SUBI TRANSFER AGREEMENT dated as of November 4, 2010 between VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN FUNDING, LLC, as Seller and VOLKSWAGEN AUTO LEASE TRUST 2010-A, as Buyer
Exhibit 10.4
dated as of November 4, 2010
between
VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN FUNDING, LLC,
as Seller
as Seller
and
as Buyer
TABLE OF CONTENTS
| Page | ||||
ARTICLE I DEFINITIONS |
2 | |||
SECTION 1.1 Certain Terms |
2 | |||
SECTION 1.2 Other Definitional Provisions |
2 | |||
SECTION 1.3 Other Terms |
2 | |||
SECTION 1.4 Computation of Time Periods |
2 | |||
ARTICLE II PURCHASE AND CONTRIBUTION |
2 | |||
SECTION 2.1 Agreement to Sell and Transfer Transaction SUBI |
2 | |||
SECTION 2.2 Consideration and Payment |
3 | |||
SECTION 2.3 Representations and Warranties |
3 | |||
SECTION 2.4 Protection of Title |
4 | |||
SECTION 2.5 Other Adverse Claims or Interests |
5 | |||
ARTICLE III MISCELLANEOUS |
5 | |||
SECTION 3.1 Transfers Intended as Sale; Security Interest |
5 | |||
SECTION 3.2 Specific Performance |
6 | |||
SECTION 3.3 Notices, Etc |
6 | |||
SECTION 3.4 Choice of Law |
6 | |||
SECTION 3.5 Counterparts |
7 | |||
SECTION 3.6 Amendment |
7 | |||
SECTION 3.7 Waivers |
8 | |||
SECTION 3.8 Entire Agreement |
8 | |||
SECTION 3.9 Severability of Provisions |
8 | |||
SECTION 3.10 Binding Effect; Assignability |
8 | |||
SECTION 3.11 Acknowledgment and Agreement |
8 | |||
SECTION 3.12 Cumulative Remedies |
8 | |||
SECTION 3.13 Non-petition Covenant |
9 | |||
SECTION 3.14 Each SUBI Separate; Assignees of SUBI |
9 | |||
SECTION 3.15 Submission to Jurisdiction; Waiver of Jury Trial |
10 | |||
SECTION 3.16 Limitation of Liability of Owner Trustee |
10 | |||
Schedule I Perfection Representations, Warranties and Covenants
-i-
THIS SUBI TRANSFER AGREEMENT (as amended, supplemented or modified from time to time, this
“Agreement”) is made and entered into as of November 4, 2010 by VOLKSWAGEN AUTO LEASE/LOAN
UNDERWRITTEN FUNDING, LLC, a Delaware limited liability company (the “Seller”), and
VOLKSWAGEN AUTO LEASE TRUST 2010-A, a Delaware statutory trust (the “Buyer”).
WITNESSETH:
WHEREAS, VW Credit Leasing, Ltd. is a Delaware statutory trust (the “Origination
Trust”) formed and operated pursuant to that certain Trust Agreement dated as of June 2, 1999
(as amended, modified or supplemented from time to time, the “Origination Trust Agreement”)
for the purpose, among other things, of acquiring title to Units;
WHEREAS, on the date hereof, the Seller purchased the Transaction SUBI and the Transaction
SUBI Certificate (each as defined below) from VW Credit, Inc., a Delaware corporation
(“VCI”), pursuant to a SUBI Sale Agreement (the “SUBI Sale Agreement”);
WHEREAS, the Seller, as depositor, and Citibank, N.A., as owner trustee (the “Owner
Trustee”), formed Volkswagen Auto Lease Trust 2010-A as a Delaware statutory trust pursuant to
a Trust Agreement;
WHEREAS, on the date hereof, VCI, as owner of the entire undivided interest in the Origination
Trust (the “UTI Portfolio”), and U.S. Bank National Association, as UTI Trustee (in such
capacity, the “UTI Trustee”), SUBI Trustee (in such capacity, the “SUBI Trustee”)
and Administrative Trustee (in such capacity, the “Administrative Trustee”; together with
the UTI Trustee, the SUBI Trustee and Wilmington Trust Company, as Delaware Trustee (the
“Delaware Trustee”), the “Origination Trustees”), are entering into that certain
Transaction SUBI Supplement 2010-A to Origination Trust Agreement (as amended, modified or
supplemented from time to time, the “Transaction SUBI Supplement”) to create a special unit
of beneficial interest (the “Transaction SUBI”);
WHEREAS, the Seller desires to sell to the Buyer, and the Buyer desires to acquire, the
Seller’s entire beneficial ownership interest in (A) the Units allocated to the Transaction SUBI
(the “Transaction SUBI Portfolio”) and (B) the certificate issued as evidence thereof (the
“Transaction SUBI Certificate”);
WHEREAS, the Seller desires to assign rights under the SUBI Sale Agreement to the Buyer; and
WHEREAS, the Buyer will finance its acquisition of the Transaction SUBI Portfolio and the
Transaction SUBI Certificate by issuing notes pursuant to an Indenture dated as of November 4, 2010
(as amended, supplemented or modified from time to time, the “Indenture”) with Deutsche
Bank Trust Company Americas, as indenture trustee (the “Indenture Trustee”);
NOW, THEREFORE, in consideration of the premises and the mutual agreements set forth herein,
the parties hereto agree as follows:
SUBI Transfer Agreement (2010-A)
ARTICLE I
DEFINITIONS
SECTION 1.1 Certain Terms. Terms defined in Appendix A to the Indenture are,
unless otherwise defined herein or unless the context otherwise requires, used herein as defined
therein. In addition, the following terms shall have the following meanings (such terms applicable
to both the singular and plural form):
“Allocation Price” means, with respect to any Unit, an amount equal to 100% of the
Securitization Value thereof as of the Cut-Off Date.
“SUBI Allocation Price” means, with respect to all Units to be allocated to the
Transaction SUBI on the Closing Date, the aggregate of the Allocation Prices for all Units to be so
allocated on such date.
SECTION 1.2 Other Definitional Provisions.
(a) Each term defined in the singular form in this Agreement shall mean the plural thereof
when the plural form of such term is used in this Agreement or any certificate, report or other
document made or delivered pursuant hereto, and each term defined in the plural form shall mean the
singular thereof when the singular form of such term is used herein or therein.
(b) The words “hereof”, “herein”, “hereunder” and similar terms when used in this Agreement
shall refer to this Agreement as a whole and not to any particular provision of this Agreement.
Article, section, subsection, schedule and exhibit references herein are references to articles,
sections, subsections, schedules and exhibits to or of this Agreement unless otherwise specified.
The term “include” and all variations thereon shall mean “include without limitation” and the term
“or” shall include “and/or”.
SECTION 1.3 Other Terms. All accounting terms not specifically defined herein or in
Appendix A to the Indenture shall be construed in accordance with GAAP. All terms used in
Article 9 of the UCC and not specifically defined herein or in Appendix A to the Indenture
are used herein as defined in such Article 9.
SECTION 1.4 Computation of Time Periods. Unless otherwise stated in this Agreement,
in the computation of a period of time from a specified date to a later specified date, the word
“from” means “from and including” and the words “to” and “until” each mean “to but excluding”.
ARTICLE II
PURCHASE AND CONTRIBUTION
SECTION 2.1 Agreement to Sell and Transfer Transaction SUBI.
On the terms and subject to the conditions set forth in this Agreement, on the date hereof,
the Seller hereby:
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(a) transfers, assigns, sets over, sells and otherwise conveys to the Buyer, and the Buyer
hereby purchases from the Seller, all of the Seller’s right, title and interest in and to the
Transaction SUBI Certificate and the Transaction SUBI, including, but not limited to, all
Collections thereunder after the Cut-Off Date; and
(b) assigns all rights of the Seller under the SUBI Sale Agreement to the Buyer, including
without limitation, the Seller’s rights under Section 2.3(c) of the SUBI Sale Agreement.
SECTION 2.2 Consideration and Payment. In consideration of the transfer of the
Transaction SUBI, the Transaction SUBI Certificate and the other property conveyed to the Buyer
pursuant to Section 2.1 on the Closing Date, the Buyer shall pay to the Seller on the
Closing Date the SUBI Allocation Price with respect thereto by delivering to, or upon the order of,
the Seller, all of the Notes and the Certificate on the Closing Date.
SECTION 2.3 Representations and Warranties.
(a) The Seller hereby represents and warrants to the Buyer that, as of the date hereof:
(i) Existence and Power. The Seller is a limited liability company duly organized,
validly existing and in good standing under the laws of its state of organization and has
all power and authority required to carry on its business as it is now conducted. The
Seller has obtained all necessary licenses and approvals in all jurisdictions where the
failure to do so would materially and adversely affect the business, properties, financial
condition or results of operations of the Seller taken as a whole.
(ii) Company Authorization and No Contravention. The execution, delivery and
performance by the Seller of each Transaction Document to which it is a party (i) have been
duly authorized by all necessary limited liability company action and (ii) do not contravene
or constitute a default under (A) any applicable law, rule or regulation, (B) its
organizational documents or (C) any agreement, contract, order or other instrument to which
it is a party or its property is subject and (iii) will not result in any Adverse Claim on
the Transaction SUBI or give cause for the acceleration of any indebtedness of the Seller.
(iii) No Consent Required. No approval, authorization or other action by, or filing
with, any Governmental Authority is required in connection with the execution, delivery and
performance by the Seller of any Transaction Document other than UCC filings and other than
approvals and authorizations that have previously been obtained and filings which have
previously been made.
(iv) Binding Effect. Each Transaction Document to which the Seller is a party
constitutes the legal, valid and binding obligation of the Seller enforceable against the
Seller in accordance with its terms, except as limited by bankruptcy, insolvency, or other
similar laws of general application relating to or affecting the enforcement of creditors’
rights generally and subject to general principles of equity.
SUBI Transfer Agreement (2010-A)
3
(v) Ownership and Transfer of Transaction SUBI. Immediately preceding its sale of the
Transaction SUBI and the Transaction SUBI Certificate to the Buyer, the Seller was the owner
of the Transaction SUBI and the Transaction SUBI Certificate, free and clear of any Adverse
Claim, and after such sale of the Transaction SUBI and the Transaction SUBI Certificate to
the Buyer, the Buyer shall at all times be entitled, with respect to the Transaction SUBI
and the Transaction SUBI Certificate, to all of the rights and benefits of a holder of a
SUBI and a SUBI Certificate under the Origination Trust Documents.
(vi) Applicable Law. The Seller is in compliance with all Applicable Laws, the failure
to comply with which would have a material adverse effect.
(vii) Litigation. There are no actions, suits or Proceedings pending or, to the
knowledge of the Seller, threatened against the Seller before or by any Governmental
Authority that (i) question the validity or enforceability of this Agreement or adversely
affect the ability of the Seller to perform its obligations hereunder or (ii) individually
or in the aggregate would have a material adverse effect. The Seller is not in default with
respect to any orders of any Governmental Authority, the default under which individually or
in the aggregate would have a material adverse effect.
(viii) Status of Seller. The Seller is not an “investment company” within the meaning
of the Investment Company Act of 1940, as amended. The Seller is not subject to regulation
as a “holding company”, an “affiliate” of a “holding company”, or a “subsidiary company” of
a “holding company”, within the meaning of the Public Utility Holding Company Act of 1935,
as amended.
The representations and warranties set forth in this Section 2.3(a) shall speak only
as of the date hereof and shall survive the sale of the Transaction SUBI hereunder.
(b) Perfection Representations. The representations, warranties and covenants set
forth on Schedule I hereto shall be a part of this Agreement for all purposes.
Notwithstanding any other provision of this Agreement or any other Transaction Document, the
perfection representations contained in Schedule I shall be continuing, and remain in full
force and effect until such time as all obligations under the Indenture have been finally and fully
paid and performed. The parties to this Agreement: (i) shall not waive any of the perfection
representations contained in Schedule I; (ii) shall provide the Rating Agencies with prompt
written notice of any breach of perfection representations contained in this Schedule and
(iii) shall not waive a breach of any of the perfection representations contained in Schedule
I.
SECTION 2.4 Protection of Title.
(a) Filings. The Seller shall file such financing statements and cause to be filed
such continuation and other statements, all in such manner and in such places as may be required by
law fully to preserve, maintain and protect the interest of the Buyer under this Agreement in the
Transaction SUBI, the Transaction SUBI Certificate and the Seller’s rights under the SUBI Sale
Agreement. The Seller shall deliver (or cause to be delivered) to the Buyer file-stamped copies
SUBI Transfer Agreement (2010-A)
4
of, or filing receipts for, any document filed as provided above, as soon as available
following such filing.
(b) Name Change. The Seller shall not change its name, identity or limited liability
company structure in any manner that would, could, or might make any financing statement or
continuation statement filed by the Seller in accordance with Section 2.4(a) “seriously
misleading” within the meaning of Section 9-506, 9-507 and 9-508 of the UCC, unless it shall have
given the Buyer at least 5 Business Days’ prior written notice thereof and shall have taken all
action prior to making such change (or shall have made arrangements to take such action
substantially simultaneously with such change, if it is not practicable to take such action in
advance) reasonably necessary or advisable in the opinion of the Buyer to amend all previously
filed financing statements or continuation statements described in Section 2.4(a).
(c) Sales Tax. All sales, property, use, transfer or other similar taxes due and
payable upon the purchase of the Transaction SUBI and the beneficial interest in the Units included
in the Transaction SUBI Portfolio by the Buyer will be paid or provided for by the Seller.
(d) Location; Maintenance of Offices. The Seller shall give the Buyer at least 5
Business Days’ prior written notice of any change of location of the Seller for purposes of Section
9-307 of the UCC and shall have taken all action prior to making such change (or shall have made
arrangements to take such action substantially simultaneously with such change, if it is not
practicable to take such action in advance) reasonably necessary or advisable in the opinion of the
Buyer to amend all previously filed financing statements or continuation statements described in
Section 2.4(a). The Seller shall at all times maintain its principal executive office
within the United States of America.
SECTION 2.5 Other Adverse Claims or Interests. Except for the conveyances and grants
of security interests pursuant to this Agreement and the other Transaction Documents, the Seller
shall not sell, pledge, assign or transfer the Transaction SUBI to any other Person, or grant,
create, incur, assume or suffer to exist any Adverse Claim on any interest therein, and the Seller
shall defend the right, title and interest of the Buyer in, to and under the Transaction SUBI
against all claims of third parties claiming through or under the Seller.
ARTICLE III
MISCELLANEOUS
SECTION 3.1 Transfers Intended as Sale; Security Interest.
(a) Each of the parties hereto expressly intends and agrees that the transfers contemplated
and effected under this Agreement are complete and absolute sales and contributions rather than
pledges or assignments of only a security interest and shall be given effect as such for all
purposes. The sale and contribution of the Transaction SUBI, the Transaction SUBI Certificate, the
Transaction SUBI Certificate and the Seller’s rights under the SUBI Sale Agreement shall be
reflected on the Seller’s balance sheet and other financial statements as a sale and contribution
of assets by the Seller. The sales and contributions by the Seller of the Transaction SUBI and the
Transaction SUBI Certificate and the beneficial interest
SUBI Transfer Agreement (2010-A)
5
in the Units allocated thereto hereunder are and shall be without recourse to, or
representation or warranty (express or implied) by, the Seller, except as otherwise specifically
provided herein. The limited rights of recourse specified herein against the Seller are intended
to provide a remedy for breach of representations and warranties relating to the condition of the
property sold, rather than to the collectibility of underlying indebtedness.
(b) Notwithstanding the foregoing, in the event that the Transaction SUBI, the Transaction
SUBI Certificate and the Seller’s rights under the SUBI Sale Agreement are held to be property of
the Seller, or if for any reason this Agreement is held or deemed to create a security interest in
the Transaction SUBI, the Transaction SUBI Certificate and the Seller’s rights under the SUBI Sale
Agreement, then it is intended that:
(i) This Agreement shall be deemed to be a security agreement within the meaning of
Articles 8 and 9 of the New York UCC and the UCC of any other applicable jurisdiction;
(ii) The conveyance provided for in Section 2.1 shall be deemed to be a grant
by the Seller to the Buyer of a security interest in all of its right (including the power
to convey title thereto), title and interest, whether now owned or hereafter acquired, in
and to the Transaction SUBI, the Transaction SUBI Certificate and the Seller’s rights under
the SUBI Sale Agreement, to secure the performance of the obligations of the Seller
hereunder;
(iii) The possession by the Buyer or its agent of the Transaction SUBI Certificate
shall be deemed to be “possession by the secured party” or possession by the purchaser or a
Person designated by such purchaser, for purposes of perfecting the security interest
pursuant to the New York UCC and the UCC of any other applicable jurisdiction; and
(iv) Notifications to persons holding such property, and acknowledgments, receipts or
confirmations from persons holding such property, shall be deemed to be notifications to, or
acknowledgments, receipts or confirmations from, bailees or agents (as applicable) of the
Buyer for the purpose of perfecting such security interest under applicable law.
SECTION 3.2 Specific Performance. Either party may enforce specific performance of
this Agreement.
SECTION 3.3 Notices, Etc. All demands, notices and communications hereunder shall be
in writing and shall be delivered or mailed by registered or certified first class United States
mail, postage prepaid, hand delivery, prepaid courier service, or by telecopier, and addressed in
each case as set forth in Schedule II to the Indenture or at such other address as shall be
designated in a written notice to the other parties hereto. Delivery shall occur only upon receipt
or reported tender of such communication by an officer of the recipient entitled to receive such
notices located at the address of such recipient for notices hereunder.
SECTION 3.4 Choice of Law. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW
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YORK AND THE OBLIGATIONS, RIGHTS AND REMEDIES OF THE PARTIES HEREUNDER SHALL BE DETERMINED IN
ACCORDANCE WITH SUCH LAWS, WITHOUT GIVING EFFECT TO PRINCIPLES OF CONFLICTS OF LAW (OTHER THAN
SECTIONS 5-1401 AND 5-1402 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).
SECTION 3.5 Counterparts. This Agreement may be executed in any number of
counterparts, each of which so executed shall be deemed to be an original, but all of such
counterparts shall together constitute but one and the same instrument.
SECTION 3.6 Amendment.
(a) Any term or provision of this Agreement may be amended by the Seller without the consent
of the Indenture Trustee, any Noteholder, the Buyer or any other Person subject to satisfaction of
one of the following conditions: (i) the Seller or the Servicer delivers an Officer’s Certificate
or an Opinion of Counsel to the Indenture Trustee to the effect that such amendment will not
materially and adversely affect the interests of the Noteholders or (ii) the Rating Agency
Condition is satisfied with respect to such amendment. Without limiting the foregoing and subject
to clause (b) below, any term or provision of this Agreement may be amended by the Seller
with the consent of Noteholders evidencing not less than a majority of the Outstanding Note Amount,
voting as a single class. Notwithstanding the foregoing, any amendment that materially and
adversely affects the interests of the Certificateholders, the Indenture Trustee or the Buyer shall
require the prior written consent of the Persons whose interests are materially and adversely
affected. The consent of the Certificateholders or the Buyer shall be deemed to have been given if
the Servicer does not receive a written objection from such Person within 10 Business Days after a
written request for such consent shall have been given.
(b) Notwithstanding anything herein to the contrary (including clause (c) below), no amendment
shall (i) reduce the interest rate or principal amount of any Note, or delay the Final Scheduled
Payment Date of any Note without the consent of the Holder of such Note, or (ii) reduce the
percentage of the Outstanding Note Amount, the Holders of which are required to consent to any
matter without the consent of the Holders of at least the percentage of the Outstanding Note Amount
which were required to consent to such matter before giving effect to such amendment.
(c) It shall not be necessary for the consent of any Person pursuant to this Section for such
Person to approve the particular form of any proposed amendment, but it shall be sufficient if such
Person consents to the substance thereof.
(d) Prior to the execution of any amendment to this Agreement, the Seller shall provide each
Rating Agency with written notice of the substance of such amendment. No later than 10 Business
Days after the execution of any amendment to this Agreement, the Seller shall furnish a copy of
such amendment to each Rating Agency, the Issuer, the Owner Trustee, and the Indenture Trustee.
(e) Prior to the execution of any amendment to this Agreement, the Owner Trustee and the
Indenture Trustee shall be entitled to receive and conclusively rely upon an Opinion of
SUBI Transfer Agreement (2010-A)
7
Counsel stating that the execution of such amendment is authorized or permitted by this
Agreement and that all conditions precedent to the execution and delivery of such amendment have
been satisfied.
SECTION 3.7 Waivers. No failure or delay on the part of the Buyer, the Servicer, the
Seller or the Indenture Trustee in exercising any power or right hereunder (to the extent such
Person has any power or right hereunder) shall operate as a waiver thereof, nor shall any single or
partial exercise of any such power or right preclude any other or further exercise thereof or the
exercise of any other power or right. No notice to or demand on the Buyer or the Seller in any
case shall entitle it to any notice or demand in similar or other circumstances. No waiver or
approval by either party under this Agreement shall, except as may otherwise be stated in such
waiver or approval, be applicable to subsequent transactions. No waiver or approval under this
Agreement shall require any similar or dissimilar waiver or approval thereafter to be granted
hereunder.
SECTION 3.8 Entire Agreement. The Transaction Documents contain a final and complete
integration of all prior expressions by the parties hereto with respect to the subject matter
thereof and shall constitute the entire agreement among the parties hereto with respect to the
subject matter thereof, superseding all prior oral or written understandings. There are no
unwritten agreements among the parties.
SECTION 3.9 Severability of Provisions. If any one or more of the covenants,
agreements, provisions or terms of this Agreement shall be for any reason whatsoever held invalid,
then such covenants, agreements, provisions or terms shall be deemed severable from the remaining
covenants, agreements, provisions or terms of this Agreement and shall in no way affect the
validity or enforceability of the other provisions of this Agreement.
SECTION 3.10 Binding Effect; Assignability. This Agreement shall be binding upon and
inure to the benefit of the Buyer and the Seller and their respective successors and permitted
assigns. The Seller may not assign any of its rights hereunder or any interest herein without the
prior written consent of the Buyer, except as provided in Section 3.11 or as otherwise
herein specifically provided. 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 such time as the parties hereto shall agree.
SECTION 3.11 Acknowledgment and Agreement. By execution below, the Seller expressly
acknowledges and consents to the pledge of the Transaction SUBI Certificate and the Transaction
SUBI and the assignment of all rights and obligations of the Seller related thereto by the Buyer to
the Indenture Trustee pursuant to the Indenture for the benefit of the Noteholders. In addition,
the Seller hereby acknowledges and agrees that for so long as the Notes are outstanding, the
Indenture Trustee will have the right to exercise all powers, privileges and claims of the Buyer
under this Agreement.
SECTION 3.12 Cumulative Remedies. The remedies herein provided are cumulative and not
exclusive of any remedies provided by law.
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SECTION 3.13 Non-petition Covenant. With respect to each Bankruptcy Remote Party,
each party hereto agrees that, prior to the date which is one year and one day after payment in
full of all obligations under each Financing (i) no party hereto shall authorize such Bankruptcy
Remote Party to commence a voluntary winding-up or other voluntary case or other Proceeding seeking
liquidation, reorganization or other relief with respect to such Bankruptcy Remote Party or its
debts under any bankruptcy, insolvency or other similar law now or hereafter in effect in any
jurisdiction or seeking the appointment of an administrator, a trustee, receiver, liquidator,
custodian or other similar official with respect to such Bankruptcy Remote Party or any substantial
part of its property or to consent to any such relief or to the appointment of or taking possession
by any such official in an involuntary case or other Proceeding commenced against such Bankruptcy
Remote Party, or to make a general assignment for the benefit of any party hereto or any other
creditor of such Bankruptcy Remote Party, and (ii) none of the parties hereto shall commence or
join with any other Person in commencing any Proceeding against such Bankruptcy Remote Party under
any bankruptcy, reorganization, liquidation or insolvency law or statute now or hereafter in effect
in any jurisdiction. Each of the parties hereto agrees that, prior to the date which is one year
and one day after the payment in full of all obligations under each Financing, it will not
institute against, or join any other Person in instituting against, any Bankruptcy Remote Party an
action in bankruptcy, reorganization, arrangement, insolvency or liquidation Proceedings or similar
Proceeding under the laws of the United States or any State of the United States.
SECTION 3.14 Each SUBI Separate; Assignees of SUBI. Each party hereto acknowledges
and agrees (and each holder or pledgee of the Transaction SUBI, by virtue of its acceptance of such
Transaction SUBI or pledge thereof, acknowledges and agrees) that (a) the Transaction SUBI is a
separate series of the Origination Trust as provided in Section 3806(b)(2) of Chapter 38 of Title
12 of the Delaware Code, 12 Del. Code § 3801 et seq., (b)(i) the debts,
liabilities, obligations and expenses incurred, contracted for or otherwise existing with respect
to the Transaction SUBI or the Transaction SUBI Portfolio shall be enforceable against the
Transaction SUBI Portfolio only and not against any Transaction SUBI Assets or the UTI Portfolio
and (ii) the debts, liabilities, obligations and expenses incurred, contracted for or otherwise
existing with respect to any Other SUBI, any Other SUBI Portfolio, the UTI or the UTI Portfolio
shall be enforceable against such Other SUBI Portfolio or the UTI Portfolio only, as applicable,
and not against the Transaction SUBI or any Other SUBI Assets, (c) except to the extent required by
law, UTI Assets or SUBI Assets with respect to any SUBI (other than the Transaction SUBI) shall not
be subject to the claims, debts, liabilities, expenses or obligations arising from or with respect
to the Transaction SUBI in respect of such claim, (d)(i) no creditor or holder of a claim relating
to the Transaction SUBI or the Transaction SUBI Portfolio shall be entitled to maintain any action
against or recover any assets allocated to the UTI or the UTI Portfolio or any Other SUBI or the
assets allocated thereto, and (ii) no creditor or holder of a claim relating to the UTI, the UTI
Portfolio or any SUBI other than the Transaction SUBI or any SUBI Assets other than the Transaction
SUBI Portfolio shall be entitled to maintain any action against or recover any assets allocated to
the Transaction SUBI, and (e) any purchaser, assignee or pledgee of an interest in the Transaction
SUBI or the Transaction SUBI Certificate must, prior to or contemporaneously with the grant of any
such assignment, pledge or security interest, (i) give to the Origination Trust a non-petition
covenant substantially similar to that set forth in Section 6.9 of the Origination Trust
Agreement, and (ii) execute an agreement for the benefit of each holder, assignee or pledgee from
time to time of the UTI or UTI Certificate and any Other
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9
SUBI or Other SUBI Certificate, to release all claims to the assets of the Origination Trust
allocated to the UTI Portfolio and each Other SUBI Portfolio and in the event that such release is
not given effect, to fully subordinate all claims it may be deemed to have against the assets of
the Origination Trust allocated to the UTI Portfolio and each Other SUBI Portfolio.
SECTION 3.15 Submission to Jurisdiction; Waiver of Jury Trial. Each of the parties
hereto hereby irrevocably and unconditionally:
(a) submits for itself and its property in any legal action or Proceeding relating to this
Agreement or any documents executed and delivered in connection herewith, or for recognition and
enforcement of any judgment in respect thereof, to the nonexclusive general jurisdiction of the
courts of the State of New York, the courts of the United States of America for the Southern
District of New York and appellate courts from any thereof;
(b) consents that any such action or Proceeding may be brought in such courts and waives any
objection that it may now or hereafter have to the venue of such action or Proceeding in any such
court or that such action or Proceeding was brought in an inconvenient court and agrees not to
plead or claim the same;
(c) agrees that service of process in any such action or Proceeding may be effected by mailing
a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to such Person at its address determined in accordance with Section 3.3 of this
Agreement;
(d) agrees that nothing herein shall affect the right to effect service of process in any
other manner permitted by law or shall limit the right to xxx in any other jurisdiction; and
(e) to the extent permitted by applicable law, waives all right of trial by jury in any
action, Proceeding or counterclaim based on, or arising out of, under or in connection with this
Agreement, any other Transaction Document, or any matter arising hereunder or thereunder.
SECTION 3.16 Limitation of Liability of Owner Trustee. Notwithstanding anything
contained herein to the contrary, this instrument has been signed by Citibank, N.A. not in its
individual capacity but solely in its capacity as Owner Trustee of the Buyer and in no event shall
Citibank, N.A. in its individual capacity or any beneficial owner of the Buyer have any liability
for the representations, warranties, covenants, agreements or other obligations of the Buyer
hereunder, as to all of which recourse shall be had solely to the assets of the Buyer.
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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year
first written above.
| VOLKSWAGEN AUTO LEASE/LOAN UNDERWRITTEN FUNDING, LLC |
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| By: | /s/ Xxxxxx Xxxxxxx | |||
| Name: | Xxxxxx Xxxxxxx | |||
| Title: | Treasurer | |||
| By: | /s/ Xxxxxxxx X. Xxxxx | |||
| Name: | Xxxxxxxx X. Xxxxx | |||
| Title: | Assistant Treasurer | |||
SUBI Transfer Agreement (2010-A)
S-1
| VOLKSWAGEN AUTO LEASE TRUST 2010-A |
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| By: | Citibank, N.A., not in its individual capacity but solely as owner trustee |
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| By: | /s/ Xxxxx Xxxxxxxxxx | |||
| Name: | Xxxxx Xxxxxxxxxx | |||
| Title: | Vice President | |||
SUBI Transfer Agreement (2010-A)
S-2
SCHEDULE I
PERFECTION REPRESENTATIONS, WARRANTIES AND COVENANTS
In addition to the representations, warranties and covenants contained in the SUBI Transfer
Agreement, the Seller hereby represents, warrants, and covenants to the Buyer as follows on the
Closing Date:
1. The SUBI Transfer Agreement creates a valid and continuing security interest (as defined in the
applicable UCC) in the Transaction SUBI Certificate in favor of the Buyer, which security interest
is prior to all other Adverse Claims and is enforceable as such as against creditors of and
purchasers from the Seller.
2. The Transaction SUBI Certificate constitutes a “general intangible,” “instrument,” “certificated
security,” or “tangible chattel paper,” within the meaning of the applicable UCC.
3. The Seller owns and has good and marketable title to the Transaction SUBI Certificate free and
clear of any Adverse Claim, claim or encumbrance of any Person, excepting only liens for taxes,
assessments or similar governmental charges or levies incurred in the ordinary course of business
that are not yet due and payable or as to which any applicable grace period shall not have expired,
or that are being contested in good faith by proper proceedings and for which adequate reserves
have been established, but only so long as foreclosure with respect to such a lien is not imminent
and the use and value of the property to which the Adverse Claim attaches is not impaired during
the pendency of such proceeding.
4. The Seller has received all consents and approvals to the sale of the Transaction SUBI
Certificate hereunder to the Buyer required by the terms of the Transaction SUBI Certificate to the
extent that it constitutes an instrument or a payment intangible.
5. The Seller has received all consents and approvals required by the terms of the Transaction SUBI
Certificate, to the extent that it constitutes a securities entitlement, certificated security or
uncertificated security, to the transfer to the Buyer of its interest and rights in the Transaction
SUBI Certificate hereunder.
6. The Seller has caused or will have caused, within ten days after the effective date of the SUBI
Transfer Agreement, the filing of all appropriate financing statements in the proper filing office
in the appropriate jurisdictions under applicable law in order to perfect the sale of the
Transaction SUBI Certificate from the Seller to the Buyer and the security interest in the
Transaction SUBI Certificate granted to the Buyer hereunder.
7. To the extent that the Transaction SUBI Certificate constitutes an instrument or tangible
chattel paper, all original executed copies of each such instrument or tangible chattel paper have
been delivered to the Buyer.
8. Other than the transfer of the Transaction SUBI Certificate from VCI to the Seller under the
SUBI Sale Agreement and from the Seller to the Buyer under the SUBI Transfer Agreement and the
security interest granted to the Indenture Trustee pursuant to the Indenture, the Seller has not
pledged, assigned, sold, granted a security interest in, or otherwise conveyed the Transaction
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SUBI Certificate. The Seller has not authorized the filing of, nor is aware of, any financing
statements against the Seller that include a description of collateral covering the Transaction
SUBI Certificate other than any financing statement relating to any security interest granted
pursuant to the Transaction Documents or that has been terminated.
9. No instrument or tangible chattel paper that constitutes or evidences the Transaction SUBI
Certificate has any marks or notations indicating that it has been pledged, assigned or otherwise
conveyed to any Person other than the Indenture Trustee.
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