Document:

EX-10.8

Exhibit 10.8

 

 

VW CREDIT LEASING, LTD.,

[U.S. BANK NATIONAL ASSOCIATION],

Not in its Individual Capacity

but Solely as SUBI Trustee,

and

VW CREDIT, INC.,

as Servicer

TRANSACTION SUBI SUPPLEMENT 20[ ]-[ ] TO

SERVICING AGREEMENT

Dated as of [  ], [  ]

 

 

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	ARTICLE V 
	DEFINITIONS
	 	 	2	 
	Section 5.1

	 	Definitions
	 	 	2	 
	 
	 	 	 	 	 	 
	ARTICLE VI 
	REPRESENTATIONS AND WARRANTIES OF SERVICER
	 	 	3	 
	Section 6.1

	 	Existence and Power
	 	 	3	 
	Section 6.2

	 	Authorization and No Contravention
	 	 	3	 
	Section 6.3

	 	No Consent Required
	 	 	3	 
	Section 6.4

	 	Binding Effect
	 	 	3	 
	Section 6.5

	 	No Proceedings
	 	 	3	 
	 
	 	 	 	 	 	 
	ARTICLE VII

	SPECIFIC REQUIREMENTS FOR ADMINISTRATION AND SERVICING OF THE
TRANSACTION SUBI PORTFOLIO
	 	 	4	 
	Section 7.1

	 	Appointment of Servicer
	 	 	4	 
	Section 7.2

	 	Servicer Bound by Servicing Agreement
	 	 	4	 
	Section 7.3

	 	Application of Proceeds
	 	 	5	 
	Section 7.4

	 	Servicer Certificate
	 	 	5	 
	Section 7.5

	 	Servicer Fee
	 	 	6	 
	Section 7.6

	 	Insurance Lapses; Repairs
	 	 	6	 
	Section 7.7

	 	Licensing of Origination Trust
	 	 	6	 
	Section 7.8

	 	Servicer Advances
	 	 	6	 
	Section 7.9

	 	Payment of Fees and Expenses
	 	 	6	 
	Section 7.10

	 	Annual Independent Public Accountants’ Servicing Report
	 	 	6	 
	Section 7.11

	 	Annual Officer’s Certificate; Annual ERISA Certification
	 	 	7	 
	Section 7.12

	 	Postmaturity Term Extension
	 	 	7	 
	Section 7.13

	 	Insurance Policies; Additional Insureds
	 	 	8	 
	Section 7.14

	 	Security Deposits
	 	 	8	 
	Section 7.15

	 	Pull-Ahead and Other Early Termination Marketing Programs
	 	 	8	 
	Section 7.16

	 	1934 Act Filings
	 	 	8	 
	 
	 	 	 	 	 	 
	ARTICLE VIII

	TERMINATION OF SERVICER
	 	 	8	 
	Section 8.1

	 	Termination of Servicer as to Transaction SUBI Portfolio
	 	 	8	 
	Section 8.2

	 	No Effect on Other Parties
	 	 	9	 
	 
	 	 	 	 	 	 
	ARTICLE IX

	MISCELLANEOUS
	 	 	10	 
	Section 9.1

	 	Amendment
	 	 	10	 

-i-

 

TABLE OF CONTENTS

(continued)

	 	 	 	 	 	 	 
	 	 	 	 	Page	 
	 
	 	 	 	 	 	 
	Section 9.2

	 	Governing Law
	 	 	11	 
	Section 9.3

	 	Notices
	 	 	11	 
	Section 9.4

	 	Third-Party Beneficiaries
	 	 	11	 
	Section 9.5

	 	Severability
	 	 	11	 
	Section 9.6

	 	Binding Effect
	 	 	11	 
	Section 9.7

	 	Article and Section Headings
	 	 	11	 
	Section 9.8

	 	Execution in Counterparts
	 	 	12	 
	Section 9.9

	 	Further Assurances
	 	 	12	 
	Section 9.10

	 	Each SUBI Separate; Assignees of SUBI
	 	 	12	 
	Section 9.11

	 	No Petition
	 	 	12	 
	Section 9.12

	 	Submission to Jurisdiction; Waiver of Jury Trial
	 	 	13	 
	Section 9.13

	 	Limitation of Liability of U.S. Bank
	 	 	13	 
	Section 9.14

	 	Information Requests
	 	 	13	 
	Section 9.15

	 	Regulation AB
	 	 	14	 

EXHIBIT A —  Form of Annual Officer’s Certificate

EXHIBIT B —  Form of Annual ERISA and Texas Margin Tax Certification

-ii-

 

TRANSACTION SUBI SUPPLEMENT 20[ ]-[ ] TO

SERVICING AGREEMENT

     THIS TRANSACTION SUBI SUPPLEMENT 20[ ]-[ ] TO SERVICING AGREEMENT (as amended, modified or
supplemented from time to time, the “Transaction SUBI Servicing Supplement”), dated as of [
], [ ], is among VW CREDIT LEASING, LTD., a Delaware statutory trust (the “Origination
Trust”), [U.S. BANK NATIONAL ASSOCIATION, a national banking association, as successor to U.S.
Bank Trust National Association], not in its individual capacity but solely as a SUBI Trustee
(hereinafter, together with its successors and assigns, the “SUBI Trustee”) of the
Origination Trust, and VW CREDIT, INC., a Delaware corporation (“VCI”), as Servicer (in
such capacity, the “Servicer”).

RECITALS

     A. VCI (in its capacity as settlor, the “Settlor”), Wilmington Trust Company, as
Delaware Trustee (the “Delaware Trustee”), and U.S. Bank National Association, as successor
to U.S. Bank Trust National Association, as Administrative Trustee and UTI Trustee (in such
capacity, together with any successor or permitted assign, the “Administrative Trustee” and
the “UTI Trustee”, respectively; collectively with the Delaware Trustee and the SUBI
Trustee, the “Origination Trustees”) have entered into that certain Trust Agreement dated
as of June 2, 1999 (as modified, supplemented or amended from time to time, the “Origination
Trust Agreement”) pursuant to which the Settlor formed the Origination Trust for the purpose of
acting as agent and nominee owner of various Origination Trust Assets in accordance with the
Origination Trust Agreement.

     B. The Origination Trust and the Servicer also have entered into that certain Servicing
Agreement dated as of June 22, 1999, as amended and restated as of December 21, 2000 (as modified,
supplemented or amended from time to time, the “Servicing Agreement”), which provides,
among other things, for the servicing of the Origination Trust Assets by the Servicer.

     C. The Origination Trust Agreement contemplates that from time to time the UTI Trustee, on
behalf of the Origination Trust and at the direction of the Initial Beneficiary, will identify and
allocate on the Origination Trust’s books and records certain Origination Trust Assets within
separate SUBI Portfolios and create and issue to the Initial Beneficiary separate special units of
beneficial interest in the Origination Trust or “SUBIs”, the beneficiary or beneficiaries
of which will hold an exclusive 100% beneficial ownership interest in the related SUBI Portfolios,
all as set forth in the Origination Trust Agreement.

     D. Concurrently herewith, Volkswagen Auto Lease/Loan Underwritten Funding, LLC (the
“Transferor”) will purchase the Transaction SUBI and the Transaction SUBI Certificate from
VCI and the Issuer will purchase the Transaction SUBI Certificate from the Transferor. The Issuer
is expected to fund such purchase from proceeds of the issuance of the Notes and Certificates.

     E. Concurrently herewith, Volkswagen Auto Lease Trust 20[ ]-[ ], a Delaware statutory trust
(the “Issuer”), is entering into an asset-backed financing transaction pursuant to,

Transaction SUBI Servicing Supplement

 

 

among other agreements, an indenture (the “Indenture”) with [ ], as indenture trustee (the
“Indenture Trustee”), pursuant to which the Issuer will issue asset-backed notes and will
grant a security interest to the Indenture Trustee in certain of its assets.

     F. Concurrently herewith, the Initial Beneficiary, the UTI Trustee, the Administrative Trustee
and the SUBI Trustee are entering into that certain Transaction SUBI Supplement 20[ ]-[ ] to
Origination Trust Agreement (as amended, modified or supplemented from time to time, the
“Transaction SUBI Supplement”) to supplement the terms of the Origination Trust Agreement
(i) to cause the UTI Trustee to identify and allocate Origination Trust Assets to a particular SUBI
Portfolio (the “Transaction SUBI Portfolio”), which shall consist of Origination Trust
Assets which shall constitute SUBI Assets, and (ii) to create and issue to VCI a SUBI Certificate
(such SUBI Certificate, together with any replacements thereof, the “Transaction SUBI
Certificate”), that will evidence the entire beneficial ownership interest in the related SUBI
Portfolio (the “Transaction SUBI”) including the Transaction Vehicles, with the Origination
Trust continuing to hold record title to the Transaction Vehicles as agent and nominee for the
holder of the Transaction SUBI Certificate, and (iii) to set forth the terms and conditions
thereof.

     G. Concurrently herewith, the UTI Trustee, on behalf of the Origination Trust and at the
direction of the Initial Beneficiary, is issuing to VCI the Transaction SUBI Certificate,
representing all of the Initial Beneficiary’s right, title and interest in and to the Transaction
SUBI, and the right to realize on any property that may be included in the Transaction SUBI
Portfolio, and all proceeds thereof.

     H. The Origination Trust desires to retain the Servicer to provide certain services with
respect to the Transaction SUBI Portfolio beneficially owned by the Issuer, and the parties hereto
desire, pursuant to this Transaction SUBI Servicing Supplement, to supplement the terms of the
Servicing Agreement insofar as they apply to the Transaction SUBI Portfolio, providing for specific
servicing obligations that will benefit the Issuer, as holder of the Transaction SUBI Certificate,
and the Indenture Trustee, as the pledgee of the Transaction SUBI Certificate on behalf of the
Noteholders.

          NOW THEREFORE, in consideration of the premises and the mutual covenants herein contained and
in the Servicing Agreement, the parties hereto agree to the following supplemental obligations with
regard to the Transaction SUBI Portfolio:

ARTICLE V

DEFINITIONS 

     Section 5.1 Definitions . For all purposes of this Transaction SUBI Servicing
Supplement, except as otherwise expressly provided or unless the context otherwise requires, (a)
unless otherwise defined herein, all capitalized terms used herein shall have the meanings
attributed to them (i) in Appendix A of the Indenture, (ii) if not defined therein, by the
Servicing Agreement, (iii) if not defined therein, by the Origination Trust Agreement, or (iv) if
not defined therein, by the Transaction SUBI Supplement, (b) the capitalized terms defined in this
Transaction SUBI Servicing Supplement have the meanings assigned to them in this Transaction SUBI
Servicing Supplement and include (i) all genders and (ii) the plural as well as the singular,

2

 

(c) all references to words such as “herein”, “hereof” and the like shall refer to this Transaction
SUBI Servicing Supplement as a whole and not to any particular article or section within this
Transaction SUBI Servicing Supplement, (d) the term “include” and all variations thereon shall mean
“include without limitation”, and (e) the term “or” shall include “and/or”.

ARTICLE VI

REPRESENTATIONS AND WARRANTIES OF SERVICER 

     The Servicer represents and warrants to the Transferor, the Issuer and the Indenture Trustee
on behalf of the Noteholders as follows:

     Section 6.1 Existence and Power. The Servicer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware and has all power and
authority required to carry on its business as it is now conducted. The Servicer has obtained all
necessary licenses and approvals in all jurisdictions where the failure to do so would materially
and adversely affect the business, properties, financial condition or results of operations of the
Servicer, taken as a whole.

     Section 6.2 Authorization and No Contravention. The execution, delivery and
performance by the Servicer of each Transaction Document to which it is a party (i) have been duly
authorized by all necessary corporate action and (ii) do not violate or constitute a default under
(A) any applicable law, rule or regulation, (B) its organizational instruments or (C) any
agreement, contract, order or other instrument to which it is a party or its property is subject
and (iii) will not result in any Adverse Claim on any Transaction Unit or Collection or give cause
for the acceleration of any indebtedness of the Servicer.

     Section 6.3 No Consent Required. No approval, authorization or other action by, or
filing with, any Governmental Authority is required in connection with the execution, delivery and
performance by the Servicer of any Transaction Document, other than UCC filings and other than
approvals and authorizations that have previously been obtained and filings which have previously
been made.

     Section 6.4 Binding Effect. Each Transaction Document to which the Servicer is a
party constitutes the legal, valid and binding obligation of the Servicer enforceable against the
Servicer in accordance with its terms, except as limited by bankruptcy, insolvency, or other
similar laws of general application relating to or affecting the enforcement of creditors’ rights
generally and subject to general principles of equity.

     Section 6.5 No Proceedings. There is no action, suit, Proceeding or investigation
pending or, to the knowledge of the Servicer, threatened against the Servicer which, either in any
one instance or in the aggregate, would result in any material adverse change in the business,
operations, financial condition, properties or assets of the Servicer, or in any material
impairment of the right or ability of the Servicer to carry on its business substantially as now
conducted, or in any material liability on the part of the Servicer, or which would render invalid
the Servicing Agreement, this Transaction SUBI Servicing Supplement or the Transaction Units or the
obligations of the Servicer contemplated herein, or which would materially impair the ability of

3

 

the Servicer to perform under the terms of this Transaction SUBI Servicing Supplement or any
other Transaction Document.

ARTICLE VII

SPECIFIC REQUIREMENTS FOR

ADMINISTRATION AND SERVICING OF THE

TRANSACTION SUBI PORTFOLIO 

     Section 7.1 Appointment of Servicer.

          (a) The Servicer shall manage, service and administer the Transaction SUBI Assets, at its own
expense and for the benefit of each holder and pledgee of the Transaction SUBI, and shall make
collections on the Transaction Units in accordance with its Customary Servicing Practices in effect
from time to time, using the same degree of skill and attention that the Servicer exercises with
respect to all comparable retail automotive leases that it services for itself or others.

          (b) The Servicer may delegate its duties and obligations as Servicer in accordance with
Section 2.10 of the Servicing Agreement.

          (c) The Servicer is hereby authorized to commence, in its own name or in the name of the
Origination Trust, a legal Proceeding (including a bankruptcy Proceeding) relating to or involving
a Transaction Unit, a Lessee or a Leased Vehicle. If the Servicer shall commence a legal
proceeding to enforce a Transaction Unit, the Origination Trust shall thereupon be deemed to have
automatically assigned, solely for the purpose of collection, such Transaction Unit to the
Servicer. If in any enforcement suit or legal Proceeding it shall be held that the Servicer may
not enforce a Transaction Unit on the ground that it is not a real party in interest or a holder
entitled to enforce such Transaction Unit, the Issuer shall, at the Servicer’s expense and
direction, take steps to enforce such Transaction Unit, including bringing suit in its name.

          (d) The Servicer shall account for the Transaction SUBI Portfolio separately from any other
SUBI Portfolio.

     Section 7.2 Servicer Bound by Servicing Agreement.

          (a) The Servicer shall continue to be bound by all provisions of the Servicing Agreement with
respect to the Transaction Units allocated to the Transaction SUBI Portfolio, including the
provisions of Article II thereof relating to the administration and servicing of Leases;
and the provisions set forth herein shall operate either as additions to or modifications of the
existing obligations of the Servicer under the Servicing Agreement, as the context may require. In
the event of any conflict between the provisions of this Transaction SUBI Servicing Supplement and
the Servicing Agreement with respect to the Transaction SUBI, the provisions of this Transaction
SUBI Servicing Supplement shall prevail.

          (b) For purposes of determining the Servicer’s obligations with respect to the servicing of
the Transaction SUBI Portfolio under this Transaction SUBI Servicing Supplement, general references
in the Servicing Agreement to: (i) a SUBI Portfolio shall be deemed to refer more specifically to
the Transaction SUBI Portfolio; (ii) a SUBI Servicing Agreement

4

 

Supplement shall be deemed to refer more specifically to this Transaction SUBI Servicing
Supplement; and (iii) a SUBI Supplement shall be deemed to refer more specifically to the
Transaction SUBI Supplement.

     Section 7.3 Application of Proceeds.

          (a) Prior to the satisfaction and discharge of the Indenture with respect to the Collateral,
the Servicer shall deposit an amount equal to all Collections received in respect of the
Transaction SUBI during any Collection Period into the Collection Account on or prior to 11:00
a.m., New York City time, on the following Payment Date; provided, however, that if the Monthly
Remittance Condition is not satisfied, the Servicer shall deposit an amount equal to all
Collections into the Collection Account within two Business Days after identification (it being
understood that, with respect to Sales Proceeds, the Servicer shall be obligated to remit an amount
equal to Sales Proceeds into the Collection Account and shall not be obligated to remit the actual
Sales Proceeds but instead such actual Sales Proceeds shall be held by the Qualified Intermediary
or in a Qualified Intermediary Account which shall not constitute Collateral). The “Monthly
Remittance Condition” shall be deemed to be satisfied if (i) VCI is the Servicer, (ii) no
Servicer Replacement Event has occurred and is continuing, and (iii)(x) Volkswagen AG has a
short-term debt rating of at least “P-1” from Moody’s and “A-1” from Standard & Poor’s, (y) both
Moody’s and Standard & Poor’s are then rating a debt issuance of Volkswagen of America, Inc. or VCI
(and, in the case of VCI, such debt issuance is guaranteed by Volkswagen AG) and (z) VCI remains a
direct or indirect wholly-owned subsidiary of Volkswagen AG. Notwithstanding the foregoing, the
Servicer may remit Collections to the Collection Account on any other alternate remittance schedule
(but not later than the related Payment Date) if clause (a) of the definition of “rating Agency
Condition” is satisfied with respect to such alternative remittance schedule. Pending deposit into
the Collection Account, Collections may be used by the Servicer at its own risk and for its own
benefit and will not be segregated from its own funds.

          (b) After the satisfaction and discharge of the Indenture with respect to the Collateral, the
Servicer shall pay an amount equal to Collections in accordance with the instructions provided from
time to time by the holder of the Transaction SUBI Certificate.

          (c) Notwithstanding anything to the contrary contained in this Transaction SUBI Servicing
Supplement, for so long as the Monthly Remittance Condition has been satisfied, the Servicer shall
be permitted to deposit into the Collection Account only the net amount distributable to the
Issuer, as holder of the Transaction SUBI Certificate, on the Payment Date. The Servicer shall,
however, account for all Collections as if all of the deposits and distributions described herein
were made individually.

     Section 7.4 Servicer Certificate. On each Determination Date prior to the
satisfaction and discharge of the Indenture with respect to the Collateral, the Servicer shall
deliver to the Indenture Trustee, the Issuer, the Administrator and each Paying Agent a Servicer
Certificate reflecting information as of the close of business of the Servicer for the immediately
preceding Collection Period containing the information described in Section 8.3(a) of the
Indenture. At the sole option of the Servicer, each Servicer Certificate may be delivered in
electronic or hard copy format.

5

 

     Section 7.5 Servicer Fee. Notwithstanding anything to the contrary in Section 2.5
of the Servicing Agreement, on each Payment Date, the Issuer shall pay to the Servicer in
accordance with Section 8.4(a) of the Indenture the Servicing Fee for the immediately
preceding Collection Period as compensation for its services. In addition, the Servicer may retain
any Supplemental Servicing Fees.

     Section 7.6 Insurance Lapses; Repairs. The Servicer shall not be required to monitor
whether any Lessee has, and shall have no liability in the event that any Lessee fails to maintain
in full force and effect, a physical damage insurance policy covering any Transaction Unit or
naming the Origination Trust as loss payee. Without limiting the foregoing, in no event shall the
Servicer be obligated to perform or be liable for any repairs or maintenance with respect to any
Transaction Unit.

     Section 7.7 Licensing of Origination Trust. The Servicer shall cause the Origination
Trust to apply for and maintain at all times all licenses and permits necessary to carry on the
Origination Trust’s leasing business in each jurisdiction in which the Origination Trust operates,
except where the failure to have any license or permit would not materially and adversely affect
the business, properties, financial condition or results of operation of the Origination Trust,
taken as a whole.

     Section 7.8 Servicer Advances. On each Payment Date, the Servicer shall deposit into
the Collection Account prior to 11:00 a.m., New York City time, an advance in an amount equal to
the lesser of (a) any shortfall in the amounts available to make the payments in clauses (i)
through (iv) of Section 8.4(a) of the Indenture and (b) the aggregate scheduled monthly
lease payments due on Included Units but not received (or not received in full) during and prior to
the related Collection Period (an “Advance”); provided, however, that the Servicer will not
be obligated to make an Advance if the Servicer reasonably determines in its sole discretion that
such Advance is not likely to be repaid from future cash flows from the Transaction SUBI Portfolio.
No Advances will be made with respect to Defaulted Leases. Notwithstanding the foregoing,
following any replacement of VCI as Servicer pursuant to Section 8.1, the successor
Servicer shall not be required to make any Advances.

     Section 7.9 Payment of Fees and Expenses. The Servicer shall pay all expenses (other
than expenses described in the definition of Sales Proceeds) incurred in connection with the
administration and servicing of the Transaction SUBI and the Transaction Units, including, without
limitation, expenses incurred by it in connection with its activities hereunder, including fees and
disbursements of the SUBI Trustee, independent accountants, taxes imposed on the Servicer and any
SUBI Trustee indemnity claims. The Servicer shall pay any and all taxes levied or assessed upon
the Issuer or upon all or any part of the Trust Estate.

     Section 7.10 Annual Independent Public Accountants’ Servicing Report. For so long as
the Transferor is filing reports under the Exchange Act with respect to the Issuer, on or before
the 90th day following the end of each fiscal year of the Issuer (or, if such day is not a Business
Day, the next Business Day), beginning with the fiscal year ending [   ], the Servicer shall
cause a firm of independent registered public accountants (who may also render other services to
the Servicer, the Transferor or their respective Affiliates) to furnish to the Indenture Trustee,
the Servicer, the Transferor and each Rating Agency each attestation report on

6

 

assessments of compliance with the Servicing Criteria with respect to the Servicer or any
Affiliate thereof during the related fiscal year (or since the Closing Date, in the case of the
first such attestation report) delivered by such accountants pursuant to paragraph (c) of Rule
13a-18 or Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB. The certification
required by this paragraph may be replaced by any similar certification using other procedures or
attestation standards which are now or in the future in use by servicers of comparable assets or
which otherwise comply with any rule, regulation, “no action” letter or similar guidance
promulgated by the Commission.

     Section 7.11 Annual Officer’s Certificate; Annual ERISA Certification.

          (a) The Servicer will deliver to the Rating Agencies, the Issuer and the Indenture Trustee on
or before the 90th day following the end of the fiscal year of the Issuer (or, if such
day is not a Business Day, the next Business Day) beginning with the fiscal year ending [______],
[______], an Officers’ Certificate substantially in the form of Exhibit A providing such
information as is required under Item 1123 of Regulation AB.

          (b) The Servicer will deliver to the Rating Agencies, the Issuer and the Indenture Trustee on
or before the 120th day following the end of the fiscal year of the Issuer (or, if such
day is not a Business Day, the next Business Day) beginning with [______], [______], an
Officers’ Certificate substantially in the form of Exhibit B with respect to the ERISA
plans maintained or sponsored by the Servicer or any of its ERISA Affiliates and with respect to
filings and payments in connection with the Texas Margin Tax.

          (c) For so long as the Transferor is filing reports under the Exchange Act with respect to the
Issuer, the Servicer will deliver to the Issuer, on or before the 90th day following the
end of the fiscal year of the Issuer (or, if such day is not a Business Day, the next Business Day)
beginning with the fiscal year ending [______], [______], a report regarding the Servicer’s
assessment of compliance with the Servicing Criteria during the immediately preceding calendar year
(or since the Closing Date, in the case of the first such report) including disclosure of any
material instance of non-compliance identified by the Servicer, as required under paragraph (b) of
Rule 13a-18, Rule 15d-18 of the Exchange Act and Item 1122 of Regulation AB.

     Section 7.12 Postmaturity Term Extension. Consistent with its Customary Servicing
Practices, the Servicer may, in its discretion, grant a Postmaturity Term Extension with respect to
any Transaction Lease. If the Servicer grants a Postmaturity Term Extension with respect to a
Transaction Lease, then the Servicer shall direct the SUBI Trustee and the Servicer to reallocate
the Unit related to such Transaction Lease from the Transaction SUBI Portfolio to the UTI Portfolio
(if the Servicer is VCI) or to an Other SUBI designated by the Servicer (if the Servicer is not
VCI) on the Payment Date following the beginning of the Collection Period during which such
Postmaturity Term Extension was granted. In consideration for such reallocation, the Servicer
shall make a payment to the Issuer equal to the Securitization Value of such Unit as of the end of
the Collection Period preceding such Payment Date by depositing such amount into the Collection
Account prior to 11:00 a.m., New York City time, on such Payment Date.

7

 

     Section 7.13 Insurance Policies; Additional Insureds. The Servicer shall cause all
policies of insurance required to be maintained pursuant to Section 2.9 of the Servicing
Agreement to name the Transferor, the Issuer, the Owner Trustee and the Indenture Trustee as
additional insureds.

     Section 7.14 Security Deposits. In accordance with Section 2.4 of the
Servicing Agreement, on the Payment Date related to the Collection Period in which a Security
Deposit (as defined in the Servicing Agreement) becomes a Collection, the Servicer shall deposit
such amounts in the Collection Account.

     Section 7.15 Pull-Ahead and Other Early Termination Marketing Programs. The Servicer
may, in its discretion, with respect to any Included Unit, permit the Lessee under the related
Lease to terminate such Lease prior to its scheduled termination date as part of a “pull-ahead” [or
other marketing program]; provided, however, that such early termination shall not
be permitted unless all Pull-Ahead Amounts due and payable by the Lessee under such Lease on or
before the date of such Lessee’s election to terminate the Lease have been paid by or on behalf of
such Lessee and are deposited in the Collection Account within the time period thereafter stated in
Section 7.3 of this Transaction SUBI Servicing Supplement. Following such early
termination, the Servicer shall charge the related Lessee any applicable Excess Wear and Tear
Charges and Excess Mileage Charges in accordance with Customary Servicing Practices with respect to
Leases that are terminated early by the related Lessee in the absence of a “pull-ahead” or other
marketing program.

     Section 7.16 1934 Act Filings. The Origination Trust hereby authorizes the Servicer
to prepare, sign, certify and file on behalf of the Origination Trust any and all reports,
statements and information respecting the Origination Trust required to be filed or made pursuant
to the Exchange Act and the rules thereunder.

ARTICLE VIII

TERMINATION OF SERVICER 

     Section 8.1 Termination of Servicer as to Transaction SUBI Portfolio.

          (a) Upon the occurrence and continuation of any Servicer Replacement Event, the Servicer shall
provide to the Indenture Trustee, the Issuer, the Administrator and each Rating Agency prompt
notice specifying such Servicer Replacement Event, together with a description of its efforts to
perform its obligations. The Servicer may not resign except in accordance with Section
2.10(a) of the Servicing Agreement.

          (b) If a Servicer Replacement Event shall have occurred and be continuing, the SUBI Trustee on
behalf of the holder of the Transaction SUBI Certificate, shall, at the direction of the Required
Related Holders, by notice given to the Servicer, the Issuer, the Indenture Trustee, the
Administrator and each Rating Agency, terminate the rights and obligations of the Servicer under
this Transaction SUBI Servicing Supplement and the Servicing Agreement with respect to the
Transaction SUBI and the Included Units. In the event the Servicer is removed or resigns as
Servicer with respect to servicing the Transaction SUBI Assets, the Required Related Holders shall
appoint a successor Servicer. With respect to any Servicer

8

 

Replacement Event, the SUBI Trustee, acting on the direction of the Required Related Holders
may waive any default of the Servicer. For purposes of this Section, so long as the Lien of the
Indenture is in place, the “Required Related Holders” shall be deemed to be the Indenture
Trustee, acting at the direction of the Holders of not less than 66 2/3% of the Outstanding Notes
and thereafter, the Issuer, acting at the direction of the Majority Certificateholders.

          (c) If replaced, the Servicer agrees that it will use commercially reasonable efforts to
effect the orderly and efficient transfer of the servicing of the Transaction Units to a successor
Servicer.

          (d) Upon the effectiveness of the assumption by the successor Servicer of its duties pursuant
to this Section 8.1, the successor Servicer shall be the successor in all respects to the
Servicer in its capacity as Servicer under the Servicing Agreement with respect to the Transaction
SUBI Portfolio, and shall be subject to all the responsibilities, duties and liabilities relating
thereto, except with respect to the obligations of the predecessor Servicer that survive its
termination as Servicer as set forth in Section 8.1(e). No Servicer shall resign or be
relieved of its duties under the Servicing Agreement, as Servicer of the Transaction SUBI
Portfolio, until a newly appointed Servicer for the Transaction SUBI Portfolio shall have assumed
the responsibilities and obligations of the resigning or terminated Servicer under this Transaction
SUBI Servicing Supplement and provided in writing the information reasonably requested by the
Transferor to comply with its reporting obligations under the Exchange Act with respect to a
replacement Servicer. In the event of a replacement of VCI as Servicer, the Required Related
Holders shall cause the successor Servicer to agree to indemnify VCI against any losses,
liabilities, damages or expenses (including attorneys’ fees) as a result of the negligence or
willful misconduct of such successor Servicer. The predecessor Servicer shall be entitled to
receive reimbursement for any outstanding Advances made with respect to the Transaction Units to
the extent funds are available therefor in accordance with the Indenture.

          (e) No termination or resignation of the Servicer as to the Transaction SUBI Portfolio shall
affect the obligations of the Servicer pursuant to Section 2.7(c) of the Servicing
Agreement; provided that following the replacement of the Servicer pursuant to this Section
8.1, such Servicer shall have no duties, responsibilities or other obligations hereunder with
respect to matters arising after such replacement.

     Section 8.2 No Effect on Other Parties. Upon any termination of the rights and
powers of the Servicer with respect to the Transaction SUBI Portfolio pursuant to Section
8.1 hereof, or upon any appointment of a successor Servicer with respect to the Transaction
SUBI Portfolio, all the rights, powers, duties and obligations of the Origination Trustees, the UTI
Holder and the Settlor under the Origination Trust Agreement, the Servicing Agreement, the
Transaction SUBI Supplement, any other SUBI Supplement, any other SUBI Servicing Agreement
Supplement or any other Origination Trust Document shall remain unaffected by such termination or
appointment and shall remain in full force and effect thereafter, except as otherwise expressly
provided herein or therein.

9

 

ARTICLE IX

MISCELLANEOUS

     Section 9.1 Amendment.

          (a) Notwithstanding any provision of the Servicing Agreement, the Servicing Agreement, as
supplemented by this Transaction SUBI Servicing Supplement, to the extent that it deals solely with
the Transaction SUBI and the Transaction SUBI Portfolio, may be amended in accordance with this
Section 9.1.

          (b) Any term or provision of the Servicing Agreement or this Transaction SUBI Servicing
Supplement may be amended by the Servicer, without the consent of any other Person subject to
satisfaction of one of the following conditions: (i) the Servicer delivers an Officer’s Certificate
or an Opinion of Counsel to the Indenture Trustee to the effect that such amendment will not
materially and adversely affect the interests of the Noteholders or (ii) the Rating Agency
Condition is satisfied with respect to such amendment. Subject to clause (b) below, any
term or provision of this Agreement may be amended by the Transferor with the consent of
Noteholders evidencing not less than a majority of the Outstanding Note Amount, voting as a single
class. Notwithstanding the foregoing, any amendment that materially and adversely affects the
interests of the Origination Trustees, the Indenture Trustee or the Owner Trustee shall require the
prior written consent of the Persons whose interests are materially and adversely affected.

          (c) Notwithstanding anything herein to the contrary (including clause (d) below), no
amendment shall (i) reduce the interest rate or principal amount of any Note, or delay the Final
Scheduled Payment Date of any Note without the consent of the Holder of such Note, or (ii) reduce
the percentage of the Outstanding Note Amount, the Holders of which are required to consent to any
matter without the consent of the Holders of at least the percentage of the Outstanding Note Amount
which were required to consent to such matter before giving effect to such amendment.

          (d) Notwithstanding anything herein to the contrary, any term or provision of this Transaction
SUBI Servicing Supplement may be amended by the Servicer without the consent of any of the
Noteholders or any other Person to add, modify or eliminate any provisions as may be necessary or
advisable in order to comply with or obtain more favorable treatment under or with respect to any
law or regulation or any accounting rule or principle (whether now or in the future in effect); it
being a condition to any such amendment that the Rating Agency Condition shall have been satisfied.

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

          (f) Prior to the execution of any amendment to this Transaction SUBI Servicing Supplement, the
Servicer shall provide each Rating Agency with written notice of the substance of such amendment.
No later than 10 Business Days after the execution of any amendment to this Transaction SUBI
Servicing Supplement, the Servicer shall furnish a copy of

10

 

such amendment to each Rating Agency, the Origination Trustees, the Owner Trustee and the
Indenture Trustee.

          (g) Prior to the execution of any amendment to this Transaction SUBI Servicing Supplement, the
Owner Trustee, the Indenture Trustee and the Origination Trustees shall be entitled to receive and
conclusively rely upon an Opinion of Counsel stating that the execution of such amendment is
authorized or permitted by the Servicing Agreement or this Transaction SUBI Servicing Supplement
and that all conditions precedent to the execution and delivery of such amendment have been
satisfied.

     Section 9.2 Governing Law. THIS TRANSACTION SUBI SERVICING SUPPLEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK AND THE OBLIGATIONS,
RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN ACCORDANCE WITH SUCH LAWS
WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN SECTIONS 5-1401 AND 5-1402 OF
THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

     Section 9.3 Notices. All demands, notices and communications hereunder shall be in
writing and shall be delivered or mailed by registered or certified first-class United States mail,
postage prepaid, hand delivery, any prepaid courier service, or by telecopier, and addressed in
each case as set forth in Schedule II to the Indenture or at such other address as shall be
designated in a written notice to the other parties hereto. Delivery shall occur only upon receipt
or reported tender of such communication by an officer of the recipient entitled to receive such
notices located at the address of such recipient for notices hereunder.

     Section 9.4 Third-Party Beneficiaries. The Issuer and the Indenture Trustee, as
holder and pledgee, respectively, of the Transaction SUBI Certificate, and their respective
successors, permitted assigns and pledgees are third-party beneficiaries of the obligations of the
parties hereto and may directly enforce the performance of any of such obligations hereunder.

     Section 9.5 Severability. If one or more of the provisions of this Transaction SUBI
Servicing Supplement shall be for any reason whatever held invalid or unenforceable, such
provisions shall be deemed severable from the remaining covenants, agreements and provisions of
this Transaction SUBI Servicing Supplement, and such invalidity or unenforceability shall in no way
affect the validity or enforceability of such remaining covenants, agreements and provisions, or
the rights of any parties hereto. To the extent permitted by law, the parties hereto waive any
provision of law that renders any provision of this Transaction SUBI Servicing Supplement invalid
or unenforceable in any respect.

     Section 9.6 Binding Effect. The provisions of the Servicing Agreement and this
Transaction SUBI Servicing Supplement, insofar as they relate to the Transaction SUBI Portfolio,
shall be binding upon and inure to the benefit of the respective successors and permitted assigns
of the parties hereto.

     Section 9.7 Article and Section Headings. The article and section headings herein
are for convenience of reference only, and shall not limit or otherwise affect the meaning hereof.

11

 

     Section 9.8 Execution in Counterparts. This Transaction SUBI Servicing Supplement may be
executed in any number of counterparts, each of which so executed and delivered shall be deemed to
be an original, but all of which shall together constitute but one and the same instrument.

     Section 9.9 Further Assurances. Each party will do such acts, and execute and
deliver to any other party such additional documents or instruments, as may be reasonably requested
in order to effect the purposes of this Transaction SUBI Servicing Supplement and to better assure
and confirm unto the requesting party its rights, powers and remedies hereunder.

     Section 9.10 Each SUBI Separate; Assignees of SUBI. Each party hereto acknowledges
and agrees (and each holder or pledgee of the Transaction SUBI, by virtue of its acceptance of such
Transaction SUBI or pledge thereof acknowledges and agrees) that (a) the Transaction SUBI is a
separate series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title
12 of the Delaware Code, 12 Del. Code § 3801 et seq., (b)(i) the
debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing with
respect to the Transaction SUBI or the Transaction SUBI Portfolio shall be enforceable against the
Transaction SUBI Portfolio only and not against any Other SUBI Assets or the UTI Portfolio and (ii)
the debts, liabilities, obligations and expenses incurred, contracted for or otherwise existing
with respect to any Other SUBI, any Other SUBI Portfolio, the UTI or the UTI Portfolio shall be
enforceable against such Other SUBI Portfolio or the UTI Portfolio only, as applicable, and not
against the Transaction SUBI or any Transaction SUBI Assets, (c) except to the extent required by
law, UTI Assets or SUBI Assets with respect to any SUBI (other than the Transaction SUBI) shall not
be subject to the claims, debts, liabilities, expenses or obligations arising from or with respect
to the Transaction SUBI, in respect of such claim, (d)(i) no creditor or holder of a claim relating
to the Transaction SUBI or the Transaction SUBI Portfolio shall be entitled to maintain any action
against or recover any assets allocated to the UTI or the UTI Portfolio or any Other SUBI or the
assets allocated thereto, and (ii) no creditor or holder of a claim relating to the UTI, the UTI
Portfolio or any SUBI other than the Transaction SUBI or any SUBI Assets other than the Transaction
SUBI Portfolio shall be entitled to maintain any action against or recover any assets allocated to
the Transaction SUBI, and (e) any purchaser, assignee or pledgee of an interest in the Transaction
SUBI or, the Transaction SUBI Certificate, must, prior to or contemporaneously with the grant of
any such assignment, pledge or security interest, (i) give to the Origination Trust a non-petition
covenant substantially similar to that set forth in Section 6.9 of the Origination Trust
Agreement, and (ii) execute an agreement for the benefit of each holder, assignee or pledgee from
time to time of the UTI or UTI Certificate and any Other SUBI or Other SUBI Certificate to release
all claims to the assets of the Origination Trust allocated to the UTI Portfolio and each Other
SUBI Portfolio and, in the event that such release is not given effect, to fully subordinate all
claims it may be deemed to have against the assets of the Origination Trust allocated to the UTI
Portfolio and each Other SUBI Portfolio.

     Section 9.11 No Petition. With respect to each Bankruptcy Remote Party, each party
hereto (and each holder and pledgee of the Transaction SUBI, by virtue of its acceptance of such
SUBI or pledge thereof) agrees that, prior to the date which is one year and one day after payment
in full of all obligations under each Financing, (i) no party hereto shall authorize such
Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary case or other
Proceeding seeking liquidation, reorganization or other relief with respect to such Bankruptcy

12

 

Remote Party or its debts under any bankruptcy, insolvency or other similar law now or
hereafter in effect in any jurisdiction or seeking the appointment of an administrator, trustee,
receiver, liquidator, custodian or other similar official with respect to such Bankruptcy Remote
Party or any substantial part of its property or to consent to any such relief or to the
appointment of or taking possession by any such official in an involuntary case or other Proceeding
commenced against such Bankruptcy Remote Party, or to make a general assignment for the benefit of
any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) none of the
parties hereto shall commence or join with any other Person in commencing any Proceeding against
such Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency law or
statute now or hereafter in effect in any jurisdiction.

     Section 9.12 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:

          (a) submits for itself and its property in any legal action or Proceeding relating to this
Transaction SUBI Servicing Supplement or any documents executed and delivered in connection
herewith, or for recognition and enforcement of any judgment in respect thereof, to the
nonexclusive general jurisdiction of the courts of the State of New York, the courts of the United
States of America for the Southern District of New York and appellate courts from any thereof;

          (b) consents that any such action or Proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of such action or Proceeding in any such
court or that such action or Proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;

          (c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 9.3 of this
Transaction SUBI Servicing Supplement;

          (d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to sue in any other jurisdiction; and

          (e) to the extent permitted by applicable law, each party hereto irrevocably waives all right
of trial by jury in any action, Proceeding or counterclaim based on, or arising out of, under or in
connection with this Transaction SUBI Servicing Supplement, any other Transaction Document, or any
matter arising hereunder or thereunder.

     Section 9.13 Limitation of Liability of U.S. Bank. Notwithstanding anything
contained herein to the contrary, this instrument has been signed by U.S. Bank not in its
individual capacity but solely in its capacities as Administrative Trustee and as SUBI Trustee and
in no event shall U.S. Bank in its individual capacity have any liability for the representations,
warranties, covenants, agreements or other obligations of the Origination Trust hereunder, as to
all of which recourse shall be had solely to the assets of the Origination Trust.

     Section 9.14
Information Requests.  The parties hereto shall provide any information
reasonably requested by the Servicer, the Issuer, the Transferor or any of their Affiliates, in
order

13

 

to comply with or obtain more favorable treatment under any current or future law, rule,
regulation, accounting rule or principle.

     Section 9.15
Regulation AB. The Servicer shall cooperate fully with the Transferor
and the Issuer to deliver to the Transferor and the Issuer (including any of its assignees or
designees) any and all statements, reports, certifications, records and any other information
necessary in the good faith determination of the Transferor or the Issuer to permit the Transferor
to comply with the provisions of Regulation AB and its reporting obligations under the Exchange
Act, together with such disclosures relating to the Servicer and the Units, or the servicing of the
Units, reasonably believed by the Transferor to be necessary in order to effect such compliance.

[SIGNATURES ON THE FOLLOWING PAGE]

14

 

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

	 	 	 	 	 
	 	VW CREDIT LEASING, LTD. 

 	 
	 	By:  	U.S. Bank National Association, not in its individual capacity but solely as Administrative Trustee 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-1

 

	 	 	 	 	 

	 	 	 	 	 
	 	VW CREDIT, INC., as Servicer

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-2

 

	 	 	 	 	 

	 	 	 	 	 
	 	[U.S. BANK NATIONAL ASSOCIATION], not in its individual
capacity but solely as SUBI Trustee

 	 
	 	By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 

S-3

 

	 	 	 	 	 

EXHIBIT A

FORM OF ANNUAL OFFICER’S CERTIFICATE

(As required to be delivered on or before [March 30] of each

calendar year beginning with [March 30], [______], pursuant to

Section 7.11 of the Transaction SUBI Servicing Supplement)

VW Credit, Inc. Annual Compliance Certificate

Pursuant to Section 7.11 of the Transaction SUBI Servicing Supplement

And Item 1123 of Regulation AB

 

VOLKSWAGEN AUTO LEASE TRUST [______]

The undersigned, duly authorized officers of VW Credit, Inc. (“VCI”), as Servicer (the “Servicer”),
under the Transaction SUBI Supplement [______] to Servicing Agreement dated as of [   ],
[2009] (as amended and supplemented, or otherwise modified and in effect from time to time, the
“Transaction SUBI Servicing Supplement”), by and among VW Credit Leasing, Ltd., VCI, as Servicer,
and U.S. Bank National Association, as SUBI Trustee, do hereby certify that:

	 	1.	 	A review of the activities of the Servicer during the period from [  
], [______] through December 31, [______], and of its performance under the Transaction
SUBI Servicing Supplement was conducted under our supervision.

	 
	 	2.	 	To the best of our knowledge, based on such review, the Servicer has, fulfilled all of
its obligations under the Transaction SUBI Servicing Supplement in all material respects
throughout such period, [except that for the period beginning [ ],
[______] through [   ], [______] [describe each failure, if any, of the
Servicer to fulfill its obligations under the provisions of the Transaction SUBI Servicing
Supplement in any material respect and the nature and status thereof]].

A-1

 

     IN WITNESS WHEREOF, each of the undersigned has duly executed this Certificate on behalf of
the Servicer this ___day of ______, [______].

	 	 	 	 	 
	 	 	 
	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

A-2

 

EXHIBIT B

FORM OF ANNUAL ERISA AND TEXAS MARGIN TAX CERTIFICATION

(As required to be delivered on or before [April 30] of each

calendar year beginning with [April 30, 2010], pursuant to

Section 7.11 of the Transaction SUBI Servicing Supplement)

VW CREDIT, INC.

 

VOLKSWAGEN AUTO LEASE TRUST 20[__]-[__]

 

          The undersigned, duly authorized representatives of VW Credit, Inc. (“VCI”), as
Servicer, pursuant to the Transaction SUBI Supplement 20[__]-[__] to Servicing Agreement dated as
of [          ], [2009] (as amended and supplemented, or otherwise modified and in effect from
time to time, the “Transaction SUBI Servicing Supplement”), by and among VW CREDIT LEASING,
LTD., VCI, as Servicer, and U.S. BANK NATIONAL ASSOCIATION, not in its individual capacity but
solely as SUBI Trustee, do hereby certify that:

1. The undersigned are Authorized Officers of VCI.

2. As of the end of VCI’s preceding fiscal year, with respect to the ERISA plans subject to
Title IV of ERISA maintained or sponsored by VCI or any of VCI’s ERISA Affiliates (i.e., any
member of VCI’s “controlled group,” within the meaning of Section 4001 of ERISA)
(collectively, the “Plans”):

(a) [Plan assets exceed the present value of accrued benefits][The present value of
the accrued benefits exceeds plan assets] under each of the Plans as of the close of
the most recent Plan year, as required to be reported in the financial statements
for such Plan filed with the most recent Form 5500 for such Plan (the “Most
Recent Plan Financial Statements”).

[Select from the following statements]

[(b) [Neither VCI nor any of its ERISA Affiliates (i) anticipates that the value of
the assets of any Plan it maintains would not be sufficient to cover any Funding
Target; or (ii) is contemplating benefit improvements with respect to any Plan then
maintained by any such entity or the establishment of any new Plan, either of which
would cause any such entity to maintain a Plan with a Funding Target in excess of
plan assets. The term “Funding Target” has the meaning set forth in section 430(d)
of the Internal Revenue Code.][Describe any failure of the certifications in clauses
(i) and (ii) to be true.]

B-1

 

[(c) If all of the Plans (other than a multiemployer Plan) were terminated
(disregarding any Plans with surpluses), the unfunded liabilities at such date with
respect to such Plans, their participants or beneficiaries, and the PBGC, would not
have exceeded [5%] of the consolidated net worth of Volkswagen AG or [25%] of the
consolidated net worth of Volkswagen of America, Inc. at such date.]

[(d) If VCI or any of VCI’s ERISA Affiliates withdrew or were to have withdrawn from
all multiemployer Plans at such date, the aggregate withdrawal liability would not
have exceeded 5% of the consolidated net worth of Volkswagen AG or 25% of the
consolidated net worth of Volkswagen of America, Inc. at such date.]

[(e) There are no unpaid minimum required contributions with respect to any Plan as
disclosed on the Most Recent Plan Financial Statements.]

[(f) [Describe any facts that would cause the statements in clauses (b), (c), (d),
or (e) to be incorrect.]

[Select one of the following options]

     [3. As of the end of VCI’s preceding fiscal year, VCI (or its Affiliate) (a) has filed all
required Texas Margin Tax combined group reports, as required under Section 171.1014 of the Texas
Tax Code, by or for the “Combined Group,” as defined in Section 171.0001 of the Texas Tax Code, (b)
the amount of all Texas Margin Tax shown due on such reports was $[ ] and
(c) VCI (or its Affiliate) has paid any and all Texas Margin Tax shown due on such reports.

     [3. As of the end of VCI’s preceding fiscal year, VCI and its Affiliates were not required to
file any Texas Margin Tax combined group reports, as required under Section 171.1014 of the Texas
Tax Code, by or for the “Combined Group,” as defined in Section 171.0001 of the Texas Tax Code, and
no Texas Margin Tax was due.]

          Capitalized terms used but not defined herein are used as defined in the Transaction SUBI
Servicing Supplement.

B-2

 

     IN
WITNESS WHEREOF, each of the undersigned has duly executed this Certificate this ______day
of ______.

	 	 	 	 	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 
	 	 	 
	 	By:  	
 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

B-3EX-10.9

Exhibit 10.9

ISDA

International Swap Dealers Association, Inc.

SCHEDULE

to the

Master Agreement

dated as of
                                        

	 	 	 	 	 	 	 
	between

	 	 
	 and	    
	 	[Volkswagen Auto Loan Enhanced Trust 200[   ] — [   ]

[Volkswagen Auto Lease Trust 200[   ] — [   ]
	 

	 	(“Party A”)
	 	 	 	             (“Party B”)

Part 1. Termination Provisions.

	(a)	 	The following shall apply:

(i) Termination by Party A — Events of Default Notwithstanding the provisions of Section
5(a), the only events which will constitute Events of Default when they occur in relation
to Party B will be those events specified in Sections 5(a)(i) (Failure To Pay Or Deliver)
and Section 5(a)(vii) (Bankruptcy), other than the events specified in Section
5(a)(vii)(2).

Accordingly, the provisions of Section 5(a)(ii) (Breach Of Agreement), the provisions of
Section 5(a)(iii) (Credit Support Default), the provisions of Section 5(a)(iv)
(Misrepresentation), the provisions of Section 5(a)(v) (Default Under Specified
Transaction), the provisions of Section 5(a)(vi) (Cross Default), the provisions of
Section 5(a)(vii)(2) (insolvency) and the provisions of Section 5(a)(viii) (Merger Without
Assumption) will in no circumstances be regarded as having given rise to an Event of
Default with respect to Party B.

(ii) Termination by Party A — Termination Events Notwithstanding the provisions of
Section 5(b), and save as otherwise provided herein, the only events which will constitute
Termination Events when they occur in relation to Party B will be those events specified
in Section 5(b)(i) (Illegality) and Section 5(b)(v) (Additional

 

 

Termination
Event). Accordingly, the provisions of Section 5(b)(iv) (Credit
Event Upon Merger) will not be regarded as having given rise to a Termination Event with respect to
Party B and Party A may not designate an Early Termination Date related to the provisions
of Section 5(b)(ii) (Tax Event) or the provisions of Section 5(iii) (Tax Event Upon
Merger).

(iii) Termination by Party B — Events of Default and Termination Events. Save as otherwise
provided herein, the provisions of Section 5 will apply with respect to Party A without
amendment save for Section 5(a)(vi) (Cross Default) which will in no circumstances be
regarded as having given rise to an Event of Default with respect to Party A.

	(b)	 	“Specified Entity” none specified in relation to either Party A or Party B.
	 
	(c)	 	“Specified Transaction” will have the meaning specified in Section 14 of this Agreement.
	 
	(d)	 	The “Automatic Early Termination” provision of Section 6(a) of this Agreement will not apply
to Party A and Party B.
	 
	(e)	 	Payments on Early Termination. For the purpose of Section 6(e) of this Agreement:

(i) Market Quotation will apply.

(ii) The Second Method will apply.

	(f)	 	“Termination Currency” means U.S. Dollars.
	 
	(g)	 	Additional Termination Event will apply.

(i) The occurrence of any of the following events shall be an Additional Termination
Event:

     (A) “Moody’s Creditwatch Event”: In the event Moody’s assigns (x) (i) a long-term
debt rating at or below A1 On Watch for Downgrade to [Party A][Party A’s Credit Support
Provider], or (ii) a short-term debt rating at or below Prime-1 On Watch for Downgrade to
[Party A][Party A’s Credit Support Provider] (if [Party A][Party A’s Credit Support
Provider] has both long-term and short-term debt ratings), or (y) a long-term debt rating
at or below Aa3 On Watch for Downgrade to [Party A][Party A’s Credit

2

 

Support
Provider] (if [Party A][Party A’s Credit Support Provider] only has a long-term debt rating) (either such event, a “Party A Creditwatch Event”), Party A shall promptly,
but in no event later than two (2) Local Business Days following the date of such Party A
Creditwatch Event, give Party B, the Servicer and the Indenture Trustee written notice of
the occurrence of such Party A Creditwatch Event. In addition, not later than thirty (30)
Local Business Days after such Party A Creditwatch Event, Party A shall either (i) obtain
(at Party A’s expense) an unconditional guarantee or other similar assurance in respect of
Party A’s obligations under this Agreement from a guarantor that has Rated Debt and which
guarantee and guarantor satisfy the Rating Agency Condition; or (ii) transfer from time to
time to Party B under the Credit Support Annex an amount of Eligible Collateral having a
value equal to Party B’s Exposure (as defined in the printed form of the Credit Support
Annex) under the Affected Transactions. Once a Party A Creditwatch Event ceases to exist,
Party B shall return any such Eligible Collateral to Party A as soon as reasonably
practicable and to the extent such Eligible Collateral has not already been applied in
accordance with this Agreement or the Credit Support Annex. Party B shall have the right
to terminate this Agreement if at any time Party A fails to comply with any of its
obligations under this paragraph in full and in a timely manner.

With respect to the foregoing Additional Termination Event Party A shall be the sole
Affected Party. In the event of an Early Termination Date in respect of a Party A
Creditwatch Event and the entering into by Party B of alternative swap arrangements, Party
A shall pay all reasonable out-of-pocket expenses, including legal fees and stamp taxes,
relating to the entering into of such alternative swap arrangements.

     (B) “Downgrade Termination Event”: In the event (i) S&P assigns (x) a long-term debt
rating equal to or lower than “A” to [Party A][Party A’s Credit Support Provider] without
(y) assigning a short-term debt rating of at least “A-1” to [Party A][Party A’s Credit
Support Provider], (ii) S&P assigns a long-term debt rating lower than “A+” to [Party
A][Party A’s Credit Support Provider] (if [Party A][Party A’s Credit Support Provider]
only has a long-term debt rating), (iii) Moody’s assigns (x) a long-term debt rating equal
to or lower than “A3” to [Party A][Party A’s Credit Support Provider], or (y) a short-term
debt rating lower than “Prime-2” to [Party A][Party A’s Credit Support Provider] (if
[Party A][Party A’s Credit Support Provider] has both long-term and short-term debt
ratings), (iv) Moody’s assigns a long-term debt rating equal to or lower than A2 to [Party
A][Party A’s Credit Support Provider] (if [Party A][Party A’s Credit Support

3

 

Provider]
only has a long-term debt rating), (v) [Fitch assigns (x) a long-term senior unsecured debt rating lower than “A” to [Party A][Party A’s Credit Support Provider] or
(y) a short-term senior unsecured debt rating lower than “F1” to [Party A][Party A’s
Credit Support Provider] or (vi)] either S&P, Moody’s [or Fitch] ceases to assign such
ratings to [Party A][Party A’s Credit Support Provider], (each such event, a “Party A
Rating Downgrade”), Party A shall (i) promptly, but in no event later than two (2) Local
Business Days following the date of such Party A Rating Downgrade, give Party B, the
Servicer and the Indenture Trustee written notice of the occurrence of such Party A Rating
Downgrade, and (ii) use reasonable efforts to find a Qualified Counterparty promptly and
transfer, in accordance with and subject to the limitations of Part 5(e), its rights and
obligations to Qualified Counterparty. Party A shall continue to perform its obligations
and use reasonable efforts to find a Qualified Counterparty until a Qualified Counterparty
is in place. The cost of finding and putting into place a Qualified Counterparty shall be
borne by Party A. Not later than thirty (30) Local Business Days after such Party A
Rating Downgrade, if Party A has not transferred its obligations to a Qualified
Counterparty in accordance with the foregoing provisions, Party A shall either (i) obtain
(at Party A’s expense) an unconditional guarantee or other similar assurance in respect of
Party A’s obligations under this Agreement from a guarantor that has Rated Debt and which
guarantee and guarantor satisfy the Rating Agency Condition; or (ii) transfer from time to
time to Party B under the Credit Support Annex the amount of Eligible Collateral required
under the Credit Support Annex. In the event Party A complies with the requirements set
forth in the preceding sentence and the Downgrade Termination Event relates only to an
action taken by S&P, Party A shall not be required to find a replacement counterparty
until the time at which S&P assigns a long-term senior unsecured debt rating lower than
BBB+ to [Party A][Party A’s Credit Support Provider], at which time Party A must
immediately find and put into place a Qualified Counterparty. Once a Qualified
Counterparty is in place, Party B shall return any such Eligible Collateral to Party A as
soon as reasonably practicable and to the extent such Eligible Collateral has not already
been applied in accordance with this Agreement or the Credit Support Annex. Party B shall
have the right to terminate this Agreement if at any time Party A fails to comply with any
of its obligations under this paragraph in full and in a timely manner.

With respect to the foregoing Additional Termination Event Party A shall be the sole
Affected Party. In the event of an Early Termination Date in respect of a Downgrade
Termination Event and the entering into by Party B of alternative swap arrangements,

4

 

Party A shall pay all reasonable out-of-pocket expenses, including legal fees and stamp
taxes, relating to the entering into of such alternative swap arrangements.

     (C) Any acceleration of the Notes outstanding occurs following an event of default
under the Indenture.

With respect to the foregoing Additional Termination Event, Party
B shall be the sole Affected Party.

Part 2. Tax Representations

	(a)	 	Payer Representations. For the purpose of Section 3(e) of this Agreement, Party A will make
the following representation and Party B will make the following representation:

It is not required by any applicable law, as modified by the practice of any relevant
governmental revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest under
Section 2(e), 6(d)(ii) or 6(e) of this Agreement) to be made by it to the other party
under this Agreement. In making this representation, it may rely on (i) the accuracy of
any representations made by the other party pursuant to Section 3(f) of this Agreement,
(ii) the satisfaction of the agreement contained in Section 4(a)(i) or 4(a)(iii) of this
Agreement and the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii) of this Agreement and (iii) the satisfaction of
the agreement of the other party contained in Section 4(d) of this Agreement, provided
that it shall not be a breach of this representation where reliance is placed on clause
(ii) and the other party does not deliver a form or document under Section 4(a)(iii) of
this Agreement by reason of material prejudice to its legal or commercial position.

	(b)	 	Payee Representations. For the purpose of Section 3(f) of this Agreement, Party A and Party B
will make the representations in (i) and (ii) below.

	 	(i)	 	Party A represents that it is a [type of entity] organized under the
laws of                .

5

 

	 	(ii)	 	Party B represents that it is created under and governed by the laws of the
State of Delaware and is a “United States person” as such term is defined in Section
7701(a)(30) of the Code.

Part 3. Agreement to Deliver Documents.

For the purpose of Sections 4(a)(i) and (ii) of this Agreement, each party agrees to deliver the
following documents, as applicable:

	(a)	 	Tax forms, documents or certificates to be delivered are:

Party A and Party B shall promptly deliver to the other party (or as directed) any form or
document accurately completed and in a manner reasonably satisfactory to the other party
that may be required or reasonably requested in order to allow the other party to make a
payment under a Transaction without any deduction or withholding for or on account of any
Tax or with such deduction or withholding at a reduced rate, promptly upon reasonable demand
by the other party.

6

 

	(b)	 	Other documents to be delivered are:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Covered by Section
	Party required to	 	Form/Document/	 	Date by which to be	 	3(d) Representation
	deliver document	 	Certificate	 	delivered	 	of this Agreement
	Party A and Party B

	 	Evidence of the
authority of the
signatories of this
Agreement including
specimen signatures
of such
signatories.
	 	As soon as
practicable after
execution of this
Agreement and the
first Confirmation
of a Transaction
and, if requested,
as soon as
practicable after
execution of any
Confirmation of any
other Transaction.
	 	Yes
	 
	 	 	 	 	 	 
	Party A

	 	An opinion of
counsel addressed
to Party B in form
and substance
reasonably
acceptable to Party
B.
	 	 	 	No
	 
	 	 	 	 	 	 
	Party B

	 	An opinion of Party
B’s counsel
addressed to Party
A in form and
substance
reasonably
acceptable to Party
A.
	 	 	 	No
	 
	 	 	 	 	 	 
	Party B

	 	A duly executed
certificate of the
secretary or
assistant secretary
of the Owner
Trustee of
	 	 	 	Yes

7

 

	 	 	 	 	 	 	 
	 

	 	 Party B
certifying the name
and true signature
of each person
authorized to
execute this
Agreement and enter
into Transactions
for Party B.	 	 	 	 
	 
	 	 	 	 	 	 
	Party B

	 	A duly executed
copy of the
Indenture.
	 	 	 	Yes

Part 4. Miscellaneous.

	(a)	 	Addresses for Notices. For the purpose of Section 12(a) of this Agreement:

Address for notices or communications to Party A:

Address:  

Attention:  

Telex No.:
 
 Answerback:   

Facsimile No.:
 
Telephone No.:  

Electronic Messaging System Details:
 

Address for notices or communications to Party B:

Address: c/o [Owner Trustee]

Attention:
 

Telex No.: Not applicable       Answerback: Not applicable

Facsimile No.:
 
Telephone No.:  

Electronic Messaging System Details: Not applicable

With a copy to:

8

 

VW Credit, Inc.

2200 Ferdinand Porsche Drive

Herndon, VA 20171

Attention: Treasurer

Telephone No.: (703) 364-7000

Facsimile No.: (703) 364-7077

	(b)	 	Process Agent. For the purpose of Section 13(c) of this Agreement:

Party A appoints as its Process Agent
[                                       
 ]

Party B appoints as its Process Agent Not applicable

	(c)	 	Notices. Section 12(a) of the Agreement is amended by adding the words in the third line
thereof after the phrase “messaging system” and before the “)” the words “; provided,
however, any such notice or other communication may be given by facsimile transmission if
telex is unavailable, no telex number is supplied by the party providing notice, or if answer
back confirmation is not received from the party to whom the telex is sent.”
	 
	(d)	 	Offices. The provisions of Section 10(a) of this Agreement will apply to this Agreement.
	 
	(e)	 	Multibranch Party. For the purpose of Section 10(c) of this Agreement:
	 
	 	 	Party A [is] [is not] a Multibranch Party and, if so, may act through the following
offices: [please specify]
	 
	 	 	Party B is not a Multibranch Party.
	 
	(f)	 	Calculation Agent. The Calculation Agent is Party B, unless otherwise specified in a
Confirmation in relation to the relevant Transaction.
	 
	(g)	 	Credit Support Document. Details of any Credit Support Document:

With respect to Party A: The Credit Support Annex

With respect to Party B: Not applicable

	(h)	 	Credit Support Provider. Credit Support Provider means in relation to

9

 

Party A: [Not applicable].

Party B: Not applicable.

	(i)	 	Governing Law. This Agreement will be governed by and construed in accordance with the laws
of the State of New York (without reference to choice of laws doctrine except Section 5-1401
and Section 5-1402 of the New York General Obligation Law).

	 
	(j)	 	Netting of Payments. The limitation set forth in Section 2(c)(ii) of this Agreement will
apply and therefore the netting in Section 2(c) of this Agreement will be limited to the same
Transaction.

	 
	(k)	 	“Affiliate” will have the meaning specified in Section 14 of this Agreement.
	 
	(l)	 	No Gross Up. Section 2(d)(i)(4) is hereby deleted and replaced by the following:

“(4) (A) If Party A is the party so required to deduct or withhold, then Party A shall
make such additional payment as is necessary to ensure that the net amount actually
received by Party B (free and clear of all Taxes, whether assessed against it or Party B)
will equal the full amount Party B would have received had no such deduction or
withholding been required; and

(B) if Party B is the party so required to deduct or withhold, then Party B shall make the
relevant payment subject to such deduction or withholding.

For the avoidance of doubt, the fact that any payment is made by Party B subject to the
provisions of (B) above shall at no time affect the obligations of Party A under (A)
above.”

10

 

Part 5. Other Provisions.

	(a)	 	ISDA Definitions

The definitions and provisions contained in the 2000 ISDA Definitions (the “2000
Definitions”) as published by the International Swaps and Derivatives Association, Inc.,
the 1998 FX and Currency Option Definitions (the “FX Definitions”), as published by ISDA,
the Emerging Markets Traders Association and The Foreign Exchange Committee, the 1996 ISDA
Equity Derivatives Definitions (the “Equity Definitions”) and the 1997 ISDA Government
Bond Option Definitions (the “Bond Definitions”) as published by the International Swaps
and Derivatives Association, Inc., the 2000 Definitions, the FX Definitions, the Equity
Definitions and the Bond Definitions together known as the “Definitions”, each are
incorporated by reference into this Agreement. The Agreement and each Transaction will be
governed by the Definitions as they may be officially amended and supplemented from time
to time by ISDA.

In the event of any inconsistency between the 2000 Definitions and the FX Definitions, the
FX Definitions shall prevail with respect to a FX Transaction or a Currency Option
Transaction as defined in the FX Definitions.

In the event of any inconsistency between the 2000 Definitions and the Equity Definitions,
the Equity Definitions shall prevail with respect to a Transaction as defined in the
Equity Definitions.

In the event of any inconsistency between the 2000 Definitions and the Bond Definitions,
the Bond Definitions shall prevail with respect to a Government Bond Option Transaction as
defined in the Bond Definitions.

For the sake of clarity, unless otherwise specified in this Agreement, the following
documents shall govern in the order in which they are listed in the event of any
inconsistency between any of the documents:

(i) the Confirmation;

(ii) the Schedule;

(iii) the Equity Definitions (solely with respect to Transactions as defined therein); and
the Bond Definitions (solely with respect to Government Bond Option
Transactions

11

 

as defined therein); and the FX Definitions (solely with respect to FX and
Currency Option Transactions as defined therein);

(iv) the 2000 Definitions

(v) the printed form of ISDA Master Agreement.

	(b)	 	Relationship Between Parties

Each party will be deemed to represent to the other party on the date on which it enters
into a Transaction that (absent a written agreement between the parties that expressly
imposes affirmative obligations to the contrary for the Transaction):

(i) Non-Reliance. It is acting for its own account, and it has made its own independent
decisions to enter into that Transaction and as to whether that Transaction is appropriate
or proper for it based upon its own judgement and upon advice from such advisors as it has
deemed necessary. It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into that Transaction; it being
understood that information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to enter into
that Transaction. It has not received from the other party any assurance or guarantee as
to the expected results of that Transaction.

(ii) Assessment and Understanding. It is capable of assessing the merits of and
understanding (on its own behalf or through independent professional advice), and
understands and accepts, the terms, conditions and risks of that Transaction. It is also
capable of assuming, and assumes, the risks of that Transaction.

(iii) Status of Parties. Each party is acting as principal and not as agent and the other
party is not acting as a fiduciary for or as an advisor to it in respect of that
Transaction.

(iv) Eligible Contract Participant. It is an “eligible contract participant” as
defined in Section 1a(12) of the U.S. Commodity Exchange Act, 7 U.S.C. Section 1a(12).

(v) FDIC Requirements. If it is a bank subject to the requirements of 12 U.S.C. §
1823(e), the necessary action to authorize referred to in the representation in Section

12

 

3(a)(ii) includes all authorizations required under the Federal Deposit Insurance Act as
amended, including amendments effected by the Financial Institutions Reform,
Recovery and
Enforcement Act of 1989, and under any agreement, writ, decree, or order entered into with
such party’s supervisory authorities. At all times during the term of this Agreement,
such party will continuously include and maintain as part of its official written books
and records this Agreement, this Schedule and all other exhibits, supplements, and
attachments hereto and documents incorporated by reference herein, all Confirmations, and
evidence of all necessary authorizations.

(vi) ERISA. It continuously represents that it is not (i) an employee benefit plan (an
“ERISA Plan”) as defined in Section 3(3) of the Employee Retirement Income Security Act of
1974, as amended (“ERISA”), subject to Title 1 of ERISA or Section 4975 of the Internal
Revenue Code of 1986, as amended, (ii) a person or entity acting on behalf of an ERISA
Plan or (iii) a person or entity the assets of which constitute assets of an ERISA Plan.”
It will provide notice to the other party in the event that it is aware that it is in
breach of any aspect of this representation or is aware that with the passing of time,
giving of notice or expiry of any applicable grace period, it will breach this
representation.

	(c)	 	Waiver of Jury Trial. Each party hereby irrevocably waives any and all rights to trial by
jury with respect to any legal proceeding arising out of or relating to this Agreement or any
Transaction contemplated hereby.

	 
	(d)	 	Severability. Any provision of this Agreement which is prohibited or unenforceable in any
jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition
or unenforceability without invalidating the remaining provisions of the Agreement or
affecting the validity or enforceability of such provision in any other jurisdiction unless
such severance shall substantially impair the benefits of the remaining portions of this
Agreement or changes the reciprocal obligations of the parties. The parties hereto shall
endeavour in good faith negotiations to replace the prohibited or unenforceable provision with
a valid provision, the economic effect of which comes as close as possible to that of the
prohibited or unenforceable provision.

	 
	(e)	 	Transfers. Notwithstanding the provisions of Section 7:-

(i) No transfer by Party A of this Agreement or any interest or obligation in or of Party
A under this Agreement shall be effective unless:

13

 

	 	(A)	 	Party B consents to such transferee;
	 
	 	(B)	 	The Rating Agency Condition shall have been satisfied;
	 
	 	(C)	 	Party A shall have given Party B, the Servicer and the
Indenture Trustee at least twenty days prior written notice of the proposed
transfer; and

	 
	 	(D)	 	such transfer otherwise complies with the terms of the
Indenture and the other Transaction Agreements.

     Upon the effectiveness of any transfer, each of Party A and Party B shall be released
(in each case to the extent of the obligations so transferred) from its obligations as a
party to this Agreement without any further notification or other action.

(ii) Except to the extent contemplated by the Indenture, neither this Agreement nor any
interest in or under this Agreement may be transferred by Party B to any other entity save
with Party A’s prior written consent (such consent not to be unreasonably withheld or
delayed).

	(f)	 	Permitted Security Interest. For purposes of Section 7 of this Agreement, Party A hereby
consents to the Permitted Security Interest.

	 
	 	 	“Permitted Security Interest” means the pledge and assignment by Party B of the Swap
Collateral to the Indenture Trustee pursuant to the Indenture, and the granting to the
Indenture Trustee of a security interest in the Swap Collateral pursuant to the Indenture.

	 
	 	 	“Swap Collateral” means all right, title and interest of Party B in this Agreement, each
Transaction hereunder, and all present and future amounts payable by Party A to Party B
under or in connection with this Agreement or any Transaction governed by this Agreement,
including, without limitation, any transfer or termination of any such Transaction.

	 
	 	 	“Indenture Trustee” means
                               or any successor, acting as Indenture Trustee
pursuant to the Indenture.

	 
	(g)	 	Absence of Certain Events. Section 3(b) of this Agreement is herby amended by inserting the
parenthetical “(with respect to Party A only)” immediately after the phrase “No Event of
Default or”.

14

 

	(h)	 	Events of Default. Section 5(a)(i) of this Agreement is hereby amended by the deletion of
the words “if such failure is not remedied on or before the third Local Business Day after
notice of such failure is given to the party” and the addition of the following at the end
thereof:

	 
	 	 	“, it being understood that amounts payable by Party B are not due except to the extent
set forth in Section 8.4(a) of the Indenture.”

	 
	(i)	 	Payment on Early Termination. If an Early Termination Date occurs in respect of which Party
A is the Defaulting Party, Party B will not be required to pay any amounts payable to Party A
under Section 6(e) in respect of such Early Termination Date, and Party A will not be
permitted to set-off in respect of such amounts, until payment in full of all amounts
outstanding under the Notes.

	 
	(j)	 	No Set-Off. Except as set forth in clause (i) above, Party A and Party B hereby waive any
and all right of set-off with respect to any amounts due under this Agreement or any
Transaction, provided that nothing herein shall be construed to waive or otherwise limit the
netting provisions contained in Sections 2(c) and 6(e) of this Agreement.

	 
	(k)	 	Indenture. Party B hereby acknowledges that Party A is a secured party under the Indenture
with respect to this Agreement, and Party B agrees for the benefit of Party A that it will not
amend the Indenture in a manner which materially and adversely affects the rights or
obligations of Party A under the Indenture unless Party A shall have consented in writing to
such action (and such consent shall be deemed to have been given if Party A does not object in
writing within ten (10) business days after receipt of a written request for such consent).

	 
	(l)	 	No Recourse. The liability of Party B to Party A hereunder is limited in recourse solely to
the amounts payable to Party A from the Available Funds on each Payment Date in accordance
with the priority of payments set forth in Section 8.4(a) of the Indenture.

	 
	(m)	 	No Petition. Party A hereby covenants and agrees that prior to the date which is one year and
one day after payment in full of all obligations under each Financing (i) it shall not
authorize any Bankruptcy Remote Party to commence a voluntary winding-up or other voluntary
case or other proceeding seeking liquidation, reorganization or other relief with respect to
such Bankruptcy Remote Party or its debts under any bankruptcy, insolvency or other similar
law now or hereafter in effect in any jurisdiction
or seeking the appointment of an administrator, a trustee, receiver, liquidator, custodian
or other

15

 

	 	 	similar official with respect to such Bankruptcy Remote Party or any substantial
part of its property or to consent to any such relief or to the appointment of or taking
possession by any such official in an involuntary case or other proceeding commenced
against such Bankruptcy Remote Party, or to make a general assignment for the benefit of
any party hereto or any other creditor of such Bankruptcy Remote Party, and (ii) it shall
not commence or join with any other Person in commencing any proceeding against such
Bankruptcy Remote Party under any bankruptcy, reorganization, liquidation or insolvency
law or statute now or hereafter in effect in any jurisdiction. This section shall
survive the termination of this Agreement.

	 
	 	 	As used above, “Bankruptcy Remote Party” means any of [Volkswagen Auto Lease/Loan
Underwritten Funding, LLC], [or] Party B[, the Origination Trust or any special purpose
entity (and the general partner of any special purpose entity that is a partnership, or
the managing member of any special purpose entity that is a limited liability company)
that holds a beneficial interest in the Origination Trust]. “Financing” means[,
collectively, (i) any financing transaction of any sort undertaken by VW Credit, Inc. or
any affiliate of VW Credit, Inc. involving, directly or indirectly, Origination Trust
assets (including, without limitation, any financing undertaken in connection with the
issuance and assignment of any SUBI, (ii) any sale or purchase by Volkswagen Auto
Lease/Loan Underwritten Funding, LLC or any other special purpose entity of any interest
in one or more SUBIs and (iii) any other asset securitization, synthetic lease,
sale-leaseback, secured loan or similar transaction involving assets (or a beneficial
interest in assets) of the Origination Trust.]

	 
	(n)	 	Confirmation. Each party acknowledges and agrees that the [two] Confirmations executed as of
the date hereof and designated as Party A Global ID Nos.       and       shall be the only
Transactions governed by this Agreement (it being understood that, in the event such
Confirmations shall be amended (in any respect), such amendment shall not constitute (for
purposes of this paragraph) a separate Transaction or a separate Confirmation). Party A and
Party B shall not enter into any additional Confirmations or Transactions hereunder.

	 
	(o)	 	Potential Events of Default. Section 2(a)(iii) is amended by the deletion of the words “or
Potential Event of Default”.

	 
	(p)	 	Limitation of Liability. Notwithstanding anything contained herein to the contrary, in
executing this Agreement (including the Schedule, Credit Support Annex and each

16

 

	 	 	Confirmation)
on behalf of Party B,                           
                 
 (the “Owner Trustee”) and the Indenture
Trustee are acting solely in its capacity as owner trustee of Party B and indenture trustee,
respectively, and not in its individual capacity, and in no event shall either one of them, in
their individual capacity, have any liability for the representations, warranties, covenants,
agreements or other obligations of Party B hereunder, for which recourse shall be had solely
to the assets of Party B, except to the extent of its fraud, breach of trust or willful
misconduct.

	 
	[(q) 	 	Interseries Waiver. Party A hereby covenants and agrees that (a) the Transaction SUBI is a
separate series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of
Title 12 of the Delaware Code, 12 Del.Code § 3801 et seq., (b)(i) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with
respect to the Transaction SUBI and the Transaction SUBI assets shall be enforceable against
the Transaction SUBI assets only, and not against any other SUBI assets or the UTI assets and
(ii) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to any other SUBI, any other SUBI assets, the UTI or the UTI assets
shall be enforceable against such other SUBI assets or the UTI assets only, as applicable, and
not against the Transaction SUBI or any other SUBI assets, (c) except to the extent required
by law, UTI assets or SUBI assets with respect to any SUBI (other than the Transaction SUBI)
shall not be subject to the claims, debts, liabilities, expenses or obligations arising from
or with respect to the Transaction SUBI in respect of such claim, (d)(i) no creditor or holder
of a claim relating to the Transaction SUBI or the Transaction SUBI assets shall be entitled
to maintain any action against or recover any assets allocated to the UTI or the UTI assets or
any other SUBI or the assets allocated thereto, and (ii) no creditor or holder of a claim
relating to the UTI, the UTI assets or any SUBI other than the Transaction SUBI or any SUBI
assets other than the Transaction SUBI assets shall be entitled to maintain any action against
or recover any assets allocated to the Transaction SUBI, and (e) any purchaser, assignee or
pledgee of an interest in the Transaction SUBI or the certificate representing the Transaction
SUBI must, prior to or contemporaneously with the grant of any such assignment, pledge or
security interest, (i) give to the Origination Trust a non-petition covenant, and (ii) execute
an agreement for the benefit of each holder, assignee or pledgee from time to time of the UTI
or UTI certificate and any other SUBI or other SUBI certificate, to release all claims to the
assets of the Origination Trust allocated to the UTI assets and each other SUBI and in the
event that such release is not given effect, to fully subordinate all claims it may be
deemed to

17

 

	 	 	have against the assets of the Origination Trust allocated to the UTI and each
other SUBI. This section shall survive the termination of this Agreement.]
	 
	(r)	 	Definitions.

(i) As used herein:

“Credit Support Annex” means the 1994 ISDA Credit Support Annex between Party A and Party
B dated as of                     .

“Eligible Collateral” means cash, U.S. Treasury Bills and any other forms of collateral
which are reasonably acceptable to Party B, the Servicer and the Indenture Trustee and
have been approved by the Rating Agencies.

[“Fitch” means Fitch, Inc. or its successor.]

“Qualified Counterparty” means a counterparty that (a) has Rated Debt and (b) becomes a
party to this Agreement (or party to an agreement in form and substance satisfactory to
Party B, the Servicer and the Indenture Trustee) in accordance with Part 5(e) of this
Schedule and pursuant to documentation which is not less favorable to Party B than this
Agreement.

“Moody’s” means Moody’s Investors Service, Inc. or its successor.

“Notes” mean the Class       Notes issued by Party B under the Indenture.

[“Origination Trust” means VW Credit Leasing, Ltd., a Delaware statutory trust.]

“Rated Debt” means, with respect to a counterparty, (i) S&P assigns (x) a long-term debt
rating equal to or higher than “A” to the counterparty, and (y) assigns a short-term debt
rating equal to or higher than “A-1” to the counterparty (if the counterparty has both
long-term and short-term debt ratings), (ii) S&P assigns a long-term debt rating equal to
or higher than “A+” to the counterparty (if the counterparty only has a long-term debt
rating), (iii) Moody’s assigns (x) a long-term debt rating equal to or higher than “A1” to
the counterparty, and (y) a short-term debt rating equal to or higher than “P1” to the
counterparty (if the counterparty has both long-term and short-term
debt ratings), (iv) Moody’s assigns a long-term debt rating equal to or higher than
Aa3 to the counterparty (if the counterparty only has a long-term debt rating).

18

 

“Rating Agencies” means S&P, Moody’s [and Fitch].

“Rating Agency Condition” means, with respect to any event or circumstance and each Rating
Agency, either (a) written confirmation by such Rating Agency that the occurrence of such
event or circumstance will not cause it to downgrade, qualify or withdraw its rating
assigned to any of the Notes or (b) that such Rating Agency shall have been given notice
of such event or circumstance at least ten days prior to the occurrence of such event or
circumstance (or, if ten days’ advance notice is impracticable, as much advance notice as
is practicable) and such Rating Agency shall not have issued any written notice that the
occurrence of such event or circumstance will cause it to downgrade, qualify or withdraw
its rating assigned to the Notes.

“S&P” means Standard & Poor’s, a division of the McGraw-Hill Companies Inc. or its
successor.

“Servicer” means VW Credit, Inc. or its successor.

[“SUBI” means a special unit of beneficial interest in the Origination Trust.]

[“Transaction SUBI” means the SUBI held by Party B and pledged to the Indenture Trustee
under the Indenture.]

[“UTI” means the undivided trust interest in the Origination Trust.]

     
Reference is made to that certain Indenture dated as of
              
      ,            (the “Indenture”) among
Party B as the Issuer thereunder and                               , as
Indenture Trustee. Capitalized terms
used but not defined in this Agreement or this Schedule will have the meanings ascribed to them in
the Indenture.

	 	 	 	[VOLKSWAGEN AUTO LEASE TRUST 200[   ]-[   ]]
	 
	 	 	 	[VOLKSWAGEN AUTO LOAN ENHANCED TRUST 200[   ]-[   ]]

	 	 	 
	 

	 	 

By: [Owner Trustee], not in its individual capacity

but solely as owner trustee

19

 

ISDA®

International Swaps and Derivatives Association, Inc.

CREDIT SUPPORT ANNEX

to the Schedule to the

ISDA MASTER AGREEMENT

dated as of
 

between

  (“Party A”)

and

[Volkswagen Auto Lease Trust 200[ ]-[ ]] (“Party B”)

[Volkswagen Auto Loan Enhanced Trust 200[ ]-[ ]]

This Annex supplements, forms part of, and is subject to, the ISDA Master Agreement referred to
above (this “Agreement”), is part of its Schedule and is a Credit Support Document under this
Agreement with respect to Party A.

Accordingly, the parties agree as follows:

Paragraphs 1 - 12. Incorporation

Paragraphs 1 through 12 inclusive of the ISDA Credit Support Annex (Bilateral Form)
(ISDA Agreements Subject to New York Law Only) published in 1994 by the
International Swaps and Derivatives Association, Inc. are incorporated herein by
reference and made a part hereof:

Paragraph 13. Elections and Variables

	(a)	 	Security Interest for “Obligations”. The term “Obligations” as used in this Annex includes
no additional obligations of Secured Party and, for purposes of the definition of Obligations
in Paragraph 12, includes no additional obligations of Pledgor.

	 
	(b)	 	Credit Support Obligations.

	 	(i)	 	Delivery Amount, Return Amount and Credit Support Amount.

	 	(A)	 	“Delivery Amount” has the meaning specified in Paragraph 3(a).

	 
	 	(B)	 	“Return Amount” has the meaning specified in Paragraph 3(b).

 

 

	 	(C)	 	“Credit Support Amount” means, for any Valuation Date, an
amount equal to (x) the Amount required under Paragraph 13(p) (in the case of a
Downgrade Termination Event relating to an action taken by S&P); or (y) Party
B’s Exposure under the Agreement to which this Annex relates (in the case of a
Downgrade Termination Event relating to an action taken by Moody’s or in the
case of a Moody’s Creditwatch Event), in each case as calculated on a monthly
basis by the Valuation Agent. The Credit Support Amount shall be calculated by
reference to the provisions set forth in this Annex which would result in Party
A transferring the greatest amount of Eligible Credit Support to Party B.

	 	(ii)	 	Eligible Collateral. The following items will qualify as “Eligible
Collateral”:

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	 	 	 
	 	 	 	 	Percentage:*	 	Moody’s	 	S&P
	(A)

	 	Cash: US Dollars
in depository
account form.
	 	 
	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(B)

	 	U.S. Treasury Securities:
negotiable debt
obligations issued
by the U.S.
Treasury Department
(“Treasuries”)
having a remaining
maturity of up to
and not more than 1
year.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(C)

	 	Treasuries having a
remaining maturity
of greater than 1
year but not more
than 5 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(D)

	 	Treasuries having a
remaining maturity
of greater than 5
years but not more
than 10 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(E)

	 	Treasuries having a
remaining maturity
of greater than 10
years but not more
than 20 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(F)

	 	Treasuries having a
remaining maturity
of greater than 20
years but not more
than 30 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(G)

	 	Agency Securities:
negotiable debt
obligations of the
Federal National
Mortgage
Association (FNMA),
Federal Home Loan
Mortgage
Corporation
(FHLMC), Federal
Home Loan Banks
(FHLB), Federal
Farm Credit Banks
(FFCB), Student
Loan Marketing
Association (SLMA),
Tennessee Valley
Authority (TVA)
(collectively,
“Agency
Securities”) having
a remaining
maturity of not
more than 1 year.
	 	 	 	[    ]%
	 	[    ]%

2

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	Valuation	 	 	 	 
	 	 	 	 	Percentage:*	 	Moody’s	 	S&P
	 
	 	 	 	 	 	 	 	 
	(H)

	 	Agency Securities
having a remaining
maturity of greater
than 1 year but not
more than 5 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(I)

	 	Agency Securities
having a remaining
maturity of greater
than 5 years but
not more than 10
years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(J)

	 	Agency Securities
having a remaining
maturity of greater
than 10 years but
not more than 20
years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(K)

	 	Agency Securities
having a remaining
maturity of greater
than 20 years but
not more than 30
years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(L)

	 	FHLMC Certificates.
Mortgage
participation
certificates issued
by FHLMC evidencing
undivided interests
or participations
in pools of first
lien conventional
or FHA/VA
residential
mortgages or deeds
of trust,
guaranteed by
FHLMC, and having a
remaining maturity
of not more than 30
years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(M)

	 	FNMA Certificates.
Mortgage-backed
pass-through
certificates issued
by FNMA evidencing
undivided interests
in pools of first
lien mortgages or
deeds of trust on
residential
properties,
guaranteed by FNMA,
having a remaining
maturity of not
more than 30 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(N)

	 	GNMA Certificates.
Mortgage-backed
pass-through
certificates issued
by private
entities,
evidencing
undivided interests
in pools of first
lien mortgages or
deeds of trust on
single family
residences,
guaranteed by the
Government National
Mortgage
Association (GNMA)
with the full faith
and credit of the
United States, and
having a remaining
maturity of not
more than 30 years.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(O)

	 	Commercial Paper.
Commercial Paper
with a rating of at
least P-1 by
Moody’s, at least
F-1 by Fitch and at
least A-1+ by S&P
and having a
remaining maturity
of not more than 30
days.
	 	 	 	[    ]%
	 	[    ]%
	 
	 	 	 	 	 	 	 	 
	(P)

	 	Other. Other items
of Credit Support
approved by each
applicable rating
agency with such
valuation
percentages as
determined by each
applicable rating
agency.
	 	 	 	% to be determined
	 	% to be determined

3

 

 

			
	*	 	The Valuation Percentage shall equal the percentage specified under such Rating
Agency’s name above. If the Class ___ Notes are rated by more than one Rating Agency specified
above, the Valuation Percentage shall equal the lowest of the applicable percentages specified
above.

	 	(iii)	 	Other Eligible Support. Not applicable.

	 
	 	(iv)	 	Thresholds.

	 	(A)	 	“Independent Amount” means for Pledgor: zero.

	 
	 	 	 	“Independent Amount” means for Secured Party: zero

	 	(B)	 	“Threshold” means for Pledgor: zero in the event Party A fails to assign all
of its rights and obligations under the Agreement on or before the thirtieth (30) day
after the date of a Downgrade Termination Event (as described in Part 1(g)(i)(B) of the
Schedule) or a Moody’s Creditwatch Event (as described in Part 1(g)(i)(A) of the
Schedule) continues to exist; otherwise, the Threshold shall be infinite.

	 
	 	(C)	 	“Minimum Transfer Amount” is $_____ for any Delivery Amount of Pledgor,
unless the Pledgor is a Defaulting Party, in which case it is zero, and $_____ for
any Return Amount of the Secured Party, unless the Secured Party is a Defaulting
Party, in which case it is zero.

	 
	 	(D)	 	Rounding: The Delivery Amount will be rounded up to the nearest integral
multiple of $10,000, and the Return Amount will be rounded down to the nearest integral
multiple of $10,000.

	(c)	 	Valuation and Timing.

	 	(i)	 	“Valuation Agent” means the Pledgor; provided, however, that if
an Event of Default has occurred and is continuing with respect to the Pledgor, then
the Secured Party shall be the Valuation Agent. The Value of Posted Credit Support
other than Cash or of any Transfer of Eligible Credit Support or Posted Credit Support
(other than Cash), as the case may be, will be calculated by the Valuation Agent in
accordance with standard market practice using third party sources (such as, by way of
example only, Bloomberg or Reuters).

	 
	 	(ii)	 	“Valuation Date” means the first Local Business Day of each week.

	 
	 	(iii)	 	“Valuation Time” means the close of business in the city in which the
Valuation Agent is located on the Local Business Day before the Valuation Date or date
of calculation, as applicable; provided that the calculations of Value and Exposure
will be made as of approximately the same time on the same date.

	 
	 	(iv)	 	“Notification Time” means 11:00 a.m., New York time, on a Local Business Day.

	(d)	 	Conditions Precedent and Secured Party’s Rights and Remedies. No Specified Conditions apply.

4

 

	 
	(e)	 	Substitution.

	 	(i)	 	“Substitution Date” has the meaning specified in Paragraph 4(d)(ii).

	 
	 	(ii)	 	Consent. The Pledgor must obtain the Secured Party’s prior consent to any
substitution pursuant to Paragraph 4(d) and shall give Secured Party not less than two
(2) Local Business Day’s notice thereof specifying the items of Posted Credit Support
intended for substitution.

	(f)	 	Dispute Resolution.

	 	(i)	 	“Resolution Time” means 1:00 p.m., New York time, on the Local Business Day
following the date on which the notice is given that gives rise to a dispute under
Paragraph 5.

	 
	 	(ii)	 	Value. For the purpose of Paragraphs 5(i)(C) and 5(ii), the Value of Posted
Credit Support other than Cash will be calculated based upon the mid-point between the
bid and offered purchase rates or prices for that Posted Credit Support as reported on
the Bloomberg electronic service as of the Resolution Time, or if unavailable, as
quoted to the Valuation Agent as of the Resolution Time by a dealer in that Posted
Credit Support of recognized standing selected in good faith by the Valuation Agent,
which calculation shall include any unpaid interest on that Posted Credit Support to
the extent it is the established practice in the relevant market.

	 
	 	(iii)	 	Alternative. The provisions of Paragraph 5 will apply.

	(g)	 	Holding and Using Posted Collateral.

	 	(i)	 	Eligibility to Hold Posted Collateral; Custodians. Secured Party will not be
entitled to hold Posted Collateral itself, and instead the Secured Party will be
entitled to hold Posted Collateral through the Indenture Trustee which Posted
Collateral (i) shall not be commingled or used with any other asset held by the
Indenture Trustee but shall be held in a separate account for this purpose only and
(ii) shall not be transferred to any other person or entity but Party A pursuant to the
provisions herein except (x) in any case contemplated by Paragraph 8(a) of this Annex
with respect to Party A or (y) as directed by Party A.

	 
	 	(ii)	 	Use of Posted Collateral. The provisions of Paragraph 6(c) will not apply to
Secured Party and without prejudice to Secured Party’s rights under Paragraph
8 of the Credit Support Annex, Secured Party will not take any action specified in
such Section 6(c).

5

 

	(h)	 	Interest Amount.

	 	(i)	 	Interest Rate. The “Interest Rate” means, for any day, the rate set forth for
that day opposite the caption “Federal Funds (Effective)” in the weekly statistical

	 	 	 	release designated “H.15(519)”, or any successor publication, published by the Board
of Governors of the Federal Reserve System.

	 	(ii)	 	Transfer of Interest Amount. The Transfer of the Interest Amount, if any, will
be made on the first Local Business Day of each calendar month and on any Local
Business Day that Posted Collateral in the form of Cash is Transferred to the Pledgor
pursuant to Paragraph 3(b). Any Interest Amount paid by Party B to Party A hereunder
with respect to cash collateral posted by Party A shall not exceed the actual amount of
interest received by Party B with respect thereto.

	 
	 	(iii)	 	Alternative to Interest Amount. The provisions of Paragraph 6(d)(ii) will apply.

	(i)	 	Additional Representation(s). Not applicable.

	 
	(j)	 	Other Eligible Support and Other Posted Support. Not applicable.

	 
	(k)	 	Demands and Notices. All demands, specifications and notices under this Annex will be made
to a party as follows unless otherwise specified from time to time by that party for purposes
of this Annex in a written notice given to the other party:

	 
	 	 	To Pledgor:

	 
	 	 	To Secured Party:

	 
	(l)	 	Addresses for Transfers.

	 
	(i)	 	For each Transfer hereunder to Pledgor:

	 	(ii)	 	For each Transfer hereunder to Secured Party:

	(m)	 	Agreement as to Single Secured Party and Pledgor. Party A and Party B agree that,
notwithstanding anything to the contrary in the recital of this Annex, Paragraph 1(b) or
Paragraph 2 of the definitions in Paragraph 12, (a) the term “Secured Party” as used in this
Annex means only Party B, (b) the term “Pledgor” as used in this Annex means only Party A, (c)
only Party A makes the pledge and grant in Paragraph 2, the acknowledgment in the final
sentence of Paragraph 8(a) and the representations in Paragraph 9, (d) only Party A shall be
required to post Eligible Credit Support hereunder and (e) the Events of Default set forth in
Paragraph 7(i) will not apply to Party B. Party A also agrees that it shall pay all costs of
transferring Eligible Credit Support required to be delivered by Party A hereunder.

	 
	(n)	 	No Gross Up. The Secured Party will have no obligation to pay any additional amount of the
kind specified in Section 2(d)(i)(4) of the Agreement with respect to any Interest Amounts or
Distributions.

6

 

	(o)	 	Elimination of Demand Requirements. The parties agree that the phrase “upon a demand made by
the Secured Party” shall be deleted from Paragraph 3(a) of this Credit Support Annex.

	 
	(p)	 	S&P Credit Support Amount. With respect to a Party A Downgrade relating to an action taken
by S&P, the “Credit Support Amount” shall mean with respect to a Pledgor on a Valuation Date
the sum of :

	 	(i)	 	the greater of MTM and $0, plus

	 
	 	(ii)	 	VB

	 
	 	Where:

	 
	 	“MTM” means Secured Party’s Exposure;

	 
	 	“VB” means the Notional Amount (as defined in the Confirmation for each outstanding
Transaction under this Agreement) times the relevant percentage set out in Table A below:

TABLE A

Volatility Buffer

	 	 	 	 	 	 	 
	 	 	 	 	Less than 10 years,	 	 
	 	 	 	 	but more than 5	 	Greater than 10
	 	 	Less than 5 years	 	years to	 	years to
	 	 	to Termination Date	 	Termination Date of	 	Termination Date of
	Counterparty	 	of the Transaction.	 	the Transaction.	 	the Transaction.
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is at
least equal to
“A-2”

	 	[   ]%
	 	[   ]%
	 	[   ]%
	 
	 	 	 	 	 	 
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is
equal to “A-3”

	 	[   ]%
	 	[   ]%
	 	[   ]%
	 
	 	 	 	 	 	 
	The rating by S&P
of Party A’s
long-term
unsecured,
unsubordinated
obligations is
equal to or less
than “BB+”

	 	[   ]%
	 	[   ]%
	 	[   ]%

7

 

Exposure.

The Parties agree that in the event of a Downgrade Termination Event relating to an action taken by
S&P, the Valuation Agent shall verify its calculation of the Secured Party’s Exposure on a monthly
basis by seeking two quotations from Reference Market-makers at the end of each
month. If 2 Reference Market-makers are not available to provide a quotation, then fewer than
2 Reference Market-makers may be used for such purpose. If no Reference Market-makers are
available, then the Valuation Agent’s estimates at mid-market will be used. The Valuation Agent
may not obtain the quotations referred to above from the same person in excess of four times during
any 12 month period. Where more than 1 quotation is obtained, the quotation representing the
greatest amount of Exposure shall be used by the Valuation Agent. In the event the verification
procedures set forth above indicate that there is a deficiency in the amount of Eligible Collateral
that has been posted to the Secured Party, the Pledgor shall post the amount of Eligible Collateral
necessary to cure such deficiency to the Secured Party within three Local Business Days.

8

 

IN WITNESS WHEREOF the parties have executed this Credit Support Annex as of the date hereof.

	 	 	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 
	 	 	 	 
	 	 	 	 
	 	 	 
	
By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:  	 	 	 

9

 

	 	 	 	 	 

SWAP TRANSACTION CONFIRMATION

	 	 	 
	Date:
	 	____________, 200[  ]
	 
	 	 
	To:
	 	[Volkswagen Auto Loan Enhanced Trust 200[  ]-[  ]]

	 
	 	[Volkswagen Auto Lease Trust 200[   ]-[   ]] (“Party B”)

	 
	 	c/o _____________, as Owner Trustee

	 
	 	 
	 
	 	Attention:  _______________
	 
	 	Telephone:   ______________
	 
	 	Facsimile:    ______________
	 
	 	 
	 
	 	  (“Party A”)
	 
	 	 
	From:
	 	 

	 
	 	 
	Ref. No.
	 	 

Dear Sir or Madam:

The purpose of this letter (this “Confirmation”) is to confirm the terms and conditions of the
Transaction entered into between us on the Trade Date specified below (the “Transaction”). This
Confirmation constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below.

1. The definitions and provisions contained in (i) the 2000 ISDA Definitions (the “ISDA
Definitions”), as published by the International Swaps and Derivatives Association, Inc, and (ii)
the Indenture dated as of                                          (the “Indenture”) between Party B and
                                         relating to the issuance by Party B of certain debt obligations, are
incorporated into this Confirmation. In the event of any inconsistency between the ISDA
Definitions and this Confirmation, this Confirmation will govern. References herein to a
“Transaction” shall be deemed to be references to a “Swap Transaction” for purposes of the ISDA
Definitions. Capitalized terms used but not defined herein have the meanings ascribed to them in
the Indenture.

 

2. The terms of the particular Transaction to which the Confirmation relates are as follows:

	 	 	 
	Transaction Type:	 	Interest Rate Swap 
	 
	 	 
	Currency for Payments:

	 	U.S. Dollars
	 
	 	 
	Notional Amount:

	 	For the Initial Calculation Period, the Notional
Amount shall be equal to USD                     . For each
subsequent Calculation Period, the Notional Amount
shall be equal to the aggregate Note Balance of the
Class ___ Notes on the first day of such Calculation
Period. With respect to any Payment Date, the
aggregate Note Balance of the Class ___ Notes will
be determined using the Servicer Certificate issued
on the Determination Date immediately preceding the
Payment Date (giving effect to any reductions of the
Note Balance of the Class ___ Notes reflected in
such Servicer Certificate).
	 
	 	 
	Initial Calculation Period:

	 	                    , 200[   ] to but excluding                     , 200__.
	 
	 	 
	Term:
	 	 
	Trade Date:

	 	                    , 200[   ]
	Effective Date:

	 	                    , 200[   ]
	Termination Date:

	 	The earlier of (i) [insert legal final maturity date
of the Class ___  Notes] and (ii) the date on which
the Note Balance of the Class ___ Notes is reduced
to zero.
	 
	 	 
	Fixed Amounts:
	 	 
	Fixed Rate Payer:

	 	Party B
	Calculation Period End Dates:

	 	Monthly on the                      of each month, commencing
                    , 200[   ], through and including the
Termination Date; No Adjustment.
	Payment Dates:

	 	Monthly on the [20th] of each month,
commencing                     , 200[   ], through and
including the Termination Date.
	Business Day Convention:

	 	Following
	Business Day:

	 	[London,] New York, Delaware, Illinois and Michigan
	Fixed Rate:

	 	___ %
	Fixed Rate Day Count
Basis:

	 	30/360
	 
	Floating Amounts:
	 	 

 

	 	 	 
	 
	 	 
	Floating Rate Payer:

	 	Party A
	Calculation Period End 

Dates:

	 	Monthly on the ___ of each month, commencing
                    , 200[   ], through and including the
Termination Date, subject to adjustment in
accordance with the Following Business Day
Convention.
	Payment Dates:

	 	Monthly on the [20th] of each month,
commencing                     , 200[   ], through and including the Termination Date.
	 
	 	 
	Business Day Convention:
	 	 
	Business Day:

	 	Following
	 
	 	 
	For Payment Dates: 

	 	[London,] New York, Delaware, Illinois and Michigan
	
For Reset Dates:

	 	London
	 
	 	 
	Floating Rate Option:

	 	USD-LIBOR-BBA
	Designated Maturity:

	 	1 Month
	Spread:

	 	 

	Floating Rate Day Count:

	 	 

	Basis:

	 	 
	Reset Dates:

	 	Actual/360
	Compounding:

	 	The first day of each Calculation Period. 

Inapplicable

3. The additional provisions of this Confirmation are as follows:

	 	 	 
	Calculation Agent:

	 	Party [B]
	 
	 	 
	Payments to Party A:
	 	 
	 
	 	 
	Payments to Party B:
	 	 

4. Documentation

This Confirmation supplements, forms a part of, and is subject to, the 1992 ISDA Master Agreement
dated as of                     ,                      (including the Schedule thereto) as amended and supplemented
from time to time (the “Agreement”) between you and us. All provisions

 

contained in the Agreement govern this Confirmation except as expressly modified herein. Unless otherwise provided in the Agreement, this Confirmation is governed by the laws of the State of New
York.

Please confirm that the foregoing correctly sets forth the terms of our agreement by executing a
copy of this Confirmation and returning it to us.

	 	 	 	 	 
	 	Very truly yours,

 	 
	 	

By:  	 	 
	 	 	Name:  	 	 
	 	 	Title:  	 	 
	 

Accepted and confirmed as of the date first above written:

	 	 	 	 	 
	[VOLKSWAGEN AUTO LEASE TRUST 200[ ]-[ ]]

[VOLKSWAGEN AUTO LOAN ENHANCED TRUST 200[ ]-[ ]]

 	 	 
	By:  	[Owner Trustee]
 	 	 
	 
	 	 	 
	By:  	 	 	 
	 	Name:  	 	 	 
	 	Title:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00160-of-00352.parquet"}]]