Document:

EXHIBIT 10.3

	
 
    

 

EXCHANGE NOTE SALE AGREEMENT

 

between

 

FORD CREDIT AUTO LEASE TWO LLC,
 acting for its series of 
 limited liability company interests designated as
 the “20  -   Series”, as Depositor

 

and

 

FORD CREDIT AUTO LEASE TRUST 20  -  ,
 as Issuer

 

Dated as of           , 20

	
 
    

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   USAGE AND DEFINITIONS
    	
1
    
	
 
    	
 
    	
 
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II   SALE AND PURCHASE OF SOLD PROPERTY
    	
1
    
	
 
    	
 
    	
 
    
	
Section 2.1.
    	
Sale of Sold Property
    	
1
    
	
Section 2.2.
    	
Payment for Sold   Property; Delivery of 20  -   Exchange Note
    	
2
    
	
Section 2.3.
    	
Acknowledgement of   Assignment and Servicing
    	
2
    
	
Section 2.4.
    	
Savings Clause
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE III   REPRESENTATIONS AND WARRANTIES
    	
2
    
	
 
    	
 
    	
 
    
	
Section 3.1.
    	
Depositor’s   Representations and Warranties
    	
2
    
	
Section 3.2.
    	
Depositor’s   Representations and Warranties About Sold Property and   20  -   Reference Pool
    	
3
    
	
Section 3.3.
    	
Depositor’s   Reallocation of Leases and Leased Vehicles for Breach of Representations
    	
5
    
	
Section 3.4.
    	
Dispute Resolution
    	
6
    
	
Section 3.5.
    	
Issuer’s   Representations and Warranties
    	
8
    
	
 
    	
 
    	
 
    
	
ARTICLE IV   DEPOSITOR’S AGREEMENTS
    	
9
    
	
 
    	
 
    	
 
    
	
Section 4.1.
    	
Required Reserve Amount
    	
9
    
	
Section 4.2.
    	
Financing Statements
    	
9
    
	
Section 4.3.
    	
No Sale or Lien by   Depositor
    	
10
    
	
Section 4.4.
    	
Expenses
    	
10
    
	
 
    	
 
    	
 
    
	
ARTICLE V   OTHER AGREEMENTS
    	
10
    
	
 
    	
 
    
	
Section 5.1.
    	
Obligations Unaffected
    	
10
    
	
Section 5.2.
    	
No Petition
    	
10
    
	
Section 5.3.
    	
Limited Recourse
    	
11
    
	
Section 5.4.
    	
Obligations Under   20  -   Exchange Note
    	
11
    
	
Section 5.5.
    	
Limitation of Liability   of Owner Trustee
    	
11
    
	
Section 5.6.
    	
Issuer Obligation
    	
11
    
	
Section 5.7.
    	
Termination
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VI   MISCELLANEOUS
    	
11
    
	
 
    	
 
    	
 
    
	
Section 6.1.
    	
Amendments
    	
11
    
	
Section 6.2.
    	
Benefit of Agreement; Third-Party   Beneficiaries
    	
12
    
	
Section 6.3.
    	
Notices
    	
12
    
	
Section 6.4.
    	
GOVERNING LAW
    	
12
    
	
Section 6.5.
    	
Submission to   Jurisdiction
    	
12
    
	
Section 6.6.
    	
WAIVER OF JURY TRIAL
    	
13
    
	
Section 6.7.
    	
No Waiver; Remedies
    	
13
    
	
Section 6.8.
    	
Severability
    	
13
    
	
Section 6.9.
    	
Headings
    	
13
    
	
Section 6.10.
    	
Counterparts
    	
13
    

 

i

 

EXCHANGE NOTE SALE AGREEMENT, dated as of           , 20   (this “Agreement”), between FORD CREDIT AUTO LEASE TWO LLC, a Delaware limited liability company, acting for its series of limited liability company interests designated as the “20  -   Series,” as Depositor, and FORD CREDIT AUTO LEASE TRUST 20  -   , a Delaware statutory trust, as Issuer.

 

BACKGROUND

 

Ford Credit makes loans to the Titling Companies under a Credit and Security Agreement to finance their acquisition of leases and leased vehicles originated by motor vehicle dealers.  Each Titling Company allocates the leases and leased vehicles to a separate series of limited liability company interests in the Titling Company designated as the “Collateral Specified Interest” and pledges them as Collateral to secure the Revolving Facility.

 

Ford Credit requested that a portion of the Revolving Facility Balance be exchanged for a note designated as the “20  -   Exchange Note” to be issued by the Titling Companies to Ford Credit under the Exchange Note Supplement and the Credit and Security Agreement.  Ford Credit and the Titling Companies designated the 20  -   Reference Pool for the 20  -   Exchange Note and allocated the Leases and Leased Vehicles from the Revolving Facility Pool to the 20  -   Reference Pool.

 

In connection with a securitization transaction sponsored by Ford Credit in which the Issuer will issue Notes secured by the 20  -   Exchange Note, Ford Credit has sold the 20  -   Exchange Note to the Depositor, who will sell it to the Issuer.

 

The parties agree as follows:

 

ARTICLE I
  USAGE AND DEFINITIONS

 

Section 1.1.                                 Usage and Definitions.  Capitalized terms used but not defined in this Agreement are defined in Appendix 1 to the 20  -   Exchange Note Supplement, dated as of           , 20   (the “Exchange Note Supplement”), to the Second Amended and Restated Credit and Security Agreement, dated as of July 22, 2005, as amended and restated as of December 1, 2015 (the “Credit and Security Agreement”), among CAB East LLC and CAB West LLC, as Borrowers, U.S. Bank National Association, as Administrative Agent, HTD Leasing LLC, as Collateral Agent, and Ford Motor Credit Company LLC, as Lender and Servicer, or in Appendix A to the Credit and Security Agreement.  Appendix 1 and Appendix A also contain usage rules that apply to this Agreement.  Appendix 1 and Appendix A are incorporated by reference into this Agreement.

 

ARTICLE II
 SALE AND PURCHASE OF SOLD PROPERTY

 

Section 2.1.                                 Sale of Sold Property.  Effective on the Closing Date and immediately after the transaction under the Exchange Note Purchase Agreement, and immediately before the transactions under the Trust Agreement and the Indenture, the Depositor sells and assigns to the Issuer, without recourse (other than the Depositor’s obligations under this Agreement), all of the

 

 

Depositor’s right, title and interest, whether now owned or later acquired, in the Sold Property.  This sale and assignment does not, and is not intended to, include any obligation of the Depositor to the Titling Companies, the Lessees, the Dealers or any other Person relating to the 20  -   Reference Pool and the other Sold Property, and the Issuer does not assume any obligations.

 

Section 2.2.                                 Payment for Sold Property; Delivery of 20  -   Exchange Note.

 

(a)                                 Payment for Sold Property.  In consideration for the Sold Property, the Issuer will transfer to the Depositor the Notes as payment for the 20  -   Exchange Note and the other Sold Property.

 

(b)                                 Delivery of 20  -   Exchange Note.  On payment for the Sold Property, the Depositor will deliver to the Issuer the 20  -   Exchange Note, registered in the name of “Ford Motor Credit Company LLC” and duly endorsed by the Seller in blank.

 

Section 2.3.                                 Acknowledgement of Assignment and Servicing.

 

(a)                                 Further Assignment.  The Depositor acknowledges that, under the Indenture, the Issuer will assign and pledge the Sold Property and related property and rights to the Indenture Trustee for the benefit of the Secured Parties.

 

(b)                                 Servicing.  The Issuer acknowledges the engagement of Ford Credit as Servicer of the Leases and Leased Vehicles in the 20  -   Reference Pool under the Servicing Supplement and the Servicing Agreement.

 

Section 2.4.                                 Savings Clause.  The Depositor and the Issuer intend that the sale and assignment under this Agreement be an absolute sale and assignment of the Sold Property, conveying good title to the Sold Property free and clear of any Lien other than Permitted Liens, from the Depositor to the Issuer.  The Depositor and the Issuer intend that the Sold Property not be a part of the Depositor’s estate if there is a bankruptcy or insolvency of the Depositor.  If, despite the intent of the Depositor and the Issuer, the transfer of the Sold Property under this Agreement is determined to be a pledge for a financing or is determined not to be an absolute sale and assignment, the Depositor Grants to the Issuer a security interest in the Depositor’s right, title and interest in the Sold Property to secure a loan in an amount equal to all amounts payable by the Depositor under this Agreement, all amounts payable as principal or interest on the Notes, all amounts payable as Reference Pool Servicing Fees under the Servicing Supplement and all other amounts payable by the Issuer under the Transaction Documents.  In that case, this Agreement will be a security agreement and the Issuer will have the rights and remedies of a secured party and creditor under the UCC.

 

ARTICLE III
 REPRESENTATIONS AND WARRANTIES

 

Section 3.1.                                 Depositor’s Representations and Warranties.  The Depositor makes the following representations and warranties on which the Issuer is relying in purchasing the Sold Property.  The representations and warranties are made as of the Closing Date and will survive the sale and assignment of the Sold Property by the Depositor to the Issuer under this Agreement and the pledge of the Sold Property by the Issuer to the Indenture Trustee under the Indenture:

 

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(a)                                 Organization and Qualification.  The Depositor is duly organized and validly existing as a limited liability company in good standing under the laws of the State of Delaware.  The Depositor is qualified as a foreign limited liability company in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Depositor’s ability to perform its obligations under this Agreement.

 

(b)                                 Power, Authority and Enforceability.  The Depositor has the power and authority to execute, deliver and perform its obligations under this Agreement.  The Depositor has authorized the execution, delivery and performance of this Agreement.  This Agreement is the legal, valid and binding obligation of the Depositor enforceable against the Depositor, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                                  No Conflicts and No Violation.  The completion of the transactions under this Agreement, and the performance of its obligations under this Agreement, will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Depositor is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Depositor’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document (other than this Agreement), (iii) violate the Depositor’s certificate of formation or limited liability company agreement or (iv) violate a law or, to the Depositor’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties that applies to the Depositor, which, in each case, would reasonably be expected to have a material adverse effect on the Depositor’s ability to perform its obligations under this Agreement.

 

(d)                                 No Proceedings.  To the Depositor’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties (i) asserting the invalidity of  this Agreement, (ii) seeking to prevent the completion of the transactions under this Agreement, (iii) seeking a determination or ruling that would reasonably be expected to have a material adverse effect on the Depositor’s ability to perform its obligations under, or the validity or enforceability of, this Agreement or (iv) that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for U.S. federal income or Applicable Tax State income or franchise tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than proceedings that would not reasonably be expected to have a material adverse effect on the Depositor, the performance by the Depositor of its obligations under, or the validity and enforceability of, the Transaction Documents or the Notes or the tax treatment of the Issuer or the Notes.

 

(e)                                  Not an Investment Company.  The Depositor is not required to be registered as an “investment company” under the Investment Company Act.

 

Section 3.2.                                 Depositor’s Representations and Warranties About Sold Property and 20  -   Reference Pool.

 

(a)                                 Representations and Warranties from Exchange Note Purchase Agreement.  Ford Credit made representations and warranties about the Leases and Leased Vehicles in the 20  -   Reference Pool in Section 3.3 of the Exchange Note Purchase Agreement, and has consented to the sale by the Depositor to the Issuer of the Depositor’s rights to these representations and warranties.  Under Section 2.1, the Depositor has sold to the Issuer the Depositor’s rights under the Exchange

 

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Note Purchase Agreement, including the right to require Ford Credit to reallocate any Leases and Leased Vehicles if there is a breach of Ford Credit’s representations and warranties.  In addition, the Depositor represents and warrants as of the Closing Date that the representations and warranties about the Leases and Leased Vehicles in the 20  -   Reference Pool in Section 3.3 of the Exchange Note Purchase Agreement are true and correct in all material respects.  The Issuer is relying on Ford Credit’s representations and warranties in the Exchange Note Purchase Agreement and on the Depositor’s representations and warranties in this Section 3.2(a) in purchasing the 20  -   Exchange Note, which representations and warranties will survive the sale and assignment of the 20  -   Exchange Note by the Depositor to the Issuer under this Agreement and the pledge of the 20  -   Exchange Note to the Indenture Trustee under the Indenture.

 

(b)                                 Representations and Warranties About Sold Property and 20  -   Reference Pool.  The Depositor makes the following representations and warranties about the Sold Property and the 20  -   Reference Pool on which the Issuer is relying in purchasing the Sold Property.  The representations and warranties are made as of the Closing Date and will survive the sale and assignment of the Sold Property by the Depositor to the Issuer under this Agreement and the pledge of the Sold Property by the Issuer to the Indenture Trustee under the Indenture.

 

(i)                                Enforceability of 20  -   Exchange Note.  The 20  -   Exchange Note has been duly executed, issued, authenticated and delivered and is the valid and binding obligation of the Borrowers entitled to the benefits of the Exchange Note Supplement and the Credit and Security Agreement.

 

(ii)                             Valid Sale.  This Agreement evidences a valid sale and assignment of the Sold Property from the Depositor to the Issuer, enforceable against creditors of and purchasers from the Depositor.

 

(iii)                          Good Title to Sold Property.  Immediately before the sale and assignment under this Agreement, the Depositor has good and marketable title to the Sold Property free and clear of any Lien other than Permitted Liens and, immediately after the sale and assignment under this Agreement, the Issuer will have good and marketable title to the Sold Property, free and clear of any Lien other than Permitted Liens.

 

(iv)                         Security Interest in Sold Property.

 

(A)                               This Agreement creates a valid and continuing security interest (as defined in the applicable UCC) in the Sold Property in favor of the Issuer, which is prior to any Lien, other than Permitted Liens, and is enforceable against all creditors of and purchasers from the Depositor.

 

(B)                               All filings (including UCC filings) necessary in any jurisdiction to give the Depositor a first priority, validly perfected ownership and security interest in the Purchased Property, to give the Issuer a first priority, validly perfected ownership and security interest in the Sold Property and to give the Indenture Trustee a first priority perfected security interest in the Collateral, will be made within ten days after the Closing Date.

 

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(C)                               All financing statements filed or to be filed against the Depositor in favor of the Issuer describing the Sold Property sold under this Agreement will contain a statement to the following effect:  “A purchase of or security interest in any collateral described in this financing statement will violate the rights of the Secured Party/Assignee.”

 

(D)                               The Depositor has not authorized the filing of and is not aware of any financing statements against the Depositor that include a description of collateral covering any Sold Property other than the financing statements relating to the security interest Granted to the Depositor under the Exchange Note Purchase Agreement, by the Depositor to the Issuer under this Agreement or by the Issuer to the Indenture Trustee under the Indenture, or that has been terminated.

 

(v)                            Good Title to 20  -   Reference Pool.  The applicable Titling Company has good title, or the Servicer has started procedures that will result in good title, to the Leases and Leased Vehicles in the 20  -   Reference Pool, free and clear of Liens other than Permitted Liens.

 

Section 3.3.                                 Depositor’s Reallocation of Leases and Leased Vehicles for Breach of Representations.

 

(a)                                 Investigation of Breach.  If a Responsible Person of the Depositor (i) has knowledge of a breach of a representation or warranty made in Section 3.2(a), (ii) receives notice from the Issuer, the Owner Trustee or the Indenture Trustee of a breach of a representation or warranty made in Section 3.2(a), (iii) receives a Reallocation Request from the Owner Trustee or the Indenture Trustee for a Lease and Leased Vehicle or (iv) receives a Review Report that indicates a Test Fail for a Lease and Leased Vehicle, then, in each case, the Depositor will investigate the Lease and Leased Vehicle to confirm the breach and determine if the breach has a material adverse effect on the Lease and Leased Vehicle.  None of the Servicer, the Issuer, the Owner Trustee, the Indenture Trustee or the Administrator will have an obligation to investigate whether a breach of any representation or warranty has occurred or whether any Lease and Leased Vehicle is required to be reallocated under this Section 3.3.

 

(b)                                 Reallocation of Leases and Leased Vehicles; Payment of Administrative Reallocation Amount.  The Depositor may, and if the breach has a material adverse effect on the Lease and Leased Vehicle will, reallocate the Lease and Leased Vehicle described in Section 3.3(a) to the Revolving Facility Pool by paying the Administrative Reallocation Amount on the Business Day before the Payment Date (or, with satisfaction of the Rating Agency Condition, on the Payment Date) related to the Collection Period in which the Depositor has knowledge or receives notice of and confirms the breach or, at the Depositor’s option, on or before the following Payment Date, unless the breach is cured in all material respects before that Payment Date.  If Ford Credit is the Servicer, the Depositor may cause the Administrative Reallocation Amount to be paid according to Section 4.3(c) of the Servicing Supplement.

 

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(c)                                  Reallocation of Leases and Leased Vehicles.  When the Depositor’s payment of the Administrative Reallocation Amount for a Lease and Leased Vehicle is included in Exchange Note Available Funds for a Payment Date, the Lease and Leased Vehicle will be deemed to have been reallocated to the Revolving Facility Pool, effective as of the last day of the Collection Period before the related Collection Period.  After the reallocation, the Sponsor will mark its receivables systems to indicate that the lease and leased vehicle is no longer a Lease and Leased Vehicle in the 20  -   Reference Pool.

 

(d)                                 Reallocation Sole Remedy.  The sole remedy for a breach of the Depositor’s representations and warranties made in Section 3.2(a) is (i) to require the Depositor to reallocate the Lease and Leased Vehicle under this Section 3.3 or (ii) to require the Depositor or the Indenture Trustee to enforce the obligation of Ford Credit to reallocate the Lease and Leased Vehicle under Section 3.4 of the Exchange Note Purchase Agreement.

 

Section 3.4.                                 Dispute Resolution.

 

(a)                                 Referral to Dispute Resolution.  If the Issuer, the Owner Trustee, the Indenture Trustee or a Noteholder (the “Requesting Party”) requests that the Depositor and/or the Sponsor reallocate a Lease and related Leased Vehicle due to an alleged breach of a representation and warranty in Section 3.2(a) or in Section 3.4 of the Exchange Note Purchase Agreement (each, a “Reallocation Request”), and the Reallocation Request has not been resolved within 180 days after the Depositor or the Sponsor receives the Reallocation Request, the Requesting Party may refer the matter, in its discretion, to either mediation (including non-binding arbitration) or binding third-party arbitration.  However, if the Lease subject to a Reallocation Request was part of a Review and the Review Report showed no Test Fails for the Lease, the Reallocation Request for the Lease and Leased Vehicle will be deemed to be resolved.  The Requesting Party must start the mediation or arbitration proceeding according to the ADR Rules of the ADR Organization within 90 days after the end of the 180-day period.  The Depositor and the Sponsor agree to participate in the dispute resolution method selected by the Requesting Party.

 

(b)                                 Mediation.  If the Requesting Party selects mediation for dispute resolution:

 

(i)                                The mediation will be administered by the ADR Organization using its ADR Rules.  However, if any ADR Rules are inconsistent with the procedures for mediation stated in this Section 3.4, the procedures in this Section 3.4 will control.

 

(ii)                             A single mediator will be selected by the ADR Organization from a list of neutrals maintained by it according to the ADR Rules.  The mediator must be impartial, an attorney admitted to practice in the State of New York and have at least [15] years of experience in commercial litigation and, if possible, consumer finance or asset-backed securitization matters.

 

(iii)                          The mediation will start within [15] days after the selection of the mediator and conclude within [30] days after the start of the mediation.

 

(iv)                         Expenses of the mediation will be allocated to the parties as mutually agreed by them as part of the mediation.

 

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(v)                            If the parties fail to agree at the completion of the mediation, the Requesting Party may refer the Reallocation Request to arbitration under this Section 3.4.

 

(c)                                  Arbitration.  If the Requesting Party selects arbitration for dispute resolution:

 

(i)                                The arbitration will be administered by the ADR Organization using its ADR Rules. However, if any ADR Rules are inconsistent with the procedures for arbitration stated in this Section 3.4, the procedures in this Section 3.4 will control.

 

(ii)                             A single arbitrator will be selected by the ADR Organization from a list of neutrals maintained by it according to the ADR Rules.  The arbitrator must be impartial, an attorney admitted to practice in the State of New York and have at least [15] years of experience in commercial litigation and, if possible, consumer finance or asset-backed securitization matters.  The arbitrator will be independent and impartial and will comply with the Code of Ethics for Arbitrators in Commercial Disputes in effect at the time of the arbitration.  Before accepting an appointment, the arbitrator must promptly disclose any circumstances likely to create a reasonable inference of bias or conflict of interest or likely to preclude completion of the proceedings within the stated time schedule.  The arbitrator may be removed by the ADR Organization for cause consisting of actual bias, conflict of interest or other serious potential for conflict.

 

(iii)                          The arbitrator will have the authority to schedule, hear and determine any motions, according to New York law, and will do so at the motion of any party.  Discovery will be completed with [30] days of selection of the arbitrator and will be limited for each party to [two] witness depositions not to exceed five hours, [two] interrogatories, [one] document request and [one] request for admissions.  However, the arbitrator may grant additional discovery on a showing of good cause that the additional discovery is reasonable and necessary.  Briefs will be limited to no more than [ten] pages each, and will be limited to initial statements of the case, motions and a pre-hearing brief.  The evidentiary hearing on the merits will start no later than [60] days after selection of the arbitrator and will proceed for no more than [six] consecutive Business Days with equal time allocated to each party for the presentation of evidence and cross examination.  The arbitrator may allow additional time for discovery and hearings on a showing of good cause or due to unavoidable delays.

 

(iv)                         The arbitrator will make its final determination no later than [90] days after its selection.  The arbitrator will resolve the dispute according to the terms of this Agreement and the other Transaction Documents, and may not modify or change this Agreement or the other Transaction Documents in any way.  The arbitrator will not have the power to award punitive damages or consequential damages in any arbitration conducted by them.  In its final determination, the arbitrator will determine and award the expenses of the arbitration (including filing fees, the fees of the arbitrator, expense of any record or transcript of the arbitration and administrative fees) to the parties in its reasonable discretion.  The determination of the arbitrator will be in writing and counterpart copies will be promptly delivered to the parties.  The determination will be final and non-appealable, except for actions to confirm or vacate the determination permitted under

 

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federal or State law, and may be entered and enforced in any court of competent jurisdiction.

 

(v)                            By selecting arbitration, the Requesting Party is giving up the right to sue in court, including the right to a trial by jury.

 

(vi)                         The Requesting Party may not bring a putative or certificated class action to arbitration. If this waiver of class action rights is found to be unenforceable for any reason, the Requesting Party agrees that it will bring its claims in a court of competent jurisdiction.

 

(d)                                 Additional Conditions.  For each mediation or arbitration:

 

(i)                                Any mediation or arbitration will be held in New York, New York at the offices of the mediator or arbitrator or at another location selected by the Depositor or the Sponsor.  Any party or witness may participate by teleconference or video conference.

 

(ii)                             The Depositor, the Sponsor and the Requesting Party will have the right to seek provisional relief from a competent court of law, including a temporary restraining order, preliminary injunction or attachment order, if such relief is available by law.

 

(iii)                          Neither the Depositor nor the Sponsor will be required to produce personally identifiable customer information for purposes of any mediation or arbitration.  The existence and details of any unresolved Reallocation Request, any informal meetings, mediations or arbitration proceedings , the nature and amount of any relief sought or granted, any offers or statements made and any discovery taken in the proceeding, will be confidential, privileged and inadmissible for any purpose in any mediation, arbitration, litigation or other proceeding.  The parties will keep this information confidential and will not disclose or discuss it with any third party (other than a party’s attorneys, experts, accountants and other advisors, as reasonably required in connection with the mediation or arbitration proceeding under this Section 3.4), except as required by law, regulatory requirement or court order.  If a party to a mediation or arbitration proceeding receives a subpoena or other request for information from a third party (other than a governmental regulatory body) for confidential information of the other party to the mediation or arbitration proceeding, the recipient will promptly notify the other party and will provide the other party with the opportunity to object to the production of its confidential information.

 

Section 3.5.                                 Issuer’s Representations and Warranties.  The Issuer represents and warrants to the Depositor as of the Closing Date:

 

(a)                                 Organization and Qualification.  The Issuer is duly formed and validly existing as a statutory trust in good standing under the laws of the State of Delaware.  The Issuer is qualified as a foreign statutory trust in good standing and has obtained all necessary licenses and approvals in all jurisdictions in which the ownership or lease of its properties or the conduct of its activities requires the qualification, license or approval, unless the failure to obtain the qualifications, licenses or approvals would not reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under this Agreement.

 

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(b)                                 Power, Authority and Enforceability.  The Issuer has the power and authority to execute, deliver and perform its obligations under this Agreement.  The Issuer has authorized the execution, delivery and performance of this Agreement.  This Agreement is the legal, valid and binding obligation of the Issuer and enforceable against the Issuer, except as may be limited by insolvency, bankruptcy, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles.

 

(c)                                  No Conflicts and No Violation.  The completion of the transactions under this Agreement and the performance of its obligations under this Agreement will not (i) conflict with, or be a breach or default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document under which the Issuer is a debtor or guarantor, (ii) result in the creation or imposition of a Lien on the Issuer’s properties or assets under the terms of any indenture, mortgage, deed of trust, loan agreement, guarantee or similar document (other than the Indenture), (iii) violate the Trust Agreement or (iv) violate a law or, to the Issuer’s knowledge, an order, rule or regulation of a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Issuer or its properties that applies to the Issuer, which, in each case, would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under this Agreement.

 

(d)                                 No Proceedings.  To the Issuer’s knowledge, there are no proceedings or investigations pending or threatened in writing before a federal or State court, regulatory body, administrative agency or other governmental instrumentality having jurisdiction over the Depositor or its properties (i) asserting the invalidity this Agreement, (ii) seeking to prevent the completion of the transactions under this Agreement, (iii) seeking a determination or ruling that would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under, or the validity or enforceability of, this Agreement or (iv) that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for U.S. federal income or Applicable Tax State income or franchise tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than proceedings that would not reasonably be expected to have a material adverse effect on the Issuer, the performance by the Issuer of its obligations under, or the validity and enforceability of, the Transaction Documents or the Notes or the tax treatment of the Issuer or the Notes.

 

(e)                                  Not an Investment Company.  The Issuer is not required to be registered as an “investment company” under the Investment Company Act.

 

ARTICLE IV
 DEPOSITOR’S AGREEMENTS

 

Section 4.1.                                 Required Reserve Amount.  On the Closing Date, the Depositor will deposit, or cause to be deposited, the Required Reserve Amount in the Reserve Account from the net proceeds of the sale of the Notes.

 

Section 4.2.                                 Financing Statements.

 

(a)                                 Filing of Financing Statements.  The Depositor will file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices necessary to perfect the Issuer’s interest in the Sold Property.  The Depositor will promptly deliver to the Issuer and the Indenture Trustee file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.

 

(b)                                 Issuer and Indenture Trustee Authorized to File Financing Statements.  The Depositor authorizes the Issuer and the Indenture Trustee to file financing and continuation statements, and amendments to the statements, in the jurisdictions and with the filing offices as the

 

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Issuer or the Indenture Trustee may determine are necessary or advisable to perfect the Issuer’s interest in the Sold Property.  The financing and continuation statements may describe the Sold Property as the Issuer or the Indenture Trustee may reasonably determine to perfect the Issuer’s interest in the Sold Property.  The Issuer or the Indenture Trustee will promptly deliver to the Depositor file-stamped copies of, or filing receipts for, any financing statement, continuation statement and amendment to a previously filed financing statement.

 

(c)                                  Relocation of Depositor.  The Depositor will notify the Owner Trustee and the Indenture Trustee at least ten days before a relocation of its chief executive office or change in its corporate structure, form of organization or jurisdiction of organization if it could require the filing of a new financing statement or an amendment to a previously filed financing statement under Section 9-307 of the UCC.  The Depositor will promptly file new financing statements or amendments to all previously filed financing statements.  The Depositor will maintain its chief executive office within the United States and will maintain its jurisdiction of organization in only one State.

 

(d)                                 Change of Depositor’s Name.  The Depositor will notify the Owner Trustee and the Indenture Trustee at least ten days before any change in the Depositor’s name that could make a financing statement filed under this Section 4.2 seriously misleading under Section 9-506 of the UCC.  The Depositor will promptly file amendments to all previously filed financing statements.

 

Section 4.3.                                 No Sale or Lien by Depositor.  Except for the sale and assignment under this Agreement, the Depositor will not sell or assign any Sold Property to another Person, or Grant or allow a Lien on an interest in any Sold Property.  The Depositor will defend the Issuer’s interest in the Sold Property against claims of third parties claiming through the Depositor.

 

Section 4.4.                                 Expenses.  The Depositor will pay the costs and expenses to perform its obligations under this Agreement and the Issuer and the Indenture Trustee’s reasonable expenses to perfect the Issuer’s interest in the Sold Property and to enforce the Depositor’s obligations under this Agreement.

 

ARTICLE V
 OTHER AGREEMENTS

 

Section 5.1.                                 Obligations Unaffected.  Any invalidity, illegality or irregularity of a Lease or Leased Vehicle in the 20  -   Reference Pool will not affect the Depositor’s obligations under this Agreement.

 

Section 5.2.                                 No Petition.  Each party agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all Secured Obligations, including all Exchange Notes, and any other Securities, (b) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (c) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) either Titling Company or either Holding Company, (ii) the Depositor or (iii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 5.2 will survive the termination of this Agreement.

 

10

 

Section 5.3.                                 Limited Recourse.  Each party agrees that any claim that it may seek to enforce against the other party under this Agreement is limited to the Sold Property only and is not a claim against the other party’s assets as a whole or against assets other than the Sold Property.

 

Section 5.4.                                 Obligations Under 20  -   Exchange Note.

 

(a)                                 Borrowers Obligations.  The Borrowers’ obligations under the 20  -   Exchange Note and the other Sold Property are solely the Borrowers’ obligations and are not the Depositor’s obligation or an interest in any of the Depositor’s assets.  The Issuer acknowledges and agrees that it has no right, title or interest in any assets of the Depositor for the payment of amounts due or for the performance of obligations under the 20  -   Exchange Note or the other Sold Property.

 

(b)                                 Subordination of Claims.  The Issuer acknowledges Section 9.4 of the Credit and Security Agreement regarding the subordination of claims against the Borrowers and agrees to be bound by it as an Exchange Noteholder.

 

Section 5.5.                                 Limitation of Liability of Owner Trustee.  This Agreement has been signed on behalf of the Issuer by                                       not in its individual capacity but solely in its capacity as Owner Trustee of the Issuer.  In no event will                                     in its individual capacity or a beneficial owner of the Issuer be liable for the representations, warranties, covenants, agreements or other obligations of the Issuer under this Agreement.  For all purposes under this Agreement, the Owner Trustee is subject to, and entitled to the benefits of, the Trust Agreement.

 

Section 5.6.                                 Issuer Obligation.  No recourse may be taken, directly or indirectly, for the obligations of the Issuer or the Owner Trustee under this Agreement or a document delivered under this Agreement, against (a) the Owner Trustee in its individual capacity, (b) any holder of a beneficial interest in the Issuer, (c) any partner, owner, beneficiary, officer, director, employee or agent of the Owner Trustee, in its individual capacity or (d) any holder of a beneficial interest in the Owner Trustee, in its individual capacity, except as that Person may have expressly agreed.

 

Section 5.7.                                 Termination.  This Agreement will terminate on the payment in full or cancellation of the 20  -   Exchange Note.

 

ARTICLE VI
 MISCELLANEOUS

 

Section 6.1.                                 Amendments.

 

(a)                                 Amendments.  The parties may amend this Agreement:

 

(i)                                to clarify an ambiguity, correct an error or correct or supplement any term of this Agreement that may be defective or inconsistent with the other terms of this Agreement, in each case, without the consent of the Noteholders or any other Person;

 

(ii)                             to add, change or eliminate terms of this Agreement, in each case, without the consent of the Noteholders or any other Person, if the Depositor delivers an Officer’s

 

11

 

Certificate to the Issuer, the Owner Trustee and the Indenture Trustee stating that the amendment will not have a material adverse effect on the Noteholders; or

 

(iii)                          to add, change or eliminate terms of this Agreement for which an Officer’s Certificate is not or cannot be delivered under Section 6.1(a)(ii), with the consent of the Noteholders of a majority of the Note Balance of each Class of Notes Outstanding (with each affected Class voting separately, except that all Noteholders of Class A Notes will vote together as a single class).

 

(b)                                 Notice of Amendments.  The Depositor or the Issuer will notify the Rating Agencies in advance of any amendment.   Promptly after the execution of an amendment, the Depositor will deliver a copy of the amendment to the Indenture Trustee and the Rating Agencies.

 

Section 6.2.                                 Benefit of Agreement; Third-Party Beneficiaries.  This Agreement is for the benefit of and will be binding on the parties and their permitted successors and assigns.  The Indenture Trustee, for the benefit of the Secured Parties, will be a third-party beneficiary of this Agreement and may enforce this Agreement against the Depositor.  No other Person will have any right or obligation under this Agreement.

 

Section 6.3.                                 Notices.

 

(a)                                 Notices to Parties.  All notices, requests, directions, consents, waivers or other communications to or from the parties must be in writing and will be considered received by the recipient:

 

(i)                                for overnight mail, on delivery or, for registered first class mail, postage prepaid, three days after deposit in the mail properly addressed to the recipient;

 

(ii)                             for a fax, when receipt is confirmed by telephone, reply email or reply fax from the recipient;

 

(iii)                          for an email, when receipt is confirmed by telephone or reply email from the recipient; and

 

(iv)                         for an electronic posting to a password-protected website to which the recipient has access, on delivery of an email (without the requirement of confirmation of receipt) stating that the electronic posting has been made.

 

(b)                                 Notice Addresses.  A notice, request, direction, consent, waiver or other communication must be addressed to the recipient at its address stated in Schedule A to the Indenture, which address the party may change by notifying the other party.

 

Section 6.4.                                 GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 6.5.                                 Submission to Jurisdiction.  Each party submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for legal proceedings relating to this

 

12

 

Agreement.  Each party irrevocably waives, to the fullest extent permitted by law, any objection that it may now or in the future have to the venue of a proceeding brought in such a court and any claim that the proceeding was brought in an inconvenient forum.

 

Section 6.6.                                 WAIVER OF JURY TRIAL.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, THE RIGHT TO TRIAL BY JURY IN LEGAL PROCEEDING RELATING TO THIS AGREEMENT.

 

Section 6.7.                                 No Waiver; Remedies.  No party’s failure or delay in exercising a power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of a power, right or remedy will preclude any other or further exercise of the power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies under this Agreement are in addition to any powers, rights and remedies under law.

 

Section 6.8.                                 Severability.  If a part of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Agreement and will not affect the validity, legality or enforceability of the remaining Agreement.

 

Section 6.9.                                 Headings.  The headings in this Agreement are included for convenience and will not affect the meaning or interpretation of this Agreement.

 

Section 6.10.                          Counterparts.  This Agreement may be executed in multiple counterparts.  Each counterpart will be an original and all counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

13

 

EXECUTED BY:

 

	
 
    	
FORD   CREDIT AUTO LEASE TWO LLC,
    
	
 
    	
 
    	
acting for its series of limited liability company   interests designated as the “20  -   Series,” as Depositor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
FORD   CREDIT AUTO LEASE TRUST 20  -  ,
    
	
 
    	
 
    	
as   Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
                                                             ,   not in its individual capacity but solely as Owner Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Exchange Note Sale Agreement]EXHIBIT 10.5

 

 

20  -   SERVICING SUPPLEMENT

 

to the

 

SECOND AMENDED AND RESTATED 
 SERVICING AGREEMENT

 

dated as of July 22, 2005, 
 as amended and restated as of December 1, 2015

 

among

 

FORD MOTOR CREDIT COMPANY LLC,
 as Servicer for the Collateral Specified Interests
 and the 20  -   Reference Pool and as Lender,

 

CAB EAST LLC and
 CAB WEST LLC,
 each acting for its series of limited liability company interests 
 designated as the “Collateral Specified Interest,” 
 as a Titling Company

 

and

 

HTD LEASING LLC,
 as Collateral Agent

 

Dated as of          , 20

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I   USAGE AND DEFINITIONS
    	
1
    
	
 
    	
 
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
 
    	
 
    
	
ARTICLE II   20  -   REFERENCE POOL
    	
1
    
	
 
    	
 
    
	
Section 2.1.
    	
Acknowledgment
    	
1
    
	
 
    	
 
    
	
ARTICLE III   SERVICING OF LEASES AND LEASED VEHICLES
    	
2
    
	
 
    	
 
    
	
Section 3.1.
    	
Engagement
    	
2
    
	
Section 3.2.
    	
Collection of Payments;   Extensions and Amendments
    	
2
    
	
Section 3.3.
    	
Servicer’s Reallocation   of Leases and Leased Vehicles
    	
2
    
	
Section 3.4.
    	
Servicer Reports and   Compliance Statements
    	
3
    
	
Section 3.5.
    	
Notices Under Servicing   Agreement
    	
4
    
	
Section 3.6.
    	
Sarbanes-Oxley   Certificates
    	
4
    
	
Section 3.7.
    	
Securities and Exchange   Commission Filings
    	
5
    
	
Section 3.8.
    	
Review of Servicer’s   Records
    	
5
    
	
Section 3.9.
    	
Servicer’s Authorized   and Responsible Persons
    	
5
    
	
Section 3.10.
    	
Servicer’s Fees
    	
5
    
	
Section 3.11.
    	
Servicer’s Expenses
    	
6
    
	
 
    	
 
    
	
ARTICLE IV   ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS
    	
6
    
	
 
    	
 
    
	
Section 4.1.
    	
Bank Accounts
    	
6
    
	
Section 4.2.
    	
Investment of Funds in   Bank Accounts
    	
7
    
	
Section 4.3.
    	
Deposits and Payments
    	
8
    
	
Section 4.4.
    	
[Advances]
    	
9
    
	
Section 4.5.
    	
[Payment of Advances]
    	
10
    
	
Section 4.6.
    	
Reserve Account Draw   Amount
    	
10
    
	
Section 4.7.
    	
Direction to Indenture   Trustee for Distributions
    	
10
    
	
 
    	
 
    
	
ARTICLE V   SERVICER
    	
10
    
	
 
    	
 
    
	
Section 5.1.
    	
Servicer’s   Representations and Warranties
    	
10
    
	
Section 5.2.
    	
Indemnities of Servicer
    	
10
    
	
Section 5.3.
    	
Reference Pool Servicer   Termination Events
    	
11
    
	
Section 5.4.
    	
Servicer May Own   Exchange Note and Notes
    	
11
    
	
 
    	
 
    
	
ARTICLE VI   TERMINATION
    	
12
    
	
 
    	
 
    
	
Section 6.1.
    	
Clean-Up Call
    	
12
    
	
Section 6.2.
    	
Termination of   Servicing Supplement
    	
12
    
	
 
    	
 
    
	
ARTICLE VII   OTHER AGREEMENTS
    	
12
    
	
 
    	
 
    
	
Section 7.1.
    	
No Petition
    	
12
    
	
Section 7.2.
    	
Conflict with Servicing   Agreement
    	
12
    
	
 
    	
 
    
	
ARTICLE VIII   MISCELLANEOUS
    	
13
    
	
 
    	
 
    
	
Section 8.1.
    	
Amendments
    	
13
    
	
Section 8.2.
    	
Benefit of Agreement;   Third-Party Beneficiaries
    	
13
    
	
Section 8.3.
    	
GOVERNING LAW
    	
13
    
	
Section 8.4.
    	
Severability
    	
13
    
	
Section 8.5.
    	
Headings
    	
13
    
	
Section 8.6.
    	
Counterparts
    	
13
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
Form of Monthly   Investor Report
    	
EA-1
    
				

 

i

 

20  -   SERVICING SUPPLEMENT, dated as of        , 20   (this “Supplement”), to the Second Amended and Restated Servicing Agreement, dated as of July 22, 2005, as amended and restated as of December 1, 2015 (the “Servicing Agreement”), among FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company, as Servicer for the Collateral Specified Interests and the 20  -   Reference Pool and as Lender under the Credit and Security Agreement, CAB EAST LLC, a Delaware limited liability company, and CAB WEST LLC, a Delaware limited liability company, each acting for its series of limited liability company interests designated as the “Collateral Specified Interest,” as a Titling Company, and HTD Leasing LLC, as Collateral Agent.

 

BACKGROUND

 

The Borrowers and the Lender have determined to issue the 20  -   Exchange Note and to designate the 20  -   Reference Pool under the Credit and Security Agreement and the Exchange Note Supplement.

 

The parties have determined to enter into this Supplement according to Section 2.3 of the Servicing Agreement to acknowledge the designation of the 20  -   Reference Pool and identify the additional obligations required of the Servicer for the 20  -   Reference Pool and the 20  -   Exchange Note.

 

The parties agree as follows:

 

ARTICLE I
 USAGE AND DEFINITIONS

 

Section 1.1.           Usage and Definitions.  Capitalized terms used but not defined in this Supplement are defined in Appendix 1 to the 20  -   Exchange Note Supplement, dated as of          , 20   (the “Exchange Note Supplement”), to the Second Amended and Restated Credit and Security Agreement, dated as of July 22, 2005, as amended and restated as of December 1, 2015 (the “Credit and Security Agreement”), among CAB East LLC and CAB West LLC, as Borrowers, U.S. Bank National Association, as Administrative Agent, the Collateral Agent and Ford Credit, as Lender and Servicer, or in Appendix A to the Credit and Security Agreement.  Appendix 1 and Appendix A also contain usage rules that apply to this Supplement.  Appendix 1 and Appendix A are incorporated by reference into this Supplement.

 

ARTICLE II
 20  -   REFERENCE POOL

 

Section 2.1.           Acknowledgment.  The parties acknowledge that the Leases and Leased Vehicles listed in Schedule A to the Exchange Note Supplement have been allocated to the Reference Pool designated as the “20  -   Reference Pool” under the Exchange Note Supplement.  References in this Supplement or in any other Transaction Document to “Leases” and “Leased Vehicle” will be to the Leases and Leased Vehicles, respectively, then allocated to the 20  -   Reference Pool, unless the context otherwise requires.

 

 

ARTICLE III
 SERVICING OF LEASES AND LEASED VEHICLES

 

Section 3.1.           Engagement.  Each party agrees that the Servicer under the Servicing Agreement is also engaged as Servicer under this Supplement for the 20  -   Reference Pool and the 20  -   Exchange Note and will act as agent of each Titling Company in the management and control of the Leases and Leased Vehicles and for all other purposes in this Supplement and the Servicing Agreement, and Ford Credit accepts the engagement.

 

Section 3.2.           Collection of Payments; Extensions and Amendments.  The Servicer will use reasonable efforts to collect all payments due under each Lease in the 20  -   Reference Pool. The Servicer may waive late payment charges or other fees that may be collected in the ordinary course of servicing a Lease.  The Servicer may grant extensions, refunds, rebates or adjustments on a Lease or amend a Lease according to the Servicing Procedures.  However, if the Servicer (a) grants a Payment Extension or Term Extension on a Lease in the 20  -   Reference Pool resulting in the final payment date of the Lease being later than the Final Scheduled Payment Date of the most junior Class of Notes issued by the Issuer or (b) modifies the amount of the Base Payment due on a Lease, it will reallocate the Lease and the related Leased Vehicle to the Revolving Facility Pool under Section 3.3, unless it is required to take the action by law or court order.

 

Section 3.3.           Servicer’s Reallocation of Leases and Leased Vehicles.

 

(a)           Reallocation for Servicer Modifications.  If an extension or modification of a Lease and Leased Vehicle is made that requires them to be reallocated under Section 3.2, the Servicer will reallocate the Lease and Leased Vehicle to the Revolving Facility Pool.

 

(b)           Reallocation for Breach of Servicer’s Obligations.  If a Responsible Person of the Servicer has knowledge, or receives notice from the Collateral Agent, the Depositor, the 20  -   Exchange Noteholder, the Owner Trustee or the Indenture Trustee, of a breach of the Servicer’s obligations in Section 3.3(e) or (f) of the Servicing Agreement that has a material adverse effect on a Lease or Leased Vehicle, the Servicer will reallocate the Lease and Leased Vehicle to the Revolving Facility Pool.

 

(c)           Reallocation for System Limitation or Inability to Service.  If the Servicer, in its sole discretion, determines that as a result of a receivables systems error or receivables systems limitation or for any other reason the Servicer is unable to service a Lease according to the Servicing Procedures and the terms of this Supplement and the Servicing Agreement, the Servicer may reallocate the Lease and Leased Vehicle to the Revolving Facility Pool.

 

(d)           Reallocation for Disaster Extension Offers.  If the Servicer offers Payment Extensions to Lessees located in a major disaster area as declared by the Federal Emergency Management Agency before the Closing Date and a Lessee accepts the offered Payment Extensions which results in the related Lease being extended for a total of more than three months, the Servicer will reallocate the related Lease and Leased Vehicle to the Revolving Facility Pool.

 

(e)           Reallocation of Leases and Leased Vehicles; Payment of Administrative Reallocation Amount.  For any reallocation of a Lease and Leased Vehicle by the Servicer under this Section 3.3, the Servicer will reallocate the Lease and Leased Vehicle by paying the

 

2

 

Administrative Reallocation Amount on the Business Day before the Payment Date (or, with satisfaction of the Rating Agency Condition, on the Payment Date) related to the Collection Period in which the Servicer made the extension or modification on the Lease, has knowledge or receives notice of the breach or determines the need for reallocation or, at the Servicer’s option, on or before the following Payment Date, unless the breach is cured in all material respects before that Payment Date.  If Ford Credit is the Servicer, it may pay any Administrative Reallocation Amounts according to Section 4.3(c).

 

(f)            Reallocation of Leases and Leased Vehicles.  When the Servicer’s payment of the Administrative Reallocation Amount for a Lease and Leased Vehicle is included in Exchange Note Available Funds for a Payment Date, the Lease and Leased Vehicle will be deemed to have been reallocated to the Revolving Facility Pool, effective as of the last day of the Collection Period before the related Collection Period.  After the reallocation, the Servicer will mark its receivables systems to indicate that the lease and leased vehicle is no longer a Lease and Leased Vehicle in the 20  -   Reference Pool.

 

(g)           No Obligation to Investigate.  None of the Servicer, the Collateral Agent, the Issuer, the Owner Trustee, the Indenture Trustee, the Sponsor, the Depositor or the Administrator will be obligated to investigate whether a breach or other event has occurred that would require the reallocation of any Lease and Leased Vehicle under this Section 3.3 or whether any Lease and Leased Vehicle is required to be reallocated under this Section 3.3.

 

(h)           Reallocation is Sole Remedy.  The sole remedy of the Collateral Agent, the Depositor, the 20  -   Exchange Noteholder, the Owner Trustee, the Indenture Trustee and the Secured Parties for the occurrence of a condition stated in Section 3.2 or a breach of the covenants made by the Servicer in Section 3.3(e) or (f) of the Servicing Agreement is the Servicer’s reallocation of the Lease and the Leased Vehicle to the Revolving Facility Pool under this Section 3.3.

 

Section 3.4.           Servicer Reports and Compliance Statements.

 

(a)           Monthly Investor Report.  At least two Business Days before each Payment Date, the Servicer will deliver to the Depositor, the Issuer, the Indenture Trustee, the Note Paying Agent, the Administrator and the Rating Agencies a servicing report substantially in the form of Exhibit A (the “Monthly Investor Report”) for that Payment Date and the related Collection Period.  A Responsible Person of the Servicer will certify that the information in the Monthly Investor Report is accurate in all material respects.

 

(b)           Annual Statement of Compliance.  The Servicer will deliver to the Depositor, the Issuer, the Indenture Trustee, the Administrator and the Rating Agencies within 90 days after the end of each year, starting with the year after the Closing Date, an Officer’s Certificate signed by a Responsible Person of the Servicer, stating that (i) a review of the Servicer’s activities during the prior year and of its performance under this Supplement and the Servicing Agreement has been made under the Responsible Person’s supervision and (ii) to the Responsible Person’s  knowledge, based on the review, the Servicer has fulfilled in all material respects all of its obligations under this Supplement and the Servicing Agreement throughout the prior year or, if there has been a failure to fulfill any obligation in any material respect, stating each failure known to the

 

3

 

Responsible Person and the nature and status of the failure.  A copy of this Officer’s Certificate may be obtained by any Noteholder or Note Owner by request to the Indenture Trustee.

 

(c)           Report on Assessment of Compliance with Servicing Criteria and Attestation.  The Servicer will:

 

(i)           deliver to the Depositor, the Issuer, the Indenture Trustee, the Administrator and the Rating Agencies, a report on its assessment of compliance with the minimum servicing criteria during the prior year, including disclosure of any material instance of non-compliance identified by the Servicer, as required by Rules 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB; and

 

(ii)          cause a firm of registered public accountants to deliver an attestation report on the assessment of compliance with the minimum servicing criteria that (A) satisfies the requirements of Rule 13a-18 or 15d-18 under the Exchange Act, as applicable, (B) complies with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and (C) indicates that the firm is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act.

 

These reports will be delivered within 90 days after the end of each year, starting in the year after the Closing Date.  A copy of these reports may be obtained by any Noteholder or Note Owner by a request to the Indenture Trustee.

 

(d)           Termination of Reporting Obligation.  The Servicer’s obligation to deliver or cause the delivery of reports under this Section 3.4 will terminate on payment in full of the Notes.

 

Section 3.5.           Notices Under Servicing Agreement.

 

(a)           Notices and Certificates Under Servicing Agreement.  The Servicer will deliver each notice or certificate received by it or delivered by it under the Servicing Agreement relating to this Supplement or the 20  -   Reference Pool to the Issuer, the Indenture Trustee and the Administrator within five Business Days of receipt or delivery by the Servicer.

 

(b)           Notice of Merger or Consolidation.  The Servicer will notify the Exchange Noteholder and the Rating Agencies of any merger, consolidation, succession or assignment under Section 7.7 of the Servicing Agreement.

 

(c)           Notice of Reference Pool Servicer Termination Event.  The Servicer will notify the Depositor, the Issuer, the Indenture Trustee, the Administrator and the Rating Agencies of any Reference Pool Servicer Termination Event for the 20  -   Reference Pool or any event that with the giving of notice or lapse of time, or both, would become a Reference Pool Servicer Termination Event for the 20  -   Reference Pool, no later than five Business Days after a Responsible Person of the Servicer has knowledge of the event.

 

Section 3.6.           Sarbanes-Oxley Certificates.  If directed by the Administrator, the Servicer will prepare, execute and deliver all certificates or other documents required to be delivered by the Issuer under the Sarbanes-Oxley Act of 2002.

 

4

 

Section 3.7.           Securities and Exchange Commission Filings.  To the extent permitted by law, the Servicer is authorized to execute and, on the request of the Issuer or the Administrator, will execute and file, on behalf of the Issuer, any Securities and Exchange Commission filings required to be filed by the Issuer under Section 7.3 of the Indenture.

 

Section 3.8.           Review of Servicer’s Records.  The Servicer will maintain records and documents relating to its performance under this Supplement and the Servicing Agreement according to its customary business practices.  On reasonable request not more than once during any year, the Servicer will give the Issuer, the Depositor, the Administrator, the Owner Trustee and the Indenture Trustee (or their representatives) access to the records and documents to conduct a review of the Servicer’s performance under this Supplement and the Servicing Agreement.  Any access or review will be conducted at the Servicer’s offices during its normal business hours at a time reasonably convenient to the Servicer and in a manner that will minimize disruption to its business operations.  Any access or review will be subject to the Servicer’s confidentiality and privacy policies.

 

Section 3.9.           Servicer’s Authorized and Responsible Persons.  On or before the Closing Date, the Servicer will notify the Indenture Trustee and the Owner Trustee of each Person who (a) will be authorized to give instructions and directions to the Indenture Trustee and the Owner Trustee on behalf of the Servicer and (b) is a Responsible Person for the Servicer.  The Servicer may change such Persons by notifying the Indenture Trustee and the Owner Trustee.

 

Section 3.10.         Servicer’s Fees.

 

(a)           Reference Pool Servicing Fee.  As compensation for performing its obligations under the Servicing Agreement and this Supplement relating to the 20  -   Reference Pool, the Servicer will be paid the Reference Pool Servicing Fee.

 

(i)           The “Reference Pool Servicing Fee” will, for a Collection Period, be an amount equal to the sum of (A) the product of: (1) one-twelfth of 1.00%; times (2) the Pool Balance as of the last day of the prior Collection Period (or the Cutoff Date for the first Collection Period), plus (B) the portion of the Reference Pool Servicing Fee for the prior Collection Period, if any, that was not paid on the related Payment Date.

 

(ii)          The Reference Pool Servicing Fee will be payable solely from, and the right of the Servicer to receive the Reference Pool Servicing Fee will be limited in recourse to, the 20  -   Collections and other amounts applied to the payment of that fee under the Exchange Note Supplement.

 

(b)           Lease Administration Amounts.  As additional compensation for performing its obligations under the Servicing Agreement and this Supplement and as reimbursement for costs and expenses incurred in performing its obligations, the Servicer will be entitled to retain for its own account Lease Administration Amounts (or to withdraw and retain Lease Administrative  Amounts that nevertheless have been deposited in the Exchange Note Collection Account).  Lease Administration Amounts are the property of the Servicer.

 

(c)           Administration Fee.  As compensation for the performance of its obligations under the Servicing Agreement and this Supplement relating to the servicing of the 20  -   Exchange

 

5

 

Note, the Servicer will be entitled to the Administration Fee, payable according to the Exchange Note Supplement.

 

Section 3.11.         Servicer’s Expenses.  If Ford Credit is the Servicer, it may retain for its own account 20  -   Collections to the extent of reimbursable amounts under Section 3.8 of the Servicing Agreement for the 20  -   Reference Pool.

 

ARTICLE IV
 ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS

 

Section 4.1.           Bank Accounts

 

(a)           Establishment of Bank Accounts.  On or before the Exchange Note Issuance Date, the Servicer will establish the following segregated trust accounts at a Qualified Institution (initially the corporate trust department of                 ), each in the name “                    , as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 20  -  ”, to be designated as follows:

 

(i)            “Exchange Note Collection Account” with account number       ;

 

(ii)           “Collection Account” with account number       ; and

 

(iii)          “Reserve Account” with account number       .

 

(b)           Control of the Bank Accounts.  Each of the Bank Accounts will be under the control of the Indenture Trustee so long as the Bank Accounts remain subject to the Lien of the Indenture, except that the Servicer may make deposits to and direct the Indenture Trustee to make deposits to or withdrawals from the Bank Accounts according to the Transaction Documents.  The Servicer may direct the Indenture Trustee to withdraw from the Exchange Note Collection Account and pay to the Servicer or as directed by the Servicer amounts that are not Exchange Note Available Funds for a Collection Period or that were deposited in the Exchange Note Collection Account in error.  Following the payment in full of the Notes and the release of the Bank Accounts from the Lien of the Indenture, the Exchange Note Collection Account will be under the control of the Collateral Agent, the Collection Account will be under the control of the Servicer and the Reserve Account will be under the control of the Depositor.  Following the payment in full of the 20  -   Exchange Note, the Exchange Note Collection Account will be under the control of the Borrowers.

 

(c)           Benefit of Accounts; Deposits and Withdrawals.  The Bank Accounts and all cash, money, securities, investments, financial assets and other property deposited in or credited to them will be held by the Indenture Trustee (i) until the payment in full of the Notes and the release of the Bank Accounts from the Lien under the Indenture, as secured party for the benefit of the Secured Parties, (ii) then, until the payment in full of the 20  -   Exchange Note, as agent  of the Collateral Agent and (iii) then, as agent of the Borrowers.  All deposits to and withdrawals from the Bank Accounts will be made according to the Transaction Documents.

 

6

 

(d)           Maintenance of Accounts.  If an institution maintaining the Bank Accounts ceases to be a Qualified Institution, the Servicer will, with the Indenture Trustee’s assistance as necessary, move the Bank Accounts to a Qualified Institution within 30 days.

 

(e)           Compliance.  Each Bank Account will be subject to the Account Control Agreement or the Titling Company Account Control Agreement.  The Servicer will ensure that the Account Control Agreement and the Titling Company Account Control Agreement require the Qualified Institution maintaining the Bank Accounts to comply with “entitlement orders” (as defined in Section 8-102 of the UCC) from the Indenture Trustee without further consent of the Issuer, if the Notes are Outstanding, or the Borrowers, if the 20  -   Exchange Note is Outstanding, and to act as a “securities intermediary” according to the UCC.

 

Section 4.2.           Investment of Funds in Bank Accounts.

 

(a)           Permitted Investments.  If no Default, Event of Default or Exchange Note Default has occurred and is continuing, the Servicer may instruct the Indenture Trustee to invest any funds in the Bank Accounts in Permitted Investments and, if investment instructions are received, the Indenture Trustee will direct the Qualified Institution maintaining the Bank Accounts to invest the funds in the Bank Accounts in those Permitted Investments.  The investment instructions from the Servicer may be in the form of a standing instruction.  If (i) the Servicer fails to give investment instructions for any funds in a Bank Account to the Indenture Trustee by 11:00 a.m. New York time (or other time as may be agreed by the Indenture Trustee) on the Business Day before a Payment Date or (ii) the Qualified Institution receives notice from the Indenture Trustee that a Default, Event of Default or Exchange Note Default has occurred and is continuing for the Notes or the 20  -   Exchange Note, the Qualified Institution will invest and reinvest funds in the Bank Accounts according to the last investment instructions received, if any.  If no prior investment instructions have been received or if the instructed investments are no longer available or permitted, the Indenture Trustee will notify the Servicer and request new investment instructions, and the funds will remain uninvested until new investment instructions are received.  The Servicer may direct the Indenture Trustee to consent, vote, waive or take any other action, or not to take any action, on any matters available to the holder of the Permitted Investments.

 

(b)           Maturity of Investments.  Any Permitted Investments of funds in the Bank Accounts (or any reinvestments of the Permitted Investments) for a Collection Period must mature, if applicable, and be available no later than the Business Day before the related Payment Date.  However, funds in the Reserve Account may be invested in Permitted Investments that will not mature or be available before the related Payment Date if the Rating Agency Condition has been satisfied for the investment.  Any Permitted Investments with a maturity date will be held to their maturity, except that such Permitted Investments may be sold or disposed of before their maturity (i) if they relate to funds in the Reserve Account required to satisfy the Reserve Account Draw Amount on a Payment Date or (ii) in connection with the sale or liquidation of the Leases and Leased Vehicles following an Exchange Note Default under Section 6.6(a) of the Credit and Security Agreement.

 

(c)           No Liability for Investments.  None of the Depositor, the Servicer, the Indenture Trustee or the Qualified Institution maintaining any Bank Account will be liable for the selection

 

7

 

of Permitted Investments or for investment losses incurred on Permitted Investments (other than in the capacity as obligor, if applicable).

 

(d)           Continuation of Liens in Investments.  The Servicer will not direct the Indenture Trustee to make any investment of any funds or to sell any investment held in the Bank Account unless the security interest Granted and perfected in the account in favor of the Indenture Trustee will continue to be perfected in the investment or the proceeds of the sale without further action by any Person.

 

(e)           Investment Earnings.  The Servicer will receive investment earnings (net of losses and investment expenses) on funds in the Bank Accounts as additional compensation for the servicing of the Leases and Leased Vehicles.  The Servicer will direct the Indenture Trustee to withdraw the investment earnings and distribute them to the Servicer on each Payment Date.

 

Section 4.3.           Deposits and Payments.

 

(a)           Exchange Note Issuance Date Deposit.  On the Exchange Note Issuance Date, the Servicer will deposit in the Exchange Note Collection Account an amount equal to the sum of (i) the Cutoff Date Payahead Amount and (ii) all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (excluding Recoveries) received and applied on the Leases during the period from the Cutoff Date to two Business Days before the Exchange Note Issuance Date.

 

(b)           Deposit of 20  -   Collections.

 

(i)           If the Servicer’s short term unsecured debt is not rated at least the Monthly Deposit Required Ratings or a Reference Pool Servicer Termination Event for the 20  -   Reference Pool occurs, the Servicer will deposit in the Exchange Note Collection Account all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (excluding Recoveries) received and applied on the Leases within two Business Days after application.

 

(ii)          If the Servicer is Ford Credit and Ford Credit’s short term unsecured debt is rated at least [“F1+” by Fitch, “P-1” by Moody’s and “A-1” by Standard & Poor’s] (the “Monthly Deposit Required Ratings”), Ford Credit may deposit all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (excluding Recoveries) received and applied on the Leases in the Exchange Note Collection Account on the Business Day before each Payment Date or, with satisfaction of the Rating Agency Condition, on each Payment Date.

 

(iii)         The Servicer may deposit in the Exchange Note Collection Account all Administrative Reallocation Amounts, [Active Lease Advances,] Payment Extension Fees and Recoveries received and applied in a Collection Period on the Business Day before the related Payment Date or, with satisfaction of the Rating Agency Condition, on the related Payment Date.

 

(c)           Reconciliation of Deposits.  If Ford Credit is the Servicer and for any Payment Date, the sum of (i) 20  -   Collections for the Collection Period, plus (ii) Administrative Reallocation Amounts for the Payment Date, exceeds the amounts deposited under Section 4.3(b)

 

8

 

for the Collection Period, Ford Credit will deposit an amount equal to the excess into the Collection Account on the Business Day before the Payment Date or, with satisfaction of the Rating Agency Condition, on the Payment Date.  If, for any Payment Date, the amounts deposited under Section 4.3(b) for the Collection Period exceed the sum of (i) 20  -   Collections for the Collection Period, plus (ii) Administrative Reallocation Amounts for the Payment Date, the Indenture Trustee will pay to Ford Credit an amount equal to the excess within two Business Days of Ford Credit’s direction, but no later than the Payment Date.  If requested by the Indenture Trustee, Ford Credit will provide reasonable supporting details for its calculation of the amounts to be deposited or paid under this Section 4.3(c).

 

(d)           Net Deposits.  Ford Credit may make the deposits and payments required by Section 4.3(b) net of Reference Pool Servicing Fees to be paid to Ford Credit for the Collection Period[, Advance Reimbursement Amounts the Servicer is permitted to retain under Section 4.4(b)] and amounts the Servicer is permitted to retain or be reimbursed for under Section 3.10.  The Servicer will account for all deposits and payments in the Monthly Investor Report as if the amounts were deposited and/or paid separately.

 

(e)           No Segregation.  Pending deposit in the Exchange Note Collection Account, the Servicer is not required to segregate 20  -   Collections or Payaheads from its own funds.

 

Section 4.4.           [Advances].

 

(a)           [Advances by Servicer.  The Servicer may, at its option, make an advance for each Active Lease other than an Advance Payment Plan Lease and each Collection Period if the Base Payment exceeds the sum of (i) Active Lease Proceeds (which may be positive or negative) plus (ii) the Payahead Draw, by depositing the amount of the excess (equal to the Active Lease Advance) in the Exchange Note Collection Account on the Business Day before the related Payment Date or, with satisfaction of the Rating Agency Condition, on that Payment Date.  However, the Servicer will only make Active Lease Advances on a Lease if the Servicer, in its sole discretion, determines that the advances will be recoverable from subsequent 20  -   Collections (whether relating to the Lease and Leased Vehicle or another Lease or Leased Vehicle) under Section 4.3(b).

 

(b)           Reimbursement for Outstanding Advances.  During each Collection Period, the Servicer will be reimbursed for any outstanding Advance Balance on a Lease for the prior Collection Period (or, for the first Collection Period, as of the Cutoff Date) by retaining the following amounts (the “Advance Reimbursement Amount”) in the following order of priority:

 

(i)           first, if the Lease is an Active Lease in the Collection Period, an amount equal to the lesser of (A) the sum of (1) Active Lease Proceeds, plus (2) the Administrative Reallocation Amount, if any, minus (3) the Base Payment, in each case for the Lease and the Collection Period and (B) the Advance Balance;

 

(ii)          second, if the Lease is a Terminating Lease or a Closed Lease in the Collection Period, an amount equal to the lesser of (A) the sum of (1) the Terminating Lease Proceeds, plus (2) the Closed Lease Proceeds, plus (3) the Administrative

 

9

 

Reallocation Amount, if any, in each case for the Lease and the Collection Period and (B) the Advance Balance; and

 

(iii)         third, on and after the Collection Period that includes the Closed Date for the Lease, an amount equal to the lesser of (A) the sum of Active Lease Proceeds, Terminating Lease Proceeds, Closed Lease Proceeds and Administrative Reallocation Amounts (in each case not relating to the Lease) for the Collection Period and (B) the excess, if any, of (1) the Advance Balance over (2) the amount retained by the Servicer under Section 4.3(b)(ii) for the current Collection Period.

 

(c)           Direction for Reimbursement.  The Servicer may direct the Indenture Trustee, if the Notes are Outstanding, and then, the Collateral Agent, to withdraw from the Exchange Note Collection Account and pay to the Servicer any amounts the Servicer is entitled to retain under this Section 4.3(c) if those amounts have been deposited in the Exchange Note Collection Account.]

 

Section 4.5.           [Payment of Advances].  [If a successor Servicer is appointed under the Servicing Agreement, the predecessor Servicer will be entitled to be reimbursed for the Advance Balances outstanding on the date of resignation or termination of the predecessor Servicer.  Advance Reimbursement Amount for a Lease will be applied (a) first, to the Advance Balances outstanding on the date of resignation or termination of the predecessor Servicer and (b) second, to the remaining portion, if any, of the Advance Balances.]

 

Section 4.6.           Reserve Account Draw Amount.  At least two Business Days before each Payment Date, the Servicer will calculate the Reserve Account Draw Amount for the Payment Date and will direct the Indenture Trustee to withdraw the amount, if any, from the Reserve Account and deposit it in the Exchange Note Collection Account.

 

Section 4.7.           Direction to Indenture Trustee for Distributions.  On or before two Business Days before a Payment Date, the Servicer will direct the Indenture Trustee (based on the most recent Monthly Investor Report) to make the withdrawals, deposits, distributions and payments required to be made on the Payment Date under Section 5.1 of the Exchange Note Supplement and Section 8.2 of the Indenture and Section 4.3(c) of this Agreement.

 

ARTICLE V
 SERVICER

 

Section 5.1.           Servicer’s Representations and Warranties.  The Servicer has made the representations and warranties in Section 6.1 of the Servicing Agreement, which representations and warranties (i) the Lender, the Titling Companies and the Collateral Agent have relied on, and the Depositor and the Issuer will rely on in acquiring the 20  -   Exchange Note, and (ii) are remade as of the Exchange Note Issuance Date and will survive the sale and assignment of the 20  -   Exchange Note by Ford Credit to the Depositor and by the Depositor to the Issuer and the pledge of the 20  -   Exchange Note by the Issuer to the Indenture Trustee under the Indenture.

 

Section 5.2.           Indemnities of Servicer.

 

(a)           Indemnification under Servicing Agreement.  In addition to the Indemnified Persons listed in Section 6.3(a) of the Servicing Agreement, the Servicer will also indemnify the

 

10

 

Issuer, the Owner Trustee and the Indenture Trustee as “Indemnified Persons” under those Sections.

 

(b)           Indemnification for Servicing.  The Servicer will indemnify each Titling Company, each Holding Company, the Administrative Agent, the Collateral Agent, the Lender, the Issuer, the Owner Trustee, the Indenture Trustee, the 20  -   Exchange Noteholder and their officers, directors, employees and agents (each, an “Indemnified Person”) for all fees, expenses, losses, damages and liabilities resulting from the Servicer’s (including in its capacity as Custodian) willful misconduct, bad faith or negligence in performing its obligations under the Transaction Documents (including the fees and expenses of defending themselves against any loss, damage or liability and any fees and expenses incurred in connection with any proceedings brought by the Indemnified Person to enforce the Servicer’s indemnification obligations).

 

(c)           Proceedings.  If an Indemnified Person receives notice of a Proceeding against it, the Indemnified Person will, if a claim will be made against the Servicer under this Section 5.2, promptly notify the Servicer of the Proceeding.  The Servicer may participate in and assume the defense and settlement of a Proceeding at its expense.  If the Servicer notifies the Indemnified Person of its intention to assume the defense of the Proceeding with counsel reasonably satisfactory to the Indemnified Person, and so long as the Servicer assumes the defense of the Proceeding in a manner reasonably satisfactory to the Indemnified Person, the Servicer will not be liable for fees and expenses of counsel to the Indemnified Person unless there is a conflict between the interests of the Servicer and the Indemnified Person.  If there is a conflict, the Servicer will pay the reasonable fees and expenses of separate counsel to the Indemnified Person.  No settlement of a Proceeding may be made without the approval of the Servicer and the Indemnified Person, which approval will not be unreasonably withheld.

 

(d)           Survival of Obligations.  The Servicer’s obligations under this Section 5.2, for the period it was the Servicer, will survive the Servicer’s resignation or termination, the termination of this Supplement, the resignation or removal of the Owner Trustee or the Indenture Trustee and the termination of the Issuer.

 

(e)           Repayment.  If the Servicer makes a payment to an Indemnified Person under this Section 5.2 and the Indemnified Person later collects from others any amounts for which the payment was made, the Indemnified Person will promptly repay those amounts to the Servicer.

 

Section 5.3.           Reference Pool Servicer Termination Events.  The Reference Pool Servicer Termination Events applicable to the 20  -   Reference Pool are as stated in Section 7.3(a) of the Servicing Agreement.  [There are no additional Reference Pool Servicer Termination Events for the 20  -   Reference Pool.]

 

Section 5.4.           Servicer May Own Exchange Note and Notes.  The Servicer and any Affiliate of the Servicer may, in its individual or other capacity, become the owner or pledgee of the 20  -   Exchange Note and the Notes with the same rights as it would have if it were not the Servicer or an Affiliate of the Servicer, except as otherwise stated in any Transaction Document.

 

11

 

ARTICLE VI
 TERMINATION

 

Section 6.1.           Clean-Up Call.

 

(a)           Servicer Option.  If the aggregate Note Balance on the last day of a Collection Period is equal to or less than [10]% of the initial aggregate Note Balance, the Servicer will have the option to purchase the 20  -   Exchange Note in whole but not in part on the related Payment Date.  The Servicer may exercise its option to purchase the 20  -   Exchange Note by (i) notifying the Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee and the Rating Agencies at least ten days before the related Payment Date (which Payment Date will be the Exchange Note Purchase Date) and (ii) depositing in the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price on the Business Day before the Exchange Note Purchase Date (or, with satisfaction of the Rating Agency Condition, on the Exchange Note Purchase Date).  However, the Servicer may not exercise its option to purchase the 20  -   Exchange Note unless the sum of (i) the Exchange Note Purchase Price and (ii) the amount in the Exchange Note Collection Account for the related Collection Period, is greater than or equal to the sum of (A) the Note Redemption Price for the Notes and (B) all other amounts payable by the Issuer under the Transaction Documents.

 

(b)           Cancellation and Reallocation.  If the Servicer and the Lender under the Credit and Security Agreement are the same entity, on purchase of the 20  -   Exchange Note by the Servicer under Section 6.1(a), the Servicer may, on notice to the Borrowers, the Lender, the Collateral Agent and the Administrative Agent, direct that the 20  -   Exchange Note be cancelled by the Lender and the Leases and related Leased Vehicles be reallocated to the Revolving Facility Pool by the Collateral Agent.

 

Section 6.2.           Termination of Servicing Supplement.  This Supplement will terminate when the Servicing Agreement terminates, and may also be terminated by the Servicer or the Titling Companies at any time after the payment in full or cancellation of the 20  -   Exchange Note.

 

ARTICLE VII
 OTHER AGREEMENTS

 

Section 7.1.           No Petition.  Each party agrees that, before the date that is one year and one day (or, if longer, any applicable preference period) after the payment in full of (a) all Secured Obligations, including all Exchange Notes, and any other Securities, (b) all securities issued by the Depositor or by a trust for which the Depositor was a depositor or (c) the Notes, it will not start or pursue against, or join any other Person in starting or pursuing against, (i) either Titling Company or either Holding Company, (ii) the Depositor or (iii) the Issuer, respectively, any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings or other proceedings under any bankruptcy or similar law.  This Section 7.1 will survive the termination of this Supplement.

 

Section 7.2.           Conflict with Servicing Agreement.  If there is a conflict between this Supplement and the Servicing Agreement, this Supplement will govern for the 20  -   Reference Pool only.

 

12

 

ARTICLE VIII
 MISCELLANEOUS

 

Section 8.1.           Amendments.  This Supplement may be amended according to Section 9.1 of the Servicing Agreement.  Promptly on the execution of an amendment to this Supplement or the Servicing Agreement, (a) the Servicer will deliver a copy of the amendment to the Issuer, the Indenture Trustee, the Administrator and the Rating Agencies and (b) the Indenture Trustee will notify each Noteholder of the substance of the amendment.

 

Section 8.2.           Benefit of Agreement; Third-Party Beneficiaries.  The Servicing Agreement and this Supplement are for the benefit of and will be binding on the parties and their permitted successors and assigns.  The 20  -   Exchange Noteholder, the Owner Trustee and the Indenture Trustee for the benefit of the Secured Parties will be third-party beneficiaries of this Supplement and may enforce this Supplement against the Servicer.  No other Person will have any right or obligation under this Supplement.

 

Section 8.3.           GOVERNING LAW.  THIS SUPPLEMENT WILL BE GOVERNED BY AND CONSTRUED ACCORDING TO THE LAWS OF THE STATE OF NEW YORK.

 

Section 8.4.           Severability.  If a part of this Supplement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining Supplement and will in no way affect the validity, legality or enforceability of the remaining Supplement.

 

Section 8.5.           Headings.  The headings in this Supplement are included for convenience and will not affect the meaning or interpretation of this Supplement.

 

Section 8.6.           Counterparts.  This Supplement may be executed in multiple counterparts.  Each counterpart will be an original and the counterparts will together be one document.

 

[Remainder of Page Left Blank]

 

13

 

EXECUTED BY:

 

	
 
    	
FORD   MOTOR CREDIT COMPANY LLC,
    
	
 
    	
 
    	
as   Servicer for the Collateral Specified Interests and the   20  -   Reference Pool and as Lender
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CAB   EAST LLC,
    
	
 
    	
 
    	
acting   for its series of limited liability company interests designated as the   “Collateral Specified Interest,” as a Titling Company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
CAB   WEST LLC,
    
	
 
    	
 
    	
acting   for its series of limited liability company interests designated as the   “Collateral Specified Interest,” as a Titling Company
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
HTD   LEASING LLC,
    
	
 
    	
 
    	
as   Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to Servicing Supplement]

 

 

Exhibit A

 

Exhibit A

 

Form of Monthly Investor Report

 

Ford Credit Auto Lease Trust 20   - 
 Monthly Investor Report

 

Payment Date
 Collection Period
 Transaction Month

 

Additional information about the structure, cashflows, defined terms and parties for this transaction can be found in the prospectus, available on the SEC website (http://www.sec.gov) under the registration number 333-       and at http://www.fordcredit.com/institutionalinvestments/index.jhtml.

 

I. SUMMARY

 

	
 
    	
 
    	
Initial Balance
    	
 
    	
Beginning of
   Period Balance
    	
 
    	
End of Period
   Balance
    	
 
    	
End of Period
   Factor
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20  -    Reference Pool Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Note   Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Overcollateralization
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20  -    Exchange Note Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20  -    Exchange Note Overcollateralization
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
Overcollateralization
    	
 
    	
Beginning of
   Period
    	
 
    	
End of Period
    	
 
    
	
20  -    Reference Pool Balance as a % of Total Note Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20  -    Reference Pool Balance as a % of 20  -  Exchange Note Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
Note Interest Rate
    	
 
    	
Initial Balance
    	
 
    	
Beginning of
   Period Balance
    	
 
    	
End of Period
   Balance
    	
 
    	
End of Period
   Factor
    	
 
    
	
Class A-1   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2[a]   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Class A-2b   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class C   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
Principal Payments
    	
 
    	
Interest Payments
    	
 
    	
Total Payments
    	
 
    
	
 
    	
 
    	
Actual
    	
 
    	
per $1000 Face
    	
 
    	
Actual
    	
 
    	
per $1000 Face
    	
 
    	
Actual
    	
 
    	
per $1000 Face
    	
 
    
	
Class A-1   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2[a]   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Class A-2b   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class C   Notes
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

EA-1

 

II. POOL INFORMATION

 

	
 
    	
 
    	
Lease Balance
    	
 
    	
Securitization Value
    	
 
    	
Residual Portion of
   Securitization Value
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20  -    Reference Pool Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beginning of   Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Change
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Residual Portion of Securitization Value as % of Securitization Value at end of period

 

	
 
    	
 
    	
At Cutoff Date
    	
 
    	
Terminations in
   Prior Periods
    	
 
    	
Beginning of
   Period
    	
 
    	
Terminations in
   Current Period
    	
 
    	
End of Period
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Number of Leases
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Weighted Average   Remaining to Maturity in Months
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Beginning of Period
    	
 
    	
End of Period
    	
 
    

 

	
 
    	
 
    	
Number of Leases
    	
 
    	
Securitization Value
    	
 
    	
% of End of Period
   Reference Pool
   Balance
    	
 
    
	
Delinquent Leases
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
31 – 60 Days   Delinquent
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
61 – 90 Days   Delinquent
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
91 –120 Days   Delinquent
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Over 120 Days   Delinquent
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Delinquent   Leases
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Delinquency   Trigger: [Y/N]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prepayment Speed
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    	
 
    	
 
    

 

III.  EXCHANGE NOTE COLLECTIONS AND DISTRIBUTIONS

 

	
Collections
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Rent Payments
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Payoffs
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Other   (including extension fees, excess charges, etc.)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Payaheads
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Payahead   Draws
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Advances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Advance   Reimbursement Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Net   Auction Proceeds
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Recoveries
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Collections
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Administrative   Reallocation Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reserve Account   Balance Beginning of Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Collections Plus Administrative Reallocation Amounts and Reserve Account   Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Exchange Note Distributions

 

	
 
    	
 
    	
Amount Due
    	
 
    	
Amount Paid
    	
 
    	
Remaining
   Available Funds
    	
 
    	
Shortfall
    	
 
    
	
Ref Pool   Servicing Fee and Adv Reimbursement
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20-  -    Exchange Note Interest Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shortfall   Payment (to cover Notes)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reserve Account   Deposit
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20-  -    Exchange Note Principal Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shared Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Revolving   Facility Pool Remaining Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

EA-2

 

IV. AVAILABLE FUNDS AND DISTRIBUTIONS

 

	
Available Funds
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20-  -    Exchange Note Interest Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
20-  -    Exchange Note Principal Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Shortfall   Payment (to cover Notes)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

	
 
    	
 
    	
Amount Due
    	
 
    	
Amount Paid
    	
 
    	
Remaining
   Available Funds
    	
 
    	
Shortfall
    	
 
    
	
ABS Note Distributions
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Trustee and   Other Fees/Expenses
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Administration   Fee
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-1   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-2[a]   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
[Class A-2b   Interest]
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-3   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class A-4   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Class A Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
First Priority   Principal Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class B   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second Priority   Principal Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Class C   Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Regular   Principal Payment
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reserve Account   Deposit
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Additional   Trustee and Other Fees/Expenses
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Remaining Funds   to Holder of Residual Interest
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

V. RECONCILIATION OF ADVANCES AND PAYAHEADS

 

	
Advances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beginning of   Period Advance Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Additional   Advances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Advance   of Reimbursement Amounts
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
End of Period   Advance Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Payaheads
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Beginning of   Period Payahead Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Additional   Payaheads
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Payahead   Draws
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
End of Period   Payahead Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

VI.  RESERVE ACCOUNT

 

	
Beginning of Period Reserve Account Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Reserve Account Draw
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus:    Reserve Deposit from Exchange Note Distributions
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Reserve Balance after Deposit from Exchange Note
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Reserve Deposit from Note Distributions
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
End of Period Reserve Account Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo:    Required Reserve Amount
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

VII. OVERCOLLATERALIZATION INFORMATION

 

	
Total Overcollateralization Amount
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Actual   Overcollateralization Amount (EOP Pool Balance — EOP Note Balance)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

EA-3

 

VIII. LEASE TERMINATIONS

 

	
 
    	
 
    	
Number of Leases
    	
 
    	
Securitization Value
    	
 
    
	
 
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    
	
Retained   Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Early   Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Standard   Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Retained
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Returned   Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Early   Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Standard   Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total Returned
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Charged Off   /Repossessed Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Removals by   Servicer and Other
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo: 1)  Removals of Leases Terminated in Prior   Periods
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    
	
2)  Number of   Lease Scheduled to Terminate
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Return Rate (Returned/Total Terminations)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Early Termination Rate (Early Terminations /Total Terminations
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

Note:  An Early Termination is a lease that terminates more than three months before the month in which it is scheduled to terminate.

 

IX. GAIN (LOSS) CALCULATIONS

 

	
 
    	
 
    	
Number of Leases
    	
 
    	
Gain (Loss)
    	
 
    
	
 
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    	
Current Period
    	
 
    	
Cumulative
    	
 
    
	
Gain   (Loss) on Retained Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Customer   Payments
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Payahead   draws
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus:   Unreimbursed Advances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus:   Securitization Value of Retained Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gain (Loss) Per   Retained Vehicle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gain   (Loss) on Returned Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Customer   Payments
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Net   Auction Proceeds
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Payahead   Draws
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus:   Unreimbursed Advances
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus:   Securitization Value of Returned Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Gain (Loss) Per   Returned Vehicle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit   Gain (Loss) Charged Off/Repossessed Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Credit Gain   (Loss) Per Charged Off/Repossessed Vehicle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Recoveries
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total   Gain (Loss)- - Net of Recoveries
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Average Gain   (Loss) on all Retained, Returned, and Repossessed Vehicles 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Removals   by Servicer and Other  
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Note: There is   no Gain or Loss on Removals
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Memo:   Residual Gain (Loss) on Returned Vehicles
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Net Auction   Proceeds
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
plus: Excess   Wear and Use and Excess Mileage Assessed
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
minus: Residual   Portion of Securitization Value
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Total
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Residual Gain   (Loss) Per Returned Vehicle
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

EA-4

 

	
Prior and Current Collection Periods Average Gain (Loss): 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Percent
    	
 
    
	
Ratio   of Total Gain (Loss) to the Average Pool Balance (annualized)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Third   Prior Collection Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Second   Prior Collection Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Prior   Collection Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Current   Collection Period
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Four Month Average (Current and Prior Three Collection   Periods)
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    
	
Ratio of Cumulative Total Gain (Loss) for all Collection   Periods to Initial Pool Balance
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

X. CREDIT RISK RETENTION INFORMATION

 

[There were no material changes in the Depositor’s retained interest in the transaction.]

 

[Describe any material change in the Depositor’s retained interest in the transaction.]

 

[To be added for offerings after December 24, 2016:]

 

The fair value of the Notes and the Residual Interest included in the Prospectus for the Notes, dated     , 20   under the heading “Credit Risk Retention” is summarized below.  [The fair value of the Notes and the Residual Interest on the Closing Date did not change from the amounts included in the Prospectus, and there were no changes in methodology or inputs and assumptions.]

 

	
 
    	
 
    	
Fair Value
   (Mils.)
    	
 
    	
Fair Value
   (%)
    	
 
    
	
Class A   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Class B   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Class C   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Residual   Interest
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Total
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    

 

[The fair value of the Notes and the Residual Interest on the Closing Date is summarized below.  The differences in the fair values result from [describe changes in methodology or inputs and assumptions]].

 

	
 
    	
 
    	
Fair Value
   (Mils.)
    	
 
    	
Fair Value
   (%)
    	
 
    
	
Class A   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Class B   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Class C   notes
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Residual   Interest
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    
	
Total
    	
 
    	
$
    	
 
    	
 
    	
 
    	
%
    

 

EA-5

 

XI.  REALLOCATION DEMAND ACTIVITY (RULE 15Ga-1)

 

(1)  Reallocation Activity

 

[No activity to report]

 

	
Name of
   Issuing
   Entity
    	
 
    	
Check if
   Registered
    	
 
    	
Name of
   Originator
    	
 
    	
Total Assets in ABS
   by Originator
    	
 
    	
Assets That Were
   Subject of Demand
    	
 
    	
Assets That Were
   Reallocated or
   Replaced
    	
 
    	
Assets Pending
   Reallocation or
   Replacement
   (within cure period)
    	
 
    	
Demand in Dispute
    	
 
    	
Demand Withdrawn
    	
 
    	
Demand Rejected
    	
 
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    	
(#)
    	
 
    	
($)
    	
 
    	
(% of
   pool
   balance)
    	
 
    
	
Retail Auto Leases:

 

Ford Credit Auto Lease Trust   20  - 

 

CIK#
    	
 
    	
 
    	
 
    	
Ford   Motor Credit Company LLC
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    

 

(2)  Most Recent Form ABS-15G

 

Filed by:  Ford Motor Credit Company LLC

 

CIK#:  0000038009

 

Date:   February   , 20

 

EA-6

 

SERVICER CERTIFICATION

 

This report is accurate in all material respects.

 

Ford Motor Credit Company LLC

 

	
/s/
    	
 
    
	
[Assistant   Treasurer]
    	
 
    

 

EA-7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00253-of-00352.parquet"}]]