EXHIBIT 10.8
--------------------------------------------------------------------------------
NILT TRUST,
as Transferor,
and
NISSAN AUTO LEASING LLC II,
as Transferee
--------------------------------------
SUBI CERTIFICATE
TRANSFER AGREEMENT
Dated as of October 29, 2003
--------------------------------------
--------------------------------------------------------------------------------
SUBI CERTIFICATE TRANSFER AGREEMENT
This SUBI Certificate Transfer Agreement, dated as of October 29, 2003,
is between NILT Trust, a Delaware statutory trust ("NILT Trust"), as transferor
(the "Transferor"), and Nissan Auto Leasing LLC II, a Delaware limited liability
company ("XXXX II"), as transferee (the "Transferee").
RECITALS
A. Nissan-Infiniti LT (the "Titling Trust") is a Delaware statutory
trust governed by the Amended and Restated Trust and Servicing Agreement, dated
as of August 26, 1998 (the "Titling Trust Agreement"), by and among the NILT
Trust, as grantor and initial beneficiary (in such capacity, the "Grantor" and
the "UTI Beneficiary," respectively), Nissan Motor Acceptance Corporation, a
California corporation ("NMAC"), as Servicer (the "Servicer"), Wilmington Trust
Company, a Delaware banking corporation ("Wilmington Trust"), as Delaware
trustee ("Delware Trustee"), NILT, Inc., a Delaware corporation, as trustee (the
"Trustee"), and U.S. Bank National Association, a national banking association
("U.S. Bank"), as trust agent (the "Trust Agent");
B. Pursuant to the Titling Trust Agreement, the purposes of the Titling
Trust include taking assignments and conveyances of and holding in trust various
assets (the "Trust Assets");
C. NILT Trust, the Servicer, the Trustee, the Delaware Trustee and the
Trust Agent are entering into the 2003-A SUBI Supplement, dated as of October
29, 2003 (the "2003-A SUBI Supplement", and together with the Titling Trust
Agreement, the "SUBI Trust Agreement"), to (i) establish a special unit of
beneficial interest, the "2003-A SUBI" and (ii) identify and allocate certain
Trust Assets to the 2003-A SUBI;
D. Pursuant to the SUBI Trust Agreement a separate portfolio of leases
(the "2003-A Leases"), the vehicles that are leased under the 2003-A Leases (the
"2003-A Vehicles"), and certain other related Trust Assets have been allocated
to the 2003-A SUBI;
E. The Titling Trust has issued a certificate evidencing a 100%
beneficial interest in the 2003-A SUBI (the "2003-A SUBI Certificate") to the
Transferor;
F. The Transferor and the Transferee desire to provide for the sale,
transfer, and assignment by the Transferor to the Transferee, without recourse,
of all of the Transferor's right, title, and interest in the 2003-A SUBI
Certificate; and
G. Immediately after the transfer and assignment of the 2003-A SUBI
Certificate to the Transferee, the Transferee shall sell, transfer, and assign
all of its right, title and interest in the 2003-A SUBI Certificate to the
Nissan Auto Lease Trust 2003-A in connection with a securitization.
NOW, THEREFORE, in consideration of the mutual agreements herein
contained, and of other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the parties hereto agree as follows:
SUBI Certificate Transfer Agreement
2
ARTICLE ONE
DEFINITIONS
Section 1.01. Definitions. Capitalized terms used herein that are not
otherwise defined shall have the meanings ascribed thereto in the Agreement of
Definitions, dated as of October 29, 2003, by and among Nissan Auto Lease Trust
2003-A, as issuer (the "Issuer"), NILT Trust, as Grantor and Initial
Beneficiary, the Titling Trust, NMAC, in its individual capacity, as Servicer
and as administrative agent (in such capacity, the "Administrative Agent"), XXXX
II, the Trustee, Wilmington Trust, as Delaware Trustee and owner trustee (in
such capacity, the "Owner Trustee") and U.S. Bank, as Trust Agent and indenture
trustee (in such capacity, the "Indenture Trustee").
Section 1.02. Interpretive Provisions. For all purposes of this
Agreement, except as otherwise expressly provided or unless the context
otherwise requires, (i) terms used in this Agreement include, as appropriate,
all genders and the plural as well as the singular, (ii) references to words
such as "herein", "hereof", and the like shall refer to this Agreement as a
whole and not to any particular part, Article, or Section within this Agreement,
(iii) the term "include" and all variations thereof shall mean "include without
limitation", (iv) the term "or" shall include "and/or", (v) the term "proceeds"
shall have the meaning ascribed thereto in the UCC, and (vi) any defined term
that relates to a document shall include within its definition any amendments,
modifications, renewals, restatements, extensions, supplements, or substitutions
that have been or are hereafter executed and delivered in accordance with the
terms thereof, except that references to the SUBI Trust Agreement include only
such items as relate to the 2003-A SUBI and the Titling Trust.
Any reference in this 2003-A SUBI Certificate Transfer Agreement to any
agreement means such agreement as it may be amended, restated, supplemented
(only to the extent such agreement as supplemented relates to the Notes), or
otherwise modified from time to time, except that references to the SUBI Trust
Agreement include only such items as relate to the 2003-A SUBI and the Titling
Trust. Any reference in this 2003-A SUBI Certificate Transfer Agreement to any
law, statute, regulation, rule, or other legislative action shall mean such law,
statute, regulation, rule, or other legislative action as amended, supplemented,
or otherwise modified from time to time, and shall include any rule or
regulation promulgated thereunder. Any reference in this 2003-A SUBI Certificate
Transfer Agreement to a Person shall include the successor or assignee of such
Person.
ARTICLE TWO
TRANSFER OF 2003-A SUBI CERTIFICATE
Section 2.01. Transfer of 2003-A SUBI Certificate.
In consideration of the Transferee's delivery to, or upon the order of,
the Transferor of $1,437,059,516.90 (the "Transfer Price") in cash by federal
wire transfer (same day) funds, of which an amount equal to approximately 15.89%
of the Transfer Price will represent the proceeds of a capital contribution from
NMAC to the Transferee, the Transferor hereby
SUBI Certificate Transfer Agreement
3
absolutely sells, transfers, assigns, and otherwise conveys to the Transferee,
without recourse, and the Transferee does hereby purchase and acquire, as of the
date set forth above, all of the Transferor's right, title, and interest in and
to the following (collectively, the "Assets"):
(i) the 2003-A SUBI Certificate and the interest in the
2003-A SUBI represented thereby, including all monies due and paid or
to become due and paid or payable thereon or in respect thereof;
(ii) all of the Transferor's rights and benefits as holder
of the 2003-A SUBI Certificate under the Servicing Agreement and the
SUBI Trust Agreement;
(iii) the right to realize upon any property that underlies
or may be deemed to secure the interest in the 2003-A SUBI represented
by the 2003-A SUBI Certificate, as granted in the 2003-A SUBI
Supplement and in the 2003-A SUBI Certificate;
(iv) all general intangibles, chattel paper, instruments,
documents, money, deposit accounts, certificates of deposit, securities
accounts, investment property, financial assets, goods, letters of
credit, letters of credit rights, advices of credit and uncertificated
securities, and other property consisting of, arising from, or relating
or credited to the foregoing; and
(v) all cash and non-cash proceeds of all of the
foregoing.
Section 2.02. True Sale. The parties hereto intend that the sale,
transfer, and assignment of the Assets constitutes a true sale and assignment of
the Assets such that any interest in and title to the Assets would not be
property of the Transferor's estate in the event that the Transferor becomes a
debtor in a case under any bankruptcy law. To the extent that the conveyance of
the Assets hereunder is characterized by a court or similar governmental
authority as a financing, it is intended by the Transferor and the Transferee
that the interest conveyed constitutes a grant of a security interest under the
UCC as in effect in the State of Delaware by the Transferor to the Transferee to
secure the Transfer Price to the Transferor, which security interest shall be
perfected and of a first priority. The Transferor hereby grants to the
Transferee a security interest in all of its right, title, and privilege and
interest in and to the Assets and the parties hereto agree that this Agreement
constitutes a "security agreement" under all applicable laws.
Section 2.03. Representations and Warranties of the Transferor and the
Transferee.
(a) The Transferor hereby represents and warrants to the Transferee as
of the date of this Agreement and the Closing Date that:
(i) Organization and Good Standing. The Transferor is a
statutory trust duly formed, validly existing, and in good standing
under the laws of the State of Delaware, and has the power and the
authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently
conducted, and had at all relevant times, and shall have, power,
authority and legal right to acquire, own and sell the Assets.
SUBI Certificate Transfer Agreement
4
(ii) Due Qualification. The Transferor is duly qualified
to do business as a foreign business trust in good standing, and has
obtained all necessary licenses and approvals in all jurisdictions in
which the ownership or lease of property or the conduct of its business
shall require such qualifications, except where the failure to have any
such license, approval, or qualification would not have a Material
Adverse Effect on the Transferor.
(iii) Power and Authority. The Transferor has the power and
authority to execute and deliver this Agreement and to carry out its
terms; and the execution, delivery, and performance of this Agreement
has been duly authorized by the Transferor by all necessary action.
(iv) Binding Obligation. This Agreement constitutes a
legal, valid, and binding obligation of the Transferor, enforceable
against it in accordance with its terms, except as enforceability may
be subject to or limited by bankruptcy, insolvency, reorganization,
moratorium, liquidation, or other similar laws affecting the
enforcement of creditors' rights in general and by general principles
of equity, regardless of whether such enforceability shall be
considered in a proceeding in equity or at law.
(v) No Violation. The execution, delivery, and
performance by the Transferor of this Agreement, the consummation of
the transactions contemplated by this Agreement, and the fulfillment of
the terms hereof do not (A) conflict with, or result in any breach of
any of the terms and provisions of, or constitute (with or without
notice or lapse of time) a default under the Transferor's trust
agreement, or (B) conflict with or breach any of the material terms or
provisions of, or constitute (with or without notice or lapse of time)
a default under any indenture, agreement or other instrument to which
the Transferor is a party or by which it may be bound or any of its
properties are subject; or (C) result in the creation or imposition of
any Lien upon any of its properties pursuant to the terms of any
material indenture, agreement, or other instrument (other than as
permitted by the Basic Documents); or (D) violate any law or, to the
knowledge of the Transferor, any order, rule, or regulation applicable
to it or its properties, or (E) contravene, violate, or result in a
default under any judgment, injunction, order, decree, or other
instrument of any court or of any federal or state regulatory body,
administrative agency or other governmental instrumentality having
jurisdiction over the Transferor or any of its properties, except to
the extent that such contravention, violation, or default would not be
likely to have a Material Adverse Effect.
(vi) No Proceedings. There are no proceedings in which the
Transferor has been served or, to the knowledge of the Transferor,
proceedings or investigations that are pending or threatened in each
case against the Transferor, before any court, regulatory body,
administrative agency or other tribunal, or governmental
instrumentality (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (C) seeking any determination or
ruling that, in the reasonable judgment of the Transferor, could
reasonably be expected to materially and adversely affect the
performance by the Transferor of its obligations under this Agreement.
SUBI Certificate Transfer Agreement
5
(vii) Title to 2003-A SUBI Certificate. Immediately prior
to the transfer of the 2003-A SUBI Certificate pursuant to this
Agreement, the Transferor (A) is the true and lawful owner of the
2003-A SUBI Certificate and it has the legal right to transfer the
2003-A SUBI Certificate, (B) has good and valid title to the 2003-A
SUBI Certificate and the 2003-A SUBI Certificate is on the date hereof
free and clear of all Liens and (C) will convey good, valid, and
indefeasible title to the 2003-A SUBI Certificate to the Transferee
under this Agreement.
(b) The Transferee hereby represents and warrants to the Transferor as
of the date of this Agreement and the Closing Date that:
(i) Organization and Good Standing. The Transferee is a
limited liability company duly organized, validly existing, and in good
standing under the laws of the State of Delaware, has the power and the
authority to own its properties and to conduct its business as such
properties are currently owned and such business is presently
conducted, and had at all relevant times, and shall have, power,
authority, and legal right to acquire, own and sell the Assets.
(ii) Due Qualification. The Transferee is duly qualified
to do business 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 property or the
conduct of its business shall require such qualifications, except where
the failure to have any such license, approval or qualification would
not have a Material Adverse Effect on the condition, financial or
otherwise, of the Transferee or would not have a Material Adverse
Effect on the ability of the Transferee to perform its obligations
under this Agreement.
(iii) Power and Authority. The Transferee has the power and
authority to execute and deliver this Agreement and to carry out its
terms; and the execution, delivery, and performance of this Agreement
has been duly authorized by the Transferee by all necessary action.
(iv) Binding Obligation. This Agreement constitutes a
legal, valid, and binding obligation of the Transferee, enforceable
against it in accordance with its terms, except as enforceability may
be subject to or limited by bankruptcy, insolvency, reorganization,
moratorium, liquidation, or other similar laws affecting the
enforcement of creditors' rights in general and by general principles
of equity, regardless of whether such enforceability shall be
considered in a proceeding in equity or at law.
(v) No Violation. The execution, delivery, and
performance of this Agreement by the Transferee and the consummation of
the transactions contemplated by this Agreement and the fulfillment of
the terms hereof do not (A) conflict with, result in any breach of any
of the terms and provisions of, or constitute (with or without notice
or lapse of time) a default under, the limited liability company
agreement of the Transferee; or (B) conflict with or breach any of the
material terms or provisions of, or constitute (with or without notice
or lapse of time) a default under, any indenture, agreement, or other
instrument to which the Transferee is a party or by which it may be
bound or any of
SUBI Certificate Transfer Agreement
6
its properties are subject; or (C) result in the creation or imposition
of any Lien upon any of its properties pursuant to the terms of any
material indenture, agreement, or other instrument (other than as
permitted by the Basic Documents); or (D) violate any law or, to the
knowledge of the Transferee, any order, rule, or regulation applicable
to it or its properties; or (E) contravene, violate, or result in a
default under any judgment, injunction, order, decree, or other
instrument of any court or of any federal or state regulatory body,
administrative agency, or other governmental instrumentality having
jurisdiction over the Transferee or any of its properties, except to
the extent that such contravention, violation, or default would not be
likely to have a Material Adverse Effect.
(vi) No Proceedings. There are no proceedings in which the
Transferee has been served or, to the knowledge of the Transferee,
proceedings or investigations that are pending or threatened, in each
case against the Transferee, before any court, regulatory body,
administrative agency, or other tribunal or governmental
instrumentality (A) asserting the invalidity of this Agreement, (B)
seeking to prevent the consummation of any of the transactions
contemplated by this Agreement or (C) seeking any determination or
ruling that, in the reasonable judgment of the Transferee, would
materially and adversely affect the performance by the Transferee of
its obligations under this Agreement.
(c) The representations and warranties set forth in this Section shall
survive the sale of the Assets by the Transferor to the Transferee and the sale
of the Assets by the Transferee to the Trust. Upon discovery by the Transferor,
the Transferee, or the Trustee of a breach of any of the foregoing
representations and warranties, the party discovering such breach shall give
prompt written notice to the others.
Section 2.04. Financing Statement and Books and Records.
(a) In connection with the conveyance of the Assets hereunder, the
Transferor agrees that prior to the Closing Date it will deliver to the
Transferee, with all requisite endorsements, the 2003-A SUBI Certificate and
will file, at its own expense, one or more financing statements with respect to
the Assets meeting the requirements of applicable state law in such manner as
necessary to perfect the sale of the Assets, and the proceeds thereof to the
Transferor (and any continuation statements as are required by applicable state
law), and to deliver a file-stamped copy of each such financing statement (or
continuation statement) or other evidence of such filings (which may, for
purposes of this Section 2.04, consist of telephone confirmation of such filings
with the file stamped copy of each such filing to be provided to the Transferee
in due course), as soon as is practicable after receipt by the Transferor
thereof.
(b) The Transferor further agrees that it will treat the transfer of
the Assets as a sale for accounting purposes, take no actions inconsistent with
the Transferee's ownership of the Assets and on or prior to the Closing Date
indicate on its books, records, and statements that the Assets have been sold to
the Transferee.
Section 2.05. Acceptance by the Transferee. The Transferee agrees to
comply with all covenants and restrictions applicable to a Holder of the 2003-A
SUBI Certificate and the interest in the 2003-A SUBI represented thereby,
whether set forth in the 2003-A SUBI Certificate, in
SUBI Certificate Transfer Agreement
7
the SUBI Trust Agreement, or otherwise, and assumes all obligations and
liabilities, if any, associated therewith.
Section 2.06. Release of Claims. Pursuant to Section 3.04(b) of the
Titling Trust Agreement and Section 12.02(b) of the 2003-A SUBI Supplement, the
Transferee hereby covenants and agrees for the express benefit of each holder
from time to time of a UTI Certificate and any other SUBI Certificate that the
Transferee shall release all claims to the UTI Assets and the related Other SUBI
Assets, respectively, and, in the event such release is not given effect, to
subordinate fully all claims it may be deemed to have against the UTI Assets or
such Other SUBI Assets, as the case may be.
ARTICLE THREE
MISCELLANEOUS
Section 3.01. Amendment. This Agreement may be amended from time to
time in a writing signed by the parties hereto.
Section 3.02. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without regard
to any otherwise applicable principles of conflict of laws (other than Section
5-1401 of the New York General Obligations Law).
Section 3.03. Severability. If one or more of the covenants,
agreements, or provisions of this Agreement shall be, for any reason whatever,
held invalid or unenforceable, such provisions shall be deemed severable from
the remaining covenants, agreements, and provisions of this Agreement, and such
invalidity or unenforceability shall in no way affect the validity or
enforceability of such remaining covenants, agreements, and provisions, or the
rights of any parties hereto. To the extent permitted by law, the parties hereto
waive any provision of law that renders any provision of this Agreement invalid
or unenforceable in any respect.
Section 3.04. Binding Effect. The provisions of this Agreement shall be
binding upon and inure to the benefit of the parties hereto and their permitted
successors and assigns.
The Transferor acknowledges and agrees that (a) (i) the Transferee may,
pursuant to the Trust SUBI Certificate Transfer Agreement, transfer and assign
the 2003-A SUBI and the 2003-A SUBI Assets represented thereby and assign its
rights under this Agreement to Nissan Auto Lease Trust 2003-A and (ii) the
representation, warranties, and covenants contained in this Agreement and the
rights of the Transferee under this Agreement are intended to benefit Nissan
Auto Lease Trust 2003-A; and (b) (i) Nissan Auto Lease Trust 2003-A may,
pursuant to the Indenture, pledge and grant a security interest in the 2003-A
SUBI and the 2003-A SUBI Assets represented thereby and assign its rights under
this Agreement to the Indenture Trustee and (ii) the representation, warranties,
and covenants contained in this Agreement and the rights of the Transferee under
this Agreement are intended to benefit the Indenture Trustee (for the benefit of
the holders of the Notes). The Transferor hereby consents to all such transfers,
assigns, pledges and grants.
Section 3.05. Headings. The Article and Section headings are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.
SUBI Certificate Transfer Agreement
8
Section 3.06. Counterparts. This Agreement may be executed in any
number of counterparts, each of which so executed and delivered shall be deemed
to be an original, but all of which counterparts shall together constitute but
one and the same instrument.
Section 3.07. Further Assurances. Each party hereto shall do such acts,
and execute and deliver to the other party such additional documents or
instruments as may be reasonably requested, in order to effect the purposes of
this Agreement and to better assure and confirm unto the requesting party its
rights, powers and remedies hereunder.
Section 3.08. Third-Party Beneficiaries. This Agreement shall inure to
the benefit of and be binding upon the parties hereto and each Holder of the
2003-A SUBI Certificate and each Registered Pledgee, who shall be considered
third-party beneficiaries hereof. Except as otherwise provided in this
Agreement, no other Person shall have any right or obligation hereunder.
Section 3.09. No Petition. Each of the parties hereto covenants and
agrees that prior to the date that is one year and one day after the date upon
which all obligations under each Securitized Financing have been paid in full,
it will not institute against, or join any other Person in instituting against
any other party hereto, any Grantor, the Owner Trustee, the Trustee, any Special
Purpose Affiliate, any member of a Special Purpose Affiliate that is a limited
liability company, or the trustee of the Grantor, any bankruptcy,
reorganization, arrangement, insolvency, or liquidation proceeding or other
proceedings under any federal or state bankruptcy or similar law.
This Section shall survive the complete or partial termination
of this Agreement, the resignation or removal or the Trustee and the complete or
partial resignation or removal of the Servicer.
Section 3.10. No Recourse. It is expressly understood and agreed by the
parties hereto that (a) this Agreement is executed and delivered by U.S. Bank,
not individually or personally, but solely as trustee of NILT Trust, in the
exercise of the powers and authority conferred and vested in it, (b) each of the
representations, undertakings, and agreements herein made on the part of the
Transferor, as it relates to NILT Trust, is made and intended not as personal
representations, undertakings, and agreements by U.S. Bank, but is made and
intended for the purpose of binding only NILT Trust, (c) nothing herein
contained shall be construed as creating any liability on U.S. Bank,
individually or personally, to perform any covenant, either expressed or
implied, contained herein, all such liability, if any, being expressly waived by
the parties hereto and by any Person claiming by, through or under the parties
hereto, and (d) under no circumstances shall U.S. Bank be personally liable for
the payment of any indebtedness or expenses of NILT Trust under this Agreement
or any other related documents.
SUBI Certificate Transfer Agreement
9
IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed by their respective officers duly authorized as of the day and
year first above written.
NILT TRUST, as Transferor
By: U.S. BANK NATIONAL ASSOCIATION,
as Managing Trustee
By: /s/ Xxxxxxxx X. Child
---------------------------
Name: Xxxxxxxx X. Child
Title: Vice President
NISSAN AUTO LEASING LLC II, as
Transferee
By: /s/ Xxxx Xxxxxx
-------------------------------
Name: Xxxx Xxxxxx
Title: Treasurer
SUBI Certificate Transfer Agreement
S-1
