Document:

ex10_1.htm

    
      

    

    Exhibit 10.1

    

    AVIS
BUDGET RENTAL CAR FUNDING (AESOP) LLC,

    as
Issuer

    

    AVIS
BUDGET CAR RENTAL, LLC,

    as
Administrator

    

    JPMORGAN
CHASE BANK, N.A.,

    as
Administrative Agent

    

    CERTAIN
CP CONDUIT PURCHASERS,

    

    CERTAIN
FUNDING AGENTS,

    

    CERTAIN
APA BANKS

    

    and

    

    THE BANK
OF NEW YORK MELLON TRUST COMPANY, N.A.,

    as
Trustee and Series 2008-1 Agent

    

    _____________________

    

    AMENDED
AND RESTATED SERIES 2008-1 SUPPLEMENT

    dated as
of October 29, 2009

    

    to

    

    SECOND
AMENDED AND RESTATED BASE INDENTURE

    dated as
of June 3, 2004

    

    _____________________

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

    

    AMENDED
AND RESTATED SERIES 2008-1 SUPPLEMENT, dated as of October 29, 2009 (this “Supplement”), among
AVIS BUDGET RENTAL CAR FUNDING (AESOP) LLC, a special purpose limited liability
company estab­lished under the laws of Delaware (“ABRCF”), AVIS BUDGET
CAR RENTAL, LLC, a limited liability company established under the laws of
Delaware (“ABCR”), as
administrator (the “Administrator”),
JPMORGAN CHASE BANK, N.A. (“JPMorgan Chase”), in
its capacity as administrative agent for the CP Conduit Purchasers, the APA
Banks and the Funding Agents (the “Administrative
Agent”), the several commercial paper conduits listed on Schedule I and
their respective permitted successors and assigns (the “CP Conduit
Purchasers”; each, individually, a “CP Conduit
Purchaser”), the several banks set forth opposite the name of each CP
Conduit Purchaser on Schedule I and the other banks parties hereto pursuant to
Section 11.1 (each an “APA Bank” with
respect to such CP Conduit Purchaser), the agent bank set forth opposite the
name of each CP Conduit Purchaser on Schedule I and its per­mitted
successors and assigns (the “Funding Agent” with
respect to such CP Conduit Purchaser) and THE BANK OF NEW YORK MELLON TRUST
COMPANY, N.A. (as successor in interest to The Bank of New York), a national
banking association, as trustee (in such capacity, the “Trustee”) and as
agent for the benefit of the Series 2008-1 Noteholders (in such capacity, the
“Series 2008-1
Agent”), to the Second Amended and Restated Base Indenture, dated as of
June 3, 2004, between ABRCF and the Trustee (as amended, modi­fied or
supplemented from time to time, exclusive of Supplements creating a new Series
of Notes, the “Base
Indenture”).

    

    PRELIMINARY
STATEMENT

    

    WHEREAS,
ABRCF, the Trustee and the Series 2008-1 Agent entered into the Series 2008-1
Supplement, dated as of February 15, 2008 (as amended, the “Original Series 2008-1
Supplement”), pursuant to which the Series 2008-1 Notes were
issued;

    

    WHEREAS,
pursuant to Section 12.2 of the Base Indenture, any Supplement may be amended
with the consent of ABRCF, the Trustee, any applicable Enhancement Provider and
the Required Noteholders of a Series of Notes;

    

    WHEREAS,
pursuant to Section 11.11 of the Original Series 2008-1 Supplement, the
requirement contained in Section 12.2 of the Base Indenture shall be satisfied
upon attaining the consent of the Requisite Noteholders; and

    

    WHEREAS,
ABRCF desires to amend and restate the Original Series 2008-1
Supplement.

    

    NOW,
THEREFORE, the parties hereto agree as follows:

    

    DESIGNATION

    

    There was
created a Series of Notes issued pursuant to the Base Inden­ture and the
Original Series 2008-1 Supplement and such Series of Notes was designated
generally as Variable Funding Rental Car Asset Backed Notes, Series
2008-1.

    

    The
proceeds from the initial sale of the Series 2008-1 Notes were deposited in the
Collection Account and were paid to ABRCF and used to make Loans under the Loan
Agreements to the extent that the Borrowers had requested Loans thereunder and
Eligible Vehicles were available for acquisition or refinancing thereunder on
the date of the Original Series 2008-1 Supplement.  Any such portion
of proceeds not so used to make Loans were deemed to be Principal
Collections.

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    The
Series 2008-1 Notes are a non-Segregated Series of Notes (as more fully
described in the Base Indenture).  Accordingly, all references in this
Supplement to “all” Series of Notes (and all references in this Supplement to
terms defined in the Base Indenture that contain references to “all” Series of
Notes) shall refer to all Series of Notes other than Segregated Series of
Notes.

    

    ARTICLE
I

    

    DEFINITIONS

    

    (a)           All
capitalized terms not otherwise de­fined herein are defined in the
Definitions List attached to the Base Indenture as Schedule I
thereto.  All Article, Section, Subsec­tion, Exhibit or Schedule
references herein shall refer to Articles, Sections, Subsections, Exhibits or
Schedules of this Supplement, except as otherwise provided
herein.  Unless other­wise stated herein, as the context
other­wise requires or if such term is otherwise defined in the Base
Indenture, each capitalized term used or defined herein shall relate only to the
Series 2008-1 Notes and not to any other Series of Notes issued by
ABRCF.  In the event that a term used herein shall be defined both
herein and in the Base Indenture, the definition of such term herein shall
govern.

    

    (b)           The
following words and phrases shall have the following meanings with respect to
the Series 2008-1 Notes and the definitions of such terms are applicable to the
singular as well as the plural form of such terms and to the masculine as well
as the feminine and neuter genders of such terms:

    

    “ABCR” is defined in
the recitals hereto.

    

    “ABG” means Avis
Budget Group, Inc.

    

    “ABRCF” is defined in
the recitals hereto.

    

    “Acquiring APA Bank”
is defined in Section 11.1(c).

    

    “Acquiring Purchaser
Group” is defined in Section 11.1(e).

    

    “Additional CP Conduit
Purchaser” is defined in Section 2.6(e).

    

    “Additional Funding
Agent” is defined in Section 2.6(e).

    

    “Adjusted LIBO Rate”
means, with respect to each day during each Eurodollar Period, pertaining to a
portion of the Purchaser Group Invested Amount with respect to any Purchaser
Group allocated to a Eurodollar Tranche, an interest rate per annum (rounded
upwards, if necessary, to the nearest 1/16th of
1%) equal to the LIBO Rate for such Eurodollar Period multiplied by the
Statutory Reserve Rate.

    

    
      
        
           

        

        
          2

          
            

          

        

        
           

        

      

    

    

    “Adjusted Net Book
Value” means, as of any date of determination, with respect to each
Adjusted Program Vehicle as of such date, the product of 0.965 and the Net Book
Value of such Adjusted Program Vehicle as of such date.

    

    “Administrative Agent”
is defined in the recitals hereto.

    

    “Administrator” is
defined in the recitals hereto.

    

    “AESOP II Moody’s Excluded
Receivable Amount” means, as of any date of determination, the sum, with
respect to each Moody’s Non-Investment Grade Manufacturer as of such date, of
the product of (1) to the extent such amounts are included in the calculation of
the AESOP II Loan Agreement Borrowing Base as of such date, all amounts
receivable, as of such date, by AESOP Leasing II from such Moody’s
Non-Investment Grade Manufacturer and (2) the Moody’s Excluded Manufacturer
Receivable Specified Percentage for such Moody’s Non-Investment Grade
Manufacturer as of such date.

    

    “AESOP II Standard &
Poor’s Excluded Receivable Amount”  means, as of any date of
determination, the sum, with respect to each Standard & Poor’s
Non-Investment Grade Manufacturer as of such date, of the product of (1) to the
extent such amounts are included in the calculation of the AESOP II Loan
Agreement Borrowing Base as of such date, all amounts receivable, as of such
date, by AESOP Leasing II from such Standard & Poor’s Non-Investment Grade
Manufacturer and (2) the Standard & Poor’s Excluded Manufacturer Receivable
Specified Percentage for such Standard & Poor’s Non-Investment Grade
Manufacturer as of such date.

    

    “Affected Party” means
any CP Conduit Purchaser and any Program Support Provider with respect to such
CP Conduit Purchaser.

    

    “Alternate Base Rate”
means, for any day, a rate per annum equal to the greater of (a) the Prime Rate
in effect on such day and (b) the Federal
Funds Effective Rate in effect on such day plus 1⁄2 of 1%.  Any change
in the Alternate Base Rate due to a change in the Prime Rate or the Federal
Funds Effective Rate shall be effective from and including the effective day of
such change in the Prime Rate or the Federal Funds Effective Rate,
respectively.

    

    “APA Bank” is defined
in the recitals hereto.

    

    “APA Bank Funded
Amount” means, with respect to any Purchaser Group for any day, the
excess, if any, of the Purchaser Group Invested Amount with respect to such
Purchaser Group over the CP Conduit Funded Amount for such day.

    

    “APA Bank Percentage”
means, with respect to any APA Bank, the percentage set forth opposite the name
of such APA Bank on Schedule I.

    

    “Applicable Margin” is
defined in the Fee Letter.

    

    “ARAC” means Avis Rent
A Car System, LLC.

    

    
      
        
           

        

        
          3

          
            

          

        

        
           

        

      

    

    

    “A&R Effective
Date” is defined in Section 6.2.

    

    “Article VII Costs”
means any amounts due pursuant to Article VII and any interest accrued on such
amounts pursuant to Section 3.4.

    

    “Asset Purchase
Agreement” means, with respect to any CP Conduit Purchaser, the asset
purchase agreement, liquidity agreement or other agreement among such CP Conduit
Purchaser, the Funding Agent with respect to such CP Conduit Purchaser and the
APA Bank with respect to such CP Conduit Purchaser, as amended, modified or
supplemented from time to time.

    

    “Available APA Bank Funding
Amount” means, with respect to any Purchaser Group for any Business Day,
the sum of (i) the portion of such Purchaser Group’s Commitment Percentage of
the Series 2008-1 Initial Invested Amount not to be funded by such Purchaser
Group by issuing Commercial Paper if such Business Day is the Series 2008-1
Closing Date, (ii) the portion of the APA Bank Funded Amount with respect to
such Purchaser Group not allocated to a Eurodollar Tranche on such Business Day,
(iii) the portion of the APA Bank Funded Amount with respect to such Purchaser
Group allocated to any Eurodollar Tranche the Eurodollar Period in respect of
which expires on such Business Day and (iv) the por­tion of such Purchaser
Group’s Purchaser Group Increase Amount for such Business Day not to be funded
by such Purchaser Group by issuing Commercial Paper.

    

    “Available CP Funding
Amount” means, with respect to any Purchaser Group for any Business Day,
the sum of (i) the portion of such Purchaser Group’s Commitment Percentage of
the Series 2008-1 Initial Invested Amount to be funded by such Purchaser Group
by issuing Commercial Paper if such Business Day is the Series 2008-1 Closing
Date, (ii) the portion of the CP Conduit Funded Amount with respect to such
Purchaser Group allocated to any CP Tranche, the CP Rate Period in respect of
which expires on such Business Day and (iii) the portion of such Purchaser
Group’s Purchaser Group Increase Amount for such Business Day to be funded by
such Purchaser Group by issuing Commercial Paper.

    

    “Bank Accounts” is
defined in Section 11.16(f).

    

    “Benefited Purchaser
Group” is defined in Section 11.3(a).

    

    “Board” means the
Board of Governors of the Federal Reserve System or any successor
thereto.

    

    “BRAC” means Budget
Rent A Car System, Inc.

    

    “Business Day” means
any day other than (a) a Saturday or a Sunday or (b) a day on which banking
institutions in New York, New York, Charlotte, North Carolina,
Chicago, Illinois or the city in which the corporate trust office of the Trustee
is located are authorized or obligated by law or executive order to
close.

    

    “Certificate of Lease Deficit
Demand” means a certificate substantially in the form of Annex A to any Series
2008-1 Letter of Credit.

    

    
      
        
           

        

        
          4

          
            

          

        

        
           

        

      

    

    

    “Certificate of Termination
Date Demand” means a certificate substantially in the form of Annex D to any Series
2008-1 Letter of Credit.

    

    “Certificate of Termination
Demand” means a certificate substantially in the form of Annex C to any Series
2008-1 Letter of Credit.

    

    “Certificate of Unpaid Demand
Note Demand” means a certificate substantially in the form of Annex B to any Series
2008-1 Letter of Credit.

    

    “Change in Control”
means (a) ABG shall at any time cease to own or control, directly or indirectly,
greater than 50% of the Voting Stock of ABCR, ARAC or BRAC or (b) either ABRCF
or AESOP Leasing is no longer indirectly wholly-owned by ABCR.

    

    “Change in Law” means
(a) any law, rule or regulation or any change therein or in the interpretation
or application thereof (whether or not having the force of law), in each case,
adopted, issued or occurring after the Series 2008-1 Closing Date or (b) any
request, guideline or directive (whether or not having the force of law) from
any government or political subdivision or agency, authority, bureau, central
bank, commission, department or instrumentality thereof, or any court, tribunal,
grand jury or arbitrator, or any accounting board or authority (whether or not
part of government) which is responsible for the establishment or interpretation
of national or international accounting principles, in each case, whether
foreign or domestic (each an “Official Body”)
charged with the administration, interpretation or application thereof, or the
compliance with any request or directive of any Official Body (whether or not
having the force of law) made, issued or occurring after the Series 2008-1
Closing Date.

    

    “Claim” is defined in
Section 2.8.

    

    “Commercial Paper”
means, with respect to any CP Conduit Purchaser, the promis­sory notes
issued by, or for the benefit of, such CP Conduit Purchaser in the commercial
paper market.

    

    “Commitment” means,
with respect to the APA Banks included in any Purchaser Group, the obligation of
such APA Banks to purchase a Series 2008-1 Note on the Series 2008-1 Closing
Date and, thereafter, to maintain and, subject to certain conditions, increase
the Purchaser Group Invested Amount with respect to such Purchaser Group, in
each case, in an amount up to the Maximum Purchaser Group Invested Amount with
respect to such Purchaser Group.

    

    “Commitment Amount”
means, with respect to the APA Banks included in any Purchaser Group, an amount
equal to 102% of the Maximum Purchaser Group Invested Amount with respect to
such Purchaser Group.

    

    “Commitment Fee” is
defined in Section 2.7(e).

    

    “Commitment Fee Rate”
is defined in the Fee Letter.

    

    “Commitment
Percentage” means, on any date of determination, with respect to any
Purchaser Group, the ratio, expressed as a percentage, which such Purchaser
Group’s Maximum Purchaser Group Invested Amount bears to the Series 2008-1
Maximum Invested Amount on such date.

    

    
      
        
           

        

        
          5

          
            

          

        

        
           

        

      

    

    

    “Company indemnified
person” is defined in Section 2.8.

    

    “Conduit Assignee”
means, with respect to any CP Conduit Purchaser, any commer­cial paper
conduit administered by the Funding Agent with respect to such CP Conduit
Purchaser and designated by such Funding Agent to accept an assignment from such
CP Conduit Purchaser of the Purchaser Group Invested Amount or a portion thereof
with respect to such CP Conduit Purchaser pursuant to Section
11.1(b).

    

    “Confirmation
Condition” means, with respect to any Bankrupt Manufacturer which is a
debtor in Chapter 11 Proceedings, a condition that shall be satisfied upon the
bankruptcy court having competent jurisdiction over such Chapter 11 Proceedings
issuing an order that remains in effect approving (i) the assumption of such
Bankrupt Manufacturer’s Manufacturer Program (and the related Assignment
Agreements) by such Bankrupt Manufacturer or the trustee in bankruptcy of such
Bankrupt Manufacturer under Section 365 of the Bankruptcy Code and at the time
of such assumption, the payment of all amounts due and payable by such Bankrupt
Manufacturer under such Manufacturer Program and the curing of all other
defaults by the Bankrupt Manufacturer thereunder or (ii) the execution, delivery
and performance by such Bankrupt Manufacturer of a new post-petition
Manufacturer Program (and the related assignment agreements) on the same terms
and covering the same Vehicles as such Bankrupt Manufacturer’s Manufacturer
Program (and the related Assignment Agreements) in effect on the date such
Bankrupt Manufacturer became subject to such Chapter 11 Proceedings and, at the
time of the execution and delivery of such new post-petition Manufacturer
Program, the payment of all amounts due and payable by such Bankrupt
Manufacturer under such Manufacturer Program and the curing of all other
defaults by the Bankrupt Manufacturer thereunder; provided that
notwithstanding the foregoing, the Confirmation Condition shall be deemed
satisfied until the 90th
calendar day following the initial filing in respect of such Chapter 11
Proceedings.

    

    “Consent” is defined
in Article V.

    

    “Consent Period Expiration
Date” is defined in Article V.

    

    “Consolidated EBITDA”
has the meaning set forth in the Credit Agreement.

    

    “Consolidated Leverage
Ratio” has the meaning set forth in the Credit Agreement.

    

    “CP Conduit Funded
Amount” means, with respect to any Purchaser Group for any day, the
portion of the Purchaser Group Invested Amount with respect to such Purchaser
Group funded by such Purchaser Group through the issuance of Commercial Paper
outstanding on such day.

    

    “CP Conduit Purchaser”
is defined in the recitals hereto.

    

    
      
        
           

        

        
          6

          
            

          

        

        
           

        

      

    

    

    “CP Rate Period”
means, with respect to any CP Tranche, a period of days not to exceed 270 days
commencing on a Business Day selected in accordance with Section 2.7(b); provided that (x) if
a CP Rate Period would end on a day that is not a Business Day, such CP Rate
Period shall end on the next succeeding Business Day and (y) during the Series
2008-1 Amortization Period, each CP Rate Period shall end on or prior to the
next succeeding Distribution Date.

    

    “CP Tranche” means,
with respect to a Match Funding CP Conduit Purchaser, a portion of the CP
Conduit Funded Amount with respect to such Match Funding CP Conduit Purchaser
for which the Monthly Funding Costs with respect to such Match Funding CP
Conduit Purchaser is calculated by reference to a particular Discount and a
particular CP Rate Period.

    

    “Credit Agreement”
means the Credit Agreement, dated as of April 19, 2006, among Avis Budget
Holdings, LLC, as Borrower, ABCR, as Borrower, the subsidiary borrowers referred
to therein, the several lenders referred to therein, JPMorgan Chase, as
Administrative Agent, Deutsche Bank Securities Inc., as Syndication Agent, each
of Bank of America, N.A., Calyon New York Branch and Citicorp USA, Inc., as
Documentation Agents and Wachovia Bank, National Association, as
Co-Documentation Agent, as amended by the First Amendment thereto dated as of
December 23, 2008 but without giving effect to any further amendment thereto
made subsequent to the A&R Effective Date unless such amendment has been
approved in writing by the Requisite Noteholders.

    

    “Decrease” is defined
in Section 2.5(a).

    

    “Demand Note Issuer”
means each issuer of a Series 2008-1 Demand Note.

    

    “Demand Note Preference
Payment Amount” means, as of any day, (i) the aggregate amount of
all proceeds of demands made on the Series 2008-1 Demand Notes pursuant to
Section 3.5(c)(iii) or 3.5(d)(ii) that were deposited into the Series
2008-1 Distribution Account and paid to the Series 2008-1 Noteholders during the
one-year period ending on such day; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to a Demand Note Issuer shall have occurred during such one-year
period, the Demand Note Preference Payment Amount as of such day shall equal the
Demand Note Preference Payment Amount as if it were calculated as of the date of
such occurrence minus (ii) the
aggregate amount withdrawn from the Series 2008-1 Reserve Account or the Series
2008-1 Cash Collateral Account and paid to a Funding Agent pursuant to Section
3.7(e) on account of a Preference Amount.

    

    “Designated Amounts”
is defined in Article V.

    

    “Disbursement” means
any Lease Deficit Disbursement, any Unpaid Demand Note Disbursement, any
Termination Date Disbursement or any Termination Disbursement under a Series
2008-1 Letter of Credit, or any combination thereof, as the context may
require.

    

    “Discount” means, (a)
with respect to any Match Funding CP Conduit Purchaser, the interest or discount
component of the Commercial Paper issued by such Match Funding CP Conduit
Purchaser to fund or maintain the CP Conduit Funded Amount with respect to such
Match Funding CP Conduit Purchaser, including an amount equal to the portion of
the face amount of the outstanding Commercial Paper issued to fund or maintain
the CP Conduit Funded Amount with respect to such CP Conduit Purchaser that
corresponds to the portion of the proceeds of such Commercial Paper that was
used to pay the interest or discount component of maturing Commercial Paper
issued to fund or maintain such CP Conduit Funded Amount, to the extent that
such CP Conduit Purchaser has not received payments of interest in respect of
such interest component prior to the maturity date of such maturing Commercial
Paper, and including the portion of such interest or discount component
constituting dealer or placement agent commissions and (b) with respect to any
Pooled Funding CP Conduit Purchaser, the amount of interest or discount to
accrue on or in respect of the Commercial Paper issued by such Pooled Funding CP
Conduit Purchaser allocated, in whole or in part, by the Funding Agent with
respect to such Pooled Funding CP Conduit Purchaser, to fund the purchase or
maintenance of the CP Conduit Funded Amount with respect to such Pooled Funding
CP Conduit Purchaser (including, without limitation, any interest attributable
to the commissions of placement agents and dealers in respect of such Commercial
Paper and any costs associated with funding small or odd-lot amounts, to the
extent that such commissions or costs are allocated, in whole or in part, to
such Commercial Paper by such Funding Agent).

    

    
      
        
           

        

        
          7

          
            

          

        

        
           

        

      

    

    

    “Effective Date” is
defined in Section 6.1.

    

    “Eligible Assignee”
means a financial institution having short-term debt ratings of at least “A-1”
from Standard & Poor’s and “P-1” from Moody’s.

    

    “Eurodollar Period”
means, with respect to any Eurodollar Tranche and any Purchaser
Group:

    

    (a)           initially,
the period commencing on the Series 2008-1 Closing Date, the Increase Date or a
conversion date, as the case may be, with respect to such Eurodollar Tranche and
ending one month thereafter (or such other period which is acceptable to the
Funding Agent with respect to such Purchaser Group and which in no event will be
less than 7 days); and

    

    (b)           thereafter,
each period commencing on the last day of the immediately preceding Eurodollar
Period applicable to such Eurodollar Tranche and ending one month thereafter (or
such other period which is acceptable to the Funding Agent with respect to such
Purchaser Group and which in no event will be less than 7 days);

    

    provided that all
Eurodollar Periods must end on the next Distribution Date and all of the
foregoing provisions relating to Eurodollar Periods are subject to the
following:

    

    (i)           
if any Eurodollar Period would otherwise end on a day that is not a Business
Day, such Eurodollar Period shall be extended to the next succeeding Business
Day unless the result of such extension would be to carry such Eurodollar Period
into another calendar month, in which event such Eurodollar Period shall end on
the immediately preceding Business Day; and

    

    (ii)           any
Eurodollar Period that begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar
month at the end of such Eurodollar Period) shall end on the last Business Day
of the calendar month at the end of such Eurodollar Period.

    

    
      
        
           

        

        
          8

          
            

          

        

        
           

        

      

    

    

    “Eurodollar Tranche”
means, with respect to any Purchaser Group, a portion of the APA Bank Funded
Amount with respect to such Purchaser Group allocated to a particular Eurodollar
Period and an Adjusted LIBO Rate determined by reference thereto.

    

    “Excess Collections”
is defined in Section 3.3(e)(i).

    

    “Excluded Taxes”
means, with respect to the Administrative Agent, any CP Conduit Purchaser, any
APA Bank, any Funding Agent, any Program Support Provider or any other recipient
of any payment to be made by or on account of any obligation of ABRCF
here­under, (a) income or franchise taxes imposed on (or measured by) its
net income by the United States of America or by any other Governmental
Authority, in each case, as a result of a present or former connection between
the United States of America or the jurisdiction of such Governmental Authority
imposing such tax, as the case may be, and the Administrative Agent, such CP
Conduit Purchaser, such APA Bank, such Funding Agent, such Program Support
Provider or any other such recipient (except a connection arising solely from
the Administra­tive Agent’s, such CP Conduit Purchaser’s, such APA Bank’s,
such Program Support Provider’s or such recipient’s having executed, delivered
or performed its obligations here­under, receiving a payment hereunder or
enforcing the Series 2008-1 Notes) and (b) any branch profits tax imposed by the
United States of America or any similar tax imposed by any other jurisdiction in
which ABRCF is located (except any such branch profits or similar tax imposed as
a result of a connection with the United States of America or other jurisdiction
as a result of a connection arising solely from the Administrative Agent’s, such
CP Conduit Purchaser’s, such APA Bank’s, such Program Support Provider’s or such
recipient’s having executed, delivered or performed its obligations hereunder,
receiving a payment hereunder or enforcing the Series 2008-1
Notes).

    

    “Expiry Date” means,
with respect to any Purchaser Group, the earlier of (a) the Scheduled Expiry
Date with respect to such Purchaser Group and (b) the date on which an
Amortization Event with respect to the Series 2008-1 Notes shall have been
declared or automatically occurred.

    

    “Extending Purchaser
Group” means a Purchaser Group other than a Non-Extending Purchaser
Group.

    

    “Federal Funds Effective
Rate” means, for any day, the weighted average (rounded upwards, if
necessary, to the next 1/100 of 1%) of the rates on overnight Federal funds
transactions with members of the Federal Reserve System arranged by Federal
funds brokers, as published on the next succeeding Business Day by the Federal
Reserve Bank of New York, or, if such rate is not so published for any day
that is a Business Day, the average (rounded upwards, if necessary, to the next
1/100 of 1%) of the quotations for such day of such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

    

    
      
        
           

        

        
          9

          
            

          

        

        
           

        

      

    

    

    “Fee Letter” means the
letter dated the date hereof, from ABRCF addressed to the Administrative Agent
and each of the CP Conduit Purchasers, the Funding Agents and the APA Banks
setting forth certain fees payable from time to time to the Purchaser Groups, as
such letter may be amended or replaced from time to time.

    

    “Finance Guide” means
the Black Book Official Finance/Lease Guide.

    

    “Floating Tranche”
means, with respect to any Purchaser Group, the portion of the APA Bank Funded
Amount with respect to such Purchaser Group not allocated to a Eurodollar
Tranche.

    

    “Funding Agent” is
defined in the recitals hereto.

    

    “Inclusion Date”
means, with respect to any Vehicle, the date that is three months after the
earlier of (i) the date such Vehicle became a Redesignated Vehicle and (ii) if
the Manufacturer of such Vehicle is a Bankrupt Manufacturer, the date upon which
the Event of Bankruptcy which caused such Manufacturer to become a Bankrupt
Manufacturer first occurred.

    

    “Increase” is defined
in Section 2.3(a).

    

    “Increase Amount” is
defined in Section 2.3(a).

    

    “Increase Date” is
defined in Section 2.3(a).

    

    “Indemnified Taxes”
means Taxes other than Excluded Taxes.

    

    “Interest Rate Cap
Counterparty” means ABRCF’s counterparty under a Series 2008-1
Interest Rate Cap.

    

    “JPMorgan Chase” is
defined in the recitals hereto.

    

    “Lease Deficit
Disbursement” means an amount drawn under a Series 2008-1 Letter of
Credit pursuant to a Certificate of Lease Deficit Demand.

    

    “LIBO Rate” means,
with respect to each day during each Eurodollar Period pertain­ing to a
Eurodollar Tranche, the rate appearing on Reuters Screen LIBOR01 Page (or on any
successor or substitute page of such service, providing rate quotations
compar­able to those currently provided on such page of such service, as
determined by the Administrative Agent from time to time in accordance with its
customary practices for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market) at approximately
11:00 a.m. (London time) on the second London Banking Day prior to the
commencement of such Eurodollar Period, as the rate for dollar deposits with a
maturity comparable to the Eurodollar Period applicable to such Eurodollar
Tranche.

    

    “LOC Pro Rata Share”
means, with respect to any Series 2008-1 Letter of Credit Provider as of any
date, the fraction (expressed as a percentage) obtained by dividing (A) the
available amount under such Series 2008-1 Letter of Credit Provider’s Series
2008-1 Letter of Credit as of such date by (B) an amount equal to the aggregate
available amount under all Series 2008-1 Letters of Credit as of such date;
provided that
only for purposes of calculating the LOC Pro Rata Share with respect to any
Series 2008-1 Letter of Credit Provider as of any date, if such Series 2008-1
Letter of Credit Provider has not complied with its obligation to pay the
Trustee the amount of any draw under its Series 2008-1 Letter of Credit made
prior to such date, the avail­able amount under such Series 2008-1 Letter of
Credit Provider’s Series 2008-1 Letter of Credit as of such date shall be
treated as reduced (for calculation purposes only) by the amount of such unpaid
demand and shall not be reinstated for purposes of such calculation unless and
until the date as of which such Series 2008-1 Letter of Credit Provider has paid
such amount to the Trustee and been reimbursed by the Lessee or the applicable
Demand Note Issuer, as the case may be, for such amount (provided that the
foregoing calculation shall not in any manner reduce the undersigned’s actual
liability in respect of any failure to pay any demand under its Series 2008-1
Letter of Credit).

    

    
      
        
           

        

        
          10

          
            

          

        

        
           

        

      

    

    

    “London Banking Day”
means any business day on which dealings in deposits in United States dollars
are transacted in the London interbank market.

    

    “Market Value Average”
means, as of any day, the percentage equivalent of a fraction, the numerator of
which is the average of the Selected Fleet Market Value as of the preceding
Determination Date and the two Determination Dates precedent thereto and the
denomin­ator of which is the sum of (a) the average of the aggregate Net
Book Value of all Non-Program Vehicles (excluding (i) any Unaccepted
Program Vehicles, (ii) any Excluded Redesignated Vehicles and (iii) any
other Non-Program Vehicles that are subject to a Manufacturer Program with an
Eligible Non-Program Manufacturer with respect to which no Manufacturer Event of
Default has occurred and is continuing) and (b) the average of the aggregate
Adjusted Net Book Value of all Adjusted Program Vehicles, in the case of each of
clause (a) and (b) leased under the AESOP I Operating Lease and the Finance
Lease as of the preceding Determination Date and the two Determination Dates
precedent thereto.

    

    “Match Funding CP Conduit
Purchaser” means each CP Conduit Purchaser that is designated as such on
Schedule I or that, after the Series 2008-1 Closing Date, notifies ABRCF and the
Administrative Agent in accordance with Section 2.7(d) in writing that it is
funding its CP Conduit Funded Amount with Commercial Paper issued by it, or for
its benefit, in specified CP Tranches selected in accordance with Sections
2.7(b) and (c) and that, in each case, has not subsequently notified ABRCF and
the Administrative Agent in writing that ABRCF will no longer be permit­ted
to select CP Tranches in accordance with Sections 2.7(b) and (c) in respect of
the CP Conduit Funded Amount with respect to such CP Conduit
Purchaser.

    

    “Maximum Purchaser Group
Invested Amount” means, with respect to any Purchaser Group, the amount
set forth opposite the name of the CP Conduit Purchaser included in such
Purchaser Group on Schedule I, as such amount may be increased or reduced
from time to time as provided in Section 2.6.  The Maximum Purchaser
Group Invested Amount with respect to each Non-Extending Purchaser Group shall
be reduced to zero on the Scheduled Expiry Date with respect to such Purchaser
Group.

    

    “Monthly Funding
Costs” means, with respect to each Series 2008-1 Interest Period and any
Purchaser Group, the sum of:

    

    
      
        
           

        

        
          11

          
            

          

        

        
           

        

      

    

    

    (a)           for
each day during such Series 2008-1 Interest Period, (i) with respect to a Match
Funding CP Conduit Purchaser, the aggregate amount of Discount accruing on all
outstanding Commercial Paper issued by, or for the benefit of, such Match
Funding CP Conduit Purchaser to fund the CP Conduit Funded Amount with respect
to such Match Funding CP Conduit Purchaser on such day or (ii) with respect to a
Pooled Funding CP Conduit Purchaser, the aggregate amount of Discount accruing
on or otherwise in respect of the Commercial Paper issued by, or for the benefit
of, such Pooled Funding CP Conduit Purchaser allocated, in whole or in part, by
the Funding Agent with respect to such Pooled Funding CP Conduit Purchaser, to
fund the purchase or maintenance of the CP Conduit Funded Amount with respect to
such Pooled Funding CP Conduit Purchaser; plus

    

    (b)           for
each day during such Series 2008-1 Interest Period, the sum of:

    

    (i)         
  the product of (A) the portion of the APA Bank Funded Amount with
respect to such Purchaser Group allocated to the Floating Tranche with respect
to such Purchaser Group on such day times (B) the Alternate Base
Rate plus the
Applicable Margin on such day, divided by (C) 365 (or 366,
as the case may be) plus

    

    (ii)           the
product of (A) the portion of the APA Bank Funded Amount with respect to such
Purchaser Group allocated to Eurodollar Tranches with respect to such Purchaser
Group on such day times
(B) the weighted average Adjusted LIBO Rate with respect to such
Eurodollar Tranches plus
the Applicable Margin on such day in effect with respect thereto divided by (C) 360; plus

    

    (c)           for
each day during such Series 2008-1 Interest Period, the product of (A) the CP
Conduit Funded Amount with respect to such Purchaser Group on such day times (B) the Program Fee
Rate on such day divided
by (C) 360.

    

    “Monthly Total Principal
Allocation” means for any Related Month the sum of all Series 2008-1
Principal Allocations with respect to such Related Month.

    

    “Moody’s” means
Moody’s Investors Service, Inc.

    

    “Moody’s Excluded
Manufacturer Receivable Specified Percentage” means, as of any date of
determination, with respect to each Moody’s Non-Investment Grade Manufacturer as
of such date, the percentage (not to exceed 100%) most recently specified in
writing by Moody’s to ABRCF and the Trustee and consented to by the Requisite
Noteholders with respect to such Moody’s Non-Investment Grade Manufacturer;
provided, however, that as of
the A&R Effective Date the Moody’s Excluded Manufacturer Receivable
Specified Percentage for each Moody’s Non-Investment Grade Manufacturer shall be
100%; provided
further that
the initial Moody’s Excluded Manufacturer Receivable Specified Percentage with
respect to any Manufacturer that becomes a Moody’s Non-Investment Grade
Manufacturer after the A&R Effective Date shall be 100%.

    

    
      
        
           

        

        
          12

          
            

          

        

        
           

        

      

    

    

    “Moody’s Excluded Receivable
Amount” means, as of any date of determination, the sum of the following
amounts with respect to each Moody’s Non-Investment Grade Manufacturer as of
such date:  the product of (i) to the extent such amounts are included
in the calculation of AESOP I Operating Lease Loan Agreement Borrowing Base as
of such date, all amounts receivable, as of such date, by AESOP Leasing or the
Intermediary from such Moody’s Non-Investment Grade Manufacturer and (ii) the
Moody’s Excluded Manufacturer Receivable Specified Percentage for such Moody’s
Non-Investment Grade Manufacturer as of such date.

    

    “Moody’s Non-Investment Grade
Manufacturer” means, as of any date of determination, any Manufacturer
that (i) is not a Bankrupt Manufacturer and (ii) does not have a long-term
senior unsecured debt rating of at least “Baa3” from Moody’s; provided that any
Manufacturer whose long-term senior unsecured debt rating is downgraded from at
least “Baa3” to below “Baa3” by Moody’s after the A&R Effective Date shall
not be deemed a Moody’s Non-Investment Grade Manufacturer until the thirtieth
(30th)
calendar day following such downgrade.

    

    “Non-Extending Purchaser
Group” means any Purchaser Group who shall not have agreed to an
extension of its Scheduled Expiry Date pursuant to Section 2.6(b).

    

    “Optional Termination
Date” is defined in Section 2.5(b).

    

    “Optional Termination
Notice” is defined in Section 2.5(b).

    

    “Other
Taxes”  means any and all current or future stamp or
documentary taxes or other excise or property taxes, charges or similar levies
arising from any payment made under this Supplement, the Base Indenture, or any
Related Documents or from the execution, delivery or enforcement of, or
otherwise with respect to, this Supplement, the Base Indenture or any Related
Document.

    

    “Outstanding” means,
with respect to the Series 2008-1  Notes, the Series 2008-1 Invested
Amount shall not have been reduced to zero and all accrued interest and other
amounts owing on the Series 2008-1 Notes and to the Administrative Agent, the
Funding Agents, the CP Conduit Purchasers and the APA Banks hereunder shall not
have been paid in full.

    

    “Participants” is
defined in Section 11.1(d).

    

    “Past Due Rent
Payment” is defined in Section 3.2(f).

    

    “Permitted
Investments” means negotiable instruments or securities maturing on or
before the Distribution Date next occurring after the investment therein,
payable in Dollars, issued by an entity organized under the laws of the United
States of America and repre­sented by instruments in bearer or registered or
in book-entry form which evidence (i) obligations the full and timely payment of
which are to be made by or is fully guaranteed by the United States of America
other than financial contracts whose value depends on the values or indices of
asset values; (ii) demand deposits of, time deposits in, or certificates of
deposit issued by, any depositary institution or trust company incorporated
under the laws of the United States of America or any state thereof whose
short-term debt is rated “P-1” by Moody’s and “A-1” or higher by Standard &
Poor’s and subject to supervision and examination by Federal or state banking or
depositary institution authorities; provided, however, that at the
earlier of (x) the time of the investment and (y) the time of the contractual
commitment to invest therein, the certificates of deposit or short-term
deposits, if any, or long-term unsecured debt obligations (other than such
obligation whose rating is based on collateral or on the credit of a Person
other than such institution or trust company) of such depositary institution or
trust company shall have a credit rating from Standard & Poor’s of “A-1+”,
in the case of certificates of deposit or short-term deposits, or a rating from
Standard & Poor’s not lower than “AA”, in the case of long-term unsecured
debt obligations; (iii) commercial paper having, at the earlier of (x) the time
of the investment and (y) the time of the contractual commitment to invest
therein, a rating from Standard & Poor’s of “A-1+” and a rating from Moody’s
of “P-1”; (iv) bankers’
acceptances issued by any depositary institution or trust company described in
clause (ii)
above; (v) investments in money market funds (x) rated “AAm” by Standard &
Poor’s or otherwise approved in writing by Standard & Poor’s and (y) rated
“Aaa” by Moody’s or otherwise approved in writing by Moody’s; (vi) Eurodollar
time deposits having a credit rating from Standard & Poor’s of “A-1+” and a
credit rating  from Moody’s of at least “A3” or “P-1”; (vii) repurchase agreements
involving any of the Permitted Investments described in clauses (i) and
(vi) above and
the certificates of deposit described in clause (ii) above
which are entered into with a depository institution or trust company, having a
commercial paper or short-term certificate of deposit rating of “A-1+” by
Standard & Poor’s and “P-1” by Moody’s or which otherwise is approved as to
collateralization by the Rating Agencies; and (viii) any other instruments or
securities, if the Rating Agencies confirm in writing that the investment in
such instruments or securities will not adversely affect any rating with respect
to the Series 2008-1 Notes and, so long as Standard & Poor’s rates the
Commercial Paper issued by any CP Conduit Purchaser, Standard & Poor’s
confirms in writing that the investment in such instruments or securities will
not adversely affect any rating of the Commercial Paper issued by any CP Conduit
Purchaser whose Commercial Paper is rated by Standard & Poor’s at such
time.

    

    
      
        
           

        

        
          13

          
            

          

        

        
           

        

      

    

    

    “Pooled Funding CP Conduit
Purchaser” means each CP Conduit Purchaser that is not a Match Funding CP
Conduit Purchaser.

    

    “Preference Amount”
means any amount previously distributed to a member or members of a Purchaser
Group on or relating to a Series 2008-1 Note that is recoverable or that has
been recovered as a voidable preference by the trustee in a bankruptcy
proceeding of a Demand Note Issuer pursuant to the Bankruptcy Code in accordance
with a final nonappealable order of a court having competent
jurisdiction.

    

    “Pre-Preference Period Demand
Note Payments” means, as of any date of deter­mination, the aggregate
amount of all proceeds of demands made on the Series 2008-1 Demand Notes
included in the Series 2008-1 Demand Note Payment Amount as of the Series 2008-1
Letter of Credit Termination Date that were paid by the Demand Note Issuers more
than one year before such date of determination; provided, however, that if an Event of
Bankruptcy (or the occurrence of an event described in clause (a) of the
definition thereof, without the lapse of a period of 60 consecutive days) with
respect to a Demand Note Issuer occurs during such one-year period, (x) the
Pre-Preference Period Demand Note Payments as of any date during the period from
and including the date of the occurrence of such Event of Bankruptcy to and
including the conclusion or dismissal of the proceedings giving rise to such
Event of Bankruptcy without contin­uing jurisdiction by the court in such proceedings shall
equal the Pre-Preference Period Demand Note Payments as of the date of such
occurrence and (y) the Pre-Preference Period Demand Note Payments as of any date
after the conclusion or dismissal of such proceedings shall equal the Series
2008-1 Demand Note Payment Amount as of the date of the conclusion or dismissal
of such proceedings.

    

    
      
        
           

        

        
          14

          
            

          

        

        
           

        

      

    

    

    “Prime Rate” means the
rate of interest per annum publicly announced from time to time by JPMorgan
Chase as its prime rate in effect at its principal office in New York
City.  Each change in the Prime Rate shall be effective from and
including the date such change is publicly announced as being
effective.

    

    “Principal Deficit
Amount” means, on any date of determination, the excess, if any, of (i)
the Series 2008-1 Invested Amount on such date (after giving effect to the
distribution of the Monthly Total Principal Allocation for the Related Month if
such date is a Distribution Date) over (ii) the sum of (a) the Series 2008-1
AESOP I Operating Lease Loan Agreement Borrowing Base and (b) the excess, if
any, of (1) the AESOP II Loan Agreement Borrowing Base over (2) the AESOP II
Moody’s Excluded Receivable Amount on such date.

    

    “Pro Rata Share”
means, with respect to any Purchaser Group, on any date, the ratio, expressed as
a percentage, which the Purchaser Group Invested Amount with respect to such
Purchaser Group bears to the Series 2008-1 Invested Amount on such
date.

    

    “Program Fee Rate” is
defined in the Fee Letter.

    

    “Program Support
Provider” means, with respect to any CP Conduit Purchaser, the APA Bank
with respect to such CP Conduit Purchaser and any other or additional Person now
or hereafter extending credit, or having a commitment to extend credit to or for
the account of, or to make purchases from, such CP Conduit Purchaser or issuing
a letter of credit, surety bond or other instrument to support any obligations
arising under or in connection with such CP Conduit Purchaser’s securitization
program.

    

    “Purchase Effective
Date” is defined in Section 2.6(d).

    

    “Purchaser Group”
means, collectively, a CP Conduit Purchaser and the APA Banks with respect to
such CP Conduit Purchaser.

    

    “Purchaser Group Addition
Date” is defined in Section 2.6(e).

    

    “Purchaser Group Increase
Amount” means, with respect to any Purchaser Group, for any Business Day,
such Purchaser Group’s Commitment Percentage of the Increase Amount, if any, on
such Business Day.

    

    “Purchaser Group Invested
Amount” means, with respect to any Purchaser Group, (a) when used with
respect to the Series 2008-1 Closing Date, such Purchaser Group’s Commitment
Percentage of the Series 2008-1 Initial Invested Amount and (b) when used with
respect to any other date, an amount equal to (i) the Purchaser Group Invested
Amount with respect to such Purchaser Group on the immedi­ately preceding
Business Day plus (ii) the
Purchaser Group Increase Amount with respect to such Purchaser Group on such
date minus
(iii) the amount of principal payments made to such Purchaser Group
pursuant to Section 3.5(f) on such date plus (iv) the amount
of principal payments recovered from such Purchaser Group by a trustee as a
preference payment in a bankruptcy proceeding of a Demand Note Issuer or
otherwise.

    

    
      
        
           

        

        
          15

          
            

          

        

        
           

        

      

    

    

    “Purchaser Group
Supplement” is defined in Section 11.1(e).

    

    “Qualified Interest Rate Cap
Counterparty” means a counterparty to a Series 2008-1 Interest Rate Cap
that is a bank, other financial institution or Person which has, or has all of
its obligations under its Series 2008-1 Interest Rate Cap guaranteed by a Person
that has, (i) a short-term senior unsecured debt, deposit, claims paying or
credit (as the case may be) rating of at least “A-1”, or if such bank, financial
institution or Person does not have a short-term senior, unsecured debt rating,
a long-term senior, unsecured debt, deposit, claims paying or credit (as the
case may be) rating of at least “A+”, in each case, from Standard & Poor’s
and (ii) a short-term senior, unsecured debt, deposit, claims paying or credit
(as the case may be) rating of “P-1”, or if such bank, financial institution or
Person does not have a short-term senior, unsecured debt rating, a long-term
senior, unsecured debt, deposit, claims paying or credit (as the case may be)
rating of at least “A1”, in each case, from Moody’s.

    

    “Record Date” means,
with respect to each Distribution Date, the immediately preceding Business
Day.

    

    “Related Additional APA
Banks” is defined in Section 2.6(e).

    

    “Related Purchaser
Group” means, with respect to any Funding Agent, the CP Conduit Purchaser
identified next to such Funding Agent on Schedule I and each APA Bank identified
on Schedule I next to such CP Conduit Purchaser.

    

    “Replacement Credit
Agreement” means any credit agreement or similar facility entered into by
Avis Budget Holdings, LLC, ABCR and/or any affiliate of either entity, that
refinances or replaces the Credit Agreement without giving effect to any
amendment thereto that is not approved in writing by the Requisite
Noteholders.

    

    “Requisite
Noteholders” means Purchaser Groups having Commitment Percentages
aggregating more than 50%.

    

    “Scheduled Expiry
Date” means, with respect to any Purchaser Group, October 28, 2010, as
such date may be extended in accordance with Section 2.6(b).

    

     “Selected Fleet Market
Value” means, with respect to all Adjusted Program Vehicles and all
Non-Program Vehicles (excluding (i) any Unaccepted Program Vehicles, (ii) any
Excluded Redesignated Vehicles and (iii) any other Non-Program Vehicles that are
subject to a Manufacturer Program with an Eligible Non-Program Manufacturer with
respect to which no Manufacturer Event of Default has occurred and is
continuing) as of any date of determination, the sum of the respective Market
Values of each such Adjusted Program Vehicle and each such Non-Program Vehicle,
in each case subject to the AESOP I Operating Lease or the Finance Lease as of
such date.  For purposes of computing the Selected Fleet Market Value,
the “Market Value” of an Adjusted Program Vehicle or a Non-Program Vehicle means
the market value of such Vehicle as specified in the most recently published
NADA Guide for the model class and model year of such Vehicle based on the
average equipment and the average mileage of each Vehicle of such model class
and model year then leased under the AESOP I Operating Lease and the Finance
Lease; provided, that
if the NADA Guide is not being published or the NADA Guide is being published
but such Vehicle is not included therein, the Market Value of such Vehicle shall
be based on the market value specified in the most recently published Finance
Guide for the model class and model year of such Vehicle based on the average
equipment and the average mileage of each Vehicle of such model class and model
year then leased under the AESOP I Operating Lease or the Finance Lease; provided, further, that if the Finance
Guide is being published but such Vehicle is not included therein, the Market
Value of such Vehicle shall mean (x) in the case of an Adjusted Program Vehicle,
the Adjusted Net Book Value of such Adjusted Program Vehicle and (y) in the case
of a Non-Program Vehicle, the Net Book Value of such Non-Program Vehicle provided, further, that if the Finance
Guide is not being published, the Market Value of such Vehicle shall be based on
an independent third-party data source selected by the Administrator and
approved by each Rating Agency that is rating any Series of Notes at the request
of ABRCF based on the average equipment and average mileage of each Vehicle of
such model class and model year then leased under the AESOP I Operating Lease or
the Finance Lease; provided, further, that if no such
third-party data source or methodology shall have been so approved or any such
third-party data source or methodology is not available, the Market Value of
such Vehicle shall be equal to a reasonable estimate of the wholesale market
value of such Vehicle as determined by the Administrator, based on the Net Book
Value of such Vehicle and any other factors deemed relevant by the
Administrator.

    

    
      
        
           

        

        
          16

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Accrued
Interest Account” is defined in Section 3.1(b).

    

    “Series 2008-1 AESOP I
Operating Lease Loan Agreement Borrowing Base” means, as of any date of
deter­mination, the product of (a) the Series 2008-1 AESOP I Operating Lease
Vehicle Percentage as of such date and (b) the excess of (i) the AESOP I
Operating Lease Loan Agreement Borrowing Base as of such date over (ii) the
Moody’s Excluded Receivable Amount as of such date.

    

    “Series 2008-1 AESOP I
Operating Lease Vehicle Percentage” means, as of any date of
determination, a fraction, expressed as a percentage (which percentage shall
never exceed 100%), the numerator of which is the Series 2008-1 Required AESOP I
Operating Lease Vehicle Amount as of such date and the denomina­tor of which
is the sum of the Required AESOP I Operating Lease Vehicle Amounts for all
Series of Notes as of such date.

    

    “Series 2008-1 Agent”
is defined in the recitals hereto.

    

    “Series 2008-1 Amortization
Period” means the period beginning at the earliest to occur of (a) the
close of business on the Business Day immediately preceding the date on which
the Expiry Date with respect to each Purchaser Group shall have occurred and (b)
the close of business on the Optional Termination Date and ending upon the
earliest to occur of (i) the date on which the Series 2008-1 Notes are fully
paid, (ii) the termination of the Indenture and (iii) the Series 2008-1
Termination Date.

    

    “Series 2008-1 Available Cash
Collateral Account Amount” means, as of any date of determination, the
amount on deposit in the Series 2008-1 Cash Collateral Account (after giving
effect to any deposits thereto and withdrawals and releases therefrom on such
date).

    

    
      
        
           

        

        
          17

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Available
Reserve Account Amount” means, as of any date of determination, the
amount on deposit in the Series 2008-1 Reserve Account (after giving effect to
any deposits thereto and with­drawals and releases therefrom on such
date).

    

    “Series 2008-1 Cash
Collateral Account” is defined in Section 3.8(e).

    

    “Series 2008-1 Cash
Collateral Account Collateral” is defined in
Section 3.8(a).

    

    “Series 2008-1 Cash
Collateral Account Surplus” means, with respect to any Distribution Date,
the lesser of (a) the Series 2008-1 Available Cash Collateral Account Amount and
(b) the lesser of (A) the excess, if any, of the Series 2008-1 Liquidity Amount
(after giving effect to any with­drawal from the Series 2008-1 Reserve
Account on such Distribution Date) over the Series 2008-1 Required Liquidity
Amount on such Distribution Date and (B) the excess, if any, of the Series
2008-1 Enhancement Amount (after giving effect to any withdrawal from the Series
2008-1 Reserve Account on such Distribution Date) over the Series 2008-1
Required Enhancement Amount on such Distribution Date; provided, however, that, on any
date after the Series 2008-1 Letter of Credit Termination Date, the Series
2008-1 Cash Collateral Account Surplus shall mean the excess, if any, of (x) the
Series 2008-1 Available Cash Collateral Account Amount over (y) the Series
2008-1 Demand Note Payment Amount minus the Pre-Preference
Period Demand Note Payments as of such date.

    

    “Series 2008-1 Cash
Collateral Percentage” means, as of any date of determina­tion, the
percentage equivalent of a fraction, the numerator of which is the Series 2008-1
Available Cash Collateral Amount as of such date and the denominator of which is
the Series 2008-1 Letter of Credit Liquidity Amount as of such
date.

    

    “Series 2008-1 Closing
Date” is defined in Section 2.1(a).

    

    “Series 2008-1
Collateral” means the Collater­al, each Series 2008-1 Letter of
Credit, each Series 2008-1 Demand Note, the Series 2008-1 Interest Rate Cap
Collateral, the Series 2008-1 Distribution Account Collateral, the Series 2008-1
Cash Collateral Account Collateral and the Series 2008-1 Reserve Account
Collateral.

    

    “Series 2008-1 Collection
Account” is defined in Section 3.1(b).

    

    “Series 2008-1 Demand
Note” means each demand note made by a Demand Note Issuer, substantially
in the form of Exhibit
D as amended, modified or restated from time to time.

    

    “Series 2008-1 Demand Note
Payment Amount” means, as of the Series 2008-1 Letter of Credit
Termination Date, the aggregate amount of all proceeds of demands made on the
Series 2008-1 Demand Notes pursuant to Section 3.5(c)(iii) or 3.5(d)(ii) that
were deposited into the Series 2008-1 Distribution Account and paid to the
Series 2008-1 Noteholders during the one-year period ending on the Series 2008-1
Letter of Credit Termination Date; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecutive days)
with respect to a Demand Note Issuer shall have occurred during such one-year
period, the Series 2008-1 Demand Note Payment Amount as of the Series 2008-1
Letter of Credit Termination Date shall equal the Series 2008-1 Demand Note
Payment Amount as if it were calculated as of the date of such
occurrence.

    

    
      
        
           

        

        
          18

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Deposit
Date” is defined in Section 3.2.

    

    “Series 2008-1 Distribution
Account” is defined in Section 3.9(a).

    

    “Series 2008-1 Distribution
Account Collateral” is defined in Section 3.9(d).

    

    “Series 2008-1
Documents” means each of this Supplement, the Series 2008-1 Notes, the
Series 2008-1 Interest Rate Cap, the Fee Letter, the Series 2008-1 Demand Notes,
the Series 2008-1 Letter of Credit and any other related documents executed in
connection with an issuance of the Series 2008-1 Notes or activities related
thereto.

    

    “Series 2008-1 Eligible
Letter of Credit Provider” means a Person satisfactory to ABCR and the
Demand Note Issuers and having, at the time of the issuance of the related
Series 2008-1 Letter of Credit, a long-term senior unsecured debt, deposit,
claims paying or credit (as the case may be) rating of at least “A” from
Standard & Poor’s and a short-term senior unsecured debt, deposit, claims
paying or credit (as the case may be) rating of at least “A-1” from Standard
& Poor’s and a long-term senior unsecured debt, deposit, claims paying or
credit (as the case may be) rating of at least “A1” from Moody’s and a
short-term senior unsecured debt, deposit, claims paying or credit (as the case
may be) rating of at least “P-1” from Moody’s that is a commercial bank having
total assets in excess of $500,000,000; provided that if a
Person is not a Series 2008-1 Letter of Credit Provider (or a letter of credit
provider under the Supplement for any other Series of Notes), then such Person
shall not be a Series 2008-1 Eligible Letter of Credit Provider until ABCR has
provided 10 days’ prior notice to the Rating Agencies, Standard & Poor’s and
the Administrative Agent that such a Person has been proposed as a Series 2008-1
Letter of Credit Provider.

    

    “Series 2008-1
Enhancement” means the Series 2008-1 Cash Collateral Account Collateral,
the Series 2008-1 Letters of Credit, the Series 2008-1 Demand Notes, the Series
2008-1 Overcollateralization Amount and the Series 2008-1 Reserve Account
Amount.

    

    “Series 2008-1 Enhancement
Amount” means, as of any date of determination, the sum of (i) the Series
2008-1 Overcollateralization Amount as of such date, (ii) the Series 2008-1
Letter of Credit Amount as of such date, (iii) the Series 2008-1 Avail­able
Reserve Account Amount as of such date and (iv) the amount of cash and Permitted
Investments on deposit in the Series 2008-1 Collection Account (not including
amounts allocable to the Series 2008-1 Accrued Interest Account) and the
Series 2008-1 Excess Collection Account as of such date.

    

    “Series 2008-1 Enhancement
Deficiency” means, on any date of determination, the amount by which the
Series 2008-1 Enhancement Amount is less than the Series 2008-1 Required
Enhancement Amount as of such date.

    

    “Series 2008-1 Excess
Collection Account” is defined in Section 3.1(b).

    

    
      
        
           

        

        
          19

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Expected Final
Distribution Date” means the Distribution Date falling in the seventh
calendar month after the calendar month in which the Series 2008-1 Revolving
Period ends.

    

    “Series 2008-1 Incremental
Enhancement Amount” means, as of any date of determination, the sum
of:

    

    (i)      
     the greater of (x) the Series 2008-1 Percentage of
the excess, if any, of the Non-Program Vehicle Amount as of the immediately
preceding Business Day over the Series 2008-1 Maximum Non-Program Vehicle Amount
as of the immediately preceding Business Day and (y) the excess, if any, of (A)
the Series 2008-1 AESOP I Operating Lease Vehicle Percentage of the Net Book
Value of all Non-Program Vehicles (other than (i) Unaccepted Program Vehicles
and (ii) Vehicles subject to a Manufacturer Program with a Specified Eligible
Non-Program Manufacturer) leased under the AESOP I Operating Lease as of the
immediately preceding Business Day over (B) the Series 2008-1 Maximum
Non-Program Vehicle Percentage of the sum of (1) the Net Book Value of all
Vehicles leased under the AESOP II Operating Lease as of the immediately
preceding Business Day and (2) the Series 2008-1 AESOP I Operating Lease Vehicle
Percentage of the Net Book Value of all Vehicles leased under the AESOP I
Operating Lease as of the immediately preceding Business Day;

    

    (ii)           the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Mitsubishi and leased
under the Leases as of the immediately preceding Business Day over the Series
2008-1 Maximum Mitsubishi Amount as of the immediately preceding Business Day
and (y) the excess, if any, of (A) the sum of (1) the aggregate Net Book Value
of all Vehicles manufactured by Mitsubishi and leased under the AESOP II
Operating Lease as of the immediately preceding Business Day and (2) the Series
2008-1 AESOP I Operating Lease Vehicle Percentage of the Net Book Value of all
Vehicles manufactured by Mitsubishi and leased under the AESOP I Operating Lease
as of the immediately preceding Business Day over (B) 10% of the sum of (1) the
Net Book Value of all Vehicles leased under the AESOP II Operating Lease as of
the immediately preceding Business Day and (2) the Series 2008-1 AESOP I
Operating Lease Vehicle Percentage of the Net Book Value of all Vehicles leased
under the AESOP I Operating Lease as of the immediately preceding Business
Day;

    

    (iii)          the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Isuzu or Subaru,
individually, and leased under the Leases as of the immediately preceding
Business Day over the Series 2008-1 Maximum Individual Isuzu/Subaru Amount as of
the immediately preceding Business Day and (y) the excess, if any, of
(A) the sum of (1) the aggregate Net Book Value of all Vehicles
manufactured by Isuzu or Subaru, individually, and leased under the AESOP II
Operating Lease as of the immediately preceding Business Day and (2) the Series
2008-1 AESOP I Operating Lease Vehicle Percentage of the Net Book Value of all
Vehicles manufactured by Isuzu or Subaru, individually, and leased under the
AESOP I Operating Lease as of the immediately preceding Business Day over (B) 5%
of the sum of (1) the Net Book Value of all Vehicles leased under the AESOP II
Operating Lease as of the immediately preceding Business Day and (2) the Series
2008-1 AESOP I Operating Lease Vehicle Percentage of the Net Book Value of all
Vehicles leased under the AESOP I Operating Lease as of the immediately
preceding Business Day;

    

    
      
        
           

        

        
          20

          
            

          

        

        
           

        

      

    

    

    (iv)          the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Hyundai and leased
under the Leases as of the immediately preceding Business Day over the Series
2008-1 Maximum Hyundai Amount as of the immediately preceding Business Day and
(y) the excess, if any, of (A) the sum of (1) the aggregate Net Book Value
of all Vehicles manufactured by Hyundai and leased under the AESOP II Operating
Lease as of the immediately preceding Business Day and (2) the Series 2008-1
AESOP I Operating Lease Vehicle Percentage of the Net Book Value of all Vehicles
manufactured by Hyundai and leased under the AESOP I Operating Lease as of the
immediately preceding Business Day over (B) 20% of the sum of (1) the Net Book
Value of all Vehicles leased under the AESOP II Operating Lease as of the
immediately preceding Business Day and (2) the Series 2008-1 AESOP I Operating
Lease Vehicle Percentage of the Net Book Value of all Vehicles leased under the
AESOP I Operating Lease as of the immediately preceding Business
Day;

    

    (v)           the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Suzuki and leased under
the Leases as of the immediately preceding Business Day over the Series 2008-1
Maximum Suzuki Amount as of the immediately preceding Business Day and (y) the
excess, if any, of (A) the sum of (1) the aggregate Net Book Value of all
Vehicles manufactured by Suzuki and leased under the AESOP II Operating Lease as
of the immediately preceding Business Day and (2) the Series 2008-1 AESOP I
Operating Lease Vehicle Percentage of the Net Book Value of all Vehicles
manufactured by Suzuki and leased under the AESOP I Operating Lease as of the
immediately preceding Business Day over (B) 7.5% of the sum of (1) the Net Book
Value of all Vehicles leased under the AESOP II Operating Lease as of the
immediately preceding Business Day and (2) the Series 2008-1 AESOP I Operating
Lease Vehicle Percentage of the Net Book Value of all Vehicles leased under the
AESOP I Operating Lease as of the immediately preceding Business
Day;

    

    (vi)         
the greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
aggregate Net Book Value of all Vehicles manufactured by Kia and leased under
the Leases as of the immediately preceding Business Day over the Series 2008-1
Maximum Kia Amount as of the immediately preceding Business Day and (y) the
excess, if any, of (A) the sum of (1) the aggregate Net Book Value of all
Vehicles manufactured by Kia and leased under the AESOP II Operating Lease as of
the immediately preceding Business Day and (2) the Series 2008-1 AESOP I
Operating Lease Vehicle Percentage of the Net Book Value of all Vehicles
manufactured by Kia and leased under the AESOP I Operating Lease as of the
immediately preceding Business Day over (B) 10% of the sum of (1) the Net Book
Value of all Vehicles leased under the AESOP II Operating Lease as of the
immediately preceding Business Day and (2) the Series 2008-1 AESOP I Operating
Lease Vehicle Percentage of the Net Book Value of all Vehicles leased under the
AESOP I Operating Lease as of the immediately preceding Business
Day;

      

      
        
           

        

        
          21

          
            

          

        

        
           

        

      
   

    (vii)         the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
Specified States Amount as of the immediately preceding Business Day over the
Series 2008-1 Maximum Specified States Amount as of the immediately preceding
Business Day and (y) the excess, if any, of (A) the sum of (1) the Net Book
Value of all Vehicles titled in the States of Ohio, Oklahoma and Nebraska and
leased under the AESOP II Operating Lease as of the immediately preceding
Business Day and (2) the Series 2008-1 AESOP I Operating Lease Vehicle
Percentage of the Net Book Value of all Vehicles titled in the States of Ohio,
Oklahoma and Nebraska and leased under the AESOP I Operating Lease as of the
immediately preceding Business Day over (B) 7.5% of the sum of (1) the Net Book
Value of all Vehicles leased under the AESOP II Operating Lease as of the
immediately preceding Business Day and (2) the Series 2008-1 AESOP I Operating
Lease Vehicle Percentage of the Net Book Value of all Vehicles leased under the
AESOP I Operating Lease as of the immediately preceding Business Day;
and

     

    (viii)        the
greater of (x) the Series 2008-1 Percentage of the excess, if any, of the
Non-Eligible Manufacturer Amount as of the immediately preceding Business Day
over the Series 2008-1 Maximum Non-Eligible Manufacturer Amount as of the
immediately preceding Business Day and (y) the excess, if any, of (A) the Series
2008-1 AESOP I Operating Lease Vehicle Percentage of the Net Book Value of all
Vehicles manufactured by Manufacturers other than Eligible Non-Program
Manufacturers and leased under the AESOP I Operating Lease as of the immediately
preceding Business Day over (B) 3% of the sum of (1) the Net Book Value of all
Vehicles leased under the AESOP II Operating Lease as of the immediately
preceding Business Day and (2) the Series 2008-1 AESOP I Operating Lease Vehicle
Percentage of the Net Book Value of all Vehicles leased under the AESOP I
Operating Lease as of the immediately preceding Business Day.

    

    “Series 2008-1 Initial
Invested Amount” is defined in Section 2.3(a).

    

    “Series 2008-1 Interest
Period” means a period commencing on and including a Distribution Date
and ending on and including the day preceding the next succeeding
Distribu­tion Date; provided, however, that the
initial Series 2008-1 Interest Period shall com­mence on and include the
Series 2008-1 Closing Date and end on and include March 19, 2008.

    

    “Series 2008-1 Interest Rate
Cap” has the meaning specified in Section 3.11(a).

    

    “Series 2008-1 Interest Rate
Cap Collateral” has the meaning specified in
Section 3.11(c).

    

    “Series 2008-1 Interest Rate
Cap Proceeds” means the amounts received by the Trustee from an Interest
Rate Cap Counterparty from time to time in respect of a Series 2008-1 Interest
Rate Cap (including amounts received from a guarantor or from
collateral).

    

    
      
        
           

        

        
          22

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Invested
Amount” means, on any date of determination, the sum of the Purchaser
Group Invested Amounts with respect to each of the Purchaser Groups on such
date.

    

    “Series 2008-1 Invested
Percentage” means as of any date of determination:

    

    (a)           when
used with respect to Principal Collections, the percentage equivalent (which
percent­age shall never exceed 100%) of a fraction the nu­merator of
which shall be equal to the sum of the Series 2008-1 Invested Amount and the
Series 2008-1 Over­collateralization Amount, determined during the Series
2008-1 Revolving Period as of the end of the immediately preceding Business Day,
or, during the Series 2008-1 Amortization Period, as of the end of the Series
2008-1 Revolving Period, and the denominator of which shall be the greater as of
the end of the immediately preceding Business Day of (I) the Aggregate Asset
Amount and (II) the sum of the numerators used to deter­mine (i) invested
percentages for allocations with respect to Principal Collections (for all
Series of Notes and all classes of such Series of Notes) and (ii)
overcollateralization amounts for alloca­tions with respect to Principal
Collections (for all Series of Notes that provide for credit enhancement in the
form of overcollateralization); and

    

    (b)           when
used with respect to Interest Collections, the percentage equivalent (which
percent­age shall never exceed 100%) of a fraction the nu­merator of
which shall be the Accrued Amounts with respect to the Series 2008-1 Notes on
such date of determina­tion, and the denominator of which shall be the
aggregate Accrued Amounts with respect to all Series of Notes on such date of
determination.

    

    “Series 2008-1 Lease Interest
Payment Deficit” means on any Distribution Date an amount equal to the
excess, if any, of (a) the aggregate amount of Interest Collections which
pursuant to Section 3.2(a), (b) or (c) would have been allocated to the Series
2008-1 Accrued Interest Account if all payments of Monthly Base Rent required to
have been made under the Leases from and excluding the preceding Distribution
Date to and including such Distribution Date were made in full over (b) the
aggregate amount of Interest Collections which pursuant to Section 3.2(a), (b)
or (c) have been allocated to the Series 2008-1 Accrued Interest Account
(excluding any amounts paid into the Series 2008-1 Accrued Interest Account
pursuant to the proviso in Sections 3.2(b)(ii) and 3.2(c)(ii)) from and
excluding the preceding Distribution Date to and including such Distribution
Date.

    

    “Series 2008-1 Lease Payment
Deficit” means either a Series 2008-1 Lease Interest Payment Deficit or a
Series 2008-1 Lease Principal Payment Deficit.

    

    “Series 2008-1 Lease
Principal Payment Carryover Deficit” means (a) for the initial
Distribution Date, zero and (b) for any other Distribution Date, the excess of
(x) the Series 2008-1 Lease Principal Payment Deficit, if any, on the preceding
Distribution Date over (y) the amount
deposited in the Distribution Account on such preceding Distribution Date
pursuant to Section 3.5(c) on account of such Series 2008-1 Lease Principal
Payment Deficit.

    

    
      
        
           

        

        
          23

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Lease
Principal Payment Deficit” means on any Distribution Date the sum of (a)
the Series 2008-1 Monthly Lease Principal Payment Deficit for such Distribution
Date and (b) the Series 2008-1 Lease Principal Payment Carryover Deficit for
such Distribution Date.

    

    “Series 2008-1 Letter of
Credit” means an irrevocable letter of credit, if any, substan­tially
in the form of Exhibit
E issued by a Series 2008-1 Eligible Letter of Credit Provider in favor
of the Trustee for the benefit of the Series 2008-1 Noteholders.

    

    “Series 2008-1 Letter of
Credit Amount” means, as of any date of determination, the lesser of (a)
the sum of (i) the aggregate amount available to be drawn on such date
under each Series 2008-1 Letter of Credit on which no draw has been made
pursuant to Section 3.8(c), as specified therein, and (ii) if the Series
2008-1 Cash Collateral Account has been established and funded pursuant to
Section 3.8, the Series 2008-1 Available Cash Collateral Account Amount on
such date and (b) the aggregate outstanding principal amount of the Series
2008-1 Demand Notes on such date.

    

    “Series 2008-1 Letter of
Credit Expiration Date” means, with respect to any Series 2008-1 Letter
of Credit, the expiration date set forth in such Series 2008-1 Letter of Credit,
as such date may be extended in accordance with the terms of such Series 2008-1
Letter of Credit.

    

    “Series 2008-1 Letter of
Credit Liquidity Amount” means, as of any date of determination, the sum
of (a) the aggregate amount available to be drawn on such date under each Series
2008-1 Letter of Credit on which no draw has been made pursuant to Section
3.8(c), as specified therein, and (b) if the Series 2008-1 Cash Collateral
Account has been established and funded pursuant to Section 3.8, the Series
2008-1 Available Cash Collateral Account Amount on such date.

    

    “Series 2008-1 Letter of
Credit Provider” means the issuer of a Series 2008-1 Letter of
Credit.

    

    “Series 2008-1 Letter of
Credit Termination Date” means the first to occur of (a) the date on
which the Series 2008-1 Notes are fully paid and (b) the Series 2008-1
Termination Date.

    

    “Series 2008-1 Limited
Liquidation Event of Default” means, so long as such event or condition
contin­ues, any event or condition of the type specified in clauses (a)
through (i) of Article IV; provided, however, that any
event or condition of the type specified in clauses (a) through (i) of Article
IV shall not constitute a Series 2008-1 Limited Liquidation Event of Default if
the Trustee shall have received the written consent of each of the Series 2008-1
Noteholders waiv­ing the occurrence of such Series 2008-1 Limited
Liquidation Event of Default.

    

    “Series 2008-1 Liquidity
Amount” means, as of any date of determination, the sum of (a) the Series
2008-1 Letter of Credit Liquidity Amount on such date and (b) the Series 2008-1
Available Reserve Account Amount on such date.

    

    
      
        
           

        

        
          24

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Maximum
Amount” means any of the Series 2008-1 Maximum Manufacturer Amounts, the
Series 2008-1 Maximum Non-Eligible Manufacturer Amount, the Series 2008-1
Maximum Non-Program Vehicle Amount or the Series 2008-1 Maximum Specified States
Amount.

    

    “Series 2008-1 Maximum Hyundai
Amount” means, as of any day, an amount equal to 20% of the aggregate Net
Book Value of all Vehicles leased under the Leases on such day.

    

    “Series 2008-1 Maximum
Individual Isuzu/Subaru Amount” means, as of any day, with respect to
Isuzu or Subaru individually, an amount equal to 5% of the aggregate Net Book
Value of all Vehicles leased under the Leases on such day.

    

    “Series 2008-1 Maximum
Invested Amount” means, on any date of determination, the sum of the
Maximum Purchaser Group Invested Amounts with respect to each of the Purchaser
Groups on such date.  The Series 2008-1 Maximum Invested Amount shall
be reduced by the Maximum Purchaser Group Invested Amount of each Non-Extending
Purchaser Group on the Scheduled Expiry Date with respect to such Purchaser
Group.

    

    “Series 2008-1 Maximum Kia
Amount” means, as of any day, an amount equal to 10% of the aggregate Net
Book Value of all Vehicles leased under the Leases on such day.

    

    “Series 2008-1 Maximum
Manufacturer Amount” means, as of any day, any of the Series 2008-1
Maximum Mitsubishi Amount, the Series 2008-1 Maximum Individual Isuzu/Subaru
Amount, the Series 2008-1 Maximum Hyundai Amount, the Series 2008-1 Maximum Kia
Amount or the Series 2008-1 Maximum Suzuki Amount.

    

    “Series 2008-1 Maximum
Mitsubishi Amount” means, as of any day, an amount equal to 10% of the
aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

    

    “Series 2008-1 Maximum
Non-Eligible Manufactur­er Amount” means, as of any day, an amount
equal to 3% of the aggregate Net Book Value of all Vehicles leased under the
Leases on such day.

    

    “Series 2008-1 Maximum
Non-Program Vehicle Amount” means, as of any day, an amount equal to the
Series 2008-1 Maximum Non-Program Vehicle Percentage of the aggregate Net Book
Value of all Vehicles leased under the Leases on such day.

    

    “Series 2008-1 Maximum
Non-Program Vehicle Percentage” means, as of any date of determination,
the sum of (a) 85% and (b) a fraction, expressed as a percentage, the numerator
of which is the aggregate Net Book Value of all Redesignated Vehicles
manufactured by a Bankrupt Manufacturer or a Manufacturer with respect to which
a Manufacturer Event of Default has occurred, and in each case leased under the
AESOP I Operating Lease or the Finance Lease as of such date, and the
denominator of which is the aggregate Net Book Value of all Vehicles leased
under the Leases as of such date.

    

    
      
        
           

        

        
          25

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Maximum
Specified States Amount” means, as of any day, an amount equal to 7.5% of
the aggregate Net Book Value of all Vehicles leased under the Leases on such
day.

    

    “Series 2008-1 Maximum Suzuki
Amount” means, as of any day, an amount equal to 7.5% of the aggregate
Net Book Value of all Vehicles leased under the Leases on such day.

    

    “Series 2008-1 Monthly
Interest” means, with respect to any Series 2008-1 Interest Period, an
amount equal to the product of (a) the average daily Series 2008-1 Invested
Amount during such Series 2008-1 Interest Period, (b) the Series 2008-1 Note
Rate for such Series 2008-1 Interest Period and (c) the number of days in such
Series 2008-1 Interest Rate Period divided by 360.

    

    “Series 2008-1 Monthly Lease
Principal Payment Deficit” means on any Distribution Date an amount equal
to the excess, if any, of (a) the aggregate amount of Principal Collections
which pursuant to Section 3.2(a), (b) or (c) would have been allocated to the
Series 2008-1 Collection Account if all payments required to have been made
under the Leases from and excluding the preceding Distribution Date to and
including such Distribution Date were made in full over (b) the aggregate amount
of Principal Collections which pursuant to Section 3.2(a), (b) or (c) have been
allocated to the Series 2008-1 Collection Account (without giving effect to any
amounts paid into the Series 2008-1 Accrued Interest Account pursuant to the
proviso in Sections 3.2(b)(ii) and/or 3.2(c)(ii)) from and excluding the
preceding Distribution Date to and including such Distribution
Date.

    

    “Series 2008-1 Moody’s
Highest Enhanced Vehicle Percentage” means, as of any date
of determination, a fraction, expressed as a percentage, (a) the numerator of
which is the sum of (i) the aggregate Net Book Value of all Vehicles leased
under the AESOP I Operating Lease that are either not subject to a Manufacturer
Program (including by reason of rejection in a bankruptcy or repudiation by the
Manufacturer) or not eligible for repurchase under a Manufacturer Program as of
such date and (ii) the aggregate Net Book Value of all Vehicles leased under the
AESOP II Operating Lease that are either not subject to a Manufacturer Program
(including by reason of rejection in a bankruptcy or repudiation by the
Manufacturer) or not eligible for repurchase under a Manufacturer Program as of
such date and (b) the denominator of which is the sum of (i) the aggregate Net
Book Value of all Vehicles leased under the AESOP I Operating Lease as of such
date and (ii) the aggregate Net Book Value of all Vehicles leased under the
AESOP II Operating Lease as of such date.

    

    “Series 2008-1 Moody’s
Highest Enhancement Rate” means, as of any date of determination, the
greater of (a) 56.25% and (b) the sum of (i) 56.25% and (ii) the highest, for
any calendar month within the preceding twelve calendar months, of the greater
of (x) an amount (not less than zero) equal to 100% minus the Measurement
Month Average for the immediately preceding Measurement Month and (y) an amount
(not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which has not yet
occurred).

    

    
      
        
           

        

        
          26

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Moody’s
Intermediate Enhanced Vehicle Percentage” means, as of any date of
determination, 100% minus the sum of (a)
the Series 2008-1 Moody’s Lowest Enhanced Vehicle Percentage and (b) the Series
2008-1 Moody’s Highest Enhanced Vehicle Percentage.

    

    “Series 2008-1 Moody’s
Intermediate Enhancement Rate” means, as of any date of determination,
56.25%.

    

    “Series 2008-1 Moody’s Lowest
Enhanced Vehicle Percentage” means, as of any date of determination, a
fraction, expressed as a percentage, (a) the numerator of which is the sum,
without duplication, of (1) the sum of (A) the aggregate Net Book Value of all
Program Vehicles leased under the AESOP I Operating Lease that are manufactured
by Eligible Program Manufacturers having long-term senior unsecured debt ratings
of “Baa2” or higher from Moody’s as of such date and (B) the aggregate Net Book
Value of all Program Vehicles leased under the AESOP II Operating Lease that are
manufactured by Eligible Program Manufacturers having long-term senior unsecured
debt ratings of “Baa2” or higher from Moody’s as of such date, (2) so long as
any Eligible Non-Program Manufacturer has a long-term senior unsecured debt
rating of “Baa2” or higher from Moody’s and no Manufacturer Event of Default has
occurred and is continuing with respect to such Eligible Non-Program
Manufacturer, the aggregate Net Book Value of all Non-Program Vehicles leased
under the AESOP I Operating Lease manufactured by each such Eligible Non-Program
Manufacturer that are subject to a Manufacturer Program and remain eligible for
repurchase thereunder as of such date and (3) the lesser of (A) the sum of (x)
if as of such date any Eligible Program Manufacturer has a long-term senior
unsecured debt rating of “Baa3” from Moody’s, the sum of (I) the aggregate Net
Book Value of all Program Vehicles leased under the AESOP I Operating Lease
manufactured by each such Eligible Program Manufacturer as of such date and (II)
the aggregate Net Book Value of all Program Vehicles leased under the AESOP II
Operating Lease manufactured by each such Eligible Program Manufacturer as of
such date and (y) if as of such date any Eligible Non-Program Manufacturer has a
long-term senior unsecured debt rating of “Baa3” from Moody’s and no
Manufacturer Event of Default has occurred and is continuing with respect to
such Eligible Non-Program Manufacturer, the aggregate Net Book Value of all
Non-Program Vehicles leased under the AESOP I Operating Lease manufactured by
each such Eligible Non-Program Manufacturer that are subject to a Manufacturer
Program and remain eligible for repurchase thereunder as of such date and (B)
10% of the sum of (I) the aggregate Net Book Value of all Vehicles leased under
the AESOP I Operating Lease as of such date and (II) the aggregate Net Book
Value of all Vehicles leased under the AESOP II Operating Lease as of such date
and (b) the denominator of which is the sum of (1) the aggregate Net Book Value
of all Vehicles leased under the AESOP I Operating Lease as of such date and (2)
the aggregate Net Book Value of all Vehicles leased under the AESOP II Operating
Lease as of such date.

    

    “Series 2008-1 Moody’s Lowest
Enhancement Rate” means, as of any date of determination,
25.00%.

    

    “Series 2008-1 Moody’s
Required Enhancement Percentage” means, as of any date of determination,
the greater of (a) 50.0% and (b) the sum of (i) the product of (A) the Series
2008-1 Moody’s Lowest Enhancement Rate and (B) the Series 2008-1 Moody’s Lowest
Enhanced Vehicle Percentage as of such date, (ii) the product of (A) the Series
2008-1 Moody’s Intermediate Enhancement Rate as of such date and (B) the Series
2008-1 Moody’s Intermediate Enhanced Vehicle Percentage as of such date, and
(iii) the product of (A) the Series 2008-1 Moody’s Highest Enhancement Rate as
of such date and (B) the Series 2008-1 Moody’s Highest Enhanced Vehicle
Percentage as of such date.

    

    
      
        
           

        

        
          27

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Note”
means any one of the Series 2008-1 Variable Funding Rental Car Asset Backed
Notes, executed by ABRCF authenticated and delivered by or on behalf of the
Trustee, substantially in the form of Exhibit
A.

    

    “Series 2008-1 Note
Rate” means for any Series 2008-1 Interest Period, the interest rate
equal to the product of (a) the percentage equivalent of a fraction, the
numerator of which is equal to the sum of the Monthly Funding Costs with respect
to each Purchaser Group for such Series 2008-1 Interest Period and the
denominator of which is equal to the average daily Series 2008-1 Invested Amount
during such Series 2008-1 Interest Period and (b) a fraction, the
numer­a­tor of which is 360 and the denominator of which is the number
of days in such Series 2008-1 Interest Period; provided, however, that the
Series 2008-1 Note Rate will in no event be higher than the maximum rate
permitted by applicable law.

    

    “Series 2008-1
Noteholder” means a Person in whose name a Series 2008-1 Note is
registered in the Note Register.

    

    “Series 2008-1
Overcollateralization Amount” means (i) as of any date on which no AESOP
I Operating Lease Vehicle Deficiency exists, the Series 2008-1 Required
Over­collaterali­zation Amount as of such date and (ii) as of any date
on which an AESOP I Operating Lease Vehicle Deficiency exists, the excess, if
any, of (x) the sum of (a) the Series 2008-1 AESOP I Operating Lease Loan
Agreement Borrowing Base and (b) the excess, if any, of (1) the AESOP II Loan
Agreement Borrowing Base over (2) the AESOP II Moody’s Excluded Receivable
Amount as of such date over (y) the Series 2008-1 Invested Amount as of such
date.

    

    “Series 2008-1 Past Due Rent
Payment” is defined in Section 3.2(f).

    

    “Series 2008-1
Percentage” means, as of any date of determination, a fraction, expressed
as a percentage, the numerator of which is the Series 2008-1 Invested Amount as
of such date and the denominator of which is the sum of the Invested Amount of
each Series of Notes outstanding as of such date.

    

    “Series 2008-1 Principal
Allocation” is defined in Section 3.2(a)(ii).

    

    “Series 2008-1 Reimbursement
Agreement” means any and each agreement provid­ing for the
reimbursement of a Series 2008-1 Letter of Credit Provider for draws under its
Series 2008-1 Letter of Credit as the same may be amended, supplemented,
restated or otherwise modified from time to time.

    

    “Series 2008-1 Required AESOP
I Operating Lease Vehicle Amount” means, as of any date of determination,
the excess, if any, of (x) the sum of the Series 2008-1 Required
Overcollateralization Amount and the Series 2008-1 Invested Amount as of such
date over (y) the excess, if any, of (i) the AESOP II Loan Agreement Borrowing
Base as of such date over (ii) the AESOP II Moody’s Excluded Receivable
Amount.

    

    
      
        
           

        

        
          28

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Required
Enhancement Amount” means, as of any date of determination, the sum of
(i) the
product of (x) the Series 2008-1 Moody’s Required Enhancement Percentage as of
such date and (y) the Series 2008-1 Invested Amount as of such date and (ii) the
Series 2008-1 Incremental Enhancement Amount as of such date.

    

    “Series 2008-1 Required
Liquidity Amount” means, with respect to any Distribution Date, an amount
equal to 8.75% of the Series 2008-1 Invested Amount on such Distribution Date
(after giving effect to any payments of principal to be made on the Series
2008-1 Notes on such Distribution Date).

    

    “Series 2008-1 Required
Overcollateralization Amount” means, as of any date of determination, the
excess, if any, of the Series 2008-1 Required Enhancement Amount over the sum of
(i) the Series 2008-1 Letter of Credit Amount as of such date, (ii) the Series
2008-1 Available Reserve Account Amount on such date and (iii) the amount of
cash and Permitted Investments on deposit in the Series 2008-1 Collection
Account (not including amounts allocable to the Series 2008-1 Accrued Interest
Account) and the Series 2008-1 Excess Collection Account on such
date.

    

    “Series 2008-1 Required
Reserve Account Amount” means, with respect to any Distribution Date, an
amount equal to the sum of (a) the greater of (i) the excess, if any, of
the Series 2008-1 Required Liquidity Amount on such Distribution Date over the
Series 2008-1 Letter of Credit Liquidity Amount on such Distribution Date (after
giving effect to any payments of principal to be made on the Series 2008-1 Notes
on such Distribution Date) and (ii) the excess, if any, of the Series 2008-1
Required Enhancement Amount over the Series 2008-1 Enhancement Amount (excluding
therefrom the Series 2008-1 Available Reserve Account Amount and calculated
after giving effect to any payments of principal to be made on the Series 2008-1
Notes) on such Distribution Date and (b) the Demand Note Preference Payment
Amount.

    

    “Series 2008-1 Reserve
Account” is defined in Section 3.7(a).

    

    “Series 2008-1 Reserve
Account Collateral” is defined in Section 3.7(d).

    

    “Series 2008-1 Reserve
Account Surplus” means, with respect to any Distribution Date, the
excess, if any, of the Series 2008-1 Available Reserve Account Amount over the
Series 2008-1 Required Reserve Account Amount on such Distribution
Date.

    

    “Series 2008-1 Revolving
Period” means the period from and including, the Series 2008-1 Closing
Date to the com­mencement of the Series 2008-1 Amortization
Period.

    

    “Series 2008-1
Shortfall” is defined in Section 3.3(f).

    

    “Series 2008-1 Standard &
Poor’s Additional Enhancement Amount” means, as of any date of
determination, the excess, if any, of (x) the Series 2008-1 Standard &
Poor’s Enhancement Amount as of such date over (y) the Series 2008-1 Required
Enhancement Amount as of such date; provided, however, that as of
any date of determination following the occurrence and during the continuance of
a Liquidation Event of Default or a Series 2008-1 Limited Liquidation Event of
Default, the “Series 2008-1 Standard & Poor’s Additional Enhancement Amount”
shall equal the Series 2008-1 Standard & Poor’s Additional Enhancement
Amount as of the date immediately preceding the occurrence of such Liquidation
Event of Default or Series 2008-1 Limited Liquidation Event of
Default.

    

    
      
        
           

        

        
          29

          
            

          

        

        
           

        

      

    

    

    “Series 2008-1 Standard &
Poor’s Enhancement Amount” means, as of any date of determination, the
sum of (i) the product of (x) the Series 2008-1 Standard & Poor’s
Enhancement Percentage as of such date and (y) the Series 2008-1 Invested Amount
as of such date, (ii) the Series 2008-1 Incremental Enhancement Amount, as of
such date, (iii) the excess, if any of (x) the Standard & Poor’s Excluded
Receivable Amount over (y) the Moody’s Excluded Receivable Amount as of such
date and (iv) the excess, if any of (x) the AESOP II Standard & Poor’s
Excluded Receivable Amount over (y) the AESOP II Moody’s Excluded Receivable
Amount as of such date.

    

    “Series 2008-1 Standard &
Poor’s Enhancement Percentage” means, as of any date of determination,
the greater of (a) 50.00% and (b) the sum of (i) 50.00% and (ii) the highest,
for any calendar month within the preceding twelve calendar months, of the
greater of (x) an amount (not less than zero) equal to 100% minus the Measurement
Month Average for the immediately preceding Measurement Month and (y) an amount
(not less than zero) equal to 100% minus the Market
Value Average as of the Determination Date within such calendar month (excluding
the Market Value Average for any Determination Date which has not yet
occurred).

    

    “Series 2008-1 Termination
Date” means the Distribution Date falling in the nineteenth calendar
month after the calendar month in which the Series 2008-1 Revolving Period
ends.

    

    “Series 2008-1 Unpaid Demand
Amount” means, with respect to any single draw pursuant to Section 3.5(c)
or (d) on the Series 2008-1 Letters of Credit, the aggregate amount drawn by the
Trustee on all Series 2008-1 Letters of Credit.

    

    “Standard &
Poor’s” means Standard & Poor’s Ratings Services, a division of The
McGraw-Hill Companies, Inc.

    

    “Standard & Poor’s
Excluded Manufacturer Receivable Specified Percentage” means, as of any
date of determination, with respect to each Standard & Poor’s Non-Investment
Grade Manufacturer as of such date, the percentage (not to exceed 100%) most
recently specified in writing by Standard & Poor’s to ABRCF and the Trustee
with respect to such Standard & Poor’s Non-Investment Grade Manufacturer;
provided, however, that as of
the A&R Effective Date the Standard & Poor’s Excluded Manufacturer
Receivable Specified Percentage for each Standard & Poor’s Non-Investment
Grade Manufacturer shall be 100%; provided further that the
initial Standard & Poor’s Excluded Manufacturer Receivable Specified
Percentage with respect to any Manufacturer that becomes a Standard & Poor’s
Non-Investment Grade Manufacturer after the A&R Effective Date shall be
100%.

    

    “Standard & Poor’s
Excluded Receivable Amount” means, as of any date of determination, the
sum of the following amounts with respect to each Standard & Poor’s
Non-Investment Grade Manufacturer as of such date:  the product of (i)
to the extent such amounts are included in the calculation of AESOP I Operating
Lease Loan Agreement Borrowing Base as of such date, all amounts receivable, as
of such date, by AESOP Leasing or the Intermediary from such Standard &
Poor’s Non-Investment Grade Manufacturer and (ii) the Standard & Poor’s
Excluded Manufacturer Receivable Specified Percentage for such Standard &
Poor’s Non-Investment Grade Manufacturer as of such date.

    

    
      
        
           

        

        
          30

          
            

          

        

        
           

        

      

    

    

    “Standard & Poor’s
Non-Investment Grade Manufacturer” means, as of any date of
determination, any Manufacturer that (i) is not a Bankrupt Manufacturer and (ii)
does not have a long-term senior unsecured debt rating of at least “AA-” from
Standard & Poor’s; provided that any
Manufacturer whose long-term senior unsecured debt rating is downgraded from at
least “AA-” to below “AA-” by Standard & Poor’s after the A&R Effective
Date shall not be deemed a Standard & Poor’s Non-Investment Grade
Manufacturer until the thirtieth (30th)
calendar day following such downgrade.

    

    “Statutory Reserve
Rate” means a fraction (expressed as a decimal), the numer­ator of
which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or
supplemental reserves) expressed as a decimal (rounded up to the nearest 1/100th
of 1%) estab­lished by the Board with respect to the Adjusted LIBO Rate, for
eurocurrency funding (currently referred to as “Eurocurrency Liabilities” in
Regulation D of the Board).  Such reserve percent­ages shall
include those imposed pursuant to Regulation D.  Eurodollar Tranches
shall be deemed to constitute eurocurrency funding and to be subject to such
reserve requirements with­out benefit of or credit for proration, exemptions
or offsets that may be available from time to time under such Regulation D or
comparable regulation.  The Statutory Reserve Rate shall be adjusted
automatically on and as of the effective date of any change in the reserve
percentage.

    

    “Supplement” is
defined in the recitals hereto.

    

    “Taxes” means any and
all present or future taxes, levies, imposts, duties, deductions, charges or
withholdings imposed by any Governmental Authority.

    

    “Termination Date
Disbursement” means an amount drawn under a Series 2008-1 Letter of
Credit pursuant to a Certificate of Termination Date Demand.

    

    “Termination
Disbursement” means an amount drawn under a Series 2008-1 Letter of
Credit pursuant to a Certificate of Termination Demand.

    

    “Transfer Supplement”
is defined in Section 11.1(c).

    

    “Transferee” is
defined in Section 11.1(f).

    

    “Trustee” is defined
in the recitals hereto.

    

    “Unpaid Demand Note
Disbursement” means an amount drawn under a Series 2008-1 Letter of
Credit pursuant to a Certificate of Unpaid Demand Note Demand.

    

    “Voting Stock” means,
with respect to any Person, the common stock or membership interests of such
Person and any other security of, or ownership interest in, such Person having
ordinary voting power to elect a majority of the board of directors or a
majority of the managers (or other Persons serving similar functions) of such
Person.

    

    
      
        
           

        

        
          31

          
            

          

        

        
           

        

      

    

    

    “Waiver Event” means
the occurrence of the delivery of a Waiver Request and the subsequent waiver of
any Series 2008-1 Maximum Amount.

    

    “Waiver Request” is
defined in Article V.

    

    ARTICLE
II

    

    PURCHASE
AND SALE OF SERIES 2008-1 NOTES;

    INCREASES
AND DECREASES OF SERIES 2008-1 INVESTED AMOUNT

    

    Section
2.1.   Purchases
of the Series 2008-1 Notes

    

    (a)           Initial
Purchases.  Subject to the terms and conditions of this
Supplement, including delivery of notice in accor­dance with Section 2.3,
(i) each CP Conduit Purchaser may, in its sole discretion, purchase a Series
2008-1 Note in an amount equal to all or a portion of its Commitment Percentage
of the Series 2008-1 Initial Invested Amount on any Business Day during the
period from the Effective Date (the “Series 2008-1 Closing
Date”) to and including the Expiry Date with respect to such CP Conduit
Purchaser, and if such CP Conduit Purchaser shall have notified the
Administrative Agent and the Funding Agent with respect to such CP Conduit
Purchaser that it has elected not to fund a Series 2008-1 Note in an amount
equal to its Commit­ment Percentage of the Series 2008-1 Initial Invested
Amount on the Series 2008-1 Closing Date, each APA Bank with respect to such CP
Conduit Purchaser shall fund on the Series 2008-1 Closing Date its APA Bank
Percentage of that portion of such Series 2008-1 Note not to be funded by such
CP Conduit Purchaser and (ii) thereafter, (A) if a CP Conduit Purchaser shall
have purchased a Series 2008-1 Note on the Series 2008-1 Closing Date, such CP
Conduit Purchaser may, in its sole discretion, maintain its Series 2008-1 Note,
subject to increase or decrease during the period from the Series 2008-1 Closing
Date to and including the Expiry Date with respect to such CP Conduit Purchaser,
in accordance with the provisions of this Supplement and (B) the APA Banks with
respect to such CP Conduit Purchaser shall maintain their respective APA Bank
Percentages of the Series 2008-1 Note with respect to such Purchaser Group,
subject to increase or decrease during the period from the Series 2008-1 Closing
Date to and including the Expiry Date with respect to such CP Conduit Purchaser,
in accordance with the provisions of this Supplement.  Payments by
each CP Conduit Purchaser and/or the APA Banks with respect to such CP Conduit
Purchaser shall be made in immediately available funds on the Series 2008-1
Closing Date to the Funding Agent with respect to such CP Conduit Purchaser for
remittance to the Trustee for deposit into the Series 2008-1 Collection
Account.

    

    (b)           Maximum Purchaser Group
Invested Amounts.  Notwithstanding anything to the contrary
contained in this Supplement, at no time shall a Purchaser Group be required to
make the initial purchase of a Series 2008-1 Note or increase its Purchaser
Group Invested Amount if the Purchaser Group Invested Amount with respect to
such Purchaser Group, after giving effect to such purchase or increase, would
exceed the Maximum Purchaser Group Invested Amount with respect to such
Purchaser Group at such time.

    

    
      
        
           

        

        
          32

          
            

          

        

        
           

        

      

    

    

    (c)           Form of Series 2008-1
Notes.  The Series 2008-1 Notes shall be issued in fully
registered form without interest coupons, substantially in the form set forth in
Exhibit
A.

    

    Section
2.2.  Delivery

    

    (a)           On
the Series 2008-1 Closing Date, ABRCF shall sign and shall direct the
Trustee in writing pursuant to Section 2.2 of the Base Indenture to duly
authenticate, and the Trustee, upon receiving such direction, shall so
authenticate a Series 2008-1 Note in the name of the Funding Agent with respect
to each Purchaser Group in an amount equal to the Maximum Purchaser Group
Invested Amount with respect to such Purchaser Group and deliver such Series
2008-1 Note to such Funding Agent in accordance with such written
directions.

    

    (b)           The
Administrative Agent shall maintain a record of the actual Purchaser Group
Invested Amount outstanding with respect to each Purchaser Group and the actual
Series 2008-1 Invested Amount outstanding on any date of determination, which,
absent manifest error, shall constitute prima facie evidence of the
outstanding Purchaser Group Invested Amounts and outstanding Series 2008-1
Invested Amount from time to time.  Upon a written request from the
Trustee, the Administrative Agent shall provide in writing the identity of the
Purchaser Groups, the related Funding Agents, the Purchaser Group Invested
Amount for each Purchaser Group and the Commitment Percentage with respect to
such Purchaser Group to the Trustee.

    

    Section
2.3.  Procedure for Initial
Issuance and for Increasing the Series 2008-1 Invested
Amount

    

    (a)           Subject
to Section 2.3(c), (i) on the Series 2008-1 Closing Date, each CP
Conduit Purchaser may agree, in its sole discretion, to purchase, and the APA
Banks with respect to such CP Conduit Purchaser shall agree to purchase, a
Series 2008-1 Note in accordance with Section 2.1 and (ii) on any Business Day
during the period from the Effective Date to and including the Expiry Date with
respect to a CP Conduit Purchaser, such CP Conduit Purchaser may agree, in its
sole discretion, and each APA Bank with respect to such CP Conduit Purchaser
hereby agrees that the Purchaser Group Invested Amount with respect to such
Purchaser Group may be increased by an amount equal to its APA Bank Percentage
of the Commitment Percentage with respect to such Purchaser Group of the
Increase Amount (an “Increase”), upon the
request of ABRCF (each date on which an increase in the Series 2008-1 Invested
Amount occurs hereunder being herein referred to as the “Increase Date”
applicable to such Increase); provided, however, that ABRCF
shall have given the Administrative Agent (with a copy to the Trustee)
irrevocable written notice (effective upon receipt), by telecopy (receipt
confirmed), substantially in the form of Exhibit B, of such
request no later than 3:00 p.m. (New York City time) on the second Business
Day prior to the Series 2008-1 Closing Date or such Increase Date, as the case
may be.  Such notice shall state (x) the Series 2008-1 Closing Date or
the Increase Date, as the case may be, and (y) the initial invested amount
(the “Series 2008-1
Initial Invested Amount”) or the proposed amount of the increase in the
Series 2008-1 Invested Amount (an “Increase Amount”), as
the case may be.

    

    (b)           If
a CP Conduit Purchaser elects not to fund the full amount of its Commit­ment
Percentage of the Series 2008-1 Initial Invested Amount or a requested Increase,
such CP Conduit Purchaser shall notify the Administrative Agent and the Funding
Agent with respect to such CP Conduit Purchaser, and each APA Bank with respect
to such CP Conduit Purchaser shall fund its APA Bank Percentage of the portion
of the Commitment Percentage with respect to such Purchaser Group of the Series
2008-1 Initial Invested Amount or such Increase, as the case may be, not funded
by such CP Conduit Purchaser.

    

    
      
        
           

        

        
          33

          
            

          

        

        
           

        

      

    

    

    (c)           No
Purchaser Group shall be required to make the initial purchase of a Series
2008-1 Note on the Series 2008-1 Closing Date or to increase its Purchaser Group
Invested Amount on any Increase Date hereunder unless:

    

    (i)         
  such Purchaser Group’s Commitment Percentage of the Series 2008-1
Initial Invested Amount or such Increase Amount is equal to (A) $1,000,000 or an
integral multiple of $100,000 in excess thereof or (B) if less, the excess of
the Maximum Purchaser Group Invested Amount with respect to such Purchaser Group
over the Purchaser Group Invested Amount with respect to such Purchaser
Group;

    

    (ii)           after
giving effect to the Series 2008-1 Initial Invested Amount or such Increase
Amount, the Purchaser Group Invested Amount with respect to such Purchaser Group
would not exceed the Maximum Purchaser Group Invested Amount with respect to
such Purchaser Group;

    

    (iii)          after
giving effect to the Series 2008-1 Initial Invested Amount or such Increase
Amount, no AESOP I Operating Lease Vehicle Deficiency would occur and be
continuing;

    

    (iv)          no
Amortization Event or Potential Amortization Event would occur and be continuing
prior to or after giving effect to such Series 2008-1 Initial Invested Amount or
such Increase;

    

    (v)           not
more than two Increases have occurred in the four Business Days immedi­ately
preceding the date of such Increase;

    

    (vi)          all
of the representations and warranties made by each of ABRCF, the Lessees, the
Lessors and the Administrator in the Base Indenture, this Supplement and the
Related Documents to which each is a party are true and correct in all material
respects on and as of the Series 2008-1 Closing Date or such Increase Date, as
the case may be, as if made on and as of such date (except to the extent such
representations and warranties are expressly made as of another date);
and

    

    (vii)         all
conditions precedent to the making of any Loan under the applicable Loan
Agreements would be satisfied.

    

    ABRCF’s
acceptance of funds in connection with (x) the initial purchase of Series 2008-1
Notes on the Series 2008-1 Closing Date and (y) each Increase occurring on any
Increase Date shall constitute a representation and warranty by ABRCF to the
Purchaser Groups as of the Series 2008-1 Closing Date or such Increase Date
(except to the extent such representations and war­ran­ties are
expressly made as of another date), as the case may be, that all of the
conditions con­tained in this Section 2.3(c) have been
satisfied.

    

    
      
        
           

        

        
          34

          
            

          

        

        
           

        

      

    

    

    (d)           Upon
receipt of any notice required by Section 2.3(a) from ABRCF, the
Administrative Agent shall forward (by telecopy or electronic messaging system)
a copy of such notice to the Funding Agent with respect to each Purchaser Group,
no later than 5:00 p.m. (New York City time) on the day
received.  After receipt by any Funding Agent with respect to a
Purchaser Group of such notice from the Administrative Agent, such Funding Agent
shall, so long as the condi­tions set forth in Sections 2.3(a) and (c) are
satisfied, promptly provide telephonic notice to the related CP Conduit
Purchaser and the related APA Banks, of the Increase Date and of such Purchaser
Group’s Commitment Percentage of the Increase Amount.  If such CP
Conduit Purchaser elects to fund all or a portion of its Commitment Percentage
of the Increase Amount, such CP Conduit Purchaser shall pay in immediately
available funds its Commitment Percentage (or any portion thereof) of the amount
of such Increase on the related Increase Date to the Funding Agent with respect
to such Purchaser Group for deposit into the Series 2008-1 Collection
Account.  If such CP Conduit Purchaser does not fund the full amount
of its Commitment Percentage of the Increase Amount and the related APA Banks
are required to fund the portion thereof not funded by the CP Conduit Purchaser,
each such APA Bank shall pay in immediately available funds its APA Bank
Percentage of such portion on the related Increase Date to the Funding Agent
with respect to such Purchaser Group for deposit in the Series 2008-1 Collection
Account.   Each Funding Agent shall remit the amounts received by
it from its CP Conduit Purchaser or the related APA Banks pursuant to this
Section 2.3(d) to the Trustee for deposit into the Series 2008-1 Collection
Account.

    

    Section
2.4.  Sales
by CP Conduit Purchasers of Series 2008-1 Notes to APA Banks.
Notwithstanding any limitation to the contrary contained herein, each CP Conduit
Purchaser may, in its own discretion, at any time, sell or assign all or any
portion of its interest in its Series 2008-1 Note to any Conduit Assignee or to
the APA Banks with respect to such CP Conduit Purchaser pursuant to, and subject
to the terms and conditions of, the Asset Purchase Agreement with respect to
such CP Conduit Purchaser.

    

    Section
2.5.  Procedure for Decreasing the
Series 2008-1 Invested Amount; Optional
Termination

    

    (a)           On
any Business Day prior to the occurrence of an Amortization Event, upon the
written request of ABRCF or the Administrator on behalf of ABRCF, the Series
2008-1 Invested Amount may be reduced (a “Decrease”) by the
Trustee’s withdrawing (as set forth in such request) funds on deposit in the
Series 2008-1 Excess Collection Account on such Business Day in an amount not to
exceed the amount of such funds on deposit therein on such Business Day (after
giving effect to any application pursuant to clauses (i), (ii) and (iii) of
Section 3.2(e)), depositing such funds into the Series 2008-1 Distribution
Account and distributing such funds to the Administrative Agent on such Business
Day in accordance with Section 3.5(b); provided that ABRCF
shall have given the Adminis­trative Agent (with a copy to the Trustee)
irrevocable written notice (effective upon receipt) of the amount of such
Decrease prior to 9:30 a.m. (New York City time) on the second Business Day
prior to such Decrease, in the case of any such Decrease in an amount less than
$300,000,000, and prior to 9:30 a.m. (New York City time) on a Business Day
that is at least ten days prior to such Decrease, in the case of any such
Decrease in an amount of $300,000,000 or more; provided, further, that any
such Decrease shall be in an amount equal to $10,000,000 and integral multiples
of $500,000 in excess thereof (or if such Decrease will be used to reduce one or
more Non-Extending Purchaser Group’s Purchaser Group Invested Amounts, such
Decrease may be in such amount as is necessary to reduce the Purchaser Group
Invested Amounts of all such Non-Extending Purchaser Groups to
zero).  Upon each Decrease, the Administrative Agent shall indicate in
its records such Decrease and the Purchaser Group Invested Amount outstanding
with respect to each Purchaser Group after giving effect to such
Decrease.  Upon receipt of any notice required by Section 2.5(a)
from ABRCF, the Administrative Agent shall forward (by telecopy or electronic
messaging system) a copy of such notice to the Funding Agent with respect to
each Purchaser Group, no later than 1:00 p.m. (New York City time) on the
Business Day received.

    

    
      
        
           

        

        
          35

          
            

          

        

        
           

        

      

    

    

    (b)           On
any Business Day, ABRCF shall have the right to deliver an irrevocable written
notice (an “Optional
Termination Notice”) to the Administrative Agent, the Trustee, the
Administrator, Standard & Poor’s and the Rating Agencies in which ABRCF
declares that the Commitments shall terminate on the date (the “Optional Termination
Date”) set forth in such notice (which date, in any event, shall be a
Distribution Date not less than twenty Business Days from the date on which such
notice is delivered).  Upon receipt of any Optional Termination Notice
from ABRCF, the Administrative Agent shall promptly notify the Funding Agent
with respect to each Purchaser Group thereof.

    

    (c)           From
and after the Optional Termination Date, the Series 2008-1 Amortization Period
shall commence for all purposes under this Supplement, the Base Indenture and
the Related Documents.

    

    (d)           If
there are Principal Collections on deposit in the Series 2008-1 Excess
Collection Account on any Business Day on which the Purchaser Group Invested
Amount with respect to any Non-Extending Purchaser Group shall not have been
reduced to zero and ABRCF would be permitted under the terms of Section 2.5(a)
to effect a Decrease with such funds, ABRCF shall request such a Decrease in
accordance with Section 2.5(a) on the earliest possible date.

    

    Section
2.6.  Increases and Reductions of
the Commitments; Extensions of the Commitments.

    

    (a)           ABRCF
may from time to time request that any Purchaser Group agree to increase the
amount set forth opposite the name of the CP Conduit Purchaser included in such
Purchaser Group on Schedule I.  An increase in such amount shall be
effective hereunder if such Purchaser Group shall have agreed in its sole
discretion to such increase.

      

    
      
        
           

        

        
          36

          
            

          

        

        
           

        

      

    

    
       

      (b)           If
ABRCF desires to extend the Scheduled Expiry Date with respect to the Purchaser
Groups, ABRCF shall notify the Administrative Agent at least 60 days prior to
such Scheduled Expiry Date of its desire to extend the Scheduled Expiry Date
with respect to the Purchaser Groups, whereupon the Administrative Agent shall
notify the Funding Agent with respect to each Purchaser Group of ABRCF’s desire
to so extend the Scheduled Expiry Date.  Each Funding Agent, on behalf
of its Purchaser Group, shall notify the Administrative Agent and ABRCF in
writing of whether such Purchaser Group agrees to an extension of the Scheduled
Expiry Date with respect to such Purchaser Group; provided that failure
by a Funding Agent to respond to such request shall not be con­strued as a
consent by such Purchaser Group to such extension.  The decision to
extend or not extend shall be made by each Purchaser Group in its sole
discretion.  In the event that any Purchaser Group desires to extend
its Scheduled Expiry Date for an amount that is less than its Maximum Purchaser
Group Invested Amount prior to ABRCF’s request for an extension, ABRCF, in its
sole discretion, may accept such extension; provided, however, that such
Purchaser Group (x) shall be deemed to be a Non-Extending Purchaser Group
for purposes of Section 3.5 having a Purchaser Group Invested Amount equal to
the excess of its Purchaser Group Invested Amount over a percentage of its
Maximum Purchaser Group Invested Amount that will be available after the
extension of its Scheduled Expiry Date equal to the percentage equivalent of a
fraction, the numerator of which is the sum of the Purchaser Group Invested
Amounts with respect to all Extending Purchaser Groups, other than such
Purchaser Group and any other Purchaser Group reducing its Maximum Purchaser
Group Invested Amount, and the denominator of which is the sum of the Maximum
Purchaser Group Invested Amounts of all Extending Purchaser Groups, other than
such Purchaser Group and any other Purchaser Group reducing its Maximum
Purchaser Group Invested Amount and (y) shall be deemed to be an
Extending Purchaser Group with a Maximum Purchaser Group Invested Amount equal
to the portion of its Maximum Purchaser Group Invested Amount that will be
available after the extension of its Scheduled Expiry Date.  In
connection with any request by ABRCF to extend the Scheduled Expiry Date
pursuant to this Section 2.6(b), ABRCF shall provide (i) to the Administrative
Agent, who shall provide to each Purchaser Group, on or prior to the effective
date of any such extension, a certificate of the principal financial officer of
ABRCF to the effect set forth in Schedule 8.3(d) of the Base Indenture and (ii)
notice to the Rating Agencies and Standard & Poor’s of its request to extend
the Scheduled Expiry Date.
  

    (c)           On
any Business Day during the Series 2008-1 Revolving Period, ABRCF may, upon two
(2) Business Days’ prior written notice to the Administrative Agent
(effec­tive upon receipt) (with copies to the Administrator and the Trustee)
reduce the Series 2008-1 Maximum Invested Amount in an amount equal to
$10,000,000 or a whole multi­ple of $1,000,000 in excess thereof; provided that no such
termination or reduction shall be per­mitted if, after giving effect thereto
and to any reduction in the Series 2008-1 Invested Amount on such date, the
Purchaser Group Invested Amount with respect to any Purchaser Group would exceed
the Maximum Purchaser Group Invested Amount with respect to such Purchaser Group
then in effect.  Any reduc­tion in the Series 2008-1 Maximum
Invested Amount shall be made on a pro rata basis to the
Maximum Purchaser Group Invested Amounts with respect to the Purchaser Groups,
based on the Maximum Purchaser Group Invested Amount with respect to each
Purchaser Group.  Once reduced, the Maximum Purchaser Group Invested
Amounts may not be subsequently reinstated without each such Purchaser Group’s
prior written consent, which consent shall be granted or not in the sole
discretion of such Purchaser Group.

      

    
      
        
           

        

        
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      (d)           If,
after receiving a request for extension of its Scheduled Expiry Date from ABRCF
pursuant to Section 2.6(b), the Funding Agent with respect to a CP Conduit
Purchaser notifies ABRCF in writing of its decision not to extend its Scheduled
Expiry Date as requested or fails to respond to ABRCF’s request within 30 days
of its receipt of such request, at the request of ABRCF, such CP Conduit
Purchaser and the APA Banks with respect to such CP Conduit Purchaser shall on a
Distribution Date thereafter selected by ABRCF (or such other date as may be
agreed by ABRCF, the Funding Agent and the Administrative Agent) assign all or
any portion of their respective rights and obligations under this Supplement and
the Series 2008-1 Notes pursuant to Section 11.1 to a replacement CP Conduit
Purchaser and the APA Banks with respect to such replacement CP Conduit
Purchaser selected by ABRCF upon payment by the replacement CP Conduit Purchaser
and the APA Banks with respect to such replacement CP Conduit Purchaser (or upon
payment by ABRCF as agreed to by ABRCF, the assignor and the assignee) of an
amount equal to the sum of (i) the Purchaser Group Invested Amount with respect
to such Non-Extending Purchaser Group, and (ii) (A) if such Purchaser Group
includes a Match Funding CP Conduit Purchaser, the sum of (x) all accrued and
unpaid Discount on all outstanding Commercial Paper issued by, or for the
benefit of, such Match Funding CP Conduit Purchaser to fund the CP Funded Amount
with respect to such Match Funding CP Conduit Purchaser from the issuance
date(s) thereof to but excluding the date (the “Purchase Effective
Date”) of the assignment to the replacement CP Conduit Purchaser and the
APA Banks with respect to such CP Conduit Purchaser and (y) the aggregate
Discount to accrue on all outstanding Commercial Paper issued by, or for the
benefit of, such Match Funding CP Conduit Purchaser to fund the CP Funded Amount
with respect to such Match Funding CP Conduit Purchaser from and including the
Purchase Effective Date to and excluding the maturity date of each CP Tranche
with respect to such Match Funding CP Conduit Purchaser or (B) if such
Non-Extending Purchaser Group includes a Pooled Funding CP Conduit Purchaser,
the sum of (x) the aggregate amount of accrued and unpaid Discount on or in
respect of the Commercial Paper issued by, or for the benefit of, such Pooled
Funding CP Conduit Purchaser allocated, in whole or in part, by the Funding
Agent with respect to such Pooled Funding CP Conduit Purchaser, to fund the
purchase or maintenance of the CP Funded Amount with respect to such Pooled
Funding CP Conduit Purchaser as of the Purchase Effective Date and (y) the
aggregate amount of Discount to accrue on or in respect of the Commercial Paper
issued by, or for the benefit of, such Pooled Funding CP Conduit Purchaser
allocated, in whole or in part, by the Funding Agent with respect to such Pooled
Funding CP Conduit Purchaser, to fund the purchase or maintenance of the CP
Funded Amount with respect to such Pooled Funding CP Conduit Purchaser from and
including the Purchase Effective Date to and excluding the maturity dates of
such Commercial Paper, and (iii) all accrued and unpaid interest on the APA Bank
Funded Amount with respect to such Purchaser Group, calculated at the Alternate
Base Rate or the applicable Adjusted LIBO Rate plus the Applicable
Margin as of the Purchase Effective Date, and (iv) for each day from but
excluding the last day of the Series 2008-1 Interest Period immediately
preceding the Purchase Effective Date, an amount equal to (x) the CP Funded
Amount with respect to such Non-Extending Purchaser Group on such day times (y) the Program
Fee Rate divided by (z) 360, and (v) for
each day from but excluding the last day of the Series 2008-1 Interest Period
immediately preceding the Purchase Effective Date, an amount equal to (x) the
excess, if any, of the Commitment Amount with respect to such Non-Extending
Purchaser Group over the Purchaser Group Invested Amount with respect to such
Purchaser Group on such day times (y) the
Commitment Fee Rate as of such date divided by (z) 360, and (vi)
all Article VII Costs then due and payable to such Non-Extending Purchaser
Group, and (vii) without duplication, any other amounts then due and payable to
such Non-Extending Purchaser Group pursuant to this
Supplement.

    

      

    
      
        
           

        

        
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    (e)           ABRCF
may at any time add a multi-seller commercial paper conduit as an additional CP
Conduit Purchaser (an “Additional CP Conduit
Purchaser”) and one or more banks providing support to the Additional CP
Conduit Purchaser as APA Banks with respect to the Additional CP Conduit
Purchaser (the “Related Additional APA
Banks”), with the prior written consent of the Administrative Agent
(which consent shall not be unreasonably withheld), by providing at least ten
Business Days written notice of (i) the names of the Additional CP Conduit
Purchaser, the Related Additional APA Banks and the funding agent with respect
to the Additional CP Conduit Purchaser and the Related Additional APA Banks (the
“Additional Funding
Agent”), (ii) the date on which ABRCF desires to effect such addition
(the “Purchaser Group
Addition Date”), (iii) the proposed Maximum Purchaser Group Invested
Amount with respect to the Additional CP Conduit Purchaser and the Related
Additional APA Banks and (iv) the Commitment Percentage of each Purchaser Group
on the Purchaser Group Addition Date, after giving effect to the addition of the
Additional CP Conduit Purchaser and the Related Additional APA
Banks.  On the Purchaser Group Addition Date, each CP Conduit
Purchaser, the APA Banks with respect to such CP Conduit Purchaser and the
Funding Agent with respect to such CP Conduit Purchaser shall make an assignment
and assumption to the Additional CP Conduit Purchaser, the Related Additional
APA Banks and the Additional Funding Agent pursuant to Section 11.1, as directed
by the Administrative Agent, with the result that after giving effect thereto,
the Purchaser Group Invested Amount with respect to each such Purchaser Group
shall equal the product of (x) the Series 2008-1 Invested Amount on the
Purchaser Group Addition Date and (y) the Commitment Percentage of such
Purchaser Group on the Purchaser Group Addition Date, after giving effect to the
addition of the Additional CP Conduit Purchaser and the Related Additional APA
Banks.  No Purchaser Group shall be required to make any assignment
unless such assigning Purchaser Group shall receive in cash an amount equal to
the reduction in its Series 2008-1 Invested Amount.

      

    Section
2.7.  Interest;
Fees

    

    (a)           Interest
shall be payable on the Series 2008-1 Notes on each Distribution Date pursuant
to Section 3.3.

    

    (b)           On
any Business Day, ABRCF may, subject to Section 2.7(c), elect to allocate all or
any portion of the Available CP Funding Amount with respect to any Match Funding
CP Conduit Purchaser, to one or more CP Tranches with CP Rate Periods commencing
on such Business Day by giving the Administrative Agent and the Funding Agent
with respect to such Match Funding CP Conduit Purchaser irrevocable written or
telephonic (confirmed in writing) notice thereof, which notice must be received
by such Funding Agent prior to 3:00 p.m. (New York City time) on the second
Business Day prior to such Business Day.  Such notice shall specify
(i) the applicable Business Day, (ii) the CP Rate Period for each CP Tranche to
which a portion of the Available CP Funding Amount with respect to such
Purchaser Group is to be allocated and (iii) the portion of such Available CP
Funding Amount being allocated to each such CP Tranche.  On any
Business Day, ABRCF may, subject to Sections 2.7(c) and 7.4, elect to allocate
all or any portion of the Available APA Bank Funding Amount with respect to any
Purchaser Group to one or more Eurodollar Tranches with Eurodollar Periods
commencing on such Business Day by giving the Administrative Agent and the
Funding Agent with respect to such Purchaser Group irrevocable written or
telephonic (confirmed in writing) notice thereof, which notice must be received
by such Funding Agent prior to 1:00 p.m. (New York City time) three
Business Days prior to such Business Day.  Such notice shall specify
(i) the applicable Business Day, (ii) the Eurodollar Period for each Eurodollar
Tranche to which a portion of the Available APA Bank Funding Amount with respect
to such Purchaser Group is to be allocated and (iii) the portion of such
Available APA Bank Funding Amount being allocated to each such Eurodollar
Tranche.  Upon receipt of any such notice, the Funding Agent with
respect to a Purchaser Group shall notify the CP Conduit Purchaser and the APA
Bank with respect to such Purchaser Group of the contents of such notice
promptly upon receipt thereof.

    

    
      
        
           

        

        
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    (c)           Notwithstanding
anything to the contrary contained in this Section 2.7, (i) (A) each Match
Funding CP Conduit Purchaser shall approve the length of each CP Rate Period and
the portion of the Available CP Funding Amount with respect to such Match
Funding CP Conduit Purchaser allocated to such CP Rate Period, (B) such Match
Funding CP Conduit Purchaser may select, in its sole discretion, any new CP Rate
Period if (x) ABRCF does not provide notice of a new CP Rate Period on a timely
basis or (y) the Funding Agent with respect to such Match Funding CP Conduit
Purchaser, on behalf of such Match Funding CP Conduit Purchaser, determines, in
its sole discretion, that the CP Rate Period requested by ABRCF is unavailable
or for any reason commercially undesirable and (C) the portion of the Available
CP Funding Amount with respect to such Match Funding CP Conduit Purchaser
allocable to each CP Tranche must be in an amount equal to $1,000,000 or an
integral multiple of $100,000 in excess thereof and (ii) (A) the portion of the
Available APA Bank Funding Amount with respect to any Purchaser Group allocable
to each Eurodollar Tranche must be in an amount equal to $100,000 or an integral
multiple of $100,000 in excess thereof, (B) no more than 7 Eurodollar Tranches
with respect to such Purchaser Group shall be outstanding at any one time, (C)
after the occurrence and during the continuance of any Amortization Event or
Potential Amortization Event, ABRCF may not elect to allocate any portion of the
Available APA Bank Funding Amount with respect to any Purchaser Group to a
Eurodollar Tranche and (D) during the Series 2008-1 Amortization Period, ABRCF
may not select any Eurodollar Period that does not end on or prior to the next
succeeding Distribution Date.

    

    (d)           On
any Business Day, a Match Funding CP Conduit Purchaser may elect that ABRCF no
longer be permitted to select CP Tranches in accordance with Sections 2.7(b) and
(c) in respect of the CP Conduit Funded Amount with respect to such CP Conduit
Purchaser by giving ABRCF and the Administrative Agent irrevocable written
notice thereof, which notice must be received by ABRCF and the Administrative
Agent at least one Business Day prior to such Business Day.  On any
Business Day, a Pooled Funding CP Conduit Purchaser may with the prior written
consent of the Administrator (which consent shall not be unreasonably withheld)
elect thereafter to allow ABRCF to select CP Tranches in accordance with
Sections 2.7(b) and (c) in respect of the CP Conduit Funded Amount with respect
to such CP Conduit Purchaser by giving ABRCF and the Administrative Agent
irrevocable written notice thereof, which notice and consent must be received by
ABRCF and the Administrative Agent at least one Business Day prior to such
election.  Any CP Conduit Purchaser making an election to change the
manner in which its funding costs in respect of its Series 2008-1 Note are
allocated in accordance with this Section 2.7(d) will be both a Match Funding CP
Conduit Purchaser and a Pooled Funding CP Conduit Purchaser during the period
that its Series 2008-1 Note is funded on both a “pooled” and “match funded”
basis and its Monthly Funding Costs during that period will be calculated
accordingly.

    

    (e)           ABRCF
shall pay with funds available pursuant to Section 3.3(a) to the
Administra­tive Agent, for the account of each Purchaser Group, on each
Distribution Date, a commitment fee with respect to the Series 2008-1 Interest
Period ending on the day preceding such Distribution Date (the “Commitment Fee”)
during the period from the Series 2008-1 Closing Date to and including the
Expiry Date with respect to such Purchaser Group at the Commitment Fee Rate of
the average daily Commitment Amount with respect to such Purchaser Group during
such Series 2008-1 Interest Period less the aver­age daily Purchaser Group
Invested Amount with respect to such Purchaser Group during such Series 2008-1
Interest Period.  The Commitment Fees shall be payable monthly in
arrears on each Distribution Date.

    

    
      
        
           

        

        
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    (f)           Calculations
of per annum rates under this Supplement shall be made on the basis of a 360-
(or 365-/366- in the case of interest on the Floating Tranche based on the Prime
Rate) day year.  Calculations of Commitment Fees shall be made on the
basis of a 360-day year.  Each determination of the Adjusted LIBOR
Rate by the Administrative Agent shall be conclusive and binding upon each of
the parties hereto in the absence of manifest error.

    

    Section
2.8.  Indemnification by
ABRCF.  ABRCF agrees to indemnify and hold harmless the
Trustee, the Administrative Agent, each Funding Agent, each CP Conduit
Purchaser, each APA Bank and each of their respective officers, directors,
agents and employees (each, a “Company indemnified
person”) from and against any loss, liabil­ity, expense, damage or
injury suffered or sustained by (a “Claim”) such Company
indem­nified person by reason of (i) any acts, omissions or alleged acts or
omissions arising out of, or relating to, activities of ABRCF pursuant to the
Indenture or the other Related Documents to which it is a party, (ii) a breach
of any representation or warranty made or deemed made by ABRCF (or any of its
officers) in the Indenture or other Related Document or (iii) a failure by ABRCF
to comply with any applicable law or regulation or to perform its covenants,
agreements, duties or obliga­tions required to be performed or observed by
it in accordance with the provisions of the Indenture or the other Related
Documents, including, but not limited to, any judgment, award, settlement,
reasonable attorneys’ fees and other reason­able costs or expenses incurred
in connec­tion with the defense of any actual or threatened action,
proceeding or claim, except to the extent such loss, liability, expense, damage
or injury resulted from the gross negligence, bad faith or willful misconduct of
such Company indemnified person or its officers, directors, agents,
princi­pals, employees or employers or includes any Excluded Taxes; provided that any
payments made by ABRCF pursuant to this Section 2.8 shall be made solely from
funds available pursuant to Section 3.3(e), shall be non-recourse other than
with respect to such funds, and shall not constitute a claim against ABRCF to
the extent that such funds are insufficient to make such payment.

    

    Section
2.9.  Funding
Agents

    

    (a)           The
Funding Agent with respect to each Purchaser Group is hereby authorized to
record on each Business Day the CP Funded Amount with respect to such Purchaser
Group and the aggre­gate amount of Discount accruing with respect thereto on
such Business Day and the APA Bank Funded Amount with respect to such Purchaser
Group and the amount of interest accruing with respect thereto on such Business
Day and, based on such recordations, to determine the Monthly Funding Costs with
respect to each Series 2008-1 Interest Period and such Purchaser
Group.  Any such recordation by a Funding Agent, absent manifest
error, shall constitute prima facie evidence of the accuracy of the information
so recorded.  Further­more, the Funding Agent with respect to each
Purchaser Group will maintain records sufficient to iden­tify the percentage
interest of the related CP Conduit Purchaser and each APA Bank with respect to
such Purchaser Group holding an interest in the Series 2008-1 Note registered in
the name of such Funding Agent and any amounts owing thereunder.

    

    
      
        
           

        

        
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    (b)           Upon
receipt of funds from the Administrative Agent on each Distribution Date and the
date of any Decrease, each Funding Agent shall pay such funds to the related CP
Conduit Purchaser and/or the related APA Bank owed such funds in accordance with
the recorda­tions maintained by it in accordance with Section 2.9(a) and the
Asset Purchase Agreement with respect to such CP Conduit
Purchaser.  If a Funding Agent shall have paid to any CP Conduit
Purchaser or APA Bank any funds that (i) must be returned for any reason
(including bankruptcy) or (ii) exceeds that which such CP Conduit Purchaser or
APA Bank was entitled to receive, such amount shall be promptly repaid to such
Funding Agent by such CP Conduit Purchaser or APA Bank.

    

    ARTICLE
III

    

    SERIES
2008-1 ALLOCATIONS

    

    With
respect to the Series 2008-1 Notes, the following shall apply:

    

    Section
3.1.  Establishment of Series
2008-1 Collection Account, Series 2008-1 Excess Collection Account and Series
2008-1 Accrued Interest Account

    

    (a)           All
Collections allocable to the Series 2008-1 Notes shall be allocated to the
Collection Account.

    

    (b)           The
Trustee will create three administra­tive subaccounts within the Collection
Account for the benefit of the Series 2008-1 Noteholders:  the Series
2008-1 Collection Account (such sub-account, the “Series 2008-1 Collection
Account”), the Series 2008-1 Excess Collection Account (such sub-account,
the “Series 2008-1
Excess Collection Account”) and the Series 2008-1 Accrued Interest
Account (such sub-account, the “Series 2008-1 Accrued
Interest Account”).

    

    Section
3.2.  Allocations with Respect to
the Series 2008-1 Notes.  The net proceeds from the initial
sale of the Series 2008-1 Notes and any Increase will be deposited into the
Collection Account.  On each Business Day on which Collections are
deposited into the Collection Account (each such date, a “Series 2008-1 Deposit
Date”), the Adminis­trator will direct the Trustee in writing
pursu­ant to the Administration Agreement to allocate all amounts deposited
into the Collection Account in accordance with the provisions of this Section
3.2:

    

    (a)           Allocations of Collections
During the Series 2008-1 Revolving Period.  During the Series
2008-1 Revolving Period, the Administrator will direct the Trustee in writing
pursuant to the Administration Agree­ment to allocate on each day, prior to
11:00 a.m. (New York City time) on each Series 2008-1 Deposit Date, all
amounts deposited into the Collection Account as set forth below:

    

    (i)        
   allocate to the Series 2008-1 Collection Account an amount
equal to the sum of (A) the Series 2008-1 Invest­ed Percentage (as of such
day) of the aggregate amount of Interest Collections on such day and (B) any
Series 2008-1 Interest Rate Cap Proceeds received by the Trustee on such
day.  All such amounts allocated to the Series 2008-1 Collection
Account shall be further allocated to the Series 2008-1 Accrued Interest
Account; and

    

    
      
        
           

        

        
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    (ii)           allocate
to the Series 2008-1 Excess Collection Account the sum of (A) the Series 2008-1
Invested Percentage (as of such day) of the aggregate amount of Principal
Collections on such day (for any such day, the “Series 2008-1 Principal
Allocation”) and (B) the proceeds from the initial issuance of the Series
2008-1 Notes and from any Increase; provided, however, if a Waiver
Event shall have occurred, then such allocation shall be modified as provided in
Article V.

    

    (b)           Allocations of Collections
During the Series 2008-1 Amortization Period.  With respect to
the Series 2008-1 Amortization Period, other than after the occurrence of an
Event of Bankruptcy with respect to ABCR, any other Lessee or any Permitted
Sublessee, the Administrator will direct the Trustee in writing pursuant to the
Administration Agreement to allocate, prior to 11:00 a.m. (New York City time)
on any Series 2008-1 Deposit Date, all amounts deposited into the Collection
Account as set forth below:

    

    (i)          
 allocate to the Series 2008-1 Collection Account an amount determined as
set forth in Section 3.2(a)(i) above for such day, which amount shall be further
allocated to the Series 2008-1 Accrued Interest Account; and

    

    (ii)           allocate
to the Series 2008-1 Collection Account an amount equal to the Series 2008-1
Principal Allocation for such day, which amount shall be used to make principal
payments in respect of the Series 2008-1 Notes, ratably, without preference or
priority of any kind, until the Series 2008-1 Invested Amount is paid in full;
provided that if on any Determination Date (A) the Administrator determines that
the amount anticipated to be available from Interest Collections allocable to
the Series 2008-1 Notes, Series 2008-1 Interest Rate Cap Proceeds and other
amounts available pursuant to Section 3.3 to pay Series 2008-1 Monthly Interest
and the Commitment Fees on the next succeeding Distribution Date will be less
than the Series 2008-1 Monthly Interest and Commitment Fees for the Series
2008-1 Interest Period ending on the day preceding such Distribution Date and
(B) the Series 2008-1 Enhancement Amount is greater than zero, then the
Administrator shall direct the Trustee in writing to reallocate a portion of the
Principal Collections allocated to the Series 2008-1 Notes during the Related
Month equal to the lesser of such insufficiency and the Series 2008-1
Enhancement Amount to the Series 2008-1 Accrued Interest Account to be treated
as Interest Collections on such Distribution Date.

    

    (c)           Allocations of Collections
after the Occurrence of an Event of Bankruptcy.  After the
occur­rence of an Event of Bankruptcy with respect to ARAC, any other Lessee
or any Permitted Sublessee, the Administrator will direct the Trustee in writing
pursuant to the Administra­tion Agreement to allocate, prior to 11:00
a.m.  (New York City time) on any Series 2008-1 Deposit Date, all
amounts deposited into the Collection Account as set forth below:

    

    (i)         
  allocate to the Series 2008-1 Collection Account an amount equal to
the sum of (A) the Series 2008-1 AESOP I Operating Lease Vehicle Percentage as
of the date of the occurrence of such Event of Bankruptcy of the aggregate
amount of Interest Collections made under the AESOP I Operating Lease Loan
Agreement, (B) the aggregate amount of Interest Collections made under the AESOP
II Loan Agreement and (C) any Series 2008-1 Interest Rate Cap Proceeds received
by the Trustee on such day.  All such amounts allocated to the Series
2008-1 Collection Account shall be further allocated to the Series 2008-1
Accrued Interest Account; and

    

    
      
        
           

        

        
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    (ii)           allocate
to the Series 2008-1 Collection Account an amount equal to the sum of (A) the
Series 2008-1 AESOP I Operating Lease Vehicle Percentage as of the date of the
occurrence of such Event of Bankruptcy of the aggregate amount of Principal
Collections made under the AESOP I Operating Lease Loan Agreement and (B) the
aggregate amount of Principal Collections made under the AESOP II Loan
Agreement, which amount shall be used to make principal payments in respect of
the Series 2008-1 Notes until the Series 2008-1 Notes have been paid in full;
provided that
if on any Determination Date (A) the Administrator determines that the amount
anticipated to be available from Interest Collections allocable to the Series
2008-1 Notes, Series 2008-1 Interest Rate Cap Proceeds and other amounts
available pursuant to Section 3.3 to pay Series 2008-1 Monthly Interest and the
Commitment Fees on the next succeeding Distribution Date will be less than the
Series 2008-1 Monthly Interest and Commitment Fees for the Series 2008-1
Interest Period ending on the day preceding such Distribution Date and (B) the
Series 2008-1 Enhancement Amount is greater than zero, then the Administrator
shall direct the Trustee in writing to reallocate a portion of the Principal
Collections allocated to the Series 2008-1 Notes during the Related Month equal
to the lesser of such insufficiency and the Series 2008-1 Enhancement Amount to
the Series 2008-1 Accrued Interest Account to be treated as Interest Collections
on such Distribution Date.

    

    (d)           Allocations From Other
Series.  Amounts allocated to other Series of Notes that have
been reallocated by ABRCF to the Series 2008-1 Notes (i) during the Series
2008-1 Revolving Period shall be allocated to the Series 2008-1 Excess
Collection Account and applied in accordance with Section 3.2(e) and (ii) during
the Series 2008-1 Amortization Period shall be allocated to the Series 2008-1
Collection Account and applied in accordance with Section 3.2(b)(ii) or
3.2(c)(ii), as the case may be, to make principal payments in respect of the
Series 2008-1 Notes.

    

    (e)           Series 2008-1 Excess
Collection Account.  Amounts allocated to the Series 2008-1
Excess Collection Account on any Series 2008-1 Deposit Date will be
(i) first, used to reduce the Purchaser Group Invested Amount with respect
to any Non-Extending Purchaser Group to the extent required pursuant to Section
2.5(d), (ii) second, deposited in the Series 2008-1 Reserve Account in an amount
up to the excess, if any, of the Series 2008-1 Required Reserve Account Amount
for such date, after giving effect to any Increase or Decrease on such date,
over the Series 2008-1 Available Reserve Account Amount for such date, (iii)
third, to the extent directed by ABRCF used to pay the principal amount of other
Series of Notes that are then required to be paid, (iv) fourth, to the extent
directed in writing by the Administrator, used to make a voluntary Decrease in
the Series 2008-1 Invested Amount, (v) fifth, to the extent directed in writing
by the Administrator used to make a voluntary decrease in the Invested Amount of
any other Series of Notes that may be reduced in accordance with the Indenture,
(vi) sixth, released to AESOP Leasing in an amount equal to (A) the Loan
Agreement’s Share with respect to the AESOP I Operating Lease Loan Agreement as
of such date times (B) 100% minus the Loan Payment Allocation Percentage with
respect to the AESOP I Operating Lease Loan Agreement as of such date times (C)
the amount of any remaining funds and (vii) seventh, paid to ABRCF for any use
permitted under the Related Documents, including to make Loans under the Loan
Agreements to the extent the Borrowers have requested Loans thereunder and
Eligible Vehicles are avail­able for financing thereunder; provided, in the case
of clauses (v), (vi) and (vii), that no AESOP I Operating Lease Vehicle
Deficiency would result there­from or exist immedi­ately
thereafter.  Upon the occurrence of an Amortization Event, funds on
deposit in the Series 2008-1 Excess Collection Account will be with­drawn by
the Trustee, deposited in the Series 2008-1 Collection Account and allocated as
Principal Collections to reduce the Series 2008-1 Invested Amount on the
immediately succeeding Distribution Date.

    

    
      
        
           

        

        
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    (f)           Past Due Rental
Payments.  Notwithstanding Section 3.2(a), if after the
occurrence of a Series 2008-1 Lease Payment Deficit, the Lessees shall make
pay­ments of Monthly Base Rent or other amounts payable by the Lessees under
the Leases on or prior to the fifth Business Day after the occurrence of such
Series 2008-1 Lease Payment Deficit (a “Past Due Rent
Payment”), the Administrator shall direct the Trustee in writing pursuant
to the Administration Agreement to allocate to the Series 2008-1 Collection
Account an amount equal to the Series 2008-1 Invested Percentage as of the date
of the occurrence of such Series 2008-1 Lease Payment Deficit of the Collections
attributable to such Past Due Rent Payment (the “Series 2008-1 Past Due Rent
Payment”).  The Administrator shall instruct the Trustee in
writing pursuant to the Administration Agreement to withdraw from the Series
2008-1 Collection Account and apply the Series 2008-1 Past Due Rent Payment in
the following order:

    

    (i)         
  if the occurrence of such Series 2008-1 Lease Payment Deficit
resulted in a withdrawal being made from the Series 2008-1 Reserve Account
pursuant to Section 3.3(b), deposit in the Series 2008-1 Reserve Account an
amount equal to the lesser of (x) the Series 2008-1 Past Due Rent Payment and
(y) the excess, if any, of the Series 2008-1 Required Reserve Account Amount
over the Series 2008-1 Available Reserve Account Amount on such
day;

    

    (ii)           if
the occurrence of the related Series 2008-1 Lease Payment Deficit resulted in
one or more Lease Deficit Disbursements being made under the Series 2008-1
Letters of Credit, pay to each Series 2008-1 Letter of Credit Provider who made
such a Lease Deficit Disbursement for application in accor­dance with the
provisions of the applicable Series 2008-1 Reimbursement Agreement an amount
equal to the lesser of (x) the unreimbursed amount of such Series 2008-1
Letter of Credit Provider’s Lease Deficit Disbursement and (y) such Series
2008-1 Letter of Credit Provider’s pro rata share, calculated on the basis of
the unreimbursed amount of each Series 2008-1 Letter of Credit Provider’s Lease
Deficit Disbursement, of the amount of the Series 2008-1 Past Due Rent Payment
remaining after payment pursuant to clause (i) above;

    

    
      
        
           

        

        
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    (iii)          if
the occurrence of such Series 2008-1 Lease Payment Deficit resulted in a
withdrawal being made from the Series 2008-1 Cash Collateral Account, deposit in
the Series 2008-1 Cash Collateral Account an amount equal to the lesser of (x)
the amount of the Series 2008-1 Past Due Rent Payment remaining after any
payment pursuant to clauses (i) and (ii) above and (y) the amount withdrawn from
the Series 2008-1 Cash Collateral Account on account of such Series 2008-1 Lease
Payment Deficit;

    

    (iv)          allocate
to the Series 2008-1 Accrued Interest Account the amount, if any, by which the
Series 2008-1 Lease Interest Payment Deficit, if any, relating to such Series
2008-1 Lease Payment Deficit exceeds the amount of the Series 2008-1 Past Due
Rent Payment applied pursuant to clauses (i), (ii) and (iii) above;
and

    

    (v)           treat
the remaining amount of the Series 2008-1 Past Due Rent Payment as Principal
Collections allocated to the Series 2008-1 Notes in accordance with Section
3.2(a)(ii) or 3.2(b)(ii), as the case may be.

    

    Section
3.3.  Payments to
Noteholders.  The
Funding Agent with respect to each Purchaser Group shall provide written notice
to the Administrative Agent (x) no later than two Business Days prior to each
Determination Date, setting forth the Monthly Funding Costs with respect to such
Purchaser Group with respect to the portion of the current Series 2008-1
Interest Period ending on such Business Day and a reasonable estimation of the
Monthly Funding Costs with respect to such Purchaser Group for the remainder of
such Series 2008-1 Interest Period and (y) within three Business Days after the
end of each calendar month, setting forth the Monthly Funding Costs (calculated
as if such calendar month was a Series 2008-1 Interest Period) with respect to
such Purchaser Group for such calendar month.  The Administrative
Agent shall, within two Business Days following its receipt of such information
from each Funding Agent, compile the information provided in such written notice
pursuant to (x) or (y) above, as applicable, into one written notice for all
Purchaser Groups and forward such notice to the Administrator.  If the
actual amount of the Monthly Funding Costs with respect to any Purchaser Group
for a Series 2008-1 Interest Period is less than or greater than the amount
thereof estimated by the Funding Agent with respect to such Purchaser Group on a
Determination Date, such Funding Agent shall notify the Administrator and the
Administrative Agent thereof on the next succeeding Determination Date and the
Administrator will reduce or increase the Monthly Funding Costs with respect to
such Purchaser Group for the next succeeding Series 2008-1 Interest Period
accordingly.  The Administrator shall determine the Series 2008-1 Note
Rate for the last Series 2008-1 Interest Period on the Determination Date
immediately preceding the final Distribution Date based on the information
provided by the Funding Agents.  If a Funding Agent determines that
the actual Monthly Funding Costs with respect to its Purchaser Group for the
last Series 2008-1 Interest Period will be more or less than the estimate
thereof provided to the Administrator and informs the Administrator of such
variance prior to the Distribution Date for such Series 2008-1 Interest Period,
the Administrator will recalculate the Series 2008-1 Note Rate for such Series
2008-1 Interest Period.  On each Determination Date, as provided
below, the Administrator shall instruct the Paying Agent in writing pursuant to
the Administra­tion Agreement to with­draw, and on the following
Distribution Date the Paying Agent, acting in accor­dance with such
instruc­tions, shall withdraw the amounts required to be withdrawn from the
Collection Account pursu­ant to Section 3.3(a) below in respect of all funds
available from Series 2008-1 Interest Rate Cap Proceeds and Interest Collections
processed since the preceding Distribution Date and allocated to the holders of
the Series 2008-1 Notes.

    

    
      
        
           

        

        
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    (a)           Note Interest and Commitment
Fees with respect to the Series 2008-1 Notes.  On each
Determin­a­tion Date, the Adminis­trator shall instruct the Trustee
and the Paying Agent in writing pursuant to the Administration Agreement as to
the amount to be withdrawn and paid pursuant to Section 3.4 from the Series
2008-1 Accrued Interest Account to the extent funds are anticipated to be
available from Interest Collections allo­cable to the Series 2008-1 Notes
and the Series 2008-1 Interest Rate Cap Proceeds pro­cessed from, but not
including, the preceding Distribu­tion Date through the succeeding
Dis­tribution Date in respect of (x) first, an amount equal to the Series
2008-1 Monthly Interest for the Series 2008-1 Interest Period ending on the day
preceding the related Distribution Date, (y) second, an amount equal to the
Commitment Fees for each Purchaser Group for the Series 2008-1 Interest Period
ending on the day preceding the related Distribution Date and (z) third, an
amount equal to the amount of any unpaid Series 2008-1 Shortfall as of the
preceding Distribu­tion Date (together with any accrued interest on such
Series 2008-1 Shortfall).  On the following Distribution Date, the
Trustee shall withdraw the amounts described in the first sentence of this
Sec­tion 3.3(a) from the Series 2008-1 Accrued Interest Account and
deposit such amounts in the Series 2008-1 Distribution Account.

    

    (b)           Withdrawals from Series
2008-1 Reserve Account.  If the Administrator determines on any
Distribution Date that the amounts available from the Series 2008-1 Accrued
Interest Account are insufficient to pay the sum of the amounts described in
clauses (x), (y) and (z) of Section 3.3(a) above on such Distribution Date, the
Administrator shall instruct the Trustee in writing to withdraw from the Series
2008-1 Reserve Account and deposit in the Series 2008-1 Distribution Account on
such Distribution Date an amount equal to the lesser of the Series 2008-1
Available Reserve Account Amount and such insufficiency.  The Trustee
shall withdraw such amount from the Series 2008-1 Reserve Account and deposit
such amount in the Series 2008-1 Distribution Account.

    

    (c)           Lease Payment Deficit
Notice.  On or before 10:00 a.m. (New York City time) on
each Distribution Date, the Administrator shall notify the Trustee of the amount
of any Series 2008-1 Lease Payment Deficit, such notification to be in the form
of Exhibit F
(each a “Lease Payment
Deficit Notice”).

    

    (d)           Draws on Series 2008-1
Letters of Credit For Series 2008-1 Lease Interest Payment
Deficits.  If the Administrator determines on the Business Day
immediately preceding any Distribution Date that on such Distribution Date there
will exist a Series 2008-1 Lease Interest Payment Deficit, the Administrator
shall, on or prior to 3:00 p.m. (New York City time) on such Business Day,
instruct the Trustee in writing to draw on the Series 2008-1 Letters of Credit,
if any, and, the Trustee shall, by 5:00 p.m. (New York City time) on such
Business Day draw an amount (identified by the Administrator) equal to the least
of (i) such Series 2008-1 Lease Interest Payment Deficit, (ii) the excess, if
any, of the sum of the amounts described in clauses (x), (y) and (z) of Section
3.3(a) above for such Distribution Date over the amounts available from the
Series 2008-1 Accrued Interest Account on such Distribution Date plus the amount
withdrawn from the Series 2008-1 Reserve Account pursuant to Section 3.3(b) and
(iii) the Series 2008-1 Letter of Credit Liquidity Amount on the Series 2008-1
Letters of Credit by presenting to each Series 2008-1 Letter of Credit Provider
a Certificate of Lease Deficit Demand and shall cause the Lease Deficit
Disbursements to be deposited in the Series 2008-1 Distribution Account on such
Distribution Date for distribution in accordance with Section 3.4; provided, however, that if the
Series 2008-1 Cash Collateral Account has been estab­lished and funded, the
Trustee shall withdraw from the Series 2008-1 Cash Collateral Account and
deposit in the Series 2008-1 Distribution Account an amount equal to the lesser
of (x) the Series 2008-1 Cash Collateral Percentage on such date of the least of
the amounts described in clauses (i), (ii) and (iii) above and (y) the Series
2008-1 Available Cash Collateral Account Amount on such date and draw an amount
equal to the remainder of such amount on the Series 2008-1 Letters of
Credit.

    

    
      
        
           

        

        
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    (e)           Balance.  On
or prior to the second Busi­ness Day preceding each Distribution Date, the
Adminis­trator shall instruct the Trustee and the Paying Agent in writing
pursuant to the Administration Agreement to pay the balance (after making the
payments required in Sec­tion 3.3(a)), if any, of the amounts available from
the Series 2008-1 Accrued Interest Account as follows:

    

    (i)        
   on each Distribution Date during the Series 2008-1 Revolving
Period, (1) first, to the Administrator, an amount equal to the Series 2008-1
Percentage as of the beginning of such Series 2008-1 Interest Period of the
por­tion of the Monthly Administration Fee pay­able by ABRCF (as
specified in clause (iii) of the definition thereof) for such Series 2008-1
Interest Period, (2) second, to the Trustee, an amount equal to the Series
2008-1 Percentage as of the beginning of such Series 2008-1 Interest Period of
the Trustee’s fees for such Series 2008-1 Interest Period, (3) third, to the
Series 2008-1 Distribution Account to pay any Article VII Costs, (4) fourth, to
pay any Carrying Charges (other than Carrying Charges provided for above) to the
Persons to whom such amounts are owed, an amount equal to the Series 2008-1
Percentage as of the beginning of such Series 2008-1 Interest Period of such
Carrying Charges (other than Carrying Charges provided for above) for such
Series 2008-1 Interest Period and (5) fifth, the balance, if any (“Excess Collections”),
shall be withdrawn by the Paying Agent from the Series 2008-1 Collection Account
and deposited in the Series 2008-1 Excess Collection Account; and

    

    (ii)           on
each Distribution Date during the Series 2008-1 Amortization Period, (1) first,
to the Trustee, an amount equal to the Series 2008-1 Percentage as of the
beginning of such Series 2008-1 Interest Period of the Trustee’s fees for such
Series 2008-1 Interest Peri­od, (2) second, to the Adminis­tra­tor,
an amount equal to the Series 2008-1 Percentage as of the beginning of such
Series 2008-1 Interest Period of the portion of the Monthly Administration Fee
(as specified in clause (iii) of the definition thereof) payable by ABRCF for
such Series 2008-1 Interest Period, (3) third, to the Series 2008-1 Distribution
Account to pay any Article VII Costs, (4) fourth, to pay any Carrying Charges
(other than Carrying Charges provided for above) to the Persons to whom such
amounts are owed, an amount equal to the Series 2008-1 Percentage as of the
beginning of such Series 2008-1 Interest Period of such Carrying Charges (other
than Carrying Charges provided for above) for such Series 2008-1 Interest Period
and (5) fifth, the balance, if any, shall be treated as Principal
Collections.

    

    
      
        
           

        

        
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    (f)           Shortfalls.  If
the amounts described in Section 3.3 are insuffi­cient to pay the Series
2008-1 Monthly Interest and the Commitment Fees of the Purchaser Groups on any
Dis­tribution Date, payments of interest to the Series 2008-1 Noteholders
and payments of Commitment Fees to the Purchaser Groups will be reduced on a
pro rata basis by the
amount of such defici­ency.  The aggregate amount, if any, of such
deficiency on any Distribution Date shall be referred to as the “Series 2008-1
Shortfall.”  Interest shall accrue on the Series 2008-1
Shortfall at the Alternate Base Rate plus 2% per annum.

    

    Section
3.4.  Payment of Note Interest and
Commitment Fees.  On each Distribution Date, subject to
Sec­tion 9.8 of the Base Indenture, the Paying Agent shall, in accordance
with Section 6.1 of the Base Indenture, pay to the Adminis­trative Agent for
the accounts of the Purchaser Groups from the Series 2008-1 Distribution Account
the amounts deposited in the Series 2008-1 Distribution Account pursuant to
Section 3.3.  Upon the receipt of funds from the Paying Agent on each
Distribution Date on account of Series 2008-1 Monthly Interest, the
Administrative Agent shall pay to each Funding Agent with respect to a Purchaser
Group an amount equal to the Monthly Funding Costs with respect to such
Purchaser Group with respect to the Series 2008-1 Interest Period ending on the
day preceding such Distribution Date plus the amount of
any unpaid Series 2008-1 Shortfalls relating to unpaid Series 2008-1 Monthly
Interest payable to such Purchaser Group as of the preceding Distribution Date,
together with any interest thereon at the Alternate Base Rate plus 2% per
annum.  If the amount paid to the Administrative Agent on any
Distribution Date pursuant to this Section 3.4 on account of Series 2008-1
Monthly Interest for the Series 2008-1 Interest Period ending on the day
preceding such Distribution Date is less than such Series 2008-1 Monthly
Interest, the Administrative Agent shall pay the amount available to the Funding
Agents, on behalf of the Purchaser Groups, on a pro rata basis, based on
the Monthly Funding Costs with respect to each Purchaser Group with respect to
such Series 2008-1 Interest Period.  Upon the receipt of funds from
the Paying Agent on each Distribution Date on account of Commitment Fees, the
Administrative Agent shall pay to each Funding Agent with respect to a Purchaser
Group an amount equal to the Commitment Fee payable to such Purchaser Group with
respect to the Series 2008-1 Interest Period ending on the day preceding such
Distribution Date plus the amount of
any unpaid Series 2008-1 Shortfalls relating to unpaid Commitment Fees payable
to such Purchaser Group as of the preceding Distribution Date, together with any
interest thereon at the Alternate Base Rate plus 2% per annum.  If the
amount paid to the Administrative Agent on any Distribution Date pursuant to
this Section 3.4 on account of Commitment Fees is less than the Commitment Fees
payable on such Distribution Date, the Administrative Agent shall pay the amount
available to the Funding Agents, on behalf of the Purchaser Groups, on a pro rata basis, based on
the Commitment Fee payable to each Purchaser Group on such Distribution
Date.  Upon the receipt of funds from the Trustee or the Paying Agent
on any Distribution Date on account of Article VII Costs, the Administrative
Agent shall pay such amounts to the Funding Agent with respect to the CP Conduit
Purchaser or the APA Bank owed such amounts.  If the amounts paid to
the Administrative Agent on any Distribution Date pursuant to Section 3.3(e) on
account of Article VII Costs are less than the Article VII Costs due and payable
on such Distribution Date, the Administrative Agent shall pay the amounts
available to the Funding Agents with respect to the CP Conduit Purchasers and
APA Banks owed such amounts, on a pro rata basis, based on
the Article VII Costs owing to such CP Conduit Purchasers and APA
Banks.  Due and unpaid Article VII Costs owing to a Purchaser Group
shall accrue interest at the Alternate Base Rate plus 2%; provided that Article
VII Costs shall not be considered due until the first Distribution Date
following five days’ notice to ABRCF and the Administrator of such Article VII
Costs.

    

    
      
        
           

        

        
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    Section
3.5.  Payment of Note
Principal.

    

    (a)           Monthly Payments During
Series 2008-1 Amortization Period.  Commencing on the first
Determination Date after the commencement of the Series 2008-1 Amortization
Period, the Administrator shall instruct the Trustee and the Paying Agent in
writing pursuant to the Administration Agreement and in accordance with this
Section 3.5 as to (i) the amount allocated to the Series 2008-1 Notes during the
Related Month pursuant to Section 3.2(b)(ii) or (c)(ii), as the case may be,
(ii) any amounts to be withdrawn from the Series 2008-1 Reserve Account and
deposited into the Series 2008-1 Distribution Account or (iii) any amounts to be
drawn on the Series 2008-1 Demand Notes and/or on the Series 2008-1 Letters of
Credit (or withdrawn from the Series 2008-1 Cash Collateral
Account).  On the Distribution Date following each such Determination
Date, the Trustee shall withdraw the amount allocated to the Series 2008-1 Notes
during the Related Month pursuant to Section 3.2(b)(ii) or (c)(ii), as the case
may be, from the Series 2008-1 Collection Account and deposit such amount in the
Series 2008-1 Distribution Account, to be paid to the holders of the Series
2008-1 Notes.

    

    (b)           Decreases.  On
any Business Day during the Series 2008-1 Revolving Period on which a Decrease
is to be made pursuant to Section 2.5, the Trustee shall withdraw from the
Series 2008-1 Excess Collection Account in accordance with the written
instructions of the Administrator, an amount equal to the lesser of (i) the
funds then allocated to the Series 2008-1 Excess Collection Account (after
giving effect to any application pursuant to clauses (i), (ii) and (iii) of
Section 3.2(e)) and (ii) the amount of such Decrease, and deposit such amount in
the Series 2008-1 Distribution Account, to be paid to the Administrative Agent
for distribution in accordance with Section 3.5(f).

    

    (c)           Principal Deficit
Amount.  On each Distribution Date on which the Principal
Deficit Amount is greater than zero, amounts shall be transferred to the Series
2008-1 Distribution Account as follows:

    

    (i)        
   Reserve Account
Withdrawal.  The Administrator shall instruct the Trustee in
writing, prior to 12:00 noon (New York City time) on such Distribution
Date, in the case of a Principal Deficit Amount resulting from a Series 2008-1
Lease Payment Deficit, or prior to 12:00 noon (New York City time) on the second
Business Day prior to such Distribution Date, in the case of any other Principal
Deficit Amount, to withdraw from the Series 2008-1 Reserve Account, an amount
equal to the lesser of (x) the Series 2008-1 Available Reserve Account Amount
and (y) such Principal Deficit Amount and deposit it in the Series 2008-1
Distribution Account on such Distribution Date.

    

    
      
        
           

        

        
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    (ii)           Principal Draws on Series
2008-1 Letters of Credit.  If the Administrator determines on
the Business Day immediately preceding any Distribution Date during the Series
2008-1 Amortization Period that on such Distribution Date there will exist a
Series 2008-1 Lease Principal Payment Deficit, the Administrator shall instruct
the Trustee in writing to draw on the Series 2008-1 Letters of Credit, if any,
as provided below.  Upon receipt of a notice by the Trustee from the
Administra­tor in respect of a Series 2008-1 Lease Principal Payment Deficit
on or prior to 3:00 p.m. (New York City time) on the Business Day
immediately preceding a Distribution Date, the Trustee shall, by 5:00 p.m.
(New York City time) on such Business Day draw an amount equal to the least
of (i) such Series 2008-1 Lease Principal Payment Deficit, (ii) the amount by
which the Principal Deficit Amount for such Distribution Date exceeds the amount
to be deposited in the Series 2008-1 Distribution Account in accordance with
clause (i) of this Section 3.5(c) and (iii) the Series 2008-1 Letter of Credit
Liquidity Amount on the Series 2008-1 Letters of Credit, by presenting to each
Series 2008-1 Letter of Credit Provider a Certificate of Lease Deficit Demand
and shall cause the Lease Deficit Disbursements to be deposited in the Series
2008-1 Distribution Account on such Distribution Date; provided, however, that if the
Series 2008-1 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2008-1 Cash Collateral Account and
deposit in the Series 2008-1 Distribution Account an amount equal to the lesser
of (x) the Series 2008-1 Cash Collat­eral Percentage for such date of the
least of the amounts described in clauses (i), (ii) and (iii) above and (y) the
Series 2008-1 Available Cash Collateral Account Amount on such date and draw an
amount equal to the remainder of such amount on the Series 2008-1 Letters of
Credit.

    

    (iii)          Demand Note
Draw.  If on any Determination Date, the Adminis­trator
determines that the Principal Deficit Amount on the next succeeding Distribution
Date (after giving effect to any withdrawal from the Series 2008-1 Reserve
Account pursuant to Section 3.5(c)(i) on such Distribution Date) will be greater
than zero and there are any Series 2008-1 Letters of Credit on such date, prior
to 10:00 a.m. (New York City time) on the second Business Day prior to such
Distribution Date, the Administrator shall instruct the Trustee in writing to
deliver a Demand Notice to the Demand Note Issuers demanding payment of an
amount equal to the lesser of (A) the Principal Deficit Amount and (B) the
Series 2008-1 Letter of Credit Amount.  The Trustee shall, prior to
12:00 noon (New York City time) on the second Business Day preceding such
Distribution Date, deliver such Demand Notice to the Demand Note Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the defini­tion thereof, without the lapse of a period of 60 consecutive
days) with respect to a Demand Note Issuer shall have occurred and be
continuing, the Trustee shall not be required to deliver such Demand Notice to
such Demand Note Issuer.  The Trustee shall cause the proceeds of any
demand on the Series 2008-1 Demand Notes to be deposited into the Series 2008-1
Distribution Account.

    

    (iv)          Letter of Credit
Draw.  In the event that either (x) on or prior to 10:00 a.m.
(New York City time) on the Business Day prior to such Distribution Date,
any Demand Note Issuer shall have failed to pay to the Trustee or deposit in the
Series 2008-1 Distribution Account the amount specified in such Demand Notice in
whole or in part or (y) due to the occurrence of an Event of Bankruptcy (or the
occurrence of an event described in clause (a) of the definition thereof,
without the lapse of a period of 60 conse­cutive days) with respect to any
Demand Note Issuer, the Trustee shall not have delivered such Demand Notice to
any Demand Note Issuer on the second Business Day preceding such Distribution
Date, then, in the case of (x) or (y) the Trustee shall on such Business Day
draw on the Series 2008-1 Letters of Credit an amount equal to the lesser of
(i) Series 2008-1 Letter of Credit Amount and (ii) the aggregate
amount that the Demand Note Issuers failed to pay under the Series 2008-1 Demand
Notes (or, the amount that the Trustee failed to demand for payment thereunder)
by presenting to each Series 2008-1 Letter of Credit Provider a Certificate of
Unpaid Demand Note Demand; provided, however, that if the
Series 2008-1 Cash Collateral Account has been established and funded, the
Trustee shall withdraw from the Series 2008-1 Cash Collateral Account and
deposit in the
Series 2008-1 Distribution Account an amount equal to the lesser of (x) the
Series 2008-1 Cash Collateral Percentage on such Business Day of the aggregate
amount that the Demand Note Issuers failed to pay under the Series 2008-1 Demand
Notes (or, the amount that the Trustee failed to demand for payment thereunder)
and (y) the Series 2008-1 Available Cash Collateral Account Amount on such
Business Day and draw an amount equal to the remainder of the aggregate amount
that the Demand Note Issuers failed to pay under the Series 2008-1 Demand Notes
(or, the amount that the Trustee failed to demand for payment thereunder) on the
Series 2008-1 Letters of Credit.  The Trustee shall deposit into, or
cause the deposit of, the proceeds of any draw on the Series 2008-1 Letters of
Credit and the proceeds of any withdrawal from the Series 2008-1 Cash Collateral
Account to be deposited in the Series 2008-1 Distribution Account on such
Distribution Date.

    

    
      
        
           

        

        
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    (d)           Series 2008-1 Termination
Date.  The entire Series 2008-1 Invested Amount shall be due
and payable on the Series 2008-1 Termination Date.  In connection
therewith:

    

    (i)         
  Reserve
Account Withdrawal.  If, after giving effect to the deposit
into the Series 2008-1 Distribution Account of the amount to be deposited in
accordance with Section 3.5(a), together with any amounts to be deposited
therein in accordance with Section 3.5(c) on the Series 2008-1 Termination Date,
the amount to be deposited in the Series 2008-1 Distribution Account with
respect to the Series 2008-1 Termination Date is or will be less than the Series
2008-1 Invested Amount, then, prior to 12:00 noon (New York City time) on
the second Business Day prior to the Series 2008-1 Termination Date, the
Administrator shall instruct the Trustee in writing to withdraw from the Series
2008-1 Reserve Account, an amount equal to the lesser of the Series 2008-1
Available Reserve Account Amount and such insufficiency and deposit it in the
Series 2008-1 Distribution Account on the Series 2008-1 Termination
Date.

    

    (ii)           Demand Note
Draw.  If the amount to be deposited in the Series 2008-1
Distribution Account in accordance with Section 3.5(a) together with any amounts
to be deposited therein in accordance with Section 3.5(c) and Section 3.5(d)(i)
on the Series 2008-1 Termination Date is less than the Series 2008-1 Invested
Amount, and there are any Series 2008-1 Letters of Credit on such date, then,
prior to 10:00 a.m. (New York City time) on the second Business Day prior
to the Series 2008-1 Termination Date, the Administrator shall instruct the
Trustee in writing to make a demand (a “Demand Notice”)
substantially in the form attached hereto as Exhibit G on the
Demand Note Issuers for payment under the Series 2008-1 Demand Notes in an
amount equal to the lesser of (i) such insuf­fici­ency and (ii) the
Series 2008-1 Letter of Credit Amount.  The Trustee shall, prior to
12:00 noon (New York City time) on the second Business Day preceding the
Series 2008-1 Termination Date, deliver such Demand Notice to the Demand Note
Issuers; provided, however, that if an
Event of Bankruptcy (or the occurrence of an event described in clause (a) of
the definition thereof, without the lapse of a period of 60 consecu­tive
days) with respect to a Demand Note Issuer shall have occurred and be
contin­uing, the Trustee shall not be required to deliver such Demand Notice
to such Demand Note Issuer.  The Trustee shall cause the proceeds of
any demand on the Series 2008-1 Demand Notes to be deposited into the Series
2008-1 Distribution Account.

    

    
      
        
           

        

        
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    (iii)          Letter of Credit
Draw.  In the event that either (x) on or prior to 10:00 a.m.
(New York City time) on the Business Day immediately preceding any
Distribution Date next succeeding any date on which a Demand Notice has been
transmitted by the Trustee to the Demand Note Issuers pursuant to clause (ii) of
this Section 3.5(d) any Demand Note Issuer shall have failed to pay to the
Trustee or deposit into the Series 2008-1 Distribution Account the amount
specified in such Demand Notice in whole or in part or (y) due to the occurrence
of an Event of Bankruptcy (or the occurrence of an event described in clause (a)
of the defini­tion thereof, without the lapse of a period of 60 consecutive
days) with respect to one or more of the Demand Note Issuers, the Trustee shall
not have delivered such Demand Notice to any Demand Note Issuer on the second
Business Day preceding the Series 2008-1 Termination Date, then, in the case of
(x) or (y) the Trustee shall draw on the Series 2008-1 Letters of Credit by
12:00 noon (New York City time) on such Business Day an amount equal to the
lesser of (a) the amount that the Demand Note Issuers failed to pay under the
Series 2008-1 Demand Notes (or, the amount that the Trustee failed to demand for
payment thereunder) and (b) the Series 2008-1 Letter of Credit Amount on
such Business Day by presenting to each Series 2008-1 Letter of Credit Provider
a Certificate of Unpaid Demand Note Demand; provided, however, that if the Series
2008-1 Cash Collateral Account has been established and funded, the Trustee
shall withdraw from the Series 2008-1 Cash Collateral Account and deposit in the
Series 2008-1 Distribution Account an amount equal to the lesser of (x) the
Series 2008-1 Cash Collateral Percentage on such Business Day of the amount that
the Demand Note Issuers failed to pay under the Series 2008-1 Demand Notes (or,
the amount that the Trustee failed to demand for payment thereunder) and (y) the
Series 2008-1 Available Cash Collateral Account Amount on such Business Day and
draw an amount equal to the remainder of the amount that the Demand Note Issuers
failed to pay under the Series 2008-1 Demand Notes (or, the amount that the
Trustee failed to demand for payment thereunder) on the Series 2008-1 Letters of
Credit.  The Trustee shall deposit, or cause the deposit of, the
proceeds of any draw on the Series 2008-1 Letters of Credit and the proceeds of
any withdrawal from the Series 2008-1 Cash Collateral Account to be deposited in
the Series 2008-1 Distribution Account on such Distribution Date.

    

    (e)           Distribution.  On
each Distribution Date occurring on or after the date a withdrawal is made from
the Series 2008-1 Collection Account pursuant to Section 3.5(a) or amounts are
deposited in the Series 2008-1 Distribution Account pursuant to Section 3.5(c)
and/or (d), the Paying Agent shall, in accordance with Section 6.1 of the Base
Indenture, pay to the Administrative Agent for the accounts of the Purchaser
Groups from the Series 2008-1 Distribution Account the amount deposited therein
pursuant to Sec­tion 3.5(a), (c) and/or (d).

    

    
      
        
           

        

        
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    (f)          
 Payment of Funds
from Decreases.  Upon the receipt of funds on account of a
Decrease from the Trustee, the Administrative Agent shall pay first, to each
Funding Agent with respect to a Non-Extending Purchaser Group a pro rata amount of the
Decrease, based on the Purchaser Group Invested Amounts with respect to such
Non-Extending Purchaser Group relative to the Purchaser Group Invested Amounts
with respect to all Non-Extending Purchaser Groups on the date of such Decrease
and second, to each Funding Agent with respect to a Purchaser Group, such
Purchaser Group’s Pro Rata Share of the remaining amount of such
Decrease.  Each Purchaser Group’s share of the amount of any Decrease
on any Business Day shall be allocated by such Purchaser Group first to reduce
the Available CP Funding Amount with respect to such Purchaser Group and the
Available APA Bank Funding Amount with respect to such Purchaser Group on such
Business Day and then to reduce the portion of the Purchaser Group Invested
Amount with respect to such Purchaser Group allocated to CP Tranches and
Eurodollar Tranches in such order as such Purchaser Group may select in order to
minimize costs payable pursuant to Section 7.3.  Upon the receipt of
funds from the Trustee pursuant to Sections 3.5(a), (c) and/or (d) on any
Distribution Date, the Administrative Agent shall pay to each Funding Agent with
respect to a Purchaser Group, such Purchaser Group’s Pro Rata Share of such
funds.

    

    Section
3.6.  Administrator’s Failure to
Instruct the Trustee to Make a Deposit or Payment.  If the
Administrator fails to give notice or instructions to make any payment from or
deposit into the Collection Account required to be given by the
Adminis­trator, at the time speci­fied in the Administration Agreement
or any other Related Document (including appli­cable grace periods), the
Trustee shall make such payment or deposit into or from the Collection Account
without such notice or instruction from the Administrator, provided that the
Adminis­tra­tor, upon request of the Trustee, promptly provides the
Trustee with all information necessary to allow the Trustee to make such a
payment or deposit.  When any payment or deposit hereunder or under
any other Related Document is required to be made by the Trustee or the Paying
Agent at or prior to a specified time, the Administrator shall deliver any
applicable written instructions with respect thereto reasonably in advance of
such specified time.

    

    Section
3.7.  Series
2008-1 Reserve Account.

    

    (a)           Establishment of Series
2008-1 Reserve Account.  ABRCF shall establish and maintain in
the name of the Series 2008-1 Agent for the benefit of the Series 2008-1
Noteholders, or cause to be established and maintained, an account (the “Series 2008-1 Reserve
Account”), bearing a designation clearly indicating that the funds
deposited therein are held for the benefit of the Series 2008-1
Noteholders.  The Series 2008-1 Reserve Account shall be maintained
(i) with a Qualified Institution, or (ii) as a segre­gated trust account
with the corporate trust depart­ment of a depository institution or trust
com­pany having corporate trust powers and acting as trustee for funds
deposited in the Series 2008-1 Reserve Account; provided that, if at
any time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depositary institution or trust
com­pany shall be reduced to below “BBB-” by Standard & Poors or “Baa2”
by Moody’s, then ABRCF shall, within 30 days of such reduction, establish a new
Series 2008-1 Reserve Account with a new Qualified Institution.  If
the Series 2008-1 Reserve Account is not maintained in accordance with the
pre­vious sentence, ABRCF shall establish a new Series 2008-1 Reserve
Account, within ten (10) Business Days after obtaining knowledge of such fact,
which complies with such sentence, and shall instruct the Series 2008-1 Agent in
writing to transfer all cash and investments from the non-qualifying Series
2008-1 Reserve Account into the new Series 2008-1 Reserve
Account.  Initially, the Series 2008-1 Reserve Account will be
established with The Bank of New York Mellon.

    

    
      
        
           

        

        
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    (b)           Administration of the Series
2008-1 Reserve Account.  The Administrator may instruct the
institution maintaining the Series 2008-1 Reserve Account to invest funds on
deposit in the Series 2008-1 Reserve Account from time to time in Permitted
Investments; provided, however, that any
such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2008-1 Reserve Account is held with
the Paying Agent, then such investment may mature on such Distribution Date and
such funds shall be available for withdrawal on or prior to such Distribution
Date.  All such Permitted Investments will be credited to the Series
2008-1 Reserve Account and any such Permitted Investments that constitute
(i) physical property (and that is not either a United States security
entitlement or a security entitlement) shall be physically delivered to the
Trustee; (ii) United States security entitlements or security entitlements
shall be controlled (as defined in Section 8-106 of the New York UCC) by
the Trustee pending maturity or disposition, and (iii) uncertificated
securities (and not United States security entitlements) shall be delivered to
the Trustee by causing the Trustee to become the registered holder of such
securities.  The Trustee shall, at the expense of ABRCF, take such
action as is required to maintain the Trustee’s security interest in the
Permitted Investments credited to the Series 2008-1 Reserve
Account.  ABRCF shall not direct the Trustee to dispose of (or permit
the disposal of) any Permitted Investments prior to the maturity thereof to the
extent such disposal would result in a loss of purchase price of such Permitted
Investments.  In the absence of written investment instructions
hereunder, funds on deposit in the Series 2008-1 Reserve Account shall remain
uninvested.

    

    (c)           Earnings from Series 2008-1
Reserve Account.  All interest and earnings (net of losses and
investment expenses) paid on funds on deposit in the Series 2008-1 Reserve
Account shall be deemed to be on deposit therein and available for
distribution.

    

    (d)           Series 2008-1 Reserve
Account Constitutes Additional Collateral for Series 2008-1
Notes.  In order to secure and provide for the repayment and
payment of the ABRCF Obligations with respect to the Series 2008-1 Notes, ABRCF
hereby grants a security interest in and assigns, pledges, grants, transfers and
sets over to the Trustee, for the benefit of the Series 2008-1 Noteholders, all
of ABRCF’s right, title and interest in and to the following (whether now or
hereafter existing or acquired):  (i) the Series 2008-1 Reserve
Account, includ­ing any security entitlement thereto; (ii) all funds on
deposit therein from time to time; (iii) all certificates and instruments, if
any, representing or evidencing any or all of the Series 2008-1 Reserve Account
or the funds on deposit therein from time to time; (iv) all investments
made at any time and from time to time with monies in the Series 2008-1 Reserve
Account, whether consti­tuting securities, instruments, general intangibles,
investment property, financial assets or other property; (v) all interest,
dividends, cash, instruments and other property from time to time received,
receivable or otherwise distributed in respect of or in exchange for the Series
2008-1 Reserve Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vi) all proceeds of any and all of the
foregoing, including, without limitation, cash (the items in the foregoing
clauses (i) through (vi) are referred to, collectively, as the “Series 2008-1 Reserve
Account Collateral”).  The Trustee shall possess all right,
title and interest in and to all funds on deposit from time to time in the
Series 2008-1 Reserve Account and in all proceeds thereof, and shall be the only
person authorized to originate entitle­ment orders in respect of the Series
2008-1 Reserve Account.  The Series 2008-1 Reserve Account Collateral
shall be under the sole dominion and control of the Trustee for the benefit of
the Series 2008-1 Noteholders.  The Series 2008-1 Agent hereby agrees
(i) to act as the securities intermediary (as defined in Section 8-102(a)(14) of
the New York UCC) with respect to the Series 2008-1 Reserve Account; (ii)
that its jurisdiction as securities intermediary is New York; (iii) that each
item of property (whether investment property, financial asset, security,
instrument or cash) credited to the Series 2008-1 Reserve Account shall be
treated as a financial asset (as defined in Section 8-102(a)(9) of the
New York UCC) and (iv) to comply with any entitlement order (as defined in
Section 8-102(a)(8) of the New York UCC) issued by the
Trustee.

    

    
      
        
           

        

        
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    (e)           Preference Amount
Withdrawals from the Series 2008-1 Reserve Account or the Series 2008-1 Cash
Collateral Account.  If a member of a Purchaser Group notifies
the Trustee in writing of the existence of a Preference Amount, then, subject to
the satisfaction of the conditions set forth in the next succeeding sentence, on
the Business Day on which those conditions are first satisfied, the Trustee
shall withdraw from either (x) prior to the Series 2008-1 Letter of Credit
Termination Date, the Series 2008-1 Reserve Account or (y) on or after the
Series 2008-1 Letter of Credit Termination Date, the Series 2008-1 Cash
Collateral Account and pay to the Funding Agent for such member an amount equal
to such Preference Amount.  Prior to any withdrawal from the Series
2008-1 Reserve Account or the Series 2008-1 Cash Collateral Account pursuant to
this Section 3.7(e), the Trustee shall have received (i) a certified copy
of the order requiring the return of such Preference Amount; (ii) an opinion of
counsel satisfactory to the Trustee that such order is final and not subject to
appeal; and (iii) a release as to any claim against ABRCF by the Purchaser Group
for any amount paid in respect of such Preference Amount.  On the
Business Day after Series 2008-1 Letter of Credit Termination Date, the Trustee
shall transfer the amount on deposit in the Series 2008-1 Reserve Account to the
Series 2008-1 Cash Collateral Account.

    

    (f)           Series 2008-1 Reserve
Account Surplus.  In the event that the Series 2008-1
Reserve Account Surplus on any Distribution Date, after giving effect to all
withdrawals from the Series 2008-1 Reserve Account, is greater than zero, the
Trustee, acting in accordance with the written instructions of the Administrator
pursuant to the Administration Agreement, shall withdraw from the Series 2008-1
Reserve Account an amount equal to the Series 2008-1 Reserve Account Surplus and
shall pay such amount to ABRCF.

    

    (g)          Termination of Series 2008-1
Reserve Account.  Upon the termination of the Indenture
pursuant to Section 11.1 of the Base Indenture, the Trustee, acting in
accordance with the written instructions of the Administrator, after the prior
payment of all amounts owing to the Series 2008-1 Noteholders and payable from
the Series 2008-1 Reserve Account as provided herein, shall withdraw from the
Series 2008-1 Reserve Account all amounts on deposit therein for payment to
ABRCF.

    

    
      
        
           

        

        
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    Section
3.8.  Series
2008-1 Letters of Credit and Series 2008-1 Cash Collateral
Account.

    

    (a)           Series 2008-1 Letters of
Credit and Series 2008-1 Cash Collateral Account Constitute Additional
Collateral for Series 2008-1 Notes.  In order to secure and
provide for the repayment and payment of ABRCF’s obligations with respect to the
Series 2008-1 Notes, ABRCF hereby grants a security interest in and assigns,
pledges, grants, transfers and sets over to the Trustee, for the benefit of the
Series 2008-1 Noteholders, all of ABRCF’s right, title and interest in and to
the following (whether now or hereafter existing or acquired): (i) each
Series 2008-1 Letter of Credit; (ii) the Series 2008-1 Cash Collateral
Account, including any security entitle­ment thereto; (iii) all funds
on deposit in the Series 2008-1 Cash Collateral Account from time to time;
(iv) all certificates and instruments, if any, representing or evidencing
any or all of the Series 2008-1 Cash Collateral Account or the funds on deposit
therein from time to time; (v) all investments made at any time and from
time to time with monies in the Series 2008-1 Cash Collateral Account, whether
constituting securities, instruments, general intangibles, investment property,
financial assets or other property; (vi) all interest, dividends, cash,
instruments and other property from time to time received, receivable or
otherwise distributed in respect of or in exchange for the Series 2008-1 Cash
Collateral Account, the funds on deposit therein from time to time or the
investments made with such funds; and (vii) all proceeds of any and all of
the foregoing, including, without limitation, cash (the items in the foregoing
clauses (ii) through (vii) are referred to, collectively, as the “Series 2008-1 Cash
Collateral Account Collateral”).  The Trustee shall, for the
benefit of the Series 2008-1 Noteholders, possess all right, title and interest
in all funds on deposit from time to time in the Series 2008-1 Cash Collateral
Account and in all
proceeds thereof, and shall be the only person authorized to originate
entitlement orders in respect of the Series
2008-1 Cash Collateral Account.  The Series 2008-1 Cash Collateral
Account shall be under the sole dominion and control of the Trustee for the
benefit of the Series 2008-1 Noteholders.  The Series 2008-1 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2008-1 Cash
Collateral Account; (ii) that its jurisdiction as securities intermediary is New
York; (iii) that each item of property (whether investment property, financial
asset, security, instrument or cash) credited to the Series 2008-1 Cash
Collateral Account shall be treated as a financial asset (as defined in Section
8-102(a)(9) of the New York UCC) and (iv) to comply with any entitlement
order (as defined in Section 8-102(a)(8) of the New York UCC) issued by the
Trustee.

    

    (b)        
  Series
2008-1 Letter of Credit Expiration Date.  If prior to the date
which is ten (10) days prior to the then scheduled Series 2008-1 Letter of
Credit Expiration Date with respect to any Series 2008-1 Letter of Credit,
excluding the amount available to be drawn under such Series 2008-1 Letter of
Credit but taking into account each substitute Series 2008-1 Letter of Credit
which has been obtained from a Series 2008-1 Eligible Letter of Credit Provider
and is in full force and effect on such date, the Series 2008-1 Enhancement
Amount would be equal to or more than the Series 2008-1 Required Enhancement
Amount and the Series 2008-1 Liquidity Amount would be equal to or greater than
the Series 2008-1 Required Liquidity Amount, then the Administrator shall notify
the Trustee in writing no later than two Business Days prior to such Series
2008-1 Letter of Credit Expiration Date of such determination.  If
prior to the date which is ten (10) days prior to the then scheduled Series
2008-1 Letter of Credit Expiration Date with respect to any Series 2008-1 Letter
of Credit, excluding the amount available to be drawn under such Series 2008-1
Letter of Credit but taking into account each substitute Series 2008-1 Letter of
Credit which has been obtained from a Series 2008-1 Eligible Letter of Credit
Provider and is in full force and effect on such date, the Series 2008-1
Enhancement Amount would be less than the Series 2008-1 Required Enhancement
Amount or the Series 2008-1 Liquidity Amount would be less than the Series
2008-1 Required Liquidity Amount, then the Administrator shall notify the
Trustee in writing no later than two Business Days prior to such Series 2008-1
Letter of Credit Expiration Date of (x) the greater of (A) the excess, if any,
of the Series 2008-1 Required Enhancement Amount over the Series 2008-1
Enhancement Amount, excluding the available amount under such expiring Series
2008-1 Letter of Credit but taking into account any substitute Series 2008-1
Letter of Credit which has been obtained from a Series 2008-1 Eligible Letter of
Credit Provider and is in full force and effect, on such date, and (B) the
excess, if any, of the Series 2008-1 Required Liquidity Amount over the Series
2008-1 Liquidity Amount, excluding the available amount under such expiring
Series 2008-1 Letter of Credit but taking into account any substitute Series
2008-1 Letter of Credit which has been obtained from a Series 2008-1 Eligible
Letter of Credit Provider and is in full force and effect, on such date, and (y)
the amount available to be drawn on such expiring Series 2008-1 Letter of Credit
on such date.  Upon receipt of such notice by the Trustee on or prior
to 10:00 a.m. (New York City time) on any Business Day, the Trustee shall,
by 12:00 noon (New York City time) on such Business Day (or, in the case of
any notice given to the Trustee after 10:00 a.m. (New York City time), by
12:00 noon (New York City time) on the next following Business Day), draw
the lesser of the amounts set forth in clauses (x) and (y) above on such
expiring Series 2008-1 Letter of Credit by presenting a Certificate of
Termination Demand and shall cause the Termination Disbursement to be deposited
in the Series 2008-1 Cash Collateral Account.

    

    
      
        
           

        

        
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    If the
Trustee does not receive the notice from the Administrator described in the
first paragraph of this Section 3.8(b) on or prior to the date that is two
Business Days prior to each Series 2008-1 Letter of Credit Expiration Date, the
Trustee shall, by 12:00 noon (New York City time) on such Business Day draw
the full amount of such Series 2008-1 Letter of Credit by presenting a
Certificate of Termination Demand and shall cause the Termination Disbursement
to be deposited in the Series 2008-1 Cash Collateral Account.

    

    (c)           Series 2008-1 Letter of
Credit Providers.  The Administrator shall notify the Trustee
in writing within one Business Day of becoming aware that (i) the long-term
senior unsecured debt credit rating of any Series 2008-1 Letter of Credit
Provider has fallen below “A” as determined by Standard & Poor’s or “A1” as
determined by Moody’s or (ii) the short-term senior unsecured debt credit rating
of any Series 2008-1 Letter of Credit Provider has fallen below “A-1” as
determined by Standard & Poor’s or “P-1” as determined by
Moody’s.  At such time the Administrator shall also notify the Trustee
of (i) the greater of (A) the excess, if any, of the Series 2008-1 Required
Enhancement Amount over the Series 2008-1 Enhancement Amount, excluding the
available amount under the Series 2008-1 Letter of Credit issued by such Series
2008-1 Letter of Credit Provider, on such date, and (B) the excess, if any, of
the Series 2008-1 Required Liquidity Amount over the Series 2008-1 Liquidity
Amount, excluding the available amount under such Series 2008-1 Letter of
Credit, on such date, and (ii) the amount available to be drawn on such
Series 2008-1 Letter of Credit on such date.  Upon receipt of such
notice by the Trustee on or prior to 10:00 a.m. (New York City time) on any
Business Day, the Trustee shall, by 12:00 noon (New York City time) on such
Business Day (or, in the case of any notice given to the Trustee after 10:00
a.m. (New York City time), by 12:00 noon (New York City time) on the
next following Business Day), draw on such Series 2008-1 Letter of Credit in an
amount equal to the lesser of the amounts in clause (i) and clause
(ii) of the immediately preceding sen­tence on such Business Day by
presenting a Certificate of Termination Demand and shall cause the Termination
Disbursement to be deposited in the Series 2008-1 Cash Collateral
Account.

    

    
      
        
           

        

        
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    (d)           Draws on the Series 2008-1
Letters of Credit.  If there is more than one Series 2008-1
Letter of Credit on the date of any draw on the Series 2008-1 Letters of Credit
pursuant to the terms of this Supplement, the Administrator shall instruct the
Trustee, in writing, to draw on each Series 2008-1 Letter of Credit in an amount
equal to the LOC Pro Rata Share of the Series 2008-1 Letter of Credit Provider
issuing such Series 2008-1 Letter of Credit of the amount of such draw on the
Series 2008-1 Letters of Credit.

    

    (e)           Establishment of Series
2008-1 Cash Collateral Account.  On or prior to the date of any
drawing under a Series 2008-1 Letter of Credit pursuant to Section 3.8(b)
or (c) above, ABRCF shall establish and maintain in the name of the Trustee for
the benefit of the Series 2008-1 Noteholders, or cause to be estab­lished
and maintained, an account (the “Series 2008-1 Cash
Collateral Account”), bearing a designation clearly indicating that the
funds deposited therein are held for the benefit of the Series 2008-1
Noteholders.  The Series 2008-1 Cash Collateral Account shall be
maintained (i) with a Qualified Institution, or (ii) as a
segre­gated trust account with the corporate trust depart­ment of a
depository institution or trust company having corporate trust powers and
act­ing as trustee for funds deposited in the Series 2008-1 Cash Collateral
Account; provided that, if at
any time such Qualified Institution is no longer a Qualified Institution or the
credit rating of any securities issued by such depository institution or trust
company shall be reduced to below “BBB-” by Standard & Poor’s or “Baa3” by
Moody’s, then ABRCF shall, within 30 days of such reduction, establish a new
Series 2008-1 Cash Collateral Account with a new Qualified Institution or a new
segre­gated trust account with the corporate trust department of a
depository institution or trust company having corporate trust powers and acting
as trustee for funds deposited in the Series 2008-1 Cash Collateral
Account.  If a new Series 2008-1 Cash Collateral Account is
established, ABRCF shall instruct the Trustee in writing to transfer all cash
and invest­ments from the non-qualifying Series 2008-1 Cash Collateral
Account into the new Series 2008-1 Cash Collateral Account.

    

    (f)           Administration of the Series
2008-1 Cash Collateral Account.  ABRCF may instruct (by
standing instructions or otherwise) the institution maintaining the Series
2008-1 Cash Collateral Account to invest funds on deposit in the Series 2008-1
Cash Collateral Account from time to time in Permitted Investments; provided, however, that any
such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2008-1 Cash Collateral Account is
held with the Paying Agent, in which case such
investment may mature on such Distribution Date so long as such funds shall be
available for withdrawal on or prior to such Distribution Date.  All
such Permitted Investments will be credited to the Series 2008-1 Cash Collateral
Account and any such Permitted Investments that constitute (i) physical
property (and that is not either a United States security entitlement or a
security entitlement) shall be physically delivered to the Trustee;
(ii) United States security entitlements or security entitlements shall be
controlled (as defined in Section 8-106 of the New York UCC) by the Trustee
pending maturity or disposition, and (iii) uncertificated securities (and
not United States security entitlements) shall be delivered to the Trustee by
causing the Trustee to become the registered holder of such
securities.  The Trustee shall, at the expense of ABRCF, take such
action as is required to maintain the Trustee’s security interest in the
Permitted Investments credited to the Series 2008-1 Cash Collateral
Account.  ABRCF shall not direct the Trustee to dispose of (or permit
the disposal of) any Permitted Investments prior to the maturity thereof to the
extent such disposal would result in a loss of the purchase
price of such Permitted Investment.  In the absence of written
investment instructions hereunder, funds on deposit in the Series 2008-1 Cash
Collateral Account shall remain uninvested.

    

    
      
        
           

        

        
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    (g)           Earnings from Series 2008-1
Cash Collateral Account.  All interest and earnings (net of
losses and investment expenses) paid on funds on deposit in the Series 2008-1
Cash Collateral Account shall be deemed to be on deposit therein and available
for distribution.

    

    (h)           Series 2008-1 Cash
Collateral Account Surplus.  In the event that the Series
2008-1 Cash Collateral Account Surplus on any Distribution Date (or, after the
Series 2008-1 Letter of Credit Termination Date, on any date) is greater than
zero, the Trustee, acting in accordance with the written instructions of the
Administrator, shall with­draw from the Series 2008-1 Cash Collateral
Account an amount equal to the Series 2008-1 Cash Collateral Account Surplus and
shall pay such amount:  first, to the Series
2008-1 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2008-1 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2008-1 Reimbursement
Agreement, and, second, to ABRCF any
remaining amount.

    

    (i)        
   Termination of Series 2008-1
Cash Collateral Account.  Upon the termina­tion of this
Supplement in accordance with its terms, the Trustee, acting in accordance with
the written instructions of the Administrator, after the prior payment of all
amounts owing to the Series 2008-1 Noteholders and payable from the Series
2008-1 Cash Collateral Account as provided herein, shall withdraw from the
Series 2008-1 Cash Collateral Account all amounts on deposit therein (to the
extent not withdrawn pursuant to Section 3.8(h) above) and shall pay such
amounts:  first, to the Series
2008-1 Letter of Credit Providers to the extent of any unreimbursed drawings
under the related Series 2008-1 Reimbursement Agreement, for application in
accordance with the provisions of the related Series 2008-1 Reimbursement
Agreement, and, second, to ABRCF any
remaining amount.

    

    (j)        
   Termination Date Demands on
the Series 2008-1 Letters of Credit.  Prior to 10:00 a.m.
(New York City time) on the Business Day immediately succeeding the Series
2008-1 Letter of Credit Termination Date, the Administrator shall determine the
Series 2008-1 Demand Note Payment Amount as of the Series 2008-1 Letter of
Credit Termination Date.  If the Series 2008-1 Demand Note Payment
Amount is greater than zero, then the Administrator shall instruct the Trustee
in writing to draw on the Series 2008-1 Letters of Credit.  Upon
receipt of any such notice by the Trustee on or prior to 11:00 a.m.
(New York City time) on a Business Day, the Trustee shall, by 12:00 noon
(New York City time) on such Business Day draw an amount equal to the
lesser of (i) the excess of the Series 2008-1 Demand Note Payment Amount
over the Series 2008-1 Available Reserve Account Amount (prior to giving effect
to any transfer to the Series 2008-1 Cash Collateral Account pursuant to Section
3.7(e) on such date) and (ii) the Series 2008-1 Letter of Credit Liquidity
Amount on the Series 2008-1 Letters of Credit by presenting to each Series
2008-1 Letter of Credit Provider a Certificate of Termination Date Demand; provided, however, that if the
Series 2008-1 Cash Collateral Account has been established and funded, the
Trustee shall draw an amount equal to the product of (a) 100% minus the Series
2008-1 Cash Collateral Percentage and (b) the lesser of the amounts referred to
in clause (i) or (ii) on such Business Day on the Series 2008-1 Letters of
Credit as calculated by the Administrator and provided in writing to the
Trustee.  The Trustee shall cause the Termination Date Disbursement to
be deposited in the Series 2008-1 Cash Collateral Account.

    

    
      
        
           

        

        
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    Section
3.9.  Series
2008-1 Distribution Account.

    

    (a)           Establishment of Series
2008-1 Distribu­tion Account.  The Trustee shall establish
and maintain in the name of the Series 2008-1 Agent for the benefit of the
Series 2008-1 Noteholders, or cause to be established and maintained, an
account (the “Series
2008-1 Distribution Account”), bearing a designa­tion clearly
indicating that the funds deposited therein are held for the benefit of the
Series 2008-1 Noteholders.  The Series 2008-1 Distribution Account
shall be maintained (i) with a Qualified Institu­tion, or (ii) as a
segregated trust account with the corporate trust department of a depository
institution or trust company having corporate trust powers and acting as trustee
for funds deposited in the Series 2008-1 Distri­bution Account; provided that, if at
any time such Quali­fied Institution is no longer a Qualified Institution or
the credit rating of any securities issued by such depos­itary institution
or trust company shall be reduced to below “BBB-” by Standard & Poor’s or
“Baa3” by Moody’s, then ABRCF shall, within 30 days of such reduction, establish
a new Series 2008-1 Distribution Account with a new Qualified
Institu­tion.  If the Series 2008-1 Distribution Account is not
maintained in accordance with the previous sen­tence, ABRCF shall establish
a new Series 2008-1 Distribution Account, within ten (10) Business Days after
obtaining knowledge of such fact, which complies with such sentence, and shall
instruct the Series 2008-1 Agent in writing to transfer all cash and
investments from the non-qualify­ing Series 2008-1 Distribution Account
into the new Series 2008-1 Distribution Account.  Initially, the
Series 2008-1 Distribu­tion Account will be established with The Bank of
New York Mellon.

    

    (b)           Administration of the Series
2008-1 Dis­tribution Account.  The Administrator may
instruct the institution maintaining the Series 2008-1 Distribution Account to
invest funds on deposit in the Series 2008-1 Distribution Account from time to
time in Permitted Investments; provided, however, that any
such investment shall mature not later than the Business Day prior to the
Distribution Date following the date on which such funds were received, unless
any Permitted Investment held in the Series 2008-1 Distribution Account is held
with the Paying Agent, then such investment may mature on such Distribution Date
and such funds shall be available for withdrawal on or prior to such
Distribution Date.  All such Permitted Investments will be credited to
the Series 2008-1 Distribution Account and any such Permitted Investments that
constitute (i) physical property (and that is not either a United States
security entitlement or a security entitlement) shall be physically delivered to
the Trustee; (ii) United States security entitlements or security
entitlements shall be controlled (as defined in Section 8-106 of the
New York UCC) by the Trustee pending maturity or disposition, and
(iii) uncertificated securities (and not United States security
entitlements) shall be delivered to the Trustee by causing the Trustee to become
the registered holder of such securities.  The Trustee shall, at the
expense of ABRCF, take such action as is required to maintain the Trustee’s
security interest in the Permitted Investments credited to the Series 2008-1
Distribution Account.  ABRCF shall not direct the Trustee to dispose
of (or permit the disposal of) any Permitted Investments prior to the maturity
thereof to the extent such disposal would result in a loss of purchase price of
such Permitted Investments.  In the absence of written investment
instructions hereunder, funds on deposit in the Series 2008-1 Distribution
Account shall remain uninvested.

    

    
      
        
           

        

        
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    (c)           Earnings from Series 2008-1
Distribution Account.  All interest and earn­ings (net of
losses and investment expenses) paid on funds on deposit in the Series 2008-1
Distribution Account shall be deemed to be on deposit and available for
distribution.

    

    (d)           Series 2008-1 Distribution
Account Constitutes Additional Collateral for Series 2008-1
Notes.  In order to secure and provide for the repayment and
payment of the ABRCF Obligations with respect to the Series 2008-1 Notes, ABRCF
hereby grants a security interest in and assigns, pledges, grants, transfers and
sets over to the Trustee, for the benefit of the Series 2008-1 Noteholders, all
of ABRCF’s right, title and interest in and to the following (whether now or
hereafter existing or acquired):  (i) the Series 2008-1
Distri­bution Account, including any security entitlement thereto; (ii) all
funds on deposit therein from time to time; (iii) all certificates and
instruments, if any, representing or evidencing any or all of the Series 2008-1
Distribution Account or the funds on deposit therein from time to time; (iv) all
investments made at any time and from time to time with monies in the Series
2008-1 Distribution Account, whether constituting securities, instruments,
general intangibles, invest­ment property, financial assets or other
property; (v) all interest, dividends, cash, instruments and other property from
time to time received, receivable or otherwise distributed in respect of or in
exchange for the Series 2008-1 Distribution Account, the funds on deposit
therein from time to time or the invest­ments made with such funds; and (vi)
all proceeds of any and all of the fore­going, including, without
limitation, cash (the items in the foregoing clauses (i) through (vi) are
referred to, collec­tively, as the “Series 2008-1 Distribution
Account Collateral”).  The Trustee shall possess all right,
title and interest in all funds on deposit from time to time in the Series
2008-1 Distribution Account and in and to all proceeds thereof, and shall be the
only person authorized to originate entitlement orders in respect of the Series
2008-1 Distribution Account.  The Series 2008-1 Distribution Account
Collateral shall be under the sole dominion and control of the Trustee for the
benefit of the Series 2008-1 Noteholders.  The Series 2008-1 Agent
hereby agrees (i) to act as the securities intermediary (as defined in Section
8-102(a)(14) of the New York UCC) with respect to the Series 2008-1
Distribution Account; (ii) that its jurisdiction as securities intermediary is
New York; (iii) that each item of property (whether investment property,
financial asset, security, instrument or cash) credited to the Series 2008-1
Distribution Account shall be treated as a financial asset (as defined in
Section 8-102(a)(9) of the New York UCC) and (iv) to comply with any
entitlement order (as defined in Section 8-102(a)(8) of the New York UCC)
issued by the Trustee.

    

    Section
3.10.  Series 2008-1 Demand Notes
Constitute Additional Collateral for Series 2008-1 Notes.  In
order to secure and provide for the repayment and payment of the obligations
with respect to the Series 2008-1 Notes, ABRCF hereby grants a security interest
in and assigns, pledges, grants, transfers and sets over to the Trustee, for the
benefit of the Series 2008-1 Noteholders, all of ABRCF’s right, title and
interest in and to the follow­ing (whether now or hereafter existing or
acquired):  (i) the Series 2008-1 Demand Notes; (ii) all
certificates and instruments, if any, representing or evidencing the Series
2008-1 Demand Notes; and (iii) all proceeds of any and all of the
foregoing, including, without limitation, cash.  On the date hereof,
ABRCF shall deliver to the Trustee, for the benefit of the Series 2008-1
Noteholders, each Series 2008-1 Demand Note, endorsed in blank.  The
Trustee, for the benefit of the Series 2008-1 Noteholders, shall be the only
Person authorized to make a demand for payments on the Series 2008-1 Demand
Notes.

    

    
      
        
           

        

        
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    Section
3.11.    Series 2008-1 Interest Rate
Caps.  (a)  On the Series 2008-1 Closing Date, ABRCF
shall acquire one or more interest rate caps (each a “Series 2008-1 Interest Rate
Cap”) from a Qualified Interest Rate Cap Counterparty.  On the
Series 2008-1 Closing Date, the aggregate notional amount of all Series 2008-1
Interest Rate Caps shall equal the Series 2008-1 Maximum Invested Amount, and
the aggregate notional amount of all Series 2008-1 Interest Rate Caps may be
reduced pursuant to the related Series 2008-1 Interest Rate Cap to the extent
that the Series 2008-1 Maximum Invested Amount is reduced after the Series
2008-1 Closing Date.  ABRCF shall acquire one or more additional
Series 2008-1 Interest Rate Caps in connection with any increase of the Series
2008-1 Maximum Invested Amount such that the aggregate notional amounts of all
Series 2008-1 Interest Rate Caps shall equal the Series 2008-1 Maximum Invested
Amount after giving effect to such increase.  The strike rate of each
Series 2008-1 Interest Rate Cap shall not be greater than 5.0%.  Each
Series 2008-1 Interest Rate Cap shall have a term that shall extend to at least
the Series 2008-1 Termination Date.

    

    (b)           If,
at any time, an Interest Rate Cap Counterparty is not a Qualified Interest Rate
Cap Counterparty, then ABRCF shall cause the Interest Rate Cap Counterparty
within 30 days following such occurrence, at the Interest Rate Cap
Counterparty’s expense, to do one of the following (the choice of such action to
be determined by the Interest Rate Cap Counterparty) (i) obtain a replacement
interest rate cap on the same terms as the Series 2008-1 Interest Rate Cap from
a Qualified Interest Rate Cap Counterparty and simultaneously with such
replacement ABRCF shall terminate the Series 2008-1 Interest Rate Cap being
replaced, (ii) obtain a guaranty from, or contingent agreement of, another
person who qualifies as a Qualified Interest Rate Cap Counterparty to honor the
Interest Rate Cap Counterparty’s obligations under the Series 2008-1 Interest
Rate Cap in form and substance satisfactory to the Administrative Agent or (iii)
post and maintain collateral satisfactory to the Administrative Agent; provided that no
termination of the Series 2008-1 Interest Rate Cap shall occur until ABRCF has
entered into a replacement Interest Rate Cap.  Each Series 2008-1
Interest Rate Cap must provide that if the Interest Rate Cap Counterparty is
required to take any of the actions described in clauses (i), (ii) or (iii) of
the preceding sentence and such action is not taken within 30 days, then the
Interest Rate Cap Counterparty must, until a replacement Series 2008-1 Interest
Rate Cap is executed and in effect, collateralize its obligations under such
Series 2008-1 Interest Rate Cap in an amount equal to the greatest of (i) the
marked to market value of such Series 2008-1 Interest Rate Cap, (ii) the next
payment due from the Interest Rate Cap Counterparty and (iii) 1% of the notional
amount of such Series 2008-1 Interest Rate Cap.

    

    (c)           To
secure payment of all obligations to the Series 2008-1 Noteholders, ABRCF grants
a security interest in, and assigns, pledges, grants, transfers and sets over to
the Trustee, for the benefit of the Series 2008-1 Noteholders, all of ABRCF’s
right, title and interest in the Series 2008-1 Interest Rate Caps and all
proceeds thereof (the “Series 2008-1 Interest Rate
Cap Collateral”).  ABRCF shall require all Series 2008-1
Interest Rate Cap Proceeds to be paid to, and the Trustee shall allocate all
Series 2008-1 Interest Rate Cap Proceeds to, the Series 2008-1 Accrued Interest
Account of the Series 2008-1 Collection Account.

    

    
      
        
           

        

        
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    Section
3.12.  Payments to Funding Agents
or Purchaser Groups.  Notwithstanding anything to the contrary
herein or in the Base Indenture, amounts distributable by ABRCF, the Trustee,
the Paying Agent or the Administrative Agent to a Funding Agent for the account
of its related Purchaser Group (or amounts distributable by any such Person
directly to such Purchaser Group) shall be paid by wire transfer of immediately
available funds no later than 3:00 p.m. (New York time) for credit to the
account or accounts designated by such Funding Agent.  Notwithstanding
the foregoing, the Administrative Agent shall not be so obligated unless the
Administrative Agent shall have received the funds by 12:00 noon (New York
City time).

    

    ARTICLE
IV

    

    AMORTIZATION
EVENTS

    

    In
addition to the Amortization Events set forth in Section 9.1 of the Base
Indenture, any of the following shall be an Amortization Event with respect to
the Series 2008-1 Notes and collectively shall constitute the Amortization
Events set forth in Section 9.1(n) of the Base Indenture with respect to the
Series 2008-1 Notes (without notice or other action on the part of the Trustee
or any holders of the Series 2008-1 Notes):

    

    (a)           a
Series 2008-1 Enhancement Deficiency shall occur and continue for at least two
(2) Business Days; provided, however, that such
event or condition shall not be an Amortization Event if during such two (2)
Business Day period such Series 2008-1 Enhancement Deficiency shall have been
cured in accordance with the terms and condi­tions of the Indenture and the
Related Documents;

    

    (b)           either
the Series 2008-1 Liquidity Amount shall be less than the Series 2008-1
Re­quired Liquidity Amount or the Series 2008-1 Available Reserve Account
Amount shall be less than the Series 2008-1 Required Reserve Account Amount for
at least two (2) Busi­ness Days; provided, however, that such
event or condi­tion shall not be an Amortization Event if during such two
(2) Business Day period such insufficiency shall have been cured in accordance
with the terms and condi­tions of the Indenture and the Related
Documents;

    

    (c)           an
AESOP I Operating Lease Vehicle Deficiency shall occur and continue for at least
two (2) Business Days;

    

    (d)           the
Collection Account, the Series 2008-1 Collection Account, the Series 2008-1
Excess Collection Account or the Series 2008-1 Reserve Account shall be subject
to an injunction, estoppel or other stay or a Lien (other than Liens permitted
under the Related Docu­ments);

    

    (e)           all
principal of and interest on the Series 2008-1 Notes is not paid on the Series
2008-1 Expected Final Distribution Date;

    

    (f)         
  any Series 2008-1 Letter of Credit shall not be in full force and
effect for at least two (2) Business Days and (x) either a Series 2008-1
Enhancement Deficiency would result from excluding such Series 2008-1 Letter of
Credit from the Series 2008-1 Enhancement Amount or (y) the Series 2008-1
Liquidity Amount, excluding therefrom the available amount under such Series
2008-1 Letter of Credit, would be less than the Series 2008-1 Required Liquidity
Amount;

    

    
      
        
           

        

        
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    (g)           from
and after the funding of the Series 2008-1 Cash Collateral Account, the Series
2008-1 Cash Collateral Account shall be subject to an injunction, estoppel or
other stay or a Lien (other than Liens permitted under the Related Documents)
for at least two (2) Business Days and either (x) a Series 2008-1 Enhancement
Deficiency would result from excluding the Series 2008-1 Available Cash
Collateral Account Amount from the Series 2008-1 Enhancement Amount or (y) the
Series 2008-1 Liquidity Amount, excluding therefrom the Series 2008-1 Available
Cash Collateral Amount, would be less than the Series 2008-1 Required Liquidity
Amount;

    

    (h)           an
Event of Bankruptcy shall have occurred with respect to any Series 2008-1 Letter
of Credit Provider or any Series 2008-1 Letter of Credit Provider
repudi­ates its Series 2008-1 Letter of Credit or refuses to honor a proper
draw thereon and either (x) a Series 2008-1 Enhancement Deficiency would result
from excluding such Series 2008-1 Letter of Credit from the Series 2008-1
Enhancement Amount or (y) the Series 2008-1 Liquidity Amount, excluding
therefrom the available amount under such Series 2008-1 Letter of Credit, would
be less than the Series 2008-1 Required Liquidity Amount;

    

    (i)       
    the occurrence of an Event of Bankruptcy with respect to
ABG or any Permitted Sublessee;

    

    (j)       
    a Change in Control shall have occurred;

    

    (k)           ABRCF
shall fail to acquire or maintain in force Series 2008-1 Interest Rate Caps at
the times and in the notional amounts required by the terms of Section 3.11;
and

    

    (l)      
     the occurrence and continuation of an “event of
default” under the Credit Agreement or any Replacement Credit Agreement, without
giving effect to any waiver of any such event of default that is not approved in
writing by the Requisite Noteholders and provided that, for purposes of this
Supplement, the event of default set forth in Section 8(e) of the Credit
Agreement shall survive the termination of the Credit Agreement;
and

    

    (m)          (i)
the Consolidated Leverage Ratio as at the last day of any period of four
consecutive fiscal quarters of ABCR ending with any fiscal quarter set forth
below (commencing with the fiscal quarter ending June 30, 2010) shall exceed the
ratio set forth below opposite such fiscal quarter:

     

    
      	
              Fiscal Quarter ending

            	 	
              Consolidated

              Leverage Ratio

            
	 
      	 	 
      
	
              June
      30, 2010

            	 	
              5.25
      to 1.00

            
	 
      	 	 
      
	
              June
      30, 2011 and thereafter

            	 	
              4.75
      to 1.00

            

    

    

    
      
        
           

        

        
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    or (ii)
the Consolidated EBITDA as at the last day of any period of four consecutive
fiscal quarters of ABCR ending with any fiscal quarter set forth below
(commencing with the fiscal quarter ending December 31, 2008), shall be less
than the amount set forth below opposite such fiscal quarter:

    

    
      	
              Fiscal Quarter ending

            	 	
              Consolidated EBITDA

            
	 
      	 	 
      
	
              December
      31, 2008

            	 	
              $160,000,000

            
	 
      	 	 
      
	
              March
      31, 2009

            	 	
              $135,000,000

            
	 
      	 	 
      
	
              June
      30, 2009

            	 	
              $95,000,000

            
	 
      	 	 
      
	
              September
      30, 2009

            	 	
              $80,000,000

            
	 
      	 	 
      
	
              December
      31, 2009

            	 	
              $155,000,000

            
	 
      	 	 
      
	
              March
      31, 2010

              and
      thereafter

            	 	
              $175,000,000

            

    

    

    In the
case of any event described in clause (j), (k), (l) or (m) above, an
Amortization Event shall have occurred with respect to the Series 2008-1 Notes
only if either the Trustee or the Requisite Noteholders declare that an
Amortization Event has occurred.  In the case of an event described in
clause (a), (b), (c), (d), (e), (f), (g), (h) or (i) an Amortization Event with
respect to the Series 2008-1 Notes shall have occurred without any notice or
other action on the part of the Trustee or any Series 2008-1 Noteholders,
immediately upon the occurrence of such event.  Amortization Events
with respect to the Series 2008-1 Notes described in clause (a), (b), (c), (d),
(e), (f), (g), (h) or (i) may be waived with the written consent of the
Purchaser Groups having Commitment Percentages aggregating
100%.  Amortization Events with respect to the Series 2008-1 Notes
described in clause (j), (k), (l) or (m) above may be waived in accordance with
Section 9.5 of the Base Indenture.

    

    ARTICLE
V

    

    RIGHT
TO WAIVE PURCHASE RESTRICTIONS

    

    Notwithstanding
any provision to the contrary in the Indenture or the Related Docu­ments,
upon the Trustee’s receipt of notice from any Lessee, any Borrower or ABRCF that
the Les­sees, the Borrowers and ABRCF have determined to in­crease any
Series 2008-1 Maximum Amount or the percentage set forth in clause (y) of any of
paragraphs (ii), (iii), (iv), (v), (vi) or (vii) of the definition of Series
2008-1 Incremental Enhancement Amount, (such notice, a “Waiver Request”),
each Series 2008-1 Note­holder may, at its option, waive any Series 2008-1
Maximum Amount or any increase in the Series 2008-1 Required Enhancement Amount
based upon clause (y) of any of paragraphs (ii), (iii), (iv), (v), (vi) or (vii)
of the definition of the Series 2008-1 Incremental Enhancement Amount
(collectively, a “Waivable Amount”) if
(i) no Amortization Event exists, (ii) the Requisite Noteholders consent to such
waiver and (iii) 60 days’ prior written notice of such proposed waiver is
provided to the Rating Agencies and Standard & Poor’s by the
Trustee.

    

    
      
        
           

        

        
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    Upon
receipt by the Trustee of a Waiver Request (a copy of which the Trustee shall
promptly provide to the Rating Agencies), all amounts which would otherwise be
allocated to the Series 2008-1 Excess Collection Account (collectively, the
“Designated
Amounts”) from the date the Trustee receives a Waiver Request through the
Consent Period Expiration Date will be held by the Trust­ee in the Series
2008-1 Collection Account for ratable distribution as described
below.

    

    Within
ten (10) Business Days after the Trustee receives a Waiver Request, the Trustee
shall furnish notice thereof to the Administrative Agent, which notice shall be
accompanied by a form of consent (each a “Consent”) in the form
of Exhibit C hereto
by which the Series 2008-1 Noteholders may, on or before the Consent Period
Expiration Date, consent to waiver of the applicable Waivable
Amount.  Upon receipt of notice of a Waiver Request, the
Administrative Agent shall forward a copy of such request together with the
Consent to the Funding Agent with respect to each Purchaser Group.  If
the Trustee receives the Consents from the Requisite Noteholders agreeing to
waiver of the applicable Waivable Amount within forty-five (45) days after the
Trustee notifies the Administrative Agent of a Waiver Request (the day on which
such forty-five (45) day period expires, the “Consent Period Expiration
Date”), (i) the applicable Waivable Amount shall be deemed waived by the
consenting Series 2008-1 Noteholders, (ii) the Trus­tee will distribute the
Designated Amounts as set forth below and (iii) the Trustee shall promptly
(but in any event within two days) provide the Rating Agencies with notice of
such waiver.  Any Purchaser Group from whom the Trustee has not
received a Consent on or before the Consent Period Expiration Date will be
deemed not to have consented to such waiver.

    

    If the
Trustee receives Consents from the Requisite Noteholders on or before the
Consent Period Expiration Date, then on the immediately following
Dis­tribution Date, upon receipt of written direction from the Administrator
the Trustee will pay the Designated Amounts to the Administrative Agent for the
accounts of the non-consenting Purchaser Groups.  Upon the receipt of
funds from the Trustee pursuant to this Article V, the Administrative Agent
shall pay the Designated Amounts as follows:

    

    (i)          
 to each Funding Agent with respect to a non-consenting Purchaser Group,
such Purchaser Group’s pro rata share based on
the Purchaser Group Invested Amount with respect to such Purchaser Group
relative to the Purchaser Group Invested Amount with respect to all
non-consenting Purchaser Groups of the Designated Amounts up to the amount
required to reduce to zero the Purchaser Group Invested Amounts with respect to
all non-consenting Purchaser Groups; and

    

    
      
        
           

        

        
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    (ii)           any
remaining Designated Amounts to the Series 2008-1 Excess Collection
Account.

    

    If the
amount distributed pursuant to clause (i) of the preceding paragraph is not
sufficient to reduce the Purchaser Group Invested Amount with respect to each
non-consenting Purchaser Group to zero on the date specified therein, then on
each day following such Dis­tribution Date, the Admin­istrator will
allocate to the Series 2008-1 Collection Account on a daily basis all Designated
Amounts collected on such day.  On each fol­lowing Distribution
Date, the Trustee will withdraw such Designated Amounts from the Series 2008-1
Collection Account and deposit the same in the Series 2008-1 Distribution
Account for distribution to the Administrative Agent for the accounts of the
non-consenting Purchaser Groups.  Upon the receipt of funds from the
Trustee pursuant to this Article V, the Administrative Agent shall pay the
Designated Amounts as follows:

    

    (a)           to
each Funding Agent with respect to a non-consenting Purchaser Group, such
Purchaser Group’s pro rata share based on
the Purchaser Group Invested Amount with respect to such Purchaser Group
relative to the Purchaser Group Invested Amount with respect to all
non-consenting Purchaser Groups of the Designated Amounts in the Series 2008-1
Collection Account as of the applicable Determination Date up to the amount
required to reduce to zero the Purchaser Group Invested Amounts with respect to
all non-consenting Purchaser Groups; and

    

    (b)           any
remaining Designated Amounts to the Series 2008-1 Excess Collection
Account.

    

    If the
Requisite Noteholders do not timely consent to such waiver, the Desig­nated
Amounts will be re-allocated to the Series 2008-1 Excess Collection Account for
allocation and distribution in accordance with the terms of the Indenture and
the Related Documents.

    

    In the
event that the Series 2008-1 Amortization Period shall commence after receipt by
the Trustee of a Waiver Request, all such Designated Amounts will thereafter be
considered Principal Collections allo­cated to the Series 2008-1
Noteholders.

    

    ARTICLE
VI

    

    CONDITIONS
PRECEDENT

    

    Section
6.1.  Conditions Precedent to
Effectiveness of Original Series 2008-1 Supplement.  The
Original Series 2008-1 Supplement became effective on the date (the “Effective Date”) on
which all of the following conditions precedent were satisfied:

    

    (a)           Documents.  The
Administrative Agent shall have received copies for each CP Conduit Purchaser
and the Funding Agent and the APA Banks with respect to such CP Conduit
Purchaser, each executed and delivered in form and substance satisfactory to it
of (i) the Base Indenture, executed by a duly authorized officer of each of
ABRCF and the Trustee, (ii) the Original Series 2008-1 Supplement, executed by a
duly authorized officer of each of ABRCF, the Administrator, the Trustee, the
Administrative Agent, the Funding Agents, the CP Conduit Purchasers and the APA
Banks, (iii) each Lease, executed by a duly authorized officer of each of each
Lessee party thereto, the Administrator and the Lessor party thereto, (iv) each
Sublease, executed by a duly authorized officer of each Lessee party thereto and
each Permitted Sublessee party thereto, (v) each Loan Agreement, executed by a
duly authorized officer of each of ABRCF, the Lessor party thereto and the
Permitted Nominees party thereto, (vi)  each Vehicle Title and
Lienholder Nominee Agreement, executed by the duly authorized officer of each of
the Permitted Nominee party thereto, ABCR, the Lessor party thereto and the
Trustee, (vii) the Master Exchange Agreement, executed by a duly authorized
officer of each of the Intermediary, AESOP Leasing, ARAC, BRAC and ABCR; (viii)
the Escrow Agreement, executed by a duly authorized officer of each of the
Intermediary, J.P. Morgan Trust Company, N.A., JPMorgan Chase Bank, N.A., AESOP
Leasing, ARAC, BRAC and ABCR; (ix) the Administration Agreement, executed by a
duly authorized officer of each of ABCR, AESOP Leasing, AESOP Leasing II, ABRCF,
ARAC, BRAC and the Trustee; (x) each Series 2008-1 Letter of Credit, if any,
executed by a duly authorized officer of the applicable Series 2008-1 Letter of
Credit Provider; and (xi) each Series 2008-1 Interest Rate Cap, executed by a
duly authorized officer of ABRCF and the applicable Interest Rate Cap
Counterparty.

    

    
      
        
           

        

        
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    (b)           Corporate Documents;
Proceedings of ABRCF, the Administrator, the Permitted Nominees, AESOP Leasing,
AESOP Leasing II, Original AESOP, ARAC and BRAC.  The
Adminis­trative Agent shall have received, with a copy for each CP Conduit
Purchaser and the Funding Agent and the APA Banks with respect to such CP
Conduit Purchaser, from ABRCF, the Administrator, the Permitted Nominees, AESOP
Leasing, AESOP Leasing II, Original AESOP, ARAC, ABCR and BRAC true and complete
copies of:

    

    (i)          
 to the extent applicable, the certificate of incorporation or certificate
of formation, including all amendments thereto, of such Person, certified as of
a recent date by the Secretary of State or other appropriate authority of the
state of incorporation or organization, as the case may be, and a certificate of
compliance, of status or of good standing, as and to the extent applicable, of
each such Person as of a recent date, from the Secretary of State or other
appropriate authority of such jurisdiction;

    

    (ii)           a
certificate of the Secretary or an Assistant Secretary of such Person, dated on
or prior to the Effective Date and certifying (A) that attached thereto is a
true and complete copy of the bylaws, limited liability company agreement or
partnership agreement of such Person, as the case may be, as in effect on the
Series 2008-1 Closing Date and at all times since a date prior to the date of
the resolutions described in clause (B) below, (B) that, to the extent
applicable, attached thereto is a true and complete copy of the resolutions, in
form and substance reasonably satisfac­tory to each Funding Agent, of the
Board of Directors or Managers of such Person or committees thereof authorizing
the execution, delivery and performance of the Original Series 2008-1 Supplement
and the Series 2008-1 Documents to which it is a party and the transactions
contemplated thereby, and that such resolutions have not been amended,
modi­fied, revoked or rescinded and are in full force and effect, (C) that
the certificate of incorporation or certificate of formation of such Person has
not been amended since the date of the last amendment thereto shown on the
certificate of good standing (or its equivalent) furnished pursuant to clause
(i) above and (D) as to the incumbency and specimen signature of each officer or
authorized signatory executing the Original Series 2008-1 Supplement and any
Series 2008-1 Documents or any other document delivered in connection herewith
or therewith on behalf of such Person; and

    

    
      
        
           

        

        
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    (iii)          a
certificate of another officer as to the incumbency and specimen signature of
the Secretary or Assistant Secretary executing the certificate pursuant to
clause (ii) above.

    

    (c)           Representations and
Warranties.  All representations and warranties of each of
ABRCF, the Administrator, AESOP Leasing, AESOP Leasing II, Original AESOP, each
of the Permitted Nominees, each of the Lessees, each of the Permitted Sublessees
and the Intermediary contained in each of the Related Documents shall be true
and correct as of the Series 2008-1 Closing Date.

    

    (d)           No Amortization Event,
Potential Amortization Event or AESOP I Operating Lease Vehicle
Deficiency.  No Amortization Event or Potential Amortization
Event in respect of the Series 2008-1 Notes or any other Series of Notes shall
exist and no AESOP I Operating Lease Vehicle Deficiency shall
exist.

    

    (e)           Lien
Searches.  The Administrative Agent shall have received a
written search report listing all effective financing statements that name
ABRCF, AESOP Leasing, AESOP Leasing II, Original AESOP, each of the Permitted
Nominees or ABCR as debtor or assignor and that are filed in the State of
New York, the State of Delaware and in any other jurisdictions that the
Administrative Agent determines are necessary or appropriate, together with
copies of such financing statements, and tax and judgment lien searches showing
no such liens that are not permitted by the Base Indenture, this Supplement or
the Related Documents.

    

    (f)         
  Legal
Opinions.  The Administrative Agent shall have received, with a
counterpart addressed to each CP Conduit Purchaser and the Funding Agent, the
Program Support Provider and the APA Banks with respect to such CP Conduit
Purchaser and the Trustee, opinions of counsel required by Section 2.2(f) of the
Base Indenture and opinions of counsel with respect to such other matters as may
be reasonably requested by any Funding Agent, in form and substance reasonably
acceptable to the addressees thereof and their counsel.

    

    (g)           Fees and
Expenses.  Each Funding Agent with respect to a CP Conduit
Purchaser shall have received payment of all fees, out-of-pocket expenses and
other amounts due and payable to such CP Conduit Purchaser or the APA Banks with
respect to such CP Conduit Purchaser on or before the Effective
Date.

    

    (h)           Establishment of
Accounts.  The Administrative Agent shall have received
evidence reasonably satisfactory to it that the Series 2008-1 Collection
Account, the Series 2008-1 Reserve Account and the Series 2008-1 Distribution
Account shall have been established in accordance with the terms and provisions
of the Indenture.

    

    
      
        
           

        

        
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    (i)          
 Opinion.  The
Administrative Agent shall have received, with a counterpart addressed to each
CP Conduit Purchaser and the Funding Agent, the Program Support Provider and the
APA Banks with respect such CP Conduit Purchaser, an opinion of counsel to the
Trustee as to the due authorization, execution and delivery by the Trustee of
the Original Series 2008-1 Supplement and the due execution, authentication and
delivery by the Trustee of the Series 2008-1 Notes.

    

    (j)          
 Rating
Letters.  Each Funding Agent shall have received (x) a copy of
a letter, in form and substance satisfactory to such Funding Agent, from each of
(i) Moody’s stating that the long-term rating of “A2” has been assigned by
Moody’s to the Series 2008-1 Notes and (ii) Standard & Poor’s stating that
the long-term rating of “A” has been assigned by Standard & Poor’s to the
Series 2008-1 Notes and (y) a letter, in form and substance satisfactory to such
Funding Agent, from each of Moody’s and Standard & Poor’s confirming the
commercial paper rating of the related CP Conduit Purchaser after giving effect
to such CP Conduit Purchaser’s purchase of Series 2008-1 Notes.

    

    (k)           UCC
Filings.  The Administrative Agent shall have received (i)
executed originals of any documents (including, without limitation, financing
statements) required to be filed in each jurisdiction necessary to perfect the
security interest of the Trustee in the Series 2008-1 Collateral and (ii)
evidence reasonably satisfactory to it of each such filing and reasonably
satisfactory evidence of the payment of any necessary fee or tax relating
thereto.

    

    (l)          
 Proceedings.  All
corporate and other proceedings and all other documents and legal matters in
connection with the transactions contemplated by the Related Documents shall be
satisfactory in form and substance to each Funding Agent and its
counsel.

    

    Section
6.2.  Conditions Precedent to
Effectiveness of Supplement.  This Supplement shall become
effective on the date (the “A&R Effective
Date”) on which the following conditions precedent have been
satisfied:

    

    (a)           Documents.  The
Administrative Agent shall have received copies for each CP Conduit Purchaser
and the Funding Agent and the APA Banks with respect to such CP Conduit
Purchaser, each executed and delivered in form and substance satisfactory to it
of: (i) the Disposition Agent Agreement, dated as of July 23, 2009, executed by
a duly authorized officer of each of ABCR, ABRCF, AESOP Leasing, AESOP Leasing
II, ARAC, BRAC, Lord Securities Corporation, Fiserv Automotive Solutions, Inc.
and the Trustee; (ii) the Back-Up Administration Agreement, dated as of July 23,
2009, executed by a duly authorized officer of each of ABCR, ABRCF, AESOP
Leasing, AESOP Leasing II, ARAC, BRAC, the Intermediary, Lord Securities
Corporation and the Trustee; (iii) each Series 2008-1 Letter of Credit in effect
on the A&R Effective Date, if any, executed by a duly authorized officer of
the applicable Series 2008-1 Letter of Credit Provider; and (iv) each Series
2008-1 Interest Rate Cap in effect on the A&R Effective Date, executed by a
duly authorized officer of ABRCF and the applicable Interest Rate Cap
Counterparty satisfying the requirements of Section 3.11(a).

    

    
      
        
           

        

        
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    (b)           Corporate Documents;
Proceedings of ABRCF, the Administrator, the Permitted Nominees, AESOP Leasing,
AESOP Leasing II, Original AESOP, ARAC and BRAC.  The
Adminis­trative Agent shall have received, with a copy for each CP Conduit
Purchaser and the Funding Agent and the APA Banks with respect to such CP
Conduit Purchaser, from ABRCF, the Administrator, the Permitted Nominees, AESOP
Leasing, AESOP Leasing II, Original AESOP, ARAC, ABCR and BRAC true and complete
copies of:

    

    (i)      
     to the extent applicable, the certificate of
incorporation or certificate of formation, including all amendments thereto, of
such Person, certified as of a recent date by the Secretary of State or other
appropriate authority of the state of incorporation or organization, as the case
may be, and a certificate of compliance, of status or of good standing, as and
to the extent applicable, of each such Person as of a recent date, from the
Secretary of State or other appropriate authority of such
jurisdiction;

    

    (ii)           a
certificate of the Secretary or an Assistant Secretary of such Person, dated on
or prior to the Effective Date and certifying (A) that attached thereto is a
true and complete copy of the bylaws, limited liability company agreement or
partnership agreement of such Person, as the case may be, as in effect on the
Series 2008-1 Closing Date and at all times since a date prior to the date of
the resolutions described in clause (B) below, (B) that, to the extent
applicable, attached thereto is a true and complete copy of the resolutions, in
form and substance reasonably satisfac­tory to each Funding Agent, of the
Board of Directors or Managers of such Person or committees thereof authorizing
the execution, delivery and performance of this Supplement and the Series 2008-1
Documents to which it is a party and the transactions contemplated thereby, and
that such resolutions have not been amended, modi­fied, revoked or rescinded
and are in full force and effect, (C) that the certificate of incorporation or
certificate of formation of such Person has not been amended since the date of
the last amendment thereto shown on the certificate of good standing (or its
equivalent) furnished pursuant to clause (i) above and (D) as to the incumbency
and specimen signature of each officer or authorized signatory executing this
Supplement and any Series 2008-1 Documents or any other document delivered in
connection herewith or therewith on behalf of such Person; and

    

    (iii)          a
certificate of another officer as to the incumbency and specimen signature of
the Secretary or Assistant Secretary executing any certificate pursuant to
clause (ii) above that requires the certification set forth in clause (ii)(D)
above.

    

    (c)           Representations and
Warranties.  All representations and warranties of each of
ABRCF, ABCR, AESOP Leasing, AESOP Leasing II, Original AESOP, each of the
Permitted Nominees, each of the Lessees, each of the Permitted Sublessees and
the Intermediary contained in each of the Related Documents shall be true and
correct as of the Series 2008-1 Closing Date.

    

    (d)           No Amortization Event,
Potential Amortization Event or AESOP I Operating Lease Vehicle
Deficiency.  No Amortization Event or Potential Amortization
Event in respect of the Series 2008-1 Notes or any other Series of Notes shall
exist and no AESOP I Operating Lease Vehicle Deficiency shall
exist.

    

    
      
        
           

        

        
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    (e)           Fees and
Expenses.  Each Funding Agent with respect to a CP Conduit
Purchaser and the Administrative Agent shall have received payment of all fees,
out-of-pocket expenses and other amounts due and payable to such CP Conduit
Purchaser or the APA Banks with respect to such CP Conduit Purchaser or the
Administrative Agent, as applicable, on or before the A&R Effective
Date.

    

    (f)       
    Rating
Letters.  Each Funding Agent shall have received (x) a copy of
a letter, in form and substance satisfactory to such Funding Agent, from Moody’s
stating that the long-term rating of “Aa2” has been assigned by Moody’s to the
Series 2008-1 Notes (y) a copy of a letter, in form and substance satisfactory
to such Funding Agent, from each of Moody’s and Standard & Poor’s stating
that the issuance of the amendment and restatement of the Original Series 2008-1
Supplement by this Supplement will not result in a reduction or withdrawal of
the rating (in effect immediately before the effectiveness of this Supplement)
of any outstanding Series of Notes with respect to which it is a Rating Agency
and (z) a letter, in form and substance satisfactory to such Funding Agent, from
each of Moody’s and Standard & Poor’s confirming the commercial paper rating
of the related CP Conduit Purchaser after the effectiveness of this Supplement
(and any fees of the Rating Agencies in connection with the delivery of such
letters shall have been paid by or on behalf of ABRCF); provided that each of
the CP Conduit Purchasers, the APA Banks and the Funding Agents expressly
acknowledges that, as of the A&R Effective Date, the Series 2008-1 Notes are
no longer rated by Standard & Poor’s and thus Standard & Poor’s is not a
Rating Agency with respect to the Series 2008-1 Notes.

    

    (g)           Certificates and
Opinions.  All certificates and opinions of counsel required
under the Base Indenture or reasonably requested by the Series 2008-1
Noteholders shall have been delivered to the Trustee and to the Series 2008-1
Noteholders, as applicable.

    

    (h)           Series 2008-1
Notes.  ABRCF shall have issued and directed the Trustee to
authenticate, and the Trustee shall have authenticated, a Series 2008-1 Note in
the name of each Funding Agent with respect to each Purchaser Group in an amount
equal to the Maximum Purchaser Group Invested Amount with respect to such
Purchaser Group (after giving effect to the effectiveness of this Supplement),
and shall have delivered such Series 2008-1 Note to such Funding
Agent.

    

    ARTICLE
VII

    

    CHANGE
IN CIRCUMSTANCES

    

    Section
7.1.  Increased
Costs.  i)  If any Change in Law (except with respect
to Taxes which shall be governed by Section 7.2) shall:

    

    (i)          
 impose, modify or deem applicable any reserve, special deposit or similar
requirement against assets of, deposits with or for the account of, or credit
extended by, any Affected Party (except any such reserve requirement reflected
in the Adjusted LIBO Rate); or

    

    
      
        
           

        

        
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    (ii)           impose
on any Affected Party or the London interbank market any other condition
affecting the Indenture or the Related Documents or the funding of Eurodollar
Tranches by such Affected Party;

    

    and the
result of any of the foregoing shall be to increase the cost to such Affected
Party of mak­ing, converting into, continuing or maintaining Eurodollar
Tranches (or maintaining its obliga­tion to do so) or to reduce any amount
received or receivable by such Affected Party hereunder or in connection
herewith (whether principal, interest or otherwise), then ABRCF will pay to such
Affected Party such additional amount or amounts as will compensate such
Affected Party for such additional costs incurred or reduction
suffered.

    

    (b)           If
any Affected Party determines that any Change in Law regarding capital
requirements has or would have the effect of reducing the rate of return on such
Affected Party’s capital or the capital of any corporation controlling such
Affected Party as a consequence of its obligations hereunder to a level below
that which such Affected Party or such corporation could have achieved but for
such Change in Law (taking into consideration such Affected Party’s or such
corporation’s policies with respect to capital adequacy), then from time to
time, ABRCF shall pay to such Affected Party such additional amount or amounts
as will compensate such Affected Party for any such reduction
suffered.

    

    (c)           A
certificate of an Affected Party setting forth the amount or amounts necessary
to compensate such Affected Party as specified in subsections (a) and (b) of
this Section 7.1 shall be delivered to ABRCF (with a copy to the
Administrative Agent and the Funding Agent with respect to such Affected Party)
and shall be conclusive absent manifest error.  Any payments made by
ABRCF pursuant to this Section 7.1 shall be made solely from funds available in
the Series 2008-1 Distribution Account for the payment of Article VII Costs,
shall be non-recourse other than with respect to such funds, and shall not
constitute a claim against ABRCF to the extent that insufficient funds exist to
make such payment.  The agreements in this Section 7.1 shall survive
the termination of this Supplement and the Base Indenture and the payment of all
amounts payable hereunder and thereunder.

    

    (d)           Failure
or delay on the part of an Affected Party to demand compensation pursuant to
this Section 7.1 shall not constitute a waiver of such Affected Party’s
right to demand such compensation; provided that ABRCF
shall not be required to compensate any Affected Party pursuant to this
Section 7.1 for any increased costs or reductions incurred more than 270
days prior to the date that such Affected Party notifies ABRCF of the Change in
Law giving rise to such increased costs or reductions and of such Affected
Party’s intention to claim compensation therefor; provided, further, that, if the
Change in Law giving rise to such increased costs or reduc­tions is
retroactive, then the 270-day period referred to above shall be extended to
include the period of retroactive effect thereof.

    

    Section
7.2.  Taxes.  ii)  Any
and all payments by or on account of any obligation of ABRCF here­under
shall be made free and clear of and without deduction for any Indemnified Taxes
or Other Taxes; provided that if
ABRCF shall be required to deduct any Indemnified Taxes or Other Taxes from such
payments, then (i) subject to Section 7.2(c) below, the sum payable shall be
increased as necessary so that after making all required deductions (including
deductions applicable to additional sums payable under this Section 7.2)
the recipient receives an amount equal to the sum that it would have received
had no such deductions been made, (ii) ABRCF shall make such deduc­tions and
(iii) ABRCF shall pay the full amount deducted to the relevant Governmental
Authority in accordance with applicable law.

    

    
      
        
           

        

        
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    (b)           In
addition, ABRCF shall pay any Other Taxes to the relevant Governmental Authority
in accordance with applicable law.

    

    (c)           ABRCF
shall indemnify the Administrative Agent, each Funding Agent, each Program
Support Provider and each member of each Purchaser Group within the later of 10
days after written demand therefor and the Distribution Date next following such
demand for the full amount of any Indemnified Taxes or Other Taxes paid by the
Administrative Agent, such Funding Agent, such Program Support Provider or such
member of such Purchaser Group on or with respect to any payment by or on
account of any obligation of ABRCF hereunder or under the Indenture (including
Indemnified Taxes or Other Taxes imposed or asserted on or attributable to
amounts payable under this Section 7.2) and any penalties, interest and
reasonable expenses arising therefrom or with respect thereto, whether or not
such Indemnified Taxes or Other Taxes were correctly or legally imposed or
asserted by the relevant Governmental Authority; provided that no
Person shall be indemnified pursuant to this Section 7.2(c) or entitled to
receive additional amounts under the proviso of Section 7.2(a) to the extent
that the reason for such indemnification results from the failure by such Person
to comply with the provisions of Section 7.2(e) or (g).  A certificate
as to the amount of such payment or liability delivered to ABRCF by the
Administrative Agent, any Funding Agent, any Program Support Provider or any
member of any Purchaser Group shall be conclusive absent manifest
error.  Any payments made by ABRCF pursuant to this Section 7.2 shall
be made solely from funds available in the Series 2008-1 Distribution Account
for the payment of Article VII Costs, shall be non-recourse other than with
respect to such funds, and shall not constitute a claim against ABRCF to the
extent that insufficient funds exist to make such payment.  The
agreements in this Section shall survive the termination of this Supplement and
the Base Indenture and the payment of all amounts payable hereunder and
thereunder.

    

    (d)           As
soon as practicable after any payment of Indemnified Taxes or Other Taxes by
ABRCF to a Governmental Authority, ABRCF shall deliver to the Administrative
Agent the original or a certified copy of a receipt issued by such Governmental
Authority evidencing such payment, a copy of the return reporting such payment
or other evidence of such payment reasonably satisfactory to the Administrative
Agent.

    

    (e)           The
Administrative Agent, each Funding Agent, each member of each Purchaser Group
and each Program Support Provider, if entitled to an exemption from or reduction
of an Indemnified Tax or Other Tax with respect to payments made hereunder or
under the Indenture shall (to the extent legally able to do so) deliver to ABRCF
(with a copy to the Administrative Agent) such properly completed and executed
documentation prescribed by applicable law and reason­ably requested by
ABRCF on the later of (i) 30 Business Days after such request is made and the
applicable forms are provided to the Administrative Agent, such Funding Agent,
such member of such Purchaser Group or such Program Support Provider or (ii)
thirty (30) Business Days before prescribed by applicable law as will permit
such payments to be made without withholding or with an exemption from or
reduction of Indemnified Taxes or Other Taxes.

    

    
      
        
           

        

        
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    (f)           If
the Administrative Agent, any Funding Agent, any Program Support Provider or any
member of any Purchaser Group receives a refund solely in respect of Indemnified
Taxes or Other Taxes, it shall pay over such refund to ABRCF to the extent that
it has already received indemnity payments or additional amounts pursuant to
this Section 7.2 with respect to such Indemnified Taxes or Other Taxes giving
rise to the refund, net of all out-of-pocket expenses and without interest
(other than interest paid by the relevant Governmental Authority with respect to
such refund); provided, however, that ABRCF
shall, upon request of the Administrative Agent, such Funding Agent, such
Program Support Provider or such member of such Purchaser Group, repay such
refund (plus interest or other charges imposed by the relevant Governmental
Authority) to the Administrative Agent, such Funding Agent, such Program Support
Provider or such member of such Purchaser Group if the Administrative Agent,
such Funding Agent, such Program Support Provider or such member of such
Purchaser Group is required to repay such refund to such Governmental
Authority.  Nothing contained herein shall require the Administrative
Agent, any Funding Agent, any Program Support Provider or any member of any
Purchaser Group to make its tax returns (or any other information relating to
its taxes which it deems confidential) available to ABRCF or any other
Person.

    

    (g)           The
Administrative Agent, each Funding Agent, each Program Support Provider and each
member of each Purchaser Group (other than any such entity which is a domestic
corporation) shall:

    

    (i)        
   upon or prior to becoming a party hereto, deliver to ABRCF and
the Administrative Agent two (2) duly completed copies of IRS Form W-8BEN,
W-8ECI or W-9, or successor applicable forms, as the case may be, establishing a
complete exemption from withholding of United States federal income taxes or
backup withholding taxes with respect to payments under the Series 2008-1 Notes
and this Supplement;

    

    (ii)           deliver
to ABRCF and the Administrative Agent two (2) further copies of any such form or
certification establishing a complete exemption from withholding of United
States federal income taxes or backup withholding taxes with respect to payments
under the Series 2008-1 Notes and this Supplement on or before the date that any
such form or certification expires or becomes obsolete and after the occurrence
of any event requiring a change in the most recent form previously delivered by
it to ABRCF; and

    

    (iii)           obtain
such extensions of time for filing and completing such forms or certifications
as may reasonably be requested by ABRCF and the Administrative
Agent;

    

    unless,
in any such case, any change in treaty, law or regulation has occurred after the
Series 2008-1 Closing Date (or, if later, the date the Administrative Agent,
such Funding Agent, such Program Support Provider or such member of such
Purchaser Group becomes an indemnified party hereunder) and prior to the date on
which any such delivery would otherwise be required which renders the relevant
form inapplicable or which would prevent the Administrative Agent, such Funding
Agent, such Program Support Provider or such member of such Purchaser Group from
duly completing and delivering the relevant form with respect to it, and the
Administrative Agent, such Funding Agent, such Program Support Provider or such
member of such Purchaser Group so advises ABRCF and the Administrative
Agent.

    

    
      
        
           

        

        
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    (h)           If
a beneficial or equity owner of the Administrative Agent, a Funding Agent, a
Program Support Provider or a member of a Purchaser Group (instead of the
Administrative Agent, the Funding Agent, the Program Support Provider or the
member of the Purchaser Group itself) is required under United States federal
income tax law or the terms of a relevant treaty to provide IRS Form W-8BEN,
W-8ECI or W-9, or any successor applicable forms, as the case may be, in order
to claim an exemption from withholding of United States federal income taxes or
backup withholding taxes, then each such beneficial owner or equity owner shall
be considered to be the Administrative Agent, a Funding Agent, a Program Support
Provider or a member of a Purchaser Group for purposes of Section
7.2(g).

    

    Section
7.3.  Break
Funding Payments.  ABRCF agrees to indemnify each Purchaser
Group and to hold each Purchaser Group harmless from any loss or expense which
such Purchaser Group may sustain or incur as a consequence of (a) the failure by
ABRCF to accept any Increase after ABRCF has given irrevocable notice requesting
the same in accordance with the provisions of this Supplement, (b) the
conversion into or continuation of a CP Tranche or a Eurodollar Tranche that
occurs other than on the last day of the applicable CP Rate Period or Eurodollar
Period, (c) default by ABRCF in making any prepay­ment in connection with a
Decrease after ABRCF has given irrevocable notice thereof in accordance with the
provisions of Section 2.5 or (d) the mak­ing of a prepayment of a CP Tranche
or a Eurodollar Tranche (including, without limitation, any Decrease) prior to
the termination of the CP Rate Period for such CP Tranche or the Eurodollar
Period for such Eurodollar Tranche, as the case may be, or the making of a
Decrease on a date other than as specified in any notice of a Decrease or in a
greater amount than contained in any notice of a Decrease.  Such
indemnification shall include an amount determined by the Funding Agent with
respect to such Purchaser Group and shall equal (a) in the case of the losses or
expenses associated with a CP Tranche or a Eurodollar Tranche, either (x) the
excess, if any, of (i) such Purchaser Group’s cost of funding the amount so
prepaid or not so bor­rowed, converted or continued, for the period from the
date of such prepayment or of such failure to borrow, convert or continue to the
last day of the CP Rate Period or the Eurodollar Period (or in the case of a
failure to borrow, convert or continue, the CP Rate Period or the Eurodollar
Period that would have com­menced on the date of such prepayment or of such
failure), as the case may be, over (ii) the amount of interest earned by such
Purchaser Group upon redeployment of an amount of funds equal to the amount
prepaid or not borrowed, converted or continued for a com­parable period or
(y) if such Purchaser Group is able to terminate the funding source before its
sched­uled maturity, any costs associated with such termination and (b) in
the case of the losses or expenses incurred by a Pooled Funding CP Conduit
Purchaser, the losses and expenses incurred by such Pooled Funding CP Conduit
Purchaser in connection with the liquidation or reemployment of deposits or
other funds acquired by such Pooled Funding CP Conduit Purchaser as a result of
the failure to accept an Increase, a default in the making of a Decrease or the
making of a Decrease in an amount or on a date not contained in a notice of a
Decrease.  Notwithstanding the foregoing, any payments made by ABRCF
pursuant to this subsection shall be made solely from funds available in the
Series 2008-1 Distribution Account for the payment of Article VII Costs, shall
be non-recourse other than with respect to such funds, and shall not constitute
a claim against ABRCF to the extent that such funds are insufficient to make
such payment.  This covenant shall survive the termination of this
Supplement and the Base Indenture and the pay­ment of all amounts payable
hereunder and thereunder.  A certificate as to any additional amounts
payable pursuant to the foregoing sentence submitted by any Funding Agent on
behalf of a Purchaser Group to ABRCF shall be conclusive absent manifest
error.

    

    
      
        
           

        

        
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    Section
7.4.  Alternate Rate of
Interest.  If prior to the commencement of any Eurodollar
Period:

    

    (a)           the
Administrative Agent determines (which determination shall be conclusive absent
manifest error) that adequate and reasonable means do not exist for ascertaining
the Adjusted LIBO Rate for such Eurodollar Period, or

    

    (b)           the
Administrative Agent is advised by any APA Bank that the Adjusted LIBO Rate for
such Eurodollar Period will not adequately and fairly reflect the cost to such
APA Bank of making or maintaining the Eurodollar Tranches during such Eurodollar
Period,

    

    then the
Administrative Agent shall promptly give telecopy or telephonic notice thereof
to ABRCF and the Trustee, whereupon until the Administrative Agent notifies
ABRCF and the Trustee that the circumstances giving rise to such notice no
longer exist, the Available APA Bank Funding Amount with respect to any
Purchaser Group (in the case of clause (a) above) or with respect to the related
Purchaser Group (in the case of clause (b) above) shall not be allocated to any
Eurodollar Tranche.

    

    Section
7.5.  Mitigation
Obligations.  If an Affected Party requests compensation under
Section 7.1, or if ABRCF is required to pay any additional amount to any
Purchaser Group or any Governmental Authority for the account of any Purchaser
Group pursuant to Section 7.2, then, upon written notice from ABRCF, such
Affected Party or Purchaser Group, as the case may be, shall use commercially
reasonable efforts to designate a different lending office for funding or
booking its obligations hereunder or to assign its rights and obligations
hereunder to another of its offices, branches or affiliates, which pays a price
for such assignment which is acceptable to such Purchaser Group and its
assignee, in the judgment of such Affected Party or Purchaser Group, such
designation or assignment (i) would eliminate or reduce amounts payable pursuant
to Section 7.1 or 7.2, as the case may be, in the future and (ii) would not
subject such Affected Party or Purchaser Group to any unreimbursed cost or
expense and would not otherwise be disadvantageous to such Affected Party or
Purchaser Group.  ABRCF hereby agrees to pay all reasonable costs and
expenses incurred by such Affected Party or Purchaser Group in connection with
any such designation or assignment.

    

    ARTICLE
VIII

    

    REPRESENTATIONS
AND WARRANTIES, COVENANTS

    

    Section
8.1.  Representations and
Warranties of ABRCF and the
Administrator.  (a)  ABRCF and the Administrator each
hereby represents and warrants to the Trustee, the Administrative Agent, each
Funding Agent, each CP Conduit Purchaser and each APA Bank that:

    

    (i)           each
and every of their respective representations and warranties contained in the
Related Documents is true and correct as of the Series 2008-1 Closing Date and
true and correct in all material respects (other than any such representation or
warranty that is qualified by materiality, which shall be true and correct) as
of the date of each Increase; and

    

    
      
        
           

        

        
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    (ii)           as
of the Series 2008-1 Closing Date, they have not engaged, in connection with the
offering of the Series 2008-1 Notes, in any form of general solicitation or
general advertising within the meaning of Rule 502(c) under the Securities
Act.

    

    (b)           ABRCF
hereby represents and warrants to the Trustee, the Administrative Agent, each
Funding Agent, each CP Conduit Purchaser and each APA Bank that each of the
Series 2008-1 Notes has been duly authorized and executed by ABRCF and when duly
authenticated by the Trustee and delivered to the Funding Agents in accordance
with the terms of this Supplement will constitute legal, valid and binding
obligations of ABRCF enforceable in accordance with their terms, except as
enforceability thereof may be limited by bankruptcy, insolvency, or other
similar laws relating to or affecting generally the enforcement of creditors’
rights or by general equitable principles.

    

    Section
8.2.  Covenants of ABRCF and the
Administrator.  ABRCF and the Administrator hereby agree, in
addition to their obligations hereunder, that:

    

    (a)           they
shall observe in all material respects each and every of their respective
covenants (both affirmative and negative) contained in the Base Indenture and
all other Related Documents to which each is a party;

    

    (b)           they
shall afford each Funding Agent with respect to a Purchaser Group, the Trustee
or any representatives of any such Funding Agent or the Trustee access to all
records relating to the Leases, the Subleases, the Vehicles, the Manufacturer
Programs and the Loan Agreements at any reasonable time during regular business
hours, upon reasonable prior notice (and with one Business Day’s prior notice if
an Amortization Event with respect to the Series 2008-1 Notes shall have been
deemed to have occurred or shall have been declared to have occurred), for
purposes of inspection and shall permit such Funding Agent, the Trustee or any
representative of such Funding Agent or the Trustee to visit any of ABRCF’s or
the Administrator’s, as the case may be, offices or properties during regular
business hours and as often as may reasonably be desired to discuss the
business, operations, properties, financial and other conditions of ABRCF or the
Administrator with their respective officers and employees and with their
independent certified public accountants;

    

    (c)           they
shall promptly provide such additional financial and other information with
respect to the Related Documents, ABRCF, the Lessors, the Permitted Nominees,
the Lessees, the Permitted Sublessees, the Related Documents or the Manufacturer
Programs as the Administrative Agent may from time to time reasonably
request;

    

    (d)           they
shall provide to the Administrative Agent simultaneously with delivery to the
Trustee copies of information furnished to the Trustee or ABRCF pursuant to the
Related Documents as such information relates to all Series of Notes generally
or specifically to the Series 2008-1 Notes or the Series 2008-1
Collateral.  The Administrative Agent shall distribute to the Funding
Agents copies of all information delivered to it pursuant to this Section
8.2(d);

    

    
      
        
           

        

        
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    (e)           they
shall not agree to any amendment to the Base Indenture or any other Related
Document, which amendment requires the consent of the Requisite Investors,
without having received the prior written consent of the Requisite
Noteholders;

    

    (f)           they
shall not agree to any replacement or successor to the Intermediary or the
addition of any new Manufacturer as an Eligible Program Manufacturer, in each
case without having received the prior written consent of the Requisite
Noteholders;

    

    (g)           they
shall not permit the aggregate Capitalized Cost for all Vehicles purchased in
any model year that are not subject to a Manufacturer Program to exceed 85% of
the aggregate MSRP (Manufacturer Suggested Retail Price) of all such Vehicles;
provided, however, that they
shall not modify the customary buying patterns or purchasing criteria used
by the Administrator and its Affiliates with respect to the Vehicles if the
primary purpose of such modification is to comply with this
covenant;

    

    (h)           with
respect to any Replacement Credit Agreement, they will provide notice of such
Replacement Credit Agreement, together with a copy of the proposed Replacement
Credit Agreement, to Moody’s and Standard & Poor’s no less than ten (10)
days prior to the anticipated effective date for such Replacement Credit
Agreement;

    

    (i)           
they shall provide to the  Administrative Agent and each Funding
Agent, on each Determination Date, a calculation of the Series 2008-1 Standard
& Poor’s Enhancement Percentage, the Series 2008-1 Incremental Enhancement
Amount, the Standard & Poor’s Excluded Receivable Amount, the Series 2008-1
Standard & Poor’s Enhancement Amount, the AESOP II Standard & Poor’s
Excluded Receivable Amount and the Series 2008-1 Standard & Poor’s
Additional Enhancement Amount, in each case, as of the last day of the Related
Month with respect to such Determination Date; and

    

    (j)         
  they shall provide the Administrative Agent with ten days’ prior
notice of any appointment of an Independent Manager in accordance with the ABRCF
Limited Liability Company Agreement; provided that if such
appointment is to fill a vacancy, such notice shall only be required to be given
as promptly as possible.

    

    ARTICLE
IX

    

    THE
ADMINISTRATIVE AGENT

    

    Section
9.1.  Appointment.  Each
of the CP Conduit Purchasers, the APA Banks and the Funding Agents hereby
irrevocably designates and appoints the Administrative Agent as the agent of
such Person under this Supplement and irrevocably authorizes the Administrative
Agent, in such capacity, to take such action on its behalf under the provisions
of this Supplement and to exercise such powers and perform such duties as are
expressly delegated to the Administrative Agent by the terms of this Supplement,
together with such other powers as are reasonably incidental
thereto.   Notwithstanding any provision to the contrary
elsewhere in this Supplement, the Administrative Agent shall not have any duties
or responsibilities except those expressly set forth herein, or any fiduciary
relationship with any CP Conduit Purchaser, any APA Bank or any Funding Agent,
and no implied covenants, functions, responsibilities, duties, obliga­tions
or liabilities shall be read into this Supplement or otherwise exist against the
Administrative Agent.

    

    
      
        
           

        

        
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    Section
9.2.  Delegation of
Duties.  The Administrative Agent may execute any of its duties
under this Supplement by or through agents or attorneys-in-fact and shall be
entitled to advice of counsel concerning all matters pertaining to such
duties.  The Administrative Agent shall not be responsible for the
negligence or misconduct of any agents or attorneys-in-fact selected by it with
reasonable care.

    

    Section
9.3.  Exculpatory
Provisions.  Neither the Administrative Agent nor any of its
officers, directors, employees, agents, attorneys-in-fact or Affiliates shall be
(i) liable for any action lawfully taken or omitted to be taken by it or such
Person under or in connection with the Base Indenture, this Supplement or any
other Related Document (except to the extent that any of the foregoing are found
by a final and nonappealable decision of a court of competent jurisdiction to
have resulted from its or such Person’s own gross negligence or willful
misconduct) or (ii) responsible in any manner to any of the CP Conduit
Purchasers, the APA Banks or the Funding Agents for any recitals, statements,
representations or warranties made by ABRCF, the Lessors, the Lessees, the
Permitted Sublessees, the Intermediary, the Administrator or any officer thereof
contained in this Supple­ment or any other Related Document or in any
certificate, report, statement or other document referred to or provided for in,
or received by the Administra­tive Agent under or in connection with, this
Supplement or any other Related Document or for the value, validity,
effectiveness, genuineness, enforceability or sufficiency of this Supplement,
any other Related Document, or for any failure of any of ABRCF, the Lessors, the
Lessees, the Permitted Sublessees, the Intermediary or the Administrator to
perform its obligations hereunder or thereunder.  The Administrative
Agent shall not be under any obligation to any CP Conduit Purchaser, any APA
Bank or any Funding Agent to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Supplement, any other Related Document or to inspect the properties, books or
records of ABRCF, the Lessors, the Lessees, the Permitted Sublessees, the
Intermediary or the Administrator.

    

    Section
9.4.  Reliance by Administrative
Agent.  The Administrative Agent shall be entitled to rely, and
shall be fully protected in relying, upon any writing, resolution, notice,
consent, certificate, affidavit, letter, telecopy, telex or teletype message,
statement, order or other document or conversation believed by it to be genuine
and correct and to have been signed, sent or made by the proper Person or
Persons and upon advice and statements of legal counsel (includ­ing, without
limitation, counsel to ABRCF or the Administrator), independent accountants and
other experts selected by the Administrative Agent.  The
Administrative Agent may deem and treat the registered holder of any Series
2008-1 Note as the owner thereof for all purposes unless a written notice of
assignment, negotiation or transfer thereof shall have been filed with the
Administrative Agent.  The Administrative Agent shall be fully
justified in failing or refusing to take any action under this Supplement or any
other Related Document unless it shall first receive such advice or concurrence
of the Requisite Noteholders, as it deems appropriate or it shall first be
indemnified to its satisfaction by the Funding Agents against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action.  The Administrative Agent shall in
all cases be fully protected in acting, or in refraining from acting, under this
Supplement and the other Related Documents in accordance with a request of the
Requisite Noteholders (unless, in the case of any action relating to the giving
of consent hereunder, the giving of such consent requires the consent of all
Series 2008-1 Noteholders), and such request and any action taken or failure to
act pursuant thereto shall be binding upon all the CP Conduit Purchasers, the
APA Banks and the Funding Agents.

    

    
      
        
           

        

        
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    Section
9.5.  Notice
of Administrator Default or Amortization Event or Potential Amortization
Event.  The Administrative Agent shall not be deemed to have
knowledge or notice of the occurrence of any Amortization Event or Potential
Amortization Event or any Administrator Default unless the Administrative Agent
has received written notice from a CP Conduit Purchaser, an APA Bank, a Funding
Agent, ABRCF or the Administrator referring to the Indenture or this Supplement,
describing such Amortization Event or Potential Amortization Event, or
Adminis­tra­tor Default and stating that such notice is a “notice of an
Amortization Event or Potential Amortization Event” or “notice of an
Administrator Default,” as the case may be.  In the event that the
Administrative Agent receives such a notice, the Administrative Agent shall give
notice thereof to the Funding Agents, the Trustee, ABRCF and the
Administrator.  The Administrative Agent shall take such action with
respect to such event as shall be reasonably directed by the Requisite
Noteholders, provided that unless
and until the Adminis­trative Agent shall have received such directions, the
Administrative Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such event as it shall deem
advisable in the best interests of the Purchaser Groups.

    

    Section
9.6.  Non-Reliance on the
Administrative Agent and Other Purchaser Groups.  Each of the
CP Conduit Purchasers, the APA Banks and the Funding Agents expressly
acknowledges that neither the Administrative Agent nor any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates has made any
representations or warranties to it and that no act by the Administrative Agent
hereinafter taken, including any review of the affairs of ABRCF, the Lessors,
the Lessees, the Permitted Sublessees, the Intermediary or the Administrator
shall be deemed to constitute any representation or warranty by the
Administrative Agent to any such Person.  Each of the CP Conduit
Purchasers, the APA Banks and the Funding Agents repre­sents to the
Administrative Agent that it has, independently and without reliance upon the
Administra­tive Agent or any other CP Conduit Purchaser, APA Bank or Funding
Agent and based on such documents and information as it has deemed appropriate,
made its own apprai­sal of and investi­ga­tion into the business,
operations, property, financial and other condi­tion and creditworthiness of
ABRCF, the Lessors, the Lessees, the Permitted Sublessees, the Intermediary and
the Administrator and made its own decision to enter into this
Supplement.  Each of the CP Conduit Purchasers, the APA Banks and the
Funding Agents also represents that it will, independently and without reliance
upon the Administrative Agent or any other CP Conduit Purchaser, APA Bank or
Funding Agent, and based on such docu­ments and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and deci­sions in taking or not taking action under this Supplement and the
other Related Documents, and to make such investigation as it deems necessary to
inform itself as to the business, opera­tions, property, financial and other
condition and creditworthiness of ABRCF, the Lessors, the Lessees, the Permitted
Sublessees, the Intermediary and the Adminis­trator.  Except for
notices, reports and other documents expressly required to be furnished to the
Funding Agents by the Administrative Agent hereunder, the Administrative Agent
shall have no duty or responsibility to provide any CP Conduit Purchaser, any
APA Bank or any Funding Agent with any credit or other information concerning
the busi­ness, operations, property, condi­tion (financial or
otherwise), prospects or creditworthiness of ABRCF, the Lessors, the Lessees,
the Permitted Sublessees, the Intermediary or the Administrator which may come
into the possession of the Administrative Agent or any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates.

    

    
      
        
           

        

        
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    Section
9.7.  Indemnification.  Each
of the APA Banks in a Purchaser Group agrees to indemnify the Administrative
Agent in its capacity as such (to the extent not reim­bursed by ABRCF and
the Administrator and without limiting the obligation of ABRCF and the
Administrator to do so), ratably according to their respective Commitment
Percentages (or, if indemnification is sought after the date upon which the
Commitments shall have terminated, ratably in accordance with their respective
Purchaser Group Invested Amounts) in effect on the date on which indemnification
is sought under this Section 9.7 (or if indemnification is sought after the date
upon which the Commitments shall have terminated and the Purchaser Group
Invested Amounts shall have been reduced to zero, ratably in accordance with
their Commitment Percentages immediately prior to their termination) from and
against any and all liabilities, obligations, losses, damages, penalties,
actions, judgments, suits, costs, expenses or disbursements of any kind
whatsoever which may at any time be imposed on, incurred by or asserted against
the Administrative Agent in any way relating to or arising out of this
Supplement, any of the other Related Documents or any documents contemplated by
or referred to herein or therein or the transactions contemplated hereby or
thereby or any action taken or omitted by the Administrative Agent under or in
connec­tion with any of the foregoing; provided that no APA Bank or Funding
Agent shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from the Administrative
Agent’s gross negligence or willful misconduct.  The agreements in
this Section shall survive the payment of all amounts payable
hereunder.

    

    Section
9.8.  The
Administrative Agent in Its Individual Capacity.  The
Administrative Agent and its Affiliates may make loans to, accept deposits from
and generally engage in any kind of business with ABRCF, the Administrator or
any of their Affiliates as though the Administrative Agent were not the
Administrative Agent hereunder.  With respect to any Series 2008-1
Note held by the Administrative Agent, the Administrative Agent shall have the
same rights and powers under this Supplement and the other Related Documents as
any APA Bank or Funding Agent and may exercise the same as though it were not
the Administrative Agent, and the terms “APA Bank,” and “Funding Agent” shall
include the Administrative Agent in its individual capacity.

    

    Section
9.9.  Resignation of
Administrative Agent; Successor Administrative Agent.  The
Administrative Agent may resign as Administrative Agent at any time by giving 30
days’ notice to the Funding Agents, the Trustee, ABRCF and the
Administrator.  If JPMorgan Chase shall resign as Administrative Agent
under this Supplement, then the Requisite Noteholders shall appoint a successor
administrative agent from among the Funding Agents, which successor
administrative agent shall be approved by ABRCF and the Administrator (which
approval shall not be unreasonably withheld or delayed) whereupon such successor
agent shall succeed to the rights, powers and duties of the Administrative
Agent, and the term “Administrative Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Administrative
Agent’s rights, powers and duties as Administrative Agent shall be terminated,
without any other or further act or deed on the part of such former
Administrative Agent or any of the parties to this Supplement.  If no
successor administrative agent has accepted appointment as Administrative Agent
prior to the effective date of the resignation of the Administrative Agent, the
retiring Administrative Agent may appoint, after consulting with the Funding
Agents, the Administrator and ABRCF, a successor Administrative Agent from among
the Funding Agents.  If no successor Administrative Agent has accepted
appointment by the date which is thirty (30) days following a retiring
Administrative Agent’s notice of resignation, the retiring Administrative
Agent’s resignation shall nevertheless thereupon become effective and the
Administrator shall assume and perform all of the duties of the Administrative
Agent hereunder until such time, if any, as the Requisite Noteholders appoint a
successor agent as provided for above.  After any retiring
Administrative Agent’s resignation as Administrative Agent, the provisions of
this Article IX shall inure to its benefit as to any actions taken or omitted to
be taken by it while it was Administrative Agent under this
Supplement.

    

    
      
        
           

        

        
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    ARTICLE
X

    

    THE
FUNDING AGENTS

    

    Section
10.1.  Appointment.  Each
CP Conduit Purchaser and each APA Bank with respect to such CP Conduit Purchaser
hereby irrevocably designates and appoints the Funding Agent set forth next to
such CP Conduit Purchaser’s name on Schedule I as the agent of such Person under
this Supplement and irrevocably authorizes such Funding Agent, in such capacity,
to take such action on its behalf under the provisions of this Supplement and to
exercise such powers and perform such duties as are expressly delegated to such
Funding Agent by the terms of this Supplement, together with such other powers
as are reasonably incidental thereto.   Notwithstanding any
provision to the contrary elsewhere in this Supplement, each Funding Agent shall
not have any duties or responsibilities except those expressly set forth herein,
or any fiduciary relationship with any CP Conduit Purchaser or APA Bank and no
implied covenants, functions, responsibilities, duties, obliga­tions or
liabilities shall be read into this Supplement or otherwise exist against each
Funding Agent.

    

    Section
10.2.  Delegation of
Duties.  Each Funding Agent may execute any of its duties under
this Supplement by or through agents or attorneys-in-fact and shall be entitled
to advice of counsel concerning all matters pertaining to such
duties.  Each Funding Agent shall not be responsible to the CP Conduit
Purchaser or any APA Bank in its Purchaser Group for the negligence or
misconduct of any agents or attorneys in-fact selected by it with reasonable
care.

    

    Section
10.3.  Exculpatory
Provisions.  Each Funding Agent and any of its officers,
directors, employees, agents, attorneys-in-fact or Affiliates shall not be (i)
liable for any action lawfully taken or omitted to be taken by it or such Person
under or in connection with the Base Indenture, this Supplement or any other
Related Document (except to the extent that any of the foregoing are found by a
final and nonappealable decision of a court of competent jurisdiction to have
resulted from its or such Person’s own gross negligence or willful misconduct)
or (ii) responsible in any manner to any of the CP Conduit Purchasers and/or APA
Banks for any recitals, statements, representations or warranties made by ABRCF,
the Lessors, the Lessees, the Permitted Sublessees, the Intermediary, the
Administrator, the Administrative Agent, or any officer thereof contained in
this Supple­ment or any other Related Document or in any certificate,
report, statement or other document referred to or provided for in, or received
by such Funding Agent under or in connection with, this Supplement or any other
Related Document or for the value, validity, effectiveness, genuineness,
enforceability or sufficiency of this Supplement, any other Related Document, or
for any failure of any of ABRCF, the Lessors, the Lessees, the Permitted
Sublessees, the Intermediary, the Administrative Agent, or the Administrator to
perform its obligations hereunder or thereunder.  Each Funding Agent
shall not be under any obligation to the CP Conduit Purchaser or any APA Bank in
its Purchaser Group to ascertain or to inquire as to the observance or
performance of any of the agreements contained in, or conditions of, this
Supplement, any other Related Document or to inspect the properties, books or
records of ABRCF, the Lessors, the Lessees, the Permitted Sublessees, the
Intermediary, the Administrative Agent, or the Administrator.

    

    
      
        
           

        

        
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    Section
10.4.  Reliance by Each Funding
Agent.  Each Funding Agent shall be entitled to rely, and shall
be fully protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telecopy, telex or teletype message, statement,
order or other document or conversation believed by it to be genuine and correct
and to have been signed, sent or made by the proper Person or Persons and upon
advice and statements of legal counsel (includ­ing, without limitation,
counsel to ABRCF or the Administrator), independent accountants and other
experts selected by such Funding Agent.  Each Funding Agent shall be
fully justified in failing or refusing to take any action under this Supplement
or any other Related Document unless it shall first receive such advice or
concurrence of the Related Purchaser Group, as it deems appropriate or it shall
first be indemnified to its satisfaction by the Related Purchaser Group against
any and all liability and expense which may be incurred by it by reason of
taking or continuing to take any such action.

    

    Section
10.5.  Notice of Administrator
Default or Amortization Event or Potential Amortization
Event.  Each Funding Agent shall not be deemed to have
knowledge or notice of the occurrence of any Amortization Event or Potential
Amortization Event or any Administrator Default unless such Funding Agent has
received written notice from a CP Conduit Purchaser, an APA Bank, ABRCF, the
Administrative Agent or the Administrator referring to the Indenture or this
Supplement, describing such Amortization Event or Potential Amortization Event,
or Adminis­tra­tor Default and stating that such notice is a “notice of
an Amortization Event or Potential Amortization Event” or “notice of an
Administrator Default,” as the case may be.  In the event that any
Funding Agent receives such a notice, such Funding Agent shall give notice
thereof to the CP Conduit Purchaser and APA Banks in its Purchaser
Group.  Such Funding Agent shall take such action with respect to such
event as shall be reasonably directed by the CP Conduit Purchaser and APA Banks
in its Purchaser Group, provided that unless
and until such Funding Agent shall have received such directions, such Funding
Agent may (but shall not be obligated to) take such action, or refrain from
taking such action, with respect to such event as it shall deem advisable in the
best interests of the CP Conduit Purchaser and APA Banks in its Purchaser
Group.

    

    
      
        
           

        

        
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    Section
10.6.  Non-Reliance on Each Funding
Agent and Other Purchaser Groups.  Each CP Conduit Purchaser
and each of the related APA Banks expressly acknowledge that neither its Funding
Agent nor any of its officers, directors, employees, agents, attorneys-in-fact
or Affiliates has made any representations or warranties to it and that no act
by such Funding Agent hereinafter taken, including any review of the affairs of
ABRCF, the Lessors, the Lessees, the Permitted Sublessees, the Intermediary, the
Administrative Agent, or the Administrator shall be deemed to constitute any
representation or warranty by such Funding Agent to any such
Person.  Each CP Conduit Purchaser and each of the related APA Banks
repre­sents to its Funding Agent that it has, independently and without
reliance upon such Funding Agent and based on such documents and information as
it has deemed appropriate, made its own apprai­sal of and
investi­ga­tion into the business, operations, property, financial and
other condi­tion and creditworthiness of ABRCF, the Lessors, the Lessees,
the Permitted Sublessees, the Intermediary, the Administrative Agent, and the
Administrator and made its own decision to enter into this
Supplement.  Each CP Conduit Purchaser and each of the related APA
Banks also represents that it will, independently and without reliance upon its
Funding Agent and based on such docu­ments and information as it shall deem
appropriate at the time, continue to make its own credit analysis, appraisals
and deci­sions in taking or not taking action under this Supplement and the
other Related Documents, and to make such investigation as it deems necessary to
inform itself as to the business, opera­tions, property, financial and other
conditions and creditworthiness of ABRCF, the Lessors, the Lessees, the
Permitted Sublessees, the Intermediary, the Administrative Agent, and the
Administrator.

    

    Section
10.7.  Indemnification.  Each
APA Bank in a Purchaser Group agrees to indemnify its Funding Agent in its
capacity as such (to the extent not reim­bursed by ABRCF and the
Administrator and without limiting the obligation of ABRCF and the Administrator
to do so), ratably according to its respective APA Bank Percentage in effect on
the date on which indemnification is sought under this Section 10.7 (or if
indemnification is sought after the date upon which the Commitments shall have
been terminated, ratably in accordance with its APA Bank Percentage at the time
of termination) from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever which may at any time be imposed on, incurred by or
asserted against such Funding Agent in any way relating to or arising out of
this Supplement, any of the other Related Documents or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or any action taken or omitted by such Funding
Agent under or in connec­tion with any of the foregoing; provided that no APA
Bank shall be liable for the payment of any portion of such liabilities,
obligations, losses, damages, penalties, actions, judgments, suits, costs,
expenses or disbursements that are found by a final and nonappealable decision
of a court of competent jurisdiction to have resulted from such related Funding
Agent’s gross negligence or willful misconduct.  The agreements in
this Section shall survive the payment of all amounts payable
hereunder.

    

    
      
        
           

        

        
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    ARTICLE
XI

    

    GENERAL

    

    Section
11.1.  Successors and
Assigns.  iii)  This Supplement shall be binding upon
and inure to the benefit of the parties hereto and their respective successors
and assigns, except that ABRCF may not assign or transfer any of its rights
under this Supplement without the prior written consent of all of the Series
2008-1 Noteholders, no CP Conduit Purchaser may assign or transfer any of its
rights under this Supplement other than in accordance with the Asset Purchase
Agreement with respect to such CP Conduit Purchaser or otherwise to the APA Bank
with respect to such CP Conduit Purchaser or a Program Support Provider with
respect to such CP Conduit Purchaser or pursuant to clause (b) or (e) below of
this Section 11.1 and no APA Bank may assign or transfer any of its rights or
obligations under this Supplement except to a Program Support Provider or
pursuant to clause (c), (d) or (e) below of this Section 11.1.

    

    (b)           Without
limiting the foregoing, each CP Conduit Purchaser may assign all or a portion of
the Purchaser Group Invested Amount with respect to such CP Conduit Purchaser
and its rights and obli­ga­tions under this Supplement and any other
Related Documents to which it is a party to a Conduit Assignee with respect to
such CP Conduit Purchaser.  Prior to or concurrently with the
effectiveness of any such assignment (or if impracticable, immediately
thereafter), the assigning CP Conduit Purchaser shall notify the Administrative
Agent, ABRCF, the Trustee and the Administrator thereof.  Upon such
assignment by a CP Conduit Purchaser to a Conduit Assignee, (A) such Conduit
Assignee shall be the owner of the Purchaser Group Invested Amount or such
portion thereof with respect to such CP Conduit Purchaser, (B) the related
administrative or managing agent for such Conduit Assignee will act as the
administrative agent for such Conduit Assignee hereunder, with all corresponding
rights and powers, express or implied, granted to the Funding Agent hereunder or
under the other Related Documents, (C) such Conduit Assignee and its liquidity
support provider(s) and credit support provider(s) and other related parties
shall have the benefit of all the rights and protections provided to such CP
Conduit Purchaser herein and in the other Related Documents (including, without
limitation, any limitation on recourse against such Conduit Assignee as provided
in this paragraph), (D) such Conduit Assignee shall assume all of such CP
Conduit Purchaser’s obligations, if any, hereunder or under the Base Indenture
or under any other Related Document with respect to such portion of the
Purchaser Group Invested Amount and such CP Conduit Purchaser shall be released
from such obligations, (E) all distributions in respect of the Purchaser Group
Invested Amount or such portion thereof with respect to such CP Conduit
Purchaser shall be made to the applicable agent or administrative agent, as
appli­cable, on behalf of such Conduit Assignee, (F) the definitions of the
terms “Monthly Funding Costs” and “Discount” shall be determined in the manner
set forth in the definition of “Monthly Funding Costs” and “Discount” applicable
to such CP Conduit Purchaser on the basis of the interest rate or discount
applicable to commercial paper issued by such Conduit Assignee (rather than such
CP Conduit Purchaser), (G) the defined terms and other terms and provisions
of this Supplement, the Base Indenture and the other Related Documents shall be
interpreted in accordance with the foregoing, and (H) if requested by the
Administrative Agent or the agent or administrative agent with respect to the
Conduit Assignee, the parties will execute and deliver such further agreements
and documents and take such other actions as the Administrative Agent or such
agent or administrative agent may reasonably request to evidence and give effect
to the foregoing.  No assignment by any CP Conduit Purchaser to a
Conduit Assignee of the Purchaser Group Invested Amount with respect to such CP
Conduit Purchaser shall in any way diminish the obli­gations of the APA Bank
with respect to such CP Conduit Purchaser under Section 2.3 to fund any
Increase.

    

    
      
        
           

        

        
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    (c)           Any
APA Bank may, in the ordinary course of its business and in accor­dance with
applicable law, at any time sell all or any part of its rights and obligations
under this Supplement and the Series 2008-1 Notes, with the prior written
consent of the Administrative Agent, ABRCF and the Administrator (in each case,
which consent shall not be unreasonably withheld), to one or more banks (an
“Acquiring APA
Bank”) pursuant to a transfer supplement, substantially in the form of
Exhibit H (the
“Transfer
Supplement”), executed by such Acquiring APA Bank, such assigning APA
Bank, the Funding Agent with respect to such APA Bank, the Administrative Agent,
ABRCF and the Administrator and delivered to the Administrative
Agent.  Notwithstanding the foregoing, no APA Bank shall so sell its
rights hereunder if such Acquiring APA Bank is not an Eligible
Assignee.

    

    (d)           Any
APA Bank may, in the ordinary course of its business and in accor­dance with
applicable law, at any time sell to one or more financial institutions or other
entities (“Participants”)
participations in its APA Bank Percentage of the Commitment Amount with respect
to it and the other APA Banks included in the related Purchaser Group, its
Series 2008-1 Note and its rights hereunder pur­suant to documentation in
form and substance satisfactory to such APA Bank and the Participant; provided, however, that (i) in
the event of any such sale by an APA Bank to a Participant, (A) such APA Bank’s
obligations under this Supplement shall remain unchanged, (B) such APA Bank
shall remain solely responsible for the performance thereof and (C) ABRCF and
the Administrative Agent shall continue to deal solely and directly with such
APA Bank in connection with its rights and obligations under this Supplement and
(ii) no APA Bank shall sell any participating interest under which the
Participant shall have rights to approve any amend­ment to, or any consent
or waiver with respect to, this Supplement, the Base Indenture or any Related
Document, except to the extent that the approval of such amendment, consent or
waiver otherwise would require the unanimous consent of all APA Banks
hereunder.  A Participant shall have the right to receive Article VII
Costs but only to the extent that the related selling APA Bank would have had
such right absent the sale of the related participation and, with respect to
amounts due pursuant to Section 7.2, only to the extent such Participant shall
have complied with the provisions of Section 7.2(e) and (g) as if such
Participant were the Administrative Agent, a Funding Agent, a Program Support
Provider or a member of a Purchaser Group.

    

    (e)           Any
CP Conduit Purchaser and the APA Bank with respect to such CP Conduit Purchaser
may at any time sell all or any part of their respective rights and obligations
under this Supplement and the Series 2008-1 Notes, with the prior written
consent of the Administrative Agent, ABRCF and the Administrator (in each case,
which consent shall not be unreasonably withheld), to a multi-seller commercial
paper conduit and one or more banks providing support to such multi-seller
commercial paper conduit (an “Acquiring Purchaser
Group”) pursuant to a transfer supplement, substantially in the form of
Exhibit I (the
“Purchaser Group
Supplement”), executed by such Acquiring Purchaser Group, the Funding
Agent with respect to such Acquiring Purchaser Group (including the CP Conduit
Purchaser and the APA Banks with respect to such Purchaser Group), such
assigning CP Conduit Purchaser and the APA Banks with respect to such CP Conduit
Purchaser, the Funding Agent with respect to such assigning CP Conduit Purchaser
and APA Banks, the Administrative Agent, ABRCF and the Administrator and
delivered to the Administrative Agent.

    

    
      
        
           

        

        
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    (f)           ABRCF
authorizes each APA Bank to disclose to any Participant or Acquiring APA Bank
(each, a “Transferee”) and any
prospective Transferee any and all financial information in such APA Bank’s
possession concerning ABRCF, the Collateral, the Administrator and the Related
Documents which has been delivered to such APA Bank by ABRCF or the
Administrator in connection with such APA Bank’s credit evaluation of ABRCF, the
Collateral and the Administrator.

    

    Section
11.2.  Securities
Law.  Each CP Conduit Purchaser and APA Bank hereby represents
and warrants to ABRCF that it is an “accredited investor” as such term is
defined in Rule 501(a) of Regulation D under the Securities Act and has
sufficient assets to bear the economic risk of, and sufficient knowledge and
exper­ience in financial and business matters to evaluate the merits and
risks of, its investment in a Series 2008-1 Note.  Each CP Conduit
Purchaser and APA Bank agrees that its Series 2008-1 Note will be acquired for
invest­ment only and not with a view to any public distribution thereof, and
that such CP Conduit Purchaser and APA Bank will not offer to sell or otherwise
dispose of its Series 2008-1 Note (or any interest therein) in violation of any
of the registration requirements of the Securities Act, or any appli­cable
state or other securities laws.  Each CP Conduit Purchaser and APA
Bank acknowledges that it has no right to require ABRCF to register its Series
2008-1 Note under the Securities Act or any other securities
law.  Each CP Conduit Purchaser and APA Bank hereby confirms and
agrees that in connection with any transfer by it of an interest in the Series
2008-1 Note, such CP Conduit Purchaser or APA Bank has not engaged and will not
engage in a general soli­ci­ta­tion or general advertising including
advertisements, articles, notices or other communi­cations published in any
newspaper, magazine or similar media or broadcast over radio or television, or
any seminar or meeting whose attendees have been invited by any general
solicitation or general advertising.

    

    Section
11.3.  Adjustments;
Set-off.  iv)  If any CP Conduit Purchaser or APA
Bank in a Purchaser Group (a “Benefited Purchaser
Group”) shall at any time receive in respect of its Purchaser Group
Invested Amount any distribution of principal, interest, Commitment Fees or any
interest thereon, or receive any collateral in respect thereof (whether
voluntarily or involuntarily, by set-off or otherwise) in a greater
propor­tion than any such distribution received by any other Purchaser
Group, if any, in respect of such other Purchaser Group’s Purchaser Group
Invested Amount, or interest thereon, the APA Banks in such Benefited Purchaser
Group shall purchase for cash from the CP Conduit Purchaser or APA Banks in the
other Purchaser Group such portion of such other CP Conduit Purchaser’s or APA
Banks’ interest in the Series 2008-1 Notes, or shall provide such other CP
Conduit Purchaser or APA Bank with the benefits of any such collateral, or the
proceeds thereof, as shall be neces­sary to cause such Benefited Purchaser
Group to share the excess payment or benefits of such collateral or proceeds
ratably with the other Purchaser Group; provided, however, that if all
or any por­tion of such excess payment or benefits is thereafter recovered
from such Benefited Purchaser Group, such purchase shall be rescinded, and the
purchase price and benefits returned, to the extent of such recovery, but
without interest.  ABRCF agrees that any CP Conduit Purchaser or APA
Bank so purchasing a portion of another Purchaser Group’s Purchaser Group
Invested Amount may exercise all rights of payment (including, without
limitation, rights of set-off) with respect to such portion as fully as if such
CP Conduit Purchaser or APA Bank were the direct holder of such
portion.

    

    
      
        
           

        

        
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    (b)           In
addition to any rights and remedies of the Purchaser Groups provided by law,
each CP Conduit Purchaser and APA Bank shall have the right, without prior
notice to ABRCF, any such notice being expressly waived by ABRCF to the extent
permitted by applicable law, upon any amount becom­ing due and payable by
ABRCF hereunder or under the Series 2008-1 Notes to set-off and appro­priate
and apply against any and all deposits (general or special, time or demand,
provi­sional or final), in any currency, and any other credits, indebtedness
or claims, in any currency, in each case whether direct or indirect, absolute or
contingent, matured or unmatured, at any time held or owing by such Purchaser
Group to or for the credit or the account of ABRCF.  Each CP Conduit
Purchaser and APA Bank agrees promptly to notify ABRCF, the Administrator and
the Administrative Agent after any such set-off and appli­ca­tion made
by such CP Conduit Purchaser or APA Bank; provided that the
failure to give such notice shall not affect the validity of such set-off and
application.

    

    Section
11.4.  No
Bankruptcy Petition.  v)  Each of the Administrative
Agent, the CP Conduit Purchasers, the APA Banks and the Funding Agents hereby
covenants and agrees that, prior to the date which is one year and one day after
the later of payment in full of all Series of Notes, it will not institute
against, or join any other Person in instituting against, ABRCF any bankruptcy,
reorganization, arrangement, insolvency or liquidation proceedings, or other
similar proceedings under any federal or state bankruptcy or similar
law.

    

    (b)           ABRCF,
the Trustee, the Administrative Agent, the Administrator, each CP Conduit
Purchaser, each Funding Agent and each APA Bank hereby covenants and agrees
that, prior to the date which is one year and one day after the payment in full
of all outstanding Commercial Paper issued by, or for the benefit of, a CP
Conduit Purchaser, it will not institute against, or join any other Person in
instituting against, such CP Conduit Purchaser (or the Person issuing Commercial
Paper for the benefit of such CP Conduit Purchaser) any bankruptcy,
reorganization, arrangement, insolvency or liquida­tion proceedings, or
other similar proceedings under any federal or state bankruptcy or similar
law.

    

    (c)           This
covenant shall survive the termination of this Supplement and the Base Indenture
and the payment of all amounts payable hereunder and thereunder.

    

    Section
11.5.  Limited
Recourse.  vi)  Notwithstanding anything to the
contrary contained herein, any obligations of each CP Conduit Purchaser
hereunder to any party hereto are solely the corporate or limited liability
company obligations of such CP Conduit Purchaser and shall be payable at such
time as funds are received by or are available to such CP Conduit Purchaser in
excess of funds necessary to pay in full all of its outstanding Commercial Paper
and, to the extent funds are not available to pay such obligations, the claims
relating thereto shall not constitute a claim against such CP Conduit Purchaser
but shall continue to accrue.  Each party hereto agrees that the
payment of any claim (as defined in Section 101 of Title 11 of the Bankruptcy
Code) of any such party against a CP Conduit Purchaser shall be subordinated to
the payment in full of all of its Commercial Paper.

    

    
      
        
           

        

        
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    (b)           No
recourse under any obligation, covenant or agreement of any CP Conduit Purchaser
contained herein shall be had against any incorporator, stockholder, member,
officer, director, employee or agent of such CP Conduit Purchaser, its
administrative agent, the Funding Agent with respect to such CP Conduit
Purchaser or any of their Affiliates by the enforcement of any assessment or by
any legal or equitable proceeding, by virtue of any statute or otherwise; it
being expressly agreed and understood that this Supplement is solely a corporate
or limited liability company obligation of such CP Conduit Purchaser
individually, and that no personal liability whatever shall attach to or be
incurred by any incorporator, stockholder, member, officer, director, employee
or agent of such CP Conduit Purchaser, its administrative agent, the Funding
Agent with respect to such CP Conduit Purchaser or any of its Affiliates (solely
by virtue of such capacity) or any of them under or by reason of any of the
obligations, covenants or agreements of such CP Conduit Purchaser con­tained
in this Agreement, or implied therefrom, and that any and all personal liability
for breaches by such CP Conduit Purchaser of any of such obligations, covenants
or agreements, either at common law or at equity, or by statute, rule or
regulation, of every such incorporator, stockholder, member, officer, director,
employee or agent is hereby expressly waived as a condition of and in
consideration for the execution of this Supplement; provided that the
foregoing shall not relieve any such Person from any liability it might
otherwise have as a result of fraudulent actions taken or omissions made by
them.  The provisions of this Section 11.5 shall survive
termi­nation of this Supplement.

    

    Section
11.6.  Costs
and Expenses.  ABRCF agrees to pay on demand (x) all reasonable
out-of-pocket costs and expenses of the Administrative Agent (including, without
limitation, reasonable fees and disbursements of counsel to the Administrative
Agent) and of each Purchaser Group (including in connection with the
preparation, execution and delivery of this Supplement the reasonable fees and
disbursements of one counsel, other than counsel to the Administrative Agent,
for all such Purchaser Groups) in connection with (i) the preparation, execution
and delivery of this Supplement and the other Related Documents and any
amendments or waivers of, or consents under, any such documents and (ii) the
enforcement by the Administrative Agent or any Funding Agent of the obligations
and liabilities of ABRCF, the Lessors, the Lessees, the Permitted Sublessees,
the Intermediary and the Administrator under the Indenture, this Supplement, the
other Related Documents or any related document and all costs and expenses, if
any (including reasonable counsel fees and expenses), in connection with the
enforcement of this Agreement and the other Related Documents and (y) all
reasonable out of pocket costs and expenses of the Administrative Agent
(including, without limitation, reasonable fees and disbursements of counsel to
the Administrative Agent) in connection with the administration of this
Supplement and the other Related Documents.  Any payments made by
ABRCF pursuant to this Section 11.6 shall be made solely from funds available in
the Series 2008-1 Distribution Account for the payment of Article VII Costs,
shall be non-recourse other than with respect to such funds, and shall not
constitute a claim against ABRCF to the extent that insufficient funds exist to
make such payment.  The agreements in this Section shall survive the
termination of this Supplement and the Base Indenture and the payment of all
amounts payable hereunder and thereunder.

    

    Section
11.7.  Exhibits.  The
following exhibits attached hereto supplement the exhibits included in the Base
Indenture.

    

    
      	
              Exhibit A:

            	 	
              Form
      of Variable Funding Note

            
	
              Exhibit B:

            	 	
              Form
      of Increase Notice

            
	
              Exhibit C:

            	 	
              Form
      of Consent

            
	
              Exhibit D:

            	 	
              Form
      of Series 2008-1 Demand Note

            
	
              Exhibit E:

            	 	
              Form
      of Series 2008-1 Letter of Credit

            
	
              Exhibit F:

            	 	
              Form
      of Lease Payment Deficit Notice

            
	
              Exhibit G:

            	 	
              Form
      of Demand Notice

            
	
              Exhibit H:

            	 	
              Form
      of Transfer Supplement

            
	
              Exhibit I:

            	 	
              Form
      of Purchaser Group Supplement

            

    

    

    
      
        
           

        

        
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    Section
11.8.  Ratification of Base
Indenture.  As supplemented by this Supplement, the Base
Indenture is in all respects ratified and confirmed and the Base Indenture as so
supple­mented by this Supplement shall be read, taken, and construed as one
and the same instru­ment.

    

    Section
11.9.  Counterparts.  This
Supplement 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
11.10.  Governing
Law.  This Supplement shall be construed in accordance with the
law of the State of New York, and the obligations, rights and remedies of
the parties hereto shall be determined in accordance with such law.

    

    Section
11.11.  Amendments.  This
Supplement may be modified or amended from time to time in accordance with the
terms of the Base Indenture; provided, however, that if,
pur­suant to the terms of the Base Indenture or this Supplement, the consent
of the Required Note­holders is required for an amendment or
modifi­ca­tion of this Supplement, such requirement shall be satisfied
if such amendment or modification is consented to by the Requisite Noteholders;
provided, further, that any
amendment that would materially and adversely affect any Series 2008-1
Noteholder shall also require that Standard & Poor’s has confirmed that such
amendment shall not result in a withdrawal or downgrade of the rating of the
Commercial Paper issued by any CP Conduit Purchaser whose Commercial Paper is
rated by Standard & Poor’s at the time of such amendment.

    

    Section
11.12.  Discharge of
Indenture.  Notwith­standing anything to the contrary
contained in the Base Indenture, no discharge of the Indenture pursuant to
Section 11.1(b) of the Base Indenture will be effective as to the Series 2008-1
Notes without the consent of the Requisite Noteholders.

    

    Section
11.13.  Capitalization of
ABRCF.  ABRCF agrees that on the Series 2008-1 Closing Date and
on the date of any increase in the Series 2008-1 Maximum Invested Amount it will
have capitali­zation in an amount equal to or greater than 3% of the sum of
(x) the Series 2008-1 Maximum Invested Amount and (y) the invested amount of
each other Series of Notes outstanding on such date.

    

    Section
11.14.  Series 2008-1 Demand
Notes.  Other than pursuant to a demand thereon pursuant to
Section 3.5, ABRCF shall not reduce the amount of the Series 2008-1 Demand
Notes or forgive amounts payable thereunder so that the outstanding principal
amount of the Series 2008-1 Demand Notes after such reduction or forgiveness is
less than the Series 2008-1 Letter of Credit Liquidity Amount.  ABRCF
shall not agree to any amend­ment of the Series 2008-1 Demand Notes without
the consent of the Requisite Noteholders and without first satisfying the Rating
Agency Confirmation Condition and the Rating Agency Consent
Condition.

    

    
      
        
           

        

        
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    Section
11.15.  Termination of
Supplement.  This Supplement shall cease to be of further
effect when all outstanding Series 2008-1 Notes theretofore authenticated and
issued have been delivered (other than destroyed, lost, or stolen Series 2008-1
Notes which have been replaced or paid) to the Trustee for cancellation and
ABRCF has paid all sums payable hereunder and, if the Series 2008-1 Demand Note
Payment Amount on the Series 2008-1 Letter of Credit Termination Date was
greater than zero, the Series 2008-1 Cash Collateral Account Surplus shall equal
zero, the Demand Note Preference Payment Amount shall have been reduced to zero
and all amounts have been withdrawn from the Series 2008-1 Cash Collateral
Account in accordance with Section 3.8(h).

    

    Section
11.16.  Collateral Representations
and Warranties of ABRCF.  ABRCF hereby represents and warrants
to the Trustee, the Administrative Agent, each Funding Agent and each Purchaser
Group that:

    

    (a)           the
Base Indenture creates a valid and continuing security interest (as defined in
the applicable UCC) in the Collateral in favor of the Trustee for the benefit of
the Noteholders, which security interest is prior to all other liens, and is
enforceable as such as against creditors of and purchasers from
ABRCF.  This Supplement will create a valid and continuing security
interest (as defined in the applicable UCC) in the Series 2008-1 Collateral in
favor of the Trustee for the benefit of the Series 2008-1 Noteholders, which
security interest is prior to all other liens, and is enforceable as such as
against creditors of and purchasers from ABRCF.

    

    (b)           The
Collateral and the Series 2008-1 Collateral (in each case, other than the
Vehicles) consist of “instruments,” “general intangibles” and “deposit accounts”
within the meaning of the applicable UCC.

    

    (c)           ABRCF
owns and has good and marketable title to the Collateral and the Series 2008-1
Collateral free and clear of any lien, claim or encumbrance of any
Person.

    

    (d)           With
respect to the portion of the Collateral that consists of instruments, all
original executed copies of each instrument that constitute or evidence part of
the Collateral have been delivered to the Trustee.  None of the
instruments that constitute or evidence the Collateral have any marks or
notations indicating that they have been pledged, assigned or otherwise conveyed
to any Person other than the Trustee.

    

    (e)           With
respect to the portion of the Collateral that consists of general intangibles,
ABRCF has caused the filing of all appropriate financing statements in the
proper filing office in the appropriate jurisdictions under applicable law in
order to perfect the security interest in the Collateral granted to the Trustee
under the Base Indenture.

    

    
      
        
           

        

        
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    (f)           With
respect to the portion of the Collateral and the Series 2008-1 Collateral that
consists of deposit or securities accounts maintained with a bank other than the
Trustee (collectively, the “Bank Accounts”),
ABRCF has delivered to the Trustee a fully executed agreement pursuant to which
the bank maintaining the Bank Accounts has agreed to comply with all
instructions originated by the Trustee directing disposition of the funds in the
Bank Accounts without further consent by ABRCF.  The Bank Accounts are
not in the name of any person other than ABRCF or the Trustee.  ABRCF
has not consented to the bank maintaining the Bank Accounts to comply with
instructions of any person other than the Trustee.

    

    (g)           Other
than the security interest granted to the Trustee under the Base Indenture and
this Supplement, ABRCF has not pledged, assigned, sold, granted a security
interest in, or otherwise conveyed any of the Collateral or the Series 2008-1
Collateral.  ABRCF has not authorized the filing of and is not aware
of any financing statements against ABRCF that includes a description of
collateral covering the Collateral other than any financing statement under the
Base Indenture or that has been terminated.  ABRCF is not aware of any
judgment or tax lien filings against ABRCF.

    

    (h)           ABRCF
has not authorized the filing of and is not aware of any financing statements
against ABRCF that include a description of collateral covering the Collateral
other than any financing statements (i) relating to the security interest
granted to the Trustee in the Base Indenture or (ii) that has been
terminated.

    

    Section
11.17.  No
Waiver; Cumulative Remedies.  No failure to exercise and no
delay in exercising, on the part of the Trustee, the Administrative Agent, any
Funding Agent, any CP Conduit Purchaser or any APA Bank, any right, remedy,
power or privilege hereunder shall operate as a waiver thereof; nor shall any
single or partial exercise of any right, remedy, power or privilege hereunder
preclude any other or further exercise thereof or the exercise of any other
right, remedy, power or privilege.  The rights, remedies, powers and
privileges herein provided are cumulative and not exhaustive of any rights,
remedies, powers and privileges provided by law.

    

    Section
11.18.  Waiver of
Setoff.  Notwithstanding any other provision of this Supplement
or any other agreement to the contrary, all payments to the Administrative
Agent, the Funding Agents, the CP Conduit Purchasers and the APA Banks hereunder
shall be made without set-off or counterclaim.

    

    Section
11.19.  Notices.  All
notices, requests, instructions and demands to or upon any party hereto to be
effective shall be given (i) in the case of ABRCF, the Administrator and the
Trustee, in the manner set forth in Section 13.1 of the Base Indenture and (ii)
in the case of the Administrative Agent, the CP Conduit Purchasers, the APA
Banks and the Funding Agents, in writing, and, unless otherwise expressly
provided herein, shall be deemed to have been duly given or made when delivered
by hand or three days after being deposited in the mail, postage prepaid, in the
case of facsimile notice, when received, or in the case of overnight air
courier, one Business Day after the date such notice is delivered to such
overnight courier, addressed as follows in the case of the Administrative Agent
and to the addresses therefor set forth in Schedule I, in the case of the CP
Conduit Purchasers, the APA Banks and the Funding Agents; or to such other
address as may be hereafter notified by the respective parties
hereto:

    

    
      
        
           

        

        
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    Administrative
Agent:

    

    JPMorgan
Chase Bank, N.A.

    c/o
JPMorgan Securities Inc.

    10 South
Dearborn - 13th Floor

    Chicago,
IL 60670

    Attention:
Asset-Backed Finance/Bill Laird

    Fax (312)
732-1844

    

    Section
11.20.  Confidential
Information.  (a)  The Trustee and each Series 2008-1
Noteholder will maintain the confidentiality of all Confidential Information in
accordance with procedures adopted by the Trustee or such Series 2008-1
Noteholder in good faith to protect Confidential Information of third parties
delivered to such Person; provided, that such
Person may deliver or disclose Confidential Information to:  (i) such
Person’s directors, trustees, officers, employees, agents, attorneys,
independent or internal auditors and affiliates who agree to hold confidential
the Confidential Information substantially in accordance with the terms of this
Section 11.20; (ii) such Person’s financial advisors and other professional
advisors who agree to hold confidential the Confidential Information
substantially in accordance with the terms of this Section 11.20; (iii) any
other Series 2008-1 Noteholder; (iv) any Person of the type that would be, to
such Person’s knowledge, permitted to acquire Series 2008-1 Notes in accordance
with the requirements of the Indenture to which such Person sells or offers to
sell any such Series 2008-1 Note or any part thereof or any participation
therein and that agrees to hold confidential the Confidential Information
substantially in accordance with this Section 11.20 (or in accordance with such
other confidentiality procedures as are acceptable to ABRCF); (v) any federal or
state or other regulatory, governmental or judicial authority having
jurisdiction over such Person; (vi) the National Association of Insurance
Commissioners or any similar organiza­tion, or any nationally recognized
rating agency that requires access to information about the investment portfolio
of such Person, (vii) any reinsurers or liquidity or credit providers that agree
to hold confidential the Confidential Information substantially in accordance
with this Section 11.20 (or in accordance with such other confidentiality
procedures as are acceptable to ABRCF); (viii) any Person acting as a placement
agent or dealer with respect to any commercial paper (provided that any
Confidential Information provided to any such placement agent or dealer does not
reveal the identity of ABG or any of its Affiliates); (ix) any other Person with
the consent of ABRCF; or (x) any other Person to which such delivery or
disclosure may be necessary or appropriate (A) to effect compliance with any
law, rule, regulation, statute or order applicable to such Person, (B) in
response to any subpoena or other legal process upon prior notice to ABRCF
(unless prohibited by appli­cable law, rule, order or decree or other
requirement having the force of law), (C) in connec­tion with any litigation
to which such Person is a party upon prior notice to ABRCF (unless
prohi­bited by applicable law, rule, order or decree or other requirement
having the force of law) or (D) if an Amortization Event with respect to
the Series 2008-1 Notes has occurred and is continuing, to the extent such
Person may reason­ably determine such delivery and disclosure to be
necessary or appropriate in the enforcement or for the protection of the rights
and remedies under the Series 2008-1 Notes, the Indenture or any other Related
Document; and provided, further, however, that
delivery to Series 2008-1 Noteholders of any report or information required by
the terms of the Indenture to be provided to Series 2008-1 Noteholders shall not
be a viola­tion of this Section 11.20.  Each Series 2008-1
Noteholder agrees, except as set forth in clauses (v), (vi) and (x) above, that
it shall use the Confidential Information for the sole purpose of making an
investment in the Series 2008-1 Notes or administering its investment in the
Series 2008-1 Notes.  In the event of any required disclosure of the
Confidential Information by such Series 2008-1 Noteholder, such Series 2008-1
Noteholder agrees to use reasonable efforts to protect the confiden­tiality
of the Confidential Information.  Each Series 2008-1 Noteholder, by
its acceptance of a Series 2008-1 Note, will be deemed to have agreed to be
bound by and to be entitled to the benefits of this Section 11.20.

    

    
      
        
           

        

        
          95

          
            

          

        

        
           

        

      

    

    

    (b)           For
the purposes of this Section 11.20, “Confidential Information” means information
delivered to the Trustee or any Series 2008-1 Noteholder by or on behalf of
ABRCF in connection with and relating to the transactions contemplated by or
otherwise pursuant to the Indenture and the Related Documents; provided, that
such term does not include information that:  (i) was publicly known
or otherwise known to the Trustee or such Series 2008-1 Noteholder prior to the
time of such disclosure; (ii) subsequently becomes publicly known through no act
or omission by the Trustee, any Series 2008-1 Noteholder or any person acting on
behalf of the Trustee or any Series 2008-1 Noteholder; (iii) otherwise is known
or becomes known to the Trustee or any Series 2008-1 Noteholder other than (x)
through disclosure by ABRCF or (y) as a result of the breach of a fiduciary duty
to ABRCF or a contractual duty to ABRCF; or (iv) is allowed to be treated as
non-confidential by consent of ABRCF.

    

    Section
11.21.  Information.

    

    (a)           The
Trustee shall promptly provide to the Administrative Agent a copy of each
notice, opinion of counsel, certificate or other item delivered to, or required
to be provided by, the Trustee pursuant to this Supplement or any other Related
Document.

    

    (b)           ABCRF
shall promptly provide to the Administrative Agent a copy of the financial
information and any other materials required to be delivered to ABCRF
pursuant to Section 31.5(i) and (ii) under the Leases.  The
Administrative Agent shall provide copies of all such information and other
materials furnished to it by ABCRF pursuant to this Section 11.21 to each
Funding Agent.

    

    Section
11.22.  Waiver of Jury Trial,
etc.  EACH OF THE PARTIES HERETO HEREBY KNOW­INGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES (TO THE EXTENT PERMIT­TED BY APPLICABLE
LAW) ANY RIGHTS IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS SUPPLEMENT,
THE SERIES 2008-1 NOTES OR ANY OTHER SERIES 2008-1 DOCUMENTS, OR ANY COURSE OF
CONDUCT, COURSE OF DEALING, STATE­MENTS (WHETHER ORAL OR WRITTEN), OR
ACTIONS OF THE PARTIES HERETO.  THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE PARTIES HERETO TO ENTER INTO THIS SUPPLEMENT.

    

    Section
11.23.  Submission To
Jurisdiction.  EACH OF
THE PARTIES HERETO HEREBY IRREVO­CABLY SUBMITS (TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW) TO THE NON-EXCLUSIVE JURISDICTION OF ANY NEW YORK
STATE OR FEDERAL COURT SITTING IN THE BOROUGH OF MANHATTAN, NEW YORK CITY, STATE
OF NEW YORK, OVER ANY ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO
THIS SUPPLEMENT, THE SERIES 2008-1 NOTES OR ANY OTHER SERIES 2008-1 DOCUMENT AND
EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY AGREES THAT ALL CLAIMS IN RESPECT
OF SUCH ACTION OR PROCEEDING MAY BE HEARD AND DETERMINED IN SUCH NEW YORK STATE
OR FEDERAL COURT.  EACH OF THE PARTIES HERETO EACH HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION EACH MAY NOW OR
HEREAFTER HAVE, TO THE LAYING OF VENUE IN ANY SUCH ACTION OR PROCEED­ING IN
ANY SUCH COURT AS WELL AS ANY RIGHT EACH MAY NOW OR HEREAFTER HAVE, TO REMOVE
ANY SUCH ACTION OR PROCEEDING, ONCE COMMENCED, TO ANOTHER COURT ON THE GROUNDS
OF FORUM NON CONVENIENS OR
OTHERWISE.  NOTHING CONTAINED HEREIN SHALL PRECLUDE ANY PARTY HERETO
FROM BRINGING AN ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS
SUPPLEMENT, THE SERIES 2008-1 NOTES OR ANY OTHER SERIES 2008-1 DOCUMENT IN ANY
OTHER COUNTRY, STATE OR PLACE HAVING JURISDICTION OVER SUCH ACTION OR
PROCEEDING.

    

    
      
        
           

        

        
          96

          
            

          

        

        
           

        

      

    

    

    IN
WITNESS WHEREOF, each of the parties hereto have caused this Supplement to be
duly executed by their respective duly authorized officers as of the date above
first written.

    

    
      	 
      	
              AVIS
      BUDGET RENTAL CAR FUNDING (AESOP) LLC, as Issuer

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Rochelle Tarlowe

            
	 
      	
              Name:

            	
              Rochelle
      Tarlowe

            
	 
      	
              Title:

            	
              Vice
      President and Treasurer

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      	 
      	
              THE
      BANK OF NEW YORK MELLON TRUST COMPANY, N.A., as Trustee and Series 2008-1
      Agent

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Sally R. Tokich

            
	 
      	
              Name:

            	
              Sally
      R. Tokich

            
	 
      	
              Title:

            	
              Senior
      Associate

            

    

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

     

    
      	 
      	
              JPMORGAN
      CHASE BANK, N.A., as Administrative Agent

            
	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Adam Klimek

            
	 
      	
              Name:

            	
              Adam
      Klimek

            
	 
      	
              Title:

            	
              Vice
      President

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              AGREED,
      ACKNOWLEDGED AND CONSENTED:

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              SHEFFIELD
      RECEIVABLES CORPORATION,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              Barclays
      Bank PLC as Attorney-in-Fact

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	
              By:

            	
              /s/ Jason D. Muncy

            	 
      
	 
      	 
      	
              Name:

            	
              Jason
      D. Muncy

            	 
      
	 
      	 
      	
              Title:

            	
              Associate
      Director

            	 
      
	 
      	 
      	 
      	 
      	 
      
	 
      	 
      	 
      	 
      	 
      
	
              BARCLAYS
      BANK PLC,

            	 
      
	 
      	
              as
      a Funding Agent and an APA Bank under the Series 2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              By:
      

            	
              /s/ Jeffrey Goldberg

            	 
      
	 
      	
              Name:

            	
              Jeffrey
      Goldberg

            	 
      
	 
      	
              Title:

            	
              Director

            	 
      
	 
      	 
      	 
      	 
      	 
      
	
              By:
      

            	
              /s/ Jason D. Muncy

            	 
      
	 
      	
              Name:

            	
              Jason
      D. Muncy

            	 
      
	 
      	
              Title:

            	
              Associate
      Director

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              LIBERTY
      STREET FUNDING LLC,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series  2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Jill A. Russo

            	 
      
	 
      	
              Name:

            	
              Jill
      A. Russo

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              THE
      BANK OF NOVA SCOTIA,

            	 
      
	 
      	
              as
      a Funding Agent and an APA Bank under the Series 2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Michael Eden

            	 
      
	 
      	
              Name:

            	
              Michael
      Eden

            	 
      
	 
      	
              Title:

            	
              Director

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              YC
      SUSI TRUST,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              Bank
      of America, National Association,

            	 
      
	 
      	
              as
      Administrative Trustee

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Willem Van Beek

            	 
      
	 
      	
              Name:

            	
              Willem
      Van Beek

            	 
      
	 
      	
              Title:

            	
              Principal

            	 
      
	 
      	 
      	 
      	 
      
	
              BANK
      OF AMERICA, NATIONAL ASSOCIATION,

            	 
      
	 
      	
              as
      a Funding Agent and an APA Bank under the Series 2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Willem Van Beek

            	 
      
	 
      	
              Name:

            	
              Willem
      Van Beek

            	 
      
	 
      	
              Title:

            	
              Principal

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              CHARTA,
      LLC (as successor to Charta Corporation),

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              Citibank,
      N.A., as

            	 
      
	 
      	
              Attorney-in-fact

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Karrie L. Truglia

            	 
      
	 
      	
              Name:

            	
              Karrie
      L. Truglia

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              CITIBANK,
      N.A., as

            	 
      	 
      
	 
      	
              an
      APA Bank under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Karrie L. Truglia

            	 
      
	 
      	
              Name:

            	
              Karrie
      L. Truglia

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              CITICORP
      NORTH AMERICA, INC.,

            	 
      
	 
      	
              as
      a Funding Agent under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Karrie L. Truglia

            	 
      
	 
      	
              Name:

            	
              Karrie
      L. Truglia

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              FALCON
      ASSET SECURITIZATION COMPANY LLC,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Adam Klimek

            	
               

            
	 
      	
              Name:

            	
              Adam
      Klimek

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              JPMORGAN
      CHASE BANK, N.A.

            	 
      
	 
      	
              as
      a Funding Agent under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Adam Klimek

            	 
      
	 
      	
              Name:

            	
              Adam
      Klimek

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              JPMORGAN
      CHASE BANK, N.A.

            	 
      
	 
      	
              as
      an APA Bank under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Adam Klimek

            	
               

            
	 
      	
              Name:

            	
              Adam
      Klimek

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              MONTAGE
      FUNDING LLC,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Phillip A. Martone

            	 
      
	 
      	
              Name:

            	
              Philip
      A. Martone

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              DEUTSCHE
      BANK AG, NEW YORK BRANCH,

            	 
      
	 
      	
              as
      a Funding Agent and an APA Bank under the Series 2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Robert Sheldon

            	 
      
	 
      	
              Name:

            	
              Robert
      Sheldon

            	 
      
	 
      	
              Title:

            	
              Director

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Daniel Gerber

            	 
      
	 
      	
              Name:

            	
              Daniel
      Gerber

            	 
      
	 
      	
              Title:

            	
              Director

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              ATLANTIC
      ASSET SECURITIZATION LLC,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Kostantina Kourmpetis

            	 
      
	 
      	
              Name:

            	
              Kostantina
      Kourmpetis

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Sam Pilcer

            	 
      
	 
      	
              Name:

            	
              Sam
      Pilcer

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      
	 
      	 
      	 
      	 
      
	
              CALYON
      NEW YORK BRANCH,

            	 
      
	 
      	
              as
      a Funding Agent and an APA Bank under the Series 2008-1
      Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Kostantina Kourmpetis

            	 
      
	 
      	
              Name:

            	
              Kostantina
      Kourmpetis

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Sam Pilcer

            	 
      
	 
      	
              Name:

            	
              Sam
      Pilcer

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              AMSTERDAM
      FUNDING CORPORATION,

            	 
      
	 
      	
              as
      a CP Conduit Purchaser under the Series 2008-1 Supplement

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Jill A. Russo

            	 
      
	 
      	
              Name:

            	
              Jill
      A. Russo

            	 
      
	 
      	
              Title:

            	
              Vice
      President

            	 
      
	 
      	 
      	 
      	 
      
	
              THE
      ROYAL BANK OF SCOTLAND PLC,

            	 
      
	 
      	
              as
      an APA Bank under the Series 2008-1 Supplement

            	 
      
	 
      	
              by:

            	
              RBS
      Securities Inc., as agent

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ David Viney

            	 
      
	 
      	
              Name:

            	
              David
      Viney

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      
	 
      	 
      	 
      	 
      
	
              THE
      ROYAL BANK OF SCOTLAND PLC,

            	 
      
	 
      	
              as
      a Funding Agent under the Series 2008-1 Supplement

            	 
      
	 
      	
              by:

            	
              RBS
      Securities Inc., as agent

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ David Viney

            	 
      
	 
      	
              Name:

            	
              David
      Viney

            	 
      
	 
      	
              Title:

            	
              Managing
      Director

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
      	
              AVIS
      BUDGET CAR RENTAL, LLC,

            	 
      
	 
      	 
      	 
      	 
      
	 
      	
              as
      Administrator

            	 
      
	 
      	 
      	 
      	 
      
	
              By:

            	
              /s/ Rochelle Tarlowe

            	 
      
	 
      	
              Name:

            	
              Rochelle
      Tarlowe

            	 
      
	 
      	
              Title:

            	
              Vice
      President and Treasurer

            	 
      

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    
    

    
      	SCHEDULE I TO AMENDED
      AND RESTATED SERIES 2008-1 SUPPLEMENT
	 
      	
              CP Conduit

            	
              APA Bank

            	
              Funding Agent

            	
              APA
      Bank Percentage

            	
              Maximum

              Purchaser
      Group

              Invested Amount

            	
              Match
      Funding

            	
              Purchased

              Percentage

            
	
              1.

            	
              Amsterdam
      Funding Corporation

            	
              The
      Royal Bank of Scotland plc

            	
              The
      Royal Bank of Scotland plc

            	
              100%

            	
              $275,000,000

            	
              Yes

            	
              14.10%

            
	
              2.

            	
              Montage
      Funding LLC

            	
              Deutsche
      Bank AG, New York Branch

            	
              Deutsche
      Bank AG, New York Branch

            	
              100%

            	
              $227,600,000

            	
              No

            	
              11.67%

            
	
              3.

            	
              Liberty
      Street Funding LLC

            	
              The
      Bank of Nova Scotia

            	
              The
      Bank of Nova Scotia

            	
              100%

            	
              $160,000,000

            	
              No

            	
              8.21%

            
	
              4.

            	
              YC
      SUSI Trust

            	
              Bank
      of America, National Association

            	
              Bank
      of America, National Association

            	
              100%

            	
              $176,700,000

            	
              No

            	
              9.06%

            
	
              5.

            	
              Falcon
      Asset Securitization Company LLC

            	
              JPMorgan
      Chase Bank, N.A.

            	
              JPMorgan
      Chase Bank, N.A.

            	
              100%

            	
              $365,000,000

            	
              No

            	
              18.72%

            
	
              6.

            	
              Atlantic
      Asset Securitization LLC

            	
              Calyon
      New York Branch

            	
              Calyon
      New York Branch

            	
              100%

            	
              $231,700,000

            	
              No

            	
              11.88%

            
	
              7.

            	
              Sheffield
      Receivables Corporation

            	
              Barclays
      Bank PLC

            	
              Barclays
      Bank PLC

            	
              100%

            	
              $289,000,000

            	
              Yes

            	
              14.82%

            
	
              8.

            	
              Charta,
      LLC

            	
              Citibank,
      N.A.

            	
              Citicorp
      North America, Inc.

            	
              100%

            	
              $225,000,000

            	
              No

            	
              11.54%

            

    

    

    
      
        
           

        

        
          1

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

    

    
      	 
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      I DEFINITIONS

            	
              2

            
	 	 
	
              ARTICLE
      II PURCHASE AND SALE OF SERIES 2008-1 NOTES;  INCREASES AND
      DECREASES OF SERIES 2008-1 INVESTED AMOUNT

            	
              32

            
	 	 
	 
      	
              Section
      2.1.

            	
              Purchases of the Series 2008-1
      Notes

            	
              32

            
	 
      	
              Section
      2.2.

            	
              Delivery

            	
              33

            
	 
      	
              Section
      2.3.

            	
              Procedure for Initial Issuance and for Increasing
      the Series 2008-1 Invested Amount

            	
              33

            
	 
      	
              Section
      2.4.

            	
              Sales by CP Conduit Purchasers of Series 2008-1
      Notes to APA Banks.

            	
              35

            
	 
      	
              Section
      2.5.

            	
              Procedure for Decreasing the Series 2008-1
      Invested Amount; Optional Termination

            	
              35

            
	 
      	
              Section
      2.6.

            	
              Increases and Reductions of the Commitments;
      Extensions of the Commitments

            	
              36

            
	 
      	
              Section
      2.7.

            	
              Interest; Fees

            	
              39

            
	 
      	
              Section
      2.8.

            	
              Indemnification by ABRCF

            	
              41

            
	 
      	
              Section
      2.9.

            	
              Funding Agents

            	
              41

            
	 	 	 	 
	
              ARTICLE
      III SERIES 2008-1 ALLOCATIONS

            	
              42

            
	 	 
	 
      	
              Section
      3.1.

            	
              Establishment of Series 2008-1 Collection Account,
      Series 2008-1 Excess Collection Account and Series 2008-1 Accrued Interest
      Account

            	
              42

            
	 
      	
              Section
      3.2.

            	
              Allocations with Respect to the Series 2008-1
      Notes

            	
              42

            
	 
      	
              Section
      3.3.

            	
              Payments to Noteholders

            	
              46

            
	 
      	
              Section
      3.4.

            	
              Payment of Note Interest and Commitment
      Fees

            	
              49

            
	 
      	
              Section
      3.5.

            	
              Payment of Note Principal

            	
              50

            
	 
      	
              Section
      3.6.

            	
              Administrator’s Failure to Instruct the Trustee to
      Make a Deposit or Payment

            	
              54

            
	 
      	
              Section
      3.7.

            	
              Series 2008-1 Reserve
    Account

            	
              54

            
	 
      	
              Section
      3.8.

            	
              Series 2008-1 Letters of Credit and Series 2008-1
      Cash Collateral Account

            	
              57

            
	 
      	
              Section
      3.9.

            	
              Series 2008-1 Distribution
      Account

            	
              61

            
	 
      	
              Section
      3.10.

            	
              Series 2008-1 Demand Notes Constitute Additional
      Collateral for Series 2008-1 Notes

            	
              62

            
	 
      	
              Section
      3.11.

            	
              Series 2008-1 Interest Rate
      Caps

            	
              63

            
	 
      	
              Section
      3.12.

            	
              Payments to Funding Agents or Purchaser
      Groups

            	
              64

            

    

    

    
      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

    (continued)

    

    
      	 
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      	 
      
	
              ARTICLE
      IV AMORTIZATION EVENTS

            	
              64

            
	 	 
	
              ARTICLE
      V RIGHT TO WAIVE PURCHASE RESTRICTIONS

            	
              66

            
	 	 
	
              ARTICLE
      VI CONDITIONS PRECEDENT

            	
              68

            
	 	 
	 
      	
              Section
      6.1.

            	
              Conditions Precedent to Effectiveness of Original
      Series 2008-1 Supplement

            	
              68

            
	 
      	
              Section
      6.2.

            	
              Conditions Precedent to Effectiveness of
      Supplement

            	
              71

            
	 	 	 	 
	
              ARTICLE
      VII CHANGE IN CIRCUMSTANCES

            	
              73

            
	 	 
	 
      	
              Section
      7.1.

            	
              Increased Costs

            	
              73

            
	 
      	
              Section
      7.2.

            	
              Taxes

            	
              74

            
	 
      	
              Section
      7.3.

            	
              Break Funding Payments

            	
              77

            
	 
      	
              Section
      7.4.

            	
              Alternate Rate of Interest

            	
              78

            
	 
      	
              Section
      7.5.

            	
              Mitigation Obligations

            	
              78

            
	 	 	 	 
	ARTICLE
      VIII REPRESENTATIONS AND WARRANTIES, COVENANTS	
              78

            
	 	 
	 
      	
              Section
      8.1.

            	
              Representations and Warranties of ABRCF and the
      Administrator

            	
              78

            
	 
      	
              Section
      8.2.

            	
              Covenants of ABRCF and the
      Administrator

            	
              79

            
	 	 	 	 
	
              ARTICLE
      IX THE ADMINISTRATIVE AGENT

            	
              80

            
	 	 
	 
      	
              Section
      9.1.

            	
              Appointment

            	
              80

            
	 
      	
              Section
      9.2.

            	
              Delegation of Duties

            	
              81

            
	 
      	
              Section
      9.3.

            	
              Exculpatory Provisions

            	
              81

            
	 
      	
              Section
      9.4.

            	
              Reliance by Administrative
      Agent

            	
              81

            
	 
      	
              Section
      9.5.

            	
              Notice of Administrator Default or Amortization
      Event or Potential Amortization Event

            	
              82

            
	 
      	
              Section
      9.6.

            	
              Non-Reliance on the Administrative Agent and Other
      Purchaser Groups

            	
              82

            
	 
      	
              Section
      9.7.

            	
              Indemnification

            	
              83

            
	 
      	
              Section
      9.8.

            	
              The Administrative Agent in Its Individual
      Capacity

            	
              83

            
	 
      	
              Section
      9.9.

            	
              Resignation of Administrative Agent; Successor
      Administrative Agent

            	
              83

            
	 	 	 	 
	
              ARTICLE
      X THE FUNDING AGENTS

            	
              84

            
	 	 
	 
      	
              Section
      10.1.

            	
              Appointment

            	
              84

            
	 
      	
              Section
      10.2.

            	
              Delegation of Duties

            	
              84

            
	 
      	
              Section
      10.3.

            	
              Exculpatory Provisions

            	
              84

            
	 
      	
              Section
      10.4.

            	
              Reliance by Each Funding
    Agent

            	
              85

            
	 
      	
              Section
      10.5.

            	
              Notice of Administrator Default or Amortization
      Event or Potential Amortization Event

            	
              85

            

    

    

    
      
        
           

        

        
          ii

          
            

          

        

        
           

        

      

    

    

    TABLE
OF CONTENTS

    (continued)

    

    
      	 
      	 
      	 
      	
              Page

            
	 
      	 
      	 
      	 
      
	 
      	
              Section
      10.6.

            	
              Non-Reliance on Each Funding Agent and Other
      Purchaser Groups

            	
              86

            
	 
      	
              Section
      10.7.

            	
              Indemnification

            	
              86

            
	 	 	 	 
	
              ARTICLE
      XI GENERAL

            	
              87

            
	 	 
	 
      	
              Section
      11.1.

            	
              Successors and Assigns

            	
              87

            
	 
      	
              Section
      11.2.

            	
              Securities Law

            	
              89

            
	 
      	
              Section
      11.3.

            	
              Adjustments; Set-off

            	
              89

            
	 
      	
              Section
      11.4.

            	
              No Bankruptcy Petition

            	
              90

            
	 
      	
              Section
      11.5.

            	
              Limited Recourse

            	
              90

            
	 
      	
              Section
      11.6.

            	
              Costs and Expenses

            	
              91

            
	 
      	
              Section
      11.7.

            	
              Exhibits

            	
              91

            
	 
      	
              Section
      11.8.

            	
              Ratification of Base
    Indenture

            	
              92

            
	 
      	
              Section
      11.9.

            	
              Counterparts

            	
              92

            
	 
      	
              Section
      11.10.

            	
              Governing Law

            	
              92

            
	 
      	
              Section
      11.11.

            	
              Amendments

            	
              92

            
	 
      	
              Section
      11.12.

            	
              Discharge of Indenture

            	
              92

            
	 
      	
              Section
      11.13.

            	
              Capitalization of ABRCF

            	
              92

            
	 
      	
              Section
      11.14.

            	
              Series 2008-1 Demand Notes

            	
              92

            
	 
      	
              Section
      11.15.

            	
              Termination of Supplement

            	
              93

            
	 
      	
              Section
      11.16.

            	
              Collateral Representations and Warranties of
      ABRCF

            	
              93

            
	 
      	
              Section
      11.17.

            	
              No Waiver; Cumulative
    Remedies

            	
              94

            
	 
      	
              Section
      11.18.

            	
              Waiver of Setoff

            	
              94

            
	 
      	
              Section
      11.19.

            	
              Notices

            	
              94

            
	 
      	
              Section
      11.20.

            	
              Confidential Information

            	
              95

            
	 
      	
              Section
      11.21.

            	
              Information.

            	
              96

            
	 
      	
              Section
      11.22.

            	
              Waiver of Jury Trial, etc.

            	
              96

            
	 
      	
              Section
      11.23.

            	
              Submission To Jurisdiction

            	
              96

            

    

     

     

    iiiSECURITIES
PURCHASE AGREEMENT

      

      dated as
of October 29, 2009

      

      between

      

      Cascade
Bancorp

      

      and

      

      David
F. Bolger

      

      
        

        

      

      
        
           

        

        
           

          
            

          

        

        
           

        

      

      TABLE
OF CONTENTS

       

      
        
          
            
              
                
                  	 
      	 
      	
                          Page

                        
	 
      	 
      
	
                          Article
      I

                        	
                          2
      

                        
	 
      	 
      
	
                          Purchase;
      Closings

                        	
                          2

                        
	 
      	 
      	 
      
	
                          1.1

                        	
                          Purchase

                        	
                          2
      

                        
	
                          1.2

                        	
                          Closing

                        	
                          2

                        
	 
      	 
	
                          Article
      II

                        	
                          6
      

                        
	 
      	
                          6

                        
	
                          Representations
      and Warranties

                        	 
      
	 
      	 
      	
                          6

                        
	
                          2.1

                        	
                          Disclosure

                        	
                          6

                        
	
                          2.2

                        	
                          Representations
      and Warranties of the Company

                        	
                          7

                        
	
                          2.3

                        	
                          Representations
      and Warranties of the Investor

                        	
                          25

                        
	 
      	 
      
	
                          Article
      III

                        	
                          25

                        
	 
      	 
	
                          Covenants

                        	
                          25

                        
	 
      	 
      	 
      
	
                          3.1

                        	
                          Filings;
      Other Actions

                        	
                          25

                        
	
                          3.2

                        	
                          Expenses

                        	
                          28

                        
	
                          3.3

                        	
                          Access,
      Information and Confidentiality

                        	
                          28

                        
	
                          3.4

                        	
                          Transfer

                        	
                          29

                        
	
                          3.5

                        	
                          Reasonable
      Efforts

                        	
                          29

                        
	
                          3.6

                        	
                          Conduct
      of the Business

                        	
                          29

                        
	
                          3.7

                        	
                          Company
      Forbearances

                        	
                          30

                        
	
                          3.8

                        	
                          Shareholder
      Litigation

                        	
                          31
      

                        
	 
      	 
      
	
                          Article
      IV

                        	
                          32

                        
	 
      	 
      
	
                          Additional
      Agreements

                        	
                          32

                        
	 
      	 
      	 
      
	
                          4.1

                        	
                          No
      Rights Agreement

                        	 
      
	
                          4.2

                        	
                          Governance
      Matters

                        	
                          32
      

                        
	
                          4.3

                        	
                          Legend

                        	
                          32

                        
	
                          4.4

                        	
                          [Reserved]

                        	
                          34

                        
	
                          4.5

                        	
                          Certain
      Transactions

                        	
                          34

                        
	
                          4.6

                        	
                          Indemnity

                        	
                          34

                        
	
                          4.7

                        	
                          Registration
      Rights

                        	
                          36

                        
	
                          4.8

                        	
                          Termination
      of Certain Sections of the Shareholders Agreement

                        	
                          46

                        
	
                          4.9

                        	
                          Market
      Stand-off Provision

                        	
                          47

                        
	
                          4.10

                        	
                          Gross-Up
      Rights

                        	
                          48

                        

                

              

            

          

        

      

      
        
           

        

        
          -i-

          
            

          

        

        
           

        

      

      

      
        
          
            
              	
                      4.11

                    	
                      Anti-Takeover
      Matters

                    	
                      50

                    
	
                      4.12

                    	
                      Additional
      Regulatory Matters

                    	
                      51

                    
	 
      	 
      
	
                      Article
      V

                    	
                      52

                    
	 
      	 
      
	
                      Termination

                    	
                      52

                    
	 
      	 
      	 
      
	
                      5.1

                    	
                      Termination

                    	
                      52

                    
	
                      5.2

                    	
                      Effects
      of Termination

                    	
                      53
      

                    
	 
      	
                       
      

                    
	
                      Article
      VI

                    	
                      53
      

                    
	 
      	 
      
	
                      Miscellaneous

                    	
                      53

                    
	 
      	 
      	 
      
	
                      6.1

                    	
                      Survival

                    	
                      53
      

                    
	
                      6.2

                    	
                      Amendment

                    	
                      53

                    
	
                      6.3

                    	
                      Waivers

                    	
                      53

                    
	
                      6.4

                    	
                      Counterparts
      and Facsimile

                    	
                      53

                    
	
                      6.5

                    	
                      Governing
      Law

                    	
                      53

                    
	
                      6.6

                    	
                      Waiver
      of Jury Trial

                    	
                      54
      

                    
	
                      6.7

                    	
                      Notices

                    	
                      54

                    
	
                      6.8

                    	
                      Entire
      Agreement; Assignment

                    	
                      55
      

                    
	
                      6.9

                    	
                      Other
      Definitions

                    	
                      55

                    
	
                      6.10

                    	
                      Captions

                    	
                      56

                    
	
                      6.11

                    	
                      Severability

                    	
                      57

                    
	
                      6.12

                    	
                      No
      Third-Party Beneficiaries

                    	
                      57

                    
	
                      6.13

                    	
                      Time
      of Essence

                    	
                      57

                    
	
                      6.14

                    	
                      Public
      Announcements

                    	
                      57

                    
	
                      6.15

                    	
                      Specific
      Performance

                    	
                      57

                    
	
                      6.16

                    	
                      No
      Obligation

                    	
                      57

                    

            

          

        

      

      
        
           

        

        
          -ii-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  	
                          LIST
      OF EXHIBITS

                        	 
      
	 
      	 
      	 
      
	
                          Exhibit A:

                        	
                          Form
      of Opinion of Counsel

                        	 
      
	
                          Exhibit B:

                        	
                          Form
      of Disclosure Letter of Counsel

                        	 
      
	
                          Exhibit C:

                        	
                          Form
      of Officer’s Certificate from the Company

                        	 
      

                

              

            

          

        

      

      
        
           

        

        
          -iii-

          
            

          

        

        
           

        

      

      INDEX
OF DEFINED TERMS

       

      
        
          
            
              
                
                  
                    	
                            Term

                          	 
      	
                            Location
      of

                            Definition

                          
	
                            Additional
      Shares

                          	 
      	
                            1.2(b)

                          
	
                            Affiliate

                          	 
      	
                            6.9(2)

                          
	
                            Agreement

                          	 
      	
                            Preamble

                          
	
                            Articles
      of Incorporation

                          	 
      	
                            2.2(a)

                          
	
                            Beneficially
      Own/Beneficial Owner/Beneficial Ownership

                          	 
      	
                            6.9(9)

                          
	
                            Benefit
      Plan

                          	 
      	
                            2.2(p)(1)

                          
	
                            BHC
      Act

                          	 
      	
                            2.2(a)

                          
	
                            Board
      of Directors

                          	 
      	
                            1.2(c)(1)(xi)

                          
	
                            Bolger
      Transaction Document

                          	 
      	
                            Recitals

                          
	
                            Business
      Combination Exemption Resolution

                          	 
      	
                            4.11(b)

                          
	
                            business
      day

                          	 
      	
                            6.9(7)

                          
	
                            CLAT

                          	 
      	
                            Recitals

                          
	
                            Closing

                          	 
      	
                            1.2(a)

                          
	
                            Closing
      Date

                          	 
      	
                            1.2(a)

                          
	
                            Code

                          	 
      	
                            2.2(p)(2)

                          
	
                            Common
      Stock/Common Shares

                          	 
      	
                            Recitals

                          
	
                            Company

                          	 
      	
                            Preamble

                          
	
                            Company
      10-K

                          	 
      	
                            2.2(c)(1)

                          
	
                            Company
      Bank

                          	 
      	
                            4.2(a)

                          
	
                            Company
      Financial Statements

                          	 
      	
                            2.2(f)

                          
	
                            Company
      Preferred Stock

                          	 
      	
                            2.2(c)(1)

                          
	
                            Company
      Reports

                          	 
      	
                            2.2(g)(1)

                          
	
                            Company
      Restricted Stock

                          	 
      	
                            2.2(c)(1)

                          
	
                            Company
      SEC Filings

                          	 
      	
                            2.2(ee)

                          
	
                            Company
      Significant Agreement

                          	 
      	
                            2.2(k)

                          
	
                            Company
      Stock Option

                          	 
      	
                            2.2(c)(1)

                          
	
                            Company
      Stock Option Plans

                          	 
      	
                            2.2(c)(1)

                          
	
                            Company
      Subsidiary/Company Subsidiaries

                          	 
      	
                            2.2(b)

                          
	
                            control/controlled
      by/under common control with

                          	 
      	
                            6.9(2)

                          
	
                            Covered
      Persons

                          	 
      	
                            4.11(b)

                          
	
                            De
      Minimis Claim

                          	 
      	
                            4.6(e)

                          
	
                            Designated
      Directors

                          	 
      	
                            1.2(c)(1)(xi)

                          
	
                            Disclosure
      Schedule

                          	 
      	
                            2.1(a)

                          
	
                            ERISA

                          	 
      	
                            2.2(p)(1)

                          
	
                            ERISA
      Affiliate

                          	 
      	
                            2.2(p)(2)

                          
	
                            ERISA
      Plan

                          	 
      	
                            2.2(p)(3)

                          
	
                            Exchange
      Act

                          	 
      	
                            2.2(g)(1)

                          
	
                            FDIC

                          	 
      	
                            2.2(b)

                          
	
                            GAAP

                          	 
      	
                            2.2(f)

                          
	
                            Governmental
      Entity

                          	 
      	
                            1.2(c)(1)(i)

                          
	
                            GRAT

                          	 
      	
                            Recitals

                          

                  

                

              

            

          

        

      

      
        
           

        

        
          -iv-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    
                      	
                              Term

                            	 
      	
                              Location
      of

                              Definition

                            
	
                              herein/hereof/hereunder

                            	 
      	
                              6.9(5)

                            
	
                              Holder

                            	 
      	
                              4.7(k)(1)

                            
	
                              Holders’
      Counsel

                            	 
      	
                              4.7(k)(2)

                            
	
                              including/includes/included/include

                            	 
      	
                              6.9(4)

                            
	
                              Indemnified
      Party

                            	 
      	
                              4.6(c)

                            
	
                              Indemnifying
      Party

                            	 
      	
                              4.6(c)

                            
	
                              Indemnitee

                            	 
      	
                              4.7(g)(1)

                            
	
                              Information

                            	 
      	
                              3.3(b)

                            
	
                              Intellectual
      Property

                            	 
      	
                              2.2(w)

                            
	
                              Investor

                            	 
      	
                              Preamble

                            
	
                              Investor
      Nominee

                            	 
      	
                              4.2(a)

                            
	
                              IRS

                            	 
      	
                              2.2(i)

                            
	
                              IT
      Assets

                            	 
      	
                              2.2(w)

                            
	
                              knowledge
      of the Company/Company’s knowledge

                            	 
      	
                              6.9(10)

                            
	
                              Liens

                            	 
      	
                              2.2(b)

                            
	
                              Losses

                            	 
      	
                              4.6(a)

                            
	
                              Market
      Price

                            	 
      	
                              4.10(a)

                            
	
                              Material
      Adverse Effect

                            	 
      	
                              2.1(b)

                            
	
                              NASDAQ

                            	 
      	
                              1.2(c)(1)(xvi)

                            
	
                              New
      Security

                            	 
      	
                              4.10(a)

                            
	
                              OBCA

                            	 
      	
                              2.2(v)

                            
	
                              Order

                            	 
      	
                              1.2(c)(1)(xiv)

                            
	
                              Other
      Private Placements

                            	 
      	
                              Recitals

                            
	
                              Other
      Securities Purchase Agreements

                            	 
      	
                              Recitals

                            
	
                              Pending
      Underwritten Offering

                            	 
      	
                              4.7(l)

                            
	
                              Pension
      Plan

                            	 
      	
                              2.2(p)(3)

                            
	
                              Per
      Share Purchase Price

                            	 
      	
                              1.2(a)

                            
	
                              Permitted
      Liens

                            	 
      	
                              2.2(h)

                            
	
                              person

                            	 
      	
                              6.9(8)

                            
	
                              Piggyback
      Registration

                            	 
      	
                              4.7(a)(4)

                            
	
                              Pre-Closing
      Period

                            	 
      	
                              3.6

                            
	
                              Previously
      Disclosed

                            	 
      	
                              2.1(c)

                            
	
                              Public
      Offering

                            	 
      	
                              Recitals

                            
	
                              Public
      Offering Price

                            	 
      	
                              1.2(a)

                            
	
                              Purchase
      Price

                            	 
      	
                              1.2(a)

                            
	
                              Purchased
      Shares

                            	 
      	
                              1.2(a)

                            
	
                              Register/registered/registration

                            	 
      	
                              4.7(k)(3)

                            
	
                              Registered
      Intellectual Property

                            	 
      	
                              2.2(w)

                            
	
                              Registrable
      Securities

                            	 
      	
                              4.7(k)(4)

                            
	
                              Registration
      Deadline

                            	 
      	
                              4.7(a)(1)

                            
	
                              Registration
      Expenses

                            	 
      	
                              4.7(k)(5)

                            
	
                              Regulatory
      Agreement

                            	 
      	
                              2.2(y)

                            
	
                              Rule
      144

                            	 
      	
                              4.7(k)(6)

                            

                    

                  

                

              

            

          

        

      

      
        
           

        

        
          -v-

          
            

          

        

        
           

        

      

      

      
        
          
            
              
                
                  
                    	
                            Term

                          	 
      	
                            Location
      of

                            Definition

                          
	
                            Rule
      144A

                          	 
      	
                            4.7(k)(6)

                          
	
                            Rule
      405

                          	 
      	
                            4.7(k)(6)

                          
	
                            Rule
      158

                          	 
      	
                            4.7(k)(6)

                          
	
                            Rule
      159A

                          	 
      	
                            4.7(k)(6)

                          
	
                            Rule
      415

                          	 
      	
                            4.7(k)(6)

                          
	
                            Scheduled
      Black-out Period

                          	 
      	
                            4.7(k)(7)

                          
	
                            SEC

                          	 
      	
                            2.1(c)

                          
	
                            Securities

                          	 
      	
                            1.2(b)

                          
	
                            Securities
      Act

                          	 
      	
                            2.2(g)(1)

                          
	
                            Selling
      Expenses

                          	 
      	
                            4.7(k)(8)

                          
	
                            Shareholders
      Agreement

                          	 
      	
                            4.2(e)

                          
	
                            Shareholder
      Litigation

                          	 
      	
                            3.8

                          
	
                            Shelf
      Registration Statement

                          	 
      	
                            4.7(a)(2)

                          
	
                            Special
      Registration

                          	 
      	
                            4.7(a)(4)

                          
	
                            Stockholder
      Approvals

                          	 
      	
                            2.2(d)(1)

                          
	
                            subsidiary

                          	 
      	
                            6.9(1)

                          
	
                            Takeover
      Law

                          	 
      	
                            2.2(v)

                          
	
                            Tax/Taxes

                          	 
      	
                            2.2(i)

                          
	
                            Tax
      Return

                          	 
      	
                            2.2(i)

                          
	
                            Threshold
      Amount

                          	 
      	
                            4.6(e)

                          
	
                            Trade
      Secrets

                          	 
      	
                            2.2(w)

                          
	
                            Transaction
      Documents

                          	 
      	
                            Recitals

                          
	
                            Trust
      Preferred Securities Repurchase Agreements

                          	 
      	
                            1.2(c)(1)(xiii)

                          
	
                            Two-Forty

                          	 
      	
                            Recitals

                          
	
                            Unlawful
      Gains

                          	 
      	
                            2.2(n)(5)

                          
	
                            Voting
      Debt

                          	
                              

                          	
                            2.2(c)(1)

                          

                  

                

              

            

          

        

      

      
        
           

        

        
          -vi-

          
            

          

        

        
           

        

      

      SECURITIES PURCHASE AGREEMENT,
dated as of October 29, 2009 (this “Agreement”), between Cascade
Bancorp, an Oregon corporation, (the “Company”) and David F.
Bolger, in his individual capacity (the “Investor”).

       

      RECITALS:

       

      A.           The
Investment.  The Company intends to sell to the Investor, and
the Investor intends to purchase from the Company, as an investment in the
Company, the securities as described herein.  The securities to be
purchased at the closing are shares of common stock, no par value, of the
Company (“Common Stock”
or “Common
Shares”).

       

      B.           Additional
Parties.  Solely for the purposes of Sections 3.4, 4.7 and 4.8,
Two-Forty Associates, L.P., a Pennsylvania limited partnership (“Two-Forty”), The David F.
Bolger 2008 Grantor Retained Annuity Trust, a Florida trust (“GRAT”), and The David F.
Bolger 2008 Nongrantor Charitable Lead Annuity Trust, a Florida trust (“CLAT”), shall be deemed
parties to this Agreement.

       

      C.           Additional Private
Placements.  Concurrently with the investment contemplated
herein, the Company has agreed to sell Common Shares in private placements to
other investors (the “Other
Private Placements”) under separate securities purchase agreements (the
“Other Securities Purchase
Agreements”), with the closing of such transactions to occur
simultaneously with the closing of this transaction and the Public Offering as
described herein.

       

      D.           Public
Offering.  Concurrently with the investment contemplated
herein, the Company will sell Common Shares in an underwritten, registered
public offering (the “Public
Offering”), with the closing of such offering to occur simultaneously
with the closing of this transaction as described herein.

       

      E.           Transaction
Documents.  The term “Bolger Transaction Document”
refers to this Agreement, and the term “Transaction Documents” refers
to the Bolger Transaction Document and the Other Securities Purchase
Agreements.

       

      NOW, THEREFORE, in
consideration of the premises, and of the representations, warranties, covenants
and agreements set forth herein, the parties agree as follows:

      
        
           

        

        
           

          
            

          

        

        
           

        

      

       

      ARTICLE
I

       

      Purchase;
Closings

       

      1.1           Purchase.  On
the terms and subject to the conditions set forth herein, the Investor will
purchase from the Company, and the Company will sell to the Investor, a number
of shares of Common Stock as set forth herein.

       

      1.2           Closing.

       

      (a)           Subject
to the satisfaction of the conditions to the closing set forth in
Section 1.2(c), the closing shall take place simultaneously with the
closing of the Public Offering and the Other Private Placements or as shall be
agreed upon in writing by the parties hereto, at the offices of the Company
located at 1100 NW Wall Street, Bend, Oregon 97701 or such other location as
agreed by the parties in writing (the “Closing”).  The
date of the Closing is referred to as the “Closing
Date.”  Subject to the satisfaction of the conditions described
in Section 1.2(c), at the Closing, the Company will deliver to the Investor
one or more certificates representing such number of whole shares of Common
Stock (the “Purchased
Shares”) determined by dividing (i) $25,000,000 (the “Purchase Price”) by the
lesser of (A) $0.87 per share and (B) the net proceeds per share to the Company
in connection with the Public Offering (the “Public Offering Price”) (the
“Per Share Purchase
Price”), against payment by the Investor of $25,000,000 by wire transfer
of immediately available United States funds to a bank account designated by the
Company.

       

      (b)           In
the event that the underwriters in the Public Offering exercise their
over-allotment option to purchase additional shares of Common Stock pursuant to
the underwriting agreement for the Public Offering, then the Company shall
provide written notice to the Investor (which notice shall include the date of
the purchase and the number of shares of Common Stock purchased by the
underwriters) and the Investor shall have the option to purchase, at the Per
Share Purchase Price and on the same terms and conditions as the Purchased
Shares, additional shares of Common Stock (the “Additional Shares” and,
together with the Purchased Shares, the “Securities”) up to the number
of shares of Common Stock, which taken together with the Purchased Shares, would
equal the same percentage of the outstanding shares of Common Stock after the
issuance of the shares of Common Stock pursuant to the over-allotment option as
represented by the Purchased Shares issued pursuant to Section
1.2(a).

       

      (c)           Closing
Conditions.

       

      (1)           The
obligation of the Investor to consummate the Closing is subject to the
fulfillment prior to or contemporaneously with the Closing of each of the
following conditions:

      
        
           

        

        
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      (i)           no
provision of any applicable law or regulation and no judgment, injunction, order
or decree shall prohibit the Closing or shall prohibit or restrict Investor or
its Affiliates from owning, voting, or, subject to the receipt of the
Stockholder Approvals (defined below), converting or exercising, any securities
of the Company in accordance with the terms thereof and no lawsuit shall have
been commenced by any court, administrative agency or commission or other
governmental authority or instrumentality, whether federal, state, local or
foreign, or any applicable industry self-regulatory organization (each, a “Governmental Entity”) seeking
to effect any of the foregoing;

       

      (ii)           the
shareholders of Common Shares shall have duly approved the transactions
contemplated hereby, the transactions contemplated by the other Transaction
Documents (to the extent required), and an increase in the number of authorized
Common Shares to 300 million, in each case by the vote required by the Company’s
Articles of Incorporation or the NASDAQ’s listing rules, as applicable, and each
shall have become effective;

       

      (iii)           the
representations and warranties of the Company set forth in this Agreement shall
be true and correct in all respects as of the date hereof and as of the Closing
(except to the extent such representations and warranties are made as of a
specified date, in which case such representations and warranties shall be true
and correct in all respects as of such date);

       

      (iv)           since
the date hereof, there shall not have occurred any circumstance, event, change,
development or effect that, individually or in the aggregate, has had or could
reasonably be expected to have a Material Adverse Effect on the Company or its
principal depository institution subsidiary;

       

      (v)         
  the Company shall have performed all obligations required to be
performed by it at or prior to or contemporaneously with the Closing under this
Agreement;

       

      (vi)           the
Company shall receive proceeds (net of underwriting commissions and discounts)
from the sale of Common Shares of an aggregate amount not less than $150 million
(which includes the Purchase Price), contemporaneously with the Closing, from
the proceeds of the Public Offering, from the Other Private Placements and from
the Investor as contemplated by this Agreement, and all of such proceeds, other
than (A) amounts used to repurchase the trust preferred securities pursuant to
the Trust Preferred Securities Repurchase Agreements and to pay related fees and
expenses (which related fees and expenses shall not exceed $2.7 million); (B)
amounts used to reimburse the Investor and the investors in the Other Private
Placement for their respective fees and expenses pursuant to this Agreement and
the Other Securities Purchase Agreement (which amounts shall not exceed $2.65
million; (C) amounts to pay expenses related to the Public Offering, the Special
Shareholders Meeting and the transactions contemplated by this Agreement and the
Other Purchase Agreements (which amounts shall not exceed $1.5 million); and (D)
up to $1 million which will remain at the Company for working capital purposes,
shall be contributed as capital to the Company’s principal depository
institution subsidiary;

       

      (vii)           the
Company shall have issued new Common Stock certificates pursuant to Section
3.4(a);

      
        
           

        

        
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      (viii)          the
Company shall have reimbursed the Investor for out-of-pocket fees and expenses
incurred by the Investor in connection with the transaction contemplated hereby
and with any proposed financing thereof, including, but not limited to, fees and
disbursements of legal counsel, accounting and financial advisors, credit review
and investment banking advisors, up to $1,250,000 in the aggregate;

       

      (ix)         
   Davis Wright Tremaine LLP, counsel for the Company, shall have
delivered to the Investor their written opinion, dated the Closing Date, in the
form set forth in Exhibit A hereto, in
form and substance satisfactory to the Investor;

       

      (x)    
        Davis Wright Tremaine LLP, counsel
for the Company, shall have delivered to the Investor their written opinion and
disclosure letter delivered in connection with the Public Offering, dated the
Closing Date, in the form set forth in Exhibit B hereto, in
form and substance satisfactory to the Investor;

       

      (xi)     
      Delap LLP, in their capacity as the
Company’s independent public accountants, shall have delivered to the Investor
and to the Investor’s designated directors (the “Designated Directors”) on the
board of directors of the Company (the “Board of Directors”) a
comfort letter that is addressed to them that is the same as the comfort letter
delivered to the underwriters in connection with the Public Offering, in form
and substance satisfactory to the Investor;

       

      (xii)           the
Company shall have delivered to the Investor a duly executed Officer’s
Certificate in the form set forth in Exhibit C
hereto;

       

      (xiii)          by
November 16, 2009, the Company shall have entered into agreements that are not
subject to any conditions in the control of the holder or termination rights by
such holder to repurchase and cancel at least $66.5 million aggregate
liquidation amount of the outstanding trust preferred securities by issuer
trusts originated by the Company at a discount of not less than 80% of such
aggregate liquidation amount (the “Trust Preferred Securities
Repurchase Agreements”), and, as of the Closing, either (i) the
transactions contemplated by the Repurchase Agreements shall have been
consummated or (ii) the Trust Preferred Securities Repurchase Agreements shall
be in full force and effect and shall not have been modified or amended in any
material respect;

       

      (xiv)          the
Company and its Subsidiaries shall be in compliance in all material respects
with the policies and procedures adopted by them and disclosed to the Investor
in the Three Year Financial Plan dated October 13, 2009, and none of such
policies and procedures shall have been revoked or modified in any respect that
would make it materially less likely that the Company and its Subsidiaries will
be able to comply with a cease-and-desist order dated August 27, 2009 against
the Company Bank issued by the FDIC and the Oregon Division of Finance and
Corporate Securities (or any other enforcement orders in effect at the date
hereof) (the “Order”);

      
        
           

        

        
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      (xv)           as
of the close of business on the second business day immediately preceding the
Closing, the Company’s (A) classified assets on its balance sheet shall not be
more than 10% higher than the amount set forth as of September 30, 2009, (B)
non-performing assets on its balance sheet shall not be more than 17.5% higher
than the amount set forth as of September 30, 2009 and (C) the Company’s net
loss, exclusive of tax adjustments or tax expense, for the period October 1,
2009 to the second business day prior to the Closing Date, shall not exceed $25
million;

       

      (xvi)          the
Company shall have caused the shares of Common Stock issuable at Closing and the
shares of Common Stock to be issued in the Other Private Placements and the
Public Offering to be approved for listing on the National Association of
Securities Dealers Automated Quotation System (“NASDAQ”), subject to official
notice of issuance;

       

      (xvii)          the
Company and the Investor shall have obtained the approvals and authorizations
of, filings and registrations with, and notifications to, and, to the extent
required by applicable law or regulation, consents, approvals, or exemptions
from bank regulatory authorities, for the transactions contemplated by the
Transaction Documents;

       

      (xviii)        except
as Previously Disclosed (as defined below), no enforcement action shall have
been threatened or issued by any governmental agency with regulatory authority
over the Company and its subsidiaries.

       

      At
Closing, the Company shall deliver a certificate of the Chief Executive Officer
or the Chief Financial Officer certifying compliance with each of the above
conditions and upon the request of the Investor, shall provide sufficient detail
that the Investor may verify compliance.

       

      (2)           The
obligation of the Company to consummate the Closing is subject to the
fulfillment prior to the Closing of each of the following
conditions:

       

      (i)           the
representations and warranties of the Investor set forth in Section 2.3(a)
of this Agreement shall be true and correct in all respects as of the date
hereof and as of the Closing (except to the extent such representations and
warranties are made as of a specified date, in which case such representations
and warranties shall be true and correct in all respects as of such
date);

       

      (ii)           the
Company shall receive proceeds from the sale of Common Shares (net of
underwriting commissions and discounts) of an aggregate amount not less than
$150 million (which includes the Purchase Price), contemporaneously with the
Closing, from the proceeds of the Public Offering, from the Other Private
Placements and from the Investor as contemplated by this
Agreement;

      
        
           

        

        
          -5-

          
            

          

        

        
           

        

      

       

      (iii)           the
Company and the Investor shall have obtained the approvals and authorizations
of, filings and registrations with, and notifications to, and, to the extent
required by applicable law or regulation, consents, approvals, or exemptions
from bank regulatory authorities, for the transactions contemplated by the
Transaction Documents; and

       

      (iv)           the
Investor shall have performed all obligations required to be performed by it at
or prior to the Closing under this Agreement.

       

      ARTICLE
II

       

      Representations
and Warranties

       

      2.1           Disclosure.

       

      (a)           On
or prior to the date of this Agreement, the Company delivered to the Investor a
schedule (“Disclosure
Schedule”) setting forth, among other things, items the disclosure of
which is necessary or appropriate either in response to an express disclosure
requirement contained in a provision hereof or as an exception to one or more
representations or warranties contained in Section 2.2 or to one or more of its covenants contained in
Article III; provided,
however, that
notwithstanding anything in this Agreement to the contrary, the mere inclusion
of an item in such schedule shall not be deemed an admission that such item
represents a material exception or material fact, event, or circumstance or that
such item has had or would reasonably be expected to have a Material Adverse
Effect on the Company.

       

      (b)           “Material Adverse Effect”
means, with respect to the Investor, only clause (2) that follows, or, with
respect to the Company, both clauses (1) and (2) that follow, any
circumstance, event, change, development or effect that, individually or in the
aggregate (1) is or would reasonably be expected to be material and adverse
to the financial position, results of operations, business, management or
condition (financial or otherwise) of the Company and its subsidiaries taken as
a whole, or (2) would materially impair the ability of either the Investor
or the Company, respectively, to perform its respective obligations under this
Agreement or otherwise materially threaten or materially impede the consummation
of the transactions contemplated by this Agreement; provided, however, that in determining
whether a Material Adverse Effect has occurred, there shall be excluded any
effect to the extent resulting from the following: (A) changes, after the date
hereof, in generally accepted accounting principles or regulatory accounting
principles generally applicable to banks, savings associations or their holding
companies, (B) actions or omissions of the Company expressly required by the
terms of this Agreement or taken with the prior written consent of each
Investor, (C) changes, after the date hereof, in the market price or trading
volumes of the Common Stock or the Company’s other securities (but not the
underlying causes of such changes), (D) changes in global or national political
conditions, including the outbreak or escalation of war or acts of terrorism,
and (E) the public disclosure of this Agreement or the transactions contemplated
hereby; except, with respect to clauses (A), and (D), to the extent that the
effects of such changes have a disproportionate effect on the Company and the
Company Subsidiaries, taken as a whole, relative to other banks, savings
associations and their holding companies generally, and with respect to clause
(E), to the extent that such public disclosure results in additional
restrictions or sanctions against the Company or the Bank by a regulatory
authority.

      
        
           

        

        
          -6-

          
            

          

        

        
           

        

      

       

      (c)           “Previously Disclosed” with
regard to the Company means (1) information set forth on its Disclosure Schedule
corresponding to the provision of this Agreement to which such information
relates; provided that
information which is reasonably apparent on its face that it relates to another
provision of this Agreement, shall also be deemed to be Previously Disclosed
with respect to such other provision and (2) includes information publicly
disclosed by the Company in the Company Reports filed by it with or furnished to
the U.S. Securities and Exchange Commission (the “SEC”) or in the Registration
Statement on Form S-1 (Reg. No. 333-162377), including amendments thereto filed
prior to the date hereof, and publicly available prior to the date of this
Agreement (excluding any risk factor disclosures contained in such documents
under the heading “Risk Factors,” any disclosure of risks included in any
“forward-looking statements” or any other disclaimer that are non-specific and
predictive or forward-looking in nature and any exhibits thereto and documents
incorporated by reference therein).

       

      2.2           Representations and
Warranties of the Company.  Except
as Previously Disclosed, the Company represents and warrants as of the date of
this Agreement and as of the Closing (except to the extent made only as of a
specified date, in which case as of such date) to the Investor
that:

       

      (a)           Organization and
Authority.  The Company is a corporation duly organized and
validly existing under the laws of the State of Oregon, is duly qualified to do
business and is in good standing in all jurisdictions where its ownership or
leasing of property or the conduct of its business requires it to be so
qualified and failure to be so qualified would have a Material Adverse Effect on
the Company and has corporate power and authority to own its properties and
assets and to carry on its business as it is now being conducted.  The
Company is duly registered as a bank holding company under the Bank Holding
Company Act of 1956, as amended, or any successor statute (the “BHC Act”).  The
Company has furnished or made available to the Investor, prior to the date
hereof, true, correct and complete copies of the Company’s Articles of
Incorporation, as amended on April 21, 1997 (the “Articles of Incorporation”)
and bylaws as amended through the date of this Agreement.

      (b)           Company’s
Subsidiaries.  The Company has Previously Disclosed a true,
complete and correct list of all of its subsidiaries as of the date of this
Agreement (individually, a “Company Subsidiary” and,
collectively, the “Company
Subsidiaries”), all shares of the outstanding capital stock of each of
which are owned directly or indirectly by the Company.  No equity
security of any Company Subsidiary is or may be required to be issued by reason
of any option, warrant, scrip, preemptive right, right to subscribe to, gross-up
right, call or commitment of any character whatsoever relating to, or security
or right convertible into, shares of any capital stock of such Company
Subsidiary, and there are no contracts, commitments, understandings or
arrangements by which any Company Subsidiary is bound to issue additional shares
of its capital stock, or any option, warrant or right to purchase or acquire any
additional shares of its capital stock.  All of such shares so owned
by the Company are duly authorized and validly issued, fully paid and
nonassessable and are owned by it free and clear of any lien, adverse right or
claim, charge, option, pledge, covenant, title defect, security interest or
other encumbrances of any kind (“Liens”) with respect
thereto.  Each Company Subsidiary is an entity duly organized, validly
existing, duly qualified to do business and in good standing under the laws of
its jurisdiction of organization, and has corporate or other appropriate
organizational power and authority to own or lease its properties and assets and
to carry on its business as it is now being conducted, except as would not
reasonably be expected to have a Material Adverse Effect on the
Company.  Except in respect of the Company Subsidiaries, the Company
does not own beneficially, directly or indirectly, more than 5% of any class of
equity securities or similar interests of any corporation, bank, business trust,
association or similar organization, and is not, directly or indirectly, a
partner in any partnership or party to any joint venture.  The
Company’s principal depository institution subsidiary is duly organized and
validly existing as an Oregon state-chartered commercial bank and its deposit
accounts are insured by the Federal Deposit Insurance Corporation (the “FDIC”) to the fullest extent
permitted by the Federal Deposit Insurance Act and the rules and regulations of
the FDIC thereunder, and all premiums and assessments required to be paid in
connection therewith have been paid when due.  The Company has
furnished or made available to the Investor, prior to the date hereof, true,
correct and complete copies of the charter and bylaws of the Company’s principal
depository institution subsidiary as amended through the date of this
Agreement.

       

      
        
          
          

        

        
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      (c)           Capitalization.

      (1)           As
of the date hereof, the authorized capital stock of the Company consists of
45,000,000 shares of Common Stock and 5,000,000 shares of preferred stock, no
par value (the “Company
Preferred Stock”).  As of the date hereof, there are 28,151,480
shares of Common Stock outstanding and no shares of Company Preferred Stock
outstanding.  From the date of this Agreement through the Closing
Date, except in connection with the Transaction Documents, the Other Private
Placements, the Public Offering and the transactions contemplated hereby
(including any repurchase of Trust Preferred Securities) and thereby, the
Company shall not have (i) issued or authorized the issuance of any shares
of Common Stock or Company Preferred Stock, or any securities convertible into
or exchangeable or exercisable for shares of Common Stock or Company Preferred
Stock (other than shares issued upon the exercise of Company Stock Options),
(ii) reserved for issuance any shares of Common Stock or Company Preferred
Stock or (iii) repurchased or redeemed, or authorized the repurchase or
redemption of, any shares of Common Stock or Company Preferred
Stock.  As of the date hereof, there are (i) outstanding stock
options issued under the Company’s 1994 Incentive Stock Option Plan, as amended
or supplemented as filed as exhibits 10.1 and 10.2 to the Company’s Annual
Report on Form 10-K for the year ended December 31, 2008 (the “Company 10-K”), Deferred
Compensation Plans as filed as exhibit 10.3 to the Company 10-K, 2002 Equity
Incentive Plan, as filed as exhibit 10.4 to the Company 10-K (together, the
“Company Stock Option
Plans”) to purchase an aggregate of 1,004,914 shares of the Common Stock
(each, a “Company Stock
Option”), (ii) an aggregate of 143,545 shares of restricted stock
(“Company Restricted
Stock”) outstanding under the Company Stock Option Plans and (iii)
1,338,921 shares of the Common Stock reserved for issuance under the Company
Stock Option Plans.  Other than in respect of awards outstanding under
or pursuant to the Company Stock Option Plans, no shares of Common Stock or
Company Preferred Stock are reserved for issuance.  All of the issued
and outstanding shares of Common Stock have been duly authorized and validly
issued and are fully paid, nonassessable and free of preemptive rights, with no
personal liability attaching to the ownership thereof.  Each Company
Stock Option (i) was granted in compliance with all applicable laws and all of
the terms and conditions of the Company Stock Option Plans pursuant to which it
was issued, (ii) has an exercise price per share of Common Stock equal to or
greater than the fair market value of a share of Common Stock on the date of
such grant and (iii) has a grant date identical to the date on which the Board
of Directors or compensation committee of the Board of Directors actually
awarded such Company Stock Option.  Neither the Company nor any of its
officers, directors, or employees is a party to any right of first refusal,
right of first offer, proxy, voting agreement, voting trust, registration rights
agreement, or shareholders agreement with respect to the sale or voting of any
securities of the Company.  No bonds, debentures, notes or other
indebtedness having the right to vote on any matters on which the stockholders
of the Company may vote (“Voting Debt”) are issued and
outstanding.  Except as set forth elsewhere in this
Section 2.2(c), the Company does not have and is not bound by any
outstanding subscriptions, options, warrants, calls, repurchase rights,
commitments, or agreements of any character calling for the purchase or issuance
of, or securities or rights convertible into or exchangeable or exercisable for,
any shares of Common Stock or Company Preferred Stock or any other equity
securities of the Company or Voting Debt or any securities representing the
right to purchase or otherwise receive any shares of capital stock of the
Company (including any rights plan or agreement).  The Company has
Previously Disclosed all shares of Company capital stock that have been
purchased, redeemed or otherwise acquired, directly or indirectly, by the
Company or any Company Subsidiary since December 31, 2008 and all dividends or
other distributions that have been declared, set aside, made or paid to the
stockholders of the Company since that date.

       

      
        
          
          

        

        
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      (2)           Section 2.2(c)(2)
of the Company’s Disclosure Schedule sets forth the following information with
respect to each Company Stock Option and share of Company Restricted Stock,
which is true and correct as of the date of this Agreement: (i) the name of each
holder of Company Stock Options and Company Restricted Stock and (ii) the number
of shares of Common Stock subject to such Company Stock Option and the number of
shares of Company Restricted Stock, and, as applicable, the grant date, exercise
price, number of shares vested or not otherwise subject to restrictions, vesting
schedule and the Company Stock Option Plan under which such Company Stock
Options or shares of Company Restricted Stock were granted.

       

      
        
          
          

        

        
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      (d)           Authorization.

       

      (1)           The
Company has the corporate power and authority to enter into or issue this
Agreement and the other Transaction Documents and, subject to obtaining the
Stockholder Approvals (defined below) to carry out its obligations hereunder and
thereunder.  The execution, delivery and performance of this Agreement
and the other Transaction Documents by the Company and the consummation of the
transactions contemplated hereby and thereby, including the issuance of Common
Stock in accordance with the terms of this Agreement and the increase in the
authorized shares of the Company, have been duly authorized by the affirmative
vote of at least a majority of the directors on the Board of
Directors.  This Agreement and the other Transaction Documents have
been duly and validly executed and delivered by the Company and, assuming due
authorization, execution and delivery of this Agreement by the Investor, are
valid and binding obligations of the Company enforceable against the Company in
accordance with their respective terms, except as such enforceability may be
limited by the failure to obtain the Stockholder Approvals, by bankruptcy,
insolvency, moratorium, reorganizations, fraudulent transfer or similar laws
relating to or affecting creditors generally or by general equitable principles
(whether applied in equity or at law).  No other corporate proceedings
are necessary for the execution and delivery by the Company of this Agreement
and the other Transaction Documents, the performance by the Company of its
obligations hereunder and thereunder or the consummation by the Company of the
transactions contemplated hereby and thereby, subject to receipt of the
Stockholder Approvals.  The only vote of the stockholders of the
Company required to approve (i) the amendment of the Articles of Incorporation
to increase the number of authorized shares of Common Stock to at least such
number as shall be sufficient to permit the issuance of Common Stock
contemplated in this Agreement, the issuance of Common Stock in connection with
the Other Private Placements and the issuance of Common Stock in connection with
the Public Offering is that more votes are cast for such proposal than against
the proposal and (ii) the issuance of such authorized shares of Common Stock for
purposes of rule 5635 of NASDAQ’s listing rules is a majority of the votes cast
on such proposal (such stockholder approval to amend the Articles of
Incorporation and to issue the Common Stock, the “Stockholder
Approvals”).  The Board of Directors has resolved that the
transactions contemplated hereby, by the Other Private Placements and by the
Public Offering are in the best interests of stockholders of the Company and has
determined unanimously to recommend to the stockholders the approval of the
actions with respect to the Stockholder Approvals.

       

      (2)           Neither
the execution, delivery and performance by the Company of this Agreement, the
Common Stock and the Other Transaction Documents, nor the consummation of the
transactions contemplated hereby and thereby, nor the consummation of the
transactions contemplated by any of the Other Private Placements or the Public
Offering, nor compliance by the Company with any of the provisions of any of the
foregoing, will (i) violate, conflict with, or result in a breach of any
provision of, or constitute a default (or an event which, with notice or lapse
of time or both, would constitute a default) under, or result in the termination
of, or accelerate the performance required by, or result in a right of
termination or acceleration of, or result in the creation of, any Lien, upon any
of the properties or assets of the Company or any Company Subsidiary under any
of the terms, conditions or provisions of (A) subject to the receipt of the
Stockholder Approvals, its Articles of Incorporation or bylaws (or similar
governing documents) or (B) any note, bond, mortgage, indenture, deed of
trust, license, lease, agreement or other instrument or obligation to which the
Company or any Company Subsidiary is a party or by which it may be bound, or to
which the Company or any Company Subsidiary or any of the properties or assets
of the Company or any Company Subsidiary may be subject, or (ii) subject to
compliance with the statutes and regulations referred to in the next paragraph,
violate any ordinance, permit, concession, grant, franchise, law, statute, rule
or regulation or any judgment, ruling, order, writ, injunction or decree
applicable to the Company or any Company Subsidiary or any of their respective
properties, except in the case of clauses (i)(B) and (ii) for such violations,
conflicts and breaches that are not material.

      
        
           

        

        
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      (3)           Other
than the securities or blue sky laws of the various states and filings, notices,
approvals or clearances required under federal or state banking laws, no notice
to, registration, declaration or filing with, exemption or review by, or
authorization, order, consent or approval of, any Governmental Entity, or
expiration or termination of any statutory waiting period, is necessary for the
consummation by the Company of the transactions contemplated by this Agreement
or the other Transaction Documents.

       

      (e)           Knowledge as to
Conditions. As of the date of this Agreement, the Company knows of no
reason why any regulatory approvals and, to the extent necessary, any other
approvals, authorizations, filings, registrations, and notices required or
otherwise a condition to the consummation of the transactions contemplated by
the Transaction Documents or the Public Offering will not be
obtained.

       

      (f)           Financial
Statements.  The consolidated balance sheets of the Company as
of December 31, 2008 and 2007 and related consolidated statements of income,
stockholders’ equity and cash flows for the three years ended December 31,
2008, together with the notes thereto, certified by Symonds, Evans &
Company, P.C. and included in the Company 10-K, as filed with the SEC, and the
unaudited consolidated balance sheets of the Company as of September 30, 2009,
June 30, 2009 and March 31, 2009 and related consolidated statements of income,
stockholders’ equity and cash flows for the periods then ended, included in the
Company’s Quarterly Reports on Form 10-Q for the periods ended September 30,
2009, June 30, 2009 and March 31, 2009 (collectively, the “Company Financial
Statements”), (1) have been prepared from, and are in accordance with,
the books and records of the Company and the Company Subsidiaries, (2) complied,
as of their respective date of filing with the SEC, in all material respects
with applicable accounting requirements and with the published rules and
regulations of the SEC with respect thereto, (3) have been prepared in
accordance with U.S. generally accepted accounting principles (“GAAP”) applied on a
consistent basis and (4) present fairly in all material respects the
consolidated financial position of the Company and the Company Subsidiaries at
the dates set forth therein and the consolidated results of operations, changes
in stockholders’ equity and cash flows of the Company and the Company
Subsidiaries for the periods stated therein (subject to the absence of notes and
year-end audit adjustments in the case of interim unaudited
statements).

       

      
        
          
          

        

        
          -11-

          
            

          

        

        
          
          

        

      

       

      (g)           Reports.

      (1)           Since
December 31, 2006, the Company and each Company Subsidiary have filed all
reports, registrations, documents, filings, statements and submissions together
with any required amendments thereto, that it was required to file with any
Governmental Entity (the foregoing, collectively, the “Company Reports”) and have
paid all fees and assessments due and payable in connection
therewith.  As of their respective filing dates, the Company Reports
complied in all material respects with all statutes and applicable rules and
regulations of the applicable Governmental Entities, as the case may
be.  As of the date of this Agreement, there are no outstanding
comments from the SEC or any other Governmental Entity with respect to any
Company Report.  The Company Reports, including the documents
incorporated by reference in each of them, each contained all of the information
required to be included in it and, when it was filed and as of the date of each
such Company Report filed with or furnished to the SEC, such Company Report did
not, as of its date or if amended prior to the date of this Agreement, as of the
date of such amendment, contain an untrue statement of a material fact or omit
to state a material fact necessary in order to make the statements made in it
not misleading and complied as to form in all material respects with the
applicable requirements of the Securities Act of 1933, as amended, or any
successor statute (the “Securities Act”), and the
Securities Exchange Act of 1934, as amended, or any successor statute (the
“Exchange
Act”).  No executive officer of the Company has failed in any
respect to make the certifications required of him or her under Section 302
or 906 of the Sarbanes-Oxley Act of 2002.  There are no facts or
circumstances that would prevent its chief executive officer and chief financial
officer from giving the certifications and attestations required pursuant to
Rules 13a-14 and 15d-14 under the Exchange Act, without qualification, when next
due.

       

      (2)           The
records, systems, controls, data and information of the Company and the Company
Subsidiaries are recorded, stored, maintained and operated under means
(including any electronic, mechanical or photographic process, whether
computerized or not) that are under the exclusive ownership and direct control
of the Company or the Company Subsidiaries or accountants (including all means
of access thereto and therefrom).  The Company (A) has
implemented and maintains disclosure controls and procedures (as defined in Rule
13a-15(e) of the Exchange Act) to ensure that material information relating to
the Company, including its consolidated subsidiaries, is made known to the chief
executive officer and the chief financial officer of the Company by others
within those entities, and (B) has disclosed, based on its most recent
evaluation prior to the date of this Agreement, to the Company’s outside
auditors and the audit committee of the Board of Directors (x) any
significant deficiencies and material weaknesses in the design or operation of
internal control over financial reporting (as defined in Rule 13a-15(f) of the
Exchange Act) that are reasonably likely to adversely affect the Company’s
ability to record, process, summarize, and report financial information, and
(y) any fraud, whether or not material, that involves management or other
employees who have a significant role in the Company’s internal controls over
financial reporting.  The Company has no knowledge of any reason that
its outside auditors and its chief executive officer and chief financial officer
will not be able to give the certifications and attestations required pursuant
to the rules and regulations adopted pursuant to Section 404 of the
Sarbanes-Oxley Act of 2002, without qualification, when next
due.  Since December 31, 2006, (i) neither the Company nor any Company
Subsidiary nor, to the knowledge of the Company, any director, officer,
employee, auditor, accountant or representative of the Company or any Company
Subsidiary has received or otherwise had or obtained knowledge of any material
complaint, allegation, assertion or claim, whether written or oral, regarding
the accounting or auditing practices, procedures, methodologies or methods of
the Company or any Company Subsidiary or their respective internal accounting
controls, including any material complaint, allegation, assertion or claim that
the Company or any Company Subsidiary has engaged in questionable accounting or
auditing practices, and (ii) no attorney representing the Company or any Company
Subsidiary, whether or not employed by the Company or any Company Subsidiary,
has reported evidence of a violation of securities laws, breach of fiduciary
duty or similar violation by the Company or any of its officers, directors,
employees or agents to the Board of Directors or any committee thereof or to any
director or officer of the Company.

      
        
           

        

        
          -12-

          
            

          

        

        
           

        

      

       

      (h)           Properties and
Leases.  Except for any Permitted Liens, the Company and each
Company Subsidiary have good title free and clear of any Liens to all the real
and personal property reflected in the Company’s consolidated balance sheet as
of December 31, 2008 included in the Company 10-K for the period then ended, and
all real and personal property acquired since such date, except such real and
personal property as has been disposed of in the ordinary course of
business.  For purposes of this Agreement, “Permitted Liens” means (i)
Liens for taxes and other governmental charges and assessments arising in the
ordinary course which are not yet due and payable, (ii) Liens of landlords and
Liens of carriers, warehousemen, mechanics and materialmen and other like Liens
arising in the ordinary course of business for sums not yet due and payable, and
(iii) other Liens or imperfections on property which are not material in amount
or do not materially detract from the value of or materially impair the existing
use of the property affected by such Lien or imperfection.  Except as
would not be expected to have a Material Adverse Effect, all leases of real
property and all other leases pursuant to which the Company or such Company
Subsidiary, as lessee, leases real or personal property are valid and effective
in accordance with their respective terms and there is not, under any such
lease, any existing default by the Company or such Company Subsidiary or any
event which, with notice or lapse of time or both, would constitute such a
default.

       

      (i)           Taxes.

      (1)           Each
of the Company and the Company Subsidiaries has filed all federal, state,
county, local and foreign material Tax Returns required to be filed by it and
paid all Taxes owed by it and no Taxes owed by it or assessments received by it
are delinquent.  The federal income Tax Returns of the Company and the
Company Subsidiaries for the fiscal year ended December 31, 2006, and for all
fiscal years prior thereto, are for the purposes of routine audit by the
Internal Revenue Service (the “IRS”) closed because of the
statute of limitations, and no claims for additional Taxes for such fiscal years
are pending.  Neither the Company nor any Company Subsidiary has
waived any statute of limitations with respect to Taxes or agreed to any
extension of time with respect to a Tax assessment or deficiency, in each case
that is still in effect, or has pending a request for any such extension or
waiver.  Neither the Company nor any Company Subsidiary is a party to
any pending action or proceeding, nor to the Company’s knowledge, is any such
action or proceeding threatened by any Governmental Entity, for the assessment
or collection of Taxes, interest, penalties, assessments or deficiencies and no
material deficiencies have been proposed by any federal, state, local or foreign
taxing authority in connection with an audit or examination of the Tax Returns,
business or properties of the Company or any Company Subsidiary which has not
been settled, resolved and fully satisfied, or for which reserves adequate in
accordance with GAAP have not been provided.  Each of the Company and
the Company Subsidiaries has withheld and paid all Taxes that it is required to
withhold from amounts owing to employees, creditors or other third
parties.  Neither the Company nor any Company Subsidiary is a party
to, is bound by or has any obligation under, any material Tax sharing or
material Tax indemnity agreement or similar contract or arrangement other than
any contract or agreement between or among the Company and any Company
Subsidiary.  Neither the Company nor any Company Subsidiary has
participated in any “reportable transaction” within the meaning of Treasury
Regulations Section 1.6011-4, or any other transaction requiring disclosure
under analogous provisions of state, local or foreign law.  Neither
the Company nor any Company Subsidiary has liability for the Taxes of any person
other than the Company or any Company Subsidiary under Treasury Regulations
Section 1.1502-6 (or any similar provision of state, local or foreign
law).  The Company has not been a “distributing corporation” or a
“controlled corporation” in any distribution in which the parties to such
distribution treated the distribution as one to which Section 355 of the
Code is applicable.  The Company has not been a United
States real property holding corporation within the meaning of Section 897 of
the Code during the applicable period specified in Section 897(c)(1)(A)(ii) of
the Code.  For the purpose of this Agreement, the term “Tax” (including, with
correlative meaning, the term “Taxes”) shall mean any and
all domestic or foreign, federal, state, local or other taxes of any kind
(together with any and all interest, penalties, additions to tax and additional
amounts imposed with respect thereto) imposed by any Governmental Entity,
including taxes on or with respect to income, franchises, windfall or other
profits, gross receipts, property, sales, use, capital stock, payroll,
employment, unemployment, social security, workers’ compensation or net worth,
and taxes in the nature of excise, withholding, ad valorem or value added or
similar taxes, and the term “Tax Return” means any return,
report, information return or other document (including any related or
supporting information, and attachments and exhibits) required to be filed with
respect to Taxes, including, without limitation, all information returns
relating to Taxes of third parties, any claims for refunds of Taxes and any
amendment or supplements to any of the foregoing.

      
        
           

        

        
          -13-

          
            

          

        

        
           

        

      

    

    (2)           To
the knowledge of the Company, the deferred tax asset on the Company’s balance
sheet as of September 30, 2009 (as referenced in Note 8 thereto) does not
require a material valuation reserve at September 30, 2009.

     

    (3)           Under
the current tax planning strategy as disclosed to the Investor, the Company
expects that it will receive the income tax refund from the calendar year 2007
included as a refundable income taxes receivable discussed in the notes to the
Company’s financial statements for the period ended September 30,
2009.

     

    (j)           Absence of Certain
Changes.  Since December 31, 2008, the Company has not, and no
Company Subsidiary has, made or declared any distribution or dividend in cash or
in kind to its stockholders or issued or repurchased any shares of its capital
stock or other equity interests.  Since December 31, 2008, the
business and operations of the Company and the Company Subsidiaries have been
conducted in the ordinary course of business consistent with past practice, and
there has not been:

     

    (1)           Except
as Previously Disclosed, any circumstance, occurrence, or development which,
individually or in the aggregate with other circumstances, occurrences, or
developments, has had or is reasonably likely to have a Material Adverse Effect
on the Company;

     

    (2)           any
material damage, destruction, or other casualty loss with respect to any
material asset or property owned, leased, or otherwise used by the Company or
any Company Subsidiary, whether or not covered by insurance; or

    
      
         

      

      
        -14-

        
          

        

      

      
         

      

    

    (3)           any
change in any method of accounting or accounting policies by the
Company.

     

    (k)           Commitments and
Contracts.  The Company has Previously Disclosed or provided to
the Investor or his representatives, prior to the date hereof, true, correct,
and complete copies of each of the following to which the Company or any Company
Subsidiary is a party or subject (whether written or oral, express or implied)
(each, a “Company Significant
Agreement”):

     

    (1)           any
labor contract or agreement with any labor union;

     

    (2)           any
contract or agreement which grants any person a right of first refusal, right of
first offer or similar right with respect to any material properties, assets or
businesses of the Company or the Company Subsidiaries;

     

    (3)           any
contract containing covenants that limit the ability of the Company or any
Company Subsidiary to compete in any line of business or with any person or
which involve any restriction of the geographical area in which, or method by
which or with whom, the Company or any Company Subsidiary may carry on its
business (other than as may be required by law or applicable regulatory
authorities); and any contract that could require the disposition of any
material assets or line of business of the Company or any Company
Subsidiary;

     

    (4)           any
joint venture, partnership, strategic alliance, or other similar contract
(including any franchising agreement, but in any event, excluding introducing
broker agreements); and any contract relating to the acquisition or disposition
of any material business or material assets (whether by merger, sale of stock or
assets, or otherwise), which acquisition or disposition is not yet complete or
where such contract contains continuing material obligations or contains
continuing indemnity obligations of the Company or any of the Company
Subsidiaries;

     

    (5)           any
real property lease and any other lease with annual rental payments aggregating
$1,000,000 or more;

     

    (6)           other
than with respect to loans, any contract providing for, or reasonably likely to
result in, the receipt or expenditure of more than $1,000,000 on an annual
basis, including the payment or receipt of royalties or other amounts calculated
based upon revenues or income;

     

    (7)           any
contract or arrangement under which the Company or any of the Company
Subsidiaries is licensed or otherwise permitted by a third party to use any
Intellectual Property that is material to its business (except for any
“shrinkwrap” or “click through” license agreements or other agreements for
software that is generally available to the public and has not been customized
for the Company or the Company Subsidiaries) or under which a third party is
licensed or otherwise permitted to use any Intellectual Property owned by the
Company or any of the Company Subsidiaries;

    
      
         

      

      
        -15-

        
          

        

      

      
         

      

    

    (8)           any
contract that by its terms limits the payment of dividends or other
distributions by the Company or any Company Subsidiary;

     

    (9)           any
standstill or similar agreement pursuant to which the Company or any Company
Subsidiary has agreed not to acquire assets or securities of another
person;

     

    (10)           any
contract that would prevent, delay or impede the Company’s ability to consummate
the transactions contemplated by this Agreement and the Other Transaction
Documents;

     

    (11)           any
contract providing for indemnification by the Company or any Company Subsidiary
of any person, except for immaterial contracts entered into in the ordinary
course of business consistent with past practice;

     

    (12)           other
than contracts relating to the ordinary course management of credit extensions,
any contract that contains a put, call, or similar right pursuant to which the
Company or any Company Subsidiary could be required to purchase or sell, as
applicable, any equity interests or assets that have a fair market value or
purchase price of more than $250,000; and

     

    (13)           any
other contract or agreement which is a “material contract” within the meaning of
Item 601(b)(10) of Regulation S-K.

     

    Each of
the Company Significant Agreements is valid and binding on the Company and the
Company Subsidiaries, as applicable, and in full force and
effect.  The Company and each of the Company Subsidiaries, as
applicable, are in compliance in all material respects with and have performed
in all material respects all obligations required to be performed by them to
date under each Company Significant Agreement.  Neither the Company
nor any of the Company Subsidiaries knows of, or has received notice of, any
violation or default (or any condition which with the passage of time or the
giving of notice would cause such a violation of or a default) by any party
under any Company Significant Agreement.  Consummation of the
transactions contemplated by this Agreement will not place the Company or any of
the Company Subsidiaries in breach or default of any Company Significant
Agreement, or trigger any modification, termination or acceleration
thereunder.  Other than those contemplated hereby, there are no
transactions or series of related transactions, agreements, arrangements or
understandings, nor are there any currently proposed transactions, or series of
related transactions between the Company or any Company Subsidiaries, on the one
hand, and the Company, any current or former director or executive officer of
the Company or any Company Subsidiaries or any person who Beneficially Owns 5%
or more of the Common Shares (or any of such person’s immediate family members
or Affiliates) (other than Company Subsidiaries), on the other
hand.

     

    (l)           Offering of
Securities.  Neither the Company nor any person acting on its
behalf has taken any action (including, any offering of any securities of the
Company under circumstances which would require the integration of such offering
with the offering of any of the Common Stock to be issued pursuant to this
Agreement or any other Transaction Document under the Securities Act and the
rules and regulations of the SEC promulgated thereunder) which would subject the
offering, issuance, or sale of any of such Common Stock to be issued to the
registration requirements of the Securities Act.

    
      
         

      

      
        -16-

        
          

        

      

      
         

      

    

    (m)           Litigation and Other
Proceedings; No Undisclosed Liabilities.

     

    (1)           There
is no pending or, to the knowledge of the Company, threatened, claim, action,
suit, arbitration, mediation, demand, hearing, investigation or proceeding
against the Company or any Company Subsidiary that (A) involves a claim that is
or that could be, if adversely determined, for damages in excess of $100,000, or
(B) individually or in the aggregate, has prevented or materially impaired, or
would reasonably be expected to prevent or materially impair, the ability of the
Company to consummate the transactions contemplated hereby. Neither the Company
nor any Company Subsidiary is subject to any order, judgment or
decree.

     

    (2)           Neither
the Company nor any of the Company Subsidiaries has any liabilities or
obligations of any nature (absolute, accrued, contingent, or otherwise) which
are not appropriately reflected or reserved against in the financial statements
described in Section 2.2(f) to the extent required to be so reflected or
reserved against in accordance with GAAP, except for liabilities that have
arisen since September 30, 2009 in the ordinary course of business consistent
with past practice.

     

    (n)           Compliance with Laws and
Other Matters; Insurance.  Except as Previously Disclosed, the
Company and each Company Subsidiary:

     

    (1)           in
the conduct of its business is in compliance in all material respects with all,
and the condition and use of its properties does not violate or infringe in any
material respect any, applicable domestic (federal, state or local) or foreign
laws, statutes, ordinances, licenses, rules, regulations, judgments, demands,
writs, injunctions, orders or decrees applicable thereto or to employees
conducting its business, including the Troubled Asset Relief Program, the
Sarbanes-Oxley Act of 2002, the Equal Credit Opportunity Act, the Fair Housing
Act, the Community Reinvestment Act, the Home Mortgage Disclosure Act, the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT) Act of 2001, all other applicable
fair lending laws or other laws relating to discrimination and the Bank Secrecy
Act;

     

    (2)           has
all material permits, licenses, franchises, authorizations, orders, and
approvals of, and has made all filings, applications, and registrations with,
Governmental Entities that are required in order to permit it to own or lease
its properties and assets and to carry on its business as presently conducted
and that are material to the business of the Company or such Company Subsidiary;
and all such permits, licenses, certificates of authority, orders and approvals
are in full force and effect, and all such filings, applications and
registrations are current, and, to the knowledge of the Company, no suspension
or cancellation of any of them is threatened;

     

    (3)           currently
is complying in all material respects with and, to the knowledge of the Company,
is not under investigation with respect to, nor has been, threatened by any
Governmental Entity to be charged with or given notice of any material violation
of, all applicable federal, state, local and foreign laws, regulations, rules,
judgments, injunctions or decrees;

    
      
         

      

      
        -17-

        
          

        

      

      
         

      

    

    (4)           has,
except for statutory or regulatory restrictions of general application, not been
placed under any restriction by a Governmental Entity on its business or
properties, and except for routine examinations by applicable Governmental
Entities, as of the date of this Agreement, received no notification or
communication from any Governmental Entity that an investigation by any
Governmental Entity with respect to the Company or any of the Company
Subsidiaries is pending or threatened;

     

    (5)           has
not, since January 1, 2006 nor has any other person on behalf of the Company or
any Company Subsidiary that qualifies as a “financial institution” under the
U.S. Anti-Money Laundering laws, knowingly acted, by itself or in conjunction
with another, in any act in connection with the concealment of any currency,
securities or other proprietary interest that is the result of a felony as
defined in the U.S. Anti-Money Laundering laws (“Unlawful Gains”), nor
knowingly accepted, transported, stored, dealt in or brokered any sale, purchase
or any transaction of other nature for Unlawful Gains;

     

    (6)           to
the extent it qualifies as a “financial institution” under the U.S. Anti-Money
Laundering laws, has implemented such anti-money laundering mechanisms and kept
and filed all reports and other necessary documents as required by, and
otherwise complied with, the U.S. Anti-Money Laundering laws and the rules and
regulations thereunder; and

     

    (7)           is
presently insured, and during each of the past two calendar years (or during
such lesser period of time as the Company has owned such Company Subsidiary) has
been insured, for reasonable amounts with, to the knowledge of the Company,
financially sound and reputable insurance companies against such risks as
companies engaged in a similar business would, in accordance with industry
practice, customarily be insured.

     

    (o)           Labor.  Employees
of the Company and the Company Subsidiaries are not and have never been
represented by any labor union nor are any collective bargaining agreements
otherwise in effect with respect to such employees.  No labor
organization or group of employees of the Company or any Company Subsidiary has
made a pending demand for recognition or certification, and there are no
representation or certification proceedings or petitions seeking a
representation proceeding presently pending or, to the Company’s knowledge,
threatened to be brought or filed with the National Labor Relations Board or any
other labor relations tribunal or authority.  There are no organizing
activities, strikes, work stoppages, slowdowns, lockouts, arbitrations or
grievances, or other labor disputes pending or, to the knowledge of the Company,
threatened against or involving the Company or any Company
Subsidiary.  Each of the Company and the Company Subsidiaries are in
compliance in all material respects with all applicable laws respecting
employment and employment practices, terms and conditions of employment, and
wages and hours.

     

    (p)           Company Benefit
Plans.

    
      
         

      

      
        -18-

        
          

        

      

      
         

      

    

    (1)           “Benefit Plan” means all
employment agreements, employee benefit and compensation plans, programs,
agreements, contracts, policies, practices, or other arrangements providing
compensation or benefits to any current or former employee, officer, director or
consultant of the Company or any Company Subsidiary or any beneficiary or
dependent thereof that is sponsored or maintained by the Company or any Company
Subsidiary or to which the Company or any Company Subsidiary contributes or is
obligated to contribute or is party, whether or not written, including without
limitation any “employee welfare benefit plan” within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), any
“employee pension benefit plan” within the meaning of Section 3(2) of ERISA
(whether or not such plan is subject to ERISA) and any bonus, incentive,
deferred compensation, vacation, stock purchase, stock appreciation right, stock
option or equity award, equity-based severance, employment, change of control,
consulting or fringe benefit plan, program, agreement or policy.  Each
Benefit Plan is listed on Section 2.2(p)(1) of the Company’s Disclosure
Schedule.  True and complete copies of all Benefit Plans listed on
Section 2.2(p)(1) of the Company’s Disclosure Schedule have been made
available to the Investor prior to the date hereof or have been filed with a
Company Report.

     

    (2)           With
respect to each Benefit Plan, (A) the Company and the Company Subsidiaries have
complied, and are now in compliance with the applicable provisions of ERISA, and
the Internal Revenue Code of 1986, as amended (the “Code”) and all other laws and
regulations applicable to such Benefit Plan and (B) each Benefit Plan has been
administered in accordance with its terms.  None of the Company or the
Company Subsidiaries nor any of their respective ERISA Affiliates has incurred
any withdrawal liability as a result of a complete or partial withdrawal from a
multiemployer plan, as those terms are defined in Part I of Subtitle E of Title
IV of ERISA, that has not been satisfied in full.  “ERISA Affiliate” means any
entity, trade or business, whether or not incorporated, which together with the
Company and the Company Subsidiaries, would be deemed a “single employer” within
the meaning of Section 4001 of ERISA or Sections 414(b), (c), (m) or
(o) of the Code.

     

    (3)           Each
Benefit Plan which is subject to ERISA (an “ERISA Plan”) that is an
“employee pension benefit plan” within the meaning of Section 3(2) of ERISA
(“Pension Plan”) and
that is intended to be qualified under Section 401(a) of the Code is so
qualified, has received a favorable determination letter from the IRS and
nothing has occurred, whether by action or failure to act, that could likely
result in revocation of any such favorable determination or opinion letter or
the loss of the qualification of such Benefit Plan under Section 401(a) of
the Code.  Neither the Company nor any Company Subsidiary has engaged
in a transaction with respect to any ERISA Plan that, assuming the taxable
period of such transaction expired as of the date hereof, could subject the
Company or any Company Subsidiary to a tax or penalty imposed by either
Section 4975 of the Code or Section 502(i) of
ERISA.  Neither the Company nor any Company Subsidiary has incurred or
reasonably expects to incur a material tax or penalty imposed by Section 4980F
of the Code or Section 502 of ERISA.

    
      
         

      

      
        -19-

        
          

        

      

      
         

      

    

    (4)           Neither
the Company, any Company Subsidiary nor any ERISA Affiliate (x) sponsors,
maintains or contributes to or has within the past six years sponsored,
maintained or contributed to a Pension Plan that is subject to Subtitles C or D
of Title IV of ERISA or (y) sponsors, maintains or has any liability with
respect to or an obligation to contribute to or has within the past six years
sponsored, maintained, had any liability with respect to, or had an obligation
to contribute to a “multiemployer plan” within the meaning of Section 3(37)
of ERISA.

     

    (5)           None
of the execution and delivery of this Agreement, the issuance of Common Stock,
nor the stockholder approval or consummation of the transactions contemplated
hereby, nor the transactions contemplated as part of the Other Private
Placements or the Public Offering, will, whether alone or in connection with
another event, (i) constitute a “change in control” or “change of control”
within the meaning of any Benefit Plan or result in any material payment or
benefit (including without limitation severance, unemployment compensation,
“excess parachute payment” (within the meaning of Section 280G of the
Code), forgiveness of indebtedness or otherwise) becoming due to any current or
former employee, officer, director or consultant of the Company or any Company
Subsidiary from the Company or any Company Subsidiary under any Benefit Plan or
any other agreement with any employee, including, for the avoidance of doubt,
any employment or change in control agreements, (ii) result in payments under
any of the Benefit Plans which would not be deductible under Section 162(m)
or Section 280G of the Code, (iii) materially increase any compensation or
benefits otherwise payable under any Benefit Plan, (iv) result in any
acceleration of the time of payment or vesting of any such benefits, including,
for the avoidance of doubt, the Company Stock Option Plans, (v) require the
funding or increase in the funding of any such benefits, or (vi) result in any
limitation on the right of the Company or any Company Subsidiary to amend,
merge, terminate or receive a reversion of assets from any Benefit Plan or
related trust.

     

    (6)           As
of the date hereof, there is no pending or, to the knowledge of the Company,
threatened, litigation relating to the Benefit Plans.  Neither the
Company nor any Company Subsidiary has any obligations for retiree health and
life benefits under any ERISA Plan or collective bargaining agreement, except
for health continuation coverage as required by Section 4980B of the Code
or Part 6 of Title I of ERISA and at no expense to the Company and the Company
Subsidiaries.

     

    (7)           There
are no pending or, to the knowledge of the Company, threatened claims, lawsuits
or arbitrations which have been asserted or instituted against (i) the Benefit
Plans, (ii) any fiduciaries thereof with respect to their duties to the Benefit
Plans, or (iii) the assets of any of the trusts under any of the Benefit
Plans.

     

    (q)           Status of
Securities.  Upon receipt of the Stockholder Approvals, the
shares of Common Stock to be issued pursuant to this Agreement and the other
Transaction Documents have been duly authorized by all necessary corporate
action of the Company.  When issued and sold against receipt of the
consideration therefor as provided in this Agreement and the other Transaction
Documents, such shares of Common Stock will be validly issued, fully paid and
nonassessable, and such issuance will not subject the holders thereof to
personal liability and will not be subject to preemptive rights of any other
stockholder of the Company.

    
      
         

      

      
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    (r)           Investment
Company.  Neither the Company nor any of the Company
Subsidiaries is an “investment company” as defined under the Investment Company
Act of 1940, as amended, and neither the Company nor any of the Company
Subsidiaries sponsors any person that is such an investment
company.

     

    (s)           Risk Management;
Derivatives.

     

    (1)           The
Company and the Company Subsidiaries have in place risk management policies and
procedures sufficient in scope and operation to protect against risks of the
type and in amounts expected to be incurred by persons of similar size and in
similar lines of business as the Company and the Company
Subsidiaries.

     

    (2)           All
derivative instruments, including swaps, caps, floors and option agreements,
whether entered into for the Company’s own account, or for the account of one or
more of the Company Subsidiaries or their customers, were entered into
(i) only for purposes of mitigating identified risk and in the ordinary
course of business, (ii) in accordance with prudent practices and in
material compliance with all applicable laws, rules, regulations and regulatory
policies, and (iii) with counterparties believed by the Company to be
financially responsible at the time; and each of them constitutes the valid and
legally binding obligation of the Company or one of the Company Subsidiaries,
enforceable in accordance with its terms.  Neither the Company nor the
Company Subsidiaries, nor, to the knowledge of the Company, any other party
thereto, is in breach of any of its obligations under any such agreement or
arrangement.

     

    (t)           Foreign Corrupt Practices
and International Trade Sanctions.  Neither the Company nor any
Company Subsidiary, nor any of their respective directors, officers, agents,
employees or any other persons acting on their behalf (i) has violated the
Foreign Corrupt Practices Act, 15 U.S.C. § 78dd-1 et seq., as amended, or any
other similar applicable foreign, federal, or state legal requirement,
(ii) has made or provided, or caused to be made or provided, directly or
indirectly, any payment or thing of value to a foreign official, foreign
political party, candidate for office or any other person knowing that the
person will pay or offer to pay the foreign official, party or candidate, for
the purpose of influencing a decision, inducing an official to violate their
lawful duty, securing any improper advantage, or inducing a foreign official to
use their influence to affect a governmental decision, (iii) has paid,
accepted or received any unlawful contributions, payments, expenditures or
gifts, (iv) has violated or operated in noncompliance with any export
restrictions, money laundering law, anti-terrorism law or regulation,
anti-boycott regulations or embargo regulations, or (v) is currently
subject to any United States sanctions administered by the Office of Foreign
Assets Control of the United States Treasury Department.

     

    (u)           Environmental
Liability.  There is no legal, administrative, or other
proceeding, claim or action of any nature seeking to impose, or that could
result in the imposition of, on the Company or any Company Subsidiary, any
liability relating to the release of hazardous substances as defined under any
local, state or federal environmental statute, regulation or ordinance,
including the Comprehensive Environmental Response, Compensation and Liability
Act of 1980, as amended, pending or, to the knowledge of the Company, threatened
against the Company or any Company Subsidiary; to the Company’s knowledge, there
is no reasonable basis for any such proceeding, claim or action; and to the
Company’s knowledge, neither the Company nor any Company Subsidiary is subject
to any agreement, order, judgment or decree by or with any Governmental Entity
or third party imposing any such environmental liability.

    
      
         

      

      
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    (v)           Anti-Takeover
Provisions.  The Company and the Board of Directors has taken
all actions necessary to ensure that the transactions contemplated by the
Transaction Documents or any of the transactions contemplated hereby or thereby,
taken as a whole, are not subject to the provisions of Section 60.835 of the
Oregon Business Corporation Act (the “OBCA”) (including, but not
limited to, the approval of such transactions by the Board of Directors and/or
stockholders as contemplated by Section 60.835 of the OBCA and Article X of the
Articles of Incorporation) and Article X of the Articles of Incorporation and
any other similar provisions of an anti-takeover nature contained in its
organizational documents and the provisions of any federal or state
“anti-takeover”, “fair price”, “moratorium”, “control share”, “supermajority”,
“affiliate transaction”, or “business combination” law, including any provisions
of the Oregon Business Corporation Act (each, a “Takeover Law”).  In
the case that such transactions are subject to such provisions or laws, the
Board of Directors shall take all necessary action to ensure that such
transactions shall be deemed to be exceptions to such provisions or laws,
including, but not limited to, the approval of such transactions as contemplated
under Section 60.835(1) of the OBCA.  The acquisition of the Common
Stock pursuant to the Transaction Documents and the consummation of the
transaction contemplated by the Transaction Documents is not a “control share
acquisition” or otherwise subject to the provisions of Section 60.801 to
Section 60.816 of the Oregon Business Corporation Act.

     

    (w)           Intellectual
Property.  (i) The Company and the Company Subsidiaries own
(free and clear of any claims, liens, encumbrances, exclusive licenses or
non-exclusive licenses not granted in the ordinary course of business) or have a
valid license to use all Intellectual Property used in or necessary to carry on
their business as currently conducted, and (ii) such Intellectual Property
referenced in clause (i) above is valid, subsisting and enforceable, and is not
subject to any outstanding order, judgment, decree or agreement adversely
affecting the Company’s or the Company Subsidiaries’ use of, or rights to, such
Intellectual Property.  The Company and the Company Subsidiaries have
sufficient rights to use all Intellectual Property used in their business as
presently conducted, all of which rights shall survive unchanged the
consummation of the transactions contemplated by this Agreement. Neither the
Company nor any Company Subsidiary has received any notice of infringement or
misappropriation of, or  any conflict with, the rights of others with
respect to any Intellectual Property, and no reasonable basis exists for any
such claim. To the Company’s knowledge, no third party has infringed,
misappropriated or otherwise violated the Intellectual Property rights of the
Company or the Company Subsidiaries. There is no litigation, opposition,
cancellation, proceeding, objection or claim pending, asserted, or, to the
Company’s knowledge, threatened against the Company or any Company Subsidiary
concerning the ownership, validity, registerability, enforceability,
infringement or use of, or licensed right to use, and Intellectual Property. To
the knowledge of the Company, none of  the Company or any of the
Company Subsidiaries is using or enforcing any  Intellectual Property
owned by or licensed to the Company or any of the Company Subsidiaries in a
manner that would be expected to result in the abandonment, cancellation or
unenforceability of such Intellectual Property.  The Company and each
of the Company Subsidiaries has taken all reasonable measures to protect the
Intellectual Property owned by or licensed to the Company or any of the Company
Subsidiaries.

    
      
         

      

      
        -22-

        
          

        

      

      
         

      

    

    “Intellectual Property” shall
mean trademarks, service marks, brand names, domain names, certification marks,
trade dress and other indications of origin, the goodwill associated with the
foregoing and registrations in any jurisdiction of, and applications in any
jurisdiction to register, the foregoing, including any extension, modification
or renewal of any such registration or application; inventions, discoveries and
ideas, whether patentable or not, in any jurisdiction; patents, applications for
patents (including divisions, continuations, continuations in part and renewal
applications), and any renewals, extensions or reissues thereof, in any
jurisdiction; nonpublic information, trade secrets and confidential information
and rights in any jurisdiction to limit the use or disclosure thereof by any
person; writings and other works, whether copyrightable or not, in any
jurisdiction; and registrations or applications for registration of copyrights
in any jurisdiction, and any renewals or extensions thereof; and any similar
intellectual property or proprietary rights.

     

    (x)           Brokers and
Finders.  Except for Keefe, Bruyette & Woods, Inc., neither
the Company nor any Company Subsidiary nor any of their respective officers,
directors or employees has employed any broker or finder or incurred any
liability for any financial advisory fees, brokerage fees, commissions or
finder’s fees, and no broker or finder has acted directly or indirectly for the
Company or any Company Subsidiary, in connection with the Transaction Documents
or the transactions contemplated hereby and thereby.

     

    (y)           Agreements with Regulatory
Agencies.  Except as Previously Disclosed, neither the Company
nor any Company Subsidiary is subject to any cease-and-desist or other similar
order or enforcement action issued by, or is a party to any written agreement,
consent agreement or memorandum of understanding with, or is a party to any
commitment letter or similar undertaking to, or is subject to any capital
directive by, or since December 31, 2007, has adopted any board resolutions at
the request of, any Governmental Entity that currently restricts the conduct of
its business or that relates to its capital adequacy, its liquidity and funding
policies and practices, its ability to pay dividends, its credit, risk
management or compliance policies, its internal controls, its management, or its
operations or business (each item in this sentence, a “Regulatory
Agreement”).  The Company and each Company Subsidiary are in
compliance with each Regulatory Agreement to which it is party or subject, and
neither the Company nor any Company Subsidiary has received any notice from any
Governmental Entity indicating that either the Company or any Company Subsidiary
is not in compliance with any such Regulatory Agreement.

     

    (z)           Loan
Portfolio.  The Company’s non-performing assets as of September
30, 2009 are $197,282,103.

     

    (aa)           Listing of Common
Stock.  The shares of Common Stock to be issued at the Closing
under this Agreement, the other Transaction Documents and the Public Offering
have been authorized, to the extent such Common Stock has been authorized under
the Articles of Incorporation, for listing on NASDAQ, subject to official notice
of issuance.

     

    (bb)           Directors’ and Officers’
Insurance. The Company (i) maintains directors’ and officers’
liability insurance and fiduciary liability insurance with financially sound and
reputable insurance companies with benefits and levels of coverage that have
been Previously Disclosed, (ii) has timely paid all premiums on such policies
and (iii) there has been no lapse in coverage during the term of such
policies.

    
      
         

      

      
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    (cc)           
Board of
Directors.  The Company does not have, and the Board of
Directors have not adopted, any policies, directives or resolutions, or any
amendments to the Company’s by-laws or certificate of incorporation, with
respect to qualification or other requirements for serving as a director on the
Board of Directors of the Company or any Subsidiary.

     

    (dd)           Other Private
Placements.  Concurrently with the execution and delivery of
this Agreement, the Company has agreed to sell Common Shares in the Other
Private Placements on the same economic and financial terms and conditions set
forth in this Agreement, with the closing of such Other Private Placements to
occur simultaneously with the Closing and the Public Offering.

     

    (ee)           Registration
Statements.  The Company’s registration statements, the
prospectuses forming a part of such registration statements and any amendments
thereto (including its registration statement on Form S-1 Reg. no. 333-162377,
filed on October 7, 2009, the prospectuses forming a part of such registration
statement and any amendments thereto), definitive proxy statements (including
the proxy statements to be filed in connection with the Stockholder Approvals)
filed or to be filed by it or any of the Company Subsidiaries subsequent to
December 31, 2008 under the Securities Act, or under Section 13(a), 13(c), 14 or
15(d) of the Exchange Act, in the form filed or as thereafter amended
(collectively, the “Company
SEC Filings”) with the SEC as of the date filed or amended prior to the
date hereof, as the case may be, (A) complied or will comply in all material
respects with the applicable requirements under the Securities Act or the
Exchange Act, as the case may be, and (B) did not and will not (for definitive
proxy statements, as of the date of filing with the SEC, and for registration
statements and the prospectuses contained therein, as of the time of sale as
defined in Rule 159 under the Securities Act) contain any untrue statement of a
material fact or omit to state a material fact required to be stated therein or
necessary to make the statements therein not misleading. Each of the statements
of financial position contained in or incorporated by reference into any of the
Company SEC Filings (including the related notes and schedules) fairly presented
or will fairly present in all material respects its financial position and that
of the Company Subsidiaries as of the date of such statement, and each of the
statements of income and changes in shareholders’ equity and cash flows or
equivalent statements in the Company SEC Filings (including any related notes
and schedules thereto) fairly presented or will fairly present in all material
respects, the results of operations, changes in shareholders’ equity and changes
in cash flows, as the case may be, of it and the Company Subsidiaries for the
periods to which those statements relate, in each case in accordance with GAAP
consistently applied during the periods involved, except in each case as may be
noted therein, and subject to normal year-end audit adjustments and as permitted
in the case of unaudited statements.

     

    (ff)           Approval by Continuing
Directors.  Two-thirds of the Continuing Directors (as defined
in the Articles of Incorporation) has voted in favor of the entering into of
this Agreement and the transactions contemplated by this Agreement, including
the issuance of shares, the increase in authorized shares and the reverse stock
split as described in the Company’s proxy statement filed pursuant to Section
14(a) of the Exchange Act on October 29, 2009 and has or will recommend approval
of the transactions contemplated by this Agreement to the Company’s
stockholders.

    
      
         

      

      
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    2.3           Representations and
Warranties of the Investor.  The Investor hereby represents and
warrants as of the date of this Agreement, solely with respect to himself and,
where expressly indicated, his Affiliates, to the Company that:

     

    (a)           Purchase for
Investment.  The Investor acknowledges that the Common Shares
have not been registered under the Securities Act or under any state securities
laws.  The Investor (1) is acquiring the Common Shares pursuant
to an exemption from registration under the Securities Act for his own account
solely for investment with no present intention or plan to distribute any of the
Common Shares to any person nor with a view to or for sale in connection with
any distribution thereof, (2) will not sell or otherwise dispose of any of
the Common Shares, except in compliance with the registration requirements or
exemption provisions of the Securities Act and any other applicable securities
laws, (3) has such knowledge and experience in financial and business
matters and in investments of this type that he is capable of evaluating the
merits and risks of his investment in the Common Shares and of making an
informed investment decision, and (4) is an “accredited investor” (as that
term is defined by Rule 501 of the Securities Act).  Without limiting
any of the foregoing, neither the Investor nor any of its Affiliates has taken,
and the Investor will not, and will cause his Affiliates not to, take any action
that would otherwise cause the Securities to be subject to the registration
requirements of the Securities Act.

     

    (b)           Financial
Capability.  The Investor will have immediately available funds
necessary to consummate the Closing, as of the date of the Closing, on the terms
and conditions contemplated by this Agreement.

     

    ARTICLE
III

     

    Covenants

     

    3.1           Filings; Other
Actions.

     

    (a)           The
Investor and the Company will cooperate and consult with each other and use
reasonable best efforts to prepare and file all necessary documentation, to
effect all necessary applications, notices, petitions, filings, and other
documents, and to obtain all necessary permits, consents, orders, approvals, and
authorizations of, or any exemption by, all third parties and Governmental
Entities, and expiration or termination of any applicable waiting periods,
necessary or advisable to consummate the transactions contemplated by this
Agreement, to perform covenants contemplated by this Agreement.  Each
party shall execute and deliver both before and after the Closing such further
certificates, agreements, and other documents and take such other actions as the
other party may reasonably request to consummate or implement such transactions
or to evidence such events or matters.  In particular, the Company
will use its reasonable best efforts to help the Investor promptly obtain or
submit, as the case may be, as promptly as practicable, the approvals and
authorizations of, filings and registrations with, and notifications to, or
expiration or termination of any applicable waiting period, all notices to and,
to the extent required by applicable law or regulation, consents, approvals, or
exemptions from bank regulatory authorities, for the transactions contemplated
by the Bolger Transaction Document.  The Investor and the Company will
each have the right to review in advance, and to the extent practicable, each
will consult with the other, in each case subject to applicable laws relating to
the exchange of information and confidential information related to the
Investor, all the information (other than confidential information) relating to
such other party, and any of their respective Affiliates, which appears in any
filing made with, or written materials submitted to, any third party or any
Governmental Entity in connection with the transactions contemplated by this
Agreement.  In exercising the foregoing right, each of the parties
hereto agrees to act reasonably and as promptly as practicable.  Each
party hereto agrees to keep the other party apprised of the status of matters
relating to completion of the transactions contemplated hereby.  The
Investor and the Company shall promptly furnish each other to the extent
permitted by applicable laws with copies of written communications received by
them or their subsidiaries from, or delivered by any of the foregoing to, any
Governmental Entity in respect of the transactions contemplated by this
Agreement or by any other Bolger Transaction
Document.  Notwithstanding the foregoing, the Investor shall not be
required to provide any materials to the Company that it deems private or
confidential nor shall be required to make any commitments to any Governmental
Entity in connection therewith or suffer any burdensome requirements or
restrictions in connection therewith.

    
      
         

      

      
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    (b)           The
Company shall call a special meeting of its stockholders, as promptly as
practicable, after the date of this Agreement to obtain the Stockholder
Approvals, including, without limitation, amending the Articles of Incorporation
to increase the number of authorized shares of Common Stock to 300 million,
approving the issuance of Common Shares for purposes of rule 5635 of NASDAQ’s
listing rules to the Investor and the investors participating in the Other
Private Placements.  The Board of Directors shall unanimously
recommend to the Company’s stockholders that such stockholders provide the
Stockholder Approvals, and shall not modify or withdraw such
resolution.  In connection with such meeting, the Company shall
promptly prepare (and the Investor will reasonably cooperate with the Company to
prepare) and file with the SEC a preliminary proxy statement, shall use its
reasonable best efforts to solicit proxies for such stockholder approval, and
shall use its reasonable best efforts to respond promptly to any comments of the
SEC or its staff and to cause a definitive proxy statement related to such
stockholders’ meeting to be mailed to the Company’s stockholders, as promptly as
practicable, after clearance by the SEC.  The Company shall notify the
Investor promptly of the receipt of any comments from the SEC or its staff with
respect to the proxy statement and of any request by the SEC or its staff for
amendments or supplements to such proxy statement or for additional information
and will supply the Investor with copies of all correspondence between the
Company or any of its representatives, on the one hand, and the SEC or its
staff, on the other hand, with respect to such proxy statement.  If at
any time prior to such stockholders’ meeting there shall occur any event that is
required to be set forth in an amendment or supplement to the proxy statement,
the Company shall, as promptly as practicable, prepare and mail to its
stockholders such an amendment or supplement.  The Investor and the
Company each agree to correct promptly any information provided by it or on its
behalf for use in the proxy statement if and to the extent that such information
shall have become false or misleading in any material respect, and the Company
shall, as promptly as practicable, prepare and mail to its stockholders an
amendment or supplement to correct such information to the extent required by
applicable laws and regulations.  The Company shall consult with the
Investor prior to mailing any proxy statement, or any amendment or supplement
thereto, and provide the Investor with reasonable opportunity to comment
thereon.  The directors’ recommendation described in this
Section 3.1 shall be included in the proxy statement filed in connection
with obtaining such stockholder approval.  Immediately upon approval
by stockholders of the increase in the Company’s authorized number of shares of
Common Stock as provided above, the Company shall file articles of amendment to
duly amend its Articles of Incorporation to include such
increase.

    
      
         

      

      
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    (c)           The
Company has filed a registration statement relating to the Public Offering with
the SEC (Registration No. 333-162377).  The Company shall promptly
prepare (and the Investor will reasonably cooperate with the Company to prepare)
and file with the SEC an amendment to the registration statement (including, for
purposes of this Section 3.1(c), the prospectuses forming a part thereof), and
shall use its reasonable best efforts to respond to any comments of the SEC or
its staff.  The Company shall notify the Investor promptly of the
receipt of any comments from the SEC or its staff with respect to the
registration statement and of any request by the SEC or its staff for amendments
or supplements to such registration statement or for additional information and
will supply the Investor with copies of all correspondence between the Company
or any of its representatives, on the one hand, and the SEC or its staff, on the
other hand, with respect to such registration statement.  If there
shall occur any event that is required to be set forth in an amendment or
supplement to the registration statement, the Company shall, as promptly as
practicable, prepare and file such an amendment or supplement.  The
Investor and the Company each agree to correct promptly any information provided
by it or on its behalf for use in the registration statement if and to the
extent that such information shall have become false or misleading in any
material respect, and the Company shall, as promptly as practicable, prepare and
file with the SEC an amendment or supplement to correct such information to the
extent required by applicable laws and regulations.  The Company shall
consult with the Investor prior to filing any registration statement, or any
amendment or supplement thereto, and provide the Investor with reasonable
opportunity to comment thereon.

     

    (d)           Each
party agrees, upon request, to furnish the other party with all information
concerning itself, its subsidiaries, Affiliates, directors, officers, partners,
and stockholders and such other matters as may be reasonably necessary or
advisable in connection with the proxy statement in connection with such
stockholders’ meeting and any other statement, filing, notice, or application
made by or on behalf of such other party or any of its subsidiaries to any
Governmental Entity in connection with the Bolger Transaction
Document.

     

    (e)           From
the date of this Agreement, until the Closing, the Company shall not, directly
or indirectly, amend, modify, or waive, and the Board of Directors shall not
recommend approval of any proposal to the stockholders having the effect of
amending, modifying, or waiving any provision in the Articles of Incorporation
or bylaws of the Company in any manner adverse to the Investor or any other
holder of Common Stock issued pursuant to this Agreement, including, for the
avoidance of doubt, any amendment, modification, or waiver that has the effect
of exempting any person (other than the Investor or any other holder of the
Securities issued pursuant to this Agreement) from the stock ownership
restrictions set forth in Article X of the Articles of
Incorporation.

     

    (f)           The
Company shall take all actions necessary to ensure that none of the execution
and delivery of this Agreement, nor the consummation of the transactions
contemplated hereby, nor the consummation of the transactions contemplated as
part of the Other Private Placements or the Public Offering, nor the Stockholder
Approvals will constitute a “change in control” or “change of control” within
the meaning of any Benefit Plan.

    
      
         

      

      
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    3.2           Expenses.  On
the earlier of the Closing Date and the termination of this Agreement, other
than a termination under circumstances that are directly and solely attributable
to a material breach by the Investor, the Company shall directly reimburse the
Investor for all out-of-pocket fees and expenses incurred in connection with due
diligence efforts, the negotiation and preparation of the Transaction Documents
and undertaking of the transactions contemplated by the Transaction Documents,
including, but not limited to, the Investor’s accounting, financial and
investment banking advisors, legal counsel and credit review, but excluding the
purchase or exercise price for any of the Securities), in an aggregate amount
not to exceed $1,250,000.  The Company shall be responsible for all
closing and annual administrative fees and expenses (including all costs
incurred to register the Registrable Securities and to obtain the Stockholder
Approvals, the fees and expenses of any Company advisors (including Company
counsel, the Company’s accounting and financial advisors and other professional
fees), SEC registration fees and related expenses, and fees and expenses of any
broker or finders.  Other than as set forth in this Section 3.2
and Section 4.7(b), each of the parties will
bear and pay all other costs and expenses incurred by it or him or on its or his
behalf in connection with the transactions contemplated under the Bolger
Transaction Document.

     

    3.3           Access, Information and
Confidentiality.

     

    (a)           From
the date of this Agreement, until the date when the shares of Common Stock owned
by the Investor in the aggregate represent less than 4.9% of all of the
outstanding Common Shares (counting for such purposes all shares of Common Stock
into or for which the Securities owned by the Investor are directly or
indirectly convertible or exercisable and excluding as shares owned and
outstanding all Common Shares issued by the Company after the Closing Date other
than as contemplated by this Agreement and the Securities), the Company will
ensure that upon reasonable notice, the Company and its subsidiaries will afford
to the Investor and his representatives (including employees of the Investor,
and counsel, accountants, financial and investment banking advisors and other
professionals retained by the Investor) such access during normal business hours
to its books, records, properties and personnel and to such other information as
the Investor may reasonably request.

     

    (b)           Each
party to this Agreement will hold, and will cause its respective subsidiaries
and their directors, officers, employees, agents, consultants, and advisors to
hold, in strict confidence, unless disclosure to a Governmental Entity is
necessary or appropriate in connection with any necessary regulatory approval or
unless compelled to disclose by judicial or administrative process or, in the
written opinion of its counsel, by other requirement of law or the applicable
requirements of any Governmental Entity, all nonpublic records, books,
contracts, instruments, computer data and other data and information
(collectively, “Information”) concerning the
other party hereto furnished to it by such other party or its representatives
pursuant to this Agreement (except to the extent that such information can be
shown to have been (1) previously known by such party on a nonconfidential
basis, (2) in the public domain through no fault of such party, or (3) later
lawfully acquired from other sources by the party to which it was furnished),
and neither party hereto shall release or disclose such Information to any other
person, except its auditors, attorneys, financial advisors, other consultants,
and advisors and, to the extent permitted above, to bank regulatory
authorities.

    
      
         

      

      
        -28-

        
          

        

      

      
         

      

    

    3.4           Transfer.

     

    (a)           At
Closing, the Company shall exchange each share of Common Stock presented for
such purpose by any of the Investor, Two-Forty, GRAT or CLAT, for a newly issued
share of Common Stock.  The newly issued shares of Common Stock issued
pursuant to this Section 3.4 shall not contain any restrictive legend unless
such legend appears on the shares of Common Stock issued pursuant to the
investment contemplated by this Agreement and pursuant to each Other Private
Placement.

     

    (b)           The
Company shall cooperate, to the full extent of, and in accordance with,
acceptable business practices, with any and all transfers, whether by direct or
indirect sale, assignment, award, confirmation, distribution, bequest, donation,
trust, pledge, encumbrance, hypothecation or other transfer or disposition, for
consideration or otherwise, whether voluntarily or involuntarily, by operation
of law or otherwise, by the Investor, Two-Forty, GRAT or CLAT  or any
of their respective successors and assigns of his or its Common Shares and other
shares of Common Stock such party may beneficially own prior to or subsequent to
the date hereof, or any legal or beneficial ownership therein, including voting
or economic interests therein and warrants, options or other rights to acquire
any of its Common Stock or legal beneficial ownership therein.

     

    3.5           Reasonable
Efforts.  The Company agrees to use its reasonable best efforts
to take, or cause to be taken, all actions, and to do, or cause to be done, and
to assist and cooperate with the Investor in doing, all things necessary, proper
or advisable to consummate and make effective, in the most expeditious manner
practicable, the transactions contemplated by this Agreement, the Other Private
Placements and the Public Offering, including using reasonable best efforts to
accomplish the following:  (a) the taking of all reasonable acts
necessary to cause the conditions to Closing to be satisfied; (b) the
mailing of the definitive proxy statement to the Company’s stockholders promptly
following clearance from the SEC; (c) the obtaining of all necessary
actions or nonactions, waivers, consents and approvals from Governmental
Entities and the making of all necessary registrations and filings and the
taking of all reasonable steps necessary to obtain an approval or waiver from,
or to avoid an action or proceeding by any Governmental Entity; (d) the
obtaining of all necessary consents, approvals or waivers from third parties;
(e) to cause the transactions contemplated by the Trust Preferred Securities
Repurchase Agreements to be consummated prior to the Closing Date; and
(f) the execution and delivery of any additional instruments necessary to
consummate the transactions contemplated by, and to fully carry out the purposes
of, this Agreement, the Other Private Placements and the Public
Offering.

     

    3.6           Conduct of the
Business.  Prior to the earlier of the Closing Date and the
termination of this Agreement pursuant to Section 5.1 (the “Pre-Closing Period”), the
Company shall, and shall cause each Company Subsidiary to, (i) conduct its
business in the ordinary course consistent with past practice, (ii) use
reasonable best efforts to preserve intact its current business organizations
and its rights and permits issued by Governmental Entities, keep available the
services of its current officers and key employees and preserve its
relationships with customers, suppliers, Governmental Entities and others having
business dealings with it to the end that its goodwill and ongoing businesses
shall be unimpaired and (iii) not take any action that would reasonably be
expected to materially adversely affect or materially delay the receipt of any
approvals of any Governmental Entity required to consummate the transactions
contemplated hereby or by the Other Transaction Agreements or materially
adversely affect or materially delay the consummation of the transactions
contemplated hereby or by the Other Transaction Agreements

    
      
         

      

      
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    3.7           Company
Forbearances.  During the Pre-Closing Period, the Company shall
not, and shall not permit any Company Subsidiary to:

     

    (a)           (i)
adjust, split, combine or reclassify any of its capital stock other than in
connection with the reverse stock split as described in the Company’s proxy
statement filed pursuant to Section 14(a) of the Exchange Act on October 29,
2009 affecting the Common Stock, the terms of which shall be subject to the
prior written consent of the Investor; (ii) set any record or payment dates for
the payment of any dividends or distributions on its capital stock or make,
declare or pay any dividend or make any other distribution on, or directly or
indirectly redeem, purchase or otherwise acquire, any shares of its capital
stock or any securities or obligations convertible into or exercisable or
exchangeable for any shares of its capital stock or stock appreciation rights or
grant any person any right to acquire any shares of its capital stock; or (iii)
issue or commit to issue any additional shares of capital stock (except pursuant
to the exercise of options and restricted stock unit grants outstanding as of
the date hereof and disclosed in the Company Disclosure Schedule), convertible
debt or any securities convertible into or exercisable or exchangeable for, or
any rights, warrants or options to acquire, any additional shares of capital
stock (including options) or convertible debt;

     

    (b)           
(i) increase the compensation or benefits of any employee of the Company or any
Company Subsidiary (except (x) for increases in salary or wages of employees of
the Company or any Company Subsidiary in the ordinary course of business
consistent with past practice, provided that no such
increase shall result in an annual adjustment of more than 5% of the aggregate
base salary and wages payable by the Company and its Subsidiaries during 2008
and (y) pursuant to the Company’s Benefit Plans as described on the Company’s
Disclosure Schedule; (ii) except as required by Law, grant any severance or
termination pay to any employee of the Company or any Company Subsidiary except
pursuant to the terms of any Plan in effect on the date of this Agreement and
which was made available to the Investor prior to the date of this Agreement and
disclosed in the Company’s Disclosure Schedule; (iii) loan or advance any money
or other property to any employees of the Company or any Company Subsidiary
other than in the ordinary course of business consistent with past practice;
(iv) (x) establish, adopt, enter into, amend or terminate, or (y) grant (other
than in the ordinary course of business consistent with past practice), any
waiver or consent under any Benefit Plan or any plan, agreement, program,
policy, trust, fund or other arrangement that would be a Benefit Plan if it were
in existence as of the date of this Agreement; or (v) grant any equity or
equity-based awards (including options and restricted stock units);

     

    
      
         

      

      
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    (c)           (i)  incur
any indebtedness for borrowed money, other than (x) deposit liabilities, FHLB
advances, advances from the Federal Reserve discount window, Fed funds purchases
and reverse repurchase agreements, in each case entered into in the ordinary
course of business consistent with past practice and, in the case of reverse
repurchase agreements, with a final maturity of five years or less, or (y)
indebtedness incurred in the ordinary course of business consistent with past
practice in order to finance working capital (subject in the case of this clause
(y) to an aggregate maximum amount of $5,000,000, (ii) guarantee, endorse or
assume responsibility for, the obligations of any person other than any
wholly-owned Subsidiary of the Company (other than the endorsement of checks and
other negotiable instruments in the normal process of collection) or (iii)
redeem, repurchase, prepay, defease, or cancel, or modify in any material
respect the terms of, indebtedness for borrowed money, other than (x) deposit
liabilities, FHLB advances and reverse repurchase agreements in each case in the
ordinary course of business consistent with past practice or (y) in accordance
with the terms of the applicable instrument as in effect on the date
hereof;

     

    (d)           settle
any action involving claims against the Company or any Company Subsidiary
resulting in monetary damages or other payments in excess of $100,000, agree or
consent to the issuance of any order restricting or otherwise affecting its
business or operations, or, in each case, that would cause the Company or any
Company Subsidiary to breach a representation, warranty or covenant contained in
this Agreement or would otherwise adversely affect the rights of the Investor
under this Agreement;

     

    (e)           amend
its certificate of incorporation, bylaws or similar governing documents (other
than for the purpose of effectuating the transactions contemplated by the
Transaction Documents), or enter into a plan of consolidation, merger, share
exchange, reorganization or complete or partial liquidation with any person
(other than consolidations, mergers or reorganizations solely among wholly-owned
Subsidiaries of the Company), or a letter of intent or agreement in principle
with respect thereto;

     

    (f)           make
any changes in its accounting methods or method of Tax accounting, practices or
policies, except as may be required under Law or GAAP, in each case following
consultation with the Company’s independent public accountants;

     

    (g)           except
as required by Law, make or change any Tax election, file any amended Tax
Returns, settle or compromise any material Tax liability of the Company or any
of its Subsidiaries, agree to an extension or waiver of the statute of
limitations with respect to the assessment or determination of Taxes of the
Company or any of its Subsidiaries, enter into any closing agreement with
respect to any Tax or surrender any right to claim a Tax refund; or

     

    (h)           agree
to, or make any commitment to, take any of the actions prohibited by this
Section 3.7 or that would otherwise materially adversely affect or materially
delay the consummation of the transactions contemplated hereby or by the other
Transaction Documents.

     

    3.8           Shareholder
Litigation.  The Company shall promptly inform Investor of any
claim, action, suit, arbitration, mediation, demand, hearing, investigation or
proceeding (“Shareholder
Litigation”) against the Company, any Company Subsidiary or any of the
past or present executive officers or directors of the Company or any Company
Subsidiary that is threatened or initiated by or on behalf of any stockholder of
the Company in connection with or relating to the Order, the Public Offering or
the transactions contemplated hereby or by the Transaction
Documents.  The Company shall consult with Investor and keep Investor
informed of all material filings and developments relating to any such
Shareholder Litigation.

    
      
         

      

      
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    ARTICLE
IV

     

    Additional
Agreements

     

    4.1           No Rights
Agreement.  From the date hereof through such time during which
the Investor owns at least 5% of the outstanding shares of Common Stock of the
Company, the Company shall not enter into any poison pill agreement,
stockholders’ rights plan or similar agreement that shall limit the rights of
the Investor and his Affiliates and associates to hold any shares of Common
Stock or acquire additional securities of the Company unless such poison pill
agreement, stockholders’ rights plan or similar agreement grants an exemption or
waiver to the Investor and his affiliates and associates and any group in which
the Investor may become a member of, immediately effective upon execution of
such plan or agreement that would allow the Investor and his Affiliates and
associates to acquire such additional securities of the Company.

     

    4.2           Governance
Matters.

     

    (a)           For
so long as the Investor, together with his Affiliates, owns at least 10% or more
of all of the outstanding shares of Common Stock, the Investor shall have the
right to nominate two candidates for election to each of the Board of Directors
and the board of directors of Bank of the Cascades (the “Company Bank”), an Oregon
chartered stock bank and a wholly owned subsidiary of the Company, as candidates
recommended by the Board of Directors, unless both Investor Nominees are still
serving as Directors on each board and will continue to serve after the relevant
election.  For as long as the Investor, together with his Affiliates,
owns at least 5% but less than 10% of all of the outstanding shares of Common
Stock, the Investor shall have the right to nominate one candidate for election
to each of the Board of Directors and the board of directors of the Company Bank
as a candidate recommended by the Board of Directors, unless an Investor Nominee
is still serving as a Director on each board and will continue to serve after
the relevant election.  In all cases, the Company shall cause the
nominee or designee to be elected a Director of the Board of Directors and the
board of directors of the Company Bank.  Notwithstanding anything to
the contrary in the Articles of Incorporation, bylaws, or any other policies of
the Company, the Company Bank, the Board of Directors or the board of directors
of the Company Bank, Investor Nominees shall be elected by plurality of the
votes cast by the Common Shares entitled to vote at a meeting at which a quorum
is present.  Any person nominated or designated pursuant to this
Section 4.2 shall be an “Investor
Nominee”.  Investor Nominee shall also include any director
referred to in Section 3.01 of the Shareholders Agreement.

     

    (b)           Notwithstanding
anything to the contrary contained herein, if any Investor Nominee resigns or is
unable to continue to serve as a Director of the Company or as a Director of the
Company Bank, the Investor may designate a replacement Director and the relevant
board of directors shall elect such person a Director; provided, however, that in each case,
the Investor remains entitled to nominate and designate Directors pursuant to
this Section 4.2 and such action is taken in accordance with this Section 4.2;
and provided further,
however, that the
replacement Director designated pursuant to this Section 4.2(b) must be
reasonably acceptable to the remaining members of the Board of Directors (or
nominating committee thereof), and, without the consent of the Board of
Directors (or nominating committee thereof), shall not include any individual
who is an Affiliate of a competitor of the Company.

    
      
         

      

      
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    (c)           Any
Director of the Company may be removed from the Board of Directors or from the
board of directors of the Company Bank in accordance with applicable law and the
governing documents of the Company or of the Company Bank, as applicable; provided, however, that with respect to
a Director nominated or designated pursuant to this Section 4.2, any such
removal shall require the prior written consent of the Investor unless such
removal is required by applicable law or such Director is no longer qualified to
serve as a Director pursuant to applicable SEC or regulatory requirements, or a
generally applicable policy of the Board of Directors.

     

    (d)           Any
vacancies on the Board of Directors and on the board of directors of the Company
Bank shall be filled in accordance with the applicable bylaws and, if the
vacancy is with respect to a Director originally nominated or designated by the
Investor, this Section 4.2.

     

    (e)           The
Company, the Board of Directors and the board of directors of the Company Bank
shall ensure that any Directors nominated or designated pursuant to this Section
4.2 or the Shareholders Agreement, dated December 27, 2005, by and among
the Company, the Investor and the parties listed on Schedule A thereto (the
“Shareholders
Agreement”) shall enjoy the same rights, capacities, entitlements and
compensation as any other members of the Board of Directors and the board of
directors of Company Bank, as applicable.

     

    (f)           Effective
as of the next annual meeting of shareholders following the date of this
Agreement, the number of directors on the Board of Directors shall not exceed
nine (9).

     

    (g)           
The Company and the Board of Directors shall not take any action that would
result in any amendment to the governing documents of the Company or the Company
Bank inconsistent with the provisions of this Section 4.2.

     

    (h)           For
so long as the Investor, together with his Affiliates, owns 5% or more of all of
the outstanding shares of Common Stock, the Company shall not amend its
governing documents to amend the current mandatory retirement age for the Board
of Directors.

     

    (i)           The
Company and the Board of Directors shall not take any action that would result
in a change in status of the Investor as a “Director Emeritus.” The privileges
and entitlements of the post “Director Emeritus” shall be established from time
to time by the Board of Directors but shall include recognition of the Director
Emeritus’ past contributions at annual shareholders’ meetings and sponsored
public events where they are in attendance, and an invitation to the annual
board/management dinner and other events in the Board of Director’s
discretion.  A Director Emeritus, however, will have no voting
authority, will not receive any form of compensation and will not be an attendee
at Board of Director meetings.

     

    (j)           The
Investor shall not nominate himself to serve as a Director of the Company or the
Company Bank and shall not accept any such appointment or
nomination.

    
      
         

      

      
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    4.3           Legend.

     

    (a)           The
Investor agrees that all certificates or other instruments representing the
Securities subject to this Agreement will bear a legend substantially to the
following effect:

     

    “THE
SECURITIES REPRESENTED BY THIS INSTRUMENT HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, OR SECURITIES LAWS OF ANY STATE AND MAY NOT
BE TRANSFERRED, SOLD OR OTHERWISE DISPOSED OF EXCEPT WHILE A REGISTRATION
STATEMENT RELATING THERETO IS IN EFFECT UNDER SUCH ACT AND APPLICABLE STATE
SECURITIES LAWS OR PURSUANT TO AN EXEMPTION FROM REGISTRATION UNDER SUCH ACT OR
SUCH LAWS.”

     

    (b)           Upon
request of the Investor, upon receipt by the Company of an opinion of counsel
reasonably satisfactory to the Company to the effect that such legend is no
longer required under the Securities Act or applicable state laws, as the case
may be, the Company shall promptly cause the legend to be removed from any
certificate for any Securities.  The Investor acknowledges that the
Securities have not been registered under the Securities Act or under any state
securities laws and agrees that he will not sell or otherwise dispose of any of
the Securities, except in compliance with the registration requirements or
exemption provisions of the Securities Act and any other applicable securities
laws.

     

    4.4           [Reserved]

     

    4.5           Certain
Transactions.  The
Company will not merge or consolidate into, or sell, transfer or lease all or
substantially all of its property or assets to, any other party unless the
successor, transferee or lessee party, as the case may be (if not the Company),
expressly assumes the due and punctual performance and observance of each and
every covenant and condition of this Agreement to be performed and observed by
the Company.

     

    4.6           Indemnity.

     

    (a)           The
Company agrees to indemnify and hold harmless the Investor and his Affiliates
and each of their respective officers, directors, partners, employees and
agents, to the fullest extent lawful, from and against any and all actions,
suits, claims, proceedings, costs, losses, liabilities, damages, expenses
(including attorneys’ fees and disbursements), amounts paid in settlement and
other costs (collectively, “Losses”) arising out of or
resulting from (1) any inaccuracy in or breach of the Company’s
representations or warranties in Section 2.2 of this Agreement,
(2) the Company’s breach of agreements or covenants made by the Company in
this Agreement or (3) any Losses arising out of or resulting from any
legal, administrative or other proceedings instituted by any Governmental
Entity, stockholder of the Company or any other person (other than the Investor
and his Affiliates and the Company and the Company Subsidiaries) arising out of
the transactions contemplated by this Agreement and the terms of the Securities
(other than any Losses attributable to the acts, errors or omissions on the part
of the Investor, but not including the transactions contemplated
hereby).

    
      
         

      

      
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    (b)           The
Investor agrees to indemnify and hold harmless each of the Company and its
Affiliates and each of their respective officers, directors, partners, employees
and agents, to the fullest extent lawful, from and against any and all Losses
arising out of or resulting from (1) any inaccuracy in or breach of the
Investor’s representations or warranties in this Agreement or (2) the
Investor’s breach of agreements or covenants made by the Investor in this
Agreement.

     

    (c)           A
party entitled to indemnification hereunder (each, an “Indemnified Party”) shall
give written notice to the party indemnifying it (the “Indemnifying Party”) of any
claim with respect to which it seeks indemnification promptly after the
discovery by such Indemnified Party of any matters giving rise to a claim for
indemnification; provided that the failure of
any Indemnified Party to give notice as provided herein shall not relieve the
Indemnifying Party of its obligations under this Section 4.6 unless and to the
extent that the Indemnifying Party shall have been actually prejudiced by the
failure of such Indemnified Party to so notify such party.  Such
notice shall describe in reasonable detail such claim.  In case any
such action, suit, claim or proceeding is brought against an Indemnified Party,
the Indemnified Party shall be entitled to hire, at the cost and expense of the
Indemnifying Party counsel and conduct the defense thereof; provided, however, that the
Indemnifying Party shall only be liable for the legal fees and expenses of one
law firm for all Indemnified Parties, taken together with regard to any single
action or group of related actions, upon agreement by the Indemnified Parties
and the Indemnifying Parties.  If the Indemnifying Party assumes the
defense of any claim, all Indemnified Parties shall thereafter deliver to the
Indemnifying Party copies of all notices and documents (including court papers)
received by the Indemnified Party relating to the claim, and any Indemnified
Party shall cooperate in the defense or prosecution of such
claim.  Such cooperation shall include the retention and (upon the
Indemnifying Party’s request) the provision to the Indemnifying Party of records
and information that are reasonably relevant to such claim, and making employees
available on a mutually convenient basis to provide additional information and
explanation of any material provided hereunder.  The Indemnifying
Party shall not be liable for any settlement of any action, suit, claim or
proceeding effected without its written consent; provided, however, that the
Indemnifying Party shall not unreasonably withhold, delay or condition its
consent.  The Indemnifying Party further agrees that it will not,
without the Indemnified Party’s prior written consent (which shall not be
unreasonably withheld or delayed), settle or compromise any claim or consent to
entry of any judgment in respect thereof in any pending or threatened action,
suit, claim or proceeding in respect of which indemnification has been sought
hereunder unless such settlement or compromise includes an unconditional release
of such Indemnified Party from all liability arising out of such action, suit,
claim or proceeding.

     

    (d)           For
purposes of the indemnity contained in Sections 4.6(a)(1) and 4.6(b)(1),
all qualifications and limitations set forth in the parties’ representations and
warranties as to “materiality,” “Material Adverse Effect” and words of similar
import, shall be disregarded in determining whether there shall have been any
inaccuracy in or breach of any representations and warranties in this
Agreement.

    
      
         

      

      
        -35-

        
          

        

      

      
         

      

    

    (e)           The
Company shall not be required to indemnify the Indemnified Parties pursuant to
Section 4.6(a)(1), disregarding all qualifications or limitations set forth in
such representation and warranties as to “materiality,” “Material Adverse
Effect” and words of similar import, (1) with respect to any claim for
indemnification if the amount of Losses with respect to such claim are less than
$50,000 (any claim involving Losses less than such amount being referred to as a
“De Minimis Claim”) and
(2) unless and until the aggregate amount of all Losses incurred with respect to
all claims (other than De Minimis Claims) pursuant to Section 4.6(a)(1) exceed
$250,000 (the “Threshold
Amount”), in which event the Company shall be responsible for the entire
amount of such Losses.  No Investor shall be required to indemnify the
Indemnified Parties pursuant to Section 4.6(b)(1), disregarding all
qualifications or limitations set forth in such representation and warranties as
to “materiality,” “Material Adverse Effect” and words of similar import, (1)
with respect to any De Minimis Claim and (2) unless and until the aggregate
amount of all Losses incurred with respect to all claims (other than De Minimis
Claims) pursuant to Section 4.6(b)(1) exceed the Threshold Amount, in which
event such Investor shall be responsible for the entire amount of such
Losses.

     

    (f)           The
obligations of the Indemnifying Party under this Section 4.6 shall survive the
transfer or redemption of the Common Stock issued pursuant to this Agreement, or
the Closing or termination of the Bolger Transaction Document; provided that in the event of
any transfer of the Common Stock to a third party that is not an Affiliate of
the transferor, the Indemnifying Party shall have no obligations under this
Section 4.6 to
such transferee.  The indemnity provided for in this Section 4.6 shall be the sole
and exclusive monetary remedy of Indemnified Parties after the Closing for any
inaccuracy of any of the representations and warranties contained in
Sections 2.2 and Sections 2.3 of this Agreement or any other breach of
any covenant or agreement contained in this Agreement; provided that nothing herein
shall limit in any way any such parties’ remedies in respect of fraud,
intentional misrepresentation or omission or intentional misconduct by the other
party in connection with the transactions contemplated hereby.  No
party to this Agreement (or any of its Affiliates) shall, in any event, be
liable or otherwise responsible to any other party (or any of its Affiliates)
for any consequential or punitive damages of such other party (or any of its
Affiliates) arising out of or relating to this Agreement or the performance or
breach hereof.  The indemnification rights contained in this
Section 4.6 are
not limited or deemed waived by any investigation or knowledge by the
Indemnified Party prior to or after the date hereof.

     

    (g)           Any
indemnification payments pursuant to this Section 4.6 shall be treated as
an adjustment to the Purchase Price for the Securities for U.S. federal income
and applicable state and local Tax purposes, unless a different treatment is
required by applicable law.

     

    4.7           Registration
Rights.

     

    (a)           Registration.

     

    (1)           Subject
to the terms and conditions of this Agreement, the Company covenants and agrees
that as promptly as practicable after the Closing Date (and in any event no
later than the date that is 30 days after the Closing Date (the “Registration Deadline”)), the
Company shall have prepared and filed with the SEC a Shelf Registration
Statement (defined below) covering all Registrable Securities (or otherwise
designate an existing Shelf Registration Statement filed with the SEC to cover
the Registrable Securities), and, to the extent the Shelf Registration Statement
has not theretofore been declared effective or is not automatically effective
upon such filing, the Company shall use reasonable best efforts to cause such
Shelf Registration Statement to be declared or become effective not later than
the Registration Deadline and to keep such Shelf Registration Statement
continuously effective and in compliance with the Securities Act and usable for
resale of such Registrable Securities for a period from the date of its initial
effectiveness until such time as there are no Registrable Securities remaining
(including by refiling such Shelf Registration Statement (or a new Shelf
Registration Statement) if the initial Shelf Registration Statement
expires).  If the Company is a well-known seasoned issuer (as defined
in Rule 405 under the Securities Act) at the time of filing of the Shelf
Registration Statement with the SEC, such Shelf Registration Statement shall be
designated by the Company as an automatic Shelf Registration
Statement.

    
      
         

      

      
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    (2)           Any
registration pursuant to this Section 4.7(a) shall be
effected by means of a shelf registration under the Securities Act (a “Shelf Registration
Statement”) in accordance with the methods and distribution set forth in
the Shelf Registration Statement and Rule 415.  If the Investor or any
other Holder of Registrable Securities to whom the registration rights conferred
by this Agreement have been transferred in compliance with this Agreement
intends to distribute any Registrable Securities by means of an underwritten
offering it shall promptly so advise the Company and the Company shall take all
reasonable steps to facilitate such distribution, including the actions required
pursuant to Section 4.7(c); provided, that the Company
shall not be required to facilitate an underwritten offering of Registrable
Securities unless the expected gross proceeds from such offering exceed
$1,000,000.  The lead underwriters in any such distribution shall be
selected by the holders of a majority of the Registrable Securities to be
distributed and be reasonably acceptable to the Company.

     

    (3)           The
Company shall not be required to effect a registration (including a resale of
Registrable Securities from an effective Shelf Registration Statement) or an
underwritten offering pursuant to this Section 4.7(a):  (i)
with respect to securities that are not Registrable Securities; (ii) during any
Scheduled Black-out Period; or (iii) if the Company has notified the Investor
and all other Holders that in the good faith judgment of the Board of Directors,
it would be materially detrimental to the Company or its security holders for
such registration or underwritten offering to be effected at such time, in which
event the Company shall have the right to defer such registration or
underwritten offering for a period of not more than 30 days after receipt of the
request of the Investor or any other Holder; provided that such right to
delay a registration or underwritten offering shall be exercised by the Company
(A) only if the Company has generally exercised (or is concurrently exercising)
similar black-out rights against holders of similar securities that have
registration rights and (B) not more than twice in any 12-month period and not
more than 60 days in the aggregate in any 12-month period.

    
      
         

      

      
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    (4)           After
the Closing Date, whenever the Company proposes to register any of its equity
securities, other than a registration pursuant to Section 4.7(a)(1) or a Special
Registration, and the registration form to be filed may be used for the
registration or qualification for distribution of Registrable Securities, the
Company will give prompt written notice to the Investor and all other Holders of
its intention to effect such a registration (but in no event less than 15 days
prior to the anticipated filing date) and (subject to clause (6) below) will
include in such registration all Registrable Securities with respect to which
the Company has received written requests for inclusion therein within ten
business days after the date of the Company’s notice (a “Piggyback
Registration”).  Any such person that has made such a written
request may withdraw its Registrable Securities from such Piggyback Registration
by giving written notice to the Company and the managing underwriter, if any, on
or before the fifth day prior to the planned effective date of such Piggyback
Registration. The Company may terminate or withdraw any registration under this
Section 4.7(a)(4)
prior to the effectiveness of such registration, whether or not the Investor or
any other Holders have elected to include Registrable Securities in such
registration.  “Special Registration” means
the registration of (i) equity securities and/or options or other rights in
respect thereof solely registered on Form S-4 or Form S-8 (or successor form) or
(ii) shares of equity securities and/or options or other rights in respect
thereof to be offered to directors, members of management, employees,
consultants, customers, lenders or vendors of the Company or Company
Subsidiaries or in connection with dividend reinvestment plans.

     

    (5)           If
the registration referred to in Section 4.7(a)(4) is proposed
to be underwritten, the Company will so advise the Investor and all other
Holders as a part of the written notice given pursuant to Section 4.7(a)(4).  In
such event, the right of the Investor and all other Holders to registration
pursuant to this Section 4.7(a) will be
conditioned upon such persons’ participation in such underwriting and the
inclusion of such persons’ Registrable Securities in the underwriting, and each
such person will (together with the Company and the other persons distributing
their securities through such underwriting) enter into an underwriting agreement
in customary form with the underwriter or underwriters selected for such
underwriting by the Company.  If any participating person disapproves
of the terms of the underwriting, such person may elect to withdraw therefrom by
written notice to the Company, the managing underwriter and the
Investor.

     

    (6)           The
Company represents and warrants that it has not granted to any holder of its
securities and agrees that it shall not grant “piggyback” registration rights to
one or more third parties to include their securities in the Shelf Registration
Statement or in an underwritten offering under the Shelf Registration Statement
pursuant to Section 4.7(a)(2).  If
a Piggyback Registration under Section 4.7(a)(4) relates to an
underwritten primary offering on behalf of the Company, and in either case the
managing underwriters advise the Company that in their reasonable opinion the
number of securities requested to be included in such offering exceeds the
number which can be sold without adversely affecting the marketability of such
offering (including an adverse effect on the per share offering price), the
Company will include in such registration or prospectus only such number of
securities that in the reasonable opinion of such underwriters can be sold
without adversely affecting the marketability of the offering (including an
adverse effect on the per share offering price), which securities will be so
included in the following order of priority: (i) first, in the case of a
Piggyback Registration under Section 4.7(a)(4), the
securities the Company proposes to sell, (ii) second, Registrable Securities of
the Investor and all other Holders who have requested registration of
Registrable Securities pursuant to Section 4.7(a)(2) or 4.7(a)(4), as
applicable, pro rata on
the basis of the aggregate number of such securities or shares owned by each
such person and (iii) third, any other securities of the Company that have been
requested to be so included, subject to the terms of this
Agreement.

    
      
         

      

      
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    (b)           Expenses of
Registration.  All Registration Expenses incurred in connection
with any registration, qualification or compliance hereunder shall be borne by
the Company.  The Company shall bear its internal expenses (including,
without limitation, all salaries and expenses of their officers and employees
performing legal, accounting or other duties) and expenses of any person,
including special experts, retained by the Company.  The Company shall
also reimburse the Investor for the reasonable fees and disbursements of legal
counsel to the Investor in an amount not to exceed $25,000 per
registration.  All Selling Expenses incurred in connection with any
registrations hereunder shall be borne by the holders of the securities so
registered pro rata on
the basis of the aggregate offering or sale price of the securities so
registered.

     

    (c)           Obligations of the
Company.  The Company shall use its reasonable best efforts for
so long as there are Registrable Securities outstanding, to take such actions as
are under its control to remain a well-known seasoned issuer (as defined in Rule
405 under the Securities Act) if it becomes eligible for such status in the
future (and not become an ineligible issuer (as defined in Rule 405 under the
Securities Act)).  In addition, whenever required to effect the
registration of any Registrable Securities or facilitate the distribution of
Registrable Securities pursuant to an effective Shelf Registration Statement,
the Company shall, as expeditiously as reasonably practicable:

     

    (1)           Prepare
and file with the SEC a prospectus supplement with respect to a proposed
offering of Registrable Securities pursuant to an effective registration
statement, subject to this Section 4.7(c), and keep such
registration statement effective or such prospectus supplement current until the
securities described therein are no longer Registrable Securities.

     

    (2)           Prepare
and file with the SEC such amendments and supplements to the applicable
registration statement and the prospectus or prospectus supplement used in
connection with such registration statement as may be necessary to comply with
the provisions of the Securities Act with respect to the disposition of all
securities covered by such registration statement.

     

    (3)           Furnish
to the Holders and any underwriters such number of copies of the applicable
registration statement and each such amendment and supplement thereto (including
in each case all exhibits) and of a prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents as they may reasonably request in order to facilitate the
disposition of Registrable Securities owned or to be distributed by
them.

     

    (4)           Use
its reasonable best efforts to register and qualify the securities covered by
such registration statement under such other securities or blue sky laws of such
jurisdictions as shall be reasonably requested by the Holders or any managing
underwriter(s), to keep such registration or qualification in effect for so long
as such registration statement remains in effect, and to take any other action
which may be reasonably necessary to enable such seller to consummate the
disposition in such jurisdictions of the securities owned by such Holder; provided that the Company
shall not be required in connection therewith or as a condition thereto to
qualify to do business or to file a general consent to service of process in any
such states or jurisdictions.

    
      
         

      

      
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    (5)           Notify
each Holder of Registrable Securities at any time when a prospectus relating
thereto is required to be delivered under the Securities Act of the happening of
any event as a result of which the applicable prospectus, as then in effect,
includes an untrue statement of a material fact or omits to state a material
fact required to be stated therein or necessary to make the statements therein
not misleading in light of the circumstances then existing.

     

    (6)           Give
written notice to the Holders:

     

    (i)           when
any registration statement filed pursuant to Section 4.7(a) or any amendment
thereto has been filed with the SEC (except for any amendment effected by the
filing of a document with the SEC pursuant to the Exchange Act) and when such
registration statement or any post-effective amendment thereto has become
effective;

     

    (ii)           of
any request by the SEC for amendments or supplements to any registration
statement or the prospectus included therein or for additional
information;

     

    (iii)           of
the issuance by the SEC of any stop order suspending the effectiveness of any
registration statement or the initiation of any proceedings for that
purpose;

     

    (iv)           of
the receipt by the Company or its legal counsel of any notification with respect
to the suspension of the qualification of the Common Stock for sale in any
jurisdiction or the initiation or threatening of any proceeding for such
purpose;

     

    (v)           of
the happening of any event that requires the Company to make changes in any
effective registration statement or the prospectus related to the registration
statement in order to make the statements therein not misleading (which notice
shall be accompanied by an instruction to suspend the use of the prospectus
until the requisite changes have been made); and

     

    (vi)           if
at any time the representations and warranties of the Company contained in any
underwriting agreement contemplated by Section 4.7(c)(10) cease to be
true and correct.

     

    (7)           Use
its reasonable best efforts to prevent the issuance or obtain the withdrawal of
any order suspending the effectiveness of any registration statement referred to
in Section 4.7(c)(6)(iii) at the
earliest practicable time.

    
      
         

      

      
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    (8)           Upon
the occurrence of any event contemplated by Section 4.7(c)(5) or
4.7(c)(6)(v), promptly prepare a post-effective amendment to such registration
statement or a supplement to the related prospectus or file any other required
document so that, as thereafter delivered to the Holders and any underwriters,
the prospectus will not contain an untrue statement of a material fact or omit
to state any material fact necessary to make the statements therein, in light of
the circumstances under which they were made, not misleading.  If the
Company notifies the Holders in accordance with Section 4.7(c)(6)(v) to suspend
the use of the prospectus until the requisite changes to the prospectus have
been made, then the Holders and any underwriters shall suspend use of such
prospectus and use their reasonable best efforts to return to the Company all
copies of such prospectus (at the Company’s expense) other than permanent file
copies then in such Holder’s or underwriter’s possession.  The total
number of days that any such suspension may be in effect in any 180-day period
shall not exceed 30 days.

     

    (9)           Use
best efforts to procure the cooperation of the Company’s transfer agent in
settling any offering or sale of Registrable Securities, including with respect
to the transfer of physical stock certificates into book-entry form in
accordance with any procedures reasonably requested by the Holders or any
managing underwriter(s).

     

    (10)           If
an underwritten offering is requested pursuant to Section 4.7(a)(2), enter into
an underwriting agreement in customary form, scope and substance and take all
such other actions reasonably requested by the Holders of a majority of the
Registrable Securities being sold in connection therewith or by the managing
underwriter(s), if any, to expedite or facilitate the underwritten disposition
of such Registrable Securities, and in connection therewith in any underwritten
offering (including making members of management and executives of the Company
available to participate in “road shows,” similar sales events and other
marketing activities), (i) make such representations and warranties to the
Holders that are selling stockholders and the managing underwriter(s), if any,
with respect to the business of the Company and its subsidiaries, and the Shelf
Registration Statement, prospectus and documents, if any, incorporated or deemed
to be incorporated by reference therein, in each case, in customary form,
substance and scope, and, if true, confirm the same if and when requested, (ii)
furnish the underwriters with opinions of counsel to the Company, addressed to
the managing underwriter(s), if any, covering the matters customarily covered in
such opinions requested in underwritten offerings, (iii) obtain “comfort”
letters from the independent certified public accountants of the Company (and,
if necessary, any other independent certified public accountants of any business
acquired by the Company for which financial statements and financial data are
included in the Shelf Registration Statement) who have certified the financial
statements included in such Shelf Registration Statement, addressed to each of
the managing underwriter(s), if any, such letters to be in customary form and
covering matters of the type customarily covered in “comfort” letters, (iv) if
an underwriting agreement is entered into, the same shall contain
indemnification provisions and procedures customary in underwritten offerings,
and (v) deliver such documents and certificates as may be reasonably requested
by the Holders of a majority of the Registrable Securities being sold in
connection therewith, their counsel and the managing underwriter(s), if any, to
evidence the continued validity of the representations and warranties made
pursuant to clause (i) above and to evidence compliance with any customary
conditions contained in the underwriting agreement or other agreement entered
into by the Company.

    
      
         

      

      
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    (11)           Make
available for inspection by a representative of Holders that are selling
stockholders, the managing underwriter(s), if any, and any attorneys or
accountants retained by such Holders or managing underwriter(s), at the offices
where normally kept, during reasonable business hours, financial and other
records, pertinent corporate documents and properties of the Company, and cause
the officers, directors and employees of the Company to supply all information
in each case reasonably requested (and of the type customarily provided in
connection with due diligence conducted in connection with a registered public
offering of securities) by any such representative, managing underwriter(s),
attorney or accountant in connection with such Shelf Registration
Statement.

     

    (12)           Cause
all such Registrable Securities to be listed on each securities exchange on
which similar securities issued by the Company are then listed or, if no similar
securities issued by the Company are then listed on any securities exchange, use
its reasonable best efforts to cause all such Registrable Securities to be
listed on the New York Stock Exchange or NASDAQ, as determined by the
Company.

     

    (13)           If
requested by Holders of a majority of the Registrable Securities being
registered and/or sold in connection therewith, or the managing underwriter(s),
if any, promptly include in a prospectus supplement or amendment such
information as the Holders of a majority of the Registrable Securities being
registered and/or sold in connection therewith or managing underwriter(s), if
any, may reasonably request in order to permit the intended method of
distribution of such securities and make all required filings of such prospectus
supplement or such amendment as soon as practicable after the Company has
received such request.

     

    (14)           Timely
provide to its security holders earning statements satisfying the provisions of
Section 11(a) of
the Securities Act and Rule 158 thereunder.

     

    (d)           Suspension of
Sales.  During any Scheduled Black-out Period and upon receipt
of written notice from the Company that a registration statement, prospectus or
prospectus supplement contains or may contain an untrue statement of a material
fact or omits or may omit to state a material fact required to be stated therein
or necessary to make the statements therein not misleading or that circumstances
exist that make inadvisable use of such registration statement, prospectus or
prospectus supplement, each Holder of Registrable Securities shall forthwith
discontinue disposition of Registrable Securities until termination of such
Scheduled Black-out Period or until such Holder has received copies of a
supplemented or amended prospectus or prospectus supplement, or until such
Holder is advised in writing by the Company that the use of the
prospectus.  The total number of days that any such suspension may be
in effect in any 180-day period shall not exceed 30 days.

     

    (e)           Termination of Registration
Rights.  A Holder’s registration rights as to any securities
held by such Holder (and its Affiliates, partners, members and former members)
shall not be available unless such securities are Registrable
Securities.

    
      
         

      

      
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    (f)           Free Writing
Prospectuses.  The Investor shall not use any free writing
prospectus (as defined in Rule 405) in connection with the sale of Registrable
Securities without the prior written consent of the Company.

     

    (g)           Indemnification.

     

    (1)           The
Company agrees to indemnify each Holder and, if a Holder is a person other than
an individual, such Holder’s officers, directors, employees, agents,
representatives and Affiliates, and each person, if any, that controls a Holder
within the meaning of the Securities Act (each, an “Indemnitee”), against any and
all Losses, joint or several, arising out of or based upon any untrue statement
or alleged untrue statement of material fact contained in any registration
statement, including any preliminary prospectus or final prospectus contained
therein or any amendments or supplements thereto or any documents incorporated
therein by reference or contained in any free writing prospectus (as such term
is defined in Rule 405) prepared by the Company or authorized by it in writing
for use by such Holder (or any amendment or supplement thereto); or any omission
to state therein a material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading; provided, that the Company
shall not be liable to such Indemnitee in any such case to the extent that any
such loss, claim, damage, liability (or action or proceeding in respect thereof)
or expense arises out of or is based upon (i) an untrue statement or omission
made in such registration statement, including any such preliminary prospectus
or final prospectus contained therein or any such amendments or supplements
thereto or contained in any free writing prospectus (as such term is defined in
Rule 405) prepared by the Company or authorized by it in writing for use by such
Holder (or any amendment or supplement thereto), in reliance upon and in
conformity with information regarding such Indemnitee or its plan of
distribution or ownership interests which was furnished in writing to the
Company by such Indemnitee for use in connection with such registration
statement, including any such preliminary prospectus or final prospectus
contained therein or any such amendments or supplements thereto, or
(ii)  offers or sales effected by or on behalf such Indemnitee “by
means of” (as defined in Rule 159A) a “free writing prospectus” (as defined in
Rule 405) that was not authorized in writing by the Company.

     

    (2)           If
the indemnification provided for in Section 4.7(g)(1) is
unavailable to an Indemnitee with respect to any Losses or is insufficient to
hold the Indemnitee harmless as contemplated therein, then the Company, in lieu
of indemnifying such Indemnitee, shall contribute to the amount paid or payable
by such Indemnitee as a result of such Losses in such proportion as is
appropriate to reflect the relative fault of the Indemnitee, on the one hand,
and the Company, on the other hand, in connection with the statements or
omissions which resulted in such Losses as well as any other relevant equitable
considerations.  The relative fault of the Company, on the one hand,
and of the Indemnitee, on the other hand, shall be determined by reference to,
among other factors, whether the untrue statement of a material fact or omission
to state a material fact relates to information supplied by the Company or by
the Indemnitee and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission;
the Company and each Holder agree that it would not be just and equitable if
contribution pursuant to this Section 4.7(g)(2) were
determined by pro rata
allocation or by any other method of allocation that does not take account of
the equitable considerations referred to in Section 4.7(g)(1).  No
Indemnitee guilty of fraudulent misrepresentation (within the meaning of
Section 11(f) of
the Securities Act) shall be entitled to contribution from the Company if the
Company was not guilty of such fraudulent misrepresentation.

    
      
         

      

      
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    (h)           Assignment of Registration
Rights.  The rights of the Investor to registration of
Registrable Securities pursuant to Section 4.7 may be assigned by
the Investor to a transferee or assignee of Registrable Securities to which
there is transferred to such transferee no less than $1,000,000 in Registrable
Securities; provided,
however, that the
transferor shall, within ten days after such transfer, furnish to the Company
written notice of the name and address of such transferee or assignee and the
number and type of Registrable Securities that are being assigned.

     

    (i)           Holdback.  With
respect to any underwritten offering of Registrable Securities by the Investor
or other Holders pursuant to Section 4.7, the Company agrees
not to effect (other than pursuant to such registration or pursuant to a Special
Registration) any public sale or distribution, or to file any Shelf Registration
Statement (other than such registration or a Special Registration) covering any
of its equity securities, or any securities convertible into or exchangeable or
exercisable for such securities, during the period not to exceed 30 days prior
and 90 days following the effective date of such offering or such longer period
up to 180 days as may be requested by the managing underwriter.  The
Company also agrees to cause each of its directors and senior executive officers
to execute and deliver customary lockup agreements in such form and for such
time period up to 180 days as may be requested by the managing
underwriter.

     

    (j)           Rule 144; Rule 144A
Reporting.  With a view to making available to the Investor and
Holders the benefits of certain rules and regulations of the SEC which may
permit the sale of the Registrable Securities to the public without
registration, the Company agrees to:

     

    (1)           make
and keep public information available, as those terms are understood and defined
in Rule 144(c)(1) or any similar or analogous rule promulgated under the
Securities Act, at all times after the effective date of this
Agreement;

     

    (2)           file
with the SEC, in a timely manner, all reports and other documents required of
the Company under the Exchange Act, and if at any time the Company is not
required to file such reports, make available, upon the request of any Holder,
such information necessary to permit sales pursuant to Rule 144A (including the
information required by Rule 144A(d)(4) and the Securities Act);

     

    (3)           so
long as the Investor or a Holder owns any Registrable Securities, furnish to the
Investor or such Holder forthwith upon request: a written statement by the
Company as to its compliance with the reporting requirements of Rule 144 under
the Securities Act, and of the Exchange Act; a copy of the most recent annual or
quarterly report of the Company; and such other reports and documents as the
Investor or Holder may reasonably request in availing itself of any rule or
regulation of the SEC allowing it to sell any such securities without
registration; and

    
      
         

      

      
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    (4)           take
such further action as any Holder may reasonably request, all to the extent
required from time to time to enable such Holder to sell Registrable Securities
without registration under the Securities Act.

     

    (k)           As
used in this Section 4.7, the following
terms shall have the following respective meanings:

     

    (1)           “Holder” means the Investor,
any other holder of Registrable Securities to whom the registration rights
conferred by this Agreement have been transferred in compliance with
Section 4.7(h)
hereof, Two-Forty, GRAT and CLAT.

     

    (2)           “Holders’ Counsel” means one
counsel for the selling Holders chosen by Holders holding a majority interest in
the Registrable Securities being registered.

     

    (3)           “Register,” “registered,” and “registration” shall refer to
a registration effected by preparing and (a) filing a registration statement in
compliance with the Securities Act and applicable rules and regulations
thereunder, and the declaration or ordering of effectiveness of such
registration statement or (b) filing a prospectus and/or prospectus supplement
in respect of an appropriate effective registration statement on Form S-3 or
other form approved by the holders of a majority of Registrable Securities
available for sales of securities pursuant to Rule 415 under the Securities
Act.

     

    (4)           “Registrable Securities” means
(A) all Common Stock held by the Investor from time to time and
(B) any equity securities issued or issuable directly or indirectly with
respect to the securities referred to in the foregoing clause (A) by way of
conversion, exercise or exchange thereof or stock dividend or stock split or in
connection with a combination of shares, recapitalization, reclassification,
merger, amalgamation, arrangement, consolidation or other reorganization, provided that, once issued,
such securities will not be Registrable Securities when (i) they are sold
pursuant to an effective registration statement under the Securities Act,
(ii) they shall have ceased to be outstanding; (iii) with respect to any
transferee of the Common Stock who is not an Affiliate of the Investor or a
Holder, they shall be freely transferable pursuant to Rule 144 under the
Securities Act in the hands of such transferee without any volume, holding
period or other limitations; or (iv) they have been sold in a private
transaction in which the transferor’s rights under this Agreement are not
assigned to the transferee of the securities.  No Registrable
Securities may be registered under more than one registration statement at one
time.

    
      
         

      

      
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    (5)           “Registration Expenses” means
all expenses incurred by the Company in effecting any registration pursuant to
this Agreement (whether or not any registration or prospectus becomes effective
or final) or otherwise complying with its obligations under this Section 4.7, including, without
limitation, all registration, filing and listing fees (including filings made
with the Financial Industry Regulatory Authority), printing expenses (including
printing of prospectuses and certificates for the Securities), the Company’s
expenses for messenger and delivery services and telephone, fees and
disbursements of counsel for the Company, blue sky fees and expenses, expenses
incurred by the Company in connection with any “road show,” the fees and
disbursements of Holders’ Counsel, and expenses of the Company’s independent
accountants in connection with any regular or special reviews or audits incident
to or required by any such registration, but shall not include Selling Expenses
and the compensation of regular employees of the Company, which shall be paid in
any event by the Company.

     

    (6)           “Rule 144,” “Rule 144A,” “Rule 158,” “Rule 159A,” “Rule 405” and “Rule 415” mean, in each case,
such rule promulgated under the Securities Act (or any successor provision), as
the same shall be amended from time to time.

     

    (7)           “Scheduled Black-out Period”
means the period from and including the last day of a fiscal quarter of the
Company to and including the business day after the day on which the Company
publicly releases its earnings for such fiscal quarter.

     

    (8)           “Selling Expenses” means all
discounts, selling commissions and stock transfer taxes applicable to the sale
of Registrable Securities and fees and disbursements of counsel for any Holder
(other than the fees and disbursements of Holders’ Counsel included in
Registration Expenses), other than $25,000 of fees and disbursements of Holders’
Counsel, which shall be reimbursed by the Company pursuant to Section
4.7(b).

     

    (l)           At
any time, any holder of Securities (including any Holder) may elect to forfeit
its rights set forth in this Section 4.7 from that date
forward; provided, that
a Holder forfeiting such rights shall nonetheless be entitled to participate
under Sections 4.7(a)(4)-(6) in any Pending Underwritten Offering to the
same extent that such Holder would have been entitled to if the holder had not
withdrawn; and provided, further, that no such
forfeiture shall terminate a Holder’s rights or obligations under Section 4.7(f) with respect to
any prior registration or Pending Underwritten Offering.  “Pending Underwritten
Offering” means, with respect to any Holder forfeiting its rights
pursuant to this Section 4.7(l), any
underwritten offering of Registrable Securities in which such Holder has advised
the Company of its intent to register its Registrable Securities either pursuant
to Section 4.7(a)(2) or 4.7(a)(4)
prior to the date of such Holder’s forfeiture.

     

    4.8           Termination of Certain
Sections of the Shareholders Agreement.  The
following sections of the Shareholders Agreement are hereby terminated as of the
Closing: Section 2; Section 3; Section 4; and Section 5.

    
      
         

      

      
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    4.9           Market Stand-off Provision.  The
Investor hereby agrees that, until the 90th day
after the Closing (or such lesser time as permitted by the underwriters), the
Investor shall not, without the prior written consent of Keefe, Bruyette &
Woods, Inc. (“Keefe Bruyette”) and the Company, directly or indirectly, (i)
offer, pledge, sell, contract to sell, sell any option or contract to purchase,
purchase any option or contract to sell, grant any option, right or warrant for
the sale of, or otherwise dispose of or transfer any shares of Common Stock or
any securities convertible into or exchangeable or exercisable for Common Stock,
whether now owned, acquired pursuant to this Agreement or hereafter acquired by
the undersigned or with respect to which the undersigned has, acquires pursuant
to this Agreement or hereafter acquires the power of disposition, or file, or
request that the Company file, any registration statement under the Securities
Act, as amended, with respect to any of the foregoing, or (ii) enter into any
swap or any other agreement or any transaction that transfers, in whole or in
part, directly or indirectly, the economic consequence of ownership of Common
Stock, whether any such swap or transaction is to be settled by delivery of
Common Stock or other securities, in cash or otherwise.  In the event
that either (i) during the period that begins on the date that is 15 calendar
days plus three (3) business days before the last day of the 90 day restricted
period and ends on the last day of the 90 day restricted period, the Company
issues an earnings release or material news or a material event relating to the
Company occurs, or (ii) prior to the expiration of the 90 day restricted period,
the Company announces that it will release earnings results during the 16 day
period beginning on the last day of the 90 day restricted period, the
restrictions set forth herein will continue to apply until the expiration of the
date that is 15 calendar days plus three (3) business days after the date on
which the earnings release is issued or the material news or event related to
the Company occurs.  The Company shall promptly notify Keefe Bruyette
of any earnings releases, news or events that may give rise to an extension of
the initial restricted period.  For the avoidance of doubt and
notwithstanding Section 6.12 of this Agreement, Keefe Bruyette shall be an
express third party beneficiary of this Section 4.9.  In the event the
restrictions in this Section 4.9 are waived for any investor in the Other
Private Placements, such restrictions shall be deemed automatically waived for
the Investor.

     

    Notwithstanding
the foregoing, the Investor may transfer Common Stock (i) as a bona fide gift or gifts,
provided that the donee or donees thereof agree to be bound in writing by the
restrictions set forth in this Section 4.9, (ii) to any trust for the direct or
indirect benefit of the Investor or the immediate family of the Investor,
provided that the trustee of the trust agrees to be bound in writing by the
restrictions set forth in this Section 4.9, and provided further that any
such transfer shall not involve a disposition for value, (iii) to any Affiliate
of the Investor, provided that such Affiliate agrees to be bound in writing by
the restrictions set forth in this Section 4.9, (iii) to charitable
organizations exempt from taxation under Section 501(c)(3) of the Internal
revenue Code of 1986; provided that such charitable
organizations agree to be bound in writing by the restrictions set forth in this
Section 4.9 or (iv) by way of testate or intestate succession or by operation of
law.  For purposes of this Section, “immediate family” shall mean any
relationship by blood, marriage or adoption, not more remote than first
cousin.

     

    
      
        
        

      

      
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    4.10           Gross-Up
Rights.

    (a)           Sale of New
Securities.  For so long as the Investor, together with his
Affiliates, owns 5% or more of all of the outstanding shares of Common Stock
(counting for such purposes all shares of Common Stock into or for which any
securities owned by the Investor are directly or indirectly convertible or
exercisable and, for the avoidance of doubt, including as shares owned and
outstanding all Common Shares issued by the Company after the Closing) (before
giving effect to any issuances triggering provisions of this Section), if, at
any time after the date hereof, the Company makes any public or nonpublic
offering or sale of any equity (including Common Stock, preferred stock or
restricted stock), or any securities, options or debt that is convertible or
exchangeable into equity or that includes an equity component (such as, an
“equity kicker”) (including any hybrid security) (any such security, a “New Security”) (other than
(i) any Common Stock or other securities issuable upon the exercise or
conversion of any securities of the Company issued or agreed or contemplated to
be issued as of the date hereof, including the Public Offering; (ii) pursuant to
the granting or exercise of employee stock options or other stock incentives
pursuant to the Company’s stock incentive plans approved by the Board of
Directors or the issuance of stock pursuant to the Company’s employee stock
purchase plan approved by the Board of Directors or similar plan where stock is
being issued or offered to a trust, other entity or otherwise, for the benefit
of any employees, officers or directors of the Company, in each case in the
ordinary course of providing incentive compensation; or (iii) issuances of
capital stock as full or partial consideration for a merger, acquisition, joint
venture, strategic alliance, license agreement or other similar nonfinancing
transaction) at a price per share for such New Security (or conversion or
exchange price per share) that is less than 95% of the Market Price on the last
trading day preceding the date of the agreement with respect to the issuance of
such New Securities, then the Investor shall be afforded the opportunity to
acquire from the Company for the same price (net of any underwriting discounts
or sales commissions) and on the same terms (except that, to the extent
permitted by law and the Articles of Incorporation and bylaws of the Company,
the Investor may elect to receive such securities in nonvoting form, convertible
into voting securities in a widely dispersed or public offering) as such
securities are proposed to be offered to others, up to the amount of New
Securities in the aggregate required to enable him to maintain his proportionate
Common Stock-equivalent interest in the Company immediately prior to any such
issuance of New Securities; provided, that such right to acquire such securities
is not transferrable except to Affiliates of the Investor.  The amount
of New Securities that the Investor shall be entitled to purchase in the
aggregate shall be determined by multiplying (x) the total number or principal
amount of such offered New Securities by (y) a fraction, the numerator of which
is the number of shares of Common Stock held by the Investor, and the
denominator of which is the number of shares of Common Stock then
outstanding.  For the purposes of this Section 4.10, the “Market Price” of the Common
Stock (or other relevant capital stock or equity interest) on any date of
determination means the closing sale price or, if no closing sale price is
reported, the last reported sale price of the shares of the Common Stock (or
other relevant capital stock or equity interest) on NASDAQ on such
date.  If the Common Stock (or other relevant capital stock or equity
interest) is not traded on NASDAQ on any date of determination, the closing
price of the Common Stock (or other relevant capital stock or equity interest)
on such date of determination means the closing sale price as reported in the
composite transactions for the principal U.S. national or regional securities
exchange on which the Common Stock (or other relevant capital stock or equity
interest) is so listed or quoted, or, if no closing sale price is reported, the
last reported sale price on the principal U.S. national or regional securities
exchange on which the Common Stock (or other relevant capital stock or equity
interest) is so listed or quoted, or if the Common Stock (or other relevant
capital stock or equity interest) is not so listed or quoted on a U.S. national
or regional securities exchange, the last quoted bid price for the Common Stock
(or other relevant capital stock or equity interest) in the over-the-counter
market as reported by Pink Sheets LLC or similar organization, or, if that bid
price is not available, the market price of the Common Stock (or other relevant
capital stock or equity interest) on that date as determined by a nationally
recognized independent investment banking firm retained by the Company for this
purpose.

    
      
         

      

      
        -48-

        
          

        

      

      
         

      

    

    (b)           Notice.  In
the event the Company proposes to offer or sell New Securities, it shall give
the Investor written notice of its intention, describing the price (or range of
prices), anticipated amount of securities, timing, and other terms upon which
the Company proposes to offer the same (including, in the case of a registered
public offering and to the extent possible, a copy of the prospectus included in
the registration statement filed with respect to such offering), no later than
two business days, as the case may be, after the initial filing of a
registration statement with the SEC with respect to an underwritten public
offering, after the commencement of marketing with respect to a Rule 144A
offering or after the Company proposes to pursue any other
offering.  The Investor shall have 5 business days from the date of
receipt of such a notice to notify the Company in writing that he intends to
exercise his rights provided in this Section 4.10 and, as to the amount of New
Securities the Investor desires to purchase, up to the maximum amount calculated
pursuant to Section 4.10(a).  Such notice shall constitute a
nonbinding indication of interest of the Investor to purchase the amount of New
Securities so specified at the price and other terms set forth in the Company’s
notice to it.  The failure of the Investor to respond within such 5
business day period shall be deemed to be a waiver of such Investor’s rights
under this Section 4.10 only with respect to the offering described in the
applicable notice.

     

    (c)           Purchase
Mechanism.  If the Investor exercises his rights provided in
this Section 4.10, the closing of the purchase of the New Securities with
respect to which such right has been exercised shall take place within 30
calendar days after the giving of notice of such exercise, which period of time
shall be extended for a maximum of 180 days in order to comply with applicable
laws and regulations (including receipt of any applicable regulatory or
stockholder approvals).  Each of the Company and the Investor agrees
to use commercially reasonable efforts to secure any regulatory or stockholder
approvals or other consents, and to comply with any law or regulation necessary
in connection with the offer, sale and purchase of, such New
Securities.

     

    (d)           Failure of
Purchase.  In the event the Investor fails to exercise his
rights provided in this Section 4.10 within said 5 business day period or, if so
exercised, the Investor is unable to consummate such purchase within the time
period specified in Section 4.10(c) because of his failure to obtain any
required regulatory or stockholder consent or approval, the Company shall
thereafter be entitled (during the period of 60 days following the conclusion of
the applicable period) to sell or enter into an agreement (pursuant to which the
sale of the New Securities covered thereby shall be consummated, if at all,
within 90 days from the date of said agreement) to sell the New Securities not
elected to be purchased pursuant to this Section 4.10 by the Investor or which
the Investor is unable to purchase because of such failure to obtain any such
consent or approval, at a price and upon terms no more favorable in the
aggregate to the purchasers of such securities than were specified in the
Company’s notice to the Investor.  Notwithstanding the foregoing, if
such sale is subject to the receipt of any regulatory or stockholder approval or
consent or the expiration of any waiting period, the time period during which
such sale may be consummated shall be extended until the expiration of five (5)
business days after all such approvals or consents have been obtained or waiting
periods expired, but in no event shall such time period exceed 180 days from the
date of the applicable agreement with respect to such sale.  In the
event the Company has not sold the New Securities or entered into an agreement
to sell the New Securities within said 60-day period (or sold and issued New
Securities in accordance with the foregoing within 90 days from the date of said
agreement (as such period may be extended in the manner described above for a
period not to exceed 180 days from the date of said agreement)), the Company
shall not thereafter offer, issue or sell such New Securities without first
offering such securities to the Investor in the manner provided
above.

    
      
         

      

      
        -49-

        
          

        

      

      
         

      

    

     

    (e)           Non-Cash
Consideration.  In the case of the offering of securities for a
consideration in whole or in part other than cash, including securities acquired
in exchange therefor (other than securities by their terms so exchangeable), the
consideration other than cash shall be deemed to be the fair value thereof as
determined by the Board of Directors; provided, however, that such fair value
as determined by the Board of Directors shall not exceed the aggregate market
price of the securities being offered as of the date the Board of Directors
authorizes the offering of such securities.

     

    (f)           Cooperation.  The
Company and the Investor shall cooperate in good faith to facilitate the
exercise of the Investor’s rights under this Section 4.10, including to secure
any required approvals or consents.

     

    4.11           Anti-Takeover
Matters.

     

    (a)           Takeover Laws; No Rights
Triggered.  If any Takeover Law may become, or may purport to
be, applicable to the transactions contemplated or permitted by this Agreement,
the Company and the members of the Board of Directors shall grant such approvals
and take such actions as are necessary so that the transactions contemplated or
permitted by this Agreement, the other Transaction Documents may be consummated,
as promptly as practicable, on the terms contemplated by this Agreement and the
other respective Transaction Documents, as the case may be, and otherwise act to
eliminate or minimize the effects of any Takeover Law on any of the transactions
contemplated or permitted by this Agreement and the other Transaction
Documents.

     

    (b)           Oregon Business Combination
Statute.  The Board of Directors has duly adopted an
irrevocable resolution as follows (the “Business Combination Exemption
Resolution”):

     

    “RESOLVED,
that pursuant to Section 60.835 of the Oregon Business Corporation Act (“OBCA”),
the Board of Directors of the Corporation, for the specific purpose of
establishing an irrevocable exemption from Section 60.835 of the OBCA, hereby
approves thereunder (i) the entering into, and all of the transactions relating
to and contemplated or permitted by, the Securities Purchase Agreement, between
the Corporation and David F. Bolger, in his individual capacity, including,
without limitation, (A) the assignment of any rights thereunder, (B) any person
or entity becoming an “interested shareholder” as defined in Section 60.825 of
the OBCA including, without limitation, David F. Bolger, the estate of David F.
Bolger, any present or future affiliates or associates of David F. Bolger, any
trust David F. Bolger has or may establish, Thomas M. Wells (whether
individually or in another capacity) and Clarence Jones (collectively, the
“Covered Persons”) and
(C) the transfer of any shares of common stock or other securities of the
Corporation in accordance with the terms and conditions of the Securities
Purchase Agreement, (ii) any transaction in which any Covered Person becomes an
“interested shareholder” as defined in Section 60.825 of the OBCA or acquires
additional shares of common stock or other securities of the Corporation
thereafter and (iii) any “business combination” as defined in Section 60.825 of
the OBCA involving any Covered Person.”

    
      
         

      

      
        -50-

        
          

        

      

      
         

      

    

     

    (c)           Business Combination
Exemption.  The Business Combination Exemption Resolution
adopted by the Company is a valid action of the Board of Directors of the
Company, binding on the Company, and constitutes a valid and irrevocable
exemption by the Company from Section 60.835 of the Oregon Business Corporation
Act as to any transaction, person or entity described in such
resolution.

     

    4.12           Additional Regulatory
Matters.

     

    (a)           Each
of the Company and the Investor agrees to cooperate and use its reasonable best
efforts to ensure, including by communicating with each other with respect to
their respective purchases of Common Stock, that none of the Investor’s
Affiliates will become, or control, a “bank holding company” within the meaning
of the BHC Act and the Change in Bank Control Act of 1978.

     

    (b)           The
Company shall not knowingly take any action which would reasonably be expected
to pose a substantial risk that any of the Investor’s Affiliates will become, or
control, a “bank holding company” within the meaning of the BHC Act, including
undertaking any redemption, recapitalization, or repurchase of Common Stock, of
securities or rights, options, or warrants to purchase Common Stock, or
securities of any type whatsoever that are, or may become, convertible into or
exchangeable into or exercisable for Common Stock in each case, where the
Investor is not given the right to participate in such redemption,
recapitalization, or repurchase to the extent of the Investor’s pro rata
proportion.

     

    (c)           Notwithstanding
anything in this Agreement, in no event will the Investor or any of his
Affiliates be obligated to:

     

    (1)           Without
limiting clause (2) below, (A) propose or accept any divestiture of any of the
Investor’s or any of his Affiliates’ assets, or (B) accept any operational
restriction on the Investor’s or any of his Affiliates’ business, or agree to
take any action that limits the Investor’s or his Affiliates’ commercial
practices in any way (except as they relate to the Company and the Company
Subsidiaries) ) including, without limitation, by requiring the modification of
governance, fee or carried interest arrangements with respect to, or otherwise
by imposing any capital or other requirements on, the Investor or any of its
Affiliates, (C) agree to provide capital to, or otherwise maintain or
contribute, directly or indirectly, to the capital of, the Company or any
Company Subsidiary (including the Company Bank) other than the aggregate amount
of the Purchase Price, or (D) register as a bank holding company, in each case
in order to obtain any consent, acceptance or approval of any Governmental
Entity to consummate the transactions contemplated by this Agreement and the
other Bolger Transaction Document; or

     

    (2)           Propose
or agree to accept any term or condition or otherwise modify the terms of this
Agreement or any other Bolger Transaction Document, including, for the avoidance
of doubt, the terms or the amount of the Securities to be delivered by the
Company under this Agreement, to obtain any consent, acceptance, approval of any
Governmental Entity to the consummation of the transactions contemplated by this
Agreement and the other Bolger Transaction Document if such term, condition,
modification or confirmation would (A) materially adversely affect (with respect
to the Investor or his Affiliates) any material term of the transactions, or (B)
reasonably be expected to adversely affect (with respect to the Investor or his
Affiliates) any material financial term of the transactions contemplated by this
Agreement and the other Bolger Transaction Document or the anticipated benefits
to the Investor and its Affiliates hereunder.

    
      
         

      

      
        -51-

        
          

        

      

      
         

      

    

     

    ARTICLE
V

     

    Termination

     

    5.1           Termination. This
Agreement may be terminated prior to the Closing:

     

    (a)           by
mutual written consent of the Investor and the Company;

     

    (b)           by
the Company, upon written notice to the Investor, in the event that the
conditions of Closing set forth in Section 1.2(c)(2) are not satisfied on or
before December 31, 2009;

     

    (c)           by
the Company or the Investor, upon written notice to the other parties, in the
event that any Governmental Entity shall have issued any order, decree or
injunction or taken any other action restraining, enjoining or prohibiting any
of the transactions contemplated by this Agreement, and such order, decree,
injunction or other action shall have become final and
nonappealable;

     

    (d)           by
the Investor, upon written notice to the Company, in the event that the
conditions of Closing set forth in Section 1.2(c)(1) are not satisfied on or
before December 31, 2009;

     

    (e)           by
the Investor, if the Investor or any of its Affiliates receives notice from or
is otherwise advised by the FDIC that the contribution by the Company to its
principal depository institution Subsidiary contemplated by Section
1.2(c)(1)(vi) would not satisfy the “Leverage Capital Ratio” and other capital
requirements of the FDIC set forth in paragraph 4 of the Order, or comparable
requirements in any other enforcement order issued by a federal or state banking
regulator between the date of this agreement and the Closing; or

     

    (f)           by
the Investor, if a “change in control” within the meaning of any Benefit Plan
occurs on or after the date hereof but prior to the Closing
Date.

    
      
         

      

      
        -52-

        
          

        

      

      
         

      

    

     

    5.2           Effects of
Termination.

     

      In
the event of any termination of this Agreement as provided in Section 5.1,
this Agreement (other than Section 3.2, Section 4.6, this Section 5.2 and
Article VI (other than Section 6.1) and all applicable defined terms, which
shall remain in full force and effect) shall forthwith become wholly void and of
no further force and effect; provided that nothing herein
shall relieve any party from liability for willful breach of this
Agreement.

     

    ARTICLE
VI

     

    Miscellaneous

     

    6.1           Survival.  Each
of the representations and warranties set forth in this Agreement shall survive
the Closing under this Agreement but only for a period of 24 months following
the Closing Date (or until final resolution of any claim or action arising from
the breach of any such representation and warranty, if notice of such breach was
provided prior to the end of such period) and thereafter shall expire and have
no further force and effect; provided that the
representations and warranties in Sections 2.2(a), 2.2(b), 2.2(c), 2.2(d)
and 2.3(a) shall survive indefinitely and the representations and warranties in
Sections 2.2(i),
2.2(p) and 2.2(u) shall survive until 90 days after the expiration of the
applicable statutory periods of limitations.  Except as otherwise
provided herein, all covenants and agreements contained herein shall survive for
the duration of any statutes of limitations applicable thereto or until, by
their respective terms, they are no longer operative.

     

    6.2           Amendment.  No
amendment or waiver of this Agreement will be effective with respect to any
party unless made in writing and signed by an officer of a duly authorized
representative of such party.

     

    6.3           Waivers.  No
failure or delay by any party in exercising any right, power or privilege
hereunder shall operate as a waiver thereof nor shall any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise
of any other right, power or privilege.  The conditions to each
party’s obligation to consummate the Closing are for the sole benefit of such
party and may be waived by such party in whole or in part to the extent
permitted by applicable law.  No waiver of any party to this Agreement
will be effective unless it is in a writing signed by a duly authorized officer
of the waiving party that makes express reference to the provision or provisions
subject to such waiver.

     

    6.4           Counterparts and
Facsimile.  For
the convenience of the parties hereto, this Agreement may be executed in any
number of separate counterparts, each such counterpart being deemed to be an
original instrument, and all such counterparts will together constitute the same
agreement.  Executed signature pages to this Agreement may be
delivered by facsimile and such facsimiles will be deemed as sufficient as if
actual signature pages had been delivered.

     

    6.5           Governing
Law.  This
Agreement will be governed by and construed in accordance with the laws of the
State of New York applicable to contracts made and to be performed entirely
within such State.  The parties hereto irrevocably and unconditionally
agree that any suit or proceeding arising out of or relating to this Agreement
and the transactions contemplated hereby will be tried exclusively in the U.S.
District Court for the Southern District of New York or, if that court does not
have subject matter jurisdiction, in any state court located in The City and
County of New York and the parties agree to submit to the jurisdiction of, and
to venue in, such courts.

    
      
         

      

      
        -53-

        
          

        

      

      
         

      

    

    

      6.6           Waiver of Jury
Trial.  EACH OF THE PARTIES HERETO HEREBY IRREVOCABLY WAIVES
ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR
RELATED TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

       

      6.7           Notices.  Any
notice, request, instruction or other document to be given hereunder by any
party to the other will be in writing and will be deemed to have been duly given
(a) on the date of delivery if delivered personally or by telecopy or facsimile,
upon confirmation of receipt, (b) on the first business day following the date
of dispatch if delivered by a recognized next-day courier service, or (c) on the
third business day following the date of mailing if delivered by registered or
certified mail, return receipt requested, postage prepaid.  All
notices hereunder shall be delivered as set forth below, or pursuant to such
other instructions as may be designated in writing by the party to receive such
notice.

       

      (1)           If
to the Investor:

       

      David F.
Bolger

      c/o
Bolger & Co., Inc.

      79
Chestnut Street

      Ridgewood,
New Jersey 07450

       

      Facsimile:  (201)
670-9685

       

      with a
copy to (which copy alone shall not constitute notice):

       

      Wells,
Jaworski, & Liebman LLP

      12 Route
17 North

      Paramus,
New Jersey 07653

      Attn:  Thomas
M. Wells, Esq.

      Facsimile:  (201)
587-8845

      

      and

      

      Sullivan
& Cromwell LLP

      125 Broad
Street

      New York,
New York  10004

      Attn:  Mark
J. Menting and Robert W. Downes

      Facsimile:  (212)
558-3588

      
        
           

        

        
          -54-

          
            

          

        

        
           

        

      

      (2)           If
to the Company:

       

      Cascade
Bancorp

      1100 N.W.
Wall Street

      Bend,
Oregon  97701

      Attn:  Chief
Executive Officer

      Facsimile:  (541)
617-3149

       

      with
copies to (which copy alone shall not constitute notice):

       

      Davis
Wright Tremaine LLP

      1201
Third Avenue, Suite 2200

      Seattle,
Washington  98101

      Attn:  David
R. Wilson

      Facsimile:  (206)
757-7274

       

      6.8           Entire Agreement;
Assignment.  This Agreement (including the Exhibits, Schedules,
and Disclosure Schedules hereto), the Bolger Transaction Document, the
Shareholders Agreement and the Agreement of Merger, dated as of
December 27, 2005, by and among F&M Holding Company, the Company, Igloo
Acquisition Corporation and the Investor constitute the entire agreement, and
supersede all other prior agreements, understandings, representations and
warranties, both written and oral, between the parties, with respect to the
subject matter hereof; neither this Agreement nor the rights and obligations
hereunder may be assigned, sold, transferred, delegated, or otherwise disposed
of by any party hereto except (i) with the express prior written consent of the
other party or (ii) upon the Investor’s death, the rights and obligations of the
Investor under this Agreement shall be assigned to the Investor’s estate or to a
successor-in-interest by operation of law without any further act, including to
his heirs.  Any purported assignment, transfer or delegation in
violation of this Section 6.8 shall be null and void.  Except as
otherwise provided in this Section 6.8, the terms and conditions of this
Agreement shall inure to the benefit of and be binding on the respective heirs,
successors, devisees and assigns of the parties.  For the avoidance of
doubt, the Company agrees that the Investor may assign his rights and
obligations under this Agreement to any Affiliate and any such transferee shall
be included in the term “Investor”.

       

      6.9           Other
Definitions.  Wherever required by the context of this
Agreement, the singular shall include the plural and vice versa, and the
masculine gender shall include the feminine and neuter genders and vice versa,
and references to any agreement, document or instrument shall be deemed to refer
to such agreement, document or instrument as amended, supplemented or modified
from time to time.  All article, section, paragraph or clause
references not attributed to a particular document shall be references to such
parts of this Agreement, and all exhibit, annex and schedule references not
attributed to a particular document shall be references to such exhibits,
annexes and schedules to this Agreement.  When used
herein:

       

      (1)           the
term “subsidiary” means
those corporations, banks, savings banks, associations and other persons of
which such person owns or controls 25% or more of the outstanding equity
securities either directly or indirectly through an unbroken chain of entities
as to each of which 25% or more of the outstanding equity securities is owned
directly or indirectly by its parent or otherwise controlled by such parent and
any entity that would be a “subsidiary” for purposes of the BHC Act; provided, however, that there shall not
be included any such entity to the extent that the equity securities of such
entity were acquired in satisfaction of a debt previously contracted in good
faith or are owned or controlled in a bona fide fiduciary
capacity;

      
        
           

        

        
          -55-

          
            

          

        

        
           

        

      

      (2)           the
term “Affiliate” means,
with respect to any person, any person directly or indirectly controlling,
controlled by or under common control with, such other person.  For
purposes of this definition, “control” (including, with
correlative meanings, the terms “controlled by” and “under common control with”)
when used with respect to any person, means the possession, directly or
indirectly, of the power to cause the direction of management and/or policies of
such person, whether through the ownership of voting securities by contract or
otherwise and “controlled” for purposes of the BHC Act;

       

      (3)           the
word “or” is not exclusive;

       

      (4)           the
words “including,” “includes,” “included” and “include” are deemed to be
followed by the words “without
limitation”;

       

      (5)           the
terms “herein,” “hereof” and “hereunder” and other words of
similar import refer to this Agreement as a whole and not to any particular
section, paragraph or subdivision;

       

      (6)           the
words “it” or “its” are deemed to mean
“him” or “her” and “his” or “her”, as applicable, when
referring to an individual;

       

      (7)           “business day” means any day
except Saturday, Sunday and any day which shall be a legal holiday or a day on
which banking institutions in the State of New York or the State of Oregon
generally are authorized or required by law or other governmental actions to
close;

       

      (8)           “person” has the meaning given
to it in Section 3(a)(9) of the Exchange
Act and as used in Sections 13(d)(3) and 14(d)(2) of the Exchange
Act;

       

      (9)           “Beneficially Own,” “Beneficial Owner” and “Beneficial Ownership” are
defined in Rules 13d-3 and 13d-5 of the Exchange Act; and

       

      (10)         “knowledge of the Company” or
“Company’s knowledge”
means the actual knowledge after due inquiry of the executive officers of the
Company.

       

      6.10         Captions.  The
article, section, paragraph and clause captions herein are for convenience of
reference only, do not constitute part of this Agreement and will not be deemed
to limit or otherwise affect any of the provisions hereof.

      
        
           

        

        
          -56-

          
            

          

        

        
           

        

      

      6.11         Severability.  If
any provision of this Agreement or the application thereof to any person
(including the officers and directors of the Investor and the Company) or
circumstance is determined by a court of competent jurisdiction to be invalid,
void or unenforceable, the remaining provisions hereof, or the application of
such provision to persons or circumstances other than those as to which it has
been held invalid or unenforceable, will remain in full force and effect and
shall in no way be affected, impaired or invalidated thereby, so long as the
economic or legal substance of the transactions contemplated hereby is not
affected in any manner materially adverse to any party.  Upon such
determination, the parties shall negotiate in good faith in an effort to agree
upon a suitable and equitable substitute provision to effect the original intent
of the parties.

       

      6.12         No Third-Party
Beneficiaries.  Nothing contained in this Agreement, expressed
or implied, is intended to confer or shall confer upon any person other than the
express parties hereto, any benefit right or remedies, except that the
provisions of Sections 3.4, 4.3, 4.6, 4.7 and 4.9 shall inure to the benefit of
the persons referred to in those Sections, including any Holders.  The
representations and warranties set forth in Article II and the covenants set
forth in Articles III and IV have been made solely for the benefit of the
parties to this Agreement and (a) may be intended not as statements of fact, but
rather as a way of allocating the risk to one of the parties if those statements
prove to be inaccurate; (b) have been qualified by reference to the Disclosure
Schedules of each party, each of which contains certain disclosures that are not
reflected in the text of this Agreement; and (c) may apply standards of
materiality in a way that is different from what may be viewed as material by
shareholders of, or other investors in, the Company.

       

      6.13         Time of
Essence.  Time is of the essence in the performance of each and
every term of this Agreement.

       

      6.14         Public
Announcements.  Subject to each party’s disclosure obligations
imposed by law or regulation, each of the parties hereto will cooperate with
each other in the development and distribution of all news releases and other
public information disclosures with respect to this Agreement and any of the
transactions contemplated by this Agreement or the other Transaction Documents,
and no party hereto will make any such news release or public disclosure without
first consulting with the other party hereto and receiving its consent (which
shall not be unreasonably withheld, conditioned, or delayed), and each party
shall coordinate with the other with respect to any such news release or public
disclosure.

       

      6.15         Specific
Performance.  The parties agree that irreparable damage would
occur in the event that any of the provisions of this Agreement were not
performed in accordance with their specific terms.  It is accordingly
agreed that the parties shall be entitled to seek specific performance of the
terms hereof, this being in addition to any other remedies to which they are
entitled at law or equity.

       

      6.16         No
Obligation.  It is understood and agreed that unless and until
there is a definitive executed Agreement among the parties with respect to the
transactions contemplated herein, no party shall be under any legal obligation
of any kind hereunder with respect to such transactions or otherwise, and by
virtue of any written or oral expressions by the parties’ respective
representatives.

       

      *  *  *

      
        
           

        

        
          -57-

          
            

          

        

        
           

        

      

      IN WITNESS WHEREOF, this
Agreement has been duly executed and delivered by the duly authorized officers
of the parties hereto as of the date first herein above written.

       

      
        
          
            
              
                
                  
                    	 
      	
                            CASCADE
      BANCORP

                          
	 
      	 
      	 
      
	 
      	
                            By:

                          	/s/
      Patricia L. Moss
	 
      	 
      	Name:
      Patricia
      L. Moss
	 
      	 
      	Title:  
      Chief
      Executive Officer
	 
      	 
      	 
      
	 
      	
                            DAVID
      F. BOLGER

                             

                          
	 
      	

                            /s/
      David F.
Bolger

                          

                  

                

              

            

          

        

      

      

      [Signature
Page to Securities Purchase Agreement]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      

      
        
          
            
              	 
      	
                      TWO-FORTY ASSOCIATES,
      L.P., solely for
      purposes of Sections 3.4, 4.7 and 4.8 of the Agreement

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	/s/
      David
      F. Bolger
	 
      	 
      	
                      Name:

                    	

                      David
      F. Bolger  

                    
	 
      	 
      	
                      Title:

                    	Trustee

            

          

        

      

      

      
        
          
            
              	 
      	
                      THE DAVID F. BOLGER 2008
      GRANTOR RETAINED ANNUITY TRUST, solely for purposes of Sections
      3.4, 4.7 and 4.8 of the Agreement

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	/s/
      David
      F. Bolger  
	 
      	 
      	
                      Name:

                    	David
      F. Bolger 
	 
      	 
      	
                      Title:

                    	Trustee

            

          

        

      

      

      
        
          
            
              	 
      	
                      THE DAVID F. BOLGER 2008
      NONGRANTOR CHARITABLE LEAD ANNUITY TRUST, solely for purposes of
      Sections 3.4, 4.7 and 4.8 of the Agreement

                    
	 
      	 
      	 
      
	 
      	
                      By:

                    	Thomas
      M. Wells
	 
      	 
      	
                      Name:

                    	Thomas
      M. Wells  
	 
      	 
      	
                      Title:

                    	Trustee 

            

          

        

      

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      EXHIBIT
A:  Form of Opinion of Counsel

       

      October
[●], 2009

       

      

       

      To the
Investors listed on Schedule A

      attached
hereto

       

      Ladies
and Gentlemen:

       

      We have
acted as counsel to Cascade Bancorp, an Oregon corporation (the “Company”), for purposes of
rendering an opinion of counsel in connection with the Company’s issuance on the
date hereof to the Investors listed on Schedule A attached hereto (collectively,
the “Investors” and
each individually, an “Investor”) of [●] shares of
common stock, no par value, of the Company (the “Common Stock”) pursuant to
Securities Purchase Agreements, dated as of October 29, 2009, between the
Company and each Investor (the “Agreements”) (the “Offering”).   This
opinion is being furnished in connection with Closing of the transactions
contemplated by the Agreements.  Capitalized terms used herein which
are not otherwise defined shall have the meanings given to them in the
Agreements.

       

      The law
covered by the opinions expressed herein is limited to Oregon Revised Statute
and the federal laws of the United States of America.

      

      This
opinion letter is to be interpreted in accordance with the Guidelines for the
Preparation of Closing Opinions issued by the Committee on Legal Opinions of the
American Bar Association’s Business Law Section as published in 57 Business
Lawyer 875 (February 2002) and the State on the Role of Customary Practice in
the Preparation and Understanding of Third-Party Legal Opinions published in 63
The Business Lawyer 1277 (August 2008).

       

      
        	
                A.

              	
                Assumptions

              

      

       

      For
purposes of this
opinion letter, we have relied
with your permission on the following assumptions:

       

      
        	
                A-1

              	
                As
      to matters of fact material to the opinions expressed herein, we have
      relied upon the statements or
      certificates of the Company and you pursuant to the Agreements and
      upon certificates and statements of government officials and of officers
      of the Company. In addition, we have examined originals or copies of
      documents, corporate records and other writings that we consider relevant
      for the purposes of this opinion. In such examination, we have assumed
      that the signatures on documents and instruments examined by us are
      authentic, that each is what it purports to be, and that all documents and
      instruments submitted to us as copies or facsimiles conform with the
      originals, which facts we have not independently
  verified.

              

      

       

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      
        	
                A-2

              	
                In
      making our examination of documents, we have further assumed that (i) each
      party to such documents (other than the Company in connection with the
      Agreements) had the power, legal competence and capacity to enter into and
      perform all of such party’s obligations thereunder, (ii) each party to
      such documents (other than the Company in connection with the Agreements)
      has duly authorized, executed and delivered such documents, (iii) each of
      such documents is enforceable against and binding upon the parties thereto
      (other than the Company in connection with the Agreements), (iv) there is
      no fact or circumstance relating to you or your business that might
      prevent you from enforcing any of the rights provided for in the
      Agreements, (v) there has not been any mutual mistake of fact or
      misunderstanding, fraud, duress or undue influence, (vi) the conduct of
      the parties to the Agreements has complied with any requirement of good
      faith, fair dealing and conscionability, and (vi) you, and any agent
      acting for you in connection with the transactions contemplated by the
      Agreements, have acted in good faith and without notice of any defense
      against the enforcement of any rights created by the Agreements. We have
      also assumed that there are no extrinsic agreements or understandings
      among the parties to the Agreements that would modify or interpret the
      terms of the Agreements or the respective rights or obligations of the
      parties thereunder.

              

      

       

      
        
          	
                  B.

                	
                  Opinions

                

        

      

       

      Based
upon the foregoing, and subject to the assumptions, exceptions, limitations and
qualifications stated herein, it is our opinion that:

       

      
        	
                B-1

              	
                The
      Company has been duly organized and is validly existing as a corporation
      under the laws of the State of
Oregon.

              

      

       

      
        	
                B-2 

              	
                All
      of the issued shares of capital stock of the Company, including the shares
      of Common Stock issued pursuant to the Agreements, have been duly
      authorized and, when issued
      pursuant to the Agreements upon receipt of the consideration provided for
      therein, will be validly issued, fully paid and
    nonassessable.

              

      

       

      
        	
                B-3

              	
                It
      is not necessary to register the shares of Common Stock issued pursuant to
      the Agreements under the Securities
      Act of 1933 in connection with the offer, sale and delivery of the shares
      of Common Stock by the Company to the Investors in accordance with
      the Agreements. 

              

      

       

      
        	
                B-4

              	
                The
      Company’s authorized equity capitalization is as set forth in Section
      2.2(c) of the Securities Purchase
Agreement.

              

      

       

      
        	
                B-5

              	
                Each
      of the Agreements has been duly
      authorized, executed and delivered by the Company and constitutes the
      legal, valid and binding obligation of the Company enforceable against the
      Company in accordance with its terms.

              

      

       

      
        
           

        

        
          -2-

          
            

          

        

        
           

        

      

      
        	
                B-6

              	
                The
      sale and issuance of the shares of Common Stock will not be subject to any
      preemptive rights, rights of first offer or similar rights of any person
      under (a) the certificate of incorporation of the Company as currently in
      effect (the “Charter”), (b) the
      bylaws of the Company as currently in effect (the “Bylaws”), or (c) any
      Company Significant Agreement.

              

      

       

      
        	
                B-7

              	
                The
      sale and issuance of the Common Stock, in accordance with the Agreements
      and the execution, delivery and performance by the Company of its
      obligations under the Agreements will not violate (a) the Charter, (b) the
      Bylaws, (c) applicable laws of the State of Oregon, (d) applicable federal
      laws of the United States or (e) any Company Significant
      Agreement.

              

      

       

      
        	
                B-8

              	
                No
      consent, approval, authorization or order of, or filing with, any Federal
      or Oregon governmental authority or regulatory body is required to be
      obtained or made by the Company for the consummation by the Company of the
      transactions contemplated by the Agreements, including, without
      limitation, each Other Private Placement and the Public Offering, in
      connection with the offering, issuance and sale of the Common Stock,
      except for the filing of a Form D pursuant to federal and applicable state
      blue sky laws and such as have been
obtained.

              

      

       

      
        	
                B-9

              	
                The
      only vote of the stockholders of the Company required to approve (i) the
      amendment of the Articles of Incorporation to increase the number of
      authorized shares of Common Stock to at least such number as shall be
      sufficient to permit the issuance of Common Stock contemplated in the
      Agreements, the issuance of Common Stock in connection with the Other
      Private Placements and the issuance of Common Stock in connection with the
      Public Offering is that more votes are  cast for such proposal
      than are cast against such proposal and (ii) the issuance of such
      authorized shares of Common Stock for purposes of rule 5635 of NASDAQ’s
      listing rules is a majority of the votes cast on such
      proposal.

              

      

       

      
        	
                C.

              	
                Qualifications

              

      

       

      
        	
                C-1

              	
                In
      giving our opinion in B-1 with respect to the valid existence of the
      Company, we are relying solely and without independent investigation on
      our review and examination of the certificate of the Secretary of State of
      the State of Oregon.

              

      

       

      
        	
                C-2

              	
                Insofar as
      performance by the Company of its obligations under the Agreements is
      concerned, we express no opinion as to bankruptcy, insolvency, fraudulent
      transfer, reorganization, moratorium and similar laws of general
      applicability relating to or affecting creditors' rights and to general
      equitable principles, whether considered in proceedings at law or
      equity.

              

      

       

      
        	
                D.

              	
                Exclusions

              

      

       

      In
addition to the foregoing, the opinions expressed above are specifically subject
to the following exclusions:

      
        
           

        

        
          -3-

          
            

          

        

        
           

        

      

       

      
        	
                D-1

              	
                We
      have assumed, and express no opinion with respect to, (a) the correctness,
      accuracy and completeness of representations and warranties made by you
      and set forth in the Agreements or otherwise made, orally or in writing,
      in connection with the offering of the Common Stock and (b) the validity
      of any wire transfers, drafts or checks tendered by
  you.

              

      

       

      
        	
                D-2

              	
                We
      express no opinion as to whether the members of the Company’s Board of
      Directors have complied with their fiduciary duties in connection with the
      authorization and performance of the
Agreements.

              

      

       

      

       

      The
opinions set forth in Part B may be relied upon by you only in connection with
the Agreements and the transactions described therein, and may not be used or
relied upon by you for any other purpose or by any other person for any purpose
whatsoever without, in each instance, our prior written consent.

       

      This
letter speaks as of the time of its delivery on the date set forth herein. We
undertake no obligation to advise you as to subsequent occurrences or
discoveries.

      

      Very
truly yours,

       

       

      

      Davis
Wright Tremaine LLP

      
        
           

        

        
          -4-

          
            

          

        

        
           

        

      

      

      EXHIBIT
B:  Form of Disclosure Letter of Counsel

       

      Although
we have not undertaken to determine independently and do not assume any
responsibility for the accuracy, completeness or fairness of any of the
statements made in the Registration Statement, the Time of Sale Prospectus, or
the Prospectus, and the documents incorporated by reference therein, and any
further amendments or supplements thereto, as applicable, except to the extent
set forth in Paragraph [  ] and Paragraph [  ], we have
reviewed the Registration Statement, the Time of Sale Prospectus, and the
Prospectus, certain corporate and other records and documents furnished to us by
the Company, as well as the documents delivered to you at the Closing, and
participated in conferences with representatives of the Company, their
accountants, you and your counsel at which the contents of the Registration
Statement, the Time of Sale Prospectus, and the Prospectus and related matters
were discussed and reviewed.  On the basis of the information that was
developed in the course of the performance of the services referred to above, we
advise you that nothing has come to our attention that has caused us to believe
that (i) the documents incorporated by reference in the Prospectus relating to
the Offered Shares or any further amendment or supplement thereto made by the
Company prior to the Applicable Time, when such documents became effective or
were so filed under the Exchange Act contained an untrue statement of a material
fact or omitted to state a material fact necessary in order to make the
statements therein, in the light of the circumstances under which they were made
when such documents were so filed, not misleading, (ii) any part of the
Registration Statement, when such part became effective, contained an untrue
statement of a material fact or omitted to state a material fact required to be
stated therein or necessary to make the statements therein not misleading, (iii)
the Time of Sale Prospectus, as of the Applicable Time and as of the Closing
Date, contained any untrue statement of a material fact or omitted to state any
material fact necessary in order to make the statements therein, in the light of
circumstances under which they were made, not misleading, or (iv) as of its
date, as of the Applicable Time and as of the Closing Date, the Prospectus
contained or contains an untrue statement of a material fact or omitted or omits
to state a material fact necessary to make the statements therein, in the light
of the circumstances under which they were made, not misleading.  We
further advise you that we have no knowledge of any amendment to the
Registration Statement required to be filed or of any contracts or other
documents of a character required to be filed as an exhibit to the Registration
Statement or required to be incorporated by reference into the Prospectus or
required to be described in the Registration Statement, the Base Prospectus or
the Prospectus which are not filed or incorporated by reference or described as
required.

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      EXHIBIT
C:  Form of Officer’s Certificate from the Company

       

      OFFICER’S
CERTIFICATE

       

      [●],
2009

      

      The
undersigned, the Chief Executive Officer of Cascade Coast Bancorp, an Oregon
corporation (the “Company”), pursuant to
Section 1.2(c)(1)(xii) of the Securities Purchase Agreement, dated as of October
29, 2009 (the “Agreement”) between the
Company and David F. Bolger, in his individual capacity (the “Investor”), hereby certifies
to the Investor that:

       

      1.           The
Company has performed all obligations required to be performed by it at or prior
to or contemporaneously with the Closing under the Agreement.

       

      2.           The
representations and warranties of the Company set forth in Section 2.2 of the
Agreement were true and correct in all respects as of the date of the Agreement
and are true and correct as of the Closing as though made on and as of the
Closing Date (except to the extent such representations and warranties are made
as of a specific date, in which case such representations and warranties were
true and correct in all respects as of such date).

       

      Capitalized
terms used but not defined herein shall have the meanings given to such terms in
the Agreement.

      

      [Signature
Page Follows]

       

       

       

      

      [Company
Officer’s Certificate]

      
        
           

        

        
          
          

          
            

          

        

        
           

        

      

      IN
WITNESS WHEREOF, the undersigned has executed and delivered this certificate
solely in such respective capacity and not in an individual capacity as of this
___ day of __________, 2009.

       

      
        
          
            	
                    By:  

                  	  
      
	 
      	
                    Name:  Patricia
      L. Moss

                  
	 
      	
                    Title:  Chief
      Executive Officer

                  

          

        

      

      

      [Company
Officer’s Certificate]

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