Ally SmartLease Worksheet Instructions (676-AF LEASE WRKSHT 8/2011) Attachment B For Use with Ally SmartLease Agreement 10 (AF-671-MULTISTATE 8/11)

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1 (676-AF LEASE WRKSHT 8/2011) Attachment B For Use with Ally SmartLease Agreement 10 (AF-671-MULTISTATE 8/11) Following are line-by-line instructions to assist with programming dealership F&I systems to complete entries on Ally SmartLease Worksheets identified (in the lower left corner) as form 676-AF LEASE WRKSHT dated 8/2011. These instructions will also assist dealerships with completing the worksheet entries. Front of Worksheet Dealership Name Enter dealer name. Lessee Name Enter lessee name. New X if applicable. Used X if applicable. Prior Demo X if the vehicle being leased is an out-of-service dealership demonstrator. PEP/COVPP X if the lease is of a former OEM company vehicle under the terms of that OEM s Company-Owned Vehicle Purchase/Lease Program. The lessee must be an eligible participant in the program. The Employee box must also reflect an X in such instances. Employee X" if the lease is for a vehicle with a qualified OEM discount and the employee or person is eligible for a vehicle discount as defined by the OEM. Also, if the PEP/COVPP box contains an "X", this box should contain an "X". Low Mileage Lease X if the mileage allowance is less than 12,001 per year and the Low Mileage Residual Value Increment from Line 20 Residual Value Increment is applicable (both of these conditions must be met). Link to Line 16B if possible, in which case, for low mileage leases, the amount entered in both columns of Line 16B must be a multiple of 12,000 miles per year (or 1,000 miles per month if the lease is for an odd term). Effective November 1, 2011, lessees may not purchase additional miles (Line 16A may not exceed a multiple of 12,000 per year or 1,000 miles per month if the lease is for an odd term). Monthly - X if the lease is a monthly payment lease. Single X if the lease is a single payment lease. Lease Term Enter the actual number of contracted months. If edits are possible, preclude entries less than 12 months. Also preclude entries greater than 60 months. For monthly payment transactions, copy the lease term to Line 33. For single payment transactions, the entry to Line 33 should always be a 1. The lease term will also be used in calculating the Lines 18 and 28 amounts. Effective Rate (to be completed by Ally) Do not program dealership F&I systems to print anything on this line leave it blank.

2 Line 1 If edits are possible, restrict to only new vehicles. Enter the new vehicle's total MSRP (including destination charge) from the vehicle's invoice in the "Agreed Upon Value" column. Enter the identical amount in the "Residualizable Amount" column. Line 1A If edits are possible, restrict to only new vehicles and to a maximum markup factor of 115% of MSRP for terms of months and 110% of MSRP for terms of months (NOTE: terms of months for Maserati vehicles only). Line 1B If edits are possible, restrict to only new vehicles. Calculate the product of Line 1 times Line 1A. Line 2 No entry to Line 2. Preferred Equipment Group Discounts (PEG) also known as Option Package Discounts (OPD) are not eligible to be added back to the MSRP to calculate the residual value. Line 3 No entry. Line 3A In the "Agreed Upon Value" column, enter the amount(s) of any dealer installed option(s) to be capitalized and residualized. The capitalized amount cannot be more than 115% of dealer cost (substantiated by invoice), not to exceed MSRP for each item. For each dealer installed option eligible to be residualized per the RVLG, determine the amount from the new vehicle "Dealer Installed Options" pages located near the front of that guide and enter it into the "Residualizable Amount" column. Conversions: Conversion packages, if listed in the current RVLG, can be capitalized at no more than 115% of net dealer cost and residualized at 100% of net dealer cost. Only models listed in the RVLG with a conversion deduction are eligible for residualization. Upfits for Light Duty Commercial Trucks: Upfits for light duty commercial trucks, if listed in the current RVLG, can be capitalized and residualized at no more than 115% of the dealer cost of the upfit. NOTE: Conversion and upfit packages must be approved. Line 3B - If edits are possible, restrict to only new vehicles. This amount may be the unresidualized balance of a capitalized and residualized item listed on Line 3A (e.g., if the dealer installed option is $1200 but only $700 is residualizable, enter $700 on Line 3A and $500 on Line 3B). The amount cannot be more than 115% of dealer cost (substantiated by invoice), not to exceed MSRP for each item. Line 3C - If edits are possible, restrict to only new vehicles. Enter the MSRP amount of any equipment removed in both columns. The amounts entered in both columns must be identical. Line 3D - If edits are possible, restrict to only new vehicles. Enter the sum of the dealer installed options amounts, less removed equipment, in the "Agreed Upon Value" column. Line 4 For new vehicles, total the amounts from Lines 1B and 3D. For used vehicles, if the dealership uses the Certified* program, same entry as Line R7, if the Non-Certified program is used, same entry as Line R5 amount. *NOTE: Only if available. Line 5 If edits are possible, restrict to only new vehicles. Total the Lines 1, 2, 3A and 3C amounts. If the lease is for a new vehicle, same entry as Line 19. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 2

3 Line 6 Enter the gross trade-in value. If multiple trade-ins are involved, this is the cumulative total amount. If there is no trade enter a N/A in this field. Line 6A Enter the payoff amount. If multiple trade-ins are involved, this is the cumulative total amount. Line 6B This is the difference between the Line 6 and Line 6A amounts. If multiple trade-ins are involved, this is the cumulative difference. If a negative results, reflect it in brackets. A negative amount is referred to as negative trade equity. NOTE: In the state of VT, negative trade equity must be completely offset by cash, capitalized cost reduction allowance (CCRA) and/or rebates. Lines 6C Enter applicable amount only if line 6B is a positive amount. Line 6D Enter applicable amount only if Line 6B is a positive amount. If so, Lines 14B and 37B are the same as Line 6B. If Line 6B is negative, Lines 14B and 37B are N/A. Line 6E Enter applicable amount only if Line 6B is a positive amount. Line 7 As determined by the dealership. If edits are possible, this amount must not exceed the Line 4 amount. This is the basis from which the "Adjusted Capitalized Cost" will be determined. Line 8 The Ally Administrative Fee may be capitalized or paid at lease inception on monthly payment leases. If capitalized, the appropriate amount is to be reflected on this line. Do not capitalize for single payment leases This fee is based on the vehicle s garaging state. The dealership should be able to enter a default dollar amount specific to their area of business. The dealership should be able to override the default amount if necessary. Current Ally administrative fee amounts are listed in the Ally SmartLease Dealer Policy and Procedure Manual. (NOTE: If this fee is to be paid at lease signing or delivery, do not enter the applicable amount on Line 8, but on Line 41D.) Line 9A As determined by the dealership. Enter the price, if applicable. Do not capitalize for single payment leases.* Line 9B As determined by the dealership. Enter the price, if applicable. Do not capitalize for single payment leases.* Line 10 As determined by the dealership. Enter the premium (applicable only for monthly payment leases). N/A for single payment leases. Line 11 As determined by the dealership. Enter the premium (applicable only for monthly payment leases). N/A for single payment leases. Line 12 No entry. Lines 12A 12E Enter the cost of each designated amount that will be capitalized. Do not capitalize for single payment leases.* (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 3

4 Line 12F The dealership describes and enters any additional capitalized amount(s). If negative trade equity is allowed to be capitalized, the amount entered should be the same as Line 6B if the full amount is being capitalized. If a partial amount of negative trade equity is being capitalized, enter the partial amount to be capitalized. The difference between (the positive of Line 6B) and Line 12F (when Line 12F is used for Negative Trade Equity) should be entered on Line 41G. Do not capitalize for single payment leases.* *NOTE: If these items are included with a single payment lease they should appear on the appropriate line in the Amount Due at Signing or Delivery section of the worksheet. Line 12G Total the Lines 12A 12F amounts. Line 13 Total the amounts from Lines 7, 8, 9A, 9B, 10, 11 and 12G. Line 14 No entry. Line 14A This is the amount of cash (no cash permitted for single payment leases) the lessee wishes to contribute towards reducing the capitalized cost of the vehicle to be leased. Same as Line 37A. For single payment leases this amount must be 0. Line 14B This is the amount of any positive trade equity the lessee wishes to contribute toward reducing the capitalized cost of the vehicle. Same as Line 6D. Line 14C Enter the total amount of any applicable OEM Credit Card Points Rebate and/or other rebates intended to reduce the "Gross Capitalized Cost." (Do not include any "dealer cash" type rebates. Dealer cash rebates are at the option of the dealer and, if passed to the lessee, are used to reduce the agreed upon value of the vehicle.) The Line 14C amount must equal the total of Lines 37C 37G. Line 14D Total the Lines 14A 14C amounts. The Line 14D amount must equal the same as Line 38. Line 15 Enter the difference between Lines 13 and 14D. Same as Lines 29 and 47. Line 16 Allow for dealership entry of the actual odometer mileage of the vehicle at lease inception. This mileage must equal that on the associated Mileage Odometer Statement. Line 16A Allow the dealership to enter the total number of miles the lessee expects to drive during the scheduled term of the lease. Rounding may affect this amount (see the associated Line 16C explanation). For leases of PEP/COVPP vehicles to eligible employees, or for leases of prior demos, lessees may choose an anticipated mileage figure that is less than the standard mileage allowance to offset all or a portion of the vehicles actual odometer mileage at lease inception. Such reductions are not to exceed 7,500 miles for prior demos and 25,000 miles for PEP/COVPP vehicles. No rounding is required. Line 16B Enter the standard mileage (1,250 miles per month) or low mileage (1,000 miles per month) or ultra low mileage (834 miles per month) allowance times the lease term in both the "Extra Mileage Calculation" and "Allowed Mileage" columns. The amounts in both columns must be identical. If possible, default the field to standard mileage allowance. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 4

5 Line 16C For the first column, calculate and reflect the difference (if any) between the Lines 16A and 16B amounts. Copy the resulting amount to the second column. If rounding is necessary, round up and enter the resulting outcome on this line (e.g., an intended extra mileage allowance of 5,000 for a 36-month lease equates to miles per month which, when rounded, becomes 139 miles per month or 5,004 miles for the full lease term). If edits are possible, no extra miles are allowable for low mileage and ultra low mileage leases. If the vehicle is a PEP/COVPP or Demo, the result may be negative. The negative result may not exceed the number of miles shown on Line 16, nor may it exceed 7,500 miles for Demo units or 25,000 miles for PEP/COVPP units. If negative, Line 16C amounts should be shown in brackets. Do not round up if the amount is not evenly divisible by the term. NOTE: For leases of Prior Demos or Prior PEP/COVPP vehicles, extra miles cannot be purchased if the lessee opts to reduce the base mileage allowance by all or a portion of the vehicle's starting odometer mileage. Lessees leasing Prior PEP/COVPP or Prior Demo vehicles must contract for the standard mileage allowance (15,000 miles annually or 12,000 miles annually for low mileage) in order to purchase extra mileage. No extra miles are allowed on Low Mileage and Ultra Low Mileage leases. For Maserati no extra miles are allowed on Low and Ultra Low Mileage leases. Line 16D If Line 16C is positive, enter the lease inception cost for each refundable extra mile. If Line 16C is negative enter "N/A" in this field. NOTE: Current Extra Mileage charges (per mile) are listed in the Ally SmartLease Dealer Policy and Procedure Manual. Line 16E If Line 16C is positive, multiply Line 16C by Line 16D and enter the resulting amount. Also copy the resulting amount to Line 22. If Line 16C is negative enter N/A in this field. Line 17 Total Lines 16, 16B, and 16C in the Allowed Mileage column. Line 18 This is the Line 16A amount divided by the lease term in months, multiplied by 12 months. Line 19 If edits are possible, restrict entries to leases of new vehicles only. Same as Line 5. For used vehicles, enter N/A. Line 20 If edits are possible, restrict entries to leases of new vehicles only. Allow for dealership entry of the lease program residual percentage or RVLG residual percentage in the Base field and the low mileage/ultra low mileage percentage (if any) in the Low Mileage field. If edits are possible, do not allow entry to the low mileage percentage field if the lease term is less than 24 months or greater than 48 months (or greater than terms of 60 months for Maserati vehicles only). Total the two fields and enter the amount in the column. For used vehicles, enter N/A. Line 21 For new vehicles, this is the product of the Line 19 amount times the Line 20 percentage. For used vehicles, if the dealership uses the Certified program, same entry as Line R10, if the Non-Certified program is used, same entry as Line R12. Line 22 Same as Line 16E. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 5

6 Line 23A This line is applicable only to new vehicles, prior demos, and eligible employee leases of PEP/COVPP vehicles. If edits are possible, restrict accordingly. The entry will be a deduction. If 500 or fewer miles exist on a new vehicle s odometer at lease inception, the entry to this line is always $0 (zero). If a new vehicle has more than 500 miles on its odometer at lease inception or if the vehicle is a prior demo or an employee lease of a PEP/COVPP vehicle, the entry is the same as Line 52C. Line 23B Allow for dealerships to enter additional depreciation-related amounts (such as a reduction for a truck that is to be used commercially), together with a brief explanation. Line 24 This is the sum of the amounts from Lines 21, 22, 23A, and 23B. Also copy the resulting amount to Lines 30 and 44. Lines If the vehicle is to be garaged in ID or WA. Refer to the substitute calculation on the reverse (Lines R14 through R18). Line 25 - Calculate the base payment amount derived from NetQuote or the dealer s F&I system. Use the Total Lease Factor (from the bottom right corner of the worksheet) as the applicable lease rate. Line 25A No entry (this is currently an unused line). Line 25B This is the sum of the Lines 25 and 25A monthly amounts. Also copy the resulting amount to Line 32. Line 26 No entry. Line 26A Allow for entry of the applicable sales/use tax rate (percentage) for the locale where the leased vehicle will be garaged. Determine the applicable monthly dollar amount by multiplying the sales/use tax rate times the Line 25B amount (truncating the result). Line 26B Allow for entry of the applicable personal property tax factor, if any, for the locale where the leased vehicle will be garaged. The basis for application of the factor (MSRP, agreed upon value, etc.) varies from state to state and will not change from previous programming parameters. If allowed to be paid annually, no entry will be made on Line 26B. Line 26C Allow for entry of a rate (percentage) and/or a corresponding monthly dollar amount, as might be applicable for ad valorem, excise, or other types of recurring taxes that are collected and remitted by Ally. Also, allow for dealership entry of a brief description. Line 27 This is the total of the Lines 25B, 26A, 26B and 26C amounts. Line 28 This is the product of the Line 27 amount times the term of the lease in months (as indicated at the top of the Worksheet). For single payment leases this is the same as Line 27. Line 29 Same as Line 15. Line 30 Same as Line 24. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 6

7 Line 31 This is the difference between the Line 29 and 30 amounts. Negative depreciation is not allowable. If the result of Line 7 less Line 14D is less than the Line 24 plus Line 22, negative depreciation exists. In such case the Base Residual Value (Line 21) must be further reduced so it becomes at least $1.00 less than Line 7 minus Line 14D. This further reduction should be shown on Line 23B. Negative depreciation may not be offset by contracting for Refundable Extra Miles. Line 32 Enter the amount from Line 25 to this line except for leases involving vehicles garaged in the states of Washington and Idaho. For vehicles garaged in Washington and Idaho, enter the amount from Line R16. Line 33 For monthly payment leases copy the term of the lease in months (as indicated at the top of the Worksheet) to this line. For single payment leases the entry is always 1. Line 34 This is the product of the Line 32 amount times Line 33. Line 35 Same as Line 31. Line 36 This is the difference between the Lines 34 and 35. The result cannot be negative. Line 37 No entry. Line 37A Same as Line 14A. Must be 0 for single payment leases. Line 37B Copy the Line 6D amount to this line. Line 37C Allow the dealership to enter the full amount of any applicable Capitalized Cost Reduction Allowance on this line. (NOTE: Capitalized Cost Reduction Allowances are not discretionary-type rebates. They must be used in their entirety towards reducing the capitalized cost of the leased vehicle.) Line 37D Allow the dealership to enter the full amount of any applicable College Graduate Program Allowance on this line. (NOTE*: College Graduate Program Allowances are not discretionary-type rebates. They must be used in their entirety towards reducing the capitalized cost of the leased vehicle.) * If Available Line 37E Allow the dealership to enter all or any portion of an eligible OEM Credit Card Points Rebate that will be used for capitalized cost reduction purposes. NOTE: OEM Credit Card Points Rebates are discretionary to the extent the lessee can allocate portions to be used towards any valid costs attributable to the lease. Such costs include fees, taxes, the first monthly payment and other amounts that will be paid up-front, as well as contributions towards the total capitalized cost reduction. No portion of an OEM Credit Card Points Rebate can be returned to the lessee as cash or otherwise retained by the lessee for use outside of the scope of the lease. Lines 37F and 37G Allow the dealership to enter any other amounts that might be applicable or designated to be used for capitalized cost reduction purposes. Dealerships must also enter a brief description of the nature of the associated amount. Line 38 This is the total of the Lines 37A 37G amounts. Same as Line 14D. Line 39 Same as Line 27. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 7

8 Line 40 Unless the transaction is a single payment lease, calculate the Security Deposit amount by rounding the Line 27 amount to the next $25 increment. For single payment leases divide Line 27 by the term of the lease and round up to the next $25 increment. Same as Line 48B. Allow the dealership to override the calculated amount if the Security Deposit is to be waived, the amount should be $0. (see lower left corner of the front of the Worksheet for Security Deposit Waiver indicator). NOTE: For leases to residents of New York State the maximum security deposit is $725. Line 41 No entry. Lines 41A 41C As determined by the dealership. Enter the applicable amounts. Lines 41D Ally Administrative Fee paid at lease inception. Line 41E Dealerships can accommodate lessees needs to adjust their monthly lease payment due dates to correspond to their paydays or other convenient times. In conjunction with implementing this Worksheet, the following factors will influence determination of the associated fee: The maximum due date adjustment period is 15 calendar days from the first month anniversary date of the lease. In instances where there is no corresponding first payment anniversary date (e.g., lease dated January 31 has no corresponding date in February) the days will be calculated using the last day of the month as the anniversary date. Ally determines a potentially lower capitalized cost for purposes of calculating this fee. All amounts that are not subject to depreciation, except for the Ally Administrative Fee, are removed from being components of the capitalized cost and the resulting monthly payment amount. Such amounts can include (but are not limited to): creditor insurance premiums; warranty and service contract costs; title, license and registration fees; capitalized tax; etc. Ally then recalculates the monthly payment (using the potentially lower capitalized cost but the same rate and lease term). Divide the adjusted payment amount by 30 and multiply the result by the number of days the due date is to be adjusted. For purposes of assessing Selective Due Date Fees and determining the adjusted due dates, Ally considers all months to be exactly 30 days in duration. (NOTE: This same logic applies to all due date-related aspects, as explained further at the end of this set of instructions.) Line 41F As determined by the dealership. This item is for any sales/use taxes collected at inception, not collected in the monthly lease payment. Examples of this are sales/use taxes on capitalized cost reductions, or taxes on selective due date fees. Line 41G If the Line 6B amount is negative, the full or partial amount may be offset on this line by cash, eligible discretionary rebates, or a combination of both. The amount of 41G should be equal to the difference between (the positive of Line 6B) and 12F (when 12F is used for negative equity). These amounts are exclusive of amounts entered in Lines 37A-G. Line 41H This is the total of the Lines 41A 41G amounts. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 8

9 Line 42 Allow for dealerships to use this line to describe and enter any other amounts to be paid at lease inception. Additionally, this line would be used for any reductions to the amount due at lease signing or delivery not identified previously (for example, dealer credit toward 1 st payment, dealer payment of sale/use taxes, etc.) Line 43 This is the total of the Lines 38, 39, 40, 41H and 42 amounts. Line 44 Same as Line 24. Line 45 Current Purchase Option Increments are listed in the Ally SmartLease Dealer Policy and Procedure Manual. Line 46 This is the total of the Lines 44 and 45 amounts. Line 47 Same as Line 15. Line 48 No entry. Line 48A Same as Line 39. Line 48B Same as Line 40. Line 48C This is the total of the Lines 48A and 48B amounts. Line 49A and 49B Allow for dealerships to use these lines to describe and enter any other amount(s) that would negatively or positively impact their settlement from Ally. For instance, the settlement amount due the dealership would: Decrease by the amount of any Selective Due Date Fee (Line 41F). Decrease by the amount of tax collected on Administrative Fee, if paid at inception (Line 41D multiplied by the Line 26A percentage). Decrease by the amount of tax collected in conjunction with a Selective Due Date Fee (Line 41E multiplied by the Line 26A percentage). Decrease by the amount of any manufacturer s credit toward lessee payments or single periodic payment. Increase by the amount of any Capitalized Cost Reduction Allowance (Line 37C). Increase by the amount of any College Graduate Allowance (Line 37D). Line 50 If the Ally Administrative Fee is capitalized enter the amount of the Administrative Fee (Line 8). If paid at lease inception, enter the Line 41D amount on this line. It is possible that a portion of the Ally Administrative Fee will be paid at lease inception and a portion capitalized. If that is the case the amount would be the total of Line 8 and Line 41D. Line 51 This is the total of, or difference between, the Line 47 amount and the Lines 48C, 49, 50 amounts. Line 52 No entry. The associated Lines 52A-52C are to be completed for new vehicles if their odometer readings at lease inception exceed 500 miles. These lines are also to be completed when prior demos have up to 7,500 miles on their odometers, or when previous PEP/COVPP vehicles are leased by eligible employees and have up to 25,000 miles on their odometers. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 9

10 The following instructions apply to those instances when residual value adjustments attributable to existing mileage are necessary: Line 52A Allow dealerships to enter the actual odometer mileage for new vehicles. If edits are possible, do not allow entries of fewer than 501 miles. For PEP/COVPP or Demo units enter the difference between Lines 16B from Line 17. Line 52B Allow dealerships to enter the currently applicable lease inception mileage cost (shown below) for the particular vehicle. NOTE: Beginning mileage adjustment rates are listed in the Ally SmartLease Dealer Policy and Procedure Manual. Line 52C This is the product of the Line 52A mileage times the Line 52B cost per mile. Same as Line 23A. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 10

11 Salesperson As applicable. Enter the name of the salesperson. Submitted to Ally Allow for dealership entry of the Time, Date, Approved By, Time, Date and Application Number information. Vehicle Description Allow for dealership entry of the Year, Make, Model and VIN. Administrative Message # - Allow for dealership entry of the Incentive Message Number if the lease qualifies under the terms of an OEM incentive program. If Line 40 is $0 (zero) or N/A, the following sections must be completed. Security Deposit Waiver Allow for the dealership to X the appropriate box. If edits are possible, require a No or Yes response. If Yes, Customer Rate Increase? The dealership must check one of these boxes if Yes is indicated for the Security Deposit Waiver (if edits are possible, please program accordingly). If a Customer Rate Increase applies, it is to be entered on the Security Deposit Waiver line of the MEMO: Program Lease Factor: area (to the right of the arrow). Currently, the associated rate increment is 0.50 p.p. Loyalty Program - A Yes response applies only if the security deposit was validly waived under Lease Loyalty provisions, in which case an authorization number is required. Please edit accordingly, if possible. If the answer to the previous question was No, allow for the dealership to X the appropriate box. If the answer to the previous question was Yes this item does not apply If Yes, Authorization # - Allow for dealership entry of the Lease Loyalty program security deposit waiver authorization number. Other Reason for Waiver (describe) If the answer to all the previous questions was No, allow for dealership entry of an alternative explanation of why a security deposit waiver was granted if there was no corresponding customer rate increase (i.e. SmartLease Protect). If the responses to the any of the previous edits are Yes, preclude completion of this line. THE FOLLOWING LEASE INCREMENTS AND DECREMENTS MUST BE ENTERED AND CALCULATED IN THE EXACT ORDER AS INDICATED BELOW. Program Lease Factor: - This is the base lease rate applicable to the transaction. This is either the dealership s standard rate or the program rate announced in the manufacturer s administrative message. Rate Decrement: - Allow the dealership to enter any rate reduction percentage that they are entitled to in this field (for example: promotions offered in conjunction with Auto Shows and Tent Sales, Super S tiers, etc). Single Payment Lease Decrement: - For single payment leases see the Ally SmartLease Dealer Policy and Procedure Manual for the current decrements applicable to months or months. If edits are possible, reduce the monthly payment lease rate as indicated in the preceding paragraph whenever the single payment lease box at the top of the Worksheet is checked. NOTE: At this point in the rate calculation, edit for the minimum lease rate of 0.01 p.p. See the Ally SmartLease Dealer Policy and Procedure Manual for the minimum attainable rate (subject to manual override). (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 11

12 Dealer Lease Factor: - Allow for dealership entry of the increment, if any, for allowed participation in the lease rent charges. If possible, populate the field that follows with the dealer dollar equivalent of the dealer finance income that the dealership expects to receive. NOTE: The calculation is the difference between the base monthly lease payment at the customer rate and the base monthly payment at the announced rate, times the term of the lease. (e.g. $425 (base payment at customer rate) - $400 (base payment at announced rate) = $25. $25 x 36 month term = $900 DFI). Security Deposit Waiver: - If the dealership indicated Yes in the Customer Rate Increase box of the Security Deposit Waiver section, allow the dealership to enter the applicable rate increment. The increment is currently 0.50 p.p. Federally Tax-Exempt: - In this field allow for dealership entry of the rate increment (currently 0.75 p.p.) assessed for entities exempt from federal income tax (e.g., non-profit organizations, churches, etc.). NOTE: A copy of the Federal Tax I.D. or letter verifying tax exempt status is required to accompany the lease package. Other Increment: - Allow for dealership entry of any other applicable rate increment Total Lease Factor: - This is the sum of all of the preceding increments and decrements, as applicable, in the MEMO: Program Lease Factor: column. NOTE: Completed Worksheets must reflect all applicable components used in deriving the Total Lease Factor. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 12

13 Reverse of Worksheet - Upper The upper half of the reverse of the Ally SmartLease Worksheet applies only to leases of used vehicles. Completion of this section of the Worksheet relies heavily on information contained in the current version of the Residual Value Lease Guide (RVLG). If the vehicle qualifies for a certified used program, complete both the Non-Certified and Certified columns of the worksheet. Dealerships may use either the standard used vehicle calculations, or increase the maximum lease amount and residual value by the percentages found in the Certified Pre-Owned Vehicles table in the RVLG. The dealership will select which program to use based on which calculation will provide the most favorable payment on the Certified used vehicle. If the used vehicle does not qualify for a certified pre-owned program, complete the Non-Certified columns of the used vehicle worksheet. Line R1 Dealerships can enter either the RVLG MxAmt (dollar value) associated with the model of the particular vehicle, or 120% of the documented cost of that vehicle to the dealership, whichever is higher. MxAmt from the RVLG and Maximum Amount on the Worksheet refer to the Agreed Upon Value limitation for the particular used vehicle. Line R2 Allow dealerships to enter the RVLG Residual Value (dollar amount) associated with the model of the particular vehicle. Line R3 Allow dealerships to enter the RVLG MxAmt (dollar value) and, separately, the RVLG Residual Value (dollar amount) associated with certain items of factory-installed equipment for the particular vehicle as listed in the RVLG. These can be either positive amounts (additions to the vehicle s value) or negative amounts (deductions from the vehicle s value) depending on whether each item of equipment listed in the RVLG does or does not exist on the particular vehicle. NOTE: If a dealership opted to use the 120% of documented dealer cost approach when determining the Maximum Amount for Line R1, no Line R3 Maximum Amount additions/deductions are permitted. Line R3 Residual Value additions/deductions, are applicable nonetheless. Line R4 Allow dealerships to capitalize, but not residualize, the total price of optional equipment they have installed on the used vehicle. Capitalize no more than 115% of dealer cost, not to exceed MSRP of each item. Line R5 Total the components (as applicable) from Lines R1, R3 and R4. If the dealership has identified the vehicle as ineligible for a Certified Pre-Owned program copy this amount to Line 4 on the front of the Worksheet. Line R6 Allow for dealership entry of the Max Amt percentage from the Certified Pre- Owned Vehicles table in the RVLG. Multiply the percentage by the Line R5 subtotal and enter the result in the Certified Used Maximum Amount column. Line R7 Total Lines R5 and R6. Copy this amount to Line 4 on the front of the Worksheet as applicable. Line R8 Total the components (as applicable) from Lines R2 and R3. Line R9 Allow for dealership entry of the Resid percentage from the Certified Pre-Owned Vehicles table in the RVLG. Multiply the percentage by the Line R8 subtotal and enter the result in the Certified Used Residual Value column. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 13

14 Line R10 Total the Residual Value amounts from Lines R8 and R9. Copy this amount to Line 21 on the front of the worksheet as applicable. Line R11 Enter the Residual Value beginning mileage adjustment (positive or negative) from Line R13D. Line R12 Total the Residual Value amounts from Lines R8 and R11 of this section of the Worksheet. If the dealership has identified that the vehicle does not qualify for a Certified program, copy the resulting sum to Line 21 on the front of the Worksheet. For vehicles eligible for a Certified Pre-Owned program, the dealership may use either: the maximum amount from Line R5 (copy to Line 4 on the front of the Worksheet) with the residual from Line R12 (copy to Line 21 on the front of the Worksheet). OR the maximum amount from Line R7 (copy to Line 4 on the front of the Worksheet) with the residual from Line R10 (copy to Line 21 on the front of the Worksheet). Line R13 Allow for the dealership to enter the corresponding standard beginning mileage amount from the table in the lower portion of this section of the Worksheet. Line R13A Allow for entry of the actual odometer mileage at lease inception. Line R13B Calculate the difference between Lines R13 and R13A. The outcome may be a positive or negative amount. Line R13C Allow for entry of the lease inception mileage cost factor. Currently, the applicable cost is $.10 per mile. Line R13D Multiply the Line R13B mileage times the Line R13C cost per mile. Same as Line R11. Reverse of Worksheet - Lower The lower half of the reverse of the Ally SmartLease Worksheet applies to all leases of new and used vehicles in Idaho and Washington when trade-ins are a factor. Line R14A Same as Line 6 from the front of the worksheet. Line R14B Same as Line 6E from the front of the worksheet. Line R14C Subtract Line R14B from Line R14A and enter the difference in the field. Line R14D Allow the dealership to enter the applicable sales/use tax rate. Line R14E Multiply Line R14C by Line R14D and enter the result in the field. Line R14F Multiply Line 6A (payoff) from the front of the worksheet by Line R14D. Enter the result in the calculation column. Line R14G Multiply Line R16 by Line R14D and enter the result in the field. Line R14H Divide Line R14F by Line R14G. Do not truncate. For example if Line R14F is $ and Line R14G is $25.00 the result is 9.60 exempt payments. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 14

15 Line R14I Subtract Line R14F from Line R14E and enter the difference in the field provided. Line R15 Enter the whole number from Line R14H (e.g., 9 from the example) in the first column, enter a 1 in the second column, enter the remaining lease term in the third column (e.g., if the lease term is 36 months, and the Line R14H number is 9, then the payment schedule would be as follows: 1 st 9 Month(s), Next 1 Month(s), Last 26 Month(s)). If the formula for Line R14H results in a whole number with no remainder, enter the remaining term in the second column and a 0 (zero) in the third column. Line R16 Calculate the base payment amount using the information provided for completion of Line 26A on the front of the worksheet. If there was no trade equity, populate only the first column. If the result of the calculation of Line R14H was a whole number with no remainder, populate the 1 st and 2 nd columns. If the result of the calculation of Line R14H had a remainder, populate all three columns. Multiply the base payment amount by the total lease term and transfer the resulting amount to Line 32 on the front of the worksheet. Line R17 No entry Line R17A Enter the tax rate from Line R14D in the percentage field. If there is no trade equity, enter the Line 14G amount in the first column. If there is trade equity, enter a 0 (zero) in the first column. For the second column, multiply Line R14F by the fraction from Line R14H and subtract the result from the Line R14G amount. Enter the Line R14G amount in the third column. If the calculation for Line R14H resulted in a whole number with no remainder, enter the Line 14G amount in the second column and enter a 0 (zero) in the third column. Line R17B Allow the dealership to enter the appropriate increment and any property tax amounts to be collected monthly in all three columns. Line R17C Allow the dealership to enter any additional amounts to be collected monthly in all three columns. Line R18 Enter the total of Lines R17A through R17C for each of the columns. Multiply each column by the Line R15 number. Total the results and enter this amount on Line 28 on the front of the Worksheet. Ally Due Date Routine - Monthly Payment Leases Ally considers all months to be exactly 30 days in duration. Therefore, absent a Selective Due Date Change, the due date for the second monthly lease payment and all subsequent payments will be anniversaries of the date of lease signing (which, in most cases is the date the first payment was due). For example, if a monthly payment lease is executed on January 31, all subsequent payments will be due on the 31 st of each month regardless of the fact not all months have 31 days. (676 LEASE WRKSHT 8/2011) MULTISTATE 1 (AK, AZ, DE, GA, KY, MN, MT, NV, NV, NM, NC, ND, OH, SD, TN, UT, VA and DC) 15