Document:

Exhibit 10.3

 

 

SECOND-TIER SALE AGREEMENT

 

between

 

FORD CREDIT AUTO LEASE TWO LLC,

acting with respect to its Series of 
 limited liability company interests designated as

the “2012-A Series”, as Depositor

 

and

 

FORD CREDIT AUTO LEASE TRUST 2012-A,

as Issuer

 

Dated as of February 1, 2012

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE AND   DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage and Definitions
    	
1
    
	
ARTICLE II SALE OF THE   SECOND-TIER ASSETS
    	
2
    
	
Section 2.1.
    	
Sale of the Second-Tier Assets
    	
2
    
	
Section 2.2.
    	
Closing; Further Assignments
    	
2
    
	
Section 2.3.
    	
Intent; Savings Clause
    	
2
    
	
ARTICLE III REPRESENTATIONS   AND WARRANTIES
    	
3
    
	
Section 3.1.
    	
Representations and Warranties of the Issuer
    	
3
    
	
Section 3.2.
    	
Representations and Warranties of the Depositor
    	
4
    
	
Section 3.3.
    	
Representations of the Depositor and the Issuer
    	
5
    
	
ARTICLE IV CONDITIONS
    	
5
    
	
Section 4.1.
    	
Conditions to Obligation of the Issuer
    	
5
    
	
Section 4.2.
    	
Conditions to Obligation of the Depositor
    	
5
    
	
Section 4.3.
    	
Deemed Satisfaction of Conditions
    	
5
    
	
ARTICLE V COVENANTS OF THE   DEPOSITOR
    	
6
    
	
Section 5.1.
    	
Filing and Maintenance of Financing Statements and Security   Interests
    	
6
    
	
Section 5.2.
    	
Other Liens or Interests
    	
6
    
	
Section 5.3.
    	
Indemnification
    	
6
    
	
Section 5.4.
    	
Reserve Initial Deposit
    	
7
    
	
Section 5.5.
    	
Obligations of the Depositor
    	
7
    
	
ARTICLE VI MISCELLANEOUS   PROVISIONS
    	
7
    
	
Section 6.1.
    	
Amendment
    	
7
    
	
Section 6.2.
    	
Notices
    	
8
    
	
Section 6.3.
    	
Costs and Expenses
    	
8
    
	
Section 6.4.
    	
Third-Party Beneficiaries
    	
9
    
	
Section 6.5.
    	
No Petition
    	
9
    
	
Section 6.6.
    	
Limited Recourse
    	
9
    
	
Section 6.7.
    	
Subordination
    	
9
    
	
Section 6.8.
    	
GOVERNING LAW
    	
10
    
	
Section 6.9.
    	
Submission to Jurisdiction
    	
10
    
	
Section 6.10.
    	
WAIVER OF JURY TRIAL
    	
10
    
	
Section 6.11.
    	
Severability
    	
10
    
	
Section 6.12.
    	
Counterparts
    	
10
    
	
Section 6.13.
    	
Headings
    	
10
    
	
Section 6.14.
    	
No Waiver; Cumulative Remedies
    	
10
    
	
Section 6.15.
    	
Issuer Obligation
    	
11
    

 

i

 

SECOND-TIER SALE AGREEMENT, dated and effective as of February 1, 2012 (this “Agreement”), between FORD CREDIT AUTO LEASE TWO LLC, a Delaware limited liability company, acting with respect to its Series of limited liability company interests designated as the “2012-A Series”, as Depositor, and FORD CREDIT AUTO LEASE TRUST 2012-A , a Delaware statutory trust, as Issuer.

 

BACKGROUND

 

On or prior to the date of this Agreement, CAB East LLC, a Delaware limited liability company (“CAB East”), CAB West LLC, a Delaware limited liability company (“CAB West”) and FCALM, LLC, a Delaware limited liability company (“FCALM, LLC” and, together with CAB East and CAB West, the “Titling Companies”) issued (or, in the case of FCALM, consented to the issuance) to Ford Credit a note designated as the “2012-A Exchange Note” having an initial aggregate outstanding principal balance of $1,211,597,938.14 a fixed interest rate of 1.62% and a stated maturity date of October 15, 2016.

 

Ford Credit and the Titling Companies have also designated the 2012-A Reference Pool in respect of the 2012-A Exchange Note and the Collateral Leases and Collateral Leased Vehicles comprising the 2012-A Reference Pool.

 

Ford Credit has sold the 2012-A Exchange Note to the Depositor pursuant to a First-Tier Sale Agreement, dated as of the date of this Agreement (the “First-Tier Sale Agreement”).

 

The Depositor wishes to sell the 2012-A Exchange Note and certain related property and rights to the Issuer on the terms and conditions of this Agreement.

 

ARTICLE I
  USAGE AND DEFINITIONS

 

Section 1.1.                                 Usage and Definitions.  Capitalized terms used but not otherwise defined in this Agreement are defined in Appendix 1 to the Exchange Note Supplement to the Credit and Security Agreement (as defined below), dated as of February 1, 2012 (the “Exchange Note Supplement”), among the Titling Companies, as Borrowers, U.S. Bank National Association (“U.S. Bank”), as Administrative Agent, HTD Leasing LLC (“HTD”), as Collateral Agent, and Ford Motor Credit Company LLC (“Ford Credit”), as Lender and Servicer.  Capitalized terms used but not otherwise defined in this Agreement or in Appendix 1 to the Exchange Note Supplement are defined in Appendix A to the Amended and Restated Credit and Security Agreement, dated as of December 1, 2006 (the “Credit and Security Agreement”), among the Titling Companies, as Borrowers, U.S. Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and Servicer.  Appendix 1 and Appendix A also contain rules as to usage applicable to this Agreement and are incorporated by reference into this Agreement.

 

 

ARTICLE II
 SALE OF THE SECOND-TIER ASSETS

 

Section 2.1.                                 Sale of the Second-Tier Assets.

 

(a)                                 Effective as of the 2012-A Closing Date and immediately after the transaction pursuant to the First-Tier Sale Agreement, and immediately before the transactions contemplated by the Trust Agreement and the Indenture, the Depositor sells and assigns to the Issuer, without recourse, the Second-Tier Assets.

 

(b)                                 In consideration for the Second-Tier Assets, the Issuer will pay to the Depositor, without recourse, all right, title and interest of the Issuer, whether now owned or hereafter acquired, in, to and under the Notes and the rights to distributions under Section 8.2 of the Indenture, as payment for the 2012-A Exchange Note.  The Second-Tier Assets will become the property and rights of the Issuer.

 

Section 2.2.                                 Closing; Further Assignments.

 

(a)                                 The sale and assignment of the Second-Tier Assets will take place on the 2012-A Closing Date concurrently with the closings under the First-Tier Sale Agreement and the Indenture.

 

(b)                                 The Depositor acknowledges that the Issuer will, pursuant to the Indenture, assign and pledge the Second-Tier Assets and certain other property and rights to the Indenture Trustee for the benefit of the 2012-A Secured Parties.  The Depositor consents to such assignment and pledge.

 

(c)                                  The Issuer acknowledges the appointment of Ford Credit as Servicer with respect to the Collateral Specified Interests pursuant to the Servicing Agreement and as Servicer with respect to the 2012-A Reference Pool pursuant to the Servicing Supplement.

 

Section 2.3.                                 Intent; Savings Clause.  It is the intention of the Depositor and the Issuer that (i) the sale and assignment pursuant to Section 2.1 constitute an absolute sale of the Second-Tier Assets, including all monies paid thereon and all monies due thereon on or after the Cutoff Date, conveying good title to the Second-Tier Assets free and clear of any Lien other than Permitted Liens, from the Depositor to the Issuer and (ii) the Second-Tier Assets not be a part of the Depositor’s estate in the event of a bankruptcy or insolvency of the Depositor.  If, notwithstanding the intention of the Depositor and the Issuer, such sale and assignment is deemed to be a pledge in connection with a financing or is otherwise deemed not to be a sale, the Depositor Grants, and the parties intend that the Depositor Grants, to the Issuer a security interest in the Second-Tier Assets and the performance by the Depositor of the obligation by the Depositor to pay to the Issuer all amounts received with respect to the 2012-A Exchange Note, and in such event, this Agreement will constitute a security agreement under applicable law and the Issuer will have all of the rights and remedies of a secured party and creditor under the UCC.

 

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ARTICLE III
 REPRESENTATIONS AND WARRANTIES

 

Section 3.1.                                 Representations and Warranties of the Issuer.  The Issuer represents and warrants to the Depositor as of the date of this Agreement and as of the 2012-A Closing Date:

 

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

 

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

 

(c)                                  No Conflicts and No Violation.  The consummation of the transactions contemplated by this Agreement will not (i) conflict with or result in a breach of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument under which the Issuer is a debtor or guarantor, (ii) result in the creation or imposition of any Lien upon any of the properties or assets of the Issuer pursuant to the terms of any such indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument (other than this Agreement), (iii) violate the Trust Agreement, or (iv) violate any law or, to the Issuer’s knowledge, any order, rule or regulation applicable to the Issuer of any Governmental Authority having jurisdiction over the Issuer or its properties, in each case, which conflict, breach, default, Lien or violation would reasonably be expected to have a material adverse effect on the Issuer’s ability to perform its obligations under this Agreement or any other 2012-A Basic Document to which it is a party.

 

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

 

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validity and enforceability of, the 2012-A Basic Documents or the Notes, or materially and adversely affect the tax treatment of the Issuer or the Notes.

 

Section 3.2.                                 Representations and Warranties of the Depositor.  The Depositor represents and warrants to the Issuer as of the date of this Agreement and as of the 2012-A Closing Date:

 

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

 

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

 

(c)                                  No Conflicts and No Violation.  The consummation of the transactions contemplated by this Agreement, and the fulfillment of the terms of this Agreement, will not (i) conflict with or result in a breach of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument under which the Depositor is a debtor or guarantor, (ii) result in the creation or imposition of any Lien upon any of the properties or assets of the Depositor pursuant to the terms of any such indenture, mortgage, deed of trust, loan agreement, guarantee or similar agreement or instrument (other than this Agreement), (iii) violate the certificate of formation of the Depositor or the Limited Liability Company Agreement or (iv) violate any law or, to the Depositor’s knowledge, any order, rule or regulation applicable to the Depositor of any Governmental Authority having jurisdiction over the Depositor or its properties, in each case, which conflict, breach, default, Lien or violation would reasonably be expected to have a material adverse effect on the Depositor’s ability to perform its obligations under this Agreement.

 

(d)                                 No Proceedings.  To the Depositor’s knowledge, there are no proceedings or investigations pending or overtly threatened in writing before any Governmental Authority having jurisdiction over the Depositor or its properties (i) asserting the invalidity of this Agreement, (ii) seeking to prevent the consummation of any of the transactions contemplated by this Agreement, (iii) seeking any determination or ruling that would reasonably be expected to have a material adverse effect on the Depositor’s ability to perform its obligations under this Agreement (iv) that would reasonably be expected to (A) affect the treatment of the Notes as indebtedness for U.S. federal income tax purposes, (B) be deemed to cause a taxable exchange of the Notes for U.S. federal income tax purposes or (C) cause the Issuer to be treated as an association or publicly traded partnership taxable as a corporation for U.S. federal income tax purposes, in each case, other than such proceedings that, to the Depositor’s knowledge, would not reasonably be expected

 

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to have a material adverse effect on the Depositor, materially and adversely affect the performance by the Depositor of its obligations under, or the validity and enforceability of, the 2012-A Basic Documents or the Notes, or materially and adversely affect the tax treatment of the Issuer or the Notes.

 

(e)                                  Investment Company Act.  The Depositor is not an “investment company” or a company “controlled by an investment company” within the meaning of the Investment Company Act.

 

Section 3.3.                                 Representations of the Depositor and the Issuer.  The respective agreements, representations, warranties and other statements by the Depositor and the Issuer set forth in or made pursuant to this Agreement will remain in full force and effect and will survive the closing under Section 2.2.

 

ARTICLE IV
 CONDITIONS

 

Section 4.1.                                 Conditions to Obligation of the Issuer.  The obligation of the Issuer to purchase the Second-Tier Assets as set forth in Section 2.1 is subject to the satisfaction of the following conditions:

 

(a)                                 Representations and Warranties True.  The representations and warranties of the Depositor contained in Section 3.2 will be true and correct on the 2012-A Closing Date, and the Depositor will have performed on or prior to the 2012-A Closing Date all obligations to be performed by the Depositor under this Agreement on or prior to the 2012-A Closing Date.

 

(b)                                 Delivery of 2012-A Exchange Note.  The Depositor has delivered to the Issuer the 2012-A Exchange Note, registered in the name of “Ford Credit Auto Lease Trust 2012-A “ or its assignee or endorsed in blank by an effective endorsement.

 

(c)                                  Documents to be Delivered by the Depositor.  On the 2012-A Closing Date, the Depositor will deliver such other documents as the Issuer may reasonably request.

 

(d)                                 Other Transactions.  The transactions contemplated by the Credit and Security Agreement, the Exchange Note Supplement, the First-Tier Sale Agreement and the Indenture will be consummated on or prior to the 2012-A Closing Date.

 

Section 4.2.                                 Conditions to Obligation of the Depositor.  The obligation of the Depositor to sell the 2012-A Exchange Note to the Issuer as set forth in Section 2.1 is subject to each representation and warranty of the Issuer as set forth in Section 3.1 being true and correct on the 2012-A Closing Date, and each obligation to be performed by the Issuer under this Agreement on or prior to the 2012-A Closing Date having been performed on or prior to the 2012-A Closing Date.

 

Section 4.3.                                 Deemed Satisfaction of Conditions.  Upon the transfer (or the purported transfer) of the Second-Tier Assets to, and the acceptance (or the purported acceptance) of the Second-Tier Assets by, the Issuer, all of the conditions set forth in this Article IV will be deemed to have been satisfied.

 

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ARTICLE V
 COVENANTS OF THE DEPOSITOR

 

Section 5.1.                                 Filing and Maintenance of Financing Statements and Security Interests.

 

(a)                                 The Depositor will file financing statements and continuation statements in the manner and place required by Applicable Law to preserve, maintain and protect the interest of the Issuer in the Second-Tier Assets.  The Depositor will deliver to the Issuer file-stamped copies of, or filing receipts for, any financing statement and continuation statement promptly upon such document becoming available following filing.

 

(b)                                 The Depositor authorizes the Issuer to file any financing or continuation statements, and amendments to such statements, in all jurisdictions and with all filing offices as the Issuer may determine are necessary or advisable to preserve, maintain and protect the interest of the Issuer in the Second-Tier Assets.  Such financing and continuation statements may describe the Second-Tier Assets in any manner as the Issuer may reasonably determine to ensure the perfection of the interest of the Issuer in the Second-Tier Assets.  The Issuer will deliver to the Depositor file-stamped copies of, or filing receipts for, any financing statement and continuation statement promptly upon such document becoming available following filing.

 

(c)                                  The Depositor will give the Issuer at least 60 days’ prior notice of any relocation of its chief executive office or change in its corporate structure, form of organization or jurisdiction of organization if, as a result of such relocation or change, Section 9-307 of the UCC could require the filing of a new financing statement or an amendment to a previously filed financing or continuation statement and will promptly file any such new financing statement or amendment.  The Depositor will maintain its chief executive office within the United States and will maintain its jurisdiction of organization in only one State.

 

(d)                                 The Depositor will not change its name in any manner that could make any financing statement or continuation statement filed in accordance with this Section 5.1 seriously misleading within the meaning of Section 9-506 of the UCC, unless it has given the Depositor at least five days’ prior notice of such change and promptly files appropriate amendments to all previously filed financing statements.

 

Section 5.2.                                 Other Liens or Interests.  Except for the sales and assignments under this Agreement, the Depositor will not sell, contribute, pledge, assign, transfer or allow to be issued any Second-Tier Asset to any other Person, or grant, create, incur, assume or suffer to exist any Lien on any interest therein, and the Depositor will defend the right, title, and interest of the Issuer in, to and under the Second-Tier Assets against all claims of third parties claiming through or under the Depositor.  However, the Depositor’s obligations under this Section 5.2 with respect to the 2012-A Exchange Note will terminate upon the payment in full of the 2012-A Exchange Note pursuant to the Credit and Security Agreement and the Exchange Note Supplement.

 

Section 5.3.                                 Indemnification.  The Depositor will be liable under this Agreement only to the extent of the obligations specifically undertaken by the Depositor under this Agreement, and agrees to the following:

 

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(a)                                 The Depositor will indemnify, defend and hold harmless the Issuer, and its officers, directors, employees and agents, from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or imposed upon the Issuer through the willful misconduct, bad faith or negligence of the Depositor in the performance of its duties under this Agreement or by reason of reckless disregard of the Depositor’s obligations and duties under this Agreement.

 

(b)                                 Promptly upon receipt by the Issuer, or any of its officers, directors, employees and agents, of notice of the commencement of any suit, action, claim, proceeding or governmental investigation against it, the Issuer will, if a claim in respect of such suit, action, claim, proceeding or investigation is to be made against the Depositor under this Section 5.3, notify the Depositor of the commencement of such suit, action, claim, proceeding or investigation.  The Depositor may participate in and assume the defense and settlement of any such suit, action, claim, proceeding or investigation at its expense, and no settlement of such suit, action, claim, proceeding or investigation may be made without the approval of the Depositor and the Issuer, which approvals will not be unreasonably withheld or delayed.  The Depositor’s obligations under this Section 5.3 will include reasonable fees and expenses of counsel and expenses of litigation.  After notice from the Depositor to the Issuer of the Depositor’s intention to assume the defense of such suit, action, claim, proceeding or investigation with counsel reasonably satisfactory to the Issuer, and so long as the Depositor so assumes the defense of such suit, action, claim, proceeding or investigation in a manner reasonably satisfactory to the Issuer, the Depositor will not be liable for any expenses of counsel to the Issuer unless there is a conflict between the interests of the Depositor and the Issuer, in which case the Depositor will pay for the separate counsel to the Issuer.

 

(c)                                  If the Depositor makes any indemnity payments pursuant to this Section 5.3 and the Issuer thereafter collects any of such amounts from others, the Issuer will promptly repay such amounts to the Depositor, without interest.

 

(d)                                 The indemnity obligations set forth in Section 5.3(a) will be in addition to any obligation that the Depositor may otherwise have and will survive the termination of this Agreement.

 

Section 5.4.                                 Reserve Initial Deposit.  On the 2012-A Closing Date, the Depositor will deposit, or cause to be deposited, the Reserve Initial Deposit into the Reserve Account from the net proceeds of the sale of the Notes.

 

Section 5.5.                                 Obligations of the Depositor.  The obligations of the Depositor under this Agreement will not be affected by reason of any invalidity, illegality or irregularity of the 2012-A Exchange Note or any Collateral Lease or Collateral Leased Vehicle included in the 2012-A Reference Pool.

 

ARTICLE VI
 MISCELLANEOUS PROVISIONS

 

Section 6.1.                                 Amendment.

 

(a)                                 This Agreement may be amended by the Depositor and the Issuer, with prior notice by the Depositor to the Rating Agencies, for any purpose if either (i) the Depositor or the Issuer delivers an Opinion of Counsel to the Issuer, the Owner Trustee and the Indenture Trustee, in form

 

7

 

reasonably satisfactory to them, to the effect that such amendment will not adversely affect the interests of the Noteholders in any material respect or (ii) the consent of the Noteholders of a majority of the Note Balance of each Class of Notes Outstanding adversely affected in any material respect is obtained (with each affected Class voting separately, except that all Noteholders of Class A Notes will vote together as a single class).

 

(b)                                 If the consent of the Noteholders is required, they do not need to approve the particular form of any proposed amendment so long as their consent approves the substance of the proposed amendment.

 

(c)                                  Promptly upon the execution of any amendment in accordance with this Section 6.1, the Sponsor will deliver a copy of such amendment to the Indenture Trustee and each Rating Agency.

 

Section 6.2.                                 Notices.

 

(a)                                 All notices, requests, demands, consents, waivers or other communications to or from the parties to this Agreement must be in writing and will be deemed to have been given:

 

(i)                                     upon delivery or, in the case of a letter mailed by registered first class mail, postage prepaid, three days after deposit in the mail;

 

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

 

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

 

(iv)                              in the case of an electronic posting to a password-protected website to which the recipient has been provided access, upon delivery (without the requirement of confirmation of receipt) of an email to such recipient stating that such electronic posting has occurred.

 

Any such notice, request, demand, consent or other communication must be delivered or addressed as set forth on Schedule A to the Indenture or at such other address as any party may designate by notice to the other parties.

 

(b)                                 Any notice required or permitted to be mailed to a Noteholder (i) in the case of Definitive Notes, must be sent by overnight delivery, mailed by registered first class mail, postage prepaid, or sent by fax, to the address of such Person as shown in the Note Register or (ii) in the case of Book-entry Notes, must be delivered pursuant to the applicable procedures of the Clearing Agency.  Any notice so mailed within the time prescribed in this Agreement will be conclusively presumed to have been properly given, whether or not the Noteholder receives such notice.

 

Section 6.3.                                 Costs and Expenses.  The Depositor will pay all expenses incurred in the performance of its obligations under this Agreement and all reasonable out-of-pocket costs and expenses of the Issuer in connection with the perfection against third parties of the Issuer’s right,

 

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title and interest in and to the Second-Tier Assets and the enforcement of any obligation of the Depositor under this Agreement.

 

Section 6.4.                                 Third-Party Beneficiaries.  This Agreement will inure to the benefit of and be binding upon the parties to this Agreement.  The Indenture Trustee for the benefit of the 2012-A Secured Parties will be a third-party beneficiary of this Agreement entitled to enforce this Agreement against the Depositor.  Except as otherwise provided in this Agreement, no other Person will have any right or obligation under this Agreement.

 

Section 6.5.                                 No Petition.  Each party to this Agreement covenants that for a period of one year and one day (or, if longer, any applicable preference period) after payment in full of the Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all holders of any other Securities (as defined in the related Titling Company Agreement) the payments on which are derived in any material part from amounts received with respect to any Titling Company Assets (as defined in the applicable Titling Company Agreements), it will not institute against, or join any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the 2012-A Exchange Note, the Notes, this Agreement or any of the other 2012-A Basic Documents and agrees it will not cooperate with or encourage others to file a bankruptcy petition against the Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the Collateral Specified Interest Certificates during the same period.

 

Section 6.6.                                 Limited Recourse.  The Depositor and the Issuer agree that any claim that the Depositor  or the Issuer may seek to enforce against each other is limited to the Second-Tier Assets only and does not represent a claim against the assets of the Depositor or the Issuer as a whole or any assets other than the Second-Tier Assets.

 

Section 6.7.                                 Subordination.

 

(a)                                 The Depositor and the Issuer agree that any claim that the Depositor or the Issuer may seek to enforce at any time against any assets of the Depositor or the Issuer other than the Second-Tier Assets will be subordinate to the payment in full of all other claims with respect to such other assets.  However, this Section 6.7(a) will not limit, subordinate or otherwise modify any claims against the Depositor or the Issuer with respect to any right to indemnification, commitment to repurchase or other obligation of the Depositor or the Issuer relating to:

 

(i)                                     any of the assets related to the Second-Tier Assets;

 

(ii)                                  any related credit enhancement;

 

(iii)                               any transactions entered into in connection with the 2012-A Exchange Note (or the beneficial interest therein);

 

(iv)                              any administrative services performed in connection with the Second -Tier Assets;

 

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(v)                                 any related servicing obligation; or

 

(vi)                              any obligation to any Person acting as trustee, registrar or administrator (including as Titling Company Registrar, owner trustee or indenture trustee).

 

(b)                                 The Depositor agrees that any claim that the Depositor may seek to enforce against the Issuer or any of its assets will be subordinate to the payment in full of the principal of and interest on the Notes.

 

(c)                                  The parties to this Agreement intend that Sections 6.7(a) and (b) constitute an enforceable subordination agreement under Section 510(a) of the Bankruptcy Code.

 

Section 6.8.                                 GOVERNING LAW.  THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.

 

Section 6.9.                                 Submission to Jurisdiction.  The parties submit to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for purposes of all legal proceedings arising out of or relating to this Agreement. The parties irrevocably waive, to the fullest extent they may do so, any objection that they may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 6.10.                          WAIVER OF JURY TRIAL.  EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.

 

Section 6.11.                          Severability.  If any of the covenants, agreements or terms of this Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the remaining covenants, agreements or terms of this Agreement and will in no way affect the validity, legality or enforceability of the remaining Agreement.

 

Section 6.12.                          Counterparts.  This Agreement may be executed in any number of counterparts.  Each counterpart will be an original, and all counterparts will together constitute one and the same instrument.

 

Section 6.13.                          Headings.  The headings in this Agreement are included for convenience only and will not affect the meaning or interpretation of this Agreement.

 

Section 6.14.                          No Waiver; Cumulative Remedies.  No failure or delay of the Depositor in exercising any power, right or remedy under this Agreement will operate as a waiver.  No single or partial exercise of any power, right or remedy precludes any other or further exercise of such power, right or remedy or the exercise of any other power, right or remedy.  The powers, rights and remedies provided in this Agreement are in addition to any powers, rights and remedies provided by law.

 

10

 

Section 6.15.                          Issuer Obligation.  No recourse may be taken, directly or indirectly, with respect to the obligations of the Issuer or the Owner Trustee under this Agreement or any certificate or other writing delivered in connection with this Agreement, against (i) the Owner Trustee in its individual capacity, (ii) any holder of a beneficial interest in the Issuer, (iii) any partner, owner, beneficiary, agent, officer, director, employee or agent of the Owner Trustee, in its individual capacity or (iv) any holder of a beneficial interest in the Owner Trustee or, in its individual capacity, except as any such Person may have expressly agreed (it being understood that the Owner Trustee has no such obligations in its individual capacity).  For all purposes of this Agreement, in the performance of any duties or obligations of the Issuer under this Agreement, the Owner Trustee will be subject to, and entitled to the benefits of, Articles V, VI and VII of the Trust Agreement.

 

[Remainder of Page Intentionally Left Blank]

 

11

 

EXECUTED BY:

 

	
 
    	
FORD   CREDIT AUTO LEASE TWO LLC,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests   designated as the “2012-A Series”, as Depositor
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
FORD   CREDIT AUTO LEASE TRUST 2012-A,
    
	
 
    	
 
    	
as   Issuer
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
U.S.   Bank Trust National Association, not in its individual capacity but solely as   Owner Trustee
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    

 

[Signature Page to Second-Tier Sale Agreement]Exhibit 10.5

 

 

SERVICING SUPPLEMENT

 

to the

 

AMENDED AND RESTATED SERVICING AGREEMENT

 

dated as of December 1, 2006

 

among

 

FORD MOTOR CREDIT COMPANY LLC,
  as Servicer with respect to the Collateral Specified Interests
 and the 2012-A Reference Pool and as Lender,

 

CAB EAST HOLDINGS, LLC,
 CAB WEST HOLDINGS CORPORATION, and
 FCALM HOLDINGS CORPORATION,
 as Holders of the Collateral Specified Interest Certificates

 

and

 

HTD LEASING LLC,
 as Collateral Agent

 

Dated as of February 1, 2012

 

 

 

TABLE OF CONTENTS

 

	
ARTICLE I USAGE AND DEFINITIONS
    	
1
    
	
Section 1.1.
    	
Usage   and Definitions
    	
1
    
	
 
    	
 
    	
 
    
	
ARTICLE II DESIGNATION
    	
2
    
	
Section 2.1.
    	
Designation
    	
2
    
	
 
    	
 
    	
 
    
	
ARTICLE III THE SERVICER
    	
2
    
	
Section 3.1.
    	
Appointment   of Servicer
    	
2
    
	
Section 3.2.
    	
Representations   of the Servicer
    	
2
    
	
Section 3.3.
    	
Representations   and Warranties About the Leases and the Leased Vehicles
    	
2
    
	
Section 3.4.
    	
Liability   of the Servicer; Indemnities
    	
5
    
	
Section 3.5.
    	
Purchase   Upon Breach
    	
5
    
	
Section 3.6.
    	
Collection   of Payments
    	
6
    
	
Section 3.7.
    	
Servicer   May Own Exchange Note and Notes
    	
7
    
	
Section 3.8.
    	
Fees   and Expenses
    	
7
    
	
Section 3.9.
    	
Termination
    	
7
    
	
 
    	
 
    	
 
    
	
ARTICLE IV ACCOUNTS, COLLECTIONS AND   APPLICATION OF FUNDS
    	
8
    
	
Section 4.1.
    	
Bank   Accounts
    	
8
    
	
Section 4.2.
    	
Remittance
    	
9
    
	
Section 4.3.
    	
Advances
    	
10
    
	
Section 4.4.
    	
Repayment   of Advances
    	
11
    
	
Section 4.5.
    	
Trust   Distribution Account
    	
11
    
	
Section 4.6.
    	
Reserve   Deposits and Withdrawals
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE V TERMINATION
    	
11
    
	
Section 5.1.
    	
Clean-Up   Call
    	
11
    
	
 
    	
 
    	
 
    
	
ARTICLE VI REPORTS AND NOTICES
    	
12
    
	
Section 6.1.
    	
Monthly   Investor Reports
    	
12
    
	
Section 6.2.
    	
Notices   and Certificates Received by or Delivered by the Servicer Under the Servicing   Agreement
    	
12
    
	
Section 6.3.
    	
Notice   of Servicer Event of Default
    	
12
    
	
Section 6.4.
    	
Annual   Statement as to Compliance
    	
12
    
	
Section 6.5.
    	
Compliance   with Obligations under Sarbanes-Oxley Act
    	
13
    
	
Section 6.6.
    	
Report   on Assessment of Compliance with Servicing Criteria and Attestation
    	
13
    
	
Section 6.7.
    	
Delivery   of Tax Related Information
    	
13
    
	
Section 6.8.
    	
Termination   of Reporting Obligation
    	
13
    
	
Section 6.9.
    	
Authorized   Persons of Servicer
    	
14
    
	
Section 6.10.
    	
Execution   of Securities and Exchange Commission Filings
    	
14
    
	
 
    	
 
    	
 
    
	
ARTICLE VII MISCELLANEOUS
    	
14
    
	
Section 7.1.
    	
Amendments
    	
14
    

 

i

 

	
Section 7.2.
    	
Third-Party   Beneficiaries of the Servicing Agreement and this Servicing Supplement
    	
14
    
	
Section 7.3.
    	
No   Petition
    	
14
    
	
Section 7.4.
    	
GOVERNING   LAW
    	
15
    
	
Section 7.5.
    	
Submission   To Jurisdiction
    	
15
    
	
Section 7.6.
    	
WAIVER   OF JURY TRIAL
    	
15
    
	
Section 7.7.
    	
Severability
    	
15
    
	
Section 7.8.
    	
Counterparts
    	
15
    
	
Section 7.9.
    	
Headings
    	
15
    
	
Section 7.10.
    	
Conflict   with Servicing Agreement
    	
15
    
	
Section 7.11.
    	
List   of Responsible Persons
    	
15
    
	
 
    	
 
    	
 
    
	
Exhibit A
    	
Schedule   of Collateral Leases and Collateral Leased Vehicles in 2012-A Reference Pool
    	
EA-1
    
	
Exhibit B
    	
Form of   Monthly Investor Report
    	
EB-1
    

 

ii

 

SERVICING SUPPLEMENT, dated as of February 1, 2012 (this “Servicing Supplement”), to the Amended and Restated Servicing Agreement, dated as of December 1, 2006 (the “Servicing Agreement”), among (i) FORD MOTOR CREDIT COMPANY LLC, a Delaware limited liability company (“Ford Credit”), as servicer with respect to the Collateral Specified Interests and the 2012-A Reference Pool (in such capacity, the “Servicer”) and as Lender under the Credit and Security Agreement (in such capacity, the “Lender”), (ii) CAB EAST HOLDINGS, LLC, a Delaware limited liability company, CAB WEST HOLDINGS CORPORATION, a Delaware corporation and FCALM HOLDINGS CORPORATION, a Delaware corporation (together, the “Holding Companies” and each, a “Holding Company”), as Holders of the Collateral Specified Interest Certificates and (iii) HTD Leasing LLC, as collateral agent (in such capacity, the “Collateral Agent”).

 

BACKGROUND

 

Section 2.3 of the Servicing Agreement provides that in connection with the issuance of an Exchange Note pursuant to the Credit and Security Agreement (as defined below) and the Exchange Note Supplement (as defined below), the Servicer, the Lender, the Collateral Agent and each Holding Company may enter into a supplement to the Servicing Agreement setting forth the specific rights and duties of the Servicer and the other agreements and undertakings with respect to the administration and servicing of the 2012-A Reference Pool and the 2012-A Exchange Note.

 

The Series 2012-A Exchange Note will be issued and the 2012-A Reference Pool will be designated, each pursuant to the Credit and Security Agreement and the Exchange Note Supplement.

 

The parties wish to enter into this Servicing Supplement to set forth the additional duties required of the Servicer with respect to the 2012-A Reference Pool and the 2012-A Exchange Note.

 

ARTICLE I

USAGE AND DEFINITIONS

 

Section 1.1.                                   Usage and Definitions.  Capitalized terms used but not otherwise defined in this Servicing Supplement are defined in Appendix 1 to the Exchange Note Supplement to the Credit and Security Agreement (as defined below), dated as of February 1, 2012 (the “Exchange Note Supplement”), among CAB East LLC (“CAB East”), as a Borrower, CAB West LLC (“CAB West”), as a Borrower, and FCALM, LLC (“FCALM” and, together with CAB East and CAB West, the “Titling Companies”), as a Borrower, U.S. Bank National Association (“U.S. Bank”), as Administrative Agent, the Collateral Agent, and Ford Credit, as Lender and Servicer.  Capitalized terms used but not otherwise defined in this Servicing Supplement or in Appendix 1 to the Exchange Note Supplement are defined in Appendix A to the Amended and Restated Credit and Security Agreement, dated as of December 1, 2006 (the “Credit and Security Agreement”), among the Titling Companies, as Borrowers, U.S. Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and Servicer, or, if not defined in Appendix A, are defined in the related Titling Company Agreement.  Appendix 1 and Appendix A also contain rules as to usage applicable to this Servicing Supplement and are incorporated by reference into this Servicing Supplement.

 

 

ARTICLE II
 DESIGNATION

 

Section 2.1.                                   Designation.  The parties designate the Collateral Leases and Collateral Leased Vehicles listed on Exhibit A to be the “2012-A Reference Pool” and each Collateral Lease and Collateral Leased Vehicle included in the 2012-A Reference Pool to be a “Lease” and a “Leased Vehicle,” respectively.

 

ARTICLE III
 THE SERVICER

 

Section 3.1.                                   Appointment of Servicer.  Each party acknowledges and agrees that the Servicer under the Servicing Agreement will also act as Servicer under this Servicing Supplement with respect to the 2012-A Reference Pool and the 2012-A Exchange Note and will also act as agent of any Holding Company, as Holder of the related Collateral Specified Interest Certificate in the management and control of the Leases and Leased Vehicles and for all other purposes set forth in this Servicing Supplement and the Servicing Agreement.  Ford Credit accepts such appointments.

 

Section 3.2.                                   Representations of the Servicer.  The Servicer has made the representations set forth in Section 3.2 of the Servicing Agreement on which the Lender, the Holding Companies and the Collateral Agent have relied, and the 2012-A Exchange Noteholder, in acquiring the 2012-A Exchange Note, will rely.  Such representations are remade as of the Exchange Note Issuance Date and will survive the sale, transfer, assignment and conveyance of the 2012-A Exchange Note to the 2012-A Exchange Noteholder, the Depositor and the Issuer and the pledge of the 2012-A Exchange Note to the Indenture Trustee pursuant to the Indenture.

 

Section 3.3.                                   Representations and Warranties About the Leases and the Leased Vehicles.  The Servicer represents and warrants to the Depositor and the Issuer as of the date of this Servicing Supplement and the 2012-A Closing Date (except as otherwise specified), which representations and warranties (i) the 2012-A Exchange Noteholder, the Depositor and the Issuer have relied on in acquiring the 2012-A Exchange Note and (ii) will survive the sale of the 2012-A Exchange Note to the 2012-A Exchange Noteholder, the Depositor and the Issuer and the pledge of the 2012-A Exchange Note to the Indenture Trustee pursuant to the Indenture:

 

(a)                                  New Vehicle.  Each Leased Vehicle was a new car, light truck or utility vehicle at the beginning of the related Lease; provided, that a Leased Vehicle that has never been titled and has not been driven more than 6,000 miles will be deemed to be a new vehicle for purposes of this representation and warranty.

 

(b)                                 Certificate of Title.  Each Leased Vehicle was titled in accordance with the related Titling Company Agreement and in a manner acceptable to the relevant Governmental Authority, or the Servicer has commenced procedures that will result in such title.

 

(c)                                  Security Interest in Lease and Leased Vehicle.  The Collateral Agent has a security interest in each Lease and Leased Vehicle which was validly created and is a perfected, first priority security interest, and is noted as lienholder on the certificate of title for each Leased Vehicle, or the Servicer has commenced procedures that will result in the perfection of a first

 

2

 

priority security interest in the related Leased Vehicle, including by notation of the lien on the certificate of title.

 

(d)                                 Interest in Lease and Leased Vehicle.  Each Lease was entered into by a Dealer located in the United States, as lessor, and a Lessee with a garaging location in an Eligible State, as lessee, and all of the Dealer’s right, title and interest in such Lease and the related Leased Vehicle was validly assigned to a Titling Company qualified to hold such Leased Vehicle.

 

(e)                                  Origination of Leases.  Each Lease was originated by a Dealer in the ordinary course of its business and has been fully executed by the parties thereto and at the time of its origination, substantially complied with the Servicer’s Credit and Collection Policy.

 

(f)                                    Total Payments.  Each Lease (other than an Advance Payment Plan Lease) provides for Total Payments that include Base Payments.

 

(g)                                 Compliance with Law.  Each Lease complied in all material respects at the time it was originated, and as of the date of this Servicing Supplement will comply in all material respects, with all requirements of federal, State and local laws.

 

(h)                                 Consents, Licenses, Approvals and Authorizations.  All material consents, licenses, approvals or authorizations of, or registrations or declarations with, any Governmental Authority required to be obtained, effected or given by the Dealer that originated a Lease or the related Titling Company in connection with (i) the origination of such Lease, (ii) the execution, delivery and performance by such Dealer of such Lease and (iii) the acquisition and ownership by the related Titling Company of such Lease and the related Leased Vehicle, had been duly obtained, effected or given and were in full force and effect as of such date of origination or acquisition and remained in full force and effect.

 

(i)                                     Binding Obligation.  Each Lease is on a form contract that includes rights and remedies allowing the holder to enforce the obligation and realize on the Leased Vehicle and represents the legal, valid and binding payment obligation of the related Lessee, enforceable in all material respects by the holder of the Lease, except as may be limited by bankruptcy, insolvency, reorganization or other laws relating to the enforcement of creditors’ rights or by general equitable principles and consumer protection laws.

 

(j)                                     No Government Lessee.  No Lease is an obligation of the United States of America or any State or local government or from any agency, department, or instrumentality or political subdivision of the United States of America or any State or local government.

 

(k)                                  No Commercial Lease.  No Lease is a commercial lease contract, master lease contract or fleet vehicle lease contract; provided that no Lease that is a retail lease contract will breach this representation solely because the related Lessee is a commercial lessee or the Leased Vehicle will be used for commercial purposes.

 

(l)                                     Leases in Force.  No Lease (i) is a Terminating Lease or a Closed Lease as of the Cutoff Date or (ii) has been satisfied, subordinated, rescinded, cancelled or terminated, in whole or in part.

 

3

 

(m)                               No Waiver or Amendments.  No material provision of a Lease (other than the assessment of a security deposit or a Payment Extension Fee or the payment of any other amount that, upon collection, would constitute an Additional Amount, or a default relating to failure by the related Lessee to pay any such amount) has been affirmatively waived or amended, except amendments and modifications that are contained in the Lease Files.

 

(n)                                 No Extensions.  As of the Cutoff Date, no extensions other than Payment Extensions not exceeding three months in the aggregate under any Lease have been granted.

 

(o)                                 No Defenses.  To the Servicer’s knowledge, no right of rescission, setoff, counterclaim or defense has been asserted or threatened with respect to any Lease.

 

(p)                                 No Delinquency or Default.  Except for payments that are not more than 30 days delinquent as of the Cutoff Date, no payment defaults (determined in accordance with the Credit and Collection Policy) exist.

 

(q)                                 Insurance.  Each Lease requires the lessee to obtain physical damage and liability insurance covering the related Leased Vehicle.

 

(r)                                    Title.  The applicable Titling Company has good title, or the Servicer has commenced procedures that will result in good title, to each Lease and each Leased Vehicle, free and clear of any Liens other than Permitted Liens.

 

(s)                                  Valid Assignment.  No Lease was originated in, or is subject to the laws of, any jurisdiction under which the sale and assignment of such Lease or the related Leased Vehicle to the Titling Company would be unlawful, void, or voidable.  Each Lease is fully assignable and no Dealer has entered into any agreement with any Lessee that prohibits, restricts or conditions the assignment of any portion of a Lease.

 

(t)                                    Chattel Paper.  Each Lease constitutes either “tangible chattel paper” or “electronic chattel paper” within the meaning of Section 9-102(a) of the UCC and there is only one original authenticated copy of each.

 

(u)                                 Maturity of Leases.  Each Lease has an original Scheduled Lease End Date of no greater than 48 months from its Lease Date.

 

(v)                                 Peace of Mind.  No Lease that is an Advance Payment Plan Lease has been identified by the Servicer as qualifying for the benefits of its “Peace of Mind” program for Lessees who were at least 62 years of age at Lease inception and who die during the term of the related Lease.

 

(w)                               No Bankruptcy Proceeding.  As of the Cutoff Date, the Servicer has not received actual notice that the Lessee on any Lease is a debtor in a bankruptcy proceeding.

 

(x)                                   No Allocation to Other Specified Interest.  No Lease or Leased Vehicle has been allocated to any Specified Interest other than a Collateral Specified Interest.

 

4

 

(y)                                 Valid Security Interest.  The Collateral Agent has a valid security interest, or the Servicer has commenced procedures that will result in a valid security interest, in the Collateral Leases and the Collateral Leased Vehicles and all proceeds thereof.

 

(z)                                   Information about Leases; Selection Procedures.  The information on the schedule of Collateral Leases and Collateral Leased Vehicles attached as Exhibit A is true and correct in all material respects as of the Cutoff Date.  No selection procedures believed to be adverse to the 2012-A Exchange Noteholder have been utilized in selecting the Leases and Leased Vehicles included in the 2012-A Reference Pool from other leases and leased vehicles that meet the criteria specified in this Section 3.3.

 

(aa)                            Other Data.  The numerical data relating to the characteristics of the Leases and Leased Vehicles contained in Annex A of the Prospectus Supplement is true and correct in all material respects.

 

Section 3.4.                                   Liability of the Servicer; Indemnities.

 

(a)                                  The Servicer will indemnify, defend and hold harmless each Titling Company, the Holders of the Collateral Specified Interest Certificates, the Administrative Agent, the Collateral Agent, the Lender, the Indenture Trustee and the 2012-A Exchange Noteholder (each, with respect to this Section 3.4(a), an “Indemnified Person”) in accordance with Section 3.3 of the Servicing Agreement as well as from and against any and all costs, expenses, losses, damages, claims and liabilities, arising out of the Servicer’s willful misconduct, bad faith or negligence.

 

(b)                                 The Servicer will indemnify, defend and hold harmless the Issuer, the Collateral Agent, the Administrative Agent, the Owner Trustee and the Indenture Trustee, as applicable, and their respective officers, directors, employees and agents (each, with respect to this Section 3.4(b), an “Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims and liabilities arising out of, or incurred in connection with, the acceptance of or performance by the Servicer of the trusts and duties contained in this Servicing Supplement, except to the extent that such cost, expense, loss, damage, claim or liability:  (i) is due to the willful misconduct, bad faith or negligence of the Indemnified Person, (ii) in the case of the Owner Trustee, arises from the Owner Trustee’s breach of any of its representations or warranties set forth in the Trust Agreement or (iii) in the case of the Indenture Trustee, arises from the Indenture Trustee’s breach of any of its representations and warranties set forth in the Indenture.

 

(c)                                  In addition to the Indemnified Parties included in the Servicing Agreement, the Servicer will indemnify the Issuer, the Owner Trustee and the Indenture Trustee as “Indemnified Parties” pursuant to Sections 3.3(b), (c), and (d) of the Servicing Agreement.

 

Section 3.5.                                   Purchase Upon Breach.

 

(a)                                  Deposit of Administrative Reallocation Amount.

 

(i)             If a Responsible Person of the Servicer has actual knowledge, or receives notice from the 2012-A Exchange Noteholder or the Indenture Trustee, of a breach of (A) a representation or warranty set forth in Section 3.3 of this Servicing Supplement, (B) the covenant set forth in Section 3.8(b) of the Servicing Agreement, (C) the covenant set forth

 

5

 

in Section 3.6 of this Servicing Supplement or (D) the covenant set forth in Section 6.7 of the Servicing Agreement, in each case, that materially and adversely affects any Lease and Leased Vehicle, the Servicer will deposit into the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to each such Lease and Leased Vehicle as of the last day of the second Collection Period following the Collection Period in which the Servicer obtained actual knowledge, or was notified, of such breach (or, at the Servicer’s option, the end of the first Collection Period following the Collection Period in which the Servicer obtained actual knowledge, or was notified, of such breach) unless, by such last day such breach has been cured in all material respects.

 

(ii)          The Servicer may deposit into the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease and Leased Vehicle if the Servicer determines, in its sole discretion, that, as a result of a computer systems error or computer systems limitation or for any other reason, the Servicer is unable to service such Lease and Leased Vehicle in accordance with the terms of the Servicing Agreement or this Servicing Supplement.  The Servicer will deposit into the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease (and with the related Leased Vehicle) that is an Advance Payment Plan Lease if the Servicer determines that such Lease qualifies for the benefit of its “Peace of Mind” program.

 

(iii)       So long as Ford Credit remains the Servicer, the Servicer will deposit into the Exchange Note Collection Account an amount equal to the Administrative Reallocation Amount with respect to any Lease and Leased Vehicle if the Servicer is notified that the Leased Vehicle is no longer owned by a Titling Company.

 

(iv)      The Servicer will deposit the Administrative Reallocation Amount with respect to any Lease and related Leased Vehicle that the Servicer is removing from the 2012-A Reference Pool in accordance with this Section 3.5(a) into the Exchange Note Collection Account on the Business Day preceding the Payment Date (or, with satisfaction of the Rating Agency Condition, on the Payment Date) related to the Collection Period during which such purchase occurs.

 

(b)                                 Reallocation Sole Remedy for Breach.  Except as provided in Section 3.3, the sole remedy of the Collateral Agent, the 2012-A Exchange Noteholder, the Indenture Trustee and the holders of the Notes with respect to a breach of the representations and warranties contained in Section 3.3 is as set forth in Section 3.5(a).

 

(c)                                  Reallocation of Purchased Leases and Leased Vehicles.  Upon the deposit of the Administrative Reallocation Amount for any Lease and Leased Vehicle pursuant to Section 3.5(a), such Lease and Leased Vehicle will be reallocated to the Revolving Facility Pool at the direction of the Servicer and will no longer be included in the 2012-A Reference Pool.

 

Section 3.6.                                   Collection of Payments.  The Servicer may grant extensions, waivers, rebates, modifications or adjustments with respect to any Collateral Lease, except that if, after the Cutoff Date, the Servicer modifies the amount of the Base Payment due or the total number of original scheduled due dates (including in connection with a Term Extension), in each case with

 

6

 

respect to any Lease, the Servicer will reallocate such Lease and the related Leased Vehicle to the Revolving Facility Pool in accordance with Section 3.5 except, in either case, to the extent that any such modification is required by law or court order.

 

Section 3.7.                                   Servicer May Own Exchange Note and Notes.  The Servicer, and any Affiliate of the Servicer, may, in its individual or any other capacity, become the owner or pledgee of the 2012-A Exchange Note and/or the Notes with the same rights as it would have if it were not the Servicer or an Affiliate thereof, except as otherwise provided in the Servicing Agreement, this Servicing Supplement, the Credit and Security Agreement and the Indenture.  Except as set forth in the Servicing Agreement, this Servicing Supplement or in the other 2012-A Basic Documents, Notes so owned by or pledged to the Servicer or such Affiliate will have an equal and proportionate benefit under the Servicing Agreement and this Servicing Supplement.

 

Section 3.8.                                   Fees and Expenses.

 

(a)                                  Reference Pool Servicing Fee.

 

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

 

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

 

(b)                                 Investment Earnings.  As provided in Section 4.2, the Servicer will be entitled to receive investment earnings on funds on deposit in the Bank Accounts as additional compensation for the performance of its duties under this Servicing Supplement, and losses, if any, and investment expenses resulting from the investment of funds on deposit in the Bank Accounts will be charged to the Servicer.

 

(c)                                  Additional Amounts.  As additional compensation for the performance of its duties under the Servicing Agreement and this Servicing Supplement and as reimbursement for expenses incurred in connection with such performance, the Servicer will be entitled to retain for its own account all Additional Amounts (or to withdraw and retain any Additional Amounts that nevertheless have been deposited into the Exchange Note Collection Account).  All Additional Amounts are the property of the Servicer.

 

Section 3.9.                                   Termination.  This Servicing Supplement will be terminated in the event that the Servicing Agreement is terminated in accordance therewith and may also be terminated at the option of the Servicer or the Holding Companies at any time following the payment in full of the 2012-A Exchange Note; provided, that the rights and obligations of the parties to this Servicing Supplement under Section 3.4 will survive any such termination.

 

7

 

ARTICLE IV
 ACCOUNTS, COLLECTIONS AND APPLICATION OF FUNDS

 

Section 4.1.                                   Bank Accounts

 

(a)                                  Establishment of Bank Accounts.  On or before the Exchange Note Issuance Date, the Servicer will establish four segregated trust accounts, each in the name of the Indenture Trustee at a Qualified Institution or a Qualified Trust Institution, to be designated as:

 

(i)             “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-A” that will be designated as the “Exchange Note Collection Account;”

 

(ii)          “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-A” that will be designated as the “Collection Account;”

 

(iii)       “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-A” that will be designated as the “Principal Payment Account;” and

 

(iv)      “The Bank of New York Mellon, as Indenture Trustee, as secured party for Ford Credit Auto Lease Trust 2012-A” that will be designated as the “Reserve Account.”

 

Initially, the Exchange Note Collection Account will be account number 879681, the Collection Account will be account number 879682, the Principal Payment Account will be account number 879683 and the Reserve Account will be account number 879684 and each such account will include any successor or replacement accounts thereto.

 

(b)                                 Control of the Bank Accounts.  Each of the Bank Accounts with respect to the 2012-A Reference Pool will be under the sole dominion and control of the Indenture Trustee, as secured party for the benefit of the 2012-A Secured Parties, so long as the Bank Accounts remain subject to the Lien of the Indenture; provided, that, (i) following the payment in full of the Notes and the release of the Bank Accounts from the Lien of the Indenture, the Exchange Note Collection Account will be under the sole dominion and control of the Collateral Agent and (ii) following the payment in full of the 2012-A Exchange Note, the Exchange Note Collection Account will be under the sole dominion and control of the Borrowers.  However, the Servicer may make deposits to or request the Indenture Trustee (or, after the Note Balance of the Notes has been reduced to zero, the Collateral Agent, and following the payment in full of the 2012-A Exchange Note, the Borrowers) to make deposits to or withdrawals from the Exchange Note Collection Account in accordance with the Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement and this Servicing Supplement.  All monies deposited in the Exchange Note Collection Account pursuant to the Exchange Note Supplement, the Credit and Security Agreement, the Servicing Agreement or this Servicing Supplement will be held (i) until the Note Balance of the Notes has been reduced to zero and the Bank Accounts have been released from the Lien under the Indenture, by the Indenture Trustee, (ii) until the payment in full of the 2012-A Exchange Note, by the Collateral Agent and (iii) following the payment in full of the 2012-A Exchange Note, by or on behalf of the Borrowers, and in each case will be applied only upon the terms and conditions of the 2012-A Basic Documents, as applicable.  The authority of the Servicer

 

8

 

to make deposits to the Bank Accounts is revocable at any time (i) by the Indenture Trustee until the Note Balance of the Notes has been reduced to zero, (ii) then, by the Collateral Agent until the payment in full of the 2012-A Exchange Note, and (iii) thereafter by the Borrowers.

 

(c)                                  Agreement with Depository Institution.  The Bank Accounts will only be established at a Qualified Institution or Qualified Trust Institution that complies with the requirements set forth in Section 5.2(d) of the Servicing Agreement.

 

Section 4.2.                                   Remittance.

 

(a)                                  If Ford Credit’s short term unsecured debt is rated at least “P-1” by Moody’s and “F1” by Fitch (this rating requirement, the “Monthly Remittance Required Ratings”), Ford Credit may remit 2012-A Collections on the Business Day preceding each Payment Date, or with satisfaction of the Rating Agency Condition, on each Payment Date.

 

(b)                                 If Ford Credit’s short term unsecured debt is not rated at least equal to the Monthly Remittance Required Ratings or a Servicer Event of Default occurs, the Servicer will remit to the Exchange Note Collection Account:

 

(i)             on the Exchange Note Issuance Date, an amount equal to the sum of (A) the Cutoff Date Payahead Amount and (B) all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (in each case excluding Recoveries) that are Posted during the period from and including the Cutoff Date to and including the second Business Day preceding the 2012-A Closing Date;

 

(ii)          following the Exchange Note Issuance Date, an amount equal to all Active Lease Proceeds, Terminating Lease Proceeds and Closed Lease Proceeds (in each case excluding Recoveries) within two Business Days after the Posting Date for such amounts (including any such amounts Posted on the Business Day preceding the Exchange Note Issuance Date and on the Exchange Note Issuance Date); and

 

(iii)       Administrative Reallocation Amounts, Active Lease Advances, Payment Extension Fees and Recoveries with respect to any Collection Period no later than the Business Day preceding the following Payment Date or, with satisfaction of the Rating Agency Condition, the following Payment Date.

 

(c)                                  Pending deposit into the Exchange Note Collection Account, the Servicer is not required to segregate 2012-A Collections or Payaheads from its own funds.

 

(d)                                 So long as Ford Credit remains the Servicer, Ford Credit, as Servicer, may make the remittances required by Section 4.2(a) net of:

 

(i)             Reference Pool Servicing Fees to be distributed pursuant to Section 3.8(a) to the Servicer with respect to such Collection Period; and

 

(ii)          Advance Reimbursement Amounts that the Servicer is permitted to retain pursuant to Section 4.3(b).

 

9

 

Section 4.3.                                   Advances.

 

(a)                                  Advances by the Servicer.  The Servicer will make an advance for each Active Lease other than an Advance Payment Plan Lease and each Collection Period if, for such Lease and such Collection Period, the scheduled Base Payment exceeds the sum of (A) Active Lease Proceeds (which may be positive or negative) plus (B) the Payahead Draw, by depositing the amount of such excess (equal to the Active Lease Advance) into the Exchange Note Collection Account on the Business Day preceding the Payment Date immediately following such Collection Period or, with satisfaction of the Rating Agency Condition, on such Payment Date.  However, the Servicer will be required to make Active Lease Advances only to the extent that the Servicer, in its sole discretion, determines that such advances will be recoverable from subsequent 2012-A Collections (whether relating to such Lease and Leased Vehicle or any other Lease or Leased Vehicle) in the manner described in Section 4.3(b).

 

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

 

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

 

(ii)                                  second, if such Lease is a Terminating Lease or a Closed Lease during such Collection Period, an amount equal to the lesser of (A) the sum of (1) the Terminating Lease Proceeds, plus (2) the Closed Lease Proceeds, plus (3) the Administrative Reallocation Amount (if any), in each case with respect to such Lease and such Collection Period and (B) such Advance Balance; and

 

(iii)                               third, on and after the Collection Period that includes the Closed Date with respect to such Lease, an amount equal to the lesser of:

 

(A)                              the sum of all Active Lease Proceeds, Terminating Lease Proceeds, Closed Lease Proceeds and Administrative Reallocation Amounts (in each case not relating to such Lease) for such Collection Period; and

 

(B)                                the excess, if any, of (1) such Advance Balance over (2) the amount retained by the Servicer pursuant to Section 4.3(b)(ii) for the current Collection Period.

 

The Servicer may instruct the Indenture Trustee, for so long as the Notes are Outstanding, and thereafter, the Collateral Agent, to withdraw from the Exchange Note Collection Account and pay to the Servicer any amounts that the Servicer is entitled to retain pursuant to this Section 4.3(b) to the extent such amounts have been deposited in the Exchange Note Collection Account.  The

 

10

 

Indenture Trustee or the Collateral Agent, as applicable, may, but is not required to, request from the Servicer reasonable documentation (which may be provided by reference to the Servicer’s books and records) in connection with any such withdrawal instruction.

 

Section 4.4.                                   Repayment of Advances.  If a successor Servicer is appointed pursuant to the Servicing Agreement, the predecessor Servicer will be entitled to receive reimbursement for the Advance Balances outstanding on the date of termination of such predecessor Servicer in the manner specified in Section 4.3(b).  Any Advance Reimbursement Amount for any Lease will be applied (a) first to the Advance Balances outstanding on the date of termination of such predecessor Servicer and (b) second, to the remaining portion, if any, of the Advance Balances.

 

Section 4.5.                                   Trust Distribution Account.  The Depositor may cause the Owner Trustee to establish and maintain a segregated trust account in the name “U.S. Bank Trust National Association as Owner Trustee,” that is designated as the “Trust Distribution Account” and will promptly notify the Owner Trustee and the Indenture Trustee after the establishment of the Trust Distribution Account.  The Trust Distribution Account will be under the sole dominion and control of the Owner Trustee, except that the Indenture Trustee may make deposits to the Trust Distribution Account in accordance with the 2012-A Basic Documents.  All deposits to and withdrawals from the Trust Distribution Account will be made in accordance with the Indenture and the Trust Agreement.

 

Section 4.6.                                   Reserve Deposits and Withdrawals.

 

(a)                                  On the 2012-A Closing Date, the Depositor will deposit, or cause to be deposited, the Reserve Initial Deposit into the Reserve Account from the net proceeds of the sale of the Notes.

 

(b)                                 At least two Business Days before each Payment Date, the Servicer will calculate the Reserve Account Draw Amount for such Payment Date and will instruct the Indenture Trustee to withdraw such amount from the Reserve Account and apply it in accordance with Section 5.1 of the Exchange Note Supplement.

 

(c)                                  At least two Business Days before each Payment Date, the Servicer will instruct the Indenture Trustee (based on the most recent Monthly Investor Report) to make the withdrawals, deposits, distributions and payments required to be made on such Payment Date pursuant to Section 5.1 of the Exchange Note Supplement and Section 8.2 of the Indenture.

 

ARTICLE V
 TERMINATION

 

Section 5.1.                                   Clean-Up Call.

 

(a)                                  If the Note Balance is equal to or less than 5% of the initial aggregate Note Balance on the last day of any Collection Period, the Servicer has the option to purchase the 2012-A Exchange Note in whole but not in part.  The Servicer may exercise its option to purchase the 2010-A Exchange Note by (i) notifying the Collateral Agent, the Borrowers, the Owner Trustee, the Administrative Agent, the Indenture Trustee and the Rating Agencies at least ten days prior to

 

11

 

the Payment Date related to such Collection Period (which Payment Date will be the Exchange Note Purchase Date) and (ii) remitting to the Exchange Note Collection Account an amount equal to the Exchange Note Purchase Price in immediately available funds by 10:00 a.m. (New York City time) on the Business Day preceding the Exchange Note Purchase Date (or, with satisfaction of the Rating Agency Condition, on the Exchange Note Purchase Date).  Notwithstanding the foregoing, the Servicer will not be permitted to purchase the 2012-A Exchange Note unless the Exchange Note Purchase Price, together with amounts in the Collection Account, is greater than or equal to the sum of (i) the Note Redemption Price for the Notes and (ii) all fees and expenses of the Issuer, including all amounts due to the Indenture Trustee under the Indenture.

 

(b)                                 For so long as the Servicer and the Lender under the Credit and Security Agreement are the same entity, upon purchase of the 2012-A Exchange Note by the Servicer pursuant to Section 5.1(a), the Servicer may, by notice to the Borrowers, the Lender, the Collateral Agent and the Administrative Agent, request that the 2012-A Exchange Note be cancelled and the Leases and related Leased Vehicles be reallocated to the Revolving Facility Pool.

 

ARTICLE VI
 REPORTS AND NOTICES

 

Section 6.1.                                   Monthly Investor Reports.  At least two Business Days before each Payment Date, the Servicer will deliver to the Owner Trustee, the Indenture Trustee, the Note Paying Agent, the Depositor and, if requested, the Rating Agencies, a servicing report substantially in the form of Exhibit B (the “Monthly Investor Report”) for the preceding Collection Period and such Payment Date.  A Responsible Person of the Servicer will certify that the information in the Monthly Investor Report is accurate in all material respects.

 

Section 6.2.                                   Notices and Certificates Received by or Delivered by the Servicer Under the Servicing Agreement.  The Servicer will deliver any notice or certificate received by it or delivered by it under the Servicing Agreement to the Owner Trustee and the Indenture Trustee within five Business Days of such receipt or delivery by the Servicer.

 

Section 6.3.                                   Notice of Servicer Event of Default.  The Servicer will notify the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency of any Facility Servicer Event of Default or Exchange Note Servicer Event of Default or any event that with the giving of notice or lapse of time, or both, would become a Facility Servicer Event of Default or Exchange Note Servicer Event of Default, no later than five Business Days after a Responsible Person of the Servicer obtains actual knowledge of such event.

 

Section 6.4.                                   Annual Statement as to Compliance.  To the extent required by Regulation AB, the Servicer will deliver to the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency within 90 days after the end of each calendar year beginning with the year after the 2012-A Closing Date, an Officer’s Certificate, dated as of December 31 of the preceding calendar year, signed by a Responsible Person of the Servicer to the effect that (i) a review of the Servicer’s activities during the preceding calendar year (or, in the case of the first certificate, the portion of the preceding calendar year since the 2012-A Closing Date) and of its performance under this Agreement has been made under such Responsible Person’s supervision and (ii) to such Responsible Person’s knowledge, based on such review, the Servicer has fulfilled in all material

 

12

 

respects all of its obligations under this Agreement throughout such calendar year (or applicable portion of such calendar year), or, if there has been a failure to fulfill any such obligation in any material respect, specifically identifying each such failure known to such Responsible Person and the nature and status of such failure.  A copy of the Officer’s Certificate referred to in this Section 3.4(b) may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

Section 6.5.                                   Compliance with Obligations under Sarbanes-Oxley Act.  If directed by the Indenture Administrator, the Servicer will prepare, execute and deliver all certificates or other documents required to be delivered by the Issuer pursuant to the Sarbanes-Oxley Act of 2002.

 

Section 6.6.                                   Report on Assessment of Compliance with Servicing Criteria and Attestation.  The Servicer will:

 

(i)             deliver to the Depositor, the Owner Trustee, the Indenture Trustee and each Rating Agency, a report, dated as of December 31 of the preceding calendar year, on its assessment of compliance with the minimum servicing criteria during the preceding calendar year, including disclosure of any identified material instance of non-compliance identified by the Servicer, as specified by Rule 13a-18 and 15d-18 of the Exchange Act and Item 1122 of Regulation AB under the Securities Act; and

 

(ii)          cause a firm of registered public accountants that is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act to deliver an attestation report that satisfies the requirements of Rule 13a-18 or Rule 15d-18 under the Exchange Act and Item 1122 of Regulation AB, as applicable, on the assessment of compliance with servicing criteria with respect to the prior calendar year.  Such attestation report will be addressed to the board of directors of the Servicer and the Servicer will deliver copies to the Issuer, the Owner Trustee, the Depositor and the Indenture Trustee.  Such attestation will be in accordance with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Exchange Act.  The firm may render other services to the Servicer, the Depositor or Ford Credit, but the firm must indicate in each attestation report that it is qualified and independent within the meaning of Rule 2-01 of Regulation S-X under the Securities Act.

 

The reports referred to in this Section 6.6 will be delivered within 90 days after the end of each calendar year, beginning in the year after the 2012-A Closing Date.  A copy of the reports referred to in this Section 6.6 may be obtained by any Noteholder or Person certifying it is a Note Owner by a request in writing to the Indenture Trustee at its Corporate Trust Office.

 

Section 6.7.                                   Delivery of Tax Related Information.  To the extent required by law, the Servicer will deliver to the Owner Trustee for distribution to the holder of the Residual Interest information for the preparation of such holder’s federal and State income tax returns.

 

Section 6.8.                                   Termination of Reporting Obligation.  The Servicer’s obligation to deliver or cause the delivery of reports under this Article VI, other than tax reports under Section 6.7, will terminate upon the payment in full of the Notes, including by redemption in whole as contemplated by Section 10.1 of the Indenture.

 

13

 

Section 6.9.                                   Authorized Persons of Servicer.  On or prior to the Closing Date, the Servicer will provide notice to the Indenture Trustee and the Owner Trustee specifying (i) each Person who will be authorized to provide instructions and directions to the Indenture Trustee and the Owner Trustee on behalf of the Servicer, and (ii) each Person who is a Responsible Person with respect to the Servicer, which Persons may be changed from time to time by notice to the Indenture Trustee and the Owner Trustee.

 

Section 6.10.                             Execution of Securities and Exchange Commission Filings.  To the extent permitted by law, the Servicer is authorized to execute and, upon the request of the Issuer (or the Administrator on its behalf), will execute, on behalf of the Issuer, any Securities and Exchange Commission filings required to be filed by the Issuer pursuant to Section 7.3 of the Indenture.

 

ARTICLE VII
 MISCELLANEOUS

 

Section 7.1.                                   Amendments.

 

(a)                                  This Servicing Supplement may be amended in accordance with Section 10.1 of the Servicing Agreement; provided, however, that the Indenture Trustee will provide or withhold consent with respect to any proposed amendment to this Servicing Supplement or the Servicing Agreement that materially affects the rights or obligations of the Servicer with respect to the Collateral Specified Interests and the 2012-A Reference Pool, only as directed by the Noteholders of Notes evidencing not less than a majority of the Note Balance of the Controlling Class.

 

(b)                                 Promptly upon the execution of any such amendment, (i) the Servicer will deliver a copy of such amendment to the Indenture Trustee and each of the Rating Agencies and (ii) the Indenture Trustee will notify each holder of a Note of the substance of such amendment.

 

Section 7.2.                                   Third-Party Beneficiaries of the Servicing Agreement and this Servicing Supplement.  The Servicing Agreement and this Servicing Supplement will inure to the benefit of and be binding upon the parties to this Servicing Supplement and their assigns (including the Holders of the Collateral Specified Interest Certificates as assignees of the Holding Companies) as well as any 2012-A Exchange Noteholder, the Owner Trustee and the Indenture Trustee.

 

Section 7.3.                                   No Petition.  Each party to this Servicing Supplement covenants that for a period of one year and one day (or, if longer, any applicable preference period) after payment in full of the Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all holders of any other Securities (as defined in the related Titling Company Agreement) the payments on which are derived in any material part from amounts received with respect to any Titling Company Assets (as defined in the applicable Titling Company Agreements), it will not institute against, or join any Person in instituting against, the Issuer, the Depositor, any Holding Company, any Titling Company, or the Holders of the Collateral Specified Interest Certificates any bankruptcy, reorganization, arrangement, insolvency or liquidation proceedings, or other proceedings under any United States federal or state bankruptcy or similar law in connection with any obligations relating to the 2012-A Exchange Note, the Notes, this Servicing Supplement or any of the other 2012-A Basic Documents and agrees it will not cooperate with or encourage

 

14

 

others to file a bankruptcy petition against the Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the Collateral Specified Interest Certificates during the same period.

 

Section 7.4.                                   GOVERNING LAW.  THIS SERVICING SUPPLEMENT WILL BE CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK INCLUDING SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATION LAWS OF THE STATE OF NEW YORK, BUT OTHERWISE WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES.

 

Section 7.5.                                   Submission To Jurisdiction.  Each party to this Servicing Supplement submits to the nonexclusive jurisdiction of the United States District Court for the Southern District of New York and of any New York State Court sitting in New York, New York for purposes of all legal proceedings arising out of or relating to this Servicing Supplement or the transactions contemplated by this Servicing Supplement or by the other 2012-A Basic Documents.  Each party to this Servicing Supplement irrevocably waives, to the fullest extent it may do so, any objection that it may now or hereafter have to the laying of the venue of any such proceeding brought in such a court and any claim that any such proceeding brought in such a court has been brought in an inconvenient forum.

 

Section 7.6.                                   WAIVER OF JURY TRIAL.  EACH PARTY TO THIS SERVICING SUPPLEMENT IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY OTHER 2012-A BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS SERVICING SUPPLEMENT, THE INDENTURE OR ANY SUCH OTHER 2012-A BASIC DOCUMENT.

 

Section 7.7.                                   Severability.  If any one or more of the covenants, agreements, provisions or terms of this Servicing Supplement is held invalid, illegal or unenforceable, then such covenants, agreements, provisions or terms will be deemed severable from the remaining covenants, agreements, provisions or terms of this Servicing Supplement and will in no way affect the validity, legality or enforceability of the other provisions of this Servicing Supplement.

 

Section 7.8.                                   Counterparts.  This Servicing Supplement may be executed in any number of counterparts, each of which will be an original, and all of which will together constitute one and the same instrument.

 

Section 7.9.                                   Headings.  The various headings in this Servicing Supplement are included for convenience only and will not affect the meaning or interpretation of any provision of this Servicing Supplement.

 

Section 7.10.                             Conflict with Servicing Agreement.  In the event of any conflict between this Servicing Supplement (or any portion thereof) and the Servicing Agreement, the terms of this Servicing Supplement will prevail.

 

Section 7.11.                             List of Responsible Persons.  The Servicer may from time to time designate the individuals who are authorized to act as a “Responsible Person” with respect to the Servicer

 

15

 

pursuant to an Officer’s Certificate delivered to the Owner Trustee, the Indenture Trustee, the Titling Companies, the Titling Company Administrator, the Holding Companies and the Depositor.

 

[Remainder of Page Intentionally Left Blank]

 

16

 

	
EXECUTED   BY:
    	
 
    
	
 
    	
 
    
	
 
    	
FORD   MOTOR CREDIT COMPANY LLC,
    
	
 
    	
 
    	
as   Servicer with respect to the Collateral Specified Interests and the 2012-A   Reference Pool and as Lender
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CAB   EAST HOLDINGS, LLC,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests   designated as the “Collateral Series,” as Holder of a Collateral Specified   Interest Certificate
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CAB   WEST HOLDINGS CORPORATION,
    
	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests   designated as the “Collateral Series,” as Holder of a Collateral Specified   Interest Certificate
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
Title:
    

 

[Signature Page to the Servicing Supplement]

 

 

	
 
    	
 
    	
FCALM   HOLDINGS CORPORATION,
    
	
 
    	
 
    	
 
    	
acting   with respect to its Series of limited liability company interests   designated as the “Collateral Series,” as Holder of a Collateral Specified   Interest Certificate
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
HTD   LEASING LLC,
    
	
 
    	
 
    	
 
    	
as   Collateral Agent
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
By:
    	
 
    
	
 
    	
 
    	
 
    	
Name:
    
	
 
    	
 
    	
 
    	
Title:
    
	
 
    	
 
    	
 
    
	
AGREED   AND ACCEPTED BY:
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
U.S.   BANK NATIONAL ASSOCIATION,
    	
 
    	
 
    
	
 
    	
 
    	
as   Titling Company Registrar with Respect to each of the Titling Companies, on   behalf of the Titling Companies
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
By:
    	
 
    	
 
    	
 
    	
 
    
	
 
    	
 
    	
Name:
    	
 
    	
 
    
	
 
    	
 
    	
Title:
    	
 
    	
 
    

 

[Signature Page to the Servicing Supplement]

 

 

	
AGREED   AND ACCEPTED FOR
    	
 
    
	
PURPOSES   OF SECTION 7.1(a) BY:
    	
 
    
	
 
    	
 
    
	
FORD   CREDIT AUTO LEASE TRUST 2012-A
    	
 
    
	
 
    	
 
    
	
By:
    	
U.S.   Bank Trust National Association, not in its individual capacity but solely as   Owner Trustee of Ford Credit Auto Lease Trust 2012-A
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
THE   BANK OF NEW YORK MELLON,
    	
 
    
	
 
    	
not   in its individual capacity but solely as Indenture Trustee
    	
 
    
	
 
    	
 
    
	
 
    	
 
    
	
By:
    	
 
    	
 
    
	
 
    	
Name:
    	
 
    
	
 
    	
Title:
    	
 
    

 

[Signature Page to the Servicing Supplement]

 

 

Exhibit A

 

Schedule of Collateral Leases and Collateral Leased Vehicles in 2012-A Reference Pool

 

(On File with Collateral Agent)

 

EA-1

 

Exhibit B

 

Form Of Monthly Investor Report

 

EB-1

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