Document:

ex4_2.htm

EXHIBIT 4.2

 

FORM OF

 

AUTHORIZED PARTICIPANT AGREEMENT

 

 AUTHORIZED PARTICIPANT AGREEMENT (this “Agreement”) dated as of [                    ] among (i) [    ], a [    ] organized under the laws of [    ] (the “Authorized Participant”), (ii) Managed Emerging Markets Trust (the “Trust”), a statutory trust organized under Delaware law pursuant to the provisions of a Trust Agreement dated as of [            ], 2014 (as the same may be amended from time to time, the “Trust Agreement”) among The Bank of New York Mellon, a New York banking corporation, in its capacity as trustee (in such capacity, the “Trustee”), Wilmington Trust, National Association, a national banking association, as Delaware Trustee and the Sponsor (as defined below), and (iii) Artivest Advisors LLC, a Delaware limited liability company, in its capacity as sponsor of the Trust (in such capacity, the “Sponsor”). 

 

R E C I T A L S

 

A.  Pursuant to the provisions of the Trust Agreement, the Trust may from time to time issue or redeem equity securities representing beneficial interests in the Trust (“Shares”), in each case only in aggregate amounts of 100,000 Shares (or such number as shall be designated pursuant to the Trust Agreement) (such aggregate amount, a “Basket”), and integral multiples thereof, and only in transactions with a party who, at the time of the transaction, shall have signed and in effect an Authorized Participant Agreement with respect to the Trust.

 

B.  [    ] has requested to become an “Authorized Participant” (as such term is defined in the Trust Agreement) with respect to the Trust, and the Sponsor and the Trust have agreed to such request.

 

NOW, THEREFORE, in consideration of the foregoing premises, and for other good and valuable consideration, the receipt of which is hereby acknowledged, the parties, hereto, intending to be legally bound, agree as follows:

 

Section 1.  Procedures.  The Authorized Participant will purchase or redeem Baskets of Shares in compliance with the Trust Agreement as supplemented by the Creation and Redemption Procedures attached to this Agreement as Schedule 1 (such procedures, as the same may be amended or modified from time to time in compliance with the provisions hereof and thereof, the “Procedures”).  All creation orders and redemption orders (collectively, “Orders”) shall be placed and executed in accordance with the Trust Agreement as supplemented by the Procedures.

 

Section 2.  Incorporation of Standard Terms.  The Standard Terms attached hereto as Schedule 2 (the “Standard Terms”) are hereby incorporated by reference into, and made a part of, this Agreement.

 

Section 3.  Conflicts Rules.  In case of any inconsistency between the provisions of this Agreement and the Trust Agreement, the provisions of the Trust Agreement shall control.  In case of inconsistency between the provisions incorporated by reference into this Agreement pursuant to Section 2 above and any other provision of this Agreement, the latter will control.

 

Section 4.  Authorized Representatives.  Pursuant to Section 2.01 of the Standard Terms, attached hereto as Exhibit A is a certificate listing the Authorized Representatives of the Authorized Participant.

 

Section 5.  Notices.  Except as otherwise specifically provided in the Procedures, all notices required or permitted to be given pursuant hereto shall be given in writing and delivered by personal delivery or by postage prepaid registered or certified United States first class mail, return receipt requested, or by telex, telegram, facsimile, electronic mail message or similar means of same day delivery (with a confirming copy by mail) addressed as follows:

 

	 	
(i) 

	
If to the Trust:

 

Managed Emerging Markets Trust

c/o Artivest Advisors LLC

 1140 Broadway, Suite 1501 

 New York, NY 10001 

Attention: General Counsel

Telephone:  (855) 433-4383

Facsimile:  (855) 433-4383

 Email: notices@artivest.co 

 

 

  

  

  

 

If to the Sponsor:

 

Artivest Advisors LLC

 1140 Broadway, Suite 1501 

 New York, NY 10001 

Attention: General Counsel

Telephone:  (855) 433-4383

Facsimile:  (855) 433-4383

 Email: notices@artivest.co 

in each case, with a copy to:

The Bank of New York Mellon

2 Hanson Place

Brooklyn, New York 11217

Telephone: [●]

Facsimile: [●]

Email: [●]

 

	 	
(ii) 

	
If to the Authorized Participant:

 

[●]

Attention:  [●]

Telephone:  [●]

Facsimile:  [●]

Email: [●]

 

or to such other address as any of the parties hereto shall have communicated in writing to the remaining parties in compliance with the provisions hereof.

 

Section 6.  Effectiveness, Termination and Amendment.  This Agreement shall become effective upon execution and delivery by each of the parties hereto.  This Agreement may be terminated at any time by any party upon sixty days’ prior written notice to the other parties and may be terminated earlier by the Trust or the Sponsor at any time on the event of a breach by the Authorized Participant of any provision of this Agreement (including the Standard Terms incorporated by Section 2 hereof) or the Procedures.  This Agreement supersedes any prior agreement between or among the parties concerning the matters governed hereby.  This Agreement may be amended by the Trust or the Sponsor from time to time without the consent of the Authorized Participant, or any person on whose behalf the Authorized Participant holds Shares, by the following procedure:  the Trust or the Sponsor will mail a copy of the amendment to the Authorized Participant in compliance with the notice provisions of this Agreement; if the Authorized Participant does not object in writing to the amendment within ten Business Days after receipt of the proposed amendment, the amendment will become part of this Agreement in accordance with its terms.

 

Section 7.  Governing Law.  This Agreement shall be governed by and interpreted in accordance with the laws of the State of New York, without reference to the choice of law provisions thereof.  The parties irrevocably submit to the non-exclusive jurisdiction of any New York State or United States federal court sitting in New York City over any suit, action or proceeding arising out of, or relating to, this Agreement.

 

Section 8.  Assignment.  No party to this Agreement shall assign any rights, or delegate the performance of any obligations, arising hereunder without the prior written consent of the other parties hereto; provided that any party hereto which may be merged or converted, or with which it may be consolidated, or any entity resulting from any merger, consolidation or conversion to which a party hereunder shall be a party, shall be the successor of such party hereto.  Any purported assignment or delegation in violation of these provisions shall be null and void.

 

Section 9.  Counterparts.  This Agreement may be executed in several counterparts, each of which shall be an original and all of which shall constitute but one and the same instrument.

 

[Signature Page Follows]

 

  

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IN WITNESS WHEREOF, the parties hereto have executed this Authorized Participant Agreement as of the date set forth above.

 

	 	
Managed Emerging Markets Trust

	 	  	  
	 	
By:

	
The Bank of New York Mellon,

As Trustee

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
Artivest Advisors LLC, in its

	 	
its capacity as Sponsor of the Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
[Authorized Participant]

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Schedule 1

 

CREATION AND REDEMPTION PROCEDURES

 

 

 

 

 

 

  

  

  

 

TABLE OF CONTENTS

	  	
Page

	  	  
	
ARTICLE I DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

	
1

	 	 
	
Section 1.01.  Definitions

	
1

	 	 
	
Section 1.02.  Interpretation

	
2

	 	 
	
Section 1.03.  Conflicts

	
3

	 	 
	
ARTICLE II CREATION PROCEDURES

	
3

	 	 
	
Section 2.01.  Initial Creation of Shares

	
3

	 	 
	
Section 2.02.  Subsequent Creation of Shares

	
3

	 	 
	
ARTICLE III REDEMPTION PROCEDURES

	
5

	 	 
	
Section 3.01.  Redemption of Shares

	
5

 

 

  

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MANAGED EMERGING MARKETS TRUST

 

CREATION AND REDEMPTION PROCEDURES

 

 adopted by the Sponsor and the Trust (each as defined below) as of [·], 2014 

 

ARTICLE I

 

DEFINITIONS AND OTHER PROVISIONS OF GENERAL APPLICATION

 

Section 1.01.  Definitions.  For purposes of these Procedures, unless the context otherwise requires, the following terms will have the following meanings:

 

“Adviser” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Participant” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Participant Agreement” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Authorized Representative” shall mean, with respect to an Authorized Participant, each individual who, pursuant to the provisions of the Authorized Participant Agreement, has the power and authority to act on behalf of the Authorized Participant in connection with the placement of Purchase Orders or Redemption Orders and is in possession of the personal identification number (PIN) assigned by the Trust for use in any communications regarding Purchase or Redemption Orders on behalf of such Authorized Participant.

 

“Basket” has the meaning ascribed to the term in the Trust Agreement.

 

“Basket Amount” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Business Day” shall mean any day other than (a) a Saturday or Sunday; (b) a day on which the Exchange is closed for regular trading; (c) a day on which any of the Adviser, the Processing Agent, the Settlement Agent, the Sponsor or the Trustee is authorized or required by law or regulation to remain closed; or (d) a day on which the Federal Reserve wire transfer system is closed for cash wire transfers.

 

“Creation” means the process that begins when a Purchasing Authorized Participant first indicates to the Processing Agent its intention to purchase one or more Baskets pursuant to these Procedures and concludes with the issuance by the Trust and Delivery to such Purchasing Authorized Participant of the corresponding number of Shares.

 

“Creation and Redemption Line” shall mean a telephone number designated as such by the Processing Agent and communicated to each Authorized Participant in compliance with the notice provisions of the Authorized Participant Agreement to which such Authorized Participant is a party.

 

“Defaulting Authorized Participant” shall have the meaning specified in Section 2.02(g).

 

“Deliver” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Deposit Amount” shall mean, with respect to each Requested Basket specified in a Purchase Order and each Redeemed Basket specified in a Redemption Order, an amount equal to the Basket Amount announced by the Trust on the Order Date of such Purchase Order or Redemption Order (as applicable).

 

“DTC” shall mean The Depository Trust Company, its nominees and their respective successors.

 

“Eligible Business Day” shall mean a Business Day other than a Business Day immediately preceding a day on which there is no scheduled exchange trading session for one or more of the futures contracts that on such day constitute the Relevant Futures Contracts.

 

“Exchange” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Initial Creation” shall mean the initial creation of Shares pursuant to the provisions of Section 2.01.

 

“Issue Date” shall mean, with respect to a Purchase Order, the date on which the Deposit Amount is received.

 

  

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“Order Cut-Off Time” shall mean 1:15 p.m. (New York time) or the close of regular trading on the New York Stock Exchange, whichever is earlier.

 

“Order Date” shall have, with respect to a Purchase Order, the meaning ascribed to the term in Section 2.02(a); and, with respect to a Redemption Order, the meaning ascribed to the term in Section 3.01(a).

 

“Order Execution Price” shall mean, with respect to each Basket specified in a Purchase Order or each Basket specified in a Redemption Order, an amount per Basket equal to the Basket Amount announced by the Trust on the Order Date of such Purchase Order or Redemption Order (as applicable).

 

“Portfolio” shall mean, at any time, the portfolio of futures and/or forward contracts, swaps, cash and other investments owned by the Trust at such time.

 

“Procedures” shall mean these Creation and Redemption Procedures, as from time to time amended.

 

“Processing Agent” shall mean The Bank of New York Mellon, a New York banking corporation, or any successor thereto appointed by the Trust as the Trust’s agent for effecting Creations and Redemptions with Authorized Participants.

 

“Purchase Order” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Purchasing Authorized Participant” shall have the meaning ascribed to the term in Section 2.02(a).

 

“Redeemed Baskets” shall have the meaning ascribed to the term in Section 3.01(b)(i).

 

“Redeeming Authorized Participant” shall have the meaning ascribed to the term in Section 3.01(a).

 

“Redemption” shall mean the process that begins when a Redeeming Authorized Participant first indicates to the Processing Agent its intention to redeem one or more Baskets pursuant to these Procedures and concludes with delivery by the Trust of the corresponding amount of cash to such Redeeming Authorized Participant.

 

“Redemption Date” shall mean, with respect to a Redemption Order, the next Business Day following the Order Date of such Redemption Order; provided, that in the discretion of the Settlement Agent, the Redemption Date of a Redemption Order may be extended to a date not beyond the third Business Day following the Order Date of such Redemption Order.

 

“Redemption Order” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Relevant Futures Contracts” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Requested Baskets” shall have the meaning set forth in Section 2.02(b)(i).

 

“Settlement Agent” shall mean The Bank of New York Mellon, a New York banking corporation, or successor thereto appointed by the Trust as the Trust’s agent for settling Creations and Redemptions with Authorized Participants.

 

“Shares” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Sponsor” shall have the meaning ascribed to the term in the Trust Agreement.

 

“Transaction Fee” shall mean, with respect to a Purchase Order or Redemption Order, the amount per Basket determined from time to time by the Trustee in consultation with the Sponsor and in effect on the Order Date of such Purchase Order or on the Redemption Date of such Redemption Order (as applicable), as disclosed in the then current prospectus filed by the Trust with the Securities and Exchange Commission.

 

“Trust” shall mean Managed Emerging Markets Trust, a Delaware statutory trust governed by the provisions of the Trust Agreement.

 

“Trustee” shall mean The Bank of New York Mellon, a New York banking corporation, in its capacity as Trustee under the Trust Agreement, and any successor thereto in compliance with the provisions thereof.

 

 “Trust Agreement” shall have the meaning set forth in the Authorized Participant Agreement.

 

Section 1.02.  Interpretation.  In these Procedures:

 

  

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Unless otherwise indicated, all references to Sections, clauses, paragraphs, schedules or exhibits, are to Sections, clauses, paragraphs, schedules or exhibits in or to these Procedures.

 

The words “hereof”, “herein”, “hereunder” and words of similar import shall refer to these Procedures as a whole, and not to any individual provision in which such words may appear.

 

A reference to any statute, law, decree, rule, regulation or other applicable norm shall be construed as a reference to such statute, law, decree, rule, regulation or other applicable norm as re-enacted, re-designated or amended from time to time.

 

A reference to any agreement, instrument or document shall be construed as a reference to such agreement, instrument or document as the same may have been amended from time to time in compliance with the provisions thereof.

 

Section 1.03.  Conflicts.  In case of conflict between any provision of these Procedures and the terms of the Trust Agreement, the terms of the Trust Agreement shall control.

 

ARTICLE II

 

CREATION PROCEDURES

 

Section 2.01.  Initial Creation of Shares.  The Initial Creation of Shares will take place in compliance with such procedures as the Trust, the Sponsor and the Agents may agree.

 

Section 2.02.  Subsequent Creation of Shares.  After the Initial Creation, the issuance and Delivery of Shares shall take place only in integral numbers of Baskets in compliance with the following rules:

 

(a) An Authorized Participant wishing to acquire from the Trust one or more Baskets (such Authorized Participant, a “Purchasing Authorized Participant”) shall place a Purchase Order with the Processing Agent on an Eligible Business Day.  Purchase Orders received by the Processing Agent prior to the Order Cut-Off Time on an Eligible Business Day shall have the date of such Eligible Business Day as the “Order Date”.  Purchase Orders received by the Processing Agent on or after the Order Cut-Off Time on an Eligible Business Day, on a Business Day other than an Eligible Business Day, or on a day other than a Business Day, shall be considered received at the opening of business on the next Eligible Business Day and shall have as their Order Date the date of such next Eligible Business Day.

 

(b) For purposes of paragraph “a” above, a Purchase Order shall be deemed “received” by the Processing Agent only when each of the following has occurred:

 

(i) An Authorized Representative of the Purchasing Authorized Participant shall have placed a telephone call to the Creation and Redemption Line informing the Processing Agent that such Purchasing Authorized Participant wishes to place a Purchase Order for a specified number of Baskets (the “Requested Baskets”); and

 

(ii) The Processing Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Purchasing Authorized Participant that a Purchase Order for a specified number of Baskets has been received by the Processing Agent from an Authorized Representative for such Purchasing Authorized Participant’s account.

 

(c) With respect to each Requested Basket specified in a Purchase Order, the Purchasing Authorized Participant shall deposit with the Settlement Agent in immediately available funds the corresponding Deposit Amount not later than 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Purchase Order is placed, and give notice of such deposit to the Settlement Agent via facsimile or electronic mail message.  The Settlement Agent shall confirm receipt of such Deposit Amount to the Purchasing Authorized Participant via facsimile or electronic mail message.  A Purchase Order shall be deemed automatically cancelled if the Settlement Agent has not received the corresponding Deposit Amount in immediately available funds on a timely basis, as described in this paragraph.

 

(d) The Sponsor shall have the absolute right to reject any Purchase Order including, without limitation, (i) Purchase Orders that the Processing Agent has determined are not in proper form, (ii) Purchase Orders that the Sponsor has determined would have adverse tax or other consequences to the Trust or to the owners of Shares, (iii) Purchase Orders the acceptance of which would, in the opinion of counsel to the Sponsor result in a violation of law, (iv) Purchase Orders in respect of which the Settlement Agent has not received in immediately available funds the corresponding Deposit Amount by 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Purchase Order is placed, or (v) Purchase Orders received during any period in which circumstances make transactions in, or settlement or Delivery of, Shares or components of the Portfolio impossible or impractical.  None of the Sponsor, the Processing Agent, the Trust or any of their agents shall be liable to any person for rejecting a Purchase Order.

 

  

Sch. I-3

  

 

(e) The Sponsor may suspend the creation of Baskets, or postpone the Issue Date of a Purchase Order, for as long as it considers necessary for any reason.  None of the Sponsor, the Processing Agent, the Trust or any of their agents will be liable to any person for such suspension or postponement.

 

(f) Prior to the transmission by the Processing Agent via facsimile or electronic mail message of confirmation of acceptance thereof, a Purchase Order will only represent the Purchasing Authorized Participant’s unilateral offer to purchase the Required Baskets specified in such Purchase Order and will have no binding effect upon the Trust, the Processing Agent or any other party.  Upon the Settlement Agent’s receipt of the aggregate Deposit Amount corresponding to a Purchase Order as provided in paragraph “(c)” above, the Purchasing Authorized Participant’s offer to purchase the Required Baskets specified in such Purchase Order shall become irrevocable.

 

(g) By 11:00 a.m. (New York time) on the Business Day following the Issue Date of a Purchase Order, the Trust shall issue the aggregate number of Shares corresponding to the Requested Baskets specified in such Purchase Order and Deliver them by credit to the account at DTC which the Purchasing Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent, together with immediately available funds in an amount equal to the positive difference, if any, between (1) the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order and (2) the sum of (x) the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order, and (y) the Transaction Fee applicable to such Purchase Order (without, for the avoidance of doubt, any interest on any such amount), provided that, if the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order does not suffice to cover the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order together with the Transaction Fee applicable to such Purchase Order, the Trust shall issue Shares as set forth above if, and only if, by 11:00 a.m. (New York time) on the Business Day following the Issue Date of such Purchase Order:

 

(i) the Settlement Agent has received from the Purchasing Authorized Participant in immediately available funds cash in an amount per Requested Basket equal to the positive difference between (1) the sum of (x) the aggregate Order Execution Price of all Requested Baskets specified in such Purchase Order and (y) the Transaction Fee applicable to such Purchase Order, and (2) the aggregate Deposit Amount deposited by the Purchasing Authorized Participant in respect of all Requested Baskets specified in such Purchase Order; and

 

(ii) any other conditions to the issuance under the Trust Agreement have been satisfied.

 

(h) In the event that, by 11:00 a.m. (New York time) on the Business Day following the Issue Date of a Purchase Order, a Purchasing Authorized Participant (such Purchasing Authorized Participant, a “Defaulting Authorized Participant”) has failed to deposit with the Settlement Agent the amount described in sub-clause “(g)(i)” above, the Trust may, in consultation with the Sponsor:

 

(i) cancel such Purchase Order by sending via fax or electronic mail message notice of such cancellation to the Purchasing Authorized Participant, liquidate any trading positions entered into by the Trust in connection with such Purchase Order and transfer to the Defaulting Authorized Participant, in full repayment of the aggregate Deposit Amount deposited by such Defaulting Authorized Participant in respect of all Requested Baskets specified in such Purchase Order, the lower of (1) the proceeds of such liquidation, and (2) the aggregate Deposit Amount deposited by such Defaulting Authorized Participant in respect of all Requested Baskets specified in such Purchase Order (without, for the avoidance of doubt, any interest thereon), in either case net of (x) the Transaction Fee applicable to such Purchase Order and (y) such additional amounts as the Trust, in consultation with the Sponsor, may deem appropriate to compensate the Trust for all damages, costs and expenses (including brokerage fees and commissions) incurred in connection with such Purchase Order; or

 

(ii) take such other action as the Trust, in consultation with the Sponsor, may deem necessary or appropriate under the circumstances, it being understood and agreed that in making a decision regarding any such other action the Trust and the Sponsor shall be required to take into account the best interests of the Trust and its shareholders only and shall have no duty to ameliorate or mitigate any damages of the Defaulting Authorized Participant.

 

(i) In all other cases, the Trust shall issue the aggregate number of Requested Shares specified in a Purchase Order and Deliver them by credit to the account at DTC which the Purchasing Authorized Participant shall have identified for such purpose in written instructions to the Settlement Agent on the Business Day on which the conditions set forth in clauses “(g)(i)” and “(g)(ii)” above shall have been met.

 

  

Sch. I-4

  

 

ARTICLE III

 

REDEMPTION PROCEDURES

 

Section 3.01.  Redemption of Shares.  Redemptions of Shares shall take place only in integral numbers of Baskets in compliance with the following rules:

 

(a) An Authorized Participant wishing to redeem one or more Baskets (such Authorized Participant, a “Redeeming Authorized Participant”) shall place a Redemption Order with the Processing Agent on an Eligible Business Day.  Redemption Orders received by the Processing Agent prior to the Order Cut-Off Time on an Eligible Business Day shall have the date of such Eligible Business Day as the “Order Date”.  Redemption Orders received by the Processing Agent on or after the Order Cut-Off Time on an Eligible Business Day, on a Business Day other than an Eligible Business Day, or on a day other than a Business Day, shall be considered received at the opening of business on the next Eligible Business Day and shall have as their Order Date the date of such next Eligible Business Day.

 

(b) For purposes of paragraph “a” above, a Redemption Order shall be deemed “received” by the Processing Agent only when each of the following has occurred:

 

(i) An Authorized Representative of the Redeeming Authorized Participant shall have placed a telephone call to the Creation and Redemption Line informing the Processing Agent that such Redeeming Authorized Participant wishes to place a Redemption Order for a specified number of Baskets (the “Redeemed Baskets”); and

 

(ii) The Processing Agent shall have sent, via facsimile or electronic mail message, an affirmation to the Redeeming Authorized Participant that a Redemption Order for a specified number of Baskets has been received by the Processing Agent from an Authorized Representative for such Redeeming Authorized Participant’s account.

 

(c) With respect to each Redeemed Basket specified in a Redemption Order, the Redeeming Authorized Participant shall, not later than 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the Redemption Order is placed, confirm in writing to the Settlement Agent that the Shares comprising the Redeeming Baskets have been transferred by the Redeeming Authorized Participant from its account at DTC to the Settlement Agent’s account at DTC.  A Redemption Order shall be deemed automatically cancelled if the Redeeming Authorized Participant has not complied with this paragraph on a timely basis.

 

(d) The Sponsor shall have the absolute right to reject any Redemption Order, including without limitation, (i) Redemption Orders that the Processing Agent has determined are not in proper form, (ii) Redemption Orders the acceptance of which would, in the opinion of counsel to the Sponsor result in a violation of law, (iii) Redemption Orders in respect of which the Redeeming Authorized Participant has not complied with the provisions of paragraph “(c)” above by 6:00 p.m. (New York time) of the next Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Authorized Participant and the Settlement Agent when the redemption order is placed, or (iv) Redemption Orders received during any period in which circumstances make transactions in, or settlement or Delivery of, Shares or components of the Portfolio impossible or impractical.  None of the Sponsor, the Processing Agent, the Trust or any of their agents shall be liable to any person for rejecting a Redemption Order.

 

(e) The Sponsor may, in its discretion, suspend the right of redemption, or postpone the Redemption Date of a Redemption Order, (1) for any period during which NYSE Arca or any exchange on which the Trust’s assets are regularly traded is closed other than for customary weekend or holiday closings, or trading is suspended or restricted, (2) for any period during which an emergency exists as a result of which the delivery, disposal or evaluation of the Trust’s assets is not reasonably practicable, or (3) for such other period as the Processing Agent determines to be necessary for the protection of owners of the Shares.  None of the Sponsor, the Processing Agent, the Trust or any of their agents will be liable to any person for such suspension or postponement.

 

(f) Prior to the transmission by the Processing Agent via facsimile or electronic mail message of confirmation of acceptance thereof, a Redemption Order will only represent the Redeeming Authorized Participant’s unilateral offer to surrender for redemption the Redeemed Baskets specified in such Redemption Order and will have no binding effect upon the Trust, the Processing Agent or any other party.  Upon the Redeeming Authorized Participant’s transfer of Shares to the Settlement Agent’s account at DTC, as provided in paragraph “(c)” above, the Redeeming Authorized Participant’s offer to surrender for redemption the Redeemed Baskets specified in a Redemption Order shall become irrevocable.

 

(g) Provided that by 11:00 a.m. (New York time) on the Redemption Date of a Redemption Order:

 

(i) the Redeeming Authorized Participant has (1) Delivered to the Settlement Agent’s account at DTC the total number of Shares comprising the Redeemed Baskets specified in such Redemption Order and (2) paid the Transaction Fee applicable to such Redemption Order; and

 

(ii) any other conditions to the Redemption under the Trust Agreement have been satisfied, the Settlement Agent will, on such day, credit the account of the Redeeming Authorized Participant at DTC with immediately available funds in an amount equal to the aggregate Order Execution Price corresponding to the total number of Redeemed Baskets specified in such Redemption Order (the “Redemption Distribution”).

 

  

Sch. I-5

  

 

(h) In the event that, by 6:00 p.m. (New York time) on the Redemption Date of a Redemption Order, the Settlement Agent’s account at DTC shall not have been credited with the total number of Shares comprising the Redeemed Baskets specified in such Redemption Order, the Trust will,

 

(i) deliver the Redemption Distribution but only to the extent of whole Redeemed Baskets received; and any remainder of the Redemption Distribution will be delivered on the next Business Day after the Redemption Date to the extent of remaining whole Redeemed Baskets received if the Settlement Agent receives a fee applicable to the extension of the Redemption Date which the Processing Agent may, from time to time, determine and the remaining Redeemed Baskets to be redeemed are credited to the Trust’s DTC account on such next Business Day; and

 

(ii) any further outstanding amount of the Redemption Order will be cancelled.

 

(i) Pursuant to information from the Sponsor, the Settlement Agent will be authorized to deliver the Deposit Amount notwithstanding that the Redeemed Baskets are not credited to the Trust’s DTC account by 1:15 p.m. (New York time) on the Business Day following the Order Date or by the end of such later Business Day, not to exceed three Business Days after the Order Date, as agreed to between the Redeeming Authorized Participant and the Settlement Agent when the Redemption Order is placed, if the Redeeming Authorized Participant has collateralized its obligation to deliver the Redeemed Baskets through DTC’s book entry-system on such terms as the Sponsor may from time to time determine.

 

(j) In all other cases, the Settlement Agent will pay the cash consideration corresponding to the total number of Baskets redeemed, net of the corresponding Transaction Fee, on the Business Day on which the conditions set forth in clauses “(g)(i)” and “(g)(ii)” above shall have been met.

 

[Signature Page Follows]

 

 

 

 

 

 

  

Sch. I-6

  

 

IN WITNESS WHEREOF, the Sponsor and the Trust have executed these Creation and Redemption Procedures as of the date set forth above.

 

	 	
MANAGED EMERGING MARKETS TRUST

	 	  
	 	
By The Bank of New York Mellon, in

	 	
its capacity as Trustee of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
ARTIVEST ADVISORS LLC,

	 	
in its capacity as Sponsor of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Schedule 2

 

STANDARD TERMS

 

 STANDARD TERMS FOR AUTHORIZED PARTICIPANT AGREEMENTS (the “Standard Terms”) agreed to as of [·], 2014 by and between Managed Emerging Markets Trust, a Delaware statutory trust (the “Trust”), and Artivest Advisors LLC, a Delaware limited liability company, in its capacity as the sponsor of the Trust (in such capacity, the “Sponsor”). 

 

ARTICLE 1

ORDERS FOR PURCHASE AND REDEMPTION

 

Section 1.01.  Authorization to Purchase and Redeem Baskets.  Subject to the provisions of the Authorized Participant Agreement, during the term of the Authorized Participant Agreement the Authorized Participant will be authorized to purchase and redeem Baskets of Shares in compliance with the provisions of the Trust Agreement and the Procedures.

 

Section 1.02.  Procedures for Orders.  Each party hereto agrees to comply with the provisions of the Trust Agreement and the Procedures to the extent applicable to it.

 

Section 1.03.  Consent to Recording.  The phone lines used by the Trust, the Processing Agent, the Settlement Agent or their affiliated persons may be recorded, and the Authorized Participant hereby consents to the recording of all calls with any of those parties.

 

Section 1.04.  Irrevocability.  The Authorized Participant agrees on behalf of itself and any Authorized Participant Client that delivery to the Processing Agent of an Order shall be irrevocable; provided that each of the Trust and the Sponsor reserves the right to reject any Order in compliance with the provisions of the Trust Agreement and the Procedures.

 

Section 1.05.  Costs and Expenses.  The Authorized Participant shall be responsible for any and all expenses and costs incurred by the Trust in connection with any Orders, including, without limitation, any transaction fees or interest or funding cost incurred by the Trust in connection with the Authorized Participant’s failure to timely settle any Order.

 

Section 1.06.  Delivery of Consideration to the Trust.  The Authorized Participant understands and agrees that in the event corresponding cash consideration is not transferred to the Trust by the time specified in the Purchase Order and in compliance with the Procedures and the Trust Agreement, a Purchase Order may be cancelled by the Processing Agent and the Authorized Participant will be solely responsible for all costs incurred by the Trust related to the cancelled Order.

 

Section 1.07.  Title to Shares Surrendered for Redemption.  The Authorized Participant represents and warrants to the Trust that in connection with a Redemption Order, the Authorized Participant will have full power and authority to surrender to the Settlement Agent for redemption the corresponding Shares, and upon such surrender the Trust will acquire good and unencumbered title to such Shares, free and clear of all liens, charges, duties imposed on the transfer of assets and encumbrances and not subject to any adverse claims, transferability restrictions (whether arising by operation of law or otherwise), loan, pledge, repurchase or securities lending agreements or other arrangements which would preclude the delivery of such Shares on a “regular way” basis.

 

Section 1.08.  Certain Payments or Distributions.  With respect to any Redemption Order, the Authorized Participant on behalf of itself and any Authorized Participant Client acknowledges and agrees to return to the Trust any payment, distribution or other amount paid to it or an Authorized Participant Client in respect of any property transferred to the Authorized Participant or any Authorized Participant Client that, based on the valuation of such property at the time of transfer, should have been paid to the Trust.  The Trust is entitled to reduce the amount of any property due to the Authorized Participant or any Authorized Participant Client by an amount equal to any payment, distribution or other sum to be paid to the Authorized Participant or to the Authorized Participant Client in respect of any property transferred to the Authorized Participant or any Authorized Participant Client that, based on the valuation of such property at the time of transfer, should be paid to the Trust.  Likewise, the Trust acknowledges and agrees to return to the Authorized Participant or any Authorized Participant Client any payment, distribution or other amount paid to it in respect of any Shares transferred to the Trust that, based on the valuation of such Shares at the time of transfer, should have been paid to the Authorized Participant or such Authorized Participant Client.

 

ARTICLE II

AUTHORIZED REPRESENTATIVES

 

Section 2.01.  Certification.  Concurrently with the execution of the Authorized Participant Agreement, and as requested from time to time by the Trust but no less frequently than annually, the Authorized Participant shall deliver to the Trust a certificate signed by the Authorized Participant’s Secretary or other duly authorized official setting forth the names, e-mail addresses and telephone and facsimile numbers of all persons authorized to give instructions relating to any activity contemplated hereby or any other notice, request or instruction on behalf of the Authorized Participant (each an “Authorized Representative”).  Such certificate may be accepted and relied upon by the Trust as conclusive evidence of the facts set forth therein and shall be considered to be in full force and effect until (i) receipt by the Trust of a superseding certificate in a form approved by the Trust bearing a subsequent date, or (ii) termination of the Authorized Participant Agreement.

 

  

Sch. 2-1

  

 

Section 2.02.  PIN Numbers.  The Processing Agent shall issue to each Authorized Participant a unique personal identification number (“PIN Number”) by which such Authorized Participant shall be identified and instructions issued by the Authorized Participant shall be authenticated.  The PIN Number shall be kept confidential and only provided to Authorized Representatives.  The Authorized Participant may revoke the PIN Number at any time upon written notice to the Processing Agent, and the Authorized Participant shall be responsible for doing so in the event that it becomes aware that an unauthorized person has received access to its PIN Number or has or intends to use the PIN Number in an unauthorized manner.  Upon receipt of such written request, the Processing Agent shall, as promptly as practicable, de-activate the PIN Number.  If an Authorized Participant’s PIN Number is changed, the new PIN Number will become effective on a date mutually agreed upon by the Authorized Participant and the Processing Agent.  The Authorized Participant agrees that, absent the Processing Agent’s fraud, willful misconduct or failure to cancel the PIN Number promptly following a written request to do so from the Authorized Participant or the termination of the Authorized Participant Agreement, none of the Trust, the Trustee or the Processing Agent shall be liable for losses incurred by the Authorized Participant as a result of unauthorized use of the Authorized Participant’s PIN Number prior to the time the Authorized Participant provides notice to the Processing Agent of the termination or revocation of authority pursuant to Section 2.03.

 

Section 2.03.  Termination of Authority.  Upon the termination or revocation of authority of an Authorized Representative by the Authorized Participant, the Authorized Participant shall (i) give immediate written notice of such fact to the Processing Agent and such notice shall be effective upon receipt by the Processing Agent; and (ii) request a new PIN Number.  The Processing Agent shall, as promptly as practicable, de-activate the PIN Number upon receipt of such written notice.

 

Section 2.04.  Verification.  The Processing Agent may assume that all instructions issued to it using the Authorized Participant’s PIN Number have been properly placed by Authorized Representatives, unless the Processing Agent has actual knowledge to the contrary or the Authorized Participant has revoked its PIN Number.  The Processing Agent shall have no duty to verify that an Order has been placed by an Authorized Representative.  The Authorized Participant agrees that the Processing Agent shall not be responsible for any losses incurred by the Authorized Participant as a result of an Authorized Representative identifying himself or herself as a different Authorized Representative or an unauthorized person identifying himself or herself as an Authorized Representative, unless the Processing Agent previously received from the Authorized Participant written notice to revoke its PIN Number.

 

ARTICLE III

STATUS OF THE AUTHORIZED PARTICIPANT

 

Section 3.01.  Clearing Status.  The Authorized Participant represents, covenants and warrants that, as of the date of execution of the Authorized Participant Agreement, and at all times during the term of the Authorized Participant Agreement, the Authorized Participant is and will be entitled to use the clearing and settlement services of each of the national clearing and settlement organizations through which, in compliance with the Procedures, the transactions contemplated hereby will clear and settle.  Any change in the foregoing status of the Authorized Participant shall terminate the Authorized Participant Agreement and the Authorized Participant shall give prompt written notice thereof to the Processing Agent.

 

Section 3.02.  Registration Status.  The Authorized Participant represents and warrants that, unless Section 3.03 is applicable to it, it is (i) registered as a broker-dealer under the Securities Exchange Act of 1934, as amended, (ii) qualified to act as a broker or dealer in the states or other jurisdictions where it transacts business to the extent so required by applicable law, (iii) a member in good standing of FINRA and (iv) if required in connection with its activities hereunder, registered as a futures commission merchant and/or an introducing broker under the Commodity Exchange Act, as amended and a member in good standing of the NFA in each relevant capacity.  The Authorized Participant agrees that it will maintain such registrations, qualifications, and membership in good standing and in full force and effect throughout the term of the Authorized Participant Agreement.  The Authorized Participant further agrees to comply with all federal laws, the laws of the states or other jurisdictions concerned, and the rules and regulations promulgated thereunder, to the extent such laws and regulations are applicable to the Authorized Participant’s transactions in Shares, and with the Constitution, By-Laws and Conduct Rules of FINRA applicable to its activities as an Authorized Participant, that it will comply with all rules and requirements applicable to NFA members, that it will not offer or sell Shares in any state or jurisdiction where they may not lawfully be offered and/or sold, and without limiting the foregoing that it will comply with any applicable transfer restrictions with respect to Shares set forth in the current Prospectus.

 

  

Sch. 2-2

  

 

Section 3.03.  Foreign Status.  If the Authorized Participant is offering and selling Shares in jurisdictions outside the several states, territories and possessions of the United States and is not otherwise required to be registered, qualified, or a member of FINRA or the NFA as set forth in the preceding paragraph, the Authorized Participant nevertheless agrees to observe the applicable laws of the jurisdiction in which such offer and/or sale is made (e.g., it will not offer or sell Shares in any state or jurisdiction where they may not lawfully be offered and/or sold), to comply with the full disclosure requirements of the 1933 Act and the regulations promulgated thereunder and to conduct its business in accordance with the spirit of the FINRA Conduct Rules and the rules and requirements applicable to NFA members.

 

Section 3.04.  Compliance with Certain Laws.  The Authorized Participant is in compliance with all applicable anti-money laundering laws and regulations, including, but not limited to, the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct Terrorism Act.

 

Section 3.05.  Authorized Participant Status.   The Authorized Participant understands and acknowledges that the method by which Baskets of Shares will be created and traded may raise certain issues under applicable securities laws.  For example, because new Baskets of Shares may be issued and sold by the Trust on an ongoing basis, at any point a “distribution”, as such term is used in the 1933 Act, may occur.  The Authorized Participant understands and acknowledges that some activities on its part, depending on the circumstances, may result in its being deemed a participant in a distribution in a manner which could render it a statutory underwriter and subject it to the prospectus delivery and liability provisions of the 1933 Act.

 

ARTICLE IV

ROLE OF AUTHORIZED PARTICIPANT

 

Section 4.01.  Independent Contractor.  The Authorized Participant acknowledges and agrees that for all purposes of the Authorized Participant Agreement, the Authorized Participant will be deemed to be an independent contractor, and will have no authority to act as agent for the Trust or the Trustee in any matter or in any respect.  The Authorized Participant agrees to make itself and its employees available, upon request, during normal business hours to consult with the Trust, the Sponsor or their designees concerning the performance of the Authorized Participant’s responsibilities under the Authorized Participant Agreement; provided, however, that the Authorized Participant shall be under no obligation to divulge or otherwise disclose any information that the Authorized Participant reasonably believes (i) it is under legal obligation not to disclose, or (ii) it is confidential or proprietary in nature.

 

Section 4.02.  Rights and Obligations of DTC Participant.  In executing the Authorized Participant Agreement, the Authorized Participant agrees in connection with any purchase or redemption transactions in which it acts for an Authorized Participant Client or for any other DTC Participant or indirect participant, or any other person on whose behalf it holds Shares, that it shall extend to any such party all of the rights, and shall be bound by all of the obligations, of a DTC Participant in addition to any obligations that it undertakes hereunder or under the Procedures.

 

Section 4.03.  Beneficial Owner Communications.  The Authorized Participant agrees, subject to any limitations arising under federal or state securities laws relating to privacy or other obligations it may have to its customers, to assist the Trust or the Sponsor in determining the ownership level of each beneficial owner relating to positions in Shares that the Authorized Participant may hold as record holder or that may be held through the Authorized Participant as a DTC Participant.  In addition, the Authorized Participant agrees, in accordance with applicable laws, rules and regulations, at the request of the Sponsor or the Trustee to forward to such beneficial owners written materials and communications received from the requesting party in sufficient quantities to allow mailing thereof to such beneficial owners, including notices, annual reports, disclosure or other informational materials and any amendments or supplements thereto that may be required to be sent by the Sponsor or the Trust to such beneficial owners pursuant to the Trust Agreement or applicable law or regulation, or that the Sponsor or the Trust reasonably wishes to distribute, at its own expense, to such beneficial owners.

 

ARTICLE V

TAX MATTERS

 

Section 5.01.  Tax Reporting.

 

(a) An Authorized Participant will provide tax reporting information with respect to the Trust to or for the benefit of taxpayers for whom the Authorized Participant holds Shares as a nominee as required by law.

 

(b) An Authorized Participant will furnish information to the Trust with respect to any taxpayer for whom the Authorized Participant holds Shares as a nominee as required under Treasury regulation section 1.6031(c)-1T or any successor thereto in addition to any information required by other provisions of this Article V.

 

  

Sch. 2-3

  

 

(c) An Authorized Participant will use commercially reasonable efforts to ensure that any taxpayer for whom the Authorized Participant holds Shares as a nominee has provided IRS Form W-9, W-8BEN, or other forms or documentation qualifying as a withholding certificate or documentary evidence or other appropriate documentation within the meaning of Treasury regulation section 1.1441-1(c) or any successor thereto, as necessary to establish an exemption from withholding tax and backup withholding tax with respect to income of the Trust allocable to such investor.  The Authorized Participant will act as an agent of the Trust in collecting and holding such forms or documentation, and annually will provide a copy of such forms to the Trust or its agent.  Upon reasonable request by the Trust or its agent, the Authorized Participant will provide the originals of such forms or documentation to the extent held by the Authorized Participant at that time and will assist the Trust in obtaining such original forms or documentation (or, to the extent originals are not available, copies thereof) from investors or other nominees to the extent not held by the Authorized Participant.  The provisions of this Section 5.01(c) of the Authorized Participant Agreement are subject to, and may be modified by, any agreements between the Trustee, on behalf of the Trust, and an Authorized Participant separate and apart from the Authorized Participant Agreement, that provide otherwise.

 

ARTICLE VI

MARKETING MATERIALS AND REPRESENTATIONS

 

Section 6.01.  Authorized Participant’s Representation.  The Authorized Participant represents, warrants and agrees that it will not make, or permit any of its representatives to make, any representations concerning Shares other than those contained in the Trust’s then current Prospectus or in any promotional materials or sales literature furnished to the Authorized Participant by the Sponsor.  The Authorized Participant agrees not to furnish or cause to be furnished to any person or display or publish any information or materials relating to Shares (including, without limitation, promotional materials and sales literature, advertisements, press releases, announcements, statements, posters, signs or other similar materials), except such information and materials as may be furnished to the Authorized Participant by the Sponsor and such other information and materials as may be approved in writing by the Sponsor.  The Authorized Participant understands that the Trust will not be advertised as offering redeemable securities, and that any advertising materials will prominently disclose that Shares are not redeemable units of beneficial interest in the Trust.  Notwithstanding the foregoing, the Authorized Participant may, without the written approval of the Sponsor, prepare and circulate in the regular course of its business reports, research or similar materials, in compliance with applicable FINRA and NFA rules, that include information, opinions or recommendations relating to the Shares (i) for public dissemination, provided that such reports, research or similar materials compare the relative merits and benefits of Shares with other products and are not used for purposes of marketing Shares and (ii) for internal use by the Authorized Participant.

 

Section 6.02.  Prospectus.

 

(a) The Sponsor will provide, or cause to be provided, to the Authorized Participant copies of the then current Prospectus and any printed supplemental information in reasonable quantities upon request.  The Sponsor will notify the Authorized Participant when a revised, supplemented or amended Prospectus for Shares is available, and make available to the Authorized Participant copies of such revised, supplemented or amended Prospectus at such time and in such quantities as may be reasonable to permit the Authorized Participant to comply with any obligation the Authorized Participant may have to deliver such Prospectus to its customers.  The Sponsor shall be deemed to have complied with this Section 6.02 when the Authorized Participant has received such revised, supplemented or amended Prospectus by e-mail, in printable form, with such number of hard copies as may be agreed from time to time by the parties promptly thereafter.

 

(b) The Authorized Participant represents and warrants to the Sponsor that it will deliver the then current Prospectus upon any sale by it of Shares (other than a redemption) or, if applicable, a notice consistent with Rule 173 under the 1933 Act in lieu of a Prospectus, to the extent so required by applicable law.

 

ARTICLE VII

INDEMNIFICATION; LIMITATION OF LIABILITY

 

Section 7.01.  Indemnification.  The provisions of this Section 7.01 shall survive termination of the Agreement.

 

(a) The Authorized Participant shall indemnify and hold harmless the Sponsor, the Trustee, the Trust, the Processing Agent, their respective subsidiaries, Affiliates, directors, officers, employees and agents, and each person, if any, who controls such persons within the meaning of Section 15 of the 1933 Act (each an “Indemnified Party”) from and against any loss, liability, cost and expense (including attorneys’ fees) incurred by such Indemnified Party as a result of (i) any breach by the Authorized Participant of any representations or warranties of the Authorized Participant (including under Section 3.3 of the Trust Agreement); (ii) any failure on the part of the Authorized Participant to perform any of its obligations set forth in the Authorized Participant Agreement; (iii) any failure by the Authorized Participant to comply with applicable laws, including rules and regulations of self-regulatory organizations, that apply to it; or (iv) actions of such Indemnified Party in reliance upon any instructions issued in accordance with the Procedures reasonably believed by such Indemnified Party to be genuine and to have been given by the Authorized Participant.

 

  

Sch. 2-4

  

 

(b) The Authorized Participant shall not be liable to any Indemnified Party for any damages arising out of (i) mistakes or errors in data provided in connection with purchase or redemption transactions except for data provided by the Authorized Participant, or (ii) mistakes or errors by, or arising out of interruptions or delays of communications with, the Trust or any Indemnified Party.

 

ARTICLE VIII

MISCELLANEOUS

 

Section 8.01.  Commencement of Trading.  The Authorized Participant may not submit an Order until five Business Days after the date of execution of the Authorized Participant Agreement (or such other date as may be designated by the Sponsor).

 

Section 8.02.  Definitions.  The capitalized terms used herein are defined as follows.

 

(a) “1933 Act” means the U.S. Securities Act of 1933, as amended.

 

(b) “Affiliate” shall have the meaning given to it by Rule 501(b) under the 1933 Act.

 

(c) “Agent” means purchasers that have entered into a purchase agreement with the Trust and the Sponsor for the purchase of Shares.

 

(d)  “Authorized Participant” shall have the meaning ascribed to it in the introductory paragraph of the Authorized Participant Agreement.

 

(e) “Authorized Participant Agreement” shall mean an Authorized Participant Agreement (including the Procedures attached thereto) among the Authorized Participant, the Trust and the Sponsor into which these Standard Terms shall have been incorporated by reference.

 

(f) “Authorized Participant Client” means any party on whose behalf the Authorized Participant acts in connection with an Order (whether a customer or otherwise).

 

(g) “Authorized Representative” shall have the meaning ascribed to it in Section 2.01 hereof.

 

(h) “Basket” shall have the meaning ascribed to it in the Authorized Participant Agreement.

 

(i) “Business Day” shall have the meaning ascribed to it in the Procedures.

 

(j) “DTC” means The Depository Trust Company.

 

(k) “FINRA” means the Financial Industry Regulatory Authority, Inc.

 

(l) “Indemnified Party” shall have the meaning ascribed to it in Section 7.01(a) hereof.

 

(m) “NFA” means the National Futures Association.

 

(n) “Prospectus” means the Trust’s current prospectus included in its effective registration statement, as supplemented or amended from time to time.

 

(o) “Shares” shall have the meaning ascribed to it in the Authorized Participant Agreement.

 

All other capitalized terms used in these Standard Terms and not otherwise defined shall have the meaning ascribed to such terms in the Authorized Participant Agreement (including the Procedures attached thereto).

 

Section 8.03.  Third Party Beneficiary.  The parties acknowledge and agree that the Processing Agent and each Indemnified Party not a party to this Agreement shall be a third party beneficiary to the Authorized Participant Agreement, including but not limited to the rights set forth in Section 7.01 of the Standard Terms.

 

[Signature Page Follows]

 

  

Sch. 2-5

  

 

IN WITNESS WHEREOF, the Sponsor and the Trust have executed these Standard Terms as of the date set forth above.

 

	 	
MANAGED EMERGING MARKETS TRUST

	 	  
	 	
By The Bank of New York Mellon, in

	 	
its capacity as Trustee of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
ARTIVEST ADVISORS LLC,

	 	
in its capacity as Sponsor of Managed Emerging Markets Trust

	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  
	 	  	  
	 	
By:

	  
	 	
Name:

	  
	 	
Title:

	  

 

  

  

  

 

Exhibit A

 

CERTIFICATE OF AUTHORIZED REPRESENTATIVES

 

Each of the following employees of [            ] (each, an “Authorized Representative”) is authorized, in accordance with the Authorized Participant Agreement dated as of [                    ] among [            ], the Sponsor and the Trust, to submit Purchase Orders and Redemption Orders on behalf and in the name of [                            ] and to give instructions or any other notice or request on behalf of [            ] with respect to such Orders or any other activity contemplated by the Authorized Participant Agreement.

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

Name:

e-mail Address:

Telephone:

Fax:

 

The undersigned, [name of secretary or authorized officer], [title] of [            ], does hereby certify that the persons listed above have been duly authorized to act as Authorized Representatives pursuant to the Authorized Participant Agreement.

 

	
By:

	  
	
Name:

	  
	
Title:

	  
	
Date:

	  

 

 

Exh. A-1TRUST AGREEMENT

 EXHIBIT 4.1 
  

 
  

ALLY AUTO RECEIVABLES TRUST 2014-SN2 

TRUST AGREEMENT 

BETWEEN 
 ALLY AUTO
ASSETS LLC 
 DEPOSITOR 

AND 
 DEUTSCHE BANK
TRUST COMPANY DELAWARE 
 AART OWNER TRUSTEE 

DATED AS OF OCTOBER 22, 2014 
  

 
  

 TABLE OF CONTENTS 

 

							
	ARTICLE I DEFINITIONS AND INCORPORATION BY REFERENCE	  	 	1	  
	 Section 1.1
	    	 Definitions
	  	 	1	  
		
	ARTICLE II ORGANIZATION	  	 	1	  
	 Section 2.1
	    	 Name
	  	 	1	  
	 Section 2.2
	    	 Office
	  	 	1	  
	 Section 2.3
	    	 Purposes and Powers
	  	 	1	  
	 Section 2.4
	    	 Appointment of AART Owner Trustee
	  	 	2	  
	 Section 2.5
	    	 Initial Capital Contribution of AART Owner Trust Estate
	  	 	2	  
	 Section 2.6
	    	 Declaration of Trust
	  	 	3	  
	 Section 2.7
	    	 Liability of the Certificateholders
	  	 	3	  
	 Section 2.8
	    	 Title to Trust Property
	  	 	3	  
	 Section 2.9
	    	 Situs of Trust
	  	 	3	  
	 Section 2.10
	    	 Representations and Warranties of the Depositor
	  	 	3	  
	 Section 2.11
	    	 Tax Treatment
	  	 	4	  
	 Section 2.12
	    	 Merger and Consolidation of the Depositor
	  	 	5	  
		
	ARTICLE III THE AART CERTIFICATES	  	 	5	  
	 Section 3.1
	    	 Initial Beneficial Ownership
	  	 	5	  
	 Section 3.2
	    	 Form of the Certificates
	  	 	5	  
	 Section 3.3
	    	 Execution, Authentication and Delivery
	  	 	6	  
	 Section 3.4
	    	 Registration of Certificates; Registration of Transfer and Exchange of Certificates
	  	 	6	  
	 Section 3.5
	    	 Mutilated, Destroyed, Lost or Stolen Certificates
	  	 	8	  
	 Section 3.6
	    	 Persons Deemed Certificateholders
	  	 	9	  
	 Section 3.7
	    	 Access to List of Certificateholders’ Names and Addresses
	  	 	9	  
	 Section 3.8
	    	 Maintenance of Corporate Trust Office
	  	 	9	  
	 Section 3.9
	    	 Appointment of Paying Agent
	  	 	9	  
	 Section 3.10
	    	 Depositor as Certificateholder
	  	 	10	  
		
	ARTICLE IV ACTIONS BY AART OWNER TRUSTEE	  	 	10	  
	 Section 4.1
	    	 Prior Notice to Certificateholders with Respect to Certain Matters
	  	 	10	  
	 Section 4.2
	    	 Action by Certificateholders with Respect to Certain Matters
	  	 	11	  
	 Section 4.3
	    	 Action by Certificateholders with Respect to Bankruptcy
	  	 	11	  
	 Section 4.4
	    	 Restrictions on Certificateholders’ Power
	  	 	11	  
	 Section 4.5
	    	 Majority Control
	  	 	12	  
		
	ARTICLE V APPLICATION OF TRUST FUNDS; CERTAIN DUTIES	  	 	12	  
	 Section 5.1
	    	 Establishment of Certificate Distribution Account
	  	 	12	  
	 Section 5.2
	    	 Application of Trust Funds
	  	 	12	  
	 Section 5.3
	    	 Method of Payment
	  	 	13	  
	 Section 5.4
	    	 Accounting and Reports to the Certificateholders, the Internal Revenue Service and Others
	  	 	14	  
	 Section 5.5
	    	 Signature on Returns; Other Tax Matters
	  	 	14	  

  
 i 

							
	ARTICLE VI THE AART OWNER TRUSTEE	  	 	14	  
	 Section 6.1
	    	 Duties of AART Owner Trustee
	  	 	14	  
	 Section 6.2
	    	 Rights of AART Owner Trustee
	  	 	15	  
	 Section 6.3
	    	 Acceptance of Trusts and Duties
	  	 	15	  
	 Section 6.4
	    	 Action upon Instruction by Certificateholders
	  	 	17	  
	 Section 6.5
	    	 Furnishing of Documents
	  	 	18	  
	 Section 6.6
	    	 Representations and Warranties of AART Owner Trustee
	  	 	18	  
	 Section 6.7
	    	 Reliance; Advice of Counsel
	  	 	19	  
	 Section 6.8
	    	 AART Owner Trustee May Own Certificates and Notes
	  	 	19	  
	 Section 6.9
	    	 Compensation and Indemnity
	  	 	19	  
	 Section 6.10
	    	 Replacement of AART Owner Trustee
	  	 	20	  
	 Section 6.11
	    	 Merger or Consolidation of AART Owner Trustee
	  	 	21	  
	 Section 6.12
	    	 Appointment of Co-Trustee or Separate Trustee
	  	 	21	  
	 Section 6.13
	    	 Eligibility Requirements for AART Owner Trustee
	  	 	22	  
	 Section 6.14
	    	 Compliance with the FDIC Rule
	  	 	23	  
		
	ARTICLE VII TERMINATION OF TRUST AGREEMENT	  	 	23	  
	 Section 7.1
	    	 Termination of Trust Agreement
	  	 	23	  
		
	ARTICLE VIII AMENDMENTS	  	 	24	  
	 Section 8.1
	    	 Amendments Without Consent of Certificateholders or Noteholders
	  	 	24	  
	 Section 8.2
	    	 Amendments With Consent of Certificateholders and Noteholders
	  	 	25	  
	 Section 8.3
	    	 Form of Amendments
	  	 	25	  
		
	ARTICLE IX MISCELLANEOUS	  	 	26	  
	 Section 9.1
	    	 No Legal Title to AART Owner Trust Estate
	  	 	26	  
	 Section 9.2
	    	 Limitations on Rights of Others
	  	 	26	  
	 Section 9.3
	    	 Derivative Actions
	  	 	26	  
	 Section 9.4
	    	 Notices
	  	 	26	  
	 Section 9.5
	    	 Severability
	  	 	26	  
	 Section 9.6
	    	 Counterparts
	  	 	27	  
	 Section 9.7
	    	 Successors and Assigns
	  	 	27	  
	 Section 9.8
	    	 No Petition
	  	 	27	  
	 Section 9.9
	    	 No Recourse
	  	 	27	  
	 Section 9.10
	    	 Headings
	  	 	28	  
	 Section 9.11
	    	 Governing Law
	  	 	28	  
	 Section 9.12
	    	 Indemnification by and Reimbursement of the Administrator
	  	 	28	  
	 Section 9.13
	    	 Effect of Amendment and Restatement
	  	 	28	  
	 Section 9.14
	    	 Information to be Provided by the AART Owner Trustee
	  	 	29	  

  
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 EXHIBITS 
  

			
	EXHIBIT A	    	Form of Certificate
	EXHIBIT B	    	Certificate of Trust of Ally Auto Receivables Trust 2014-SN2
	EXHIBIT C	    	Form of Undertaking Letter

  
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 TRUST AGREEMENT, dated as of October 22, 2014, between ALLY AUTO ASSETS LLC, a Delaware
limited liability company, in its capacity as depositor (the “Depositor”), and DEUTSCHE BANK TRUST COMPANY DELAWARE, a Delaware banking corporation, as trustee and not in its individual capacity (the “AART Owner
Trustee”). 
 WHEREAS, the Depositor and the AART Owner Trustee previously entered into a certain trust agreement dated
October 9, 2014 (the “Original Trust Agreement”), which contemplated this Trust Agreement; and 
 WHEREAS, the
Depositor and the AART Owner Trustee desire hereby to amend and restate the Original Trust Agreement in its entirety. 
 NOW, THEREFORE, the
Depositor and the AART Owner Trustee hereby agree as follows: 
 ARTICLE I 

DEFINITIONS AND INCORPORATION BY REFERENCE 

Section 1.1 Definitions. Certain capitalized terms used in this Agreement shall have the respective meanings assigned to them in Part I
of Appendix A to the Administration Agreement, dated as of the date hereof, among the Depositor, the Administrator and Ally Auto Receivables Trust 2014-SN2 (as amended, supplemented or modified from time to time, the “Administration
Agreement”). All references herein to “the Agreement” or “this Agreement” are to this Trust Agreement, and all references herein to Articles, Sections and subsections are to Articles, Sections and subsections of this
Agreement unless otherwise specified. The rules of construction set forth in Part II of such Appendix A shall be applicable to this Agreement. 

ARTICLE II 
 ORGANIZATION

 Section 2.1 Name. The Trust continued hereby shall be known as “Ally Auto Receivables Trust 2014-SN2” in which
name the AART Owner Trustee may conduct the business of the Trust, make and execute contracts and other instruments on behalf of the Trust and sue and be sued on behalf of the Trust. The AART Owner Trustee has filed the Certificate of Trust on
behalf of the Trust pursuant to Section 3810(a) of the Statutory Trust Act. 
 Section 2.2 Office. The office of the Trust
shall be in care of the AART Owner Trustee at the Corporate Trust Office or at such other address in Delaware as the AART Owner Trustee may designate by written notice to the Certificateholders and the Depositor. 

Section 2.3 Purposes and Powers. The purpose of the Trust is, and the Trust shall have the power and authority, to engage in the
following activities: 
 (a) to acquire, manage and hold the Secured Notes and the other assets of the Trust; 

 (b) to issue the Notes pursuant to the AART Indenture and issue the Certificates pursuant to this
Agreement, and to sell, transfer or exchange the Notes and the Certificates; 
 (c) to acquire certain property and assets from the
Depositor on the Closing Date pursuant to the Trust Sale Agreement and any other Further Transfer Agreement, to make payments to the Noteholders and the Certificateholders, to make deposits into and withdrawals from the Reserve Account and to pay
the organizational, start-up and transactional expenses of the Trust; 
 (d) to assign, grant, transfer, pledge, mortgage and convey the
AART Trust Estate pursuant to the terms of the AART Indenture and to hold, manage and distribute to the Certificateholders pursuant to the terms of this Agreement and the Trust Sale Agreement any portion of the AART Trust Estate released from the
Lien of, and remitted to the Trust pursuant to, the AART Indenture; 
 (e) to enter into and perform its obligations and exercise its rights
under the AART Transaction Documents and ACOLT Transaction Documents to which it is to be a party and to execute the VAULT Security Agreement and the VAULT Transfer Direction; 

(f) to enter into interest rate swaps and caps and forward contracts, only in connection with the Notes and the Certificates; 

(g) 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; and 
 (h) subject to compliance with the AART Transaction Documents, to engage in such
other activities as may be required in connection with conservation of the AART Owner Trust Estate and the making of distributions to the Securityholders. 

The Trust 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 or the other AART Transaction Documents. 
 Section 2.4 Appointment of AART Owner Trustee. The Depositor hereby
appoints the AART Owner Trustee as trustee of the Trust, to have all the rights, powers and duties set forth herein. 
 Section 2.5
Initial Capital Contribution of AART Owner Trust Estate. The Depositor has sold, assigned, transferred, conveyed and set over to the AART Owner Trustee, as of October 9, 2014, the sum of $1. The AART Owner Trustee hereby acknowledges
receipt in trust from the Depositor, as of October 9, 2014, of the foregoing contribution, which constituted the initial AART Owner Trust Estate. The Depositor shall pay organizational expenses of the Trust as they may arise or shall, upon the
request of the AART Owner Trustee, promptly reimburse the AART Owner Trustee for any such expenses paid by the AART Owner Trustee. 

  
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 Section 2.6 Declaration of Trust. The AART Owner Trustee hereby declares that it
shall hold the AART Owner Trust Estate (in the name of the Trust and not in the AART Owner Trustee’s name for the Trust, except as required by, and in accordance with, Section 2.8) 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 Trust under the AART Transaction Documents. It is the intention of the parties hereto that the Trust constitute a statutory trust under the Statutory
Trust Act, that this Agreement constitute the governing instrument of such statutory trust and that the Certificates represent the beneficial interests therein. The rights of the Certificateholders shall be determined as set forth herein and in the
Statutory Trust Act and the relationship between the parties hereto created by this Agreement shall not constitute indebtedness for any purpose. Effective as of the date hereof, the AART Owner Trustee shall have all rights, powers and duties set
forth herein and in the Statutory Trust Act with respect to accomplishing the purposes of the Trust. 
 Section 2.7 Liability of the
Certificateholders. Certificateholders and holders of beneficial interests therein 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 2.8 Title to Trust Property. Legal title to all the AART Owner Trust Estate shall be
vested at all times in the Trust as a separate legal entity except where applicable law in any jurisdiction requires title to any part of the AART Owner Trust Estate to be vested in a trustee or trustees, in which case title shall be deemed to be
transferred to and vested in the AART Owner Trustee, a co-trustee and/or a separate trustee, as the case may be. Any such trustee shall take such part of the AART Owner Trust Estate subject to the security interest of the AART Indenture Trustee
therein established under the AART Indenture. Such trustee’s acceptance of its appointment shall constitute acknowledgment of such security interest and shall constitute a Grant to the AART Indenture Trustee of a security interest in all
property held by such trustee. Any such trustee shall prepare and file all such financing statements naming such trustee as debtor that are necessary or advisable to perfect, make effective or continue the Lien of the AART Indenture Trustee. 

Section 2.9 Situs of Trust. The Trust shall be located and administered in the States of Delaware or New York. All bank accounts
maintained by the AART Owner Trustee on behalf of the Trust shall be located in the State of Delaware or the State of New York. The Trust shall not have any employees in any State other than the State of Delaware; provided, however, that nothing
herein shall restrict or prohibit the AART Owner Trustee from having employees within or without the State of Delaware. Payments shall be received by the Trust only in the State of Delaware or the State of New York, and payments shall be made by the
Trust only from the State of Delaware or the State of New York. The only office of the Trust shall be the Corporate Trust Office of the AART Owner Trustee in the State of Delaware. 

Section 2.10 Representations and Warranties of the Depositor. The Depositor hereby represents and warrants to the AART Owner
Trustee that: 
 (a) The Depositor has been duly formed and is validly existing as an entity 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 presently owned and such business is presently conducted and had at all relevant times, and now has, power, authority and legal right to
acquire, own and transfer the Secured Notes contemplated to be transferred to the Trust pursuant to the Trust Sale Agreement. 

  
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 (b) The Depositor is duly qualified to do business as a foreign entity in good standing, and has
obtained all necessary licenses and approvals, in all jurisdictions in which the ownership or lease of property or the conduct of its business requires such qualifications. 

(c) The Depositor has the power and authority to execute and deliver this Agreement and any other AART Transaction Documents to which the
Depositor is a party, and to carry out their respective terms, the Depositor has full power and authority to sell and assign the property to be sold and assigned to and deposited with the Trust as part of the AART Owner Trust Estate and the
Depositor has duly authorized such sale and assignment to the Trust by all necessary limited liability company action; and the execution, delivery and performance of this Agreement and any other AART Transaction Documents to which the Depositor is a
party have been duly authorized by the Depositor by all necessary limited liability company action. 
 (d) The consummation of the
transactions contemplated by this Agreement and any other AART Transaction Documents to which the Depositor is a party, and the fulfillment of the terms of this Agreement and any other AART Transaction Documents to which the Depositor is a party, 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 (or similar organizational
documents) of the Depositor, or any indenture, agreement or other instrument to which the Depositor is a party or by which it is bound, or result in the creation or imposition of any Lien upon any of its properties pursuant to the terms of any such
indenture, agreement or other instrument (other than pursuant to the AART Transaction Documents), or violate any law or, to the best of the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any court or of any
federal or State regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or any of its properties. 

Section 2.11 Tax Treatment. As long as the Depositor or an Affiliate that is treated as the same Person as the Depositor for
federal income tax purposes is the sole owner of the Certificates, the Depositor and the AART Owner Trustee, by entering into this Agreement, express their intention that the Trust shall be disregarded for federal income tax purposes and shall be
treated as a division of the Depositor (or, if the Depositor is disregarded as a separate entity for federal income tax purposes, the Depositor’s first direct or indirect parent entity that is not disregarded as a separate entity for federal
income tax purposes). If the Depositor is not the sole owner of the Certificates, through sale of the Certificates, issuance by the Trust of additional Certificates to a Person other than the Depositor or otherwise, the Depositor and the AART Owner
Trustee, by entering into this Agreement, and the Certificateholders, by acquiring any Certificates or interest therein, (i) express their intention that the Certificates shall qualify as equity interests in either (A) a division of an
entity that is not disregarded as a separate entity for federal income tax purposes, or (B) a partnership for federal income tax purposes if the 

  
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Certificates are owned by more than one Person (as long as (1) such Persons are not disregarded as separate entities for federal income tax purposes and (2) if such Persons are
disregarded as separate entities for federal income tax purposes, such Persons are not treated as a division of the same Person) and (ii) unless otherwise required by the appropriate taxing authorities, agree to treat the Certificates as equity
interests in an entity as described in clause (i) of this Section 2.11 for the purposes of federal income taxes, State and local income and franchise taxes, and any other taxes imposed upon, measured by, or based upon gross or net
income. The parties agree that, unless otherwise required by appropriate tax authorities, the Trust shall file or cause to be filed annual or other necessary returns, reports and other forms consistent with such characterization of the Trust for
such tax purposes. 
 Section 2.12 Merger and Consolidation of the Depositor. Any corporation, limited liability company or
other entity (i) into which the Depositor may be merged or with which it may be consolidated, (ii) resulting from any merger, or consolidation to which the Depositor shall be a party, (iii) succeeding to the business of the Depositor,
or (iv) 25% or more of the voting stock (or, if not a corporation, other voting interests) of which is owned directly or indirectly by Ally Financial or General Motors, which corporation or entity in any of the foregoing cases executes an
agreement of assumption to perform every obligation of the Depositor under this Agreement and the other AART Transaction Documents, shall be the successor to the Depositor under this Agreement without the execution or filing of any document or any
further act on the part of any of the parties to this Agreement. 
 ARTICLE III 

THE AART CERTIFICATES 

Section 3.1 Initial Beneficial Ownership. Since the formation of the Trust by the contribution by the Depositor pursuant to
Section 2.5, the Depositor has been the sole beneficial owner of the Trust. 
 Section 3.2 Form of the Certificates.

 (a) The Certificates shall be substantially in the form of Exhibit A. The Certificates shall represent the entire beneficial
interest in the Trust. The Certificates shall be executed on behalf of the Trust by manual or facsimile signature of a Responsible Officer of the AART 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 Trust, shall be duly issued, fully paid and non-assessable beneficial interests in the Trust, 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) The Certificates shall be typewritten, printed, lithographed or engraved or produced by any combination of these methods (with or without
steel engraved borders) all as determined by the Authorized Officer of the AART Owner Trustee executing such Certificates, as evidenced by their execution of such Certificates. On the Closing Date, all of the Certificates shall be issued to the
Depositor as fully registered Certificates. 
 (c) The Certificates shall be issued in fully-registered form. The terms of the Certificates
set forth in Exhibit A shall form part of this Agreement. 

  
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 Section 3.3 Execution, Authentication and Delivery. Concurrently with the sale of the
Secured Notes to the Trust pursuant to the Trust Sale Agreement, the AART Owner Trustee shall cause a single Certificate representing the entire beneficial interest in the Trust to be executed on behalf of the Trust, authenticated and delivered to
or upon the written order of the Depositor, signed by its chairman of the board, its president or any vice president, without further limited liability company action by the Depositor. Such Certificate shall be issued to and held by the Depositor,
as the initial Certificateholder. No Certificate shall entitle its holder to any benefit under this Agreement, or shall 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 AART Owner Trustee or Deutsche Bank Trust Company Americas, as the AART Owner Trustee’s authenticating agent, by manual signature. 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. 

Section 3.4 Registration of Certificates; Registration of Transfer and Exchange of Certificates. 

(a) The Certificate Registrar shall keep or cause to be kept, at the office or agency maintained pursuant to Section 3.8, a
Certificate Register in which, subject to such reasonable regulations as it may prescribe, the AART Owner Trustee shall provide for the registration of Certificates and of transfers and exchanges of Certificates as provided herein. Deutsche Bank
Trust Company Americas shall be the initial Certificate Registrar. Upon any resignation of a Certificate Registrar, the AART Owner Trustee shall promptly appoint a successor or, if it elects not to make such an appointment, assume the duties of
Certificate Registrar. 
 (b) The Certificateholder may at any time, without consent of the Noteholders, sell, transfer, convey or assign in
any manner its rights to and interests in the Certificates, but only if: (i) such action will not result in a reduction or withdrawal of the rating of any class of Notes, (ii) the Certificateholder provides to the AART Owner Trustee and
the AART Indenture Trustee an Opinion of Counsel that such action shall not cause the Trust to be treated as an association (or publicly traded partnership) taxable as a corporation for federal income tax purposes, (iii) such transferee or
assignee agrees to take positions for tax purposes consistent with the tax positions set forth in Section 2.11 of this Agreement agreed to be taken by the Certificateholder, (iv) the conditions set forth in
Section 3.4(g) and (h) have been satisfied, and (v) in connection with any transfer of less than all of the interests in the Certificates, the transferor and the transferee specify the respective interests in the
Certificates to be held by the transferor and transferee, which interests may be determined by a formula or on any other basis agreed by transferor and transferee. No Certificate (other than the Certificates issued and held by the Depositor) may be
subdivided upon transfer or exchange in a manner such that the resulting Certificate represents less than a 2.00% fractional undivided interest in the Trust or such other amount as the Depositor may determine in order to prevent the Trust from being
a “publicly traded partnership” under Section 7704 of the Code, but in no event less than a 1.00% fractional undivided interest in the Trust. In addition, no transfer of a Certificate shall be registered unless

  
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the transferee shall have provided to the AART Owner Trustee and the Certificate Registrar an Opinion of Counsel that in connection with such transfer no registration of the Certificates is
required under the Securities Act or applicable State securities law or that such transfer is otherwise being made in accordance with all applicable federal and State securities laws. If agreed by transferor and transferee, different interests may
be used for distributions of proceeds and for purposes of voting the Certificates, and the transferor shall notify the AART Owner Trustee of any such agreement in connection with such transfer. 

(c) In the event that the Depositor is no longer the sole Certificateholder, the Administrator shall promptly prepare amendments (subject to
the provisions regarding amendments in the applicable AART Transaction Documents) to the AART Transaction Documents to the extent necessary to reflect the establishment of the Certificate Distribution Account and the making of distributions to the
Certificateholders and such other matters as shall be agreed between the Depositor and the AART Owner Trustee. The expense of the foregoing amendments shall be paid by the Administrator. 

(d) Upon surrender for registration of transfer of any Certificates at the office or agency maintained pursuant to Section 3.8,
the AART Owner Trustee shall execute on behalf of the Trust, authenticate and deliver (or shall cause Deutsche Bank Trust Company Americas, as its authenticating agent to authenticate and deliver), in the name of the designated transferee or
transferees, one or more new Certificates of a like aggregate percentage interest in the Trust dated the date of authentication by the AART Owner Trustee or any authenticating agent. 

(e) At the option of a Holder, Certificates may be exchanged for other Certificates of a like aggregate percentage interest in the Trust, as
shown on the applicable Certificates, upon surrender of the Certificates to be exchanged at the office or agency maintained pursuant to Section 3.8. Whenever any Certificates are so surrendered for exchange, the AART Owner Trustee shall
execute on behalf of the Trust, authenticate and deliver (or shall cause Deutsche Bank Trust Company Americas, as its authenticating agent to authenticate and deliver) one or more Certificates dated the date of authentication by the AART Owner
Trustee or any authenticating agent. Such Certificates shall be delivered to the Holder making the exchange. 
 (f) Every Certificate
presented or surrendered for registration of transfer or exchange shall be accompanied by a written instrument of transfer in form satisfactory to the AART Owner Trustee and the Certificate Registrar duly executed by the Holder or his attorney duly
authorized in writing and such other documents and instruments as may be required by Section 3.4(b). Each Certificate surrendered for registration of transfer or exchange shall be canceled and subsequently destroyed or otherwise disposed
of by the AART Owner Trustee or Certificate Registrar in accordance with its customary practice. 
 (g) The AART Owner Trustee or the
Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge that may be imposed and any other expenses of the AART Owner Trustee in connection with any transfer or exchange of Certificates. 

  
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 (h) The Certificates may not be acquired by or for the account of a Benefit Plan other than an
“insurance company general account,” as defined in Prohibited Transaction Class Exemption 95-60, whose underlying assets include less than 25% plan assets and for which the purchase and holding of Certificates is eligible and satisfies all
conditions for relief under Prohibited Transaction Class Exemption 95-60. The Certificates also may not be acquired by or for the account of an employee benefit plan or plan that is not subject to the provisions of Title I of ERISA or
Section 4975 of the Code (including foreign or governmental plans) if such acquisition would result in a non-exempt prohibited transaction under, or a violation of, any applicable law that is substantially similar to Title I of ERISA or
Section 4975 of the Code. If requested to do so by the Depositor, each purchaser and transferee of a Certificate shall execute and deliver to the AART Owner Trustee an undertaking letter substantially in the form attached as Exhibit C.

 (i) The Certificates may (A) only be acquired by or for the account of a Person who is a United States Person (within the
meaning of Section 7701(a)(30) of the Code) and (B) not be acquired by or for the account of a Special Pass-Through Entity. For the purposes of this Section 3.5(i), “Special Pass-Through Entity” means a grantor
trust, S corporation, or partnership where more than 50% of the value of a beneficial owner’s interest in such pass through entity is attributable to the pass-through entity’s interest in the Certificates. 

Section 3.5 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, the AART Owner Trustee and the Trust such security or indemnity as may be required by them to hold each of them
harmless, then, in the absence of notice to the Certificate Registrar or the AART Owner Trustee that such Certificate has been acquired by a protected purchaser, the AART Owner Trustee shall execute on behalf of the Trust and the AART Owner Trustee
shall authenticate and deliver (or shall cause Deutsche Bank Trust Company Americas, as its authenticating agent to authenticate and deliver), in exchange for or in lieu of any such mutilated, destroyed, lost or stolen Certificate, a replacement
Certificate of a like aggregate percentage interest in the Trust, as shown on the Certificate; provided, however, that if any such destroyed, lost or stolen Certificate, but not a mutilated Certificate, shall have become or within
seven (7) days shall be payable, then instead of issuing a replacement Certificate the AART Owner Trustee may make distributions to such destroyed, lost or stolen Certificate when so payable. 

(b) If, after the delivery of a replacement Certificate or payment in respect of a destroyed, lost or stolen Certificate pursuant to
Section 3.5(a), a protected purchaser of the original Certificate in lieu of which such replacement Certificate was issued presents for payment or distribution such original Certificate, the AART Owner Trustee shall be entitled to
recover such replacement Certificate (and any distributions or payments made with respect thereto) or such payment or distribution from the Person to whom it 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 AART Owner Trustee in connection therewith. 

  
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 (c) In connection with the issuance of any replacement Certificate under this
Section 3.5, the AART Owner Trustee may require the payment by the Holder of such Certificate of a sum sufficient to cover any tax or other governmental charge that may be imposed in relation thereto and any other reasonable expenses
(including the fees and expenses of the AART Owner Trustee and the Certificate Registrar) connected therewith. 
 (d) Any duplicate
Certificate issued pursuant to this Section 3.5 in replacement of any mutilated, destroyed, lost or stolen Certificate shall constitute an original additional beneficial interest in the Trust, whether or not the mutilated, destroyed,
lost or stolen Certificate shall be found at any time or be enforced 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. 

(e) The provisions of this Section 3.5 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 3.6 Persons Deemed
Certificateholders. Prior to due presentation of a Certificate for registration of transfer, the AART Owner Trustee or the Certificate Registrar may treat the Person in whose name any Certificate shall be registered in the Certificate Register
as the Certificateholder of such Certificate for the purpose of receiving distributions pursuant to Article V and for all other purposes whatsoever, and neither the AART Owner Trustee nor the Certificate Registrar shall be affected by any
notice to the contrary. 
 Section 3.7 Access to List of Certificateholders’ Names and Addresses. The Certificate Registrar
shall furnish or cause to be furnished to the Administrator and the Depositor, within fifteen (15) days after receipt by the Certificate Registrar of a request therefor from the Administrator or the Depositor, in writing, a list of the names
and addresses of the Certificateholders as of the most recent Record Date. Each Holder, by receiving and holding a Certificate, shall be deemed to have agreed not to hold any of the Administrator, the Depositor, the Certificate Registrar or the AART
Owner Trustee accountable by reason of the disclosure of its name and address, regardless of the source from which such information was derived. 

Section 3.8 Maintenance of Corporate Trust Office. The AART Owner Trustee shall maintain in the Borough of Manhattan, The City of
New York, an office or offices or agency or agencies where Certificates may be surrendered for registration of transfer or exchange and where notices and demands to or upon the AART Owner Trustee in respect of the Certificates and the other AART
Transaction Documents may be served. The AART Owner Trustee initially designates the offices of Deutsche Bank Trust Company Americas, 60 Wall Street, New York, New York 10005, as its principal office for such purposes. The AART Owner Trustee shall
give prompt written notice to the Depositor, to the Administrator, and to the Certificateholders of any change in the location of the Certificate Register or any such office or agency. 

Section 3.9 Appointment of Paying Agent. Except as otherwise provided in Section 5.2, the Paying Agent shall make
distributions to Certificateholders from the Certificate Distribution Account pursuant to Section 5.2 and shall report the amounts of such distributions to the AART Owner Trustee and the Administrator; provided, however,
that no such reports shall 

  
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be required so long as the Depositor is the sole Certificateholder. Any Paying Agent shall have the revocable power to withdraw funds from the Certificate Distribution Account for the purpose of
making the distributions referred to above. The AART Owner Trustee may revoke such power and remove the Paying Agent if the AART 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 Deutsche Bank Trust Company Americas, and any co-paying agent chosen by Deutsche Bank Trust Company Americas, and acceptable to the AART Owner Trustee. Deutsche Bank Trust
Company Americas shall be permitted to resign as Paying Agent upon thirty (30) days’ written notice to the AART Owner Trustee. If Deutsche Bank Trust Company Americas shall no longer be the Paying Agent, the AART Owner Trustee shall
appoint a successor to act as Paying Agent (which shall be a bank or trust company). The AART Owner Trustee shall cause such successor Paying Agent or any additional Paying Agent appointed by the AART Owner Trustee to execute and deliver to the AART
Owner Trustee an instrument in which such successor Paying Agent or additional Paying Agent shall agree with the AART Owner Trustee that as Paying Agent, such successor Paying Agent or additional Paying Agent shall 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 AART Owner Trustee and upon
removal of a Paying Agent such Paying Agent shall also return all funds in its possession to the AART Owner Trustee. The provisions of Sections 6.3, 6.6, 6.7 and 6.9 shall apply to the AART Owner Trustee also in its role
as Paying Agent or Certificate Registrar, for so long as the AART Owner Trustee shall act as Paying Agent or Certificate Registrar and, to the extent applicable, to any other paying agent, certificate registrar or authenticating agent appointed
hereunder. Any reference in this Agreement to the Paying Agent shall include any co-paying agent unless the context requires otherwise. 

Section 3.10 Depositor as Certificateholder. The Depositor in its individual or any other capacity may become the owner or pledgee
of Certificates and may otherwise deal with the AART Owner Trustee or its Affiliates as if it were not the Depositor. 
 ARTICLE IV

 ACTIONS BY AART OWNER TRUSTEE 

Section 4.1 Prior Notice to Certificateholders with Respect to Certain Matters. The AART Owner Trustee shall not take action with
respect to the following matters, unless (i) the AART Owner Trustee shall have notified the Certificateholders in writing of the proposed action at least thirty (30) days and not more than forty-five (45) days before the taking of
such action, and (ii) the Certificateholders shall not have notified the AART 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 Trust (other than an action to collect on a Secured Note or an action by the AART Indenture
Trustee pursuant to the AART Indenture) and the compromise of any action, claim or lawsuit brought by or against the Trust (other than an action to collect on a Secured Note or an action by the AART Indenture Trustee pursuant to the AART Indenture);

  
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 (b) except as may be required under the Statutory Trust Act, the election by the Trust to file an
amendment to the Certificate of Trust, a conformed copy of which is attached hereto as Exhibit B; 
 (c) the amendment of the AART
Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is required; 
 (d) the amendment of the AART
Indenture by a supplemental indenture in circumstances where the consent of any Noteholder is not required and such amendment materially adversely affects the interests of the Certificateholders; 

(e) the amendment, change or modification of the Trust Sale Agreement, except to cure any ambiguity or to amend or supplement any provision in
a manner that would not materially adversely affect the interests of the Certificateholders; or 
 (f) the appointment pursuant to the AART
Indenture of a successor Note Registrar, Paying Agent or AART Indenture Trustee or pursuant to this Agreement of a successor Certificate Registrar, or the consent to the assignment by the Note Registrar, Paying Agent or AART Indenture Trustee or
Certificate Registrar of its obligations under the AART Indenture or this Agreement, as applicable. 
 Section 4.2 Action by
Certificateholders with Respect to Certain Matters. The AART Owner Trustee shall not have the power, except upon the written direction of the Certificateholders, to remove the Administrator under the Administration Agreement pursuant to
Section 7.02 thereof, appoint a successor Administrator under the Administration Agreement or except as expressly provided in the AART Transaction Documents, sell the Secured Notes or any interest therein after the termination of the AART
Indenture. The AART Owner Trustee shall take the actions referred to in the preceding sentence only upon written instructions signed by the Certificateholders. 

Section 4.3 Action by Certificateholders with Respect to Bankruptcy. Notwithstanding any prior termination of this Agreement, the
AART Owner Trustee shall not have the power to commence a voluntary case under Title 11 of the United States Code or any successor provision relating to the Trust without the unanimous prior approval of all Certificateholders (including the
Depositor) and the delivery to the AART Owner Trustee by each such Certificateholder of a certificate certifying that such Certificateholder reasonably believes that the Trust is insolvent; provided, however, that under no
circumstances shall the AART Owner Trustee commence or join in commencing any such case prior to the date that is one year and one day after the termination of the Trust. 

Section 4.4 Restrictions on Certificateholders’ Power. The Certificateholders shall not direct the AART Owner Trustee to take
or refrain from taking any action if such action or inaction would be contrary to any obligation of the Trust or the AART Owner Trustee under this Agreement, including Section 2.3 of this Agreement, or any of the other AART Transaction
Documents, nor shall the AART Owner Trustee be obligated to follow any such direction, if given. The Certificateholders shall not and shall not direct the AART Owner Trustee to take action that would violate the provisions of Section 6.1
and, if given, the AART Owner Trustee shall not be obligated to follow any such direction. 

  
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 Section 4.5 Majority Control. Except as expressly provided herein, any action that
may be taken or consent that may be given or withheld by the Certificateholders under this Agreement shall be effective if such action is taken or such consent is given or withheld by the Holders of Certificates evidencing not less than a majority
of the Voting Interests as of the close of the preceding Distribution Date. Except as expressly provided herein, any written notice, instruction, direction or other document of the Certificateholders delivered pursuant to this Agreement shall be
effective if signed by Holders of Certificates evidencing not less than a majority of the Voting Interests at the time of the delivery of such notice. 

ARTICLE V 
 APPLICATION
OF TRUST FUNDS; CERTAIN DUTIES 
 Section 5.1 Establishment of Certificate Distribution Account. 

(a) Except as otherwise provided in Section 5.2, the Administrator, for the benefit of the Certificateholders, shall establish and
maintain in the name of the Trust an Eligible Deposit Account known as the Ally Auto Receivables Trust 2014-SN2 Certificate Distribution Account (the “Certificate Distribution Account”), bearing an additional designation clearly
indicating that the funds deposited therein are held for the benefit of the Certificateholders. 
 (b) The Trust shall possess all right,
title and interest in and to all funds on deposit from time to time in the Certificate Distribution Account and in all proceeds thereof. Except as otherwise provided herein, in the AART Indenture, or in the Administration Agreement, the Certificate
Distribution Account shall be under the sole dominion and control of the AART Owner Trustee for the benefit of the Certificateholders. If, at any time, the Certificate Distribution Account ceases to be an Eligible Deposit Account, the AART Owner
Trustee (or the Administrator on behalf of the AART Owner Trustee, if the Certificate Distribution Account is not then held by the AART Owner Trustee or an Affiliate thereof) shall within ten (10) Business Days (or such longer period, not to
exceed thirty (30) calendar days, as to which each Rating Agency may consent) establish a new Certificate Distribution Account as an Eligible Deposit Account and shall transfer any cash and/or any investments to such new Certificate
Distribution Account. 
 Section 5.2 Application of Trust Funds. 

(a) On each Distribution Date, the AART Owner Trustee or the Paying Agent shall distribute to the Certificateholders, on a pro rata basis,
amounts equal to the amounts deposited in the Certificate Distribution Account pursuant to Sections 4.05 and 8.01(b) of the Administration Agreement on or prior to such Distribution Date. Notwithstanding the foregoing or anything else to the
contrary in this Agreement or the other AART Transaction Documents, if and for so long as Certificates representing in the aggregate a 100% beneficial interest in the Trust are held by the Depositor or another subsidiary of Ally Bank, (i) no
Certificate Distribution Account shall be required to be established or maintained and (ii) all distributions and payments on the Certificates (including the final distribution as contemplated by Section 7.1(c)) required

  
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hereunder or under the Administration Agreement shall be made directly to the Certificateholder by the AART Indenture Trustee (whether or not the Administration Agreement otherwise contemplates
deposit into the Certificate Distribution Account) and the AART Owner Trustee shall have no duty or liability to see to such distribution. 

(b) On each Distribution Date, the AART Owner Trustee shall send to each Certificateholder the statement provided to the AART Owner Trustee by
the Administrator pursuant to Section 4.07(a) of the Administration Agreement on such Distribution Date setting forth, among other things, the amount distributed on the Certificates and the Administration Fee with respect to such Distribution
Date or Monthly Period, as applicable; provided, however, that no such statement shall be required to be sent by the AART Owner Trustee if and for so long as the Depositor or another subsidiary of Ally Bank is the sole
Certificateholder. 
 (c) If any withholding tax is imposed on the Trust’s payment (or allocations of income) to a Certificateholder,
such tax shall reduce the amount otherwise distributable to the Certificateholder in accordance with this Section 5.2; provided, however, that the AART Owner Trustee or the Paying Agent shall not have an obligation to
withhold any such amount if and for so long as the Depositor is the sole Certificateholder. The AART Owner Trustee or the Paying Agent is hereby authorized and directed to retain from amounts otherwise distributable to the Certificateholders
sufficient funds for the payment of any tax that is legally owed by the Trust (but such authorization shall not prevent the AART Owner Trustee or the Paying Agent from contesting any such tax in appropriate proceedings and withholding payment of
such tax, if permitted by law, pending the outcome of such proceedings). 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
Trust and remitted to the appropriate taxing authority. If 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 AART Owner Trustee or the Paying Agent may
in its sole discretion withhold such amounts in accordance with this Section 5.2(c). If a Certificateholder wishes to apply for a refund of any such withholding tax, the AART Owner Trustee or the Paying Agent shall reasonably cooperate
with such Certificateholder in making such claim so long as such Certificateholder agrees to reimburse the AART Owner Trustee or the Paying Agent for any out-of-pocket expenses incurred. 

(d) If the AART Indenture Trustee holds escheated funds for payment to the Trust pursuant to Section 3.3(e) of the AART Indenture, the
AART Owner Trustee shall, upon notice from the AART Indenture Trustee that such funds exist, submit on behalf of the Trust an Issuing Entity Order to the AART Indenture Trustee pursuant to Section 3.3(e) of the AART Indenture instructing the
AART Indenture Trustee to pay such funds to or at the order of the Depositor. 
 Section 5.3 Method of Payment. Subject to
Section 7.1(c), distributions required to be made to Certificateholders on any Distribution Date shall be made to each Certificateholder of record on the related Record Date by wire transfer, in immediately available funds, to the
account of such Holder at a bank or other entity having appropriate facilities therefore, if such Certificateholder shall have provided to the Certificate Registrar appropriate written instructions at least five (5) Business Days prior to such
Record Date or if not, by check mailed to such Certificateholder at the address of such Certificateholder appearing in the Certificate Register. 

  
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 Section 5.4 Accounting and Reports to the Certificateholders, the Internal Revenue
Service and Others. The AART Owner Trustee shall maintain (or cause to be maintained) the books of the Trust on a calendar year basis on the accrual method of accounting, deliver to each Certificateholder, as may be required by the Code and
applicable Treasury Regulations or otherwise, such information as may be required to enable each Certificateholder to prepare its federal income tax return, file such tax returns relating to the Trust 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 Trust’s characterization as an entity described in clause (a) of Section 2.11 for federal income
tax purposes, cause such tax returns to be signed in the manner required by law and collect or cause to be collected any withholding tax as described in and in accordance with Section 5.2(c) with respect to income or distributions to
Certificateholders. If the Trust were to become a partnership in accordance with Section 2.11 or the Internal Revenue Service were to contend successfully that the Trust is not a disregarded entity but is rather a partnership for federal
income tax purposes, the Trust shall allocate items of income, gain, deduction and loss to the partners of the Trust in accordance with their economic interests in the Trust. With respect to interest expense of the Trust, the Trust shall allocate to
the Certificateholders their share of the entire amount of such interest expense. 
 Section 5.5 Signature on Returns; Other Tax
Matters. The AART Owner Trustee shall sign on behalf of the Trust any and all tax returns of the Trust, unless applicable law requires a Certificateholder to sign such documents, in which case such documents shall be signed by the Depositor. To
the extent one may be required, the Depositor shall be the “tax matters partner” of the Trust pursuant to the Code. 
 ARTICLE
VI 
 THE AART OWNER TRUSTEE 

Section 6.1 Duties of AART Owner Trustee. 

(a) The AART Owner Trustee undertakes to perform such duties, and only such duties, as are specifically set forth in this Agreement and the
other AART Transaction Documents, including the administration of the Trust in the interest of the Certificateholders, subject to the AART Transaction Documents and in accordance with the provisions of this Agreement. No implied covenants or
obligations shall be read into this Agreement. 
 (b) Notwithstanding the foregoing, the AART Owner Trustee shall be deemed to have
discharged its duties and responsibilities hereunder and under the other AART Transaction Documents to the extent the Administrator has agreed in the Administration Agreement to perform any act or to discharge any duty of the Trust or AART Owner
Trustee hereunder or under any other AART Transaction Document, and the AART Owner Trustee shall not be liable for the default or failure of the Administrator to carry out its obligations under the Administration Agreement. 

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

  
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 (d) The AART Owner Trustee may not be relieved from liability for its own negligent action, its
own negligent failure to act or its own willful misconduct, except that: 
 (i) this Section 6.1(d) shall not limit the effect
of Section 6.1(a) or (b); 
 (ii) the AART Owner Trustee shall not be liable for any error of judgment made in good
faith by a Responsible Officer unless it is proved that the AART Owner Trustee was negligent in ascertaining the pertinent facts; 
 (iii)
the AART Owner Trustee shall not be liable with respect to any action it takes or omits to take in good faith in accordance with a direction received by it pursuant to Section 4.1, 4.2 or 6.4; and 

(iv) the AART Owner Trustee shall not be personally liable for special, consequential or punitive damages, however styled, including lost
profits. 
 (e) Subject to Sections 5.1 and 5.2, monies received by the AART Owner Trustee hereunder need not be segregated in
any manner except to the extent required by law or the Administration Agreement and may be deposited under such general conditions as may be prescribed by law, and the AART Owner Trustee shall not be liable for any interest thereon. 

(f) The AART Owner Trustee shall not take any action that (i) is inconsistent with the purposes of the Trust set forth in
Section 2.3 or (ii) would, to the actual knowledge of a Responsible Officer of the AART Owner Trustee, result in the Trust’s becoming taxable as a corporation for federal income tax purposes. The Certificateholders shall not
direct the AART Owner Trustee to take any action or themselves take any action that would violate the provisions of this Section 6.1. 

Section 6.2 Rights of AART Owner Trustee. The AART Owner Trustee is authorized and directed to execute and deliver the AART
Transaction Documents and each certificate or other document attached as an exhibit to or contemplated by the AART Transaction Documents to which the Trust is to be a party, in such form as the Depositor shall approve as evidenced conclusively by
the AART Owner Trustee’s execution thereof. In addition to the foregoing, the AART Owner Trustee is authorized, but shall not be obligated, to take all actions required of the Trust pursuant to the AART Transaction Documents. The AART Owner
Trustee is further authorized from time to time to take such action as the Administrator recommends and directs in writing with respect to the AART Transaction Documents. 

Section 6.3 Acceptance of Trusts and Duties. Except as otherwise provided in this Article VI, in accepting the trusts
hereby created, Deutsche Bank Trust Company Delaware acts solely as AART Owner Trustee hereunder and not in its individual capacity and all Persons having any claim against the AART Owner Trustee by reason of the transactions contemplated by this
Agreement or any other AART Transaction Document shall look only to the AART Owner Trust Estate for payment or satisfaction thereof. The AART Owner Trustee accepts the trusts hereby created and agrees to perform its duties hereunder with respect to
such trusts but 

  
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only upon the terms of this Agreement. The AART Owner Trustee also agrees to disburse all monies actually received by it constituting part of the AART Owner Trust Estate upon the terms of the
AART Transaction Documents. The AART Owner Trustee shall not be liable or accountable hereunder or under any other AART Transaction Document under any circumstances, except for its own negligent action, its own negligent failure to act or its own
willful misconduct or in the case of the inaccuracy of any representation or warranty contained in Section 6.6 and expressly made by the AART Owner Trustee. In particular, but not by way of limitation (and subject to the exceptions set
forth in the preceding sentence): 
 (a) the AART Owner Trustee shall at no time have any responsibility or liability for, or with respect
to, the legality, validity and enforceability of any Secured Note, or the perfection and priority of any security interest created by any Secured Note in any Lease Asset or the maintenance of any such perfection and priority, or for, or with respect
to, the sufficiency of the AART Owner Trust Estate or its ability to generate the payments to be distributed to Certificateholders under this Agreement or to Noteholders under the AART Indenture, including: the existence, condition and ownership of
any Lease Asset securing a Secured Note; the existence and enforceability of any insurance thereon; the existence and contents of any Secured Note on any computer or other record thereof; the validity of the assignment of any Secured Note to the
Trust or of any intervening assignment; the completeness of any Secured Note; the performance or enforcement of any Secured Note; the compliance by the Depositor or the Administrator with any warranty or representation made under any AART
Transaction Document or in any related document or the accuracy of any such warranty or representation or any action of the AART Indenture Trustee or the Administrator or any sub-administrator taken in the name of the AART Owner Trustee; 

(b) the AART Owner Trustee shall not be liable with respect to any action taken or omitted to be taken by it in accordance with the
instructions of the Administrator or any Certificateholder; 
 (c) no provision of this Agreement or any other AART Transaction Document
shall require the AART Owner Trustee to expend or risk funds or otherwise incur any financial liability in the performance of any of its rights or powers hereunder or under any other AART Transaction Document, if the AART 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 AART Owner Trustee be liable for indebtedness evidenced by or arising under any of the AART Transaction
Documents, including the principal of and interest on the Notes; 
 (e) the AART Owner Trustee shall not be responsible for or in respect of
and makes no representation as to the validity or sufficiency of any provision of this Agreement other than as explicitly set forth herein or for the due execution hereof by the Depositor or for the form, character, genuineness, sufficiency, value
or validity of any of the AART Owner Trust Estate or for, or in respect of, the validity or sufficiency of the AART Transaction Documents, the Notes, the Certificates (other than the certificate of authentication on the Certificates) or of any
Secured Notes or any related documents, and the AART Owner Trustee shall in no event assume or incur any liability, duty or obligation to any Noteholder or to any Certificateholder, other than as expressly provided for herein and in the other AART
Transaction Documents; 

  
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 (f) the AART Owner Trustee shall not be liable for the default or misconduct of the AART
Indenture Trustee, the Depositor or the Administrator under any of the AART Transaction Documents or otherwise and the AART Owner Trustee shall have no obligation or liability to perform the obligations of the Trust under this Agreement or the other
AART Transaction Documents that are required to be performed by the AART Indenture Trustee under the AART Indenture or the Administrator under the Pooling Agreement, the Administration Agreement or Trust Sale Agreement; 

(g) the AART 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 this Agreement or any other AART Transaction Document, at the request, order or direction of any of the Certificateholders, unless such
Certificateholders have offered to the AART Owner Trustee security or indemnity satisfactory to it against the costs, expenses and liabilities that may be incurred by the AART Owner Trustee therein or thereby; the right of the AART Owner Trustee to
perform any discretionary act enumerated in this Agreement or in any other AART Transaction Document shall not be construed as a duty, and the AART Owner Trustee shall not be answerable for other than its negligence or willful misconduct in the
performance of any such act; and 
 (h) notwithstanding anything to the contrary contained herein or in any other AART Transaction Document,
and notwithstanding any Person’s right to instruct the AART Owner Trustee, neither the AART Owner Trustee nor any agent, employee, director or officer of the AART Owner Trustee shall have any obligation to execute, deliver or certify on behalf
of the Trust or any other Person any filings, certificates, affidavits or other instruments required pursuant to the Sarbanes-Oxley Act of 2002 or the rules and regulations promulgated pursuant thereto, and the refusal to comply with any such
instructions shall not constitute a default or breach under any AART Transaction Document. In the event that the AART Owner Trustee, on behalf of the Trust, does not execute, deliver or certify any filings, certificates, affidavits or other
instruments required under the Sarbanes-Oxley Act of 2002, an Authorized Officer of the Administrator shall, on behalf of the Trust, execute, deliver or make such certification. 

Section 6.4 Action upon Instruction by Certificateholders. 

(a) Subject to Section 4.4, the Certificateholders may by written instruction direct the AART Owner Trustee in the management of
the Trust. Such direction may be exercised at any time by written instruction of the Certificateholders pursuant to Section 4.5. 

(b) Notwithstanding the foregoing, the AART Owner Trustee shall not be required to take any action hereunder or under any other AART
Transaction Document if the AART 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 AART Owner Trustee or is contrary to the terms hereof or of
any other AART Transaction Document or is otherwise contrary to law. 

  
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 (c) Whenever the AART Owner Trustee is unable to decide between alternative courses of action
permitted or required by the terms of this Agreement or any other AART Transaction Document, or is unsure as to the application, intent, interpretation or meaning of any provision of this Agreement or any other AART Transaction Document, the AART
Owner Trustee shall promptly give notice (in such form as shall be appropriate under the circumstances) to the Certificateholders requesting instruction as to the course of action to be adopted, and, to the extent the AART Owner Trustee acts in good
faith in accordance with any such instruction received, the AART Owner Trustee shall not be liable on account of such action to any Person. If the AART Owner Trustee shall not have received appropriate instructions within ten (10) 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 which is consistent, in its view,
with this Agreement or any other AART Transaction Document, and as it shall deem to be in the best interests of the Certificateholders, and the AART Owner Trustee shall have no liability to any Person for any such action or inaction. 

Section 6.5 Furnishing of Documents. The AART Owner Trustee shall furnish to the Certificateholders, promptly upon receipt of a
written request therefor, duplicates or copies of all reports, notices, requests, demands, certificates, financial statements and any other instruments furnished to the AART Owner Trustee under the AART Transaction Documents. 

Section 6.6 Representations and Warranties of AART Owner Trustee. The AART Owner Trustee hereby represents and warrants to the
Depositor, for the benefit of the Certificateholders, that: 
 (a) It is a banking corporation duly organized, validly existing and in good
standing under the laws of the State of its incorporation. It has satisfied the eligibility requirements set forth in Section 6.13. 

(b) It has full power, authority and legal right to execute, deliver and perform this Agreement, and has taken all necessary action to
authorize the execution, delivery and performance by it of this Agreement. 
 (c) The execution, delivery and performance by it of this
Agreement (i) shall not violate any provision of any law or regulation governing the banking and trust powers of the AART Owner Trustee or any order, writ, judgment or decree of any court, arbitrator or governmental authority applicable to the
AART Owner Trustee or any of its assets, (ii) shall not violate any provision of the corporate charter or by-laws of the AART Owner Trustee or (iii) shall not violate any provision of, or constitute, with or without notice or lapse of
time, a default under, or result in the creation or imposition of any Lien on any properties included in the Trust pursuant to the provisions of any mortgage, indenture, contract, agreement or other undertaking to which it is a party, which
violation, default or Lien could reasonably be expected to have a materially adverse effect on the AART Owner Trustee’s performance or ability to perform its duties as AART Owner Trustee under this Agreement or on the transactions contemplated
in this Agreement. 
 (d) This Agreement has been duly executed and delivered by the AART Owner Trustee and constitutes the legal, valid and
binding agreement of the AART Owner Trustee, enforceable in accordance with its terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, or other similar laws affecting the enforcement of creditors’ rights in
general and by general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law. 

  
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 Section 6.7 Reliance; Advice of Counsel. 

(a) The AART 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 and need not investigate any fact or matter in any such document. The AART 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 the determination of which is not specifically prescribed herein, the AART Owner Trustee may for all purposes hereof rely on a certificate, signed by the president or any vice president or by the treasurer or other
authorized officers of the relevant party, as to such fact or matter, and such certificate shall constitute full protection to the AART 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 or the
other AART Transaction Documents, the AART Owner Trustee may act directly or through its agents, attorneys, custodians or nominees (including the granting of a power of attorney to officers of Deutsche Bank Trust Company Americas to execute and
deliver any AART Transaction Documents, Certificate, Note or other documents related thereto on behalf of the AART Owner Trustee) pursuant to agreements entered into with any of them, and the AART Owner Trustee shall not be liable for the conduct or
misconduct of such agents, attorneys, custodians or nominees if such agents, attorneys, custodians or nominees shall have been selected by the AART Owner Trustee with reasonable care; and may consult with counsel, accountants and other skilled
professionals to be selected with reasonable care and employed by it. The AART Owner Trustee shall not be liable for anything done, suffered or omitted in good faith by it in accordance with the opinion or advice of any such counsel, accountants or
other such Persons and not contrary to this Agreement or any other AART Transaction Document. 
 Section 6.8 AART Owner Trustee May
Own Certificates and Notes. Deutsche Bank Trust Company Delaware or any successor AART Owner Trustee in its individual or any other capacity may become the owner or pledgee of Certificates or Notes and may deal with the Depositor, the AART
Indenture Trustee and the Administrator in transactions in the same manner as it would have if it were not the AART Owner Trustee. 

Section 6.9 Compensation and Indemnity. The AART Owner Trustee shall receive as compensation for its services hereunder such fees
as have been separately agreed upon before the date hereof between the Administrator and the AART Owner Trustee, and the AART Owner Trustee, any paying agent, registrar, authenticating agent or co-trustee shall be entitled to be

  
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reimbursed by the Administrator for its other reasonable expenses hereunder, including the reasonable compensation, expenses and disbursements of such agents, custodians, nominees,
representatives, experts and external counsel as the AART Owner Trustee may employ in connection with the exercise and performance of its rights and its duties hereunder. The Administrator shall indemnify the AART Owner Trustee, any paying agent,
registrar, authenticating agent or co-trustee and its successors, assigns, agents and servants in accordance with the provisions of Section 6.01 of the Administration Agreement. The indemnities contained in this Section 6.9 shall
survive the resignation or removal of the AART Owner Trustee or the termination of this Agreement. Any amounts paid to the AART Owner Trustee pursuant to this Article VI shall be deemed not to be a part of the AART Owner Trust Estate
immediately after such payment. 
 Section 6.10 Replacement of AART Owner Trustee. 

(a) The AART Owner Trustee may give notice of its intent to resign and be discharged from the trusts hereby created by giving notice thereof
to the Administrator provided, however, that no such resignation shall become effective, and the AART Owner Trustee shall not resign, prior to the time set forth in Section 6.10(c). If no successor AART Owner Trustee shall
have been appointed pursuant to Section 6.10(b) and have accepted such appointment within thirty (30) days after the giving of such notice, the AART Owner Trustee giving such notice may petition any court of competent jurisdiction
for the appointment of a successor AART Owner Trustee. The Administrator shall remove the AART Owner Trustee if: 
 (i) the AART Owner
Trustee shall cease to be eligible in accordance with the provisions of Section 6.13 and shall fail to resign after written request therefor by the Administrator; 

(ii) the AART Owner Trustee shall be adjudged bankrupt or insolvent; 

(iii) a receiver or other public officer shall be appointed or take charge or control of the AART Owner Trustee or of its property or affairs
for the purpose of rehabilitation, conservation or liquidation; or 
 (iv) the AART Owner Trustee shall otherwise be incapable of acting.

 (b) If the AART Owner Trustee gives notice of its intent to resign or is removed or if a vacancy exists in the office of AART Owner
Trustee for any reason the Administrator shall promptly appoint a successor AART Owner Trustee by written instrument, in duplicate (one copy of which instrument shall be delivered to the outgoing AART Owner Trustee so removed and one copy to the
successor AART Owner Trustee) and shall pay all fees owed to the outgoing AART Owner Trustee. 
 (c) Any resignation or removal of the AART
Owner Trustee and appointment of a successor AART Owner Trustee pursuant to any of the provisions of this Section 6.10 shall not become effective and no such resignation shall be deemed to have occurred until a written acceptance of
appointment is delivered by the successor AART Owner Trustee to the outgoing AART Owner Trustee and the Administrator and all fees and expenses due to the outgoing AART Owner Trustee are paid. If any costs arise in connection with the resignation of
the 

  
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AART Owner Trustee and the appointment of a successor AART Owner Trustee, such costs shall reduce the amount otherwise distributable to the AART Certificateholder in accordance with
Section 5.2. The AART Owner Trustee is hereby authorized and directed to retain from amounts otherwise distributable to the AART Certificateholders sufficient funds for the payment of such costs. Any successor AART Owner Trustee
appointed pursuant to this Section 6.10 shall be eligible to act in such capacity in accordance with Section 6.13 and, following compliance with the provisions of this Section 6.10(c), 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 AART Owner Trustee. The Administrator shall provide notice of such resignation or removal of the AART Owner
Trustee to each of the Rating Agencies. 
 (d) The predecessor AART Owner Trustee shall upon payment of its fees and expenses deliver to the
successor AART Owner Trustee all documents and statements and monies held by it under this Agreement. The Administrator and the predecessor AART 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 AART Owner Trustee all such rights, powers, duties and obligations. 

(e) Upon acceptance of appointment by a successor AART Owner Trustee pursuant to this Section 6.10, the Administrator shall mail
notice of the successor of such AART Owner Trustee to all Certificateholders, the AART Indenture Trustee and the Noteholders. 

Section 6.11 Merger or Consolidation of AART Owner Trustee. Any Person into which the AART Owner Trustee may be merged or
converted or with which it may be consolidated, or any Person resulting from any merger, conversion or consolidation to which the AART Owner Trustee shall be a party, or any Person succeeding to all or substantially all of the corporate trust
business of the AART Owner Trustee, shall be the successor of the AART Owner Trustee hereunder, provided such Person shall be eligible pursuant to Section 6.13, and without the execution or filing of any instrument or any further act on
the part of any of the parties hereto. 
 Section 6.12 Appointment of Co-Trustee or Separate Trustee. 

(a) Notwithstanding any other provisions of this Agreement, at any time, for the purpose of meeting any legal requirement of any jurisdiction
in which any part of the AART Owner Trust Estate or any Secured Note may at the time be located, the Administrator and the AART Owner Trustee acting jointly shall have the power and shall, at the expense of the Administrator, execute and deliver all
instruments to appoint one or more Persons approved by the AART Owner Trustee to act as co-trustee, jointly with the AART Owner Trustee, or as separate trustee or trustees, of all or any part of the AART Owner Trust Estate, and to vest in such
Person (in the name of the Trust and not in such Person’s name for the Trust, except to the extent otherwise required by, and in accordance with, Section 2.8), in such capacity, such title to the Trust, or any part thereof, and,
subject to the other provisions of this Section 6.12, such powers, duties, obligations, rights and trusts as the Administrator and the AART Owner Trustee may consider necessary or desirable. If the Administrator shall not have joined in
such appointment within fifteen (15) days after the receipt by it of a request so to do, the AART Owner Trustee alone shall have the power to make such appointment. No co-trustee or separate 

  
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trustee under this Agreement shall be required to meet the terms of eligibility as a successor trustee pursuant to Section 6.13 and no notice of the appointment of any co-trustee or
separate trustee shall be required pursuant to Section 6.10. 
 (b) Each separate trustee and co-trustee shall, to the extent
permitted by law, be appointed and act subject to the following provisions and conditions: 
 (i) all rights, powers, duties and
obligations conferred or imposed upon the AART Owner Trustee shall be conferred upon and exercised or performed by the AART 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 AART Owner Trustee joining in such act), except to the extent that under any law of any jurisdiction in which any particular act or acts are to be performed, the AART 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 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 AART Owner Trustee; 
 (ii) no trustee under this Agreement shall be
personally liable by reason of any act or omission of any other trustee under this Agreement; and 
 (iii) the Administrator and the AART
Owner Trustee acting jointly may at any time accept the resignation of or remove any separate trustee or co-trustee. 
 (c) Any notice,
request or other writing given to the AART 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 VI. 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 AART 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 AART Owner Trustee. Each such instrument shall be filed with the AART Owner Trustee and a copy thereof given to the Administrator. 

(d) Any separate trustee or co-trustee may at any time appoint the AART Owner Trustee as its agent or attorney-in-fact with full power and
authority, to the extent not prohibited by 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 AART Owner Trustee, to the extent permitted by law, without the appointment of a new or successor trustee. 

Section 6.13 Eligibility Requirements for AART Owner Trustee. The AART Owner Trustee shall at all times satisfy the requirement of
Section 26(a)(1) of the Investment Company Act. The AART Owner Trustee shall at all times: (a) be a corporation satisfying the provisions of Section 3807(a) of the Statutory Trust Act; (b) be authorized to exercise corporate
trust 

  
 22 

 
powers; (c) have a combined capital and surplus of at least $50,000,000 and be subject to supervision or examination by federal or State authorities; and (d) have (or have a parent
which has) a long-term unsecured debt rating of at least “BBB” by S&P, or such other rating as is acceptable to, S&P and “BBB-” by Fitch, or such other rating as is acceptable to Fitch. If such corporation shall publish
reports of condition at least annually, pursuant to law or to the requirements of the aforesaid supervising or examining authority, then for the purpose of this Section 6.13, 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 AART Owner Trustee shall cease to be eligible in accordance with the provisions of this Section 6.13, the
AART Owner Trustee shall resign immediately in the manner and with the effect specified in Section 6.10. 
 Section 6.14
Compliance with the FDIC Rule. The AART Owner Trustee agrees to use reasonable affects to comply with any request of the Depositor or the Administrator to facilitate compliance with Article XII of the AART Indenture by the Ally Parties. 

ARTICLE VII 
 TERMINATION
OF TRUST AGREEMENT 
 Section 7.1 Termination of Trust Agreement. 

(a) The Trust shall dissolve in accordance with Section 3808 of the Statutory Trust Act immediately prior to the final distribution by
the AART Owner Trustee of all monies or other property or proceeds of the AART Owner Trust Estate in accordance with the terms of the AART Indenture, the Administration Agreement (including the exercise by the Administrator of its option to purchase
the Secured Notes pursuant to Section 8.01(a) of the Administration Agreement), and Article V. The bankruptcy, liquidation, dissolution, death or incapacity of any Certificateholder shall not (x) operate to terminate this Agreement
or the Trust, (y) entitle such Certificateholder’s legal representatives or heirs to claim an accounting or to take any action or proceeding in any court for a partition or winding up of all or any part of the Trust or the AART Owner Trust
Estate, or (z) otherwise affect the rights, obligations and liabilities of the parties hereto. 
 (b) Neither the Depositor nor any
Certificateholder shall be entitled to revoke or terminate the Trust or this Agreement. 
 (c) Subject to Section 5.2(a), notice
of any dissolution of the Trust, specifying the Distribution Date upon which the Certificateholders shall surrender their Certificates to the Paying Agent for payment of the final distribution and cancellation, shall be given by the AART Owner
Trustee by letter to Certificateholders mailed within five (5) Business Days of receipt of notice of such termination from the Administrator given pursuant to Section 8.01(c) of the Administration Agreement, 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 Paying Agent 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, payments being made only upon presentation and surrender of the Certificates at the office of the Paying Agent therein specified. The AART Owner
Trustee shall give such notice to the 

  
 23 

 
Certificate Registrar (if other than the AART Owner Trustee) and the Paying Agent at the time such notice is given to Certificateholders. Upon presentation and surrender of the Certificates, the
Paying Agent shall cause to be distributed to Certificateholders amounts distributable on such Distribution Date pursuant to Section 5.2. 

(d) If all of the Certificateholders shall not surrender their Certificates for cancellation within six (6) months after the date
specified in the written notice referred to in Section 7.1(c), the AART 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 (1) year after the second notice all the Certificates shall not have been surrendered for cancellation, the AART 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 laws
with respect to escheat of funds, any funds remaining in the Trust after exhaustion of such remedies in the preceding sentence shall be deemed property of the Depositor and distributed by the AART Owner Trustee to the Depositor, and the AART Owner
Trustee shall have no further liability to the Certificateholders with respect thereto. 
 (e) Upon the winding up and termination of the
Trust in accordance with Section 3808 of the Statutory Trust Act and this Section 7.1, at the written direction and expense of the Certificateholders, the AART Owner Trustee shall cause the Certificate of Trust to be canceled by
filing a certificate of cancellation with the Secretary of State in accordance with the provisions of Section 3810 of the Statutory Trust Act. Thereupon, this Agreement (other than Sections 6.9, 9.8 and 9.9) and the Trust
shall terminate. 
 ARTICLE VIII 

AMENDMENTS 

Section 8.1 Amendments Without Consent of Certificateholders or Noteholders. This Agreement may be amended by the Depositor and
the AART Owner Trustee without the consent of any of the Noteholders, or any other Person who may be a Certificateholder (but with prior notice to each of the Rating Agencies from the Depositor), to (i) cure any ambiguity, (ii) correct or
supplement any provision in this Agreement that may be defective or inconsistent with any other provision in this Agreement or any other AART Transaction Document, (iii) add or supplement any credit enhancement for the benefit of the
Noteholders or the Certificateholders (provided that if any such addition shall affect any class of Noteholders or Certificateholders differently than any other class of Noteholders or Certificateholders, then such addition shall not, as evidenced
by Opinion of Counsel, adversely affect in any material respect the interests of any class of Noteholders or Certificateholders), (iv) add to the covenants, restrictions or obligations of the Depositor or the AART Owner Trustee,
(v) evidence and provide for the acceptance of the appointment of a successor trustee with respect to the AART Owner Trust Estate and add to or change any provisions as shall be necessary to facilitate the administration of the trusts hereunder
by more than one trustee pursuant to Article VI, and (vi) add, change or eliminate any other provision of this Agreement in any manner that shall not, as evidenced by an Opinion of Counsel, adversely affect in any material respect
the interests of the Noteholders or the Unaffiliated Certificateholders. 

  
 24 

 Section 8.2 Amendments With Consent of Certificateholders and Noteholders. This
Agreement may also be amended from time to time by the Depositor and the AART Owner Trustee with the consent of Noteholders whose Notes evidence not less than a majority of the Outstanding Amount of the Controlling Class as of the close of the
preceding Distribution Date and, if any Person other than the Depositor or an Affiliate of the Depositor holds any Certificates, the consent of Certificateholders whose Certificates evidence not less than a majority of the Voting Interests as of the
close of the preceding Distribution Date (which consent, whether given pursuant to this Section 8.2 or pursuant to any other provision of this Agreement, shall be conclusive and binding on such Person and on all future Holders of such
Notes or Certificates and of any Notes or Certificates issued upon the transfer thereof or in exchange thereof or in lieu thereof whether or not notation of such consent is made upon the Notes or Certificates) for the purpose of adding any
provisions to or changing in any manner or eliminating any of the provisions of this Agreement, or of modifying in any manner the rights of the Noteholders or the Certificateholders; provided, however, that no such amendment shall
(a) without the consent of the holder of the affected Note, increase or reduce the interest rate or principal amount of any Note or change any Distribution Date or the Final Scheduled Distribution Date of any Note or distributions on the
Certificates (without the consent of the holders hereof), (b) adversely affect the rating of any Securities by any of the Rating Agencies without the consent of the holders of two-thirds of the Outstanding Amount of an affected class of Notes
or two-thirds of the Voting Interests of the Certificates as appropriate, each as of the close of the preceding Distribution Date or (c) reduce the aforesaid percentage required to consent to any such amendment, without the consent of the
holders of all Notes and all of the Voting Interests with respect to Certificates then outstanding. The Depositor shall furnish notice to each of the Rating Agencies prior to obtaining consent to any proposed amendment under this
Section 8.2. 
 Section 8.3 Form of Amendments. 

(a) Promptly after the execution of any amendment, supplement or consent pursuant to Section 8.1 or 8.2, the AART Owner
Trustee shall furnish written notification of the substance of such amendment or consent to each Unaffiliated Certificateholder and the AART Indenture Trustee. 

(b) It shall not be necessary for the consent of Certificateholders, the Noteholders or the AART Owner Trustee pursuant to
Section 8.2 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 and Unaffiliated Certificateholders provided for in this Agreement or in any other AART Transaction Document) and of evidencing the authorization of the execution thereof by Certificateholders and Unaffiliated Certificateholders
shall be subject to such reasonable requirements as the AART Owner Trustee may prescribe. 
 (c) Promptly after the execution of any
amendment to the Certificate of Trust, the AART Owner Trustee shall cause the filing of such amendment with the Secretary of State. 
 (d)
Prior to the execution of any amendment to this Agreement or the Certificate of Trust, the AART Owner Trustee shall be entitled to receive and conclusively rely 

  
 25 

 
upon an Opinion of Counsel stating that the execution of such amendment by it is authorized or permitted by this Agreement. The AART Owner Trustee may, but shall not be obligated to, enter into
any such amendment which affects the AART Owner Trustee’s own rights, duties or immunities under this Agreement or otherwise. 

ARTICLE IX 

MISCELLANEOUS 

Section 9.1 No Legal Title to AART Owner Trust Estate. The Certificateholders shall not have legal title to any part of the AART
Owner Trust Estate. The Certificateholders shall be entitled to receive distributions with respect to their undivided ownership interest therein only in accordance with Articles V and VII. No transfer, by operation of law or otherwise,
of any right, title, and interest of the Certificateholders to and in their ownership interest in the AART Owner Trust Estate 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 AART Owner Trust Estate. 
 Section 9.2 Limitations on Rights of Others. Except
for Section 9.12, the provisions of this Agreement are solely for the benefit of the AART Owner Trustee, the Depositor, the Certificateholders, the Administrator and, to the extent expressly provided herein, the AART Indenture Trustee
and the Noteholders, and nothing in this Agreement, whether express or implied, shall be construed to give to any other Person any legal or equitable right, remedy or claim in the AART Owner Trust Estate or under or in respect of this Agreement or
any covenants, conditions or provisions contained herein. 
 Section 9.3 Derivative Actions. Any provision contained herein to
the contrary notwithstanding, the right of any Certificateholder to bring a derivative action in the right of the Trust is hereby made expressly subject to the following limitations and requirements: 

(a) such Certificateholder must meet all requirements set forth in the Statutory Trust Act; and 

(b) no Certificateholder may bring a derivative action in the right of the Trust without the prior written consent of Certificateholders
owning, in the aggregate, beneficial interests in Certificates representing at least 50% of the Voting Interests. 
 Section 9.4
Notices. All demands, notices and communications upon or to the Depositor, the Administrator, the AART Indenture Trustee, the AART Owner Trustee or the Rating Agencies under this Agreement shall be delivered as specified in Part III of
Appendix A to the Administration Agreement. 
 Section 9.5 Severability. If any one or more of the covenants, agreements,
provisions or terms of this Agreement shall be for any reason whatsoever held invalid, then such covenants, agreements, provisions or terms shall be deemed severable from the remaining covenants, agreements, provisions or terms of this Agreement and
shall in no way affect the validity or enforceability of the other provisions of this Agreement or of the Certificates or the rights of the Holders thereof. 

  
 26 

 Section 9.6 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 one and the same instrument. 

Section 9.7 Successors and Assigns. 

(a) All covenants and agreements contained herein shall be binding upon, and inure to the benefit of, the Depositor, the AART Owner Trustee
and each Certificateholder 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 the successors and assigns of
such Certificateholder. 
 (b) Notwithstanding anything to the contrary contained in this Agreement, this Trust Agreement may be assigned by
the Depositor without the consent of any other Person, but with notice to the Rating Agencies, to a corporation, limited liability company or other entity that is a successor (by merger, consolidation or purchase of assets) to the Depositor, or 25%
or more of the voting interests of which is owned, directly or indirectly, by Ally Financial or General Motors, provided that such entity executes an agreement of assumption as provided as provided in Section 3.03 of the Trust Sale Agreement.

 Section 9.8 No Petition. The AART Owner Trustee by entering into this Trust Agreement and each Certificateholder or
Certificate Owner by accepting a Certificate (or interest therein) issued hereunder, hereby covenant and agree that they shall not (nor shall they join with or solicit another person to), prior to the day that is one year and one day after the
termination of the Trust and of each other trust heretofore formed by the Depositor, acquiesce, petition or otherwise invoke or cause the Depositor or the Trust to invoke in any court or government authority for the purpose of commencing or
sustaining a case against the Depositor or the Trust under any federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Depositor or the
Trust or any substantial part of its property, or ordering the winding up or liquidation of the affairs of the Depositor or the Trust under a federal or State bankruptcy or insolvency proceeding. This Section 9.8 shall survive the
termination of this Agreement. 
 Section 9.9 No Recourse. Each Certificateholder and each Certificate Owner by accepting a
Certificate (or any interest therein) acknowledges that such Person’s Certificate (or interest therein) represents beneficial interests in the Trust only and does not represent interests in or obligations of the Depositor, the Administrator,
the Paying Agent, the AART Owner Trustee, the AART Indenture Trustee or any Affiliate thereof and no recourse, either directly or indirectly, may be had against such parties or their assets, except as may be expressly set forth or contemplated in
this Agreement, the Certificates or the other AART Transaction Documents. Except as expressly provided in the AART Transaction Documents, none of the Depositor, the Administrator or the AART Owner Trustee in their respective individual capacities,
or any of their respective partners, beneficiaries, agents, officers, directors, employees or successors or assigns, shall be personally liable for, nor shall recourse be had to any of them for the distribution of any amount with respect to the
Certificates or the Trust’s performance of, or omission to perform, any obligations or indemnifications contained in the Certificates, this Agreement or the other AART Transaction Documents, it being expressly understood that such 

  
 27 

 
Certificateholder obligations have been made solely by the Trust. Each Certificateholder by the acceptance of a Certificate (or beneficial interest therein) agrees that except as expressly
provided in the AART Transaction Documents, in the event of nonpayment of any amounts with respect to the Certificates, it shall have no claim against any of the foregoing Persons for any deficiency, loss or claim therefrom. In the event that any of
the foregoing covenants of each Certificateholder and each Certificate Owner is prohibited by, or declared illegal or otherwise unenforceable against any such Certificateholder and Certificate Owner under applicable law by any court or other
authority of competent jurisdiction, and, as a result, a Certificateholder is deemed to have an interest in any assets of the Depositor or any Affiliate of the Depositor other than the Trust (“other assets”), each Certificateholder and
Certificate Owner agrees that (i) its claim against any such other assets shall be, and hereby is, subject and subordinate in all respects to the rights of other Persons to whom rights in the other assets have been expressly granted
(“entitled Persons”), including to the payment in full of all amounts owing to such entitled Persons, and (ii) the covenant set forth in the preceding clause (i) constitutes a “subordination agreement” within the
meaning of, and subject to, Section 510(a) of the Bankruptcy Code. This Section 9.9 shall survive the termination of this Agreement. 

Section 9.10 Headings. The headings of the various Articles and Sections herein are for convenience of reference only and shall
not define or limit any of the terms or provisions hereof. 
 Section 9.11 Governing Law. THIS AGREEMENT SHALL BE GOVERNED BY
AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAWS THEREOF OR OF ANY OTHER JURISDICTION, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE
DETERMINED IN ACCORDANCE WITH SUCH LAWS. 
 Section 9.12 Indemnification by and Reimbursement of the Administrator. The AART
Owner Trustee acknowledges and agrees to reimburse (i) the Administrator and its directors, officers, employees and agents in accordance with Section 6.03(b) of the Administration Agreement and (ii) the Depositor and its directors,
officers, employees and agents in accordance with Section 3.04 of the Trust Sale Agreement. The AART Owner Trustee further acknowledges and accepts the conditions and limitations with respect to the Administrator’s obligation to indemnify,
defend and hold the AART Owner Trustee harmless as set forth in Section 6.01(a)(iii) of the Administration Agreement. 

Section 9.13 Effect of Amendment and Restatement. It is the intent of the parties hereto that this Trust Agreement shall as of the
Closing Date, replace in its entirety the Original Trust Agreement; provided, however, that with respect to the period of time from October 9, 2014 through October 22, 2014, the rights and obligations of the parties shall be
governed by the Original Trust Agreement; and provided further, that the amendment and restatement of the Original Trust Agreement shall not affect any of the grants, conveyances or transfers contemplated by the Original Trust
Agreement to have occurred prior to the date hereof. 

  
 28 

 Section 9.14 Information to be Provided by the AART Owner Trustee. 

(a) The AART Owner Trustee agrees to cooperate in good faith with any reasonable request by ACOLT or the Depositor for information regarding
the AART Owner Trustee which is required in order to enable ACOLT or the Depositor to comply with the provisions of Items 1104(e), 1121(c), 1117 and 1119 of Regulation AB and Rule 15Ga-1 under the Exchange Act as it relates to the AART Owner Trustee
or to the AART Owner Trustee’s obligations under this Agreement; provided that with respect to Rule 15Ga-1, and Items 1121(c) and 1104(e), the AART Owner Trustee shall not be deemed a “securitizer” under Regulation AB or under
the Exchange Act. 
 (b) Except to the extent disclosed by the AART Owner Trustee in subsection (c) or (d) below, the AART Owner
Trustee shall be deemed to have represented to ACOLT and the Depositor on the first day of each Monthly Period with respect to the prior Monthly Period that to the best of its knowledge there were no legal or governmental proceedings pending (or
known to be contemplated) against Deutsche Bank Trust Company Delaware or any property of Deutsche Bank Trust Company Delaware that would be material to any Noteholder or, to the extent that the Certificates are registered under the Securities Act
for public sale, any holder of such Certificates. 
 (c) The AART Owner Trustee shall, as promptly as practicable following notice to or
discovery by the AART Owner Trustee of any changes to any information regarding the AART Owner Trustee as is required for the purpose of compliance with Item 1117 of Regulation AB, provide to the Depositor, in writing, such updated information.

 (d) The AART Owner Trustee shall deliver to ACOLT and the Depositor on or before March 15 (or, if such date is not a Business Day,
the next succeeding Business Day) of each calendar year, beginning with March 15, 2015, a report of a representative of the AART Owner Trustee with respect to the immediately preceding calendar year certifying, on behalf of the AART Owner
Trustee, that except to the extent otherwise disclosed in writing to ACOLT and the Depositor, to the best of his or her knowledge there were no legal or governmental proceedings pending (or known to be contemplated) against Deutsche Bank Trust
Company Delaware or any property of Deutsche Bank Trust Company Delaware that would be material to any Noteholder or, to the extent that the Certificates are registered under the Securities Act for public sale, any holder of such Certificates. 

(e) The AART Owner Trustee shall deliver to ACOLT and the Depositor on or before March 15 (or, if such date is not a Business Day, the
next succeeding Business Day) of each calendar year, beginning with March 15, 2015, a report of a representative of the AART Owner Trustee with respect to the immediately preceding calendar year providing to ACOLT and the Depositor such
information regarding the AART Owner Trustee as is required for the purpose of compliance with Item 1119 of Regulation AB. Such information shall include, at a minimum, a description of any affiliation between the AART Owner Trustee and any of
the following parties to this securitization transaction, as such parties are identified to the AART Owner Trustee by ACOLT and the Depositor in writing in advance of this securitization transaction: 

(i) the Depositor; 

  
 29 

 (ii) Ally Bank, as sponsor; 

(iii) the Trust; 
 (iv) the
Administrator; 
 (v) the AART Indenture Trustee; 

(vi) ACOLT; 
 (vii) ACOL LLC;

 (viii) the ACOLT Indenture Trustee; 

(ix) the ACOLT Owner Trustee; 

(x) the Servicer; and 
 (xi)
any other material transaction party. 
 (f) In connection with the parties listed in clauses (i) through
(xii) above, the AART Owner Trustee shall include a description of whether there is, and if so, the general character of, any business relationship, agreement, arrangement, transaction or understanding 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 this securitization transaction, that currently exists or that existed during the past two years
and that is material to an investor’s understanding of the asset backed securities issued in this securitization transaction. 
 (g)
The AART Owner Trustee shall provide the Depositor with notification, as soon as practicable and in any event within five Business Days, of all demands delivered to a Reporting Officer of the AART Owner Trustee for the repurchase or replacement of
any Receivable pursuant to Section 2.04 of the Trust Sale Agreement or Section 2.13 of the Servicing Agreement, as applicable. Subject to this Section 9.14, the AART Owner Trustee shall have no obligation to take any other
action with respect to any demand. Except as set forth in the AART Transaction Documents, in no event shall the AART Owner Trustee have (i) any responsibility or liability in connection with any filing to be made by a securitizer under the
Exchange Act or Regulation AB or (ii) any duty or obligation to undertake any investigation or inquiry related to repurchase activity or otherwise to assume any additional duties or responsibilities except as expressly set forth in this
Section 9.14. 
 [Remainder of Page Intentionally Left Blank.] 

  
 30 

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

			
	 DEUTSCHE BANK TRUST COMPANY DELAWARE,

as AART Owner Trustee

		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	  

	Title:	 	  

	
	ALLY AUTO ASSETS LLC
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Trust Agreement (AART 2014-SN2) 

 Acknowledged and Accepted: 
  

			
	DEUTSCHE BANK TRUST COMPANY AMERICAS,
	as Paying Agent
		
	By:	 	  

	Name:	 	
	Title:	 	
		
	By:	 	  

	Name:	 	
	Title:	 	

  
 Trust Agreement (AART 2014-SN2) 

 EXHIBIT A 

FORM OF AART CERTIFICATE 
  

			
	NO. R- [    ]	  	[    ]% Percentage Interest            

 SEE REVERSE FOR CERTAIN DEFINITIONS 

THIS AART CERTIFICATE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”), OR THE VARIOUS STATE
SECURITIES LAWS. NO TRANSFER OF THIS AART CERTIFICATE SHALL BE MADE UNLESS SUCH TRANSFER IS MADE IN A TRANSACTION THAT DOES NOT REQUIRE REGISTRATION UNDER THE ACT OR ANY APPLICABLE STATE SECURITIES LAWS AND IS OTHERWISE IN COMPLIANCE WITH THE
RESTRICTIONS SET FORTH IN THE TRUST AGREEMENT. 
 THIS AART CERTIFICATE (OR AN INTEREST HEREIN) MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF
(1) AN “EMPLOYEE BENEFIT PLAN,” AS DEFINED IN SECTION 3(3) OF THE UNITED STATES EMPLOYEE RETIREMENT INCOME SECURITY ACT OF 1974, AS AMENDED (“ERISA”), THAT IS SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA, (2) A
“PLAN” SUBJECT TO SECTION 4975 OF THE INTERNAL REVENUE CODE OF 1986, AS AMENDED (THE “CODE”), OR (3) ANY ENTITY WHOSE UNDERLYING ASSETS INCLUDE PLAN ASSETS BY REASON OF INVESTMENT BY AN EMPLOYEE BENEFIT PLAN OR PLAN
IN SUCH ENTITY OTHER THAN AN “INSURANCE COMPANY GENERAL ACCOUNT,” AS DEFINED IN PROHIBITED TRANSACTION CLASS EXEMPTION 95-60 (“PTCE 95-60”), WHOSE UNDERLYING ASSETS INCLUDE LESS THAN 25% PLAN ASSETS AND FOR WHICH THE
PURCHASE AND HOLDING OF AART CERTIFICATES IS ELIGIBLE AND SATISFIES ALL CONDITIONS FOR RELIEF UNDER PTCE 95-60. THIS AART CERTIFICATE (OR AN INTEREST THEREIN) ALSO MAY NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF
AN EMPLOYEE BENEFIT PLAN OR PLAN THAT IS NOT SUBJECT TO THE PROVISIONS OF TITLE I OF ERISA OR SECTION 4975 OF THE CODE (INCLUDING, WITHOUT LIMITATION, FOREIGN OR GOVERNMENTAL PLANS) IF SUCH ACQUISITION WOULD RESULT IN A NON-EXEMPT PROHIBITED
TRANSACTION UNDER, OR A VIOLATION OF, ANY APPLICABLE LAW THAT IS SUBSTANTIALLY SIMILAR TO TITLE I OF ERISA OR SECTION 4975 OF THE CODE. EACH HOLDER OF THIS AART CERTIFICATE, BY ACCEPTING THIS AART CERTIFICATE, WILL BE DEEMED TO HAVE REPRESENTED
AND WARRANTED THAT IT IS NOT SUBJECT TO THE FOREGOING LIMITATIONS AND, IF REQUESTED TO 

  
 Ex. A-1 

 
DO SO BY THE DEPOSITOR, SUCH PERSON SHALL EXECUTE AND DELIVER TO THE AART OWNER TRUSTEE AN UNDERTAKING LETTER IN FORM AND SUBSTANCE SATISFACTORY TO THE AART INDENTURE TRUSTEE AND THE DEPOSITOR.

 THIS CERTIFICATE MAY (A) ONLY BE ACQUIRED BY OR FOR THE ACCOUNT OF A PERSON WHO IS A UNITED STATES PERSON (WITHIN THE MEANING
OF SECTION 7701(A)(30) OF THE CODE) AND (B) NOT BE ACQUIRED BY OR FOR THE ACCOUNT OF A SPECIAL PASS-THROUGH ENTITY (AS DEFINED IN THE TRUST AGREEMENT). 

  
 Ex. A-2 

 ALLY AUTO RECEIVABLES TRUST 2014-SN2 

ASSET BACKED CERTIFICATE 

evidencing a fractional undivided interest in the Trust, as defined below, the property of which includes the Secured Notes sold to the Trust
by Ally Auto Assets LLC. 
 (This Certificate does not represent an interest in or obligation of Ally Auto Assets LLC or Ally Financial Inc.
or any of their respective affiliates, except to the extent described in the AART Transaction Documents.) 
 THIS CERTIFIES THAT
                    is the registered owner of a nonassessable, fully-paid, fractional undivided interest in Ally Auto Receivables Trust 2014-SN2
(the “Trust”) formed by Ally Auto Assets LLC, a Delaware limited liability company (the “Depositor”). 

The Trust was created pursuant to a trust agreement, dated as of October 9, 2014 (as amended and restated as of October 22, 2014 and
as it may be amended from time to time, the “Trust Agreement”), between the Depositor and Deutsche Bank Trust Company Delaware, as owner trustee (the “AART Owner Trustee”), a summary of certain of the pertinent
provisions of which is set forth below. To the extent not otherwise defined herein, the capitalized terms used herein have the meanings assigned to them or incorporated by reference in the Trust Agreement. 

This Certificate is one of the duly authorized Certificates designated as Asset Backed Certificates (the “Certificates”).
This Certificate is issued under and is subject to the terms, provisions and conditions of the Trust Agreement, the terms of which are incorporated herein by reference and made a part hereof, to which Trust Agreement the holder of this Certificate
by virtue of the acceptance hereof assents and by which such holder is bound. 
 Under the Trust Agreement, there shall be distributed on
the 20th day of each month or, if such 20th day is not a Business Day, the next Business Day, commencing on November 20, 2014 (each, a
“Distribution Date”), to the Person in whose name this Certificate is registered on the related Record Date (as defined below), such amount as is provided in the AART Transaction Documents. The “Record Date,” with
respect to any Distribution Date, means the last day of the preceding Monthly Period. 
 The distributions in respect of this Certificate
are payable in such coin or currency of the United States of America as at the time of payment is legal tender for payment of public and private debts. All payments made by the Trust with respect to this Certificate shall be applied in respect of
this Certificate. 

  
 Ex. A-3 

 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 and to the extent described in the Administration Agreement. 

It is the intent of the Depositor, the AART Owner Trustee and the Certificateholders that, for purposes of federal income, State and local
income and franchise taxes, and any other taxes imposed upon, measured by or based upon gross or net income, the Trust shall be treated as either (A) a division of an entity that is not disregarded as a separate entity for federal income tax
purposes, or (B) a partnership if the Certificates are owned by more than one Person (as long as (1) such Persons are not disregarded as separate entities for federal income tax purposes and (2) if such Persons are disregarded as
separate entities for federal income tax purposes, such Persons are not treated as a division of the same Person). Except as otherwise required by appropriate taxing authorities, the Depositor and the other Certificateholders by acceptance of a
Certificate agree to treat, and to take no action inconsistent with the treatment of, the Certificates for such tax purposes as interests in such a disregarded entity or partnership as described in the previous sentence. 

Each Certificateholder or Certificate Owner by its acceptance of a Certificate (or an interest therein) covenants and agrees that such
Certificateholder or Certificate Owner shall not (nor shall it join with or solicit another person to), prior to the date which is one year and one day after the termination of the Trust and of each other trust heretofore formed by the Depositor,
acquiesce, petition or otherwise invoke or cause the Depositor, the AART Owner Trustee or the Trust to invoke in any court or governmental authority for the purpose of commencing or sustaining a case against the Depositor or the Trust under any
federal or State bankruptcy, insolvency or similar law or appointing a receiver, liquidator, assignee, trustee, custodian, sequestrator or other similar official of the Depositor or the Trust or any substantial part of its property, or ordering the
winding up or liquidation of the affairs of the Depositor or the Trust under a federal or State bankruptcy or insolvency proceeding. 

Except as otherwise provided in the Trust Agreement, distributions on this Certificate shall be made as provided in the Trust Agreement by the
AART Owner Trustee 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 above, the final distribution on this Certificate shall be made after due notice by the AART Owner Trustee of the pendency of such distribution and only upon presentation and surrender of this Certificate at
the office maintained for such purpose by the AART Owner Trustee in the Borough of Manhattan, The City of New York. 
 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 set forth at this place. 

Unless the certificate of authentication hereon shall have been executed by an authorized officer of the AART Owner Trustee by manual
signature, this Certificate shall not entitle the holder hereof to any benefit under the Trust Agreement or the Administration Agreement or be valid for any purpose. 

  
 Ex. A-4 

 THIS AART CERTIFICATE SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS OF
THE STATE OF DELAWARE, WITHOUT REGARD TO THE PRINCIPLES OF CONFLICTS OF LAW THEREOF OR OF ANY OTHER JURISDICTION, AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS. 

  
 Ex. A-5 

 IN WITNESS WHEREOF, the AART Owner Trustee, on behalf of the Trust and not in its individual
capacity, has caused this Certificate to be duly executed. 
  

							
	Dated: October 22, 2014	 		 	ALLY AUTO RECEIVABLES TRUST 2014-SN2
				
		 		 	By:	 	DEUTSCHE BANK TRUST COMPANY DELAWARE,
		 		 		 	not in its individual capacity but solely as
		 		 		 	AART Owner Trustee
				
		 		 	By:	 	  

		 		 	Name:	 	
		 		 	Title:	 	

  
 Ex. A-6 

 OWNER TRUSTEE’S CERTIFICATE OF AUTHENTICATION 

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

 

									
	DEUTSCHE BANK TRUST COMPANY DELAWARE,	 		 	DEUTSCHE BANK TRUST COMPANY DELAWARE,
	 not in its individual capacity but solely as

AART Owner Trustee
	 		 	 not in its individual capacity but solely as

AART Owner Trustee

					
		 		 		 	By:	 	DEUTSCHE BANK TRUST COMPANY AMERICAS,
		 		 		 		 	as Authenticating Agent
					
	By:	 	  
	 		 	By:	 	  

	Name:	 		 		 	Name:	 	
	Title:	 		 		 	Title:	 	

  
 Ex. A-7 

 REVERSE OF CERTIFICATE 

The Certificates do not represent an obligation of, or an interest in, the Depositor, the Administrator, Ally Bank, Ally Financial Inc., the
AART Indenture Trustee, the AART Owner Trustee or any Affiliates of any of them and no recourse may be had against such parties or their assets, except as may be expressly set forth or contemplated herein or in the Trust Agreement or the other AART
Transaction Documents. In addition, this Certificate is not guaranteed by any governmental agency or instrumentality and is limited in right of payment to certain collections and recoveries with respect to the Secured Notes (and certain other
amounts), all as more specifically set forth herein and in the other AART Transaction Documents. A copy of each of the other AART Transaction Documents may be examined during normal business hours at the principal office of the Depositor, and at
such other places, if any, designated by the Depositor, by any Certificateholder upon written request. In the event of any conflict between the terms of this Certificate and the terms of the other AART Transaction Documents, the terms of the other
AART Transaction Documents shall govern. 
 The Trust Agreement permits, with certain exceptions provided therein, the amendment thereof and
the modification of the rights and obligations of the Depositor and the rights of the Certificateholders under the Trust Agreement at any time by the Depositor and the AART Owner Trustee with the consent of the Holders of the Notes evidencing not
less than a majority of the Outstanding Amount of the Controlling Class as of the close of the preceding Distribution Date and, if any Person other than the Depositor or an Affiliate of the Depositor holds any Certificates, the consent of
Certificateholders whose Certificates evidence not less than a majority of the Voting Interests as of the close of the preceding Distribution Date. Any such consent by the Holder of this Certificate shall be conclusive and binding on such Holder and
on all future Holders of this Certificate and of any Certificate issued upon the transfer hereof or in exchange herefor or in lieu hereof whether or not notation of such consent is made upon this Certificate. The Trust Agreement also permits the
amendment thereof, in certain circumstances, without the consent of the Holders of any of the Certificates or the Notes. 
 As provided in
the Trust Agreement and subject to certain limitations therein set forth, the transfer of this Certificate is registerable in the Certificate Register upon surrender of this Certificate for registration of transfer at the offices or agencies of the
Certificate Registrar maintained by the AART Owner Trustee in The City of New York, accompanied by a written instrument of transfer in form satisfactory to the AART Owner Trustee and the Certificate Registrar duly executed by the Holder hereof or
such Holder’s attorney duly authorized in writing, and thereupon one or more new Certificates evidencing the same percentage interest in the Trust will be issued to the designated transferee. The initial Certificate Registrar appointed under
the Trust Agreement is Deutsche Bank Trust Company Americas, New York, New York. 
 The Certificates are issuable only as registered
Certificates. As provided in the Trust Agreement and subject to certain limitations set forth therein, Certificates are exchangeable for new Certificates of the same aggregate percentage interested requested by the Holder surrendering the same. No
service charge shall be made for any such registration of transfer or exchange, but the AART Owner Trustee or the Certificate Registrar may require payment of a sum sufficient to cover any tax or governmental charge payable in connection therewith.

  
 Ex. A-8 

 The AART Owner Trustee, the Certificate Registrar and any agent of the AART Owner Trustee or the
Certificate Registrar may treat the Person in whose name this Certificate is registered as the owner hereof for all purposes, and none of the AART Owner Trustee, the Certificate Registrar or any such agent shall be affected by any notice to the
contrary. 
 The obligations and responsibilities created by the Trust Agreement and the Trust created thereby shall terminate in accordance
with Article VII of the Trust Agreement. 

  
 Ex. A-9 

 ASSIGNMENT 

FOR VALUE RECEIVED the undersigned hereby sells, 

assigns and transfers unto 
 PLEASE INSERT SOCIAL SECURITY 

NUMBER OR OTHER IDENTIFYING 
 NUMBER OF ASSIGNEE 

 
  

(please print or type name and address, including postal zip code, of assignee) 
  

 
 the within Certificate, and all rights thereunder,
hereby irrevocably constituting and appointing 

                          
              attorney to transfer said Certificate on the books of the Certificate Registrar, 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 upon the face of the within Certificate in every particular, without alteration, enlargement or any change
whatever. Such signature must be guaranteed by a member firm of the New York Stock Exchange or a commercial bank or trust company. 

  
 Ex. A-10 

 EXHIBIT B 

CERTIFICATE OF TRUST OF 
 ALLY AUTO
RECEIVABLES TRUST 2014-SN2 
 THIS Certificate of Trust of Ally Auto Receivables Trust 2014-SN2 (the “Trust”) is being duly
executed and filed by the undersigned, as trustee, to form a statutory trust under the Delaware Statutory Trust Act (12 Del. C. § 3801 et seq.) (the “Act”). 

1. Name. The name of the statutory trust formed hereby is Ally Auto Receivables Trust 2014-SN2. 

2. Delaware Trustee. The name and business address of the trustee of the Trust having its principal place of business in the State of
Delaware are Deutsche Bank Trust Company Delaware, 1011 Centre Road, Suite 200, Wilmington, Delaware 19805. 
 3. Effective Date.
This Certificate of Trust shall be effective upon filing. 
 IN WITNESS WHEREOF, the undersigned has executed this Certificate of Trust in
accordance with Section 3811(a)(1) of the Act. 
  

			
	DEUTSCHE BANK TRUST COMPANY DELAWARE,
	not in its individual capacity but solely as Owner
	Trustee	 	
		
	By:	 	  

	Name:	 	  

	Title:	 	  

		
	By:	 	  

	Name:	 	  

	Title:	 	  

  
 Ex. B 

 EXHIBIT C 

UNDERTAKING LETTER 
 Ally Auto
Assets LLC 
 Corporation Trust Center 
 1209 Orange Street 

Wilmington, DE 19801 
 Deutsche Bank Trust Company Delaware, 

as AART Owner Trustee of Ally Auto Receivables Trust 2014-SN2 

1011 Centre Road, Suite 200, 
 Wilmington, Delaware 19805 

Ladies and Gentlemen: 
 In connection with our
purchase of record or beneficial ownership of the R-    Asset Backed Certificate (the “Certificate”) of Ally Auto Receivables Trust 2014-SN2, the undersigned purchaser, record owner or beneficial owner hereby
acknowledges, represents and warrants that such purchaser, record owner or beneficial owner: 
 (1) is not, and has not acquired the
Certificate by or for the benefit of, (a) (i) an “employee benefit plan,” as defined in Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), that is subject to the
provisions of Title I of ERISA, (ii) a “plan” subject to Section 4975 of the Internal Revenue Code of 1986, as amended (the “Code”), or (iii) any entity whose underlying assets include plan assets by reason
of investment by an employee benefit plan or plan in such entity other than an “insurance company general account,” as defined in Prohibited Transaction Class Exemption 95-60, whose underlying assets include less than 25% plan assets and
for which the purchase and holding of Certificates is eligible and satisfies all conditions for relief under Prohibited Transaction Class Exemption 95-60, or (b) an employee benefit plan or plan that is not subject to the provisions of Title I
of ERISA or Section 4975 of the Code (including, without limitation, foreign or governmental plans) if such acquisition would result in a non-exempt prohibited transaction under, or a violation of, any applicable law that is substantially
similar to Title I of ERISA or Section 4975 of the Code; 
 (2) acknowledges that you and others will rely on our acknowledgments,
representations and warranties made in connection with our purchase of record or beneficial ownership of the Certificate and agrees to notify you promptly in writing if any of our representations or warranties herein cease to be accurate and
complete; and 
 (3) (A) is a United States Person (within the meaning of Section 7701(a)(30) of the Code) and (B) is
not acquiring the Certificate by or for the account of a Special Pass-Through Entity. For the purposes of this Section (3)(B), “Special Pass-Through Entity” means a grantor trust, S corporation, or partnership where more than 50% of
the value of a beneficial owner’s interest in such pass through entity is attributable to the pass-through entity’s interest in the Certificates. 
  

  
 Ex. C-1 

 
			
	  

	Name of Certificate Owner
		
	By:	 	  

		
	Name:	 	  

	Title:	 	  

	Date:	 	  

  
 Ex. C-2

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