ADMINISTRATION AGREEMENT among FORD CREDIT AUTO LEASE TRUST 2011-A, as Issuer, FORD MOTOR CREDIT COMPANY LLC, as Indenture Administrator and THE BANK OF NEW YORK MELLON, as Indenture Trustee Dated as of June 1, 2011
Exhibit 99.1
EXECUTION VERSION
among
FORD CREDIT AUTO LEASE TRUST 2011-A,
as Issuer,
as Issuer,
FORD MOTOR CREDIT COMPANY LLC,
as Indenture Administrator
as Indenture Administrator
and
THE BANK OF NEW YORK MELLON,
as Indenture Trustee
as Indenture Trustee
Dated as of June 1, 2011
TABLE OF CONTENTS
ARTICLE I USAGE AND DEFINITIONS |
1 | |||
Section 1.1. Usage and Definitions |
1 | |||
ARTICLE II ENGAGEMENT OF INDENTURE ADMINISTRATOR |
1 | |||
Section 2.1. Engagement |
1 | |||
Section 2.2. Compensation |
1 | |||
ARTICLE III DUTIES OF INDENTURE ADMINISTRATOR |
2 | |||
Section 3.1. Duties of the Indenture Administrator with respect to the DTC Letter |
2 | |||
Section 3.2. Duties of the Indenture Administrator with respect to the Indenture |
2 | |||
Section 3.3. Additional Duties |
5 | |||
Section 3.4. Audits of the Indenture Administrator |
6 | |||
Section 3.5. Additional Information to Be Furnished to the Issuer |
7 | |||
Section 3.6. Updating List of Responsible Persons |
7 | |||
Section 3.7. Prohibition on Certain Actions |
7 | |||
ARTICLE IV INDEMNIFICATION |
7 | |||
Section 4.1. Indemnification |
7 | |||
ARTICLE V RESIGNATION AND REMOVAL OF THE INDENTURE ADMINISTRATOR; TERM OF AGREEMENT |
8 | |||
Section 5.1. Resignation and Removal of Indenture Administrator |
8 | |||
Section 5.2. Appointment of Successor Indenture Administrator |
9 | |||
Section 5.3. Action upon Termination, Resignation or Removal |
9 | |||
Section 5.4. Term of Agreement |
9 | |||
ARTICLE VI MISCELLANEOUS |
9 | |||
Section 6.1. Independence of the Indenture Administrator |
9 | |||
Section 6.2. Transactions with Affiliates; Other Transactions |
10 | |||
Section 6.3. Amendments |
10 | |||
Section 6.4. Notices |
10 | |||
Section 6.5. Assignment |
11 | |||
Section 6.6. Third-Party Beneficiary |
11 | |||
Section 6.7. GOVERNING LAW |
11 | |||
Section 6.8. Submission to Jurisdiction |
11 | |||
Section 6.9. WAIVER OF JURY TRIAL |
11 | |||
Section 6.10. Severability |
11 | |||
Section 6.11. Counterparts |
11 | |||
Section 6.12. Headings |
12 | |||
Section 6.13. No Petition |
12 | |||
Section 6.14. Not Applicable to Ford Credit in Other Capacities |
12 | |||
Section 6.15. Limitation of Liability of Owner Trustee and Indenture Trustee |
12 |
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ADMINISTRATION AGREEMENT, dated as of June 1, 2011 (this “Agreement”), among FORD
CREDIT AUTO LEASE TRUST 2011-A, a Delaware statutory trust, as Issuer, FORD MOTOR CREDIT COMPANY
LLC, a Delaware limited liability company, as Indenture Administrator, and THE BANK OF NEW YORK
MELLON, a New York banking corporation, not in its individual capacity but solely as Indenture
Trustee.
BACKGROUND
The Issuer was formed pursuant to the Trust Agreement and is issuing the Notes pursuant to the
Indenture.
The Issuer has entered into certain agreements in connection with the issuance of the Notes,
including the DTC Letter and the Indenture.
The Issuer and the Owner Trustee desire to have the Indenture Administrator perform certain
duties of the Issuer and the Owner Trustee under the 2011-A Basic Documents on the terms set forth
in this Agreement.
ARTICLE I
USAGE AND DEFINITIONS
USAGE AND DEFINITIONS
Section 1.1. Usage and Definitions. Capitalized terms used but not otherwise defined
in this Agreement are defined in Appendix 1 to the Exchange Note Supplement (the “Exchange Note
Supplement”) to the Credit and Security Agreement (as defined below), dated as of June 1, 2011,
among CAB East LLC (“CAB East”), as a Borrower, CAB West LLC (“CAB West”), as a
Borrower, and FCALM, LLC (“FCALM” and, together with CAB East and CAB West, the
“Titling Companies”), as a Borrower, U.S. Bank National Association (“U.S. Bank”),
as Administrative Agent, HTD Leasing LLC (“HTD”), as Collateral Agent, and Ford Motor
Credit Company LLC (“Ford Credit”), as Lender and Servicer. Capitalized terms used but not
otherwise defined in this Agreement or in Appendix 1 to the Exchange Note Supplement are defined in
Appendix A to the Amended and Restated Credit and Security Agreement (the “Credit and Security
Agreement”), dated as of December 1, 2006, among the Titling Companies, as Borrowers, U.S.
Bank, as Administrative Agent, HTD, as Collateral Agent and Ford Credit, as Lender and Servicer.
Appendix 1 and Appendix A also contain rules as to usage applicable to this Agreement and are
incorporated by reference into this Agreement.
ARTICLE II
ENGAGEMENT OF INDENTURE ADMINISTRATOR
ENGAGEMENT OF INDENTURE ADMINISTRATOR
Section 2.1. Engagement. The Issuer and the Owner Trustee engage the Indenture
Administrator to perform certain duties of the Issuer and the Owner Trustee under the 2011-A Basic
Documents on the terms set forth in this Agreement and the Indenture Administrator accepts such
engagement.
Section 2.2. Compensation. As compensation for the performance of the Indenture Administrator’s obligations under this
Agreement and as reimbursement for its expenses related to its obligations under this Agreement,
the Depositor will pay the Indenture Administrator a fee in an amount agreed upon by the Depositor
and the Indenture Administrator.
ARTICLE III
DUTIES OF INDENTURE ADMINISTRATOR
DUTIES OF INDENTURE ADMINISTRATOR
Section 3.1. Duties of the Indenture Administrator with respect to the DTC Letter.
The Indenture Administrator agrees to perform all its duties as Indenture Administrator and the
duties of the Issuer under the DTC Letter. The Indenture Administrator will monitor the
performance of the Issuer and will advise the Owner Trustee when action is necessary to comply with
the Issuer’s duties under the DTC Letter. The Indenture Administrator will prepare, or cause to be
prepared, for execution by the Issuer, or execute as Indenture Administrator on behalf of the
Issuer, all documents, reports, filings, instruments, certificates and opinions that are the duty
of the Issuer to prepare, file or deliver pursuant to the DTC Letter.
Section 3.2. Duties of the Indenture Administrator with respect to the Indenture. The
Indenture Administrator will consult with the Owner Trustee regarding the duties of the Issuer
under the Indenture. The Indenture Administrator will monitor the performance of the Issuer and
will advise the Owner Trustee when action is necessary to comply with the Issuer’s duties under the
Indenture. The Indenture Administrator will prepare, or cause to be prepared, for execution by the
Issuer, or execute as Indenture Administrator on behalf of the Issuer, all documents, reports,
filings, instruments, certificates, notices and opinions that are the duty of the Issuer to
prepare, file or deliver pursuant to the Indenture. In furtherance of the foregoing, the Indenture
Administrator will take all action that is the duty of the Issuer or the Owner Trustee to take
pursuant to the Indenture including (references are to sections of the Indenture):
(a) preparing or obtaining the documents and instruments required for authentication of the
Notes and delivering such documents and instruments to the Indenture Trustee (Section 2.2);
(b) causing the Note Register to be kept and giving the Indenture Trustee notice of any
appointment of a new Note Registrar (Section 2.4(a));
(c) determining whether the requirements of UCC Section 8-401(a) are met (Section 2.4(b) and
(c));
(d) determining whether the requirements of UCC Section 8-405 are met (Section 2.5) and
preparing an Issuer Request requesting the Indenture Trustee to authenticate and deliver
replacement Notes in lieu of mutilated, destroyed, lost or stolen Notes (Section 2.5);
(e) causing the Indenture Trustee to notify the Noteholders of the final principal payment on
their Notes (Section 2.7(b));
(f) causing the Indenture Trustee to release property from the Lien of the Indenture (Section
2.9);
(g) preparing Definitive Notes in accordance with the instructions of the Clearing Agency
(Section 2.11);
(h) determining whether any Noteholder is a Non-Permitted Noteholder and causing such
Non-Permitted Noteholder to sell its interest in the Notes or, if necessary, taking all
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reasonable
steps available to redeem or sell such Non-Permitted Noteholder’s Notes (Section 2.14);
(i) ensuring that the Indenture Trustee maintains an office or agency in the Borough of
Manhattan, The City of New York, for registration of transfer or exchange of Notes (Section 3.2);
(j) directing the Indenture Trustee to deposit monies with any Note Paying Agents other than
the Indenture Trustee (Section 3.3);
(k) causing any newly appointed Note Paying Agents to deliver to the Indenture Trustee the
instrument specified in the Indenture regarding funds held in trust (Section 3.3(b));
(l) directing any Note Paying Agent to pay to the Indenture Trustee all sums to be held by the
Indenture Trustee (Section 3.3(c));
(m) obtaining and preserving the Issuer’s qualification to do business in each jurisdiction in
which such qualification is or will be necessary to protect the validity and enforceability of the
Indenture, the Notes and the 2011-A Collateral (Section 3.4);
(n) preparing all supplements and amendments to the Indenture and all financing statements,
continuation statements, instruments of further assurance and other instruments as may be required
in connection with such supplement or amendment and taking such other action as is necessary or
advisable to protect the 2011-A Collateral (Section 3.5);
(o) notifying the Indenture Trustee in an Officer’s Certificate of any Person with whom the
Issuer has contracted to perform its duties under the Indenture (Section 3.6(b));
(p) notifying the Indenture Trustee and the Rating Agencies of a Facility Servicer Event of
Default or Exchange Note Servicer Event of Default under the Servicing Agreement and, if an
Exchange Note Servicer Event of Default arises from the failure of the Servicer to perform any of
its duties and obligations under the Servicing Agreement with respect to the 2011-A Collateral,
taking all reasonable steps available to cause the Servicer to remedy such failure (Section
3.6(d));
(q) notifying the Indenture Trustee of the termination or resignation of the Servicer and
appointment of a successor Servicer under the Servicing Agreement (Section 3.6(e));
(r) effecting the recording of the Indenture, if applicable, and obtaining an Opinion of
Counsel (Section 3.8(a));
(s) delivering the Opinion of Counsel on the 2011-A Closing Date, the annual Opinions of
Counsel as to the 2011-A Collateral, the annual Officer’s Certificate and certain other statements
as to compliance with the Indenture (Sections 3.8 and 3.9);
(t) preparing and obtaining the documents and instruments required for the consolidation or
merger of the Issuer with or into any other Person or the conveyance or transfer by the Issuer of
any of its properties or assets to any other Person (Section 3.10);
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(u) notifying the Indenture Trustee and the Rating Agencies of each Event of Default under the
Indenture (Section 3.15);
(v) monitoring the Issuer’s obligations as to the satisfaction and discharge of the Indenture,
preparing an Officer’s Certificate and obtaining the required Opinions of Counsel (Section 4.1);
(w) notifying the Indenture Trustee (with a copy of such notice to any Qualified Institution
or Qualified Trust Institution (if not the Indenture Trustee) maintaining any Bank Accounts) of the
occurrence of an event set forth in Section 5.1(a)(iii) of the Indenture, which with the giving of
notice and the lapse of time would become an Event of Default, describing such Default, the status
of such Default and what action the Indenture Administrator is taking or proposes to take with
respect to such Default (Section 5.1);
(x) complying with any written directive of the Indenture Trustee with respect to the sale of
the 2011-A Collateral at one or more public or private sales called and conducted in any manner
permitted by law if an Event of Default has occurred and is continuing (Section 5.6);
(y) causing the Servicer to comply with its duties and obligations under the Servicing
Agreement (Section 5.17);
(z) removing the Indenture Trustee upon the occurrence of one of the events specified in
Section 6.8(b) of the Indenture and appointing a successor Indenture Trustee upon the resignation
or removal of the Indenture Trustee (Section 6.8);
(aa) notifying the Rating Agencies of the events specified in Section 6.9(a) of the Indenture
(Section 6.9);
(bb) preparing any written instruments required to confirm the authority of any co-trustee or
separate trustee and any written instruments necessary in connection with the resignation or
removal of any co-trustee or separate trustee (Section 6.10);
(cc) inspecting the Indenture Trustee’s books and records (Section 6.13);
(dd) furnishing the Indenture Trustee with the names and addresses of Noteholders during any
period when the Indenture Trustee is not the Note Registrar (Section 7.1);
(ee) preparing, obtaining and filing the instruments, opinions, certificates and other
documents required for the release of property from the Lien of the Indenture (Sections 8.4 and
10.1);
(ff) preparing Issuer Orders and Officer’s Certificates, providing prior notice to the Rating
Agencies, obtaining Opinions of Counsel, Rating Agency Confirmations and the necessary consents
with respect to the execution of supplemental indentures and preparing such supplemental indentures
and notices with respect to the execution of such supplemental indentures (Sections 9.1 and 9.2);
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(gg) causing the execution of, and after execution by the Issuer, the delivery of new Notes
conforming to any supplemental indenture (Section 9.6);
(hh) causing the Indenture Trustee to notify the Noteholders of the redemption of the Notes
(Section 10.1);
(ii) preparing all Officer’s Certificates and obtaining Opinions of Counsel and Independent
Certificates with respect to any requests by the Issuer to the Indenture Trustee to take any action
under the Indenture (Section 11.1(a));
(jj) preparing Officer’s Certificates for the release of property from the Lien of the
Indenture (Section 11.1(c));
(kk) preparing and, after execution by the Issuer, filing with the Securities and Exchange
Commission and delivering to the Indenture Trustee documents and reports required to be filed with
the Securities and Exchange Commission and any additional information, documents and reports (or
summaries) with respect to compliance by the Issuer with the conditions and covenants of the
Indenture required to be filed with the Securities and Exchange Commission under rules and
regulations prescribed by the Securities and Exchange Commission (Section 7.3); and
(ll) notifying the Indenture Trustee of the listing of the Notes on any stock exchange
(Section 7.4(b)).
Section 3.3. Additional Duties.
(a) In addition to the duties of the Indenture Administrator set forth in Sections 3.1 and
3.2, the Indenture Administrator will perform calculations and will prepare, file and deliver on
behalf of the Issuer or the Owner Trustee, all such documents that the Issuer or the Owner Trustee
is required to prepare, file or deliver pursuant to the Basic Documents, and at the request of the
Owner Trustee will take all appropriate action that the Issuer or the Owner Trustee is required to
take pursuant to the Basic Documents. Subject to Section 6.1 of this Agreement, the Indenture
Administrator will administer, perform or supervise the performance of such other activities in
connection with the 2011-A Collateral (including those under the Basic Documents) that are not
covered by any of the foregoing provisions and that are expressly requested by the Owner Trustee
and are reasonably within the capability of the Indenture Administrator, including:
(i) obtaining and maintaining, at its own expense, any licenses required to be obtained
or maintained by the Issuer under the laws of any State in connection with the Issuer’s
duties and obligations under the Basic Documents; and
(ii) notifying the Owner Trustee, on or before the 2011-A Closing Date and from time to
time thereafter, of any licenses required to be obtained or maintained by the Owner Trustee
under the laws of any State in connection with the duties and obligations of the Owner
Trustee under the Basic Documents.
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(b) The Indenture Administrator will be responsible for performing the duties of the Owner
Trustee set forth in Section 2.11 of the Trust Agreement, except that if the Owner Trustee is
notified by the Indenture Administrator that the Issuer is deemed to be taxable as a partnership
for U.S. federal income tax purposes, the Owner Trustee will retain responsibility for the
distribution to the Depositor and the holder of the Residual Interest such information as may be
required to enable the Depositor and any such holder to prepare its U.S. federal and State income
tax returns.
(c) The Indenture Administrator will be responsible for notifying the Owner Trustee if any
withholding tax is imposed on the Issuer’s payments (or allocations of income) to the holder of the
Residual Interest as contemplated by Section 4.1(c) of the Trust Agreement, the amount of any
withholding tax required to be withheld by the Owner Trustee pursuant to Section 4.1(c) of the
Trust Agreement and the procedures to be followed to comply with the requirements under the Code.
The Indenture Administrator will notify the Owner Trustee in each instance that any additional tax
withholding is subsequently required or any previously required tax withholding is no longer
required.
(d) The Indenture Administrator will perform the duties of the Indenture Administrator
specified in Sections 7.2, 7.3 and 9.2 of the Trust Agreement required to be performed in
connection with the resignation or removal of the Owner Trustee and any other duties required to be
performed by the Indenture Administrator pursuant to the Trust Agreement.
(e) Upon final distribution of any funds to the holder of the Residual Interest, the Indenture
Administrator will direct the Owner Trustee to cause the Certificate of Trust to be cancelled in
accordance with Section 8.1(c) of the Trust Agreement.
(f) The Indenture Administrator will instruct the Indenture Trustee as to how to apply the
proceeds of any liquidation or sale of the Collateral included in the 2011-A Reference Pool in
accordance with Section 4.2(b) of the Exchange Note Supplement.
(g) The Indenture Administrator will either prepare, execute and deliver, or will direct the
Servicer or the Depositor, as applicable, to prepare, execute and deliver, on behalf of the Issuer
all certificates and other documents required to be delivered by the Xxxxxxxx-Xxxxx Act of 2002.
Section 3.4. Audits of the Indenture Administrator. The Indenture Administrator will,
upon reasonable prior notice, permit any authorized representative of the Issuer, the Depositor,
the Owner Trustee or the Indenture Trustee, during
the Indenture Administrator’s normal business hours, to examine and audit the books of
account, records, reports and other documents and materials of the Indenture Administrator relating
to the performance of the Indenture Administrator’s obligations under this Agreement. In addition,
the Indenture Administrator will permit such representatives to make copies and extracts of any
such books and records and to discuss the same with the Indenture Administrator’s officers and
Independent certified public accountants, all at such reasonable times and as often as may
reasonably be requested. Each of the Issuer, the Depositor, the Owner Trustee or the Indenture
Trustee will, and will cause its authorized representatives to, hold in confidence all such
information except to the extent disclosure may be required by law (and all reasonable applications
for confidential treatment are
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unavailing) and except to the extent that such party, may reasonably
determine that such disclosure is consistent with its obligations under this Agreement.
Section 3.5. Additional Information to Be Furnished to the Issuer. The Indenture
Administrator will furnish to the Issuer such additional information regarding the 2011-A
Collateral as the Issuer may reasonably request.
Section 3.6. Updating List of Responsible Persons. The Indenture Administrator may
from time to time designate the individuals who are authorized to act as a “Responsible Person”
with respect to the Indenture Administrator pursuant to an Officer’s Certificate distributed to the
Owner Trustee, the Indenture Trustee, the Titling Companies, the Titling Company Administrator, the
Servicer, the Holding Companies and the Depositor.
Section 3.7. Prohibition on Certain Actions. Notwithstanding anything to the contrary
in this Agreement, the Indenture Administrator will not (a) make any payments to the Noteholders
under the Basic Documents, (b) sell the 2011-A Collateral pursuant to Section 5.6 of the Indenture
or (c) take any other action that the Owner Trustee or the Indenture Trustee directs the Indenture
Administrator not to take on its behalf.
ARTICLE IV
INDEMNIFICATION
INDEMNIFICATION
Section 4.1. Indemnification.
(a) The Depositor and the Indenture Administrator will, jointly and severally, indemnify,
defend and hold harmless the Indenture Trustee (in each of its capacities under the 2011-A Basic
Documents, including as Financial Institution) and its officers, directors, employees and agents,
from and against any and all costs, expenses, losses, damages, claims and liabilities (including
the reasonable compensation, expenses and disbursements of the Indenture Trustee’s agents, counsel,
accountants and experts) incurred by it in connection with the administration of and the
performance of its duties under the Indenture, including the costs and
expenses of defending itself against any loss, damage, claim or liability incurred by it in
connection with the exercise or performance of any of its powers or duties under the Indenture and
the other Basic Documents, but excluding any cost, expense, loss, damage, claim or liability (i)
incurred by the Indenture Trustee through the Indenture Trustee’s willful misconduct, bad faith or
negligence (except for errors in judgment) or (ii) arising from the Indenture Trustee’s breach of
any of its representations or warranties set forth in the Indenture.
(b) The Depositor and the Indenture Administrator will, jointly and severally, indemnify,
defend and hold harmless the Owner Trustee and its officers, directors, employees and agents, from
and against any and all costs, expenses, losses, damages, claims and liabilities (including the
reasonable compensation, expenses and disbursements of the Owner Trustee’s agents, counsel,
accountants and experts) incurred by it in connection with the administration of and the
performance of its duties under the Trust Agreement, including the costs and expenses of defending
itself against any loss, damage, claim or liability incurred by it in connection with the exercise
or performance of any of its powers or duties under the Indenture, but excluding any cost, expense,
loss, damage, claim or liability (i) incurred by the Owner Trustee through the
7
Owner Trustee’s own
willful misconduct, bad faith or negligence (except for errors in judgment) or (ii) arising from
the Owner Trustee’s breach of any of its representations or warranties set forth in the Trust
Agreement.
(c) Promptly upon receipt by any Indemnified Person of notice of the commencement of any
Proceeding against any such Indemnified Person, such Indemnified Person will, if a claim in respect
of such Proceeding is to be made against the Depositor or the Indenture Administrator under Section
4.1(a) or (b), notify the Depositor and the Indenture Administrator of the commencement of such
Proceeding. The Depositor or the Indenture Administrator may participate in and assume the defense
and settlement of any such Proceeding at its expense, and no settlement of such Proceeding may be
made without the approval of the Depositor or the Indenture Administrator and such Indemnified
Person, which approvals will not be unreasonably withheld, delayed or conditioned. After notice
from the Depositor or the Indenture Administrator to the Indemnified Person of the Depositor’s or
the Indenture Administrator’s intention to assume the defense of such Proceeding with counsel
reasonably satisfactory to the Indemnified Person, and so long as the Depositor or the Indenture
Administrator so assumes the defense of such Proceeding in a manner reasonably satisfactory to the
Indemnified Person, as applicable, the Depositor or the Indenture Administrator will not be liable
for any legal expenses of counsel to the Indemnified Person unless there is a conflict between the
interests of the Depositor or the Indenture Administrator and an Indemnified Person, in which case
the Depositor or the Indenture Administrator will pay for the separate counsel to the Indemnified
Person which is reasonably satisfactory to the Indenture Administrator. The obligations of the
Indenture Administrator under this Article IV will survive the termination of this Agreement.
ARTICLE V
RESIGNATION AND REMOVAL OF THE INDENTURE ADMINISTRATOR;
TERM OF AGREEMENT
RESIGNATION AND REMOVAL OF THE INDENTURE ADMINISTRATOR;
TERM OF AGREEMENT
Section 5.1. Resignation and Removal of Indenture Administrator.
(a) Subject to Section 5.2(a), the Indenture Administrator may resign its duties under this
Agreement by providing the Issuer, the Owner Trustee and the Indenture Trustee with at least 60
days’ prior notice.
(b) Subject to Section 5.2(a), if any of the following events occurs and is continuing, the
Owner Trustee, with the consent of Noteholders of Notes evidencing not less than a majority of the
Note Balance of the Controlling Class (or if no Notes are outstanding, the holder of the Residual
Interest), by notice to the Indenture Administrator may terminate all of the rights and obligations
of the Indenture Administrator under this Agreement:
(i) the Indenture Administrator defaults in the performance of any of its duties under
this Agreement and, after notice of such default by the Issuer, the Indenture Trustee or the
Owner Trustee, does not cure such default within 15 days (or, if such default cannot be
cured in such time, does not give within 15 days such assurance of cure as is reasonably
satisfactory to the Issuer); or
(ii) an Insolvency Event occurs with respect to the Indenture Administrator.
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(c) The Indenture Administrator will notify the Issuer and the Indenture Trustee within five
Business Days after the occurrence of an Insolvency Event with respect to the Indenture
Administrator.
Section 5.2. Appointment of Successor Indenture Administrator.
(a) No resignation or removal of the Indenture Administrator pursuant to Section 5.1(a) or (b)
will be effective until (i) a successor Indenture Administrator has been appointed by the Issuer at
the direction of Noteholders of a majority of the Note Balance of the Controlling Class, or if no
Notes are outstanding, by the holder of the Residual Interest, (ii) such successor Indenture
Administrator has executed, acknowledged and delivered to the Issuer and to its predecessor
Indenture Administrator an instrument accepting its appointment under this Agreement, and (iii)
Rating Agency Confirmation has been obtained with respect to the proposed appointment. The Issuer
will notify the Indenture Trustee of any such resignation or removal.
(b) Upon the appointment of a successor Servicer pursuant to the Servicing Agreement, the
Indenture Administrator will immediately resign and such successor Servicer will automatically
become the Indenture Administrator under this Agreement.
Section 5.3. Action upon Termination, Resignation or Removal. Promptly upon the
effective date of termination of this Agreement pursuant to Section 5.4 or the resignation or
removal of the Indenture Administrator pursuant to Sections 5.1 or 5.2(b), the Indenture
Administrator will be entitled to be paid all fees and reimbursable expenses accruing to it through
the date of such termination, resignation or removal. If this Agreement is terminated pursuant to
Section 5.4, the Indenture Administrator will promptly deliver to the Issuer all property and
documents relating to the 2011-A Collateral then in the custody of the Indenture Administrator. If
the Indenture Administrator resigns or is removed pursuant to
Sections 5.1 or 5.2(b), the Indenture Administrator will cooperate with the Issuer and take
all reasonable steps requested to assist the Issuer in making an orderly transfer of the duties of
the Indenture Administrator to the successor Indenture Administrator.
Section 5.4. Term of Agreement. This Agreement will continue in force until the
termination of the Issuer in accordance with Section 8.1 of the Trust Agreement, upon which event
this Agreement will automatically terminate.
ARTICLE VI
MISCELLANEOUS
MISCELLANEOUS
Section 6.1. Independence of the Indenture Administrator. The Indenture Administrator
will be an independent contractor and will not be subject to the supervision of the Issuer or the
Owner Trustee with respect to the manner in which it accomplishes the performance of its
obligations under this Agreement. Unless expressly authorized by the Issuer, the Indenture
Administrator will have no authority to act for or represent the Issuer or the Owner Trustee in any
way and will not otherwise be deemed an agent of the Issuer or the Owner Trustee. Nothing
contained in this Agreement will constitute the Indenture Administrator and either of the Issuer or
the Owner Trustee as members of any partnership, joint venture or other separate entity or impose
any liability as such on any of them.
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Section 6.2. Transactions with Affiliates; Other Transactions. In carrying out any
of its obligations under this Agreement, the Indenture Administrator may enter into transactions or
otherwise deal with any of its Affiliates. Nothing in this Agreement will prevent the Indenture
Administrator or its Affiliates from engaging in other businesses or from acting in a similar
capacity as an administrator for any other person or entity even though such person or entity may
engage in business activities similar to those of the Issuer.
Section 6.3. Amendments. This Agreement may be amended by a written amendment
executed and delivered by the Issuer, the Indenture Administrator and the Indenture Trustee, with
the consent of the Owner Trustee, without the consent of the Noteholders, so long as the Issuer or
the Indenture Administrator delivers an Opinion of Counsel to the Indenture Trustee and the Owner
Trustee to the effect that such amendment will not materially adversely affect the interest of the
Noteholders. This Agreement also may be amended by the Issuer, the Indenture Administrator and the
Indenture Trustee with the consent of the Owner Trustee and the Noteholders of a majority of each
affected Class of Notes Outstanding (with each affected Class voting separately, except that all
Noteholders of Class A Notes will vote together as a single class); provided that no such
amendment may (a) increase or reduce in any manner the amount of, or accelerate or delay the timing
of, collections of payments on the 2011-A Collateral or distributions that are required to be made
for the benefit of the Noteholders or (b) reduce the percentage of the Noteholders required to
consent to any such amendment, without the consent of each Noteholder adversely affected..
Section 6.4. Notices.
(a) All notices, requests, demands, consents, waivers or other communications to or from the
parties to this Agreement must be in writing and will be deemed to have been given:
(i) upon delivery or, in the case of a letter mailed by registered first class mail,
postage prepaid, three days after deposit in the mail,
(ii) in the case of a fax, when receipt is confirmed by telephone, reply email or reply
fax from the recipient,
(iii) in the case of an email, when receipt is confirmed by telephone or reply email
from the recipient, and
(iv) in the case of an electronic posting to a password-protected website to which the
recipient has been provided access, upon delivery of an email to such recipient stating that
such electronic posting has occurred.
Any such notice, request, demand, consent or other communication must be delivered or
addressed as set forth on Schedule A to the Indenture or at such other address as any party may
designate by notice to the other parties.
(b) Any notice required or permitted to be mailed to a Noteholder must be sent by overnight
delivery, mailed by registered first class mail, postage prepaid, or sent by fax, to the address of
such Person as shown in the Note Register. Any notice so mailed within the time
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prescribed in this
Agreement will be conclusively presumed to have been properly given, whether or not the Noteholder
receives such notice.
Section 6.5. Assignment. This Agreement may not be assigned by the Indenture
Administrator unless the Indenture Administrator obtains the consent of the Issuer and the Owner
Trustee and Rating Agency Confirmation for such action. Notwithstanding the foregoing, this
Agreement may be assigned by the Indenture Administrator without the consent of the Issuer or the
Owner Trustee or Rating Agency Confirmation to a Person that is a successor (by merger,
consolidation or purchase of assets) to the Indenture Administrator or to an Affiliate of the
Indenture Administrator, provided, that such Person or such Affiliate executes and delivers
to the Issuer, the Owner Trustee and the Indenture Trustee an agreement in which such Person or
such Affiliate agrees to be bound under this Agreement in the same manner as the Indenture
Administrator is bound under this Agreement. Subject to the foregoing, this Agreement will bind
any successors or assigns of the parties to this Agreement.
Section 6.6. Third-Party Beneficiary. This Agreement will inure to the benefit of and
be binding upon the parties to this Agreement. The Owner Trustee will be a third-party beneficiary
of this Agreement. Except as
otherwise provided in this Agreement, no other Person will have any right or obligation under
this Agreement.
Section 6.7. GOVERNING LAW. THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK.
Section 6.8. Submission to Jurisdiction. The parties submit to the nonexclusive
jurisdiction of the United States District Court for the Southern District of New York and of any
New York State Court sitting in New York, New York for purposes of all legal proceedings arising
out of or relating to this Agreement. The parties irrevocably waive, to the fullest extent they may
do so, any objection that they may now or hereafter have to the laying of the venue of any such
proceeding brought in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum.
Section 6.9. WAIVER OF JURY TRIAL. EACH PARTY TO THIS AGREEMENT IRREVOCABLY WAIVES,
TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS
AGREEMENT.
Section 6.10. Severability. If any of the covenants, agreements or terms of this
Agreement is held invalid, illegal or unenforceable, then it will be deemed severable from the
remaining covenants, agreements or terms of this Agreement and will in no way affect the validity,
legality or enforceability of the remaining Agreement.
Section 6.11. Counterparts. This Agreement may be executed in any number of
counterparts. Each counterpart will be an original, and all counterparts will together constitute
one and the same instrument.
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Section 6.12. Headings. The headings in this Agreement are included for convenience
only and will not affect the meaning or interpretation of any provision of this Agreement.
Section 6.13. No Petition. Each party to this Agreement covenants that for
a period of one year and one day (or, if longer, any applicable preference period) after payment in
full of the Notes, all Exchange Notes, and all distributions to all Holders of Certificates and all
holders of any other Securities (as
defined in the related Titling Company Agreement) the payments on which are derived in any
material part from amounts received with respect to any Titling Company Assets (as defined in the
applicable Titling Company Agreements), it will not institute against, or join any Person in
instituting against, the Issuer, the Depositor, any Holding Company, any Titling Company, or the
Holders of the Collateral Specified Interest Certificates any bankruptcy, reorganization,
arrangement, insolvency or liquidation proceedings, or other proceedings under any United States
federal or state bankruptcy or similar law in connection with any obligations relating to the
2011-A Exchange Note, the Notes, this Agreement or any of the other 2011-A Basic Documents and
agrees it will not cooperate with or encourage others to file a bankruptcy petition against the
Issuer, the Depositor, any Holding Company, any Titling Company or the Holders of the Collateral
Specified Interest Certificates during the same period.
Section 6.14. Not Applicable to Ford Credit in Other Capacities. Nothing in this
Agreement will affect any right or obligation Ford Credit may have in any other capacity.
Section 6.15. Limitation of Liability of Owner Trustee and Indenture Trustee.
(a) This Agreement has been signed on behalf of the Issuer by U.S. Bank Trust National
Association not in its individual capacity but solely in its capacity as Owner Trustee of the
Issuer. In no event will U.S. Bank Trust National Association in its individual capacity or any
beneficial owner of the Issuer have any liability for the representations, warranties, covenants,
agreements or other obligations of the Issuer under this Agreement or in any of the certificates,
notices or agreements delivered pursuant to this Agreement. For all purposes of this Agreement, in
the performance of any duties or obligations of the Issuer under this Agreement, the Owner Trustee
will be subject to, and entitled to the benefits of, the terms and provisions of the Trust
Agreement.
(b) This Agreement has been countersigned by The Bank of New York Mellon, not in its
individual capacity but solely as Indenture Trustee. In no event will The Bank of New York Mellon
have any liability for the representations, warranties, covenants, agreements or other obligations
of the Issuer under this Agreement or in any of the certificates, notices or agreements delivered
pursuant to this Agreement, as to all of which recourse will be had solely to the assets of the
Issuer.
[Remainder of Page Intentionally Left Blank]
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EXECUTED BY:
FORD CREDIT AUTO LEASE TRUST 2011-A, as Issuer |
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By: | U.S. BANK TRUST NATIONAL ASSOCIATION, not in its individual capacity but solely as Owner Trustee |
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By: | ||||
Name: | ||||
Title: | ||||
THE BANK OF NEW YORK MELLON, not in its individual capacity but solely as Indenture Trustee |
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By: | ||||
Name: | ||||
Title: | ||||
FORD MOTOR CREDIT COMPANY LLC, as Indenture Administrator |
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By: | ||||
Name: | ||||
Title: | ||||
AGREED AND ACCEPTED BY: | ||
FORD CREDIT AUTO LEASE TWO LLC, as Depositor |
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By: |
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Name: | ||
Title: |
[Signature Page to Administration Agreement]