FORM OF SERVICING AGREEMENT Dated as of September 11, 2009 by and between GE EQUIPMENT MIDTICKET LLC, SERIES 2009-1 as the Issuer and GENERAL ELECTRIC CAPITAL CORPORATION, as the Servicer
Exhibit 4(e)
FORM OF SERVICING AGREEMENT
Dated as of September 11, 2009
by and between
GE EQUIPMENT MIDTICKET LLC, SERIES 2009-1
as the Issuer
as the Issuer
and
GENERAL ELECTRIC CAPITAL CORPORATION,
as the Servicer
TABLE OF CONTENTS
| Page | ||||
ARTICLE I DEFINITIONS AND INTERPRETATION |
||||
Section 1.1. Definitions |
1 | |||
Section 1.2. Other Interpretive Matters |
1 | |||
ARTICLE II APPOINTMENT OF THE SERVICER; CERTAIN DUTIES AND RESPONSIBILITIES OF THE
SERVICER |
||||
Section 2.1. Appointment of the Servicer |
1 | |||
Section 2.2. Duties and Responsibilities of the Servicer |
1 | |||
Section 2.3. Unrelated Amounts |
2 | |||
Section 2.4. Authorization of the Servicer |
2 | |||
Section 2.5. Servicing Fees and Servicing Advances |
3 | |||
Section 2.6. Covenants of the Servicer |
3 | |||
Section 2.7. Servicer’s Certificate |
3 | |||
Section 2.8. Annual Statement as to Compliance; Notice of Default |
4 | |||
Section 2.9. Annual Reports on Assessment of Compliance with Servicing Criteria |
4 | |||
Section 2.10. Appointment of Subservicer |
4 | |||
Section 2.11. Maintenance of Security Interests in Loans |
5 | |||
Section 2.12. Accounts |
5 | |||
Section 2.13. Reserve Account |
5 | |||
Section 2.14. Disbursement from the Collection Account |
5 | |||
Section 2.15. Limitation on Liability of Servicer and Others |
6 | |||
ARTICLE III REPRESENTATIONS AND WARRANTIES |
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Section 3.1. Representations and Warranties of the Servicer |
6 | |||
ARTICLE IV ADDITIONAL COVENANTS |
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Section 4.1. Covenants of the Servicer Regarding the Loans |
7 | |||
ARTICLE V EVENTS OF SERVICER TERMINATION |
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Section 5.1. Default |
8 | |||
ARTICLE VI SUCCESSOR SERVICER |
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Section 6.1. Resignation of Servicer |
9 | |||
Section 6.2. Appointment of the Successor Servicer |
9 | |||
Section 6.3. Duties of Servicer |
9 | |||
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TABLE OF CONTENTS
(continued)
(continued)
| Page | ||||
Section 6.4. Effect of Termination or Resignation |
10 | |||
ARTICLE VII INDEMNIFICATION |
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Section 7.1. Indemnities by the Servicer |
10 | |||
Section 7.2. Limitation of Damages; Indemnified Persons |
10 | |||
ARTICLE VIII MISCELLANEOUS |
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Section 8.1. Notices |
10 | |||
Section 8.2. Binding Effect; Assignability |
12 | |||
Section 8.3. Termination; Survival of Obligations Upon Class C Maturity Date or
Redemption Date |
12 | |||
Section 8.4. No Proceedings |
12 | |||
Section 8.5. Complete Agreement; Modification of Agreement |
12 | |||
Section 8.6. Amendments and Waivers |
13 | |||
Section 8.7. No Waiver; Remedies |
13 | |||
Section 8.8. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL |
13 | |||
Section 8.9. Counterparts |
14 | |||
Section 8.10. Severability |
14 | |||
Section 8.11. Section Titles |
14 | |||
Section 8.12. Limited Recourse |
14 | |||
Section 8.13. Further Assurances |
15 | |||
Section 8.14. Pledge of Assets |
15 | |||
Section 8.15. Waiver of Setoff |
15 | |||
Exhibit A
|
Form of Servicer’s Certificate | |
Annex A
|
Definitions and Interpretation |
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This SERVICING AGREEMENT, dated as of September 11, 2009 (this “Agreement” or
“Servicing Agreement”), by and between GE EQUIPMENT MIDTICKET LLC, SERIES 2009-1, a limited
liability company organized under the laws of the State of Delaware (the “Issuer”), and
GENERAL ELECTRIC CAPITAL CORPORATION (“GE Capital”), in its capacity as the servicer
hereunder (the “Servicer”).
In consideration of the premises and the mutual covenants hereinafter contained, and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows:
ARTICLE I
DEFINITIONS AND INTERPRETATION
Section 1.1. Definitions. Capitalized terms used herein and not otherwise defined
shall have the meanings ascribed to them in Section 1 of Annex A to this Agreement.
Section 1.2. Other Interpretive Matters. For purposes of this Agreement, the other
interpretive matters set forth in Section 2 of Annex A shall govern. All exhibits,
schedules, and other attachments hereto, or expressly identified hereto are incorporated herein by
reference and, taken together with this Agreement, shall constitute but a single agreement.
ARTICLE II
APPOINTMENT OF THE SERVICER; CERTAIN DUTIES
AND RESPONSIBILITIES OF THE SERVICER.
AND RESPONSIBILITIES OF THE SERVICER.
Section 2.1. Appointment of the Servicer. The Issuer hereby appoints the Servicer as
its agent to service the Loans and enforce its rights and interests in and under the Loans and to
serve in such capacity until the termination of its responsibilities pursuant to Sections
5.1 or 6.1. In connection therewith, the Servicer hereby accepts such appointment and
agrees to perform the duties and obligations set forth herein. The Servicer may, upon giving prior
written notice to the Issuer, delegate any duties to any Person, or subcontract with a
Sub-Servicer, for the collection, servicing or administration of the Loans; provided, that
(a) the Servicer shall remain liable for the performance of the duties and obligations of any
delegate or the Sub-Servicer pursuant to the terms hereof and (b) any Sub-Servicing Agreement that
may be entered into and any other transactions or services relating to the Loans involving a
Sub-Servicer shall be deemed to be between the Sub-Servicer and the Servicer alone, and the Issuer
shall not be deemed party thereto and shall have no obligations, duties or liabilities with respect
to the Sub-Servicer.
Section 2.2. Duties and Responsibilities of the Servicer. Subject to the provisions
of this Agreement, the Servicer shall conduct the servicing, administration and collection of the
Loans and shall take, or cause to be taken, all actions that (a) may be necessary or advisable to
service, administer and collect the Loans from time to time, (b) the Servicer would take if the
Loans were
owned by the Servicer, and (c) are consistent with the Credit and Collection Policies. The
Servicer shall also perform on behalf of, and as directed by, the Issuer all of the Issuer’s
obligations under the Indenture other than any obligations to pay money and any obligations to be
performed by the Administrator under the Administration Agreement.
Section 2.3. Unrelated Amounts. If the Servicer determines that amounts which are
not property of the Issuer (the “Unrelated Amounts”) have been deposited in the Collection
Account, then the Servicer shall provide written evidence thereof to the Issuer no later than the
first Business Day following the day on which the Servicer had actual knowledge thereof, which
evidence shall be provided in writing. Upon receipt of any such notice, the Servicer shall
withdraw the Unrelated Amounts from the Collection Account, and the same shall not be treated as
Available Amounts on Loans and shall not be subject to the provisions of Section 2.12.
Section 2.4. Authorization of the Servicer. The Servicer is hereby authorized to
take any and all reasonable steps necessary or desirable and consistent with the ownership of the
Loans by the Issuer and pledge of the Loans to the Indenture Trustee under the Indenture, in the
determination of the Servicer, to (a) collect all amounts due under the Loans, including endorsing
its name on checks and other instruments representing Available Amounts on the Loans, executing and
delivering any and all instruments of satisfaction or cancellation or of partial or full release or
discharge and all other comparable instruments with respect to the Loans, and consistent with its
normal procedures, arranging with the Obligor to extend or modify Scheduled Payments in its
discretion, and (b) after the Loans become delinquent and to the extent permitted under and in
compliance with applicable law and regulations, (i) commence proceedings with respect to the
enforcement of payment of the Loans, (ii) adjust, settle or compromise any payments due thereunder
and (iii) initiate proceedings against any Collateral securing the obligations due under the Loans,
in each case, consistent with the Credit and Collection Policies; provided, that, with
respect to clause (a) and (b) above, the Servicer shall not agree to any modification of the APR on
any Loan or of the amount of any Scheduled Payment on a Loan if such modification has a Material
Adverse Effect on the Noteholders; and provided, further, that in no event will
such modification be permitted to extend the final payment date beyond the Class C Maturity Date.
If the Servicer shall commence a legal proceeding to enforce a Loan, the Issuer (in the case
of a Loan other than a Purchased Loan) shall thereupon be deemed to have automatically assigned,
solely for the purpose of collection, such Loan to the Servicer. If in any enforcement suit or
legal proceeding it shall be held that the Servicer may not enforce a Loan on the ground that it
shall not be a real party in interest or a holder entitled to enforce such Loan, the Managing
Member shall take steps to enforce such Loan, including bringing suit in its name.
The Issuer shall furnish (or cause to be furnished) the Servicer with any powers of attorney
and other documents necessary or appropriate to enable the Servicer to carry out its servicing and
administrative duties hereunder, and the Issuer shall assist the Servicer to the fullest extent to
enable the Servicer to collect the Loans and otherwise discharge its duties hereunder. In no event
shall the Servicer be entitled to make the Issuer a party to any litigation without the Issuer’s
express prior written consent.
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Section 2.5. Servicing Fees and Servicing Advances. (a) As compensation for its
servicing activities and as reimbursement for its reasonable expenses in connection therewith, the
Servicer shall be entitled to receive the Servicing Fees for each Collection Period. The Servicer
shall be required to pay for all expenses incurred by it in connection with its activities
hereunder (including any payments to accountants, counsel or any other Person) and shall not be
entitled to any payment therefor other than the Servicing Fees. The Servicer shall also be
entitled to reimbursement for any outstanding Servicing Advances owing to the Servicer with respect
to all preceding Collection Periods.
(b) The Servicer may, but shall have no obligation to, make a Servicing Advance in the
manner and to the extent provided herein, but only to the extent the Servicer, in its sole
discretion, expects to be reimbursed for such advance. If the Servicer elects to make a
Servicing Advance, prior to the close of business on each Determination Date, the Servicer
will determine the amount of the advance that it has elected to make on the related Transfer
Date. The Servicer shall include information as to such determination in the Servicer’s
Certificate furnished by it in accordance with Section 2.7 and shall be obligated to
transfer to the Collection Account on or before 11:00 a.m. (New York City time) on the
related Transfer Date in next day funds the amounts applicable to such determinations
appearing in such Servicer’s Certificate. All Servicing Advances shall be reimbursable to
the Servicer, without interest, when a payment relating to a Loan with respect to which an
advance has previously been made is subsequently received. Upon the determination by the
Servicer that reimbursement from the preceding source is unlikely or nonrecoverable, it will
be entitled to recover unreimbursed advances from Available Amounts on or in respect of
other Loans.
Section 2.6. Covenants of the Servicer. The Servicer covenants and agrees that from
and after the Closing Date and until the earlier of the Class C Maturity Date or Redemption Date,
as applicable:
(a) Ownership of Loans. The Servicer shall identify the Loans clearly and
unambiguously in its Servicing Records to reflect that the Loans are owned by the Issuer and
have been pledged to the Indenture Trustee under the Indenture.
(b) Compliance with Credit and Collection Policies; Law. The Servicer shall
comply in all material respects with the Credit and Collection Policies with respect to the
Loans and in all material respects with applicable law with respect to the Loans, unless, in
either case, such failure to comply would not be reasonably expected to cause a Material
Adverse Effect.
Section 2.7. Servicer’s Certificate. On each Determination Date the Servicer shall
deliver to the Issuer, with a copy to the Indenture Trustee, the Seller and the Rating Agencies, a
Servicer’s Certificate in the form set forth as Exhibit A hereto and containing all information
necessary to make the distributions pursuant to Section 2.14 and the deposits to the
Collection Account pursuant to Section 2.12 for the Collection Period preceding the date of
such Servicer’s Certificate. Loans to be repurchased by the Seller shall be identified by the
Servicer by account number with respect to such Loan (as specified in the Schedule of Loans
delivered on the Closing Date).
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Section 2.8. Annual Statement as to Compliance; Notice of Default. (a) The Servicer
shall, and shall cause each Additional Servicer with which it has entered into a servicing
relationship with respect to the Loans to, deliver to the Issuer, with a copy to the Indenture
Trustee, on or before March 15 after the end of each calendar year of the Issuer (commencing with
the calendar year 2010), an Officers’ Certificate stating that: (i) a review of the activities of
the Servicer, or Additional Servicer, as appropriate, during the preceding 12-month period (or, in
the case of the first such certificate, from the Cut-off Date to December 31, 2009) and of its
performance under this Agreement has been made under such officer’s supervision and (ii) to the
best of such officer’s knowledge, based on such review, such Servicer, or Additional Servicer, as
appropriate, has fulfilled all of its obligations under this Agreement, or the applicable
sub-servicing agreement in the case of an Additional Servicer, throughout such year or, if there
has been a failure to fulfill any such obligation in any material respect, specifying each such
failure known to such officer and the nature and status thereof.
(b) The Servicer shall deliver to the Issuer, with a copy to the Indenture Trustee,
promptly after having obtained knowledge thereof, but in no event later than five Business
Days thereafter, written notice in an Officers’ Certificate of any event that, with the
giving of notice or lapse of time, or both, would become a Servicer Default under
Section 5.1.
Section 2.9. Annual Reports on Assessment of Compliance with Servicing Criteria. On
or before March 15 of each calendar year of the Issuer (commencing with the calendar year 2010)
each Reporting Servicer shall furnish, and shall cause each Servicing Function Participant with
which it has entered into a servicing relationship with respect to the Loans to furnish, to the
Issuer, with a copy to the Indenture Trustee, a report on assessment of compliance with the
Servicing Criteria that contains (A) a statement by such Reporting Servicer of its responsibility
for assessing compliance with the Servicing Criteria applicable to it, (B) a statement that such
Reporting Servicer used the Servicing Criteria to assess compliance with the applicable Servicing
Criteria, (C) such Reporting Servicer’s assessment of compliance with the applicable Servicing
Criteria as of and for the period ending December 31, including, if there has been any material
instance of noncompliance with the applicable Servicing Criteria, a discussion of each such failure
and the nature and status thereof, and (D) a statement that a registered public accounting firm has
issued an attestation report on such Reporting Servicer’s assessment of compliance with the
applicable Servicing Criteria as of and for such period; such attestation shall be in accordance
with Rules 1-02(a)(3) and 2-02(g) of Regulation S-X under the Securities Act and the Securities
Exchange Act and shall be provided as an exhibit to such Reporting Servicer’s report on assessment
of compliance with the Servicing Criteria.
Section 2.10. Appointment of Subservicer. The Servicer may at any time appoint a
subservicer to perform all or any portion of its obligations as Servicer hereunder;
provided, that the Servicer shall remain obligated and be liable to the Issuer, for the
servicing and administering of the Loans in accordance with the provisions hereof without
diminution of such obligation and liability by virtue of the appointment of such subservicer and to
the same extent and under the same terms and conditions as if the Servicer alone were servicing and
administering the Loans. The fees and expenses of the subservicer shall be as agreed between the
Servicer and its subservicer from time to time and the Issuer shall have no responsibility
therefor.
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Section 2.11. Maintenance of Security Interests in Loans. The Servicer shall, in
accordance with the Credit and Collection Policies, take such steps as are necessary to maintain
perfection of the security interest created by each Loan in any of the Equipment. The Issuer
hereby authorizes the Servicer to take such steps as are necessary to re-perfect such security
interests on behalf of the Issuer or its assigns for any reason, including the filing of UCC
financing statements and any amendments thereto without the related debtor’s signature. Without
limiting the generality of the foregoing, the Servicer shall make or maintain all required federal
lien filings or registrations in the name of the Issuer, as applicable. Upon discovery by the
Issuer or the Servicer of a breach of its obligation to maintain perfection of the security
interest in each Loan pursuant to this Section 2.11, which breach is reasonably likely to
have a Material Adverse Effect, the party discovering the same shall give prompt written notice
thereof to the other party hereto. As liquidated damages for such breach, the Issuer shall, on the
Transfer Date relating to the Collection Period during which the breach is discovered, request the
Servicer to, and the Servicer shall pay to, or at the direction of, the Issuer the Purchase Amount
for the applicable Loans (measured at the end of the Collection Period during which such breach is
discovered). Upon such payment, all rights, title and interest of the Issuer in and to such Loans
will be deemed to be automatically released without the necessity of any further action by the
Issuer, the Servicer or any other party and such Loans will become the property of the Servicer.
Section 2.12. Accounts. As of the Closing Date, the Servicer shall establish and
maintain, on behalf of the Issuer and in accordance with the terms of the Indenture, the
Collection Account and the Reserve Account, each of which shall be an Eligible Deposit Account in
the name of the Issuer.
(a) Not later than 10:00 a.m. (New York City time) on each Transfer Date, the Servicer
shall deposit into the Collection Account all Available Amounts with respect to the related
Collection Period that have not previously been deposited into the Collection Account (it
being understood that no such deposits are required to be made prior to the Transfer Date
unless a Daily Deposit Event has occurred).
(b) Upon the occurrence and during the continuation of a Daily Deposit Event, the
Servicer shall transfer to the Collection Account, on each Business Day in same day funds,
all Available Amounts then held or thereafter received by it that are required to be
deposited into the Collection Account, within two (2) Business Days after receipt thereof.
Section 2.13. Reserve Account. The Servicer shall determine the amounts for deposit
into or for withdrawal from the Reserve Account on each Transfer Date in accordance with the
provisions of Section 8.4 of the Indenture.
Section 2.14. Disbursement from the Collection Account. On each Transfer Date, the
Servicer, on behalf of the Issuer, shall withdraw from the Collection Account for payment to itself
an amount equal to any accrued but unpaid Servicing Fee and any accrued but unpaid Servicing
Advances owing to the Servicer (based on the information contained in the Servicer’s Certificate
delivered on the related Determination Date pursuant to Section 2.7) in accordance with
Section 2.5.
Servicing Agreement
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Section 2.15. Limitation on Liability of Servicer and Others. Neither the Servicer
nor any of the directors, officers, employees or agents of the Servicer shall be under any
liability to the Issuer or the Noteholders, except as provided under this Agreement, for any action
taken or for refraining from the taking of any action pursuant to this Agreement or for errors in
judgment; provided, however, that this provision shall not protect the Servicer or
any such Person against any liability that would otherwise be imposed by reason of willful
misconduct, bad faith or negligence in the performance of its duties or by reason of reckless
disregard of obligations and duties under this Agreement. The Servicer and any director, officer,
employee or agent of the Servicer may rely in good faith on the advice of counsel or on any
document of any kind prima facie properly executed and submitted by any Person respecting any
matters arising hereunder.
Except as provided in this Agreement, the Servicer shall not be under any obligation to appear
in, prosecute or defend any legal action that shall not be incidental to its duties to service the
Loans in accordance with this Agreement, and that in its opinion may involve it in any expense or
liability; provided, however, that the Servicer may undertake any reasonable action
that it may deem necessary or desirable in respect of this Agreement, the Related Documents and the
rights and duties of the parties to this Agreement, the other Related Documents and the interests
of the Noteholders under the Indenture.
ARTICLE III
REPRESENTATIONS AND WARRANTIES
Section 3.1. Representations and Warranties of the Servicer. The Servicer represents
and warrants to the Issuer as of the Closing Date as follows:
(a) It is a corporation, duly organized, validly existing and in good standing under
the laws of its jurisdiction of incorporation or organization and is duly qualified to do
business, and is in good standing, in each jurisdiction in which the servicing of the Loans
hereunder requires it to be so qualified, except where the failure to comply would not
reasonably be expected to have a Material Adverse Effect.
(b) It has the power and authority to execute and deliver this Agreement and to perform
the transactions contemplated hereby.
(c) This Agreement has been duly authorized, executed and delivered by the Servicer and
constitutes its legal, valid and binding obligation enforceable against it in accordance
with its terms, subject to any applicable bankruptcy, insolvency, reorganization, moratorium
or other similar laws now or hereafter in effect relating to or affecting the enforceability
of creditors’ rights generally and general equitable principles, whether applied in a
proceeding at law or in equity.
(d) No consent of, notice to, filing with or permits, qualifications or other action by
any Governmental Authority or any other party is required for the due execution, delivery
and performance of this Agreement, other than consents, notices, filings and other actions
which have been obtained or made or where the failure to get
such consent or take such action, individually or in the aggregate, would not
reasonably be expected to have a Material Adverse Effect.
Servicing Agreement
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(e) There is no pending or, to its actual knowledge, threatened litigation of a
material nature against or affecting it, in any court or tribunal, before any arbitrator of
any kind or before or by any Governmental Authority (i) asserting the invalidity of this
Agreement, or (ii) seeking any determination or ruling that might materially and adversely
affect the validity or enforceability of this Agreement.
ARTICLE IV
ADDITIONAL COVENANTS
Section 4.1. Covenants of the Servicer Regarding the Loans. (a) Maintenance of
Files. The Servicer shall, for not less than three (3) years or for such longer period as may
be required by law, from the date on which any Loan is paid in full, maintain the Records with
respect to each Loan, including records of all payments received, credits granted and property
returned. The Servicer will permit representatives of the Issuer or its designee at any reasonable
time during normal business hours, and at such times outside of normal business hours as the Issuer
shall reasonably request, (i) to inspect and make copies of and abstracts from such Records, (ii)
to visit the properties of the Servicer utilized in connection with the collection, processing or
servicing of the Loans for the purpose of examining such Records, and (iii) to discuss matters
relating to the Loans or the Servicer’s performance under this Agreement with any officer, employee
or accountants of the Servicer having knowledge of such matters. In connection therewith, the
Issuer shall institute procedures to permit it to confirm the Loan Value in respect of any Loan;
provided that no one other than the Servicer, subject to any other arrangements made by the
Issuer, will contact an Obligor unless a Servicer Default has occurred. The Servicer agrees to
render to the Issuer such clerical and other assistance as may be reasonably requested with regard
to the foregoing.
(b) Servicer Default. If a Servicer Default shall have occurred and be
continuing, promptly upon request therefor, the Servicer shall deliver to the Issuer records
reflecting activity through the close of business on the immediately preceding Business Day.
Upon the occurrence and during the continuation of a Servicer Default, the Servicer shall
(i) deliver and turn over to the Issuer or to its representatives, or at the option of the
Issuer shall provide the Issuer or its representatives with access to, at any time, on
demand of the Issuer, all of the Servicer’s facilities, personnel, books and records
pertaining to the Loans, including all Records, (ii) allow the Issuer to occupy the premises
of the Servicer where such books, records and Records are maintained, and (iii) utilize such
premises, the equipment thereon and any personnel of the Servicer that the Issuer may wish
to employ to administer, service and collect the Loans.
(c) Notice of Adverse Claim. The Servicer shall advise the Issuer promptly, in
reasonable detail, (i) of any claim of ownership or Lien known to it made or asserted
against any Loan, other than any ownership interest or Lien created under the Sale Agreement
or the Purchase and Sale Agreement, any Lien created under the Indenture or
Servicing Agreement
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any Permitted Encumbrances (as defined under the Sale Agreement or the Purchase and
Sale Agreement, as applicable), and (ii) of the occurrence of any event known to it which
would have a material adverse effect on the aggregate value of the Loans.
(d) Further Assurances. The Servicer shall furnish to the Issuer from time to
time such statements and schedules further identifying and describing the Loans and such
other reports in connection with the Loans as the Issuer may reasonably request, all in
reasonable detail.
ARTICLE V
EVENTS OF SERVICER TERMINATION
Section 5.1. Default. If any of the following events shall occur (regardless of the
reason therefor) with respect to the Servicer:
(a) The Servicer shall (i) fail to make or give instructions for any deposit, transfer
or payment required to be made hereunder and the same shall remain unremedied for three (3)
Business Days, or (ii) fail or neglect to perform, keep or observe in any material respect
any other provision of this Agreement and the same shall remain unremedied for fifteen (15)
days after written notice thereof shall have been given by the Issuer to the Servicer;
(b) Any representation or warranty of the Servicer herein or in any written statement,
report, financial statement or certificate made or delivered by the Servicer to the Issuer
hereto or thereto shall be untrue or incorrect in any material respect as of the date when
made or deemed made and shall not be corrected for a period of sixty (60) days after either
(i) any Authorized Officer of the Servicer becomes aware thereof or (ii) notice thereof has
been given to such Person by the Issuer; or
(c) A Bankruptcy Event shall have occurred and be continuing with respect to the
Servicer;
then, upon the occurrence of any of such events (each, a “Servicer Default”), the Issuer
may deliver a notice (a “Servicer Termination Notice”) to the Servicer, terminating the
servicing responsibilities of the Servicer hereunder, without demand, protest or further notice of
any kind, all of which are hereby waived by the Servicer. Upon the delivery of any such notice,
all authority and power of the Servicer under this Agreement shall pass to and be vested in the
Successor Servicer acting pursuant to Section 6.2, provided, that notwithstanding
anything to the contrary herein, the Servicer agrees to act as Servicer and to continue to follow
the procedures set forth in this Agreement with respect to Available Amounts on the Loans under
this Agreement until a Successor Servicer has assumed the responsibilities and obligations of the
Servicer in accordance with Section 6.2.
Servicing Agreement
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ARTICLE VI
SUCCESSOR SERVICER
Section 6.1. Resignation of Servicer. The Servicer may resign under the
circumstances set forth in clause (a) or (b) of this Section 6.1.
(a) The Servicer may resign from its obligations and duties hereunder if it finds a
replacement servicer satisfying the eligibility criteria set forth in Section 6.2.
No such resignation shall become effective until the replacement servicer shall have
obtained the Issuer’s approval and appointment pursuant to Section 6.2.
(b) The Servicer may resign from the obligations and duties hereby imposed on it upon
its determination that (i) the performance of its duties hereunder has become impermissible
under applicable law, and (ii) there is no reasonable action which the Servicer could take
to make the performance of its duties hereunder permissible under applicable law. No such
resignation shall become effective until a Successor Servicer shall have assumed the
responsibilities and obligations of the Servicer in accordance with Section 6.2.
Section 6.2. Appointment of the Successor Servicer. In connection with the
termination of the Servicer’s responsibilities under this Agreement pursuant to Section 5.1
or 6.1, the Issuer shall within thirty (30) days after the giving of a Servicer Termination
Notice pursuant to Section 5.1 or as soon as practicable after a resignation of the
Servicer pursuant to Section 6.1, appoint a successor servicer that shall have a long-term
debt rating of at least “Baa3” by Xxxxx’x. The successor servicer shall succeed to all rights and
assume all of the responsibilities, duties and liabilities of the Servicer under this Agreement
(such successor servicer being referred to as the “Successor Servicer”); provided,
that the Successor Servicer shall have no responsibility for any actions of the Servicer prior to
the date of its appointment as Successor Servicer. The Successor Servicer shall accept its
appointment by executing, acknowledging and delivering to the Issuer an instrument in form and
substance acceptable to the Issuer, and if directed by the Issuer, by providing prior written
notice of such appointment to the Indenture Trustee. Notice shall be given to the Rating Agencies
of the appointment of any Successor Servicer.
Section 6.3. Duties of Servicer. At any time following the appointment of a
Successor Servicer:
(a) the Servicer agrees that it shall terminate its activities as servicer hereunder in
a manner acceptable to the Issuer so as to facilitate the transfer of servicing to the
Successor Servicer, including timely delivery (i) to the Issuer of any funds that were
required to be deposited in the Collection Account and the Reserve Account and (ii) to the
Successor Servicer, at a place selected by the Successor Servicer, of all Servicing Records
and other information with respect to the Loans. The Servicer shall account for all funds
and shall execute and deliver such instruments and do such other things as may reasonably be
required to more fully and definitely vest and confirm in the Successor Servicer all rights,
powers, duties, responsibilities, obligations and liabilities of the Servicer; and
Servicing Agreement
-9-
(b) the Servicer shall terminate each Sub-Servicing Agreement that may have been
entered into by it and the Successor Servicer shall not be deemed to have assumed any of
such outgoing servicer’s interest therein or to have replaced such outgoing servicer as a
party to any such Sub-Servicing Agreement.
Section 6.4. Effect of Termination or Resignation. Any termination or resignation of
the Servicer under this Agreement shall not affect any claims that the Issuer may have against the
Servicer for events or actions taken or not taken by the Servicer arising prior to any such
termination or resignation.
ARTICLE VII
INDEMNIFICATION
Section 7.1. Indemnities by the Servicer. Without limiting any other rights that the
Issuer or its Affiliates or any Stockholder, director, officer, employee, or agent or incorporator
thereof (each, a “Servicer Indemnified Person”) may have hereunder or under applicable law,
the Servicer hereby agrees to indemnify each Servicer Indemnified Person from and against any and
all Indemnified Amounts which may be imposed on, incurred by or asserted against a Servicer
Indemnified Person in any way arising out of or relating to any material breach of the Servicer’s
obligations under this Agreement; excluding, however, Indemnified Amounts to the
extent resulting from (i) bad faith, gross negligence or willful misconduct on the part of the
Servicer Indemnified Person or (ii) recourse for uncollectible Loans. Any Indemnified Amounts
subject to the indemnification provisions of this Section 7.1 shall be paid to the Servicer
Indemnified Person within ten (10) Business Days following demand therefor.
Section 7.2. Limitation of Damages; Indemnified Persons. NO SERVICER PARTY TO THIS
AGREEMENT SHALL BE RESPONSIBLE OR LIABLE TO ANY OTHER PARTY TO THIS AGREEMENT, ANY SUCCESSOR,
ASSIGNEE OR THIRD PARTY BENEFICIARY OF SUCH PERSON OR ANY OTHER PERSON ASSERTING CLAIMS
DERIVATIVELY THROUGH SUCH PARTY, FOR INDIRECT, PUNITIVE, EXEMPLARY OR CONSEQUENTIAL DAMAGES THAT
MAY BE ALLEGED AS A RESULT OF ANY TRANSACTION CONTEMPLATED HEREUNDER.
ARTICLE VIII
MISCELLANEOUS
Section 8.1. Notices. Except as otherwise provided herein, whenever it is provided
herein that any notice, demand, request, consent, approval, declaration or other communication
shall or may be given to or served upon any of the parties by any other parties, or whenever any of
the parties desires to give or serve upon any other parties any communication with respect to this
Agreement, each such notice, demand, request, consent, approval, declaration or other communication
shall be in writing and shall be deemed to have been validly served, given or
Servicing Agreement
-10-
delivered (a) upon the earlier of actual receipt and three (3) Business Days after deposit in
the United States mail, registered or certified mail, return receipt requested, with proper postage
prepaid, (b) upon transmission, when sent by facsimile or other electronic transmission (with such
transmission promptly confirmed by delivery of a copy by personal delivery or United States mail as
otherwise provided in this Section 8.1), (c) one (1) Business Day after deposit with a
reputable overnight courier with all charges prepaid or (d) when delivered, if hand-delivered by
messenger, all of which shall be addressed to the party to be notified and sent to the address or
facsimile number indicated below or to such other address (or facsimile number) as may be
substituted by notice given as herein provided. The giving of any notice required hereunder may be
waived in writing by the party entitled to receive such notice. Failure or delay in delivering
copies of any notice, demand, request, consent, approval, declaration or other communication to any
Person designated in any written notice provided hereunder to receive copies shall in no way
adversely affect the effectiveness of such notice, demand, request, consent, approval, declaration
or other communication. Notwithstanding the foregoing, whenever it is provided herein that a
notice is to be given to any other party hereto by a specific time, such notice shall only be
effective if actually received by such party prior to such time, and if such notice is received
after such time or on a day other than a Business Day, such notice shall only be effective on the
immediately succeeding Business Day.
If to GE Capital, as Servicer:
| General Electric Capital Corporation, as Servicer |
||||
| 000 Xxxxxxx 0 | ||||
| Xxxxxxx, Xxxxxxxxxxx 00000 | ||||
| Attention: | General Counsel | |||
| Telephone: | (000) 000-0000 | |||
| Facsimile: | (000) 000-0000 | |||
If to the Issuer:
| GE Equipment Midticket LLC, Series 2009-1 | ||||
| 00 Xxxxxxxxx Xxxxx | ||||
| Xxxxxxx, Xxxxxxxxxxx 00000 | ||||
| Attention: | Capital Markets Operations | |||
| Telephone: | (000) 000-0000 | |||
| Facsimile: | (000) 000-0000 | |||
If to the Rating Agencies:
| Xxxxx’x Investors Service, Inc. | ||||
| ABS Monitoring Department | ||||
| 00 Xxxxxx Xxxxxx | ||||
| Xxx Xxxx, Xxx Xxxx 00000 | ||||
Servicing Agreement
-11-
| Fitch Ratings | ||||
| 00 Xxxx Xxxxxxx | ||||
| Xxxxx 0000 | ||||
| Xxxxxxx, XX 00000 | ||||
| Attn: ABS Surveillance | ||||
If to Indenture Trustee:
| Deutsche Bank Trust Company Americas | ||||
| 00 Xxxx Xxxxxx, 00xx Xxxxx, | ||||
| XX NYC 60-2606, | ||||
| Xxx Xxxx, XX 00000 | ||||
| Attention: Structured Finance Services/Trust and Securities Services—Xxxxx Xxxx | ||||
Section 8.2. Binding Effect; Assignability. This Agreement shall be binding upon and
inure to the benefit of the Issuer and the Servicer and their respective successors and permitted
assigns. Except as set forth in Section 2.1, or Article VI, the Servicer may not
assign, transfer, hypothecate or otherwise convey any of its rights or obligations hereunder or
interests herein without the express prior written consent of the Issuer and unless the Rating
Agency Condition shall have been satisfied with respect to any such assignment. Any such purported
assignment, transfer, hypothecation or other conveyance by the Servicer without the prior express
written consent of the Issuer shall be void. The Issuer may, at any time, assign any of its rights
and obligations under this Agreement to any Person and any such assignee may further assign at any
time its rights and obligations under this Agreement, in each case, without the consent of the
Servicer. Each of the Issuer and the Servicer acknowledges and agrees that, upon any such
assignment, the assignee thereof may enforce directly, all of the obligations of the Issuer or the
Servicer hereunder, as applicable.
Section 8.3. Termination; Survival of Obligations Upon Class C Maturity Date or
Redemption Date. This Agreement shall create and constitute the continuing obligations of the
parties hereto in accordance with its terms, and shall remain in full force and effect until the
earlier of the Class C Maturity Date or the Redemption Date; provided, that the rights and
remedies provided for herein with respect to any breach of any representation or warranty made by
the Servicer pursuant to Article III, the indemnification and payment provisions of
Article VII and Sections 8.4 and 8.12 shall be continuing and shall survive
the later of the Class C Maturity Date or the Redemption Date, as applicable.
Section 8.4. No Proceedings. The Servicer hereby agrees that, from and after the
Closing Date and until the date one year plus one day following the earlier of the Class C Maturity
Date or the Redemption Date, as applicable, it will not, directly or indirectly, institute or cause
to be instituted against the Issuer any proceeding of the type referred to in the definition of
“Bankruptcy Event”; provided that the foregoing shall not in any way limit the Servicer’s
right to pursue any other creditor rights or remedies that the Servicer may have for claims against
the Issuer.
Section 8.5. Complete Agreement; Modification of Agreement. This Agreement
constitutes the complete agreement among the parties hereto with respect to the subject matter
hereof, supersedes all prior agreements and understandings relating to the subject matter
hereof, and may not be modified, altered or amended except as set forth in Section 8.6.
Servicing Agreement
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Section 8.6. Amendments and Waivers. No amendment, modification, termination or
waiver of any provision of this Agreement, or any consent to any departure by any party hereto
therefrom, shall in any event be effective unless the same shall be in writing and signed by each
of the parties hereto.
Section 8.7. No Waiver; Remedies. The failure by the Issuer, at any time or times,
to require strict performance by the Servicer of any provision of this Agreement shall not waive,
affect or diminish any right of the Issuer thereafter to demand strict compliance and performance
herewith. Any suspension or waiver of any breach or default hereunder shall not suspend, waive or
affect any other breach or default whether the same is prior or subsequent thereto and whether the
same or of a different type. None of the undertakings, agreements, warranties, covenants or
representations of the Servicer contained in this Agreement and no breach or default by the
Servicer hereunder, shall be deemed to have been suspended or waived by the Issuer unless such
waiver or suspension is by an instrument in writing signed by an officer of or other duly
authorized signatory of the Issuer and directed to the Servicer specifying such suspension or
waiver. The rights and remedies of the Issuer under this Agreement shall be cumulative and
nonexclusive of any other rights and remedies that the Issuer may have under any other agreement,
including the other Related Documents, by operation of law or otherwise.
Section 8.8. GOVERNING LAW; CONSENT TO JURISDICTION; WAIVER OF JURY TRIAL. THIS
AGREEMENT AND THE OBLIGATIONS ARISING HEREUNDER SHALL IN ALL RESPECTS, INCLUDING ALL MATTERS OF
CONSTRUCTION, VALIDITY AND PERFORMANCE, BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE
WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (INCLUDING SECTION 5-1401(1) OF THE GENERAL
OBLIGATIONS LAW, BUT WITHOUT REGARD TO ANY OTHER CONFLICT OF LAW PROVISIONS THEREOF) AND ANY
APPLICABLE LAWS OF THE UNITED STATES OF AMERICA.
(a) EACH PARTY HERETO HEREBY CONSENTS AND AGREES THAT THE STATE OR FEDERAL COURTS
LOCATED IN THE BOROUGH OF MANHATTAN IN NEW YORK CITY SHALL HAVE EXCLUSIVE JURISDICTION TO
HEAR AND DETERMINE ANY CLAIMS OR DISPUTES BETWEEN THEM PERTAINING TO THIS AGREEMENT OR TO
ANY MATTER ARISING OUT OF OR RELATING TO THIS AGREEMENT; PROVIDED, THAT EACH PARTY
HERETO ACKNOWLEDGES THAT ANY APPEALS FROM THOSE COURTS MAY HAVE TO BE HEARD BY A COURT
LOCATED OUTSIDE OF THE BOROUGH OF MANHATTAN IN NEW YORK CITY. EACH PARTY HERETO SUBMITS AND
CONSENTS IN ADVANCE TO SUCH JURISDICTION IN ANY ACTION OR SUIT COMMENCED IN ANY SUCH COURT,
AND EACH PARTY HERETO HEREBY WAIVES ANY OBJECTION THAT SUCH PARTY MAY HAVE BASED UPON LACK
OF PERSONAL JURISDICTION, IMPROPER VENUE OR FORUM NON CONVENIENS AND
HEREBY CONSENTS TO THE GRANTING OF SUCH
Servicing Agreement
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LEGAL OR EQUITABLE RELIEF AS IS DEEMED APPROPRIATE BY SUCH COURT. EACH PARTY HERETO
HEREBY WAIVES PERSONAL SERVICE OF THE SUMMONS, COMPLAINT AND OTHER PROCESS ISSUED IN ANY
SUCH ACTION OR SUIT AND AGREES THAT SERVICE OF SUCH SUMMONS, COMPLAINT AND OTHER PROCESS MAY
BE MADE BY REGISTERED OR CERTIFIED MAIL ADDRESSED TO SUCH PARTY AT ITS ADDRESS DETERMINED IN
ACCORDANCE WITH SECTION 8.1 AND THAT SERVICE SO MADE SHALL BE DEEMED COMPLETED UPON THE
EARLIER OF SUCH PARTY’S ACTUAL RECEIPT THEREOF OR THREE DAYS AFTER DEPOSIT IN THE UNITED
STATES MAIL, PROPER POSTAGE PREPAID. NOTHING IN THIS SECTION SHALL AFFECT THE RIGHT OF ANY
PARTY HERETO TO SERVE LEGAL PROCESS IN ANY OTHER MANNER PERMITTED BY LAW.
(b) BECAUSE DISPUTES ARISING IN CONNECTION WITH COMPLEX FINANCIAL TRANSACTIONS ARE MOST
QUICKLY AND ECONOMICALLY RESOLVED BY AN EXPERIENCED AND EXPERT PERSON AND THE PARTIES WISH
APPLICABLE STATE AND FEDERAL LAWS TO APPLY (RATHER THAN ARBITRATION RULES), THE PARTIES
DESIRE THAT THEIR DISPUTES BE RESOLVED BY A JUDGE APPLYING SUCH APPLICABLE LAWS. THEREFORE,
TO ACHIEVE THE BEST COMBINATION OF THE BENEFITS OF THE JUDICIAL SYSTEM AND OF ARBITRATION,
THE PARTIES HERETO WAIVE ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, SUIT, OR PROCEEDING
BROUGHT TO RESOLVE ANY DISPUTE, WHETHER SOUNDING IN CONTRACT, TORT OR OTHERWISE, ARISING OUT
OF, CONNECTED WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP ESTABLISHED AMONG THEM IN
CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.
Section 8.9. Counterparts. This Agreement may be executed in any number of separate
counterparts, each of which shall collectively and separately constitute one agreement. Executed
counterparts may be delivered electronically.
Section 8.10. Severability. Wherever possible, each provision of this Agreement
shall be interpreted in such a manner as to be effective and valid under applicable law, but if any
provision of this Agreement shall be prohibited by or invalid under applicable law, such provision
shall be ineffective only to the extent of such prohibition or invalidity without invalidating the
remainder of such provision or the remaining provisions of this Agreement.
Section 8.11. Section Titles. The section titles and table of contents contained in
this Agreement are and shall be without substantive meaning or content of any kind whatsoever and
are not a part of the agreement between the parties hereto.
Section 8.12. Limited Recourse. (a) The obligations of the Issuer under this
Agreement are solely the obligations of the Issuer. No recourse shall be had for any obligation or
claim arising out of or based upon this Agreement against any incorporator, shareholder, officer,
Servicing Agreement
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manager, member or director, past, present or future, of the Issuer or of any successor or of
its constituent members or its other Affiliates, either directly or through the Issuer or any
successor, whether by virtue of any constitution, statute or rule of law or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by acceptance hereof and as part
of the consideration for the acceptance hereof, expressly waived and released. Any accrued
obligations owing by the Issuer under this Agreement shall be payable by the Issuer solely to the
extent that funds are available therefor from time to time in accordance with the provisions of
Section 2.12 (provided that such accrued obligations shall not be extinguished
until paid in full).
(b) The obligations of the Servicer under this Agreement are solely the obligations of
the Servicer. No recourse shall be had for the payment of any amount owing hereunder or any
other obligation or claim arising out of or based upon this Agreement, against any
shareholder, employee, officer, manager, member or director, agent or organizer, past,
present or future, of the Servicer or of any successor thereto, either directly or through
the Servicer or any successor thereto, whether by virtue of any constitution, statute or
rule of law or by the enforcement of any assessment or penalty or otherwise, all such
liability being, by acceptance hereof and as part of the consideration for the acceptance
hereof, expressly waived and released.
Section 8.13. Further Assurances. The Servicer shall, at its sole cost and expense,
promptly and duly execute and deliver any and all further instruments and documents, and take such
further action, that may be necessary or desirable or that the Issuer may request to enable the
Issuer to exercise and enforce its rights under this Agreement or otherwise carry out more
effectively the provisions and purposes of this Agreement.
Section 8.14. Pledge of Assets. The Servicer hereby acknowledges that the Issuer has
granted a security interest in the Collateral to the Indenture Trustee under the Indenture, and
hereby waives any defenses it may have against the Indenture Trustee for the enforcement of this
Agreement in the event of foreclosure by the Indenture Trustee against the Collateral.
Accordingly, the parties hereto agree that, in the event of foreclosure by the Indenture Trustee
against the Collateral, the Indenture Trustee shall have the right to enforce this Agreement and
the full performance by the parties hereto of their obligations and undertakings set forth herein.
The Servicer hereby agrees to deliver to the Indenture Trustee a copy of all notices to be
delivered by the Servicer to the Issuer hereunder.
Section 8.15. Waiver of Setoff. The Servicer hereby waives any right of setoff that
it may have for amounts owing to it under or in connection with this Agreement.
[Signatures Follow]
Servicing Agreement
-15-
IN WITNESS WHEREOF, the parties have caused this Servicing Agreement to be executed by their
respective representatives thereunto duly authorized, as of the date first above written.
| GE EQUIPMENT MIDTICKET LLC, SERIES 2009-1 |
||||||
| By: | CEF Equipment Holding, L.L.C., its Managing Member |
|||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
| GENERAL ELECTRIC CAPITAL CORPORATION | ||||||
| By: | ||||||
| Name: | ||||||
| Title: | ||||||
Servicing Agreement
S-1
EXHIBIT A
to Servicing Agreement
to Servicing Agreement
FORM OF SERVICER’S CERTIFICATE
Attention:
Attention:
[SELLER NAME]
[SELLER ADDRESS]
Attention: Secretary
[SELLER ADDRESS]
Attention: Secretary
Xxxxx’x Investors Service, Inc.
ABS Monitoring Department
00 Xxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
ABS Monitoring Department
00 Xxxxxx Xxxxxx
Xxx Xxxx, Xxx Xxxx 00000
Fitch Ratings
00 X. Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: ABS Surveillance
00 X. Xxxxxx
Xxxxx 0000
Xxxxxxx, XX 00000
Attn: ABS Surveillance
Deutsche Bank Trust Company Americas
00 Xxxx Xxxxxx, 00xx Xxxxx,
XX NYC 60-2606,
Xxx Xxxx, XX 00000
Attention: Structured Finance Services/Trust and Securities Services—Xxxxx Xxxx
00 Xxxx Xxxxxx, 00xx Xxxxx,
XX NYC 60-2606,
Xxx Xxxx, XX 00000
Attention: Structured Finance Services/Trust and Securities Services—Xxxxx Xxxx
[Form of Certificate to be discussed]
Servicing Agreement
ANNEX A
to
SERVICING AGREEMENT
SERVICING AGREEMENT
dated as of
September 11, 2009
Definitions and Interpretation
Annex A to
Servicing Agreement
Servicing Agreement
SECTION 1. Definitions and Conventions. Capitalized terms used in the Servicing
Agreement shall have (unless otherwise provided elsewhere therein) the following respective
meanings:
“Accounting Changes” means, with respect to any Person an adoption of GAAP different
from such principles previously used for reporting purposes as defined in the Accounting Principles
Board Opinion Number 20.
“Additional Servicer” means each affiliate of the Servicer that services any of the
Loans and each Person who is not an affiliate of the Servicer, who services 10% or more of the
Loans.
“Administration Agreement” means the Administration Agreement, dated as of September
11, 2009, between the Administrator and the Issuer.
“Administration Fee” is defined in Section 3 of the Administration Agreement.
“Administrator” means General Electric Capital Corporation, in its capacity as
Administrator under the Administration Agreement, or any other Person designated as a successor
administrator.
“Affiliate” means, with respect to any Person, (a) each Person that, directly or
indirectly, owns or controls, whether beneficially, or as a trustee, guardian or other fiduciary,
five percent (5%) or more of the Stock having ordinary voting power in the election of directors of
such Person, (b) each Person that controls, is controlled by, or is under common control with such
Person, or (c) each of such Person’s officers, directors, joint venturers and partners. For the
purposes of this definition, “control” of a Person means the possession, directly or indirectly, of
the power to direct or cause the direction of its management or policies, whether through the
ownership of voting securities, by contract or otherwise.
“Annual Percentage Rate” or “APR” of a Loan means, the interest rate or annual
rate of finance charges stated in or, if not explicitly stated, the implicit finance charge used by
the Servicer to calculate periodic payments with respect to the related Loan.
“Appendices” means, with respect to any Related Document, all exhibits, schedules,
annexes and other attachments thereto, or expressly identified thereto.
“Authorized Officer” means, with respect to any corporation, trust or limited
liability company, as appropriate, the Chairman or Vice-Chairman of the Board, the President, any
Vice President, the Secretary, the Treasurer, any Assistant Secretary, any Assistant Treasurer, the
Managing Member, and each other officer, employee or member of such corporation, trust or limited
liability company, as appropriate, specifically or similar governing body of such limited liability
company or trust to sign agreements, instruments or other documents on behalf of such corporation
authorized in resolutions of the board of directors of such corporation or similar governing body
of such limited liability company or trust, as appropriate.
“Available Amounts” means, with respect to any Payment Date all payments made by or on
behalf of the Obligors (excluding any late fees, prepayment charges, assumption fees,
Annex A to
Servicing Agreement
Servicing Agreement
modifications and other administrative fees or similar charges allowed by applicable law with
respect to the Loans that constitute part of the Servicing Fees) received during the related
Collection Period; any Recoveries received during the related Collection Period; any proceeds from
insurance policies covering the Equipment or related Obligor received during the related Collection
Period; Liquidation Proceeds received with respect to the related Collection Period; the Purchase
Amount of each Loan that became a Purchased Loan during the related Collection Period (to the
extent deposited into the Collection Account); Investment Earnings for such Payment Date; Servicing
Advances received during the related Collection Period; and payments made by a lessee pursuant to
its obligation (if any) to pay the Termination Value pursuant to the related Loan received during
the related Collection Period; provided, however, that the Available Amounts shall
not include all payments or proceeds (including Liquidation Proceeds) of any Loans the Purchase
Amount of which has been included in the Available Amounts in a prior Collection Period;
provided further, with respect to the first Payment Date, Available Amounts will exclude
payments and proceeds of interest on the Loans from the Cut-off Date through August 31, 2009.
“Bankruptcy Code” means the provisions of title 11 of the United States Code, 11
U.S.C. §§ 101 et seq. as amended from time to time.
“Bankruptcy Event” means, as to any Person, any of the following events: (a) a case or
proceeding shall have been commenced against such Person seeking a decree or order in respect of
such Person (i) under the Bankruptcy Code or any other applicable federal, state or foreign
bankruptcy or other similar law, (ii) appointing a custodian, receiver, liquidator, assignee,
trustee or sequestrator (or similar official) for any such Person or for any substantial part of
such Person’s assets, or (iii) ordering the winding-up or liquidation of the affairs of any such
Person; or (b) such Person shall (i) file a petition seeking relief under the Bankruptcy Code or
any other applicable federal, state or foreign bankruptcy or other similar law, (ii) consent or
fail to object in a timely and appropriate manner to the institution of proceedings thereunder or
to the filing of any such petition or to the appointment of or taking possession by a custodian,
receiver, liquidator, assignee, trustee or sequestrator (or similar official) for such Person or
for any substantial part of such Person’s assets, (iii) make an assignment for the benefit of
creditors, or (iv) take any corporate action in furtherance of any of the foregoing.
“Business Day” means any day that is not a Saturday, a Sunday or a day on which banks
are required or permitted to be closed in the State of New York or the State of Connecticut.
“CEF Limited Liability Company Agreement” means the Second Amended and Restated
Limited Liability Company Agreement of CEF dated September 25, 2003 as the same may be amended and
supplemented from time to time.
“Class C Maturity Date” is defined in the Indenture.
“Closing Date” means September 11, 2009.
“Collateral” is defined in the Indenture.
Annex A to
Servicing Agreement
Servicing Agreement
-2-
“Collection Account” means the account designated as such, established and owned by
the Issuer and maintained in accordance with Section 8.2 of the Indenture.
“Collection Period” means, with respect to any Payment Date, the calendar month
preceding the month in which the Payment Date occurs (or, if for the first Payment Date, the period
from and including the day after the Cut-off Date to and including the last day of the calendar
month preceding the calendar month in which the first Payment Date occurs).
“Collections” is defined in the Indenture.
“Commission” means the Securities and Exchange Commission.
“Credit and Collection Policies” or “Credit and Collection Policy” means the
policies, practices and procedures adopted by the Issuer on the Closing Date for providing
equipment loans secured by transportation equipment, industrial equipment, construction equipment,
furniture and fixtures, maritime assets, printing presses, technology and telecommunications
equipment or other equipment, including the policies and procedures for determining the
creditworthiness of Obligors and the extension of credit to Obligors, or relating to the
maintenance of such types of loans and collections on such types of loans.
“Cut-off Date” is defined in the Indenture.
“Daily Deposit Event” means (i) a reduction in the Servicer’s rating below “A2” by
Moody’s or, if such rating is “A2” and is placed on a watch list for possible downgrade by Moody’s,
(ii) a reduction in the Servicer’s short-term rating below “P-1” by Moody’s, or (iii) the Servicer
is not a direct or indirect subsidiary of General Electric Company.
“Defaulted Loan” is defined in the Purchase and Sale Agreement.
“Determination Date” means with respect to any Transfer Date, the second Business Day
prior to such Transfer Date.
“Eligible Deposit Account” means: (a) a segregated deposit account maintained with a
depository institution or trust company whose short-term unsecured debt obligations are rated at
least “A-1+” by S&P and at least “P-1” by Moody’s, (b) a segregated account which is either (i)
maintained in the corporate trust department of the Indenture Trustee or (ii) maintained with a
depository institution or trust company whose long term unsecured debt obligations are rated at
least “BBB-” by S&P and at least “Baa3” by Moody’s, or (c) a segregated trust account or similar
account maintained with a federally or state chartered depository institution whose long term
unsecured debt obligations are rated at least “BBB-” by S&P and at least “Baa3” by Moody’s subject
to regulations regarding fiduciary funds on deposit substantially similar to 12 C.F.R. §9.10(b) in
effect on the Closing Date.
“Equipment” means any transportation equipment, industrial equipment, construction
equipment, maritime assets, printing presses, furniture and fixtures, technology and
telecommunications equipment or other equipment, together with all accessions thereto securing an
Obligor’s indebtedness under the respective Loan.
Annex A to
Servicing Agreement
Servicing Agreement
-3-
“Fitch” means Fitch, Inc. and its successors and assigns.
“GAAP” means generally accepted accounting principles in the United States of America
as in effect on the Closing Date, modified by Accounting Changes as GAAP is further defined in
Section 2(a) of this Annex A.
“GE Capital” means General Electric Capital Corporation, a Delaware corporation.
“GECITS” means GE Capital Information Technology Solutions, Inc, a California
corporation.
“Governmental Authority” is defined in the Sale Agreement.
“IFS” means Imaging Financial Services, Inc., a Delaware corporation.
“Indemnified Amounts” means, with respect to any Person, any and all suits, actions,
proceedings, claims, damages, losses, liabilities and expenses (including reasonable attorneys’
fees and disbursements and other costs of investigation or defense, including those incurred upon
any appeal).
“Indenture” means the Indenture, dated September 11, 2009, between the Issuer and the
Indenture Trustee, as the same may be amended and supplemented from time to time.
“Indenture Trustee” means Deutsche Bank Trust Company Americas, not in its individual
capacity but solely as Indenture Trustee under the Indenture, or any successor Indenture Trustee
under the Indenture.
“Investment Earnings” means, with respect to any Payment Date, the interest and other
investment earnings (net of losses and investment expenses) on amounts on deposit in the Trust
Accounts to be included as part of Collections pursuant to Section 8.6(a) of the Indenture.
“Issuer” means GE Equipment Midticket LLC, Series 2009-1, a Delaware limited liability
company, until a successor replaces it and, thereafter, means the successor and, for purposes of
any provision contained in the Indenture and required by the Trust Indenture Act of 1939, each
other obligor on the notes issued pursuant to the Indenture.
“Issuer Limited Liability Company Agreement” means the Limited Liability Company
Agreement of the Issuer, dated as of September 11, 2009, among the Managing Member and the Issuer,
as the same may be amended or supplemented from time to time.
“Lien” means a security interest (as such term is defined in Section 1-201 of Article
1 of the UCC), lien, charge, pledge, equity or encumbrance of any kind, other than tax liens,
mechanics’ liens and any liens that attach to the related Loan by operation of law as a result of
any act or omission by the related Obligor.
Annex A to
Servicing Agreement
Servicing Agreement
-4-
“Liquidated Loan” means any Loan (i) liquidated through the sale or other disposition
of all or a portion of the related Equipment or (ii) that has been charged off in its entirety in
accordance with the Credit and Collection Policy without realizing upon the Equipment.
“Liquidation Proceeds” means, with respect to any Liquidated Loan, the amounts
collected in respect thereof from whatever source (including the proceeds of insurance policies
with respect to the related Equipment or Obligor) during the Collection Period in which it became a
Liquidated Loan, net of the sum of any amounts expended in connection with such liquidation and any
amounts required by law to be remitted to the Obligor on such Liquidated Loan or any creditor of
such Obligor to the extent required by applicable law or agreement.
“Loan” means any loan included in the Schedule of Loans and any agreement (including
any invoice) pursuant to, or under which, an Obligor shall be obligated to make payments with
respect to any Loan.
“Loan Value” is defined in the Purchase and Sale Agreement.
“Managing Member” means CEF Equipment Holding, L.L.C., a Delaware limited liability
company or any successor Managing Member under the Issuer Limited Liability Company Agreement.
“Material Adverse Effect” means, with respect to any Person, a material adverse effect
on (a) the business, assets, liabilities, operations, prospects or financial or other condition of
such Person, (b) the ability of such Person to perform any of its obligations under the Related
Documents in accordance with the terms thereof, (c) the validity or enforceability of any Related
Document or the rights and remedies of such Person under any Related Document or (d) the Loans, as
applicable, therefor, any interest related thereto or the ownership interests or Liens of such
Person thereon or the priority of such interests or Liens.
“Moody’s” means Xxxxx’x Investors Service, Inc. or any successor thereto.
“Note Register” has the meaning specified in Section 2.4 of the Indenture.
“Noteholder” means the person in whose name a Note is registered on the Note Register.
“Notes” is defined in the Indenture.
“Obligor” means, as to each Loan, any Person who owes payments under the Loan.
“Officer’s Certificate” means, with respect to any Person, a certificate signed by an
Authorized Officer of such Person.
“Payment Date” means, with respect to each Collection Period, the 15th day
of the calendar month following the end of that Collection Period, or, if such day is not a
Business Day, the next Business Day, commencing on October 15, 2009.
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“Person” means any individual, sole proprietorship, partnership, joint venture,
unincorporated organization, trust, association, corporation (including a business trust), limited
liability company, institution, public benefit corporation, joint stock company, or government or
any agency or political subdivision thereof, or any other entity of whatever nature.
“Precomputed Loan” means any Loan under which the portion of a payment allocable to
earned interest (which may be referred to in the related Loan as an add-on finance charge) and the
portion allocable to principal are determined according to the sum of periodic balances, the sum of
monthly payments or any equivalent method or are monthly actuarial loans.
“Purchase Amount” means, as of the close of business on the last day of a Collection
Period, an amount equal to the Loan Value of the applicable Loan, as of the first day of the
immediately following Collection Period (or, with respect to any applicable Loan that is a
Liquidated Loan or Defaulted Loan, as of the day immediately prior to such Loan becoming a
Liquidated Loan or Defaulted Loan less any Liquidation Proceeds actually received by the Issuer)
plus interest accrued and unpaid thereon as of such last day at a rate per annum equal to the APR
for such Loan.
“Purchase and Sale Agreement” means that certain Loan Purchase and Sale Agreement,
dated as of September 11, 2009 by the Transferor and the Issuer, as the same may be amended from
time to time.
“Purchased Loan” means a Loan repurchased as of the close of business on the last day
of a Collection Period by a Seller pursuant to Section 6.2 of the Sale Agreement or repurchased as
of such time by the Transferor pursuant to Section 7.2 of the Purchase and Sale Agreement.
“Rating Agency” means each of Fitch and Xxxxx’x. If any of such organizations or its
successor is no longer in existence, the Issuer shall designate a nationally recognized statistical
rating organization or other comparable Person as a substitute Rating Agency, notice of which
designation shall be given to the Indenture Trustee and the Servicer.
“Rating Agency Condition” means, with respect to any action, that (i) Moody’s shall
have been given at least 10 Business Days’ prior notice thereof and shall have not notified the
Issuer and the Indenture Trustee that such action will result in a reduction or withdrawal of the
then current rating of any Class of the Notes and (ii) Fitch shall have been given at least 10
Business Days’ prior notice thereof, delivered electronically to
xxxxxxxxxxxxx.xxx@xxxxxxxxxxxx.xxx.
“Record Date” means, with respect to a Payment Date or Redemption Date, the close of
business on the Business Day preceding such Payment Date or Redemption Date, or, if Definitive
Notes are issued, the close of business on the last day of the calendar month preceding the month
of such Payment Date, whether or not such day is a Business Day, or if Definitive Notes were not
outstanding on such date, the date of issuance of the Definitive Notes.
“Records” means all notes, leases, security agreements and other documents, books,
records and other information (including computer programs, tapes, disks, data processing
software and related property and rights) prepared and maintained by any Seller, the Servicer,
any Sub-Servicer or the Issuer with respect to the Loan and the Obligors thereunder.
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“Recoveries” means, with respect to any Liquidated Loan, monies collected in respect
thereof, from whatever source (other than from the sale or other disposition of the Equipment),
after such Loan became a Liquidated Loan.
“Redemption Date” is defined in the Indenture.
“Regulation AB” means Subpart 229.1100 — Asset Backed Securities (Regulation AB), 17
C.F.R. §§229.1100-229.1123, as such may be amended from time to time, and subject to such
clarification and interpretation as have been provided by the Commission in the adopting release
(Asset-Backed Securities, Securities Act Release No. 33-8518, 70 Fed. Reg. 1,506, 1,531 (Jan. 7,
2005)) or by the staff of the Commission, or as may be provided by the Commission or its staff from
time to time.
“Related Documents” means the Sale Agreement, the Purchase and Sale Agreement, the
Servicing Agreement, the Indenture, the Issuer Limited Liability Agreement, the CEF Limited
Liability Company Agreement, the Administration Agreement and all other agreements, instruments,
and documents and including all other pledges, powers of attorney, consents, assignments,
contracts, notices, and all other written matter whether heretofore, now or hereafter executed by
or on behalf of any Person, or any employee of any Person, and delivered in connection with any of
the foregoing. Any reference in the foregoing documents to a Related Document shall include all
Appendices thereto, and all amendments, restatements, supplements or other modifications thereto,
and shall refer to such Related Document as the same may be in effect at any and all times such
reference becomes operative.
“Reporting Servicer” means the Servicer or a Servicing Function Participant, as the
case may be.
“Reserve Account” means the account designated as such, established and owned by the
Issuer and maintained in accordance with Section 8.2 of the Indenture.
“S&P” means Standard & Poor’s Ratings Services, a division of The XxXxxx-Xxxx
Companies, Inc., or any successor thereto.
“Sale Agreement” means the Loan Sale Agreement, dated September 11, 2009, among GE
Capital, GECITS, VFS, IFS and the Transferor.
“Schedules of Loans” means the schedules of Loans attached as Schedule I,
Schedule II, Schedule III and Schedule IV to the Sale Agreement and the
schedule attached as Schedule I to the Purchase and Sale Agreement (which schedules may be in the
form of microfiche).
“Scheduled Payment” on a Loan means that portion of the payment required to be made by
the Obligor during any Collection Period sufficient to amortize the principal balance under (x) in
the case of a Precomputed Loan, the actuarial method or (y) in the case of a Simple Interest
Loan, the simple interest method, in each case, over the term of the Loan and to provide
interest at the APR, provided that Termination Values shall also constitute Scheduled
Payments.
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“Securities Act” means the Securities Act of 1933 15 U.S.C. Section 77a et seq., as
amended, and any regulations promulgated thereunder.
“Securities Exchange Act” means the provisions of the Securities Exchange Act of 1934
15 U.S.C. Sections 78a et seq., as amended, and any regulations promulgated thereunder.
“Seller” means each of GE Capital, GECITS, VFS and IFS in its capacity as a seller,
and their respective successors and assigns.
“Servicer” means each of GE Capital, in its capacity as Servicer under this Agreement,
or any other Person designated as a Successor Servicer.
“Servicer Default” means an event specified in Section 5.1 of the Servicing
Agreement.
“Servicer Indemnified Person” is defined in Section 7.1 of the Servicing
Agreement.
“Servicer Termination Notice” is defined in Section 5.1 of the Servicing
Agreement.
“Servicer’s Certificate” means an Officer’s Certificate of the Servicer delivered
pursuant to Section 2.7 of the Servicing Agreement, substantially in the form of
Exhibit A thereto.
“Servicing Advance” means, the amount as of the Record Date, which the Servicer may,
but is not required to, advance pursuant to Section 2.5 of the Servicing Agreement.
“Servicing Agreement” means the Servicing Agreement, dated as of September 11, 2009
between the Servicer and the Issuer.
“Servicing Criteria” means the “servicing criteria” set forth in Item 1122(d) of
Regulation AB, as such may be amended from time to time.
“Servicing Fee” means, for any Collection Period, an amount equal to the product of
(a) the Servicing Fee Rate, (b) the average daily aggregate outstanding principal amount of Loans
as of the first day of such Collection Period and (c) a fraction equal to (i) the number of days in
such Collection Period, divided by (ii) 360; plus all late fees, prepayment fees,
assumption fees, modification fees, and other miscellaneous fees and amounts received during such
Collection Period.
“Servicing Fee Rate” means 0.35%.
“Servicing Function Participant” means any Person, other than the Servicer, that is
performing activities that address the Servicing Criteria, unless such Person’s activities relate
only to 5% or less of the Loans.
“Servicing Records” means all documents, books, Records and other information
(including computer programs, tapes, disks, data processing software and related property and
rights) prepared and maintained by the Servicer with respect to the related Loans and the
Obligors thereunder.
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“Simple Interest Loan” means any Loan under which the portion of a payment allocable
to interest and the portion allocable to principal is determined by allocating a fixed level
payment between principal and interest, such that such payment is allocated first to the accrued
and unpaid interest at the Annual Percentage Rate for such Loan on the unpaid principal balance and
the remainder of such payment is allocable to principal.
“Stock” means all shares, options, warrants, membership interests in a limited
liability company, general or limited partnership interests or other equivalents (regardless of how
designated) of or in a corporation, partnership or equivalent entity whether voting or nonvoting,
including common stock, preferred stock or any other “equity security” (as such term is defined in
Rule 3a11-1 of the General Rules and Regulations promulgated by the Securities and Exchange
Commission under the Securities Exchange Act).
“Stockholder” means, with respect to any Person, each holder of Stock of such Person.
“Sub-Servicer” means any Person with whom the Servicer enters into a Sub-Servicing
Agreement.
“Sub-Servicing Agreement” means any written contract entered into between the Servicer
and any Sub-Servicer pursuant to and in accordance with Section 2.10 relating to the
servicing, administration or collection of the Loans.
“Successor Servicer” is defined in Section 6.2.
“Termination Value” means the “Termination Value” (if any) payable by lessee pursuant
to the applicable Loan.
“Transfer Date” means the Business Day preceding the fifteenth day of each calendar
month.
“Transferor” means CEF Equipment Holding, L.L.C., a Delaware limited liability
company, as transferor under the Purchase and Sale Agreement.
“UCC” means, with respect to any jurisdiction, the Uniform Commercial Code as the same
may, from time to time, be enacted and in effect in such jurisdiction.
“VFS” means VFS Financing, Inc., a Delaware corporation.
SECTION 2. Other Interpretive Matters. All terms defined directly or by incorporation
in the Agreement shall have the defined meanings when used in any certificate or other document
delivered pursuant thereto unless otherwise defined therein. For purposes of the Agreement
(including this Annex A) and all certificates and other documents, unless the context
otherwise requires: (a) accounting terms not otherwise defined in the Agreement, and accounting
terms partly defined in the Agreement to the extent not defined, shall have the respective
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meanings given to them under GAAP; and unless otherwise provided, references to any month,
quarter or year refer to a fiscal month, quarter or year as determined in accordance with the GE
Capital fiscal calendar; (b) terms defined in Article 9 of the UCC and not otherwise defined in
such Agreement are used as defined in that Article; (c) references to any amount as on deposit or
outstanding on any particular date means such amount at the close of business on such day; (d) the
words “hereof,” “herein” and “hereunder” and words of similar import refer to such Agreement (or
the certificate or other document in which they are used) as a whole and not to any particular
provision of such Agreement (or such certificate or document); (e) references to any Section,
Schedule or Exhibit are references to Sections, Schedules and Exhibits in or to such Agreement (or
the certificate or other document in which the reference is made), and references to any paragraph,
subsection, clause or other subdivision within any Section or definition refer to such paragraph,
subsection, clause or other subdivision of such Section or definition; (f) the term “including”
means “including without limitation”; (g) references to any law or regulation refer to that law or
regulation as amended from time to time and include any successor law or regulation; (h) references
to any agreement refer to that agreement as from time to time amended, restated or supplemented or
as the terms of such agreement are waived or modified in accordance with its terms; (i) references
to any Person include that Person’s successors and assigns; and (j) headings are for purposes of
reference only and shall not otherwise affect the meaning or interpretation of any provision
hereof.
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