders, (i) to cure any ambiguity, to correct or supplement any provision herein that may be inconsistent with any other provision herein or in the Prospectus Supplement and (ii) for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of this Agreement; provided, however, that no such amendment (A) may materially adversely affect the interests of any Securityholders and (B) will be permitted unless an Opinion of Counsel is delivered to the Owner Trustee to the effect that such amendment will not cause the Issuer to be characterized for federal income tax purposes as an association or publicly-traded partnership taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or outstanding Certificates.

 

(b)           This Agreement may be amended from time to time by the Depositor and the Owner Trustee with prior written notice to the Rating Agencies and with the consent of the Holders of Notes evidencing not less than 662⁄3% of the Note Balance or, if the Notes have been paid in full, the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests, for the purpose of adding any provisions to, or changing in any manner or eliminating any of the provisions of, this Agreement or modifying in any manner the rights of the Securityholders; provided, however, that no such amendment will be permitted unless an Opinion of Counsel is delivered to the Owner Trustee to the effect that such amendment will not cause the Issuer to be characterized for federal income tax purposes as an association or a publicly traded partnership taxable as a corporation or otherwise have any material adverse impact on the federal income taxation of any Notes Outstanding or outstanding Certificates; and, provided further, that no such amendment may:

 

(i)      increase or reduce in any manner the amount of, or accelerate or delay the timing of, or change the allocation or priority of, collections of payments on or in respect of the Receivables or distributions that are required to be made for the benefit of the Securityholders without the consent of all Securityholders adversely affected by such amendment; or

 

(ii)      reduce the percentage of the Note Balance or the percentage of the aggregate Certificate Percentage Interests the consent of the Noteholders or Certificateholders, as applicable, of which is required for any amendment to this Agreement without the consent of all the Securityholders adversely affected by the amendment.

 

(c)           An amendment to this Agreement shall be deemed not to materially adversely affect the interests of any Securityholders if (i) the Person requesting such amendment obtains and delivers to the Owner Trustee an Opinion of Counsel or an Officer’s Certificate of the Issuer

 

 

 

  

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to that effect and (ii) with respect to the Notes, the Rating Agency Condition has been satisfied with respect to such amendment.

 

(d)           It shall not be necessary for the consent of the Certificateholders, the Noteholders or the Indenture Trustee pursuant to this Section to approve the particular form of any proposed amendment or consent, but it shall be sufficient if such consent shall approve the substance thereof.  The manner of obtaining such consents (and any other consents of Certificateholders provided for in this Agreement or in any other Basic Document) and of evidencing the authorization of the execution thereof by Certificateholders shall be subject to such reasonable requirements as the Owner Trustee may prescribe.  Promptly after the execution of any amendment to the Certificate of Trust, the Owner Trustee shall file such amendment or cause such amendment to be filed with the Secretary of State.

 

(e)           Promptly after the execution of any such amendment or consent, the Owner Trustee shall furnish written notification of the substance of such amendment or consent to each Certificateholder and the Depositor shall furnish written notice of the substance of such amendment or consent to the Indenture Trustee and the Rating Agencies.

 

(f)           In connection with the execution of any amendment to this Agreement or any amendment to any other agreement to which the Issuer is a party, the Owner Trustee shall be entitled to receive and shall be fully protected in relying upon an Opinion of Counsel stating that the execution of such amendment is authorized or permitted by this Agreement (or such other agreement) and an Officer’s Certificate from the Depositor or the Administrator stating that all conditions precedent in this Agreement (or such other agreement) to the execution and delivery of such amendment have been satisfied.  The Owner Trustee may, but shall not be required to, execute any amendment which, as evidenced by an Opinion of Counsel, adversely affects the Owner Trustee’s rights, duties and liabilities under this Agreement.

 

Section 12.02.  Limitations on Rights of Others.  The provisions of this Agreement are solely for the benefit of the Owner Trustee, the Depositor, the Certificateholders, the Administrator and, to the extent expressly provided herein, the Indenture Trustee and the Noteholders, and nothing in this Agreement or in the Certificates, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the Trust Property or under or in respect of this Agreement or any covenants, conditions or provisions contained herein.

 

Section 12.03.  Notices.  Unless otherwise specified in this Agreement, all notices, requests, demands, consents, waivers or other communications to or from the parties to this Agreement will be in writing.  Notices, requests, demands, consents and other communications will be deemed to have been given and made, (i) upon delivery or, in the case of a letter mailed via registered first class mail, postage prepaid, three days after deposit in the mail and (ii) in the case of (a) a facsimile, when receipt is confirmed by telephone or by reply e-mail or reply facsimile from the recipient, (b) an e-mail, when receipt is confirmed by telephone or by reply e-mail from the recipient and (c) an electronic posting to a password-protected website, upon printed confirmation of the recipient’s access to such password-protected website, or when notification of such electronic posting is confirmed in accordance with clauses (ii)(b) and (ii)(c) above.  Unless otherwise specified in this Agreement, any such notice, request, demand,

 

 

 

  

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consent or other communication will be delivered or addressed, in the case of (i) the Owner Trustee, at the Corporate Trust Office (e-mail: yhowell@wilmingtontrust.com, facsimile: (302) 636-4140), (ii) the Depositor, at 36455 Corporate Drive, Farmington Hills, Michigan 48331 (e-mail: michelle.d.spreitzer@daimler.com, facsimile: (248) 991-6962), (iii) the Indenture Trustee, at the Corporate Trust Office, Attention: Melissa Rosal (e-mail: melissa.rosal@usbank.com, telecopier: (312) 332-7996), (iv) Fitch, at Fitch Ratings, Inc., One State Street Plaza, New York, New York 10004, Attention: Asset Backed Surveillance (e-mail: notifications.abs@fitchratings.com), (v) Standard & Poor’s, at Standard & Poor’s Ratings Services, a Standard & Poor’s Financial Services LLC business, 55 Water Street, New York, New York  10041, Attention: Asset Backed Surveillance Department (e-mail: Servicer_reports@sandp.com) or (vi) as to each of the foregoing, at such other address as shall be designated by written notice to the other parties.

 

Section 12.04.  Severability.  If any one or more of the covenants, agreements, provisions or terms of this Agreement or the Certificates shall be for any reason whatsoever held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions and terms of this Agreement and the Certificates and shall in no way affect or impair the validity or enforceability of the other covenants, agreements, provisions and terms of this Agreement and the Certificates or the rights of the Certificateholders.

 

Section 12.05.  Counterparts.  This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such counterparts shall together constitute but one and the same instrument.

 

Section 12.06.  Successors and Assigns.  All covenants and agreements contained herein and in the Certificates shall be binding upon, and inure to the benefit of, the Depositor, the Owner Trustee and the Certificateholders and their respective successors and permitted assigns, all as herein provided.  Any request, notice, direction, consent, waiver or other instrument or action by a Certificateholder shall bind its successors and assigns.

 

Section 12.07.  No Petition.  The Owner Trustee and the Depositor, by entering into this Agreement, each Certificateholder, by accepting a Certificate or a beneficial interest therein, the Indenture Trustee and each Noteholder or beneficial owner of Notes, by accepting the benefits of this Agreement, hereby covenant and agree that they will not at any time institute against, or join any other Person in instituting against, the Depositor or the Issuer any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in connection with any obligations relating to the Certificates, the Notes or any Basic Document and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Depositor or the Issuer during the same period.

 

Section 12.08.  Table of Contents and Headings.  The Table of Contents and the various headings in this Agreement are included for convenience only and will not affect the meaning or interpretation of any provision of this Agreement.

 

Section 12.09.  GOVERNING LAW.  THIS AGREEMENT SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF

 

 

 

  

36

  

DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

 

 

  

37

  

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

 

 

	 	
DAIMLER RETAIL RECEIVABLES LLC,

	 
	 	 	as Depositor	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

	 	
WILMINGTON TRUST, NATIONAL ASSOCIATION,

	 
	 	 	as Owner Trustee	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

 Amended and Restated Trust Agreement

 

  

  

  

EXHIBIT A

 

 

THIS ASSET BACKED CERTIFICATE IS SUBORDINATED IN RIGHT OF PAYMENT TO THE NOTES TO THE EXTENT DESCRIBED IN THE TRUST AGREEMENT, THE SALE AND SERVICING AGREEMENT AND THE INDENTURE REFERRED TO HEREIN.

 

THIS ASSET BACKED CERTIFICATE DOES NOT REPRESENT AN INTEREST IN OR AN OBLIGATION OF DAIMLER RETAIL RECEIVABLES LLC, MERCEDES-BENZ FINANCIAL SERVICES USA LLC OR ANY OF THEIR RESPECTIVE AFFILIATES.

 

THIS ASSET BACKED CERTIFICATE MAY NOT BE ACQUIRED BY OR WITH PLAN ASSETS OF AN EMPLOYEE BENEFIT PLAN OR OTHER PLAN OR ARRANGEMENT THAT IS SUBJECT TO SECTION 406 OF ERISA OR SECTION 4975 OF THE CODE.

 

	REGISTERED	 NO. R-1

 

 

MERCEDES-BENZ AUTO RECEIVABLES TRUST 2013-1

 

ASSET BACKED CERTIFICATE

 

evidencing an undivided beneficial interest in the property of Mercedes-Benz Auto Receivables Trust 2013-1, a Delaware statutory trust (the “Issuer”), which property includes a pool of motor vehicle installment sales contracts and installment loans secured by new and pre-owned motor vehicles sold by Mercedes-Benz Financial Services USA LLC, a Delaware limited liability company (“MBFS USA”), to Daimler Retail Receivables LLC, a Delaware limited liability company (“Daimler Receivables” or the “Depositor”), and sold by the Depositor to the Issuer.  The property of the Issuer has been pledged by the Issuer to U.S. Bank National Association, a national banking association, as trustee (the “Indenture Trustee”), pursuant to an indenture, dated as of July 1, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Indenture”), between the Issuer and the Indenture Trustee, to secure the payment of the Notes issued thereunder.

 

This certifies that DAIMLER RETAIL RECEIVABLES LLC is the registered owner of a 100% Certificate Percentage Interest nonassessable, fully paid, undivided beneficial interest in the Issuer.  The Issuer is governed by an amended and restated trust agreement, dated as of July 1, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Trust Agreement”), between the Depositor and Wilmington Trust, National Association, as trustee (in such capacity, and not in its individual capacity, the “Owner Trustee”), a summary of certain of the pertinent provisions of which is set forth below.  Capitalized terms used herein that are not otherwise defined shall have the meanings ascribed in Appendix A to the sale and servicing agreement, dated as of July 1, 2013 (as amended, restated, supplemented or otherwise modified from time to time, the “Sale and Servicing Agreement”), among the Issuer, the Depositor and MBFS USA, as seller (in such capacity, the “Seller”) and as servicer (in such capacity, the “Servicer”).

 

A-1

 

  

  

  

This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, to which Trust Agreement the registered holder of this Certificate (the “Certificateholder”) by virtue of the acceptance hereof assents and by which such Certificateholder is bound.  The property of the Issuer primarily includes: (i) a pool of motor vehicle installment sales contracts and installment loans originated in connection with the sale of new or pre-owned motor vehicles (the “Receivables”), (ii) all amounts received on or in respect of the Receivables after the Cutoff Date, (iii) the security interests in the Financed Vehicles granted by the Obligors pursuant to the Receivables and (iv) all proceeds of the foregoing.

 

THE RIGHTS OF THE ISSUER IN THE FOREGOING PROPERTY OF THE ISSUER HAVE BEEN PLEDGED TO THE INDENTURE TRUSTEE TO SECURE THE PAYMENT OF THE NOTES.

 

Pursuant to the Trust Agreement, there will be distributed on each Distribution Date to the Person in whose name this Certificate is registered at the close of business on the Business Day preceding such Distribution Date such Certificateholder’s Certificate Percentage Interest in the amount to be distributed to Certificateholders on such Distribution Date.  “Distribution Date” means the 15th day of each month or, if such 15th day is not a Business Day, the following Business Day, commencing on August 15, 2013.

 

THE HOLDER OF THIS CERTIFICATE ACKNOWLEDGES AND AGREES THAT ITS RIGHTS TO RECEIVE DISTRIBUTIONS IN RESPECT OF THIS CERTIFICATE ARE SUBORDINATED TO THE RIGHTS OF THE NOTEHOLDERS AS DESCRIBED IN THE TRUST AGREEMENT, THE SALE AND SERVICING AGREEMENT AND THE INDENTURE.

 

It is the intent of the Depositor, the Owner Trustee, the Seller, the Servicer and the Certificateholders that, for purposes of federal income taxes, State and local income taxes and any other income taxes the Issuer will be treated as either an entity that is disregarded as separate from the beneficial owner of the equity in the Issuer if there is only one such owner, or as a partnership (other than an association or publicly traded partnership) if there are two or more such owners.  The Depositor and any other Certificateholders, by acceptance of a Certificate, agree with the foregoing characterization of the Certificates for such tax purposes and further agree to take no action inconsistent therewith.

 

Each Certificateholder, by its acceptance of a Certificate or a beneficial interest therein, covenants and agrees that such Certificateholder will not at any time institute against the Depositor or the Issuer, or join in any institution against the Depositor or the Issuer of, any bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or other Proceedings under any Insolvency Law in connection with any obligations relating to the Notes, the Certificates or any Basic Document and agrees that it will not cooperate with or encourage others to file a bankruptcy petition against the Depositor or the Issuer during the same period.

 

Distributions on this Certificate will be made as provided in the Trust Agreement by the Paying Agent by wire transfer or check mailed to the Certificateholder of record in the Certificate Register without the presentation or surrender of this Certificate or the making of any notation hereon.  Except as otherwise provided in the Trust Agreement and notwithstanding the

 

A-2

 

  

  

  

above, the final distribution on this Certificate will be made after due notice by the Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at the office or agency of the Owner Trustee maintained for that purpose in Wilmington, Delaware.

 

Reference is hereby made to the further provisions of this Certificate set forth on the reverse hereof, which further provisions shall for all purposes have the same effect as if fully set forth on the face of this Certificate.

 

Unless the certificate of authentication hereon has been executed by an Authorized Officer of the Owner Trustee, by manual signature, this Certificate shall not entitle the Holder hereof to any benefit under the Trust Agreement or the Sale and Servicing Agreement or be valid for any purpose.

 

THIS CERTIFICATE SHALL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF DELAWARE, WITHOUT REFERENCE TO ITS CONFLICT OF LAW PROVISIONS, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS.

 

A-3

 

  

  

  

IN WITNESS WHEREOF, the Owner Trustee, on behalf of the Issuer and not in its individual capacity, has caused this Certificate to be duly executed as of the date set forth below.

 

	

Dated: July __, 2013

	

MERCEDES-BENZ AUTO RECEIVABLES 

     TRUST 2013-1,

	 
	 	 	 	 
	 	By:	WILMINGTON TRUST, NATIONAL 

       ASSOCIATION

	 
	 	 	not in its individual capacity but solely as Owner Trustee	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION

 

This is one of the Certificates referred to in the within-mentioned Trust Agreement.

 

 

	

Dated: July __, 2013

	
WILMINGTON TRUST, NATIONAL 

    ASSOCIATION

	 
	 	not in its individual capacity but solely as Owner Trustee	 
	 	 	 	 
	

 

	
By: 

	 	 
	 	 	Name 	 
	 	 	Title 	 
	 	 	 	 

 

 

 

A-4

 

  

  

  

[REVERSE OF CERTIFICATE]

 

This Certificate does not represent an obligation of, or an interest in, the Depositor, the Seller, the Servicer, the Administrator, the Owner Trustee or any of their respective Affiliates, and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein, in the Trust Agreement or in the other Basic Documents.  In addition, this Certificate is not guaranteed by any Governmental Authority and is limited in right of payment to certain collections with respect to the Receivables (and certain other amounts), all as more specifically set forth herein and in the Indenture and the Sale and Servicing Agreement.

 

The Trust Agreement permits the Depositor and the Owner Trustee, on behalf of the Issuer, with certain exceptions therein provided, to amend from time to time certain terms and conditions set forth in the Trust Agreement without the consent of the Certificateholders.  The Trust Agreement also permits the Depositor and the Owner Trustee, on behalf of the Issuer, with certain exceptions as therein provided, to amend certain terms and conditions set forth in the Trust Agreement with the consent of the Holders of Notes evidencing not less than 662⁄3% of the Note Balance and the Holders of Certificates evidencing not less than 51% of the aggregate Certificate Percentage Interests.  Any such consent by the Certificateholder shall be conclusive and binding on such Certificateholder and on all future Certificateholders and of any Certificate issued upon the registration of transfer hereof or in exchange hereof or in lieu hereof whether or not notation of such consent is made upon this Certificate.

 

As provided in the Trust Agreement and subject to certain limitations therein set forth, the Transfer of this Certificate may be registered in the Certificate Register upon surrender of this Certificate for registration of Transfer at the Corporate Trust Office and a written instrument of transfer in form satisfactory to the Owner Trustee and the Certificate Registrar duly executed by the Certificateholder or such Certificateholder’s attorney duly authorized in writing, and thereupon one or more new Certificates in any authorized denomination and in the same aggregate Certificate Percentage Interests in the Issuer will be issued to the designated transferee or transferees.  No service charge shall be made for any registration of Transfer or exchange of Certificates, but the Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed in connection therewith.  The initial Certificate Registrar appointed under the Trust Agreement is the Owner Trustee.

 

Each Certificateholder, by its acceptance of a Certificate, shall be deemed to have represented and warranted that such Certificateholder is not (i) a Benefit Plan, (ii) a Person acting on behalf of a Benefit Plan or a Person using the assets of a Benefit Plan to effect the transfer of such Certificate or (iii) an insurance company purchasing a Certificate with funds contained in an “insurance company general account” (as defined in Section V(e) of PTCE 95-60) that includes the assets of a Benefit Plan for purposes of the Plan Asset Regulation.

 

Any Person who is not an Affiliate of the Seller and acquires more than 49.9% of the Certificates will be deemed to represent that it is not a party in interest (within the meaning of ERISA) or a disqualified person (within the meaning of Section 4975(e)(2) of the Code) with respect to any Benefit Plan, other than a Benefit Plan that it sponsors for the benefit of its employees, and that no Benefit Plan with respect to which it is a party in interest has or will acquire any interest in the Notes.

 

A-5

 

  

  

  

The Certificates are issuable only in registered form in denominations as provided in the Trust Agreement, subject to certain limitations therein set forth.

 

The Owner Trustee, the Certificate Registrar and any Paying Agent may treat the Person in whose name this Certificate is registered in the Certificate Register (as of the day of determination) as the owner of this Certificate for the purpose of receiving distributions pursuant to the Trust Agreement and for all other purposes whatsoever, and none of the Owner Trustee, the Certificate Registrar or any Paying Agent shall be bound by any notice to the contrary.

 

The Trust Agreement, with certain exceptions therein provided, shall terminate and be of no further force or effect and the Issuer shall dissolve upon the earlier of (i) the payment to the Servicer, the Trustees and the Securityholders of all amounts required to be paid to them pursuant to the terms of the Indenture, the Sale and Servicing Agreement and the Trust Agreement, (ii) the Distribution Date next succeeding the month which is one year after the maturity or other liquidation of the last Receivable and the disposition of any amounts received upon liquidation of any property remaining in the Issuer or (iii) upon the purchase of the Receivables by the Servicer in connection with an Optional Purchase and retirement of the Securities.

 

A-6

 

  

  

  

ASSIGNMENT

 

SOCIAL SECURITY NUMBER

OR OTHER IDENTIFICATION

NUMBER OF ASSIGNEE: ________________

 

 

 

FOR VALUE RECEIVED, the undersigned hereby sells, assigns and transfers unto _________________________________

_______________________________________________________________

 

(name and address of assignee)

the within Certificate and all rights thereunder, and hereby irrevocably constitutes and appoints ________________________, attorney, to transfer said Certificate on the Certificate Register, with full power of substitution in the premises.

Dated:

 

 

	 	 	 	________________________________________*/
	 	 	 	 
	 	 	 	Signature Guaranteed:
	 	 	 	 
	 	 	 	________________________________________*/

 

	
*/

	
NOTICE: The signature to this assignment must correspond with the name of the registered owner as it appears on the face of the within Certificate in every particular, without alteration, enlargement or any change whatsoever.  Such signature must be guaranteed by an “eligible guarantor institution” meeting the requirements of the Certificate Registrar.

A-7

 

  

  

  

EXHIBIT B

 

CERTIFICATE OF TRUST OF

MERCEDES-BENZ AUTO RECEIVABLES TRUST 2013-1

This Certificate of Trust of Mercedes-Benz Auto Receivables Trust 2013-1 (the “Trust”), is being duly executed and filed on behalf of the Trust by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. Code, § 3801 et seq.) (the “Act”).

1.         Name. The name of the statutory trust formed by this Certificate of Trust is Mercedes-Benz Auto Receivables Trust 2013-1.

2.         Delaware Trustee. The name and business address of a trustee of the Trust having its principal place of business in the State of Delaware is Wilmington Trust, National Association, Rodney Square North, 1100 North Market Street, Wilmington, Delaware 19890-0001, Attention: Corporate Trust Administration.

3.         Effective Date. This Certificate of Trust shall be effective upon filing.

 

IN WITNESS WHEREOF, the undersigned has duly executed this Certificate of Trust in accordance with Section 3811(a)(1) of the Act.

 

	 	
WILMINGTON TRUST, NATIONAL 

	 
	 	 	ASSOCIATION,	 
	 	 	as Trustee	 
	 	 	 	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

 

 

 

B-1

 

  

  

  

 

EXHIBIT C

 

FORM OF REPURCHASE REQUEST NOTICE

 

 

___________, 201_

 

Mercedes-Benz Financial Services USA LLC

36455 Corporate Drive

Farmington Hills, Michigan  48331-3552

Attention:  Steven C. Poling

 

	
  

	
Re:

	
Mercedes-Benz Auto Receivables Trust 2013-1 Noteholder Request to Repurchase Receivables

	
 

 

 

Reference is hereby made to (i) the Indenture, dated as of July 1, 2013 (the “Indenture”), between Mercedes-Benz Auto Receivables Trust 2013-1, as issuer (the “Issuer”), and U.S. Bank National Association, as indenture trustee (the “Indenture Trustee”), and (ii) the Amended and Restated Trust Agreement of the Issuer, dated as of July 1, 2013, between Daimler Retail Receivables LLC, as depositor (the “Depositor”), and Wilmington Trust, National Association, as owner trustee (in such capacity, the “Owner Trustee”).   Capitalized terms used but not defined herein shall have the meanings given them in the Indenture.

 

[During the period from and including ____, 201_ to but excluding  ____, 201_, the Owner Trustee received no requests from Noteholders requesting that Receivables be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.]

 

[During the period from and including ____, 201_ to but excluding  ____, 201_, the Owner Trustee received one or more requests from Noteholders requesting that Receivables be repurchased by the Seller pursuant to Section 2.05 of the Sale and Servicing Agreement or Section 3.03(c) of the Receivables Purchase Agreement.  The details of such requests are set forth below:]

 

	
Date of Request

	
Number of Receivables

Subject to Request

	
Aggregate Principal Balance 

of Receivables Subject to 

Request

	  	  	  
	  	  	  
	  	  	  

 

 

 

  

C-1

  

 

	 	
WILMINGTON TRUST, NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee

	 
	 	 	 	 
	
 

	
By: 

	 	 
	 	 	Name: 	 
	 	 	Title: 	 
	 	 	 	 

 

 

 

 

 

 

 

 

C-2

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